Translated from Original Mandarin Debts Settlement Agreement
Exhibit 10.12
Translated from Original Mandarin
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. |
|
| • |
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