Document:

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                                                                   EXHIBIT 10.26

                                                                         ANNEX A

                       RESEARCH AND DEVELOPMENT AGREEMENT

                                    THE SIGN

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                       RESEARCH AND DEVELOPMENT AGREEMENT

                              THE SIGN 1.0 VERSION

                                  JULY 14, 2004

               SHENGQU INFORMATION TECHNOLOGY (SHANGHAI) CO., LTD.

                SHANGHAI SHENGJIN SOFTWARE DEVELOPMENT CO., LTD.

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THIS RESEARCH AND DEVELOPMENT AGREEMENT (the "Agreement"), is made and entered
into as of ________, 2004 (the "Effective Date") by and between:

SHENGQU INFORMATION TECHNOLOGY (SHANGHAI) CO., LTD. ("Shengqu"), with offices at
Room 638-7, Building 2, 351 Guoshoujing Road, Zhangjiang Hi-Tech Park, Shanghai,
the People's Republic of China (the "PRC"); and

SHANGHAI SHENGJIN SOFTWARE DEVELOPMENT CO., LTD. ("Shengjin"), with offices at
Room 621, Building 3, 200 Zhangheng Road, Zhangjiang Hi-Tech Park Shanghai, the
PRC.

                                    RECITALS

WHERES, Shengqu desires to sponsor research for an online game known as The Sign
(the "Game") in accordance with the scope of work as set out in Annex 1
("Statement of Work") to this Agreement; and

WHERES, Shengjin has the facilities, equipment and employees to provide research
services, and Shengjin wishes to carry out the research and provide the results
of the work to Shengqu as set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and other terms and
conditions contained herein, and other good and valuable consideration, the
sufficiency and receipt of which are hereby acknowledged, the parties hereby
agree as follows:

1.    RESEARCH PROJECT

1.1   In developing the Game, Shengjin will use its best efforts to include the
      effects set forth below:

1.1.1 Weather Effects: rain, snow, daytime and nighttime and moving fog system.

1.1.2 360 degree camera angles that can be rotated and operated.

1.1.3 Scene effects: the waving of the grass, flying butterflies in the grass
      flutters, the waving of trees branches and leaves, the floating of flags,
      the waving of dandelions, flying fireflies at night, water ripple effect,
      shadow effect of torches, semitransparent effect of buildings when
      blocked, no roofs of buildings when entered and basic altitudes
      fluctuations of territories.

1.1.4 Technical effects: physical attack, magic attack (missile, fixed position,
      duration on fixed position), registered users, server selections,
      character creation, chat system, channel system, guild message, abandoning
      and picking up of items, quest system (show messages of non-player
      characters, choose the options), trade system.

1.1.5 Magic effects: fireball with orbit, downpour of lightning and aura effect
      around the characters.

1.2   The software for the Game will use a 3D engine that requires higher
      hardware specifications in order to display the 3D graphics. The servers
      for the Game will adopt the cluster server

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         technology during the development period, which can support any numbers
         of servers to make up a cluster, in order to increase the number of
         players that can play the game at the same time. The server system
         allows a large quantity of scenes to be created, meaning the scenes and
         rules of the game can be updated according upon the request of players
         or for other reasons. For maintaining fairness of the game, avoidance
         of unnecessary conflicts between old players and new players, servers
         will not have any communication function, which means the game
         information of each server will not be able to be used by other
         servers.

1.3      The hardware environment for the game will be IBM PC and IBM-compatible
         PC. CPU requirement will be Celeron 500 or above. The lowest
         requirement of video card will be MX400 3D accelerator card or
         compatible 3D cards. The lowest memory requirement will be 128M. The
         lowest requirement of hard disk will be 1G. The internet speed
         requirement will be modem or XDSL with more than 33.6Kbps connection.
         The operation system will be MS WIN9X, ME, WIN XP, WIN2000 and Windows
         NT 4.0 or above versions.

2.       TECHNICAL INDICATORS AND PARAMETERS OF THE PROJECT

2.1      Game research and develop procedure includes two independent projects:
         the network-side and engine-side.

2.2      The project is divided into two software projects, a 3D engine project
         called "Speed Engine" and a logic project called "Game Client". The
         Game shall adopt Microsoft(R) Visual C ++, NET and Microsoft(R).
         DirectX 9.0. Microsoft(R), Direct 3D, WinSock2.0 and Direct Sound
         DirectInput will also be used in connection with the research project.

2.3      The main technical indicators and parameters of the project shall be as
         follows:

2.3.1    Support skeleton animation and oriented animation at the same time.

2.3.2    Display the dynamic effects of lights and shadows through a real-time
         calculation system.

2.3.3    Support a switch system between low-resolution texture resources and
         high-resolution texture resources.

2.3.4    Use a dynamic lighting hardware mode.

2.3.5    Support a multi-level 3D senior setting to meet the requirement of
         different computers.

2.3.6    Carry on compatible test and judging code for various video cards.

2.3.7    Read multi-thread data resource.

2.3.8    Support the alpha channel display for large-scale TGA and
         semitransparent display for models.

2.3.9    Adopt the preloading technology for big-map scenes.

2.3.10   Include 3D game perspective capability. The first visual angle will be
         an oblique visual angle of 45 degrees, with the game characters are in
         the center of the screen with mouse wheel to adjust near and far. The
         mouse wheel will be able to move to the left or right edge of the
         screen with 360 degree free rotating. The second visual angle will be a
         horizontal visual angle, which users can switch to by pressing the tab
         key on their keyboard.

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3.    DEVELOPMENT SCHEDULE

The time schedule for the research project is set forth in Annex 1 to this
agreement.

4.    PAYMENT

4.1   The total payment Shengqu shall pay to Shengjin is estimated RMB
      6,000,000.

4.2   Shengqu will notify Shengjin when open testing of the Game begins and
      Shengjin will provide Shengqu with an initial invoice. Shengqu will then
      pay RMB 500,000 (the "Initial Payment") to Shengjin within thirty (30)
      days of receipt of Shengjin's invoice.

4.3   Shengqu will notify Shengjin when the Game is commercially launched and
      Shengjin will provide Shengqu with an additional invoice. Shengqu will
      then pay RMB 1,500,000 (the "Second Payment" and together with the Initial
      Payment, the "Research Fee") to Shengjin within 90 days of receipt of the
      additional invoice.

4.4   After the Game has been commercially launched, Shengqu will pay to
      Shengjin a monthly royalty fee (the "Royalty Fee" and together with the
      Research Fee, the "Total Fee") equal to: (i) 10% of the net income derived
      from the sale of pre-paid game card points for the Game if the average
      concurrent user for the month exceeds 50,000 or (ii) 5% of the net income
      derived from the sale of pre-paid game card points for the Game if the
      average concurrent users for the month is less than 50,000. The Royalty
      Fee shall initially be offset against the Research Fee, with Shengqu
      paying the Royalty Fee to Shengjin only to the extent that the aggregate
      Royalty Fee exceeds the Research Fee.

4.5   Shengqu will provide Shengjin with an income statement setting forth the
      net income derived from the sale of pre-paid game cards during a
      particular month by the 15th day of the next month. Shengqu will pay the
      Royalty Fee for a particular month, if any, by the 30th day of the next
      month.

4.6   The parties agree Shengqu has no obligation to pay the Royalty Fee for the
      first 30 days following the commercial launch of the Game.

5.    FULFILLMENT

5.1   The term of this Agreement shall be for a period of twenty four (24)
      months begging on March 25, 2003.

5.2   Upon the completeness of the Game's developing work, Shengjin will deliver
      the source code compact disc of the Game and relevant technological files,
      records and documents to Shengqu.

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6.    COOPERATION AND GUIDANCE OF THE PROJECT

Shengjin shall use its best efforts to resolve any technical problems in
connection with the Game upon the request of Shengqu.

7.    OWNERSHIP OF THE PROJECT

The rights to any technologies, processes, patentable rights or material that
can be copyrighted that is developed in connection with this research project
shall belong to Shengqu.

8.    THE CRITERIA AND METHODS OF TESTING

Shengqu will organize the testing and acceptance of this project and provide a
certification after the Game reaches the technical indicator and parameter set
forth in Section 2 and Annex 2.

9.    GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of
the PRC.

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INWITNESS WHEREOF, Shengqu and Shengjin have each caused this agreement to be
executed and delivered by a duly representative, officer or agent, effective as
of the effective date hereof.

SHENGQU INFORMATION TECHNOLOGY (SHANGHAI) CO., LTD.

By: /s/ Tianqiao Chen
   __________________________
Name:  Tianqiao Chen
Title: Executive Director

SHANGHAI SHENGJIN SOFTWARE DEVELOPMENT CO., LTD.

By: /s/ Qunzhao Tan
   ___________________________
Name:  Qunzhao Tan
Title: Supervisor

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                                                                         Annex 1

Development Schedule

Commencing on March 25, 2003

Milestone 1: Completed by March 25, 2003:(First Phase)

<TABLE>
<S>                                                                                       <C>
Program:

Outline the game engine and develop the technical interface.

Complete parts of the frame documents of the 3D engine (graphical client
software).                                                                                One or two
                                                                                             Weeks
Make the maps as grids in the game to meet the requirements of the present
servers.

Complete the dynamical load and release map grids function. Complete amendment
of map boarders and the necessary support for large maps with a size of over
2048.

Complete 3D MAX 5.0 new version plug-in of character animation output (including
skeletons, animations, modeling).

Complete character display tools (including skeletons, animations, modeling data
loading, action selection, modeling selection).

Change dress effect of the weapon /costume model texture.

Complete weather effects: rains, snows, daytime and night time, real time
changing colorful fog system.

Complete 360 degrees of camera angles that can be rotated and operated; in
advanced mode, the camera angles can be adjusted by high/low angels.

Realize advanced effects of sky and floating clouds.

Complete 360-degree effects: flying butterflies, the weaving of dandelion, the
flying fireflies at night, shadow effects of torches, the semitransparent effect
of buildings when blocked.

Model de-polygon technology of 3D and improve the rendering speed of the game.

Decrease the number of polygons, according to the distance between camera and
scene/character.

Complete 3D MAX 5.0 plug-ins of character modeling/action input.

Modify the codes of present game engine (character part).                                 Milestone 1
</TABLE>

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<TABLE>
<S>                                                                                      <C>
Demonstration effects of Milestone 1:

Standard demonstration program of 3D client software.

A complete demonstration of character costume changes and attack new spawned
NPC.

Edit and show a super large-scale space (3x3 maps scenes).

Float sky effects from looking down angel.

Realize physical attacking, magic attacking (missile, fixed position, duration
on fixed position).

Complete magic effects: fireball with orbit, downpour of lightning, aura effect
around the characters, etc.
</TABLE>

Milestone 2: Completed by May 25: (Second Phase)

<TABLE>
<S>                                                                                       <C>
Finish the procedure documents of the network messages and response control.

Finish the document of the base part of the engine (base part, amendment part,
character system, scene).

Complete dynamic light & shadow system:

Offer strong vision effect and environment reality to the player who has best
setting, and bring a new highlight to the engine. Complete aperture effects
around character, and firebrand illuminate the surrounding environment and light
glittering.

Complete footprint effects: major players walk on the sand or glass ground,               Program
leaving a trail of footprint which gradually disappears.

Complete sandstorm and falling-leafage effects: the natural condition of the
desert.

Complete the optimization of water surface effects.

Optimize mapping animation on the water surface, and open the flash of the water
surface.
Complete operation performance monitoring module.
Notice the players through the configuration of hardware and FPS and make the
players run at a suitable speed.

Mini-map and special points to indicate other players. For example, yellow
points shall mean team players, blue points shall mean others and red points
shall mean spouse.

Complete the test program of operation environment of video card / OS.
Analyze the environment and compatibility and make sure the compatibility of
</TABLE>

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<TABLE>
<S>                                                                                       <C>
the client software is powerful enough.
Make sure four kinds of video cards (Nvida, ATI, voodoo and sis which be usually
integrated) running properly.
Complete scene movie: flying eagles, elves around the major characters.
Optimization of smooth turning when walking.

Complete "system option" function and interface.
Amend the interfaces of trading, according to The World of Legend.
Optimize the lighting of engine.
</TABLE>

<TABLE>
<S>                                                                                      <C>
Milestone 3: Completed by June 28: (Third Phase)

Complete sandstorm effects.

Operate performance monitoring module.
Notice the players through the configuration of hardware and FPS, and make the
players run at a suitable speed.

Analyze the respective time cost of rendering territory surface, items,
characters, attributions, interfaces, find out the way to optimize.
Complete large-scale rendering test, stability test of over 200 characters on the same
screen.

Make special skills editor.                                                              Program

Complete all present effects and functions.
Operate DEMO programs of video cards / system.
Return to the system configuration when demo is finished, and acquiring the bug
report and returning to servers.

Finish the modification of file format and layout of client-side directories (package
of source files).
Complete new client-side directory and utilization.
Name of cpp files.
Name of files.

Milestone 3:                                                                             Milestone 3

Complete Demo of client-side (realize basic controls).

Data collection servers must complete the function to collect bugs report from
users.

Improve waling, running, emotion, attacking controls.
</TABLE>

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Company-internal test is started dated November 28, 2004:

<TABLE>
<CAPTION>
Milestone              Description
---------              -----------
<S>                    <C>
                       Complete physical attacks, magic attack (missile, fixed
                       position, duration on fixed position), user registration,
                       server selection, character creation, chatting system,
                       channel system, guild information, dropping and picking
                       up items, quest system (NPC words, answers options), trade system.

November 28, 2003      Complete effects of character: changing of costumes of five body
                       parts, changing of weapons, moves including attack, walk, etc.

                       Complete magic effects: fireball with orbit, downpour of lightning, aura effect
                       around the characters, etc.

                       Complete other basic functions of close testing version of MMORPG.

Close test version,
                       System integration, debugging is successful, client software program shall be
December 25, 2003      finished, including auto-patch programs.

January 29, 2004
CD-ROM of client-      Open testing
side finished
</TABLE>

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                                                                         Annex 2

THE CRITERIA AND METHODS OF TESTING

1)    Status of the Game software: Software development shall meet the
      requirement functions of the Game and can support future version upgrades,
      improvement of functions and modifications.

2)    Status of the database software: can maintain (i) character information
      for 200,000 active players on a single cluster and (ii) user accounts
      information without restriction in a single district.

3)    Status of network platform: use self-developed Window Socket communication
      module completed and can support the stable communication of 300
      connections concurrently.

4)    Plan: Through plan document, the basic structure and different systems of
      the game are established and the plan is realized through the function
      characteristic and/or performance characteristic.

5)    Graphics of the game: Game graphics accord with Game's confirmed whole
      style, design and make, confirms and integrated from the procedure through
      the art designer, have well realized the demand that is planned.

6)    Shengqu's product management center shall be responsible for the test of
      the Game, and submit the bugs and defects reports to Shengjin. Shengjin
      shall amend the Game until Shengqu confirms the performance with a written
      consent.

      Procedure including:

    i.   Shengqu shall re-load all the data and tables into database, and then
         conduct the complete test. Shengqu shall check whether the game is
         under proper operation, and all settings of data tables are correct or
         not.

    ii.  Designer shall test the functions one by one according to the function
         lists until confirming all the functions are realized according to the
         related document.

    iii. Shengqu shall make sure all fatal bugs are resolved.

    iv.  Shengqu shall use test programs to detect the operation of client
         software and server software, and ensure no problems such as memory
         leaking or other fatal defects occur during two consecutive days.

    v.   All documents are described properly.

    vi.  Shengqu shall manufacture the installing CD, executive regular
         procedures and operation to make sure the software can be installed and
         run properly.

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                                                                   EXHIBIT 10.27

                                                                         ANNEX B

                ONLINE GAME DISTRIBUTION AND SERVICE AGREEMENT I

                                     THE AGE

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                ONLINE GAME DISTRIBUTION AND SERVICE AGREEMENT I

                                     THE AGE

                                  JULY 14, 2004

           SHANGHAI SHENGPIN NETWORK TECHNOLOGY DEVELOPMENT CO., LTD.

               SHENGQU INFORMATION TECHNOLOGY (SHANGHAI) CO., LTD.

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THIS ONLINE GAME DISTRIBUTION AND SERVICING AGREEMENT (this "Agreement") is
entered into as of July , 2004 ("Effective Date") by and between:

(1)   SHANGHAI SHENGPIN NETWORK TECHNOLOGY DEVELOPMENT CO., LTD., a corporation
      organized and existing under the laws of the People's Republic of China
      (the "PRC") and having its registered address at Room 403-A, 727
      Zhangjjiang Road, Pudong New Area, Shanghai, the PRC ("Shengpin"); and

(2)   SHENGQU INFORMATION TECHNOLOGY (SHANGHAI) CO., LTD., a corporation
      organized and existing under the laws of the PRC and having its registered
      address at Room 638-7, Building 2, 351 Guoshoujing Road, Zhangjiang
      Hi-Tech Park, Shanghai, the PRC ("Shengqu").

                                    RECITALS

WHEREAS, Shengpin engages in the business of developing, distributing and
selling computer games, including online games played by multiple users;

WHEREAS, Shengqu engages in the business of the operating, publishing and
selling online games;

WHEREAS, Shengpin desires to grant Shengqu (i) a license to distribute and sell
an online game known as The Age (the "Game", as defined in clause 1.4) in
mainland China and Hong Kong Special Administrative Region (the "Territory") and
(ii) a right to manage and operate servers for the Game, to provide technical
support to users of the Game, to bill users, and to provide marketing services,
each in the Territory (the "Services"); and

WHEREAS, Shengqu desires to distribute and sell the Game and to provide the
Services within the Territory and/or to grant a sublicense to do so to a third
party, all in accordance with the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the premises and the mutual consideration
received and to be received pursuant to this Agreement, the parties agree as
follows:

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1.    DEFINITIONS.

In this Agreement, unless the context otherwise requires, the following
expressions shall have the meanings set forth below:

1.1   "Business Day" shall mean any day other than a Saturday, a Sunday or a
      legal holiday in the PRC.

1.2   "Client Software" shall mean software sold, provided or distributed to the
      users and therefore, to be loaded onto the user's personal computer.

1.3   "Server Software" shall mean system software and a proprietary database
      (including the content and records located in such database) located on
      servers connected to the Internet.

1.4   "Game" shall mean an online game developed by Shengpin known as The Age,
      which can be played by a user with other users by installing the Client
      Software onto a user's computer and then accessing the Server Software
      connected to the Internet.

1.5   "Intellectual Property" shall mean any and all (by whatever name or term
      known or designated) tangible and intangible and now known or hereafter
      existing (a) rights associated with works of authorship throughout the
      universe, including, but not limited to, copyrights (including without
      limitation, the sole and exclusive right to prepare "derivative works of
      the copyrighted work and to copy, manufacture, reproduce, distribute
      copies of, modify, perform and display the copyrighted work and all
      derivative works thereof), moral rights (including without limitation any
      right to identification of authorship and any limitation on subsequent
      modification) and mask-works; (b) rights in and relating to the protection
      of trademarks, service marks, trade names, goodwill, rights of publicity,
      merchandising rights, advertising rights and similar rights; (c) rights in
      and relating to the protection of trade secrets and confidential
      information; (d) patents, designs, algorithms and other industrial
      property rights and rights associated therewith; (e) other intellectual
      and industrial property and proprietary rights (of every kind and nature
      throughout the universe and however designated) relating to intangible
      property that are analogous to any of the foregoing rights (including
      without limitation logos, rental rights and rights to remuneration),
      whether arising by operation of law, contract, license or otherwise; (f)
      registrations, applications, renewals, extensions, continuations,
      divisions or reissues thereof now or hereafter in force throughout the
      universe (including without limitation rights in any of the foregoing);
      and (g) rights in and relating to the sole and exclusive possession,
      ownership and use of any of the foregoing throughout the universe,
      including without limitation, the right to license and sublicense, assign,
      pledge, mortgage, sell, transfer, convey, grant, gift over, divide,
      partition and use (or not use) in any way any of the foregoing now or
      hereafter

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      (including without limitation any claims and causes of action of any kind
      with respect to, and any other rights relating to the enforcement of, any
      of the foregoing).

2.    DISTRIBUTION LICENSE

2.1   Shengpin grants Shengqu an exclusive license to distribute and sell the
      Game and its peripheral products in the Territory, and a right to grant a
      sublicense to a third party. In addition, Shengpin grants Shengqu a
      license to use any and all of Shengpin's trademarks, whether now possessed
      by Shengpin or hereafter acquired, in connection with the distribution and
      sale of the Game and its peripheral products in the Territory, and a right
      to sublicense such trademarks to a third party.

2.2   Shengqu shall, during the term of this Agreement, diligently and
      faithfully provide the Services, distribute and sell the Game and its
      peripheral products in the Territory and shall use its best endeavors to
      maintain the goodwill of Shengpin in the Territory. Shengqu shall leave in
      position and not cover or erase any notices or other marks (including,
      without limitation, details of patents or notices that a trademark design
      or copyright relating to the Game is owned by Shengpin or a third party)
      which Shengpin may place or affix to the Game.

2.3   During the term of this Agreement, Shengqu shall not sell, sublicense,
      export or assist in or be a party to the export of the Game outside the
      Territory.

3.    INTELLECTUAL PROPERTY RIGHTS

3.1   Shengpin expressly covenants and warrants that it has good title to the
      Game, Client Software, Server Software and the right to license their use
      to Shengqu free of any proprietary rights of any other party or any other
      encumbrance whatsoever.

3.2   Shengpin acknowledges that ownership rights in all data and data files
      (including, but not limited to, user data, data recorded and stored in the
      game database, connection log, billing log, chatting log and other related
      data) which are generated by the servers during operation of the Game
      within the Territory, and the contents of related documentation, and
      Intellectual Property Rights therein or associated therewith, will remain
      with Shengqu, who will have the exclusive right to protect the same.

3.3   Shengqu acknowledges that the Game, in its original and/or localized form
      and any part thereof, the game engine, the Client Software, the Server
      Software, and the contents of related documentation are proprietary in
      nature and that Shengpin claims all related Intellectual Property Rights
      granted by or

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      available under law therein. Title and sole ownership rights in and to the
      Game, in its original and/or localized form and any part thereof, the game
      engine, the Client Software, the Server Software, and the contents of
      related documentation, and Intellectual Property Rights therein or
      associated therewith, will remain with Shengpin, who will have the
      exclusive right to protect the same.

3.4   Shengqu agrees to report to Shengpin any known infringements, illegal uses
      or misuses of the Intellectual Property Rights of Shengpin in connection
      with the Game in its original and/or localized form and any part thereof,
      the game engine, the Client Software, the Server Software, and the
      contents of related documentation in the Territory. Shengqu agrees to
      assist Shengpin in enforcing or obtaining protection of such items and
      acknowledges that Shengpin shall have the sole right to bring a legal
      action or suit for infringement thereof. Such assistance shall be at
      Shengpin's expense unless the matter to which such assistance applies
      arises out of or from or is related in any way to the breach by Shengqu of
      any term or condition of this Agreement or by Shengqu's willful
      misconduct, in which case such assistance shall be at Shengqu's expense.

4.    INITIAL PAYMENT

4.1   Shengqu agrees to pay to Shengpin an initial licensing fee of RMB
      2,000,000 for the rights granted under this Agreement (the "Initial
      Payment"). The Initial Payment shall be non-refundable, except in the
      event that Shengpin breaches the Agreement.

4.2   Shengpin shall provide with Shengqu the receipt by the 15th day after
      Shengqu makes such payment.

5.    MONTHLY ROYALTY PAYMENT

      Shengqu shall make monthly royalty payment to Shengpin as set forth:

5.1   Shengqu shall pay to Shengpin 20% of the revenues received in connection
      with operating the Game.

5.2   Shengqu shall provide an income statement for each month to Shengpin for
      its review and confirmation by the 10th day of the following month.

5.3   Shengqu shall pay to Shengpin the monthly royalty payment for each month
      by the 30th day of the month after the month in which Shengpin confirms
      the income statement under Clause 5.2.

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5.4   Shengpin shall provide Shengqu the receipt for a monthly royalty payment
      by the 15th day after Shengqu makes such monthly royalty payment.

5.5   The monthly royalty payment shall initially be offset against the Initial
      Payment, with Shengqu paying the monthly royalty payment to Shengpin only
      to the extent that the aggregate monthly royalty payment exceeds the
      Initial Payment. Shengqu shall have no obligation to pay the monthly
      royalty payment for the first 30 days following the commercial launch of
      the Game.

5.6   Shengqu shall have no obligation to pay the monthly royalty payment and
      have right to terminate this agreement at any time, in the event that the
      average concurrent users for each month of the Game are less than 20,000
      during six concurrent months after the Game has been commercially
      launched.

6.    TERM

The term of this Agreement shall be for a period of twelve (12) months begging
on May 1, 2004.

7.    RIGHTS ON TERMINATION

Upon termination of this Agreement:

7.1   All of Shengqu's rights with respect to the Game, in its original and/or
      localized form and any part thereof, the game engine, the Client Software,
      the Server Software, the tools, and the codes will automatically and
      immediately terminate, and Shengqu shall immediately cease to use the Game
      in its original and/or localized form and any part thereof, the game
      engine, the Client Software, the Server Software, the tools, and the
      codes, and shall destroy or return (at Shengpin's option) any materials
      representing the same to Shengpin, along with a written confirmation of
      destruction or return, signed by an officer of Shengqu.

7.2   Any termination of this Agreement shall not affect any rights and
      obligations accrued as of the date of the termination. For the avoidance
      of doubt, any monthly royalty payment accrued prior to the termination
      shall be payable notwithstanding the termination and the payment shall be
      governed to the same extent by the terms of monthly royalty payment under
      this Agreement.

8.    DEFAULT

8.1   For the purposes of this Agreement, a party shall be in default if (i) it
      materially breaches a term of this Agreement causing serious harm to the
      goodwill and advantages of the other party, and such breach

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      continues for a period of sixty (60) days after the party committing the
      breach has been notified of the breach, or (ii) it become insolvent.

8.2   Upon occurrence of an event of default as described in the clause 8.1, the
      party not in default may immediately terminate this Agreement by giving
      written notice to the party in default. The rights and remedies provided
      to the parties in this Clause shall not be exclusive and are in addition
      to any other rights and remedies provided by this Agreement or at law or
      in equity.

9.    INDEMNIFICATION

9.1   Shengqu shall indemnify, defend and hold Shengpin and its affiliates,
      directors, officers, employees, shareholders, and agents harmless from and
      against any and all claims, losses, liabilities, costs and expenses
      arising out of any third-party claim relating to:

      9.1.1 Any violation by Shengqu of any of the provisions of this Agreement;
            and

      9.1.2 Any gross misconduct or intentional acts or omissions on the part of
            Shengqu or its employees or agents.

9.2   Shengpin shall indemnify, defend and hold Shengqu and its affiliates,
      directors, officers, employees, shareholders, and agents harmless from and
      against any and all claims, losses, liabilities, costs and expenses
      arising out of any third-party claim relating to:

      9.2.1 Any violation by Shengpin of any of the provisions of this
            Agreement; and

      9.2.2 Any gross misconduct or intentional acts or omissions on the part of
            Shengpin or its employees or agents.

9.3   Indemnification procedure shall be as follows:

      9.3.1 A party seeking indemnification (the "Indemnified Party") will
            promptly notify the other party (the "Indemnifying Party") in
            writing of any claim for indemnification.

      9.3.2 The Indemnifying Party will, if requested by the Indemnified Party,
            give assistance to the Indemnified Party in defense of any claim.

                                       8
<PAGE>

      9.3.3 The Indemnified Party will have the right to consent to the entry of
            judgment with respect to, or otherwise settle, an indemnified claim
            with the prior written consent of the Indemnifying Party.

10.   GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of
the PRC.

                                       9
<PAGE>

IN WITNESS WHEREOF, Shengpin and Shengqu have each caused this Agreement to be
executed and delivered by a duly authorized representative, officer or agent,
effective as of the Effective Date.

SHANGHAI SHENGPIN NETWORK TECHNOLOGY DEVELOPMENT CO., LTD.

By: /s/ Qunzhao Tan
   ___________________________
Name:  Qunzhao Tan
Title: General Manager

SHENGQU INFORMATION TECHNOLOGY (SHANGHAI) CO., LTD.

By: /s/ Tianqiao Chen
   ___________________________
Name:  Tianqiao Chen
Title: Executive Director

                                       10

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