Document:

exh_1018.htm

Exhibit 10.18

 

 

 

TRANSACTION AND PERFORMANCE BONUS AGREEMENT

 

 

 

This Transaction and Performance Bonus Agreement (“Agreement”) is being entered into this 3rd day of March 2014 (the “Effective Date”) by and between Charles L. Kelly, Jr. (“Employee”) and Medical Action Industries Inc. (“MAI” or “the Company”).  MAI has or is expected to announce that on or about the second quarter of 2014 MAI will close on the sale of the “Units” and “Assets” constituting the “Business,” in each case, as defined in that certain Purchase Agreement to be entered into between MAI and a subsidiary of Inteplast Group Inc. (the “Buyer”).  MAI desires the services of Employee to assist with the transition of the Business to the Buyer through the date of closing. Therefore, MAI will offer certain bonus opportunities on the conditions set forth below:

 

 

	 	
1.

	Except as otherwise provided herein, the term of this Agreement will be from the Effective Date until the closing date of the sale (the “Closing Date”) of the Business, unless earlier terminated as provided below.
	 	 	 
	 	 	 	 	 
	 	 	 
	 	
2. 

	During the term of this Agreement, Employee will continue to devote his entire business skill, time, and effort diligently to the affairs of MAI and will perform all such duties, and otherwise conduct himself, in a manner reasonably determined to promote the best interests of the Company.
	 	 	 	 	 
	 	 	 
	 	
3. 

	Notwithstanding any other provision of this Agreement, Employee’s eligibility to receive the Bonuses (as defined below) under this Agreement is expressly contingent on the closing of the sale of the Business to the Buyer on or before July 1, 2014. If the sale of the Business is not closed before July 1, 2014, Employee shall not be eligible to receive any Bonus pursuant to this Agreement and this Agreement shall terminate on July 1, 2014.
	 	 	 	 	 
	 	 	 
	 	
4. 

	Bonus Eligibility
	 	 	 	 	 
	 	 	
a. 

	
In addition to the requirements in Section 3 above, Employee must satisfy the requirements of Sections 5 and 6 below in order to be eligible for the following Transaction and/or Performance Bonus:

	 	 	 	 

 

  

  

  

 

	 	 	 	
(1) 

	
Performance Bonus – If MAI’s Patient Care Strategic Business Unit achieves $9.1 million or more in operating income for the fiscal year ending March 31, 2014; and the sale of the Business occurs before July 1, 2014, the Employee will receive a performance bonus in the amount of $131,750 (the “Performance Bonus”).

	 	 	 	 	 
	 	 	 	
(2) 

	
Transaction Bonus – If the sale of the Business occurs before July 1, 2014, and the Employee is still employed as of the Closing Date, the Employee will receive a transaction bonus in the amount of $150,000 (the “Transaction Bonus”).

	 	 	 	 	 
	 	 	 	 
	 	 	 	
As used in this Agreement, the term “Bonus” refers, individually, to the Performance Bonus or the Transaction Bonus and the correlative term “Bonuses” refers, collectively, to the Performance Bonus and the Transaction Bonus.

	 	 	 	 
	 	 	 	 	
  

	 	 	
b. 

	
If Employee is eligible for one or both Bonuses, it will be paid on the Closing Date in a lump sum from proceeds of purchase price received by MAI from the sale of the Business.

	 	 	 	 
	 	 	 	 	 
	 	 	
c. 

	
If payable, the Transaction and/or Performance Bonus will not be included in determining the amount of any benefits under any of the Company’s qualified or nonqualified employee benefit plans in which Employee may be a participant.

	 	 	 	 
	 	 	 	 	 
	 	

5. 

	To be eligible for either Bonus, Employee must execute and deliver to the Company a General Release of Claims (“General Release”) in the form attached hereto as Exhibit 1 or in such other form as the Company reasonably determines appropriate. Employee understands that he shall sign the General Release no earlier than the closing of the sale of the Business to the Buyer, when Employee’s employment with MAI shall terminate.
	 	 	 
	 	 	 	 	 
	 	

6. 

	In further consideration for the benefits described in Section 4 above, Employee agrees to the following:
	 	 	 
	 	 	 	 	 
	 	 	
a. 

	
Return of Property. Employee agrees to return to the Company all Company files, manuals, reports and other documents and property of the Company (including, but not limited to, cell phone, credit cards, laptop, PDAs and keys) that relate to MAI’s remaining business following the Closing Date in Employee’s possession, custody, and control and/or in the possession of any person or entity acting on Employee’s behalf and to not retain copies of any such materials

	 	 	 	 
	 	 	 	 	 
	 	 	
b.

	
Proprietary and Confidential Information. Employee agrees that he is aware of confidential information such as, but not limited to price and cost data, business plans, customer lists, product designs, configurations and specifications, proprietary or secret processes or methods, whether now or hereafter perfected, whether patentable or not, relating to the Company's remaining business following the Closing Date. Employee agrees that such confidential information is the property of the Company. Employee agrees that he will not use or disclose to any person any such confidential information unless requested to do so by an officer of the Company or by legal process, and that Employee will not disclose or use any such information for his own benefit in competing with the Company, or to any person who is engaged in business (as) in which the Company is also engaged.

	 	 	 	 	 

 

  

  

  

 

	 	 	
c.

	
Non-Compete. Employee agrees that for a period of two (2) years following his Termination Date, he will not accept employment with, provide advice, consulting services, or in any other capacity work for or provide services to any person, firm or entity in the United States that directly competes with MAI’s remaining business following the Closing Date.

	 	 	 	 
	 	 	 	 	 
	 	 	
d.

	
Non-Solicitation.

	 	 	 	 
	 	 	 	 	 
	 	 	 	
(i) 

	
Employee agrees that for a period of two (2) years following his Termination Date, he will not solicit or service orders for the purchase of products similar to those manufactured/sold by MAI’s remaining business following the Closing Date to any person, firm, or entity which was a customer or prospective customer of the Company at any time during the one year preceding termination of employment.

	 	 	 	 	 
	 	 	 	
(ii) 

	
Employee agrees that for a period of two (2) years following his Termination Date, he will not solicit or service orders for the purchase of products similar to those manufactured/sold by MAI’s remaining business following the Closing Date to any person, firm, or entity to whom he solicited or serviced orders on behalf of the Company during the one year preceding termination of employment.

	 	 	 	 	 
	 	 	 	 	 
	 	 	
e.

	
No Raiding. Employee agrees that for a period of two (2) years following his Termination Date, he will not directly or indirectly, on behalf of himself or for any other entity, business or person, hire, entice, induce, solicit or attempt to hire, entice, induce or solicit any employee of MAI to leave the Company's employ or to cause any employee of the Company to become employed in any business which is competitive with the Company’s remaining business following the Closing Date for any reason whatsoever.

	 	 	 	 
	 	 	 	 	 
	 	 	
f.

	
The Company’s obligation to make any payments pursuant to this Agreement shall cease if Employee violates this paragraph of this Agreement. The parties agree that Employee becoming employed by the Buyer will not constitute a violation of this paragraph.

	 	 	 	 

 

  

  

  

 

	 	 	
g.

	
Employee acknowledges that damages are an inadequate remedy for any breach of the terms and conditions set forth in this paragraph of this Agreement and agrees that, in the event of a breach of this paragraph, the Company may, with or without pursuing any remedy for damages, immediately obtain and enforce an ex parte, preliminary and permanent injunction prohibiting Employee from violating this paragraph. Further, in any civil action brought for a breach of this Agreement, the prevailing party shall be entitled to recover from the other party, all reasonable attorneys’ fees, litigation expenses, and costs incurred by the prevailing party.

	 	 	 	 
	 	 	 	 	 
	 	
7. 

	Employee acknowledges that during the due diligence period of the sale of the Business Employee has provided complete and truthful information concerning the Business and its operations, including as to any liabilities or potential liabilities of which he is aware. With respect to areas of operations of which Employee has personal knowledge, Employee acknowledges that all representations and/or warranties provided by MAI to the Buyer are accurate and complete.
	 	 	 
	 	 	 	 	 
	 	
8. 

	The payment of any benefits under this Agreement will be in lieu of, and not in addition to, any separation or severance benefits to which Employee may otherwise be entitled from the Company. In addition, no provision of this Agreement will require the Company to provide Employee with any payment, benefit, or grant that duplicates any payment, benefit or grant that Employee is entitled to receive under any Company compensation or benefit plan or other agreement or arrangement.
	 	 	 
	 	 	 	 	 
	 	
9. 

	Nothing in this Agreement shall be construed as a right to continued employment with the Company and nothing in this Agreement limits the Company’s right to terminate Employee’s employment with the Company at any time (including prior to the Closing Date) with or without cause or notice. The term of this Agreement shall end on Employee’s last day of employment if the term has not already ended.
	 	 	 
	 	 	 	 	 
	 	
10. 

	Failure to insist upon strict compliance with any of the terms, covenants, or conditions of this Agreement will not be deemed a waiver of such term, covenant, or condition, nor will any waiver or relinquishment of any right or power hereunder at any one or more times be deemed a waiver or relinquishment of such right or power at any other time or times.
	 	 	 
	 	 	 	 	 
	 	
11. 

	The Company may withhold from any benefits payable under this Agreement all taxes, deductions, and withholdings that the Company determines to be required pursuant to any law, regulation, or ruling. However, it is Employee’s obligation to pay all required taxes on any amounts provided under this Agreement, regardless of whether withholding is required.
	 	 	 
	 	 	 	 	 
	 	
12. 

	Except to the extent otherwise required by law, Employee will not disclose, in whole or in part, any of the terms of this Agreement. However, Employee may disclose the terms of this Agreement to his spouse and to his legal or financial advisor, provided that Employee takes all reasonable measures to assure that he or she does not disclose the terms of this Agreement to a third party except as otherwise required by law. In addition, notwithstanding anything in this paragraph to the contrary, Employee may disclose to any and all persons, without limitation or any kind, the tax treatment and tax structure of the transaction and all materials of any kind (including opinions and other tax analyses) that are provided to Employee relating to such tax treatment and tax structure.
	 	 	 

 

  

  

  

 

	 	
13. 

	The provisions contained in this Agreement and within the General Release will each constitute a separate agreement independently supported by good and adequate consideration, and will each be severable from the other provisions of the Agreement and the General Release. If a court of competent jurisdiction or an arbitrator determines that any term, provision, or portion of this Agreement or the General Release is void, illegal, or unenforceable, the other terms, provisions, and portions of this Agreement and General Release will remain in full force and effect, and the terms, provisions, and portions that are determined to be void, illegal, or unenforceable will either be limited so that they will remain in effect to the extent permissible by law, or such court or arbitrator will substitute, to the extent enforceable, provisions similar thereto or other provisions, so as to provide to the Company and Employee, to the fullest extent permitted by applicable law, the benefits intended by this Agreement and the General Release.
	 	 	 
	 	 	 	 	 
	 	
14. 

	The provisions of this Agreement as well as the General Release shall survive the termination of this Agreement according to their terms.
	 	 	 
	 	 	 	 	 
	 	
15. 

	This Agreement sets forth the entire understanding between Employee and the Company with respect to the Bonuses, and supersedes all prior agreements and communications, whether oral or written, between Employee and the Company regarding such matters. This Agreement may not be modified except by the written agreement of Employee and the Company.
	 	 	 
	 	 	 	 	 
	 	
16. 

	Employee acknowledges that he has read and understands this Agreement and executes it voluntarily and without coercion. Employee further acknowledges that he has been advised in writing of his opportunity to consult with counsel and that he has been given a more than sufficient period of time to consider the terms of this Agreement.
	 	 	 
	 	 	 	 	 
	 	
17. 

	In the event of any dispute over the interpretation, application, or performance of this letter of understanding that the law of the State of New York will apply in resolving such dispute(s).
	 	 	 
	 	 	 	 	 
	 	
18. 

	Any controversy or claim arising out of or relating to this Agreement shall be settled by arbitration in accordance with the rules of the American Arbitration Association in Suffolk County, New York, and judgment upon the award rendered in such arbitration may be entered in any court having jurisdiction thereof. The foregoing shall not be construed so as to limit the Company’s right to injunctive relief provided for in Paragraph 6(g) above.

 

 

  

  

  

Agreed to and accepted this 3rd day of March, 2014.

 

 

	/s/ Charles L. Kelly, Jr.	 	03/03/14	 
	Employee: Charles L. Kelly, Jr. 	Date	 
	 	 	 	 
	 	 	 	 
	/s/ Paul Chapman	 	03/03/14	 
	Medical Action Industries Inc. 	Date	 

 

 

 

  

  

  

EXHIBIT 1

 

 

GENERAL RELEASE

In exchange for the Company’s promises in the Transaction and Performance Bonus Agreement between me and Medical Action Industries Inc., its subsidiaries, and affiliate companies (collectively, the “Company”) dated March 3, 2014 (the “Agreement”), I hereby release and discharge the Company, its affiliated companies, and its or their current and former employees, agents, directors, officers, assigns, attorneys, shareholders and all other related persons from any and all suits, charges, demands, causes of action, and/or claims of whatever nature, whether known, unknown, or unforeseen, that I have or may have against the Company arising out of or in any way related to my employment and its termination, the Transaction and Performance Bonus Agreement, or any event, transaction, or matter occurring or existing on or before the date of my signing of the General Release. I agree, without limiting the generality of this release, that this release of claims includes, but is not limited to: any rights or claims that I may have arising out of federal, state, or local employment laws (such as, for example, the National Labor Relations Act, Title VII of the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, Section 1981 of the Civil Rights Act of 1866, the Age Discrimination in Employment Act of 1967, the Uniformed Services Employment and Reemployment Rights Act (USERRA), the Americans With Disabilities Act as amended by the Americans with Disabilities Act Amendments Act (ADAAA), the Family Medical Leave Act (FMLA), the Employee Retirement Income Security Act (ERISA), the Tennessee Human Rights Act, Tenn. Code Ann. §§ 4-21-401 et seq., the West Virginia Human Rights Act, the New York Human Rights Law, and any similar federal, state, or local statute); claims under the Worker Adjustment Retraining and Notification Act, or any other applicable federal, state, or local statute relating to payment of wages, claims concerning recruitment, hiring, termination, salary rate, severance pay, retention benefits, wages or benefits due, sick leave, vacation pay, life insurance, group medical insurance, any other fringe benefits of the Company; claims for intentional or unintentional tort claims, including but not limited to, libel, slander, defamation, intentional or negligent misrepresentation, abusive or wrongful discharge, fraud or misrepresentation, retaliation and/or whistleblower claims and/or infliction of emotional distress, together with any and all tort, contract, or other claims which might have been asserted by me or on my behalf in any suit, charge, demand, cause of action, or claim against the persons or entities released in this paragraph. I further hereby irrevocably and unconditionally waive any and all rights to recover any relief or damages concerning the suits, charges, demands, causes of action, or claims that are lawfully released in this paragraph. I represent and warrant that I have not previously filed or joined in any such suits, charges, demands, causes of action, or claims against the person or entities released in this paragraph.

 

 

I expressly acknowledge and agree that the foregoing release is a GENERAL RELEASE.

 

  

  

  

I agree that my decision to execute this General Release is knowing and voluntary and based only on the terms of the Transaction and Performance Bonus Agreement and this General Release, and not on any other promises or representations of any kind whatsoever. I acknowledge that I am being encouraged by the Company to consult with an attorney prior to executing this General Release. I further acknowledge that I have a period of twenty-one (21) days to consider and review this General Release. Moreover, for a period of seven (7) days following my execution of this General Release, I will have the right to revoke it under the Age Discrimination in Employment Act, a federal statute that prohibits employers from discrimination against employees who are age 40 or over. If I elect to revoke this agreement within this seven-day period, I understand that I must inform the Company by delivering a written notice of revocation to Monika Goedel, Director of Corporate Administration, Medical Action Industries Inc., 500 Expressway Drive South, Brentwood, NY 11717, no later than 11:59 p.m. on the seventh calendar day after I sign the General Release. However, if I elect to exercise this revocation right, I understand that the Company will be relieved of its obligations under the Transaction and Performance Bonus Agreement to make any payments to me. I may, if I wish, elect to sign this General Release prior to the expiration of the 21-day consideration period, and I agree that if I elect to do so, such election is knowing and voluntary and comes after full opportunity to consult with counsel.

 

 

I understand that I may not sign this General Release earlier than the closing of the sale of the Business to the Buyer (as such terms are defined in the Agreement), when my employment shall terminate.

 

 

	Dated: 	 	 	 	 
	 	 	 	 	 
	 	 	 	

Charles L. Kelly, Jr.EX-10.1

 Exhibit 10.1 
  

 
 DIVESTURE AND EXCHANGE AGREEMENT 

by and between 
 CLEANTECH
INNOVATIONS, INC. 
 and 
 the
Shareholders listed on Exhibit A attached hereto. 
  
  

June 11, 2014 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	Page	 
		
	 ARTICLE 1 DEFINITIONS
	  	 	1	  
	 Section 1.01.
	  	 General
	  	 	1	  
	 ARTICLE 2 CONDITIONS PRECEDENT
	  	 	4	  
	 Section 2.01.
	  	 Actions as of the Effective Date
	  	 	4	  
	 Section 2.02.
	  	 Financial Instruments
	  	 	4	  
	 Section 2.03.
	  	 Intercompany Accounts and Agreements
	  	 	4	  
	 Section 2.04.
	  	 Control of Creative Bellows
	  	 	5	  
	 Section 2.05.
	  	 Intentionally Omitted
	  	 	5	  
	 Section 2.06.
	  	 Conditions Precedent to the Obligations of CTek
	  	 	5	  
	 Section 2.07.
	  	 Conditions Precedent to the Obligations of the Shareholders
	  	 	5	  
	 Section 2.08.
	  	 Announcements and Filings
	  	 	6	  
	 ARTICLE 3 THE DISTRIBUTION
	  	 	6	  
	 Section 3.01.
	  	 Securities to be Purchased
	  	 	6	  
	 Section 3.02.
	  	 Consideration
	  	 	6	  
	 Section 3.03.
	  	 Distribution and Delivery of Creative Bellows and Shareholder Stock
	  	 	6	  
	 Section 3.04.
	  	 Distribution Date
	  	 	7	  
	 ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS
	  	 	7	  
	 Section 4.01.
	  	 Authorization; Enforceability
	  	 	7	  
	 Section 4.02.
	  	 No Violation or Conflict
	  	 	7	  
	 Section 4.03.
	  	 Consent of Governmental Authorities
	  	 	7	  
	 Section 4.04.
	  	 No Encumbrances
	  	 	7	  
	 ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF CTEK
	  	 	8	  
	 Section 5.01.
	  	 Organization; Standing and Power
	  	 	8	  
	 Section 5.02.
	  	 Authorization; Enforceability
	  	 	8	  
	 Section 5.03.
	  	 No Violation or Conflict
	  	 	8	  
	 Section 5.04.
	  	 Consent of Governmental Authorities
	  	 	8	  
	 Section 5.05.
	  	 Validity of Securities
	  	 	8	  
	 ARTICLE 6 RELEASE; INDEMNIFICATION; EXPENSES
	  	 	9	  
	 Section 6.01.
	  	 Releases
	  	 	9	  
	 Section 6.02.
	  	 Indemnification by Shareholders
	  	 	10	  
	 Section 6.03.
	  	 Indemnification by CTek
	  	 	10	  
	 Section 6.04.
	  	 Remedies Cumulative
	  	 	10	  
	 ARTICLE 7 ADDITIONAL AGREEMENTS
	  	 	10	  
	 Section 7.01.
	  	 Confidentiality
	  	 	10	  
	 Section 7.02.
	  	 Notification
	  	 	11	  
	 Section 7.03.
	  	 Further Assurances
	  	 	11	  
	 Section 7.04.
	  	 Investigation
	  	 	11	  
	 ARTICLE 8 MISCELLANEOUS
	  	 	11	  
	 Section 8.01.
	  	 Entire Agreement
	  	 	11	  
	 Section 8.02.
	  	 Governing Law
	  	 	11	  
	 Section 8.03.
	  	 Notices
	  	 	11	  
	 Section 8.04.
	  	 Submission to Jurisdiction
	  	 	12	  

							
	 Section 8.05.
	  	 Amendments
	  	 	13	  
	 Section 8.06.
	  	 Assignment
	  	 	13	  
	 Section 8.07.
	  	 Headings
	  	 	13	  
	 Section 8.08.
	  	 Severability
	  	 	13	  
	 Section 8.09.
	  	 Binding Effect
	  	 	13	  
	 Section 8.10.
	  	 Schedules
	  	 	13	  
	 Section 8.11.
	  	 Termination
	  	 	13	  
	 Section 8.12.
	  	 Waivers; Remedies
	  	 	14	  
	 Section 8.13.
	  	 Further Assurances
	  	 	14	  
	 Section 8.14.
	  	 Counterparts
	  	 	14	  
	 Section 8.15.
	  	 Interpretation
	  	 	14	  
	 Section 8.16.
	  	 Third Party Beneficiaries
	  	 	14	  

  
 ii 

 EXHIBITS AND SCHEDULES 
  

			
	Exhibit A:	  	List of Shareholders
	Exhibit B:	  	Form of Irrevocable Proxy
	Exhibit C:	  	Form of Escrow Agreement
	Exhibit D:	  	Form of Release
	Schedule I:	  	Distribution of Creative Bellows Ownership Interests

  
 iii 

 DIVESTURE AND EXCHANGE AGREEMENT 

This DIVESTURE AND EXCHANGE AGREEMENT (this “Agreement”) is dated June 11, 2014 (the “Effective Date”) by and between
CLEANTECH INNOVATIONS, INC., a Nevada corporation with its principal executive offices located at C District, Maoshan Industry Park, Tieling Economic Development Zone, Tieling, Liaoning Province, China 112616 (“CTek”) and the individual
Shareholders set forth on Exhibit A attached hereto (the “Shareholders”). Capitalized terms used in this Agreement shall have the meanings ascribed in Section 1.01. 

WHEREAS, the CTek Board has determined that it is appropriate and desirable to explore a strategic reorganization and/or business
opportunities under the direction of Mr. Terry McEwen (“McEwen”); and 
 WHEREAS, in furtherance of the foregoing, the CTek
Board has determined that it is appropriate and desirable to transfer ownership of its wholly-owned subsidiary, Liaoning Creative Bellows Co., Ltd. (“Creative Bellows”), incorporated in the province of Liaoning in the People’s
Republic of China, which, in turn, wholly owns Liaoning Creative Wind Power Equipment Co., Ltd., incorporated in the province of Liaoning in the People’s Republic of China, which CTek Subsidiaries collectively represent all of CTek’s
China-based business, to the Shareholders or their designees as more fully described in this Agreement; and 
 WHEREAS, subject to the terms
and conditions contained herein, concurrently with the Distribution, the Shareholders will transfer all of the CTek Common Stock held by each of them (the “Shareholder Stock”, which amounts are set forth on Exhibit A attached
hereto) to CTek as more fully described in this Agreement (the “Contribution”); and 
 WHEREAS, in consideration for the
consummation of the transactions contemplated herein, certain of CTek’s creditors are willing to waive and release and cause to be waived and released any outstanding indebtedness owed by CTek to such creditors as more fully described in this
Agreement and the Forbearance Agreement; and 
 WHEREAS, the parties hereto have determined that it is appropriate and desirable to set
forth the principal corporate transactions required to effect the Contribution and the Distribution and certain other agreements that will govern certain matters relating to the Contribution and the Distribution and the relationship of the parties
prior to and following the Contribution and the Distribution. 
 NOW, THEREFORE, in consideration of the premises and of the respective
agreements and covenants contained in this Agreement, the parties hereby agree as follows: 
 ARTICLE 1 

DEFINITIONS 
 Section 1.01.
General. As used in this Agreement, the following terms shall have the meanings set forth below (such meanings to be equally applicable to both the singular and plural forms of the terms defined): 

“Affiliate” means, with respect to any specified Person, any other Person that directly, or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with, such specified Person; provided, however, that following the Distribution, neither CTek nor any CTek Subsidiary shall be deemed to be an Affiliate of any member of the
Creative Bellows Group and neither Creative Bellows nor any Creative Bellows Subsidiary shall be deemed to be an Affiliate of any member of the CTek Group. For purposes of the immediately preceding sentence, the term “control” (including,
with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through ownership of voting securities, by contract or otherwise. 

 “Agreement” shall have the meaning set forth in the preamble. 

“Business Day” means any day other than a Saturday, Sunday or other day when banks are authorized or required by law to be closed in
New York. 
 “Claims” shall have the meaning set forth in Section 6.02. 

“Commission” means the Securities and Exchange Commission. 

“Consents” means consents, approvals, waivers, clearances, exemptions, allowances, novations, authorizations, filings, registrations
and notifications. 
 “Contribution” shall have the meaning set forth in the recitals. 

“Creative Bellows Board” means the Board of Directors of Creative Bellows. 

“Creative Bellows Group” means Creative Bellows and the Creative Bellows Subsidiaries. 

“Creative Bellows Subsidiary” means each wholly-owned subsidiary of Creative Bellows. 

“CTek” shall have the meaning set forth in the recitals. 

“CTek Board” means the Board of Directors of CTek or a duly authorized committee thereof. 

“CTek Common Stock” means the common stock of CTek, par value $.00001 per share. 

“CTek Group” means CTek and the CTek Subsidiaries. 

“CTek Indemnitees” shall have the meaning set forth in Section 6.02. 

“CTek Subsidiary” means each Subsidiary of CTek other than Creative Bellows and the Creative Bellows Subsidiaries. 

  
 2 

 “Distribution” means the transfer on the Distribution Date and as provided for in
Article 3, of (i) the ownership of Creative Bellows owned by CTek to the Shareholders and (ii) the Shareholder Shares to CTek. 

“Distribution Date” means the date as of which the condition precedent to the Distribution have been satisfied or waived and on
which the Distribution will be effected. 
 “Effective Date” shall have the meaning set forth in the recitals. 

“Escrow Agent” means the escrow agent set forth in the Escrow Agreement. 

“Escrow Agreement” means that certain Escrow Agreement to be executed by the parties hereto and the Escrow Agent, a form of which is
attached hereto as Exhibit C. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Governmental Entity” means any government or any court, arbitral tribunal, administrative agency or commission or other
governmental or regulatory authority or agency, federal, state, local, domestic, foreign or international. 
 “Liabilities” means
any and all claims, debts, liabilities, commitments and obligations of whatever nature, whether fixed, contingent or absolute, matured or unmatured, liquidated or unliquidated, accrued or not accrued, known or unknown, due or to become due, whenever
or however arising and whether or not the same would be required by generally accepted accounting principles to be reflected as a liability in financial statements or disclosed in the notes thereto. 

“Lien” means any lien, security interest, pledge, mortgage, charge, restriction, retention of title agreement or other encumbrance
of whatever nature. 
 “McEwen” shall have the meaning set forth in the recitals. 

“NASDAQ” means the NASDAQ Stock Market. 

“Permits” means licenses, permits, authorizations, Consents, certificates, registrations, variances, franchises and other approvals
from any Governmental Entity, including those relating to environmental matters. 
 “Person” means any individual, partnership,
joint venture, corporation, limited liability entity, trust, unincorporated organization or other entity (including a Governmental Entity). 

“Release” means that certain Release and Waiver Agreement, a form of which is attached hereto as Exhibit D. 

“Representative” means, with respect to any Person, any of such Person‘s directors, managers, officers, employees, agents,
consultants, advisors, accountants, attorneys and representatives. 

  
 3 

 “Shareholder(s)” shall mean each Shareholder and all of the Shareholders. 

“Shareholder Indemnified Parties” shall have the meaning set forth in Section 6.03. 

“Shareholder Stock” shall have the meaning set forth in the recitals. 

“Subsidiary” means, with respect to any Person, any corporation or other organization, whether incorporated or unincorporated, of
which such Person or any Subsidiaries of such Person controls or owns, directly or indirectly, more than 50% of the stock or other equity interest, or more than 50% of the voting power entitled to vote on the election of members to the board of
directors or similar governing body. 
 ARTICLE 2 

CONDITIONS PRECEDENT 

Section 2.01. Actions as of the Effective Date. 

(a) On or prior to the Effective Date: 

(i) Each Shareholder shall deliver to Mr. Terry McEwen (“McEwen”) an irrevocable proxy in form and substance
substantially identical to the Form of Proxy attached as Exhibit B hereto, granting a proxy to McEwen or his designee to vote the Shareholder Stock; 

(ii) Each party to this Agreement and Escrow Agent shall have executed and delivered the Escrow Agreement; 

(iii) CTek shall deposit into escrow with Escrow Agent all (100%) of the ownership interests in Creative Bellows, or such
documentation as may be required to transfer such ownership interests in accordance with the terms hereof; 
 (iv) The
Shareholders shall deposit into escrow with Escrow Agent all (100%) of the Shareholder Stock; and 
 (v) The Forbearance
Agreement shall have been executed by the parties thereto. 
 Section 2.02. Financial Instruments. Each of CTek and the
Shareholders represent and warrant that CTek is not a guarantor of any of Creative Bellow’s Liabilities or the Liabilities of any other CTek Subsidiary. 

Section 2.03. Intercompany Accounts and Agreements. Each of CTek and the Shareholders represent and warrant that CTek does not
maintain any intercompany accounts with any of Creative Bellow’s Liabilities or the Liabilities of any other CTek Subsidiary, and is not a party to any intercompany agreements with any of the foregoing. 

  
 4 

 Section 2.04. Control of Creative Bellows. 

(a) Control of Creative Bellows shall be immediately and automatically transferred to the Shareholders upon the consummation of
each of the actions specified in Section 2.01. Each of CTek and the Shareholders shall take such actions and execute such documents as may be reasonably requested by any of them to effect such transfer as specified in Section 2.01(iv).

 (b) CTek hereby (i) appoints Ms. Bei Lu as CTek’s true and lawful proxy and attorney-in-fact in the name
and on behalf of CTek, with full power to appoint a substitute or substitutes, to vote and execute and deliver written voting consents with respect to the entirety of CTek’s ownership of Creative Bellows, to the extent and with the same effect
such owner could do under any applicable laws or regulations governing the rights and powers of the owner of the Creative Bellows and (ii) hereby appoints Ms. Bei Lu to the Creative Bellows Board. 

(c) CTek will promptly form a wholly-owned British Virgin Islands (“BVI”) company, and will effect a transfer of
ownership to the BVI company such that the BVI Company will own all (100%) of the equity in Creative Bellows. The equity of the BVI Company will then be immediately transferred to the Shareholders in accordance with the terms hereof. 

Section 2.05. Intentionally Omitted. 

Section 2.06. Conditions Precedent to the Obligations of CTek. All of the obligations of CTek under this Agreement are subject to
the satisfaction at or prior to the Distribution of each and every one of the following conditions: 
 (a)
Performance. The Shareholders shall have performed and complied in all respects with all of the agreements, covenants and obligations required under this Agreement to be performed or complied with by them on or prior to the Distribution Date.

 (b) Deposit of the Shareholder Stock. The Shareholder Stock and all other documents required to be delivered to the
Escrow Agreement shall have been delivered to the Escrow Agent in accordance with the terms hereof and thereof. 
 (c)
Escrow Agreement. The Escrow Agreement shall have been executed and delivered by all of the parties thereto. 
 Section 2.07.
Conditions Precedent to the Obligations of the Shareholders. All of the obligations of the Shareholders under this Agreement are subject to the satisfaction at or prior to the Distribution of each and every one of the following conditions:

 (a) Performance. CTek shall have performed and complied in all material respects with all of the agreements,
covenants and obligations required under this Agreement to be performed or complied with by it on or prior to the Distribution Date. 

(b) Escrow Agreement and Release. The Escrow Agreement and Release shall have been executed and delivered by the parties
thereto. 

  
 5 

 Section 2.08. Announcements and Filings. CTek shall, when appropriate and when
required by applicable law, make public announcements and filings with the U.S. Securities and Exchange Commission (the “SEC”) with respect to a proposed corporate restructuring, and, without limiting the foregoing, shall endeavor to file
an Information Statement on Schedule 14-f and all periodic reports on Form 8-K when and to the extent required by applicable law. 
 ARTICLE
3 
 THE DISTRIBUTION 

Section 3.01. Securities to be Purchased. On and subject to the terms and conditions set forth herein, on the Distribution Date,
each Shareholder shall sell to CTek, and CTek shall purchase from each Shareholder, all of the Shareholders’ right, title and interest in and to the Shareholder Stock. 

Section 3.02. Consideration. The purchase price for the Shareholder Stock shall be all (100%) of the equity in Creative
Bellows, representing all of CTek’s entire China based businesses, and each Shareholder (or its designee) shall receive an ownership interest in Creative Bellows as set forth in Schedule I attached hereto. 

Section 3.03. Distribution and Delivery of Creative Bellows and Shareholder Stock. 

(a) Subject to the terms and conditions of this Agreement and including but not limited to the requirements of Article 2,
on the Distribution Date, McEwen shall immediately instruct the Escrow Agent to (a) to deliver the Shareholder Stock to CTek, and (b) transfer the ownership of Creative Bellows by transfer of the BVI Company to the Shareholders. 

(b) On the Distribution Date, the Shareholders shall deliver, or cause to be delivered, to CTek: (i) the Shareholder Stock
in accordance with the procedures described herein, free and clear of any and all claims, charges, security interests, pledges, encumbrances or other Liens of any nature whatsoever and together with all accrued benefits and rights attaching thereto;
(ii) such other documents as may be specified or required to satisfy the conditions set forth herein; and (iii) such other documents and instruments as CTek may reasonably request. 

(c) On the Distribution Date, CTek shall transfer or cause to be transferred to the Shareholders or their designees:
(i) ownership of Creative Bellows in accordance with the procedure described herein, free and clear of any and all claims, charges, security interests, pledges, encumbrances or other Liens of any nature whatsoever and together with all accrued
benefits and rights attaching thereto; and (ii) such other documents as the Shareholders may reasonably request. 

  
 6 

 (d) The transfer of the Shareholder Stock will be effected by means of delivery
of stock certificates duly endorsed or accompanied by duly executed stock powers and notation on the stock record books of the corporation or other legal entities involved and, to the extent required by applicable law, by notation on appropriate
registries. The transfer of the ownership of Creative Bellows shall be effected in accordance with applicable law and, by transfer of the BVI Company. 

Section 3.04. Distribution Date. All proceedings to be taken and all documents to be executed on the Distribution Date shall be
deemed to have been taken, delivered and executed simultaneously, and no proceeding shall be deemed taken nor documents deemed executed or delivered until all have been taken, delivered and executed. 

ARTICLE 4 
 REPRESENTATIONS AND
WARRANTIES OF THE SHAREHOLDERS 
 In order to induce CTek to enter into this Agreement and to consummate the transaction contemplated
hereby, the Shareholders, individually and collectively, make the representations and warranties set forth below to CTek and each of its creditors: 

Section 4.01. Authorization; Enforceability. The Shareholders have all necessary right and authority to execute, deliver and
perform all of their respective obligations under this Agreement and the transactions contemplated hereby. This Agreement has been duly executed and delivered by the Shareholders, and constitutes the legal, valid and binding obligation of the
Shareholders, enforceable in accordance with its terms, except to the extent that its enforcement is limited by bankruptcy, insolvency, reorganization or other laws relating to or affecting the enforcement of creditors’ rights generally and by
general principles of equity. 
 Section 4.02. No Violation or Conflict. The execution, delivery and performance of this
Agreement by the Shareholders and the consummation by the Shareholders of the transactions contemplated hereby: (a) do not and will not violate or conflict with any provision of law or regulation, or any writ, order, judgment or decree of any
court or Governmental Entity; and (b) do not and will not, with or without the passage of time or the giving of notice, result in the breach of, or constitute a default, cause the acceleration of performance, or require any Consent under, or
result in the creation of any charge, encumbrance or other Lien upon any property or assets of the Shareholders pursuant to any instrument or agreement to which the Shareholders are a party or by which the Shareholders or their properties may be
bound or affected, other than instruments or agreements as to which Consent shall have been obtained at or prior to the Effective Date. 

Section 4.03. Consent of Governmental Authorities. Other than in connection with the Securities Act, the Exchange Act and the
rules of any applicable stock exchange, no Consent, approval or authorization of, or registration, qualification or filing with any Governmental Entity is required to be made by the Shareholders in connection with the execution, delivery or
performance by the Shareholders of this Agreement or the consummation by the Shareholders of the transactions contemplated hereby. 

Section 4.04. No Encumbrances. When transferred to the Escrow Agent and distributed CTek in accordance with this Agreement, the
Shareholder Stock shall be free and clear of all Liens. 

  
 7 

 ARTICLE 5 

REPRESENTATIONS AND WARRANTIES OF CTEK 

In order to induce the Shareholders to enter into this Agreement and to consummate the transaction contemplated hereby, CTek makes the
representations and warranties set forth below to the Shareholders and creditors of CTek: 
 Section 5.01. Organization; Standing
and Power. CTek is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Nevada with the requisite corporate power and authority to own and use its properties and assets and to carry on its
business as currently conducted. 
 Section 5.02. Authorization; Enforceability. The execution, delivery and performance of this
Agreement by CTek and the consummation by CTek of the transactions contemplated hereby have been duly authorized by all requisite corporate action (including, without limitation, Consent of CTek’s shareholders). This Agreement has been duly
executed and delivered by CTek, and constitutes the legal, valid and binding obligation of CTek, enforceable in accordance with its terms, except to the extent that its enforcement is limited by bankruptcy, insolvency, reorganization or other laws
relating to or affecting the enforcement of creditors’ rights generally and by general principles of equity. 
 Section 5.03.
No Violation or Conflict. The execution, delivery and performance of this Agreement by CTek and the consummation by CTek of the transactions contemplated hereby: (a) do not and will not violate or conflict with any provision of law or
regulation, or any writ, order, judgment or decree of any court or Governmental Entity, or any provision of CTek’s Articles of Incorporation or Bylaws; and (b) do not and will not, with or without the passage of time or the giving of
notice, result in the breach of, or constitute a default, cause the acceleration of performance, or require any Consent under, or result in the creation of any charge, encumbrance or other Lien upon any property or assets of CTek pursuant to any
material instrument or agreement to which CTek is a party or by which CTek or its properties may be bound or affected, other than instruments or agreements as to which Consent shall have been obtained at or prior to the Effective Date. 

Section 5.04. Consent of Governmental Authorities. Other than in connection with the Securities Act, the Exchange Act and the
rules of NASDAQ, as applicable, no Consent, approval or authorization of, or registration, qualification or filing with any Governmental Entity is required to be made by CTek in connection with the execution, delivery or performance by CTek of this
Agreement or the consummation by CTek of the transactions contemplated hereby. 
 Section 5.05. Validity of Securities. When
distributed to the Shareholders in accordance with this Agreement, all of the ownership interest in Creative Bellows shall be duly and validly authorized, legally issued and outstanding, fully paid and non-assessable, shall not have been issued in
violation of the preemptive rights of any Person, and shall be free and clear of all Liens. 

  
 8 

 ARTICLE 6 

RELEASE; INDEMNIFICATION; EXPENSES 

Section 6.01. Releases. 

(a) Effective as of the Distribution Date and except as otherwise provided herein, each of the Shareholders, on behalf of
themselves and their respective executors, heirs, administrators, Affiliates, assigns and any other Person claiming by, through or under such Shareholder hereby waives, releases covenants not to sue and forever discharges each of CTek and its
Affiliates and each of CTek’s creditors and their respective Affiliates, officers, managers, directors, agents, record and beneficial security holders (including trustees and beneficiaries of trusts holding such securities) and Representatives
(in each case, in their respective capacities as such) and their respective heirs, executors, administrators, successors and assigns, from and with respect to any and all debts, demands, actions, causes of action, suits, covenants, contracts,
agreements, promises, tort damages, claims, demands and any other Liabilities whatsoever of every name and nature, both in law and in equity (the “Claims”), which such Shareholder has or ever had or ever will have, which arise out of or
relate to events, circumstances or actions taken by CTek, any creditor of CTekor any of their Representatives or Affiliates occurring or failing to occur or any conditions existing at or prior to the Distribution; provided, however, that the
foregoing general release shall not apply to any Liabilities arising from the failure of CTek to perform its obligations under this Agreement. Each of the Shareholders represents that such Shareholder has not assigned, transferred, or purported to
assign any Claim or any portion of any Claim or interest therein. Each Shareholder further waives any rights to any monetary recovery from any action pursued against either of CTek or any creditor of CTek by any Governmental Entity. 

(b) Each Shareholder acknowledges that it has been advised by its legal counsel that, under the laws of certain jurisdictions,
a general release does not extend to claims which the creditor does not know or suspect to exist in such Person’s favor at the time of executing the release, which if known by such Person must have materially affected such Person’s
settlement with the debtor. Being aware of the foregoing, each Shareholder hereby expressly waives any rights such Shareholder may have under any statutes or common law principles of similar effect. 

(c) Effective as of the Distribution Date and except as otherwise provided herein, CTek, on behalf of itself and its respective
administrators, Affiliates, assigns and any other Person claiming by, through or under CTek hereby waives, releases covenants not to sue and forever discharges each Shareholder and such Shareholder’s respective Affiliates and Representatives
(in each case, in their respective capacities as such) and their respective heirs, executors, administrators, successors and assigns, from and with respect to any and all Claims which CTek has or ever had or ever will have, which arise out of or
relate to events, circumstances or actions taken by any of the Shareholders or their Representatives or Affiliates occurring or failing to occur or any conditions existing at or prior to the Distribution; provided,

  
 9 

 
however, that the foregoing general release shall not apply to any Liabilities arising from the failure of any Shareholder to perform its obligations under this Agreement. CTek represents that
CTek has not assigned, transferred, or purported to assign any Claim or any portion of any Claim or interest therein. CTek further waives any rights to any monetary recovery from any action pursued against a Shareholder or any creditor of a
Shareholder by any Governmental Entity. 
 Section 6.02. Indemnification by Shareholders. Each Shareholder shall defend,
indemnify and hold harmless CTek, each creditor of CTek and each of their respective Representatives and Affiliates (collectively, the “CTek Indemnified Parties”) from and against any and all Claims, Liabilities and other expenses,
including reasonable attorneys’ fees and expenses, incurred by any Indemnified Party arising out of or in connection with any misrepresentation, breach of warranty or non-fulfillment of any obligation on the part of any Shareholder under this
Agreement. 
 Section 6.03. Indemnification by CTek. CTek shall defend, indemnify and hold harmless the Shareholders, each
creditor of CTek and each of their respective Representatives and Affiliates (collectively, the “Shareholder Indemnified Parties”) from and against any and all Claims, Liabilities and other expenses, including reasonable attorneys’
fees and expenses, incurred by any Shareholder Indemnified Party arising out of or in connection with any misrepresentation, breach of warranty or non-fulfillment of any obligation on the part of CTek under this Agreement. 

Section 6.04. Remedies Cumulative. The remedies provided in this Article 6 shall be cumulative and shall not preclude assertion by
any party of any other rights or the seeking of any and all other remedies against any other party. 
 ARTICLE 7 

ADDITIONAL AGREEMENTS 

Section 7.01. Confidentiality. Except as otherwise required in the performance of obligations under this Agreement and except as
otherwise required by law, any nonpublic information received by a party hereto or its Representatives from any other party shall be kept confidential and shall not be used or disclosed for any purpose other than in furtherance of the transaction
contemplated by this Agreement. The obligation of confidentiality shall not extend to information (a) which is or shall become generally available to the public other than as a result of an unauthorized disclosure by a party to this Agreement
or a Person to whom a party has provided such information, (b) which is or becomes known by or available to a party to this Agreement on a nonconfidential basis prior to its disclosure by one party to the other pursuant to this Agreement, or
(c) which is or becomes available to a party on a nonconfidential basis from a source other than a party to this Agreement. Upon termination of this Agreement, each party shall promptly return any confidential information received from the
other party and, upon request, shall destroy any copies of such information in its possession. The covenants of the parties contained in this Section 7.01 shall survive any termination of this Agreement. 

  
 10 

 Section 7.02. Notification. Each party to this Agreement shall promptly notify the
other parties in writing of the occurrence, or pending or threatened occurrence, of any event that would constitute a breach or violation of this Agreement by any party or that would cause any representation or warranty made by the notifying party
in this Agreement to be false or misleading in any respect. Any such notification shall not limit or alter any of the representations, warranties or covenants of the parties set forth in this Agreement nor any rights or remedies a party may have
with respect to a breach of any representation, warranty or covenant. 
 Section 7.03. Further Assurances. The parties hereto
shall deliver any and all other instruments or documents required to be delivered pursuant to, or necessary or proper in order to give effect to, all of the terms and provisions of this Agreement including, without limitation, all necessary stock
powers and such other instruments of transfer as may be necessary or desirable to transfer ownership of the Shareholder Stock and Creative Bellows and to consummate the transactions contemplated by this Agreement. 

Section 7.04. Investigation. The representations, warranties, covenants and agreements set forth in this Agreement shall not be
affected or diminished in any way by any investigation (or failure to investigate) at any time by or on behalf of the party for whose benefit such representations, warranties, covenants and agreements were made. All statements contained herein or in
any schedule, certificate, exhibit, list or other document delivered pursuant hereto or in connection with the transactions contemplated hereby shall be deemed to be representations and warranties for purposes of this Agreement. 

ARTICLE 8 
 MISCELLANEOUS 

Section 8.01. Entire Agreement. This Agreement, including any annexes, schedules and exhibits hereto and the Escrow Agreement will
together constitute the entire agreement between the parties with respect to the subject matter hereof and thereof and will supersede all prior negotiations, agreements and understandings of the parties of any nature, whether oral or written, with
respect to such subject matter. 
 Section 8.02. Governing Law. This Agreement will be governed by and construed in accordance
with the internal laws of the State of New York applicable to contracts made and to be performed entirely within such State, without regard to the conflicts of law principles of such State. 

Section 8.03. Notices. All notices, demands, or other communications hereunder shall be in writing and given to the Person(s) to
whom the notice is directed, either by: (a) actual delivery at the address(es) stated below, including a national overnight delivery service, which shall be deemed effective at the time of actual delivery; (b) certified mail, return
receipt requested, addressed as stated below, posted and deposited with the U.S. Postal Service, which shall be deemed effective three Business Days after being so deposited; (c) facsimile 

  
 11 

 
transmission to the facsimile transmission number stated below, provided that there is contemporaneous deposit of such notice with a national overnight delivery service addressed as stated below,
which notice shall be deemed effective upon the earlier to occur of: (i) completion of the facsimile transmission; or (ii) actual delivery; or (d) e-mail transmission to the e-mail address stated below, provided that there is
simultaneous deposit of such notice with a national overnight delivery service addressed as stated below, which notice shall be deemed effective upon the earlier to occur of: (i) completion of the e-mail transmission; or (ii) actual
delivery by the overnight delivery service. All notices, demands, or other communications hereunder shall be addressed as follows:
  

			
	If to CTek:	  	CleanTech Innovations, Inc.
		  	C District, Maoshan Industry Park,
		  	Tieling Economic Development Zone,
		  	Tieling, Liaoning Province, China 112616
		  	Attention: Bei Lu
		  	Tel: 86-13904026412
		  	Email: beilv2010@163.com
		
	with a copy to:	  	Stevens & Lee P.C.
		  	1818 Market St., 29th Fl.
		  	Philadelphia, PA 19103 U.S.A.
		  	Attn: William W. Uchimoto, Esq
		  	Tel: (215)751-2876
		  	Fax: 610-371-7742
		  	Email: wwu@stevenslee.com
		
	and copy to:	  	Holland & Knight LLP
		  	31 West 52nd Street
		  	New York, New York 10019 U.S.A.
		  	Attention: Neal N. Beaton, Esq.
		  	Tel: (212) 513-3470
		  	Fax: (212) 341-7103
		  	Email: neal.beaton@hklaw.com
		
	If to the Shareholders:	  	C District, Maoshan Industry Park,
		  	Tieling Economic Development Zone,
		  	Tieling, Liaoning Province, China 112616
		  	Attention: Bei Lu
		  	Tel: 86-13904026412
		  	Email: beilv2010@163.com

 Section 8.04. Submission to Jurisdiction. 

(a) Each party hereby irrevocably and unconditionally (i) agrees that any legal action, suit or proceeding arising out of
or relating to this Agreement may be brought in the courts of the State of New York or of the United States of America for the Southern District of New York and (ii) submits to the exclusive jurisdiction of any such court in any such action,
suit or proceeding. 
 (b) Each party irrevocably and unconditionally waives, to the fullest extent permitted by applicable
law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Escrow Agreement in any court referred to this Section 8.04 and the defense of an inconvenient forum to
the maintenance of such action or proceeding in any such court. 

  
 12 

 Section 8.05. Amendments. This Agreement cannot be amended, modified or supplemented
except by a written agreement executed by each of the parties hereto. 
 Section 8.06. Assignment. No party will convey, assign
or otherwise transfer any of its rights or obligations under this Agreement without the prior written Consent of the other party in its sole and absolute discretion. Any conveyance, assignment or transfer requiring the prior written Consent of
another party pursuant to this Section 8.06 which is made without such Consent will be null and void, ab initio. No assignment of this Agreement will relieve the assigning party of its obligations hereunder. 

Section 8.07. Headings. The article, section and paragraph captions herein and the table of contents hereto are for convenience of
reference only, do not constitute part of this Agreement and will not be deemed to limit or otherwise affect any of the provisions hereof, Unless otherwise specified, all references herein to numbered articles or sections are to articles and
sections of this Agreement and all references herein to schedules are to schedules to this Agreement. 
 Section 8.08.
Severability. If any provision of this Agreement or the application thereof to any Person or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the
application of such provision to Persons or circumstances other than those as to which it has been held invalid or unenforceable, will remain in full force and effect and will in no way be affected, impaired or invalidated thereby. If the economic
or legal substance of the transactions contemplated hereby is affected in any manner adverse to any party as a result thereof, the parties will negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to
effect the original intent of the parties. 
 Section 8.09. Binding Effect. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective Representatives and permitted assigns. 
 Section 8.10. Schedules. All
exhibits and schedules attached hereto are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Capitalized terms used in the exhibits and schedules hereto but not otherwise defined therein will have the
respective meanings assigned to such terms in this Agreement. 
 Section 8.11. Termination. This Agreement may be terminated and
the Distribution abandoned at any time prior to the Distribution Date by written agreement executed by all parties hereto. In the event of such termination, no party will have any liability of any kind to any other party on account of such
termination. 

  
 13 

 Section 8.12. Waivers; Remedies. The conditions to CTek’s obligation to
consummate the Distribution are for the sole benefit of CTek and may be waived in writing by CTek in whole or in part in CTek‘s sole discretion. No failure or delay on the part of any party hereto in exercising any right, power or privilege
hereunder will operate as a waiver thereof, nor will any waiver on the part of any party hereto of any right, power or privilege hereunder operate as a waiver of any other right, power or privilege hereunder, nor will any single or partial exercise
of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder. 

Section 8.13. Further Assurances. From time to time after the Distribution Date, as and when requested by a party hereto, the
other parties shall execute and deliver, or cause to be executed and delivered, all such documents and instruments and shall take, or cause to be taken, all such actions as the requesting party may reasonably request to consummate the transactions
contemplated by this Agreement. 
 Section 8.14. Counterparts. This Agreement and any amendments, waivers, Consents or
supplements hereto may be executed in counterparts, each of which shall constitute an original, but all taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or in
electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement. 

Section 8.15. Interpretation. Any reference herein to any federal, state, local, or foreign law shall be deemed also to refer to
all rules and regulations promulgated thereunder, unless the context requires otherwise. For the purposes of this Agreement, (a) words in the singular shall be held to include the plural and vice versa and words of one gender shall be held to
include the other gender as the context requires, (b) the terms “hereof”, “herein”, and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole and
not to any particular provision of this Agreement and (c) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation”. 

Section 8.16. Third Party Beneficiaries. It is expressly agreed by each Party that each creditor of CTek is a third-party
beneficiary of the terms and conditions of this Agreement, and each of them shall have the right to enforce any provision of this Agreement affecting their respective rights hereunder. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.] 

  
 14 

 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized
officers of the parties as of the Effective Date. 
  

									
	 /s/ Ping Chen
	 		 	CLEANTECH INNOVATIONS, INC.
	Ping Chen	 		 		 		 	
				
		 		 	By:	 	 /s/ Terry McEwen

	 /s/ Shengfen Lin
	 		 		 	Name:	 	Terry McEwen
	Shengfen Lin	 		 		 	Title:	 	Chief Executive Officer
					
	 /s/ Wenge Chen
	 		 		 		 	
	Wenge Chen	 		 		 		 	
					
	 /s/ Bei Lu
	 		 		 		 	
	Bei Lu	 		 		 		 	
					
	 /s/ Dianfu Lu
	 		 		 		 	
	Dianfu Lu	 		 		 		 	

  
 15 

 EXHIBIT A 

List of Stockholders 
  

							
	 Name
	  	 Certificate Number
	  	Shares of CTek Common Stock	 
			
	 Ping Chen
	  	Transfer Agent: Certificate # 2004	  	 	755,635	  
			
	 Shengfen Lin
	  	Transfer Agent: Certificate # 2005	  	 	755,635	  
			
	 Wenge Chen (5% holder)
	  	Transfer Agent: Certificate # 2003	  	 	2,117,691	  
			
	 Bei Lu
	  	Transfer Agent: Certificate # 2001	  	 	9,482,751	  
			
	 Dianfu Lu
	  	Transfer Agent: Certificate # 2002	  	 	2,117,691	  
		  		  	  
	  
	 
			
		  		  	 	Total: 15,229,403	  

 EXHIBIT B 

Form of Proxy 
 CLEANTECH
INNOVATIONS, INC. 
 a Nevada corporation 

IRREVOCABLE PROXY COUPLED WITH AN INTEREST 

The undersigned shareholder (the “Shareholder”) of CleanTech Innovations, Inc., a Nevada corporation (the “Company”)
hereby appoints Mr. Terry McEwen (“McEwen”), the Company’s current Chairman of the Audit Committee, with full power of substitution, to cast all votes such Shareholder may have, as Shareholder’s proxy, at any and all
meetings of the shareholders of the Company or pursuant to a written consent of the Company’s shareholders, and as such Shareholder’s proxy, to consent or dissent to any action taken without a meeting, and further makes, constitutes and
irrevocably appoints McEwen to act as the true and lawful proxy and attorney-in-fact in the name and on behalf of such Shareholder, with full power to appoint a substitute or substitutes, to vote and execute and deliver written voting consents with
respect to the entirety of such Shareholder’s share ownership in the Company, to the extent and with the same effect such Shareholder could do under any applicable laws or regulations governing the rights and powers of shareholders of the
Company (the irrevocable proxy granted hereunder, the “Irrevocable Proxy”). 
 THIS PROXY AND POWER OF ATTORNEY ARE IRREVOCABLE
AND COUPLED WITH AN INTEREST. This Irrevocable Proxy is being given to McEwen in connection with certain restructuring efforts to be pursued by the Company in consideration of NYGG (Asia) Ltd.’s forgiveness of certain debt owed by the Company
and/or its affiliates. All power and authority conferred under this Irrevocable Proxy shall not be terminated by any act of the undersigned or by operation of law, by death or incapacity of the undersigned, by lack of appropriate power or authority,
or by the occurrence of any other event or events, except as expressly provided herein. If, after the execution of this Irrevocable Proxy, any such event or events shall occur, McEwen is nevertheless authorized and directed to vote the shares in
accordance with the terms of this Irrevocable Proxy as if such death, incapacity, lack of appropriate power or authority or other event or events had not occurred and regardless of notice thereof. This Irrevocable Proxy shall be binding upon, and
enforceable against, all beneficiaries, heirs at law, legatees, distributees, successors, assigns, transferees and legal representatives of the Shareholder. 

This Irrevocable Proxy shall terminate on (i) the transfer of the shares to which this Irrevocable Proxy apply to the Company or
(ii) such later time as McEwen may determine. 
 [REMAINDER OF PAGE INTENTIONALLY BLANK] 

 The parties hereto expressly acknowledge and agree that this Irrevocable Proxy gives McEwen the
exclusive right to vote (or consent) with respect to all of the Shareholder’s shares of the Company in the manner determined by McEwen in his sole and absolute discretion. 

 

					
	SHAREHOLDER:	 		 	
			
	  
	 		 	  

	Signature	 		 	Date
			
	  
	 		 	
	Name	 		 	
			
	  
	 		 	
	Address	 		 	

  

					
	Number of Shares held by Shareholder:	  	  
	  	

  
 2 

 Schedule I 

Distribution of Creative Bellows Ownership Interests 

Bei Lu and her designees: 100%

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