Document:

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                              EXHIBIT NUMBER 4(a)1

            CONTRACT FOR SUBSCRIPTION OF 2% WING ON CONVERTIBLE NOTE

THIS AGREEMENT dated 13 January 2004 is made

BETWEEN:

(1)   WING ON TRAVEL (HOLDINGS) LIMITED, a company incorporated in Bermuda whose
      registered office is situated at Clarendon House, 2 Church Street,
      Hamilton HM 11, Bermuda and principal place of business in Hong Kong is
      situated at 7th Floor, Paul Y. Centre, 51 Hung To Road, Kwun Tong,
      Kowloon, Hong Kong (the "COMPANY"); and

(2)   CHINA ENTERPRISES LIMITED, a company incorporated under the laws of
      Bermuda whose registered office is situated at Clarendon House, 2 Church
      Street, Hamilton HM 11 Bermuda (the "SUBSCRIBER").

WHEREAS:

(A)   The Company currently has an authorized share capital of HK$500,000,000.00
      divided into 50,000,000,000 Shares and an issued share capital of
      HK$183,167,327.70 divided into 18,316,732,770 Shares.

(B)   On 19 April 2002 the Company issued and the Subscriber procured Million
      Good (as defined below) to subscribe in cash for the 2002 Convertible Note
      (as defined below) for a principal amount of HK$120,000,000.00 upon the
      terms and subject to the conditions set out therein. The 2002 Convertible
      Note entitles the holder to convert the principal amount thereof into the
      Shares at the current conversion price of HK$0.032 per Share (subject to
      adjustment) from and up to and including 19 April 2004.

(C)   Million Good has exercised the conversion rights under the 2002
      Convertible Note to convert part of the principal amount of the 2002
      Convertible Note into Shares and, as at the date of this Agreement, the
      Company is still owing to it a principal amount of HK$84,800,000.00 under
      the 2002 Convertible Note.

(D)   The Company has conditionally agreed to issue the Note and the Subscriber
      has conditionally agreed to subscribe for the Note upon and subject to the
      terms and conditions set out in this Agreement and the Conditions.

(E)   As at the date of this Agreement, the Subscriber is the beneficial owner
      of 5,900,000,000 Shares in the capital of the Company, representing about
      32.2 per cent of the entire issued share capital of the Company.

NOW IT IS HEREBY AGREED as follows:

1.    INTERPRETATION

1.1   In this Agreement, including the Recitals hereto, the words and
      expressions set out below shall have the meanings attributed to them below
      unless the context otherwise requires:

      "Accounts"                 the audited consolidated accounts of the
                                 Company for the nine months ended 31 December
                                 2002 set out in the published December 2002
                                 Annual Report of the Company;

      "Announcement"             the announcement to be made by the Company in
                                 relation to, inter

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                                 alia, this Agreement and the proposed issue of
                                 the Note, substantially in the form annexed
                                 marked "A";

      "Business Day"             a day (excluding Saturday) on which banks in
                                 Hong Kong are generally open for business for
                                 more than four hours;

      "Certificate"              the certificate to be issued in respect of the
                                 Note substantially in the form set out in
                                 Schedule 1;

      "Completion"               the performance by the parties hereto of their
                                 respective obligations under Clause 4 and
                                 Schedule 2;

      "Completion Date"          the third Business Day after fulfillment
                                 or waiver (as the case may be) of all of the
                                 Conditions Precedent pursuant to the terms
                                 herein or such other date as the parties hereto
                                 may agree in writing, on which Completion is to
                                 take place;

      "Concert parties"          of a person means parties acting in
                                 concert with that person as defined in the
                                 Takeovers Code;

      "Conditions"               the terms and conditions to be attached to or
                                 form part of the Note (with such amendments
                                 thereto as the parties may agree), and
                                 "Condition" refers to the relative numbered
                                 paragraph of the Conditions;

      "Conditions Precedent"     the conditions precedent set out in Clause 3.1;

      "Conversion Rights"        the rights attached to the Note to
                                 convert the principal amount (or any part(s)
                                 thereof) of the Note into Shares;

      "Conversion Shares"        the Shares to be issued by the Company under
                                 the Note upon exercise of the Conversion Rights
                                 or otherwise pursuant to the Conditions;

      "2002 Convertible Note"    the 2% convertible note due 2004 in the
                                 principal amount of HK$120,000,000.00 issued by
                                 the Company on 19 April 2002 to Million Good
                                 pursuant to a subscription agreement dated 1
                                 February 2002 made between the Company and the
                                 Subscriber (the "2002 Subscription Agreement");

      "Executive"                the Executive Director for the time being of
                                 the Corporate Finance Division of the SFC or
                                 any delegate for the time being of the
                                 Executive Director;

      "Group"                    the Company and its subsidiaries (as that term
                                 is defined in section 2 of the Companies
                                 Ordinance (Chapter 32 of the Laws of Hong
                                 Kong));

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

      "Interim Report"           the published interim financial report of the
                                 Company for the six months ended 30 June 2003;

      "Listing Rules"            the Rules Governing the Listing of Securities
                                 on the Stock Exchange;

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      "Million Good"             Million Good Limited, a company incorporated in
                                 the British Virgin Islands and a wholly owned
                                 subsidiary of the Subscriber;

      "Note"                     the 2% convertible note due 2007 in the
                                 principal amount of HK$155,000,000.00 to be
                                 issued by the Company to the Subscriber or its
                                 nominee(s) pursuant hereto;

      "Notes Subscription
      Agreements"                the agreements of even date between the Company
                                 and each of Capital Strategic Investment
                                 Limited, Hutchison International Limited, Yu,
                                 Kam Yuen Lincoln, Great Honest Investment
                                 Company Limited and Citiway Investments Limited
                                 in relation to convertible notes in the
                                 aggregate principal amount of HK$195,000,000.00
                                 to be issued to them by the Company;

      "SFC"                      Securities and Futures Commission in Hong Kong;

      "Share Option Plan"        the share option scheme adopted by the Company
                                 on 3 May 2003 under which the Company may grant
                                 options to subscribe for Shares to full time
                                 employees, executives or officers (including
                                 executive and non-executive directors) of the
                                 Company and its subsidiaries and any suppliers,
                                 consultants, agents or advisers as incentives
                                 and rewards for their contribution to the
                                 Group;

      "Shares"                   the shares of HK$0.01 each in the share capital
                                 of the Company existing on the date of this
                                 Agreement and all other (if any) stock or
                                 shares from time to time and for the time being
                                 ranking pari passu therewith and all other (if
                                 any) shares or stock resulting from any
                                 sub-division, consolidation or
                                 re-classification thereof;

      "Stock Exchange"           The Stock Exchange of Hong Kong Limited;

      "Takeovers Code"           the Hong Kong Code on Takeovers and Mergers;

      "Warranties"               the representations, warranties and
                                 undertakings of the Company contained in Clause
                                 5 and Schedule 3; and

      "HK$" and "cents"          Hong Kong dollars and cents, respectively.

1.2   Expressions defined in the Conditions shall, unless the context otherwise
      requires, have the same meanings where used herein.

1.3   The expression "Company" and "Subscriber" shall where the context permits
      include their respective successors and permitted assigns and any persons
      deriving title under them.

1.4   In this Agreement, unless the context requires otherwise, references to
      statutory provisions shall be construed as references to those provisions
      as replaced, amended, modified or re-enacted from time to time; words
      importing the singular include the plural and vice versa and words
      importing any gender or the neuter include both genders and the neuter;
      references to this Agreement or any issue document shall be construed as
      references to such document as the same may be amended or supplemented
      from time to time; unless otherwise stated, references to "Clauses" and
      the "Schedules" are to clauses of and schedules to this Agreement. Clause
      headings are inserted for reference only and shall be ignored in
      construing this Agreement.

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2.    SUBSCRIPTION FOR THE NOTE

2.1   Subject to fulfillment or waiver (as the case may be) of the Conditions
      Precedent, the Subscriber shall subscribe or procure the subscription by
      its nominee(s) of the Note at 100 per cent. of its face value and shall
      settle the subscription price at Completion in accordance with paragraph 2
      of Schedule 2.

2.2   Subject to fulfillment or waiver (as the case may be) of the Conditions
      Precedent, the Company shall at Completion issue the Note at its full face
      value to the Subscriber or such nominee(s) as the Subscriber may direct.

3.    CONDITIONS PRECEDENT

3.1   The obligations of the parties hereto to effect Completion shall be
      conditional upon:

      (a)   the Listing Committee of the Stock Exchange having granted (either
            unconditionally or subject only to conditions to which the Company
            and the Subscriber have no reasonable objection) listing of, and
            permission to deal in, the Conversion Shares;

      (b)   the passing of all necessary resolutions, on a poll where necessary,
            by the shareholders (being, where required by the Stock Exchange or
            the SFC, the independent shareholders) of the Company at general
            meeting to approve:

            (i)   the Company's entering into this Agreement and performance of
                  the transactions contemplated in this Agreement including the
                  issue of the Note and the issue and allotment of the
                  Conversion Shares in accordance with the Note; and

            (ii)  the grant of a waiver by the Executive in respect of the
                  obligation of the Subscriber and the parties acting in concert
                  with it (if any) to make a mandatory general offer for the
                  Shares not already owned or agreed to be acquired by the
                  Subscriber or any parties acting in concert with it (if any)
                  as a result of the issue and subscription of the Conversion
                  Shares upon exercise of the conversion rights under the Note
                  in accordance with note 1 of the "Notes on dispensations from
                  Rule 26" of the Takeovers Code (the "Whitewash Waiver");

      (c)   the Whitewash Waiver having been obtained and not having been
            revoked or amended and, where the Whitewash Waiver is subject to
            conditions, such conditions being reasonably acceptable to the
            Subscriber and, to the extent that any such conditions are required
            to be fulfilled before the Whitewash Waiver becomes effective, they
            are so fulfilled;

      (d)   if required, the Bermuda Monetary Authority having approved the
            issue of the Note and the Conversion Shares and the transferability
            of the Note and the Conversion Shares;

      (e)   all the conditions precedent (save and except such condition(s)
            precedent relating to the fulfillment of all the Conditions
            Precedent) under each of the Notes Subscription Agreements having
            been fulfilled or waived (as the case may be) in accordance with the
            provisions thereof;

      (f)   there being no event existing or having occurred and no condition
            being in existence which would be (after the issue of the Note) an
            event of default under Condition 10 of the Conditions and no event
            or act having occurred which, with the giving of notices, or the
            lapse or time, or both, would (after the issue of the Note),
            constitute such an event of default;

      (g)   the Warranties remaining true and accurate in all material respects
            and not misleading in any material respect;

      (h)   there being no occurrences of circumstances which, in the reasonable
            opinion of the Subscriber,

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            will have a material adverse effect on the financial condition,
            prospects, earning, business, undertaking or assets of the Group, in
            each case, taken as a whole, since the date of this Agreement; and

      (i)   all necessary approvals from the relevant governmental or regulatory
            authorities in Hong Kong, Bermuda and the United States required of
            either the Company or the Subscriber for the consummation of
            transactions contemplated in this Agreement having been obtained and
            all filings having been made and waiting periods having expired or
            been terminated.

3.2   The Company shall use its best endeavours to procure the fulfillment of
      all the Conditions Precedent as soon as practicable and in any event on or
      before the Long Stop Date (as defined in Clause 3.3). The Company shall
      forthwith notify the Subscriber by notice in writing upon the fulfillment
      of any of the Conditions Precedent and shall produce evidence in relation
      thereto to the Subscriber's reasonable satisfaction.

3.3   If the Conditions Precedent are not fulfilled (or, in respect of the
      Conditions Precedent set out in Clauses 3.1 (f), (g) and (h) above, waived
      by the Subscriber in its absolute discretion) on or before 31 March 2004
      (or such later date as may be agreed in writing between the Subscriber and
      the Company) ("Long Stop Date"), this Agreement (save and except Clauses
      3.4, 8 to 11) shall lapse and become null and void and the parties hereto
      shall be released from all obligations hereunder, save for any liability
      arising out of any antecedent breaches hereof.

3.4   For the avoidance of doubt, the parties hereby acknowledge that unless and
      until Completion shall have occurred in accordance with the terms hereof,
      none of Million Good's or the Subscriber's rights, claims, entitlements or
      benefits arising from the 2002 Convertible Note or the 2002 Subscription
      Agreement will be affected, prejudiced or diminished in any manner.

4.    COMPLETION

      Completion shall take place at the offices of the Company in Hong Kong (or
      at such other venue as the parties may agree) at or about 11:00 a.m. (Hong
      Kong time) on the Completion Date simultaneously with completion of the
      Notes Subscription Agreements, at which each party hereto shall perform or
      shall procure the performance of its obligations set out in Schedule 2.

5.    REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS BY THE COMPANY

5.1   The Company hereby represents, warrants and undertakes to the Subscriber
      that as at the date hereof and as at Completion, each of the statements in
      Schedule 3 remains true, correct and accurate.

5.2   The Company undertakes to notify the Subscriber forthwith on any matter or
      event coming to its attention prior to Completion which shows any of the
      Warranties to be or to have been untrue, misleading or inaccurate in any
      material respect.

5.3   The Company hereby agrees and acknowledges that the Subscriber is entering
      into this Agreement in reliance on the Warranties and is entitled to treat
      such representations and warranties as conditions of the Agreement.
      However, save and except as expressly stipulated in Clause 5 and Schedule
      3, the Subscriber hereby expressly acknowledges and agrees that the
      Company has not, and shall not be deemed to have, given any
      representations, warranties or undertakings in relation to any and all of
      the transactions contemplated in this Agreement and any and all such
      representations, warranties and undertakings are hereby expressly
      excluded.

5.4   The Company hereby undertakes to indemnify and keep indemnified the
      Subscriber against any damages, losses, costs, expenses (including legal
      costs and expenses) or other liabilities which it may suffer or incur as a
      result of or in connection with any breach of the Warranties or any of the
      Warranties being untrue or

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      misleading.

5.5   If the Company fails to perform any of its obligations (including its
      obligation at Completion) under this Agreement or breaches any material
      terms of the Warranties set out in this Agreement prior to Completion then
      without prejudice to all and any other rights and remedies available at
      any time to the Subscriber (including but not limited to the right to
      damages for any loss suffered) the Subscriber may, by notice either
      require the Company to perform such obligations or, insofar as the same is
      practicable, remedy such breach, or to the extent it relates to the
      failure of the Company to perform any of its material obligations on or
      prior to Completion treat the Company as having repudiated this Agreement
      and rescind the same. The rights conferred upon the Subscriber by the
      provisions of this Clause 5.5 are additional to and do not prejudice any
      other rights the Subscriber may have. Failure to exercise any of the
      rights herein conferred shall not constitute a waiver of any such rights.

5.6   The Company is deemed to have repeated all the Warranties on the basis
      that such Warranties will, at all times from the date of this Agreement up
      to and including the date on which all obligations (including payment
      obligations) of the Company under the Note and under this Agreement have
      been discharged in full, be true, complete and accurate in all respects
      (with respect to facts and circumstances at such time except as
      specifically provided otherwise) and such Warranties shall have effect as
      if given at each of such times as well as the date of this Agreement.

5.7   The Company further undertakes to and in favour of the Subscriber that, so
      long as the Note remains outstanding, it will not and will procure that no
      member of the Group will, without the prior written consent of the
      Subscriber (which consent may be subject to such conditions as the
      Subscriber sees fit to impose):

      (a)   consolidate or amalgamate with or merge into any other person, take
            any step with a view to dissolution, liquidation or winding-up or
            acquire all or a substantial part of the assets of any other person;

      (b)   except as expressly herein provided, sell, transfer, lease or
            otherwise dispose of the whole or any substantial part of its
            undertaking or its property or assets, whether by a single
            transaction or by a number of transactions whether related or not;

      (c)   lend any money or extend any credit, except in the ordinary course
            of its business, or make any investments that would have a material
            adverse effect on its financial condition or significantly change
            the character of its business;

      (d)   except for indebtedness incurred pursuant to this Agreement and the
            Notes Subscription Agreements or indebtedness incurred in the
            ordinary course of the Group's business and not material in amount,
            incur or create any indebtedness or give any guarantee or indemnity
            or act as surety in respect of any indebtedness of any other person;
            or

      (e)   create or permit to exist any encumbrance over all or any of its
            present or future undertaking or property or its present or future
            revenues or assets.

6.    REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS BY THE SUBSCRIBER

6.1   The Subscriber hereby represents, warrants and undertakes that as at the
      date hereof and as at Completion:

      (a)   the information set out in Recital (E) is true and correct in all
            respects with respect to the facts as prevailing as at the date
            hereof;

      (b)   it is duly incorporated and validly existing under the laws of its
            place of incorporation and has the authority to enter into and
            perform this Agreement and that in entering into this Agreement and
            in performing its obligations hereunder (including the holding of
            the Note and the exercising of its rights thereunder) it does not
            and shall not do so in breach of any applicable legislation; and

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      (c)   this Agreement constitutes valid, binding and enforceable
            obligations of the Subscriber.

6.2   The Subscriber hereby agrees and acknowledges that the Company is entering
      into this Agreement in reliance on the representations and warranties made
      by it under Clause 6.1. However, save and except as expressly stipulated
      in Clause 6.1, the Company hereby expressly acknowledges and agrees that
      the Subscriber has not, and shall not be deemed to have, given any
      representations, warranties or undertakings in relation to any and all of
      the transactions contemplated in this Agreement and any and all such
      representations, warranties and undertakings are hereby expressly
      excluded.

7.    NOTICES

      Any notice required or permitted to be given by or under this Agreement
      shall be in writing and if to the Company or the Subscriber shall be given
      by delivering it to its address or facsimile number shown below:

      If to the Company to:
            7th Floor, Paul Y. Centre, 51 Hung To Road, Kwun Tong, Kowloon, Hong
            Kong
            Facsimile : (852) 2542 0298
            Attention : Board of Directors

            If to the Subscriber to:
            8th Floor, Paul Y. Centre, 51 Hung To Road, Kwun Tong, Kowloon, Hong
            Kong
            Facsimile : (852) 2810 6982
            Attention : Board of Directors

      or to such other address or facsimile number as the party concerned may
      have notified to the other parties pursuant to this Clause and may be
      given by sending it by registered post or by hand to such address or by
      facsimile transmission to such facsimile number, or to such other address
      or facsimile number as the party concerned may have notified to the other
      parties in accordance with this Clause. Such notice shall be deemed to be
      served on the day of delivery or facsimile transmission (or, if the day of
      delivery or transmission is not a Business Day or if the delivery or
      transmission is made after 5:00 pm Hong Kong time, it will deem to be
      served on the immediately following Business Day), or in the case of
      registered post 48 hours after posting, or if sooner upon acknowledgement
      of receipt by or on behalf of the party to which it is addressed.

8.    COSTS AND EXPENSES

      Each party shall bear its own costs and expenses (if any) incurred by it
      in connection with the preparation, negotiation and settlement of this
      Agreement. Capital fees, stamp duty and all other fees and duties (if any)
      relating to the issue and delivery of the Note, fulfillment of the
      Conditions Precedent, allotment and issue of the Conversion Shares shall
      be borne by the Company.

9.    GENERAL PROVISIONS RELATING TO AGREEMENT

9.1   Time shall be of the essence of this Agreement.

9.2   This Agreement shall be binding on and ensure for the benefit of the
      successors of each of the parties and (subject to the other provisions of
      this Agreement and the Conditions) permitted assigns provided that the
      benefits and obligations or any part thereof bestowed upon each party to
      this Agreement shall not be capable of being assigned, transferred,
      encumbered or otherwise disposed of save and except any assignment,
      transfer, encumbrance or disposal thereof in connection with a transfer of
      the Note by the holder in accordance with the Conditions.

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9.3   The exercise of or failure to exercise any right or remedy in respect of
      any breach of this Agreement shall not, save as provided herein,
      constitute a waiver by such party of any other right or remedy it may have
      in respect of that breach.

9.4   Any right or remedy conferred by this Agreement on either party for breach
      of this Agreement (including without limitation the breach of any
      representations and warranties) shall be in addition and without prejudice
      to all other rights and remedies available to it in respect of that
      breach.

9.5   Any provision of this Agreement which is capable of being performed after
      Completion but which has not been performed on or before Completion and
      all Warranties contained in or entered into pursuant to this Agreement
      shall remain in full force and effect notwithstanding Completion.

9.6   This Agreement (together with the other documents referred to herein
      including, without limitation, the Note) constitutes the entire agreement
      between the parties with respect to its subject matter (neither party
      having relied on any representation or warranty made by the other parties
      which is not contained in this Agreement) and no variation of this
      Agreement shall be effective unless made in writing and signed by all the
      parties.

9.7   Save and except in respect of the 2002 Subscription Agreement and 2002
      Convertible Note which shall continue to have full force and effect until
      Completion shall have occurred and without prejudice to Clause 3.4 which
      shall survive any termination of this Agreement pursuant to Clause 3.3,
      this Agreement supersedes all and any previous agreements, arrangements or
      understandings between the parties relating to the matters referred to in
      this Agreement and all such previous agreements, understanding or
      arrangements (if any) shall cease and determine with effect from the date
      hereof.

9.8   If at any time any provision of this Agreement is or becomes illegal, void
      or unenforceable in any respect, the remaining provisions hereof shall in
      no way be affected or impaired thereby.

9.9   The terms of this Agreement and the Note shall remain valid and
      enforceable notwithstanding the issue and redemption or conversion of the
      Note to the extent that any of the terms in this Agreement or the Note has
      not been fully and properly performed or satisfied.

9.10  Subject to the requirements of the Stock Exchange and the SFC, and save
      for the Announcement, neither party hereto shall make any press or other
      announcements relating to this Agreement and the Note without the consent
      of the other party as to the form and manner of such announcement (such
      consent not to be unreasonably withheld). Any announcement or supply of
      information by either party required to be made pursuant to the
      requirements of the Stock Exchange or the SFC shall be issued or released
      only after such prior consultation with the other party as is reasonably
      practicable in the circumstances.

9.11  The parties agree that they shall treat as strictly confidential all
      information received or obtained by it or its employees or advisers as a
      result of entering into or performing this Agreement and the Note
      including information relating to the provisions of this Agreement and the
      Note and the negotiations leading up to this Agreement and the Note, the
      subject matter thereof and, subject to Clause 9.10, it will not at any
      time hereafter make use of or disclose or divulge to any person any such
      information and shall use its best endeavours to prevent the publication
      or disclosure of any such information.

9.12  Each of the parties agrees to do and execute or procure to be done and
      executed all such further acts, deeds, documents and things as may be
      reasonable and appropriate for such party to do or execute or procure to
      be done in order to give full effect to the terms of this Agreement.

10.   COUNTERPARTS

      This Agreement may be executed by the parties hereto in any number of
      counterparts and on separate counterparts, each of which when so executed
      shall be deemed an original but all of which shall constitute one and the
      same instrument and be binding on all parties.

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11.   GOVERNING LAW AND JURISDICTION

      This Agreement is governed by and shall be construed in accordance with
      the laws of Hong Kong.

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                                   SCHEDULE 1

                                   CERTIFICATE

                                                             Certificate No. [ ]

                        WING ON TRAVEL (HOLDINGS) LIMITED
                (Incorporated in Bermuda with limited liability)

                     TWO PER CENT. CONVERTIBLE NOTE DUE 2007

Issued pursuant to the memorandum of association and bye-laws of Wing On Travel
(Holdings) Limited (the "COMPANY") and a resolution of its board of directors
passed on [ ] 200[4] [and a resolution of the shareholders of the Company passed
on [ ] 2004].

THIS IS TO CERTIFY that [*] whose registered office is situated at [*] is the
registered holder ("NOTEHOLDER") of the above-mentioned Convertible Note
("NOTE"). The Noteholder is entitled to require the Company to convert the whole
or any part(s) of the principal amount outstanding under this Note into ordinary
shares in the capital of the Company subject to and in accordance with the terms
and conditions attached hereto which shall form an integral part of this
Certificate ("CONDITIONS").

Subject to the foregoing, the Company, for value received, promises to redeem
the Note and pay the principal sum of HK$155,000,000.00 to the Noteholder in
accordance with the Conditions.

The Company shall pay interest on the principal amount of the Note in accordance
with the Conditions.

GIVEN under the Seal of WING ON TRAVEL (HOLDINGS) LIMITED on [-], 2004.

---------------------------------
Director

---------------------------------
Secretary/Director

Note:

This Note cannot be transferred to bearer on delivery and is transferable only
to the extent permitted by Condition 2 of the Conditions. This Note must be
delivered to the Secretary of Wing On Travel (Holdings) Limited for cancellation
and reissue of an appropriate certificate in the event of any such transfer.

<PAGE>

(For endorsement in the event of partial conversion)

Date                    Amount Converted                      Amount Outstanding

<PAGE>

                              TERMS AND CONDITIONS

This Note is in the principal amount of HK$155,000,000.00 and is issued by and
convertible into shares of Wing On Travel (Holdings) Limited (the "COMPANY").
This Note shall be held subject to and with the benefit of the terms and
conditions set out below. Terms defined in the agreement in respect of the issue
of convertible note dated [*] between Wing On Travel (Holdings) Limited and [ ]
shall bear the same meanings in this Note. In addition, the words and
expressions set out below shall have the meanings attributed to them below
unless the context otherwise require:

"ADJUSTMENT"                  any adjustment which may be made to the Conversion
                              Price pursuant to Condition 7;

"BUSINESS DAY"                a day (except Saturday) on which banks in Hong
                              Kong are open for business for more than four
                              hours;

"CCASS"                       the Central Clearing and Settlement System
                              operated by Hong Kong Securities Clearing Company
                              Limited;

"CLOSING PRICE PER SHARE"     the closing price per Share for one or more
                              board lots of the Shares quoted on the daily
                              quotation list of the Stock Exchange, or, if the
                              Stock Exchange begins to operate on an extended
                              hours basis and does not designate the closing
                              price, then the last trade price of the Shares
                              prior to 4:00 p.m. (Hong Kong time). If such
                              closing price cannot be calculated for the Shares
                              on a particular date on the foregoing bases, the
                              closing price per Share on such date shall be the
                              fair market value as mutually determined by the
                              Company and the Noteholder. If the Company and the
                              Noteholder are unable to agree upon the fair
                              market value of the Shares, then it shall be as
                              determined in good faith by an approved merchant
                              bank (as defined in Condition 7.2);

"CONDITIONS"                  the terms and conditions attached to or
                              endorsed on this Note and "CONDITION" refers to
                              the relative numbered paragraph of the Conditions;

"CONVERSION PRICE"            the price of HK$0.02 per Share, subject to the
                              Adjustment;

"CONVERSION RIGHTS"           the rights attached to this Note to convert the
                              whole or any part(s) of the principal amount into
                              Shares;

"CONVERSION SHARES"           the Shares to be issued by the Company under
                              this Note (whether upon exercise by the Noteholder
                              of the Conversion Rights, or otherwise pursuant to
                              the Conditions);

"EVENTS OF DEFAULT"           shall have the meaning ascribed thereto in
                              Condition 10;

"EXERCISE DATE"               a date on which a notice is given pursuant to
                              Condition 8.1 in respect of the exercise of the
                              Conversion Rights in accordance with the
                              Conditions;

<PAGE>

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

"LISTING RULES"               the Rules Governing the Listing of Securities
                              on the Stock Exchange;

"MATURITY DATE"               has the meaning ascribed thereto in Condition
                              1;

"MONTH"                       is a reference to a period starting on one day
                              in a calendar month and ending on the numerically
                              corresponding day in the next succeeding calendar
                              month provided that if there is no numerically
                              corresponding day in the month in which that
                              period ends, that period shall end on the last day
                              in that later month;

"NOTEHOLDER"                  the person who is for the time being the
                              registered holder of this Note;

"OTHER CONVERTIBLE NOTES"     the five convertible notes in the principal
                              amounts of HK$15,000,000.00, HK$105,000,000.00,
                              HK$20,000,000.00, HK$5,000,000.00 and
                              HK$50,000,000.00 respectively issued by the
                              Company pursuant to the Notes Subscription
                              Agreements;

"SHARES"                      the shares of HK$0.01 each in the share capital
                              of the Company existing on the issue date of this
                              Note and all other (if any) stock or shares from
                              time to time and for the time being ranking pari
                              passu therewith and all other (if any) shares or
                              stock resulting from any sub-division,
                              consolidation or re-classification thereof;

"STOCK EXCHANGE"              The Stock Exchange of Hong Kong Limited;

"SUBSCRIPTION AGREEMENT"      the agreement dated [January 13, 2004] between
                              [China Enterprises Limited] and the Company in
                              respect of the issue of this Note;

"TRADING DAY"                 a day on which the Shares are traded on the
                              Stock Exchange for a minimum of 3 hours and an
                              official closing price per Share is provided by
                              the Stock Exchange; and

"HK$" and "CENTS"             Hong Kong dollars and cents, respectively.

The expressions "COMPANY" and "NOTEHOLDER" shall where the context permits
include their respective successors and permitted assigns and any persons
deriving title under them.

<PAGE>

In this Note, unless the context requires otherwise:

(a)   references to statutory provisions shall be construed as references to
      those provisions as replaced, amended, modified or re-enacted form time to
      time;

(b)   words importing the singular include the plural and vice versa;

(c)   words importing any gender or the neuter include both genders and the
      neuter;

(d)   references to this Note or any issue document shall be construed as
      references to such document as the same may be amended or supplemented
      from time to time; and

(e)   Condition headings are inserted for reference only and shall be ignored in
      construing this Note.

1.    Maturity

      Subject as provided herein, the Company shall repay the outstanding
      principal amount of this Note (together with all unpaid interests accrued
      thereon up to and including the date of actual repayment) subject to and
      in accordance with the Conditions on the third anniversary of the issue
      date of this Note (the "MATURITY DATE").

2.    Status and Transfer

      2.1   The obligations of the Company arising under this Note constitute
            general, unconditional, unsecured, unsubordinated obligations of the
            Company and rank, and shall rank equally among themselves and pari
            passu with all other present and future unsecured and unsubordinated
            obligations of the Company except for obligations accorded
            preference by mandatory provisions of applicable law. No application
            shall be made for a listing of this Note.

      2.2   This Note or any part(s) thereof may be assigned or transferred to
            any third party which is not a connected person (as that term is
            defined in the Listing Rules) of the Company, subject only to
            compliance of the conditions hereunder and further subject to the
            conditions, approvals, requirements and any other provisions of or
            under:

            (a)   the Stock Exchange (and any other stock exchange on which the
                  Shares may be listed at the relevant time) or their rules and
                  regulations;

            (b)   the approval for listing in respect of the Conversion Shares;
                  and

            (c)   all applicable laws and regulations.

      2.3   Any assignment or transfer of this Note shall be in respect of the
            whole or any part(s) of the outstanding principal amount of this
            Note. The Company shall facilitate any such assignment or transfer,
            including making any necessary applications to the Stock Exchange
            for approval.

<PAGE>

      2.4   Notwithstanding any other provisions of this Condition 2, this Note
            or any part(s) thereof shall not be transferred to any company or
            other person which is a connected person (as defined in the Listing
            Rules) of the Company.

      2.5   In relation to any assignment or transfer of this Note permitted
            under or otherwise pursuant to this Condition 2:

            (a)   this Note or any part(s) thereof may only be transferred by
                  execution of a form of transfer (the "Transfer Form") in the
                  form annexed to the Conditions by the transferor and the
                  transferee (or their duly authorized representatives). In this
                  Condition, "transferor" shall, where the context permits or
                  requires, include joint transferors or can be construed
                  accordingly;

            (b)   this Note must be delivered to the Company accompanied by:

                  (i)   a duly executed Transfer Form;

                  (ii)  in the case of the execution of the Transfer Form on
                        behalf of a corporation by its officers, the authority
                        of that person or those persons to do so;

                  and the Company shall, within two (2) Business Days of receipt
                  of such documents from the Noteholder, cancel the existing
                  certificate for this Note and issue a new certificate for this
                  Note or any part(s) thereof under seal of the Company in
                  respect of the whole or such part(s) of the principal amount
                  of this Note so transferred, in favour of the transferee or
                  assignee as applicable and (if appropriate) issue to the
                  Noteholder a new certificate for such part of this Note under
                  seal of the Company in respect of any balance thereof retained
                  by the Noteholder; and

                  the Company shall maintain outside Hong Kong and give a full
                  and complete register of the Noteholders, the conversion,
                  cancellation and destruction of this Note, any replacement
                  certificate issued in substitution for any defaced, lost,
                  stolen or destroyed certificate and of details of all
                  Noteholders from time to time.

      2.6   Any reasonable legal and other costs and expenses which may be
            properly incurred by the Company in connection with any transfer or
            assignment of this Note or any part(s) thereof or any request
            therefor shall be borne by the Noteholder.

3.    Interest

      3.1   Interest is payable on this Note at the rate of 2% per annum on the
            principal amount of this Note outstanding from time to time accruing
            from the date of issue of this Note on a daily basis and shall be
            calculated on the basis of the actual number of days elapsed in a
            year of 365 days,

<PAGE>

            including the first day of the period during which it accrues and
            including the last. The interest will, subject as provided herein,
            be payable by the Company once every six months in arrears at the
            end of each six-month period between the date of issue of this Note
            and the Maturity Date. The first payment shall be made on the date
            falling six months after the date of issue of this Note.

      3.2   In the event that the Noteholder has converted the whole or any
            part(s) of the principal amount of this Note and upon delivery to
            the Company of the Certificate for this Note, the Noteholder shall
            be entitled to interest in respect of the whole or such part(s) of
            the principal being converted for the period from the immediately
            preceding interest payment date (or the date of issue of this Note,
            as the case may be) up to and including the Exercise Date.

4.    Payments

      4.1   All payments by the Company hereunder shall be made in immediately
            available funds free and clear of any withholdings or deductions for
            any present or future taxes, imposts, levies, duties or other
            charges payable by the Company. In the event that the Company is
            required by law to make any such deduction or withholding from any
            amount paid, the Company shall pay to the Noteholder such additional
            amount as shall be necessary so that the Noteholder continues to
            receive a net amount equal to the full amount which it would have
            received if such withholding or deduction had not been made.

      4.2   All payments by the Company hereunder shall be made, not later than
            11:00 a.m. (Hong Kong time) on the due date, by remittance to such
            bank account in Hong Kong as the Noteholder may notify the Company
            from time to time.

      4.3   If the due date for payment of any amount in respect of this Note is
            not a Business Day, the Noteholder shall be entitled to payment on
            the next following Business Day in the same manner together with
            interest accrued in respect of any such delay.

      4.4   The Company shall not be obliged to make any payment on the
            redemption of the outstanding principal amount of this Note until it
            has received the certificate for this Note.

      4.5   If the Company defaults in the payment of any sum due and payable
            under this Note, the Company shall pay interest on such sum to the
            Noteholder from the due date to the date of actual payment in full
            (both before and after judgment) calculated at the rate of 5% per
            annum.

5.    Redemption

      Unless previously converted in accordance with these Conditions, upon
      presentation on the Maturity Date of the original of the certificate for
      this Note to the Company at its address specified in Condition 15, this
      Note will be redeemed by the Company at its principal amount outstanding
      together with accrued interest thereon up to and including the Maturity
      Date in Hong Kong Dollars as provided in Condition 3.1.

<PAGE>

6.    Conversion

      6.1   Subject to receipt by the Company of the documents referred to in
            Condition 8.1, the Noteholder shall have the right to convert on any
            Business Day on or prior to the Maturity Date, the whole or any
            part(s) of the principal amount of this Note into Shares at any time
            and from time to time at the Conversion Price provided that such
            part of the principal amount of this Note to be converted shall not
            be less than HK$250,000.00 at any one time, so that the number of
            Shares which fall to be issued (subject to Condition 6.2) shall be
            calculated by applying the formula : -

                  n = x/y

            where n = number of Conversion Shares to be issued

                  x = the whole or such part(s) of the principal amount of this
                      Note; and

                  y = the Conversion Price applicable on the Exercise Date.

            The Conversion Shares shall be allotted and issued in the name of
            the Noteholder or such entity as it may so direct pursuant to such
            conversion and shall be delivered to the Noteholder within two (2)
            Business Days after the date of presentation of the original
            certificate for this Note.

      6.2   No fraction of a Share shall be issued on conversion of this Note
            but (except in cases where any such cash entitlement would amount to
            less than HK$10.00) a cash payment will be made to the Noteholder in
            respect of such fraction. Shares issued upon conversion pursuant to
            Condition 6.1 shall rank pari passu in all respects with all other
            existing Shares outstanding at the Exercise Date and be entitled to
            all dividends and other distributions the record date of which falls
            on a date on or after the date of the conversion notice.

7     Adjustments

      7.1   Subject as hereinafter provided and save and except for cases where
            the Company shall issue the Other Convertible Notes and/or any
            Shares upon the exercise of any conversion rights attaching thereto,
            the Conversion Price shall from time to time be adjusted in
            accordance with the following relevant provisions and so that if the
            event giving rise to any such adjustment shall be such as would be
            capable of falling within more than one of sub-paragraphs (a) to (i)
            inclusive of this Condition 7.1, it shall fall within the first of
            the applicable paragraphs to the exclusion of the remaining
            paragraphs:

            (a)   If and whenever the Shares by reason of any consolidation or
                  sub-division become of a different nominal amount, the
                  Conversion Price in force immediately prior thereto shall be
                  adjusted by multiplying it by the following fraction:

                         A/B

<PAGE>

            where:

            A = the revised nominal amount; and

            B = the former nominal amount.

            Each such adjustment shall be effective from the close of business
            in Hong Kong on the day immediately preceding the date on which the
            consolidation or sub-division becomes effective.

      (b)   If and whenever the Company shall issue (other than in lieu of a
            cash dividend) any Shares credited as fully paid by way of
            capitalization of profits or reserves (including any share premium
            account or capital redemption reserve fund), the Conversion Price in
            force immediately prior to such issue shall be adjusted by
            multiplying it by the following fraction:

                         C/C + D

            where:

            C = the aggregate nominal amount of the issued Shares immediately
                before such issue; and

            D = the aggregate nominal amount of the Shares issued in such
                capitalization.

            Each such adjustment shall be effective (if appropriate
            retroactively) from the commencement of the day next following the
            record date for such issue.

      (c)   If and whenever the Company shall make any Capital Distribution (as
            defined in Condition 7.2) (except where, and to the extent that, the
            Conversion Price falls to be adjusted under sub-paragraph (b) above)
            to holders (in their capacity as such) of Shares (whether on a
            reduction of capital or otherwise) or shall grant to such holders
            rights to acquire for cash assets of the Company or any of its
            subsidiaries, the Conversion Price in force immediately prior to
            such distribution or grant shall be adjusted by multiplying it by
            the following fraction:

                         E - F/E

            where:

            E     = the market price (as defined in Condition 7.2) on the date
                  on which the Capital Distribution or, as the case may be, the
                  grant is publicly announced or (failing any such announcement)
                  next preceding the date of the Capital Distribution or, as the
                  case may be,

<PAGE>

            of the grant; and

            F     = the fair market value on the day of such announcement or (as
                  the case may require) the next preceding day, as determined in
                  good faith by an approved merchant bank, of the portion of the
                  Capital Distribution or of such rights which is attributable
                  to one Share;

            Provided that:

            (i)   if in the opinion of the relevant approved merchant bank, the
                  use of the fair market value as aforesaid produces a result
                  which is significantly inequitable, it may instead determine,
                  and in such event the above formula shall be construed as if F
                  meant the amount of the said market price which should
                  properly be attributed to the value of the Capital
                  Distribution or rights; and

            (ii)  the provisions of this sub-paragraph (c) shall not apply in
                  relation to the issue of Shares paid out of profits or
                  reserves and issued in lieu of a cash dividend.

            Each such adjustment shall be effective (if appropriate
            retroactively) from the commencement of the day next following the
            record date for the Capital Distribution or grant.

      (d)   If and whenever the Company shall after the date hereof offer to
            holders of Shares new Shares for subscription by way of rights, or
            shall grant to holders of Shares any options, warrants or other
            rights to subscribe for or purchase any Shares, the Conversion Price
            shall be adjusted by multiplying the Conversion Price in force
            immediately before the date of the announcement of such offer by the
            following fraction:
                                        G + H x I/J/G + H

            where:

            G     = the number of Shares in issue immediately before the date of
                    such announcement;

            H     = the aggregate number of Shares so offered for subscription;

            I     = the amount (if any) payable for the rights, options or
                    warrants or other rights to subscribe for each new Share,
                    plus the subscription price payable for each new Share; and

            J     = the greater of either the closing price per Share on the
                    trading day immediately prior to such announcement or the
                    Conversion Price in effect immediately prior to the trading
                    day immediately prior to such announcement.

            Such adjustment shall become effective (if appropriate
            retroactively) from the commencement
<PAGE>
        of the day next following the record date for the offer.

  (e)   (i) If and whenever the Company shall issue wholly for cash any
            securities which by their terms are convertible into or exchangeable
            for or carry rights of subscription for new Shares, and the Total
            Effective Consideration per Share (as defined below in this
            sub-paragraph (e)) initially receivable for such securities is less
            than the greater of either the closing price per Share at the date
            of the announcement of the terms of issue of such securities or the
            Conversion Price in effect immediately prior to the date of the
            announcement of the terms of issue of such securities (for the
            purpose of this section (i), the "Applicable Price"), the Conversion
            Price shall be adjusted by multiplying the Conversion Price in force
            immediately prior to the issue by a fraction of which the numerator
            is the number of Shares in issue immediately before the date of the
            issue plus the number of Shares which the Total Effective
            Consideration receivable for the securities issued would purchase at
            the Applicable Price and the denominator is the number of Shares in
            issue immediately before the date of the issue plus the number of
            Shares to be issued upon conversion or exchange of, or the exercise
            of the subscription rights conferred by, such securities, at the
            initial conversion or exchange rate or subscription price. Such
            adjustment shall become effective (if appropriate retrospectively)
            from the close of business in Hong Kong on the Business Day next
            preceding whichever is the earlier of the date on which the issue is
            announced and the date on which the Company determines the
            conversion or exchange rate or subscription price.

      (ii)  If and whenever the rights of conversion or exchange or subscription
            attached to any such securities as are mentioned in section (i) of
            this sub-paragraph (e) are modified so that the Total Effective
            Consideration (as defined below in this sub-paragraph (e)) per Share
            initially receivable for such securities shall be less than the
            greater of either the closing price per Share at the date of
            announcement of the proposal to modify such rights of conversion or
            exchange or subscription or the Conversion Price in effect
            immediately prior to the date of announcement of the proposal to
            modify such rights of conversion or exchange or subscription (for
            the purpose of this section (ii), the "Applicable Price"), the
            Conversion Price shall be adjusted by multiplying the Conversion
            Price in force immediately prior to such modification by a fraction
            of which the numerator is the number of Shares in issue immediately
            before the date of such modification plus the number of Shares which
            the Total Effective Consideration receivable for the securities
            issued at the modified conversion price would purchase at the
            Applicable Price and of which the denominator is the number of
            Shares in issue immediately before such date of modification plus
            the number of Shares to be issued upon conversion of or the exercise
            of the subscription rights conferred by such securities at the
            modified conversion or exchange rate or subscription price, such
            adjustment shall take effect as at the date upon which such
            modification takes effect. A right of conversion or subscription
            shall not be treated as modified for the foregoing purposes where it
            is adjusted to take account of rights or capitalization issues and
            other

<PAGE>

                  events normally giving rise to adjustment of conversion or
                  exchange terms.

            For the purposes of this sub-paragraph (e), the "Total Effective
            Consideration" receivable for the securities issued shall be deemed
            to be the consideration receivable by the Company for any such
            securities plus the additional minimum consideration (if any) to be
            received by the Company upon (and assuming) the conversion or
            exchange thereof or the exercise of such subscription rights, and
            the Total Effective Consideration per Share initially receivable for
            such securities shall be such aggregate consideration divided by the
            number of Shares to be issued upon (and assuming) such conversion or
            exchange at the initial conversion or exchange rate or the exercise
            of such subscription rights at the initial subscription price, in
            each case without any deduction for any commissions, discounts or
            expenses paid, allowed or incurred in connection with the issue.

      (f)   If and whenever the Company shall issue wholly for cash any Shares
            at a price per Share which is less than the greater of either the
            closing price per Share at the date of the announcement of the terms
            of such issue or the Conversion Price in effect immediately prior to
            the date of the announcement of the terms of such issue (for the
            purpose of this sub-paragraph (f), the "Applicable Price"), the
            Conversion Price shall be adjusted by multiplying the Conversion
            Price in force immediately before the date of such announcement by a
            fraction of which the numerator is the number of Shares in issue
            immediately before the date of such announcement plus the number of
            Shares which the aggregate amount payable for the issue would
            purchase at the Applicable Price and the denominator is the number
            of Shares in issue immediately before the date of such announcement
            plus the number of Shares so issued. Such adjustment shall become
            effective on the date of the issue.

      (g)   If and whenever the Company shall issue Shares for the acquisition
            of assets at a Total Effective Consideration per Share (as defined
            below in this sub-paragraph (g)) which is less than the greater of
            either the closing price per Share at the date of the announcement
            of the terms of such issue or the Conversion Price in effect
            immediately prior to the date of the announcement of the terms of
            such issue, the Conversion Price shall be adjusted in such manner as
            may be determined by an approved merchant bank , such adjustment to
            become effective on the date of issue. For the purposes of this
            sub-paragraph (g), "Total Effective Consideration" shall be the
            aggregate consideration credited as being paid for such Shares by
            the Company on acquisition of the relevant asset without any
            deduction of any commissions, discounts or expenses paid, allowed or
            incurred in connection with the issue thereof, and the "Total
            Effective Consideration per Share" shall be the Total Effective
            Consideration divided by the number of Shares issued as aforesaid.

      (h)   If and whenever the average closing price per Share for the 20
            consecutive trading days immediately preceding [ ] (being the date
            falling on the first anniversary of the date of issue of the Notes
            by the Company) is lower than the Conversion Price (the "First
            Average Price"), the Conversion Price shall be adjusted to the First
            Average Price, provided that the

<PAGE>

            First Average Price shall not fall below HK$0.015. For the avoidance
            of doubt, if the First Average Price falls below HK$0.015, the
            Conversion Price shall be adjusted to HK$0.015. Such adjustment
            shall become effective on the first anniversary of the date of issue
            of the Notes by the Company. If and whenever the Shares by reason of
            any consolidation or sub-division become of a different nominal
            amount than HK$0.01 each, the floor First Average Price of HK$0.015
            stated above shall be adjusted in the same manner as provided in
            Clause 7.1(a) substituting the Conversion Price used therein by the
            floor First Average Price.

      (i)   If and whenever the average closing price per Share for the 20
            consecutive trading days immediately preceding [ ] (being the date
            falling on the second anniversary of the date of issue of the Notes
            by the Company) is lower than the Conversion Price (the "Second
            Average Price"), the Conversion Price shall be adjusted to the
            Second Average Price, provided that the Second Average Price shall
            not fall below HK$0.015. For the avoidance of doubt, if the Second
            Average Price falls below HK$0.015, the Conversion Price shall be
            adjusted to HK$0.015. Such adjustment shall become effective on the
            second anniversary of the date of issue of the Notes by the Company.
            If and whenever the Shares by reason of any consolidation or
            sub-division become of a different nominal amount than HK$0.01 each,
            the floor Second Average Price of HK$0.015 stated above shall be
            adjusted in the same manner as provided in Clause 7.1(a)
            substituting the Conversion Price used therein by the floor Second
            Average Price.

      (j)   If the Company or the Noteholder determines that an adjustment
            should be made to the Conversion Price as a result of one or more
            events or circumstances (whether or not referred to in
            sub-paragraphs (a) to (i) above) (even if the relevant event or
            circumstance is specifically excluded in the Conditions from the
            operation of sub-paragraphs (a) to (i) above), or that an adjustment
            should not be made (even if the relevant or circumstance is
            specifically provided for in sub-paragraphs (a) to (i) above), or
            that the effective date for the relevant adjustment should be a date
            other than that mentioned in sub-paragraphs (a) to (i) above, the
            Company or the Noteholder may, at the expense of the Company,
            request the approved merchant bank, acting as expert, to determine
            as soon as practicable (i) what adjustment (if any) to the
            Conversion Price is fair and reasonable to take account thereto and
            is appropriate to give the result which the approved merchant bank
            considers in good faith to reflect the intentions of the provisions
            of this Condition 7; and (ii) the date on which such adjustment
            should take effect; and upon such determination such adjustment (if
            any) shall be made and shall take effect in accordance with such
            determination, provided that an adjustment shall only be made
            pursuant to this sub-paragraph (h) if the approved merchant bank is
            so requested to make such a determination.

7.2   For the purposes of this Condition 7:

      "announcement" shall include the release of an announcement to the press
      or the delivery or transmission by telephone, telex or otherwise of an
      announcement to the Stock Exchange and "date

<PAGE>

      of announcement" shall mean the date on which the announcement is first so
      released, delivered or transmitted;

      "approved merchant bank" means a merchant bank of repute in Hong Kong
      selected by the Company and approved by the Noteholder for the purpose of
      providing a specific opinion or calculation or determination hereunder or
      such merchant bank as may be appointed by the President for the time being
      of The Law Society of Hong Kong upon the request of either the Company or
      the Noteholder;

      "Capital Distribution" shall (without prejudice to the generality of that
      phrase) include distributions in cash or specie. Any dividend charged or
      provided for in the accounts for any financial period shall (whenever paid
      and however described) be deemed to be a Capital Distribution provided
      that any such dividend shall not automatically be so deemed if it is paid
      out of the aggregate of the net profits (less losses) attributable to the
      holders of Shares for all financial periods after 31 December 2002 as
      shown in the audited consolidated profit and loss account of the Company
      and its subsidiaries for each financial period ended 31 December;

      "issue" shall include allot;

      "market price" mean the average of the closing price per Share for each of
      the last twenty (20) Stock Exchange trading days on which dealings in the
      Shares on the Stock Exchange took place ending on such trading day last
      preceding the day on or as of which the market price is to be ascertained;

      "reserves" includes unappropriated profits; and

      "rights" includes rights in whatsoever form issued.

7.3   The provisions of sub-paragraphs (b), (c), (d), (e) and (f) of Condition
      7.1 shall not apply to:

      (a)   an issue of fully paid Shares upon the exercise of any conversion
            rights attached to securities convertible into Shares or upon
            exercise of any rights (including any conversion of this Note) to
            acquire Shares (except a rights issue) provided that an adjustment
            (if required) has been made under this Condition 7 in respect of the
            issue of such securities or granting of such rights (as the case may
            be);

      (b)   an issue of fully-paid Shares by way of capitalization of all or
            part of any subscription right reserve, or any similar reserve which
            has been or may be established pursuant to the terms of any
            securities wholly or partly convertible into, or rights to acquire,
            Shares; or

      (c)   an issue of Shares pursuant to a scrip dividend scheme where an
            amount not less than the nominal amount of the Shares so issued is
            capitalised and the market value of such Shares is not more than 110
            per cent. of the amount of dividend which holders of the Shares
            could elect to or would otherwise receive in cash, for which purpose
            the "market value" of a Share

<PAGE>

            shall mean the average of the closing prices such Stock Exchange
            dealing days on which dealings in the Shares took place (being not
            less than twenty (20) such days) as are selected by the directors of
            the Company in connection with determining the basis of allotment in
            respect of the relevant scrip dividend and which fall within the
            period of one month ending on the last day on which holders of
            Shares may elect to receive or (as the case may be) not to receive
            the relevant dividend in cash.

7.4   Any adjustment to the Conversion Price shall be made to the nearest
      one-hundredth of a cent so that any amount under 0.005 cent shall be
      rounded down and any amount of 0.005 cent or more shall be rounded up.

7.5   Notwithstanding anything contained herein, no adjustment shall be made to
      the Conversion Price in any case in which the amount by which the same
      would be reduced in accordance with the foregoing provisions of this
      Condition would be less than one-hundredth of a cent and any adjustment
      that would otherwise be required then to be made shall not be carried
      forward.

7.6   If the Company or any subsidiary of the Company shall in any way modify
      the rights attached to any share or loan capital so as wholly or partly to
      convert or make convertible such share or loan capital into, or attach
      thereto any rights to acquire, Shares, the Company shall appoint an
      approved merchant bank to consider whether any adjustment to the
      Conversion Price is appropriate (and if such approved merchant bank shall
      certify that any such adjustment is appropriate, the Conversion Price
      shall be adjusted accordingly and the provisions of Conditions 7.4, 7.5,
      7.7, 7.8, 7.9, 7.10 and 7.11 shall apply).

7.7   Whenever the Conversion Price is adjusted as herein provided the Company
      shall as soon as possible but not later than two Business Days after the
      relevant adjustment has been determined give notice of the same to the
      Noteholder (setting forth the event giving rise to the adjustment, the
      Conversion Price in effect prior to such adjustment, the adjusted
      Conversion Price and the effective date thereof).

7.8   Notwithstanding any other provision of this Condition 7, no adjustment
      shall be made which would (but for this Condition 7.8) result in the
      Conversion Price being reduced so that on conversion, Shares would fall to
      be issued at a discount to their nominal value, and in such case an
      adjustment shall be made to the effect that the Conversion Price will be
      reduced to the nominal value of the Shares.

7.9   Any adjustment to the Conversion Price shall not involve an increase in
      the Conversion Price (except upon any consolidation of the Shares pursuant
      to Condition 7.1(a)).

7.10  Every adjustment to the Conversion Price shall be certified in writing by
      an approved merchant bank (as defined in Condition 7.2).

7.11  The Company shall make available for inspection at its principal place of
      business in Hong Kong

<PAGE>

            at all times after the effective date of the adjustment in the
            Conversion Price and so long as this Note remains outstanding, a
            signed copy of the certificate of the approved merchant bank and a
            certificate signed by a director of the Company setting forth brief
            particulars of the event giving rise to the adjustment, the
            Conversion Price in effect prior to the adjustment, the adjusted
            Conversion Price and the effective date thereof and shall, on
            request, send a copy thereof to the Noteholder.

8     Procedure for Conversion and Share Issue

      8.1   The Conversion Rights may, subject as provided herein, be exercised
            on any Business Day, on or prior to the Maturity Date, by the
            Noteholder delivering a written notice to the Company in accordance
            with Condition 15 stating the intention of the Noteholder to convert
            the whole or any part(s) of the principal amount of this Note into
            Shares. Any such conversion notice shall be in the form annexed to
            the Conditions.

      8.2   The Company shall pay all taxes and stamp duty, issue and
            registration duties (if any) and levies and charges (if any) arising
            on any conversion.

            (a)   The Conversion Shares shall be allotted and issued by the
                  Company, credited as fully paid to the Noteholder or as it may
                  direct, within two (2) Business Days after, and with effect
                  from, the later of the Exercise Date or the date on which the
                  certificate for this Note is delivered to and received by the
                  Company.

            (b)   The certificate(s) for the Conversion Shares to which the
                  Noteholder or such person as it may direct shall become
                  entitled in consequence of any conversion shall, if the
                  Noteholder so requests in the notice, be deposited in the
                  CCASS participant's stock account set out in the notice or in
                  the absence of such request by the Noteholder, shall be issued
                  in board lots to the extent possible, with one certificate for
                  any odd lot of Shares arising from conversion and made
                  available for collection at the Company's address specified in
                  Condition 15, in each case, within the two (2) Business Days
                  period provided for in sub-paragraph (a) above, and (if
                  appropriate) the certificate for this Note with an endorsement
                  thereon by a director of the Company for any balance of this
                  Note not converted shall be made available for collection at
                  the Company's address specified in Condition 15 within the
                  same period.

9     Protection of the Noteholder

      9.1   So long as this Note is outstanding, unless with prior written
            approval of the Noteholder :

            (a)   the Company shall from time to time keep available for issue,
                  free from pre-emptive rights, out of its authorized but
                  unissued capital, sufficient Shares to satisfy in full the
                  Conversion Rights at the Conversion Price and all other rights
                  for the time being outstanding of subscription for and
                  conversion into Shares;

<PAGE>

            (b)   the Company shall not in any way modify the rights attached to
                  the Shares as a class or attach any special restrictions
                  thereto;

            (c)   the Company shall procure that at no time shall there be in
                  issue Shares of different nominal values;

            (d)   other than as a result of, or in circumstances where, an offer
                  made to holders of Shares to acquire all or any proportion of
                  the Shares becoming unconditional the Company shall use its
                  best endeavours to:

                  (i)   maintain a listing for all the issued Shares on the
                        Stock Exchange;

                  (ii)  obtain and maintain a listing on the Stock Exchange for
                        all the Conversion Shares issued on the exercise of the
                        Conversion Rights; and

                  (iii) obtain and maintain a listing for all the Conversion
                        Shares issued on the exercise of the Conversion Rights
                        on any other stock exchange on which any of the Shares
                        are for the time being listed;

                  and will forthwith give notice to the Noteholder in accordance
                  with Condition 15 of the listing or delisting of the Shares by
                  any such stock exchange;

            (e)   the Company shall provide the Noteholder with a copy of its
                  annual reports, annual financial statements and interim
                  reports and all other statements and circulars sent by the
                  Company to its shareholders within three (3) Business Days
                  after the Company sends the same to its shareholders;

            (f)   the Company shall ensure that all Conversion Shares issued
                  upon conversion of this Note shall be duly and validly issued
                  fully paid and registered;

            (g)   as soon as possible and in any event not later than two (2)
                  Business Days after the announcement of the full terms of any
                  event which give rise to adjustments pursuant to Condition 7
                  (or, if later, as soon as the relevant adjustment thereunder
                  can reasonably be determined), give notice to the Noteholder
                  advising it of the date on which the relevant adjustment of
                  the Conversion Price is likely to become effective and of the
                  effect of exercising the Conversion Rights pending such date;
                  and

            (h)   the Company shall comply with and procure the compliance of
                  all conditions imposed by the Stock Exchange or by any other
                  competent authority (in Hong Kong or elsewhere) for approval
                  of the issue of this Note or for the listing of and permission
                  to deal in the Shares issued or to be issued on the exercise
                  of the Conversion Rights and ensure the continued compliance
                  thereof (provided in each case that the Noteholder complies
                  with and satisfies all such conditions).

      9.2   If an offer is made to all holders of Shares (or such holders other
            than the offeror and/or any company

<PAGE>

            controlled by the offeror and/or persons associated or acting in
            concert with the offeror) to acquire all or a portion of the Shares
            and such offer comes to the knowledge of the Company, the Company
            shall forthwith give notice of such offer to the Noteholder and
            shall use all its reasonable endeavours to procure that a similar
            offer is extended in respect of this Note or in respect of any
            Shares issued on conversion of this Note during the period of the
            offer.

      9.3   The Company shall procure that no security issued by the Company
            shall be converted into Shares or exchanged for Shares except in
            accordance with the terms of issue thereof and that no security
            issued by the Company without the right to convert into Shares or to
            be exchanged for shares shall subsequently be granted such rights.

      9.4   The Company shall not do any act or engage in any transaction the
            result of which, having regard to the provisions of Condition 7,
            would be to reduce the Conversion Price to below the nominal amount
            of a Share.

      9.5   The Company shall not make any reduction or redemption of share
            capital, share premium account or capital redemption reserve
            involving the repayment of money to shareholders of the Company
            (other than to shareholders of the Company having the right on a
            winding-up to a return of capital in priority to the holders of
            Shares) or reduce any uncalled liability in respect thereof unless,
            in any such case, the same gives rise (or would, but for the
            provisions of Condition 7(e) give rise) to an adjustment of the
            Conversion Price in accordance with Condition 7.

      9.6   The Company shall not close its register of shareholders for more
            than ten (10) Business Days each year (in addition to any period
            required by law or regulation including the Listing Rules) or take
            any other action which prevents the transfer of its Shares generally
            unless, under the laws of Hong Kong and Bermuda and the bye-laws of
            the Company as then in effect, this Note may be converted legally
            into Shares and the Shares so converted may be transferred at all
            times during the period of such closure. The Company shall not take
            any action which prevents the conversion of this Note or delivery of
            Shares in respect thereof.

      9.7   The Company hereby covenants with and undertakes to the Noteholder
            that, so long as this Note remains outstanding, copies of all press
            releases and information routinely provided or otherwise made
            available to shareholders of the Company and any public filings made
            to any Hong Kong regulatory organization by the Company shall be
            sent to the Noteholder no later than one (1) Business Day after such
            information becomes publicly available.

      9.8   The Company shall not issue or pay up any securities by way of
            capitalization of profits or reserves other than (i) by the issue of
            fully paid Shares to holders of its Shares; or (ii) as mentioned in
            Condition 7.3(b); or (iii) by the issue of Shares in lieu of a cash
            dividend in the manner referred to in Condition 7.3(c).

      9.9   The Company shall not create or permit to be in issue any share
            capital other than the Shares, provided that nothing in this
            Condition 9.9 shall prevent any consolidation or sub-division of the

<PAGE>

            Shares.

      9.10  The Company shall not make any distribution in specie to holders of
            Shares unless the Noteholder is entitled to the Specie Distribution
            Right (as defined in Condition 11) in accordance with Condition 11.

      9.11  The Company shall not enter into any deed, agreement, assignment,
            instrument or documents whatsoever binding on it which may result in
            any breach of any of the terms and conditions of this Note.

      9.12  The Company shall not without the prior written consent of the
            Noteholder:

            (a)   amend the terms and conditions of any of the Other Convertible
                  Notes; or

            (b)   repay the outstanding principal amount of any of the Other
                  Convertible Notes or any part(s) thereof prior to its
                  maturity.

      9.13  Upon receipt of a conversion notice in respect of any of the Other
            Convertible Notes, the Company shall forthwith give notice of such
            conversion to the Noteholder together with a copy of the conversion
            notice received by it.

10    Events of default

      If any of the following events ("Events of Default") occurs, the
      Noteholder may give notice to the Company that this Note, on the giving of
      such notice, is immediately due and payable at its principal amount then
      outstanding together with interest from the date of issue of this Note up
      to and excluding the date of payment:

      (a)   the listing of the Shares (as a class) on the Stock Exchange:

            (i)   ceases; or

            (ii)  is suspended for a continuous period of ten (10) Business Days
                  on each of which the Stock Exchange is generally open for
                  trading due to the default of the Company or any of its
                  directors, officers, employees or agents;

      (b)   the Company breaches any of the Warranties (as defined in the
            Subscription Agreement) or defaults in performance or compliance
            with any of its obligations contained in the Conditions, which
            breach or default is incapable of remedy or, if capable of remedy,
            is not remedied within fourteen (14) Business Days after notice of
            such breach or default is sent from the Noteholder to the Company;

      (c)   an encumbrancer takes possession or a receiver, manager or other
            similar officer is appointed of the whole or any material part of
            the undertaking, property, assets or revenues of the Company or any
            of its subsidiaries;

<PAGE>

      (d)   the Company or any of its subsidiaries becomes insolvent or is
            unable to pay its debts as they mature or applies for or consents to
            the appointment of any administrator, liquidator or receiver of the
            whole or any material part of its undertaking, property, assets or
            revenues or enters into a general assignment or compromise with or
            for the benefit of its creditors;

      (e)   an order is made or an effective resolution passed for winding-up of
            the Company or any of its material subsidiaries;

      (f)   the Company defaults in the payment of the principal or interest in
            respect of this Note when and as the same ought to be paid and such
            default is not remedied by the Company within three (3) Business
            Days of the due date thereof;

      (g)   any other debentures, bonds, notes or other instruments of
            indebtedness or any other loan indebtedness ("Indebtedness") of the
            Company and its subsidiaries or any securities convertible into or
            exchangeable for shares ("Equity-Linked Securities") of the Company
            and its subsidiaries become prematurely repayable following a
            default in respect of the terms thereof which shall not have been
            remedied, or the Company or any of its subsidiaries defaults in the
            repayment of the Indebtedness or Equity Linked Securities at the
            maturity thereof or at the expiration of any applicable grace period
            thereof, or any guarantee of or indemnity in respect of any
            Indebtedness or Equity Linked Securities of others given by the
            Company or any of its material subsidiaries shall not be honoured
            when due and called upon;

      (h)   a moratorium is agreed or declared in respect of any indebtedness of
            the Company or any of its subsidiaries or any governmental authority
            or agency condemns, seizes, compulsorily purchases or expropriates
            all or any material part of the assets of the Company or any of its
            subsidiaries; or

      (i)   the Company or any of its subsidiaries consolidates or amalgamates
            with or merge into any other corporation (other than a
            consolidation, amalgamation or merger in which the Company or such
            subsidiary is the continuing corporation), or the Company or any of
            its subsidiaries sells or transfers all or substantially all of its
            assets,

      provided that notwithstanding the foregoing, if the Company shall fail to
      issue the Conversion Shares in accordance with the Conditions, the
      Noteholder shall be entitled to bring an action against the Company for
      either specific performance or damages. The Company will forthwith on
      becoming aware of any such event as is mentioned in this Condition give
      notice in writing thereof to the Noteholder. At any time after any
      interest amount or the principal amount of the Note has become payable,
      the Noteholder may without further notice institute such proceedings as it
      may think fit to enforce payment of the monies due.

11    Distribution in Specie

      If the Company declares a distribution in specie other than an issue of
      Shares in lieu of a cash dividend falling under Condition 7.3(c) (a
      "Specie Distribution") to shareholders at any time during the period in
      which the Noteholder can exercise its Conversion Rights, Noteholder will,
      unless an adjustment to the

<PAGE>

      Conversion Price has been made under Condition 7 in respect of the Specie
      Distribution in full, be entitled to an amount (the "Specie Distribution
      Right") which shall be determined as follows:

      (a)   the Company and the Noteholder will forthwith on the date of
            announcement of the Specie Distribution instruct the approved
            merchant bank (as defined in Condition 7.2) to value the Specie
            Distribution which would have been payable to the Noteholder on the
            Shares falling to be issued if the Noteholder had exercised its
            Conversion Rights immediately prior to the record date for the
            Specie Distribution in respect of the whole or any part(s) of the
            principal amount of the Note then outstanding (the "Notional Specie
            Distribution); and

      (b)   upon the determination of the approved merchant bank's valuation of
            the Notional Specie Distribution (which valuation shall be final and
            binding on both the Company and the Noteholder) the Company will pay
            a cash amount equal to the value of the Notional Specie Distribution
            to the Noteholder.

12    Voting

      The Noteholder shall not be entitled to receive notices of, attend or vote
      at, any meetings of the Company by reason only of it being the Noteholder.

13    Experts

      In giving any certificate or making the Adjustment, any approved merchant
      bank (as defined in Condition 7.2) appointed shall be deemed to be acting
      as experts and not as arbitrators and, in the absence of manifest error,
      their decision shall be conclusive and binding on the Company and the
      Noteholder and all persons claiming through or under them respectively.

14    Replacement Note

      14.1  If the certificate for this Note is lost or mutilated, the
            Noteholder shall notify the Company as soon as practicable and a
            replacement certificate shall be issued if the Noteholder provides
            the Company with a declaration by the Noteholder or its officer that
            the certificate for this Note had been lost or mutilated (as the
            case may be) or other evidence that the certificate for this Note
            had been lost or mutilated, together with the mutilated the
            certificate for this Note (if applicable).

      14.2  The certificate for this Note replaced in accordance with this
            Condition shall forthwith be cancelled.

15    Notices

      Any notice required or permitted to be given by delivering it to the
      party:

      (a)   in the case of the Noteholder, at the following address : [ ]

            Facsimile : [ ]
            Attention : [ ]
<PAGE>

      (b)   in the case of the Company, at the following address :

            7th Floor, Paul Y. Centre, 51 Hung To Road, Kwun Tong, Kowloon, Hong
            Kong
            Facsimile : (852) 2542 0298
            Attention : Board of Directors

      or to such other Hong Kong address or facsimile as the Company may have
      notified to the Noteholder or vice versa pursuant to this Condition 15 and
      may be given by sending it by registered post or by hand to such address
      or to such other address as the party concerned may have notified to the
      other parties in accordance with this Condition and such notice shall be
      deemed to be served on the day of delivery (or on the immediately
      following Business Day, if the day of delivery is not a Business Day or if
      the delivery or transmission is made after 5:00 p.m. Hong Kong time), or
      in the case of registered post 48 hours after posting, or if sooner upon
      acknowledgement of receipt by or on behalf of the party to which it is
      addressed, or if given or made by facsimile, when despatched with
      confirmation of successful transmission (and if the deemed date of
      delivery is not a Business Day, on the immediately following Business
      Day). Acknowledgement in writing of receipt of a notice by or on behalf of
      a party, signed or initialled by any employee of such party, shall be
      evidence that such notice has been duly served in accordance with this
      Condition.

16    Amendment

      The terms and conditions of this Note may be varied, expanded or amended
      by agreement in writing between the Company and the Noteholder.

17.   Governing law and jurisdiction

      This Note is governed by and shall be construed in accordance with Hong
      Kong law and the Company and the Noteholder agree to submit to the
      non-exclusive jurisdiction of the courts of Hong Kong in connection
      herewith.

<PAGE>

                                CONVERSION NOTICE

                       [To be attached to the Conditions]

Terms defined in the agreement in respect of the issue of convertible note dated
[ ] 2004 between [ ] and [ ] and in the certificate for the Note (as may be
amended) shall bear the same meanings in this Conversion Notice.

The undersigned hereby irrevocably elects to convert the following amount of
this Note into shares of HK$0.01 each in Wing On Travel (Holdings) Limited in
accordance with the terms and conditions of the Note and the terms below.

Amount to be converted: HK$[*]
(the Note must be attached to this notice)

Name of Noteholder:__________________________________________________________

Exercise Date:_______________________________________________________________
(the date this notice is given, or deemed to be given, by the Noteholder)

Applicable Conversion Price:_________________________________________________

Name in which Shares to be issued:___________________________________________

Address of shareholder:______________________________________________________

Signature of Noteholder:_____________________________________________________

<PAGE>

                                FORM OF TRANSFER

                       [To be attached to the Conditions]

To: Wing On (Holdings) Limited (the "COMPANY")

We are the holder of HK$[ ] in aggregate principal amount of the HK$[ ] 2%
Convertible Note due 2007 (the "NOTE") issued by the Company on [ ] 2004.

References in this Transfer Form to "CONDITIONS" are to the terms and conditions
on which the Note was issued, as the same may have been amended from time to
time pursuant to the terms thereof. Terms defined in the Conditions will have
the same meaning herein, save where the context otherwise requires.

1.    We hereby transfer [all/part] of the Note registered in our name in the
      Register to:

      _______________________________________________________________________

      of/whose registered office address is at*

      _______________________________________________________________________

      _______________________________________________________________________

      _______________________________________________________________________
      (the "TRANSFEREE")

2.    Total principal amount and Certificate number of the transferred Note:

      Total principal amount to be transferred                 ______________

      Certificate number of Certificate for Note
      being transferred                                        ______________

[3.   + Total principal amount of Note to be retained:

      Total principal amount to be retained                    ______________]

4.    We hereby request that a Certificate in respect of the transferred Note
      (as referred to in paragraph 2 above) be issued to the person(s) whose
      name(s) and address(es) are set out in paragraph 1 above and that such
      Certificate:

      *(a)  be despatched by registered mail to the person whose name and
            address are given below and in

<PAGE>

            the manner specified below:

            Name    : ___________________________

            Address : ___________________________

                      ___________________________

                      ___________________________

      *(b)  if no name and address are given in (a) above, be made available for
            collection at the office of the Company referred to for that purpose
            in the Conditions.

5.    The Certificate in respect of the transferred Note (as referred to in
      paragraph 2 above) is enclosed with this Transfer Form.

[6.   + We hereby request that a Certificate in respect of the Note to be
      retained by us as set out in paragraph 3 above be issued to the person(s)
      whose name(s) and address(es) is/are set out below:

      Name    :       ___________________________

      Address :       ___________________________

                      ___________________________

                      ___________________________

      and that such Certificate:

      *(a)  be despatched by registered mail to the person whose name and
            address are given below and in the manner specified below:

            Name    : ___________________________

            Address : ___________________________

                      ___________________________

                      ___________________________

      *(b)  if no name and address are given above, then such certificate will
            be made available for collection at the office of the Company
            specified or referred to for that purpose in the

<PAGE>

            Conditions.]

[7.   The registered account of the Transferee (being a HK$ account) for the
      purposes of receipt of principal and interest on and any other amounts in
      respect of the Note is (unless otherwise instructed by the Transferee) as
      follows:

      Name of Account      :     ___________________________

      Account No           :     ___________________________

      Sort Code            :     ___________________________

      Name of Bank         :     ___________________________

      Address of Bank      :     ___________________________

                                 ___________________________]

*     delete as appropriate

+     complete if only transferring part of the Note of which the transferring
      Noteholder is the holder, otherwise delete.

Name of Transferor         :     ___________________________

Signature of Transferor    :     ___________________________

Date                       :     ___________________________

Name of Transferee         :     ___________________________

Signature of Transferee    :     ___________________________

Date                       :     ___________________________

<PAGE>

                                   SCHEDULE 2

                             COMPLETION REQUIREMENTS

1.    Obligations of the Company

      At Completion, the Company shall deliver to the Subscriber:

      (a)   a certified copy of the board resolution of the Company approving
            and authorizing the execution and completion of this Agreement and
            the issue to the Subscriber or its nominee(s) of the Certificate in
            respect of the Note for the principal amount of HK$155,000,000.00 by
            the Company;

      (b)   a certified copy of the shareholders' resolutions of the Company
            approving the matters specified in Clause 3.1(b) and certified
            copies of documentary or other evidence reasonably satisfactory to
            the Subscriber showing that the Conditions Precedent (to the extent
            not waived) have been fulfilled; and

      (c)   a Certificate for the Note for the principal amount of
            HK$155,000,000.00 duly issued in favour of the Subscriber or its
            nominee.

2.    Obligations of the Subscriber

      At Completion, the Subscriber shall satisfy and discharge its obligation
      to pay to the Company HK$155,000,000.00 (being the subscription price of
      the Note for which the Subscriber has agreed to subscribe or procure
      subscription under Clause 2.1) in the following manner:

      (a)   the Company shall:

            (i)   give the Subscriber a direction in writing at least two (2)
                  Business Days prior to the Completion that the subscription
                  price for the Note shall be, whether as to the entirety or a
                  sufficient portion thereof, applied to repay the entire
                  outstanding principal amount of the 2002 Convertible Note as
                  at the Completion Date; and

            (ii)  at Completion pay all the interest accrued under the 2002
                  Convertible Note from the last interest payment date up to and
                  including the Completion Date in accordance with the terms of
                  the 2002 Convertible Note by way of cheque drawn in favour of
                  Million Good (or as it may direct); and

      (b)   the Subscriber shall against the Company's compliance with the
            obligations set out in paragraph 2(a) contemporaneously deliver to
            the Company on Completion the following:

            (i)   the original certificate of the 2002 Convertible Note for
                  cancellation; and

            (ii)  if and to the extent that there is any remaining balance of
                  the subscription price for the Note not applied in redemption
                  of the 2002 Convertible Note as aforesaid, a cheque, dated on
                  or before the Completion Date and drawn on a licensed bank in
                  Hong Kong, for an amount equal to such remaining balance drawn
                  in favour of the Company (or such other person as it may
                  direct),

            whereupon the 2002 Convertible Note shall be deemed to have been
            duly redeemed at the principal amount and accrued interest then
            outstanding without any penalty, premium or fee on the part of the
            Company, which shall be (and the Subscriber shall procure the
            Company to be) fully and absolutely released and discharged of any
            and all outstanding payment obligations and liabilities under the
            2002 Convertible Note notwithstanding any provisions thereof.

<PAGE>

                                   SCHEDULE 3

                                   WARRANTIES

(a)   Incorporation: the Company is duly incorporated and validly existing in
      good standing under the laws of Bermuda with power to conduct its business
      in the manner presently conducted and the information contained in
      Recitals (A) to (C) is true and accurate. The entire existing issued share
      capital of the Company is listed on the Stock Exchange. The Company is not
      aware of any circumstances whereby such listing will be suspended,
      cancelled or revoked at Completion.

(b)   Authorization:

      (i)   save as mentioned in this Agreement and subject to the fulfillment
            of the Conditions Precedent, the Company has the full power and
            authority to enter into and perform this Agreement and the directors
            of the Company are authorized to issue the Note and that in entering
            into this Agreement, the Company does not do so in breach of any
            applicable legislation or rules and this Agreement constitutes and
            the Note, when issued, shall constitute valid, binding and
            enforceable obligations of the Company; and

      (ii)  subject to the fulfillment of the Conditions Precedent, the Company
            has full power and authority to issue the Note and perform its
            obligations thereunder, and in particular the Company shall at all
            material times have sufficient authorized but unissued share capital
            for the Company to perform its obligations under the Note (to the
            extent unredeemed and unconverted) and the Conversion Shares, when
            issued, shall be duly authorized and shall rank pari passu in all
            respects with all other existing Shares outstanding at the date of
            conversion and be entitled to all dividends and distributions the
            record date for which falls on a date on or after the date of the
            conversion notice.

(c)   Consents: subject to the fulfillment of the Conditions Precedent, all
      necessary consents authorizations and approvals of any governmental agency
      or regulatory body required in Bermuda or Hong Kong or any other relevant
      jurisdiction for or in connection with this Agreement and the Note and the
      performance of the terms hereof and thereof have been obtained or made or
      shall have been obtained or made by Completion.

(d)   No Conflict: subject to the fulfillment of the Conditions Precedent, the
      execution of this Agreement and the issue of the Note does not infringe
      and is not contrary to any laws or regulations of any government or
      regulatory body of Hong Kong or Bermuda or any other relevant jurisdiction
      and does not result in any breach of the terms of the Memorandum of
      Association and Bye-laws of the Company and shall not conflict with or
      result in a breach of any of the terms of or constitute a default under
      any deed, agreement, mortgage or other obligation to which the Company is
      a party or by which any of its properties or assets are bound.

(e)   Litigation: there are no actions, suits, proceedings, arbitration or
      administrative proceeding that is currently taking place or pending or
      threatened against or affecting any member of the Group or any of its
      properties or assets which would individually or in the aggregate have a
      material adverse effect on the condition (financial or otherwise),
      prospects, results of operations or general affairs of the Group taken as
      a whole, or on the ability of the Company to perform its obligations under
      this Agreement and the Note, or which are otherwise material in the
      context of the issue and delivery of the Note.

(f)   Absence of Certain Changes: since 31 December 2002, there has been no
      material adverse change in the condition (financial or otherwise),
      prospects, results of operations or general affairs or prospect of the
      Group taken as a whole. Since 31 December 2002 and up to the date of this
      Agreement, no dividend or any other distribution has been declared, made
      or paid by the Company.

(g)   Financial Statements: the Accounts present a true and fair view of the
      results and the state of affairs and financial position of the Group as at
      31 December 2002 and for the period specified therein and the Accounts
      have been prepared in accordance with generally accepted accounting
      principles and practice

<PAGE>

      including all applicable statements of standard accounting practice
      generally applied in Hong Kong. The Accounts make proper provision for all
      of the actual and contingent liabilities of the Company or any of its
      subsidiaries and comply with the applicable disclosure requirements of the
      Companies Ordinance (Chapter 32 of the Laws of Hong Kong). The Interim
      Report presents a true and fair view of the results and the state of
      affairs and financial position of the Group as at 30 June 2003 and for the
      period specified therein and the Interim Report has been prepared in
      accordance with all applicable statements of standard accounting practice
      generally applied in Hong Kong.

(h)   Outstanding Options: save for the Share Option Plan, the 2002 Convertible
      Note, the Notes Subscription Agreements, this Agreement and the
      convertible notes issued by the Company as disclosed in the annual report
      of the Company for the accounting period ended 31 December 2002, there are
      no options, rights to acquire, or any other form of security or
      encumbrance on over or affecting any part of the unissued share capital of
      the Company and there is no agreement or commitment to give or create any
      of the foregoing and no claim has been made by any person to be entitled
      to any of the foregoing.

(i)   None of the members of the Group is in breach of any rules, regulations or
      requirements of the Stock Exchange in any respect.

(j)   No material outstanding indebtedness of any member of the Group has become
      payable or repayable by reason of any default.

(k)   No event exists or has occurred and no condition is in existence which
      would be (after the issue of the Note) an event of default under Condition
      10 of the Conditions and no event or act has occurred which, with the
      giving of notices, or the lapse or time, or both, would (after the issue
      of the Note), constitute such an event of default.

(l)   All information and documents supplied by the Company and its
      subsidiaries, and their respective directors, solicitors, accountants or
      auditors to the Subscriber relating to the Group are complete, accurate
      and up-to-date in all respects.

(m)   There are no material facts or circumstances, in relation to the assets,
      business or financial condition of the Company and/or any of its
      subsidiaries which have not been fully and fairly disclosed in writing to
      the Subscriber and which, if disclosed, might reasonably have been
      expected to affect the decision of any prudent investor to enter into this
      Agreement.

(n)   Without the prior written consent of the Subscriber, from the date hereof
      until the issue of the Note, no act will be done and no circumstances will
      arise which will had the Note been issued as at the date hereof give rise
      to an adjustment of the Conversion Price (as defined in the Conditions)
      under Condition 7 of the Note.

(o)   The terms and conditions under the Notes Subscription Agreements are no
      more favourable to the subscribers thereunder than those available to the
      Subscriber hereunder and there will be no amendments to any such term or
      condition without a similar amendment to this Agreement.

<PAGE>

AS WITNESS whereof this Agreement has been duly executed on the date first above
written.

SIGNED by                  )
                        )
for and on behalf of       )
WING ON TRAVEL             )
(HOLDINGS) LIMITED            )
in the presence of:        )

_______________________________

SIGNED by                  )
                        )
for and on behalf of       )
CHINA ENTERPRISES LIMITED)
in the presence of:        )

_______________________________<PAGE>

                              EXHIBIT NUMBER 4(a)2

                   CONTRACT FOR ACQUISITION OF THE PROPERTIES

      (This is an English translation of the Xiangzhang Garden Real Estate
                     Sale and Purchase Contract in Chinese)

                                     Between

                  Shanghai Jiu Sheng Investment Company Limited

                                       and

                            Manwide Holdings Limited

            Xiangzhang Garden Real Estate Sale and Purchase Contract

                               Date: June 16, 2004

<PAGE>

                                    Contents

Whereas:

<TABLE>
<S>                        <C>
Article 1                  Definitions

Article 2                  Subject Property

Article 3                  Information Disclosure

Article 4                  Restrictive Rights

Article 5                  Nature of Land and Transfer Procedure

Article 6                  Status of Construction Works and Title Processing

Article 7                  Presale

Article 8                  Consideration and Payment

Article 9                  Delivery of Subject Property

Article 10                 Insurance

Article 11                 Transaction Completion Date

Article 12                 Optional Terms

Article 13                 Alteration to Terms of Transaction

Article 14                 Property Management

Article 15                 Maintenance Arrangement

Article 16                 Mutual Assistance Obligation

Article 17                 Statement and Guarantee

Article 18                 Liability for Breach

Article 19                 Project Cooperation Team

Article 20                 Settlement of Dispute

Article 21                 Miscellaneous
</TABLE>

<PAGE>

Xiangzhang Garden Real Estate Sale and Purchase Contract

This "Xiangzhang Garden Real Estate Sale and Purchase Contract" (hereinafter
referred to as "this Contract") is signed by the two parties hereunder in
Shanghai, China on June 16, 2004:

Seller: Shanghai Jiu Sheng Investment Company Limited, a Chinese company with
limited liability established and in existence under the laws of People's
Republic of China, whose registered address is Unit 608, 187 South Wuning Road,
Jing'an District, Shanghai, with Li Baocheng as a legal representative
(hereinafter referred to as "Jiu Sheng Investment");

as one party hereto; and

Purchaser: Manwide Holdings Limited (Chinese name:, a foreign company
established and in existence under the laws of British Virgin Island, whose
registered address is The offices of Offshore Incorporations Limited, P.O. Box
957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands,
with Mr. Zhang Hanjie as an authorized representative (hereinafter referred to
as "Manwide Holdings");

as the other party hereto.

(The seller and purchaser aforesaid are referred to collectively as "both
parties" or individually as "one party" from time to time)

Whereas:

1.    Manwide Holdings and Jiu Sheng Investment have agreed unanimously with all
      the key transaction documents on the purchase by Manwide Holdings of the
      whole building of Xiangzhang Garden owned by Jiu Sheng Investment;

2.    After the signing of this Contract, Manwide Holdings intends to establish
      a foreign-invested enterprise in Shanghai under the name of Rosedale
      Property (Shanghai) Company Limited (a provisional name , the final name
      of it shall be the name set out in the business license to be issued) (
      hereinafter referred to as "Pakli Property"), which, once lawfully
      established, shall take over Manwide Holdings' rights and obligations
      under this Contract and all annexes hereto. Jiu Sheng Investment is fully
      aware of the arrangement to be made by Manwide Holdings and has agreed
      that Manwide Holdings' status as party to this Contract will then be
      succeeded by Pakli Property in accordance with the relevant provisions of
      Article 21 of this Contract.

      Hence, in the principles of honesty, credibility, willingness and
      equality, both parties have, through amicable consultation, come into an
      agreement in connection with the property transaction as follows.

<PAGE>

Article 1 Definitions

Both parties confirm that, in this Contract, the following expressions shall
have the following meanings:

1.    Signing Date: the date on which representatives of both parties sign or
      seal this Contract.

2.    Delivery Date: the date on which the ownership of the Subject Property
      (all or part of the properties of Xiangzhang Garden) under this Contract
      is transferred.

3.    Transaction Completion Date: the date on which all precedent conditions
      under Article 11 (1) of this Contract or all fundamental requirements
      under Article 13 (4) are satisfied or fulfilled, which shall be the date
      on which document(s) necessary to prove the last precedent condition or
      fundamental requirement has been satisfied or fulfilled is (are) issued.

4.    Transaction Date: the date on which Jiu Sheng Investment, after obtaining
      the integral property ownership certificate of the Subject Property
      hereunder, signs a standard "Shanghai Commodity Property Sale Contract" in
      the unified form used in Shanghai for the purpose of altering the
      ownership registration of the property with Manwide Holdings (or any third
      party designated by it), which will not occur until all precedent
      conditions under Clause 1 of Article 11 hereto of this Contract or all the
      fundamental requirements under Clause 4 of Article 13 hereto have been
      satisfied or fulfilled.

5.    Transfer Date: the date on which the Real Estate Exchange Center issues
      the integral property ownership certificate, in the name of Manwide
      Holdings (or any third party designated by it), of the Subject Property
      or, if Manwide Holdings finally exercises its right under this Contract to
      purchase part of Xiangzhang Garden at a consideration of Renminbi seventy
      million, of the part of Xiangzhang Garden it will purchase.

Article 2 Subject Property

1.    Unless otherwise provided in this Contract, the property to be acquired by
      Manwide Holdings from Jiu Sheng Investment under this Contract, which
      comprises the whole building of Xiangzhang Garden and all its pertaining
      interests (hereinafter collectively referred to as the "Subject Property"
      or " Xiangzhang Garden ").

2.    Xiangzhang Garden is located at Nos.219 and 229 Jiang Ning Road, Jing An
      District, Shanghai, the existing Land Use Right Certificate of which is
      Shanghai Real Property Ownership Certificate (Hu Fang Di Jing Zi (2002)
      No. 007070) and the Lot No. of which is hillock 8/1 (2), lane 92, Jiang
      Ning Road, Jing An District. It occupies a piece of state-owned land with
      an area of 5,493.50 sq. meters. Its state-owned land use right was
      obtained by way of transfer.

3.    Xiangzhang Garden has a frame structure, with two (2) floors of basement
      and twenty-four (24) upper floors with a gross floor area of 37,060.43 sq.
      meters (a provisional estimated figure, the final figure shall be the area
      set out in the integral property ownership certificate of Xiangzhang
      Garden to be obtained).

<PAGE>

Article 3 Information Disclosure

1.    In order to prove that Jiu Sheng Investment has the legal and integral
      real estate ownership of the Subject Property, Jiu Sheng Investment has
      provided Manwide Holdings with the government approvals and certificates
      regarding, among other things, land use right, property project and
      procedure of construction works, details of which are set out in an annex
      hereto headed "List of Inspection Documents".

2.    Jiu Sheng Investment has provided Manwide Holdings with a list regarding,
      among other things, the construction of and the equipments ordered for
      Xiangzhang Garden, to facilitate Manwide Holdings to understand the actual
      construction status of the Subject Property, details of which are set out
      in an annex hereto headed "List of Construction Works and Equipments
      Ordered" .

3.    Jiu Sheng Investment declares and warrants that the aforesaid documents it
      provided to Manwide Holdings are true and effective, and are documents
      that have to be noticed by Manwide Holdings when considering and deciding
      all conditions of the transactions under this Contract and constitute the
      basis for Manwide Holdings in doing so. In the event that Manwide Holdings
      suffers any economic loss of any nature as a result of untrue documents or
      corresponding information provided by Jiu Sheng Investment, Jiu Sheng
      Investment shall provide complete and adequate compensation.

Article 4 Restrictive Rights

1.    Jiu Sheng Investment declares that, as of the date of signing of this
      Contract, the Subject Property is not subject to any restrictive right of
      any nature (including, but not limited to, mortgage right, closing order
      and other judicial preservations and presale registration), except for the
      two Mortgage Guarantees stated below:

      (1)   the under-constructed Xiangzhang Garden has been pledged by Jiu
            Sheng Investment as collateral for a loan of Renminbi one hundred
            and seventy million (RMB170 million) from China Construction Bank
            Beijing branch Chaoyang sub-branch to Stellar Megamedia Co., Ltd.;

      (2)   the under constructed Xiangzhang Garden has been pledged by Jiu
            Sheng Investment for its loan of Renminbi one hundred and seventy
            million (RMB170 million) from China Minsheng Bank.

2.    Jiu Sheng Investment declares and warrants that all land premiums due or
      additional land premium under this Contract shall be borne by Jiu Sheng
      Investment.

3.    Jiu Sheng Investment declares and warrants that so far as known to Jiu
      Sheng, as of the date of signing of this Contract, there is no property
      rights dispute, creditors and debtors dispute, claims or right request of
      other nature claimed by any third party against the Subject Property or
      the land use right relating to the Subject Property, including those
      claimed against Jiu Sheng Investment in the future).

4.    Jiu Sheng Investment declares and warrants that the warranty under Clause
      1 to 3 above are true and in full force, and it will compensate completely
      and adequately in the event that Manwide Holdings suffers any economic
      loss of any nature as a result of untrue warranty.

<PAGE>

Article 5 Nature of Land and Transfer Procedure

1.    Jiu Sheng Investment undertakes and warrants that it will procure the
      change of land usage of the Subject Property under this Contract from
      "office" to "commercial/residential" or " land for commercial/ residential
      development", and procure the change of building usage from
      "commercial/office building" to "commercial/residential building" or
      "commercial/residential complex " within one hundred and fifty (150) days
      after the signing of this Contract. In these alterations, it shall be
      confirmed that the podium from the 1st to 4th floors of Xiangzhang Garden
      shall be used for commercial purpose, which the total gross floor area is
      7,836.49 sq. meters (a provisional figure, the final figure shall be the
      area set out in the integral property ownership certificate of Xiangzhang
      Garden to be obtained); the 5th to 24th floors of Xiangzhang Garden shall
      be used for residential purpose and the gross floor area of which shall be
      29,223.54 sq. meters (a provisional figure, the final figure shall be the
      area set out in the integral property ownership certificate of Xiangzhang
      Garden to be obtained). The fulfillment by Jiu Sheng Investment of its
      obligations to change land usage under the foregoing clauses in this
      Article is subject to the receipt of a consent thereto from the Shanghai
      Municipal Planning Commission, and all the expenses required to complete
      the alteration shall be borne by Jiu Sheng Investment. Upon receiving such
      consent, Jiu Sheng Investment shall notify Manwide Holdings in writing
      immediately, and in the event that it fails to receive such consent it
      shall also notify Manwide Holdings in writing no later than the date
      falling on the one hundred and fiftieth (150th) day after the signing of
      this Contract.

2.    Both parties agree that, in the event that Jiu Sheng Investment fails to
      complete the alteration of land usage within the period stipulated in
      Clause 1 of this Article, Manwide Holdings shall be entitled to the
      following options:

            (1)   Manwide Holdings may confirm that it will continue to acquire
                  the whole building of Xiangzhang Garden pursuant to this
                  Contract notwithstanding the failure to complete the
                  alteration of land usage;

            (2)   Manwide Holdings may, at its option, change the terms of the
                  transaction in accordance with Article 13 hereof, to purchase
                  certain units of Xiangzhang Garden at a total consideration of
                  Renminbi seventy million (RMB 70,000,000).

3.    Both parties confirm that Manwide Holdings shall exercise its options
      under Clause 2 herein by giving a notice in writing to Jiu Sheng
      Investment within thirty (30) working days after receiving the written
      notice issued by Jiu Sheng Investment in accordance with Clause 1 above,
      or failing which, it will be deemed that Manwide Holdings agrees to
      continue to purchase the whole building of Xiangzhang Garden pursuant to
      this Contract.

4.    Before the transfer of the Subject Property under this Contract to Manwide
      Holdings (or any third party designated by it), Jiu Sheng Investment shall
      pay up the land premium and complete the land use right transfer
      procedures of the Subject Property in accordance with the payment
      requirement regarding lands for commercial and residential development
      (or, the alteration of land uses fails to complete, lands for office
      purpose) and the relevant state and local laws.

<PAGE>

5.    When Jiu Sheng Investment completing the land use right transfer
      procedures and paying the land premium due or outstanding in accordance
      with terms of this Article above, all the requirements made by any
      government land authority in the land transfer contract (or documents of
      similar nature) shall not restrict the transaction purpose, conditions and
      estimated profit agreed by both parties under this Contract.

Article 6 Status of Construction Works and Title Processing

1.    Jiu Sheng Investment undertakes that the Subject Property hereunder can be
      legally used for the purpose of hotel apartment.

2.    Jiu Sheng Investment undertakes that during the period between the signing
      of this Contract and the Transaction Date, Jiu Sheng Investment shall
      complete all the necessary procedures as required by the national and
      local laws and regulations (including, but not limited to, the
      re-measurement of all the floors and each partitioned unit of the whole
      building of Xiangzhang Garden and approval and certification of the
      results thereof), so as to guarantee that Manwide Holdings will be issued
      an integral property ownership certificate for all the partitioned units
      specified in the annex in respect of all or part of the property of
      Xiangzhang Garden that are purchased under this Contract, and to
      facilitate Manwide Holdings in future resale on unit basis and obtain
      independent ownership certificate for each unit in due course.

3.    Jiu Sheng Investment shall solely bear all the expenses incurred for the
      fulfillment of its obligations under the Clauses 1 and 2 of this Article.
      However, after the signing of this Contract and all of its annexes, where
      Manwide Holdings requires any change to the partition status of unit (s)
      that has been specified in the annex hereto, the additional expenses
      thereof shall be borne by Manwide Holdings.

4.    Where this Contract comes into effect, both Jiu Sheng Investment and
      Manwide Holdings shall pay their respective taxes and charges regarding
      the transaction of Xiangzhang Garden under the national and local
      regulations in Shanghai.

5.    Both Parties confirm that, in the event Manwide Holdings exercise the
      option for selective purchase according to Clause 2 (4) of Article 9
      hereof or changes the transaction according to Article 13 hereof, Manwide
      shall bear the valuation fees, additional stamp duty and transaction
      handling fees and all the related costs (notwithstanding it is prescribed
      being payable by the seller or the purchaser) incurred as a result of a
      valuation of the Subject Property and a reclaim of tax on the basis of an
      accessed value by any party as required by the relevant government
      authorities (including financial and tax authorities and real estate
      transaction regulatory authorities).

Article 7 Presale

1.    Jiu Sheng Investment agrees that, on the condition that Jiu Sheng
      Investment has completed the alteration of land usage of Xiangzhang Garden
      under Article 1(5) hereof (or Manwide Holdings opts to purchase the whole
      building of Xiangzhang Garden under Clauses 2 and 3 of Article 5 hereof
      though Jiu Sheng Investment fails to complete the alteration of land usage
      of Xiangzhang Garden under Clause 1 of Article 5

<PAGE>

      hereof) , Manwide Holdings is entitled to decide at its own discretion to
      launch all or any part of the Subject Property for presale prior to the
      transfer of the Subject Property to Manwide Holding.

2.    Jiu Sheng Investment undertakes and warrants that it will be responsible
      for obtaining the "Commodity Property Presale Permit" of Xiangzhang Garden
      in the name of Jiu Sheng Investment within one hundred and fifty (150)
      days after the signing of this Contract and in the event that Jiu Sheng
      Investment has completed the alteration of land usage of Xiangzhang Garden
      specified in Clause 1 of Article 5 hereof to cause the land usage
      stipulated in the Presale Permit be altered accordingly.

3.    So long as Manwide Holdings is entitled to launch Xiangzhang Garden for
      presale pursuant to this Article, Jiu Sheng Investment shall provide
      Manwide Holdings with full and unconditional cooperation for the presale
      of Xiangzhang Garden and assist Manwide Holdings in completing necessary
      procedures. Details of which are set out in an annex hereto headed
      "Presale Arrangement Agreement".

Article 8 Consideration and Payment

1.    The total purchase price of the Subject Property amounts to Renminbi four
      hundred and fifty million (RMB 450,000,000), representing the whole and
      complete consideration payable by Manwide Holdings to Jiu Sheng Investment
      for obtaining the entire interests under this Contract and all its
      annexes. Unless otherwise provided in this Contract, or otherwise agreed
      in writing by and between both parties in the future, Jiu Sheng Investment
      shall not claim any additional cost of any nature by whatever reason
      against Manwide Holdings.

2.    Upon the signing of this Contract, Manwide Holdings shall pay Renminbi
      fifty million (RMB 50,000,000) to Jiu Sheng Investment and, since the date
      on which this Contract comes into effect, such amount shall serve as the
      deposit payable to Jiu Sheng Investment by Manwide Holdings in connection
      with the sale and purchase of the Subject Property under this Contract and
      shall be converted into a down payment pursuant to this Contract after the
      Transaction Completion Date. If this Contract does not finally take effect
      Jiu Sheng shall return the said Renminbi fifty million (RMB 50,000,000).

3.    Both parties confirm that, subject to Pakli Property, the new foreign
      invested enterprise to be established by Manwide Holdings in Shanghai,
      being legally established, Jiu Sheng Investment shall, in accordance with
      the annex hereto headed "Arrangement on Transfer of Payers of the
      Deposit", assist and cooperate with Manwide Holdings and Pakli Property to
      change the payer of the aforementioned deposit from Manwide Holdings to
      Pakli Property within ten (10) banking days after the authorized
      representative of Pakli Property signs and seals this Contract and all its
      annexes in accordance with Clause 10 of Article 21hereof.

4.    Manwide Holdings shall pay to Jiu Sheng Investment an amount of RMB
      20,000,000 (Renminbi twenty million ) within three (3) banking days after
      the Transfer Date under this Contract.

5.    The amount paid under Clause 2 above shall convert automatically into a
      down payment payable by Manwide Holdings for purchasing the Subject
      Property upon the signing of the standard "Shanghai

<PAGE>

      Commodity Property Sale Contract" in the unified form used in Shanghai on
      the Transaction Date.

6.    Both parties confirm that, except for the payment made under Article 2 and
      4 above, the balance of the total consideration specified in Article 1
      above amounting to Renminbi three hundred and eighty million
      (RMB380,000,000) shall be paid out of commercial loans extended to Manwide
      Holdings by a domestic bank secured by the Subject Property. Jiu Sheng
      Investment undertakes that, prior to transfer, it will ensure , on or
      after the transfer of the Subject Property, a bank commercial loan of not
      less than Renminbi three hundred and eighty million (RMB380,000,000) in
      total be obtained by Manwide Holdings, which is repayable in no less than
      three (3) years and bears interests at a rate no higher than 110% of the
      comparable benchmark interest rate prevailing on the date when the loan is
      extended.

7.    Both parties confirm that, subject to the signing of this Contract,
      without the prior written consent of Manwide Holdings, Jiu Sheng
      Investment shall not sign, with the Subject Property as collateral,
      contracts of any nature (especially borrowing contracts) with any entity
      (including, but not limited to, banks, financial institutions and other
      parties not being a natural person) or natural person, otherwise, Manwide
      Holdings is entitled to unilaterally terminate this Contract (in which
      case, this Contract shall lapse automatically since the date on which
      Manwide Holdings issues the notice to terminate this Contract), and to
      demand Jiu Sheng Investment to repay all paid-up amount within seven (7)
      days from the termination of this Contract, together with interest accrued
      at the prevailing bank interest rate of the bank loans for a same term
      from the actual payment date to the actual repayment date.

Article 9 Delivery of Subject Property

1.    Jiu Sheng Investment undertakes that it will complete the construction
      works of Xiangzhang Garden in line with the designed standards currently
      confirmed by both parties and make it ready for trial operation within one
      hundred and eighty (180) days after the signing of this Contract. Jiu
      Sheng Investment shall complete the completion testing work of Xiangzhang
      Garden within ninety (90) days after the completion of Xiangzhang Garden,
      and obtain the integral property ownership certificate for the Subject
      Property within ninety (90) days after the completion testing work of
      Xiangzhang Garden. Both parties confirm that the construction period of
      Xiangzhang Garden may be extended in the event that Manwide Holdings
      proposed additional requests for modification not included in this
      Contract and its annexes.

2.    Jiu Sheng Investment undertakes and guarantees that, if it fails to have
      Xiangzhang Garden completed and ready for trial-operation in line with the
      designed standards confirmed by both parties upon signing of this Contract
      within one hundred and eighty (180) days as stipulated in Clause 1 of this
      Article, Manwide Holdings shall be entitled to opt and exercise one of the
      following rights at its discretion:

      (1)   immediately terminate this Contract at its discretion by giving a
            written notice to Jiu Sheng Investment, and require Jiu Sheng
            Investment to repay the full amount of the money paid by Manwide
            Holdings under this Contract, together with interests (from the
            payment date to the repayment date based on the prevailing bank
            lending rate), within seven (7) days upon receiving the notice.

      (2)   extend the term of one hundred and eighty (180) days mentioned above
            by giving a written notice to Jiu

<PAGE>

            Sheng Investment, and the details of the extension shall be
            specified by Manwide Holdings at its discretion in due course,
            provided that during the extension, Jiu Sheng Investment shall pay
            to Manwide Holdings a default penalty of Renminbi two hundred
            thousand (RMB200,000) per day up to the date of delivery or
            expiration of the extension, and Manwide Holdings is entitled to
            deduct directly the aforesaid default penalty payable by Jiu Sheng
            Investment from the consideration of the transaction payable to Jiu
            Sheng Investment under this Contract. If Manwide Holdings finally
            exercises its right hereunder to purchase part of Xiangzhang Garden
            at a total consideration of Renminbi seventy million (RMB70
            million), Jiu Sheng Investment shall pay the accrued default penalty
            to Manwide Holdings on the Transaction Date. If Jiu Sheng Investment
            fails to have Xiangzhang Garden completed and ready for
            trial-operation in line with the designed standards currently
            confirmed by both parties within the extended period, Manwide
            Holdings shall be entitled to continue to exercise each of the
            options under Clause 2 of this Article 9 (including this
            sub-paragraph (2));

      (3)   take over the construction project of Xiangzhang Garden immediately
            after giving a written notice to Jiu Sheng Investment. Jiu Sheng
            Investment shall ensure all the project take-over works to be
            completed within fifteen (15) days upon receiving the written notice
            from Manwide Holdings, and provide all the necessary cooperation
            (including presentation of all the necessary written document(s) to
            external parties or going through all the necessary project
            procedures in the name of Jiu Sheng Investment) unconditionally to
            Manwide Holdings upon the take-over by Manwide Holdings after the
            take-over of Xiangzhang Garden. Jiu Sheng Investment is still liable
            to pay to external parties the construction cost, but the payment
            shall be controlled directly by Manwide Holdings. If Manwide
            Holdings believes the project will be delayed due to Jiu Sheng
            Investment's inability to make the construction payment, Manwide
            Holdings is entitled to pay the relevant project payment at its
            discretion instead. (Manwide Holdings shall be entitled to deduct
            directly the construction cost paid by it from the transaction
            consideration payable to Jiu Sheng Investment under this Contract);

      (4)   by giving a written notice to Jiu Sheng Investment, opt to change
            the transaction subject hereunder, that is, Manwide Holdings is
            entitled not to buy the whole building of Xiangzhang Garden, but opt
            to purchase certain floors representing 51% of the total gross floor
            area of Xiangzhang Garden building at a consideration of Renminbi
            seventy million (RMB70 million) (the specific floors shall be stated
            and determined by Manwide Holdings at its discretion, and the data
            on the gross floor area of Xiangzhang Garden and the floor area of
            each floor necessary in determining the 51% purchase ratio referred
            herein shall be subject to the related gross area specified in the
            annex hereto headed "Area Schedule of Xiangzhang Garden",
            notwithstanding any difference between the data and those specified
            in the preliminary documentation of Xiangzhang Garden or those
            specified in the finalized gross area as per the survey carried
            out). If a case entitling Manwide Holdings to opt to execute this
            item (4) turns out in future, related provisions hereunder (other
            than provisions on specific floors purchased) on alteration of the
            transaction shall apply automatically.

      (5)   agree that Jiu Sheng Investment continues to complete the
            construction of Xiangzhang Garden by giving a written notice to Jiu
            Sheng Investment, till the project is completed and ready for
            trial-operation in line with the designed standards currently
            confirmed by both parties, provided that Jiu Sheng Investment shall
            pay an accrued default penalty of Renminbi twenty thousand
            (RMB200,000)

<PAGE>

            per day to Manwide Holdings up to the date on which Xiangzhang
            Garden is completed and ready for trial-operation in line with the
            designed standards currently confirmed by both parties. Manwide
            Holdings is entitled to deduct directly the aforesaid default
            penalty payable by Jiu Sheng Investment from the consideration of
            the transaction payable to Jiu Sheng Investment under this Contract.
            If Manwide Holdings finally exercises its right hereunder to
            purchase part of Xiangzhang Garden at an aggregate consideration of
            Renminbi seventy million (RMB70 million), Jiu Sheng Investment shall
            pay the accrued default penalty to Manwide Holdings on the
            Transaction Date.

3.    The specific Delivery Date of the Subject Property (or parts of Xiangzhang
      Garden), which is ready for trial-operation, shall be otherwise negotiated
      by both parties, provided that Jiu Sheng Investment shall deliver the
      Subject Property (or parts of Xiangzhang Garden) to Manwide Holdings no
      later than fifteen (15) days after Xiangzhang Garden is completed and
      ready for trial-operation in line with the designed standards confirmed by
      both parties when signing of this Contract.

4.    Both parties confirm that, after the completion approval, the construction
      conditions of the Subject Property shall comply with the following
      agreements reached by both parties:

      (1)   the layout plan and partition status of each floor (including the
            two basement levels) shall be in line with the illustration shown in
            the annex hereto headed "Layout Plan of Each Floor";

      (2)   installment works shall be in line with provisions in the annex
            hereto headed "Delivery Standard of Installment Works";

      (3)   exquisite decoration (including all the outdoor decoration) shall be
            in line with provisions in the annex hereto headed "Delivery
            Standard of Exquisite Decoration";

      (4)   The decoration equipment conditions of each unit in the building
            shall be in line with those of the sample house and related public
            area, and the relevant agreements on the sample house and related
            public area are set out in the annex hereto headed "Options in
            Sample House and Decoration Equipment Arrangement";

      (5)   All the furniture appliances of each unit in the building shall be
            in line with provisions in the annex hereto headed "Furniture
            Appliance Equipment Standard".

5.    When the Subject Property (or part of Xiangzhang Garden) is delivered,
      both parties shall sign a delivery confirmation on the Delivery Date, and
      the signature thereon shall be taken as a mark of the delivery of the
      Subject Property (or part of Xiangzhang Garden). Jiu Sheng Investment
      shall deliver the related documents on the Delivery Date to Manwide
      Holdings, which shall include the whole completion layout of Xiangzhang
      Garden and the related agreements on the maintenance of equipment and
      establishment of Xiangzhang Garden. Details of the documents to be
      delivered are set out in the annex hereto headed "List of Project Handover
      Documents".

6.    The risk liability of the Subject Property (or part of Xiangzhang Garden)
      delivered by Jiu Sheng

<PAGE>

      Investment shall be transferred to Manwide Holdings (or a third party
      designated by Manwide Holdings) on the date of the transfer. The risk
      liability under this clause refers to the destruction or damage of the
      Subject Property due to force majeure or accidents out of the control of
      any party hereto.

Article 10  Insurance

1.    Jiu Sheng Investment undertakes that it has purchased necessary project
      insurance for the Subject Property, and maintained the insurance coverage
      throughout the construction period, till the Subject Property (or part of
      Xiangzhang Garden) is delivered to Manwide Holdings.

2.    Both parties confirm that all the insurance premiums are borne by Jiu
      Sheng Investment before the Subject Property is delivered to Manwide
      Holdings.

3.    Upon signing of this Contract, any insurance indemnity in respect of the
      Subject Property shall be deposited in a bank account jointly controlled
      by both parties, and shall be applied only for agreed purposes. Jiu Sheng
      Investment shall not utilize the amount.

Article 11 Transaction Completion Date

1.    The property transaction is conditional upon the satisfaction of all the
      following precedent conditions, unless Manwide Holdings indicates in
      writing to waiver one or more of the following precedent conditions:

            (1)   Jiu Sheng Investment has been granted the real estate
                  ownership certificate of Xiangzhang Garden (integral property
                  ownership certificate), which shall specify that the title to
                  the land is obtained by way of assignment or transfer, the
                  authorized land usage is "commercial/residential" or "land for
                  commercial/residential development", the building usage is
                  "commercial/residential building" or "commercial/residential
                  complex", and state that the podium from the 1st to 4th floors
                  shall be used for commerce purpose and the gross floor area of
                  which is 7,836.49 sq. meters (a provisional estimated figure,
                  the final figure shall be the area set out in the property
                  ownership certificate); the 5th to 24th floors shall be used
                  for residential purpose and the gross floor area of which is
                  29,223.54 sq. meters (a provisional estimated figure, the
                  final figure shall be the area set out in the property
                  ownership certificate). In addition, the number and area of
                  each unit at each floor set out in the schedule shall be in
                  line with the annex hereto headed "Site Plan for Each Floor of
                  Xiangzhang Garden", so that Manwide Holdings can obtain a
                  separate real estate certificate for each of the units for
                  future sale;

            (2)   Jiu Sheng Investment has altered the nature of the land of
                  Xiangzhang Garden from "office" to "commercial/residential" or
                  "land for commercial/residential development", and has paid up
                  the land premium of Xiangzhang Garden in accordance with the
                  paying standard of lands for commercial and residential
                  development and has obtained the receipts thereof from land
                  authorities;

<PAGE>

            (3)   Jiu Sheng Investment has submitted to Manwide Holdings a
                  guarantee issued by a third party to the satisfaction of
                  Manwide Holdings, together with relevant documents to the
                  satisfaction of Manwide Holdings and sufficient to evidence
                  the guarantee ability of the third party, which warrants that
                  the property rights of Xiangzhang Garden are not subject to
                  any third party right of any nature and, in the event that
                  Manwide Holdings suffers any loss arising from any breach of
                  the guarantee, the third party shall severally and jointly
                  with Jiu Sheng Investment compensate Manwide Holdings.

            (4)   Jiu Sheng Investment and Manwide Holdings have signed the
                  confirmation letter on the completion of the installation,
                  exquisite decoration, furnishing and logo design of Xiangzhang
                  Garden (logo design shall be completed by Manwide Holdings
                  with the assistance of Jiu Sheng Investment);

            (5)   All maintenance arrangements for Xiangzhang Garden have been
                  completed in accordance with this Contract.

            (6)   Jiu Sheng Investment has procured that Manwide Holdings would
                  be granted the commercial loan with terms specified in Clause
                  6 of Article 8 hereof on or after the transfer of Subject
                  Property, and has provided evidence thereto as authorized by
                  Manwide Holdings.

2.    Both parties confirm that all precedent conditions under Clause 1 of
      Article 11 above shall be satisfied by 1st June 2005, unless otherwise
      provided in this Contract.

3.    In the event that all precedent conditions to the completion of the
      transaction set out in this Article are duly satisfied, both parties shall
      sign a standard "Shanghai Commodity Property Sale Contract" in the unified
      form used in Shanghai for the purpose of altering the ownership
      registration of the property within ten (10) working days after the
      Transaction Completion Date and complete the property transfer procedures.

Article 12 Optional Terms

1.    In the event that any one of the precedent conditions to the completion of
      the transaction has not been satisfied by the end of the period specified
      under Clause 2 of Article 11 hereof, Manwide Holdings shall grant Jiu
      Sheng Investment an extension period (no less than sixty (60) days,
      subject to a further notice) to satisfy all the precedent conditions under
      Clause 1 of Article 11 hereof.

2.    In the event that Jiu Sheng Investment fails to satisfy all the precedent
      conditions to the completion of the transaction by the end of the
      extension period granted by Manwide Holdings under Clause 1 above, Manwide
      Holdings shall be entitled to terminate this Contract at its discretion by
      giving a written notice to Jiu Sheng Investment and Jiu Sheng Investment
      shall repay all amount paid by Manwide Holdings under this Contract within
      seven (7) days after receiving the notice, together with interests accrued
      at the prevailing bank interest rate of bank loans for a same term from
      the actual payment date to the actual repayment

<PAGE>

Article 13 Alteration to Terms of the Transaction

1.    In the event that Manwide Holdings opts to alter the terms of the
      transaction under Article 10 hereof, Jiu Sheng Investment is obliged to
      execute the transaction in accordance with the following clauses.

2.    Manwide Holdings does not purchase from Jiu Sheng Investment the whole
      building of Xiangzhang Garden, but purchases part of Xiangzhang Garden as
      set out in the annex hereto headed "Subject Property after Alteration".

3.    The total consideration at which Manwide Holdings purchases the property
      specified in Clause 2 of this Article is Renminbi seventy million
      (RMB70,000000), and constitutes the complete and adequate consideration
      for obtaining all the real estates and pertaining interests thereof.

4.    Both parties confirm that the part of Xiangzhang Garden to be purchased by
      Manwide Holdings under this Article shall meet the following fundamental
      requirements:

            (1)   Jiu Sheng Investment has been granted the real estate
                  ownership certificate of Xiangzhang Garden (integral property
                  ownership certificate), and the number, partition status and
                  unit area of each unit at each floor to be purchased by
                  Manwide Holdings as set out in the schedule of the integral
                  property ownership certificate shall be in line with the annex
                  hereto headed "Site Plan for Each Floor of Xiangzhang Garden",
                  so that Manwide Holdings can obtain a separate real estate
                  certificate for each of the units for future sale;

            (2)   In order to ensure that the title to the land shown in the
                  real estate ownership certificates of the part of Xiangzhang
                  Garden to be purchased by Manwide Holdings is "obtained by way
                  of assign", Jiu Sheng Investment has paid up the land premiums
                  for the part of Xiangzhang Garden to be purchased by Manwide
                  Holdings in accordance with the state and local regulations
                  and has obtained the receipts from land authorities;

            (3)   Jiu Sheng Investment has withdrawn all the mortgage rights set
                  out in Clause 1 of Article 4 hereof and the Subject Property
                  is not subject to any other mortgage rights or restrictive
                  rights (including, but not limited to, mortgage right,
                  attachment and other judicial preservations and presale
                  registration);

            (4)   Jiu Sheng Investment has submitted to Manwide Holdings a
                  guarantee issued by a third party to the satisfaction of
                  Manwide Holdings, together with relevant documents to the
                  satisfaction of Manwide Holdings and sufficient to evidence
                  the guarantee ability of the third party, which warrants that
                  the property rights of Xiangzhang Garden are not subject to
                  any third party right of any nature and, in the event that
                  Manwide Holdings suffers any loss arising from any breach of
                  the guarantee, the third party shall compensate Manwide
                  Holdings severally and jointly with Jiu Sheng Investment;

            (5)   Both parties sign the confirmation letter on the completion of
                  the installation, exquisite decoration,

<PAGE>

                  furnishing and logo design of the part of Xiangzhang Garden to
                  be purchased by Manwide Holdings (logo design shall be
                  completed by Manwide Holdings with the assistance of Jiu Sheng
                  Investment);

            (6)   All maintenance arrangements for the part of Xiangzhang Garden
                  to be purchased by Manwide Holdings have been completed in
                  accordance with Article 15 hereof.

5.    Jiu Sheng Investment shall procure the satisfaction of all the six
      fundamental requirements under Clause 4 of this Article within thirty (30)
      days after receiving the notice sent by Manwide Holdings under Clause 2 of
      Article 12 hereof on altering the implementation of the transaction under
      this Article, otherwise Jiu Sheng Investment shall be liable for the
      payment of a default penalty for late delivery based on 0.05% of Renminbi
      fifty million per day to Manwide Holdings till all the fundamental
      requirements above are satisfied.

6.    Jiu Sheng Investment shall sign a standard "Shanghai Commodity Property
      Sale Contract" in the unified form used in Shanghai for the purpose of
      altering the registration ownership of the property and go through the
      real estate transfer procedures within ten (10) working days after
      receiving the notice (if any fundamental requirement under Clause 4 of
      this Article has not been satisfied, it shall be extended to the date on
      which all the fundamental requirements have been satisfied) sent by
      Manwide Holdings under Clause 2 of Article 12 hereof on altering the
      implementation of the transaction under this Article.

7.    When signing a standard "Shanghai Commodity Property Sale Contract" in the
      unified form used in Shanghai under Clause 6 of this Article, both parties
      shall sign a confirmation letter on pertaining interests of Xiangzhang
      Garden, which shall specify the principles as follows:

      (1)   Manwide Holdings is entitled to obtain pertaining interests of
            Xiangzhang Garden together with the entitlement to operating income
            therefrom under item (2) of this Clause after the completion of the
            alteration of the transaction under this Article;

      (2)   Pertaining interests of Xiangzhang Garden under item (1) include:

            (a)   The permanent entitlement to the usage, operation and
                  participation (including, but not limited to, the rights of
                  emplacing and gaining operating income, etc. from signs,
                  billboards, light-boxes or other kind of advertisement
                  carriers) of the whole covering of Xiangzhang Garden
                  (including the covering of the podium and the tower);

            (b)   The permanent entitlement to the usage, operation and
                  participation (including, but not limited to, the rights of
                  emplacing and gaining operating income, etc. from signs,
                  billboards, light-boxes or other kind of advertisement
                  carriers) of the whole external facade of the podium of
                  Xiangzhang Garden;

            (c)   The permanent entitlement to the usage, operation and
                  participation (including, but not limited to, the rights of
                  emplacing and gaining operating income, etc. of signs,
                  billboards, light-boxes or other

<PAGE>

                  kind of advertisement carriers, and of open parking space) of
                  the whole outdoor space of Xiangzhang Garden (from the outdoor
                  edge of the building to the curbside) and the external facade
                  of other buildings, structures or facilities and equipment
                  (include all facade and topside area) erecting thereon;

            (d)   The rights to name and rename the whole building of Xiangzhang
                  Garden (include the podium and the tower);

            (e)   If Jiu Sheng Investment sells the remaining properties to
                  others in future, it shall also ensure the transferees (except
                  for self-occupied transferees), to entrust Manwide Holdings
                  (or a third party designated by Manwide Holdings) for
                  operating management.

      (3)   Jiu Sheng Investment shall warrant that it shall not cause any
            damage or dispute on the pertaining rights of Manwide Holdings when
            it sells the remaining parts of Xiangzhang Garden in future.
            Meanwhile, when Jiu Sheng Investment sells the remaining parts, it
            shall obtain the undertakings or similar written agreements on
            waiver of any right claims for the pertaining interests of
            Xiangzhang Garden (the content of such undertakings or written
            agreements shall be approved by Manwide Holdings, and the authentic
            signed copies of which shall also be filed with Manwide Holdings).

8.    Jiu Sheng Investment agrees that upon signing of this Contract, it shall
      be responsible for ensuring the annex hereto headed "Letter of
      Undertakings and Warranties" to be signed by the corresponding principals
      of each party as required by Manwide Holdings, and then to take effect.

9.    Both parties confirm that wordings which have not been illustrated in
      particular hereof shall have the same meaning as in other Articles in this
      Contract; where there is any discrepancy between any provision in this
      Article 13 and those in other Articles hereof, this Article shall prevail
      for the interpretation or execution. Anything not covered in this Article
      shall be executed according to other related provisions hereof.

Article 14 Property Management

1.    Jiu Sheng Investment undertakes that, no matter Manwide Holdings purchases
      either the whole building of Xiangzhang Garden or part of which under this
      Contract, the property management right of the whole building of
      Xiangzhang Garden shall be vested in Manwide Holdings or other companies
      (affiliates or business partners of Manwide Holdings) otherwise specified
      by Manwide Holdings. Both parties shall sign the annex hereto headed
      "Xiangzhang Garden Property Management Right Entrust Agreement" before the
      Delivery Date hereunder, and Manwide Holdings or the other company
      designated by it shall be entitled to obtain all the property management
      right of Xiangzhang Garden in future thereunder.

2.    Both parties confirm that, since the Delivery Date hereunder, Manwide
      Holdings shall be immediately entitled to take over the property
      management function of Xiangzhang Garden, and to deal with all the issues
      relating to the property management of the building (including promotion
      and advertisement, soliciting tenancy, preparing and signing tenancy
      agreements, exercising the rights under lease, etc.) at its discretion,
      and to sign related agreements with and present necessary explanations to
      the public.

<PAGE>

3.    Both parties confirm that, if Manwide Holdings or another company
      designated by Manwide Holdings is unable to exercise the property
      management right hereunder for the time being due to a lack of
      qualification in property management, Jiu Sheng Investment shall give
      sufficient assistance to Manwide Holdings to ensure Manwide Holdings to
      exercise the property management right hereunder.

Article 15 Maintenance Arrangement

1.    Jiu Sheng Investment undertakes that, it will ensure Manwide Holdings to
      enjoy all the related maintenance service after the delivery of the
      Subject Property or part of Xiangzhang Garden. Such maintenance services
      include the maintenance obligations specified in the construction
      contracts between Jiu Sheng Investment and all the construction
      contractors involved in the construction of Xiangzhang Garden, and those
      not contracted but stipulated to be undertaken by the construction
      contractors under the national and local laws and regulations in respect
      of the quality assurance maintenance of a building construction project.

2.    To fulfill the undertakings mentioned in Clause 1 of this Article, Jiu
      Sheng Investment agrees that, within thirty (30) days after finishing the
      completion testing work of Xiangzhang Garden, it will procure each of the
      original construction contractors who assume respective obligations for
      the quality assurance maintenance of Xiangzhang Garden to sign a
      maintenance agreement with Manwide Holdings, so that Manwide Holdings can
      enjoy the maintenance rights under each of the construction contracts; or
      Jiu Sheng Investment shall present a letter of attorney or right transfer
      letter in respect of maintenance issues to ensure Manwide Holdings is
      entitled to claim the interests of maintenance or necessary assistances
      from relevant construction contractors. If, under the relevant national
      laws or project construction contracts, Jiu Sheng Investment is entitled
      to detain the maintenance fund that has not been advanced to the
      construction contractors, Jiu Sheng Investment shall pass such maintenance
      fund to Manwide Holdings.

Article 16 Mutual Assistance Obligation

1.    Jiu Sheng Investment and Manwide Holdings shall, on honest fiduciary
      basis, assist each other, if necessary, in performing its obligations
      hereunder and assist the other party in exercising its rights hereunder.

2.    Within three (3) days after signing of this Contract, Jiu Sheng Investment
      shall arrange necessary office premises for the project team appointed by
      Manwide Holdings at the construction site, so that the team representing
      Manwide Holdings can supervise all the remaining construction works till
      its completion.

3.    Both parties confirm that, after signing of this Contract, any
      construction contract regarding the construction of the Subject Property
      or such documents as equipment and material purchase contracts with third
      parties shall be reviewed and approved by the project team representing
      Manwide Holdings prior to the signing of which. After signing of this
      Contract, Jiu Sheng Investment shall seek approval by signature from the
      members representing Manwide Holdings before making construction payments
      by phases if the members representing Manwide Holdings so required.

<PAGE>

4.    To ensure a smooth progress of Xiangzhang Garden, either party shall not
      disclose the dealings under this Contract to the construction contractors
      or any third party before finishing the completion testing of the Subject
      Property.

5.    Both parties shall cooperate to report the consideration to, and deal with
      the transfer procedures with, the real estate transaction authorities.

6.    Both parties shall assist each other when Manwide Holdings takes over the
      property management function of Xiangzhang Garden, and Jiu Sheng
      Investment shall provide all the necessary assistances to ensure a smooth
      transfer of the property management right.

Article 17 Statement and Guarantee

1.    Jiu Sheng Investment makes the following irrevocable statements and
      guarantees to Manwide Holdings:

      (1)   Jiu Sheng Investment warrants that, Manwide Holdings may legally
            transfer or lease out the Subject Property (or part of Xiangzhang
            Garden) subject to relevant legal approval procedures;

      (2)   Jiu Sheng Investment shall ensure that no liability or right of any
            nature concerning the Subject Property will be created in favor of
            the construction contractors due to their construction works. In
            case of any economic loss of any nature suffered by Manwide Holdings
            as a result of any dispute between Jiu Sheng Investment and the
            construction contractors, Jiu Sheng Investment shall assume the
            liability arising from breaching this Contract and shall provide
            complete and adequate compensation;

      (3)   Jiu Sheng Investment is a company duly registered under the laws of
            People's Republic of China with limited liability in its legal
            existence, with the qualification of an independent legal person, a
            complete and independent legal status and legal capacity to sign and
            perform this Contract. Jiu Sheng Investment can also be taken as an
            independent party of legal proceedings;

      (4)   Before and upon signing of this Contact, there is no legal
            proceedings against Jiu Sheng Investment threatening or pending
            which may affect the fulfillment of obligations by Jiu Sheng
            Investment hereunder;

      (5)   The execution and the implementation of this Contract constitute no
            violation of any law, regulation and policy of the People's Republic
            of China;

      (6)   The execution and implementation of this Contract by Jiu Sheng
            Investment constitute no violation of any provision of its Articles
            of association, nor any stipulation in contracts or agreements
            signed with third parties; and

      (7)   The undertakings and guarantees made by Jiu Sheng Investment
            hereunder are true, accurate and complete, without any withheld or
            misleading information. Jiu Sheng Investment guarantees to
            compensate all the losses suffered by Manwide Holdings due to
            untruth, inaccuracy or incompletion of

<PAGE>

            the undertakings or guarantees made by it.

2.    Manwide Holdings makes the following irrevocable statements and guarantees
      to Jiu Sheng Investment:

      (1)   Manwide Holdings is a company duly registered under the laws of
            British Virgin Island with limited liability in its legal existence,
            with the qualification of an independent legal person, a complete
            and independent legal status and legal capacity to sign and perform
            this Contract. Manwide Holdings can be taken as an independent
            principal of legal proceedings;

      (2)   Upon the establishment of Pakli Property in future, Pakli Property
            will immediately become a company duly registered under the laws of
            People's Republic of China with limited liability in its legal
            existence, with the qualification of an independent legal person, a
            complete and independent legal status and legal capacity to sign and
            perform this Contract. Pakli Property can be taken as an independent
            principal of legal proceedings;

      (3)   The execution and the implementation of this Contract constitute no
            violation of any laws of British Virgin Island or the People's
            Republic of China;

      (4)   The execution and implementation of this Contract by Manwide
            Holdings constitute no violation of any provision of its Articles of
            association, nor any stipulation in contracts or agreements signed
            with third parties;

      (5)   The undertakings and guarantees made by Manwide Holdings hereunder
            are true, accurate and complete, without any withheld or misleading
            information. Manwide Holdings guarantees to compensate all the
            losses suffered by Jiu Sheng Investment due to the untruth,
            inaccuracy or incompletion of the undertakings or guarantees made by
            it; and

      (6)   Manwide Holdings shall be liable to pay each installment hereunder
            as scheduled and assist Jiu Sheng Investment in going through the
            procedures for the transfer of the real estate ownership of the
            Subject Property.

3.    Jiu Sheng Investment agrees that, upon signing of this Contract, it will
      immediately provide a copy of "Third Party Guarantee" to Manwide Holdings,
      whose content and guarantor shall be certified and confirmed by Manwide
      Holdings (If Manwide Holdings disagrees, Jiu Sheng Investment shall amend
      or alter it to the satisfaction of Manwide Holdings). The "Third Party
      Guarantee" shall be enclosed as an annex to this Contract and shall
      specify that the guarantor shall undertake the following responsibilities:

            (1)   To ensure Jiu Sheng Investment will satisfy the condition
                  precedents to the completion of the transaction under Clause 1
                  (4) of Article 11 hereof and undertake corresponding related
                  liability;

            (2)   To ensure Jiu Sheng Investment will satisfy the essential
                  requirements under Clause 4 (4) of Article 13 hereof and
                  assume corresponding related liability if Manwide Holdings
                  opts to execute the altered transaction under Article 13
                  hereof according to related stipulations hereof;

<PAGE>

            (3)   To assume the related liability for repayment jointly with Jiu
                  Sheng Investment in respect of the corresponding repayment
                  obligation of Jiu Sheng Investment when Manwide Holdings
                  withdraw this Contract at its discretion under the relevant
                  stipulations hereof; and

            (4)   To assume the related liability for compensation jointly with
                  Jiu Sheng Investment in respect of the payment of default
                  penalty for late delivery if Jiu Sheng Investment pays to
                  Manwide Holdings the accrued default penalty for late delivery
                  under relevant stipulations in Clause 2 of Article 9 hereof.

Article 18 Liability for Breach

1.    The Contract shall have legal binding effect on both parties upon signing,
      and each party shall strictly fulfill obligations hereunder and those
      under the annexes respectively, and assume its corresponding liabilities
      for breach.

2.    Both parties confirm that, upon signing of this Contract, Jiu Sheng
      Investment shall not sell all or any part of Xiangzhang Garden to any
      third party in any way, otherwise it will be taken as essential default.
      In such case, Manwide Holding shall be entitled to demand immediate double
      repayment of the performance bond from Jiu Sheng Investment.

Article 19 Project Cooperation Team

1.    For the purpose of a smooth performance of this Contract, including, but
      not limited to, such works as decoration and equipment deployment, both
      parties shall form a project team (members of which are set out in the
      annex hereto headed "List of Members of Project Team") within three (3)
      days after signing of this Contract to facilitate the completion of
      transactions hereunder.

2.    All the agreements or documents signed by a project term member appointed
      by both parties during the course of transactions contemplated under this
      Contract shall constitute automatically acts of the party he/she
      represents, and no common seal of the party he/she represents is needed.

Article 20 Dispute Settlement

The Contract is governed by laws and regulations of the People's Republic of
China. Parties hereto shall settle any dispute arising from, relating to or in
connection with this Contract through negotiation, and any dispute that cannot
be settled through negotiation shall be referred to the competent people's court
in Shanghai.

Article 21 Miscellaneous

1.    Both parties of this Contract are obliged to keep the confidentiality of
      the contents of this Contract and the signing thereof, and each of them
      shall also keep the confidentiality of all business information of the
      other party that come into its knowledge when implementing this Contract,
      failing which, it shall bear the legal consequences accordingly.

<PAGE>

2.    The captions and headings in this Contract are inserted for reference
      only, and shall in no case be used for or affect the interpretation of
      this Contract.

3.    Each party to this Contract enter into this Contract for lawful purposes.
      Articles in this Contract are severable and independent from one other
      (except for Articles, which are not independent from other Articles in the
      context of its content or original intention). If one or more Article(s)
      of this Contract become(s) invalid, illegal or unenforceable at any time,
      the validity, legality and enforceability of the remaining Articles shall
      in no way be effected, and both parties shall make every effort to
      conclude new Articles in lieu of the invalid, illegal or unenforceable
      Articles so as to achieve the business purposes in line with the original
      Articles to a substantial extent.

4.    Nothing in this Contract shall be construed to create or evidence an
      agency, partnership or any other joint venture relationship between the
      parties hereto. In the event of a conflict between the terms of this
      Contract and any provision of other written agreements, the terms of this
      Contract shall prevail.

5.    Notice: Any notice, petition, request and other communication required by
      or made pursuant to this Contract shall be in writing and be served in
      following manners:

   To Jiu Sheng Investment:

      Send to:

      Address:    Room 4F418, 1250 Xinza Road, Jing An District, Shanghai

      ZIP Code:   200042

      Fax:        0086 - 21 - 52130641 or 0086 - 21 - 62565927

      Or send to:

      Address:    Unit A, 16th Floor, China Merchants Building, 118 Jianguo
                  Road, Beijing

      ZIP Code:   100022

      Fax:        0086 - 10 - 65674195

   To Manwide Holdings:

      Send to:

      Address:    8/F Paul Y Centre, 51 Hung To Road, Kwun Tong, Kowloon,
                  Hong Kong

      Fax:        00852-25420298

      Such notice or other communication shall be deemed to be duly served
      immediately upon sending by fax, or at the time of delivery if delivered
      by hand, or five (5) days after deposited in the mailbox if sent by post.

6.    Any party not requesting the other party to perform its duty under this
      Contract shall not affect its right to do so thereafter, and any party not
      pursuing the other party's liability for violating any Article of this
      Contract shall not be deemed as a waiver of the Article. Any renunciation
      of any right shall be made in writing.

<PAGE>

7.    Annexes hereto comprise the following documents, which are integral parts
      of, and have the same legal effect as, this Contract:

            (1)   List of Inspection Documents

            (2)   List of Construction Works and Equipments Ordered

            (3)   Presale Arrangement Agreement

            (4)   Arrangement on Transfer of Payers of Performance Bond

            (5)   Area Schedule of Xiangzhang Garden

            (6)   Layout Plan of Each Floor

            (7)   Delivery Standard of Installment Works

            (8)   Delivery Standard of Exquisite Decoration

            (9)   Options in Sample House and Decoration Equipment Arrangement

            (10)  Furniture Appliance Equipment Standard

            (11)  List of Project Handover Documents

            (12)  Subject Property after Alteration

            (13)  Letter of Undertakings and Warranties

            (14)  Xiangzhang Garden Property Management Right Entrust Agreement

            (15)  Third party Guarantee

            (16)  List of Members of Project Team

8.    Although all the annexes hereto are integral parts of this Contract, each
      annex and its provisions (except for Articles that are not independent
      from others in the context of its content or original intention) shall be
      deemed to be independent from the text of this Contract and annexes
      thereto. After the completion of the real estate transaction contemplated
      under this Contract, parties thereto shall strictly implement its
      undertakings and obligations under this Contract and its annexes, till all
      rights and obligations hereunder are exercised or performed. Neither party
      thereto shall declare unilaterally that the text of this Contract or any
      annex thereto has lost its legal validity.

9.    Subject to the satisfaction of the following conditions, this Contract
      shall come into effect once signed by Manwide Holdings and Jiu Sheng
      Investment:

      (1)   Manwide Holdings and Jiu Sheng Investment have completed the
            appropriate internal approving (including approval at the general
            meeting and the board) procedures in relation to the real estate
            transaction contemplated under this Contract and the signing of this
            Contract;

      (2)   The stock exchange in Hong Kong and other regulatory bodies have
            authorized China Strategic Holdings Limited ("China Strategic
            Holdings"), the ultimate holding company of Manwide Holdings, to
            issue announcement and circular in respect of issues relating to
            this Contract.

      (3)   Transactions contemplated under this Contract have been approved by
            resolution at the general meeting of China Strategic Holdings;

      (4)   All annexes hereto set out in Clause 7 of this Article have been
            signed;

<PAGE>

      (5)   Jiu Sheng Investment has submitted to Manwide Holdings the originals
            of the following four documents:

                  (a)   a document sufficient to prove that Jiu Sheng Investment
                        has paid in full in due time the interests on the loan
                        amounting to Renminbi one hundred and seventy million
                        (RMB170 million) to China Construction Bank Beijing
                        Branch Chaoyang Sub-branch and the borrowing contract
                        has not been breached;

                  (b)   the document issued by China Construction Bank Beijing
                        Branch Chaoyang Sub-branch and China Minsheng Banking
                        Corporation Limited consenting Jiu Sheng Investment and
                        Manwide Holdings to sign this Contract and carry out the
                        real estate transaction contemplated under this
                        Contract;

                  (c)   the latest financial statement, which shall be stamped
                        with the common seal, of Cheukking Investment Holdings
                        Company Limited (the effective controller of Jiu Sheng
                        Investment, also a party to the annexes hereto headed
                        "Letter of Undertakings and Warranties" and "Third Party
                        Guarantee") signed by the authorized proxy of Manwide
                        Holdings, which gives a true status of the recent net
                        asset of Cheukking Investment Holdings Company Limited;

                  (d)   the board of Cheukking Investment Holdings Company
                        Limited has approved the board resolution to sign the
                        annexes hereto headed "Letter of Undertakings and
                        Warranties" and "Third Party Guarantee".

10.   Both parties confirm that if this Contract does not take effect on or
      before 31 December 2004 for whatever reasons, this Contract shall
      automatically lapses since from 1 January 2005. Jiu Sheng Investment shall
      refund all amount paid by Manwide Holdings (together with interest
      calculated on the prevailing bank lending rate) within five (5) banking
      days after the date on which this Contract lapses.

11.   Both parties confirm that, in the event that Pakli Property is lawfully
      established after signing of this Contract, each party shall, within
      fifteen (15) days after Pakli Property is established (subject to the
      establishing date set out in the business license to be granted to Pakli
      Property), submit to the authorized representative of Pakli Property
      originals of this Contract (together with all annexes) to be signed by the
      authorized representative and stamped with the common seal of Pakli
      Property. Commencing from the date (the "Subject Altering Date") on which
      all originals of this Contract (together with all annexes) are signed by
      authorized representatives of Pakli Property and stamped with the common
      seal of Pakli Property, the purchaser under this Contract shall be
      transferred from Manwide Holdings to Pakli Property, who shall take over
      all rights and obligations under this Contract (together with all annexes)
      and is entitled to make right petitions or claims against Jiu Sheng
      Investment in respect of any issue relating to this Contract occurred
      within the period from the date on which this Contract is signed (i.e. the
      signing date) to the Subject Altering Date in accordance with this
      Contract (or any annexes thereof), and Jiu Sheng Investment shall not
      oppose against such right petitions or claims in the excuse that Pakli
      Property does not have legal status as it

<PAGE>

      has not been lawfully established when such issue occurs.

12.   The Contract (together with all annexes thereto) shall be made in four
      originals, two (2) for each of Jiu Sheng Investment and Manwide Holdings.
      Subject to the lawful establishment of Pakli Property, each of Jiu Sheng
      Investment and Manwide Holdings shall, within seven (7) days after the
      establishment date of Pakli Property (subject to the establishing date set
      out in the business license to be granted to Pakli Property), submit to
      the authorized representative of Pakli Property the two originals of this
      Contract (together with all annexes) held by it to be signed by the
      authorized representative and stamped with the common seal of Pakli
      Property. The four originals of this Contract stamped with the common seal
      of Pakli Property shall then be held by Jiu Sheng Investment and Pakli
      Property (two for each) and shall be equally authentic.

<PAGE>

Confirmed and signed by:

Shanghai Jiu Sheng Investment Company Limited

Representative: _____________________

Manwide Holdings Limited

Representative: _____________________

Company Name: ______________________(the name as shown in the business license
of Pakli Property)

Representative: _____________________

Date: ________________

(This date shall be the subject altering date provided in this Contract).

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