Document:

Unassociated Document

    Exhibit
10.38

    
      [UNOFFICIAL
ENGLISH TRANSLATION SOLELY FOR REFERENCE]

    Gas
Station Lease Agreement

    (with
Xi’an Jindou Gas Station)

    

    Pursuant
to the “PRC Contract Law” and other applicable statutes, Xi’an
Baorun Enterprise Development Co. Ltd. and Andong Gas Station have
entered into the agreement as follows regarding the leasing of Andong Gas
Station:

    

    Article
I          Two Parties to This
Agreement

    

    
      	
              Lessor: 

            	
              Xi’an
      JindouGas Station (“Party A”)

            

    

    
      	
              Registered
      Address: 

            	
              Xilu
      Road, Xi’an

            

    

    
      	
              Legal
      Representative: 

            	
              BAI
      Jin

            

    

    

    
      	
              Lessee: 

            	
              Xi’an
      Baorun Enterprise Development Co. Ltd. (“Party
    B”)

            

    

    
      	
              Registered
      Address: 

            	
              7
      Huoju Road, New Century Plaza,
Xi’an

            

    

    
      	
              Legal
      Representative: 

            	
              GAO
      Xincheng

            

    

    

    Article
II        Content of the
Lease

    

    Party A
shall lease the gas station located at Xilu Road, Xi’an to Party
B.  The said station occupies a ground area of 8 mu, including 12 gas
filling machines, 4 storage tanks with a total capacity of 240 cubic meters and
a rain shed of about 1000 square meters.

    

    Article
III       Term of the Lease

    

    1. The
term of the lease starts on December 15, 2009 to December 14, 2029.

    

    2. This
Agreement will take effect upon execution and the start of the lease is on the
day when Party B takes over the station.

    

    Article
IV       Rent and Payment Method

    

    1. The
annual rent for the station is RMB 1,800,000.00 even and the total rent for the
entire 10-year term of the lease is RMB 18,000,000.00 even.

    

    2. Upon
execution hereof and within 5 days after the gas station’s operation is turned
over to Party B, Party B shall pay to Party A 80% of the total rent in the
amount of RMB 14,000,000.00; and after the completing of the applicable
registration procedures regarding the station and confirming the remaining
issues from Party A’s operation, Party B shall pay to Party A the balance of 20%
of the rent.  Party A shall bear the fees for change registration
procedures.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    [Article
V to Article XV same as the agreement with Andong.]

    

    Lessor:

    

    Xi’an
JindouGas Station (Seal)

    Legal
Representative: BAI Jin (Signature)

    

    Lessee

    

    CBEH
(Seal)

    Legal
Representative: XIANG Shanqiang (Signature)

    

    Date:    
December 14, 2009

    

    Place: 
Xi’anUnassociated Document

    Exhibit
10.39

    

    [UNOFFICIAL
ENGLISH TRANSLATION SOLELY FOR REFERENCE]

    

    Contract
No.: zc20100106

    

    Finished
Oil Sales Contract

    

    Party A:
Chongqing Oil Subsidiary Company of China Petroleum & Chemical
Corporation

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

    

    

    Pursuant
to the Contract Law of the People’s Republic of China, and relevant laws and
regulations, based on equal and mutual benefits, and same value considerations,
through negotiations, both parties execute the contract.

    

    1. Item
(hereinafter “Oil Product”), Amount and Price: (Unit: Ton, Yuan/Ton,
Yuan)

    

    
      
        
          
            
              
                	
                        Arrival
      Stop (Harbor)

                      	
                        Item

                      	
                        Amount

                      	
                        Price

                      
	
                        Wangzhou,
      Peiling

                      	
                        Gasoline

                      	
                        90000

                      	
                        Fluctuate
      in line 

                        with
      market 

                        conditions

                      
	
                        Wangzhou,
      Peiling

                      	
                        Diesel

                      	
                        70000

                      	
                        Fluctuate
      in line 

                        with
      market 

                        conditions

                      

              

            

          

        

      

    

    Note: The
supply amount is the actual shipping amount.

    

    2.
Standard of Quality:

    

    The
gasoline of the Oil Product set forth in this contract reaches the standard of
GB17930-2006. The Diesel Product set forth in this contract reaches the standard
of GB252-2000. In the event both parties cannot reach agreements to the quality,
it shall base on the examination report rendered by the quality examination
institution of Sichuan. In the event the quality of Oil Product has problems,
Party A is entitled to reject the Oil Product, and Party B shall assume all of
the results.

    

    3.
Delivery of Oil Product:

    

    The
delivery of the items shall be in accordance with the chart listed above. An Oil
depot designated by Party A is responsible for the accepting and unloading
work.

    

    4.
Standard of Measurement and Exhaust

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    Railway
transportations are based on the measurement of loaded cars. The measurement is
executed in accordance with the “Measurement and Management Standard of Oil
Products of China Petroleum and Chemical Corporation”. In the event the exhaust
of transportation is within 3‰, both parties make up a deficiency to each other;
n the event the exhaust exceeds the aforesaid standard, Party B shall
assume.

    

    5.
Payment:

    

    Using the
delivery and one ticket system as the payment method, the price of payment is
the delivered price. Party A shall pay off the payment after receiving the Oil
Product and A.V.T. invoices.

    

    6.
Alteration and Cancellation

    

    6.1 Both
Parties may negotiate to change or cancel the contract. The alteration or
cancellation of the contract shall be in writing.

    

    6.2 In
the event the followings occur, either party may unilaterally cancel the
contract:

    

    6.2.1 Due
to the force majeure, the purpose of the contract cannot be
realized.

    

    6.2.2
Without the other party’s written consent, one party transfers rights and
obligations of the contract in part or in whole to a third party.

    

    6.3 After
the contract is cancelled, the payment, clearance and dispute provisions of the
original contract survive and still are effective.

    

    6.4 The
party that cancels the contract shall perform the obligation to notify the other
party when cancelling the contract.

    

    7.
Breach

    

    7.1 In
the event the quality of Oil Product Party B delivered does not qualify and
cause losses of Party A and the third party, Party B shall compensate all losses
incurred to Party A, and be responsible for replacing the Oil Product having
quality problems, pay Party A the penalty, which is 1% of the total amount of
the contract. All expenses incurred by replacing the Oil Product shall be
assumed by Party B.

    

    7.2 In
the event the occurrence of other breaches, the breaching party shall compensate
the other party all losses incurred by its breach. In case both parties are at
fault, each party shall assume its relevant liabilities.

    

    8. Force
Majeure

    

    8.1 In
the event the occurrences of the force majeure, for example, fire, earthquakes,
typhoons, floods and natural disasters, and other unforeseeable, unavoidable,
and insurmountable events cause the non-performance of the obligations of the
contract in whole or in part, the affected party or both parties shall not
assume breach liabilities, but shall notify the other party within 48 hours
after the occurrence of the force majeure, and provide the other party with
valid evidencing documents within 7 days after the occurrence of such
events.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    8.2 The
affected party or both parties shall take actions to mitigate the loss caused by
the force majeure to the lowest degree.

    

    9.
Dispute

    

    Any
dispute arising from the contract shall be negotiated by both parties. In the
event the negotiation fails to resolve the dispute, it shall be submitted to the
People’s Court at the place Party A resides.

    

    10.
Effectiveness and Miscellaneous

    

    10.1 The
contract becomes effective after both parties sign and seal on the
contract.

    

    10.2 In
the event any matter is not specified in the contract, both parties may execute
supplemental agreements.

    

    10.3 The
contract consists of two copies; each party holds one copy.

    

    Party A:
Chongqing Oil Subsidiary Company of China Petroleum & Chemical
Corporation

    Legal
Representative or Authorized Person: Zhangping Liu (signature)

    (with
corporate seal)

    

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

    Legal
Representative or Authorized Person: Yongan Zhao (signature)

    (with
corporate seal)

    

    Execution
Date: January 6, 2010Unassociated Document

    
      Exhibit
10.40

       

      [UNOFFICIAL
ENGLISH TRANSLATION SOLELY FOR REFERENCE]

       

    

    Equity
Transfer Agreement

     

    
      	
              Party
      A

               

            	(Transferor):

              (Transferor): 

            	
              YANG
      Baorong

              WU Yang

            
	 	 	 
	
              Party
      B

              Legal Representative:  

            	
              (Transferee)

               

            	
              Xi'an
      Baorun Industrial

              GAO Xincheng

            

    

     

    Parties A
and B have entered into the agreement as follows regarding the transfer of all
the equity interest held by Party A in Hanyang Jinzheng Petroleum Sales Co. Ltd
(“Hanyang”) to Party B:

    

    Article I    Definition of the
Object of this Agreement

    

    1. The
“Equity Transferred” hereunder means:

     

    (1) All the equity interest held by
Party A in Hanyang, including all of its gas stations, gas station ground and
structures, both above and under the ground, and operation facilities and
equipment.

     

    (2) All the certificates, land use
right permits and approvals regarding Hanyang and all of its gas stations that
are in Party A’s possession at the time of the signing of this Agreement and
that shall be provided to Party B pursuant to the provisions herein, copies of
contracts/agreements and all the rights and obligations under such
contracts/agreements, and the gas station projects constructed with Hanyang’s
investment and the land use right to the ground occupied by such projects and
all the structures, both above and under the ground, and operation facilities
and equipment (7 mu of
ground area occupied by gas stations, the type of land is state land with use
right period of 40 years; two-story gas station building to be constructed,
including a sanitation room and employee dormitory, of about 196 square meters;
12 electronic gas filling machines; 5 storage tanks; rain shed and operation
offices of about 988 square meters).

    

    2. The
“Transfer Price” hereunder means the transfer consideration of all the equity
that Party B shall, pursuant to the provisions herein, pay to Party A in the
total amount of RMB 68,000,000,00 even.

    

    Article II    Party A’s Disclosure
of Information Prior to Agreement Execution

    

    1. Prior
to the execution hereof, Party A has already shown to Party B the originals of
the foresaid certificates, land use right permits and approvals regarding
Hanyang.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2. Prior
to the execution hereof, Party A has truthfully informed Party B of the origin,
authenticity and performance status of the foresaid certificates, land use right
permits and approvals regarding Hanyang, the conditions of the structures, both
above and under the ground, within the ground area of the gas station, operation
facilities and equipment, and has no instances of concealment and fabrication;
Party A warrants that it has full ownership of the said assets.

    

    3. The
shareholder assembly and the board of directors of Party A’s enterprise have
made the resolution authorizing the transfer.

    

    Article IV    Payment Method
and Schedule of Transfer Price

    

    1. The
amount of RMB 68,000,000,00 that shall be paid by Party B to Party A must be
deposited by wire transfer into the personal bank account of one of the
shareholders designated jointly by both members of Party A.  Bank
holding the account: Hanyang Industrial Bank Renmin Road 3rd Branch;
account title: YANG Baorong; account number: 2604046001021314440.

    

    2. Within
10 days upon the execution hereof, Party B shall pay to Party A 70% of the
Transfer Price, i.e., RMB 47,600,000.00 even.

    

    3. Within
3 months after the initial payment, Party A must complete all the certification
and permit procedures regarding the gas stations and must have the conditions
ready for operation, and Party B shall pay the 25% of the Transfer Price, i.e.,
17,000,000.00 even; on the day of receiving the Transfer Price, Party A shall
hand over the gas stations for Party B to use.

    

    4. After
one year after the handover of the gas station to Party B for operation, Party B
shall pay Party A the remaining 5% of the Transfer Price, i.e., RMB 3,400,000.00
even.

     

    Article IV    Handover of Seals,
Documents and Assets

    

    1. Upon
receiving the 70% of the Transfer Price, i.e., RMB 47,600,000.00 even, from
Party B, Party A shall hand over all the original documents set forth herein to
Party B for its use; Party B shall sign and affix the seal on the handover list
and must at the same time confirm on the corresponding copies that there are no
discrepancies found in the verification between the originals and the copies of
the said documents and give the copies to Party A for record.

    

    2. Due to
the difficulty in separating Hanyang, its the gas station assets, all the
structures, both above and under the ground, within the ground area of the gas
station, operation facilities and equipment, Party A and Party B must dispatch
inspectors to audit/inventory, verify and ensure that there are no discrepancies
prior to executing this Agreement.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. On the
day of receiving the 70% of the Transfer Price, i.e., RMB 47,600,000.00 even,
from Party B, Party A and Party B will confirm, on the set of two copies of seal
print sample, Hanyang’s seal mold currently used by Party A; Hanyang’s seal
currently used by Party A shall be placed in the joint custody of both Party A
and Party B until the completion of all the change registration procedures; at
such time it shall be destroyed jointly by Party A and Party
B.  Thereafter, Party B may start using the new Hanyang
seal.

     

    Article V    Assumption of Credit
and Debt Obligations Prior to and After the Execution of This
Agreement

    

    1. Prior
to the execution of this Agreement and the handover of the gas stations, Party A
shall be responsible for all the civil credit and debt obligations under Hanyang
and its gas stations; after the execution of this Agreement and the handover of
the gas stations, Party B shall be responsible for all the civil credit and debt
obligations under Hanyang and its gas stations.

    

    2. If,
before the change, the government agencies seek payment from, or assess penalty,
on Hanyang, the responsible party (the party actually in violation of laws and
regulations) shall handle the situation and bear the corresponding legal
consequences.

    

    3. The
company and its gas stations shall not sell, transfer, pledge or dispose of in
any other form the equity interest each holds to any third party.

    

    4. For
the purpose of this acquisition, Party A and Party B must actively assist each
other during the transition period and settle all the issues arising from Party
B’s operation.

    

    Article VI    Confidentiality
Obligation

    

    Party A
and Party B warrant that each shall have confidentiality obligation regarding
the financial, legal, corporate governance or all other information obtained in
connection herewith.  Neither party can reveal this Agreement to any
party other than the parties hereto; otherwise the party in violation of this
confidentiality obligation shall compensate the other party for all the
resulting economical loss.

    

    Article VII    Default

    

    1.
Failure on the part of Party A to fulfill the handover and change registration
obligations on time as set forth herein constitutes default; for each day in
default, Party A shall pay a default penalty equivalent to 0.02% of the Transfer
Price to Party B.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    2.
Failure on the part of Party B to make payment for the Transfer Price on time as
set forth herein constitutes default; for each day in default, Party B shall pay
a default penalty equivalent to 0.02% of the Transfer Price to Party
A.

    

    3. If one
party’s default causes economical loss that exceeds the foresaid default
penalty, then the party in default shall compensate the other party for actual
loss.

    

    4. If
Party B is not able to accept the handover within 30 days after the day on which
Party A completes all the relevant procedures and requests the acceptance of the
gas stations, Party A has the right to terminate this Agreement.  Once
Party B accepts the handover of the gas stations, Party A shall have not right
to demand termination hereof.

    

    Article VIII    Resolution of
Disputes

    

    Any
dispute arising from or in connection with this Agreement should be settled
through negotiation by the two parties.  If negotiation fails, it must
be submitted to the competent People’s Court.

    

    Article IX    Other
Provisions

    

    1. This
Agreement takes effect after it is signed and affixed seal by both
parties.

    

    2. The
two parties may negotiate and make amendments hereof and supplements hereto for
all matters not yet covered herein; all amendments and supplements hereto shall
have equal legal effect.

    

    3. This
Agreement has one set of 8 copies, with 4 copies to each party, and all of them
have the equal legal effect.

     

    
      	
              Party
      A

               

            	WU Yang (signature)
      

              YANG Baorong (signature)

              Hanyang
      Jinzheng Petroleum Sales Co. Ltd (seal)

            
	 	 	 
	
              Party
      B

              Representative:  

            	
              Xi'an Baorun Industrial (seal)

              XIANG Xiaoqiang
(signature)

            

    

    

    Date:
December 13, 2009

    

    Place:
Xi’an

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