Opinion ID: 1952721
Heading Depth: 1
Heading Rank: 18

Heading: Voting Agreements

Text: Outcalt and Shaw, in their capacity as NCS stockholders, entered into voting agreements with Genesis. NCS was also required to be a party to the voting agreements by Genesis. Those agreements provided, among other things, that:  Outcalt and Shaw were acting in their capacity as NCS stockholders in executing the agreements, not in their capacity as NCS directors or officers;  Neither Outcalt nor Shaw would transfer their shares prior to the stockholder vote on the merger agreement;  Outcalt and Shaw agreed to vote all of their shares in favor of the merger agreement; and  Outcalt and Shaw granted to Genesis an irrevocable proxy to vote their shares in favor of the merger agreement.  The voting agreement was specifically enforceable by Genesis. The merger agreement further provided that if either Outcalt or Shaw breached the terms of the voting agreements, Genesis would be entitled to terminate the merger agreement and potentially receive a $6 million termination fee from NCS. Such a breach was impossible since Section 6 provided that the voting agreements were specifically enforceable by Genesis.