Document:

ex10-1.htm

    
      
        

      

    

    Exhibit
10.1

    September
30, 2008

    

    

    Agreement
on Cooperation

    

    

    This
Agreement on Cooperation (“AOC”) is dated September 30, 2008 and is executed by
and between Well Lead Group Limited, a company organized and existing under the
laws of the British Virgin Islands (hereinafter referred to as “Party A”), and
Pacific Asia Petroleum, Inc., a company formed and existing under the laws of
the State of Delaware, the United States of America (hereinafter referred to as
“Party B”).  Party A and Party B are jointly referred to as the
“Parties” or individually referred to as “Party”.

    

    WITNESSETH:

    

    

    WHEREAS,
Party A has a 49% interest in Northeast Oil (China) Development Company Ltd., a
company that is incorporated in Hong Kong and owns a 95% interest in the
oilfield blocks Fu710 and Meilisi723 which are located in the Fulaerjiqu
Oilfield in Qiqihar City, the Heilongjiang Province in the People’s Republic of
China (the “Oil Blocks”);

    

    WHEREAS,
Party A and Party B have met several times discussing their intent to reach a
mutually acceptable agreement whereby Party B will acquire a minimum 25%
interest in Northeast Oil (China) Development Company Ltd. (the
“Interest”);

    

    WHEREAS,
the Oil Blocks have existing production with additional wells to be drilled over
the next couple of years and according to public information, an independent
valuer has estimated the value of the Oil Blocks at approximately 1.8 billion
Hong Kong Dollar (HK$);

    

    WHEREAS,
Party A and Party B, based on their own analyses, wish to define the basic terms
for Party B to acquire from Party A the Interest and set out such basic terms in
a draft term sheet; and

    

    WHEREAS,
Party A and Party B will continue to conduct technical analysis, financial
analysis, due diligence and negotiations in regards to Party B acquiring such
Interest.

    

    NOW,
THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
Parties hereto agree as follows:

     

    

    
      	
              1.  

            	
              Party
      A and Party B have developed the attached Term Sheet which is incorporated
      herein and which sets out the basic terms of
  cooperation.

            

    

    

    
      	
              2.  

            	
              Party
      A and Party B agree to use commercially reasonable efforts to negotiate
      and enter into a mutually acceptable Sale and Purchase Agreement pursuant
      to the

            

    

    
      
         

      

      
        - 1
-

        
          

        

      

      
         

      

    

    schedule
as set out in the attached Term Sheet, subject to Party B’s satisfactory due
diligence review and analysis of the Oil Blocks, Interest and proposed
transaction.

    

    
      	
              3.  

            	
              Party
      A will hold the Oil Blocks for the exclusive acquisition of the Interest
      by Party B until a Sales and Purchase Agreement is signed, but no later
      than November 30, 2008.

            

    

    

    
      	
              4.  

            	
              In
      consideration for the exclusivity provided by Party A for such acquisition
      through to November 30, 2008, and Party A’s full good faith cooperation in
      Party B’s due diligence review and analyses of the Oil Blocks, Interest
      and proposed transaction, which Party A hereby agrees to provide, Party B
      agrees to unconditionally issue to Party A 25,000 shares of common stock
      of Pacific Asia Petroleum, Inc. which is currently traded on the Over the
      Counter market in the United States. Alternatively, Party A shall have the
      sole option (to be advised to Party B within 10 days of the date of this
      Agreement) to require Party B to pay to the bank account as stipulated by
      Party A the non-refundable sum of US$ 50,000 within 5 working days upon
      the receipt of a written notice from Party A, instead of issuing the
      25,000 shares of common stock.

            

    

    

    
      	
              5.  

            	
              If
      at any time prior to the execution of the Sales and Purchase Agreement,
      Party A (other than due to Party B’s fault) terminates the Transaction
      contemplated in this AOC , Party A will compensate Party B with a cash
      payment of US$100,000 as full and final settlement for the termination
      within 5 working days. Upon termination or expiration of this Agreement,
      Party B shall forthwith return or destroy all confidential information
      with all copies thereof obtained from or provided by Party A during the
      due diligence.

            

    

     

    
      	
              6.  

            	
              The
      Parties agree that, unless otherwise agreed in writing, each Party will
      bear its own respective costs and expenses (including, but not limited to,
      travel expenses and attorney’s fees) incurred by them in pursuing the
      transactions contemplated herein, whether or not such transactions are
      consummated.

            

    

     

    
      	
              7.  

            	
              Each
      party shall not disclose the content of this Agreement, any information
      regarding this transaction save to the extent that any announcement is
      required by law, the regulatory body or any stock exchange. Party B will
      provide to Party A an advance copy for its review of any announcement it
      proposes to make regarding this transaction, and shall incorporate any
      reasonable revisions thereto proposed by Party
  A.

            

    

    

    
      	
              8.  

            	
              This
      AOC is governed by and shall be construed in accordance with the laws of
      the Hong Kong Special Administrative Region of the People’s Republic of
      China.

            

    

     

    
      	
              9.  

            	
              No
      amendments, changes or modifications to this AOC shall be valid except if
      the same are in writing and signed by a duly legal person or an authorized
      representative of each Party
herein.

            

    

    

    
      	
              10.  

            	
              This
      Agreement may be executed in one or more counterparts, each of which will
      be considered an original instrument, but all of which will be considered
      one and

            

    

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

    the same
agreement, and will become binding when one or more counterparts have been
signed by each of the parties and delivered to each of the parties.

    

    

    

    

    IN
WITNESS WHEREOF, the duly authorized representatives of the Parties have caused
this Agreement on Cooperation to be executed on the date first written
above.

    

    

    

    

    Party
A:  Well Lead Group Limited

    

    

    

    /s/
Au Kin
Keung                                                                                               

    Name : Au
Kin Keung

    Position
: Director

    

    

    

    

    Party
B:  Pacific Asia Petroleum, Inc.

    

    

    

    /s/
Frank C.
Ingriselli                                                                                          

    Name :
Frank C. Ingriselli

    Position
: President & CEO

    

    
      
         

      

      
        - 3
-ECOFARMS INTERNATIONAL INC.  

TRANSFER FEE - $20.00 PER NEW CERTIFICATE ISSUED

A FULL STATEMENT OF THE RELATIVE RIGHTS, INTERESTS,
PREFERENCES AND RESTRICTIONS OF EACH CLASS OF STOCK WILL BE FURNISHED BY THE
CORPORATION TO ANY SHAREHOLDER UPON WRITTEN REQUEST, WITHOUT CHARGE

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The
  following abbreviations, when used in the inscription on the face of this
  certificate, shall be construed as 

  though they were written out in full according to applicable laws or
  regulations:

  
	
  TEN COM ________

  	
  denotes tenants in common

  	
  UNIF GIFT MIN ACT
  _________Custodian __________

  
	
  TEN ENT _________

  	
  denotes tenants by the
  entireties

  	
   

  	
  (Cust) 

  	
  (Minor)

  
	
  JT TEN ___________

  	
  denotes joint tenants with
  right of

  	
   

  	
  under Uniform Gifts to
  Minors

  
	
   

  	
  survivorship and not as
  tenants in

  	
   

  	
  Act
  __________________________

  
	
   

  	
  common

  	
   

  	
  (State)

  
	
  Additional
  abbreviations not listed above may also be used.

  

	
   

  
	
  For value received __________________________________
  hereby sell assign and transfer unto

  
	
   

  
	
  ______________________________________________________________________________________

  
	
   

  
	
  ______________________________________________________________________________________

  
	
  Please print or typewrite name, address (including postal
  zip code) and tax identification of assignee

  
	
   

  
	
  ______________________________________________________________________________________

  
	
   

  
	
  ______________________________________________________________________________________

  
	
   

  
	
  Shares
  of the Common Stock represented by the within Certificate and do hereby
  irrevocably constitute and appoint
  _______________________________________________________________________________

  
	
   

  
	
  ______________________________________________________________________________________

  
	
  Attorney
  to transfer the said stock on the books of the within-named Corporation with
  full power of substitution in the premises. 

  

 

	
   

  	
   

  	
   

  
	
  Dated____________,
  20_______

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  X___________________________________

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  X___________________________________

  

Signature
  Guarantee:

	
   

  
	
  THE SIGNATURE(S) SHOULD BE
  MEDALLION STAMP GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION PURSUANT TO
  SEC RULE 17AD-15.

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