Oil
Storage Service Agreement

      


      Party A:
456 Bureau of Shaanxi Bureau of Material Reserve

      Party B:
Xi’an Baorun Industrial Development Co., Ltd.

      


      Pursuant
to the Contract Law of the People’s Republic of China, based on the volitional,
equal and honesty principles, with regard to the escrow of oil materials,
through negotiations, Party A and Party B hereby reach agreements and executed
this contract.

       

      
        
          	
                  1.

                	
                  Name
      of Escrowed Oil Materials: refined
oil

                


        

        
          	
                  2.

                	
                  Quality
      Inspection upon Entering-into and Delivery-out of Storage and Calculation
      Method of Amount:

                


        

        
          
            	
                  	
                    (1)

                  	
                    Quality

                  


          

        

        
          
            	
                  	
                    (i)

                  	
                    The
      quality of gasoline and diesel upon entering into the storage: Party A
      shall base on the standard provided by Party B to inspect gasoline and
      diesel delivered by Party B by the current examination equipments of Party
      A. Party A shall examine the main indexes and retain samples in accordance
      with regulations. In the event the quality does not reach the standard,
      Party A is entitled to reject to receive and notify Party B. The loss
      incurred accordingly shall be assumed by Party
  B.

                  


          

        

        
          
            	
                  	
                    (ii)

                  	
                    The
      quality of gasoline and diesel upon delivery-out of the storage: when the
      escrowed gasoline and diesel of Party B are delivered out of the storage,
      the samples of them shall be taken from the storage tank and the loaded
      railway vessel car, and the quality inspections shall be
      conducted.

                  


          

        

        
          
            	
                  	
                    (2)

                  	
                    Amount

                  


          

        

        
          
            	
                  	
                    (i)

                  	
                    The
      amount of gasoline and diesel upon entering-into the storage: with regard
      to the oil products delivered by Party B, Party A shall evaluate every car
      (weights automobile tank cars and railway tank cars), and adopt the last
      amount.

                  


          

        

        
          
            	
                  	
                    (ii)

                  	
                    The
      amount of gasoline and diesel upon delivery-out of the storage: Party B
      shall hold the oil withdraw sheet, and oil-distributing personnel of Party
      A shall according to the model, amount and the dense, temperature of the
      day to conduct calculations and distribute accordingly. The automobile
      delivery-out shall use the amount that Party A weights. Both parties book
      the accounting records respectively. After the railway tank car is loaded,
      the amount shall be calculated and lead sealed by both parties. Party A
      shall not be responsible to the quality of oil products after the
      acceptance check and delivery-out of the
  storage.

                  


          

        

        
          
            	
                  	
                    (iii)

                  	
                    In
      the event the amount of delivery-out of storage is not adequate because
      the small amount of last residual oil cannot be fully released due to the
      equipment of Party A, with regard to the amount of difference, Party A
      shall pay Party B the oil payment at the price calculated based on the
      price that Party B receives
oil.

                  


          

        

        
           

           

          
            
               

            

            
               

              
                

              

            

            
               

            

          

           

           

          
            	
                    3.

                  	
                    Exhaust
      of Oil Product

                  


          

        

        Gasoline
Exhaust

        
          
            	
                  	
                    (1)

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

                  


          

        

        
          
            	
                  	
                    (2)

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

                  


          

        

         

        Diesel
Exhaust

        
          
            	
                  	
                    (1)

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

                  


          

        

        
          
            	
                  	
                    (2)

                  	
                    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.

        
          
            	
                    4.

                  	
                    Right
      and Obligation

                  


          

        

        
          
            	
                  	
                    (1)

                  	
                    Right
      and Obligation of Party A

                  


          

        

        
          
            	
                  	
                    (i)

                  	
                    Strictly
      complies with Enforcement Rule to National Reserved Oil Materials
      Management Guideline to keep the oil
products.

                  


          

        

        
          
            	
                  	
                    (ii)

                  	
                    Assists
      with Party B to handle the relevant matters of railway vessel
      cars.;

                  


          

        

        
          
            	
                  	
                    (iii)

                  	
                    Provides
      with the meal and accommodation service to personnel of Party
      B.

                  


          

        

        
          
            	
                  	
                    (2)

                  	
                    Right
      and Obligation of Party B

                  


          

        

        
          
            	
                  	
                    (i)

                  	
                    Gasoline
      and diesel organization and transportation
work.

                  


          

        

        
          
            	
                  	
                    (ii)

                  	
                    Educates
      its workers and drivers to strictly comply with policies and regulations
      of Party A, and to obey the management from personnel of Party
      A.

                  


          

        

        
          
            	
                  	
                    (iii)

                  	
                    Pays
      the escrow fees on time.

                  


          

        

        
          
            	
                  	
                    (iv)

                  	
                    Strictly
      complies with the relevant provisions set forth in this
      contract.

                  


          

        

        
          
            	
                    5.

                  	
                    Standard
      of Expense and Calculation

                  


          

        

        
          
            	
                  	
                    (1)

                  	
                    The
      escrow fee is RMB800,000
yearly.

                  


          

        

        
          
            	
                  	
                    (2)

                  	
                    Party
      B shall pay the escrow fees on time. In the event Party B does not pay off
      the escrow fee after the expiration of the contract, Party A may entrust
      the qualified business operators to sell the rest of oil products to set
      off the escrow fee.

                  


          

        

        
          
            	
                    6.

                  	
                    Breach

                  


          

        

        
          
            	
                  	
                    (1)

                  	
                    During
      the term of escrow, Party A is only responsible for the obligation of
      escrow; it has no rights to use. In the event Party A uses without consent
      of Party B, and causes failure of delivery of Party B, Party A shall
      assume all of the economic losses
incurred.

                  


          

        

        
          
            	
                  	
                    (2)

                  	
                    During
      the term of the escrow, Party A shall coordinate with Party B to withdraw
      the product. In the event Party B cannot withdraw the product attribute to
      the management of Party A, Party A shall assume relevant economic
      liabilities.

                  


          

        

        
           

           

          
            
               

            

            
               

              
                

              

            

            
               

            

          

           

          
            	
                    7.

                  	
                    Force
      Majeure

                  


          

        

        
          
            	
                  	
                    (1)

                  	
                    In
      the event the occurrence of earthquakes, floods, wars, the material
      adjustments to policies of national or local governments and other force
      majeure factors, either party is not responsible to the other
      party.

                  


          

        

        
          
            	
                  	
                    (2)

                  	
                    Either
      party or both parties that are affected by the force majeure are obliged
      to take actions to mitigate the loss caused by the force majeure to the
      lowest degree.

                  


          

        

        
          
            	
                    8.

                  	
                    Alteration
      and Cancellation

                  


          

        

        
          
            	
                  	
                    (1)

                  	
                    Through
      the negotiations of both parties, the contract may be altered and
      cancelled.

                  


          

        

        
          
            	
                  	
                    (2)

                  	
                    In
      the event Party B does not pay the escrow fee in accordance with the
      contract, Party A is entitled to reject to distribute oil. Party A may
      unilaterally cancel the
contract.

                  


          

        

        
          
            	
                  	
                    (3)

                  	
                    In
      the event the superior police changes, both parties shall cancel the
      contract in accordance with the superior regulation without
      conditions.

                  


          

        

        
          
            	
                    9.

                  	
                    In
      case any matter is not specified in this contract, both parties shall
      negotiate to resolve in accordance with the Economic Contract Law of the
      People’s Republic of China. In the event the contract shall be amended,
      the amendment shall be agreed by both
parties.

                  


          

        

        
          
            	
                    10.

                  	
                    This
      contract becomes effective after both parties execute the contract. The
      effective duration is from January 1, 2009 through December 31,
      2010.

                  


          

        

        
          	
                  12.

                	
                  This
      contract consists of two copies, each party holds on
  copy.

                


        

        
          
            	
                    13.

                  	
                    Any
      dispute occurs and negotiation fails to resolve the dispute, the dispute
      shall be solved at the registration place of Party
  B.

                  


          

        

        


        Party A:
456 Bureau of Shaanxi Bureau of Material Reserve

        Legal
Representative: (signature)

        (with
corporate seal)

        


        


        Party B:
Xi’an Baorun Industrial Development Co., Ltd.

        Legal
Representative: (signature)

        (with
corporate seal)