Document:

UA-12.31.2013-EX 10.18*

Exhibit 10.18

 

CHANGE IN CONTROL SEVERANCE AGREEMENT
 
This CHANGE IN CONTROL SEVERANCE AGREEMENT (this “Agreement”) is made as of the 1 day of January, 2014, between Under Armour, Inc., a corporation organized under the laws of the State of Maryland (together with its affiliates, the “Company”), and Karl-Heinz Maurath (“Executive”).
 
WITNESSETH THAT:
 
WHEREAS, should Under Armour, Inc. or shareholders of Under Armour, Inc. receive any proposal from a third person regarding a possible Change in Control, the Board of Directors of Under Armour, Inc. (the “Board”) believes it is important that the Company be able to rely upon the Executive to continue in his position until after such Change in Control and that Under Armour, Inc. be able to receive and rely upon the Executive’s advice, if requested, as to the best interest of Under Armour, Inc. and its shareholders in connection with any such Change in Control, without concern that the Executive might be distracted or his advice affected by the personal uncertainties and risks created by such a Change in Control.
 
NOW THEREFORE, in order to provide an incentive to the Executive for the continued dedication of Executive and the availability of his advice and counsel notwithstanding the possibility of a Change in Control, and to encourage Executive to remain in the employ of the Company, and for other good and valuable consideration, the Company and Executive hereby agree as follows:
 
1.     Definitions.
     
(i)    “Accrued Obligations” shall mean the sum of the following: (a) the full base salary earned by the Executive through the Termination Date and unpaid as of the Termination Date, calculated at the highest rate of base salary in effect at any time during the twelve (12) months immediately preceding the Termination Date; (b) the amount of any base salary attributable to vacation earned by the Executive but not taken before the Termination Date; (c) any Bonus accrued to the Executive with respect to the calendar year preceding the termination of employment and unpaid as of the Termination Date; (d) a pro-rata Bonus for the year in which the Change in Control occurs, equal to the Bonus times a fraction, the numerator of which is the number of days during the calendar year preceding the Termination Date and the denominator of which is 365; and (e) all other amounts earned by the Executive and unpaid as of the Termination Date.
 
        (ii)    “Bonus” shall mean the greater of: (a) the annual average of the Executive’s bonus paid to the Executive with respect to the two (2) calendar years prior to 

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Executive’s termination of employment with the Company or (b) the Executive’s target bonus for the year of such termination of employment.
  
(iii)    “Cause” shall mean the occurrence of any of the following: (a) the Executive’s material misconduct or neglect in the performance of his duties; (b) the Executive’s conviction for, or plea of nolo contendere to, any felony, or a misdemeanor (excluding a petty misdemeanor) involving dishonesty, fraud, moral turpitude or immoral conduct; or any crime of sufficient import to potentially discredit or adversely affect the Company’s ability to conduct its business in the normal course; (c) the Executive’s use of illegal drugs as contemplated by Article 213(A)(13) of the Panamanian Labor Code; (d) the Executive's material breach of the Company's written Code of Conduct, as in effect from time to time; (e) the Executive's commission of any act that results in severe harm to the Company excluding any act taken by the Executive in good faith that he reasonably believed was in the best interests of the Company; (f) the Executive, because of illness or incapacity, is unable, with or without reasonable accommodations, to perform or is prevented from performing the essential functions of Executive’s duties for more than one year; or (g) the Executive’s material breach of this Agreement, including, but not limited to, a material breach of the Executive’s Employment Agreement attached hereto as Attachment A.
 
(iv)    “Change in Control” shall mean the occurrence of any of the following:
 
a.    Any ‘person’ (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becomes the ‘beneficial owner’ (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of Under Armour, Inc. representing fifty percent (50%) or more of the total voting power represented by Under Armour, Inc.’s then-outstanding voting securities, provided, however that a Change in Control shall not be deemed to occur if an employee benefit plan (or a trust forming a part thereof) maintained by Under Armour, Inc., and/or Kevin Plank and/or his immediate family members, directly or indirectly, become the beneficial owner, of more than fifty percent (50%) of the then-outstanding voting securities of Under Armour, Inc. after such acquisition;
 
b.   A change in the composition of the Board occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors.  ‘Incumbent Directors’ shall mean directors who either (A) are directors of Under Armour, Inc. as of the date hereof, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to Under Armour, Inc.);
 c.  The consummation of a merger or consolidation of Under Armour, Inc. with any other corporation, other than a merger or consolidation which would result in (a) the voting securities of Under Armour, Inc. outstanding immediately prior thereto continuing to represent (either 

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by remaining outstanding or being converted into voting securities of the surviving entity) at least fifty percent (50%) of the total voting power represented by the voting securities of Under Armour, Inc. or such surviving entity outstanding immediately after such merger or consolidation in substantially the same proportion as prior to such merger or consolidation; or (b) the directors of Under Armour, Inc. immediately prior thereto continuing to represent at least fifty percent (50%) of the directors of Under Armour, Inc. or such surviving entity immediately after such merger or consolidation; or
 
		
	d.
	The consummation of the sale or disposition by Under Armour, Inc. of all or substantially all of Under Armour, Inc.’s assets.

 
(v)     “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.
 
(vi)    “Contract Period” shall mean the period staring on the date hereof and ending on the second anniversary of the date hereof.  The Company, in its sole discretion, shall have the right to extend the Contract Period.
 
 
(vii)    “Good Reason,” shall mean the occurrence of any of the following events: (a) a diminishment in the scope of the Executive’s duties or responsibilities with the Company; (b) a reduction in the Executive’s current base salary, bonus opportunity or a material reduction in the aggregate benefits or perquisites; (c) a requirement that the Executive relocate more than fifty (50) miles from his primary place of business as of the date of a Change in Control, or a significant increase in required travel as part of the Executive’s duties and responsibilities with the Company; (d) a failure by any successor to the Company to assume this Agreement pursuant to Section 5(a) hereof; or (e) a material breach by the Company of any of the terms of this Agreement.

 (viii)    “Protection Period” shall mean the twelve (12) month period following a Change in Control.
 
(ix)    “Termination Date” shall mean the effective date as provided hereunder of the termination of Executive’s Employment.
 
(x)    “Without Cause” shall mean the termination of the Executive’s employment by the Company other than for Cause or death.
 
2.       Application of this Agreement.  This Agreement shall apply if and only if: (a) the Executive’s employment terminates during the Protection Period and (b) the Change in Control occurs during the Contract Period.  This Agreement shall not apply to any termination of the Executive’s employment other than what is described in the preceding sentence. Notwithstanding the foregoing, if three (3) months prior to the date on which a Change in Control occurs, the Executive’s employment with the Company is terminated by the Company other than by reason of the Executive’s death or circumstances that would constitute Cause or the terms and conditions of the Executive’s employment are adversely changed in a manner which 

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would constitute grounds for a termination of employment by the Executive for Good Reason, and it is reasonably demonstrated that such termination of employment or adverse change (i) was at the request of a third party who has taken steps reasonably calculated to effect the Change in Control, or (ii) otherwise arose in connection with or in anticipation of the Change in Control, then for all purposes of this Agreement such termination of employment shall be deemed to have occurred during the Protection Period and shall be considered either termination of the Executive’s employment Without Cause by the Company or termination of the Executive’s employment by the Executive for Good Reason, as the case may be.
 
3.      Termination of Employment of Executive. The Executive’s employment may be terminated by following the procedures specified in this Section 3.
 
(i)    Cause. The Executive may not be terminated for Cause unless and until a notice of intent to terminate the Executive’s employment for Cause, specifying the particulars of the conduct of the Executive forming the basis for such termination, is given to the Executive by the Company and, subsequently, a majority of the Board finds, after reasonable notice to the Executive (but in no event less than fifteen (15) days prior notice) and an opportunity for the Executive and his counsel to be heard by the Board, that termination of the Executive’s employment for Cause is justified.  Termination of the Executive’s employment for Cause shall become effective after such finding has been made by the Board and five (5) business days after the Board gives to the Executive notice thereof, specifying in detail the particulars of the conduct of the Executive found by the Board to justify termination for Cause. It shall not constitute Good Reason to the Executive to the extent the Executive is relieved of any duties and responsibilities during the period the Board is considering whether such termination for Cause is justified.
 
 (ii)    Termination Without Cause. The Company shall have the right by notice to the Executive of the Company’s intention to terminate Executive’s employment Without Cause.  Termination of Executive’s employment by the Company Without Cause shall become effective immediately upon the receipt by the Executive of such notice.
 
(iii)    Voluntary Termination by the Executive. The Executive may terminate his employment with the Company by giving a notice of voluntary termination to the Company, and if such termination is for Good Reason, such notice shall set forth in reasonable detail the acts and circumstances claimed by the Executive to constitute Good Reason.  Termination of the Executive’s employment by the Executive without Good Reason shall be effective five (5) business days after the Executive gives notice thereof to the Company. The Company shall have twenty (20) days after receipt of such notice from the Executive of claimed Good Reason to cure any Good Reason. If the Company is unable to cure the Good Reason during such cure period, termination of the Executive’s employment by the Executive for Good Reason shall be effective five (5) business days after the expiration of such cure period.
  
(iv)     Death.  Termination of the Executive’s employment for death shall be effective on the date of the Executive’s death.
 
4.      Benefits Upon Termination of Employment.
 

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(i)    Termination Without Cause or by the Executive for Good Reason. Upon the termination of the employment of Executive Without Cause by the Company or by the Executive for Good Reason, the Company shall pay or provide to the Executive:
 
(a)     a lump sum payment equal to the sum of the following:
 
1.    the Accrued Obligations; and
 
2.    an amount equal to the sum of the annual base salary of the Executive at the highest rate in effect during the Protection Period and the Bonus.
 
The payment described in this Section 4(i)(a)(1) shall be made by the Company not later than the earlier of the date required by applicable law or five (5) days following the Termination Date.  The payment described in Section 4(i)(a)(2) shall be paid in accordance with Section 4(vi).  Executive shall not be required to mitigate the amount of the payment provided for in this Section 4(i)(a) by seeking other employment or otherwise.  The amount of the payment provided for in this Section 4(i)(a) shall not be reduced by any compensation or other amounts paid to or earned by Executive as the result of employment with another employer after the date on which his employment with the Company terminates or otherwise.
 
(b)    the continuance of the Executive’s life, medical, dental, prescription drug and long and short-term disability plans, programs or arrangements, whether group or individual, of the Company in which the Executive was entitled to participate at any time during the twelve (12) month period prior to the Termination Date until the earliest to occur of (1) one (1) year after the Termination Date; (2) the Executive’s death (provided that compensation and benefits payable to his beneficiaries shall not terminate upon his death); or (3) with respect to any particular plan, program or arrangement, the date the Executive is afforded a comparable benefit at a comparable cost to the Executive by a subsequent employer.
 
 (ii)    Cobra Continuation Coverage. Upon the expiration of the provision of benefits in Section 4(i)(b), the Executive and his dependents shall be entitled to exercise such rights as they may have under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”).
 
(iii)    Death.  Upon a termination of the Executive’s employment on account of the Executive’s death, the Company shall pay to his estate or beneficiary, the Accrued Obligations within five (5) days of the Termination Date and the Company shall provide to his estate or beneficiary, such benefits that the Company provides in the event of an employee’s death.
 
(iv)    Cause, Voluntary Termination by the Executive. Upon the termination of the Executive’s employment by the Company for Cause or by the Executive without Good 

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Reason, the Company shall pay to the Executive the Accrued Obligations within five (5) days of the Termination Date.
 
(v)    Effect of Stock Options and Other Equity Awards.  The terms and conditions of the Executive’s award agreements or employment agreement (as applicable to such Executive) shall govern the effect of termination of the Executive’s employment on equity awards granted by the Company and held by the Executive as of the Termination Date.

 (vi)    Conditions to Receiving Benefits. The benefits described in Sections 4(i)(a)(2) and 4(i)(b) shall be subject to the Executive’s compliance with the confidentiality, non-competition, and non-solicitation provisions of the Executive’s Employment Agreement attached hereto as Attachment A, and the benefits described in Sections 4(i)(a)(2) and 4(i)(b) will be paid within the sixty (60) day period following the Termination Date provided the Executive executes the release attached hereto as Attachment B, and such release becomes effective and irrevocable within such sixty (60) day period and provided, further, that if such sixty (60) day period begins in one calendar year and ends in a second calendar year, the payment will be made in the second calendar year.
 
(vii)    No Further Payments due to Executive. Except as provided in this Section 4, the Company shall have no obligation to make any other payment, in the nature of severance or termination pay.
 
(viii)    Exception to Benefit Entitlements. The Executive shall not receive the payments and benefits under this Agreement if the Executive has executed an individually negotiated employment contract, agreement or offer letter with the Company relating to severance benefits that is in effect on the Termination Date, unless the Executive waives any such severance benefits under such contract, agreement or letter.
 
(viii)    Retirement Payments.  No amounts paid pursuant to this Agreement will constitute compensation for any purpose under any retirement plan or other employee benefit plan, program, arrangement or agreement of the Company or any of its affiliates, unless such plan, program, arrangement or agreement specifically so provides.
 
5.    Successors; Binding Agreement.
 
(a)    This Agreement shall be binding upon any successor (whether direct or indirect, by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all of the business and/or assets of Under Armour, Inc.  Additionally, Under Armour, Inc. shall require any such successor expressly to agree to assume and to assume of the obligations of the Company under this Agreement upon or prior to such succession taking place. A copy of such assumption and agreement shall be delivered to the Executive promptly after its execution by the successor.
 
(b)    This Agreement is personal to the Executive and the Executive may not assign or transfer any part of his rights or duties hereunder, or any payments due to the Executive hereunder, to any other person, except that this Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives, executors, administrators, heirs, distributees, devisees, legatees or beneficiaries.  No payment pursuant to any will or the laws of 

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descent and distribution shall be made hereunder unless the Company shall have been furnished with a copy of such will and/or such other evidence as the Board may deem necessary to establish the validity of the payment.
 
6.     Modification; Waiver.  No provisions of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in a writing signed by Executive and by an officer of the Company thereunto expressly authorized by the Board.  Waiver by any party of any breach of or failure to comply with any provision of this Agreement by the other party shall not be construed as, or constitute, a continuing waiver of such provision, or a waiver of any other breach of, or failure to comply with, any other provision of this Agreement.

7.     Notice.  All notices, requests, demands and other communications required or permitted to be given by either party to the other party to this Agreement (including, without limitation, any notice of termination of employment and any notice of an intention to arbitrate) shall be in writing and shall be deemed to have been duly given when delivered personally or received by certified or registered mail, return receipt requested, postage prepaid, at the address of the other party, as follows:

	
				
	 
	If to the Company, to:
	 
	If to the Executive, to:

	 
	 
	 
	 

	 
	Under Armour, Inc.
	 
	 

	 
	Attn: Vice President,
	 
	 

	 
	Human Resources
	 
	 

	 
	1020 Hull Street
	 
	 

	 
	Baltimore, Maryland  21230
	 
	 

	 
	 
	 
	 

	 
	With a copy to:
	 
	With a copy to:

	 
	Under Armour, Inc.
	 
	 

	 
	Attn:  Legal Department
	 
	 

	 
	1020 Hull Street
	 
	 

	 
	Baltimore, Maryland  21230
	 
	 

 
Either party hereto may change its address for purposes of this Section 7 by giving fifteen (15) days’ prior notice to the other party hereto.
 
8.    Severability.  If any term or provision of this Agreement or the application thereof to any person or circumstance shall to any extent be invalid or unenforceable, the remainder of this Agreement or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

 9.    Headings.  The headings in this Agreement are inserted for convenience of reference only and shall not be a part of or control or affect the meaning of this Agreement.
 
10.    Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed an original. 

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11.    Governing Law.  This Agreement has been executed and delivered in Panama and shall in all respects be governed by, and construed and enforced in accordance with, the laws of Panama without reference to its principles of conflicts of law.
          12.    Certain Withholdings.  The Company shall withhold from any amounts payable to Executive hereunder all federal, state, city and other taxes and withholdings that the Company determines are required to be withheld pursuant to any applicable law or regulation.
 
13.    Entire Agreement.  This Agreement supersedes any and all other oral or written agreements heretofore made relating to amounts payable pursuant to a change in control and constitutes the entire agreement relating to such change in control.  Any existing employment agreement is hereby superseded only with regard to amounts payable pursuant to a change in control.

14.    Code Section 409A.  To the extent that the right to any payment under this Agreement provides for deferred compensation within the meaning of Section 409A of the Code that is not exempt from Code Section 409A as involuntary separation pay or a short-term deferral (or otherwise), a termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for any payment or benefits upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision, references to a “termination,” “termination of employment,” or like terms shall mean “separation from service.”  In addition, notwithstanding any provision to the contrary in this agreement, if Executive is deemed on the date of Executive’s “separation from service” (within the meaning of Code Section 409A) to be a “specified employee” (within the meaning of Code Section 409A), then with regard to any payment under this Agreement that is required to be delayed pursuant to Code Section 409A(a)(2)(B), such payment shall not be made prior to the later of (1) June 30, 2012, or (2) the earlier of (a) the expiration of the six (6) month period measured from the date of Executive’s “separation from service” and (b) the date of Executive’s death.  Each payment under this Agreement shall be treated as a separate payment for purposes of Code Section 409A.  In addition, to the extent that any reimbursement or in-kind benefit under this Agreement or under any other reimbursement or in-kind benefit plan or arrangement in which Executive participates during the term of Executive’s employment under this Agreement or thereafter provides for a “deferral of compensation” within the meaning of Section 409A of the Code, (i) the amount eligible for reimbursement or in-kind benefit in one calendar year may not affect the amount eligible for reimbursement or in-kind benefit in any other calendar year (except that a plan providing medical or health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid), (ii) the right to reimbursement or an in-kind benefit is not subject to liquidation or exchange for another benefit, and (iii) subject to any shorter time periods provided herein, any such reimbursement of an expense must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred.  
 

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
 
UNDER ARMOUR, INC.

	
			
	/s/ John Stanton
	 
	/s/ Karl-Heinz Maurath

	By: John Stanton
	 
	By: Karl-Heinz Maurath

	 
	 
	 

	SVP, General Counsel & Corporate Secretary
	 
	President, International

	Title
	 
	Title

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 ATTACHMENT A

EMPLOYEE CONFIDENTIALITY, NON-COMPETITION, AND
NON-SOLICITATION AGREEMENT 

[The Form of Attachment A, the Employee Confidentiality, Non-Competition, and Non-Solicitation Agreement by and between Mr. Maurath and the Company, has been separately filed with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, as Exhibit 10.14]

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ATTACHMENT B

RELEASE AGREEMENT
 
I understand and agree completely to the terms set forth in the Under Armour, Inc Change in Control Severance Agreement (the “Agreement”).
 
I understand that this Release, together with the Agreement, constitutes the complete, final and exclusive embodiment of the entire agreement between the Company and me with regard to the subject matter hereof.  I am not relying on any promise or representation by the Company that is not expressly stated therein.  Certain capitalized terms used in this Release are defined in the Agreement.
 
I hereby confirm my obligations under the Company’s Employee Confidentiality, Non-Competition and Non-Solicitation Agreement.
 
Except as otherwise set forth in this Release, I hereby generally and completely release the Company and its parents, subsidiaries, successors, predecessors and affiliates, and its and their partners, members, directors, officers, employees, stockholders, shareholders, agents, attorneys, predecessors, insurers, affiliates and assigns, from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring at any time prior to and including the date I sign this Release.  This general release includes, but is not limited to:  (a) all claims arising out of or in any way related to my employment with the Company or the termination of that employment; (b) all claims related to my compensation or benefits, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company (other than compensation and benefits accrued before any termination of employment or any rights you may have under stock option grants); (c) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (d) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (e) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990 (as amended), the federal Age Discrimination in Employment Act (as amended), and the federal Employee Retirement Income Security Act of 1974 (as amended).
 
I understand that I may consider whether to agree to the terms contained herein for a period of twenty-one days after the date hereof.  Accordingly, I will sign and return the acknowledgment copy of this Release to acknowledge my understanding of and agreement with the foregoing.  Prior to my signing this Release, I was advised to consult with an attorney.
 
This Release will become effective, enforceable and irrevocable seven days after the date on which I sign it. During the seven-day period prior to this date, I may revoke this Release to accept the terms hereof by indicating in writing to the Company my intention to revoke.  I 

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understand that if I exercise my right to revoke hereunder, I will forfeit my right to receive any of the special benefits offered to me under the Agreement, and to the extent such payments have already been made, I agree that I will immediately reimburse the Company for the amounts of such payment.
 
	
			
	 
	 
	 

	By:
	 
	 

	 
	 
	 

	Date:
	 
	 

2fnrg_ex101.htm

Exhibit 10.1

 

	
股权转让协议

	
EQUITY TRANSFER AGREEMENT

 

 

	
由

	
By and between

	
桑西能源香港有限公司

	
SunSi Energies Hong Kong Limited

	
(作为甲方)

	
(As the Party A)

	
与

	
And

	
刘东强

	
Liu Dongqiang

	
(作为乙方)

	
(As the Party B)

	
关于

	
With regard to

 

	
出售与购买文登市和谐硅业有限公司(公司)60%的股权

	
For the sale and purchase of the 60% equity interest in Wendeng He Xie Silicon Co., Ltd. (“the Company”)

  

  

  

	
本股权转让协议(本协议)由下列各方于2014年02月19日于威海签订:

This EQUITY AGREEMENT (this Agreement) is entered into in Weihai on February 19, 2014 by and between:

桑西能源香港有限公司(SunSi Energies Hong Kong Limited),一家根据香港法律合法成立并有效存续的有限责任公司,其法定地址为香港中环康乐广场1号怡和大厦401室(甲方)。

SunSi Energies Hong Kong Limited, a private company with limited liability duly incorporated and existing under the Laws of Hong Kong with its legal address at 401 Jardine House, 1 Connaught Place, Central, Hong Kong (the Party A).

和

and

刘东强,中华人民共和国公民,身份证号码为370632196507035654,住址为中国山东省文登市米山路甲71-5号1单元602室(乙方);

Liu Dongqiang, a citizen of the People’s Republic of China, whose ID Card number is 370632196507035654 and residential address is at Room 602 Unit 1 No. Jia 71-5, Mishan Road, Wendeng City, Shandong Province, PRC (the Party B);

甲方和乙方单独称为一方,合称为双方。

Party A and Party B may be individually referred to as a Party, and collectively referred to as the Parties.

	
鉴于

	
WHEREAS

	
A.  

	
文登市和谐硅业有限公司(公司)于2011年3月6日根据中华人民共和国(中国)法律合法成立,其法定注册地址为中国山东省文登市米山镇北郑格村,公司注册资本为人民币500万元。注册资本已缴足。

Wendeng He Xie Silicon Co., Ltd. (the Company) was established on 6 March 2011 under the Laws of the People’s Republic of China (PRC) with its registered address at North Zhengge Village, Mishan Town, Wendeng City, Shandong Province, PRC.

	
B.  

	
甲方已经于2010年11月22日向乙方收购了公司60%的股权,对价为SunSi Energies Inc.的2,924,194股受限制的普通股加445,075美元。

Party A acquired from Party B a 60% equity interest in the Company on November 22nd of 2010 for 2,924,194 restricted common shares of SunSi Energies Inc. plus $445,075 USD.

  

1

  

 

	
C.  

	
甲方希望出售并转让该等60%的股权且乙方希望依据本协议自甲方处购买并受让该等60%的股权

Party A wishes to sell and transfer this 60% equity interest and Party B wishes to buy and acquire in accordance with this Agreement said 60% equity interest  from Party A.

	
1.  

	
定义及诠释

DEFINITION AND INTERPRETATION

 

除非另有说明,以下术语在本协议中使用时有如下含义:

Unless otherwise specified, the following terms shall have the following meanings when used herein:

	
协议

Agreement

 

	
指本股权转让协议

refers to this Equity Transfer Agreement.

 

	
公司

Company

	
指文登市和谐硅业有限公司。

refers to Wendeng He Xie Silicon Co., Ltd.

 

	
中国

PRC

	
指中华人民共和国。

refers to the People’s Republic of China.

 

	
股权转让

Equity Transfer

	
指依据本协议规定由甲方向乙方就60%的目标股权的转让

refers to the transfer of the 60% Target Equity from Party A To Party B as contemplated under this Agreement

	  	  
	
目标股权

Target Equity

	
指甲方持有的公司60%的股权。

refers to the 60% equity interests in the Company, which is currently held by Party A.

	  	  

 

  

2

  

 

	
2.  

	
股权转让

EQUITY TRANSFER

	
2.1.  

	
根据本协议的条款和条件,甲方同意向乙方出售和转让目标股权,乙方同意向甲方受让没有任何权利负担的目标股权,及附着于或产生于该股权的一切权益、资格、利益和收益。

Subject to the terms and conditions of this Agreement, Party A agrees to sell and transfer the Target Equity to Party B, and Party B agrees to acquire from Party A the Target Equity free of any encumbrances and with all rights titles, interest and benefits.

	
2.2.  

	
乙方承诺向甲方交付,适当背书的SUNSI ENERGIES INC.的2,924,194股(反向分割前,证书1131号记载之1,349,628股,以及证书1138号记载之1,574,566股)受限制的普通股且乙方同时也承认并同意,甲方将于签署本协议后注销该等股份并将其收入SUNSi Energies Inc.的股份库存。

Party B commits to delivers to Party A, 2,924,194 restricted common shares of SunSi Energies Inc. duly endorsed (pre-reverse split, certificates #1131 for 1,349,628 shares, and certificate #1138 for 1,574,566 shares) and Party B also acknowledges and agrees that Party A will cancel those shares, and will add them back to the stock treasury of SunSi Energies Inc., upon signature of this agreement.

	
3.  

	
购买价款及交割

PURCHASE PRICE AND CLOSING

	
3.1.  

	
就公司60%的目标股权的总购买价款为由乙方所持有并将转让给甲方的SunSi Energies Inc.的2,924,194股(反向分割前)受限制的普通股。甲方同时也向乙方支付50,000美元。 本协议有效的交割日为2013年12月31日。交易在满足下列条件时应被视为完成并已交割:

The total Purchase Price for the target equity interests of 60% in the Company will be 2,924,194 (pre-reverse split) restricted common shares of SunSi Energies Inc., held by Party B that will be transferred to Party A. Party A will also pay an amount of US$50,000 to Party B.  The effective closing date of this Agreement is December 31, 2013. The transaction shall be considered completed and closed when:

 

  

3

  

 

	
(a)  

	
股权转让已经由甲方的董事会批准。

The equity transfer has been approved by the Board of Directors of Party A.

	
3.2.  

	
在股权转让协议交割时:

Upon the closing of the Equity Transfer Agreement:

	
(a)  

	
甲方和乙方均不得向对方请求支付相互的内部应收款或应付款

Neither Party A nor Party B shall have any claim on each other with respect to intercompany receivables or payables due to each other.

 

	
(b)  

	
乙方同意100%承担公司的任何及全部当前和将来的债务。

Party B agrees to assume 100% of any and all, current and future liabilities of the Company.

	
(c)  

	
乙方应当确保本协议项下的股权转让在中华人民共和国合法注册。

Party B shall ensure that the Equity Transfer under this Agreement will be duly registered in PRC.

 

	
4.  

	
陈述及保证

REPRESENTATIONS AND WARRANTY

	
4.1.  

	
甲方和乙方均具有所有需要的权力、授权和法律能力,以签署和交付本协议并且完成由此规定的股权转让。甲方已经完成所有需要的行动以合法授权并批准本协议的签署、交付和履行,以及由此规定的股权转让。

Both Party A and Party B have all requisite power, authority and legal capacity to execute and deliver this Agreement and to consummate the Equity Transfer contemplated hereby. Party A has taken all required actions to duly authorize and approve the execution, delivery and performance of this Agreement and the consummation of the Equity Transfer contemplated hereby.

 

  

4

  

 

	
4.2.  

	
乙方对本协议的签署和履行不会违反任何中华人民共和国的法律,或与乙方为一方的任何协议冲突,或造成对于乙方为一方的任何协议的违约。

The execution and performance of this Agreement by Party B does not violate any laws in the PRC, or conflict with or result in a breach of any agreement to which Party B is a party to.

	
4.3.  

	
各方同意就因2013年12月31日之前公司行为而引起的任何全部过去或将来的索赔或诉讼,向另一方赔偿且使另一方免受损害。

Each Party agrees to indemnify the other and to hold harmless the other from any and all prior or future claims or litigation resulting from the Company activities prior to December 31, 2013.

(正文结束后为签字页)

 (End of Text with Signature Page to Follow)

 

  

5

  

 

(签字页/Signature Page)

 

有鉴于此,本协议经双方签署后自文首所载日期成立。

THEREFORE, this Agreement shall be concluded as of the date first written above after being executed by the Parties.

	
甲方/Party A:

	  
	
SunSi Energies Hong Kong Limited

 

由/By: _______________________

姓名/Name:Richard ST-Julien

职务:总裁

Title:  President

	  

 

	
乙方/Party B:

	  
	
刘东强先生/Dongqiang LIU

 

 

_______________________

Dongqiang LIU

	  

6

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