| (a)   | Such      Noteholder has not transferred the Notes at any third party;      and |
|-----------------|---------------------------------------------------------------------------------|

| (b)   | This      waiver does not violate any agreement relating to the Notes in which the      Noteholder are a party. |
|-----------------|-----------------------------------------------------------------------------------------------------------------|

| 2.   | All      terms defined in either or both of the Indentures and used in this      amendment and waiver (this “waiver”) shall have the same meanings in this      waiver as in the applicable Indenture or the  Indentures. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | The      Noteholders waive compliance of the covenants contained in Section 4.15 of      each of the Indentures to the extent that it related to (a) the issuance      and sale by Sinogas General Machinery Company, Ltd. Of 24.95% of its      capital stock and (b) the transactions whereby the company exchanged a 25%      interest in Anhui Gather Energy Company for a 25% interest in Hubei Gather      Energy Company Limited, and the Noteholder consent to such      transactions. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.   | The      Noteholders consent that, from and after December 31, 2008, the      Consolidated Subsidiary Debt to Consolidate Net Tangible Asset Ratio set      forth in Section 4.26(3) of the Fixed Rate Indenture and Section 4.28(iii)      of the Convertible Debt Indenture shall be modified to read as      follows: |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | A      Consolidated Subsidiary Debt to Consolidate Net Tangible Asset Ratio, as      determined as of the last day of each Fiscal Quarter, for the four Fiscal      Quarters ending on such day, of not greater that  0.35. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | The      Noteholders agree that they shall not take any action to cause or declare      an Event of Default pursuant to Sections 4.26(3) of the Fixed Rate      Indenture and Section 4.28(iii) of the Convertible Debt Indenture as long      as the Company is in compliance with the covenants set forth in Section 4      of this waiver. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | This      Agreement shall be binding upon the Noteholders and any transferees or      assignees of the Notes, and the Noteholders shall affix a copy of this      waiver to each Note. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | The      Noteholders agree to deliver an executed copy of this waiver to the      Trustee, and will execute a supplemental indenture to reflect the      amendments to the covenants set forth in Section 6 of this      waiver. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | SINOENERGY      CORPORATION |
|--------|-----------------------------|
|   |                        |
| By:    | /s/      Bo      Huang      |
| Name:  |
| Title: |

| ABAX      LOTUS LTD.                          |   | CCIF      PETROL LIMITED                      |
|-----------------------------------------------|--------|-----------------------------------------------|
|                                          |   |                                          |
|                                          |   |                                          |
| By:  /s/  Frank      Qian |   | By:  /s/  Li      Zhenzhi |
| Name:  Frank      Qian              |   | Name:  Li      Zhenzhi              |
| Title:  Director                    |   | Title:  Director                    |

----

|                           |   |                                   |
|-------------------------------------|--------|----------------------------------------|
| ABAX      LOTUS LTD.                |   | CCIF      PETROL LIMITED          |
|                                |   |                                   |
| By:       /s/  Frank Qian |   | By:       /s/  Li    Zhenzhi |
| Name:       Frank Qian         |   | Name:       Li Zhenzhi            |
| Title:       Director          |   | Title:       Director             |