EX-10.27






Exhibit 10.27




Agreement No: 200814




GRID CONNECTION ECONOMIC AGREEMENT






			
	PARTY A (PURCHASER):	 	LISHUI POWER INDUSTRY BUREAU
	 
	PARTY B (SELLER):	 	YUNHE COUNTY SHAPULONG HYDROPOWER

GENERATION CO., LTD.

(Shapulong Power Plant)







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Name of Power Purchaser: Lishui Power Industry Bureau




Contact Person: Wu Jianping




Telephone Number: 2100401      Fax:                       Zip Code: 323000




Mail Address: No.699, Zhongdong Road, Lishui City





			
	Bank of Deposit:	 	Lishui City Chuzhou Sub-branch, Industrial and Commercial Bank of China





Bank Account: 1210200009021000949




Tax Registration Number: 331100848862337




Business License Number: 3325001001125 (1/1)





			
	Name of Power Seller:	 	Yunhe County Shapulong Hydropower Generation Co., Ltd. (Shapulong Power
Plant)





Contact Person: Zha Guoqiang




E-mail: cgq1946@sohu.com            Telephone Number: 13645783722




Fax: 0578-2291172                           Zip Code:  323600 




Mail Address: No.42, Xinhua Street, Yunhe County




Name of Bank Account: Yunhe County Shapulong Hydropower Generation Co., Ltd.




Bank of Deposit: Yunhe County Sub-branch, Agricultural Bank of China




Bank Account: 815101040001415




Tax Registration Number: 331125704765490




Business License Number: 331100400000365




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For the purpose of coordinating the relationship between the Power Seller and the Power Purchaser,
specifying the rights and obligations of both Parties, establishing the normal relationship among
power generation, power purchase and power supply, and smoothly carrying out sale and purchase of
power, in accordance with the Contract Law of the People’s Republic of China, the Electric Power
Law of the People’s Republic of China, the Interim Measures on the Mediation of Power Disputes, the
Regulation on the Supply and Use of Power, the Administration Regulation on Grid Dispatching, and
other relevant laws and regulations, on the principle of equality and willingness, the Power Seller
and the Power Purchaser, after consultations, have entered into the following agreement to be
jointly observed and strictly implemented (“this Agreement”):





	1.	 	 Definition and Interpretation
	 
	1.1	 	Unless the context otherwise requires, the terminologies of this Agreement shall be
defined as follows:
	 
	1.1.1	 	“Power Plant” refers to the power generation facilities with the total
installed capacity of 25,000 kw (with the capacity of 12,500 kw per unit, the total
number of generators is two, specifically, No.1 and 2) owned, constructed, operated and
managed by the Power Seller and all auxiliary facilities stretching to the Division
Point of Property, which are located within Yunhe County, Zhejiang Province.
	 
	1.1.2	 	“Annual Actual On-grid Electricity Output” refers to the electricity
output transmitted to the Power Purchaser at the Metering Point each year. The metering
unit for electricity output is kwh.
	 
	1.1.3	 	“Power Purchaser’s Cause” refers to the requirements raised by or
liabilities assumed by the Power Purchaser, including the liabilities assumed by the
Power Purchaser due to the failure to implement relevant State provisions and standards,
etc., which results in the enlargement of the scope of accidents.
	 
	1.1.4	 	“Power Seller’s Cause” refers to the requirements raised by or
liabilities assumed by the Power Seller, including the liabilities assumed by the Power
Seller due to the failure to implement relevant State provisions and standards, etc.,
which results in the enlargement of the scope of accidents.
	 
	1.1.5	 	“Metering Point” refers to the points on which the electric energy
metering devices are installed as indicated on Appendix II hereto. Metering points are
generally located at the division point of property of both Parties. In the event that
the electric energy metering devices cannot be installed at the division point of
property of both Parties, then the installation point shall be




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	 	 	determined by both Parties through consultation.
	 
	1.1.6	 	“Grid Connection” refers to the transmission of the power generated by
the Power Seller to the Power Purchaser’s grid.
	 
	1.1.7	 	“Method of Grid Connection” refers to the method for the connection
between the Power Plant of the Power Seller and the grid of the Power Purchaser.
	 
	1.1.8	 	“Division Point of Property” refers to the division point of the assets
of the Power Seller and the assets of the Power Purchaser.
	 
	1.1.9	 	“Regulations” refers to all laws, administrative regulations, rules,
provisions, policies, decrees, orders, instructions, notices, requirements,
interpretations, etc. promulgated by the State, government and government departments.
	 
	1.1.10	 	“On-grid Output” refers to the electricity output transmitted to the Power
Purchaser’s grid by the Power Plant of the Power Seller.
	 
	1.1.11	 	“Grid Supply Output” refers to the electricity output transmitted to the Power
Plant of the Power Seller from the grid of the Power Purchaser.
	 
	1.1.12	 	“CT” refers to current transformer.
	 
	1.1.13	 	“PT” refers to potential transformer.
	 
	1.1.14	 	“Power Factor” refers to the factor of power.
	 
	 	 	“Average Monthly Power Factor” refers to the monthly average of the factor of
power, which may be calculated in accordance with the following formula:
	 
	 	 	Average Monthly Power Factor =active component of current month/
	 
	 	 	
	 
	1.1.15	 	“On-grid Tariff” refers to the tariff executed for the purchase of power by
the Power Purchaser from the Power Seller.
	 
	1.1.16	 	“Grid Supply Tariff” refers to the tariff executed for the purchase of power
by the Power Seller from the Power Purchaser.
	 
	1.1.17	 	“On-grid Electricity Fees” refers to the fees paid to the Power Seller for the
purchase of On-grid Output by the Power Purchaser.




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	1.1.18	 	“Grid Supply Electricity Fees” refers to the fees paid to the Power Purchaser
for the purchase of Grid Supply Output by the Power Seller.
	 
	1.1.19	 	“Peak Period” refers to 8:00 to 22:00
	 
	 	 	“Valley Period” refers to 22:00 to 8:00 of the next day
	 
	1.1.20	 	“Force Majeure” refers to the objective events which cannot be predicted,
avoided or overcome, including eruption of volcano, tornado, tsunami, snowstorm,
mudslide, landslide, flood, fire, failure of water to reach the designed standard,
earthquake, typhoon, thunder and lightening and fog flash beyond the designed standard,
nuclear radiation, war, plague, turbulence etc.
	 
	1.2	 	Interpretation
	 
	1.2.1	 	This Agreement shall be binding on the legal successor or assignee of any Party,
unless otherwise agreed by the Parties. When the circumstance provided in this paragraph
occurs, relevant obligors shall perform necessary notification obligation and perfect
legal procedures in accordance with law.
	 
	1.2.2	 	Unless the context otherwise requires, the day, month and year referred to in
this Agreement shall refer to the day, month and year of the Gregorian calendar.
	 
	1.2.3	 	The word “include” in this Agreement refers to including without limitation.
	 
	2.	 	 Obligations of both Parties
	 
	2.1	 	The obligations of the Power Purchaser shall include the following:
	 
	2.1.1	 	To purchase the electricity generated by the Power Plant owned by the Power
Seller in accordance with the plan of generation output made by relevant governmental
authority.
	 
	2.1.2	 	To comply with the Grid Connection and Dispatching Agreement entered into by and
between both Parties, operate and maintain relevant transmission and transformation
facilities in accordance with the standards of the State and power industry, and
maintain the safety, high grade and economic operation of power system.
	 
	2.1.3	 	To implement power dispatching and information disclosure publicly,




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	 	 	impartially
and fairly in accordance with relevant State provisions and to furnish relevant
information concerning electricity utilization load, reserve capacity, operational
status of transmission and transformation facilities, etc. so as to perform this
Agreement.
	 
	2.1.4	 	To provide the Power Seller with the power needed for the re-start of generator
units of the Power Plant in accordance with relevant State provisions or agreements of
both Parties.
	 
	2.1.5	 	To strictly execute the Administration Regulation on Grid Dispatching, the Rules
on the Power System Dispatching of Zhejiang Province, and administration systems of
power production and operation.
	 
	2.1.6	 	To comply with the unified administration of power grid and to execute the
Notice concerning Administration Regulations on the Operation of the Connection of Power
Plants of Zhejiang Province, Local Grids and Zhejiang Grid (Trial).
	 
	2.2	 	The obligations of the Power Seller shall include the following:
	 
	2.2.1	 	To sell the electricity which is in compliance with the standards of the State
and power industry to the Power Purchaser in accordance with this Agreement.
	 
	2.2.2	 	To observe the Grid Connection and Dispatching Agreement entered into by and
between both Parties, to follow the uniform power dispatching, and to strictly execute
the Administration Regulation on Grid Dispatching, the Rules on the Power System
Dispatching of Zhejiang Province, and administration systems of power production and
operation; to operate and maintain the Power Plant in accordance with the standards of
the State and power industry and dispatching rules so as to ensure the operational
capacity of generator units to reach the requirements of technical standards and rules
issued by relevant government departments of the State, and maintain the safe, high
quality and economic operation of power system.
	 
	2.2.3	 	To provide the Power Purchaser with production report forms, reliability index
of generator units of the Power Plant and the operational status of the facilities every
month.
	 
	2.2.4	 	To disburse reasonable cost incurred by the Power Purchaser for the provision of
auxiliary service with consideration as required in accordance with relevant State
provisions.
	 
	2.2.5	 	Not to carry out power supply business directly with the customers.




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	2.2.6	 	To install electric power load control device and information collection device
of the Power Plant in accordance with the State provisions, to be responsible for the
protection and monitoring of the normal operation of the devices mentioned above; and in
case of abnormity, to notify the Power Purchaser in a timely fashion. In the event that
the aforesaid devices are damaged due to the Power Seller’s Cause, the Power Seller
shall be liable for compensation. The Power Purchaser shall be responsible for the
maintenance and management of the electric energy metering device, electric power load
control device and information collection device of the Power Plant which have been
installed.
	 
	2.2.7	 	To strictly execute the active curve, voltage curve and power factor curve
ordered by the Power Purchaser for grid connection.
	 
	2.2.8	 	To formulate the on-site operational manuals and security measures for the safe
operation of the Power Plant which shall be filed with the Power Purchaser for record
and which shall not be in conflict with the aforesaid provisions and the terms of this
Agreement.
	 
	3.	 	 Method and Capacity of Grid Connection
	 
	3.1	 	Method of Grid Connection: the grid connection voltage level of the Power Seller is 110 kv.
The power generated by Party B can be connected to 110 kv Yunhe Substation for Grid Connection
through 110kv Shahe 1067 Line.
	 
	3.2	 	Capacity of Grid Connection: 25,000kw, including two generator units with a unit capacity of
12,500kw.
	 
	4.	 	 Division of Property and Maintenance & Management
	 
	4.1	 	The Division Point of Property shall be set at the connection point of the down lead of No.1
standard bar at the interval line of 110kv Shahe 1067 Line outside of the wall of 110 kv Yunhe
Substation.
	 
	4.2	 	Scope for the liability of maintenance and management of the facilities: Party A shall be
responsible for the section beside the substation where the Division Point of Property is
located and Party B shall be responsible for the rest.
	 
	5.	 	 Metering of Electric Power




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	5.1	 	The Metering Point of On-grid Output and Grid Supply Output of the Power Plant shall be set
at the following point:






	 	(1)	 	the interval of 110 kv Yunhe Substation 110kv Shahe 1067 Line, the no-load voltage
ratio of CT shall be 600/5=120, the comprehensive no-load voltage
ratio=120×1,100=132,000;
	 
	 	(2)	 	the interval of the Step-up Substation of Shapulong Power Plant 110 kv Jinsha 1090
Line, the no-load voltage ratio of CT shall be 400/5=80, the comprehensive no-load
voltage ratio=80×1,100=88,000;
	 
	 	(3)	 	the interval of the Step-up Substation of Shapulong Power Plant 10 kv Yuesha 101
Line, the no-load voltage ratio of CT shall be 100/5=20, the comprehensive no-load
voltage ratio=20×100=2,000;
	 
	 	(4)	 	according to the agreement entered into between Party B and Jinkengkou Power Plant,
the metering electricity output of the interval of Jinsha 1090 Line needs to assume 1.1%
line loss of Shahe 1067 Line;
	 
	 	(5)	 	according to the agreement entered into between Party B and Yuewan Power Plant, the
metering electricity output of the interval of Yuesha 101 Line needs to assume the line
loss of Shahe 1067 Line and loss of step-up substation, namely, 1.5% in aggregate.






	5.2	 	The electric energy metering devices shall include kilowatt-hour meter, potential voltage
transformer for metering, current transformer, secondary circuit and electric energy metering
tank/case, etc. The metering checking department of the Power Purchaser (the metering
institute authorized by the State) shall be responsible for the checking, installation,
replacement and sealing of the electric energy metering devices and both Parties may supervise
it on the spot. The Power Seller may, when necessary, install self-equipped electric energy
metering devices on the non-metering points so as to verify the accuracy of the metering
devices of the Power Purchaser, (provided that the quality of such devices shall be subject to
the examination of the legal or authorized metering checking institute of the State). In case
of any default to the metering devices of the Power Purchaser, the data on the metering
devices of the Power Seller may be used for reference.
	 
	5.3	 	The Power Purchaser shall enseal the kilowatt-hour meter, the front and back door of the
electric energy metering screen (tank/case) (including marshal panel and rosette of CT circuit
terminal), PT terminal tank (including PT metering
circuit fuse) and the knife of differential pressure transmitter, all of which shall not be
unsealed by the Power Seller without permission except under emergency circumstances. In the
event that the Power Seller must unseal such devices mentioned above under emergency
circumstances, it shall report to the Power 




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	 	 	Purchaser within twelve (12) hours after the
unsealing and provide the Power Purchaser with relevant evidential documents or records
regarding the occurrence of the emergency.
	 
	5.4	 	Treatment of metering abnormality. In the event that any Party finds any abnormality or
default to the electric energy metering devices which affects the metering of electric energy,
such Party shall notify the other Party and the metering examination institute recognized by
both Parities immediately so as to jointly find out the problems and to restore the normal
metering as soon as possible.
	 
	 	 	Under normal circumstances, the settlement electricity output shall be determined based on the
data indicated on the main meter of trade settlement metering point. In the event that the
main meter appears abnormal, then the data indicated on the sub-meter shall prevail. In the
event that both the main meter and sub-meter of trade settlement metering point appear
abnormal, the data indicated on the main meter of the counterparty shall prevail. In case that
the main meter of the counterparty appears abnormal, then the data indicated on the sub-meter
of the counterparty shall prevail. As for other abnormal circumstances, on the basis of fully
consultations between both Parties, the electricity output within the abnormal period shall be
determined in accordance with the information provided by the no-voltage records and
no-voltage time metering devices, etc.
	 
	6.	 	 Purchase and Sale of Electricity Output
	 
	6.1	 	Purchase and sale of On-grid Output
	 
	6.2	 	The Power Purchaser shall approve the On-grid Output plan of the Power Seller within
different period of time each month in accordance with the requirements of safe operation of
the grid. The Power Seller shall strictly generate power in accordance with the On-grid Output
plan index approved by the Power Purchaser.
	 
	6.3	 	On-site excerption date of the settlement electricity output. Prior to the startup operation
of distant terminal of electric energy output of the Power Purchaser, the recorded data shall
be the data at 24:00 indicated in the clause (3) by using the frozen function of the
kilowatt-hour meter and shall be written down on the spot the next day as agreed by the staff
of both Parties.
	 
	6.4	 	In the event that the On-grid Output exceeds the index of the monthly plan
arranged by the Power Purchaser due to the Power Seller’s Cause, the Power Purchaser will not
purchase the portion of the On-grid Output exceeding 3‰ of the planned index; in the event
that the On-grid Output exceeds the index of the monthly plan arranged by the Power Purchaser
due to the Power Purchaser’s






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	 	 	Cause, the Power Purchaser shall purchase the exceeding portion. However, the total On-grid
Output of the year of the Power Seller shall not exceed the planned index arranged by the
Power Purchaser.
	 
	6.5	 	In the event that the On-grid Output is below the index of the monthly plan due to the Power
Purchaser’s Cause, as for the difference between the On-grid Output and the index of the
monthly plan, the Power Purchaser agrees to transfer such difference for the usage of next
month. In the event that the On-grid Output is below the index of the monthly plan arranged by
the Power Purchaser due to the Power Seller’s Cause, such difference of current month shall be
cancelled.
	 
	6.6	 	The Power Seller shall generate power in strict compliance with the active curve, and power
factor curve of daily power generation instructed by the Power Purchaser and transmit the
qualified on-grid electric power to the Power Purchaser. The permitted deviation of power
generation active curve is ±3% and the Power Purchaser will not pay fees for the portion
above 3% of the power generation active curve, and deduct the deficiency electricity portion
below 3% of the power generation active curve correspondingly from the index of current month
electricity.
	 
	 	 	The permitted deviation of power factor curve is ±0.01 and the active electricity output
generated during the period over the permitted deviation shall be calculated on 0.8 times.
	 
	 	 	In the event that the operation of the Power Seller is over the ±3% of active curve and
±0.01 of power factor curve in accordance with the requirements of the Power Purchaser, then
the On-grid Output shall be settled in accordance with the actual output.
	 
	6.7	 	The Power Purchaser will purchase the electricity from the Power Seller on the principle of
competitive bidding for grid connection when the timing is ripe.
	 
	7. 	 	 Tariff, Electricity Fees and Settlement
	 
	7.1	 	Both the Power Purchaser and the Power Seller shall strictly execute the tariff approved by
the price regulatory authority.
	 
	7.2	 	The peak On-grid Tariff for the power transmitted from the Power Seller to the Power
Purchaser shall be RMB 0.535/kwh and the valley On-grid Tariff shall be RMB 0.268/kwh. The
power transmitted from Power Purchaser to the Power Seller shall execute the uniform
non-industrial tariff of Zhejiang Province.
	 
	7.3	 	In the event that the tariff is adjusted during the valid period of this Agreement,




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	 	 	then the adjusted tariff shall apply.
	 
	7.4	 	The aforesaid tariff shall include taxes.
	 
	7.5	 	The Power Purchaser shall issue the clearance list of the previous month prior to the
10th of each month and the Power Seller shall issue invoice to the Power Purchaser
at the same time and settle the electricity fees with the Power Purchaser on the third month.
The payment shall be delayed accordingly upon statutory holiday and vacation.
	 
	7.6	 	As for the Grid Supply Electricity Fees transmitted from the Power Purchaser to the Power
Seller, the Power Purchaser shall issue electricity fee invoice to the Power Seller prior to
the 10th of the next month and the Power Seller shall pay off such fees prior to
the 10th of each month. The payment shall be delayed accordingly upon statutory
holiday and vacation.
	 
	7.7	 	The Grid Supply Electricity Fees transmitted from the Power Purchaser to the Power Seller
shall be calculated in accordance with the following formula:
	 
	 	 	The Grid Supply Electricity Fees= Grid Supply Electric Energy Fee (1±Adjusted Value of Power
Factor)
	 
	 	 	Among which, Grid Supply Electric Energy Fee= Grid Supply
Output × Grid Supply Tariff
	 
	 	 	Grid Supply Output= Degree of Kilowatt-hour Meter of Active Output Transmitted from 110 kv
Yunhe Substation Shahe 1067 × 132,000 — Degree of Kilowatt-hour Meter of Active Output
Transmitted from Shapulong Power Plant 110 kv Jinsha 1090 Line × 88,000/(1—1.1%)— Degree of
Kilowatt-hour Meter of Active Output Transmitted from Shapulong Power Plant 10 kv Yuesha 101
Line × 2,000/(1—1.5%)
	 
	7.8	 	The On-grid Electricity Fees shall be calculated in accordance with the following formula
when all indexes are in compliance:
	 
	 	 	On-grid Electricity Fees= On-grid Peak Output × Peak Tariff + On-grid Valley Output × Valley
Tariff
	 
	 	 	Among which, On-grid Peak Output= Peak Degree of Kilowatt-hour Meter of Active Output
Transmitted to 110 kv Yunhe Substation Shahe 1067 × 132,000 — Peak Degree of Kilowatt-hour
Meter of Active Output Transmitted to Shapulong Power Plant 110 kv Jinsha 1090
Line × 88,000 × (1—1.1%)— Peak Degree of Kilowatt-hour Meter of Active Output Transmitted to
Shapulong Power Plant 10 kv Yuesha 101 Line × 2,000 × (1—1.5%);




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	 	 	On-grid Valley Output= Valley Degree of Kilowatt-hour Meter of Active Output Transmitted to
110 kv Yunhe Substation Shahe 1067 × 132,000 — Valley Degree of Kilowatt-hour Meter of Active
Output Transmitted to Shapulong Power Plant 110 kv Jinsha 1090 Line × 88,000 × (1—1.1%)—
Valley Degree of Kilowatt-hour Meter of Active Output Transmitted to Shapulong Power Plant 10
kv Yuesha 101 Line × 2000 × (1—1.5%)
	 
	7.9	 	In the event that both Parties cannot reach agreement on the metering of electric energy or
electricity fees, both Parties shall firstly pay off electricity fees on the basis of
settlement list (invoice), thereafter, both Parties shall negotiate on the refund or further
payment of electricity fees in accordance with the provisions of Regulations regarding
electric power and metering.
	 
	 	 	Both Parties agree to keep original materials and records respectively for the examination of
statements and records or double-check of the accuracy of the calculation within the
reasonable scope in accordance with this Agreement.
	 
	8. 	 	Force Majeure
	 
	8.1	 	Both Parties affected by the Force Majeure shall take reasonable measures so as to mitigate
the losses incurred by one Party or both Parties due to the Force Majeure. Both Parties shall
consult, formulate and carry out the remedies and reasonable replacement measures in a timely
fashion so as to mitigate or eliminate the impact caused by the Force Majeure.
	 
	 	 	In the event that the Party affected by the Force Majeure fails to make efforts to take
reasonable measures to mitigate the impact caused by the Force Majeure, then such Party shall
be liable for the expanded losses caused by such failure.
	 
	8.2	 	In the event that the Force Majeure impedes any Party to fulfill its obligations over thirty
(30) days, both Parties shall negotiate and determine whether to continue to perform this
Agreement or to terminate this Agreement. In the event that both Parties fail to reach
agreement on the conditions for the continued performance of this Agreement or the termination
of this Agreement sixty (60) days after the occurrence of the Force Majeure, then any Party
shall have the right to notify the other Party to rescind this Agreement, unless otherwise
provided herein.
	 
	8.3	 	In the event that the Power Seller or Power Purchaser is unable to fulfill its obligations of
the sale or purchase of power under this Agreement due to governmental acts, change of law, or
substantial change of power market, then both Parties shall, on the principle of fairness and
reasonableness, consult with




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	 	 	each other to resolve it as soon as possible, or make proper amendments to this Agreement if
necessary.
	 
	8.4	 	In the event that the occurrence of the Force Majeure impedes any Party to fulfill its
obligations under this Agreement, then such Party may suspend its performance under the
following circumstances:






	 	8.4.1	 	the scale and time of the suspension of performance does not exceed the scale and
time affected by the Force Majeure.
	 
	 	8.4.2	 	the Party affected by the Force Majeure continues to perform its other obligations
which are not affected by the Force Majeure.






	8.5	 	In the event that any Party is unable to fulfill its obligations under this Agreement due to
the Force Majeure, such Party shall immediately notify the other Party. The aforesaid notice
shall describe the nature of the Force Majeure event, the estimated enduring period, and the
actions already taken by the affecting Party for the mitigation of impact.
	 
	9. 	 	Liability for Breach of Contract and Compensation
	 
	9.1	 	In case of breach of contract, the breaching Party shall assume liabilities in accordance
with relevant provisions of the Contract Law of the PRC, the Electric Power Law of the PRC,
the Regulation on the Supply and Use of Power, the Administration Regulation on Grid
Dispatching, the Rules on the Operation of Power Supply, and other relevant laws and
regulations concerning electric power. The breaching Party shall also be liable for the losses
incurred by the other Party.
	 
	9.2	 	With respect to the dispatching contact, both Parties shall enter into a separate dispatching
agreement. In case that the Power Seller does not follow the dispatching instruction by the
Power Purchaser, the Power Purchaser shall have the right to restrict the on-grid load of the
Power Seller, or even to pull brake for disconnection. All consequences thereof shall be
assumed by the Power Seller itself.
	 
	9.3	 	In the event that the Power Seller violates Article 5.3 of this Agreement and unseals the
seal privately, unseals privately the electric power load control device and power plant
information collection device, disconnecting the work power, or take other actions which make
the devices function abnormally, in accordance with Article 100 of the Rules on the Operation
of Power Supply, the Power Seller shall pay RMB5,000 each time to the Power Purchaser as
electricity fees for defaulting usage.




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	9.4	 	In the event that the Power Seller supplies or resupplies in private the power to the power
equipments which have nothing do with the power use of the Power Plant, or introduce other
power source in private, then the Power Seller shall be ordered to remove the connection line,
deliver written statement, and pay RMB500 per kilowatt (kilovar) to the Power Purchaser as
electricity fees for defaulting usage in accordance with the capacity supplied, resupplied or
introduced.
	 
	9.5	 	The Power Seller shall assume full liability if any accident occurs to the system of the
Power Purchaser due to the Power Seller’s Cause.
	 
	9.6	 	If any Party incurs any loss due to any of the following events, the other Party shall not
assume any liability:






	 	(1)	 	Force Majeure;
	 
	 	(2)	 	Any Party’s own fault;
	 
	 	(3)	 	Any third party’s fault.






	10.	 	 Dispute Resolution
	 
	 	 	In case of any dispute arising out of the performance of this Agreement, both Parties shall
resolve it through consultation in accordance with the principles of this Agreement. In the
event that such dispute cannot be resolved through consultation, then both Parties may jointly
apply to the electric regulatory agency for mediation. In case that such dispute cannot be
resolved by mediation, then any Party may bring lawsuit to the people’s court of the signing
place of this Agreement.
	 
	11. 	 	Miscellaneous
	 
	11.1	 	This Agreement shall come into effect after having been signed and sealed by both
Parties. In the event that any Party proposes to amend this Agreement after the
effectiveness of this Agreement, such amendment shall be done in written form and subject
to the agreement reached by both Parties through consultation. In case of changes of
national policies, both Parties shall amend or supplement this Agreement in accordance with
the adjusted policies. The amended or supplementary agreement shall have the same legal
effect as this Agreement.
	 
	11.2	 	Any Party shall not transfer its rights or obligations under this Agreement




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	 	 	without the prior written consent of the other Party.
	 
	11.3	 	In the event that any Party fails to perform its obligations within the agreed time
limit, then the other Party shall have the right to notify such Party in writing to rescind
this Agreement.
	 
	11.4	 	The valid term of this Agreement shall be three (3) years, commencing from October 1,
2008 to September 30, 2011.
	 
	11.5	 	This Agreement shall be signed in two (2) originals and each Party shall hold one (1).
This Agreement shall also be signed in four (4) duplicates and each Party shall hold two
(2). The duplicates shall have the same legal effect as the originals.




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	The Power Purchaser:	 	Lishui Power Industry Bureau


(seal)





Address: No.699, Zhongdong Road, Lishui City




Legal Representative: Du Xiaoping




(Authorized Representative)





			
	The Power Seller:	 	Yunhe County Shapulong Hydropower Generation Co.,

Ltd. (Shapulong Power Plant)


(seal)





Address: No.42, Xinhua Street, Yunhe County




Legal Representative: John D. Kuhns




(Authorized Representative)




October 2008





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