Document:

EXHIBIT 10.3

 

	
             
 	
            Trust Agreement
 

 

Trustor: Songyuan City North East Petroleum Technical Services Ltd. 

Trustor is the person who is benefited from the contract, is called beneficiary.

Address: Comprehensive office at Zhanjiang Road, Qingnian Avenue, Economic and Technological Development Zone, Songyuan City, Jilin Province.

Assignee: Bing Wu Wang

ID card No.:410928611116961

According to the rule of correlative law and legislation of general rule of civil law of PRC and entrust law of PRC. The beneficiary and the assignee consulted friendly on the equal base and concluded the entrust contract. Its contents are as follows:

 

Chapter One; Entrust

 

	
            
			 
 	
            
			5.
 	
            
			The beneficiary agreed to entrust assignee holding 10% shares (called entrusted shares bellow the sentence) of Yuqiao Oil and Gas Developing Co. Ltd in Songyuan City instead of himself and manage it.
 

	
            
			 
 	
            
			6.
 	
            
			The assignee accepted the beneficiary’s entrustment and held the entrusted shares instead of him.
 

 

Chapter Two; Assignee’s duty

 

	
            
			 
 	
            
			15.
 	
            
			Entrusted Declaration shows that the whole rights, interests and bonus (including production by himself or non-production) of entrusted shares should belong to the beneficiary unconditionally.
 

	
            
			 
 	
            
			16.
 	
            
			The assignee guarantee that he will obey the written instruction of the beneficiary and cooperate unconditionally to deal with the entrusted shares, interests and
			bonus.
 

 

1

 

 

	
             
 	
            17.
 	
            The assignee should sign the credit contract according to the written instruction of the beneficiary and the beneficiary is the representative of the contract and exercise the voting right (including significant decision-making).
 

	
             
 	
            18.
 	
            According to the beneficiary’s demand, the assignee should notify all the information and data of Yuqiao Oil&Gas development of Co. and all information to the beneficiary which the shareholder should be known in time.
 

	
             
 	
            19.
 	
            The trustor has right to know the operation condition of Yuqiao Oil&Gas and the condition of income and expenses of financial affair and also has right to check and to duplicate the account papers and financial files.
 

	
             
 	
            20.
 	
            The assignee can not sell, exchange, lent, offset, pawn or handle the entrusted shares in any other way before getting the special written agreement from the beneficiary.
 

	
             
 	
            21.
 	
            The assignee can not plough back or cooperate or make a joint venture with others rely on the bonus from the entrusted shares without approval from beneficiary.
 

 

Chapter Three; The assignee’s consideration

 

The assignee knows that the beneficiary needs not to pay the consideration for entrusted shares which he held instead of beneficiary.

 

Chapter Four; Restrain any successor

 

The assignee restrains his any successor and assignee on the responsibility and duty of the contract.

 

Chapter Five; Entrust term of the contract

 

2

 

 

The entrust term of the contract is valid from the effective date of the contract to the date of the dismissal of Yu Qiao Oil &Gas development Co.

 

Chapter Six; The entrust will be terminated if one of the following circumstance exists:

 

	
             
 	
            7.
 	
            The aim of entrust has been come true;
 

	
             
 	
            8.
 	
            The party of entrust consults and makes an agreement;
 

	
             
 	
            9.
 	
            Add contract or not when the term is ended.
 

 

Chapter Seven: the responsibility of breach of contract

 

	
             
 	
            7.
 	
            If the assignee disobeys the aim of entrust to deal with the property of entrust or mismanage the entrusted affairs which lead to the loss of the trust property, then he should recover the entrust property as its original state or make compensation.
 

	
             
 	
            8.
 	
            If the assignee uses the entrust property to enlist interest for himself which lead to the loss of the trust property ,the assignee should bear the compensation responsibility .
 

	
             
 	
            9.
 	
            The assignee should undertake the duty for others’ debt if he violates managing duty or deals with entrust affair improperly.
 

 

Chapter eight: Application of law

 

Both assignee and beneficiary agree that the explanation of this contract is applicable. If there is no special or specific law item can be applicable, the contract should be explained and executed according to general rule of “Civil Law of PRC and “Trust Contract law of PRC” on the basis of the honest and creditable principle.

 

Chapter nine: Solution of controversy

 

3

 

 

If there is controversy in the process when the contract is being performed, it should be solved through consultation by each party. If it still can not be solved by consultation, they could agree to sue to the People’s court which has the jurisdiction right.

 

Chapter ten: The contract was signed on January 26, 2007, which has duplicate copy and each held by trustor(beneficiary)and the assignee.

 

	
            TRUSTOR:

 
 
	
            SONG YUAN NORTH EAST PETROLEUM TECHNICAL SERVICE CO., LTD.
 
	
             

By:
/s/ Hong Jun Wang                                                                                                                                                                                                                                     

Hong Jun Wang

Chairman of the board
 

 

ASSIGNEE: 

By: /s/ Bing Wu Wang                                       

Bing Wu Wang

 

 

 

 

4EXHIBIT 10.1

Dated  23 JANUARY                                                           2007

(1)   RIDGEWOOD UK LLC

(2)   ARBUTUS ENERGY LIMITED

(3)   RIDGEWOOD ROC 2003 LLC

(4)   RIDGEWOOD ROC II 2003 LLC

(5)   RIDGEWOOD ROC III 2003 LLC

(6)   RIDGEWOOD ROC IV 2004 LLC

(7)   MEIF LG ENERGY LIMITED

--------------------------------------------------------------------------------

Agreement

--------------------------------------------------------------------------------

For the sale and purchase

of the entire issued share capital of CLPE Holdings Limited and assets relating
to Ridgewood ROC Projects

Eversheds LLP             T  +44 (0) 845 497 1000
115 Colmore Row           F  +44 (0) 845 497 1900
Birmingham                DX  13004 Birmingham
B3 3AL                    www.eversheds.com

<PAGE>

                                    CONTENTS

Clause                                                                      Page

1   INTERPRETATION.............................................................1
2   SHARE SALE AND PURCHASE...................................................19
3   ASSET SALE AND PURCHASE...................................................20
4   CONSIDERATION.............................................................21
5   WORKING CAPITAL STATEMENT AND ROC RECEIVABLE..............................23
6   CONDITIONS................................................................25
7   COMPLETION................................................................30
8   BUSINESS CONTRACTS........................................................31
9   RECORDS AND ACCESS........................................................31
10  FUTURE ENQUIRIES AND ASSISTANCE...........................................31
11  WARRANTIES AND RELEVANT CLAIMS............................................32
12  TERMINATION...............................................................35
13  BREAK FEE.................................................................36
14  CONFIDENTIALITY...........................................................38
15  BUYER'S WARRANTIES AND COVENANTS..........................................40
16  POST-COMPLETION PROVISIONS................................................41
17  ANNOUNCEMENTS.............................................................42
18  COSTS.....................................................................42
19  NOTICES...................................................................43
20  ASSIGNMENT................................................................45
21  FURTHER ASSURANCE.........................................................46
22  RIGHTS OF THIRD PARTIES...................................................46
23  ENTIRE AGREEMENT..........................................................46
24  GENERAL...................................................................46
25  GOVERNING LAW AND JURISDICTION............................................47
26  COUNTERPARTS..............................................................47
27  EXECUTION.................................................................47
Schedules
1   The Share Sellers.........................................................48
2   Part 1....................................................................49
    Details of the Company....................................................49
    Part 2....................................................................49
    Part 3  Dormant Companies.................................................49
3   Part 1 - Share Warranties.................................................50
    SELLER....................................................................50
    ACCOUNTS AND RECORDS......................................................52
    CHANGES SINCE THE ACCOUNTING DATE.........................................52
    ASSETS....................................................................53
    PROPERTY..................................................................55
    ENVIRONMENTAL/HEALTH AND SAFETY (EHS) MATTERS.............................56
    CONTRACTS.................................................................60
    COMPLIANCE, DISPUTES......................................................64

<PAGE>

    Part 2 - ROC Warranties...................................................67
    SELLER....................................................................67
    ASSETS....................................................................67
    CONTRACTS.................................................................68
4   Taxation..................................................................72
    PART 1 - INTERPRETATION...................................................72
    PART 2 - TAX COVENANT.....................................................77
    PART 3 - TAX WARRANTIES...................................................88
    PART 4 - ROC BUSINESS ASSETS..............................................92
5   Completion Arrangements...................................................94
6   The Property.............................................................101
7   Limitations on the Sellers' liability....................................102
8   Sellers Obligations......................................................108
9   Working Capital Statement................................................111
10  Purchase Price Allocation................................................116
    ROC 1 Assets:............................................................116
    ROC 2 Assets:............................................................116
    ROC 3 Assets:............................................................116
    ROC 4 Assets:............................................................117
11  The ROC Business Contracts...............................................118
    PART 1 - ROC 1...........................................................118
    PART 2 - ROC 2...........................................................118
    PART 3 - ROC 3...........................................................118
    PART 4 - ROC 4...........................................................118
12  The Plant and Equipment..................................................119
    PART 1 - ROC 1...........................................................119
    PART 2 - ROC 2...........................................................119
    PART 3 - ROC 3...........................................................119
    PART 4 - ROC 4...........................................................119
13  Project Companies........................................................120
14  Adjustment to the Purchase Price a result in change of Interest Rates....121
    APPENDIX I...............................................................124
    Long Term Liabilities....................................................124

<PAGE>

THIS AGREEMENT is made on 23 JANUARY                                        2007

BETWEEN

(1)  RIDGEWOOD UK LLC a Delaware registered company whose registered office is
     at 947 Linwood Avenue, Ridgewood, New Jersey, 07450, USA ("Ridgewood");

(2)  ARBUTUS ENERGY LIMITED a company incorporated in Jersey with company number
     77281, whose registered office is at Charter Place, 23-27 Seaton Place, St
     Helier, Jersey, JE1 1JY, Channel Islands ("Arbutus");

(3)  RIDGEWOOD ROC 2003 LLC a Delaware registered company trading in the UK
     whose registered office is at 947 Linwood Avenue, Ridgewood, New Jersey,
     07450, USA ("ROC 1");

(4)  RIDGEWOOD ROC II 2003 LLC a Delaware registered company trading in the UK
     whose registered office is at 947 Linwood Avenue, Ridgewood, New Jersey,
     07450, USA ("ROC 2");

(5)  RIDGEWOOD ROC III 2003 LLC a Delaware registered company trading in the UK
     whose registered office is at 947 Linwood Avenue, Ridgewood, New Jersey,
     07450, USA ("ROC 3");

(6)  RIDGEWOOD ROC IV 2004 LLC a Delaware registered company trading in the UK
     whose registered office is at 947 Linwood Avenue, Ridgewood, New Jersey,
     07450, USA ("ROC 4"),

     (each a "Seller" and together the "Sellers"); and

(7)  MEIF LG ENERGY LIMITED a company registered in England and Wales with
     registered number 06048951 whose registered address is at Level 28,
     Citypoint, 1 Ropemaker Street, London EC2Y 9HD (the "Buyer").

OPERATIVE CLAUSES

1.   INTERPRETATION

     In this Agreement:

1.1  the following expressions have the following meanings unless inconsistent
     with the context:

     "Accounting Date"                  31 December 2005

     "Accounts"                         the audited balance sheet as at the
                                        Accounting Date and the audited profit
                                        and loss account for the financial year
                                        ended on the Accounting Date of each
                                        Group Member including, in the case of
                                        the Company, the audited consolidated
                                        balance sheet as at that date, and the
                                        audited consolidated profit and loss
                                        account and the audited consolidated
                                        cash flow statement for that financial
                                        year and, in each case, the directors'
                                        report and notes

                                       1
<PAGE>

     "Affiliate"                        any subsidiary, parent company and any
                                        subsidiary or subsidiaries of such
                                        parent company

     "Arbutus Shares"                   the 1,098,138 `B' ordinary shares of
                                        (pound sterling)1.00 each in the capital
                                        of the Company registered in the name of
                                        Arbutus

     "Bank Facilities"                  each of the loan facilities made
                                        available to certain Group Members by
                                        BoS pursuant to the facility agreement
                                        dated 5 July 2000 as amended and
                                        restated on 16 October 2001, 12
                                        September 2003, 30 September 2004 as
                                        further amended on 4 May 2006 and the
                                        credit facility dated 4 May 2006

     "Bonus Amount"                     the aggregate amount (after deduction of
                                        the amount paid erroneously to the
                                        participants (other than Randy Holmes
                                        and Doug Wilson) in or around July 2006)
                                        payable to and to be received by Harry
                                        Wyndham, Dominic Greenough, Andrew West
                                        and Alexandra Pentecost by the Company
                                        as a result of Completion pursuant to
                                        the CLPE Holdings Management Incentive
                                        Plan, dated 6 August 2003 (and, for the
                                        avoidance of doubt, ignoring any PAYE or
                                        employer's or employee's national
                                        insurance contributions in relation to
                                        such payments)

     "BoS"                              the Governor and Company of the Bank of
                                        Scotland

     "Break Fee A"                      the sum of (pound sterling)3,600,000

     "Break Fee B"                      the sum of (pound sterling)1,500,000

     "Business Day"                     any day (other than a Saturday or
                                        Sunday) on which banks are open in
                                        London for normal banking business

                                       2
<PAGE>

     "Buyer's Group"                    any of the following from time to time:
                                        the Buyer, Macquarie, Macquarie Bank
                                        Limited and any of their Affiliates or
                                        any funds controlled or managed by
                                        Macquarie, Macquarie Bank Limited or any
                                        of their Affiliates (including,
                                        following Completion, each member of the
                                        Group) and "member of the Buyer's Group"
                                        will be construed accordingly

     "Buyer's Solicitors"               Berwin Leighton Paisner LLP of Adelaide
                                        House, London Bridge, London EC4R 9HA

     "CA 1985"                          the Companies Act 1985

     "Company"                          CLPE Holdings Limited (details of which
                                        are set out in Part 1 of Schedule 2)

     "Completion"                       completion of the sale and purchase of
                                        the Shares and the ROC Business Assets
                                        in accordance with clause 7

     "Completion Date"                  the date of Completion in accordance
                                        with clause 7

     "Computer Systems"                 all computer hardware and Software which
                                        is used exclusively in any Group
                                        Member's business or is in the
                                        possession of any Group Member

     "Confidential Information"         all information used in or otherwise
                                        relating to, where relevant, any Group
                                        Member's or any member of the Buyer's
                                        Group's business, customers, or
                                        financial or other affairs or any
                                        information relating to any of the
                                        Sellers, the Ridgewood Funds, the
                                        Managing Shareholder or any member of
                                        the Buyer's Group, in each case, which
                                        amounts to a trade secret and which is
                                        not publicly known

     "Consideration"                    the aggregate consideration for the sale
                                        of the Shares and ROC Business Assets as
                                        calculated pursuant to clause 4

                                       3
<PAGE>

     "Contract"                         any legally binding agreement or
                                        commitment

     "D&P"                              Duff & Phelps LLC, financial advisor to
                                        the Ridgewood Funds, Arbutus and the
                                        Managing Shareholder or any other entity
                                        or entities serving in such capacity

     "DA"                               in relation to each ROC Seller, the
                                        Development Services Agreements entered
                                        into from time to time prior to the
                                        Effective Date by and among the relevant
                                        ROC Seller and CLP Developments Limited,
                                        copies of which are identified at
                                        Documents ZZZ3, AAA4, BBB4, BBB5 and
                                        CCC4 in the Disclosure Documents

     "DSA"                              in relation to each ROC Seller, the ROC
                                        Project Development and Services
                                        Agreements entered into from
                                        time-to-time prior to the Effective Date
                                        by and among one or more Group Members
                                        and the relevant ROC Seller, copies of
                                        which are identified at Document ZZZ2,
                                        ZZZ5, AAA2, AAA3, BBB2, BBB3, CCC2 and
                                        CCC3 in the Disclosure Documents

     "Debt"                             as at the Effective Date, excluding the
                                        amount of the Term Debt as at the
                                        Effective Date, the amount (gross of any
                                        unamortised capitalised arrangement
                                        fees) outstanding (including all accrued
                                        interest and breakage costs (excluding
                                        any costs and expenses associated with
                                        or which may be incurred in connection
                                        with terminating the Term Debt or the
                                        Hedging Arrangements) assuming, for the
                                        purpose of the Working Capital
                                        Statement, that these are or would be
                                        due and payable on the Effective Date)
                                        on a consolidated basis under (i) any
                                        indebtedness and (ii) any other
                                        indebtedness in the nature of borrowings
                                        of the Group (excluding any indebtedness
                                        under the DSA's or the DA's other than
                                        the ROC Payable) including, without
                                        limitation, any liabilities in respect
                                        of any and all borrowings, overdrafts,
                                        loans, notes, bonds, debentures, bills
                                        of exchange, letters of credit, hedging
                                        arrangements (excluding the Hedging
                                        Arrangements), derivative financial
                                        instruments, debtor factoring or other
                                        arrangement the purpose of which is to
                                        borrow money, finance leases, dividends
                                        and/or redemption of share capital
                                        declared but not paid and any other
                                        accrued bonuses or sums payable pursuant
                                        to any long term incentive arrangement

                                       4
<PAGE>

     "Disclosed"                        facts, matters or other information
                                        fairly disclosed by or in the Disclosure
                                        Documents. For these purposes "fairly
                                        disclosed" means if, on a review of the
                                        Disclosure Documents, a reasonable buyer
                                        would be or might reasonably be aware of
                                        the specific fact, matter or other
                                        information and be in a position to make
                                        a reasonably informed assessment of the
                                        fact, matter or other information

     "Disclosure Documents"             the Disclosure Letter and the two
                                        identical bundles of disclosure
                                        documents (or CD-Roms) collated by or on
                                        behalf of the Sellers and attached to
                                        the same, the outside covers of which
                                        have been signed for identification by
                                        or on behalf of the Sellers and the
                                        Buyer

     "Disclosure Letter"                the letter having the same date as this
                                        Agreement from the Sellers to the Buyer
                                        qualifying the Warranties, the receipt
                                        of which has been acknowledged by the
                                        Buyer or on its behalf by the Buyer's
                                        Solicitors

     "Dormant Companies"                those companies listed in Part 3 of
                                        Schedule 2

     "Effective Date"                   11:59pm on 31 December 2006

     "EHS Law"                          all applicable law, European Union
                                        decision (insofar as legally binding),
                                        government circular, official code of
                                        practice, or official instruction or
                                        decision of any competent regulatory
                                        body in force from time to time relating
                                        to EHS Matters

                                       5
<PAGE>

     "EHS Matters"                      all or any matters relating to the
                                        pollution or protection of the
                                        Environment or harm to or the protection
                                        of human health and safety or the health
                                        of animals and plants

     "EHS Permits"                      all or any permits, consents, licences
                                        and other authorisations required by EHS
                                        Law for the operation of the business of
                                        the relevant Group Member as conducted
                                        at the date of this Agreement

     "Encumbrance"                      any mortgage, charge, pledge, lien,
                                        assignment, option, restriction, claim,
                                        right of first refusal, third party
                                        right or interest, other encumbrance or
                                        security interest of any kind, or other
                                        type of preferential arrangement having
                                        similar effect

     "Environment"                      all or any of the following media: land
                                        (including any building structure or
                                        receptacle in, on, over or under it)
                                        water (including surface, coastal and
                                        ground waters and waters in drains and
                                        sewers) and air (including the
                                        atmosphere within any natural or
                                        man-made structure or receptacle above
                                        or below ground)

     "Fairness Opinions"                the written opinions prepared for and
                                        delivered to each of the Ridgewood
                                        Funds, Arbutus and the Managing
                                        Shareholder by D&P; such opinions to be
                                        dated the date of this Agreement and to
                                        be in a form reasonably satisfactory to
                                        legal counsel to the Ridgewood Funds,
                                        Arbutus and the Managing Shareholder

     "Funding Agreement"                the definitive loan agreement and
                                        necessary ancillary documentation with a
                                        provider of finance for the purpose of
                                        funding the Buyer's payment obligations
                                        under paragraph 6 of Schedule 5 which is
                                        subject to no further approvals by the
                                        lender and which contains warranties
                                        from the Buyer and conditions precedent
                                        to draw down the agreement and the
                                        documentation being in the agreed terms

     "Governmental Entity"              any governing body, including any
                                        regulatory authority, agency, commission
                                        or other governmental entity, existing
                                        under the laws of England, Wales, the
                                        European Union, or the United States or
                                        any other governmental body with
                                        competent jurisdiction

                                       6
<PAGE>

     "Gross Macquarie Payment"          the maximum aggregate amount payable by
                                        the Buyer pursuant to this Agreement

     "Group Member"                     any company which is a member of the
                                        Group

     "Group"                            the Company and each of its subsidiaries
                                        (as defined at sections 736 and 736A CA
                                        1985) at the date of this Agreement but
                                        excluding the Dormant Companies

     "Hedging Arrangements"             the ISDA Master Agreement dated 6
                                        September 2000 and made between HBOS
                                        Treasury Services plc (1) and CLPE
                                        Projects 2 Limited (2) together with any
                                        schedules thereto.

     "ICTA"                             Income and Corporation Taxes Act 1988

     "Insider"                          a Seller or any person who is a director
                                        of any Group Member, or any person who
                                        is connected (as defined in section 839
                                        ICTA) with a Seller or any such director

     "Intellectual Property Rights"     all patents, trade marks, copyright,
                                        moral rights, rights to prevent passing
                                        off, rights in designs, in each case
                                        whether registered or unregistered

     "Law"                              any applicable law, statute, ordinance,
                                        rule, regulation, judgment, order,
                                        injunction, decree, agency requirement,
                                        license, permit, administrative and
                                        judicial doctrines, of any Governmental
                                        Entity, including, without limitation,
                                        EHS Law

     "LECs"                             means levy exemption certificates issued
                                        by OFGEM pursuant to Schedule 6 of the
                                        Finance Act 2000 to qualifying
                                        renewables generators as evidence that
                                        electricity has been generated from an
                                        eligible renewable source, which
                                        certificates will entitle the holder
                                        thereof to an exemption from the Climate
                                        Change Levy

                                       7
<PAGE>

     "Liabilities"                      all costs, expenses, losses, damages,
                                        awards, fines, (including reasonable
                                        legal and other professional fees and
                                        expenses)

     "Long Stop Date"                   15 April 2007 or such later date as may
                                        be agreed between the Buyer and the
                                        Share Sellers

     "Macquarie"                        MEIF European Investment Fund LP

     "Macquarie Letter of Undertaking"  the letter from Macquarie Investment
                                        Management (UK) Limited (acting in its
                                        capacity as manager for Macquarie) to
                                        the Sellers in the agreed terms with
                                        respect to certain undertakings to be
                                        performed by Macquarie

     "Management Accounts"              the unaudited consolidated monthly
                                        management accounts of the Group for the
                                        period from the Accounting Date to the
                                        Effective Date

     "Managing Shareholder"             Ridgewood Renewable Power LLC, a New
                                        Jersey limited liability company

     "Operational Warranties"           the Warranties (other than the Title
                                        Warranties) in Part 1 of Schedule 3

     "Order"                            shall mean any law, executive order,
                                        ruling or other order, whether
                                        temporary, preliminary or permanent that
                                        is enacted, issued, promulgated,
                                        enforced or entered by any Governmental
                                        Entity

     "Pension Scheme"                   the stakeholder pension scheme provided
                                        by Clerical Medical

     "Project"                          the operation of electricity generating
                                        plants by the Group using landfill gas
                                        extracted from a landfill site

     "Project Companies"                the project companies listed in Schedule
                                        13 and each of them shall be a "Project
                                        Company"

                                       8
<PAGE>

     "Property"                         the property specified in Schedule 6

     "Purchase Price"                   (pound sterling)120,000,000 (one hundred
                                        and twenty million pound sterling) (as
                                        adjusted, subject to clause 4.8, to
                                        account for changes in the rate of
                                        interest in accordance with Schedule 14)

     "Relevant Claim"                   any claim for any breach of this
                                        Agreement or any other claim under this
                                        Agreement other than any claim(s)
                                        pursuant to:

                                        (i) clause 4.7 (payment of termination
                                        costs incurred in repaying the Term Debt
                                        and terminating the Hedging
                                        Arrangements);

                                        (ii) clause 5.8 (payment of the Negative
                                        Amount);

                                        (iii) clause 6.8 (breach of Schedule 8
                                        which benefits Seller or Affiliates);

                                        (iv) clause 13 (payment of the Break
                                        Fee);

                                        (v) clauses 16.1; or

                                        (vi) any claim for an amount in excess
                                        of the estimated amount of the Tax
                                        payable pursuant to the Withholding Tax
                                        Claim (as defined in Schedule 4) as set
                                        out in Schedule 9 paragraph 2.26

     "Relevant Proportions"             the proportions set out in Schedule 1 in
                                        respect of each Share Seller

     "Renewables Obligation             means a certificate or certificates
     Certificates"                      issued by the OFGEM under section 32B of
                                        the Electricity Act 1989 as the same is
                                        referred to in the Renewables Obligation
                                        Order 2006 (or referred to as a SROC in
                                        the Renewables Obligation (Scotland)
                                        Order 2006 if the relevant ROC Project
                                        is situated in Scotland), or such
                                        analogous certificate, certificates or
                                        evidence as either the Secretary of
                                        State (or, if the ROC Project is
                                        situated in Scotland, the Scottish
                                        Ministers) or OFGEM shall determine from
                                        time to time

                                       9
<PAGE>

     "Repeated Warranties"              shall have the meaning ascribed to it in
                                        clause 11.7

     "Repeated Warranties Bring         shall have the meaning ascribed to it in
     Down Certificate"                  clause 11.15

     "Representative"                   shall have the meaning ascribed to it in
                                        clause 5.1

     "Ridgewood Funds"                  the Ridgewood Powerbanks, Ridgewood
                                        Electric Power Trust V LLC and The
                                        Ridgewood Power Growth Fund,
                                        collectively

     "Ridgewood Letter of Undertaking"  the letter from the Ridgewood Funds to
                                        the Buyer in the agreed terms with
                                        respect to certain undertakings to be
                                        performed by the Ridgewood Funds

     "Ridgewood Powerbanks"             Ridgewood Renewable Powerbank LLC,
                                        Ridgewood Renewable Powerbank II LLC,
                                        Ridgewood Renewable Powerbank III LLC,
                                        and Ridgewood Renewable Powerbank IV
                                        LLC, collectively

     "Ridgewood Shares"                 the 8,053,012 'A' ordinary shares of
                                        (pound sterling)1.00 each in the capital
                                        of the Company registered in the name of
                                        Ridgewood

     "Ridgewood Solicitation            the materials, including without
     Materials"                         limitation, any proxy statement or
                                        consent solicitation (each as may be
                                        amended or supplemented) to be used by
                                        any of the Ridgewood Funds for the
                                        solicitation of the approval of this
                                        Agreement and the transactions
                                        contemplated hereby by its shareholders

     "ROC 1 Assets"                     all of the business and assets owned by
                                        ROC1 or used in ROC 1's ROC Business
                                        including assets as follows:

                                        (a)       the Contracts listed in Part 1
                                                  of Schedule 11 entered into by
                                                  or on behalf of ROC 1 which
                                                  are unperformed (wholly or
                                                  partly) as at the Completion
                                                  Date;

                                       10
<PAGE>

                                        (b)       subject to the contractual
                                                  obligations referred to in
                                                  paragraph (a) above, the
                                                  plant, machinery and
                                                  equipment, fittings and other
                                                  chattels listed in Part 1 of
                                                  Schedule 12;

                                        (c)       goodwill attributable to the
                                                  ROC 1 operations;

                                        (d)       receivables due to ROC 1 at
                                                  the Effective Date under the
                                                  relevant DA and DSA
                                                  (irrespective of when they
                                                  become due)

                                        but excluding all cash (whether in hand
                                        or at bank)

     "ROC 2 Assets"                     all of the business and assets owned by
                                        ROC2 or used in ROC 2's ROC Business
                                        including assets as follows:

                                        (a)       the Contracts listed in Part 2
                                                  of Schedule 11 entered into by
                                                  or on behalf of ROC 2 which
                                                  are unperformed (wholly or
                                                  partly) as at Completion;

                                        (b)       subject to the contractual
                                                  obligations referred to in
                                                  paragraph (a) above, the
                                                  plant, machinery and
                                                  equipment, fittings and other
                                                  chattels listed in Part 2 of
                                                  Schedule 12;

                                        (c)       goodwill attributable to the
                                                  ROC 2 operations;

                                        (d)       receivables due to ROC 2 at
                                                  the Effective Date under the
                                                  relevant DA and DSA
                                                  (irrespective of when they
                                                  become due)

                                        but excluding all cash (whether in hand
                                        or at bank)

                                       11
<PAGE>

     "ROC 3 Assets"                     all of the business and assets owned by
                                        ROC3 or used in ROC 3's ROC Business
                                        including assets as follows:

                                        (a)       the Contracts listed in Part 3
                                                  of Schedule 11 entered into by
                                                  or on behalf of ROC 3 which
                                                  are unperformed (wholly or
                                                  partly) as at Completion;

                                        (b)       subject to the contractual
                                                  obligations referred to in
                                                  paragraph (a) above, the
                                                  plant, machinery and
                                                  equipment, fittings and other
                                                  chattels listed in Part 3 of
                                                  Schedule 12:

                                        (c)       goodwill attributable to the
                                                  ROC 3 operations;

                                        (d)       receivables due to ROC 3 at
                                                  the Effective Date under the
                                                  relevant DA and DSA
                                                  (irrespective of when they
                                                  become due)

                                        but excluding all cash (whether in hand
                                        or at bank)

     "ROC 4 Assets"                     all of the business and assets owned by
                                        ROC4 or used in ROC 4's ROC Business
                                        including assets as follows:

                                        (a)       the Contracts listed in Part 4
                                                  of Schedule 11 entered into by
                                                  or on behalf of ROC 4 which
                                                  are unperformed (wholly or
                                                  partly) as at Completion;

                                        (b)       subject to the contractual
                                                  obligations referred to in
                                                  paragraph (a) above, the
                                                  plant, machinery and
                                                  equipment, fittings and other
                                                  chattels listed in Part 4 of
                                                  Schedule 12;

                                        (c)       goodwill attributable to the
                                                  ROC 4 operations;

                                       12
<PAGE>

                                        (d)       receivables due to ROC 4 at
                                                  the Effective Date under the
                                                  relevant DA and DSA
                                                  (irrespective of when they
                                                  become due)

                                        but excluding all cash (whether in hand
                                        or at bank)

     "ROC Adjustment"                   the Purchase Price less
                                        (pound sterling)120,000,000 (one hundred
                                        and twenty million pound sterling) as
                                        then multiplied by:

                                        (a)       in the case of ROC 1,
                                                  12.8457%;

                                        (b)       in the case of ROC 2,
                                                  21.2872%;

                                        (c)       in the case of ROC 3,
                                                  23.8564%; and

                                        (d)       in the case of ROC 4, 11.0107%

     "ROC Business Assets"              the aggregate of the ROC 1 Assets, ROC 2
                                        Assets, ROC 3 Assets and ROC 4 Assets

     "ROC Business Contracts"           all contracts relating to the ROC
                                        Business, other than to the extent such
                                        contracts relate to the Dormant
                                        Companies, including all contracts
                                        listed in Schedule 11 entered into by or
                                        on behalf of a ROC Seller which are
                                        unperformed (wholly or partly) as at
                                        Completion, and, which have been
                                        attached to the Disclosure Letter

     "ROC Business"                     the development and operation of the ROC
                                        Projects solely carried on by each ROC
                                        Seller at the date of this Agreement
                                        pursuant to the relevant ROC Business
                                        Contract

     "ROC Consideration"                the consideration payable for the ROC
                                        Business Assets in accordance with
                                        clause 4.3 but ignoring, for the purpose
                                        of this definition, any deduction in
                                        respect of any breach(es) of Schedule 8
                                        by any of the ROC Sellers

                                       13
<PAGE>

     "ROC Payable"                      the aggregate of all amounts due from
                                        the relevant Group Member to any ROC
                                        Seller in the books and ledgers of the
                                        relevant Group Member accrued and earned
                                        as at the Effective Date in respect of
                                        fixed and variable payments under the
                                        DSA's and amounts of interest accrued
                                        pursuant to advances from the ROC
                                        Sellers to the relevant Group Member
                                        under the DA's, as agreed or determined
                                        in accordance with clause 5 and Schedule
                                        9 in the Working Capital Statement

     "ROC Plant and Equipment"          the plant, machinery and equipment,
                                        fittings and other chattels of each ROC
                                        Seller listed in Schedule 12

     "ROC Projects"                     the development and operation of
                                        electricity generating plants by a ROC
                                        Seller using landfill gas extracted from
                                        a landfill site with a view to
                                        generating and selling electricity along
                                        with its associated regulatory benefits
                                        pursuant to electricity sales agreements
                                        entered into by the relevant Group
                                        Member

     "ROC Receivable"                   the aggregate of all amounts due from
                                        the relevant Group Member to any ROC
                                        Seller in the books and ledgers of the
                                        relevant ROC Seller accrued and earned
                                        as at the Effective Date in respect of
                                        fixed and variable payments under the
                                        DSA's and amounts of interest accrued
                                        pursuant to advances from the ROC
                                        Sellers to the relevant Group Member
                                        under the DA's, as agreed or determined
                                        in accordance with clause 5 and Schedule
                                        9 in the Working Capital Statement

     "ROC Seller"                       each of ROC 1, ROC 2, ROC 3, and ROC 4
                                        and "ROC Sellers" shall mean all of them

     "ROC Warranties"                   the Warranties set out in Part 2 of
                                        Schedule 3

     "Royalties"                        royalty or licence payments accrued or
                                        invoiced as at the Effective Date and
                                        payable by a Group Member to landfill
                                        site owners pursuant to the gas
                                        agreements entered into by a Group
                                        Member in respect of each project site

                                       14
<PAGE>

     "SEC"                              the U.S. Securities and Exchange
                                        Commission

     "Sellers Agreement"                the agreement dated the date of this
                                        Agreement between each of the Sellers
                                        relating to, amongst other things, the
                                        apportionment of the Share Consideration

     "Sellers' Solicitors Undertaking"  the undertaking in the agreed terms
                                        given by the Sellers' Solicitors to the
                                        Buyer's Solicitors in relation to the
                                        holding of the Consideration on or
                                        before Completion and the distribution
                                        of the Consideration and other payments
                                        following Completion

     "Sellers' Solicitors"              Eversheds LLP of Senator House, 85 Queen
                                        Victoria Street, London EC4V 4JL

     "Sellers' Solicitors' Client       Account Number 90639443 with Barclays
      Account                           Bank PLC with sort code 20-18-15

     "Share Consideration"              the aggregate consideration for the sale
                                        of the Shares as stated in clause 4.1

     "Share Sellers"                    Ridgewood and Arbutus

     "Share Warranties"                 the Warranties set out in Part 1 of
                                        Schedule 3 and Part 3 of Schedule 4

     "Shares"                           all the issued and to be issued shares
                                        in the capital of the Company comprising
                                        the Arbutus Shares and the Ridgewood
                                        Shares

     "Software"                         any form of computer program whether in
                                        source or object code form

     "Stock"                            Stocks (as defined in Statement of
                                        Standard Accounting Practice No 9
                                        adopted by the Accounting Standards
                                        Board) of each Group Member on a
                                        consolidated basis

     "Superior Offer"                   shall have the meaning ascribed to it in
                                        clause 12.2

     "Surviving Provisions"             clauses 1 (Interpretation), 13 (Break
                                        Fee), clause 14 (Confidentiality), 17
                                        (Announcements), 18 (Costs), 19
                                        (Notices), 23 (Entire Agreement) and 25
                                        (Governing Law and jurisdiction)

                                       15
<PAGE>

     "Tax" and "Taxation"               shall have the meaning ascribed thereto
                                        in Part 1 of Schedule 4

     "Tax Covenant"                     the covenants by the Sellers in Part 2
                                        of Schedule 4

     "Tax Warranties"                   the warranties set out in Part 3 of
                                        Schedule 4

     "Term Debt"                        the principal amount (including interest
                                        or accrued interest) of the term debt
                                        owed by certain Group Members to BoS
                                        pursuant to the Bank Facilities less the
                                        restricted cash reserve with BOS in
                                        connection with the same and the amount
                                        due from the relevant Group Member under
                                        the 2 Clarke Energy Equipment Leases

     "Title Warranties"                 the Warranties at paragraphs 1 and 2 of
                                        Part 1 of Schedule 3

     "Warranty and Indemnity            the insurance policy insuring against
     Insurance"                         loss for breaches of the Warranties and
                                        claims under the Tax Covenant in the
                                        agreed terms

     "United Kingdom"                   the United Kingdom of Great Britain and
                                        Northern Ireland

     "VAT"                              Value Added Tax

     "VATA"                             Value Added Tax Act 1994

     "Warranties"                       the warranties set out or referred to in
                                        clause 11, Schedule 3 and Part 3 of
                                        Schedule 4

     "Working Capital"                  the working capital is the aggregate of,
                                        as of the Effective Date:

                                        (i) current assets;

                                        (ii) current liabilities;

                                        (iii) Debt;

                                        (iv) Working Capital Liabilities; and

                                        (v) the amount derived from paragraph
                                        2.24 of Part 2 of Schedule 9,

                                       16
<PAGE>

                                        in each case of the Group (on a
                                        consolidated basis),

                                        but excluding, as at the Effective Date:

                                        (a)       any liabilities under the
                                                  DSA's and the DA's due from
                                                  any Group Member to a ROC
                                                  Seller, other than the ROC
                                                  Payable;

                                        (b)       work-in-progress and assets in
                                                  the course of construction,
                                                  including any capitalised
                                                  interest thereon

                                        (c)       deferred income recognised on
                                                  the commissioning of a project
                                                  in respect of the excess of
                                                  construction advances on the
                                                  project over the cost of
                                                  construction of the project;

                                        (d)       deferred expenditure
                                                  recognised on the
                                                  commissioning of a project in
                                                  respect of the excess of the
                                                  cost of construction of the
                                                  project over the construction
                                                  advances on the project;

                                        (e)       deferred tax assets;

                                        (f)       deferred tax liabilities;

                                        (g)       the restricted cash reserve
                                                  with BOS (which is referred to
                                                  in the definition of Term
                                                  Debt) as at the Effective
                                                  Date; and

                                        (h)       any unamortised capitalised
                                                  arrangement fees included
                                                  within current assets or
                                                  current liabilities

     "Working Capital Liabilities"      the liabilities of the Group (on a
                                        consolidated basis):

                                        (i) in respect of any Tax estimated to
                                        be due or payable (on a consolidated
                                        basis) by the Group in respect of the
                                        period up to and including the Effective
                                        Date;

                                       17
<PAGE>

                                        (ii) (pound sterling)630,000, being the
                                        aggregate of the amounts (net of VAT) of
                                        capital expenditure as at the Effective
                                        Date which the parties have agreed is
                                        required following the Effective Date to
                                        be spent in respect of certain new wells
                                        and engines and, in addition, the
                                        replacement of certain pistons, liners
                                        and rings; and

                                        (iii) in respect of any amounts due from
                                        the Sellers to the Buyer in respect of a
                                        breach of their obligations under
                                        Schedule 8 which is agreed or determined
                                        in accordance with clause 6.8

     "Working Capital Statement"        the statement prepared by the Sellers
                                        and agreed or determined in accordance
                                        with clause 5 and Schedule 9 for the
                                        purpose of calculating the Working
                                        Capital and the ROC Receivable in
                                        accordance with clause 5 and Schedule 9
                                        (a proforma of which is set out in Part
                                        3 of Schedule 9)

1.2        references to any statute or statutory provision include, unless the
           context otherwise requires, a reference to the statute or statutory
           provision as modified, replaced or re-enacted and in force from time
           to time prior to Completion and any subordinate legislation made
           under the relevant statute or statutory provision (as so modified,
           replaced or re-enacted) in force prior to Completion;

1.3        references to a person includes a reference to any individual, firm,
           company, limited liability company, business trust, corporation or
           other body corporate, government, state or agency of a state or any
           unincorporated association, joint venture or partnership (whether or
           not having a separate legal personality);

1.4        references to statutory provisions or to a legal or accounting
           principle applying under English law shall, where the context
           requires, be treated as including references to the nearest
           corresponding provision or principle in the local jurisdiction and
           references to a governmental, local governmental or administrative
           authority or agency in the United Kingdom shall be treated as
           including references to the nearest equivalent governmental local
           governmental or administrative authority or agency in that
           jurisdiction provided that, in each case, the liability of the
           Sellers shall, as a result of such treatment, be no greater than it
           would have been under English law or under governmental, local
           governmental or administrative authority or agency in the United
           Kingdom;

                                       18
<PAGE>

1.5        the masculine, feminine or neuter gender respectively includes the
           other genders and the singular will include the plural (and vice
           versa);

1.6        references to a document being "in the agreed terms" are to that
           document in the form agreed and for the purposes of identification
           initialled by or on behalf of the Sellers and the Buyer;

1.7        unless expressly stated otherwise, all obligations, covenants,
           undertakings, representations and warranties on the part of two or
           more persons or entities are entered into, given or made by such
           persons severally but not jointly;

1.8        references to clauses and Schedules are to clauses of and Schedules
           to this Agreement, and references to paragraphs or Parts are to
           paragraphs in or Parts of the Schedule in which such references
           appear;

1.9        the Schedules and Appendices form part of this Agreement and will
           have the same force and effect as if expressly set out in the body of
           this Agreement;

1.10       the headings in this Agreement will not affect its interpretation;

1.11       any phrase introduced by the term "include", "including", "in
           particular" or any similar expression will be construed as
           illustrative and will not limit the sense of the words preceding that
           term;

1.12       reference to time shall be to the time in London, England; and

1.13       references to a "subsidiary undertaking" or "parent undertaking" is
           to be construed in accordance with section 258 of the CA 1985;
           references to a "subsidiary" or "holding company" is to be construed
           in accordance with section 736 of the CA 1985; and references to a
           "current assets" and "current liabilities" is to be construed in
           accordance with the CA 1985.

2.         SHARE SALE AND PURCHASE

2.1        At Completion, Ridgewood agrees to and will sell, with full title
           guarantee, and the Buyer agrees to and will buy, the Ridgewood
           Shares.

2.2        At Completion, Arbutus agrees to and will sell, with full title
           guarantee, and the Buyer agrees to and will buy the Arbutus Shares.

2.3        In each case the Shares will be sold free of any Encumbrance and with
           all rights attached or accruing to them at or after the date of this
           Agreement.

2.4        Each of the Share Sellers severally waives any rights of pre-emption
           or other right or option conferred on them under the articles of
           association of the Company or otherwise in respect of any of the
           Shares.

                                       19
<PAGE>

2.5        Ridgewood warrants that the Ridgewood Shares when taken together with
           the Arbutus Shares constitute all the Shares in the Company.

2.6        Arbutus warrants that the Arbutus Shares when taken together with the
           Ridgewood Shares constitute all the Shares in the Company.

2.7        The Share Sellers hereby waive any rights of pre-emption in favour of
           them or requirements for consent required from them in connection
           with or which are necessary to transfer the Shares.

3.         ASSET SALE AND PURCHASE

3.1        At Completion, ROC 1 agrees to and will sell and transfer with full
           title guarantee to the Buyer (or as it directs in accordance with
           clause 3.7) and the Buyer agrees to and will buy as at Completion the
           ROC1 Assets.

3.2        At Completion, ROC 2 agrees to and will sell and transfer with full
           title guarantee to the Buyer (or as it directs in accordance with
           clause 3.7) and the Buyer agrees to and will buy as at Completion the
           ROC2 Assets.

3.3        At Completion, ROC 3 agrees to and will sell and transfer with full
           title guarantee to the Buyer (or as it directs in accordance with
           clause 3.7) and the Buyer agrees to and will buy as at Completion the
           ROC3 Assets.

3.4        At Completion, ROC 4 agrees to and will sell and transfer with full
           title guarantee to the Buyer (or as it directs in accordance with
           clause 3.7) and the Buyer agrees to and will buy as at Completion the
           ROC4 Assets.

3.5        Each of the ROC Business Assets will be sold and bought free from any
           Encumbrance and with all rights attached to it.

3.6        Except as otherwise provided in the Agreement:

           3.6.1      beneficial ownership and risk in each of the ROC Business
                      Assets in respect of which beneficial ownership is to pass
                      to the Buyer will pass to the Buyer on Completion;

           3.6.2      title to all ROC Business Assets in respect of which
                      beneficial ownership is to pass to the Buyer which can be
                      transferred by delivery will pass on delivery and such
                      delivery will be deemed to take place at Completion but
                      with effect from the Effective Date; and

           3.6.3      each ROC Seller will hold the ROC Business Assets of that
                      ROC Seller for the benefit of the Buyer from Completion
                      but with effect from the Effective Date until they have
                      been actually delivered and/or, in the case of ROC
                      Business Assets not capable of transfer by delivery,
                      transferred or assigned to the Buyer

                                       20
<PAGE>

3.7        The ROC Sellers confirm and agree that the Buyer shall be entitled,
           prior to Completion by notice in writing to the ROC Sellers, to
           substitute a wholly owned subsidiary of the Buyer as the purchaser of
           any of the ROC Business Assets and references in this Agreement to
           the Buyer shall be deemed to refer to such substituted purchaser, if
           applicable, where the context requires provided that (i) such
           substituted purchaser shall be an additional obligor of all the
           obligations that relate to the Buyer in relation to such ROC Business
           Assets; (ii) the obligations of the Buyer will remain in full force
           and effect notwithstanding such substitution; and (ii) the liability
           of the ROC Sellers under this Agreement and the documents
           contemplated or referred to herein shall not be increased or extended
           as a result of such substitution.

3.8        The provisions of Schedule 4 will apply in relation to Taxation
           matters but the provisions of paragraph 2 of Part 2 of Schedule 4
           shall have effect only from Completion.

4.         CONSIDERATION

4.1        The aggregate consideration for the sale of the Shares shall be an
           amount equal to the sum of the Purchase Price less
           (pound sterling)10,237,407.61 (ten million two hundred and thirty
           seven thousand four hundred and seven pounds sterling 61 pence).

           4.1.1      less the ROC Consideration (but excluding for the purpose
                      of this clause 4.1.1 the amount of the ROC Receivable);

           4.1.2      plus the Positive Amount (as such term is defined in
                      clause 5.9) or less the Negative Amount (as such term is
                      defined in clause 5.8);

           4.1.3      less the amount of any claim for a breach of Part I of
                      Schedule 8 which is agreed or determined in accordance
                      with clause 6.8.2; and

           4.1.4      less the aggregate of the Bonus Amount and all PAYE and
                      employer's and employee's national insurance contributions
                      applicable to such Bonus Amount.

4.2        Each Share Seller shall receive the Share Consideration in the manner
           to be determined in accordance with the Sellers' Agreement.

4.3        The consideration for:

           4.3.1      the sale of the ROC 1 Assets will be the sum of (pound
                      sterling)15,414,893.62 (fifteen million four hundred and
                      fourteen thousand eight hundred and ninety three pounds
                      sterling 62 pence) (plus the relevant ROC Adjustment) (i)
                      less the amount of any claim for a breach by ROC 1 of its
                      obligations under Part II of Schedule 8 which has been
                      agreed or determined in accordance with clause 6.8.2 (ii)
                      plus, on behalf of the relevant Group Member, the amount
                      of the ROC Receivable payable to ROC 1;

                                       21
<PAGE>

           4.3.2      the sale of the ROC 2 Assets will be the sum of (pound
                      sterling)25,544,680.85 (twenty five million five hundred
                      and forty four thousand six hundred and eighty pounds
                      sterling 85 pence) (plus the relevant ROC Adjustment) (i)
                      less the amount of any claim for a breach by ROC 2 of its
                      obligations under Part II of Schedule 8 which has been
                      agreed or determined in accordance with clause 6.8.2 (ii)
                      plus, on behalf of the relevant Group Member, the amount
                      of the ROC Receivable payable to ROC 2;

           4.3.3      the sale of the ROC 3 Assets will be the sum of (pound
                      sterling)28,627,659.57 (twenty eight million six hundred
                      and twenty seven thousand six hundred and fifty nine
                      pounds sterling 57 pence) (plus the relevant ROC
                      Adjustment) (i) less the amount of any claim for a breach
                      by ROC 3 of its obligations under Part II of Schedule 8
                      which has been agreed or determined in accordance with
                      clause 6.8.2 (ii) plus, on behalf of the relevant Group
                      Member, the amount of the ROC Receivable payable to ROC 3;

           4.3.4      the sale of the ROC 4 Assets will be the sum of (pound
                      sterling)13,212,765.96 (thirteen million two hundred and
                      twelve thousand seven hundred and sixty five pounds
                      sterling 96 pence) (plus the relevant ROC Adjustment) (i)
                      less the amount of any claim for a breach by ROC 4 of its
                      obligations under Part II of Schedule 8 which has been
                      agreed or determined in accordance with clause 6.8.2 (ii)
                      plus, on behalf of the relevant Group Member, the amount
                      of the ROC Receivable payable to ROC 4,

           and will be allocated, for tax purposes, as set out in Schedule 10.

4.4        The Consideration to be paid in clauses 4.1 and 4.3 shall be applied
           in accordance with paragraphs 6.1 and 6.2 of Schedule 5 accordingly.

4.5

           4.5.1      If the Working Capital Statement has not been agreed or
                      determined in accordance with clause 5 prior to
                      Completion, the consideration payable for the Shares on
                      Completion shall be paid without taking into account the
                      Positive Amount or the Negative Amount and such
                      consideration will be adjusted following Completion when,
                      within 2 Business Days of the agreement or determination
                      of the Working Capital Statement in accordance with clause
                      5, the Buyer will pay to the Share Sellers the Positive
                      Amount or the Share Sellers will pay to the Buyer the
                      Negative Amount, as the case may be.

                                       22
<PAGE>

           4.5.2      If that part of the ROC Receivable payable to one or more
                      of the ROC Sellers has not been agreed or determined in
                      accordance with clause 5 prior to Completion, the
                      consideration payable for the ROC Business Assets on
                      Completion shall be paid without taking into account such
                      part of the ROC Receivable and such consideration will be
                      increased following Completion when, within 2 Business
                      Days of the agreement or determination of such part of the
                      ROC Receivable in accordance with clause 5, the Buyer will
                      pay to each ROC Seller such part only of the ROC
                      Receivable to which each ROC Seller is entitled (and has
                      not yet received).

4.6        All amounts expressed in this Agreement as being payable by the Buyer
           are expressed exclusive of any VAT (if applicable) which may be
           chargeable.

4.7        The Share Sellers undertake to pay to the Buyer an amount equal to
           all costs and expenses incurred by the Group associated with or
           incurred in connection with terminating the Term Debt and the Hedging
           Arrangements following Completion.

4.8        If, as a result of the adjustment set out in Schedule 14, the
           Purchase Price is reduced to less than (pound sterling)110,000,000:

           4.8.1      the Buyer shall have the right but not the obligation to
                      complete this Agreement in which event the Purchase Price
                      will be deemed to be (pound sterling)110,000,000;

           4.8.2      if the Buyer has not exercised its right under clause
                      4.8.1 by the Long Stop Date, the Sellers shall have the
                      right to terminate this Agreement pursuant to clause
                      12.2(iii).

5.         WORKING CAPITAL STATEMENT AND ROC RECEIVABLE

5.1        For the purposes of this clause 5, clause 11.9 and Schedule 9, the
           Sellers shall be represented by and hereby appoint Mr Douglas Wilson
           as their representative (the "Representative") and the Buyer and its
           advisors and the Independent Accountant (referred to and defined
           below) shall be entitled to treat and rely on the notices, consents,
           approvals and directions of the Representative as being issued on
           behalf of and with the express authority of each of the Sellers who
           agree to be bound by the decision of the Representative and not to
           challenge his/her decisions or actions. References to Sellers in the
           definition of "Working Capital Statement", clause 5 (other than
           clause 5.10), clause 11.9 and Schedule 9 shall be deemed to refer to
           the Representative.

5.2        The Sellers shall procure that a draft of the Working Capital
           Statement together with full supporting documentation and working
           papers shall be prepared, in accordance with Schedule 9 and delivered
           to the Buyer within 20 days following the date of this Agreement.

                                       23
<PAGE>

5.3        If the Buyer notifies the Sellers within 30 days of receipt of such
           draft Working Capital Statement that they do not accept the
           correctness of it and their reasons for such non-acceptance, the
           parties shall use their reasonable endeavours to reach agreement on
           the draft Working Capital Statement as soon as possible after such
           notification. If the Buyer does not so notify the Sellers within such
           30 day period then the parties shall be deemed to accept the
           correctness of the draft which shall become the Working Capital
           Statement for the purposes of this Agreement and shall be final and
           binding on the parties (in the absence of manifest error) and be
           deemed to be in accordance with Schedule 9 upon the expiry of the 30
           days.

5.4        If the parties are unable to reach agreement within 5 days following
           the notification of objections by the Buyer to the Share Sellers, the
           matter in dispute will be referred to an independent accountant (the
           "Independent Accountant"). If the parties are unable to agree the
           identity of the Independent Accountant, or if the proposed
           Independent Accountant refuses to act, the matter shall be referred
           by any party to this Agreement to the President of the Institute of
           Chartered Accountants who shall decide who shall be the Independent
           Accountant. The decision of the Independent Accountant shall be given
           within 20 days of the matter being referred to him pursuant to this
           clause. In giving his decision the Independent Accountant shall
           determine those adjustments (if any) which are necessary to the draft
           Working Capital Statement in order to resolve the matters notified by
           the Buyer pursuant to clause 5.3. The draft Working Capital Statement
           as so adjusted or not (as the case may be) shall become the Working
           Capital Statement for the purposes of this Agreement and (in the
           absence of manifest error) be final and binding on the parties, and
           be deemed to be in accordance with Schedule 9, upon the written
           notification of such decision to the Sellers and the Buyer and shall
           be used for calculating the Consideration in accordance with clauses
           4.1 and 4.3.

5.5        The Buyer and the Sellers shall co-operate fully with the Independent
           Accountant at all times including in relation to agreeing the
           Independent Accountant's terms of engagement.

5.6        Any determination by the Independent Accountant pursuant to clause
           5.4 shall be binding on all concerned and shall be given by him as an
           expert and not as an arbitrator and the Arbitration Acts 1950 and
           1996 shall not apply.

5.7        The Sellers shall procure that the Buyer and its advisors shall have
           full and unfettered access to all relevant papers, documents, records
           and personnel of the Group (for the sole purpose of agreeing or
           determining the Working Capital Statement) and of the ROC Sellers
           (for the sole purpose of agreeing or determining the ROC Receivable).
           If the Working Capital Statement has not been agreed prior to
           Completion, the Buyer shall procure that the Sellers, their advisors
           and the Independent Accountant shall have full and unfettered access
           to all relevant papers, documents, records and personnel of the Group
           for the purposes of preparing and agreeing or determining the Working
           Capital Statement.

                                       24
<PAGE>

5.8        If, as determined by the Working Capital Statement, the Working
           Capital shall show net liabilities (the amount of such net
           liabilities being, the "Negative Amount") such amount shall be
           deducted from the Consideration in accordance with clause 4.1.

5.9        If, as determined by the Working Capital Statement, the Working
           Capital shall show net assets (the amount of such net assets being,
           the "Positive Amount") such amount shall be added to the
           Consideration in accordance with clause 4.1.

5.10       All costs incurred by the Sellers in reviewing and agreeing the
           Working Capital Statement shall be borne by the Sellers and all such
           costs incurred by the Buyer in reviewing and agreeing the Working
           Capital Statement shall be borne by the Buyer. The fees of the
           Independent Accountant shall be payable by the Sellers and the Buyer
           in such proportions as the Independent Accountant determines (or
           failing such determination half shall be payable by the Buyer and
           half by the Sellers).

5.11       Any agreement or determination of the Working Capital pursuant to
           this clause 5 shall specifically identify the values attributed to
           each liability and asset.

5.12       Any agreement or determination of the ROC Receivable pursuant to this
           clause 5 shall specifically identify the value attributable to that
           part of the ROC Receivable due to each ROC Seller.

6.         CONDITIONS

6.1        Completion is conditional on the following conditions being
           satisfied:

           6.1.1      the receipt of a certificate approving the terms of this
                      Agreement and the transactions contemplated by it by each
                      of the following:

                      6.1.1.1    Ridgewood receiving a certificate from
                                 Ridgewood Electric Power Trust V LLC
                                 certifying, to the extent required by law, the
                                 approval of this Agreement and the transactions
                                 contemplated by it by the Managing Shareholder;

                      6.1.1.2    Ridgewood receiving a certificate from
                                 Ridgewood Power Growth Fund certifying, to the
                                 extent required by law, the approval of this
                                 Agreement and the transactions contemplated by
                                 it by the Managing Shareholder;

                                       25
<PAGE>

                      6.1.1.3    ROC 1 receiving a certificate from Ridgewood
                                 Renewable Powerbank LLC certifying, to the
                                 extent required by law, the approval of this
                                 Agreement and the transactions contemplated by
                                 it by the Managing Shareholder and the
                                 shareholders of Ridgewood Renewable Powerbank
                                 LLC;

                      6.1.1.4    ROC 2 receiving a certificate from Ridgewood
                                 Renewable Powerbank II LLC certifying, to the
                                 extent required by law, the approval of this
                                 Agreement and the transactions contemplated by
                                 it by the Managing Shareholder and the
                                 shareholders of Ridgewood Renewable Powerbank
                                 II LLC;

                      6.1.1.5    ROC 3 receiving a certificate from Ridgewood
                                 Renewable Powerbank III LLC certifying, to the
                                 extent required by law, the approval of this
                                 Agreement and the transactions contemplated by
                                 it by the Managing Shareholder and the
                                 shareholders of Ridgewood Renewable Powerbank
                                 III LLC; and

                      6.1.1.6    ROC 4 receiving a certificate of approval from
                                 Ridgewood Renewable Powerbank IV LLC
                                 certifying, to the extent required by law, the
                                 approval of this Agreement and the transactions
                                 contemplated by it by the Managing Shareholder
                                 and the shareholders of Ridgewood Renewable
                                 Powerbank IV LLC;

           6.1.2      the Fairness Opinions not having been withdrawn by D&P and
                      each Fairness Opinion being in full force and effect on
                      Completion;

           6.1.3      no Governmental Entity shall have enacted, issued,
                      promulgated, enforced or entered any Order, that is then
                      in effect and has the effect of preventing or prohibiting
                      Completion or otherwise imposing material limitations on
                      the ability of the Sellers to accomplish the conditions
                      set out in clause 6.1.1 or 6.1.2; provided, however, that
                      each of the parties hereto shall use their reasonable
                      commercial efforts to have any such Order vacated;

           6.1.4      no injunction, or other order by any court of competent
                      jurisdiction in any jurisdiction remaining outstanding
                      which has the effect of preventing or prohibiting
                      Completion or otherwise imposing material limitations on
                      the ability of the Sellers to accomplish the conditions
                      set out in clause 6.1.1 or 6.1.2 or claims for damages;
                      provided, however, that each of the parties hereto shall
                      use their reasonable commercial efforts to have any such
                      injunction or Order vacated;

                                       26
<PAGE>

           6.1.5      there shall be no pending suit, action or proceeding by
                      any Governmental Entity (i) seeking to prohibit, or impose
                      any material limitations upon any material terms set forth
                      in this Agreement, (ii) seeking to restrain or prohibit
                      Completion or the performance of any of the other
                      transactions contemplated by this Agreement, or seeking to
                      obtain from the Sellers, the Managing Shareholder, the
                      Company or the Ridgewood Funds any damages that are
                      material to them, or (iii) which otherwise would have a
                      material adverse effect on the transactions contemplated
                      by this Agreement; and

           6.1.6      the Agreement not having been terminated pursuant to
                      clause 12.

6.2        The Sellers (or any one of them) will give evidence (in a form
           reasonably satisfactory to the Buyer) of satisfaction of the
           conditions in clauses 6.1.1, and 6.1.2, such evidence to be given as
           soon as possible after the relevant condition is satisfied.

6.3        If any of the Sellers or the Buyer becomes aware of any fact or
           matter that prejudices the satisfaction of a condition, then such
           Seller or Buyer will as soon as practicable inform the other parties.

6.4        This Agreement will automatically terminate if:

           6.4.1      a condition set out in clause 6.1.1 to 6.1.5 has not been
                      satisfied or agreed to be waived by all the parties to
                      this Agreement on or before the Long Stop Date; or

           6.4.2      this Agreement does not complete in accordance with its
                      terms for any other reason other than in circumstances
                      where a specific right of termination exists pursuant to
                      clauses 4.8, 6.4.1 and 12 on or before the Long Stop Date.

6.5        Upon termination of the Agreement pursuant to clause 6.4 the
           following provisions will apply (save for where the Buyer is required
           to keep a copy by law or regulatory authority, or in respect of
           professional advisers being entitled to keep a copy in accordance
           with applicable professional rules and conduct):

           6.5.1      the Buyer will return to the Sellers all information (and
                      all copies of such information) which has been supplied to
                      the Buyer or its advisers by the Sellers or their advisers
                      before such date;

           6.5.2      the Buyer will destroy all reports, analyses, studies and
                      other documents prepared by it or its advisers which
                      contain or otherwise reflect information supplied to it or
                      its advisers by the Sellers and their advisers and will
                      provide the Sellers with a certificate confirming the
                      same;

                                       27
<PAGE>

           6.5.3      each of the Buyer and the Sellers will bear their own
                      costs relating to the negotiation, preparation, execution
                      or termination of this Agreement or the satisfaction of
                      any condition set out in clauses 6 and 12.1; and

           6.5.4      each of the parties' further rights and obligations cease
                      immediately on termination, including in respect of any
                      breach of contract for failure to provide the Warranty and
                      Indemnity Insurance, but termination does not affect the
                      parties' rights and obligations accrued prior to
                      termination in relation to

                                 (i)        any of the Surviving Provisions or,

                                 (ii)       in circumstances where the Agreement
                                            has been terminated pursuant to
                                            clause 6.4.2, a failure by a party
                                            to comply with Schedule 5.

6.6        Immediately following the Effective Date and pending Completion:

           6.6.1      the Share Sellers will comply with the requirements set
                      out in Part I of Schedule 8 and each ROC Seller will
                      comply with the requirements set out in Part II of
                      Schedule 8 insofar as it relates to that ROC Seller;

           6.6.2      the Share Sellers shall procure that, at the written
                      request of the Buyer, notice (the form and content of
                      which is first approved in writing by or on behalf of the
                      Buyer) is given to the relevant site operators by the
                      relevant Project Companies under the gas agreements for
                      Jameson Road Energy Limited, Whinney Hill Energy 2
                      Limited, Connon Bridge Energy Limited and United Mines
                      Energy Limited of the change of control which will be
                      triggered on Completion, such draft notices to be provided
                      to the Buyer for approval within 3 Business Days of such
                      request and will be sent to the relevant site operator
                      within 3 Business Days of approval by the Buyer; and

           6.6.3      the Buyer shall cooperate with and provide, in a timely
                      manner, documentation to the Sellers and the Managing
                      Shareholder in connection with the preparation of the
                      Ridgewood Solicitation Materials and the preparation of
                      the Fairness Opinions by D&P to the extent that the
                      preparation of such materials reasonably requires
                      information about the Buyer or Macquarie or any of its
                      Affiliates.

                                       28
<PAGE>

6.7        The Buyer acknowledges that it has received from the Share Sellers
           the Management Accounts.

6.8        In the event of any breach(es) by any of the Sellers of the
           provisions relating to them set out in Schedule 8, to the extent that
           the value of such breach is agreed or determined before Completion in
           accordance with clause 6.8.2, the Consideration payable at Completion
           shall be reduced by such amount and to the extent the value of such
           breach is agreed or determined in accordance with clause 6.8.2 after
           Completion, the relevant Seller shall, following Completion, pay to
           the Buyer an amount equal to all Liabilities incurred by the Buyer or
           the Group (as applicable) as a result of such breach and the
           Consideration shall be accordingly reduced by any amounts so paid to
           the Buyer in each case, provided that:

           6.8.1      the Sellers will not be liable for any claim under this
                      clause 6.8 unless, within a period of 30 days after the
                      date of Completion, the Share Sellers receive written
                      notice of such claim specifying the quantum of such claim
                      and the nature of such claim in reasonable detail;

           6.8.2      if the Sellers and the Buyer are unable to agree the
                      validity and/or value of such claim within 5 days of the
                      Share Sellers receiving notice of such claim under clause
                      6.8.1, the Sellers and the Buyer shall immediately procure
                      that the claim will be referred to a Queens Counsel
                      barrister of not less than 10 years standing (nominated by
                      them but otherwise appointed by the President of the Law
                      Society of England and Wales) who shall be instructed to
                      provide an opinion on the likelihood of the success of,
                      and likely quantum, of such claim within 10 days of such
                      referral and his/her determination shall be final and
                      binding on all concerned and shall be given by him/her as
                      an expert and not as arbitrator;

           6.8.3      the Sellers' maximum aggregate liability under this clause
                      6.8 including the Buyer's costs and expenses incurred in
                      successfully bringing such a claim shall not exceed
                      (pound sterling)40,000,000.

6.9        The (pound sterling)40,000,000 cap on liability set out in clause
           6.8.3 shall be reduced after the expiry of the 30 day period referred
           to in clause 6.8.1 to an amount equal to the aggregate value of all
           claims made which remain outstanding and which have not been agreed
           or determined in accordance with clause 6.8.2 and all claims which
           have been agreed or determined in accordance with clause 6.8.2 (such
           amount being the "New Cap Amount") and the Sellers shall be free to
           distribute the difference between (pound sterling)40,000,000 and the
           New Cap Amount as they, in their absolute discretion, deem fit. The
           value of a claim which has not been agreed or determined in
           accordance with clause 6.8.2 shall only be included in the New Cap
           Amount to the extent that it represents a reasonable assessment by
           the Buyer of the correct value of such claim.

                                       29
<PAGE>

6.10       The Sellers shall procure that the Buyer shall have unfettered access
           to all relevant papers, documents, records and personnel of the Group
           for the sole purpose of identifying whether the Buyer has any claims
           under clause 6.8.

6.11       The Buyer warrants to the ROC Sellers, the Share Sellers and the
           Managing Shareholder prior to Completion that none of the information
           supplied or to be supplied by the Buyer or its representatives
           pursuant to clause 6.6.2 shall, at the dates such materials are
           supplied by the Buyer, contain any untrue statement of a material
           fact or omit to state any material fact required to be stated therein
           or necessary in order to make the statements therein, in the light of
           the circumstances under which they are made, nor is such information
           misleading in any material respect. The Buyer further warrants to the
           Share Sellers, the ROC Sellers and the Managing Shareholder that it
           will promptly inform the Share Sellers, the ROC Sellers and the
           Managing Shareholder of any fact, matter or event which renders such
           information supplied by the Buyer or its representatives pursuant to
           clause 6.6.2 materially untrue or incorrect.

6.12       Between the period from the date of this Agreement and the Long Stop
           Date, the Sellers undertake not to solicit other offers for the
           business of the Group or the Shares or for any of the ROC Business
           Assets except that this provision shall not prohibit the Sellers,
           once they or any of them receive an indication of a possible Superior
           Offer, from negotiating with such offeror(s).

7.         COMPLETION

7.1        Subject to earlier termination pursuant to this Agreement and the
           provisions of this clause 7, Completion will take place at the
           offices of the Sellers' Solicitors on the tenth Business Day after
           the date on which the last of the conditions set out in clauses 6.1.1
           to 6.1.7 (inclusive) have all been satisfied or evidence of
           satisfaction given in accordance with clause 6.2 (or waived in
           accordance with clause 6.4) or on such earlier date as may be agreed
           between the Sellers and the Buyer, provided always that the condition
           at clause 6.1.6 is satisfied at Completion.

7.2        Completion will not be deemed to have taken place unless the Sellers
           and the Buyer comply with the provisions of Schedule 5.

7.3        The Sellers' Solicitors are authorised to receive the Consideration
           on behalf of the Sellers and payment to them will be a good and
           sufficient discharge to the Buyer and the Buyer will not be further
           concerned as to the application of the moneys so paid whether under
           the Sellers' Agreement or otherwise (including pursuant to any
           release of sums by the Sellers' Solicitors to the Sellers pursuant to
           paragraph 6 of Schedule 5).

                                       30
<PAGE>

7.4        No party is obliged to complete this Agreement unless the purchase of
           all the Shares and the purchase of all of the ROC Business Assets is
           completed simultaneously.

8.         BUSINESS CONTRACTS

           On Completion each ROC Seller shall assign to the Buyer, such
           assignment being deemed to be with effect from the Effective Date all
           its rights, title and interest under or pursuant to all the ROC
           Business Contracts to which that ROC Seller is a party.

9.         RECORDS AND ACCESS

9.1        Without prejudice to any other provision of this Agreement, the Buyer
           and its agents will be entitled for a period of seven years from
           Completion on giving reasonable notice to a ROC Seller to have access
           during normal business hours and to take copies (at its own expense)
           of any books, documents or other records in the ROC Seller's
           possession relating to the ROC Business or the ROC Business Assets
           and which have not been delivered to the Buyer.

9.2        Each Seller, the Managing Shareholder and each Ridgewood Fund, and
           each of its agents, will, where necessary for any legitimate business
           purpose and subject to providing confidentiality undertakings in a
           form reasonably acceptable to the Buyer, including but not limited
           to, the completion of its accounts or tax returns or for dealing with
           any Relevant Claims be entitled for a period of seven years from
           Completion on giving reasonable notice to the Buyer to have access
           during normal business hours and to take copies of (at its own
           expense) any of the records which were delivered to the Buyer
           pursuant to this Agreement.

10.        FUTURE ENQUIRIES AND ASSISTANCE

10.1       Each Seller will after Completion refer enquiries received by it
           relating to the ROC Business as carried out at Completion or to the
           Group to the Buyer; provided, however, that in the event that a
           Seller receives an enquiry relating to the ROC Business or to the
           Group that is made by or on behalf of any Governmental Entity,
           including, without limitation, the SEC or any adjudicatory body with
           competent jurisdiction, or in the event of litigation involving the
           ROC Business or the Group, the Seller shall notify the Buyer of such
           enquiry or such litigation, but may also refer such enquiry or
           litigation to the Managing Shareholder, the Ridgewood Funds and their
           respective shareholders, and their legal, accounting and other
           advisors.

10.2       The Share Sellers shall use reasonable endeavours to correct the
           error contained in OFGEM's records in respect of the RO and CCL
           accreditation for all landfill gas generation capacity installed by
           or on its behalf at the landfill site at which Jameson Road Energy
           Limited operates and shall keep the Buyer reasonably informed of the
           progress of such correction.

                                       31
<PAGE>

10.3       Arbutus shall use reasonable endeavours to obtain, as soon as
           reasonably practicable following Completion, a deed of termination in
           a form reasonably approved by the Buyer, duly signed by all the
           parties, to the agreement dated 18 July 1996 between (1) Redland
           Aggregates Limited (2) Mountsorrel Energy Limited (3) Hambro Group
           Investments Limited (4) Combined Landfill Projects Limited (now known
           as CLPE 1991 Limited) (the "Mountsorrel Agreement"). Until the
           delivery of a certified copy of such deed of termination to the Buyer
           and subject to the Buyer acting reasonably in approving the deed of
           termination and provided that the Buyer procures that CLPE 1991
           Limited enters into such approved form deed of termination, Arbutus
           shall indemnify, keep indemnified and hold harmless CLPE 1991 Limited
           against all Liabilities incurred by CLPE 1991 Limited in connection
           with any payment required to be made by CLPE 1991 Limited under the
           Mountsorrel Agreement.

11.        WARRANTIES AND RELEVANT CLAIMS

11.1       Each Share Seller severally, but not jointly, warrants to the Buyer
           in the terms of the Title Warranties with respect of itself and the
           shares being sold by that Share Seller as at the date of the
           Agreement.

11.2       Each Share Seller jointly and severally warrants to the Buyer in the
           terms of the Tax Warranties.

11.3       Each Share Seller jointly and severally warrants to the Buyer in the
           terms of the Operational Warranties as at the date of this Agreement.

11.4       Each ROC Seller severally, but not jointly, warrants to the Buyer in
           the terms of the ROC Warranties in respect of itself and the ROC
           Business Assets being sold by that ROC Seller only.

11.5       The Warranties are qualified by all facts, matters and information
           Disclosed.

11.6       Each Warranty is to be construed independently and is not limited or
           restricted by any other Warranty or any other term of this Agreement.

11.7       Subject to clauses 11.8, 11.9 and 11.15, the Warranties given by the
           Share Sellers and the ROC Sellers (as appropriate) will be deemed to
           be repeated on a several basis immediately before the Completion Date
           by reference to the facts and circumstances existing at the
           Completion Date (the "Repeated Warranties" and "Repeated Warranty"
           shall be any of them). For this purpose only, where in a Repeated
           Warranty there is an express or implied reference to the "the date of
           this Agreement" or an equivalent term, that reference is to be
           construed as a reference to the Completion Date.

                                       32
<PAGE>

11.8       The Repeated Warranties will only relate to facts, matters or events
           existing at or immediately prior to the Completion Date and, will all
           (other than the Title Warranties) be qualified by those matters
           Disclosed in the Disclosure Letter. The Buyer's only remedy for
           breach or breaches of the Repeated Warranties shall be if the breach
           or breaches of the Repeated Warranties has, taking account of the
           limitations on liability set out in Schedule 7 (but, for the purposes
           of this clause 11.8, excluding the provisions of paragraph 2 of
           Schedule 7), an aggregate value exceeding (pound sterling)6,000,000
           in which case the only remedy shall be that available to it under
           clause 12.1.1. For clarity, the Buyer will have no remedy in the case
           of any breach or breaches of the Repeated Warranties the aggregate
           value of which is equal to or less than (pound sterling)6,000,000.

11.9       For the purposes of determining the aggregate value of the breach or
           breaches under clause 11.8 and subject to clause 5.1 (where the
           context requires), in the event that the parties fail to agree on the
           value within five Business Days of the Sellers receiving notice of
           termination, the value will be determined by a Queens Counsel of at
           least 10 years' standing (nominated jointly by the Representative
           referred to in clause 5 and the Buyer or otherwise appointed by the
           President of the Law Society of England and Wales) on the application
           of any party to this Agreement who shall be instructed to provide an
           opinion on the likelihood of the success of such claim and the likely
           quantum of such claim and his/her determination shall be binding on
           all concerned and shall be given by him/her as an expert and not as
           an arbitrator and the Arbitration Acts 1950 and 1966 shall not apply
           to the same. For the avoidance of doubt, save where the value of any
           breach(es) has been agreed by the parties to be in excess of (pound
           sterling)6,000,000, the Agreement shall not be terminated unless and
           until such barrister determines that the aggregate value of all
           breaches exceeds (pound sterling)6,000,000.

11.10      Where any Warranty or Repeated Warranty refers to the knowledge,
           information, belief or awareness of a Seller (or similar expression),
           each Seller will be deemed to be aware of all information of which it
           has actual knowledge and all information it received after making due
           enquiry of the persons listed below or which it would have received
           had such due enquiry been made as at the date the Warranties or
           Repeated Warranties are given but no Seller will be deemed to have
           made enquiry of any other person and will not be liable for breach of
           Warranty or Repeated Warranty should a fact or circumstance which
           would otherwise constitute a breach of Warranty or Repeated Warranty
           be known to any person other than those listed below:

           Harry Wyndham;

           Douglas Wilson;

           Randall Holmes;

                                       33
<PAGE>

           Robert Swanson

           Alexandra Pentecost;

           Aidan Marsh;

           John Paul Yates;

           Andrew West; and

           Dominic Greenough.

11.11      Each of the Sellers shall promptly disclose in writing to the Buyer
           anything which becomes known to it prior to Completion which is
           (taking into account the provisions of paragraph 2.2 of Schedule 7)
           inconsistent with the Warranties or the contents of the Disclosure
           Letter.

11.12      Notwithstanding any other provision of this Agreement, the liability
           of the Sellers in respect of any Relevant Claim will be limited in
           accordance with the provisions of Schedule 7.

11.13      Each Seller waives and may not enforce any right which that Seller
           may have against any Group Member, or any officer, employee, agent or
           professional adviser of any Group Member, on which or on whom that
           Seller may have relied in agreeing to any term of this Agreement or
           any statement in the Disclosure Letter save to the extent of any
           fraud or misconduct or omission that is dishonest, reckless or wilful
           by such person towards the Seller in this regard.

11.14      The Buyer waives and may not enforce on behalf of itself and each
           other member of the Buyer's Group any right which the Buyer may have
           against any officer, employee, agent, representative or professional
           adviser of any Seller or the Managing Shareholder on which it may
           have relied before agreeing to any term of this Agreement or any
           other agreement entered into pursuant to this Agreement save to the
           extent of any fraud or misconduct or omission that is dishonest,
           reckless or wilful by such person towards the Buyer in this regard.

11.15      On the Completion Date, the Sellers shall deliver to the Buyer a
           certificate relating to the Repeated Warranties (the "Repeated
           Warranties Bring Down Certificate") a proforma for which is in the
           agreed terms. The Repeated Warranties Bring Down Certificate will set
           out exceptions to the Repeated Warranties but will not result in or
           create any liability for the Sellers save as provided in this clause
           11.

                                       34
<PAGE>

12.        TERMINATION

12.1       The Buyer may by notice in writing to the Sellers at or at any time
           prior to Completion elect to terminate this Agreement without
           liability on the part of the Buyer if :

           12.1.1     any fact, matter or event comes to the notice of the Buyer
                      at or at any time prior to Completion which amounts to a
                      breach or breaches of one or more Repeated Warranty by
                      reference to facts or matters existing at that time and
                      not previously Disclosed in the Disclosure Letter, and
                      such breach or breaches taking account of the limitations
                      of liability set out in Schedule 7 (other than paragraph
                      2), give rise to a Relevant Claim or Relevant Claims, the
                      value of which, in aggregate, exceeds (pound
                      sterling)6,000,000;

           12.1.2     the Renewables Obligation Order 2006 and/or the Renewables
                      Obligation Order (Scotland) 2006 and/or the Renewables
                      Obligation Order (Northern Ireland) 2006 (the "Orders") is
                      repealed with no replacement legislation being proposed or
                      implemented providing for a similar regime covering the
                      generation of electricity from qualifying renewable
                      sources as defined in the Orders;

           12.1.3     all Non-Fossil Fuel Obligation Contracts entered into
                      between the Non Fossil Purchasing Agency Limited and
                      generators pursuant to section 32 Electricity Act 1989 are
                      terminated; or

           12.1.4     in accordance with clause 6.8, a breach or breaches of the
                      Sellers' obligations which gives rise to a claim or claims
                      for breach of contract which, in aggregate, exceed
                      (pound sterling)6,000,000;

           12.1.5     the Gross Macquarie Payment increases above (pound
                      sterling)130,000,000 or reduces below (pound
                      sterling)110,000,000 as a result of the interest rate
                      adjustment to the Purchase Price under Schedule 14; or

           12.1.6     without prejudice to the Buyer's rights under clause 13,
                      if the Ridgewood Letter of Undertaking is withdrawn or the
                      Managing Shareholder attempts to vary the same provided
                      that nothing in this clause 12.1.6 shall limit the
                      obligations of the Managing Shareholder under the same.

12.2       Ridgewood and the ROC Sellers may jointly by notice in writing to the
           Buyer at or at any time prior to Completion elect to terminate this
           Agreement without liability on the part of any of the Sellers:

                                       35
<PAGE>

           (i)     if they receive a Superior Offer. A "Superior Offer" is an
                   unsolicited, bona fide, written proposal to any of Ridgewood
                   or the ROC Sellers, any of the Ridgewood Funds or their
                   respective shareholders, the Managing Shareholder or the
                   board of the Company, with committed financing in place or
                   without a financing condition, relating to the acquisition
                   of the Shares and the ROC Business Assets which Ridgewood
                   and the ROC Sellers jointly determine or the Managing
                   Shareholder determines in good faith, after advice from
                   their financial adviser, is more favourable to the
                   shareholders of the Ridgewood Funds than the transaction
                   contemplated by this Agreement. Arbutus shall be bound by
                   any notice given by Ridgewood and the ROC Sellers pursuant
                   to this clause 12.2 and shall have no right to challenge the
                   decisions or actions of the Managing Shareholder, Ridgewood
                   and the ROC Sellers under this clause 12.2; or

           (ii)    if Macquarie withdraws or attempts to vary the Macquarie
                   Letter of Undertaking provided that nothing in this clause
                   shall limit the obligations of Macquarie under the same; or

           (iii)   if the Buyer has not exercised its right under clause 4.8.1
                   by the Long Stop Date.

12.3       Subject to clause 6.8, if the Buyer does not elect to terminate
           irrespective of its rights under clause 12.1 then the parties confirm
           that no right to damages or compensation pursuant to clause 12.1 will
           arise in favour of the Buyer in respect of the facts or circumstances
           giving rise to such Buyer's rights in clause 12.1. For the avoidance
           of doubt nothing in this clause restricts or prohibits the Buyer from
           enforcing its rights under clause 6.8.

13.        BREAK FEE

13.1       In the event of a Sale (as defined in clause 13.2) at any time within
           the period of eighteen months from the termination of this Agreement
           pursuant to clause 12.2(i) other than to the Buyer (or such person
           pursuant to clause 3.7 or such other person agreed between the
           parties to this Agreement) then the Sellers will pay Break Fee A in
           cash in cleared funds to the Buyer within 10 Business Days after
           completion of the Sale.

13.2       For the purposes of clauses 13.1, 13.6, 13.8 and 13.10, a Sale shall
           mean one single transaction or a series of related transactions
           whereby majority ownership of (i) the Company and (ii) such ROC
           Sellers or ROC Business Assets (which together account for more than
           19 mega watts of electricity generation from land fill gas) is
           transferred (directly or indirectly including via any affiliated
           entity of any Seller) to a single third party buyer or affiliated
           third party buyers.

13.3       In the event of a Sale (as defined in clause 13.4) at any time within
           a period of eighteen months from the termination of this Agreement
           pursuant to clause 12.2(i) other than to the Buyer (or such person
           pursuant to clause 3.7 or such other persons agreed between the
           parties to this Agreement) then the Sellers will pay Break Fee B in
           cash in cleared funds to the Buyer within 10 Business Days after
           completion of the Sale.

                                       36
<PAGE>

13.4       For the purposes of clauses 13.3, 13.7, 13.9 and 13.10, a Sale shall
           mean one single transaction or a series of related transactions
           whereby majority ownership of the Company or more than 50% of the
           value of its assets is transferred (directly or indirectly including
           via any associated entity of any Seller) to a single third party
           Buyer or affiliated third party buyers.

13.5       For the purposes of this clause 13, a Sale shall not include
           transfers among the Sellers or Affiliates of any Seller or to any
           entity controlled by the Managing Shareholder or transfers to any
           shareholder or shareholders of any Ridgewood Fund or any transfer
           pursuant to any dissolution, reorganisation, assignment for the
           benefit of creditors, or bankruptcy of any Seller or any Affiliate of
           any Seller or any Ridgewood Fund or transfers to any member of the
           Group.

13.6       In the event of a Sale (as defined in clause 13.2) at any time within
           the period of eighteen months from the termination of this Agreement
           pursuant to clause 6.4 as a result of a withdrawal of the Fairness
           Opinions, the Sellers will pay Break Fee A in cash in cleared funds
           to the Buyer within 10 Business Days after completion of the Sale.

13.7       In the event of a Sale (as defined in clause 13.4), at any time
           within the period of eighteen months from the termination of this
           Agreement pursuant to clause 6.4 as a result of a withdrawal of the
           Fairness Opinions, the Sellers will pay Break Fee B in cash in
           cleared funds to the Buyer within 10 Business Days after completion
           of the Sale.

13.8       In the event of a Sale (as defined in clause 13.2, at any time within
           the period of eighteen months from the date on which the Managing
           Shareholder fails to recommend the approval of the transactions
           contemplated in this Agreement (on the terms set out in this
           Agreement and the documents contemplated or referred to herein) to
           the shareholders of the Sellers (in each case to the extent each such
           approval is required by law), then the Sellers will pay Break Fee A
           in cash in cleared funds to the Buyer within 10 Business Days after
           completion of the Sale.

13.9       In the event of a Sale (as defined in clause 13.4) at any time within
           the period of eighteen months from the date on which the Managing
           Shareholder fails to recommend the approval of the transactions
           contemplated in this Agreement (on the terms set out in this
           Agreement and the documents contemplated or referred to herein) to
           the shareholders of the Sellers (in each case to the extent each such
           approval is required by law), then the Sellers will pay Break Fee B
           in cash in cleared funds to the Buyer within 10 Business Days after
           completion of the Sale.

                                       37
<PAGE>

13.10      In the event of a Sale (as defined in either clause 13.2 or clause
           13.4) at any time within the period of nine months from the
           termination of this Agreement as a result of a failure by the Sellers
           to provide the certificates referred to in clause 6.1.1, then the
           Sellers will pay the sum of (pound sterling)1,200,000 in cleared
           funds to the Buyer within 10 Business Days of the Sale.

13.11      For the avoidance of doubt, the Sellers will not be obliged to pay
           more than one break fee under this clause 13 and, if a break fee is
           payable under this clause 13, the Buyer shall have no further right
           to make any further claim under this Agreement for damages or
           otherwise and the Sellers' liability to the Buyer under this
           Agreement shall be limited to the relevant break fee payable.

14.        CONFIDENTIALITY

14.1       Each Seller severally undertakes to the Buyer and each Group Member,
           and the Buyer undertakes to each Seller and each Group Member, each
           on its own behalf and on behalf of its officers, directors,
           employees, agents and representatives, that it will not, at any time
           prior to or after Completion, make use of, disclose or cause any
           unauthorised disclosure to any person (except those authorised by the
           other party in writing to know) of any Confidential Information
           except:

           (i)     so far as required by Law, or to the extent relevant, the
                   SEC, any stock exchange or listing authority or the Panel on
                   Takeovers and Mergers (provided that the disclosing party
                   adheres to the standards set forth in clause 14.3),

           (ii)    so far as required by judicial proceeding or action by a
                   Governmental Entity, (provided that the disclosing party
                   adheres to the standards set forth in clause 14.4),

           (iii)   as necessary for performance of any of such party's duties
                   hereunder or the duties of the Managing Shareholder or any of
                   the Ridgewood Funds in connection with the transactions
                   contemplated by this Agreement, or as expressly provided
                   herein, and

           (iv)    for disclosures to officers, directors, or employees of the
                   Sellers or their affiliates and to their auditors, legal
                   counsel, and other advisors (provided, however, that such
                   persons have a need to know and have been informed of the
                   confidential nature of the information).

           (v)     for disclosures to the provider of finance to the Buyer for
                   the purposes of funding the Buyer's financial obligations
                   under this Agreement and such finance provider's advisers.

14.2       As to any party to this Agreement, the Managing Shareholder and the
           Ridgewood Funds, Confidential Information does not include any
           information, which:

                                       38
<PAGE>

           (i)     is independently developed by such person without violating
                   that person's obligations hereunder or in connection
                   herewith, or

           (ii)    was publicly available prior to such person's receipt of such
                   information or thereafter became publicly available (other
                   than as a result of disclosure by such party or such person's
                   employees, agents or representatives in violation of the
                   terms of this Agreement).

           Information shall be deemed "publicly available" if it becomes a
           matter of public knowledge or is contained in materials available to
           the public or is obtained from any source other than the party
           providing such information (or that person's directors, officers,
           employees, agents or outside advisors), provided that such source is
           not to such person's knowledge prohibited from disclosing such
           information by a legal, contractual or fiduciary obligation to the
           relevant person and did not obtain the information from an entity or
           person prohibited from disclosing such information by a legal,
           contractual or fiduciary obligation to the relevant person.

14.3       In the event that any party to this Agreement, the Managing
           Shareholder or any of the Ridgewood Funds, or any of such person's
           employees, agents or representatives, believe that they are required
           by Law, or to the extent relevant, the SEC, any stock exchange or
           listing authority or government entity or the Panel on Takeovers and
           Mergers to disclose all or any part of the Confidential Information,
           such person agrees to (i) promptly so notify the person whose
           Confidential Information is requested, (ii) cause their legal counsel
           to consult with legal counsel to the person whose Confidential
           Information is requested regarding such obligation, and (iii)
           endeavour to preserve the confidentiality of the Confidential
           Information to the greatest extent possible consistent with any
           obligation to comply with such Law, or to the extent relevant, the
           SEC, any stock exchange or listing authority or the Panel on
           Takeovers and Mergers. Any person making disclosure in accordance
           with this paragraph shall not be liable for such disclosure unless
           such disclosure was caused by or resulted from a previous disclosure
           by that party or any of such person's employees, agents or
           representatives not permitted by this Agreement.

14.4       In the event that any party to this Agreement, the Managing
           Shareholder or any of the Ridgewood Funds, or any of such person's
           employees, agents or representatives, is requested in any judicial
           proceeding or action by a Governmental Entity to disclose any
           Confidential Information, such person will provide the person whose
           Confidential Information is requested, with prompt prior written
           notice so that the person whose Confidential Information is requested
           may seek a protective order or other appropriate remedy and/or waive
           compliance with the provisions of this Agreement. In the event that
           the person whose Confidential Information is requested is unable to
           obtain such protective order or other appropriate remedy, the person
           subject to the judicial proceeding or action by a Governmental Entity
           will (i) furnish only that portion of the Confidential Information
           which such person is advised by its legal counsel is legally
           required, (ii) give the person whose Confidential Information is
           requested written notice of the information to be disclosed as far in
           advance as practicable, and (iii) exercise commercially reasonable
           efforts to obtain assurance that confidential treatment will be
           accorded the Confidential Information so disclosed.

                                       39
<PAGE>

15.        BUYER'S WARRANTIES AND COVENANTS

15.1       The Buyer warrants to each Seller as at the date of this Agreement
           and at Completion that:

           15.1.1     it is a private limited company incorporated and validly
                      existing under the laws of England and Wales;

           15.1.2     the Buyer has full power to enter into and perform this
                      Agreement and that this Agreement constitutes a binding
                      obligation on the Buyer in accordance with its terms;

           15.1.3     the execution and delivery of and the performance by the
                      Buyer of its obligations under this Agreement will not:

                      15.1.3.1   result in breach of any provision of its
                                 memorandum or articles of association; or

                      15.1.3.2   result in a breach of, or constitute a default
                                 under, any:

                      (a)        agreement, licence or other instrument; or

                      (b)        order, judgment or decree of any court,
                                 governmental agency of regulatory body to which
                                 it is a party or by which it is bound;

           15.1.4     save as provided in this Agreement, all consents,
                      permissions, approvals and agreements of the shareholders
                      of the Buyer or any third parties which are necessary or
                      desirable for the Buyer to obtain in order to enter into
                      and perform this Agreement in accordance with its
                      respective terms have been unconditionally obtained in
                      writing and have been disclosed in writing to the Sellers;
                      and

           15.1.5     the Buyer (and all other parties thereto) have all duly
                      entered into the Funding Agreements and that such Funding
                      Agreements are conditional only upon the matters set out
                      in the Funding Agreements.

15.2       Upon the Funding Agreements being entered into, the Buyer covenants
           that it will not amend any of the conditions precedent or conditions
           to drawdown as set out in the Funding Agreements nor amend any other
           provisions of the Funding Agreement to the extent such amendment does
           or could materially adversely affect the Sellers.

                                       40
<PAGE>

15.3       The Buyer will at no cost to the Buyer or the Group after Completion
           procure that the Company provides all reasonable assistance and
           reasonable access to all relevant records to Douglas Wilson and Randy
           Holmes for the purpose of enabling them to recover any Tax and
           National Insurance Contributions paid by them or the Company on the
           receipt of the bonus amounts which were inadvertently paid to them
           and which they each are repaying to the Company on Completion in
           accordance with paragraph 7 of Schedule 5.

16.        POST-COMPLETION PROVISIONS

16.1       To assure to the Buyer the full benefit of the business and goodwill
           of the Group and the ROC Business Assets, each of the Sellers
           undertakes by way of further consideration for the obligations of the
           Buyer under this Agreement, as separate and independent agreements,
           that it will not without the Buyer's prior written consent:

           16.1.1     for a period of 3 years from Completion directly or
                      indirectly, solicit for services of any employee of a
                      member of the Group earning over (pound sterling)30,000
                      per annum;

           16.1.2     for a period of 3 years from Completion, directly or
                      indirectly carry on a business activity in the United
                      Kingdom under a name which is the same as, or similar to,
                      the name of a member of the Group or a name used for
                      business purposes by a member of the Group; or

           16.1.3     for a period of 3 years at any time after Completion, make
                      adverse public comments in relation to the Buyer, the
                      Group or their respective businesses or employees
                      excluding in connection with any litigation or proceedings
                      between the parties (including in the case of the Buyer,
                      the Buyer's Group).

16.2       The Sellers agree that the covenants and undertakings contained in
           clause 16.1 are reasonable and are entered into for the purpose of
           protecting the goodwill, confidential information and trade
           connections of the businesses of the members of the Group and the ROC
           Business Assets.

16.3       Each undertaking contained in clause 16.1 shall be construed as a
           separate undertaking. If one or more of them is held to be against
           the public interest or unlawful or an unreasonable restraint of
           trade, the remaining undertakings shall continue to bind the Sellers.

                                       41
<PAGE>

17.        ANNOUNCEMENTS

17.1       Subject to clause 17.2, no party will from the date of this Agreement
           until the Business Day following Completion make or send any press or
           other public announcement, communication or circular (whether to
           shareholders, employees, customers, suppliers or otherwise)
           concerning the transactions contemplated by this Agreement or any
           matter ancillary to it unless it has first obtained prior written
           approval of the Buyer (in the case of the Sellers) or with the prior
           written approval of Ridgewood UK LLC, Arbutus Energy Limited and the
           Managing Shareholder for and on behalf of the ROC Sellers (in the
           case of the Buyer or any member of the Buyer's Group).

17.2       Clause 17.1 does not apply to any announcement, communication or
           circular:

           17.2.1     of any of the Sellers or any of the Ridgewood Funds sent
                      to their respective shareholders, or of the Managing
                      Shareholder sent to any such shareholders or of the
                      Managing Shareholder to funds operated by it or to
                      Affiliates of it, after the date of this Agreement in
                      relation to the transactions contemplated by this
                      Agreement (provided that it has first been approved by the
                      Buyer, such approval not to be unreasonably withheld or
                      delayed);

           17.2.2     made or sent by the Buyer after Completion to a customer,
                      client or supplier of the Group informing it of the
                      Buyer's purchase of the Shares; or

           17.2.3     required by the law of any relevant jurisdiction or, to
                      the extent relevant, the regulations of the SEC or any
                      stock exchange or listing authority or the Panel on
                      Takeovers and Mergers, or any other governmental or
                      regulatory organisation provided, if reasonably
                      practicable, that the party required to make it has first
                      consulted and taken into account the reasonable
                      requirements of the other parties as to its timing,
                      content and manner of making or despatch.

17.3       Each party will, for a period of 90 Business Days from the date of
           Completion, give the others not less than 1 Business Day's notice of
           the content of any proposed press release concerning the transactions
           contemplated by this Agreement or any matter ancillary to it provided
           that, for the avoidance of doubt, nothing in this clause 17.3 shall
           apply to any release circulated to those persons specified in clause
           17.2.1.

18.        COSTS

18.1       Except where expressly stated otherwise in this Agreement, each party
           to this Agreement will bear such party's own costs and expenses
           relating to the negotiation, preparation and implementation of this
           Agreement. No Group Member will bear any part of such costs and
           expenses.

                                       42
<PAGE>

18.2       For the avoidance of doubt, the Buyer will pay any stamp duty in
           relation to the transfer of the Shares and the ROC Business Assets.

19.        NOTICES

19.1       Any notice or other communication given in connection with this
           Agreement will be in writing and will be delivered personally or sent
           by courier or recorded delivery or by fax to the recipient's address
           set out at clause 19.3 or to any other address which the recipient
           has notified in writing to the sender received not less than 7
           Business Days before the notice was despatched.

19.2       A notice or other communication is deemed given:

           19.2.1     if delivered personally, upon delivery at the address
                      provided for in this clause; or

           19.2.2     if sent by courier or recorded delivery upon delivery and
                      receipt at the address provided for in this clause; or

           19.2.3     if sent by fax, when confirmation of its transmission has
                      been received by the sender's fax machine

           provided that, if it is delivered personally or sent by fax on a day
           which is not a Business Day or after 4.00 pm on a Business Day, it
           will instead be deemed to have been given or made on the next
           Business Day.

19.3       The addresses referred to in clause 19.1 are:

           Ridgewood

           To:                                        Ridgewood UK LLC

           Address:                                   947 Linwood Avenue,
                                                      Ridgewood, New Jersey,
                                                      07450, USA

           For the attention of:                      Mr Douglas Wilson

           Fax:                                       001 201447 0474

                                       43
<PAGE>

           The Arbutus Seller

           To:                                        Arbutus Energy Limited

           Address:                                   Charter Place

                                                      23-27 Seaton Place

                                                      St. Helier, Jersey,
                                                      JE1 1JY

                                                      Channel Islands

           For the attention of:                      Mark Baker

           Fax:                                       01534 835 888

           ROC 1

           To:                                        Ridgewood ROC 2003 LLC

           Address:                                   947 Linwood Avenue,
                                                      Ridgewood, New Jersey
                                                      07450, USA

           For the attention of:                      Douglas Wilson

           Fax:                                       001 201 447 0474

           ROC 2

           To:                                        Ridgewood ROC II 2003 LLC

           Address:                                   947 Linwood Avenue,
                                                      Ridgewood, New Jersey
                                                      07450, USA

           For the attention of:                      Douglas Wilson

           Fax:                                       001 201 447 0474

           ROC 3

           To:                                        Ridgewood ROC III 2003 LLC

           Address:                                   947 Linwood Avenue,
                                                      Ridgewood, New Jersey
                                                      07450, USA

           For the attention of:                      Douglas Wilson

           Fax:                                       001 201 447 0474

                                       44
<PAGE>

           ROC 4

           To:                                        Ridgewood ROC IV 2004 LLC

           Address:                                   947 Linwood Avenue,
                                                      Ridgewood, New Jersey
                                                      07450, USA

           For the attention of:                      Douglas Wilson

           Fax:                                       001 201 447 0474

           The Buyer

           To:                                        MEIF LG Energy Limited

           Address:                                   Level 28, CityPoint,
                                                      1 Ropemaker Street,
                                                      London, EC2Y 9HD

           For the attention of:                      David Tilstone

           Fax:                                       0207 065 2041

19.4       The provisions of this clause will not apply, in the case of service
           of court documents, to the extent that such provisions are
           inconsistent with the Civil Procedure Rules.

20.        ASSIGNMENT

20.1       Subject to clause 20.2, no party may assign the benefit of, and any
           of its rights under, this Agreement without the prior consent of the
           other parties, such consent not to be unreasonably withheld or
           delayed.

20.2       Notwithstanding clause 20.1, the Buyer shall be entitled to assign
           the benefit of any of its rights under this Agreement to any member
           from time to time of the Buyer's Group and/or any lender, bank or
           financial institution which provides funding to the buyer or the
           Buyer's Group, in each case without requiring the consent of any of
           the Sellers provided that if such member of the Buyer's Group ceases
           to be a member of the Buyer's Group the benefit transferred to it
           shall automatically and unconditionally be transferred back to a
           member of the Buyer's Group and further provided that the liability
           of the Sellers shall not be increased or extended as a result of such
           assignment. For clarity, the burden of any of the Buyer's rights
           under this Agreement shall remain with the Buyer.

                                       45
<PAGE>

21.        FURTHER ASSURANCE

           Each party will use all reasonable endeavours to (at the other
           party's cost) do, or procure the doing of, all acts and things and
           execute, or procure the execution of, all documents as any other
           party reasonably considers necessary to give full effect to the terms
           of this Agreement including, without limitation, the transfer of the
           ROC Business Assets.

22.        RIGHTS OF THIRD PARTIES

           Other than the Ridgewood Funds and the Managing Shareholders for the
           account of the Ridgewood Funds, and Douglas Wilson and Randy Holmes
           in relation to clause 15.3, who shall have the right to enforce the
           terms of this Agreement by virtue of the Contracts (Rights of Third
           Parties) Act 1999, the parties to this Agreement do not intend that
           any of its terms will be enforceable by virtue of the Contracts
           (Rights of Third Parties) Act 1999 by any person not a party to it.

23.        ENTIRE AGREEMENT

23.1       This Agreement and the documents referred to in it constitute the
           entire agreement between the parties and supersede and replace any
           previous agreement, understanding, undertaking, representation,
           warranty or arrangement of any nature whatsoever between the parties
           relating to the subject matter of this Agreement.

23.2       The Buyer acknowledges and agrees that in entering into this
           Agreement, and the documents referred to in it, it has not relied on,
           and will have no remedy in equity, contract, tort, under the
           Misrepresentation Act 1967 or otherwise in respect of, any
           representation other than as set out in this Agreement and each
           document referred to in it.

23.3       Save for the termination rights expressly provided for in clause 12,
           the only remedy available to the Buyer in respect of this Agreement
           and the documents referred to in it is damages for breach of contract
           and, for the avoidance of doubt, it will not save in accordance with
           clause 12 have the right to rescind or terminate this Agreement or
           the documents referred to in it for breach of contract, negligent or
           innocent misrepresentation or otherwise.

23.4       Nothing in this clause will have the effect of limiting or
           restricting any liability of the parties arising as a result of any
           fraud.

24.        GENERAL

24.1       Unless otherwise provided, any outstanding obligation contained in
           this Agreement will remain in force notwithstanding Completion.

                                       46
<PAGE>

24.2       Failure or delay by any party in exercising any right or remedy under
           this Agreement will not in any circumstances operate as a waiver of
           it, nor will any single or partial exercise of any right or remedy in
           any circumstances preclude any other or further exercise of it or the
           exercise of any other right or remedy.

24.3       Any waiver of any breach of, or any default under, any of the terms
           of this Agreement will not be deemed a waiver of any subsequent
           breach or default and will in no way affect the other terms of this
           Agreement.

24.4       No variation of this Agreement will be valid unless it is in writing
           and signed by or on behalf of each party to this Agreement but no
           variation will require the consent of any Group Member.

24.5       Save as expressly provided in this Agreement all rights or remedies
           provided by law are excluded.

25.        GOVERNING LAW AND JURISDICTION

25.1       The formation, existence, construction, performance, validity and all
           aspects whatsoever of this Agreement or of any term of this Agreement
           will be governed by the law of England and Wales.

25.2       The courts of England and Wales will have exclusive jurisdiction to
           settle any dispute which arises out of or in connection with this
           Agreement. The parties irrevocably agree to submit to that
           jurisdiction.

26.        COUNTERPARTS

           This Agreement may be executed in any number of counterparts and by
           the parties to it on separate counterparts, each of which when
           executed and delivered will be an original, but all the counterparts
           will together constitute one and the same agreement.

27.        EXECUTION

           The parties have shown their acceptance of the terms of this
           Agreement by executing it at the end of the Schedules.

                                       47
<PAGE>

                                   SCHEDULE 1

                                The Share Sellers

Name and  address  of           Number and class         Relevant Proportion
registered  and                    of Shares
beneficial owner                  to be sold

RIDGEWOOD UK LLC            8,053,012  'A'  ordinary            88%
947 Linwood Avenue,      shares of (pound sterling)1.00
Ridgewood,
New Jersey,07450,
USA

ARBUTUS ENERGY LIMITED      1,098,138  'B'  ordinary            12%
Charter Place,           shares of (pound sterling)1.00
23-27 Seaton Place,
St Helier,
Jersey,
JE1 1JY,
Channel Islands

                                       48
<PAGE>

                                   SCHEDULE 2

                                     Part 1

                             Details of the Company

                                    [OMITTED]

                                     Part 2

                         Details of other Group Members

                                    [OMITTED]

                                     Part 3

                                Dormant Companies

                                    [OMITTED]

                                       49
<PAGE>

                                   SCHEDULE 3

                            Part 1 - Share Warranties

1.         Schedules 1 & 2; Capital

1.1        The information contained in Schedules 1 and 2 is true and accurate
           in all respects.

1.2        The Shares and the issued shares of each other Group Member are fully
           paid and are legally and beneficially owned and registered as set out
           in Schedules 1 and 2 free from any Encumbrance and were not issued at
           a discount.

1.3        No Group Member has allotted or issued any share capital other than
           the shares shown in Schedules 1 and 2 as being issued.

1.4        No Group Member has any interest in the share capital of any body
           corporate save as specified in Schedule 2 and no Group Member has
           agreed to acquire shares or loan capital of a body corporate which is
           not listed in Schedule 2.

1.5        Except as required by this Agreement, there are no agreements or
           arrangements in force which provide for the issue, allotment or
           transfer of, or grant to any person the right (whether conditional
           otherwise) to call for the issue, allotment or transfer of, share or
           loan capital of a Group Member (including an option or right of
           pre-emption or conversion).

1.6        The Register of Member of each Group Member has been properly kept
           and contains an accurate record at the date of this Agreement of the
           matters with which it should deal and no notice or allegation has
           been received that the register of members of each Group Member is
           incorrect or should be rectified.

SELLER

2.         Capacity

           Subject to the approval of the Sellers and the shareholders of each
           of the Ridgewood Funds, each Share Seller has full power to enter
           into and perform this Agreement and this Agreement constitutes
           obligations binding on such Share Seller in accordance with its
           terms.

3.         Insiders' interests

3.1        There is not outstanding any Contract to which any Group Member is or
           was a party and in which any Insider is or was interested in any way
           whatsoever (excluding any Contract of employment between any Group
           Member and any of its directors Disclosed).

                                       50
<PAGE>

3.2        No Insider has so far as each Share Seller is aware any interest,
           direct or indirect, in any trade or business which competes with any
           Group Member's business.

3.3        None of the Sellers, nor any Insider, will at Completion be indebted
           to a Group Member.

3.4        No Group Member will immediately following Completion be indebted to
           a Seller.

4.         Transactions involving directors

           No Group Member has been a party to a transaction to which sections
           320 or 330 CA 1985 may apply.

5.         General Corporate

5.1        No power of attorney given by a Group Member is in force other than
           those given to BoS pursuant to the Bank Facilities (which will be
           revoked and cancelled at Completion).

5.2        No authorities (express or implied) by which a person (other than an
           officer of any Group Member) may enter into a contract or commitment
           on behalf of a Group Member are outstanding.

5.3        No Group Member has a liability as a result of having had only one
           member or has been in breach of law and no Group Member has failed to
           comply with a requirement applicable to it as a result of having any
           company having had only one member at any time.

5.4        The statutory books and registers of each Group Member have been
           properly kept in all material respects and contain a materially
           accurate record at the date of this Agreement of the matters with
           which they should deal and no notice or allegation has been received
           that it is incorrect or should be rectified.

5.5        None of the Shares was, or represents assets which were, the subject
           of a transfer at an undervalue (within the meaning of section 238 or
           339 Insolvency Act 1986) within the past five years.

5.6        All material returns, particulars, resolutions and documents required
           to be filed with the Registrar of Companies in respect of each Group
           Member have been duly filed.

                                       51
<PAGE>

ACCOUNTS AND RECORDS

6.         The Accounts

6.1        The Accounts (a copy of which is enclosed in the Disclosure
           Documents) have been prepared in accordance with all applicable law
           and accounting standards (as that term is defined in section 256 of
           CA 1985) and with generally accepted accounting principles and
           practices of the United Kingdom ("UK GAAP") then in force. The
           Accounts give a true and fair view, in accordance with UK GAAP, of
           the state of the affairs of the Group at the Accounting Date and, in
           each case, have been prepared on a basis consistent with the audited
           financial statements for the year ended 31 December 2004.

6.2        The monthly management accounts for the period from 1 January 2006 to
           31 October 2006 have been, and the Management Accounts will be,
           prepared with due care and attention on a basis consistent with
           management accounts for the period from 1 January 2005 to 31 December
           2005 and such management accounts do, and the Management Accounts
           will (in each case, taking into account (i) that such accounts are
           not produced to an audited level and do not contain footnote
           disclosures which would otherwise be required, and (ii) the purpose
           for which they were prepared which is to give the management of the
           Group a high level view of the operations of the Group), present with
           reasonable accuracy the assets and liabilities and the profits and
           losses on a consolidated basis for the periods to which they relate,
           subject to (in the case of the Management Accounts only) any
           subsequent adjustments made in any quarterly or annual financial
           statements of the Group or its Shareholders prior to the Effective
           Date and which have been Disclosed.

6.3        As at 31 October 2006, the Group had no liabilities of a long term
           nature (being liabilities which will not mature or be satisfied,
           released or waived, within 12 months of the Effective Date) save as
           set out in Appendix I and save in respect of liabilities assumed
           pursuant to the Term Debt and the ROC Business Contracts.

7.         Records

           Each Group Member's records and information are exclusively owned by
           it or under its direct control.

CHANGES SINCE THE ACCOUNTING DATE

8.         General

           Since the Accounting Date:

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8.1        the business of each Group Member has been carried on in the ordinary
           and usual course;

8.2        there has been no material adverse change to the business of the
           Group as a whole;

8.3        no Group Member has acquired, or agreed to acquire, any single asset
           having a value in excess of (pound sterling)50,000 or assets having
           an aggregate value in excess of (pound sterling)50,000;

8.4        no Group Member has disposed of, or agreed to dispose of, any asset
           which has a value reflected in the Accounts in excess of (pound
           sterling)50,000 or which has been acquired since the Accounting Date
           other than as contemplated by this Agreement;

8.5        no Group Member has borrowed or raised any money or taken up any
           financial facilities or repaid any borrowing or indebtedness in
           advance of its stated maturity other than trade credit and working
           capital facility in the ordinary course of its business;

8.6        no Group Member has sold or agreed to sell a debt and no debt has
           been released, deferred, subordinated or written off by any Group
           Member;

8.7        no dividend has been declared, paid or made by any Group Member;

8.8        no Group Member has changed its accounting reference date;

8.9        no share or loan capital has been allotted, issued, repaid or
           redeemed or agreed to be allotted, issued, repaid or redeemed by any
           Group Member;

8.10       no resolution of the shareholders of any Group Member has been
           passed; and

8.11       no Group Member has created, or granted, or agreed to create or
           grant, a security interest or other encumbrance in respect of fixed
           assets included in the Accounts (excluding the Property), or acquired
           or agreed to be acquired since the Accounts, otherwise than as
           Disclosed, in the normal course of its trading business or pursuant
           to any retention or reservation of title or lien arising in the
           ordinary course of business.

ASSETS

9.         Unencumbered title; possession

9.1        Each asset included in the Accounts or used by any Group Member as at
           the date of this Agreement is legally and beneficially owned by the
           relevant Group Member free from any Encumbrance except those
           encumbrances which would not have a material adverse effect on the
           transactions contemplated under this Agreement and which have arisen
           in the normal course of that Group Member's business.

                                       53
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9.2        None of the assets, undertaking or goodwill of a Group Member is
           subject to, and no Group Member has agreed to grant, an option,
           charge, lien or encumbrance, or right of pre-emption otherwise than
           as Disclosed, in the normal course of its trading business or
           pursuant to any retention or reservation of title or lien arising in
           the ordinary course of business.

10.        Stock

10.1       The Stock held by each Group Member and not written off in the
           Management Accounts is at a level which is in accordance with the
           Group's normal course of business consistent with past practice.

10.2       The Stock of each Group Member is in satisfactory condition and is
           capable of being used in the normal course of the Group's business.

11.        Plant

           The plant and machinery which is material to the business of each
           Group Member is in a satisfactory state of repair and condition and
           is in satisfactory working order.

12.        Information Technology

           All information and communications technologies used by any Group
           Member including computer hardware, software (proprietary and third
           party) operating systems, data, Internet and web sites, firmware,
           networking, peripherals and all associated documentation or other
           infrastructure equipment or systems:

12.1       have not been affected by any defects or other faults that have, in
           either case, caused any material or repeated interruption to the
           Group's business at any time during the 12 months prior to the date
           of this Agreement; and

12.2       are under the exclusive ownership or direction of the Group and are
           not outsourced to or otherwise administered or controlled by, or
           shared with, any third party.

13.        Intellectual Property Rights

13.1       No Group Member has any interest in Intellectual Property Rights save
           for the Intellectual Property Rights detailed in the Disclosure
           Letter.

13.2       So far as each Share Seller is aware, all Intellectual Property
           Rights used in any Group Member's business (save for Intellectual
           Property Rights licensed to any Group Member under any Contract) are
           legally and beneficially owned by the relevant Group Member.

                                       54
<PAGE>

13.3       There are and have been in the last six years no proceedings, actions
           or claims brought against any Group Member, and, so far as each Share
           Seller is aware, none are pending or threatened, impugning the title,
           validity or enforceability of any of the Intellectual Property Rights
           owned by any Group Member and the Share Sellers have not received
           notice from a third party alleging any breach by a Group Member of
           any third party's Intellectual Property Rights.

13.4       The Disclosure Letter contains a full list of domain names and other
           addresses in connection with the Internet or Worldwide Web which are
           held or used by each Group Member.

PROPERTY

14.        Details of the Property

14.1       The particulars of the Property shown in Schedule 6 are true,
           complete and accurate in all material respects and, together with any
           land on which any electricity generating plant operated or developed
           by a Seller is situated, include all the freehold, heritable or
           leasehold properties owned or used by any Group Member.

14.2       The title deeds to the Property are in the relevant Group Member's
           possession.

14.3       No Group Member owns, uses, has a right to use, is in occupation of
           or is entitled to any estate or interest (whether legal or equitable)
           in any freehold, heritable or leasehold property other than the
           Property and any land on which any electricity generating plant
           operated or developed by a Seller is situated. No Group Member is
           party to any uncompleted agreement to acquire or dispose of any
           freehold, heritable or leasehold property.

14.4       Except in relation to the Property and any land on which any
           electricity generating plant operated or developed by a Seller is
           situated, no Group Member has any liability (whether actual or
           contingent) in relation to any freehold, heritable or leasehold
           property.

14.5       The Property is occupied exclusively by the Group Members and there
           is no lease, sub-lease, tenancy, service occupancy, licence or
           agreement affecting the Property (other than those Disclosed) nor is
           there any person in occupation or possession or who has or claims any
           right of easement in respect of the Property by adverse possession or
           by prescription.

14.6       All documents relating to title have been disclosed to the Buyer's
           Solicitors.

                                       55
<PAGE>

ENVIRONMENTAL/HEALTH AND SAFETY (EHS) MATTERS

15.        EHS Permits

15.1       Copies of all EHS Permits obtained by each Group Member are enclosed
           in the Disclosure Documents.

15.2       Each Group Member has obtained and is in possession of all material
           EHS Permits and each such EHS Permit is in full force and effect and
           the relevant Group Member has complied with all material conditions
           of each such EHS Permit.

15.3       No Share Seller has received notice that the operator of any landfill
           site on which a Group Member carries on its business has not obtained
           or has not in its possession or has not complied with all material
           conditions of all permits and licences required under EHS Law in
           respect of that landfill site and is not aware of any such permits
           and licences not being in full force and effect.

15.4       No Share Seller has received notice of any circumstances which they
           ought reasonably to know will cause the revocation or suspension or
           prejudice the renewal of any EHS Permit or any permit or licence held
           by the operator of any landfill site on which the Group carried on
           its business.

16.        Compliance with EHS Law

16.1       So far as each Share Seller is aware, no works or costs are currently
           necessary to obtain or secure compliance with or maintain any EHS
           Permit, or otherwise to comply in all material respects with EHS Law.

16.2       So far as each Share Seller is aware, each Group Member complies in
           all material respects with EHS Law.

16.3       No Group Member has received any written communication from any
           relevant authority from which it is alleged to be in breach of EHS
           Law. No Group Member has received any written communication from an
           operator of any landfill site on which a Group Member carries on its
           business that such operator has received written communication from
           any relevant authority from which the operator is alleged to be in
           breach of EHS Law.

16.4       No Group Member has operated a land fill site nor are any currently
           doing so.

17.        Liability

17.1       No proceedings are in existence or, so far as each Share Seller is
           aware, are threatened or pending against any Group Member nor so far
           as the Share Sellers are aware, has any Group Member received any
           written communication from an operator of any landfill site on which
           a Group Member carries on its business that such operator has
           received written communication concerning proceedings pending or
           threatened in relation to EHS Matters.

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<PAGE>

17.2       No Group Member has received any written notice of any complaint or
           claim from any person in respect of EHS Matters.

18.        Planning

18.1       The present use of each of the Projects and the landfill sites where
           there is a Project is the permitted use for the purposes of the
           Planning Acts (meaning all applicable legislation relevant to town
           and country planning) and no such use is stated to be personal.

18.2       All necessary planning, building warrant and other necessary
           permissions and all necessary local authority building warrant
           completion certificates are held by, or are under the control of,
           each Group Member in regard to each Project and the works executed at
           each Project and, so far as the Share Sellers are aware, the Group
           has not received notice that any necessary planning, building warrant
           and other necessary permissions and any necessary local authority
           building warrant completion certificates are not held by the
           operators of the landfill sites where a Project is located.

18.3       So far as the Share Sellers are aware, the Group Members are
           complying with and have not received notice of non-compliance of:

           18.3.1     the terms of all planning permissions relating to each of
                      the Projects and to each of the landfill sites where there
                      is a Project;

           18.3.2     the provisions of any legal agreement relating to each of
                      the Projects and to each of the landfill sites where there
                      is a Project which is entered into pursuant to:

                      18.3.2.1   the Planning Acts or any predecessor statute;

                      18.3.2.2   any applicable bye laws or other applicable
                                 regulations relevant to planning; and

                      18.3.2.3   no enforcing authority has commenced or given
                                 notice to the Group of any proceedings for a
                                 breach of any of the above.

18.4       So far as each Share Seller is aware, no member of the Group has
           received any notice under the Planning Acts in relation to the
           Projects or the landfill sites where there is a Project.

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<PAGE>

18.5       So far as each Share Seller is aware, no member of the Group has
           received notice that a current planning permission granted in respect
           of any of the Projects or the landfill sites where there is a Project
           is to be suspended.

18.6       So far as each Share Seller is aware, no member of the Group has
           received any of the following in relation to a Project or a the
           landfill sites where there is a Project:

           18.6.1     a confirmed compulsory purchase order (and there are no
                      proposals to acquire compulsorily any of the landfill
                      sites where there is a Project);

           18.6.2     a purchase notice; or

           18.6.3     a blight notice.

18.7       Building regulation consents have been obtained and complied with in
           all material respects at all times with respect to all development of
           and alterations and improvements to each of the Projects and to each
           of the landfill sites where there is a Project.

           EMPLOYEES

19.        Remuneration and employees

19.1       The Disclosure Documents contain anonymised details of the job
           titles, dates of commencement of employment (or appointment to
           office), dates of birth, material terms and conditions of employment,
           salary and other benefits of each employee of each Group Member.

19.2       So far as each Share Seller is aware, there are no amounts owing to
           any present or former officers, workers or employees of any Group
           Member, other than remuneration accrued (but not yet due for payment)
           in respect of the calendar month in which this Agreement is executed
           or for reimbursement of business expenses incurred during such month
           and no past or present employee of any Group Member has any right to
           any payment or other benefit by virtue of the sale of the Shares
           (save for the persons entitled to the Bonus Amount who are listed in
           the Disclosure Letter) and no bonuses or long term incentive plan
           payments are payable or accrued other than the Bonus Amount, which
           the Share Sellers warrant represents the total sum due pursuant to
           the CLPE Holdings Management Incentive Plan.

19.3       There are no employees who have been absent due to sickness or
           maternity leave for more than 3 continuous months in the 12 month
           period ending on the date of this Agreement.

19.4       No Group Member has formally recognised a trade union and no Group
           Member is party to any agreement with any trade union in respect of
           its employees.

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<PAGE>

19.5       No Group Member is involved in any industrial action in respect of
           its employees.

19.6       No Group Member operates any short time working scheme or arrangement
           or any redundancy or redeployment scheme or arrangement, whether
           formal or informal, contractual or non-contractual, which provides
           for payments greater than those required by statute or for notice
           periods greater than those set out in contracts of employment or
           engagement.

19.7       So far as each Share Seller is aware, there is no person previously
           employed or engaged by any Group Member who now has or may have
           statutory or contractual right to return to work or to be reinstated
           or to be reengaged by the relevant Group Member and there is no
           outstanding right of any such person to compensation against any
           Group Member.

19.8       The contracts of employment to which any Group Member is a party are
           terminable at any time on three months' notice or less without
           compensation (other than compensation in accordance with the
           Employment Rights Act 1996).

19.9       No Group Member has given or received notice to terminate the
           employment or engagement of any person employed or engaged by it and
           no person has ceased to be employed or engaged by any Group Member,
           in either case since the Accounting Date or where such notice has not
           yet expired.

19.10      No Group Member has employed or made any offers to employ any person
           since the Accounting Date where such employment will take effect
           after the date of this Agreement.

19.11      Each Group Member has complied in all material respects with all
           material laws relating to its employees and workers.

20.        Pensions

20.1       The Pension Scheme is the only arrangement to which any Group Member
           has any liability for the purpose of providing benefits on retirement
           or death (or similar entitlement).

20.2       The Share Sellers have supplied to the Buyer all material documents
           containing details of the Pension Scheme and of each Group Member's
           obligations and liabilities under it.

20.3       The Pension Scheme is an approved scheme (within the meaning of
           Chapter I or IV of Part XIV of ICTA).

                                       59
<PAGE>

CONTRACTS

21.        Insurance

21.1       Particulars of each Group Member's current insurances and of all
           claims made against those insurances in the last 2 years are enclosed
           in the Disclosure Documents.

21.2       All premiums due in relation to each Group Member's insurances have
           been paid.

21.3       No claim under any Group Member's current insurances are outstanding
           and, so far as each Share Seller is aware, there are no circumstances
           which might result in any insurance claim.

21.4       All the assets and undertakings of each Group Member of an insurable
           nature are, and have at all material times been, insured in a manner
           considered prudent by the Share Sellers.

21.5       All insurances of each Group Member are in full force. No Group
           Member has been refused insurance or had any insurance policies
           terminated nor has any Group Member received notice from its
           insurance broker of any intention to refuse or terminate or make void
           any insurance of a Group Member.

22.        Financing and working capital

22.1       No indebtedness of any Group Member is due and payable and no
           security over any of the assets of any Group Member is now
           enforceable. No Group Member has received notice (whether formal or
           informal) from a lender of money, requiring repayment or intimating
           the enforcement of a security; and so far as each Share Seller is
           aware there is nothing which will give rise to such a notice.

22.2       No person (other than a Group Member) has given any guarantee of or
           security for any overdraft, loan, other financial facility granted to
           any Group Member or other liability of any Group Member.

22.3       No Group Member has applied for or received any grant, subsidy or
           financial assistance from any government department or other body. No
           Group Member has done or omitted to do anything which could and the
           sale of the Company will not result in all or part of a grant,
           subsidy or other similar payments made or due to be made to it
           becoming repayable, or being forfeited or withheld.

22.4       The total amount borrowed by each Group Member (as determined in
           accordance with the relevant instrument) does not exceed any
           limitation on its borrowing powers contained in its articles of
           association or other documents.

22.5       No Group Member has outstanding or has agreed to create or issue any
           loan capital; has engaged in financing of a type which would not
           require to be shown or reflected in the Accounts; or has borrowed
           money which it has not repaid, apart from borrowings not exceeding
           the amounts shown in the Accounts.

                                       60
<PAGE>

22.6       No Group Member has lent money which has not been repaid to it or is
           the creditor in respect of a debt (whether or not due for payment)
           which has arisen otherwise than in the normal course of its business.

22.7       There has been no exercise, so far as the Share Sellers are aware,
           purported exercise or claim for a charge, lien, encumbrance or equity
           over assets of a Group Member.

22.8       No Group Member has been the tenant of, or a guarantor in respect of,
           leasehold property other than the Property.

22.9       Other than as Disclosed, no Group Member has a material contractual
           exposure in relation to interest or exchange rate fluctuations.

22.10      Since the date of each bank statement referred to in Schedule 5,
           there have been no payments out of the account to which the statement
           relates, except for payments in the normal course of trading
           business.

22.11      The Disclosure Documents set out accurate and complete details
           (together with accurate copies of all relevant documentation) of the
           Bank Facilities.

22.12      Save for the declared but unpaid dividends referred to in the
           Disclosure Letter, there is no amount due and payable by a Group
           Member which has been due for more than 3 months.

23.        Material contracts

23.1       No Group Member is a party to, liable under or subject to, any
           Contract which remains outstanding or unperformed (in whole or in
           part) and which:

           23.1.1     involves hire purchase, conditional sale, credit sale,
                      leasing or hiring arrangements in excess of (pound
                      sterling)50,000;

           23.1.2     involves any capital expenditure by the relevant Group
                      Member in excess of (pound sterling)50,000;

           23.1.3     is a guarantee, indemnity, surety or form of comfort in
                      respect of the obligations of a third party under which
                      any liability or contingent liability is outstanding; or

           23.1.4     is not on arm's length terms or is otherwise than in the
                      ordinary course of the Group's business.

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<PAGE>

23.2       No Group Member has received written notice that it is in breach of
           any material Contract to which it is a party which has not been
           remedied to the satisfaction of the other contracting parties and, so
           far as the Share Sellers are aware, no other party to any such
           material Contract is in material breach of it.

23.3       All material Contracts to which a Group Member is a party and which
           remain outstanding or unperformed (in whole or in part) are disclosed
           in the Disclosure Documents.

23.4       All conditions precedent to the effectiveness of any material
           contract to which a Group Member is a party and, in the case of a gas
           agreement, once the relevant Project thereunder has been commissioned
           have been satisfied or waived in accordance with its terms.

23.5       The Share Sellers have received no notice that any conditions
           precedent to the occurrence of the following material dates under the
           Contracts specified below have not been satisfied or waived by the
           relevant parties:

           23.5.1     the "Connection Date" (or any comparable term used) under
                      and as defined in each Project Company's arrangements for
                      the connection of its generating assets (including ROC
                      Business Assets used by it) to the relevant distribution
                      network;

           23.5.2     the "Commencement Date" (or any comparable term used)
                      under and as defined in any Project Company's arrangements
                      with Smartest Energy Limited for the sale of any
                      electricity generated by that Project Company's generating
                      assets (including any ROC Business Assets used by it); and

           23.5.3     the "Effective Date" under and as defined in any Project
                      Company's other arrangements for the sale of any
                      electricity generated by that Project Company's generating
                      assets (including any ROC Business Assets used by it).

23.6       So far as the Share Sellers are aware, no Group Member has any
           material outstanding obligations or liabilities under any material
           Contracts to which it has been a party which have been terminated.

23.7       None of the Dormant Companies have or will at Completion have any
           outstanding obligations or liabilities under any Contract whether
           written or oral, to which any Group Member is or has been a party.

23.8       Summerston Energy Limited has not paid any amounts under clause 4 of
           the undated landfill gas agreement it has entered into with
           Caledonian Properties Limited and Glasgow City Council for which it
           has to be reimbursed by either of the other parties, in respect of
           which no such reimbursement has been received.

                                       62
<PAGE>

23.9       So far as each Share Seller is aware, no material Contract to which
           any Group Member is a party is terminable upon the change of control
           of a Group Member or of the holding company of such Group Member.

23.10      The Renewables NFFO5 Replacement Power Purchase Agreement (Non-BSC
           Party Contract) entered into by the landfill operator at the Todhills
           Landfill site on 8 March 2001 remains in full force and effect.

23.11      The Renewables NFFO5 Replacement Power Purchase Agreement (Non-BSC
           Party contract) in respect of Chelson Meadow Energy Limited has been
           Disclosed and is in full force and effect.

24.        Outstanding offers

           No offer, tender or the like with a value in excess of (pound
           sterling)15,000 is outstanding which may be converted into an
           obligation of a Group Member by acceptance by, or other act of,
           another person.

25.        Guarantees and indemnities

           Other than as Disclosed, there is no subsisting guarantee or
           agreement for indemnity or for suretyship given by a Group Member or
           for its accommodation.

26.        Agreements relating to the management and business

26.1       There are no agreements or arrangements between a Group Member and a
           person (including the Share Sellers) who is a shareholder, or the
           beneficial owner of an interest, in it, or in a company in which a
           Group Member is interested, or an Insider of such a person, relating
           to:

           26.1.1     the management of a Group Member's business;

           26.1.2     the appointment or removal of directors of a Group Member;

           26.1.3     the ownership, transfer of ownership or letting of assets
                      of a Group Member;

           26.1.4     the provision, supply or purchase of finance, goods,
                      services or other facilities to, by or from a Group
                      Member; or

           26.1.5     in any other respect relating to its affairs.

27.        Agency agreements and agreements restricting business

27.1       No Group Member is a party to an agency, distributorship, marketing,
           purchasing, manufacturing or licensing agreement or arrangement or a
           restrictive agreement or arrangement which restricts its freedom to
           carry on its business as it thinks fit.

                                       63
<PAGE>

27.2       No Group Member is bound by an undertaking or assurance given to a
           court.

28.        Other business matters

28.1       No Group Member uses, for any purpose, any name other than its own
           corporate name or any other name specified in the Disclosure Letter.

28.2       All material licences and consents of each Group Member have been
           Disclosed and in the Share Sellers' reasonable opinion no other
           licences or consents which are material to the business of the Group
           are necessary in order for such business to be carried on after
           Completion in the same manner as it was carried on immediately prior
           to Completion.

28.3       No Group Member is, or has agreed to become, a participant in or
           member of a joint venture, consortium, partnership or other
           unincorporated association.

28.4       No Group Member is, or has agreed to become, a party to an agreement
           or arrangement for sharing commissions or other income.

COMPLIANCE, DISPUTES

29.        General legal compliance

29.1       So far as each Share Seller is aware:

           29.1.1     each Group Member and their officers and employees have
                      conducted its business in all material respects in
                      accordance with all applicable legal and administrative
                      requirements in the United Kingdom and any requirements of
                      any other rules, codes and other documents applicable to
                      electricity generators in the United Kingdom;

           29.1.2     each Group Member has carried on business and conducted
                      its affairs in accordance with its memorandum and articles
                      of association; and

           29.1.3     each Group Member has the power and is qualified to carry
                      on business in the jurisdictions in which it carries on
                      business.

29.2       So far as each Share Seller is aware, there is not pending, or in
           existence, any investigation or enquiry by, or on behalf of, any
           governmental or other regulatory body in respect of the affairs of
           any Group Member.

29.3       Each Project Company has obtained accreditation to receive LECs and
           Renewables Obligation Certificates ("CCL Accreditation" and "RO
           Accreditation", respectively) in respect of any electricity generated
           by the installed capacity of its Projects as at the date of this
           Agreement. Each such accreditation is in full force and effect and
           the relevant Project Company has complied with all material
           conditions thereof.

                                       64
<PAGE>

29.4       The Share Sellers are not aware of, and have not been informed by the
           Department of Trade and Industry, OFGEM or any other competent
           authority of, any circumstances which might cause the revocation or
           suspension of any such CCL or RO Accreditation.

29.5       The Share Sellers are not aware of, and have not been informed by the
           Department of Trade and Industry, OFGEM or any other competent
           authority of, any matter or fact which prevents or is reasonably
           likely to prevent any of the ROC Projects being treated as an
           "eligible renewable source" (as defined in the Renewables Obligation
           Order 2006 and the Renewables Obligation (Scotland) Order 2006) and a
           "renewable source of electricity" (as defined in the Climate Change
           Levy (General) Regulations 2001 as amended from time to time) or
           which would (so far as the Share Sellers are aware) prevent the issue
           of Renewables Obligation Certificates or LECs being issued by any
           competent authority in respect of any electricity generated by any of
           the ROC Projects.

29.6       None of the Group Members nor, so far as the Sellers are aware, any
           of the land on which any Group Member carries on its business or on
           which a ROC Project is situated has ever been the subject of any
           "qualifying arrangement" as defined in the Renewables Obligation
           Order 2006 and the Renewables Obligation (Scotland) Order 2006 which
           has not been disclosed to the Buyer. Where such a "qualifying
           arrangement" has been disclosed but has been terminated, such
           termination was not due to the operator of the generating station to
           which it applied having committed an unremedied breach of it.

30.        Litigation

30.1       No Group Member is a party to (whether as claimant, defendant or
           otherwise) any civil, criminal, tribunal, arbitration, administrative
           or other proceedings and, so far as each Share Seller is aware, no
           such proceedings are pending or threatened.

30.2       There is no outstanding or unsatisfied judgment, decree, order, award
           or decision of a court, tribunal, arbitrator or governmental agency
           against any Group Member and no Group Member is party to any current
           undertaking or assurance given to a court, tribunal or any other
           person in connection with the determination or settlement of any
           claim or proceedings which remains outstanding.

30.3       There is no dispute with a Taxation Authority (as defined in Schedule
           4 in relation to the affairs of a Group Member); and, so far as each
           Share Seller is aware, no such dispute is pending or threatened.

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31.        Insolvency

31.1       No order has been made, petition presented or resolution passed for
           the winding up of any Group Member. No administrative receiver,
           receiver or receiver and manager has been appointed of the whole or
           any part of the property, assets or undertaking of any Group Member.

31.2       No distress, execution or similar process has been levied and remains
           undischarged in respect of any Group Member.

31.3       No Group Member has stopped or suspended the payment of its debts or
           received a written demand pursuant to section 123(1)(a) Insolvency
           Act 1986 and no Group Member is insolvent or unable to pay its debts
           within the meaning of section 123 Insolvency Act 1986.

31.4       No administrator has been appointed in respect of any Group Member
           and no steps or actions have been taken in connection with the
           appointment of an administrator in respect of any Group Member.

31.5       No voluntary arrangement has been proposed or approved under Part 1
           Insolvency Act 1986 and no compromise or arrangement has been
           proposed, agreed to or sanctioned under section 425 CA 1985 in
           respect of any Group Member.

32.        Effects of the Agreement

32.1       Neither Share Seller has received any written notice from any third
           party contracting with the Group of its intention to terminate any
           arrangements or Contracts with the Group as a result of the
           acquisition by the Buyer of the Shares.

32.2       No Group Member has received written notice that a third party to a
           material Contract intends to terminate such Contract as a result of
           the sale of the Group to the Buyer.

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                             Part 2 - ROC Warranties

1.         Schedules

           The information concerning the warranting ROC Seller contained in
           Schedules 11 and 12 is true and accurate and complete in all material
           respects.

SELLER

2.         Capacity

           Subject to the approval of the Shareholders of each relevant ROC
           Seller, the warranting ROC Seller has full power to enter into and
           perform this Agreement and this Agreement constitutes obligations
           binding on such ROC Seller in accordance with its terms.

3.         Breaches

           Neither the execution and delivery of this Agreement by the
           warranting ROC Seller nor the transactions contemplated by this
           Agreement are prohibited by, or violate any provision of, and will
           not result in a breach of:

3.1        any applicable law, rule, regulation, judgment, decree, order or
           other requirements of any government, quasi-government, statutory,
           administrative or regulatory body, court or agency; or

3.2        the constitutional documents of that warranting ROC Seller.

4.         Contracts

           The only contracts which the ROC Sellers have entered into which are
           relevant to the ROC Business Assets being acquired are the DSA's and
           the DA's.

ASSETS

5.         Unencumbered title; possession

5.1        The following  warranty is made by the  warranting  ROC Seller with
           respect to the assets listed under its name in Schedule 11 and
           Schedule 12:

           5.1.1    the ROC Plant and Equipment listed under ROC 1's name is
                    legally and beneficially owned with good and marketable
                    title, by ROC 1 free from any Encumbrance;

           5.1.2    the ROC Plant and Equipment listed under ROC 2's name is
                    legally and beneficially owned with good and marketable
                    title, by ROC 2 free from any Encumbrance;

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<PAGE>

           5.1.3    the ROC Plant and Equipment listed under ROC 3's name is
                    legally and beneficially owned with good and marketable
                    title, by ROC 3 free from any Encumbrance;

           5.1.4    the ROC Plant and Equipment listed under ROC 4's name is
                    legally and beneficially owned with good and marketable
                    title, by ROC 4 free from any Encumbrance.

5.2        Each of the warranting  ROC Sellers  warrants that the assets listed
           under its name in Schedule 11 and Schedule 12 are all the ROC
           Business Assets owned or used by it.

6.         Plant and Equipment, etc

           The ROC Plant and Equipment owned by each of the warranting ROC
           Sellers as set out in Schedule 12 is:

6.1        in a satisfactory state of repair and condition and is in
           satisfactory working order; and

6.2        in that warranting ROC Sellers' possession and control and are their
           absolute property.

7.         The Stock as it relates to the ROC Business Assets is at a level and
           is adequate for the carrying on in the normal course of business
           consistent with past practice.

8.         All consents and agreements of third parties which are required for
           the transfer of the ROC Business Assets (including in relation to any
           Contracts to which any Group Member is a party) to the Buyer have
           been obtained in writing and are attached to the Disclosure
           Documents.

CONTRACTS

9.         Insurances

           All the ROC Plant and Equipment of an insurable nature is, and has at
           all material times been, insured in a manner considered prudent by
           that ROC Seller.

10.        Material contracts

10.1       All of the ROC Business  Contracts of the warranting ROC Seller have
           been disclosed to the Buyer in the Disclosure Documents.

10.2       Other than the ROC Business Contracts of the warranting ROC Seller,
           there are no other Contracts which such ROC Seller has entered into
           relating to the ROC Business Assets of such ROC Seller and true and

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<PAGE>

           complete copies of the ROC Business Contracts have been Disclosed and
           material particulars of any amendments to them have been notified to
           the Buyer.

10.3       The warranting ROC Seller has not received written notice alleging or
           claiming a breach by such ROC Seller of any ROC Business Contract of
           such ROC Seller and so far as such ROC Seller is aware, there are no
           circumstances giving rise to a breach of a ROC Business Contract on
           the part of such ROC Seller.

11.        Compliance with statutes and licences

11.1       Short particulars of each licence and consent required to carry on
           the ROC Business are set out in the Disclosure Letter; all such
           licences and consents are valid and subsisting; and the ROC Sellers
           are not in breach of any of them and no notice has been received by a
           ROC Seller that would prejudice their continuation or renewal in the
           places and in the manner in which the ROC Business is now carried on.

11.2       So far as each  warranting  ROC  Seller is  aware,  it has  conducted
           its ROC  Business  in  accordance  with all applicable laws and
           regulations.

11.3       So far as each warranting ROC Seller is aware, there have been no
           investigations or enquiries, by or on behalf of, a governmental or
           other body in respect of any aspect of the ROC Business and none are
           taking place or pending.

12.        Environmental matters

           The ROC Business and the warranting ROC Seller has, so far as the
           warranting ROC Seller is aware, complied in all material respects
           with EHS Law.

13.        Litigation

13.1       The warranting ROC Seller is not, nor so far as such warranting ROC
           Seller is aware, any person for whose acts such ROC Seller may be
           contractually or vicariously liable is, party to (whether as
           claimant, defendant or otherwise) any civil, criminal, tribunal,
           arbitration, administrative or other proceedings in respect of the
           ROC Business Assets of such ROC Seller and, so far as such ROC Seller
           is aware, no such proceedings are pending or threatened.

13.2       There is no outstanding or unsatisfied judgment, decree, order, award
           or decision of a court, tribunal, arbitrator or governmental agency
           against the warranting ROC Seller in relation to the ROC Business
           Assets of such ROC Seller and such ROC Seller is not party to any
           current undertaking or assurance given to a court, tribunal or any
           other person in connection with the determination or settlement of
           any claim or proceedings in relation to the ROC Business Assets of
           such ROC Seller which remains outstanding.

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<PAGE>

14.        Insolvency

14.1       No order has been made, petition presented or resolution passed for
           the winding up of the warranting ROC Seller. No administrative
           receiver, receiver or receiver and manager has been appointed of the
           whole or any part of the property, assets or undertaking of such ROC
           Seller.

14.2       No distress, execution or similar process has been levied and remains
           undischarged in respect of any of the ROC Business Assets of the
           warranting ROC Seller.

14.3       The warranting ROC Seller has not stopped or suspended the payment of
           its debts or received a written demand pursuant to section 123(1)(a)
           Insolvency Act 1986 and such ROC Seller is not insolvent or unable to
           pay its debts within the meaning of section 123 Insolvency Act 1986.

14.4       No administrator has been appointed in respect of the warranting ROC
           Seller and no steps or actions have been taken in connection with the
           appointment of an administrator in respect of such ROC Seller.

14.5       No voluntary arrangement has been proposed or approved under Part 1
           Insolvency Act 1986 and no compromise or arrangement has been
           proposed, agreed to or sanctioned under section 425 CA 1985 in
           respect of the warranting ROC Seller.

15.        Employees

           There are no employees (other than persons employed by Group Members)
           in the ROC Business.

16.        Taxation

16.1       General

           16.1.1   Neither HMRC nor any other fiscal or regulatory authority
                    has operated or agreed to operate any special arrangement
                    (being an arrangement which is not based on relevant
                    legislation or any published practice) in relation to the
                    ROC Business Assets of the warranting ROC Seller.

           16.1.2   So far as the warranting ROC Seller is aware, at the date
                    of this Agreement no dispute exists between such ROC
                    Seller and HMRC or any regulatory authority in relation
                    to a ROC Business Asset of such ROC Seller.

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<PAGE>

16.2       Capital Allowances

           16.2.1   None of the Plant and Equipment of the warranting ROC
                    Seller has been treated as a long life asset in
                    accordance with Part 1 Chapter 10 of CAA, or been the
                    subject of a short life election in accordance with
                    section 83 Capital Allowances Act 2001 ("CAA").

           16.2.2   No person other than the warranting ROC Seller is
                    entitled to be treated as the owner of any item of fixed
                    Plant and Equipment of such ROC Seller in accordance with
                    the provisions of Part 2 Chapter 14 CAA, and such ROC
                    Seller's right to be so treated does not depend on any
                    election under section 183 CAA.

           16.2.3   None of the ROC Plant and Equipment of the warranting ROC
                    Seller is subject to an equipment lease with a third
                    party who is not a member of the Group other than the
                    powerbank lessors.

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<PAGE>

                                   SCHEDULE 4

                                    Taxation

PART 1 - INTERPRETATION

1.         Interpretation

           In this Schedule 4:

1.1        the following expressions have the following meanings unless
           inconsistent with the context:

           "the Auditors"                      the auditors for the time being
                                               of the Group

           "Corresponding Relief"       (a)       any Relief arising as a result
                                                  of a Liability to Taxation in
                                                  respect of which the Share
                                                  Sellers or any of them have
                                                  made a payment under paragraph
                                                  2 or in respect of the
                                                  Taxation Warranties; or

                                        (b)       any Relief arising as a result
                                                  of or in connection with the
                                                  Events which gave rise to a
                                                  Liability to Taxation in
                                                  respect of which the Share
                                                  Sellers or any of them have
                                                  made a payment under paragraph
                                                  2 or in respect of the
                                                  Taxation Warranties; or

                                        (c)       any Relief which:

                                            (i)        was claimed in respect of
                                                       the accounting period of
                                                       any Group Member current
                                                       at Completion or in
                                                       respect of any earlier
                                                       accounting period;

                                            (ii)       was disallowed by a
                                                       Taxation Authority so as
                                                       to give rise to a
                                                       Liability to Taxation in

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<PAGE>

                                                       respect of which the
                                                       Share Sellers or any of
                                                       them have made a payment
                                                       under paragraph 2 or in
                                                       respect of the Taxation
                                                       Warranties; and

                                            (iii)      remains available to be
                                                       used in an accounting
                                                       period of the Group
                                                       Member other than the one
                                                       in respect of which it
                                                       was originally claimed;
                                                       or

                                        (d)       any Relief arising as a result
                                                  of or in connection with any
                                                  deduction, withholding or
                                                  Taxation referred to in
                                                  paragraph 5.2

"Dispute"                               any dispute, appeal, negotiations or
                                        other proceedings in connection with a
                                        Tax Claim

"Event" any event, action or            transaction including the earning,
                                        receipt or accrual for any Taxation
                                        purpose (as opposed to any accounting
                                        purpose)of any income, profits or gains

"FA"                                    Finance Act

"Future Relief"                         any Relief (other than a Corresponding
                                        Relief) which arises wholly or mainly as
                                        a result of any Event which has occurred
                                        or occurs after Completion

"Group Relief"                          (a)       any relief surrendered or
                                                  claimed pursuant to Chapter IV
                                                  of Part X ICTA;

                                        (b)       any refund of Taxation
                                                  surrendered or claimed

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<PAGE>

                                                  pursuant to section 102 FA
                                                  1989; and

                                        (c)       any relief obtained as a
                                                  result of an election made
                                                  jointly with another company
                                                  under sections 171A or 179A
                                                  TCGA or under paragraph 66 of
                                                  Schedule 29 FA 2002

"HMRC"                                  H.M. Revenue and Customs and any
                                        predecessor body including the Board of
                                        the Inland Revenue and the Commissioners
                                        of Customs and Excise

"ITEPA"                                 Income Tax (Earnings and Pensions) Act
                                        2003

"Liability to Taxation"                 (a)       any liability of any Group
                                                  Member to make an actual
                                                  payment of Taxation; and

                                        (b)       the use by any Group Member of
                                                  any Future Relief to reduce or
                                                  eliminate any liability of any
                                                  Group Member to make an actual
                                                  payment of Taxation in respect
                                                  of which the Share Sellers or
                                                  any of them would otherwise
                                                  have been liable under
                                                  paragraph 2

"Over Provision"                        (a)       the amount by which any
                                                  provision for Taxation in the
                                                  Working Capital Statement
                                                  proves to be an over
                                                  provision; and

                                        (b)       the amount by which any
                                                  repayment of Taxation which is
                                                  treated (or which could have
                                                  been treated) as an asset in
                                                  the Working Capital Statement
                                                  proves to be understated

"Relief"                                (a)       any relief, allowance,
                                                  exemption, set-off, deduction

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<PAGE>

                                                  or credit available from,
                                                  against or in relation to
                                                  Taxation or in the computation
                                                  for any Taxation purpose of
                                                  income, profits or gains; and

                                        (b)       any right to a repayment of
                                                  Taxation

"Repayment"                             the obtaining by the Company of:

                                        (a)       a repayment of Taxation where
                                                  the Share Sellers or any of
                                                  them have made a payment under
                                                  paragraph 2 or in respect of
                                                  the Taxation Warranties in
                                                  respect of the same Taxation
                                                  which is the subject of the
                                                  repayment; or

                                        (b)       a repayment of Taxation by the
                                                  use of any Share Sellers'
                                                  Relief or any Corresponding
                                                  Relief

"Saving"                                the reduction or elimination of any
                                        liability of any Group Member, the Buyer
                                        or any member of the Buyer's Group to
                                        make an actual payment of Taxation in
                                        respect of which the Share Sellers would
                                        not have been liable under paragraph 2,
                                        by the use of any Share Seller's Relief
                                        or any Corresponding Relief

"Share Seller's Relief"                 any Relief other than a Future Relief

"Taxation" and "Tax"                    (a)       any tax and any impost
                                                  withholding or levy in the
                                                  nature of tax, of the United
                                                  Kingdom or elsewhere, whether
                                                  national or local, including
                                                  national insurance and social
                                                  security contributions and
                                                  value added tax (or similar)
                                                  but excluding all business
                                                  rates, water rates and local

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<PAGE>

                                                  authority or utility charges;
                                                  and

                                        (b)       any fine, penalty, surcharge,
                                                  or interest relating to any
                                                  tax, impost or levy mentioned
                                                  in paragraph (a) of this
                                                  definition

"Taxation Authority"                    any authority, whether of the United
                                        Kingdom or elsewhere, competent to
                                        impose, assess or collect Taxation,
                                        including but not limited to HMRC

"Taxation Statute"                      any statute (and all regulations and
                                        other documents having the force of law
                                        under such statute) published, enacted,
                                        issued or coming into force on or before
                                        the date of this Agreement relating to
                                        Taxation

"Taxation Warranties"                   the Warranties at Part 3 of this
                                        Schedule 4

"Tax Claim"                             any notice, demand, assessment, letter
                                        or other document issued, or action
                                        taken, by or on behalf of any Taxation
                                        Authority and the submission of any
                                        Taxation form, return or computation
                                        from which, in either case, it appears
                                        that any Group Member is or may be
                                        subject to a Liability to Taxation or
                                        other liability inrespect of which the
                                        Sellers are or may be liable under
                                        paragraph 2 or for breach of any of the
                                        Taxation Warranties

"TCGA"                                  Taxation of Chargeable Gains Act 1992

"TMA"                                   Taxes Management Act 1970

"VAT Group"                             any group of companies for the
                                        purposes of section 43 VATA of which any
                                        Group Member is or has been a member on
                                        or before Completion

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<PAGE>

"Withholding Tax Claim"                 the disclosure and negotiations
                                        to be made to and with HMRC and/or IRS
                                        in connection with obtaining of
                                        confirmation of (a) the amount of Tax
                                        which should have been withheld by the
                                        Company on the payment of interest to
                                        Ridgewood in respect of any loan made by
                                        Ridgewood to the Company prior to
                                        Completion and/or (b) the amount of any
                                        interest or penalties payable by the
                                        Company arising as a result of the
                                        failure by the Company to withhold tax
                                        on payment of such interest

1.2       references to Events include Events which are deemed to have occurred
          for any Taxation purpose and references to income, profits or gains
          earned, received or accrued for any Taxation purpose include income,
          profits or gains which are deemed to have been earned, received or
          accrued for any Taxation purpose (as opposed to any accounting
          purpose).

PART 2 - TAX COVENANT

2.         Covenant

          Subject to the provisions of this Part 2 of this Schedule 4 and
          paragraphs 2, 7, 8, 10, 13 and 14 of Schedule 7, each of the Share
          Sellers severally, but not jointly, covenants with the Buyer to pay to
          the Buyer an amount equal to that Share Seller's relevant proportion
          of the amount of:

2.1       any Liability to Taxation which has arisen or arises as a result of
          any Event which occurred on or before Completion;

2.2       a Group Member having a Liability to Taxation in consequence of the
          failure by any other company (other than another Group Member):

          2.2.1     which was, prior to Completion, a member of a group (as
                    defined for any relevant Tax purposes) of which the Company
                    was, prior to Completion, a member; or

          2.2.2     which was, prior to Completion, under the control of any
                    person or persons that directly or indirectly controlled the
                    Group Member prior to Completion

          to discharge Tax within a specified period or otherwise.

2.3       any inheritance tax which:

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<PAGE>

2.3.1     at Completion has given rise to a charge on any of the shares in or
          assets of a Group Member or gives the power to sell, mortgage or
          charge any of the shares or assets of the Company; or

2.3.2     after Completion gives rise to a charge on or gives the power to sell,
          mortgage or charge any of the shares in or assets of any Group Member,
          being a liability in respect of additional inheritance tax payable on
          the death of any person within seven years after a transfer of value
          which occurred before Completion (and, in determining for the purposes
          of this paragraph whether a charge on or power to sell, mortgage or
          charge any of the shares or assets of a Group Member exists at any
          time, the fact that the inheritance tax is not yet payable, or may be
          paid by instalments, shall be disregarded and such Tax shall be
          treated as becoming due and a charge or power to sell, mortgage or
          charge as arising on the date of the transfer of value or other date
          or event on or in respect of which it becomes payable or arises) and
          the provisions of section 213 IHTA shall be deemed not to apply;

2.4       any Liability to Taxation pursuant to the Withholding Tax Claim.

2.5       any reasonable costs, fees or expenses reasonably and properly
          incurred by any Group Member or the Buyer as a result of successfully
          bringing a claim against the Share Sellers in respect of any Liability
          to Taxation or other liability in respect of which the Share Sellers
          are liable under paragraph 2.1.

3.        Quantification

          For the purposes of paragraph 2 the amount of a Liability to Taxation
          mentioned will be determined as follows:

3.1       the amount of a Liability to Taxation falling within paragraph (a) of
          the definition of that expression in paragraph 1.1 will be the amount
          of the actual payment of Taxation which the relevant Group Member is
          liable to make;

3.2       the amount of a Liability to Taxation falling within paragraph (b) of
          the definition of that expression in paragraph 1.1 will be the amount
          of Taxation saved by the relevant Group Member as a result of the use
          of the Future Relief.

4.        Exclusions

4.1       The Share Sellers will not be liable under paragraph 2 or for breach
          of any of the Taxation Warranties in respect of a Liability to
          Taxation or other liability of any Group Member to the extent to
          which:

          4.1.1     such Liability to Taxation or other liability was
                    discharged:

                    4.1.1.1   on or before the Effective Date; or

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<PAGE>

                    4.1.1.2   between the Effective Date and Completion
                              (including Completion) at no cost to the Buyer or
                              any Group Member; or

          4.1.2     such Liability to Taxation or other liability arises as a
                    result of an any Event which occurred in the ordinary course
                    of business of the relevant Group Member after the Effective
                    Date and on or before Completion; or

          4.1.3     payment has already been made in respect of such Liability
                    to Taxation or other liability under any other provision of
                    this Agreement; or

          4.1.4     such Liability to Taxation or other liability would not have
                    arisen but for a change in legislation (including but not
                    limited to an increase in rates of Taxation) or in the
                    published practice of any Taxation Authority or but for any
                    decision of any court or tribunal in each case first
                    enacted, announced, published or delivered after the date of
                    this Agreement having retrospective effect; or

          4.1.5     such Liability to Taxation or other liability would not have
                    arisen but for a voluntary act, transaction or omission of
                    any Group Member, the Buyer, any member of the Buyer's Group
                    or any successor in title to any of them after Completion
                    otherwise than in the ordinary course of business of the
                    relevant Group Member as carried on at Completion and, for
                    this purpose, an act or omission is not voluntary if; or

                    4.1.5.1   it is carried out to avoid a breach of a
                              subsisting binding obligation or to comply with
                              statutory or regulatory requirements in force at
                              Completion; or

                    4.1.5.2   it is required to achieve compliance with GAAP in
                              force at Completion.

          4.1.6     provision or reserve was made for such Liability to Taxation
                    or other liability or otherwise taken into account in the
                    Working Capital Statement or such Liability to Taxation or
                    other liability was taken into account in any adjustment to
                    the consideration for the Shares under clause 6.8; or

          4.1.7     such Liability to Taxation or other liability is in respect
                    of the actual (as opposed to deemed) earning, receipt or
                    accrual for any Taxation purposes of any income, profit or
                    gain which is not recognised in the Accounts or the Working
                    Capital Statement; or

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<PAGE>

          4.1.8     such Liability to Taxation or other liability would not have
                    arisen but for any Group Member changing any of its
                    accounting policies, bases or practices (including the date
                    to which the Group Member prepares its accounts, the
                    treatment of timing differences, the bases on which the
                    Group Member values its assets and Taxation reporting
                    practice) after Completion whether as a result of a change
                    in generally accepted accounting principles or otherwise
                    except where such change is required to comply with GAAP in
                    force at the Effective Date or is a requirement of the
                    Auditors of a Group Member in order to obtain a clean audit
                    report in respect of the period of account in which
                    Completion takes place; or

          4.1.9     such Liability to Taxation or other liability would not have
                    arisen but for any Group Member ceasing to carry on any
                    trade or business after Completion or effecting a major
                    change in the nature or conduct of any trade or business
                    carried on by it at Completion; or

          4.1.10    such Liability to Taxation or other liability would not have
                    arisen or would have been reduced or eliminated but for the
                    failure or omission on the part of the Group Member or the
                    Buyer on or after Completion to make any claim, election,
                    surrender or disclaimer or to give any notice or consent or
                    to do any other thing, the making, giving or doing of which
                    was taken into account in the preparation of the Accounts
                    and/or the Working Capital Statement and of which the Buyer
                    was aware; or

          4.1.11    such Liability to Taxation or other liability would not have
                    arisen but for the withdrawal or amendment by or on behalf
                    of the Buyer or any Group Member after Completion of any
                    election, claim, surrender, disclaimer, notice or consent
                    made by the Group Member in relation to any Relief; or

          4.1.12    such Liability to Taxation or other liability would not have
                    arisen but for any failure or delay by the Buyer or any
                    Group Member in paying over to any Taxation Authority any
                    payment previously made by the Share Sellers or any of them
                    under paragraph 2 or under the Taxation Warranties or
                    otherwise under this Agreement; or

          4.1.13    payment has already been made by the Share Sellers or any of
                    them in respect of the Liability to Taxation pursuant to
                    section 767A ICTA; or

          4.1.14    any Relief which was not included in the Working Capital
                    Statement and which is attributable to any period ending on
                    or before the Working Capital Date is available and can be
                    utilised to eliminate or reduce the liability and the Buyer

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<PAGE>

                    will procure that the relevant Group Member takes such
                    action as the Share Sellers reasonably requests to give
                    effect to the provisions of this paragraph to the extent
                    permitted by law; or

          4.1.15    any Liability to Taxation in relation to the Withholding Tax
                    Claim to the extent not taken into account in calculating
                    the consideration for the Shares; or

          4.1.16    any Liability to Taxation which arises as a result of the
                    Buyer or any Member of the Buyer's Group (not being a Group
                    Member) being treated as a Member of the same VAT group as
                    any Group Member with effect from any time on or after
                    Completion; or

          4.1.17    any Liability to Taxation or other liability to pay or
                    account for income tax or employee or employers national
                    insurance contributions which may become payable as a result
                    of the payment of all or any part of the Bonus Amount and
                    any interest or penalties relating thereto or to any
                    obligation to report of all or any part of the Bonus Amount
                    to HMRC.

5.        Deductions from payments

5.1       Except as required by law or as permitted by this Agreement all
          payments by any of the Share Sellers under this Part 2 of this
          Schedule 4 will be made free and clear of all deductions and
          withholdings (whether in respect of Taxation or otherwise).

5.2       If any deduction or withholding is required by law to be made from any
          payment by a Share Seller under this Part 2 of this Schedule 4 or if
          the Buyer is subject to Taxation in respect of any payment by a Share
          Seller under this Part 2 of this Schedule 4, that Share Seller
          severally (but not jointly) covenants with the Buyer to pay to the
          Buyer such additional amount as is necessary to ensure that the net
          amount received and retained by the Buyer (after taking account of
          such deduction or withholding or Taxation) is equal to the amount
          which the Buyer would have received and retained had the payment in
          question not been subject to the deduction or withholding or Taxation.

5.3       In the event of the assignment of this Agreement each Share Sellers'
          liability to the assignee under this Schedule 4 will be no greater
          than it would have been to the Buyer here meaning only the Buyer named
          as such in this Agreement.

6.        Due date for payment

6.1       The due date for the making of a payment by a Share Seller under this
          Schedule 4 will be the later of:

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          6.1.1     the date falling five Business Days after the Buyer has
                    served a notice on that Share Seller demanding such payment;
                    and

          6.1.2     the date falling five clear Business Days before the last
                    date upon which the payment is required to be made to the
                    person entitled thereto (after taking into account any
                    postponement of the due date for payment of any Taxation
                    which is obtained) or would have been required to be made
                    but for the use of a Future Relief.

7.        Claims procedure

7.1       The Buyer will give notice of any Tax Claim to each of the Share
          Sellers as soon as reasonably practicable, and in any event within 15
          Business Days of the Buyer or any Group Member becoming aware that
          there may be a Tax Claim provided that the timely giving of such
          notice shall not be a condition precedent for the Share Sellers'
          liability under this Schedule.

7.2       Provided that the Share Sellers indemnify in their Relevant
          Proportions the relevant Group Member and the Buyer to the reasonable
          satisfaction of the Buyer against all reasonable costs and expenses
          which may be properly incurred thereby, the Buyer will procure that
          the relevant Group Member, at the Share Sellers' reasonable cost and
          expense in their Relevant Proportions, takes such action and gives
          such information and assistance in connection with its Taxation
          affairs as the Share Seller may reasonably request to dispute, appeal
          against, settle or compromise any Tax Claim, including, but not
          limited to applying to postpone (so far as legally possible) the
          payment of any Taxation.

7.3       The Buyer will not without the prior written consent of the Share
          Sellers, such consent not to be unreasonably withheld or delayed, take
          any action in relation to any Dispute including, but not limited to:

          7.3.1     the transmission of any communication (whether written or
                    otherwise) to any Taxation Authority;

          7.3.2     the settlement or compromise of the relevant Tax Claim; and

          7.3.3     the agreement of any matter which is likely to affect the
                    amount of the relevant Tax Claim or any future Liability to
                    Taxation.

7.4       Neither the Buyer nor the Company shall be obliged to take any action
          under clause 7.2, or enter into any correspondence with a Tax
          Authority which, acting reasonably, it considers will have an material
          prejudicial effect on the Tax affairs of the Company or on the
          Company's relationship with that Tax Authority, or which is
          misleading, inaccurate or incomplete in any way.

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7.5       For the avoidance of doubt the provisions of paragraphs 7.1 to 7.4
          shall not apply to a Withholding Tax Claim and the Share Sellers shall
          have exclusive conduct of the Withholding Tax Claim provided that the
          Share Sellers shall not settle with the relevant Taxation Authority
          the amount of Tax payable pursuant thereto without the prior consent
          of the Buyer, such consent not to be unreasonably withheld or delayed.

7.6       If the Tax Claim involves any fraudulent act or omission on the part
          of a Group Member prior to Completion or the Share Sellers at any
          time, then the Buyer shall be free to take or procure that the Company
          take such action as the Buyer in its reasonable discretion thinks fit.

7.7       If a dispute arises between the Buyer and the Share Sellers as to
          whether a Tax Claim should be settled in full, or contested in whole
          or in part, the dispute shall be referred to the determination of a
          senior tax counsel (acting as expert and not as arbitrator), of at
          least five years' standing (or his equivalent in any foreign
          jurisdiction), appointed by agreement between the Buyer and the Share
          Sellers. Counsel shall be asked to advise whether, in his opinion, the
          relevant appeal against the Tax Claim is more likely to succeed than
          not. If counsel is of the opinion that the appealing against the Tax
          Claim is more likely to succeed than not then the Buyer shall be
          obliged to dispute and/or appeal such Tax Claim in accordance with
          this paragraph 7. The cost of obtaining counsel's advice shall be
          borne as counsel shall determine having regard to the relative merits
          of the parties in respect of the disagreement and such determination
          as to costs will be conclusive and binding on the parties.

7.8       The Buyer may rely on any written request received by it from any of
          the Share Sellers or their professional advisers and if more than one
          conflicting request is received in relation to any Tax Claim or
          dispute then the Buyer shall be entitled to rely on the first to be
          received of such requests.

8.        Time limit

          No Share Sellers will be liable under paragraph 2 in respect of a
          Liability to Taxation or other liability of any Group Member, or in
          respect of a breach of the Tax Warranties, unless within 6 years after
          the end of the accounting period in which Completion takes place the
          Buyer has given written notice containing full details to that Share
          Seller of any Tax Claim whatsoever relating to such Liability to
          Taxation or other liability.

9.        Savings, Repayments and Over Provisions

9.1       If any Group Member obtains a Saving or a Repayment or it becomes
          apparent that an Over Provision has been made, the Saving, Repayment
          or Over Provision (as the case may be) will be apportioned between
          each of the Share Sellers in their Relevant Proportions (an amount so
          apportioned to a Share Seller is referred to in this clause 9.1 as an

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          Apportioned Amount) and each Apportioned Amount shall be applied as
          follows:

           9.1.1    first, the Apportioned Amount, the Saving, Repayment or Over
                    Provision will be set off against any payment then due under
                    paragraph 2 or in respect of the Taxation Warranties from
                    the Share Seller to whom such Apportioned Amount is
                    apportioned;

          9.1.2     secondly, to the extent that there is an excess, the Buyer
                    will, within two Business Days, pay to the Share Sellers to
                    whom such Apportioned Amount was apportioned the lesser of:

                    9.1.2.1   the amount of the excess; and

                    9.1.2.2   any amount previously paid by that Share Seller
                              under paragraph 2 or in respect of the Taxation
                              Warranties;

          9.1.3     thirdly, to the extent that the excess referred to in
                    paragraph 9.1.2 is not exhausted, the remainder of that
                    excess will be carried forward and set off against any
                    future liability of the Share Seller to whom such
                    Apportioned Amount was apportioned under paragraph 2 or in
                    respect of the Taxation Warranties.

9.2       The Buyer will procure that each Group Member uses reasonable
          endeavours to utilise any Relief available to it which would give rise
          to a Saving or Repayment as soon as it is reasonably practicable for
          the Group Member to do so provided that the Group Member shall not be
          compelled to organise its Tax affairs in a particular way in order to
          utilise such Relief.

9.3       The Buyer will inform each of the Share Sellers as soon as reasonably
          practicable after it or any Group Member becomes aware that a Group
          Member may obtain a Saving or a Repayment or that there may be an Over
          Provision.

9.4       If the parties cannot agree as to the existence and/or the quantum of
          any Saving, Repayment or Over Provision or the date on which any
          Saving or Repayment is obtained, such disagreement may be referred by
          either party to the Auditors for determination and, in making such
          determination, the Auditors will act as experts and not as arbitrators
          and their determination will (in the absence of manifest error) be
          conclusive and binding on the parties. The costs of the Auditors shall
          be borne as the Auditors shall determine having regard to the relative
          merits of the parties in respect of the disagreement and such
          determination as to costs will be conclusive and binding on the
          parties.

9.5       The provisions of paragraph 7 will apply, with the appropriate
          modifications to this paragraph 9 so that, subject to the requirements
          and limitations in paragraph 7, the Buyer will procure that each Group

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          Member at the Share Sellers' reasonable cost and expense in their
          Relevant Proportions, takes such action and gives such information as
          the Share Sellers may require to obtain a Repayment.

10.       Recovery from other persons

10.1      If a Group Member, the Buyer or any member of the Buyer's Group
          recovers from any other person (other than under the Warranty and
          Indemnity Insurance) any amount which is referable to a Liability to
          Taxation or other liability of the Group Member in respect of which
          the Share Sellers or any of them have made a payment under paragraph 2
          or in respect of the Taxation Warranties then the amount of such
          recovery shall be apportioned to the Share Sellers in their Relevant
          Proportions and the Buyer will repay to each of the Share Sellers the
          lesser of:

          10.1.1    that Share Seller apportioned amount or the amount so
                    recovered (less its Relevant Proportion of any costs and
                    expenses incurred by the relevant Group Member, Buyer or
                    member of the Buyer's Group in obtaining the recovery); and

          10.1.2    the amount paid by that Share Seller under paragraph 2 in
                    respect of the Taxation Warranties or in respect of the
                    Liability to Taxation or other liability in question less
                    any part of such amount previously repaid to that Share
                    Seller under any provision of this Agreement or otherwise.

10.2      If the Buyer becomes aware that any Group Member is entitled to
          recover any amount mentioned in paragraph 10.1, the Buyer will as soon
          as reasonably practicable give notice of that fact to each of the
          Share Sellers and provided that the Share Sellers reasonably indemnify
          in their Relevant Proportions the relevant Group Member and the Buyer
          against all costs and expenses which may be incurred thereby, the
          Buyer will procure that the relevant Group Member, at the Share
          Sellers' cost and expense, takes such action as the Share Sellers may
          reasonably request to effect such recovery. The provisions of
          paragraph 7.8 apply in relation to requests made under this paragraph
          10.2 as they apply to requests made under paragraph 7.

11.       Outstanding tax returns

11.1      The Share Sellers' duly authorised agents will, at their own cost and
          expense prepare the corporation tax returns and computations of each
          Group Member for all accounting periods ended on or before Completion
          (PROVIDED THAT the Share Sellers will not be obliged to reimburse any
          Group Member for costs and expenses incurred prior to Completion in
          respect of such corporation tax returns and computations) in a manner
          consistent with prior periods, to the extent that they have not been

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          prepared before Completion, and submit them to the Buyer for review at
          the Company's cost and expense.

11.2      The Buyer will procure that each Group Member causes the returns and
          computations mentioned in paragraph 11.1 to be authorised, signed and
          submitted to the relevant Taxation Authority without amendment or with
          such amendments as the Share Sellers acting reasonably shall agree
          after considering any comments made by the Buyer. The Buyer shall not
          be obliged to authorise or sign any return which is inaccurate,
          incomplete or misleading in any way.

11.3      The Share Sellers' duly authorised agents will, at their own cost and
          expense prepare all documentation and deal with all matters (including
          correspondence) relating to the corporation tax returns and
          computations of each Group Member and agreeing the same for all
          accounting periods ended on or before Completion provided that the
          Share Sellers will not without the prior written consent of the Buyer
          (not to be unreasonably withheld or delayed) transmit any
          communication (whether written or otherwise) to the relevant Taxation
          Authority or agree any matter with the relevant Taxation Authority.

11.4      The Buyer will procure that each Group Member affords the Share
          Sellers and their duly authorised agents such access to their books,
          accounts and records as is necessary and reasonable to enable the
          Share Sellers or their duly authorised agents to prepare the
          corporation tax returns and computations of each Group Member for all
          accounting periods ended on or before Completion and conduct matters
          relating to them in accordance with this paragraph 11.

11.5      The Buyer or its duly authorised agents will, at the cost and expense
          of each Group Member, prepare the corporation tax returns and
          computations of each Group Member for the accounting period current at
          Completion. The Share Sellers will provide all assistance reasonably
          required by the Buyer in order to carry out its obligations under this
          paragraph 11.5.

11.6      The Buyer will not submit the corporation tax returns and computations
          for the accounting period current at Completion or any correspondence
          relating to such corporation tax returns and computations to the
          relevant Taxation Authority before giving each of the Share Sellers a
          reasonable opportunity to make comments thereon.

11.7      The Buyer will procure that no Group Member will unreasonably refuse
          to adopt into such correspondence, corporation tax returns and
          computations as referred to in paragraph 11.6 any reasonable comments
          of the Share Sellers to the extent such comments relate to the Share
          Sellers' period of ownership. In the case of a dispute as to whether
          such comments should be incorporated, the opinion of the Company's
          Auditors shall be final and binding on the parties.

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11.8      The Buyer or its duly authorised agents will, at the cost and expense
          of each Group Member, prepare all documentation and deal with all
          matters (including correspondence) relating to the corporation tax
          returns and computations of each Group Member and agreeing the same
          for the accounting period current at Completion provided that the
          Buyer will not without the prior written consent of each of the Share
          Sellers (not to be unreasonably withheld or delayed) transmit any
          communication (whether written or otherwise) to the relevant Taxation
          Authority or agree any matter with the relevant Taxation Authority to
          the extent that the subject matter of the correspondence relates to
          Tax for a period or in respect of an Event on or prior to Completion.
          The Share Sellers will provide all assistance reasonably required by
          the Buyer in order to carry out its obligations under this paragraph
          11.8.

11.9      The Buyer will procure that each Group Member affords to each of the
          Share Sellers and their respective professional advisers such access
          to their books, accounts and records as is necessary and reasonable to
          enable the Share Sellers or their professional advisers to comment on
          the corporation tax returns and computations of each Group Member for
          the accounting period current at Completion.

12.       Buyer's Covenants

          Secondary tax liabilities

12.1      The Buyer undertakes to each of the Share Sellers to pay to that Share
          Seller by way of adjustment to the price paid for the Shares sold by
          that Seller under this Agreement an amount equal to any liability of
          that Share Seller, or any other person falling within Section 767A(2)
          or 767AA(4) ICTA, section 132 (3) FA 1988, section 190 (3) TCGA,
          paragraph 68 of Schedule 29 or paragraph 8(2) of Schedule 34 FA 2002
          by virtue of a relationship which that person has or has had with that
          Share Seller, to tax (and any related interest, penalties, costs and
          expenses) under Sections 767A, 767AA, 767B ICTA, section 132 FA 1988,
          section 190 TCGA or paragraph 68 of Schedule 29 or paragraph 8 of
          Schedule 34 FA 2002 as a result of the failure by any Group Member to
          pay any tax payable by it.

12.2      The undertaking contained in paragraph 12.1 will not apply to any
          Taxation in respect of which the Buyer could make a claim under this
          Schedule or to any Taxation which any of the Share Sellers or any
          other such person as is mentioned in paragraph 12.1 will have
          recovered from the Buyer under any statutory right of recovery (save
          in either such case in circumstances where the relevant Share Seller
          has paid an amount in respect of the Tax in question to the Buyer and
          the relevant liability of any Group Member nevertheless remains
          unpaid) and each of the Share Sellers will procure that no recovery

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          under such statutory right is sought to the extent that payment has
          been made to that Share Seller by the Buyer under paragraph 12.1 in
          respect of that Taxation.

12.3      Paragraphs 5 (deductions from payments), (due date for payment) and 7
          (claims procedure) will apply to the covenants in paragraphs 12.1 to
          12.2 as they apply to the covenants contained in paragraph 2,
          replacing references to the relevant Share Seller and the Buyer (and
          vice versa) and making any other necessary modifications.

13.       General

          All payments by any Share Seller under this Part 2 of this Schedule 4
          will be treated as repayments by that Share Seller of the
          Consideration paid for the Shares sold by that Share Seller pursuant
          to this Agreement, provided that this paragraph 13 will not operate in
          any way to limit the liability of the Share Sellers under this Part 2
          of this Schedule 4.

PART 3 - TAX WARRANTIES

14.       Returns, disputes and clearances

14.1      All notices, returns, computations, registrations and payments which
          should have been made by each Group Member for any Taxation purpose
          have been made within the requisite periods and are, in all material
          respects, correct and based on full and accurate disclosure of all
          material facts and circumstances and none of them is the subject of
          any dispute with any Taxation Authority.

14.2      No Group Member is involved in any dispute with any Taxation Authority
          concerning any matter likely to affect in any way the liability of any
          Group Member to Taxation.

14.3      None of the Taxation affairs of any Group Member has ever been the
          subject of any investigation or enquiry by any Taxation Authority
          (other than routine questions and audit visits) and no Taxation
          Authority has indicated to a Group Member that it intends to
          investigate the Taxation affairs of any Group Member.

14.4      Each Group Member has sufficient records and information available in
          order to prepare the tax computations and returns for the accounting
          period ending on 31 December 2006.

14.5      The disposal of any beneficial interest in any property by any Group
          Member where such disposal is referred to in the Disclosure Letter has
          been properly treated as a disposal for tax purposes by the relevant
          Group Member in the appropriate accounting period, where required to
          be so treated for tax purposes, and where required to be so treated
          for tax purposes, such disposal was reflected in the tax return of the
          relevant Group Member for the accounting period in which such disposal

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          took place or was treated as taking place for the relevant tax
          purpose.

15.       Penalties and interest

15.1      No Group Member has since the Accounting Date paid any fine, penalty,
          charge, surcharge or interest charged by virtue of any of the
          provisions of TMA or any other Taxation Statute.

15.2      As far as the warranting Share Seller is aware there are no
          circumstances which are likely to cause any Group Member to become
          liable to pay any fine, penalty, charge, surcharge or interest, or
          become subject to any forfeiture, as mentioned in paragraph 15.1.

16.       Distributions and payments

16.1      Each Group Member has deducted and properly accounted to the
          appropriate Taxation Authority for all amounts which it has been
          obliged to deduct in respect of Taxation, has complied in all material
          respects with all reporting requirements relating to all such amounts
          and has (where required by the applicable Taxation Statute) duly
          provided certificates of deduction of tax to the recipients of
          payments from which deductions have been made.

16.2      No Group Member has at any time declared, paid or made any dividend or
          other payment which is, or could be treated as, a distribution for the
          purposes of Part VI ICTA or section 418 ICTA except any dividend
          disclosed in its audited statutory accounts nor is it bound to make
          such a distribution.

17.       Close companies

          No Group Member is, or has ever been, a close investment-holding
          company within the meaning of section 13A ICTA.

18.       Group transactions

          No Group Member has in the six years ending on Completion:

18.1      acquired any asset from any company not being another Group Member
          which at the time of the acquisition was a member of the same group of
          companies as defined in section 170 TCGA;

18.2      entered into or been otherwise involved in any transaction to which
          section 774 ICTA applies;

18.3      surrendered or claimed or agreed or arranged to surrender or claim
          (and prior to Completion will not surrender or claim or agree or
          arrange to surrender or claim) any amount by way of Group Relief
          pursuant to sections 402 to 413 (inclusive) ICTA other than from or to

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          another Group Member nor made or received and is not liable to make or
          entitled to receive a payment for Group Relief to or from any person
          (not being another Group Member); or

18.4      been a party to any such reconstruction as is described in section 343
          ICTA;

19.       Capital Allowances

          Each Group Member has in its possession details of all capital
          allowances claimed by it in respect of the accounting period ended on
          the Accounting Date in respect of each asset or pool of assets in
          respect of which separate computations for capital allowances are
          required to be made or, as a result of any election, are made.

20.       Gifts

20.1      There is no outstanding Inland Revenue charge (as defined in section
          237 IHTA) over any asset of any Group Member or over any of the Shares
          to be sold pursuant to this Agreement by the warranting Share Seller.

20.2      There are in existence no circumstances by virtue of which any such
          power as is mentioned in section 212 IHTA could be exercised in
          relation to any asset of any Group Member or to any of the Shares to
          be sold pursuant to this Agreement by the warranting Share Seller or
          by virtue of which any such power could be exercised but for the
          provisions of section 204(6) IHTA.

21.       Capital gains

21.1      No Group Member has at any time made an election under section 35(5)
          TCGA.

21.2      Each Group Member has sufficient records relating to past events to
          enable it to calculate its liability to Taxation on capital gains or
          relief from Taxation on capital gains which would arise on a disposal
          or realisation of its assets.

22.       VAT: general

22.1      Each Group Member is duly registered and is a taxable person for the
          purposes of VAT.

22.2      Each Group Member has complied in all material respects with all
          statutory requirements, orders, provisions, directions or conditions
          relating to VAT.

22.3      Each Group Member maintains in all material respects correct and
          up-to-date records for the purposes of all legislation relating to
          VAT.

22.4      No Group Member:

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          22.4.1    is in arrears with any payment or returns under legislation
                    relating to VAT or excise duties, or liable to any abnormal
                    or non-routine payment of VAT, or any forfeiture or penalty,
                    or to the operation of any penal provision;

          22.4.2    has been or applied for treatment as a member of a group for
                    VAT purposes under section 43 VATA; or

          22.4.3    is, or has agreed to become, an agent, manager or factor for
                    the purposes of section 47 VATA of any person who is not
                    resident in the United Kingdom.

23.       VAT: property transactions

          Neither any Group Member nor any relevant associate (within the
          meaning of paragraph 3(7) Schedule 10 VATA) has made any election
          under paragraph 2(1) Schedule 10 VATA in respect of any land in, over
          or in respect of which the Group Member has any interest, right or
          licence to occupy.

24.       Residence and offshore interests

          Each Group Member is and has at all times been resident in the United
          Kingdom for the purposes of all Taxation Statutes and has not at any
          time been resident outside the United Kingdom for the purposes of any
          Taxation Statute or any double taxation arrangements.

25.       Tax avoidance

          No Group Member has entered into any transaction or series of
          transactions, scheme or arrangement of which the main purpose, or one
          of the main purposes, was the avoidance or reduction of a Taxation
          liability or for which there was no commercial purpose.

26.       Transfer pricing

          No transactions or arrangements involving a Group Member have taken
          place which are such that the provisions of section 770, 770A or
          schedule 28AA ICTA or equivalent legislation or legal principles in
          any other jurisdiction have been or could be applied thereto. No Group
          Member is, nor has it been, involved in any correspondence, enquiry or
          dispute in any jurisdiction concerning the adjustment of profits of
          associated enterprises for Taxation purposes.

27.       Stamp duty

          All documents in the possession of each Group Member or to the
          production of which it is entitled and which attract stamp or transfer
          duty in the United Kingdom or elsewhere have been properly stamped. No

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          Group Member owns any interest in UK land or buildings which is
          evidenced by an uncompleted contract.

28.       Special Arrangements

          No Tax Authority has agreed to operate any special arrangement (being
          an arrangement not based on a strict and detailed application of the
          relevant legislation which is not generally available to companies
          such as the Group Members) in relation to the affairs of any Group
          Member, nor has a Group Member taken any action which would or might
          alter, prejudice or in any way disturb any arrangement or agreement
          which it has negotiated with any Tax Authority nor will any
          transaction carried out pursuant to this Agreement have such an
          effect.

29.       Clearances and consents

          All clearances and consents obtained by any Group Member from any Tax
          Authority were based on full and accurate disclosure of all the facts
          and circumstances material to the decision of the Tax Authority. Each
          Group Member has complied in all material respects with any conditions
          to which any such consents or clearances are subject and has not so
          far as the Share Sellers are aware taken any action which might alter,
          prejudice or in any way disturb any such consent or clearance nor will
          anything done pursuant to this Agreement have such an effect.

PART 4 - ROC BUSINESS ASSETS

30.       Definitions

          In this Part 4 of this Schedule:

          "Special Provisions Order"    means the Value Added Tax (Special
                                        Provisions) Order 1995

31.       VAT provisions

31.1      All amounts expressed in this Agreement as being payable by the Buyer
          are expressed exclusive of VAT which may be chargeable and the Buyer
          agrees to pay to the ROC Seller in addition to such amounts, any VAT
          for which the ROC Seller is liable to account to HMRC in respect of
          any supply made by the ROC Seller to the Buyer under or in connection
          with this Agreement forthwith on production of a valid VAT invoice by
          the ROC Seller.

31.2      The parties intend that section 49 VATA and Article 5 Special
          Provisions Order will apply to the transfer of the ROC Business Assets
          to be transferred by each ROC Seller and each ROC Seller and the Buyer
          will each use its reasonable endeavours to secure that pursuant to the
          provisions referred to above the sale of the ROC Business Assets to be

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          sold by the relevant ROC Seller is treated as neither a supply of
          goods nor a supply of services for the purposes of VAT but as the
          transfer of a business as a going concern. Provided always that
          nothing in this paragraph 31.2 shall require any ROC Seller to request
          a review of any determination by HMRC or any notification by HMRC that
          section 49 VATA and Article 5 Special Provisions Order does not apply
          to the transfer of ROC Business Assets in whole or in part.

31.3      Each ROC Seller represents, warrants and undertakes to the Buyer in
          respect of itself only that it is duly and properly registered for the
          purposes of VAT.

31.4      The Buyer represents, warrants and undertakes to each of the ROC
          Sellers that it is duly and properly registered for the purposes of
          VAT or that it is a taxable person and has applied to become so
          registered.

31.5      The Buyer warrants to each of the ROC Sellers that the Buyer will
          following Completion use the ROC Business Assets in carrying on the
          same kind of business as the ROC Business (whether or not as part of
          any existing business of the Buyer).

31.6      If HMRC notify a ROC Seller that they do not agree that the sale of
          the ROC Business Assets to be sold by that ROC Seller (or any part of
          them) pursuant to this Agreement falls within section 49 VATA and
          Article 5 Special Provisions Order, that ROC Seller will forthwith on
          receipt of such notification or on Completion (whichever is the later)
          issue to the Buyer a valid VAT invoice in respect of the sale of the
          relevant ROC Business Assets. The Buyer will forthwith on receipt of
          such invoice pay to that ROC Seller the VAT charged on the sale of the
          relevant ROC Business Assets in addition to the Consideration payable
          thereon.

31.7      The Buyer undertakes to indemnify and hold harmless each ROC Seller
          (on an after tax basis) in respect of any liability of a ROC Seller to
          pay HMRC any interest, penalty or surcharge by reason of the late
          payment of any VAT charged on the sale of the ROC Business Assets to
          be sold by that ROC Seller (or any part of them) pursuant to the
          provisions of this Agreement.

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                                   SCHEDULE 5

                             Completion Arrangements

Part 1 - On or around Exchange

1.        The Sellers shall deliver to the Buyer:

1.1       on execution of this Agreement:

          1.1.1     the Disclosure Documents duly executed on behalf of the
                    Sellers;

          1.1.2     an extract of a resolution of the board of directors of each
                    Seller authorising the execution of this Agreement and the
                    Disclosure Letter; and

          1.1.3     the Ridgewood Letter of Undertaking duly executed by or on
                    behalf of the Managing Shareholder; and

1.2       within 5 Business Days of execution of this Agreement, legal opinions
          (in the agreed terms) in respect of each of the Sellers; and

1.3       within 10 Business Days of execution of this Agreement, the Share
          Sellers shall deliver to the Buyer:

          1.3.1     the consent to the change of control following Completion
                    pursuant to the gas agreement with Plymouth City Council in
                    respect of Chelson Meadow Energy Limited (or any amendment
                    or variation to such gas agreement the effect of which is
                    that the consent of Plymouth City Council to any change of
                    control is no longer required); and

          1.3.2     the gas agreements with Cornwall County Council and SITA UK
                    Limited, in respect of Connon Bridge Energy Limited and
                    United Mines Energy Limited, executed with change of control
                    provisions which are in materially the same form as the
                    those set out in the gas agreement for Jameson Road Energy
                    Limited.

2.        On execution of the Agreement:

2.1       the Buyer shall deliver:

          2.1.1     to the Sellers the Macquarie Letter of Undertaking duly
                    executed by Macquarie Investment Management (UK) Limited;
                    and

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          2.1.2     to New Hampshire Insurance Company the Signing No Claims
                    Declaration set out in Appendix B1 to the Warranty and
                    Indemnity Insurance; and

2.2       or as soon as reasonably practicable following the date of this
          Agreement, the Sellers shall deliver to the Buyer a binding offer of
          the Warranty and Indemnity Insurance in the agreed terms.

Part 2 - Completion

At Completion the following will take place:

3.        Items For Delivery

          The following items will be produced and delivered by the Sellers (or,
          in relation to paragraphs 3.11 and 3.12, left at the Property) to the
          Buyer:

          Share Transfers

3.1       Executed transfers of each Share Seller's Shares in favour of the
          Buyer (or its nominee(s)) and, immediately following Completion,
          executed transfers of all shares in the capital of any Group Member
          (other than a Dormant Company) which are registered in the name of
          BoS, or any company acting as nominee for BoS, in favour of the
          beneficial owner of such Group Member.

3.2       Any waiver, consent or other document necessary to give the Buyer (or
          its nominee(s)) full legal and beneficial ownership of the Shares.

3.3       Share certificates in respect of all the issued shares of each Group
          Member (or in the case of any lost certificate an indemnity
          satisfactory to the Buyer in relation to it).

          Authorisations

3.4       A copy of a resolution or extract of a resolution of the board of
          directors (certified by a duly appointed officer as true and complete)
          of each Group Member authorising the execution of and the performance
          by the relevant company of its obligations under each of the documents
          to be executed by it.

3.5       An irrevocable power of attorney in the agreed terms by each
          registered holder of the Shares which enables the Buyer or its nominee
          to attend and vote at general meetings of the Company pending
          registration of the transfer of the Shares.

          Resignations and Appointments

                                       95
<PAGE>

3.6       A letter of resignation in the agreed terms from Alexandra Helen
          Pentecost, Andrew West, Dominic Andrew Greenough, Douglas Ralph
          Wilson, Randall Duane Holmes and Robert Ernest Swanson as director of
          each Group Member, together with a letter of resignation in the agreed
          terms from Harry Hugh Patrick Wyndham as director of CLPE Holdings
          Limited, CLP Envirogas Limited CLP Organogas S.L. and CLP Envirogas
          S.L.

3.7       A letter of resignation in the agreed terms from each secretary of
          each Group Member.

3.8       A copy of a letter in the agreed terms to each Group Member from its
          auditors resigning from office with effect from Completion and
          containing the statement required by section 394 CA 1985, the original
          of the letter having been deposited at the registered office of the
          relevant company.

          Company Documentation

3.9       The certificate of incorporation, any certificate(s) of incorporation
          on change of name, the common seal and the statutory books and
          registers of each Group Member written up to but not including
          Completion and reflecting the details of each Group Member as set out
          in Part 1 and Part 2 of Schedule 2.

3.10      All deeds and documents relating to the title of any Group Member to
          the Property.

3.11      All cheque books in current use of each Group Member.

3.12      All papers, books, records, keys, credit cards and other property (if
          any) of each Group Member which are in the possession or under the
          control of the Seller or any other person who resigns as an officer of
          any Group Member in accordance with this Schedule.

          Financial

3.13      A copy of the bank mandate of each Group Member and copies of bank
          statements in respect of each account of each Group Member as at the
          close of business on the last Business Day prior to Completion.

3.14      A deed of release in the agreed terms executed by BoS in respect of
          all the fixed charges and debentures granted to BoS by each Group
          Member together with forms 403a, duly executed by the relevant Group
          Member, to ensure that no outstanding indebtedness to or security in
          favour of BoS exists at Completion.

3.15      Statement of the bank accounts, for each Group Member as at a date not
          more than 2 Business Days prior to the Completion Date.

          Other

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3.16      All of the ROC Business Assets that are capable of transfer by
          delivery.

3.17      Assignments in the agreed terms of the ROC Business Contracts.

3.18      The Company will pay the Bonus Amount to the following individuals:

          (i)       Harry Wyndham;

          (ii)      Dominic Greenough;

          (iii)     Andrew West;

          (iv)      Alexandra Pentecost,

          and the Buyer will procure that the Company, following Completion,
          pays to HMRC all PAYE and employees and employers National Insurance
          Contributions in relation to the Bonus Amount.

3.19      An executed deed of termination of the Operations and Maintenance
          Agreement between Landfill Services Limited, Ridgewood CLP Management
          Limited and Ridgewood dated 1 July 1999.

3.20      The Repeated Warranties Bring Down Certificate.

3.21      A deed of release in the agreed terms by each Dormant Company of its
          right, title and interest in or to any ROC Business Contract or any
          other Contract to which a Group Member is a party together with a
          release of any liabilities owed to such Dormant Company by Group
          Members.

3.22      In relation to the waiver under the CLPE Holdings Management Incentive
          Plan (the "Plan") by the Associated Participants (as such term is
          defined in the Plan) of the amount that would have been payable to
          them but for such waiver:

          (i)       a copy of the board minutes of the Company in the agreed
                    terms dated 22 January 2007 to request the Associated
                    Participants to waive their personal rights under the Plan;
                    and

          (ii)      a copy of the deed of waiver in the agreed terms dated 22
                    January 2007 duly executed by Randy Holmes and Doug Wilson
                    relating to the waiver of their personal rights under the
                    Plan;

          (iii)     copies of letters in the agreed terms dated 22 January 2007
                    to each of the Associated Participants to explain the waiver
                    by Randy Holmes and Doug Wilson of their personal rights
                    under the Plan and to request execution of deeds of
                    acknowledgement; and

          (iv)      copies of a deed of acknowledgement in the agreed terms
                    dated 22 January 2007 from each of the Associated
                    Participants under which such Associated Participant

                                       97
<PAGE>

                    acknowledges that his entitlement to a bonus is unchanged by
                    the waivers and notes the withholding of the erroneous July
                    bonuses.

3.23      A certificate from the Managing Shareholder in accordance with clause
          6.1.1.

3.24      Written confirmation from the Sellers to the Buyer's reasonable
          satisfaction that the Dormant Companies together with CLP Organogas
          S.L. and CLP Envirogas S.L. have been transferred to an entity which
          is not a Group Member.

3.25      Completion Legal opinions in respect of each of the Sellers in the
          agreed terms.

3.26      A deed of release in the agreed terms by each Seller of all claims
          against Group Members and releasing any security held over the
          property and assets of Group Members.

3.27      A deed of release in the agreed terms from Arbutus Projects Limited
          releasing each Group Member from all liabilities owed by such Group
          Member to Arbutus Projects Limited.

3.28      A deed of release in the agreed terms from each Group Member
          indemnifying non-Group Members against any liability under guarantees
          given in favour of third parties in relation to the performance by the
          Group Members under contractual arrangements including the gas
          agreements.

3.29      A compromise agreement between Douglas Wilson and the Company in the
          agreed terms, duly executed, and countersigned by an independent
          solicitor confirming that Mr Wilson has taken independent legal advice
          and understands and agrees to the terms of his termination.

3.30      The Sellers' Solicitors' Undertaking in the agreed terms.

3.31      The Sellers will pay the premium due under the Warranty and Indemnity
          Insurance to New Hampshire Insurance Company.

3.32      The Buyer will deliver to New Hampshire Insurance Company the
          Completion No Claims Declaration set out in Appendix B2 to the
          Warranty and Indemnity Insurance.

4.        Convening of Meetings

4.1       The Share Sellers will procure that duly convened board meetings of
          each relevant Group Member are held at which:

          4.1.1     the transfers referred to in paragraphs 3.1 (subject to
                    stamping if not previously effected) are approved for
                    registration in the books of the Company;

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<PAGE>

          4.1.2     the accounting reference date of each Group Member is
                    changed to 31 March;

          4.1.3     the resignations of directors, secretaries and auditors
                    referred to in each of paragraphs 3.6, 3.7 and 3.8 are
                    accepted with effect from the end of the relevant board
                    meeting;

          4.1.4     such persons as are nominated by the Buyer as directors,
                    secretary and auditors of each Group Member are appointed
                    with effect from the end of the relevant board meeting; and

          4.1.5     all existing instructions to the bankers of each Group
                    Member are revoked and new instructions given to such
                    bankers as the Buyer may nominate, in such form as the Buyer
                    directs.

5.        Financial Assistance Whitewash

          The relevant Group Members will undertake the "whitewash" procedure
          set out in Section 155 of the Companies Act 1985 so as to ensure that
          the relevant Group Members (acting by the directors to be appointed by
          the Buyer) can (i) repay the Term Debt without any liability on the
          Company or any of its directors and (ii) assume a new loan from the
          Buyer's funders and secure its assets in respect of the same (iii)
          receive an inter-company loan from the Buyer (or a member of the
          Buyer's Group) and undertake to repay such loan, with interest and the
          Buyer will procure that the directors mentioned in this paragraph will
          swear and execute such documents and attend such meetings of the Group
          Members as are necessary to complete such "whitewash" procedure and
          the Share Sellers shall procure that they exercise their voting
          rights, or procure the exercise by the relevant shareholder(s) in the
          relevant Group Members required, to approve any shareholder
          resolutions required in relation to the foregoing prior to Completion
          (including any consent to short notice and/or signing written
          resolutions in respect of the matters above).

6.        Payments

6.1       The Buyer will pay into the Sellers' Solicitor's Client Account:

          6.1.1     a sum equal to the amounts payable under clauses 4.1 and
                    4.3;

          6.1.2     a sum equal to the Bonus Amount; and

          6.1.3     the sum equal to the amount necessary to repay the Term Debt
                    in full at Completion in full and final settlement of the
                    same for and on behalf of the relevant Group Company,

                    less the following amounts:

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<PAGE>

          6.1.4     the amount required to be paid by the Share Sellers to the
                    Buyer pursuant to clause 4.7;

          6.1.5     the full amount of the premium payable to purchase the
                    Warranty and Indemnity Insurance (the cost of which the
                    Sellers agree shall be borne by them); and

          6.1.6     the amount due from the Share Sellers to the Company
                    pursuant to paragraph 8 of this Schedule 5
                    and the deduction of such amounts at paragraphs 6.1.4 to

          6.1.6     shall constitute good and sufficient discharge to the
                    Sellers under clause 4.7 and paragraphs 3.31 and 8 of this
                    Schedule 5 respectively.

6.2       The Buyer will instruct the Sellers' Solicitors to release from the
          Sellers' Solicitor's Client Account:

          6.2.1     to the Share Sellers and the ROC Sellers, the sum equal to
                    the amounts payable under clauses 4.1 and 4.3 (as may be
                    adjusted pursuant to paragraph 6.1);

          6.2.2     to those persons referred to in paragraph 3.1.8, an amount
                    equal to the Bonus Amount; and

          6.2.3     to BoS and Clarke Energy Limited, the sum equal to the
                    amount necessary to repay the Term Debt in full at
                    Completion in full and final settlement of the same.

7.        Repayment of prior bonuses

          Ridgewood shall procure that Douglas Wilson and Randy Holmes shall pay
          the sums of (pound sterling)9,091.00 and (pound sterling)1,818.20
          respectively to the Company representing the gross amounts
          inadvertently received by them as a bonus under the CLPE Holdings
          Management Incentive Plan, details of which are set out in the
          disclosure against warranty 8.7 in paragraph 3 of the Disclosure
          Letter.

8.        Repayment of Shareholder's Loans

          On Completion, the Share Sellers will severally repay the sum of
          (pound sterling)319,996.16 (in the case of Ridgewood) and (pound
          sterling)43,635.84 (in the case of Arbutus), being the amounts due
          from them to the Company and the Company will issue letters of
          satisfaction and release in the agreed terms to such Sellers.

                                      100
<PAGE>

                                   SCHEDULE 6

                                  The Property
<TABLE>
<CAPTION>

--------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>          <C>              <C>                                  <C>
Description                    Tenant        Title number     Date of lease and parties to it      Term and current rent
                                             and quality of
                                             title if reg'd
--------------------------------------------------------------------------------------------------------------------------------
Lease of land at Queens Park   Queens Park    unregistered    Lease dated 1 August 2000 between    15 years from 1 August 2000
Road, being 32 square yards    Road Energy                    the Council of the Borough of        rent increased with effect
or thereabouts situate on      Limited                        Burnley and Queens Park Road Energy  from 31 December 2006 to
the North Easterly side of                                    Limited                              (pound sterling)11,250 p.a.
Queen's Park Road Burnley                                                                          exclusive of VAT
Lancashire
--------------------------------------------------------------------------------------------------------------------------------
Lease of Units 14 & 15         CLP Envirogas  unregistered    Lease dated 13 June 2003 between     5 years from 21 May 2003
Queensbrook, Bolton                                           (1) North West Development Agency,   (pound sterling)27,000 p.a
Technology Exchange, Spa                                      (2) CLP Envirogas Limited and (3)
Road,Bolton, BL1 4AY                                          CLPE 1991 Limited
--------------------------------------------------------------------------------------------------------------------------------
Lease of 4th floor, 20-22      CLP Envirogas  unregistered    Tenancy dated 9 August 2006 between  One year from 1 August 2006
Queen Street, Mayfair,                                        (1)Paprika Limited and (2) CLP       (pound sterling)38,355 p.a
London, W1J 5 PR                                              Envirogas Limited
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      101
<PAGE>

                                   SCHEDULE 7

                      Limitations on the Sellers' liability

1.        The provisions of this Schedule will apply notwithstanding any
          provisions to the contrary in this Agreement.

2.        Financial limitations

2.1       The Sellers' maximum aggregate liability in respect of all Relevant
          Claims including the Buyer's costs and expenses incurred in
          successfully bringing such a claim and the costs and expenses incurred
          by the Group in successfully defending such a claim under this
          Agreement shall not exceed, and the Sellers will not be liable for any
          amount which exceeds, the amount actually recovered under the Warranty
          and Indemnity Insurance and the Buyer's only right of recovery for any
          Relevant Claim shall be under the Warranty and Indemnity Insurance.

2.2       Subject always to paragraph 2.1 above, the Sellers will not be liable
          for any Relevant Claim unless the amount of the liability in respect
          of that Relevant Claim exceeds (pound sterling)50,000.

2.3       Subject always to paragraph 2.1 above, the Sellers will not be liable
          for any Relevant Claim unless and until the amount of the liability in
          respect of that Relevant Claim, when aggregated with the amount of the
          liability in respect of all other Relevant Claims (excluding any
          amounts in respect of a Relevant Claim for which the Sellers have no
          liability because of paragraph 2.2), exceeds (pound sterling)1,000,000
          in which event the Sellers will be liable for the whole amount of such
          liability. For the avoidance of doubt, in determining whether any
          thresholds referred to in this paragraph 2.3 have been reached, all
          Relevant Claims (excluding any amounts in respect of a Relevant Claim
          for which the Sellers have no liability because of paragraph 2.2)
          shall be aggregated.

3.        Time limitation

3.1       No Seller will be liable for a Relevant Claim (other than a claim
          under the Tax Covenant or a claim arising as a result of a breach of
          the Tax Warranties) unless:

          3.1.1     within a period of nine (9) months after the Completion
                    Date, the relevant Seller receives written notice of such
                    Relevant Claim from the Buyer specifying in reasonable
                    detail (to the extent such information is available at the
                    time of the claim) the matter which gives rise to the claim,
                    the nature of the claim and the amount claimed in respect of
                    such claim; and

                                      102
<PAGE>

          3.1.2     provided the Relevant Claim has not otherwise been
                    satisfied, settled or withdrawn, proceedings in respect of
                    the Relevant Claim are issued and served on the relevant
                    Seller within a period of three (3) months starting on the
                    day of notification of the Relevant Claim.

4.        Limitations on Title Warranties

          Paragraphs 2 and 3 will not apply in respect of a Relevant Claim
          concerning the Title Warranties.

5.        Specific limitations

          No Seller will have any liability in respect of any Relevant Claim
          (other than a claim under the Tax Covenant or a claim arising as a
          result of a breach of the Tax Warranties):

5.1       to the extent that it arises or is increased as a result of the
          passing of, after the date of this Agreement, or a change in, any law,
          rule, regulation, interpretation of the law or administrative practice
          of a government, government department, agency or regulatory body
          after the date of this Agreement in any case after the date of this
          Agreement;

5.2       if it would not have arisen but for any act, omission, transaction or
          arrangement carried out at the request of or with the written consent
          of the Buyer before Completion;

5.3       if it would not have arisen but for any voluntary act, omission,
          transaction or arrangement carried out after Completion by the Buyer
          or after Completion by any Group Member or any of their respective
          directors, employees or agents or successors in title;

5.4       other than pursuant to the Warranty and Indemnity Insurance, to the
          extent that it relates to any loss for which the Buyer or any Group
          Member makes recovery whether by contribution or indemnity by
          insurance or would have been entitled to recover if valid and adequate
          insurance:

          5.4.1     had been maintained at any time after Completion; and

          5.4.2     was of a type as in force in relation to the business or the
                    relevant Group Member as the case may be at the Completion
                    Date;

5.5       to the extent that the subject matter of the Relevant Claim is a
          matter specifically provided for, or specifically included as a
          liability, or disclosed, in the Accounts;

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<PAGE>

5.6       to the extent that the subject matter of the Relevant Claim is a
          matter specifically and identifiably provided for, or included as a
          liability, in the Working Capital Statement;

5.7       to the extent that the subject matter of the Relevant Claim is
          specifically and identifiably taken into account in determining the
          Working Capital determined in accordance with Schedule 9; or

5.8       to the extent of any corporation tax credits, reliefs, benefits or
          accruals obtained by the Group by reason of or arising out of the
          fact, matter, events or circumstances giving rise to the Relevant
          Claim.

6.        Recovery from third parties

6.1       If the Buyer or any Group Member or any member of the Buyer's Group is
          entitled to recover from some other person (for the avoidance of doubt
          including insurers (other than the Warranty and Indemnity Insurance)
          and Taxation authorities or the obtaining of any Taxation credit,
          relief, benefit or accrual) any sum in respect of any matter or event
          which could give rise to a Relevant Claim, the Buyer will (or will
          procure that the relevant Group Member will) take all reasonable steps
          to recover that sum and any sum recovered will reduce the amount of
          such Relevant Claim after deduction of all reasonable costs and
          expenses of recovery.

6.2       If a Seller pays the Buyer or any Group Member a sum to settle or
          discharge a Relevant Claim and the Buyer or any Group Member or any
          member of the Buyer's Group subsequently recovers whether by payment,
          discount, credit, relief, accrual or otherwise from any third party
          (including any Taxation authority) a sum which is referable to the
          Relevant Claim then:

          6.2.1     either the Buyer will (or will procure that the relevant
                    Group Member will) repay the relevant Seller immediately the
                    amount recovered from the third party less any reasonable
                    costs and expenses incurred in recovering the same; or

          6.2.2     if the figure resulting under paragraph 6.2.1 above is
                    greater than the amounts paid by the relevant Seller to
                    settle or discharge the Relevant Claim in question, then the
                    Buyer is only obliged to repay to that Seller such amount as
                    is equivalent to the sum paid by that Seller in settlement
                    or discharge of that Relevant Claim.

7.        No double recovery

          The Buyer is not entitled to recover damages or otherwise obtain
          payment, reimbursement or restitution under this Agreement more than
          once in respect of the same loss or liability (other than a recurring
          loss or liability).

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<PAGE>

8.        To the extent that any of the Share Sellers have made a payment to the
          Buyer in respect of a Relevant Claim prior to the determination of the
          Working Capital Statement in accordance with clause 5 and Schedule 9
          and to the extent that the liability or matter which is the subject
          matter of the Relevant Claim has been provided for in the Working
          Capital Statement, the Buyer shall ensure that such liability or
          matter (to the extent of the payment made by the Share Sellers in
          respect thereof) is excluded from the Working Capital Statement prior
          to the same being agreed or determined. To the extent that a Relevant
          Claim has been made or agreed and not yet paid, then to the extent
          that this matter has been provided for in the Working Capital
          Statement, such claim shall be deemed to have been withdrawn or
          reduced (as the case may be) and the Buyer shall be deemed to accept
          that the compensation for the same is the agreement or determination
          of the Consideration pursuant to clause 5.

9.        Contingent Liabilities

          If any potential Relevant Claim (not being a claim under Part 2 of
          Schedule 4) arises as a result of a contingent or unquantifiable
          liability of any Group Member, no Share Seller will be obliged to pay
          any sum in respect of the potential Relevant Claim until the liability
          either ceases to be contingent or becomes quantifiable but the time
          limits referred to in paragraph 3.1.2 shall be deemed to extend until
          three months following the date on which the Buyer becomes aware that
          such contingent or unquantifiable liability has crystallised provided
          that such contingent or unquantifiable liability crystallises or
          becomes quantifiable within 9 months of the date on which the Buyer
          gave notice of such liability to the Sellers under clause 3.1.1.

10.       The Buyer's Group

          The liability of the Share Sellers to the Buyer or any Group Member
          will cease and any subsisting Relevant Claim will (to the extent that
          it related to that Group Company) be withdrawn upon the relevant Group
          Member ceasing to be a member of the Buyer's Group after Completion.

11.       Conduct of Relevant Claims

11.1      If the Buyer or the relevant Group Member becomes aware that matters
          have arisen which will or are likely to give rise to a Relevant Claim
          (not being a Tax Claim as defined in Part 1 of Schedule 4, to which
          the provisions of paragraph 7 of Schedule 4 shall apply to the
          exclusion of this paragraph 11), the Buyer will (or will procure that
          the relevant Group Member will):

          11.1.1    as soon as reasonably practicable notify the relevant
                    Seller(s) in writing of the potential Relevant Claim and of
                    the matters which will or are likely to give rise to such
                    Relevant Claim;

                                      105
<PAGE>

          11.1.2    not make any admission of liability, agreement or compromise
                    with any person, body or authority in relation to the
                    potential Relevant Claim without prior consultation with the
                    relevant Seller(s);

          11.1.3    at all times disclose in writing to the relevant Seller(s)
                    all material information and documents relating to the
                    potential Relevant Claim or the matters which will or are
                    likely to give rise to the potential Relevant Claim;

          11.1.4    if requested by a Seller give that Seller and its
                    professional advisers reasonable access to:

                    11.1.4.1  the personnel of the Buyer and/or the relevant
                              Group Member in order to interview the personnel;
                              and

                    11.1.4.2  any relevant premises, chattels, accounts,
                              documents and records within the power, possession
                              or control of the Buyer and/or the relevant Group
                              Member in order to, at the Seller's own expense,
                              examine and photograph the premises and chattels
                              and to examine, photograph and take copies of the
                              accounts, documents and records;

          11.1.5    take such action as the relevant Seller(s) may reasonably
                    request to avoid, resist, contest, defend, compromise or
                    remedy the potential Relevant Claim or the matters which
                    will or are likely to give rise to such Relevant Claim
                    provided that each Seller has first provided the Buyer with
                    adequate security against all reasonable costs which may be
                    incurred as a result of a request by that Seller.

11.2      If in the reasonable opinion of the Buyer, the procedures detailed in
          paragraph 11.1 above would have a materially detrimental affect on the
          business of the Buyer's Group (including, following Completion, the
          Group) then the Buyer shall have no obligations to comply with
          paragraph 11.1 and the Sellers shall have no right against the Buyer
          in respect thereof.

12.       Mitigation

          Nothing in this Schedule 7 will in any way restrict or limit the
          Buyer's or the relevant Group Member's common law duty to mitigate its
          loss.

13.       No Limitations for Fraud

          Nothing in this Schedule 7 will have the effect of limiting or
          restricting any liability of a Seller in respect of a Relevant Claim
          arising as a result of any fraud or wilful misconduct or omission by
          or on behalf of that Seller.

                                      106
<PAGE>

14.       Payment of Relevant Claim or Tax Claim to be reduction in
          consideration

          Any payment made by a Seller in respect of any Relevant Claim will be
          deemed to be a reduction in the Consideration payable to that Seller
          in accordance with clause 4 of this Agreement.

15.       Buyer's Awareness

          The Sellers shall have no liability under this Agreement for or in
          respect of any Warranty if the Buyer, or any member of the Buyer's
          Group, had actual knowledge, prior to the date of this Agreement of
          any facts or circumstances which could constitute a breach of any of
          such Warranty.

                                      107
<PAGE>

                                   SCHEDULE 8

                               Sellers Obligations

Part I - Share Sellers Obligations

1.        The Share Sellers:

          (i)       confirm that, from the Effective Date to the date of this
                    Agreement, each Group Member has complied with paragraphs
                    1.1 to 1.25 (inclusive) below and, for the purposes of this
                    paragraph (i) such provisions shall be deemed to be in the
                    past tense; and

          (ii)      will immediately following the date of this Agreement and
                    pending Completion procure that each Group Member will,
                    except as required by law or relevant regulatory authority
                    or with the written consent of the Buyer, such consent not
                    to be unreasonably conditioned withheld or delayed:

1.1       not incur expenditure on capital account on any single item in excess
          of (pound sterling)50,000 (fifty thousand pounds) or items having an
          aggregate capital expenditure in excess of (pound sterling)250,000
          (two hundred and fifty thousand pounds) and in either case not enter
          into any commitment to do so;

1.2       not sell any part of its assets except Stock in the ordinary course of
          trading;

1.3       not borrow any money, except under its existing credit facilities from
          its bankers where the borrowing does not exceed the amount available
          to be drawn under those facilities, or amend or agree to amend the
          terms of its borrowings under its existing credit facilities;

1.4       not make any payments out of or drawings on its bank account other
          than routine payments or make any single routine payment which exceeds
          (pound sterling)150,000 (one hundred and fifty thousand pounds);

1.5       not enter into any guarantee or indemnity or other agreement to
          secure, or incur financial or other obligations with respect to,
          another person's obligations;

1.6       not enter into any long term Contract (meaning a term in excess of one
          year) or commitment other than as required pursuant to this Agreement;

1.7       not grant any lease, licence or third party right or terminate, or
          give notice to terminate, a lease, licence or third party right in
          respect of any part of the Property;

1.8       not change the existing use or assign or otherwise dispose of any part
          of the Property;

                                      108
<PAGE>

1.9       not make any loan or gifts to any person save for an advance of
          expenses to employees in the normal course;

1.10      not enter into any leasing, hire purchase or other agreement or
          arrangement for payment on deferred terms save for in the ordinary
          course of business;

1.11      not declare, make or pay any dividend or other distribution;

1.12      not create an Encumbrance over the Property or another asset of a
          Group Member;

1.13      not appoint any additional director;

1.14      not take on any new employee, officer or director or terminate or give
          notice to terminate (other than for cause) the employment or
          engagement of any employee, officer or director or make or propose to
          make any change in the terms or conditions of employment or engagement
          or remuneration or pension benefits of any employee, officer or
          director;

1.15      not create, allot, issue, grant or agree to grant any option over,
          acquire, repay or redeem any class of share or loan capital and not
          vary or agree to vary the rights of, any class of share or loan
          capital;

1.16      not make any payment or transfer any value (or enter into any
          Contracts or incur any legally binding commitment to pay or transfer
          any value) from any Group Member to any of the Dormant Companies or to
          the Sellers and/or their Affiliates;

1.17      not enter into any Contract or incur any legally binding commitment
          which results in Liabilities being incurred to any third parties save
          in the ordinary course of business and ordinary course means a
          contract which requires payments by a Group Member to a third party of
          less of (pound sterling)10,000 in one quarter;

1.18      not enter into any Contract or incur any legally binding commitment
          which results in Liabilities being incurred by the Group Member in
          favour of the Dormant Companies or to the Sellers and/or their
          Affiliates;

1.19      not make any payment of (or enter into any Contract or incur any
          legally binding commitment to pay) any transaction costs or bonuses or
          fees in connection with this Agreement or the transactions
          contemplated by it

1.20      not forgive or write off or agree to reduce any liabilities (including
          any inter-company loans within the Group);

1.21      not commence or settle any litigation (other than routine debt
          collection in the ordinary course of business) nor settle with HMRC
          any disputed Liability to Tax other than in relation to the
          Withholding Tax Claim, as defined in Schedule 4 Part 1. The Sellers

                                      109
<PAGE>

          shall be entitled to deal with and settle the Withholding Tax Claim in
          such manner as it thinks fit acting reasonably but shall not settle
          with the relevant Taxation Authority the amount of Tax payable
          pursuant thereto without the prior consent of the Buyer, such consent
          not to be unreasonably withheld or delayed and the Share Sellers shall
          keep the Buyer fully informed of all material correspondence with HMRC
          relating to the Withholding Tax Claim;

1.22      not materially amend or vary, waive or terminate any rights under any
          Contract with any purchaser of electricity or environmental
          attributes, or gas supplier (except for those agreements currently
          being amended of which the Buyer is aware at the date of this
          Agreement), the DSA's and contracts relating to the ROC Business
          Assets, contracts for spare parts, contracts with funders and
          contracts relating to the Property;

1.23      to the extent that the Share Sellers are aware of relevant legal
          requirements, comply with such legal requirements;

1.24      not make, or enter into any new Contract or incur any new legally
          binding commitment to make, any payments due under a DSA or a DA from
          any Group Member to a ROC Seller after the Effective Date;

1.25      not alter the memorandum or articles of association of any member of
          the Group nor adopt any articles of association nor pass any
          resolutions inconsistent the memorandum and articles of association in
          place at the date of this Agreement.

Part II - ROC Sellers Obligations

2.        Each of the ROC Sellers:

          (i)       confirm that, from the Effective Date to the date of this
                    Agreement, they have complied with paragraphs 2.1 to 2.3
                    (inclusive) below and for the purposes of this paragraph (i)
                    such provisions shall be deemed to be in the past tense; and

          (ii)      will immediately following the date of this Agreement and
                    pending Completion, in respect of the ROC Business Assets to
                    be sold by it pursuant to clause 3.1, except as required by
                    law or relevant authority or with the written consent of the
                    Buyer, such consent not to be unreasonably withheld or
                    delayed:

2.1       not assign, lease or dispose of any part of the ROC Business Assets
          owned by it save in the ordinary course of business;

2.2       not create an Encumbrance over the any of the ROC Business Assets
          owned by it; and

2.3       not accept any payments due under a DSA or DA from any Group Member
          after the Effective Date.

                                      110
<PAGE>

                                   SCHEDULE 9

                            Working Capital Statement

                                     Part 1

1.        Working Capital Statement

1.1       The Working Capital Statement will show the items set out in the
          proforma at Part 3 of this Schedule at the Effective Date and, in
          calculating the Working Capital, the following accounting principles,
          policies, bases, conventions, rules, practices and estimation
          techniques shall be applied in the following order of priority:

          1.1.1     in accordance with the specific accounting principles,
                    policies, bases, conventions, rules, practices and
                    estimation techniques set out in Part 2 of this Schedule;

          1.1.2     to the extent there is no conflict with paragraph 1.1.1
                    adopting the accounting principles, policies, bases,
                    conventions, rules, practices and estimation techniques
                    applied for the purposes of the Accounts; and

          1.1.3     to the extent there is no conflict with paragraphs 1.1.1 and
                    1.1.2 in accordance with Generally Accepted Accounting
                    Practices in the United Kingdom in force at the Accounting
                    Date.

          For the avoidance of doubt and notwithstanding any other provision of
          this Schedule 9 (other than paragraph 2.26 of this Schedule 9), in the
          preparation of the Working Capital Statement, the terms of paragraph
          1.1.1 shall take precedence over the terms of paragraphs 1.1.2 and
          1.1.3 and the provisions of paragraph 1.1.2 shall take precedence over
          paragraph 1.1.3.

1.2       For the avoidance of doubt and notwithstanding any other provision of
          this Schedule 9 (other than paragraphs 2.23, 2.25 and 2.26 of this
          Schedule 9), in preparing the Working Capital Statement, account shall
          be made for any Tax estimated to be due and payable (on a consolidated
          basis) by the Group in respect of the period up to and including the
          Effective Date but no account shall be taken of any other Tax,
          deferred tax asset or deferred tax liability.

1.3       The provisions of Parts 1 and 2 of this Schedule (and the other
          provisions of this Agreement) shall prevail over the proforma set out
          in Part 3 of this Schedule.

                                     Part 2

2.        Specific Accounting Policies

2.1       The Working Capital Statement for the Group shall be prepared on a
          consolidated basis. Except as specifically required elsewhere in this

                                      111
<PAGE>

          Schedule, the principles of consolidation shall be those applied in
          the consolidation of the Accounts.

2.2       Except as specifically required elsewhere in this Part 2, the balances
          included in the Working Capital Statement shall be calculated by
          reference to the nominal ledgers of each Group Member or ROC Seller
          (as the context requires) made up to the Effective Date.

2.3       Intercompany balances between Group Members shall be fully reconciled
          and eliminated and any residual debit balances written off.

2.4       The ROC Payable shall be fully reconciled to the ROC Receivable and
          any residual debit and credit balances written off.

2.5       No item or balance shall be included in the Working Capital Statement
          more than once, and the provisions of this Part 2 shall be interpreted
          so as to avoid any double-counting (whether positive or negative) of
          any item or balance to be included in the Working Capital Statement.

2.6       The Working Capital Statement shall be stated in Pounds Sterling. For
          this purposes any foreign currency balances shall be translated into
          Pounds Sterling at the mid-point "spot" exchange rates published in
          the London edition of the Financial Times (the "FT") on the day after
          the Effective Date. Should no FT be published on this day, reference
          shall be made to the first FT to be published thereafter.

2.7       Adjusting Events (as defined in FRS 21 "Events After the Balance Sheet
          Date") occurring after the Effective Date shall be taken into account
          in the Working Capital Statement until the date of delivery of the
          draft Working Capital Statement to the Buyer.

2.8       No asset which is in the nature of a fixed asset (including for the
          avoidance of doubt fixed asset investments, tangible or intangible
          fixed assets, and assets in the course of construction) or which was
          classified as a fixed asset in the Accounts or the 31 October 2006
          management accounts shall be included in the Working Capital
          Statement.

2.9       No materiality limits shall be applied in preparing the Working
          Capital Statement.

2.10      Cash per the nominal ledger(s) shall be fully reconciled to the bank
          statements or other applicable third party confirmation, and any
          unreconciled debit balances shall be written off.

2.11      Sales of electricity under offtake agreements (including revenue
          earned in relation to the associated Renewable Obligation
          Certificates) shall be accrued upon supply of the electricity to third
          parties. The sales value of such supply shall be calculated by

                                      112
<PAGE>

          reference to the latest available meter reading prior to the Effective
          Date and the relevant contractual unit price.

2.12      Revenue in relation to TRIAD benefits shall be recognised upon cash
          receipt or if earlier, formal written confirmation of entitlement from
          the relevant electricity supplier.

2.13      Provision shall be made for all receivables to the extent (a) a
          receivable is disputed by the counterparty, or (b) prior to the
          Effective Date, the counterparty enters or files for bankruptcy or
          administration or otherwise becomes insolvent, or (c) a credit note is
          issued after the Effective Date but before the date on which the
          Sellers deliver the draft Working Capital Statement to the Buyer in
          accordance with clause 5, or (d) with the exception of accrued revenue
          and amounts receivable in relation to Renewable Obligation
          Certificates and LECs, the receivables concerned are more than 90 days
          old.

2.14      Prepayments and deferred expenditure shall be recognised only to the
          extent they represent payment for goods and services which are of
          continuing value to the Group post Completion.

2.15      Amounts received or receivable in advance of revenue recognition will
          be accrued in the Working Capital Statement as deferred income.

2.16      Accrual shall be made for all goods and services received or
          receivable but not paid for as at the Effective Date. For this
          purpose, Royalties shall be accrued at the same point of time as the
          revenue to which they relate is recognised.

2.17      Accrual shall be made for all audit and accountancy fees and costs in
          relation to tax returns relating to the financial years ending on or
          before 31 December 2006.

2.18      Any proceeds received or receivable from the disposal of fixed assets
          (being those assets which are excluded from the calculation of the
          Working Capital) between 31 October 2006 and the Effective Date shall
          be deducted from Working Capital.

2.19      Insurance receivables shall be recognised to the extent cash or formal
          written confirmation of settlement has been received from the insurers
          by the date the draft Working Capital Statement is submitted to the
          Buyer by the Representative. Full provision shall be made for the cost
          of repairing or replacing any damaged assets.

2.20      Insurance receivables that relate to claims for loss of profits after
          the Effective Date shall be excluded from Working Capital.

                                      113
<PAGE>

2.21      All debt and borrowings shall be stated gross of any unamortised
          capitalised arrangement fees except that all costs and expenses
          associated or arising in connection with the termination of the Term
          Debt and the Hedging Arrangements shall be excluded.

2.22      The sum of (pound sterling)363,632.00 being the aggregate of loans
          made by the Company to certain Shareholders (which amount will be
          repaid at Completion in accordance with paragraph 8 of Schedule 5)
          will be included in Working Capital as a receivable.

2.23      The amounts of (pound sterling)5,349.60 and (pound sterling)1,418.24
          representing respectively the repayments (net of PAYE and employee's
          National Insurance Contributions) by each of Douglas Wilson and Randy
          Holmes of the bonus inadvertently paid to them and repaid to the
          Company on Completion in accordance with paragraph 7 of Schedule 5
          shall be included as a receivable.

2.24      The amount by which the Term Debt as at the Effective Date is a
          greater liability than (pound sterling)10,237,407.61 shall be included
          in Working Capital as a liability. The amount by which the Term Debt
          as at the Effective Date is a lesser liability than (pound
          sterling)10,237,407.61 shall be included in Working Capital as an
          asset.

2.25      (pound sterling)1,110,188, being the agreed (as between the parties)
          estimated amount of the Tax payable pursuant to the Withholding Tax
          Claim as defined in Schedule 4, shall be included as a liability in
          Working Capital.

2.26      The Bonus Amount (and all PAYE and employers and employees National
          Insurance Contributions in relation to such Bonus Amount) shall be
          excluded.

                                      114
<PAGE>

                                     Part 3

                       Working Capital Statement Pro-forma

Current Assets                        (pound sterling)
                                      ---------------------

                                      (pound sterling)

Current Liabilities                   (pound sterling)(            )

Debt                                  (pound sterling)(            )

Working Capital Liabilities           (pound sterling)(            )

Term Debt adjustment                  (pound sterling)
(being the amount derived             ---------------------
from paragraph 2.24 of
Schedule 9)

Working Capital                       (pound sterling)

ROC Receivable                        (pound sterling)

                                      115
<PAGE>

                                   SCHEDULE 10

                            Purchase Price Allocation

ROC 1 Assets:

<TABLE>
<CAPTION>

<S>                                                 <C>
ASSET                                               PURCHASE PRICE
(i) ROC 1 ROC Receivable                            (pound sterling)[AMOUNT AS AT EFFECTIVE DATE]
(ii) Estimated 2007 DSA and DA ROC 1                The amount to be estimated at Completion
 Accrual
(iii) Fixed Assets (representing tangible           (pound sterling)4,654,239
 moveable properties)                               ----------------------------------------------------
(iv) Goodwill (reflecting intangible and            Total for ROC 1 Assets minus the amounts referred to
 other contractual assets)                          at (i) to (iii) above
                                                    ----------------------------------------------------
Total                                               (pound sterling)15,414,893.62 (excluding the amounts at
                                                    (i) and (ii) above)
                                                    ----------------------------------------------------

ROC 2 Assets:

ASSET                                               PURCHASE PRICE
(i) ROC 2 ROC Receivable                            (pound sterling)[AMOUNT AS AT EFFECTIVE DATE]
(ii) Estimated 2007 DSA and DA ROC 2                The amount to be estimated at Completion
 Accrual
(iii) Fixed Assets (representing tangible           (pound sterling)7,712,754
 moveable properties)                               ----------------------------------------------------
(iv) Goodwill (reflecting intangible and other      Total for ROC 2 Assets minus the
 contractual assets)                                amounts referred to at (i) to (iii) above
                                                    ----------------------------------------------------
Total                                               (pound sterling)25,544,680.85  (excluding  the amounts at
                                                    (i) and (ii) above)
                                                    ----------------------------------------------------

ROC 3 Assets:

ASSET                                               PURCHASE PRICE
(i) ROC 3 ROC Receivable                            (pound sterling)[AMOUNT AS AT EFFECTIVE DATE]
(ii) Estimated 2007 DSA and DA ROC 3                The amount to be estimated at Completion
 Accrual
(iii) Fixed Assets (representing tangible           (pound sterling)8,643,623
 moveable properties)                               ----------------------------------------------------
(iv) Goodwill (reflecting intangible and other      Total for ROC 3 Assets minus the
 contractual assets)                                amounts referred toat (i) to (iii) above
                                                    ----------------------------------------------------
Total                                               (pound sterling)28,627,659.57  (excluding  the amounts at
                                                    (i) and (ii) above)
                                                    ----------------------------------------------------
</TABLE>

                                      116
<PAGE>

<TABLE>
<CAPTION>

ROC 4 Assets:

<S>                                                 <C>
ASSET                                               PURCHASE PRICE
(i) ROC 4 ROC Receivable                            (pound sterling)[AMOUNT AS AT EFFECTIVE DATE]
(ii) Estimated 2007 DSA and DA ROC 4                The amount to be estimated at Completion
 Accrual
(iii) Fixed Assets (representing tangible           (pound sterling)3,989,384
 moveable properties)                               ----------------------------------------------------
(iv) Goodwill (reflecting intangible and            Total for ROC 4 Assets minus the
other contractual assets)                           amounts referred to at (i) to (iii) above
                                                    ----------------------------------------------------
Total                                               (pound sterling)13,212,765.96  (excluding  the amounts at
                                                    (i) and (ii) above)
                                                    ----------------------------------------------------
</TABLE>

                                      117
<PAGE>

                                   SCHEDULE 11

                           The ROC Business Contracts

PART 1 - ROC 1

[OMITTED]

PART 2 - ROC 2

[OMITTED]

PART 3 - ROC 3

[OMITTED]

PART 4 - ROC 4

[OMITTED]

                                      118
<PAGE>

                                   SCHEDULE 12

                             The Plant and Equipment

PART 1 - ROC 1

[OMITTED]

PART 2 - ROC 2

[OMITTED]

PART 3 - ROC 3

[OMITTED]

PART 4 - ROC 4

[OMITTED]

                                      119
<PAGE>

                                   SCHEDULE 13

                                Project Companies

[OMITTED]

                                     120
<PAGE>

                                   SCHEDULE 14

      Adjustment to the Purchase Price a result in change of Interest Rates

The Purchase Price will be adjusted to reflect the effect of interest rate
changes between 7 December 2006 and the Completion Date, calculated based on the
following:

Interest Rate Adjustment Mechanism

--------------------------------------------------------------------------------
12 year Tullet Prebon rate(1)              Purchase Price Adjustment
                                                ((pound sterling)`000)23
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
(1.50) %                                              10,264
--------------------------------------------------------------------------------
(1.25) %                                               8,117
--------------------------------------------------------------------------------
(1.00) %                                               6,714
--------------------------------------------------------------------------------
(0.75) %                                               5,005
--------------------------------------------------------------------------------
(0.50) %                                               3,330
--------------------------------------------------------------------------------
(0.40) %                                               2,660
--------------------------------------------------------------------------------
(0.30) %                                               1,996
--------------------------------------------------------------------------------
(0.20) %                                               1,332
--------------------------------------------------------------------------------
(0.10) %                                                 666
--------------------------------------------------------------------------------
Bid Case Rate (4.81%) (Bid 7th Dec)                  120,000
--------------------------------------------------------------------------------
0.10 %                                                  (673)
--------------------------------------------------------------------------------
0.20 %                                                (1,345)
--------------------------------------------------------------------------------
0.30 %                                                (2,012)
--------------------------------------------------------------------------------
0.40 %                                                (2,673)
--------------------------------------------------------------------------------
0.50 %                                                (3,340)
--------------------------------------------------------------------------------
0.75 %                                                (4,997)
--------------------------------------------------------------------------------
1.00 %                                                (6,691)
--------------------------------------------------------------------------------
1.25 %                                                (8,187)
--------------------------------------------------------------------------------
1.50 %                                               (10,261)
--------------------------------------------------------------------------------

---------------------------------
(1)        12 year Tullet Prebon Rate as set at market close, Reuters Page
           TTKLINFP. The interest rate will be set based on the average of the
           Bid rate for the 12 year Tullet Prebon on the day preceding
           Completion. However, should on the day of completion, the Tullet
           Prebon open more than 10 basis points above the previous day's
           closing position, the pricing will be reset to reflect the trading as
           at 11:00am GMT of the day of completion.
(2)        Total adjustment to be applied to the Purchase Price
(3)        Values to be linearly interpolated for Tullett Prebon rates between
           the values stated

                                      121
<PAGE>

SIGNED by                                     )
duly authorised for and on behalf of          ) DOUGLAS R. WILSON
RIDGEWOOD UK LLC                              )
in the presence of: R. Franklin               )

Witness signature: RICHARD FRANKLIN

Name:

Address: 1 CALLAGHAN SQUARE, CARDIFF

Occupation: SOLICITOR

SIGNED by                                     )
duly authorised for and on behalf of          ) MARK BAKER
ARBUTUS ENERGY LIMITED                        ) RICHARD KEARSEY
in the presence of:                           )

Witness signature: SIOBHAN TOBIN

Name: SIOBHAN TOBIN

Address: CHARTER PLACE, 23/27 SEATON PLACE, ST HELIER, JERSEY

Occupation: MANAGER, TRUST COMPANY

SIGNED by                                     )
duly authorised for and on behalf of          ) DOUGLAS R. WILSON
RIDGEWOOD ROC 2003 LLC                        )
in the presence of:                           )

Witness signature: RICHARD FRANKLIN

Name:

Address: AS ABOVE

Occupation:

SIGNED by                                     )
duly authorised for and on behalf of          ) DOUGLAS R. WILSON
RIDGEWOOD ROC II 2003 LLC                     )
in the presence of:                           )

Witness signature: RICHARD FRANKLIN

Name:

Address: AS ABOVE

Occupation:

                                      122
<PAGE>

SIGNED by                                     )
duly authorised for and on behalf of          ) DOUGLAS R. WILSON
RIDGEWOOD ROC III 2003 LLC                    )
in the presence of:                           )

Witness signature: RICHARD FRANKLIN

Name: RICHARD FRANKLIN

Address: 1 CALLAGHAN SQUARE, CARDIFF

Occupation: SOLICITOR

SIGNED by                                     )
duly authorised for and on behalf of          ) DOUGLAS R. WILSON
RIDGEWOOD ROC IV 2004 LLC                     )
in the presence of:                           )

Witness signature: RICHARD FRANKLIN

Name:

Address: AS ABOVE

Occupation:

SIGNED by                                     )
duly authorised for and on behalf of          ) DAVID PAUL TILSTONE
MEIF LG ENERGY LIMITED                        )
in the presence of:                           )

Witness signature: RICHARD FRANKLIN

Name:

Address: AS ABOVE

Occupation:

                                      123
<PAGE>

                                   APPENDIX I

                              Long Term Liabilities

ING Lease (UK)                                (pound sterling)263 (excl vat)
(London franking machine)

GE Commercial Finance Equipment leasing       (pound sterling)1,995 (excl vat)
(Bolton franking machine)

CIT Vendor finance (UK) Limited               (pound sterling)2,647 (excl vat)
(Bolton photocopier)

Capital Bank                                  (pound sterling)29,500
(Vehicles)

Clarke Energy Limited                         (pound sterling)293,442 (total
(Jameson Road & Feltwell NFFO engines)        outstanding as at the Effective
                                              Date)

Deferred Income                               (pound sterling)  3,473,246

BoS Term Loan                                 (pound sterling)  8,668,156
(gross of (pound sterling)215,707 set up cost DR bal)

Deferred Tax                                  (pound sterling)    808,037

Other                                         (pound sterling)        243

PowerBank Finance Leases                      (pound sterling) 21,042,924

                                      124

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