Supplementary Agreement
Exhibit
10.27
Party A:
Inner Mongolia Xxxxx TCH Energy Saving Development Co.,Ltd. (“Party A‘)
Party B:
Inner Mongolia Xxxxx Metallurgy Co.,Ltd. (”Party B”)
Whereas:
According to the requirements of the Tax Administration and the fact that the
the Cooperation Agreement of Wast-Heat Electricity Generaton Project
(“Cooperation Agreement) signed between the two parties became effective, the
both parties hereby agree to sign this Supplementary Agreement through friendly
negotiation in order to adapt to the changing situation.
The
Article 3 of the Cooperation Agreement signed by the two parties in April, 2009
is revised as the following:
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1.
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Party
A should be responsible for the operation after the project is completed,
and Party A provides Party B with the electricity. The settlement price of
the electricity shall be reconfirmed in accordance with the Power Purchase
Agreement.
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2.
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For
each project, from the date of completion and operation, the operation
period for Party A is 20 years. After the operation period ended, Party A
shall transfer the title of the project assets to Party B without futher
charges.
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3.
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Party
B shall try its best to coordinate production scheduling arrangement
between the power generatiion project and Party B and to ensure
the stable working hours of the power generation project not less than
7,500 hours per year.
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4.
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In
consideretion of the difference in the tax base to be levied between sales
tax and value-added tax, both parties agree to adjust the electricity
price from previously agreed 0.28 Yuan /Kwh to 0.325 Yuan/Kwh, and the
adjustment shall be confirmed in the Power Purchase
Agreement.
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5.
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In
order to guarantee the economic returns of Party A’s investment and
reflect the change in the forms of reveunes, the equipment rental shall
turn into a fixed amount revenue to Party A as following: if the
electricity sale is more than 1.5 million yuan per 9MW station, the
revenue shall be calculated based on the actual sale of electricity; and
if the electricity sale is less than 1.5 million per 9MWstation, the
revenue shall be fixed as 1.5 million yuan per 9MW
station.
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1
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6.
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In
view of forcasting on the future electrovalence of the State Grid, both
parties agree to sign the Power Purchase Contract on yearly basis, to
determine the realtime electricity selling price, however, the adjsutment
of the electricity selling price shall not effect the fulfillment of the
above-mentioned item 5.
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This
agreement is the supplemental to the Cooperaton Agreement signed by both parties
in April, 2009, and it has the same legal effect as the above-mentioned
contract. This agreement shall prevail in the event of any inconsistency between
this agreement and the above-mentioned contract.
This
Supplemental Agreement shall be made in four originals, two for each party. This
agreement shall takes effective from the date when it is signed by both Parties’
legal representatives or their authorized representatives and stamped with
corporate seals of both Parties.
Party A:
Xxxxx TCH Energy Saving Development Co.,Ltd.
| Legal Representative (Authorization): /s/ Legal Representative of Xxxxx TCH Energy Saving Development Co.,Ltd. |
Date: 1
Dec., 2009
Party B:
Xxxxx Metallurgy Co.,Ltd.
| Legal Representative (Authorization): /s/ Legal Representative of Xxxxx Metallurgy Co., Ltd. |
Date: 1
Dec., 2009
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