Exhibit 10.1
 
AMENDMENT NUMBER 1 TO THE MAKE GOOD ESCROW AGREEMENT

THIS AMENDMENT NUMBER 1 TO THE MAKE GOOD ESCROW AGREEMENT, dated as of August
14, 2009 (this “Amendment”), is entered into by and among China Valves
Technology, Inc. (f/k/a Intercontinental Resources, Inc.), a Nevada corporation
(the "Company"), Bin Li (the "Make Good Pledgor"), Brean Murray Carret & Co.,
LLC as Investor agent (“Investor Agent”), the undersigned, who constitute at
least a majority in interest of the investors in the Company’s August 2008
private placement (the “Investors”) and Escrow, LLC, as escrow agent ("Escrow
Agent").  Capitalized terms used herein but not otherwise defined herein shall
have the respective meanings set forth in the Make Good Agreement (as defined
below).

BACKGROUND
 
The Company and the Investors (including the Purchasers) are parties to that
certain Make Good Escrow Agreement, dated as of August 26, 2008 (the “Make Good
Agreement”).  The parties to this Amendment wish to amend certain provisions of
the Make Good Agreement as set forth in this Amendment.  Section 14 of the Make
Good Agreement provides that the Make Good Agreement may not be changed orally
or modified, amended or supplemented without an express written agreement
executed by the Escrow Agent, the Company, the Make Good Pledgor and the
Investor Agent (upon consent of the Investors holding a majority of the Shares
issued at Closing under the Securities Purchase Agreement (“Major
Investors”)).  This Amendment constitutes a written agreement signed by the
necessary parties in order to effectuate the amendments to the Make Good
Agreement specified below.
 
NOW, THEREFORE, in consideration of the foregoing and the respective covenants
and agreements set forth herein, the parties hereto agree as follows:
 
ARTICLE I
 
AMENDMENTS
 
SECTION 1.1.   Amendment.  The parties hereto agree that the Make Good Agreement
shall be amended as set forth in this Section 1.1.
 
The second and third paragraphs in Section 4(a) of the Make Good Agreement are
each hereby amended and restated in their entirety as follows:
 
 
“In the event that either (i) the Earnings Per Share (as defined below) reported
in the Annual Report of the Company for the fiscal year ending December 31,
2009, as filed with the Commission on Form 10-K (or such other form appropriate
for such purpose as promulgated by the Commission) (the “2009 Annual Report”) is
less than $0.334 per share on a fully diluted basis (as equitably adjusted for
any stock splits, stock combinations, stock dividends or similar transactions)
(the “2009 Guaranteed EPS”) or (ii) the After Tax Net Income reported in the
2009 Annual Report is less than $21,000,000 (the “2009 Guaranteed ATNI”), the
Escrow Agent (on behalf of the Make Good Pledgor) will transfer the 2009 Make
Good Shares to the Investors on a pro rata basis (determined by dividing each
Investor’s Investment Amount by the aggregate of all Investment Amounts
delivered to the Company by the Investors under the Securities Purchase
Agreement) as specified in Exhibit A to this Agreement for no consideration
other than payment of their respective Investment Amount paid to the Company at
Closing and without any need for action or notice by or on behalf of any
Investor.  The “2009 Make Good Shares” means 8,388,688 shares of Common Stock,
as equitably adjusted for any stock splits, stock combinations, stock dividends
or similar transactions.  
 
 
 
1

--------------------------------------------------------------------------------

 
 
In the event that either (i) the Earnings Per Share reported in the Annual
Report of the Company for the fiscal year ending December 31, 2010, as filed
with the Commission on Form 10-K (or such other form appropriate for such
purpose as promulgated by the Commission) (the “2010 Annual Report”) is less
than $0.541 per share on a fully diluted basis (as equitably adjusted for any
stock splits, stock combinations, stock dividends or similar transactions) (the
“2010 Guaranteed EPS”) or (ii) the After Tax Net Income reported in the 2010
Annual Report is less than $34,000,000 (the “2010 Guaranteed ATNI”), the Escrow
Agent (on behalf of the Make Good Pledgor) will transfer the 2010 Make Good
Shares to the Investors on a pro rata basis (determined by dividing each
Investor’s Investment Amount by the aggregate of all Investment Amounts
delivered to the Company by the Investors under the Securities Purchase
Agreement) as specified in Exhibit A to this Agreement for no consideration
other than payment of their respective Investment Amount paid to the Company at
Closing and without any need for action or notice by or on behalf of any
Investor.  The “2010 Make Good Shares” means 8,388,688 shares of Common Stock,
as equitably adjusted for any stock splits, stock combinations, stock dividends
or similar transactions.”
 
SECTION 1.2.   Full Force and Effect.  For the avoidance of doubt, all other
provisions of the Make Good Agreement shall remain in full force and effect.
 

ARTICLE II
 
MISCELLANEOUS
 
SECTION 2.1.   Governing Law.  This Amendment shall be governed by and construed
in accordance with the laws of the State of New York.
 
SECTION 2.2.   Entire Agreement. This Amendment along with the Make Good
Agreement and the other Transaction Documents contains the entire understanding
of the parties with respect to the subject matter hereof and supersedes all
prior agreements, understandings, discussions and representations, oral or
written, with respect to such matters, which the parties acknowledge have been
merged into this Amendment.
 
SECTION 2.3.   Counterparts.  This Amendment may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
 
 
2

--------------------------------------------------------------------------------

 
 
 
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized signatories as of the date first
indicated above.
 
 
COMPANY:
 
 
CHINA VALVES TECHNOLOGY, INC.
 

By:_______________________________
     Name: Siping Fang
     Title:  Chief Executive Officer

Address:   No. 93 West Xinsong Road
   Kaifeng, Henan Province
   China 475002
 
Facsimile:  86-378-2924630
Attn.:  Siping Fang

 
MAKE GOOD PLEDGOR:
 
 
Bin Li
 
___________________________________
 

Address:    1165 Rugglestone Way
    Duluth, GA 30097

Facsimile:  (770) 888-0589
Attn.: Bin Li
 

 
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK -
 Signature page for other parties follows]
 
Signature Page to the Amendment to Make Good Escrow Agreement
 
 
 

--------------------------------------------------------------------------------

 
 
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized signatories as of the date first
indicated above.
 

 
FOR ENTITIES:

_______________________
(Name of Entity)

By:____________________
Name:
Title:

_______________________
(Number of Shares)

FOR INDIVIDUALS:

_______________________
Name:

_______________________
(Number of Shares)
 

Signature Page to the Amendment to Make Good Escrow Agreement
 
 
 

--------------------------------------------------------------------------------

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized signatories as of the date first
indicated above.
 
 
ESCROW AGENT:
 
ESCROW, LLC, as Escrow Agent
 
 
 
By:_______________________________
      Name:
      Title:

Address:   360 Main St.,
   Washington, VA 22747
Facsimile:  (540) 347-2291
Attn.:
 
 
INVESTOR AGENT
 
BREAN MURRAY CARRET & CO., LLC, as Investor Agent

 
 
By:_______________________________
     Name:
     Title:

Address:

Facsimile:
Attn.:
 
Signature Page to the Amendment to Make Good Escrow Agreement