Document:

Unassociated Document

     

    Employment
Contract

     

    Employment
Contract

    Of
Xi’an Baorun Industrial Development Co., Ltd. 

     

    
      
        
          
            	
                    Party
      A:

                  	
                    Xi’an
      Baorun Industrial Development Co., Ltd.

                  
	 
      	
                    Address:
      Room 10720, Dongxin Century Plaza, No.7,

                    Huoju
      Road, Xi’an 10720

                    Legal
      Representative: Gao Xincheng

                  
	 	 
	
                    Party B:

                  	
                    Gao
      Xincheng

                  
	 
      	
                    Home
      Address:

                    Date
      of Birth: June 13, 1963

                    ID/Passport
      Number: 610203630613361

                    Registered
      Permanent
Address:

                  

          

        

      

    

     

    Chapter 1- General
Provisions

     

    
      	
              1.

            	
              Pursuant
      to the Labor Law of the People’s Republic of China(hereinafter “Labor
      Law”), the Employment Law of the People’s Republic of China(hereinafter
      “Employment Law”) and other relevant regulations, in consideration of the
      mutual promises and covenants made herein, and for other good and valuable
      consideration, the receipt and sufficiency of which is acknowledged, Party
      A and Party B (collectively referred to as the “Parties”) hereby agree as
      follows:

            

    

     

    Chapter 2-
Term

     

    
      	
              2.

            	
              This
      Contract shall be a contract with a fixed term of 3 years, from October
      25, 2010(“Starting Date”) to October,
2013.

            

    

     

    
      	
              3.

            	
              [Intentionally
      Omitted]

            

    

     

    
      	
              4.

            	
              If
      upon the expiration of the term, Party A and Party B agree to renew this
      Contract, they shall execute the Agreement to Renew Employment Contract
      attached to this Contract as Appendix A, or shall execute a new employment
      contract.

            

    

     

    Chapter 3- Scope of
Work

     

    
      	
              5.

            	
              Party
      B agrees to assume the position of Chairman (or engage in ____) pursuant
      to the work needs of Party A.  The position duty, work task,
      objective, disciplines and other relevant management rules shall be
      implemented according to the work standards and other rules prescribed by
      Party A.  The main work location of Party B shall be
      Xi’an.

            

    

     

    CONFIDENTIAL

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Employment Contract

     

    
      	
              6.

            	
              Both
      Parties acknowledge that, Party A shall have the right to change the type
      of work, job title and position, job duties and work location of Party B
      at any time according to the business needs of Party A or ability or work
      performance or actual situation of Party B, provided, however, that such
      change shall be made in good faith with reasonable
      causes.  Party B shall be subject to any such changes as deemed
      necessary and appropriate in the sole judgment of Party
  A.

            

    

     

    Chapter 4- Duties of Party
B

     

    
      	
              7.

            	
              Party
      B hereby agrees that, in addition to the duties and responsibilities
      otherwise set forth herein, during the term of this Contract, Party B
      shall:

            

    

     

    
      	
               
      

            	
              7.1

            	
              devote
      his/her full time, attention and skills during the normal working hours
      designated to him/her hereunder exclusively to the performance of his/her
      duties hereunder, and effectively perform his/her duties and make his/her
      best endeavors to ensure the satisfactory accomplishment of the assignment
      to him/her by Party A; and

            

    

     

    
      	
               
      

            	
              7.2

            	
              perform
      his/her duties hereunder faithfully and diligently for Party A in
      accordance with the terms hereunder, the rules and policies of Party A and
      the applicable laws and regulations, engage in no activities which are in
      violation of any PRC laws or regulations or may be prejudicial to the
      interests of Party A, and seek no personal gains, directly or indirectly,
      by utilizing his/her position or power in Party
  A.

            

    

     

    Chapter 5- Work Schedule,
Labor Protection and Working Conditions

     

    
      	
              8.

            	
              Party
      B shall work five (5) days per week, eight (8) hours per day, with the
      average working hours not exceeding forty (40) hours per
      week.  Party A may require Party B to work overtime due to the
      business needs and Party A shall pay Party B overtime pay in accordance
      with its overtime management rules and the relevant state
      regulations.

            

    

     

    
      	
              9.

            	
              Party
      A shall provide Party B with appropriate working conditions and facilities
      and with labor protection in accordance with the state standards, and
      Party B shall comply with the rules and regulations of work safety and
      sanitation formulated by Party A.

            

    

     

    
      	
              10.

            	
              Party
      A will be responsible for providing education and training to Party B on
      business technologies, labor safety and sanitation and articles of
      association of Party A.

            

    

     

    Chapter 6-
Remuneration

     

    
      	
              11.

            	
              In
      consideration of the duties and obligations assumed by Party B under this
      Contract, Party A shall pay salary to Party B in amount confirmed in
      writing per month, which will be payable on 30th
      of each corresponding month.

            

    

     

    CONFIDENTIAL

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Employment Contract

     

    
      	
              12.

            	
              During
      the term of employment under this Contract, Party A will decide the
      earning prior to tax of Party B based upon Party A’s then current salary
      systems and position adjustment policies.  Party A will pay the
      payment through the individual bank account designated by Party A or
      through other means Party A deems proper.  The amount of salary
      will be stipulated in an offer
letter.

            

    

     

    
      	
              13.

            	
              Party
      B shall be responsible for the payment of due and payable individual
      income tax resulting from the salary and other remuneration paid by Party
      A in accordance with the relevant PRC laws and
      regulations.  Party A, as the withholding person, shall withhold
      the individual income tax and other due and payable tax of Party B prior
      to paying the remuneration to Party B as required by
  law.

            

    

     

    
      	
              14.

            	
              Party
      A shall have the right to adjust the salary and welfare of Party B
      appropriately based on the capability, experience, attitude, performance,
      achievement, working-age and position of Party B as well as according to
      the salary and position adjustment policies and business conditions
      experienced by Party A.

            

    

     

    
      	
              15.

            	
              Party
      A shall deduct the following from the salary payable to Party B in
      accordance with the relevant PRC laws and
  regulations:

            

    

     

    
      	
               
      

            	
              15.1

            	
              The
      individual income tax of Party B;

            

    

     

    
      	
               
      

            	
              15.2

            	
              The
      part of the society insurance and other welfare benefits which are to be
      borne by Party B;

            

    

     

    
      	
               
      

            	
              15.3

            	
              All
      compensation or fines payable by Party B and withheld by Party A on the
      effective court verdict or arbitration
decision;

            

    

     

    
      	
               
      

            	
              15.4

            	
              All
      compensation or fines payable by Party B to Party A according
      to  court verdict or arbitration
  decision.

            

    

     

    
      	
              16.

            	
              Party
      A may, in its discretion, pay a bonus to Party B based upon Party A’s
      business operation situation and articles of association.  The
      detailed amount, conditions and form will be set forth by Party
      A.  Notwithstanding the above, paying bonus should not be deemed
      as an obligation of Party A.

            

    

     

    Chapter 7- Insurance,
Welfare and Leave

     

    
      	
              17.

            	
              The
      Parties shall pay premiums for social security insurance schemes such as
      Pension, Unemployment, Medical Insurance, etc. in accordance with relevant
      PRC laws and regulations.

            

    

     

    Chapter 8- Labor
Discipline

     

    
      	
              18.

            	
              Party
      B shall abide by the Working Rules and articles of association stipulated
      by Party A pursuant to laws. Party B shall strictly adhere to proper
      instructions and decisions of Party A, take care of all assets of Party A,
      and abide by professional morality.

            

    

     

    CONFIDENTIAL

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    Employment Contract

     

    
      	
              19.

            	
              In
      case Party B violates the Working Rules or articles of association of
      Party A, Party A may impose punishment to Party B in accordance with the
      Working Rules or articles of association of Party
  A.

            

    

     

    
      	
              20.

            	
              Party
      A has the right to require Party B to compensate the economic losses
      caused by Party B’s violation of relevant laws, Working Rules or articles
      of association of Party A.

            

    

     

    
      	
              21.

            	
              Party
      A has the right to appropriately amend its rules or articles of
      association at any time based on its business needs. Party A shall notify
      Party B in any way Party A deems proper, including but not limited to,
      through notice, announcement, e-mail and memorandum of any such
      changes.

            

    

     

    
      	
              22.

            	
              Party
      B shall not take position in any other enterprise or company during
      working in Party A.  Any invention, creation, development,
      design, improvement, production made by Party B during working in Party A
      shall belong to Party A, and any intellectual property right arising from
      them (including but not limited to patent right, copyright, know-how)
      shall also belong to Party A.

            

    

     

    Chapter 9-
Confidentiality

     

    
      	
              23.

            	
              Party
      B shall keep the proprietary and confidential information of Party A
      confidential and shall abide by any confidentiality rules set forth by
      Party A. Party B shall not take, use of or disclose any material or
      information of Party A to any third party except on behalf of Party A’s
      and with Party A’s prior written consent. Party B shall execute and abide
      by the Non-disclosure and Non-Competition Agreement (“Confidentiality
      Agreement”).  Where Party B breaches the competition restriction
      obligation under the Confidentiality Agreement, Party B shall pay
      liquidated damages to Party A in accordance with Confidentiality
      Agreement.

            

    

     

    
      	
              24.

            	
              Party
      B agrees that Party A may disclose his/her personal information including,
      but not limited to, Party B’s name, address, nationality, position,
      payment, bank account, this Contract and its renewal and amendment, as
      directly or indirectly required by Party A’s reasonable business and
      operation.

            

    

    
      
      

    

    
       

      Chapter 10- Modification,
Termination and Extension of the Employment Contract

    

     

    CONFIDENTIAL

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Employment Contract

     

    
      	
              25.

            	
              In
      case a modification occurs in the laws and administrative regulations that
      govern this Contract, the corresponding part of this Contract and
      appendixes shall be modified accordingly. In case a major change occurs in
      the circumstances under which this Contract was concluded or there is any
      conflict between this Contract and the relevant PRC laws and regulations,
      so that this Contract cannot be performed anymore, the relevant part of
      this Contract may be modified upon agreement between Party A and Party B
      through amicable consultation based on the requirements of the relevant
      PRC laws and regulations.

            

    

     

    
      	
              26.

            	
              This
      Contract may be terminated upon mutual agreement between Party A and Party
      B in writing.

            

    

     

    
      	
              27.

            	
              Party
      A shall have right to unilaterally terminate this Contract with immediate
      effect without any prior written notice under the following circumstances,
      and will notify Party B of such
termination:

            

    

     

    
      	
               
      

            	
              27.1

            	
              The
      termination of this Contract during the probation period under Article 3
      hereof;

            

    

     

    
      	
               
      

            	
              27.2

            	
              Party
      B seriously violates the labor disciplines or the rules or regulations of
      Party A (including but not limited to the Working Rules or articles of
      association of Party A);

            

    

     

    
      	
               
      

            	
              27.3

            	
              Party
      B causes serious damage to the interests of Party A due to Party B’s
      serious dereliction of his/her duties (including but not limited to,
      his/her duties under Article 7 hereof), or his/her engagement in
      malpractices for seeking personal
gains;

            

    

     

    
      	
               
      

            	
              27.4

            	
              Party
      B has additionally established an employment relationship with another
      employer which materially affects the completion of his tasks
      with  Party A, or Party B refuses to rectify the matter after
      the same is brought to his attention by Party
A;

            

    

     

    
      	
               
      

            	
              27.5

            	
              The
      Employment contract is invalid because Party B uses such means as
      deception or coercion, or takes advantage of Party A’s difficulties, to
      cause Party A to conclude the employment contract, or to make an amendment
      thereto, which is contrary to Party A’s true intent;
  or

            

    

     

    
      	
               
      

            	
              27.6

            	
              Party
      B is criminally prosecuted under the
law.

            

    

     

    
      	
              28.

            	
              Party
      A may terminate this Contract by serving 30 days’ prior written notice to
      Party B or giving Party B one month’s salary in lieu of notice in any one
      of the following circumstances:

            

    

     

    
      	
               
      

            	
              28.1

            	
              where
      Party B, after undergoing a legally prescribed period of medical treatment
      and recuperation for an illness or a non-work-related injury, remains
      unable to carry out the original job, and is also unfit for the job
      otherwise assigned to Party B by Party
A;

            

    

     

    CONFIDENTIAL

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Employment Contract

     

    
      	
               
      

            	
              28.2

            	
              where
      Party B is unable to fulfill the duties of his/her position to the
      standards required under the terms hereof or by Party A, and, despite
      undergoing further training or a transfer of his/her position, remains
      unable to do so;

            

    

     

    
      	
               
      

            	
              28.3

            	
              where
      this Contract cannot be performed due to any major changes of any
      objective circumstances under which this Contract was concluded, and
      following consultation, Party A and Party B cannot agree upon the
      necessary modification to be made to this
  Contract.

            

    

     

    
      	
              29.

            	
              The
      term “major changes of any objective circumstances” stipulated in Section
      27.3 includes but not limited to:

            

    

     

    
      	
               
      

            	
              29.1

            	
              Merger
      of Party A into another business entity, or sale or transfer by Party A of
      substantial portion of the assets it owns to other enterprises or third
      parties;

            

    

     

    
      	
               
      

            	
              29.2

            	
              Material
      adjustment in operative policy or material changes in operative situation
      of Party A;

            

    

     

    
      	
               
      

            	
              29.3

            	
              Serious
      difficulty incurred in the operation of Party
A;

            

    

     

    
      	
               
      

            	
              29.4

            	
              Entry
      into the period of clearing up, or stop of manufacture or business totally
      or partially by Party A;

            

    

     

    
      	
               
      

            	
              29.5

            	
              Declaration
      of bankruptcy, dissolution or liquation by Party
  A;

            

    

     

    
      	
               
      

            	
              29.6

            	
              Decision
      of Party A in ceasing the research and development which directly relates
      to Party B’s work according to the need of business development of Party A
      and/or the actual market situation;
or

            

    

     

    
      	
               
      

            	
              29.7

            	
              Laws
      or regulations newly promulgated by the government that makes either Party
      or both Parties not able to perform this
  Contract.

            

    

     

    CONFIDENTIAL

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Employment Contract

     

    
      	
              30.

            	
              Party
      B may resign his/her job and terminate this Contract during the Contract
      term with a prior written notice of 30 days to Party A.  With
      regard to Party A’s  economic losses arising from Party B ,
      Party A shall have the right to deduct any such amount of economic losses
      from corresponding salary and any other remuneration due and payable to
      Party B and Party A shall still have the right to claim the uncompensated
      economic losses from Party B.

            

    

     

    
      	
              31.

            	
              In
      the event that Party A is close to bankruptcy or faces a bad business
      situation or serious difficulty in the operation, Party A shall explain
      the situation to its employees.  After having solicited opinions
      from the employees, and reported the situation to the administrative
      department for labor, Party A may terminate this
  Contract.

            

    

     

    
      	
              32.

            	
              Party
      A shall not terminate this Contract in accordance with Articles 28 and 31
      hereof where Party B:

            

    

     

    
      	
               
      

            	
              32.1

            	
              is
      engaged in operations exposing him to occupational disease hazards
      and  has not undergone a pre-departure occupational health
      check-up, or is suspected of having contracted an occupational disease and
      is being diagnosed or under medical
observation;

            

    

     

    
      	
               
      

            	
              32.2

            	
              has
      been confirmed as having lost or partially lost his capacity to work due
      to an occupational disease contracted or a work-related injury sustained
      with the Employer;

            

    

     

    
      	
               
      

            	
              32.3

            	
              is
      receiving medical treatment for diseases or injuries related to work
      within the stipulated period of
time;

            

    

     

    
      	
               
      

            	
              32.4

            	
              is
      a female staff member during her pregnancy, maternity and lactation;
      or

            

    

     

    
      	
               
      

            	
              32.5

            	
              has
      been working for the Employer continuously for not less than 15 years and
      is less than 5 years away from his legal retirement
  age;

            

    

     

    
      	
               
      

            	
              32.6

            	
              finds
      himself in other circumstances stipulated in laws or administrative
      statues.

            

    

     

    
      	
              33.

            	
              In
      any of the following circumstances, Party B may terminate this
      Contract:

            

    

     

    
      	
               
      

            	
              33.1

            	
              Party
      A fails to pay the social insurance premiums for Party B in accordance
      with the law;

            

    

     

    
      	
               
      

            	
              33.2

            	
              Where
      Party A forces Party B to work by means of violence, intimidation,
      detention or illegal restriction of personal freedom, or where Party B is
      instructed in violation of rules and regulations or peremptorily ordered
      by Party A to perform dangerous operations which threaten his personal
      safety;

            

    

     

    CONFIDENTIAL

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    Employment Contract

     

    
      	
               
      

            	
              33.3

            	
              Party
      A fail to pay labor remuneration in full and on time or fails to provide
      the labor protection or working conditions as agreed under this
      Contract.

            

    

     

    
      	
               
      

            	
              33.4

            	
              The
      Employment contract is invalid because Party A uses such means as
      deception or coercion, or takes advantage of Party B’s difficulties, to
      cause Party B to conclude the employment contract, or to make an amendment
      thereto, which is contrary to Party B’s true
  intent;

            

    

     

    
      	
               
      

            	
              33.5

            	
              Party
      A’s rules and regulations violate laws or regulations, thereby harming
      Party B’s rights and interests; or

            

    

     

    
      	
               
      

            	
              33.6

            	
              Other
      circumstances in which laws or administrative statues permit Party B to
      terminate his employment contract

            

    

     

    Party B
may terminate the Contract forthwith without giving prior notice to Party A
under the circumstances of article 33.2.

     

    
      	
              34.

            	
              Upon
      the termination of this Contract, Party B shall cease conducting any
      activities on Party A’s behalf or complete the uncompleted matters
      pursuant to Party A’s request, and settle all accounts with Party A. Party
      B shall, within 3 days of the termination of this Contract, return all the
      property and hand over all files and documents (including but not limited
      to written documents and electronic documents) he or she has in his/her
      possession but is the property of Party A, and Party A may carry out the
      resign procedures with the confirmation of the aforesaid properties, files
      and documents and issue resign consent letter .  If Party B
      fails to complete the above hand-over procedures, Party A could refuse to
      handle the procedures of termination for Party B and may set-off any
      amounts due to Party B for the losses Party A suffers
      therefrom.

            

    

     

    Chapter 11- Economic
Compensation and Repayment

     

    
      	
              35.

            	
              Party
      A shall provide economic compensation and/or medical subsidies to Party B
      pursuant to relevant laws and regulations in case Party A terminates this
      Contract according to Article 26, 28 and 31 of this Contract and
      applicable laws and regulations.

            

    

     

    
      	
              36.

            	
              In
      case Party A fails to pay salary, economic compensation or medical
      subsidies to Party B according to relevant laws and regulations and
      stipulations of this Contract, Party A shall bear the statutory liability
      for indemnification to Party B.

            

    

     

    
      	
              37.

            	
              If
      Party B terminates this Contract in breach of the terms and conditions
      specified herein, Party B shall indemnify Party A for its losses incurred
      therefrom according to the relevant laws and
  regulations.

            

    

     

    
      	
              38.

            	
              Before
      Party B is trained at Party A’s expense, Party A may require Party B to
      execute an agreement, pursuant to which the service term may be prescribed
      and if Party B resigns from his/her job by breaching the service term
      stipulated in the Contract, Party B shall at the time of resignation
      reimburse Party A for the training fees
herein.

            

    

     

    CONFIDENTIAL

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Employment Contract

     

    Chapter 12- Settlement of
Labor Disputes

     

    
      	
              39.

            	
              Any
      dispute arising out of the interpretation and performance of this contract
      shall be settled through friendly consultation between the
      Parties.  If the parties fail to reach a solution through
      friendly consultation, one or both parties can bring such dispute to the
      competent Labor Dispute Arbitration Commission within sixty (60) days of
      the dispute.  In case the parties have no disagreement to the
      arbitral award of such Labor Dispute Arbitration Commission, such arbitral
      award is final and binding upon the parties.  In case any party
      is not satisfied with the decision of the arbitration, the party may bring
      a lawsuit to the court having
jurisdiction.

            

    

     

    Chapter 13-
Miscellaneous

     

    
      	
              40.

            	
              Party
      B has been aware of and agreed to abide by the Working Rules, which will
      be provided to Party B from time to time, and shall be of the same legal
      validity with this Contract.  However, this Contract shall
      prevail in the event of any conflict between the Working Rules and this
      Contract.

            

    

     

    
      	
              41.

            	
              Party
      A and Party B could execute the Agreement to Amend Employment Contract
      attached as Appendix B to revise partial provisions of this Contract, or
      conclude a new employment contract upon agreement of
      consultation.

            

    

     

    
      	
              42.

            	
              The
      invalidity and non-enforcement of any provision of this Contract shall not
      affect the validity of any other provision of this
    Contract.

            

    

     

    
      	
              43.

            	
              Failure
      or delay of any Party hereto to exercise a right under this Contract shall
      not constitute a waiver thereof.

            

    

     

    
      	
              44.

            	
              If
      there is any conflict between this Contract and the relevant laws and/or
      regulations, the provisions of the relevant laws and/or regulations shall
      prevail.

            

    

     

    
      	
              45.

            	
              This
      Contract shall become effective from the date of the execution
      hereof.  In case both parties do not execute this Contract on
      the same day, the later date shall be the effective date of this
      Contract.

            

    

    

    
      
        	
                Party
      A: Xi’an Baorun Industrial

                               
      Development Co., Ltd.

              	 
      	
                Party
      B: Gao Xincheng

              
	 
      	 
      	 
      
	
                By:
      /s/ Gao Xincheng

              	 
      	
                By:
      /s/ Gao Xincheng

              
	 
      	 
      	 
      
	
                Name:
      Gao Xincheng

              	 
      	
                Name:
      Gao Xincheng

              
	 
      	 
      	 
      
	
                Date:
      October 25, 2010

              	 
      	
                Date:
      October 25, 2010

              

      

    

     

    CONFIDENTIAL

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    Employment
Contract 

     

    Appendix
A

     

    Agreement
to Renew Employment Contract

    

    
      
        
          
            
              
                
                  
                    	
                            The
      renewed terms of this Employment Contract shall come into force and effect
      as of the ___ day of _____, ____ and shall expire as of the ___ day of
      _____, ____.  All provisions of the original Employment Contract
      shall apply to this renewed Contract.

                             

                            Party
      A
      (chop):                                                             Party
      B (signature):

                             

                            Date:

                             

                          
	
                            The
      renewed terms of this Employment Contract shall come into force and effect
      as of the ___ day of _____, ____ and shall expire as of the ___ day of
      _____, ____.  All provisions of the original Employment Contract
      shall apply to this renewed Contract.

                             

                            Party
      A
      (chop):                                                             Party
      B (signature):

                             

                            Date:

                             

                          

                  

                

              

            

          

        

      

    

     

    CONFIDENTIAL

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Employment Contract 

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  The
      renewed terms of this Employment Contract shall come into force and effect
      as of the ___ day of _____, ____ and shall expire as of the ___ day of
      _____, ____.  All provisions of the original Employment Contract
      shall apply to this renewed Contract.

                                   

                                  Party
      A
      (chop):                                                             Party
      B (signature):

                                   

                                  Date:

                                   

                                

                        

                      

                    

                  

                

              

            

          

        

      

       

      CONFIDENTIAL

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      Employment Contract

       

      
        Appendix
B

         

        Agreement
to Amend Employment Contract

         

        
          	
                  Party
      A and Party B voluntarily and equally agree to make the following
      amendments to this Employment Contract through amicable consultationo

                
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                  ______________________________________________________________________________________________
      o

                
	
                  Besides
      the above amendments, other provisions of the original Employment Contract
      shall remain valid.

                
	 
      	 
      
	
                  Party
      A (chop):

                	
                  Party
      B (signature):

                
	
                  Date:

                	 
      
	 	 
	 
      	 
      
	
                  Party
      A and Party B voluntarily and equally agree to make the following
      amendments to this Employment Contract through amicable consultationo

                
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                  ______________________________________________________________________________________________o

                
	
                  Besides
      the above amendments, other provisions of the original Employment Contract
      shall remain valid.

                
	 
      	 
      
	
                  Party
      A (chop):

                	
                  Party
      B (signature):

                
	 
      	 
      
	
                  Date:

                	 
      
	 
      	 
      

        

        
          
            
              
                 

              

            

          

        

      

      CONFIDENTIAL

       

      
        
          
          

        

        
          12Unassociated Document

    CONFIDENTIALITY AND
NON-COMPETITION AGREEMENT

    
 

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

    
      Address:
Room 10720, Dongxin Century Plaza, No.7, Huoju Road, Xi’an

    

    Legal
Representative: Gao Xincheng

    
 

    Party
B: Gao Xincheng

    ID/Passport
Number: 610203630613361

    Address:

    

    In
consideration of Party B's employment or continued employment with Party A, and
the compensation now and hereafter paid to Party B by Party A, the Parties
hereby agree to enter into this Agreement. For the purposes of this Agreement,
"Group" means Party A
and any entity which is established by Party A for the time being and from time
to time, the holding company, parent or subsidiary or affiliate of Party A, or
any subsidiary or office of the holding company of Party A.

    

    
      	
              1.

            	
              Employment. Party B
      acknowledge that the terms and conditions of his/her employment with Party
      A is provided for in a separate employment agreement between the Parties
      and no provision of this Agreement shall be construed as confirmation of
      Party B's employment with Party A.

            

    

    

    
      	
              2.

            	
              Business: Refined oil
      wholesale business

            

    

     

    
      	
              3.

            	
              Confidential
      Information

            

    

    

    Confidential
Information in this Agreement includes:

    

    
      	
            	
              3.1

            	
              Company
      Information.  Company Information
      means any proprietary information, technical data, trade secrets or
      know-how, including, but not limited to, research, patterns, plans,
      compilations, inventions and developments, products, formulas, designs,
      prototypes, methods, techniques, processes, procedures, computer programs
      and software (whether as source code or object code), database,
      development plans, records for research and development, technical report,
      inspection report, experimental data, operation manual, technical
      documentation, technologies, hardware configuration information, yield
      data, equipment modifications, services, customer lists and customers
      (including, but not limited to, customers of Party A and/or any other
      member of the Group on whom Party B called or with whom Party B became
      acquainted during the term of Party B's employment with Party A), supplier
      lists, partners, markets, pricing, marketing, finances, salary, legal
      business or other business information of the Group disclosed to Party B
      or obtained by Party B from Party A and/or any other member of the Group
      either directly or indirectly in writing, orally or by drawings or
      observation of parts or equipment.  Confidential Information may
      be a complete set of plan, documentation or product, and may also be part
      of the information or elements of the complete set of plan, documentation
      or product.  The Parties further understand that Confidential
      Information does not include any of the foregoing items which has become
      publicly known and made generally available through no wrongful act of
      Party B or of others who were under confidentiality obligations as to the
      item or items involved.

            

    

     

    
      Confidential

        

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              3.2

            	
              Third
      Party Information.  Party B recognize that Party A and/or
      other members of the Group have received and in the future will receive
      from third parties, including subsidiaries and affiliated companies of
      Party A, their confidential or proprietary information subject to a duty
      on Party A’s part and/or the part of other members of the Group to
      maintain the confidentiality of such information and to use it only for
      certain limited purposes.  Party B agrees to hold all such
      confidential or proprietary information in the strictest confidence and
      not to disclose it to any person, firm or corporation or to use it except
      as necessary in carrying out his/her work for Party A consistent with the
      agreement(s) Party A and/or a member of the Group has entered into with
      such third party.

            

    

    

    
      	
              4.

            	
              Media
      of Confidential Information

            

    

    

    
      	
            	
              4.1

            	
              All
      documents, information, photographs, diagrams, notes, reports, letters,
      faxes, magnetic tapes, disks, prototypes, apparatus and any other forms of
      media, which are containing Confidential Information of Party A and held
      or kept by Party B in need of his/her work, shall be owned by Party A, no
      matter whether the Confidential Information is of business
      value.

            

    

     

    
      	
            	
              4.2

            	
              Party
      B shall return Party A all the properties and media contained Confidential
      Information owned by Party A upon Party A's so request or Party B's
      dismissal (whatever the reason is), and shall not reproduce, hold or give
      the media herein above to any other person without authorization of Party
      A.

            

    

     

    
      	
            	
              4.3

            	
              If
      the aforesaid media contained Confidential Information of Party A belong
      to Party B, Party A shall make corresponding economic compensation
      equivalent of the value of the media itself to Party B when Party B
      returns such media to Party A.

            

    

    

    
      	
              5.

            	
              Maintenance
      of Confidentiality

            

    

    

    
      	
            	
              5.1

            	
              Party
      B agrees at all times during the term of his/her employment and
      thereafter, to hold in strictest confidence, and not to use, except for
      the benefit of Party A or the benefit of the Group, or to disclose,
      publicize, release, impart, transfer, to any person, firm or corporation
      (including other employees who are not entitled to know Confidential
      Information in accordance with Party A's internal administrations) without
      written authorization of Party A, any Confidential
      Information.  Party B agrees that he/she shall secure and keep
      such Confidential Information confidential and shall protect and safeguard
      the Confidential Information against any unauthorized use, disclosure,
      report, transfer or publication with at least the same degree of care as
      it uses for its own confidential or proprietary information, but in no
      event use less than reasonable
care;

            

    

     

    
      Confidential

       

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              5.2

            	
              Except
      for the benefit of Party A or the benefit of the Group, Party B shall not
      take any Confidential Information and media contained Confidential
      Information out of Party A's office without written authorization of Party
      A.

            

    

    

    
      	
            	
              5.3

            	
              It
      will be regarded that Party A has agreed that Party B may disclose or use
      Confidential Information once Party B's supervisor of Party A has agreed
      in writing Party B to do so, provided that Party A has clearly stated in
      advance that such superior manager had been granted such
      power.

            

    

    

    
      	
            	
              5.4

            	
              Except
      for the benefit of Party A or the benefit of the Group, Party B shall
      not  inquiry, disclose or discuss the salary, bonus, welfare,
      option or any other payments to or with any other persons except for the
      direct relatives of Party B.

            

    

    

    
      	
              6.

            	
              Intellectual
      Property Rights

            

    

    

    
      	
            	
              6.1

            	
              Works
      Retained and Licensed. Party B have attached hereto, as Exhibit A, a
      list describing all inventions, original works of authorship,
      developments, improvements, and trade secrets which were made by him/her
      prior to his/her employment with Party A (collectively referred to as
      "Prior Works"), which belong to Party B and relate to Party A’s current
      and proposed business, products or research and development, and which are
      not assigned to Party A; or, if no such list is attached, Party B
      represent that there are no 就such Prior
      Works.  If in the course of Party B employment with Party A,
      Party B incorporate into a product, process or machine of Party A and/or
      any other member of the Group the Prior Works owned by Party B or in which
      Party B have an interest, Party A is hereby granted and shall have a
      nonexclusive, royalty-free, irrevocable, perpetual, worldwide license to
      make, have made, modify, use and sell such Prior Works as part of or in
      connection with such product, process or
  machine.

            

    

    

    
      	
            	
              6.2

            	
              Disclosure.  Party
      B agrees that Party B will promptly make full written disclosure to Party
      A or its designee, will hold in trust for the sole right and benefit of
      Party A, all his/her right, title, and interest in and to any and all
      inventions, original works of authorship, developments, concepts,
      improvements, designs, discoveries, ideas, trademarks or trade secrets,
      processes, copyright works, know-how, any other work’s information or
      matter which gives rise or may give rise to any intellectual property of
      whatsoever nature, whether or not patentable or registrable under any law
      of any country, which Party B may solely or jointly conceive or develop or
      reduce to practice, or cause to be conceived or developed or reduced to
      practice, during the period that Party B is in the employ of Party A
      (collectively referred to as
"Works").

            

    

     

    Confidential

     

    
      
      

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
 

    
      	
            	
              6.3

            	
              Intellectual
      Property Rights.  The Parties acknowledge that Party A or
      its designee, has the absolute title, right or interest in and to any and
      all Works made by Party B (solely or jointly with others) during the
      period of Party B's employment with Party A or within one year after Party
      B's dismissal, and which are the duties of Party B  or the tasks
      assigned to him by Party A or its designee, or which are created mainly
      with the materials and technical resources of Party A or its designee and
      under Party A or its designee's responsibility.  Those Works are
      the "service invention-creation (zhi wu fa ming)" and
      "works made for hire (zhi wu zuo pin)" as
      defined under the patent and copyright laws of the People’s Republic of
      China.  Party B understands and agrees that the decision whether
      or not to commercialize or market Works is within Party A’s sole
      discretion and for the sole benefit of Party A and/or any other member of
      the Group.  Party B shall put forward written applications if
      he/she claims for authorship of the works made by him during the period of
      Party B's employment with Party A, and Party B is entitled to such works
      upon written confirmation of Party A that such works are not Works made
      for hire (zhi wu zuo
      pin).  The works made by Party B for which Party B does
      not claim will be regarded as the Works made for hire.  In
      respect of such works of Party B which are not the Works but related to
      the business of Party A or the Group, Party A or any member of the Group
      shall have a preemptive right to acquire for itself or its nominee all or
      any part (at Party A's option) of Party B's rights therein within three
      (3) months of Party B's disclosure to Party A of such
    works.

            

    

    

    
      	
            	
              6.4

            	
              Maintenance
      of Records.  Party B agrees to keep and maintain adequate
      and current written records of all Works made by Party B (solely or
      jointly with others) during the term of his/her employment with Party
      A.  The records will be in the form of notes, sketches,
      drawings, and any other format.  The records will be available
      to and remain the sole property of Party A at all
  times.

            

    

    

    
      	
            	
              6.5

            	
              Patent
      and Copyright Registrations.  Party B agrees to assist
      Party A, or its designee, at Party A's expense, in every proper way to
      secure Party A's (or its designee's) rights in the Works and any
      copyrights, patents, mask work rights or other intellectual property
      rights relating thereto in any and all countries, including the disclosure
      to Party A of all pertinent information and data with respect thereto, the
      execution of all applications, specifications, oaths, assignments and all
      other instruments which Party A shall deem necessary in order to apply for
      and obtain such rights and in order to assign and convey to Party A, its
      successors, assigns, and nominees the sole and exclusive rights, title and
      interest in and to such Works, and any copyrights, patents, mask work
      rights or other intellectual property rights relating
      thereto.  Party B further agrees that his/her obligation to
      execute or cause to be executed, when it is in his/her power to do so, any
      such instrument or papers shall continue after the termination of this
      Agreement.

            

    

    

    
      	
              7.

            	
              Conflicting
      Employment.  Party B agrees that, during the term of
      his/her employment with Party A, Party B will provide full-time services
      to Party A and will not accept, provide or engage in, directly or
      indirectly any other employment, occupation, consulting or other business
      activity related to the business in which Party A and/or the Group is now
      involved or becomes involved during the term of his/her employment, nor
      will Party B engage in any other activities that conflict with his/her
      obligations to Party A. Without unanimous written consent from the Board
      of Directors of Party A, Party B shall not acquire any shares or interests
      of other companies which have business activity related to the business in
      which Party A and/or the Group is now involved or becomes involved during
      the term of his/her employment other than that have been disclosed to
      Party A upon the execution of this
Agreement.

            

    

     

    
      Confidential

       

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
 

    
      	
              8.

            	
              Non-competition.

            

    

    

    
      	
            	
              8.1

            	
              Party
      B agrees that during the course of his/her employment and for a period of
      24 months(Party A shall be entitled to waive or reduce the period at its
      own discretion) immediately following the termination of his/her
      relationship with Party A for any reason, whether with or without good
      cause or for any or no cause, voluntarily or involuntarily, with or
      without notice, Party B will not, without the prior unanimous written
      consent of the Board of Director of Party A, (i) serve as a partner,
      employee, consultant, officer, director, manager, agent, associate,
      investor, or otherwise for, (ii) directly or indirectly, own, purchase,
      organize or take preparatory steps for the organization of, (iii) build,
      design, finance, acquire, lease, operate, manage, invest in, work or
      consult for or otherwise affiliate Party B with, any business, in
      competition with or otherwise similar to Party A's business, as stated
      under Section 2 of this Agreement.  The foregoing covenant shall
      cover Party B's activities in every part of the Territory in which Party B
      may conduct business during the term of such covenant as set forth
      above.  "Territory"
      shall mean (a) the People's Republic of China, (b) Taiwan, (c)
      Hong Kong, (d) Macao, (e) the United States of America, and
      (f) all other countries and/or regions of the
  world.

            

    

    

    
      	
            	
              8.2

            	
              Party
      B acknowledge that Party B will derive significant value from Party A's
      agreement to provide Party B with that Confidential Information of Party A
      and/or any member of the Group to enable Party B to optimize the
      performance of Party B's duties to Party A.  Party B further
      acknowledge that Party B's fulfillment of the obligations contained in
      this Agreement, including, but not limited to, Party B's obligation
      neither to disclose nor to use the Confidential Information of Party A or
      any member of the Group other than for Party A's exclusive benefit and
      Party B's obligation not to compete contained in subsection (a) above, is
      necessary to protect the Confidential Information of Party A or any member
      of the Group and, consequently, to preserve the value and goodwill of
      Party A.  Party B further acknowledge the time, geographic and
      scope limitations of Party B's obligations under Section 8.1 above are
      reasonable, especially in light of Party A's and the Group's desire to
      protect their Confidential Information, and that Party B will not be
      precluded from gainful employment if Party B is obligated not to compete
      with Party A during the period and within the Territory as described
      above.

            

    

    

    
      	
            	
              8.3

            	
              The
      covenants contained in Section 8.1 above shall be construed as a series of
      separate covenants, one for each city, county and state of any geographic
      area in the Territory.  Except for geographic coverage, each
      such separate covenant shall be deemed identical in terms to the covenant
      contained in Section 8.1 above.  If, in any arbitration
      proceeding, the arbitration panel refuses to enforce any of such separate
      covenants (or any part thereof), then such unenforceable covenant (or such
      part) shall be eliminated from this Agreement to the extent necessary to
      permit the remaining separate covenants (or portions thereof) to be
      enforced.  In the event the provisions of Section 8.1 above are
      deemed to exceed the time, geographic or scope limitations permitted by
      applicable law, then such provisions shall be reformed to the maximum
      time, geographic or scope limitations, as the case may be, then permitted
      by such law.

            

    

     

    Confidential

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              8.4

            	
              Party
      B further agrees that Party B will be compensated by Party A upon the
      termination of Party B's employment with Party A and for the performance
      of the covenants that Party B make in this Section 8 of this
      Agreement (hereinafter “Compensation”).  The total amount of
      Compensation shall be the twelve times of monthly-salary based on the
      month when leaving the employ or the lowest amount as required by law,
      whichever is higher(In the case of Party A waive the requirement of
      non-competition or reduce the period, the compensation shall be canceled
      or reduced in proportion respectively). The Compensation will be paid by
      two installments, of which the first installment equal to 1/2 of the total
      amount of the Compensation will be paid within one month after the
      employment is terminated and the other installments equal to 1/2 of the
      total amount of the Compensation will be paid per three months
      thereafter.

            

    

     

    
      	
              9.

            	
              Returning
      Party A's Documents.  Party B agrees that, at the time of
      leaving the employ of Party A, Party B will deliver to Party A (and will
      not keep in Party B's possession, recreate or deliver to anyone else) any
      and all devices, records, data, notes, reports, proposals, lists,
      correspondence, specifications, drawings blueprints, sketches, materials,
      equipment, other documents or property, or reproductions of any
      aforementioned items developed by Party B pursuant to Party B's employment
      with Party A or otherwise belonging to Party A and/or any other member of
      the Group, their successors or assigns.  In the event of the
      termination of Party B's employment, Party B agrees to sign and deliver
      the "Termination Certification" attached hereto as Exhibit B.

            

    

    

    
      	
              10.

            	
              Liability
      for Default.  In the event that Party B breaches this
      Agreement and causes any damages of Party A, he/she shall be liable for
      such breach and shall compensate all damages resulting
      thereof.  The amount of compensation may be deducted directly
      from Party B's salary, bonus and other incomes paid by Party A after Party
      B is informed and has confirmed in written
form.

            

    

    

    
      	
              11.

            	
              Notification
      of New Employer.  In the event that Party B leave the
      employ of Party A, Party B hereby grant consent to notification by Party A
      to his/her new employer about his/her rights and obligations under this
      Agreement.

            

    

    

    
      	
              12.

            	
              Solicitation
      of Employees.  Party B agrees that for a period of 24
      months immediately following the termination of his/her relationship with
      Party A for any reason, whether with or without cause, Party B shall not
      either directly or indirectly solicit, induce, recruit or encourage any
      employees of Party A and/or any other member of the Group to leave their
      employment, or take away such employees, or attempt to solicit, induce,
      recruit, encourage or take away employees of Party A and/or any other
      member of the Group, either for himself/herself or for any other person or
      entity.

            

    

     

    Confidential

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              13.

            	
              Conflict
      of Interest Guidelines.  Party B agrees to diligently
      adhere to the Conflict of Interest Guidelines attached as Exhibit C
      hereto.

            

    

    

    
      	
              14.

            	
              Anti-Corruption
      Policy.  Party B agrees to diligently adhere to the
      Anti-Corruption Policy of Party A attached hereto as Exhibit
      D.

            

    

    

    
      	
              15.

            	
              Representations.  Party
      B agrees to execute any warranties or verify any proper document required
      to carry out the terms of this Agreement.  Party B represent
      that his/her performance of all the terms of this Agreement will not
      breach any agreement to keep in confidence proprietary information
      acquired by Party B in confidence or in trust prior to his/her employment
      by Party A.  Party B has not entered into, and Party B agrees
      he/she will not enter into any oral or written agreement in conflict
      herewith.

            

    

    

    
      	
              16.

            	
              Arbitration.

            

    

    

    
      	
            	
              16.1

            	
              Arbitration.  THE
      PARTIES AGREE THAT ANY DISPUTE OR CONTROVERSY ARISING OUT OF, RELATING TO,
      OR CONCERNING ANY INTERPRETATION, CONSTRUCTION, PERFORMANCE OR BREACH OF
      THIS AGREEMENT, SHALL BE SUBMITTED TO CHINA INTERNATIONAL ECONOMIC AND
      TRADE ARBITRATION COMMISSION ("CIETAC") FOR
      ARBITRATION.  THE ARBITRATION SHALL BE CONDUCTED IN BEIJING IN
      ACCORDANCE WITH THE THEN APPLICABLE ARBITRATION RULES OF
      CIETAC.  THE ARBITRATION AWARD SHALL BE FINAL, CONCLUSIVE AND
      BINDING ON THE PARTIES TO THE
ARBITRATION.

            

    

    

    
      	
            	
              16.2

            	
              Consideration.
      PARTY B UNDERSTAND THAT EACH PARTY’S PROMISE TO RESOLVE CLAIMS BY
      ARBITRATION IN ACCORDANCE WITH THE PROVISIONS OF THIS AGREEMENT, RATHER
      THAN THROUGH THE COURTS, IS CONSIDERATION FOR OTHER PARTY’S LIKE
      PROMISE.

            

    

    

    
      	
              17.

            	
              General
      Provisions

            

    

    

    
      	
            	
              17.1

            	
              Governing
      Law.  This Agreement will be governed by the laws of the
      People's Republic of China, without reference to choice of laws or
      conflict of laws principles.

            

    

    

    
      	
            	
              17.2

            	
              Entire
      Agreement.  This Agreement sets forth the entire
      agreement and understanding between Party A and Party B relating to the
      subject matter herein, supersedes any prior agreement(s) between us
      regarding the subject matter herein, and merges all prior discussions
      between us.  No modification of or amendment to this Agreement,
      nor any waiver of any rights under this agreement, will be effective
      unless in writing signed by the party to be charged.  Any
      subsequent change or changes in Party B's duties, salary or compensation
      will not affect the validity or scope of this
  Agreement.

            

    

     

    Confidential

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    
      	
            	
              17.3

            	
              Severability.  If
      one or more of the provisions in this Agreement are deemed void by law,
      then the remaining provisions will continue in full force and
      effect.

            

    

    

    
      	
            	
              17.4

            	
              Successors
      and Assigns.  This Agreement will be binding upon Party
      B's heirs, executors, administrators and other legal representatives and
      will be for the benefit of Party A, its successors, and its
      assigns.

            

    

    

    
      	
            	
              17.5

            	
              Counterparts.  This
      Agreement may be executed in any number of counterparts, each of which
      shall be enforceable, and all of which together shall constitute one
      agreement.

            

    

     

    Confidential

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

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

     

    Name:
Gao Xincheng

     

    By:
/s/ Gao Xincheng

     

    Party
B: Gao Xincheng

     

    By:
/s/ Gao Xincheng

     

    Confidential

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
A

    

    XI’AN
BAORUN INDUSTRIAL DEVELOPMENT CO., LTD.

    CONFLICT OF INTEREST
GUIDELINES

    

    It is the
policy of Xi’an Baorun Industrial Development Co., Ltd., its subsidiaries,
affiliates, successors or assigns (together, the "Company") to conduct its
affairs in strict compliance with the letter and spirit of the law and to adhere
to the highest principles of business ethics.  Accordingly, all
officers, employees and independent contractors must avoid activities which are
in conflict, or give the appearance of being in conflict, with these principles
and with the interests of Party A.  The following are potentially
compromising situations which must be avoided.  Any exceptions must be
reported to the President and written approval for continuation must be
obtained.

    

    
      	
              1.

            	
              Revealing
      confidential information to outsiders or misusing confidential
      information.  Unauthorized divulging of information is a
      violation of this policy whether or not for personal gain and whether or
      not harm to Party A is intended.  (The Confidential Information,
      Invention Assignment and Non-Competition Agreement elaborates on this
      principle and is a binding
agreement.)

            

    

    

    
      	
              2.

            	
              Accepting
      or offering substantial gifts, excessive entertainment, favors or payments
      which may be deemed to constitute undue influence or otherwise be improper
      or embarrassing to Party A.

            

    

    

    
      	
              3.

            	
              Participating
      in civic or professional organizations that might involve divulging
      confidential information of Party
A.

            

    

    

    
      	
              4.

            	
              Initiating
      or approving personnel actions affecting reward or punishment of employees
      or applicants where there is a family relationship or is or appears to be
      a personal or social involvement (other than as officers of Party A
      appointed by the board of directors of Party
A).

            

    

    

    
      	
              5.

            	
              Initiating
      or approving any form of personal or social harassment of
      employees.

            

    

    

    
      	
              6.

            	
              Investing
      or holding outside directorship in suppliers, customers, or competing
      companies, including financial speculations, where such investment or
      directorship might influence in any manner a decision or course of action
      of Party A.

            

    

    

    
      	
              7.

            	
              Borrowing
      from or lending to employees, customers or
  suppliers.

            

    

    

    
      	
              8.

            	
              Acquiring
      real estate of interest to Party A.

            

    

    

    
      	
              9.

            	
              Improperly
      using or disclosing to Party A any proprietary information or trade
      secrets of any former or concurrent employer or other person or entity
      with whom obligations of confidentiality
exist.

            

    

    

    
      	
              10.

            	
              Unlawfully
      discussing prices, costs, customers, sales or markets with competing
      companies or their employees.

            

    

     

    Confidential

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
              11.

            	
              Making
      any unlawful agreement with distributors with respect to
      prices.

            

    

    

    
      	
              12.

            	
              Improperly
      using or authorizing the use of any inventions which are the subject of
      patent claims of any other person or
entity.

            

    

    

    
      	
              13.

            	
              Engaging
      in any conduct which is not in the best interest of Party
    A.

            

    

    

    Each
officer, employee and independent contractor must take every necessary action to
ensure compliance with these guidelines and to bring problem areas to the
attention of higher management for review.  Violations of this
conflict of interest policy may result in discharge without
warning.

     

    Confidential

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
B

    XI’AN
BAORUN INDUSTRIAL DEVELOPMENT CO., LTD.

    CONFLICT OF INTEREST
GUIDELINES

    

    The
following policies are made and will be enforced by Xi’an Baorun Industrial
Development Co., Ltd., its subsidiaries, affiliates, successors or assigns
(together, the "Company") that:

    

    
      	
              1.

            	
              The
      use of Company funds or assets for any unlawful or improper purpose is
      strictly prohibited.  No payment shall be made to, or for the
      benefit of, government employees for the purpose of, or otherwise in
      connection with, the securing of sales to or obtaining favorable action by
      a government agency.  Gifts of substantial value to or lavish
      entertainment of government employees are prohibited since they can be
      construed as attempts to influence government decisions in matters
      affecting Party A's operation.  Any entertaining of public
      officials, or the furnishing of assistance in the form of transportation
      or other services should be of such nature that the official's integrity
      or reputation will not be
compromised.

            

    

    

    
      	
              2.

            	
              The
      offer, payment or promise to transfer in the future company funds or
      assets or the delivery of gifts or anything else of value to the
      officials, the political parties or officials or candidates of the
      political parties is strictly prohibited for the purpose of influencing
      any act or decision of any such person in his or her official capacity,
      including the decision to fail to perform his or her official functions or
      to use such persons or party’s influence with a the government or
      instrumentality in order to affect or to influence any act or decision of
      such government or instrumentality in order to assist Party A in obtaining
      or retaining business for or with, or directing business to any person or
      entity.

            

    

    

    
      	
              3.

            	
              All
      records must truly reflect the transactions they record.  All
      assets and liabilities shall be recorded in the regular books of
      account.  No undisclosed or unrecorded fund or asset shall be
      established for any purpose.  No false or artificial entries
      shall be made in the books and records for any reason.  No
      payment shall be approved or made with the intention or understanding that
      any part of such payment is to be used for any purpose other than that
      described by the document supporting the
  payment.

            

    

    

    
      	
              4.

            	
              No
      political contribution shall be made, directly or indirectly, with
      corporate funds or assets regardless of whether the contributions are
      legal under the laws of the county in which they are
  made.

            

    

    

    
      	
              5.

            	
              Any
      employee who learns of or suspects a violation of this Policy should
      promptly report the matter to the President, Chief Financial Officer or
      Internal Auditor, as appropriate in the circumstances.  All
      managers shall be responsible for the enforcement of and compliance with
      this Policy, including the necessary distribution to insure employee
      knowledge and compliance.

            

    

     

    Confidential

     

    
      
        
        

      

      
        12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]