This document provides an investors guide for Koprivnica Križevci County in Croatia, summarizing key information about geographical position, traffic connections, business zones, tax policies, and support institutions. It describes the county's location within Croatia and Europe, major transportation infrastructure like airports, railroads, roads, and ports. Details are given on several business zones within the county offering land for sale or development, including incentives like tax reductions and utility fee exemptions available to entrepreneurs. Support for investors is also mentioned, with contact information for various zones and municipalities.

1. KOPRIVNICA KRIZEVCI COUNTYINVESTORS GUIDE(FDI)Koprivnica, June 2011

2. CONTENTGEOGRAPHICAL POSITIONTRAFFIC CONNECTIONSLOCATION OF BUSINESS ZONES IN KOPRIVNICA-KRIŽEVCI COUNTYTAX POLICYCONSTRUCTIONBUSINESS PERMITSCOMPANY ESTABLISHMENTSUPPORT INSTITUTIONS

3. I. GEOGRAPHICAL POSITION OF THE REPUBLIC OF CROATIA TheRepublicof Croatia (RH) is a europeancountry, geographicallysituated at thecrossingfrom Central to Southeast Europe. Croatia borderswithSloveniaandHungary on north, withSrbia on east, on thesouthand east withBosniaandHerzegovinaandMontenegro. Croatia has a seaborderwith Italy at Adriatiacsea. Area total oftheRepublicof Croatia: 56.538 km2 Numberofinhabitants: 4.437.460GDP(Grossdomesticproduct) RH (2009): 10.246 €Teritorialorganization: 20 counties + The City of ZagrebArea total of Koprivnica Križevci County: 1.748 km2Numberofinhabitants: 124.467 GDP KKŽ: 8.560,00 €

4. INTERNATIONAL INTEGRATIONS OF THE REPUBLIC OF CROATIA3. EU Croatia will become a 28th fullmember of EU(European Union) until the year 2012UNOn May 22nd 1992 Croatia became a full memberof theUN (United Nations)INTERNATIONAL AGREEMENTS WITH THE PEOPLE'S REPUBLIC OF CHINA AND THE REPUBLIC OF CROATIA1. Agreement between the Government of the Republic of Croatia and the Government of the People‘s Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income2. Agreement between the Government of the Republic of Croatia and the Government of the People‘s Republic of China Concerning the Encouragement and Reciprocal Protection of Investments4. CEFTA (Central European Free TradAgreement) members are Albania, Bosnia and Herzegovina, Montenegro, Croatia,Macedonia, Moldova,SerbiaandUNMIK / Kosovo2. NATO On April 1st 2009Croatia became a full memberof NATO(North Atlantic TreatyOrganisation)

5. II. TRAFFIC CONNECTIONS – AIR TRAFFIC9 airports(7 international- Zagreb, Osijek, Pula, Rijeka, Zadar, Split, Dubrovnik, 2 local- Brač, Mali Lošinj)Air distance:Beč - 360 kmPariz - 1410 kmBruxelles - 1355 kmPrag - 620 kmBudimpešta - 350 km Rim - 880 km

6. TRAFFIC CONNECTIONS - RAILWAY Distance from Koprivnica to major cities RAILWAY(KM) Zagreb (airport) 87Koprivnica – Rijeka (seaport) 316Koprivnica – Wiena 387Koprivnica – Budapest 307Inthe plan is constructionofthesecond railway trackline from Rijeka to theHungarianborder, withpossibilityofEuropean R-65 corridorinthedirectionofport Rijeka to theBalticdetermination.

7. TRAFFIC CONNECTION PANEUROPEAN RAILWAY CORRIDOR VBBOTOVO-ZAGREB-RIJEKAMaximumspeedplannedpersections:Botovo – Dugo Selo 160 km/h

8. railway junction 120 km/h

9. Horvati – Krasica 160 km/h

10. railway junction 80 km/hApproximate distance:Botovo – Koprivnica – Zagreb – Rijeka 242 kmApproximateinvestmentcostsUpgrade of the existing tracks and construction of new tracks on the section Botovo–Zagreb–Rijeka per sectors I.Botovo– DugoSelo 0,47 billion€II. Zagreb Junction 0,49 billion€III. Horvati– Krasica 2,47 billion€IV. Rijeka Junction** 0,22 billion€ Total 3,65 billion€

11. TRAFFIC CONNECTIONUPGRADE AND MODERNIZATION OF RAILWAY LINE DIRECTION BOTOVO– ZAGREB–RIJEKAImportance for the RoC:connects central and maritime part of the country,

12. connects agriculture and tourism,

13. connects industrial potential of the country with port capacities in the Rijeka basin, SIGNIFICANT DEVELOPMENT OF THE RIJEKA PORT ON THE ADRIATICPort of RijekaRijeka Gateway Project:

14. Construction of container, passanger and Ro-Ro terminal

15. EUR 190 million (IBRD loan EUR 160 million)

16. Porto Baross - Urban port interfaceImportance for the RoC and the EU: the shortest railway connection between Hungary, other Central European countries and Mediterranean,

17. encourages the development of the Rijeka Port and transit railway traffic between Croatia and Central European countries,

18. provides opportunity for subsequent development of transit railway traffic between Western Europe and the Balkan via Croatia,

19. has significant influence on environmental protection due to redirection of large volumes of freight from road to railway.TRAFFIC CONNECTIONS – ROADPAN EUROPEAN CORRIDORSPan-European transport corridors in the Republic of Croatia:Vb – Budapest-Varaždin-Zagreb-RijekaVc – Budapest-Osijek-Sarajevo- PločeVII – Danube riverX – Salzburg-Villach-Ljubljana-Zagreb-Beograd-Skopje-ThessalonikiXa – Graz-Maribor-Zagreb

20. TRAFFIC CONNECTIONS – ROADDistance from Koprivnica to major cities ROAD(KM)ZAGREB (airport) 101RIJEKA (seaport) 288WIENA 370BUDAPEST 315PRAGUE 740WARSZAW 1110BERLIN 1120PARIS 1460ISTAMBUL 1450MADRID 2310TRANSPORT CORRIDORS ESTABLISHED IN CHAPTER 21PLANNED HIGHWAY CONSTRUCTION 2.720 km railways 29.547 km roads (public)

21. IV. BUSINESS ZONEDIVISION OF THE REPUBLIC OF CROATIA BY COUNTIES AND STATISTICAL REGIONSIn Koprivnica Križevci County is total of 38.000 inhabitantsemployed, fromwhich 5.000 is employedat theareaofthebusinesszonesin 116 companiesDanica-thebiggestbusiness zone in Koprivnica Križevci Countyemployes2.000 people. Belupo, Podravka, CarlsbergMore informationsaboutthezones: www.pora.com.hr

22. Businesszonesin Koprivnica-Križevci CountyMore informationsaboutthezones: www.pora.com.hr

23. PRIORITY BUSINESS ZONEBUSINESS ZONE KOPRIVNIČKI IVANEC, KOPRIVNIČKI IVANEC Useandpurposeofthe zone Locationoftheareacoverage UPU „Business zone Koprivnički Ivanec related to broaderarea“ AREA TOTAL OF THE ZONE: 241 ha 1. phase: 30 ha, fromwhich is approximately 26,6 ha for sale Ownership: Koprivnički Ivanec MunicipalityPrice: 12-15 Eur/m2Wayofselling: publictendersContact: opcina.kop.ivanec@kc.t-com.hr

24. INCENTIVES TO ENTREPRENEURSLOCAL INCENTIVES TO ENTREPRENEURS IN THE ZONE KOPRIVNIČKI IVANECUtility fee payment incentivesThe utility fee decision on the area of KoprivničkiIvanec Municipality (KoprivnicaKriževcy County Official Gazzete 14/07 i 14/08) The utility fee height is determinated with zone coefficient multiplication (0,2) with purpose coefficient (2,0 for production activities) and the point value (1,80) which amount 0,10€ /m2.Incentives of utility fee payment to the entrepreneurs:100% reduced utility fee in the first year of performing the activities75% in the second year of performing the activities50% in third year of performing the activities25% in fourth year of performing the activitiesPublic contributionThe public contribution decision on the area of KoprivničkiIvanec Municipality (KoprivnicaKriževcy County Official Gazzete 14/07 )Unit value of the public contribution in the zone KoprivničkiIvanec is 30 kn/m3 , and it is multiplied with purpose coefficient (0,60 for producing facilities over10000 m3 , ) and with volume which is 2,43€ /m3.

25. BUSINESS ZONE GORNJI ČRET, KRIŽEVCIAREA TOTAL OF THE ZONE: 45 ha OWNERSHIP: the town of KriževciDISPOSAL OF BUILDING LAND:1) Sale throughpublictenders: price oftheland for sale is 16,4 EUR/m2 2) Grantingconstructionrights through public tenders: price of theland with construction rights is 0,07 EUR/m2 permonthCONTACT: financije@krizevci.hrDISTANCE: center of Križevci – 2 km (22.324 inhabitants)

26. center of Koprivnica – 33 km (30.944 inhabitants)TRAFFICAL POSITION OF THE COUNTYSTATE ROAD: ZAGREB-KOPRIVNICA RAILWAIL: RIJEKA - BUDAPEST NEW HIGHWAY: HUNGARIAN BORDER VARAŽDINHUNGARIANBORDEROSIJEK

27. BENEFITS REGARDING PAYMENT OF COMMUNAL COMPENSATION 100% reduction for the first year of business 75% reduction for the second year of business 50% reduction for the third yearofbusiness25% reduction for thefourthyearofbusinessBENEFITS FOR ENTREPRENEURSPARTIAL EXEMPTION FROM THE COMMUNAL CONTRIBUTIONEntrepreneursinbusinesszones are exemptfromthecontriution as it folllows:For the business objects of the volume of 1000 m3 to 5000 m3 the communal contribution is reduced by 35%For the business objects of the volume over 5000 m3 the contribution is reduced by 60%KRIŽEVCI CITY IS READY TO OFFER CONSULTING AND TEHNICAL ASSISTANCE IN THE REALIZATION OF INVESTMENTSCOMPANY TAX BENEFITS:The entrepreneurs – beginners (legal and physical entities) will be exempt to the Company tax, as follows :In 1st year of business 100% In 2nd year of business 75% (tax: 70€)In 3rd year of business 50% (tax: 140€)The existing entrepreneurs that employwith notime limit contracts :up to 10 employees - exempt of the Company tax by 25% (tax: 210€)

28. up to 25 employees - exempt of the Company tax by 50% (tax: 140€)

29. more than 25 employees - exempt of the Company tax by 100% BUSINESS ZONE KUTNJAK, LEGRADLOCATION OF THE GEOTHERMAL PROGRAMME ECONOMY ZONE OVERVIEW OF PURCHASED PARCELS AND PREPARED PURCHASE CONTRACTSBENEFITS REGARDING THE DEVELOPMENT OF EXISTING AND OPENING NEW ENTREPRENEURIAL ACTIVITIES AND EMPLOYMENTCOMMUNAL COMPENSATIONphysicaland legal entitiesengagedinbusiness are partially exempted from the communal compensation: - 50% of total yearsdebit – companyheadquartersoutsidetheLegradmunicipalityareaandemployingworkersfromLegradmunicipalityarea - 75% of total yearsdebit – companyheadquartersinsidetheLegradmunicipalityareaandemployingworkersfromLegradmunicipalityareaCOMMUNAL CONTRIBUTIONEntrepreneurs who build or rebuild business facilities for performing manufacturing or other business activities, in order to increase the number of employees, withconditionthat the headquarterof activities is situatedin the Legrad Municipality.Economy zone size is 142,5 ha with 720 plotsLand repurchase is in the progress; until October 2010 85 ha was repurchased. Legrad municipality was the repurchase bearer.Endofrepurchase : year 2011KONTAKT: opcina-legrad@kc.t-com.hrWith land transfer (a donationfromtheLegradmunicipalityandtheFund) Geopodravina Ltd. will become the landowner.

30. PROJECTS INCLUDED IN THE GEOTHERMAL PROGRAMME