Da Qing Long Jiang Wind Farm Project
 
50MW Wind Turbines Equipment Supply Contract
 

 
This document is a summary translation of key terms only from the original
contract that is written in Chinese.  It is a summary, not a complete
translation, and not all words or meanings may have the same effect as in the
original contract.
 

 
 

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Date: August 30, 2007
 
Venue: Wuhan
 
1.
Definition

 
1.1.
“Buyer” means Da Qing Long Jiang Wind Power Ltd.

 
1.2.
“Supplier” means Wuhan Guo Ce Nordic New Energy Ltd.

 
2.
Contract

 
2.1.
This contact should include manufacturing, transportation, installation,
testing, successful production and quality assurance of wind turbines equipment
(towers are not included). This contract should also include all the accessories
equipment, replacement parts, specialized tools, blue prints, technical support,
training and all the technical documents to ensure the installation, testing,
training, technical support, operation and maintenance.

 
2.2.
Condition of equipments delivery: The equipments should be delivered to buyer at
the project site. Supplier should be responsible for the train/ship arrangement
to deliver the equipments to the site that designated by the buyer.

 
3.
Products and equipments

 
3.1.
Suppler to should supply the following equipments to the buyer:

 
3.1.1.
1st batch should include:

 
No.
Equipment name
Type
Units
Delivery date
Venue
1
Wind turbines
DW1.0/56
10
4 Ms aft. the signing date
Project site
2
Centralized surveillance system
DW-CT02
1
4 Ms aft. the signing date
Project site
3
Replacement parts
 
1
4 Ms aft. the signing date
Project site
4
Consumable products
 
1
4 Ms aft. the signing date
Project site
5
Specialized tools
 
1
4 Ms aft. the signing date
Project site
6
Training (domestic)
 
120ppls days
2 Ms aft. the signing
Wuhan
7
Training (oversea)
 
30ppls days
2 Ms aft. the signing
Sweden
8
Installation and testing
   
1 Week aft. equipment delivery
Project site
9
Technical support
24 months
 
After installation
Project site
10
Technical documents
 
10
Prior to signing contract
Project site
11
Transportation and insurance
 
10
To be arranged before transportation
Project site

 
 

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3.1.2.
2nd batch should include:

 
No.
Equipment name
Type
Units
Delivery date
Venue
1
Wind turbines
DW1.0/56
40
10 Ms aft. receiving the notice from the buyer
Project site
2
Replacement parts
 
1
10 Ms aft. receiving the notice from the buyer
Project site
3
Consumable products
 
1
10 Ms aft. receiving the notice from the buyer
Project site
4
Installation and testing
   
1 Week aft. equipment delivery
Project site
5
Technical support
24 Ms
 
After installation
Project site
6
Technical documents
 
40
Prior signing the contact
Project site
7
Transportation and insurance
 
40
To be arranged before transportation
Project site

 
4.
Contract terms

 
4.1.
Total contract is valued at RMB 316.900238 million, including:

 
4.1.1.
50 units of wind turbines at RMB 287.50 million (50units×RMB 5.75 million per
unit)

 
4.1.2.
Others at RMB 29.400238 million, including technical documents, technical
service fees, taxes, transportation costs, insurance and other expenses related
to the contract.

 
 
 

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5.
Payment terms

 
5.1.1.
Within 30 days after the contract effective date, buyer should pay 5% (RMB
15.845 million) to the supplier as deposit

 
5.1.2.
Within 60 days after the contract effective date, buyer should pay 25% of the
1st batch equipment price (RMB 15.6875 million) to the supplier as pre-payment.

 
5.1.3.
Upon the delivery of the equipment at project site, buyer should pay 35% of the
1st batch equipment price (RMB 21.9765 million) to supplier

 
5.1.4.
Upon successful testing, the buyer should pay 30% of the 1st batch equipment
price (RMB 18.837 million) to supplier.

 
5.1.5.
Retention money as 5% of the 1st batch equipment price (RMB 3.1395 million) to
be paid by buyer after signing the final acceptance letter.

 
5.2.
Payment terms of the 2nd batch equipments:

 
5.2.1.
After receiving a written notice from the buyer, and within 30 days that the
supplier commences the production of the 2nd batch equipments, the buyer should
pay 25% of the 2nd batch equipment price (RMB 63.5275 million) as pre-payment to
the supplier.

 
5.2.2.
35% of the 2nd batch equipment price (RMB 88.9385 million) should be paid to the
supplier after buyer receives the equipments.

 
5.2.3.
30% of the 2nd batch equipment price (RMB 76.233 million) to be paid after
installation and testing.

 
5.2.4.
5% retention money (RMB 12.7055 million) to be paid after signing the final
acceptance letter.

 
 

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