Document:

EX-10.46

Exhibit
10.46

Agreement for Renminbi Loan (Long/ Medium Term

RENMINBI LOAN AGREEMENT ( LONG / MEDIUM TERM)

Serial Number: 2009 Nian Li Zhong Da Jie Zi NO.027

Borrower: Qingtian Wuliting Hydroelectric Development Co., Ltd.

Number of the Business License: 331121000002434 (1/1)

Legal Representative/ Responsible Person: John. D. Kuhns

Domicile: Lingxia Village, Zhenbu Township, Qingtian County

Post Code: 323900

Financial Institution of Deposit and Account:

Bank of China Limited, Lishui City Dayang Sub-branch; 830037890108093001

Telephone Number: 0578-2291151 Facsimile: 0578-2291172

Creditor: Bank of China Limited, Lishui City Dayang Sub-branch

Legal Representative/ Responsible Person: Lou Yingxiong

Domicile: No.399, Jiefang Street, Lishui City

Post Code: 323000

Telephone Number: 0578-2528155 Facsimile: 0578-2179561

The Borrower and Creditor, after equal consultation, upon the agreement regarding the long and
medium loan in Renminbi provided by the Creditor to the Borrower, hereby entered into this contract
(“this Contract”).

Article 1 Amount

The Amount of the loan: RMB 219,600,000.00 

Article 2 Term

The term of the loan: one hundred and eight (108) months, commencing from the actual loan
withdrawing date; in case of withdrawing in installments, the loan term shall be calculated from
the first actual withdrawing date.

Page 1 of 14

 

Agreement for Renminbi Loan (Long/ Medium Term

The Borrower shall strictly withdraw the fund as scheduled, in case that the actual withdrawing
date is later than the agreed withdrawing date, the Borrower shall still be required to repay the
fund in accordance with the repayment date provided in this Contract.

Article 3 Usage

The usage of the loan: replacing the project loans provided by other banks and paying the
project fund.

Without the written approval from the Creditor, the usage of the loan could not be altered by the
Borrower, which includes, without limitation, that the loan could not be used for stock or other
security investments, any project with the entrance prohibition provided by any laws, regulations,
regulatory rules and state policy or any project without approval required by laws, or other
project or usage that bank loans are forbidden to invest.

Article 4 The Interest Rate and the Interest Calculation and Settlement

	 	1	 	The interest rate

          Floating rate with the floating term of twelve (12) months:

The interest rate shall be re-fixed every twelve (12) months commencing from the actual
withdrawing date (or the first actual withdrawing date in case of withdrawing in installments), and
the re-determining date shall be the corresponding date of the re-determining month to the actual
withdrawing date. In the event there is no corresponding date to the actual withdrawing date, the
last date of the corresponding month would be regarded as the re-determining date.

	 	A	 	The first interest rate for each drawing shall be the benchmark rate for the loan
over five years issued and enacted by the People’s Bank of China on the actual
withdrawing date;
	 
	 	B	 	When the floating term of twelve months expired, the benchmark rate for the loan
as the same class as the loan herein issued and enacted by the People’s Bank of China on
the re-determining date shall be regarded as the applicable interest rate for the
following floating term.

	 	2	 	The interest calculation

Page 2 of 14

 

Agreement for Renminbi Loan (Long/ Medium Term

The interest calculation shall commence from the actual withdrawing date in light of the actual
withdrawing amount and the number of the days of such fund.

The calculation formula for the interest: Interests=the principal × the actual number of days × the
interest per day.

When calculating the interest per day, one year shall be calculated in 360 days, and the formula:
interest per day=interest per year/360.

	 	3	 	Settlement method

The interest would be settled every quarter, the 20th day of the last month of every
quarter shall be the settlement date, and the 21st day of such month shall be the
payment date of the due interest.

If the last installment repayment date of the principal of the loan is not the same as the interest
payment date, the last installment repayment date of the principal of the loan shall be regarded as
the interest payment date, and the Borrower shall pay off all the interests on that date.

	 	4	 	Default interest

	 	(1)	 	If the Borrower could not repay the loan on schedule, the interest for the
delayed part shall be calculated on the basis of the default interest rate for the
delayed loan from the delayed date until the full payment of such loan and relevant
interests.
	 
	 	 	 	The default interest rate for the delayed loan shall be 150% of the interest
rate provided in the Article (4) Item 1 hereof.
	 
	 	(2)	 	If the Borrower does not make use of the loan hereof in accordance with this
Contract, the interest for the misappropriated part shall be calculated on the basis of
the default interest rate for the misappropriated loan from the misappropriating date
until the fully payment of such loan and relevant interests.
	 
	 	 	 	The default interest rate for the misappropriated loan shall be 250% of the
interest rate provided in the Item 1, Article (4) hereof.
	 
	 	(3)	 	In case of the delayed as well as misappropriated loan, the default interest
shall be calculated on the basis of the default interest rate for the misappropriated
loan.
	 
	 	(4)	 	If the Borrower could not pay the interest on schedule, the compound interest
will

Page 3 of 14

 

Agreement for Renminbi Loan (Long/ Medium Term

	 	 	 	be calculated with the interest rate provided in the Item 1, Article (4) hereof, which
shall be settled in accordance with the interest settlement method provided in the
Item 3, Article (4) hereof during the loan term, and with the default interest rate
provided in this Item hereof when the loan term expires.
	 
	 	(5)	 	In case of the compound or default interest calculation, upon the interest rate
adjustment provided in this Contract, such compound or default interest shall be
calculated by sections on the basis of the adjustment date.

Article 5 Withdrawing Conditions

The withdrawal of the loan by the Borrower is subject to the full satisfaction of the following
conditions:

	 	1	 	This Contract and its appendices become effective;
	 
	 	2	 	The Borrower has provided the security as required by the Creditor, the security
agreement becomes effective and all relevant approvals, registration or filing
procedures as required by laws have been completed;
	 
	 	3	 	All documents, vouchers, seals, name list of relevant staff, sample of the
signature of the Borrower in relation to the execution and performance of this Contract
have been reserved to the Creditor and relevant vouchers have been filled in by the
Borrower;
	 
	 	4	 	The Borrower has opened the account required for the performance of this Contract
in accordance with the requirements of the Creditor;
	 
	 	5	 	The Borrower has submitted written application for the fund withdrawing and
relevant loan usage evidentiary documents to the Creditor and conducted relevant fund
withdrawing procedures ten (10) bank working day prior to the withdrawing date;
	 
	 	6	 	The Borrower has submitted to the Creditor the resolution adopted by the board of
directors or other authority of the Borrower and power of attorney regarding the
approval of the execution and performance of this Contract; (this condition is optional,
and please be noted that before the execution of this Contact, relevant approval or
authority issued to the Borrower in relation to the execution of this

Page 4 of 14

 

Agreement for Renminbi Loan (Long/ Medium Term

	 	 	 	Contract shall be reviewed.)
	 
	 	7	 	Other drawing conditions provided by laws and agreed by the Borrower and the
Creditor: / . Before the satisfaction of all the above-mentioned conditions,
the Creditor may refuse the fund withdrawing application of the Borrower unless the
Creditor could accept it and approve the fund withdrawing.

Article 6
Loan Withdrawing Schedule and Method

	 	1	 	The loan shall be withdrawn on March 19, 2009 in a lump sum by the Borrower.
	 
	 	2	 	The Creditor is entitled to reject the withdrawing application of the Borrower for the
un-withdrawn part of the loan after the withdrawing time.
	 
	 	 	 	As for the un-withdrawn part of the loan after the withdrawing time, if the Creditor approves
such loan withdrawing, the Creditor is entitled to receive the commitment fees in the amount
of 1% of the delayed withdrawn part of the loan; if the Creditor rejects such fund
withdrawal, the Creditor is entitled to receive the commitment fees in the amount of
3% of the rejected withdrawn part of the loan.

Article 7 Repayment

	1	 	Unless otherwise agreed by the Borrower and the Creditor, the loan under this Contract shall
be repaid by the Borrower in accordance with the following repayment schedule:

	 	 	 	 	 
	Repayment Date	 	Repayment Amount (RMB)
	December 20, 2009
	 	 	14,000,000	 
	December 20, 2010
	 	 	22,000,000	 
	December 20, 2011
	 	 	23,000,000	 
	December 20, 2012
	 	 	24,000,000	 
	December 20, 2013
	 	 	25,000,000	 
	December 20, 2014
	 	 	26,000,000	 
	December 20, 2015
	 	 	27,000,000	 
	December 20, 2016
	 	 	28,000,000	 
	December 20, 2017
	 	 	28,000,000	 
	March 18, 2018
	 	 	2,600,000	 

Page 5 of 14

 

Agreement for Renminbi Loan (Long/ Medium Term

If the Borrower needs to alter such repayment schedule, it shall submit the written application to
the bank thirty (30) bank working days prior to the corresponding repayment date; in
addition, the alteration repayment schedule shall be jointly confirmed by the Borrower and the
Creditor in written form.

	2	 	Unless otherwise agreed by the Borrower and the Creditor, on the condition that the Borrower
is in arrears with principal and interest payment at the same time, the Creditor shall be
entitled to determine the repayment sequence for principal and interest. On the condition of
repayment by installments; in case of several maturity loans and overdue loans existing at the
same time, the Creditor shall be entitled to determine the repayment sequence for certain
installment of repayment by the Borrower; in case of several overdue loan contracts between
the Borrower and the Creditor, the Creditor shall be entitled to determine the sequence for
implementing contracts for each repayment.
	 
	3	 	Unless otherwise agreed by the Borrower and the Creditor, the Borrower shall be entitled to
make repayment ahead of schedule, but shall notify the Creditor in written form seven
(7) bank working days in advance. The prepayment amount shall be used to repay the last
installment to become due, and shall repay the loan in reverse order.
	 
	 	 	The Creditor is entitled to receive the compensation fees in the amount of 2% of
the amount paid before its due payment date.
	 
	4	 	The Borrower shall repay the loan in the following methods
	 
	 	 	The Borrower shall remit the fund in the amount of no less than the due payment to the
following repayment account at least three (3) bank working days prior to each due
payment date for preparation, and the Creditor is entitled to deduct the fund in the amount
of the due payment from the repayment account actively on every due payment date.
	 
	 	 	Account name of the repayment account: Qingtian Wuliting Hydroelectric Development Co.,
Ltd.
	 
	 	 	Account number: 830037890108093001

Page 6 of 14

 

Agreement for Renminbi Loan (Long/ Medium Term

Article 8
Security

	 	1	 	The security form for the loan of this Contract shall be:
	 
	 	 	 	This Contract shall be the main contact of the Maximum Amount Mortgage Contract with the
serial number of 2009 Nian Li Zhong Da Di Zi No.027 entered into by the Creditor and the
mortgagor, namely, Qingtian Wuliting Hydroelectric Development Co., Ltd., and the loan of
this Contract shall be secured by the maximum amount mortgage.
	 
	 	2	 	In case that any event is occurred to the mortgagor or the Borrower which may, deemed by
the Creditor, affect the performance capability of the mortgagor or the Borrower, or the
security contract becomes invalid, is revoked or terminated, the financial conditions of the
mortgagor or the Borrower becomes deteriorated or the mortgagor or the Borrower is involved
in any material lawsuit or arbitration case, or other causes are occurred which can affect
the performance capability of the mortgagor or the Borrower, any default of the mortgagor to
the other contracts between the mortgagor and Creditor is occurred, or any depreciation,
damage, loss or attachment of the mortgaged property is occurred, which causes the mortgaged
value decreased or lost, the Creditor is entitled to require and the Borrower is obligated
to provide new security, change the guarantor and etc. to secure the loan hereunder.

Article 9 Insurance

The Borrower shall take out the insurance for the project or the equipment, project construction,
goods transportation in relation to the trade or other risks during the operation of the project
hereunder from the insurance company agreed by the Creditor, the coverage of the insurance taken
out shall be in compliance with the requirement of the Creditor, and the insured amount shall be no
less than the amount of the principal.

The Borrower shall deliver the original policy of such insurance to the Creditor within ten
(10) days after the effectiveness of this Contract, and before the full payment of the
principal, interest and fees under this Contract, the Borrower shall not terminate such insurance
due to any reason. In case of any termination of such insurance by the Borrower, the Creditor is
entitled to extend such insurance or take out new insurance on behalf of the Borrower with relevant
fees undertaken by the Borrower; and the Borrower shall assume the obligation for

Page 7 of 14

 

Agreement for Renminbi Loan (Long/ Medium Term

the loss incurred by the Creditor as a result of the insurance termination.

The Borrower shall notify the Creditor in written form within three (3) days after it knows
or should have known the occurrence of any insured accidents, and apply to the insurance company
for claim in accordance with relevant regulations in a timely fashion. Any loss incurred by the
Creditor as a result of the failure to notify the Creditor in time or apply for claim or other
default of the insurance policy shall be assumed by the Borrower.

Article 10 Representations and Undertakings

	 	1	 	The Borrower hereby represents that::

	 	(1)	 	it has been duly established and registered and is validly and legally in
existence, and has the full civil rights and capabilities for signing and implementing
this Contract;
	 
	 	(2)	 	Signing and fulfilling this Contract has been based on the true intention
expressed by the Borrower, and it has procured the legal and valid authorization as
required by its articles of association or other internal management documents, and will
not violate any agreement, contract and other legal document which the Borrower is bound
by. The Borrower has procured or will procure all relevant approvals, permits, filings
or registrations required for signing and implementing this Contract;
	 
	 	(3)	 	All the documents, financial statements, vouchers and other materials provided by
the Borrower to the Creditor under this Contract are true, complete, accurate and
effective;
	 
	 	(4)	 	The transaction background disclosed by the Borrower as its business for the loan
application to the Creditor shall be true and legal, which shall not be used for money
laundering and other illegal purposes.
	 
	 	(5)	 	The Borrower does not conceal any event which may influence the financial
conditions and implementation ability of the Borrower or the security provider.
	 
	 	(6)	 	No other representations made by the Borrower.

	 	2	 	The Borrower hereby undertakes that:

	 	(1)	 	It would submit the financial statements (including, without limitation, the
annual,

Page 8 of 14

 

Agreement for Renminbi Loan (Long/ Medium Term

	 	 	 	quarterly, or monthly statements ) and other relevant materials periodically or in
time according to the requirements of the Borrower;
	 
	 	(2)	 	In case the Borrower and the security provider hereunder have entered into or
will enter into a counter security agreement or similar agreement concerning the
security obligations, such agreement will not prejudice any right of the Creditor under
this Contract;
	 
	 	(3)	 	It accepts the credit inspection and supervision from the Creditor, and provides
adequate assistance and cooperation;
	 
	 	(4)	 	In case of the occurrence of circumstances which may influence the financial
conditions and implementation ability of the Borrower or the security provider,
including but not limited to any form of spin-off, merger, affiliation, joint venture
and cooperation with foreigners, contract operation, recombination, restructuring,
planning for listed, etc., or decrease of registered capital, transfer of material
assets or equity stake, assuming material debts or creating new material debts on
collateral, the collateral being sealed up, dismissed, revoked or applied for
bankruptcy, etc., or involvement in material lawsuits or arbitration case, or difficulty
in operation or deterioration in financial conditions, or the Borrower’s events of
default under other contracts, the Borrower shall immediately inform the Creditor. In
case of carrying out any of the aforesaid actions which will cause adverse impact on the
repayment ability of the Borrower, the prior approval of the Creditor must be procured.;
	 
	 	(5)	 	The repayment sequence for the debts of the Borrower to the Creditor shall have
precedence over the repayment for the loan provided by the Borrower’s shareholder, and
shall not be second to the repayment of the Borrower’s other loans of the same kind to
other creditors;
	 
	 	(6)	 	On the condition that the after-tax net profit of relevant fiscal year is zero or
a minus number, or the after-tax profit is not sufficient to offset the accumulated
deficit of previous years, or the pre-tax profit has not been used to pay off the
payable principal, interest and fees of that fiscal year, or the pre-tax profit is not
sufficient to pay off the principal, interest and fees of the next installment, the

Page 9 of 14

 

Agreement for Renminbi Loan (Long/ Medium Term

	 	 	 	Borrower shall not distribute stock dividend or bonus in any form to its shareholders;
	 
	 	(7)	 	The Borrower shall not dispose of its self-owned assets in a way impairing its
repayment ability, and warrants that the total amount of its external security shall not
exceed 1.5 times of its net assets, and the total amount of external security
and the amount of each security shall not exceed the limit provided by its articles of
association.
	 
	 	(8)	 	Other undertakings of the Borrower: None.

Article 11 The Default Event and Resolution

	 	1	 	Any of the following circumstances may constitute or be deemed as the Borrower’s breach
of contract under this Contract:

	 	(1)	 	The Borrower fails to fulfill the payment and repayment obligations according to
the provisions hereof;
	 
	 	(2)	 	The Borrower fails to use the obtained capital for agreed purpose according to
the provisions hereof;
	 
	 	(3)	 	The representations made by the Borrower hereunder are not real, or the Borrower
disobeys its warranties hereunder;
	 
	 	(4)	 	In case of occurrence of the circumstances provided in item 4, clause 2, Article
10 hereunder, the Creditor deems may impact the financial conditions and implementation
ability of the Borrower or the security provider, however, the Borrower fails to provide
new security or replace the security provider as prescribed herein;
	 
	 	(5)	 	The Borrower violates other provisions hereunder concerning the rights and
obligations of the Parties;
	 
	 	(6)	 	The Borrower violated the provisions under other contracts concluded with the
Creditor or other institutions of Bank of China Limited;
	 
	 	(7)	 	The security provider violates the provisions of the security contract, or
violates the provisions under other contracts concluded with the Creditor or other
institutions of Bank of China Limited;

Page 10 of 14

 

Agreement for Renminbi Loan (Long/ Medium Term

	 	(8)	 	The Borrower is closed down or dissolved, cancelled or going into bankruptcy.

	 	2	 	In case of the aforesaid breach of contract, the Creditor shall be entitled to separately
or simultaneously take the following measures depending on specific conditions:

	 	(1)	 	Requiring the Borrower or security provider to rectify its breach of contract
within a specified time limit;
	 
	 	(2)	 	Fully or partly reducing, suspending or terminating the credit amount to the
Borrower;
	 
	 	(3)	 	Fully or partly suspend or terminate the acceptance of withdrawal application or
other applications of the Borrower under this Contract or other contracts between the
Borrower and the Creditor; as for the loan which has not been issued and the trade
financing which has not been conducted, to fully or partly suspend or terminate the
issuance and conduct;
	 
	 	(4)	 	To announce the principal and interest of the outstanding loans/trade financing
capital and other payables under this Contract or other contracts between the Creditor
and the Borrower will fully or partly become due immediately;
	 
	 	(5)	 	To terminate or rescind this Contract, and wholly or partly terminate or rescind
other contracts between the Creditor and the Borrower;
	 
	 	(6)	 	To require the Borrower to compensate on the losses suffered by the Creditor due
to the breach of contract;
	 
	 	(7)	 	Only needed to make previous or afterwards notice, to deduct and transfer the
fund in the accounts opened by the Borrower with the Creditor or other institutions of
Bank of China Limited to fully or partly pay off the debt owed by the Borrower to the
Creditor under this Contract. The undue fund in the accounts shall be deemed as becoming
due in advance. In case the currency in the accounts is different from the calculation
currency of the Creditor, the fund shall be calculated at the exchange rate for
settlement and sales used by the Creditor at the time of deduction and transfer;
	 
	 	(8)	 	To exercise the security right;
	 
	 	(9)	 	To request the guarantor to assume the guarantee liability;
	 
	 	(10)	 	Other measures deemed as necessary and possible by the Creditor.

Page 11 of 14

 

Agreement for Renminbi Loan (Long/ Medium Term

Article 12 Reservation of Right

The non-exercise of all or part of entitlements hereunder, or the failure of requiring the other
Party to implement or assume whole or part of the obligations and liabilities shall not be regarded
as a waiver of the said entitlement or exemption of the said obligation and liability.

Any tolerance, extension or delay in the exercise of the entitlements hereunder by one Party to the
other shall not influence any entitlements which shall be enjoyed by the Party according to this
Contract or laws and regulations, nor shall be regarded as a waiver of the said entitlements.

Article 13 Alteration, Amendment and Termination

After being agreed by the Parties through consultation, this Contract may be altered or amended in
written form. Any alteration or amendment shall constitute an integral part of this Contract.

Unless otherwise provided by laws and regulations or otherwise agreed by the Parties, this Contract
shall not be terminated until all rights and obligations hereunder have been fully implemented.

Unless otherwise provided by laws and regulations or otherwise agreed by the Parties, the
invalidity of any article hereunder shall not impact the legal effect of other articles.

Article 14 Applicable Law and Dispute Resolution

This Contract shall be governed by the laws of the People’s Republic of China.

Upon the effectiveness of this Contract, any dispute arising out of the establishment or
performance of this Contract or in relation to this Contract shall be resolved through
consultation; in case of no agreement entered into through consultation, each party hereto could
submit this dispute to the people’s court at location of the Creditor or other institution of Bank
of China Limited which exercises rights and obligations according to this Contract or other special
contracts.

During the process of dispute resolution, in the event that the dispute does not impact the
implementation of other articles hereunder, other articles shall be continuously implemented.

Page 12 of 14

 

Agreement for Renminbi Loan (Long/ Medium Term

Article 15 Costs

Unless otherwise determined by the law or otherwise agreed by the Parties, all expenses arising
from establishing and implementing this Contract and dispute resolution (including but not limited
to attorney fees, etc.) shall be born by the Borrower.

Article 16 Appendices

The following appendices and other appendices mutually confirmed by the Parties shall constitute an
integral part of this Contract, and shall have the same legal effect as this Contract:

	 	1	 	Loan Withdrawing Application;
	 
	 	2	 	Loan Due Bill.

Article 17 Miscellaneous

	 	1	 	Without the written consent from the Creditor, the Borrower shall not transfer any
right or obligation hereunder to any third party;
	 
	 	2	 	In the event the Creditor needs to entrust t other institution of Bank of China
Limited to implement its rights and obligations hereunder due to business requirement, or
the loan business under this Contract is transferred to other institution of Bank of China
Limited for undertaking and management, the Borrower shall accept the aforesaid
arrangements. Other institution of Bank of China Limited which is entrusted by the
Creditor, or other institution of Bank of China Limited which is undertaking the loan
business hereunder shall be entitled to exercise all rights of the Creditor under this
Contract, and shall be entitled to, in the name of the said institution, bring a lawsuit
to the people’s court, submit to arbitration institution or apply for enforcement for the
disputes hereunder.
	 
	 	3	 	Without prejudice to the other provisions hereof, this Contact shall be binding on
the Borrower and the Creditor and its respective legal successor and transferee.
	 
	 	4	 	Unless otherwise agreed, the Parties determine that the registered address specified
hereunder shall be the address for communication and contact, and warrants that in

Page 13 of 14

 

Agreement for Renminbi Loan (Long/ Medium Term

	 	 	 	case of alteration of the communication and contact address, they shall inform the other
Party in written form in a timely manner.
	 
	 	5	 	The transaction hereunder shall be based on the respective independent interest of
the Parties. In case according to the regulatory requirements of laws and regulations, the
other Party to this transaction constitutes a related party or a related individual of the
Creditor, no party shall seek to use this kind of related relationship to impact the
fairness of the transaction.
	 
	 	6	 	The titles and business names hereunder shall be used only for the convenience of
designation and shall not be used for interpretation of the content of articles hereunder
and the rights and obligations of the Parties.

Article 18 Effectiveness

This Contract shall come into effect after being signed by the legal representatives (responsible
persons) or authorized representatives of the Creditor and the Borrower and affixed with the seals.

This Contract shall be executed in two (2) counterparts, each of the Borrower and Creditor
holds one(1) with the same legal effect.

The Borrower: Qingtian Wuliting Hydroelectric Development Co., Ltd                    

   (official stamp)

Signature:                                        

March 19, 2009

The Creditor: Bank of China Limited, Lishui City Dayang Sub-branch

   (official stamp)

Signature:                                        

March 19, 2009

Page 14 of 14

 

LOAN WITHDRAWING APPLICATION

Number: 2009 Nian Li Zhong Ren Min No.027

To: Bank of China Limited, Lishui City Dayang Sub-branch

In accordance with the Loan Contract (Number: 2009 Nian Li Zhong Da Jie Zi No.027) entered into
between your good bank and us, we hereby apply to withdraw the fund in the full amount under the
said contract.

			
	The withdrawal amount:	 	Two Hundred and Nineteen Million and Six Hundred Thousand

Reminbi (RMB219,600,000.00)

Please transfer the above-mentioned fund into the account numbered 830037890108093001 on March 19,
2009.

This withdrawing application is irrevocable. We warrant that all conditions precedent to the
withdrawal under the Loan Contract have been fully satisfied and this fund, once transferred into
the said account, shall immediately constitute the debt owed by us to your good bank under the Loan
Contract.

	 	 	 
	 

	 	Applicant: Qingtian Wuliting Hydroelectric Development Co., Ltd.
	 
	 	 
	 

	 	Legal Representative: _______________
	 
	 	 
	 

	 	March 19, 2009           
          

 

 

 BANK OF CHINA            LOAN DUE BILL (BILL) 

     Filling Date: March 19, 2009

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Full Name of Borrower	 	Qingtian Wuliting Hydroelectric Development Co., Ltd.	 	 	 	Deposit Account	 	 	830037890108093001	 
	 
	Loan Type

	 	Medium and Long-term Loan
	Interest Rate	
	Annual (Rate) 5.94%	
	 	Loan Account
	 	 	7131	 
	 
	Loan Amount (Capitalized)	 	Two Hundred and Nineteen Million and Six Hundred Thousand Reminbi	 	 	 	     RMB219,600,000.00
	 
	Loan Reason or Purpose	 	Loan Replacement and Project Fund	 	Agreed Repayment Date	 	 	March 19, 2018

	 
	System Contract Number	 	09682801	 	 	 	 	 	 	 	 

	 	 	 
	In accordance with the Loan Measures of your bank, we borrowed the above-mentioned
loan and issued this bill for record.

	 	Please refer to Loan Application Letter for the examination and approval
opinion of credit department.
	 
	 	 
	 

	 	Accounting Entry:

(debit)   7131

(credit)   809
	 
	 	 
	Seal of the Borrower

(Reserved specimen seal with Bank)

	 	Checker:               Bookkeeper:EX-10.47

Exhibit 10.47

MEDIUM/LONG-TERM RENMINBI LOAN CONTRACT

(Applicable to Single Corporate Business)

Contract Number: Gu 132009010094

     The Lender: Industrial Bank Co., Ltd., Ningde Branch,

     Domicile: No.11, Jiaocheng South Road, Ningde City

     Legal Representative/ Responsible Person: Wang Cheng’an 

     Contact Person:                      Position:                     

     Communication Address: No.11, Jiaocheng South Road, Ningde City 

     Post Code: 352100 Telex:                     

     Telephone Number: 0593-2886359 Facsimile:                     

     The Borrower: Pingnan County Wangkeng Hydroelectric Co., Ltd. 

     Domicile: Wangkeng Village, Tangkou Township, Pingnan County 

     Legal Representative/ Responsible Person: John D. Kuhns

     Contact Person:                      Position:                     

     Communication Address:                                         

     Post Code: 352100 Telex:                     

     Telephone Number: 0593-3325398 Facsimile:                     

Signing Place: Ningde City 

1

 

Upon the application of the Borrower, the Lender has reviewed and agreed to provide the
medium/long-term RMB loan to the Borrower according to the terms and conditions under this
Contract. In order to specify rights and obligations of both Parties and honor credibility
and good faith, after equal consultation, the Parties hereto are willing to enter into this
Contract according to the provisions of relevant laws and regulations of the People’s
Republic of China.

Article 1 Definition and Interpretation

Unless otherwise agreed by the Parties hereto in written form, the following terms used in this
Contract shall have the definitions and interpretations set forth below:

	1.	 	“Creditor’s Right” or “Principal Creditor’s Right” refers to the RMB creditor’s right
(including the principal, interest, default interest, compound interest, liquidated
damages, compensatory damages and other expenses of the Creditor to realize its
creditor’s right) enjoyed by the Lender for providing capital financing to the Borrower
according to this Contract, which has been applied by the Borrower (the Debtor) to the
Lender (the Creditor ) and has been examined and approved by the Lender.
	 
	 	 	The Lender and the Borrower (hereinafter referred to as “the Parties”) have both agreed
and confirmed that, the Creditor’s Right enjoyed by the Lender over the Borrower under
this Contract shall be consistent with the debt owed by the Borrower to the Lender under
this Contract.
	 
	2.	 	“Expense for Realization of Creditor’s Right” shall include but not limited to costs,
arbitration fees, property preservation fees, execution charge, attorney fees, case
handling fees, affiche fees, valuation fees, appraisal fees, auction charge, sale fees,
communication fees, travel fees and disposition fees, etc.
	 
	3.	 	“Material Transaction” mentioned in Article 12 hereof refers to (including without
limitation) any definite or potential transaction which may materially affect the

2

 

	 	 	company’s basic structure, alteration of shareholder, contingent debt, cash flow,
profitability, core business secret, core competitive strength, material assets, material
Creditor’s Rights and debts, debt repayment ability and ability to implement this
Contract, or other transactions which the Lender and/or the Borrower deem may constitute
material transactions.
	 
	4.	 	“Material Event” mentioned in Article 12 hereof refers to (including without
limitation) any definite or potential event which may materially affect the capacity of
the Lender’s senior management to perform duties, the employment and rescission of
employees conducting core business, the company’s core business secret, core
competitive strength, basic structure, shareholder alteration, contingent debt,
existence, legality of company’s business, stability, development and profitability of
company, debt repayment ability and the ability to implement this Contract, or other
events which the Lender and/or the Borrower deem may constitute material events.
	 
	5.	 	“Working Days” hereunder refers to the business days of the Lender’s bank. During the
implementation of this Contract, in the event any withdrawal date or repayment date is
not on a business day, such date will be naturally extended to the next business day.

Article 2 Loan Amount

The Lender agrees to provide the Borrower with a loan in the amount of RMB 150,000,000.00.

Article 3 Loan Purpose

The loan shall be used for the purpose of (1) replacing the project loans from other banks
in the amount of RMB 103,000,000.00, including the loan from the Industrial and Commercial
Bank in the amount of RMB 55,000,000 and the loan from the Agricultural Bank in the amount
of RMB 48,000,000; and (2) replacing the non-bank loans in the amount of RMB 47,000,000.
Without prior written consent from the Lender, the Borrower shall not change the agreed
purpose of the loan hereunder.

3

 

Article 4 Loan Term

	1.	 	The loan term shall be: ninety-six (96) months, commencing from March 24,
2009 to March 24, 2017.
	 
	2.	 	In case the loan is issued by the Lender in a lump, the issuance date shall be the
actual date of issuing the loan specified in the certificate of indebtedness and loan
note. In case the actual date of issuing the loan is later than the issuance date
provided in the preceding sentence, the maturity date for the loan shall be extended
accordingly.
	 
	3.	 	The loan shall be withdrawn by installments according to the following
plan: RMB 103,000,000 on April 9, 2009; RMB 47,000,000 on
April 10, 2009.
	 
	 	 	The Borrower shall, within three (3) Working Days prior to the withdrawal date for each
installment or at other time required by the Lender in written form, apply to the Lender
for completing procedures for issuing the loan.
	 
	 	 	In the event the Borrower fails to withdraw the loan on the aforesaid dates, the Lender
shall be entitled to require the Borrower to pay ___of the loan amount as
compensations.
	 
	 	 	In case all conditions precedent provided in Article 6 hereof have been satisfied, the
Lender shall remit the agreed amount by installments into the account of the Borrower on
the aforesaid agreed dates.
	 
	4.	 	The Lender shall be entitled to adjust the loan withdrawing plan by considering
whether the project complies with the provisions of relevant laws, regulations and
policies and the conditions precedent required by the Lender for issuing the loan, the
execution of corresponding security contract and the date of completing security
procedures and other factors which are deemed necessary by the Lender. In the event the
Borrower fails to fulfill the conditions precedent agreed hereunder, the Lender shall
be entitled to cease issuance of the loan or terminate this Contract, and the Borrower
shall assume relevant liabilities for breach of contract.
	 
	5.	 	If the loan is withdrawn by installments, all installments of the loan shall have the
same maturity date, namely, all installments of the loan shall become mature on the
maturity date specified in the certificate for indebtedness or loan certificate for the
first installment
of loan.

4

 

	6.	 	In case the Lender recovers the loan before the maturity date according to the
provisions hereof, the maturity date of the loan shall be deemed as having been moved
up accordingly.

Article 5 Interest Rate and Calculation of Interest

	1.	 	The interest rate for the loan hereunder shall be executed as the following second method:

	 	(1)	 	Fixed interest rate, with an annual interest rate of      /      %. In case of adjustment
of national benchmark interest rate during the period between the loan issuance date provided
in Article 4 hereof and the actual issuance date for each installment, the fixed interest rate
shall be increased by /      % or decreased by /      % of national benchmark interest
rate on the actual issuance date for the loan on the same level and within the same period,
that is, the actual interest rate shall be equal to the benchmark interest rate on the actual
issuance date for the loan on the same level and within the same period multiplied by the
factor of      /      . Furthermore, the loan term shall not be adjusted due to the adjustment
of national benchmark interest rate.
	 
	 	(2)	 	Floating interest rate, which shall be re-fixed once every year (month/quarter/half
a year/year/other terms), with an annual interest rate being /      % over or
/      % below the national benchmark interest rate for the loan on the level and
within the same period, that is, the actual interest rate shall be equal to the
benchmark interest rate for the loan on the same level and within the same period
multiplied by the factor of 1. The interest rate for the first term shall be the
national benchmark interest rate on the actual issuance date for the loan on the same
level and within the same period multiplied by the aforesaid factor, and after every one
year (month/quarter/half a year/year/other terms) from the actual issuance date,
the interest rate for the next term shall be fixed as the national benchmark interest
rate at that time for the loan on the same level multiplied by the aforesaid factor.
	 
	 	 	 	During the term of the loan hereunder, in case of any adjustment of national benchmark
interest rate, the Lender shall not need to notify the Borrower.

5

 

	 	(3)	 	Other interest rate:      /     . 

	2.	 	The interest rate for each installment of loan hereunder shall be fixed according to
the national benchmark interest rate on the actual issuance date for the loan on the
same level and within the same period.
	 
	3.	 	In case the benchmark interest rate is cancelled by the State, the Lender shall be
entitled to re-fix the interest rate for the loan hereunder according to the interest
rate policy of the state within the same period and on the principle of equality and
good faith and considering the industry practice, interest rate conditions and other
factor. In case of any dissent, the Borrower shall consult with the Lender in a timely
manner. Where the consultation fails, the Lender shall be entitled to recover the loan
in advance, and the Borrower shall immediately make repayment for the rest principal
and interest of the loan.
	 
	4.	 	Interest Repayment Method
	 
	 	 	The interest repayment shall be executed as the following first method:

	 	(1)	 	The interest settlement date for the loan hereunder shall be the 20th day
in the last month of each quarter (month/last month of each quarter/last month
of half a year/last month of each year/other terms). The Borrower shall, on the next day
of the interest settlement date, pay off the interest for the loan in this term, and on
the maturity date of the loan, pay off the rest principal and interest.
	 
	 	(2)	 	Other repayment ways:      /     . 

	5.	 	Default Interest and Compound Interest

	 	(1)	 	In the event the Borrower fails to use the loan for the agreed purpose, the Lender
shall be entitled to require the Borrower to pay default interest for the
misappropriated part at a default interest rate of one hundred percent (100%)
over the interest rate for the loan hereunder. In the event the Borrower fails to make
repayment on schedule and fails to reach an agreement with the Borrower concerning the
extension of the payment, that is, the loan is overdue, the Lender shall be entitled to
require the Borrower to pay default interest for the overdue loan at a default interest
rate of fifty percent (50%) over the interest rate for the loan hereunder. As
for the interest which has not been paid on schedule, the Lender shall be entitled to
require the Borrower to

6

 

	 	 	 	pay compound interest at the default interest rate for overdue loan agreed hereunder.
	 
	 	(2)	 	In case of executing fixed interest rate for the loan, the default interest shall take fixed
interest rate; in case of executing floating interesting rate for the loan, the default
interest shall take floating interest rate, the floating period of which shall be the same as
the floating period of the interest rate for the loan.
	 
	 	(3)	 	The settlement and payment method for the default interest and compound interest
shall be executed according to the payment method for the loan interest as agreed
hereunder.

Article 6 Issuance and Repayment of the Loan

	1.	 	Issuance of the Loan
	 
	 	 	The Lender shall not issue the loan hereunder to the Borrower until the following
conditions precedent required by the Lender for issuing the loan have been fully satisfied:

	 	(1)	 	The Borrower has delivered the following documents to the Lender, and the contents specified in
such documents have never been altered and kept valid, or the Borrower has made satisfactory
explanation and illustration to the Lender concerning such alteration:

	 	A.	 	Articles of association, business license, signature specimens of directors and
legal representative filed with the administrative authority for industry and
commerce, capital verification report, duplicate of ID card of the Borrower’s
legal representative, and other cooperate documents deemed necessary by the
Lender, which have been confirmed by the Borrower in written form;
	 
	 	B.	 	Originals of authentic, legal and valid resolutions concluded in duly convened
shareholders’ meetings or meetings of board of directors of the Borrower, which
have been adopted by the quorum of directors or shareholders approving the application
for the loan hereunder and have specified the loan purpose and the acceptance of all
conditions raised by the Lender for the loan, or other documents deemed necessary by the
Lender;
	 
	 	C.	 	Annual financial reports and statements for the most recent three years, which

7

 

	 	 	 	have been audited and confirmed by the Lender, or other financial documents
deemed necessary by the Lender;
	 
	 	D.	 	In case the project using the loan hereunder needs to be filed for approval
according to the regulations or requirements of relevant competent authorities of
the State, the Borrower has provided the Lender with authentic and valid originals
of approval documents issued by relevant competent authorities of the State;
	 
	 	E.	 	In case of existence of any third-party security, the security provider’s
articles of association, business license and signature specimens of legal
representative and
directors filed with the administrative authority for industry and commerce, and
the authentic, legal and valid resolutions made by competent department of the
security provider approving to provide security for the loan hereunder, and
other documents deemed necessary by the Lender, which have been confirmed by the
security provider in written form;
	 
	 	F.	 	Other documents, statements and vouchers, etc. which are required by the Lender.

	 	(2)	 	The Borrower has filled in the relevant certificate of indebtedness or loan voucher
concerning to the loan hereunder. Such certificate of indebtedness or loan voucher
shall constitute part of this Contract and have the same legal effect as this
Contract. In case of inconsistency between this Contract and the certificate of
indebtedness or loan voucher on the loan amount, loan term and interest rate, etc.,
the certificate of indebtedness or the loan voucher shall prevail.
	 
	 	(3)	 	All representations and warranties made by the Borrower under Article 8 hereof shall be
continuously true and valid. In addition, there are neither default events which have already
occurred nor potential default events on or before the withdrawal date.
	 
	 	(4)	 	In case of existence of
mortgage/pledge, all required registration procedures for mortgage/pledge have been completed in
accordance with the requirements of relevant laws and regulations, and originals of relevant title
certificate documents and registration certificates, etc. have been delivered to the Lender for
preservation upon its request. In case of existence of third-party guarantee, such guarantee
contract has already come into effect. The above-mentioned securities shall keep valid
continuously.

8

 

	 	(5)	 	In the event the Lender requires taking out insurance for mortgaged property,
relevant insurance, the first beneficiary of which shall be the Lender, shall have been
taken out, and the original insurance policy shall have been delivered to the Lender; in
addition, such insurance shall keep valid continuously.
	 
	 	(6)	 	In case the Lender requires carrying out notarizations, relevant notarization
procedures shall have been completed.
	 
	 	(7)	 	The Borrower has opened the account with the Lender according to the requirement of
the Lender and has paid off relevant fees hereunder according to the requirement of the
Lender.
	 
	 	(8)	 	Other conditions for issuing the loan required by the Lender.

	 	 	The Lender’s performance of its obligations hereunder shall be based on the premise of
satisfaction of all above-mentioned conditions. The Lender shall be entitled to
unilaterally lower or waive partial condition precedents, which shall not be considered
as a defense against the Lender by the Borrower or the security provider. In case the
principal of the loan hereunder has been remitted by the Lender, the loan shall be
deemed as having been issued, and the interest for such installment of loan shall be
calculated commencing from the issuance date.
	 
	2.	 	Payment of the Loan

	 	(1)	 	The principal of the loan hereunder shall be repaid in accordance with the following
item (B):

	 	A	 	The principal of the loan shall be repaid in a lump on the maturity date of the
loan.
	 
	 	B	 	The principal of the loan shall be repaid by installments, and the amount and date
for repayment of each installment shall be listed out as below:
	 
	 	 	 	The amount of RMB 10,000,000 shall be repaid on November 30, 2009;
	 
	 	 	 	The amount of RMB 18,000,000 shall be repaid on October 31,
2010;
	 
	 	 	 	The amount of RMB 19,000,000 shall be repaid on October 31,
2011;
	 
	 	 	 	The amount of RMB 20,000,000 shall be repaid on October 31,
2012;
	 
	 	 	 	The amount of RMB 20,000,000 shall be repaid on October 31,
2013;
	 
	 	 	 	The amount of RMB 20,000,000 shall be repaid on October 31,
2014;

9

 

	 	 	 	The amount of RMB 20,000,000 shall be repaid on October 31, 2015;
	 
	 	 	 	The amount of RMB 16,000,000 shall be repaid on October 31, 2016;
	 
	 	 	 	The amount of RMB 7,000,000 shall be repaid on March 24, 2017.
	 
	 	 	 	In case the Lender adjusts the loan withdrawing plan, the repayment date for
each installment as agreed hereunder shall remain unchanged and the Borrower
shall pay off the principal of the loan on schedule.
	 
	 	C	 	Other repayment methods for the principal of the loan:           /          . 

	 	(2)	 	The Borrower shall, on the agreed repayment date and interest settlement date
hereunder, make full payment for the principal and interest of the loan hereunder. In
the event the Borrower fails to pay off the principal and interest on schedule, the
Lender shall be entitled to deduct the payable fees and principal and interest of the
loan from any account of the Borrower opened with the Lender or any other branch within
the internal system of the Lender in accordance with the order provided by relevant bank
accounting regulations and internal rules of the Lender.
	 
	 	(3)	 	In case the repayment date is not on the business day of the Lender, the repayment
date shall be postponed to the next business day of the Lender and such non-business day
shall be calculated into the actual days of using the loan. When repaying for the
principal and interest of the last installment of the loan, all interest shall be paid
off together with the principal, and shall not be bound by the interest settlement date
provided in Article 5 hereof.
	 
	 	(4)	 	In case the Borrower fails to repay the loan hereunder on schedule and requires
extension of the loan term, the Borrower shall officially submit a written extension
application to the Lender within fifteen (15) business days prior to the maturity date
of such installment of loan. After being approved by the Lender, both Parties shall
enter into a separate Loan Term Extension Contract as the supplemental contract to this
Contract.

Article 7 Security

	1.	 	The following contacts are security contracts of this Contract:

10

 

	 	(1)	 	Mortgage Contract of Industrial Bank with the contract number of Di
132009010094-1, the security type is mortgage and the security provider is
Pingnan County Wangkeng Hydroelectric Co., Ltd. 
	 
	 	(2)	 	Mortgage Contract of Industrial Bank with the contract number of Di
132009010094-2, the security type is mortgage and the security provider is
Pingnan County Wangkeng Hydroelectric Co., Ltd.
	 
	 	(3)	 	Pledge Contract of Industrial Bank with the contract number of Zhi
132009010094-1, the security type is pledge and the security provider is Pingnan
County Wangkeng Hydroelectric Co., Ltd. 

	2.	 	Prior to the execution and effectiveness of the security contracts hereunder/ the
completion of security procedures, the Lender shall be entitled to suspend its
performance of issuance obligations and other obligations under this Contract.

Article 8 Representations and Warranties by the Borrower

The Borrower is willing to make the following representations and warranties and shall
assume legal liabilities for the genuineness of the representations and warranties:

	1.	 	The Borrower is a legal person duly established and validly in existence according to
the laws and regulations of the People’s Republic of China, and has the full capacity
for civil acts. The Borrower warrants providing relevant certificates, permits,
credentials and other documents occasionally required by the Lender according to the
requirements of the Lender.

	2.	 	The Borrower has the full capacity to perform its obligations and responsibilities
under this Contract, and shall not be released from or waived of its repayment
responsibilities due to any instructions, alteration of financial conditions or
entering into any agreement with any other entities.

	3.	 	The Borrower has the full power, authorization and legal right to enter into this
Contact, has obtained all requisite internal approvals and authorizations or other
relevant procedures for entering into and performing this Contract, and has procured
and completed all requisite approvals, registrations, authorizations, consents, permits
or other

11

 

	 	 	relevant procedures from any governmental authority or other competent authorities for entering
into and performing this Contract. All requisite approvals, registrations, consents,
permits, authorizations and other relevant procedures requiring for entering into this
Contract shall keep complete, legal and valid.

	4.	 	Signing this Contract by the Borrower shall be in full compliance with the relevant
articles of association, internal decisions and resolutions of shareholders’ meeting
and meeting of board of directors. This Contact shall not conflict with or violate any
articles of association, internal decisions, resolutions of shareholders’ meeting and
meeting of board of directors and internal policies of the Borrower.
	 
	5.	 	Signing and fulfilling this Contact shall be based on the true intention expressed by
the Borrower. The above-mentioned signing and fulfilling of this Contact shall not
violate any laws, regulations, rules or provisions of the contracts which have binding
force on the Borrower. This Contract shall be legal, valid and enforceable, in the
event this Contract would be deemed invalid due to the Borrower’s right defect when
signing and fulfilling this Contract, the Borrower shall immediately and
unconditionally compensate all losses incurred by the Lender.
	 
	6.	 	All documents, financial statements and other materials provided by the Borrower to
the Lender under this Contract are authentic, complete, accurate and valid, and the
Borrower shall continue to keep the various financial indexes as required by the
Lender.
	 
	7.	 	The Borrower agrees that the loan business hereunder shall be bound by the
regulations, traditions and practices of the Lender, and shall be interpreted by the
Lender.
	 
	8.	 	In the event the Borrower fails to perform its obligations according to the provisions
hereof, the Borrower hereby authorizes the Lender to directly deduct the corresponding
amount from any account of the Borrower opened with the Lender or the other branches
within the internal system of the Lender.
	 
	9.	 	At any transaction stage after entering into this Contract, in the event the Borrower
has submitted any documents relating to specific transaction to the Lender for review,
the Borrower shall ensure the authenticity of the documents and the Lender shall only
make decisions concerning the apparent authenticity of the transaction documents. The
Lender shall not participate in or know about the specific transaction essence of the
Borrower,

12

 

	 	 	nor shall the Lender assume any liabilities arising therefrom.

	10.	 	The Borrower confirms that, except for the circumstances disclosed to the Lender in written
form, the Borrower has not concealed any of the following events from the Lender, which have
already occurred or will occur in the near future and the occurrence of which may cause the Lender
not to agree to issue the loan hereunder:

	 	(1)	 	Any debts or contingent debts undertaken by the Borrower, including but not limit to any
mortgage, pledge, lien and other debts created on the assets or income of the Borrower which have
not been disclosed to the Lender;
	 
	 	(2)	 	The Borrower or major management of the Borrower has been involved in material disciplinary
violations, illegal actions or claimed for compensations;
	 
	 	(3)	 	The Borrower has breached the contract on creditor’s right and debt concluded between the
Borrower and its other creditors;
	 
	 	(4)	 	There have been no lawsuits, arbitrations or administrative lawsuits concerning the Borrower or
the property of the Borrower which have ever occurred, or have not been settled, or may occur in
the future to the knowledge of the Borrower, and there have been no liquidations, cessation of
business or other similar procedures concerning the Borrower whether have been initiated by the
Borrower or the third party.
	 
	 	(5)	 	Other circumstances which may influence the Borrower’s financial conditions or debt
repayment ability.

	11.	 	The Borrower undertakes that the loan shall be only used for the purpose as agreed
hereunder, and shall not be misappropriated for other purpose or be used for the purpose
violating the purpose agreed hereunder. The Borrower undertakes to accept and cooperate in
the supervision, inspection, stocktaking carried out by the Lender concerning the loan
usage, production and operation, financial activities, stock and supplies, assets and
liabilities, bank deposit, cash inventory and other conditions of the Borrower or other
requirements deemed by the Lender as necessary and appropriate.
	 
	12.	 	To provide full and valid security which have been accepted by the Lender or other security
deemed by the Lender as appropriate and acceptable.
	 
	13.	 	The Borrower shall not reduce its registered capital by any means. Without prior written
consent of the Lender, the Borrower shall not transfer whole or part of the debt hereunder

13

 

	 	 	to any third party. Before the debt hereunder has been fully paid off, without prior
written consent of the Lender, the Borrower shall not repay other debts owed to other
creditors ahead of schedule.

	14.	 	In case the Lender is forced to be involved in the disputes with the Borrower and any third
party due to any lawsuits, arbitrations or other disputes between the Lender and the Borrower or
any third party relating to the Borrower which have been caused by the Lender’s performance of its
obligations hereunder, all litigation fees, arbitration fees, attorney fees and any other fees paid
by the Lender shall be born by the Borrower.
	 
	15.	 	Any settlement business hereunder shall be conducted by the settlement account opened by the
Borrower with the Lender.

Article 9 Rights and Obligations of Both Parties

	I.	 	Rights and Obligations of the Lender
	 
	(I)	 	Rights of the Lender
	 
	1.	 	The Lender shall be entitled to require the Borrower to repay the principal and
interest of the loan on schedule;
	 
	2.	 	The Lender shall be entitled to require the Borrower to provide all materials relating
to the loan;
	 
	3.	 	The Lender shall be entitled to get acquainted with the production, operation and
financial conditions of the Borrower;
	 
	4.	 	The Lender shall be entitled to supervise the Borrower to use the loan for the purpose
as agreed hereunder;
	 
	5.	 	On the premise that the loan hereunder is used for project construction, the Lender
shall be entitled to supervise the progress of the project and put forward suggestions
and requirements;
	 
	6.	 	The Lender shall be entitled to deduct the principal and interest of the loan and
other expenses and fees directly from the account of the Borrower;
	 
	7.	 	The Lender shall be entitled to transfer whole or part of the Creditor’s Right
hereunder and the secured rights and interests to any third party at any time and shall
not need to get

14

 

	 	 	consent from the Borrower. In the event the Lender transfers its Creditor’s Rights and
secured rights and interests hereunder, the Borrower shall continue to assume its all
obligations under this Contract;

	8.	 	In the event the Borrower fails to repay the principal and interest of the loan
according to the provisions of this Contract or fails to implement the payment for
principal and interest, the Lender may make disclosure via the Credit Investigation
Center of People’s Bank of China or news and media, and take recovery, litigation or
arbitration and other legal measures.
	 
	9.	 	The Lender shall be entitled to take relevant appropriate measures concerning the
Borrower according to its obligations provided by the mandatory and instructional
regulations or guidelines issued by the bank administration and supervision authority
and the guidelines and practices of national and local bank industry associations,
without the need of notifying the Borrower in advance, nor the need of procuring prior
written consent from the Borrower.
	 
	10.	 	The Lender shall be entitled to enjoy the rights provided by laws, regulations and rules or
other rights stipulated herein.

(II) Obligations of the Lender

	1.	 	To issue loan to the Borrower in accordance with this Contract;
	 
	2.	 	To keep the debts, finance, production and operation conditions of the Borrower
confidential, unless otherwise regulated, instructed or ordered by laws, regulations or
judicial authorities and supervisory authorities.

II. Rights and Obligations of the Borrower

(I) The Borrower shall enjoy the following rights:

	1.	 	The Borrower shall be entitled to withdraw and use the full amount of loan according
to this Contract;

	2.	 	The Borrower shall be entitled to require the Lender to undertake confidentiality
obligation for the materials provided by it to the Lender according to this Contract.

15

 

(II) Obligations of the Borrower

	1.	 	To accurately and faithfully provide the documents and materials which have been
required by the Lender, and all information concerning the account opening bank,
account number and the balance of deposits and loans, and cooperate with the Lender in
investigations, examinations and inspections;
	 
	2.	 	To accept the supervision of the Lender concerning its usage of loan and relevant
production, operation and financial activities. When the loan hereunder is used for
project construction, cooperate in the Lender’s supervision and inspection on the
project and timely take appropriate disposition measures concerning the suggestions and
requirements put forward by the Lender;
	 
	3.	 	The Borrower shall use the loan for the purpose as agreed hereunder, and shall not
misappropriate such loan for other purpose, such as in stock investment, in speculation
of marketable securities, futures and real estates, etc. The Borrower shall not use
such loan to participate in inter-enterprise debit and credit activities and other
illegal activities restricted by the State, nor divert or misappropriate the loan by
other means;
	 
	4.	 	The Borrower shall fully repay the principal and interest of the loan on schedule
according to this Contract;
	 
	5.	 	Without the prior written consent of the Lender, the Borrower shall not transfer whole
or part of the debt hereunder to any third party;
	 
	6.	 	The Borrower shall bear all expenses relating to this Contract, including without
limitation the fees of notarization, appraisal, valuation, registration and the
expenses for the Lender to realize its Creditor’s Right;
	 
	7.	 	The Borrower shall not reduce its registered capital by any means;
	 
	8.	 	In case of the occurrence of any of the following circumstances, the Borrower shall
procure a prior written consent from the Lender, and as required by the Lender,
actively implement safeguard measures for making timely and full repayment for the
principal and interest of the loan and other fees hereunder, otherwise, the Borrower
shall be deemed as breaching this Contract, and the Lender shall be entitled to recover
the loan according to Article 11 hereof or take other measures:

	 	(1)	 	The total amount of loan from banks and other third parties exceeds RMB      /     , or

16

 

	 	 	 	the total amount of debts exceeds RMB      /     , or the total amount of loan
provided to third parties exceeds RMB      /     , or the total amount of security
provided for the debts of third parties exceeds RMB      /     ;
	 
	 	(2)	 	Alteration of material assets and property rights, and adjustment of operation mode and
main management personnel ( including but not limited to entering into joint venture and
cooperation contracts with foreign investors or investors from Hong Kong, Macao and Taiwan;
revocation, closedown, cessation of operation and production transition; spin-off, coalition,
merger, being acquired, acquisition; restructuring, establishment of and transformation to
joint stock companies; purchase the stock or invest in joint stock companies or investment
companies with buildings, equipments and facilities and other fixed assets or trademark,
patent, proprietary technology, land use right and other intangible assets; carry out property
rights and operation rights transactions by way of leasing, contracting, joint-cooperation and
trusteeship; alterations of main management personnel, etc.);
	 
	 	(3)	 	In case of alterations of shareholders of the Borrower (including but not limited to share
transfer, trusteeship, escrow, pledge, etc.), the Borrower shall timely notify the Lender; in
case of alteration of ___percent of the equity interest, the prior written consent of the
Lender shall be procured.

	9.	 	In case of the occurrence of any of the following circumstances, the Borrower shall
immediately inform the Lender, and actively implement the safeguard measures for making timely
and full repayment for the principal and interest of the loan and other fees hereunder:

	 	(1)	 	Occurrence of material financial losses, assets losses or other financial crisis;
	 
	 	(2)	 	Cessation of business, being revoked or cancelled of business license, applying or being
applied for bankruptcy, dissolution, etc.;
	 
	 	(3)	 	Material crisis of the operation and finance of its controlling shareholders or other
affiliated companies, which has influenced its normal operation;
	 
	 	(4)	 	Alterations of the legal representative, directors or major senior management of the
Borrower, which have influenced its normal operation;
	 
	 	(5)	 	Material related transactions between the Borrower and its controlling shareholders

17

 

	 	 	 	or other affiliated companies, which have influenced its normal operation;

	 	(6)	 	Any lawsuit, arbitration or criminal, administrative penalties which have caused material
adverse effect on its operation or financial conditions;
	 
	 	(7)	 	Other material events which may influence its repayment abilities.

	10.	 	The Borrower warrants keeping the floating assets and net assets value during the loan term
within the scope of ___, the liability ratio on assets within the scope of ___, and the assets
floating ratio within the scope of ___.
	 
	11.	 	As for the collection letter or collection document mailed off or delivered in other means by
the Lender, the Borrower shall sign off and return the receipt to the Lender.
	 
	12.	 	The Borrower’s obligations hereunder shall be independent, and shall not be influenced
by the relationship between any Party hereto and any third party, unless otherwise required
by this Contract.

Article 10 Prepayment for the Loan

	1.	 	In the event the Borrower requires prepaying for part or whole of the principal and
interest of the loan, it shall notify the Lender in written form with thirty
(30) Working Days in advance, and shall be approved by the Lender in written form.
The Lender shall be entitled to require the Borrower to pay 5 of the prepaid
part of loan as compensatory fund.

	2.	 	Upon being approved by the Lender, after prepaying part of the loan, the Borrower
shall consult with the Lender concerning the repayment terms, repayment time and
repayment amount hereafter. As for the prepaid principal and interest of loan, the
interest shall be calculated by the actual usage term and the agreed interest rate. The
Lender shall not make any adjustment on the interest which has already been paid before
the prepayment.

	3.	 	In the event the Borrower makes prepayment for the loan hereunder but without the
prior written consent of the Lender, the Lender shall be entitled to calculate the
interest by the loan term and interest agreed hereunder.

Article 11 Recovery of the Loan Ahead of Schedule

18

 

	1.	 	In case any of the following events occurs to the Borrower or security provider (namely the
guarantee or mortgager or pledgor under this Contract), the Lender shall be entitled to
unilaterally decide to cease issuing the loan hereunder which has not been withdrawn, and
recover part or whole of the loan ahead of schedule. As for the loan repaid by installments,
in case the Lender recovers certain installment of the loan according to this Contract, the
other undue installments may be deemed as being mature ahead of schedule:

	 	(1)	 	Providing false materials or concealing important operation and financial facts, or any
certificates and documents provided to the Lender or any of the representations and warranties
in Article 8 hereof is proved to be unreal, inaccurate, incomplete or intentionally
misleading;
	 
	 	(2)	 	Without being consented by the Lender, arbitrarily changing the loan purpose,
misappropriating the loan or using such loan in illegal or rules violating transactions;
	 
	 	(3)	 	Making use of false contracts concluded with related parties, to discount or pledge bills
receivable, accounts receivable or other Creditor’s Rights without actual trade background for
withdrawing bank capital or credit;
	 
	 	(4)	 	Refusing to accept the supervision and inspection carried out by the Lender concerning its
loan usage conditions and relevant operational and financial activities;
	 
	 	(5)	 	The occurrence of material merger, acquisition and restructuring, etc., which the Lender
deems may influence the safety of the loan;
	 
	 	(6)	 	By way of related transactions, to intentionally evade from repayment for the Creditor’s
Rights of the Lender;
	 
	 	(7)	 	Deterioration of credit status, obvious decrease of repayment ability (including contingent
debts);
	 
	 	(8)	 	Cross defaults provided in Article 14 hereof has happened to the Borrower or the Borrower’s
related enterprises and security providers or the security provider’s related enterprises;
	 
	 	(9)	 	The Borrower fails to make repayment on schedule for the principal, interest and fees of any
installment of the loan hereunder;
	 
	 	(10)	 	The Borrower ceases the repayment for its debts, or is unable or expresses to be

19

 

	 	 	 	unable to repay the due debts;
	 
	 	(11)	 	The Borrower suffers from cessation of business, suspension of business, being announced
to be bankrupt, dissolution, being revoked of business license, being terminated, being
involved in material economic disputes or deterioration of financial conditions, etc.;
	 
	 	(12)	 	The Borrower fails to implement the obligations provided in Article 9 and Article 12 and
other obligations hereunder, or the security provider fails to implement the obligations
stipulated in the security contract;
	 
	 	(13)	 	The value of mortgaged property or pledged property has suffered or may suffer from
obvious reduction, or the pledged right must be exercised before the maturity date of the loan;
	 
	 	(14)	 	Other events jeopardizing or damaging or may jeopardize or damage the rights and interest
of the Lender.

	2.	 	In case of recovery of the loan ahead of schedule, the Lender shall be entitled to
take relevant measures according to the provisions of Clause 2, Article 13 hereunder.

Article 12 The Borrower’s Obligation to Disclose Material Transactions and Material Events to the
Lender

In case of the occurrence of any of the following events, the Borrower shall make timely
disclosure to the Lender in written form, and in the meanwhile, cooperate with the Lender
upon its request to take safeguard measures, make repayment or implement the repayment of
debts:

	1.	 	The Borrower shall timely report to the Lender in written form concerning the material
transactions or material events happened to the Borrower;

	2.	 	In case the Borrower is a group client, the Borrower shall timely report to the Lender
the related transactions amount to over 10% of the net assets of the Borrower, which
shall include but not limited to:

	 	(1)	 	incidence relations between the parties to the transaction;
	 
	 	(2)	 	project and nature of the transaction;

20

 

	 	(3)	 	transaction amount or relevant proportion;
	 
	 	(4)	 	Pricing policy (including the transactions at no price or at symbolic price).

	3.	 	Within the valid term of this Contract, in the event the Borrower intends to carry out
share transfer, restructuring, coalition, spin-off, stock transformation, joint
venture, cooperation, joint operation, contracting, leasing, alteration of business
scope and registered capital, transfer of material assets or contingent debts, etc., or
the Borrower intends to carry out other actions which may influence or seriously
influence its liability undertaking abilities, the Borrower shall inform the Lender in
written form with thirty-calendar-days in advance.

	4.	 	In case the Borrower suffers from cessation of business, suspension of business, being
announced to be bankrupt, dissolution, being revoked of business license, being
terminated, deterioration of financial status or being involved in material economic
disputes, or the Borrower suffers from any material events which may influence or
seriously influence its liability undertaking abilities, the Borrower shall inform the
Lender in written form within seven (7) calendar days after the occurrence.

	5.	 	In case the Borrower or any third party suffers from material lawsuits or
arbitrations, which may influence or seriously influence its liability undertaking
abilities, the Borrower shall inform the Lender in written form within seven (7)
calendar days after receiving relevant notice.

	6.	 	The Borrower shall warrant that it will make use of legal disputes with any third
party (including basic trade contract) to damage the Creditor’s Right of the Lender.

Article 13 Liabilities for Breach of Contract

	1.	 	After this Contract has come into effect, the Borrower and the Lender shall fulfill
its obligations under this Contract, and in case any Party fails to implement or
partially implements its obligations hereunder, the defaulting Party shall assume
relevant liabilities for breach of contract.

	2.	 	In case the Borrower fails to implement the provisions of any Article hereof, the
Lender shall be entitled to take the following measures:

21

 

	 	(1)	 	Rectifying the breach of contract within a specified time limit;
	 
	 	(2)	 	Ceasing issuing the loan which has not been issued hereunder;
	 
	 	(3)	 	Unilaterally deciding whole or part of the debts are due ahead of schedule;
	 
	 	(4)	 	Unilaterally terminating this Contract, require the Borrower to repay the principal and
interest for the due or undue loans, and making payment or compensation for relevant fees;
	 
	 	(5)	 	In case the loan is overdue, requiring the Borrower to pay default interest for overdue
payment; in case the Borrower misappropriates the loan, to require the Borrower to pay default
interest for misappropriation; or require the Borrower to pay compound interest for unpaid
interest;
	 
	 	(6)	 	Requiring the Borrower to add or replace the guarantor, mortgaged property, pledged property or
pledged right;
	 
	 	(7)	 	Implementing or realizing the right under the security relating to the loan;
	 
	 	(8)	 	To deduct the principal and interest of the loan from any account of the Borrower in the Lender
(except the account for housing provident fund, trade union fees and other public welfare), or
entrust the account opening bank of the Borrower to deduct the principal and interest of the loan
from such account, including but not limited to the principal and interest of the loan and other
fees provided hereunder. In case the currency in such accounts is different from the loan currency
of the Lender, the Lender shall be entitled to convert such currency into the loan currency for
repayment of the principal and interest at the exchange price quotation for purchasing foreign
exchange at the date of deduction.
	 
	 	(9)	 	Bringing a lawsuit or arbitration to require the Borrower to make repayment for the principal
and interest of the loan, and the fees and expenses incurred by the Lender due to the realization
of Creditor’s Rights shall be born by the Borrower;
	 
	 	(10)	 	The Lender shall be entitled to detain, lien or take other measures deemed by the Lender as
appropriate on any movable assets, real estates, or tangible assets or intangible assets of the
Borrower which have been controlled or occupied by the Lender;
	 
	 	(11)	 	Other measures provided by laws and regulations, or the provisions of this Contract,

22

 

	 	 	 	or have been deemed by the Lender as appropriate.

	3.	 	In the event the Lender fails to issue the loan on the agreed date and in the agreed
amount, due to which the Borrower has suffered from losses, the Lender shall compensate
for the direct economic losses arising therefrom. However, as for the foreseeable or
unforeseeable indirect losses incurred by the Borrower, the Lender shall not compensate
in any case.

	4.	 	In case any of the following events occurs to the security provider hereunder (namely, the
guarantor, mortgagor, pledgor), the Lender shall be entitled to take measures according to
item 2 of this Article:

	 	(1)	 	The guarantor fails to implement the provisions of the Guaranty Contract, or the credit
status deteriorates, or occurrence of other events which may damage the security ability;
	 
	 	(2)	 	The mortgagor fails to implement the provisions of the Mortgage Contract, or intentionally
damage the mortgaged property, or the value of mortgaged property may decrease or have
obviously decreased; or other events which may damage the Lender’s right to the mortgage;
	 
	 	(3)	 	The pledgor fails to implement the provision of the Pledge Contract, or the value of the
pledged property has decreased or may obviously decrease, or the pledged right must be
realized before the repayment of the loan, or other events which may damage the Lender’s right
to the pledge.

Article 14 Cross Breach of Contract

In case any of the following circumstances occurs to the Borrower or the related enterprises
of the Borrower and the mortgagor or the related enterprises of the mortgagor, it shall be
considered as a simultaneous breach of this Contract by the Borrower, the Lender is entitled
to get the loan back in advance in accordance with the provisions of Article 11 hereof and
require the Borrower to undertake the obligation of such breach in accordance with the
provisions of Article 13 hereof:

	1.	 	Any breach or possible breach of the regulations provided for any loan, financing or debt

23

 

	 	 	or the declaration of repayment of such loan, financing or debt in advance;

	2.	 	Any failure or possible failure to perform any security or the similar obligations;

	3.	 	Any failure or possible failure to perform, or breach or possible breach of the legal
documents or contracts in connection with the debt security or similar obligations;

	4.	 	Any occurrence or possible occurrence of the insolvent condition for the due debt or
due loan/financing;
	 
	5.	 	The declaration or possible declaration of bankruptcy through legal procedures;
	 
	6.	 	Any transfer of its assets or property to the other creditors;

	7.	 	Other circumstances that threaten the safety of the principal or interest under this
Contract.

Article 15 Continuity of the Obligations

All the obligations of the Borrower hereunder shall be continuous, which shall be binding on
its successor, agency, receiver, transferee and the entity after the merger, structure or
name alteration of the Borrower with complete and equal force.

Article 16 Acceleration of the Principal, interest and fees

The Borrower and the mortgagor agree, in case of any failure to perform the representations
and guarantees provided in Article 8 hereof, or any obligation under this Contract, the
Lender is entitled to decide the acceleration of any other obligation of the Borrower
hereof, including the repayment of all the due or undue principal, interest (including
default and compound interest) and the corresponding fees and costs of the loan hereof.

Article 17 Arrangement of the Subrogation

The Borrower hereby specifically represents that, in the event it breaches the Contract or
does not repay the due debt, including the principal, interest and fees, without sufficient
property to repay the debt, the Lender is entitled to the subrogation of any Creditor’s
Right, accounts

24

 

receivable and other interest for the property of any third party owned by the Borrower.

Article 18 Arrangement for Offset

The Lender is entitled to deduct the fund in any account of the Borrower to pay off the debt
directly if the Borrower or the mortgagor fails to pay off the due debt, or the debt becomes
due in advance as a result of the breach of the provisions hereof. Upon the deduction of
the fund from the account of the Borrower, if the currency in the account is not the same as
the currency of the main debt, the exchange buying rate quotation announced by the Lender on
the deduction date shall be adopted.

Article 19 Applicable Law, Jurisdiction and Dispute Resolution

	1.	 	The establishment, effectiveness, performance, dissolution, interpretation and dispute
resolution, etc. shall be governed by the laws of People’s Republic of China.

	2.	 	Any dispute in connection with this Contract shall be resolved through friendly
consultation between the Borrower and the Lender; if no agreement is entered into
through friendly consultation, both Parties agree to adopt the first method as below
for resolution.

	 	(1)	 	To file a lawsuit with the local people’s court where the Lender is located with the
lawsuit fees and the reasonable legal fees and other costs of the other party hereto
during the lawsuit, including, but not limited to, the expense for the preservation of
the property, travel fees, the notarization & authentication costs, translation expense,
valuation & auction costs undertaken by the losing party.
	 
	 	(2)	 	To submit such dispute to      /      Arbitration Center for arbitration in
accordance with its prevailing valid arbitration rule. The award of such arbitration
shall be final and binding on both Parties. The arbitration place shall be      /     . The arbitration fees and the reasonable legal fess and other costs of the other
party hereto during the arbitration, including, but not limited to, the expense for the
preservation of the property, travel fees, the notarization & authentication costs,
translation

25

 

	 	 	 	expense, valuation & auction costs shall be undertaken by the losing party.

	 	(3)	 	Other methods:           /          . 

	3.	 	During the lawsuit or arbitration, the other parts not involved in the dispute hereof
shall still be performed.

Article 20 Exchange of Documents, Communication and Notices

	1.	 	Any exchange of documents, communication and notice under this Contract shall be made
in writing and delivered to the other Party hereto in accordance with the address,
telex number or other contact methods provided in this Contract.

	2.	 	In case of any alteration of the above-mentioned contact methods of any Party hereto,
the alteration shall be notified to the other Party without any delay through any
practicable method. In the event that the other Party delivers any document, message
or notice to the original contact address due to the delayed notice, all consequences
shall be undertaken by the Party responsible for notice.

	3.	 	All the documents, communication and notices shall be deemed to be delivered on the
following dates if they are sent to the above-mentioned contact address:

	 	(1)	 	In case of
mail, the fifth working day after it is sent by registration;
	 
	 	(2)	 	In case of telex, the
date upon the receipt of the feedback confirmation;
	 
	 	(3)	 	In case of personal delivery,
the date upon the signature of the recipient.

	4.	 	Both Parties agree that the official stamp of the unit, the stamp of the office, the
financial stamp, the contract stamp, the stamp for sending and receipt, and the stamp
for the credit and loan business, etc. would be regarded as the valid stamp for the
exchange of documents, communication and notices between the Parties hereto. And all
staff of the Borrower would be the authorized recipient of the exchange documents,
communication and notices.

Article 21 Validity of the Contract and Miscellaneous

	1.	 	This Contract shall become effective upon the signing or affixing the official stamps of
both Parties.

26

 

	2.	 	During the valid term of this Contract, any tolerance and grace period for the
Borrower or the mortgagor, or the delayed exercise of the entitlements or interests
hereunder by the Lender shall not impair, affect or restrict the right of the Lender to
exercise such entitlement or interest in accordance with the stipulations of relevant
laws and regulations and this Contract, which shall not be regarded as a waiver of such
entitlement or interest by the Lender, and not affect any obligations of the Borrower
hereof.

	3.	 	In case of any illegality, invalidity or un-enforcement of any Article hereof in any
aspect at any time, the legality, validity or enforcement of the other Articles hereof
shall not be affected or impaired.

	4.	 	The sub-titles in this Contract are inserted for convenience only, which shall not be
used for the interpretation of this Contract or other purposes.

	5.	 	The appendices hereto shall constitute the integral part of this Contract and have the
same legal effect as the formal text of this Contract.

	6.	 	This Contract is executed in five (5) counterparts, and each of the Borrower,
the Lender and ___holds one (1) counterpart with the same legal effect.

Article 22 Notarization and Enforcement

	1.	 	In case of any notarization requirement by the Lender, this Contract shall be
notarized in the public notary agency appointed by the State.

	2.	 	The notarized Contract shall be enforceable, in the event that the Borrower fails to
pay off the debt or any condition stipulated or provided in the laws and regulations or
this Contract for the Lender to exercise its Creditor’s Right is occurred, the Lender
is entitled to directly apply for enforcement to the competent people’s court.

Article 23 Supplemental Provisions

27

 

	 	 	 
	The Lender (official stamp):

	 	The Responsible Person or Legal Representative
	 
	 	 
	 

	 	          (signature)
	 
	 	 
	Industrial Bank Co., Ltd., Ningde Branch                          Wang Cheng’an
	 
	 	 
	 

	 	March 24,2009
	 
	 
	 	 
	The Borrower (official stamp):

	 	The Person in Charge or Legal Representative
	 
	 	 
	 

	 	          (signature)
	 
	 	 
	Pingnan County Wangkeng Hydroelectric Co., Ltd.        
        
          John D. Kuhns
	 
	 	 
	 

	 	March 24,2009

28

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}]]