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    ACCC
      CONDUCTOR

    DISTRIBUTION
      AGREEMENT

    

    BETWEEN

    FAR
      EAST COMPOSITE TECHNOLOGY CO. LTD.

    AND

    CTC
      CABLE CORPORATION

    

    

    The
      following “ACCC Conductor Distribution Agreement” (‘Agreement’)
      shall
      be effective as of the 30th
      day of
      January, 2007 (the “Effective
      Date”)
      by and
      between:

    

    (1) CTC
      Cable Corporation,
      a
      Nevada Corporation with its principal offices at 2026 McGaw Avenue, Irvine
      92614, USA (hereinafter referred to as “CTC”);
      and

    

    (2) Far
      East Composite Technology Co. Ltd
      with its
      principal offices at #200
      Fanxing Rd. Gaocheng Town Yixing City, Jiangsu 214257 PRC (hereinafter
      referred to as the “Distributor”),
      either or both of which may be referred to as “Party”
or
      “Parties”.

    

    

    RECITALS

    

    WHEREAS,
      CTC is
      in the business of developing, manufacturing and selling Products (hereinafter
      defined) for the electric power industry, including ACCC Conductor and ACCC
      Accessories; and

    

    WHEREAS,
      Distributor is in the business of distributing electrical power transmission
      and
      distribution conductor; 

    

    WHEREAS,
      CTC
      desires to expand its distribution market to the Territory as defined herein
      and
      Distributor desires to distribute or assist in the distribution of certain
      quantities of Product in accordance with the terms and conditions herein;

    

    NOW
      THEREFORE,
      in
      consideration of the foregoing premises, which are incorporated into and made
      a
      part of this Agreement, and of the mutual covenants which are recited herein,
      the Parties agree as follows:

    

    
      
         

      

      
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    Article
      1 Definitions

    

    As
      used
      in this Agreement, the following terms shall have the meanings defined in this
      Article.

    

     

    1.1 ‘ACCC
      Accessories’
      means
      the specially designed splices and dead ends used in joining and anchoring
      ACCC
      Conductor, together with any tension clamps and other accessories used to
      install the ACCC Conductor.

    

    1.2 ‘ACCC
      Conductor’
      means
      stranded ACCC Core, including without limitation, all CTC proprietary and public
      domain conductor and cable configurations and alloys compatible with ACCC
      Core.

    

    1.3 ‘ACCC
      Core’
      means a
      composite core provided to Distributor by CTC or a Third Party authorized by
      CTC.

    

    1.4 ‘Authorized
      ACCC Installer’
      means
      Distributor and/or any Third Party authorized by Distributor that has been
      authorized and certified to install ACCC conductor by CTC in accordance with
      Installation Guidelines. 

    

    1.5 ‘Affiliate’
      means a
      legal entity:

    

    
      	 	
              (i)

            	
              in
                which the CTC or Distributor has or acquires during the term of this
                Agreement, an ownership interest of greater than
                10%;

            

    

    

    
      	 	
              (ii)

            	
              which
                directly or indirectly through one or more intermediaries, either
                controls, is controlled by, or is in common control with Distributor
                or
                CTC, “control” under this paragraph means having the power to direct the
                business and operation; or

            

    

    

    
      	 	
              (iii)

            	
              which
                assumes all the obligations and liabilities of any Party relating
                to this
                Agreement during its term .

            

    

    

    Affiliates
      include both subsidiaries and parent corporations of CTC or
      Distributor.

    

    1.6 ‘Confidential
      Information’
      includes, but is not limited to, the Disclosing Party’s business practices,
      processes, procedures, methods, strategies, techniques, business plans,
      financial data, pricing information, sales volume data, market research,
      marketing and sales plans, customer lists and related information regarding
      the
      Disclosing Party’s customers (past, present and prospective), information
      regarding the Disclosing Party’s sources of supply and other business
      relationships, contracts, current and future Product information, technical
      and
      non-technical data, research and development, reports, computer programs,
      software, designs, drawings, devices, specifications, machines, tools, models,
      inventions, patent disclosures, samples, materials, ideas, know-how,
      documentation, Requests for Proposals, and other information furnished to the
      Receiving Party hereunder. 

    

    
      
         

      

      
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    1.7 ‘CTC
      Intellectual Property’
      means
      all CTC patent rights, trademarks, trade names, copyrights and proprietary
      information owned, licensed to, or otherwise legally in the possession of CTC
      related to Product or ACCC Accessories.

    

    1.8 ‘Customer’
      means
      purchaser of Product within the Territory.

    

    1.9 ‘Deliver’
      or
‘Delivery’
      means
      delivery of or to deliver the quantity of Product ordered in accordance with
      a
      particular Purchase Order.

    

    1.10 ‘Disclosing
      Party’
      means
      the party that discloses or otherwise makes available Confidential Information
      to a Receiving Party.

    

    1.11 ‘Distribution
      Territory’
      means
      the countries into which Distributor can freely sell the Product by seeking
      orders and contracts, bidding in tenders and actively developing the market.
      The
      list of Distribution Territories is set out in Exhibit “A” hereto. 

    

    1.12 ‘Exhibit’
      means
      the Exhibits attached hereto as modified from time to time,
      including:

    

    
      	 	
              Exhibit
                “A”

            	
              Territory
                Definitions;

            

    

    
      	 	
              Exhibit
                “B”

            	
              Specifications;

            

    

    
      	 	
              Exhibit
                “C”

            	
              Minimum
                Sales and Purchases;

            

    

    
      	 	
              Exhibit
                “D”

            	
              Standard
                ACCC Payment Terms;

            

    

    
      	 	
              Exhibit
                “E”

            	
              Technical
                Assistance from CTC;

            

    

    
      	 	
              Exhibit
                “F”

            	
              Reel
                Specifications and Handling;

            

    

    
      	 	
              Exhibit
                “G” 

            	
              Product
                Handling and Storage;

            

    

    
      	 	
              Exhibit
                “H”

            	
              Installation
                Guidelines;

            

    

    
      	 	
              Exhibit
                “I”

            	
              Product
                Pricing;

            

    

    
      	 	
              Exhibit
                “J”

            	
              Taxes
                Applicable to Distributor;

            

    

    
      	 	
              Exhibit
                “K”

            	
              Standard
                for Distributor’s Inspection of
                Products.

            

    

    

    1.13 ‘Installation
      Guidelines’
      means
      the approved requirements for the installation of ACCC Conductor and accessories
      as promulgated by CTC in its installation manual or guidelines from time to
      time.

    

    
      
         

      

      
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    1.14 ‘Product(s)’
      means
      ACCC Core, ACCC Conductor and/or ACCC Accessories purchased from CTC or a Third
      Party authorized by CTC.

    

    1.15 ‘Purchase
      Order’
      means
      the document which sets forth the quantities of each Product ordered and
      delivery dates mutually agreed by Distributor and CTC.

    

    1.16 ‘Receiving
      Party’
      means
      the party that receives Confidential Information from the Disclosing
      Party.

    

    1.17 ‘Regulatory
      Authorities’
      means
      governmental or regulatory authorities having jurisdiction over the manufacture,
      commercial sale and installation and/or use of any Product.

    

    1.18 ‘Sale’
      or
‘Sold’
      means
      when Product is delivered, invoiced, or paid for, whichever occurs
      first.

    

    1.19 ‘Sales
      Territory’ means
      the
      region into which Distributor may only sell the Products on an exclusive or
      non-exclusive basis for products that are destined for installation and use
      within the established Sales Territory. The list of Sales Territories is
      attached hereto as Exhibit “A”.

    

    1.20 ‘Specifications’
      means,
      with respect to the Product, the specifications as described in Exhibit “B”
hereto relating to required mechanical properties of the end
      Product.

    

    1.21 ‘Termination
      Date’
      means 30
      January 2008.

    

    1.22 ‘Territory’
      means
      the Distribution Territory and the Sales Territory. 

    

    1.23 ‘Third
      Party’
      means a
      person or entity that is not a party to this Agreement.

    

    1.24 ‘Unsatisfactory
      Product’
      means a
      Product which is defective, inoperative, fails to meet the specifications of
      Distributor as described in Exhibit K, for Distributor’s inspection, or fails to
      meet the standard CTC provided to Distributor and as a consequence causes the
      Products to be rejected, returned or non-usable.

    

    
      
         

      

      
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    Article
      2 Distributorship

    

    2.1 Appointment.
      CTC
      hereby appoints Distributor as CTC’s exclusive distributor of Products in the
      Territory with the right to promote, distribute, market and sell Products during
      the term of this Agreement. Distributor shall have the right to appoint
      sub-distributors at its discretion provided, however, that any such
      sub-distributors adhere to the terms and conditions herein. Distributor hereby
      accepts such appointment as distributor. As long as an exclusive Distribution
      appointment by CTC exists, any sale of Product in the Territory shall be made
      through Distributor. CTC shall not provide ACCC Products to any other
      distributor in the Territory and CTC shall not provide ACCC Products to any
      customer in the Territory without Distributor’s prior written
      consent.

    

    2.2 Obligations
      of Distributor.

    

    
      	 	
              (i)

            	
              Distributor
                shall adhere to CTC’s rules for handling and storage as set forth Exhibit
                G. Such rules for handling and storage shall not be more or higher
                than
                those applicable to other
                distributor.

            

    

    

    
      	 	
              (ii)

            	
              Distributor
                shall distribute Product provided by CTC or a Third Party authorized
                by
                CTC.

            

    

    

    
      	 	
              (iii)

            	
              Subject
                to Article 6.0 hereof and specific Purchase Order, Distributor shall
                strictly adhere to the procedures for transport, delivery and sale
                of the
                Products to Third Parties as set forth in Exhibits A, C, and
                D.

            

    

    

    
      	
            	(iv)	
              Distributor
                shall accept product installation training from CTC. Distributor
                shall be
                obligated to dispatch engineers to the site and provide installation
                guidance to its customers. Distributor shall be obligated to provide
                to
                its employees and Customers Product installation training and
                certification, training in marketing and sale of the Products and
                supervision of Product installation. Distributor will use due diligence
                to
                install ACCC Conductor in accordance with CTC’s specifications and
                operating conditions. Distributor shall keep a record of installation
                and
                Product performance according to the instructions set forth in Exhibit
                H.
                Distributor shall provide CTC with the record of installation within
                a
                reasonable time following completion of installation.
                

            

    

     

    
      	 	
              (v)

            	
              Distributor
                shall use commercially reasonable efforts to promote the sale of
                Product
                in the Territory. Distributor shall not knowingly detract from CTC’s good
                name or the reputation of Product.

            

    

    

    
      	 	
              (vi)

            	
              Distributor
                shall handle import duties in accordance with the applicable PRC
                law;

            

    

     

     

    
      
         

      

      
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              (vii)

            	
              Stranding
                of ACCC Cable.
                Subject to satisfying the specific requirements of a separate
                qualification agreement, and provided Distributor is not in default
                under
                the Distribution Agreement, Distributor shall undertake to strand
                ACCC
                core with trapezoidal aluminum wire in accordance with the requirements
                set forth by CTC. Distributor shall undertake and complete the
                qualification process within twelve
                (12) calendar months after
                the execution of this Agreement. CTC shall provide assistance in
                such
                qualification process upon the request by Distributor. As CTC does
                not
                possess this capability, Distributor shall be responsible for developing
                its own equipment and using such equipment designed for the stranding
                of
                trapezoidal wire in this process. Distributor shall be responsible
                for
                developing its own process to accomplish this stranding. Upon the
                receipt
                of Distributor’s ACCC Conductor stranding qualification samples, CTC shall
                complete testing of Distributor’s ACCC Conductor qualification samples
                within seven (7) working days. Subject to Distributor demonstrating
                to
                CTC’s satisfaction that the final product fully meets all required
                specifications, and subject to the conditions defined in Article
                2.0, CTC
                shall grant Distributor the right to strand ACCC Cable using ACCC
                Core
                supplied by CTC. This right and requirement to strand shall be subject
                to
                CTC’s standard Manufacturing Agreement, which Distributor shall
                execute.

            

    

    

    2.3 Restrictions
      of Sale.
      During
      the term of and subject the terms of this Agreement, Distributor shall sell
      and
      deliver Product subject to the following restrictions:

    

    	(i)  	
            Distributor
              may Sell Product to Third Parties within the Territory as further
              specified herein on an exclusive basis, only for installation within
              the
              Distribution Territory;

          

    

    	(ii)  	
            Distributor
              may Sell Product to Third Parties outside the Territory (but within
              the
              borders of greater Peoples Republic of China including mainland China,
              Hongkong Special Administration Region, Macao Special Administration
              Region) on a non-exclusive basis. The Parties shall negotiate in good
              faith on the expansion of the Territory into other areas of Asia following
              the completion of the Agreement if Distributor has satisfied the Minimum
              Purchase Requirement hereunder. Any such expansion will be subject
              to the
              consent of CTC, which consent may not unreasonably withheld;
              or

          

     

     

    
      
         

      

      
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    	(iii)  	
            Distributor
              may Sell Product directly to Third Parties in response to a written
              request from CTC.

          

    

    2.4 Obligations
      of CTC

    

    	(1)  	
            CTC
              shall appoint Distributor as its the sole and exclusive distributor
              in the
              Territory during the term of this
              Agreement.

          

    

    	(2)  	
            CTC
              shall sell Products in accordance with the quantity and quality ordered
              by
              Distributor subject to the terms and conditions of this
              Agreement.

          

    

    	(3)  	
            Subject
              to the conditions of Articles 6.0 and 14.0 herein, CTC shall ship out
              Products before or on the delivery date specified in the documents
              of
              every round of Product sale.

          

    

    	(4)  	
            CTC
              shall provide technical support and personnel as requested by Distributor
              on an ad hoc basis, subject to availability and in accordance with
              the
              following terms:

          

    

    	(i)  	
            CTC
              shall provide line design and marketing support from time to time where
              requested by Distributor, either directly or through an authorized
              representative.

          

    

    	(ii)  	
            When
              requested by Distributor, CTC shall supply technical personnel on-site
              within the Territory as defined in Appendix
              E;

          

    

    	(iii)  	
            CTC
              shall make available to Distributor CTC’s technical information to the
              extent necessary for the installation and sale of Products by Distributor.
              All information furnished to Distributor pursuant to this Agreement
              shall
              be deemed included in CTC’s Confidential Information and shall be deemed
              subject to confidentiality provisions as set forth Article
              11.0.

          

    

    	(5)  	
            CTC
              shall provide or execute such documentation as may be necessary for
              Distributor to establish their legal right and authorization to resell
              the
              Products within the Territory.

          

     

    
      
         

      

      
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    	(6)  	
            CTC
              shall support Distributor’s activities at such fairs and trade shows as
              Distributor may elect to participate for the purpose of promoting the
              Products. Such support shall be pre-planned and limited to no more
              one
              trip per quarter for CTC personnel.

          

    

    	(7)  	
            Upon
              receipt of notification from Distributor of the sale of Products within
              the Territory by anyone not authorized by Distributor, CTC shall take
              such
              steps as may be within its reasonable ability to seek to stop such
              activities. In the event that CTC believes that it is unable to take
              effective action to terminate such infringing conduct, CTC shall advise
              Distributor and afford Distributor the right and opportunity to take
              action to terminate such infringing conduct, and CTC shall provide
              Distributor with its reasonable assistance in that
              effort.

          

    

    In
      addition, CTC shall abide by such obligations provided in other articles
      hereof.

    

    Article
      3 Prices
      and Terms

    

    3.1 Prices.
      CTC
      shall sell to Distributor, and Distributor shall buy from CTC, any product
      listed in Exhibit B hereto as well as updated or newly developed ones in
      relation to Products, at the prices mutually agreed by CTC and Distributor,
      which is reflected in any specific document of every round of sale, including
      but not limited to the respondence, the Purchase Order or the contract, with
      payment therefore to be made in U.S. dollars. [ ***]
      The
      pricing shown in Exhibit I does not include any federal, state or local
      turn-over taxes that may be applicable to the Products, but excluding any income
      tax. CTC will not escalate prices unless the price for aluminum rises to above
      $3300 per tonne as listed on the London Metal Exchange Cash Settlement Rate.
      [***].

    

    3.2 Orders
      for Product.
      CTC
      shall sell Product to Distributor in such quantities and at such times as
      Distributor may reasonably request as set forth in Article 5.0 herein, and
      as
      CTC agrees to accept by written acceptance of Distributor’s Purchase Order.
      Orders for Product shall be given by Distributor’s firm Purchase Orders, and
      shall be subject to all of the provisions of this Article 3.0 in addition to
      CTC
      and Distributor standard Purchase Order Terms and Conditions. Where Purchase
      Order has been accepted by CTC, in case of any conflict between this Agreement
      and the Purchase Order Terms and Conditions, the Purchase Order shall govern.
      Each order for Product given to CTC shall specify a reasonable delivery date
      in
      view of the requirements of Distributor’s customers, the quantity, pricing and
      the description of the Product ordered. CTC shall accept Distributor Purchase
      Orders and offer the price of the Products within five (5) working days after
      it
      receives them. Where CTC is unable to provide such Products in accordance with
      the Purchase Order delivery date specified therein, it shall also notify
      Distributor within five (5) working days upon receiving the Purchase Order.
      Failure of CTC to deliver a notice of non-acceptance to Distributor within
      such
      five (5) day period shall be deemed as rejection of the Purchase Order.

     

    
      
        

      

      [***]
        This
        material has been omitted pursuant to a request for confidential treatment
        and
        filed separately with the Securities and Exchange Commission.

       

    

    
      
         

      

      
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    3.3 Taxes.
      When CTC
      has a legal obligation to collect federal, state, or local taxes imposed on
      Distributor, the amount so collected shall be added to Distributor’s invoice and
      shall be paid by Distributor. Any taxes imposed on Distributor shall be
      specified in Exhibit J hereto. Any alteration to such taxes shall be notified
      in
      writing to Distributor three (3) months in advance.

    

    In
      the
      event that, under the applicable law, Distributor may enjoy any tax preference
      treatment in U.S., CTC shall be responsible for applying for and obtaining
      such
      treatment on behalf of Distributor, and Distributor shall in reasonable respects
      provide assistance.

    

    3.4 Claim
      for Shortage. Distributor
      shall submit in writing to CTC all claims for shortages in shipments within
      five
      (5) working days of receipt of Product. CTC shall make best effort to ship
      supplement Product as soon as possible after receipt of each claim and shall
      bear the expenses and costs including but not limited to Customers declaration
      fee, material and transit costs to rectify the shortage. 

    

    3.5 Distribution
      Prices. Distributor
      shall solely determine the prices at which it resells
      the
      Product in the Territory.

    

    3.6 Product
      Shipment. CTC
      shall
      ship to Distributor directly pursuant to Article 6.1.

    

    3.7 Sales
      of ACCC Accessories. Any
      ACCC
      Accessories sold in conjunction with the Sale of Products must either (i) be
      produced by a manufacturer duly licensed by CTC (splices and dead ends), or
      (ii)
      have been approved by CTC for use in conjunction with ACCC Conductor (other
      accessories). 

    

    3.8 Inspection
      of Product by Distributor. Distributor
      shall have the right to inspect the Products purchased from CTC within one
      (1)
      month upon the actual installation or use of the Product but in not event
      exceeding six (6) months of upon receipt of Distributor. Where the Products
      are
      deemed as Unsatisfactory Product in accordance with Exhibit K hereto, the
      remedies of Distributor shall include, without limitation, replacement of
      Products by CTC, CIF to the named destination without obligation to Distributor.
      Evidence of unacceptability must be made available to CTC before replacement
      of
      the Product.

    

    
      
         

      

      
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    Article
      4 ACCC
      Conductor Certification

    

    4.1 External
      Regulatory Approvals in the Distribution Territory.
      The
      Distributor shall be responsible for obtaining appropriate certification from
      the State Grid as required to certify the use of Product for use in the
      transport and distribution of electricity in the Territory prior to making
      any
      Sale. CTC shall cooperate in all reasonable respects in the certification
      process. 

    

    

    Article
      5 Minimum
      Sales

     

    5.1 Minimum
      Purchase Requirements.
      The
      Distributor shall place non-cancellable Purchase Orders for a non-returnable
      minimum of six hundred (600) kilometers of ACCC Conductor per each calendar
      quarter during the term of this Agreement beginning on the Effective Date of
      this Agreement; and subject to the extension of the term of this Agreement
      pursuant to Article 12.1 of this Agreement, Distributor shall place orders
      for a
      non-returnable minimum quantity of nine hundred (900) km of ACCC Cable per
      calendar quarter for Year 2, and one thousand and two hundred (1200) km per
      quarter for remainder of the term of this Agreement (“Minimum
      Purchase Requirements”).
      The
      Minimum Purchase Requirement may be, at Distributor’s sole option, changed to
      ACCC Core once Distributor has been qualified by CTC as a certified ACCC Cable
      producer utilizing ACCC Core supplied by CTC. The principal terms of this
      Minimum Purchase Requirement are set forth in Exhibit C.

    

    Provided
      that the Purchase Order proposed by the Distributor concurs with the conditions
      of this Agreement, if CTC fails to accept Purchase Orders for any reason or
      CTC
      provides Unsatisfactory Products, Distributor shall maintain its exclusivity
      and
      shall be correspondingly exempted from the relevant liabilities in relation
      to
      Minimum Purchase Requirements under this Agreement. 

    

    5.2 Notice
      of Failure to Meet Minimum Purchase Requirements.
      Subject
      to Article 3.2, Distributor will promptly notify CTC if it will be unable to
      purchase Product in accordance with Minimum Purchase Requirements. Distributor
      shall maintain its exclusivity so long as Minimum Purchase Requirements are
      met.
      If Distributor fails to meet Minimum Purchase Requirements in any one particular
      quarter, CTC shall have the option: (a) waive the Minimum Purchase Requirement
      for that particular quarter, ( b) to convert Distributor’s appointment granted
      in Article 2.1 hereof, to a non-exclusive appointment in the Territory,
      notwithstanding anything to the contrary in Article 2.1; or (c) to terminate
      this Agreement in its entirety; provided that CTC give Distributor thirty (30)
      days written notice of its election. Where CTC elects option (a) above, any
      waiver by CTC on any particular failure by Distributor of its Minimum Purchase
      Requirements shall not be considered a waiver of any subsequent Minimum Purchase
      Requirements. Where CTC elects the option (b) hereinbefore, Distributor’s
      appointment shall be converted to a non-exclusive one and correspondingly,
      Distributor’s obligation of Minimum Purchase Requirements shall be released from
      the effective date of conversion. CTC shall also be released from the pricing
      guidelines defined in Article 3.1 and Exhibit I.

    

    
      
         

      

      
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    5.3 Labeling
      of Product.
      The
      Distributor shall cause the Product to be labeled and packaged in accordance
      with the applicable requirements of the appropriate Regulatory Authorities
      in
      the Territory; and in accordance with the reasonable written instructions of
      the
      Customer in the Territory. Distributor may also use its own label on the
      Products as long as CTC’s label remains on all Products.

    

    5.4 Trademarks.

    

    (i)
      All
      Product sold and distributed shall bear CTC’s logo and the words in English “CTC
      Cable Corporation ACCC Conductor”. 

    

    (ii)
      During
      the term of this Agreement, Distributor shall have the right to indicate to
      the
      public that it is an authorized distributor of the Products and to advertise
      within the Territory such Products under the trademarks, service marks and
      trade
      names that CTC may adopt from time to time or may have the right to use
      (“CTC
      Trademarks”).
      Distributor shall not alter or remove any CTC Trademark applied to the Products.
      Nothing herein shall grant to Distributor any right, title or interest in CTC
      Trademarks, and all use of such Trademarks by Distributor shall ensure solely
      to
      the benefit of CTC. 

    

     

    
      
         

      

      
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    Article
      6 Transport
      and Delivery of Product

    

    6.1 Delivery.
      CTC
      shall ship the Products in accordance with the terms of the Purchase Order.
      In
      the absence of any terms in any Purchase Order between CTC and Distributor,
      CTC
      will make all reasonable commercial efforts to deliver the Product to the Port
      of Shanghai within one hundred (100) days after confirmation of the terms of
      the
      order by Distributor, however the Products shall be shipped out within one
      hundred (100) days upon delivery date of the confirmation of the price offered
      by CTC of the Products and be in accordance with INCOTERMS 2000, CIF named
      port
      of shipment. 

    

    6.2 Reels
      and Packaging.
      ACCC
      Conductor will be shipped on either steel or wood reels. Each reel of Product
      shall be labeled in accordance with the requirements of Exhibit F and usually
      shipped in standard containers. The minimum specifications of any reels used
      for
      the transport of Product are fixed in Exhibit F. All reels of Product must
      be
      labeled with the minimum information, in English, that is contained in Exhibit
      F.

    

    Article
      7 Warranty

    

    7.1 Warranty. CTC
      hereby represents and warrants that Product, either provided by CTC or any
      Third
      Party authorized by CTC, at the time of shipment shall meet CTC Specifications
      as set forth in Exhibit B. This Warranty shall be effective for a period of
      twelve (12) months after the date of installation of Product by the end user,
      but not longer than twenty four (24) months from the date of CTC’s invoice
      covering the Product provided that (i) Distributor gives CTC written notice
      of
      any defect within thirty (30) days of discovery of such defect; and (ii) that
      Product fails during normal use within one year from the date of installation
      (the commencement of such one year to be not more than twelve (12) months from
      the date of CTC’s invoice covering the Product), provided that Product was
      installed in accordance with CTC approved procedures as set forth in Exhibit
      G
      and by Authorized ACCC Installers; and (iii) that the failure was caused by
      defects in material or workmanship in existence at the time of shipment. In
      the
      event that the Distributor needs to extend the storage time prior to
      installation, CTC will extend the warranty period for an additional six (6)
      months for a fee of one percent (1%) of the ACCC conductor price per meter
      for
      the total number of meters to be extended, payable at date of the extension.
      

    

    

    CTC
      hereby
      authorizes Distributor to pass on CTC standard warranty as set forth in this
      Article 7.1.

    

    CTC
      possesses all rights in and to the Products necessary to sell and/or distribute
      the Products within the Territory. 

    

    
      
         

      

      
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    The
      sale
      of the Products within the Territory by Distributor in accordance with the
      terms
      and conditions of this Agreement will not violate the rights of any third
      parties: (i) to sell reproductions of the Products within the Territory or
      (ii)
      with respect to the reproduction of their intellectual property or other
      contributions to the Products.

    

    This
      Agreement does not conflict with or violate any rights, licenses or agreements
      which CTC may have with any other party.

    

    CTC
      will
      support Distributor in obtaining a certificate or certificates of compliance
      from necessary governing bodies in China, with respect to all applicable
      materials associated with Products, which records shall be maintained by CTC’s
      custodian of records at its place of business, as applicable, in complete
      compliance with applicable law.

    

    Products
      shall comply with CTC Specifications as described in Exhibit B hereto, Standard
      for Distributor’s Inspection of Products as described in Exhibit K hereto,
      relevant laws, codes and regulations within each of the relevant areas where
      Products are intended to be sold, regulating the distribution, sale, resale,
      environment and safety, as well as any other areas that are applicable to the
      Products;

    

    CTC
      shall
      deliver Products on or before the delivery date specified in the Purchase Order
      and in accordance with Article 6.1 .

    

    Products
      shall meet the minimum standards of safety in the industry within each of the
      relevant areas where Products are intended to be sold;

    

    CTC
      represents and warrants that Products supplied pursuant to this Agreement will
      comply with the CTC’s, Distributor’s Products requirements and the Products
      design and specifications in Exhibit B and Exhibit K hereto;

    

    CTC
      undertakes that CTC shall supply hardware to Distributor for sale in China
      in
      accordance with the requirement by Distributor. Such hardware shall not infringe
      upon any third party’s rights.

    

    7.2 THE
      FOREGOING WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES, EITHER EXPRESS OR
      IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, OR FITNESS FOR A PARTICULAR
      PURPOSE AND ANY OTHER OBLIGATION ON THE PART OF CTC OR DISTRIBUTOR.

    

    
      
         

      

      
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    Article
      8 Indemnification

    

    
      
        8.1
          Distributor
          Indemnification.
          Provided
          that the Products meet CTC Specifications and Article 7.1 hereof is abided
          by
          CTC, Distributor will indemnify CTC against and hold it harmless from any
          and
          all loss or liability payable to Third Parties for any and all judgments,
          claims, causes of action, suits, proceedings, losses, damages, demands,
          fees,
          expenses, fines, penalties or costs (including without limitation reasonable
          attorney’s fees, costs and disbursements) based on or arising out of any claim
          made against CTC or Distributor, except in the case of willful misconduct
          on the
          part of CTC. Distributor shall have the right to control the proceedings
          through
          counsel of its choice and to settle the case or claim, provided that Distributor
          secures a full release for CTC. CTC may participate in all such proceedings
          at
          its own costs and expense. 

      

    

    

    Further,
      the Parties shall cooperate with each other in a reasonable manner at their
      own
      expense to provide information and access to personnel related to the defense
      of
      such matter.

    

    Notwithstanding
      the obligations of this Article 8.1, under no circumstances shall Distributor’s
      cumulative total liability exceed $US [ ***]
      per each
      calendar year for the Term of this Agreement; except in the case that
      Distributor is ruled by a court of final jurisdiction with no right of appeal
      to
      be liable as a result of its willful misconduct, Distributor’s cumulative total
      liability pursuant to this section 8.1 shall not exceed $US [***] per each
      calendar year for the Term of this Agreement.

    

    8.2 CTC
      Indemnification.
      CTC
      shall indemnify and hold Distributor harmless from any and all loss or liability
      payable to Third Parties for any and all judgments, claims, causes of action,
      suits, proceedings, damages, demands, fees, expenses, fines, penalties and
      costs
      (including without limitation reasonable attorney’s fees, costs and
      disbursements) arising from any claim made against CTC or Distributor to the
      extent that it results from breach of CTC’s warranty in Article 7.1. CTC shall
      have the right to control the proceedings through counsel of its choice and
      to
      settle the case or claim, provided that CTC secures a full release for
      Distributor. Distributor may participate in all such proceedings at its own
      costs and expense. 

     

    
      
        

      

      [***]
        This
        material has been omitted pursuant to a request for confidential treatment
        and
        filed separately with the Securities and Exchange
        Commission.

    
      
         

      

      
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    Further,
      the Parties shall cooperate with each other in a reasonable manner at their
      own
      expense to provide information and access to personnel related to the defense
      of
      such matters. 

    

    Notwithstanding
      the obligations of this Article 8.2, under no circumstances shall CTC’s
      cumulative total liability exceed $US [ ***]
      per each
      calendar year for the Term of this Agreement; except in the case that CTC is
      ruled by a court of final jurisdiction with no right of appeal to be liable
      as a
      result of its willful misconduct, CTC’s cumulative total liability pursuant to
      this section 8.2 shall not exceed $US [***] per each calendar year for the
      Term
      of this Agreement.

    

    8.3 NEITHER
      PARTY SHALL UNDER ANY CIRCUMSTANCES BE LIABLE TO THE OTHER PARTY OR ITS
      AFFILIATES FOR ANY INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES IN
      ANY
      WAY RELATED TO PRODUCT.

    

    8.4 Insurance.
      Subject
      to the specific term of INCOTERMS 2000 employed in every round of sale of
      Products, CTC and Distributor each represent that they are sufficiently
      self-insured or insured against any liability arising under this Article
      8.0.

    

    Article
      9 ACCC
      Conductor Installation

    

    9.1 Distributor
      shall be obligated to provide to its employees and Customers Product
      installation training and certification, training in marketing and sale of
      the
      Products and supervision of Product installation.

    

    9.2 CTC
      shall
      provide technical support and personnel as requested by Distributor on an ad
      hoc
      basis, based on availability and in accordance with the following
      terms:

    

    (i)
      CTC
      shall, at its option, provide line design and marketing support from time to
      time or as requested by Distributor, either directly or through an authorized
      representative;

    

    (ii)
      When
      requested by Distributor, CTC shall, at its option, supply technical personnel
      on-site within the Territory as defined in Exhibit E;

    

    (iii)
      CTC
      shall
      make available to Distributor CTC’s technical information to the extent
      necessary for the installation and sale of Products by Distributor. All
      information furnished to Distributor pursuant to this Section 9.0 shall be
      deemed included in CTC’s Confidential Information and shall be deemed subject to
      confidentiality provisions as set forth in Article 11.0.

    

    
      
         

      

      
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    9.3 Technical
      support or assistance provided by CTC shall be free, if is derived from CTC’s
      failure to satisfy the obligations under this Agreement. Distributor will use
      due diligence to install ACCC Conductor in accordance with CTC’s specifications
      and operating conditions. Distributor shall keep a record of installation and
      Product performance according to the instructions set forth in Exhibit H.
      Distributor may provide CTC with the record of installations, in English, within
      a reasonable time (not to exceed 30 calendar days) following completion of
      installation.

    

    9.4 Where
      CTC
      has reasonable cause and has obtained written consent from Distributor, CTC
      shall have access to all ACCC Conductor sites within the Territory and reserves
      the right to audit such sites at its option. CTC shall further have access
      to
      all ACCC installation and operational data at Distributor’s facility during
      normal working hours. 

    

    

    Article
      10 Intellectual
      Property Right

    

    10.1 Distributor
      acknowledges that CTC claims it owns all patents, trademarks, trade names,
      copyrights, trade secrets, and mask work rights applicable to the Products.
      The
      use by Distributor of any of these intellectual property rights is authorized
      only for the purposes herein set forth, and upon termination of this Agreement
      for any reason such authorization shall cease. 

    

    10.2 The
      intellectual property rights granted herein are strictly limited to the sale
      of
      Product under the terms and conditions herein. No rights, expressly or by
      implication, are granted to Distributor to manufacture, duplicate or otherwise
      copy or reproduce any of the Products. Distributor hereby agrees not to
      manufacture, duplicate or otherwise copy or reproduce any Products or ACCC
      accessories. Distributor further agrees not to use, duplicate or otherwise
      copy
      any CTC Intellectual Property or CTC Confidential Information beyond the
      purposes set forth in this Agreement. 

    

    10.3 Where
      any
      intellectual property right in or to improvement, enhancement, or modification
      is made by Distributor regarding Products or the installation thereof on the
      basis of the intellectual property owned by CTC, such IP right shall belong
      to Distributor and Distributor hereby grants CTC an non-exclusive, royalty
      free,
      and irrevocable license to use such intellectual property right.

    

    
      
         

      

      
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    Article
      11 Confidential
      Information

     

    11.1 Both
      Parties acknowledge that each Party has a legitimate and continuing proprietary
      interest in the protection of its Confidential Information (as defined below)
      and that, prior to the date hereof, each has invested substantial sums and
      will
      continue to invest substantial sums, to develop, maintain and protect such
      Confidential Information. Both Parties further acknowledge that the Confidential
      Information has value throughout the world, loss of which value may cause
      irreparable harm. Consequently, in order to protect Confidential Information,
      the Parties agree to the following confidentiality provisions. The Receiving
      Party shall have a duty to protect only that Confidential Information which
      is
      either (a) disclosed by the Disclosing Party in writing or other tangible form
      and clearly identified thereon as confidential or proprietary at the time of
      first disclosure, or (b) disclosed by the Disclosing Party in any other manner
      and identified as confidential at the time of disclosure and is also summarized
      and designated as confidential in a written memorandum delivered to the
      Receiving Party within thirty (30) days of the disclosure.

    

    11.2 The
      Receiving Party agrees to use the Confidential Information for the sole limited
      purpose of its performance under this Agreement and for any other purpose which
      the Disclosing Party authorizes in writing (collectively, the “Purpose”) and not
      for any other purpose whatsoever. The Receiving Party shall not use the
      Confidential Information in any manner which is detrimental to the Disclosing
      Party. The Receiving Party also agrees that it shall limit dissemination of
      the
      Confidential Information only to those of its employees or employees of
      Affiliates who have a need to know in relation to the Purpose. The Receiving
      Party shall inform all such employees of the confidential nature of the
      Confidential Information. The Receiving Party further agrees that it shall
      use
      the same degree of care to protect the Confidential Information as the Receiving
      Party uses to protect its own proprietary information, which in any event shall
      be no less than a reasonable degree of care, and to prevent communication of
      any
      Confidential Information, or any portion thereof, to any third party. The
      Receiving Party shall ensure that any and all Affiliates to which the Receiving
      Party discloses any Confidential Information is bound to protect such
      Confidential Information in accordance with the terms of this Agreement prior
      to
      any such disclosure. 

    

    11.3 The
      obligations set forth in this Article 11.0 shall survive termination and
      expiration of this Agreement.

    

    
      
         

      

      
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    11.4 The
      obligations of the Receiving Party, contained in Article 11.4 above, shall
      not
      apply to any Confidential Information which:

    

    	a.  	
            the
              Receiving Party can show was already known to the Receiving Party prior
              to
              its receipt of the Confidential Information; or

          

    

    	b.  	
            the
              Receiving Party can show was independently developed by the Receiving
              Party without use of, or reliance upon, any of the Confidential
              Information; or

          

    

    	c.  	
            is
              publicly available or becomes publicly available without a breach of
              this
              Agreement by the Receiving Party; or

          

    

    	d.  	
            is
              rightfully received by the Receiving Party from a third party who is
              not
              under a duty of confidentiality to the Disclosing Party;
              or

          

    

    	e.  	
            is
              disclosed by the Disclosing Party to a third party without a similar
              restriction of the third party’s rights;
              or

          

    

    	f.  	
            is
              disclosed pursuant to any judicial or governmental requirement or order;
              provided that the Receiving Party takes all reasonable steps to give
              the
              Disclosing Party sufficient prior notice in order to seek a protective
              order or contest such requirement or order, provided that the Receiving
              Party’s obligations under this Article 5.0 shall remain in effect with
              respect to all third parties except the judicial or governmental entity
              issuing the requirement or order.

          

    

    11.5 Upon
      request from the Disclosing Party or upon any termination of this Agreement,
      whichever shall first occur, and at the direction of the Disclosing Party,
      the
      Receiving Party agrees to either return to the Disclosing Party or destroy
      (and
      certify such destruction in writing to the Disclosing Party) all Confidential
      Information, and all copies thereof as well as all notes, documents, summaries
      and other recordings of the Confidential Information then in its possession,
      and
      to permanently delete all email and electronic files containing any Confidential
      Information from its systems except that the Receiving Party may retain one
      archival copy thereof in the office of its legal counsel, which copy shall
      perpetually remain subject to all of the confidentiality obligations contained
      herein until such copy has been returned to the Disclosing Party or destroyed
      by
      the Receiving Party and certified destroyed to the Disclosing Party by the
      Receiving Party. 

    

    11.6 All
      Confidential Information hereunder remains the sole property of the Disclosing
      Party. The Disclosing Party warrants that it has the right to disclose its
      Confidential Information to the Receiving Party under this Agreement. The
      Disclosing Party does not warrant the accuracy, completeness or suitability
      for
      a particular purpose of any Confidential Information disclosed and provides
      such
      Confidential Information on an “as is” basis.

    

    
      
         

      

      
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    11.7 This
      Agreement imposes no obligation on either party to disclose any of its
      Confidential Information to the other party hereto, or to make any use of
      Confidential Information which it receives from the other party. No rights
      or
      obligations other than those expressly recited herein are to be implied from
      this Agreement. Nothing in this Agreement shall be construed to convey to the
      Receiving Party any right, title or interest in any Confidential Information,
      or
      any license to use, sell, distribute, exploit, copy or further develop the
      Confidential Information in any way. Furthermore, no license is hereby granted
      or implied to the Receiving Party under any patent, copyright or trademark,
      any
      application for any of the foregoing, or any trade name, trade secret or other
      intellectual property right in which the Disclosing Party has any right, title
      or interest. Nothing herein shall in any way affect the present or prospective
      rights of the parties hereto under the patent, copyright or other intellectual
      property laws of any country.

    

    11.8 Press
      Releases.
      Neither
      party shall, without the prior written authorization of the other party,
      disclose to any Third Party the terms and conditions of this Agreement, except
      as may be necessary to establish or assert rights hereunder, or as may be
      required by law or governmental regulations. The Parties agree that this
      Agreement may be disclosed to potential investors and their agents (including
      underwriters, brokers and accountants), and may be disclosed in filings with
      the
      Securities and Exchange Commission. As one purpose of this Agreement is to
      publicize the relationship created by this Agreement, it is the Parties
      intention to effect press releases and to create marketing materials regarding
      the distribution of Product by Distributor. To the extent possible, the Parties
      agree to coordinate their efforts in this regard, provided, however, that any
      such publication is made pursuant to the terms herein. 

    

    11.9 Competitive
      Products. During
      the Term of this Agreement and any extensions that may be granted to this Term
      neither Distributor nor its Affiliates shall manufacture or market: (a) any
      electrical transmission or distribution line products having a composite
      material serving as a strength member, or (b) any cable accessories intended
      to
      compete with ACCC Accessories 

    

    
      
         

      

      
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    Article
      12 Term
      And Termination

    

    12.1 Term.
      The
      initial term of this Agreement shall commence as of the Effective Date, and
      shall remain in effect through the Termination Date. Provided that (a)
      Distributor has fully and completely complied with terms and conditions of
      this
      Agreement through the Termination Date, and (b) has fulfilled all of the terms
      and conditions of the Stranding Qualification Agreement which shall otherwise
      be
      executed by the Parties , and (c) executes CTC’s standard Manufacturing
      Agreement dealing with cable stranding, Distributor shall have the right to
      renew this Agreement for an additional period of two (2) years by providing
      CTC
      with written notice of its intention to renew this Agreement at least three
      (3)
      months prior to the Termination Date. 

    

    12.2 Voluntary
      Termination.
      Each
      Party shall have the right to terminate this Agreement by giving the other
      Party
      written notice within 30 calendar days, only if:

     

    (i)
      the
      other
      Party violates or fails to perform any material provision of this Agreement
      in
      any material respect, and such failure continues unremedied for a period of
      thirty (30) days after the date the notifying Party gives written notice to
      the
      defaulting Party with respect thereto; or

     

    (ii)
      the
      other
      Party is declared insolvent or bankrupt by a court of competent jurisdiction,
      or
      a voluntary petition of bankruptcy is filed in any court of competent
      jurisdiction by the other Party, or the other Party makes or executes any
      assignment for the benefit of creditors, or a receiver is appointed to control
      the business of the other Party; or

     

    (iii)
      a
      Regulatory Authority orders that Distributor cease distributing the
      Product.

    

    This
      Agreement shall terminate immediately upon the giving of notice of termination
      pursuant to this Article 12.2.

    

    12.3 Completion
      of Orders Outstanding.
      Subject
      to Article 6.0 hereof and specific Purchase Order, the termination of this
      Agreement shall not operate to relieve CTC from its obligation to deliver all
      Product ordered through Purchase Orders provided to CTC prior to receipt of
      notice of such termination.

    

    12.4 Remainder
      of Products.
      Distributor shall be entitled to continue to sell the remainder of Product
      after
      the Termination Date within the Territory.

    

    
      
         

      

      
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    Article
      13 Interpretation,
      Governing Law & Dispute Resolution

    

    13.1 Compliance
      with Laws.
      Distributor shall be responsible for complying with all laws, including but
      not
      limited to any statute, rule, regulation, judgment, decree, order, or permit
      applicable to its performance under this Agreement.

    

    13.2 Governing
      Law.
      The
      rights and obligations of the parties under this Agreement shall be governed
      by
      the laws of the State of California (without regard to principles of conflict
      of
      law), including, but not limited to, the California Uniform Commercial Code.
      The
      application of the United Nations Convention on Contracts for the International
      Sale of Goods is hereby specifically excluded by the Parties. Such exclusion
      shall include the United Nations Convention on the Limitation Period in the
      International Sale of Goods.

    

    13.3 Dispute
      Resolution.
      In the
      event of any dispute, claim, question, or disagreement arising from or relating
      to this agreement or the breach thereof, the Parties hereto shall use their
      best
      efforts to settle the dispute, claim, question, or disagreement. To this effect,
      they shall consult and negotiate with each other in good faith and, recognizing
      their mutual interests, attempt to reach a just and equitable solution
      satisfactory to both Parties. [ ], as the authority institution mutually agreed
      may be engaged to resolve the technology problem of Product. If they do not
      reach such solution within a period of sixty (60) days, then, upon notice by
      either Party to the other, all disputes, claims, questions, or differences
      shall
      be finally settled by arbitration administered by Hong Kong International
      Arbitration Centre in accordance with the provisions of its arbitration rules
      in
      effect at the time of applying for arbitration. Any such arbitration proceedings
      will be held in English in Hong Kong. Any judgment on the award rendered by
      the
      arbitrator(s) may be entered in any court having jurisdiction
      thereof.

    

    13.4 Language
      and Interpretation.
      The
      Parties agree that this document may be translated from English to Chinese.
      The
      English version and the Chinese version shall have the equal authentic. In
      the
      event of any discrepancy between the two language versions, the Parties shall
      try to resolve such discrepancy through friendly discussions. If such friendly
      discussions do not resolve such discrepancy, the English version shall be the
      official version.

    

    13.5 Interpretation
      and Headings.
      The
      rules of construction to the effect that ambiguities are to be resolved against
      the drafting party shall not be employed in the interpretation of this Agreement
      or of any amendments or supplements hereto. The section headings are inserted
      for convenience of reference only and are not intended to be a part of or to
      affect the meaning or interpretation of any of the provisions of this
      Agreement.

    

    
      
         

      

      
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    13.6 Conflicts
      of Interpretation with other agreements.
      If any
      term or condition of this Agreement conflicts with any attached or referenced
      text, this Agreement shall prevail.

    

    

    Article
      14 Force
      Majeure

    

    14.1 Force
      Majeure Circumstances.
      Neither
      Party hereto shall be liable to the other for damages, nor shall this Agreement
      be terminable by reason of, any delay or default in such Party's performance
      hereunder, if such delay or default is caused by conditions beyond such Party's
      control including, but not limited to, acts of God, war, terrorism,
      insurrection, civil commotion, destruction of production facilities or materials
      by earthquake, fire, flood or storm, labor disturbances (including strikes
      or
      lockouts), epidemic or failure of public utilities.

    

    14.2 Notification
      Required.
      Any
      Party hereto that wishes to invoke force majeure circumstances to excuse its
      performance must notify the other Party of the event of force majeure under
      Article 14.1 above or, if know in advance, the possibility of such an event
      within five (5) days and give details of such event and an estimate as to its
      effect on performance promptly thereafter; in addition such Party must employ
      all reasonable efforts toward prompt resumption of its performance hereunder
      when possible if its performance is delayed or interrupted by reason of such
      event.

    

    

    Article
      15 Other
      Miscellaneous Provisions

    

    15.1 Relationship.
      This
      Agreement shall not constitute a partnership, joint venture, or formal business
      organization of any kind. Each Party is and shall remain an independent
      contractor as to the other Party. The Distributor is not constituted or
      appointed an agent or representative of CTC for any purpose, nor shall anything
      contained herein be deemed or construed as granting to Distributor any right
      or
      authority to assume or to create any obligation or responsibility, express
      or
      implied, for or on behalf of or in the name of CTC.

    

    15.2 Notices.
      All
      notices and other communications required or desired to be given or sent by
      one
      party to the other party (“Notice”)
      shall
      be in writing, in the English language, and shall be deemed to have been
      given:

    

    (i)
      on
      the
      date of delivery, if delivered to the persons identified below;

    

    
      
         

      

      
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    (ii)
      ten
      (10)
      calendar days after mailing if mailed, with proper postage, by certified or
      registered airmail, postage prepaid, return receipt requested, addressed as
      set
      forth below;

    

    (iii)
      on
      the
      date of receipt if sent by telex or telecopy, and confirmed in writing in the
      manner set forth in on or before the next day after the sending of the telex
      or
      telecopy; or

    

    (iv)
      two
      business days after delivered to an internationally recognized overnight courier
      service marked for overnight delivery as follows:

    

    If
      to
      CTC, to:

    

    CTC
      Cable Corporation

    2026
      McGaw Avenue

    Irvine,
      CA 92614

    Attention: The
      President

    Telephone: +1-949-428-8500

    Facsimile: +1-949-428-8515

    

    

    

    If
      to
      Distributor, to:

    

    Far
      East Composite Technology Co. Ltd 

    #200
      Fanxing Rd. Gaocheng Town 

    Yixing
      City, Jiangsu 214257, PRC 

    Attention: General
      Manager

    Telephone: +86-0510-87242005

    +86-0510-87243002

    Facsimile: +86-0510-87242005

    +86-0520-87243002

    

    Either
      Party may change its address for notification purposes provided it gives Notice
      of such change in accordance with this Article. 

    

    15.3 Waiver;
      Unenforceability.
      Failure
      by either Party to enforce any of the provisions of the Agreement shall not
      be
      construed as a waiver of such provisions. If any of the provisions of this
      Agreement are held unlawful or otherwise ineffective by a court of competent
      jurisdiction, the remainder of the Agreement shall remain in full
      force.

    

    
      
         

      

      
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        r2r

       

    

    15.4 Exhibits.
      The
      Exhibits hereto form part of this Agreement.

    

    15.5 Entire
      Agreement.
      The
      Parties hereto acknowledge that each has read this Agreement, understands it,
      and agrees to be bound by its terms. The Parties further agree that this
      Agreement and any modifications made pursuant to it, constitute the complete
      and
      exclusive written expression of the terms of the Agreement between the Parties,
      and supersedes all prior or contemporaneous proposals, understandings,
      representations, conditions, warranties, covenants, and all other communications
      between the Parties relating to the subject matter of this Agreement, whether
      oral or written. The Parties further agree that this Agreement may not in any
      way be explained or supplemented by a prior or existing course of dealing
      between the Parties, by any usage of trade or custom, or by any prior
      performance between the Parties pursuant to this Agreement or
      otherwise.

    

    15.6 Binding
      force and benefit; assignment.
      This
      Agreement shall be binding upon and inure to the benefit of the Parties, their
      successors and permitted assigns. Neither Party may assign this Agreement
      without the prior written consent of the non-assigning Party.

    

    15.7 Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed to be an original, but all of which together shall constitute one and
      the
      same agreement.

    

    

    IN
      WITNESS WHEREOF,
      the
      Parties have caused this Agreement to be executed by their duly authorized
      representatives signing here below, effective as from the Effective
      Date:

    

    

    

    
      	
              For:

            	
              CTC
                Cable Corporation

            	 	
              For:

            	
              Far
                East Composite Technology Co. Ltd

            
	 	 	 	 	 
	 	 	 	 	 
	 	
              /s/
                Marvin W. Sepe

            	 	 	
              /s/
                Jiang Huajun

            
	
              By:

            	
              Marvin
                W. Sepe

            	 	
              By:

            	
              Jiang
                Huajun

            
	 	
              President

            	 	 	
              General
                Manager

            

    

     

     

    
      
         

      

      
        Page
          24

        
          

        

      

      
         

      

    

     

       

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        Copy
        r2r

       

    

    CTC
      Cable ACCC Conductor Distribution Agreement

    

    Exhibit
      A

    Territory
      Definition

    

    

    For
      purposes of this Agreement, Territory shall be the Provinces and Municipalities
      specifically identified in this Exhibit A. The Distributor shall have sole
      rights to distribute any of CTC Cable ACCC Conductor in the following Provinces
      and Municipalities in the People’s Republic of China on an exclusive basis. The
      Territory shall be subject to any enlargement agreed upon between the Parties.
      The Distributor may distribute or sell CTC Cable ACCC Conductor outside of
      this
      area in China on a non-exclusive basis. The Distributor may not promote,
      distribute or sell CTC ACCC Conductor or ACCC Accessories outside of China
      without the prior approval of CTC.

    

    Provinces

    

    Shanghai

    Zhejiang

    Sichuan

    Hubei

    Jiangxi

    Anhui

    Guangxi

    Shandong

    Hunan

    Hainan

    

    If
      Distributor is successful in securing a Purchase Order for ACCC Conductor from
      a
      power bureau, utility, power infrastructure provider or any other Customer
      in a
      province outside of the provinces listed above, Distributor may request and
      CTC
      shall consent that CTC include the particular power bureau, utility, power
      infrastructure provider or such other Customer in the exclusive relationships
      assigned to Distributor. CTC must approve the inclusion of the agency in writing
      to Distributor.

    

    Distributor
      defines the four companies which had established business relationships,
      including:

    

    Jiangsu
      Province Electric Power Co., Ltd.

    Fujian
      Province Electric Power Co., Ltd. 

    Liaoning
      Province Electric Power Co., Ltd. 

    Guangdong
      Province Electric Power Co., Ltd.
      

     

    
      
         

      

      
        Page
          25

        
          

        

      

      
         

      

    

     

    Execution
      Copy
      r2r

    CTC
      Cable ACCC Conductor Distribution Agreement

    

    Exhibit
      B

    Specifications

    

    

    Specifications
      describing the Products included in this Agreement are included
      herein.

    

    CABLE
      DATA SHEETS PROVIDED SEPARATELY

    

    
      
         

      

      
        Page
          26

        
          

        

      

      
         

      

    

     
       

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    CTC
      Cable ACCC Conductor Distribution Agreement

    

    Exhibit
      C

    Minimum
      Sales and Purchases

    

    

    The
      principal terms of the Minimum purchase requirements set forth in Article 5.1
      are as follows: 

    

    
      	
              a)

            	
              Subject
                to specific Purchase Order of every round of Products sale and Article
                6.0
                hereof, the ACCC Cable or ACCC Core type required by Distributor
                shall be
                shipped to Distributor within 100 days after the price offered by
                CTC has
                been accepted by Distributor; 

            

    

    

    
      	b)	
              Distributor
                may buy any of the available ACCC Cable sizes or ACCC Core (when
                Far East
                completes the Stranding Qualification Agreement and the Minimum Purchase
                Requirements).

            

    

    

    
      	
              c)

            	
              Quantities
                to be delivered in any calendar quarter may consist of more than
                one ACCC
                Cable type or ACCC Core type as long as the total ACCC cable or ACCC
                Core
                to be delivered is not less than six hundred (600) km in total length
                for
                the first year, and if the term of this Agreement is extended in
                accordance with Article 11.1 of this Agreement, nine hundred (900)
                km per
                quarter for the second year and one thousand and two hundred (1200)
                km per
                quarter for the third year.

            

    

    

    
      
         

      

      
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          27

        
          

        

      

      
         

      

    

     

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    CTC
      Cable ACCC Conductor Distribution Agreement

    

    Exhibit
      D

    Standard
      Payment Terms

    

    

    Standard
      payment terms shall be as follows:

    

    
      	
              Item

            	
              When
                Due

            	
              Amount
                Due

            
	
              ACCC
                Conductor and ACCC Accessories

            	
              Order
                Placement

            	
              [ ***]
                of
                the total order value for ACCC Conductor and Accessories down payment
                by
                wire transfer to CTC account.

            
	 	
              30
                Calendar Days After Order Placement

            	
              [***]
                of the total order value for ACCC Conductor and Accessories incremental
                payment by wire transfer to CTC account.

            
	 	
              Shipment

            	
              Balance
                due by Documentary Letter of Credit. Documents will be presented
                for
                payment upon loading of the ship and creation of the Bill of
                Lading

            
	
              Technical
                Assistance at CTC Offices

            	
              Net
                15 Days After Invoice Submitted to Distributor

            	
              Full
                amount due by Wire Transfer 

            
	
              Power
                Line Analysis/ Installation Support in the Field

            	
              Net
                15 Days After Invoice Submitted to Distributor

            	
              Full
                amount due by Wire Transfer

            

    

     

    
      
        

      

      [***]This
        material has been omitted pursuant to a request for confidential treatment
        and
        filed separately with the Securities and Exchange Commission.

       

    

    
      
         

      

      
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          28

        
          

        

      

      
         

      

    

     

       

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    CTC
      Cable ACCC Conductor Distribution Agreement

    

    Exhibit
      E

    Technical
      Assistance from CTC

    

    

    During
      the course of this Agreement Distributor may need technical assistance from
      CTC
      for the promotion, specification, use, or installation of the Product. CTC
      will
      make appropriate personnel and resources available to Distributor as needed
      and
      will provide documentation and collateral materials as requested to advance
      the
      sale and adoption efforts of the Product in Distributor’s territory.

    

    Technical
      assistance is available from CTC per the following schedule:

    

    
      	
              Assistance

            	
              Rate

            	
              Comment

            
	
              Power
                Line Analysis Tool (PLAT) Services

            	
              $125.00
                per hour

            	
              Up
                to 8 hours support provided with each PO at no charge

            
	
              PLS
                - CADD Support

            	
              $125.00
                per hour

            	
              Up
                to 8 hours support provided with each PO at no charge

            
	
              Power
                line analysis - on site

            	
              $1000.00
                per day

            	
              Plus
                travel and expenses

            
	
              ACCC
                Cable Installation Support - on site

            	
              $1000.00
                per day

            	
              Plus
                travel and expenses

            

    

    

    Technical
      assistance will be billed directly to Distributor. Payment terms shall be Net
      15
      days by Wire Transfer to CTC.

    

    
      
         

      

      
        Page
          29

        
          

        

      

      
         

      

    

     

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    CTC
      Cable ACCC Conductor Distribution Agreement

    

    Exhibit
      F

    Reel
      Specification and Handling

    

    

    Specific
      reels sizes and handling are required for the Product. CTC ships finished ACCC
      Conductor on steel reels or wooden reels. Steel reels provide superior support,
      strength, and a true spindle hole for mounting on installation equipment,
      however properly configured and maintained wood reels are suitable for nearly
      all applications. Wood reels will be properly treated per ISPM 15 requirements.
      The appropriate reel size and center diameters must be adhered to at all times.
      If the ACCC Cable is re-spooled to another reel, it is critical that the
      appropriate size reel and center spool diameters be maintained. The following
      table defines the appropriate reel sizes for each ACCC Cable size.

    

    
      	
              Conductor
                Name

            	
              Kcmil
                / mm2

            	
              Steel
                Reel 

              Flange
                

              Diameter
                (inches)

            	
              Minimum

              Center
                Hub Diameter of Steel Reel (inches)

            	
              Recommended

              Center
                Hub Diameter of Wooden Reel(inches)

            
	
              Penguin

            	
              TBD

            	
              78

            	
              36

            	
              42

            
	
              Linnet

            	
              431
                / 220 

            	
              78

            	
              36

            	
              42

            
	
              Hawk

            	
              611
                / 310

            	
              78

            	
              36

            	
              42

            
	
              Dove

            	
              713
                / 360

            	
              78
                to 90

            	
              36
                to 42

            	
              42

            
	
              Grosbeak

            	
              816
                / 410

            	
              78
                to 90

            	
              36
                to 42

            	
              42

            
	
              Drake

            	
              1020
                / 520

            	
              90

            	
              42

            	
              45

            
	
              Cardinal

            	
              1222
                / 620

            	
              90
                to 96

            	
              42
                to 45

            	
              45

            
	
              Bitttern

            	
              1572
                / 795

            	
              96

            	
              45

            	
              50

            
	
              Lapwing

            	
              1966
                / 995

            	
              96

            	
              45

            	
              50

            
	
              Chukar

            	
              2242
                / 1135

            	
              96

            	
              45

            	
              50

            
	
              Bluebird

            	
              2727
                / 1380

            	
              96

            	
              45

            	
              50

            
	
              Custom
                Conductor

            	
              TBD

            	
              TBD

            	
              TBD

            	
              50

            

    

    

    The
      center hub diameter of reel of ACCC Core shall not less than corresponding
      the
      center hub diameter of reel of ACCC Conductor specification.

     

    
      
         

      

      
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          30

        
          

        

      

      
         

      

    

     

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      Cable ACCC Conductor Distribution Agreement

    

    Exhibit
      G

    Product
      Handling and Storage

    

    

    SPECIFICATION
      PROVIDED SEPARATELY

    

    
      
         

      

      
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          31

        
          

        

      

      
         

      

    

     

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      Cable ACCC Conductor Distribution Agreement

    

    Exhibit
      H

    Installation
      Guidelines

     

    
      
         

      

      
        Page
          32

        
          

        

      

      
         

      

    

     

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    CTC
      Cable ACCC Conductor Distribution Agreement

    

    Exhibit
      I

    Product
      Pricing

    

    

    The
      following pricing applies to Product supplied under this Agreement. [ ***]
      and is
      only valid under the terms of this Agreement. 

    

    [***]
      may
      be earned by exceeding the amount of Product required to be purchased in any
      yearly period. An additional [***] will be applied to the quantity in excess
      of
      the total quantity of ACCC Conductor required to be purchased each month times
      twelve months, nominally twenty four hundred (2400) kilometers for Year One.
      [***] will be set once the yearly quantity is exceeded.

    

    
      	
              Conductor
                Name

            	
              Kcmil
                / mm2

            	
              Price
                per meter of ACCC Conductor

              ($)

            	
              Single
                Terminal Pad Deadend Assembly

              ($)

            	
              Splice
                Assembly

              ($)

            
	
              Penguin

            	
              TBD

            	
              TBD

            	
              TBD

            	
              TBD

            
	
              Linnet

            	
              431
                / 220

            	
              [***]

            	
              [***]

            	
              [***]

            
	
              Hawk

            	
              611
                / 310

            	
              [***]

            	
              [***]

            	
              [***]

            
	
              Dove

            	
              713
                / 360

            	
              [***]

            	
              [***]

            	
              [***]

            
	
              Grosbeak

            	
              816
                / 410

            	
              [***]

            	
              [***]

            	
              [***]

            
	
              Drake

            	
              1020
                / 520

            	
              [***]

            	
              [***]

            	
              [***]

            
	
              Cardinal

            	
              1222
                / 620

            	
              [***]

            	
              [***]

            	
              [***]

            
	
              Bittern

            	
              1572
                / 795

            	
              [***]

            	
              [***]

            	
              [***]

            
	
              Lapwing

            	
              1966
                / 995

            	
              [***]

            	
              TBD

            	
              TBD

            
	
              Chukar

            	
              2242
                / 1135

            	
              [***]

            	
              TBD

            	
              TBD

            
	
              Bluebird

            	
              2727
                / 1380

            	
              [***]

            	
              TBD

            	
              TBD

            
	
              Custom
                Conductor

            	
              TBD

            	
              TBD

            	
              TBD

            	
              TBD

            

    

    

      
        
          

        
[***]This
        material has been omitted pursuant to a request for confidential treatment
        and
        filed separately with the Securities and Exchange
        Commission.

    
      
         

      

      
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          33

        
          

        

      

      
         

      

    

     

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      Cable ACCC Conductor Distribution Agreement

    

    Exhibit
      J

    Taxes
      Applicable to Distributor

    

    

    TO
      BE
      DETERMINED BY BOTH PARTIES

    

    
      
         

      

      
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          34

        
          

        

      

      
         

      

    

     

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      Cable ACCC Conductor Distribution Agreement

    

    Exhibit
      K

    Standard
      for Distributor’s Inspection of Products

    

    Distributor
      should inspect the following items:

    

    1.
      Package: outside wrapping; wood reel or steel reel; protection packing shall
      be
      intact.

    

    2.
      The
      inside packing case has product certificate including Manufacture Time, Batch
      No., Executable Standard Specification and Quality Standards and correlation
      marking including specification, weight, quantity, length, hoisting up
      marking.

    

    3.
      Distributor shall inspect ACCC Conductor’s diameter which must be in accordance
      with Distributor’s requirement.

    

    4. All
      Products must seal the packing, and also the Products must accord with the
      packing standard of US export and the packing standard of Chinese
      import.

    

    5.
      Sample
      Inspection for ACCC Core. Tests include Appearance, Tensile Strength, Roller
      Bend, Shear Resistance and some correlative tests.

     

     

    
 

    Page
      35Exhibit 10.1

 

ALLIANCE FINANCIAL CORPORATION

 

RESTRICTED STOCK AGREEMENT

 

This sets forth the terms of the RESTRICTED STOCK AGREEMENT (“Agreement”), entered into as of the 30th day of January 2007, by and between ALLIANCE FINANCIAL CORPORATION (“Company”) and Jack H. Webb, an employee of the Company or one of its subsidiaries (“Grantee”).

 

TERMS

 

1.          Definition of Terms.  For purposes of this Agreement, all defined terms, as indicated by the capitalization of the first letter of such term, shall have the meanings specified in the Alliance Financial Corporation 1998 Long Term Incentive Compensation Plan (“Plan”) to the extent not specified in this Agreement. 

 

2.          Restricted Stock Grant.  Pursuant to the Plan and subject to the terms and conditions of the Plan and this Agreement, the Company hereby grants to the Grantee, and the Grantee accepts, 2000 shares of Common Stock of the Company (“Restricted Stock”). 

 

3.          Restrictions.  The shares of Restricted Stock are awarded to the Grantee on the condition that the Grantee remain in the employment of the Company or its subsidiaries during the Forfeiture Periods described below.

 

a.            The Forfeiture Period for all of the shares of Restricted Stock awarded pursuant to this Agreement shall expire on the seventh anniversary of the date of this Agreement.  If the foregoing date occurs on a date that is not a normal business day of the Company, the date shall be deemed to occur on the next ensuing normal business day of the Company.

 

b.            During the Forfeiture Period, the shares of Restricted Stock may not be sold, exchanged, transferred, pledged, hypothecated, or otherwise disposed of, and the Grantee agrees not to sell, exchange, transfer, pledge or otherwise dispose of any of such shares, or attempt to do so, during the Forfeiture Period.

 

4.          Termination.  Except as provided in paragraphs 4(a), (b), (c) and (d) below, if the Grantee’s employment with the Company (or its subsidiaries) terminates prior to the expiration of the Forfeiture Period, the Grantee shall, on the date employment terminates, forfeit and surrender 

 

to the Company the number of shares of Restricted Stock with respect to which the Forfeiture Period is in effect on the date employment terminates.

 

a.            If the Grantee dies, or terminates employment with the Company (or its subsidiaries) because of disability, before the expiration of the Forfeiture Period, the Forfeiture Period on the Restricted Stock granted pursuant to this Agreement shall expire on the date of death, or on the date that employment terminates because of disability, provided such date is not less than four years subsequent to the date of this Agreement.  If the date of death or disability is within four years of the date of this Agreement, the Board of Directors, in its sole discretion, may waive the Forfeiture Period as to any or all of the Restricted Stock. 

 

b.            If the Grantee’s employment with the Company (or its subsidiaries) terminates prior to the expiration of the Forfeiture Period as a result of the Grantee’s planned retirement in good standing, as determined by the Board of Directors in its sole discretion, the Forfeiture Period on the Restricted Stock granted pursuant to this Agreement shall expire on the date of such approved planned retirement.

 

c.            If the Grantee’s employment with the Company (or its subsidiaries), or the successor of the Company (or its subsidiaries), terminates prior to the expiration of the Forfeiture Period as a result of a termination of the Grantee’s employment for “Good Reason” within 12 months after a “Change of Control” of the Company, the Forfeiture Period on the Restricted Stock granted pursuant to this Agreement shall expire on the date of such termination.  For purposes of this paragraph 4(c), “Good reason” and “Change of Control” shall have the meanings below.

 

i.             “Good Reason” shall mean a termination that is the direct result of an involuntary and material change in the Grantee’s title, duties, responsibilities and/or total compensation and benefits from the Company (or its subsidiaries), or the successor of the Company (or its subsidiaries).

 

	
             
 	
            ii.
 	
            A “Change of Control” shall be deemed to have occurred if:
 

 

A.           any “person,” including a “group” as determined in accordance with the Section 13(d)(3) of the Securities Exchange Act of 1934 (“Exchange Act”), is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing 30 percent or more of the combined voting power of the Company’s then outstanding securities;

 

B.           as a result of, or in connection with, any tender offer or exchange offer, merger or other business combination (a “Transaction”), the persons who were directors of the Company before the Transaction shall cease to constitute a majority of the Board of Directors or the board of directors of any successor to the Company;

 

C.           the Company is merged or consolidated with another corporation and as a result of the merger or consolidation less than 70 percent of the outstanding voting securities of the surviving or resulting corporation shall then be owned in the aggregate by the former stockholders of the Company, other than (A) affiliates within the meaning of the Exchange Act, or (B) any party to the merger or consolidation;

 

D.           a tender offer or exchange offer is made and consummated for the ownership of securities of the Company representing 30 percent or more of the combined voting power of the Company’s then outstanding voting securities; or

 

E.           the Company transfers substantially all of its assets to another entity that is not owned or controlled by the Company.

 

d.            Notwithstanding the forgoing, the Board of Directors shall have the authority at any time to accelerate the time at which any or all or the restrictions set forth in this Agreement with respect to any or all shares of the Restricted Stock granted pursuant to under this Agreement shall expire.

 

5.          Escrow.  The certificate(s) of Restricted Stock granted to the Grantee shall be retained in escrow by the Company (or its designee) until the expiration of the Forfeiture Period, at which time(s) certificate(s) without any restrictive legend affixed thereto shall be delivered by the Company (or its designee) to the Grantee.  If shares of Restricted Stock are forfeited, the applicable certificate(s) of Restricted Stock shall be canceled of record.

 

6.          Incidents of Ownership.  During the Forfeiture Period, the Grantee shall have all the rights of a shareholder with respect to shares of Restricted Stock, including the right to vote such shares at any meeting of shareholders of Common Stock and the right to receive all dividends paid with respect to such shares, subject, however, to the restrictions set forth in this Agreement.

 

7.          Internal Revenue Code Section 83(b) Election.  The Grantee agrees, as a term and condition of receiving and accepting shares of Restricted Stock pursuant to this Agreement, not to make an election under Section 83(b) of the Internal Revenue Code of 1986, as amended, with respect to such shares of Restricted Stock.  If the Grantee or his legal representative makes such an election without the consent of the Company, all shares of Restricted Stock held by the Grantee or his legal representative at the time shall be forfeited and canceled of record.

 

8.            Adjustments.  In the event of a reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation, rights offering, or any other change in the corporate structure or shares of the Company, the Board of Directors may make such adjustment equitably required in the number and kind of shares of Restricted Stock issued 

 

pursuant to this Agreement.  Such adjustment shall be final and binding on the Company and the Grantee.

 

9.          No Right To Continued Employment.  This Agreement shall not confer upon the Grantee any right to continued employment with the Company (or its subsidiaries) nor shall it interfere, in any way, with the right of the Company to modify the Grantee’s compensation, duties, and responsibilities, or the Company’s authority to terminate the Grantee’s employment.

 

10.        Withholding.  The Company shall have the right to deduct any sums that federal, state or local tax laws require to be withheld upon the grant of Restricted Stock or upon the expiration of a Forfeiture Period.  In the alternative, the Grantee may pay to the Company for deposit with the appropriate taxing authority, any amounts that federal, state or local tax laws require to be withheld upon the grant of Restricted Stock or upon the expiration of a Forfeiture Period.

 

11.        Notices.  All notices and communications under this Agreement shall be in writing and shall be given by personal delivery or by registered or certified mail, return receipt requested, addressed to the residence of the Grantee and to the principal office of the Company, or such other address as may be designated by the Company or the Grantee.  Notice shall be deemed given upon personal delivery or upon receipt.

 

12.        Successors and Assigns.  This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the Company, and the heirs, successors and permitted assigns of the Grantee.

 

13.        Governing Law.  This Agreement shall be construed in accordance with the laws of the State of New York.  The Grantee agrees to accept as binding, conclusive and final all decisions and interpretations of the Board of Directors with respect to any questions that may arise under the Plan and this Agreement.

 

14.        Acknowledgments by Grantee.  The Grantee acknowledges that the Grantee has been advised, and that the Grantee understands, that:

 

a.            This document constitutes part of a prospectus covering securities that have been registered under the Securities Act of 1933;

 

b.            the grant of Restricted Stock pursuant to this Agreement may be subject to, or may become subject to, applicable reporting, disclosure and holding period restrictions imposed by Rule 144 under the Securities Act of 1933 and Section 16 of the Securities Exchange Act of 1934 (“Section 16”); and

 

c.            shares could be subject to Section 16(a) reporting requirements as well as the short swing trading prohibition contained in Section 16(b) which precludes any profit taking 

 

with respect to any stock transactions which occur within any six-month period.

 

The Company has caused this Restricted Stock Agreement to be executed by its duly authorized officer, and the Grantee has executed this Agreement, both as of the day and year first written above.

 

ALLIANCE FINANCIAL CORPORATION

 

 

By: /s/ J. Daniel Mohr

	
             
 	
            J. Daniel Mohr
 

Title: Treasurer & Chief Financial Officer

 

 

GRANTEE

 

 

/s/ Jack H. Webb

	
             
 	
            Jack H. Webb

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