Exhibit 2.2
EXECUTION VERSION
VOTING AGREEMENT
This
VOTING AGREEMENT, dated as of May 15, 2008 (this “
Agreement ”), is made by and between Applied Digital
Solutions, Inc., a Delaware Corporation (“ Applied
Digital ”) and The Stanley Works, a Connecticut
corporation (“ Purchaser ”).
RECITALS
WHEREAS,
concurrently with the execution and delivery of this Agreement,
VeriChip Corporation, a Delaware corporation (“ Seller
”), and Purchaser are entering into a Stock Purchase
Agreement, dated as of the date hereof (as amended from time to
time, the “ Purchase Agreement ”), which
provides, among other things, for Purchaser to acquire 100% of the
outstanding capital stock of X-Mark Corporation (the “
Company ”), a corporation governed under the laws of
Canada and a wholly owned subsidiary of Seller (the transactions
contemplated by the Purchase Agreement and this Agreement, the
“ Transactions ”);
WHEREAS,
as a condition to entering into the Purchase Agreement, Purchaser
has required that Applied Digital enter into this Agreement, and
Applied Digital desires to enter into this Agreement to induce
Purchaser to enter into the Purchase Agreement; and
WHEREAS,
as of the date hereof, Applied Digital is the legal, record and
Beneficial Owner (as defined below) of 5,355,556 shares of common
stock, par value $0.01 per share, of Seller (“ Shares
”) (together with such additional Shares as they become
Beneficially Owned by Applied Digital after the date hereof, the
“ Owned Shares ”), which Shares are all issued
and outstanding and represent 48.6% of the outstanding Shares and
voting power of the outstanding capital stock of Seller.
NOW,
THEREFORE, in consideration of the representations, warranties,
covenants and agreements set forth herein, the parties hereto agree
as follows:
1. Certain Definitions .
Capitalized terms used but not defined in this Agreement shall have
the meanings given to such terms in the Purchase Agreement. In
addition, for purposes of this Agreement:
“
Affiliate ” shall have the meaning set forth in the
Purchase Agreement, except that, for purposes of this Agreement,
with respect to Applied Digital, “Affiliate” shall not
include Seller or any of the Persons that are directly or
indirectly controlled by Seller.
“
Agreement ” shall have the meaning set forth in the
opening paragraph.
“
Applied Digital ” shall have the meaning set forth in
the opening paragraph.
“
Beneficially Owned ” or “ Beneficial
Ownership ” shall have the meaning given to such term in
Rule 13d-3 under the Exchange Act. “ Beneficial
Owner ” shall mean, with respect to any securities, a
Person who has Beneficial Ownership of such securities.
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“
Company ” shall have the meaning set forth in the
recitals.
“
Currently Owned Shares ” shall have the meaning set
forth in Section 7(c).
“
Owned Shares ” shall have the meaning set forth in the
recitals.
“
Pledge ” shall mean the pledge of Company Shares by
Applied Digital under (i) the Amended and Restated Stock
Pledge Agreement, dated as of December 28, 2007, among Applied
Digital, Laurus Master Fund, Ltd., Valens Offshore SPV I, Ltd.,
Valens U.S. SPV I, LLC, PSource Structured Debt Limited and
Computer Equity Corporation, as amended, modified, restated and/or
superseded from time to time and (ii) the Amended and Restated
Stock Pledge Agreement dated as of December 28, 2007 among
Applied Digital, Kallina Corporation, Valens U.S. SPV I, LLC,
Valens Offshore SPV I, Ltd., Valens Offshore SPV II, Corp., PSource
Structured Debt Limited, Computer Equity Corporation, Digital Angel
Corporation and Digital Angel Technology Corporation, as amended,
modified, restated and/or superseded from time to time.
“
Purchase Agreement ” shall have the meaning set forth
in the recitals.
“
Purchaser ” shall have the meaning set forth in the
opening paragraph.
“
Recommendation Change ” means if (i) the Board of
Directors of Seller has received a Takeover Proposal that such
Board determines, in good faith by resolution duly adopted,
constitutes a Superior Proposal and (ii) the Board determines
(after receiving the advice of its outside counsel) in good faith
by resolution duly adopted that it is reasonably necessary to
withdraw or modify the Board Recommendation to comply with its
fiduciary duties to the stockholders of Seller under applicable
Law.
“
Seller ” shall have the meaning set forth in the
recitals.
“
Shares ” shall have the meaning set forth in the
recitals.
“
Transactions ” shall have the meaning set forth in the
recitals.
“
Transfer ” shall mean, with respect to a security, the
sale, transfer, pledge, hypothecation, encumbrance, assignment or
disposition of such security, rights relating thereto or the
Beneficial Ownership of such security or rights relating thereto,
the offer to make such a sale, transfer, pledge, hypothecation,
encumbrance, assignment or disposition, and each option, agreement,
arrangement or understanding, whether or not in writing, to effect
any of the foregoing. As a verb, “Transfer” shall have
a correlative meaning.
2. No Disposition or
Solicitation .
(a) Except
as set forth in Section 5 of this Agreement, Applied Digital
undertakes that Applied Digital shall not, except as provided under
the Pledge, (i) Transfer or agree to Transfer any Owned Shares
or (ii) grant or agree to grant any proxy or power-of-
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attorney
with respect to any Owned Shares. The restrictions in this
Section 5 shall remain valid until this Agreement terminates
pursuant to Section 9 hereof.
(b) Applied
Digital undertakes that, in its capacity as a stockholder of the
Company and except as contemplated by Section 10, Applied
Digital shall not, and shall cause its investment bankers,
financial advisors, attorneys, accountants and other advisors,
agents and representatives not to, directly or indirectly solicit,
initiate, facilitate or encourage any inquiries or proposals from,
discuss or negotiate with, or provide any non-public information
to, any Person relating to, or otherwise facilitate, any Takeover
Proposal. Notwithstanding the foregoing, if the Board of Directors
of Seller determines, after consultation with outside counsel, in
good faith by resolution duly adopted that an unsolicited written
Takeover Proposal received after the date hereof other than in
breach of Section 5.4 of the Purchase Agreement leads to or is
reasonably likely to lead to a Superior Proposal and the Board of
Directors of Seller determines that it is reasonably necessary to
take the actions described in clauses (A) and (B) of
Section 5.4(a) of the Purchase Agreement to comply with its
fiduciary duties to the stockholders of Seller under applicable
Law, Applied Digital (and its investment bankers, financial
advisors, attorneys, accountants and other advisors, agents and
representatives) shall be entitled (for so long as, to the
knowledge of Applied Digital, such Takeover Proposal remains
outstanding and such determination of the Board of Directions of
Seller remains applicable and has not been reversed by a subsequent
determination) to participate in discussions and negotiations with
the Person making such Takeover Proposal (and its representatives).
Applied Digital shall keep Purchaser reasonably apprised on a
reasonably prompt basis as to the status of any such discussions
and/or negotiations and shall promptly (within 48 hours) provide to
Purchaser copies of any material written communications delivered
or received by Applied Digital in connection with such discussions
and/or negotiations.
3. Stockholder Vote .
Applied Digital undertakes that (a) unless there shall have
been a Recommendation Change, at such time as the Seller conducts a
meeting of, or otherwise seeks a vote or consent of, its
stockholders for the purpose of approving the Purchase Agreement
and/or any of the Transactions contemplated thereby, Applied
Digital shall vote, or provide a consent with respect to, all
then-outstanding Shares Beneficially Owned by Applied Digital in
favor of the Purchase Agreement and the Transactions and
(b) Applied Digital shall (at each meeting of stockholders and
in connection with each consent solicitation) vote all
then-outstanding Shares Beneficially Owned by Applied Digital
against, and not provide consents to, (i) any and all Takeover
Proposals, and (ii) any and all actions that would reasonably
be expected to delay, prevent or frustrate the Transactions or the
transactions contemplated by this Agreement or the satisfaction of
any of the conditions set forth in Article VI of the Purchase
Agreement. Without limiting the foregoing and subject to
Section 9 hereto, it is understood that except as and to the
extent set forth in clause (a) above, the obligations under
this Section 3 shall not be affected by any Adverse
Recommendation Change or other recommendation or position of the
Seller’s Board of Directors.
4. Reasonable Efforts to
Cooperate .
(a) Applied
Digital hereby consents to the publication and disclosure in the
Proxy Statement (and, as and to the extent otherwise required by
securities Laws or the SEC or
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securities authorities, any other documents or communications
provided by Seller, Purchaser or the Company to any Governmental
Entity or to securityholders of the Seller) of Applied
Digital’s identity and Beneficial Ownership of the Owned
Shares and the nature of Applied Digital’s commitments,
arrangements and understandings under and relating to this
Agreement and, if deemed appropriate by Seller, a copy of this
Agreement. Applied Digital will promptly provide any information
reasonably requested by the Company, Seller or Purchaser for any
regulatory application or filing made or approval sought in
connection with the Transactions (including filings with the
SEC).
5. Irrevocable Proxy
.
(a) In
furtherance of the agreements contained in Section 3 of this
Agreement, Applied Digital hereby irrevocably grants to, and
appoints, each of Purchaser and each of the executive officers of
Purchaser, in their respective capacities as officers of Purchaser,
as the case may be, and any individual who shall hereafter succeed
to any such office of Purchaser, and each of them individually,
Applied Digital’s proxy and attorney-in-fact (with full power
of substitution), for and in the name, place and stead of Applied
Digital, to vote all Shares Beneficially Owned by Applied Digital
that are outstanding from time to time, to grant or withhold a
consent or approval in respect o
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