Document:

<PAGE>

                                                                    Exhibit 10.8

                     PAN ASIA COMMERCIAL BANK, TAIPEI BRANCH

                             ACKNOWLEDGEMENT OF LOAN

1.    Account Name : Kid Castle Internet Technology Corporation

2.    Condition :

<TABLE>
<CAPTION>
                                                             Duration
                                                  Maturity      of
        Financing    Financing                    period of  Financing    Repayment
          Type         Amount      Interest rate    loan       Quota       Method
       -----------  ------------   -------------  ---------  ---------  -------------
<S>    <C>          <C>            <C>            <C>        <C>        <C>
 1       Mid-Term   $ 25 million      BR+0.956%    2 years   One-time   principal and
          Loan                     (i.e., 5.25%)               loan     interest are
                                                             issued to     jointly
                                                                the       amortized
                                                             Borrower     evenly on
                                                             till its   monthly basis
                                                              expiry

       Grand Total  $ 25 million   BR : the base rate of the Bank (currently : 4.294%)
</TABLE>

3.    Security for the Loan :

      A.    joint guarantors : Wang, Kuo-An (President of the Company) and Chiu,
                               Yu-En (Vice- President of the Company);

      B.    Repayment Cheque(s) : request a total of twenty-five million NT
                               dollars of promissory note(s), which should be
                               concurrently issued by the Borrower and joint
                               guarantor(s) for the Bank, in addition, request
                               twenty-four(24) cheques in installments for the
                               Bank as backed deposits for repayment.

      C.    Auxiliary security: the Borrower must provide 30% of C/D of the Bank
                               as the pledging security for using loan quota.

4.    Other : proceed in accordance with relevant rules of the Bank.

<PAGE>

                                 Loan Agreement

This Agreement is made by and between the person/company (hereinafter referred
to as "the Contract Signatory") and Pan Asia Commercial Bank (hereinafter
referred to as "the Bank", including the Bank headquarters and all branches).
The Contract Signatory shall hold the responsibility of all obligations to the
Bank under the terms and conditions specified as follows.

General Provision :

Article 1   The Scope Of Debt

            All obligations prescribed in this Agreement include all evidence of
            debts, liabilities and obligations, such as CHEQUES, LOANS, MONEY
            ADVANCES, DEBT SECURITIES, ACCEPTANCE, ENTRUST GUARANTEE, LETTERS OF
            CREDIT ISSUING, CREDIT CARD PAYMENT AND OTHER DEBTS, INCLUDING
            ACCRUED INTEREST, DEFERRED INTEREST, DEFAULT PENALTY OR INDEMNITIES,
            AS WELL AS OTHER RELEVANT PAYMENTS RELATING TO SAID EXPENSES.

Article 2   Joint Obligations

            The Contract Signatory and other obligors jointly issue receipts or
            invoices to apply to the Bank for a loan. In the event the Bank pays
            only the other obligors who have issued receipts or invoices, it
            shall be deemed that the Contract Signatory has been paid and shall
            continue to be responsible for repaying the obligation.

Article 3   Change Notification and Document Delivery

            In the event that the name, address, organization, Articles of
            Incorporation, representative(s), the authorization of the
            representative(s) of the Contract Signatory or any other matter that
            would affect the rights and interests of the Bank is changed, the
            Contract Signatory shall forthwith notify the Bank in writing of any
            such change, and shall be liable therefor if the Bank suffers any
            damage as a result of its failure to notify. In the event the
            Contract Signatory fails to notify the Bank of a change in mailing
            address, or any occurrence or reason the Contract Signatory shall be
            liable for any resulting damage. ANY NOTICE SHALL BE DEEMED TO BE
            DELIVERED TO ALL PARTIES TO THIS AGREEMENT WHEN SENT BY THE BANK
            WITHIN THE ORDINARY TIME FRAME IN MAIL DELIVERY TO THE LATEST
            UPDATED ADDRESS NOTIFIED BY THE CONTRACT SIGNATORY TO THE BANK.

Article 4   Calculation of Interest Rate

<PAGE>

            (1)   In addition to special clause provisions, the Contract
                  Signatory shall be responsible for the repayment of all
                  interest on its debts to the Bank on monthly basis in
                  accordance with respective interest rates agreed upon under
                  the different loan agreements between the Contract Signatory
                  and the Bank. For any debt that the Contract Signatory owes
                  the Bank and no specific interest rate is set forth in any
                  agreement, the interest rate of such debt shall be calculated
                  based on the base rate announced by the Bank on that day of
                  debt issued by the Bank plus 6% per year.

            (2)   The Contract Signatory agrees that the base rate of the Bank
                  comprises the discount rate announced by Central Bank of China
                  plus interest rate risk factors, assets risk factors for loan
                  and the operation cost of the Bank. In addition, the Contract
                  Signatory agrees that the Bank is not required to give
                  additional notification while adjusting the base rate under
                  the following situations and may calculate interest payable by
                  the Contract Signatory based on adjusted base rate starting
                  from the that date of base rate adjustment:

                A.  The Bank shall adjust the interest rate on Jan. 15th of
                    each year(postpone to the next working day if on holiday)
                    based on the calculation of interest rate risk factors of
                    the Bank by the spread between average rate paid on deposits
                    over the twelve-month period of the Bank and the discount
                    rate announced by Central Bank of China; calculate interest
                    rate risk factors of the Bank on Jul. 15th of each year
                    (postpone to the next working day if on holiday) based on
                    spread between average rate paid on deposits over the
                    six-month period of the Bank and the discount rate announced
                    by Central Bank of China; make an adjustment based on the
                    operation cost of the Bank in accordance with the latest
                    announced audited financial number of the previous year and
                    the ratio of the whole year operating cost to the total
                    assets of the Bank. The formula of calculating average
                    deposit interest rate is (interest paid on deposits over a
                    six-month or a twelve-month period) x 12 / (balance held on
                    deposit over a six-month or a twelve-month period);

                B.  The assets risk factors for a loan is regulated under the
                    Guidelines Regulating Audit of Income Taxes on
                    Profit-making-Enterprises promulgated by the Ministry of

<PAGE>

                    Finance, equivalent to 1% of the balance held on debt
                    obligations that is calculated by the finance and banking
                    industries for the estimate of their bad debts; therefore,
                    the Bank should adjust the assets risk factors for loan when
                    the 1% of the ratio of the bad debt loss to the balance of
                    debt obligation in accordance with the Guidelines Regulating
                    Audit of Income Taxes on Profit-making- Enterprises is
                    amended by the Ministry of Finance.

                C.  The Bank should adjust the interest rate on the next
                    business day of the adjustment of discount rate of the
                    Central Bank of China.

                D.  The base rate structure should be regularly reviewed by
                    the Bank. In the event the Bank finds out the base rate
                    structure factors are out of date, the Bank should amend the
                    factors and submit to the Central Bank of China for approval
                    and change the base rate as appropriate.

                E.  In the event of any significant change in financial
                    markets resulting in the divergence of the base rate of the
                    Bank from normal market rates, the Bank may make public such
                    rate difference in business premises or on the website of
                    the Bank, or newspapers or magazines ten(10) days before and
                    report such change to the Central Bank of China for
                    adjusting the base rate of the Bank.

Article 5   Acceleration Clauses

            When any one of the following events occurs, the Bank may at anytime
            reduce or cease the Contract Signatory's amount of credit line,
            shorten maturity period of the Contract Signatory's loan, or
            announce the demand date due of repaying all the obligations the
            Contract Signatory owe the Bank (including balance of the guaranteed
            loan not to be commuted by the Bank yet):

            (1)   The principal and/or interest of any payable indebtedness have
                  not been repaid in full or in any installment, or in the event
                  of non-acceptance or non-payment;

            (2)   The Contract Signatory fails to provide collateral in
                  accordance with this Agreement;

            (3)   The Contract Signatory applies to the court for arranging a
                  composition, adjudicating bankruptcy or corporate
                  reorganization in accordance with Bankruptcy Law, or the
                  Taiwan Clearing House announces that the Contract Signatory is
                  a denied credit, or

<PAGE>

                  the Contract Signatory ceases the business operation or
                  redeems the indebtedness;

            (4)   Because of the death of the Contract Signatory, the heir(s) of
                  the Contract Signatory declare limited succession or waiver of
                  inheritance;

            (5)   The Contract Signatory's principal property is subject to
                  sequestration by the court owing to any criminal case;

            (6)   The interest of any payable indebtedness has not been repaid
                  in accordance with respective agreements;

            (7)   Securities are sealed up on government orders or lost, or the
                  security values under warranty are decreased or deficient to
                  guarantee the creditor's rights;

            (8)   The actual purpose of this loan is not in compliance with the
                  purpose approved by the Bank or the loan is not used as
                  appropriate;

            (9)   The Contract Signatory is under either actions of enforcement,
                  provisional seizure, provisional disposition or other safety
                  disposition, so that the Bank may not claim for the right of
                  repayment for the obligations;

            (10)  It is found that the Contract Signatory obtained this loan by
                  means of its false report or statement, hidden information, or
                  any breach of the Agreement or commitments to the Bank occurs,
                  so that the Bank deems it necessary to safeguard the
                  creditor's rights from the Contract Signatory;

            (11)  In addition to the preceding provisions, the Bank considers
                  the necessity of safekeeping the creditor's rights. If the
                  Bank can prove a concrete event as prescribed on the
                  Agreement, the Bank may accelerate the maturity period of loan
                  (with or without prior notification). If it is found that the
                  Contract Signatory has performed specific behaviors as
                  provided on Items (1) to (5) and (11), the Bank shall not give
                  any notification or reminder to the Contract Signatory in
                  advance.

Article 6   Right of Offset and Order of Priority for Satisfaction of Credit

            (1)   In the event the Contract Signatory breaches the Agreement
                  regardless of the maturity period of loan, the Bank has the
                  right to directly pay off all obligations from all kinds of
                  deposit accounts (the provision on checking account(s) is
                  prescribed in Item (2)), as well as offset the creditor's
                  rights of the Bank to the Contract

<PAGE>

                  Signatory, prior to the maturity period, by law or agreements
                  between the parties, or when the Bank has acted as spontaneous
                  agency for a third party or commissioned by any third party
                  through a transaction relationship to request the Contract
                  Signatory to repay payments.

            (2)   The Contract Signatory understands and agrees that in the
                  event the Contract Signatory breaches the Agreement of a
                  checking account with the Bank, the Bank may announce the
                  demand date due of repaying all the obligations that the
                  Contract Signatory owes to the Bank and the termination of the
                  Agreement.

                  Thereupon, the checking account(s) of the Contract Signatory
                  at the Bank shall be voided and the Bank shall immediately
                  return the balance in the checking account(s) to the Contract
                  Signatory and use said money to offset the Contract
                  Signatory's obligation to the Bank.

            (3)   The scheduled offset prescribed in the preceding two
                  paragraphs means that the right of offset shall be effective
                  upon the Bank's deduction from the accounts of the Contract
                  Signatory. Meanwhile, the bank deposit certificates, deposit
                  books, cheques or other certificates issued from the Bank to
                  the Contract Signatory will be voided within the offset amount
                  of the obligations.

            (4)   In the event the offset amount of the Contract Signatory is
                  insufficient to repay all obligations, said obligations shall
                  be offset in accordance with either Articles 321, 322 and 323
                  of the Civil Code or the order of priority for satisfaction of
                  credit designated by the Bank, depending on whether clauses
                  are in favor of the Contract Signatory.

Article 7   Guaranty on Performance of the Agreement

            In the event the principal obligor fails to perform the obligations
            incurred according to respective agreements, the Contract Signatory,
            as the guarantor, shall immediately be responsible for fulfilling
            the guarantee debts, and in addition, shall consent the following:

            (1)   The Bank may directly request the repayments for all
                  obligations from the Contract Signatory, instead of from the
                  security for all obligations.

            (2)   After the Contract Signatory has liquidated all obligations on
                  behalf of the principal obligor, the Contract Signatory may

<PAGE>

                  request the Bank to return the security rights for all
                  obligations by law and should have no objection against defect
                  of the security. The right of claim (restrained by the
                  original creditor's right as the Principal Obligor assigned to
                  the Bank) and the right of subrogation the Contract Signatory
                  can claim, owing to part of the Contract Signatory's
                  compensation for the obligation the Principal Obligor owe to
                  the Bank, from the Principal Obligor should be compensated
                  from the creditor's remaining obligation right of the Bank to
                  the Principal Obligor.

Article 8   Supervising, Auditing, Examining and Information Providing

            The Bank may from time to time supervise the use of the credit
            facility, audit the business operations and the financial conditions
            of the Contract Signatory, inspect and control the collateral, and
            the Bank or Joint Credit Information Center may examine the relevant
            accounts, books, vouchers, documents of the Contract Signatory
            (including its consolidated financial report), to which Contract
            Signatory shall be willing to cooperate. When deemed necessary, the
            Bank or Joint Credit Information Center may request the Contract
            Signatory to prepare and deliver on a periodic basis the
            above-mentioned credit information or audited financial report
            prepared by the CPA recognized by the Bank and the working sheets of
            that auditing CPA. However, the Bank or Joint Credit Information
            Center shall have no obligations to supervise, audit inspect,
            control and examine. In the event that the Bank deems that the
            financial structure of the Contract Signatory shall be improved, the
            Bank may demand Contract Signatory to increase its capital or to
            take other actions for improving its financial structure, and
            Contract Signatory shall forthwith act accordingly.

Article 9   Personal Data Computer-Processing and Usage

            The Contract Signatory agrees that the Bank may, for specific
            purposes of evaluating the credit of the Contract Signatory, the
            estimate of credit line determination of the Bank and other business
            needs that are prescribed in the registered business items of the
            Bank, provide relevant personal information of the Contract
            Signatory, such as basic information financial statements, banking
            deposits, currency exchanges, credit card data, deals on credit,
            investigation report on credit reference, personal loan, cheque
            credit and other personal data relating to this Agreement, for the
            Bank and Joint Credit Information Center to process and use; in
            addition, the Contract Signatory agrees that banking institutions of
            the Joint Credit

<PAGE>

            Information Center members may inquire about said information in
            connection with the Contract Signatory from Joint Credit Information
            Center.

Article 10  Acknowledgement of Defect, Damage or Extermination of Certificate of
            Debt Obligation

            In the event the certificates of all obligations incurred by the
            Contract Signatory to the Bank are lost, damaged or exterminated due
            to incidents, force majeure or any causes for which the Bank shall
            not be liable, the Contract Signatory agrees to acknowledge all
            corrected amounts recorded on respective account books, vouchers,
            computer-based receipts and/or statements, debt certificates,
            duplicate copies of transaction documents of the Bank; nevertheless,
            any of false obligation amounts recorded thereon shall be corrected
            by the Bank, after the Contract Signatory has proved to be wrong on
            evidence. In addition, the Contract Signatory, upon the maturity
            period of loan, should liquidate all payments relating to the
            obligation, expenses, default penalty and the principal and interest
            at once, or issue additional debt certificate to the Bank according
            to the notification of the Bank prior to the maturity date.

Article 11  Return and Change of Collateral and Certificate

            Any person, who possesses any safekeeping receipt that describes an
            obligation deposited, or the bank book or other receiving documents
            with the identical seal of the Contract Signatory and goes to the
            Bank requesting for returning or exchanging security , its
            certificates or relevant documents, shall be regarded as the proxy
            of the Contract Signatory and the Bank shall assist in said
            processes with the proxy.

Article 12  Signature and Seal

            The signatures and/or seals on this Agreement are personally made
            and verified by the Contract Signatory, and then :

            [X]   Respective loan agreements and/or papers made between the
                  Contract Signatory and the Bank shall be effective upon the
                  application of either the signature or the identical seal of
                  the Contract Signatory.

            [ ]   Respective loan agreements and/or papers made between the
                  Contract Signatory and the Bank shall be effective when the
                  Contract Signatory personally sign and seal thereon, and
                  complete guarantee process with the Bank's auditor.

Article 13  Applicable Law and Court Jurisdiction

            The Contract Signatory acts as Taiwanese (legal person) or foreigner

<PAGE>

            (legal person) in connection with various obligations with to the
            Bank, the condition, method and effectiveness of the Contract
            Signatory's legal behavior shall be subject to the ROC laws. All
            disputes about obligations hereunder shall be governed by
            jurisdiction of the _________District Court or the Taipei District
            Court for the first trial.

Article 14  Effectiveness of the Agreement

            The Agreement is the general clause supplemental to each loan
            contracts or documents and shall be valid after executed by the
            Contract Signatory and delivered to the Bank.

To : Pan Asia Commercial Bank

Special Clauses

-     In the event the Principal Obligor defaults to perform the responsibility
      of repaying the obligations that are under guaranty of the Contract
      Signatory, the Bank, based on the application of the Principal Obligor,
      may deem it necessary for the Principal Obligor to extend the time period
      of liquidation or repayment in installments and inform the Contract
      Signatory, and the Contract Signatory agrees to continuously hold the
      joint responsibility of repaying the obligations that are under guaranty
      of the Contract Signatory upon the written notification of the Bank is
      delivered.

-     The Contract Signatory agrees that all assets under his name will not be
      trust targets after the Principal Obligor obtains the loan and the
      Contract Signatory acts as the joint guarantor.

-     The security rights of collateral provided by the Contract Signatory on
      this Agreement will not be affected in light of future trust planning.

-     In the event any article prescribed in this Agreement conflicts with
      articles on respective loan agreements, the Contract Signatory should
      comply with articles provided on respective loan agreements.

-     The Contract Signatory declares that the above clauses have been read
      within a reasonable period of time and agrees to be bound thereby.

The Contract Signatory :

<PAGE>

Kid Castle Internet Technology Corporation Wang, Kuo-An (sealed)

Legal representative :
/s/ Wang, Kuo-An

Dated : Mar. 17th, 2004
Time         11:00, Mar. 17th, 2004
Location     8/F, 98, MingChuang Road, Hsin Tian City
Guarantee    Liu, Yi-Lin
Remark

Kid Castle Internet Technology Corporation Wang, Kuo-An (sealed)
/s/ Wang, Kuo-An

<TABLE>
<S>           <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C>
Business
Uniform No.   7    0    6    7    6    6    3    0

ID No.

Address       1st floor,148, Chienkuo Road, Hsintien City
</TABLE>

<TABLE>
<S>                                         <C>
Supervisor                                  Clerk
</TABLE>

Note : in the event the Contract Signatory is an adolescent, the legal
representative of the Contract Signatory should sign and seal on the columns for
"the Contract Signatory" and "authorized seals".

Dated : Mar. 17th, 2004

<PAGE>

                              RECEIPT OF BORROWING

<TABLE>
<S>          <C>     <C>          <C>
Supervisor   Clerk   Checked by   A/C
</TABLE>

To : Pan Asia Commercial Bank

                                 (Reserved for the use of term/installment loan)
Notice is hereby given by Kid Castle Internet Technology Corporation / WANG,
KUO-AN (hereafter called the Borrower). Whereas the Borrower asked for a loan of
twenty-five million NT dollars (hereafter called the Loan) together with the
guarantor(s) on terms and conditions made as follows :

1.    The Loan shall be made to the Borrower by either being deposited into the
      Borrower's account at the Bank or paid for the application designated by
      the Borrower.

2.    The terms and repayment of the Loan are made in accordance with the
      following Schedule (3) :

            (1)   This Loan runs during the period from _______ to _____,
                  wherein the interest shall be paid every _______ month(s)
                  after the Loan has been issued; the principal shall be repaid
                  at once upon its expiry (the end of the aforementioned
                  period).

            (2)   This Loan runs during the period from ______ to ________ ; the
                  principal shall be paid in ________ installments and the first
                  installment thereof starts on ________ after the Loan has been
                  issued; the rest of principal shall be repaid in equal
                  installments every _______ month(s); the interest shall be
                  paid every ________ month(s).

            (3)   This Loan runs for 2 years and x months during the period from
                  Mar. 30th, 2004 to Mar. 30th, 2006; the principal and interest
                  shall be paid in 24 installments; the first installment shall
                  be on Apr. 30th, 2004 and principal and interest shall be
                  repaid in equal installments every 1 month(s) from the 2nd
                  installments.

                  The Borrower should ask for a receipt of interest repayment
                  from the Bankas evidence.

3.    The interest on the Loan shall be repaid in accordance with Item (1) as
      follows :

            (1)   The Borrower shall pay interest on the Loan at the rate of
                  5.25% per annum (calculated based on the base interest rate
                  and the margin

<PAGE>

                  standard of the Bank upon signing of the Loan Agreement), the
                  said interest rate may float at any time according to the
                  Bank's adjustments to the base interest rate after the signing
                  of the Loan Agreement. In addition, the interest rate shall be
                  adjusted based on the interest rate standard of the Bank every
                  ________ month(s) thereupon after the signing of the Loan
                  Agreement.

            (2)   The Borrower shall pay interest on the Loan at the rate of ___
                  per annum (calculated based on the base interest rate and the
                  margin standard of the Bank upon signing of the Loan
                  Agreement), the said interest rate shall be adjusted based on
                  the base interest rate and the margin standard of the Bank
                  every _______ month(s) thereupon after the signing of the Loan
                  Agreement.

            (3)   The Borrower shall pay interest on the Loan at the rate of per
                  ___ annum.

4.    The Borrower agrees that the Bank may review the interest rate of this
      Loan in accordance with "Rules Relating to Loan Interest Rate" of the Bank
      every _____ month(s) after the Loan has been issued. In the event the
      condition of the Borrower is in consistent with the Rules, the Borrower
      agrees that the Bank may readjust the interest rate of this Loan as
      appropriate to follow.

5.    In the event the borrower fails to repay the Loan at once upon its expiry
      or when the Loan is deemed due in full, the Borrower shall pay the
      interest for deferred interest based on the agreed interest rate.

6.    In the event the Borrower repays the principal, the unpaid payable
      interest or the delinquent principal and interest, the remaining sum of
      the reimbursement shall be calculated based on 10% of the Loan interest as
      penalty if the reimbursements are made in less than six months from the
      specified date, or 20% of the Loan interest as penalty if paid more than
      six months after the specified date.

7.    The Borrower and the guarantor(s) is/are willing to regard additional Loan
      Agreement signed as a part of this Acknowledgement of Loan.

8.    Any indebtedness owed by the Borrower and the guarantor(s) to the Bank
      shall be governed by and construed under the jurisdiction of the _______
      District Court or the Taipei District Court for the first trial of such
      lawsuits.

Borrower :  Kid Castle Internet Technology Corporation
            /s/ Wang, Kuo-Am

Address :   1st floor,148, Chienkuo Road, Hsintien City

<PAGE>

Guarantor : /s/ Wang, Kuo-An

Address :   8th floor,156, Chienkuo Road, DaFeng Li (Village), 8 Lin
            (Neighborhood ), Hsintien City, Taipei County

Guarantor : /s/ Chiu, Yu-En

Address :   No. 71, Sec. 1, Nanchang Road, LongFu Li (Village), 2 Lin
            (Neighborhood ), Chung-Cheng District, Taipei City

Guarantor : nil
Address :   nil

Guarantor : nil
Address :   nil

Dated : March 17th, 2004<PAGE>

                                                                    Exhibit 10.9

CHAILEASE FINANCE CO., LTD.
8F, 362, Rueiguang Rd., Taipei, Taiwan, 114
TEL: (02) 87526388
FAX: (02)87526296

To: Kid Castle Internet Technology Corporation
Attn: Vice Chairman Mr. Chiu/ Vice manager Mr. Huang          Date: 2004/08/40
From : Lin, Chung De of Chailease Finance Co., Ltd            Page: 1

                                 APPROVAL NOTICE

Approved financial amount: NT$ 20,000,000
Guarantee: 20% deposit and 20% checks as second security
Maturity Period: 24 months
Payment amount: 20,000,000 + 1,000,000 (5% sales tax)= 21,000,000
Payment date: August 31, 2004
Detail of the checks:

                    As stated in the quotation

Note: Payee of the check shall be Chailease Finance Co., Ltd. Endorsement of the
check shall be allowed.

To be provided

1.    Invoice to : Chailease Finance Co., Ltd.
      Business Uniform No.: 05072925; Items: Books, stationary and etc.
      Amount: $20,000,000 ; Tax Amount: $1,000,000; Total $21,000,000
      Issuance Date August 31, 2004

2.    Company seals of Kid Castle and copy of Business License

3.    Private chop of Vice Chairman Mr. Chiu for guaranty

4.    Checks of repayment (details as stated in the quotation. No endorsement
      forbiddance.

5.    Repayment Account.

Guaranty conditions:

1.    Deposit of $4,000 shall be returned with interest after the repayment
      checks of the

<PAGE>

      15th and 24th installment has been cashed.

2.    Installment of notes receivable shall be secured by the checks in 20% of
      the amount and shall be delivered before the beginning of the ease not
      less than 4,416 thousand dollars to Chailease Finance Co., Ltd.
      Limitation: A. No reimbursement. B. No endorsement forbiddance. C.
      Transaction certificate attached to each check which is more than 200
      thousand (accumulation included) in face value. D. Due date before August
      31, 2006. Kid Castle shall endorse the checks.

<PAGE>

                         AGREEMENT OF SALE AND PURCHASE

Contract No.: 92-K2988-G

This Agreement is made by and between Chailease Finance Co., Ltd. (herein after
referred to as "Party A") and Kid Castle Internet Technology Corporation
(hereinafter referred to as "Party B") for Party B's purchase from Party A of
the objects described hereunder.

<TABLE>
<CAPTION>
                     NAME                                             UNIT
----------------------------------------------------------        -------------
<S>                                                               <C>
Kids Speak Main Class Serial - direct selling                     628 sets
Wonderland Main Class Serial - direct selling                     415 sets
Textbooks - Magic Land 5                                          8297
Electronics - digital Schoolbag - direct selling                  2526 sets
Textbooks - Way To Go (12)                                        1884
Magazine CD (Vol. 9) - 2000 July                                  12468 slices
Magazine Vol. 14 - 2000 December                                  5810
CD Interactive - Wonderland (yellow) paperback                    4225 slices
Kids Talk Story Books Serial - direct selling                     510 sets
Toys - Chi - Wa Magic Treasure Box (Box and magic tools)          3502
Diverse Knowledge Main Class Serial - direct selling              821 sets
Magazine Vol. 10 - 2000 August                                    16562
Magazine Vol. 12 - 2000 October                                   9283
Magazine Vol. 7 - 2000 April                                      11253
Magazine Vol. 10 - (supplement) - 2000 August                     16752
Supplement - Magic Land 1 (Revision)                              10472
Magazine Vol. 13 - 2000 November                                  25191
Winnie the Pooh Watch (Blue)                                      6058
Magazine Vol. 9 -                                                 15023
Magazine Vol. 13 - (supplement) - 2000 November                   25113
Textbook - Big Steps (6)                                          1797
Kids Talk Electronic Book + Cassette - direct selling             155 sets
CD Interactive - Wonderland (Blue) paperback                      5348 slices
Handbags - PVC zipper bags                                        36260
Magazine CD (Vol. 13) 2000 November                               18969 slices
Sound Speed Kid - Mobilization of Games                           12990 slices
Textbooks - Magic Land 7                                          9095
Magazine Vol. 8                                                   8423
Textbook - Way To Go (11)                                         1550
Magazine CD (Vol. 10) 2000 August                                 11137 slices
</TABLE>

<PAGE>

Both parties agree to abide by the terms and conditions set forth.

1.    The Amount of the Objects and Method of Payment:

      A.    The Amount of the Objects: NT$22,080,000.

      B.    The Down Payment: NT$0.

      C.    The Method of Payment to Party A: (exclusive of tax)

<TABLE>
<CAPTION>
     PAY DATE                   AMOUNT (NT$)
------------------              ------------
<S>                             <C>
September 30, 2004              NT$ 920,000
October 31, 2004                NT$ 920,000
November 30, 2004               NT$ 920,000
December 31, 2004               NT$ 920,000
January 31, 2005                NT$ 920,000
February 28, 2005               NT$ 920,000
March 31, 2005                  NT$ 920,000
April 30, 2005                  NT$ 920,000
May 31, 2005                    NT$ 920,000
June 30, 2005                   NT$ 920,000
July 31, 2005                   NT$ 920,000
August 31, 2005                 NT$ 920,000
September 30, 2005              NT$ 920,000
October 31, 2005                NT$ 920,000
November 30, 2005               NT$ 920,000
December 31, 2005               NT$ 920,000
January 31, 2006                NT$ 920,000
February 28, 2006               NT$ 920,000
March 31, 2006                  NT$ 920,000
April 30, 2006                  NT$ 920,000
May 31, 2006                    NT$ 920,000
June 30, 2006                   NT$ 920,000
July 31, 2006                   NT$ 920,000
August 31, 2006                 NT$ 920,000
</TABLE>

      D.    Upon signing of the Agreement, Party B shall issue checks with the
            dates and the amounts respectively prescribed in the preceding
            installment table to Party A and Party A shall cash each check on
            its due date. Before the total repayments for the objects are paid
            off, Party A shall have the ownership of those objects.

2.    Goods Delivery and Check for Receiving:

<PAGE>

After signing of the Agreement, Party B shall provide a Certificate(s) of
Verification to Party A after receiving and verifying the objects. In the event
the supplier shall be a third party, Party B shall directly receive the objects
from the third party and provide a Certificate(s) of Verification to Party A
after receiving and verifying the objects.

3.    Defaults:

Before all obligations are paid off, in the event Party B shall fail to pay in
any installment prescribed in Article 1, all installments of the Agreement shall
be deemed due. In the event the following conditions are incurred, Party B shall
lose the right of paying in installments and Party A may request all repayments
are paid off by Party B at once without sending any prior notice to Party B or
performing legal procedures:

      A.    Any dated check provided by Party B is dishonored for any reason,
            such as not sufficient funds, non-acceptance, or other reasons.

      B.    It is obvious that Party B shall not perform the provisions of this
            Agreement on schedule owing to a growing concern of insolvency on
            the part of Party B.

      C.    Party B randomly disposes of the objects without obtaining written
            approval from Party A.

      D.    Party B is under compulsory executions, such as provisional
            detention, provisional, disposition and provisional execution; or
            under a declaration of bankruptcy, a conciliation application or a
            declaration of liquidation, owing to other obligations.

      E.    The beginning of succession is owing to Party B's death,
            disappearance or other matters and any inheritor(s) of Party B shall
            declare limited succession or renounce right to inherit.

      F.    Party B moves to another place without notifying Party A or refuses
            to change one or more joint guarantees pursuant to notice given by
            Party A.

      Party B shall be liable to pay a penalty for above defaults at an interest
      rate of 0.03% on a daily basis starting from the default date to the
      payoff date.

4.    Liability for Guarantee:

      A.    The Joint Guarantor(s) of Party B shall ensure that Party B performs
            all provisions of this Agreement. In the event Party B makes any
            violation of this Agreement, the Joint Guarantor(s) shall be held
            jointly liable for the repayments and abandon all rights to

<PAGE>

            counterplea that are prescribed in Section 24 of the Obligation
            Chapter of Civil Law of the R.O.C. and other relating regulations.
            Moreover, the joint guarantor shall abide by the following
            conditions:

            I.    The liabilities on guarantees include all payments, check
                  amounts, money that is advanced, service charges incurred at
                  present and in the future owing to Party B for the deal,
                  default penalties, interest, deferred interest, any expenses,
                  compensation for any loss to Party A and encumbrances that are
                  incurred from other subordinate principal obligations owing to
                  non-performance of obligations by Party B.

            II.   Party B may make some amendment to conditions of this
                  Agreement should Party B deem it necessary, with Party A's
                  approval during the term of this Agreement. Thereupon, Party
                  B's Joint Guarantor(s) shall be unconditionally and
                  continuously liable for the liabilities on guarantees
                  regardless on whether the Joint Guarantor(s) receives a prior
                  notice or not.

            III.  Party A may renounce any real right of pledge provided by
                  Party B and have right of acceptance and refusal should there
                  be delay of repayment or replacement of security of Party B
                  without any agreement form obtained from or any notice to
                  Party B's Joint Guarantor. In such cases, the Joint
                  Guarantor(s) shall not have any objections or claim on the
                  decrease of the liabilities of the guarantees.

            IV.   In the event that the Sale and Purchase Agreement or the
                  related notes are incomplete in essential elements, or the
                  claiming procedure is not complete, or there is defeat of
                  right in the security, the party's Joint Guarantor(s) shall be
                  deemed responsible for the liabilities incurred.

            V.    In the event that the Joint Guarantor(s) intends ceasing the
                  guarantee relationship, Party B shall find another Joint
                  Guarantor(s) with Party A's approval and should complete all
                  the formalities in replacing a Joint Guarantor(s). Only after
                  Party A gives a written approval can the liabilities on
                  guarantees be released under this Agreement. Any declaration
                  that liabilities on guarantees are released without Party A's
                  written approval, such as that published in the newspaper or
                  written in a posted letter shall have no legal effect.

      B.    Party A may deem Party B's Joint Guarantor(s) to be incompetent as a
            guarantor if there is a growing concern as to the Joint
            Guarantor(s)'s credibility or competence on guarantee. Should the
            above mentioned situation arise, Party A may request Party B to fund
            a new Joint Guarantor(s) for replacement. Party B shall have no
            rights to object to such replacement action.

<PAGE>

5.    Others:

      A.    An amendment to the Agreement may be made if deemed necessary by a
            party. Should there be amendment during the term of the Agreement,
            the amendment shall have the consent of both parties. In the event
            the conditions of this Agreement are amended without a prior notice
            being given to or a prior approval by the Joint Guarantor(s), the
            Joint Guarantor(s) shall be liable for joint and several liabilities
            and waive any legal defense thereunder. In addition, should Party A
            agree to Party B's delay payment of the obligations, the Joint
            Guarantor(s) shall be continuously liable for joint and several
            liabilities.

      B.    In the event that Party B voluntarily renounced the right of paying
            installments, it shall make all remaining payments in one payment
            before the due date. Upon Party A's approval, the total amount of
            the payment may be reduced by the interest that would be due for all
            undue repayments within the installment periods in accordance with
            the basic lending rate announced by the Taiwan Bank on the date of
            the Agreement between the payoff date and the last installment
            period.

      C.    Party B and Party B's Joint Guarantor(s) shall jointly issue checks
            for the total amount of NT$22,080,000 to Party A. In the event Party
            B shall be deemed to have violated this Agreement, Party A shall
            cash the checks for all obligations hereto.

      D.    Upon signing of this Agreement, Party B shall pay to Party A a
            service charge of NT$600,000.

      E.    The term of this Agreement shall be from August 31st, 2004 to August
            31st, 2006.

6.    Court Jurisdiction:

The location wherein Party A is located shall be the place for the performance
of obligations according to this Agreement. In case of any disputes arising from
this Agreement, both Parties and the joint Guarantor agree that case shall be
subjected to the jurisdiction of Taipei District Court for the first trial of
such lawsuit.

7.    This Agreement shall be in duplicate, each Party shall hold an original

The Parties:

Party A:              Chailease Finance Co., Ltd.

Responsible Person:   /s/ Huang, Ming-Fu

<PAGE>

Party B:              Kid Castle Internet Technologies Corporation

Responsible person:   /s/ Wang, Kuo- An

Address:              1st Floor, No. 148, Chien Kuo Road, Hsin-tien City, Taipei
                      County

Joint Guarantor:      /s/ Wang, Kuo-An

Date:                 August 27th, 2004

Joint Guarantor:      /s/ Chiu, Yu-En

Date:                 August 30th 2004

Date:                 August 27th, 2004

<PAGE>

                                    AGREEMENT

This Agreement is entered into between Kid Castle Educational Corporation
("Party A") and Chailease Finance Co., Ltd. ("Party B").

Whereas Party A and Party B have reached an installment purchase agreement ("No.
93K2988-G Agreement"), and intended to guarantee the fulfillment of this
Agreement, both parties agreed as follows:

1. In addition to the obligations in No. 93K2988-G Agreement, Party A agrees to
furnish NT$4,000,000 to Party B as security for fulfillment of No. 93K2988-G
Agreement (the "security").

2. Party A agrees that Party B may confiscate the security without objection if
Party A violates any conditions consented to in No. 93K2988-G Agreement.

3. Party A shall not offset any installment of this Agreement by the security;
violation of this article will constitute violation of this Agreement, and
Article 2 shall apply.

4. Party B agrees to return the security to Party A with interest calculated (by
actual days) according to the schedule below after Party A settles all rental
(payment) by installment:

<TABLE>
<CAPTION>
                                                                  Return Amount of the
No. of Installment        Interest Date        Annual Rate               Security
------------------      -----------------      -----------        ---------------------
<S>                     <C>                    <C>                <C>
No.1 to No. 15          August 31, 2004           1.40%            ___% of the Security
                                                                   (or NT$2,000,000)

No. 16 to No. 24        November 30, 2005         1.40%            ___% of the Security
                                                                   (or NT$2,000,000)

                                                                   ___% of the Security
                                                                   (or NT$ ________)

                                                                   ___% of the Security
                                                                   (or NT$ ________)

                                                                   ___% of the Security
                                                                   (or NT$ ________)

                                                                   ___% of the Security
                                                                   (or NT$ ________)
</TABLE>

5. Party A agrees that if it requests to settle the rental (payment) in advance,
interest on the security will be calculated by 80% of the rate stated in Article
4.

6. Both parties agree that interest on the Party's security will be calculated
only if (Party A's)

<PAGE>

obligations under the agreement are implemented.

7. This Agreement will be made in two original copies, and each party will keep
one copy for proof. Both parties agree that legal actions arising from this
Agreement shall be subject to the District Court of Taipei, Taiwan as the court
of first instance.

Party A: Kid Castle Educational Corporation
Legal Representative: /s/ Wang, Kuo-An

Party B: Chailease Finance Co., Ltd.
Legal Representative: /s/ Huang, Ming-Fu

Date: August 27, 2004

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}]]