Document:

f8k010510ex10_chinavoip.htm

     

    Exhibit
10.1

    
      

       

      SECURITIES
REDEMPTION AND PAY-OFF AGREEMENT

       

      This
Securities Redemption and Pay-off Agreement, dated as of January 5, 2010 (this
“Agreement”),
is entered into by and between China VoIP & Digital Telecom Inc., a Nevada
corporation (the “Company”), and
Castlerigg Master Investments, Ltd. (the “Investor).  The
Company and the Investor shall be referred to individually as a “Party” and
collectively as the “Parties.”

       

      W I T N E
S S E T H:

       

      WHEREAS:

       

      A.           The
Company and the Investor entered into that certain Securities Purchase
Agreement, dated as of December 21, 2007 (as amended, modified and restated, the
“Securities Purchase
Agreement”), pursuant to which, among other things, the Investor
purchased from the Company (i) the Senior Secured Convertible Note, dated as of
December 21, 2007 (the “2007 Note”), which
was convertible into shares of the Company’s common stock, par value $0.001 per
share (the “Common
Stock”), in accordance with the terms thereof, (ii) a Series A Warrant,
dated as of December 21, 2007  (the “2007 Series A
Warrant”), (iii) a Series B Warrant, dated as of December 21, 2007 (the
“2007 Series B
Warrant”) and (iv) a Series C Warrant, dated as of December 21, 2007 (the
“2007 Series C
Warrant”, and together with the 2007 Series A Warrant and 2007 Series B
Warrant, the “2007
Warrants”).

       

      B.           The
Company and the Investor entered into that certain Amendment and Exchange
Agreement, dated as of December 8, 2008, pursuant to which, among other things,
the Investor exchanged the 2007 Note and the 2007 Warrants for (i) the Amended
and Restated Senior Secured Convertible Note dated as of December 8, 2008 (the
“2008 Note”),
which is convertible into Common Stock, (ii) a Series A Warrant, dated as of
December 8, 2008 (the “2008 Series A
Warrant”), exercisable into 23,062,731 shares of Common Stock, (iii) a
Series B Warrant, dated as of December 8, 2008 (the “2008 Series B
Warrant”), exercisable into 16,143,911 shares of Common Stock, (iv) a
Series C Warrant, dated as of December 8, 2008 (the “2008 Series C
Warrant”) exercisable into 16,489,852 shares of Common Stock and (v) a
Series D Warrant, dated as of December 8, 2008 (the “2008 Series D
Warrant”, and together with the 2008 Series A Warrant, 2008 Series B
Warrant and 2008 Series C Warrant, the “2008 Warrants”),
exercisable into 7,500,000 shares of Common Stock.

       

      C.           The
Investor desires to have the Company redeem, and the Company desires to so
redeem, the 2008 Note and the 2008 Warrants (hereinafter, the “Redemption”), and the
Parties have agreed to (i) waive future claims against one another and certain
other persons and entities and (ii) release each other from certain obligations
and liabilities, all as further described in this Agreement.

       

      D.           The
Parties are willing to consummate the Redemption and to give the waivers and
releases described in the preceding clause, which Redemption shall involve the
payment to the Investor of a cash amount equal to $3,000,000 (the “Redemption
Amount”).

       

       

      
        
          
          

        

        
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      E.           Capitalized
terms used but not defined herein shall have the meaning ascribed thereto in the
Securities Purchase Agreement.

       

      NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
undersigned, in consideration of the premises, covenants and agreements
contained herein, do hereby agree as follows:

       

      1. Mutual Waiver and
Release.

       

      (a) Upon the
Closing, the Investor hereby agrees, on behalf of itself and its “affiliates”
(as defined in Rule 144), to waive any and all claims, arising on or before the
date hereof, that the Investor or its affiliates may now or in the future have
against the Company and its respective affiliates, partners, members,
stockholders, managers, directors, officers, agents and assigns (and all
affiliates of such partners, members, stockholders, managers, directors,
officers, agents and assigns) of the Company or any of the Company’s affiliates,
to the extent that such claims may directly or indirectly arise under or be
directly or indirectly related in any manner to the Transaction Documents (the
waiver described in this Section 1(a) is hereafter referred to as the “Investor
Waiver”).  The Investor Waiver shall include, without
limitation, a waiver of any and all claims, arising on or before the date
hereof, that the Investor or any of its affiliates may now or in the future have
as a result of a breach by the Company of any of its representations, warranties
or covenants set forth in the Transaction Documents.  Upon the
Closing, the Investor further agrees and acknowledges, on its own behalf and on
behalf of its affiliates, (i) to release the Company and all of its respective
affiliates from all obligations and liabilities arising (whether prior to, on or
after the date of this Agreement) under or directly or indirectly related to the
Transaction Documents, (ii) that all security interests and other liens granted
to or held by Investor as security under the 2008 Note shall be forever and
irrevocably satisfied, released and discharged and (iii) that the Transaction
Documents shall terminate and be of no further force or effect other than those
provisions therein that specifically survive termination.

       

      (b) Upon the
Closing, the Company hereby agrees, on behalf of itself and its affiliates, to
waive any and all claims that the Company or its affiliates may now or in the
future have against the Investor and its respective affiliates, partners,
members, stockholders, managers, directors, officers, agents and assigns (and
all affiliates of such partners, members, stockholders, managers, directors,
officers, agents and assigns) of the Investor or any of the Investor’s
affiliates, to the extent that such claims may directly or indirectly arise
under or be directly or indirectly related in any manner to the Transaction
Documents (the waiver described in this Section 1(b) is hereafter referred to as
the “Company
Waiver”).  The Company Waiver shall include, without
limitation, a waiver of any and all claims that the Company or any of its
affiliates may now or in the future have as a result of a breach by the Investor
of any of its representations, warranties or covenants set forth in the
Transaction Documents.  Upon the Closing, the Company further agrees,
on its own behalf and on behalf of its affiliates, (i) to release the
Investor and all of its respective affiliates from all obligations and
liabilities directly or indirectly arising (whether prior to, on or after the
date of this Agreement) under or directly or indirectly related to the
Transaction Documents and (ii) that the Transaction Documents shall terminate
and be of no further force or effect other than those provisions therein that
specifically survive termination.

       

       

      
        
          
          

        

        
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      (c) Each of
the Parties hereby acknowledges and agrees that the waivers, releases and
agreements set forth above in clauses (a) and (b) of this Section 1: (i) shall
not in any manner be construed as constituting a waiver of any claims that a
Party or any of its affiliates may have in the future as a result of a breach of
this Agreement by any other Party hereto, nor shall the releases set forth in
clauses (a) and (b) of this Section 1 be construed as constituting a release of
any obligations that a Party may have under this Agreement; and (ii) shall only
be effective at the Closing upon the satisfaction or waiver of the conditions
set forth in Section 3 (and for the avoidance of doubt, shall not be effective
if this Agreement is terminated or the Closing does not otherwise
occur).

       

      (d) Notwithstanding
anything to the contrary contained in this Agreement or in any other document,
the obligations and liabilities of the Company or any of its affiliates to
Investor under or in respect of the Transactions Documents insofar as such
obligations and liabilities survive termination of the Transaction Documents
shall continue in full force and effect in accordance with their
terms.

       

      2. Closing; Redemption and
Pay-off.

       

      (a) The
closing of the Redemption, the payment of the Redemption Amount and the
transactions provided for in this Agreement (the “Closing”) will take
place at 10:00 a.m. (New York City time) at the offices of Winston & Strawn
LLP, 200 Park Avenue, New York, New York 10166-4193, as promptly as practicable
following, but in no event later than, the third Business Day following the
satisfaction or waiver of each of the conditions set forth in Section 3 hereof,
or at such other time and place as may be agreed to by the parties
hereto.  Such time and date are referred to in this Agreement as the
“Closing
Date.”

       

      (b) As
consideration for the Redemption Amount and the Company Waiver and releases and
agreements set forth in Section 1 above, subject to the terms and conditions set
forth herein (including the satisfaction or waiver of the conditions set forth
in Section 3(b) below), the Investor shall, at the Closing, transfer and convey
to the Company the 2008 Note and the 2008 Warrants and the Company shall redeem
from the Investor the 2008 Note and the 2008 Warrants.

       

      (c) As
consideration for the 2008 Note and the 2008 Warrants and the Investor Waiver
and releases and agreements set forth in Section 1 above, subject to the terms
and conditions set forth in this Agreement, the Company shall, at the Closing,
pay to the Investor the Redemption Amount by bank wire transfer to the account
set forth on Exhibit
A attached hereto.

       

      3. Conditions to
Closing.

       

      (a) The
obligation of the Company to consummate the transactions contemplated hereby
(including, without limitation, the Redemption and payment of the Redemption
Amount) shall be subject to the satisfaction or waiver by the Company of each of
the following:

       

       

      
        
          
          

        

        
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      (i) The
delivery by the Investor to the Company of the 2008 Note and the 2008 Warrants
for cancellation; and

       

      (ii) The
representations and warranties made by the Investor in Section 5 of this
Agreement shall be true and correct as of the date hereof and at and as of the
Closing Date as if made at and as of the Closing Date and the Investor shall
have complied with all agreements and satisfied all conditions to be performed
or satisfied at or prior to the Closing.

       

      (b) The
obligation of the Investor to consummate the transactions contemplated hereby
(including, without limitation, the obligation of the Investor to transfer and
convey the 2008 Note and the 2008 Warrants) shall be subject to the satisfaction
or waiver by the Investor of each of the following:

       

      (i) The
Company shall have delivered to the Investor the Redemption Amount by bank wire
transfer in accordance with Section 2(c);

       

      (ii) The
Company shall have duly delivered to the Investor [1,000,000]1 shares of Common Stock pursuant to the
Conversion Notice attached hereto as Exhibit B (the “Conversion Notice”)
and in accordance with the terms of the 2008 Note, and each such share shall be
freely transferable pursuant to Rule 144 of the Securities Act;

       

      (iii) The
applicable transfer agent shall have removed any transfer restriction legend on
each share of Common Stock delivered pursuant to the Conversion Notice, in form
and substance satisfactory to the Investor;

       

      (iv) The
Investor shall have received the opinion of The Crone Law Group, LLP, the
Company’s outside counsel, dated as of the Closing Date, in form and substance
satisfactory to Investor (in its sole discretion);2

       

      (v) The
representations and warranties made by the Company in Section 4 of this
Agreement shall be true and correct as of the date hereof and at and as of the
Closing Date as if made at and as of the Closing Date and the Company shall have
complied with all agreements and satisfied all conditions on its part to be
performed or satisfied at or prior to the Closing;

       

      (vi) The
Company shall have obtained all governmental, regulatory or third party consents
and approvals, if any, necessary for the transactions contemplated hereby;
and

       

      (vii) The
Company shall have delivered to the Investor such other documents relating to
the transactions contemplated by this Agreement as the Investor or its counsel
may reasonably request.

       

      
                                                       
        

         

        1  Prior
to Closing, Investor will convert that portion of the 2008 Note necessary to
receive 1,000,000 shares of Common Stock.

        2  To
be provided by the Crone Law Group.  The Opinion should include due
authorization, enforceability, good standing, capitalization and 144 opinions,
and should be in form and substance sufficient for the transfer agent to remove
the legend.

      

       

       

      
        
          
          

        

        
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      4. Representations and
Warranties of the Company.  The Company represents and warrants
to the Investor as follows:

       

      (a) The
execution, delivery and performance by the Company of this Agreement, and the
consummation by the Company of the transactions contemplated by this Agreement,
have been duly authorized by the board of directors of the
Company.  Upon execution by the Company this Agreement will have been
duly executed and delivered by the Company and, assuming due execution by each
other Party, will constitute a legal, valid and binding obligation of the
Company enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
generally creditors’ rights and subject to general principles of
equity.

       

      (b) The
Company is duly authorized, validly existing and in good standing under the laws
of the State of Nevada and has all requisite power and authority to carry on its
business as currently conducted and to enter into and to perform its obligations
under this Agreement.

       

      (c) The
execution and delivery of, and the performance of or compliance with, this
Agreement, and the transactions contemplated hereby by the Company do not and
will not (i) with or without the giving of notice or passage of time,
contravene, result in any breach of or constitute a default under, any
applicable law or regulation, agreement, judgment, injunction, order, decree or
other instrument to which the Company is a party or by which it or its property
or assets is bound, (ii) require a consent, approval or waiver other than those
that shall be obtained prior to the Closing Date, or (iii) conflict with, or
accelerate or terminate any performance required by or under the governing or
operative documents of the Company or any agreement or other instrument to which
the Company is a party or by which the Company or its property or assets is
bound.

       

      (d) The
Common Stock (i) is designated for quotation or listed on the Principal Market
and (ii) has not been suspended by the SEC or the Principal Market from trading
on the Principal Market nor has suspension by the SEC or the Principal Market
been threatened, either (A) in writing by the SEC or the Principal Market or (B)
by falling below the minimum listing maintenance requirements of the Principal
Market.

       

      (e) Immediately
following the Redemption contemplated by this Agreement:

       

      (i) the cash
assets of the Company shall be greater than the total amount of its liabilities
(including all liabilities, whether or not reflected in a balance sheet prepared
in accordance with GAAP, and whether direct or indirect, fixed or contingent,
secured or unsecured, disputed or undisputed);

       

      (ii) the
Company shall be able to pay its debts and obligations in the ordinary course of
business as they become due; and

       

      (iii) the
Company shall have adequate capital to carry on its businesses and all
businesses in which its about to engage.

       

      
        
          
          

        

        
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      5. Representations and
Warranties of the Investor.  The Investor hereby represents and
warrants to the Company that the execution, delivery and performance by the
Investor of this Agreement, and the consummation by the Investor of the
transactions contemplated by this Agreement, have been duly authorized by all
necessary action on behalf of the Investor.  Upon execution by the
Investor, this Agreement will have been duly executed and delivered by the
Investor and, assuming due execution by each other Party, will constitute a
legal, valid and binding obligation of the Investor enforceable in accordance
with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting generally creditors’ rights and subject to
general principles of equity.

       

      6. Covenants.

       

      (a) Disclosure of Transactions
and Other Material Information.  On or before 8:30 a.m., New
York City time, on the first business day following the earlier to occur of (i)
the Closing Date or (ii) the Termination Date (as defined below), the Company
shall issue a press release and file a Current Report on Form 8-K describing the
terms of the transactions contemplated by this Agreement, the Company’s source
of funds for the Redemption Amount and/or an explanation describing the
Company’s inability to close the transactions contemplated hereby, in the form
required by the 1934 Act and attaching the material documents as an exhibit to
such filing (including all attachments, the “8-K
Filing”).  From and after the filing of the 8-K Filing with the
SEC, the Investor shall not be in possession of any material, nonpublic
information received from the Company, its affiliates or any of its respective
officers, directors, employees or agents, that is not disclosed in the 8-K
Filing.  The Company shall not, and shall cause each of its affiliates
and its and each of their respective officers, directors, employees and agents,
not to, provide the Investor with any material, nonpublic information regarding
the Company or any of its affiliates from and after the filing of the 8-K Filing
with the SEC without the express written consent of the Investor.  If
the Investor has, or believes it has, received any such material, nonpublic
information regarding the Company or any of its affiliates, it shall provide the
Company with written notice thereof.  The Company shall, within two
(2) business days of receipt of such notice, make public disclosure of such
material, nonpublic information.  In the event of a breach of the
foregoing covenant by the Company, any of its affiliates, or any of its or their
respective officers, directors, employees and agents, in addition to any other
remedy provided herein, the Investor shall have the right to make a public
disclosure, in the form of a press release, public advertisement or otherwise,
of such material, nonpublic information without the prior approval by the
Company, its affiliates, or any of its or their respective officers, directors,
employees or agents.  The Investor shall not have any liability to the
Company, its affiliates, or any of its or their respective officers, directors,
employees, stockholders or agents for any such disclosure.  Subject to
the foregoing, neither the Company, its affiliates nor the Investor shall issue
any press releases or any other public statements with respect to the
transactions contemplated hereby; provided, however, that the Company shall be
entitled, without the prior approval of the Investor, to make any press release
or other public disclosure with respect to such transactions (i) in substantial
conformity with the 8-K Filing and contemporaneously therewith and (ii) as is
required by applicable law and regulations (provided that in the case of clause
(i) the Investor shall be consulted by the Company in connection with any such
press release or other public disclosure prior to its
release).  Without the prior written consent of the Investor, and
except as contemplated by the prior subsection (i) or as required by applicable
law or regulation, neither the Company nor any of its affiliates shall disclose
the name of the Investor in any filing, announcement, release or
otherwise.

       

       

      
        
          
          

        

        
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      (b) Post-Closing
Deliveries.  The Investor shall deliver to the Company within
fifteen (15) days following the Closing Date:

       

      (i) The
original certificates representing the pledged shares of the Company pledged to
the Investor under the 2007 Pledge Agreement, as set forth on Exhibit C attached
hereto; and

       

      (ii) The
original certificate of pledged trademarks of the Company pledged to the
Investor under the 2007 Pledge Agreement, dated as of December 21, 2007, by and
between the Company and the Investor, as set forth on Exhibit D attached
hereto.

       

      (c) Release of
Liens.  Following the Closing (and after the receipt of the
Redemption Amount), Investor agrees to take all reasonable additional steps
requested by the Company necessary to release any liens or encumbrances that
were granted to the Investor in connection with the 2008 Note.

       

      7. Termination.  In
the event that the Closing does not occur on or before sixty (60) days from the
date hereof due to the Company's failure to satisfy the conditions set forth in
Section 3(b) (and the Investor’s failure to waive such unsatisfied
conditions(s)), the Investor shall have the option to terminate this Agreement
at the close of business on such date (the “Termination Date”)
without liability to the Company.  Upon such termination, and except
for Sections 6(a), 8, 13, 17 and 19 (which shall survive the Termination Date),
the terms hereof shall be null and void and the parties shall continue to comply
with all terms and conditions of the Transaction Documents, as in effect prior
to the execution of this Agreement.

       

      8. Conversion
Price.  The parties hereto acknowledge and agree that the
Conversion Price reflected in the Conversion Notice shall (i) only be the
Conversion Price for purposes of the conversion contemplated hereby and (ii) not
be deemed (by virtue of the execution of this Agreement) to be the Conversion
Price for any other conversion that may occur following the date
hereof.  For the avoidance of doubt, by execution of this Agreement,
the parties hereto do not waive any and all rights that they may have pursuant
to, or terms or provisions set forth in, the 2008 Note relating to any
adjustments to the Conversion Price.

       

      9. Currency.  Unless
otherwise indicated, all dollar amounts referred to in this Agreement are in
United States Dollars (“US
Dollars”).  All amounts owing under this Agreement shall be
paid in US Dollars.

       

      10. Entire Agreement.  This Agreement,
together with any exhibits hereto, represents the final and complete agreement
of the Parties hereto with respect to the subject matter hereof and shall be
binding upon, and inure to the benefit of, the Parties hereto and their
respective successors, heirs, representatives and assigns.

       

      11. Third Party
Beneficiaries.  Each person or entity in favor of whom a waiver
or release has been granted pursuant to the terms of this Agreement shall be
considered a third party beneficiary of this Agreement and shall be entitled to
enforce all provisions of this Agreement running in favor of such person or
entity.

       

       

      
        
          
          

        

        
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      12. Waivers and
Amendments.  The waiver by any
Party of a breach of any provision of this Agreement shall not operate or be
construed as a waiver of any subsequent breach, whether or not
similar.  This Agreement may be amended, modified or supplemented only
by a written instrument executed by the Parties.

       

      13. Expenses.  Each
of the parties hereto shall pay its own costs and expenses (including, without
limitation, attorneys’ fees) incurred in connection with or relating to the
preparation, negotiation and execution of this Agreement or the consummation of
the transactions contemplated hereby; provided, however, the Company shall pay
any and all transfer, stamp and similar taxes that may be payable with respect
to the issuance and delivery of Common Stock upon the contemplated conversion
and any other costs and expenses required of it pursuant to the Transaction
Documents.

       

      14. Notices.  All
notices, requests, consents, demands, and other communications to be given or
delivered under or by reason of the provisions of this Agreement shall be in
writing, shall be personally delivered or sent by facsimile transmission,
overnight courier or certified mail and shall be deemed to have been duly given
when received.

       

      Notices
to the Company shall be addressed and delivered to:

       

      China
VoIP & Digital Telecom Inc.

      11th
Floor No.11 Building, Shuntai Square, No.2000 Shunhua Rd, High-tech Industrial
Development Zone, Jinan,China 250101

      Telephone:    +86-531-55585742    

      Facsimile:       +86-531-8887-6660

      Attention:      Li
Kunwu, Chief Executive Officer

       

      or to
such other person or at such other place as the Company may from to time furnish
to the other Parties in writing.

       

      with a
copy to:

       

      The Crone Law Group

      San
Francisco Office:

      101
Montgomery Street, Suite 1950, San Francisco, CA 94104

      Telephone:
415 955-8900

      Facsimile: 415
955-8910

      Attention:
Ryan Nail

       

       

      
        
          
          

        

        
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      Notices
to the Investor shall be addressed and delivered to:

       

      Castlerigg
Master Investments Ltd.

      c/o
Sandell Asset Management

      40 West
57th
Street, 26th
Floor

      New York,
NY 10019

      Telephone: 212-603-5700

      Facsimile:    212-603-5710

      Attention:  Matthew
Pliskin

       

      with a
copy to:

       

      Winston
& Strawn LLP

      200 Park
Avenue

      New York,
NY 10166-4193

      Facsimile:  (212)
294-4700

      Attention:  Bradley
C. Vaiana, Esq.

       

      or to
such other person or at such other place as the Investor may from to time
furnish to the other Parties in writing.

       

      15. Titles and
Headings.  The section
headings contained in this Agreement are solely for convenience of reference and
shall not affect the meaning or interpretation of this Agreement or of any term
or provision hereof.

       

      16. Counterparts.  This
Agreement may be executed in two (2) or more counterparts (delivery of which may
be by facsimile or via email as a portable document format (.pdf)), each of
which will be deemed an original, and it will not be necessary in making proof
of this Agreement or the terms of this Agreement to produce or account for more
than one (1) of such counterparts.

       

      17. Severability.  If
any provision of this Agreement is prohibited by law or otherwise determined to
be invalid or unenforceable by a court of competent jurisdiction, the provision
that would otherwise be prohibited, invalid or unenforceable shall be deemed
amended to apply to the broadest extent that it would be valid and enforceable,
and the invalidity or unenforceability of such provision shall not affect the
validity of the remaining provisions of this Agreement so long as this Agreement
as so modified continues to express, without material change, the original
intentions of the parties as to the subject matter hereof and the prohibited
nature, invalidity or unenforceability of the provision(s) in question does not
substantially impair the respective expectations or reciprocal obligations of
the Parties or the practical realization of the benefits that would otherwise be
conferred upon the Parties.  The Parties will endeavor in good faith
negotiations to replace the prohibited, invalid or unenforceable provision(s)
with a valid provision(s), the effect of which comes as close as possible to
that of the prohibited, invalid or unenforceable provision(s).

       

      18. Further
Assurances.  The Parties agree
to cooperate at all times from and after the date hereof with respect to any of
the matters described herein, and to execute such further assignments, releases,
assumptions, notifications or other documents or to take any other necessary
actions as may be reasonably requested for the purpose of giving effect to,
evidencing or giving notice of the transactions contemplated by this
Agreement.

       

       

      
        
          
          

        

        
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      19. Governing Law; Jurisdiction;
Jury Trial.  All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by
the internal laws of the State of New York, without giving effect to any choice
of law or conflict of law provision or rule (whether of the State of New York or
any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the State of New York.  Each Party hereby
irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in The City of New York, Borough of Manhattan, for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is brought in an inconvenient forum or that the
venue of such suit, action or proceeding is improper.  Each Party
hereby irrevocably waives personal service of process and consents to process
being served in any such suit, action or proceeding by mailing a copy thereof to
such party at the address for such notices to it under this Agreement and agrees
that such service shall constitute good and sufficient service of process and
notice thereof.  The Company hereby reaffirms the appointment of
Empire Stock Transfer, Inc., with offices at 2470 Saint Rose Parkway, Suite 304,
Henderson, Nevada 89074, as its agent for service of process in New
York.  Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law.  EACH PARTY HEREBY IRREVOCABLY WAIVES
ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE
ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF
THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

       

       

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      IN WITNESS WHEREOF, the
Investor and the Company have caused this Securities Redemption and Pay-off
Agreement to be duly executed as of the day and year first written
above.

       

      COMPANY

       

       

      CHINA
VOIP & DIGITAL TELECOM INC.

       

       

      By:_________________________________

      Name:  Li
Kunwu

      Title:    Chief
Executive Officer

       

       

       

      INVESTOR

       

       

      CASTLERIGG
MASTER INVESTMENTS LTD.

       

       

       

      By:__________________________________

      Name:

      Title:

       

       

       

       

      
        Signature
Page to Securities Redemption and Pay-off Agreement

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

       

       

      Exhibit
A

       

      Wiring
Instructions

       

      [Name]

      ABA
[______]

      Credit
A/C No. [_______]

      Reference:
[Name of Account]

      Attention:
[_________]

       

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      Exhibit
B

       

      Conversion
Notice

       

      (See
attached)

       

       

       

       

       

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      Exhibit
C

       

      Certificates
of Pledged Shares

      

      
        	
                Pledgor

              	
                Name of Issuer

              	
                Number of shares

              	
                % of Shares

              	
                Class

              	
                Certificate No.

              
	
                Li
      Kun Wu

              	
                China
      VoIP & Digital Telecom, Inc.

              	
                6,200,000

                 

              	
                11.71%

              	
                Common
      Stock

                 

              	
                1503

              
	
                Wang
      Qing Hua

              	
                China
      VoIP & Digital Telecom, Inc.

              	
                6,200,000

              	
                11.71%

              	
                Common
      Stock

                 

              	
                1504

              
	
                Yin
      Yi Xu

              	
                China
      VoIP & Digital Telecom, Inc.

              	
                2,880,000

              	
                5.44%

              	
                Common
      Stock

                 

              	
                1505

              

      

       

       

       

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      Exhibit
D

       

      Certificate
of Pledged Trademarks

       

      

      
        	
                Certificate Name

              	
                Certificate No.

              	
                Date of Registration

              	
                Pledgor

              	
                Pledged Value

              
	
                商标专用权质押登记证

              	
                商标质字[2009]第076号

              	
                July
      7, 2009

              	
                Jinan
      Yinquan Technology Co.,Ltd.

              	
                RMB
      809,900ex10-1.htm

    
 

    Exhibit
10.1

     

    EXECUTION
COPY

     

     

    Voting
Agreement

     

     

    This
VOTING AGREEMENT (this “Agreement”), dated as
of January 8, 2010, by and among Hillenbrand, Inc., an Indiana corporation
(“Parent”),
Krusher Acquisition Corp., a New Jersey corporation and a direct, wholly-owned
Subsidiary of Parent (“Merger Sub”), and
each of the Persons listed on Annex I hereto (each,
a “Shareholder”).  Capitalized
terms used but not defined herein have the meanings assigned to them in the
Agreement and Plan of Merger dated as of the date of this Agreement (the “Merger Agreement”) by
and among Parent, Merger Sub and Krusher, a New Jersey corporation (the “Company”).

     

     

    Recitals

     

     

    WHEREAS,
as of the date hereof, each Shareholder is the beneficial owner (as defined in
Rule 13d-3 under the Exchange Act) of the number of Shares set forth opposite
such Shareholder’s name under the heading “Shares Beneficially Owned” on Annex I (all such
beneficially owned Shares which are outstanding as of the date hereof and which
may hereafter be acquired pursuant to acquisition by purchase, stock dividend,
distribution, stock split, split-up, combination, merger, consolidation,
reorganization, recapitalization, combination or similar transaction, being
referred to herein as the “Subject Shares;”
provided that “Subject Shares” shall
not include (i) Shares beneficially owned in the form of Company Options or
Company RSUs, but only to the extent such Shares remain unexercised or unvested,
as the case may be or (ii) those Shares specifically identified on Annex I as “Excluded
Shares”);

     

     

    WHEREAS,
concurrently with the execution and delivery of this Agreement, Parent, Merger
Sub and the Company are entering into the Merger Agreement, a copy of which has
been made available to each Shareholder, which provides for, among other things,
the merger of Merger Sub with and into the Company (the “Merger”), upon the
terms and subject to the conditions set forth therein; and

     

     

    WHEREAS,
as a condition to Parent’s and Merger Sub’s willingness to enter into the Merger
Agreement, Parent and Merger Sub have requested that each Shareholder, and in
order to induce Parent and Merger Sub to enter into the Merger Agreement, each
Shareholder has agreed to, enter into this Agreement.

     

     

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

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

     

     

    ARTICLE
I

     

    AGREEMENTS OF EACH
SHAREHOLDER

     

    1.1           Voting of Subject
Shares.  Each
Shareholder irrevocably and unconditionally agrees that such Shareholder shall,
at any meeting (whether annual or special and whether or not an adjourned or
postponed meeting) of the holders of Shares, however called (each, a “Company Shareholders
Meeting”):

     

     

    (a)         be
present, in person or represented by proxy, or otherwise cause such
Shareholder’s Subject Shares to be counted for purposes of determining the
presence of a quorum at such meeting (to the fullest extent that such Subject
Shares may be counted for quorum purposes under applicable Law);
and

     

     

    (b)         vote
(or cause to be voted) with respect to all such Shareholder’s Subject Shares to
the fullest extent that such Subject Shares are entitled to be voted at the time
of any vote:

     

     

    (i)      in
favor of (1) the approval of the Merger Agreement, (2) without limitation of the
preceding clause (1), the approval of any proposal to adjourn or postpone the
Company Shareholders Meeting to a later date if there are not sufficient votes
for approval of the Merger Agreement on the date on which the Company
Shareholders Meeting is held and (3) any other matter necessary for consummation
of the transactions contemplated by the Merger Agreement, which is considered at
any such Company Shareholders Meeting; and

     

     

    (ii)                 against
(1) any action (including any amendment to the Company’s certificate of
incorporation or bylaws, as in effect on the date hereof), agreement or
transaction that would reasonably be expected to frustrate the purposes of,
impede, hinder, interfere with, nullify, prevent, delay or adversely affect, in
each case in any material respect, the consummation of the transactions
contemplated by the Merger Agreement, (2) any Takeover Proposal and any action
in furtherance of any Takeover Proposal, (3) any merger, acquisition, sale,
consolidation, reorganization, recapitalization, extraordinary dividend,
dissolution, liquidation or winding up of or by the Company, or any other
extraordinary transaction involving the Company (other than the Merger), (4) any
action, proposal, transaction or agreement that would reasonably be expected to
result in a breach, in any material respect, of any covenant, representation or
warranty or any other obligation or agreement of such Shareholder under this
Agreement and (5) any other action, proposal, transaction or agreement that
would reasonably be expected to result in the failure of any condition to the
Merger to be satisfied.

     

     

    1.2           No Proxies for or Liens on
Subject Shares.

     

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

     

     

    (a)         Except
as provided hereunder, during the term of this Agreement, each Shareholder shall
not (nor permit any Person under such Shareholder’s control to), directly or
indirectly, (i) grant any proxies, powers of attorney, rights of first offer or
refusal, or enter into any voting trust or voting agreement or arrangement with
respect to any of such Shareholder’s Subject Shares, (ii) sell (including short
sell), assign, transfer, tender, pledge, encumber, grant a participation
interest in, hypothecate or otherwise dispose of (including by gift) (each, a
“Transfer”) any
of such Shareholder’s Subject Shares, (iii) otherwise permit any Liens to be
created on any of such Shareholder’s Subject Shares or (iv) enter into any
Contract with respect to the direct or indirect Transfer of any of such
Shareholder’s Subject Shares.  No Shareholder shall, and shall not
permit any Person under such Shareholder’s control or any of such Shareholder’s
or such Person’s respective representatives to, seek or solicit any such
Transfer or any such Contract.  Without limiting the foregoing, each
Shareholder shall not take any other action that would in any way restrict,
limit or interfere in any material respect with the performance of such
Shareholder’s obligations hereunder or the transactions contemplated by the
Merger Agreement.

     

     

    (b)         Notwithstanding
the foregoing, each Shareholder shall have the right to Transfer all or any
portion of his, her or its Subject Shares to a Permitted Transferee of such
Shareholder if and only if such Permitted Transferee shall have agreed in
writing, in a manner reasonably acceptable in form and substance to Parent, (i)
to accept such Subject Shares subject to the terms and conditions of this
Agreement and (ii) to be bound by this Agreement and to agree and acknowledge
that such Person shall constitute a Shareholder for all purposes of this
Agreement.  “Permitted Transferee”
means, with respect to any Shareholder, (A) any other Shareholder, (B) a spouse,
lineal descendant or antecedent, brother or sister, adopted child or grandchild
or the spouse of any child, adopted child, grandchild or adopted grandchild of
such Shareholder, (C) any trust, the trustees of which include only the Persons
named in clauses (A) or (B) and the beneficiaries of which include only the
Persons named in clauses (A) or (B), or (D) if such Shareholder is a trust, the
beneficiary or beneficiaries authorized or entitled to receive distributions
from such trust.

     

     

    (c)         Each
Shareholder hereby authorizes Parent and Merger Sub to direct the Company to
impose stop orders to prevent the Transfer of any Subject Shares on the books of
the Company in violation of this Agreement.

     

     

    1.3           Documentation and
Information.  Each Shareholder (a) consents to and authorizes
the publication and disclosure by Parent of such Shareholder’s identity and
holdings of Subject Shares, the nature of such Shareholder’s commitments,
arrangements and understandings under this Agreement and any other information,
in each case, that Parent reasonably determines is required to be disclosed by
applicable Law in any press release or any other disclosure document in
connection with the Merger and the transactions contemplated by the Merger
Agreement and (b) agrees to promptly give to Parent any information it may
reasonably require for the preparation of any such disclosure
documents.  Each Shareholder agrees to promptly notify Parent of any
required corrections with respect to any information supplied by such
Shareholder

     

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

    

     

    specifically
for use in any such disclosure document, if and to the extent that any such
information shall have become false or misleading in any material
respect.

     

     

    1.4           Irrevocable
Proxy.  Each Shareholder hereby revokes (or agrees to cause to
be revoked) any proxies that such Shareholder has heretofore granted with
respect to such Shareholder’s Subject Shares.  Each Shareholder hereby
irrevocably appoints Parent, and any individual designated in writing by Parent,
and each of them individually, as attorney-in-fact and proxy for and on behalf
of such Shareholder, for and in the name, place and stead of such Shareholder,
to: (a) attend any and all Company Shareholders Meetings, (b) vote, express
consent or dissent or issue instructions to the record holder to vote such
Shareholder’s Subject Shares in accordance with the provisions of Section 1.1 at any
and all Company Shareholders Meetings or in connection with any action sought to
be taken by written consent of the shareholders of the Company without a meeting
and (c) grant or withhold, or issue instructions to the record holder to grant
or withhold, consistent with the provisions of Section 1.1, all
written consents with respect to the Subject Shares at any and all Company
Shareholders Meetings or in connection with any action sought to be taken by
written consent without a meeting.  Parent (or its designee) agrees
not to exercise the proxy granted herein for any purpose other than the purposes
described in this Agreement.  The foregoing proxy shall be deemed to
be a proxy coupled with an interest, is irrevocable (and as such shall survive
and not be affected by the death, incapacity, mental illness or insanity of such
Shareholder, as applicable) until the termination of the Merger Agreement and
shall not be terminated by operation of Law or upon the occurrence of any other
event other than the termination of this Agreement pursuant to Section
4.2.  Each Shareholder authorizes such attorney and proxy to
substitute any other Person to act hereunder, to revoke any substitution and to
file this proxy and any substitution or revocation with the secretary of the
Company.  Each Shareholder hereby affirms that the proxy set forth in
this Section
1.4 is given in connection with and granted in consideration of and as an
inducement to Parent and Merger Sub to enter into the Merger Agreement and that
such proxy is given to secure the obligations of the Shareholder under Section 1.1.

     

     

    1.5           Notices of Certain
Events.  Each Shareholder shall notify Parent of any
development occurring after the date hereof that causes, or that would
reasonably be expected to cause, any breach of any of the representations and
warranties of such Shareholder set forth in Article
II.

     

     

    1.6           No Solicitations; Other
Offers.  Each Shareholder agrees to comply with the obligations
imposed on the Company’s Representatives pursuant to Section 5.3 of the
Merger Agreement as if a party thereto.

     

     

    1.7           Further
Assurances.  Each Shareholder agrees to execute and deliver, or
cause to be executed and delivered, all further documents and instruments as
Parent or Merger Sub shall reasonably request and use their respective
commercially reasonable efforts to take, or cause to be taken, all actions and
to do, or cause to be done, all things necessary, proper or advisable under
applicable Laws and regulations, to perform their respective obligations under
this Agreement.

     

    

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    

     

     

    ARTICLE
II

     

    REPRESENTATIONS AND
WARRANTIES OF EACH SHAREHOLDER

     

     

    Each
Shareholder hereby, severally and not jointly, represents and warrants to Parent
and Merger Sub only as to himself, herself or itself (as the case may be) as
follows:

     

    2.1           Organization.  Such
Shareholder, if not an individual, is a trust, duly organized and validly
existing and in good standing under the laws of the jurisdiction of its
organization.  Such Shareholder, if an individual, is a resident of
the state set forth below such Shareholder’s signature on the signature page
hereto.

     

    2.2           Authorization.  If
such Shareholder is not an individual, it has full trust power and authority to
execute and deliver this Agreement and to perform its obligations hereunder. If
such Shareholder is an individual, he or she has full legal capacity, right and
authority to execute and deliver this Agreement and to perform his or her
obligations hereunder.  If such Shareholder is not an individual, the
execution, delivery and performance by such Shareholder of this Agreement and
the consummation by such Shareholder of the transactions contemplated hereby
have been duly authorized by all necessary action on the part of such
Shareholder.

     

    2.3           Due Execution and Delivery;
Binding Agreement.  This
Agreement has been duly executed and delivered by such Shareholder and
constitutes a valid and legally binding obligation of such Shareholder,
enforceable against such Shareholder in accordance with its terms, subject to
the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar Laws relating to or affecting creditors’ rights
generally and general equitable principles (whether considered in a proceeding
in equity or at Law).  If such Shareholder is married and any of the
Subject Shares constitute community property or spousal approval is otherwise
necessary for this Agreement to be legal, binding and enforceable, this
Agreement has been duly authorized, executed and delivered by, and constitutes
the legal, valid and binding obligation of, such Shareholder’s spouse,
enforceable in accordance with its terms, subject to the effects of bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and other similar
Laws relating to or affecting creditors’ rights generally and general equitable
principles (whether considered in a proceeding in equity or at
Law).  If such Shareholder is an individual, such Shareholder has not
executed this Agreement within the state of New York.

     

    2.4           No
Violation.

     

     

    (a)         The
execution and delivery of this Agreement by such Shareholder does not, and the
performance by such Shareholder of such Shareholder’s obligations hereunder will
not, (i) if such Shareholder is not an individual, contravene, conflict with, or
result in any violation or breach of any provision of its organizational
documents, (ii) assuming compliance with Section 2.4(b),
contravene, conflict with or result in a violation nor breach of any provision
of applicable Law or Order of any Governmental Entity with competent
jurisdiction or (iii) constitute a default, or an event that, with or without
notice or lapse of time or both, could become a default, under, or cause or
permit the termination, cancellation, acceleration or other

     

    

    
      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

    

     

    change
of any right or obligation or the loss of any benefit which such Shareholder is
entitled under any provision of any Contract binding upon such
Shareholder.

     

     

    (b)         No
consent, approval, order, authorization or permit of, or registration,
declaration or filing with or notification to, any Governmental Entity or any
other Person is required by or with respect to such Shareholder in connection
with the execution and delivery of this Agreement by such Shareholder or the
performance by such Shareholder of his, her or its obligations hereunder, except
for the filing with the SEC of any Schedules 13D or 13G or amendments to
Schedules 13D or 13G and filings under Section 16 of the Exchange Act as may be
required in connection with this Agreement and the transactions contemplated
hereby.

     

    2.5           Ownership of Subject
Shares.  As
of the date hereof, such Shareholder is, and (except with respect to any Subject
Shares Transferred in accordance with Section 1.2 hereof)
at all times during the term of this Agreement will be, the beneficial owner of,
and has, and will have, good and marketable title to, such Shareholder’s Subject
Shares with no restrictions on such Shareholder’s rights of disposition
pertaining thereto, except as may be otherwise set forth on Annex I
hereto.  Other than as provided in this Agreement or as set forth on
Annex I hereto,
such Shareholder has, and (except with respect to any Subject Shares Transferred
in accordance with Section 1.2 hereof)
at all times during the term of this Agreement will have, with respect to such
Shareholder’s Subject Shares, the sole power, directly or indirectly, to vote,
dispose of, exercise and convert, as applicable, such Subject Shares, and to
demand or waive any appraisal rights or issue instructions pertaining to such
Subject Shares with respect to the matters set forth in this Agreement, in each
case with no limitations, qualifications or restrictions on such rights, and, as
such, has, and (except with respect to any Subject Shares Transferred in
accordance with Section 1.2 hereof)
at all times during the term of this Agreement will have, the complete and
exclusive power to, directly or indirectly (a) issue (or cause the issuance of)
instructions with respect to the matters set forth in Section 1.4
hereof  and (b) agree to all matters set forth in this
Agreement.  Except to the extent of any Subject Shares acquired after
the date hereof (which shall become Subject Shares upon that acquisition) or as
set forth on Annex
I hereto, the number of Shares set forth on Annex I opposite the
name of such Shareholder are the only Shares beneficially owned by such
Shareholder as of the date of this Agreement.  Other than the Subject
Shares and any Shares that are the subject of unexercised Company Stock Options
and any Company RSUs held by such Shareholder (the number of which is set forth
opposite the name of such Shareholder on Annex I) or as set
forth on Annex
I hereto, such Shareholder does not own any Shares or any options to
purchase or rights to subscribe for or otherwise acquire any securities of the
Company and has no interest in or voting rights with respect to any securities
of the Company.  Except as may be required pursuant to award
agreements relating to Unvested Restricted Stock, there are no agreements or
arrangements of any kind, contingent or otherwise, to which such Shareholder is
a party obligating such Shareholder to Transfer or cause to be Transferred, any
of such Shareholder’s Subject Shares.  No Person has any contractual
or other right or obligation to purchase or otherwise acquire any of such
Shareholder’s Subject Shares.

     

    2.6           No Other
Proxies.  None
of such Shareholder’s Subject Shares are subject to any voting trust or other
agreement or arrangement with respect to the voting of such Shares, except as
provided hereunder.

     

    

    
      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

    

    

     

    2.7           Absence of
Litigation.  With
respect to such Shareholder, as of the date hereof, there is no action, suit,
investigation or proceeding pending against, or, to the knowledge of such
Shareholder, threatened against, or otherwise affecting, such Shareholder or any
of his, her or its properties or assets (including such Shareholder’s Subject
Shares) that could reasonably be expected to impair in any material respect the
ability of such Shareholder to perform his, her or its obligations hereunder or
to consummate the transactions contemplated hereby on a timely
basis.

     

    2.8           Opportunity to Review;
Reliance.  Such
Shareholder has had the opportunity to review the Merger Agreement and this
Agreement with counsel of his, her or its own choosing.  Such
Shareholder understands and acknowledges that Parent and Merger Sub are entering
into the Merger Agreement in reliance upon such Shareholder’s execution,
delivery and performance of this Agreement.

     

    2.9           Finders’
Fees.  No
investment banker, broker, finder or other intermediary is entitled to a fee or
commission from Parent, Merger Sub or the Company in respect of this Agreement
based upon any arrangement or agreement made by or on behalf of such Shareholder
in his, her or its capacity as such.

     

     

    ARTICLE
III

     

    REPRESENTATIONS AND
WARRANTIES OF PARENT AND MERGER SUB

     

    Each
of Parent and Merger Sub hereby, jointly and severally, represent and warrant to
the Shareholders that:

     

    3.1           Organization.  Parent
and Merger Sub are each duly organized, validly existing and in good standing
under the laws of its jurisdiction of organization.

     

    3.2           Authorization.  Each
of Parent and Merger has full corporate power and authority to execute and
deliver this Agreement and to perform its obligations hereunder.  The
execution, delivery and performance by Parent and Merger Sub of this Agreement
and the consummation by Parent and Merger Sub of the transactions contemplated
hereby have been duly authorized by all necessary action on the part of Parent
and Merger Sub.

     

    3.3           Due Execution and Delivery;
Binding Agreement.  This
Agreement has been duly executed and delivered by each of Parent and Merger Sub
and constitutes a valid and legally binding obligation of Parent and Merger Sub,
enforceable against Parent and Merger Sub in accordance with its terms, subject
to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar Laws relating to or affecting creditors’ rights
generally and general equitable principles (whether considered in a proceeding
in equity or at Law).

     

    

    
      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

    

    

     

     

    ARTICLE
IV

     

    MISCELLANEOUS

     

    4.1           Notices.  All
notices, requests and other communications to any party hereunder shall be in
writing (including facsimile transmission) and shall be given, (i) if to Parent
or Merger Sub, in accordance with the provisions of the Merger Agreement and
(ii) if to a Shareholder, to such Shareholder’s address or facsimile number set
forth on a signature page hereto, or to such other address or facsimile number
as such party may hereafter specify for the purpose by notice to each other
party hereto.

     

    4.2           Termination.  This
Agreement shall terminate automatically, without any notice or other action by
any Person, upon the earlier of (i) termination of the Merger Agreement and (ii)
the Effective Time.  Upon termination of this Agreement, no party
shall have any further obligations or liabilities under this Agreement; provided, however, that (x) nothing set
forth in this Section
4.2 shall relieve any party for liability arising from fraud or a willful
and material breach of this Agreement and (y) the provisions of this Article IV shall
survive any such termination of this Agreement.

     

    4.3           Amendments and
Waivers.  Any
provision of this Agreement may be amended or waived if such amendment or waiver
is in writing and is signed, in the case of an amendment, by each party to this
Agreement or, in the case of a waiver, by each party against whom the waiver is
to be effective.  No failure or delay by any 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 other right, power or
privilege.  Except as otherwise provided herein, the rights and
remedies of the parties hereunder are cumulative and are not exclusive of any
rights or remedies which they would otherwise have hereunder.

     

    4.4           Expenses.  Whether
or not the Merger is consummated, all costs and expenses incurred in connection
with this Agreement shall be paid by the party incurring or required to incur
such cost or expenses.

     

    4.5           Binding Effect;
Assignment.  The
provisions of this Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and
assigns.  No party may assign, delegate or otherwise transfer any of
its rights or obligations under this Agreement without the consent of each other
party hereto, except that (a) Parent may transfer and assign it rights to one or
more individuals as provided in Section 1.4 and (b)
each of Parent and Merger Sub may transfer or assign its rights and obligations
under this Agreement, in whole or from time to time in part, to one or more of
its Affiliates at any time; provided, that such transfer
or assignment shall not relieve Parent or Merger Sub of any of its obligations
hereunder.

     

    4.6           GOVERNING LAW AND VENUE;
WAIVER OF JURY TRIAL.

     

     

    (a)         This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New Jersey, without giving effect to any choice or conflict of law
provision or rule (whether of the State of New Jersey or any other jurisdiction)
that would cause

     

    

    
      
        
           

        

        
          8

          
            

          

        

        
           

        

      

    

    

     

    the
application of the laws of any jurisdiction other than the State of New
Jersey.  The parties hereby irrevocably submit to the exclusive
jurisdiction of the courts of the State of New Jersey and the Federal courts of
the United States of America located in the State of New Jersey and the City of
Chicago, Illinois in respect of all matters arising out of or relating to this
Agreement the interpretation and enforcement of the provisions of this
Agreement, and in respect of the transactions contemplated hereby, and hereby
waive, and agree not to assert, as a defense in any action, suit or proceeding
for the interpretation or enforcement hereof or of any such document, that it is
not subject thereto or that such action, suit or proceeding may not be brought
or is not maintainable in said courts or that the venue thereof may not be
appropriate or that this Agreement or any such document may not be enforced in
or by such courts, and the parties hereto irrevocably agree that all claims with
respect to such action or proceeding shall be heard and determined exclusively
in such State or Federal court.  The parties hereby consent to and
grant any such court jurisdiction over the person of such parties solely for
such purpose and over the subject matter of such dispute and agree that mailing
of process or other papers in connection with any such action or proceeding in
the manner provided in Section 4.1 or in
such other manner as may be permitted by Law shall be valid and sufficient
service thereof.

     

     

    (b)         EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS
AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE
EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH
PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT.  EACH PARTY CERTIFIES AND ACKNOWLEDGES
THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH PARTY
UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY
MAKES THIS WAIVER VOLUNTARILY AND (iv) EACH PARTY HAS BEEN INDUCED TO ENTER INTO
THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
THIS SECTION
4.6(b).

     

    4.7           Counterparts;
Effectiveness.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed to be an original but all of which shall constitute one and the same
instrument.  This Agreement shall become effective when each party
hereto shall have received counterparts thereof signed and delivered (by
telecopy or otherwise) by the other parties hereto.

     

    4.8           Entire Agreement; Third
Party Beneficiaries.  This
Agreement constitutes the entire agreement, and supersedes all prior agreements
and understandings, both written and oral, between the parties with respect to
the subject matter hereof.  Nothing in this Agreement, express or
implied, is intended to or shall confer upon any Person other than the parties
and their respective successors and permitted assigns any legal or equitable
right, benefit or remedy of any nature under or by reason of this
Agreement.

     

    

    
      
        
           

        

        
          9

          
            

          

        

        
           

        

      

    

    

    

     

    4.9           Severability.  Whenever
possible, each provision or portion of any provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable Law,
but if any term or other provision of this Agreement is invalid, illegal or
incapable of being enforced by any Law or public policy, all other terms and
provisions of this Agreement shall nevertheless remain in full force and
effect.  Notwithstanding the foregoing, upon such determination that
any term or other provision is invalid, illegal or incapable of being enforced,
the parties shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible in an
acceptable manner in order that the transactions contemplated hereby are
consummated as originally contemplated to the greatest extent
possible.

     

    4.10           Specific
Performance.  The
parties hereto agree that each of Parent and Merger Sub would be irreparably
damaged in the event that any Shareholder fails to perform any of his, her or
its obligations under this Agreement.  Accordingly, each of Parent and
Merger Sub shall be entitled to an injunction or injunctions to prevent breaches
of this Agreement by any Shareholder and to specific performance of the terms
and provisions hereof in any court of competent jurisdiction, this being in
addition to any other remedy to which they are entitled at Law or in
equity.

     

    4.11           Interpretation.  When
a reference is made in this Agreement to Sections or Articles, such reference
shall be to a Section or Article 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” or
“including” are used in this Agreement, they shall be deemed to be followed by
the words “without limitation,” unless otherwise specified.  The words
“hereby,” “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 words “date hereof” shall
refer to the date of this Agreement.  The word “extent” in the phrase
“to the extent” shall mean the degree to which a subject or other thing extends,
and such phrase shall not mean simply “if.”  The term “or” shall not
be deemed to be exclusive.  All terms defined in this Agreement shall
have the defined meanings when used in any certificate or other document made or
delivered pursuant hereto unless otherwise defined therein.  The words
describing the singular number shall include the plural and vice versa and words
denoting any gender shall include all genders.  References to a Person
are also to its permitted successors and assigns.  The parties have
participated jointly in the negotiation and drafting of this
Agreement.  In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly
by the parties and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any provisions of this
Agreement.

     

    4.12           Capacity as
Shareholder.  Each
Shareholder signs this Agreement solely in such Shareholder’s capacity as a
Shareholder of the Company and not in such Shareholder’s capacity as a director,
officer or employee of the Company or any of its Subsidiaries or in such
Shareholder’s capacity as a trustee or fiduciary of any employee benefit plan or
trust.  Nothing herein shall in any way restrict a director or officer
of the Company in the exercise of his or her fiduciary duties as a director or
officer of the Company or in his or her capacity as a trustee or fiduciary of
any employee benefit plan or trust or prevent or be construed to create any
obligation on the part of any director or officer of the Company or any trustee
or fiduciary of any

     

    

    
      
        
           

        

        
          10

          
            

          

        

        
           

        

      

    

     

    

    employee
benefit plan or trust from taking any action in his or her capacity as such
director, officer, trustee or fiduciary.

     

     

    [Signature
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    IN
WITNESS WHEREOF, Parent, Merger Sub and the Shareholders have caused this
Agreement to be duly executed and delivered as of the date first written
above.

     

    
      
        	 
      	 
      	
                Hillenbrand,
      Inc.

              
	 
      
	 
      
	 
      	 
      	
                By:

              	
                /s/
      Kenneth A. Camp

              	 
      
	 
      	 
      	 
      	
                Name:

              	
                Kenneth
      A. Camp

              
	 
      	 
      	 
      	
                Title:

              	
                President
      and Chief Executive

                Officer

              
	 
      
	 
      
	 
      
	 
      	 
      	
                Krusher
      Acquisition Corp.

              
	 
      
	 
      
	 
      	 
      	
                By:

              	
                /s/
      John R. Zerkle

              	 
      
	 
      	 
      	 
      	
                Name:

              	
                John
      R. Zerkle

              
	 
      	 
      	 
      	
                Title:

              	
                Vice
      President and Secretary

              

      

    

     

     

     

    
 

     

     

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              Shareholder

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	/s/ Kevin C.
      Bowen	 
      
	 
      	 
      	
              Name: 
      Kevin C. Bowen

            
	 	 	Address:
      

      
      

    

     

     

     

     

     

     

     

    
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              Shareholder

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	/s/
      Edward B. Cloues, II	
               

            
	 
      	 
      	
              Name:
      Edward B. Cloues, II

            
	 
      	 
      	
              Address:

            	
               

            

    

     

     

     

     

     

     

     

    
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              Shareholder

            
	 
      	 
      	 
      	 
      
	 	 	 	 
	 
      	 
      	
              /s/
      Norman Cohen

            	 
      
	 
      	 
      	
              Name:
      Norman Cohen

            

      
        	 
      	 
      	
                Address:  
      

              	
                 

              

      

    

     

     

     

     

     

     

     

    
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              Shareholder

            
	 
      	 
      	 
      	 
      
	 	 	 	 
	 
      	 
      	
              /s/
      Robert A. Engel

            	 
      
	 
      	 
      	
              Name:
      Robert A. Engel

            

      
        	 
      	 
      	
                Address:

              	
                 

              

      

    

     

     

     

     

     

     

     

    
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              Shareholders

            
	 
      	 
      	 
      	 
      
	 	 	 	 
	 
      	 
      	
              /s/
      Lukas Guenthardt

            	 
      
	 
      	 
      	
              Name:
      Lukas Guenthardt

            

      
        	 
      	 
      	
                Address:

              	
                 

              
	 
      	 
      	 
      	
                 

              
	 
      	 
      	 
      	 
      
	 	 	 	 

      

       

      	 
      	 
      	
              /s/
      Megan C. Guenthardt

            	 
      
	 
      	 
      	
              Name:
      Megan C. Guenthardt

            

      
        	 
      	 
      	
                Address:

              	
                 

              
	 
      	 
      	 
      	
                 

              

      

    

     

     

     

     

     

     

     

    
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              Shareholder

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
              /s/
      Edward T. Hurd

            	
               

            
	 
      	 
      	
              Name:
      Edward T. Hurd

            

      
        	 
      	 
      	
                Address:

              	
                 

              
	 
      	 
      	 
      	
                 

              

      

    

    

     

     

     

     

     

     

    
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              Shareholder

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
              /s/
      Donald W. Melchiorre

            	
               

            
	 
      	 
      	
              Name:
      Donald W. Melchiorre

            

      
        	 
      	 
      	
                Address:

              	
                 

              
	 
      	 
      	 
      	
                 

              

      

    

     

     

     

     

     

     

     

    
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              Shareholder

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
              /s/
      Richard J. Pinola

            	
               

            
	 
      	 
      	
              Name:
      Richard J. Pinola

            

      
        	 
      	 
      	
                Address:

              	
                 

              
	 
      	 
      	 
      	
                 

              

      

    

    

     

     

     

     

     

     

    
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              Shareholder

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
              /s/
      Robert E. Wisniewski

            	
               

            
	 
      	 
      	
              Name:
      Robert E. Wisniewski

            

      
        	 
      	 
      	
                Address:

              	
                 

              
	 
      	 
      	 
      	
                 

              

      

    

    

     

     

     

     

    
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    Annex
I

    

    
      	
              Shareholder

            	
              Shares

              Beneficially
      Owned

            	
              Subject
      Shares Outstanding as of January 8, 2010

            	
              Company
      Stock Options1

            	
              Company
      RSUs1

            	
              Excluded
      Shares

            
	
              Kevin
      C. Bowen

            	
              30,095

            	
              19,095

            	
              10,000

            	
              1,000

            	 
      
	
              Edward
      B. Cloues, II

            	
              248,487

            	
              213,287

            	
              10,000

            	
              2,000

            	
              23,3002

            
	
              Norman
      Cohen

            	
              4,469

            	
              2,469

            	
              2,000

            	 
      	 
      
	
              Robert
      A. Engel

            	
              12,500

            	
              6,500

            	
              6,000

            	 
      	 
      
	
              Lukas
      Guenthardt

            	
              37,355

            	
              17,3553

            	
              19,000

            	
              1,000

            	 
      
	
              Edward
      T. Hurd

            	
              3,500

            	
              3,500

            	 
      	 
      	 
      
	
              Donald
      W. Melchiorre

            	
              5,500

            	
              4,500

            	 
      	
              1,000

            	 
      
	
              Richard
      J. Pinola

            	
              18,314

            	
              12,314

            	
              6,000

            	 
      	 
      
	
              Robert
      E. Wisniewski

            	
              3,500

            	
              2,500

            	 
      	
              1,000

            	 
      

    

    

     
 

    

      

    

      
      1 The
Shares underlying Company Stock Options and Company RSUs are included in the
“Shares Beneficially Owned” column.

    

      
      2 Mr.
Cloues has shared power to vote or direct the vote, and to dispose or direct the
disposition, of 23,200 Shares that he indirectly beneficially owns pursuant to
powers of attorney granted to him by each of Mrs. Jeanette C. Cloues and Mrs.
Jan W. Beebe.  Also includes 100 Shares Mr. Cloues intends to transfer
to Upper Dublin Lutheran Church.

    

      
      3 Mr.
Guenthardt shares investment and voting power with his wife, Megan C.
Guenthardt, for 11,797 Shares.

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