Document:

EX-4.6

Exhibit 4.6

China Hydroelectric Corporation

An exempted company under the laws of the Cayman Islands

	 	 	 
	No.                     

	 	                     Units

UNIT(S), EACH CONSISTING OF ONE AMERICAN DEPOSITARY SHARE AND ONE

WARRANT TO PURCHASE THREE ORDINARY SHARES

SEE REVERSE FOR CERTAIN DEFINITIONS

THIS CERTIFIES THAT                                                              IS THE OWNER OF
                                                        
UNIT(S). Each unit (“Unit”) consists of one American Depositary Share (“ADS”), each representing
three ordinary shares, par value $0.001 per ordinary share (“Ordinary Shares”), of China
Hydroelectric Corporation, an exempted company under the laws of the Cayman Islands (the
“Corporation”) and one warrant (“Warrants”). Each Warrant entitles the holder to purchase three
Ordinary Shares for $15.00 (subject to adjustment). The ADS and the Warrant comprising each Unit
represented by this certificate shall separate immediately upon the consummation of the sale
thereof to investors. The terms of the Warrants are governed by the Warrant Agreement, dated as of
                         , 2010, between the Corporation and The Bank of New York Mellon, as warrant agent (the
“Warrant Agent”), and are subject to the terms and provisions contained therein, to all of which
terms and conditions the holder of this certificate consents by acceptance hereof. Copies of the
Warrant Agreement are on file at the office of the Warrant Agent at 101 Barclay Street, New York,
New York 10286, USA, and are available to any Warrant holder upon written request and without
cost. This certificate is not valid unless countersigned and registered by the Registrar of the
Corporation.

WITNESS the facsimile signatures of its duly authorized officers.

	 	 	 	 	 	 	 
	Dated:                          , 2010.
	 	CHINA HYDROELECTRIC CORPORATION	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Corporate Secretary

	 	 	 	Chairman, Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

Registrar

	 	 	 	 	 	 

 

 

[REVERSE]

The following abbreviations, when used in the inscription on the face of this certificate, shall be
construed as if they were written out in full according to applicable law or regulation:

	 	 	 
	TEN COM

	 	as tenants in common
	TEN ENT

	 	as tenants by the entireties
	JT TEN

	 	as joint tenants with rights of
survivorship and not as tenants in common

	 	 	 	 	 	 	 	 	 
	Unif Gift Min Act

	 	 	 	Custodian
	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	(Cust)
	 	 	 	(Minor)	 	 

	 	 	 	 	 
	 

	 	Under Uniform Gifts to Minors Act:
	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	(State)	 	 

Additional abbreviations may also be used though not in the above list.

China Hydroelectric Corporation

     The
Corporation will furnish to each holder of Units who so requests the powers,
designations, preferences and relative, participating, option or other special rights of each class
of shares or series thereof of the Corporation and the qualifications, limitations or restrictions
of such preferences and/or rights. This certificate and the Units represented hereby are issued
and shall be held subject to the terms and conditions applicable to the securities underlying and
comprising the Units.

For Value Received,                      hereby sell, assign and transfer unto

	 	 	 
	PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

	 	 
	 
	 	 
	 
	 	 
	 

	 	 

 

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE)

Units represented by the within Certificate, and do hereby irrevocably constitute and appoint
                     Attorney, to transfer the said Units on the books of the within named Corporation with
full power of substitution in the premises.

	 	 	 	 	 
	Dated:

	 	 	 	 
	 

	 	 	 	 

	 	 	 
	By:
	 	 
	 

	 	 
	NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE
FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE
WHATEVER.

	 	 	 	 	 
	Signature(s) Guaranteed:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	THE SIGNATURE(S) SHOULD BE GUARANTEED
BY AN ELIGIBLE GUARANTOR INSTITUTION
(BANKS, STOCKBROKERS, SAVINGS AND LOAN
ASSOCIATIONS AND CREDIT UNIONS WITH
MEMBERSHIP IN AN APPROVED SIGNATURE
GUARANTEE MEDALLION PROGRAM, PURSUANT
TO S.E.C. RULE 17Ad-15.EX-10.69

Exhibit 10.69

WARRANT AGREEMENT

CHINA HYDROELECTRIC CORPORATION

And

[THE BANK OF NEW YORK MELLON], as Warrant Agent

WARRANT AGREEMENT

Dated as
of [          ], 2010

 

 

THIS WARRANT AGREEMENT (this “Agreement”), dated as of [          ], 2010, is by and
between China Hydroelectric Corporation, a Cayman Islands company (the “Company”), and The Bank of
New York Mellon, a New York banking corporation (the “Warrant Agent”).

     WHEREAS,
the Company proposes to issue up to 5,750,000 warrants to be offered in the Company’s
initial public offering of ADSs (as defined below) and Warrants (as defined below) (the “IPO”)
pursuant to a registration statement (the “Registration Statement”) filed with the Securities
Exchange Commission. Each American Depositary Share (“ADS”)
representing three ordinary shares of the Company, par value $0.001 per share (the “Ordinary
Shares”), and one warrant (the “Warrants”) to purchase three Ordinary Shares at an exercise price
of $15.00 for three Ordinary Shares (the Ordinary Shares issuable on exercise of the Warrants, the
“Warrant Shares”);

     WHEREAS, the Company desires the Warrant Agent to act on behalf of the Company, and the
Warrant Agent is willing to so act, in connection with the issuance, transfer, exchange and
exercise of Warrants and other matters as provided herein.

     NOW, THEREFORE, in consideration of the premises and the mutual agreements set forth herein,
the parties hereto, intending to be legally bound, hereby agree as follows:

     SECTION 1. Appointment of Warrant Agent. The Company hereby appoints the Warrant
Agent to act as agent for the Company for purposes of the administration of the Warrants in accordance with the instructions set forth in this
Agreement, and the Warrant Agent hereby accepts such appointment.

     SECTION 2. Warrant Certificates. The certificates including the global warrants certificates evidencing the Warrants (the
“Warrant Certificates”) to be delivered pursuant to this Agreement shall be in registered form only
and shall be substantially in the form set forth in Exhibit A attached hereto.

     SECTION 3. Execution of Warrant Certificates. Warrant Certificates shall be
signed on behalf of the Company by its Chairman of the Board or its President or Chief Executive
Officer or a Vice President and by its Secretary or an Assistant Secretary. Each such signature
upon the Warrant Certificates may be in the form of a facsimile signature of the present or any
future Chairman of the Board, President, Chief Executive Officer, Vice President, Secretary or
Assistant Secretary and may be imprinted or otherwise reproduced on the Warrant Certificates and
for that purpose the Company may adopt and use the facsimile signature of any person who shall have
been Chairman of the Board, President, Chief Executive Officer, Vice President, Secretary or
Assistant Secretary, notwithstanding the fact that at the time the Warrant Certificates shall be
countersigned and delivered or disposed of he or she shall have ceased to hold such office.

     In case any officer of the Company who shall have signed any of the Warrant Certificates shall
cease to be such officer before the Warrant Certificates so signed shall have been countersigned by
the Warrant Agent, or disposed of by the Company, such Warrant Certificates nevertheless may be
countersigned and delivered or disposed of as though such person had not ceased to be such officer
of the Company; and any Warrant Certificate may be signed on behalf of the Company by any person
who, at the actual date of the execution of such Warrant Certificate, shall be a proper officer of
the Company to sign such Warrant Certificate, although at the date of the execution of this Warrant
Agreement any such person was not such officer.

     Warrant Certificates shall be dated the date of countersignature by the Warrant Agent.

     SECTION 4. Registration and Countersignature. Warrant Certificates shall be
countersigned by the Warrant Agent and shall not be valid for any purpose unless so countersigned.
The Warrant Agent shall, upon the written instructions of the Chairman of the Board, the President
or Chief Executive Officer, a Vice President, the Treasurer or the Chief Financial Officer of the
Company, countersign, issue and deliver Warrants as provided in this Agreement.

     The Company and the Warrant Agent may deem and treat the registered holder(s) of the Warrant
Certificates as the absolute owner(s) thereof (notwithstanding any notation of ownership or other
writing thereon made by anyone), for all purposes, and neither the Company nor the Warrant Agent
shall be affected by any notice to the contrary.

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     SECTION 5. Transfers and Exchanges. The Company will
provide the Warrant Agent with Warrant certificate issuance instructions after the close of the IPO. At such time,
the Warrant Agent will keep or cause to be kept, books for registration and transfer of the Warrant Certificate(s)
including any global warrant certificate issued hereunder. Such books shall show the name(s) and address(es) of any holder of the Warrants,
the number of China Hydroelectric Warrants on the face of the Warrant and the date thereon. The Warrant Agent shall from time to time,
subject to the limitations of this Section 5, register the transfer of any outstanding Warrant
Certificates upon the records to be maintained by it for that purpose, upon surrender thereof duly
endorsed or accompanied (if so required by the Warrant Agent) by a written instrument or
instruments of transfer in form satisfactory to the Warrant Agent,
including a Medallion guarantee duly executed by the registered
holder or holders thereof or by the duly appointed legal representative thereof or by a duly
authorized attorney. Upon any such registration of transfer, a new Warrant Certificate shall be
issued to the transferee(s) and the surrendered Warrant Certificate shall be cancelled by the
Warrant Agent. Cancelled Warrant Certificates shall thereafter be disposed of by the Warrant Agent
in its customary manner.

     Each Warrant shall initially be issued together with one ADS. The ADS and the accompanying
Warrant shall be separately transferable immediately upon the consummation of the
IPO.

     Subject to the terms of this Agreement, Warrant Certificates may be exchanged at the option of
the holder(s) thereof, when surrendered to the Warrant Agent at its principal corporate trust
office, which is currently located at the address listed in Section 17 hereof, for another Warrant
Certificate or other Warrant Certificates of like tenor and representing in the aggregate a like
number of Warrants. Any holder desiring to exchange a Warrant Certificate shall deliver a written
request to the Warrant Agent, and shall surrender, duly endorsed or accompanied (if so required by
the Warrant Agent) by a written instrument or instruments of transfer in form satisfactory to the
Warrant Agent, the Warrant Certificate or Certificates to be so exchanged. Warrant Certificates
surrendered for exchange shall be cancelled by the Warrant Agent. Such cancelled Warrant
Certificates shall then be disposed of by such Warrant Agent in its customary manner.

     The Warrant Agent is hereby authorized to countersign, in accordance with the provisions of
Section 4 hereof and of this Section 5, the new Warrant Certificates required pursuant to the
provisions of this Section 5.

     Warrant Agent shall follow its regular procedures to attempt to reconcile any discrepancies between the number of Warrants that
any exercise instructions may indicate and the number that the Warrant Agent indicates such holder owns. In any instance
where Warrant Agent cannot reconcile such discrepancies by following such procedures, Warrant Agent will consult with the Company for
instructions as to the number of certificated Warrants, if any, Warrant Agent is authorized to accept for exercise.
In the absence of such instructions, Warrant Agent is authorized not to accept any such certificated Warrants for exercise and will return to
the Warrant holder (at Warrant Agent's option by either first class mail under a blanket surety bond or insurance protecting Warrant
Agent and the Company from losses or liabilities arising out of the non-receipt or non-delivery of such Warrants or by registered mail
insured separately for the value of such Warrants) to such Warrant holder's address as set forth in the Warrants surrendered in connection with an exercise.

     SECTION 6. Terms of Warrants

     (a) Exercise Price and Exercise Period

     The initial exercise price at which Warrant Shares shall be purchasable upon the exercise of
Warrants (the “Exercise Price”) shall be $15 for every three Ordinary Shares, and each Warrant
shall be initially exercisable to purchase three Ordinary Shares. For avoidance of doubt, no
Warrant shall be exercisable for less than three Ordinary Shares.

     Subject to the terms of this Agreement (including without limitation Section 6(d) below), each
Warrant holder shall have the right, which may be exercised commencing at the opening of business
on the first day of the applicable Warrant Exercise Period set forth below and until 5:00 p.m., New
York City time, on the last day of such Warrant Exercise Period, to receive from the Company the
number of fully paid and nonassessable Warrant Shares which the holder may at the time be entitled
to receive upon the proper exercise of such Warrant in accordance with Section 6(c) of this
Agreement. No adjustments as to dividends will be made upon exercise of the Warrants.

     The “Warrant Exercise Period” shall commence (subject to Section 6(d) below) immediately upon
the consummation of the IPO and shall end on the earlier of (x) the fourth anniversary of the date
of the final prospectus relating to the IPO and (y) the Business Day preceding the date on which
such Warrants are redeemed pursuant to Section 6(b) below.

     “Business Day” shall mean any day on which the New York Stock Exchange is open for trading and
which is not a Saturday, a Sunday or any other day on which banks in the City of New York, New
York, are authorized or required by law to close.

     Each Warrant not exercised or redeemed prior to 5:00 p.m., New York City time, on the last day
of the Warrant Exercise Period shall become void and all rights thereunder and all rights in
respect thereof under this Agreement shall cease as of such time.

     (b) Redemption of Warrants

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     The Company may call the Warrants for redemption, in whole and not in part, at a price of
$0.01 per Warrant, upon not less than 30 days’ prior written notice of redemption to each Warrant
holder, at any time after such Warrants have become exercisable pursuant to Section 6(a) above, if,
and only if, (A) the Closing Price has equaled or exceeded $23.00 per ADS for any 20 trading days
within a 30-trading-day period ending on the third Business Day prior to the notice of redemption
to Warrant holders and (B) at all times between the date of such notice of redemption and the
redemption date a registration statement filed pursuant to the Securities Act is in effect covering
the Warrant Shares issuable upon exercise of the Warrants and a current prospectus relating to
those Warrant Shares is available. The Company shall send to the Warrant holders and file with the Warrant
Agent a notice of such redemption. Such notice shall be mailed to the registered holders at their addresses as they appear in the warrant register.

     The “Closing Price” of the ADSs on any date of determination means: (A) the last
reported sale price for the regular trading session (without considering after hours or other
trading outside regular trading session hours) of the ADSs on the New York Stock Exchange on that
date, (B) if the ADSs are not listed for trading on the New York Stock Exchange on that date, the
last reported sale price reported in the composite transactions for the principal United States
securities exchange on which the ADSs are so listed, (C) if the ADSs are not so reported, the last
quoted bid price for the ADSs in the over-the-counter market as reported by the OTC Bulletin Board,
the National Quotation Bureau or similar organization, or (D) if the ADSs are not so quoted, the
average of the mid-point of the last bid and ask prices for the ADSs from at least three nationally
recognized investment banking firms that the Company selects for this purpose.

     (c) Exercise Procedure.

     A Warrant may be exercised upon surrender to the Company at the principal stock transfer
office of the Warrant Agent, which is currently located at the address listed in Section 17 hereof,
of the Warrant Certificate or Certificates to be exercised with the form of election to purchase on
the reverse thereof duly filled in and signed and such other documentation as the Warrant Agent may
reasonably request, and upon payment to the Warrant Agent for the account of the Company of the
Exercise Price (adjusted as herein provided if applicable) for the number of Warrant Shares in
respect of which such Warrants are then exercised. Payment of the aggregate Exercise Price shall be
made by certified check or wire transfer in lawful money of the
United States of America to the Warrant Agent. In no event will any Warrants be settled on a net cash
basis.

     Subject to the provisions of Section 7 hereof, upon such surrender of Warrants and payment of
the Exercise Price the Company shall issue and cause to be delivered with all reasonable dispatch
to and in such name or names as the Warrant holder may designate, a certificate or certificates for
the number of full Warrant Shares issuable upon the exercise of such Warrants. Such certificate or
certificates shall be deemed to have been issued and any person so designated to be named therein
shall be deemed to have become a holder of record of such Warrant Shares as of the date of the
surrender of such Warrants and payment of the Exercise Price.

     The Warrants shall be exercisable, at the election of the holders thereof, either in full or
from time to time in part and, in the event that a certificate evidencing Warrants is exercised in
respect of fewer than all of the Warrant Shares issuable on such exercise at any time prior to the
date of expiration of the Warrants, a new certificate evidencing the remaining Warrant or Warrants
will be issued, and the Warrant Agent is hereby irrevocably authorized to countersign and to
deliver the required new Warrant Certificate or Certificates pursuant to the provisions of Section
4 hereof and of this Section 6, and the Company, whenever required by the Warrant Agent, shall
supply the Warrant Agent with Warrant Certificates duly executed on behalf of the Company for such
purpose. The Warrant Agent may assume that any Warrant presented for exercise is permitted to be so
exercised under applicable law and shall have no liability for acting in reliance on such
assumption.

     All Warrant Certificates surrendered upon exercise of Warrants shall be canceled by the
Warrant Agent. Such canceled Warrant Certificates shall then be disposed of by the Warrant Agent in
its customary manner. The Warrant Agent shall account promptly to the Company with respect to
Warrants exercised and concurrently pay to the Company all cleared monies received by the Warrant
Agent for the purchase of the Warrant Shares through the exercise of such Warrants.

     The Warrant Agent shall keep copies of this Agreement and any notices given or received
hereunder available for inspection by the holders with reasonable prior written notice during
normal business hours at its office. The Company shall supply the Warrant Agent from time to time
with such numbers of copies of this Agreement as the Warrant Agent may request.

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     (d) Registration Requirement. Notwithstanding anything else in this Section 6, no
Warrant may be exercised unless at the time of exercise (A) a registration statement covering the
Warrant Shares to be issued upon exercise of the Warrants is effective under the Securities Act and
(B) a prospectus thereunder relating to the Warrant Shares is current. The Company shall use its
best efforts to have a registration statement in effect covering Warrant Shares issuable upon
exercise of the Warrants from the date the Warrants become exercisable and to maintain a current
prospectus relating to those Warrant Shares until the Warrants expire or are redeemed. In no event
shall the Company be required to issue unregistered shares upon the exercise of any Warrant or
settle Warrants on a net cash basis.

     SECTION 7. Payment of Taxes. The Company will pay all documentary stamp taxes
attributable to the initial issuance of Warrant Shares upon the exercise of Warrants; provided,
however, that the Company shall not be required to pay any tax or taxes which may be payable in
respect of any transfer involved in the issue of any Warrant Certificates or any certificates for
Warrant Shares in a name other than that of the registered holder of a Warrant Certificate
surrendered upon the exercise of a Warrant, and the Company shall not be required to issue or
deliver such Warrant Certificates unless or until the person or persons requesting the issuance
thereof shall have paid to the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid.

     SECTION 8. Mutilated or Missing Warrant Certificates. In case any of the Warrant
Certificates shall be mutilated, lost, stolen or destroyed, the Company shall issue and the Warrant
Agent shall countersign, in exchange and substitution for and upon cancellation of the mutilated
Warrant Certificate, or in lieu of and substitution for the Warrant Certificate lost, stolen or
destroyed, a new Warrant Certificate of like tenor and representing an equivalent number of
Warrants, but only upon receipt of evidence satisfactory to the Company and the Warrant Agent of
such loss, theft or destruction of such Warrant Certificate and indemnity, also satisfactory to the
Company and the Warrant Agent. Applicants for such new Warrant Certificates must pay such
reasonable charges as the Company may prescribe.

     SECTION 9. Reservation of Warrant Shares. The Company will at all times reserve
and keep available, free from preemptive rights, out of the aggregate of its authorized but
unissued Ordinary Shares or its authorized and issued Ordinary Shares held in its treasury, for the
purpose of enabling it to satisfy any obligation to issue Warrant Shares upon exercise of Warrants,
the maximum number of Ordinary Shares which may then be deliverable upon the exercise of all
outstanding Warrants. The Warrant Agent shall have no duty to verify availability of such shares
set aside by the Company and the obligations of the Warrant Agent
shall be subject to the Company’s obligations set forth in this
Section 9.

     The Company or, if appointed, the registrar for the Ordinary Shares (the “Registrar”) and every subsequent Registrar
for any Ordinary Shares issuable upon the exercise of
any of the Warrants will be irrevocably authorized and directed at all times to reserve such number
of authorized shares as shall be required for such purpose. The Company will keep a copy of this
Agreement on file with the Registrar and with every subsequent Registrar for any Ordinary
Shares issuable upon the exercise of the Warrants. The Warrant Agent is hereby irrevocably
authorized to instruct from time to time from the Registrar to issue the Ordinary Share certificates
required to honor outstanding Warrants upon exercise thereof in accordance with the terms of this
Agreement. The Company will supply such Registrar with duly executed certificates for such
purposes. The Company will furnish such Registrar a copy of all notices of adjustments and
certificates related thereto, transmitted to each holder pursuant to Section 13 hereof.

     Before taking any action which would cause an adjustment pursuant to Section 11 hereof to
reduce the Exercise Price below the then par value (if any) of the Warrant Shares, the Company will
take any commercially reasonable corporate action which may, in the opinion of its counsel (which
may be counsel employed by the Company), be necessary in order that the Company may validly and
legally issue fully paid and nonassessable Warrant Shares at the Exercise Price as so adjusted.

     The Company covenants that all Ordinary Shares which may be issued upon exercise of Warrants
will, upon payment of the Exercise Price therefor and issue, be fully paid, nonassessable, free of
preemptive rights and free from all taxes, liens, charges and security interests with respect to
the issue thereof.

     SECTION 10. Obtaining Stock Exchange Listings. The Company will from time to
time take all commercially reasonable actions which may be necessary so that the Warrant Shares,
immediately upon their

5

 

issuance upon the exercise of Warrants, will be listed on the principal securities exchanges and
markets within the United States of America, if any, on which the ADSs are then listed. To the
extent that the ADSs are not listed on a national securities exchange or there is no exemption from
state “blue sky” securities laws for the issuance of the Warrant Shares, the Company will take all
commercially reasonable actions which may be necessary so that the Warrant Shares are registered in
all states in which the holders of the Warrants reside.

     SECTION 11. Adjustment of Number of Warrant Shares. The number of Warrant Shares
issuable upon the exercise of each Warrant is subject to adjustment from time to time upon the
occurrence of the events enumerated in this Section 11.

     (a) Stock Dividends — Split-Ups. If after the date hereof, and subject to the
provisions of Section 12 hereof, the number of outstanding Ordinary Shares is increased by a stock
dividend payable in Ordinary Shares, or by a split-up of Ordinary Shares, or other similar event,
then, on the effective date of such stock dividend, split-up or similar event, the number of
Ordinary Shares issuable on exercise of each Warrant shall be increased in proportion to such
increase in outstanding Ordinary Shares.

     (b) Aggregation of Shares. If after the date hereof, and subject to the
provisions of Section 12 hereof, the number of outstanding Ordinary Shares is decreased by a
consolidation, combination, reverse stock split or reclassification of Ordinary Shares or other
similar event, then, on the effective date of such consolidation, combination, reverse stock split,
reclassification or similar event, the number of Ordinary Shares issuable on exercise of each
Warrant shall be decreased in proportion to such decrease in outstanding Ordinary Shares.

     (c) Merger, Reorganization, etc. In case of any reclassification or
reorganization of the outstanding Ordinary Shares (other than a change covered by Section 11(a) or
11(b) hereof or that solely affects the par value of such Ordinary Shares), or in the case of any
merger or consolidation of the Company with or into another corporation (other than a consolidation
or merger in which the Company is the continuing corporation and that does not result in any
reclassification or reorganization of the outstanding Ordinary Shares), or in the case of any sale
or conveyance to another corporation or entity of the assets or other property of the Company as an
entirety or substantially as an entirety in connection with which the Company is dissolved, the
Warrant holders shall thereafter have the right to purchase and receive, upon the basis and upon
the terms and conditions specified in the Warrants and in lieu of the Ordinary Shares of the
Company immediately theretofore purchasable and receivable upon the exercise of the rights
represented thereby, the kind and amount of shares of stock or other securities or property
(including cash) receivable upon such reclassification, reorganization, merger or consolidation, or
upon a dissolution following any such sale or transfer, that the Warrant holder would have received
if such Warrant holder had exercised his, her or its Warrant(s) immediately prior to such event;
and if any reclassification also results in a change in Ordinary Shares covered by Section 11(a) or
11(b) hereof, then such adjustment shall be made pursuant to Sections 11(a), 11(b), and 11(d)
hereof and this Section 11(c). The provisions of this Section 11(c) shall similarly apply to
successive reclassifications, reorganizations, mergers or consolidations, sales or other transfers.

     (d) Extraordinary Dividends. If the Company distributes to all holders of its
Ordinary Shares any of its assets (including cash) or debt securities or any rights, options or
warrants to purchase debt securities, assets or other securities of the Company (other than
Ordinary Shares), the number of Ordinary Shares issuable upon exercise of each Warrant shall be
adjusted in accordance with the formula:

	 	 	 	 	 
	N’ = N x

	 	M
	 	 
	 

	 	 	 	 
	 

	 	M - F	 	 

     where:

N’ = the adjusted number of Ordinary Shares issuable upon exercise of each
Warrant.

N = the current number of Ordinary Shares issuable upon exercise of each Warrant.

M = one third of the Closing Price per ADS on the Business Day immediately
preceding the ex-dividend date for such distribution.

F = the fair market value on the ex-dividend date for such distribution of the
assets, securities, options, rights or warrants distributable to one Ordinary Share after
taking into account, in the case of any rights,

6

 

options or warrants, the consideration required to be paid upon exercise thereof. The Board
of Directors (the “Board”) shall reasonably determine the fair market value in good faith.

     The adjustment shall be made successively whenever any such distribution is made and shall
become effective immediately after the record date for the determination of stockholders entitled
to receive such distribution.

     This subsection (d) does not apply to any dividends or distributions made in connection with,
or as part of, (i) regular quarterly or other periodic dividends; or (ii) any of the actions
contemplated by Sections 11(a), 11(b) or 11(e). If any adjustment is made pursuant to this
subsection (d) as a result of the issuance of rights, options or warrants and at the end of the
period during which any such rights, options or warrants are exercisable, not all such rights,
options or warrants shall have been exercised, the Warrant shall be immediately readjusted as if
“F” in the above formula was the fair market value on the ex-dividend date for such distribution of
the indebtedness or assets actually distributed upon exercise of such rights, options or warrants
divided by the number of Ordinary Shares outstanding on the ex-dividend date for such distribution.
Notwithstanding anything to the contrary contained in this subsection (d), if “M-F” in the above
formula is less than $1.00, the Company may elect to, or if “M-F” is a negative number, the Company
shall, in lieu of the adjustment otherwise required by this subsection (d), distribute to the
holders of the Warrants, upon exercise thereof, the evidences of indebtedness, assets, rights,
options or warrants (or the proceeds thereof) which would have been distributed to such holders had
such Warrants been exercised immediately prior to the record date for such distribution.

     (e) Adjustments To Exercise Price. Whenever the number of Ordinary Shares
purchasable upon the exercise of the Warrants is adjusted, as provided in Sections 11(a) and 11(b)
hereof, the Exercise Price shall be adjusted (to the nearest cent) by multiplying such Exercise
Price immediately prior to such adjustment by a fraction (A) the numerator of which shall be the
number of Ordinary Shares purchasable upon the exercise of the Warrants immediately prior to such
adjustment, and (B) the denominator of which shall be the number of Ordinary Shares so purchasable
immediately thereafter.

     (f) Form of Warrant. The form of Warrant need not be changed because of any
adjustment pursuant to this Section 11, and Warrants issued after such adjustment may state the
same Exercise Price and the same number of shares as is stated in the Warrants initially issued
pursuant to this Agreement. However, the Company may at any time in its sole discretion make any
change in the form of Warrant that the Company may deem appropriate and that does not affect the
substance thereof, and any Warrant thereafter issued or countersigned, whether in exchange or
substitution for an outstanding Warrant or otherwise, may be in the form as so changed.

     (g) Notices of Changes in Warrant. Upon every adjustment of the Exercise Price
or the number of shares issuable upon exercise of a Warrant, the Company shall give written notice
thereof to the Warrant Agent, which notice shall state the Exercise Price resulting from such
adjustment and the increase or decrease, if any, in the number of shares purchasable at such price
upon the exercise of a Warrant, setting forth in reasonable detail the method of calculation and
the facts upon which such calculation is based. Upon the occurrence of any event specified in
Sections 11(a), 11(b), 11(c) or 11(e), then, in any such event, the Company shall give written
notice to each Warrant holder, at the last address set forth for such holder in the warrant
register, of the record date or the effective date of the event. Failure to give such notice, or
any defect therein, shall not affect the legality or validity of such event.

     (h) Notice of Certain Transactions. In the event that the Company shall propose
to (a) offer the holders of its Ordinary Shares rights to subscribe for or to purchase any
securities convertible into Ordinary Shares or shares of capital stock of any class or any other
securities, rights or options, (b) issue any rights, options or warrants to the holders of Ordinary
Shares entitling them to subscribe for Ordinary Shares or (c) make a tender offer or exchange offer
with respect to the Ordinary Shares, the Company shall send to the Warrant holders and file with
the Warrant Agent a notice of such proposed action or offer. Such notice shall be mailed to the
registered holders at their addresses as they appear in the warrant register, and, shall specify
the record date for, or the date such offer or issuance is to take place and the date of
participation therein by the holders of Ordinary Shares, if any such date is to be. Such notice
shall be given as promptly as practicable after the Board has determined to take any such action
and (x) in the case of any action covered by clause (a) or (b) above at least 10 days prior to the
record date for determining the holders of the Ordinary Shares for purposes of such action or (y)
in the case of any other such action at least 20 days prior to the date of the taking of such
proposed action or the date of participation therein by the holders of Ordinary Shares, whichever
shall be the earlier.

7

 

     (i) Other Events. If any event occurs as to which the foregoing provisions of
this Section 11 are not strictly applicable or, if strictly applicable, would not, in the good
faith judgment of the Board, fairly and adequately protect the purchase rights of the registered
holders of the Warrants in accordance with the essential intent and principles of such provisions,
then the Board shall make such adjustments in the application of such provisions, in accordance
with such essential intent and principles, as shall be reasonably necessary, in the good faith
opinion of the Board, to protect such purchase rights as aforesaid.

     SECTION 12. Fractional Interests. Notwithstanding any provision contained in
this Agreement to the contrary, the Company shall not issue fractional shares upon exercise of
Warrants. If, by reason of any adjustment made pursuant to this Section 12, the holder of any
Warrant would be entitled, upon the exercise of such Warrant, to receive a fractional interest in a
share, the Company shall, upon such exercise, round up to the nearest whole number of the Ordinary
Shares to be issued to the Warrant holder.

     SECTION 13. Notice to Warrant Holders. Upon any adjustment of the Exercise Price
pursuant to Section 11, the Company shall promptly thereafter, and in any event within five days,
(i) cause to be filed with the Warrant Agent a certificate executed by the Chief Financial Officer
or principal financial officer of the Company setting forth the number of Warrant Shares issuable
upon exercise of each Warrant after such adjustment and setting forth in reasonable detail the
method of calculation and the facts upon which such calculations are based, and (ii) cause to be
given to each of the registered holders of the Warrant Certificates at his address appearing on the
Warrant register written notice of such adjustments by first-class mail, postage prepaid. Where
appropriate, such notice may be given in advance and included as a part of the notice required to
be mailed under the other provisions of this Section 13. The Warrant Agent shall be fully protected
in relying on any such certificate and on any adjustment therein contained and shall not be deemed
to have knowledge of such adjustment unless and until it shall have received such certificate. In
case:

     (a) the Company shall authorize the issuance to all holders of Ordinary Shares of rights,
options or warrants to subscribe for or purchase Ordinary Shares or of any other subscription
rights or warrants; or

     (b) the Company shall authorize the distribution to all holders of Ordinary Shares of
evidences of its indebtedness or assets (other than regular cash dividends or dividends payable in
Ordinary Shares or distributions referred to in subsection (b) of Section 11 hereof); or

     (c) of any consolidation or merger to which the Company is a party and for which approval of
any shareholders of the Company is required, or of the conveyance or transfer of the properties and
assets of the Company substantially as an entirety, or of any reclassification or change of
Ordinary Shares issuable upon exercise of the Warrants (other than a change in par value, or from
par value to no par value, or from no par value to par value, or as a result of a subdivision or
combination), or a tender offer or exchange offer for Ordinary Shares; or

     (d) of the voluntary or involuntary dissolution, liquidation or winding up of the Company;
or

     (e) the Company proposes to take any action not specified above which would require an
adjustment of the Exercise Price pursuant to Section 11 hereof;

     then the Company shall cause to be filed with the Warrant Agent and shall cause to be given to
each of the registered holders of the Warrant Certificates at his address appearing on the Warrant
register, at least 10 calendar days prior to the applicable record date hereinafter specified, or
as promptly as practicable under the circumstances in the case of events for which there is no
record date, by first-class mail, postage prepaid, a written notice stating (i) the date as of
which the holders of record of Ordinary Shares to be entitled to receive any such rights, options,
warrants or distribution are to be determined, or (ii) the initial expiration date set forth in any
tender offer or exchange offer for Ordinary Shares, or (iii) the date on which any such
consolidation, merger, conveyance, transfer, dissolution, liquidation or winding up is expected to
become effective or consummated, and the date as of which it is expected that holders of record of
Ordinary Shares shall be entitled to exchange such shares for securities or other property, if any,
deliverable upon such reclassification, consolidation, merger, conveyance, transfer, dissolution,
liquidation or winding up. The failure to give the notice required by this Section 13 or any defect
therein shall not affect the legality or validity of any distribution, right, option, warrant,
consolidation, merger, conveyance, transfer, dissolution, liquidation or winding up, or the vote
upon any action.

8

 

     Nothing contained in this Agreement or in any of the Warrant Certificates shall be construed
as conferring upon the holders thereof the right to vote or to consent or to receive notice as
shareholders in respect of the meetings of shareholders or the election of directors of the Company
or any other matter, or any rights whatsoever as shareholders of the Company.

     SECTION 14. Merger, Consolidation or Change of Name of Warrant Agent. Any
corporation into which the Warrant Agent may be merged or with which it may be consolidated, or any
corporation resulting from any merger or consolidation to which the Warrant Agent shall be a party,
or any corporation succeeding to all or substantially all the corporate trust or agency business of
the Warrant Agent, shall be the successor to the Warrant Agent hereunder without the execution or
filing of any paper or any further act on the part of any of the parties hereto, provided that such
corporation would be eligible for appointment as a successor warrant agent under the provisions of
Section 16 hereof. In case at the time such successor to the Warrant Agent shall succeed to the
agency created by this Agreement, and in case at that time any of the Warrant Certificates shall
have been countersigned but not delivered, any such successor to the Warrant Agent may adopt the
countersignature of the original Warrant Agent; and in case at that time any of the Warrant
Certificates shall not have been countersigned, any successor to the Warrant Agent may countersign
such Warrant Certificates either in the name of the predecessor Warrant Agent or in the name of the
successor to the Warrant Agent; and in all such cases such Warrant Certificates shall have the full
force and effect provided in the Warrant Certificates and in this Agreement.

     In case at any time the name of the Warrant Agent shall be changed and at such time any of the
Warrant Certificates shall have been countersigned but not delivered, the Warrant Agent whose name
has been changed may adopt the countersignature under its prior name, and in case at that time any
of the Warrant Certificates shall not have been countersigned, the Warrant Agent may countersign
such Warrant Certificates either in its prior name or in its changed name, and in all such cases
such Warrant Certificates shall have the full force and effect provided in the Warrant Certificates
and in this Agreement.

     SECTION 15. Warrant Agent. The Warrant Agent undertakes the duties and
obligations imposed by this Agreement (and no implied duties or obligations shall be read into this
Agreement against the Warrant Agent) upon the following terms and conditions, by all of which the
Company and the holders of Warrants, by their acceptance thereof, shall be bound:

     (a) The statements contained herein and in the Warrant Certificates shall be taken as
statements of the Company and the Warrant Agent assumes no responsibility for the correctness of
any of the same except to the extent that any such statements describe the Warrant Agent or action
taken or to be taken by it. The Warrant Agent assumes no responsibility with respect to the
distribution of the Warrant Certificates except as otherwise provided herein.

     (b) The Warrant Agent shall not be responsible for any failure of the Company to comply with
any of the covenants contained in this Agreement or in the Warrant Certificates to be complied with
by the Company.

     (c) The Warrant Agent may consult at any time with counsel of its own selection (who may be
counsel for the Company) and the Warrant Agent shall incur no liability or responsibility to the
Company or to any holder of any Warrant Certificate in respect of any action taken, suffered or
omitted by it hereunder without negligence or bad faith and in accordance with the opinion or the advice of such
counsel. The Warrant Agent may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or through agents or attorneys and the Warrant Agent shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed with
due care by it hereunder.

     (d) The Warrant Agent may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions furnished to the
Warrant Agent and conforming to the requirements of this Agreement. The Warrant Agent shall incur
no liability or responsibility to the Company or to any holder of any Warrant Certificate for any
action taken in reliance on any Warrant Certificate, certificate of shares, notice, resolution,
waiver, consent, order, certificate, or other paper, document or instrument (whether in its
original or facsimile form) believed by it to be genuine and to have been signed, sent or presented
by the proper party or parties.

9

 

     (e) The Company hereby agrees to (A) pay to the Warrant Agent such compensation for all
services rendered by the Warrant Agent in the administration and execution of this Agreement as the
Company and the Warrant Agent shall agree to in writing, (B) reimburse the Warrant Agent for all
expenses, taxes and governmental charges and other charges of any kind and nature incurred by the
Warrant Agent in the execution of this Agreement (including fees and expenses of its counsel) and
(C) indemnify the Warrant Agent (and any predecessor Warrant Agent) and hold it harmless against
any and all claims (whether asserted by the Company, a holder or any other person), damages,
losses, expenses (including taxes other than taxes based on the income of the Warrant Agent) and
liabilities (including judgments, costs and counsel fees and expenses), suffered or incurred by the
Warrant Agent for anything done or omitted by the Warrant Agent in the execution of this Agreement
except as a result of its gross negligence or willful misconduct. The provisions of this Section
15(e) shall survive the expiration of the Warrants and the termination of this Agreement.

     (f) The Warrant Agent shall be under no obligation to institute any action, suit or legal
proceeding or to take any other action likely to involve expense unless the Company or one or more
registered holders of Warrant Certificates shall furnish the Warrant Agent with security and
indemnity satisfactory to it for any costs and expenses which may be incurred, but this provision
shall not affect the power of the Warrant Agent to take such action as it may consider proper,
whether with or without any such security or indemnity. All rights of action under this Agreement
or under any of the Warrants may be enforced by the Warrant Agent without the possession of any of
the Warrant Certificates or the production thereof at any trial or other proceeding relative
thereto, and any such action, suit or proceeding instituted by the Warrant Agent shall be brought
in its name as Warrant Agent and any recovery of judgment shall be for the ratable benefit of the
registered holders of the Warrants, as their respective rights or interests may appear.

     (g) The Warrant Agent, and any stockholder, director, officer or employee of it, may buy,
sell or deal in any of the Warrants or other securities of the Company or become pecuniarily
interested in any transaction in which the Company may be interested, or contract with or lend
money to the Company or otherwise act as fully and freely as though it were not Warrant Agent under
this Agreement. Nothing herein shall preclude the Warrant Agent from acting in any other capacity
for the Company or for any other legal entity.

     (h) The Warrant Agent shall act hereunder solely as agent for the Company, and its duties
shall be determined solely by the provisions hereof. The Warrant Agent shall not be liable for
anything which it may do or refrain from doing in connection with this Agreement except for its own
gross negligence or willful misconduct. Notwithstanding anything in this Agreement to the contrary, in
no event shall the Warrant Agent be liable for any special, indirect, punitive or consequential
loss or damage of any kind whatsoever (including but not limited to lost profits), even if the
Warrant Agent has been advised of the likelihood of the loss or damage and regardless of the form
of the action.

     (i) The Warrant Agent shall not at any time be under any duty or responsibility to any
holder of any Warrant Certificate to make or cause to be made any adjustment of the Exercise Price
or number of the Warrant Shares or other securities or property deliverable as provided in this
Agreement, or to determine whether any facts exist which may require any such adjustments, or with
respect to the nature or extent of any such adjustments, when made, or with respect to the method
employed in making the same. The Warrant Agent shall not be accountable with respect to the
validity or value or the kind or amount of any Warrant Shares or of any securities or property
which may at any time be issued or delivered upon the exercise of any Warrant or with respect to
whether any such Warrant Shares or other securities will when issued be validly issued and fully
paid and nonassessable, and makes no representation with respect thereto.

     (j) Notwithstanding anything in this Agreement to the contrary, neither the Company nor the
Warrant Agent shall have any liability to any holder of a Warrant Certificate or other Person as a
result of its inability to perform any of its obligations under this Agreement by reason of any
preliminary or permanent injunction or other order, decree or ruling issued by a court of competent
jurisdiction or by a governmental, regulatory or administrative agency or commission, or any
statute, rule, regulation or executive order promulgated or enacted by any governmental authority
prohibiting or otherwise restraining performance of such obligation; provided, however that (A) the
Company must use its reasonable best efforts to have any such order, decree or ruling lifted or
otherwise overturned as soon as possible and (B) nothing in this Section 15(j) shall affect the
Company’s obligation under

10

 

Section 6(d) hereof to use its best efforts to have a registration statement in effect covering the
Warrant Shares issuable upon exercise of the Warrants and to maintain a current prospectus relating
to those Warrant Shares.

     (k) Any application by the Warrant Agent for written instructions from the Company may, at
the option of the Warrant Agent, set forth in writing any action proposed to be taken or omitted by the Warrant Agent under
this Agreement and the date on and/or after which such action shall be taken or such omission shall
be effective. The Warrant Agent shall not be liable for any action taken by, or omission of, the
Warrant Agent in accordance with a proposal included in such application on or after the date
specified in such application (which date shall not be less than three Business Days after the date
any officer of the Company actually receives such application, unless any such officer shall have
consented in writing to any earlier date) unless prior to taking any such action (or the effective
date in the case of an omission), the Warrant Agent shall have received written instructions in
response to such application specifying the action to be taken or omitted.

     (l) No provision of this Agreement shall require the Warrant Agent to expend or risk its
own funds or otherwise incur any financial liability in the performance of any of its duties
hereunder or in the exercise of its rights.

     (m) In addition to the foregoing, the Warrant Agent shall be protected and shall incur no
liability for, or in respect of, any action taken or omitted by it in connection with its
administration of this Agreement if such acts or omissions are not the result of the Warrant
Agent’s reckless disregard of its duty, gross negligence or willful misconduct and are in reliance
upon (A) the proper execution of the certification concerning beneficial ownership appended to the
form of assignment and the form of the election attached hereto unless the Warrant Agent shall have
actual knowledge that, as executed, such certification is untrue, or (B) the non-execution of such
certification including, without limitation, any refusal to honor any otherwise permissible
assignment or election by reason of such non-execution.

     SECTION 16. Change of Warrant Agent. The Warrant Agent may at any time resign as
Warrant Agent upon written notice to the Company. If the Warrant Agent shall become incapable of
acting as Warrant Agent hereunder, the Company shall appoint a successor to such Warrant Agent. If
the Company shall fail to make such appointment within a period of 30 days after it has been
notified in writing of such resignation or of such incapacity by the Warrant Agent or by the
registered holder of a Warrant Certificate, then the registered holder of any Warrant Certificate
or the Warrant Agent may apply, at the expense of the Company, to any court of competent
jurisdiction for the appointment of a successor to the Warrant Agent. Pending appointment of a
successor to such Warrant Agent, either by the Company or by such a court, the duties of the
Warrant Agent shall be carried out by the Company. The holders of a majority of the unexercised
Warrants shall be entitled at any time to remove the Warrant Agent and appoint a successor to such
Warrant Agent. If a successor to the Warrant Agent shall not have been appointed within 30 days of
such removal, the Warrant Agent may apply, at the expense of the Company, to any court of competent
jurisdiction for the appointment of a successor to the Warrant Agent. Such successor to the Warrant
Agent need not be approved by the Company or the former Warrant Agent. After appointment, the
successor to the Warrant Agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Warrant Agent without further act or deed;
but the former Warrant Agent upon payment of all fees and expenses due it and its agents and
counsel shall deliver and transfer to the successor to the Warrant Agent any property at the time
held by it hereunder and execute and deliver any further assurance, conveyance, act or deed
necessary for the purpose. Failure to give any notice provided for in this Section 16, however, or
any defect therein, shall not affect the legality or validity of the appointment of a successor to
the Warrant Agent.

     SECTION 17. Notices to Company and Warrant Agent. Any notice or demand
authorized by this Agreement to be given or made by the Warrant Agent or by the registered holder
of any Warrant Certificate to or on the Company shall be sufficiently given or made when and if
deposited in the mail, first class or registered, postage prepaid, addressed (until another address
is filed in writing by the Company with the Warrant Agent), as follows:

China Hydroelectric Corporation

420 Lexington, Suite 860

New York, NY 10170

Attention: Chief Executive Officer and President

11

 

     In case the Company shall fail to maintain such office or agency or shall fail to give such
notice of the location or of any change in the location thereof, presentations may be made and
notices and demands may be served at the principal corporate trust office of the Warrant Agent.

     Any notice pursuant to this Agreement to be given by the Company or by the registered
holder(s) of any Warrant Certificate to the Warrant Agent shall be sufficiently given when and if
deposited in the mail, first-class or registered, postage prepaid, addressed (until another address
is filed in writing by the Warrant Agent with the Company) to the Warrant Agent as follows:

The
Bank of New York Mellon

101 Barclay Street

New York, NY 10286

     SECTION 18. Supplements and Amendments. The Company and the Warrant Agent may
from time to time supplement or amend this Agreement without the approval of any holders of Warrant
Certificates in order to cure any ambiguity or to correct or supplement any provision contained
herein which may be defective or inconsistent with any other provision herein, or to make any other
provisions in regard to matters or questions arising hereunder which the Company and the Warrant
Agent may deem necessary or desirable and which shall not in any way adversely affect the interests
of the holders of Warrant Certificates theretofore issued. Upon the delivery of a certificate from
an appropriate officer of the Company which states that the proposed supplement or amendment is in
compliance with the terms of this Section 18, the Warrant Agent shall execute such supplement or
amendment. Notwithstanding anything in this Agreement to the contrary, the prior written consent of
the Warrant Agent must be obtained in connection with any supplement or amendment which alters the
rights or duties of the Warrant Agent. The Company and the Warrant Agent may amend any provision
herein with the consent of the holders of Warrants exercisable for a majority of the Warrant Shares
issuable on exercise of all outstanding Warrants that would be affected by such amendment.

     SECTION 19. Successors. All the covenants and provisions of this Agreement by or
for the benefit of the Company or the Warrant Agent shall bind and inure to the benefit of their
respective successors and assigns hereunder.

     SECTION 20. Termination. This Agreement will terminate on any earlier date if
all Warrants have been exercised or expired without exercise. The provisions of Section 15 hereof
shall survive such termination.

     SECTION 21. Governing Law. This Agreement and each Warrant Certificate issued
hereunder shall be deemed to be a contract made under the laws of the State of New York and for all
purposes shall be construed in accordance with the internal laws of the State of New York. The
parties agree that all actions and proceedings arising out of this Agreement or any of the
transactions contemplated hereby shall be brought in the United States District Court for the
Southern District of New York or in a New York State Court in the County of New York and that, in
connection with any such action or proceeding, the parties will submit to the jurisdiction of, and
venue in, such court. Each of the parties hereto also irrevocably waives all right to trial by jury
in any action, proceeding or counterclaim arising out of this Agreement or the transactions
contemplated hereby.

     SECTION 22. Benefits of This Agreement. Nothing in this Agreement shall be
construed to give to any person or corporation other than the Company, the Warrant Agent and the
registered holders of the Warrant Certificates any legal or equitable right, remedy or claim under
this Agreement, and this Agreement shall be for the sole and exclusive benefit of the Company, the
Warrant Agent and the registered holders of the Warrant Certificates.

     SECTION 23. Counterparts. This Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to be an original, and
all such counterparts shall together constitute but one and the same instrument.

     SECTION 24. Force Majeure. In no event shall the Warrant Agent be responsible or
liable for any failure or delay in the performance of its obligations under this Agreement arising
out of or caused by, directly or indirectly, forces beyond its reasonable control, including
without limitation strikes, work stoppages, accidents, acts of war or terrorism, civil or military
disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities, communications or computer (software or hardware) services.

[SIGNATURE PAGE FOLLOWS]

12

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 
	 	CHINA HYDROELECTRIC CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	as Warrant Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

13

 

EXHIBIT A

[Form of Warrant Certificate]

[FACE]

	 	 	 	 	 
	Number

	 	 
	 	Warrants
	 
	 	 	 	 
	 

	 	 	 	 

THIS WARRANT WILL BE VOID IF NOT EXERCISED PRIOR TO

5:00 P.M. NEW YORK CITY TIME,                     , 2014

CHINA HYDROELECTRIC CORPORATION

a Cayman Islands company

CUSIP:
G2112E145

Warrant Certificate

     This Warrant Certificate certifies that is the registered holder of                     
warrants (the “Warrants”) to purchase ordinary shares, par value $0.001 per share (the “Ordinary
Shares”), of China Hydroelectric Corporation, a Cayman Islands company (the “Company”). Each
Warrant entitles the holder, upon exercise during the period set forth in the Warrant Agreement
referred to below, to receive from the Company that number of fully paid and nonassessable Ordinary
Shares (each, a “Warrant Share”) as set forth below, at the exercise price (the “Exercise Price”)
as determined pursuant to the Warrant Agreement, payable as provided in the Warrant Agreement upon
surrender of this Warrant Certificate and payment of the Exercise Price at the office or agency of
the Warrant Agent referred to below, subject to the conditions set forth herein and in the Warrant
Agreement. Defined terms used in this Warrant Certificate but not defined herein shall have the
meanings given to them in the Warrant Agreement.

     Each Warrant is initially exercisable for three fully paid and non-assessable Ordinary Shares.
The number of Warrant Shares issuable upon exercise of the Warrants are subject to adjustment upon
the occurrence of certain events set forth in the Warrant Agreement.

     The initial Exercise Price for any Warrant is equal to $15.00 for every three Ordinary Shares.
The Exercise Price is subject to adjustment upon the occurrence of certain events set forth in the
Warrant Agreement.

     Warrants may be exercised only during the Warrant Exercise Period subject to the conditions
set forth in the Warrant Agreement and to the extent not exercised by the end of such Warrant
Exercise Period such Warrants shall become void.

     Reference is hereby made to the further provisions of this Warrant Certificate set forth on
the reverse hereof and such further provisions shall for all purposes have the same effect as
though fully set forth at this place.

     This Warrant Certificate shall not be valid unless countersigned by the Warrant Agent, as such
term is used in the Warrant Agreement.

     This Warrant Certificate shall be governed and construed in accordance with the internal laws
of the State of New York, without regard to conflicts of laws principles thereof.

	 	 	 	 	 
	 	CHINA HYDROELECTRIC CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	John Kuhns 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Mary Fellows 	 
	 	 	Title:  	Secretary 	 
	 

	 	 	 	 	 	 	 
	Countersigned:	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	as Warrant Agent	 	 	 	 
	 
	 	 	 	 	 	 
	By
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Authorized Signatory	 	 	 	 

14

 

[Form of Warrant Certificate]

[Reverse]

     The Warrants evidenced by this Warrant Certificate are part of a duly authorized issue of
Warrants entitling the holder on exercise to receive Ordinary Shares and are issued or to be issued
pursuant to a Warrant Agreement dated as of [          ], 2010 (the “Warrant
Agreement”), duly executed and delivered by the Company to [The Bank of New York Mellon] (the
“Warrant Agent”), which Warrant Agreement is hereby incorporated by reference in and made a part of
this instrument and is hereby referred to for a description of the rights, limitation of rights,
obligations, duties and immunities thereunder of the Warrant Agent, the Company and the holders
(the words “holders” or “holder” meaning the registered holders or registered holder) of the
Warrants. A copy of the Warrant Agreement may be obtained by the holder hereof upon written request
to the Company. Defined terms used in this Warrant Certificate but not defined herein shall have
the meanings given to them in the Warrant Agreement.

     Warrants may be exercised at any time during the Warrant Exercise Period set forth in the
Warrant Agreement. The holder of Warrants evidenced by this Warrant Certificate may exercise them
by surrendering this Warrant Certificate, with the form of Election to Purchase set forth hereon
properly completed and executed, together with payment of the Exercise Price as specified in the
Warrant Agreement at the principal corporate trust office of the Warrant Agent. In the event that
upon any exercise of Warrants evidenced hereby the number of Warrants exercised shall be less than
the total number of Warrants evidenced hereby, there shall be issued to the holder hereof or his
assignee a new Warrant Certificate evidencing the number of Warrants not exercised. No adjustment
shall be made for any dividends on any Ordinary Shares issuable upon exercise of this Warrant.

     Notwithstanding anything else in this Warrant Certificate or the Warrant Agreement, no Warrant
may be exercised unless at the time of exercise (i) a registration statement covering the Warrant
Shares to be issued upon exercise of the Warrants is effective under the Act and (ii) a prospectus
thereunder relating to the Warrant Shares is current. In no event shall the Company be required to
issue unregistered shares upon the exercise of any Warrant or settle warrants on a net cash basis.

     The Company may call the Warrants for redemption, in whole and not in part, at a price of
$0.01 per Warrant, upon not less than 30 days’ prior written notice of redemption to each Warrant
holder, at any time after such Warrants have become exercisable, if, and only if, (A) the Closing
Price has equaled or exceeded $23.00 per ADS for any 20 trading days within a 30-trading-day period
ending on the third Business Day prior to the notice of redemption to Warrant holders and (B) at
all times between the date of such notice of redemption and the redemption date a registration
statement filed pursuant to the Securities Act is in effect covering the Warrant Shares issuable
upon exercise of the Warrants and a current prospectus relating to those Warrant Shares is
available.

     The Warrant Agreement provides that upon the occurrence of certain events the number of
Warrant Shares set forth on the face hereof may, subject to certain conditions, be adjusted. If,
upon exercise of a Warrant, the holder thereof would be entitled to receive a fractional interest
in an Ordinary Share, the Company will, upon exercise, round up to the nearest whole number of
Ordinary Shares to be issued to the Warrant holder.

     Warrant Certificates, when surrendered at the principal corporate trust office of the Warrant
Agent by the registered holder thereof in person or by legal representative or attorney duly
authorized in writing, may be exchanged, in the manner and subject to the terms of
the Warrant Agreement, for another Warrant Certificate
or Warrant Certificates of like tenor evidencing in the aggregate a like number of Warrants.

     Upon due presentation for registration of transfer of this Warrant Certificate at the office
of the Warrant Agent a new Warrant Certificate or Warrant Certificates of like tenor and evidencing
in the aggregate a like number of Warrants shall be issued to the transferee(s) in exchange for
this Warrant Certificate, subject to the terms of the Warrant Agreement.

     The Company and the Warrant Agent may deem and treat the registered holder(s) thereof as the
absolute owner(s) of this Warrant Certificate (notwithstanding any notation of ownership or other
writing hereon made by anyone), for the purpose of any exercise hereof, of any distribution to the
holder(s) hereof, and for all other

15

 

purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the
contrary. Neither the Warrants nor this Warrant Certificate entitles any holder hereof to any
rights of a security holder of the Company.

Election to Purchase

(To Be Executed Upon Exercise Of Warrant)

     The undersigned hereby irrevocably elects to exercise the right, represented by this Warrant
Certificate, to receive                     
American Depositary Shares, or ADSs (each representing three Ordinary
Shares) from the depositary for the ADSs, unless the following box is
checked:

     o
     To receive
                    
Ordinary Shares, in which case such Ordinary Shares will be
delivered in book entry form by the registrar for the Ordinary
Shares.

     The
undersigned herewith
tenders payment for such ADSs or Ordinary Shares, as applicable, to the order of China Hydroelectric Corporation in the amount of
$                     in accordance with the terms hereof.

     The undersigned
requests that a certificate for such ADSs or Ordinary Shares, as
applicable, be registered in the name of                     , whose address is                     
and that such ADSs or Ordinary Shares, as applicable, be delivered to                      whose address is                     .

     If
the number of Ordinary Shares underlying the above-referenced number
of ADSs or the above-referenced number of Ordinary Shares, as
applicable, is less than
all of the Ordinary Shares purchasable hereunder, the undersigned requests that a new Warrant
Certificate representing the remaining balance of such shares be registered in the name of                     , whose address is                     ,
and that such Warrant Certificate be delivered to                     , whose address is                     .

	 	 	 	 	 	 	 
	Date:

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 	 	 	 	(Signature)
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	(Address)
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	(Tax Identification Number)

Signature Guaranteed:

 

THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE
GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS
AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH
MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE
MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15).

16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]