Common use of Entrusted Operation Clause in Contracts

Entrusted Operation. 1.1 Party A agrees to irrevocably entrust the right of operation management of Party A and the responsibilities and authorities of Party A’s shareholders and the executive director to Party B in accordance with the terms and conditions of this Agreement. Party B agrees to exercise the aforesaid rights and responsibilities in accordance with the terms and conditions of this Agreement. 1.2 The term of the entrusted operation is from the effective date of this Agreement to 31st December, 2009. 1.3 The purpose of the entrusted operation is: Party B shall be in charge of the normal business operations of Party A and perform the responsibilities and rights of Party A’s investor and the executive director, and Party A shall pay all of its profit (if any) to Party B. During the term of the entrusted operation, Party B, as the entrusted manager, shall provide full management to Party A’s operations. 1.4 The contents of the entrusted operation shall include but not be limited to the following: 1) Party B shall be in charge of all aspects of Party A’s operations; nominate and replace the members of Party A’s executive director, engage Party A’s management staff and decide their compensation. 2) Party B shall manage and control all the funds of Party A. The accounts of Party A shall be managed solely by Party B. The seals and signatures for such account shall be the seals and signatures of the personnel appointed and confirmed by Party B. All the cash of Party A shall be kept in this entrusted account shall be handled through this account, including but not limited to receipt of all Party A’s business income, current working capital, recovered account receivables, and the payment of all account payables and operation expenses, employee salaries and asset purchases, etc. 3) All the matters of Party A, including but not limited to internal financial management, day-to-day operation, external contact execution and performance, tax filing and payment, change of rights and personnel, shall be controlled and managed by Party B in all aspects. 4) Party B shall enjoy all the other responsibilities and rights enjoyed by Party A’s investor in accordance with the applicable law and the articles of association of Party A, including but not limited to the following: a. Deciding Party A’s operation principles and investment plan; b. Nominating the executive director or the supervisor; c. Discussing and approving the report of the executive director or the supervisor; d. Discussing and approving the annual financial budget and settlement plan; e. Discussing and approving the profit distribution plan and the loss compensation plan; f. Resolving on the increase or decrease of the registered capital; g. Resolving on the issuance of the corporate bond; h. Resolving on the matters including merger, division, change of corporate form, dissolution and liquidation of the company; i. Amending the articles of association; j. Other responsibilities and rights provided by Party A’s articles of association. 5) Party B enjoys all the other responsibilities and rights enjoyed by Party A’s executive director in accordance with the applicable law and the articles of association of Party A, including but not limited to the following: a. Executing the resolution of the investor]; b. Deciding the company’s operation plan and investment scheme; c. Composing the annual financial budget and settlement plan; d. Formulating the profit distribution plan and the loss compensation plan; e. Formulating the plans regarding to the increase or decrease of the registered capital and the issuance of the corporate bond; f. Formulating the plans regarding to the matters including merger, division, change of corporate form and dissolution of the company; g. Deciding on the establishment of the internal management structure of the company; h. Formulating the basic rules and regulations of the company; i. Representing the company to sign relative documents; j. Other responsibilities and rights provided by Party A’s articles of association. 6) The said entrustment is irrevocable and shall not be withdrawn, unless the Agreement is terminated pursuant to written agreement of both parties.

Entrusted Operation. 1.1 Party A agrees to irrevocably entrust the right of operation management of Party A and the responsibilities and authorities of Party A’s shareholders shareholders’ meeting and the executive director board of directors to Party B in accordance with the terms and conditions of this Agreement. Party B agrees to exercise the aforesaid rights and responsibilities in accordance with the terms and conditions of this Agreement.The aforesaid rights shall be exclusively entrusted to Party B, and Party B shall not transfer the aforesaid rights to any other party. 1.2 The term of the entrusted operation is from the effective date of this Agreement to 31st December, 2009the date on which Party B possesses more than 51% of Party A’s shares. 1.3 The purpose of the entrusted operation is: Before Party B possesses the controlling stock (more than 51%) of Party A, Party B shall be in charge of the normal business operations of Party A and perform the responsibilities and rights of Party A’s investor shareholders’ meeting and the executive directorboard of directors, and Party A shall pay all of its profit (if any) to Party B. B and Party B shall be responsible to Party A’s loss (if any). During the term of the entrusted operation, Party B, as the entrusted manager, shall provide full management to Party A’s operations. 1.4 The contents of the entrusted operation shall include but not be limited to the following: 1) Party B shall be in charge of all aspects of Party A’s operations; nominate and replace the members of Party A’s executive directorboard of directors, engage Party A’s management staff and decide their compensation. 2) Party B shall manage and control all the funds of Party A. The accounts account of Party A shall be managed and decided solely by Party B. The seals and signatures for such account shall be the seals and signatures of the personnel appointed and confirmed by Party B. All the cash of Party A shall be kept in this entrusted account shall be handled through this account, including but not limited to receipt of all Party A’s business income, current working capital, recovered account receivables, etc., and the payment of all account payables and operation expenses, employee salaries and asset purchases, etc. 3) All the matters of Party A, including but not limited to internal financial management, day-to-day operation, external contact execution and performance, tax filing and payment, change of rights and personnel, etc., shall be controlled and managed by Party B in all aspects. 4) Party B shall enjoy all the other responsibilities and rights enjoyed by Party A’s investor shareholders’ meeting in accordance with the applicable law Company Law and the articles of association of Party A, including but not limited to the following: a. Deciding Party A’s operation principles and investment plan; b. Nominating Discussing and approving the executive director or report of the supervisorboard of directors; c. Discussing and approving the report of the executive director or the supervisor; d. Discussing and approving the annual financial budget and settlement plan; e. Discussing and approving the profit distribution plan and the loss compensation plan; f. Resolving on the increase or decrease of the registered capital; g. Resolving on the issuance of the corporate bond; h. Resolving on the matters including merger, division, change of corporate form, dissolution and liquidation of the company; i. Amending the articles of association; j. Other responsibilities and rights provided by Party A’s articles of association. 5) Party B enjoys all the other responsibilities and rights enjoyed by Party A’s executive director board of directors in accordance with the applicable law Company Law and the articles of association of Party A, including but not limited to the following: a. Convening the shareholders’ meeting and report to the shareholders’ meeting; b. Executing the resolution of the investor]shareholders’ meeting; b. c. Deciding the company’s operation plan and investment scheme; c. d. Composing the annual financial budget and settlement plan; d. e. Formulating the profit distribution plan and the loss compensation plan; e. f. Formulating the plans regarding to the increase or decrease of the registered capital and the issuance of the corporate bond; f. g. Formulating the plans regarding to the matters including merger, division, change of corporate form and dissolution of the company; g. h. Deciding on the establishment of the internal management structure of the company; h. i. Formulating the basic rules and regulations of the company; i. Representing the company to sign relative documents; j. Other responsibilities and rights provided by Party A’s articles of association. 6) The said entrustment is irrevocable and shall not be withdrawn, unless the Agreement is terminated pursuant to written agreement of both partiesterminated.

Entrusted Operation. 1.1 Party A agrees to irrevocably entrust the right of operation management of Party A and the responsibilities and authorities of Party A’s shareholders investor and the executive director to Party B in accordance with the terms and conditions of this Agreement. Party B agrees to exercise the aforesaid rights and responsibilities in accordance with the terms and conditions of this Agreement. 1.2 The term of the entrusted operation is from the effective date of this Agreement to 31st December, 2009the earliest date of the following: 1) The termination date of Party A’s business; or 2) The termination date of the entrusted operation as agreed upon by the parties under this Agreement; or 3) The date on which Party B possesses more than 51% of Party A’s shares. 1.3 The purpose of the entrusted operation is: Party B shall be in charge of the normal business operations of Party A and perform the responsibilities and rights of Party A’s investor and the executive director, and Party A shall pay all of its profit (if any) to Party B. B and Party B shall be responsible to Party A’s loss (if any). During the term of the entrusted operation, Party B, as the entrusted manager, shall provide full management to Party A’s operations. 1.4 The contents of the entrusted operation shall include but not be limited to the following: 1) Party B shall be in charge of all aspects of Party A’s operations; nominate and replace the members of Party A’s executive director, engage Party A’s management staff and decide their compensation. 2) Party B shall manage and control all the funds of Party A. The accounts account of Party A shall be managed and decided solely by Party B. The seals and signatures for such account shall be the seals and signatures of the personnel appointed and confirmed by Party B. All the cash of Party A shall be kept in this entrusted account shall be handled through this account, including but not limited to receipt of all Party A’s business income, current working capital, recovered account receivables, etc., and the payment of all account payables and operation expenses, employee salaries and asset purchases, etc. 3) All the matters of Party A, including but not limited to internal financial management, day-to-day operation, external contact execution and performance, tax filing and payment, change of rights and personnel, etc., shall be controlled and managed by Party B in all aspects. 4) Party B shall enjoy all the other responsibilities and rights enjoyed by Party A’s investor in accordance with the applicable law Company Law and the articles of association of Party A, including but not limited to the following: a. Deciding Party A’s operation principles and investment plan; b. Nominating the executive director or the supervisor; c. Discussing and approving the report of the executive director or the supervisor; d. Discussing and approving the annual financial budget and settlement plan; e. Discussing and approving the profit distribution plan and the loss compensation plan; f. Resolving on the increase or decrease of the registered capital; g. Resolving on the issuance of the corporate bond; h. Resolving on the matters including merger, division, change of corporate form, dissolution and liquidation of the company; i. Amending the articles of association; j. Other responsibilities and rights provided by Party A’s articles of association. 5) Party B enjoys all the other responsibilities and rights enjoyed by Party A’s executive director in accordance with the applicable law Company Law and the articles of association of Party A, including but not limited to the following: a. Executing the resolution of the investor]; b. Deciding the company’s operation plan and investment scheme; c. Composing the annual financial budget and settlement plan; d. Formulating the profit distribution plan and the loss compensation plan; e. Formulating the plans regarding to the increase or decrease of the registered capital and the issuance of the corporate bond; f. Formulating the plans regarding to the matters including merger, division, change of corporate form and dissolution of the company; g. Deciding on the establishment of the internal management structure of the company; h. Formulating the basic rules and regulations of the company; i. Representing the company to sign relative documents; j. Other responsibilities and rights provided by Party A’s articles of association. 6) The said entrustment is irrevocable and shall not be withdrawn, unless the Agreement is terminated pursuant to written agreement of both partiesterminated.

Entrusted Operation. 1.1 Party A agrees to irrevocably entrust the right of operation management of Party A and the responsibilities and authorities of Party A’s shareholders investor and the executive director to Party B in accordance with the terms and conditions of this Agreement. Party B agrees to exercise the aforesaid rights and responsibilities in accordance with the terms and conditions of this Agreement. 1.2 The term of the entrusted operation is from the effective date of this Agreement to 31st December, 2009the earliest date of the following: 1) The termination date of Party A’s business; or 2) The termination date of the entrusted operation as agreed upon by the parties under this Agreement; or 3) The date on which Party B possesses more than 51% of Party A’s shares. 1.3 The purpose of the entrusted operation is: Party B shall be in charge of the normal business operations of Party A and perform the responsibilities and rights of Party A’s investor and the executive director, and Party A shall pay all of its profit (if any) to Party B. B and Party B shall be responsible to Party A’s loss (if any). During the term of the entrusted operation, Party B, as the entrusted manager, shall provide full management to Party A’s operations. 1.4 The contents of the entrusted operation shall include but not be limited to the following: 1) Party B shall be in charge of all aspects of Party A’s operations; nominate and replace the members of Party A’s executive director, engage Party A’s management staff and decide their compensation. 2) Party B shall manage and control all the funds of Party A. The accounts account of Party A shall be managed and decided solely by Party B. The seals and signatures for such account shall be the seals and signatures of the personnel appointed and confirmed by Party B. All the cash of Party A shall be kept in this entrusted account shall be handled through this account, including but not limited to receipt of all Party A’s business income, current working capital, recovered account receivables, etc., and the payment of all account payables and operation expenses, employee salaries and asset purchases, etc. 3) All the matters of Party A, including but not limited to internal financial management, day-to-day operation, external contact execution and performance, tax filing and payment, change of rights and personnel, etc., shall be controlled and managed by Party B in all aspects. 4) Party B shall enjoy all the other responsibilities and rights enjoyed by Party A’s investor in accordance with the applicable law Company Law and the articles of association of Party A, including but not limited to the following: a. Deciding Party A’s operation principles and investment plan; b. Nominating the executive director or the supervisor; c. Discussing and approving the report of the executive director or the supervisor; d. Discussing and approving the annual financial budget and settlement plan; e. Discussing and approving the profit distribution plan and the loss compensation plan; f. Resolving on the increase or decrease of the registered capital; g. Resolving on the issuance of the corporate bond; h. Resolving on the matters including merger, division, change of corporate form, dissolution and liquidation of the company; i. Amending the articles of association; j. Other responsibilities and rights provided by Party A’s articles of association. 5) Party B enjoys all the other responsibilities and rights enjoyed by Party A’s executive director in accordance with the applicable law Company Law and the articles of association of Party A, including but not limited to the following: a. Executing the resolution of the investor]; b. Deciding the company’s operation plan and investment scheme; c. Composing the annual financial budget and settlement plan; d. Formulating the profit distribution plan and the loss compensation plan; e. Formulating the plans regarding to the increase or decrease of the registered capital and the issuance of the corporate bond; f. Formulating the plans regarding to the matters including merger, division, change of corporate form and dissolution of the company; g. Deciding on the establishment of the internal management structure of the company; h. Formulating the basic rules and regulations of the company; i. Representing the company to sign relative documents; j. Other responsibilities and rights provided by Party A’s articles of association. 6) The said entrustment is irrevocable and shall not be withdrawn, unless the Agreement is terminated pursuant to written agreement of both partiesterminated.

Entrusted Operation. 1.1 Party A agrees to irrevocably entrust the right of operation management of Party A and the responsibilities and authorities of Party A’s shareholders investor and the executive director to Party B in accordance with the terms and conditions of this Agreement. Party B agrees to exercise the aforesaid rights and responsibilities in accordance with the terms and conditions of this Agreement. 1.2 The term of the entrusted operation is from the effective date of this Agreement to 31st December, 2009the earliest date of the following: 1) The termination date of Party A’s business; or 2) The termination date of the entrusted operation as agreed upon by the parties under this Agreement; or 3) The date on which Party B possesses more than 51% of Party A’s shares. 1.3 The purpose of the entrusted operation is: Party B shall be in charge of the normal business operations of Party A and perform the responsibilities and rights of Party A’s investor and the executive director, and Party A shall pay all of its profit (if any) to Party B. B and Party B shall be responsible to Party A’s loss (if any). During the term of the entrusted operation, Party B, as the entrusted manager, shall provide full management to Party A’s operations. 1.4 The contents of the entrusted operation shall include but not be limited to the following: 1) Party B shall be in charge of all aspects of Party A’s operations; nominate and replace the members of Party A’s executive director, engage Party A’s management staff and decide their compensation. 2) Party B shall manage and control all the funds of Party A. The accounts account of Party A shall be managed and decided solely by Party B. The seals and signatures for such account shall be the seals and signatures of the personnel appointed and confirmed by Party B. All the cash of Party A shall be kept in this entrusted account shall be handled through this account, including but not limited to receipt of all Party A’s business income, current working capital, recovered account receivables, etc., and the payment of all account payables and operation expenses, employee salaries and asset purchases, etc. 3) All the matters of Party A, including but not limited to internal financial management, day-to-day operation, external contact execution and performance, tax filing and payment, change of rights and personnel, etc., shall be controlled and managed by Party B in all aspects. 4) Party B shall enjoy all the other responsibilities and rights enjoyed by Party A’s investor in accordance with the applicable law Company Law and the articles of association of Party A, including but not limited to the following: a. Deciding Party A’s operation principles and investment plan; b. Nominating the executive director or the supervisor; c. Discussing and approving the report of the executive director or the supervisor; d. Discussing and approving the annual financial budget and settlement plan; e. Discussing and approving the profit distribution plan and the loss compensation plan; f. Resolving on the increase or decrease of the registered capital; g. Resolving on the issuance of the corporate bond; h. Resolving on the matters including merger, division, change of corporate form, dissolution and liquidation of the company; i. Amending the articles of association; j. Other responsibilities and rights provided by Party A’s articles of association. 5) Party B enjoys all the other responsibilities and rights enjoyed by Party A’s executive director in accordance with the applicable law Company Law and the articles of association of Party A, including but not limited to the following: a. Executing the resolution of the investor]; b. Deciding the company’s operation plan and investment scheme; c. Composing the annual financial budget and settlement plan; d. Formulating the profit distribution plan and the loss compensation plan; e. Formulating the plans regarding to the increase or decrease of the registered capital and the issuance of the corporate bond; f. Formulating the plans regarding to the matters including merger, division, change of corporate form and dissolution of the company; g. Deciding on the establishment of the internal management structure of the company; h. Formulating the basic rules and regulations of the company; i. Representing the company to sign relative documents; j. Other responsibilities and rights provided by Party A’s articles of association. 6) The said entrustment is irrevocable and shall not be withdrawn, unless the Agreement is terminated pursuant terminated. 1.5 The Fee of Entrusted Operation: For the performance of the entrusted matters provided under this Agreement, Party A shall pay an entrustment fee to written agreement Party B, which shall be Party A’s total profit (if any) after deduction of both partiesnecessary expenses. Party A shall transfer the payment, which is obtained by selling its equipment, inventories, raw materials, components, accounts receivable and by renting its real estate, land use right, to Party B as the entrustment fee. If the net amount is zero or negative after the aforesaid calculation, Party A shall not pay any entrustment fee, and the loss of the given month shall be deducted in the following months’ entrustment fee. Party A and Party B shall calculate and settle each month’s entrustment fee payable by Party A within 10 days after the end of that month. 1.6 The Assumption of the Entrustment Risk: Party B shall assume all the operation risks in association with the management of Party A entrusted to it. Party B shall be responsible for any loss incurred to Party A’s operation. If Party A’s cash is not enough to pay its debt, Party B is liable to pay the debt; if the loss leads to a net asset balance of less than the registered capital, Party B shall be liable to make up for the deficiency.

Entrusted Operation. 1.1 Party A agrees to irrevocably entrust the right of operation management of Party A and the responsibilities and authorities of Party A’s shareholders 's shareholders' meeting and the executive director board of directors to Party B in accordance with the terms and conditions of this Agreement. Party B agrees to exercise the aforesaid rights and responsibilities in accordance with the terms and conditions of this Agreement. 1.2 The term of the entrusted operation is from the effective date of this Agreement to 31st December, 2009the earliest date of the following: 1) The termination date of Party A's business; or 2) The termination date of the entrusted operation as agreed upon by the parties under this Agreement; or 3) The date on which Party B possesses more than 51% of Party A's shares. 1.3 The purpose of the entrusted operation is: Before Party B possesses the controlling stock (more than 51%) of Party A, Party B shall be in charge of the normal business operations of Party A and perform the responsibilities and rights of Party A’s investor 's shareholders' meeting and the executive directorboard of directors, and Party A shall pay all of its profit (if any) to Party B. B and Party B shall be responsible to Party A's loss (if any). During the term of the entrusted operation, Party B, as the entrusted manager, shall provide full management to Party A’s 's operations. 1.4 The contents of the entrusted operation shall include but not be limited to the following: 1) Party B shall be in charge of all aspects of Party A’s 's operations; nominate and replace the members of Party A’s executive director's board of directors, engage Party A’s 's management staff and decide their compensation. 2) Party B shall manage and control all the funds of Party A. The accounts account of Party A shall be managed and decided solely by Party B. The seals and signatures for such account shall be the seals and signatures of the personnel appointed and confirmed by Party B. All the cash of Party A shall be kept in this entrusted account shall be handled through this account, including but not limited to receipt of all Party A’s 's business income, current working capital, recovered account receivables, etc., and the payment of all account payables and operation expenses, employee salaries and asset purchases, etc. 3) All the matters of Party A, including but not limited to internal financial management, day-to-day operation, external contact execution and performance, tax filing and payment, change of rights and personnel, etc., shall be controlled and managed by Party B in all aspects. 4) Party B shall enjoy all the other responsibilities and rights enjoyed by Party A’s investor 's shareholders' meeting in accordance with the applicable law Company Law and the articles of association of Party A, including but not limited to the following: a. Deciding Party A’s 's operation principles and investment plan; ; b. Nominating Discussing and approving the executive director or report of the supervisor; board of directors; c. Discussing and approving the report of the executive director or the supervisor; ; d. Discussing and approving the annual financial budget and settlement plan; ; e. Discussing and approving the profit distribution plan and the loss compensation plan; ; f. Resolving on the increase or decrease of the registered capital; ; g. Resolving on the issuance of the corporate bond; ; h. Resolving on the matters including merger, division, change of corporate form, dissolution and liquidation of the company; ; i. Amending the articles of association; ; j. Other responsibilities and rights provided by Party A’s 's articles of association. 5) Party B enjoys all the other responsibilities and rights enjoyed by Party A’s executive director 's board of directors in accordance with the applicable law Company Law and the articles of association of Party A, including but not limited to the following: a. Convening the shareholders' meeting and report to the shareholders' meeting; b. Executing the resolution of the investor]; b. shareholders' meeting; c. Deciding the company’s 's operation plan and investment scheme; c. ; d. Composing the annual financial budget and settlement plan; d. ; e. Formulating the profit distribution plan and the loss compensation plan; e. ; f. Formulating the plans regarding to the increase or decrease of the registered capital and the issuance of the corporate bond; f. ; g. Formulating the plans regarding to the matters including merger, division, change of corporate form and dissolution of the company; g. ; h. Deciding on the establishment of the internal management structure of the company; h. ; i. Formulating the basic rules and regulations of the company; i. Representing the company to sign relative documents; ; j. Other responsibilities and rights provided by Party A’s 's articles of association. 6) The said entrustment is irrevocable and shall not be withdrawn, unless the Agreement is terminated pursuant to written agreement of both partiesterminated.

Entrusted Operation. 1.1 Party A agrees to irrevocably entrust the right of operation management of Party A and the responsibilities and authorities of Party A’s shareholders investors and the executive director to Party B in accordance with the terms and conditions of this Agreement. Party B agrees to exercise the aforesaid rights and responsibilities in accordance with the terms and conditions of this Agreement. 1.2 The term of the entrusted operation is from the effective date of this Agreement to 31st December, 2009.the earliest date of the following: 1) The termination date of Party A’s business; or 2) The termination date when this agreement is terminated by the designated person from the board of directors of Party B; or 3) The date on which Party B possesses more than 51% of Party A’s shares,and this agreement is approved to be terminated by the designated person from the board of directors of Party B. 1.3 The purpose of the entrusted operation is: Party B shall be in charge of the normal business operations of Party A and perform the responsibilities and rights of Party A’s investor investors and the executive director, and Party A shall pay all of its profit (if any) to Party B. B and Party B shall be responsible to Party A’s loss (if any). During the term of the entrusted operation, Party B, as the entrusted manager, shall provide full management to Party A’s operations. 1.4 The contents of the entrusted operation shall include but not be limited to the following: 1) Party B shall be in charge of all aspects of Party A’s operations; nominate and replace the members of Party A’s executive director, engage Party A’s management staff and decide their compensation. 2) Party B shall manage and control all the funds of Party A. The accounts account of Party A shall be managed and decided solely by Party B. The seals and signatures for such account shall be the seals and signatures of the personnel appointed and confirmed by Party B. All the cash of Party A shall be kept in this entrusted account shall be handled through this account, including but not limited to receipt of all Party A’s business income, current working capital, recovered account receivables, etc., and the payment of all account payables and operation expenses, employee salaries and asset purchases, etc. 3) All the matters of Party A, including but not limited to internal financial management, day-to-day operation, external contact execution and performance, tax filing and payment, change of rights and personnel, etc., shall be controlled and managed by Party B in all aspects. 4) Party B shall enjoy all the other responsibilities and rights enjoyed by Party A’s investor investors in accordance with the applicable law Company Law and the articles of association of Party A, including but not limited to the following: a. Deciding Party A’s operation principles and investment plan; b. Nominating the executive director or the supervisor; c. Discussing and approving the report of the executive director or the supervisor; d. Discussing and approving the annual financial budget and settlement plan; e. Discussing and approving the profit distribution plan and the loss compensation plan; f. Resolving on the increase or decrease of the registered capital; g. Resolving on the issuance of the corporate bond; h. Resolving on the matters including merger, division, change of corporate form, dissolution and liquidation of the company; i. Amending the articles of association; j. Other responsibilities and rights provided by Party A’s articles of association. 5) Party B enjoys all the other responsibilities and rights enjoyed by Party A’s executive director in accordance with the applicable law Company Law and the articles of association of Party A, including but not limited to the following: a. Executing the resolution of the investor]investors; b. Deciding the company’s operation plan and investment scheme; c. Composing the annual financial budget and settlement plan; d. Formulating the profit distribution plan and the loss compensation plan; e. Formulating the plans regarding to the increase or decrease of the registered capital and the issuance of the corporate bond; f. Formulating the plans regarding to the matters including merger, division, change of corporate form and dissolution of the company; g. Deciding on the establishment of the internal management structure of the company; h. Formulating the basic rules and regulations of the company; i. Representing the company to sign relative documents; j. Other responsibilities and rights provided by Party A’s articles of association. 6) The said entrustment is irrevocable and shall not be withdrawn, unless the Agreement is terminated pursuant terminated. 1.5 The Fee of Entrusted Operation: For the performance of the entrusted matters provided under this Agreement, Party A shall pay an entrustment fee to written agreement Party B, which shall be Party A’s total profit (if any) after deduction of both partiesnecessary expenses. Party A shall transfer the payment, which is obtained by leasing its real estate, land use right, equipments and bamboo bases to Party B as the entrustment fee in accordance with the lease. If the net amount is zero or negative after the aforesaid calculation, Party A shall not pay any entrustment fee, and the loss of the given month shall be deducted in the following months’ entrustment fee. Party A and Party B shall calculate and settle each month’s entrustment fee payable by Party A within 10 days after the end of that month. 1.6 The Assumption of the Entrustment Risk: Party B shall assume all the operation risks in association with the management of Party A entrusted to it. Party B shall be responsible for any loss incurred to Party A’s operation. If Party A’s cash is not enough to pay its debt, Party B is liable to pay the debt; if the loss leads to a net asset balance of less than the registered capital, Party B shall be liable to make up for the deficiency.