VOTING AGREEMENT
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VOTING AGREEMENT
(the "Agreement"),
dated as of July 20,
2005, by
and among Sheridan Square Entertainment, Inc., a Delaware corporation
("Sheridan"), Hirsch International Corp., a
Delaware corporation ("Hirsch"), and
the individuals listed on Schedule A attached
hereto (each a "Stockholder" and
collectively, the "Stockholders").
RECITALS
WHEREAS, Sheridan and Hirsch are parties to that certain
Agreement and Plan of Merger of even date
herewith (the "Merger Agreement"),
pursuant to which SSE Acquisition Corp., a
wholly-owned subsidiary of Hirsch,
shall merge with and into Sheridan, with
Sheridan being the surviving
corporation and becoming a wholly-owned
subsidiary of Hirsch (the "Merger
Transaction"); and
WHEREAS, as an inducement for Sheridan to enter into the
Merger Agreement, the Stockholders have
agreed to vote their shares of Hirsch
stock in favor of the Merger
Transaction;
WHEREAS, a condition precedent to the execution and delivery
of the Merger Agreement is the execution
and delivery of this Agreement; and
WHEREAS, as of the date hereof, each Stockholder is the
registered owner of, or has the power to
vote, the number of shares of common
stock of Hirsch ("Hirsch Stock") as
indicated on Schedule A.
NOW, THEREFORE for valuable consideration, including the
execution and delivery of the Merger
Agreement, the receipt and sufficiency of
which is hereby acknowledged, the parties
hereto agree as follows:
AGREEMENT
1. Voting of Shares.
a. Voting of Shares. At every meeting of
the Stockholders of Hirsch called, and
at every adjournment thereof, and on every
action or approval by written consent
of the Stockholders of Hirsch, each
Stockholder shall vote (or cause to be
voted) the Shares (as defined in Section
1(b) below) owned by such Stockholder:
(i) in favor of the adoption of the Merger
Agreement and all of the other
transactions contemplated by the Merger
Agreement; (ii) against any proposal for
any merger, consolidation, sale of assets,
recapitalization or other business
combination involving Hirsch (other than
the Merger Transaction) or any other
action or agreement that would result in a
breach of any covenant,
representation or warranty or any other
obligation or agreement of Hirsch under
the Merger Agreement or which would result
in any of the conditions to Hirsch's
obligations under the Merger Agreement not
being fulfilled; and (iii) in favor
of any other matter relating to
consummation of the transactions contemplated by
the Merger Agreement provided, however,
that the agreements of any such
Stockholder described in (i) through (iii)
above shall not apply where such
Stockholder is also a director of Hirsch
and, Hirsch has received a Superior
Proposal (as such term is defined in
Section 4.14(d) of the Merger Agreement).
b. "Shares" shall mean: (i) all securities
of Hirsch (including all shares of
Hirsch Stock and all options, warrants and
other rights to acquire Hirsch Stock)
owned by each Stockholder as of the date of
this Agreement; and (ii) all
additional securities of Hirsch (including
all shares of Hirsch Stock and all
additional options, warrants and other
rights to acquire Hirsch Stock) of which
each Stockholder acquires ownership during
the period from the date of this
Agreement through the termination of this
Agreement. In the event of a stock
dividend or distribution, or any change in
Hirsch Stock by reason of any stock
dividend or distribution, or any change in
Hirsch Stock by reason of any
split-up, recapitalization, combination,
exchange of shares or the like, the
term "Shares" shall be deemed to refer to
and include the Shares as well as all
such stock dividends and distributions and
any securities into which or for
which any or all of the Shares may be
changed or exchanged or which are received
in such transaction.
c. Each Stockholder hereby gives any
consents or waivers that are reasonably
required for the approval of the Merger
Transaction under the terms of any
agreements to which the Stockholder is a
party.
d. Nothing in this Agreement shall limit or
restrict any Stockholder in acting
in his capacity as a director of Hirsch or
any Subsidiary of Hirsch and
exercising his fiduciary responsibilities,
it being understood that this
Agreement shall apply to each Stockholder
solely in his capacity as a
stockholder of the Company, and shall not
apply to such stockholders actions,
judgment or decisions as a director of
Hirsch or any Subsidary of Hirsch.
e. Promptly following the execution of this Agreement, the
parties hereto shall use their reasonable
efforts to cause Paul Levine, a
substantial shareholder of Hirsch, to
execute and become a party to this
Agreement.
2. Restrictions on Transfer of Shares.
a. Prior to the consummation of the Merger
Transaction, each Stockholder hereby
agrees not to take any of the following
actions, except in accordance with
subsection (b) of this Section 2: (i)
tender any of the Stockholder's Shares or
any securities convertible into or
exchangeable or exercisable for the
Stockholder's Shares to any person; (ii)
sell, transfer, distribute, pledge,
encumber, assign or otherwise dispose of
(or enter into any transaction or
device that is designed to, or could
reasonably be expected to, result in the
disposition by any person at any time in
the future of) any of the Stockholder's
Shares or any securities convertible into,
exchangeable or exercisable for the
Stockholder's Shares; (iii) enter into any
swap or other derivatives transaction
that transfers to another, in whole or in
part, any of the economic benefits or
risks of ownership of any of the
Stockholder's Shares; (iv) enforce or permit
the execution of the provisions of any
redemption, share purchase or sale,
recapitalization or other agreement with
Hirsch (except pursuant to the Merger
Transaction), (v) deposit any of the
Stockholder's Shares into a voting trust or
depositary facility or enter into a voting
agreement or arrangement with respect
to any Shares or grant any proxy with
respect thereto; or (vi) enter into any
contract, option or other arrangement or
understanding with respect to or
consent to the offer for sale, sale,
transfer, pledge, encumbrance, assignment
or other disposition of, any of its Shares,
any securities convertible into,
exchangeable or exercisable for shares of
Hirsch Stock or any other capital
stock of Hirsch or any interest in any of
the foregoing with any person (any
transaction referred to in clause (i),
(ii), (iii), (iv), (v) or (vi) is
hereinafter referred to as a
"Transfer").
b. Notwithstanding subsection (a) above,
each Stockholder may take an action
described in subsection (a) of this Section
2 if (i) Sheridan gives its prior
written consent to such action or (ii) the
proposed transferee shall have
executed a counterpart of this Agreement
and shall have agreed to hold such
Shares or interest in such Shares subject
to all of the terms and provisions of
this Agreement.
c. No Stockholder shall request that Hirsch
or its transfer agent register the
Transfer (book-entry or otherwise) of any
certificate or uncertificated interest
representing any of such Stockholder's
Shares, and each Stockholder hereby
consents to the entry of stop transfer
instructions by Hirsch of any Transfer of
such Stockholder's Shares, unless such
Transfer is made in compliance with this
Agreement.
d. Hirsch will not register the Transfer
(book-entry or otherwise) of any
certificate or uncertified interest
representing any of the Stockholder's Shares
and will enter a stop transfer instruction
on any Transfer attempted in
violation of this Agreement.
3. Representations and Warranties;
Additional Covenants of the Stockholders.
Each Stockholder hereby represents and
warrants, severally and not jointly, and
covenants to Sheridan as follows:
a. Authorization. Stockholder has the
power, corporate or otherwise, and
authority to enter into this Agreement and
to carry out its obligations
hereunder. The execution and delivery of
this Agreement and the consummation of
the transactions contemplated hereby by
each Stockholder have been duly and
validly authorized by such Stockholder and
no other proceedings, corporate or
otherwise, on the part of the Stockholder
is necessary to authorize the
execution and delivery of this Agreement or
the performance by the Stockholder
of its obligations hereunder. This
Agreement has been duly and validly executed
and delivered by the Stockholder and
constitutes the legal, valid and binding
obligation of such Stockholder, enforceable
against such Stockholder in
accordance with its terms.
b. No Conflict. The execution, delivery and
performance of this Agreement and
the consummation of the transactions
contemplated hereby will not (i) conflict
with or result in any breach of any
provision of the certificate of
incorporation, bylaws or similar
organizational documents, if any, of each
Stockholder, (ii) result in a violation or
breach of, or constitute (with or
without due notice or lapse of time or
both) a default (or give rise to any
right of termination, amendment,
cancellation or acceleration) under any of the
terms, conditions or provisions of any
note, bond, mortgage, indenture, lease,
license, contract, agreement or other
instrument or obligation to which such
Stockholder is a party or by which any of
its properties or assets including the
Shares may be bound, or (iii) violate any
order, writ, injunction, decree,
judgment, permit, license, ordinance, law,
statute, rule or regulation
applicable to such Stockholder or any of
its properties or assets, including the
Shares.
c. Title to Shares. Stockholder is the
registered or beneficial owner of its
Shares free and clear of any lien or
encumbrance, proxy or voting restriction
other than pursuant to this Agreement. Such
Shares are all t