Document:

EX-10.22

Exhibit 10.22

Power Purchase Contract

(Contract Number: De Dian Gu Si 2009-011)

Power Purchaser: Yunnan Dehong Electric Power Co., Ltd. 

Power Seller: Yunnan Huabang Electric Power Development Co., Ltd. 

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POWER PURCHASE CONTRACT

(Contract Number: 2009- )

	 	 	 	 	 	 	 
	CHAPTER I	 	DEFINITIONS AND INTERPRETATIONS
	 	 	4	 
	 	 	 
	 	 	 	 
	CHAPTER II	 	REPRESENTATIONS BY THE PARTIES
	 	 	8	 
	 	 	 
	 	 	 	 
	CHAPTER III	 	OBLIGATIONS OF THE PARTIES
	 	 	9	 
	 	 	 
	 	 	 	 
	CHAPTER IV	 	PURCHASE AND SALE OF THE ELECTRIC POWER
	 	 	11	 
	 	 	 
	 	 	 	 
	CHAPTER V	 	ON-GRID ELELCTRICITY TARIFF
	 	 	14	 
	 	 	 
	 	 	 	 
	CHAPTER VI	 	METERING OF ELECTRIC POWER
	 	 	14	 
	 	 	 
	 	 	 	 
	CHAPTER VII	 	CALCULATION OF ELECTRICITY OUTPUT
	 	 	18	 
	 	 	 
	 	 	 	 
	CHAPTER VIII	 	SETTLEMENT AND PAYMENT OF ELECTRICITY FEES
	 	 	19	 
	 	 	 
	 	 	 	 
	CHAPTER IX	 	FORCE MAJEURE
	 	 	23	 
	 	 	 
	 	 	 	 
	CHAPTER X	 	UNPLANNED OUTAGE
	 	 	25	 
	 	 	 
	 	 	 	 
	CHAPTER XI	 	LIABILITY FOR BREACH OF CONTRACT
	 	 	26	 
	 	 	 
	 	 	 	 
	CHAPTER XII	 	EFFECTIVINESS AND VALID TERM OF THIS CONTRACT
	 	 	27	 
	 	 	 
	 	 	 	 
	CHAPTER XIII	 	APPLICABLE LAW
	 	 	27	 
	 	 	 
	 	 	 	 
	CHAPTER XIV	 	AMENDMENT, ASSIGNMENT AND TERMINATION OF THIS CONTRACT
	 	 	27	 
	 	 	 
	 	 	 	 
	CHAPTER XV	 	DISPUTES RESOLUTION
	 	 	29	 
	 	 	 
	 	 	 	 
	CHAPTER XVI	 	MISCELLANEOUS
	 	 	29	 

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This Power Purchase Contract (hereinafter referred to as “this Contract”) was executed by
and between the following Parties:

Power Purchaser: Yunnan Dehong Electric Power Co., Ltd., a company conducting the
business of grid operation, which was registered and established with the Administration for
Industry and Commerce of Yunnan Province. It has procured the Power Transmission
Permit (number: Dian Bing—024) issued by the Power Regulatory Department of
Yunnan Province Economic and Trade Commission. Its Tax Registration Certificate
number is 533103713470352, the registered address is at No. 99, Central Section of
Mangshi Avenue, and the legal representative is Yue Zhiqiang.

Power Seller: Yunnan Huabang Electric Power Development Co., Ltd., a legal entity
conducting the business of power generation, which was registered and established with the
Administration for Industry and Commerce of Dehong Prefecture. It has procured the
Power Generation Permit (number: 1063008-00218) issued by the Power Regulatory
Department of Kunming City for the Power Plant (units) referred to in this Contract.
Its Tax Registration
Certificate number is 533123757168171, the registered address is at Xincheng
Township, Yingjiang County, and the legal representative is John D. Kuhns.

The mail address and bank account information provided by the Parties are set out as follows:

Name of Power Purchaser: Yunnan Dehong Electric Power Co., Ltd.

Addressee: Power Marketing Department

E-mail Address:                                                             

Telephone Number: 8893228     Facsimile Number: 8893228     Post Code: 678400

Mail Address:     No. 99, Central Section of Mangshi Avenue, Luxi City

Account Name:     Yunnan Dehong Electric Power Co., Ltd.

Opening Bank:     Agricultural Bank of China, Dehong Prefecture Branch

Account Number:     139801040001427

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Name of Power Seller: Yunnan Huabang Electric Power Development Co., Ltd.

Addressee:     Tong Weiwei

E-mail Address:                                                                 

Telephone Number: 0692-2127078     Facsimile Number: 0692-2127078     Zip Code: 678400

Mail Address: 4th Floor, No. 20 Baobo Road, Luxi City

Account Name: Yunnan Huabang Electric Power Development Co., Ltd.

Opening Bank: Agricultural Bank of China, Yingjiang County Sub-branch Chengguan Office

Account Number: 135601040001268

WHEREAS,

	(1)	 	The Power Seller is currently owning and operating the                      Power Plant
(hereinafter referred to as the “Power Plant”) with the installed capacity of                      KW in                     .
	 
	(2)	 	The Power Plant has been connected to the power grid operated and administrated by the
Power Purchaser.

After friendly consultations, on the principles of equality, free will and good faith, both
Parties hereto have reached this Contract in accordance with the Contract Law of the
People’s Republic of China, the Electric Power Law of the People’s Republic of China, the
Regulations on the Administration of the Dispatching of Power Grids and other relevant laws
and regulations of the People’s Republic of China.

CHAPTER I DEFINITIONS AND INTERPRETATIONS

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	1.1	 	Unless otherwise required by the context, the terms used in this Contract shall be
defined as follows:
	 
	1.1.1	 	“Power Plant” refers to the power generation facilities with all auxiliary facilities
stretching to the demarcation point of property rights with the installed capacity of [ ] KW
(the unit capacity is                      KW, with                     
installed units, namely,                      unit), which are owned
and
operated by the Power Seller and located in                     .
	 
	1.1.2	 	“Annual Actual On-grid Output” refers to the annual electricity output transmitted to
the Power Purchaser by the Power Seller at the Metering Point. The unit for metering the
electricity output is kwh.
	 
	1.1.3	 	“Annual Contractual On-grid Output” refers to the annual on-grid electricity
output stipulated in Article 4.1hereof.
	 
	1.1.4	 	“Annual (Monthly) Accumulated Electricity Purchase Output” refers to the
electricity purchase output stipulated in Article 4.4.1 hereof.
	 
	1.1.5	 	“On-grid Electricity Output during Commissioning Period” refers to the on-grid
electricity output generated by the Power Plant during the period between the initial grid
connection date of different generator units and the formal delivery for commercial
operation.
	 
	1.1.6	 	“Planned Outage” refers to the status of the generator units of the Power Plant during
the planned overhaul period, including the general overhaul, the repair, the public system
planned overhaul, and the holiday repairing and the elimination of defects during off-peak
period required by the Power Purchaser (power dispatching organization), etc. The permitted
Planned Outage hours for each generator unit of the Power Plant per year are set out in
Appendix III hereto.

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	1.1.7	 	“Unplanned Outage” refers to the unavailable condition of the generator units of the
Power Plant which are not during the Planned Outage period. Based on the urgency of outage,
the Unplanned Outage can be classified as the following five categories: (1) immediate
outage; (2) the outage which could be delayed for a short while but must exit within six
hours; (3) the outage which could be postponed over six hours but must exit within
seventy-two hours; (4) the outage which could be deferred over seventy-two hours but must
exit before the next Planned Outage; and (5) the prolonged outage which is exceeding the time
limit of the Planned Outage.
	 
	1.1.8	 	“Forced Outage” refers to the aforesaid (1), (2) and (3) categories of Unplanned
Outage in Article 1.1.7.
	 
	1.1.9	 	“Available Hours” refers to the hours for the units under available conditions, which
are the sum of service hours and reserve hours.
	 
	1.1.10	 	“Equivalent Unit Derated Outage Hours” refers to the outage hours calculated by
the nameplate capacity which are converted from the derated hours.
	 
	1.1.11	 	“Equivalent Available Factor” refers to the proportion of the difference between the
Available Hours and the Equivalent Unit Derated Outage Hours to the period hours.
In respect of                     , in the non-overhaul years is     days; and the Equivalent
Available Factors for other units are respectively                     .
	 
	1.1.12	 	“Equivalent Unplanned Outage Hours” refers to the sum of the Unplanned Outage
Hours and the unplanned Equivalent Unit Derated Outage Hours.
	 
	1.1.13	 	“Power Purchaser’s Reason” refers to the requirements or liabilities of the Power
Purchaser, including, without limitation, the liabilities of Power Purchaser for the
enlargement of accident due to its failure to comply with relevant national regulations and
standards, etc.

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	1.1.14	 	“Power Seller’s Reason” refers to the requirements or liabilities of the Power
Seller, including, without limitation, the liabilities of the Power Seller for the
enlargement of accident due to its failure to comply with relevant national regulations and
standards, etc.
	 
	1.1.15	 	“Metering Point” refers to the point where the electric power metering device is
installed indicated in the Appendix II hereto. Generally speaking, the Metering Point shall
be set at the demarcation point of property right of the Parties; in the event that the
metering devices cannot be installed at the demarcation point of property rights, the
installation place shall be determined by both Parties through consultation.
	 
	1.1.16	 	“Emergencies” refers to the accidents occurred to the power grid or material
accidents occurred to the power generation or power supply facilities; the grid frequency or
electric voltage exceeds the prescribed limit, the loading of the transmission and
transformation facilities is over the regulated amount, the power of trunk circuit exceeds
the specified stability limitation and other operational situations which threaten the
safety of the grid operation, may destroy the grid stability and eventually lead to the
collapse of the grid or even power interruption in a vast area.
	 
	1.1.17	 	“Technical Parameter” refers to the technical restrictive conditions for electric
power utilities (including the equipments of the Power Plant and the facilities for grid
connection) listed out in Appendix I hereto.
	 
	1.1.18	 	“Working Day” refers to the calendar days excluding statutory holidays and vacations.
In the event that the agreed payment date is not a Working Day, then the payment date shall
be correspondingly postponed to the next Working Day.
	 
	1.1.19	 	“Force Majeure” refers to the objective events which are unforeseen, unavoidable
and insurmountable, including volcano eruptions, tornados, tsunamis, snowstorms,

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	 	 	mudslide, landslide, flood, fire, failure of the water inflows to meet the designed
standards, earthquakes, typhoons, thunder and lightening, fog flash, etc. beyond the
designed standards, and nuclear radiation, wars, plagues and riots, etc.
	 
	1.2	 	Interpretations
	 
	1.2.1	 	All headings hereof are only for the convenience of reading and shall not affect the
interpretation of this Contract in any way.
	 
	1.2.2	 	The Appendices to this Contract shall have the same legal effect as the formal text of
this Contract.
	 
	1.2.3	 	Unless otherwise agreed by the Parties, this Contract shall have the same binding
force on the legitimate successors or assignees of the Parties.
	 
	 	 	In case of situations prescribed in the above Article, relevant obligors shall
fulfill requisite notification obligations and complete relevant legal procedures in
accordance with law.
	 
	1.2.4	 	Unless otherwise required by the context, the day, month and year referred to in this
Contract shall be the day, month and year of the Gregorian calendar.
	 
	1.2.5	 	The words “include”, “includes” or “including” shall mean including without
limitation.

CHAPTER II REPRESENTATIONS BY THE PARTIES

Any Party hereby represents to the other Party that:

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	2.1	 	It is an enterprise that has been duly established and validly and legally in existence
in accordance with law, and has the full right to enter into and the ability to perform this
Contract.
	 
	2.2	 	All procedures required for entering into and performing this Contract (including
procuring requisite governmental approvals, business license and power business permit,
etc.) have been accomplished and are legal and valid.
	 
	2.3	 	Upon entering into this Contract, no judgments, verdicts, awards or specific
administrative acts have been carried out by any courts, arbitration institutes,
administrative organs or other regulatory bodies that will have material adverse effect on
its performance of this Contract.
	 
	2.4	 	All internal authorization procedures required for executing this Contract have been
accomplished and this Contract is signed by its legal representative or authorized proxy.
This Contract shall have the binding force on both Parties of this Contract after it comes
into effect.

CHAPTER III OBLIGATIONS OF THE PARTIES

	3.1	 	The Power Purchaser’s obligations shall include the following:
	 
	3.1.1	 	To purchase the electric power generated by the Power Plant of the Power Seller in
accordance with the provisions of this Contract.
	 
	3.1.2	 	To abide by the Grid Connection and Dispatching Agreement entered into by the Parties,
operate and maintain the power transmission and transformation facilities in accordance with
relevant national standards and electric power industrial standards, and maintain the
safety, high
quality and economic operation of the electric power system.

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	3.1.3	 	To dispatch the electric power and disclose information publicly, justly and fairly
according to relevant regulations of the State and to provide information relating to the
power load, reserved capacity and operational conditions of power transmission and
transformation facilities, etc.
	 
	3.1.4	 	To provide electric power to the Power Seller for restarting the generator units of the
Power Plant according to relevant national regulations or mutual agreements.
	 
	3.1.5	 	To compensate the Power Seller for the reasonable fees arising from the paid assistant
services provided by the Power Seller upon the request of the Power Purchaser according to
relevant national regulations.
	 
	3.2	 	The Power Seller’s obligations shall include the following:
	 
	3.2.1	 	To sell to the Power Purchaser the electric power that satisfies the national
standards and the electric power industrial standards in accordance with the provisions of
this Contract.
	 
	3.2.2	 	To abide by the Grid Connection and Dispatching Agreement entered into by the Parties,
comply with the unified dispatch of electric power, operate and maintain the Power Plant
according to national standards, the electric power industrial standards and the dispatching
codes, ensure the operational abilities of the power generation units satisfy the technical
standards and rules issued by relevant departments of the State, and maintain the safety,
high quality and economic operation of the electric power system.
	 
	3.2.3	 	To provide the Power Purchaser with the reliability index and the operational
conditions for the units of the Power Plant on a monthly basis, provide information

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	 	 	concerning the defects of facilities in a timely fashion, regularly provide the
overhaul plan for the units of the Power Plant, and strictly implement the overhaul
plan for the generator units of the Power Plant which has been comprehensively
arranged and balanced by the Power Purchaser and determined by the Parties through
consultations.
	 
	3.2.4	 	To compensate the Power Purchaser for the reasonable fees arising from the paid
assistant services provided by the Power Purchaser upon its request according to relevant
national regulations.
	 
	3.2.5	 	Not to conduct the business of supplying power directly to the consumers without the
approvals from relevant authorities of the State.

CHAPTER IV PURCHASE AND SALE OF THE ELECTRIC POWER

	4.1	 	Annual Contractual On-grid Electricity Output: the Annual Contractual On-grid
Electricity Output shall be determined in the supplemental agreement through consultations.
	 
	4.2	 	Equivalent Available Factor: shall be determined in the annual supplemental
agreement.
	 
	4.3	 	The Allowable Deviation for Actual Electricity Generation Power
	 
	 	 	During any period of time, the allowable deviation range between the actual
electricity generation power of the Power Plant and the power determined by the
daily electricity generation dispatching plan curve (including the interim
adjustment curve) released by the electric power dispatching agency shall be: from
negative 3% to positive 3%.

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	4.4	 	Accumulated Electricity Purchase Output and Surplus or Deficiency of
Electricity Purchase Output
	 
	4.4.1	 	The sum of annual (monthly) electricity output generated by the output within the
allowable deviation range prescribed in Article 4.3 of the Power Plant’s units and the
electricity output generated by the output beyond the allowable deviation range prescribed
in Article 4.3 due to Power Purchaser’s Reason, plus the electricity output generated by the
output of the Power Plant’s units on other conditions which conform to the requirements of
the dispatching instructions equals to the Annual (Monthly) Accumulated Electricity Purchase
Output. The difference between the Annual (Monthly) Accumulated Electricity Purchase Output
and the Annual (Monthly) Contract On-grid Electricity Output shall be the annual (monthly)
surplus or deficient electricity purchase output of the Power Purchaser.
	 
	4.4.2	 	Annual (Monthly) Accumulated Electricity Purchase Output shall be settled
according to the on-grid tariff prescribed in Article 5.2 hereof.
	 
	4.4.3	 	At the end of each contract year, in the event that the Annual Accumulated Electricity
Purchase Output of the Power Purchaser is less than the Annual Contractual On-grid
Electricity Output, the Power Purchaser shall pay the liquidated damages to the Power Seller
for the deficiency of Annual Electricity Purchase Output according to the result calculated
by the following formula:
	 
	 	 	The Deficiency of Annual Electricity Purchase Output=Annual Contractual
On-grid Electricity Output — Annual Accumulated Electricity Purchase Output — The
Deficiency of Electricity Generation Output of that year due to Force Majeure
occurred to the Power Seller—The Deficiency of Electricity Generation Output of
that year due to the Breach of Contract of the Power Seller

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	 	 	[Wherein: Accumulated Electricity Purchase Output=Actual On-grid Output—The
Surplus of Electricity Generation Output due to the Breach of Contract of the Power
Seller]
	 
	 	 	Liquidated Damages for the Deficiency of Annual Electricity Purchase Output
=The Deficiency of Annual Electricity Purchase OutputXThe On-grid Tariff approved
by the Local Price Regulatory Authority
	 
	4.5	 	The Surplus or Deficiency of Electricity Generation Output due to Breach of Contract
	 
	4.5.1	 	At any period of time, in the event that the Power Seller violates the dispatching
instructions to generate electricity or fail to generate electricity, or violates the
dispatching instructions to generate electricity on the condition exceeding the allowable
deviation range, the incurred surplus or deficient electricity generation output shall be
the surplus or deficiency of electricity generation output of the Power Seller due to breach
of contract. The surplus or deficiency of electricity generation output due to breach of
contract shall be caused by the following three conditions: (1) the surplus or deficiency of
electricity generation output caused by the Power Seller’s unauthorized start-up or
shut-down of the units without the consent of the Power Purchaser; (2) the surplus or
deficiency of electricity generation output caused by the electricity generation by the
Power Plant on the condition exceeding the allowable deviation range prescribed in Article
4.3 which has been warned by the Power Purchaser, or by the continuous electricity
generation on the condition exceeding the allowable deviation range prescribed in Article
4.3 for over five (5) minutes; (3) the surplus or deficiency of electricity generation
output due to the Power Seller’s failure to perform the dispatching instructions of reducing
or adding the unit output under Emergencies.
	 
	4.5.2	 	The Power Purchaser shall not settle the surplus electricity generation output due to
the breach of contract of the Power Seller; in the meanwhile, the Power Seller shall

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	 	 	pay to the Power Purchaser the liquidated damages for the surplus electricity
generation output.
	 
	 	 	Liquidated Damages for Annual Surplus Electricity Generation Output=The Annual
Surplus Electricity Generation Output due to Breach of ContractXThe On-grid
Electricity Tariff approved by Local Price Regulatory AuthorityX2
	 
	4.5.3	 	The deficient electricity generation output due to breach of contract of the Power
Seller shall be deducted as Unplanned Outage; in the meanwhile, the Power Seller shall pay
the Power Purchaser the liquidated damages for the deficient electricity generation output.
	 
	 	 	Liquidated Damages for Annual Deficient Electricity Generation Output=The Annual
Deficient Electricity Generation Output due to Breach of ContractXThe On-grid
Electricity Tariff approved by Local Price Regulatory Authority
	 
	4.5.4	 	The Power Seller’s violations of the dispatching instructions shall be punished in
accordance with the provisions of relevant laws and regulations and the stipulations of the
Grid Connection and Dispatching Agreement.

CHAPTER V ON-GRID ELELCTRICITY TARIFF

	5.1	 	On-grid electricity tariff during the commissioning period shall be determined in the
Annual Supplemental Agreement.

CHAPTER VI METERING OF ELECTRIC POWER

	6.1	 	Metering Point

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	 	 	The Metering Points for metering and recording the on-grid electricity output and
from-grid electricity output shall be installed at the following points (details of which
are set out in Appendix II):

	 	a)	 	                                                            ;
	 
	 	b)	 	                                                            ;
	 
	 	c)	 	                                                            .

	6.2	 	Metering Devices for Electric Power and Relevant Equipments
	 
	6.2.1	 	Metering devices include, without limitation, the energy meters, metering voltage
transformer, current transformer, secondary circuit and electric power metering box/tank,
etc.
	 
	6.2.2	 	Metering devices shall be installed and allocated in accordance with the Technical
Administration Code of Electric Power Metering (DL / T448-2000). No auxiliary junction
points of isolating switch shall be installed in the secondary circuit of voltage
transformer, and no types of voltage compensation devices shall be connected thereto.
	 
	6.2.3	 	Energy meters shall be selected from the static multifunctional meters, the technical
performances of which shall conform to the requirements of the Multifunction Energy Meters
(DL / T 614-1997). The energy meters shall be equipped with standard communication interface
and the functions of no-voltage recorder and no-voltage timing, time-matching and incidents
recording, and shall have the local data communication and (or through the remote terminal
of electric power ) remote transmission functions, which shall be connected to the Power
Purchaser’s management system for the master station of electric power. In addition, the
energy meters shall have the daily load curve recording function, support network
communications, be of good compatibilities, and have sufficient safety precautions to
prevent the access of unauthorized persons.

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	6.2.4	 	The metering devices shall be installed by Dehong Jincheng Electric Power Metering
Devices Testing Technology Co., Ltd. (hereinafter referred to as “Jincheng Company”), which
has been authorized by the Quality and Technical Supervision Bureau of Dehong Prefecture and
commissioned by both Parties, in accordance with the requirements before the grid connection
of the Power Plant. Before the metering devices are put into operation, the Parties hereto
shall carry out the completion acceptance of the metering devices according to the
requirements of the Technical Administration Code of Electric Power Metering (DL /
T448-2000). As for those metering devices which have already been put into operation,
Jincheng Company shall carry out technical recognition of the technical performances and
management conditions of the metering devices with reference to the requirements of this
Article. As for those aspects which fail to satisfy the requirements, both Parties shall
reach an agreement through consultation and accomplish the transformation within a
specific period.
	 
	6.2.5	 	A set of energy meters with the same model, specification and accuracy shall be
installed at each Metering Point.
	 
	6.2.6	 	At the Metering Point where the on-grid electricity output and the from-gird
electricity output are simultaneously metered, the energy meters for metering the on-grid
electricity output and the from-grid electricity output shall be respectively installed and
shall satisfy the requirements set out in Article 6.2.3.
	 
	6.2.7	 	The metering devices shall be tested and sealed with strip seals, stamps or other
measures
for seal by Jincheng Company. Neither Party shall arbitrarily unseal the metering devices,
change the metering devices for electric power, the interconnection lines between the
metering devices or replace the components of the metering devices.
In the event that any Party proposes the technology development, the transformation
plan must be approved by the other Party and the transformation must be carried out

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	 	 	with both Parties at presence, which shall not be put into use until having passed the
completion acceptance as required in Article 6.2.4.
	 
	6.3	 	The Power Seller shall purchase the metering devices for metering the on-grid
electricity output and the from-grid electricity output on its own expenses, and shall be
responsible for the daily management and maintenance of the metering devices.
	 
	6.4	 	Checking of Metering Devices
	 
	6.4.1	 	The defaults inspections and periodical checking for metering devices shall be carried
out by Jincheng Company with both Parties at presence. Any expenses and fees arising
therefrom shall be borne by the Power Seller.
	 
	6.4.2	 	Besides the periodical checks, either Party may require at any time for checking or
testing the metering devices, which shall be carried out by Jingcheng Company. After being
checked or tested, in the event that the error of the metering devices cannot reach the
prescribed accuracy, the expenses and fees arising therefrom shall be borne by the Party who
proposes the checking or testing.
	 
	6.5	 	Treatment of Metering Abnormities
	 
	 	 	In the event any Party hereto detects the abnormities or malfunctions of the
metering devices which consequently affect the metering of electric power, such
Party shall immediately inform the other Party and Jincheng Company to jointly
analyze the problems so as to resume the normal metering as soon as possible. Under
normal circumstances, the settlement of electricity output shall be based on the
data recorded on the main meters at trade settlement metering point. In case of
abnormities of the trade settlement metering point, as for other abnormities, both
Parties shall, after thorough consultations, determine the electricity output during
the abnormal period

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	 	 	according to the information provided by the no-voltage recorder, no-voltage timing
device and other equipments.

CHAPTER VII CALCULATION OF ELECTRICITY OUTPUT

	7.1	 	The on-grid electricity output and from-grid electricity output shall be settled on a
monthly basis so as to realize the daily recording, monthly settlement and clearing at the
end of each year. The electricity output for settlement shall be read from the energy meters
at the Metering Point at twenty four o’clock of Beijing time on the last day of each month,
which shall be confirmed by both Parties. In case the matters relating to the calculation of
from-grid electricity output are stipulated in the Power Supply and Use Contract, the
stipulations of such
contract shall be followed.
	 
	7.2	 	Reading and Recording of the Data for Electricity Output Settlement
	 
	7.2.1	 	On site reading and recording of the data for electricity output settlement. Before
the operation of the Power Purchaser’s remote terminal of electric power, the data for
electricity output settlement shall be the data carried on the meters at twenty four o’clock
referred to in Article 7.1 which has been set up by taking advantage of the frozen function
of the energy meters, which shall be agreed by the staff of both Parties to read and record
on site on the next day.
	 
	7.3	 	Calculation of Electricity Output
	 
	7.3.1	 	On-grid Electricity Output
	 
	 	 	The on-grid electricity output shall be the aggregated output of all electricity
output (positive direction) delivered from the Power Plant’s units to the Power
Purchaser and read at the Metering Point stipulated in Article 6.1.

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	7.3.2	 	From-Grid Electricity Output
	 
	 	 	The from-grid electricity output shall be the electricity output delivered from the
power grid to the Power Plant during the commissioning period before the startup of
the Power Plant or when all units of the Power Plant stop operation due to its own
reasons. The from-grid electricity output shall be the accumulated output of all
electricity input (negative direction) read at the Metering Point stipulated in
Article 6.1 and all electricity input of startup/standby transformers.
	 
	7.4	 	Power Factor
	 
	 	 	After calculating the on-grid reactive electricity output, in the event that the
power factor is over 0.8, it will be deemed as reactive insufficiency. The Power
Seller shall pay to the Power Purchaser the reactive compensation electricity fees
for the reactive insufficiency.
	 
	7.5	 	The on-grid electricity output and the from-grid electricity output shall be calculated
separately and shall not be offset with each other.

CHAPTER VIII SETTLEMENT AND PAYMENT OF ELECTRICITY FEES

	8.1	 	Calculation of Electricity Fees
	 
	8.1.1	 	The electricity fees shall be settled in RMB.
	 
	8.1.2	 	The on-grid electricity fees
shall be calculated by the following formulas:
	 
	 	 	On-grid Electricity Fees=Accumulated
Electricity Purchase OutputXCorresponding

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	 	 	On-grid Electricity Tariff ( Inc. Tax)
	 
	 	 	Reactive Electricity Fees=Reactive Insufficient Electricity OutputXCorresponding
	 
	 	 	Reactive Compensation Electricity Tariff (Inc. Tax)
	 
	8.2	 	Settlement of Electricity Fees
	 
	8.2.1	 	After having completed the readings of the energy meters according to Article 7.2, the
Power Seller shall accurately calculate the on-grid electricity output and the electricity
fees in accordance with the reading records, fill in the Electricity Output Settlement Sheet
and the Electricity Fees Billing Sheet, and send the facsimiles of them to the Power
Purchaser on the same day or on the next Working Day, and the originals shall be sent as an
express mail on the same day.
	 
	8.2.2	 	After having received the Electricity Output Settlement Sheet and Electricity Fees
Billing Sheet sent by the Power Seller, the Power Purchaser shall check and confirm them as
soon as possible; in case of any dissidence, the Power Purchaser shall inform the Power
Seller within six (6) Working Days after having received the facsimiles.
After being amended by the Parties through consultation, the amended Electricity
Output Settlement Sheet and Electricity Fees Billing Sheet shall be sent to the
Power Purchaser through facsimiles by the Power Seller and the originals of them
shall be sent as an express mail on the same day. In the event that the Power
Purchaser fails to inform the Power Seller of any dissidence within six (6) Working
Days after having received the facsimiles, they shall be deemed as having been
confirmed with no dissidence.
	 
	8.2.3	 	The Power Seller shall endorse the value added tax invoice based on the Electricity
Fees Billing Sheet which has been confirmed by the Power Purchaser, and deliver such invoice
to the Power Purchaser. After having received the confirmed originals of the Electricity
Output Settlement Sheet, Electricity Fees Billing Sheet and value

20

 

	 	 	added tax invoice, the Power Purchaser shall pay off the on-grid electricity fees of
that period in two installments: (1) within fifteen (15) Working Days after having
received the aforesaid originals, the Power Purchaser shall pay for 50% of the
on-grid electricity fees of that period; (2) within thirty (30) Working Days after
having received the aforesaid originals, the Power Purchaser shall pay off the rest
50% of the on-grid electricity fees of that period.
	 
	 	 	In the event the Power Purchaser fails to pay off the on-grid electricity fees
within the prescribed time limit for any reason, through mutual consultations, the
portion of the postponed payment prescribed herein shall be charged with liquidated
damages according to the bank loan interest rate within the corresponding period.
The overdue days shall be counted from the next day of the deadline for the payment
of the second installment.
	 
	8.3	 	Electricity Fees Payment for the On-grid Electricity Output during the
Commissioning Period
	 
	 	 	After the unit commissioning period for the Power Plant’s units is over, the Power
Purchaser shall pay the electricity fees for the on-grid electricity output during
the commissioning period within thirty (30) Working Days. The detailed payment
methods and stipulations shall refer to Article 8.2.
	 
	8.4	 	Calculation and Payment for the Paid Auxiliary Service Fees
	 
	 	 	Matters concerning the calculation and payment for the fees of the paid auxiliary
service provided by the Power Purchaser’s power grid or the Power Seller’s Power
Plant shall be carried out by both Parties according to relevant national
regulations. Before the formal implementation of relevant national regulations, the
existing measures shall be followed.

21

 

	8.5	 	Electricity Fees Payment for the Difference Adjustment between the Temporary
Electricity Tariff and Approved Electricity Tariff
	 
	 	 	As for the difference between the temporary electricity tariff and the approved
electricity tariff, in light of the stipulations of Article 5.3 hereof and the
regulations of relevant approvals, the Parties hereto shall, within thirty (30)
Working Days after the difference of such tariff has been confirmed by the Parties,
complete the settlement of the electricity fees, and refund the overpayment or
supplement the shortfall.
	 
	8.6	 	Electricity Fees Payment for the Metering Errors Adjustment
	 
	 	 	According to the stipulations of Article 6.5 hereof, in the event that the Power
Purchaser needs to increase the payment to the Power Seller or the Power Seller
needs to refund the payment to the Power Purchaser due to metering errors, the
increased or refunded payment shall be settled together with the electricity fees of
the next month upon the written agreement concluded by the Parties.
	 
	8.7	 	Payment for the From-grid Electricity Fees
	 
	 	 	The electricity fees for the from-grid electricity output defined in Article 7.3.2
hereof shall be calculated by the electricity retail tariff which has been approved
by the local price regulatory authority, and shall be paid by the Power Plant within
the first ten (10) days of the next month.
	 
	8.8	 	Yearly Clearing for Liquidated Damages and Compensation Fees
	 
	 	 	As for those liquidated damages or compensation fees which fail to be settled at
each month, the Parties hereto shall finish the clearing for the unsettled
liquidated damages or compensation fees of the previous year before the end of
January of the following year.

22

 

	8.9	 	Payment Method
	 
	 	 	Any payment which shall be paid by any Party hereto according to this Contract shall
be directly remitted to the bank account provided by the receiving Party in this
Contract. In case the receiving Party has noticed the other Party in writing about
the alteration of its opening bank or bank account, the aforesaid payments shall be
remitted to the changed bank account.
	 
	 	 	The bank account indicated in the value added tax special invoice of the receiving
Party shall be consistent with the bank account provided in this Contract or the
changed one upon written notice.
	 
	8.10	 	Materials and Records
	 
	 	 	Both Parties agree to keep their original materials and records respectively so as
to facilitate the reasonable checking of the statements, records examination or
inspection and check of the accuracy of calculations in accordance with this
Contract.

CHAPTER IX FORCE MAJEURE

	9.1	 	If the occurrence of any Force Majeure event completely or partially impedes one Party
from fulfilling any obligation under this Contract, such Party may be exempted from or
postponed to perform its contractual obligations, provided that:

	 	(1)	 	The scope and period for the exempted or delayed performance shall not exceed
the reasonable need for the elimination of impact of the Force Majeure;

23

 

	 	 (2)	 	The Party affected by the Force Majeure shall continue to perform its other
obligations under this Contract which are not affected by the Force Majeure,
including the obligation to make all due payment;
	 
	 	 (3)	 	In case the Force Majeure events come to an end, the Party affected by Force
Majeure shall resume the performance of this Contract as soon as possible.

	9.2	 	In the event that any Party is unable to perform this Contract due to Force Majeure,
such Party shall promptly inform the other Party, and shall send a written notice to the
other Party within three (3) days thereafter. Such written notice shall indicate the date
of the occurrence of Force Majeure, the anticipated duration, the nature of the events, the
impact on its performance of this Contract and the measures it has taken to mitigate the
impact of such Force Majeure events.
	 
	 	 	Upon the other Party’s request, the Party affected by the Force Majeure shall
furnish the other Party with an evidential document issued by the competent local
notary public where the Force Majeure event occurs within fifteen (15) days
commencing from the date when the Force Majeure event occurs (in the event of
communication interruption, from the restoration date of the communication).
	 
	9.3	 	The Parties affected by the Force Majeure shall take reasonable measures to mitigate
the losses incurred by one or both Parties caused by Force Majeure. The Parties shall
immediately consult with each other to formulate and implement a remedy plan and reasonable
alternative measures to minimize or eliminate the consequences of Force Majeure.
	 
	 	 	In the event the Party affected by Force Majeure fails to use all its reasonable
endeavors to mitigate the consequences of Force Majeure, that Party shall be
responsible for the enlarged losses arising therefrom.

24

 

	9.4	 	In the event that the Force Majeure has prevented a Party from performing its
obligations under this Contract for a continuous period of over twenty (20) days, the
Parties hereto shall consult with each other to determine the conditions for continuing the
performance of this Contract or to terminate this Contract. If the Parties hereto fail to
reach agreement concerning the conditions for continuing the performance of this Contract or
the termination of this Contract within thirty (30) days after the occurrence of the Force
Majeure, any Party shall be entitled to terminate this Contract with a notice to the other
Party, unless otherwise provided herein.
	 
	9.5	 	In the event that the Power Seller or the Power Purchaser fails to accomplish the power
sale or purchase obligations under this Contract due to governmental actions, change of laws
or substantial change of power markets, the Parties hereto shall consult with each other to
resolve the issues on the principle of fairness and reasonableness. The Parties may properly
amend this Contract if necessary.

CHAPTER X UNPLANNED OUTAGE

	10.1	 	Both Parties agree that, the annual allowable accumulated Equivalent Unplanned Outage
Hours due to Power Seller’s Reason of the current year shall be              hours. In the event
the actual annual accumulated Equivalent Unplanned Outage Hours of the Power Plant exceeds
the annual allowable hours due to Power Seller’s Reason, the settlement electricity output
of that month shall be deducted of a certain amount of the electricity output which is the
nameplate capacity multiplied by the excess hours.
	 
	10.2	 	Both Parties agree that, during the Unplanned Outage period of the units of the Power
Plant of that year due to Power Seller’s Reason, the allowable times for Forced Outage shall
be              times. In the event that the actual annual accumulated Forced Outage times of that
year exceeds the annual allowable Forced Outage times of the units of the Power Plant due to
Power Seller’s Reason, for each excess time, the

25

 

	 	 	settlement electricity output of that month shall be deducted of a certain amount of
electricity output which is the nameplate capacity multiplied by two (2) hours.
	 
	10.3	 	As for those deficient electricity purchase output caused by the Unplanned Outage
(including the unplanned derated outage) due to Power Purchaser’s Reason, the provisions of
Article 4.4.3 shall be followed.
	 
	10.4	 	In case of Forced Outage due to Power Purchaser’s Reason, for each time of outage, the
electricity output calculated from the nameplate capacity multiplied by one (1) hour shall
be added into the Annual Contractual On-grid Electricity Output of that year.

CHAPTER XI LIABILITY FOR BREACH OF CONTRACT

	11.1	 	Any Party’s violation of the provisions of this Contract shall be deemed as a breach of
contract, and the other Party shall be entitled to require the breaching Party to compensate
its economic losses arising from the breach of contract.
	 
	11.2	 	Besides the stipulations provided in other Chapters hereof, both Parties agree that the
liabilities for breach of contract which shall be born by the Power Purchaser shall also
include the following:                                        .
	 
	11.3	 	Besides the stipulations provided in other Chapters hereof, both Parties agree that the
liabilities for breach of contract which shall be born by the Power Seller shall also
include the following:                                        .
	 
	11.4	 	In case of any breach of contract, the non-defaulting Party shall immediately inform
the defaulting Party to stop the breach of contract, and send to the defaulting Party a
written notice as soon as possible to require it to correct the breach of contract and

26

 

	 	 	pay liquidated damages according to this Contract. The defaulting Party shall
immediately take measures to correct its defaulting acts and confirm its violations,
pay liquidated damages or compensate the losses of the other Party according to the
provisions of this Contract.
	 
	11.5	 	Before the expiration of the performance term provided in this Contract, in the event
that any Party clearly expresses or indicates by its behaviors that it will not fulfill its
contractual obligations, the other Party may require that Party to assume liabilities for
breach of contract.

CHAPTER XII EFFECTIVINESS AND VALID TERM OF THIS CONTRACT

	12.1	 	This Contract shall come into effect when it has been signed by the legal
representatives or authorized proxies of both Parties and affixed with the official stamps,
and upon the effectiveness of the Grid Connection and Dispatching Agreement.

CHAPTER XIII APPLICABLE LAW

	13.1	 	The formation, effectiveness, interpretation, performance and dispute resolution shall
be governed by the laws of the People’s Republic of China.

CHAPTER XIV AMENDMENT, ASSIGNMENT AND TERMINATION OF THIS CONTRACT

	14.1	 	Any alteration, amendment or supplement to this Contract shall be conducted in written
form, and the effectiveness for each of them shall be subject to the provisions of Article
12.1.

27

 

	14.2	 	The Power Seller and the Power Purchaser expressly agree that, without the other
Party’s prior written consent, they shall not have the right to assign to any third Party
all or part of their rights or obligations under this Contract.
	 
	14.3	 	Within the valid term of this Contract, the Parties hereto agree to adjust or amend this
Contract under any of the following conditions:

	 	a)	 	relevant laws, regulations, rules or polices of China are amended;
	 
	 	b)	 	relevant rules, measures or regulations, etc. are promulgated and implemented
by the State power regulatory agency;
	 
	 	c)	 	other circumstances agreed by the Parties:                                         .

	14.4	 	Termination of Contract
	 
	 	 	In the event that any of the following events occurs to any Party, the other Party
shall
be entitled to terminate this Contract                      days after serving a notice of
termination:

	 	(1)	 	bankruptcy or liquidation of any Party, or the business license or power
business permit of any Party or the Power Plant is revoked;
	 
	 	(2)	 	any Party merged with any other party and all or majority part of its assets
have been transferred to another entity, and the existing enterprise cannot assume
its all obligations under this Contract;
	 
	 	(3)	 	the Grid Connection and Dispatching Agreement entered into by and between
the Parties is terminated;

28

 

	 	(4)	 	Due to Power Seller’s Reason, the Power Plant’s generator units fail to safely
generate and transmit power in accordance with the requirements of this Contract for
a continued period of twenty (20) days;
	 
	 	(5)	 	Due to Power Purchaser’s Reason, the Power Purchaser fails to accept the power
in accordance with the requirements of this Contract for a continued period of
twenty (20) days;
	 
	 	(6)	 	Other events agreed by the Parties for the termination of this Contract:                     

CHAPTER XV DISPUTE RESOLUTION

	15.1	 	Any dispute arising out of the performance of this Contract and in relation to this
Contract shall be firstly resolved by the Parties through consultations, or may be submitted
to the power regulatory authority for mediation. In the event that such dispute cannot be
resolved through consultation or mediation, the Parties shall choose Item (2) below for
resolution:

	 	(1)	 	The Parties agree to submit the dispute to the Arbitration Committee of Dehong
Prefecture for arbitration in accordance with its then prevailing arbitration rules.
The arbitration award shall be final and legally binding upon the Parties hereto.
	 
	 	(2)	 	Any Party may bring lawsuit to the people’s court with competent jurisdiction.

CHAPTER XVI MISCELLANEOUS

	16.1	 	Confidentiality

29

 

	 	 	Both Parties warrant that they will keep confidential the materials and documents
which are procured from the other Party and cannot be procured through public
channels. Without the prior approval from the original provider of such materials
and documents, the other Party shall not disclose to any third party all or part of
the materials and documents, unless otherwise provided by the State.
	 
	16.2	 	Appendices
	 
	 	 	Appendix I:     Major Technical Parameters of the Power Plant
	 
	 	 	Appendix II:    Diagram for the Main Wiring and Metering Points of the Power Plant
	 
	 	 	Appendix III:   The Annual Allowable Planned Outage Hours for Each Generator Unit of
the Power Plant
	 
	 	 	The Appendices to this Contract shall constitute an integral part of this Contract,
and shall have the same legal effect as this Contract. In case of any discrepancies
between this Contract and its appendices, according to the nature of the
discrepancy, the content which has the closest connection with and deeper
understanding of the discrepancy shall firstly prevail. In the event that the
discrepancies or conflicts still exist after the aforesaid principle is adopted, the
Parties shall, on the principle of good faith, consult with each other to resolve
them according to the purpose of this Contract.
	 
	16.3	 	Entire Agreement
	 
	 	 	This Contract and its appendices constitute the entire agreement of both Parties to
this Contract pertaining to the transaction agreed upon in this Contract, and shall
replace all previous discussions, negotiations, agreements and contracts between
both Parties in respect of the transaction of this Contract.
	 
	16.4	 	Notification and Service

30

 

	 	 	Any notification, document and legal bills pertaining to this Contract shall be
conducted in written form. Documents delivered by registered letter, express mail or
designated person shall be deemed as having been served after being signed and
confirmed by the recipient; if sent by facsimile, the documents shall be deemed as
having been served after those documents have been received. All notifications,
documents and legal bills shall not come into effect until they are served or
received. All notifications, bills, materials and documents shall be sent to the
addresses provided in this Contract, unless the other Party sends a written notice
to change its address.
	 
	16.5	 	Other issues agreed by the Parties:                                         
	 
	16.6	 	Text
	 
	 	 	This Contract comprises twenty (20) pages, and shall be signed in four (4)
counterparts. Each Party shall hold one (1) copy and the rest two (2) copies shall
be filed with the local power regulatory authority for record.

31

 

POWER PURCHASER: YUNNAN DEHONG ELECTRIC POWER CO., LTD.

(Stamp)

Legal Representative: Yue Zhiqiang

Authorized Proxy:

POWER SELLER: YUNNAN HUABANG ELECTRIC POWER DEVELOPMENT CO., LTD.

(Stamp)

Legal Representative:

Authorized Proxy:

Signing Date: June 19, 2009

Signing Place: Mangshi

32EX-10.23

Exhibit 10.23

SUPPLEMENTAL AGREEMENT

TO

POWER PURCHASE AND SALE CONTRACT

FOR

THE YEAR OF 2009

(Contract
Number: De Dian Gu Si -011) 

BINGLANGJIANG POWER STATION

June 2009

1

 

Supplemental Agreement to the Power Purchase and SALE

Contract for the year of 2009

In order to establish a regulated power supply and utilization order and develop a healthy power
supply and utilization market, according to the installed capacity of the power stations, the
characteristics of the units, the power utilization load conditions of the year of 2009 and the
impact of financial crisis, on the basis of entering into the Power Purchase and Sale Contract
(General Provisions) by and between the power supplier and the consumer, the Power Purchaser and
the Power Seller have reached the following Supplemental Agreement (this “Agreement”) through
friendly consultation.

	I.	 	The Parties hereby determine that the annual contractual on-grid electricity
output for the year of 2009 is 120,000,000 kwh.

	 	1.	 	Considering the annual overhaul plan of the units and the regularity of power
supply and demand, the contractual on-grid electricity output allocated for each month
is set out as follows:

	 	 	 	 	 	 	 	 	 
	January:
	 	 	7,087,000	 	 	kwh;
	 
	 	 	 	 	 	 	 	 
	February:
	 	 	8,393,000	 	 	kwh;
	 
	 	 	 	 	 	 	 	 
	March:
	 	 	6,020,000	 	 	kwh;
	 
	 	 	 	 	 	 	 	 
	April:
	 	 	6,835,000	 	 	kwh;
	 
	 	 	 	 	 	 	 	 
	May:
	 	 	5,545,000	 	 	kwh;
	 
	 	 	 	 	 	 	 	 
	June:
	 	 	8,500,000	 	 	kwh;
	 
	 	 	 	 	 	 	 	 
	July:
	 	 	13,150,000	 	 	kwh;
	 
	 	 	 	 	 	 	 	 
	August:
	 	 	13,600,000	 	 	kwh;
	 
	 	 	 	 	 	 	 	 
	September:
	 	 	13,600,000	 	 	kwh;
	 
	 	 	 	 	 	 	 	 
	October:
	 	 	12,600,000	 	 	kwh;
	 
	 	 	 	 	 	 	 	 
	November:
	 	 	12,600,000	 	 	kwh;
	 
	 	 	 	 	 	 	 	 
	December:
	 	 	12,070,000	 	 	kwh.
	 
	 	 	 	 	 	 	 	 

2

 

	 	2.	 	On-grid Tariff during Commercial Operation Period
	 
	 	 	 	Upon being approved by the competent price regulatory authority of the local government, the
on-grid tariff for the units of the Power Plant during the commercial operation period shall
be: RMB 0.22/kwh for the dry season from January to May, the tariff for the wet season from
June to October shall be implemented according to the document with the number of De Fa Gai Jia
[2009] No. 296, and the tariff for November to December shall be implemented according to the
document with the number of [2008] No. 611; in case of alteration of the tariff policy of the
government, the new policy shall be followed. The reactive compensation tariff shall be:
RMB 0.02/kwh.

	 	3.	 	Under the normal production condition of the silicon smelting enterprises of our prefecture,
the Power Purchaser shall ensure eighty five percent (85%) of the contractual electricity
output of the Power Station could be dispatched out. In case of abnormal production condition
of the silicon smelting enterprises of our prefecture, the dispatching shall be carried out on
the principle of the same proportion for the same installed capacity. The surplus electricity
output generated not in compliance with the dispatching instructions shall be deemed as
invalid electricity output and shall not be settled.
	 
	 	4.	 	In August of each year after having concluded the Power Purchase and Sale Contract, after
friendly consultations, the Parties may appropriately adjust the annual contractual on-grid
electricity output of that year and the contractual on-grid electricity output for the rest
months based on the actual situation of power supply and demand, and reach a written
agreement; prior to the end of November of each year, the Parties shall consult with each
other to determine the annual contractual on-grid electricity output for the next year, and
enter into a Power Purchase and

3

 

	 	 	 	Sale Contract for the next year before the end of December.
	 
	 	5.	 	The Power Seller shall strictly comply with the dispatching instructions and
provide with the production and operation data upon the request of the Power Purchaser,
such as: the daily electricity output, the overhaul plan, etc.

	II.	 	Equivalent Available Factor
	 
	 	 	The condition precedent for the Power Purchaser to purchase from the Power Seller the
electricity output not less than the annual contractual on-grid electricity output as
prescribed in Article 4.1 is that: the planned equivalent available factor of the generator
units determined in accordance with the annual contractual on-grid electricity output of that
year shall reach 59% or above. In the event the actual equivalent available factor of
the generator units fails to reach the aforesaid requirement, the Power Purchaser shall be
entitled to reduce its annual contractual on-grid electricity output corresponding to the
deficient proportion of the equivalent available factor.

	III.	 	The valid term of this Agreement shall be from January 1, 2009 to December 31, 2009.

This Agreement shall have the same legal effect as the Power Purchase and Sale Contract. This
Agreement comprises four (4) pages, and shall be signed in four (4) counterparts. Each
Party shall hold one (1) , and two (2) counterparts shall be filed with the local
power regulatory authority for record.

4

 

Power Purchaser: Yunnan Dehong Electric Power Co., Ltd.

               (Stamp)

Legal Representative:

Authorized Proxy:

Power Seller: Yunnan Huabang Electric Power Development Co., Ltd.

               (Stamp)

Legal Representative:

Authorized Proxy:

Signing Date: June 19, 2009 

Signing Place: Mangshi

5

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