Document:

execcompplan.htm

EXHIBIT 10.15

Framework for the 2010 Annual Executive Bonus Plan

The 2010 executive annual bonus plan has the following elements:

Participants:                      Alan Kestenbaum and Jeff Bradley

Terms of bonus pool calculation:

	
1.  

	
The bonus pool is calculated as the sum of 8% of “modified EBITDA” and 2% of “modified free cash flow” (using the same definitions as used in the 2009 plan). A detailed description of modified EBITDA and modified free cash flow are set forth in Exhibit A.

	
2.  

	
All calculations under the Plan are to be based upon the results for the calendar year 2010.

	
3.  

	
The results of acquisitions will be included in making the calculations of modified EBITDA and modified free cash flow.

	
4.  

	
“One time costs” will be excluded in making the calculations of modified EBITDA and modified free cash flow. The definition of one-time costs is set forth in Exhibit B.  The Compensation Committee may elect, in its judgment, not to exclude certain one-time costs that otherwise would be excluded as a result of the definition.

	
5.  

	
The bonus pool is capped at $20,000,000.

Payout terms:

1.      Bonus pool amount is payable 70% to Alan Kestenbaum and 30% Jeff Bradley.

	
  

	
2.

	
Payouts will be made in accordance with the deferral plan set forth in Exhibit C.

	
  

	
3.

	
Deferred payments will be made in Restricted Stock Units (RSUs) that proportionally vest over three years but are not delivered until the end of the third year. (The departure of either will not increase the amount available to the other.)

Additional deferral:

	
  

	
1.

	
Additional voluntary deferral will be available for the portion of the bonus not subject to mandatory deferral, as provided in Exhibit D.

Other terms:

	
  

	
1.

	
The accrual of any bonus under the bonus pool is subject to the Company meeting a threshold performance requirement that the fraction determined by dividing modified EBITDA (including the appropriate bonus accrual) for the year ending December 31, 2010 by average Committed Capital exceed 0.2. A detailed description of “Committed Capital” is set forth in Exhibit A.  Average Committed Capital will be calculated as the 13 point monthly average of Committed Capital for calendar year 2010, starting with Committed Capital as of 12/31/2009. Committed Capital will exclude the impact of one-time costs defined in Exhibit B. The Compensation Committee may elect, in its judgment, not to exclude certain one-time costs that otherwise would be excluded as a result of the definition.

	
  

	
2.

	
The Committee may exercise negative judgment as noted below in Framework for 2010 relative performance measures attached as Exhibit E.

	
  

	
3.

	
The Plan includes a claw back provision which provides that if the Board determines that there was executive misconduct in a prior period in the preparation of the financial results for that period, the Compensation Committee will determine whether the restatement was material and was a result of executive misconduct in preparation of the financial information, and if so, to what extent “covered payments” should be returned to the company to the extent that such payments were overstated as a result of the change in financial condition. Covered payments include cash incentives paid to the executive found to have actively participated in the executive misconduct for performance during the fiscal year(s).

4.      The plan design is intended to comply with 162(m) requirements.

  

  

  

Exhibit A

Definitions of modified EBITDA, modified free cash flow and committed capital

modified EBITDA for the year is calculated as follows:

Net income plus provision for income taxes, net interest expense and depreciation and amortization equals EBITDA.  EBITDA plus non-cash share based compensation, executive bonus accrual and other non-recurring adjustments equals modified EBITDA.

modified free cash flow for the year is calculated as follows:

modified EBITDA less capital expenditures, cash interest paid, change in working capital and scheduled principal payments on term debt plus interest income and other non-recurring adjustments not considered in modified EBITDA equals modified free cash flow.

Committed Capital for the year is calculated as follows:

short-term debt plus long term debt plus stockholder equity less cash and cash equivalents equals Committed Capital

(example calculations are attached to the original plan document)

  

  

  

Exhibit B

Definition of one-time costs

Items defined by GAAP:

	
·  

	
Restructuring charges

	
·  

	
Non-recurring items

	
·  

	
Impairment charges

Items specified below:

	
·  

	
Start-up or shut down expenses for plants or business lines

	
·  

	
Transaction expenses related to acquisitions or dispositions

	
·  

	
Inventory write-offs

	
·  

	
Penalties or charges related to prior periods

	
·  

	
Litigation awards, charges or professional fees related to litigation or threatened litigation

	
·  

	
Fixed asset write-offs

  

  

  

Exhibit C

Mandatory deferral plan

Deferral percentages are applied to the total bonus pool

	
i.  

	
$ 0 - $ 2 mm    0% deferred

	
ii.  

	
$ 2 - $ 5 mm  20% deferred

	
iii.  

	
$ 5 - $ 8 mm 30% deferred

	
iv.  

	
$ 8- $ 10 mm 40% deferred

	
v.  

	
$ 10 - $12 mm 50% deferred

	
vi.  

	
$ 12 - $15 mm 75% deferred

	
vii.  

	
 $15 - $20 mm 100% deferred

Deferrals are applied to incremental bonus amounts in accordance with a schedule (an illustrative schedule is attached to the original plan document)

In addition, the company will establish ownership requirements for the Executive Chairman and the CEO, requiring that the holding of a significant portion of the deferred stock be held until the ownership guidelines are met

  

  

  

Exhibit D

Voluntary deferral plan

The Company will offer a voluntary deferral of base salary and bonus into restricted stock units (“RSUs”), based upon the value of the shares on the date of deferral. The Company will also offer a match of 20% if deferral is in the form of RSUs. 

Key elements of the plan are: 

	
  

	
a.

	
Limit deferral to 50% of salary

	
  

	
b.

	
Limit deferral to 50% of Bonus up to $1,000,000.  Deferral must be below the mandatory deferral limits.

	
  

	
c.

	
If deferred into RSUs, then 20% match is granted in form of RSUs

	
  

	
d.

	
Deferred compensation that is deferred into RSUs is fully vested. 

	
  

	
e.

	
Matching RSUs vest over 3 years (33% a year) but are delivered in year 3

	
  

	
f.

	
Subsequent deferrals are offered subject to Code Section 409A rules (minimum 5 year re-deferral)

	
  

	
g.

	
If deferred into mutual funds, the deferral will be funded.

	
  

	
h.

	
Standard termination provisions apply to the matched RSUs.  These would include: Change in control, termination for other than cause, death, disability and retirement.  Voluntary termination would not trigger vesting of the matched RSUs. For the avoidance of doubt, this provision applies only to the 20% match and not to the base amount deferred, which shall be payable even if terminated for cause.

  

  

  

Exhibit E

Framework for 2010 relative performance measures

The following relative performance measures, among others will be used by the Compensation Committee to determine if and how much of a reduction should be applied to the 2010 annual bonus plans. It is expected the Committee will examine relative performance quarterly.

Relative performance will be measured against the following:

	
1.  

	
Peer Group

	
2.  

	
Reference Group

	
3.  

	
S&P Small Cap Index

	
4.  

	
S&P Metals Index

	
5.  

	
The Committee may add other “groups” or delete “groups” at any time, including after the plan period, but before a final decision on bonuses is made.

Relative performance measures may include and may not be limited to those below.

	
1.  

	
TSR

	
2.  

	
ROE

	
3.  

	
Net operating profit after tax (NOPAT)/Committed Capital (CC)

	
4.  

	
EBITDA growth

	
5.  

	
NOPAT growth

	
6.  

	
The Committee may add other performance measures or delete performance measures at any time, including after the plan period, but before a final decision on bonuses is made.

	
7.  

	
The Committee may adjust any measure in its judgment to insure a valid comparison.

The Committee will work with the Company when performing it analysis. The Committee ultimately will use its judgment and may weight some measures more heavily than others. The Committee will communicate its conclusions to the Board and request that the Board support the Committee’s conclusions.Exhibit
10.14

    English
Summary of

    LEASE
AGREEMENT

     

    Lessor
(Party A): Ningbo Huaye Steel Processing Co., Ltd.

    Lessee
(Party B): Ningbo Zhehua Heavy Steel Pipe Manufacturing Co., Ltd.

    

    In
accordance with the applicable regulation, the parties reach the following
agreements:

    

    
      	
               
      

            	
              1.

            	
              Description
      of Facility: the facility is located at No. 1 South Tong Yuan Road, Ningbo
      Camel Machinery & Electronics Industrial
  Park.

            

    

    

    
      	
               
      

            	
              2.

            	
              Term:

            

    

    
      
        	
              	
                a. 

              	
                the
      term of this lease agreement is 10 years, from September 1, 2004 to August
      31, 2013

              

      

    

    
      
        	
              	
                b. 

              	
                upon
      the expiration of this lease agreement, Party A has rights to take back
      the facility. If Party B desires to renew the lease agreement, Party B
      shall provide a written notice at least three months prior to the
      expiration of the lease agreement. Upon approval by Party A, the parties
      will enter into a new lease agreement based on the terms of this lease
      agreement.

              

      

    

    

    
      	
               
      

            	
              3.

            	
              Rent
      and Payment Method:

            

    

    
      
        	
              	
                a. 

              	
                the
      rent is RMB 80,000 per month and RMB 960,000 per
  year.

              

      

    

    
      
        	
              	
                b. 

              	
                upon
      the execution of this lease agreement, Party B shall make a deposit equals
      to one month’s rent. Party B shall make a prepayment of three-month’s
      rent.

              

      

    

    

    
      	
               
      

            	
              4.

            	
              Maintenance
      of the Facility: during the term of this lease agreement, if Party B
      discovers any damage or problems with the facility or its ancillary
      equipment, Party B shall notify Party A; Party A shall make the necessary
      repair within 3 days after receipt of such notice; If Party A fails to
      provide timely repair, Party B can make the repair and the related costs
      shall be borne by Party A; During the term of this lease agreement, Party
      B shall take reasonable care of the facility and its ancillary equipments.
      Any damage to the facility caused by Party B’s unreasonable use shall be
      repaired by Party B.

            

    

    

    
      	
               
      

            	
              5.

            	
              Sublease
      and Return of the Facility: Party B shall not sublease the facility to any
      third party without prior written consent of Party A. If Party B subleases
      the facility without Party A’s prior approval, Party A has no obligation
      to return the deposit or rent. The facility shall be at workable condition
      when Party B returns the facility to Party
A.

            

    

    

    
      	
               
      

            	
              6.

            	
              Other
      Agreements: during the term of this lease agreement, the parties shall
      comply with the applicable laws and regulations; Party A shall have right
      to urge and assist Party B in fire, safety and health related matter;
      Party B can decorate the facility at its own expenses, provided that such
      decoration does not affect the structure of the facility; If Party B fails
      to make its rent payment for one month, Party A has right to a liquidated
      damage of 5% of the due and unpaid rent and has right to terminate this
      lease agreement; upon the expiration of this lease agreement, Party B has
      right of first refusal.

            

    

    

    
      	
               
      

            	
              7.

            	
              Miscellaneous:
      during the term of  this lease agreement, if Party A terminates
      the lease agreement in breach of this lease agreement, it shall pay Party
      B a liquidated damage equals to 3-month’s rent; if Party B terminates the
      lease in breach of this lease agreement, Party B shall pay Party A a
      liquidated damage equals to 3-month’s rent. This lease agreement becomes
      effective upon execution by both
parties.

            

    

    

    
      
        	
                Party
      A: Ningbo Huaye Steel Processing Co., Ltd.

              	
                Party
      B: Ningbo Zhehua Heavy Steel Pipe

                Manufacturing
      Co., Ltd.

              
	 	 
	
                (Seal)

              	
                (Seal)

              

      

    

    

    Date:
August 6, 2004.

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