SCHEDULE 5.1.4
Voting Agreement
SHAREHOLDER VOTING AGREEMENT
THIS SHAREHOLDER VOTING AGREEMENT, dated as of September 18, 2007 (this "Voting Agreement"), is between High End Ventures, Inc., a Colorado corporation (the "Company") Ahluwalia Family Trust, Kimberly Parr, Roman Hrycysyn Family Trust, Tannery Ltd., Hari Rao, Vimla Rao, Jay Rao, Prya Rao, Krishna Datta, 4045653 Canada Inc. (each a "Holder" and collectively, the "Holders").
WITNESSETH:
Whereas the Company and Electrolinks Corporation (“Electrolinks”) have entered into a Business Combination Agreement (“Combination Agreement”) whereby the Company shall acquire all the outstanding common shares of Electrolinks from the shareholders of Electrolinks in exchange for Company common stock; and
Whereas, the Holders, individually or as trustees or custodians, subsequent to the closing of the Combination Agreement shall be the beneficial owners of 5,326,000 shares or collectively in excess of fourteen percent (14%) of the issued and outstanding shares of the Company's common stock (such shares, along with all other shares of capital stock of the Company acquired by each Holder subsequent to the date hereof, are referred to herein collectively as the "Subject Shares"); and
Whereas, as a condition of entering into the Combination Agreement, the Company has requested that the Holders agree, and the Holders have agreed, among other things, to vote and commit the Subject Shares to the election of Nadir Walji to the Company’s board of directors upon the terms and subject to the conditions set forth herein.
Now, therefore, in consideration of the premises and the mutual representations, agreements and covenants hereinafter set forth, and intending to be legally bound hereby, the parties hereto hereby agree as follows:
(a) Each Holder agrees to vote the Subject Shares, at any special or annual meeting of the shareholders, that is held within three (3) years of the closing of the Combination Agreement, in favor of electing Nadir Walji as one (1) of no more than three (3) persons elected or appointed at any one time to the Company’s board of directors during the given term.
(b) Prior to the expiration of the three (3) year term of commitment to elect Nadir Walji, the Holders shall not enter into any agreement or understanding with any person to vote or give instructions in any manner inconsistent with the preceding paragraph (a).
(c) Each Holder will not vote in any manner whatsoever any of the Subject Shares except in accordance with this Voting Agreement.
(d) Each Holder will be permitted to sell the Subject Shares in accordance with the United States Securities Act of 1933, as amended.
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(e) No person executing this Voting Agreement who is or becomes during the term hereof a director of the Company, or any successor thereof, makes any agreement or understanding herein in his or her capacity as such director. Each Holder signs solely in his or her capacity as the owner of the Subject Shares.
2. Representations and Warranties of the Holder. Each Holder hereby represents and warrants to the Company, severally and not jointly, that:
(a) this Voting Agreement has been duly executed and delivered by such Holder and is the legal, valid and binding obligation of such Holder;
(b) no consent of any governmental entity, beneficiary, co-trustee or other person is necessary for the execution, delivery and performance of this Voting Agreement by the Holder;
(c) such Holder shall own the Subject Shares free and clear of any encumbrance other than this Voting Agreement and does not own, directly or indirectly, any other shares of the Company's common stock or any option, warrant or other right to acquire any shares of the Company's common stock;
| (d) | such Holder shall have the power and right to vote all of the Subject Shares; and |
(e) except as provided herein, such Holder has not (i) granted any power-of-attorney or other authorization or interest with respect to any of the Subject Shares, (ii) deposited any of the Subject Shares into a voting trust, or (iii) entered into any prior voting agreement or other arrangement with respect to any of the Subject Shares.
3. Representations and Warranties of the Company. The Company hereby represents and warrants to each of the Holders that:
(a) this Voting Agreement has been duly executed and delivered by the Company, and is the legal, valid and binding obligation of the Company; and
(b) no consent of any governmental entity, beneficiary, co-trustee or other person is necessary for the execution, delivery and performance of this Voting Agreement by the Company.
4. Covenants of the Holders. Each Holder hereby agrees and covenants that during the period between the date hereof and the Expiration Date (as defined hereinafter), any shares of capital stock of the Company (including, without limitation, the Company's common stock) that any Holder purchases or with respect to which such Holder otherwise acquires beneficial ownership (including by reason of stock dividends, split-ups, recapitalizations, combinations, exchanges of shares or the like) shall be considered Subject Shares and subject to each of the terms and conditions of this Voting Agreement;
5. Expiration Date. This Voting Agreement shall expire on the earliest of (a) the expiration of the three (3) year term of commitment to elect Nadir Walji; (b) the date on which this Voting Agreement is validly terminated; and (c) November 9, 2010 (such earliest date being referred to herein as the "Expiration Date").
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6. Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, telecopy or by registered or certified mail (postage prepaid, return receipt requested) or by overnight courier to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 6):
Company:
High End Ventures, Inc. – 2610-1066 West Hastings Street, Vancouver, British Columbia V6E 3X2
Holders:
NAME | ADDRESS | ELECTROLINKS SHARES | HIGH END SHARES |
Ahluwalia Family Trust | 480-151 Bloor St. West, Toronto, ON M5S 1S4 | 2,000,000 | 1,000,000 |
Kimberly Parr | 480-151 Bloor St. West, Toronto, ON M5S 1S4 | 1,250,000 | 625,000 |
Hrycyshyn Family Trust | 200-2285 Bloor St. West, Toronto, ON M6S 1P1 | 2,000,000 | 1,000,000 |
Tannery Ltd | 485-181 Bloor St. West, Toronto, ON M5S 1S4 | 1,382,000 | 691,000 |
Hari Rao | 55 Shalom Crescent, Toronto, ON M9V 2J3 | 820,000 | 410,000 |
Vimla Rao | 55 Shalom Crescent, Toronto, ON M9V 2J3 | 300,000 | 150,000 |
Jay Rao | 602-5 Mariner Terrace, Toronto, ON M5V 3V6 | 250,000 | 125,000 |
Prya Rao | 215-217 Wellington St. West, Toronto, ON M5V 3P5 | 250,000 | 125,000 |
Krishna Datta | 36 Blue Jays Way, Toronto, ON M5V 3T3 | 400,000 | 200,000 |
4045653 Canada Inc. | 480-151 Bloor St. West, Toronto, ON M5S 1S4 | 2,000,000 | 1,000,000 |
TOTAL | | 10,652,000 | 5,326,000 |
7. | Amendments; No Waivers. |
(a) Any provision of this Voting Agreement may be amended or waived prior to the Expiration Date if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by the Company and each of the Holders or in the case of a waiver, by the party against whom the waiver is to be effective.
(b) No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.
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8. Expenses. All costs and expenses incurred in connection with this Voting Agreement shall be paid by the party incurring such cost or expense.
9. Successors and Assigns. The provisions of this Voting Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided, that no party may assign, delegate or otherwise transfer any of its rights or obligations under this Voting Agreement without the prior written consent of the other party hereto.
10. Non-Survival of Representations and Warranties. All representations, warranties and agreements made by the Holders and the Company in this Voting Agreement shall promptly terminate upon the Expiration Date.
11. Parties in Interest. Nothing in this Voting Agreement is intended to provide any rights or remedies to any Person other than the parties hereto.
12. Counterparts. This Voting Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed an original but all of which taken together shall constitute one and the same agreement.
13. Governing Law. This Voting Agreement will be construed and enforced in accordance with and governed by the laws of the State of Colorado, without reference to principles of conflicts of law. Each of the parties consents to the jurisdiction of the federal courts whose districts encompass any part of the State of Colorado in connection with any dispute arising under this Voting Agreement and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on forum non conveniens, to the bringing of such proceeding in such jurisdictions.
14. Jury Trial Waiver. EACH PARTY HERETO HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING INSTITUTED BY EITHER OF THEM AGAINST THE OTHER THAT PERTAINS DIRECTLY OR INDIRECTLY TO THIS VOTING AGREEMENT.
15. Specific Performance. The parties hereto agree that irreparable damage would occur in the event any provision of this Voting Agreement was not performed in accordance with the terms hereof and that, in addition to any remedy to which they are entitled at law or in equity, the parties shall be entitled to an injunction or injunctions to prevent breaches of this Voting Agreement and to enforce specifically the terms and provisions of this Voting Agreement without the need to post a bond or prove special damages.
16. Interpretation. The descriptive headings contained in this Voting Agreement are included for convenience of reference only and shall not affect in any way the meaning or interpretation of this Voting Agreement. When a reference is made in this Voting Agreement to a Section, such reference shall be to a Section of this Voting Agreement unless otherwise indicated. Whenever the words "include," "includes" or "including" are used in this Voting Agreement they shall be deemed to be followed by the words "without limitation."
17. Entire Agreement. This Voting Agreement and the related irrevocable proxy constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior written and oral and all contemporaneous agreements and understandings with respect to the subject matter hereof. Each party acknowledges and agrees that no other party hereto makes any representations or warranties, whether express or implied, other than the express representations and warranties contained herein.
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18. Severability. If any term or other provision of this Voting Agreement is held to be invalid or unenforceable by a court of competent jurisdiction, this Voting Agreement shall be interpreted and enforceable as if such provision were severed or limited, but only to the extent necessary to render such provision of this Voting Agreement enforceable.
IN WITNESS WHEREOF, each of the parties hereto has executed this Voting Agreement as of the date first set forth above.
Company - High End Ventures, Inc. |
/s/ Nadir Walji
Chief Executive Officer
Holders
By: /s/ Balbir Ahluwalia
Name Balbir Ahluwalia
Title Trustee
/s/ Kimberly Parr
Kimberly Parr
Hrycyshyn Family Trust
By: /s/ Roman Hrycyshyn
Name Roman Hrycyshyn
Title Trustee
Tannery Ltd
By: /s/ Frank Cunardi
Name Frank Cunardi
Title President
/s/ Hari Rao
Hari Rao
Vilma Rao
/s/ Vilma Rao
Vilma Rao
Jay Rao
/s/ Jay Rao
Jay Rao
Pyra Rao
/s/ Pyra Rao
Krishna Datta
/s/ Krishna Datta
Krishna Datta
4045653 Canada Inc.
By: /s/ Wayne Owens
Name Wayne Owens
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