Conditions for Termination

In line with Chinese law, a foreign-funded enterprise shall be terminated where any of the following conditions occurs:

1. That the term of operation expires;

2. That the investors have decided to dissolve the enterprise because of poor operation and serious losses;

3. That the enterprise can not continue to operate because one of the partners has failed to fulfil its obligations defined by the contract and charter of incorporation;

4. That the enterprise can not continue to operate because of serious losses resulting from factors of force majeure such as natural disasters and war;

5. That the enterprise has become insolvent;

6. That the enterprise has been dissolved for violation of law or harming public interests;

7. That there have occurred other reasons to dissolve the enterprise as defined by the contract and charter of incorporation.