Document:

exhibit1012.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Emission Reduction Purchase Agreement                                                                                                                        Page 1 of 17

Exhibit 10.12

EMISSION REDUCTION PURCHASE AGREEMENT(ERPA)

[Chinese translation](ERPA)

XISC Power Generation Using Waste Heat

from Sintering System (WHR)

[Chinese translation]

Between

(the "Purchaser")[Chinese translation]

ECOLOCAP SOLUTIONS (CANADA) INC (ECOLOCAP)

740 St Maurice suite 102 

Montreal, Qc H3C1L5 

Canada Tel: 5148763907 

Fax: 5148764080 

Email: trivutruong2004@yahoo.ca 

President-CEO: Dr. Tri Vu Truong

(the " Seller"), henceforth “PROJECT PROPONENT” [Chinese translation] 

Owner: Xiangtan Iron and Steel Group Co., Ltd (“XISC”) [Chinese translation]

Address: Yuetang, Xiangtan City, Hunan, 411101, P. R. China [Chinese translation]- 

Telephone: 8653018, 13707328182 

Fax : 0732-8628978 

Email: sheny3018@sohu.com 

General Director: Liu, Jie [Chinese translation]

 

XISC Power Generation Using Waste Heat from Sintering System (WHR) [Chinese translation]

Emission Reduction Purchase Agreement                                                                                Page 2 of 17

Interpretation and Definitions [Chinese translation]

In this Agreement, unless otherwise required by the context, all capitalized terms shall have the meaning set forth in the definitions below.

[Chinese translation]:

	Agreement

[Chinese translation]  	Means this Emission Reduction Purchase Agreement (ERPA).

[Chinese translation]  

	Annex B Countries

[Chinese translation]  	Means the countries listed in Annex B to the Kyoto Protocol having

committed themselves to reduce or limit their GHG emissions.

[Chinese translation]  

	Annex I Countries

[Chinese translation]  	Means the parties to the UNFCCC listed in Annex I thereto (Annex I

consists of industrial countries and countries in transition).

[Chinese translation]  

	
Baseline/

[Chinese translation]

	Means the scenario that reasonably represents the anthropogenic

emissions of GHG that would occur in the Host Country in the absence of

the Project, determined in accordance with the Kyoto Rules.

[Chinese translation]  

	Business Day

[Chinese translation]  	Means a day on which banks are open for general business in China.

[Chinese translation]  

	Carbon Dioxide

Equivalent

[Chinese translation]  	Means a metric measure used to compare the emissions of various GHG

based upon their global warming potential.

[Chinese translation]  

	Certification

[Chinese translation]	Means the written confirmation by an Operational Entity of an Emission

Reduction resulting from a CDM project and having passed the

Verification procedure according to the Kyoto Rules.

[Chinese translation]  

	Certified Emission

Reduction (CER)

[Chinese translation]	Means a unit of Emission Reduction issued pursuant to Article 12 of the

Kyoto Protocol and the requirements of the Kyoto Rules (including

Certification), equal to one metric ton of Carbon Dioxide Equivalent

resulting from a CDM project.

[Chinese translation]  

XISC Power Generation Using Waste Heat from Sintering System (WHR) [Chinese translation]

Emission Reduction Purchase Agreement                                                                                               Page 3 of 17

	Clean Development

Mechanism (CDM)

[Chinese translation]	Means the flexible mechanism established by Article 12 of the Kyoto

Protocol providing for Annex I Countries to implement projects that

reduce emissions in non-Annex I Countries in return for CERs and assist

the non-Annex I Countries in achieving sustainable development and

contributing to the ultimate objective of the UNFCCC.

[Chinese translation]  

	Crediting Period

[Chinese translation]	If Kyoto Protocol ceases to have effect or is terminated before the

expiration of any crediting period, the purchasing agreement will remain

valid for purchasing obligations prior to this termination date, however

purchasing obligations beyond this termination date will automatically

cease.

[Chinese translation]  

	Emission Reduction

[Chinese translation]  	Means reduction in emission of GHG achieved, calculated in accordance

with the Kyoto Rules.

[Chinese translation]  

	Executive Board

[Chinese translation]	Means the international authority elected by the representatives of the

parties to the Kyoto Protocol responsible for monitoring the CDM

process.

[Chinese translation]  

	First Commitment

Period

[Chinese translation]  	Means July 14, 2008 until December 31, 2012.

[Chinese translation]

	Force Majeure

[Chinese translation]	Means any circumstance or condition beyond the control of either party to

this Agreement affecting the performance of its obligations under this

Agreement including in particular wars, insurrection, natural disaster or

equivalent circumstances.

[Chinese translation]  

	Greenhouse Gases

(GHG)

[Chinese translation]  	Means the six gases listed in Annex A to the Kyoto Protocol.

[Chinese translation]

	Host Country

[Chinese translation]  	China [Chinese translation]

	Kyoto Protocol

[Chinese translation]  	Means the protocol to the UNFCCC adopted at the third conference of the

parties to the UNFCCC in Kyoto, Japan, on December 11, 1997.

[Chinese translation]  

XISC Power Generation Using Waste Heat from Sintering System (WHR) [Chinese translation]

Emission Reduction Purchase Agreement                                                                                      Page 4 of 17

	Kyoto Rules

[Chinese translation]	Means the UNFCCC, Kyoto Protocol, the Bonn agreement, the

Marrakech Accords, any relevant decisions, guidelines, modalities and

procedures made pursuant to them and/or any succeeding international

agreements as amended and/or supplemented from time to time and which

include those rules specifically required to be met for the issuing and

transfer of CERs. /UNFCCC

[Chinese translation]  

	Letter of Approval

(LOA) [Chinese

translation]  	Means a binding approval of the Project by the DNA of the Host Country

together with an approval of the transfer of CERs.

[Chinese translation]  

	Monitoring Report

[Chinese translation]	Means an annual report to be provided by Owner setting out the total

number of Emission Reductions generated by the Project during the

previous year according to the Kyoto Rules, international Monitoring

rules and the PDD.

[Chinese translation]  

	Monitoring

[Chinese translation]	Means the collection and record of data allowing the assessment of

reductions in GHG emissions resulting from the Project conducted in

accordance with the Kyoto Rules.

[Chinese translation]  

	Designated

Operational

Entity(DOE)

[Chinese translation]  	Means an independent entity accredited by the Executive Board being the

executive body for CDM and inter alias responsible for determining

whether a project and the resulting Emission Reductions meet the

requirements of Article 12 of the Kyoto Protocol.

[Chinese translation]  

	Project Design

Document (PDD)

[Chinese translation]  	Means a detailed description of the Project to be submitted for Validation

attached here in Annex []. The Purchaser will be responsible for providing

PDD development for Registration of the Project.

[Chinese translation]  

	Project

[Chinese translation]	Means the proposed CDM project described in the PDD and other

documents describing the implementation and economics of the Project

attached in Annex []

[Chinese translation]  

XISC Power Generation Using Waste Heat from Sintering System (WHR) [Chinese translation]

Emission Reduction Purchase Agreement                                                                                                   Page 5 of 17

	Registration

[Chinese translation]  	Means the official registration of a CDM project by the Executive Board

according to the Kyoto Rules.

[Chinese translation]  

	UNFCCC	Means the United Nations Framework Convention on Climate Change

adopted in New York on May 9, 1992.

[Chinese translation]  

	Unit Price

[Chinese translation]	Means the price payable by Purchaser to Project Proponent per Certified

Emission Reduction (CER) unit:

[Chinese translation]:

The purchase unit price paid by EcoloCap Solutions Canada Inc to

Chinese Project Proponent for the CER is fixed at (9.6)Euro for the year

2009 to 2012; both parties will renegotiate the ERPA for the extension

period (2013-2026).

[Chinese translation]

The amount paid to the Chinese Project Proponent for the total certified

CER generated from this project is fixed at (80)% of the total value of

CER at this above mentioned purchase price ((9.6)Euro) “Total revenues”

is defined as the amount of: (9.6)Euro x total CER. Ecolocap Solutions

Canada Inc. will get (20)% of the total revenues.

[Chinese translation]

TERM: [Chinese translation]

Project proponent agrees by this ERPA to sell CERs generated by the

project to the Purchaser for the year 2009 to 2012 and give the Purchaser

the right of first refusal to renegotiate the ERPA for the extension period

2013-2026

[Chinese translation]  

	Validation

[Chinese translation]  	Means the assessment of the PDD, including the Baseline, by an

Operational Entity, determining its compliance with the Kyoto Rules.

[Chinese translation]  

XISC Power Generation Using Waste Heat from Sintering System (WHR) [Chinese translation]

Emission Reduction Purchase Agreement                                                                                                                              Page 6 of 17

	Verification

[Chinese translation]	Means the periodic independent review and ex post determination of the

monitored reductions in GHG emissions that the Project has achieved

during a specified period of time by an Operational Entity in accordance

with the Kyoto Rules. The project's owner will be Responsible for

providing periodical monitoring.

[Chinese translation]  

	  
	  
	Unless otherwise specified, references to clauses are to clauses of this Agreement, references to legal  
	provisions are references to such provisions as in effect from time to time, use of a gender includes any  
	gender and use of the plural includes the singular and vice versa where the context requires.  
	[Chinese translation]
	    
	All headings and titles are inserted for convenience only and shall not be deemed part of this  
	Agreement or taken into consideration in its interpretation.  
	[Chinese translation]
	    
	    
	1. 	  	Preamble [Chinese translation]  
	   
	  	  	The Project is located on the territory of the Host Country.  
	  	  	[Chinese translation]  
	   
	2. 	  	Contractual Obligations [Chinese translation]  
	   
	2.1. 	  	Certified Emission Reductions [Chinese translation]  
	   
	2.1.1. 	  	The Purchaser will purchase the total certified emission reduction, the number of which is  
	  	  	monitored and accepted by the DOE.  
	  	  	[Chinese translation]  
	   
	2.1.2. 	  	If the Project generates CERs, during the crediting period Project Proponent shall, to the extent  
	  	  	it is legally possible and permissible, exclusively transfer or cause to be transferred to  
	  	  	Purchaser all rights (and, to the extent legally possible and permissible, legal title) which  
	  	  	Project Proponent may have in the Anticipated Emission Reductions generated during the  
	  	  	Crediting Period to Purchaser.  
	  	  	[Chinese translation]  
	   
	2.1.3. 	  	Purchaser shall pay to Project Proponent the Unit Price for each Certified Emission Reduction  
	  	  	generated by the Project and in which the Project Proponent's rights are transferred to  
	  	  	Purchaser in accordance with clause 3 below.  
	  	  	[Chinese translation]  

XISC Power Generation Using Waste Heat from Sintering System (WHR) [Chinese translation]

Emission Reduction Purchase Agreement                                                                                                   Page 7 of 17

	2.2. 	  	Emission Reductions generated after the Crediting Period [Chinese translation]  
	  
	  	  	If the Project generates any Certified Emission Reductions after the Crediting Period,  
	  	  	Purchaser shall enter into negotiations with Project Proponent with a view to concluding an  
	  	  	agreement on the purchase of such Certified Emission Reductions based on the principles of  
	  	  	this Agreement but amended in order to reflect the international and/or national rules then  
	  	  	applicable.  
	  	  	[Chinese translation]  
	  
	3. 	  	Transfer [Chinese translation]  
	  
	  	  	Transfer to Purchaser of all the rights (and, to the extent legally possible and permissible,  
	  	  	legal title) which Project Proponent may have in a Certified Emission Reduction shall have  
	  	  	occurred upon the transfer of a CER from the register of the Executive Board to a register in  
	  	  	favor of Purchaser or such other account or register Purchaser has notified to Project  
	  	  	Proponent in writing.  
	  	  	[Chinese translation]  
	  
	4. 	  	Payment [Chinese translation]  
	  
	4.1. 	  	Payment for Certified Emission Reductions [Chinese translation]  
	  
	4.1.1. 	  	Payment by Purchaser to Project Proponent for the Certified Emission Reductions (the rights  
	  	  	in which are transferred pursuant to clause 3) shall be deposited in the project proponent’s  
	  	  	account within 60 Business Days after the CERs are delivered  
	  	  	[Chinese translation]  
	  
	4.1.2. 	  	All payments shall be made to the accounts specified from time to time be notified to the  
	  	  	other party in writing [Chinese translation]  
	  
	4.1.3. 	  	All payments shall be made in Euro. [Chinese translation]  
	  
	4.2. 	  	Costs and Expenses [Chinese translation]  
	  
	4.2.1. 	  	Subject to clause 4.2.2 below, all taxes, fees, costs or other expenses in connection with the  
	  	  	generation of CERs by the Project and their Registration and transfer (including VAT in any  
	  	  	jurisdiction Purchaser duly notifies Project Proponent to transfer CERs as in Clause 3, if  
	  	  	applicable) shall be borne by Project Proponent and purchaser.  
	  	  	[Chinese translation]  
	  
	4.2.2. 	  	The share of the proceeds from CERs generated by the Project to be used to cover  
	  	  	administrative expenses and to assist developing countries that are particularly vulnerable to  
	  	  	the adverse effects of climate change to meet the costs of adaptation according to the Kyoto  
	  	  	Rules shall be borne by the Purchaser.  
	  	  	[Chinese translation]  

XISC Power Generation Using Waste Heat from Sintering System (WHR) [Chinese translation]

Emission Reduction Purchase Agreement                                                                                                         Page 8 of 17

	  	  	Project proponent shall pay all costs and fees in connection with the project-relevant  
	  	  	documents preparation for use in the host country, the submission, approval, construction,  
	  	  	operation, maintenance and monitoring of the project activities taking place in the host  
	  	  	country, including but not limited to the tax, costs and expenses levied by Chinese National  
	  	  	Development and Reform Commission and other government authorities.  
	  	  	[Chinese translation]  
	  
	  	  	Purchaser shall pay all the costs and fees in connection with the CDM project development  
	  	  	abroad, including but not limited to the obtaining of any approvals from the Canada  
	  	  	government as required under the CDM rules, the preparation of PIN (project idea  
	  	  	note)/PDD(project design document), the validation, the verification/certification, and the  
	  	  	registration with CDM Executive Board.  
	  	  	[Chinese translation]  
	  
	4.2.3. 	  	All costs accrued to each of the Parties in negotiating, preparing, executing and carrying into  
	  	  	effect of this Agreement, shall be borne by each of the Parties themselves.  
	  	  	[Chinese translation]  
	  
	5. 	  	Termination and Remedies [Chinese translation]  
	  
	5.1. 	  	Either party (the "Non-defaulting Party") shall be entitled to terminate this Agreement by  
	  	  	written notice to the other party with immediate effect if any of the following events occurs:  
	  	  	[Chinese translation]  
	  
	5.1.1. 	  	In case the Project is not register as a valid CDM Project activity with the CDM EB within  
	  	  	eighteen (18) months upon execution of the ERPA, either party shall have the right to  
	  	  	terminate its rights and obligations under the ERPA.  
	  	  	[Chinese translation]  
	  
	5.1.2. 	  	In any given Contract Period, if the verification of the Project’s CERs is delayed by 90 days  
	  	  	or more due to the Project Proponent ’s or Purchaser’s fault and/or misconduct, each of the  
	  	  	non-defaulting parties shall have the right to terminate its rights and obligations under the  
	  	  	ERPA.  
	  	  	[Chinese translation]  
	  
	5.1.3. 	  	In case the project is not commissioned within eighteen (18) months following the date of the  
	  	  	ERPA, each Purchaser shall have the right to terminate its rights and obligations under the  
	  	  	ERPA.  
	  	  	[Chinese translation]  
	  
	5.1.4. 	  	Upon occurrence of an event of default or any other termination event in respect of the Project  
	  	  	Proponent or of Purchaser as provided in the ERPA, each of the non-defaulting parties shall  
	  	  	have the right to terminate its rights and obligations under the ERPA.  
	  	  	[Chinese translation]  

XISC Power Generation Using Waste Heat from Sintering System (WHR) [Chinese translation]

Emission Reduction Purchase Agreement                                                                                                       Page 9 of 17

	5.2 	  	Force Majeure [Chinese translation]  
	  
	  	  	Should either party be impeded wholly or in part from fulfilling any of its obligations under  
	  	  	the Agreement for reasons of Force Majeure, such obligation shall be suspended to the extent  
	  	  	and for as long as such obligation is affected by Force Majeure and the impeded party shall be  
	  	  	entitled to such extension of time as may be reasonably necessary.  
	  	  	[Chinese translation]  
	  
	  	  	Either party shall notify the other party of the existence and date of beginning of an event of  
	  	  	Force Majeure that is likely to impede its performance under the Agreement within 5  
	  	  	Business Days after having obtained knowledge of any such event. Either party shall likewise  
	  	  	advise the other of the date when such event ended and shall also specify the re-determined  
	  	  	time by which the performance of its obligations hereunder is to be completed.  
	  	  	[Chinese translation]  
	  
	  	  	Project Proponent and Purchaser shall consult with each other with a view of determining any  
	  	  	further appropriate action if a condition of Force Majeure is to continue after 20 Business  
	  	  	Days from the date of giving notice thereof.  
	  	  	[Chinese translation]  
	  
	  	  	Neither party shall be liable for damages or have the right to terminate this Agreement for any  
	  	  	delay in performing hereunder if such delay is caused by Force Majeure; provided, however,  
	  	  	that the non-impeded party shall be entitled to terminate such part of the Agreement that  
	  	  	remains unfulfilled, if the condition of Force Majeure is to continue after 6 months from the  
	  	  	date of giving notice thereof.  
	  	  	[Chinese translation]  
	  
	6. 	  	Change in Circumstances [Chinese translation]  
	  
	  	  	If any change in circumstances (i.e. a change of scientific basics or applicable standards  
	  	  	relating to the Baseline methodology and/or the applicable criteria for Verification and  
	  	  	Certification of the resulting Emission Reductions, or any changes related to  
	  	  	policy/regulations of the Chinese government) occurs which substantially affects the Project,  
	  	  	the parties to this Agreement shall enter into negotiations with a view to adapt the Project and  
	  	  	its implementation or any relevant provision of this Agreement, as may be necessary or  
	  	  	useful. A change in circumstances shall in no event be considered substantially affecting the  
	  	  	Project if at least 50% of the Anticipated Emission Reductions can be generated.  
	  	  	[Chinese translation]  
	  
	  	  	The parties to this Agreement shall cooperate and make their best efforts to enable the  
	  	  	continuation of the Project in accordance with the new circumstances and to achieve the  
	  	  	generation and transfer of the Anticipated Emission Reductions.  
	  	  	[Chinese translation]  
	  
	  	  	If any of the documents related to the Project and submitted at any time during the term of  
	  	  	this Agreement fails to be approved by such authority whose approval is required under the  

XISC Power Generation Using Waste Heat from Sintering System (WHR) [Chinese translation]

Emission Reduction Purchase Agreement                                                                                               Page 10 of 17

	  	  	Kyoto Rules or otherwise appears to be non-compliant with any relevant standards or  
	  	  	conditions of the Kyoto Rules, Project Proponent and Purchaser shall discuss whether or not  
	  	  	the relevant documents are to be revised and resubmitted.  
	  	  	[Chinese translation]  
	  
	7. 	  	Conditions Precedent [Chinese translation]  
	  
	  	  	This Agreement shall enter into force upon satisfaction of the following conditions precedent:  
	  	  	[Chinese translation]   
	  
	  	  	Conclusion of a binding agreement with the Host Country.  
	  	  	[Chinese translation]  
	  
	8. 	  	Miscellaneous [Chinese translation]  
	  
	8.1. 		Assignment and subcontracting [Chinese translation]  
	  	  	Project Proponent shall not, without the written consent of Purchaser, assign or transfer the  
	  	  	Agreement or the benefits or obligations thereof or any part thereof to any other person.  
	  	  	[Chinese translation]  
	  
	  	  	Purchaser may transfer any of its rights or obligations under the ERPA to any third party  
	  	  	(“assignee”) without consent of Project Proponent. However, rights and obligations between  
	  	  	Purchaser and Project Proponent remain the same after the transfer.  
	  	  	[Chinese translation]  
	  
	8.2. 	 	Confidentiality and Disclosure [Chinese translation]  
	  	  	The parties shall treat as confidential all information obtained as a result of entering into or  
	  	  	performing this Agreement which relates to the provisions of this Agreement, the negotiations  
	  	  	relating to this Agreement and the subject matter of this Agreement.  
	  	  	[Chinese translation]  
	  
	  	  	No party shall disclose any such confidential information to any third party, except in those  
	  	  	circumstances where disclosure is required in order to comply with any laws or regulations,  
	  	  	including without limitations the Kyoto Rules.  
	  	  	[Chinese translation]  
	  
	8.3. 	  	Notices [Chinese translation]  
	  
	  	  	Any communications to be made under or in connection with this Agreement shall be made in  
	  	  	writing (including by facsimile) to the address or facsimile number, from time to time  
	  	  	designated by the party to whom the communication is to be made to the other party for that  
	  	  	purpose. The address and facsimile number so designated are set out in Annex [] hereto.  
	  	  	[Chinese translation]  

XISC Power Generation Using Waste Heat from Sintering System (WHR) [Chinese translation]

Emission Reduction Purchase Agreement                                                                                                Page 11 of 17

	  	  	Communication will only be effected, if sent by mail, when delivered to or rejected by the  
	  	  	recipient, if sent by facsimile, when a transmission report shows that the facsimile has been  
	  	  	sent.  
	  	  	[Chinese translation]  
	  
	8.4. 	 	Entire Agreement [Chinese translation]  
	  
	  	  	This Agreement embodies the whole and only agreement of the parties with respect to the  
	  	  	subject matter hereof, and no prior or contemporaneous oral or written agreement or  
	  	  	understanding shall be deemed to constitute a part of this Agreement, unless expressly  
	  	  	referred to herein, or attached hereto, or specifically incorporated by reference herein. The  
	  	  	Annexes and schedules to this Agreement constitute integral parts of this Agreement and shall  
	  	  	therefore be deemed part of this Agreement.  
	  	  	[Chinese translation]  
	  
	8.5. 	  	Amendments [Chinese translation]  
	  
	  	  	This Agreement may only be amended with the written consent of the parties hereto.  
	  	  	[Chinese translation]  
	  
	8.6. 	  	Severability [Chinese translation]  
	  
	  	  	If any part or provision of the Agreement is or becomes illegal, void or unenforceable in any  
	  	  	respect, the remaining parts or provisions shall not be affected or impaired. Any deficiency in  
	  	  	the Agreement resulting there from shall be amended by way of interpretation of the  
	  	  	Agreement having due regard to the parties intent.  
	  	  	[Chinese translation]  
	  
	8.7. 	  	Governing law [Chinese translation]  
	  
	  	  	This Agreement shall be governed by the laws of P.R.C., but in the event that there is no  
	  	  	Chinese law governing a particular matter relating to this CONTRACT, reference shall be  
	  	  	made to general international commercial practice.  
	  	  	[Chinese translation]  
	  
	8.8. 	  	Jurisdiction [Chinese translation]  
	  
	  	  	If any disputes arise between the parties relating to or in connection with this Agreement, the  
	  	  	parties shall attempt at first instance to resolve such disputes through friendly discussion. If the  
	  	  	disputes cannot be resolved in this manner to the satisfaction of the parties within forty-five  
	  	  	(45) days after the date that any party has notified the other party in writing of such disputes,  
	  	  	the parties shall submit the disputes to arbitration by the China International Economic and  
	  	  	Trade Arbitration Commission. The arbitration awards shall be final and binding on the party,  
	  	  	and the party agrees to be bound thereby and shall act accordingly.  
	  	  	[Chinese translation]  

XISC Power Generation Using Waste Heat from Sintering System (WHR) [Chinese translation]

Emission Reduction Purchase Agreement                                                                                                   Page 12 of 17

The costs of arbitration will be borne by the losing party, unless otherwise determined by the arbitration award. 

During the process of arbitration, except the section over which the dispute arises between the parties, this CONTRACT 

shall be performed continuously.

[Chinese translation]

8.9. Counterparts [Chinese translation]

This Agreement shall be executed in four counterparts with two copies for Project Proponent and two for Purchaser. 

If there are any discrepancies between the English and the Chinese version, the Chinese version will prevail.

[Chinese translation]

	ANNEX I  	The salient features of XISC Coke Dry Quenching Project at Xiangtan, Hunan Province,  
	  	China.  
	  	[Chinese translation]  
	   
	ANNEX II  	Schedule for Project implementation  
	  	[Chinese translation]  
	   
	Annex III  	Work flow of CDM Activity  
	  	[Chinese translation]  
	   
	Annex [ ]  	Address designated  
	  	[Chinese translation]  

XISC Power Generation Using Waste Heat from Sintering System (WHR) [Chinese translation]

Emission Reduction Purchase Agreement                                                                                                 Page 13 of 17

PARTIES TO THE AGREEMENT [Chinese translation] 

WHEREOF the parties have agreed to the terms and conditions of this agreement as outlined above, this 

14th day of July, 2008, in the presence of: [Chinese translation]

	Purchaser: [Chinese translation]
	  
	ECOLOCAP SOLUTIONS (CANADA) INC
	(ECOLOCAP)
	
	    
	  	DR. TRI VU TRUONG  
	  	President-CEO: Dr. Tri Vu Truong  
	   
	   
	Project Proponent: [Chinese translation]
	  
	Xiangtan Iron and Steel Group Co., Ltd
	(“XISC”)/ [Chinese translation]
	    
	
	  	LIU, JIE  	  
	  	General Director: Liu, Jie [Chinese translation]  
	  	
	   
	   
	   
	   
	Witness No 1  	  	Witness No 2  
	[Chinese translation]  	  	[Chinese translation]  

XISC Power Generation Using Waste Heat from Sintering System (WHR) [Chinese translation]

Emission Reduction Purchase Agreement                                                                                                                      Page 14 of 17

ANNEX I The salient features of XISC Power Generation Using Waste Heat 

from Sintering System (WHR) at Xiangtan, Hunan Province, China.

[Chinese translation]

	No  	Parameters  	Units  	Value  
	1	[Chinese translation] Sinter 1x180m2	  [Chinese translation]	  1
	2  	[Chinese translation]  	Nm3/h  	306000  
	3  	[Chinese translation]  	[Chinese translation]  	250/380  
	4  	[Chinese translation]  	[Chinese translation]  	1  
	5  	[Chinese translation]  	[Chinese translation]  	1  
	6  	[Chinese translation]  	KW  	4500  
	7  	[Chinese translation]  	h/[Chinese translation]  	8000  
	8  	[Chinese translation]  	106kwh/[Chinese translation]  	35.12  
	9  	[Chinese translation]  	106kwh/[Chinese translation] 	29.5  
	10  	[Chinese translation]  	[Chinese translation]  	10325  
	11  	CO2[Chinese translation]  	[Chinese translation]  	27051.5  
	12  	[Chinese translation]  	[Chinese translation]  	10  
	13  	[Chinese translation]  	[Chinese translation]  	  
	14  	[Chinese translation]  	[Chinese translation]  	  
	15  	[Chinese translation]  	[Chinese translation]  	  
	16  	[Chinese translation]  	[Chinese translation]  	  
	17  	[Chinese translation]  	  	  
	18  	[Chinese translation]  	  	  
	19  	[Chinese translation]  	[Chinese translation]  	  
	20  	[Chinese translation]  	[Chinese translation]  	  

ANNEX II Schedule for Project implementation

[Chinese translation]

XISC Power Generation Using Waste Heat from Sintering System (WHR) [Chinese translation]

Emission Reduction Purchase Agreement                                                                              Page 15 of 17

Annex III Work flow of CDM Activity

[Chinese translation]

XISC Power Generation Using Waste Heat from Sintering System (WHR) [Chinese translation]

Emission Reduction Purchase Agreement                                                                                                                                          Page 16 of 17

Annex [ ] Address designated

[Chinese translation]

Purchaser: [Chinese translation]

ECOLOCAP SOLUTIONS (CANADA) INC (ECOLOCAP)

740 St Maurice suite 102

Montreal, Qc H3C1L5

Canada

Tel: 5148763907

Fax: 5148764080

Email: trivutruong2004@yahoo.ca

 

Project Proponent: [Chinese translation]

Xiangtan Iron and Steel Group Co., Ltd (“XISC”)/ [Chinese translation]

Address: Yuetang, Xiangtan City, Hunan, 411101, P. R. China [Chinese translation] 

Telephone: 0732- 8653018, 13707328182 

Fax : 0732-8628978 

Email: sheny3018@sohu.com

 

XISC Power Generation Using Waste Heat from Sintering System (WHR) [Chinese translation]exhibit1013.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Emission Reduction Purchase Agreement                                                                                                 Page 1 of 16

Exhibit 10.13

EMISSION REDUCTION PURCHASE AGREEMENT(ERPA)

[Chinese translation] (ERPA)

XISC Power Generation Using Steam from Coke Dry Quenching Project

[Chinese translation]

Between

(the "Purchaser") [Chinese translation]

ECOLOCAP SOLUTIONS (CANADA) INC (ECOLOCAP)

740 St Maurice suite 102

Montreal, Qc H3C1L5

Canada

Tel: 5148763907

Fax: 5148764080

Email: trivutruong2004@yahoo.ca

President-CEO: Dr. Tri Vu Truong

(the " Seller"), henceforth “PROJECT PROPONENT” [Chinese translation] 

Owner: Hunan Valin Xiangtan Iron & Steel Co., Ltd (“HVXISC”) 

[Chinese translation]

Address: Yuetang, Xiangtan City, Hunan, 411101, P. R. China [Chinese translation] 

Telephone: 0732- 0732- 8653018, 13707328182 

Fax : 0732-8628978 

Email: sheny3018@sohu.com 

General Director: Liu, Jie [Chinese translation]

HVXISC Power Generation Using Steam from Coke Dry Quenching Project [Chinese translation]

Emission Reduction Purchase Agreement                                                                                                    Page 2 of 16

	Interpretation and Definitions [Chinese translation]  
	    In this Agreement, unless otherwise required by the context, all capitalized terms shall have the  
	meaning set forth in the definitions below.  
	   [Chinese translation]: 
	  
	 Agreement

[Chinese translation]  	Means this Emission Reduction Purchase Agreement (ERPA).

[Chinese translation]  

	 Annex B Countries

[Chinese translation]

	Means the countries listed in Annex B to the Kyoto Protocol having

committed themselves to reduce or limit their GHG emissions.

[Chinese translation]  

	 Annex I Countries

[Chinese translation]

	Means the parties to the UNFCCC listed in Annex I thereto (Annex I

consists of industrial countries and countries in transition).

[Chinese translation]  

	
Baseline

Chinese translation]  

	Means the scenario that reasonably represents the anthropogenic

emissions of GHG that would occur in the Host Country in the absence of

the Project, determined in accordance with the Kyoto Rules.

[Chinese translation]  

	 Business Day

[Chinese translation]  	Means a day on which banks are open for general business in China.

[Chinese translation]  

	 Carbon Dioxide

Equivalent

[Chinese translation]  	Means a metric measure used to compare the emissions of various GHG

based upon their global warming potential.

[Chinese translation]  

	

Certification

[Chinese translation]

	Means the written confirmation by an Operational Entity of an Emission

Reduction resulting from a CDM project and having passed the

Verification procedure according to the Kyoto Rules.

[Chinese translation]  

	

Certified Emission

Reduction (CER)

[Chinese translation]

	Means a unit of Emission Reduction issued pursuant to Article 12 of the

Kyoto Protocol and the requirements of the Kyoto Rules (including

Certification), equal to one metric ton of Carbon Dioxide Equivalent

resulting from a CDM project.

[Chinese translation]  

	   
	 
	HVXISC Power Generation Using Steam from Coke Dry Quenching Project [Chinese translation]  

Emission Reduction Purchase Agreement                                                                                                   Page 3 of 16

	Clean Development

Mechanism (CDM)

[Chinese translation]	Means the flexible mechanism established by Article 12 of the Kyoto

Protocol providing for Annex I Countries to implement projects that

reduce emissions in non-Annex I Countries in return for CERs and assist

the non-Annex I Countries in achieving sustainable development and

contributing to the ultimate objective of the UNFCCC.

[Chinese translation]  

	Crediting Period

[Chinese translation]	If Kyoto Protocol ceases to have effect or is terminated before the

expiration of any crediting period, the purchasing agreement will remain

valid for purchasing obligations prior to this termination date, however

purchasing obligations beyond this termination date will automatically

cease.

[Chinese translation]  

	 Emission Reduction

[Chinese translation]	Means reduction in emission of GHG achieved, calculated in accordance

with the Kyoto Rules.

[Chinese translation]  

	Executive Board

[Chinese translation]	Means the international authority elected by the representatives of the

parties to the Kyoto Protocol responsible for monitoring the CDM

process.

[Chinese translation]  

	 First Commitment

Period

[Chinese translation]  	Means July 23, 2008 until December 31, 2012.

[Chinese translation]  

	Force Majeure

[Chinese translation]	Means any circumstance or condition beyond the control of either party to

this Agreement affecting the performance of its obligations under this

Agreement including in particular wars, insurrection, natural disaster or

equivalent circumstances.

[Chinese translation]  

	 Greenhouse Gases

(GHG)  [Chinese translation]  	Means the six gases listed in Annex A to the Kyoto Protocol.

[Chinese translation]  

	 Host Country

[Chinese translation]  	China [Chinese translation]

	 Kyoto Protocol

[Chinese translation]	Means the protocol to the UNFCCC adopted at the third conference of the

parties to the UNFCCC in Kyoto, Japan, on December 11, 1997.

[Chinese translation]  

	   
	   
	HVXISC Power Generation Using Steam from Coke Dry Quenching Project [Chinese translation]  

Emission Reduction Purchase Agreement                                                                                             Page 4 of 16

	Kyoto Rules

[Chinese translation]	Means the UNFCCC, Kyoto Protocol, the Bonn agreement, the

Marrakech Accords, any relevant decisions, guidelines, modalities and

procedures made pursuant to them and/or any succeeding international

agreements as amended and/or supplemented from time to time and which

include those rules specifically required to be met for the issuing and

transfer of CERs. /UNFCCC

[Chinese translation]  

	 Letter of Approval

(LOA)

[Chinese translation]  	Means a binding approval of the Project by the DNA of the Host Country

together with an approval of the transfer of CERs.

[Chinese translation]  

	Monitoring Report

[Chinese translation]	Means an annual report to be provided by Owner setting out the total

number of Emission Reductions generated by the Project during the

previous year according to the Kyoto Rules, international Monitoring

rules and the PDD.

[Chinese translation]  

	Monitoring

[Chinese translation]	Means the collection and record of data allowing the assessment of

reductions in GHG emissions resulting from the Project conducted in

accordance with the Kyoto Rules.

[Chinese translation]  

	Designated

Operational

Entity(DOE)

[Chinese translation]  	Means an independent entity accredited by the Executive Board being the

executive body for CDM and inter alias responsible for determining

whether a project and the resulting Emission Reductions meet the

requirements of Article 12 of the Kyoto Protocol.

[Chinese translation]  

	Project Design

Document (PDD)

[Chinese translation]  	Means a detailed description of the Project to be submitted for Validation

attached here in Annex []. The Purchaser will be responsible for providing

PDD development for Registration of the Project.

[Chinese translation]  

	Project

[Chinese translation]	Means the proposed CDM project described in the PDD and other

documents describing the implementation and economics of the Project

attached in Annex []

[Chinese translation]  

	  
	  
	HVXISC Power Generation Using Steam from Coke Dry Quenching Project [Chinese translation]  

Emission Reduction Purchase Agreement                                                                                           Page 5 of 16

	Registration

[Chinese translation]  	Means the official registration of a CDM project by the Executive Board

according to the Kyoto Rules.

[Chinese translation]  

	UNFCCC	Means the United Nations Framework Convention on Climate Change

adopted in New York on May 9, 1992.

[Chinese translation]  

	Unit Price

[Chinese translation]	Means the price payable by Purchaser to Project Proponent per Certified

Emission Reduction (CER) unit:

[Chinese translation]

The purchase unit price paid by EcoloCap Solutions Canada Inc to

Chinese Project Proponent for the CER is fixed at (9.6)Euro for the year

2009 to 2012; both parties will renegotiate the ERPA for the extension

period (2013-2026).

[Chinese translation]

The amount paid to the Chinese Project Proponent for the total certified

CER generated from this project is fixed at (80)% of the total value of

CER at this above mentioned purchase price ((9.6)Euro) “Total revenues”

is defined as the amount of: (9.6)Euro x total CER. Ecolocap Solutions

Canada Inc. will get ()% of the total revenues.

[Chinese translation]

TERM: [Chinese translation]

Project proponent agrees by this ERPA to sell CERs generated by the

project to the Purchaser for the year 2009 to 2012 and give the Purchaser

the right of first refusal to renegotiate the ERPA for the extension period

2013-2026

[Chinese translation]  

	Validation

[Chinese translation]  	Means the assessment of the PDD, including the Baseline, by an

Operational Entity, determining its compliance with the Kyoto Rules.

[Chinese translation]  

	   
	   
	HVXISC Power Generation Using Steam from Coke Dry Quenching Project [Chinese translation]  

Emission Reduction Purchase Agreement                                                                                                        Page 6 of 16

	Verification

[Chinese translation]	Means the periodic independent review and ex post determination of the

monitored reductions in GHG emissions that the Project has achieved

during a specified period of time by an Operational Entity in accordance

with the Kyoto Rules. The project's owner will be Responsible for

providing periodical monitoring.

[Chinese translation]  

	    
	    
	    
	Unless otherwise specified, references to clauses are to clauses of this Agreement, references to legal  
	provisions are references to such provisions as in effect from time to time, use of a gender includes any  
	gender and use of the plural includes the singular and vice versa where the context requires.  
	[Chinese translation]
	  
	All headings and titles are inserted for convenience only and shall not be deemed part of this  
	Agreement or taken into consideration in its interpretation.  
	[Chinese translation]
	  
	  
	1. 	  	Preamble [Chinese translation]  
			
			The Project is located on the territory of the Host Country. [Chinese translation]
	  
	2. 	 	Contractual Obligations [Chinese translation]  
	  
	2.1. 	 	Certified Emission Reductions [Chinese translation]  
	  
	2.1.1. 	  	The Purchaser will purchase the total certified emission reduction, the number of which is  
	  	  	monitored and accepted by the DOE.  
	  	  	[Chinese translation]  
	   
	2.1.2.		If the Project generates CERs, during the crediting period Project Proponent shall, to the extent
	  	  	it is legally possible and permissible, exclusively transfer or cause to be transferred to  
	  	  	Purchaser all rights (and, to the extent legally possible and permissible, legal title) which  
	  	  	Project Proponent may have in the Anticipated Emission Reductions generated during the  
	  	  	Crediting Period to Purchaser.  
	  	  	[Chinese translation]
	  
	   
	2.1.3.		Purchaser shall pay to Project Proponent the Unit Price for each Certified Emission Reduction
	  	  	generated by the Project and in which the Project Proponent's rights are transferred to  
	  	  	Purchaser in accordance with clause 3 below.  
	  	  	[Chinese translation]  
	  
	2.2. 	  	Emission Reductions generated after the Crediting Period [Chinese translation]  
	  
	  
	HVXISC Power Generation Using Steam from Coke Dry Quenching Project [Chinese translation]  

Emission Reduction Purchase Agreement                                                                                                  Page 7 of 16

	  	  	If the Project generates any Certified Emission Reductions after the Crediting Period,  
	  	  	Purchaser shall enter into negotiations with Project Proponent with a view to concluding an  
	  	  	agreement on the purchase of such Certified Emission Reductions based on the principles of  
	  	  	this Agreement but amended in order to reflect the international and/or national rules then  
	  	  	applicable.  
	  	  	[Chinese translation]  
	   
	3. 	  	Transfer [Chinese translation]  
	   
	  	  	Transfer to Purchaser of all the rights (and, to the extent legally possible and permissible, legal  
	  	  	title) which Project Proponent may have in a Certified Emission Reduction shall have  
	  	  	occurred upon the transfer of a CER from the register of the Executive Board to a register in  
	  	  	favor of Purchaser or such other account or register Purchaser has notified to Project  
	  	  	Proponent in writing.  
	  	  	[Chinese translation]  
	   
	4. 	 	Payment [Chinese translation]  
	   
	4.1. 	  	Payment for Certified Emission Reductions [Chinese translation]  
	   
	4.1.1. 	  	Payment by Purchaser to Project Proponent for the Certified Emission Reductions (the rights  
	  	  	in which are transferred pursuant to clause 3) shall be deposited in the project proponent’s  
	  	  	account within 60 Business Days after the CERs are delivered  
	  	  	[Chinese translation]  
	    
	4.1.2. 	 	All payments shall be made to the accounts specified from time to time be notified to the  
	  	  	other party in writing.  
			 [Chinese translation]
	   
	4.1.3. 	 	All payments shall be made in Euro. [Chinese translation]  
	   
	4.2. 	 	Costs and Expenses [Chinese translation]  
	    
	4.2.1.	 	Subject to clause 4.2.2 below, all taxes, fees, costs or other expenses in connection with the  
	  	  	generation of CERs by the Project and their Registration and transfer (including VAT in any  
	  	  	jurisdiction Purchaser duly notifies Project Proponent to transfer CERs as in Clause 3, if  
	  	  	applicable) shall be borne by Project Proponent and purchaser.  
	  	  	[Chinese translation]  
	   
	4.2.2. 	 	The share of the proceeds from CERs generated by the Project to be used to cover  
	  	  	administrative expenses and to assist developing countries that are particularly vulnerable to  
	  	  	the adverse effects of climate change to meet the costs of adaptation according to the Kyoto  
	  	  	Rules shall be borne by the Purchaser.  
	  	  	[Chinese translation]  
	   
	  	  	Project proponent shall pay all costs and fees in connection with the project-relevant  
	  	  	documents preparation for use in the host country, the submission, approval, construction,  
	   
	 
	HVXISC Power Generation Using Steam from Coke Dry Quenching Project [Chinese translation]  

Emission Reduction Purchase Agreement                                                                                           Page 8 of 16

	  	  	operation, maintenance and monitoring of the project activities taking place in the host  
	  	  	country, including but not limited to the tax, costs and expenses levied by Chinese National  
	  	  	Development and Reform Commission and other government authorities.  
	  	  	[Chinese translation]  
	   
	  	  	Purchaser shall pay all the costs and fees in connection with the CDM project development  
	  	  	abroad, including but not limited to the obtaining of any approvals from the Canada  
	  	  	government as required under the CDM rules, the preparation of PIN (project idea  
	  	  	note)/PDD(project design document), the validation, the verification/certification, and the  
	  	  	registration with CDM Executive Board.  
	  	  	[Chinese translation]  
	   
	4.2.3. 	  	All costs accrued to each of the Parties in negotiating, preparing, executing and carrying into  
	  	  	effect of this Agreement, shall be borne by each of the Parties themselves.  
	  	  	[Chinese translation]  
	   
	5. 	 	Termination and Remedies [Chinese translation]  
	   
	5.1. 		Either party (the "Non-defaulting Party") shall be entitled to terminate this Agreement by  
	  	  	written notice to the other party with immediate effect if any of the following events occurs:  
			[Chinese translation]
	              
	5.1.1. 		In case the Project is not register as a valid CDM Project activity with the CDM EB within  
	  	  	eighteen (18) months upon execution of the ERPA, either party shall have the right to  
	  	  	terminate its rights and obligations under the ERPA.  
			[Chinese translation]
	              
	5.1.2.	 	 In any given Contract Period, if the verification of the Project’s CERs is delayed by 90 days  
	  	  	or more due to the Project Proponent ’s or Purchaser’s fault and/or misconduct, each of the  
	  	  	non-defaulting parties shall have the right to terminate its rights and obligations under the  
	  	  	ERPA.  
			[Chinese translation]
	   
	5.1.3. 	  	In case the project is not commissioned within eighteen (18) months following the date of the  
	  	  	ERPA, each Purchaser shall have the right to terminate its rights and obligations under the  
	  	  	ERPA.  
			[Chinese translation]
	   
	5.1.4. 	  	Upon occurrence of an event of default or any other termination event in respect of the Project  
	  	  	Proponent or of Purchaser as provided in the ERPA, each of the non-defaulting parties shall  
	  	  	have the right to terminate its rights and obligations under the ERPA.  
			[Chinese translation]
	  
	5.2. 	 	Force Majeure [Chinese translation]  
	   
	  	  	Should either party be impeded wholly or in part from fulfilling any of its obligations under  
	   
	 
	HVXISC Power Generation Using Steam from Coke Dry Quenching Project [Chinese translation]  

Emission Reduction Purchase Agreement                                                                                                       Page 9 of 16

	  		the Agreement for reasons of Force Majeure, such obligation shall be suspended to the extent  
	  		and for as long as such obligation is affected by Force Majeure and the impeded party shall be  
	  		entitled to such extension of time as may be reasonably necessary.  
			[Chinese translation]
	  
	  		Either party shall notify the other party of the existence and date of beginning of an event of  
	  		Force Majeure that is likely to impede its performance under the Agreement within 5  
	  		Business Days after having obtained knowledge of any such event. Either party shall likewise  
	  		advise the other of the date when such event ended and shall also specify the re-determined  
	  		time by which the performance of its obligations hereunder is to be completed.  
			[Chinese translation] 
	 
	  		Project Proponent and Purchaser shall consult with each other with a view of determining any  
	  		further appropriate action if a condition of Force Majeure is to continue after 20 Business  
	  		Days from the date of giving notice thereof.  
			[Chinese translation]
	  
	  		Neither party shall be liable for damages or have the right to terminate this Agreement for any  
	  		delay in performing hereunder if such delay is caused by Force Majeure; provided, however,  
	  		that the non-impeded party shall be entitled to terminate such part of the Agreement that  
	  		remains unfulfilled, if the condition of Force Majeure is to continue after 6 months from the  
	  		date of giving notice thereof.  
			[Chinese translation] 
	  
	6. 		Change in Circumstances [Chinese translation]  
	   
	  		If any change in circumstances (i.e. a change of scientific basics or applicable standards  
	  		relating to the Baseline methodology and/or the applicable criteria for Verification and  
	  		Certification of the resulting Emission Reductions, or any changes related to  
	  		policy/regulations of the Chinese government) occurs which substantially affects the Project,  
	  		the parties to this Agreement shall enter into negotiations with a view to adapt the Project and  
	  		its implementation or any relevant provision of this Agreement, as may be necessary or  
	  		useful. A change in circumstances shall in no event be considered substantially affecting the  
	  		Project if at least 50% of the Anticipated Emission Reductions can be generated.  
			[Chinese translation]
	   
	  		The parties to this Agreement shall cooperate and make their best efforts to enable the  
	  		continuation of the Project in accordance with the new circumstances and to achieve the  
	  		generation and transfer of the Anticipated Emission Reductions.  
			[Chinese translation]
	   
	  		If any of the documents related to the Project and submitted at any time during the term of this  
	  		Agreement fails to be approved by such authority whose approval is required under the Kyoto  
	  		Rules or otherwise appears to be non-compliant with any relevant standards or conditions of  
	  		the Kyoto Rules, Project Proponent and Purchaser shall discuss whether or not the relevant  
	  		documents are to be revised and resubmitted.  
			[Chinese translation]
	   
	   
	HVXISC Power Generation Using Steam from Coke Dry Quenching Project [Chinese translation]  

Emission Reduction Purchase Agreement                                                                                                               Page 10 of 16

	7.      		
Conditions Precedent [Chinese translation]

	 
	 		
This Agreement shall enter into force upon satisfaction of the following conditions precedent: [Chinese translation] 

	 
	 		
Conclusion of a binding agreement with the Host Country. [Chinese translation]

	 
	8.      		
Miscellaneous [Chinese translation]

	 
	8.1.      		
Assignment and subcontracting [Chinese translation]

	 
	 		
Project Proponent shall not, without the written consent of Purchaser, assign or transfer the Agreement or the benefits or obligations thereof or any part thereof to any other person. [Chinese translation]

	 
	 		
Purchaser may transfer any of its rights or obligations under the ERPA to any third party (“assignee”) without consent of Project Proponent. However, rights and obligations between Purchaser and Project Proponent remain the same after the transfer.

	 		
[Chinese translation]

	 
	8.2.      		
Confidentiality and Disclosure [Chinese translation]

	 
	 		
The parties shall treat as confidential all information obtained as a result of entering into or performing this Agreement which relates to the provisions of this Agreement, the negotiations relating to this Agreement and the subject matter of this Agreement.

	 		
[Chinese translation]

	 
	 		
No party shall disclose any such confidential information to any third party, except in those circumstances where disclosure is required in order to comply with any laws or regulations, including without limitations the Kyoto Rules.

	 		
[Chinese translation]

	 
	8.3.      		
Notices [Chinese translation]

	 
	 		
Any communications to be made under or in connection with this Agreement shall be made in writing (including by facsimile) to the address or facsimile number, from time to time designated by the party to whom the communication is to be made to the other party for that purpose. The address and facsimile number so designated are set out in Annex [] hereto. [Chinese translation]

	 
	 		
Communication will only be effected, if sent by mail, when delivered to or rejected by the recipient, if sent by facsimile, when a transmission report shows that the facsimile has been sent.

	 		
[Chinese translation]

	 
	
	
HVXISC Power Generation Using Steam from Coke Dry Quenching Project [Chinese translation]

 

Emission Reduction Purchase Agreement                                                                                                                 Page 11 of 16

	8.4.      		
Entire Agreement [Chinese translation]

	 
	 		
This Agreement embodies the whole and only agreement of the parties with respect to the subject matter hereof, and no prior or contemporaneous oral or written agreement or understanding shall be deemed to constitute a part of this Agreement, unless expressly referred to herein, or attached hereto, or specifically incorporated by reference herein. The Annexes and schedules to this Agreement constitute integral parts of this Agreement and shall therefore be deemed part of this Agreement.

	 		
[Chinese translation]

	 
	8.5.      		
Amendments [Chinese translation]

	 
	 		
This Agreement may only be amended with the written consent of the parties hereto. [Chinese translation]

	 
	8.6.      		
Severability [Chinese translation]

	 
	 		
If any part or provision of the Agreement is or becomes illegal, void or unenforceable in any respect, the remaining parts or provisions shall not be affected or impaired. Any deficiency in the Agreement resulting there from shall be amended by way of interpretation of the Agreement having due regard to the parties intent.

	 		
[Chinese translation]

	 
	8.7.      		
Governing law [Chinese translation]

	 
	 		
This Agreement shall be governed by the laws of P.R.C., but in the event that there is no Chinese law governing a particular matter relating to this Agreement, reference shall be made to general international commercial practice.

	 		
[Chinese translation]

	 
	8.8.      		
Jurisdiction [Chinese translation]

	 
	 		
If any disputes arise between the parties relating to or in connection with this Agreement, the parties shall attempt at first instance to resolve such disputes through friendly discussion. If the disputes cannot be resolved in this manner to the satisfaction of the parties within forty-five (45) days after the date that any party has notified the other party in writing of such disputes, the parties shall submit the disputes to arbitration by the China International Economic and Trade Arbitration Commission. The arbitration awards shall be final and binding on the party, and the party agrees to be bound thereby and shall act accordingly.

	 		
[Chinese translation]

	 
	 		
The costs of arbitration will be borne by the losing party, unless otherwise determined by the arbitration award. During the process of arbitration, except the section over which the dispute arises between the parties, this CONTRACT shall be performed continuously.

	 		
[Chinese translation]

	 

 

HVXISC Power Generation Using Steam from Coke Dry Quenching Project [Chinese translation]

Emission Reduction Purchase Agreement                                                                                               Page 12 of 16

	8.9. 	  	Counterparts [Chinese translation]  
	  
	  	  	This Agreement shall be executed in four counterparts with two copies for Project Proponent  
	  	  	and two for Purchaser. If there are any discrepancies between the English and the Chinese  
	  	  	version, the Chinese version will prevail.  
	  	  	[Chinese translation]  

ANNEX I     The salient features of XISC Coke Dry Quenching Project at Xiangtan, Hunan Province, China.

[Chinese translation]

ANNEX II     Schedule for Project implementation

[Chinese translation]

Annex III       Work flow of CDM Activity

[Chinese translation]

Annex [ ]       Address designated

[Chinese translation]

 

HVXISC Power Generation Using Steam from Coke Dry Quenching Project [Chinese translation]

Emission Reduction Purchase Agreement                                                                                         Page 13 of 16

PARTIES TO THE AGREEMENT [Chinese translation] 

WHEREOF the parties have agreed to the terms and conditions of this agreement as outlined 

above, this 14th day of July, 2008, in the presence of: [Chinese translation]:

 

  

	Purchaser: [Chinese translation]:  	  
	  
	ECOLOCAP SOLUTIONS (CANADA) INC  	  
	(ECOLOCAP)  	  
	   
	  	DR. TRI VU TRUONG  
	  	President-CEO: Dr. Tri Vu Truong  
	  
	  
	Project Proponent: [Chinese translation]:  	  
	  
	Hunan Valin Xiangtan Iron & Steel Co., Ltd  	  
	(“HVXISC”) [Chinese translation]  	  
	   
	  	LIU, JIE  
	  	General Director: Liu, Jie [Chinese  
	  	translation]  
	   
	   
	   
	   
	Witness No 1  	Witness No 2  
	[Chinese translation]  	[Chinese translation]  

 

HVXISC Power Generation Using Steam from Coke Dry Quenching Project [Chinese translation]

Emission Reduction Purchase Agreement                                                                                                            Page 14 of 16

ANNEX I The salient features of HVXISC Power Generation Using Steam from Coke Dry

	Quenching Project at Xiangtan, Hunan Province, China.
	[Chinese translation]
	  
	No  	Parameters  	Units  	Value 
	1  	[Chinese translation]  	t/h  	126 
	2  	[Chinese translation]  	[Chinese translation]  	450 
	3  	[Chinese translation]  	MPa  	3.82 - 4.5 
	4  	[Chinese translation]  	[Chinese translation]  	3 
	5  	[Chinese translation]  	[Chinese translation]  	1 
	6  	[Chinese translation]  	kW  	25000 
	7  	[Chinese translation]  	h  	7560 
	8  	[Chinese translation]  	  106kwh/ [Chinese translation]	186.77 
	9  	[Chinese translation]  	  106kwh/ [Chinese translation]  	162.15 
	10  	[Chinese translation]  	[Chinese translation]  	56752.5 
	11  	[Chinese translation]  	[Chinese translation]  	148621 
	12  	[Chinese translation]  	[Chinese translation]  	12 
	13  	[Chinese translation]  	[Chinese translation]  	116933.7 
	14  	[Chinese translation]  	[Chinese translation]  	56750 
	15  	[Chinese translation]  	[Chinese translation]  	49110 
	16  	[Chinese translation]  	[Chinese translation]  	7170 
	17  	[Chinese translation]  	   	6.13% 
	18  	[Chinese translation]  	   	9.74% 
	19  	[Chinese translation]  	[Chinese translation]  	8.7 
	20  	[Chinese translation]  	[Chinese translation]  	8.0 

ANNEX II Schedule for Project implementation [Chinese translation]

HVXISC Power Generation Using Steam from Coke Dry Quenching Project [Chinese translation]

Emission Reduction Purchase Agreement                                                                                                 Page 15 of 16

Annex III Work flow of CDM Activity [Chinese translation]

HVXISC Power Generation Using Steam from Coke Dry Quenching Project [Chinese translation]

Emission Reduction Purchase Agreement                                                                              Page 16 of 16

Annex [ ] Address designated [Chinese translation]

Purchaser:/ [Chinese translation] 

ECOLOCAP SOLUTIONS (CANADA) INC (ECOLOCAP)

740 St Maurice suite 102

Montreal, Qc H3C1L5

Canada

Tel: 5148763907

Fax: 5148764080

Email: trivutruong2004@yahoo.ca

Project Proponent: [Chinese translation]:

Hunan Valin Xiangtan Iron & Steel Co., Ltd (“HVXISC”) [Chinese translation]

Address: Yuetang, Xiangtan City, Hunan, 411101, P. R. China [Chinese translation] 

Telephone: 0732- 8653018, 13707328182 

Fax : 0732-8628978 

Email: sheny3018@sohu.com

 

HVXISC Power Generation Using Steam from Coke Dry Quenching Project [Chinese translation]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00151-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00151-of-00352.parquet"}]]