Document:

Exhibit 10.4

 

AGREEMENT

 

This AGREEMENT
(this “Agreement”), dated as of December 3, 2019 (the “Effective Date”), is entered
into by and among Panacea Life Sciences, Inc., a Colorado corporation (the “Company”), [EMPLOYEE], [EMPLOYEE],
[EMPLOYEE] AND [EMPLOYEE] (each a “Key Employee” and collectively, the “Key Employees”),
Quintel-MC Incorporated, a Colorado corporation (“Quintel”), and 22nd Century Group, Inc., a Nevada
corporation (the “Purchaser”). Each of the Company, the Key Employees, Quintel and the Purchaser are referred
to herein as, a “Party” and, collectively as, the “Parties”. Capitalized terms used in this
Agreement but not otherwise defined shall have the meanings set forth in the Purchase Agreement (as defined below).

  

Whereas,
concurrently with the execution of this Agreement, the Company and the Purchaser are entering into a Series B Preferred
Securities Purchase Agreement (the “Purchase Agreement”) providing for the sale of shares of the Series B Preferred
Stock, par value $0.01 per share, of the Company to the Purchaser; and

 

Whereas,
in connection with the consummation of the transactions contemplated by the Purchase Agreement, the Parties desire to enter into
this Agreement in order to grant certain rights and obligations of the Parties.

 

Now,
Therefore, in consideration of these premises and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:

 

1.       Quintel
Exchange. During the period beginning on the date that the Series B Warrant is fully exercised (the
“Warrant Exercise Date”) and ending on the second (2nd) anniversary of the Warrant Exercise
Date, Quintel shall have the right, but not the obligation, to exchange any shares of preferred stock, par value $0.01 per
share (the “Preferred Stock”), of the Company owned by Quintel, any shares of Common Stock owned by
Quintel, and any outstanding indebtedness running from Quintel to the Company, in each case for shares of Purchaser Common
Stock upon 90 days’ prior written notice (the “Exchange Notice”) from Quintel to the Company and the
Purchaser (a “Quintel Exchange”). The per share dollar value of any share of Preferred Stock or Common
Stock to be exchanged by Quintel in the Quintel Exchange shall be equal to the Series B Warrant exercise price per share of
$2.344 (as may adjusted pursuant to the terms of the Series B Warrant, the “Warrant Per Share Price”), and
such aggregate dollar value of the shares of Preferred Stock and Common Stock subject to any Quintel Exchange shall be
applied to a corresponding number of shares of Purchaser Common Stock based on the 90-day VWAP on the date the Purchaser
delivers to Quintel the Purchaser Common Stock in the Exchange; provided that in no event will such price be less than $1.00.
The shares of Purchaser Common Stock issued pursuant to any Quintel Exchange shall have customary lock-up provisions, and
Quintel and the Purchaser will mutually agree upon a schedule for any planned dispositions of the Purchaser Common Stock by
Quintel. For the purposes of this Agreement, “90-day VWAP” means, as of any date, the volume weighted
average price per share of the Purchaser Common Stock on the Principal Trading Market (as reported by Bloomberg L.P. (or its
successor) or, if not available, by another authoritative source mutually agreed by the Company and the Holder) from 9:30
a.m. (New York City time) on the Trading Day that is ninety (90) Trading Days preceding such date to 4:00 p.m. (New York City
time) on the last Trading Day immediately preceding such date.

  

     

     

    

 

2.Put Right.During
the period beginning on the Warrant Exercise Date and ending on the second (2nd) anniversary of the Warrant Exercise
Date, upon the entry by the Company into one or more binding agreements to effect a Fundamental Transaction (as defined in the
Series B Warrant) or series of liquidity events that result in a Fundamental Transaction (as defined in the Series B Warrant),
and for a period of thirty (30) days thereafter, Quintel shall have the right but not the obligation to require the Purchaser
to purchase (the “Put Right”) all of the issued and outstanding shares of capital stock of the Company owned
by Quintel by providing written notice (the “Put Notice”) to the Company and the Purchaser. Following delivery
of the Put Notice by Quintel, the Purchaser shall be obligated to purchase, and Quintel shall sell all of its shares of capital
stock of the Company for an aggregate purchase price (the “Put Purchase Price”) equal to 1.5 times Quintel’s
currently invested capital ($17,000,000) in the Company. The Purchaser shall deliver payment to the Company of the Put Purchase
Price in any of the following forms (in the Purchaser’s sole discretion) (i) cash by wire transfer of immediately available
funds, (ii) shares of Purchaser Common Stock, or (iii) a combination of cash by wire transfer of immediately available funds and
shares of Purchaser Common Stock. If the Purchaser determines (in its sole discretion) to pay all or a portion of the Put Purchase
Price by delivering to Quintel shares of Purchaser Common Stock, the value of each share of Purchaser Common Stock shall be equal
to the 30-day VWAP on the date of the Put Notice; provided that in no event shall the value of each share of Purchaser Common
Stock be less than $1.00.

 

3.       Key
Employees. 

 

(a)       During
the period beginning on Warrant Exercise Date and ending on the second (2nd) anniversary of the Warrant Exercise Date,
no Key Employee shall be terminated from employment by the Company or from providing services to the Company, as an independent
contractor (other than a Termination for Cause) prior to the second (2nd) anniversary of the Warrant Exercise Date.
A “Termination for Cause” means the termination by the Company of a Key Employee’s employment with the
Company as a result of (i) the commission by such Key Employee of a fraud, (ii) such Key Employee’s conviction
of or plea of guilty or nolo contendere to a crime that constitutes a felony (or state law equivalent), if such felony is work-related,
materially impairs the Key Employee’s ability to perform services for the Company or results in material or financial harm
to the Company or its Affiliates, (iii) gross negligence or gross misconduct by such Key Employee with respect to the Company or
any Affiliate of the Company, (iii) such Key Employee’s willful or intentional failure to materially comply (to the
best of his or her ability) with a specific direction of the Board of Directors of the Company that is consistent with normal business
practices, which is not cured within three (3) days after written notice thereof to such Key Employee, (iv) such Key Employee’s
breach of a material employment policy of the Company, which is not cured within three (3) days after written notice thereof to
Executive, or (v) any other breach by such Key Employee of any employment agreement with the Company and which is not cured
within thirty (30) days after written notice thereof to such Key Employee.

 

(b)       The
Key Employees shall receive retention bonuses within ninety (90) days following the Warrant Exercise Date in an aggregate amount
equal to 8% of the net revenues (defined as gross revenues (determined in accordance with GAAP) of the Company less sales discounts,
sales returns, allowances and sales commissions) (determined in accordance with of the Company for the twelve-month period ending
on the Warrant Exercise Date; provided that the aggregate amount of such retention bonuses paid to the Key Employees shall not
exceed $20,000,000. The retention bonuses shall be paid by the Purchaser (in the Purchaser’s sole discretion) (i) in cash,
(ii) in shares of Purchaser Common Stock, or (iii) in a combination of cash and shares of Purchaser Common Stock. If the Purchaser
determines to pay all or a portion of the retention bonuses in shares of Purchaser Common Stock, the value of each share of Purchaser
Common Stock shall be based on the closing sale price of the Purchaser Common Stock on the Principal Trading Market on the day
immediately prior to the date that the Board of Directors of the Purchaser determines that the condition to the retention bonuses
has been met (subject to the rules of the Principal Trading Market); provided that in no event will such price be less than $1.00.

 

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(c)       Each
Key Employee will be eligible for performance-based bonuses based on continued employment with the Company, to be paid in a combination
of cash and equity awards under the Purchaser’s equity incentive plan.

 

(d)       For
a period of two (2) months following any full or partial Quintel Exchange, each holder of an option to Purchaser Common Stock shall
have the right to have such option converted into one or more of the following (at the Purchaser’s sole election): (i) shares
of Purchaser Common Stock (subject to the rules of the Principal Trading Market), (ii) an option to purchase shares of Purchaser
Common Stock (subject to the rules of the Principal Trading Market), and/or (iii) cash.

 

4.       Principal
Market Regulation. The Purchaser shall only issue shares of Purchaser Common Stock pursuant to this Agreement in an amount
that would not cause the Company to breach its obligations under the rules or regulations of the Principal Trading Market (the
 “Exchange Cap”), except that such limitation shall not apply in the event that the Purchaser (i) obtains the
approval of its stockholders as required by the applicable rules of the Principal Trading Market for issuances of shares of Purchaser
Common Stock in excess of such amount, or (ii) obtains a written opinion from outside counsel to Purchaser that such approval is
not required. Until such approval or written opinion is obtained, the Purchaser shall not issue shares of Purchaser Common Stock
pursuant to this Agreement in an amount greater than the Exchange Cap.

 

5.       Miscellaneous.

 

(a)       Further
Assurances; Additional Actions and Documents. Each Party shall take or cause to be taken such further actions, and shall execute,
deliver, and file or cause to be executed, delivered, and filed such further documents and instruments, as another Party may reasonably
request in order to effectuate more fully the purposes, intent, terms, and conditions of this Agreement.

 

(b)       Entire
Agreement; Modification; Benefit; Assignment.

 

		(i)	This Agreement along with the Purchase Agreement and the agreements contemplated thereby constitutes
the entire agreement of the Parties with respect to the matters contemplated herein and supersedes all prior oral and written agreements
with respect to such matters.

 

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		(ii)	This Agreement may not be amended or otherwise modified except by written instrument executed by
the Parties.

 

		(iii)	It is the explicit intention of the Parties that no person other than the Parties is or shall be
entitled to bring any action to enforce any provision of this Agreement against a Party, and that the covenants, undertakings,
and agreements set forth in this Agreement shall be solely for the benefit of, and shall be enforceable only by, the Parties or
their respective successors and permitted assigns.

 

		(iv)	This Agreement shall be binding upon and inure to the benefit of the Parties and their respective
successors and permitted assigns, but neither this Agreement nor any of the rights, interests, or obligations hereunder shall be
assigned by a Party without prior written consent of the other Parties hereto, which consent shall not be unreasonably withheld,
conditioned, or delayed, and no additional monetary consideration shall be exacted for such consent so long as the intended assignee
assumes in writing the obligations of the assignor hereunder.

 

(c)       Notices.
All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed effectively given: (a) upon
personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal
business hours of the recipient; if not, then on the next business day, (c) five (5) days after having been sent by registered
or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized
overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the
respective parties at the addresses set forth on the signature page hereto. Each Party shall have the right to change the place
to which notices shall be sent or delivered or to specify additional addresses to which copies of notices may be sent, in either
case by similar notice sent or delivered in like manner to the other Party.

 

(d)       Governing
Law; Choice of Forum; Waiver of Jury Trial. THIS AGREEMENT SHALL IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY
AND PERFORMANCE, BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAW. ALL LEGAL ACTIONS OR PROCEEDINGS BROUGHT AGAINST A PARTY WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN
ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE CITY OF WILMINGTON, DELAWARE, AND, BY EXECUTION AND DELIVERY OF THIS
AGREEMENT, EACH PARTY ACCEPTS, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, THE JURISDICTION OF THE AFORESAID COURTS AND IRREVOCABLY
AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT. EACH PARTY HEREBY EXPRESSLY AND IRREVOCABLY
WAIVES ANY CLAIM OR DEFENSE IN ANY SUCH ACTION OR PROCEEDING BASED ON ANY ALLEGED LACK OF PERSONAL JURISDICTION, IMPROPER VENUE
OR FORUM NON-CONVENIENS OR ANY SIMILAR BASIS. EACH PARTY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF ANY COMPLAINT, SUMMONS,
NOTICE OR OTHER PROCESS RELATING TO ANY LEGAL ACTION OR PROCEEDING BY DELIVERY THEREOF TO IT BY HAND OR BY MAIL TO THE ADDRESS
SET FORTH IN PARAGRAPH 7(a) HEREOF. NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY TO BRING PROCEEDINGS AGAINST ANOTHER
PARTY IN THE COURTS OF ANY OTHER JURISDICTION OR TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. EACH PARTY HEREBY IRREVOCABLY
AND UNCONDITIONALLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR COUNTERCLAIM ARISING IN CONNECTION WITH THIS
AGREEMENT.

 

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(e)       Severability.
If any part of any provision of this Agreement or any other agreement, document, or writing entered into or given pursuant to or
in connection with this Agreement shall be invalid or unenforceable under applicable law, said part shall be ineffective to the
extent of such invalidity or unenforceability only, without in any way affecting the remaining parts of said provision or the remaining
provisions of this Agreement or such agreement, document, or writing. Upon any determination that any such provision is invalid
or unenforceable, the Parties shall negotiate in good faith to modify this Agreement so as to affect the original intent of the
Parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the
fullest extent possible.

 

(f)       Waiver.
Neither the waiver by any Party of a breach of any of the provisions of this Agreement, nor the failure of any Party, on one or
more occasions, to enforce any of the provisions of this Agreement or to exercise any right or privilege hereunder shall thereafter
be construed as a waiver of any subsequent breach of a similar nature, or as a waiver of any of such provisions, rights, or privileges
hereunder.

 

(g)       Headings.
Section and subsection headings contained in this Agreement are inserted for convenience of reference only, shall not be deemed
to be a part of this Agreement for any purpose, and shall not in any way define or affect the meaning, construction, or scope of
any of the provisions hereof.

 

(h)       Counterparts.
This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any
electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method
and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

(i) Joint Effort.
Preparation of this Agreement has been a joint effort of the Parties and the resulting document shall not be construed more severely
against one Party than against another Party

 

 

[Signature Pages to Follow]

 

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IN WITNESS WHEREOF,
this Agreement has been duly executed and delivered by a duly authorized officer of each Party hereto as of the date first above
written.

 

	 	
        PANACEA LIFE SCIENCES, INC.

         
	 
	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Leslie Buttorff	 
	 	 	Name: 	Leslie Buttorff	 
	 	 	Title:	Chief Executive Officer	 
	 	 	 	 	 
	 	Address:	19194 West 45th Drive, Golden, CO 80403

	 
	 	 	 	 	 
	 	 	 	 	 
	 	QUINTEL-MC INCORPORATED	 
	 	 	 	 	 
	 	By: 	/s/ Leslie Buttorff	 
	 	 	Name:	Leslie Buttorff	 
	 	 	Title:	President	 
	 	 	 	 	 
	 	Address: 	

5910 S University Blvd, STE C18-193, Greenwood Village, CO 80121

	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 
	 	[EMPLOYEE]	 
	 	 	 	 	 
	 	Address:	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 
	 	[EMPLOYEE]	 
	 	 	 	 	 
	 	Address:	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 
	 	[EMPLOYEE]	 
	 	 	 	 	 
	 	Address:	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 
	 	[EMPLOYEE]	 
	 	 	 	 	 
	 	Address:	 
	 	 	 	 	 
	 	 	 	 	 
	 	22nd CENTURY GROUP, INC.	 
	 	 	 
	 	 	 	 	 
	 	By:	/s/ Clifford B. Fleet	 
	 	 	Name:	Clifford B. Fleet	 
	 	 	Title:	President & CEO	 
	 	 	 	 	 
	 	Address:	8560 Main Street, Suite 4, Williamsville, New York 14221

	 

  

    	 	6Exhibit 10.1

 

VOTING AGREEMENT

 

This Voting Agreement (this “Agreement”), dated as of November 14, 2019 is entered into by and between the undersigned stockholder (“Stockholder”) of Torotel, Inc., a Missouri corporation (the “Company”), and Standex International Corporation, a Delaware corporation (“Parent”). Parent and Stockholder are each sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

 

RECITALS

 

WHEREAS, concurrently with or following the execution of this Agreement, the Company, Parent, and Shockwave Acquisition Corporation, a Missouri corporation and wholly owned subsidiary of Parent (“Merger Sub”), have entered, or will enter, into an Agreement and Plan of Merger (as the same may be amended from time to time, the “Merger Agreement”), providing for, among other things, the merger (the “Merger”) of Merger Sub and the Company pursuant to the terms and conditions of the Merger Agreement;

 

WHEREAS, in order to induce Parent to enter into the Merger Agreement, Stockholder is willing to make certain representations, warranties, covenants, and agreements as set forth in this Agreement with respect to the shares of common stock, par value $0.01 per share, of the Company (“Company Common Stock”) Beneficially Owned by Stockholder and set forth below Stockholder’s signature on the signature page hereto (the “Original Shares” and, together with any additional shares of Company Common Stock pursuant to Section 6 hereof, the “Shares”); and

 

WHEREAS, as a condition to its willingness to enter into the Merger Agreement, Parent has required that Stockholder, and Stockholder has agreed to, execute and deliver this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants, and agreements set forth below and for other good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the Parties hereto, intending to be legally bound, do hereby agree as follows:

 

1.                                      Definitions.  For purposes of this Agreement, capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed to such terms in the Merger Agreement. When used in this Agreement, the following terms in all of their tenses, cases, and correlative forms shall have the meanings assigned to them in this Section 1.

 

“Beneficially Own” or “Beneficial Ownership” has the meaning assigned to such term in Rule 13d-3 under the Exchange Act, and a Person’s beneficial ownership of securities shall be calculated in accordance with the provisions of such rule (in each case, irrespective of whether or not such rule is actually applicable in such circumstance). For the avoidance of doubt, “Beneficially Own” and “Beneficial Ownership” shall also include record ownership of securities.

 

“Beneficial Owner” shall mean the Person who Beneficially Owns the referenced securities.

 

 

2.                                      Representations of Stockholder.  Stockholder represents and warrants to Parent that:

 

(a)                                 Ownership of Shares.  Stockholder: (i) is the Beneficial Owner of all of the Original Shares free and clear of any proxy, voting restriction, adverse claim, or other Liens, other than those created by this Agreement or under applicable federal or state securities laws; and (ii) has the sole voting power over all of the Original Shares. Except pursuant to this Agreement, there are no options, warrants, or other rights, agreements, arrangements, or commitments of any character to which Stockholder is a party relating to the pledge, disposition, or voting of any of the Original Shares and there are no voting trusts or voting agreements with respect to the Original Shares.

 

(b)                                 Disclosure of All Shares Owned.  Stockholder does not Beneficially Own any shares of Company Common Stock other than the Original Shares.

 

(c)                                  Power and Authority; Binding Agreement. Stockholder has full power and authority and legal capacity to enter into, execute, and deliver this Agreement and to perform fully Stockholder’s obligations hereunder. This Agreement has been duly and validly executed and delivered by Stockholder and constitutes the legal, valid, and binding obligation of Stockholder, enforceable against Stockholder in accordance with its terms.

 

(d)                                 No Conflict. The execution and delivery of this Agreement by Stockholder does not, and the consummation of the transactions contemplated hereby and the compliance with the provisions hereof will not, conflict with or violate any Law applicable to Stockholder or result in any breach of or violation of, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration, or cancellation of, or result in the creation of any Lien on any of the Shares pursuant to, any agreement or other instrument or obligation binding upon Stockholder or any of the Shares.

 

(e)                                  No Consents. No consent, approval, Order, or authorization of, or registration, declaration, or filing with, any Governmental Entity or any other Person on the part of Stockholder is required in connection with the valid execution and delivery of this Agreement. No consent of Stockholder’s spouse is necessary under any “community property” or other laws in order for Stockholder to enter into and perform its obligations under this Agreement.

 

(f)                                   No Litigation. There is no action, suit, investigation, or proceeding (whether judicial, arbitral, administrative, or other) (each an “Action”) pending against, or, to the knowledge of Stockholder, threatened against or affecting, Stockholder that could reasonably be expected to materially impair or materially adversely affect the ability of Stockholder to perform Stockholder’s obligations hereunder or to consummate the transactions contemplated by this Agreement on a timely basis.

 

3.                                      Agreement to Vote and Approve.  Stockholder irrevocably and unconditionally agrees during the term of this Agreement, at any annual or special meeting of the Company called with respect to the following matters, and at every adjournment or postponement thereof, and on every action or approval by written consent or consents of the Company stockholders

 

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with respect to any of the following matters, to vote or cause the holder of record to vote the Shares: (i) in favor of (A) the Merger Agreement and the Merger and the other transactions contemplated by the Merger Agreement, and (B) any proposal to adjourn or postpone such meeting of stockholders of the Company to a later date if there are not sufficient votes to approve the Merger; and (ii) against (X) any Takeover Proposal, Company Acquisition Agreement, or any of the transactions contemplated thereby, (Y) any action, proposal, transaction, or agreement which could reasonably be expected to result in a breach of any covenant, representation or warranty, or any other obligation or agreement of the Company under the Merger Agreement or of Stockholder under this Agreement, and (Z) any action, proposal, transaction, or agreement that could reasonably be expected to impede, interfere with, delay, discourage, adversely affect, or inhibit the timely consummation of the Merger or the fulfillment of Parent’s, the Company’s, or Merger Sub’s conditions under the Merger Agreement or change in any manner the voting rights of any class of shares of the Company (including any amendments to the Company Charter Documents).

 

4.                                      No Voting Trusts or Other Arrangement.  Stockholder agrees that during the term of this Agreement Stockholder will not, and will not permit any entity under Stockholder’s control to, deposit any of the Shares in a voting trust, grant any proxies with respect to the Shares (other than proxies solicited by the Company Board to approve the Merger or related matters consistent with Section 3 hereof), or subject any of the Shares to any arrangement with respect to the voting of the Shares other than agreements entered into with Parent.

 

5.                                      Transfer and Encumbrance.  Stockholder agrees that during the term of this Agreement, Stockholder will not, directly or indirectly, transfer, sell, offer, exchange, assign, pledge, convey any legal or Beneficial Ownership interest in or otherwise dispose of (by merger (including by conversion into securities or other consideration), by tendering into any tender or exchange offer, by operation of law, or otherwise), or encumber (“Transfer”) any of the Shares or enter into any contract, option, or other agreement with respect to, or consent to, a Transfer of, any of the Shares or Stockholder’s voting or economic interest therein. Any attempted Transfer of Shares or any interest therein in violation of this Section 5 shall be null and void.

 

6.                                      Additional Shares.  Stockholder agrees that all shares of Company Common Stock that Stockholder purchases, acquires the right to vote, or otherwise acquires Beneficial Ownership of after the execution of this Agreement and prior to the Expiration Time shall be subject to the terms and conditions of this Agreement and shall constitute Shares for all purposes of this Agreement. In the event of any stock split, stock dividend, merger, reorganization, recapitalization, reclassification, combination, exchange of shares, or the like of the capital stock of the Company affecting the Shares, the terms of this Agreement shall apply to the resulting securities and such resulting securities shall be deemed to be “Shares” for all purposes of this Agreement.

 

7.                                      Waiver of Appraisal and Dissenters’ Rights.  To the extent permitted by Law, Stockholder hereby irrevocably and unconditionally waives, and agrees not to assert or perfect, any rights of appraisal or rights to dissent in connection with the Merger that Stockholder may have by virtue of ownership of the Shares.

 

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8.                                      Termination.  This Agreement shall terminate upon the earliest to occur of (the “Expiration Time”): (a) the Effective Time; (b) the date on which the Merger Agreement is terminated in accordance with its terms; and (c) the termination of this Agreement by mutual written consent of the Parties. Nothing in this Section 8 shall relieve or otherwise limit the liability of any Party for any intentional breach of this Agreement prior to such termination.

 

9.                                      No Solicitation.  Subject to Section 10, Stockholder shall not, and shall use it reasonable best efforts to cause its Representatives not to: (a) directly or indirectly solicit, seek, initiate, knowingly encourage, or knowingly facilitate any inquiries regarding, or the making of, any submission or announcement of a proposal or offer that constitutes, or could reasonably be expected to lead to, any Takeover Proposal; (b) directly or indirectly engage in, continue, or otherwise participate in any discussions or negotiations regarding, or furnish or afford access to any other Person any information in connection with or for the purpose of encouraging or facilitating, any proposal or offer that constitutes, or could reasonably be expected to lead to, any Takeover Proposal; (c) enter into any agreement, agreement in principle, letter of intent, memorandum of understanding, or similar arrangement with respect to a Takeover Proposal; (d) solicit proxies with respect to a Takeover Proposal (other than the Merger and the Merger Agreement) or otherwise encourage or assist any Person in taking or planning any action that could reasonably be expected to compete with, restrain, or otherwise serve to interfere with or inhibit the timely consummation of the Merger in accordance with the terms of the Merger Agreement; or (e) initiate a stockholders’ vote or action by written consent of the Company’s stockholders with respect to a Takeover Proposal.

 

10.                               No Agreement as Director or Officer.  Stockholder makes no agreement or understanding in this Agreement in Stockholder’s capacity as a director or officer of the Company or any of its subsidiaries (if Stockholder holds such office), and nothing in this Agreement: (a) will limit or affect any actions or omissions taken by Stockholder in stockholder’s capacity as such a director or officer, including in exercising rights under the Merger Agreement, and no such actions or omissions shall be deemed a breach of this Agreement; or (b) will be construed to prohibit, limit, or restrict Stockholder from exercising Stockholder’s fiduciary duties as an officer or director to the Company or its stockholders.

 

11.                               Further Assurances.  Stockholder agrees, from time to time, and without additional consideration, to execute and deliver such additional proxies, documents, and other instruments and to take all such further action as Parent may reasonably request to consummate and make effective the transactions contemplated by this Agreement.

 

12.                               Stop Transfer Instructions.  At all times commencing with the execution and delivery of this Agreement and continuing until the Expiration Time, in furtherance of this Agreement, Stockholder hereby authorizes the Company or its counsel to notify the Company’s transfer agent that there is a stop transfer order with respect to all of the Shares (and that this Agreement places limits on the voting and transfer of the Shares), subject to the provisions hereof and provided that any such stop transfer order and notice will immediately be withdrawn and terminated by the Company following the Expiration Time.

 

13.                               Specific Performance.  Each Party hereto acknowledges that it will be impossible to measure in money the damage to the other Party if a Party hereto fails to comply with any of

 

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the obligations imposed by this Agreement, that every such obligation is material and that, in the event of any such failure, the other Party will not have an adequate remedy at Law or damages. Accordingly, each Party hereto agrees that injunctive relief or other equitable remedy, in addition to remedies at Law or damages, is the appropriate remedy for any such failure and will not oppose the seeking of such relief on the basis that the other Party has an adequate remedy at Law. Each Party hereto agrees that it will not seek, and agrees to waive any requirement for, the securing or posting of a bond in connection with the other Party’s seeking or obtaining such equitable relief.

 

14.                               Entire Agreement.  This Agreement supersedes all prior agreements, written or oral, between the Parties hereto with respect to the subject matter hereof and contains the entire agreement between the Parties with respect to the subject matter hereof. This Agreement may not be amended or supplemented, and no provisions hereof may be modified or waived, except by an instrument in writing signed by both of the Parties hereto. No waiver of any provisions hereof by either Party shall be deemed a waiver of any other provisions hereof by such Party, nor shall any such waiver be deemed a continuing waiver of any provision hereof by such Party.

 

15.                               Notices.  All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or email of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 15):

 

	
If to Parent:
    	
 
    	
Standex International Corporation

   11 Keewaydin Drive, Suite 300

   Salem, New Hampshire 03079

   Attention: General Counsel/Chief Legal Officer

   Facsimile: (603) 893-7324

   Email: aglass@standex.com

 
    
	
with a copy (which will not constitute notice to   Parent or Merger Sub) to:
    	
 
    	
Reinhart Boerner Van Deuren s.c.

   1000 North Water Street, Suite 1700

   Milwaukee, Wisconsin 53202

   Facsimile: 414-298-8097

   E-mail: blombard@reinhartlaw.com

   Attention: Benjamin G. Lombard, Esq.
    

 

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If to Stockholder, to the address, email address, or facsimile number set forth for Stockholder on the signature page hereof:

 

	
with a copy (which will not constitute notice to the   Company) to:
    	
 
    	
Husch Blackwell, LLP

   4801 Main Street, Suite 1000

   Kansas City, Missouri 64112

   Facsimile: (816) 983-8080

   Email: edward.wilson@huschblackwell.com

   Attention: Edward Wilson
    

 

16.                               Miscellaneous.

 

(a)                                 Governing Law.  This Agreement, and all Legal Actions (whether based on contract, tort, or statute) arising out of or relating to this Agreement or the actions of any of the Parties in the negotiation, administration, performance, or enforcement hereof, shall be governed by and construed in accordance with the internal laws of the State of Missouri without giving effect to any choice or conflict of law provision or rule (whether of the State of Missouri or any other jurisdiction) that would cause the application of Laws of any jurisdiction other than those of the State of Missouri.

 

(b)                                 Submission to Jurisdiction. Each of the Parties hereto irrevocably agrees that any Legal Action with respect to this Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder brought by the other Party hereto or its successors or assigns shall be brought and determined exclusively in the State of Missouri, or in the event (but only in the event) that such court does not have subject matter jurisdiction over such Legal Action, in any state or federal court located within the State of Missouri. Each of the Parties hereto agrees that mailing of process or other papers in connection with any such Legal Action in the manner provided in Section 15 or in such other manner as may be permitted by applicable Laws, will be valid and sufficient service thereof. Each of the Parties hereto hereby irrevocably submits with regard to any such Legal Action for itself and in respect of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any action relating to this Agreement or any of the transactions contemplated by this Agreement in any court or tribunal other than the aforesaid courts. Each of the Parties hereto hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense, counterclaim, or otherwise, in any Legal Action with respect to this Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder: (i) any claim that it is not personally subject to the jurisdiction of the above named courts for any reason other than the failure to serve process in accordance with this Section 16(b); (ii) any claim that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment, or otherwise); and (iii) to the fullest extent

 

6

 

permitted by the applicable Law, any claim that (x) the suit, action, or proceeding in such court is brought in an inconvenient forum, (y) the venue of such suit, action, or proceeding is improper, or (z) this Agreement, or the subject matter hereof, may not be enforced in or by such courts.

 

(c)                                  Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT: (I) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION; (II) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER; (III) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY; AND (IV) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 16(C).

 

(d)                                 Expenses. All costs and expenses incurred in connection with this Agreement shall be paid by the Party incurring such cost or expense, whether or not the Merger is consummated.

 

(e)                                  Severability. If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal, or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

 

(f)                                   Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

 

(g)                                  Section Headings. All section headings herein are for convenience of reference only and are not part of this Agreement, and no construction or reference shall be derived therefrom.

 

(h)                                 Assignment. Neither Party to this Agreement may assign any of its rights or obligations under this Agreement without the prior written consent of the other Party hereto, except that Parent may assign, in its sole discretion, all or any of its rights, interests and obligations hereunder to any of its Affiliates. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by the Parties and their

 

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respective permitted successors and assigns. Any assignment contrary to the provisions of this Section 16(h) shall be null and void.

 

(i)                                     No Third-Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to or shall confer upon any Person other than the Parties and their respective successors and permitted assigns any legal or equitable right, benefit, or remedy of any nature under or by reason of this Agreement

 

[SIGNATURE PAGE FOLLOWS]

 

8

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

 

 

	
 
    	
PARENT
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
STOCKHOLDER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Number   of Shares of Company Common Stock Beneficially Owned as of the date of this 
    
	
 
    	
Agreement:   
    
	
 
    	
Street   Address: 
    
	
 
    	
City/State/Zip   Code: 
    
	
 
    	
Fax:   
    
	
 
    	
Email:

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