Plan of Repayment Creditor:Zibo Jiazhou Chemical Industry Co., Ltd. (Jiazhou Chemical)Address: 1 Dianchan Rd., Zhou VillageZip code:255300Debtor:Zibo Jiazhou Heat & Electricity Co., Ltd. (Jiazhou Heat & Electricity)Address:1 Dianchan Rd., Zhoubei Development Zone, Zhou VillageZip code:255300

Whereas, Zhoujia Heat & Electricity’s main business is to produce and supply vapor and electricity. It meets the government’s industry policy of “combining heat and electricity, generating electricity according to heat and conserving resources”. Therefore, Zhoujia Heat & Electricity belongs to the category of the companies that comprehensively utilize resources. Zhoujia Chemical produces a great amount of vapor during its manufacture process and sells such vapor to Zhoujia Heat & Electricity for heating and manufacturing purposes. To ensure the repayment of the purchase price, after friendly negotiation, both parties agree to the following with respect to the repayment.

Jiazhou Heat and Electricity is the only heat and electricity company in the Zhou Village Area. It is located in Zhou Village Development Zone and is responsible for the local residents’ heat in winter and the local company’s manufacturing use of vapor. Its supply net reaches every corner and every industry in the Zhou Village. It is a regional monopoly. In 2010, Jiazhou Heat & Electricity realized revenue of RMB 234,990,000 and a net profit of RMB 34,190,000. The economic entities that centers Jiazhou Heat & Electricity’s supply lines are gradually growing and the company’s revenue increases every year. Therefore, it is secure to use the net profit of Jiazhou Heat & Electricity to repay the purchase price of the vapor.