Translated from Original Mandarin Debts Settlement Agreement
Exhibit 10.12
Translated from Original Mandarin
Debts Settlement Agreement
Party A: Songyuan City Yuqiao Qianan Hong Xiang Oil and Gas development Co., Ltd
Party B: Songyuan City Yuqiao Oil and Gas development Co., Ltd
During period of both parties cooperatively developed the Qian112 oilfield from March of 2003 to March 31, 2006, Party B was previously responsible to redeem the oil sales revenue to Party A. In order to make a final settlement to the debtor-creditor relationship between both parties which additionally confirmed by the accountants and auditors, both parties agree that Party B owed total amount of RMB 5,364,308.4 to Party A. Base on the mutual understanding, both parties agree the following debts settlement:
1. | Amount of the debts | |
The total amount of the debts which Party B owes Party A is RMB 5,364,308.4 | ||
2. | Term of Settlement | |
Party B shall repay all the debts to Party A on or before May 30th, 2006. | ||
3. | Liability for the breach of agreement | |
• |
If Party B fails to repay the debts to Party A in full amount on time, Party B shall bear the 5% penalty to the total value of debts. |
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• |
If Party B violates any terms of the settlement agreement, it could be treated
as the breach of agreement, Party A shall file a lawsuit against Party B at local court at any time. |
Party A: Songyuan City Yuqiao Qianan Hong Xiang Oil and Gas development Co. Ltd
[SEAL]
Legal representative of Party A |
/s/ Wang Hong Jun |
Party B: Songyuan City Yuqiao Oil and Gas development Co., Ltd
[SEAL]
Legal representative of Party B |
/s/Xxxx Xxxx Wu |
Date: April 12, 2006