Oil Storage Service Agreement
Party A:
456 Bureau of Shaanxi Bureau of Material Reserve
Party B:
Xi’an Baorun Industrial Development Co., Ltd.
Pursuant
to the Contract Law of the People’s Republic of China, based on the volitional,
equal and honesty principles, with regard to the escrow of oil materials,
through negotiations, Party A and Party B hereby reach agreements and executed
this contract.
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1.
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Name
of Escrowed Oil Materials: refined
oil
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2.
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Quality
Inspection upon Entering-into and Delivery-out of Storage and Calculation
Method of Amount:
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(1)
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Quality
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(i)
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The
quality of gasoline and diesel upon entering into the storage: Party A
shall base on the standard provided by Party B to inspect gasoline and
diesel delivered by Party B by the current examination equipments of Party
A. Party A shall examine the main indexes and retain samples in accordance
with regulations. In the event the quality does not reach the standard,
Party A is entitled to reject to receive and notify Party B. The loss
incurred accordingly shall be assumed by Party
B.
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(ii)
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The
quality of gasoline and diesel upon delivery-out of the storage: when the
escrowed gasoline and diesel of Party B are delivered out of the storage,
the samples of them shall be taken from the storage tank and the loaded
railway vessel car, and the quality inspections shall be
conducted.
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(2)
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Amount
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(i)
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The
amount of gasoline and diesel upon entering-into the storage: with regard
to the oil products delivered by Party B, Party A shall evaluate every car
(weights automobile tank cars and railway tank cars), and adopt the last
amount.
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(ii)
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The
amount of gasoline and diesel upon delivery-out of the storage: Party B
shall hold the oil withdraw sheet, and oil-distributing personnel of Party
A shall according to the model, amount and the dense, temperature of the
day to conduct calculations and distribute accordingly. The automobile
delivery-out shall use the amount that Party A weights. Both parties book
the accounting records respectively. After the railway tank car is loaded,
the amount shall be calculated and lead sealed by both parties. Party A
shall not be responsible to the quality of oil products after the
acceptance check and delivery-out of the
storage.
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(iii)
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In
the event the amount of delivery-out of storage is not adequate because
the small amount of last residual oil cannot be fully released due to the
equipment of Party A, with regard to the amount of difference, Party A
shall pay Party B the oil payment at the price calculated based on the
price that Party B receives
oil.
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3.
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Exhaust
of Oil Product
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Gasoline
Exhaust
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(1)
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The
first month general exhaust is calculated according to
4.0‰.
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(2)
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Starting
from the second month, the storage exhaust is calculated according to
1.2‰
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Diesel
Exhaust
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(1)
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The
first month general exhaust is calculated according to
2.0‰.
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(2)
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Starting
from the second month, the storage exhaust is calculated according to
0.3‰
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The
exhaust within the exhaust standard set for above shall be assumed by Party B,
the exceeding part shall be assumed by Party A.
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4.
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Right
and Obligation
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(1)
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Right
and Obligation of Party A
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(i)
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Strictly
complies with Enforcement Rule to National Reserved Oil Materials
Management Guideline to keep the oil
products.
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(ii)
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Assists
with Party B to handle the relevant matters of railway vessel
cars.;
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(iii)
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Provides
with the meal and accommodation service to personnel of Party
B.
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(2)
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Right
and Obligation of Party B
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(i)
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Gasoline
and diesel organization and transportation
work.
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(ii)
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Educates
its workers and drivers to strictly comply with policies and regulations
of Party A, and to obey the management from personnel of Party
A.
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(iii)
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Pays
the escrow fees on time.
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(iv)
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Strictly
complies with the relevant provisions set forth in this
contract.
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5.
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Standard
of Expense and Calculation
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(1)
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The
escrow fee is RMB800,000
yearly.
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(2)
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Party
B shall pay the escrow fees on time. In the event Party B does not pay off
the escrow fee after the expiration of the contract, Party A may entrust
the qualified business operators to sell the rest of oil products to set
off the escrow fee.
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6.
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Breach
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(1)
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During
the term of escrow, Party A is only responsible for the obligation of
escrow; it has no rights to use. In the event Party A uses without consent
of Party B, and causes failure of delivery of Party B, Party A shall
assume all of the economic losses
incurred.
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(2)
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During
the term of the escrow, Party A shall coordinate with Party B to withdraw
the product. In the event Party B cannot withdraw the product attribute to
the management of Party A, Party A shall assume relevant economic
liabilities.
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7.
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Force
Majeure
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(1)
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In
the event the occurrence of earthquakes, floods, wars, the material
adjustments to policies of national or local governments and other force
majeure factors, either party is not responsible to the other
party.
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(2)
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Either
party or both parties that are affected by the force majeure are obliged
to take actions to mitigate the loss caused by the force majeure to the
lowest degree.
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8.
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Alteration
and Cancellation
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(1)
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Through
the negotiations of both parties, the contract may be altered and
cancelled.
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(2)
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In
the event Party B does not pay the escrow fee in accordance with the
contract, Party A is entitled to reject to distribute oil. Party A may
unilaterally cancel the
contract.
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(3)
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In
the event the superior police changes, both parties shall cancel the
contract in accordance with the superior regulation without
conditions.
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9.
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In
case any matter is not specified in this contract, both parties shall
negotiate to resolve in accordance with the Economic Contract Law of the
People’s Republic of China. In the event the contract shall be amended,
the amendment shall be agreed by both
parties.
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10.
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This
contract becomes effective after both parties execute the contract. The
effective duration is from January 1, 2009 through December 31,
2010.
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12.
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This
contract consists of two copies, each party holds on
copy.
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13.
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Any
dispute occurs and negotiation fails to resolve the dispute, the dispute
shall be solved at the registration place of Party
B.
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Party A:
456 Bureau of Shaanxi Bureau of Material Reserve
Legal
Representative: (signature)
(with
corporate seal)
Party B:
Xi’an Baorun Industrial Development Co., Ltd.
Legal
Representative: (signature)
(with
corporate seal)
