Document:

Exhibit
10.4

 

Technological Services Agreement

 

Transfer Contract

 

	
  Transferor:

  	
  Tianjin New Highland Science Development
  Co., Ltd.

  	
  (“Party A”)

  
	
   

  	
   

  	
   

  
	
  Transferee:

  	
  Hebei Daofu Oil Exploration Technology
  Development Co., Ltd.

  	
  (“Party B”)

  

 

WHEREAS,

 

Party A entered into with PetroChina Huabei
Oilfield Company (“Huabei Oilfield”) a Technology Service Agreement (Contract
No.: HBYT-CY1-2008-JS-147) dated as of July 17, 2008, pursuant to which
Party A shall utilize the nano MD film and related technologies to provide oil
output enhancement technology services for 49 oilwells and 15 waterwells on
Block 120 of Huabei Oilfield,

 

NOW, THEREFORE, Party A and Party B hereby enter
into the present agreement for the transfer of the Technology Service Agreement
whereby all of Party A’s rights and obligations under said Technology Service
Agreement shall be transferred to Party B; and such transfer has obtained
consent from Huabei Oilfield.

 

Article 1     Party
A agrees to transfer, for fee, all of its rights and obligations under the
Technology Service Agreement to Party B, to the effect that Party B shall enjoy
such rights and perform such obligations as a party to such agreement.

 

Article 2     Party
B agrees to accept the rights and obligations of Party A under the Technology
Service Agreement and to comply, in common with Huabei Oilfield, with all of
the provisions of such agreement as a party thereto.

 

Article 3     All
of the provisions of the Technology Service Agreement and all agreements set
forth therein shall remain unchanged. Party B undertakes to continue to perform
the Technology Service Agreement.

 

Article 4     Transfer
Price and Payment Time

 

4.1               The
total price for the transfer by Party A of the Technology Service
Agreement  to Party B shall be RMB Twenty
Five Million Seven Hundred and Twenty Five Thousand (RMB 25.725 million). Party
B shall on a monthly basis pay to Party A a transfer price payment in the
amount of RMB 1.225 million.

 

4.2  Payment
Time. The transfer price shall be settled on a monthly basis A and shall be
paid up within 90 days.

 

4.3  Party A
and Party B shall within 30 days of the date hereof establish a jointly-managed
account. Party B warrants that the service fee paid by Huabei Oilfield to Party
B will be transferred into such joint funds management account of Party A and
Party B. Utilization of funds from such account shall be subject to approval
and sealing by both Party A and Party B; and Funds from such jointly-managed
account shall be paid to Party A on a priority basis.

 

 

Article 5     The
accounts receivable and accounts payable arising between Party A and Huabei
Oilfield by March 31, 2010 shall continue to be settled by and between
Party A and Huabei Oilfield.

 

Article 6     Party
A and Party B both covenant and warrant that the arrangement respecting the transfer
and acceptance of the rights and obligations under the Technology Service
Agreement has received from each of them effective and full approvals and
authorizations and that their respective authorized representatives have each obtained
authorizations necessary for the execution of this Contract.

 

Article 7     Upon
effectiveness of this Contract, Party B and Huabei Oilfield may at any time
consult each other on matters related to the nano MD film technology service
project so as to facilitate the concrete implementation of the Technology
Service Agreement.

 

Article 8     Party
A and Party B shall each maintain in confidence the business information of the
other party and such confidentiality obligation shall survive the full
performance of this Contract.

 

Article 9     Any
dispute arising out of this Contract shall be resolved by the parties through
consultations, failing which, by a proceeding to be brought before the people’s
court of the place of the other party.

 

Article 10 
This Contact shall become effective as from April 1, 2010 and shall
terminate as of the expiry of the term set out in the Technology Service
Agreement.

 

Article 11 
The Technology Service Agreement dated July 17, 2008 by and between
Party A and Huabei Oilfield is a schedule hereto. Any schedule hereto is an
integral part of this Contract and shall have the same force and effect as this
Contract.

 

Article 12 This Agreement shall be made in
four copies and Party A and Party B shall each hold two copies. All of the
copies are equally valid.

 

 

Party
A: Tianjin New Highland Science and
Technology Development Company, Limited

 

 

	
  /s/ Xin Guoqiang

  	
   

  
	
   

  	
   

  
	
  (Name of Authorized Signatory)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name: Xin Guoqiang

  	
   

  

 

 

Party B: Hebei Daofu Oil Exploration Technology
Development Co., Ltd.

 

 

	
  /s/ Yan Peiju

  	
   

  
	
   

  	
   

  
	
  (Name of Authorized Signatory)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name:Yan Peiju

  	
   

  
	
   

  	
   

  
	
  Date of Execution: April 1, 2010

  	
  Place of Execution: Tanggu, TianjinExhibit
10.5

 

Technical Services Contract

 

Party A:  PetroChina Liaohe Oil Field Company

 

Handling Unit:  Huanxiling Oil Recovery Plant

 

Party B:  Tianjin New Highland Science Development Co., Ltd.

 

Place of
Execution: Panjin City, Liaoning Province

 

Date of Execution:
January 1, 2007

 

Term of
Performance: January 1, 2007 to December 31, 2010

 

1

 

THIS AGREEMENT is entered into by and between:

 

Party A 
:  Huanxiling Oil Recovery Plant
of PetroChina Liaohe Oil Field Company

 

Responsible Person: Liu Weishen

 

Party B:  Tianjin
New Highland Science Development Co., Ltd. (“Party B”), a limited
liability company organized under the laws of the People’s Republic of China.

 

Legal Representative (Responsible Person): Liu
Fengkai

 

Pursuant to the Contract Law of the People’s
Republic of China and relevant laws, and based on the principles of fairness,
equality, reciprocal advantage and benefit, respective ownership of
responsibility, and common development, Party A and Party B hereby enter into
the following by mutual consultation and agreement with regard to the
technological services matters in respect of Block 2-14-16 of Huanxiling Oil
Field.

 

Article 1                                                 Conditions Precedent to Cooperation

 

1.1           Party
B shall within the term specified herein implement nano MD filming oil
displacement (“MD Filming Oil Displacement”) in respect of 120 oil or water
wells (110 oil wells; 10 water wells) on Block 2-14-16 of Huanxiling Oil Field.

 

1.2           Party
B shall apply MD Filming Oil Displacement and its related technologies and
shall develop feasible implementation plans, which shall be implemented upon
approval by Party A.

 

Article 2                                                 Modality of Operation

 

2.1           Party
B shall be responsible for the technology plans, the development of MD Filming
Oil Displacement measures and the onsite implementation.

 

2.2           Crude
oil gauging shall be effected by using the existing separator gauging method of
Party A, shall be handled by Party A under the monitoring of Party B and shall
be subject to acceptance by both parties.

 

2.3           Oil
well sampling, water content testing and production reporting shall continue to
be dealt with in accordance with the existing operating procedures of Party A,
shall be handled by Party A under the monitoring of Party B and shall be subject
to acceptance by both parties.

 

Article 3                                                 Implementation Requirements

 

3.1           The
MD Filming Oil Displacement design plan to be implemented by Party B in respect
of the blocks specified herein shall be subject to approval and consent of
Party A before its implementation.

 

2

 

3.2           During
the course of Party B’s onsite implementation, Party A shall take charge of the
safety and environmental protection matters of the blocks specified herein as
well as relevant relationship coordination work with local authorities,
provided that Party B shall abide by all rules and procedures of Party A
and strengthen its responsibilities for the safety and environmental protection
of such blocks.

 

3.3           During
the course of the implementation, Party B shall comply with specific
requirements of Party A regarding fire prevention, safety, environmental
protection, etc.

 

Article 4                                                 Cooperation Parameters

 

4.1           From
January 1, 2007 to December 31, 2010 the annual crude oil production
target for the 130 oil and water wells (110 oil wells and 10 water wells) on
Block 2-14-16 of Huanxiling Oil Field shall be 180,000 tons.

 

Article 5                                                 Working Conditions and Cooperation Matters

 

5.1           Party
A shall provide Party B with relevant geological materials of Block 2-14-16 of
Huanxiling Oil Field hereunder (including both dynamic and static materials),
and Party B shall custody such materials with care.

 

5.2           Party
B shall be responsible for organizing the onsite implementation of the MD
Filming Oil Displacement and purchasing the equipment required for MD Filming
Oil Displacement, the equipment required for the reparation and restoration for
use of certain decommissioned wells and like assets.

 

5.3           During
the term of this Agreement, if Party B desires to terminate this Agreement
earlier as a result of losses, it shall provide a one month’s notice to Party A
and shall complete relevant hand-over procedures.

 

5.4           During
the term of this Agreement, all new technological results realized by Party B y
utilizing the technical materials and working conditions of Party A shall
belong to Party B. All new technological results realized by Party A by
utilizing the work results of Party B shall belong to Party A.

 

5.5           During
the term of this Agreement, if prodocution has been ceased due to reasons not
attributable to Party B, the oil production target will be reduced accordingly.

 

Article 6                                                 Term, Place and Modality of Performance of the Agreement

 

6.1           The
term of this Contract shall begin as from January 1, 2007 and end as of December 31,
2010.

 

6.2           The
place of performance shall be Block 2-14-16 of Huanxiling Oil Field of
PetroChina Liaohe Oil Field Company.

 

Article 7                                                 Remuneration and Taxes

 

7.1           During
the implementation of the project hereunder Party B shall receive a
remuneration to be calculated at RMB 680 per ton of oil, and the final
settlement under the Agreement shall be effected on the basis of the actually
achieved crude oil production.

 

3

 

Article 8                                                 Modality and Time of Settlement

 

8.1           Remuneration
Payment : At the end of each month, upon verification of the oil production
volume by Party A and completion of the existing settlement procedures of Party
A, the remuneration shall be settled through a bank on the basis of the actual
oil production volume.

 

Article 9                                                 Breach of Contract Liabilities and Damages

 

9.1           Party
B shall assume all losses of Party A arising from the oil field development
materials and relevant data thereof provided by Party A being disclosed as a
result of Party B’s failure to maintain the confidentiality of, and carefully
custody and utilize, the same.

 

9.3           If,
in violation of the provisions hereof, Party A fails to settle the relevant
remuneration within one month and thereby affects the production of Party B,
Party A shall timely pay up such remuneration within the following month,
failing which, it shall assume breach of contract liabilities by paying in
respect of such remuneration an interest equal to that applicable to bank
deposits of an equal term.

 

Article 10                                           Change and Termination of Agreement

 

10.1         Any
change to this Agreement shall obtain mutual agreement of the parties and will
not become effective unless effected in writing.

 

10.2         This
Agreement shall be terminated if:

 

10.2.1      the
term of this Agreement expires;

 

10.2.2      the
two parties mutually agree to terminate this Agreement during the term hereof;

 

10.2.3      any
party hereto has lost the ability to perform this Agreement due to any force
majeure event set out herein.

 

Article 11                                           Force Majeure

 

11.1         Upon
occurrence of a force majeure event, the parties shall immediately decide
through friendly consultations on how to perform this Agreement. Upon cessation
or removal of the force majeure event or its effects, Party A and Party B shall
immediately resume the performance of their obligations hereunder.

 

11.4         For
the purpose of this Agreement, the term “force majeure” means statutory force
majeure events, including earthquake, typhoon, floods and other acts of God;
and extraordinary social events, such as strikes or war.

 

Article 12                                           Miscellaneous

 

12.1         Any amendment to this Agreement may
only be effected by a written agreement executed by the authorized
representatives of both parties.

 

12.2         If the parties reach any understanding
on any other technological service in respect of the same block, the parties
may separately enter into an agreement, which shall not affect the performance
of this Agreement.

 

4

 

Article 13                                           Applicable Law and Dispute Resolution

 

13.1         Any
dispute arising out of or in connection with this Agreement shall be resolved
by Party A and Party B through consultations, failing which, either Party A or
Party B may submit the dispute to Panjin City Arbitration Commission for
arbitration.

 

5

 

Party A

 

PetroChina Liaohe Oil Field Company Huanxiling Oil
Recovery Plant (Seal)

 

 

	
  /s/ Liu Weishen

  	
   

  
	
   

  	
   

  
	
  (Name of
  Person-in-Charge)

  	
   

  
	
   

  	
   

  
	
  Name: Liu Weishen

  	
   

  

 

6

 

Party B

 

Tianjin New Highland Science Development Co., Ltd.
(Seal)

 

 

	
  /s/ Liu Fengkai

  	
   

  
	
   

  	
   

  
	
  (Name of
  Legal Representative)

  	
   

  
	
   

  	
   

  
	
  Name: Liu Fengkai

  	
   

  

 

 

Date of Execution: January 1, 2007

 

7

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