On 11 March 2024, Capital Environment Holdings Limited entered into the Cooperation Framework Agreement with Beijing Capital Eco-Environment Protection Group Co., Ltd. (Capital Eco Group), pursuant to which the subsidiaries of Capital Eco Group, which fall under the Cooperative Area, shall provide entrusted management services to the Project Companies of Capital Environmental Sanitation, an indirect wholly-owned subsidiary of the Company, in the Cooperative Area. Subject to the applicable law and regulations, any of the subsidiaries of Capital Eco Group, which fall under the Cooperative Area, shall provide entrusted management services to the Project Companies, including but not limited to, the following: recommending suitable candidates to serve as senior management personnel/responsible persons (e.g. general manager, chief financial officer, and finance personnel) of the Project Companies; subject to the decision-making powers delegated to i) the meetings of shareholders and board of directors; and ii) the executive directors of the Project Companies of Capital Environmental Sanitation and the compliance with the articles of associations of the Project Companies, such senior management personnel/responsible persons shall be entrusted to exercise the statutory management rights and provide management services on the day-to-day business operations of the Project Companies (including but not limited to production arrangements, sales arrangements, development planning arrangements, asset management, financial management, personnel management and budget arrangements). In accordance with the principles of fairness and reasonableness and pursuant to the Cooperation Framework Agreement, the parties shall enter into specific entrusted management agreements on normal commercial terms in respect of the provision of the entrusted management services.

The terms and conditions of the specific entrusted management agreements, including but not limited to the pricing policy, shall in all material aspects in compliance with the principles, directions, terms and conditions of the Cooperation Framework Agreement. From 11 March 2024 to 31 December 2026. It is expected that the annual entrusted management service fee payable under the Cooperation Framework Agreement would not exceed the Caps of RMB equivalent of HKD 10,000,000, which shall be satisfied by the general working capital.

The laws of the PRC.