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To: Jurgis Bekepuris who wrote (41822)	3/17/2011 3:08:22 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78984

the question is what did KPMG sign off. CBEH does not really own anything, except a "series of contractual agreements" within the jurisdiction of the PRC. We do not own any equity interest in Xi’an Baorun Industrial. In order to meet domestic ownership requirements under PRC law, which restricts foreign companies from operating in the finished oil and biodiesel industry, our wholly-owned subsidiaries entered into a series of contractual agreements with Xi’an Baorun Industrial, which allow us, among other things, to secure significant rights to control Xi’an Baorun Industrial’s business operations, policies and management, to approve all matters requiring stockholder approvals, and give us the right to receive service fee on a monthly basis from Xi’an Baorun Industrial equal to 100% of the monthly net income of Xi’an Baorun Industrial . sec.gov There is one similar legal construct that i believe Paul Senior owns (forgot the ticker, it was some sort of outfit with mobile cement plants). I am surprised to see KPMG signing off this balance sheet. Somebody is clearly wrong here.