Document:

Exhibit 10.01 Share Exchange Agreement

Exhibit 10.01

SHARE EXCHANGE AGREEMENT

This Share Exchange Agreement, dated as of April 25th, 2016, (this “Agreement”) by and among Tanaris Power Holdings, Inc., Nevada corporation having its executive offices at 311 Broadway, Point Pleasant Beach, NJ 08742 (“TPHX”) and Hammer Fiber Optic Investments Ltd., a Delaware corporation (“HFOL”) having its executive offices at 311 Broadway, Point Pleasant Beach, NJ 08742, and the Shareholders of Hammer (the “HFOL Shareholders”). For purposes of this Agreement TPHX, HFOL, and the HFOL Shareholders are sometimes collectively referred to as the “Parties” and individually as a “Party.”

RECITALS

 

WHEREAS, (i) the HFOL Shareholder and HFOL believe it is in their respective best interests for the HFOL Shareholders to exchange, Twenty Million shares of HFOL common stock, representing One Hundred (100%) percent of the issued and outstanding shares of HFOL (the “HFOL Shares”), for Fifty Million (50,000,000) shares of post reverse split (as set forth in Section 5.5 below) common stock TPHX (such shares being hereinafter referred to as the “TPHX Shares”); and (ii) TPHX believes it is in its best interest and the best interest of its stockholders to acquire the HFOL Shares in exchange for the TPHX Shares, all upon the terms and subject to the conditions set forth in this Agreement (the “Share Exchange”); and,

 

WHEREAS, it is the intention of the parties that: (i) the Share Exchange shall qualify as a tax-free reorganization under Section 368(a)(1)(B) of the Internal Revenue Code of 1986, as amended (the “Code”); and (ii) the Share Exchange shall qualify as a transaction in securities exempt from registration or qualification under the Securities Act of 1933, as amended and in effect on the date of this Agreement (the “Securities Act”); and,

 

WHEREAS, it is the intention of the parties that upon the Closing (as hereinafter defined) HFOL shall become a wholly owned subsidiary of TPHX; and, 

WHEREAS, the Parities agree that the foregoing Recitals are true and correct and are hereby incorporated into this Agreement by this reference. 

NOW, THEREFORE, in consideration of the mutual terms, conditions and other agreements set forth herein, the parties hereto agree as follows:

ARTICLE I

 

EXCHANGE OF HFOL SHARES FOR TPHX SHARES

 

Section 1.1

Agreements to Exchange HFOL Shares for TPHX Shares. On the Closing Date (as hereinafter defined) and upon the terms and subject to the conditions set forth in this Agreement, the HFOL Shareholders shall assign, transfer, convey and deliver the HFOL Shares to TPHX in consideration and exchange for the HFOL Shares, TPHX shall issue, transfer, convey and deliver the TPHX Shares to the HFOL Shareholders.

  

Section 1.2 

Closing and Actions at Closing. The closing of the Share Exchange (the “Closing”) shall take place remotely via the exchange of documents and signatures at such time and date as the parties hereto shall agree orally or in writing (the “Closing Date”).

Section 1.3 

Share Exchange.  After Closing and contingent upon the satisfaction of the terms and conditions set forth in this Agreement, Twenty Million shares of common stock, representing One Hundred (100%) percent of the HFOL Shares shall be exchanged and delivered to TPHX and in exchange TPHX shall exchange and deliver Fifty Million (50,000,000), post reverse split (as set forth in Section 5.5 below), restricted common shares of TPHX to the HFOL Shareholders. 

Section 1.4

Restrictions on TPHX Shares Issued Pursuant to this Agreement.  The TPHX shares to be issued by TPHX pursuant to this Agreement have not been registered and are being issued pursuant to a specific exemption under the Securities Act, as well as under certain state securities laws for transactions by an issuer not involving any public offering or in reliance on limited federal preemption from such state securities registration laws, based on the suitability and investment representations made by the HFOL Shareholders to TPHX.  The TPHX Shares of to be issued by TPHX pursuant to this Agreement must be held and may not be sold, transferred, or otherwise disposed of for value unless such securities are subsequently registered under the Securities Act or an exemption from such registration is available, and that the certificates representing the Shares of TPHX Common Stock issued in the Share Exchange will bear a legend in substantially the following form so restricting the sale of such securities:

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The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and are “restricted securities” within the meaning of Rule 144 promulgated under the Securities Act. The securities have been acquired for investment and may not be sold or transferred without complying with Rule 144 in the absence of an effective registration or other compliance under the Securities Act.

Section 1.5

Share Exchange Procedure. The HFOL Shareholders may exchange their certificates representing the HFOL Shares by delivering such certificate(s) to TPHX duly executed and endorsed in blank (or accompanied by duly executed stock powers duly endorsed in blank), in each case in proper form for transfer, with signatures guaranteed, and, if applicable, with all stock transfer and any other required documentary stamps affixed thereto and with appropriate instructions to allow the transfer agent to issue certificates for the TPHX Shares to the holder thereof.

ARTICLE II

 

REPRESENTATIONS AND WARRANTIES OF TPHX

 

TPHX represent, warrant and agree that all of the statements in the following subsections of this Article II are true and complete as of the date hereof.

 

Section 2.1

Corporate Organization

A. 

TPHX is a corporation duly organized, validly existing and in good standing under the laws of Nevada, and has all requisite corporate power and authority to own its properties and assets and governmental licenses, authorizations, consents and approvals to conduct its business as now conducted and is duly qualified to do business and is in good standing in each jurisdiction in which the nature of its activities makes such qualification and being in good standing necessary, except where the failure to be so qualified and in good standing will not have a Material Adverse Effect on the activities, business, operations, properties, assets, condition or results of operation of TPHX. “Material Adverse Effect” means, when used with respect to TPHX, any event, occurrence, fact, condition, change or effect, which, individually or in the aggregate, would reasonably be expected to be materially adverse to the business, operations, properties, assets, condition (financial or otherwise), or operating results of TPHX, or materially impair the ability of TPHX to perform its obligations under this Agreement, excluding any change, effect or circumstance resulting from (i) the announcement, pendency or consummation of the transactions contemplated by this Agreement; or (ii) changes in the U.S. securities markets generally.

B.

Copies of the Articles of Incorporation and Bylaws of TPHX with all amendments thereto, as of the date hereof (the “TPHX Charter Documents”), have been furnished to HFOL, if so requested, and such copies are accurate and complete as of the date hereof.  The minute books of TPHX are current as required by law, contain the minutes of all meetings of the TPHX Board and its stockholders from its date of incorporation to the date of this Agreement, and adequately reflect all material actions taken by the TPHX Board and its stockholders. TPHX is not in violation of any of the provisions of the TPHX Charter Documents.

 

Section 2.2

Capitalization of TPHX.  

A.

The authorized capital stock of TPHX consists of: (i) 250,000,000 shares of common stock, par value $0.001, of which 75,000,000 shares of common stock are issued and outstanding immediately prior to the Share Exchange. TPHX has no shares of preferred stock designated. 

 

B.

All of the issued and outstanding shares of common stock of TPHX immediately prior to this Share Exchange are, and all shares of common stock of TPHX when issued in accordance with the terms hereof will be, duly authorized, validly issued, fully paid and non-assessable, will have been issued in compliance with all applicable U.S. federal and state securities laws and state corporate laws, and will have been issued free of preemptive rights of any security holder. The issuance of all of the shares of TPHX described in this Section 2.2 have been, or will be, as applicable, in compliance with U.S. federal and state securities laws and state corporate laws and no stockholder of TPHX has any right to rescind or bring any other claim against TPHX for failure to comply with the Securities Act, or state securities laws.

Section 2.3 

Shell Status. As of the date of this Agreement, TPHX represents that to its knowledge and belief it is not and has not been a “shell company” for the proceeding twelve (12) months, as that term is defined in Rule 405 of the Securities Act and Rule 12b-2 of the Exchange Act. Further, TPHX has not filed and Quarterly or Annual Reports with the SEC indicating that it was, during the relevant period, a shell company. Management represents that during the existence of the entity there has always been a viable business with ongoing operations and has had more than nominal operations. 

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Section 2.4

Authorization, Validity and Enforceability of Agreements. TPHX has all corporate power and authority to execute and deliver this Agreement and all agreements, instruments and other documents to be executed and delivered in connection with the transactions contemplated by this Agreement (collectively the “Agreements”) to perform its obligations hereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery of the Agreements by TPHX and the consummation by TPHX of the transactions contemplated hereby and thereby, have been duly authorized by all necessary corporate action of TPHX, and no other corporate proceedings on the part of TPHX are necessary to authorize the Agreements or to consummate the transactions contemplated hereby and thereby. The Agreements constitute the valid and legally binding obligation of TPHX and is enforceable in accordance with its terms, except as such enforcement may be limited by general equitable principles, or by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors rights generally. TPHX does not need to give any notice to, make any filings with, or obtain any authorization, consent or approval of any government or governmental agency or other party in order for it to consummate the transactions contemplated by any of the Agreements, resulting from the issuance of the TPHX Shares in connection with the Share Exchange.

Section 2.5

No Conflict or Violation. Neither the execution and delivery of the Agreements by TPHX, nor the consummation by TPHX of the transactions contemplated thereby will: (i) contravene, conflict with, or violate any provision of the TPHX Charter Documents; (ii) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge or other restriction of any government, governmental agency, court, administrative panel or other tribunal to which TPHX is subject; (iii) conflict with, result in a breach of, constitute a default (or an event or condition which, with notice or lapse of time or both, would constitute a default) under, result in the acceleration of, create in any party the right to accelerate, terminate, modify or cancel, or require any notice under any agreement, contract, lease, license, instrument or other arrangement to which TPHX is a party or by which it is bound, or to which any of its assets or properties are subject; or (iv) result in or require the creation or imposition of any encumbrance of any nature upon or with respect to any of TPHX’ assets, including without limitation, the TPHX Shares.

 

Section 2.6

Litigation. There is no action, suit, proceeding or investigation (“Action”) pending or, to the knowledge of TPHX, currently threatened against TPHX or any of its affiliates, that may affect the validity of this Agreement or the right of TPHX to enter into this Agreement or to consummate the transactions contemplated hereby or thereby. There is no Action pending or, to the knowledge of TPHX, currently threatened against TPHX or any of its affiliates, before any court or by or before any governmental body or any arbitration board or tribunal, nor is there any judgment, decree, injunction or order of any court, governmental department, commission, agency, instrumentality or arbitrator against or relating to TPHX or any of its affiliates. Neither TPHX nor any of its affiliates is a party or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality. There is no Action by TPHX or any of its affiliates currently pending or which TPHX or any of its affiliates intends to initiate.

Section 2.7

Compliance with Laws. TPHX has been and is in compliance with, and has not received any notice of any violation of any, applicable law, order, ordinance, regulation or rule of any kind whatsoever, including without limitation the Securities Act, the Exchange Act, the applicable rules and regulations of the SEC or the applicable securities laws and rules and regulations of any state.

 

Section 2.8

Financial Statements. TPHX’s financial statements (the “Financial Statements”) have been prepared in accordance with generally accepted accounting principles applicable in the United States of America (“U.S. GAAP”) applied on a consistent basis, except that those Financial Statements that are not audited do not contain all footnotes required by U.S. GAAP. The Financial Statements fairly present the financial condition and operating results of TPHX as of the dates, and for the periods, indicated therein, subject to normal year-end audit adjustments. TPHX has no material liabilities (contingent or otherwise). TPHX is not a guarantor or indemnitor of any indebtedness of any other person, entity or organization. TPHX maintains a standard system of accounting established and administered in accordance with U.S. GAAP.

 

Section 2.9

Books, Financial Records and Internal Controls. All the accounts, books, registers, ledgers, TPHX Board minutes and financial and other records of whatsoever kind of TPHX have been fully, properly and accurately kept and completed; there are no material inaccuracies or discrepancies of any kind contained or reflected therein; and they give and reflect a true and fair view of the financial, contractual and legal position of TPHX. TPHX maintains a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate actions are taken with respect to any differences.

  

Section 2.10

No Disagreements with Accountants and Lawyers. There are no disagreements of any kind presently existing, or anticipated by TPHX to arise, between TPHX and any accountants and/or lawyers formerly or presently engaged by TPHX. TPHX is current with respect to fees owed to its accountants and lawyers.

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Section 2.11 

Absence of Undisclosed Liabilities. Except as specifically disclosed herein: (A) there has been no event, occurrence or development that has resulted in or could result in a Material Adverse Effect; (B) TPHX has not incurred any liabilities, obligations, claims or losses, contingent or otherwise, including debt obligations, other than professional fees to be paid prior to Closing; (C) TPHX has not declared or made any dividend or distribution of cash or property to its shareholders, purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, or issued any equity securities other than with respect to transactions contemplated hereby; (D) TPHX has not made any loan, advance or capital contribution to or investment in any person or entity; (E) TPHX has not discharged or satisfied any lien or encumbrance or paid any obligation or liability (absolute or contingent), other than current liabilities paid in the ordinary course of business; (F) TPHX has not suffered any losses or waived any rights of material value, whether or not in the ordinary course of business, or suffered the loss of any material amount of prospective business; and (G) except for the Share Exchange, TPHX has not entered into any transaction other than in the ordinary course of business, or entered into any other material transaction, whether or not in the ordinary course of business.

 

Section 2.12 

No Undisclosed Events or Circumstances. No event or circumstance has occurred or exists with respect to TPHX or its respective businesses, properties, prospects, operations or financial condition, which, under applicable law, rule or regulation, requires public disclosure or announcement by TPHX but which has not been so publicly announced or disclosed. TPHX has not provided to HFOL, or the HFOL Shareholder, any material non-public information or other information which, according to applicable law, rule or regulation, was required to have been disclosed publicly by TPHX but which has not been so disclosed, other than with respect to the transactions contemplated by this Agreement and/or the Share Exchange.

 

Section 2.13

Disclosure. This Agreement and any certificate attached hereto or delivered in accordance with the terms hereof by or on behalf of TPHX in connection with the transactions contemplated by this Agreement, when taken together, do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements contained herein and/or therein not misleading.

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF HFOL

 

HFOL represents, warrants and agrees that all of the statements in the following subsections of this Article III, pertaining to HFOL, are true and complete as of the date hereof.

 

Section 3.1

Corporate Organization

A. 

HFOL is a corporation duly organized, validly existing and in good standing under the laws of Delaware, and has all requisite corporate power and authority to own its properties and assets and governmental licenses, authorizations, consents and approvals to conduct its business as now conducted and is duly qualified to do business and is in good standing in each jurisdiction in which the nature of its activities makes such qualification and being in good standing necessary, except where the failure to be so qualified and in good standing will not have a Material Adverse Effect on the activities, business, operations, properties, assets, condition or results of operation of HFOL. “Material Adverse Effect” means, when used with respect to HFOL, any event, occurrence, fact, condition, change or effect, which, individually or in the aggregate, would reasonably be expected to be materially adverse to the business, operations, properties, assets, condition (financial or otherwise), or operating results of HFOL, or materially impair the ability of HFOL to perform its obligations under this Agreement, excluding any change, effect or circumstance resulting from (i) the announcement, pendency or consummation of the transactions contemplated by this Agreement; or (ii) changes in the U.S. securities markets generally.

B.

Copies of the formation documents of HFOL, or their equivalent, with all amendments thereto, as of the date hereof (the “HFOL Charter Documents”), have been furnished to TPHX, if so requested, and such copies are accurate and complete as of the date hereof.  The minute books of HFOL are current as required by law, contain the minutes of all meetings of the HFOL Board and its stockholders from its date of formation to the date of this Agreement, and adequately reflect all material actions taken by the HFOL Board and its stockholders. HFOL is not in violation of any of the provisions of the HFOL Charter Documents.

 

Section 3.2

Capitalization of HFOL.  

A.

The authorized capital stock of HFOL consists of: (i) 50,000,000 shares of common stock, $0.00001 par value, of which Twenty Million (20,000,000) shares of common stock are issued and outstanding immediately prior to the Share Exchange; and (ii) 0 shares of Preferred Stock.

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B.

All of the issued and outstanding shares of common stock of HFOL immediately prior to this Share Exchange are, and all shares of common stock of HFOL when issued in accordance with the terms hereof will be, duly authorized, validly issued, fully paid and non-assessable, will have been issued in compliance with all applicable securities laws and corporate laws of Delaware and will have been issued free of preemptive rights of any security holder.  The issuance of all of the shares of HFOL described in this Section 2.2 have been, or will be, as applicable, in compliance with U.S. federal and state securities laws and state corporate laws and no stockholder of HFOL has any right to rescind or bring any other claim against HFOL for failure to comply with the Securities Act, or state securities laws. 

Section 3.3

Shareholders of HFOL’s Common Stock. HFOL has provided TPHX a true and complete list of the holders of all issued and outstanding shares of HFOL including number of TPHX shares held as of the date of this Agreement.

Section 3.4

Directors and Officers of HFOL.  The duly elected or appointed directors and the duly appointed officers of HFOL are as set out in Schedule 3.4.

Section 3.5 

Financial Statements. HFOL has kept all books and records since inception and such financial statements have been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) consistently applied throughout the periods involved. The balance sheets are true and accurate and present fairly as of their respective dates the financial condition of HFOL.  As of the date of such balance sheets, except as and to the extent reflected or reserved against therein, including but not limited to any previous tax liability HFOL had no liabilities or obligations (absolute or contingent) which should be reflected in the balance sheets or the notes thereto prepared in accordance with GAAP, and all assets reflected therein are properly reported and present fairly the value of the assets of HFOL, in accordance with GAAP. The statements of operations, stockholders’ equity and cash flows reflect fairly the information required to be set forth therein by GAAP.

 

The books and records, financial and otherwise, of HFOL are, in all material aspects, complete and correct and have been maintained in accordance with good business and accounting practices.

 

All of HFOL’s assets are reflected on its financial statements, and HFOL has no material liabilities, direct or indirect, matured or unmatured, contingent or otherwise which is not reflected on its financial statements.

 

Section 3.6

Information. The information concerning HFOL set forth in this Agreement is complete and accurate in all material respects and does not contain any untrue statement of a material fact or omit to state a material fact required to make the statements made, in light of the circumstances under which they were made, not misleading.

Section 3.7 

Personal Property. HFOL possesses, and has good and marketable title of all property necessary for the continued operation of the business of HFOL as presently conducted and as represented to TPHX.  All such property is used in the business of HFOL.  All such property is in reasonably good operating condition (normal wear and tear excepted), and is reasonably fit for the purposes for which such property is presently used.  All material equipment, furniture, fixtures and other tangible personal property and assets owned or leased by HFOL and its subsidiaries is owned by HFOL or its subsidiaries free and clear of all liens, security interests, charges, encumbrances, and other adverse claims.

Section 3.8

Intellectual Property. HFOL represents and warrants that all trademarks and trademark applications, and all patents and patent applications, as set forth in Schedule 3.8, and any trade secrets, and “know-how” held relating to business of HFOL, and all other intangible assets, in HFOL’s possession or that may be reasonably acquired by HFOL any other proprietary information and trade secrets relating to the business of HFOL (collectively the “Intellectual Property”) shall remain the intellectual property of HFOL as of the date of Closing of this Agreement and that HFOL shall take any steps reasonable to assign or otherwise transfer any Intellectual Property right to TPHX, as necessary to protect TPHX’s rights to the same.  Further, HFOL owns, free and clear of any encumbrance, or has the valid right to sell all Intellectual Property used by in its business, as currently conducted. HFOL represents that it has not received any written complaint, claim or notice alleging any such infringement, violation or misappropriation. Additionally, HFOL has taken reasonable precautions (i) to protect its rights in its Intellectual Property and (ii) to maintain the confidentiality of its trade secrets, know-how and other confidential Intellectual Property, related to the business and to HFOL’s knowledge, there have been no acts or omissions by the managers, members, employees and agents of HFOL, the result of which would be to materially compromise the rights of HFOL to apply for or enforce appropriate legal protection of HFOL’s Intellectual Property. 

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Section 3.9

Material Contracts and Transactions. Schedule 3.9 attached hereto lists each material contract, agreement, license, permit, arrangement, commitment, instrument or contract to which HFOL or any of its subsidiaries is a party (each, a “Contract”).  Each Contract is in full force and effect, and there exists no material breach or violation of or default by HFOL or any of its subsidiaries under any Contract, or any event that with notice or the lapse of time, or both, will create a material breach or violation thereof or default under any Contract by HFOL or any of its subsidiaries.  The continuation, validity, and effectiveness of each Contract will in no way be affected by the consummation of the Transaction or any of the transactions contemplated in this Agreement.  There exists no actual or threatened termination, cancellation, or limitation of, or any amendment, modification, or change to any Contract.

Section 3.10

Subsidiaries.  Except as set forth on Schedule 3.10, HFOL does not have any subsidiaries or agreements of any nature to acquire any subsidiary or to acquire or lease any other business operations.  Each subsidiary of HFOL is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation and has the requisite corporate power and authority to own, lease and to carry on its business as now being conducted.  Each subsidiary of HFOL is duly qualified to do business and is in good standing as a corporation in each of the jurisdictions in which HFOL owns property, leases property, does business, or is otherwise required to do so, where the failure to be so qualified would have a material adverse effect on the business of HFOL and its subsidiaries taken as a whole. HFOL owns all of the shares of each subsidiary of HFOL and there are no outstanding options, warrants, subscriptions, conversion rights, or other rights, agreements, or commitments obligating any subsidiary of HFOL to issue any additional common shares of such subsidiary, or any other securities convertible into, exchangeable for, or evidencing the right to subscribe for or acquire from any subsidiary of HFOL any shares of such subsidiary.

Section 3.11

Absence of Certain Changes or Events. As of the date of this Agreement, (a) there has not been any material adverse change in the business, operations, properties, assets, or condition (financial or otherwise) of HFOL; and (b) HFOL has not: (i) declared or made, or agreed to declare or make, any payment of dividends or distributions of any assets of any kind whatsoever to stockholders or purchased or redeemed, or agreed to purchase or redeem, any of its shares; (ii) made any material change in its method of management, operation or accounting; (iii) entered into any other material transaction other than in the ordinary course of its business; or (iv) made any increase in or adoption of any profit sharing, bonus, deferred compensation, insurance, pension, retirement, or other employee benefit plan, payment, or arrangement made to, for, or with its officers, directors, or employees.

 

Section 3.12

Litigation and Proceedings. There are no actions, suits, proceedings, or investigations pending or, to the knowledge of HFOL after reasonable investigation, threatened by or against HFOL or affecting HFOL or its properties, at law or in equity, before any court or other governmental agency or instrumentality, domestic or foreign, or before any arbitrator of any kind.  HFOL does not have any knowledge of any material default on its part with respect to any judgment, order, injunction, decree, award, rule, or regulation of any court, arbitrator, or governmental agency or instrumentality.

  

Section 3.13

Compliance With Laws and Regulations. To the best of its knowledge, HFOL has complied with all applicable statutes and regulations, except to the extent that noncompliance would not materially and adversely affect the business, operations, properties, assets, or condition of HFOL or except to the extent that noncompliance would not result in the occurrence of any material liability for HFOL.  This compliance includes, but is not limited to, the filing of all reports to date with relevant authorities.

 

Section 3.14

Approval of Agreement. The Board of Directors of HFOL has authorized the execution and delivery of this Agreement by HFOL and has approved this Agreement and the transactions contemplated hereby.

 

Section 3.15

Valid Obligation. This Agreement and all agreements and other documents executed by HFOL in connection herewith constitute the valid and binding obligation of HFOL, enforceable in accordance with its or their terms, except as may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and subject to the qualification that the availability of equitable remedies is subject to the discretion of the court before which any proceeding therefore may be brought.

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ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES OF HFOL SHAREHOLDERS

 

The HFOL Shareholder hereby severally and not jointly represents and warrants to TPHX:

 

Section 4.1 

Authority. The HFOL Shareholders has the right, power, authority and capacity to execute and deliver this Agreement to which such HFOL Shareholders is a party, to consummate the transactions contemplated by this Agreement, and to perform such HFOL Shareholder’s obligations under this Agreement. This Agreement has been duly and validly authorized and approved, executed and delivered by the HFOL Shareholders. Assuming this Agreement has been duly and validly authorized, executed and delivered by the parties thereto other than such HFOL Shareholders, this Agreement is duly authorized, executed and delivered by the HFOL Shareholders and constitutes the legal, valid and binding obligations of the HFOL Shareholders, enforceable against the HFOL Shareholders in accordance with their respective terms, except as such enforcement is limited by general equitable principles, or by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors rights generally.

  

Section 4.2

No Conflict. Neither the execution or delivery by the HFOL Shareholders of this Agreement to which the HFOL Shareholders are a party nor the consummation or performance by the HFOL Shareholders of the transactions contemplated hereby or thereby will, directly or indirectly, (a) contravene, conflict with, or result in a violation of any provision of the organizational documents of the HFOL Shareholders; (b) contravene, conflict with, constitute a default (or an event or condition which, with notice or lapse of time or both, would constitute a default) under, or result in the termination or acceleration of, any agreement or instrument to which any of the HFOL Shareholders are a party or by which the properties or assets of the HFOL Shareholders is bound; or (c) contravene, conflict with, or result in a violation of, any law or order to which any of the HFOL Shareholders, or any of the properties or assets of the HFOL Shareholders, may be subject.

 

Section 4.3

 Litigation. There is no pending Action against the HFOL Shareholders that involves the HFOL Shares or that challenges, or may have the effect of preventing, delaying or making illegal, or otherwise interfering with, any of the transactions contemplated by this Agreement or the business of HFOL and, to the knowledge of the HFOL Shareholders, no such Action has been threatened, and no event or circumstance exists that is reasonably likely to give rise to or serve as a basis for the commencement of any such Action.

  

Section 4.4

Ownership of Shares. The HFOL Shareholders are the record and beneficial owners of the HFOL Shares. The HFOL Shareholder are not the record or beneficial owners of any other shares of HFOL. The HFOL Shareholders have and shall transfer at the Closing, good and marketable title to the HFOL Shares, free and clear of all liens, claims, charges, encumbrances, pledges, mortgages, security interests, options, rights to acquire, proxies, voting trusts or similar agreements, restrictions on transfer or adverse claims of any nature whatsoever, excepting only restrictions on future transfers imposed by applicable law.

 

Section 4.5

Pre-emptive Rights.  The HFOL Shareholders have no pre-emptive rights or any other rights to acquire any shares of HFOL that have not been waived or exercised.

ARTICLE V

 

CONDITIONS TO THE OBLIGATIONS OF HFOL AND THE HFOL SHAREHOLDERS

 

The obligations of HFOL to consummate the transactions contemplated by this Agreement are subject to the fulfillment, at or before the Closing Date, of the following conditions, any one or more of which may be waived by HFOL or the HFOL Shareholders, as the case may be, in their sole discretion:

 

Section 5.1

Representations and Warranties of TPHX. All representations and warranties made by TPHX in this Agreement shall be true and correct in all material respects on and as of the Closing Date.

 

Section 5.2

Agreements and Covenants. TPHX shall have performed and complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with on or prior to the Closing Date.

 

Section 5.3

Consents and Approvals. All consents, waivers, authorizations and approvals of any governmental or regulatory authority, domestic or foreign, and of any other person, firm or corporation, required in connection with the execution, delivery and performance of this Agreement shall be in full force and effect on the Closing Date.

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Section 5.4

No Violation of Orders. No preliminary or permanent injunction or other order issued by any court or governmental or regulatory authority, domestic or foreign, nor any statute, rule, regulation, decree or executive order promulgated or enacted by any government or governmental or regulatory authority, which declares this Agreement invalid in any respect or prevents the consummation of the transactions contemplated hereby, or which materially and adversely affects the assets, properties, operations, prospects, net income or financial condition of TPHX shall be in effect; and no action or proceeding before any court or governmental or regulatory authority, domestic or foreign, shall have been instituted or threatened by any government or governmental or regulatory authority, domestic or foreign, or by any other person or entity, which seeks to prevent or delay the consummation of the transactions contemplated by this Agreement or which challenges the validity or enforceability of this Agreement.

 

Section 5.5

Obligations Prior to Closing. TPHX must have caused the following to occur prior to Closing: 

A.

TPHX shall have filed with the Financial Industry Regulatory Authority (“FINRA”) such paperwork as necessary to complete a One Thousand-for-One (1000:1) reverse split (the “Reverse Split”) of the TPHX common stock. The THPX shares shall be issued to the HFOL Shareholders following FINRA’s approval of the Reverse Split. 

B.

TPHX shall deliver the following documents to HFOL: This Agreement duly executed and such other documents as HFOL or the HFOL Shareholder may reasonably request for the purpose of evidencing the accuracy of any of the representations and warranties of TPHX, evidencing the performance of, or compliance by TPHX with any covenant or obligation required to be performed or complied with by TPHX, evidencing the satisfaction of any condition referred to in this Article V, or otherwise facilitating the consummation or performance of any of the transactions contemplated by this Agreement. 

Section 5.6

No Material Adverse Effect.  There shall not have been any event, occurrence or development that has resulted in or could result in a Material Adverse Effect on or with respect to TPHX.

Section 5.7 

Employment Agreements.  TPHX will have received from HFOL copies of all agreements or arrangements that evidence the employment of all of the hourly and salaried employees of HFOL as set forth on Schedule 5.7 attached hereto, which constitute all of the employees reasonably necessary to operate the business of HFOL substantially as presently operated.

ARTICLE VI

 

CONDITIONS TO THE OBLIGATIONS OF TPHX

 

The obligations of TPHX to consummate the transactions contemplated by this Agreement are subject to the fulfillment, at or before the Closing Date, of the following conditions, any one or more of which may be waived by TPHX in its sole discretion:

 

Section 6.1

Representations and Warranties of HFOL and the HFOL Shareholder. All representations and warranties made by HFOL and the HFOL Shareholder on behalf of themselves individually in this Agreement shall be true and correct on and as of the Closing Date.

Section 6.2 

Approval by Majority Consent.  The holders of at least a majority (51%) of the outstanding shares of common stock of HFOL must approve this Agreement by written consent prior to the Closing Date.  

 

Section 6.3

Agreements and Covenants. HFOL and the HFOL Shareholder shall have performed and complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with by each of them on or prior to the Closing Date.

 

Section 6.4

Consents and Approvals. All consents, waivers, authorizations and approvals of any governmental or regulatory authority, domestic or foreign, and of any other person, firm or corporation, required in connection with the execution, delivery and performance of this Agreement, shall have been duly obtained and shall be in full force and effect on the Closing Date.

 

Section 6.5

No Violation of Orders. No preliminary or permanent injunction or other order issued by any court or other governmental or regulatory authority, domestic or foreign, nor any statute, rule, regulation, decree or executive order promulgated or enacted by any government or governmental or regulatory authority, domestic or foreign, that declares this Agreement invalid or unenforceable in any respect or which prevents the consummation of the transactions contemplated hereby, or which materially and adversely affects the assets, properties, operations, prospects, net income or financial condition of HFOL shall be in effect; and no action or proceeding before any court or government or regulatory authority, domestic or foreign, shall have been instituted or threatened by any government or governmental or regulatory authority, domestic or foreign, or by any other person or entity, which seeks to prevent or delay the consummation of the transactions contemplated by this Agreement or which challenges the validity or enforceability of this Agreement.

8

Section 6.6

Documents. HFOL and the HFOL Shareholder must deliver to TPHX at the Closing:

A. 

share certificates evidencing the number of HFOL Shares, along with executed share transfer forms transferring such HFOL Shares to TPHX;

B.

this Agreement to which the HFOL and the HFOL Shareholder are each a party, duly executed; and

C. 

such other documents as TPHX may reasonably request for the purpose of (i) evidencing the accuracy of any of the representations and warranties of HFOL and the HFOL Shareholder, (ii) evidencing the performance of, or compliance by HFOL and the HFOL Shareholder with, any covenant or obligation required to be performed or complied with by HFOL and the HFOL Shareholder, as the case may be, (iii) evidencing the satisfaction of any condition referred to in this Article VI, or (iv) otherwise facilitating the consummation or performance of any of the transactions contemplated by this Agreement.

Section 6.7

No Claim Regarding Stock Ownership or Consideration. There must not have been made or threatened by any person, any claim asserting that such person (a) is the holder of, or has the right to acquire or to obtain beneficial ownership of the HFOL Shares, or any other stock, voting, equity, or ownership interest in, HFOL, or (b) is entitled to all or any portion of the TPHX Shares.

ARTICLE VII

 

SURVIVAL AND INDEMNIFICATION

 

Section 7.1 

Survival of Provisions. The respective representations, warranties, covenants and agreements of each of the parties to this Agreement (except covenants and agreements which are expressly required to be performed and are performed in full on or before the Closing Date) shall expire on the first day of the three-year anniversary of the Closing Date (the “Survival Period”). The right to indemnification, payment of damages or other remedy based on such representations, warranties, covenants, and obligations will not be affected by any investigation conducted with respect to, or any knowledge acquired (or capable of being acquired) at any time, whether before or after the execution and delivery of this Agreement, with respect to the accuracy or inaccuracy of or compliance with, any such representation, warranty, covenant, or obligation. The waiver of any condition based on the accuracy of any representation or warranty, or on the performance of or compliance with any covenant or obligation, will not affect the right to indemnification, payment of damages, or other remedy based on such representations, warranties, covenants, and obligations.

 

Section 7.2

Indemnification.

 

A.

Indemnification Obligations in favor of TPHX. From and after the Closing Date until the expiration of the Survival Period, HFOL shall reimburse and hold harmless TPHX and its shareholders (such person and their heirs, executors, administrators, agents, successors and assigns is referred to herein as a “TPHX Indemnified Party”) against and in respect of any and all damages, losses, settlement payments, in respect of deficiencies, liabilities, costs, expenses and claims suffered, sustained, incurred or required to be paid by such TPHX Indemnified Party, and any and all actions, suits, claims, or legal, administrative, arbitration, governmental or other procedures or investigation against any TPHX Indemnified Party, which arises or results from a third-party claim brought against a TPHX Indemnified Party to the extent based on a breach of the representations and warranties with respect to the business, operations or assets of HFOL. All claims of TPHX pursuant to this Section 7.2 shall be brought by TPHX on behalf of TPHX and those Persons who were stockholders of TPHX immediately prior to the Closing Date.  In no event shall any such indemnification payments exceed $50,000 in the aggregate from HFOL.   No claim for indemnification may be brought under this Section 7.2(A) unless all claims for indemnification, in the aggregate, total more than $10,000.

B.

Indemnification Obligations in favor of HFOL and the HFOL Shareholder. From and after the Closing Date until the expiration of the Survival Period, TPHX and the TPHX shareholders shall indemnify and hold harmless HFOL, the HFOL Shareholder, and his respective officers, directors, agents, attorneys and employees, and each person, if any, who controls or may “control” (within the meaning of the Securities Act) any of the forgoing persons or entities (each a “HFOL Indemnified Person”) from and against any and all losses, costs, damages, liabilities and expenses arising from claims, demands, actions, causes of action, including, without limitation, legal fees (collectively, “Damages”) arising out of: (i) any breach of representation or warranty made by TPHX in this Agreement and in any certificate delivered by TPHX pursuant to this Agreement; (ii) any breach by TPHX of any covenant, obligation or other agreement made by TPHX in this Agreement; and (iii) a third-party claim based on any acts or omissions by TPHX. In no event shall any such indemnification payments exceed $50,000 in the aggregate from TPHX.  No claim for indemnification may be brought under this Section 7.2(B) unless all claims for indemnification, in the aggregate, total more than $10,000.

9

ARTICLE VIII

 

MISCELLANEOUS PROVISIONS

 

Section 8.1

Successors and Assigns. This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors and assigns; provided that no party shall assign or delegate any of the obligations created under this Agreement without the prior written consent of the other parties.

 

Section 8.2

Fees and Expenses. Except as otherwise expressly provided in this Agreement, all legal and other fees, costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by each Party, as incurred respectively.

 

Section 8.3

Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been given or made if in writing and delivered personally or 7 days after being sent by registered or certified mail (postage prepaid, return receipt requested) to the parties at the addresses set forth in the Preamble of this Agreement, or to such other persons or at such other addresses as shall be furnished by any party by like notice to the others, and such notice or communication shall be deemed to have been given or made as of the date so delivered or mailed. No change in any of such addresses shall be effective insofar as notices under this Section 8.3 are concerned unless notice of such change shall have been given to such other party hereto as provided in this Section 8.3.

 

Section 8.4

Entire Agreement. This Agreement, together with the exhibits hereto, represents the entire agreement and understanding of the parties with reference to the transactions set forth herein and no representations or warranties have been made in connection with this Agreement other than those expressly set forth herein or in the exhibits, certificates and other documents delivered in accordance herewith. This Agreement supersedes all prior negotiations, discussions, correspondence, communications, understandings and agreements between the parties relating to the subject matter of this Agreement and all prior drafts of this Agreement, all of which are merged into this Agreement. No prior drafts of this Agreement and no words or phrases from any such prior drafts shall be admissible into evidence in any action or suit involving this Agreement.

 

Section 8.5

Severability. This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible so as to be valid and enforceable.

 

Section 8.6

Titles and Headings. The Article and Section headings contained in this Agreement are solely for convenience of reference and shall not affect the meaning or interpretation of this Agreement or of any term or provision hereof.

 

Section 8.7

Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall be considered one and the same agreement. Fax and PDF copies shall be considered originals for all purposes.

 

Section 8.8

Convenience of Forum; Consent to Jurisdiction. The parties to this Agreement, acting for themselves and for their respective successors and assigns, without regard to domicile, citizenship or residence, hereby expressly and irrevocably elect as the sole judicial forum for the adjudication of any matters arising under or in connection with this Agreement, and consent and subject themselves to the jurisdiction of, the courts of the State of Nevada, and/or the U.S. District Court for Nevada, in respect of any matter arising under this Agreement. Service of process, notices and demands of such courts may be made upon any party to this Agreement by personal service at any place where it may be found or giving notice to such party as provided in Section 8.3.

 

Section 8.9

Enforcement of the Agreement. The parties hereto agree that irreparable damage would occur if any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereto, this being in addition to any other remedy to which they are entitled at law or in equity.

 

Section 8.10

Governing Law. This Agreement shall be governed by and interpreted and enforced in accordance with the laws of the State of Nevada without giving effect to the choice of law provisions thereof.

10

 

Section 8.11

Amendments and Waivers. Except as otherwise provided herein, no amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by all of the parties hereto. No waiver by any party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any such prior or subsequent occurrence.

[SIGNATURE PAGE FOLLOWS]

11

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

 

 

TANARIS POWER HOLDINGS INC.

Per:    

/s/ Michael Cothill

_________________________________

   

Name: Michael Cothill

Title: Director and Chief Executive Officer

  

 

HAMMER FIBER OPTICS INVESTMENTS LTD. 

 

Per:

/s/ Mark Stogdill

__________________________________

Name: Mark G. Stogdill

Title: President and Director

 

HAMMER FIBER OPTICS INVESTMENTS LTD. 

SHAREHOLDERS

  

Per:

 /s/ Mark Stogdill

__________________________________

Name: Mark G. Stogdill, 

on behalf of the Shareholders representing 

100% of the issued and outstanding shares of 

Hammer Fiber Optics Investments Ltd. 

12Exhibit

EXHIBIT 10.1

        
February 3, 2016
Delivered in Person
Peter W. Walcott, Esq.
c/o Entegris, Inc.
129 Concord Road
Billerica, MA 01821

Dear Peter:

The purpose of this letter agreement (“Agreement”) is to set forth the severance compensation and benefits being offered to you and to specify the other severance arrangements as the result of the termination of your employment with Entegris, Inc. (the “Company”) by reason of your retirement.

1.    Resignation.  You have resigned from all positions and offices held by you with the Company and its subsidiaries effective July 5, 2016 or such later date as the Company may designate (the “Separation Date”).  You agree to provide the Company with reasonable assistance in identifying and hiring your successor as General Counsel and Secretary of the Company and in transitioning your responsibilities to that successor.  You agree to continue to discharge your duties as Senior Vice President, General Counsel and Secretary of the Company through the later of the Separation Date or the date that your successor is hired and has commenced employment with the Company.  In the event that your successor is hired and commences employment prior to the Separation Date, your employment with the Company shall continue as General Counsel Transition Advisor to your successor through the Separation Date and thereafter on such terms as may be mutually agreed with your successor.  Nothing in this paragraph 1, however, shall modify the “at-will” nature of your employment, meaning that either you or the Company may terminate employment at any time with or without notice or cause.  You will continue to receive the payments specified in paragraph 2 below until the Separation Date; thereafter you shall be entitled to the severance benefits specified in paragraph 3 below.  You further agree to execute all such other documents and forms in connection with your resignation as may be requested by the Company.

2.    Payment of Accrued Rights.  You will receive pay for the following:  (A) your base salary in effect as of the above date of this letter, to the extent not previously paid; (B) reimbursement for any unreimbursed business expenses properly incurred by you in accordance with Company policy prior to the above date of this letter and properly submitted for reimbursement within sixty (60) days following the date of this letter; and (C) such reimbursements and benefits under the Company’s Benefit Plans, if any, to which you became entitled prior to or on the above date of this letter, including, but not limited to, any vacation accrued but unused through the date set forth above, as determined in accordance with Company policies.  You acknowledge that you will receive payment for these accrued rights whether or not you sign this Agreement.

3.    Severance Benefits.  In consideration of your acceptance of this Agreement and subject to:  (i) the expiration of the seven (7) day revocation/rescission period as provided in paragraph 16 below; and (ii) full compliance with your obligations under this Agreement, the Company will provide you or, in the event of your death, your estate, with the following severance pay and benefits:
		
	(a)
	The Company will continue to pay you:  (A) your base salary in effect on the above date of this letter; and (B) reimbursement for any necessary business expenses properly incurred by you after the date of this letter through the Separation Date in connection with your continuing to perform the responsibilities referred to in paragraph 1 above.

		
	(b)
	The Company will provide severance pay for a period of twenty-four (24) months following the Separation Date (the “Severance Pay Period”) at your current base salary at a rate of Three Hundred Fourteen Thousand and No/100 Dollars ($314,000) per year.  Payments of separation pay hereunder will be made in the form of salary continuation and will begin on the next regular Company payday following the Separation Date, 

and in no event later than sixty (60) days following the Separation Date.  The first payment would be retroactive to the day following the Separation Date.  
		
	(c)
	If you are enrolled in the Company's medical and dental plans, subject to receipt of any required consent by any health maintenance organization, health insurance provider or dental insurance provider with which you are enrolled, the Company will continue to pay the premium for benefit coverage on the same basis as you are enrolled on the date hereof through the earlier of (i) the expiration of twenty-four (24) months following the Separation Date; or (ii) the date you become eligible for coverage under the health plan of another employer; (iii) loss of coverage due to your separation and failure of the applicable health maintenance organization, health insurance provider or dental insurance provider to consent to continued coverage.  Upon termination of medical and dental benefits pursuant to clause (i) or (ii) above you may, at your own expense, elect to continue your participation and that of your eligible dependents in those plans for a period of time under the federal law known as "COBRA."  In the event that any required consent by any health maintenance organization, health insurance provider or dental insurance provider with which you are enrolled is denied, and you elect to continue participation under “COBRA”, then the Company will pay the premium for benefit coverage under COBRA on the same basis as you are enrolled on the date hereof through the earlier of (i) the expiration of twenty-four (24) months following the Separation Date; or (ii) the date you become eligible for coverage under the health plan of another employer, provided, however, that in the event that the Company determines that it is unable to continue any such participation, it shall pay the cost, on an after-tax basis, of comparable coverage. 

		
	(d)
	The Company will pay you the variable incentive compensation for which you may be eligible and which is payable under the Entegris Incentive Plan for fiscal year 2015 at the levels as determined by the Management Compensation and Development Committee of the Company’s Board of Directors in its sole discretion in accordance with the terms of the 2015 Entegris Incentive Plan.  This variable incentive compensation, if any, will be paid to you in early 2016 at the same time as variable incentive compensation is paid under the Entegris Incentive Plan to other executives but in any event, such payment will be made no later than March 15, 2016.  You will also be eligible to participate in the 2016 Entegris Incentive Plan on a pro rata basis through the Separation Date. 

		
	(e)
	If you are enrolled in the Company's group life insurance plan on the Separation Date, subject to receipt of any required consent by any group life insurance provider, the Company shall pay the premium in order for you to continue your participation in the Company's group life insurance plan until the expiration of twenty-four (24) months following the Separation Date.  In the event that the group life insurance provider refuses to so consent, then the Company shall provide you with reasonable assistance should you wish to convert such group policy into an individual policy.  If you convert such policy, the Company will reimburse you for the premiums thereon for such twenty-four month period following the Separation Date.

		
	(f)
	All unvested portions of outstanding equity awards scheduled to vest prior to the Separation Date shall vest in accordance with the terms of the award.  All other unvested portions of outstanding equity awards shall be cancelled as of the Separation Date and shall be of no further force or effect.  In addition, you shall have a period of one (1) year following the Separation Date to exercise all stock options that are vested and outstanding as of the Separation Date or which vest in accordance with this paragraph 3(f), or until the date such stock options would have expired in the absence of a termination of employment, if earlier.

		
	(g)
	Your contributions and the Company’s matching contributions to the Entegris Inc. 401(k) Savings and Profit Sharing Plan (2012 Restatement) shall terminate as of the Separation Date.  The balances in your accounts under the Entegris Inc. 401(k) Savings and Profit Sharing Plan (2012 Restatement) and in the Entegris, Inc. Supplemental Executive Retirement Plan For Key Salaried Employees will be paid out to you in accordance with the terms of those plans and the requirements of law.  You acknowledge that, pending such pay outs, such balances shall continue to be subject to investment risk in accordance with the investment choices under those plans that you have selected.

4.    Certain Tax Matters.  Payments and benefits under this Agreement shall be made and provided without regard to whether the deductibility of such payments (or any other payments or benefits to or for your benefit) would be limited or precluded by Section 280G ("Section 280G") of the U.S. Internal Revenue Code of 1986, as 

amended (the "Code") and without regard to whether such payments (or any other payments or benefits) would subject you to the federal excise tax applicable to certain "excess parachute payments" under Section 4999 of the Code (the "Excise Tax").  If any portion of the payments or benefits to or for your benefit (including, but not limited to, payments and benefits under this Agreement but determined without regard to this paragraph) constitutes an "excess parachute payment" within the meaning of Section 280G (the aggregate of such payments being hereinafter referred to as the "Excess Parachute Payments"), the Company shall promptly pay to you an additional amount (the "gross-up payment") that after reduction for all taxes (including but not limited to the Excise Tax) with respect to such gross-up payment equals the Excise Tax with respect to the Excess Parachute Payments; provided that to the extent any gross-up payment would be considered "deferred compensation" for purposes of Section 409A of the Code, the manner and time of payment, and the provisions of this Agreement, shall be adjusted to the extent necessary (but only to the extent necessary) to comply with the requirements of Section 409A with respect to such payment so that the payment does not give rise to the interest or additional tax amounts described at Section 409A(a)(1)(B) or Section 409A(b)(4) of the Code (the "Section 409A penalties"); and further provided that if, notwithstanding the immediately preceding proviso, the gross-up payment cannot be made to conform to the requirements of Section 409A of the Code, the amount of the gross-up payment shall be determined without regard to any gross-up for the Section 409A penalties.  The determination as to whether your payments and benefits include Excess Parachute Payments and, if so, the amount of such payments, the amount of any Excise Tax owed with respect thereto, and the amount of any gross-up payment shall be made at the Company's expense by Ernst & Young or by such other certified public accounting firm as the Company’s Board of Directors may designate (the "accounting firm").  Notwithstanding the foregoing, if the U.S. Internal Revenue Service shall assert an Excise Tax liability that is higher than the Excise Tax (if any) determined by the accounting firm, the Company shall promptly augment the gross-up payment to address such higher Excise Tax liability. 

The payments provided under this Agreement are intended to fall within either the separation pay exception or the short-term deferral exception to the application of Section 409A of the Code and the applicable guidance issued thereunder.  To the extent the benefits provided under the Agreement become subject to Code Section 409A and applicable guidance issued thereunder, the Agreement and Release shall be construed, and benefits paid hereunder, as necessary to comply with Code Section 409A and such guidance.  Notwithstanding the foregoing, to the extent any payments hereunder are not made in compliance with Code Section 409A or an exception thereto, any and all tax liability and penalties resulting from non-compliance with Code Section 409A shall remain your sole responsibility.

5.    Withholding.  All payments made by the Company under this Agreement shall be reduced by any tax or other amounts required to be withheld by the Company under applicable law and all other deductions authorized by you.  

6.    Acknowledgement of Full Payment.  You acknowledge and agree that the payments provided under paragraph 2 of this Agreement are in complete satisfaction of any and all compensation due to you from the Company, whether for services provided to the Company or otherwise, through the above date of this letter and that, except as expressly provided under this Agreement, no further compensation is owed to you.  Without limiting the generality of the foregoing, except as provided in paragraph 3 above, you expressly waive and relinquish any and all rights you have, or might have, to any bonus or other incentive compensation or other compensation, of any kind or description, under any plan or program of the Company. 

7.    Status of Employee Benefits and Paid Time Off.  Except as otherwise expressly provided in paragraph 3 of this Agreement, your participation in all employee benefit plans of the Company shall end as of the Separation Date, in accordance with the terms of those plans.  You will not continue to earn vacation or other paid time off after the Separation Date. 

8.    Confidentiality and Non-Disparagement.  You agree that you will continue to protect Confidential Information, as defined below, and that you will not, directly or indirectly, use or disclose it.  You also agree that you will not disclose this Agreement or any of its terms or provisions, directly or by implication, except to members of your immediate family and to your legal and tax advisors, and then only on condition that they agree not to further disclose this Agreement or any of its terms or provisions to others.  Further, you agree that, during the Severance Pay Period and thereafter, you will not disparage or criticize the Company or its Affiliates, their business, management or products, and that you will not otherwise do or say anything that could disrupt the good morale of Company employees 

or harm the interests or reputation of the Company, its directors, officers or employees, or any of its Affiliates and their respective directors, officers and employees.  The purpose of this Paragraph is to protect to the maximum extent permitted by law the protectable interests the Company has in its confidential and proprietary business information.  It is not intended to, and may not be construed to, prohibit or restrict you from initiating communications directly with, or responding to any inquiry from, or providing testimony before, any state or federal regulatory authority.  You are not required to notify the Company if you have made such reports or disclosures, or to secure the Company’s permission to do so.  Further, nothing in this Agreement will prevent you from cooperating with or participating in any investigation or proceeding by the Equal Employment Opportunity Commission (“EEOC”), the Massachusetts Commission Against Discrimination (MCAD) or any other federal, state or local governmental agency.  

9.    Return of Company Documents and Other Property.  In signing this Agreement, you agree that, except as necessary to provide services as contemplated by paragraph 1 above, you will return to the Company on or before the Separation Date any and all documents, materials and information related to the business of the Company or any of its Affiliates and all keys, access cards, credit cards, computer hardware and software, Blackberries, telephones and telephone-related equipment and all other property of the Company and its Affiliates in your possession or control.  Further, you represent and warrant that you have not retained any copy of any documents, materials or information of the Company or any of its Affiliates.  Recognizing that your performance of your duties for the Company is ending as of the Separation Date, you agree that, except as necessary to provide the Company with transition assistance as provided in paragraph 1 above, you will not thereafter, for any purpose, attempt to access or use any Company computer or computer network or system.  Further, you acknowledge that you have disclosed to the Company all passwords necessary or desirable to enable the Company to access all information which you have password-protected on any of its computer equipment or on its computer network or system.

10.    Restricted Activities.  You acknowledge that during your employment with the Company you have had access to Confidential Information which, if disclosed, would assist in competition against the Company and you agree that the following restrictions on your activities are necessary to protect the goodwill, Confidential Information and other legitimate interests of the Company:
(a)    Trade Secrets and Unfair Competition.  You acknowledge and agree that information, including but not limited to pricing information, customer buying and selling habits and special needs, customer credit information as well as the Company’s proprietary software, accounting records, marketing strategies, unique methods and procedures regarding pricing and advertising, employee personnel information, collection procedures, and payment histories, information relating to the Company’s Customers such as contract terms, products purchased from the Company and any other information relating to the Company or the Company’s Customers that has been obtained or made known to you solely as the result of your performing services for the Company, as well as the Company’s business plans, pending transactions, business strategy plans, sales figures, sales reports, internal memoranda, software developed by or for the benefit of the Company and related data source code and programming information (whether or not patentable or registered under copyright or similar statutes), copyrighted software and/or other copyrighted materials created by or for the benefit of the Company, personnel policies, the Company’s  marketing methods, plans and related data, accounting/financial records (including, but not limited to, balance sheets, profit and loss statements, tax returns, payable and receivable information, bank account information and other financial reporting information), the names of any of the Company’s vendors and/or suppliers, information relating to costs, sales or services provided to the Company by such vendors and suppliers, the prices the Company obtains or has obtained for the Company’s products or services, compensation paid to the Company’s employees and other terms of employment, information regarding the Company’s relations with its employees, and/or other confidential information regarding the manner of business operations and actual or demonstrably anticipated business, research or development of the Company or any other information that has or could have commercial value or other utility in the business in which the Company is engaged or in which the Company contemplates engaging and information, that, if disclosed without authorization, could be detrimental to the interests of the Company or its Customers, whether or not such information is identified as confidential information by the Company or its Customers, constitutes Confidential Information/Trade Secrets of the Company.  You agree that the sale or unauthorized use or disclosure of any of the Company’s Confidential Information/Trade Secrets obtained by you during your employment with the Company 

constitutes unfair competition.  You hereby promise not to engage in any unfair competition with the Company.
(b)    Covenant Not to Disclose The Company’s Trade Secrets or Confidential Information After Separation of Employment.  You hereby agree that you will not publish or disclose, subsequent to the date of this Agreement, any Confidential Information/Trade Secret as defined herein, or other confidential information including information or any other matter relating to the Company’s business that you may in any way have acquired through your employment with the Company.  All records, files, plans, documents and the like (whether in hard copy or electronic format of any nature) relating to the business of the Company which you have prepared, used, or come in contact with are and shall remain the sole property of the Company and shall not be copied without written permission of the Company and shall, as of the date of your execution of this Agreement, be returned to the Company as set forth in paragraph 9 above.  The purpose of this Paragraph is to protect to the maximum extent permitted by law the protectable interests the Company has in its confidential and proprietary business information.  It is not intended to, and may not be construed to, prohibit or restrict you from initiating communications directly with, or responding to any inquiry from, or providing testimony before, any state or federal regulatory authority.  You are not required to notify the Company if you have made such reports or disclosures, or to secure the Company’s permission to do so.  Further, nothing in this Agreement will prevent you from cooperating with or participating in any investigation or proceeding by the Equal Employment Opportunity Commission (“EEOC”), the Massachusetts Commission Against Discrimination (MCAD) or any other federal, state or local governmental agency.  
(c)    Covenant Not to Compete by Use of the Company’s Confidential Information/Trade Secrets After Separation of Employment.  You will not engage in competition with the Company, at any time after the above date of this Agreement, while making use of the Company’s Confidential Information/Trade Secrets or any other confidential matter relating to the Company’s business that you may have previously in any way acquired by reason of your employment with the Company.
(d)    Non-Recruiting Covenant.  You hereby agree that the Company has invested substantial time and effort in assembling its present personnel.  You agree that for a period of twenty-four (24) months following the above date of this Agreement, you will not directly or indirectly:  (i) recruit, or attempt to recruit, any other employee of the Company or its Affiliates; (ii) induce or attempt to induce any employee of the Company to terminate or cease employment with the Company; or (iii) otherwise employ any such employee of the Company.
(e)    Tolling and Suspension.  In the event that you breach any restrictive covenant contained in this Agreement, the running of the period of restriction shall automatically be tolled and suspended for the amount of time the breach continues, and shall automatically re-commence when the breach is remedied so that the Company shall receive the benefit of your compliance with the terms and conditions of this Agreement.
(f)    Restraints Necessary and Reasonable.  In signing this Agreement, you give the Company assurance that you have carefully read and considered all the terms and conditions of this Agreement, including the restraints imposed on you under this paragraph 10.  You agree without reservation that these restraints are necessary for the reasonable and proper protection of the Company and that each and every one of the restraints is reasonable in respect to subject matter, length of time and geographic area.  You further agree that, were you to breach any of the covenants contained in paragraph 8 or 9 above or of this paragraph 10, the damage to the Company would be irreparable.  You therefore agree that the Company, in addition to any other remedies available to it, shall be entitled to preliminary and permanent injunctive relief against any breach or threatened breach by you of any of those covenants, without having to post bond.  You also agree that in the event that Company prevails, in whole or in part, in any action to enforce this Agreement (whether for equitable relief, damages or both), you shall be liable to the Company for its reasonable attorneys’ fees and costs incurred in such action.  You and the Company further agree that, in the event that any provision of paragraph 8 or 9 above or of this paragraph 10 is determined by any court of competent jurisdiction to be unenforceable by reason of its being extended over too great a time, too large a geographic area or too 

great a range of activities, that provision shall be deemed to be modified to permit its enforcement to the maximum extent permitted by law.
(g)    Claw Back Provisions.  You acknowledge and agree that any remedy at law that the Company has for your breach of this Agreement would be inadequate and that the Company would be irreparably harmed by any actual or threatened breach thereof.  Therefore, you expressly agree and understand that in the event of your material breach of the provisions of paragraph 10 of this Agreement, the Company will be entitled, in addition to all actual and compensatory damages and relief (incurred by it in any action against you to enforce or remedy breach of any of the terms or conditions of this Agreement), to liquidated damages in the amount of all the consideration paid to you under this Agreement other than the Accrued Rights.  Accordingly, in the event of such a material breach you must immediately return to the Company any such consideration that you may have received under this Agreement, and the Company shall be entitled to cease payment of any promised consideration not yet paid.  You further acknowledge that your release of claims shall remain effective.

11.    Employee Cooperation.  You agree to cooperate with the Company hereafter with respect to all matters arising during or related to your employment, including but not limited to all matters in connection with any transition of duties to others, governmental investigation, litigation, or regulatory registrations, qualifications or proceedings or any other proceeding which may have arisen or which may arise following the signing of this Agreement.  The Company will reimburse you for your out-of-pocket expenses incurred in complying with Company requests hereunder, provided such expenses are authorized by the Company in advance.  In the event that such cooperation requires that you devote working time after the expiration of twenty-four (24) months following the Separation Date, the Company agrees to provide you with reasonable compensation for your services.
12.    Release of Claims.  
		
	(a)
	In exchange for the severance pay and other benefits provided you under this Agreement, to which you acknowledge that you would not otherwise be entitled, on your own behalf and that of your heirs, executors, administrators, beneficiaries, personal representatives and assigns, you agree that this Agreement shall be in complete and final settlement of any and all causes of action, rights or claims that you have had in the past, now have, or might now have, whether known or unknown, of any kind or description, including without limitation any causes of action, rights or claims in any way related to, connected with or arising out of your employment or its termination or pursuant to Title VII of the Civil Rights Act, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Massachusetts Fair Employment Act, the Massachusetts Wage Act, M.G.L. ch. 149 §§ 148, 150 et seq.; the Massachusetts Minimum Fair Wage Law, M.G.L. ch. 151; any claims that may be released under Massachusetts labor statutes, M.G.L. c. 149, or any other federal, state or local law, regulation or other requirement and you hereby release and forever discharge the Company and its Affiliates and all of their respective past and present directors, shareholders, officers, employees, general and limited partners, members, managers, agents and representatives, their successors and assigns, and all others connected with them, and all employee benefit plans maintained by the Company and all trustees and plan administrators of such plans, both individually and in the official capacities of each of the foregoing individually, from any and all such causes of action, rights or claims.  This release shall not apply to any claim for breach by the Company of its obligations under this Agreement.

		
	(b)
	This Agreement, including the release of claims set forth in the paragraph directly above, creates legally binding obligations and the Company has advised you to consult an attorney before signing this Agreement.  In signing this Agreement, you give the Company assurance that you have signed it voluntarily and with a full understanding of its terms; that you have had sufficient opportunity, before signing this Agreement, to consider its terms and to consult with any of those persons to whom reference in made in the second sentence of paragraph 8 above; that you have consulted with an attorney of your choosing; and that, in signing this Agreement, you have not relied on any promises or representations, express or implied, that are not set forth expressly in this Agreement.

		
	(c)
	You hereby acknowledge and understand that this is a General Release and by signing this Agreement you are giving up your rights to file any claim in any court and to seek and/or receive any form of compensation

 arising from your employment or separation from employment.  You acknowledge that this Agreement does not act as a waiver or release of any complaints or charges that you cannot by law waive or release and that it does not waive any rights that arise after you sign this Agreement.  
		
	(d)
	You further acknowledge that this Agreement does not prohibit you from:  (i) filing a charge or complaint with the EEOC, MCAD or any other state or federal agency, or (ii) participating in or cooperating with any investigation or proceeding conducted by the, EEOC, MCAD or any other federal, state or local governmental agency.  

13.     Definitions.  As used in this Agreement:
“Affiliates” means any and all persons and entities controlling, controlled by or under common control with the Company, where control may be by management authority or equity interest.
"Confidential Information" means any and all information of the Company and its Affiliates that is not generally known to the public including, without limitation, all strategic business plans, marketing and sales data and information, all financial, technical personnel, manufacturing, operations, product and systems information.  Confidential Information also includes all information received by the Company or any of its Affiliates from customers or other third parties with any understanding, express or implied, that the information would not be disclosed. 
“Person” means an individual, a corporation, a limited liability company, an association, a partnership, an estate, a trust or any other entity or organization, other than the Company or any of its Affiliates.

14.    Miscellaneous.  
		
	(a)
	This Agreement constitutes the entire agreement between you and the Company relating to the termination of your employment with the Company by reason of your retirement and supersedes all prior and contemporaneous communications, agreements and understandings whether written or oral, with respect to your employment, its termination and all related matters, excluding only:  (i) the Executive Change in Control Termination Agreement between you and the Company; and (ii) your obligations with respect to the securities of the Company and for compliance with federal securities laws, all of which shall remain in full force and effect in accordance with their terms. 

		
	(b)
	This Agreement may not be modified or amended, and no breach shall be deemed to be waived, unless agreed to in writing by you and the Chief Executive Officer of the Company or his expressly authorized designee.  The captions and headings in this Agreement are for convenience of reference only and in no way define or describe the scope or content of any provision of this Agreement.   This is a Delaware contract and shall be governed and construed in accordance with the laws of the State of Delaware, without regard to the conflict-of-law principles thereof.

		
	(c)
	If the duration of, scope of, or any business activity covered by this Agreement is in excess of what is valid and enforceable under applicable law, such provision will be construed to cover only that duration, scope, or activity that is valid and enforceable.  You acknowledge that this paragraph 15(c) will be given the construction which renders its provisions valid and enforceable to the maximum extent, not exceeding its express terms, possible under applicable laws.

		
	(d)
	The obligations of the Company under paragraph 3 of this Agreement are expressly conditioned upon your continued full performance of your obligations under this Agreement.

		
	(e)
	There shall be no right of set-off or counterclaim in respect of any claim, debt or obligation against any payments to you, your dependents, beneficiaries or estate, provided for in this Agreement.

		
	(f)
	No right, benefit or interest hereunder shall be subject to anticipation, alienation, sale, assignment, encumbrance, charge, pledge, hypothecation, or set-off in respect of any claim, debt or obligation, or to execution, attachment, levy or similar process, or assignment by operation of law.  Any attempt, voluntary or involuntary, to effect any action specified in the immediately preceding sentence shall, to the full extent permitted by law, be null, void and of no effect.

		
	(g)
	No right or interest to or in any payments shall be assignable by you; provided, however, that this provision 

shall not preclude you from designating one or more beneficiaries to receive any amount that may be payable after your death and shall not preclude the legal representative of your estate from assigning any right hereunder to the person or persons entitled thereto under your will or, in the case of intestacy, to the person or persons entitled thereto under the laws of intestacy applicable to your estate.
		
	(h)
	The Company agrees that to the extent that its obligations hereunder remain unfulfilled, it shall require that any entity with which it merges or consolidates or to which it agrees to transfer substantially all of its assets expressly assume the obligations of the Company under this Agreement (including exercise of options vested pursuant to paragraph 3(f) above by a successor or award of substituted options by such) and that any successor or successors of such an entity, whether by merger, consolidation or transfer of assets, also expressly assume all such obligations.  Notwithstanding the foregoing, the Company shall not be deemed to have breached its obligations under this subparagraph 15(h) if it negotiates with any successor entity to provide a substitute agreement on terms (which may be different than the terms herein) that are reasonably acceptable to you.

16.    Review, Rescission and Revocation.  You understand that you have twenty-one (21) days from the above date of this letter to consider whether you wish to sign this Agreement.  After signing this Agreement, you may rescind/revoke this Agreement within seven (7) days of signing.  Any rescission or revocation must be in writing, and must be delivered by hand or sent by certified mail, return receipt requested, and postmarked within the fifteen-day period to John J. Murphy, Senior Vice President Human Resources Entegris, Inc., 129 Concord Road, Building 2, Billerica, MA  01821.  If you do not execute this Agreement within the twenty one (21) day consideration period, or if you rescind/revoke it, then this Agreement is null and void and no consideration under this Agreement will be provided to you. 

If the terms of this Agreement are acceptable to you, please sign, date and return it to me within twenty one (21) days following the above date of this letter.  The enclosed copy of this letter, which you should also sign and date, is for your records.
 Sincerely,
ENTEGRIS, INC.

/s/ Bertrand Loy
Bertrand Loy
President & Chief Executive Officer

Accepted and agreed:

Signature:  /s/ Peter W. Walcott                 
Date:  2-3-2016

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