Hydrogen Supply Agreement between Shenma Industrial Co., Ltd. and Henan Province Pingdingshan Hongli Coal & Coke Co., Ltd.
Shenma Industrial Co., Ltd. and Henan Province Pingdingshan Hongli Coal & Coke Co., Ltd. have agreed that Hongli will supply Shenma with 12,000 cubic meters of hydrogen per hour at a purity above 99.95%. The price will adjust according to market conditions, and Hongli will handle delivery and shipping costs. Shenma will be responsible for measuring and inspecting the hydrogen, and payments will be settled monthly. The agreement allows for further negotiation on any issues not specifically addressed.
Exhibit 10.4
Hydrogen Supply Agreement
Party A: Shenma Industrial Co., Ltd. (“Shenma”)
Party B: Henan Province Pingdingshan Hongli Coal & Coke Co., Ltd. (“Hongli”)
As Hongli has established the project to extract 12,000 cubic meters of syngas per hour from coke (Yu Pingshiji Make [2014] 06316), which will enable Hongli to provide syngas by September 2015, and Henan Shenma Nylon Chemical Industry Co., Ltd. has a great demand of hydrogen in its production process, the two parties reached a supply agreement and the terms are as follows:
| 1. | Amount: 12,000 cubic meters per hour |
| 2. | Quality: in excess of 99.95% purity to meet the production needs of Party A |
| 3. | Price: fluctuates in line with market conditions |
| 4. | Transportation: Party B will deliver to Party A and cover the shipping cost |
| 5. | Measurement and quality inspection will be determined by Party A |
| 6. | Settlement will be done once a month |
The two parties will negotiate to solve other unwritten matters.
Entry date: 10/16/2014
