Exhibit 10.6
VOTING
AGREEMENT
THIS VOTING AGREEMENT is made and entered into
as of this 12 th day of January, 2006 (the “
Agreement ”) by and among Sentinel Technologies,
Inc., a Delaware corporation, (“ STI ”);
Sentinel Operating, L.P., a Texas limited partnership and an
affiliate of LLG (“ Sentinel ”); Tidel
Technologies, Inc., a Delaware corporation (the “
Company ”); Mark K. Levenick; Jerrell G. Clay;
Raymond P. Landry; Stephen P. Griggs; Robert D. Peltier; M. Flynt
Moreland; and Troy D. Richard (each a “ Stockholder
” and collectively, the “ Stockholders
”). Capitalized terms used but not defined herein shall have
the same meanings ascribed thereto in the Purchase Agreement
(defined below).
RECITALS
A.
Contemporaneously with the execution and delivery of this
Agreement, Sentinel, the Company and Tidel Engineering, L.P., a
Delaware limited partnership and an affiliate of the Company
(“ Engineering ”) are entering into an Asset
Purchase Agreement, dated as of the date hereof, as the same may be
amended from time to time, (the “ Purchase Agreement
”), which provides that, upon the terms and subject to the
conditions set forth therein, Sentinel will purchase the assets of
Division from the Company and Engineering (the “
Transaction ”).
B. As of the
date hereof, each Stockholder beneficially owns the number of
shares of common stock, par value $.01 per share, of the Company
set forth opposite such Stockholder’s name on Schedule I
hereto (all such shares so owned and which may hereafter be
acquired by such Stockholder prior to the termination of this
Agreement, whether upon the exercise of options, conversion of
notes, or by any other means of purchase, dividend, acquisition,
distribution or otherwise, being referred to herein as such
Stockholder’s “Shares”).
C. In
connection with the Transaction and pursuant to the terms of the
Purchase Agreement, each Stockholder has agreed to grant STI an
irrevocable proxy to vote the Stockholder’s Shares in favor
of the approval and adoption of (i) the Purchase Agreement and the
transactions contemplated thereby, (ii) the amendment to the
Company’s certificate of incorporation to change the
Company’s name such that it does contain the terms
“Tidel” or “Sentinel” or any derivations
thereof (the “ Amendment ”), and (iii) any
motion for adjournment or postponement of the Parent Stockholder
Meeting to another time or place to permit, among other things,
further solicitation of proxies if necessary to establish a quorum
or to obtain additional votes in favor of the Purchase Agreement
and the transactions contemplated thereby and the Amendment (the
“ Motion ”).
D. As a
condition to their willingness to enter into the Purchase
Agreement, Sentinel has requested that the Stockholders enter into
this Agreement.
E. In order to
induce Sentinel to enter into the Purchase Agreement, the
Stockholders are willing to enter into this Agreement.
NOW, THEREFORE, in consideration of the
foregoing and the mutual covenants and agreements herein contained,
and intending to be legally bound hereby, the parties hereto hereby
agree as follows:
ARTICLE
I
VOTING
AGREEMENT
From the date
hereof until the termination of this Agreement, at any meeting of
the stockholders of the Company, however called, and in any action
by consent of the stockholders of the Company, each Stockholder
shall vote such Stockholder’s Shares (i) in favor of the
approval and adoption of the Purchase Agreement (as amended from
time to time pursuant to the terms thereof) and the transactions
contemplated thereby, (ii) against any other Acquisition Proposal
or any negotiations or discussions with respect to an Acquisition
Proposal and against any proposal for action or agreement that
would result in a breach of any covenant, representation or
warranty or any other obligation or agreement of the Company under
the Purchase Agreement, any change in the directors of the Company,
any change in the present capitalization of the Company or any
amendment to the Company’s Certificate of Incorporation or
Bylaws, which in the case of each of the matters referred to in
this clause (ii) could reasonably be expected to impede, interfere
with, delay, postpone or materially adversely affect the
transactions contemplated by the Purchase Agreement or the
likelihood of such transactions being consummated, (iii) in favor
of the approval and adoption of the Amendment, (iv) in favor of the
approval and adoption of the Motion, and (v) in favor of any other
matter necessary for consummation of the transactions contemplated
by the Purchase Agreement and related agreements which is
considered at any such meeting of Stockholders or in such consent,
and in connection therewith to execute any documents which are
necessary in order to effectuate the foregoing, including the
ability for STI or its nominees to vote such Shares
directly.
Each
Stockholder hereby agrees to deliver to STI a duly executed proxy
in the form attached hereto as Exhibit A concurrently with the
execution and delivery of this Agreement (the “Proxy”),
such Proxy to cover the Shares in respect of which Stockholder is
entitled to (i) vote at each meeting of the stockholders of the
Company (including, without limitation, each written consent in
lieu of a meeting) in favor of the approval and adoption of (a) the
Purchase Agreement and the transactions contemplated thereby, (b)
the Amendment, and (c) the Motion, (ii) to vote against any other
Acquisition Proposal or any negotiations or discussions with
respect to an Acquisition Proposal and against any proposal for
action or agreement that would result in a breach of any covenant,
representation or warranty or any other obligation or agreement of
the Company under the Purchase Agreement, any change in the
directors of the Company, any change in the present capitalization
of the Company or any amendment to the Company’s Certificate
of Incorporation or Bylaws, which in the case of each of the
matters referred to in this clause (ii) could reasonably be
expected to impede, interfere with, delay, postpone or materially
adversely affect the transactions contemplated by the Purchase
Agreement or the likelihood of such transactions being consummated
and (iii) demand that the Secretary or any other appropriate
officer of the Company call a special meeting of the stockholders
of the Company for the purpose of considering the Transaction, the
Purchase Agreement, the Amendment and all other transactions
contemplated thereby. Each Stockholder hereby revokes any and all
prior proxies or powers of attorney given by such Stockholder with
respect to the Shares, other than any proxy given in respect to the
approval of the sale of the Company’s ATM business to NCR
Texas LLC pursuant to the NCR Purchase Agreement. The Proxy shall
automatically terminate and be of no further force or effect upon
any termination of this Agreement.
1.3
No Proxies for or Transfers
of Stockholder Shares.
Except as
contemplated by the terms of this Agreement, from the date hereof
until the termination of this Agreement, each Stockholder hereby
agrees that such Stockholder shall not, without the prior written
consent of STI, which may be withheld in the sole discretion of
STI, directly or indirectly, (i) grant any proxies or enter into
any voting trust or other agreement, arrangement or understanding
with respect to the voting of any such Stockholder’s Shares,
or (ii) sell, assign, transfer, encumber, pledge or otherwise
dispose of, or enter into any contract, option or other agreement,
arrangement or understanding with respect to the direct or indirect
sale, assignment, transfer, encumbrance, pledge or other
disposition of, any of such Stockholder’s Shares. Each
Stockholder hereby agrees such Stockholder shall not seek or
solicit any such sale, assignment, transfer, encumbrance, pledge or
other disposition or any such contract, option or other agreement,
arrangement or understanding and agrees to notify STI promptly (but
in any event, within 24 hours), and to provide all details
requested by STI, if such Stockholder shall be approached or
solicited, directly or indirectly, by any person with respect to
any of the foregoing. Notwithstanding any other provision of this
Section 1.3, each Stockholder may sell or otherwise assign, with or
without consideration, an unlimited amount of such
Stockholder’s Shares to any spouse or member of his immediate
family, or to a custodian, trustee (including a trustee of a voting
trust), executor or other fiduciary for the account of his spouse
or members of his immediate family, or to a trust for himself, or
to a charitable remainder trust, or to any entity that is wholly
owned by members of such Stockholder’s immediate family,
provided that each such transferee or assignee, prior to the
completion of the sale, transfer or assignment, shall have executed
and delivered to STI documents assuming the obligations of such
Stockholder under this Agreement with respect to the transferred
securities, such documents to be satisfactory to STI in its sole
discretion.
During the term
of this Agreement, no Stockholder shall request that the Company
register the transfer (book-entry or otherwise) of any certificate
or uncertificated interest representing any of such
Stockholder’s Shares, unless such transfer is made in
compliance with this Agreement.
If any
Stockholder becomes aware of an Acquisition Proposal or if an
Acquisition Proposal is hereafter made or if any request for
nonpublic information relating to the Company or any of its
subsidiaries is made by any person or entity that has made an
Acquisition Proposal or has advised such Stockholder that it may be
considering making an Acquisition Proposal, such Stockholder shall
within 24 hours notify STI of the material details of such
Acquisition Proposal or request (including the identity of the
person or entity making such Acquisition Proposal, the terms
thereof and the information requested thereby) and shall within 24
hours provide STI with a copy of any Acquisition Proposal or
request that is made in writing and copies of all correspondence
relating thereto. Thereafter such Stockholder shall keep STI fully
apprised on a current basis of the status of any such Acquisition
Proposal and of any modifications to the terms thereof. Each
Stockholder hereby agrees to immediately cease and cause to be
terminated all existing discussions or negotiations with any
parties other than STI conducted heretofore with respect to any
Acquisition Proposal.
1.6
Additional
Documents.
Each
Stockholder hereby covenants and agrees to execute and deliver any
and all additional documents necessary or desirable, in the
reasonable opinion of STI, to carry out the purpose and intent of
this Agreement.
ARTICLE
II
REPRESENTATIONS AND
WARRANTIES OF STOCKHOLDERS
Each
Stockholder hereby represents and warrants to STI and Sentinel as
follows:
2.1
Due Authorization,
Etc.
Such
Stockholder has all requisite power and authority and the legal
capacity to execute, deliver and perform this Agreement, to appoint
STI as its proxy and to consummate the transactions contemplated
hereby. The execution, delivery and performance of this Agreement,
the appointment of STI as such Stockholder’s proxy and the
consummation of the transactions contemplated hereby have been duly
authorized by all necessary action on the part of such Stockholder.
This Agreement has been duly executed and delivered by or on behalf
of such Stockholder and constitutes a legal, valid and binding
obligation of such Stockholder, enforceable against each
Stockholder in accordance with its terms, except that such
enforceability may be limited by bankruptcy, insolvency, moratorium
or other similar laws affecting or relating to creditors’
rights generally, and is subject to general principles of equity.
There is no beneficiary or holder of a voting trust
certifi
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