Document:

ex_331017.htm

Exhibit 10.7

 

THE TRU SHRIMP COMPANY

2019 EQUITY INCENTIVE PLAN

 

STOCK OPTION AGREEMENT

 

THIS STOCK OPTION AGREEMENT (“Option Agreement”) is entered into as of the “Grant Date” set forth below, by and between The tru Shrimp Company, a Deleware corporation (the “Company”) and the person named below (the “Optionee”). The Option granted hereby is granted under The tru Shrimp Company 2019 Equity Incentive Plan (the “Plan”). Unless otherwise defined herein, terms used in this Option Agreement that are defined in the Plan will have the meanings given to them in the Plan.

 

1.          Grant of Option. The Company hereby grants to the Optionee an option (the “Option”) to purchase the number of shares of Common Stock of the Company (the “Shares”) set forth below, at the exercise price per Share set forth below (the “Exercise Price”), subject to the terms and conditions of the Plan, which is incorporated herein by reference. In the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Option Agreement, the terms and conditions of the Plan will prevail.

 

	
			Grant Number:

				 
	
			Optionee:

				 
	
			Grant Date:

				 
	
			Vesting Commencement Date:

				 
	
			Total Number of Shares of Stock Subject to the Option:

				 
	
			Exercise Price per Share:

				 
	
			Total Exercise Price:

				 
	
			Type of Option (check one):

				
			Incentive Stock Option

			Non-Statutory Stock Option

			
	
			Term/Expiration Date:

				 
	
			Earlier Expiration:

				
			See Section 6.

			

 

 

 

 

2.          Vesting Schedule. This Option may be exercised, in whole or in part, in accordance with the following schedule:

 

(a)    Time-Based Vesting. This Option will vest and become exercisable with respect to one-fourth (1/4th) of the Shares subject to the Option on the Grant Date, the next one-fourth (1/4th) on the one (1) year anniversary of the Vesting Commencement Date, the next one-fourth (1/4th) on the two (2) year anniversary of the Vesting Commencement Date, and the final one-fourth (1/4th) on the third (3) year anniversary of the Vesting Commencement Date; provided, however, that if the Optionee ceases to be employed by the Company or to provide services to the Company before this Option has become exercisable with respect to all of the Shares, no additional Shares will vest after the termination of such services. This Option may be exercised, in whole or in part, at any time or from time to time after it vests and until this Option expires pursuant Section 6 of this Option Agreement.

 

(b)    Treatment Upon a Change in Control. In the event of a Change in Control of the Company, this Option will become exercisable in its entirety if a Change in Control of the Company occurs on or before the date the Optionee ceases to provide services to the Company.

 

3.          Type of Option. If designated above as an Incentive Stock Option (“ISO”), this Option is intended to qualify as an Incentive Stock Option under Section 422 of the Code. However, if this Option is intended to be an Incentive Stock Option, to the extent that it exceeds the $100,000 rule of Code Section 422(d) or otherwise fails to satisfy the requirements of Code Section 422, it will be treated as a Non-Statutory Stock Option (“NSO”).

 

4.          Exercise of Option.

 

(a)    Right to Exercise. This Option will be exercisable during its term in accordance with the vesting schedule set forth in Section 2 of this Option Agreement and with the applicable provisions of the Plan and this Option Agreement. This Option may not be exercised for a fraction of a share. No portion of the Option which has not become vested and exercisable at the date of the Optionee’s termination of service to the Company will thereafter become vested and exercisable, except as may be set forth in a written agreement between the Company and the Optionee.

 

(b)    Duration of Exercisability. The installments provided in the vesting schedule set forth in Section 2 of this Option Agreement are cumulative. Each such installment which becomes vested and exercisable pursuant to the vesting schedule set forth in Section 2 of this Option Agreement will remain vested and exercisable until this Option expires pursuant Section 6 of this Option Agreement.

 

2

 

 

(c)    Method of Exercise. This Option will be exercisable by delivery of an exercise notice in the form attached hereto as Exhibit A (the “Exercise Notice”), stating the election to exercise the Option and the number of Shares with respect to which the Option is being exercised (the “Exercised Shares”), and containing such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan. The Exercise Notice must be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares. The Optionee will also be required to make adequate provision for all withholding taxes relating to the exercise as a condition to the exercise of the Option. This Option will be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by the aggregate Exercise Price and arrangement for the adequate provision for the withholding taxes relating to the exercise.

 

(d)    Issuance of Shares. No Shares will be issued pursuant to the exercise of the Option unless such issuance and exercise complies with applicable laws. Assuming such compliance, for income tax purposes the Shares will be considered transferred to the Optionee on the date on which the Option is exercised with respect to such Exercised Shares.

 

(e)    Restrictions on Exercise. This Option may not be exercised if the issuance of Shares upon such exercise or the method of payment of consideration for such shares would constitute a violation of any applicable law.

 

(f)    Investment Representations. Unless the Shares have been registered under the Securities Act, at the time this Option is exercised, the Exercise Notice delivered to the Company by the Optionee will, if required by the Company, contain the investment representations included in the form of Exercise Notice attached hereto as Exhibit A.

 

5.          Method of Payment. The aggregate Exercise Price may be paid by any of the following methods, or a combination thereof, at the election of the Optionee:

 

(a)    cash or check;

 

(b)    pursuant to any and all of the provisions set forth in Section 7.4 of the Plan; or

 

(c)    surrender of other shares of Common Stock which (i) in the case of shares acquired from the Company, have been owned by the Optionee for more than six (6) months on the date of surrender, and (ii) have a Fair Market Value on the date of the exercise equal to the aggregate Exercise Price of the Exercised Shares.

 

6.          Expiration of Option. This Option will expire and may not be exercised to any extent by anyone after the first to occur of the following events:

 

(a)    Expiration of Term of Option. The Term/Expiration Date set forth in Section 1 of this Option Agreement;

 

3

 

 

(b)    Termination of Service without Cause. The expiration of three months from the date of the Optionee’s voluntary or involuntary termination of service to the Company, unless the Optionee’s service is terminated for Cause or such termination occurs by reasons of the Optionee’s death or disability;

 

(c)    Cause. The date of the Optionee’s termination of service if the Optionee’s service is terminated for Cause (as defined in the Optionee’s employment contract);

 

(d)    Death or Disability.  The expiration of one year from the date of the Optionee’s death, either during or after the Optionee’s period of service to the Company, or of termination of the Optionee’s service by reason of the Optionee’s Disability; or

 

(e)    Cancellation upon Change in Control. The cancellation of this Option by action of the Committee pursuant to Section 14 of the Plan, in connection with a Change in Control of the Company.

 

7.          Non-Transferability of Option. This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of the Optionee only by the Optionee. The terms of the Plan and this Option Agreement will be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.

 

8.          Lock-Up Period. The Optionee hereby agrees that, if so requested by the Company or the representative of the underwriters (the “Managing Underwriter”) in connection with an initial underwritten public offering of Common Stock of the Company under the Securities Act, the Optionee will not sell, offer to sell or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock (or other securities) of the Company held by the Optionee (other than those included in the registration) for such period of time after execution of an underwriting agreement in connection with such offering for which all of the Company’s then directors and executive officers agree to be similarly bound (the “Market Standoff Period”). The Optionee agrees to execute and deliver such other agreements as may be reasonably requested by the Company or the Managing Underwriter which are consistent with the foregoing or which are necessary to give further effect thereto; but the Optionee will be bound by the provisions of this Section whether or not the Optionee executes such other agreements requested by the Company or the Managing Underwriter. The Company may impose stop-transfer instructions with respect to the shares of Common Stock (or other securities) subject to the foregoing restriction until the end of such Market Standoff Period. The Optionee agrees that any transferee of the Option or shares acquired pursuant to the Option will be bound by this Section.

 

9.          Tax Obligations.

 

(a)    Withholding Taxes. The Optionee agrees to make appropriate arrangements with the Company (or the Parent or Subsidiary employing or retaining the Optionee) for the satisfaction of all Federal, state, local and foreign income and employment tax withholding requirements applicable to the Option exercise. The Optionee acknowledges and agrees that the Company may refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are not delivered at the time of exercise.

 

4

 

 

(b)    Notice of Disqualifying Disposition of ISO Shares. If the Option granted to the Optionee herein is an ISO, and if the Optionee sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (i) the date two years after the Date of Grant, or (ii) the date one year after the date of exercise, the Optionee must immediately notify the Company in writing of such disposition. The Optionee acknowledges and agrees that the Optionee may be subject to income tax withholding by the Company on the compensation income recognized by the Optionee.

 

10.         NO GUARANTEE OF CONTINUED SERVICE. THE OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS AN EMPLOYEE OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED AN OPTION OR PURCHASING SHARES HEREUNDER). THE OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND WILL NOT INTERFERE WITH THE OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE THE OPTIONEE’S RELATIONSHIP AS AN EMPLOYEE AT ANY TIME, WITH OR WITHOUT CAUSE.

 

11.         Entire Agreement; Governing Law. The Plan is incorporated herein by reference. The Plan and this Option Agreement constitute the entire agreement of the parties regarding the acquisition of stock in the Company and supersede in their entirety all prior oral and written undertakings and agreements of the Company and the Optionee on that subject, with the exception of any other options previously granted and delivered to the Optionee under the Plan or any similar plan maintained by the Company or its Affiliates. This agreement may not be modified adversely to the Optionee’s interest except by means of a writing signed by the Company and the Optionee. This agreement is governed by the internal substantive laws but not the choice of law rules of the State of Deleware.

 

* * * * *

 

[Signature page follows]

 

5

 

 

Signature page to Stock Option Agreement

 

By the Optionee’s signature and the signature of the Company’s representative below, the Optionee and the Company agree that this Option is granted under and governed by the terms and conditions of the Plan and this Option Agreement. The Optionee has reviewed the Plan and this Option Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option Agreement and fully understands all provisions of the Plan and Option Agreement. The Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board of Directors (or any Committee to whom the Board has delegated administration of the Plan) upon any questions relating to the Plan and this Option Agreement.

 

The Optionee further agrees to notify the Company of any change in the Optionee’s residence address indicated below.

 

	
			OPTIONEE:

				 	
			THE TRU SHRIMP COMPANY

			
	 	 	 
	 	 	 
	
			___________________________________

			(Signature)

				 	
			___________________________________

			By: Michael Ziebell

			Title: CEO

			
	
			___________________________________

				 
	
			(Print Name)

			 

			Address:

				 
	
			___________________________________

			___________________________________

			___________________________________

				 

 

6

 

 

 

Exhibit A

 

THE TRU SHRIMP COMPANY

2019 EQUITY INCENTIVE PLAN

 

EXERCISE NOTICE

 

The tru Shrimp Company

330 3rd Street

Balaton, MN 56115

 

1.          Exercise of Option. Effective as of the Exercise Date set forth below, the undersigned (the “Purchaser”) hereby elects to exercise the Purchaser’s Option to purchase shares of the Common Stock (the “Shares”) of The tru Shrimp Company (the “Company”) under and pursuant to the The tru Shrimp Company 2019 Equity Incentive Plan (the “Plan”) and the Stock Option Agreement bearing the Grant Number and Grant Date set forth below (the “Option Agreement”). The Option is being exercised with respect to the number of Shares stated below (the “Exercised Shares”).

 

	
			Exercise Date:

				
			_______________, 20__

			
	 	 
	
			Purchaser:

				
			______________________________________

			
	 	 
	
			Grant Number:

				
			______________

			
	 	 
	
			Grant Date:

				
			_______________, 20__

			
	 	 
	
			Number of Exercised Shares:

				
			______________ Shares

			
	 	 
	
			Exercise Price per Share:

				
			$_____ per Share

			
	 	 
	
			Total Exercise Price:

				
			$______________

			

 

2.           Delivery of Payment. The Purchaser herewith delivers to the Company the total Exercise Price for the Shares, and any and all withholding taxes due in connection with the exercise of the Option, in the form of (check one or more):

 

☐           Cash or check;

 

☐           Another method set forth under the Plan ; or

 

☐           Surrender of other shares of Common Stock that, in the case of shares acquired from the Company, have been owned by the Purchaser for more than six (6) months on the date of surrender.

 

A-1

 

 

3.           Representations of Purchaser. In connection with the purchase of the Shares, the Purchaser represents to the Company as follows:

 

(a)         The Purchaser (i) acknowledges that the Purchaser has received, read and understood the Plan and the Option Agreement, (ii) agrees that the Shares are being acquired in accordance with and subject to the terms, provisions and conditions of the Plan and the Option Agreement, and (iii) agrees to abide by and be bound by their terms and conditions.

 

(b)         The Purchaser agrees (i) to provide such additional documents as the Company may require pursuant to the terms of the Plan, (ii) to provide for the payment by the Purchaser to the Company (in the manner designated by the Company) of the Company’s withholding obligation, if any, relating to the exercise of the Option, and (iii) if this exercise relates to an Incentive Stock Option, to notify the Company in writing promptly after the date of any disposition of any of the shares of Common Stock issued upon exercise of the Option that occurs within two (2) years after the date of grant of the Option or within one (1) year after such shares of Common Stock are issued upon exercise of the Option.

 

(c)         The Purchaser is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Shares.

 

(d)         The Purchaser is acquiring these Shares for investment for the Purchaser’s own account only and not with a view to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”).

 

(e)         The Purchaser acknowledges and understands that the Shares constitute “restricted securities” under the Securities Act and have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of the Purchaser’s investment intent as expressed herein. The Purchaser further understands that the Shares must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available. The Purchaser further acknowledges and understands that the Company is under no obligation to register the Shares.

 

(f)         The Purchaser understands that the certificate evidencing the Shares will be imprinted with a legend that prohibits the transfer of the Shares unless they are registered or such registration is not required in the opinion of counsel satisfactory to the Company and any other legend required under applicable state securities laws.

 

4.           Rights as Stockholder. Until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to the shares of Common Stock subject to the Option, notwithstanding the exercise of the Option. The Shares will be issued to the Purchaser as soon as practicable after the Option is exercised in accordance with the Option Agreement. No adjustment will be made for a dividend or other right for which the record date is prior to the date of issuance of the Shares.

 

A-2

 

 

6.           Tax Consultation. The Purchaser understands that the Purchaser’s purchase or disposition of the Shares will have certain tax consequences, some of which may be adverse tax consequences. The Purchaser represents that the Purchaser has consulted with any tax consultants the Purchaser deems advisable in connection with the purchase or disposition of the Shares and that the Purchaser is not relying on the Company for any tax advice.

 

7.           Restrictive Legends and Stop-Transfer Orders.

 

(a)         Legends. The Purchaser understands and agrees that the Company will cause the legends set forth below or legends substantially equivalent thereto, to be placed upon any certificate(s) evidencing ownership of the Shares together with any other legends that may be required by the Company or by state or federal securities laws:

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COMPANY COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

 

THE SHARES EVIDENCED BY THIS CERTIFICATE AND ANY TRANSFER THEREOF ARE SUBJECT TO THE RESTRICTIONS CONTAINED IN A STOCKHOLDERS’ AGREEMENT AMONG THE COMPANY AND ITS STOCKHOLDERS. COPIES OF THE AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY.

 

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER FOR A MARKET STANDOFF PERIOD FOLLOWING THE EFFECTIVE DATE OF THE UNDERWRITTEN PUBLIC OFFERING OF THE COMPANY’S SECURITIES AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF BY THE HOLDER WITHOUT THE CONSENT OF THE COMPANY OR THE MANAGING UNDERWRITER.

 

(b)         Stop-Transfer Notices. The Purchaser agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

 

(c)         Refusal to Transfer. The Company will not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Exercise Notice or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares are transferred in violation of any of the provisions of this Exercise Notice.

 

A-3

 

 

8           Binding Effect. Subject to the restrictions on transfer herein set forth, this Exercise Notice will inure to the benefit of and be binding upon the Purchaser and his or her heirs, executors, administrators, successors and assigns.

 

9.           Entire Agreement; Governing Law. The Plan and Option Agreement are incorporated herein by reference. This Exercise Notice, the Plan and the Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Purchaser with respect to the subject matter hereof, and may not be modified adversely to the Purchaser’s interest except by means of a writing signed by the Company and the Purchaser. This Option Agreement is governed by the internal substantive laws but not the choice of law rules, of the State of Deleware.

 

 

[Signature page follows]

 

A-4

 

 

Signature Page to Exercise Notice

 

[To be signed upon the exercise of the Option]

 

	
			Submitted by:

				 	
			Accepted by:

			
	 	 	 
	
			PURCHASER:

				 	
			THE TRU SHRIMP COMPANY

			
	 	 	 
	 	 	 
	
			___________________________________

			(Signature)

				 	
			By: _______________________________

			Title: ______________________________

			
	 	 	 
	 	 
	
			(Print Name)

			 

			Address:

				 
	
			___________________________________

			___________________________________

			___________________________________

			
	 	 	
			___________________________________

			(Date Received)

			

 

 

A-5ex_331018.htm

Exhibit 10.12

 

 

 

 

 

 

 

 

 

 

VOTING AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

Page

 

	1.	
			Voting Provisions Regarding Board of Directors

				1
	 	 	 
	 	
			1.1

				
			Size of the Board

				1
	 	
			1.2

				
			Board Composition

				1
	 	
			1.3

				
			Failure to Designate a Board Member

				1
	 	
			1.4

				
			Removal of Board Members

				1
	 	
			1.5

				
			No Liability for Election of Recommended Directors

				1
	 	 	 
	2.	
			Remedies

				1
	 	 	 
	 	
			2.1

				
			Covenants of the Company

				1
	 	
			2.2

				
			Specific Enforcement

				1
	 	
			2.3

				
			Remedies Cumulative

				1
	 	 	 
	3.	
			“Bad Actor” Matters.

				1
	 	 	 
	 	
			3.1

				
			Representation

				1
	 	
			3.2

				
			Covenant

				1
	 	 	 
	4.	
			Miscellaneous.

				1
	 	 	 
	 	
			4.1

				
			Term.

				1
	 	
			4.2

				
			Successors and Assigns

				1
	 	
			4.3

				
			Governing Law

				1
	 	
			4.4

				
			Counterparts

				1
	 	
			4.5

				
			Titles and Subtitles

				1
	 	
			4.6

				
			Notices

				1
	 	
			4.7

				
			Consent Required to Amend, Terminate or Waive

				1
	 	
			4.8

				
			Severability

				1
	 	
			4.9

				
			Entire Agreement

				1
	 	
			4.10

				
			Manner of Voting

				1
	 	
			4.11

				
			Further Assurances

				1

 

Schedule A          -         Investors

 

i

 

 

VOTING AGREEMENT

 

THIS VOTING AGREEMENT (this “Agreement”), is made and entered into as of this 8th day of August 2017, by and among The tru Shrimp Company, a Delaware corporation (the “Company”), each holder (“Stockholder”) of the Company’s Common Stock, $0.001 par value per share (“Common Stock”) or holder (“Noteholder”) of a Convertible Promissory Note convertible into Common Stock listed on Schedule A (with the Stockholders and Noteholder collectively, the “Investors”).

 

RECITALS

 

	 	
			A.

				
			In connection with the formation of the Company, Investors, RNI Aquaculture, LLC, a Minnesota limited liability company (“RNI”) and Ralco Nutrition, Inc., a Minnesota corporation (“Ralco,” together with RNI, collectively the “Founders”) initially capitalized the Company and collectively, as of the date hereof, hold the majority of the issued and outstanding shares of Common Stock.

			

 

	 	
			B.

				
			Concurrently with the execution of this Agreement, the Company and Investor, Schwan’s Shared Services, LLC, a Delaware limited liability company (“Schwan’s”) are entering into a Stock Purchase Agreement (the “Purchase Agreement”) providing for the sale of shares of the Company’s Common Stock, and in connection with that agreement the parties desire to provide Schwan’s with the right, among other rights, to designate the election of certain members of the board of directors of the Company (the “Board”) in accordance with the terms of this Agreement.

			

 

	 	
			C.

				
			On May 12, 2017 the Company entered into a note purchase agreement with Investor, Eagle Energy, LLC, a South Dakota limited liability company (“Eagle Energy”) for the purchase, sale and issuance by the Company of one of its Four Percent (4%) Convertible Promissory Notes (the “Notes”), with a Note issued to Eagle Energy effective May 31, 2017 and converted into Common Stock effective as of the date hereof, and in connection with the issuance of the Note the parties agreed to provide Eagle Energy with the right, among other rights, to designate the election of certain members of the Board in accordance with the terms of this Agreement.

			

 

NOW, THEREFORE, the parties agree as follows:

 

1.    Voting Provisions Regarding Board of Directors.

 

1.1    Size of the Board. Each Investor agrees to vote, or cause to be voted, all Shares (as defined below) owned by such Investor, or over which such Investor has voting control, from time to time and at all times, in whatever manner as shall be necessary to ensure that the size of the Board shall be set and remain at five (5) directors. For purposes of this Agreement, the term “Shares” shall mean and include any securities of the Company the holders of which are entitled to vote for members of the Board, including without limitation, all shares of Common Stock by whatever name called, now owned or subsequently acquired by an Investor, however acquired, whether through stock splits, stock dividends, reclassifications, recapitalizations, similar events or otherwise.

 

 

 

 

 

1.2    Board Composition. Each Investor agrees to vote, or cause to be voted, all Shares owned by such Investor, or over which such Investor has voting control, from time to time and at all times, in whatever manner as shall be necessary to ensure that at each annual or special meeting of stockholders at which an election of directors is held or pursuant to any written consent of the stockholders, the following persons shall be elected to the Board: 

 

(a)    One person designated by RNI (the “RNI Designee”), which individual shall initially be Jon Knochenmus.

 

(b)    One person designated by Ralco (the “Ralco Designee”), which individual shall initially be Brian Knochenmus.

 

(c)    One person designated by Schwan’s (the “Schwan’s Designee”), who shall be appointed by Schwan’s by written notice to the Company.

 

(d)    One person designated by Eagle Energy (the “Eagle Designee”), which individual shall initially be David M. Fick; and

 

(e)    The Company’s Chief Executive Officer, who shall initially be Michael B. Ziebell (the “CEO Director”), provided that if for any reason the CEO Director shall cease to serve as the Chief Executive Officer of the Company, each of the Investors shall promptly vote their respective Shares (i) to remove the former Chief Executive Officer from the Board if such person has not resigned as a member of the Board; and (ii) to elect such person’s replacement as Chief Executive Officer of the Company as the new CEO Director.

 

To the extent that any of clauses (a) through (e) above shall not be applicable, any member of the Board who would otherwise have been designated in accordance with the terms thereof shall instead be voted upon by all the stockholders of the Company entitled to vote thereon.

 

For purposes of this Agreement, an individual, firm, corporation, partnership, association, limited liability company, trust or any other entity (collectively, a “Person”) shall be deemed an “Affiliate” of another Person who, directly or indirectly, controls, is controlled by or is under common control with such Person, including, without limitation, any general partner, managing member, officer or director of such Person or any venture capital fund now or hereafter existing that is controlled by one or more general partners or managing members of, or shares the same management company with, such Person.

 

1.3    Failure to Designate a Board Member. In the absence of any designation from the Persons or groups with the right to designate a director as specified above, the director previously designated by them and then serving shall be reelected if still eligible to serve as provided herein.

 

2

 

 

1.4    Removal of Board Members. Each Investor also agrees to vote, or cause to be voted, all Shares owned by such Investor, or over which such Investor has voting control, from time to time and at all times, in whatever manner as shall be necessary to ensure that:

 

(a)    no director elected pursuant to this Agreement may be removed from office other than for cause unless (i) such removal is directed or approved by the affirmative vote of the Person entitled under to designate that director, or (ii) the Person(s) originally entitled to designate or approve such director pursuant to is no longer so entitled to designate or approve such director;

 

(b)    any vacancies created by the resignation, removal or death of a director elected pursuant to Subsections 1.3 or 1.4 shall be filled pursuant to the provisions of this Section 1; and

 

(c)    upon the request of any party entitled to designate a director as to remove such director, such director shall be removed.

 

All Investors agree to execute any written consents required to perform the obligations of this Agreement, and the Company agrees at the request of any party entitled to designate directors to call a special meeting of stockholders for the purpose of electing directors.

 

1.5    No Liability for Election of Recommended Directors. No Investor, nor any Affiliate of any Investor, shall have any liability as a result of designating a person for election as a director for any act or omission by such designated person in his or her capacity as a director of the Company, nor shall any Investor have any liability as a result of voting for any such designee in accordance with the provisions of this Agreement.

 

2.    Remedies.

 

2.1    Covenants of the Company. The Company agrees to use its best efforts, within the requirements of applicable law, to ensure that the rights granted under this Agreement are effective and that the parties enjoy the benefits of this Agreement. Such actions include, without limitation, the use of the Company’s best efforts to cause the nomination and election of the directors as provided in this Agreement.

 

2.2    Specific Enforcement. Each party acknowledges and agrees that each party hereto will be irreparably damaged in the event any of the provisions of this Agreement are not performed by the parties in accordance with their specific terms or are otherwise breached. Accordingly, it is agreed that each of the Company and the Stockholders shall be entitled to an injunction to prevent breaches of this Agreement, and to specific enforcement of this Agreement and its terms and provisions in any action instituted in any court of the United States or any state having subject matter jurisdiction.

 

2.3    Remedies Cumulative. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

 

3

 

 

3.    “Bad Actor” Matters.

 

3.1    Representation. Each Person with the right to designate or participate in the designation of a director pursuant to this Agreement hereby represents that none of the “bad actor” disqualifying events described in Rule 506(d)(1)(i)-(viii) promulgated under the Securities Act (a “Disqualification Event”) is applicable to such Person or any of its Rule 506(d) Related Parties, except, if applicable, for a Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable. For purposes of this Agreement, “Rule 506(d) Related Party” shall mean with respect to any Person any other Person that is a beneficial owner of such first Person’s securities for purposes of Rule 506(d) of the Securities Act.

 

3.2    Covenant. Each Person with the right to designate or participate in the designation of a director pursuant to this Agreement hereby agrees that it shall notify the Company promptly in writing in the event a Disqualification Event becomes applicable to such Person or any of its Rule 506(d) Related Parties, except, if applicable, for a Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable.

 

4.    Miscellaneous.

 

4.1    Term.

 

This Agreement shall be effective as of the date hereof and shall continue in effect until and shall terminate upon the earliest to occur of termination of this Agreement in accordance with Subsection 4.7 below.

 

4.2    Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

4.3    Governing Law. This Agreement shall be governed by the internal law of the State of Delaware.

 

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

 

4.5    Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

4.6    Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient’s next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address as set forth on Schedule A hereto, or to such email address, facsimile number or address as subsequently modified by written notice given in accordance with this Subsection 4.6.

 

4

 

 

4.7    Consent Required to Amend, Terminate or Waive. This Agreement may be amended or terminated and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument executed by the Company and the Investors.

 

4.8    Severability. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

 

4.9    Entire Agreement. Upon the effectiveness of this Agreement shall constitute the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled.

 

4.10    Manner of Voting. The voting of Shares pursuant to this Agreement may be effected in person, by proxy, by written consent or in any other manner permitted by applicable law. For the avoidance of doubt, voting of the Shares pursuant to the Agreement need not make explicit reference to the terms of this Agreement.

 

4.11    Further Assurances. At any time or from time to time after the date hereof, the parties agree to cooperate with each other, and at the request of any other party, to execute and deliver any further instruments or documents and to take all such further action as the other party may reasonably request in order to evidence or effectuate the consummation of the transactions contemplated hereby and to otherwise carry out the intent of the parties hereunder.

 

[Signature Page Follows]

 

5

 

 

 

IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above.

 

	
			 

				
			The tru Shrimp Company

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			 

				
			 

			
	
			 

				Name:	
			 

				
			 

			
	
			 

				
			Title:

				
			 

				
			 

			
	 	 	 	 
	 	 	 	 
	 	RNI Aquaculture, LLC	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 
	 	 	 	 
	 	Ralco Nutrition, Inc.	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 
	 	 	 	 
	 	Schwan’s Shared Services, LLC	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 
	 	 	 	 
	 	Eagle Energy, LLC	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

 

Signature Page to Voting Agreement

 

 

 

 

SCHEDULE A

 

INVESTORS

 

	
			Name and Address

				
			Number of Shares Held

			
	 	 
	
			RNI Aquaculture, LLC

				
			6,025,656.78

			
	 	 
	
			Ralco Nutrition, Inc.

				
			1,000,000

			
	 	 
	
			Schwan’s Shared Services, LLC

				
			1,114,827.20

			
	 	 
	
			Eagle Energy, LLC

				
			557,405.17

			

 

1 Assumes full conversion of all issued and outstanding Notes.

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