FORM OF VOTING AGREEMENT
Exhibit 99.1
FORM
OF VOTING AGREEMENT
This VOTING AGREEMENT (this “Agreement”) is dated as of March 10, 2008, by and between
the undersigned holder (“Shareholder”) of one or more shares of common stock, par value
$1.00 per share (“Company Common Stock”), of MASSBANK Corp., a Delaware corporation (the
“Company”), and Eastern Bank Corporation, a Massachusetts corporation (“Buyer”).
All capitalized terms used but not defined herein shall have the meanings assigned to them in the
Merger Agreement (defined below).
WHEREAS, concurrently with the execution of this Agreement, Buyer, the Company, Merger Sub,
Company Bank and Buyer Bank are entering into an Agreement and Plan of Merger (as such agreement
may be subsequently amended or modified, the “Merger Agreement”), pursuant to which Merger
Sub shall merge with and into the Company and, in connection therewith, each outstanding share of
Company Common Stock will be converted into the right to receive the Merger Consideration;
WHEREAS, Shareholder owns the shares of Company Common Stock identified on Exhibit A
hereto (such shares, together with all shares of Company Common Stock subsequently acquired by
Shareholder during the term of this Agreement, including through the exercise of any stock option
or other equity award, warrant or similar instrument, as well as all shares that are allocated to
such shareholder under the Company’s Employee Stock Ownership Plan (the “ESOP”) but not
including any other shares held by the ESOP, being referred to as the “Shares”); and
WHEREAS, it is a condition to the willingness of Buyer to enter into the Merger Agreement that
Shareholder execute and deliver this Agreement.
NOW, THEREFORE, in consideration of the promises, representations, warranties and agreements
contained herein, and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the parties hereto agree as follows:
Section 1. Agreement to Vote Shares. Shareholder agrees that, prior to the Expiration
Date (as defined in Section 8), at any meeting of shareholders of the Company, however called, or
at any adjournment or postponement thereof, or in connection with any written consent of the
shareholders of the Company, except as otherwise agreed to in writing in advance by Buyer,
Shareholder shall:
| (a) | appear at each such meeting, in person or by proxy, and thereby cause the Shares to be counted as present thereat for purposes of calculating a quorum; and | ||
| (b) | from and after the date hereof until the Expiration Date, vote (or cause to be voted), in person or by proxy, or deliver a written consent (or cause a consent to be delivered) with respect to, all the Shares (whether acquired heretofore or hereafter) that are beneficially owned by Shareholder, or as to which Shareholder has, directly or indirectly, the right to vote or direct the voting, (i) in favor of approval of the Merger Agreement; (ii) against any action or agreement that |
| would reasonably be expected to result in a breach of any covenant, representation or warranty or any other obligation or agreement of the Company contained in the Merger Agreement or of Shareholder contained in this Agreement; and (iii) against any Acquisition Proposal or any other action, agreement or transaction that is intended, or could reasonably be expected, to materially impede, interfere or be inconsistent with, delay, discourage or materially and adversely affect consummation of the transactions contemplated by the Merger Agreement or any of Shareholder’s obligations under this Agreement. |
Section 2. No Inconsistent Agreements. Shareholder hereby agrees that Shareholder
shall not enter into any voting agreement or grant a proxy or power of attorney with respect to
such the Shares that is inconsistent with Shareholder’s obligations under this Agreement.
Section 3. No Transfers From and after the date hereof until the Expiration Date and
except as contemplated by this Agreement or the Merger Agreement, Shareholder agrees not to,
directly or indirectly, sell, transfer, pledge, assign or otherwise dispose of, or enter into any
contract option, commitment or other arrangement or understanding with respect to the sale,
transfer, pledge, assignment or other disposition of, any of the Shares, except the following
transfers shall be permitted: (a) transfers by will or operation of law, in which case this
Agreement shall bind the transferee, (b) transfers pursuant to any pledge agreement, subject to the
pledgee agreeing in writing to be bound by the terms of this Agreement, (c) transfers in connection
with estate or tax planning or similar purposes, including transfers to relatives, trusts,
foundations and charitable organizations, subject to the transferee first agreeing in writing to be
bound by the terms of this Agreement, and (d) such transfers as Buyer may otherwise permit in its
sole discretion. Any transfer or other disposition in violation of the terms of this Section 3
shall be null and void.
Section 4. Representations and Warranties of Shareholder. Shareholder represents and
warrants to and agrees with Buyer as follows:
| (a) | Shareholder has all requisite capacity and authority to enter into and perform his, her or its obligations under this Agreement. | ||
| (b) | This Agreement has been duly executed and delivered by Shareholder, and assuming the due authorization, execution and delivery by Buyer, constitutes the valid and legally binding obligation of Shareholder enforceable against Shareholder in accordance with its terms (except as such enforceability may be limited by the Bankruptcy and Equity Exception). | ||
| (c) | The execution and delivery of this Agreement by Shareholder does not, and the performance by Shareholder of his, her or its obligations hereunder and the consummation by Shareholder of the transactions contemplated hereby will not, violate or conflict with, or constitute a default under, any agreement, instrument, contract or other obligation or any order, arbitration award, judgment or decree to which Shareholder is a party or by which Shareholder is bound, or any statute, rule or regulation to which Shareholder is subject or, in the event that Shareholder |
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| is a corporation, partnership, trust or other entity, any charter, bylaw or other organizational document of Shareholder. | |||
| (d) | Shareholder is the record and beneficial owner of, or is the trustee that is the record holder of, and whose beneficiaries are the beneficial owners of, and has good title to all of the Shares set forth on Exhibit A hereto, and the Shares are so owned free and clear of any liens, security interests, charges or other encumbrances, except as otherwise described on Exhibit A hereto. Shareholder does not own, of record or beneficially, any shares of capital stock of Company other than the Shares (other than shares of capital stock subject to stock options over which Shareholder will have no voting rights until the exercise of such stock options). The Shares do not include shares over which Shareholder exercises control in a fiduciary capacity and no representation by Shareholder is made thereby pursuant to the terms hereof. Shareholder has the right to vote the Shares (unless otherwise noted on Exhibit A), and none of the Shares is subject to any voting trust or other agreement, arrangement or restriction with respect to the voting of the Shares, except as contemplated by this Agreement. |
Section 5. Irrevocable Proxy. Subject to the last sentence of this Section 5, by
execution of this Agreement, Shareholder does hereby appoint Buyer with full power of substitution
and resubstitution, as Shareholder’s true and lawful attorney and irrevocable proxy, to the full
extent of Shareholder’s rights with respect to the Shares, to vote, if Shareholder is unable to
perform his, her or its obligations under this Agreement, each of such Shares that Shareholder
shall be entitled to so vote with respect to the matters set forth in Section 1 hereof at any
meeting of the shareholders of the Company, and at any adjournment or postponement thereof, and in
connection with any action of the shareholders of the Company taken by written consent.
Shareholder intends this proxy to be irrevocable and coupled with an interest hereafter until the
Expiration Date and hereby revokes any proxy previously granted by Shareholder with respect to the
Shares. Notwithstanding anything contained herein to the contrary, this irrevocable proxy shall
automatically terminate upon the Expiration Date of this Agreement.
Section 6. No Solicitation. Except as otherwise expressly permitted under Section 6.5
of the Merger Agreement, from and after the date hereof until the Expiration Date, Shareholder, in
his, her or its capacity as a shareholder of the Company, shall not, nor to the extent applicable
to Shareholder, shall such Shareholder authorize any partner, officer, director, advisor or
representative of, such Shareholder or any of his, her or its affiliates to (and, to the extent
applicable to Shareholder, such Shareholder shall use reasonable best efforts to prohibit any of
his, her or its representatives or affiliates to), (a) initiate, solicit, induce, knowingly
encourage, or knowingly take any action that would reasonably be expected to materially facilitate
the making of, any offer, or proposal which constitutes, or could reasonably be expected to lead
to, an Acquisition Proposal, (b) participate in any discussions or negotiations regarding any
Acquisition Proposal, or furnish or otherwise afford access to any Person (other than Buyer, Buyer
Bank and Merger Sub) any information or data with respect to the Company or any of its Subsidiaries
or otherwise relating to an Acquisition Proposal, (c) enter into any agreement, including, without
limitation, any agreement in principle, letter of intent, memorandum of understanding or similar
arrangement with respect to an Acquisition Proposal, (d) solicit proxies or become a “participant”
in a “solicitation” (as such terms are defined in
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Regulation 14A under the Exchange Act) with respect to an Acquisition Proposal (other than the
Merger Agreement) or otherwise encourage or assist any party in taking or planning any action that
would reasonably be expected to compete with, restrain or otherwise serve to interfere with or
inhibit the timely consummation of the Merger in accordance with the terms of the Merger Agreement,
(e) initiate a shareholders’ vote or action by consent of the Company’s shareholders with respect
to an Acquisition Proposal, or (f) except by reason of this Agreement, become a member of a “group”
(as such term is used in Section 13(d) of the Exchange Act) with respect to any voting securities
of Company that takes any action in support of an Acquisition Proposal.
Section 7. Specific Performance; Remedies; Attorneys Fees. Shareholder acknowledges
that it is a condition to the willingness of Buyer to enter into the Merger Agreement that
Shareholder execute and deliver this Agreement and that it will be impossible to measure in money
the damage to Buyer if Shareholder fails to comply with the obligations imposed by this Agreement
and that, in the event of any such failure, Buyer will not have an adequate remedy at law or in
equity. Accordingly, Shareholder agrees that injunctive relief or other equitable remedy, in
addition to remedies at law or in damages, is the appropriate remedy for any such failure and will
not oppose the granting of such relief on the basis that Buyer has an adequate remedy at law.
Shareholder further agrees that Shareholder will not seek, and agrees to waive any requirement for,
the securing or posting of a bond in connection with Buyer’s seeking or obtaining such equitable
relief. Shareholder also agrees that if Shareholder fails to comply in any material respect with
the obligations imposed by this Agreement, Shareholder shall pay to Buyer all of Buyer’s reasonable
costs and expenses (including attorneys’ fees) in connection with enforcing its rights under this
Agreement. In addition, after discussing the matter with Shareholder, Buyer shall have the right
to inform any third party that Buyer reasonably believes to be, or to be contemplating,
participating with Shareholder or receiving from Shareholder assistance in violation of this
Agreement, of the terms of this Agreement and of the rights of Buyer hereunder, and that
participation by any such persons with Shareholder in activities in violation of Shareholder’s
agreement with Buyer set forth in this Agreement may give rise to claims by Buyer against such
third party.
Section 8. Term of Agreement; Termination. As used in this Agreement, the term
“Expiration Date” shall mean the earlier to occur of (a) the Effective Time, (b) such date
and time as the Merger Agreement shall be terminated pursuant to Article VIII thereof, or (c) upon
mutual written agreement of the parties to terminate this Agreement. Shareholder shall have the
right to terminate this Agreement if the Merger Agreement is amended to decrease the Merger
Consideration, provided that Shareholder sends notice to Buyer of Shareholder’s election to
terminate within five (5) Business Days after the public announcement of such amendment, in which
case the “Expiration Date” shall mean the date Buyer receives such notice. Upon termination or
expiration, no party shall have any further obligations or liabilities hereunder; provided,
however, such termination shall not relieve any party from liability for any willful breach of this
Agreement prior to such termination.
Section 9. Entire Agreement; Amendments. This Agreement supersedes all prior
agreements, written or oral, among the parties hereto with respect to the subject matter hereof and
contains the entire agreement among the parties with respect to the subject matter hereof. This
Agreement may not be amended, supplemented or modified, and no provisions hereof may be modified or
waived, except by an instrument in writing signed by each party hereto. No
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waiver of any provision hereof by either party shall be deemed a waiver of any other provision
hereof by any such party, nor shall any such waiver be deemed a continuing waiver of any provision
hereof by such party.
Section 10. Severability. In the event that any one or more provisions of this
Agreement shall for any reason be held invalid, illegal or unenforceable in any respect, by any
court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provisions of this Agreement and the parties shall use their reasonable efforts to
substitute a valid, legal and enforceable provision which, insofar as practical, implements the
purposes and intents of this Agreement.
Section 11. Further Assurances. Shareholder shall, from time to time, execute and
deliver, or cause to be executed and delivered, such additional or further consents, documents and
other instruments as Buyer may reasonably request for the purpose of effectively carrying out the
transactions contemplated by this Agreement.
Section 12. Capacity as Shareholder. The covenants contained herein shall apply to
Shareholder solely in his or her capacity as a shareholder of the Company, and no covenant
contained herein shall apply to Shareholder in his or her capacity as a director, officer or
employee of the Company or in any other capacity. Nothing contained in this Agreement shall be
deemed to apply to, or limit in any manner, the obligations of Shareholder to comply with whatever
fiduciary duties he or she may have as a director, officer or employee of the Company.
Section 13. Governing Law. This Agreement shall be governed by, and interpreted in
accordance with, the laws of the state of Delaware, without regard to the conflict of law
principles thereof.
Section 14. No Agreement Until Executed. Irrespective of negotiations among the
parties or the exchanging of drafts of this Agreement, this Agreement shall not constitute or be
deemed to evidence a contract, agreement, arrangement or understanding between the parties hereto
unless and until (a) the Merger Agreement is executed by all parties thereto, and (b) this
Agreement is executed by Shareholder and Buyer.
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IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the
date first written above.
| EASTERN BANK CORPORATION | ||||||
| By: | ||||||
| Name: | ||||||
| Title: | ||||||
Signature Page to Voting Agreement
EXHIBIT A
SHARES OF COMPANY COMMON STOCK BENEFICIALLY OWNED BY SHAREHOLDER
| Shareholder | Shares1 | Plan Shares | Options | |||||||||
| 1 | Shares include shares allocable to Shareholder’s account under the Company’s employee stock ownership, deferred investment or other similar plan of the Company. If Shareholder does not have the power to vote any of such Shares, they are included under the column titled “Plan Shares.” |
