Document:

Exhibit
      10.6

    

    INDEMNIFICATION
      AGREEMENT

    

    This
      Indemnification Agreement (this “Agreement”),
      dated
      as of the 4th
      day
      of
February,
      2008 is
      made by and between SUTOR TECHNOLOGY GROUP LIMITED, a Nevada corporation (the
      “Company”),
      and
Xinchuang
      Li,
      an
      independent director of the Company (the “Indemnitee”).

    

    RECITALS

    

    A. The
      Company and the Indemnitee recognize that the present state of the law is too
      uncertain to provide the Company’s officers and directors with adequate and
      reliable advance knowledge or guidance with respect to the legal risks and
      potential liabilities to which they may become personally exposed as a result
      of
      performing their duties for the Company;

    

    B. The
      Company and the Indemnitee are aware of the substantial growth in the number
      of
      lawsuits filed against corporate officers and directors in connection with
      their
      activities in such capacities and by reason of their status as
      such;

    

    C. The
      Company and the Indemnitee recognize that the cost of defending against such
      lawsuits, whether or not meritorious, is typically beyond the financial
      resources of most officers and directors of the Company;

    

    D. The
      Company and the Indemnitee recognize that the legal risks and potential
      liabilities, and the threat thereof, associated with proceedings filed against
      the officers and directors of the Company bear no reasonable relationship to
      the
      amount of compensation received by the Company’s officers and
      directors;

    

    E. The
      Company, after reasonable investigation prior to the date hereof, has determined
      that the liability insurance coverage available to the Company as of the date
      hereof is inadequate, unreasonably expensive or both. The Company believes,
      therefore, that the interest of the Company and its current and future
      stockholders would be best served by a combination of (i) such insurance as
      the
      Company may obtain pursuant to the Company’s obligations hereunder and (ii) a
      contract with its officers and directors, including the Indemnitee, to indemnify
      them to the fullest extent permitted by law (as in effect on the date hereof,
      or, to the extent any amendment may expand such permitted indemnification,
      as
      hereafter in effect) against personal liability for actions taken in the
      performance of their duties to the Company;

    

    F. Section
      78.7502 of the Nevada Revised Statutes empowers Nevada corporations to indemnify
      their officers and directors and further states that the indemnification
      provided by Section 78.7502 shall not be deemed exclusive of any other rights
      to
      which those seeking
      indemnification may be entitled under the articles of incorporation or any
      bylaw, agreement, vote of stockholders or disinterested directors or otherwise,
      both as to action in an official capacity and as to action in another capacity
      while holding such office; thus, Section 78.7502 does not by itself limit the
      extent to which the Company may indemnify persons serving as its officers and
      directors;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    G. The
      Company’s Articles of Incorporation and Bylaws authorize the indemnification of
      the officers and directors of the Company in excess of that expressly permitted
      by Section 78.7502;

    

    H. The
      Board
      of Directors of the Company has concluded that, to retain and attract talented
      and experienced individuals to serve as officers and directors of the Company
      and to encourage such individuals to take the business risks necessary for
      the
      success of the Company, it is necessary for the Company to contractually
      indemnify its officers and directors, and to assume for itself liability for
      expenses and damages in connection with claims against such officers and
      directors in connection with their service to the Company, and has further
      concluded that the failure to provide such contractual indemnification could
      result in great harm to the Company and its stockholders;

    

    I. The
      Company desires and has requested the Indemnitee to serve or continue to serve
      as a director or officer of the Company, free from undue concern for the risks
      and potential liabilities associated with such services to the Company;
      and

    

    J. The
      Indemnitee is willing to serve, or continue to serve, the Company, provided,
      and
      on the expressed condition, that the Indemnitee is furnished with the
      indemnification provided for herein.

    

    AGREEMENT

    

    NOW,
      THEREFORE, the Company and Indemnitee agree as follows:

    

    1. DEFINITIONS.

    

    (a) “EXPENSES”
      means, for the purposes of this Agreement, all direct and indirect costs of
      any
      type or nature whatsoever (including, without limitation, any fees and
      disbursements of Indemnitee’s counsel, accountants and other experts and other
      out-of-pocket costs) actually and reasonably incurred by the Indemnitee in
      connection with the investigation, preparation, defense or appeal of a
      Proceeding; provided, however, that Expenses shall not include judgments, fines,
      penalties or amounts paid in settlement of a Proceeding.

    

    (b) “PROCEEDING”
      means, for the purposes of this Agreement, any threatened, pending or completed
      action or proceeding, whether civil, criminal, administrative or investigative
      (including an action brought by or in the right of the Company) in which
      Indemnitee may be or may have been involved as a party or otherwise, by reason
      of the fact that Indemnitee is or was a director or officer of the Company,
      by
      reason of any action taken by Indemnitee or of any inaction on his or her part
      while acting as such director or officer or by reason of the fact that he or
      she
      is or was serving at the request of the Company as a director, officer, employee
      or agent of another foreign or domestic corporation, partnership, joint venture,
      trust or other enterprise, or was a director or officer of the foreign or
      domestic corporation which was a predecessor corporation to the Company or
      of
      another enterprise at the request of such predecessor corporation, whether
      or
      not he or she is serving in such capacity at the time any liability or expense
      is incurred for which indemnification or reimbursement can be provided under
      this Agreement.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2. AGREEMENT
      TO SERVE.

    

    Indemnitee
      agrees to serve or continue to serve as a director or officer of the Company
      to
      the best of his or her abilities at the will of the Company or under separate
      contract, if such contract exists, for so long as Indemnitee is duly elected
      or
      appointed and qualified or until such time as the Indemnitee tenders his or
      her
      resignation in writing. Nothing contained in this Agreement is intended to
      create in Indemnitee any right to continued employment. 

    

    3. INDEMNIFICATION.

    

    (a) THIRD
      PARTY PROCEEDINGS. The Company shall indemnify Indemnitee against Expenses,
      judgments, fines, penalties or amounts paid in settlement (if the settlement
      is
      approved in advance by the Company) actually and reasonably incurred by
      Indemnitee in connection with a Proceeding (other than a Proceeding by or in
      the
      right of the Company) if Indemnitee acted in good faith and in a manner
      Indemnitee reasonably believed to be in the best interests of the Company,
      and,
      with respect to any criminal action or proceeding, had no reasonable cause
      to
      believe Indemnitee’s conduct was unlawful. The termination of any Proceeding by
      judgment, order, settlement, conviction, or upon a plea of NOLO CONTENDERE
      or
      its equivalent, shall not, of itself, create a presumption that Indemnitee
      did
      not act in good faith and in a manner which Indemnitee reasonably believed
      to be
      in the best interests of the Company, or, with respect to any criminal
      Proceeding, had no reasonable cause to believe that Indemnitee's conduct was
      unlawful.

    

    (b) PROCEEDINGS
      BY OR IN THE RIGHT OF THE COMPANY. To the fullest extent permitted by law,
      the
      Company shall indemnify Indemnitee against Expenses and amounts paid in
      settlement, actually and reasonably incurred by Indemnitee in connection with
      a
      Proceeding by or in the right of the Company to procure a judgment in its favor
      if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed
      to be in the best interests of the Company and its stockholders. Notwithstanding
      the foregoing, no indemnification shall be made in respect of any claim, issue
      or matter as to which Indemnitee shall have been adjudged liable to the Company
      in the performance of Indemnitee’s duty to the Company and its stockholders
      unless and only to the extent that the court in which such action or Proceeding
      is or was pending shall determine upon application that, in view of all the
      circumstances of the case, Indemnitee is fairly and reasonably entitled to
      indemnity for Expenses and then only to the extent that the court shall
      determine.

    

    (c) SCOPE.
      Notwithstanding any other provision of this Agreement but subject to Section
      14(b), the Company shall indemnify the Indemnitee to the fullest extent
      permitted by law, notwithstanding that such indemnification is not specifically
      authorized by other provisions of this Agreement, the Company’s Articles of
      Incorporation, the Company’s Bylaws or by statute.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4. LIMITATIONS
      ON INDEMNIFICATION.

    

    Any
      other
      provision herein to the contrary notwithstanding, the Company shall not be
      obligated pursuant to the terms of this Agreement: 

    

    (a) EXCLUDED
      ACTS. To indemnify Indemnitee for any acts or omissions or transactions from
      which a director may not be relieved of liability under applicable
      law;

    

    (b) EXCLUDED
      INDEMNIFICATION PAYMENTS. To indemnify or advance Expenses in violation of
      any
      prohibition or limitation on indemnification under the statutes, regulations
      or
      rules promulgated by any state or federal regulatory agency having jurisdiction
      over the Company;

    

    (c) CLAIMS
      INITIATED BY INDEMNITEE. To indemnify or advance Expenses to Indemnitee with
      respect to Proceedings or claims initiated or brought voluntarily by Indemnitee
      and not by way of defense, except with respect to Proceedings brought to
      establish or enforce a right to indemnification under this Agreement or any
      other statute or law or otherwise as required under Section 78.7502 of the
      Nevada Revised Statutes, but such indemnification or advancement of Expenses
      may
      be provided by the Company in specific cases if the Board of Directors has
      approved the initiation or bringing of such suit;

    

    (d) LACK
      OF
      GOOD FAITH. To indemnify Indemnitee for any Expenses incurred by the Indemnitee
      with respect to any Proceeding instituted by Indemnitee to enforce or interpret
      this Agreement, if a court of competent jurisdiction determines that each of
      the
      material assertions made by the Indemnitee in such Proceeding was not made
      in
      good faith or was frivolous; 

    

    (e) INSURED
      CLAIMS. To indemnify Indemnitee for Expenses or liabilities of any type
      whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes
      or penalties, and amounts paid in settlement) which have been paid directly
      to
      or on behalf of Indemnitee by an insurance carrier under a policy of directors’
and officers’ liability insurance maintained by the Company or any other policy
      of insurance maintained by the Company or Indemnitee; or

    

    (f) CLAIMS
      UNDER SECTION 16(b). To indemnify Indemnitee for Expenses and the payment of
      profits arising from the purchase and sale by Indemnitee of securities in
      violation of Section 16(b) of the Securities Exchange Act of 1934, as amended,
      or any similar successor statute. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5. DETERMINATION
      OF RIGHT TO INDEMNIFICATION.

    

    Upon
      receipt of a written claim addressed to the Board of Directors for
      indemnification pursuant to Section 3, the Company shall determine by any of
      the
      methods set forth in Section 78.751 of the Nevada Revised Statutes whether
      Indemnitee has met the applicable standards of conduct which makes it
      permissible under applicable law to indemnify Indemnitee. If a claim under
      Section 3 is not paid in full by the Company within ninety (90) days after
      such
      written claim has been received by the Company, the Indemnitee may at any time
      thereafter bring suit against the Company to recover the unpaid amount of the
      claim and, unless such action is dismissed by the court as frivolous or brought
      in bad faith, the Indemnitee shall be entitled to be paid also the expense
      of
      prosecuting such claim. The court in which such action is brought shall
      determine whether Indemnitee or the Company shall have the burden of proof
      concerning whether Indemnitee has or has not met the applicable standard of
      conduct.

    

    6. ADVANCEMENT
      AND REPAYMENT OF EXPENSES.

    

    Subject
      to Section 4 hereof, the Expenses incurred by Indemnitee in defending and
      investigating any Proceeding shall be paid by the Company in advance of the
      final disposition of such Proceeding within 30 days after receiving from
      Indemnitee the copies of invoices presented to Indemnitee for such Expenses,
      if
      Indemnitee shall provide an undertaking to the Company to repay such amount
      to
      the extent it is ultimately determined that Indemnitee is not entitled to
      indemnification. In determining whether or not to make an advance hereunder,
      the
      ability of Indemnitee to repay shall not be a factor. Notwithstanding the
      foregoing, in a proceeding brought by the Company directly, in its own right
      (as
      distinguished from an action bought derivatively or by any receiver or trustee),
      the Company shall not be required to make the advances called for hereby if
      the
      Board of Directors determines, in its sole discretion, that it does not appear
      that Indemnitee has met the standards of conduct which make it permissible
      under
      applicable law to indemnify Indemnitee and the advancement of Expenses would
      not
      be in the best interests of the Company and its stockholders.

    

    7. PARTIAL
      INDEMNIFICATION.

    

    If
      the
      Indemnitee is entitled under any provision of this Agreement to indemnification
      or advancement by the Company of some or a portion of any Expenses or
      liabilities of any type whatsoever (including, but not limited to, judgments,
      fines, penalties, and amounts paid in settlement) incurred by him in the
      investigation, defense, settlement or appeal of a Proceeding, but is not
      entitled to indemnification or advancement of the total amount thereof, the
      Company shall nevertheless indemnify or pay advancements to the Indemnitee
      for
      the portion of such Expenses or liabilities to which the Indemnitee is entitled.
      

    

    8. NOTICE
      TO
      COMPANY BY INDEMNITEE.

    

    Indemnitee
      shall notify the Company in writing of any matter with respect to which
      Indemnitee intends to seek indemnification hereunder as soon as reasonably
      practicable following the receipt by Indemnitee of written notice thereof;
      provided, however, that any delay in so notifying the Company shall not
      constitute a waiver by Indemnitee of her rights hereunder. The written
      notification to the Company shall be addressed to the Board of Directors and
      shall include a description of the nature of the Proceeding and the facts
      underlying the Proceeding and be accompanied by copies of any documents filed
      with the court in which the Proceeding is pending. In addition, Indemnitee
      shall
      give the Company such information and cooperation as it may reasonably require
      and as shall be within Indemnitee’s power.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    9. MAINTENANCE
      OF LIABILITY INSURANCE.

    

    (a) Subject
      to Section 4 hereof, the Company hereby agrees that so long as Indemnitee shall
      continue to serve as a director or officer of the Company and thereafter so
      long
      as Indemnitee shall be subject to any possible Proceeding, the Company, subject
      to Section 9(b), shall use reasonable commercial efforts to obtain and maintain
      in full force and effect directors’ and officers’ liability insurance
      (“D&O
      Insurance”)
      which
      provides Indemnitee the same rights and benefits as are accorded to the most
      favorably insured of the Company’ directors, if Indemnitee is a director; or of
      the Company’s officers, if Indemnitee is not a director of the Company but is an
      officer.

    

    (b) Notwithstanding
      the foregoing, the Company shall have no obligation to obtain or maintain
      D&O Insurance if the Company determines in good faith that such insurance is
      not reasonably available, the premium costs for such insurance are
      disproportionate to the amount of coverage provided, the coverage provided
      by
      such insurance is limited by exclusions so as to provide an insufficient
      benefit, or the Indemnitee is covered by similar insurance maintained by a
      subsidiary or parent of the Company.

    

    (c) If,
      at
      the time of the receipt of a notice of a claim pursuant to Section 8 hereof,
      the
      Company has D&O Insurance in effect, the Company shall give prompt notice of
      the commencement of such Proceeding to the insurers in accordance with the
      procedures set forth in the respective policies. The Company shall thereafter
      take all necessary or desirable action to cause such insurers to pay, on behalf
      of the Indemnitee, all amounts payable as a result of such Proceeding in
      accordance with the terms of such policies. 

    

    10. DEFENSE
      OF CLAIM.

    

    In
      the
      event that the Company shall be obligated under Section 6 hereof to pay the
      Expenses of any Proceeding against Indemnitee, the Company, if appropriate,
      shall be entitled to assume the defense of such Proceeding, with counsel
      approved by Indemnitee, which approval shall not be unreasonably withheld,
      upon
      the delivery to Indemnitee of written notice of its election to do so. After
      delivery of such notice, approval of such counsel by Indemnitee and the
      retention of such counsel by the Company, the Company will not be liable to
      Indemnitee under this Agreement for any fees of counsel subsequently incurred
      by
      Indemnitee with respect to the same Proceeding, provided that (i) Indemnitee
      shall have the right to employ counsel in any such Proceeding at Indemnitee’s
      expense; and (ii) if (A) the employment of counsel by Indemnitee has been
      previously authorized by the Company, or (B) Indemnitee shall have reasonably
      concluded that there may be a conflict of interest between the Company and
      the
      Indemnitee in the conduct of such defense or (C) the Company shall not, in
      fact,
      have employed counsel to assume the defense of such Proceeding, then the fees
      and expenses of Indemnitee’s counsel shall be at the expense of the
      Company.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    11. ATTORNEYS'
      FEES.

    

    In
      the
      event that Indemnitee or the Company institutes an action to enforce or
      interpret any terms of this Agreement, the Company shall reimburse Indemnitee
      for all of the Indemnitee’s reasonable fees and expenses in bringing and
      pursuing such action or defense, unless as part of such action or defense,
      a
      court of competent jurisdiction determines that the material assertions made
      by
      Indemnitee as a basis for such action or defense were not made in good faith
      or
      were frivolous.

    

    12. CONTINUATION
      OF OBLIGATIONS.

    

    All
      agreements and obligations of the Company contained herein shall continue during
      the period the Indemnitee is a director or officer of the Company, or is or
      was
      serving at the request of the Company as a director, officer, fiduciary,
      employee or agent of another corporation, partnership, joint venture, trust
      or
      other enterprise, and shall continue thereafter so long as the Indemnitee shall
      be subject to any possible proceeding by reason of the fact that Indemnitee
      served in any capacity referred to herein.

    

    13. SUCCESSORS
      AND ASSIGNS.

    

    This
      Agreement establishes contract rights that shall be binding upon, and shall
      inure to the benefit of, the successors, assigns, heirs and legal
      representatives of the parties hereto.

    

    14. NON-EXCLUSIVITY.

    

    (a) The
      provisions for indemnification and advancement of expenses set forth in this
      Agreement shall not be deemed to be exclusive of any other rights that the
      Indemnitee may have under any provision of law, the Company’s Articles of
      Incorporation or Bylaws, the vote of the Company’s stockholders or disinterested
      directors, other agreements or otherwise, both as to action in the Indemnitee’s
      official capacity and action in another capacity while occupying the
      Indemnitee’s position as a director or officer of the Company.

    

    (b) In
      the
      event of any changes, after the date of this Agreement, in any applicable law,
      statute, or rule which expand the right of a Nevada corporation to indemnify
      its
      officers and directors, the Indemnitee's rights and the Company’s obligations
      under this Agreement shall be expanded to the full extent permitted by such
      changes. In the event of any changes in any applicable law, statute or rule,
      which narrow the right of a Nevada corporation to indemnify a director or
      officer, such changes, to the extent not otherwise required by such law, statute
      or rule to be applied to this Agreement, shall have no effect on this Agreement
      or the parties’ rights and obligations hereunder.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    15. EFFECTIVENESS
      OF AGREEMENT.

    

    To
      the
      extent that the indemnification permitted under the terms of certain provisions
      of this Agreement exceeds the scope of the indemnification provided for in
      the
      Nevada Revised Statutes, such provisions shall not be effective unless and
      until
      the Company’s Articles of Incorporation authorize such additional rights of
      indemnification. In all other respects, the balance of this Agreement shall
      be
      effective as of the date set forth on the first page and may apply to acts
      of
      omissions of Indemnitee which occurred prior to such date if Indemnitee was
      an
      officer, director, employee or other agent of the Company, or was serving at
      the
      request of the Company as a director, officer, employee or agent of another
      corporation, partnership, joint venture, trust or other enterprise, at the
      time
      such act or omission occurred.

    

    16. SEVERABILITY.

    

    Nothing
      in this Agreement is intended to require or shall be construed as requiring
      the
      Company to do or fail to do any act in violation of applicable law. The
      Company’s inability, pursuant to court order, to perform its obligations under
      this Agreement shall not constitute a breach of this Agreement. The provisions
      of this Agreement shall be severable as provided in this Section 16. If this
      Agreement or any portion hereof shall be invalidated on any ground by any court
      of competent jurisdiction, then the Company shall nevertheless indemnify
      Indemnitee to the full extent permitted by any applicable portion of this
      Agreement that shall not have been invalidated, and the balance of this
      Agreement not so invalidated shall be enforceable in accordance with its
      terms.

    

    17.
      GOVERNING LAW.

    

    This
      Agreement shall be interpreted and enforced in accordance with the laws of
      the
      State of Nevada, without reference to its conflict of law principals. To the
      extent permitted by applicable law, the parties hereby waive any provisions
      of
      law which render any provision of this Agreement unenforceable in any respect.

    

    18. NOTICE.

    

    All
      notices, requests, demands and other communications under this Agreement shall
      be in writing and shall be deemed duly given (i) if delivered by hand and
      receipted for by the party addressee or (ii) if mailed by certified or
      registered mail with postage prepaid, on the third business day after the
      mailing date. Addresses for notice to either party are as shown on the signature
      page of this Agreement, or as subsequently modified by written
      notice.

    

    19. MUTUAL
      ACKNOWLEDGMENT.

    

    Both
      the
      Company and Indemnitee acknowledge that in certain instances, federal law or
      applicable public policy may prohibit the Company from indemnifying its
      directors and officers under this Agreement or otherwise. Indemnitee understands
      and acknowledges that the Company has undertaken or may be required in the
      future to undertake with the appropriate state or federal regulatory agency
      to
      submit for approval any request for indemnification, and has undertaken or
      may
      be required in the future to undertake with the Securities and Exchange
      Commission to submit the question of indemnification to a court in certain
      circumstances for a determination of the Company’s right under public policy to
      indemnify Indemnitee.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    20. COUNTERPARTS.

    

    This
      Agreement may be executed in one or more counterparts, each of which shall
      constitute an original.

    

    21. AMENDMENT
      AND TERMINATION.

    

    No
      amendment, modification, termination or cancellation of this Agreement shall
      be
      effective unless in writing signed by both parties hereto.

    

    [Signature
      Page Follows]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the day and
      year
      set forth above.

    

    
      	
              COMPANY:

            	 	
              INDEMNITEE:

            
	 	 	 	 
	
              SUTOR
                TECHNOLOGY GROUP LIMITED

            	 	 	 
	 	 	 	 
	
              By:   

            	
              /s/
                Liuhua Guo

            	 	
              By:
                

            	
              /s/
                Xinchuang Li

            
	 	
              Name:
                Liuhua Guo

            	 	 	
              Xinchuang
                Li

            
	 	
              Title:
                Chief Executive Officer

            	 	 	 

    

    

    
      	
              Address:

            	
              No.
                8 Huaye Road

            	 	
              Address:

            
	 	
              Dongbang
                Industrial Park

            	 	 
	 	
              Changshu,
                China 215534Exhibit
      10.1

     

    EMPLOYMENT
      AGREEMENT

     

    This
      EMPLOYMENT AGREEMENT (this “Agreement”)
      is
      entered into as of February 6, 2008, by and between SulphCo, Inc., a Nevada
      corporation (along with its successors and assigns, the “Company”),
      and
      Marion Clay Chambers (“Executive”).

     

    WHEREAS,
      the Company desires to employ Executive, and Executive desires to be employed
      by
      the Company, on the terms and conditions hereinafter set forth.

     

    NOW,
      THEREFORE, in consideration of the mutual promises contained herein and other
      good and valuable consideration, the Company and Executive agree as follows:
      

     

    1.    Employment.
      

     

    (a)    Term.
      Subject
      to the terms hereof, Executive’s employment hereunder shall commence as of
      February 6, 2008 (the
      “Effective
      Date”)
      and
      continue until the first anniversary of the Effective Date, with automatic
      one
      (1) year extensions thereafter, unless otherwise terminated pursuant to Section
      3 of the Agreement (such period, the “Employment
      Period”).

     

    (b)    Position,
      Place of Performance and Duties.
      Executive will serve as the Company’s Chief Operating Officer, and Executive
      shall report directly to the Company’s Chief Executive Officer (“CEO”)
      and
      the Company’s Board of Directors (the “Board”)
      and
      any committees thereof. Executive will have the responsibilities, duties and
      authority commensurate with the position of Chief Operating Officer, and
      Executive will perform such other services of an executive nature as may be
      prescribed from time to time by the CEO and the Board. Executive will generally
      perform his services hereunder at the Company’s principal offices in Houston,
      TX, or such other place as may be agreed to by Executive and the Board. During
      the Employment Period, Executive will be available to travel for business at
      such times and to such places as may be reasonably necessary in connection
      with
      the performance of his duties hereunder, including, but not limited to, anywhere
      in the United States, the Middle East and Europe. Executive
      shall devote his full business time and efforts to the performance of his duties
      hereunder. For
      the
      duration of the Employment Period, Executive agrees not to actively engage
      in
      any other employment, occupation or consulting activity for any direct or
      indirect remuneration without the prior written approval of the Board, which
      approval will not be unreasonably withheld; provided, however, that Executive
      may, without the approval of the Board, serve in any capacity with any civic,
      educational or charitable organization, subject to Executive’s obligations under
      this Agreement and any agreement contemplated under Section 5 of this
      Agreement.

     

    2.    Compensation.

     

    (a)    Base
      Salary.
      During
      the Employment Period, the Company will pay Executive a base salary at the
      annual rate of $250,000, which amount will be reviewed annually and subject
      to
      adjustment at the good faith discretion of the Board (or the Compensation
      Committee of the Board (the “Compensation
      Committee”)),
      including without limitation, discretionary cost of living adjustments (as
      adjusted from time to time, the “Base
      Salary”).
      The
      Base Salary will be payable in substantially equal installments in accordance
      with the Company’s payroll practices as in effect from time to
      time.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)    Annual
      Bonus.
      During
      the Employment Period, based on Executive’s performance relative to targets set
      by the Board and/or the Compensation Committee in its sole discretion, and
      subject to the overall performance of the Company, Executive will be eligible
      to
      receive annual bonuses, with a target bonus of up to 50% of Base Salary, in
      accordance with the terms and conditions established by the Board and/or the
      Compensation Committee from time to time.

     

    (c)    Equity
      Compensation.
      On the
      Effective Date, Executive will be granted an incentive stock option to purchase
      one hundred fifty thousand (150,000) shares of the Company's common stock at
      an
      exercise price equal to the fair market value of the Company’s common stock on
      the date of grant (the “Option”).
      The
      Option will vest over a three-year period, with 1/3
      of
      the shares subject to the Option vesting on each of the first three
      anniversaries following the date of grant.
      The
      Option will be subject to the terms, definitions and provisions of the SulphCo,
      Inc. 2006 Stock Option Plan, and the accompanying stock option agreement under
      which it is granted. In addition, Executive may further be entitled to annual
      option grants as part of the annual review process at the discretion of the
      Board and the Compensation Committee.

     

    (d)    Vacation.
      During
      the Employment Period, Executive will be entitled to (i) five weeks paid
      vacation in each calendar year (to be taken at such times and in such number
      of
      days as Executive and the Company shall mutually agree), (ii) paid sick days
      as
      needed due to illness or other incapacity, and (iii) paid Company holidays,
      all
      in accordance with the Company’s policies for its senior executives as in effect
      from time to time. Any accrued unused vacation may be carried over from one
      year
      to the following year, provided that no more than five weeks vacation may be
      carried over at any time. 

     

    (e)    Benefits.
      During
      the Employment Period, Executive (and his eligible dependents) will be entitled
      to participate in the same manner as the Company’s other senior executives in
      any employee benefit plans which the Company provides or may establish for
      the
      benefit of its senior executives generally; provided that the Company reserves
      the right to cancel or change any of its employee benefit plans and programs
      at
      any time.

     

    (f)    Reimbursement
      of Expenses.
      During
      the Employment Period, the Company will reimburse Executive for all
      out-of-pocket business expenses that are incurred by him in furtherance of
      the
      Company’s business in accordance with the Company’s policies with respect
      thereto as in effect from time to time. Without limiting the generality of
      the
      foregoing, the Company shall pay or reimburse Executive for charges relating
      to
      the use of his cellular phone and reasonable business travel
      expenses.

     

    (g)    Signing
      Bonus.
      The
      Company shall pay to Executive a signing bonus of $50,000, payable in two equal
      installments of $25,000, the first of which shall be payable within ten (10)
      days following the Effective Date, and the second of which shall be payable
      on
      or before March 31, 2008, as long as Executive remains employed by the Company
      as of the applicable payment dates.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    3.    Termination.
      Executive’s employment
      hereunder will terminate upon the first to occur of the following: 

     

    (a) Executive’s
      death; 

     

    (b) by
      the
      Company in the event of Executive’s Disability (as defined below);

     

    (c) by
      the
      Company for Cause (as defined below);

     

    (d) by
      the
      Company without Cause; or 

     

    (e) by
      Executive, with or without Good Reason (as defined below). 

     

    For
      purposes of this Agreement, the following terms shall have the following
      meanings:

     

    “Cause”
means:
      (i) Executive’s conviction of, or plea of nolo
      contendere
      to, a
      felony, or a crime involving dishonesty, disloyalty or moral
      turpitude; (ii)
      Executive’s willful disloyalty or deliberate dishonesty; (iii) the commission by
      Executive of an act of fraud or embezzlement against the Company; (iv)
      Executive’s failure to use his good faith efforts to perform in all material
      respects such duties as are contemplated by this Agreement, or to follow any
      lawful direction of the CEO, the Board or any committee thereof; (v) Executive’s
      gross negligence in the performance of his duties hereunder; or (vi) a material
      breach by Executive of any provision of this Agreement or of any Company policy,
      which breach is not cured within thirty (30) days after delivery by the Company
      to Executive of written notice of such breach, provided that, if such breach
      is
      not capable of being cured within such 30-day period, Executive will have a
      reasonable additional period to cure such breach. No act or omission on
      Executive’s part will be considered “willful” unless done, or admitted to be
      done, by Executive in bad faith or without his reasonable belief that such
      act
      or omission was in the best interests of the Company. Any determination of
      “Cause” shall be made in good faith by a majority vote of the
      Board.

     

    “Disability”
means
      Executive’s mental, physical or other disability, the condition of which renders
      him incapable of performing his obligations under this Agreement for a period
      of
      90 consecutive days or an aggregate of 120 days (whether or not consecutive)
      in
      any 12-month period. Any determination of “Disability” shall be made in good
      faith by a majority vote of the Board.

     

    “Good
      Reason”
means,
      without Executive’s consent: (i) a failure by the Company to comply with any
      material provision of this Agreement which is not cured within thirty (30)
      days
      after Executive has given written notice of such noncompliance to the Company,
      provided that, if such failure is not capable of being cured within such 30-day
      period, the Company will have a reasonable additional period to cure such
      failure; (ii) a material adverse change by the Company in Executive’s
      responsibilities, duties or authority as the Chief Operating Officer of the
      Company, which causes Executive’s position with the Company to have less
      responsibility or authority than Executive’s position immediately prior to such
      change, provided that any such change is not in connection with the termination
      of Executive’s employment with the Company; or (iii) at Executive’s election, a
      Change in Control of the Company if, following such Change in Control, Executive
      is no longer the Chief Operating Officer of the Company (or the surviving or
      successor company, as applicable), provided that Executive’s election under this
      subsection (iii) may only be exercised within the thirty (30) day period
      following the first six (6) month anniversary following the Change in Control.
      

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    “Change
      in Control”
means:
      (i) any person, entity or affiliated group becoming the beneficial owner of
      more
      than 50% of the outstanding equity securities of the Company or otherwise
      becoming the beneficial owner of outstanding equity securities of the Company
      having more than 50% of the voting power of the Company; (ii) a consolidation
      or
      merger (in one transaction or a series of related transactions) of the Company
      pursuant to which the holders of the Company’s equity securities immediately
      prior to such transaction or series of related transactions would not be the
      holders immediately after such transaction or series of related transactions
      of
      at least 50% of the voting power of the entity surviving such transaction or
      series of related transactions; or (iii) the sale, lease, exchange or other
      transfer (in one transaction or a series of related transactions) of all or
      substantially all of the assets of the Company.

     

    4.    Termination
      Procedures; Effect of Termination.
      

     

    (a)    Notice
      of Termination.
      Any
      termination of Executive’s employment by the Company or Executive (other than
      termination on account of Executive’s death) shall be communicated by written
      notice (a “Notice
      of Termination”)
      to the
      other party hereto in accordance with Section 7(a) below, which notice shall
      indicate the specific termination provision in Section 3 of this Agreement
      relied upon and, if the termination is by the Company for Cause or by Executive
      for Good Reason, the specific reasons therefor.

     

    (b)    Date
      of Termination.
      As used
      herein, “Date
      of Termination”
shall
      mean: (i) if Executive’s employment is terminated as a result of Executive’s
      death, the date of Executive’s death; (ii) if Executive’s employment is
      terminated by reason of Executive’s Disability, on the date Notice of
      Termination is given or such later date specified in the Notice of Termination
      as the effective date of termination; (iii) if Executive’s employment is
      terminated by the Company for Cause, on the date Notice of Termination is given
      or such later date specified in the Notice of Termination as the effective
      date
      of termination; (iv) if Executive’s employment is terminated by the Company
      without Cause, such date which is specified in the Notice of Termination as
      the
      effective date of termination; and (v) if Executive’s employment is terminated
      by Executive, with or without Good Reason, such date which is specified in
      the
      Notice of Termination as the effective date of termination, which date shall
      be
      at least thirty (30) days following the date the Notice of Termination is
      given.

     

    (c)    Compensation
      Upon Termination.
      

     

    (i) At
      any
      time that Executive’s employment is terminated, the Company will pay the Accrued
      Obligations (as defined below) to Executive (or to his estate or legal
      representative, if applicable) on or promptly following the Date of Termination.
      For purposes of this Agreement, “Accrued
      Obligations”
means
      (A) the portion of Executive’s Base Salary as has accrued up through the Date of
      Termination which the Executive has not yet been paid, (B) an amount equal
      to
      any unpaid bonus which has already been earned and awarded by the Board and/or
      the Compensation Committee through the Date of Termination, (C) an amount equal
      to the value of Executive’s accrued unused vacation days, and (D) the amount of
      expenses incurred by Executive on behalf of the Company prior to the Date of
      Termination and not yet reimbursed as of such date.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    (ii) In
      addition to the Accrued Obligations, if Executive’s employment is terminated by
      the Company without Cause or by Executive for Good Reason (and other than due
      to
      Executive’s death or Disability), then in exchange for Executive’s execution and
      delivery to the Company of a full general release (which Executive does not
      later revoke in accordance with its terms), in a form acceptable to the Company,
      releasing all claims, known or unknown, that Executive may have against the
      Company, and any subsidiary or related entity, and their respective officers,
      directors, employees and agents, the Company will (A) within thirty (30) days
      following the Date of Termination, pay to Executive (or his estate or legal
      representative if applicable) a lump-sum severance payment equal to one year
      of
      his then current Base Salary, and (B) upon proper election of continuation
      coverage under Title X of the Consolidated Budget Reconciliation Act of 1985,
      as
      amended (“COBRA”)
      under
      the Company’s group health plans, continue to pay the group medical and dental
      COBRA premiums for Executive and Executive’s eligible dependents until the
      earliest of (x) the date Executive first becomes eligible for coverage under
      a
      subsequent employer’s applicable group health plan(s), (y) the date such
      coverage terminates under applicable law, or (z) eighteen (18) months after
      the
      Date of Termination.

     

    Notwithstanding
      any other provision with respect to the timing of payments under this Section
      4(c), if, at the time of Executive’s termination,
      Executive is deemed to be a “specified employee”  (within the meaning
      of Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”),
      and
any
      successor statute, regulation and guidance thereto)
      of the
      Company, then only to the extent necessary to comply with the requirements
      of
      Code Section 409A, any payments to which Executive may become entitled
      under Section 4(c) which are subject to Code Section 409A (and not otherwise
      exempt from its application) will be withheld until the first business day
      of
      the seventh month following the Date of Termination, at which time Executive
      shall be paid an aggregate amount of any withheld payments otherwise
      due under Section 4(c), as applicable.

     

    (d)    Other
      Provisions.
      The
      effect of termination on any stock options or restricted stock granted or issued
      to Executive shall be governed by the terms and provisions of any applicable
      option agreement, restricted stock agreement and/or equity incentive plan.
      The
      amount of any benefit due to Executive after the date of such termination
      pursuant to this Agreement will not be reduced or offset by any payment or
      benefit that Executive may receive from any other source.

     

    5.    Restrictive
      Covenants.
      On the
      Effective Date, Executive will enter into a confidentiality, non-competition,
      non-solicitation, assignment of inventions and non-disparagement agreement,
      substantially in the form of the Company’s standard agreement used for such
      purposes, and the non-competition and non-solicitation covenants shall last
      for
      two years following the Date of Termination.

     

    6.    Indemnification.
      The
      Company shall, to the fullest extent permitted by law and by its Articles of
      Incorporation and Bylaws, indemnify Executive and hold him harmless for any
      acts
      or decisions made by him in good faith while performing his duties to the
      Company, and the Company shall at all times during Executive’s employment with
      the Company, maintain directors’ and officers’ liability insurance, at and upon
      commercially reasonable terms and limits.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    7.    General.

     

    (a)    Notices.
      All
      notices, requests, consents and other communications hereunder will be in
      writing, will be addressed to the receiving party’s address set forth below or
      to such other address as a party may designate by notice hereunder, and will
      be
      either (i) delivered by hand, (ii) sent by overnight courier, or
      (iii) sent by registered or certified mail, return receipt requested,
      postage prepaid. All notices, requests, consents and other communications
      hereunder will be deemed to have been given either (A) if by hand, at the
      time of the delivery thereof to the receiving party, (B) if sent by
      overnight courier, on the next business day following the day such notice is
      delivered to the courier service, or (C) if sent by registered or certified
      mail, on the third business day following the day such mailing is made. All
      notices, requests, consents and other communications hereunder will be sent
      as
      follows:

     

    
      	
            	If
              to the Company:	
              SulphCo,
                Inc.

            

    

    4333
      W.
      Sam Houston Pkwy

    N.
      Suite
      190

    Houston,
      TX 77043

    Attention:
      Chief Executive Officer

     

    
      	
            	If
              to Executive:	
              Marion
                Clay Chambers

            

    

    55
      Redbud
      Ridge Place

    The
      Woodlands, TX 77380

    

    (b)    Entire
      Agreement.
      This
      Agreement (together with any other agreements referenced herein) embodies the
      entire agreement and understanding between the parties hereto with respect
      to
      the subject matter hereof and supersedes all prior oral or written agreements
      and understandings relating to the subject matter hereof. No statement,
      representation, warranty, covenant or agreement of any kind not expressly set
      forth in this Agreement will affect, or be used to interpret, change or
      restrict, the express terms and provisions of this Agreement.

     

    (c)    Modifications
      and Amendments.
      The
      terms and provisions of this Agreement may be modified or amended only by
      written agreement executed by the parties hereto.

     

    (d)    Waivers
      and Consents.
      The
      terms and provisions of this Agreement may be waived, or consent for the
      departure therefrom granted, only by written document executed by the party
      entitled to the benefits of such terms or provisions. No such waiver or consent
      will be deemed to be or will constitute a waiver or consent with respect to
      any
      other terms or provisions of this Agreement, whether or not similar. Each such
      waiver or consent will be effective only in the specific instance and for the
      purpose for which it was given, and will not constitute a continuing waiver
      or
      consent.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (e)    Successors
      and Assigns; Third Party Beneficiaries.
      All
      statements, representations, warranties, covenants and agreements in this
      Agreement will be binding on the parties hereto and will inure to the benefit
      of
      the respective successors, heirs, executors and permitted assigns of each party
      hereto. Any such successor of the Company will be deemed substituted for the
      Company under the terms of this Agreement for all purposes. For this purpose,
      “successor” means any person, firm, corporation or other business entity which
      at any time, whether by purchase, merger or otherwise, directly or indirectly
      acquires all or substantially all of the assets or business of the Company.
      Executive may not assign any of Executive’s rights to compensation or other
      benefits under this Agreement, except by will or the laws of descent and
      distribution. Any other attempted assignment, transfer, conveyance or other
      disposition of Executive’s right to compensation or other benefits will be null
      and void. Nothing in this Agreement will be construed to create any rights
      or
      obligations except among the parties hereto, and (except for Executive’s estate
      or other legal representative) no person or entity will be regarded as a
      third-party beneficiary of this Agreement.

     

    (f)    Governing
      Law.
      This
      Agreement and the rights and obligations of the parties hereunder will be
      construed in accordance with and governed by the law of the State of Texas,
      without giving effect to the conflict of law principles thereof.

     

    (g)    Jurisdiction,
      Venue.
      Any
      legal action or proceeding with respect to this Agreement will be brought in
      the
      Federal or state courts of Harris County, Texas. By execution and delivery
      of
      this Agreement, each of the parties hereto accepts for itself and in respect
      of
      its property, generally and unconditionally, the exclusive jurisdiction of
      the
      aforesaid courts. 

     

    (h)    Severability.
      The
      parties intend this Agreement to be enforced as written. However, if
      any
      court of competent jurisdiction determines any provision, or any portion
      thereof, of this Agreement to be unenforceable or invalid, then such provision
      shall be deemed limited to the extent that such court deems it valid or
      enforceable and the remaining provisions of this Agreement shall nevertheless
      remain in full force and effect.

     

    (i)    Headings
      and Captions.
      The
      headings and captions of the various subdivisions of this Agreement are for
      convenience of reference only and will in no way modify or affect the meaning
      or
      construction of any of the terms or provisions hereof.

     

    (j)    No
      Waiver of Rights, Powers and Remedies.
      No
      failure or delay by a party hereto in exercising any right, power or remedy
      under this Agreement, and no course of dealing between the parties hereto,
      will
      operate as a waiver of any such right, power or remedy of the party. No single
      or partial exercise of any right, power or remedy under this Agreement by a
      party hereto, nor any abandonment or discontinuance of steps to enforce any
      such
      right, power or remedy, will preclude such party from any other or further
      exercise thereof or the exercise of any other right, power or remedy hereunder.
      The election of any remedy by a party hereto will not constitute a waiver of
      the
      right of such party to pursue other available remedies. No notice to or demand
      on a party not expressly required under this Agreement will entitle the party
      receiving such notice or demand to any other or further notice or demand in
      similar or other circumstances or constitute a waiver of the rights of the
      party
      giving such notice or demand to any other or further action in any circumstances
      without such notice or demand.

     

    (k)    Expenses.
      Each
      party shall bear its own fees and expenses incurred in connection with the
      preparation, negotiation, execution and delivery of this Agreement. The
      prevailing party in any legal proceeding to enforce this Agreement shall be
      entitled to legal fees and costs reasonably incurred. 

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (l)    Withholdings.
      The
      Company will deduct from each payment to be made to Executive under this
      Agreement such amounts, if any, required to be deducted or withheld under
      applicable law.

     

    (m)    Tax
      Consequences.
      Executive hereby acknowledges and agrees that the Company makes no
      representations or warranties regarding the tax treatment or tax consequences
      of
      any compensation, benefits or other payments under the Agreement, including,
      without limitation, by operation of Code Section 409A, or any successor statute,
      regulation or guidance thereto.

     

    (n)    Counterparts.
      This
      Agreement may be executed in two or more counterparts, and by different parties
      hereto on separate counterparts, each of which will be deemed an original,
      but
      all of which together will constitute one and the same instrument. This
      Agreement may be delivered by facsimile, and facsimile signatures shall be
      treated as original signatures for all applicable purposes.

     

    (o)    Opportunity
      to Review.
      Executive hereby acknowledges that Executive has had adequate opportunity to
      review these terms and conditions and to reflect upon and consider the terms
      and
      conditions of this Agreement, and that Executive has had the opportunity to
      consult with counsel of Executive’s
      own
      choosing regarding such terms.  Executive
      further acknowledges that Executive fully understands the terms of this
      Agreement and has voluntarily executed this Agreement.

     

    [Remainder
      of page left intentionally blank. Signature page(s) to follow.]

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the undersigned have executed and delivered this Agreement
      as
      of the date and year first above written.

     

    

     

    SULPHCO,
      INC.

     

    By:/s/
      Larry D. Ryan

    

    Name:
      Larry
      D. Ryan

    

    Title:
      Chief
      Executive Officer

    

    

    EXECUTIVE

    

    /s/
      Marion Clay Chambers

    Marion
      Clay Chambers 

     

    
      
         

      

      
        9

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