Document:

Partnership Agreement

Beijing Hongyuan Recycling Energy Investment
Center (Limited Partner)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

July, 2013

Beijing, China

 

 

    	 

    	 

    

 

 

 

Contents

	1.	Definition	5
	2.	Name and Location of Business for the Partnership Enterprise	7
	 	2.1	Name	7
	 	2.2	Location of Business	7
	3.	Purpose of Partnership and Scope of Business	8
	 	3.1	Purpose of Partnership	8
	 	3.2	Scope of Business	8
	 	3.3	Investment Direction and Method	8
	4.	Term of Partnership	8
	 	4.1	Term of Fund	8
	 	4.2	Term of Partnership	8
	5.	Name and Location of Partners	8
	 	5.1	General Partner	9
	 	5.2	Limited Partner	9
	6.	Method, Amount, and Term of Investment	9
	 	6.1	Subscription	9
	 	6.2	Actual Capital Contribution	9
	 	6.3	Register for Partners	10
	7.	General Partner	10
	 	7.1	Requirement, Selection and Removal of Executive Partner	10
	 	7.2	The Execution of Partnership Affairs	10
	 	7.3	General Partner Acts on Behalf of the Partnership Enterprise	10
	 	7.4	Responsibilities and Rights of General Partner	11
	 	7.5	Termination of the General Partner by the Partnership Enterprise	12
	 	7.6	Unlimited Joint Liability and Breach of Contract of General Partner	12
	 	7.7	Property Transfer of General Partner	13
	 	7.8	Withdraw by General Partner	13
	 	7.9	Authorization and Change of Business Registration	13
	8.	Limited Partners	14
	 	8.1	Limited Liability of Limited Partner	14
	 	8.2	Limited Partner Shall not Execute Partnership Affairs	14
	 	8.3	Property Transfer of Limited Partners	14
	 	8.4	Rights of Limited Partners	16
	 	8.5	Liability and Breach of Contract by Limited Partners	16
	9.	Partner Meeting	17
	 	9.1	Partners Annual Meeting	17
	 	9.2	Prohibited Acts	18

 

    	 

    	 

    

 

	 	9.3	Fund Custodian	18
	10.	Distribution of Profits and Losses	18
	 	10.1	Capital Account	18
	 	10.2	Distribution of Profit	18
	 	10.3	Distribution and Allocation of Non-cash Assets	19
	 	10.4	Assume the Losses	19
	11.	Taxation	20
	12.	Fee Payment	20
	 	12.1	Management Fees of General Partner	20
	 	12.2	Custodian Fees	20
	 	12.3	Operating Cost of Partnership Enterprise	20
	13.	Accounting, Auditing and Other Financial Matters	20
	 	13.1	Accounting	20
	 	13.2	Fiscal Year	20
	 	13.3	Auditing and Financial Statement	21
	 	13.4	Information Disclosure	21
	14.	Admission, Withdraw and Removal	21
	 	14.1	Admission	21
	 	14.2	Withdraw	21
	 	14.3	Removal	22
	 	14.4	Property to be received upon exit of partnership	22
	 	14.5	Property to be received upon removal	22
	15.	Non-competition and Exemption	23
	16.	Transformation between Limited Partner and General Partner	23
	17.	Dissolution and Liquidation	23
	 	17.1	Dissolution	23
	 	17.2	Liquidation	24
	 	17.3	Responsibility of Trustee	25
	 	17.4	Priorities in the Liquidation	25
	18.	Indemnification	25
	19.	Miscellaneous	26
	 	19.1	Amendment to the Agreement	26
	 	19.2	Reservation of Rights	26
	 	19.3	Notice	26
	 	19.4	Severability	27
	 	19.5	Titles	27
	 	19.6	Confidentiality	27
	 	19.7	Law Application and Dispute Resolution	27

 

    	 

    	 

    

 

	 	19.8	Force Majeure	28
	 	19.9	Effectiveness of the Agreement	28
	 	19.10	Execution Copies	28
	 	19.11	Effective Date of the Agreement	28
	 	19.12	Where the Agreement Is Signed	28

 

 

 

 

 

 

    	 

    	 

    

In accordance with the Partnership Business
Law of the People's Republic of China (hereinafter referred to as “Partnership Business Law”) and applicable laws,
Beijing Hongyuan Recycling Energy Investment Center (limited partner) (hereinafter referred to as the “partnership enterprise”),
Hongyuan Recycling Energy Investment Management (Beijing) Co., Ltd. (general partner), and other limited partners (hereinafter
referred to as “partners” together with the general partner) in Exhibit 1 of the agreement signed the partnership agreement
(hereinafter referred to as “the agreement”) on the date as shown on the signature page.

 

		1.	Definition

Unless otherwise specified in the agreement,
the following terms shall respectively have the following meaning: (Agreements defined or specified herein shall include their
amendments, revisions, and supplements.)

 

Partnership Business Law: the Partnership
Business Law of the People's Republic of China, which is passed on August 27, 2006 at the No. 23 conference of the Standing
Committee of the 10th National People’s Congress, and implemented from June 1, 2007

 

Partnership Enterprise/Fund: Beijing Hongyuan
Recycling Energy Investment Center (limited partner)

 

The Agreement: Partnership Agreement of
Beijing Hongyuan Recycling Energy Investment Center (limited partner) and valid revisions and supplements

 

Establishment Date: the date when the business
license of the partnership enterprise is obtained

 

Term of Partnership: as described in 4.2

 

Project Company: Xi’an Zhonghong
New Energy Technology Co., Ltd

 

Investment: investment from the partnership
enterprise on the project company

 

Owner: purchasers of the CDQ waste heat
generated power, which are Jiangsu Tianyu Energy and Chemical Group Co., Ltd. and Boxing Chengli Gas Supply Co., Ltd.

 

Partners: general partner and limited partners

 

Enterprise Registration Office: industry
and commerce administration authorities that could accept the registration of the partnership enterprise according to the law

 

General Partner: Hongyuan Recycling Energy
Investment Management (Beijing) Co., Ltd.

 

Preferred Limited Partner: China Orient
Asset Management Corporation

 

    	 

    	 

    

 

General Limited Partner: Hongyuan Huifu
Venture Capital Co., Ltd.

 

Secondary Limited Partner: Xi’an
TCH Energy Technology Co., Ltd.

 

Xi’an TCH: Xi’an TCH Energy
Technology Co., Ltd.

 

Subscription: the amount next to the name
of partners in Exhibit 1, and revisions to the amount are valid

 

Actual Capital Contribution: sum of capital
paid by partners up to any date

 

Percentage of Actual Capital Contribution:
percentage of capital paid by each partner among all partners up to any date

 

Executive Partner: the only general partner,
executive partner of the partnership enterprise, which is Hongyuan Recycling Energy Investment Management (Beijing) Co., Ltd.

 

Intermediaries: institutes or personnel,
including but not limited to accountants, auditors, appraisers, lawyers, supervision banks (if any), and technical experts, providing
professional services employed during the establishment of the partnership enterprise and investments

 

Share of Property: all rights and interests,
including but not limited to rights obtained from the partnership enterprise, of partners according to applicable laws and the
agreement

 

Default Partner: partner breaches the agreement
due to its performance or non-performance

 

Non-defaulting Partner: partner abides
by the agreement

 

Succeeded Limited Partner: limited partner
succeeded according to the way of transfer in the agreement

 

Estimated Expenses: possible expenses incurred
during the partnership and assumed by the partnership enterprise, including but not limited to operation costs, trustee fee, clearing
fee, and other related fees

 

Breach of Contract in Respect of Transfer:
breach of contract because the transfer was not made in accordance with the agreement

 

Supervision Bank: supervision bank for
the capital of the partnership enterprise specified in the agreement

 

Trust Agreement: the agreement signed between
the partnership enterprise and the supervision bank that all capital of the partnership enterprise is under the trusteeship of
the supervision bank

 

    	 

    	 

    

 

Capital Account: as described in 10.1

 

Affiliated Person: any specified person
who is directly or indirectly controlled by one or more agencies or controls others or any person jointly controlled with the specified
person; the project company cannot be taken as the “affiliated person” for the partnership enterprise or the general
partner

 

Operating Cost of Partnership Enterprise:
as described in 12.3

 

Distributable Assets: cash and other distributable
assets received by the partnership enterprise for selling or dealing with invested projects, or cash or non-cash dividends, interest,
and other income deducted taxes and fees

 

Entities: any legal or economic entities,
such as natural persons, partnership enterprises, or companies

 

Applicable Laws: any applicable laws, rules,
regulations, ordinances, and other legal documents, including but not limited to Partnership Business Law of the People's Republic
of China, Contract Law of the People's Republic of China, and Measures for the Administration of Registration of
Partnership Businesses of the People's Republic of China

 

Business Days: business days of financial
institutions regulated by the State Council of the People’s Republic of China

 

Fiscal Year: from January 1 to December
31, the first fiscal year starts from the establishment date of the partnership enterprise to December 31 of the year

 

		2.	Name and Location of Business for the Partnership Enterprise

		2.1	Name

The name of the partnership enterprise
is Beijing Hongyuan Recycling Energy Investment Center (limited partnership). The enterprise name and identification are owned
by the general partner. In the duration of the partnership enterprise, the partnership enterprise and limited partners could use
the enterprise name and identification for free in advertisement, promotion and public disclosure, but they don’t have ownership
or other rights over the enterprise name and identification. If (1) the partnership enterprise is terminated, or (2) the general
partner termination event occurs as specified in the agreement, or (3) the general partner transfers their assets (except for assets
transferred to affiliated persons of the general partner), then use of enterprise name and identification by the partnership enterprise
and limited partners shall be terminated, and the ownership of the enterprise name and identification still belongs to the general
partner or assigned affiliated persons.

 

		2.2	Location of Business

The location of business for the partnership
enterprise is Room 09, Floor 6, Building 1, No. 43, A, North Street, Xizhimen, Haidian District, Beijing.

The general partner could change the location
of business based on operational needs, but must change the registration at the Administration for Industry and Commerce, and notify
limited partners in written within 30 days after the registration change. Under this clause, the general partner has rights to
sign or represent limited partners signing legal documents and completing registration change. If the law or government authorities
require limited partners to sign legal documents for registration change in person, limited partners shall sign required legal
documents in person.

 

    	 

    	 

    

 

		3.	Purpose of Partnership and Scope of Business

			

		3.1	Purpose of Partnership

The purpose is to invest in the project
company. Investments will be in the form of equity, debt, and/or other forms approved by applicable laws and the agreement. The
interest payment will be distributed as investment return to all of the partners. Unless all of the partners (except for Xi'an
TCH) approve, the purpose shall not be amended.

 

		3.2	Scope of Business

Project investment, investment management,
asset management, investment consultation (subject to the final business scope registered at the Administration for Industry and
Commerce); the scope of business could be changed with unanimous consent from all partners, and the general partner shall change
the registration at the registration authority.

 

		3.3	Investment Direction and Method

The investment shall be used for the project
company’s the construction and operation of two coke dry quenching (“CDQ”) waste heat power generation stations
with Jiangsu Tianyu Energy and Chemical Group Co., Ltd. ("Tianyu") and one CDQ waste heat power generation station with
Boxing County Chengli Gas Supply Co., Ltd. ("Chengli").

 

The investment is in the form of equity
and debt. RMB 3 million is used for 10% of the stock equity of the project company, the rest of the investment is provided to the
project company as entrusted loan.

 

		4.	Term of Partnership

			

		4.1	Term of Fund

The term of the Fund is 6 years from the
date of its establishment.

 

		4.2	Term of Partnership

Term of partnership means the partnership
duration for the preferred and ordinary limited partner and general partner. Upon the expiration of their respective terms, each
partner shall exit from the partnership automatically and obtain properties according to 14.4. The term for the preferred limited
partner is 3 years from the date of its contribution and for the ordinary limited partner is 4 years from the date of its contribution,
unless otherwise approved by the general partner.

 

		5.	Name and Location of Partners

There are four partners of the partnership
enterprise.

 

    	 

    	 

    

 

			

		5.1	General Partner

The general partner is Hongyuan Recycling
Energy Investment Management (Beijing) Co., Ltd. The legal representative is Zhang Zhong, and the address is 201, No. 19, Taipingqiao
Street, Xicheng District, Beijing.

 

		5.2	Limited Partner

Please see Exhibit 1 for names of limited
partners and their capital contributions.

 

Limited partners shall assume responsibilities
to their respective subscription amount.

 

		6.	Method, Amount, and Term of Investment

			

		6.1	Subscription

Total amount of the fund is RMB 460 million.
Exhibit 1 lists the subscription and actual capital contribution for each partner.

 

The general partner shall make a subscription
of RMB 5 million; the preferred limited partners shall make a subscription of RMB 280 million; the general limited partner shall
make a subscription of RMB 100 million; the secondary limited partner shall make a subscription of RMB 75 million.

 

		6.2	Actual Capital Contribution

Please see Exhibit 1 for actual capital
contributions. The general partner shall make capital contribution in full upon the establishment of the partnership enterprise.
The limited partners shall make their respective capital contributions to the Fund according to Notice of Capital Contributions
based upon the satisfaction of the following conditions:

 

		(1)	Tianyu and Chengli have signed agreements with the project company and making commitments for power
purchases;

 

		(2)	Xi'an TCH has completed the pledge of account receivables of its Shenqiu biomass project phase
I and phase II power generation systems;

 

		(3)	Xi'an TCH has completed the pledge of the fixed assets of its Shenqiu project phase I and phase
II power generation system;

 

		(4)	Xi'an TCH has provided an unlimited joint liability guarantee;

 

		(5)	Mr. Guohua Ku has provided an unlimited joint liability guarantee;

 

		(6)	Xi'an TCH has issued a promissory letter to the partnership enterprise in the event that the project
company is unable to repay fully the loan and accrued interest (Xi'an TCH will pay the unpaid amount);

 

		(7)	The partnership enterprise, the project company and the supervision bank have signed a capital
supervision agreement.

 

    	 

    	 

    

 

Capital contributions are completed when
all partners transferred their capitals into the bank account of the partnership enterprise that is opened by the general partner
at the supervision bank. The partnership enterprise and the general partner shall issue the confirmation for capital contributions
to all partners after the completion of capital contribution.

 

		6.3	Register for Partners

The general partner shall
provide the partnership enterprise the register for partners (Exhibit 1), including names, addresses, subscriptions, capital contributions,
and other necessary information.

 

If any information is
changed during the partnership, the general partner shall update the information accordingly. If there is any changes to limited
partners, Exhibit 1 and registration at the Administration for Industry and Commerce shall be updated. Under this clause, the general
partner has rights to sign or represent limited partners to sign legal documents and complete registration changes. If the law
or government authorities require limited partners to sign legal documents for registration change in person, limited partners
shall sign required legal documents in person.

 

		7.	General Partner

			

		7.1	Requirement, Selection and Removal of Executive Partner

The only requirement for the executive
partner is that the executive partner shall be the general partner of the partnership enterprise .

 

By signing this agreement, all partners
confirm that the general partner is selected to be the executive partner of the partnership enterprise.

 

Unless otherwise specified by applicable
laws and regulations, the rights, removal or replacement of the executive partner is subject to terms of this agreement relating
to the general partner.

 

		7.2	The Execution of Partnership Affairs

With unanimous consent of all partners,
the general partner shall execute the partnership business and represent the partnership enterprise. The general partner shall
assign representatives to execute partnership business and has the right to replace representatives. The general partner has the
right to employ a third party other than any partner as the management personnel for the partnership enterprise. The general partner
shall be fully responsible for operation and management of the management personnel.

 

		7.3	General Partner Acts on Behalf of the Partnership Enterprise

Unless otherwise specified in the agreement,
with the resolution or authorization from the board of the general partner, the general partner has the right to enter into any
agreement and proposal, make any commitment, or manage properties (including real estate, intellectual properties, and others)
of the partnership enterprise according to its own discretion to be necessary, beneficial or convenient in order to reach the goal
of this partnership.

 

When the general partner acts on behalf
of the partnership enterprise, the general partner does not have to show any authorization from the partnership enterprise.

 

 

Any acts of the general partner or its
representatives in execution of the partnership enterprise business, including any cooperation and negotiation with any third party
are binding for the partnership enterprise.

 

		7.4	Responsibilities and Rights of General Partner

The general partner executes full management
of the partnership enterprise. The general partner shall fulfill its responsibilities and executes its rights under principle of
good faith and fairness and according to the requirement of this agreement. It shall invest its time into the business and operation
of the partnership enterprise to make sure the partnership is well managed. The general partner has the rights of management and
operation of the partnership enterprise, invested projects, withdraw, and others according to the terms of this agreement.

 

According to the Partnership Business
Law and this agreement, the general partner has following rights, including but not limited to:

 

		(1)	Changing the location of business for the partnership enterprise;

 

		(2)	Dissolving the partnership enterprise in accordance with the agreement;

 

		(3)	Employing a third party other than partners as management personnel of the partnership enterprise
(if any);

 

		(4)	Dispose the properties of the partnership enterprise for distribution purpose;

 

		(5)	Authorizing limited partners to transfer its shares to a third party in accordance with the agreement;

 

		(6)	Executing investments on behalf of the partnership enterprise;

 

		(7)	Employing service providers to provide services to the partnership enterprise;

 

		(8)	Engage activities for partnership to maintain it existence, operation and fulfill its goal;

 

		(9)	Provide daily operational and investment management service to the partnership enterprise;

 

		(10)	Initiate legal proceedings, defense lawsuits, conduct arbitration on behalf of the partnership
enterprise, to take actions to protect safety of the properties of the partnership enterprise, and reduce risks to the partnership
enterprise, general partner, and properties;

 

    	 

    	 

    

 

		(11)	Sign documents on behalf of the partnership enterprise;

 

		(12)	Handle taxes for the partnership enterprise according to national laws and regulations;

 

		(13)	Protect lawful rights and interests of the partnership enterprise;

 

		(14)	Others items authorized by the laws and regulation or items not require partnership meeting decisions
according to the laws and regulations.

 

All acts of the general partner in accordance
with the Partnership Business Law and this agreement are binding for the partnership enterprise.

 

		7.5	Termination of the General Partner by the Partnership Enterprise

According to the dispute resolution procedure
of this Agreement, if the dispute resolution institute agreed by all limited partners confirms that losses are incurred due to
intended acts or material negligence of the general partner, or acts violating the Partnership Business Law, or the general
partner does not make capital contributions within 30 days after the execution of the agreement, all limited partners could choose
an eligible entity as the successor of the general partner. Before the successor of the general partner is chosen, the general
partner shall continue fulfilling its responsibilities.

 

The successor general partner shall change
the registration at the Administration of Industry and Commerce within 15 calendar days of the new appointment described above.

 

Once the appointment described above takes
effect, the replaced general partner becomes a limited partner automatically, and has no liable for making further capital contributions.
Under this circumstances, properties (including but not limited to it shares of income from investment in the partnership enterprise)
of the replaced general partner before its replacement still belongs to the general partner. The general partner and its successor
shall assume unlimited joint liability for the debts of the partnership enterprise occurred before the replacement, but the replaced
general partner is liable to pay compensation to its successor for the debts mentioned above.

 

After signing of documents, the successor
general partner is regarded as the “general partner” even before the departure of the replaced general partner without
further approval or voting requirement from other partners. The successor general partner is responsible for investments and others
responsibilities of the partnership enterprise without the need to terminate the partnership enterprise.

 

For the purpose of compensation for losses,
the original general partner and its affiliates can still receive reimbursements under section 18 of this agreement for: 1) compensation
for damages to the original general partner and its affiliates for projects conducted before the replacement; 2) compensation for
damages to the original general partner and its affiliates for other activities related to the partnership enterprise before the
replacement.

 

    	 

    	 

    

 

		7.6	Unlimited Joint Liability and Breach of Contract of General Partner

When assets of the partnership enterprise
cannot pay for all its debts, the general partner shall assume unlimited joint liability of the partnership enterprise and other
partners.

 

The general partner shall seek great profits
for the partnership enterprise in good faith and honest ways, and the general partner shall pay compensation for any losses to
the partnership enterprise or limited partners due to its intended acts or material negligence.

 

Unless losses occurred due to intended
acts or material negligence of the general partner, the general partner and the management personnel are not responsible for compensation
of the losses.

 

		7.7	Property Transfer of General Partner

The general partner cannot transfer all
or part of its assets in the partnership enterprise unless with written consent of all partners in writing. If the general partner
transfers all assets according to the agreement to a transferee, the transferee will be regarded as the successor of the general
partner upon the execution of this Agreement. The limited partner shall assist in changing registration at the Administration of
Industry and Commerce. Limited partners shall sign legal documents in person if it is required by laws or the government. The successor
could continue the business of the partnership enterprise without terminating the partnership enterprise. The general partner and
its successor shall assume unlimited joint liability for the debts of the partnership enterprise before the change, but the replaced
general partner is liable to pay it back to its successor for the debts.

 

		7.8	Withdraw by General Partner

If 1) the legal withdrawal events for the
general partner occur according to the Partnership Business Law (including under the business license of the general partner
is cancelled, ordered to shut down or the general partner announces bankruptcy); or 2) the general partner termination event occurs
and the successor has not appointed, then the partnership enterprise shall be dissolved and cleared according to section 17 of
the agreement. Nonetheless, the general partner cannot take actions to actively terminate, dissolve or withdraw from the partnership
enterprise, unless otherwise agreed by all partners.

 

		7.9	Authorization and Change of Business Registration

All limited partners make this irrecoverable
special authorization to general partner through the execution of the agreement that general partner is authorized to sign following
documents on behalf of all or any of the limited partners:

 

(1)Execution of the amendment or revision
to this agreement (including partners exiting, withdrawing, ownership transfer, decreasing total capital contribution of the partnership
enterprise according to partnership conference or arrangements of this agreement) by general partner on behalf of limited partners;
When the revision is made according to partnership meeting resolutions, general partner can sign the revision/amendment on behalf
of all limited partners pursuing to the partnership resolutions.

(2)Industrial and commercial registration
/ the change of industrial and commercial registration of the partnership enterprise;

 

    	 

    	 

    

When the change of industrial and commercial
registration is required according to the condition and procedure of this agreement (partner exiting, ownership transfer,
decreasing total capital contribution of the partnership, etc.), the change takes effect to all partners from date when
the condition is met or procedure is completed. The general partner shall update the relative information of partners name list
and change the registration; all partners should coordinate for any necessary changes to the Industrial and Commerce Registration.

 

		8.	Limited Partners

 

			

		8.1	Limited Liability of Limited Partner

Limited partner shall liable for the debts
of the company in accordance with their contribution amount.

		8.2	Limited Partner Shall not Execute Partnership Affairs

Limited partner shall not execute partnership
affairs, shall not action behalf of the partnership. Any limited partners shall not participate in management or investment affair
of partnership enterprises or undertake any action, transaction or business in the name of the enterprise, shall not sign documents
on behalf of the enterprise, shall not bind the enterprise.

 

Limited partners exercise power in accordance
with the “Partnership Enterprise Law” shall not be considered as participate in management or investment affair of
partnership enterprises. To avoid ambiguity, the aforementioned act of the exercise of powers includes:

 

(1)Matters in this agreement need to
be proposed or approved by limited partners;

(2)Matters in this agreement need unanimous
consent by limited partners;

(3)Make suggestion of the operation
and management of enterprises;

(4)Obtain audited financial reports
of partnership enterprise;

(5)In the event involved self- interest,
check the financial information of the partnership enterprise;

(6)In the event business interests
have been materially infringed, claiming rights or proceedings to the responsible partners;

(7)Provide guarantee for the partnership
enterprise;

(8)Exercise voting rights at partnership
meeting.

 

For resolutions approved in partnership
meeting according to this agreement and/or resolutions by the general partners made by its own according to this agreement and/or
change of business registration by general partners according to this agreement, limited partners shall sign relevant legal document
in accordance with the law or requirements of government departments. In the event limited partners refuse to sign the relevant
legal document, general partner shall issue summon notice to limited partners. If the signed document is not received within five
days after the notice, it shall be deemed the limited partners approved the general partner to sign the relevant legal document
on its behalf. All partners agreed the effective date of resolution is the passing day of the resolution according to this agreement,
resolutions of general partner made by its own according to this agreement becomes effective since the day the decision is made,
and will be effective to all the partners and its validity is not affected by the on-going process of the change of business registration.

 

		8.3	Property Transfer of Limited Partners

		8.3.1	In the duration of preferred limited partner, ordinary limited partners shall not transfer, pledge
or withdrawal all or part of their property share of the partnership enterprise.

 

    	 

    	 

    

 

		8.3.2	Preferred limited partners can transfer their property share of the partnership enterprise; general
partner shall assist preferred limited partners to transfer their property share of the partnership enterprise on Beijing Property
Exchanges to list its property shares. Preferred limited partners shall not transfer their property share of the partnership enterprise
without the general partner’ permission.

 

		8.3.3	In the duration of partnership enterprise, secondary limited partners shall not transfer, pledge
or withdrawal all or part of their property share of the partnership enterprise.

 

		8.3.4	Unless otherwise stipulated in agreement, the following conditions shall be met when limited partners
(hereinafter referred to as the transferor) transfer their property shares to third party other than the partners of the partnership
enterprise:

(1) The transferor shall submit written
notice of transfer to general partners ten calendar days in advance.

(2) Transfer of property shares will not
violate the relevant “Partnership Enterprise Law” or other relevant regulations or industry oversight policy, or cause
the business activities of the partnership to be otherwise receiving additional restrictions.

(3) The transferor shall send transfer
invitation to the other partners for the transferred property shares, other partners have the priority rights to purchase the transfer
property shares in accordance with the percentages of their paid capital contribution to the total contribution to the partnership,
and the transfer price to other partners shall not be higher than the price proposed to the outside third party, excluding the
situation the transfer is done through the listed public trading); for the property share other partners do not purchased, transferor
has the right to transfer it to the third party with a transfer price no less than the proposed price to the other partners.

(4) The transferor or the transferee shall
promise to pay all the reasonable cost of the transfer to the partnership enterprise and the general partner, include but not limited
to the relevant cost to register and file with the enterprise registration authority.

(5) The transferee is qualified to be a
party of this agreement and a partner of the partnership enterprise, and its capital contribution shall be in is in compliance
with this agreement and applicable laws;

(6) The transferor and transferee shall
submit the following documents to partnership enterprise: (1) transfer agreement or other document which can prove the transferee
accept this agreement, and (2) Other document, opinion, paper or certification that reasonable requested by the general partner,
include but not limited to materials necessary for registration or filing to Enterprise registration authority and Record management
authority.

General partner can propose other appropriate
conditions based on their own judgment, to guarantee the transfer is compliance with the applicable law and in the meanwhile will
not have negatively effect to the enterprise tax treatment and other partners. If general partner thinks there is possibility of
the above events happened based on their independent judgment, then general partner shall have right to terminate this transfer,
the transferor shall have No objection to this.

 

    	 

    	 

    

 

		8.3.5	When transferee is accepted and succeed the limited partners, all conditions applicable to the
transferor in this agreement shall applicable to the succeeding partner, and the succeeding partners shall inherit all rights and
obligations based on the transferred property shares. The person is considered as the succeeding partner only on the condition
that all the terms in this agreement are satisfied and the person is listed on the partner roster.

 

 

		8.3.6	Any transfer breaches the agreement shall be deemed invalid transfer. In such event, the enterprise
does not recognize the transferee’s right to the shares. The transferor shall continue to fulfill its responsibilities and
obligations of this agreement.

 

		8.3.7	The general partner shall make necessary amendments to Annex I to reflect the relevant change of
partners and investment subscribed for any transfer made based on this term.

 

		8.4	Rights of Limited Partners

		8.4.1	Limited partners have the rights to know the operation of the partnership enterprise. Limited partners
have the rights to check the investment record and obtain financial and operation information (include but not limited to accounting
books) in order to understand the business and investment position of the enterprise and the operation of the invested enterprises.

 

		8.4.2	The right to obtain income according to this agreement.

 

		8.4.3	The right to supervise general partner to execute the partnership affairs.

 

		8.4.4	In the event partnership enterprise’s interests are materially violated, limited partners
have the right to claim rights or file law suits against responsible partners.

 

		8.4.5	Other rights listed in “Partnership Enterprise Law” and relevant regulations, or stated
in this agreement.

 

		8.5	Liability and Breach of Contract by Limited Partners

If a third party has the reason to believe
limited partner is a general partner and makes transaction with it, then the limited partner shall take same responsibility as
general partners.

 

In the event limited partners make unauthorized
transaction with third party on behalf of the partnership enterprise, the limited partners shall assume full liability to any costs
happened to the enterprise or other partners.

 

If (1) any limited partner failes to pay
all or part of the capital contribution according to this agreement (breach of payment); or (2) any limited partner breaches the
agreement to transfers all or part of its property shares of the enterprise (breach of transfer), the general partner can announce
such limited partner is “a breaching partner”. For limited partner who is considered as “a breaching partner”,
the general partner has the right to take remedy actions to protect other partners.

 

    	 

    	 

    

 

In the event of above breach, the general
partner has right to require the breaching partner to pay penalty of one tenth of its capital contribution, in the meanwhile, the
breaching partner can be terminated after consent by the general partner.

 

The breaching partner has no right to vote,
resolution or decision under this agreement or “Partnership Enterprise Law” or other relevant regulations.

 

The general partner has right to seek any
other legal remedies for breach of agreement by the breaching partner. During the implementation of this agreement, any cost and
fees (including legal fees) incurred due to breach behavior by breaching partner shall be borne by the breaching partner. Any such
payment by limited partners does not constitute as payment of its capital contribution to this partnership enterprise.

 

		9.	Partner Meeting

 

			

		9.1	Partners Annual Meeting

General partner shall urge partners to
hold partners’ meeting annually from the first full calendar year upon the enterprise established (Partners annual meeting).
Special meeting can be held if proposed by the general partner or limited partners represent who has more than 50% of the paid
capital of the partnership. General partner shall be responsible for convening the meeting and inform each partner about the conference
time, location and agenda at least 10 days early. On the annual meeting, general partner shall report the historic investment performance
of the enterprise and communicate fully with each limited partner. Limited partner can ask the general partner questions about
the partnership affairs; the general partner shall answer questions to the extent permitted by law and this agreement. The annual
meeting costs are the operation expenses of this partnership enterprise.

 

Partners’ meeting is responsible
for decision-making of project investment and other matters not related to the main business. Participating the annual meeting
doesn't provide limited partners right to involve in the investment activities or other activities. Partners exercise voting rights
in accordance with their paid capital percentages.

 

Partners' meeting to discuss and decide
the following matters:

(1)Change the partnership name proposed
by general partner;

(2)Merger, division or organization
changes of partnership enterprise;

(3)Dissolution and liquidation of the
partnership enterprise (except to the events authorized to the general partner stated in this agreement);

(4)Removal and replacement executive
partner (general partner);

(5) Extension of the term of this partnership;

(6)Change of partners goal or change
invest project;

(7)Other matters according to law and
regulation and this agreement.

 

    	 

    	 

    

 

The above matters shall be approved by
partners represent more than two thirds of the paid capital contribution (except as otherwise agreed in this agreement).

 

Matters such as potential project investment
or implementation of the relevant partnership affairs shall not be proposed for resolution in partners’ meeting, and limited
partners shall not try to impact the management of enterprise or other matters through partners’ meeting.

 

Upon the approved of general partner, the
partners’ annual meeting may be held by written consent.

 

		9.2	Prohibited Acts

The partnership enterprise shall not make
guarantees for outside third parties.

 

		9.3	Fund Custodian

The partnership enterprise shall commission
a nationwide commercial bank with qualification for custody of cash in the account of partnership enterprise. All partners sign
this agreement shall be deemed to have authorized general partner to choose the custodian bank.

 

All cash payment in the partnership enterprise
shall comply with the agreed procedures in “Escrow Agreement” made with custodian bank.

 

		10.	Distribution of Profits and Losses

 

			

		10.1	Capital Account

General partner shall establish ledger
for each partner (“Capital account”). General partner shall adjust each partner’s account on the last day of
each calendar year according to the following standards.

 

At the end of each year, the increases
in each partner’s capital account are :( 1) paid capital contribution within the year; (2) benefits of the year. The decreases
in each partner’s capital accounts are: (3) the cash, other securities and assets that have been distributed to the partner
within the year; (4) Costs and losses partners should bear. Further adjusted shall be made according to any special amortization
or adjustment in this agreement.

 

		10.2	Distribution of Profit

General partner shall not make minimum
income guarantees for the investment return. Any items in this agreement shall not be considered as a fixed income guarantee to
limited partners.

 

Within 3 working days upon receipt of each
interest payment from the Project Company on the 20th of the last month of each quarter after the entrusted loan has been released
to the borrower, the distribution of the cash interest income shall be made according to income distribution principle of this
partnership enterprise, and the last distribution is the expiration day of the partnership term.

 

    	 

    	 

    

 

The distribution of the income (after deduction
of necessary operating costs of the partnership) shall be as follows:

(1)distribute to the preferred limited
partner until it has reached its cap amount (its capital contribution × 13% ÷4) ; however, for the first income distribution--i.e.
the first interest payment by the Project Company to the Fund. The cap should be: its capital contribution × 13% ×
the number of days from the actual capital contribution to the interest payment ÷360;

 

(2)distribute to the ordinary limited
partner until it has reached its cap amount (its capital contribution × 13% ÷4); however, for the first income distribution--i.e.
the first interest payment by the Project Company to the Fund--the cap should be: its capital contribution × 13% ×
the number of days from the actual capital contribution to the interest payment ÷360;

 

(3) distribute to the general partner
until it has reached its cap amount (its capital contribution × 13% ÷4); however, for the first income distribution--
i.e. the first interest payment by the Project Company to the Fund--the cap should be: its capital contribution × 13% ×
the number of days from the actual capital contribution to the interest payment ÷360;

 

(4)The remaining distributable cash
income is owned by partnership enterprise.

 

Xi'an TCH will not be entitled to participate
in any distributions until the Project Company fully repays all principal and interest owed to the Fund.

 

For other income (other than interest income from the Project
Company), if it needs to be distributed, the distribution method shall be decided by the general partner, preferred limited partner
and ordinary limited partner.

 

		10.3	Distribution and Allocation of Non-cash Assets

For the distribution of non-cash assets:
if it is prior to the liquidation of the partnership, then Xi'an TCH has the obligation to purchase such non-cash distributable
assets of the Fund at fair market value and the general partner shall also use its best efforts to try to sell such assets to avoid
the distribution of non-cash assets. If such assets cannot be timely realized into cash, general partner shall choose to set this
assets as owned by all partners.

 

For non-cash distribution, if non-cash
assets are public traded securities, the value of securities is based on the average transaction price of 15 trading days prior
to the distribution decision making day; for other non-cash assets, general partner has right to hire an independent agency to
assess and determine its value.

 

During the distribution process of non-cash
assets of the partnership enterprise, general partner shall assist partners on their registration of the assets transfer.

 

		10.4	Assume the Losses

All the losses after partnership liquidation
priority orders according to this agreement is borne by all or part of the partners.

 

    	 

    	 

    

 

Limited partners’ liability is limited
to their paid capital contribution, general partner has unlimited liability to the partnership enterprise.

 

When enforcement of the assets of the partnership
is taken by the people's court, all partners shall be informed. Other partners have the right of first refusal for such assets
under the same conditions.

 

Profit distribution and losses sharing
within the duration of enterprise can be adjusted upon agreement by all partners.

 

		11.	Taxation

Partners shall pay tax according to “Partnership
Enterprise Law” and the relevant tax provisions of the nation.

 

		12.	Fee Payment

			

			

		12.1	Management Fees of General Partner

During the existence of the enterprise,
general partner shall not ask for partnership enterprise management fees from limited partners.

 

		12.2	Custodian Fees

The partnership enterprise shall choose
a commercial bank as custodian bank. Payment and its terms for custodian fees shall be subject to the agreement signed between
partnership enterprise and the custodian bank.

 

		12.3	Operating Cost of Partnership Enterprise

All the following operation expense (partnership
enterprise operation costs) shall be paid by partnership enterprise from it revenue, which shall include but not limited to:

 

(1)Partnership establishment costs,
which is the agent fees and other costs relevant to the establishment of the enterprise in the set up stage, include government
fees and so on (business registration and change fees);

(2)Service agent costs involved in
the investment project;

(3)Referral fees and commissions fees
for project referrals;

(4)Taxation and fees for to obtain,
acquire, hold and sell the enterprise’s assets;

(5)Special report preparation costs
for limited partners;

(6)Annual audit fees (include audit
firm business travel expense);

(7)Attorneys' fees and related travel
expenses for legal service provided to partnership enterprise;

(8)Financial advisory fees and related
travel expenses for financial service provided to partnership enterprise;

(9)Litigation, arbitration and public
announcements fees for which enterprises as the mainstay;

(10)Partners’ annual meeting
fees, include travel expense for general partner to attend or organize such meeting;

(11)Custodian Fees, entrusted loan
fees, bank accounts regulatory fees and so on;

(12)Other reasonable costs relevant
to the valid and subsisting of partnership enterprise.

 

    	 

    	 

    

 

		13.	Accounting, Auditing and Other Financial Matters

			

		13.1	Accounting

General partner shall maintain the accounting
statement during the duration of enterprise and keep three years after the dissolution and such statement shall be the basis of
financial statements submitted to the partners in accordance with relevant regulation.

 

		13.2	Fiscal Year

The fiscal year of partnership enterprise
is the same with calendar year; the first fiscal year starts from the establishment of the enterprise and ends at December 31 of
the same year.

 

		13.3	Auditing and Financial Statement

Auditor shall audit the financial reports
of the enterprise at the end of each fiscal year. The change of auditor shall be decided by general partner.

 

General partner shall submit the following
financial statement (annual financial reports) to limited partners within 120 days after the fiscal year ends, in the form of mail,
fax, email or other way.

(1)Balance sheet;

(2)Profit and loss account;

(3)Cash flow statement;

(4)Change of balance in capital account
of each partner during the reporting period.

 

		13.4	Information Disclosure

If limited partner has any objections to
the report submitted by general partner, limited partner has the right to review the accounting books of enterprise in personal
or by its authorized personnel during the working hours of general partner and custodian bank.

 

		14.	Admission, Withdraw and Removal

			

		14.1	Admission

If a new partner wants to join the partnership,
it shall be approved by general partner and enter into written agreement. When entered the written agreement, general partner shall
notify the operation and financial condition of the partnership to new partner.

 

New partner shall have same rights and
same responsibility as the old partners. New partner shall have unlimited liability to partnership enterprise; new limited partner
shall bear the liabilities of enterprise according to their percentage of capital contribution.

 

		14.2	Withdraw

(1)Partners can withdraw under the
following circumstance:

a)The event for withdrawal stated in
the agreement occurs;

 

    	 

    	 

    

 

b)Approved by all partners except secondary
limited partner;

Limited partner shall not withdraw before
the partnership dissolution unless otherwise stated in the agreement. Losses shall be compensated to other partners caused by unauthorized
withdraw.

(2)Partners are considered withdrawal
under the following circumstance:

a)Natural death or declaration of death
of partners;

b)Insolvency;

c)As a legal entity or other organization
of partners, the business license is revoked, closure or bankruptcy;

d)Loss of relevant qualification of
such partner that is required by law or the partnership agreement;

e)All its property shares owned by
such partner in enterprise are enforced by the people's court;

f)Expiration of the partnership term.

 

		14.3	Removal

The removal of executive partners (general
partner). When executive partner (1) fails to fulfill its capital contribution obligations; (2) intentional or gross negligence
cause the company suffered heavy losses, or suffer substantial indebtedness, or (3) material breach of agreement and cause heavy
losses.

 

The removal of executive partner shall
be carried out under the following procedure:

(1)In the circumstance limited partner
representing more than one third of the paid capital contribution proposes and provides sufficient evidence of the above conditions,
the removal of executive partners shall be discussed at partners’ meeting or special partner meeting;

(2)The resolution of removal of executive
partner shall be made after approved by all limited partners;

(3)If the partners haven't reached
a resolution to appoint a new executive partner when they remove the current executive partner, then the enterprise shall go into
liquidation process.

 

Under the following circumstance, the limited
partners can be removed after written consent by general partner:

(1)Fails to fulfill its capital contribution
obligations;

(2)Intentional or gross negligence
that cause the company suffered heavy losses;

(3)Breach of agreement and laws.

The removed partner shall be informed by
a written notice for the removal. The removal is effective from the date notice received by removed person.

 

		14.4	Property to be received upon exit of partnership

(1) If a partner exits from the partnership
due to the expiration of the term under section 4.2, the exiting partner shall settle the payment with the other partners according
financial conditions of the partnership when it exits. Considering the complexity of determining the value of the partnership at
certain specific time point, all parties agree that the fair value for the exiting partner shall be: its capital contribution ×(1
+ m x n). After deducting the payments already received from the partnership and other payment responsibilities of such partner
to other partners if any, the exiting partner shall be paid at the fair value for any unpaid portion.

 

    	 

    	 

    

 

m=the term for such partner in this partnership

n= the number indicated in the exhibit
I

 

(2) If a partner exits before the expiration
of its term but with unanimous consent of the other partners, all parties agree that fair value for the exiting partner is: its
capital contribution × [1+ the number of the completed full years that it stayed in the partnership × 13%] + its capital
contribution × (the additional number of days that it stayed in the partnership for the uncompleted final year ÷360)×
13%. After deducting the payments already received from the partnership and other payment responsibilities of such partner to other
partners if any, the exiting partner shall be paid at the fair value for any unpaid portion.

 

		14.5	Property to be received upon removal

If a partner is removed pursuing to the
agreement, unless there is other specific arrangement in this agreement, the removed partner shall settle the payment with the
other partners according financial conditions of the partnership when it exits. In consideration of the complication regarding
valuing the partnership enterprise, all parties agree the fair value for the exiting partner will be his actual paid capital contribution.
After deducting the payments already received from the Fund as well as any reimbursement to other partners, if any, the exiting
partner shall be paid at the fair value for any unpaid portion.

 

		15.	Non-competition and Exemption 

Unless otherwise specified in this agreement,
limited partner is allowed to engage in or cooperate with others the business which is competing with the partnership enterprise.

 

Unless otherwise specified in this agreement,
partner can have transaction with the partnership enterprise.

 

All the partners particularly acknowledge
that the situations described below are not regarded as competitive behaviors with the partnership:

 

(1)General partner or its affiliated
parties provide consultant and management services to other enterprises;

(2)General partner make other investment
with its own capital;

(3)Other partnership enterprise managed
by General partner or its affiliated parties engage in similar business or behavior;

(4)General partner or its affiliated
parties raise offshore foreign currency fund to make investment.

 

The involvement in above mentioned situations
by the affiliated parties of general partner are not regarded as competitive business operated by general partner itself or cooperated
with others on such competitive business.

 

		16.	Transformation between Limited Partner and General Partner 

Unless otherwise specified in this agreement,
general partner cannot be transformed into limited partner and limited partner cannot be transformed into general partner.

 

    	 

    	 

    

 

		17.	Dissolution and Liquidation

			

			

			

		17.1	Dissolution

When any of the following situations occurs,
the partnership enterprise shall be dissolved:

(1)it doesn't receive the contribution
from the limited partners within 12 months of its establishment;

(2)expiration of the term of the partnership
;

(3)the partners (excluding partners
who violate the agreement) meeting determines to dissolve;

(4)the event of termination of general
partner has occurred and parties cannot reach an agreement as to the replacement of the general partner;

(5)the partnership loses its business
license or is ordered to close or terminate by a government agency with the authority;

(6)any other dissolution event pursuant
to the Partnership Enterprise Law of China or the partnership agreement.

 

When above item (1) or (2) occurs, the
dissolution of the partnership enterprise can be decided by general partner without partners meeting. Under such circumstance,
general partner should send out dissolution notice to all limited partners within five business days after it makes dissolution
decision.

 

		17.2	Liquidation

After the decision of dissolution of partnership
enterprise is made, the trustee shall handle all liquidation and settlement of the credit and debt of the partnership, as well
as handling all unresolved affairs and make corresponding notice and announcement to creditor.

 

All partners will be the trustee. All partners
agree that the general partner will be designated to deal with liquidation affairs after above mentioned dissolution occurs.

 

After the confirmation of trustee, all
non-cashed assets of the partnership enterprise will be managed by the trustee.

 

However, if the trustee is not the general
partner, the general partner is obliged to assist the trustee cashing the non-cash assets or disposing them pursuing to the agreement.

 

Upon request and trustee’s approval
in advance, some of limited partners may accept the non-cashed equity shares in the project company of the partnership instead
of cashing it. The premise of the trustee to approve such request is that it conforms to the applicable laws and does not affect
the interests of the other partners.

 

Upon dissolution, the assets of the partnership
enterprise shall go through the liquidation process and shall be distributed to the partners according to the following sequence:

 

    	 

    	 

    

 

(1)to the preferred limited partner
(if any) until it receives its full contribution amount;

(2)to the ordinary limited partner
until it receives its full contribution amount;

(3)to the preferred limited partner
until its annual investment return for its contribution reaches its annual return cap indicated in this agreement (the cap is the
value of n stated in the exhibit I of the agreement);

(4)to the ordinary limited partner
until its annual investment return for its contribution reaches its annual return cap indicated in this agreement (the cap is the
value of n stated in the exhibit I of the agreement);

(5)if there are any assets remaining
after steps 1 through 4, then they shall be distributed to the secondary limited partner and the general partner according to their
percentage of capital contribution.

 

The annual investment return percentage
in this agreement refers to the percentage of the income the partner receives from the partnership enterprise against its actual
capital contribution amount on an annual basis from the date when the partner contributed capital to the fund raising account.
The formula is just used for interpreting a business definition of the annual investment return percentage and shall not constitute
the commitment by the partnership or certain partners to other partners that certain things definitely will happen in a legal fact
matter .

 

		17.3	Responsibility of Trustee

(1) Liquidate the assets of the partnership
enterprise and prepare the balance sheet and the assets list;

(2) Handle unresolved affairs related to
liquidation of the partnership enterprise;

(3) Pay off tax owed by the partnership
enterprise;

(4) Manage all credits and debts of the
partnership enterprise;

(5) Manage the remaining assets after settlement
of debts of the partnership enterprise;

(6) Participate in litigation or arbitration
on behalf of the partnership enterprise;

(7) Prepare liquidation report and have
the report to be signed and sealed by all partners and submit it to the enterprise register agent within 15 business days to cancel
the registration of the partnership.

 

		17.4	Priorities in the Liquidation

Upon liquidation, the assets of the partnership
enterprise shall be liquidated and distributed in following sequence:

(1)liquidation cost;

(2)employee salaries and social securities,
as well as statutory compensation (if applicable);

(3)tax owed (if applicable);

(4)debt of the partnership enterprise;

(5)distribution among partners pursuing
to item 17.2 of the agreement

 

Above mentioned step (1)、(2) and
(3) must be paid in cash; if there is no enough cash, other assets should be cashed out to make such payment; payment method of
above step (4) should be negotiated with the creditors; step (5) should be distributed according to the varieties of the remaining
assets pursing to the agreement.

 

		18.	Indemnification 

If general partner and its affiliates (including
but not limited to its officers, directors, shareholders, partners and employers) or any third party on behalf of the partnership
upon the request of the general partner in business, investment or other activities of the partnership suffer or may suffer any
loss, liabilities or expenses resulted from the involvement in the affairs of the partnership enterprise, the partnership should
make its best effort to reimburse such parties within the maximum limit pursuing to the applicable laws.

 

    	 

    	 

    

 

The general partner may have the partnership
enterprise to set up certain reserve fund, trust account or similar arrangements at a reasonable amount for the purpose of this
section, if it considers as appropriate and necessary. The general partner may also buy some reasonable insurance for part or all
of above mentioned persons for its obligations under this section.

 

The protection to the above mentioned persons
shall be continuous no matter whether they still keep their original positions as they first acquire the rights under the agreement.
Any amendment or revision to the agreement will not reduce or limit any reimbursement to above mentioned persons for the activities
conducted before the amendment. The obligation under this section shall continue until the partnership enterprise completes its
liquidation.

 

Despite of otherwise said in the agreement,
if the assets of the partnership enterprise are not enough for the partnership enterprise to perform its whole or partial 1) obligation
under this section; 2) other express obligations under the agreement, the general partner may request partners return sufficient
amount of money that have been distributed to them, no matter such obligation occurred before or after the last day of the term
of the partnership. However, the returning amount of each limited partner shall be limited to the money that has been distributed
to it as to the date when the general partner makes such crawl back request. The crawl back amount for each partner shall be made
according to their contribution percentage to the partnership.

 

		19.	Miscellaneous

			

			

		19.1	Amendment to the Agreement

Unless otherwise agreed in this agreement,
any amendments to this agreement must be approved by all partners. Any matters uncovered in the agreement and any amendment of
this agreement shall be discussed and agreed by all parties and signed in a written amendment agreement. If there is any conflict
between amendments and this agreement, the amendments shall prevail.

 

		19.2	Reservation of Rights

(1) Any partner who has not exercised its
rights or take any actions against the breach of agreement by other partners shall not be considered as abandon its rights or waive
it claims for the liabilities of the breaching party. Any party who waives any rights or claims against the other party on certain
matters shall not be considered as abandon its rights or claims against such party on any other matters. Any waiver should be made
in writing.

 

(2) If some terms in this agreement are
determined to be invalid or cannot be implemented according to current law, other provisions of the agreement shall continue to
be valid. In that event, the legality, validity, and enforceability of other provisions of the agreement are still exist and all
parities shall replace invalid terms with other effective terms which should be as close as possible to the original purposes and
principles of the term.

 

    	 

    	 

    

 

		19.3	Notice

(1) Unless otherwise stipulated in this
agreement, all notices under this agreement among all parties should be in Chinese and delivered by specially-assigned person,
or sent in registered mail, facsimile or EMS.

 

(2) If the correspondence address or contact
address of a partner is changed, the partner should make written notice to the general partner within 3 days since the change.
Any party violates such requirement, unless it says otherwise in the law, the party who has address changed should be responsible
for all possible losses incurred by the change.

 

Any notice, request or information under
the agreement should all be in written format and sent or delivered to below address to be considered as a complete delivery:

 

For delivering to partnership enterprise:

Address: 201, No. 19 Tai Ping Qiao Avenue,
West City District, Beijing

Fax: 010-88085340

Tele: 010-88013701

Attendance: Zeng Jian

 

For delivering to general partner:

Address: 201, No. 19 Tai Ping Qiao Avenue,
West City District, Beijing

Fax: 010-88085340

Tele: 010-88013701

Attendance: Zeng Jian

 

For delivering to each limited partner,
the contact information shall be provided in written by each limited partner later.

 

Any limited partner may change its correspondence
address any time by making written notice to the partnership enterprise and the general partner.

 

General partner and partnership enterprise
may change its correspondence address any time by making written notice to limited partners.

 

		19.4	Severability

If any provision of the agreement or any
application to any person or circumstance is determined invalid, other provisions or validity of the application to other person
or other circumstance shall not be affected.

 

    	 

    	 

    

 

		19.5	Titles

Each title of the agreement is for convenient
reference only. The title shall not otherwise define, limit or extent the provision of the agreement.

 

		19.6	Confidentiality

All parties agree that all materials and
information provided by one party to other parties of this agreement or for the transactions mentioned in this agreement shall
be kept confidential and cannot be disclosed to any other party (except for the employees and directors of disclosing party that
need to know such information) without written consent of the other party, except for (1) to investors for the potential transactions;
(2) to attorneys, accountants, counselors, or advisors related to the transaction; (3) to relevant governments or authorities as
applicable law and regulations require.

 

		19.7	Law Application and Dispute Resolution

The formation, effectiveness, interpretation,
performance and dispute of the partnership agreement are subject to current Chinese law and administrative regulations and policies
(excluding Hong Kong special administrative region, Macao special administrative region and Taiwan region).

 

Any dispute that cannot be solved by negotiation
shall be submitted to the court where this agreement is executed. The losing party should assume the court fees.

 

During legal proceedings, all parties should
continue to perform its other obligation except for the disputed part.

 

		19.8	Force Majeure

“Force Majeure” refers to the
unforeseeable, uncontrollable or unavoidable issues which interfere with, affect or delay all or partial performance of the agreement,
which includes but not limited to earthquake, typhoon, flood, fire, pestilence, other natural disaster, war, coup, riot, strike,
etc.

 

		19.9	Effectiveness of the Agreement

The agreement will be effect on each party
and its heirs, successor, assignee or procurator, as well as its consigner, trustee or nominee if any.

 

		19.10	Execution Copies

The agreement has in 10 duplicates and
each has same legal effect. General partner holds two copies. Each limited partner holds one copy. Other copies will be used to
carry out relevant procedure for the partnership enterprise.

 

		19.11	Effective Date of the Agreement

The agreement becomes effective when it
is signed and sealed by all parties. Any amendment to the agreement will become effective according to the requirement of the agreement.

 

		19.12	Where the Agreement Is Signed

The agreement is signed in Beijing.

 

 

    	 

    	 

    

 

 

 

Exhibit I

 

 

	
         

        Name
	Subscribed Capital Contribution (RMB: yuan)	Paid Capital Contribution (RMB:yuan)	
         

        Date of Payment
	
         

        Value of n
	
         

        Classification

	Hongyuan Recycling Energy Investment Management (Beijing) Co., Ltd.	5 million	 	2013	13%/annual 	General Partner
	China Orient Asset Management Co., Ltd. 	280 million 	 	2013	13%/annual 	Preferred Limited Partner 
	Hongyuan Huifu Venture Capital Co., Ltd.	100 million	 	2013	13%/annual 	Ordinary Limited Partner 
	Xi’an TCH Energy Technology Co., Ltd.	75 million 	 	2013	------	Secondary Limited Partner

 

 

 

[Signature page to follow]

 

    	 

    	 

    

 

Hongyuan Recycling Energy Investment Management
(Beijing) Co., Ltd. (Sealed)

Executed Date:

 

Hongyuan Huifu Venture Capital Co., Ltd.
(Sealed)

Executed Date:

 

Xi’an TCH Energy Technology Co.,
Ltd. (Sealed)

Executed Date:Agreement for Entrusted Loan

(Applicable for Corporate Banking)

 

Number: 073001-1 (2013) Entrusted Loan
for Enterprises in Shaanxi, Industrial Bank Co., Ltd

 

Trustor: Beijing Hongyuan Recycling Energy
Investment Center (limited partnership)

Address: Room 9, 6th Floor,
Building 1, No. 43, A, North Street, Xizhimen, Haidian District, Beijing

Representative: Zhang Zhong

Contact: Xie Fei

Job Title: Financial Controller

Postal Address: 201, 2nd Floor,
No. 19, Taipingqiao Street, Xicheng District, Beijing

Zip Code: 100033

Telephone: 010-88013628

Fax: 010-88085340

 

Trustee: Xi’an Branch, Industrial
Bank Co., Ltd

Address: No.1 Tangyan Road, Xi’an

Representative: Tang Zhengjun

Contact: Lu Benwei

Job Title: Client Manager

Postal Address: No. 1, Weiyang Road, Xi’an

Zip Code: 710016

Telephone: 029-86518476

 

Borrower: Xi’an Zhonghong New Energy
Technology Co., Ltd

Address: 40102, Building 3, G Block, Feng
Lin Lu Zhou, No. 2, 4th Keji Road, Gaoxin District

Representative: Ku Guohua

Contact: Wu Zhigang

Job Title: Vice President

Postal Address: 12/F, Tower A, Chang’an
International Building, No. 88, Nan Guan Zheng Jie, Xi’an

Zip Code: 710000

Mobile Phone: 13630252595

Fax: 029-87651099

 

    	 

    	 

    

 

 

 

The agreement was signed in Xi’an,
Shaanxi

 

According to the Agreement for Entrusted
Loan (No: 073001 (2013) Entrusted Loan for Enterprises in Shaanxi, Industrial Bank Co., Ltd) signed on July 30, 2013 between the
consignor and the lender, the lender grants the load to the borrower.

 

Item 1, Definition and Interpretation

Unless otherwise specified in written,
terms are defined and interpreted as follows:

		1.	Entrusted loan means the fund capital provided by the trustor is loaned to the target borrower
for specified uses, in specified amounts, over specified maturity periods and at a specified interest rate as instructed by the
trustor through Industrial Bank (the trustee), which helps retrieve the principal sum with interest on the trustor’s behalf.
The trustee only charges the commission and is not liable for any risks.

 

Loan means
the capital provided to the borrower according to the agreement.

 

Borrowed money
means the capital obtained after the borrower raises application to the trustee and the trustor approves the application.

 

All parties
agree that the trustee shall provide the same amount of capital as that the borrower received according to the agreement.

 

		2.	Risks include but not limited to law and policy risk, credit risk, market risk, operating risk,
force majeure and others.

 

Law and policy
risk means the entrusted loan cannot be recovered or fully recovered on schedule due to adjustment and change of nation policies,
laws and regulations.

 

Credit risk
means the borrower does not fulfill the repayment liability according to the agreement.

 

Market risk
means the entrusted loan cannot be recovered or fully recovered on schedule due to change of policies, economic cycles and market
prices.

 

Operating
risk means the entrusted loan cannot be recovered or fully recovered on schedule due to poor management of the entrusted loan.

 

Force majeure
means the entrusted loan cannot be recovered or fully recovered on schedule due to unforeseeable, unavoidable and insurmountable
circumstances.

 

Others mean
risks besides the risks described above.

 

    	 

    	 

    

 

 

 

		3.	Debt means the debt (including the principal, interests, default interests, compound interests,
and penalties, indemnification for loss and fees for the creditor realizing the credit) after the borrower (debtor) raises application
to the trustee (creditor), and the trustee provides the entrusted loan to the borrower with approval of the trustor.

All parties
agree that the credit of the trustee shall be corresponding to the debt of the borrower.

 

		4.	Fees for the creditor realizing the credit means litigation (arbitration) costs, counsel fees,
travel expenses, execution fees, costs for preservation and other necessary fees for the trustee realizing the credit by raising
legal proceedings or arbitrations.

 

		5.	Working days in the agreement mean the business days of the trustee bank. During the execution
of the agreement, if any day for withdraws or repayment is not a business day, it should be postponed to the next business day.

 

Item 2, Amount of Entrusted Loan

The amount of the entrusted loan is RMB
457,000,000.

 

Item 3, Purpose of Entrusted Loan

The entrusted loan will be used by the
borrower to build two coke dry quenching (CDQ) waste heat power generation projects at Jiangsu Tianyu Energy and Chemical Group
Co., Ltd. and one CDQ waste heat power generation project at Boxing Chengli Gas Supply Co., Ltd. Without written consent of the
trustor, the borrower cannot change the purpose of the entrusted loan.

 

Item 4, Term of Entrusted Loan

		1.	The term of the entrusted loan is 60 months, from July 31, 2013 to July 30, 2018.

 

		2.	If the loan is granted at one time, the loan grant date will be the date recorded on the receipt
for the loan. If the date recorded on the receipt is late than the grant date, the expiring date shall be prolonged.

 

		3.	According to the instruction of the trustor, the loan will be granted on the following days, (not
applicable). The trustee will transfer the loan to the borrower.

 

		4.	If the loan is granted in separate installments, the expiring date for separate installments shall
be the same, which is the expiring date for the loan confirmed based on the grant date recorded on the receipt for the first installment.

 

		5.	If the trustee calls in the loan in advance according to the agreement or the trustor’s instruction,
then the expiring date will be changed accordingly.

 

Item 5, Interest Rate and Repayment of
Interests

		1.	Based on the agreement of the trustor and the borrower, the interest rate will be (1) as follows.

 

    	 

    	 

    

 

 

 

		(1)	Fixed interest rate is 12.5%
                                                                 per annum. If the national benchmark interest rate is adjusted
                                                                 after the grant date as described in item 4 and before the actual
                                                                 grant date, the fixed interest rate will increase     /    % or reduce         /     %
                                                                 of the national benchmark interest rate, which is the national
                                                                 benchmark interest rate multiplied by       /    .
                                                                 The interest rate during the loan will not change with the national
                                                                 benchmark interest rate.

		(2)	Floating interest rate is confirmed per         /      (month/quarter/half year).
The annual interest rate is        /     % greater or        /     % less than the national
benchmark interest rate, which is the national benchmark interest rate multiplied by        /     . The initial
interest rate is the national benchmark interest rate on the actual grant date multiplied by         /      .
The interest rate for the next floating period is the national benchmark interest rate multiplied by        /     
once in         /     (month/quarter/half year).

If the national
benchmark interest rate is changed during the loan, the borrower will not be notified.

 

		(3)	Other

 

		2.	Method for repayment of interests

The method
for repayment of interests will be (1) as follows.

		(1)	The 20th day of the last month of each quarter is the interest settlement day, and the
21st day is the interest payment day. The last installment of interests will be repaid on the expiring date of the loan.

 

		(2)	All interests will be repaid on the expiring date of the loan.

 

		(3)	Other

 

		3.	Default interests and compound interests

		(1)	If the borrower does not use the loan according to the agreement, the trustor could authorize the
trustee to charge default interests over the diverted loan, and the default interest rate increases 100% of the interest rate.
If the borrower does not repay on time and agree with the trustor for an extension of repayment, the trustor could authorize the
trustee to charge default interests over the overdue payment, and the default interest rate increases 50% of the interest rate.
For overdue interest payment, the trustor could authorize the trustee to charge compound interests using the default interest rate.

 

		(2)	If the interest rate is a fixed interest rate, the default interest rate is a fixed interest rate;
if the interest rate is a floating interest rate, the default interest rate is a floating interest rate. The floating period for
the default interest rate is the same as that for the interest rate.

 

		(3)	The default and compound interests shall be repaid in the way as the interests for the loan.

 

Item 6, Repayment of the Principal

		1.	The method for repayment of the principal is (2) as follows.

		(1)	The principal will be fully repaid on the expiring date.

 

    	 

    	 

    

 

 

 

		(2)	The principal is repaid in separate installments; the amount and the date are as follows.

RMB 280 million
on August 6, 2016

RMB 100 million
on August 6, 2017

RMB 77 million
on August 6, 2018

		(3)	Other

 

		2.	The borrower shall repay the principal and interests on time on the repayment day and interest
settlement day according to the agreement. If the borrower does not repay the principal and interests on time, the trustee could
charge fees and interests from the accounts of the borrower at the trustee and other branches of the trustee according to regulations
of bank accounting and in an order regulated by the trustee.

 

		3.	If the repayment day is not a business day of the trustee, the repayment shall be made on the next
business day. The non-business day will be involved in the term of the loan. When the borrower repays the last installment of the
principal, the interests shall be repaid accordingly, not restricted by the interest settlement day in item 5.

 

		4.	With approval from the trustor and notification to the trustee, the borrower could repay the principal
partially or fully.

 

Item 7, Commission

		1.	The trustee charges 0.01% of the loan as the commission. The commission will be charged from the
trustor as a onetime payment before the actual grant of the loan.

 

		2.	If the trustor is liable for the commission, the trustee shall charge the commission directly from
the account of the trustor; if the borrower is liable for the commission, the trustor shall urge the borrower to pay the commission
on time. If the borrower does not pay the commission and the trustor will pay on the borrower’s behalf, the trustee could
charge directly from the account of the trustor.

 

Item 8, Guarantee

		1.	Guarantors accepted by the trustor provide guarantee for the loan. The followings are the guarantee
contracts.

 

		(1)	Mortgage Contract (No. 073001-2 (2013) Mortgage for Enterprises, Industrial Bank Co., Ltd, the
way of guarantee is mortgage, and the guarantor is Xi’an TCH Energy Technology Co., Ltd.

 

		(2)	Pledge Contract for Accounts Receivable (No. 073001-3 (2013) Pledge for Accounts Receivable for
Enterprises, Industrial Bank Co., Ltd, the way of guarantee is pledge, and the guarantor is Xi’an TCH Energy Technology Co.,
Ltd.

 

		(3)	Contract of Guarantee (No. 073001-4 (2013) Guarantee for Enterprises, Industrial Bank Co., Ltd,
the way of guarantee is joint liability, and the guarantor is Xi’an TCH Energy Technology Co., Ltd.

 

    	 

    	 

    

 

 

 

		(4)	Contract of Personal Guarantee (No. 073001-5 (2013) Personal Guarantee for Enterprises, Industrial
Bank Co., Ltd, the way of guarantee is joint liability, and the guarantor is Ku Guohua.

 

		(5)	Mortgage Contract (No. 073001-6 (2013) Mortgage for Enterprises, Industrial Bank Co., Ltd, the
way of guarantee is mortgage, and the guarantor is Xi’an Zhonghong New Energy Technology Co., Ltd.

 

		(6)	Pledge Contract for Accounts Receivable (No. 073001-7 (2013) Pledge for Accounts Receivable for
Enterprises, Industrial Bank Co., Ltd, the way of guarantee is pledge, and the guarantor is Xi’an Zhonghong New Energy Technology
Co., Ltd.

 

		(7)	Pledge Contract (No. 073001-8 (2013) Pledge for Enterprises, Industrial Bank Co., Ltd, the way
of guarantee is pledge, and the guarantor is Xi’an TCH Energy Technology Co., Ltd

 

		2.	Before the contracts take effect or guarantee procedures are completed, the trustee has the right
to hold the loan.

 

Item 9, Undertaking and Declaration of
the Borrower

The borrower is willing to make following
undertakings and declarations, and liable for the contents.

		1.	The borrower is a legal unit established and existed under laws of P.R.C. The borrower shall provide
certificates, licenses and document as per requests of the trustor or trustee.

 

		2.	The borrower shall fulfill rights and obligations under the agreement. The borrower is liable for
clearing the debt even if the financial situation is changed, or any agreements are signed with any units.

 

		3.	The borrower has the right to sign the agreement. The borrower has got approval, authorization,
consent or other proceedings from the management, government or other authorities to sign and execute the agreement. The approval,
authorization, consent and other proceedings keeps valid.

 

		4.	The borrower signing the agreement conforms to the bylaws of the borrower, and resolutions of the
stockholders and the board. The agreement cannot conflict with any bylaws and policies of the borrower and any resolutions of the
stockholders and the board.

 

		5.	The borrower really intends to sign and execute the agreement. The signing and execution of the
agreement will not violate any governing laws, regulations, rules and contracts. The agreement is legal, valid and enforceable.
If the agreement becomes invalid due to borrower’s rights defects during the execution of the agreement, the borrower shall
compensate all loss of the trustor and trustee.

 

    	 

    	 

    

 

 

 

		6.	All documents, financial statements, and instruments provided by the borrower to the trustor or
trustee shall be real, complete, accurate and valid, and shall meet financial requirements of the trustor or trustee.

 

		7.	The borrower agrees that the loan is restricted by regulations and practice of the trustee. The
trustee has the right to interpret its regulations and practice.

 

		8.	If the borrower does not fulfill responsibilities under the agreement, the borrower hereby authorizes
the trustee to charge fees from any accounts of the borrower at the trustee.

 

		9.	At any stage during the agreement, the borrower shall provide documents for specific transactions
to the trustee for review. The borrower shall ensure document contents are true. The trustee is neither involved in nor aware of
specific transactions, and will not take any responsibilities.

 

		10.	The borrower hereby confirms that besides written disclosures to the trustor and trustee, there
is no event occurred or forthcoming that might cause the trustor or trustee disapprove the loan, including but not limited to:

 

		(1)	Any debt and contingent debt of the borrower, including but not limited to undisclosed mortgage,
pledge, lien and other debts;

 

		(2)	Any activity breaches principles and laws and incurs claims conducted by the borrower or its management;

 

		(3)	Any breach of debt contract between the borrower and any creditor;

 

		(4)	Any litigation, arbitration or administrative proceeding against the borrower or its assets not
happened, not resolved or forthcoming, and any liquidation, closure or others raised spontaneously or by a third party.

 

		(5)	Others affecting the financial situation and payment for debts of the borrower.

 

		11.	The borrower promises to use the loan strictly according to the agreement other than diverting
the loan for other purposes. The borrower shall receive and coordinate supervision and inspection for the usage of the loan, operation,
financial activities, material storage, debts, bank deposits, and cash flow of the borrower or other necessary requests conducted
by the trustor or trustee.

 

		12.	The borrower shall provide adequate, valid, or other guarantee acceptable to the trustor.

 

		13.	The borrower cannot reduce the registered capital. Without written consent of the trustor, the
borrower cannot transfer partial or full debt under this agreement to a third party. Before the debt under the agreement is cleared,
the borrower cannot clear debts between the borrower and other creditors without written consent of the trustor.

 

    	 

    	 

    

 

 

 

		14.	If any litigation, arbitrations or disputes arise between the trustee and the borrower or any third
party related to the borrower, or the trustee is involved in disputes between the borrower and any third party, the borrower shall
bear costs paid by the trustee for arbitrations, counsel fees and others.

 

		15.	All settlements under the agreement must be made at the balance account opened at the trustee.

 

		16.	If the guarantee under the agreement is house mortgage and the house will be removed, the borrower
shall notify the trustor and trustee immediately. If the house is removed and the compensation is made by property rights exchange,
the trustor or trustee has the right to request the debt to be cleared in advance, or choose another mortgage method and sign a
new mortgage contract accordingly. After the mortgaged house is removed and before the new mortgage is registered, new valid and
eligible guarantee shall be provided. If the compensation is made with cash, the borrower shall request the mortgagor to open a
margin account or deposit the money and continue providing guarantee for the debt.

 

Item 10, Other Rights and Obligations

		1.	The trustor shall transfer the capital immediately into the trust account. After the capital is
deposited, the trustee shall grant the loan according to the trust and loan agreement.

 

		2.	Source of the entrusted loan must be legal and it cannot be credit fund received from the trustee.

 

		3.	The trustor and borrower must provide real documents, statements and proofs as per requests of
the trustee.

 

		4.	The borrower shall repay the principal and interests in the currency borrowed, unless otherwise
agreed by the trustor and the borrower.

 

		5.	The trustor shall investigate the borrower, the guarantor and guarantee, including but not limited
to purpose, basic information, credit status, financial status and others of the borrower and guarantor.

 

		6.	The trustor shall review conditions for the loan. The loan meets all requirements once the principal
is granted.

 

		7.	The trustor is responsible for pushing forward collection of the loan, reviewing usage of the loan,
investigating operation of the borrower, its financial situations, debts and guarantee.

 

		8.	The trustor and trustee have rights to supervise the usage of the loan.

 

		9.	The trustor has the right to recover the principal and interest via legal proceedings or arbitrations
as per the law or the agreement, the trustee shall provide assistance.

 

		10.	The borrower hereby irrevocably authorizes the trustee to deduct money from the account of the
borrower to repay the principal and interests.

 

    	 

    	 

    

 

 

 

		11.	If the borrower didn’t perform its obligation to repay the principle and interests of the
loan, the truster should take risks of the loan, and cannot request the lender taking any responsibility for the damage with the
excuse that the lender didn’t supervise appropriately or overdue issue. The dispute between the turster and the borrower
has nothing to do with the lender.

 

		12.	Unless there is other specific arrangement, the truster and the borrower cannot request the lender
take other obligations or risks.

 

		13.	When the turster authorizes the lender handle the lawsuit or arbitration, the truster should prepay
the expenses including but not limited to litigation fee, legal fee, travel fee, execution fee, maintenamce cost and other reasonable
expenses.

 

14. The truster may transfer the loan to
the other third party with advance written notice to the lender.

 

Item 11 recover the loan in advance

		1.	During the loan, if the borrower or guarantor is under any of following situations, the trustor
has the right to unilaterally stop lending the unreleased loan and recover all or partial principle and interests loan in advance;
For installment loans, if the trustor or lender require recovering the loan in advance, the other undue loan will be seen as mature
in advance.

		(1)	Providing false material or hiding material operation financial facts; the certification, documents,
statement, presentation and commitment stated in item 9 of the agreement were found out to be untrue, incorrect, incomplete or
misleading;

		(2)	Change the usage purpose of the loan without authorization of the truster, divert the loan or engage
in other illegal deals;

		(3)	Refuse being supervised or inspected operation or financial activities related to the fund usage
by the turster or lender;

		(4)	Any acquisition or merger or reorganization that may affect the securities of the loan;

		(5)	Intentionally escape the liability through related party transaction;

		(6)	Credit status is deteriorated and cannot fulfill its repayment obligation;

		(7)	The borrower didn’t repay the principle and interest on schedule under the agreement;

		(8)	The borrower stops repaying its liabilities or cannot repay the due loan;

		(9)	The borrower stops its business or goes bankrupt or dissolution, or its license is revoked or suspended,
or involving into material economics dispute; financial status is deteriorated;

		(10)	The borrower didn’t perform its obligation under the agreement or the guarantor didn’t
perform its obligation under the guarantee agreement;

		(11)	The value of collateral is decreased apparently or the right of pledge must be realized before
the maturity of the loan;

		(12)	Other issues that may endanger, damage the interests of the turster or the lender;

 

		2.	When recover the loan in advance, the turster has the right to take actions according to Item 12.1
and 12.5 of the agreement.

 

    	 

    	 

    

 

 

 

Item 12 Liability for breach of the agreement

		1.	If the borrower breaches the agreement or causes the lender’s failure to perform its obligation,
the borrower should take below responsibilities.

		(1)	If the loan has not been released, the truster has the right to terminate the agreement and stop
releasing the loan;

		(2)	If the loan has not been mature, the turster has the right to terminate the agreement and withdraw
the principle and interests of the loan in advance;

		(3)	If the loan was overdue, the truster has the right to take back default interest as the penalty
for the overdue loan.

		(4)	If the borrower diverted the loan, the truster has the right to charge default interest to the
diverted loan.

		(5)	The truster has the right to make creditor claims and the borrower assumes related expenses.

		(6)	The truster has the right to request other economic loss from the borrower.

 

		2.	If the turster breaches the agreement or causes the borrower failing to perform its obligation,
the truster should take below responsibilities.

		(1)	If the loan was not released on schedule, the truster should release the fund as soon as possible;

		(2)	Make reimbursement for borrower’s economics loss.

 

		3.	If the lender breaches the agreement, the lender should make reimbursement for the turster’s
or the borrower’s direct economic loss.

 

		4.	If the truster or borrower has not pay commission charge on schedule, the penalty will be charged,
which is            % of the unpaid commission charge.

As for the
penalty defaulted by the truster, the turstee has the right to deduct the delayed penalty from the account of the turster;

As for the
penalty defaulted by the borrower, the truster takes charge of urging the payment and the trustee has the right to deduct the penalty
from the account of the truster.

 

		5.	When any of below issues occurs, the truster has the right to take actions according to item 1
of the agreement:

		(1)	The guarantor didn’t perform its obligation or credit deteriorated or unable to fulfill its
guarantee obligations;

		(2)	The mortgagor didn’t perform its obligation under mortgage contract or deliberately damage
the mortgaged property, or the value of the collateral has or will be decreased;

		(3)	The pledgor didn’t perform its obligation under pledge agreement or the value of the pledged
property has or will be decreased, the right of pledge must be realized before the repayment of the loan;

 

Item 13 Consecutiveness of obligation

The obligation of the borrower is consecutive
and has same legal effect to the borrower’s heirs, successors, assignors, as well as to the principal part after merger,
re-organize, or name change.

 

    	 

    	 

    

 

 

 

Item 14 Counteracting Right

If the borrower or guarantor didn’t
perform due obligation or breach the agreement to cause the loan expiring in advance, the lender has the right to deduct fund in
any account opened on the lender’s system. If the currency of the deducting account is different from the currency of the
loan, the currency exchange is based on the buying foreign exchange quotation announced by the lender when the fund is deducted.

 

Item 15 Extension of the Loan

		1.	When the loan matures, the borrower may apply for extension to the lender.

 

		2.	The borrower should present an application for extension of the loan in written with consent of
truster and guarantor 30 business days prior to the maturity date.

 

		3.	If the truster agrees to extend the loan, the lender, borrower, truster, and guarantor should sign
a loan extension agreement. If the truster does not agree to extend the loan, the borrower should perform its repayment obligation
pursuing to the agreement.

 

Item 16 Applicable Law, Litigation and
Dispute Resolution

		1.	The Law of the People’s Republic of China is applicable to the establishment, effectiveness,
interpretation, performance of the agreement and resolution of dispute;

 

		2.	Any dispute or disagreement related to the agreement should be resolved through negotiation by
below means:

		(1)	Seek lawsuit to the people’s court where the lender is located;

		(2)	Arbitration agency makes final ruling which is bonding to all parties;

		(3)	Other access: initiate a lawsuit to People’s Court where the truster is located.

 

		3.	The provisions of the agreement not involved in the agreement are still in effect. The borrower
must perform its obligation under the agreement without excuses.

 

Item 17 Correspondence and notice

		1.	Any documents, correspondence and notice should be in written and delivered to the addresses or
via facsimile or other contact information stated in cover sheet of the agreement;

 

		2.	Any party that changes its contact information should make notice to the other parties promptly
without delay. Any losses resulted from the late notice should be assumed by the party that fails to make prompt notice for contact
information change.

 

		3.	As long as any document, correspondence and notice is sent out to the above mentioned addresses,
the date of service will be seen as below:

		(1)	For mail (including express mail, ordinary mail, registered mail), the fifth business day after
delivery date will be seen as the date of service;

		(2)	For facsimile or other electrical correspondence, the delivery date is the date of service;

 

    	 

    	 

    

 

 

 

		(3)	For personal service, the date when the recipient signs for the delivery is the date of service.

If the notice is made via the
website, e-bank, phone bank or network of the truster, the announcement date is the date of service. The tuster is not responsible
for the error, omission, or delay of the delivery.

 

		4.	All parties agree that seal of the institute, office seal, special financial seal, special seal
for contractual uses, transceiver seal, and special seal for credit business of the lender are all regarded valid stamp for documents
delivery. The staff of all parties all have right to be the recipient for the correspondence.

 

Item 18 Effectiveness and Miscellaneous

		1.	The agreement became effective since it was signed and sealed.

 

		2.	Any tolerance, moratorium or extension to the interests or rights under the agreement which truster
or lender provides to the borrower or guarantor shall not damage, affect or limit truster or lender’s interests and rights
under the agreement or appropriate regulations, which will not regard as waiver to their rights and interests.

 

		3.	The lender has the right to authorize other branches of Industrial Bank to perform the rights and
obligations of the agreement, or incorporate the loan into other branches of Industrial Bank to manage the fund, which do not require
the borrower or truster’s consent.

 

		4.	Even some term or condition of the agreement become illegal or invalid or non-executable any time,
other parts of the agreement still legal, valid and executable.

 

		5.	The subtitles are just for reference rather than used as interpretation or any other purpose.

 

		6.	The exhibits are integral part of the agreement and have same legal effect with the agreement.

 

		7.	The agreement is in sextuplicate, each of the truster, lender and borrower holds two copies with
same legal effect.

 

Item 19 Notarization and Voluntary to Accept
Enforcement

		1.	If any party request notarization, the agreement should be notarized at public notary organ.

 

		2.	The notarized agreement has enforcement potency. When the lender has not fulfilled its obligation,
the truster or the borrower has the right to apply directly to People’s Court with appropriate jurisdiction for enforcement.

 

Item 20 Supplementary Clause

		1.	The conditions sated in Item 11.1.12 of this agreement which may endanger, damage or threaten the
interest of the truster or lender is including but not limited to:

		(1)	Construction of any one of the three CDQ projects (two with Jiangsu Tianyu and one with Boxing)
has not been completed and operations have not begun within 18 months from the date of the first release of the fund;

 

    	 

    	 

    

 

 

 

		(2)	The Project Company has not received the electricity fees from any one of the three CDQ projects
for three consecutive months after it starts operations;

		(3)	The Project Company has not received at least 75% of the electricity fees from any one of the three
CDQ projects for six consecutive months after it starts operations;

		(4)	The parties breaching the agreement sign Fund Supervision Agreement with Serial No.: 073001-9 and
073001-10.

		(5)	The Project Company terminates any one of the projects with Tianyu or Boxing or there are breaches
of agreements by Tianyu or Boxing that cause or could cause major damage to the Fund;

		(6)	Xi'an TCH's operations deteriorate and it is unable fulfill its guarantee obligations;

		(7)	Any breach of warranties and statements by the Project Company or Xi'an TCH in the guarantee agreements
or loan agreement.

 

		2.	Warranty by The Lender

		(1)	To ensure the it has sufficient funds to make principal repayment when they due, the lender guarantees
maintaining a minimal funding level in its designated account with the bank as below request:

Account name:
Xi’an Zhonghong New Energy Technology Co., Ltd.

Account number:
456850100100170477

Bank Name: Xi’an
Economics Development Branch of Industrial Bank

 

		·	At the end of the 33rd calendar month from the first release of the loan, the deposit balance shall be no less than RMB 140
million (approximately $23.33 million);

 

		·	At the end of the 34th calendar month from the first release of the loan, the balance shall be no less than RMB 196 million
(approximately $32.66 million);

 

		·	at the end of the 35th calendar month from the first release of the loan, the balance is no less than RMB 280 million (approximately
$46.6 million);

 

		·	At the end of the 45th calendar month from the first release of the loan, the deposit balance shall be no less than RMB 50
million (approximately $8.33 million);

 

		·	At the end of the 46th calendar month from the first release of the loan, the balance shall be no less than RMB 70 million
(approximately $11.66 million);

 

		·	At the end of the 47th calendar month from the first release of the loan, the balance shall be no less than RMB 100 million
(approximately $16.66 million).

 

		(2)	The Project Company shall also maintain certain capital level in its account with the Bank to make
sure it has sufficient funds to make interest payments when they are due:

 

		·	During the first three years from the first release of the loan, the balance in its account shall be no less than RMB 7.14
million (approximately $1.19 million) on the 20th day of the 2nd month of each quarter and no less than RMB
14.28 million (approximately $2.38 million) on the 14th day of the last month of each quarter ;

 

    	 

    	 

    

 

 

 

		·	During the fourth year from the first release of the loan, the balance in its account shall be no less than RMB 1.92 million
(approximately $ 320 thousand) on the 20th day of the 2nd month of each quarter and no less than RMB 3.85
million (approximately $641,633) on the 14th day of the last month of each quarter;

 

		·	During the fifth year from the first release of the loan, the balance in its account shall be no less than RMB 96,300 (approximately
$ 16,050) on the 20th day of the 2nd month of each quarter and no less than RMB 192,500 (approximately $32,083)
on the 14th day of the last month of each quarter.

 

If (1) and (2) coincide, the lender
shall maintain the balance its account the accumulated amount.

 

Signature Page:

 

Beijing Hongyuan Recycling Energy
Investment Center (Limited Partnership)

 

Xi’an Branch of Industrial
Bank Inc., Ltd.

 

Xi’an Zhonghong New Energy
Technology Co., Ltd.

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