| **DATED****2004**                                                                                                                                                                                                                                   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)                 RIDGEWOOD                ROC II 2003 LLC (2)                 CLP                DEVELOPMENTS LIMITED                                                                                                        |
|  **DEVELOPMENT                SERVICES AGREEMENT**relating                to the development of additional electricitygeneration                plants on behalf of certain within mentionedProject                Companies    |
|                                                                                                                                                                                                                                                |
| **EVERSHEDS                LLP**                                                                                                                                                                                                                    |
| 115                Colmore RowBirminghamB3                3ALTel:                +44 121 232 1000Fax:                +44 121 232 1900                                                                                                               |

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**THIS      AGREEMENT**

**BETWEEN**

| **(1)** | **RIDGEWOOD                ROC II 2003 LLC**                a                Delaware limited liability company trading in the UK whose registered                address is situate at 947 Linwood Avenue, Ridgewood, NJ, 07450, USA                ("**Ridgewood**");                and |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(2)** | **CLP                DEVELOPMENTS LIMITED**                a                company incorporated in England and Wales with company number 04502342                whose registered address is situate at Units 14-15, Queensbrook,                Bolton                Technology Exchange, Spa Road, Bolton BL1 4AY (the “**Project                Manager**”). |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**WHEREAS**

| (B) | Each                Project Company with Existing Plant is desirous of adding additional                generating capacity and additional infrastructure improvements at                its Site                so that such Project Company might use the surplus landfill gas to                generate additional electricity and each Project Company with no                Existing                Plant is desirous of constructing, developing and operating electricity                generating equipment at its Site in order to generate new electricity,                such electricity to be sold, along with its environmental attributes,                to                one or more third parties. |
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| (C) | Ridgewood                has entered into an agreement with CLPE ROC -2 Limited, CLPE ROC                -2A                Limited, and the Project Companies dated on or around the date hereof                (“**ROC** **Project                DSA**”)                pursuant to which Ridgewood has agreed to procure, construct, install,                engineer, develop (to Commissioning) and make available for use by                the                Project Companies (using monies provided by the Powerbank II Fund)                the                additional electricity generation plants in order that the Project                Companies may utilise the landfill gas extracted from the Site as                stated                in Recital (B). |
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| (D) | It                is the intent of the parties hereto that Ridgewood will at all times                and,                for the avoidance of doubt, during any period of development following                the                date hereof and after Commissioning, be the legal owner of the                Equipment. |
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| (E) | The                Project Manager is willing to be engaged as aforesaid on the following                terms in                order to bring about Commissioning. |
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| **1.  ** | **INTERPRETATION** |
|--------------------|--------------------|

| **1.1  ** | **Definitions** |
|---------------------|-----------------|

| “**Commissioning**” | means                  the stage at which the installation of the Equipment at the relevant                  Project Company Site has been completed and the New Project has                  been                  consistently (over a period of 7 days) exporting electricity to                  the                  National Grid and Commissioned shall have the appropriate meaning; |
|---------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| “**Equipment**”  | means                  in relation to any New Project, the electricity generating facilities                  together with all and any gas extraction equipment, blower fans,                  wells,                  pipes and the transformers to connect the power generation equipment                  to                  the electricity distribution system installed or constructed on                  the                  relevant Site (other than, for the avoidance of doubt, the Existing                  Plant); |
|-----------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| "**Export                  Capacity**"  | means                  the amount of electricity expressed in megawatts the Equipment                  is capable                  of exporting to the National Grid on a consistent basis assuming                  that the                  Equipment is operating to its maximum                  capacity; |
|----------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| "**Fees**"  | means                  the fees payable by Ridgewood to the Project Manager pursuant to                  **Clause                  7**;  |
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| "**Group                  Company**"  | means                  the Project Manager and any holding company of the Project Manager                  and                  its/their respective subsidiaries from time to                  time; |
|--------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| "**New** **Project**"  | means,                  in relation to any Project Company, the project for the procurement,                  design, construction, installation, development and Commissioning                  on a                  “turnkey” basis of the Equipment and all associated equipment to be                  supplied by the Project Manager to Ridgewood at a given Site pursuant                  to                  the ROC Project DSA; |
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| **“NFFO                  Power Purchase Agreements”**  | means                  contracts with The Non Fossil Purchasing Agency Limited and those                  in                  connection with Scottish renewable orders including any replacement                  contract with the Non Fossil Purchasing Agency Limited concluded                  in                  connection with the implementation of the new British Electricity                  Trading                  and Transmission Arrangements in Scotland presently targeted for                  on or                  around April 2005; |
|-------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| "**Project                  Budget**"  | means                  in relation to any New Project, the budget of necessary expenditure                  required to bring about the Commissioning of the same, as prepared                  by the                  Project Manager and agreed with Ridgewood’s                  Representative; |
|---------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| “**Project                  Companies**”  | means                  those companies listed in Schedule 1 and any company that may accede                  to                  the ROC Project DSA in accordance with the provisions set out therein                  and                  each one a “Project Company”; |
|------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **“Project                  Manager’s Representative”** | means                  Dominic Greenough or such other authorised representative of the                  Project                  Manager as shall be nominated by it in substitution for such                  person; |
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| “**Ridgewood’s** **Representative**”  | means                  Chris Naunton or such other director, employee or authorised                  representative of Ridgewood as shall be nominated by Ridgewood                  in                  substitution for such person; |
|-------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| "**Project                  Timetable**"  | means,                  in relation to any New Project, the timetable of principal events                  in                  bringing about Commissioning of the same as is set out in Schedule                  2 or                  any changes thereto prepared by the Project Manager and agreed                  with                  Ridgewood’s Representative; |
|------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| "**Services**"  | means                  the services to be provided by the Project Manager under this Agreement                  as                  described in Schedule 3; |
|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| "**Site**"  | means,                  in relation to any New Project, the landfill site on which the                  Equipment                  concerned is to be constructed and/or                  installed. |
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| 1.2   | Words                and expressions defined in the Companies Act 1985 (as amended) (the                "**Companies                Act**")                shall (unless the context clearly does not so permit) bear the same                meanings where used in this                Agreement. |
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| 1.3   | The                ejusdem generis rule of construction shall not apply to this Agreement                and                accordingly general words shall not be given a restrictive meaning                by                reason of their being preceded or followed by words indicating a                particular class or examples of acts matters or                things. |
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| 1.4   | Words                importing the singular shall include the plural and vice versa and                words                importing any gender shall include all other genders and references                to                persons shall include corporations and unincorporated                associations. |
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| 1.5   | References                in this Agreement to statutory provisions shall be construed as references                to those provisions as respectively amended consolidated extended                or                re-enacted from time to time and shall include the corresponding                provisions of any earlier legislation (whether repealed or not) and                any                orders regulations instruments or other subordinate legislation made                from                time to time under the statute                concerned. |
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| 1.6   | References                to this Agreement shall include the Schedules hereto which shall                form part                hereof and shall have the same force and effect as if expressly set                out in                the body of this Agreement. |
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| 1.7   | The                Clause headings in this Agreement are for convenience only and shall                not                affect the interpretation hereof. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | **APPOINTMENT** |
|----------------|-----------------|

| **3.  ** | **SERVICES** |
|--------------------|--------------|

| 3.1   | Subject                to **Clause                3.2**,                the Project Manager will provide the Services in relation to each                New                Project causing the minimum amount of disruption to the operation                of the                Existing Plant as possible. In relation to any New Project, the list                of                services set out in Schedule 3 may be amended at any time and from                time to                time by written agreement by Ridgewood and the Project Manager in                respect                of all or any one New Project. |
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| 3.2   | Where                at the date hereof, some Equipment exists at a Site then, upon payment                of                the fee payable in accordance with **Clause                7.1**,                the Project Manager will transfer or cause to be transferred to Ridgewood                legal title to such Equipment and Ridgewood shall make all such Equipment                available to the Project Manager to complete Commissioning in accordance                with the terms hereof. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | **PROJECT                MANAGER’S AUTHORITY** |
|----------------|------------------------------------------------------|

| 4.1   | The                Project Manager shall have the authority to act on behalf of Ridgewood                as                its agent solely to the extent reasonably necessary for the Project                Manager to carry out its duties and to provide the Services hereunder                and                for no other purpose. |
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| 4.2   | Ridgewood                shall indemnify and keep indemnified the Project Manager for any                loss,                damage, costs and expenses suffered or incurred by it as a result                of the                Project Manager acting or purporting to act on behalf of Ridgewood                where                the Project Manager has been authorised in so acting, either pursuant                to                **Clause                4.1**                or                otherwise. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3   | The                Project Manager shall be entitled to hold itself out as agent of                Ridgewood                for the purposes of properly carrying out the Services in relation                to each                New Project and Ridgewood shall confirm the appointment of the Project                Manager. |
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| 4.4   | At                no time shall the Project Manager claim ownership of or any right,                title                or interest to the Equipment and the Project Manager shall do all                such                acts and enter into such documents as may be reasonably necessary                and                always at the expense of Ridgewood to vest ownership of the Equipment                in                Ridgewood. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | **LEVEL                OF CARE AND APPLICATION OF                RESOURCES** |
|----------------|------------------------------------------------------------------------------|

| 5.1   | In                carrying out the Services the Project Manager shall exercise such                reasonable skill, care and diligence to be expected of a competent                consultant and project manager experienced in undertaking services                similar                to the Services in relation to projects of a similar size, scope                and                complexity to the New Projects. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2   | The                Project Manager shall make all necessary visits to each Site for                the                proper performance of the Services, to inspect the progress and quality                of                the development of the New Project thereat and generally to ensure                the                proper execution and Commissioning of that New                Project. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3   | The                Project Manager shall devote sufficient resources to perform the                Services                in accordance with the terms                hereof. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **6.  ** | **UNDERTAKINGS                OF RIDGEWOOD** |
|--------------------|----------------------------------------------|

| 7.   | **FEES** |
|----------------|----------|

| 7.1   | Subject                to the provisions of **Clause                3.2**and**12.6**,                the fees payable to the Project Manager for the provision of the                Services                in relation to the New Projects hereunder (exclusive of VAT) shall                be a                fixed fee of eight hundred and fifty thousand pounds (£850,000) per                megawatt of rated Export Capacity Commissioned at each Site pro rated                to                the extent that such installed Export Capacity is expressed in other                than                whole megawatt amounts (“the Fee”). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2   | The                Fee payable in accordance with the provisions of **Clause                7.1**shall                be paid by Ridgewood to the Project Manager or, as the Project Manager                may                in writing direct, in accordance with the terms of the Project Timetable                and will be paid on demand at such time as payments are made or                commitments are entered into where such payments or commitments are                of a                material amount and are entered into and/or made with respect to                a New                Project. Materiality is to be determined by the Project Manager acting                in                good faith. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3   | If                the Fee or any part thereof is not paid on the due date, Ridgewood                shall                be liable to pay interest on such sum from the due date of payment                at the                annual rate of 2 percent above the base lending rate from time to                time of                Barclays Bank plc, accruing on a daily basis until payment is made                in                full. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4   | The                Project Manager shall pay to Ridgewood with respect to each New Project,                an amount in lieu of interest equal to 0.8333 per cent per month                (or part                thereof) on all amounts advanced to the Project Manager by Ridgewood                as                progress payments with respect to such New Project pursuant to                **Clause                7.2**,                such interest to accrue up to the earlier of (i) the date of Commissioning                (ii) the date, if any, upon which the Equipment is resited under                **Clause                10.2**                and (iii) the Relevant Project Company Long Stop Date (as defined                in the                ROC Project DSA)**.**  |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | **DURATION                OF APPOINTMENT** |
|----------------|--------------------------------------------|

| 8.1   | Subject                to **Clause** **8.2**,                this Agreement shall remain in effect in relation to each New Project                until the New Project concerned has reached Commissioning or until                it is                agreed between the parties that there is no reasonable prospect of                that                New Project Commissioning and the Project Manager shall not be entitled                to                terminate this Agreement except as otherwise provided herein. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2   | Ridgewood                may terminate this Agreement by giving 21 days' notice in writing                if the                Project Manager shall commit a material breach of its obligations                hereunder and shall fail to remedy such breach within a reasonable                time of                notice of such breach being given to it. The right to terminate this                Agreement granted to Ridgewood under this **Clause** **8.2**                shall be without prejudice and in addition to any other remedies                available                to Ridgewood in respect of such breach but subject always to the                provisions of **Clause                14.4**. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.3   | The                Project Manager may terminate this Agreement by giving 21 days’ notice in                writing if Ridgewood shall commit a material breach of its obligations                hereunder and shall fail to remedy such breach within a reasonable                time of                notice of such breach being given to it. The right to terminate this                Agreement granted to the Project Manager under this **Clause                8.3**                shall be without prejudice and in addition to any other remedies                available                to the Project Manager in respect of such                breach. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.4   | Upon                termination of this Agreement in relation to any New Project the                Project                Manager shall return any part of the Fee received by it that has                not been                expended on the provision of Services or committed to be expended                in                accordance with the Project                Timetable. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | **THE                PROJECT MANAGER’S                PERSONNEL** |
|----------------|-------------------------------------------------------------------------|

| 9.1   | The                Project Manager shall use reasonable endeavours to procure that the                Project Manager’s Representative is fully acquainted with all matters                relating to the development of the New Projects and shall devote                proper                attention to the Services. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2   | The                Project Manager shall be under no obligation to provide the Services                through any particular person and the Project Manager shall be entitled                to                change the personnel engaged in the performance of the Services without                first notifying Ridgewood. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.   | **PROJECT                TIMETABLES AND PROJECT                BUDGETS** |
|-----------------|--------------------------------------------------------------------------|

| 10.1   | The                Project Manager shall use reasonable endeavours to ensure that the                development of each New Project is carried out in accordance with                the                Project Timetable for that New Project, subject to the terms                hereof. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2   | If,                prior to Commissioning, Ridgewood wishes to re-site any Equipment                whether                at another Project Company or elsewhere or if it wishes to substitute                any                Project Company then, in addition to the fees payable pursuant to                **Clause                7**,                Ridgewood shall pay the Project Manager an amount equal to the cost                incurred by the Project Manager in such re-siting or substitution                **PROVIDED                ALWAYS**                that Ridgewood and the Project Manager shall negotiate in good faith                to                agree such cost and, if no agreement can be reached, then the Project                Manager shall be under no obligation to re-site the Equipment or                substitute the Project Company. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.   | **COMMUNICATIONS                PROCEDURES** |
|-----------------|----------------------------------------------|

| 11.1   | The                Project Manager's Representative shall meet with Ridgewood’s                Representative monthly to report on and review the progress in the                development of the New Projects. Such meeting to take place either                in                person or by telephone with in person meetings taking place at the                Project                Manager’s office in Bolton, a Site or in such other location as the                Representatives may agree. |
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| 11.2   | The                Project Manager shall inform Ridgewood as soon as reasonably practicable                if it has reason to suspect that it may prove impossible or impracticable                to complete any New Project within the relevant Project                Timetable. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.   | **ASSIGNMENT,                DELEGATION AND                ACCESSION** |
|-----------------|------------------------------------------------------------------------|

| 12.1   | Ridgewood                shall not without the prior written consent of the Project Manager                assign                or delegate any of its duties under this Agreement to any other person,                firm or company. |
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| 12.2   | The                Project Manager may assign or delegate any of its duties under this                Agreement without first notifying Ridgewood to any other company                provided                always that: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2.1   | the                Project Manager may only assign or delegate such duties to a company                being                a Group Company; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2.2   | Ridgewood                shall accept the performance by any such other Group Company of such                duties as performance by the Project Manager;                and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2.3   | Ridgewood                shall continue to pay the Fee in accordance with **Clause                7**to                the Project Manager or as the Project Manager may instruct                Ridgewood. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.3   | The                Project Manager may assign or delegate any of its duties under this                Agreement to a company not being a Group Company with the prior written                consent of Ridgewood, such consent not be unreasonably withheld or                delayed. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.4   | The                Project Manager hereby acknowledges that the identity of the Project                Companies set out in **Schedule                1**                may change insofar as Ridgewood can substitute a Project Company                currently                set out in **Schedule                1**                prior to its commissioning with another company on a one for one                basis.                The Project Manager agrees to provide the Services to the Project                Companies listed in **Schedule                1**                (from time to time) and any company that is added to **Schedule                1**                in                substitution for a company that is currently listed provided, that                Ridgewood furnishes the Project Manager with a copy of the relevant                deed                of release, adherence and accession that permits the Project Company                to be                added to **Schedule                1**                to                accede to the ROC Project DSA. Where a Project Company is removed                from                **Schedule                1**                at                the election of Ridgewood, it shall also be removed from **Schedule                2**                (Project Timetable) and the company that is substituted into **Schedule                1**                shall also be inserted into **Schedule                2**                and the parties hereto shall use commercially reasonable endeavours                to                agree the relevant information that is to be inserted into **Schedule                2**in                respect of the company that is substituted into **Schedule                1**. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.5   | Where                a Project Company is removed from **Schedule                1**,                any rights, obligations and/or liabilities that the parties hereto                have to                or against the other in respect of that Site ,other than as to rights,                obligations and liabilities pursuant to **Clauses                10.2**                and **14.3**,                shall be waived by the parties hereto. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.6   | Where                Ridgewood exercises its right to substitute a Project Company pursuant                to                **Clause                12.4**                above, any sums paid to the Project Manager by Ridgewood pursuant                to                **Clause                7.1**                in                respect of the substituted Project Company (“the Prepayments”) shall be                deemed to be a pre-payment in respect of the Services undertaken                by the                Project Manager in respect of the new company and the Project Manager                agrees that the only demand for payment in respect Services provided                to                such new company shall be for an amount equal to the difference between                the Prepayments and the Fee which would otherwise be payable in respect                of                the new company calculated in accordance with **Clause                7.1**                (“the Excess”). The provisions of **Clause                7.3**                shall apply to the Excess. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.   | **CONFLICT                OF INTEREST** |
|-----------------|-----------------------------------------|

| **14.  ** | **LIMITATION                OF LIABILITY** |
|---------------------|--------------------------------------------|

| 14.1   | The                Project Manager will use reasonable endeavours to deliver the Services                hereunder within the time agreed and to the standard agreed and,                if no                time or standard is agreed, then within a reasonable time and to                a                reasonable standard. If despite those endeavours the Project Manager                is                unable for any reason other than the Project Manager’s wilful default, to                deliver such Services the Project Manager will be deemed not to have                breached this Agreement. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2   | It                is agreed that the Project Manager will have no liability to Ridgewood                for                direct, indirect or consequential loss (all three of which terms                includes,                without limitation, pure economic loss, loss of profits, loss of                business,                depletion of goodwill and like loss) howsoever caused save that the                Project Manager does not exclude its liability (if any) to Ridgewood                for                any direct loss arising from the Project Manager’s wilful default (but,                for the avoidance of doubt, the Project Manager does exclude liability                for                any indirect or consequential loss that may arise from such wilful                default) and for personal injury or death resulting from the Project                Manager’s negligence, fraud or for any matter which it would be illegal                for the Project Manager to exclude or to attempt to exclude its                liability. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.3   | Ridgewood                agrees to indemnify and keep indemnified and hold the Project Manager                harmless from and against all and any claims, awards, penalties,                damages                or loss (including professional costs) whatsoever and howsoever caused                as                a direct or indirect result of any damage or loss (including, without                limitation, pure economic loss, loss or profit, loss of business,                depletion of goodwill and the like loss) caused by the Equipment                whether                prior to , at or any time after Commissioning to the Site, the Equipment,                the Existing Plant and the Project Manager’s personnel. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.4   | For                the avoidance of doubt Ridgewood agrees that its only remedy under                this                Agreement (save in the case of the Project Manager’s wilful default) shall                be the right of termination (if any) under **Clause                8**. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.   | **RELATIONSHIP                OF THE PARTIES** |
|-----------------|------------------------------------------------|

| 16.   | **DISPUTES** |
|-----------------|--------------|

| 16.1   | If                a dispute of any kind whatsoever arises between the parties in connection                with or arising out of this Agreement it shall be settled in accordance                with the following provisions. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2   | For                the purpose of this Clause, a dispute shall be deemed to arise when                one                party serves on the other a notice in writing (hereinafter called                the                "**Notice                of Dispute**")                stating the nature of the dispute and requiring the dispute to be                considered by an adjudicator who, if not agreed upon between parties,                shall be appointed by the Chairman of the Chartered Institute of                Arbitrators in England upon application by either of them. The dispute                shall thereafter be referred and considered by such adjudicator in                accordance with the procedure under the TeCSA Adjudication Rules                2002,                version 2.0 or any amendment or modification thereof being in force                at the                date of such notice. The recommendation of the adjudicator shall                be deemed                to have been accepted in settlement of the dispute unless written                Notice                to Refer under **Clause** **16**.**3**                is                served within one calendar month of the receipt of the adjudicator's                recommendation. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.3   | Where                either party is dissatisfied with any recommendation of an adjudicator                appointed under **Clause                16**.**2**                then such party may within one calendar month of receipt of the                adjudicator's recommendation refer the dispute to the jurisdiction                of the                court by service a written notice (the "**Notice                to Refer**")                on the other party. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.   | **NOTICES** |
|-----------------|-------------|

| 17.1   | Any                notice or other communication requiring to be given or served under                or in                connection with this Agreement shall be in writing and shall be                sufficiently given or served if                delivered:- |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | in                the case of Ridgewood to: |
|--------|-----|---------------------------------------------|

|   | (b) | in                the case of the Project Manager to: |
|--------|-----|-------------------------------------------------------|

**Clause      17**

| 17.2   | Any                notice shall be delivered by hand or sent by legible facsimile                transmission or pre-paid first class post (airmail if sent to or                from an                address outside the United Kingdom) and if delivered by hand or sent                by                legible facsimile or email transmission shall conclusively be deemed                to                have been given or served at the time of despatch and if sent by                post                aforesaid shall conclusively be deemed to have been received 48 hours                from                the time of posting (or 72 hours if sent to or from an address outside                the                United Kingdom). |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.   | **FORCE                MAJEURE** |
|-----------------|----------------------------------|

| 19.   | **GOVERNING                LAW** |
|-----------------|----------------------------------|

| 20.   | **THIRD                PARTIES** |
|-----------------|----------------------------------|

| **21.  ** | **COUNTERPARTS** |
|---------------------|------------------|

----

**SCHEDULE      1**

**(The      Project Companies)**

|  **Name**                                      |  **Registered                Number**  |  **Place                of Incorporation**  |
|----------------------------------------------------------|--------------------------------------------------|-------------------------------------------------------|
|  Garlaff                Energy Limited         |  SC195540                              |  Scotland                                   |
|  Connon                Bridge Energy Limited   |  03754257                              |  England                                    |
|  Chelson                Meadow Energy Limited  |  03363593                              |  England                                    |
|  Auchencarroch                Energy Limited   |  SC195539                              |  Scotland                                   |
|  Jameson                Road Energy Limited    |  03754365                              |  England                                    |
|  Bellhouse                Energy Limited       |  03466081                              |  England                                    |
|  Beetley                Energy Limited         |  04939140                              |  England                                    |
|  Snetterton                Energy Limited      |  04939139                              |  England                                    |
|  Funtley                Energy Limited         |  5188256                               |  England                                    |

----

**SCHEDULE      2**

**(The      Project Timetable)**

|  **Project                Company**            |  **Number                of Engine(s)**  |  **Engine                Capacity**  |  **Stage**                           |  **Estimated                Date**  |
|----------------------------------------------------------|----------------------------------------------------|------------------------------------------------|------------------------------------------------|-----------------------------------------------|
|  Garlaff                Energy Limited         |  3                                       |  3MW                                 |  Engines                operational  |                                          |
|  Connon                Bridge Energy Limited   |  1                                       |  1.3MW                               |  Engines                operational  |                                          |
|  Connon                Bridge Energy Limited   |  1                                       |  1.3MW                               |  In                Commissioning     |  November                04         |
|  Chelson                Meadow Energy Limited  |  1                                       |  1MW                                 |  Engines                operational  |  September                04        |
|  Auchencarroch                Energy Limited   |  1                                       |  1MW                                 |  Under                construction   |  February                05         |
|  Jameson                Road Energy Limited    |  1                                       |  1MW                                 |  Engines                operational  |                                          |
|  Bellhouse                Energy Limited       |  1                                       |  0.6MW                               |  Under                construction   |  February                05         |
|  Beetley                Energy Limited         |  1                                       |  1MW                                 |  In                Commissioning     |  December                04         |
|  Snetterton                Energy Limited      |  1                                       |  0.8MW                               |  Under                construction   |  February                04         |
|  Funtley                Energy Limited         |  1                                       |  0.6MW                               |                                           |  June                04             |

----

**SCHEDULE      3**

**(Services      to be carried out)**

| 1.1     |  preparing                the Project                Timetable and Project Budget in relation to a New                Project; |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| 1.2     | preparing                the detailed design specification and plans of the Equipment to be                installed or constructed at each Site, together with such additional                plant                and infrastructure as may be necessary including, without limitation                and                for the avoidance of doubt, separate metering and connection for                the New                Project and the Existing Plant; |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.3     | the                procurement of the Equipment and such additional plant and infrastructure                as may be necessary; |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------|

| 1.4     | the                construction and installation of the                Equipment; |
|-----------------------------|-----------------------------------------------------------------------------------|

| 1.5     | the                testing of the Equipment to ensure it safely exports electricity                to the                National Grid; |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| 1.6     | engaging                the services of, supervising and co-ordinating the third party service                providers engaged in respect of a New                Project; |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.7     | advising                in connection with the obtaining of all necessary planning and other                consents for a New Project; |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| 1.8     |  advising                on and carrying                out the general administration of the Commissioning of a New                Project; |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.9     | providing,                at all times, information in relation to the Site for a New Project                and                the New Project generally including copies of all relevant documents,                plans and specifications, consents and reports and keeping Ridgewood                informed of the progress made in respect of bringing about of the                Commissioning of a New Project; |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.10   | monitoring                on behalf of Ridgewood compliance with statutory, local authority,                building control and fire officer consents and requirements required                to be                complied with in the course of bringing about the Commissioning of                its New                Project; |
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| 1.11   | monitoring                the cost control systems and budgets for each New                Project; |
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| 1.12    | endeavouring                to carry out each New Project substantially in accordance with its                Project                Timetable and Project Budget but at all times monitoring the                same; |
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| 1.13   | chairing                and minuting site meetings on behalf of a Project Company;                and |
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| 1.14   | providing                such assistance and advice in respect of a New Project as could reasonably                be expected of a project                co-ordinator. |
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**RIDGEWOOD      ROC II 2003 LLC**

**CLP      DEVELOPMENTS LIMITED**