Document:

Exhibit
10.16

 

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: Tianjin City

 

Date
of Signature: July 1, 2007

 

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 July 1, 2007; 

 

“Units”
are to one (a) set of Jet-DrillTM Semi Enclosed Skid
Shallow (two thousand meters) Well Unit, and one (a) set of Jet-DrillTM Semi Enclosed Skid
Deep (three thousand meters) Well Unit.

 

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.

 

Article 1 Scope of Appointment

 

Party B agrees to buy one
(a) set of Jet-DrillTM Semi Enclosed Skid
Shallow (two thousand meters) Well Unit and one (a) set of Jet-DrillTM Semi Enclosed Skid
Deep (three thousand meters) Well Unit 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 one (a) set of Jet-DrillTM Semi Enclosed Skid
Shallow (two thousand meters) Well Unit and one (a) set of Jet-DrillTM Semi Enclosed Skid
Deep (three thousand meters) Well Unit are:

 

A.           Unit
Model : one (a) set of Jet-DrillTM Semi Enclosed
Skid Shallow (two thousand meters) Well Unit and one (a) suit of Jet-DrillTM Semi Enclosed Skid Deep (three thousand
meters) Well Unit.

 

B.             Purchase Quantity: One set
of each

 

 

CONFIDENTIAL
TREATMENT REQUESTED

 

Article 3
Price Terms

 

A.
One (a) set of Jet-DrillTM Semi Enclosed Skid Shallow (two
thousand meters) Well Unit: [xxxx];

 

B.
One (a) set of Jet-DrillTM Semi Enclosed Skid Deep (three
thousand meters) Well Unit: [xxxx];

 

C.
Total Price: [xxxx]

 

Date
of Delivery: before August 10th, 2007

 

Place
of Delivery: Tianjin City

 

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

 

Article 4
Term of Entrustment:

 

From
July 1st, 2007 to
August 20th, 2007

 

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 5
Transfer of Delegation

 

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

 

 

CONFIDENTIAL
TREATMENT REQUESTED

 

Article 6
Payment Terms

 

Payment
will be made on a progressive basis.

 

A.           Party A shall pay Party B
the initial amount of [xxxx] within three(3 )days after this Agreement enters
into effect by the signatures of both Parties.

 

B.             The amount of [xxxx] will be
paid by Party A to Party B as a second payment within fifteen (15) days after
this Agreement enters into effect by the signatures of both Parties.

 

C.             The third payment of [xxxx]
will be made by Party A to Party B on August 10th, 2007, the date of which the purchased units will
have arrived.

 

D.            After the verification and
acceptance of the purchased units, the balance of [xxxx] will be paid to Party
B by Party A.

 

Article 7
Inspection of the 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 assist
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 progression of the affairs entrusted to Party B;

 

C.             Party A may not enter into
private agreements with clients introduced by Party B during the term of
service 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 completes 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.             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 B shall compensate
Party A for any actual losses caused by Party B due to non-performance of the
Contract or other illegal activities within the term of entrustment mentioned
in Article 3.

 

B.             Party A shall pay Party B
RMB a penalty amounting to one hundred thousand (¥100,000.00) if Party A cannot make payments in accordance to the
specifications set out in Article 6 within ten (10) days after the signing
of the Contract. Party B will have ownership of the purchased Units, and Party
B will have sole discretion over the handling of the Units in the case that
Party A cannot make full payment for the Units on their arrival date as
stipulated in the Contract.

 

Article 11
Alteration and Termination of the Contract

 

Any
Party who wishes to alter the terms and conditions of this contract during the
period of its 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 written documents signed by both Parties
during the execution of the Contract shall constitute a part of this Contract
and have the same legal force as 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 through
intercession by a third party. In the case that no settlement can be reached
between the two parties, the case under dispute shall be settled by one of the
following (only one method may be chosen):

 

A.           Submitting the dispute to
the Tianjin Arbitration Commission

 

B.             Taking legal action under
applicable laws

 

Article 13
This Contract is in duplicate, with each Party holding one copy, which enters
into effect upon being signed/affixed with the seals of both Parties.

 

 

Article 14
Once the Contract is signed and affixed with seals, it is legally binding upon
both Parties. In the event that any situation or conditions arise due to
unforeseen circumstances not specified in the Contract, the Parties may make
amendments and supplements to the Contract upon agreement by both Parties. The
aforementioned amendments and supplements shall have legal force equal to those
of the Contract.

 

 

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

 

	
  /s/ Liu Fengkai

  	
   

  
	
   

  	
   

  
	
  (Name of Legal
  Representative)

  	
   

  
	
   

  	
   

  
	
  Name: Liu Fengkai

  	
   

  

 

 

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

 

	
  /s/ Zheng Yan

  	
   

  
	
   

  	
   

  
	
  (Name of Legal
  Representative)

  	
   

  
	
   

  	
   

  
	
  Name: Zheng Yan

  	
   

  

 

 

Supplementary Agreement

 

Party
A: Tianjin New Highland Science & Technology Development Co.,Ltd.

 

Party
B: Dongying Luda Petrochemical Equipment Co.,Ltd.

 

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

 

Whereas,
the aforementioned parties who are the signatories of the Agency Appointment
Contract (hereinafter referred to as Contract) of July 1, 2007, on the
basis of mutual accordance through consultation, reach this supplementary
agreement on the matching of equipment as well as repair and maintenance
services as set forth in the following:

 

Article 1  Party B shall be responsible for matching
equipment to the Extended Coiled Tubing High Pressure Jetting Rig, which is
purchased by Party B on behalf of Party A in China with fees already covered by
the total contract price in accordance with the Contract.

 

 

Article 2  Party B agrees to provide free repair and
maintenance services to the two(2) sets of units purchased by Party B for
12 months after acceptance and delivery of the units to Party A. Party A shall
be responsible for repairs, maintenance and other related expenses beyond the
aforementioned period.

 

Article 3  If Party B continues as Party A’s agent in
the purchase of  the Extended Coiled
Tubing High Pressure Jetting Rig after the Contract is fulfilled, and Party B
continues to provide services on the matching of equipment and maintenance,
Party B shall bear the  responsibility of
unit purchases, the matching of equipment and maintenance. Services involving
repairs on the purchased units shall be determined otherwise in a separate
agreement by both parties.

 

Article 4   This Supplementary Agreement is in duplicate
with each Party holding one copy.

 

Article 5  Once the Supplementary Agreement is signed
and affixed with seals, it will be legally binding upon both Parties, and shall
have legal force equal with those of the Contract.

 

 

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

 

Authorized
Representative:

 

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

 

Authorized
Representative:

 

Date
of Signature: July 2nd,2007Exhibit
10.17

 

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: Tianjin
City

 

Date of Signature:
June 2, 2008

 

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

 

Definition:

 

“Contract” refers to the
Agency Appointment Contract signed on June 2, 2008;

 

“Units” are to one
(a) set of Jet-DrillTM Semi Enclosed Skid Shallow (two
thousand meters) Well Unit and one (a) set of Jet-DrillTM Semi Enclosed Skid Deep (three thousand
meters) Well Unit.

 

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.

 

Article 1
Scope of Appointment

 

Party
B agrees to buy one (a) set of Jet-DrillTM Semi Enclosed
Skid Shallow (two thousand meters) Well Unit and one (a) set of Jet-DrillTM Semi Enclosed Skid Deep (three thousand
meters) Well Unit 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 one (a) set of Jet-DrillTM Semi Enclosed Skid Shallow (two thousand
meters) Well Unit and one (a) set of Jet-DrillTM Semi Enclosed
Skid Deep (three thousand meters) Well Unit are:

 

A.           Unit Model : one
(a) set of Jet-DrillTM Semi Enclosed Skid Shallow (two
thousand meters) Well Unit; one (a) set of Jet-DrillTM Semi Enclosed Skid Deep (three thousand
meters) Well Unit.

 

B.             Purchasing Quantity: one set
of each

 

 

CONFIDENTIAL
TREATMENT REQUESTED

 

Article 3
Price Terms

 

A.
One (a) set of Jet-DrillTM Semi Enclosed Skid Shallow (two
thousand meters) Well Unit: [xxxx];

 

B.
One (a) set of Jet-DrillTM Semi Enclosed Skid Deep (three
thousand meters) Well Unit: [xxxx];

 

C.
Total Price: [xxxx]

 

Date
of Delivery: before December 31, 2008

 

Place
of Delivery: Tianjin City

 

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

 

Article 4  Term of Entrustment:

 

From
June 1, 2008 to January 31, 2009

 

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 5
Transfer of Delegation

 

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

 

 

CONFIDENTIAL
TREATMENT REQUESTED

 

Article 6
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 percent of the total contract
price before September 25, 2008;

 

B.             The second payment, to the
amount of [xxxx], which accounts for thirty (30) percent of the contract price,
will be made by Party A to Party B before November 10, 2008;

 

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 on the date the purchased Units arrive;

 

D.            The balance of [xxxx] will
be paid to Party B by Party A within five(5) days after verification and
acceptance of the purchased Units.

 

 

Article 7
Inspection of the Units

 

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

 

Article 8
Party A’s Rights and Obligations

 

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

 

B.             The right to be informed of
the progression of the affairs handled by Party B;

 

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

 

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

 

Article 9
Party B’s Rights and Obligations

 

A.           The rights 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.             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 B shall compensate
Party A for any actual losses caused by Party B due to non-performance of the
Contract or other illegal activities within the term of entrustment mentioned
in Article 3.

 

B.             Party B will have ownership
over the purchase units as well as  sole
discretion over the handling of the Units in the case that Party A cannot make
full payment for the Units on their arrival date as stipulated in the Contract.

 

Article 11
Alternation and Termination of the Contract

 

Any
Party who wishes to change the terms and conditions of this contract during the
period of its 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 noted
accordingly.

 

Any
supplementary agreements or other written documents signed by both Parties
during the execution of the Contract shall constitute a part of this Contract
with equal effect as 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 through
intercession by a third party. In the case that no settlement can be reached
between the two parties, the case under dispute shall be settled by one of the
followings (only one method may be chosen):

 

A.           Submitting the dispute to
the Tianjin Arbitration Commission

 

B.             Taking legal action under
applicable laws

 

Article 13  This Contract is in duplicate, with each
Party holding one copy, which enters into effect since being signed/affixed
with the seals of both Parties.

 

 

Article 14  Once the Contract is signed and affixed with
the seals, it is legally binding upon both Parties. In the event that any
situation or conditions arise due to unforeseen circumstances not specified in
the Contract, the Parties may make amendments and supplements to the Contract
upon agreement by both Parties. The aforementioned amendments and supplements
shall have the legal force equal to those within the Contract.

 

 

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

 

	
  /s/ Xin Guoqiang

  	
   

  
	
   

  	
   

  
	
  (Name of Legal
  Representative)

  	
   

  
	
   

  	
   

  
	
  Name: Xin Guoqiang

  	
   

  

 

 

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

 

	
  /s/ Miao Zhijun

  	
   

  
	
   

  	
   

  
	
  (Name of Legal Representative)

  	
   

  
	
   

  	
   

  
	
  Name: Miao Zhijun

  	
   

  

 

 

Supplementary Agreement

 

Party
A: Tianjin New Highland Science & Technology Development Co.,Ltd.

 

Party
B: Dongying Luda Petrochemical Equipment Co.,Ltd.

 

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

 

Whereas,
the aforementioned parties who are the signatories to the Agency Appointment
Contract (hereinafter referred to as Contract) of June 2, 2008, on the
basis of mutual accordance through consultation, reach this supplementary
agreement on the matching of equipment as well as repair and maintenance
services as set forth in the following:

 

Article 1  Party B shall be responsible for of the
matching of equipment to the Extended Coiled Tubing High Pressure Jetting Rig
which is purchased by Party B on behalf of Party A in China with fees already
covered by the total contract price in accordance with the Contract.

 

 

Article 2  Party B agrees to provide free repair and
maintenance services to the two(2) sets of units purchased by Party B for
12 months after acceptance and delivery of the units to Party A. Party A shall
be responsible for repairs, maintenance and other related expenses beyond the
aforementioned period.

 

Article 3  If Party B continues as Party A’s agent in
the purchase of the Extended Coiled Tubing High Pressure Jetting Rig after the
Contract is fulfilled, and Party B continues to provide services on the
matching of equipment and maintenace, Party B shall bear the responsibility of
unit purchases, the matching of equipment and maintenance, acting in accordance
to Article 1 & 2 under this Agreement.

 

Article 4   This Supplementary Agreement is in duplicate
with each Party holding one copy.

 

Article 5  Once the Supplementary Agreement is signed
and affixed with seals, it will be legally binding upon both Parties, and have
the same legal force with the Contract.

 

 

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

 

Date
of Signature: November 18, 2009

 

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

 

Date
of Signature: November 18, 2009

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