This Voting
Agreement, dated as of October 18, 2006 (this “
Agreement ”), is by and among Vertical Communications,
Inc., a Delaware corporation (“ Vertical ”),
Vodavi Technology, Inc., a Delaware corporation (the
“Company”), and LG-Nortel Co. Ltd (“
Stockholder ”).
WHEREAS, as of the
date hereof, Stockholder owns beneficially the number of shares of
common stock of the Company set forth opposite Stockholder’s
name on Schedule I hereto (all shares so owned and
which may hereafter be acquired by Stockholder prior to the
termination of this Agreement, whether upon the exercise of
options, conversion of convertible securities, exercise of warrants
or by means of purchase, dividend, distribution or otherwise, being
referred to herein with respect to Stockholder as the “
Stockholder Shares ”); and
WHEREAS,
contemporaneously with the execution and delivery of this
Agreement, the Company is entering into an Agreement and Plan of
Merger, dated as of the date hereof (as such agreement may
hereafter be amended from time to time, the “ Merger
Agreement ”), along with Vertical, and Vertical
Acquisition Sub Inc., a Delaware corporation and a wholly owned
subsidiary of Vertical (“ Sub ”), which provides
for, upon the terms and subject to the conditions set forth
therein, the merger of Sub with and into the Company (the “
Merger ”); and
WHEREAS, pursuant
to the Merger Agreement, the Company has agreed to call a special
meeting of its stockholders for the purpose of (the “
Proposal ”); and
WHEREAS, in
consideration of Vertical entering into the Merger Agreement and
incurring certain related fees and expenses relating to the Merger,
Stockholder has agreed to enter into this Agreement; and
WHEREAS, Vodavi is
a party to this Agreement for the purpose of facilitating certain
continuing relationships between Stockholder and Vertical following
the Effective Time.
NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and
agreements herein contained, and intending to be legally bound
hereby, the Company, Vertical and Stockholder hereby agree as
follows:
VOTING OF SHARES; AND OTHER
COVENANTS OF STOCKHOLDER AND VERTICAL
SECTION 1.1.
Voting of Shares . From the date hereof until termination of
this Agreement pursuant to Section 3.2 hereof (the “
Term ”), at any meeting of the stockholders of the
Company called to vote on the Proposal or at any adjournment or
postponement thereof, and in any action by consent of the
stockholders of the Company with respect to which approval of the
Proposal is sought, Stockholder shall (A) appear at such
meeting or otherwise cause its Stockholder Shares to be counted as
present thereat for purposes of establishing a quorum
and
(B) vote
(or cause to be voted) its Stockholder Shares in favor of the
Proposal and such other matters as may be necessary or advisable to
consummate the transactions contemplated by the Merger
Agreement.
SECTION 1.2. No
Inconsistent Arrangements . Except as contemplated by this
Agreement, Stockholder shall not during the Term (i) grant any
proxy, power-of-attorney or other authorization in or with respect
to its Stockholder Shares which is inconsistent with the terms
hereof, (ii) deposit its Stockholder Shares into a voting trust or
enter into a voting agreement or arrangement with respect to its
Stockholder Shares, (iii) sell, transfer, pledge or encumber,
assign or otherwise dispose of or enforce or permit the execution
of the provisions of any redemption, share purchase or sale,
recapitalization or other agreement with the Company or enter into
any contract, option or other arrangement or understanding with
respect to the offer for sale, sale, transfer, pledge, encumbrance,
assignment or other disposition of any of the Stockholder Shares
except to a person who agrees in writing to be bound by the terms
and conditions of this Agreement as a Stockholder or (iv) take
any other action that would in any way restrict, limit or interfere
with the performance of its obligations hereunder or the
transactions contemplated hereby or by the Merger
Agreement.
SECTION 1.3.
Disclosure . Stockholder hereby authorizes Vertical and/or
the Company to publish and disclose in any filing with the SEC,
including any proxy statement relating to the approval of the
Merger Agreement by the Company’s stockholders (including all
exhibits and schedules filed with the SEC), its identity and
ownership of its Stockholder Shares and the nature of its
commitments, arrangements and understandings under this
Agreement.
SECTION 1.4.
Continuing Business Relationships . In consideration of
Stockholder’s compliance with its obligations contained in
Section 1.1, Vertical agrees that during the Term and
continuing for a two-year period following the Term:
(a) Vertical shall continue to support Stockholder’s
product line consistent with the historic relationship between the
Company and Stockholder; and (b) Vertical will distribute, on
a non-exclusive basis, certain LG-Nortel products in fulfilling
purchase orders for Nortel and supporting the LG-Nortel products
sold by Nortel in North America on mutually acceptable terms; and
(c) for the purpose of facilitating the transition following
the Effective Time, prior to the Effective Time, Vertical shall
enter into arrangements whereby Vodavi’s current chief
executive officer and chief financial officer agree to cooperate
with transitional services related to Stockholder’s
relationship with the Company for a term of no less than nine
months from the Effective Time.
REPRESENTATIONS AND WARRANTIES OF
STOCKHOLDER
Stockholder hereby
represents and warrants as follows:
SECTION 2.1.
Authority . Stockholder has all requisite power and
authority to execute, deliver and perform this Agreement and to
consummate the transactions contemplated hereby. The execution,
delivery and performance of this Agreement and the consummation of
the transactions contemplated hereby have been duly authorized by
all necessary action on the part of Stockholder. This Agreement has
been duly executed and delivered by or on behalf of
-2-
Stockholder and
constitutes a legal, valid and binding obligation of Stockholder,
enforceable against Stockholder in accordance with its terms,
except as enforcement may be limited by bankruptcy, insolvency,
moratorium or other similar laws and except that the availability
of equitable remedies, including specific performance, is subject
to the discretio
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