Oil
Storage Service Agreement

    


    Party A:
Army 68103 (“Custodian”)

    Party B:
Xi’an Baorun Industrial Development Co., Ltd. (“Depositor”)

    


    Pursuant
to the Economic Contract Law of the People’s Republic of China, and relevant
laws and regulations, with regard to the storage of refined oil, Party A and
Party B hereby reach agreements as below:

    


    
      	
              1.

            	
              Qualification
      of Custodian

            
	 	Party
      A owns the oil storage facility that reaches the national standard. The
      managing personnel at the oil storage are experienced and skilled, and the
      management of oil storage is in compliance with the ordinary
    rules.


    

     

    
      	
              2.

            	
              Qualification
      of Depositor

            
	 	Party
      B shall render the qualification certificates and hold the permission
      certificate of oil materials business operation to execute this agreement.
      The basic turnover amount of Party B is 15,000 tons per
  month.


    

     

    
      	
              3.

            	
              Storage
      Materials

            
	 	Refined
      oil


    

     

    
      	 	
              (1)

            	
              Acceptance
      Check of Storage Materials

            
	 	After
      oil materials of Party B are delivered to the storage zone of Party A, the
      personnel of both parties shall estimate the quantities and inspect the
      qualities (based on the standard of the amounts on the truck loading sheet
      and the quality examination sheet of the oil refinery) and the
      representatives of both parties sign, then oil materials may be unloaded
      and put into the storage.


    

    
      	 	
              (2)

            	
              Transportation
      of Storage Materials

            
	 	The
      transportation for entering-into and delivery-out of the storage is by
      railways or highways.


    

     

    
      	
              4.

            	
              Term

            
	 	Five
      years, commences from November 16, 2008 through November 16, 2013. Upon
      the expiration of the contract, Party B has the preferential right to
      renew the contract. 


    

     

    
      	
              5.

            	
              Billing
      Standard of Storage Materials and Payment

            
	 	Party
      B pays the substituted storage fees RMB3,500,000 in advance to conduct the
      security improvement to the equipments and facilities of the storage zone
      of Party A. The improvement fees are deducted from the substituted storage
      fees yearly during the execution period of the contract. The yearly rent
      is RMB700,000. 


    

     

    
      	
              6.

            	
              Storage
      Method of Storage Materials

            


    

    
      	 	
              (1)

            	
              During
      the storage period that Party B storages oil materials, the keys of the
      valve of the oil tank and the gauge hatch are held by Party B. Personnel
      of Party B will unlock every time oil materials are received and
      delivered.

            


    

    
      	 	
              (2)

            	
              When
      delivering out of the storage, Party A shall conduct the delivery-out
      procedure in accordance with the valid oil withdraw sheet rendered by the
      designated person by Party B.

            


    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
    

    
      	
              7.

            	
              Oil
      Exhaust

            


    

    
      	 	
              (1)

            	
              Gasoline
      Exhaust

            


    

    
      	
               
      

            	
              (i)

            	
              The
      first month general exhaust is calculated according to
    4.0‰.

            


    

    
      	
               
      

            	
              (ii)

            	
              Starting
      from the second month, the storage exhaust is calculated according to
      1.2‰

            


    

    
      	 	
              (2)

            	
              Diesel
      Exhaust

            


    

    
      	
               
      

            	
              (i)

            	
              The
      first month general exhaust is calculated according to
    2.0‰.

            


    

    
      	
               
      

            	
              (ii)

            	
              Starting
      from the second month, the storage exhaust is calculated according to
      0.3‰

            


    

    The exhaust within the exhaust standard set for above shall be
assumed by Party B, the exceeding part shall be assumed by Party A.

    
      	
              8.

            	
              Right
      and Obligation

            


    

    
      
        	
              	
                (1)

              	
                Right
      and Obligation of Party A

              


      

    

    
      	 	
              (i)

            	
              Carefully
      keeps the storage materials in accordance with the
    contract;

            


    

    
      	
               
      

            	
              (ii)

            	
              The
      ownership of the storage materials belongs to Party B. Party A only holds
      the custodial right to the storage materials, and has no rights of sales
      and use;

            


    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
    

    
      	
               
      

            	
              (iii)

            	
              Party
      A shall actively provide personnel of Party B with the convenience. After
      receiving the railway transportation plan, Party A shall immediately
      assist with Party B to complete the oil materials receiving and delivery
      plan;

            


    

    
      	
               
      

            	
              (iv)

            	
              Party
      A shall actively coordinate with Party B, arrange reasonable work hour,
      and fulfill needs of receiving and delivery of oil materials of Party B at
      any time;

            


    

    
      	
               
      

            	
              (v)

            	
              During
      the period of storage, the custodian shall assume the compensation
      liabilities to the destroy and loss of the storage materials attribute to
      the bad management of Party A (except for the force
    majeure);

            


    

    
      	
               
      

            	
              (vi)

            	
              In
      the event the occurrence of wars, natural disasters and emergencies, Party
      A has preferential right to use the storage materials, and returns the
      equivalent of storage materials after the end of the aforesaid
      events.

            


    

    
      	 	
              (2)

            	
              Right
      and Obligation of Party B

            


    

    
      	 	
              (i)

            	
              Party
      B has the ownership of the storage
materials;

            


    

    
      	
               
      

            	
              (ii)

            	
              Party
      B shall send Party A timely notice in regard to the car plate and the
      amount so that Party A may well prepare the unload of the storage
      materials;

            


    

    
      	
               
      

            	
              (iii)

            	
              Party
      B within the storage zone shall comply with the policies and procedures of
      Party A. Party B shall assume the relevant legal liabilities to the
      harmful and death events incurred by its personnel’s violating policies
      and procedures of Party A;

            


    

    
      	
               
      

            	
              (iv)

            	
              During
      the term of storage, Party B shall keep the keys of the valve of the oil
      tank and the gauge hatch.

            


    

    
      	
              9.

            	
              Miscellaneous

            


    

    
      
        	
              	
                (1)

              	
                In
      the event Party A cannot ordinarily perform the contract due to the force
      majeure, Party B shall
understand;

              


      

    

    
      
        	
              	
                (2)

              	
                In
      case any matter is not specified in this contract and any dispute is
      arising from the performance of the contract, both parties shall negotiate
      to resolve. In the event both parties cannot reach agreements, such
      dispute shall be submitted to Xi’an Arbitration
  Commission.

              


      

    

    This
contract consists of two copies, each party holds on copy. The contract becomes
effective after both parties and their legal representatives execute the
contract.

    


    Party A:
Army 68103 (“Custodian”)

    Legal
Representative: (signature)

    


    


    Party B:
Xi’an Baorun Industrial Development Co., Ltd. (“Depositor”)

    Legal
Representative: (signature)

    


    August
26, 2008