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Exhibit 2.03
VOTING AGREEMENT
THIS VOTING AGREEMENT is made and entered into this 10th day of
December, 1999 (this "Agreement"), among Liberty Media Corporation, a Delaware
corporation ("Liberty"), and the stockholders each other person and entity
listed on the signature pages hereof (each, a "Stockholder").
WITNESSETH:
WHEREAS each Stockholder is the record holder on the date hereof of the
number of shares of Class A Common Stock, par value $.01 per share, of the
Xxxx-XX Corporation, a Delaware Corporation ("Xxxx") ("Xxxx Class A Stock") and
Class B Common Stock, par value $.01 per share, of Xxxx ("Xxxx Class B Stock"
and, together with the Xxxx Class A Stock, the "Xxxx Stock") set forth opposite
such Stockholder's name on Exhibit A hereto (all such shares and any shares of
Xxxx Stock hereafter acquired by the Stockholders prior to the termination of
this Agreement being referred to herein as the "Shares");
WHEREAS, concurrently with the execution and delivery of this
Agreement, AT&T Corp., a New York corporation ("AT&T"), B-Group Merger Corp., a
Delaware corporation and wholly-owned subsidiary of AT&T ("Merger Sub"), Liberty
and Xxxx are entering into an Agreement and Plan of Merger, dated as of the date
hereof (as the same may be amended from time to time, the "Merger Agreement"),
which provides, among other things, for the merger of Merger Sub with and into
Xxxx upon the terms and subject to the conditions provided for therein;
WHEREAS, as a condition to the willingness of Liberty to enter into the
Merger Agreement, Liberty has required that each Stockholder agree, and, in
order to induce Liberty to enter into the Merger Agreement, each Stockholder has
agreed, severally and not jointly, to enter into this Agreement with respect to
all the Shares of such Stockholder;
WHEREAS, capitalized terms used but not defined herein shall have the
meanings ascribed to such terms in the Merger Agreement.
NOW, THEREFORE, in consideration of the premises, covenants and
representations contained herein and in the Merger Agreement, and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
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ARTICLE 1
VOTING OF SHARES
1.1 Voting of Shares. Each Stockholder hereby agrees that during the
time this Agreement is in effect, at any meeting of the stockholders of Xxxx,
however called (whether, annual, special or adjourned), and in any action by
written consent of the stockholders of Xxxx, such Stockholder shall vote all
Shares and all other voting securities of Xxxx owned beneficially or of record
by such Stockholder, or with respect to which such Stockholder has the right to
vote (or sign its name, as stockholder, to any consent, certificate or other
document relating to Xxxx that the law of the State of Delaware may permit or
require): (a) in favor of approval and adoption of the Reclassification (as
prescribed in the Merger Agreement), which vote shall come first at the Special
Meeting, (b) in favor of approval and adoption of the Merger Agreement, the
Merger, the Merger Proposals, and any other transactions contemplated by the
Merger Agreement (prior to any amendment thereto) for which a stockholder vote
is required and (c) against any other proposal for any investment in,
acquisition of, business combination with or other extraordinary transaction
regarding Xxxx or any direct or indirect subsidiary or division thereof,
including, without limitation, any merger, purchase or sale of securities or
purchase or sale of assets outside the ordinary course of business; provided,
however, that each Stockholder shall not be required to vote with regard to the
foregoing in the event that the Board of Directors of Xxxx, in accordance with
Section 7.5(b) of the Merger Agreement, withdraws or modifies its recommendation
of such approval and adoption of the Merger Agreement and the Merger. Each
Stockholder further agrees to vote, or to cause to be voted, in accordance with
the foregoing all Shares and any other voting securities of Xxxx that are
beneficially owned by such Stockholder or as to which such Stockholder has,
directly or indirectly, the right to vote or control the voting of. Each
Stockholder acknowledges receipt of a copy of the Merger Agreement.
1.2 Proxy. Each Stockholder hereby irrevocably appoints Liberty (and
any officer of Liberty), with full power of substitution, the proxy of such
Stockholder with full power and authority, in the event that such Stockholder
shall at any time fail to perform its obligations under Section 1.1 hereof, to
vote or act by consent in respect of its Shares and all of its other voting
securities of Xxxx exclusively as provided in Section 1.1. The proxy hereby
granted shall, for the term of this Agreement, be irrevocable and shall be
deemed coupled with an interest, in accordance with Section 212 of the Delaware
General Corporation Law.
1.3 Further Assurances. Each Stockholder shall perform such further
acts and execute such further documents and instruments as may reasonably be
required to carry out the provisions of this Agreement.
ARTICLE 2
COVENANTS
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2.1 Restrictions on Transfer. Each Stockholder hereby covenants and
agrees that such Stockholder shall not, and shall not permit any company, trust
or other entity controlled by such Stockholder to, directly or indirectly, (i)
offer for sale, sell, transfer, tender, pledge, encumber, assign or otherwise
dispose of, or enter into any contract, option, or other arrangement or
understanding with respect to or consent to the offer for sale, sale, transfer,
tender, pledge, encumbrance, assignment or other disposition of any or all of
its Shares or any interest therein or securities convertible there into or any
voting rights with respect thereto (except, in the case of a transfer, if the
transferee (A) agrees in writing to be bound by the terms and conditions of this
Agreement and (B) with respect to any shares of Xxxx Class B Stock, would be
entitled to exercise the same voting power as was exercisable by such
Stockholder prior to such transfer), (ii) except as contemplated by this
Agreement and the Merger Agreement, grant any proxy or power of attorney with
respect to its Shares or any other voting securities of Xxxx, deposit any of its
Shares or any other voting securities of Xxxx into a voting trust or enter into
a voting agreement with respect to its Shares or any other voting securities of
Xxxx; or (iii) take any action that would have the effect of preventing or
disabling such Stockholder from performing its obligations under this Agreement.
Each Stockholder hereby agrees with, and covenants to, each other party hereto,
that such Stockholder shall not request that Xxxx register the transfer (book
entry or otherwise) of any certificate or uncertificated interest representing
any of its Shares, unless such transfer is made in compliance with this
Agreement (including the provisions of this Section 2.1).
2.2 Changes in Xxxx Stock. In the event of a stock dividend or
distribution, or any change in Todd's stock by reason of any stock dividend,
split-up, reclassification, 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 shares into which
or for which any or all of the Shares may be changed or exchanged.
ARTICLE 3
REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDERS
Each Stockholder, severally and not jointly, hereby represents and
warrants to Liberty as follows:
3.1 Due Organization; Authority Relative to this Agreement. Such
Stockholder, if it is a trust, corporation or other legal entity, is duly
organized and validly existing under the laws of the jurisdiction of its
organization. Such Stockholder has full power and authority to execute and
deliver this Agreement, to perform its obligations hereunder and to consummate
the transactions contemplated hereby. The execution and delivery of this
Agreement by such Stockholder and the performance by such Stockholder of its
obligations thereunder have been duly and validly authorized by all necessary
action on the part of such Stockholder, and no other proceedings on the part of
such Stockholder are necessary to authorize such execution, delivery and
performance.
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This Agreement has been duly and validly executed and delivered by or on behalf
of such Stockholder and, assuming its due authorization, execution and delivery
by Liberty, constitutes a legal, valid and binding obligation of such
Stockholder, enforceable against such Stockholder in accordance with its terms.
3.2 Title to Shares. Such Stockholder is the record or beneficial owner
of its Shares free and clear of all security interests, liens, claims, pledges,
options, rights of first refusal, agreements, proxy or voting restrictions,
charges and other encumbrances of any nature whatsoever, except as provided for
herein and as contemplated by the Merger Agreement, and, with respect to any
Shares held by a Stockholder as trustee for the benefit of any other person,
except for the rights of all beneficiaries under such trusts, which rights are
not inconsistent with the provisions of this Voting Agreement. Except as set
forth in the Disclosure Schedule attached to the Merger Agreement, such
Stockholder does not own or hold any rights to acquire any additional shares of
Xxxx Stock or other securities of Xxxx or any interest therein or any voting
rights with respect to any additional shares of Xxxx Stock or any other
securities of Xxxx.
3.3 No Conflict. The execution and delivery of this Agreement by such
Stockholder do not, and the performance by such Stockholder of its obligations
hereunder shall not (i) conflict with or violate the trust and/or organizational
documents of such Stockholder, (ii) conflict with or violate any order, judgment
or decree applicable to such Stockholder or by which its Shares or any of its
other securities of Xxxx are bound or affected or (iii) result in any breach of
or constitute a default (or an event that with notice or lapse of time or both
would become a default) under, or give to any other person any rights of
termination, amendment, acceleration or cancellation of, or result in the
creation of a lien or encumbrance on any of its Shares or any of its other
securities of Xxxx pursuant to, any note, bond, mortgage, indenture, contract,
agreement, lease, license, permit, franchise or other instrument or obligation
to which such Stockholder is a party or by which such Stockholder or its Shares
or its other securities of Xxxx are bound or affected, except, in the case of
clauses (ii) and (iii), for any such conflicts, violations, breaches, defaults
or other occurrences that would not prevent or delay the performance by such
Stockholder of its obligations under this Agreement.
ARTICLE 4
GENERAL
4.1 Term. This Agreement shall become effective on the date hereof and
shall continue in effect until the first to occur of (i) the termination of the
Merger Agreement in accordance with its terms (other than any such termination
following a material breach of the Merger Agreement by Xxxx or any Stockholder),
(ii) the consummation of the Merger and all other transactions contemplated by
the Merger Agreement, and (iii) the adoption by the Board of Directors of Xxxx,
by unanimous written consent or at a meeting duly convened and held in
accordance with the by-laws of Xxxx as then in effect, of a resolution
withdrawing or modifying the Xxxx Board's
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recommendation of the Merger and the Merger Agreement pursuant to Section 7.5(b)
of the Merger Agreement, in accordance with the terms thereof. Upon termination
of this Agreement, except for any rights a party may have in respect of any
breach by another party of its obligations hereunder, none of the parties hereto
shall have any further obligation or liability hereunder.
4.2 Specific Performance. The parties hereto agree that irreparable
damage would occur in the event any provision of this Agreement was not
performed in accordance with the terms hereof and that the parties shall be
entitled to specific performance of the terms hereof, in addition to any other
remedy at law or in equity. No failure or delay by any party in exercising any
right, power or privilege hereunder shall operate 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.
4.3 Entire Agreement. This Agreement (together with the Merger
Agreement and the other agreements and documents expressly contemplated hereby
and thereby) constitutes the entire agreement of the parties hereto with respect
to the subject matter hereof and supersedes all prior agreements and
understandings, both written and oral, among the parties, or any of them, with
respect to such subject matter.
4.4 Amendment. This Agreement may not be amended, changed,
supplemented, waived or otherwise modified or terminated except by an instrument
in writing signed by Liberty and each of the Stockholders affected by such
amendment, change, supplement, waiver, modification or termination.
4.5 Successors and Assigns. This Agreement shall be binding upon and
shall inure to the benefit of and be enforceable by the parties hereto and their
respective successors and assigns. Any transfer of Shares notwithstanding, the
applicable transferor shall remain liable for the performance of all obligations
under this Agreement of such transferor.
4.6 Severability. If any term or other provision of this Agreement or
the application thereof is held invalid, illegal or incapable of being enforced
to any extent by any rule of law or public policy, the remainder of this
Agreement and the application of such term or provision to the other parties or
circumstances shall not be affected thereby and shall be enforced to the
greatest extent permitted by applicable law. Upon such determination that any
term or other provision or application thereof is invalid, illegal or incapable
of being enforced, 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 a mutually
acceptable manner in order that the terms, other provisions and application of
this Agreement remain as originally contemplated and to the end that the
transactions contemplated hereby are fulfilled to the fullest extent possible.
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4.7 Captions. Captions contained in this Agreement are inserted only as
a matter of convenience and in no way define, limit, extend, or describe the
scope of this Agreement or the intent of any of its provisions.
4.8 Governing Law. This Agreement shall be governed by, and construed
in accordance with, the laws of the State of Delaware applicable to contracts
executed and to be performed entirely within that state, without reference to
rules governing conflicts of law.
4.9 Counterparts. This Agreement may be executed in any number of
counterparts, each of which when executed shall be an original instrument and
all of which taken together shall constitute one and the same agreement.
4.10 Certain Tax Matters. The parties intend the Merger to qualify as a
reorganization under Section 368(a) of the Code. Liberty covenants and agrees
that it shall not take (and shall use commercially reasonable efforts to cause
Parent not to take), and that it shall cause Liberty's subsidiaries not to
take (including, in the case of Liberty following the consummation of the
Post-Merger Restructuring Transactions, that it shall cause the Surviving
Corporation not to take) any action that would cause the Merger to fail to
qualify as a reorganization under Section 368(a) of the Code.Agreement.
ARTICLE 5
REPRESENTATIONS AND WARRANTIES OF LIBERTY
5.1 Representations and Warranties. Liberty represents and warrants to
each Stockholder that the statements in the proposed form of certificate (the
"Certificate") to be delivered by Liberty in connection with the opinions to be
delivered pursuant to Sections 8.2(f), 8.3(e) and 8.4(f) of the Merger
Agreement, a copy of which form of certificate is attached to the Merger
Agreement in Exhibit 7.14, are true and correct as of the date hereof, assuming
for purposes of this sentence that the Merger had been consummated on the date
hereof, and agrees that, at and prior to the Effective Time, Liberty will not
take any action that would cause any of the statements in the Certificate to be
false as of the Effective Time. Liberty represents and warrants, without any
investigation, that it has no reason to believe that any of the statements made
by Parent in the proposed form of certificate to be delivered by Parent
pursuant to Sections 8.2(f), 8.3(e) and 8.4(f) of the Merger Agreement, a copy
of which form of certificate is attached to the Merger Agreement in Exhibit
7.14, are not true and correct as of the date hereof, assuming for purposes of
this sentence that the Merger had been consummated on the date hereof, and has
no reason to believe that, at and prior to the Effective Time, Parent intends
to take any action that would cause any of the statements in the Certificate to
be false as of the Effective Time. Unless (and then only to the extent)
otherwise required by a "determination" (as defined in Section 1313(a)(1) of
the Code) or by a similar applicable provision of state or local income or
franchise tax law, Liberty agrees (i) to report the Merger on all tax returns
and other filings by Liberty as a tax-free
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reorganization within the meaning of Section 368(a) of the Code and (ii) not to
take (and to use commercially reasonable efforts to cause Parent not to take)
any position in any audit, administrative proceeding or litigation that is
inconsistent with the characterization of the Merger as such a reorganization.
Anything contained herein to the contrary notwithstanding, each of the
Stockholders (on behalf of itself and, in the case of a trust, on behalf of
each of the record and beneficial owners of the Shares) acknowledges and agrees
that Liberty has not made, and hereby disclaims, any representation or warranty
that Liberty has any ability, power or authority to cause Parent to take or
refrain from taking any action whatsoever.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first written above.
LIBERTY MEDIA CORPORATION
By: /s/ Xxxxxxx X. Xxxxxx
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Name: Xxxxxxx X. Xxxxxx
Title: Senior Vice President
/s/ Xxxxxxxx Xxxxx
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Xxxxxxxx Xxxxx, individually and as Trustee
for the Trusts indicated on Exhibit A
/s/ Xxxxxx X. Xxxxx
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Xxxxxx X. Xxxxx, individually and as Trustee
for the Trusts indicated on Exhibit A
