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Search Development Agreement by:
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 A shall pay RMB one
hundred and fifty
thousa






