Document:

Exhibit 10.20

 

Dated 24 April 2020

 

Between

 

MDxHealth SA

 

and

 

MVM V LP

 

MVM GP (No.5) LP

 

SUBSCRIPTION AGREEMENT

 

relating to new ordinary shares of MDxHealth SA

 

    

    

    

 

SUBSCRIPTION AGREEMENT

 

Between:

 

		(1)	MDxHealth SA, a limited liability company organised and existing under the laws of Belgium, having its registered office at
CAP Business Center, Zone Industrielle des Hauts-Sarts, Rue d’Abhooz 31, 4040 Herstal, Belgium, registered with the Register of
Legal Entities Liège (division Liège) under enterprise number 0479.292.440,

 

hereinafter referred to as the “Issuer”;

 

And: 

 

		(2)	MVM V LP, a limited partnership registered in England and Wales (LP019472), with registered address at 30 St George Street,
London W1S 2FH, United Kingdom,

 

		(3)	MVM GP (No.5) LP, a limited partnership registered in Scotland (SL032976), with registered address at
50 Lothian Road, Festival Square, Edinburgh EH3 9WJ, United Kingdom,

 

The parties referred to sub (2) and
(3) are hereinafter jointly referred to as the “Subscribers” and individually as a “Subscriber”;

 

The parties referred to sub (1), (2)
and (3) are hereinafter jointly referred to as the “Parties” and individually as a “Party”.

 

WHEREAS:

 

		(A)	The Issuer is a commercial-stage molecular diagnostics company. The Issuer’s shares are listed on the regulated market of Euronext
Brussels. At the date of this Agreement, the Issuer’s share capital is represented by 70,528,525 outstanding shares.

 

		(B)	In order to support the Issuer’s strategy to grow the business, the Issuer intends to increase its capital in the aggregate
amount of EUR 12,738,632.94 by means of a capital increase within the framework of the authorised capital by issuing new ordinary shares
to the Subscribers.

 

		(C)	The Subscribers are prepared to subscribe to such capital increase of the Issuer by a contribution in cash under the terms and conditions
set out in this subscription agreement (the “Agreement”), within the limits of the Issuer’s remaining authorised
capital as available at the date of this Agreement and without the shareholding resulting from its subscription reaching 30% of the Issuer’s
capital.

 

		(D)	The new ordinary shares to be issued by the Issuer to the Subscribers will only be admitted to trading after submission and approval
of a listing prospectus, as further set out below in this Agreement.

 

		(E)	The Subscribers recognise that the further development and growth of the Issuer’s business may require the Issuer to raise additional
financing in the future, whether through additional equity offerings or otherwise.

 

		(F)	On 30 July 2019, the Issuer and an affiliated entity of the Subscribers have entered into a non-disclosure agreement with a view to
enable the assessment of the Issuer’s business.

 

		(G)	The board of directors of the Issuer has duly considered the transaction set out in this Agreement in accordance with its fiduciary
duties and has unanimously approved this Agreement on 23 April 2020.

 

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THE PARTIES HEREBY AGREE AS FOLLOWS:

 

		1	Interpretation

 

		1.1	The original version of this Agreement has been drafted in English. Should this Agreement be translated
into any other language, the English version shall prevail among the Parties to the fullest extent permitted by Belgian law, provided,
however, that whenever translations of certain words or expressions are contained in the original English version of this Agreement, such
translations shall be conclusive in determining the Belgian legal concept(s) to which the Parties intended to refer.

 

		1.2	Capitalised words used in this Agreement or in its recitals have the meaning ascribed to them in this
Agreement.

 

		1.3	When using the expressions “shall use its best efforts” or “shall use its best endeavours”
(or any similar expression or any derivation thereof) in this Agreement, the Parties intend to refer to the Belgian legal concept of “middelenverbintenis”
/ “obligation de moyen”.

 

		1.4	When using the words “shall cause” or “shall procure that” (or any similar expression
or any derivation thereof), the Parties intend to refer to the Belgian law concept of “sterkmaking” / “porte-fort”.

 

		1.5	The words “include”, “includes”, including” and all forms and derivations
thereof shall mean including but not limited to.

 

		2	Capital Increase

 

		2.1	Subject to the terms and conditions set out in this Agreement, the Issuer shall proceed to increase the
Issuer’s capital by a unanimous vote of the Board of Directors within the framework of the authorised capital (“toegestane
kapitaal”/“capital autorisé”), on the basis of a special board report in accordance with article 7:198
juncto articles 7:179, 7:191 and 7:193 of the Belgian Code of Companies and Associations (a draft of which is attached as Annex
1).

 

		2.2	The board of directors of the Issuer shall realise this by way of a capital increase in cash in an aggregate
amount of EUR 12,738,632.94, against issuance of 20,162,924 new ordinary shares (the “New Shares”), with cancellation
of the preferential subscription rights of the existing shareholders for the benefit of the Subscribers (the “Capital Increase”).

 

		2.3	The Capital Increase shall take place on:

 

		(i)	15 May 2020, or

 

		(ii)	if the conditions precedent set forth in Clause 4.1 have not been satisfied or otherwise waived by the
Subscribers by the date referred to in paragraph (i), then on the date that is fifteen Business Days (as defined below) after the earliest
date that all of the conditions precedent set out in Clause 4.1 are either satisfied or waived by the Subscribers.

 

The day on which the Capital Increase
shall take place in accordance with this Clause 2.3 shall be referred to as the “Closing Date”. For the purpose of
this Agreement, “Business Day” shall mean any calendar day, other than a Saturday or a Sunday, on which banks are generally
open for business in Belgium and the United Kingdom.

 

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		2.4	The subscription price per New Share (the “Subscription Price”) shall be equal to EUR
0.631785.

 

		2.5	All New Shares shall be of the same type and shall enjoy identical rights as the existing ordinary shares
in the Issuer and shall fully share in the profits of the Issuer’s current financial year which started on 1 January 2020 and any
dividends or other distributions declared on or after the date of this Agreement.

 

		2.6	The New Shares shall be initially in the registered form on the Closing Date until the Issuer shall have
obtained the admission to trading on the regulated market of Euronext Brussels in accordance with Article 6.6 (the “Admission
to Trading”); from the moment after the New Shares have obtained Admission to Trading, they can be converted, at the request
of the Subscribers, into dematerialised form.

 

		2.7	Following the subscription for the New Shares, the Subscribers shall make such filings and notifications
of their respective holding of shares in the Issuer, as shall be required by applicable law, including (but not limited to) the applicable
Belgian shareholder transparency rules.

 

		3	Subscription commitment

 

On and subject to the terms and conditions
set out in this Agreement (including the conditions precedent set out in Clause 4), the Subscribers undertake to the Issuer to subscribe
at the Subscription Price for 20,162,924 New Shares on the Closing Date, in the proportions set out in the table below and to fully pay
for such New Shares by depositing an aggregate amount of EUR 12,738,632.94 on the blocked bank account in the Issuer’s name as referred
to in article 7:195 of the Belgian Code of Companies and Associations (the “Blocked Account”) at the latest on the
Closing Date prior to the execution of the notarial deed in respect of the Capital Increase. The Issuer shall notify the details of the
aforementioned Blocked Account to the Subscribers at the latest three Business Days prior to the contemplated Closing Date.

 

	Subscriber	 	Number of shares	 	 	Subscription amount
	MVM V LP	 	 	19,755,592	 	 	EUR 12,481,286.69
	MVM GP (No.5) LP	 	 	407,332	 	 	EUR 257,346.25

 

		4	Conditions precedent

 

		4.1	The obligations of the Subscribers set out in Clause 3 are subject to the satisfaction of each of the
following conditions precedent:

 

		(i)	each of respectively Biovest NV and Valiance Holdings Limited, Valiance Life Sciences Growth Investment
Fund SICAV-SIF and TopMDx Ltd. having unconditionally and irrevocably undertaken in writing to vote, or having unconditionally and irrevocably
voted by correspondence, in favour of the appointment of Eric Bednarski as a new director of the Issuer at the general shareholders’
meeting referred to in Clause 6.1;

 

		(ii)	the annual accounts of the Issuer for financial year ending 31 December 2019 being drawn up by the board
of directors must be in a form without material deviations from the unaudited financial results announced by the Issuer in its press release
of 26 February 2020;

 

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		(iii)	on or before the Closing Date, the Subscribers having received an irrevocable payment instruction from
the Issuer in a form reasonably satisfactory to it, authorising and instructing the financial institution where the Blocked Account is
held to deduct from the funds in the Blocked Account immediately after the effective realisation of the Capital Increase and the resulting
issue of the New Shares on the Closing Date, and prior to any other payment from the Blocked Account, the aggregate amount equal to the
fees and expenses of the Subscribers pursuant to Clause 6.5 of this Agreement and to pay such aggregate amount to any account designated
by the Subscribers;

 

		(iv)	each of the representations or warranties made by the Issuer as set out in Clause 7.1 being true or accurate
as of the date of this Agreement and as of the Closing Date;

 

		(v)	each of the representations or warranties made by the Issuer as set out in Clause 7.2 being true
or accurate in all material respects as of the date of this Agreement;

 

		(vi)	the Issuer having complied with all of its obligations under this Agreement that have to be complied with
on or prior to the Closing Date; and

 

		(vii)	on or before the Closing Date no event has occurred resulting in the destruction of the Issuer’s
molecular diagnostics laboratory facility located in Irvine, California (the “Facility”) or an unplanned discontinuation
of the operation of the Facility; for these purposes, an “event” means (a) any outbreak or escalation of hostilities, act
of terrorism, the declaration by the United States or the state of California of a national emergency or war or other calamity or crisis;
or (b) accidents, fires, explosions, plagues or epidemics, or (c) natural disasters such as but not limited to storm, cyclone, hurricane,
earthquake, landslide, flood, drought etc., or (d) any event of a similar nature.

 

		4.2	The Issuer shall use its best efforts to ensure the due satisfaction of the conditions precedent that
are set out in Clause 4.1 as soon as possible.

 

		4.3	The Subscribers may at any time waive in whole or in part any of the conditions precedent set out in Clause
4.1 by written notice to the Issuer, provided, however, that the Subscribers must confirm in writing to the Issuer (with e-mail to the
Issuer’s CEO being sufficient) no later than Sunday, 26 April 2020, at 6:00 p.m. Brussels time, whether the condition precedent
in paragraph (ii) of Clause 4.1 is waived or satisfied, and that in the absence of such confirmation in writing to the Issuer by that
time the condition precedent in in paragraph (ii) of Clause 4.1 shall be irrevocable and definitively deemed satisfied.

 

		5	Closing

 

On the Closing Date, the realisation
of the Capital Increase, the subscription for the New Shares by the Subscribers and the issuance of the New Shares will be recorded in
a notarial deed in accordance with article 7:186 of the Belgian Code of Companies and Associations.

 

		6	Issuer’s undertakings

 

		6.1	The Issuer shall, subject to the provisions of Clause 8.3, include the appointment, subject to the occurrence
of the Capital Increase, of Eric Bednarski as a new director of the Issuer as a proposed resolution on the agenda of a general shareholders’
meeting of the Issuer scheduled to be held within 40 calendar days as from 28 May 2020.

 

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		6.2	With effect as from the date of this Agreement and for as long as the Subscribers jointly own 5% of the
shares in the Issuer, Subscribers shall have the right to have a non-voting board observer (the “Observer”) at the
board of directors of the Issuer. The Observer shall initially be Eric Bednarski and thereafter, as from the appointment of Eric Bednarski
as a director, Kyle Dempsey.

 

As long as the Subscribers have the right
to have an Observer at the board of directors as aforementioned, the Observer can be replaced at the request of the Subscribers.

 

The Subscribers agree that, upon written
request of the Issuer, it will promptly replace the individual serving as Observer if the Observer has been in material breach of the
confidentiality, discretion or no-trade commitments referred to above, or if the Observer has a management role or senior position within
a significant competitor of the Issuer.

 

The Observer shall have access to the
same level of information as a director (including in relation to information that is discussed at the level of the committees of the
board of directors), and is entitled to attend meetings of the board of directors of the Issuer.

 

The Subscribers shall procure that the
Observer will, prior to receiving any information to be provided to the Observer pursuant to this Agreement, enter into confidentiality,
discretion and no-trade commitments in form and substance satisfactory to the Issuer. The Subscribers shall further procure that the Observer
shall upon request of the Issuer’s board of directors, in case of a conflict of interest (in the sense of Art. 7:96 of the Belgian
Code of Companies and Associations) in respect of any topic discussed on a meeting of any board of directors, leave the meeting for the
period during which such topic is discussed.

 

		6.3	Subject to the provisions of Clause 8.3, the Issuer’s Board of Directors shall use best efforts
to cause the proposal set out in Clause 6.1 to be approved at the Issuer’s general shareholders’ meeting referred to in Clause
6.1 (including by supporting and defending the relevant proposal and recommending that the Issuer’s shareholders approve the relevant
proposal). If the proposal set out in Clause 6.1 were not to be adopted at the Issuer’s general shareholders’ meeting referred
to in Clause 6.1, the board of directors of the Issuer shall convene, subject to the provisions of Clause 8.3, as soon as reasonably practicable
thereafter a special shareholders’ meeting with as agenda the same or a similar proposal to appoint a Subscribers’ representative
as a director of the Issuer.

 

The Subscribers acknowledge that the representative
that is to be appointed as director pursuant to Clause 6.1 is required to act as any other member of the Issuer’s board of directors
with regard to discretion and confidentiality.

 

		6.4	As soon as practicable after the appointment of Eric Bednarski as a director in accordance with Clause
6.1, the Issuer’s Board of Directors shall appoint Eric Bednarski as a member of the Issuer’s Nomination and Remuneration
Committee and make any other required changes to the committee to ensure compliance with Belgian law.

 

		6.5	In consideration of the Subscribers’ commitment of time and personnel and the Subscribers having
incurred the expense of instructing advisers in connection with the Subscribers’ contemplated investment in the Capital Increase,
the Issuer agrees to pay to the Subscribers on the Closing Date reasonable fees and all expenses of the Subscribers’ legal counsel,
as well as any other expense incurred by the Subscribers in relation to the preparation of the Capital Increase, with a maximum of ninety
thousand US dollars (USD 90,000) (exclusive of any applicable VAT or sales taxes, but inclusive of other costs and charges) as properly
substantiated by appropriate documentation.

 

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		6.6	The Issuer undertakes to (i) apply to Euronext Brussels for the Admission to Trading of the New Shares,
as soon as practicable after the Closing Date and in any event within 90 days after the Closing Date and (ii) prepare as soon as reasonably
possible after the date of this Agreement, and submit as soon as practicable after the Closing Date to the FSMA for timely approval, a
listing prospectus prepared in respect of the New Shares in accordance with Article 3(3) of Regulation (EU) 2017/1129 of the European
Parliament and of the Council.

 

		6.7	The Issuer undertakes that, during the Term (as defined in Clause 8) of this Agreement, neither the board
of directors, nor any of its subsidiaries (for which the Issuer procures the result), nor the competent corporate bodies of its subsidiaries
(for which the Issuer procures the result), shall:

 

		(i)	decide on any issuance of shares, subscription rights or convertible bonds in the framework of the authorized
capital, other than (x) for the purpose of the Capital Increase, (y) in connection with the grant of subscription rights or stock options
to employees, consultants, directors or other members of the personnel of the Issuer and/or its subsidiaries, or otherwise in the ordinary
course of business and consistent with past practice, or (z) pursuant to the exercise or conversion of outstanding securities or rights
issued by the Issuer prior to the date of this Agreement;

 

		(ii)	enter into any loan agreement, credit facility, bond issuance or any other form of bank debt financing
arrangement in excess of EUR 2,000,000 in the aggregate (other than payment holidays or deferred payment arrangements with suppliers or
customers, or similar working capital arrangements);

 

		(iii)	make any initial or further approach or offer to, entertain any approach or offer from, or enter into
or continue discussions or negotiations with, or enter into any agreement with, any other person with a view to the sale or issuance of
any shares of the Issuer;

 

		(iv)	decide on or propose any merger split, transfer or contribution of a branch of activity or universality,
any sale or other form of transfer of a substantial part of the business or assets of the Issuer or any of its subsidiaries; and

 

		(v)	take any initiatives for any share buy-back;

 

except in each case with the prior written
approval of the Subscribers, which approval shall not be unreasonably withheld or delayed.

 

Nothing in this Agreement shall restrict
the Issuer after the Term to do any transaction or operation, whether as referred to in paragraphs (i) to (v) or otherwise.

 

		6.8	The Issuer undertakes, as soon as practicable after the appointment of Eric Bednarski as a director in
accordance with Clause 6.1, to (i) add Eric Bednarski to the Issuer’s existing D&O insurance and (ii) procure that the Issuer’s
US subsidiary, MDxHealth, Inc., will enter into indemnification agreements directly with Eric Bednarski to indemnify him, to the greatest
extent permitted by law, for liabilities to the extent that they may arise from, or claims therefor which are based on, US-associated
activities of the US subsidiary or the Issuer, including any claims based on a theory of derivative liability in the right of the US subsidiary.

 

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		7	Representations and warranties

 

		7.1	The Issuer represents and warrants to the Subscribers on and as of the date of this Agreement and on and
as of the Closing Date (as if the representations and warranties had been repeated on that date) that:

 

		7.1.1	it is duly incorporated and validly existing and in good standing under the laws of Belgium, with full
power and authority to conduct its business and is not in violation of any of the provisions of its organisational documents;

 

		7.1.2	(a) it has 70,528,525 ordinary shares outstanding, (b) it has a maximum of 6,328,687 subscription rights
(inschrijvingsrechten) outstanding that give right to the acquisition of ordinary shares upon their exercise or conversion, and
(c) it entered into an “Agreement for the Provision of Several Convertible Loans”, dated 23 September 2019, with Kreos Capital
VI (UK) Limited (“Kreos”), which allows Kreos to subscribe for up to 741,177 ordinary shares (subject to the adjustments
provided for in such agreement), such that (subject to the foregoing provisions) its fully diluted share capital would be represented
by a maximum of 77,598,389 ordinary shares, not taking into account the New Shares to be issued pursuant to this Agreement;

 

		7.1.3	it has taken all necessary corporate and/or regulatory actions to authorise the execution and the performance
of its obligations under this Agreement and such execution and performance do not and will not conflict with or constitute a default or
breach under any provision of (i) any agreement or instrument to which it is a party, (ii) its organisational documents, or (iii) any
law, regulation or stock exchange rule;

 

		7.1.4	it has the full right, power and authority to execute and deliver this Agreement and to perform its obligations
under this Agreement and this Agreement constitutes a valid and legally binding agreement of the Issuer enforceable in accordance with
its terms;

 

		7.1.5	the New Shares, when issued and paid for in accordance with this Agreement, will be validly and duly issued
and fully paid shares of the only class of shares of the Issuer in accordance with the applicable provisions of the Issuer’s organisational
documents and Belgian law; and

 

		7.1.6	all necessary consents, authorisations, notification, actions or things required to be taken, fulfilled
or done under Belgian law for the carrying out by the Issuer of the actions contemplated by this Agreement or the compliance by the Issuer
with the terms of this Agreement will be in full force and effect (except in relation to the Admission to Trading of the New Shares).

 

		7.2	The Issuer represents and warrants to the Subscribers on and as of the date of this Agreement that:

 

		7.2.1	there has been no material change in the Issuer’s business since its 2018 Annual Report which would
be reasonably likely to have a Material Adverse Effect, save as previously publicly disclosed;

 

		7.2.2	the information that has been publicly disclosed by the Issuer contains (taken as a whole) all material
information reasonably necessary to enable investors to make an informed assessment of the risks involved in the investment in shares
of the Issuer, the assets and liabilities, financial position, profits and losses and prospects of the Issuer and its subsidiaries (taken
as a whole);

 

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		7.2.3	except for the existence of this Agreement, it does not have at the date of entry into this Agreement
any inside information (within the meaning of the Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April
2014 on market abuse) concerning the Issuer that has not been publicly disclosed (irrespective of any legal basis to delay disclosure
to the public thereof);

 

		7.2.4	it has not received any form of formal and/or informal correspondence or other communication from the
Palmetto GBA Molecular Diagnostic Services (MolDx) Program, Medicare, other governmental authorities or their respective representatives
that the draft Local Coverage Determination (“LCD”) of SelectMDx may be materially to the detriment of the Issuer altered,
delayed or rejected, with the exception of alterations that were requested by the Issuer;

 

		7.2.5	it has not within the 24 months preceding the date of this Agreement received any notification from a
contracting party that such contracting party will amend or change the payment obligations of the Issuer’s existing material contracts
to the detriment of the Issuer, save for such amendments or changes that would not have a Material Adverse Effect;

 

		7.2.6	it has no knowledge of any ongoing litigation or of a threat of litigation, save for such litigation or
threatened litigation that would not have a Material Adverse Effect;

 

		7.2.7	it has not been informed of any investigations, audit findings, deficiencies or negative outcomes related
to laboratory investigations, regulatory certifications, accreditations or compliance matters from state organizations, federal organizations,
CMS, the Clinical Laboratory Improvements Amendments (“CLIA”) or the College of American Pathologists (“CAP”)
that, to its knowledge, remain open or ongoing, save for such investigations, audit findings, deficiencies or negative outcomes that would
not have a Material Adverse Effect;

 

		7.2.8	it has not been informed of any audits or investigations related to coverage, claim eligibility or payment
review of claims in relation to ConfirmMDx and/or SelectMDx that, to its knowledge, remain open or ongoing, save for such audits or investigations
that would not have a Material Adverse Effect;

 

		7.2.9	it has not been informed of any adverse future changes to its Centers for Medicare and Medicaid Services
(“CMS”) reimbursable amounts or to its contracted reimbursable amounts with commercial payers, except for any such changes
that would not have a Material Adverse Effect; and

 

		7.2.10	it has not been informed of any lawsuits or adversarial proceedings related to patents, freedom-to-operate,
validity of claims, inventorship, or infringement for SelectMDx and ConfirmMDx, and is not aware of any issued or pending patents that
would limit the Issuer’s freedom to operate in the preparation, processing or execution of the SelectMDx and ConfirmMDx tests. The
scope of the issued claims of each of the issued US patents (7,252,935 and 7,524,633 and 6,596,488) would prevent an unlicensed third
party from practicing the current commercial form of the ConfirmMDx test without infringing one or more claims thereof. The scope of the
issued claims of issued US patent (10,329,625) would prevent an unlicensed third party from practicing the current commercial form of
the SelectMDx test without infringing one or more claims thereof.

 

For the purposes of this Clause 7.2, “Material
Adverse Effect” means any material adverse effect on, or any development resulting in a material adverse effect on, the Issuer’s
future consolidated earnings and equity, provided, however, that the following shall not be considered as having a Material Adverse Effect:
(A) the outbreak or pandemic of the SARS-CoV-2 virus and/or Covid-19 or, (B) the actions taken by governments or other authorities to
counter the SARS-CoV-2 virus and/or Covid-19, and (C) the worsening of, respectively, this outbreak or pandemic, the consequences thereof
or the measures taken to counter them.

 

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		7.3	Each of the Subscribers represent and warrant to the Issuer on and as of the date of this Agreement and
on and as of the Closing Date (as if the representations and warranties had been repeated on that date) that:

 

		7.3.1	it has taken all necessary corporate and/or regulatory actions to authorise the execution and the performance
of its obligations under this Agreement and such execution and performance do not and will not conflict with or constitute a default or
breach under any provision of (i) any agreement or instrument to which it is a party or (ii) its organisational documents;

 

		7.3.2	it has the full right, power and authority to execute and deliver this Agreement and to perform its obligations
under this Agreement and this Agreement constitutes a valid and legally binding agreement of the Subscriber enforceable in accordance
with its terms; and

 

		7.3.3	except for the New Shares that it will subscribe for pursuant to this Agreement, it does not have at the
date of this Agreement any shares in the Issuer or other right to acquire such Shares.

 

		7.4	The representations and warranties in this Agreement shall continue in full force and effect despite any
completion of the arrangement for the issue and subscription of the New Shares under this Agreement.

 

		7.5	Notwithstanding the provisions of Clause 7.4, the Issuer shall have no liability to the Subscribers for
indemnification under a claim for breach of any of the representations and warranties made by the Issuer pursuant to Clauses 7.1 and 7.2,
unless a claim for indemnification is notified by the Subscribers in writing to the Issuer:

 

		7.5.1	prior to the expiry of the statute of limitations provided for by applicable law in relation to claims
based on a breach of the representations and warranties made by the Issuer pursuant to Clause 7.1; and

 

		7.5.2	within 18 months as from the Closing Date in relation to claims based on a breach of the representations
and warranties made by the Issuer pursuant to Clause 7.2.

 

		8	Term

 

		8.1	Without prejudice to Clauses 6.1 to 6.6 and Clauses 7.4 and 7.5 which shall (subject to what is stated
in such clauses) survive the termination of this Agreement, this Agreement is entered for a term (the “Term”) starting
on the date of this Agreement and ending on the earlier of:

 

		(i)	the Closing Date, and

 

		(ii)	in any event on 30 June 2020 if the Capital Increase has not occurred by that date.

 

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		8.2	The termination of this Agreement shall not affect any accrued rights or liabilities in respect of damages
for non-performance of obligations under this Agreement falling due for performance prior to such termination (including but not limited
to any recourse for failure of the Issuer to comply with Clause 6.6).

 

		8.3	It is expressly agreed and understood that:

 

		8.3.1	the Subscribers no longer have the right to an Observer if the Capital Increase has not occurred within
the Term;

 

		8.3.2	the Issuer has the right to remove the proposed appointment of Eric Bednarski as a new director of the
Issuer if the Capital Increase has not occurred by the date that the general shareholders’ meeting of the Issuer referred to in
Clause 6.1 is scheduled to be held; and

 

		8.3.3	the undertakings of the Issuer set out in Clauses 6.1 and 6.3 shall no longer apply if the Capital Increase
has not occurred prior to the expiry of the Term.

 

		9	Miscellaneous

 

		9.1	Disclosure

 

The Subscribers hereby consent to the
disclosure of this Agreement in (i) the press release which shall be issued by the Issuer upon the entry into this Agreement and (ii)
in the listing prospectus that will be published in the respect of the New Shares, provided in each case that the Issuer shall consult
in advance with the Subscribers on the wording of such disclosure.

 

		9.2	Confidentiality

 

		9.2.1	The existence, subject matter and content of this Agreement are confidential. Subject to Clause 9.1, each
Party is prohibited from disclosing all or any part of this Agreement, or even its existence, or any information received by such Party
from another Party in the framework of this Agreement, at any time.

 

		9.2.2	Clause 9.2.1 shall not prohibit disclosure or use of any information if and to the extent that:

 

		(i)	The disclosure or use is necessary in order to allow any Party to comply with any legal or regulatory
requirement to make any announcement or to provide information to any public authority provided, however, that such Party shall consult
with each other Party in respect of (a) the information that it intends to disclose in order to comply with such legal requirement and
(b) the manner in which such information will be disclosed;

 

		(ii)	The disclosure or use is required for the purpose of any judicial or arbitration proceedings arising out
of or in connection with this Agreement;

 

		(iii)	The disclosure is made to professional advisers of any Party on condition that such professional advisers
undertake to comply with the provisions of Clause 9.2.1 in respect of such information as if they were a party to this Agreement;

 

		(iv)	The information is or becomes publicly available (other than as a result of any breach by such Party of
this Agreement);

 

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		(v)	The information becomes available to the Party bound by this Clause 9.2 from a source which is not bound
by any obligation of confidentiality in relation to such information (as can be demonstrated by such Party’s written records and
other reasonable evidence); or

 

		(vi)	The other Parties have given prior written approval to the disclosure or use.

 

		9.2.3	The Parties shall take all necessary actions to ensure that no accidental or unauthorised disclosure of
the existence or occurrence of this Agreement occurs.

 

		9.3	Severability

 

		9.3.1	If any provision in this Agreement is held to be illegal, invalid or unenforceable, in whole or in part,
under any applicable law, then such provision or part of it shall be deemed not to form part of this Agreement, and the legality, validity
or enforceability of the remainder of this Agreement shall not be affected.

 

		9.3.2	In such case, each Party shall use its best efforts to immediately negotiate in good faith a valid replacement
provision that is as close as possible to the original intention of the Parties and has the same or as similar as possible economic effect.

 

		9.4	Assignment of rights and obligations

 

The Parties may not assign any of its
rights or transfer any of the obligations under this Agreement without the prior written consent of the other Party.

 

		9.5	Further assurance

 

Each of the Parties shall use reasonable
efforts to take all actions and do all things necessary, proper or advisable to consummate the transactions contemplated by this Agreement.

 

		9.6	Entire Agreement

 

This Agreement contains the entire agreement
between the parties with respect to its subject matter. It replaces and annuls all prior agreements, communications, offers, proposals
or correspondence, oral or written, exchanged or concluded between the parties relating to the same subject matter.

 

		9.7	Applicable law

 

This Agreement and any non-contractual
obligations arising out of or in connection with it shall be governed by and construed in accordance with Belgian law.

 

    11

    

    

 

		9.8	Jurisdiction

 

The Dutch speaking courts of Brussels
have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute relating to
non-contractual obligations arising out of or in connection with this Agreement).

 

		9.9	Counterparts

 

This Agreement may be signed in counterparts,
in the number of originals stated hereinafter. When taken together, the counterparts signed by all parties shall constitute one and the
same instrument.

 

[NEXT PAGE IS SIGNATURE PAGE]

 

    12

    

    

 

Done on 24 April 2020, in three (3) originals. Each Party acknowledges
receipt of its own original.

 

MDxHealth SA:

 

	/s/ Koen Hoffman	 	/s/ Michael McGarrity
	
     

    Name: Koen Hoffman

     

    Title: Chair
	 	
     

    Name: Michael McGarrity

     

    Title: CEO

 

    13

    

    

 

MVM V LP, represented by its manager MVM Partners LLP:

 

	/s/ Neil Akhurst	 	/s/ Thomas Casdagli
	
     

    Name: Neil Akhurst

     

    Title: Member
	 	
     

    Name: Thomas Casdagli

     

    Title: Member

 

MVM GP (No. 5) LP, represented by its manager
MVM Partners LLP:

 

	/s/ Neil Akhurst	 	/s/ Thomas Casdagli
	
     

    Name: Neil Akhurst

     

    Title: Member
	 	
     

    Name: Thomas Casdagli

     

    Title: Member

 

    14isig_ex101.htm

EXHIBIT 10.1
  
 COOPERATION AGREEMENT
  
 This Cooperation Agreement, dated as of October 11, 2021 (this “Agreement”), is entered into by and among Insignia Systems, Inc., a Minnesota corporation (the “Company”), Nicholas J. Swenson, an individual resident of Minnesota (“Swenson”), Air T, Inc., a Delaware corporation (“Air T”); Groveland Capital LLC, a Delaware limited liability company (“Groveland”); AO Partners I, L.P., a Delaware limited partnership (“AOPI”); AO Partners, LLC, a Delaware limited liability company (“AOP”), and Glenhurst Co., a Minnesota corporation (“Glenhurst”). Swenson, Air T, Groveland, AOPI, AOP, and Glenhurst are collectively referred to herein as the “Shareholder Group” and each individually as a “Member” of the Shareholder Group.
  
 WHEREAS, the Shareholder Group, in the aggregate, is currently the beneficial owner of 698,262 shares (the “Shares”) of the common stock, par value $0.01, of the Company (“Common Stock”), which represents approximately 39.6% of the issued and outstanding Common Stock as of the date hereof;
  
 WHEREAS, the Board of Directors of the Company (the “Board”) has considered the qualifications of Nicholas J. Swenson (the “Air T Nominee”) and conducted such review as it has deemed appropriate, including materials provided by the Shareholder Group and the Air T Nominee; and
  
 WHEREAS, the Board has determined that it is in the best interests of the Company and its shareholders to appoint the Air T Nominee to the Board, upon the terms set forth in this Agreement.
  
 NOW, THEREFORE, in consideration of the foregoing premises and the respective representations, warranties, covenants, agreements and conditions hereinafter set forth, and, intending to be legally bound hereby, the parties hereby agree as follows:
  
 1. Representations and Warranties of the Company. The Company represents and warrants as follows:
  
 (a) The Company has the corporate power and authority to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby.
  
 (b) This Agreement has been duly and validly authorized, executed and delivered by 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 affecting the rights of creditors and subject to general equity principles.
  
 (c) The execution, delivery and performance of this Agreement by the Company does not and will not (i) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to it, or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could 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 the Company is a party or by which it is bound.
  
 	 
	
	

	 

  
 2. Representations and Warranties of the Shareholder Group. Each Member of the Shareholder Group, severally, and not jointly, represents and warrants with respect to himself or itself as follows:
  
 (a) Such party, if an individual, has the legal capacity to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby. Such party, if an entity, has the corporate power and authority or the limited liability company power and authority, as applicable, to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby.
  
 (b) This Agreement has been duly and validly authorized, executed, and delivered by such Member of the Shareholder Group and constitutes a valid and binding obligation and agreement of such party, and is enforceable against such party in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws affecting the rights of creditors and subject to general equity principles.
  
 (c) The execution, delivery and performance of this Agreement by each Member of the Shareholder Group does not and will not (i) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to him or it, or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could 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 he or it is a party or by which he or it is bound.
  
 (d) The Shareholder Group is the “beneficial owner” of 698,262 shares of Common Stock (as defined herein). No Member of the Shareholder Group owns any Synthetic Equity Interests (as defined below) or any Short Interests (as defined below) in the Company.
  
 For purposes of this Agreement, (a) the term “Short Interests” means any agreement, arrangement, understanding or relationship, including any repurchase or similar so-called “stock borrowing” agreement or arrangement, engaged in, directly or indirectly, by such person, the purpose or effect of which is to mitigate loss to, reduce the economic risk (of ownership or otherwise) of shares of any class or series of the Company’s equity securities by, manage the risk of share price changes for, or increase or decrease the voting power of, such person with respect to the shares of any class or series of the Company’s equity securities, or which provides, directly or indirectly, the opportunity to profit from any decrease in the price or value of the shares of any class or series of the Company’s equity securities; and (b) the term “Synthetic Equity Interests” means any derivative, swap or other transaction or series of transactions engaged in, directly or indirectly, by such person, the purpose or effect of which is to give such person economic risk similar to ownership of equity securities of any class or series of the Company, including due to the fact that the value of such derivative, swap or other transactions are determined by reference to the price, value or volatility of any shares of any class or series of the Company’s equity securities, or which derivative, swap or other transactions provide, directly or indirectly, the opportunity to profit from any increase in the price or value of shares of any class or series of the Company’s equity securities, without regard to whether (i) the derivative, swap or other transactions convey any voting rights in such equity securities to such person; (ii) the derivative, swap or other transactions are required to be, or are capable of being, settled through delivery of such equity securities; or (iii) such person may have entered into other transactions that hedge or mitigate the economic effect of such derivative, swap or other transactions.
  
 	 
	2
	

	 

  
 3. Definitions. For purposes of this Agreement:
  
 (a) The terms “Affiliate” and “Associate” have the respective meanings set forth in Rule 12b-2 promulgated by the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”); the terms “beneficial owner” and “beneficial ownership” shall have the respective meanings as set forth in Rule 13d-3 promulgated by the SEC under the Exchange Act; and the terms “person” or “persons” shall mean any individual, corporation (including not-for-profit), general or limited partnership, limited liability company, joint venture, estate, trust, association, organization or other entity of any kind or nature.
  
 (b) The “Standstill Period” means the period beginning on the date of this Agreement and ending on the earlier of (i) the day immediately following the date final voting results are publicly announced for the annual meeting of shareholders of the Company to be held in 2022 (the “Covered Meeting”) and (ii) fifteen (15) days following the Air T Nominee’s involuntary removal from the Board.
  
 4. Appointment of Directors; Related Matters.
  
 (a) The Company hereby agrees that, effective as of the date hereof, the Company shall (i) increase the size of the Board to five (5) members, and (ii) appoint Nicholas J. Swenson to the Board. 
  
 (b) Subject to this Agreement remaining in full force and effect and the Shareholder Group continuing to beneficially own in the aggregate at least 10% of the then-outstanding Common Stock (the “Minimum Ownership Threshold”), the Company hereby agrees to include the Air T Nominee in its slate of nominees for election as directors of the Company at the Covered Meeting. With respect to the Covered Meeting, the Company will solicit proxies for the Air T Nominee in substantially the same manner as it has in prior years with respect to the Board’s nominees, will recommend to shareholders that they vote in favor of each of the Air T Nominee, and will cause all proxies received by the Company in favor of the Air T Nominee to be voted in favor of their election to the Board. During the Standstill Period, the Company’s Board will take no action to remove any of the Air T Nominee from the Board pursuant to Section 302A.223, Subdivision 2, of the Minnesota Statutes. 
  
 (c) As a condition to the Company’s appointment of the Air T Nominee to the Board and his or her subsequent nomination for election as a director of the Company at the Covered Meeting, the Air T Nominee will (i) provide to the Company such information as is required to be or is customarily disclosed for directors, candidates for directors and their affiliates and representatives, in proxy statements or other filings under applicable law or stock exchange rules or listing standards or is otherwise necessary for inclusion of such Air T Nominee in the Board’s slate of nominees, to the extent that the Company solicits the same information from all of its directors in accordance with past practices, (ii) consent to serve as a director of the Company if elected, and (iii) agree to be bound by all policies, codes and guidelines applicable to all directors of the Company, including the Code of Business Conduct and Ethics, and to preserve the confidentiality of the Company’s business and information, including discussions or matters considered in meetings of the Board or Board committees, to the same extent that the Company requires all of its directors to make any such agreement in accordance with past practices. 
  
 (d) If, during the Standstill Period, the Air T Nominee no longer serves as a director of the Company, and so long as the Shareholder Group meets the Minimum Ownership Threshold, the Shareholder Group shall be entitled to name a substitute nominee, who, provided such substitute nominee (i) meets the conditions set forth in Section 4(c), (ii) meets the director-independence standards of the Nasdaq Stock Market (“Nasdaq”), (iii) is not a former member of the Board, and (iv) is reasonably acceptable to the Board following review of the substitute nominee’s qualifications for director, shall be nominated, in the case of the annual meeting, or appointed, in the case of a mid-term vacancy, by the Board. Any such substitute nominee, following appointment, shall be deemed an Air T Nominee for all purposes hereunder.
  
 	 
	3
	

	 

  
 (e) Notwithstanding the foregoing, the Air T Nominee shall tender his or her resignation from the Board and any committee of the Board on which he or she then sits (it being understood that it shall be in the Board’s sole discretion whether to accept or reject such resignation) if at any time during the Standstill Period the Shareholder Group ceases collectively to beneficially own, in the aggregate, at least the Minimum Ownership Threshold. Following the occurrence of the foregoing, the Company shall have no further obligations under this Section 4.
  
 (f) At all times while the Air T Nominee is serving as a member of the Board no Member of the Shareholder Group shall pay any compensation (within the meaning of Nasdaq Rule 5250(b)(3)) to such Air T Nominee for his or her service as a member of the Board.
  
 (g) If a Second Director no longer serves as a director of the Company, and so long as the Shareholder Group meets the Minimum Ownership Threshold, the Board (whether directly or through its Governance, Compensation and Nominating Committee or another equivalent committee) will promptly identify a substitute nominee, who, upon approval by the Shareholder Group (which approval will not be unreasonably delayed or withheld), shall be nominated, in the case of the annual meeting, or appointed, in the case of a mid-term vacancy, by the Board. Any such substitute nominee, following appointment, shall be deemed an Air T Nominee for all purposes hereunder. For purposes of this Section 4(g), “Second Director” means the first individual, if any, who ceases service as a director of the Company during the Standstill Period and who is not already an Air T Nominee.
  
 5. Covenants.
  
 (a) Each of the Members of the Shareholder Group agrees that, during the Standstill Period, he or it will not, and he or it will cause each of such person’s Affiliates, Associates or agents or other persons acting on his or its behalf not to, and will cause his or its respective Affiliates and Associates not to:
  
 (i) submit, or otherwise induce or encourage any other person to submit, any shareholder proposal (pursuant to Rule 14a-8 promulgated by the SEC under the Exchange Act or otherwise) or any notice of nomination or other business for consideration, and will not nominate any candidate for election to the Board or publicly oppose the directors nominated by the Board;
  
 (ii) form, join in or in any other way participate in a “partnership, limited partnership, syndicate or other group” within the meaning of Section 13(d)(3) of the Exchange Act with respect to the Common Stock or deposit any shares of Common Stock in a voting trust or similar arrangement or subject any shares of Common Stock to any voting agreement or pooling arrangement, other than solely with other Members of the Shareholder Group or one or more Affiliates or Associates of a Member of the Shareholder Group with respect to the Common Stock currently owned as set forth in Section 2(e) of this Agreement or to the extent such a group may be deemed to result with the Company or any of its Affiliates or Associates as a result of this Agreement;
  
 (iii) solicit proxies or written consents of shareholders, or otherwise conduct any nonbinding referendum with respect to Common Stock, or make, or in any way participate in, any “solicitation” of any “proxy” within the meaning of Rule 14a-1 promulgated by the SEC under the Exchange Act (but without regard to the exclusion set forth in Rule 14a-1(l)(2)(iv)) to vote, or advise, encourage or influence any person with respect to voting, any shares of Common Stock with respect to any matter, or become a “participant” in any contested “solicitation” for the election of directors with respect to the Company (as such terms are defined or used under the Exchange Act), other than a “solicitation” or acting as a “participant” in support of all of the nominees of the Board at any Annual Meeting of Shareholders of the Company;
  
 	 
	4
	

	 

  
 (iv) other than as permitted under Section 302A.671, Subdivision 3, of the Minnesota Statutes (the “Minnesota Voting Statute”) in order to grant voting rights to shares of Common Stock beneficially owned by the Shareholder Group and its Affiliates, Common Stock, call, seek to call, or to request the call of, any meeting of the shareholders of the Company, including by written consent, or seek to make, or make, a shareholder proposal at any meeting of the shareholders of the Company or make a request for a list of the Company’s shareholders (or otherwise induce or encourage any other person to initiate such proposal or request), except with respect to a special meeting of shareholders in connection with or related to a tender offer effectuated in accordance with Section 6 for purposes of allowing shareholders to vote upon the approval of voting rights under the Minnesota Voting Statute with respect to any shares acquired pursuant to such tender offer;
  
 (v) except pursuant to Section 6, effect or seek to effect (including, without limitation, by entering into any discussions, negotiations, agreements or understandings with any third person), offer or propose (whether publicly or otherwise) to effect, or cause or participate in, or in any way assist or facilitate any other person to effect or seek, offer or propose (whether publicly or otherwise) to effect or participate in (i) any acquisition of any material assets or businesses, of the Company or any of its subsidiaries, (ii) any tender offer or exchange offer, merger, acquisition or other business combination involving the Company or any of its subsidiaries, or (iii) any recapitalization, restructuring, liquidation, dissolution or other extraordinary transaction with respect to the Company or any of its subsidiaries (each, an “Extraordinary Transaction”);
  
 (vi) publicly disclose, or cause or facilitate the public disclosure (including without limitation the filing of any document or report with the SEC or any other governmental agency or any disclosure to any journalist, member of the media or securities analyst) of any intent, purpose, plan or proposal to obtain any waiver, or consent under, or any amendment of, any of the provisions of this Section 5, or otherwise seek (in any manner that would require public disclosure by any of the Members of the Shareholder Group or their Affiliates or Associates) to obtain any waiver, consent under, or any amendment of, any provision of this Agreement;
  
 (vii) (A) make any public disclosure, announcement or statement regarding any intent, purpose, plan or proposal with respect to the Board, the Company, its management, policies or affairs or any of its securities or assets or this Agreement that is inconsistent with the provisions of this Agreement; (B) make, or issue or cause to be made or issued, or in any way encourage any other person to make or issue or cause to be made or issued, any such public disclosure, announcement or statement in support of any solicitation described in paragraph (iii) of this Section 5(a) (other than solicitations by the Company), or (C) take any action that could require the Company to make any public disclosure relating to such intent, purpose, plan, proposal or condition, or any other matter set forth in this Agreement;
  
 	 
	5
	

	 

  
 (viii) except pursuant to Section 6, acquire, offer or propose to acquire, or agree to acquire, on the market or through a private transaction, directly or indirectly, whether by purchase, tender or exchange offer, through the acquisition of control of another person, by joining a partnership, limited partnership, syndicate or other group (including any group of persons that would be treated as a single “person” under Section 13(d) of the Exchange Act), through swap or hedging transactions or otherwise, any securities of the Company or any rights decoupled from the underlying securities of the Company, provided that nothing in this Agreement shall prohibit the Shareholder Group and its Affiliates from acquiring shares of Common Stock up to an aggregate ownership of 45.0% of the outstanding shares of the Common Stock; or
  
 (ix) enter into any written agreement with any person (other than professional advisers to one or more Members of the Shareholder Group) with respect to any of the foregoing; finance, assist, encourage or seek to persuade any person to take any action or make any public statement with respect to any of the foregoing; or otherwise take or cause any action or make any public statement inconsistent with any of the foregoing.
  
 (b) Each Member of the Shareholder Group shall cause all shares of Common Stock beneficially owned by them and their Affiliates and Associates to be (i) present for quorum purposes at each Covered Meeting held during the Standstill Period, and at any adjournments or postponements thereof, and (ii) voted at all such meetings, (x) in favor of all directors nominated by the Board for election consistent with Section 4(b).
  
 (c) The Members of the Shareholder Group who filed the Schedule 13D shall promptly file an amendment to the Schedule 13D reporting the entry into this agreement, amending applicable items to conform to its obligations hereunder and appending or incorporating by reference this Agreement as an exhibit thereto. Such Members of the Shareholder Group shall provide to the Company a reasonable opportunity to review and comment on such amendment in advance of filing, and shall consider in good faith the reasonable comments of the Company.
  
 (d) During the Standstill Period, the Board will not increase the size of the Board to more than five (5) directors without the prior written consent of the Shareholder Group.
  
 (e) The Company shall not take any action to avoid or seek to avoid the observance or performance of any of the terms required to be observed or performed by the Company under this Agreement, but shall at all times in good faith take all actions that are necessary to carry out and perform all of the provisions of this Agreement. 
  
 6. Tender Offer. Notwithstanding the provisions of Section 5, the Shareholder Group may commence an open offer under Minnesota, United States and all other applicable securities, corporate and other laws to purchase all outstanding shares of Common Stock of the Company not then beneficially owned by the Shareholder Group, which offer shall be (i) for cash or stock at a premium to the then-current market price of the Common Stock, (ii) conducted in accordance with the tender offer provisions of the United States securities laws (including, without limitation, Section 14(d) of the Exchange Act) and (iii) conditioned upon the tender and purchase of not less than a majority of all outstanding shares of Common Stock of the Company held by all shareholders who are not Affiliates or Associates of the Shareholder Group as of the date the offer is commenced. Any determination by the Board whether to recommend that shareholders accept or reject any such offer shall be made by the Board in its sole discretion.
  
 7. Material Non-Public Information. The Members of the Shareholder Group acknowledge that they are aware that the United States securities law prohibit any person who has material non-public information about a company from purchasing or selling such securities of such company, or from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities.
  
 	 
	6
	

	 

  
 8. Voting Procedures. The Members of the Shareholder Group shall comply with all lawful voting procedures established by the Company to enable the Company to comply with the provisions of the Minnesota Voting Statute.
  
 9. Public Disclosures. Promptly following the execution and delivery of this Agreement, the Company shall issue a current report on Form 8-K (the “Report”). None of the parties hereto will make any public statements that are inconsistent with, or otherwise contrary to, the statements in the Report. The Company and the Shareholder Group shall not, and shall cause their respective Affiliates and Associates and representatives not to, (i) prior to the issuance of the Report, issue any press release or public announcement regarding this Agreement without the prior written consent of the other parties hereto, and (ii) during the Standstill Period, make any public statement, disclosure or announcement with respect to this Agreement that is inconsistent with the Report, except as required by applicable law or regulation, pursuant to the rules or listing standards of any stock exchange or with the prior written consent of the other party.
  
 10. Non-Disparagement. During the Standstill Period, none of the parties hereto (nor any of their respective subsidiaries, Affiliates, Associates, successors, assigns, officers, key employees or directors) shall directly or indirectly make or issue or cause to be made or issued any public disclosure, announcement, or statement (including without limitation (i) the filing of any document or report with the SEC or any other governmental agency unless required by law or (ii) any disclosure to any journalist, member of the media, or securities analyst) concerning any other party or, with respect to the Company, any of its past, present or future directors, officers, employees, other affiliates, agents, attorneys, or representatives, which disparages such other party or any of such other party’s respective past, present, or future directors, officers, employees or other affiliates, or any of their respective practices, procedures, business operations, products or services, in any manner; provided, for the benefit of clarification and the avoidance of doubt, that this provision shall not in any way prohibit members of the Shareholder Group from communicating directly with the Company and its management and Board in a non-public manner to communicate their concerns or raise issues related to the Company, its performance, the performance of management or any other matters related to the Company; provided further, that the restrictions in this Section 10 shall not (i) apply in any compelled testimony or production of information, whether by legal process, subpoena or as part of a response to a request for information from any governmental authority with jurisdiction over the party from whom information is sought, in each case, to the extent required, (ii) prohibit any person from reporting possible violations of federal law or regulation to any governmental authority pursuant to Section 21F of the Exchange Act or Rule 21F promulgated thereunder, or (iii) impose any liability on any person for non-public statements that express factual matters or such person’s opinion in good faith.
  
 11. Specific Performance. Each party hereto acknowledges and agrees, on behalf of itself and its Affiliates, that irreparable harm would occur in the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties will be entitled to specific relief hereunder, including, without limitation, an injunction or injunctions to prevent and enjoin breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof in any state or federal court in the State of Minnesota, in addition to any other remedy to which they may be entitled at law or in equity. Any requirements for the securing or posting of any bond with such remedy are hereby waived.
  
 	 
	7
	

	 

  
 12. Jurisdiction. Each party hereto agrees, on behalf of itself and its Affiliates, that any actions, suits or proceedings arising out of or relating to this Agreement or the transactions contemplated hereby will be brought solely and exclusively in any state or federal court in the State of Minnesota (and the parties agree not to commence any action, suit or proceeding relating thereto except in such courts), and further agrees that service of any process, summons, notice or document by U.S. registered mail to the respective addresses set forth in Section 16 of this Agreement will be effective service of process for any such action, suit or proceeding brought against any party in any such court. Each party, on behalf of itself and its Affiliates, irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby, in the state or federal courts in the State of Minnesota, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an improper or inconvenient forum.
  
 13. Applicable Law. This agreement shall be governed in all respects, including validity, interpretation and effect, by the laws of the State of Minnesota applicable to contracts executed and to be performed wholly within such state, without giving effect to the choice of law principles of such state.
  
 14. Counterparts. This Agreement may be executed in two or more counterparts which together shall constitute a single agreement.
  
 15. Entire Agreement; Amendment and Waiver; Successors and Assigns. This Agreement contains the entire understanding of the parties hereto with respect to, and supersedes all prior agreements relating to, its subject matter. There are no restrictions, agreements, promises, representations, warranties, covenants or undertakings between the parties other than those expressly set forth herein. This Agreement may be amended only by a written instrument duly executed by the parties hereto or their respective successors or assigns. No failure on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies provided by law. The terms and conditions of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by the parties hereto and their respective successors, heirs, executors, legal representatives, and assigns.
  
 16. Notices. All notices, requests, instructions or other documents to be given hereunder by any party to the other parties shall be in writing and shall be deemed duly given (i) upon delivery, when delivered personally, (ii) one (1) business day after being sent by overnight courier or when sent by electronic mail or facsimile transmission (with a confirming copy sent by overnight courier), and (iii) three (3) business days after being sent by registered or certified mail, postage prepaid at the address specified in this Section, or at such other address as is provided by a party to this Agreement to the other party pursuant to notice given in accordance with the provisions of this Section:
  
 if to the Company:
  
 Insignia Systems, Inc.
7308 Aspen Lane N, Suite 153
Minneapolis, Minnesota 55428
Attention: Chief Executive Officer
Email: kristine.glancy@insigniasystems.com
  
 with a copy to:
  
 Faegre Drinker Biddle & Reath LLP
90 South Seventh Street, Suite 2200
Minneapolis, Minnesota 55402
Attention: Joshua L. Colburn
Email: joshua.colburn@faegredrinker.com
  
 	 
	8
	

	 

  
 if to the Shareholder Group or any Member thereof:
  
 Air T, Inc.
5000 West 36th Street, Suite 200
Minneapolis, Minnesota 55416
 Attention: Nicholas J. Swenson
Email: nswenson@airt.net
  
 17. No Third-Party Beneficiaries. Nothing in this Agreement is intended to confer on any person other than the parties hereto or their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.
  
 18. Interpretation and Construction. 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, unless the context clearly otherwise requires. 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, regulation or statute defined or referred to herein means, unless otherwise indicated, such agreement, instrument, law, rule, regulation or statute as from time to time amended, modified or supplemented. Each of the parties hereto acknowledges that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution and delivery of this Agreement, and that it has executed and delivered the same with the advice of such counsel. Each party cooperated and participated in the drafting and preparation of this Agreement and the documents referred to herein, 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 hereto, and any controversy over interpretations of this Agreement shall be decided without regard to events of drafting or preparation.
  
 19. Termination and Effect of Termination. This Agreement shall remain in full force and effect for the Standstill Period. No termination shall relieve any party hereto from liability for any breach of this Agreement prior to such termination.
  
 20. Expenses. Each of the Company and the Shareholder Group shall be responsible for its own fees and expenses incurred in connection with the negotiation and execution of this Agreement. 
  
 [signature page follows]
  
 	 
	9
	

	 

  
 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized signatories of the parties as of the date first written above.
  
 	 	 INSIGNIA SYSTEMS, INC.
	
	 	 	 	 
		By:	/s/ Kristine A. Glancy 	
	  
	  
	Kristine A. Glancy	 
	 	 	 President and Chief Executive Officer
	 
	 	 	 	 
	  
	 AIR T, INC.
	  

	  
	  
	  
	  

	  
	 By:
	 /s/ Nicholas J. Swenson 
	  

	  
	  
	 Nicholas J. Swenson
	  

	  
	  
	 Chief Executive Officer
	  

	  
	  
	  
	  

	  
	 GROVELAND CAPITAL LLC
	  

	  
	  
	  
	  

	  
	 By: 
	 /s/ Nicholas J. Swenson 
	  

	  
	  
	 Nicholas J. Swenson, Managing Member
	  

	  
	  
	  
	  

	  
	 AO PARTNERS I, LLP
	  

	  
	 By: AO PARTNERS, LLC
Its: General Partner
	  

	  
	  
	  
	  

	  
	 By:
	 /s/ Nicholas J. Swenson 
	  

	  
	  
	 Nicholas J. Swenson, Managing Member
	  

	  
	  
	  
	  

	  
	 AO PARTNERS, LLC
	  

	  
	  
	  
	  

	  
	 By: 
	 /s/ Nicholas J. Swenson 
	  

	  
	  
	 Nicholas J. Swenson, Managing Member
	  

	  
	  
	  
	  

	  
	 GLENHURST CO.
	  

	  
	  
	  
	  

	  
	 By:
	 /s/ Nicholas J. Swenson 
	  

	  
	  
	 Nicholas J. Swenson, Sole Owner
	  

	  
	  
	  
	  

	  
	 /s/ Nicholas J. Swenson 
	  

	  
	 Nicholas J. Swenson
	  

  
 Signature Page to Cooperation Agreement
  
 	 
	10

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