VOTING AGREEMENT
THIS VOTING AGREEMENT (this
“Agreement”),
dated as of January 27, 2010, is made by and among Berliner Communications, Inc.
a Delaware corporation (“Parent”), HM Capital
Partners, LLC, a Texas limited liability company (together with its permitted
successors appointed in accordance with terms of the Merger Agreement (as
defined below), the “Company
Representative”), and those holders of capital stock of Parent listed on
Exhibit A
hereto (each a “Controlling
Stockholder” and collectively, the “Controlling
Stockholders”). Capitalized terms used herein but not defined
shall have the meanings ascribed to them in the Merger Agreement.
RECITALS
WHEREAS, pursuant to that
certain Agreement and Plan of Merger, dated as of the date hereof (the “Merger Agreement”),
by and among Parent, BCI East, Inc., a Delaware corporation and wholly-owned
subsidiary of Parent (“Merger Sub”), the
Company Representative, Xxxx Xxxxxxxx (together with his permitted successors
appointed in accordance with terms of the Merger Agreement, the “Parent
Representative”) and Unitek Holdings, Inc., a Delaware corporation
(the “Company”), Merger Sub
will merge with and into the Company (the “Merger”) and the
Company, as the surviving corporation of the Merger, will become a wholly-owned
subsidiary of Parent;
WHEREAS, concurrently with the
execution and delivery of the Merger Agreement and as an inducement to Parent
and Merger Sub to enter into the Merger Agreement, Parent, the Company
Representative and the Controlling Stockholders are entering into this
Agreement;
WHEREAS, after giving effect
to the Merger, each Controlling Stockholder will have the right to receive the
shares of capital stock of Parent set forth next to such Controlling
Stockholder’s name on the signature pages hereto (hereinafter collectively
referred to as the “Controlling Stockholder
Shares”);
WHEREAS, pursuant to Section
3.4(a) of the Merger Agreement, at the Effective Time, Parent will deposit with
the Escrow Agent 10,980,000 shares of Parent Common Stock otherwise issuable as
Merger Consideration (the “Escrow
Shares”);
WHEREAS, all voting rights
with respect to the Escrow Shares shall be exercised by the Company
Representative on behalf of the Former Company Stockholders (including the
Controlling Stockholders), by delivering written voting instructions to the
Escrow Agent pursuant to the Escrow Agreement; and
WHEREAS, the portion of the
Escrow Shares that at any given time would (if released for the benefit of the
Former Company Stockholders) be released to the Controlling Stockholders are
referred to herein as the “Controlling Stockholder
Escrow Shares”.
NOW, THEREFORE, in
consideration of the premises and the mutual covenants and agreements
hereinafter contained, the parties hereby agree as follows:
1.
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Agreement to Retain
Shares.
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(a)
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Prior
to the Expiration Date (as defined below), each Controlling Stockholder
agrees to not, directly or
indirectly:
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(i)
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sell,
transfer, exchange or otherwise dispose of (including by merger,
consolidation or otherwise by operation of law) any of the Controlling
Stockholder Shares or any New Shares (as defined below) held by such
Controlling Stockholder (except as otherwise contemplated by the Merger
Agreement or Section 1(b));
or
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(ii)
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grant
any proxies or powers of attorney, deposit any of the Controlling
Stockholder Shares or any New Shares held by such Controlling Stockholder
into a voting trust or enter into any other voting agreement (other than
this Agreement) with respect to any such Controlling Stockholder Shares or
any New Shares, or enter into any agreement or arrangement (other than
this Agreement) providing for any of the actions described in this clause
(ii).
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As used
herein, the term “Expiration Date”
shall mean the date on which the Charter Amendment has been filed with and
accepted by the Secretary of State of the State of Delaware and has become
effective.
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(b)
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Permitted
Transfers. Section 1 shall
not prohibit (i) a transfer of Controlling Stockholder Shares or New
Shares by any Controlling Stockholder to any Affiliate, general or limited
partner or to any family member or trust for the benefit of any family
member of such Controlling Stockholder if the Person to which or whom such
security is to be transferred shall have executed a written agreement
pursuant to which such Person becomes a party to this Agreement and agrees
to be bound by all the provisions hereof as if such Person was a
Controlling Stockholder hereunder and (ii) any conversion by a Controlling
Stockholder of Parent Preferred Stock into Parent Common Stock in
accordance with the terms thereof.
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(c)
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New
Shares. Each Controlling Stockholder agrees that any
shares of capital stock of Parent that such Controlling Stockholder
purchases or with respect to which such Controlling Stockholder otherwise
acquires record or beneficial ownership of prior to the Expiration Date,
including any Controlling Stockholder Escrow Shares or Parent Common Stock
issued upon conversion of any shares of Parent Preferred Stock (such
shares collectively, the “New Shares”)
shall be subject to the terms and conditions of this Agreement to the same
extent as if they constituted Controlling Stockholder Shares as of the
date hereof.
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(d)
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Stop
Transfer. From and after the date of this Agreement
through the Expiration Date, Parent
will not, and will cause its transfer agent to not, register or otherwise
recognize the transfer (book-entry or otherwise) of any Controlling
Stockholder Shares or any certificate or uncertificated interest
representing any of the Controlling Stockholder Shares, except as
permitted by, and in accordance with, Section
1(b).
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2
2.
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Agreement to Vote
Controlling Stockholder
Shares.
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(a)
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Each
Controlling Stockholder agrees to hold the Controlling Stockholder Shares
and any New Shares subject to, and to vote the Controlling Stockholder
Shares and any New Shares held by it in accordance with, the provisions of
this Agreement.
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(b)
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Parent
agrees to take such actions as are reasonably necessary to give effect to
the provisions of this Agreement, including, without limitation, promptly
calling stockholder meetings and/or circulating written consents of
stockholders.
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(c)
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Each
Controlling Stockholder agrees to take such actions as are reasonably
necessary to instruct the Company Representative to vote the Controlling
Stockholder Escrow Shares held by the Escrow Agent on behalf of such
Controlling Stockholder in accordance with the provisions of this
Agreement.
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(d)
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The
Company Representative agrees to instruct the Escrow Agent to vote the
Controlling Stockholder Escrow Shares held by the Escrow Agent for the
benefit of the Controlling Stockholders in accordance with the
instructions provided by the Controlling
Stockholders.
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3.
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Approval of Amended
and Restated Certificate of Incorporation. Each
Controlling Stockholder hereby agrees that, immediately after the
Effective Time and upon receipt or issuance of its Controlling Stockholder
Shares pursuant to the Merger Agreement, such Controlling Stockholder
shall (a) vote or give consent with respect to the Controlling Stockholder
Shares and any New Shares held by such Controlling Stockholder in favor of
(i) amending the Amended and Restated Certificate of Incorporation of
Parent in its entirety to read as set forth on Exhibit B
hereto (the “Charter
Amendment”), (ii) authorizing the Board of Directors of Parent
(the “Board”) to
cause certain officers of Parent to file the Charter Amendment with the
office of the Secretary of State of the State of Delaware and (iii)
authorizing the Board to take such other actions as it or any committee
thereof may reasonably decide to be necessary to effect the Charter
Amendment and (b) vote the Controlling Stockholder Shares and any New
Shares held by it against (and not consent to) any amendment of the
Charter Amendment, any other amendment to the Amended and Restated
Certificate of Incorporation of Parent or the Bylaws of Parent in a manner
inconsistent with the provisions of this
Agreement.
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4.
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Election of
Directors.
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(a)
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For
so long as (i) the Controlling Stockholders collectively own beneficially
or of record or otherwise have the right to vote or consent with respect
to at least thirty-five percent (35%) of the total number of the then
outstanding shares of Parent Common Stock (including Parent Preferred
Stock calculated on an as-if-converted basis) (such period being referred
to herein as the “Voting Period”)
and (ii) Xxxx Xxxxxxxx or his estate owns beneficially or of record at
least five million (5,000,000) shares (as adjusted for stock splits, stock
dividends, combinations or the like) of Parent Common Stock (including
Parent Preferred Stock calculated on an as-if-converted basis),
(A) Parent shall use its commercially reasonable efforts to cause the
Board to nominate Xxxx Xxxxxxxx (or if Xxxx Xxxxxxxx dies or becomes
incapacitated, the duly appointed nominee of his estate, trustee, executor
or guardian, as applicable) to the Board for a three-year term upon the
expiration in 2012 of his term on the Board, (B) each Controlling
Stockholder agrees to vote or consent the Controlling Stockholder Shares
and any New Shares held by it in favor of the re-election of Xxxx Xxxxxxxx
(or if Xxxx Xxxxxxxx dies or becomes incapacitated, the duly appointed
nominee of his estate, trustee, executor or guardian, as applicable) to
the Board for a three-year term upon the expiration in 2012 of his term on
the Board, such that he (or such duly appointed nominee) will continue to
serve on the Board for the 2012-2015 term and (C) each Controlling
Stockholder agrees to vote the Controlling Stockholder Shares and any New
Shares held by it against (and not consent to) any action that could
reasonably be expected to have the effect of preventing or disabling the
Controlling Stockholders from performing their obligations under this
Section 4(a).
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(b)
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During
the Voting Period, (i) Parent shall use its commercially reasonable
efforts to cause the Board to consider in good faith nominating Xxxx
Xxxxxx to the Board for a three-year term upon the expiration in 2012 of
his term on the Board, (ii) if the Board nominates Xxxx Xxxxxx to the
Board upon the expiration in 2012 of his term on the Board, each
Controlling Stockholder agrees to vote or consent the Controlling
Stockholder Shares and any New Shares held by it in favor of the
re-election of Xxxx Xxxxxx to the Board for a three-year term upon the
expiration in 2012 of his term on the Board, such that he will continue to
serve on the Board for the 2012-2015 term and (iii) each Controlling
Stockholder agrees to vote the Controlling Stockholder Shares and any New
Shares held by it against (and not consent to) any action that could
reasonably be expected to have the effect of preventing or disabling the
Controlling Stockholders from performing their obligations under this
Section
4(b).
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(c)
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During
the Voting Period, each Controlling Stockholder agrees to not grant any
proxies or powers of attorney, deposit any of the Controlling Stockholder
Shares or any New Shares held by such Controlling Stockholder into a
voting trust or enter into any other voting agreement (other than this
Agreement) with respect to any such Controlling Stockholder Shares or New
Shares, or enter into any agreement or arrangement (other than this
Agreement) providing for any action inconsistent with the agreements in
this Section
4.
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5.
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No Other Voting
Restrictions. This Agreement
is intended to bind the Controlling Stockholders, as stockholders of
Parent, and the Company Representative, as the duly appointed
representative of the Controlling Stockholders with respect to the
Controlling Stockholder Escrow Shares, only with respect to the specific
matters set forth herein. Except as set forth herein, the
Controlling Stockholders and the Company Representative shall not be
restricted from voting in favor of, against or abstaining with respect to
any other matter presented to the stockholders of
Parent.
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6.
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Representations,
Warranties and Covenants of the Controlling
Stockholders. Each
Controlling Stockholder hereby represents, warrants and covenants to
Parent as of the date hereof
that:
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(a)
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after
giving effect to the Merger and after receiving such shares pursuant to
and in accordance with the Merger Agreement, such Controlling Stockholder
will be the record and beneficial owner of the Controlling Stockholder
Shares, which will be held free and clear of any liens, claims, options,
charges or other encumbrances, other than as imposed by state and federal
securities laws, this Agreement and the Merger
Agreement;
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(b)
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such
Controlling Stockholder does not (nor, to its knowledge, do any of its
Affiliates) own of record or beneficially any shares of capital stock of
Parent other than the Controlling Stockholder Shares held by it and the
Controlling Stockholder Escrow Shares attributable to
it;
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(c)
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such
Controlling Stockholder has the legal capacity, power and authority to
enter into and perform all of such Controlling Stockholder’s obligations
under this Agreement; and
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(d)
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the
execution, delivery and performance of this Agreement by such Controlling
Stockholder does not and will not violate, conflict with, result in a
breach of, or require any consent or approval of any other Person under,
(i) such Controlling Stockholder’s constituent and governing
documents, or (ii) any law, statute, regulation, order, judgment or
decree to which such Controlling Stockholder is subject, or (iii) any
material agreement or instrument to or under which such Controlling
Stockholder is a party or otherwise bound or subject, other than in the
case of clauses (ii) and (iii) any such violation, conflict, breach,
consent or approval that is not material in any
respect.
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7.
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Representations,
Warranties and Covenants of the Company Representative. The
Company Representative hereby represents, warrants and covenants to Parent
as of the date hereof that:
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(a)
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the
Company Representative has the legal capacity, power and authority to
enter into and perform all of the Company Representative’s obligations
under this Agreement; and
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(b)
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the
execution, delivery and performance of this Agreement by the Company
Representative does not and will not violate, conflict with, result in a
breach of, or require any consent or approval of any other Person under,
(i) the Company Representative’s constituent and governing documents,
or (ii) any law, statute, regulation, order, judgment or decree to
which the Company Representative is subject, or (iii) any material
agreement or instrument to or under which the Company Representative is a
party or otherwise bound or subject, other than in the case of clauses
(ii) and (iii) any such violation, conflict, breach, consent or approval
that is not material in any
respect.
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8.
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Representations,
Warranties and Covenants of Parent. Parent
hereby represents, warrants and covenants to the Controlling Stockholders
and the Company Representative as of the date hereof
that:
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(a)
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Parent
has the legal capacity, power and authority to enter into and perform all
of Parent’s obligations under this Agreement;
and
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(b)
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the
execution, delivery and performance of this Agreement by Parent does not
and will not violate, conflict with, result in a breach of, or require any
consent or approval of any other Person under, (i) Parent’s
certificate of incorporation or bylaws, or (ii) any law, statute,
regulation, order, judgment or decree to which Parent is subject, or
(iii) any material agreement or instrument to or under which Parent
is a party or otherwise bound or subject, other than in the case of
clauses (ii) and (iii) any such violation, conflict, breach, consent or
approval that is not material in any
respect.
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9.
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Termination. This
Agreement shall automatically terminate and shall have no further force
and effect as of the day immediately following the later of (a) the date
on which the Charter Amendment is filed with and is accepted by the
Secretary of State of the State of Delaware and becomes effective and (b)
the date on which the Controlling Stockholders irrevocably vote or consent
the Controlling Stockholder Shares and any New Shares in favor of Xxxx
Xxxxxxxx or his duly appointed nominee to the Board at Parent's annual
meeting of stockholders in 2012.
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10.
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Additional
Documents. Parent, each Controlling Stockholder and the
Company Representative hereby covenant and agree to execute and deliver
any additional documents requested by the other as are reasonably
necessary to carry out the purpose and intent of this
Agreement.
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11.
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Third Party
Beneficiaries. Nothing in this Agreement, express or
implied, is intended to or shall confer upon any Person other than the
parties hereto or their respective successors and permitted assigns, any
rights, remedies or liabilities under or by reason of this Agreement;
provided,
that the Parent Representative or his duly appointed nominee shall be a
third party beneficiary of the provisions of this Agreement and shall be
entitled to enforce the rights, covenants and agreements of Parent set
forth herein.
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12.
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Miscellaneous.
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(a)
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Waiver. No
failure or delay by any party in exercising any right, power or privilege
hereunder shall act as a waiver thereof, nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the
exercise of any other right, power or privilege
hereunder.
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(b)
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Governing
Law. THE
PROVISIONS OF THIS AGREEMENT, ITS EXECUTION, PERFORMANCE OR
NONPERFORMANCE, INTERPRETATION, TERMINATION, CONSTRUCTION AND ALL MATTERS
BASED UPON, ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE
NEGOTIATION, EXECUTION OR PERFORMANCE OF THIS AGREEMENT (WHETHER IN
EQUITY, LAW OR STATUTE) SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS, BOTH PROCEDURAL AND SUBSTANTIVE, OF THE STATE OF DELAWARE
WITHOUT REGARD TO ITS CONFLICT OF LAWS PROVISIONS THAT IF APPLIED MIGHT
REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION.
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(c)
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Venue. UNLESS
OTHERWISE EXPLICITLY PROVIDED IN THIS AGREEMENT, ANY ACTION, CLAIM, SUIT
OR PROCEEDING RELATING TO THIS AGREEMENT OR THE ENFORCEMENT OF ANY
PROVISION OF THIS AGREEMENT SHALL BE BROUGHT IN THE XXXXX XXXXXX XX XXX
XXXXX XX XXX XXXX LOCATED IN NEW YORK COUNTY OR THE UNITED STATES DISTRICT
COURT FOR THE SOUTHERN DISTRICT OF NEW YORK OR IN ANY OTHER COURT OF
COMPETENT JURISDICTION IF SUCH STATE OR FEDERAL COURTS IN NEW YORK DO NOT
HAVE JURISDICTION OVER SUCH MATTER, WITHOUT BOND OR OTHER SECURITY BEING
REQUIRED.
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(d)
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Exclusive
Jurisdiction. Each of the parties hereto hereby submits
to the jurisdiction of any state or federal court sitting in New York
City, New York, in any action arising out of or relating to this Agreement
or the transactions contemplated hereby and agrees that all claims in
respect of such action may be heard and determined in any such
court. Each party hereto also agrees not to bring any action
arising out of or relating to this Agreement or the transactions
contemplated hereby in any other court. Each of the parties
hereto waives any defense of inconvenient forum to the maintenance of any
action so brought and waives any bond, surety, or other security that
might be required of any other party with respect
thereto.
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(e)
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Waiver of Jury
Trial. EACH
PARTY HEREBY EXPRESSLY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION
BROUGHT BY OR AGAINST IT ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED
HEREBY.
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(f)
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Counterparts;
Electronic Transmission. This
Agreement may be executed in two or more counterparts (any of which may be
delivered by facsimile or other electronic transmission followed promptly
by an executed original), each of which will be deemed an original, but
all of which together will constitute one and the same
instrument. Any signature page delivered by facsimile or
electronic image transmission shall be binding to the same extent as an
original signature page.
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(g)
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Notices. Any
notice or other communication provided for herein or given hereunder to a
party hereto must be in writing, and shall be deemed to have been given
(i) when personally delivered or delivered by facsimile transmission with
confirmation of delivery, (ii) one Business Day after deposit with
Federal Express or similar overnight courier service, or (iii) three
Business Days after being mailed by registered, certified or first class
mail, return receipt requested. Notices and any other
communications to Parent, any Controlling Stockholder and the Company
Representative shall be sent to the following addresses (or to such other
address with respect to a party as such party notifies the other in
writing as provided in this Section 12(g)):
(A) if to Parent, to the address or facsimile number provided in the
Merger Agreement, including to the persons designated therein to receive
copies; (B) if to any Controlling Stockholder, to the Controlling
Stockholder’s address or facsimile number shown below such Company
Stockholder’s name on Exhibit A
hereto; and (C) if to the Company Representative, to the address or
facsimile number provided in the Merger Agreement, including to the
persons designated therein to receive
copies.
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(h)
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Severability. Any
term or provision of this Agreement that is invalid or unenforceable in
any jurisdiction will, as to that jurisdiction, be ineffective to the
extent of such invalidity or unenforceability without rendering invalid or
unenforceable the remaining terms and provisions of this Agreement or
affecting the validity or enforceability of any of the terms or provisions
of this Agreement in any other jurisdiction. Upon such
determination that any term or other provision is prohibited or invalid
under applicable law, the parties hereto shall negotiate in good faith to
modify this Agreement so as to effect the original intent of the parties
as closely as possible to the fullest extent permitted by applicable law
in an acceptable manner to the end that the transactions contemplated
hereby are fulfilled to the fullest extent
possible.
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(i)
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Specific Performance;
Injunctive Relief. The
parties agree that irreparable damage would occur in the event that any of
the provisions of this Agreement were not performed in accordance with
their specific terms or were otherwise breached. It is
accordingly agreed that the parties hereto shall be entitled to an
injunction or injunctions to prevent breaches of this Agreement, and to
enforce specifically the terms and provisions of this Agreement, this
being in addition to any other remedy to which they are entitled at law or
in equity. The equitable remedies described in this Section 12(i)
shall be in addition to, and not in lieu of, any other remedies at law or
in equity that the parties to this Agreement are permitted to elect to
pursue in accordance with this
Agreement.
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(j)
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Complete
Agreement. This Agreement and the exhibits hereto
contain the complete agreement between the parties hereto with respect to
the subject matter herein and supersede all prior agreements and
understandings, whether written or oral, between the parties hereto that
may have related to the subject matter hereof in any
way.
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(k)
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Amendment. This
Agreement and the exhibits hereto may be amended or modified only by an
instrument in writing duly executed by the parties
hereto.
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[SIGNATURE
PAGE FOLLOWS]
8
IN WITNESS WHEREOF, the
parties have caused this Voting Agreement to be duly executed on the date first
above written.
PARENT:
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BERLINER
COMMUNICATIONS, INC.
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By:
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/s/ Xxxx Xxxxxxxx | |
Name:
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Xxxx
Xxxxxxxx
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Title:
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President | |
COMPANY
REPRESENTATIVE:
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HM
CAPITAL PARTNERS LLC
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By:
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/s/
Xxxxx X. Xxxxxxx
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Name:
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Xxxxx X. Xxxxxxx
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Title:
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Vice
President, Chief Financial Officer and
Secretary
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Signature
Page to Voting Agreement
CONTROLLING
STOCKHOLDERS:
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HM
UNITEK COINVEST, LP
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By:
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Sector
Performance LLC,
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its
general partner
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By:
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/s/
Xxxxx X. Xxxxxxx
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Name:
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Xxxxx X. Xxxxxxx
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Title:
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Vice President and Chief Financial Officer | |||
Number
of Shares of Common Stock: 3,995,880
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Number
of Shares of Series A Preferred Stock: 159,836
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Number
of Shares of Series B Preferred Stock: 0
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SECTOR
PERFORMANCE FUND, LP
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By:
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Sector
Performance GP, LP,
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its
general partner
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By:
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Sector
Performance LLC,
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its
general partner
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||||
By:
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/s/ Xxxxx X. Xxxxxxx | |||
Name:
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Xxxxx X. Xxxxxxx | |||
Title:
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Vice President and Chief Financial Officer | |||
Number
of Shares of Common Stock: 26,236,452
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Number
of Shares of Series A Preferred Stock: 1,049,459
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Number
of Shares of Series B Preferred Stock:
204,818
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Signature
Page to Voting Agreement
SPF
SBS, LP
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By:
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Sector
Performance LLC,
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its
general partner
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By:
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/s/ Xxxxx X. Xxxxxxx | ||
Name:
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Xxxxx X. Xxxxxxx | ||
Title:
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Vice President and Chief Financial Officer | ||
Number
of Shares of Common Stock: 1,657,668
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Number
of Shares of Series A Preferred Stock: 66,307
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Number
of Shares of Series B Preferred Stock:
12,941
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Signature
Page to Voting Agreement