VOTING AGREEMENT
EXHIBIT 99.1
THIS VOTING AGREEMENT (this “Agreement”) is made and entered into as of December 20,
2005 by and between Maxtor Corporation, a Delaware corporation (“Maxtor”), and each of the
undersigned stockholders listed on the signature page hereto (each, a “Stockholder” and
collectively, the “Stockholders”) of Seagate Technology, an exempted company incorporated
with limited liability under the laws of the Cayman Islands (“Seagate”).
WHEREAS, Maxtor, Seagate and MD Merger Corporation, a Delaware corporation and a direct wholly
owned subsidiary of Seagate (“Merger Sub”), have entered into an Agreement and Plan of
Merger of even date herewith (the “Merger Agreement”), pursuant to which Merger Sub will
be merged with and into Maxtor (the “Merger”), all capital stock of Maxtor outstanding
immediately prior to the effective time of the Merger will be converted into and thereafter
represent solely the right to receive the consideration set forth in the Merger Agreement and
Maxtor will survive as a wholly owned subsidiary of Seagate.
WHEREAS, as a condition to its willingness to enter into the Merger Agreement, Maxtor has
required that each of the Stockholders enter into this Agreement.
WHEREAS, each Stockholder has agreed that certain shares of Seagate Common Stock owned by it
shall be subject to the terms and conditions of this Agreement.
NOW, THEREFORE, intending to be legally bound, the parties hereto hereby agree as follows:
1. Certain Definitions. Capitalized terms that are used but not otherwise defined
herein shall have the respective meanings ascribed to them in the Merger Agreement. For purposes
of this Agreement, the following terms shall have the following respective meanings:
(a) “Exempt Transfer” shall mean (i) any Transfer or other granting of an economic or
other pecuniary interest in or to Seagate Common Stock (pursuant to the granting of an option,
derivative interest or other similar arrangement), provided that the Stockholder or other
transferor of such Seagate Common Stock retains all voting rights in respect of any such Seagate
Common Stock (which voting rights remain subject to the voting obligations set forth in this
Agreement), (ii) any Transfer effected through an open market sale transaction, (iii) any Transfer
made to a Person in direct contemplation of an open market sale transaction (including a “block
trade” to a broker-dealer or other similar transaction), or (iv) any Transfer (other than to
Persons who are affiliates of a party to this Agreement on the date hereof or the date of Transfer)
by a Stockholder to its stockholders, partners or members in the form of pro rata dividends or
distributions, whether upon liquidation or otherwise, of Seagate Common Stock that is immediately
tradable in the hands of the transferee in open market sale transactions. For purposes of the
foregoing, “open market sale transaction” shall mean any open market sale transaction effected
pursuant to (A) an effective registration statement covering such sale of shares of Seagate Common
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Stock that are the subject of such Transfer, (B) an applicable exemption from the registration and
prospectus delivery
requirements of the Securities Act of 1933, as amended (the “Securities Act”), that
applies to open market sale transactions by a Person other than the issuer of securities, or (C)
Rule 144 promulgated under the Securities Act.
(b) “Expiration Time” shall mean the earlier to occur of (i) such date and time as the
Merger Agreement shall have been terminated in accordance with its terms, (ii) the Effective Time,
and (iii) the date of any modification, waiver or amendment to the Merger Agreement in a manner
that increases the Exchange Ratio.
(c) “Person” shall mean any individual, corporation, limited liability company,
general or limited partnership, business trust, unincorporated association or other business
organization or entity, or any governmental body or authority.
(d) “Shares” shall mean any and all voting securities of Seagate beneficially owned by
the Stockholder as of the record date (whether now owned or hereafter acquired) for every meeting
of stockholders of Seagate called with respect to the Proposal (as defined below), and every
postponement or adjournment thereof. With respect to Shares beneficially owned by Xxxxx X. Xxxxxxx, such Shares shall not be deemed to include Shares owned directly by SAC Investment, L. P. (which Shares are covered by the counterpart of this agreement entered into directly by SAC Investment, L. P.).
(e) Transfer. A Person shall be deemed to have effected a “Transfer” of a
security if such person directly or indirectly (i) sells, pledges, encumbers, grants an option with
respect to, transfers or disposes of such security or any interest in such security, or (ii) enters
into an agreement or commitment providing for the sale of, pledge of, encumbrance of, grant of an
option with respect to, transfer of or disposition of such security or any interest therein.
2. Transfer of Shares. Such Stockholder hereby agrees that, other than pursuant to
the terms of this Agreement, at all times during the period commencing with the execution and
delivery of the Merger Agreement and continuing until the Expiration Time, the Stockholder shall
not, directly or indirectly, (a) grant any proxies or enter into any voting trust or other
agreement or arrangement that would transfer, limit or otherwise affect the rights of the
Stockholder with respect to the voting of any Shares in respect of the Proposal (as defined below),
or (b) Transfer (other than in an Exempt Transfer) any shares of Seagate Common Stock (or any
securities convertible into or exercisable or exchangeable for shares of Seagate Common Stock)
beneficially owned by such Stockholder as of the date hereof or hereafter acquired, or any interest
in the foregoing, unless each Person to which any such shares (or any securities convertible into
or exercisable or exchangeable for any such shares), or any interest in any of the foregoing, is or
may be Transferred shall have (a) executed a counterpart of this Agreement (with such modifications
as Maxtor may reasonably request), and (b) agreed in writing to hold such shares (or any securities
convertible into or exercisable or exchangeable for any such shares), or such interest in the
foregoing, subject to the terms and conditions of this Agreement. Any Transfer or purported
Transfer (other than an Exempt Transfer) of shares of Seagate Common Stock in violation of the
foregoing restrictions shall be null and void. The parties hereto expressly acknowledge and hereby
agree that the foregoing restrictions on Transfer shall not apply to any Exempt Transfer and,
subject to the retention of voting rights by the Stockholder, where applicable in accordance with
the terms
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of Section 1(a) and Section 3 hereof, any Shares Transferred in an Exempt
Transfer shall no longer be subject to the terms and conditions of this Agreement for any purpose.
3. Agreement to Vote Shares. The Stockholder hereby agrees that, at all times during
the period commencing with the execution and delivery of the Merger Agreement and continuing until
the Expiration Time, the Stockholder shall (a) when a Seagate Stockholders’ Meeting is held, appear
at such Seagate Stockholders’ Meeting (in person or by proxy) or otherwise cause all Shares to be
counted as present thereat for the purpose of establishing a quorum and (b) vote (or cause to be
voted) all Shares in favor of any proposal (the “Proposal”) to approve the issuance of
shares of Seagate Common Stock in the manner contemplated by, and subject to and in accordance
with, the terms and conditions set forth in the Merger Agreement at every meeting of stockholders
of Seagate called with respect to the Proposal (and at every postponement or adjournment thereof).
Prior to the Expiration Time, the Stockholder shall not enter into any agreement or understanding
with any person to vote or give instructions in any manner inconsistent with the terms of this
Agreement. The provisions of this Section 3 shall apply to all Shares owned as of the
record date for the vote on the Proposal (the “Record Date”), regardless of whether a
Transfer (including an Exempt Transfer) of some or all of such Shares occurs after the Record Date.
4. Irrevocable Proxy. Each Stockholder hereby appoints Maxtor and any designee of
Maxtor, and each of them individually, as such Stockholder’s proxy and attorney-in-fact, with full
power of substitution and resubstitution, to vote with respect to the Shares in accordance with
Section 3 hereof. This proxy is given to secure the performance of the duties of each
Stockholder under this Agreement. Each Stockholder shall take such further action or execute such
other instruments as may be necessary to effectuate the intent of this proxy. The proxy and power
of attorney granted pursuant to Section 4 by each Stockholder shall be irrevocable during
the term of this Agreement, shall be deemed to be coupled with an interest sufficient in law to
support an irrevocable proxy and shall revoke any and all prior proxies granted by such
Stockholder. The power of attorney granted by each Stockholder herein is a durable power of
attorney and shall survive the dissolution, bankruptcy, death or incapacity of such Stockholder.
The proxy and power of attorney granted hereunder shall terminate upon the termination of this
Agreement.
5. Representations and Warranties of the Stockholders. Each Stockholder hereby
represents and warrants, severally and not jointly, to Maxtor as follows:
(a) If such Stockholder is a legal entity and not an individual, such Stockholder has full corporate power and authority to execute and deliver this
Agreement.
(b) If such Stockholder is a legal entity and not an individual, the execution and delivery of this Agreement has been duly and validly authorized by all
necessary action on the part of such Stockholder.
(c) This Agreement has been duly and validly executed and delivered by such Stockholder and
(assuming due authorization, execution and delivery of this Agreement by Maxtor) constitutes the
valid and binding obligation of such Stockholder, enforceable against such Stockholder in
accordance with its terms, except as enforcement may be limited
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by general principles of equity whether applied in a court of law or a court of equity and by
bankruptcy, insolvency and similar laws affecting creditors’ rights and remedies generally.
6. Termination. This Agreement shall terminate and be of no further force or effect
whatsoever upon the Expiration Time without any action on the part of any party hereto.
7. Miscellaneous.
(a) Waiver. No waiver by any party hereto of any condition or any breach of any term
or provision set forth in this Agreement shall be effective unless in writing and signed by each
party hereto. The waiver of a condition or any breach of any term or provision of this Agreement
shall not operate as, or be construed to be, a waiver of any other previous or subsequent breach of
any term or provision of this Agreement.
(b) Severability. In the event that any term, provision, covenant or restriction set
forth in this Agreement, or the application of any such term, provision, covenant or restriction
to any person, entity or set of circumstances, shall be determined by a court of competent
jurisdiction to be invalid, unlawful, void or unenforceable to any extent, the remainder of the
terms, provisions, covenants and restrictions set forth in this Agreement, and the application of
such terms, provisions, covenants and restrictions to persons, entities or circumstances other than
those as to which it is determined to be invalid, unlawful, void or unenforceable, shall remain in
full force and effect, shall not be impaired, invalidated or otherwise affected and shall continue
to be valid and enforceable to the fullest extent permitted by applicable law.
(c) Binding Effect; Assignment. This Agreement and all of the terms and provisions
hereof shall be binding upon, and inure to the benefit of, the parties hereto and their respective
successors and permitted assigns, but, except as otherwise specifically provided herein, neither
this Agreement nor any of the rights, interests or obligations of the Stockholder may be assigned
to any other Person without the prior written consent of Maxtor.
(d) Amendments. This Agreement may not be modified, amended, altered or supplemented,
except upon the execution and delivery of a written agreement executed by each of the parties
hereto.
(e) Specific Performance; Injunctive Relief. Each of the parties hereto hereby
acknowledge that (i) the representations, warranties, covenants and restrictions set forth in this
Agreement are necessary, fundamental and required for the protection of Maxtor and to preserve for
Maxtor the benefits of the Merger, (ii) such covenants relate to matters which are of a special,
unique, and extraordinary character that gives each such representation, warranty, covenant and
restriction a special, unique, and extraordinary value, and (iii) a breach of any such
representation, warranty, covenant or restriction, or any other term or provision of this
Agreement, will result in irreparable harm and damages to Maxtor which cannot be adequately
compensated by a monetary award. Accordingly, Maxtor and
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the
Stockholder hereby expressly agree that in addition to all other remedies available at law or in
equity, Maxtor shall be entitled to the immediate remedy of specific performance, a temporary
and/or permanent restraining order, preliminary injunction, or such other form of injunctive or
equitable relief as may be used by any court of competent jurisdiction to restrain or enjoin any of
the parties hereto from breaching any representations, warranties, covenants or restrictions set
forth in this Agreement, or to specifically enforce the terms and provisions hereof.
(f) Governing Law. This Agreement shall be governed by and construed, interpreted and
enforced in accordance with the internal laws of the State of Delaware without giving effect to any
choice or conflict of law provision, rule or principle (whether of the State of Delaware or any
other jurisdiction) that would cause the application of the laws of any jurisdiction other than the
State of Delaware.
(g) Entire Agreement. This Agreement and the Proxy and the other agreements referred
to in this Agreement set forth the entire agreement and understanding of Maxtor and the Stockholder
with respect to the subject matter hereof and thereof, and supersede all prior discussions,
agreements and understandings between Maxtor and the Stockholder, both oral and written, with
respect to the subject matter hereof and thereof.
(h) Notices. All notices and other communications pursuant to this Agreement shall be
in writing and deemed to be sufficient if contained in a written instrument and shall be deemed
given if delivered personally, telecopied, sent by nationally-recognized overnight courier or
mailed by registered or certified mail (return receipt requested), postage prepaid, to the
respective parties at the following address (or at such other address for a party as shall be
specified by like notice):
| (i) | If to Maxtor, to: | |||||
| Xxxxxxx Xxxxxxx | ||||||
| Vice President, Secretary and General Counsel | ||||||
| Maxtor Corporation | ||||||
| 0000 Xxxxxx Xxxxx Xxxxx | ||||||
| Xxxxxxxx, XX 00000 | ||||||
| Fax: (000) 000-0000 | ||||||
| with a copy (which shall not constitute notice) to: | ||||||
| DLA Xxxxx Xxxxxxx Xxxx Xxxx US LLP | ||||||
| 0000 Xxxxxxxxxx Xxxxxx | ||||||
| Xxxx Xxxx Xxxx, XX 00000 | ||||||
| Attention: Xxxxx Xxxx Xxxxxxx | ||||||
| Facsimile: (000) 000-0000 | ||||||
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(ii) If to a Stockholder, to:
(i) Headings. The section headings set forth in this Agreement are for convenience of
reference only and shall not affect the construction or interpretation of this Agreement in any
manner.
[STOCKHOLDER ADDRESS].
(j) Counterparts. This Agreement may be executed in several counterparts, each of
which shall be deemed an original, and all of which together shall constitute one and the same
instrument.
[Remainder of Page Intentionally Left Blank]
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IN WITNESS WHEREOF, the undersigned have caused this Agreement to be validly executed by a
duly authorized officer thereof as of the date first above written.
| MAXTOR CORPORATION | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
| [STOCKHOLDER SIGNATURE BLOCKS] | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
SCHEDULE I – Signatory Shareholders of Seagate Technology
August Capital III, L.P.
August Capital III Founders Fund
August Capital Strategic Partners III, L.P.
August Capital III Founders Fund
August Capital Strategic Partners III, L.P.
Silver Lake Investors Cayman, L.P.
Silver Lake Partners Cayman, L.P.
Silver Lake Technology Investors Cayman, L.P.
Silver Lake New York, Inc.
Silver Lake Partners Cayman, L.P.
Silver Lake Technology Investors Cayman, L.P.
Silver Lake New York, Inc.
SAC Investments, L.P.
Xxxxxxx X. Xxxxxxx
The Xxxxxxx Family Trust
Wolf Pack Limited Partnership
The Xxxxxxx Family Trust
Wolf Pack Limited Partnership
Xxxxxxx X. Xxxxx
Xxxxxxx X. Xxxxx Revocable Trust Dated January 26, 2001
Red Zone Holdings Limited Partnership
Red Zone II Limited Partnership
Xxxxxxx X. Xxxxx Revocable Trust Dated January 26, 2001
Red Zone Holdings Limited Partnership
Red Zone II Limited Partnership
Xxxxxxx X. Xxxxxxx
Xxxxx X. Xxxxxxx
Xxxxx X. Xxxxxxxx
Xxxxx X. Xxxxxxxx
Xxxxxx X. Xxxxxxx
Xxxxx X. Xxxxxxxxx
Xxxxx X. Xxxxxxxx
Xxxxxxxx Xxxxx
Xxxxx X. Xxxxxxx
Xxxxx X. Xxxxxxxx
Xxxxx X. Xxxxxxxx
Xxxxxx X. Xxxxxxx
Xxxxx X. Xxxxxxxxx
Xxxxx X. Xxxxxxxx
Xxxxxxxx Xxxxx
Xxxx X. Xxxxxxxx
Xxxx X. Xxxxxxxx and Xxxxxx X. Xxxxxxxx, Trustees of the Xxxx and Xxxxxx
Xxxxxxxx Trust U/D/T 5/2/03
Xxxx X. Xxxxxxxx and Xxxxxx X. Xxxxxxxx, Trustees of the Xxxx and Xxxxxx
Xxxxxxxx Trust U/D/T 5/2/03
Xxxxxxx X. Xxxx
Xxxx Family Reserve Trust
Xxxx Family Reserve Trust
Xxxxx X. Xxxxxxxxxx
Xxxxx Enterprises Limited Partnership
Xxxxx Enterprises Limited Partnership
Xxxxx X. Xxxxxxxxx
Silver Sea Limited Partnership
Silver Sea Limited Partnership
Xxxxxxx X. Xxxxxx
Carbonero Creek Limited Partnership
Carbonero Creek Limited Partnership
