Document:

Wangkeng Hydroelectric Station Power Purchase and Sale Contract 

Exhibit 4.108

Fujian Province
Electric Power Co., Ltd.

(as Buyer) 

and 

Pingnan County Wangkeng
Hydroelectric Co., Ltd. 

(as Seller)

Wangkeng Hydroelectric Station

Power Purchase
and Sale Contract

Date: 28 June 2010

	
  

 	
  

 	
  

 
	
 Content

 
	
  

 	
  

 	
  

 
	
 1

 	
 Definition and Interpretation

 	
 4

 
	
  

 	
  

 	
  

 
	
 2

 	
 Representations of Each Party

 	
 5

 
	
  

 	
  

 	
  

 
	
 3

 	
 Obligations of Each Party

 	
 5

 
	
  

 	
  

 	
  

 
	
 4

 	
 Purchase and Sale of Electric Quantity

 	
 6

 
	
  

 	
  

 	
  

 
	
 5

 	
 On-grid Tariff

 	
 6

 
	
  

 	
  

 	
  

 
	
 6

 	
 Power Measurement

 	
 6

 
	
  

 	
  

 	
  

 
	
 7

 	
 Electric Quantity
 Measurement

 	
 8

 
	
  

 	
  

 	
  

 
	
 8

 	
 Electricity Fees
 and Payment Settlement

 	
 8

 
	
  

 	
  

 	
  

 
	
 9

 	
 Force Majeure

 	
 10

 
	
  

 	
  

 	
  

 
	
 10

 	
 Non-plan Shutdown

 	
 11

 
	
  

 	
  

 	
  

 
	
 11

 	
 Default Liability

 	
 11

 
	
  

 	
  

 	
  

 
	
 12

 	
 Effectiveness and
 Term of the Contract

 	
 11

 
	
  

 	
  

 	
  

 
	
 13

 	
 Applicable Law

 	
 12

 
	
  

 	
  

 	
  

 
	
 14

 	
 Alteration, Transfer and Termination of the Contract

 	
 12

 
	
  

 	
  

 	
  

 
	
 15

 	
 Dispute Settlement

 	
 12

 
	
  

 	
  

 	
  

 
	
 16

 	
 Miscellaneous

 	
 13

 

2

Power Purchase and Sale Contract

This Power Purchase and Sale
Contract, (hereinafter the “Contract”)
is entered into by and between the following two parties:

The Buyer: Fujian Province Electric Power Co., Ltd., a
power grid operation enterprise registered with Fujian Provincial
Administration for Industry and Commerce. It has obtained the power supply
business permit (Permit No. 3041908-0003) issued by the State Electricity
Regulatory Commission; its tax registration No. is 350103158142631; its
domicile address is No.257 Wusi Road, Fuzhou City, Fujian Province; its legal
representative is Li Weidong.

The Seller: Pingnan County Wangkeng Hydroelectric Co., Ltd.,
a power generation enterprise with legal person status. It was established by
the approval document (Min Ji Ji Chu [2002] No. 130) of Fujian Provincial
Development and Planning Commission, and registered with Fujian Provincial
Administration for Industry and Commerce. It has obtained the power generation
permit (Permit No. 1041906-00015) issued by the State Electricity Regulatory
Commission; its tax registration No. is 350923738029694; its domicile address
is 5/F. Cuibai Building, Chengguan, Pingnan County, Fujian Province; its legal
representative is John Douglas Kuhns.

The two Parties have provided the following
contact addresses and the bank account information:

Buyer: Fujian Province Electric Power Co.,
Ltd.

Address: No.257 Wusi Road, Fuzhou City,
Fujian Province

Postal Code: 350003

Attention: General Manager Office

Fax: 0591-87555121

Tel: 0591-87076116 (General Manager
Office), 87076575 (trading center)

Name in the Bank Account: Fujian Province
Electric Power Co., Ltd.

Account Bank: North Wusi Road sub-branch,
Fuzhou, Industrial and Commercial Bank of China

Account No.: 1402013209003420270

Seller: Pingnan County Wangkeng
Hydroelectric Co., Ltd.

Address: 5/F. Cuibai Building, Chengguan,
Pingnan County, Fujian Province

Postal Code: 352300

Attention: Wu Zongcan

Tel: 0593-3385938

Fax: 0593-3332698

Name in the Bank Account: Pingnan County
Wangkeng Hydroelectric Co., Ltd.

Account Bank: Industrial Bank Co., Ltd.

Account No.: 131010100100106711

Whereas

3

	
  

 	
  

 
	
 (1)

 	
 The Seller owns, manages, operates and
maintains the Wangkeng Hydroelectric Station with total installed capacity of
40 MW at Wangkeng Village, Tangkou Township, Pingnan County of Fujian
Province (hereinafter the “Station”); 

 
	
  

 	
  

 
	
 (2)

 	
 The Station has been connected to the power
 grid managed and operated by the Buyer for operation.

 

Pursuant to the Contract Law of
the People’s Republic of China, Power Law of the People’s Republic of China,
Regulations for the Administration of Power Grid Dispatching and other state
laws and regulations, the two Parties have agreed to enter into this Contract
in the principle of equality, voluntariness, honesty and good faith.

	
  

 	
  

 	
  

 
	
 1

 	
 Definition and Interpretation

 
	
  

 	
  

 
	
 1.1

 	
 Unless otherwise required by the context, terms
 used in this Contract shall have the following meanings:

 
	
  

 	
  

 	
  

 
	
  

 	
 1.1.1

 	
 “Station” means the power generation
 facility with a total installed capacity of 40 MW (unit capacity is 20 MW;
 installed number of generators is 2, i.e., #1 unit and #2 unit) located at
 Wangkeng Village, Tangkou Township, Pingnan County of Fujian Province, and is
 owned, operated and managed by the Seller and all auxiliary facilities
 stretching to the property demarcation point. 

 
	
  

 	
  

 	
  

 
	
  

 	
 1.1.2

 	
 “Grid Connection and Dispatching Agreement”
 means the agreement in respect of connection of the power station to the
 power grid and power dispatching arrangement between the Buyer and the
 Seller.

 
	
  

 	
  

 	
  

 
	
  

 	
 1.1.3

 	
 “Buyer’s Reason” refers to the Buyer’s
 request or liability, including the liability for the expansion of an
 accident resulting from the Buyer’s failure to abide by the relevant state
 laws and regulations. 

 
	
  

 	
  

 	
  

 
	
  

 	
 1.1.4

 	
 “Seller’s Reason” refers to the Seller’s
 request or liability, including the liability for the expansion of an
 accident resulting from the Seller’s failure to abide by the relevant state
 laws and regulations.

 
	
  

 	
  

 	
  

 
	
  

 	
 1.1.5

 	
 “Emergency” means accidents occurred to the
 power grid, or material accidents occurred to the power generation and supply
 equipments; or power grid frequency or voltage exceeds the stipulated range;
 or the load for transmission or transformation exceeds stipulated value; or
 the capacity value of the trunk line exceeds the stipulated stability limit,
 or other events that may threaten safe operation of the power grid,
 jeopardize the stability of power grid, resulting in the collapse of the
 power grid, or power outage in a large area. 

 
	
  

 	
  

 	
  

 
	
  

 	
 1.1.6

 	
 “Business Day” means a calendar day other
 than the statutory public holidays. If a day agreed for payment is not a
 business day, then the immediate next business day of that date shall be the
 date of payment.

 
	
  

 	
  

 	
  

 
	
  

 	
 1.1.7

 	
 “Force Majeure” means any objective event
 that can not be foreseen, avoided and overcome, including volcano, twister,
 tidal wave, storm, mud-rock flow, mountainside slide, flood, fire, earthquake
 that exceeds the designed anti-earthquake standard, typhoon, lightning, fog
 flashover, etc., as well as nuclear radiation, war, epidemic, riot, etc. 

 
	
  

 	
  

 
	
 1.2

 	
 Interpretation

 
	
  

 	
  

 	
  

 
	
  

 	
 1.2.1

 	
 Headings in this Contract are for
 convenience only and shall not in any event affect the interpretation of this
 Contract.

 
	
  

 	
  

 	
  

 
	
  

 	
 1.2.2

 	
 The appendices to this Contract and the
 Contract itself shall have the same legal effect.

 

4

	
  

 	
  

 	
  

 
	
  

 	
 1.2.3

 	
 This Contract shall have binding effect on
 the legal assignee of either Party, provided otherwise agreed by the Parties.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In the event specified in this clause,
 relevant obligator shall perform necessary notification obligation and carry
 out all legal procedures according to law.

 
	
  

 	
  

 	
  

 
	
  

 	
 1.2.4

 	
 Unless the context otherwise requires, day,
 month or year referred to in this Contract shall all refer to the day, month
 or year of the Gregorian calendar.

 
	
  

 	
  

 	
  

 
	
  

 	
 1.2.5

 	
 “Including” in this Contract means
 including but not limited to.

 
	
  

 	
  

 	
  

 
	
 2

 	
 Representations of Each Party

 
	
  

 	
  

 
	
  

 	
 Each Party represents to the other Party
 that:

 
	
  

 	
  

 	
  

 
	
 2.1

 	
 It is an enterprise legally established and
 existing under the law, and has the power to execute and perform this
 Contract.

 
	
  

 	
  

 	
  

 
	
 2.2

 	
 It has completed all procedures (including
 procedures for obtaining the requisite approvals, business license and
 permits, etc., from the government) necessary for the execution and
 performance of this Contract, which are legal and effective.

 
	
  

 	
  

 	
  

 
	
 2.3

 	
 As of the date of execution of this
 Contract, no judgment, award, decision or any specific administrative action,
 which may have material adverse effects on the ability to perform this
 Contract, has been declared or taken by any court, arbitration organ,
 administrative authorities or regulatory agencies.

 
	
  

 	
  

 	
  

 
	
 2.4

 	
 It has completed all procedures for
 obtaining the internal authorizations necessary for the valid execution of
 this Contract. The signatory of this Contract shall be its legal
 representative or entrusted agent. Once this Contract comes into force, it
 shall have legal binding effect on both Parties.

 
	
  

 	
  

 	
  

 
	
 3

 	
 Obligations of Each Party

 
	
  

 	
  

 	
  

 
	
 3.1

 	
 The Buyer’s obligations shall include:

 
	
  

 	
  

 	
  

 
	
  

 	
 3.1.1

 	
 purchasing the power generated by the units
 of generators of the Seller in accordance with this Contract; 

 
	
  

 	
  

 	
  

 
	
  

 	
 3.1.2

 	
 abiding by the Grid Connection and
 Dispatching Agreement entered into by the Buyer and the Seller, operating and
 maintaining the power transmission and transformation facilities, ensuring
 safety of the power system and operating in an efficient and economical
 manner in accordance with the standards of the state and the power industry; 

 
	
  

 	
  

 	
  

 
	
  

 	
 3.1.3

 	
 performing power dispatching work and
 disclosing information in an open, fair and equitable manner in accordance
 with relevant state provisions, and providing information about the power
 load, back-up capacity, operation of transmission and transformation
 facilities, etc.; 

 
	
  

 	
  

 	
  

 
	
  

 	
 3.1.4

 	
 providing the power required for the
 restart of the units of generators of the Station to the Seller in accordance
 with the relevant state provisions or agreement between the Parties;

 
	
  

 	
  

 	
  

 
	
  

 	
 3.1.5

 	
 compensating the Seller for the reasonable
 costs incurred for its provision of support services with compensation as
 required in accordance with the relevant state provisions;

 
	
  

 	
  

 	
  

 
	
 3.2

 	
 The Seller’s obligations shall include:

 

5

	
  

 	
  

 	
  

 
	
  

 	
 3.2.1

 	
 selling power conforming to the standards
 of the state and the power industry to the Buyer;

 
	
  

 	
  

 	
  

 
	
  

 	
 3.2.2

 	
 abiding by the Grid Connection and
 Dispatching Agreement entered into by the Buyer and the Seller, submitting to
 the unified power dispatching, operating and maintaining the Station in
 accordance with the standards of the state, the power industry and the
 dispatching regulations, ensuring that the operating capacity of the
 generators reach the technical standards and provisions formulated by the
 relevant state authorities, maintaining safety of the power system and
 operating in an efficient and economical manner; 

 
	
  

 	
  

 	
  

 
	
  

 	
 3.2.3

 	
 providing reliability indicator of the set
 of generators and operation of the equipment of the Station to the Buyer on a
 monthly basis; reporting any equipment defects in a timely manner, regularly
 submitting the generators checking and repairing plan, and strictly observing
 the generators checking and repairing plan which has been uniformly arranged
 and balanced by the Buyer and agreed by both Parties;

 
	
  

 	
  

 	
  

 
	
  

 	
 3.2.4

 	
 compensating the Buyer for the reasonable
 costs incurred for its provision of support services with compensation as
 required in accordance with the relevant state provisions; 

 
	
  

 	
  

 	
  

 
	
  

 	
 3.2.5

 	
 not supplying power directly to users
 without approval of relevant state authorities.

 
	
  

 	
  

 	
  

 
	
 4

 	
 Purchase and Sale of Electric Quantity

 
	
  

 	
  

 	
  

 
	
 4.1

 	
 The total on-grid electric quantity shall
 be composed of the basic on-grid electric quantity and the on-grid electric quantity
 acquired by other ways of transaction.

 
	
  

 	
  

 	
  

 
	
  

 	
 4.1.1

 	
 Basic on-grid electric quantity

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The basic on-grid electric quantity refers
 to the electric quantity generated in accordance with the annual power
 generation adjustment plan and the moderation plan of the power
 administrative department at the provincial level, actual situation of the
 power grid and water volume from the power plant of the reservoir, and by
 following the principle of full utility of renewable energy.

 
	
  

 	
  

 	
  

 
	
  

 	
 4.1.2

 	
 On-grid electric quantity acquired by other
 ways of transaction

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The on-grid electric quantity acquired by
 other ways of transaction refers to the on-grid electric quantity determined
 by other transaction contracts entered into by the Buyer and the Seller in
 accordance with relevant provisions of the state or Fujian Province.

 
	
  

 	
  

 	
  

 
	
 5

 	
 On-grid Tariff

 
	
  

 	
  

 
	
 5.1

 	
 The on-grid tariff of the basic on-grid
 electric quantity shall be the tariff determined by the department that has
 the power to determine the tariff and in accordance with relevant provisions.

 
	
  

 	
  

 
	
 5.2

 	
 The on-grid tariff of the on-grid electric
 quantity acquired by other ways of transaction shall be the tariff agreed in
 relevant transaction contracts in accordance with relevant transaction rules,
 policies or provisions.

 
	
  

 	
  

 
	
 6

 	
 Power Measurement

 
	
  

 	
  

 
	
 6.1

 	
 Metering Point

 
	
  

 	
  

 
	
  

 	
 The on-grid and off-grid electric quantity
 metering points are located at the switch (11A) in the Wangkeng Station and
 the switch (14A) in Daixi Station. The diagram indicating the metering points
 in the Stations is attached as Schedule 1.

 
	
  

 	
  

 
	
 6.2

 	
 Electric Quantity Measuring Devices and
 Relevant Equipments

 

6

	
  

 	
  

 	
  

 
	
  

 	
 6.2.1

 	
 An electric quantity measuring device shall
 include the kilowatt-hour meter, voltage mutual inductor for measurement,
 current mutual inductor and second return circuit, electric quantity
 measurement container/screen/box, etc.

 
	
  

 	
  

 	
  

 
	
  

 	
 6.2.2

 	
 The electric quantity measuring devices
 shall be allocated in accordance with the requirements set out in the Electric
 Quantity Measuring Device Technical Management Regulations (DL/T448—2000).
 The second return circuit connecting terminal, the testing terminal and the
 electric quantity measurement container/screen/box of the electric quantity
 measuring device shall have the conditions to meet the requirement for
 sealing up. The second return circuit of the voltage mutual inductor shall
 not be inserted any auxiliary connection point of the partition switch, nor
 any voltage-compensating device of any kind.

 
	
  

 	
  

 	
  

 
	
  

 	
 6.2.3

 	
 The measurement of electric quantity shall
 be measured by the electronic multi-functional kilowatt-hour meter which shall
 have the bi-directional active power (accuracy degree is 0.2S and above) and
 4-motion-control inactive power (accuracy degree is 2.0) measuring functions.
 Technical functions of the kilowatt-hour meters shall conform to the relevant
 standards and technical specifications of the state and the power industry,
 and at the same time have such functions for the settlement of tariff as
 back-up electric source, standard communication interface, recording of
 losing voltage, recording of losing voltage time, time comparison recording
 of events, etc. The kilowatt-hour meter shall also the functions of local
 data communication (or through electric energy remote terminal) and remote
 transmission, and be able to connect the management system of the Buyer’s
 electric quantity information collection centre.

 
	
  

 	
  

 	
  

 
	
  

 	
 6.2.4

 	
 Prior to the operation of the electric
 quantity measuring device, the owner of such device shall engage a qualified
 electric quantity measuring inspector acceptable to both Parties to conduct a
 technical inspection on its technical functions and management situation. It
 shall then undergo the acceptance inspection by the Parties in accordance
 with Clause 6.2.2. An electric quantity measuring device failing to pass the
 acceptance inspection shall not be put into use.

 
	
  

 	
  

 	
  

 
	
  

 	
 6.2.5

 	
 The electric quantity measuring device
 shall be inspected and tested by a qualified electric quantity measuring
 inspector acceptable to both Parties. Once the inspection is passed, such
 device shall be sealed with a sealing slip, affixed with official seal or
 sealed up by other means. No Party shall be allowed to willfully break the
 seal, making changes to the measuring device or replace components of the
 measuring device. If a Party desires to make technical renovation to the
 device, it shall obtain the consent of the other Party. The renovation may
 take place only when representatives of both Parties are present on the spot.
 It can be put into use only when it has passed the acceptance inspection in
 accordance with Clause 6.2.4.

 
	
  

 	
  

 	
  

 
	
  

 	
 6.2.6

 	
 The Seller shall establish electric
 quantity checking points at the switch (61A) of the Wangkeng Station and the
 switch (64A) of Daixi Station respectively. The configuration of the electric
 quantity measuring device for the checking purpose shall follow the technical
 requirements of the electric quantity measuring device at the gateways.

 
	
  

 	
  

 	
  

 
	
  

 	
 6.2.7

 	
 If an electric quantity measuring device
 fails to meet the technical specifications due to historical reasons,
 technical measures shall be taken to improve it. Once improved, an
 application, together with the diagram of the improved device at the gateway,
 shall be filed for conducting an acceptance inspection.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Defects with the electric quantity
 measuring device at the gateway and the renovation requirement is attached
 herein as Schedule 4.

 
	
  

 	
  

 	
  

 
	
 6.3

 	
 The Seller shall bear the costs for the
 purchase, installation, commissioning of the gateway electric quantity
 measuring device, and be responsible for the daily management and
 maintenance. If a gateway electric quantity measuring device is used for both
 on-grid electric quantity measurement and the grid-supply electric quantity
 measurement, the Buyer shall render assistance with daily management and
 maintenance.

 

7

	
  

 	
  

 	
  

 
	
 6.4

 	
 Inspection and operation management of
 electric quantity measuring device

 
	
  

 	
  

 	
  

 
	
  

 	
 6.4.1

 	
 The first inspection, periodic inspection
 (by turn) and periodic on-spot inspection of electric quantity measuring
 devices as well as trouble clearing shall be conducted by a qualified
 electric quantity measurement inspector appointed jointly by the Parties. The
 first inspection, periodic inspection (by turn) and periodic on-spot
 inspection of electric quantity measuring devices as well as trouble clearing
 shall be conducted in accordance with relevant standards, rules and
 regulations of the state and the power industry. Costs incurred shall be
 borne by the Seller.

 
	
  

 	
  

 	
  

 
	
  

 	
 6.4.2

 	
 Either Party may, at any time, request an
 additional inspection or test of an electric quantity measuring device apart
 from the periodic or periodic on-spot inspections. Such inspection or test
 shall be conducted by a qualified electric quantity measurement inspector
 acceptable to both Parties. If the inspection or test shows that the range of
 error of the electric quantity measuring device fails to meet the
 requirements, the costs incurred shall be borne by the Seller; in case the
 range of error of the electric quantity measuring device meets the
 requirements, the costs incurred shall be borne by the Party requesting for
 the additional inspection or test.

 
	
  

 	
  

 
	
 6.5

 	
 Addressing of abnormal measurement

 
	
  

 	
  

 
	
  

 	
 Whenever a Party is aware that an electric
 quantity measuring device provides inaccurate or abnormal readings, or it
 occurs breakdown, which affects the measurement of electric quantity, it
 shall immediately notify the other Party and a qualified electric quantity
 measurement inspector acceptable to both Parties to jointly locate the defect
 and restore its normal measurement function as soon as possible. The Parties
 may determine the electric quantity according to the electric quantity
 measured at the electric quantity checking points net the line loss quantity
 (the line loss quantity is calculated by making reference to the line loss
 quantity normally occurred to the same amount of electric quantity). If there
 is no sufficient basis to determine the electric quantity occurred during the
 period of breakdown or measurement inaccuracy, it shall be separately
 determined by the Parties through consultations. 

 
	
  

 	
  

 
	
 7

 	
 Electric Quantity
 Measurement

 
	
  

 	
  

 
	
 7.1

 	
 Electric Quantity Measurement

 
	
  

 	
  

 
	
  

 	
 According to the Agreement entered into by Ningde Electric Power
 Industry Bureau, Pingnan County Wangkeng Hydroelectric Co., Ltd. and Fujian
 Tongda Hydroelectric Co., Ltd. on 30 March 2010 (see Schedule 3), on-grid
 electric quantity of Daixi Power Station = 14A - 14A*2.2%
 electric quantity transmitted to the grid

 
	
  

 	
  

 
	
  

 	
 Daixi power station grid supply electric quantity = 14A grid inverse
 electric quantity

 
	
  

 	
  

 
	
  

 	
 Wangkeng Station on-grid electric quantity = 11A - 11A*2.2%
 electric quantity transmitted to the grid

 
	
  

 	
  

 
	
  

 	
 Wangkeng Station grid supply electric quantity = 11A grid inverse
 electric quantity

 
	
  

 	
  

 
	
 8

 	
 Electricity Fees
 and Payment Settlement

 
	
  

 	
  

 
	
 8.1

 	
 Electricity Fees Calculation

 
	
  

 	
  

 	
  

 
	
  

 	
 8.1.1

 	
 All fees between both Parties shall be
 denominated and paid in RMB.

 
	
  

 	
  

 	
  

 
	
  

 	
 8.1.2

 	
 On-grid electricity fees

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The on-grid electricity feesshall be calculated according to the
 formula below:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 On-grid electricity fees = On-grid electric quantity × corresponding
 on-grid tariff

 

8

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 On-grid electric quantity and corresponding on-grid tariff shall be
 determined according to Clause 7 and Clause 5 of this Contract.

 
	
  

 	
  

 	
  

 
	
 8.2

 	
 Settlement Procedures of On-grid Electric Quantity and Electricity
 Fees

 
	
  

 	
  

 	
  

 
	
  

 	
 8.2.1

 	
 Meter Reading and Confirmation

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The meter-reading time shall be zero hour
 of 28th each month. The electric quantity at all metering points set out in
 Clause 6.1 shall be recorded when the meter-reading is conducted. Electric
 quantity shall be determined by the figures shown in the meter. If the remote
 reading through the tariff calculation system can satisfy the requirement of
 tariff settlement, such reading can be used for tariff settlement, provided
 that on-site meter reading shall be conducted every three months for the
 purpose of checking. If the remote reading through the tariff calculation
 system is different from figures shown in the kilowatt-hour meter, the latter
 shall prevail. The above figures shall be subject to the signing confirmation
 and archival filing of the Seller and the electric power industry bureau to
 which the Buyer belongs.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 After meter reading, the Seller shall fill
 in the Pre-settlement List of Electric Quantity and Fees and fax it to the
 Buyer with its official seal affixed in the next day of the meter reading.
 The Buyer shall confirm the on-grid electric quantity with the Seller prior
 to the 5th of the following month.

 
	
  

 	
  

 	
  

 
	
  

 	
 8.2.2

 	
 Calculation, Checking, Adjustment and
 Confirmation of Electricity Fees

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 After the confirmation of the on-grid
 electric quantity, the Seller and the Buyer shall calculate, check, adjust
 and confirm the on-grid electricity fees. The Buyer shall complete the work
 in relation to the calculation, checking, adjustment and confirmation of the
 on-grid electricity fees with the Seller within 5 Business Days from the date
 on which the purchased electric quantity is confirmed.

 
	
  

 	
  

 	
  

 
	
  

 	
 8.2.3

 	
 Payment of Electricity Fees

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Given the relevant taxation regulations and
 requirements regarding financial cost, after the meter reading on 28th of
 every month, the Seller shall issue a VAT invoice (issue date shall be in the
 month in which the meter reading is conducted) according to the
 Pre-settlement List of Electric Quantity and Fees filled in by it, and send
 such invoice to the Buyer prior to 5th of next month. The Buyer, after receiving
 the original copy of the VAT invoice, shall pay 50% of the on-grid
 electricity fees within 5 Business Days of the on-grid electricity fees
 confirmation date, and pay off the on-grid electricity fees of the period
 within 15 Business Days of the on-grid electricity fees confirmation date. If
 there is any difference between the electricity fees indicated on the VAT
 invoice issued by the Seller for that month and the electricity fees
 confirmed by the Buyer for that month, both the Buyer and the Seller shall
 settle any difference during the electricity fees settlement next month. The
 Seller and the Buyer shall complete the annual electricity fees settlement
 work prior to February 10 of the following year.

 
	
  

 	
  

 	
  

 
	
 8.3

 	
 Form of Payment

 
	
  

 	
  

 	
  

 
	
  

 	
 The Buyer may elect any of the following
 methods to pay the electricity fees:

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 By cheque and remittance settlement method.
 The Buyer shall directly remit the fees to the bank account indicated on the
 Seller’s VAT invoice. In case of any change of the Seller’s account number,
 the Seller shall promptly notify the Buyer in writing, otherwise the losses
 caused therefrom shall be borne by the Seller;

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 By commercial bill (bank acceptance bill
 and commercial acceptance bill). In case of such payment form, the issue date
 of the commercial acceptance bill shall meet the requirements related to the
 payment time as agreed in the contract. Any interests or 

 

9

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 service fees arising therefrom shall be
 borne by the Buyer (which means the Buyer shall pay the interests). The Buyer
 shall designate a discount bank (a closed-end discount).

 
	
  

 	
  

 	
  

 
	
 8.4

 	
 Settlement and Annual Clearance of
 Liquidated Damages

 
	
  

 	
  

 	
  

 
	
  

 	
 8.4.1

 	
 In respect to any outstanding amount due
 and payable from one Party to the other Party under this Contract, the
 liquidated damages for each delayed day shall be paid to such other Party at
 the rate of 0.02% of the outstanding amount.

 
	
  

 	
  

 	
  

 
	
  

 	
 8.4.2

 	
 Work related to the examined electric
 quantity as set out in the Grid Connection and Dispatching Agreement and work
 for the settlement and annual clearance of liquidated damages shall be
 conducted according to the provisions in the Agreement and relevant
 regulations of competent governmental authorities.

 
	
  

 	
  

 	
  

 
	
 8.5

 	
 Payment of the Fees for Grid Supply
 Electric Quantity

 
	
  

 	
  

 	
  

 
	
  

 	
 The Seller shall sign a power supply and
 use agreement with Ningde Electric Power Industry Bureau to which the Buyer
 belongs, and pay the fees according to the grid supply electric quantity and
 the regulated tariff on monthly basis.

 
	
  

 	
  

 
	
 8.6

 	
 Data and Record

 
	
  

 	
  

 
	
  

 	
 The Seller and the Buyer agree to
 respectively keep the original data and records for checking the accuracy of
 the statements, recorded examinations or calculations to a reasonable extent
 according to this Contract.

 
	
  

 	
  

 
	
 9

 	
 Force Majeure

 
	
  

 	
  

 
	
 9.1

 	
 If the occurrence of the Event of Force Majeure totally or partially
 prevents a Party performing any of its obligations under this Contract, such
 Party may suspend performing its obligations, provided that:

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 the extent to and time period for the
 obligation suspension shall not exceed the extent and time period as
 reasonably required for eliminating the impact caused by the Event of Force
 Majeure;

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 the Party which is affected by the Event of
 Force Majeure shall continue its other obligations under this Contract which
 are not affected by the Event of Force Majeure;

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 once the Event of Force Majeure ends, such
 Party shall resume the performance of this Contract as soon as possible.

 
	
  

 	
  

 	
  

 
	
 9.2

 	
 If any Party is prevented from performing this Contract due to any
 Event of Force Majeure, such Party shall notify the other Party in writing as
 soon as possible, indicating the occurrence date of the Event of Force
 Majeure, the time period during which the Event of Force Majeure is estimated
 to last, the nature of the event, the impact on the performance of such Party
 of this Contract, and any measures that have been taken by such Party to
 reduce the impact of such Event of Force Majeure.

 
	
  

 	
  

 	
  

 
	
  

 	
 The Party which is affected by any Event of Force Majeure shall
 provide the other Party with an evidential document in relation to the
 occurrence of the Event of Force Majeure within 30 days from the date on
 which such event occurs (in case of interruption of communication, from the
 date on which the communication resumes).

 
	
  

 	
  

 
	
 9.3

 	
 Both Parties affected by the Event of Force Majeure shall take
 reasonable steps to reduce the losses suffered by one or both of the Parties.
 Both Parties shall negotiate and implement remedial plans and reasonable
 alternative measures in a timely manner in order to reduce or eliminate the
 impact of the Event of Force Majeure.

 

10

	
  

 	
  

 	
  

 
	
  

 	
 If the Party which is affected by the Event of Force Majeure fails to
 make its best efforts to take reasonable measures to mitigate the influence
 of the Event of Force Majeure, such Party shall bear any additional losses
 caused by such act.

 
	
  

 	
  

 	
  

 
	
 9.4

 	
 If the Event of Force Majeure prevents a Party from performing its
 obligations for more than 60 days, the Parties shall negotiate the conditions
 to continue this Contract or terminate this Contract. If both Parties fail to
 reach an agreement on the conditions to continue this Contract or on the
 termination of this Contract within 1 year from the occurrence of the Event
 of Force Majeure, any Party has the right to notify the other Party to
 terminate this Contract, unless otherwise provided in this Contract.

 
	
  

 	
  

 	
  

 
	
 10

 	
 Non-plan Shutdown

 
	
  

 	
  

 	
  

 
	
  

 	
 The Buyer and the Seller agree that the confirmation and examination
 of non-plan shutdown shall be conducted according to the Grid Connection and
 Dispatching Agreement entered into by both Parties and relevant regulations
 of competent governmental authorities.

 
	
  

 	
  

 	
  

 
	
 11

 	
 Default Liability

 
	
  

 	
  

 	
  

 
	
 11.1

 	
 Any Party’s failure to perform its obligations under this Contract or
 perform its obligations according to this Contract shall be deemed as a
 breach of contract. The defaulting Party shall be liable to continue to
 perform or take any remedial steps or compensate any loss for the
 non-defaulting Party.

 
	
  

 	
  

 	
  

 
	
 11.2

 	
 Where a Party breaches the Contract, the other Party shall take any
 proper measure to prevent losses from aggravating. If such Party fails to
 take proper measures, resulting in the aggravation of losses, it shall not
 claim any compensation against the defaulting Party in respect of such
 aggravated losses.

 
	
  

 	
  

 	
  

 
	
 11.3

 	
 If the Seller fails to provide settlement invoice and other
 settlement materials accurately and timely according to Clause 8, the Buyer
 may extend the electricity fees payment date accordingly.

 
	
  

 	
  

 	
  

 
	
 11.4

 	
 If any Party breaches the confidentiality obligations as agreed in
 Clause 16 of this Contract, resulting in any losses to the other Party, it
 shall compensate the other Party for such losses.

 
	
  

 	
  

 	
  

 
	
 11.5

 	
 The Buyer has the right to suspend or terminate this Power Purchase
 and Sale Contract and will not bear any default liability in the event that:

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 there is any defect in the administrative approval procedures in
 respect of the power plant of the Seller;

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 the Seller fails to perform any legal obligation, as a result of
 which the government requires the Buyer to cease the electricity purchase;

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 the Buyer implements detailed administrative acts of the government.

 
	
  

 	
  

 	
  

 
	
 12

 	
 Effectiveness and
 Term of the Contract

 
	
  

 	
  

 	
  

 
	
 12.1

 	
 This Contract shall come into force upon
 the execution by the legal representatives or authorized representatives of
 both Parties and affixture of seals by both Parties and effectiveness of the
 Grid Connection and Dispatching Agreement.

 
	
  

 	
  

 	
  

 
	
 12.2

 	
 The term of this Contract shall be from the
 effective date to 31 March 2011.

 
	
  

 	
  

 	
  

 
	
 12.3

 	
 Both Parties shall negotiate issues in
 respect of the renewal of this Contract 3 months prior to the expiry of this
 Contract. If no negotiation for renewal has been conducted by both Parties
 upon the expiry of this Contract and neither Party expresses any disagreement
 in writing in respect of the Contract (i.e. request for renewal), the
 Contract shall extend three year 

 

11

	
  

 	
  

 	
  

 
	
  

 	
 automatically. During the extended period,
 if a Party gives the other Party any disagreement (i.e. request for renewal),
 this Contract shall be automatically terminated from the date on which the
 written disagreement (i.e. request for renewal) is served to the other Party
 and the Parties shall execute a separate contract.

 
	
  

 	
  

 	
  

 
	
 13

 	
 Applicable Law

 
	
  

 	
  

 	
  

 
	
 13.1

 	
 The execution, effectiveness, construction,
 performance and dispute settlement in respect of this Contract shall be
 governed by PRC law.

 
	
  

 	
  

 	
  

 
	
 14

 	
 Alteration, Transfer and Termination of the Contract

 
	
  

 	
  

 	
  

 
	
 14.1

 	
 Any alteration, revision and supplementary
 to this Contract shall be in writing and the conditions for effectiveness
 shall the same as Clause 12.1.

 
	
  

 	
  

 	
  

 
	
 14.2

 	
 The Seller and the Buyer expressly agree
 that neither of them has the right to transfer all or part of its rights and
 obligations under this Contract to a third party without prior written
 consent of the other Party.

 
	
  

 	
  

 	
  

 
	
 14.3

 	
 During the term of this Contract, both
 Parties agree to make adjustments to relevant clauses of this Contract in the
 event of: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 any change of relevant state laws, regulations, rules and policies;

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 any promulgation of rules, measures or regulations related to the
 electricity market by the State Electricity Regulatory Commission.

 
	
  

 	
  

 	
  

 
	
 14.4

 	
 Termination of Contract

 
	
  

 	
  

 	
  

 
	
  

 	
 In case of occurrence of any of following
 events, the other Party has the right to terminate this Contract within 10
 days after sending a termination notice:

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 a Party becomes bankrupt or is the subject of proceedings for
 liquidation or its business license is revoked;

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 a Party is merged with another entity or transfers all or most of its
 assets to another entity and the existing entity is unable to reasonably bear
 all of its obligations under this Contract;

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 the Grid Connection and Dispatching Agreement entered into by both
 Parties is terminated;

 
	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
 the Seller is unable to transmit electricity safely for a successive
 60 days according to this Contract, or the Buyer is unable to accept
 electricity for a successive 60 days according to this Contract (unless it is
 caused by Force Majeure).

 
	
  

 	
  

 	
  

 
	
 15

 	
 Dispute Settlement

 
	
  

 	
  

 	
  

 
	
 15.1

 	
 Any dispute arising out of or in relation
 to the performance of this Contract shall be first settled by both Parties
 through negotiation. It may be submitted to
 electricity regulatory authority or relevant Fujian authority for mediation. If no agreement can be reached
 within 60 days through mediation, the Parties agree to submit such dispute to
 Fuzhou Arbitration Commission for arbitration. The arbitral award shall be
 final and binding on the Parties.

 
	
  

 	
  

 	
  

 
	
 15.2

 	
 During the arbitration, except the dispute in question, the Parties
 shall continue to perform other parts of this Contract.

 

12

	
  

 	
  

 
	
 16

 	
 Miscellaneous

 
	
  

 	
  

 
	
 16.1

 	
 Both Parties shall treat as confidential any materials and documents
 which are acquired from the other Party and could not be obtained from public
 domain. Without the consent of such other Party which provides such materials
 and documents, the Party shall not divulge any or all of such materials and
 documents to any third party, unless as otherwise required by the state.

 
	
  

 	
  

 
	
 16.2

 	
 Schedules of Contract

 
	
  

 	
  

 
	
  

 	
 Schedule 1: Power Station Metering Point Diagram

 
	
  

 	
  

 
	
  

 	
 Schedule 2: Main Technical Parameters of the Power Station

 
	
  

 	
  

 
	
  

 	
 Schedule 3: Agreement

 
	
  

 	
  

 
	
  

 	
 Schedule4: Problems with Electric Quantity Measuring Device at
 Gateways and Improvement Requirements

 
	
  

 	
  

 
	
  

 	
 The Schedules to this Contract constitute integral parts of this
 Contract, and have the equal legal effect with this Contract.

 
	
  

 	
  

 
	
 16.3

 	
 Entire Agreement

 
	
  

 	
  

 
	
  

 	
 This Contract and its schedules constitute the entire agreement
 between the Parties in respect of the subject of this Contract, and shall
 supersede any prior discussions, negotiations, agreements and contracts
 between the Parties concerning this Contract.

 
	
  

 	
  

 
	
 16.4

 	
 Notice and Delivery

 
	
  

 	
  

 
	
  

 	
 Any notice, document and standard bill in connection with this
 Contract shall be in writing. They shall be deemed as received when the
 receiver signs for confirmation if they are sent by registered email, express
 mail or personal delivery. They shall be deemed as received when they are
 sent and received by fax. All notices, documents and standard bills shall
 come into force when they have been delivered or received. All notices,
 bills, materials or documents shall be sent to the addresses provided below
 in this Contract, or to the revised address where one Party notify the other
 Party of any change of its address.

 
	
  

 	
  

 
	
 16.5

 	
 Counterparts

 
	
  

 	
  

 
	
  

 	
 This Contract shall be executed in 12 original copies. The Buyer will
 hold 6 copies and the Seller will hold 4 copies. The remaining 2 copies shall
 be submitted to the competent electric regulatory authority for record.

 

	
  

 	
  

 	
  

 
	
  

 	
 Buyer: Fujian
 Province Electric Power Co., Ltd. 

 	
 Seller: Pingnan
 County Wangkeng Hydroelectric Co., Ltd.

 
	
  

 	
  

 	
  

 
	
  

 	
 (seal affixed)

 	
 (seal affixed)

 
	
  

 	
  

 	
  

 
	
  

 	
 Legal
 Representative: Cai Jingdong

 	
 Legal
 Representative:

 
	
  

 	
  

 	
  

 
	
  

 	
 (seal affixed)

 	
 (seal affixed)

 

13

	
  

 	
  

 	
  

 
	
  

 	
 Authorized
 Representative:

 	
 Authorized
 Representative: Sun Rongshi

 
	
  

 	
  

 	
  

 
	
  

 	
 Date and Place of
 Execution of the Contract: 28 June 2010, in Fuzhou City

 

14

Schedule 1
Power Station Metering Point Diagram

 

15

Schedule 2 Main
Technical Parameters of the Power Station

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Project

 	
  

 	
  

 	
  

 	
 No. of Generator
 Unit

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 No. 1 and No. 2
 Generator Units

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Design water level
 of the reservoir

 	
  

 	
 752.5m

 
	
  

 	
  

 	
  

 
	
 Dead water level
 of the reservoir

 	
  

 	
 723m

 
	
  

 	
  

 	
  

 
	
 Design average utilization
 hours for years

 	
  

 	
 3720h

 
	
  

 	
  

 	
  

 
	
 Adjustment
 parameter of the reservoir capacity of the power station at the this level

 	
  

 	
 93%

 
	
  

 	
  

 	
  

 
	
 Adjustment
 capability of the reservoir

 	
  

 	
 Incomplete
 adjustment for the whole year

 
	
  

 	
  

 	
  

 
	
 Hydraulic turbine
 equipments

 	
  

 	
 Type

 	
  

 	
 HL(L185674)-LJ-145

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Manufacturer

 	
  

 	
 GE Hydro Asia Co.,
 Ltd. (former Hangzhou Kvaerner)

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Rated head (m)

 	
  

 	
 179.1m

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Maximum head (m)

 	
  

 	
 198.1m

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Minimum head (m)

 	
  

 	
 159.3m

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Name-plate rating

 	
  

 	
 20.625MW

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Power generator equipments

 	
  

 	
 Type

 	
  

 	
 SF4-J20-10/3000

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Manufacturer

 	
  

 	
 GE Hydro Asia Co.,
 Ltd. (former Hangzhou Kvaerner)

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Name-plate rating

 	
  

 	
 20MW

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Nominal rating

 	
  

 	
 20MW

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Rated voltage

 	
  

 	
 10.5kv

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Rated power factor

 	
  

 	
 0.9 (lags behind)

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Rated revolving
 speed

 	
  

 	
 600r/min

 

16

Schedule 3
Agreement

Agreement

	
  

 	
  

 	
  

 	
  

 
	
 Party A: Fujian Province Electric Power Co., Ltd., Ningde Electric
 Power Industry Bureau

 
	
  

 	
  

 	
  

 	
  

 
	
 Party B: Pingnan County Wangkeng Hydroelectric Co., Ltd.

 
	
  

 	
  

 	
  

 	
  

 
	
 Party C: Fujian Tongda Hydroelectric Co., Ltd.

 
	
  

 	
  

 	
  

 	
  

 
	
 On 11 March 2010, Party A, Party B and Party C discussed the issues
 related to settlement of on-grid metering points and calculation of electric
 quantity of Wangkeng and Daixi stations after the operation of
 Wangkeng-Jiayang line (hereinafter referred to as “Wangjia line”) through
 carefully and friendly negotiations. It is hereby agreed as follows:

 
	
  

 	
  

 	
  

 	
  

 
	
 1

 	
 According to relevant regulations, after Wangjia line has been put
 into operation, the metering points at gateways for on-grid and off-grid
 electric quantity shall be set up at the property demarcation points, i.e.
 switch 108 of Wangdai line and switch 112 of Wangjia line. The electric
 energy loss at the metering points of the gateways on the side of the power
 station shall be borne by the power station. However, since there is circling
 electric quantity in loop network operation, the calculation of the actual
 electric quantity is complex and the accuracy cannot be secured. At the
 request of the owners of Wangkeng and Daixi stations, after Wangjia line has
 been put into operation, the metering points at gateways for on-grid and
 off-grid electric quantity will be moved to the switch (11A) on the side of
 the main transformer of Wangkeng Station and the switch (14A) on the side of
 the main transformer of Daixi Station. The metering points at switch 113 and
 switch 141 on Wangdai line and the metering point at switch 142 on Daigan
 line shall be reference metering points.

 
	
  

 	
  

 	
  

 	
  

 
	
 2

 	
 It is agreed that the rate of on-grid loss of Wangkeng and Daixi
 stations shall be 2.2%.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 The calculation of the original on-grid and off-grid electric
 quantity shall be amended as follows:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 On-grid electric quantity:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
 On-grid electric quantity at Daixi Station = 14A - 14A*2.2%

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
 On-grid electric quantity at Wangkeng Station = 11A - 11A*2.2%

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Off-grid electric quantity:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
 Off-grid electric quantity at Daixi Station = 14A

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
 Off-grid electric quantity at Wangkeng Station = 11A

 
	
  

 	
  

 	
  

 	
  

 
	
 3

 	
 This Agreement will serve as a supplementary agreement to the Power
 Purchase Contracts of Wangkeng and Daixi stations, and will come into force
 from the date on which Wangjia line is put into operation. It will remain
 effective for one year. Both Parties shall negotiate issues in respect of the
 renewal of this Agreement 3 months prior to the expiry of this Agreement. If
 no negotiation for renewal has been conducted by both Parties upon the expiry
 of this Agreement and neither Party expresses any disagreement in writing in
 respect of this Agreement (i.e. request for renewal), this Agreement shall
 extend three year automatically. During the extended period, if a Party gives
 the other Party any disagreement (i.e. request for renewal), the Parties
 shall negotiate relevant renewal issues.

 
	
  

 	
  

 	
  

 	
  

 
	
 4

 	
 This Agreement

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 This Agreement shall be executed in 8 original copies. Each of Party
 A, B and C will hold 2 copies respectively. Two copies shall be submitted to
 Fujian Province Electric Power Co., Ltd. as the schedules to the Power
 Purchase Contracts of Wangkeng and Daixi stations. This 

 

17

	
  

 	
  

 
	
  

 	
 Agreement has the same legal effect as the Power Purchase Contracts
 of Wangkeng and Daixi stations. If there is any discrepancy between the Power
 Purchase Contracts and this Agreement, this Agreement shall prevail.

 

18

	
  

 	
  

 
	
 There is no
 content on this page.

 
	
  

 	
  

 
	
 Party A:

 	
 Fujian Province Electric Power Co., Ltd., Ningde Electric Power
 Industry Bureau 

 
	
  

 	
  

 
	
  

 	
 Legal Representative (Authorized Representative): Ding Zhihua 

 
	
  

 	
  

 
	
 Party B:

 	
 Pingnan County Wangkeng Hydroelectric Co., Ltd. 

 
	
  

 	
  

 
	
  

 	
 Legal Representative (Authorized Representative): Sun Rongshi

 
	
  

 	
  

 
	
 Party C:

 	
 Fujian Tongda Hydroelectric Co., Ltd. 

 
	
  

 	
  

 
	
  

 	
 Legal Representative (Authorized Representative): Wang Guodong 

 

Date and Place of Execution of the Contract:
30 March 2010, in Ningde City

19

Schedule 4

Problems with
Electric Quantity Measuring Device at Gateways and Improvement
Requirements

	
  

 	
  

 	
  

 
	
 1

 	
 Installation and Removal of Kilowatt-hour
 Meters

 
	
  

 	
  

 	
  

 
	
  

 	
 No kilowatt-hour meters have been installed
 at the metering points 61A and 64A. According to the requirements set out in
 the Electric Quantity Measuring Device Technical Management Regulations
 (DL/T448—2000), multi-functional kilowatt-hour meters with the accuracy
 degree of 0.5S or above shall be installed at the metering points 61A and
 64A. In order to ensure the special use of the 14A metering return circuit,
 the kilowatt-hour meter with the accuracy degree of 0.5 for checking purpose
 which is at the 14A return circuit and parallel-connected to the power
 station shall be removed.

 
	
  

 	
  

 	
  

 
	
 2

 	
 Installation and Removal of Mutual Inductor

 
	
  

 	
  

 	
  

 
	
  

 	
 The current mutual inductors at the
 metering points at 11A and 61A have degrees of 0.2 and 10P respectively,
 which are not in compliance with the requirements set out in the Electric
 Quantity Measuring Device Technical Management Regulations (DL/T448—2000).
 They shall be changed to current mutual inductors with a degree of 0.2S.

 
	
  

 	
  

 	
  

 
	
  

 	
 No current mutual inductors have been installed
 at metering point 64A at present and a set of current mutual inductor with
 the degree of 0.2S shall be installed.

 
	
  

 	
  

 	
  

 
	
  

 	
 The voltage mutual inductors at the
 metering points at 61A and 64A have a degree of 0.5, which are not in
 compliance with the requirements set out in the Electric Quantity Measuring
 Device Technical Management Regulations (DL/T448—2000). They shall be
 changed to voltage mutual inductors with a degree of 0.2.

 
	
  

 	
  

 	
  

 
	
 3

 	
 Installation of Loss-of-voltage Timers

 
	
  

 	
  

 	
  

 
	
  

 	
 No loss-of-voltage timers have been
 installed at the metering points at 11A, 61A and 64A. Loss-of-voltage timers
 shall be installed at the screen of the kilowatt-hour meters.

 
	
  

 	
  

 	
  

 
	
 4

 	
 Installation of Second Return Circuit

 
	
  

 	
  

 	
  

 
	
  

 	
 In respect of the voltage and current
 return circuits at the metering points 11A and 14A, standard wires are not
 adopted. At the metering point 14A, three-phase four-wire system measurement
 is adopted, and the second return circuit between the current mutual inductor
 and the kilowatt-hour meter are connected by four-wire system, which is not
 in compliance with the requirements set out in the Electric Quantity
 Measuring Device Technical Management Regulations (DL/T448—2000). The second return
 circuit between the current mutual inductor and the kilowatt-hour meter at
 the metering point 14A shall be connected by six-wire system. Meanwhile,
 standard wires shall be adopted for the voltage and current return circuits
 at the metering points 11A and 14A.

 
	
  

 	
  

 	
  

 
	
  

 	
 At the metering points 61A and 64A, the
 second return circuits between mutual inductor and kilowatt-hour meter shall
 be added.

 
	
  

 	
  

 	
  

 
	
 5

 	
 Sealed-off of the Second Return Circuit

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 The cap panel and side panels of the screen
 in which the kilowatt-hour meter is installed at the metering point 11A shall
 be removed from outside; the side panels of the screen in which the
 kilowatt-hour meter is installed at the metering point 14A shall be removed
 from outside and fastened by nuts inside.

 

20

	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 The voltage and current connection
 terminals in the mutual inductor’s on-site terminal box at the metering
 points 11A and 14A cannot be sealed off at present and they shall be altered
 to second return circuit which can be sealed off.

 

21Fixed Assets Loan Contract

Exhibit 4.109

Fixed Assets Loan Contract

No.: FJ001622010256

Borrower: Fugong Xineng Power Development
Co., Ltd.

Business license No.: 530000400004919

Legal representative/ person in charge: JOHN
DOUGLAS KUHNS

Domicile: Latudi Village Shangpa Town
Fugong County Nujiang Prefecture Post Code: 673400

Account bank and account No.: Bank of
China Limited Fujian Branch 800112475808093001

	
  

 	
  

 
	
 Tel: 0886-3412280

 	
 Fax: 0886-3412280

 

Lender: Bank of China Limited Fujian
Branch

Legal representative/ person in charge: Tao
Yiping

	
  

 	
  

 
	
 Domicile: Bank of China Mansion, No.136 Wusi Road, Fuzhou City

 	
 Post Code: 350003

 

	
  

 	
  

 
	
 Tel: 0591-87090999

 	
 Fax: 0591-87848584

 

Through consultations on an equal basis, the
Borrower and the Lender agree on the provision of fixed assets loan by the
Lender to the Borrower, and hereby enter into this Contract. 

	
  

 	
  

 	
  

 
	
 1

 	
 Amount 

 
	
  

 	
  

 
	
  

 	
 Currency of the loan: RMB.

 
	
  

 	
  

 
	
  

 	
 Amount of the loan: (in words) Ninety million;

 
	
  

 	
  

 
	
  

 	
  

 	
 (in numbers) 90,000,000.00

 
	
  

 	
  

 
	
 2

 	
 Term 

 
	
  

 	
  

 
	
  

 	
 Term of the loan: 216 months, from the date of actual
 utilization; or in case of installments, from the date of the first actual
 utilization.

 
	
  

 	
  

 
	
  

 	
 The Borrower shall draw the facility strictly in accordance with the
 agreed schedule of utilization. Where the date of actual utilization is later
 than the agreed date of utilization, the Borrower shall still repay in
 accordance with the schedule of repayment agreed in this Contract.

 
	
  

 	
  

 
	
 3

 	
 Purpose 

 
	
  

 	
  

 
	
  

 	
 Purpose: to finance the construction of Latudi River Hydroelectric
 Power Station (including replacement of the existing loan and external
 borrowing in Agricultural Bank of China).

 
	
  

 	
  

 
	
  

 	
 The Borrower shall not change the purpose without the written consent
 of the Lender, including but not limited to that the Borrower shall not use
 the loan to invest in the stocks and other securities, and to finance the
 projects of which the entry is forbidden by the laws, regulations,

 

1

Fixed Assets Loan Contract

	
  

 	
  

 	
  

 
	
  

 	
 regulatory rules and national policies or the projects without due permission
 and the projects and purposes which cannot be financed by the facility from a
 bank. 

 
	
  

 	
  

 	
  

 
	
 4

 	
 Interest rate and calculation of the interest 

 
	
  

 	
  

 	
  

 
	
 4.1

 	
 Interest rate 

 
	
  

 	
  

 	
  

 
	
  

 	
 Interest rate on the RMB borrowings 

 
	
  

 	
  

 	
  

 
	
  

 	
 The interest rate shall be (2) of the following: 

 
	
  

 	
  

 
	
  

 	
 (1)

 	
 Fixed interest rate, /‰ The interest rate will not change in the term of
 the loan. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 Floating interest rate, with the floating period of 12 months:
 

 
	
  

 	
  

 	
  

 
	
  

 	
 The interest rate shall be readjusted for every 12 months from
 the date of actual utilization (in case of installments, from the date of the
 first actual utilization). The readjustment date shall be the date in the
 readjustment month corresponding to the date of actual utilization. If there
 is no date in the readjustment month corresponding to the date of actual utilization,
 the readjustment date shall be the last day in the readjustment month. 

 
	
  

 	
  

 
	
  

 	
 A.

 	
 The interest rate on the borrowings in the first floating period
 shall be the more than five-year benchmark interest rate of loan
 issued by the People’s Bank of China on the date of actual utilization less
 5%. 

 
	
  

 	
  

 	
  

 
	
  

 	
 B.

 	
 Upon expiration of each floating period, the benchmark interest rate
 of the loan with the same term issued by the People’s Bank of China on the
 readjustment date less 5% shall be the interest rate applicable to the
 next floating period. 

 
	
  

 	
  

 	
  

 
	
 4.2

 	
 Calculation of the interest 

 
	
  

 	
  

 	
  

 
	
  

 	
 The interests shall be calculated from the date of actual utilization
 by the Borrower and based on the actually drawn amount and the days of using
 such amount. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Interest calculating formula: Interests = Principal × Days of actual
 using × Daily interest rate. 

 
	
  

 	
  

 	
  

 
	
  

 	
 The daily interest rate shall be calculated on 360 days each year.
 The calculating formula: Daily interest rate = Annual interest rate/360. 

 
	
  

 	
  

 	
  

 
	
 4.3

 	
 Interest settlement method 

 
	
  

 	
  

 	
  

 
	
  

 	
 The Borrower shall settle the interest according to (1) of the
 following: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 The interests shall be settled on a quarterly basis. The 20th day of
 the last month in each quarter shall be the date of interest settlement, and
 the 21st thereof shall be the date of interest payment. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 The interests shall be settled on a monthly basis. The 20th day of
 each month shall be the date of interest settlement, and the 21st thereof
 shall be the date of interest payment. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If the repayment date of the last installment of the loan principal
 is not a date of interest payment, then such repayment date shall be deemed
 as the date of interest payment, and the Borrower shall pay off all interests
 accrued as of such date.

 
	
  

 	
  

 	
  

 
	
 4.4

 	
 Penalty interest 

 

2

Fixed Assets Loan Contract

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 If the Borrower fails to repay within the agreed term, the part which
 is overdue shall be charged interests at the penalty interest rate of the
 overdue repayment, from the overdue date until the principal and interests
 thereon are paid off. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 If the Borrower fails to use the loan for the agreed purpose, the
 part which is misappropriated shall be charged interests at the penalty
 interest rate of the misappropriation, from the date of misappropriation
 until the principal and interests thereon are paid off. 

 
	
  

 	
  

 	 	
  

 
	
  

 	
 (3)

 	
 The loan which is both overdue and misappropriated shall be charged
 interests at the penalty interest rate of the misappropriation. 

 
	
  

 	
  

 	 	
  

 
	
  

 	
 (4)

 	
 If the Borrower fails to pay duly any interests and the penalty
 interests, the compound interests thereon shall, pursuant to the method of
 interest settlement set out in Clause 4.3 hereof, be charged at the penalty
 interest rate agreed in Clause 4.3 hereof on such interests and penalty interests.
 

 
	
  

 	
  

 	 	
  

 
	
  

 	
 (5)

 	
 In respect of the calculation of the penalty interests and the
 compound interests, where the interest rate of the loan agreed in this
 Contract is adjusted, the penalty interests and the compound interests shall
 be calculated on a basis of different periods since the date of adjustment. 

 
	
  

 	
  

 	 	
  

 
	
  

 	
 (6)

 	
 Penalty interest rate 

 
	
  

 	
  

 	 	
  

 
	
  

 	
 A.

 	
 Within the term of the loan, the penalty interest rate of the overdue
 repayment shall be the rate agreed in Clause 4.1 plus 30%; and the
 penalty interest rate of the misappropriation shall be the rate agreed in
 Clause 4.1 plus 50%.

 
	
  

 	
  

 	 	
  

 
	
  

 	
 B.

 	
 Upon the end of the term of the loan, the penalty interest rate of
the loan with the fixed interest rate shall be changed into the floating
interest rate, with the floating cycle of / months. The date of re-pricing
shall be the corresponding date of the expiring date of the term of the loan
in the month which the date of re-pricing is in. Where there is not a
corresponding date in such month, the last day in such month shall be the
date of re-pricing. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Within the first floating cycle, the penalty interest rate of the
 overdue repayment shall be the rate agreed in Clause 4.1 plus /%; and
 the penalty interest rate of the misappropriation shall be the rate agreed in
 Clause 4.1 plus /%.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Following the end of each floating cycle, the basic interest rate of
 the same level issued by the People’s Bank of China on the date of re-pricing
 shall be the basic interest rate of the next floating cycle. The penalty
 interest rate of the overdue repayment shall be such interest rate plus /%;
 and the penalty interest rate of the misappropriation shall be such interest
 rate plus /%.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Upon the expiry of the term, the interest rate of the loan with the
 floating interest rate shall still be floating pursuant to the floating
 period and method agreed in Clause 4.1 hereof. The penalty interest rate of
 the overdue loan shall be such floating interest rate plus 30%, and
 penalty interest rate of the misappropriated loan shall be such floating interest
 rate plus 50%.

 
	
  

 	
  

 	
  

 	
  

 
	
 5

 	
 Conditions for Utilization 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 The Borrower can only utilize upon satisfaction of the following
 conditions: 

 
	
  

 	
  

 	
  

 	
  

 
	
 5.1

 	
 This Contract and its Appendixes have become effective; 

 

3

Fixed Assets Loan Contract

	
  

 	
  

 	
  

 
	
 5.2

 	
 The Borrower has retained with the Lender the Borrower’s documents,
 bills, specimen signatures, list of personnel and signature sample relating
 to execution and performance of this Contract and properly filled in the
 relevant certificates; 

 
	
  

 	
  

 
	
 5.3

 	
 The Borrower has opened the account necessary for performance of this
 Contract as required by the Lender; 

 
	
  

 	
  

 	
  

 
	
 5.4

 	
 The Borrower shall, 1 banking day prior to utilization, submit
 to the Lender a written application for utilization and the evidential
 documents for the purpose, and handle the relevant procedures for
 utilization; 

 
	
  

 	
  

 	
  

 
	
 5.5

 	
 The Borrower has provided to the Lender the resolution and
 authorization approving execution and performance of this Contract issued by
 the board of directors or other authorities of the Borrower; 

 
	
  

 	
  

 	
  

 
	
 5.6

 	
 The capital fund of the same proportion as the proposed facility has
 been made in full, and the actual progress of the project matches with the
 amount which has been invested; 

 
	
  

 	
  

 	
  

 
	
 5.7

 	
 The Borrower has provided the security as required by the Lender, and
 the security contract has come into effect and the legal procedures of
 examination and approval, registration or filling have been completed; and 

 
	
  

 	
  

 	
  

 
	
 5.8

 	
 Other conditions for utilization as stipulated by law or agreed by
 both Parties: /. 

 
	
  

 	
  

 	
  

 
	
  

 	
 The Lender may refuse the Borrower’s application for utilization if
 the above conditions for utilization are not satisfied, except the Lender
 agrees to extend the loan.

 
	
  

 	
  

 	
  

 
	
 6

 	
 Date and method for utilization 

 
	
  

 	
  

 	
  

 
	
 6.1

 	
 The Borrower shall draw the loan pursuant to the date and method of (2)
 as follows:

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 Draw the loan in a lump sum on         /        .

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 Draw the loan in full within the period of 90 days since 15
 July 2010.

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 Draw the loan by installments pursuant to the schedule as follows: 

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Date of Utilization

 	
  

 	
 Amount of Utilization

 
	
  

 	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
    /   

 	
  

 	
    /   

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
    /   

 	
  

 	
    /   

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
    /   

 	
  

 	
    /   

 

	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
 The Borrower shall file separate application in accordance with the
 progress of the project and draw with the consent of the Lender. In any event
 the Borrower shall draw the loan in full no later than             /            .
 

 
	
  

 	
  

 	
  

 
	
 6.2

 	
 The Lender shall be entitled to refuse the Borrower’s application for
 drawing the part of loan which has not been drawn within the above time limit.
 

 
	
  

 	
  

 	
  

 
	
  

 	
 Where the Lender agrees to extend such delayed amount, it shall be
 entitled to charge the obligation fees at      1%        for the delayed
 drawing amount; and where the Lender refuses to extend part of the loan, the
 Lender shall be entitled to charge the obligation fees at 1% for
 such part.

 

4

Fixed Assets Loan Contract

	
  

 	
  

 	
  

 
	
 7

 	
 Payment of the amount of the loan 

 
	
  

 	
  

 	
  

 
	
 7.1

 	
 Loan account: The Borrower shall open the following account with the
 Lender as the loan account and the granting and payment of the loan shall be
 carried out through such account. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Name of the account: Fugong Xineng Power Development Co., Ltd.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Account No.: 800112475808073001

 
	
  

 	
  

 	
  

 
	
 7.2

 	
 The loan shall be paid in the following method:

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 In accordance with the Interim Measures on Management of the Fixed
 Assets Loans issued by the China Banking Regulatory Commission, the payment
 of an individual amount of the loan of the Borrower under this Contract which
 exceeds 5% of the total investment of the project (i.e. Currency: RMB,
 Amount: RMB 7,058,100, the same below) or RMB 5,000,000 shall be paid in the
 method of entrusted payment by the Lender. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Entrusted payment by the Lender means the Lender shall pay the amount
 of the loan to the counterparty of the Borrower in the transaction which
 conforms to the purpose agreed in this Contract, in accordance with the
 application of utilization and entrustment of payment by the Borrower. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Where the conditions of entrusted payment by the Lender could be
 satisfied, the Borrower shall specify the payment entrustment (including the
 information necessary for the payment such as the name and the account of the
 counterparty as well as the amount of the payment etc.) in the application
 for utilization, and shall provide the Lender with the relevant transaction
 documents such evidential document for purpose of the loan etc. required for
 the submission for examination. The Lender shall, following examination and
 approval, pay the loan to the Borrower’s counterparty in the transaction
 through the Borrower’s account. Where the Lender fails to perform its
 obligation of entrusted payment due to the untruthfulness, incorrectness and
 incompleteness of the relevant transaction materials provided by the
 Borrower, the Lender shall not bear any responsibility and the obligation of
 repayment of the Borrower which has occurred already under this Contract
 shall not be affected. The Lender shall, in accordance with the application
 of utilization, the payment entrustment and the pay order required by the
 Lender, pay the amount to the counterparty’s account. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Where the Lender found, following examination, that the relevant
 transaction materials such as the evidence document of the purpose do not
 conform to this Contract or are otherwise flawed, it shall be entitled to
 request the Borrower to supplement, replace, state or re-provide the relevant
 materials. Prior to the provision of the relevant transaction materials
 satisfactory to the Lender by the Borrower, the Lender shall be entitled to
 refuse to grant and pay the relevant amount. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In case the account bank of the counterparty in the transaction
 refunds and the Lender could not pay duly the loan to its counterparty in
 accordance with the payment entrustment by the Borrower, the Lender shall not
 bear any responsibility, and the obligation of repayment of the Borrower
 which has occurred already under this Contract shall not be affected. The
 Borrower hereby authorizes the Lender to hold the amount refunded by the
 account bank of the counterparty. In such case, the Borrower shall re-provide
 the payment entrustment and relevant transaction materials such as the
 evidential documents of the purpose. The Lender shall, following examination
 and approval, pay the loan to the Borrower’s counterparty in the transaction
 through the Borrower’s account. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not contravene the above agreements and shall not
 avoid the entrusted payment by the Lender by way of breaking up the whole
 amount into small amounts. 

 

5

Fixed Assets Loan Contract

	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 Except the cases
 agreed above which must adopt the entrusted payment by the Lender, unless
 otherwise agreed by both Parties, all the other methods of payment shall be:
 the entrusted payment by the Lender. 

 
	
  

 	
  

 	
  

 
	
 8

 	
 Repayments 

 
	
  

 	
  

 	
  

 
	
 8.1

 	
 Except as
 otherwise agreed by both Parties, the Borrower shall repay the loan hereunder
 pursuant to (2) as follows: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 All the loan
 hereunder shall be repaid on the date of expiration of the term of the loan. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 The loan hereunder
 shall be repaid pursuant to the following repayment schedule: 

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 No.

 	
  

 	
 Date of Repayment

 	
  

 	
 Amount of Repayment

 
	

 

 	
  

 	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 1

 	
  

 	
 30 December 2010

 	
  

 	
     50

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2

 	
  

 	
 30 December 2011

 	
  

 	
   100

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 3

 	
  

 	
 30 December 2012

 	
  

 	
   200

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 4

 	
  

 	
 30 December 2013

 	
  

 	
   300

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 5

 	
  

 	
 30 December 2014

 	
  

 	
   400

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 6

 	
  

 	
 30 December 2015

 	
  

 	
   450

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7

 	
  

 	
 30 December 2016

 	
  

 	
   500

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8

 	
  

 	
 30 December 2017

 	
  

 	
   500

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 9

 	
  

 	
 30 December 2018

 	
  

 	
   550

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 10

 	
  

 	
 30 December 2019

 	
  

 	
   550

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 11

 	
  

 	
 30 December 2020

 	
  

 	
   600

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12

 	
  

 	
 30 December 2021

 	
  

 	
   600

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 13

 	
  

 	
 30 December 2022

 	
  

 	
   650

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 14

 	
  

 	
 30 December 2023

 	
  

 	
   650

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 15

 	
  

 	
 30 December 2024

 	
  

 	
   700

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 16

 	
  

 	
 30 December 2025

 	
  

 	
   700

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 17

 	
  

 	
 30 December 2026

 	
  

 	
   750

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 18

 	
  

 	
 30 December 2027

 	
  

 	
   750

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Total

 	
  

 	
 9,000

 

	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 Other schedule of
 repayment:                     /                    . 

 

6

Fixed Assets Loan Contract

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 To change the above repayment schedule, the Borrower shall, 7 banking
 days prior to expiration of the relevant loan amount, provide the Lender with
 the written application, and change to such repayment schedule shall be
 subject to the written confirmation of both Parties.

 
	
  

 	
  

 	
  

 
	
 8.2

 	
 Except as otherwise agreed by both Parties, on condition that the
 Borrower delays to repay both the principal and interests, the Lender shall
 be entitled to decide the priority of the repayment of the principal or
 interests; if there are several mature loans and overdue loans hereunder in
 case of repayment by installments, the Lender shall be entitled to decide the
 priority of repayment of certain loan by the Borrower; if there are several
 mature loan contracts between both Parties, the Lender shall be entitled to
 decide the priority of performance of each contract by the Borrower. 

 
	
  

 	
  

 
	
 8.3

 	
 Except as otherwise agreed by both Parties, the Borrower may prepay
 the loan, provided that it shall give a prior written notice of 7 banking day to the Lender. The amount prepaid shall be firstly used to repay
 the loan to be mature lastly, i.e. repayment by the reverse sequence. 

 
	
  

 	
  

 
	
  

 	
 The Lender shall be entitled to charge the compensatory fees for the
 loan prepaid at 1%. 

 
	
  

 	
  

 
	
 8.4

 	
 The Borrower shall repay the loan hereunder by the method of (2)
 as follows: 

 
	
  

 	
  

 
	
  

 	
 (1)

 	
 The Borrower shall, no later than     /     banking days prior to
 maturity of each sum of principal and interests, deposit adequate funds into
 the following account for repayment of the loan, and the Lender shall be
 entitled to actively collect the sum from such account on the mature date of
 each sum of principal and interest. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Name of repayment account:              /             .

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Account No.:              /             .

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The ratio of the cash flow of the revenue of the Borrower related
 herewith which can enter into the above repayment account shall be:            /           ;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The average existing amount in the above repayment account shall be:
            /           . 

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 The Borrower shall, no later than 1 banking day prior to
 maturity of each sum of principal and interests, deposit adequate funds into
 the following account for repayment of the loan, and the Lender shall be
 entitled to actively collect the sum from such account on the mature date of
 each sum of principal and interest. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Name of account: Fugong Xineng Power Development Co., Ltd.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Account No.: 800112475808093001.

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 Other repayment method as agreed by both Parties: __________/__________.
 

 
	
  

 	
  

 	
  

 
	
 9

 	
 Security 

 
	
  

 	
  

 
	
 9.1

 	
 The securities for the debt under this Contract are: 

 
	
  

 	
  

 
	
  

 	
 the pledge
 provided by the right to collect
 electricity fees of Fugong Xineng Power Development Co., Ltd.,
 with the execution of the Contract of Pledge with the contract number of No. FJ001622010275, and this Contract
 is the principal contract of such security. 

 
	
  

 	
  

 
	
  

 	
 the mortgage with the whole
 assets of Latudi River Power Station provided by Fugong Xineng Power Development Co., Ltd.,
 with the execution of the Contract of Mortgage with the contract number of No. FJ001622010258. This Contract is
 the principal contract of such security. Within 3 months from the date of the
 first utilization by the Borrower under this Contract, the 

 

7

Fixed Assets Loan Contract

	
  

 	
  

 	
  

 
	
  

 	
 Borrower
 shall complete the mortgage procedures in respect of the whole assets of
 Latudi River Power Station. 

 
	
  

 	
  

 
	
  

 	
 Prior to
the completion of the mortgage procedures in respect of the whole assets of
its Latudi River Power Station by the Borrower, the debt under this Contract
shall be secured by Fujian Huabang
Hydroelectric Investment Co., Ltd. with a guarantee with joint liability,
with the execution of the Contract of Guarantee with the contract number of No. FJ001622010259. 

 
	
  

 	
  

 
	
 9.2

 	
 If any
 event occurs on the Borrower or the guarantor which, in the opinion of the
 Lender, could affect its ability to perform the contract, or the security
 contracts become invalid, canceled or rescinded, or the financial status of
 the Borrower or security-providers worsens or the Borrower or
 security-providers involves in material action or arbitration, or otherwise
 which could affect its ability to perform the contract, or the event of
 default by the security-providers occurs under the security contracts or
 other contract with the Lender, or the collateral being depreciated, damaged,
 lost or sealed up which could result in the decrease or loss of the value of
 the collateral, the Lender shall be entitled to request and the Borrower
 shall be obliged to supplement the additional security, supplement or change
 the security-provider etc. to secure the debt under this Contract. 

 
	
  

 	
  

 
	
 10

 	
 Insurance (This clause is optional, and the choice is (1) : (1) applicable, or (2) N/A.) 

 
	
  

 	
  

 
	
  

 	
 The
 Borrower shall take out the insurance with the insurers acceptable to the
 Lender against the risks of the equipments, project construction,
 transportation of goods relating to the project or trade hereunder and occurring
 within the project operation, with the coverage as required by the Lender and
 the insured amount not less than the loan principal hereunder. 

 
	
  

 	
  

 
	
  

 	
 The
Borrower shall provide to the Lender the original of the insurance policy
within 30 days upon effectiveness of this Contract. The Borrower shall not
suspend the insurance for any reason unless and until the loan principal,
interests and expense hereunder are paid off. If the Borrower suspends the
insurance, the Lender shall be entitled to renew or take out the insurance
policy on behalf of the Borrower at the expenses of the Borrower. The
Borrower shall be fully liable for all losses suffered by the Lender due to
such suspension of the insurance.  

 
	
  

 	
  

 
	
  

 	
 The
 Borrower shall notify the Lender in writing within 3 days after it becomes or
 should become aware of occurrence of any insurance accident, and claim
 against the insurer in accordance with the relevant provisions of the
 insurance policy. The Borrower shall bear all losses suffered by the Lender
 due to the Borrower’s failure to timely notify the Lender thereof or claim
 for insurance indemnity or perform its obligation under the insurance policy.
 

 
	
  

 	
  

 
	
  

 	
 Except as
 otherwise agreed, the insurance indemnities shall firstly be used to repay
 the principal and interests of the loan and other expenses payable. 

 
	
  

 	
  

 
	
 11

 	
 Representations and warranties 

 
	
  

 	
  

 
	
 11.1

 	
 The
 Borrower represents: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 It is
 duly registered with the competent administration for industry and commerce
 or competent authority and validly existing, and has the full ability of
 civil rights and acts required for execution and performance of this
 Contract; where the Borrower is the new established legal person for the
 project, its shareholders have good credit without any bad record; where the
 proposed investment project is subject to the requirements of the investor’s
 qualification and operational qualification by the PRC, all such requirements
 have been satisfied. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 Its
 execution and performance of this Contract is its true declaration of intent,
 has obtained legal and valid authorization according to its articles of
 association or other internal management document, and will not violate any
 agreement, contract and other 

 

8

Fixed Assets Loan Contract

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 legal
 documents binding upon the Borrower; it has or will obtain all approvals,
 permits, filings or registrations required for its execution and performance
 of this Contract.

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 The
 Borrower adheres to the principle of good faith, and all documents, financial
 statements, certificates and materials provided by it to the Lender hereunder
 are true, complete, accurate and valid. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
 The
 transaction background under which it applies to the Lender for handling the
 business hereunder is true and legal, and is not for the purpose of money
 laundering. The purpose of the loan and source of repayment are specified and
 lawful. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
 The
 Borrower has good credit without any bad record, and the Borrower does not
 conceal with the Lender any event that may affect its financial standing or
 ability of performance.

 
	
  

 	
  

 	
  

 
	
  

 	
 (6)

 	
 The
 project of loan and the matters of borrowing conform to the laws,
 regulations, regulatory rules and relevant policies in respect of the
 industry, land and environment of the PRC, and the procedures such as the management
 of the legality of the investment project, the examination and approval as
 well as filling etc. have been implemented in accordance with the rules, and
 conform to the relevant rules of the capital fund system of the investment
 project of PRC. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (7)

 	
 Other
matters represented by the Borrower:        /             .  

 
	
  

 	
  

 	
  

 
	
 11.2

 	
 The
 Borrower undertakes:

 
	
  

 	
  

 
	
  

 	
 (1)

 	
 It will
 provide regularly or timely to the Lender its financial statements (including
 but not limited to annual reports, quarterly reports and monthly reports) and
 other relevant materials; and the Borrower undertakes to continue to meet the
 requirements on the financial indicators as follows:                  /                  . 

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 It will
 draw, pay and use the loan as agreed in this Contract. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 If the
 Borrower has already executed the counter security agreement or similar
 agreement with the guarantor of this Contract in respect of its obligations
 of guarantee, such agreement shall not affect any rights of the Lender under
 this Contract. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
 It will
 be subject to the inspection and supervision of the Lender upon the credit
 loan, and provide adequate assistance and cooperation. During the period from
 the effective date of this Contract to the date on which all the principal
 and interests of the loan under this Contract and the relevant fees are paid
 off, the Borrower agrees to authorize the Lender to monitor its account
 opened with the Lender, to inspect and analyze the construction and operation
 of the project, and to carry out the dynamic monitoring to the cash flow of
 the revenue of the project and the whole capital flow. The Borrower shall
 accept the inspection and supervision of the Lender upon the use of the loan
 including the purpose by way of account analysis, certificate inspection and on-site
 investigation etc. and provide cooperation, and summarize and report
 regularly to the Lender the payment and use of the loan pursuant to the
 requirements of the Lender. The date of summarized report shall be:
                   /                  . 

 
	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
 In case
 of occurrence of merger, division, reduction of registered capital, equity
 transfer, external investment, material increase of debt finance, transfer of
 major assets or creditor’s rights and other matters which may affect the
 Borrower’s ability of repayment, the Borrower shall obtain the prior written
 consent of the Lender. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrower shall notify the Lender timely upon the occurrence of the following
 events: 

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A.

 	
 the
 change of the articles of association, business scope, registered capital and
 legal representative of the Borrower or the security-provider; 

 

9

Fixed Assets Loan Contract

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 B.

 	
 the
 change of the mode of business operation such as association in any form,
 foreign joint venture, cooperation, contracting, reorganization,
 restructuring and plan for IPO etc; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 C.

 	
 involvement
 in material action or arbitration, or the property or collateral being sealed
 up, seized or placed under surveillance in accordance with laws, or new
 material debt being established on the collateral; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 D.

 	
 discontinuation
 of business, dissolution, liquidation, winding up, cancellation, revocation
 of the business license and application for bankruptcy etc.; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 E.

 	
 the
 shareholder, director and the current management being alleged involving with
 any major legal case or economic dispute; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 F.

 	
 the
 occurrence of event of default of the Borrower under other contract; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 G.

 	
 the
 occurrence of the operating difficulties and financial deterioration etc.. 

 

	
  

 	
  

 	
  

 
	
  

 	
 (6)

 	
 The
 sequence of its repayment of the Lender’s loan hereunder has precedence over
 the loan extended by its shareholders to it, and is not subordinate to the
 debts of the same kind owed to its other creditors. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (7)

 	
 Where the
 after-tax net profit in the relevant fiscal year is zero or negative, or the
 after-tax net profit is not enough to compensate the accumulated loss of the
 previous fiscal years, or the pre-tax profit has not been used to repay the
 due principal and interests and fees in such fiscal year, or the pre-tax
 profit is not enough to pay off the principal and interests in the next
 period, the Borrower will not distribute any dividend and bonus to its
 shareholders in any way; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (8)

 	
 The
 Borrower will not dispose of its own assets in a manner impairing its ability
 of repayment; the total amount of securities provided by it will not be
 higher than __0.5__ times of its net assets, and the total amount of
 securities and the amount of single security will not exceed the limit as
 stipulated in its articles of association; the Borrower shall not provide
 security to the third party with the assets formed by the loan under this
 Contract without the consent of the Lender. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (9)

 	
 Unless
 for the purpose agreed in this Contract or with the consent of the Lender,
 the Borrower shall not transfer the loan under this Contract to the account
 with the same name and the affiliate’s account. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In case
 of transfer to the account with the same name and the affiliate’s account,
 the Borrower shall provide corresponding evidential documents. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (10)

 	
 In
 respect of the loan under this Contract, the conditions of loan such as the
 security conditions, pricing of the loan interest rate, and the sequence of
 debt service etc. which provided by the Borrower to the Lender shall not be
 less favorable than the conditions which the Borrower provides and will
 provide to any other financial institutions. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (11)

 	
 Other
 matters undertaken by the Borrower: (1) Without the consent of the Lender,
 the Borrower shall neither increase the external financing and provide any
 external security, nor grant the others a mortgage on the assets of Latudi
 River Power Station; (2) Following the replacement of the existing loan owed
 by the Borrower to the Agriculture Bank of China with the loan under this
 Contract, the recovery of the power sales income of the Borrower shall be all
 transferred to the account of the Lender’s bank; (3) All the Borrower’s cash
 flow generated from the Latudi River Power Station shall be used to repay the
 due principal and interests owed to the Lender’s bank as priority. Prior to
 the repayment of the due principal and interests of the current loan owed to
 the Lender’s bank as scheduled, the Borrower shall not pay the fixed return
 or dividend to the shareholders in any way; (4) The Borrower’s shareholder,
 Fujian Huabang Hydroelectric 

 

10

Fixed Assets Loan Contract

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Investment Co., Ltd., shall
 increase RMB 10,000,000 to the registered capital or capital reserve of the
 Borrower; Prior to the repayment of all the principal and interests of the
 loan to the Lender’s bank by the Borrower, the balance of the borrowing to
 the Borrower by Fujian Huabang Hydroelectric Investment Co., Ltd. shall not
 be less than RMB 8,000,000; (5) The prepayment of the Borrower shall be
 notified to the Lender; (6) Within 3 months following the date of the initial
 utilization by the Borrower under this Contract, the Borrower shall complete
 properly all the mortgage procedures in respect of the whole assets of Latudi
 River Power Station and pledge procedures of the right to collect electricity
 fees, and the collateral must take out the property insurance with the Lender
 as the first beneficiary; Overdue completion shall be deemed as the default
 of the Borrower, the Lender shall be entitled to collect the loan and the
 corresponding liquidated damages. (7) The Lender shall be entitled to adjust
 the credit extension plan (including announce the acceleration of the loan)
 in consideration of the mortgage, the recovery of the tariff and if the loan
 can be repaid duly etc. 

 

	
  

 	
  

 
	
 12

 	
 Disclosure of related-party transaction in the group of the
 Borrower 

 
	
  

 	
  

 
	
  

 	
 1.     The
 Borrower is not the group client determined by the Lender pursuant to the
 Guidelines on the Management of Risks of Credits Granted by Commercial Banks
 to Group Clients (“Guidelines”). The Borrower shall report in a timely manner
 to the Lender of the transaction related with more than 10% net assets which
 includes the associate relationship of the parties to the transaction, the
 transaction project and its nature, the amount of the transaction or the
 corresponding ratio, and the pricing policy (including the transaction
 without any amount or with only nominal amount).

 
	
  

 	
  

 
	
  

 	
 The
 Lender shall be entitled to decide, at its own discretion, to stop to extend
 the loan not drawn by the Borrower and take back part or whole of the
 principal and interests of the loan in advance, if the Borrower is under any
 of the following circumstances: where based on false contracts with related
 parties, it uses such creditor’s right as any bill receivable or account
 receivable without true trade background to handle discount or pledge with
 the bank so as to illegally obtain the loan or credit of the bank; where it
 is subject to such events as major merger, acquisition or reorganization,
 which may affect the safety of the loan as deemed by the Lender; where it
 intentionally escapes the creditor’s right of the bank through related-party
 transaction; other circumstances as descried in Article 18 of the Guidelines.

 

	
  

 	
  

 	
  

 
	
 13

 	
 Events of default and handling 

 
	
  

 	
  

 
	
 13.1

 	
 Any of
 the following events shall constitute or be deemed as an event of breach by
 the Borrower hereunder: 

 
	
  

 	
  

 
	
  

 	
 (1)

 	
 The
 Borrower fails to perform its obligations of payment and repayment pursuant to
 the provisions contained herein; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 The
 Borrower fails to draw and use the loan in the agreed method hereunder or
 fails to use the loan for the agreed purpose hereunder, or the Borrower
 violates the provisions hereof and break up the whole amount into small
 amounts in order to avoid the entrusted payment by the Lender; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 Any
 representation made by the Borrower herein is untrue or violates any
 undertaking made by the Borrower herein; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
 In case
 of occurrence of the circumstances as described in Clause 11.2 (5) hereof,
 the Lender deems it will affect the financial condition and ability of
 performance of the Borrower, but the Borrower fails to provide new security
 and replace the guarantor pursuant to the provisions of this Contract; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
 Any event
 of default occurs with respect of the Borrower under other contracts signed
 by it and the Lender or other branches of Bank of China Limited; 

 

11

Fixed Assets Loan Contract

	
  

 	
  

 	
  

 
	
  

 	
 (6)

 	
 The
 security-provider violates the provisions of the security contracts, or any
 event of default occurs with respect of the security-provider under other
 contracts signed by it and the Lender or other branches of Bank of China
 Limited; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (7)

 	
 The
 discontinuation of business or the event of dissolution, cancellation or
 bankruptcy occurs with respect of the Borrower; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (8)

 	
 The
 Borrower involves or may involve in material economic dispute, action or
 arbitration, or its assets is sealed up, seized or enforced, or being on file
 for investigation or punished in accordance with laws by the judicial
 authorities or tax and industrial and commercial authorities, which already
 or may affect its performance of the obligations hereunder; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (9)

 	
 The
 abnormal change, missing or being investigated or restricted of the personal
 freedom in accordance with laws by the judicial authorities occurs to the
 main investor or key management of the Borrower, which already or may affect
 its performance of the obligations hereunder; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (10)

 	
 The
 capital fund of the project fails to be made in place as scheduled or
 proportionately, or fails to be supplemented with the time limit set out by
 the Lender; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (11)

 	
 The
 progress of the project lags behind the progress of the use of the fund; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (12)

 	
 The
 quality of construction of the project does not conform to the national or
 industrial standards; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (13)

 	
 The
 credit standing of the Borrower has decreased, or the ability of making
 profits, debt service, operation and the financial indicators such as cash
 flow etc. has deteriorated, which is beyond the indicator limit or other
 financial agreement hereunder; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (14)

 	
 The
 Borrower violates other provisions in respect of the rights and obligations
 of the party hereunder. 

 

	
  

 	
  

 	
  

 
	
 13.2

 	
 In case
 of occurrence of any of the above events of default, the Lender shall be
 entitled to take one or more of the following measures based on the specific
 circumstances: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 Require
 the Borrower or the security-provider to rectify its default within a
 stipulated time limit. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 Reduce,
 suspend, cancel or terminate the credit line granted to the Borrower in part
 or in whole. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 Suspend
 or terminate acceptance of the Borrower’s application for utilization under
 this Contract and other contracts between the Lender and the Borrower in part
 or in whole; suspend or terminate in part or in whole extending and handling
 any loan and trade financing not extended and handled. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
 Accelerate
 in part or in whole the principal, interests and other payables of the loan/trade
 financing outstanding under this Contract and other contracts between the
 Lender and Borrower. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
 Negotiate
 with the Borrower to supplement the conditions of granting and payment of the
 loan, of the Lender shall be entitled to change the conditions of the
 granting and payment of the loan based on the credit standing of the
 Borrower, such as decreasing the minimum amount of entrusted payment etc. or
 the Lender shall be entitled to require to transfer back the fund paid with
 default etc. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (6)

 	
 Terminate
 or cancel this Contract, and terminate other contracts between the Borrower
 and Lender in part or in whole. 

 

12

Fixed Assets Loan Contract

	
  

 	
  

 	
  

 
	
  

 	
 (7)

 	
 Request
 the Borrower to indemnify the losses Lender incurs due to the Borrower’s default.
 

 
	
  

 	
  

 	
  

 
	
  

 	
 (8)

 	
 Only by
 giving a prior or subsequent notice, transfer the amounts in the accounts
 opened by the Borrower with the Lender and other branches of Bank of China
 Limited to service all or part of the debts owed to the Lender under this
 Contract. The un-matured amount in such accounts shall be deemed mature in
 advance. If the currency in such accounts is not the same as that used by the
 Lender for settlement, the amounts in such accounts shall be converted at the
 quoted exchange rate for settlement and sales of foreign exchange applicable
 to the Lender at the time of transfer. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (9)

 	
 Exercise
 the real right of security; request the guarantor to bear the responsibility
 of guarantee. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (10)

 	
 Other
 measures necessary and practicable as deemed by the Lender. 

 

	
  

 	
  

 
	
 14

 	
 Waiver 

 
	
  

 	
  

 
	
  

 	
 No
 failure by either party to exercise its rights hereunder in part or in whole
 or require the other party to perform or bear part or whole obligations and
 liabilities shall operate as waiver by such party of such rights or such
 obligations and liabilities. 

 
	
  

 	
  

 
	
  

 	
 No
 forbearance and grace or delay by either party in exercise of the rights
 hereunder shall affect any of its rights available according to this Contract
 or laws and regulations, nor deemed as waiver of such rights. 

 
	
  

 	
  

 
	
 15

 	
 Change, modification and termination 

 
	
  

 	
  

 
	
  

 	
 This
 Contract may be changed or modified in writing upon agreement by both Parties
 through consultation. Any change or modification shall constitute integral
 part of this Contract. 

 
	
  

 	
  

 
	
  

 	
 Except as
 otherwise set out by laws and regulations or agreed by both Parties, this
 Contract shall not be terminated unless and until all the rights and
 obligations hereunder are completely performed. 

 
	
  

 	
  

 
	
  

 	
 Except as
 otherwise set out by laws and regulations or agreed by both Parties, the
 invalidity of any terms hereof shall not affect the validity of the remaining
 terms hereof. 

 
	
  

 	
  

 
	
 16

 	
 Applicable law and dispute settlement 

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
 Any dispute
arising out of or in connection with execution and performance of this
Contract following the effectiveness of this Contract may be settled by both
Parties through consultation. Where such dispute fails to be settled through
consultation, either party may adopt the method of 2 as follows:  

 
	
  

 	
  

 
	
 16.1

 	
 Submit
the dispute to    /             Arbitration Commission for arbitration in
accordance with the arbitration rules which is in effect at the time of
application for arbitration in        /      (place of arbitration).  

 
	
  

 	
  

 
	
 16.2

 	
 Bring a
 lawsuit in the people’s court of the place where domicile of the Lender or
 other branches of Bank of China Limited performing the rights and obligations
 under this Contract or a single agreement is located. 

 
	
  

 	
  

 
	
 16.3

 	
 Bring a
 lawsuit in the competent people’ court having jurisdiction over such dispute.
 

 

13

Fixed Assets Loan Contract

	
  

 	
  

 	
  

 
	
  

 	
 If the
 remaining terms hereof other than those under dispute are not affected by
 such dispute during the period of dispute, such remaining terms shall still
 be performed. 

 
	
  

 	
  

 
	
 17

 	
 Expenses 

 
	
  

 	
  

 
	
  

 	
 Except as
 otherwise determined according to law or agreed by both Parties, the expenses
 for execution, performance and dispute settlement of this Contract (including
 but not limited to attorney fees) shall be borne by the Borrower. 

 
	
  

 	
  

 
	
 18

 	
 Appendices 

 
	
  

 	
  

 
	
  

 	
 The
 following Appendix and other appendices as confirmed by both Parties shall be
 integral part of this Contract and have the same legal validity as this
 Contract. 

 
	
  

 	
  

 	
  

 
	
  

 	
 1

 	
 The
 Application for Utilization (Form): 

 
	
  

 	
  

 
	
 19

 	
 Miscellaneous 

 
	
  

 	
  

 
	
 19.1

 	
 The
 Borrower shall not transfer any of its rights and obligations hereunder to
 any third party without written consent of the Lender. 

 
	
  

 	
  

 
	
 19.2

 	
 If the
 Lender needs to entrust other branches of Bank of China Limited to perform
 the rights and obligations hereunder, or transfer the loan hereunder to other
 branches of Bank of China Limited who will assume and manage the loan, the
 Borrower shall accept the same. Other branches of Bank of China Limited as
 entrusted by the Lender or assuming the loan hereunder shall have the right
 to exercise all rights hereunder, bring a lawsuit in the people’s court in
 their own names and apply for arbitration or enforcement in case of
 occurrence of any dispute hereunder. 

 
	
  

 	
  

 
	
 19.3

 	
 This
 Contract shall be legally binding upon and inure to the benefits of both
 Parties and their respective heirs and permitted assigns without prejudice to
 other provisions contained herein. 

 
	
  

 	
  

 
	
 19.4

 	
 Except as
 otherwise agreed, the domiciles of both Parties as specified in this Contract
 shall be the correspondence and contact addresses. In case of any change
 thereof, either party shall timely notify the other party in writing. 

 
	
  

 	
  

 
	
 19.5

 	
 The
 transaction hereunder shall be based on independent benefits of each party.
 If other parties under such transaction shall constitute related parties of
 the Lender in accordance with the relevant laws, regulations and regulatory
 requirements, the parties shall not impair the fairness of such transaction
 by taking advantage of such related-party relationship. 

 
	
  

 	
  

 
	
 19.6

 	
 All
 captions and name of business in this Contract are inserted only for the
 convenience of reference, and shall not affect the interpretation of the
 terms hereof and the rights and obligations of both Parties. 

 
	
  

 	
  

 
	
 19.7

 	
 The
 Lender shall be entitled to, in accordance with the relevant laws,
 regulations and regulatory rules, provide the relevant information of this
 Contract and the Borrower to the Credit Reference System of People’s Bank of
 China and other credit information data base duly established, for the
 inquiry and use by the properly qualified organization and individual in
 accordance with laws. The Lender shall also be entitled to inquire the
 relevant information of the Borrower through the Credit Reference System of
 People’s Bank of China and other credit information data base duly
 established. 

 
	
  

 	
  

 
	
 19.8

 	
 If the
 date of utilization or repayment is a public holiday, then it shall be
 postponed accordingly to the first Business Day following the public holiday.
 

 

14

Fixed Assets Loan Contract

	
  

 	
  

 
	
 20

 	
 Effectiveness 

 
	
  

 	
  

 
	
  

 	
 This
 Contract shall become effective on the date when it is signed by the legal
 representative (responsible person) or authorized signatory and affixed with
 the common seal of each party.

 
	
  

 	
  

 
	
  

 	
 This
Contract is executed in quintuplicate, of which each party holds one, being
equally authentic. 

 

	
  

 	
  

 
	
 The Borrower: Fugong Xineng Power Development Co., Ltd.

 	
 Lender: Bank of China Limited Fujian Branch

 
	
  

 	
  

 
	
 (stamp)

 	
 (stamp)

 
	
  

 	
  

 
	
 Authorized signatory: _________

 	
 Authorized signatory: _________ 

 
	
  

 	
  

 
	
 Date: 15 July 2010 

 	
 Date: 15 July 2010 

 

15

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