Document:

Exhibit 10.1

 

SEPARATION AND RELEASE AGREEMENT

 

This Separation and Release Agreement (the “Agreement”) between Virtusa Corporation (the “Company” or “Virtusa”) and Mr. Raj Rajgopal (“Executive”) and shall be effective as of the Effective Date (as defined below).

 

WHEREAS, Executive will be transitioning out of the Company;

 

WHEREAS, although Executive’s resignation is not a Terminating Event under Executive’s Employment Agreement (as defined below), the Company and Executive desire to make this transition as smooth as possible for the Company and the Executive; and

 

WHEREAS, all capitalized terms not defined, shall have the meaning set forth in the Employment Agreement.

 

In consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

 

1.                                      Resignation.  Subject to the terms of this Agreement, Executive’s employment shall continue through and include March 1, 2019, at which time his resignation from employment shall be effective at 11:59 p.m. ET.  The last day of Executive’s employment, whether it is March 1, 2019 or an earlier date, is referred to herein as the “Resignation Date.”  On the Resignation Date (or on any earlier date if requested by the Company’s Board of Directors (the “Board”)), Executive shall resign from his positions as the Company’s President, Digital Enterprise Services, and any other positions he holds with the Company.  If so requested by the Company, Executive shall sign any document reasonably requested by the Company to confirm any such resignations.  Although Executive’s resignation is not a Terminating Event under the Executive Agreement dated as of July 15, 2009 by and between the Company and Executive (“Employment Agreement”), the Company values Executive’s past and future contributions and would like to make this transition as smooth as possible.  To that end, the Company is offering Executive certain Transition Benefits, as set forth in Section 3, if he enters into, does not revoke, and complies with this Agreement.  This Agreement constitutes and satisfies the Notice of Termination and other applicable notice provisions in Section 8 of the Employment Agreement.  Notwithstanding the foregoing, the Company may terminate Executive’s employment with the Company for Cause, as defined in the Employment Agreement, at any time prior to March 1, 2019, including if he (i) violates any written agreement with the Company or any written company policy, or (ii) engages in any misconduct or inappropriate behavior, as reasonably determined in good faith by the Company.  For the avoidance of doubt, if Executive’s employment with the Company is terminated for Cause, he shall not be entitled to the benefits set forth in Section 3 of this Agreement.

 

2.                                      Final Payments and Benefits Information.  Regardless of whether Executive enters into this Agreement, the following terms and conditions shall apply:

 

(a)                                 On the Resignation Date, the Company shall pay Executive for all salary earned but not yet paid through the last day of employment.

 

 

(b)                                 Executive acknowledges that, consistent with Company policy, Executive has 160 hours of accrued but unused vacation time as of the date hereof. On the Company’s next regular payroll date after the Resignation Date, Executive will be eligible for payment for all unused, accrued vacation days, if any, through the Resignation Date.

 

(c)                                  The Company shall provide Executive with the right to continue group medical and dental insurance coverage after the last day of employment, under 29 U.S.C. § 1161 et seq. (commonly known as “COBRA”).  If Executive enters into and does not revoke and complies with this Agreement, and provided he is not terminated by the Company for Cause, then his COBRA continuation rights shall be as further described in paragraph 3(b) of this Agreement.  Otherwise, the premiums for COBRA continuation shall be payable by Executive.

 

(d)                                 Executive shall continue to vest in his outstanding equity awards until the Resignation Date pursuant to the equity plans and associated award agreements between Executive and the Company (collectively the “Equity Documents”).  For the avoidance of doubt, all then unvested shares shall lapse and be forfeited as of the day immediately following the Resignation Date.  In accordance with the Equity Documents, Executive must exercise any vested stock options within a limited amount of time from the Resignation Date.  In the interest of clarity, in no event may options that are not exercised within 90 days of the last day of Executive’s employment be deemed to be incentive stock options.

 

(e)                                  Except as otherwise provided herein, Executive’s eligibility to participate in any other employee benefit plans and programs of the Company ceases on the Resignation Date in accordance with applicable benefit plan or program terms.

 

3.                                      Additional Consideration.  If Executive does not accelerate his resignation without the Board’s consent and he is not terminated by the Company for Cause prior to March 1, 2019, and subject to, and in consideration of, Executive’s execution and nonrevocation of and compliance with this Agreement and his subsequent execution of the Certificate attached hereto as Exhibit A (the “Certificate”) within the time period specified therein, as well as his compliance with the terms hereof, Virtusa shall provide Executive with the following termination benefits (the “Termination Benefits”).  Those Termination Benefits consist of:

 

(a)                                 A lump sum payment equal to four months annual base salary (at the rate in effect on the Resignation Date), which is equal to one hundred thirty-three thousand, three hundred thirty-three dollars ($133,333.00) (the “Cash Severance Benefit”).  Such amount shall be less applicable deductions and withholdings and shall be paid in one lump sum payment on the Company’s next regular payroll date that occurs six months after the Resignation Date;

 

(b)                                 Continuation of group health plan benefits to the extent authorized by and consistent with COBRA, with the cost of the regular premium for such benefits shared in the same relative proportion by the Company and Executive as in effect on the Resignation Date, until six months after the Resignation Date.  Notwithstanding the

 

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foregoing, nothing in this Section 3 shall be construed to affect Executive’s right to receive COBRA continuation entirely at Executive’s own cost to the extent that Executive may continue to be entitled to COBRA continuation after Executive’s right to cost sharing under this Section 3(b) ceases; and

 

(c)                                  Notwithstanding anything to the contrary, including the terms of Section 4(b)(i) of the Employment Agreement, in consideration of the benefits being provided to Executive hereunder, Executive forever releases and waives any right to payments of any variable cash compensation (“VCCP”) under the executive variable cash compensation plan as approved by the Board of Directors of the Company for the fiscal year ending March 31, 2019 as applied to all executives of the Company.  For the avoidance of doubt, Executive shall earn no VCCP of any kind, including for the fiscal year ending March 31, 2019.

 

4.                                      Release of Claims.

 

(a)                                 General Release of Claims by Executive .  In consideration of his continued employment with the Company, his continued vesting of his equity awards, the payments noted above in Section 3, and other good and valuable consideration, the adequacy of which Executive acknowledges, Executive and his representatives, agents, spouse, estate, heirs, successors and assigns (the “Mr. Rajgopal Releasors”) hereby release each of the “Virtusa Released Parties” (as defined below in Section 4(f)) from any and all claims, causes of actions, and liabilities (whether accrued or unaccrued, whether or not now recognized, whether known or unknown, whether arising under federal, state, or local law), arising at any time up to and including the date that he executes this Agreement (hereafter collectively “Claims”), that the Mr. Rajgopal Releasors have, may have, or may claim to have against any of the Virtusa Released Parties.

 

This general release includes, without limitation, any and all Claims arising out of or in connection with:

 

(i) Executive’s employment, change in employment status, and/or termination of employment with Virtusa;

 

(ii) any federal, state or local law, constitution or regulation regarding either employment, employment benefits, or employment discrimination and/or retaliation including, without limitation, the National Labor Relations Act, as amended; Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. 2000e et  seq.; Sections 1981 through 1988 of Title 42 of the United States Code, as amended; the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. 1001 et  seq.; the Workers Adjustment and Retraining Notification Act, 29 U.S.C. Section 2101 et  seq.; the Immigration Reform and Control Act, as amended; the Americans with Disabilities Act of 1990, as amended; the Fair Labor Standards Act, as amended; the Occupational Safety and Health Act, as amended; the Family and Medical Leave Act of 1993 (“FMLA”), as amended; COBRA, as amended; the Age Discrimination in Employment Act of 1967 (“ADEA”), as amended; and laws relating to family and medical leave, retaliation, discrimination on the basis of race, color, religion, creed, sex, sex harassment, sexual orientation, gender identity, marital status, pregnancy, national origin, ancestry, handicap,

 

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disability, veteran’s status, alienage, blindness, present or past history of mental disorders or physical disability, candidacy for or activity in a general assembly or other public office, constitutionally protected acts of speech, whistleblower status, use of tobacco products outside course of employment, membership in any organization engaged in civil defense, veteran’s status, any military service, application for military service, or any other federal, state or local civil or human rights law or any other local, state or federal law, regulation or ordinance;

 

(iii) any Massachusetts state or local laws respecting employment, including but not limited to:  the Massachusetts Wage Payment Act, M.G.L. c. 149, § 148; the Massachusetts Fair Employment Practices Act, M.G.L. c. 151B; the Massachusetts Parental Leave Act, M.G.L. c. 149, § 105D; the Massachusetts Small Necessities Leave Act, M.G.L. c. 149, § 52D; the Massachusetts Earned Sick Time Law, M.G.L. c. 149, § 148C; the Massachusetts Domestic Violence Leave Act, M.G.L. c. 149, § 59E; the Massachusetts Civil Rights Act, M.G.L. c. 12, § 11H et seq.; the Massachusetts Equal Rights Act; M.G.L. c. 93, § 102 et seq.; the Massachusetts Equal Pay Act, M.G.L. c. 149, § 105A et seq.; the Massachusetts Law Against Sexual Harassment, M.G.L. c. 214, § 1C et seq.; and the Massachusetts Law Against Retaliation, M.G.L. c. 19C, § 11. et seq., as well as the laws of any other State in which he performed services;

 

(iv) breach of contract, including, without limitation, the terms of the Employment Agreement, or breach of the implied covenant of good faith and fair dealing;

 

(v) wrongful termination, intentional or negligent infliction of emotional distress, negligent misrepresentation, intentional misrepresentation, fraud, defamation, promissory estoppel, false light invasion of privacy, conspiracy, violation of public policy;

 

(vi) any Claim for any VCCP payment of any kind, equity awards, equity, stock or stock options, profits interest and any net cash distributions in Virtusa or the Virtusa Released Parties; and

 

(vii) any other tort, statutory or common law cause of action.

 

(b)                                 Waiver of Rights and Claims Under the Age Discrimination in Employment Act of 1967:  Because Executive will be 40 years of age or older as of the Resignation Date, he is hereby informed that he has or might have specific rights and/or claims under the Age Discrimination and Employment Act of 1967, as amended (the “ADEA”), and he agrees and understands that:

 

(i) In consideration for the payment and benefits described herein, which he is not otherwise entitled to receive, he specifically waives such rights and/or claims under the ADEA to the extent that such rights and/or claims arose prior to or on the date this Agreement was executed;

 

(ii) He understands that rights or claims under the ADEA which may arise after the date this Agreement is executed are not waived by him;

 

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(iii) He acknowledges that he has been advised of his right to consult with his counsel of choice prior to executing this Agreement, that he has twenty-one (21) days to review this Agreement and consider its terms before signing it, and he has not been subject to any undue or improper influence interfering with the exercise of his free will in deciding whether to consult with counsel;

 

(iv) He has carefully read and fully understands all of the provisions of this Agreement, he knowingly and voluntarily agrees to all of the terms set forth in this Agreement, and he acknowledges that in entering into this Agreement, he is not relying on any representation, promise or inducement made by the Company or its attorneys with the exception of those promises contained in this document; and

 

(v) He may revoke this Agreement for a period of seven (7) days following his execution hereof and all rights and obligations of both parties under this Agreement shall not become effective or enforceable until the seven (7) day revocation period has expired.  This Agreement shall become effective on the first business day following the revocation period (the “Effective Date”).

 

(c)  Interpretation/Class Action Waiver.  The foregoing release-of-claims provision set forth in Sections 4(a) and (b) shall be given the broadest possible interpretation permitted by law.  This release is intended by the Mr. Rajgopal Releasors to be all encompassing and a full and total release of any Claims, whether specifically enumerated herein or not, that they may have or have had against the Virtusa Released Parties up to the date Executive executes this Agreement.  The Mr. Rajgopal Releasors further agree to release and discharge the Virtusa Released Parties from any and all claims which might be made by any other person or organization on Executive’s behalf and they specifically waive any right to become, and promise not to become, a member of any class in a case in which a claim or claims against Virtusa are made involving any matters subject to release pursuant to Sections 4(a) and (b).

 

(d)  Exclusions from General Release.  Excluded from the General Release of Claims provision set forth in Sections 4(a) and (b) are any claims or rights that cannot be waived by law, including the right to file a charge with an administrative agency, including the EEOC, or participate in any agency investigation, hearing or proceeding.  Executive, however, is waiving his right to recover money in connection with such a charge or investigation.  Executive also is waiving his right to recover money in connection with a charge filed by any other individual or individuals, or by the EEOC, or any other federal or state agency; provided that nothing in this Agreement limits any right Executive may have to receive a whistleblower award or bounty for information provided to the Securities and Exchange Commission.  The Parties agree that the General Release of Claims provision set forth in Section 4(a) and (b) does not release claims for violation or breach of this Agreement.

 

(e)  Covenant Not to Sue.  A “covenant not to sue” is a legal term which means an agreement or promise not to file a lawsuit in court.  It is different from the General Release of Claims contained in Section 4(a).  Besides waiving and releasing the claims covered by Sections 4(a) and (b), Executive further agrees never to sue the Virtusa Released Parties in any forum based on the claims, laws or theories covered by the release language in Sections 4(a).  Notwithstanding this Covenant Not To Sue, Executive may bring a claim to enforce this

 

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Agreement.

 

(f)  Definition of Virtusa Released Parties.  As used in this Agreement, “Virtusa Released Parties” shall be interpreted as broadly as possible and shall mean (without limitation): (i) Virtusa Corporation; (ii) all of its past, present, and future subsidiaries, parents, affiliates, and divisions; and (iii) all of the past, present, and future officers, directors, managers, employees, shareholders, members, joint venturers, owners, attorneys, agents, insurers, employee benefit plans (including such plans’ administrators, trustees, fiduciaries, record-keepers, and insurers), and legal representatives (all both individually, in their capacity acting on Virtusa’s behalf and in their official capacities) of all of the aforementioned legal entities.

 

(g)  Accord and Satisfaction. The amounts set forth in this Agreement, coupled with all previous payments made to Executive by Virtusa, shall be complete and unconditional payment, settlement, accord and/or satisfaction with respect to all obligations and liabilities of the Virtusa Released Parties to the Mr. Rajgopal Releasors, including, without limitation, any and all amounts due under the Employment Agreement and any and all claims for wages, salary, draws, incentive pay, bonuses (including the VCCP), stock and stock options, any type of equity, net cash distributions, profits interest, commissions, severance pay, reimbursement of expenses, vacation pay, any and all other forms of compensation or benefits, attorney’s fees, or other costs or sums.

 

5.                                      Executive’s Additional Agreements, Representations and Obligations/Non-Disparagement.

 

(a)  Non-Disparagement;.  Executive agrees not to take any action or make any statement, written or oral, which (1) disparages or criticizes the Virtusa Released Parties, their officers, directors, investors or employees; (2) disparages or criticizes the Virtusa Released Parties’ business practices; or (3) which disrupts or impairs the Virtusa Released Parties’ normal operations, including actions that would (x) harm the Virtusa Released Parties’ reputation with their current and prospective clients, business partners, shareholders, or the public, or (y) interfere with existing contracts or employment relationships with current and prospective clients, business partners or the Virtusa Released Parties’ employees.  Executive agrees that these non-disparagement obligations apply to any communications he may initiate, participate in or have through “Social Media.”  “Social Media” includes, but is not limited to, social or professional networking websites, wikis, blogs, virtual worlds, personal websites, image-sharing websites, video-sharing websites, message boards, chat rooms, and discussion forums.  Virtusa agrees that its Board members and Seni Executives will not disparage the Executive. Notwithstanding the foregoing, nothing in this Agreement prohibits the Parties’ truthful testimony in any legal proceeding, participating in any government investigation or otherwise affect rights as set forth in Section 4(d) of this Agreement.

 

(b)  Agreed-Upon Message to Customers and Third Parties.  The Parties agree that, with respect to any communications with Company customers and employees about Executive’s transition and resignation from employment, both Parties shall state that, “Mr. Rajgopal has decided to resign from employment to pursue other opportunities,” or words to that effect.

 

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(c)  Non-disclosure and Non-competition Agreement.  Executive acknowledges the existence and continued validity of that certain Employee Noncompetition, Nondisclosure, Nonsolicitation and Developments Agreement dated April 11, 2005 (the “NDA”), the terms of which are incorporated by reference as material terms of this Agreement.  Executive agrees that his obligations under the NDA expressly survive the cessation of his employment and that he will fully abide by his obligations thereunder.

 

6.                                      Taxation of Payments and Benefits.  The Company shall undertake to make deductions, withholdings and tax reports with respect to payments and benefits under this Agreement to the extent that it reasonably and in good faith believes that it is required to make such deductions, withholdings and tax reports.  Payments under this Agreement shall be in amounts net of any such deductions or withholdings.  Except to the extent otherwise specified, nothing in this Agreement shall be construed to require the Company to make any payments to compensate Executive for any adverse tax effect associated with any payments or benefits or for any deduction or withholding from any payment or benefit.

 

7.                                      Indemnification.  Executive shall continue to have the right to be indemnified to the maximum extent permitted by the certificate of incorporation and/or by-laws of the Company in effect with respect to liability arising out of his services as an officer and director of the Company, and under the Company’s Directors & Officers Liability insurance policy.

 

8.                                      Integration.  This Agreement, including the NDA and the Equity Documents, constitutes the entire agreement between the parties relating to the subject matter herein and supersedes all prior agreements between the parties, including without limitation any term or provision in the Employment Agreement, except for the definition of “Cause,” which is incorporated by reference into this Agreement.  Executive acknowledges that this Agreement resolves all matters concerning his employment separation, including, without limitation, separation compensation and supersedes any similar, conflicting or prior terms in the Employment Agreement.  Executive shall not be entitled to any payments or benefits other than those provided for or referenced in this Agreement.

 

9.                                      Assignment; Successors and Assigns, etc.  The Company may assign its rights under this Agreement in the event that it shall effect a reorganization, consolidate with or merge into any other corporation, partnership, organization or other entity, or transfer all or substantially all of its properties or assets to any other corporation, partnership, organization or other entity.  This Agreement shall inure to the benefit of and be binding upon Executive and the Company and each party’s respective successors, executors, administrators, heirs and permitted assigns.

 

10.                               Enforceability.  If any portion or provision of this Agreement (including, without limitation, any portion or provision of any section of this Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.  In the event that Executive violates a term of this Agreement, and the Company prevails in enforcing this Agreement, Executive agrees that that Company is entitled to recover its costs,

 

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including reasonable attorney fees incurred in connection with any claim or cause of action arising under such default.  Executive agrees that any and all payments or benefits under this Agreement will automatically terminate upon any actual or threatened (in the Company’s determination and upon written notice to Executive) violation of this Agreement by Executive.

 

11.                               Waiver.  No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party.  The failure of either party to require the performance of any term or obligation of this Agreement, or the waiver by either party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

 

12.                               Notices.  Except for the notice of revocation referenced in the Release, any notices, requests, demands and other communications provided for by this Agreement shall be sufficient if in writing and delivered in person or sent by a nationally recognized overnight courier service or by registered or certified mail, postage prepaid, return receipt requested, to Executive at the last address he has filed in writing with the Company or, in the case of the Company, at its main offices, attention of the General Counsel.  Delivery by overnight courier service shall be effective on the first business day after mailing.  Delivery by registered or certified mail shall be effective three days after mailing.  Delivery in person shall be effective upon delivery.

 

13.                               Amendment.  This Agreement may be amended or modified only by a written instrument signed by Executive and by a duly authorized representative of the Company.

 

14.                               Governing Law.  This is a Massachusetts contract and shall be construed under and be governed in all respects by the laws of the Commonwealth of Massachusetts, without giving effect to the conflict of laws principles of such Commonwealth.  With respect to any disputes concerning federal law, such disputes shall be determined in accordance with the law as it would be interpreted and applied by the United States Court of Appeals for the First Circuit.

 

15.                               Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be taken to be an original.  Such counterparts shall together constitute one and the same document.

 

[The remainder of this page is intentionally blank.]

 

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IN WITNESS WHEREOF, the parties have executed this Agreement effective on the Effective Date.

 

	
 
    	
VIRTUSA CORPORATION
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/Ranjan Kalia
    
	
 
    	
Its:
    	
EVP & CFO
    
	
 
    	
 
    
	
 
    	
/s/ Raj Rajgopal
    
	
 
    	
RAJ RAJGOPAL
    

 

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EXHIBIT A

 

CERTIFICATE UPDATING RELEASE OF CLAIMS

 

I, Raj Rajgopal, hereby acknowledge and certify that I entered into a Separation and Release Agreement with Virtusa Corporation and its divisions, subsidiaries and affiliated companies (the “Company”), dated                 , 2018 (the “Agreement”).  Pursuant to that Agreement, I am required to execute this certificate, which updates the release of claims in Section 4 of the Agreement (this “Certificate”) as a condition of my receipt (and retention of) the consideration described in Section 3 of the Agreement.  I further understand that I may not sign this Certificate until on or after the Resignation Date (as defined in the Agreement), and that I must return it to the Company within seven (7) days after the Resignation Date.

 

I, therefore, agree as follows:

 

1.                                      A copy of this Certificate was attached to the Agreement as Exhibit A.  The Company has advised me to consult an attorney prior to signing this Certificate.

 

2.                                      In consideration of my receipt of the consideration described in Section 3 of the Agreement, I hereby extend the effective date of the release of claims in Section 4 of the Agreement to any and all Claims (as defined therein and as fully described therein) through the date I signed this Certificate.

 

3.                                      I have carefully read and fully understand all of the provisions of this Certificate, I knowingly and voluntarily agree to all of the terms set forth in this Certificate, and I acknowledge that in entering into this Certificate, I am not relying on any representation, promise or inducement made by the Company or its representatives with the exception of those promises contained in this Certificate and the Agreement.

 

4.                                      I agree that this Certificate is part of the Agreement.

 

	
 
    	
 
    
	
RAJ RAJGOPAL
    	
 
    
	
 
    	
 
    
	
Date:Exhibit 10.1

 

SHARE PURCHASE AGREEMENT 

 

THIS SHARE PURCHASE
AGREEMENT, dated as of November 30, 2018 (the “SPA”), is made by and among Jiangsu Rong Hai Electric
Power Fuel Co., Ltd., a PRC limited liability company (the “Rong Hai”), shareholders listed in the Exhibit
A, (each a “Shareholder,” and collectively the “Shareholders”) who owns 100% equity interests
of Rong Hai and TMSR Holding Company Limited., a Company incorporated under the laws of the State of Nevada (“TMSR”)
(individually a “Party” or collectively “Parties”).

 

RECITALS

 

NOW, THEREFORE,
for and in consideration of the foregoing premises, the mutual covenants and agreements contained herein, and for other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties, intending to be legally bound,
hereby agree as follows:

 

SECTION I

PURCHASE OF TMSR SHARES AND DELIVERY

 

1.1 The
Parties agree that TMSR shall issue 4,630,000 shares of TMSR’s common stock (“TMSR
Shares”) to the Shareholders with individual amount set forth in the
Exhibit A, in exchange for the Shareholder’s agreement to enter into, and cause Rong Hai to, enter into certain VIE
Agreements (“VIE Agreements”) with Shengrong Environmental Protection Technology (Wuhan) Co., Ltd. (“WFOE”),
through which the WFOE has the right to control, manage and operate Rong Hai in return for a service fee approximately equal to
100% of Rong Hai’s net income. The VIE Agreements consist of Consulting Services Agreement, Equity Pledge Agreement, Call
Option Agreement, Voting Rights Proxy Agreement and Operating Agreement. 

 

1.2  Upon
execution of this SPA, TMSR shall deliver to instruction letters to TMSR’s transfer agent to issue the TMSR Shares to the
Shareholders.

 

1.3  Upon
execution of this SPA, the Shareholders shall deliver to TMSR the VIE Agreements executed by Rong Hai and the Shareholders.

 

1.4 The
closing of the transactions contemplated by this SPA (the “Closing,”) shall occur on the date when this Agreement
and the VIE Agreements are executed and the TMSR Shares are issued.

 

SECTION II

SHAREHOLDERS’ REPRESENTATIONS AND

WARRANTIES.

 

The Shareholders and
Rong Hai hereby acknowledge, represent and warrant to, and agree with, TMSR and its affiliates as follows:

 

2.1 The
Shareholders are acquiring the TMSR Shares for their own account, not as a nominee or agent, for investment purposes only, and
not with a view to, or for, resale, distribution or fractionalization thereof in whole or in part and no other person has a direct
or indirect beneficial interest in such Common Stock or any of the components of the Common Stock, other than the Shareholders.
Further, none of the Shareholders has any contract, undertaking, agreement or arrangement with any person to sell, transfer or
grant participations to such person or to any third person, with respect to any of the TMSR Shares.

 

     

     

    

 

2.2 The
Shareholders and Rong Hai have full power and authority to enter into this SPA, the execution and delivery of this SPA have been
duly authorized, if applicable, and this SPA constitutes a valid and legally binding obligation of each Shareholder and Rong Hai.

 

2.3 The
Shareholders acknowledge their understanding that the offering and sale of the Common Stock is intended to be exempt from registration
under the Securities Act of 1933, as amended (the “Securities Act”) by virtue of Section 4(2) of the Securities Act
and the provisions of Regulation S promulgated thereunder (“Regulation S”). In furtherance thereof, the
Shareholders and Rong Hai represent and warrant and agree that they are not U.S. persons or affiliates of any U.S.
persons as defined in Rule 501(b) under the Securities Act.

 

2.4 The
Shareholders:

 

	 	(i)	Have been furnished with any and all documents which may have been made available upon request for a reasonable period of time prior to the date hereof;

 

	 	(ii)	Have been given the opportunity for a reasonable period of time prior to the date hereof to ask questions of, and receive answers from, the TMSR or its representatives concerning the terms and conditions of the offering of the Common Stock and other matters pertaining to this investment, and have been given the opportunity for a reasonable period of time prior to the date hereof to obtain such additional information necessary to verify the accuracy of the information provided in order for them to evaluate the merits and risks of purchase of the TMSR Shares to the extent the TMSR possesses such information or can acquire it without unreasonable effort or expense;

 

	 	(iii)	Have not been furnished with any oral representation or oral information in connection with the offering of the TMSR Shares which is not contained herein; and

 

	 	(iv)	Have determined that acquiring the TMSR Shares is a suitable investment for the Shareholders and Rong Hai and that at this time the Shareholders and Rong Hai could bear a complete loss of such investment.

 

2.5 The
Shareholders represent, warrant and agree that they will not sell or otherwise transfer the TMSR Shares without registration under
the Securities Act or an exemption therefrom and fully understands and agrees that they must bear the economic risk of their purchase
because, among other reasons, the TMSR Shares have not been registered under the Securities Act or under the securities laws of
any state and, therefore, cannot be resold, pledged, assigned or otherwise disposed of unless they are subsequently registered
under the Securities Act and under the applicable securities laws of such states or an exemption from such registration is available. In
particular, the Shareholders and Rong Hai are aware that the TMSR Shares are “restricted securities,” as such term
is defined in Rule 144 promulgated under the Securities Act (“Rule 144”), and they may not be sold pursuant to Rule
144 unless all of the conditions of Rule 144 are met. The Shareholders and Rong Hai also understand that TMSR is under
no obligation to register the TMSR Shares on their behalf or to assist them in complying with any exemption from registration under
the Securities Act or applicable state securities laws. The Shareholders and Rong Hai further understand that sales
or transfers of the TMSR Shares are further restricted by state securities laws and the provisions of this SPA.

 

2.6 No
representations or warranties have been made to the Shareholders by TMSR, or any officer, employee, agent, affiliate or subsidiary
of TMSR, other than the representations of TMSR contained herein, and in acquiring the TMSR Shares the Shareholder are
not relying upon any representations other than those contained herein.

 

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2.7 Any
information which the Shareholders have heretofore furnished to TMSR with respect to their financial position and business experience
is correct and complete as of the date of this SPA and if there should be any material change in such information they will immediately
furnish such revised or corrected information to TMSR.

 

2.8 The
Shareholders understand and agree that the certificates for the TMSR Shares shall bear the following legend until (i) such securities
shall have been registered under the Securities Act and effectively been disposed of in accordance with a registration statement
that has been declared effective; or (ii) in the opinion of counsel for TMSR such securities may be sold without registration under
the Securities Act as well as any applicable “Blue Sky” or state securities laws:

 

“THESE SECURITIES HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED,
ASSIGNED OR TRANSFERRED EXCEPT (i) PURSUANT TO A REGISTRATION STATEMENT UNDER THE SECURITIES ACT WHICH HAS BECOME EFFECTIVE AND
IS CURRENT WITH RESPECT TO THESE SECURITIES, OR (ii) PURSUANT TO A SPECIFIC EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
BUT ONLY UPON A HOLDER HEREOF FIRST HAVING OBTAINED THE WRITTEN OPINION OF COUNSEL TO THE CORPORATION, OR OTHER COUNSEL REASONABLY
ACCEPTABLE TO THE CORPORATION, THAT THE PROPOSED DISPOSITION IS CONSISTENT WITH ALL APPLICABLE PROVISIONS OF THE SECURITIES ACT
AS WELL AS ANY APPLICABLE “BLUE SKY” OR SIMILAR SECURITIES LAW.”

 

2.9 The
Shareholder understand that an investment in the TMSR Shares is a speculative investment which involves a high degree of risk and
the potential loss of their entire investment.

 

SECTION III

 TMSR REPRESENTATIONS AND WARRANTIES.

 

TMSR hereby acknowledges, represents and
warrants to, and agrees with the Shareholders and Rong Hai (which representations and warranties will be true and correct as of
the date of the Closing as if they were made on the date of Closing) as follows:

 

3.1 TMSR
has been duly organized, is validly existing and is in good standing under the laws of the State of Nevada. TMSR has full corporate
power and authority to enter into this SPA. This SPA, has been duly and validly authorized, executed and delivered by TMSR and
are valid and binding obligations of TMSR, enforceable against TMSR in accordance with their terms, except as such enforcement
may be limited by the United States Bankruptcy Code and laws effecting creditors rights, generally.

 

3.2 Subject
to the performance by the Shareholders and Rong Hai of their respective obligations under this SPA and the accuracy of the representations
and warranties of the Shareholders and Rong Hai, the offering and sale of the TMSR Shares will be exempt from the registration
requirements of the Securities Act.

 

3.3 The
execution and delivery by TMSR of, and the performance by TMSR of its obligations hereunder in accordance with its terms will not
contravene any provision of the charter documents of TMSR.

 

    3 

     

    

 

3.4 The
TMSR Shares have been duly authorized and, when issued and delivered as provided by this SPA, will be validly issued and fully
paid and non-assessable, and the TMSR Shares are not subject to any preemptive or similar rights.

 

3.5 Except
as otherwise disclosed in its SEC filings, TMSR is not in violation of its charter or bylaws and is not in material
default in the performance of any bond, debenture, note or any other evidence of indebtedness or any indenture, mortgage, deed
of trust, license, contract, lease or other instrument to which TMSR is a party or by which it is bound, or to which
any of the property or assets of TMSR is subject, except such as have been waived or which would not, singly or in the
aggregate, prevent TMSR from discharging its obligations under this SPA.

 

SECTION IV

GENERAL PROVISIONS

 

4.1 Survival. All
representations, warranties, covenants, and obligations in this SPA shall survive until the expiration of the applicable statute
of limitation with respect to the underlying claim to which such representation, warranty, covenant, or obligation relates.

 

4.2 Written
Changes. Neither this SPA nor any provision hereof may be changed, waived, discharged or terminated orally,
except by a statement in writing signed by the Party against which enforcement of the change, waiver, discharge or termination
is sought.

 

4.3 Delays
or Omissions. Except as expressly provided herein, no delay or omission to exercise any right, power or remedy
accruing to any party under this SPA shall impair any such right, power or remedy of such party nor shall it be construed to be
a waiver of any such breach or default, or an acquiescence thereto, or of a similar breach or default thereafter occurring; nor
shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any
waiver, permit, consent or approval of any kind or character on the part of any party hereto of any breach or default under this
SPA, or any waiver on the part of any party of any provisions or conditions of this SPA, must be in writing and shall be effective
only to the extent specifically set forth in such writing.

 

4.4 Entire
Agreement. This SPA constitutes the entire understanding and agreement of the Parties with respect to the subject
matter hereof and supersedes all prior and contemporaneous agreements or understandings, inducements or conditions, express or
implied, written or oral, between the Parties with respect hereto. The express terms hereof control and supersede any
course of performance or usage of the trade inconsistent with any of the terms hereof.

 

4.5 Severability. Should
any one or more of the provisions of this SPA or of any agreement entered into pursuant to this SPA be determined to be illegal
or unenforceable, all other provisions of this SPA and of each other agreement entered into pursuant to this SPA, shall be given
effect separately from the provision or provisions determined to be illegal or unenforceable and shall not be affected thereby. The
Parties further agree to replace such void or unenforceable provision of this SPA with a valid and enforceable provision which
will achieve, to the extent possible, the economic, business and other purposes of the void or unenforceable provision.

 

4.6 Successors
and Assigns. The terms and conditions of this SPA shall inure to the benefit of and be binding upon and be enforceable
by the successors and assigns of the Parties.

 

    4 

     

    

 

4.7 Governing
Law. The validity, terms, performance and enforcement of this SPA shall be governed and construed by the provisions
hereof and in accordance with the laws of the State of Nevada applicable to agreements that are negotiated, executed, delivered
and performed in the State of Nevada.

 

4.8 Counterparts. This
SPA may be executed concurrently 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 and shall become effective when counterparts have been signed by each Party and delivered
to the other Party.

 

4.9 Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the purposes of this SPA and the consummation of the transactions contemplated
hereby.

 

4.10 Third
Party Beneficiaries. Nothing expressed or implied in this SPA is intended, or shall be construed, to confer
upon or give any person other than the Parties any rights or remedies under or by reason of this SPA.

 

4.11 Headings. The
headings of this SPA are for convenience of reference and shall not form part of, or affect the interpretation of, this SPA.

 

[SIGNATURE PAGES TO FOLLOW]

 

    5 

     

    

 

IN WITNESS WHEREOF,
the parties have executed and delivered this Share Purchase Agreement as of the date first written above.

 

	THE SHAREHOLDERS 	 
	 	 
	/s/ Jirong
    Huang	 
	Jirong Huang	 
	 	 
	/s/ Qihai
    Wang	 
	Qihai Wang	 

 

	RONG HAI	 
	 	 	 
	Jiangsu Rong Hai Electric Power Fuel Co., Ltd.	 
	 	 	 
	/s/ Jirong Huang	 
	Name:	Jirong Huang	 
	Title:	Authorized Representative	 
	 	 	 
	TMSR	 
	 	 	 
	TMSR Holding Company Limited	 
	 	 	 
	/s/ Jiazhen Li	 
	Name:	Jiazhen Li	 
	Title:	CEO	 

 

    6

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