Exhibit 2.2
VOTING
AGREEMENT
This Voting Agreement (Agreement) is made and
entered into as of February 20,
2008, by and between Kratos Defense & Security Solutions, Inc., a
Delaware corporation (the Parent)
and, the undersigned shareholder (Shareholder)
of SYS, a California corporation (the Company). Certain capitalized terms used in this
Agreement that are not defined herein shall have the meaning given to such
terms in the Merger Agreement (as defined below).
RECITALS
WHEREAS,
Shareholder is the holder of record and the beneficial owner (within the
meaning of Rule 13d-3 under the Securities Exchange Act of 1934) of
certain shares of common stock of the Parent;
WHEREAS,
concurrently with the execution and delivery of this Agreement, Parent, White
Shadow, Inc., a California corporation and wholly owned subsidiary of
Parent (Merger Sub)
and the Company are entering into an Agreement and Plan of Merger and
Reorganization (the Merger
Agreement) which provides, upon the terms and subject to the
conditions set forth therein, for the merger of Merger Sub with and into the
Company (the Merger); and
WHEREAS,
as a condition and inducement to Parents willingness to enter into the Merger
Agreement, Shareholder has agreed to execute and deliver this Agreement.
NOW,
THEREFORE, the parties to this Agreement, intending to be
legally bound, agree as follows:
1. Agreement to Vote Shares.Prior
to the Termination Date, at every meeting of the shareholders of the Company
called with respect to any of the following, and at every adjournment or
postponement thereof, and on every action or approval by written consent of the
shareholders of the Company with respect to any of the following, Shareholder
shall vote the Subject Securities: (a) in
favor of approval and adoption of the Merger and the Merger Agreement and in
favor of any matter that could reasonably be expected to facilitate the Merger,
(b) against any proposal for any Acquisition Transaction, other than the
Merger, between the Company and any person or entity (other than Parent or
Merger Sub) and (c) against any other action or agreement that would
result in a breach of any covenant, representation or warranty or any other
obligation or agreement of the Company under the Merger Agreement or which could
result in any of the conditions to the consummation of the Merger under the
Merger Agreement not being fulfilled.
2. Irrevocable Proxy.Concurrently with
the execution of this Agreement, Shareholder agrees to deliver to Parent a
proxy in the form attached hereto (the Proxy),
which shall be irrevocable to the extent provided in Section 705 of the California
General Corporation Law, with respect to the shares referred to therein.
3. Agreement
to Retain Shares.
(a) Restriction on Transfer. Except as otherwise provided in Section 3(c),
during the period from the date of this Agreement through the Termination Date,
Shareholder
shall not, directly or indirectly, cause or permit any Transfer of any
of the Subject Securities to be effected.
(b) Restriction on Transfer of Voting Rights. During the period from the date of
this Agreement through the Termination Date, Shareholder shall ensure
that: (a) none of the Subject
Securities is deposited into a voting trust; and (b) no proxy (other than
the Proxy granted herein) is granted, and no voting agreement or similar
agreement is entered into, with respect to any of the Subject Securities.
(c) Permitted Transfers. Section 3(a) shall not prohibit a
transfer of Company Common Stock by Shareholder (a) if Shareholder is an
individual, (i) to any member of Shareholders immediate family, or to a
trust for the benefit of Shareholder or any member of Shareholders immediate
family, or (ii) upon the death of Shareholder, or (b) if Shareholder
is a partnership or limited liability company, to one or more partners or
members of Shareholder or to an affiliated corporation under common control
with Shareholder; provided,
however, that a transfer referred to in this sentence shall be
permitted only if, as a precondition to such transfer, the transferee agrees in
a writing, reasonably satisfactory in form and substance to Parent, to be bound
by the terms of this Agreement and delivers a proxy to Parent in substantially
the form of the Proxy attached hereto.
4. Waiver of Appraisal Rights.Shareholder
hereby irrevocably and unconditionally waives any rights of appraisal, any
dissenters rights and any similar rights relating to the Merger or any related
transaction that Shareholder may have by virtue of any outstanding shares of Company
Common Stock Owned by Shareholder.
5. Representations, Warranties and Covenants of Shareholder.Shareholder
hereby represents and warrants to Parent as follows:
(a) Due Authorization, Etc.
All consents, approvals, authorizations and orders necessary for the
execution and delivery by Shareholder of this Agreement and the Proxy have been
obtained, and Shareholder has full right, power and authority to enter into
this Agreement and the Proxy. This
Agreement and the Proxy have been duly executed and delivered by Shareholder
and constitute valid and binding agreements of Shareholder enforceable in
accordance with their terms, except as the same may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws now or hereafter in
effect relating to creditors rights generally and subject to general
principles of equity.
(b) No Conflict. The execution and delivery of this Agreement
and the Proxy by Shareholder do not, and the performance of this Agreement and
the Proxy by Shareholder will not (i) conflict with or violate any law,
rule, regulation, order, decree or judgment applicable to Shareholder or by
which he or it or any of his or its properties is or may be bound or affected;
or (ii) result in or constitute any breach of or default under, or give to
any other Person any right of termination, amendment, acceleration or
cancellation of, or result in the creation of any encumbrance or restriction on
any of the Subject Securities pursuant to, any contract to which Shareholder is
a party or by which Shareholder or any of his or its affiliates or properties
is or may be bound or affected.
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(c) Title to Securities. As of the date of this Agreement: (a) Shareholder holds of record (free
and clear of any encumbrances or restrictions) the number of outstanding shares
of Company Common Stock set forth under the heading Shares Held of Record on
the signature page hereof; (b) Shareholder holds (free and clear of
any encumbrances or restrictions) the options, warrants and other rights to
acquire shares of Company Common Stock set forth under the heading Options and
Other Rights on the signature page hereof; (c) Shareholder Owns the
additional securities of the Parent set forth under the heading Additional
Securities Beneficially Owned on the signature page hereof; and (d) Shareholder
does not directly or indirectly Own any shares of capital stock or other
securities of the Parent, or any option, warrant or other right to acquire (by
purchase, conversion or otherwise) any shares of capital stock or other
securities of the Parent, other than the shares and options, warrants and other
rights set forth on the signature page hereof.
(d) Accuracy of Representations. The representations and warranties contained
in this Agreement are accurate in all respects as of the date of this
Agreement, and will be accurate in all respects at all times through the
Termination Date.
6. Additional
Covenants of Shareholder.
(a) Further Assurances.
From time to time and without additional consideration, Shareholder
shall (at Shareholders sole expense) execute and deliver, or cause to be
executed and delivered, such additional transfers, assignments, endorsements,
proxies, consents and other instruments, and shall (at Shareholders sole
expense) take such further actions, as Compnay may request for the purpose of
carrying out and furthering the intent of this Agreement.
7. Miscellaneous.
(a) Survival of Representations, Warranties and Agreements. All representations and warranties made by Shareholder
in this Agreement shall survive (i) the consummation of the Merger, and (ii) the
Termination Date.
(b) Assignment; Binding Effect. Except as provided herein, neither this
Agreement nor any of the interests or obligations hereunder may be assigned or
delegated by Shareholder, 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 Shareholder and his heirs, estate, executors
and personal representatives and his or its successors and assigns, and shall
inure to the benefit of Parent and its successors and assigns. Without limiting any of the restrictions set
forth in Section 3(a) 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 Parent and its successors and
assigns) any rights or remedies of any nature.
(c) Specific Performance.
The parties agree that irreparable damage would occur in the event that
any of the provisions of this Agreement or the Proxy were not performed in
accordance with its specific terms or were otherwise breached. Shareholder agrees that, in the event of any
breach or threatened breach by Shareholder of any covenant or obligation
contained
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in this Agreement or in the Proxy, Parent shall be entitled (in addition
to any other remedy that may be available to it, including monetary damages) to
seek and obtain (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 or threatened breach. Shareholder further agrees that neither Parent
nor any other Person shall be required to obtain, furnish or post any bond or
similar instrument in connection with or as a condition to obtaining any remedy
referred to in this Section 7(c), and Shareholder irrevocably waives any
right he or it may have to require the obtaining, furnishing or posting of any
such bond or similar instrument.
(d) Waiver. No failure on
the part of Parent to exercise any power, right, privilege or remedy under this
Agreement, and no delay on the part of Parent 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. Parent shall not be deemed to have waived any
claim available to Parent arising out of this Agreement, or any power, right,
privilege or remedy of Parent 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; and any such waiver
shall not be applicable or have any effect except in the specific instance in
which it is given.
(e) Governing Law; Venue. This Agreement and all acts and transactions
pursuant hereto and the rights and obligations of the parties hereto shall be
governed, construed and interpreted in accordance with the laws of the State of
Delaware, without giving effect to principles of conflicts or choice of
law. Any legal action or other legal
proceeding relating to this Agreement or the Proxy or the enforcement of any
provision of this Agreement or the Proxy may be brought or otherwise commenced
in any state or federal court located in the State of Delaware. Shareholder:
(i) expressly
and irrevocably consents and submits to the jurisdiction of each state and
federal court located in the State of Delaware in connection with any such
legal proceeding;
(ii) agrees
that service of any process, summons, notice or document by U.S. mail addressed
to him or it at the address set forth on the signature page hereof shall
constitute effective service of such process, summons, notice or document for
purposes of any such legal proceeding;
(iii) agrees
that each state and federal court located in the State of Delaware shall be
deemed to be a convenient forum; and
(iv) agrees
not to assert (by way of motion, as a defense or otherwise), in any such legal
proceeding commenced in any state or federal court located in the State of
Delaware, any claim that Shareholder is not subject personally to the
jurisdiction of such court, that such legal proceeding has been brought in an
inconvenient forum, that the venue of such proceeding is improper or that this
Agreement or the subject matter of this Agreement may not be enforced in or by
such court.
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Nothing contained in this
Section 7(e) shall be deemed to limit or otherwise affect the right
of Parent to commence any legal proceeding or otherwise proceed against Shareholder
in any other forum or jurisdiction.
HOLDER IRREVOCABLY WAIVES
THE RIGHT TO A JURY TRIAL IN CONNECTION WITH ANY LEGAL PROCEEDING RELATING TO
THIS AGREEMENT OR THE PROXY OR THE ENFORCEMENT OF ANY PROVISION OF THIS
AGREEMENT OR THE PROXY.
(f) Counterparts. This Agreement may be executed in two or more
counterparts (including by facsimile), each of which shall be deemed an
original and all of which together shall constitute one instrument.
(g) 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.
(h) Titles and Subtitles. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.
(i) Notices. Any notice required or permitted by this
Agreement shall be in writing and shall be deemed sufficient upon receipt, when
delivered personally or by courier, overnight delivery service or confirmed
facsimile, or forty-eight (48) hours after being deposited in the regular mail
as certified or registered mail (airmail if sent internationally) with postage
prepaid, if such notice is addressed to the party to be notified at such partys
address or facsimile number as set forth below, or as subsequently modified by
written notice.
(j) Attorneys Fees. If any legal action or other legal proceeding
relating to this Agreement or the enforcement of any provision of this
Agreement is brought against Shareholder, the prevailing party shall be
entitled to recover reasonable attorneys fees, costs and disbursements (in
addition to any other relief to which the prevailing party may be entitled).
(k) Severability. If one or more provisions of this Agreement
are held to be unenforceable under applicable law, the parties agree to
renegotiate such provision in good faith, in order to maintain the economic
position enjoyed by each party as close as possible to that under the provision
rendered unenforceable. In the event
that the parties cannot reach a mutually agreeable and enforceable replacement
for such provision, then (i) such provision shall be excluded from this
Agreement, (ii) the balance of the Agreement shall be interpreted as if
such provision were so excluded and (iii) the balance of the Agreement
shall be enforceable in accordance with its terms.
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(l) Construction.
(i) 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.
(ii) 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.
(iii) 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.
(iv) Except
as otherwise indicated, all references in this Agreement to Sections and Exhibits
are intended to refer to Sections of this Agreement and Exhibits to this
Agreement.
8. 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) Shareholder
shall be deemed to Own
or to have acquired Ownership
of a security if Shareholder is the beneficial owner within the meaning of Rule 13d-3
under the Securities Exchange Act of 1934 of such security.
(c) Person shall mean any (i) individual,
(ii) corporation, limited liability company, partnership or other entity,
or (iii) Governmental Body.
(d) 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 Shareholder 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 Shareholder acquires Ownership during
the period from the date of this Agreement through the Termination Date.
(e) The
term Termination Date
means the earlier to occur of the date of the consummation of the transactions
contemplated by the Merger Agreement or the date the Merger Agreement
terminates in accordance with its terms.
(f) A
Person shall be deemed to have a effected a Transfer
of a security if such Person directly or indirectly: (i) sells, pledges,
encumbers, grants an option with respect to, transfers or disposes of such
security or any interest in such security to any Person other than Parent; (ii) enters
into an agreement or commitment contemplating the possible sale of, pledge of,
encumbrance of, grant of an option with respect to, transfer of or disposition
of such security
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or any interest
therein to any Person other than Parent; or (iii) reduces such Persons
beneficial ownership of, interest in or risk relating to such security.
[Signature page follows.]
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The parties have caused
this Agreement to be duly executed on the date first above written.
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PARENT:
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Kratos
Defense & Security Solutions, Inc.
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By:
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Name:
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Eric M. DeMarco
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Title:
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Chief Executive
Officer, President
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Address for
notices:
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4810 Eastgate
Mall
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San Diego, CA
92121
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SHAREHOLDER:
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Name:
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Address for
notices:
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Shares
Held of Record
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Options and Other Rights
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Shares Beneficially Owned
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IRREVOCABLE
PROXY
The undersigned shareholder
(the Shareholder)
of SYS., a California corporation (the Company),
hereby irrevocably (to the full extent permitted by Section 705 of the California
General Corporation Law) appoints Eric M. DeMarco, Chief Executive Officer and
President and Deanna H. Lund, Senior Vice President and Chief Financial Officer
of Kratos Defense & Security Solutions, Inc., a Delaware corporation
(the Parent), and each
of them, as the sole and exclusive attorneys and proxies of the undersigned,
with full power of substitution and resubstitution, to vote and exercise all
voting and related rights expressly provided herein (to the full extent that
the undersigned is entitled to do so) with respect to (i) the outstanding
shares of capital stock of the Company owned of record by the Shareholder as of
the date of this proxy (the Proxy),
which shares are specified on the final page of this Proxy, and (ii) any
and all other shares of capital stock of the Company which the Shareholder may
acquire on or after the date hereof.
(The shares of the capital stock of the Company referred to in clauses (i)
and (ii) of the immediately preceding sentence are collectively referred to
as the Shares.) Upon the undersigneds execution of this
Proxy, any and all prior proxies given by the undersigned with respect to any
Shares are hereby revoked and the undersigned agrees not to grant any
subsequent proxies with respect to the Shares at any time prior to the
Termination Date (as defined below).
This Proxy is irrevocable
(to the extent permitted by Section 705 of the California General
Corporation Law), is coupled with an interest and is granted pursuant to that
certain Voting Agreement of even date herewith, by and between Parent and the
undersigned Shareholder, and is granted in consideration of Parent entering
into that certain Agreement and Plan of Merger and Reorganization (the Merger Agreement), of even
date herewith, by and among the Company, Parent and White Shadow, Inc., a
California corporation (Merger
Sub). The Merger
Agreement provides for the merger of Merger Sub with and into the Company (the Merger). As used herein, the term Termination Date shall mean
the earlier to occur of (i) the date and time as the Merger shall become
effective in accordance with the terms and provisions of the Merger Agreement,
or (ii) the date the Merger Agreement shall terminate in accordance with
its terms.
The attorneys and proxies
named above, and each of them, are hereby authorized and empowered by the
undersigned, at any time prior to the Termination Date, to act as the
undersigneds attorney and proxy to vote the Shares, and to exercise all voting
and other rights of the undersigned with respect to the Shares (including,
without limitation, the power to execute and deliver written consents pursuant
to Section 603 of the California General Corporation Law), at every
annual, special or adjourned meeting of the Stockholders of the Company and in
every written consent in lieu of such meeting:
(i) in favor of approval and adoption of the Merger and the Merger
Agreement and in favor of any matter that could reasonably be expected to
facilitate the Merger, (ii) against any proposal for any Acquisition
Transaction, other than the Merger, between the Company and any person or
entity (other than Parent or Merger Sub) and (iii) against any other
action or agreement that would result in a breach of any covenant,
representation or warranty or any other obligation or agreement of the Company
under the Merger Agreement or which could result in any of the conditions to
the consummation of the Merger under the Merger Agreement not being fulfilled.
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The Shareholder may vote
the Shares on all other matters not referred to in this Proxy, and the
attorneys and proxies named above may not exercise this Proxy with respect to
such other matters.
This Proxy shall be
binding upon the heirs, estate, executors, personal representatives, successors
and assigns of the Shareholder (including any transferee of any of the Shares).
If any provision of this Proxy
or any part of any such provision is held under any circumstances to be invalid
or unenforceable in any jurisdiction, then (a) such provision or part
thereof shall, with respect to such circumstances and in such jurisdiction, be
deemed amended to conform to applicable laws so as to be valid and enforceable
to the fullest possible extent, (b) the invalidity or unenforceability of
such provision or part thereof under such circumstances and in such
jurisdiction shall not affect the validity or enforceability of such provision
or part thereof under any other circumstances or in any other jurisdiction, and
(c) the invalidity or unenforceability of such provision or part thereof
shall not affect the validity or enforceability of the remainder of such
provision or the validity or enforceability of any other provision of this Proxy. Each provision of this Proxy is separable
from every other provision of this Proxy, and each part of each provision of
this Proxy is separable from every other part of such provision.
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Dated:
February 20, 2008
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(Signature of Shareholder)
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(Print Name of Shareholder)
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Number of shares
of common stock of the Company owned of record as of the date of this Proxy:
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