Document:

Exhibit

EXHIBIT 10.1

EXECUTION VERSION
AGREEMENT 
This Agreement (this “Agreement”) is made and entered into as of October 14, 2015 by and among Hardinge Inc., a New York corporation (the “Company”), Privet Fund LP, a Delaware limited partnership, and Privet Fund Management, LLC, a Delaware limited liability company (collectively, “Privet”) (each of the Company and Privet, a “Party” to this Agreement, and collectively, the “Parties”).
RECITALS
WHEREAS, the Company and Privet have engaged in various discussions and communications concerning the Company’s business, financial performance and strategic plans;
WHEREAS, as of the date hereof, Privet is deemed to beneficially own shares of Common Stock of the Company (the “Common Stock”) totaling, in the aggregate, 964,040 shares (the “Shares”), or approximately 7.5%, of the Common Stock issued and outstanding on the date hereof; and
WHEREAS, as of the date hereof, the Company and Privet have determined to come to an agreement with respect to the composition of the Board of Directors of the Company (the “Board”) and certain other matters, as provided in this Agreement.
NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound hereby, agree as follows:

1.    Nomination and Election of Directors; Board Committees and Related Agreements.

(a)Nomination and Election of Directors.  Immediately after the execution of this Agreement, the Board and all applicable committees and subcommittees of the Board shall take all necessary actions to (1) set the size of the Board at eight (8) members and (2) appoint Benjamin Rosenzweig (the “Privet Nominee”) as a director of the Company.  The Privet Nominee shall be nominated to stand for election at the Company’s 2016 annual meeting of stockholders (the “2016 Annual Meeting”) as a Class III director with a term expiring at the 2018 annual meeting of stockholders (the “2018 Annual Meeting”).  After the appointment of the Privet Nominee in accordance with this Section 1(a) and before the appointment of the Additional Independent Nominee (as defined below) in accordance with Section 1(a)(i), the Board and all applicable committees and subcommittees of the Board shall not (i) increase the size of the Board to more than eight (8) directors or (ii) seek to change the classes on which the Board members serve, in each case without the prior written consent of Privet.  

(i)So long as Privet’s aggregate beneficial ownership of Common Stock is in excess of the Minimum Ownership Threshold (as defined below), commencing on the earliest of (1) March 1, 2016 and (2) the date upon which the Company publicly announces that the Board has terminated that certain strategic review process announced on August 24, 2015, the Company and Privet will mutually and promptly seek to identify a new director who qualifies as “independent” pursuant to the Securities and Exchange Commission and NASDAQ listing standards to serve as a Class II director with a term expiring at the 2017 annual meeting of stockholders (the “2017 Annual Meeting”) or expiring at the annual meeting of stockholders in 2020, as applicable (such director, the “Additional Independent Nominee” and together with the Privet Nominee, the “New Nominees”).  The search process for the Additional Independent Nominee shall be conducted by the Nominating and Governance Committee, which shall give due consideration to any candidate suggested by Privet.  After the Nominating and Governance Committee and Privet jointly recommend an Additional Independent Nominee to the Board, the Board shall vote on the appointment of such Additional Independent Nominee to the Board.  In connection with any such appointment to the Board, the Board shall take all necessary actions to (1) set the size of the Board at nine (9) members and (2) appoint, as soon as practicable, the Additional Independent Nominee (who, upon election at an annual meeting of stockholders, will be a Class II director with a term expiring at the 2017 Annual Meeting or expiring at the annual meeting of stockholders in 2020, as applicable).  After the appointment of the Additional Independent Nominee in accordance with this Section 1(a)(i) and until the size of the Board is set at 

eight (8) members in accordance with Section 1(a)(ii), the Board and all applicable committees and subcommittees of the Board shall not (i) increase the size of the Board to more than nine (9) directors or (ii) seek to change the classes on which the Board members serve, in each case without the prior written consent of Privet.

(ii)Not later than the 2017 Annual Meeting, the Board and all applicable committees and subcommittees of the Board shall take all necessary actions to set the size of the Board at eight (8) members (subject to further increase or decrease by the Board after the 2017 Annual Meeting), provided, that in doing so, none of the New Nominees (or any Replacement Privet Director, if applicable) shall be required to resign as a director.

(iii)Prior to the mailing of its definitive proxy statement for the 2016 Annual Meeting, the Board and all applicable committees and subcommittees of the Board shall take all necessary actions to nominate the Privet Nominee for election to the Board at the 2016 Annual Meeting as a Class III director with a term expiring at the 2018 Annual Meeting.  If the Additional Independent Nominee is identified and approved by the Board in accordance with Section 1(a)(i) prior to the mailing of the Company’s definitive proxy statement for the 2016 Annual Meeting, the Board and all applicable committees and subcommittees of the Board shall take all necessary actions to nominate the Additional Independent Nominee for election to the Board at the 2016 Annual Meeting as a Class II director with a term expiring at the 2017 Annual Meeting. The Company will recommend, support and solicit proxies for the election of the Privet Nominee (or a Privet Replacement Director (as defined below), if applicable), and the Additional Independent Nominee, if applicable, at the 2016 Annual Meeting in the same manner as for the other nominees nominated by the Board at the 2016 Annual Meeting. 

(iv)If the Privet Nominee (or any Privet Replacement Director) is unable or unwilling to serve as a director, resigns as a director or is removed as a director prior to the 2017 Annual Meeting, and at such time Privet beneficially owns in the aggregate at least the lesser of five percent (5.0%) of the Company’s then outstanding Common Stock and 641,835 shares of Common Stock (subject to adjustment for stock splits, reclassifications, combinations and similar adjustments) (the “Minimum Ownership Threshold”), Privet shall have the ability to recommend a substitute person(s) in accordance with this Section 1(a)(iv) (any such replacement nominee shall be referred to as the “Privet Replacement Director”).  Any Privet Replacement Director recommended by Privet must qualify as “independent” pursuant to the Securities and Exchange Commission and NASDAQ listing standards. The Nominating and Governance Committee shall make its determination and recommendation regarding whether such person so qualifies as independent within five (5) business days after (i) such nominee has submitted to the Company the documentation required by Section 1(b)(v) herein and (ii) representatives of the Company’s Board have conducted customary interview(s) of such nominee.  The Company shall use its reasonable best efforts to conduct any interview(s) contemplated in this section as promptly as practicable, but in any case, assuming reasonable availability of the nominee, within twenty (20) business days, after Privet’s submission of such nominee.  In the event the Nominating and Governance Committee does not accept a substitute person recommended by Privet as the Privet Replacement Director as a result of such person not so qualifying as independent, Privet shall have the right to recommend additional substitute person(s) whose appointment shall be subject to the Nominating and Governance Committee recommending such person in accordance with the procedures described above.  Upon the recommendation of a Privet Replacement Director nominee by the Nominating and Governance Committee, the Board shall vote on the appointment of such Privet Replacement Director to the Board no later than five (5) business days after the Nominating and Governance Committee recommendation of such Privet Replacement Director; provided, however, that if the Board does not elect such Privet Replacement Director to the Board as a result of such person not meeting the independence standards described above, the Parties shall continue to follow the procedures of this Section 1(a)(iv) until a Privet Replacement Director is elected to the Board.  Any Privet Replacement Director designated pursuant to this Section 1(a)(iv) replacing the Privet Nominee prior to the 2016 Annual Meeting shall stand for election at the 2016 Annual Meeting as a Class III director with a term expiring at the 2018 Annual Meeting. If at any time Privet’s aggregate beneficial ownership of Common Stock decreases to less than the Minimum Ownership Threshold, the right of Privet pursuant to this Section 1(a)(iv) to participate in the recommendation of a Privet Replacement Director to fill the vacancy caused by any such resignation of the Privet Nominee or any Privet Replacement Director shall automatically terminate.  

Notwithstanding the foregoing, in the event that Privet fails to comply with its obligations in Section 1(b)(iii) prior to the 2016 Annual Meeting, the Company shall not be required to nominate, recommend, support or solicit proxies for the election of the Privet Nominee or any Privet Replacement Director for election to the Board at the 2016 Annual Meeting.

(v)During the Standstill Period (as defined below), the Company shall not amend its By-Laws (as defined below) in any manner relating to the nomination, election, or qualification of the members of the Board, or implement any other restriction with respect thereto, without the prior written consent of Privet. 

(b)Additional Agreements.  

(i)Privet agrees that it will cause its controlled Affiliates and Associates to comply with the terms of this Agreement and shall be responsible for any breach of this Agreement by any such controlled Affiliate or Associate. As used in this Agreement, the terms “Affiliate” and “Associate” shall have the respective meanings set forth in Rule 12b-2 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, or the rules or regulations promulgated thereunder (the “Exchange Act”) and shall include all persons or entities that at any time during the term of this Agreement become Affiliates or Associates of any person or entity referred to in this Agreement.

(ii)Upon execution of this Agreement, Privet hereby agrees that it will not, and that it will not permit any of its controlled Affiliates or Associates to, (1) nominate or recommend for nomination any person for election at the 2016 Annual Meeting, directly or indirectly, (2) submit any proposal for consideration at, or bring any other business before, the 2016 Annual Meeting, directly or indirectly, or (3) initiate, encourage or participate in any “withhold” or similar campaign with respect to the 2016 Annual Meeting, directly or indirectly. Privet shall not publicly or privately encourage or support any other stockholder to take any of the actions described in this Section 1(b)(ii), provided, however, that the foregoing shall not be deemed to limit the exercise by the New Nominees (or any Privet Replacement Directors) of their fiduciary duties and such exercise by such individuals shall not be a breach of this Agreement.

(iii)Privet agrees that it will (1) continue to have the right to vote all of the Shares held as of the date hereof through the 2016 Annual Meeting and (2) appear in person or by proxy at the 2016 Annual Meeting and vote all shares of Common Stock of the Company beneficially owned by Privet at the meeting (x) in favor of the slate of directors recommended by the Board, (y) in favor of the ratification of the appointment of Ernst & Young LLP as the Company’s independent registered public accounting firm for the year ending December 31, 2016 and (z) in accordance with the Board’s recommendation with respect to the advisory vote on executive compensation.

(iv)Concurrently with the execution of this Agreement, Privet has delivered to the Company an irrevocable resignation letter pursuant to which the Privet Nominee shall resign from the Board and all applicable committees and subcommittees thereof if at any time Privet’s aggregate beneficial ownership of Common Stock decreases to less than the Minimum Ownership Threshold or if this Agreement is terminated pursuant to Section 5(b).  In addition, prior to the appointment of any Privet Replacement Director to the Board pursuant to Section 1(a)(iv), Privet agrees to obtain from such Privet Replacement Director and deliver to the Company an irrevocable resignation letter pursuant to which the Privet Replacement Director shall resign from the Board and all applicable committees and subcommittees thereof if at any time Privet’s aggregate beneficial ownership of Common Stock decreases to less than the Minimum Ownership Threshold or if this Agreement is terminated pursuant to Section 5(b).   

(v)Prior to the date of this Agreement, the Privet Nominee has submitted to the Company (x) a fully completed copy of the Company’s standard director & officer questionnaire and other reasonable and customary director onboarding documentation required by the Company of all current directors in connection with the appointment or election of new Board members, (y) the information required pursuant to Section 5 of Article III of the Company’s By-Laws (the “By-Laws”) and (z) a written acknowledgment that the Privet Nominee agrees to be bound by all current policies, codes and guidelines applicable to directors of the Company in existence and publicly available at 

www.ir.hardinge.com/governance.cfm as of the date hereof. Any Privet Replacement Director will also promptly (but in any event prior to being placed on the Board in accordance with this Agreement) submit to the Company (a) a fully completed copy of the Company’s standard director & officer questionnaire and other reasonable and customary director onboarding documentation required by the Company of all current directors in connection with the appointment or election of new Board members, (b) the information required pursuant to Section 5 of Article III of the By-Laws and (c) a written acknowledgment that the Privet Replacement Director agrees to be bound by all current policies, codes and guidelines applicable to directors of the Company in existence and publicly available at www.ir.hardinge.com/governance.cfm as of the date of such director’s appointment to the Board .  

(vi)Privet agrees that the Board or any committee or subcommittees thereof, in the exercise of its fiduciary duties, may recuse the Privet Nominee (or any Privet Replacement Director, if applicable) from the portion of any Board or committee or subcommittee meeting at which the Board or any such committee or subcommittee is evaluating and/or taking action with respect to (i) the ownership of Shares by Privet, (ii) the exercise of any of the Company’s rights or enforcement of any of the obligations under this Agreement, (iii) any action taken in response to actions taken or proposed by Privet or its Affiliates with respect to the Company or (iv) any transaction proposed by, or with, Privet or its Affiliates.  

(vii)  Notwithstanding the foregoing, Privet’s obligations pursuant to Section 1 and Section 2 hereof are subject to the Company’s compliance with its obligations in Section 1(a) and Section 1(c) hereof.  In the event that the Company fails to comply with its obligations in Section 1(a) and Section 1(c) hereof, Privet shall not be required to comply with Section 1(b) and Section 2 hereof.

(viii)Privet agrees that the Privet Nominee’s compensation as a non-employee director for 2015 will be pro-rated based on the date of the Privet Nominee’s commencement of services as a director.  

(c)Strategic Alternatives Matters.  Subject to applicable laws and regulations, if the Board establishes a special committee of the Board to oversee that certain strategic review process announced on August 24, 2015 (the “Special Committee”), the Board and all applicable committees and subcommittees of the Board shall take all actions necessary to ensure that during the Standstill Period, the members of the Special Committee include the Privet Nominee (or any Privet Replacement Director, if applicable).  In addition, during the Standstill Period, any meeting of the Board regarding such strategic review process shall conclude with an executive session of the independent directors unless such session is waived by all of the independent directors. 

2.    Standstill Provisions.

(a)Privet agrees that from the date of this Agreement until the earlier of (x) immediately following the certification of the voting results from the 2016 Annual Meeting and (y) the termination of this Agreement in accordance with its terms (the “Standstill Period”), neither it nor any of its Affiliates or Associates under its control or direction will, and it will cause each of its Affiliates and Associates under its control not to, directly or indirectly, in any manner:

(i)solicit, or knowingly encourage or in any way engage in any solicitation of, any proxies or consents or become a “participant” in a “solicitation” as such terms are defined in Regulation 14A under the Exchange Act of proxies or consents (including, without limitation, any solicitation of consents that seeks to call a special meeting of stockholders), in each case, with respect to securities of the Company;

(ii)advise, knowingly encourage, support or influence any person with respect to the voting or disposition of any securities of the Company at any annual or special meeting of stockholders, except in accordance with Section 1, or seek to do so;

(iii)deposit any Common Stock in any voting trust or subject any Common Stock to any arrangement or agreement with respect to the voting of any Common Stock, other than 

any such voting trust, arrangement or agreement solely among the Affiliates or Associates of Privet and otherwise in accordance with this Agreement;

(iv)seek, alone or in concert with others, representation on the Board, except as specifically contemplated in Section 1;

(v)seek or knowingly encourage any person to submit nominations in furtherance of a “contested solicitation” or take other applicable action for the election or removal of directors with respect to the Company;

(vi)form or join in a partnership, limited partnership, syndicate or other group, including, without limitation, a group as defined under Section 13(d) of the Exchange Act, with respect to any Common Stock or take any other action that would divest Privet of the ability to vote or cause to be voted its shares of Common Stock in accordance with this Agreement;

(vii)act alone or in concert with others to control or seek to control the management or the Board (excluding actions (A) specifically contemplated in Section 1 and (B) taken by the Privet Nominee (or Privet Replacement Director, if applicable) in his or her capacity as a director of the Company);

(viii)with respect to the Company or the Common Stock, make any communication or announcement (other than in the ordinary course of its business on a confidential basis to their investors) stating how its shares of Common Stock will be voted, or the reasons therefor or otherwise communicate pursuant to Rule 14a-1(l)(2)(iv) under the Exchange Act;

(ix)enter into any arrangements, understanding or agreements (whether written or oral) with, or advise, finance, assist or knowingly encourage, any other person in connection with any of the foregoing, or make any investment in or enter into any arrangement with any other person that engages, or offers or proposes to engage, in any of the foregoing;

(x)make any public statement or public disclosure regarding any intent, purpose, plan or proposal with respect to the Board, the Company, its management, policies or affairs or any of its securities or assets (including with respect to any merger, acquisition, recapitalization, restructuring, disposition or other business combination involving the Company) or this Agreement, that is inconsistent with the provisions of this Agreement, including any intent, purpose, plan or proposal that is conditioned on, or would require waiver, amendment, nullification or invalidation of, any provision of this Agreement or take any action that could require the Company to make any public disclosure relating to any such intent, purpose, plan, proposal or condition;

(xi)purchase or cause to be purchased or otherwise acquire or agree to acquire beneficial ownership of any Common Stock or other securities issued by the Company, or any securities convertible into or exchangeable for Common Stock, if, in any such case immediately after the taking of such action, Privet together with its Affiliates and Associates would, in the aggregate, beneficially own 15% or more of the then outstanding shares of Common Stock;

(xii)otherwise take, or solicit, cause or knowingly encourage others to take, any action inconsistent with any of the foregoing; or

(xiii)take any action challenging the validity or enforceability of this Section 2 or this Agreement, or request the Company or Board to amend or waive any provision of this Section 2 (provided, that Privet may make confidential requests to the Board to amend or waive any provision of this Section 2, which the Board (excluding the New Nominees (and Privet Replacement Director, if applicable)) may accept or reject in its sole discretion, so long as any such request is not publicly disclosed by Privet and is made by Privet in a manner that does not require the public disclosure thereof by the Company, Privet or any other person).

(b)Except as expressly provided in Section 1 or Section 2(a), Privet shall be entitled to vote the Shares on any other proposal duly brought before the 2016 Annual Meeting or otherwise vote as Privet determines in its sole discretion.  

3.    Representations and Warranties of the Company.
The Company represents and warrants to Privet that (a) the Company has the corporate power and authority to execute this Agreement and to bind it thereto, (b) this Agreement has been duly and validly authorized, executed and delivered by the Company, constitutes a valid and binding obligation and agreement of the Company, and is enforceable against the Company in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles and (c) the execution, delivery and performance of this Agreement by the Company does not and will not violate or conflict with (i) any law, rule, regulation, order, judgment or decree applicable to the Company, or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could constitute such a breach, violation or default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which the Company is a party or by which it is bound.

4.Representations and Warranties of Privet.
Privet represents and warrants to the Company that (a) the authorized signatory of Privet set forth on the signature page hereto has the power and authority to execute this Agreement and any other documents or agreements to be entered into in connection with this Agreement and to bind Privet thereto, (b) this Agreement has been duly authorized, executed and delivered by Privet, and is a valid and binding obligation of Privet, enforceable against Privet in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles, (c) the execution of this Agreement, the consummation of any of the transactions contemplated hereby, and the fulfillment of the terms hereof, in each case in accordance with the terms hereof, will not conflict with, or result in a breach or violation of the organizational documents of Privet as currently in effect, (d) the execution, delivery and performance of this Agreement by Privet does not and will not violate or conflict with (i) any law, rule, regulation, order, judgment or decree applicable to Privet, or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could constitute such a breach, violation or default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which Privet is a party or by which it is bound, (e) as of the date of this Agreement, Privet is deemed to beneficially own in the aggregate 964,040 shares of Common Stock, (f) as of the date hereof, Privet does not currently have, and does not currently have any right to acquire or any interest in any other securities of the Company (or any rights, options or other securities convertible into or exercisable or exchangeable (whether or not convertible, exercisable or exchangeable immediately or only after the passage of time or the occurrence of a specified event) for such securities or any obligations measured by the price or value of any securities of the Company or any of its Affiliates, including any swaps or other derivative arrangements designed to produce economic benefits and risks that correspond to the ownership of Common Stock, whether or not any of the foregoing would give rise to beneficial ownership (as determined under Rule 13d-3 promulgated under the Exchange Act), and whether or not to be settled by delivery of Common Stock, payment of cash or by other consideration, and without regard to any short position under any such contract or arrangement), (g) any Additional Independent Nominee will be independent of Privet, (h) Privet has not, directly or indirectly, compensated or agreed to, and will not, compensate the New Nominees (or any Privet Replacement Director, as applicable) for his or her respective service as a nominee or director of the Company with any cash, securities (including any rights or options convertible into or exercisable for or exchangeable into securities or any profit sharing agreement or arrangement), or other form of compensation directly or indirectly related to the Company or its securities, other than any performance-based compensation tied to Privet’s investments, and (i) no person other than Privet has any rights with respect to the Shares. 

5.Termination.
This Agreement shall remain in full force and effect until the earliest of:
(a)     the certification of the voting results of the 2017 Annual Meeting; 
(b)    the Company, the Board or Privet materially breaches an obligation under this Agreement, provided that the non-breaching party elects to terminate this Agreement and, if such breach is curable, such non-breaching party has provided written notice of such breach (which notice shall specify in reasonable detail the facts and circumstances surrounding such breach) and such breach has not been cured within a ten (10) day period; provided, that if this Agreement is terminated 

pursuant to this Section 5(b) as a result of an uncured breach by Privet, the Privet Nominee (or the Privet Replacement Director, if applicable) agree to, and Privet agrees to cause the Privet Nominee (or the Privet Replacement Director, if applicable) to, promptly resign from the Board; or
(c)    such other date established by mutual written agreement of the Parties hereto.

6.Press Release.
Promptly following the execution of this Agreement, the Company and Privet shall jointly issue a mutually agreeable press release, in substantially the form attached hereto as Annex A (the “Mutual Press Release”), announcing certain terms of this Agreement. Prior to the issuance of the Mutual Press Release and subject to the terms of this Agreement, neither the Company (including the Board and any committee or subcommittee thereof) nor Privet shall issue any press release or public announcement regarding this Agreement or the matters contemplated hereby without the prior written consent of the other Party, other than a Form 8-K to be filed by the Company and an amendment to its Schedule 13D to be filed by Privet. During the Standstill Period, neither the Company nor Privet or the Privet Nominee shall make any public announcement or statement that is inconsistent with or contrary to the statements made in the Mutual Press Release, except as required by law or the rules of any stock exchange or with the prior written consent of the other Party, and otherwise in accordance with this Agreement.

7.Specific Performance.
Each of Privet, on the one hand, and the Company, on the other hand, acknowledges and agrees that irreparable injury to the other Party hereto would occur in the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached and that such injury would not be adequately compensable by the remedies available at law (including the payment of money damages). It is accordingly agreed that Privet, on the one hand, and the Company, on the other hand (the “Moving Party”), shall each be entitled to specific enforcement of, and injunctive relief to prevent any violation of, the terms hereof, and the other Party hereto will not take action, directly or indirectly, in opposition to the Moving Party seeking such relief on the grounds that any other remedy or relief is available at law or in equity. This Section 7 is not the exclusive remedy for any violation of this Agreement.

8.Expenses.
The Company shall reimburse Privet for its reasonable, documented out-of-pocket fees and expenses (including legal expenses) incurred through the date of this Agreement in connection with the negotiation and execution of this Agreement, provided, that such reimbursement shall not exceed $35,000 in the aggregate.

9.Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. The Parties agree to use their commercially reasonable best efforts to agree upon and substitute a valid and enforceable term, provision, covenant or restriction for any of such that is held invalid, void or enforceable by a court of competent jurisdiction.

10.Notices.
Any notices, consents, determinations, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending Party); (iii) upon confirmation of receipt, when sent by email (provided such confirmation is not automatically generated); or (iv) one (1) business day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the Party to receive the same. The addresses and facsimile numbers for such communications shall be:
If to the Company: Hardinge Inc.
1 Hardinge Drive
Elmira, NY 14902
Attention: Richard Simons
Telephone: (607) 378-4107
Facsimile: (607) 734-2353
Email: Rick.Simons@hardinge.com
With copies (which shall not constitute notice) to:Skadden, Arps, Slate, Meagher & Flom LLP 
4 Times Square
New York, NY 10036 
Attention: Richard J. Grossman
Telephone: (212) 735-2116
Facsimile: (917) 777-2116
Email: Richard.Grossman@skadden.com

		
	If to Privet: 
	Privet Fund Management LLC 

79 West Paces Ferry Rd 
Suite 200B
Atlanta, GA 30305
Attention: Benjamin Rosenzweig
Telephone: (404) 419-2670
Facsimile: (678) 999-5908

             With a copy (which shall not constitute notice) to: Bryan Cave LLP
One Atlantic Center, 14th Floor 
1201 W. Peachtree Street, NW 
Atlanta, GA 30309
Attention: Rick Miller
Telephone: (404) 572-6787
Facsimile: (404) 420-0787
Email: Rick.Miller@bryancave.com

11.Applicable Law.
This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York without reference to the conflict of laws principles thereof. Each of the Parties hereto irrevocably agrees that any legal action or proceeding 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 New York State Supreme Court and any state appellate court therefrom within the State of New York (or, if the New York State Supreme Court declines to accept jurisdiction over a particular matter, any federal court located in New York, New York). Each of the Parties hereto hereby irrevocably submits with regard to any such action or proceeding 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 in any court other than the aforesaid courts. Each of the Parties hereto hereby irrevocably waives, and agrees not to assert in any action or proceeding with respect to this Agreement, (i) any claim that it is not personally subject to the jurisdiction of the above-named courts for any reason, (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 permitted by applicable legal requirements, any claim that (A) the suit, action or proceeding in such court is brought in an inconvenient forum, (B) the venue of such suit, action or proceeding is improper or (C) this Agreement, or the subject matter hereof, may not be enforced in or by such courts.

12.Counterparts. 
This Agreement may be executed in two or more counterparts, each of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the Parties and delivered to the other Party (including by means of electronic delivery or facsimile).

13.Mutual Non-Disparagement. 
Subject to applicable law, each of the Parties covenants and agrees that, during the Standstill Period or if earlier, until such time as the other Party or any of its agents, subsidiaries, affiliates, successors, assigns, officers, key employees or directors shall have breached this Section, neither it nor any of its respective agents, subsidiaries, affiliates, successors, assigns, officers, key employees or directors, shall in any way publicly criticize, disparage, call into disrepute, or otherwise defame the other Parties or such other Parties’ subsidiaries, affiliates, successors, assigns, officers (including any current officer of a Party or a Parties’ subsidiaries who no longer serves in such capacity following the execution of this Agreement), directors (including any current director of a Party or a Parties’ subsidiaries who no longer serves in such capacity following the execution of this Agreement), employees, stockholders, agents, attorneys or representatives, or any of their businesses, products or services, in any manner that would reasonably be expected to damage the business or reputation of such other Parties, their businesses, products or services or their subsidiaries, affiliates, successors, assigns, officers (or former officers), directors (or former directors), employees, stockholders, agents, attorneys or representatives. This Section shall not limit the power of any director of the Company to act in accordance with applicable law; provided, however, that the Company shall be responsible for any such action by a director other than the Privet Nominee (and any Privet Replacement Director, if applicable) that would otherwise be in violation of this Section 13; and provided, further, that Privet shall be responsible for any such action by the Privet Nominee (and any Privet Replacement Director, if applicable) that would otherwise be in violation of this Section 13.

14.Confidentiality.
The Company hereby agrees that: (i) Benjamin Rosenzweig, if he wishes to do so, is permitted to and may provide confidential information to Privet and its controlled Affiliates provided that prior to providing any such confidential information, Benjamin Rosenzweig and the appropriate Privet entities execute a confidentiality agreement, in substantially the form attached hereto as Annex B (the “Confidentiality Agreement”), and (ii) the Company will execute and deliver the Confidentiality Agreement to Privet substantially contemporaneously with execution and delivery thereof by the other signatories thereto.

15.Entire Agreement; Amendment and Waiver; Successors and Assigns; Third Party Beneficiaries.
This Agreement (and the Annexes) contains the entire understanding of the Parties hereto with respect to its subject matter. There are no restrictions, agreements, promises, representations, warranties, covenants or undertakings between the Parties other than those expressly set forth herein. No modifications of this Agreement can be made except in writing signed by an authorized representative of each the Company and Privet. No failure on the part of any Party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such Party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies provided by law. The terms and conditions of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by the Parties hereto and their respective successors, heirs, executors, legal representatives, and permitted assigns. No Party shall assign this Agreement or any rights or obligations hereunder without, with respect to Privet, the prior written consent of the Company, and with respect to the Company, the prior written consent of Privet. This Agreement is solely for the benefit of the Parties hereto and is not enforceable by any other persons.
[The remainder of this page intentionally left blank]

IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized signatories of the Parties as of the date hereof.

HARDINGE INC.
By:    __________________            
Name: 
Title: 

[Signature Page to Agreement]

PRIVET FUND LP
By: Privet Fund Management LLC, its Managing Partner
By:  __________________                
Name: Ryan Levenson
Title: Sole Manager

PRIVET FUND MANAGEMENT LLC
By:  __________________                
Name: Ryan Levenson
Title: Sole Manager

[Signature Page to Agreement]Exhibit 10.1

 

TERMINATION AND RELEASE AGREEMENT

 

THIS TERMINATION AND RELEASE AGREEMENT (this “Agreement”), dated as of October 16, 2015 (the “Effective Date”), is entered into by and among Mead Park Capital Partners LLC, a Delaware limited liability company (“Mead Park”), Christopher Ricciardi, an individual, Stephanie Ricciardi, an individual, The Ricciardi Family Foundation, a New York charitable not-for-profit corporation (together with Stephanie Ricciardi and Christopher Ricciardi, “Ricciardi”), and Institutional Financial Markets, Inc., a Maryland corporation (the “Company”).

 

RECITALS:

 

WHEREAS, Mead Park is the owner of 487,291 shares (the “Mead Park Shares”) of the Company’s common stock, par value $0.001 per share (“Common Stock”);

 

WHEREAS, Ricciardi is the owner of 1,525,112 shares of Common Stock (the “Ricciardi Securities”);

 

WHEREAS, the Company and Mead Park are parties to that certain Securities Purchase Agreement, dated as of May 9, 2013, by and among the Company, Mead Park and, solely for purposes of Section 6.3 thereof, Mead Park Holdings LP (the “Mead Park Purchase Agreement”); and

 

WHEREAS, in connection with the termination of the Mead Park Purchase Agreement and all rights thereunder and the mutual release of claims set forth herein, (i) Mead Park wishes to transfer to the Company all of the Mead Park Shares, (ii) Ricciardi wishes to transfer to the Company 1,512,709 shares of the Ricciardi Securities (the “Ricciardi Shares”), (iii) the Company and Mead Park desire to terminate the Mead Park Purchase Agreement, and (iv) the Company has agreed to transfer to Christopher Ricciardi an aggregate amount of Four Million dollars ($4,000,000), in each case, subject to the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

 

1.                                      Definitions.  For purposes of this Agreement:

 

(a)                                 “Affiliate” shall mean, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with, such Person at any time during the period for which the determination of affiliation is being made.  For purposes of this definition, the terms “control,” “controlling,” “controlled” and words of similar import, when used in this context, mean, with respect to any Person, the possession, directly or indirectly, of the power to direct, or cause the direction of, management policies of such Person, whether through the ownership of voting securities, by contract or otherwise;

 

 

(b)                                 “Agreement Period” shall mean the period beginning on the Effective Date and ending on the date that is the first anniversary of the Effective Date;

 

(c)                                  “Articles of Incorporation” shall mean the Company’s Articles of Incorporation, as amended from time to time;

 

(d)                                 “Board of Directors” shall mean the Company’s Board of Directors;

 

(e)                                  “Bylaws” means the Company’s bylaws, as amended from time to time;

 

(f)                                   “Convertible IFMI LLC Units” shall mean units of membership interests in IFMI, LLC (other than any units of membership interest in IFMI, LLC owned by the Company) that are redeemable for shares of Common Stock or cash, at the option of the Company, pursuant to the IFMI LLC Agreement;

 

(g)                                  “Director” shall mean a member of the Board of Directors;

 

(h)                                 “Encumbrances” shall mean any lien, security interest, pledge, mortgage, easement, leasehold, assessment, tax, covenant, reservation, conditional sale, prior assignment, or any other encumbrance, claim, burden or charge of any nature whatsoever;

 

(i)                                     “IFMI, LLC” shall mean IFMI, LLC, a Delaware limited liability company and the Company’s majority owned subsidiary;

 

(j)                                    “IFMI LLC Agreement” shall mean the Amended and Restated Limited Liability Company Agreement of IFMI, LLC, dated as of December 16, 2009, by and among the Company and the Members (as defined therein) that are signatories thereto, as amended from time to time;

 

(k)                                 “Meeting” shall mean any meeting of the stockholders of the Company at which the election of Directors is to be voted upon, however called (and including any postponement or adjournment of any such meeting), and any written consent of the stockholders of the Company with respect to the election of Directors;

 

(l)                                     “Person” shall mean any individual, sole proprietorship, joint venture, partnership, company, corporation, association, cooperation, trust, estate, governmental authority, or any other entity of any nature whatsoever; and

 

(m)                             “Principal” of any Person, shall mean each principal, partner or member of such Person, any spouse or child of such principal, partner or member, and any trust for the benefit of such principal, partner or member or such principal’s, partner’s or member’s spouse or lineal descendants.

 

2.                                      Transfer and Delivery.  On the Effective Date:

 

(a)                                 Mead Park shall transfer and assign to the Company, and the Company shall accept from Mead Park, free and clear of all Encumbrances, all of Mead Park’s right, title and interest in and to the Mead Park Shares;

 

2

 

(b)                                 Ricciardi shall transfer and assign to the Company, and the Company shall accept from Ricciardi, free and clear of all Encumbrances, all of Ricciardi’s right, title and interest in and to the Ricciardi Shares;

 

(c)                                  Mead Park shall deliver to Computershare Inc., as transfer agent for the Company (“Computershare”), all appropriate stock powers or other instruments of transfer, duly executed in blank, necessary to transfer the Mead Park Shares from Mead Park to the Company, free and clear of all Encumbrances (the “Mead Park Transfer Documentation”);

 

(d)                                 Ricciardi shall deliver to Computershare all appropriate stock powers or other instruments of transfer, duly executed in blank, necessary to transfer the Ricciardi Shares from Ricciardi to the Company, free and clear of all Encumbrances (the “Ricciardi Transfer Documentation”); and

 

(e)                                  Upon (i) Mead Park’s delivery to Computershare of the Mead Park Transfer Documentation and (ii) Ricciardi’s delivery to Computershare of the Ricciardi Transfer Documentation, the Company shall deliver to Christopher Ricciardi, for the benefit of Ricciardi and Mead Park, an aggregate amount of Four Million dollars ($4,000,000) by wire transfer of immediately available funds to the account that has been designated in writing by Christopher Ricciardi to the Company.

 

3.                                      Representations and Warranties of Mead Park and Ricciardi. Mead Park and Ricciardi, jointly and severally, hereby represent and warrant to the Company as follows:

 

(a)                                 Mead Park is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware;

 

(b)                                 Each of Mead Park and Ricciardi has all requisite power and authority to execute and deliver this Agreement, to carry out its obligations hereunder, and to consummate the transactions contemplated hereby.  Mead Park has obtained all necessary limited liability company approvals for the execution and delivery of this Agreement, the performance of its obligations hereunder, and the consummation of the transactions contemplated hereby.  This Agreement has been duly executed and delivered by Mead Park and Ricciardi and (assuming due execution and delivery by the Company) constitutes Mead Park’s and Ricciardi’s legal, valid and binding obligations, enforceable against Mead Park and Ricciardi in accordance with its terms except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidity or similar laws relating to or affecting generally the enforcement of creditors’ rights and remedies or by other equitable principles of general application;

 

(c)                                  The Mead Park Shares consist of an aggregate of 487,291 shares of Common Stock, which are owned of record, free and clear of all Encumbrances, by Mead Park;

 

(d)                                 The Ricciardi Shares consist of (i) 1,351,721 shares of Common Stock beneficially and jointly owned, free and clear of all Encumbrances, by Christopher

 

3

 

Ricciardi and Stephanie Ricciardi; (ii) 47,565 shares of Common Stock owned of record, free and clear of all Encumbrances, by Christopher Ricciardi; (iii) 48,448 shares of Common Stock beneficially owned, free and clear of all Encumbrances, by Stephanie Ricciardi; and (iv) 64,975 shares of Common Stock beneficially owned, free and clear of all Encumbrances, by The Ricciardi Family Foundation;

 

(e)                                  The execution, delivery and performance by Mead Park and Ricciardi of this Agreement do not conflict with, violate or result in the breach of, or create any Encumbrance on the Mead Park Shares or the Ricciardi Shares pursuant to, any agreement, instrument, order, judgment, decree, law or governmental regulation to which Mead Park or Ricciardi is a party or is subject or by which the Mead Park Shares or the Ricciardi Shares are bound;

 

(f)                                   There are no actions, suits, claims, investigations or other legal proceedings pending or, to the knowledge of Mead Park and/or Ricciardi, threatened against or by Mead Park or Ricciardi that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement;

 

(g)                                  Each of Mead Park and Ricciardi, either alone or together with its representatives (if any), has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the transactions contemplated by this Agreement, and has so evaluated the merits and risks of such transactions; and

 

(h)                                 No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Mead Park or Ricciardi.

 

4.                                      Representation and Warranties of the Company. The Company hereby represents and warrants to Mead Park and Ricciardi as follows:

 

(a)                                 The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Maryland;

 

(b)                                 The Company has all requisite power and authority to execute and deliver this Agreement, to carry out its obligations hereunder, and to consummate the transactions contemplated hereby.  The Company has obtained all necessary corporate approvals for the execution and delivery of this Agreement, the performance of its obligations hereunder, and the consummation of the transactions contemplated hereby.  This Agreement has been duly executed and delivered by the Company and (assuming due execution and delivery by Mead Park and Ricciardi) constitutes the Company’s legal, valid and binding obligation, enforceable against the Company in accordance with its terms except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidity or similar laws relating to or affecting generally the enforcement of creditors’ rights and remedies or by other equitable principles of general application;

 

4

 

(c)                                  There are no actions, suits, claims, investigations or other legal proceedings pending or, to the knowledge of the Company, threatened against or by the Company that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement;

 

(d)                                 The Company, either alone or together with its representatives (if any), has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the transactions contemplated by this Agreement, and has so evaluated the merits and risks of such transactions; and

 

(e)                                  No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Company.

 

5.                                      Independent Analysis.  Each party hereto acknowledges that such party understands the transactions contemplated by this Agreement and that such party has had the opportunity to review this Agreement and the transactions contemplated hereby with such party’s own legal counsel, tax advisors and other advisors.  Each of party hereto is relying solely on such party’s own counsel and advisors and not on any statements or representations of the other party or of their respective representatives or agents for legal or other advice with respect to the transactions contemplated by this Agreement.

 

6.                                      Termination of the Mead Park Purchase Agreement.  The Company and Mead Park hereby terminate the Mead Park Purchase Agreement, effective as of the Effective Date, and as a result of such termination, effective as of such date, all further obligations of the parties under or pursuant to the Mead Park Purchase Agreement and under or pursuant to the Transaction Documents (as defined in the Mead Park Purchase Agreement) shall terminate without further liability of any such party to the other parties thereto, provided that each of (i) the convertible promissory note in the aggregate principal amount of One Million Four Hundred Sixty-One Thousand Eight Hundred Seventy-Three dollars ($1,461,873) currently held by Mead Park (the “Mead Park Note”); (ii) the convertible promissory notes in the aggregate principal amount of Four Million Three Hundred Eighty-Five Thousand Six Hundred Twenty-Eight dollars ($4,385,628) currently held by Edward E. Cohen (the “Cohen Notes”); and (iii) the Registration Rights Agreement, dated as of May 9, 2013, by and among the Company, Mead Park and Cohen Bros. Financial, LLC (the “Registration Rights Agreement”) shall each remain outstanding and effective and with no changes to the rights thereunder.

 

7.                                      Gross-Up Rights.

 

(a)                                 Sale of New Securities.  During the Agreement Period, if the Company or IFMI, LLC makes any public or nonpublic offering or sale of any equity (including Common Stock, or any preferred stock or restricted stock), or any securities, options or debt that is convertible or exchangeable into equity (including Convertible IFMI LLC Units) or that includes an equity component (such as an “equity” kicker) (including any hybrid security) (any such security, a “New Security”) other than (i) pursuant to the granting or exercise of employee stock options or other stock incentives pursuant to the

 

5

 

Company’s stock incentive plans approved by the Board of Directors (so long as the authorized awards under the Company’s stock incentive plans represent less than ten percent (10%) of the outstanding shares of the Company’s capital stock) or the issuance of capital stock pursuant to any employee stock purchase plan of the Company approved by the Board of Directors or similar plan where stock is being issued or offered to a trust, other entity or otherwise, for the benefit of any employees, officers or directors of the Company, in each case, in the ordinary course of providing incentive compensation, (ii) issuances of capital stock as full or partial consideration for a merger, acquisition, joint venture, strategic alliance, license agreement or other similar nonfinancing transaction, (iii) issuances of shares of Common Stock upon the conversion or exercise of any convertible preferred stock or notes outstanding as of the Effective Date, in each case, in accordance with the terms thereof as of the Effective Date, or (iv) issuances of Convertible IFMI LLC Units pursuant to Section 6.10(x) or (y) of the IFMI LLC Agreement, then Christopher Ricciardi shall be afforded the opportunity to acquire from the Company and/or IFMI, LLC for the same price (net of any underwriting discounts or sales commissions) and on the same terms as New Securities are proposed to be offered to others, up to the amount of New Securities in the aggregate required to enable Christopher Ricciardi to maintain his proportionate equivalent interest in the Company immediately prior to any such issuance of New Securities (counting for such purposes all Convertible IFMI LLC Units as outstanding shares of the Common Stock).

 

(b)                                 Notice.  In the event the Company and/or IFMI, LLC proposes to offer or sell New Securities that are subject to Christopher Ricciardi’s rights under Section 7(a), the Company and/or IFMI, LLC (as applicable) shall give Christopher Ricciardi written notice of its intention, describing the price (or range of prices), anticipated amount of securities, timing and other terms upon which the Company and/or IFMI, LLC proposes to offer the same (including, in the case of a registered public offering and to the extent possible, a copy of the prospectus included in the registration statement filed with respect to such offering), no later than five (5) business days, as the case may be, after the initial filing of a registration statement with the U.S. Securities and Exchange Commission (the “SEC”) with respect to an underwritten public offering, after the commencement of marketing with respect to a Rule 144A offering or after the Company and/or IFMI, LLC proposes to pursue any other offering.  Christopher Ricciardi shall then have ten (10) business days from the date of receipt of such a notice to notify the Company and/or IFMI, LLC (as applicable) in writing that it intends to exercise its rights provided in this Section 7 and as to the amount of New Securities which Christopher Ricciardi desires to purchase, up to the maximum amount calculated pursuant to Section 7(a).  Such notice shall constitute a nonbinding indication of interest of Christopher Ricciardi to purchase the amount of New Securities so specified at the price and other terms set forth in the Company’s and/or IFMI, LLC’s notice to it. The failure of Christopher Ricciardi to respond within such ten (10) business day period shall be deemed to be a waiver of Christopher Ricciardi’s rights under this Section 7 only with respect to the offering described in the applicable notice. The Company shall cause IFMI, LLC to comply with this Section 7.

 

6

 

8.                                      Christopher Ricciardi Board Nomination Right.  During the Agreement Period, if there shall occur any Meeting, then:

 

(a)                                 The Board of Directors shall nominate Christopher Ricciardi to stand for election to the Board of Directors at such Meeting; provided, however, that Christopher Ricciardi shall have satisfied all of the requirements applicable to Directors under applicable law, the Articles of Incorporation, the Bylaws and any customary director qualification standards in effect as of the Effective Date or adopted by the Board of Directors thereafter; and

 

(b)                                 The Board of Directors shall (i) recommend to the Company’s stockholders the election of Christopher Ricciardi at such Meeting, and (ii) solicit proxies for Christopher Ricciardi in connection with such Meeting to the same extent as it does for any of its other nominees to the Board of Directors.

 

9.                                      Standstill.  During the Agreement Period, unless approved in advance in writing by the Board of Directors, each of Mead Park and Ricciardi shall not, and shall cause each of its Affiliates to not, directly or indirectly:

 

(a)                                 except as set forth in Section 7, acquire (or propose or agree to acquire), of record or beneficially, by purchase or otherwise, any loans, debt securities, equity securities or assets of the Company or any of its subsidiaries, or rights or options to acquire interests in or any derivative securities with respect to any of the Company’s loans, debt securities, equity securities or assets; provided, however, that in addition to any shares purchased pursuant to Section 7, the Company agrees that Ricciardi may purchase up to an aggregate of Two Hundred Fifty Thousand (250,000) shares of Common Stock at a purchase price per share of no less than $2.00 from current or former Principals of Mead Park during the Agreement Period without violating this Section 9(a);

 

(b)                                 make any statement or proposal (whether public or private) to any of the Company’s stockholders (other than in a confidential manner to any of the Company’s or its subsidiaries’ officers, directors or managers who are also stockholders of the Company) regarding, or make any public announcement, proposal or offer (including any “solicitation” of “proxies” as such terms are defined or used in Regulation 14A of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) with respect to, or otherwise solicit, seek or offer to effect (including, for the avoidance of doubt, indirectly by means of communication with the press or media): (i) any business combination, merger, tender offer, exchange offer or similar transaction involving the Company or any of its subsidiaries, (ii) any restructuring, recapitalization, liquidation or similar transaction involving the Company or any of its subsidiaries, (iii) any change to the Articles of Incorporation, the Bylaws or any articles of incorporation, bylaws or other organizational or governing documents of any of the Company’s subsidiaries, (iv) any change to the Company’s or its subsidiaries’ business activities or corporate structure, (v) any acquisition of any of the Company’s loans, debt securities, equity securities or assets, or rights or options to acquire interests in any of the Company’s loans, debt securities, equity securities or assets, (vi) except as set forth in Section 8, any representation on the Board of Directors or otherwise seek to control or influence the management, Board of

 

7

 

Directors or policies of the Company, (vii) any waiver, termination or amendment to the provisions of this Agreement, or (viii) any proposal, arrangement or other statement that is inconsistent with the terms of this Agreement, including this Section 9;

 

(c)                                  instigate, encourage or assist any third party (including, but not limited to, forming a “group” with any such third party) to do or enter into any discussions or agreements with any third party with respect to any of the actions set forth in this Section 9; or

 

(d)                                 take any action which would reasonably be expected to require the Company or any of its affiliates to make a public announcement regarding any of the actions or matters set forth in this Section 9.

 

10.                               Mutual Release.

 

(a)                                 In consideration of the covenants, agreements and undertakings of the parties hereunder, effective upon the Effective Date, each of Mead Park and Ricciardi, on behalf of itself, its predecessors, successors, direct and indirect parent companies, direct and indirect subsidiary companies, Affiliates and assigns, and its and their past, present and future officers, directors, stockholders, interest holders, Principals, attorneys, agents, employees, managers, representatives, assigns and successors in interest, and all Persons acting by, through, under or in concert with them, and each of them (each such party, in such capacity, a “Ricciardi Releasor”), hereby release and discharge the Company, together with its predecessors, successors, direct and indirect parent companies, direct and indirect subsidiary companies, Affiliates and assigns and its and their past, present and future officers, directors, stockholders, interest holders, Principals, attorneys, agents, employees, managers, representatives, assigns and successors in interest, and all Persons acting by, through, under or in concert with them, and each of them (each such party, in such capacity, a “Company Releasee”), from all known and unknown charges, complaints, claims (including, without limitation, any derivative or class action claims), grievances, liabilities, obligations, promises, agreements, controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, debts, penalties, fees, wages, medical costs, pain and suffering, mental anguish, emotional distress, expenses (including attorneys’ fees and costs actually incurred) and punitive damages, of any nature whatsoever, known or unknown, which either such Ricciardi Releasor has, or may have had, against any Company Releasee, whether or not apparent or yet to be discovered, or which may hereafter develop, for any acts or omissions related to or arising from (i) the Mead Park Purchase Agreement or (ii) any other actions or omissions of a Company Releasee prior to the date hereof and relating to the Company.  Each Ricciardi Releasor further agrees that, following the Effective Date, it shall not initiate or participate in any lawsuit or other legal proceeding (including but not limited to any derivative claim or suit or any class action), or to instigate, encourage or assist any third party (including but not limited to forming a “group” with any such third party) or to enter into any discussions or agreements with any third party with respect to any lawsuit or other legal proceeding (including any derivative claim or suit or any class action), related to or arising from (i) the Mead Park Purchase Agreement or (ii) any other actions or omissions of a Company Releasee prior to the date hereof and relating to the Company.

 

8

 

(b)                                 In consideration of the covenants, agreements and undertakings of the parties hereunder, effective upon the Effective Date, the Company, on behalf of itself, its predecessors, successors, direct and indirect parent companies, direct and indirect subsidiary companies, Affiliates and assigns, and its and their past, present and future officers, directors, stockholders, interest holders, Principals, attorneys, agents, employees, managers, representatives, assigns and successors in interest, and all Persons acting by, through, under or in concert with them, and each of them (each such party, in such capacity, a “Company Releasor”), hereby release and discharge each of Mead Park and Ricciardi, together with its predecessors, successors, direct and indirect parent companies, direct and indirect subsidiary companies, Affiliates and assigns and its and their past, present and future officers, directors, stockholders, interest holders, Principals, attorneys, agents, employees, managers, representatives, assigns and successors in interest, and all Persons acting by, through, under or in concert with them, and each of them (each such party, in such capacity, a “Ricciardi Releasee”), from all known and unknown charges, complaints, claims (including, without limitation, any derivative or class action claims), grievances, liabilities, obligations, promises, agreements, controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, debts, penalties, fees, wages, medical costs, pain and suffering, mental anguish, emotional distress, expenses (including attorneys’ fees and costs actually incurred) and punitive damages, of any nature whatsoever, known or unknown, which either such Company Releasor has, or may have had, against any Ricciardi Releasee, whether or not apparent or yet to be discovered, or which may hereafter develop, for any acts or omissions related to or arising from (i) the Mead Park Purchase Agreement or (ii) any other actions or omissions of a Ricciardi Releasee prior to the date hereof and relating to the Company.

 

(c)                                  This Agreement resolves any claim for relief that is, or could have been alleged, no matter how characterized, including, without limitation, compensatory damages, damages for breach of contract, bad faith damages, reliance damages, liquidated damages, damages for humiliation and embarrassment, punitive damages, costs and attorneys’ fees related to or arising from any of the matters set forth in Section 10(a) and Section 10(b).

 

11.                               Disclosure; Public Statements and Announcements.

 

(a)                                 On or before 5:30 p.m., New York City time, on the second (2nd) business day after the date of this Agreement, the Company shall file a Current Report on Form 8-K describing all the material terms of the transactions contemplated by this Agreement in the form required by the Exchange Act (the “8-K Filing”).  Neither the Company, Mead Park, Ricciardi or any Affiliates of the foregoing shall issue any press releases or make any other public statements with respect to the transactions contemplated by this Agreement without the express written consent of all of the other parties to this Agreement (such consent not to be unreasonably withheld or delayed); provided, however, that (i) the Company shall be entitled, without the prior approval of Mead Park or Ricciardi, to file the 8-K Filing or other public disclosure as is required by applicable law and regulations, subject to providing Mead Park and Ricciardi with reasonable

 

9

 

opportunity to comment thereon and considering any such comments in good faith and (ii) Mead Park and Ricciardi shall be entitled, without the prior approval of the Company, to make any Section 16 filings or other public disclosure as is required by applicable law and regulations, subject to providing the Company with reasonable opportunity to comment thereon and considering any such comments in good faith.

 

(b)                                 The Company agrees that, during the Agreement Period it shall not, and shall cause each of its Affiliates, not to, directly or indirectly, in any manner, alone or in concert with others, make or cause to be made, or in any way encourage any other person to make or cause to be made, any public statement or announcement, including in any document or report filed with or furnished to the SEC or through the press, media, analysts or other persons, that constitutes an ad hominem attack on, or otherwise disparages, defames or slanders Mead Park, Ricciardi or any of their respective Affiliates or any of their respective current or former Principals.

 

(c)                                  Mead Park and Ricciardi agree that, during the Agreement Period it shall not, and shall cause each of its Affiliates, not to, directly or indirectly, in any manner, alone or in concert with others, make or cause to be made, or in any way encourage any other person to make or cause to be made, any public statement or announcement, including in any document or report filed with or furnished to the SEC or through the press, media, analysts or other persons, that constitutes an ad hominem attack on, or otherwise disparages, defames or slanders the Company, any of its Directors, any past or present employee including members of senior management or any of its Affiliates.

 

12.                               Survival.  All representations and warranties contained herein shall survive the execution and delivery of this Agreement and the Effective Date.

 

13.                               Further Assurances.  Following the Effective Date, each of the Company, Ricciardi and Mead Park shall execute and deliver, or shall cause to be executed and delivered, such additional documents, instruments, conveyances and assurances, and take or cause to be taken, such further actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement.

 

14.                               Expenses.  All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses.

 

15.                               Notices.  All notices, requests, consents, claims, demands, waivers and other communications hereunder (each, a “Notice”) shall be in writing and addressed to the parties at the addresses set forth on the books and records of the Company (or to such other address that may be designated by the receiving party from time to time in accordance with this section).  All Notices shall be delivered by personal delivery, nationally recognized overnight courier (with all fees pre-paid), facsimile or e-mail of a .PDF document (with confirmation of transmission) or certified or registered mail (in each case, return receipt requested, postage prepaid).  Except as otherwise provided in this Agreement, a Notice is effective only (a) upon receipt by the receiving party, and (b) if the party giving the Notice has complied with the requirements of this Section 15.

 

10

 

16.                               Entire Agreement.  This Agreement, the Mead Park Note, the Cohen Notes and the Registration Rights Agreement collectively constitute the sole and entire agreement of the parties hereto with respect to the subject matter hereof and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter.

 

17.                               Successor and Assigns.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

 

18.                               Amendment and Modification; Waiver.  This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each party hereto.  No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving.  No failure to exercise, or delay in exercising, any rights, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

19.                               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.  If any court determines that any term or other provision in this Agreement is invalid, illegal or unenforceable, it is the parties’ intention that such court shall have the power to modify this Agreement so as to effect the original intent of the parties as closely as possible to the maximum extent permitted by applicable law.

 

20.                               Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION. THE PARTIES FURTHER AGREE THAT ANY ACTION BETWEEN THEM SHALL BE HEARD IN NEW YORK CITY, NEW YORK, AND EXPRESSLY CONSENT TO THE JURISDICTION AND VENUE OF THE STATE AND FEDERAL COURTS SITTING IN NEW YORK CITY, NEW YORK, FOR THE ADJUDICATION OF ANY CIVIL ACTION ASSERTED PURSUANT TO THIS AGREEMENT.  EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT AND ANY OF THE AGREEMENTS DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

11

 

21.                               Interpretation.  The words “this Agreement,” “herein,” “hereby,” “hereunder” and “hereof,” and words of similar import, refer to this Agreement as a whole and not to any particular section, subsection or other subdivision unless expressly limited.  All references to “$” shall be deemed references to United States Dollars.  Titles appearing at the beginning of any section, subsection or other subdivision contained in this Agreement are for convenience only, do not constitute any part of this Agreement, and shall be disregarded in construing the language hereof.  If an ambiguity, question of intent or question of interpretation arises, this Agreement must be construed as if drafted jointly by the parties hereto, and there must not be any presumption, inference or conclusion drawn against either party by virtue of the fact that its representatives have authored this Agreement or any of its terms.

 

22.                               Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement.  A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

12

 

IN WITNESS WHEREOF, the parties hereto have executed this Termination and Release Agreement on the date first written above.

 

	
 
    	
RICCIARDI:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Christopher Ricciardi
    
	
 
    	
Name:
    	
Christopher Ricciardi
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephanie Ricciardi
    
	
 
    	
Name:
    	
Stephanie Ricciardi
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
The Ricciardi Family Foundation
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter F. Ricciardi
    
	
 
    	
Name:
    	
Peter F. Ricciardi
    
	
 
    	
Title:
    	
Executive Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
MEAD PARK:
    
	
 
    	
 
    
	
 
    	
Mead Park Capital Partners LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Christopher Ricciardi
    
	
 
    	
Name:
    	
Christopher Ricciardi
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
Institutional Financial Markets, Inc.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joseph W. Pooler, Jr.
    
	
 
    	
Name:
    	
Joseph W. Pooler, Jr.
    
	
 
    	
Title:
    	
Executive   Vice President, Chief Financial Officer and Treasurer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00250-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00250-of-00352.parquet"}]]