Document:

Exhibit 10.1

 

VOTING AND CONVERSION AGREEMENT

 

This VOTING AND CONVERSION AGREEMENT, dated as of this 10th day
of March 2014, (the “Agreement” ), by and among NanoHolding Inc., a Delaware corporation (“Nano”),
and each of the shareholders and other security holders of APNT identified on the signature pages hereto (each, a “Sponsor,”
and collectively the “Sponsors” ). All capitalized terms used but not defined in this Agreement shall
have the meanings ascribed to them in the Merger Agreement (as defined below).

 

WHEREAS, Applied Nanotech Holdings, Inc., a Texas corporation (“APNT”),
PEN Inc., NanoMerger Sub Inc., Nano and Carl Zeiss, Inc. are entering into an Agreement and Plan of Merger and Exchange of even
date (the “Merger Agreement”) that provides for the redomestication of APNT into PEN a Delaware corporation
and for the merger of NanoMerger Sub Inc. into Nanofilm; and

 

WHEREAS, in order to induce Nano to enter into the Merger Agreement
and as condition to close as provided for therein, Nano and the Sponsors have agreed to enter into this Agreement.

 

NOW, THEREFORE, in consideration of the covenants, promises and
representations set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby expressly
and mutually acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows:

 

	1. 	REPRESENTATIONS AND WARRANTIES.

 

Each of the parties hereto, by their respective execution and delivery
of this Agreement, hereby represents and warrants to the other party hereto that:

 

(a) such party has the full right, capacity and authority to
enter into, deliver and perform this Agreement;

 

(b) this Agreement has been duly executed and delivered by
such party and is a binding and enforceable obligation of such party, enforceable against such party in accordance with the terms
of this Agreement; and

 

(c) the execution, delivery and performance of such party’s
obligations under this Agreement will not require such party to obtain the consent, waiver or approval of any Person and will not
violate, result in a breach of, or constitute a default under any statute, regulation, agreement, judgment, consent, or decree
by which such party is bound.

 

	2. 	SHARES SUBJECT TO AGREEMENT

 

Each Sponsor, severally and not jointly, agrees to vote all of his,
her or its voting shares of APNT then owned by such Sponsor, whether now owned or hereafter acquired (hereafter referred to as
the “Voting Shares” ), in accordance with the provisions of this Agreement.

 

	3. 	OBLIGATIONS TO VOTE VOTING SHARES FOR APPROVAL OF THE MERGER AGREEMENT

 

At any annual or special meeting called, or in connection with any
other action (including the execution of written consents) taken for the purpose of approving the Merger Agreement, the Redomestication
Merger, the Nano Merger and any of the transaction or matter contemplated by the Merger Agreement (the “Merger Events”
), each of the Sponsors agrees to:

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(i) vote in favor of the adoption and approval of the Merger Agreement
and the Merger Events;

 

(ii) vote against any proposal made in opposition to, or in competition
with, the Merger Agreement and the Merger Events; and

 

(c) vote against any other action that is intended, or would
reasonably be expected to, unreasonably impede, interfere with, delay, postpone, discourage or adversely affect the Merger Agreement
and the Merger Events.

 

	4. 	COVENANT TO VOTE

 

Each Sponsor shall appear in person or by proxy at any annual or
special meeting of shareholders of the APNT for the purpose of obtaining a quorum and shall vote all Voting Shares owned by such
Sponsor, either in person or by proxy, at any annual or special meeting of shareholders of the APNT called for the purpose of voting
on and approving the transactions contemplated by the Merger Agreement. In addition, each Sponsor shall appear in person or proxy
at any annual or special meeting of shareholders of the APNT for the purpose of obtaining a quorum and shall vote, or shall execute
and deliver a written consent with respect to, all Voting Shares owned by such Sponsor, entitled to vote upon any other matter
submitted to a vote of shareholders of the APNT in a manner so as to be consistent and not in conflict with, and to implement,
the terms of this Agreement.

 

	5. 	ADDITIONAL SHARES

 

If, after the effective date hereof, the Sponsors or any of their
affiliates acquire beneficial or record ownership of any additional shares of the APNT (any such shares, “Additional
Shares” ), including, without limitation, upon conversion of any debt or other obligation of APNT into its common
stock, exercise of any option, warrant or right to acquire shares of the APNT or through any stock dividend or stock split, the
provisions of this Agreement shall thereafter be applicable to such Additional Shares as if such Additional Shares had been held
by the Sponsors as of the effective date hereof. The provisions of the immediately preceding sentence shall be effective with respect
to Additional Shares without action by any person or entity immediately upon the acquisition by the Sponsors of the beneficial
ownership of the Additional Shares. The Sponsors shall require any affiliate that acquires Voting Shares or Additional Shares to
vote as the Sponsor is required to vote under this Agreement and shall use reasonable efforts to cause any affiliate that acquires
Additional Shares to enter into a written joinder to this Agreement substantially in the form attached hereto as Exhibit A.

 

	6. 	TRANSFER RESTRICTIONS

 

Each Sponsor agrees that he, she or it shall not transfer any Voting
Shares unless he, she or it shall cause any transferee who acquires such shares to execute and deliver a joinder substantially
in the form of Exhibit A hereto to the APNT. Each certificate, if any, representing any shares of the APNT held by
either party shall be endorsed with a legend reading substantially as follows:

 

“THE SHARES EVIDENCED HEREBY ARE SUBJECT TO A VOTING AGREEMENT
(A COPY OF WHICH MAY BE OBTAINED UPON WRITTEN REQUEST FROM THE ISSUER), AND BY ACCEPTING ANY INTEREST IN SUCH SHARES THE PERSON
ACCEPTING SUCH INTEREST SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF SAID VOTING AGREEMENT.”

 

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	7. 	CONVERSION OF ACCRUED COMPENSATION

 
 

(a) Each of the Sponsors listed on the Signature
Page to this Agreement hereby acknowledge that APNT owes him, or in the case of Sichuan Anxian Yinhee Chemical and Construction
Company (“SAYCC”), its representative, certain accrued compensation related to services rendered as a director as
of the date hereof in an amount set forth beneath their respective names on the Signature Page to this Agreement (the “Accrued
Compensation”). Shareholder acknowledges that no other compensation, stock awards, vacation pay, sick pay or any
other money is currently owed to Sponsor related to service as a Director other than (i) out-of-pocket expenses reimbursable to
such Sponsor under expense reimbursement policies previously approved by the Board of Directors of APNT, and (ii) for those Directors
who served on the Merger Committee the one-time fee that will be paid in stock if and when the closing occurs under the Merger
Agreement. Sponsor agrees additional compensation for service as a director will accrue after the date of this Agreement based
on the fee schedule attached as Annex A.

 

(b) Immediately prior to the Nano Merger as defined in the Merger
Agreement the Accrued Compensation plus compensation for service as a Director earned after the date hereof until the day of the
Redomestication Merger will automatically be converted into shares of PEN’s Class A Common Stock (the “Class
A Common Stock”) at the Conversion Price. The number of shares of the Class A Common Stock to be issued to the representative
of SAYCC and to each individual Sponsor upon conversion shall be determined by dividing (x) the amount due to the Sponsor (or its
representative) by (y) the Conversion Price. The “Conversion Price” shall be equal to $0.05 per share.

 

(c) The obligations of the Sponsors under Section 7(a) and to convert
their Accrued Compensation into shares of PEN as provided for in this Section 7 is contingent upon the Closing under the Merger
Agreement and in the event the Closing under the Merger Agreement does not occur or such agreement is terminated through no fault
of APNT, Sponsor shall have no obligation under this Section 7.

 

	8. 	TERMINATION

 

This Agreement shall commence on the date hereof and continue in
force and effect until the earlier of (i)  the Closing Date of the Merger Agreement, or (ii) the End Date as provided
for in the Merger Agreement. Upon the termination of this Agreement, except as otherwise set forth herein, the restrictions and
obligations set forth herein shall terminate and be of no further effect, except that such termination shall not affect rights
perfected or obligations incurred under this Agreement prior to such termination.

 

	9. 	GENERAL PROVISIONS

 

(a) Notices. Unless otherwise provided herein, all notices,
requests, waivers and other communications made pursuant to this Agreement will be in writing and will be given in accordance with
the notice provisions of the Merger Agreement.

 

(b) Enforceability; Severability. The parties hereto
agree that each provision of this Agreement will be interpreted in such a manner as to be effective and valid under applicable
law. If one or more provisions of this Agreement are nevertheless held to be prohibited, invalid or unenforceable under applicable
law, such provision will be effective to the fullest extent possible excluding the terms affected by such prohibition, invalidity
or unenforceability, without invalidating the remainder of such provision or the remaining provisions of this Agreement. If the
prohibition, invalidity or unenforceability referred to in the prior sentence requires such provision to be excluded from this
Agreement in its entirety, the balance of the Agreement will be interpreted as if such provision were so excluded and will be enforceable
in accordance with its terms.

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(c) Entire Agreement. This Agreement constitutes the
entire agreement among the parties with respect to the subject matter hereof.

 

(d) Equitable Relief. The parties hereto recognize that,
if such party fails to perform or discharge any of its obligations under this Agreement, any remedy at law may prove to be inadequate
relief to the other parties. Each party hereto therefore agrees that the other parties are entitled to seek temporary and permanent
injunctive relief and any other equitable remedy a court of competent jurisdiction may deem appropriate in any such case.

 

(e) Manner of Voting. The voting of shares pursuant
to this Agreement may be effected in person, by proxy, by written consent or in any other manner permitted by applicable law.

 

(f) Governing Law. This Agreement shall be construed
in accordance with, and governed in all respects by, the laws of the State of Delaware.

 

(g) Delays or Omissions. No delay or omission to exercise
any right, power or remedy accruing to any party under this Agreement, or upon any breach or default of any other party under this
Agreement, will impair any such right, power or remedy of such non-breaching or non-defaulting party nor will it be construed to
be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring;
nor will any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter
occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any provisions or conditions
of this Agreement, must be in writing and will be effective only to the extent specifically set forth in such writing. Except as
otherwise set forth herein, all remedies, either under this Agreement or by Law or otherwise afforded to any party, will be cumulative
and not alternative.

 

(h) Counterparts. This Agreement may be executed in
any number of counterparts, each of which shall be deemed an original, and all of which together shall constitute one instrument.

 

(i) Amendments. Any term of this Agreement may be amended
only with the written consent of the parties hereto.

 

(j) Controlling Agreement. To the extent the terms of
this Agreement (as amended, supplemented, restated or otherwise modified from time to time) directly conflicts with a provision
in the Merger Agreement, the terms of this Agreement shall control.

 

[Signatures begin on next page.]

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IN WITNESS WHEREOF, the Parties hereto have executed or caused this
Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

NANOHOLDING INC.

 

 

By: /s/ Scott E Rickert

Name:Scott E Rickert

Title: President

 

SPONSORS

	 	SICHUAN ANXIAN YINHEE CHEMICAL AND CONSTRUCTION COMPANY
	 	 	 
	 	 	 
	 		By:_____________________________________
	 	 	Its:
	 	 	Address: 3006 Longhorn Blvd. Suite 107, Austin, TX 78758
	 	 	
        Facsimile:  (512) 339 – 5021

         

        Its representative: David (Xin) Li

         

        __________

        

        Xin Li

        Address: 

        Facsimile: 

        Accrued Compensation: $36,667

         

        /s/ Doug Baker

        Doug Baker

         

        Address: 3006 Longhorn Blvd. Suite 107, Austin, TX 78758 

        Facsimile: (512) 339 – 5021

        Accrued Compensation: none

         

        /s/ Paul Rocheleau

        Paul Rocheleau

         

        Address: 3006 Longhorn Blvd. Suite 107, Austin, TX 78758 

        Facsimile: (512) 339 – 5021

        Accrued Compensation: $26,335

         

        /s/Robert Ronstadt

        Robert Ronstadt

         

        Address: 3006 Longhorn Blvd. Suite 107, Austin, TX 78758

        Facsimile: (512) 339 – 5021

        Accrued Compensation: $54,977

         

         

 

 

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	 	 	/s/ Howard Westerman

        Howard Westerman

         

        Address: 3006 Longhorn Blvd. Suite 107, Austin, TX 7875

        Facsimile: (512) 339 – 5021

        Accrued Compensation: $26,335

         

        /s/Zvi Yaniv

        Zvi Yaniv

         

        Address: 3006 Longhorn Blvd. Suite 107, Austin, TX 7875

        Facsimile: (512) 339 – 5021

        Accrued Compensation: none

         

        /s/ Ronald Berman

        Ronald Berman

         

        Address: 3006 Longhorn Blvd. Suite 107, Austin, TX 7875

        Facsimile: (512) 339 – 5021

        Accrued Compensation: $32,927

 

 

 

 

 

 

 

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Exhibit A

 

Joinder to Voting Agreement

 

By execution of this Joinder, the undersigned (the “Sponsor”)
hereby joins in, agrees to become a party to, be bound by, and subject to, all of the covenants, terms and conditions of that certain
Voting Agreement, dated as of March 10, 2014 (as the same may be amended, supplemented or otherwise modified from time to time,
the “Voting Agreement”), by and among [________________], a ______ company, and certain of its shareholders in the
same manner as if the Sponsor were an original signatory to such Voting Agreement.

 

The Sponsor shall have all the rights, and shall observe all the
obligations, applicable to a Sponsor under the Voting Agreement.

 

The Sponsor represents and warrants that he/she/it has received
a copy of, and has reviewed the terms of, the Voting Agreement.

 

All questions concerning the construction, validity and interpretation
of this Joinder will be governed by and construed in accordance with the internal laws of the state of Delaware.

 

IN WITNESS WHEREOF, the Sponsor has executed this Joinder
as of this ____ day of _____ , ____ .

 

SHAREHOLDER

 

with copies to:

 

 

	 	 	 
	
 

	By: 

         
	 

         

         

 

Address for

Notices:

 

 

 

 

 

    	7Exhibit 10.2

 

SEPARATION AND RELEASE AGREEMENT

 

This Separation and Release Agreement (“Agreement”)
is entered into by Douglas P. Baker (“Employee”) and Applied Nanotech Holdings, Inc. (the “Company”).

 

Employee agrees that this Agreement is part
of an overall settlement and new consulting relationship set forth in the following agreements that are being entered into simultaneously
between Baker and the Company: (i) Consulting Agreement, (ii) Promissory Note, (iii) Stock Grant Agreement, and (iv) Piggyback
Registration Rights Agreement (the “New Agreements”). Simultaneously with the execution and delivery of this
Agreement, Employee and the Company are delivering the New Agreements that provide valuable benefits to Employee.

 

Employee and the Company agree that Employee’s
employment is terminated effective March 15, 2014. Effective on that date, by this Agreement, Employee resigns as Chief Financial
Officer and as a Director of the Company, and resigns all his positions as an officer or director of any subsidiary of the Company.

 

The Company will pay Employee 196 hours ($16,490)
of accrued vacation time in amounts equal to his regular pay for the last month, in accordance with the Company's regular payroll
practice, less applicable taxes and authorized withholdings until paid in full. Employee’s options to acquire stock of the
Company under the 2002 Equity Compensation Plan and the 2012 Equity Compensation Plan and the Company’s Convertible Promissory
Note dated March 15, 2010 are unaffected by this Agreement or the New Agreements.

 

Subject to the payment of accrued vacation as
set forth above and payment of the March 15, 2014 payroll, Employee agrees that he has been paid all wages, salary, bonuses, commissions,
expense reimbursements, and any other amounts that he is owed, if any. Employee also agrees that he has been paid what he is owed
for any sick time, paid time off or paid leave of absence, or in connection with any severance or deferred compensation plan, if
eligible, and that he has been given all time off to which he was entitled under any policy or law, including, but not limited
to leave under the Family and Medical Leave Act. This Agreement does not affect Employee’s rights under the Company’s
Section 125 (“cafeteria”) plan.

 

Employee is solely responsible for any and all
of his withholding tax obligations or other obligations under federal and/or state law pertaining to the receipt of the consideration
in this Agreement and the New Agreements and Employee hereby agrees to hold the Company, its subsidiaries and their respective
affiliates harmless from any and all liability relating to such obligations.

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In exchange for providing Employee with the
obligations under this Agreement and the New Agreements, Employee fully releases the Company and its subsidiaries and their respective
current and former parent companies, subsidiaries, partners, investors, successors, predecessors and affiliated or related companies
as well as any of their respective current and former insurers, directors, officers, agents, partners, shareholders, employees,
consultants, advisors, representatives and assigns (collectively, the “Released Parties”) from any claims, actions,
causes of action, complaints, lawsuits, petitions, charges, indebtedness, wages, compensation, benefits, separation or severance
pay, losses, liabilities and demands Employee may have against them as of the date Employee signs this Agreement, whether such
claims arise from common law, statute, regulation, or contract. This release includes but is not limited to rights and claims arising
under Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the
Americans with Disabilities Act, the Genetic Information Nondiscrimination Act, the Family and Medical Leave Act, and any state
leave or workers’ compensation retaliation law. By accepting the New Agreements, Employee has agreed to release the Released
Parties from any liability arising out of Employee’s employment with and separation from the Company. This would include,
among other things, claims alleging breach of contract, defamation, emotional distress, harassment, retaliation, or discrimination
based on age, gender, race, religion, national origin, disability or any other status under local, state or federal law. For the
avoidance of doubt, this is not a release of any rights of Employee (1) Employee’s rights to his account balance under the
Company’s 401(k) plan, (2) rights to indemnification for claims that may be asserted against Employee with respect to service
as an officer or director of the Company or any of its subsidiaries or Employee’s rights under any directors and officers
liability insurance policy maintained by the Company (3) to elect continuation in the Company’s medical plans as provided
by COBRA; (3) to claims for unemployment compensation or workers compensation benefits or other rights that may not be released
as a matter of law; (4)  any non-waiveable right to file a charge with the U.S. Equal Employment Opportunity Commission. But,
if a government agency were to pursue any matters released by this Agreement, this Agreement will control as the exclusive remedy
and full settlement of all such claims by Employee for money damages.

 

The Company (for itself and its subsidiaries)
fully releases Employee (in his capacity as an Employee) from any claims, actions, causes of action, complaints, lawsuits, petitions,
charges, losses, liabilities and demands the Company may have against Employee as of the date Employee signs this Agreement, whether
such claims arise from common law, statute, regulation, or contract relating to his employment with the Company.

 

Employee shall remain available (even after
the end of the Consulting Agreement) and shall cooperate with the Company with respect to any aspect of litigation, arbitration,
investigation, audit, governmental proceedings or any other proceedings involving the Company in respect of periods during which
Employee was employed by the Company or its subsidiaries or concerning matters in which Employee was involved, or of which Employee
had knowledge, during his employment. Employee will promptly inform the Company if Employee becomes aware of any lawsuits, arbitrations,
administrative actions, claims or investigations involving such matters that may be filed against the Company or any of the Released
Parties. The Company agrees to reimburse Employee for reasonable, pre-approved, out-of-pocket expenses associated with his cooperation,
including travel expenses.

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This Agreement does not prevent Employee from
pursuing any workers’ compensation benefits to which Employee may be entitled.

 

This Agreement does not alter any agreements
or promises Employee made prior to or during Employee’s employment concerning intellectual property, confidentiality, non-solicitation,
or non-competition.

 

Employee is the only person who is able to assert
any right or claim arising out of Employee’s employment with or separation from the Company. Employee promises that he has
not assigned, pledged or otherwise sold such rights or claims, nor has Employee relied on any promises other than those contained
in this Agreement.

 

Neither this Agreement nor the New Agreements
being given to Employee for this release is an admission by the Company of any liability or unlawful conduct of any kind. Employee
agrees that the additional compensation being offered in exchange for Employee’s release of claims and rights is sufficient.

 

Employee will not disparage the Company or do
anything that portrays the Company, its business or personnel in a negative light or that might injure the Company’s business
or affairs. This would include, but is not limited to, disparaging remarks about the Company as well as any Released Party, the
Company’s plans, structure or organization. The Company will not disparage Employee or take any action that portrays the
Employee in a negative light. This would include, but is not limited to, disparaging remarks about the employee or the employee’s
performance. Neither party may make a claim for breach of this paragraph based on testimony given by the other in any lawsuit,
arbitration or governmental investigation.

 

If any portion of this Agreement is found to
be unenforceable, the remainder of the Agreement will remain enforceable.

 

Employee acknowledges that Employee has carefully
read this Agreement and understands what he is signing, what benefits Employee is receiving, what rights Employee is surrendering
and the final and binding effect of this Agreement. Employee has had the opportunity to have this Agreement reviewed by Employee’s
attorney. This Agreement will expire if not executed on or before March 22, 2014 and returned via email to robertronstadt@gmail.com
with a copy to jeannemrickert@msn.com.

 

Employee acknowledges and agrees that Employee
had until March 14, 2014, or 21 days from the date this Agreement was first presented to Employee to consider this Agreement before
accepting it by signing and dating this Agreement and that Employee’s failure to do so within this time period will result
in the revocation of the Company’s offer to enter into this Agreement and will void the New Agreements. Employee may revoke
this Agreement within seven days after Employee signs it. This Agreement and the New Agreements will not become effective or enforceable,
and the payment of accrued vacation will not commence, until the expiration of the seven-day period without Employee’s revocation.

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No term, provision or condition of this Agreement
may be modified in any respect except in a written document signed by all parties to this Agreement. No person has any authority
to make any representation or promises not contained in this Agreement, and this Agreement has not been signed in reliance upon
any representation or promise except what is included in this Agreement.

 

This Agreement may be executed and delivered
in electronic counterparts, each of which will be considered one and the same release and will become effective when it has been
signed by Employee and delivered to the Company.

 

This Agreement fully and accurately describes
the complete agreement concerning Employee’s separation of employment and Employee’s agreement to release the Released
Parties for any acts occurring prior to the date Employee signs this Agreement. By signing this Agreement, Employee agrees that
Employee’s waiver of rights and claims is knowing and voluntary. Employee further confirms that he fully understands the
benefits Employee is receiving and the rights and claims Employee is waiving under this Agreement and that Employee has accepted
those benefits and waived those rights and claims of his own free will.

 

 

This release was presented
to Employee on February 13, 2014.

 

 

	 	APPLIED NANOTECH HOLDINGS, INC.
	 	 
	 	 
	 	 
	 	By:  /s/
    Robert Ronstadt
	 	Robert Ronstadt, Chairman

 

	ACCEPTED AND AGREED TO:	 
	 	 
	 	 
	 	 
	/s/
    Douglas P. Baker	March 10, 2014
	Douglas P. Baker	Date

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