Workshop Lease and Processing Cooperation Agreement
Exhibit
10.11
(English
Translation)
Dalian
Shengyang Heavy Industry Co, Ltd. (hereafter Party A)
Daliang
Heavy Mining Equipment Manufacturing Co, Ltd (hereafter Party B)
Party A
is hereby to let the workshop, office space and the affixed equipments to Party
B, and Party B also provides Service of Semi-Processed Manufacture to Party A.
After negotiation, both parties agree to the following provisions:
Article
One Workshop,
Office Space, machine and Other Facilities
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1)
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Area
of Workshop:
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3,600
m²;
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2)
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Area
of Office Space:
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64
m², Area of Office in Workshop
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40m²
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3)
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Equipments:
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Bridge
Crane : 50/10t*28.5m
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2
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Semi-gantry
cranes 2.8t*13.5m
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4
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4)
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Other
Facilities: Pipelines
delivering Oxygen, Carbon Dioxide, Cutting Gas and etc, Gas
Tank, Electrical Distribution
Room
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Article
Two Term
of Lease
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1)
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The
term of lease for workshop, office space, machinery equipments and the
other facilities mentioned in Article One is two
years;
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2)
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At
the end of two year term, if Party B wishes to renew, the price shall be
re-negotiated, and Party B shall have right of “first refusal” when
considering renewal.
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3)
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Given
circumstance emerging to Party A, it shall give Party B a three month
notice in the second year of the lease in order to repossess the
premise.
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Article
Three The
annual rent is RMB 600,000 even.
Article
Four Unless
approved by Party A, Party B shall not change the existing structure of
premise. If laying a foundation for equipment is necessary, under the
condition that the main structure of premise is not to be affected, the
construction shall be proceeded only with the approval of Party
A. The premise shall remain “as is” after it is
used.
Article
Five The
ownership of workshop, office space, machinery equipments and the other
facilities mentioned in the Article One is in the title of Party A, which Party
B shall not account for its asset. Immediate after the day of lease signed,
Party B shall has right to manage and maintain the premise, but is required to
submit report of management to Party A upon request. If Party B
decides not to renew, it is required to repair the damaged machine and
equipments to “as is”.
Article
Six
The gas and power used by Party B shall be measured by separated
ammeter. The amount of use is to be charged based on the data
collected from the meter-reading.
Article
Seven Any
short term, temporary and small space use of Gantry Crane space is free. But the
long term or large space use will be charged, generally at the rate of RMB 4 per square meter per
day.
Article
Eight If
Party B decides to process parts in the factory of Party A, Party A shall give
priority to such consideration. The price shall be negotiated by both
parties. Generally Party A is charging in according to the following
fee schedule:
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a)
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1000t
Hydraulic Press :
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RMB
300/hour;
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Unit price for processing
XX0-00x XXX 800/T; pl16-32= RMB 900/t ;
PL32 and up = RMB 1000 / t.
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b)
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Pretreatment
of steel shot: Sa2.5 = XXX 000/x, Xx0 x XXX
250/t.
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c)
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Bending
Machine (Folding Machine) :
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PL6-14 = XXX 000/x, XX00-00 x XXX
950/t, PL32 and up = XXX 0000/x.
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d)
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Machine
Processing :
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130 mm Boring
Bed XXX
000 / unit ;
Mid-size Boring
Bed
XXX 000 / Unit ;
5m Vertical
Lathe XXX
0000 / Unit ;
12502 Lathe
RMB 1200 / Unit ;
Digital Controlled
Lathe XXX 000 / Unit;
Other
Machines: XXX
000 / Unit ;
Steel Part
Processing RMB
2000 / t.
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e)
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Painting:
35 Micron Film = RMB 4 / square
meter.
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Article
Eight Payment
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1)
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50%
of rent is immediately payable on the day of lease, another 50% is payable
after six months of the day of
lease
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2)
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Processing
service, power and water are billed monthly, 100% payable within the first
10 days of the immediately successive
month
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Article
Nine Party
A and B shall abide to this agreement and shall resolve dispute through
negotiation.
Article
Ten
This agreement has two original copies, each held by Party A
and Party B.
Party A:
Dalian Shengyang Heavy Industry Co, Ltd
Party B :
Daliang Heavy Mining Equipment Manufacturing Co, Ltd
Seal in
Red : Dalian Shengyang Heavy Industry Co, Ltd
Seal in
Red : Dalian Heavy Mining Equipment Manufacturing Co, Ltd
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Signature
: /s/ Sun,
Yong Lv
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Signature:
/s/ Xx,
Xxxx
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Date: August, 10,
2010
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Date
: August 10,
2010
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