Velan Srl is a 50/50 owned joint venture company that was started in Italy in 2003. The founding partners in the company were Velan Inc. and BPS, a holding company owned by Roberto Bartolena and his 4 partners who together manage the joint venture company. Despite the great success in growing Velan Srl into a leading manufacturer of API 6D and 6A ball valves, it became increasingly apparent that the 50/50 partnership relationship was not sustainable. The founding partners have agreed that BPS together with 21 Partners, an Italian Private Equity company, will acquire Velan’s 50% share in Velan Srl effective around 8 August 2008. The company will be renamed Valbart and Roberto Bartolena and his 4 partners will hold a majority ownership and continue to manage the company. Velan and Valbart have agreed on a longer term Master Supply Agreement, according to which Valbart will continue to manufacture and supply Velan brand API 6D and 6A trunnion mounted ball valves to the Velan group. Valbart will manufacture valves with the Valbart name for its own sales and with the Velan name for sales through the Velan Group. Due to Velan Srl’s large backlog of orders at the time of the change in ownership, Velan has granted Valbart the right to continue to manufacture and sell its ball valves under the Velan brand name for a one-year transition period even though Velan will no longer be an owner of the company. For any Velan brand valves sold by Valbart during this transition period, Valbart will take 100% responsibility since Velan is no longer an owner of the company.