Exhibit 2.3
EXECUTION VERSION
VOTING AGREEMENT
This
VOTING AGREEMENT, dated as of May 15, 2008 (this “
Agreement ”), is made by and between Scott R.
Silverman, an individual (“ Stockholder ”) 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 Xmark 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 Stockholder enter into this Agreement, and
Stockholder desires to enter into this Agreement to induce
Purchaser to enter into the Purchase Agreement; and
WHEREAS,
as of the date hereof, Stockholder is the record and Beneficial
Owner (as defined below) of 866,111 shares of common stock, par
value $0.01 per share, of Seller (“ Shares ”)
(together with such additional Shares as they become Beneficially
Owned by Stockholder after the date hereof, the “ Owned
Shares ”), which Shares represent 5.0% 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:
“
Agreement ” 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.
“
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.
“
Purchase Agreement ” shall have the meaning set forth
in the recitals.
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“
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.
“
Stockholder ” shall have the meaning set forth in the
opening paragraph.
“
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, Stockholder undertakes
that Stockholder shall not (i) Transfer or agree to Transfer
any Owned Shares or (ii) grant or agree to grant any proxy or
power-of-attorney with respect to any Owned Shares. The
restrictions in Section 5 shall remain valid until this
Agreement terminates pursuant to Section 9 hereof.
(b) Stockholder undertakes that,
in his capacity as a stockholder of the Company and except as
contemplated by Section 10, Stockholder shall not, and shall
cause his 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 constitutes 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, Stockholder (and
his investment bankers, financial advisors, attorneys, accountants
and other advisors, agents and representatives) shall be entitled
(for so long as, to the knowledge of Stockholder, such Takeover
Proposal remains outstanding and such determination of the Board of
Directors 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). Stockholder shall keep Purchaser reasonably
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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 Stockholder in connection
with such discussions and/or negotiations.
3.
Stockholder Vote . Stockholder 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, Stockholder shall vote, or provide a consent with respect
to, all then-outstanding Shares Beneficially Owned by Stockholder
in favor of the Purchase Agreement and the Transactions and
(b) Stockholder shall (at each meeting of stockholders and in
connection with each consent solicitation) vote all
then-outstanding Shares Beneficially Owned by Stockholder 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) Stockholder
hereby consents to the publication and disclosure in the Proxy
Statement, if any (and, as and to the extent otherwise required by
securities Laws or the SEC or 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 Stockholder’s identity and Beneficial Ownership
of the Owned Shares and the nature of Stockholder’s
commitments, arrangements and understandings under and relating to
this Agreement and, if deemed appropriate by Seller, a copy of this
Agreement. Stockholder 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,
Stockholder 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, Stockholder’s
proxy and attorney-in-fact (with full power of substitution), for
and in the name, place and stead of Stockholder, to vote all Shares
Beneficially Owned by Stockholder that are outstanding from time to
time, to grant or withhold a consent or approval in respect of such
Shares and to execute and deliver a proxy to vote such Shares, in
each case solely to the extent and in the manner specified in
Section 3. It being understood that the proxy granted pursuant
to this Section 5 shall be solely with regard to the approval
of the Purchase Agreement and the transactions contemplated thereby
and the other matters set forth in Section 3, and any other
matter
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