21. SUBSEQUENT EVENTS

On February 17, 2014, Xi’an TCH entered into two Trust Loan Agreements with Zhongrong International Trust Co., Ltd. (the “ZRIT”), a trust company incorporated in Helongjiang Province, China.

The first Trust Loan Agreement (the “Zhongtai Loan Agreement”) is for Xi’an TCH to borrow RMB 150 million ($24.5 million) for the Coke Dry Quenching (“CDQ”) system and the CDQ Waste Heat Power Generation Project with Xuzhou Zhongtai Energy Technology Co., Ltd. (the “Zhongtai Project”). ZRIT will set up a Zhongrong-Green Recycling Energy Collective Capital Trust Plan No. 1 (the “Trust Plan No. 1”) to raise money and loan the proceeds to Xi’an TCH for the Zhongtai Project. (the “Zhongtai Loan”).

The Zhongtai Loan has a term of forty-eight (48) months and bears an annual interest rate of 12% for the first twenty-four (24) months. ZRIT has the right to adjust the interest rate according to the market conditions after twenty-four (24) months and Xi’an TCH has the right to prepay the Zhongtai Loan before maturity if Xi’an TCH does not agree to such adjustment of interest rate. ZRIT has the right to request repayment of all principal and interest of the Zhongtai Loan on the twenty-four (24) month anniversary date of the establishment of Trust Plan No. 1.

The Zhongtai Loan is secured by the pledge of CDQ equipment and power generation system of the Zhongtai Project, by personal guarantee of Mr. Ku Guohua, the Chairman and CEO of the Company, and by a corporate guarantee of Xuzhou Zhongtai Energy Technology Co., Ltd. and its affiliated companies.

The second Trust Loan Agreement (the “Rongfeng Loan Agreement”) is for Xi’an TCH to borrow RMB 135 million ($22.1 million) for the CDQ system and the CDQ WHPG Project with Tangshan Rongfeng Iron & Steel Co., Ltd. (the “Rongfeng Project”). ZRIT will set up a Zhongrong-Green Recycling Energy Collective Capital Trust Plan No. 2 (the “Trust Plan No. 2”) to raise money and loan the proceeds to Xi’an TCH for the Rongfeng Project.

The Rongfeng Loan has a term of forty-eight (48) months and bears an annual interest rate of 12% for the first twenty-four (24) months. ZRIT has the right to adjust the interest rate according to the market conditions after twenty-four (24) months and Xi’an TCH has the right to prepay the Rongfeng Loan if Xi’an TCH does not agree to such adjustment of the interest rate. ZRIT has the right to request repayment of all principal and interest of the Rongfeng Loan on the twenty-four (24) month anniversary date of the establishment of Trust Plan No. 2.

The Rongfeng Loan is secured by the pledge of CDQ equipment and power generation system of the Rongfeng Project, by a personal guarantee of Mr. Ku Guohua, the Chairman and CEO of the Company, and by a corporate guarantee of Tangshan Rongfeng Iron & Steel Co., Ltd. and its parent company.

On December 6, 2013, Xi’an entered into a CDQ and Waste Heat Power Generation Energy Management Cooperative Agreement (the “Zhongtai Agreement”) with Xuzhou Zhongtai Energy Technology Co., Ltd. (“Zhongtai”), a limited liability company incorporated in Jiangsu Province, China (See Note 1).

On December 12, 2013, Xi’an TCH entered into a CDQ Power Generation Energy Management Cooperative Agreement with Tangshan Rongfeng Iron & Steel Co., Ltd. (“Rongfeng”), a limited liability company incorporated in Hebei Province, China (the “Rongfeng Agreement”) (See Note 1).