REF:  Circular to All SFC's Registered Securities Dealers and Securities Margin
      Financiers-Financial Resources (Amendment) Rules 2002  SFC Ref: IS/016/2002
      issued on June 13,2002.

Brief: additional of two reuirements (please refer to the original document as final)

1. To apply a 80% haircut to collateral that may be difficult to liquidate quickly because
   of the size of holding relative to monthly turnover (taking an average over 6 months)
   and market capitalization

2. To include a financial adjustment in ranking liability where a firm's total borrowings,
   which are secured by repledging margin client's securities, exceed 65% of aggregate
   margin loan provided to margin clients.

Effective Date: October 1, 2002.

Affected Members: All broker firm with margin client are required to comply these rules.

What tools do you need to make your POP SYSTEM comply with the rule ? :-

1. Update POP system to incorporate with the new calculation method.
2. Purchase market capitalization for need information for calculation.

Your cost and you get :

1. Update of POP system is "free of charge" as a service provided by POP. Get free update !
   You can download this version from August 5,2002.

2. You need to pay HK$600 per month for the cost on trading statistic to HKEX
   and other source, and cost to POP to distribute these information.
   (Annual fee of HK$7,200 is required as we have to pay to HKEX for full year, from
    Jan 2002 to Dec 2002. You need to pay $7,200 for 2002 period from Jan 2003)

3. You need to download your copy of data(encrepted for your company only) every month.

4. You will receive a copy of Trading Statistic directly from HKEX.
   This statistic will be from January 2002 to December 2002 deliver to you every month.

When can you testing the POP system ?
   After you download the latest program, and paid the subscription fee, and you have received
   HKEX delivery of Trading Statistic, you will be able to run the test. POP already have the
   system ready to run and all you need is to sign a cheque payable to POP, and you can make
   you system fulfill the rule.

Can I use the program without paying $7,200 ?.
    Yes, if you think that you can get these information free, and you have cheap labour
    to input data to the POP system.

 **** PLEASE FILL THE APPLICATION FORM AND FAX TO 23909385 FOR CHEQUE COLLECTION ****

------------------------------- ORDER FORM ------------------------------------

Name of Company: ___________________________________________________________________

Broker Number: __________________  Contact Person: __________________________________

Tel: _________________ FAX: ____________________

Email A/c: _________________________________________________________
           (Email a/c is mandatory to receive the Trading Statistic )

We confirm order of Trading Statistic from HKEX and other infomation for filling FRR from POP for the
period of 12 months from January 2002 - December 31,2002 with a flat amount of HK$7,200. POP will arrange
HKEX to send to my email account Trading Statistic data for one year with back day data starting from
January 2002, plus other required data from POP which will be combined into one encrepted file. POP will
post these file on http://www.popsoft.com.hk for
download and use by POP System,in order to produce report for FRR use.

Enclosed please find a cheque #  ____________ of BANK: ______________________________

Please arrange staff to collect the cheque, and also deliver a copy of Non-disclosure agreement from HKEX
for me to sign and chop. POP will deliver to HKEX for arrangement, so that the
HKEX will deliver Trading Statistic directly to my email account.

----------------------------------- end ---------------------------------------------
Note: no signature is required for this form, order confirmation is subjected on clearing of
      company cheque. HKEX require you to sign the non-disclosure agreement form.