PARENT VOTING AGREEMENT
Exhibit
10.1
PARENT
VOTING AGREEMENT
THIS
VOTING AGREEMENT (this “Agreement”)
is
made and entered into as of July 16, 2007, by and among Zealous Holdings, Inc.,
a Delaware corporation (the “Company”),
and
each of the undersigned shareholders (each, a “Shareholder”)
of
Atlantic Syndication Network, Inc., a Nevada corporation (the “Parent”).
RECITALS
A. Concurrently
with the execution of this Agreement, Parent, ASNI-II., a Delaware corporation
and a wholly-owned subsidiary of Parent (“Merger
Sub”),
and
the Company have entered into an Agreement and Plan of Merger (the “Merger
Agreement”),
which
provides for the merger (the “Merger”)
of the
Company with and into Merger Sub.
B. Pursuant
to
the Merger, all of the issued and outstanding shares of capital stock of the
Company will be canceled and converted into the right to receive the
consideration set forth in the Merger Agreement upon the terms and subject
to
the conditions set forth in the Merger Agreement.
C. As
of the
date hereof, each Shareholder Beneficially Owns (as defined below) the number
of
Shares (as defined below) of capital stock of Parent.
D. In
order to
induce the Company to execute the Merger Agreement, each Shareholder undertakes
to vote its Shares as provided in this Agreement, and the execution and delivery
of this Agreement and the Proxy (as defined below) is a material condition
to
the Company’s willingness to enter into the Merger Agreement.
E. As
a
shareholder of Parent, each Shareholder will benefit from the execution and
delivery of the Merger Agreement and the consummation of the transactions
contemplated thereby.
NOW,
THEREFORE, the parties hereto hereby agree as follows:
1. Certain
Definitions.
Capitalized terms not defined herein shall have the meanings ascribed to them
in
the Merger Agreement. For purposes of this Agreement:
(a) A
Person shall be
deemed to “Beneficially
Own”
a
security if such Person has “beneficial ownership” of such securities as
determined pursuant to Rule 13d-3 under the Securities Exchange Act of
1934, as amended.
(b) “Expiration
Date”
means
the earlier to occur of (i) such date and time as the Merger shall become
effective in accordance with the terms and provisions of the Merger Agreement
and (ii) such date and time as the Merger Agreement shall have been validly
terminated pursuant to Article VII thereof.
(c) “Options”
means:
(i) all securities Beneficially Owned by a Shareholder as of the date of
this Agreement that are convertible into, or exercisable or exchangeable for,
shares of capital stock of Parent, including, without limitation, options,
warrants and other rights to acquire shares of Parent Ordinary Shares or other
shares of capital stock of Parent; and (ii) all securities of which such
Shareholder acquires Beneficial Ownership during the period from the date of
this Agreement through and including the Expiration Date that are convertible
into, or exercisable or exchangeable for, shares of capital stock of Parent,
including, without limitation, options, warrants and other rights to acquire
shares of Parent Ordinary Shares or other shares of capital stock of
Parent.
(d) “Shares”
means:
(i) all shares of capital stock of Parent Beneficially Owned by a
Shareholder as of the date of this Agreement; and (ii) all shares of
capital stock of Parent of which such Shareholder acquires Beneficial Ownership
during the period from the date of this Agreement through and including the
Expiration Date, including, without limitation, in each case, shares issued
upon
the conversion, exercise or exchange of Options, but does not mean any shares
of
capital stock of Parent disposed of by such Shareholder after the date
hereof.
2. Agreement
to Vote Shares.
(a) Until
the
Expiration Date, at every meeting of shareholders of Parent, however called,
at
every adjournment or postponement thereof, and on every action or approval
by
written consent of shareholders of Parent with respect to any of the following,
each Shareholder shall vote, to the extent not voted by the Person(s) appointed
under the Proxy (as defined below), all of its Shares or cause its Shares to
be
voted:
(i) in
favor of
(i) amending the Articles of Incorporation of the Parent to change the name
of
the Parent to “Zealous Holdings, Inc.,” (ii) amending the Articles of
Incorporation of the Parent to increase the number of shares of Parent Common
Stock which the Corporation is authorized to issue from 50,000,000 to
100,000,000 shares, (iii) amending the Articles of Incorporation of the Parent
to increase the number of shares of Parent Preferred Stock which the Parent
is
authorized to issue from 500,000 to 1,000,000 shares, (iv) amending the Articles
of Incorporation of the Parent to permit the Board of Directors of the Parent
to
issue blank check preferred stock, (vi) amending the Articles of Incorporation
of the Parent to authorize the Board of Directors to issue convertible preferred
stock, as set forth in the Certificate of Designations attached hereto as
Exhibit A, (vii) amending the Articles of Incorporation of the Parent to to
provide that 12 issued and outstanding shares of Parent Common Stock be combined
into one share of validly issued, fully paid, and nonassessable share of Common
Stock, (viii) the appointment of Xxxxxx & Xxxxxxxx LLP as the independent
certified public accountants of Parent for the year ending December 31, 2007
(ix) changing the State of incorporation of the Corporation to Delaware (x)
such
other changes to the Articles of Incorporation and/or By-Laws of the Parent
that
the Company and Board of Directors of Parent deem reasonably necessary to
accomplish the Merger and (xii) any other actions presented to holders of
shares of capital stock of Parent that would reasonably be expected to
facilitate the Merger Agreement, the issuance of the Parent Preferred Stock,
the
Merger and the other actions and transactions contemplated by the Merger
Agreement or the Proxy; and
(ii) against
approval of any proposal made in opposition to the Merger Agreement or
consummation of the Merger and the other transactions contemplated by the Merger
Agreement or the Proxy.
(b) Each
Shareholder shall not enter into any agreement or understanding with any Person
to vote or give instructions to vote in any manner inconsistent with this
Section 2.
3. Irrevocable
Proxy.
Concurrently with the execution of this Agreement, each Shareholder agrees
to
deliver to the Company an irrevocable proxy in the form attached hereto as
Exhibit A (the “Proxy”),
which
shall be irrevocable to the fullest extent permitted by applicable law, covering
all of such Shareholder’s Shares. Each Shareholder shall deliver additional
proxies in the form or Exhibit A covering any additional Shares which such
Shareholder acquires Beneficial Ownership during the period from the date of
this Agreement through and including the Expiration Date, including, without
limitation, in each case, shares issued upon the conversion, exercise or
exchange of Options.
4. Representations,
Warranties and Covenants of Each Shareholder.
Each
Shareholder, severally with respect to itself only, represents, warrants and
covenants to the Company as follows:
(a) It
is the
Beneficial Owner of the Shares and the Options.
(b) It
does not
Beneficially Own any shares of capital stock of Parent or any securities
convertible into, or exchangeable or exercisable for, shares of capital stock
of
Parent, other than the Shares and Options.
(c) It
has the
full power to dispose, vote or direct the voting of its Shares.
(d) Its
Shares
are, and at all times up to and including the Expiration Date such Shares will
be, unless disposed of by such Shareholder, Beneficially Owned by such
Shareholder, free and clear of any rights of first refusal, co-sale rights,
security interests, liens, pledges, claims, options, charges, proxies, voting
trusts or agreements, understandings or arrangements, or any other encumbrances
of any kind or nature.
(e) The
execution
and delivery of this Agreement and the Proxy by such Shareholder does not,
and
such Shareholder’s performance of its obligations under this Agreement will not
conflict with or violate any order, decree, judgment, statute, law, rule,
regulation or agreement applicable to such Shareholder and its Shares or
Options, except where such conflict or violation would not, individually or
in
the aggregate, materially impair the ability of such Shareholder to perform
his
or her obligations hereunder.
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(f) It
has all
requisite power and authority to make, enter into and perform the terms of
this
Agreement and the Proxy without limitation, qualification or restriction on
such
power and authority.
(g) Except
as
expressly contemplated herein, such Shareholder is not a party to, and its
Shares are not subject to or bound in any manner by, any contract or agreement
relating to such Shares, including without limitation, any voting agreement,
option agreement, purchase agreement, shareholders’ agreement, partnership
agreement or voting trust.
5. Consents
and Waivers.
Each
Shareholder (not in his or her capacity as a director or officer of Parent)
hereby gives all consents and waivers that may be reasonably required from
him
or her for the execution and delivery of this Agreement and the Proxy under
the
terms of any agreement or instrument to which such Shareholder is a party, which
consent or waiver is required solely because of the consummation of the Merger
in accordance with the terms of the Merger Agreement.
6. Termination.
This
Agreement and the Proxy shall terminate and shall have no further force or
effect as of the Expiration Date.
7. Shareholder
Capacity.
So long
as a Shareholder or a representative of such Shareholder is an officer or
director of Parent, nothing in this Agreement shall be construed as preventing
or otherwise affecting any actions, judgment or decisions taken by such
Shareholder in his or her capacity as an officer or director of Parent or any
of
its Subsidiaries or from fulfilling the obligations and responsibilities of
such
office (including the performance of obligations required by the fiduciary
obligations and responsibilities of such Shareholder acting solely in his or
her
capacity as an officer or director), it being agreed and understood that this
Agreement shall apply to such Shareholder solely in his or its capacity as
a
shareholder.
8. Miscellaneous.
(a) Waiver.
No
failure on the part of Parent, Company or any Shareholder to exercise any power,
right, privilege or remedy under this Agreement, and no delay on the part of
Parent, Company or such Shareholder in exercising any power, right, privilege
or
remedy under this Agreement, shall operate as a waiver of such power, right,
privilege or remedy; and no single or partial exercise of any such power, right,
privilege or remedy shall preclude any other or further exercise thereof or
of
any other power, right, privilege or remedy. Neither Parent, Company nor any
Shareholder shall be deemed to have waived any claim arising out of this
Agreement, or any power, right, privilege or remedy under this Agreement, unless
the waiver of such claim, power, right, privilege or remedy is expressly set
forth in a written instrument duly executed and delivered on behalf of Parent,
Company or such Shareholder, as appropriate; and any such waiver shall not
be
applicable or have any effect except in the specific instance in which it is
given.
(b) Notices.
All
notices and other communications hereunder shall be in writing and shall be
deemed duly given (i) on the date of delivery if delivered personally
and/or by messenger service, or (ii) on the date of confirmation of receipt
(or, the first Business Day following such receipt if the date is not a Business
Day) if delivered by a nationally recognized courier service. All notices
hereunder shall be delivered as set forth below, or pursuant to such other
instructions as may be designated in writing by the party to receive such
notice:
(a) If
to the
Parent, to:
Atlantic
Syndication Network, Inc.
X.X.
Xxx
00000
Xxx
Xxxxx, Xxxxxx 00000-0000
Att:
Xxxx
X. Xxxxx, Xx.
with
a
copy (which shall not constitute notice to:
Xxxxxxxxx
Xxxxx, P.C.
000
Xxxxx
Xxxxxx Xxxxxx
Xxxxx
0000
Xxx
Xxxxx, XX 00000
Att:
Xxxxx X. XxXxxxx
3
(b) If
to the Company,
the Shareholders or the Shareholder Representative, to:
Zealous
Holdings, Inc.
0000
Xxxxxxx Xxxx Xxxx, Xxxxx 000
Xxx
Xxxxxxx, XX 00000
Att:
Xxxxxx X. Xxxx III
with
a
copy (which shall not constitute notice to:
Xxxxx
Xxxxxxx LLP
000
Xxxxx
Xxxxxx Xxxx
Xxxxxxxxx,
XX 00000
Att:
Xxxxxx Xxxxxx
if
to a
Shareholder:
To
the
address for notices set forth below such
Shareholder’s
name on its signature page to this
Agreement.
(c) Headings.
All
captions and section headings used in this Agreement are for convenience only
and do not form a part of this Agreement.
(d) Counterparts.
This
Agreement may be executed in two or more counterparts, and by facsimile, all
of
which shall be considered one and the same agreement and shall become effective
when one or more counterparts have been signed by each of the parties and
delivered to the other parties, it being understood that all parties need not
sign the same counterpart.
(e) Entire
Agreement; Amendment.
This
Agreement and the Proxy constitute the entire agreement among the parties with
respect to the subject matter hereof and supersede all prior agreements and
understandings, both written and oral, among the parties with respect to the
subject matter hereof. This Agreement may not be changed or modified, except
by
an agreement in writing specifically referencing this Agreement and executed
by
each of the parties hereto.
(f) Severability.
In the
event that any provision of this Agreement or the application thereof, becomes
or is declared by a court of competent jurisdiction to be illegal, void or
unenforceable, the remainder of this Agreement will continue in full force
and
effect and the application of such provision to other Persons or circumstances
will be interpreted so as reasonably to effect the intent of the parties hereto.
The parties further agree to replace such void
or
unenforceable provision of this Agreement with a valid and enforceable provision
that will achieve, to the greatest extent possible, the economic, business
and
other purposes of such void or unenforceable provision.
(g) Governing
Law.
This
Agreement shall be governed by and construed in accordance with the laws of
the
State of Nevada, regardless of the laws that might otherwise govern under
applicable principles of conflicts of law thereof.
(h) Rules
of Construction.
The
parties hereto agree that they have been represented by counsel during the
negotiation and execution of this Agreement and, therefore, waive the
application of any law, regulation, holding or rule of construction providing
that ambiguities in an agreement or other document will be construed against
the
party drafting such agreement or document.
(i) Specific
Performance.
The
parties hereto 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 shall be entitled to seek an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions
hereof in any court of the United States or any state having jurisdiction,
this
being in addition to any other remedy to which they are entitled at law or
in
equity. In the event of any such proceedings to enforce this agreement, the
non-prevailing party will pay all costs and expenses incurred by the prevailing
party, including all reasonable attorneys’ and experts’ fees.
(j) Binding
Effect; No Assignment.
This
Agreement and all of the provisions hereof shall be binding upon and inure
to
the benefit of the parties hereto and their respective successors and permitted
assigns, and, except as otherwise specifically provided herein, neither this
Agreement nor any of the rights, interests or obligations of the parties hereto
may be assigned by any of the parties without the prior written consent of
the
other parties. Any purported assignment in violation of this Section 8(j) shall
be void.
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IN
WITNESS WHEREOF,
the
undersigned have executed this Agreement on the date first above written.
|
ZEALOUS
HOLDINGS, INC.
By:
/s/
Xxxxxx X. Xxxx
III
Name: Xxxxxx
X. Xxxx III
Title: Chairman
&
CEO
|
|
[COMPANY
SIGNATURE PAGE TO PARENT VOTING AGREEMENT]
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Shares
Owned: 16,513,000
Options
Owned: ______________
|
/s/
Xxxx X. Xxxxx, Xx. Sr.
|
Name:
|
|
Address
for
Notice:________________________________
|
|
|
|
|
Shares
Owned: 6,250,000
Options
Owned: ______________
|
/s/
Xxxxx Xxxxx
|
Name:
|
|
Address
for Notice:________________________________
|
|
|
|
|
[SHAREHOLDER
SIGNATURE PAGE TO PARENT VOTING AGREEMENT]
6
EXHIBIT
A
FORM
OF IRREVOCABLE PROXY
The
undersigned shareholder (“Shareholder”)
of
Atlantic Syndication Network, Inc., a Nevada Corporation (“Parent”),
hereby irrevocably (to the fullest extent permitted by law) appoints and
constitutes Xxxxxx X. Xxxx III and ____________, and each of them individually,
as the sole and exclusive attorneys-in-fact and proxies of the undersigned
with
full power of substitution and resubstitution, to vote and exercise all voting
and related rights with respect to, and to grant a consent or approval in
respect of (in each case, to the full extent that the undersigned is entitled
to
do so), all of the shares of capital stock of Parent that now are or hereafter
may be Beneficially Owned by the undersigned, and any and all other shares
or
securities of Parent issued or issuable in respect thereof on or after the
date
hereto (collectively, the “Shares”),
in
accordance with the terms of this Proxy. Any and all prior proxies heretofore
given by the undersigned with respect to any Shares are hereby revoked and
the
undersigned hereby covenants and agrees not to grant any subsequent proxies
with
respect to any Shares. Capitalized terms used and not defined herein have the
meanings assigned to them in that certain Parent Voting Agreement, dated of
even
date herewith, by and among Parent, Company and Shareholder (the “Voting
Agreement”).
This
Proxy is irrevocable (to the fullest extent permitted by law), is coupled with
an interest and is granted pursuant to the Voting Agreement, and is granted
in
consideration of the Company entering into that certain Agreement and Plan
of
Merger (the “Merger
Agreement”),
dated
as of July __, 2007, by and among Parent, Merger Sub and the Company. The Merger
Agreement provides for the merger of Merger Sub with and into the Company in
accordance with its terms (the “Merger”)
and
the receipt by the stockholders of the Company of the consideration set forth
in
the Merger Agreement.
The
attorneys-in-fact and proxies named above are hereby authorized and empowered
by
the undersigned to act as the undersigned’s attorney-in-fact and proxy to vote
the Shares, and to exercise all voting, consent and similar rights of the
undersigned with respect to the Shares (including, without limitation, the
power
to execute and deliver written consents), at every annual, special, adjourned
or
postponed meeting of shareholders of Parent and in every written consent in
lieu
of such meeting:
(i) in
favor of (i) amending the Articles of Incorporation of the Parent to change
the
name of the Parent to “Zealous Holdings, Inc.,” (ii) amending the Articles of
Incorporation of the Parent to increase the number of shares of Parent Common
Stock which the Corporation is authorized to issue from 50,000,000 to
100,000,000 shares, (iii) amending the Articles of Incorporation of the Parent
to increase the number of shares of Parent Preferred Stock which the Parent
is
authorized to issue from 500,000 to 1,000,000 shares, (iv) amending the Articles
of Incorporation of the Parent to permit the Board of Directors of the Parent
to
issue blank check preferred stock, (vi) amending the Articles of Incorporation
of the Parent to authorize the Board of Directors to issue convertible preferred
stock, as set forth in the Certificate of Designations attached hereto as
Exhibit A, (vii) amending the Articles of Incorporation of the Parent to to
provide that 12 issued and outstanding shares of Parent Common Stock be combined
into one share of validly issued, fully paid, and nonassessable share of Common
Stock, (viii) the appointment of Xxxxxx & Xxxxxxxx LLP as the independent
certified public accountants of Parent for the year ending December 31, 2007
(ix) changing the State of incorporation of the Corporation to Delaware (x)
such
other changes to the Articles of Incorporation and/or By-Laws of the Parent
that
the Company and Board of Directors of Parent deem reasonably necessary to
accomplish the Merger and (xii) any other actions presented to holders of
shares of capital stock of Parent that would reasonably be expected to
facilitate the Merger Agreement, the issuance of the Parent Preferred Stock,
the
Merger and the other actions and transactions contemplated by the Merger
Agreement or the Proxy; and
(ii) against
approval of any proposal made in opposition to the Merger Agreement or
consummation of the Merger and the other transactions contemplated by the Merger
Agreement or the Proxy. The
attorneys-in-fact and proxies named above may not exercise this Proxy with
respect to any matter other than the matters described in clauses (i) or
(ii) above, and Shareholder may vote the Shares on all other matters.
Any
obligation of the undersigned hereunder shall be binding upon the successors
and
assigns of the undersigned.
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So
long
as Shareholder or Shareholder’s representative is an officer or director of
Parent, nothing in this Proxy shall be construed as preventing or otherwise
affecting any actions, judgments or decisions taken by Shareholder in his or
her
capacity as an officer or director of Parent or any of its Subsidiaries or
from
fulfilling the obligations and responsibilities of such office (including
without limitation, the performance of obligations required by the fiduciary
obligations and responsibilities of Shareholder acting solely in his or her
capacity as an officer or director), it being agreed and understood that this
Proxy shall apply to the Shareholder solely in his or its capacity as a
shareholder.
[Signature
Page Follows]
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This
Proxy shall terminate, and be of no further force or effect, on the Expiration
Date.
[Remainder
of Page Intentionally Left Blank]
Dated:___________________,
2007
Signature:
_______________________________
Print
Name:______________________________
Address:________________________________
Shares:__________________________________
[SIGNATURE
PAGE TO PROXY]
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