Document:

Exhibit 10.8

 

 

JOINDER AGREEMENT

 

This Joinder Agreement (the “Agreement”),
dated as of August 9, 2016, is delivered pursuant to the Non-Disclosure Agreement (the “Confidentiality Agreement”),
dated August 9, 2016, by and between Perceptron, Inc. (the “Company”), Harbert Discovery Fund LP, Harbert Discovery
Fund GP, LLC, Harbert Fund Advisors Inc., Harbert Management Corporation and the undersigned. Capitalized terms not otherwise defined
herein have the meaning set forth in the Standstill Agreement (the “Standstill Agreement”), dated August 9, 2016, by
and between the Company, Harbert Discovery Fund LP, Harbert Discovery Fund GP, LLC, Harbert Fund Advisors, Inc., and Harbert Management
Corporation, a copy of which is attached to this Agreement as Exhibit A.

 

The undersigned wishes to be elected as a Director.
As a condition precedent to being elected as Director, the undersigned is required to become a party to the Standstill Agreement.

 

By executing and delivering this Agreement,
the undersigned hereby becomes a party to the Standstill Agreement and shall be fully bound by, and subject to, all of the covenants,
terms and conditions of the Standstill Agreement as though an original party to such agreement and shall be deemed a Holders Director
for all purposes of such agreement.

 

 

 

	 	/s/ John F. Bryant	 
	 	John F. Bryant	 

 

 

 

 

 

 

 

     

    

    

Exhibit A

 

Standstill Agreement

 

See attached.

 

 

 

 

 

 

 

 

 

     

    

    

EXECUTION COPY

 

STANDSTILL AGREEMENT

 

THIS STANDSTILL AGREEMENT (“Agreement”),
dated the 9th day of August, 2016, is made by and between Perceptron, Inc., a Michigan corporation (“Perceptron”),
Harbert Discovery Fund LP, Harbert Discovery Fund GP, LLC, Harbert Fund Advisors Inc. and Harbert Management Corporation (collectively,
the “Holders”).

 

WHEREAS, Perceptron and Holders have agreed
that it is in their mutual interests to enter into this Agreement as hereinafter described.

 

NOW, THEREFORE, in consideration of the premises
and the representations, warranties, and agreements contained herein, and other good and valuable consideration, the parties hereto
mutually agree as follows:

 

1.Representations and Warranties of Holders. Holders,
on behalf of themselves and their affiliates, hereby represent and warrant to Perceptron as follows:

 

a.Holders have the power and authority to execute, deliver
and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby.

 

b.This Agreement has been duly and validly authorized, executed
and delivered by Holders, constitutes the valid and binding obligation and agreement of Holders and is enforceable against Holders
in accordance with its terms.

 

c.Immediately following the termination of the current section
13 “group” relationship with Moab Partners, L.P., Moab Capital Partners, LLC, and Michael M. Rothenberg, Harbert Discovery
Fund LP, Harbert Discovery Fund GP, LLC, Harbert Fund Advisors, Inc., Harbert Management Corporation, Jack Bryant, Kenan Lucas
and Raymond Harbert will have beneficial ownership of 504,100 shares of common stock of Perceptron. No other affiliate or associate
of Holders beneficially owns any shares or rights to acquire shares of common stock or other voting securities of Perceptron. For
purposes of this Agreement, “affiliate” and “associate” have the meanings set forth in the Securities Exchange
Act of 1934, as amended (the “Exchange Act”).

 

d.Other than as relates to Jack Bryant’s position
with Harbert Discovery Fund GP, LLC, the General Partner of Harbert Discovery Fund, LP, and which compensatory or other payment
arrangement was not materially increased in connection with the Holders’ proposal to add Jack Bryant as a Holders Director,
there are no arrangements, agreements or understandings (whether compensatory or otherwise) between Holders and the Holders Directors
(as defined in Section 5(a)); or other than the current section 13 group relationship, there are no agreements or understandings
(whether compensatory or otherwise) between the Holders and Moab Partners, L.P. and Moab Capital Partners, LLC.

 

e. No event has occurred with
respect to Holders Directors that would require disclosure in a Perceptron report or other document filed pursuant to the Securities
Act of 1933, as amended, or the Exchange Act, pursuant to Item 401(f) of Regulation S-K.

 

     

    

    

f.The Holders Directors are “independent” as
defined in the applicable NASDAQ Marketplace Rule.

 

2.Representations and Warranties of Perceptron. Perceptron
hereby represents and warrants to Holders, as follows:

 

a.Perceptron has the power and authority to execute, deliver
and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby.

 

b.This Agreement has been duly and validly authorized, executed
and delivered by Perceptron, constitutes the valid and binding obligation and agreement of Perceptron and is enforceable against
Perceptron in accordance with its terms.

 

3.Holders’ Prohibited Conduct. During the Covered
Period (as defined in Section 9(a)), Holders will not, and will cause its affiliates and associates not to, directly or indirectly,

 

a.(i) effect, seek, offer or propose (whether publicly or
otherwise and whether or not subject to conditions) to effect or seek or become a “participant” in (as such term is
used in Regulation 14A of the Exchange Act), or (ii) announce any intention to effect, seek, or offer or propose (whether publicly
or otherwise and whether or not subject to conditions) to effect or seek or become a participant in or (iii) in any way knowingly
assist, facilitate or encourage any other person to effect, seek, offer or propose (whether publicly or otherwise and whether or
not subject to conditions) to effect or seek or announce any intention to effect, seek, offer or propose (whether publicly or otherwise
and whether or not subject to conditions) to effect or seek or become a participant in, any “solicitation” of “proxies”
to vote (as such terms are used in Regulation 14A of the Exchange Act) or consents for shareholder action in lieu of a meeting
(whether or not related to the election or removal of directors) with respect to any common stock or other voting securities of
Perceptron or any of its subsidiaries, or the initiation, proposal, encouragement or solicitation of shareholders of Perceptron
for the approval of any shareholder proposals, whether pursuant to Rule 14a-8 of the Exchange Act or otherwise, with respect to
Perceptron, or the solicitation, advisement or influence of any person with respect to the voting of any common stock or other
voting securities of Perceptron;

 

b.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 Securities and Exchange Commission (the “SEC”) or through the press, media, analysts or other persons,
that disparages, defames or slanders Perceptron or its affiliates or any of their respective current or former officers, directors,
or employees;

 

c.initiate any litigation against Perceptron or any members
of its Board of Directors (the “Directors”), officers, employees or agents, except to enforce the terms of this Agreement
or alleging fraud;

 

d.acquire, offer or propose to acquire, or agree to acquire
(except, in any case, by way of stock dividends or other distributions or offerings made available to holders of common stock or
other voting securities of Perceptron generally), directly or indirectly, or retain ownership of any common stock or other voting
securities of Perceptron, if when taken together with the common stock or other voting securities of Perceptron beneficially owned
by all of the Holders and their affiliates and associates, in the aggregate, would constitute more than 9.9% of the then outstanding
common stock or other voting securities of Perceptron; provided that “beneficial ownership” shall have the meaning
ascribed thereto under Section 13(d) of the Exchange Act; this 9.9% threshold refers only to the voting securities beneficially
owned by the Holders and their affiliates and associates in the aggregate and does not include any holdings of Moab Partners, LP.
Moab Capital Partners, LLC or Michael Rothenberg;

 

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e.make any proposal, offer or public announcement involving,
or propose to enter into, or assist or encourage any other person with respect to, directly or indirectly, any merger, consolidation,
business combination, tender or exchange offer, sale or purchase of assets, sale or purchase of securities, dissolution, liquidation,
restructuring, recapitalization or similar transactions of or involving Perceptron or take any action which would reasonably be
expected to require Perceptron to make a public announcement regarding any of the foregoing actions; provided that nothing herein
shall limit Holders’ ability to discuss with the Directors through non-public communications (which may, but need not, be
at a meeting of the Perceptron’s Board of Directors (the “Board”)) or to propose as a Director through non-public
communications (which may, but need not, be at a meeting of the Board) that the Board consider any of the foregoing types of transactions,
and to vote as a Director at a meeting of the Board upon any such transaction. Nothing herein shall restrict the ability of the
Holders to make any filings under the Exchange Act or any other securities laws that are legally required to be made, as determined
based on the advice of counsel (which advice need not be a formal opinion of counsel) that is mutually acceptable to Perceptron
and the Holders, as a result of Jack Bryant proposing as a Director through non-public communications that the Board consider any
of the foregoing types of transactions or vote at a meeting of the Board upon any such transaction. Holders shall provide Perceptron
and its counsel with a copy of such filing within a reasonable period (and, in any event, at least one business day) in advance
of filing such filing with the SEC in order to provide Perceptron with a reasonable opportunity to review such materials. Holders
and Perceptron shall mutually agree on the disclosure in such filing relating to such actions by Jack Bryant. Notwithstanding the
foregoing, in the event Holders and Perceptron do not agree on the wording of the filing prior to the due date of the filing, nothing
herein shall prevent Holders from timely filing such filing without incorporating Perceptron’s comments, if they have, in
good faith, taken reasonable efforts to incorporate Perceptron’s comments into the applicable materials;

 

f.Other than the current section 13 “group”
that exists between the Holders, Moab Capital Partners, LLC, Moab Partners, LP, and Michael M. Rothenberg, which will be terminated
promptly following the execution of this Agreement and not reformed during the term of this Agreement, form, join or in any way
participate in any “group” (within the meaning of Section 13(d)(3) of the Exchange Act) with respect to common stock
or other voting securities of Perceptron;

 

g.deposit any common stock
or other voting securities of Perceptron in any voting trust or subject any common stock or other voting securities of Perceptron
to any arrangement or agreement with respect to the voting of any common stock or other voting securities of Perceptron, including,
without limitation, lend any common stock or other voting securities of Perceptron to an person or entity for the purpose of allowing
such person or entity to vote such common stock or other voting securities of Perceptron in connection with any shareholder vote
or consent;

 

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h. otherwise act, alone or in concert with others, to control
or seek to control or influence or seek to influence the shareholders, management, the Board or policies of Perceptron, other than
through non-public communications with the Directors of Perceptron (which may, but need not, be at a meeting of the Board); provided,
that nothing herein shall limit the Holders Directors from acting in their capacity as Directors of Perceptron in accordance with
their fiduciary duties at any meeting of the Board;

 

i.alone or in concert with others, (i) call or seek to call
any meeting of shareholders, including by written consent, or provide to any third party a proxy, consent or requisition to call
any meeting of shareholders, (ii) seek to have the shareholders authorize or take corporate action by written consent without a
meeting, solicit any consents from shareholders or grant any consent or proxy for a consent to any third party seeking to have
the shareholders authorize or take corporate action by written consent without a meeting, (iii) seek representation on the Board
or its subsidiaries, except as permitted herein, (iv) seek, or vote for or support another party seeking the removal of any member
of the Perceptron Board or any of its subsidiaries except as permitted herein, (v) conduct or seek to conduct a referendum of shareholders,
(vi) make a request for a shareholder list or (vii) make a request for other books and records of Perceptron, except that the Holders
Directors may request such other book and records in their capacity as, and as required to fulfill their fiduciary duties as, directors
of Perceptron.

 

j.take any action in support of or make any proposal
or request that constitutes: (i) advising, controlling, changing or influencing the Board or management of Perceptron, including
any plans or proposals to change the number or term of directors, the removal of any Directors, or to fill any vacancies on the
Board; (ii) any material change in the capitalization, stock repurchase programs and practices or dividend policy of Perceptron;
(iii) any other material change in Perceptron’s management, business or corporate structure; (iv) seeking to have
Perceptron waive or make amendments or modifications to Perceptron’s Articles of Incorporation or Bylaws, or other actions
that may impede or facilitate the acquisition of control of Perceptron by any person; (v) causing a class of securities of
Perceptron to be delisted from, or to cease to be authorized to be quoted on, any securities exchange; or (vi) causing a class
of securities of Perceptron to become eligible for termination of registration pursuant to Section 12(g)(4) of the Exchange
Act; provided that nothing herein shall limit Holders’ ability to discuss with the Directors through non-public communications
(which may, but need not, be at a meeting of the Board) or to propose as a Director through non-public communications (which may,
but need not, be at a meeting of the Board) that the Board consider any of the foregoing types of transactions, and to vote as
a Director at a meeting of the Board upon any such matter;

 

k. engage in (i) any short sale with respect to common
stock or other voting securities of Perceptron or (ii) any purchase, sale or grant of any option, warrant, convertible security,
stock appreciation right, or other similar right (including, without limitation, any hedging, put or call option or “swap”
transaction) with respect to common stock or other voting securities of Perceptron to the extent that it would cause the Holders
to beneficially own less than five percent of the outstanding shares of common stock or other voting securities of Perceptron,
treating any common stock or other voting securities of Perceptron subject to one or more of the foregoing arrangements not to
be beneficially owned by the Holders;

 

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l. make any proposal, or take, cause or seek to cause others
to take, directly or indirectly, any action inconsistent with any of the foregoing regarding any of the foregoing; or

 

m. publicly make or disclose any request to amend, waive
or terminate any provision of this Agreement.

 

4. Holders’ Affirmative Conduct.

 

a.At all meetings of shareholders during the Covered Period,
or in connection with any consent for shareholder action in lieu of a meeting, Holders shall cause all shares of common stock or
other voting securities of Perceptron beneficially owned, directly or indirectly by them, or by any of their affiliates or associates,
to be present for quorum purposes and to be voted for each of Perceptron’s nominees for election to the Board, in favor of
Perceptron’s “say-on-pay” proposal, for the ratification of the appointment of Perceptron’s independent
auditors and, in other matters, in accordance with the recommendation of the Board. If requested by Perceptron, Holders shall consider
but shall not be required to publicly support the election of each of Perceptron’s nominees for election to the Board.

 

b. Holders shall promptly file an amendment to their current
Schedules 13D reporting entry into this Agreement, amending applicable items to conform to their obligations hereunder and appending
or incorporating by reference this Agreement as an exhibit thereto. Holders shall provide Perceptron and its counsel with a copy
of such amendment within a reasonable period (and, in any event, at least one business day) in advance of filing such amendment
with the SEC in order to provide Perceptron with a reasonable opportunity to review and comment on such materials. Holders shall,
in good faith, take into consideration the comments received from Perceptron and its counsel on such amendment and shall take reasonable
efforts to incorporate such comments into the applicable materials. Notwithstanding the foregoing, in the event Holders do not
receive comments from Perceptron and its counsel with sufficient time to consider and/or incorporate such comments prior to the
due date of such filing, nothing herein shall prevent Holders from timely filing such amendment without incorporating Perceptron’s
comments.

 

c.This Agreement shall constitute a voting agreement under
Section 461 of the Michigan Business Corporation Act.

 

d.During the Covered Period, Holders constitute and appoint
W. Richard Marz and David Watza, or either of them, each with the power of substitution, and hereby authorizes them to represent
and vote the shares of common stock or other voting securities of Perceptron beneficially owned by Holders, at any meeting of the
shareholders of Perceptron and to give consent with respect to any action proposed to be taken by consent in lieu of a shareholders
meeting, as provided for under this Agreement, but only to the extent that the Holders fail to vote such shares or voting securities
as required by this Agreement. Holders hereby ratify all that the proxies named herein or substitutes may lawfully do or cause
to be done by virtue hereof and revokes all former proxies. Holders hereby affirm that the irrevocable proxy set forth in this
Section 4 is coupled with an interest. The proxy may not be revoked during the Covered Period. Holders shall cause their affiliates
and associates who, to the actual knowledge of Holders as of the date hereof (without any obligation to inquire or conduct any
investigation), beneficially own shares of common stock or other voting securities of Perceptron to take all actions under this
Section 4(d) as though they were Holders. For the avoidance of doubt, the proxy described in this Section 4(d) shall be revoked
automatically upon the termination of this Agreement and may be revoked by the Holders after the expiration of the Covered Period.

 

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5.Directorships.

 

a. Perceptron agrees that subject to the full execution
of this Agreement, (i) upon Perceptron’s receipt of a written reaffirmation from William Taylor, James Ratigan and Jack Bryant
(each a “Holders Director” and collectively the “Holders Directors”) to serve as a Director, each of the
Holders Directors will be immediately appointed to the Board to fill vacancies left by the resignations of Kenneth R. Dabrowski
and Philip J. DeCocco, and the Board will be expanded to seven members; (ii) Jack Bryant will immediately be added as a member
of the Nominating and Corporate Governance Committee; (iii) William Taylor will be immediately added as a member of the Management
Development Committee; (iv) James Ratigan will be immediately added as a member of the Audit Committee; (v) Jack Bryant, William
Taylor, and James Ratigan may also serve on additional existing or newly created Committees of the Board; (vi) the Board size will
be set at seven members and maintained at that Board size; and (vii) upon the appointment of a new President and Chief Executive
Officer, the new President and Chief Executive Officer will be appointed to the Board to fill a vacancy left by the resignation
of either Robert S. Oswald or Terryll R. Smith, who will resign at that time to facilitate such appointment.

 

b. The Nominating and Corporate Governance Committee of
the Board and the Board will nominate, recommend and support each of the Holders Directors for election at each Annual Meeting
of the Shareholders of Perceptron during the Covered Period. Perceptron agrees to solicit proxies for the Holders Directors during
the Covered Period pursuant to this Section 5(b) and include the Holders Directors in its slate of nominees (the “Company
Slate”) for election as directors of Perceptron during the Covered Period in the same manner as it does for all the other
incumbent members of the Company Slate.

 

c. As a condition to the Holders Directors’ nomination
for election to the Board during the Covered Period, Holders and the Holders Directors agree to provide to Perceptron the information
required to be disclosed for directors, candidates for directors and their affiliates and representatives in a proxy statement
or other filings under applicable law or stock exchange rules or listing standards, information in connection with assessing eligibility,
independence and other criteria applicable to directors, and satisfying other compliance requirements and legal obligations in
the same manner as any other director, a fully completed copy of Perceptron’s standard director questionnaire and such other
information as reasonably requested by Perceptron from time to time with respect to Holders and the Holders Directors.

 

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d.Each of the Holders Directors agrees that, at all times
while serving as a member of the Board, he will (i) meet all director independence standards of Perceptron, The NASDAQ Stock
Market and the SEC and applicable provisions of the Exchange Act, and the rules and regulations promulgated thereunder, and (ii) be
qualified to serve as a director under the Michigan Business Corporation Act.

 

e. At all times while serving as a Director, each of the
Holders Directors will receive the same benefits of directors’ and officers’ insurance and any indemnity and exculpation
arrangements available generally to the other non-executive Board members and the same compensation and other benefits for his
service as a director as the compensation and other benefits received by the other non-executive Board members for service as a
director.

 

f. Holders shall cause the Holders Directors to comply with
all corporate and Board policies and principles of Perceptron in force from time to time and applicable to Directors of Perceptron
generally, and to provide Perceptron with signed agreements from the Holders Directors to that effect.

 

g. Other than any incentive, compensation or other payment
Jack Bryant may receive in his employment roles with the Holders, which arrangements will not be materially increased in connection
with or as a result of Jack Bryant becoming or serving as a Holders Director, the Holders Directors will not accept any incentive,
compensation or other payment that would influence any of them to recommend that Perceptron enter into a transaction for the sale
of Perceptron or to recommend any other significant initiative affecting Perceptron and its shareholders, but nothing herein will
prevent Holders Directors from recommending such transactions or initiatives as specifically permitted in this Agreement.

 

h. Except as otherwise set forth in this Section 5(h), each
Holders Director shall comply with all policies, procedures, processes, codes, rules, standards and guidelines applicable to Directors
(as each may be amended from time to time for all Directors) and will execute the Non-Disclosure Agreement substantially in the
form attached hereto as Exhibit A (the “Confidentiality Agreement”).   Notwithstanding the foregoing,
Jack Bryant may discuss confidential information with officers and managers of the Holders in accordance with and subject to the
terms of the Confidentiality Agreement after the Confidentiality Agreement has been mutually executed and delivered to Perceptron
by Jack Bryant, and, if applicable, officers and managers of the Holders who will receive confidential information, and subject
to full compliance with Perceptron’s insider trading policies.

 

i.Perceptron agrees that if any of the Holders Directors
are unable to serve as a director, resign as a director or are removed as a director, Holders shall have the ability to recommend
a substitute person who satisfies all of the requirements for board candidates set forth in Section 1(f) and 5, and, except for
a substitute for Jack Bryant, is not an affiliate or associate of any shareholder who owns more than five percent of the outstanding
shares of Common Stock of Perceptron, (“Replacement Director”) for approval by the Nominating and Corporate Governance
Committee of the Board, in good faith after exercising its fiduciary duties, which approval shall not be unreasonably withheld.
Upon the recommendation of a Replacement Director nominee by the Nominating and Corporate Governance Committee of the Board, the
Board shall vote on the appointment of such Replacement Director to the Board no later than ten (10) business days after the Nominating
and Corporate Governance Committee recommendation of such Replacement Director; provided, however, that if the Board does not elect
such Replacement Director to the Board, the parties shall continue to follow the procedures of this section 5(i) until a Replacement
Director is elected to the Board.

 

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6.Litigation. Perceptron will not, directly or indirectly,
initiate any litigation against Holders, except to enforce the terms of this Agreement or alleging fraud.

 

7.Dispositions. Except as provided below, Holders
may dispose of any shares of Perceptron common stock in any manner and at any time.

 

a.Holders agree that they will not transfer or dispose of
any shares of Perceptron common stock in an open market transaction if, to the actual knowledge of Holders (without any obligation
to inquire or conduct any investigation), the person making such acquisition will beneficially own, together with its affiliates
and any member of a “group” (within the meaning of the Exchange Act) in which such acquirer is a party, immediately
following such acquisition 5% or more of the Perceptron common stock then outstanding.

 

b.Holders
agree that they will not transfer or dispose of any shares of Perceptron common stock in a private transaction if, to the actual
knowledge of Holders (after reasonable inquiry or investigation), the person making such acquisition will beneficially own, together
with its affiliates and any member of a “group” (within the meaning of the Exchange Act) in which such acquirer is
a party, immediately following such acquisition 5% or more of the Perceptron common stock then outstanding. For these purposes,
a representation from the person making such acquisition that it will not beneficially own, together with its affiliates and any
member of a “group” in which such acquirer is a party, immediately following such acquisition, 5% or more of the Perceptron
common stock then outstanding, shall be deemed a reasonable inquiry or investigation.

 

c.The restrictions set forth in Section 7(a) and 7(b) above
shall not apply to any dispositions made in connection with any merger, consolidation, business combination, tender or exchange
offer, sale or purchase of assets, sale or purchase of securities, dissolution, liquidation, restructuring, recapitalization or
similar transactions of or involving Perceptron that is supported by a majority of the Directors (as defined in Section 3(c) above).

 

8. Certification. At any time and from time to time
during the Covered Period (as defined in Section 9(a)), Holders shall, upon request of Perceptron, certify to Perceptron as to
the number of shares of common stock or other voting securities of Perceptron they and their affiliates and associates beneficially
own and that they and their affiliates and associates have voted such common stock and securities as required by this Agreement.

 

9. Termination.

 

a. This Agreement is effective as of the date hereof and
shall remain in full force and effect for the period (the “Covered Period”) commencing on the date hereof and ending
on the earlier of (i) date that is thirty (30) days prior to the deadline for a shareholder to submit nominations at the 2017 Annual
Meeting of the Shareholders of Perceptron (the “2017 Annual Meeting”) in accordance with the provisions set forth in
Perceptron’s Bylaws in effect at such time, or (ii) the termination of this Agreement as set forth in Section 9(b)(ii).

 

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b. Unless previously terminated pursuant to Section 9(a),
(i) Sections 5(a)(vi) and (vii) and 5(i) of this Agreement shall terminate, and Holders shall cause Jack Bryant to tender his resignation
from the Board, following the vote of a majority of Directors other than the Holders Directors in favor of such resignation, upon
Holders taking any action that results in Holders having beneficial ownership of less than five percent of the outstanding shares
of common stock of Perceptron (or, while Holders have beneficial ownership of less than five percent of the outstanding shares
of Common Stock of Perceptron, Holders disposing of more than 1% of the outstanding shares of Common Stock of Perceptron in the
aggregate) or (ii) this Agreement shall terminate, and Holders shall cause the Holders Directors to tender their resignations from
the Board, following the vote of a majority of Directors other than the Holders Directors in favor of such termination and resignation,
upon any person becoming the beneficial owner of more than 50% of Perceptron’s voting stock, including any merger, acquisition
or other type of business combination.

 

10. Public Announcement. Perceptron shall promptly
disclose the existence of this Agreement after its execution pursuant to a press release substantially in the form attached hereto
as Exhibit B; however, neither party shall disclose the existence of this Agreement until the press release is issued. Holders
shall not make any public announcement or public statement that is inconsistent with or contrary to the statements made in the
press release.

 

11. Remedies. Perceptron and Holders acknowledge
and agree that a breach or threatened breach by either party may give rise to irreparable injury inadequately compensable in damages,
and accordingly each party shall be entitled to injunctive relief to prevent a breach of the provisions hereof and to enforce specifically
the terms and provisions hereof in any state or federal court having jurisdiction, in addition to any other remedy to which such
aggrieved party may be entitled to at law or in equity.

 

12.Notices. All notice requirements and other communications
shall be deemed given when delivered personally or by email, or on the following business day after being sent by overnight courier
with a nationally recognized courier service such as Federal Express, addressed to Holders and Perceptron as follows:

 

Perceptron:

 

David Watza

Perceptron,
Inc.

47827 Halyard
Drive

Plymouth,
MI 48170

dwatza@perceptron.com

 

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With a copy to:

Thomas S. Vaughn.

Dykema Gossett PLLC

Address: 400 Renaissance Center

Detroit, Michigan 48243

Email: tvaughn@dykema.com

 

Holders:

 

Jack Bryant

Harbert Discovery Fund LP

2100 Third Avenue North

Suite 600

Birmingham, AL 35203

jbryant@harbert.net

 

With a copy to:

Kevin McGovern

Harbert Management Corporation

2100 Third Avenue North, Suite 600

Birmingham, AL 35203

kmcgovern@harbert.net

 

13.Entire Agreement. This Agreement constitutes the
entire agreement between the parties hereto pertaining to the subject matter hereof and supersedes all prior and contemporaneous
agreements, understandings, negotiations and discussions of the parties in connection therewith not referred to herein.

 

14. Counterparts; Facsimile. This Agreement may be
executed in any number of counterparts and by the parties hereto in separate counterparts, and signature pages may be delivered
by facsimile, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute
one and the same agreement.

 

15. Headings. The headings in this Agreement are
for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

16. Governing Law. This Agreement shall be governed
and construed in accordance with the laws of the State of Michigan, without regard to the conflict of law principles thereof. The
parties and their respective Representatives: (a) irrevocably and unconditionally consent and submit to the jurisdiction of state
courts located in Michigan and federal courts located in Wayne County, Michigan, for purposes of any action, suit or proceeding
arising out of or relating to this Agreement; (b) agree that service of any process, summons, notice or document by U.S. registered
mail to the address set forth in Section 12 of this Agreement shall be effective service of process for any action, suit or proceeding
brought against them; (c) irrevocably and unconditionally waive any objection to the laying of venue of any action, suit or proceeding
arising out of or relating to this Agreement in any state court located in Michigan or federal court located in Wayne County, Michigan;
and (d) irrevocably and unconditionally waive the right to plead or claim, and irrevocably and unconditionally agree not to plead
or claim, that any action, suit or proceeding arising out of or relating to this Agreement that is brought in any state court located
in Michigan or federal court located in Wayne County, Michigan, has been brought in an inconvenient forum.

 

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17. Severability. In the event one or more of the
provisions of this Agreement should, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provisions of this Agreement, and this Agreement shall be construed as
if such invalid, illegal or unenforceable provision had never been contained herein.

 

18. Successors and Assigns. This Agreement shall
not be assignable by any of the parties to this Agreement. This Agreement, however, shall be binding on successors of the parties
hereto.

 

19. Survival of Representations, Warranties and Agreements.
All representations, warranties, covenants and agreements made herein shall survive the execution and delivery of this Agreement,
but will not survive the termination of this Agreement, provided, however, that any claim that a party may have for a breach of
this Agreement occurring prior to the termination of this Agreement shall survive such termination.

 

20. Amendments. This Agreement may not be modified,
amended, altered or supplemented except upon the execution and delivery of a written agreement executed by all of the parties hereto.

 

21. Further Action. Each party agrees to execute
any and all documents, and to do and perform any and all acts and things necessary or proper to effectuate or further evidence
the terms and provisions of this Agreement.

 

22. Expenses. Each party agrees to bear its own expenses
in connection with the transactions contemplated hereby.

 

23.Compliance. Holders shall be responsible for any
breach or failure to comply with the terms of this Agreement on the part of any of their affiliates or associates.

 

 

 

[Remainder of Page Intentionally Left Blank]

 

 

 

 

 

    	 	11	 

    

    

 

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

 

	 	PERCEPTRON, INC.	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ W. Richard Marz	 
	 	Name: W. Richard Marz	 
	 	Title: Chairman of the Board, President and Chief Executive Officer
	 	 	 	 
	 	 	 	 
	 	HARBERT DISCOVERY FUND, LP
	 	By: Harbert Discovery Fund GP, LLC
	 	 	 	 
	 	By: 	/s/ Kevin A. McGovern	 
	 	Name:  Kevin A. McGovern	 
	 	Title:  Vice President and Associate General Counsel
	 	 	 	 
	 	 	 	 
	 	HARBERT DISCOVERY FUND, GP, LLC
	 	 	 	 
	 	By: 	/s/ Kevin A. McGovern	 
	 	Name:  Kevin A. McGovern	 
	 	Title:  Vice President and Associate General Counsel
	 	 	 	 
	 	 	 	 
	 	HARBERT FUND ADVISORS, INC.
	 	 	 	 
	 	By: 	/s/ John W. McCollough	 
	 	Name:  John W. McCollough	 
	 	Title:  Executive Vice President and General Counsel
	 	 	 	 
	 	 	 	 
	 	HARBERT MANAGEMENT CORPORATION
	 	 	 	 
	 	By: 	/s/ John W. McCollough	 
	 	Name:  John W. McCollough	 
	 	Title:  Executive Vice President and General Counsel

 

 

 

 

12W&E Source Corp.: Exhibit 10.1 - Filed by newsfilecorp.com

DEBT CONVERSION AGREEMENT 

The debt conversion agreement (“Agreement”) is entered into
between W&E Source Corp., a Nevada corporation (“Corporation”), and Lin Li
(“Debtholder”) dated this 5th day of August, 2016 (“Effective Date”) 

     1. Conversion. 

          (a)
As of the Effective Date, Debtholder hereby elects to convert $25,920 which
represents the principal and no interest owed by the Corporation to Debtholder
into 4,712,727 shares of common stock of the Corporation (“Shares”) as set forth
in Section 3 below. 

     2. Representations, Warranties
and Covenants. 

          (a)
Of the Corporation. The Corporation hereby makes the following
representations, warranties and covenants in favor of Debtholder: 

               (i)
Authorized Shares. The Shares identified in this Agreement constitute
duly authorized common stock of the Corporation, the issuance of which to
Debtholder has been duly authorized by the board of directors of the
Corporation. 

               (ii)
Validly Issued. Upon issuance of the Shares identified in this Agreement
and receipt by the Corporation, such Shares shall be validly issued and
outstanding, fully paid, non-assessable and free and clear of all liens and
encumbrances arising through the actions of the Corporation or its directors,
officers, employees or agents. 

          (b)
Of Debtholder. Debtholder (the “Debtholder”) hereby makes the following
representations, warranties and covenants with respect to Debtholder in favor of
the Corporation. 

               (i)
Debtholder. Debtholder is the owner of certain debt of the Corporation,
free and clear of all liens, claims and encumbrances. 

               (ii)
Authorization. Debtholder has full power and authority to enter into this
Agreement, and this Agreement, when executed and delivered, will constitute a
valid and legally binding obligation of Debtholder.

               (iii)
To Be Purchased Entirely For Own Account. This Agreement is made with
Debtholder in reliance upon Debtholder’s representation to the Corporation,
which, by Debtholder’s execution of this Agreement, Debtholder hereby confirms,
that the Shares to be purchased by Debtholder are being and will be acquired for
investment for Debtholder’s own account, not as nominee or agent, and not with a
view to the resale or distribution of any part thereof, and that Debtholder has
any present intention of selling, granting any participation in or otherwise
distributing the same. Debtholder is familiar with the phrase “acquired for investment and not with a view to distribution” as it relates
to the Securities Act of 1933, as amended (the “Securities Act”) and state
securities laws and the special meaning given to such term by the Securities and
Exchange Commission (the “SEC”). By executing this Agreement, Debtholder further
represents that Debtholder does not have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participations to such
person or to any third person, with respect to any of the Securities. 

YOUZHE LI CONVERSION AGREEMENT - 1 

               (iv)
Reliance Upon Debtholder’s Representations and Warranties. Debtholder
understands that the Shares are not, and at the time of issuance may not be,
registered under the Securities Act on the ground that the sale provided for in
this Agreement and the issuance of securities hereunder is exempt from
registration under the Securities Act, and that the Corporation’s reliance on
such exemption is predicated on the Debtholder’s representations and warranties
set forth herein. 

               (v)
Receipt of Information. Debtholder has received all the information he
considers necessary or appropriate for deciding whether to purchase the Shares.
Debtholder further represents that Debtholder has had an opportunity to ask
questions and receive answers from the Corporation regarding the terms and
conditions of the offering and the business, properties, prospects and financial
condition of the Corporation and to obtain additional information necessary to
verify the accuracy of any information furnished to Debtholder or to which
Debtholder had access. 

               (vi)
Investment Experience. Debtholder represents that he is experienced in
evaluating and investment in private placement transactions of securities of
companies in a similar stage of development as the Corporation and acknowledges
that Debtholder can bear the economic risk of Debtholder’s investment and has
such knowledge and experience in financial and business matters that he is
capable of evaluating the merits and risks of the investment in the Shares. 

               (vii)
Accredited Investor. Debtholder is an Accredited Investor, as such term
is defined in Regulation D promulgated under the Securities Act. 

               (viii)
Restricted Securities. Debtholder understands that neither the Shares may
not be sold, transferred or otherwise disposed of without registration under the
Securities Act or an exemption therefrom, and that in the absence of an
effective registration statement covering the Shares, or an available exemption
from registration under the Securities Act, the Shares must be held
indefinitely. Debtholder is aware that the Shares may not be sold pursuant to
Rule 144 promulgated under the Securities Act unless all of the conditions of
that Rule are met. Among the conditions for use of Rule 144 may be the
availability of current information to the public about the Corporation.

               (ix)
Legends. To the extent applicable, each certificate or other document
evidencing any of the Shares shall be endorsed with the legends substantially in
the form set forth below: 

YOUZHE LI CONVERSION AGREEMENT - 2 

The following legend under the Securities Act: 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED,
ASSIGNED, PLEDGED, OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT,
OR W&E SOURCE CORP. (THE “CORPORATION”) HAS RECEIVED AN OPINION OF COUNSEL
OR OTHER EVIDENCE, SATISFACTORY TO THE CORPORATION AND ITS COUNSEL, THAT SUCH
REGISTRATION IS NOT REQUIRED. 

     3. Definitions: 

          (a)
“Commission” shall mean the U.S. Securities and Exchange Commission. 

          (b)
“Conversion Price” shall mean $0.0055 per share of Common Stock. 

          (c)
“Person” shall mean any natural person, trust, corporation, partnership, limited
partnership, limited liability company, unincorporated association or other
entity. 

          (d)
“Securities Act” shall mean the Securities Act of 1933, as amended. 

     4. Governing Law. This
Agreement shall be governed by the laws of the State of Nevada, without
reference to the choice of laws rules of such state. 

     5. Attorneys’ Fees. In the
event any party hereto fails to perform any of its obligations under this
Agreement or the transactions contemplated hereby or in the event a dispute
arises concerning the meaning or interpretation of any provision of this
Agreement, the defaulting party or the party not prevailing in such dispute, as
the case may be, shall pay any and all reasonable costs and expenses incurred by
the other party in enforcing or establishing its rights hereunder, including
court costs and reasonable attorneys’ fees. 

     6. Successors and Assigns.
This Agreement shall be binding upon each party hereto and its respective
successors and assigns. 

     7. Severability. If any
term of provision of this Agreement or any application thereof shall be held
invalid or unenforceable, the remainder of this Agreement and any other
application of such term or provision shall not be affected thereby. 

     8. Entire Agreement. This
Agreement constitutes the entire agreement of the parties with respect to the
subject matter hereof, and may not be changed or modified except by an agreement
in writing signed by the parties hereto. The Corporation and Debtholder hereby
agree that all prior or contemporaneous oral understandings, agreements or
negotiations relative to the subject matter hereof are merged into and revoked
by this Agreement. 

     9. Interpretation. All
provisions of this Agreement shall be interpreted according to their fair
meaning and shall not be strictly construed against any party. 

YOUZHE LI CONVERSION AGREEMENT - 3 

     10. Counterparts; Facsimile
Signature. This Agreement may be executed in one or more counterparts, each
of which shall be an original, but all of which, taken together, shall
constitute one agreement. An original signature or copy thereof transmitted by
facsimile shall constitute an original signature for purposes of this Agreement.

     IN WITNESS WHEREOF, the
undersigned have executed this Agreement as of the Effective Date. 

	
      W&E Source Corp. 

       
	 
	Authorized Signatory, 	 
	  	 
	/s/ Hong Ba
    
 	 
	 
Name: Hong Ba 	 
	Title: Chief Executive Officer 	 
	
       

      DEBTHOLDER 

       
	 
	
      Authorized Signatory, 

       
	 
	/s/ Lin Li
      
  	 
	  
Name: Lin Li 	 
	Title: Lin Li 	 

YOUZHE LI CONVERSION AGREEMENT - 4

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