Exhibit 10.18


 


Confidential Treatment has
been requested for the omitted portions of the exhibit and the omitted portions
have been separately filed with the Commission.


 


Agency Appointment Contract


 


The Principal: (hereinafter referred to as Party A)
Tianjin New Highland Science & Technology Development Co.,Ltd.


 


The Agency: (hereinafter referred to as Party B)
Dongying Luda Petrochemical Equipment Co.,Ltd.


 


Place of Signature: Dagang District, Tianjin City


 


Date of Signature: January 11, 2010


 


Party A and Party B as mentioned above sometimes
hereinafter referred to collectively as “Parties” or individually as a “Party”


 


Definitions:


 


“Contract” refers to the Agency Appointment
Contract signed on January 11, 2010;


 


“Units” are to sets of Jet-DrillTM Semi Enclosed Skid Shallow Well
Units and sets of Jet-DrillTM Semi Enclosed Skid Deep Well Units.


 


According to the “Contract Law of the
People’s Republic of China” as well as other relevant laws and regulations, on
the basis of equality  and volition, the
Parties agree to reach the following agreement on the drill purchase.


 

















 


Confidential Treatment has
been requested for the omitted portions of the exhibit and the omitted portions
have been separately filed with the Commission.


 


Article 1 Scope of Appointment


 


Party B agrees to buy six sets of Jet-DrillTM Semi Enclosed Skid Well Units on
behalf of Party A.


 


Article 2 Requirements related to Well Units
and its Ancillary Equipment


 


The basic requirements of Party A’s purchase
of the six (6) Units are:


 


A.        Unit
Model: sets of Jet-DrillTM Semi Enclosed Skid Shallow Well Units and sets
of Jet-DrillTM Semi
Enclosed Skid Deep Well Units.


 


B.        Party
B shall be responsible for the assembly, matching and testing of the purchased
Units.


 


Article 4 Price Terms


 


Each set of the Jet-DrillTM Semi Enclosed Skid Shallow Well
Units cost [xxxx]. The total contract
price for six Units is [xxxx];


 


Date of Delivery: within ten (10) days after
the initial payment is made by Party A to Party B.


 


Place of Delivery: Tianjin City


 

















 


Confidential Treatment has
been requested for the omitted portions of the exhibit and the omitted portions
have been separately filed with the Commission.


 


Cost of Delivery: All costs related to
delivery shall be borne by Party B


 


Article 4 
Payment Terms


 


Payment will be made on a progressive basis.


 


A.        Party
A shall pay Party B the initial amount of [xxxx], which is forty(40) percent of the total contract price, within
fifteen(15) days of the signing of this Contract;.


 


B.        The
second payment of [xxxx],
which accounts for forty (40) percent of the contract price, will be made by
Party A to Party  within sixty(60) days of
the signing of this Contract;.


 


C.        The
third payment of [xxxx],
which accounts for ten(10) percent of the contract price, will be made by Party
A to Party B within one hundred and eighty(180) days of the signing of this
Contract;.


 


D.  The
balance of [xxxx], which accounts for
ten(10) percent of the contract  price,
will be paid to Party B by Party A on the date that the purchased units are
tested and accepted by Party A.


 

















 


Article 5  Term of Entrustment:


 


From January 11, 2010 to December 1,2010.


 


After the expiration of the aforementioned
term, the Parties should sign a separate contract or extend the term in written
form in the case that further services are needed.


 


Article 6  Transfer of Delegation


 


Party B may not delegate its obligations
under this agreement to any third person.


 


Article 7 Inspection of Units


 


Party B shall appoint a representative to
inspect the units upon delivery. The appointed representative shall sign on the
bill of lading after inspection to confirm that all requirements are met. Party
B has the obligation to help Party A in making claims against the supplier in
the case that any defects in quality are discovered during the inspection.


 


Article 8  Party A’s Rights and Obligations


 


A.        The
right to obtain units purchased by Party B under the Contract;


 

















 


B.        The
right to be informed of the progress of the affairs entrusted to Party B;


 


C.        Party
A may not enter into private deals with clients introduced by Party B during
the term of servoce or within three (3) months after the expiration of the
term.


 


D.        Party
A shall pay to Party B the contracted price after the Party B has fulfilled its
obligations.


 


Article 9  Party B’s Rights and Obligations


 


A.        The
right to complete the agency services under this Contract and to charge the
contracted price.


 


B.        Party
B shall keep Party A informed of all details on the Units in a timely manner so
as to protect Party A’s rights, and may not damage Party A’s interests by
providing fraudulent information to Party A, withhold information on the actual
circumstances of Party B, or conspire with other parties.


 


C.        The
warranty period for the purchased units is twelve (12) months after the
acceptance date of the Units. Party B shall provide free repair and maintenance
services on the purchased Units to Party A during the aforementioned warranty
period.


 


D.        Upon
the signing of the Contract, Party B may not charge Party A for any fees not
covered in the Contract.


 

















 


Article 10  Default Liability


 


A.        Party
A shall pay Party B liquidated damages of one ten-thousandth (1/10000) of the
delayed payment in the case that Party A cannot make the payments as stipulated
in the Contract.


 


B.        Party
B shall pay Party A liquidated damages of one ten-thousandth (1/10000) the value
of the delayed delivery in the case that Party B cannot deliver the purchased
Units as stipulated in the Contract.


 


Article 11  Alteration and Termination of the Contract


 


Any Party who wishes to change the terms and
conditions of this contract during the period of enforcement shall issue a
notice in writing to the other Party. The terms and conditions may be changed
or a supplementary agreement may be signed with the consent of the other Party
within a period agreed upon by both Parties. The altered terms shall be duly
noted.


 


Any supplementary agreements or other writte
documents signed by both Parties during the execution of the Contract shall
constitute a part of this Contract with legal effect equal with this Contract.


 

















 


Article 12  Dispute Settlement


 


All disputes
arising from the execution of or in connection with the Contract shall be
settled through amicable consultation between both Parties or intercession by a
third party. In the case that no settlement can be reached between the two
parties, either Party can take the case under dispute to the People’s Court that
has jurisdiction.


 


Article 13  This
Contract is in duplicate, with each Party holding one copy, which enters into
effect since being signed and affixed with seals by both Parties. Once the
Contract is signed and affixed with seals, it is legally binding upon both
Parties.


 

















 


Party A(Seal): Tianjin New Highland Science and Technology Development Co.,Ltd.


 


 


	
  /s/ Xin Guoqiang

  	
   

  
	
   

  	
   

  
	
  (Name of Authorized Representative)

  	
   

  
	
   

  	
   

  
	
  Name: Xin Guoqiang

  	
   

  



 

















 


Party B(Seal): Dongying Luda Petrochemical Equipment Co.,Ltd.


 


 


	
  /s/ Quan Xinkuan

  	
   

  
	
   

  	
   

  
	
  (Name of Authorized Representative)

  	
   

  
	
   

  	
   

  
	
  Name: Quan Xinkuan