VOTING AGREEMENT
THIS VOTING AGREEMENT (“Agreement”) is entered into as of September 20, 2006, by and
between Vitria Technology, Inc., a Delaware corporation (the “Company”), and XxXxx Xxxxx
and M. Xxxx Xxxxx, individually and as joint tenants (the “Stockholders”).
RECITALS
A. The Stockholders are holders of record and the “beneficial owners” (within the meaning of
Rule 13d-3 under the Securities Exchange Act of 1934) of certain shares of common stock of the
Company.
B. Innovation Technology Group, Inc., a Delaware corporation (“Parent”), ITG
Acquisition, Inc., a Delaware corporation (“Merger Sub”), and the Company are entering into
an Agreement and Plan of Merger of even date herewith (the “Merger Agreement”) which
provides (subject to the conditions set forth therein) for the merger of Merger Sub into the
Company (the “Merger”).
C. The Stockholders are entering into this Agreement in order to induce the Company to enter
into the Merger Agreement.
AGREEMENT
The parties to this Agreement, intending to be legally bound, severally and as joint tenants,
agree as follows:
SECTION 1. CERTAIN DEFINITIONS
For purposes of this Agreement:
(a) “Company Common Stock” shall mean the common stock, par value $0.001 per share, of
the Company.
(b) “Expiration Time” shall mean the earlier of: (i) such time as the Merger Agreement
is terminated in accordance with its terms or (ii) such time as the Merger becomes effective.
(c) A Stockholder shall be deemed to “Own” or to have acquired “Ownership” of
a security if the Stockholder: (i) is the record owner (or joint record owner) of such security; or
(ii) is the “beneficial owner” (within the meaning of Rule 13d-3 under the Securities Exchange Act
of 1934) of such security (other than securities held by Xxxxx/ Xxxxx Investments, L.P.).
(d) “Person” shall mean any: (i) individual; (ii) corporation, limited liability
company, partnership or other entity; or (iii) governmental authority.
(e) “Subject Securities” shall mean: (i) all securities of the Company (including all
shares of Company Common Stock and all options, warrants and other rights to acquire shares of
Company Common Stock) Owned by the Stockholders, individually or as joint tenants, as of the date
of this Agreement; and (ii) all additional securities of the Company (including all additional
shares of Company Common Stock and all additional options, warrants and other rights to acquire
shares of Company Common Stock) of which the Stockholders acquire Ownership, individually or as
joint tenants, during the period from the date of this Agreement through the Expiration Time.
(f) A Person shall be deemed to have a effected a “Transfer” of a security if such
Person: (i) sells, encumbers, grants an option with respect to or disposes of such security or any
interest in such security to any Person; or (ii) enters into an agreement or commitment
contemplating the possible sale of, encumbrance of, grant of an option with respect to or
disposition of such security or any interest therein to any Person.
(g) Capitalized terms used but not otherwise defined in this Agreement have the meanings
assigned to such terms in the Merger Agreement.
SECTION 2. RESTRICTIONS ON TRANSFER OF SUBJECT SECURITIES AND VOTING RIGHTS
2.1 Restriction on Transfer of Subject Securities. Subject to Section 2.3, during the period
from the date of this Agreement through the Expiration Time, the Stockholders, individually and as
joint tenants, agree that they shall not cause or permit any Transfer of any of the Subject
Securities to be effected.
2.2 Restriction on Transfer of Voting Rights. During the period from the date of this
Agreement through the Expiration Time, the Stockholders, individually and as joint tenants, agree
that they shall ensure that: (a) none of the Subject Securities is deposited into a voting trust;
and (b) no proxy is granted with respect to any of the Subject Securities (other than in connection
with the Stockholders’ compliance with Section 3(a) and other than the proxy in the form attached
hereto as Exhibit A delivered to the Company pursuant to Section 3(c)), no voting agreement or
similar agreement is entered into with respect to any of the Subject Securities and no power of
attorney is granted with respect to the voting of the Subject Securities.
2.3 Permitted Transfers. Section 2.1 shall not prohibit a Transfer of Subject Securities by
the Stockholders (a) to Parent or to any wholly-owned subsidiary of Parent, (b) to any member of
the Stockholders’ immediate family, or to a trust for the benefit of Stockholder or any member of
the Stockholders’ immediate family, or (c) upon the death of either of the Stockholders, provided,
however, that, in the case of each of clauses “(a)” and “(b)” above, a Transfer referred to in
this sentence shall be permitted only if, as a precondition to such Transfer, the transferee agrees
in writing, reasonably satisfactory in form and substance to the Company, to be bound by all of the
terms of this Agreement and delivers a duly executed proxy in the form attached hereto as Exhibit A
with respect to such transferred Subject Securities.
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SECTION 3. VOTING OF SHARES.
(a) The Stockholders, individually and as joint tenants, hereby agree that, prior to the
Expiration Time, at any meeting of the stockholders of the Company, however called, and in any
written action by consent of stockholders of the Company, unless otherwise directed in writing by
the Company, the Stockholders shall cause all issued and outstanding shares of Company Common Stock
Owned by them, individually or as joint tenants, to be voted in favor of: (i) the adoption of the
Merger Agreement; and (ii) the Merger and each of the other transactions contemplated by the Merger
Agreement.
(b) Notwithstanding anything to the contrary contained in this Agreement, nothing in this
Agreement (a) limits or affects, or gives rise to any liability of the Stockholders by virtue of,
any actions taken by either one or both of the Stockholders in his or her capacity as an officer or
director of the Company, as applicable, including any actions taken in connection with the exercise
of the rights of the Company or its board of directors (or any committee thereof) under the Merger
Agreement or (b) obligates either one or both of the Stockholders to exercise any option, warrant
or other right to acquire any Company Common Stock.
(c) The Stockholders have delivered to the Company a duly executed proxy in the form attached
hereto as Exhibit A (the “Proxy”), such Proxy covering the Subject Securities. Upon the
execution of this Agreement by the Stockholders, the Stockholders hereby revoke any and all prior
proxies or powers of attorney given by the Stockholders with respect to voting of the Subject
Securities on the matters referred to in Section 3(a).
SECTION 4. REPRESENTATIONS AND WARRANTIES OF STOCKHOLDER
Each of the Stockholders, individually and in his or her capacity as a joint tenant, hereby
represents and warrants to the Company as follows:
4.1 Authorization, etc. Stockholder has the right, power and authority to execute and deliver
this Agreement and the Proxy and to perform Stockholder’s obligations hereunder and thereunder.
This Agreement and the Proxy have been duly executed and delivered by Stockholder and constitute
the legal, valid and binding obligation of Stockholder, enforceable against Stockholder in
accordance with their respective terms, subject to: (a) laws of general application relating to
bankruptcy, insolvency and the relief of debtors; and (b) rules of law governing specific
performance, injunctive relief and other equitable remedies.
4.2 No Conflicts or Consents.
(a) The execution and delivery of this Agreement and the Proxy by Stockholder does not, and
the performance of this Agreement and the Proxy by Stockholder will not: (i) conflict with or
violate any law, rule, regulation, order, decree or judgment applicable to Stockholder or by which
Stockholder or any of Stockholder’s properties is or may be bound or affected; or (ii) result in or
constitute (with or without notice or lapse of time) any breach of or default under, or give to any
other Person (with or without notice or lapse of time) any right of termination, amendment,
acceleration or cancellation of, or result (with or without notice or lapse of time) in the
creation of any encumbrance or restriction on any of the Subject Securities
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pursuant to, any Contract to which Stockholder is a party or by which Stockholder or any of
Stockholder’s affiliates or properties is or may be bound or affected.
(b) The execution and delivery of this Agreement and the Proxy by Stockholder does not, and
the performance of this Agreement and the Proxy by Stockholder will not, require any consent or
approval of any Person.
4.3 Title to Securities. As of the date of this Agreement: (a) Stockholder holds of record
(free and clear of any encumbrances) the number of outstanding shares of Company Common Stock set
forth under the heading “Shares Held of Record” on the signature page hereof; (b) Stockholder holds
(free and clear of any encumbrances) the options, warrants and other rights to acquire shares of
Company Common Stock set forth under the heading “Options and Other Rights of Xx. Xxxxx” or
“Options and Other Rights of Xx. Xxxxx,” as the case may be, on the signature page hereof; (c)
Stockholder Owns the additional securities of the Company set forth under the heading “Additional
Securities Beneficially Owned” on the signature page hereof; and (d) Stockholder does not Own any
shares of capital stock or other securities of the Company, or any option, warrant or other right
to acquire any shares of capital stock or other securities of the Company, other than the shares
and options, warrants and other rights set forth on the signature page hereof.
4.4 Representations in Merger Agreement. The representations and warranties of Parent and
Merger Sub contained in the Merger Agreement are true and correct.
SECTION 5. MISCELLANEOUS
5.1 Termination. This Agreement shall terminate, and neither the Company nor any Stockholder
shall have any rights or obligations hereunder and this Agreement shall become null and void and
have no effect, at the Expiration Time.
5.2 Further Assurances. From time to time, the Stockholders, individually and as joint
tenants, shall execute and deliver, or cause to be executed and delivered, such additional
instruments, and shall take such further actions, as the Company may reasonably request for the
purpose of carrying out and furthering the intent of this Agreement and the Proxy. Each of the
Stockholders, individually and as a joint tenant, agrees that he or she shall use his or her best
efforts to cause Parent and Merger Sub to perform their respective obligations under the Merger
Agreement, including using his or her best efforts to provide Parent with sufficient cash resources
(together with such resources of the Company as Parent is permitted to utilize in accordance with
the Merger Agreement) to pay the Merger Consideration pursuant to the Merger Agreement and
otherwise to perform Parent’s obligations under the Merger Agreement.
5.3 Notices. Any notice or other communication required or permitted to be delivered to
either party under this Agreement shall be in writing and shall be deemed properly delivered, given
and received when received at the address or facsimile telephone number set forth beneath the name
of such party below (or at such other address or facsimile telephone number as such party shall
have specified in a written notice given to the other party):
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if to the Stockholders:
at the address set forth on the signature page hereof; and
if to the Company:
Vitria Technology, Inc.
000 Xxxxxxx Xxxxx
Xxxxxxxxx, Xxxxxxxxxx 00000
Attention: Chief Financial Officer
000 Xxxxxxx Xxxxx
Xxxxxxxxx, Xxxxxxxxxx 00000
Attention: Chief Financial Officer
5.4 Severability. Any term or provision of this Agreement that is invalid or unenforceable in
any situation in any jurisdiction shall not affect the validity or enforceability of the remaining
terms and provisions hereof or the validity or enforceability of the offending term or provision in
any other situation or in any other jurisdiction. If the final judgment of a court of competent
jurisdiction declares that any term or provision hereof is invalid or unenforceable, the parties
hereto agree that the court making such determination shall have the power to limit the term or
provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or
provision with a term or provision that is valid and enforceable and that comes closest to
expressing the intention of the invalid or unenforceable term or provision, and this Agreement
shall be enforceable as so modified. In the event such court does not exercise the power granted
to it in the prior sentence, the parties hereto agree to replace such invalid or unenforceable term
or provision with a valid and enforceable term or provision that will achieve, to the extent
possible, the economic, business and other purposes of such invalid or unenforceable term.
5.5 Entire Agreement. This Agreement, the Proxy and any other documents delivered by the
parties in connection herewith constitute the entire agreement between the parties with respect to
the subject matter hereof and thereof and supersede all prior agreements and understandings between
the parties with respect thereto. No addition to or modification of any provision of this
Agreement shall be binding upon either party unless made in writing and signed by both parties.
5.6 Assignment; Binding Effect. Except as provided herein, neither this Agreement nor any of
the interests or obligations hereunder may be assigned or delegated by the Stockholders, and any
attempted or purported assignment or delegation of any of such interests or obligations shall be
void. Subject to the preceding sentence, this Agreement shall be binding upon the Stockholders and
the Stockholders’ successors and assigns, and shall inure to the benefit of the Company and its
successors and assigns. Without limiting any of the restrictions set forth in Section 2 or
elsewhere in this Agreement, this Agreement shall be binding upon any Person to whom any Subject
Securities are transferred. Nothing in this Agreement is intended to confer on any Person (other
than the Company and its successors and assigns) any rights or remedies of any nature.
5.7 Specific Performance. 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 its specific
terms or were otherwise breached. The Stockholders agree that, in the event of any breach by the
Stockholders of any covenant or obligation contained in this Agreement, the
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Company shall be entitled to: (a) a decree or order of specific performance to enforce the
observance and performance of such covenant or obligation; and (b) an injunction restraining such
breach.
5.8 Governing Law; Jurisdiction; Waiver of Jury Trial.
(a) This Agreement shall be governed by, and construed in accordance with, the laws of the
State of Delaware, regardless of the laws that might otherwise govern under applicable principles
of conflicts of laws thereof. Each of the parties hereto: (i) consents to submit itself to the
personal jurisdiction of the Court of Chancery of the State of Delaware, in the event any dispute
arises out of this Agreement; (ii) agrees that it will not attempt to deny or defeat such personal
jurisdiction by motion or other request for leave from any such court; and (iii) agrees that it
will not bring any action relating to this Agreement in any court other than the Court of Chancery
of the State of Delaware.
(b) THE STOCKHOLDERS, INDIVIDUALLY AND AS JOINT TENANTS, IRREVOCABLY WAIVE THE RIGHT TO A JURY
TRIAL IN CONNECTION WITH ANY LEGAL PROCEEDING RELATING TO THIS AGREEMENT OR THE ENFORCEMENT OF ANY
PROVISION OF THIS AGREEMENT.
5.9 Counterparts. This Agreement may be executed in separate counterparts, each of which when
so executed and delivered shall be an original, but all such counterparts shall together constitute
one and the same instrument.
5.10 Captions. The captions contained in this Agreement are for convenience of reference
only, shall not be deemed to be a part of this Agreement and shall not be referred to in connection
with the construction or interpretation of this Agreement.
5.11 Waiver. No failure on the part of the Company to exercise any power, right, privilege or
remedy under this Agreement, and no delay on the part of the Company 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. The Company shall not be deemed to have waived any claim available to the Company
arising out of this Agreement, or any power, right, privilege or remedy of the Company 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 the Company; and any such
waiver shall not be applicable or have any effect except in the specific instance in which it is
given.
5.12 Construction.
(a) For purposes of this Agreement, whenever the context requires: the singular number shall
include the plural, and vice versa; the masculine gender shall include the feminine and neuter
genders; the feminine gender shall include the masculine and neuter genders; and the neuter gender
shall include masculine and feminine genders.
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(b) The parties agree that any rule of construction to the effect that ambiguities are to be
resolved against the drafting party shall not be applied in the construction or interpretation of
this Agreement.
(c) As used in this Agreement, the words “include” and “including,” and variations thereof,
shall not be deemed to be terms of limitation, but rather shall be deemed to be followed by the
words “without limitation.”
(d) Except as otherwise indicated, all references in this Agreement to “Sections” are intended
to refer to Sections of this Agreement.
[signature page follows]
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IN WITNESS WHEREOF, the Company and the Stockholders have caused this Agreement to be executed
as of the date first written above.
COMPANY: | ||||||
VITRIA TECHNOLOGY, INC. | ||||||
By: | /s/ Xxxxxxx X. Xxxxx | |||||
Name: Xxxxxxx X. Xxxxx | ||||||
Title: Senior Vice President and Chief Financial Officer | ||||||
Address: | ||||||
Vitria Technology, Inc. | ||||||
000 Xxxxxxx Xxxxx | ||||||
Xxxxxxxxx, Xxxxxxxxxx 00000 | ||||||
Attn: Chief Financial Officer | ||||||
STOCKHOLDERS: | ||||||
/s/ XxXxx Xxxxx | ||||||
XxXxx Xxxxx | ||||||
/s/ M. Xxxx Xxxxx | ||||||
M. Xxxx Xxxxx | ||||||
XXXXX XXXXX AND M. XXXX XXXXX, | ||||||
AS JOINT TENANTS | ||||||
/s/ XxXxx Xxxxx | ||||||
XxXxx Xxxxx | ||||||
/s/ M. Xxxx Xxxxx | ||||||
M. Xxxx Xxxxx | ||||||
Address: | ||||||
000 Xxxxx Xxxxxx, Xxxxx 000 | ||||||
Xxxxx Xxxx, Xxxxxxxxxx 00000 | ||||||
Facsimile No.: (000) 000-0000 |
Options and Other | Options and Other | Additional Securities | ||||||||||
Shares Held of Record | Rights of Xx. Xxxxx | Rights of Xx. Xxxxx | Beneficially Owned | |||||||||
9,444,834
|
1,055,250 | 1,425,250 | 0 |
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EXHIBIT A
IRREVOCABLE PROXY TO VOTE STOCK OF VITRIA TECHNOLOGY, INC.
The undersigned stockholders of Vitria Technology, Inc., a Delaware corporation (the
“Company”), individually and as joint tenants, hereby irrevocably appoint the members of the Board
of Directors of the Company, a Delaware corporation, and each of them, or any other designee of the
Company, as the sole and exclusive attorneys and proxies of the undersigned, with full power of
substitution and resubstitution, to vote and exercise all voting rights (to the full extent that
the undersigned is entitled to do so) with respect to all of the issued and outstanding shares of
capital stock of the Company that now are owned of record by the undersigned and are owned of
record by the undersigned as of any record date relevant for a vote (collectively, the
“Shares”), in accordance with the terms of this Irrevocable Proxy. The Shares beneficially
owned by the undersigned stockholders of the Company as of the date of this Irrevocable Proxy are
listed on the final page of this Irrevocable Proxy. Upon the execution of this Irrevocable Proxy
by the undersigned, any and all prior proxies given by the undersigned, both individually and as
joint tenants, with respect to the voting of any Shares on the matters referred to in the third
full paragraph of this Irrevocable Proxy are hereby revoked and the undersigned, as individuals and
as joint tenants, agree not to grant any subsequent proxies with respect to such matters (other
than in connection with the Stockholders’ compliance with Section 3(a) of the Voting Agreement (as
defined below)) until after the Expiration Time (as defined in the Voting Agreement).
This Irrevocable Proxy is irrevocable, is coupled with an interest, and is granted in
connection with the Voting Agreement, dated as of the date hereof, between the Company and the
undersigned stockholders of the Company (the “Voting Agreement”) and is granted in
consideration of the Company entering into that certain Agreement and Plan of Merger (the
“Merger Agreement”) by and among Innovation Technology Group, Inc., a Delaware corporation
(“Parent”), ITG Acquisition, Inc., a Delaware corporation and a wholly owned subsidiary of
Parent (“Merger Sub”), and the Company, which Merger Agreement provides for the merger of
Merger Sub with and into the Company (the “Merger”). All capitalized terms not defined
herein shall have the meaning set forth in the Voting Agreement.
The attorneys and proxies named above, and each of them are hereby authorized and empowered by
the undersigned, at any time prior to the Expiration Time, to act as the attorney of the
undersigned and proxy to vote the Shares, and to exercise all voting rights of the undersigned with
respect to the Shares (including, without limitation, the power to execute and deliver written
consents), at every annual, special or adjourned meeting of the stockholders of the Company and in
every written consent in lieu of such meeting, in favor of:
(i) | the adoption of the Merger Agreement; and | ||
(ii) | the Merger and each of the other transactions contemplated by the Merger Agreement. |
A-1
The attorneys and proxies named above may not exercise this Irrevocable Proxy on any other
matter except as provided above. The undersigned stockholder may vote the Shares on all other
matters.
All authority herein conferred shall survive the death or incapacity of the undersigned and
any obligation of the undersigned hereunder shall be binding upon the heirs, personal
representatives, successors and assigns of the undersigned.
[signature page follows]
A-2
This Irrevocable Proxy is coupled with an interest as aforesaid and is irrevocable.
Dated: September 20, 2006
/s/ XxXxx Xxxxx | ||||||
XxXxx Xxxxx | ||||||
/s/ M. Xxxx Xxxxx | ||||||
M. Xxxx Xxxxx | ||||||
XXXXX XXXXX AND M. XXXX XXXXX, | ||||||
AS JOINT TENANTS | ||||||
/s/ XxXxx Xxxxx | ||||||
XxXxx Xxxxx | ||||||
/s/ M. Xxxx Xxxxx | ||||||
M. Xxxx Xxxxx |
Options and Other | Options and Other | Additional Securities | |||||||||||||
Shares Held of Record | Rights of Xx. Xxxxx | Rights of Xx. Xxxxx | Beneficially Owned | ||||||||||||
9,444,834
|
1,055,250 | 1,425,250 | 0 |
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