Exhibit 11
SHAREHOLDER AGREEMENT
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SHAREHOLDER AGREEMENT (this "Agreement"), dated as of November 22, 1998,
among GE Fanuc Automation North America, Inc., a Delaware corporation
("Parent"), Orion Merger Corp., an Illinois corporation and a wholly owned
subsidiary of Parent ("Sub"), and the undersigned shareholder (the
"Shareholder") of Total Control Products, Inc., an Illinois corporation (the
"Company").*
WHEREAS, Parent, Sub and the Company, propose to enter into an Agreement
and Plan of Merger dated as of even date herewith (as the same may be amended or
supplemented, the "Merger Agreement") to provide for the making of a cash tender
offer (as such offer may be amended from time to time, the "Offer") by Sub for
any and all Common Shares, no par value, of the Company (the "Common Stock") at
the Offer Price (as defined in the Merger Agreement) and the merger of the
Company and Sub (the "Merger");
WHEREAS, the Shareholder legally and/or beneficially owns that number of
shares of Common Stock appearing on the signature page hereof (such shares, as
they may be adjusted by any stock dividend, stock split, recapitalization,
combination or exchange of shares, merger, consolidation, reorganization or
other change or transaction of or by the Company (each, an "Adjustment Event")
being referred to herein as the "Subject Shares"); and
WHEREAS, as a condition to their willingness to enter into the Merger
Agreement, Parent and Sub have requested that the Shareholder enter into this
Agreement;
NOW, THEREFORE, to induce Parent and Sub to enter into, and in
consideration of their entering into, the Merger Agreement, and in consideration
of the premises and the representations, warranties and agreements contained
herein, the parties agree as follows:
1. Representations and Warranties of the Shareholder. The Shareholder
hereby represents and warrants to Parent and Sub as follows:
(a) Authority. The Shareholder has all requisite power and authority
to enter into this Agreement and to consummate the transactions
contemplated hereby. This Agreement has been duly authorized, executed and
delivered by the Shareholder and constitutes a valid and binding obligation
of the Shareholder enforceable in accordance with its terms. The execution
and delivery of this Agreement does not, and the consummation of the
transactions contemplated hereby and compliance with the terms hereof will
not, conflict with, or result in any violation of, or default (with or
without notice or lapse of time or both) under any provision of, any trust
agreement, loan or credit agreement, note, bond, mortgage, indenture, lease
or other agreement, instrument, permit, concession, franchise, license,
judgment, order, notice, decree, statute, law, ordinance, rule or
regulation applicable to the Shareholder or to the Shareholder's property
or assets. Except for the expiration or termination of the waiting period
under the HSR Act and
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*Form to be signed by Gihl, Xxxxxxxxx and Xxxxxx.
informational filings with the SEC, no consent, approval, order or
authorization of, or registration, declaration or filing with, any court,
administrative agency or commission or other governmental authority or
instrumentality, domestic, foreign or supranational, is required by or with
respect to the Shareholder in connection with the execution and delivery of
this Agreement or the consummation by the Shareholder of the transactions
contemplated hereby.
(b) The Shares. The Shareholder has good and marketable title to the
Subject Shares, free and clear of any claims, liens, encumbrances and
security interests whatsoever. The Shareholder owns no shares of Common
Stock other than the Subject Shares.
2. Representations and Warranties of Parent and Sub.
(a) Authority. Parent and Sub hereby represent and warrant to the
Shareholder that each of Parent and Sub has all requisite corporate power
and authority to enter into this Agreement and to consummate the
transactions contemplated hereby. The execution and delivery of this
Agreement by Parent and Sub, and the consummation of the transactions
contemplated hereby, have been duly authorized by all necessary corporate
action on the part of Parent and Sub. This Agreement has been duly
executed and delivered by Parent and Sub and constitutes a valid and
binding obligation of Parent and Sub enforceable in accordance with its
terms.
3. Covenants of the Shareholder. The Shareholder agrees as follows:
(a) At any meeting of shareholders of the Company called to vote upon
the Merger and the Merger Agreement or at any adjournment thereof or in any
other circumstances upon which a vote, consent or other approval with
respect to the Merger and the Merger Agreement is sought, the Shareholder
shall vote (or cause to be voted) the Subject Shares in favor of the
Merger, the approval of the Merger Agreement and the approval of the terms
thereof and each of the other transactions contemplated by the Merger
Agreement, provided that the terms of the Merger Agreement shall not have
been amended to adversely affect the Shareholder.
(b) At any meeting of shareholders of the Company or at any
adjournment thereof or in any other circumstances upon which the
Shareholder's vote, consent or other approval is sought, the Shareholder
shall vote (or cause to be voted) the Subject Shares against (i) any merger
agreement or merger (other than the Merger Agreement and the Merger),
consolidation, combination, sale of substantial assets, reorganization,
recapitalization, dissolution, liquidation or winding up of or by the
Company or any other Takeover Proposal or (ii) any amendment of the
Company's articles of incorporation or by-laws or other proposal or
transaction involving the Company or any of its subsidiaries, which
amendment or other proposal or transaction would in any manner impede,
frustrate, prevent or nullify the Merger, the Merger Agreement or any of
the other transactions contemplated by the Merger Agreement.
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(c) The Shareholder agrees not to (i) sell, transfer, pledge, assign
or otherwise dispose of, or enter into any contract, option or other
arrangement (including any profit sharing arrangement) with respect to the
sale, transfer, pledge, assignment or other disposition of, the Subject
Shares to any person other than Sub or Sub's designee or (ii) enter into
any voting arrangement, whether by proxy, voting agreement or otherwise, in
connection, directly or indirectly, with any Takeover Proposal.
(d) The Shareholder shall not, nor shall the Shareholder permit any
investment banker, attorney or other adviser or representative of the
Shareholder to, (i) directly or indirectly solicit, initiate or encourage
the submission of, any Takeover Proposal or (ii) directly or indirectly
participate in any discussions or negotiations regarding, or furnish to any
person any information with respect to, or take any other action to
facilitate any inquiries or the making of any proposal that constitutes, or
may reasonably be expected to lead to, any Takeover Proposal.
(e) So long as the Merger Agreement has not been terminated, the
Shareholder shall tender pursuant to the Offer, and not withdraw, all of
the Subject Shares.
4. Further Assurances. The Shareholder will, from time to time, execute
and deliver, or cause to be executed and delivered, such additional or further
transfers, assignments, endorsements, consents and other instruments as Parent
or Sub may reasonably request for the purpose of effectively carrying out the
transactions contemplated by this Agreement.
5. Assignment. Neither this Agreement nor any of the rights, interests or
obligations hereunder shall be assigned by any of the parties without the prior
written consent of the other parties, except that Sub may assign, in its sole
discretion, any or all of its rights, interests and obligations hereunder to
Parent or to any direct or indirect wholly owned subsidiary of Parent. Subject
to the preceding sentence, this Agreement will be binding upon, inure to the
benefit of and be enforceable by the parties and their respective successors and
assigns and, in the case of the Shareholder, the heirs, executors and
administrators of the Shareholder.
6. Termination. Except as provided otherwise herein, this Agreement shall
terminate upon the earlier of (i) the Effective Time (as defined in the Merger
Agreement) and (ii) the termination of the Merger Agreement in accordance with
its terms; provided, however, that this Agreement will not terminate until 120
days after termination pursuant to clause (ii) immediately above if (A) the
Merger Agreement is terminated by Parent or Sub pursuant to Section 8.1(d)
thereof, (B) the Merger Agreement is terminated by the Company pursuant to
Section 8.1(e) thereof or (C) unless the Company has terminated the Merger
Agreement pursuant to Section 8.1(f) or Section 8.1(g) thereof, prior to the
termination, a Takeover Proposal (as defined in the Merger Agreement) shall have
been commenced or the Company shall have entered into an agreement with respect
to, approved or recommended or taken any action to facilitate, a Takeover
Proposal.
7. General Provisions.
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(a) Expenses. Each party hereto shall pay its own expenses incurred
in connection with this Agreement, except as specified in the Merger
Agreement.
(b) 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 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 thereof having jurisdiction,
this being in addition to any other remedy to which they are entitled at
law or in equity. Each party hereby irrevocably submits to the exclusive
jurisdiction of the United States District Court for the Northern District
of Illinois in any action, suit or proceeding arising in connection with
this Agreement, and agrees that any such action, suit or proceeding shall
be brought only in such courts (and waives any objection based on forum non
conveniens or any other objection to venue therein). Each party hereto
waives any right to a trial by jury in connection with any such action,
suit or proceeding.
(c) Notice. All notices, requests, demands and other communications
hereunder shall be deemed to have been duly given and made if in writing
and if served by personal delivery upon the party for whom it is intended
or if sent by telex or telecopier (and also confirmed in writing) to the
person at the address set forth below, or such other address as may be
designated in writing hereafter, in the same manner, by such person:
(i) if to Parent or Sub, to:
GE Fanuc Automation North America, Inc.
Xxxxx 00 xxx Xxxxx 000
Xxxxxxxxxxxxxxxx, Xxxxxxxx 00000
Attention: President and CEO
Facsimile No.: 000-000-0000
for overnight courier deliveries, to:
GE Fanuc Automation North America, Inc.
Xxxxx 00 Xxxxx xxx Xxxxx 000
Xxxxxxxxxxxxxxx, Xxxxxxxx 00000
Attention: Senior Vice President and General Counsel
with copies to:
GE Fanuc Automation North America, Inc.
X.X. Xxx 0000
Xxxxxxxxxxxxxxx, Xxxxxxxx 00000
Attention: Senior Vice President and General Counsel
Facsimile No.: 000-000-0000
and
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Sidley & Austin
Xxx Xxxxx Xxxxxxxx Xxxxx
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxxx X. Xxxx
Xxxxxx X. Xxxxxxx
Facsimile No.: 312-853-7036
(ii) if to the Shareholder, to:
Xxxxxx Xxxxxxxxx
000 Xxxxx Xxxx
Xxxx Xxxxx, Xxxxxxx 00000
Facsimile No.: 000-000-0000
with a copy to:
X'Xxxxxx & Xxxxxx
00 Xxxxx XxXxxxx - Xxxxx 0000
Xxxxxxx, Xxxxxxxx
Attention: Xxxx Xxxxxx
Facsimile No.: 000-000-0000
(d) Parties in Interest. This Agreement shall inure to the benefit
of and be binding upon the parties named herein and their respective
successors and assigns. Nothing in this Agreement, expressed or implied,
is intended to confer upon any Person other than Parent, Sub or the
Shareholder, or their permitted successors or assigns, any rights or
remedies under or by reason of this Agreement.
(e) Entire Agreement; Amendments. This Agreement contains the entire
agreement between the parties hereto with respect to the subject matter
hereof and supersedes all prior and contemporaneous agreements and
understandings, oral or written, with respect to such transactions. This
Agreement may not be changed, amended or modified orally, but only by an
agreement in writing signed by the party against whom any waiver, change,
amendment, modification or discharge may be sought.
(f) Headings. The section headings herein are for convenience only
and shall not affect the construction of this Agreement.
(g) Counterparts. This Agreement may be executed in one or more
counterparts, each of which, when executed, shall be deemed to be an
original and all of which together shall constitute one and the same
document.
(h) Governing Law. Except to the extent that the laws of the State
of Illinois are mandatorily applicable to the Merger, this Agreement shall
be governed by, and construed in accordance with, the laws of the State of
New York, regardless of the laws that might otherwise govern under
applicable principles of conflicts of laws thereof.
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(i) Capitalized Terms. Capitalized terms not otherwise defined in
this Agreement shall have the meanings set forth in the Merger Agreement.
(j) Severability. If any term or other provision of this Agreement
is invalid, illegal or incapable of being enforced by any rule of law, or
public policy, all other conditions and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic and
legal substance of the transactions contemplated hereby are not affected in
any manner materially adverse to any party. Upon such determination that
any term or other provision is invalid, illegal or incapable of being
enforced, the parties shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as
possible in a mutually acceptable manner in order that the transactions
contemplated by this Agreement may be consummated as originally
contemplated to the fullest extent possible.
8. No Limitations on Actions of the Shareholder as a Director.
Notwithstanding anything to the contrary in this Agreement, nothing in this
Agreement is intended or shall be construed to require the Shareholder to take
or in any way limit any action that the Shareholder may take to discharge the
Shareholder's fiduciary duties as a director of the Company.
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IN WITNESS WHEREOF, each of Parent, Sub and the Shareholder has caused this
Agreement to be signed by its officer thereunto duly authorized and the
Shareholder has signed this Agreement, all as of the date first written above.
GE FANUC AUTOMATION NORTH
AMERICA, INC.
By: /s/ Xxx Xxxxx
Xxx Xxxxx, President
ORION MERGER CORP.
By: /s/ Xxxxxx X. Xxxx
Xxxxxx X. Xxxx, Vice President
SHAREHOLDER
/s/ Xxxxxx X. Xxxxxxxxx
Xxxxxx X. Xxxxxxxxx
Number of shares of Common Stock owned by the
Shareholder on the date hereof:
1,728,721
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