Exhibit 10.20
Contract Registration No.:
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Technical Development Contract
Project Name:
Development of the process of producing nano calcium carbonate
by
micro-mixing reactor
Entrusting Party (Party A): Shandong Haize Nanomaterials Co.,
Ltd
Address: Youth Development Zone, Tai'an City
R&D Party (Party B): Tsinghua University (Department of
Chemical Engineering)
Address: Haidian District, Beijing
This Contract is signed in Beijing.
This Contract is signed on January 12, 2005
Period of Validity: January 2005 - May 31, 2006
Supervised by the State Scientific and Technology Commission
<PAGE>
In accordance with the
provisions of Contract
Law of the People's
Republic of
China and after
discussions and
negotiations
about the development of the
process of producing nano calcium carbonate by micro-mixing reactor
based on the
existing technology
of producing
nanometer granule by micro-mixing reactor
developed by Party B, the two parties agree to enter into this
contract.
I. The Content, Form and Requirements of the Target Technology:
Based on the existing
production conditions
provided by Party A, Party B shall
carry out the study of the producing method of nano calcium carbonate by the
micro-mixing reactor,
find the proper
reacting condition, and carry out the
tests on small-scale
test, pilot scale
experiment and
commercial test for the
realization of industrial production.
1. The process of producing nano calcium carbonate by micro-mixing
reactor
Based on the raw materials provided by Party A, Party B shall
find out the laws
by studying how the flow rate, reaction temperature and the concentration of
white lime milk will affect the size and appearance of the obtained
nano calcium
carbonate and the flow
law inside the
micro-mixing
reactor, in order to get
prepared for
designing the equipment for pilot scale experiments. After
finishing the above
technical experiments, Party B shall submit a research
report, and
discuss with the technical personnel from Party A about the
feasibility of pilot scale experiments.
2. Determination
of the reacting
conditions
and key parameters of relevant
equipment for carbonization reactions in pilot scale
experiments
After getting
permission from Party A to carry out the pilot scale
experiments,
based on the research result of small-scale tests, Party B shall determine the
reacting conditions of the carbonization reactor and key parameters of
relevant
equipment for
carbonization
reactions, and design
the production process
for
pilot scale
experiments and relevant equipment by cooperating
with the design
organization invited by Party A.
3. Pilot scale experiments
After getting
permission
from Party A about the stipulations in the above
provision, Party B
shall provide a micro-mixing reactor for pilot scale
experiments. Party A shall provide the necessary equipment
coordinating with the
micro-mixing reactor
as well as other
conditions required
in the pilot scale
experiments, and carry out such tests under the instructions of
Party B.
<PAGE>
Pilot scale experiments are designed to study how the gas-liquid
phase ratio and
the concentration of
white lime milk will affect the size and appearance of the
obtained nano calcium
carbonate, and check
the stable operating
conditions of
equipment. If there
are problems
affecting the technical stability of the
micro-mixing reactor
during the pilot scale experiments, Party B shall be
responsible for fixing them.
Party B shall submit a report of the pilot scale experiments.
Party A shall ask
experts to conduct the
check and acceptance
of the result of the
pilot scale
experiments.
4. Commercial tests
After getting
permission from Party A to carry out the commercial tests,
based
on the research results of pilot scale experiments, Party B shall determine the
reacting conditions of the micro-mixing reactors and key parameters of
relevant
equipment for
carbonization
reactions, and design
the production process
for
commercial tests
and relevant equipment by cooperating with the design
organization invited by Party A.
Commercial tests are
designed to study how the gas-liquid phase ratio and the
concentration of white
lime milk will
affect the size and
appearance
of the
obtained nano calcium
carbonate, and check
the stable operating
conditions of
equipment. If there
are problems
affecting the technical stability of the
micro-mixing reactor
during the pilot scale
experiments, Party B
shall assist
Party B to fix them.
Party A and Party B shall jointly submit the report of commercial
tests. Party A
shall ask experts
to conduct the check and acceptance of the result of the
commercial tests.
While working at the location of Party B, the board and lodging
expenses of the
staff of Party A shall be covered by Party A. If some staff of Party
B need to
go the locale of Party A and do necessary work for the sake of the
implementation of this
project, the travel
expenses arising from this shall be
covered by Party A.
II. Required Technical Indicators and Parameters:
(I) Required
technical indicators and parameters for small-scale tests
1. The
granule diameter of the primary granule of the nano calcium
carbonate
obtained
by this technical
method shall be less than 60 nanometers. The
granules
whose diameters are more than 60
nanometers shall
account less
than 5% of
the total mass.
<PAGE>
2. When
the process reaches the stage of carbonization, the pH value of the
white lime
shall not be higher than 8.5 within 4 hours.
(II) Required
technical indicators and parameters for pilot scale experiments
1. All the
above required technical indicators and parameter for
small-scale
tests
shall have been satisfied.
2. The
composition of the kiln gas for carbonization should be: CO2 (28%),
O2
(4%) and
CO (2%). The other
ingredients
are mainly N2,
small amount of
water
vapor and soot. The
utilization
ratio of CO2 during
the reacting
process
should be >/= 80%.
3. The
carbonization
temperature
will be acceptable within the range of
30iA10iae
for the convenience of control and operation.
4. This
process shall guarantee the whiteness after carbonation will be 1.5
-
2.0
degrees higher than that before carbonation.
5. The
concentration
of white lime milk for carbonization shall be >/+=
60g/l.
(III) Required technical indicators and parameters for commercial
tests
1. All the
above required
technical indicators and parameter for tests on
small-scale tests and pilot scale experiments shall have been
satisfied.
2. The
producing method in this process can be used in industrial
production,
with the
annual output for single equipment being more than 3,000 tons.
III. Plans for
Research and Development
1. The
small-scale tests
shall be carried out and completed within 3 months
after this
contract has become effective.
2. The
pilot scale
experiments shall be
carried out and completed within 3
months
after receiving the first fund for pilot scale experiments.
3. The
enlarged commercial
test shall be carried out and completed within 3
months
after receiving the first fund for commercial tests. The producing
conditions
shall be technically satisfied.
As the above R&D plans will be carried out at the location of Party A and that
of Party B respectively and the two parties will take joint
responsibilities, so
the parties shall
closely cooperate with each other in the
execution of the
plans. In case that
the pilot plant or
commercial
plant cannot be prepared
timely, the research
plans shall be postponed. The changes of the R&D
schedule
shall be determined after the negotiations of the two parties.
<PAGE>
IV. R&D
Expenses, Remuneration and Mode of Payment or Settlement
(I) R&D expenses refer to the costs needed for the R&D.
Remuneration
refers to
the royalty of the
achievement developed
by this project and the allowance and
subsidies for the R&D staff.
R&D expenses and remuneration for this project total at RMB
1,500,000.00 yuan,
that is, RMB one million and five hundred thousand yuan
exactly.
Among which:
1. Party A
shall pay RMB two hundred and fifty thousand yuan to Party B for
the
research work of small-scale tests (item 1 of Article 1).
2. After
small-scale tests have
been finished and accepted by Party A, Party
A shall
pay RMB six
hundred thousand yuan to Party B for pilot scale
experiments of this
project (item 2 of
Article 1). When
personnel from
Party B
work at the location of Party A for the execution of this
project,
the
relevant boarding and
lodging expenses
shall be covered by
Party A,
but the
expenses shall be subject to Party A's examination.
3. After
pilot scale
experiments have been finished and accepted by Party A,
Party A
shall pay RMB six hundred and fifty thousand yuan to Party B for
the
enlarged commercial
tests of this project (item 4 of Article 1). When
personnel
from Party B work at
the location of Party A for the execution
of this
project, the relevant boarding and lodging expenses shall be
covered
by Party A,
but the expenses shall be subject to Party A's
examination.
(II) Mode of Payment
and time limit for expenditures and remuneration:
1. Party A
shall pay RMB two hundred thousand yuan to Party B within 7 days
after this
contract has been signed and sealed by both parties.
2. Party A
shall organize
the check and
acceptance
within ten days after
Party B
has submitted the report for technological test. Party A shall
pay
RMB
fifty thousand to Party B within seven days after the check and
acceptance
has passed. If Party A fails to organize the check and
acceptance
within one month, it shall be deemed as having been accepted.
3. Party A
shall pay RMB three hundred thousand yuan to Party B within
seven
days after
Party A has
informed Party B in formal written form of the
commencement of the pilot scale experiments.
4.
Party
