Unassociated Document


    Exhibit
10.11

    (English
Translation)

    


    Workshop
Lease and Processing Cooperation Agreement

    


    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

     

    
      
        
          	
                  1)

                	
                  Area
      of Workshop:

                	
                  3,600
      m2;

                	 
      
	 
      	 
      	 
      	 
      
	
                  2)

                	
                  Area
      of Office Space:

                	
                  64
      m2,    Area of Office in Workshop

                	
                  40m2

                
	 
      	 
      	 
      	 
      
	
                  3)

                	
                  Equipments:

                	
                  Bridge
      Crane : 50/10t*28.5m

                	
                  2

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  Semi-gantry
      cranes 2.8t*13.5m

                	
                  4

                


        

      

    

     

    
      
        	 	
                4)

              	
                Other
      Facilities: Pipelines
      delivering Oxygen, Carbon Dioxide, Cutting Gas and etc, Gas
      Tank,  Electrical Distribution
      Room

              


      

    

     

    Article
Two              Term
of Lease

    


    
      	
               
      

            	
              1)

            	
              The
      term of lease for workshop, office space, machinery equipments and the
      other facilities mentioned in Article One is two
  years;

            


    

    


    
      	
               
      

            	
              2)

            	
              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.

            


    

    


    
      	
               
      

            	
              3)

            	
              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.

            


    

    


    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:

    


    
      	
               
      

            	
              a)

            	
              1000t
      Hydraulic Press :

            	
              RMB
      300/hour;

            


    

    


    Unit price for processing

    


    PL6-14= RMB 800/T; pl16-32= RMB 900/t ;
PL32 and up = RMB 1000 / t.

    


    
      	
               
      

            	
              b)

            	
              Pretreatment
      of steel shot: Sa2.5 = RMB 300/t, Sa2 = RMB
  250/t.

            


    

    


    
      	
               
      

            	
              c)

            	
              Bending
      Machine (Folding Machine) :

            


    

    


    PL6-14 = RMB 850/t, PL16-32 = RMB
950/t, PL32 and up = RMB 1050/t.

    


    
      	
               
      

            	
              d)

            	
              Machine
      Processing :

            


    

    


    130 mm Boring
Bed                        RMB
900 / unit ;

    


    Mid-size Boring
Bed                
      RMB 700 / Unit ;

    


    5m Vertical
Lathe                            RMB
1200 / Unit ;

    


    12502   Lathe                             
     RMB 1200 / Unit ;

    


    Digital Controlled
Lathe    RMB 800 / Unit;


    
      
         


      

      
         


        
          

        

      

      
         


      

    

    


    Other
Machines:                   RMB
600 / Unit ;

    


    Steel Part
Processing                     RMB
2000 / t.

    


    
      	
               
      

            	
              e)

            	
              Painting:
      35 Micron Film = RMB 4 / square
meter.

            


    

    


    Article
Eight             Payment

    


    
      	
               
      

            	
              1)

            	
              50%
      of rent is immediately payable on the day of lease, another 50% is payable
      after six months of the day of
lease

            


    

    


    
      	
               
      

            	
              2)

            	
              Processing
      service, power and water are billed monthly, 100% payable within the first
      10 days of the immediately successive
month

            


    

    


    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

    


    
      
        	
                Signature
      : /s/ Sun,
      Yong Lv

              	
                Signature:
      /s/ Li,
      Dong

              
	 
      	 
      
	
                Date:    August, 10,
      2010

              	
                Date
      : August 10,
      2010