Document:

EX-10.16

Exhibit 10.16

CONTRACT ON TRANSFER OF 10% EQUITY INTERESTS

OF

SANMING ZHONGYIN BANZHU HYDROELECTRIC CO., LTD.

This Contract was executed by the following Parties on January 30, 2009 in Sanming City of
Fujian Province.

Party
A: Sanming Ruifeng Economic Technological Development Ltd.

Address:
Building No. 160, Qianlong New Village, Xinshi North Road, Sanming City

Legal Representative: Li Jian Min

Party B: China Hydroelectric Corporation (Hong Kong) Limited

Address: 41st Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong

Authorized Representative: John D. Kuhns

Party A agrees to transfer the 10% of the equity interests of Sanming Zhongyin Banzhu
Hydroelectric Co., Ltd. (hereinafter referred to as “Banzhu Company”) held by it to
Party B, after friendly consultation and in accordance with relevant national laws and
regulations and the relevant provisions of the Articles of Association of Banzhu
Company, etc., Party A and Party B have reached agreement on the matters in relation to
the transfer and acquisition of such equity interests, and hereby execute this Contract
as follows:

I Transfer and Acquisition of the Equity Interests

The transferred equity interests under this Contract shall refer to the 10% of the
equity interests of Banzhu Company which is legally held by Party A; Party A agrees to
transfer such equity interests to Party B and Party B agrees to acquire such equity
interests. After the transfer of such equity interests, Party B will hold 10% of the
equity interests of Banzhu Company.

II Transfer Price and Payment

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	2.1	 	Price for the Transferred Equity Interests
	 
	 	 	Both Party A and Party B confirm that, the total price for the above-mentioned transferred
(acquired) equity interests shall be RMB 17,000,000.
	 
	2.2	 	Payment
	 
	 	 	Party B shall remit the US Dollars in the amount equivalent to RMB17,000,000 to
the bank account designated by Party A as the price for the transfer of the said
equity interests within three (3) days commencing from the date when this
Contract is approved by Fujian Provincial Department of Foreign Trade and
Economic Co-operation, and the relevant procedures concerning the foreign
exchange bookkeeping and settlement shall be jointly taken care of by both Party
A and Party B.

III Registration for the Equity Interest Alteration

After the effectiveness of this Contract upon the procurement of the approval, Party A
and Party B shall be jointly responsible for going through the procedures for the
alteration registration of the transferred equity interests, and the related taxes and
fees arising out of the transfer (acquisition) of the said equity interests shall be
borne by the respective Party pursuant to relevant regulations. The procedures for the
alteration registration of the transferred equity interests shall be completed within
thirty (30) days commencing from the date when this Contract is approved by Fujian
Provincial Department of Foreign Trade and Economic Co-operation.

IV Waiver of Pre-emptive Right by Other Shareholders

The transfer of the above-mentioned equity interests has been approved by the other
shareholders of Banzhu Company before this Contract takes effect, which shall be deemed
as the waiver of the pre-emptive right over the transferred equity interests by the
other shareholders.

V Undertakings and Warranties by Both Parties

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	5.1	 	Undertakings and Warranties by Party A

	 	5.1.1	 	Party A is an enterprise duly established according to the laws and
regulations with a status of independent legal person; it shall adopt the legal
and valid resolution that approves the transfer of the equity interests under
this Contract pursuant to the relevant laws and its articles of association, and
be responsible for the submission of relevant documents and resolutions.
	 
	 	5.1.2	 	Party A warrants that, the transferred equity interests under this
Contract shall be, upon the execution of this Contract, legally owned by Party A
in accordance with laws and its articles of association; Party A shall
completely and independently enjoy all rights and interests over the holding,
usage, control, disposal and right to profit, etc. of the transferred equity
interests.
	 
	 	5.1.3	 	There is no pledge or any other encumbrances on the transferred equity
interests from Party A to Party B. Party A warrants that the equity interests
acquired by Party B is not subject to any claim by any third party; in case of
any claim from any third party against Party B, Party A shall be responsible for
all legal and economic liabilities arising out of such claim, and compensate all
losses incurred therefrom by Party B.

	5.2	 	Undertakings and Warranties by Party B

	 	5.2.1	 	To make full payment of the transfer price in a timely fashion according to the
provisions of this Contract.
	 
	 	5.2.2	 	To go through the procedures concerning the examination and approval and
alteration registration with the competent industry and commence authority in
relation to the transfer of the said equity interests together with Party A.

VI Liabilities for Breach of Contract

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	6.1	 	Any Party to this Contract shall not unilaterally terminate this Contract after
the execution of this Contract; otherwise, the defaulting Party shall pay the
liquidated damages in the amount of RMB2,000,000 to the other Party within ten (10)
days and compensate all economic losses arising therefrom. In the event that the
economic losses cannot be determined, the amount paid as liquidated damages shall be
not less than 20% of the total transfer price provided in this Contract.
	 
	6.2	 	In the event that Party B makes payment of the transfer price beyond the time
limit, the interest at a rate of 0.08% per day of the overdue amount shall be paid to
Party A. If Party B could not make payment of the overdue amount within sixty (60)
days, Party A shall be entitled to put forward and report to the competent approval
authority, and terminate this Contract upon the procurement of relevant approval; in
addition, Party A shall be entitled to require Party B to assume the liabilities for
breach of contract pursuant to Article 6.1 hereof.
	 
	6.3	 	After the effectiveness of this Contract, in case that Party A does not cooperate
with Party B in going through the alteration registration procedures without cause or
the equity interests could not be transferred due to any reason of Party A, Party B
shall be entitled to put forward and report to the competent approval authority, and
terminate this Contract upon the procurement of the approval; in addition, Party B
shall be entitled to require Party A to immediately refund the paid transfer price by
Party B and to assume the liabilities for breach of contract pursuant to Article 6.1
hereof. The interest arising out of the overdue payment of the liquidated damages and
the paid transfer price shall be paid at a rate of 0.08% per day of the overdue
amount.

VII Miscellaneous

	7.1	 	The establishment, effectiveness, interpretation and performance of this Contract shall be
governed by the laws of the People’s Republic of China. Any dispute arising out of the

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	 	 	performance of this Contract between Party A and Party B shall be resolved
through consultation; if the dispute cannot be resolved through consultation,
either Party is entitled to submit the dispute to China International Economic
and Trade Arbitration Commission in Beijing for arbitration in accordance with
its then prevailing arbitration rules.
	 
	7.2	 	Matters not covered herein shall be determined by both Parties through
consultation, and any supplement or amendment to this Contract shall be made in
written form and come into effect upon the approval of the competent authority, which
shall have the same legal effect as this Contract.
	 
	7.3	 	This Contract is signed in eight (8) counterparts and each of Party A, Party B
and Banzhu Company holds two (2) counterparts, and the rest two (2) counterparts
shall be submitted for approval. Each counterpart shall have the same legal effect.

VIII Effectiveness of Contract

This Contract shall become effective upon being signed by the legal representatives or
authorized representatives and affixed with the official stamps of both Parties and has
been approved by the competent examination and approval authority.

(REMAINDER
OF PAGE INTENTIALLY LEFT BLANK)

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(PAGE FOR SIGNING AND SEALING ONLY)

Party A: Sanming Ruifeng Economic Technological Development Ltd.

          (Stamp)

Legal (or Authorized) Representative: Li Jian Min

Party B: China Hydroelectric Corporation (Hong Kong) Limited

          (Stamp)

Legal (or Authorized) Representative: John D. Kuhns

6EX-10.17

Exhibit 10.17

THE SUPPLEMENTAL AGREEMENT ON

MATTERS
REGARDING THE TRANSFER OF 10% EQUITY INTERESTS 

 OF

SANMING ZHONGYIN BANZHU HYDROELECTRIC CO., LTD.

This Agreement was executed by the following Parties on January 30, 2009 in Sanming City.

Party
A: Sanming Ruifeng Economic Technological Development Ltd.

Address: No. 160 Building, Qianlong New Village, Xinshi North Road, Sanming City

Legal Representative: Li Jian Min

Party
B: China Hydroelectric Corporation (Hong Kong) Limited

Address: 41st Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong

Authorized Representative: John D. Kuhns

Party
C: Sanming Ruifeng Hydropower Investment Co., Ltd.

Address: Building 160, Qianlong New Village, Xinshi North Road, Sanming City

Legal Representative: Yao Zheng Xiang

Party D: China Hydroelectric Corporation

Legal Address: 558 Lime Rock Road, Lime Rock, Connecticut 06039

Authorized Representative: John D. Kuhns

WHEREAS:

	1	 	Party C, Party D and Yong’an Ruifeng Hydroelectric Ltd. entered into the Share
Transfer Contract of Sanming Zhongyin Banzhu Hydroelectric Co., Ltd. (in relation
to 65% of the equity interest, hereinafter referred to as the “Share Transfer
Contract”) and its Supplemental Agreement (hereinafter referred to as the
“Supplemental Agreement”) on July

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	 	 	30, 2008, which stipulate that after the acquisition of the 65% of the equity
interest of Sanming Zhongyin Banzhu Hydroelectric Co., Ltd.(hereinafter referred to
as the “Banzhu Company”), Party D shall assume the relevant debts of Banzhu Company,
the detailed data and information please refer to Appendix I and II of the Share
Transfer Contract and the provisions of the Supplemental Agreement.
	 
	2	 	As for the matters in connection with the public bidding and listing for the
transfer of the 10% of the equity interests of Banzhu Company held by Fujian
Huadian Investment Co., Ltd., Party C and Party D entered into the Agreement on
the Acquisition of 10% of the equity interests of Sanming Zhongyin Banzhu
Hydroelectric Co., Ltd. on July 11, 2008 (hereinafter referred to as the
“Acquisition Agreement”), which stipulates that Party C acquires the total equity
interests of Banzhu Company held by Fujian Huadian Investment Co., Ltd. at first,
and then transfers the above-mentioned acquired equity interests to Party D, the
price of which shall be RMB10,000,000.
	 
	3	 	Party C authorized Party A to participate in the price bidding for the 10 % of
the equity interests of Banzhu Company held by Fujian Huadian Investment Co.,
Ltd., and Party A has fulfilled relevant bidding obligations on behalf of Party C
and has successfully acquired the 10% of the equity interests of Banzhu Company
held by Fujian Huadian Investment Co., Ltd.
	 
	4	 	As for the 10% of the equity interests of Banzhu Company, Party A and Party B
entered into the Contract on Transfer 10% Equity Interests of Sanming Zhongyin
Banzhu Hydroelectric Co., Ltd. on January 30, 2009.

After friendly and sufficient consultations, Party A, Party B, Party C and Party D
hereby, as for the relevant matters concerning the transfer of the 10% of the equity
interests of Banzhu Company held by Party A to Party B, enter into this supplemental
agreement to be observed by all Parties (hereinafter referred to as this “Agreement”):

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	I  	 	The Share Transfer Contact entered into by Party C, Party D and Yong’an Ruifeng
Hydroelectric Ltd. on July 30, 2008 stipulates that the capital contribution
obligation and liability of Party D shall be undertaken by Party B, and Party D
shall undertake the joint liability. The Acquisition Agreement stipulates that
Party A shall assume the joint liability for all the obligations and liabilities of
Party C.
	 
	II  	 	The Contract on Transfer 10% Equity Interests of Sanming Zhongyin Banzhu Hydroelectric
Co., Ltd. entered into by Party A and Party B on January 30, 2009 stipulates that
the transfer price for the equity interest shall be RMB 17,000,000; according to the
Acquisition Agreement, the transfer price for the equity interests shall be
RMB10,000,000. All Parties hereby confirm that the balance in the amount of
RMB7,000,000 shall be undertaken by Party C.
	 
	III  	 	Party B shall fully pay the transfer price for the equity interest in the amount of RMB
17,000,000 in accordance with the Contract on Transfer 10% Equity Interests of
Sanming Zhongyin Banzhu Hydroelectric Co., Ltd.. In addition, all Parties to this
Agreement confirm that, Party B shall take the capital contribution obligation of
Party D and complete the relevant payments provided in Appendix I and II of the
Share Transfer Contract; in light of the provisions of “the Settlement of the
Creditor’s Rights of the Subject Company” of the Supplemental Agreement, the balance
of the payment, namely, in the amount of RMB 7,000,000, shall be directly deducted
from the payables of Banzhu Company. The rights and obligations and the debts and
creditor’s rights between Party A and Party C shall be resolved by Party A and Party
C separately, in which Party B and Party D shall not be involved. The rights and
obligations and the debts and creditor’s rights between Party B and Party D shall be
resolved by Party B and Party D separately, in which Party A and Party C shall not
be involved.
	 
	IV  	 	All Parties to this Agreement must properly perform all their obligations hereunder.
In case of any loss incurred by Party A and Party C due to the non-performance or
incomplete performance of their obligations hereunder by Party B and Party D, Party B
and Party D shall

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	 	 	pay the liquidated damages in the amount of RMB1,000,000 and compensate the
corresponding losses. In case of any loss incurred by Party B and Party D due to the
non-performance or incomplete performance of their obligations hereunder by Party A
and Party C, Party A and Party C shall pay the liquidated damages in the amount of
RMB1,000,000 and compensate the corresponding losses. Party B and Party D shall be
jointly liable for their obligations hereunder, and Party A and Party C shall be
jointly liable for their obligations hereunder.
	 
	V  	 	The establishment, effectiveness, interpretation and performance of this Agreement
shall be governed by the laws of the People’s Republic of China. Any dispute arising
out of the performance of this Agreement by all Parties shall be resolved through
friendly consultation; if the dispute cannot be resolved through consultation, any
Party is entitled to submit the dispute to China International Economic and Trade
Arbitration Commission in Beijing for arbitration in accordance with its then
prevailing arbitration rules.
	 
	VI  	 	Upon being signed and affixed with the official seal of all Parties, this Agreement
shall become effective simultaneously with the Contract on Transfer 10% Equity
Interests of Sanming Zhongyin Banzhu Hydroelectric Co., Ltd. In case of any
inconsistency between the provisions of this Agreement and those of the Contract on
Transfer 10% Equity Interests of Sanming Zhongyin Banzhu Hydroelectric Co., Ltd, the
former shall prevail.
	 
	VII  	 	As for matters not covered herein, all Parties to this Agreement may enter into
supplemental agreements separately, which shall have the same legal effect as this
Agreement.

IN WITNESS WHEREOF, this Agreement is signed in eight (8) counterparts and each Party
hereto holds two (2) counterparts.

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(SIGNATURE AND SEAL PAGE ONLY)

Party A: Sanming Ruifeng Economic Technological Development Ltd.

          (Stamp)

Representative: Li Jian Min

Party B: China Hydroelectric Corporation (Hong Kong) Limited

          (Stamp)

Representative: John D. Kuhns

Party C: Sanming Ruifeng Hydropower Investment Co., Ltd.

          (Stamp)

Representative: Yao Zheng Xiang

Party D: China Hydroelectric Corporation

          (Stamp)

Representative: John D. Kuhns

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