Document:

f8k082708ex10v_ea3chinavlve.htm

     

    Exhibit
10.5

    

    Agreement
For Transfer of Land Use Right and Housing Titles

    

    This
Agreement for Transfer of Land
Use Right and Housing Titles (the “Agreement”)
is entered into as of  August 26, 2008 by and among the following
parties:

    

    
      	
               
      

            	
              Party
      A: Kaifeng High Pressure Valve Steel Casting Limited Liabilities Company
      (开封高压阀门铸钢有限责任公司),
      A limited liabilities company

            

    

    Address:  No.
93, West Xin Song Road, Shunhe District, Kaifeng City, Henan
Province

    Legal
Representative: Zhang, Peizhuang

    

    
      	
               
      

            	
              Party
      B: Henan Kaifeng High Pressure Valve Co., Ltd (河南开封高压阀门有限公司),
      A limited liabilities company

            

    

    Address:
No. 93, West Xin Song Road, Shunhe District, Kaifeng City, Henan
Province

    Legal
Representative: Fang, Siping

    

    Party A
and Party B are referred to herein as the "Parties" collectively and as a
"Party"
individually.

    

    Whereas,

    

    
      	
              1  

            	
              Party
      A is a limited liability company established by two natural persons (Zhang
      Peizhuang and Fang Bin). It owns the land use right to the land lot
      located at No. 93, West Xin Song Road, Shunhe District, Kaifeng City,
      Henan Province and the titles to the buildings
  thereon.

            

    

     

    
      	
              2  

            	
              Party
      B is a subsidiary of China Valves Technology, Inc. in
    China.

            

    

     

    
      	
              3  

            	
              Now,
      the Parties have agreed that Party A will transfer the aforesaid land use
      right and house title to Party B.

            

    

     

    According
to the Law of the People's
Republic of China on Urban Real Estate Administration, Interim Regulations of the People's
Republic of China Concerning the Assignment and Transfer of the Right to the Use
of the State-owned Land in the Urban Areas and other relevant laws and
regulations, and by the principle of equality, mutual consent, mutual benefits
and good faith, the Parties have entered into this Agreement.

     

    
      	
              Article
      1  

            	
              Party
      A will transfer to Party B the land use right to the land lot located at
      No. 93, West Xin Song Road, Shunhe District, Kaifeng City, Henan and the
      titles to the buildings thereon.  This land has been granted
      from the state for the purpose of industrial use with total area of
      256,921.09 m2.  For
      the number of Land Use Right Certificate, please refer to Appendix I to
      this Agreement.  For the layout and location of this land,
      please refer to Appendix II to this Agreement.  The total
      construction area of the buildings thereon is 91,029.55 m2.  For
      a list of the House Title Certificates of the buildings, reference is made
      to Appendix I to this Agreement.

            

    

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

     

    
      	
              Article
      2  

            	
              The
      duration of the land use right to the land lot indicated in Article 1 will
      last until December 1, 2054, as described in the Land Use Right
      Certificate to be issued by relevant regulatory authority to Party
      B.

            

    

     

    
      	
              Article
      3  

            	
              During
      the term of the land use right after Party B acquires the aforesaid land
      use right and the house titles, Party B’s legal rights and interests will
      be protected by the law.  Under certain circumstances, when the
      State takes back the land use right pursuant to due process for the
      purpose of public interests, Party B has the right to obtain reasonable
      compensation for its losses in respect of such land use right and house
      titles pursuant to relevant
regulations.

            

    

     

    
      	
              Article
      4  

            	
              The
      total price for the transfer of the abovementioned land use right and
      house titles will be determined by both Parties through
      consultation.

            

    

     

    
      	
              Article
      5  

            	
              Party
      B will pay Party A in lump sum the price as set forth in Article
      4.

            

    

     

    
      	
              Article
      6  

            	
              After
      the payment of such price by Party B, Party A should complete the
      formalities for registration of the changes in land use right and house
      titles within the period requested by Party B. Party B should coordinate
      with Party A in such process, and Party A will be responsible for payment
      of corresponding fees and taxes.

            

    

     

    
      	
              Article
      7  

            	
              During
      the effectiveness of the land use right transferred hereunder, Party B
      will pay land use fees to the land administrative authority according to
      relevant regulations.

            

    

     

    
      	
              Article
      8  

            	
              Party
      A warrants that when the transfer hereunder occurs, it has exclusive
      ownership of the land use right to the aforesaid land and titles to the
      buildings thereon, there is no dispute in respect of such titles, there is
      no encumbrance or economic burden on such land or buildings (including but
      not limited to any mortgage, outstanding land premium, outstanding public
      utilities fee, or compensation for requisition and relocation), and no
      enforcement action has been taken against such properties by any judicial
      or administrative authority.  If Party A is in breach of such
      warranty, or in case of any untruthfulness, inaccuracy or incompleteness
      of any warranty made in this paragraph, Mr. Fang Siping, who is a
      shareholder of Party A, will, in accordance with the Indemnification
      Agreement attached hereto as Appendix II, indemnify Party B for any costs,
      expenses (including reasonable legal fees), liabilities or losses so
      incurred.

            

    

     

    
      	
              Article
      9  

            	
              Any
      Party that fails to perform its obligations hereunder after the execution
      hereof will be deemed to be in breach of this Agreement.  In
      case of such breach, the non-breaching party has the right to compel the
      breaching party to perform its obligations hereunder, or seek damages or
      any other remedy available under applicable
  laws.

            

    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    
      	
              Article
      10  

            	
              This
      Agreement and its appendices constitute the entire agreement entered into
      between the Parties regarding the subject matter hereunder.  The
      appendices hereto and this Agreement are indivisible from each other and
      will have equal legal effect.

            

    

     

    
      	
              Article
      11  

            	
              The
      Parties may, after mutual consultation, enter into any separate agreement
      in writing regarding any matter not addressed in this
      Agreement.  Such separate agreement will be an integral part
      hereof and will have the same legal effect as this
    Agreement.

            

    

     

    
      	
              Article
      12  

            	
              This
      Agreement may not be amended or revised unless signed in writing by
      authorized representatives of both
Parties.

            

    

     

    
      	
              Article
      13  

            	
              The
      formation, effectiveness, interpretation, execution, performance,
      amendment and termination of this Agreement should be governed by
      published laws of China.

            

    

     

    
      	
              Article
      14  

            	
              This
      Agreement will take effect after the legal or authorized representatives
      of both Parties have signed and attached their official seals to
      it.  Any dispute arising from the performance of this Agreement
      should be resolved by mutual consultation between both
      Parties.  In case no settlement can be reached through such
      consultation, either Party may bring a legal action at the People’s Court
      in the domicile of Party B.

            

    

     

    
      	
              Article
      15  

            	
              This
      Agreement should be executed in five originals, each of which should have
      equal legal effect.  Party A and Party B should each hold two
      originals, and another original should be filed with the real estate
      administrative authority.

            

    

     

    [the
remainder of this page is intentionally left blank]

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
 

    IN
WITNESS THEREOF, both Parties have caused each of their duly authorized
representatives to execute this Agreement on and as of the day and year first
above written.

    
 

    Party
A

    Kaifeng
High Pressure Valve Steel Casting Limited Liabilities Company

    [SEAL]

    

    By:______________________(Seal)

    Name:

    Title:

    
 

    Party
B

    Henan
Kaifeng High Pressure Valve Co., Ltd

    [SEAL]

    

    By:______________________(Seal)

    Name:

    Title:

    
4f8k082708ex10vi_ea3chinavlve.htm

     

     

    Exhibit
10.6

     

    Premises
Lease Agreement

    

    This
Premises Lease Agreement
(the “Agreement”)
is entered into as of  August 26, 2008 by and among the following
parties:

    

    
      Party A
(the Lessor): Kaifeng High Pressure Valve Steel Casting Limited Liabilities
Company (开封高压阀门铸钢有限责任公司)

    

    Domicile:
No. 93, West Xin Song Road, Kaifeng City, Henan Province

    Legal
Representative: Zhang, Peizhuang

    Facsimile:
0378-2995646

    

    
      Party B
(the Lessee): Henan Kaifeng High Pressure Valve Co., Ltd (河南开封高压阀门有限公司)

    

    Domicile:
No. 93, West Xin Song Road, Kaifeng City, Henan Province

    
      Legal
Representative: Fang, Siping

    

    
      Facsimile:
0378-2913714

    

     

    Party A
and Party B are referred to herein as the "Parties" collectively and as a
"Party"
individually.

    

    Whereas,

    

    
      	
              1  

            	
              Party
      A is a duly established limited liabilities company.  It owns
      the land use right to the land lot located at No. 93, Xin Song Road,
      Kaifeng City, Henan and the titles to the buildings
      thereon.  This land lot has been granted by the state for the
      purpose of industrial use.

            

    

     

    
      	
              2  

            	
              Party
      B is a duly-established wholly foreign owned
  enterprise.

            

    

     

    
      	
              3  

            	
              Now,
      the Parties have agreed that Party A will lease parts of the premises on
      the aforesaid land to Party B.

            

    

     

    

    According
to the Contract Law of the People's Republic of
China and other relevant laws and regulations, and by the principle of
equality, mutual consent, mutual benefits and good faith, the Parties have,
after mutual negotiation, entered into this Agreement as to Party B’s lease from
Party A of Factory Premises that are duly authorized to be leased.

     

    
      Article
1    Status of
the Factory Premises to be Leased

    

     

    
      	
              1.1  

            	
              Party
      A hereby leases to Party B the premises and land located at the land lot
      under the Land Use Right Certificate Bian Fang Di Quan Zheng Zi No. 233733
      at No. 93, Xin Song Road, Kaifeng City, Henan , with the exception of the
      premises listed in Appendix I to this Agreement (the factory premises and
      land to be leased to Party B by Party A would hereinafter be referred to
      as the “Factory
      Premises”).

            

    

     

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

     

    
      	
              1.2  

            	
              Party
      A hereby enters into this lease with Party B as the owner of titles to the
      Factory Premises.  Before entering into this Agreement, Party A
      has demonstrated to Party B his Land Use Right Certificate and Building
      Title Certificates under which Party A obtained titles to The Factory
      Premises

            

    

     

     

    
      Article
2    The
Nature of the Lease and For Purpose of Production

    

     

    
      	
              2.1  

            	
              Party
      A has examined the business license or the contemplated business scope of
      Party B.  Party B warrants to Party A that Party B will use The
      Factory Premises strictly in accordance with its approved business scope
      during Party B’s lease thereof.

            

    

     

    
      	
              2.2  

            	
              Party
      B warrants that Party B will not, unless having been approved in writing
      by Party A or by competent regulatory authorities (including work safety
      authority, fire control authority, etc.) according to relevant
      regulations, conduct in the Factory Premises any production activities
      other than those set forth in Article
2.1.

            

    

     

     

    
      Article
3    Delivery
Date and Lease Term

    

     

    
      	
              3.1  

            	
              Party
      A will deliver The Factory Premises to Party B immediately after the
      execution of this Agreement.  The term of this lease will start
      on the date of this Agreement and lasts until the date on which Party B
      acquires titles to the Factory Premises pursuant to the Agreement for Transfer of Land
      Use Right and Building Titles  entered into between Party A
      and Party B on August 26, 2008.

            

    

     

     

    
      Article
4    Rental,
Method and Time limit of Payment

    

     

    
      	
              4.1  

            	
              The
      annual total rental for The Factory Premises will be the RMB equivalent of
      US$ 450,000 (the applicable conversion rate will be the foreign exchange
      rate quoted by the People’s Bank of China for Renminbi on the date of the
      execution of this Agreement).

            

    

     

    
      	
              4.2  

            	
              Party
      B will pay each annual rental prior to December 31 each
      year.  Party B will wire transfer the payment to a bank account
      designated by Party A, or pay the amount in other methods as agreed upon
      in writing by the Parties:

            

    

     

    In case
of any overdue payment, Party B will pay 0.3% of the annual rental as liquidated
damages for each day on which its rental is overdue.

     

     

    
      Article
5    Earnest
Money and Other Fees

    

     

    
      	
              5.1  

            	
              At
      the delivery of The Factory Premises, Party B will pay no earnest money
      for the lease of The Factory
Premises.

            

    

     

    
      	
              5.2  

            	
              During
      the term of this lease, Party B will be responsible for payment of fees
      relating to tap water, electricity, gas, telecommunication, facilities,
      property management, etc.

            

    

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
              5.3  

            	
              During
      the term of this lease, Party A is responsible to secure property
      insurance for The Factory Premises, and Party B is responsible to secure
      property insurance for Party B’s assets in The Factory
      Premises.

            

    

     

     

    
      Article
6    Requirement
on the Use of The Factory Premises

    

     

    
      	
              6.1  

            	
              During
      the term of this lease, Party B shall be responsible for reasonable
      maintenance of the equipment and other assets inside the building; Party A
      will, at its own cost, be responsible to maintain and repair for damages
      during ordinary use of The Factory Premises.  Party A will
      repair within three working days after the receipt of Party B’s
      notice.  If Party A fails to repair within the aforesaid time
      limit, Party B could repair such damages itself, and then promptly inform
      Party A of such repair and present to Party A relevant invoices for the
      expense incurred, and Party A will bear expenses reasonably incurred in
      connection with Party B’s repair.

            

    

     

    
      	
              6.2  

            	
              During
      the term of this lease, Party B will reasonably use and take care of The
      Factory Premises and relevant facilities.  Party B will bear
      maintenance costs relating to damages to The Factory Premises arising out
      of Party B’s improper or unreasonable use
  thereof.

            

    

     

    
      	
              6.3  

            	
              During
      the term of this lease, both Parties will coordinate with each other in
      good faith, and ensure The Factory Premises in usable and safe
      condition.  When Party A examines The Factory Premises for its
      duty of safety administration, Party B will coordinate with Party
      A.  Upon discovering hidden work safety risks with Party B,
      Party A has the right to inform Party B in writing and require it to
      rectify.

            

    

     

    
      	
              6.4  

            	
              If
      Party B is to add equipment or decorations in The Factory Premises, it
      will get Party A’s consent in writing in
  advance.

            

    

     

     

    
      Article
7    The
Status of The Factory Premises Upon Return

    

     

    
      	
              7.1  

            	
              Unless
      Party A has agreed to the extension of this Agreement, Party B will return
      The Factory Premises within ten days from the expiration of this
      lease.

            

    

     

    
       

      Article
8    Sub-lease,
Transfer and Exchange

    

     

    
      	
              8.1  

            	
              During
      the term of this lease, Party B will obtain Party A’s consent in writing
      before it sub-leases any part or the whole of The Factory Premises to any
      third party.

            

    

     

    
      	
              8.2  

            	
              During
      the term of this lease, Party B will obtain Party A’s consent in writing
      before Party B delegates its lease of the Factory Premises to a third
      party or exchanges its lease of the Factory Premises with a third
      party.  After such delegation or exchange, the third party which
      has entered into the delegation or exchange of the lease of The Factory
      Premises will enter into a agreement with Party A for a change in the
      lessee and proceeds to perform this
Agreement.

            

    

     

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
              8.3  

            	
              During
      the term of this lease, if Party A intends to sell or pledge The Factory
      Premises, it will inform Party B three months in advance.  When
      Party A is to sell The Factory Premises or the mortgagee is to foreclose
      on The Factory Premises, Party B has the right of first refusal to acquire
      the Factory Premises on the same
terms.

            

    

     

    
       

      Article
9    Termination
Conditions

    

     

    
      	
              9.1  

            	
              During
      the term of this lease, upon any of the below circumstances, the Agreement
      will terminate and neither Party will be liable to the
    other:

            

    

     

    
      	
              A  

            	
              The
      land use right to the land covered by The Factory Premises is duly taken
      back by the State ahead of
schedule.

            

    

    

    
      	
              B  

            	
              The
      Factory Premises are duly requisitioned for public
    interests.

            

    

    

    
      	
              C  

            	
              For
      purpose of urban planning, The Factory Premises are duly listed among
      properties required to be demolished and
  relocated.

            

    

    

    
      	
              D  

            	
              During
      the term of this lease, The Factory Premises are identified as hazardous
      Factory Premises, or are demolished or lost due to force
      majeure.

            

    

    

    
      	
              E  

            	
              Other
      circumstances under which the lease may be terminated, as agreed upon by
      the Parties in writing.

            

    

     

    
      	
              9.2  

            	
              Under
      any of the below circumstances, either Party may inform the other to
      terminate the Agreement.  If such breach of the Agreement by one
      Party has caused damages to the other Party, the breaching Party will
      indemnify the non-breaching Party for all the direct damages incurred by
      the non-breaching Party:

            

    

     

    
      	
              A  

            	
              Party
      A fails to deliver The Factory Premises within the time limit, and fails
      again to do so thirty days after Party B’s
  notice.

            

    

    

    
      	
              B  

            	
              The
      Factory Premises delivered by Party A do not conform to the provisions of
      the Agreement, thus frustrating the purpose of this lease; or The Factory
      Premises delivered by Party A pose danger to workplace safety or contain
      defect in fire-control rating.

            

    

    

    
      	
              C  

            	
              Party
      A discovers workplace safety problems in Party B, and informs Party B in
      writing and requires it to remedy The Factory Premises, but Party B fails
      or refuses to remedy.

            

    

    

    
      	
              D  

            	
              Without
      Party A’s consent in writing and approvals from competent regulatory
      authorities, Party B changes the Factory Premises’ intended or planned
      production use and conducts production activities other than those set
      forth in Article 2.1.

            

    

    

    
      	
              E  

            	
              Without
      Party A’s consent in writing or approvals from competent regulatory
      authorities (including work safety authority, fire control authority,
      etc.), Party B adds new facilities, modify internal designs, or produces,
      operates, transports, stores and uses hazardous materials or disposes of
      hazardous chemicals.

            

    

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
 

    
      	
              F  

            	
              Without
      Party A’s consent in writing, Party B sub-leases The Factory Premises,
      transfers the lease to a third party, or exchanges the lease with a third
      party.

            

    

    

    
      	
              G  

            	
              Party
      B has been in default on the rental payment for an aggregate of twelve
      months.

            

    

    

    
      	
              H  

            	
              The
      Factory Premises suffer damages due to Party B’s improper use thereof or
      any other negligence.

            

    

    

    
      	
              I  

            	
              Other
      circumstances under which this lease may be terminated, as agreed on by
      the Parties in writing.

            

    

     

    
       

      Article     10Breach

    

     

    
      	
              10.1  

            	
              If
      The Factory Premises contain defects when delivered, Party A will repair
      such defects within ten days from the delivery.  If Party A
      fails to repair within such time limit,  the rental that Party A
      is entitled to will be reduced and relevant provisions relating to the
      rental will be amended.

            

    

     

    
      	
              10.2  

            	
               Party
      A will indemnify Party B for any damages Party B has suffered due to the
      fact that Party A fails to inform Party B of the existence on Factory
      Premises of any mortgage or of any restriction on alienation of its
      title.

            

    

     

    
      	
              10.3  

            	
              If
      Party B changes the construction structure of The Factory Premises, or
      violates relevant technical standards or provisions on fire control and
      safety without Party A’s consent in writing, or exceeds the scope of Party
      A’s consent in writing, Party A is entitled to Party B’s restoration of
      the Factory Premises and payment for
damages.

            

    

     

    

    
      Article
11    Disputes
Resolutions

    

     

    
      	
              11.1  

            	
              This
      agreement is governed by the laws and regulations of the People’s Republic
      of China.

            

    

     

    
      	
              11.2  

            	
              If
      any dispute arises during the performance of this agreement, it will be
      resolved by the Parties through negotiation.  If no resolution
      could be made through negotiation, the dispute will be resolved through
      arbitration.  The Parties mutually agree that the dispute will
      be submitted to Shanghai sub-commission of the China International
      Economic and Trade Arbitration Commission, and will be arbitrated
      according to its arbitration rules.  The arbitration award is
      final and binding on both Parties.

            

    

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    

    
      Article
12    Miscellaneous

    

     

    
      	
              12.1  

            	
              Starting
      upon the date of the execution of this Agreement, the Real Property Lease
      Contract entered into between Party A and Party B on January 20,
      2008 for the properties located at  No. 93, West Xin Song Road,
      Kaifeng City shall immediately be terminated.  All the rights
      and obligations of Party A or Party B under the Real Property Lease Contract
      shall be entirely replaced by this
  Agreement.

            

    

     

    
      	
              12.2  

            	
               During
      the term of this lease, if Party A is to mortgage a part or the whole of
      The Factory Premises, it will inform Party B in writing and warrants to
      Party B: if relevant parties are to dispose of The Factory Premises by
      sale thereof, Party A will, 10 days in advance to such disposal, inquire
      Party B in writing if Party B will exercise its right of first refusal
      with respect to The Factory
Premises.

            

    

     

    
      	
              12.3  

            	
              This
      agreement will take effective after both Parties have signed and attached
      their official seals to it.  After the effectiveness of the
      Agreement, Party A will be responsible to register it according to
      relevant regulations and obtain the registration certificate for the lease
      agreement.

            

    

     

    
      	
              12.4  

            	
              After
      the registration of this agreement, if this agreement is revised or
      terminated, Party A will be responsible to go through formalities for
      alternation or termination registration with the original registration
      authority within fifteen days from such alternation or
      termination.

            

    

     

    
      	
              12.5  

            	
              The
      Parties may negotiate with each other and reach mutual consent on any
      matter not covered in this agreement and then enter into supplemental
      articles.  The supplemental articles and the appendix to this
      agreement are indivisible parts of this agreement, and any handwritten or
      printed word filled in any blank in this agreement, its supplemental
      articles or its appendix will have the same effect as the  main
      body of this agreement.

            

    

     

    
      	
              12.6  

            	
              This
      Agreement and its appendix will be executed in three
      originals.  Party A and Party B will each hold one original, and
      another original should be filed with Kaifeng real estate administrative
      authority.  Each of the three originals should have equal legal
      effect.

            

    

     

     

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    Party A

    

    [Official
Seal]

    Legal
representative of Party A: /s/ Zhang
Peizhuang

                                                            
Mr.
Zhang Peizhuang

    Date of
Execution: August 26, 2008

    Location
of Execution: Kaifeng City, Henan Province, China

    

    

    Party B

    

    [Official
Seal]

    Legal
representative of Party B: /s/ Fang
Siping

                                                            
Mr.
Fang Siping

    Date of
Execution: August 26, 2008

    Location
of Execution: Kaifeng City, Henan Province, China

     

     

    7

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