Document:

MEMORANDUM OF UNDERSTANDING

THIS  AGREEMENT  is  made  the  18th  day  of  February,  2003

BETWEEN

     HONG  YUAN  ENTERPRISE  LIMITED
     8/21  Yen  Arkard  Road,  Tung-Mahamek,
     Yannawa,  Bangkok  10120  Thailand

AND

     ASIA  PROPERTIES,  INC.
     114  W.  Magnolia  St,  #400-115
     Bellingham,  WA  98225  USA

(Collectively  the  "Parties")

                                    WHEREAS:-

A.     Hong  Yuan  Enterprise  Limited  (hereinafter referred to as "HYEL") is a
real  estate limited liability corporation based in Bangkok, organized under the
laws  of  Thailand.

B.     Asia  Properties,  Inc.  (hereinafter  referred to as "API") is a company
organized  and  existing  under the laws of the state of Nevada, with offices in
Bangkok,  Thailand  and  Bellingham, WA, USA. MRCM. Richard CutlerI would delete
the  reference to trading unless it is required to do the transaction; otherwise
the  language  is  fine.

C.     At  the  date hereof, API has 50 million shares of par value of US $0.001
each,  of  which  approximately  6.6  million shares are issued and outstanding.

Following  SEC  clearance,  API  intends  to meet the requirements of the NASDAQ
Bulletin  Board  and  to commence trading on the Over the Counter Bulletin Board
within  the  first  half  of  year  2003MRCM.  Richard  CutlerThis  date  may be
aggressive  since we not only need to get the SB-2 effective, we would also have
to  apply  to  the  OTCBB.  Six  months  may be too soon, but I would leave this
reference  anyway since it's listed as an "intention", then apply for the NASDAQ
BBX  which  is  presently  targeted  to  initiate  trading  by  Q4,  2003.

API's  plan  is  to acquire, develop and manage resorts and hotels, initially in
Thailand,  then regionally in Asia and the South Pacific for significant capital
gain  and  yields.

D.     API  is  interested  in  purchasing  a  100%  interest  in the 101 Rai of
freehold  /  Nor  Sor  San,  beach front land at Mai Khao, Phuket beach owned by
HYEL.
E.     API  intends  to  provide  funding for the development of a resort on the
property.

NOW,  THEREFORE,  THE  PARTIES  HERETO  HEREBY  AGREE  AS  FOLLOWS:

1.     Expression  of  Interest

1.1     API desires to acquire a 100% interest of the 101 Rai freehold / Nor Sor
San,  at  Mai  Khao  beach  owned  by  HYEL  for a purchase price of (Thai) Baht
404,000,000.

1.2     The  parties  will  diligently  and in good faith negotiate a definitive
agreement  (the "Definitive Agreement") incorporating the principal terms of the
contemplated  transaction as set forth herein and, in addition, such other terms
and  provisions, including appropriate representations and warranties, of a more
detailed nature as the parties may agree upon.    The Definitive Agreement shall
be  subject  to  board  and  shareholders  approval  for  API.

1.3     API shall have a due diligence period of sixty
(60)  days  -  the  "due diligence period"). During the Due Diligence Period API
will  have  the  right to conduct a full due diligence investigation of and HYEL
will  provide  all  relevant  information  on their property, including a recent
property evaluation, tax records, and land title, business records and any other
information reasonably requested by API.  API and its attorneys, accountants and
financial  advisors  will  have  full access during normal business hours to all
employees,  consultants,  assets,  properties,  books,  accounts,  records,  tax
returns,  contracts  and other documents of , provided, however that such access
will  not  materially interfere with the normal business operations of .  In the
event  the  parties terminate their discussions for any reason API will promptly
return  all  documents  and  other  materials  so  provided  to  it.

2.     Confidentiality

2.1     API  acknowledges  that  it  owes an obligation of confidence to HYEL in
respect  of  any  Confidential  Information  provided  by  HYEL;

2.2     API  further  acknowledges  that the Confidential Information (including
any  copies  made  thereof  to  API)  is:-

a.     the  property  of  the HYEL, its subsidiaries and/or associate companies;

b.     secret,  confidential  and  valuable  to  HYEL,  its  subsidiaries and/or
associate  companies;

3.     Due  Diligence

3.1     HYEL  shall furnish to API the information
listed  in  the  attached  sheet,  Annex A, and any additional items that may be
necessary  for  API  to make its initial evaluation of the potential investment.
The  due diligence period shall not be longer than {two} months from the date of
this  Agreement.

3.2   During the conduct of its due diligence the Parties will negotiate in good
faith  to  enter  into  a  Definitive  Agreement.

3.3     Upon  completion  of its due diligence and wherein API finds there is a
material  change  in  the  circumstances,  resulting in dissatisfaction with its
findings  API  will be permitted to terminate this agreement, and this Agreement
shall  be  deemed  terminated.  Thereafter,  there  shall be no further right or
obligation  by  either  party  towards  the  other except as defined within this
Agreement.

5.     Terms  and  Conditions-  subject  to  contract

5.1     API  will  acquire  100%  interest of the 101 Rai of Mai Khao Beach at a
price  of  Baht  4  million  per  Rai.  404  million Thai Baht total acquisition
price.

5.2     API  will  issue  shares of its common stock to Koola Holding Limited or
its  nominees equivalent to its equity in the land of 224 million Baht.  The API
share  price  will  be  determined  in  the  Definitive  Agreement.

5.3     API  will seek its own mortgage financing of 180 million Baht to pay the
debt  owed  to  Bangkok  Bank  by  HYEL.  to  HYEL.

5.4     Commencing  immediately,  and  its  respective agents will not, nor will
they  permit any of their respective officers employees or agents (including and
without  limitation,  investment bankers, attorneys and accountants) directly or
indirectly  to,  solicit, or accept any offer for the purchase of the 101 Rai of
Mai  Khao  beach  land,  whether as a primary or backup offer, or take any other
action  with  intention  or  reasonable  foreseeable  effect  of  leading to any
commitment  or  agreement to sell such property.  In addition,  will conduct its
respective  operations  according  to  its ordinary and usual course of business
consistent with past practices and will not enter into any material transactions
or  incur  any  material  liabilities  without  obtaining  the  consent  of API.

Termination

6.1     This  Agreement  shall  expire  in  90 days from the date of signing and
shall  be  renewable  only with the written agreement of both Parties. If at any
time  between  the  date  of  signing  this  Memorandum and closing there is any
material  change  in  circumstances,  which  adversely  affect  the  fundamental
understandings  or  spirit of this Memorandum, either party shall have the right
to  terminate  this  Memorandum.

7.     Governing  Law

7.1     This  Agreement  shall  be  governed  by  and  shall  be  interpreted in
accordance  with  the  laws  of {Thailand}.

Miscellaneous

8.1     This  Agreement  is  an  expression  of interest on the part of API in
acquiring  the  100%  interest in the Mai Khao beach land 101 Rai owned by HYEL.
As  such,  any  potential transaction is subject to contract to the execution by
both  Parties  of a formal Investment agreement upon agreement of full Terms and
Conditions  for  the  transaction.

8.3     Both  Parties  agree that the consummation of the sale of Mai Khao Beach
land to API would be subject to obtaining all necessary comments, approvals, and
consents  and  making  all  necessary  filings  with  all  relevant  government
authorities  in  addition  to  board  approval  of  both  Parties.

8.4     Each  provision  of  this  Agreement  shall be deemed to be separate and
severable  from each other provision.  If any provision of this Memorandum shall
be  invalid  and  not  enforceable  in  accordance  with  its  terms,  all other
provisions,  which  are  self-sustaining  and  capable  of  separate enforcement
without regard to any such invalid provisions, shall be and continue to be valid
and  enforceable  in  accordance  with  their  terms.

The  above  terms  are  meant  solely to indicate API's interest in the proposed
acquisition.  Except  for  "Confidentiality"  (which  shall  be  binding  on the
Parties  hereto),  nothing  contained  herein,  whether stated or implied, shall
impose  any  obligation  of  any  kind  upon  HYEL  or  API.

Except  as otherwise specifically set forth herein. Each party will bear its own
attorneys,  brokers,  investment  bankers, agents, and finders employed by, such
party.  The parties will indemnify each other against any claims, costs, losses,
expenses or liabilities arising from any claim for commissions, finder's fees or
other compensation in connection with the  contemplated transaction which may be
asserted  by any person based on any agreement or arrangement for payment by the
other  party.

The  parties  may  execute  this  Memorandum  of  Understanding  in  two or more
counterparts,  each  of  which is deemed to be an original and all of which will
constitute  one  agreement,  effective  as  of  the  date  given  above.

Representations,  Warranties  and  Undertakings

9.1     API represents and warrants that the company is a qualified investor and
investment  partner  in  good  standing  within  the  laws  of USA. All relevant
liabilities will have been disclosed prior to the date of signing the Definitive
Agreement.

9.2     HYEL  represents  and  warrants  that  all  liabilities,  liens  and
encumbrances  of  the  land  the  will  have been disclosed prior to the date of
signing  the  Definitive  Agreement.

9.3     Both  parties  agree to work together to secure the required development
approvals  for  a  resort  from  the  relevant  authorities  in  Phuket.

IN  WITNESS WHEREOF the Parties hereto have caused this Agreement to be executed
the  day  and  year  first  above  written.

SIGNED  BY
for  and  on  behalf  of
ASIA  PROPERTIES,  INC.

Witnessed  by:

SIGNED  BY
for  and  on  behalf  of
HONG  YUAN  ENTERPRISE  LIMITED

Witnessed  by:

ANNEX  A

API  will  require  the  following  from  HYEL:

1.     Land  title  deed
2.     A  current  property  valuation
3.     An opinion as to the ability to get necessary building approvals from the
Phuket  Government  authorities.MEMORANDUM OF UNDERSTANDING EXTENSION

Whereas  HONG  YUAN  ENTERPRISE  LIMITED  ,  located  at:  8/21 Yen Arkard Road,
Tung-Mahamek,,  Yannawa,  Bangkok  10120  Thailand  (and)  ASIA PROPERTIES, INC.
located  at:  114  W.  Magnolia  St,  #400-115,  Bellingham,  WA  98225  USA
signed  a  Memorandum  of  Understanding  on  February  18,  2003.

By  mutual agreement both parties agree to extend the term of this Memorandum of
Understanding  to  July  1,  2003  or  until  they enter into a Sales & Purchase
agreement.

Date:  May  20,  2003

SIGNED  BY  Daniel  S.  Mckinney
for  and  on  behalf  of
ASIA  PROPERTIES,  INC.

SIGNED  BY
for  and  on  behalf  of
HONG  YUAN  ENTERPRISE  LIMITED

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