Document:

Document

Exhibit 10.1

EXECUTION VERSION

COOPERATION AGREEMENT
This Cooperation Agreement, dated as of October 11, 2022 (this “Agreement”) is made by and among Mueller Water Products, Inc., a Delaware corporation (the “Company”), and the natural persons and entities listed on Schedule A hereto (collectively with their respective Affiliates (as defined below), the “Ancora Investors”). The Company and each of the Ancora Investors are collectively herein referred to as the “Parties” and individually as a “Party.”
WHEREAS, the Company and representatives of the Ancora Investors have engaged in discussions regarding various matters concerning the Company, including matters concerning the Board of Directors of the Company (the “Board”);
WHEREAS, on September 15, 2022, Ancora Catalyst Institutional, LP (“Ancora Catalyst Institutional”), on behalf of itself and the Ancora Investors, submitted a letter to the Company (the “Nomination Notice”) nominating a slate of director candidates to be elected to the Board at the annual meeting of stockholders of the Company to be held in 2023 (the “2023 Annual Meeting”);
WHEREAS, as of the date of this Agreement, the Ancora Investors Beneficially Own (as defined below), common stock of the Company, par value $0.01 per share (the “Common Stock”), as set forth on Schedule A hereto;
WHEREAS, the Parties have determined to come to an agreement with respect to the composition of the Board and certain other matters, as provided in this Agreement;
NOW, THEREFORE, in consideration of and reliance upon the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:
1.Board Matters
(a)The Board will, within two business days following the execution and delivery of this Agreement, (i) temporarily increase the size of the Board from 10 to 11 directors, (ii) appoint Brian Slobodow (the “First New Director”) to serve as a director of the Company with a term expiring at the 2023 Annual Meeting, and (iii) appoint Niclas Ytterdahl as an observer to the Board (the “Observer”). At the 2023 Annual Meeting, one director currently serving on the Board will not stand for reelection. No later than five business days after the 2023 Annual Meeting, the Board will appoint the Observer (the “Second New Director” and together with the First New Director, the “Ancora Appointees” and each, an “Ancora Appointee”) to serve as a director of the Company with a term expiring at the annual meeting of stockholders of the Company to be held in 2024 (the “2024 Annual Meeting”).

(b)The Company agrees that during the period commencing on the date hereof until the appointment of the Observer to the Board, the Observer will receive, on a confidential and restricted basis, copies of all documents distributed to the Board, including, without limitation, notice of all meetings of the Board, all written consents executed by the Board, all materials prepared for consideration at any meeting of the Board, and all minutes related to each meeting of the Board occurring on or after the date hereof contemporaneous with their distribution to the Board. The Company will be entitled to withhold any information and exclude the Observer from any Board or Board committee meeting, or any portion thereof, as is reasonably determined by the Company to be necessary to protect the Company’s attorney-client privilege. The Observer will have the right to attend and participate, but not vote, at all meetings of the Board, the Advisory Committee (as defined below) and the Audit Committee of the Board (the “Audit Committee”) during this period (whether such meetings are held in person, telephonically or otherwise). As a condition to the Second New Director (or any Replacement (as defined below) thereof, as applicable) serving as the Observer, the Second New Director (or any Replacement thereof, as applicable) will have delivered an undertaking to the Company as set forth on Exhibit A (the “Observer Undertaking”).
(c)The Company will include the First New Director (or any Replacement thereof, as applicable) in the Company’s slate of 10 nominees for election as directors of the Company at the 2023 Annual Meeting and will use commercially reasonable efforts to cause the election of the First New Director to the Board at the 2023 Annual Meeting (including the Board recommending that the Company’s stockholders vote in favor of the election of the First New Director in the Company’s proxy statement for the 2023 Annual Meeting and otherwise supporting the First New Director for election in a manner no less rigorous and favorable than the manner in which the Company supports its other nominees in the aggregate).
(d)Within five business days following the execution and delivery of this Agreement, the Board and all applicable committees thereof will take such actions as are necessary to form an advisory committee of the Board to be named the Capital Allocation and Operations Committee (the “Advisory Committee”). The purpose of the Advisory Committee is to objectively review and provide oversight of the capital allocation and operations of the Company, including the facility consolidation and foundry construction, and to support and make recommendations to the Board and support management’s review of the Company’s capital allocation, operations and strategy and enhanced transparency and disclosures to stockholders. In accordance with Delaware law and the Company’s Amended and Restated Bylaws (the “Bylaws”), the Board will cause the Advisory Committee to initially be composed of three members: the First New Director and two other members of the Board serving on the Board prior to the execution of this Agreement, who will initially be Mark J. O’Brien (as a non-voting member) and J. Scott Hall, with Messrs. Hall and Slobodow to serve as Co-Chairs of the Advisory Committee, and the Observer will be permitted to participate in the Advisory Committee as provided in Section 1(b) hereof. Promptly following the appointment of the Second New Director to the Board, the Board and all applicable committees thereof will take such actions as are necessary to (i) add the Second New Director to the Advisory Committee, which will then be composed of four members of the Board, and (ii) adjust Mr. O’Brien’s (or his successor’s) status as a member of the Advisory Committee to include full voting rights.
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(e)Promptly following the execution and delivery of this Agreement, the Board and all applicable committees thereof will take such actions as are necessary to add the First New Director to the Nominating and Corporate Governance Committee of the Board. The Board and all applicable committees thereof will also take such actions as are necessary to add, effective upon the appointment of the Second New Director to the Board, the Second New Director to the Board’s Audit Committee, subject to applicable rules of the Securities and Exchange Commission (“SEC”) and the New York Stock Exchange.
(f)If, during the Standstill Period (as defined below), any Ancora Appointee resigns from the Board or is rendered unable (due to death or disability) to, or refuses to, serve on the Board for any reason, and at all times since the date of this Agreement and at such time the Ancora Investors Beneficially Own in the aggregate at least 1% of the Company’s then-outstanding Common Stock (the “Minimum Ownership Level”), then, so long as the Ancora Investors Beneficially Own in the aggregate at least the Minimum Ownership Level, the Ancora Investors shall identify a replacement (who shall qualify as “independent” pursuant to the listing standards of the New York Stock Exchange and the applicable rules and regulations of the SEC) to fill the resulting vacancy caused by such Ancora Appointee’s departure from the Board and any such person will be appointed to the Board within five business days following, and subject to, the good faith review and approval of such person (such approval not to be unreasonably conditioned, withheld or delayed) by the Board after the Nominating and Corporate Governance Committee has made a recommendation to the Board on whether to approve any such person, (any such replacement director, a “Replacement”); provided that a Replacement will not be any Ancora Investor or any Affiliate, Associate or employee of any Ancora Investor. Any Replacement designated pursuant to this Section 1(f) as replacing the First New Director (or any Replacement thereof, as applicable) prior to the 2023 Annual Meeting will stand for election at the 2023 Annual Meeting together with the Company’s other nominees. Any Replacement designated pursuant to this Section 1(f) as replacing the Second New Director (or any Replacement thereof, as applicable) before the initial appointment of the Second New Director to the Board pursuant to Section 1(a), will be appointed to the Board pursuant to Section 1(a), and, before the date of such appointment, will be deemed to be the Observer upon the execution of the Observer Undertaking pursuant to Section 1(b).
(g)Upon a Replacement’s appointment to the Board, such Replacement will be deemed to be an Ancora Appointee for all purposes under this Agreement; provided that if a Replacement of the Second New Director (or any Replacement thereof, as applicable) occurs before the appointment of the Second New Director (or any Replacement thereof, as applicable) to the Board, such Replacement will be deemed to be the Observer upon the execution of the Observer Undertaking pursuant to Section 1(b). 
(h)Concurrent with the execution of this Agreement, Ancora Catalyst Institutional hereby irrevocably withdraws the Nomination Notice.
(i)The Company will hold the 2023 Annual Meeting no later than on February 16, 2023.
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(j)As a condition to each Ancora Appointee (and each Replacement thereof, as applicable) being appointed to the Board, each Ancora Appointee (and each Replacement thereof, as applicable) will have delivered an executed letter to the Company in the form attached hereto as Exhibit B.
(k)Additional Agreements. 
(i)Following the appointment of any Ancora Appointee (and any Replacement, as applicable) to serve as a director of the Company, such person will be governed by the same protections and obligations regarding confidentiality, conflicts of interest, related party transactions, fiduciary duties, codes of conduct, trading and disclosure policies, director resignation policy, and other governance guidelines and policies of the Company as other directors, as amended from time to time (collectively, “Company Policies”), and will have the same rights and benefits, including with respect to insurance, indemnification, compensation and fees, as are applicable to all independent directors of the Company. The Company will make available to any Ancora Appointee copies of all Company Policies not publicly available on the Company’s website. At all times while any Ancora Appointee is serving as a member of the Board or the Observer, (i) such Ancora Appointee shall not disclose to any Ancora Investor or any “Affiliate” or “Associate” (for purposes of this Agreement, as each is defined in Rule 12b-2 promulgated by the SEC pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of each such Ancora Investor or any other person or entity not affiliated with the Company any confidential information of the Company, and (ii) each Ancora Investor shall not, and shall cause their respective Affiliates and Associates not to, seek to obtain confidential information of the Company from any Ancora Appointee (or any Replacement or, for the avoidance of doubt, any Observer). Furthermore, the Ancora Investors agrees that none of the Ancora Appointees may share any information with the Ancora Investors in respect of the Company which they learn in their capacity as a director of the Company, including discussions or matters considered in meetings of the Board or any Board committee, at any time, for any reason, without the Company’s prior consent.
(ii)Notwithstanding anything to the contrary in this Agreement, the rights and privileges set forth in this Agreement shall be personal to the Ancora Investors and may not be transferred or assigned to any individual, corporation, partnership, limited liability company, joint venture, estate, trust, association, organization or other entity of any kind or nature (each, a “Person”), except that the Ancora Investors shall be permitted to transfer or assign this Agreement to their respective Affiliates, provided that any such transfer or assignment shall not relieve any transferring Ancora Investors party of its obligations under this Agreement.
(iii)The Ancora Investors hereby terminate each of the agreements attached to, or referenced in, the Nomination Notice and release any and all such counterparties, including the Ancora Appointees, from their obligations therein (and shall be deemed upon execution of this Agreement to have so terminated and released). The Ancora Investors confirm that there does not exist any other agreement with any of the Ancora 
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Appointees or other candidates for election which relate to the nomination or solicitation of proxies of director candidates for election or other matters to be considered at the 2023 Annual Meeting.
(iv)For purposes of this Agreement, the term “Beneficially Own” or variations thereof will have the meaning set forth in Rule 13d-3 promulgated under the Exchange Act.
2.Standstill and Voting.
(a)Each Ancora Investor agrees that during the Standstill Period, the Ancora Investors will not (and they will not assist or encourage others to) not to, directly or indirectly, in any manner, without prior written approval of the Board: 
(i)take any actions, including acquiring, seeking to acquire or agreeing to acquire (directly or indirectly, whether by market purchases, private purchases, tender or exchange offer, through the acquisition of control of another person, by joining a “group” (within the meaning of Section 13(d)(3) of the Exchange Act), through swap or hedging transactions or otherwise) (A) ownership (Beneficial or otherwise) of any shares of Common Stock or any securities convertible or exchangeable into or exercisable for any shares of Common Stock (including any derivative securities or any other rights decoupled from the underlying securities of the Company) such that the Ancora Investors hold, directly or indirectly, in excess of 5.0% of the then-outstanding shares of Common Stock (the “Maximum Ownership Cap”); or (B) any interest in any indebtedness of the Company; 
(ii)other than in open market sale transactions where the identity of the purchaser is not known, sell, offer, or agree to sell, directly or indirectly, through swap or hedging transactions or otherwise, the securities of the Company or any rights decoupled from the underlying securities held by the Ancora Investors to any person or entity not (A) a party to this Agreement, (B) a member of the Board, (C) an officer of the Company or (D) an Affiliate of the Ancora Investors (any person or entity not set forth in clauses (A)-(D) shall be referred to as a “Third Party”) that would result in such Third Party, together with its Affiliates, owning, controlling or otherwise having any, beneficial or other ownership interest representing in the aggregate in excess of 5.0% of the shares of Common Stock outstanding at such time;
(iii)(A) advise or knowingly encourage or influence any other Person or knowingly assist any third party in so encouraging, assisting or influencing any other Person with respect to the giving or withholding of any proxy, consent or other authority to vote or in conducting any type of referendum (other than such encouragement, advice or influence that is consistent with the Board’s recommendation in connection with such matter) or (B) advise, influence or encourage any Person with respect to, or effect or seek to effect, whether alone or in concert with others, the election, nomination or removal of a director other than as permitted by Section 1;
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(iv)solicit proxies or written consents of stockholders or conduct any other type of referendum (binding or non-binding) (including any “withhold,” “vote no” or similar campaign) with respect to the shares of Common Stock, or from the holders of the shares of Common Stock, or become a “participant” (as such term is defined in Instruction 3 to Item 4 of Schedule 14A promulgated under the Exchange Act) in or knowingly encourage or assist any third party in any “solicitation” of any proxy, consent or other authority (as such terms are defined under the Exchange Act) to vote any shares of Common Stock (other than any encouragement, advice or influence that is consistent with the Board’s recommendation in connection with such matter);
(v)(A) form, join or in any other way participate in any partnership, limited partnership, syndicate or “group” with respect to any shares of Common Stock (other than a “group” solely consisting of the Ancora Investors; provided, however, that an Affiliate of an Ancora Investor will only be permitted to join the “group” following the execution of this Agreement, so long as (x) any such Affiliate agrees to be bound by the terms and conditions of this Agreement and (y) such joining would not result in the Ancora Investors’ “group” Beneficially Owning in the aggregate in excess of the Maximum Ownership Cap), (B) grant any proxy, consent or other authority to vote with respect to any matters to be voted on by the Company’s stockholders (other than to the named proxies included in the Company’s proxy card for any Stockholder Meeting (as defined below) or in accordance with Section 2(b)) or (C) agree to deposit or deposit any shares of Common Stock or any securities convertible or exchangeable into or exercisable for any such shares of Common Stock in any voting trust, agreement or similar arrangement (other than (I) to the named proxies included in the Company’s proxy card for any Stockholder Meeting, (II) customary brokerage accounts, margin accounts, prime brokerage accounts and the like or (III) any agreement solely among the Ancora Investors); 
(vi)separately or in conjunction with any third party in which it is or proposes to be either a principal, partner or financing source or is acting or proposes to act as broker or agent for compensation, propose (publicly or privately, with or without conditions), indicate an interest in or effect, any tender offer or exchange offer, merger, acquisition, reorganization, restructuring, recapitalization or other business combination involving the Company or any of its subsidiaries or the assets or businesses of the Company or any of its subsidiaries or actively encourage or initiate or support any other third party in any such activity; provided, however, that the Ancora Investors shall be permitted to (A) sell or tender their shares of Common Stock, and otherwise receive consideration, pursuant to any such transaction and (B) vote on any such transaction in accordance with Section 2(b);
(vii)(I) nominate, recommend for nomination or give notice of an intent to nominate or recommend for nomination a person for election at any Stockholder Meeting at which the Company’s directors are to be elected or (II) (A) present at any Stockholder Meeting any proposal (pursuant to Rule 14a-8 or otherwise) for consideration for action by the stockholders or (B) call or seek to call, or request the call of, alone or in concert 
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with others, or support another stockholder’s call for, any meeting of stockholders, whether or not such a meeting is permitted by the Company’s organizational documents;
(viii)take any action in support of or make any proposal or request that constitutes: (A) controlling, changing or influencing the Board, management or policies of the Company, including any plans or proposals to change the number or term of directors or the removal of any directors, or to fill any vacancies on the Board; (B) any material change in the capitalization, stock repurchase programs and practices or dividend policy of the Company; (C) any other material change in the Company’s management, business or corporate structure; (D) seeking to have the Company waive or make amendments or modifications to the Company’s charter or Bylaws or any of the Company Policies (each as may be amended from time to time), or other actions that may impede or facilitate the acquisition of control of the Company by any person; (E) causing a class of securities of the Company to be delisted from, or to cease to be authorized to be quoted on, any securities exchange; or (F) causing a class of securities of the Company to become eligible for termination of registration pursuant to Section 12(g)(4) of the Exchange Act, in each case with respect to the foregoing clauses (A) through (F), except as set forth in Section 1;
(ix)make any request for stockholder list materials or other books and records of the Company under Section 220 of the Delaware General Corporation Law or otherwise; provided that if any Ancora Appointee (or any Replacement, as applicable) makes such a request solely in such Ancora Appointee’s capacity as a director of the Company in a manner consistent with his or her fiduciary duties to the Company, such material and other books and records may not be shared with any member of the Ancora Investors, notwithstanding any other provision of this Agreement;
(x)except in the case of fraud by the Company, institute, solicit, join (as a party) or knowingly assist any litigation, arbitration or other proceeding against the Company or any of its current or former directors or officers (including derivative actions), other than (A) litigation by the Ancora Investors to enforce the provisions of this Agreement, (B) counterclaims with respect to any proceeding initiated by, or on behalf of, the Company or its Affiliates against the Ancora Investors or any Ancora Appointee (or any Replacement, as applicable) and (C) the exercise of statutory appraisal rights; provided that the foregoing shall not prevent the Ancora Investors from responding to or complying with a validly issued legal process (and the Company agrees that this Section 2(a)(x) shall apply mutatis mutandis to the Company and its directors, officers, employees and agents (in each case, acting in such capacity) and Affiliates with respect to the Ancora Investors);
(xi)encourage, facilitate, support, participate in or enter into any negotiations, agreements, arrangements or understandings with respect to the taking of any actions by any other Person in connection with the foregoing that is prohibited to be taken by the Ancora Investors (except as set forth in Section 1);
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(xii)request that the Company, directly or indirectly, amend or waive any provision of this Section 2 (included this clause (a)(xii)), other than through non-public communications with the Company that would not reasonably be expected to trigger public disclosure obligations for any of the Parties. 
The foregoing provisions of this Section 2(a) shall not be deemed to prevent any member of the Ancora Investors from (i) communicating privately with the Board or any of the Company’s executive officers regarding any matter, so long as such communications are not intended to, and would not reasonably be expected to, require the Company or any Ancora Investor to make public disclosure with respect thereto, (ii) communicating privately with stockholders of the Company and are not made with an intent to otherwise violate this Section 2(a), Section 3 or any other provision of this Agreement, (iii) identifying potential director candidates to serve on the Board so long as such actions do not create a public disclosure obligation for the Ancora Investors or the Company, are not publicly disclosed by the Ancora Investors and are undertaken on a basis reasonably designed to be confidential; or (iv) making or sending private communications to investors in any member of the Ancora Investors or prospective investors in any member of the Ancora Investors, provided that such statements or communications (1) are based on publicly available information; and (2) are not reasonably expected to be publicly disclosed and are understood by all parties to be confidential communications. Furthermore, for the avoidance of doubt, nothing in this Agreement shall be deemed to restrict in any way the Ancora Appointees (or any Replacement, as applicable) in the exercise of their fiduciary duties under applicable law as directors of the Company.
(b)In respect of any vote or consent of the Company’s stockholders during the Standstill Period (whether at an annual or special stockholder meeting or pursuant to an action by written consent of the stockholders) (each a “Stockholder Meeting”), each of the Ancora Investors shall (i) appear at each such Stockholder Meeting or otherwise cause all Common Stock Beneficially Owned by each Ancora Investor and their respective Affiliates to be counted as present for purposes of establishing a quorum and (ii) vote, or cause to be voted, all shares of Common Stock Beneficially Owned by each Ancora Investor and their respective Affiliates using the Company’s proxy card or voting instruction form (and shall not execute any proxy card or voting instruction form in respect of a Stockholder Meeting other than the proxy card and voting instruction form being solicited by or on behalf of the Board) in accordance with the recommendation of the Board with respect to (x) the election, removal and/or replacement of directors (a “Director Proposal”), (y) the ratification of the appointment of the Company’s independent registered public accounting firm and (z) any other proposal submitted to the Company’s stockholders at a Stockholder Meeting, in each case as such recommendation of the Board is set forth in the applicable definitive proxy statement filed in respect thereof; provided, however, that in the event Institutional Shareholder Services Inc. (“ISS”) and Glass Lewis & Co., LLC (“Glass Lewis”) make a recommendation that differs from the recommendation of the Board with respect to any proposal submitted to the stockholders at any Stockholder Meeting (other than Director Proposals), the Ancora Investors are permitted to vote the shares of Common Stock Beneficially Owned by them at such Stockholder Meeting in accordance with the ISS and Glass Lewis recommendation; provided, further, that the Ancora Investors shall be entitled to vote the shares of Common Stock Beneficially Owned by them in their sole discretion 
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with respect to (A) any publicly announced proposal relating to any transaction pursuant to which any person is or becomes a Beneficial Owner, directly or indirectly, of securities of the Company representing more than 50% of the Company’s then-outstanding equity interests and voting power, a merger, stock-for-stock transaction, spin-off, acquisition, disposition of all or substantially all of the assets of the Company and its subsidiaries or other business combination involving the Company, (B) any financing, recapitalization, restructuring, share issuance or similar extraordinary transaction, (C) the implementation of takeover defenses not in existence as of the date of this Agreement, in each case, that requires a vote of the Company’s stockholders. 
(c)The “Standstill Period” shall begin upon the execution and delivery of this Agreement and shall end upon the earlier of (i) 30 days prior to the notice deadline under the Bylaws for the submission of stockholder director nominations for the 2024 Annual Meeting and (ii) 110 days prior to the first anniversary of the date on which the Company first mailed its proxy materials for the 2023 Annual Meeting. The Company shall give notice to the Ancora Investors whether the Board intends to renominate the Ancora Appointees at least 30 days prior to the end of the Standstill Period. If the Board irrevocably offers in such notice to renominate the Ancora Appointees and the Ancora Investors accept such renomination prior to the end of the Standstill Period, then the Standstill Period shall be automatically extended until the earlier of (A) 30 days prior to the notice deadline under the Bylaws for the submission of stockholder director nominations for the annual meeting of stockholders of the Company to be held in 2025 and (B) 110 days prior to the first anniversary of the date on which the Company first mailed its proxy materials for the 2024 Annual Meeting. If the Ancora Investors do not accept such renomination prior to the end of the Standstill Period, then the Standstill Period shall terminate as scheduled and the Ancora Appointees shall resign from the Board pursuant to the letter executed pursuant to Section 1(j) upon delivery of any notice of intent to nominate directors for election at the 2024 Annual Meeting.
(d)Each member of the Ancora Investors shall comply, and shall cause each of its respective Affiliates and Representatives to comply, with the terms of this Agreement and shall be responsible for any breach of this Agreement by any such Affiliate or Representative. A breach of this Agreement by an Affiliate or Representative of any Ancora Investor, if such Affiliate or Representative is not a party hereto, shall be deemed to occur if such Affiliate or Representative engages in conduct that would constitute a breach of this Agreement if such Affiliate or Representative were a party hereto to the same extent as an Ancora Investor.
3.Mutual Non-Disparagement. During the Standstill Period, (a) each Ancora Investor shall not, and shall cause their respective directors, officers, partners, members, employees, agents (in each case, acting in such capacity) and Affiliates not to make, or cause to be made, by press release or other public statement to members of the press or media, any statement or announcement that constitutes an ad hominem attack on, or otherwise disparages, the Company, its subsidiaries or their respective officers and directors (or any person who has served as an officer or director of the Company in the past) and (b) the Company shall not, and shall cause its directors, officers, partners, members, employees, agents (in each case, acting in such capacity) and Affiliates not to, make, or cause to be made, by press release or other public statement to members of the press or media, any statement or announcement that constitutes an ad hominem attack on, or otherwise disparages, the Ancora Investors, their respective Affiliates 
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or their respective directors and officers (or any person who has served as an officer or director of an Ancora Investor in the past). The foregoing shall not prevent the making of any factual statement including in any compelled testimony or production of information, either by legal process, subpoena, or as part of a response to a request for information from any governmental authority with purported jurisdiction over the party from whom information is sought.
4.Director Information. As a condition to the Ancora Appointees’ (or any Replacement’s, as applicable) appointment to the Board (or to act as the Observer) and any subsequent nomination for election as a director at an annual meeting of the stockholders of the Company, the Ancora Appointees (or any Replacement, as applicable) will provide any information the Company reasonably requires, including information required to be disclosed in a proxy statement or other filing under applicable law, stock exchange rules or listing standards, information in connection with assessing eligibility, independence and other criteria applicable to directors or satisfying compliance and legal obligations, and will consent to appropriate background checks, to the extent, in each case, consistent with the information and background checks required by the Company in accordance with past practice with respect to other members of the Board. If, following the completion of the Company’s initial background review process, the Board learns that any Ancora Appointee or any Replacement, as the case may be, has committed, been indicted or charged with, or made a plea of nolo contendre to a felony or a misdemeanor involving moral turpitude, deceit, dishonesty or fraud, then the Board may request that such Ancora Appointee (or any Replacement, as applicable), resign from the Board (or, as applicable, from serving as the Observer) and, in such case, the resulting vacancy on the Board shall be filled in the manner set forth in Section 1(f) of this Agreement.
5.Disclosure of this Agreement. Promptly following the execution of this Agreement, the Company and the Ancora Investors shall jointly issue a press release (the “Press Release”) announcing this Agreement, substantially in the form attached hereto as Exhibit C. Prior to the issuance of the Press Release, neither the Company nor the Ancora Investors shall issue any press release or public announcement regarding this Agreement or take any action that would require public disclosure thereof without the prior written consent of the other Party. During the period commencing on the date hereof and ending on the date this Agreement terminates in accordance with Section 16, no Party shall make any public announcement or statement that is inconsistent with or contrary to the statements made in the Press Release, except to the extent required by law or the rules and regulations under any stock exchange or governmental entity with the prior written consent of the Ancora Investors and the Company, as applicable, and otherwise in accordance with this Agreement. Notwithstanding the foregoing, the Ancora Investors acknowledges and agrees that the Company may file this Agreement as an exhibit to a Current Report on Form 8-K within four business days of the execution of this Agreement, provided that the Company shall first preview such Current Report with the Ancora Investors in advance of making such filing and consider comments by the Ancora Investors.
6.Representations and Warranties. 
(a)The Company represents and warrants to the Ancora Investors that: (i) the Company has the requisite corporate 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 
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it hereto and thereto; (ii) 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 (iii) the execution, delivery and performance of this Agreement by the Company does not and will not (A) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to the Company or (B) 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.
(b)Each of the Ancora Investors jointly and severally represents and warrants to the Company that: (i) as of the date of this Agreement, such Ancora Investor Beneficially Owns, directly or indirectly, only the number of Common Stock as described opposite its name on Schedule A to this Agreement and each such schedule includes all Affiliates of such Ancora Investor that own any securities of the Company Beneficially or of record and reflects all Common Stock in which such Ancora Investor has any interest or right to acquire, whether through derivative securities, voting agreements or otherwise; (ii) the other persons and entities listed on Schedule A hereto are all of the Affiliates of Ancora that Beneficially Own, directly or indirectly, Common Stock; (iii) as of the date of this Agreement, other than as disclosed herein, each such Ancora Investor does not currently have, and does not currently have any right to acquire, 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 controlled 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, 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); (iv) this Agreement has been duly and validly authorized, executed and delivered by such Ancora Investor, and constitutes a valid and binding obligation and agreement of such Ancora Investor, enforceable against such Ancora Investor 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; (v) such member of the Ancora Investors has the authority to execute this Agreement on behalf of itself and the applicable member of the Ancora Investors associated with that signatory’s name, and to bind such member of the Ancora Investors to the terms of this Agreement, including by virtue of having sole voting and dispositive power over such Ancora Investor’s Common Stock; (vi) each Ancora Investor shall cause each of its respective Affiliates to comply with the terms of this Agreement, and (vii) the execution, delivery and performance of this Agreement by such Ancora Investor does not and will not 
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violate or conflict with (A) any law, rule, regulation, order, judgment or decree applicable to it or the Ancora Appointees, or (B) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could become a 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 such Ancora Investor is a party or by which it is bound. Each Ancora Investor represents and warrants that it has no voting commitments (written or oral) with any of the Ancora Appointees as of the date of this Agreement and agrees that it shall not compensate or otherwise incentivize any of the Ancora Appointees for their service or action on the Board or enter into voting commitments, (written or oral) relating to the Company with any director or officer of the Company. Except as otherwise disclosed in the Nomination Notice, each Ancora Investor further represents and warrants that it does not have, directly or indirectly, any agreements, arrangements or understandings with any person (other than their own representatives) with respect to its investment in the Company, any strategic, capital, management or other operational matter with respect to the Company, any potential transaction involving the Company, or the acquisition, voting or disposition of any securities of the Company. Except as otherwise disclosed in the Nomination Notice, each Ancora Investor further represents and warrants that no Ancora Investor has any control or influence over any compensation or other monetary payments to be received by any of the Ancora Appointees in connection with their service as a director of the Company and that none of the Ancora Investors is aware of any facts or circumstances that will prevent any of the Ancora Appointees from exercising independent judgment with respect to any matter involving the Company or items that may come before the Board or any of its committees. Each Ancora Investor further represents and warrants that the information previously provided to the Company is true, accurate and complete in all material respects.
7.Authority. Each member of the Ancora Investors hereby appoints Fredrick DiSanto as the sole member of the Ancora Investors entitled to exercise the collective rights and remedies of the Ancora Investors hereunder, which appointee may be changed from time to time upon written notice to and approval from the Company (such approval not to be unreasonably withheld or delayed).
8.Expenses. The Company shall reimburse the Ancora Investors for their reasonable, documented out-of-pocket fees and expenses (including legal expenses) incurred in connection with the negotiation and execution of this Agreement, provided that such reimbursement shall not exceed $215,000 in the aggregate.
9.Amendment in Writing. This Agreement and each of its terms may only be amended, waived, supplemented or modified in a writing signed by the Parties hereto.
10.Governing Law; Venue; Waiver of Jury Trial; Jurisdiction. Each Party (a) irrevocably and unconditionally consents to submit itself to the exclusive personal jurisdiction of the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware (or, if the Delaware Court of Chancery declines to accept jurisdiction over a particular matter, any federal court within the State of Delaware) (the “Chosen Courts”) in the event any dispute arises out of or relates to this Agreement or the transactions contemplated by this 
12

Agreement, (b) agrees that it shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such Chosen Court, (c) agrees that it shall not bring any action relating to this Agreement or the transactions contemplated by this Agreement in any court other than the Chosen Courts, (d) agrees to waive any bonding requirement under any applicable law, in the case any other Party seeks to enforce the terms by way of equitable relief, and (e) irrevocably consents to service of process by a reputable overnight delivery service, signature requested, to the address of such Party’s principal place of business or as otherwise provided by applicable law. EACH PARTY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. THIS AGREEMENT SHALL BE GOVERNED IN ALL RESPECTS, INCLUDING WITHOUT LIMITATION VALIDITY, INTERPRETATION AND EFFECT, BY THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO CONTRACTS EXECUTED AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES OF SUCH STATE.
11.Specific Performance. The Parties expressly agree that an actual or threatened breach of this Agreement by any Party will give rise to irreparable injury that cannot adequately be compensated by damages. Accordingly, in addition to any other remedy to which it may be entitled, each Party shall be entitled to a temporary restraining order or injunctive relief to prevent a breach of the provisions of this Agreement or to secure specific enforcement of its terms and provisions, and each Party agrees it will not take any action, directly or indirectly, in opposition to another Party seeking relief. Each of the Parties agrees to waive any requirement for the security or posting of any bond in connection with any such relief.
12.Severability. If at any time subsequent to the date hereof, any provision of this Agreement shall be held by any court of competent jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and effect, but the illegality or unenforceability of such provision shall have no effect upon the legality or enforceability of any other provision of this Agreement.
13.Non-Waiver. No failure or delay by a Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right, power or privilege hereunder.
14.Entire Agreement. This Agreement constitutes the full, complete and entire understanding, agreement, and arrangement of and between the Parties with respect to the subject matter hereof and supersedes any and all prior oral and written understandings, agreements and arrangements between them. There are no other agreements, covenants, promises or arrangements between the Parties other than those set forth in this Agreement (including the attachments hereto).
15.Notices. All notices and other communications which are required or permitted hereunder shall be in writing and shall be deemed validly given, made or served, when delivered in person or sent by overnight courier, when actually received during normal business hours, or 
13

on the date of dispatch by the sender thereof when sent by e-mail (to the extent that no “bounce back”, “out of office” or similar message indicating non-delivery is received with respect thereto), if such dispatch is made by 5:00 p.m. New York City time on a business day or, if made after 5:00 p.m. New York City time on a business day, such notice or other communication shall be deemed to have been received on the next succeeding business day, at the address specified in this Section 15:
If to the Company:  
						
	Mueller Water Products, Inc.
	1200 Abernathy Road N.E., Suite 1200
	Atlanta, Georgia 30328
	Attn:	Steven S. Heinrichs
		Chief Legal Officer, Executive Vice President, General Counsel, and Corporate Secretary
	Email:	sheinrichs@muellerwp.com
		
	With a copy (which shall not constitute notice) to:

						
	Kirkland & Ellis LLP
	601 Lexington Avenue
	New York, New York 10022
	Attn:	David B. Feirstein, P.C.
		Shaun J. Mathew, P.C.
	Email:	David.Feirstein@kirkland.com
		Shaun.Mathew@kirkland.com
	Fax:	(212) 446-4900

If to Ancora Catalyst Institutional or the Ancora Investors:  
						
	Ancora Catalyst Institutional, LP
	c/o Ancora Holdings Group, LLC
	6060 Parkland Boulevard, Suite 200
	Cleveland, Ohio 44124
	Attn:	Jim Chadwick
	Email:	jchadwick@ancora.net
		
	With a copy (which shall not constitute notice) to:

14

						
	Olshan Frome Wolosky LLP
	1325 Avenue of the Americas
	New York, New York 10019 
	Attn:	Sebastian Alsheimer
		Steve Wolosky
	Email:	salsheimer@olshanlaw.com
		swolosky@olshanlaw.com

16.Termination. This Agreement shall cease, terminate and have no further force and effect upon the expiration of the last day of the Standstill Period as set forth in Section 2(c), unless earlier terminated by mutual written agreement of the Parties or as otherwise set forth herein; provided, that Sections 9 through 20 shall survive the termination of this Agreement.
17.Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties named herein and their respective successors and permitted assigns. No Party may assign or otherwise transfer either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the other Parties; provided, however, that the members of the Ancora Investors may assign this Agreement to the extent set forth in Section 1(k)(ii). Any purported transfer requiring consent without such consent shall be void.
18.No Third-Party Beneficiaries. This Agreement is solely for the benefit of the Parties and is not enforceable by any other Person.
19.Interpretation; Construction. Each of the Parties acknowledges that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution of this Agreement, and that it has executed this Agreement with the advice of such counsel. Each Party and its counsel cooperated and participated in the drafting and preparation of this Agreement, and any and all drafts relating thereto exchanged among the Parties shall be deemed the work product of all of the Parties and may not be construed against any Party by reason of its drafting or preparation. Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this Agreement against any Party that drafted or prepared it is of no application and is hereby expressly waived by each of the Parties, and any controversy over interpretations of this Agreement shall be decided without regard to events of drafting or preparation. When a reference is made in this Agreement to a Section, such reference shall be to a Section of this Agreement, unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,” “includes” and “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The word “will” shall be construed to have the same meaning as the word “shall.” The words “dates hereof” will refer to the date of this Agreement. The word “or” is not exclusive. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms. Any agreement, instrument, law, rule or statute defined or 
15

referred to herein means, unless otherwise indicated, such agreement, instrument, law, rule or statute as from time to time amended, modified or supplemented.
20.Counterparts. This Agreement may be executed in two 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 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.

[The remainder of this page is left blank intentionally]
16

IN WITNESS WHEREOF, the Parties hereto have each executed this Agreement on the date first set forth above.
															
			THE COMPANY:
		 	
			MUELLER WATER PRODUCTS, INC.
		 	 	 
		 	By:	/s/ Steven S. Heinrichs
		 	 	Name:	Steven S. Heinrichs
		 	 	Title:	Chief Legal Officer, EVP, General Counsel, and Corporate Secretary

[Signature Page to Cooperation Agreement]

						
		THE ANCORA INVESTORS:

		

												
		Ancora Catalyst Institutional, LP
Ancora Catalyst, LP
Ancora Merlin Institutional, LP
Ancora Merlin, LP

		
		By:	Ancora Alternatives LLC,
its Investment Advisor and General Partner

		By:	Ancora Holdings Group, LLC,
its Sole Member

		By:	/s/ Fredrick D. DiSanto
			Name:	Fredrick D. DiSanto
			Title:	Chairman and Chief Executive Officer

												
		Ancora Alternatives LLC

By: Ancora Holdings Group, LLC,
its Sole Member

		By:	/s/ Fredrick D. DiSanto
			Name:	Fredrick D. DiSanto
			Title:	Chairman and Chief Executive Officer

												
		Ancora Advisors, LLC

By: The Ancora Group, LLC,
its Sole Member

By: Ancora Holdings Group, LLC,
its Sole Member

		By:	/s/ Fredrick D. DiSanto
			Name:	Fredrick D. DiSanto
			Title:	Chairman and Chief Executive Officer

[Signature Page to Cooperation Agreement]

												
		The Ancora Group, LLC

By: Ancora Holdings Group, LLC,
its Sole Member

		By:	/s/ Fredrick D. DiSanto
			Name:	Fredrick D. DiSanto
			Title:	Chairman and Chief Executive Officer

												
		Ancora Family Wealth Advisors, LLC

By: Inverness Holdings LLC,
its Sole Member

By: Ancora Holdings Group, LLC,
its Sole Member

		By:	/s/ Fredrick D. DiSanto
			Name:	Fredrick D. DiSanto
			Title:	Chairman and Chief Executive Officer
		

Inverness Holdings LLC

By: Ancora Holdings Group, LLC,
its Sole Member

		By:	/s/ Fredrick D. DiSanto
			Name:	Fredrick D. DiSanto
			Title:	Chairman and Chief Executive Officer

												
		Ancora Holdings Group, LLC

		By:	/s/ Fredrick D. DiSanto
			Name:	Fredrick D. DiSanto
			Title:	Chairman and Chief Executive Officer

						
		/s/ Fredrick D. DiSanto
		Fredrick D. DiSanto

[Signature Page to Cooperation Agreement]

SCHEDULE A
THE ANCORA INVESTORS
									
			
	Investor Name
		Beneficial Ownership

	Ancora Catalyst Institutional, LP
		Ancora Catalyst Institutional, LP Beneficially Owns 1,090,404 shares of Common Stock

	Ancora Merlin Institutional, LP
		Ancora Merlin Institutional, LP Beneficially Owns 1,092,673 shares of Common Stock

	Ancora Catalyst, LP
		Ancora Catalyst, LP Beneficially Owns 105,156 shares of Common Stock

	Ancora Merlin, LP
		Ancora Merlin, LP Beneficially Owns 102,884 shares of Common Stock

	Ancora Alternatives LLC
		Ancora Alternatives LLC Beneficially Owns 3,287,948 shares of Common Stock

	Ancora Advisors, LLC
		Ancora Advisors, LLC Beneficially Owns 33,500 shares of Common Stock

	Ancora Family Wealth Advisors, LLC
		Ancora Family Wealth Advisors, LLC Beneficially Owns 8,500 shares of Common Stock

	The Ancora Group LLC
		The Ancora Group LLC Beneficially Owns 33,500 shares of Common Stock

	Inverness Holdings LLC
		Inverness Holdings LLC Beneficially Owns 8,500 shares of Common Stock

	Ancora Holdings Group, LLC
		Ancora Holdings Group, LLC Beneficially Owns 3,329,948 shares of Common Stock

	Fredrick D. DiSanto
		Fredrick D. DiSanto Beneficially Owns 3,329,948 shares of Common Stock

		

[Schedule A to Cooperation Agreement]

EXHIBIT A
FORM OF OBSERVER UNDERTAKING

[—], 2022

Board of Directors
Mueller Water Products, Inc.
1200 Abernathy Road N.E., Suite 1200
Atlanta, Georgia 30328

RE:    Observer Undertaking

Ladies and Gentlemen:

Reference is made to that certain Cooperation Agreement (the “Agreement”), dated as of October 11, 2022, by and among Mueller Water Products, Inc., a Delaware corporation (the “Company”), and the natural persons and entities listed on Schedule A thereto (collectively with their respective Affiliates, the “Ancora Investors”). Capitalized terms used herein but not defined shall have the meaning set forth in the Agreement.

I hereby irrevocably undertake that, while I serve as an Observer, I will be governed by, and will comply with, the same protections and obligations regarding confidentiality, conflicts of interests, related party transactions, codes of conduct, trading and disclosure policies, director resignation policy, and other governance guidelines and policies of the Company as current directors, as amended from time to time (collectively, for purposes of this Observer Undertaking, the “Company Policies”). Furthermore, I irrevocably undertake that I will not share any information with the Ancora Investors or any other person in respect of the Company which I learn in my capacity as an Observer, including discussions or matters considered in meetings of the Board or any Board committee, at any time, for any reason, without the Company’s prior consent.

If appointed as an Observer, I hereby irrevocably offer to resign from my position as the Observer, effective immediately upon notice from the Company that I have materially breached this Observer Undertaking (including a material breach of any of the Company Policies) or the Agreement; provided that I need not offer to resign if any such breach is capable of being cured and I have cured such breach within 10 calendar days following written notice of such breach from the Company. It shall be in the Board’s sole discretion whether to accept or reject such resignation. Further, I hereby acknowledge that I will no longer be an Observer upon my appointment to serve as a director of the Company.

Very Truly Yours,

__________________________

A-1

EXHIBIT B
FORM OF DIRECTOR RESIGNATION LETTER

[—], 202[—]

Board of Directors
Mueller Water Products, Inc.
1200 Abernathy Road N.E., Suite 1200
Atlanta, Georgia 30328

RE:    Irrevocable, Conditional Director Resignation Letter

Ladies and Gentlemen:

Reference is made to that certain Cooperation Agreement (the “Agreement”), dated as of October 11, 2022, by and among Mueller Water Products, Inc., a Delaware corporation (the “Company”), and the natural persons and entities listed on Schedule A thereto (collectively with their respective Affiliates, the “Ancora Investors”). Capitalized terms used herein but not defined shall have the meaning set forth in the Agreement. 

I hereby irrevocably offer to resign from my position as a director of the Board, and from any and all committees of the Board on which I serve, effective immediately upon the delivery of a notice of an intent to nominate directors at the 2024 Annual Meeting made by, or on behalf of, an Ancora Investor. It shall be in the Board’s sole discretion whether to accept or reject such resignation.

Very Truly Yours,

__________________________

B-1

EXHIBIT C
FORM OF PRESS RELEASE

MUELLER WATER PRODUCTS ANNOUNCES NEW DIRECTORS AND CORPORATE GOVERNANCE INITIATIVES 

Enters Into Cooperation Agreement with Stockholder Ancora

Adds Two New Independent Members – Brian Slobodow and Niclas Ytterdahl – to the Board

Creates Capital Allocation and Operations Committee 

ATLANTA, October 13, 2022 – Mueller Water Products, Inc. (NYSE: MWA) (“Mueller” or the “Company”) today announced that it has entered into a cooperation agreement with Ancora Holdings Group, LLC and its affiliates (“Ancora”) and announced several governance changes, including the addition of two new directors.  The Company also announced an accelerated process to continue its refreshment of the Board of Directors (the “Board”) over the next three years.  

New Independent Directors

The Company announced the appointment of Brian Slobodow and Niclas Ytterdahl to the Board. Mr. Slobodow will join the Board, effective immediately, and Mr. Ytterdahl will act as a non-voting observer of the Board until he is appointed to the Board following the 2023 Annual Meeting of Stockholders (the “Annual Meeting”).

Upon joining the Board, Mr. Slobodow is expected to serve on the Nominating and Corporate Governance Committee and Mr. Ytterdahl is expected to serve on the Audit Committee.

Under the terms of the cooperation agreement, Ancora has agreed to customary standstill, voting commitments and other provisions. A complete copy of the cooperation agreement will be filed on Form 8-K with the U.S. Securities and Exchange Commission.

Creation of New Capital Allocation and Operations Committee

The Board is also forming a Capital Allocation and Operations Committee (the “Committee”) to focus on capital allocation and operational excellence. The Committee will be co-chaired by President and Chief Executive Officer Scott Hall and Mr. Slobodow, and will include Chairman Mark O’Brien. Mr. Ytterdahl will initially be an observer of the Committee and then assume full membership upon his appointment to the Board. 

Proactive and Accelerated Board Refresh

The Company also announced that it will accelerate the refreshment of the Board by adding several new directors with fresh perspectives in the near term. This plan is intended to further align the Board’s experience and skills with the Company’s strategic direction. As part of this plan, following this year’s Annual Meeting, each member of the Board who has served for more than 10 years will depart during the 
C-1

next three years, with no more than three directors departing in any one year. As of the 2024 Annual Meeting of Stockholders, the size of the refreshed Board will be set at 10 directors. 

Mark O’Brien, Chairman of the Board, commented:

“Today accelerates a plan to refresh the Mueller Board, which builds on our commitment to developing a strong track record of diversity and inclusion. The Board continues to work towards ensuring that its directors have the right mix of skills, experience and diversity to oversee and guide Mueller’s execution of its long-term strategy, while also upholding its commitment to best practices in corporate governance.”

Mr. O’Brien continued:

“Both Brian and Niclas bring valuable operating and supply chain management experience to our already diverse Board. We are confident that Mueller and its stockholders will benefit greatly from their perspectives and insights, and their support of the Company’s efforts to enhance shareholder value.”

Scott Hall, President and Chief Executive Officer, added:

“Now is an important time for Mueller, with a record backlog and healthy demand. Our teams remain focused on executing on our operational improvements and delivering the benefits from our ongoing capital investments that will further position our product portfolio to capitalize on favorable market trends.”

Fredrick D. DiSanto, Chairman and Chief Executive Officer of Ancora, concluded: 

“We appreciate the productive private engagement we have had with Mueller’s Board and leadership team, and are pleased to reach an agreement that will meaningfully benefit all stockholders and stakeholders. Mueller is a strong, high-potential business with a leading presence in the transmission, distribution and measurement of water in North America. We look forward to seeing our designees add fresh expertise to the Board and support long-term value creation.” 

Evercore is serving as financial advisor to Mueller Water Products and Kirkland & Ellis LLP is serving as Mueller Water Products’ legal counsel. Olshan Frome Wolosky LLP is serving as Ancora’s legal counsel. 

New Director Biographies 

•Brian Slobodow

Brian Slobodow is currently an Operating Partner of Operational Resource Group (“ORG”) at HGGC, a leading middle-market private equity firm. Mr. Slobodow brings over 30 years of operations expertise to the board, including knowledge in the areas of supply chain and procurement issues. Prior to ORG, Mr. Slobodow served as an Operating Executive at Golden Gate Capital, where he gained extensive experience on management teams, serving as the Chief Operating Officer of Atrium, Chief Executive Officer U.S. Silica Company and President and Chief Operating Officer of Neways International, all of which are current or former Golden Gate Capital portfolio companies. Prior to joining Golden Gate Capital, Mr. Slobodow held multiple leadership positions within Johnson & Johnson Consumer Products and was a Principal at A.T. Kearney. He has previously served as a director on the boards of ANGUS Chemical Company, Cole-Parmer and Springs Window Fashions. Mr. Slobodow holds a Bachelor of Science in 
C-2

Industrial and Manufacturing Engineering and an MBA from the MIT Sloan School of Management.

•Niclas Ytterdahl

Niclas Ytterdahl is the Chief Operating Officer at Industrial Service Solutions (“ISS”). Mr. Ytterdahl brings over 25 years of operations expertise to Mueller, also including knowledge in the areas of supply chain and procurement. Prior to joining ISS, Mr. Ytterdahl was the President at Dover Vehicle Service Group and the Chief Supply Chain Officer at the AES Corporation. Mr. Ytterdahl has also held multiple leadership positions within Thermo Fisher Scientific and began his career consulting for Accenture and A.T. Kearney. He currently serves as the Portfolio Board Director for Dubin Clark & Company, Inc. and is a Board Member for Euro Motorparts Group, which is a Dubin Clark portfolio company. Mr. Ytterdahl holds a Master of Science in Engineering Physics from Chalmers University of Technology (Ecole Polytechnique Federale de Lausanne) and a MS/MBA in Strategy, Corporate Finance and Operations from the MIT Sloan School of Management. 

About Mueller Water Products, Inc.

Mueller Water Products, Inc. is a leading manufacturer and marketer of products and services used in the transmission, distribution and measurement of water in North America. Our broad product and service portfolio includes engineered valves, fire hydrants, pipe connection and repair products, metering products, leak detection, pipe condition assessment, pressure management products, and software technology that provides critical water system data. We help municipalities increase operational efficiencies, improve customer service and prioritize capital spending, demonstrating why Mueller Water Products is Where Intelligence Meets Infrastructure®. Visit us at www.muellerwaterproducts.com.

Mueller refers to one or more of Mueller Water Products, Inc. (MWP), a Delaware corporation, and its subsidiaries. MWP and each of its subsidiaries are legally separate and independent entities when providing products and services. MWP does not provide products or services to third parties. MWP and each of its subsidiaries are liable only for their own acts and omissions and not those of each other. Mueller brands include Mueller®, Echologics®, Hydro Gate®, Hydro-Guard®, HYMAX®, i2O®, Jones®, Krausz®, Mi.Net®, Milliken®, Pratt®, Pratt Industrial®, SentryxTM, Singer®, and U.S. Pipe Valve & Hydrant.  Please see muellerwp.com/brands to learn more.

Forward-Looking Statements

This press release contains certain statements that may be deemed “forward-looking statements” within the meaning of the federal securities laws. All statements that address activities, events or developments that the Company intends, expects, plans, projects, believes or anticipates will or may occur in the future are forward-looking statements, including, without limitation, statements regarding outlooks, projections, forecasts, expectations, commitments, trend descriptions and the ability to capitalize on trends, value creation, Board and committee composition plans, long-term strategies and the execution or acceleration thereof, operational improvements and excellence, the benefits of capital investments, financial or operating performance including improving sales growth and driving increased margins, capital allocation and growth strategy plans, positioning the Company’s product portfolio and the demand for the Company’s products. Forward-looking statements are based on certain assumptions and assessments made by the Company in light of the Company’s experience and perception of historical trends, current conditions and expected future developments. Actual results and the timing of events may differ 
C-3

materially from those contemplated by the forward-looking statements due to a number of factors, including, without limitation, the factors that are described in the section entitled “RISK FACTORS” in Item 1A of the Company’s most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 19, 2021, and later filings with the SEC on Form 10-Q. Forward-looking statements do not guarantee future performance and are only as of the date they are made. The Company undertakes no duty to update its forward-looking statements except as required by law. Undue reliance should not be placed on any forward-looking statements. You are advised to review any further disclosures the Company makes on related subjects in subsequent Forms 10-K, 10-Q, 8-K and other reports filed with the SEC.

Contacts

For Mueller Water:

Investor Relations Contact 
Whit Kincaid
770-206-4116
wkincaid@muellerwp.com 

Media Contact 
Robin Keegan
770-206-4152
rkeegan@muellerwp.com 

For Ancora:

Longacre Square Partners
Greg Marose, 201-936-4126
gmarose@longacresquare.com 

C-4Exhibit
10.1

 

PROGRESSIVE
CARE INC.

STOCK OPTION AGREEMENT

 

This
STOCK OPTION AGREEMENT (the “Option Agreement”), effective as of September 13, 2022 (the “Grant
Date”), is between Progressive Care Inc., a Delaware corporation (the “Company”), and Charles
M. Fernandez (the “Optionee”), the Chairman of the Company’s Board of Directors.

 

WHEREAS,
the Company desires to give the Optionee the opportunity to purchase up to five percent (5%) of the issued and outstanding shares of
the Company’s common stock, par value $0.0001 per share (“Common Shares”).

 

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

 

AGREEMENT

 

1. Grant
of Option. The Company hereby grants to the Optionee the right and option (the “Option”) to purchase up
to five percent of the Company’s Common Shares. The Option is in all respects limited and conditioned as hereinafter provided.

 

2.
Exercise Price. The exercise price of the Common Shares covered by this Option shall be $0.022 per share, subject
to adjustment hereunder (the “Exercise Price”).

 

3. Term.
Unless earlier terminated pursuant to any provision of this Option Agreement, this Option shall expire ten (10) years from the Grant
Date (the “Expiration Date”). This Option shall not be exercisable on or after the Expiration Date.

 

4. Vesting
and Exercise of Option. The Option shall vest as follows:

 

	Incremental
    Number of Common

    Shares Vesting Under Option
	 	Vesting
    Date

	12,576,222
    Common Shares1	 	Fully
    vested upon Grant Date
	6,288,111
    Common Shares2	 	The
    first Trading Day following the date on which the Company’s market capitalization is $50 million or more for five consecutive
    Trading Days. 
	6,288,111
    Common Shares2  	 	The
    first Trading Day following the date on which the Company’s market capitalization is $100 million or more for five consecutive
    Trading Days.
	6,288,111
    Common Shares2  	 	The
    first Trading Day following the date on which the Company’s market capitalization is $200 million or more for five consecutive
    Trading Days.

 

 

1
Amount to be equal to 2% of the fully diluted Common Shares outstanding as of the Grant Date.

2 Amount to be equal to 1% of the fully diluted Common Shares
outstanding as of the Grant Date.

 

    	1

     

    

 

The
Option shall remain exercisable until it is exercised or until it terminates and shall not be forfeited or cancelled. All Options shall
vest immediately upon a Change in Control.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Shares are listed or quoted for trading on
the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the
New York Stock Exchange, OTCQB or OTCQX as applicable; if the Common Shares are not then listed or quoted for trading on OTCQB or OTCQX
and if prices for the Common Shares are then reported on the Pink Open Market (or a similar organization or agency succeeding to its
functions of reporting prices).

 

5. Method
of Exercising Option.

 

(a)
Subject to the terms and conditions of this Option Agreement, the Option may be exercised by written notice to the Company at its principal
office. The form of such notice is attached hereto and shall state the election to exercise the Option and the number of whole shares
with respect to which it is being exercised; shall be signed by the person or persons so exercising the Option; and shall be accompanied
by payment of the full exercise price of such shares. Only full shares will be issued.

 

(b) The
exercise price shall be paid to the Company

 

(i) in
Common Shares newly acquired by the Optionee upon cashless exercise of the Option: or

 

(ii) at
the sole option of the Optionee:

 

(1) in
cash, or by certified check, bank draft, or postal or express money order;

 

(2) through
the delivery of Common Shares previously acquired by the Optionee; or

 

(3) by
delivering a properly executed notice of exercise of the Option to the Company and a broker, with irrevocable instructions to the broker
promptly to deliver to the Company the amount necessary to pay the exercise price of the Option;

 

(4) in
any combination of (i), (ii)(1), (ii)(2) or (ii)(3) above.

 

In
the event the exercise price is paid, in whole or in part, with Common Shares, the Company shall issue to the Optionee such number of
fully paid and non-assessable Common Shares as are computed using the following formula: X = Y(A-B)/A where: X = the number of Shares
to be issued to the Optionee; Y = the number of Shares with respect to which the Option is being exercised (inclusive of the Shares surrendered
to the Company in payment of the aggregate exercise price); A = the Fair Market Value of one Share; and B = the exercise price, in this
case $0.022 per share.

 

    	2

     

    

 

Upon
receipt of notice of exercise and payment, the Company shall deliver a book entry confirmation representing the Common Shares with respect
to which the Option is so exercised. The Optionee shall obtain the rights of a shareholder upon receipt of such confirmation.

 

Common
Shares purchased upon exercise of the Option shall be registered in the name of the person so exercising the Option (or, if the Option
is exercised by the Optionee and if the Optionee so requests in the notice exercising the Option, shall be registered in the name of
the Optionee and the Optionee’s spouse, jointly, with right of survivorship), and shall be delivered as provided above to, or upon
the written order of, the person exercising the Option. In the event the Option is exercised by any person after the death or disability
of the Optionee, the notice shall be accompanied by appropriate proof of the right of such person to exercise the Option. All Common
Shares that are purchased upon exercise of the Option as provided herein shall be fully paid and non-assessable.

 

Upon
exercise of the Option, Optionee shall be responsible for all employment and income taxes then or thereafter due (whether Federal, State
or local).

 

6. Certain
Adjustments.

 

(a) Stock
Dividends and Splits. If the Company, at any time while this Option Agreement is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions on Common Shares or any other equity or equity equivalent securities payable in Common Shares (which,
for avoidance of doubt, shall not include any Common Shares issued by the Company upon exercise of this Option Agreement), (ii) subdivides
outstanding Common Shares into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding Common
Shares into a smaller number of shares, or (iv) issues by reclassification of the Common Shares any shares of capital stock of the Company,
then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of Common Shares (excluding
treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of Common Shares
outstanding immediately after such event, and the number of shares issuable upon exercise of this Option shall be proportionately adjusted
such that the aggregate Exercise Price of this Option shall remain unchanged. Any adjustment made pursuant to this Section 6(a) shall
become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of a subdivision, combination or re classification.

 

(b) Subsequent
Equity Sales. If the Company or any subsidiary thereof, as applicable, at any time while this Option is outstanding, shall sell,
enter into an agreement to sell, or grant any option to purchase, or sell or grant any right to reprice, or otherwise dispose of or issue
(or announce any offer, sale, grant or any option to purchase or other disposition) any Common Shares or Common Stock Equivalents, at
an effective price per share less than the Exercise Price then in effect (such lower price, the “Base Share Price”
and such issuances collectively, a “Dilutive Issuance”) (it being understood and agreed that if the holder
of the Common Shares or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset
provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are
issued in connection with such issuance, be entitled to receive Common Shares at an effective price per share that is less than the Exercise
Price, such issuance shall be deemed to have occurred for less than the Exercise Price on such date of the Dilutive Issuance at such
effective price), then simultaneously with the consummation (or, if earlier, the announcement) of each Dilutive Issuance the Exercise
Price shall be reduced to equal the Base Share Price. Notwithstanding the foregoing, no adjustments shall be made, paid or issued under
this Section 6(b) in respect of an Exempt Issuance. The Company shall notify the Optionee, in writing, no later than the Trading Day
following the issuance or deemed issuance of any Common Shares or Common Stock Equivalents subject to this Section 6(b), indicating therein
the applicable issuance price, or applicable reset price, exchange price, conversion price and other pricing terms (such notice, the
“Dilutive Issuance Notice”). For purposes of clarification, whether or not the Company provides a Dilutive
Issuance Notice pursuant to this Section 6(b), upon the occurrence of any Dilutive Issuance, the Holder is entitled to receive a number
of Common Shares based upon the Base Share Price regardless of whether the Optionee accurately refers to the Base Share Price in the
Notice of Exercise. If the Company enters into a Variable Rate Transaction, the Company shall be deemed to have issued Common Stock or
Common Stock Equivalents at the lowest possible price, conversion price or exercise price at which such securities may be issued, converted
or exercised.

 

    	3

     

    

 

(c) Subsequent
Rights Offerings. If the Company, at any time while this Option Agreement is outstanding, shall issue rights, options or warrants
to all holders of Common Shares (and not to the Optionee) entitling them to subscribe for or purchase Common Shares at a price per share
less than the closing price on the record date mentioned below, then the Exercise Price shall be multiplied by a fraction, of which the
denominator shall be the number of Common Shares outstanding on the date of issuance of such rights, options or warrants plus the number
of additional Common Shares offered for subscription or purchase, and of which the numerator shall be the number of Common Shares outstanding
on the date of issuance of such rights, options or warrants plus the number of shares which the aggregate offering price of the total
number of shares so offered (assuming receipt by the Company in full of all consideration payable upon exercise of such rights, options
or warrants) would purchase at such closing price. Such adjustment shall be made whenever such rights, options or warrants are issued,
and shall become effective immediately after the record date for the determination of stockholders entitled to receive such rights, options
or warrants.

 

(d) Pro
Rata Distributions. If the Company, at any time while this Option Agreement is outstanding, shall distribute to all holders of Common
Shares (and not to the Optionee) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to
subscribe for or purchase any security other than the Common Shares), then in each such case the Exercise Price shall be adjusted by
multiplying the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders entitled to receive
such distribution by a fraction of which the denominator shall be the closing price determined as of the record date mentioned above,
and of which the numerator shall be such closing price on such record date less the then per share fair market value at such record date
of the portion of such assets or evidence of indebtedness or rights or warrants so distributed applicable to one outstanding Common Share,
as determined by the Board of Directors in good faith. In either case the adjustments shall be described in a statement provided to the
Optionee of the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one Common Share.
Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned
above.

 

    	4

     

    

 

(e) Fundamental
Transaction. If, at any time while this Option Agreement is outstanding, (i) the Company, directly or indirectly, in one or more
related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company (or any subsidiary
of the Company), directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all
or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender
offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Shares are permitted
to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of
the outstanding Common Shares, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Shares or any compulsory share exchange pursuant to which the Common Shares are effectively
converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related
transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off, merger or scheme of arrangement) with another Person or group of Persons whereby such other Person or group
acquires more than 30% of the outstanding Common Shares (not including any Common Shares held by the other Person or other Persons making
or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business
combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Option Agreement,
the Optionee shall receive, for each Common Share that would have been issuable upon such exercise immediately prior to the occurrence
of such Fundamental Transaction, the number of Common Shares of the successor or acquiring corporation or of the Company, if it is the
surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result
of such Fundamental Transaction by a holder of the number of Common Shares for which this Option is exercisable immediately prior to
such Fundamental Transaction, as adjusted in accordance with provisions of this Option Agreement. If holders of Common Shares are given
any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Optionee shall be given the same
choice as to the Alternate Consideration it receives upon any exercise of this Option Agreement following such Fundamental Transaction.
The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor
Entity”) to assume in writing all of the obligations of the Company under this Option Agreement and the other Transaction
Documents in accordance with the provisions of this Section 6(d) pursuant to written agreements in form and substance reasonably satisfactory
to the Optionee and approved by the Optionee (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option
of the Optionee, deliver to the Optionee in exchange for this Option Agreement a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Option Agreement which is exercisable for a corresponding number of shares
of capital stock of such Successor Entity (or its parent entity) equivalent to the Common Shares acquirable and receivable upon exercise
of this Option Agreement (without regard to any limitations on the exercise of this Option Agreement) prior to such Fundamental Transaction,
and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative
value of the Common Shares pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares
of capital stock and such exercise price being for the purpose of protecting the economic value of this Option Agreement immediately
prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Optionee.
Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from
and after the date of such Fundamental Transaction, the provisions of this Option Agreement referring to the “Company” shall
refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations
of the Company under this Option Agreement with the same effect as if such Successor Entity had been named as the Company herein. “Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

(f) Calculations.
All calculations under this Section 6 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes
of this Section 6, the number of Common Shares deemed to be issued and outstanding as of a given date shall be the sum of the number
of Common Shares (excluding treasury shares, if any) issued and outstanding.

 

    	5

     

    

 

(g) Notice
to Optionee.

 

(i) Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 6, the Company shall promptly
deliver to the Optionee by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment
to the number of Common Shares issuable upon exercise of this Option and setting forth a brief statement of the facts requiring such
adjustment.

 

(ii) Notice
to Allow Exercise by Optionee. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common
Shares, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Shares, (C) the Company shall
authorize the granting to all holders of the Common Shares rights or warrants to subscribe for or purchase any shares of capital stock
of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification
of the Common Shares, any consolidation or merger to which the Company (or any of its Subsidiaries) is a party, any sale or transfer
of all or substantially all of its assets, or any compulsory share exchange whereby the Common Shares are converted into other securities,
cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs
of the Company, then, in each case, the Company shall cause to be delivered by facsimile or email to the Optionee at its last facsimile
number or email address as it shall appear upon the Option Register of the Company, at least 20 calendar days prior to the applicable
record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such
dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common
Shares of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date
on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and
the date as of which it is expected that holders of the Common Shares of record shall be entitled to exchange their shares of the Common
Shares for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share
exchange; provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity
of the corporate action required to be specified in such notice. To the extent that any notice provided in this Option Agreement constitutes,
or contains, material, non-public information regarding the Company or any of its subsidiaries, the Company shall simultaneously file
such notice with the Commission pursuant to a Current Report on Form 8-K. The Optionee shall remain entitled to exercise this Option
Agreement during the period commencing on the date of such notice to the effective date of the event triggering such notice except as
may otherwise be expressly set forth herein.

 

(h) Voluntary
Adjustment By Company. Subject to the rules and regulations of the Trading Market, the Company may at any time during the term of
this Option Agreement, subject to the prior written consent of the Optionee, reduce the then current Exercise Price to any amount and
for any period of time deemed appropriate by the board of directors of the Company.

 

7. Non-Transferability
of Option. This Option is not assignable or transferable, in whole or in part, by the Optionee other than by will or by the laws
of descent and distribution. During the lifetime of the Optionee, the Option shall be exercisable only by the Optionee or, in the event
of his or her disability, by his or her guardian or legal representative.

 

8. Disability.
If the Optionee becomes disabled prior to the Expiration Date, then this Option may be exercised by the Optionee or by the Optionee’s
legal representative.

 

9. Death.
If the Optionee dies prior to the Expiration Date, then this Option may be exercised by the Optionee’s estate, personal representative
or beneficiary who acquired the right to exercise this Option by bequest or inheritance or by reason of the Optionee’s death, to
the extent of the number of Common Shares with respect to which the Optionee could have exercised it on the date of his or her death,
at any time prior to the earlier of (i) the Expiration Date or (ii) one year after the date of the Optionee’s death. Any part of
the Option that was not exercisable immediately before the Optionee’s death shall terminate at that time.

 

    	6

     

    

 

10. Securities
Matters.

 

(a) If,
at any time, counsel to the Company shall determine that the listing, registration or qualification of the Common Shares subject to the
Option upon any securities exchange or under any state or federal law, or the consent or approval of any governmental or regulatory body,
or that the disclosure of non-public information or the satisfaction of any other condition is necessary as a condition of, or in connection
with, the issuance or purchase of Common Shares hereunder, such Option may not be exercised, in whole or in part, unless such listing,
registration, qualification, consent or approval, or satisfaction of such condition shall have been effected or obtained on conditions
acceptable to the Board of Directors. The Company shall be under no obligation to apply for or to obtain such listing, registration or
qualification, or to satisfy such condition. The Board shall inform the Optionee in writing of any decision to defer or prohibit the
exercise of an Option. During the period that the effectiveness of the exercise of an Option has been deferred or prohibited, the Optionee
may, by written notice, withdraw the Optionee’s decision to exercise and obtain a refund of any amount paid with respect thereto.

 

(b) The
Company may require: (i) the Optionee (or any other Person exercising the Option in the case of the Optionee’s death or disability)
as a condition of exercising the Option, to give written assurances, in substance and form satisfactory to the Company, to the effect
that such Person is acquiring the Common Shares subject to the Option for his or her own account for investment and not with any present
intention of selling or otherwise distributing the same, and to make such other representations or covenants; and (ii) that any certificates
for Common Shares delivered in connection with the exercise of the Option bear such legends, in each case as the Company deems necessary
or appropriate, in order to comply with federal and applicable state securities laws, to comply with covenants or representations made
by the Company in connection with any public offering of its Common Shares or otherwise. The Optionee specifically understands and agrees
that the Common Shares, if and when issued upon exercise of the Option, may be “restricted securities,” as that term is defined
in Rule 144 under the Securities Act of 1933 and, accordingly, the Optionee may be required to hold the shares indefinitely unless they
are registered under such Securities Act of 1933, as amended, or an exemption from such registration is available.

 

(c) The
Optionee shall have no rights as a shareholder with respect to any Common Shares covered by the Option (including, without limitation,
any rights to receive dividends or non-cash distributions with respect to such shares) until the date of issue of a stock certificate
to the Optionee for such Common Shares. No adjustment shall be made for dividends or other rights for which the record date is prior
to the date such stock certificate is issued.

 

11. Authorized
Shares. The Company covenants that at all times following the Company’s reverse stock split of its Common Shares pursuant to
the terms set forth in that certain Securities Purchase Agreement dated as of August 30, 2022, it will reserve from its authorized and
unissued Common Shares a sufficient number of shares to provide for the issuance of Common Shares upon the exercise of any purchase rights
under this Option Agreement. The Company further covenants that its issuance of this Option Agreement shall constitute full authority
to its officers who are charged with the duty of issuing the necessary Common Shares upon the exercise of the purchase rights under this
Option Agreement. The Company will take all such reasonable action as may be necessary to assure that such Common Shares may be issued
as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the
Common Shares may be listed. The Company covenants that all Common Shares which may be issued upon the exercise of the purchase rights
represented by this Option Agreement will, upon exercise of the purchase rights represented by this Option Agreement and payment for
such Common Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes,
liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously
with such issue).

 

    	7

     

    

 

Except
and to the extent as waived or consented to by the Optionee, the Company shall not by any action, including, without limitation, amending
its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale
of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Option
Agreement, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as
may be necessary or appropriate to protect the rights of Optionee as set forth in this Option Agreement against impairment. Without limiting
the generality of the foregoing, the Company will (i) not increase the par value of any Common Shares above the amount payable therefor
upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable Common Shares upon the exercise of this Option Agreement,
and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body
having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Option Agreement.

 

Before
taking any action which would result in an adjustment in the Exercise Price, the Company shall obtain all such authorizations or exemptions
thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

 

12. Governing
Law. The laws of the State of Delaware (without reference to the principles of conflict of laws) shall govern the operation of, and
the rights of the Optionee and the Options granted herein.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	8

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Stock Option Agreement to be duly executed by its duly authorized officer, and the Optionee
has hereunto set his hand and seal, all as of the 13th day of September 2022.

 

	 	PROGRESSIVE
    CARE INC.
	 	 
	 	By:	        
	 	Name:	Alan
    Jay Weisberg
	 	Title:	Chief
    Executive Officer

 

	ACCEPTED AND ACKNOWLEDGED	 
	 	 
	 	 
	Charles M. Fernandez	 

 

    	9

     

    

 

PROGRESSIVE
CARE INC.

Notice of Exercise of Stock Option

 

I
hereby exercise the stock option granted to me pursuant to the Stock Option Agreement effective as of September [__], 2022, by Progressive
Care Inc. (the “Company”), with respect to the following number of shares of the Company’s common stock (“Shares”),
par value $0.0001 per Share, covered by said option:

 

Number
of Shares to be purchased:______________

 

Number
of Options to be exercised:______________

 

Number
Options used for cashless exercise: ______________

 

Purchase
price per Share: $0.022

 

Total
purchase price: Cashless Exercise, (see D, below).

 

		A.	Enclosed
                                            is cash or my certified check, bank draft, or postal or express money order in the amount
                                            of $_______ in full/partial [circle one] payment for such Shares;

 

and/or

 

		B.	Enclosed
                                            is/are Share(s) with a total Fair Market Value of $_______ in full/partial [circle one]
                                            payment for such Shares;

 

and/or

 

		C.	I
                                            have provided notice to [insert name of broker], a broker, who will render full/partial
                                            [circle one] payment for such Shares. [Optionee should attach to the notice of exercise
                                            provided to such broker a copy of this Notice of Exercise and irrevocable instructions to
                                            pay to the Company the full exercise price.]

 

and/or

 

		D.	I
                                            elect to satisfy the payment for Shares purchased hereunder by having the Company withhold
                                            ____________ newly acquired Shares pursuant to the exercise of the Option and/or [circle
                                            one] I elect to satisfy related federal and/or [circle one] state tax obligations
                                            by having the Company withhold ____________ newly acquired Shares pursuant to the exercise
                                            of the Option.

 

Please
have the certificate or certificates representing the purchased Shares registered in the following name or names*:

 

and
sent to:_____________________

 

DATED:

 

__________________

 

Optionee’s
Signature

 

*Certificates
may be registered in the name of the Optionee alone or in the joint names (with right of survivorship) of the Optionee and his or
her spouse.

 

    	10

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