Document:

EXHIBIT
      10.16

    Employment
      Contract

    

    Party
      A:
      Henan
      Jinding Chemical Industry Co., Ltd.

    

    Party
      B: Li
      Donglai

    

    To
      establish a labor relationship and define the rights and obligations of the
      two
      parties, Party A and Party B conclude this Contract based on voluntariness,
      consultation and consistency, in accordance with the Labor
      Law of the People’s Republic of China,
      as well
      as related regulations.

    

    Article
      1
      Term of
      the Labor Contract

    

    
      	1.	
              The
                term of this Contract is 5
                year
                from October
                1, 2003
                to
                September 30, 2008 .

            

    

     

    
      	2.	
              This
                Contract can be renewed by the two parties through consultation one
                month
                prior to the expiration.

            

    

     

    
      	3.	
              Where
                either party considers it unnecessary to renew the employment contract
                after the expiration of this Contract, such party shall notify in
                writing
                the other party one month prior to the expiration of this
                Contract.

            

    

     

    
      	4.	
              Where
                Party B resigns prior to the expiration of this Contract, a penalty
                of
                RMB200,000 shall be imposed on it.

            

    

     

    Article
      2
      Contents
      of Work

    

    
      	1.  	
              Through
                examination, Party A agrees to employ Party B as one of its employees
                for
                the need of work. Party B agrees to work for Party A as the Deputy
                General Manager.

            

    

    
      	 	 

    

    
      	2.  	
              Party
                A may, according to its need for work as well as Party B’s operations,
                capability of work and performance, adjust Party B’s working
                post.

            

    

     

    Article
      3
      Social
      Insurance and Benefits

    

    
      	1.  	
              Paragraph
                3 of Article 5 under this Contract shall be executed with regard
                to social
                insurance.

            

    

    
      	 	 

    

    
      	2.  	
              Party
                B enjoys the benefits prescribed by Party
                A.

            

    

    
      	 	 

    

    
      	3.  	
              Party
                A shall, based on work situations, arrange Party B to rest where
                Party B
                is required to work on festivals or
                holidays.

            

    

    
      	 	 

    

    
      	4.  	
              The
                legal festivals or holidays, as well as leave for wedding or for
                arranging
                funeral, shall be deemed as paid leave of
                period.

            

    

     

    Article
      4
      Labor
      Protection and Labor Conditions

    

    
      	1.	
              Party
                A shall provide Party B with the working environment and labor protection
                conditions stipulated by the state in respect of labor security and
                health.

            

    

    
      	 	 

      	2.	
              Party
                A may arrange Party B to take part in necessary business training
                according to its need for work.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    Article
      5
      Work
      Hours and Remuneration

    

    
      	1.  	
              Party
                B works 8 hours each day. Where Party B is required to work over
                time, the
                working hours can be appropriately
                extended.

            

    

    
      	 	 

    

    
      	2.  	
              Party
                A determines the annual salary payment standard for Party B in accordance
                with regulations of its wage management system. The annual salary
                for the
                period of probation is RMB50,000
                and
                the annual salary after the probation is RMB80,000
                .

            

    

    
      	 	 

    

    
      	3.  	
              Party
                A shall release the salary to Party B through rigorous assessment
                based on
                Party B’s current duty and post.

            

    

    
      	 	 

    

    
      	4.  	
              Party
                A can, according to its business conditions as well as Party B’s skills
                and working efficiency, adjust the level of wage to Party B based
                on
                relevant provisions of Party A.

            

    

    
      	 	 

    

    
      	5.  	
              Where
                Party A assigns Party B to work at its subordinate company for the
                need of
                work, Party B can enjoy relevant subsidies at such company of Party
                A in
                accordance with Party A’s related
                provisions.

            

    

    

    Article
      6
      Labor
      Discipline

    

    
      	1.  	
              Party
                B shall comply with the laws, rules and regulations of the
                state.

            

    

    
      	 	 

    

    
      	2.  	
              Party
                B shall comply with the rules and regulations and labor disciplines
                prescribed by Party A and voluntarily obey the administration and
                education of Party A.

            

    

    
      	 	 

    

    
      	3.  	
              In
                case that Party B breaks the rules and regulations and labor disciplines
                of Party A, Party A will impose relevant punishment on Party B according
                to related provisions.

            

    

    

    Article
      7 Conditions
      for Cancellation and Termination of the Labor Contract

    

    
      	1.  	
              The
                Labor contract can be cancelled by Party A and Party B through unanimous
                consultation.

            

    

    
      	 	 

    

    
      	2.  	
              In
                the event of any of the following circumstances, Party A may cancel
                the
                Labor contract:

            

    

    
      	 	 

    

    
      	1)  	
              It’s
                proved that Party B fails to be qualified for employment conditions
                in the
                period of probation;

            

    

    
      	 	 

    

    
      	2)  	
              Party
                B materially breaks labor disciplines or Party A’s rules and
                regulations;

            

    

    
      	 	 

    

    
      	3)  	
              Party
                B neglects its duty or engages in malpractice materially, which results
                in
                substantial damages to interests of Party A;
                and

            

    

    
      	 	 

    

    
      	4)  	
              Party
                B is investigated with regard to criminal liabilities according to
                law.

            

    

    
      	 	 

    

    
      	3.  	
              In
                the event of any of the following circumstances, Party A may cancel
                the
                Labor contract, but shall notify Party B in writing 30 (thirty) days
                in
                advance:

            

    

    
      	 	 

    

    
      	1)  	
              Party
                B is ill, or injured at work, and after treatment, is unable to undertake
                the original work or work separately arranged by Party
                A;

            

    

    
      	 	 

    

    
      	2)  	
              Party
                B is unqualified for its work, and remains unqualified through training
                or
                adjustment in its work post; and

            

    

    
      	 	 

    

    
      	3)  	
              Material
                changes to the objective conditions on which the Labor contract is
                based
                occur, causing that the original Labor contract cannot be performed,
                and
                an agreement cannot be achieved by the parties concerned with regard
                to
                alteration in the Labor
                contract.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    
      	4.  	
              Party
                B shall, in the event of requirement for cancellation of the Labor
                contract, notify Party A in writing 30 (thirty) days in
                advance.

            

    

    
      	 	 

    

    
      	5.  	
              In
                the event of any of the following circumstances, Party B can cancel
                the
                Labor contract by giving notice to Party A at any
                time:

            

    

    
      	 	 

    

    
      	1)  	
              Within
                the period of probation;

            

    

    
      	 	 

    

    
      	2)  	
              Party
                A forces Party B by means of violence, threat, or illegal limitation
                of
                personal freedom; and

            

    

    
      	 	 

    

    
      	3)  	
              Party
                A fails to pay the labor remuneration or provide the labor conditions
                in
                accordance with stipulated under the Employment
                Contract.

            

    

    
      	 	 

    

    
      	6.  	
              This
                Contract shall terminate at the expiration of it. Where there’s need of
                work, the labor contract can be renewed by Party A and Party B through
                unanimous consultation.

            

    

    

    Article
      8
      Liabilities for Breach of Contract

    

    Once
      established, this Contract must be strictly performed by the two parties. In
      the
      event of any breach of the contract, liabilities shall be ascertained in
      accordance with relevant provisions, and when an economic loss is incurred
      to
      the other party, the breaching party shall make compensation based on the
      consequences as well as the severity of such breach liabilities.

    

    Article
      9
      Settlement of Labor Dispute

    

    Any
      labor
      dispute arising out of the performance of this Contract can be submitted to
      a
      labor dispute arbitration committee having jurisdiction for arbitration. The
      party that requires arbitration shall, within 60 (sixty) days as of the date
      when such labor dispute occurs, submit a written application to the labor
      dispute arbitration committee.

    

    Article
      10
      Matters
      not detailed in this Contract shall be executed in accordance with the
      applicable laws, rules and regulations, and policies of the state.

    

    Article
      11
      This
      Contract is in duplicate with each party holding one copy.

    

    Article
      12 Other
      issues that are considered necessary by both parties.

    

    With
      the
      seals and signatures on behalf of:

     

    
      	Party A: 	 	Party B: 
	 	 	 
	/s/ Henan Jinding Chemical Industry
              Co.,
              Ltd. 	 	/s/ Li
              Donglai

    

     

    Dated
      on
      September 28, 2003Unassociated Document

    Patent
      License Agreement

     

    AGREEMENT
      made this 6th day of October, 2006 by and between GE Infrastructure Technology
      LLC, GE Infrastructure Technology International Inc., (hereinafter collectively
      called “LICENSOR”), a limited liability company and a corporation both organized
      and existing under the laws of Delaware, USA, and EU
      Energy
      Inc.,
      (hereinafter called “LICENSEE”), a company organized and existing under the laws
      of
      Nevada,
      USA.

     

    RECITALS

     

    
      	1.	
              LICENSOR
                is a wholly owned AFFILIATE, as defined below, of the General Electric
                Company (GE), and GE has transferred to LICENSOR the responsibility
                to
                safeguard intellectual property relating to wind turbines manufactured
                and
                sold by the GE Wind Energy GmbH and GE Wind Energy LLC AFFILIATES
                of its
                GE Energy business including the rights to license such intellectual
                property to third parties.

            

    

     

    
      	2.	
              LICENSOR
                is the sole and exclusive owner of, or has the right to license,
                the
                LICENSOR PATENTS (defined below)
                and the counterparts thereof in other
                countries.

            

    

     

    
      	3.	
              LICENSEE
                has advised LICENSOR that it desires to obtain certain licenses under
                LICENSOR PATENTS, for
                the consideration as provided
                below.

            

    

     

    
      	4.	
              LICENSOR
                desires to
                grant such license
                all on the terms and subject to the conditions contained
                herein.

            

    

     

    NOW,
      THEREFORE, in consideration of the promises and the mutual covenants hereinafter
      contained, the parties hereto agree as follows:

     

    AGREEMENT

     

    ARTICLE
      1

    DEFINITIONS

     

    
      	
              1.1

            	
              “LICENSOR
                PATENTS” means the
                patents and applications listed in Attachment 1. 

            

    

     

    
      	
              1.2

            	
              “LICENSED
                TERRITORY” means the countries where LICENSOR PATENTS listed in Attachment
                1 have issued.

            

    

     

    
      	
              1.3

            	
              “AFFILIATE”
                means any corporation, partnership, joint venture, limited liability
                company, or other entity or person
                which directly or indirectly controls, is controlled by, or is under
                common control with LICENSOR or LICENSEE, respectively, or any of
                their
                respective Affiliates on the date
                of
                this Agreement or at any time during the term
                of
                this Agreement, but only for so long as such relationship exists,
                but
                excluding any such entity acquired by LICENSEE after the effective
                date of
                this Agreement that is a direct competitor of LICENSOR’s GE Wind Energy
                business in the manufacture and sale of wind turbines, including
                the
                entities in Attachment 3. As
                used herein, the term “control” shall mean the ability to direct the
                business of a company and shall be presumed in the case of ownership,
                directly or indirectly, of shares of stock having more than fifty
                percent
                (50%) of the voting power entitled to vote for the election of directors
                in the case of a corporation, and more than fifty percent (50%) of
                the
                voting power and interest in profits in the case of a business entity
                other than a corporation.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              1.4

            	
              “LICENSED
                PRODUCTS” means the D6 and D8 wind turbines and
                components and systems thereof and hardware and software used
                therein
                described in Attachments 4 and 5 respectively, and
                reasonable improvements and variations thereof, subject
                to LICENSOR’s approval, which approval shall not be unreasonably
                withheld,
                where the sale or manufacture thereof in the LICENSED TERRITORY would
                infringe at least one issued and valid claim of LICENSOR
                PATENTS.

            

    

     

    
      	1.5	
              “MW”
                means megawatts rated power.

            

    

     

    ARTICLE
      2

    PATENT
      LICENSE

     

    
      	
              2.1

            	
              LICENSOR
                hereby grants and agrees to grant to LICENSEE and LICENSEE’s AFFILIATES, a
                nonexclusive license, right and privilege under LICENSOR PATENTS,
                to make,
                have made, use, sell, service or otherwise dispose of LICENSED PRODUCTS,
                and to have made components for use in LICENSEE’s LICENSED PRODUCTS, in
                the LICENSED TERRITORY, including units of LICENSED PRODUCTS which
                are in
                the process of manufacture on the date of termination or expiration
                of
                this Agreement. [**]

            

    

     

    
      	
              2.2

            	
              LICENSOR
                makes
                no
                representation to
                the LICENSEE that
                exercise of the licenses granted herein will not infringe patents
                of third
                parties, and LICENSOR,
                shall
                not be liable, either directly or as an indemnitor or otherwise,
                to the
                other or
                any third party as a consequence of any infringement of third party
                patents.

            

    

     

    
      	
              2.3

            	
              LICENSOR
                shall
                not be held responsible by LICENSEE
                for the validity of LICENSOR PATENTS should
                such validity be contested by third parties or should any LICENSOR
                PATENTS
                not
                be issued or be prematurely terminated for any cause whatsoever.
                

            

    

     

    
      	
              2.4

            	
              Both
                Parties shall hold
                the conditions of this Agreement in confidence, and shall not disclose
                the
                conditions of this Agreement except to its financial and legal
                representatives, without the
                other
                Party’s prior
                written consent.

            

    

     

    
      	
              2.5

            	
              LICENSOR
                and LICENSEE each represent and warrant that they are duly authorized
                to
                execute, deliver and perform this
                Agreement.

            

    

     

    ARTICLE
      3

    COMPENSATION

     

    
      	
              3.1

            	
              LICENSEE
                shall pay to LICENSOR
                as royalties the
                fees provided in Attachment 2. 

            

    

     

      
        

      

    

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

     

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

     

    
      	
              3.2

            	
              LICENSEE
                agrees to make a written report to LICENSOR semi-annually during
                the term
                of this Agreement by May 15th and November 15th
                by
                email or fascimile to the addresses provided in Article 6 Notices.
                Each
                report shall state the quantity of LICENSED PRODUCTS in the respective
                LICENSED TERRITORY sold or otherwise disposed of by LICENSEE for
                the prior
                six (6) months. LICENSEE further agrees to make a written report
                to
                LICENSOR within thirty (30) days after the date of expiration or
                any
                termination of this Agreement stating the quantity of LICENSED PRODUCTS
                in
                the respective LICENSED TERRITORY sold or otherwise disposed of by
                LICENSEE prior to the date of expiration or termination and not previously
                reported to LICENSOR. LICENSED PRODUCTS sold or otherwise disposed
                of
                prior to the expiration or termination of this Agreement shall include
                units of LICENSED PRODUCTS which are in the process of manufacture
                or for
                which the components have been ordered. Each report shall include
                a
                computation of the royalty due to LICENSOR under Paragraph 3.1. Each
                report shall be made whether or not sales or other dispositions have
                been
                made during such period. LICENSOR shall invoice LICENSEE for royalties
                due, and LICENSEE shall pay to LICENSOR the royalty then accrued
                under
                said Paragraph 3.1 within 30 days after receipt of such invoice.
                It is
                also provided that, upon expiration or termination of this Agreement,
                all
                LICENSED PRODUCTS which LICENSEE has manufactured prior to the date
                of any
                such termination or expiration, and which LICENSEE has not previously
                sold
                or otherwise disposed of prior thereto, shall be considered as having
                been
                otherwise disposed of during the term of this Agreement, and accordingly
                shall be subject to the payment of the royalty provided for in Paragraph
                3.1.

            

    

     

    
      	
              3.3

            	
              LICENSEE
                agrees to keep records showing the quantity of LICENSED PRODUCTS
                sold or
                otherwise disposed of during the term of this Agreement and other
                related
                records in sufficient detail to enable the royalty payable hereunder
                by
                LICENSEE to be determined. LICENSEE further agrees to permit its
                applicable records to be examined from time to time upon reasonable
                prior
                notice, but not more often than once a year, to the extent necessary
                to
                verify the accuracy and completeness of the reports provided for
                in
                Paragraph 3.2 and the royalty due and payable hereunder. Such examination
                shall be made at the expense of LICENSOR by an auditor appointed
                by
                LICENSOR.

            

    

     

    
      	
              3.4

            	
              Payments

            

    

     

    
      	 	
              3.4.1

            	
              All
                payments to be made to LICENSOR by LICENSEE under this Agreement
                shall be
                made in United States Dollars by telegraphic transfer to LICENSOR
                to
                

            

    

     

    [*
      *]

     

    
      	 	
              3.4.2

            	
              In
                the event, however, that any government (other than United States
                federal,
                state and local governments) imposes any income tax on payments by
                LICENSEE to LICENSOR and requests LICENSEE to withhold such tax from
                such
                payments, LICENSEE may deduct such tax from such payments up to the
                rate
                of the United States corporation income tax then payable by LICENSOR
                on
                such payments. LICENSEE
                agrees to furnish LICENSOR with certified statements, receipts and
                other
                supporting data as may be required by United States Tax Authorities
                to
                establish that such tax has been
                deducted.

            

    

     

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

      
        
          
          

        

        
          -
            3
            -

          
            

          

        

        
          
          

        

      

    

     

    
      	
              3.5

            	
              In
                the event that any royalty payable under
                this Agreement is not paid by the date payment is due, LICENSEE shall
                also
                pay interest on such royalty for the period from the due date to
                the date
                payment is actually made at a per annum rate equal to two percent
                plus the
                prime rate quoted by the Chase Manhattan Bank of New York, N.Y. on
                the
                date payment was due.

            

    

     

    
      	
              3.6

            	
              For
                the purposes of this Agreement, LICENSED PRODUCTS shall be considered
                “sold” when shipped by LICENSEE to customer or customers designated site,
                and LICENSED PRODUCTS shall be considered “otherwise disposed of” when
                LICENSED PRODUCT is transferred for value to a party other than LICENSEE,
                or put into commercial use by
                LICENSEE.

            

    

     

    ARTICLE
      4 

    TERM
      AND TERMINATION

     

    
      	
              4.1

            	
              This
                Agreement shall become effective upon its execution by both
                parties.

            

    

     

    
      	
              4.2

            	
              Unless
                it is terminated earlier in accordance with Paragraph 4.3 or 4.4,
                this
                Agreement and the licenses granted hereunder shall continue in full
                force
                and effect until the date of expiration or final determination of
                invalidity by a court of competent jurisdiction of
                the last-to-expire of LICENSOR PATENTS, and shall thereupon
                expire.

            

    

     

    
      	
              4.3

            	
              In
                the event LICENSEE fails
                or becomes unable to substantially perform the obligations or undertakings
                to be performed by it under this Agreement and such default or inability
                is not cured within thirty (30) days after notice from LICENSOR
                specifying
                the nature of the default, then LICENSOR shall
                have the right to terminate this Agreement and the license granted
                hereunder by giving ten (10) days written
                notice. Notwithstanding the terms of this paragraph 4.3, under any
                and all
                circumstances, LICENSOR shall give to LICENSEE the full benefit of
                any
                payments made by LICENSEE in accordance with Table 1 of Attachment
                2
                herein. For example, for each Installment payment made for the Initial
                Fee
                in Table 1 of Attachment 2, the license and rights granted herein
                shall
                apply to a respective one third of the Initial MW and Installed MW’s in
                Attachment 2.

            

    

     

    
      	
              4.4

            	
              In
                the event there is a substantial direct or indirect change in ownership
                or
                operation of LICENSEE, as a result of merger, acquisition, consolidation
                or otherwise, LICENSEE shall notify LICENSOR.

            

    

     

    
      	
              4.4

            	
              Upon
                termination of this Agreement under Paragraph 4.3 or 4.4, or expiration
                thereof as provided herein, all rights granted and obligations undertaken
                hereunder shall terminate forthwith except: 

            

    

     

    4.4.1 LICENSEE’s
      obligation to make payments, submit reports and permit auditing of its records
      in accordance with the provisions of Article 3; provided, however, that the
      provisions of Paragraph 3.3 shall continue in effect only for a period of two
      years from the date of such termination or expiration.

     

    
      
        
        

      

      
        -
          4
          -

        
          

        

      

      
        
        

      

    

     

    4.4.2 The
      provisions of Article 5 and of Paragraphs 2.2, 2.3, 2.4 and 2.5 of Article
      2.

     

    ARTICLE
      5

    TRADEMARKS
      AND TRADE NAMES

     

    In
      using,
      selling, or otherwise disposing of, or promoting the use, sale, or other
      disposition of LICENSED PRODUCTS licensed hereby under LICENSOR PATENTS,
      LICENSEE shall not, without the prior written consent of LICENSOR, directly
      or
      indirectly, use or refer to the trademarks or trade name of LICENSOR or its
      AFFILIATES or to trademarks or trade names similar thereto; provided, however,
      LICENSEE shall be permitted to inform by direct communication to customers
      and
      potential customers that LICENSEE is afforded the rights and privileges set
      forth in this Agreement, but in any event excluding advertising or other
      publications. Any press releases shall be in accordance with either version
      of
      press release presented in Attachment 7. 

     

    ARTICLE
      6

    NOTICES

     

    Any
      notices and other communications required or permitted to be given hereunder
      shall be in writing, and in the case of LICENSEE shall be addressed
      to:

     

    EU
      Energy, Inc.

    Attention:
      Michael
      Porter

    2026
      McGaw Avenue

    Irvine,
      California 92614 

    Fax:
       (949)
      428-8515

    Email: michael.porter@eunrg.com

    

    and
      in
      the case of LICENSOR
      (specifically including reports to be submitted by LICENSEE to LICENSOR pursuant
      to Paragraph 3.2)
      shall be
      addressed
      to:

    

    GE
      Energy

    Attention:
      Mary
      Rankin, President GE Infrastructure Technology 

    300
      Garlington Road, MD 271 D 

    Greenville,
      SC 29602-0648

    Fax:
      864-675-3508

    Email:
      mary.rankin@ge.com

     

    or
      to
      such other address or addresses as either of these companies may from time
      to
      time designate as its address by notice in writing to the other. Such
      notices or other communications may be personally delivered to an officer of
      the
      party at such address or may be transmitted by facsimile to the facsimile
      number, or email to the email address as set forth in this Article provided
      that
      the sender shall retain a record of its transmittal. In
      the
      event that a party despite diligent efforts shall be unable to transmit a notice
      or other communication via facsimile or email it may transmit such notice or
      other communication by courier to the address of the other party as prescribed
      in this Article, which notices or other communication shall be
      effective
      upon
      receipt.

     

    
      
        
        

      

      
        -
          5
          -

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      7

    EXTENSION
      TO AFFILIATES AND SUBLICENSES

     

    LICENSEE
      may extend this Agreement to its AFFILIATES.
      LICENSEE
      will be responsible for identifying AFFILIATES and sublicensees to which this
      Agreement is extended and include the same information for them as for LICENSEE
      in the reports made to LICENSOR under Paragraph 3.3. LICENSEE will be
      responsible for the payment of royalty fees accrued for its AFFILIATES and
      sublicensees under Paragraph 3.2 concurrent with the making of said
      reports. 

     

    ARTICLE
      8

    ASSIGNMENT
      OF AGREEMENT

     

    Except
      as
      provided in Article 7, LICENSEE shall not assign, extend or otherwise transfer
      this Agreement or any right hereunder without the written consent of LICENSOR;
      provided,
      however, that LICENSEE shall have the right to assign this Agreement in its
      entirety as a part of a disposition of that portion of the business as a whole
      that is responsible for making, using and/or selling the LICENSED PRODUCT.
      Neither this Agreement nor any rights granted herein shall
      inure to the benefit of any trustee in bankruptcy, receiver or other successor
      of LICENSEE whether
      by operation of law or otherwise, without the written consent of
      LICENSOR, and
      any
      assignment or transfer without such consent and approval shall be null and
      void.

     

    ARTICLE
      9

    APPLICABLE
      LAW

     

    
      	
              9.1

            	
              This
                Agreement shall be construed, and the legal relations between the
                parties
                hereto determined, in accordance with the law of the State of New
                York,
                U.S.A.

            

    

     

    
      	
              9.2

            	
              Anything
                contained in this Agreement to the contrary notwithstanding, the
                obligations of the parties under this Agreement shall be subject
                to
                compliance with all laws, both present and future, of any government
                having jurisdiction over either party or this Agreement, and to orders,
                regulations, directions or requests of any such government or any
                department, agency, corporation or court
                thereof.

            

    

     

    ARTICLE
      10

    NEGOTIATIONS
      AND ADR

     

    
      	
              10.1

            	
              Before
                any Party to this Agreement commences any legal action or proceeding
                anywhere in the world against the other Party to this Agreement with
                respect to any dispute whatsoever pertaining to this Agreement, the
                LICENSOR PATENTS or the LICENSEE PATENTS (a ‘Dispute’), the Parties agree
                to follow the procedures set forth in this Article 10. 

            

    

     

    
      	10.2	
              PROCEEDINGS

            

    

     

    
      	
            	10.2.1	
              If
                a party believes there is a Dispute, such Party will give the other
                Party
                notice in writing of such alleged
                Dispute.

            

    

     

    
      
        
        

      

      
        -
          6
          -

        
          

        

      

      
        
        

      

    

     

    
      	
            	10.2.2	
              The
                attorneys and technical and business persons of the Party claiming
                the
                Dispute will review the claim and will present their position to
                the other
                Party’s attorneys in writing within 60 Days of receipt of such notice.
                

            

    

     

    
      	
            	10.2.3	
              The
                other Party’s attorneys will respond in writing within 30 Days of receipt
                of such position.

            

    

     

    
      	
            	10.2.4	
              If
                the issue has not been resolved, the other Party may provide to the
                party
                claiming the Dispute, a notice to meet, and the attorneys and technical
                and business persons of both sides will meet and try to work out
                a
                resolution. Such resolution may include, but not be limited to, a
                royalty-free license, a cross-license or a license with a royalty
                rate
                specific to a particular patent or product involved, provided, however,
                that this provision shall not impose an obligation on any Party to
                settle
                a Dispute by means of licensing.

            

    

     

    
      	
            	10.2.5	
              If
                the attorneys and technical and business persons are unable to reach
                a
                solution within 60 Days of such meeting notice, the parties will
                schedule
                a meeting or other communication of their top executives. In such
                a
                meeting or other communication, the attorneys and technical and business
                persons will explain their respective positions to the top executives
                in
                the presence of each other. The top executives of GE Wind Energy
                LLC and
                Composite Technology Corporation, respectively, will then meet or
                otherwise communicate, either privately or with the assistance of
                their
                attorneys and/or technical and business persons, and attempt to devise
                a
                solution. 

            

    

     

    
      	
            	10.2.6	
              If
                the top executives are unable to agree on a solution within 30 Days
                of
                their meeting, the parties agree to submit the matter to settlement
                proceedings under the International Chamber of Commerce (“ICC”) ADR Rules
                in force as of the Effective Date or as thereafter amended. If the
                Dispute
                has not been settled pursuant to the said ICC ADR Rules within six
                months
                following the filing of a Request for ADR, or within such other period
                as
                the Parties may agree in writing, such Dispute shall be finally settled
                under the ICC Rules of Arbitration as provided in Paragraph 10.4
                of this
                Agreement. All negotiations pursuant to this Article 10 shall be
                confidential and treated as compromise and settlement negotiations
                for
                purposes of the Federal Rules of Evidence and state rules of
                evidence.

            

    

     

    
      	10.3	
              Arbitration

            

    

     

    
      	
            	10.3.1	
              In
                the event the parties have failed to resolve their Dispute in an
                amicable
                way according to the requirements and time limits set out in this
                Article
                10, such unresolved Dispute shall be finally settled, without any
                recourse
                to appeal, under the Rules of Arbitration of the ICC by 3 arbitrators
                appointed in accordance with such
                Rules.

            

    

     

    
      	
            	10.3.2	
              The
                Chairman of the Arbitral Tribunal shall be nominated by the
                Party-appointed arbitrators, in consultation with the parties. If
                the
                Party-appointed arbitrators fail to agree on the nomination of the
                Chairman of the Arbitral Tribunal within 30 Days after the appointment
                of
                the second arbitrator, the Chairman of the Arbitral Tribunal shall
                be
                appointed by the ICC International court of Arbitration in accordance
                with
                the Rules of Arbitration of the ICC.

            

    

     

    
      
        
        

      

      
        -
          7
          -

        
          

        

      

      
        
        

      

    

     

    
      	
            	10.3.3	
              The
                seat of arbitration shall be in New York, New York,
                USA.

            

    

     

    
      	
            	10.3.4	
              The
                arbitration shall be in the English
                language.

            

    

     

    
      	
            	10.3.5	
              The
                arbitrators shall render their award no later than 6 months following
                the
                commencement of the arbitration and such award shall be final and
                binding
                on the Parties. The Parties hereby waive any right of review or appeal
                on
                questions of law and on any other questions or matters. Judgment
                upon any
                award rendered by the arbitrators may be entered into by any court
                of
                competent jurisdiction. If any such enforcement action is brought,
                neither
                party shall seek to invalidate or modify the decisions of the arbitrators
                or otherwise to invalidate or circumvent the procedures set forth
                in this
                Article 10 as the sole and exclusive means of setting or resolving
                such
                Dispute.

            

    

     

    
      	
            	10.3.6	
              The
                fees of the arbitrators shall be borne by the non-prevailing
                Party.

            

    

     

    
      	 	
              10.3.7

            	
              The
                Parties acknowledge and instruct the arbitrators to take into account
                in
                determining what remedies shall be granted to the party prevailing
                in the
                arbitration, that (i) the rights of the Parties described in this
                Agreement and the license granted herein are unique and money damages
                alone for breach of this Agreement may not constitute an adequate
                remedy,
                (ii) time and strict performance are of the essence in this Agreement,
                and
                (iii) any Party aggrieved by the provisions of this Agreement may
                be
                entitled to equitable relief, including specific performance, temporary
                restraining orders and injunctive relief.

            

    

     

    
      	
              10.4

            	
              Oppositions,
                reexamination and similar patent office proceedings and nullity actions
                against patents of a Party

            

    

     

    
      	
            	10.4.1	
              If
                either Party intends to file an opposition under the European Patent
                Convention and/or European Community Patent Regulation or in any
                other
                jurisdiction which provides for opposition of patent applications
                or a
                reexamination or similar patent office proceeding or a nullity action
                against a patent of the other Party, such party will give the Patent
                holder notice in writing.

            

    

     

    
      	
            	10.4.2	
              The
                patent holder will be given an opportunity to respond and present
                their
                position, including any proposed resolution. Such resolution may
                include,
                but not be limited to, a royalty-free license, a cross-license or
                a
                license with a royalty rate specific to a particular patent or product
                involved, provided, however, that this provision shall not impose
                an
                obligation on any Party to reach a resolution by means of
                licensing.

            

    

     

    
      	
            	10.4.3	
              In
                any event, if the Parties are unable to reach a solution within the
                first
                to occur of, 45 Days prior to the expiration of any period to file
                an
                opposition, or within 90 Days from the initial notice, the Parties
                shall
                be free to proceed with the opposition, reexamination or other patent
                office proceeding, or nullity action. Such proceedings shall not
                be
                submitted to ICC, ADR, or ICC
                arbitration.

            

    

     

    
      
        
        

      

      
        -
          8
          -

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      11

    ENTIRE
      AGREEMENT AND AMENDMENTS

     

    This Agreement
      contains the entire and only agreements between the parties respecting the
      subject matter hereof and supersedes and cancels all previous negotiations,
      agreements, commitments and writings in respect thereto. This Agreement
      may not be amended, supplemented, released, discharged, abandoned, changed
      or
      modified in any manner, orally, or otherwise, except by an instrument in writing
      of concurrent or subsequent date signed by duly authorized officers or
      representatives of the parties hereto.
      The
      parties acknowledge and agree that nothing contained in this Agreement is an
      admission by either party as to any specific fact, and therefore neither this
      Agreement nor any part thereof can be used by either party as an admission,
      representation, or estoppel in any action by one Party against the other.
This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original and all of which shall be deemed one and the same agreement.

     

    IN
      WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be
      executed in duplicate, as of the date first written above, by its duly
      authorized officer or representative.

     

    
      	
              LICENSEE

               

            	
              LICENSOR

               

            
	
              By:
                /s/ Michael Porter

               

            	
              By:
                /s/ Mary Rankin

            
	
              Name:
                Michael Porter

               

            	
              Name:
                Mary Rankin

               

            
	
              Title:
                President EU Energy, Inc.

               

            	
              Title:
                President GE Infrastructure Technology 

               

            
	
              Date:
                

               

            	
              Date:

               

            

    

     

    
      
        
        

      

      
        -
          9
          -

        
          

        

      

      
        
        

      

    

     

    Attachment
      1

     

    LICENSOR
      PATENTS means the patents and applications listed below, including any
      divisions, reissues, reexaminations, continuations, applications, and patents
      issuing from such applications in any jurisdiction, that are counterparts of,
      or
      claim priority from, a common application for patent therefrom (the “Patent
      Family”).

     

    
      	
              Number

            	
              Issued
                / Published

            	
              Expires
                (Non-Priority)

            	
              Title

              (GE
                Docket)

            	
              Counterparts

              Patents

            	
              Counterparts

              Applications

            
	
              5,083,039

            	
              1/21/92

            	
              2/1/11
                (2012) 

            	
              Variable
                speed wind turbine (126903)

            	
              CA2100672C

              EP569556B1
                (CH, DE, DK, ES, FR, GB, IT, NL, 

              DE69233343C0

              EP884833B1
                (DE, DK, ES, FI, FR, GB, NL, IT, SE)

              JP3435474B2

              US5225712

            	 
	
              5225712

            	
              7/6/1993

            	 	
              Variable
                speed wind turbine with reduced power fluctuation and a static VAR
                mode of
                operation

            	 	 
	
              6137187

            	
              10/24/2000

            	
              8/8/2017
                (2018)

            	
              Variable
                speed wind turbine generator

            	
              CN1120297C
                AU0737762B2

              AU0767961B2

              EP1007844B1
                (DE, DE, ES, FR, GB, IE)

              DE69824965C0

              ES2224426T3

              US6847128

              US6856039,
                

              US7095131

              US6420795

              US6600240

            	
              AR980103951

              AU
                81506/01  

              AU2004220762

              BR9811873A

              CA2300201AA

              IN2326/Del/98

              JP2001512804T2

              KR20007001343
                

              MX001375

              NO20000626A,
                

              PL0338639A1,

              TR0000904T2
                

            
	
              6420795

            	 	 	
              Variable
                speed wind turbine generator

            	 	 
	
              6600240

            	 	 	
              Variable
                speed wind turbine generator

            	 	 
	
              6847128

            	 	 	
              Variable
                speed wind turbine generator

            	 	 
	
              6856039
                

            	 	 	
              Variable
                speed wind turbine generator

            	 	 
	
              7095131

            	 	 	
              Variable
                speed wind turbine generator

            	 	 

    

    

    
      
        
        

      

      
        -
          10
          -

        
          

        

      

      
        
        

      

    

    

    Attachment
      2

     

    LICENSEE
      shall pay to LICENSOR as royalties the following fees:

    

    [*
      *]

    

    

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

     

     

    
      
        
        

      

      
        -
          11
          -

        
          

        

      

      
        
        

      

    

     

    Attachment
      3

    

    Restricted
      parties pursuant to Section 1.3

     

    Vestas
      (NEG Micon), Gamesa, Enercon, REpower, Nordex, Mitsubishi Heavy Industries
      (MHI), Clipper Windpower, Siemens (Bonus), WinWind, Ecotecnia, Prokon Nord,
      MTorres, Scanwind, Suzlon, Fuhrl’nder, Goldwind, Vensys, ABB, Acciona Windpower
      (EHN).

     

    
      
        
        

      

      
        -
          12
          -

        
          

        

      

      
        
        

      

    

     

    Attachment
      4

    

    

     

    
      
        
        

      

      
        -
          13
          -

        
          

        

      

      
        
        

      

    

     

    

     

    
      
        
        

      

      
        -
          14
          -

        
          

        

      

      
        
        

      

    

    Attachment
      5

     

    

     

    
      
        
        

      

      
        -
          15
          -

        
          

        

      

      
        
        

      

    

     

    

     

    
      
        
        

      

      
        -
          16
          -

        
          

        

      

      
        
        

      

    

     

    

     

    
      
        
        

      

      
        -
          17
          -

        
          

        

      

      
        
        

      

    

     

    

     

    
      
        
        

      

      
        -
          18
          -

        
          

        

      

      
        
        

      

    

     

    

     

    
      
        
        

      

      
        -
          19
          -

        
          

        

      

      
        
        

      

    

     

    Attachment
      6

    

     

    [*
      *]

     

    

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

       

      
        
          
          

        

        
          -
            20
            -

          
            

          

        

        
          
          

        

         

      

    

    Attachment
      7

    Version
      1

     

     

    GE
      ENTERS INTO PATENT LICENSE WITH EU ENERGY, INC.

     

    

    ATLANTA,
      GEORGIA - DATE XX, 2006 - GE Energy’s wind business has entered into patent
      licenses with EU Energy, Inc. related to GE’s variable speed technology for wind
      turbines. 

     

    Both
      companies will independently carry on with their respective businesses of
      manufacturing and selling wind energy turbines, contributing to the development
      of the wind energy sector.

     

    GE
      Energy’s wind business is actively engaged in licensing its key patents for wind
      turbine control technologies to help suppliers and customers meet the rapidly
      growing need for clean, efficient renewable wind energy. 

     

    Wind
      energy is the fastest growing energy segment, and GE’s proven and patented
      technologies continue to set the standard in the industry for reliability and
      grid compatibility. 

     

    “GE
      continues to demonstrate its technology leadership and commitment to introducing
      leading-edge technologies into the marketplace,” said Victor Abate, vice
      president of renewable energy for GE Energy.

    

    About
      GE Energy

     

    GE
      Energy
      (www.ge.com/energy)
      is one
      of the world’s leading suppliers of power generation and energy delivery
      technologies, with 2005 revenue of $16.5 billion. Based in Atlanta, Georgia,
      GE
      Energy works in all areas of the energy industry including coal, oil, natural
      gas and nuclear energy; renewable resources such as water, wind, solar and
      biogas; and other alternative fuels. Numerous GE Energy products are certified
      under ecomagination, GE’s corporate-wide initiative to aggressively bring to
      market new technologies that will help customers meet pressing environmental
      challenges.

     

    
      
        
        

      

      
        -
          21
          -

        
          

        

      

      
        
        

      

    

     

    With
      wind
      turbine design, manufacturing and assembly facilities in Germany, Spain and
      the
      United States, GE Energy is among the leading providers of wind energy products
      and support services ranging from commercial wind turbines and grid integration
      products to project development assistance and operation and maintenance. The
      company's knowledge base includes the development and/or installation of more
      than 8,500 wind turbines with a total rated output of 7,600
      megawatts.

     

    
 

    About
      EU Energy, Inc.

     

    EU
      Energy Inc., and EU Energy Ltd.,
      produce,
      sell, and license the DeWind series of wind energy turbines including the 50Hz
      D6 rated at 1.25 megawatts (MW) and the 50Hz D8 rated at 2MW, both noted for
      their reliability. In 2007, the new 2MW D8.2 is planned to be delivered to
      North
      American customers from assembly operations in Lübeck, Germany. The D8.2
      utilizes the advanced WinDrive® hydrodynamic torque converter developed by Voith
      AG with a synchronous AC generator that is able to connect directly to the
      grid
      without the use of power conversion electronics. The DeWind 8.2 will be
      available in both a 60Hz and 50Hz version. .............................................

     

    ###

     

     

    
      	For more information, contact:	 
	 	 
	
              Dennis
                Murphy

              GE
                Energy

              +1
                678 844 6948

              dennis.murphy@ge.com

            	
              Ken Darling or Howard Masto

              Masto Public Relations

              +1 518 786 6488

              
                kenneth.darling@ge.com

                howard.masto@ge.com

              

            

    

     

    
      
        
        

      

      
        -
          22
          -

        
          

        

      

      
        
        

      

    

       

    Attachment
      7

    Version
      2

    

    For
      Immediate Release

    

    COMPOSITE
      TECHNOLOGY’S EU ENERGY ENTERS INTO PATENT LICENSE WITH GE

    

    Irvine,
      CA
      - Date
      ___, 2006 - Composite Technology Corporation (CTC) (OTC Bulletin Board: CPTC)
      is
      pleased to announce that
      its
      subsidiary, EU Energy Inc., (EU Energy), has licensed certain patents from
      GE
      Energy’s wind business (GE Energy). While EU Energy’s range of wind turbines
      employ their own technology and designs, the license from GE Energy will permit
      EU Energy to continue to sell its traditional
      model DeWind D6 and D8 wind turbines incorporating the use of conventional
      power
      conversion electronics in markets where the GE patents are applicable. The
      DeWind D6 is available in 50Hz and 60Hz worldwide and the DeWind D8 available
      in
      50Hz worldwide. 

    

    Both
      companies will independently carry on with their respective businesses of
      designing, manufacturing and selling wind energy turbines, and contributing
      to
      the development of the wind energy sector. EU Energy’s DeWind D8.2 and D8.1 wind
      turbines use a unique hydrodynamic torque converter that allows a synchronous
      generator to connect directly to the grid without the use of power electronics.
      This license is not applicable to these particular models. 

    

    Victor
      Abate, vice president of renewable energy for GE Energy stated: “GE Energy’s
      wind business is actively engaged in licensing its key patents for wind turbine
      control technologies to help suppliers and customers meet the rapidly growing
      need for clean, efficient renewable wind energy.”

    

    Michael
      Porter, President of CTC and EU Energy stated: “The signing of this license with
      GE is important to fulfill terms of an Irrevocable Letter of Commitment to
      purchase 400 megawatts of DeWind D6 turbines for delivery in the US commencing
      no later than the first quarter of 2008. Developing the renewable wind energy
      sector is vital to any developed economy and we are pleased to be able to offer
      our traditional range of D6 and D8 turbines using certain of GE Energy’s power
      electronics patent portfolio.” 

    

    About
      GE Energy:

    

    GE
      Energy
      (www.ge.com/energy)
      is one
      of the world’s leading suppliers of power generation and energy delivery
      technologies, with 2005 revenue of $16.5 billion. Based in Atlanta, Georgia,
      GE
      Energy works in all areas of the energy industry including coal, oil, natural
      gas and nuclear energy; renewable resources such as water, wind, solar and
      biogas; and other alternative fuels. Numerous GE Energy products are certified
      under ecomagination, GE’s corporate-wide initiative to aggressively bring to
      market new technologies that will help customers meet pressing environmental
      challenges.

    

    With
      wind
      turbine design, manufacturing and assembly facilities in Germany, Spain and
      the
      United States, GE Energy is among the leading providers of wind energy products
      and support services ranging from commercial wind turbines and grid integration
      products to project development assistance and operation and maintenance. The
      company's knowledge base includes the development and/or installation of more
      than 8,500 wind turbines with a total rated output of 7,600
      megawatts.

    
       

      
        	For more information, contact:	 
	 	 
	
                Dennis
                  Murphy

                GE
                  Energy

                +1
                  678 844 6948

                dennis.murphy@ge.com

              	
                Ken Darling or Howard Masto

                Masto Public Relations

                +1 518 786 6488

                
                  kenneth.darling@ge.com

                  howard.masto@ge.com

                

              

      

       

      
        
          
          

        

        
          -
            23
            -

          
            

          

        

        
          
          

        

      

    

      

    About
      CTC:

    

    Composite
      Technology Corporation, based in Irvine, California, USA develops, manufactures
      and sells high performance electrical transmission and renewable energy
      generation products through its subsidiaries:

     

    
      	 	
              ·

            	
              EU
                Energy Inc., and EU Energy Ltd.,
                produce, sell, and license the DeWind series of wind energy turbines
                including the 50Hz D6 rated at 1.25 megawatts (MW) and the 50Hz D8
                rated
                at 2MW, both noted for their reliability. In 2007, the new 2MW D8.2
                is
                planned to be delivered to North American customers from assembly
                operations in Lübeck, Germany. The D8.2 utilizes the advanced WinDrive®
                hydrodynamic torque converter developed by Voith AG with a synchronous
                AC
                generator that is able to connect directly to the grid without the
                use of
                power conversion electronics. The DeWind 8.2 will be available in
                both a
                60Hz and 50Hz version. 

            

      	 	 	 

    

    
      	 	
              ·

            	
              CTC
                Cable Corporation
                produces composite rod for use in its proprietary ACCC aluminum conductor
                composite core. ACCC conductors virtually eliminate the sag in power
                lines
                caused by high current and high line temperatures. ACCC conductors
                also
                reduce electricity line losses, and have demonstrated significant
                savings
                in capital and operating expenses when substituted for other conductors.
                ACCC conductors enable grid operators to eliminate blackouts and
                brownouts, providing a ‘reserve electrical capacity’ by operating at
                higher temperatures. ACCC conductors are an innovative solution for
                reconductoring power lines, constructing new lines and crossing large
                spans. ACCC composite rod is delivered to qualified conductor
                manufacturers worldwide for local ACCC conductor production and resale
                into local markets.

            

    

     

    For
      further information visit our websites: www.compositetechcorp.com&
      www.eunrg.com

     

    For
      Investor Relations Contact: James Carswell, +1-949-428-8500

    

    This
      press release may contain forward-looking statements, as defined in the
      Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for
      forward-looking statements provided to companies by the Reform Act does not
      apply to Composite Technology Corporation (Company). However, actual events
      or
      results may differ from the Company's expectations on a negative or positive
      basis and are subject to a number of known and unknown risks and uncertainties
      including, but not limited to, competition with larger companies, development
      of
      and demand for a new technology, risks associated with a startup company, risks
      associated with international transactions, general economic conditions,
      availability of funds for capital expenditure by customers, availability of
      timely financing, cash flow, timely delivery by suppliers, successful
      integration of the EU Energy acquisition, ability to produce the turbines and
      its components, ability to maintain quality control, collection-related risks
      from international transactions, or the Company's ability to manage growth.
      Other risk factors attributable to the Company's business may affect the actual
      results achieved by the Company including those that are found in the Company's
      Annual Report filed with the SEC on Form 10-K for fiscal year ended September
      30, 2005 and subsequent Quarterly Reports on Form 10-Q and subsequent Current
      Reports filed on Form 8-K and including those pertaining to EU Energy that
      will
      be included with or prior to the filing of the Company’s next Quarterly or
      Annual Report.

    

    
      
        
        

      

      
        -
          24
          -

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