Amended and Restated Series E Voting Agreement among Digirad Corporation and Series E Preferred Stock Investors

Summary

This agreement is between Digirad Corporation and both existing and new investors holding Series E Preferred Stock. It sets out how these investors must vote their shares on certain matters where Series E has special voting rights, generally requiring them to vote in proportion to the majority of all preferred stockholders. The agreement also covers how new investors can join, how amendments can be made, and that Delaware law governs the agreement. It replaces all prior related agreements and ensures that legal remedies are available for breaches.

EX-10.21 22 a2059793zex-10_21.txt EXHIBIT 10.21 EXHIBIT 10.21 AMENDED AND RESTATED SERIES E VOTING AGREEMENT This AMENDED AND RESTATED SERIES E VOTING AGREEMENT (this "Agreement") is made as of this 10th day of November 2000 by and among Digirad Corporation, a Delaware corporation (the "Company"), holders of a majority of the Series E Preferred Stock of the Company identified on SCHEDULE A attached hereto under the heading "Existing Investors" (the "Existing Investors") and each of the purchasers of the Series E Preferred Stock of the Company identified on SCHEDULE A attached hereto under the heading "New Investors" (the "New Investors"). The Existing Investors and the New Investors are collectively referred to herein as, individually, an "Investor" and, collectively, the "Investors." RECITALS A. The Company has previously sold and issued shares of its Series E Preferred Stock to the Existing Investors, pursuant to which the Existing Investors have become parties to that certain Series E Voting Agreement dated June 23, 1998, as amended by that certain Amendment Number One to the Series E Voting Agreement dated March 15, 2000 and that certain Addendum to Amendment Number One to the Series E Voting Agreement dated April 6, 2000 (collectively, the "Voting Agreement"); B. The Company desires to sell and issue shares of its Series E Preferred Stock pursuant to that certain Fourth Additional Series E Preferred Stock Purchase Agreement of even date herewith (the "Purchase Agreement"); and C. As an inducement to the New Investors to purchase shares of its Series E Preferred Stock, the Company and the Existing Investors all desire to completely amend and restate the Voting Agreement pursuant to Section 2(d) with respect to the matters set forth therein. NOW, THEREFORE, in consideration of the foregoing and of the mutual promises and covenants contained herein it is hereby agreed: 1. VOTING OF SHARES. (a) Only with respect to a proposal submitted for stockholder vote for matters on which the Series E Preferred Stock has a separate series voting right as provided by applicable law (a "Stockholder Proposal"), each Investor agrees to vote its shares of Series E Preferred Stock in connection with such separate series voting right for or against such Stockholder Proposal in the same proportion as a majority of the then outstanding shares of all series of Preferred Stock (voting as a single class) are voted or abstain. (b) Notwithstanding subsection (a) above, (i) with respect to any proposal submitted for stockholder vote that meets the criteria set forth in Article IV, Section B(8)(d) of the Amended and Restated Certificate of Incorporation, the Investor will not be subject to the restrictions of subsection(a) above. 2. SUCCESSORS AND ASSIGNS. This Agreement shall bind each Investor and each and all of the heirs, executors, administrators, personal representatives, successors, and assigns thereof, and shall inure to the benefit of the Investor, and its permitted transferees. 3. COUNTERPARTS. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original but all of which taken together shall constitute one instrument. The parties contemplate that Additional Closings may occur under the Purchase Agreement by which additional shares of Series E Preferred Stock will be sold to certain investors. Such new investors shall become party to this Agreement by executing counterpart signature pages and no further signature shall be required by the Company, the Existing Investors or the New Investors. Such investors shall be deemed to be "New Investors" and "Investors" under this Agreement for all purposes hereunder. 4. SEVERABILITY. If in any judicial proceedings, a court shall refuse to enforce any of the provisions of this Agreement, then such unenforceable provision shall be deemed modified or limited so as to effectuate, to the maximum extent possible, the parties' expressed intent, and if no such modification or limitation could render it enforceable it shall be eliminated from this Agreement, and the balance of this Agreement shall be interpreted as if such provision were so eliminated and shall be enforceable in accordance with its terms. 5. ENTIRE AGREEMENT. This Agreement constitutes the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof, and supercedes all prior agreements with regard to such subjects. 6. AMENDMENTS. This Agreement may not be amended, modified or terminated, except with the written consent of the Company and Investors holding a majority in interest of the Series E Preferred Stock. 7. GOVERNING LAW. This Agreement shall be governed by the internal laws of the State of Delaware without regard to principles of conflict of laws. 8. REMEDIES. Each of the parties hereby acknowledges and agrees that the legal remedies available, in the event the covenants and agreements made in this Agreement are violated, would be inadequate and that any party shall be entitled, without posting any bond or other security, to temporary, preliminary and permanent injunctive relief, specific performance and other equitable remedies in the event of such a violation, in addition to any other remedies which such party may have at law or in equity. 9. ATTORNEYS' FEES. In any legal proceeding arising out of this Agreement, including with respect to any instrument, document or agreement made under or in connection with this Agreement, the prevailing party shall be entitled to recover its costs and actual attorneys' fees. As used in this Agreement, "actual attorneys' fees" shall mean the full and actual cost of any legal services actually performed in connection with the matters involved, calculated on the basis of the usual hourly fees charged by the attorneys performing such services. 2 IN WITNESS WHEREOF, the undersigned have caused this agreement to be signed as of the date first set forth above. COMPANY: DIGIRAD CORPORATION: By: /s/ Scott Huennekens ------------------------------ Scott Huennekens, President Address: 9350 Trade Place San Diego, CA 92126-6334 EXISTING INVESTORS: KINGSBURY CAPITAL PARTNERS, L.P., III KINGSBURY CAPITAL PARTNERS, L.P. KINGSBURY CAPTIAL PARTNERS, L.P. II By: Kingsbury Associates, L.P., Its General Counsel By: /s/ Timothy J. Wollaeger ------------------------------ Timothy J. Wollaeger, General Partner Address: 3655 Nobel Drive, Suite 490 San Diego, CA 92122 SORRENTO GROWTH PARTNERS I, L.P. By: Sorrento Equity Growth Partners I, L.P., Its General Partner By: Sorrento Associates, Inc., Its General Partner By: /s/ Robert M. Jaffee ------------------------------ Robert M. Jaffee, President [SIGNATURE PAGE TO AMENDED AND RESTATED SERIES E VOTING AGREEMENT] SORRENTO VENTURES II, L.P. By: Sorrento Equity Partners, L.P., Its General Partner By: Sorrento Associates, Inc., Its General Partner By: /s/ Robert M. Jaffee ------------------------------ Robert M. Jaffee, President SORRENTO VENTURES III, L.P. By: Sorrento Equity Partners, III, L.P., Its General Partner By: Sorrento Associates, Inc., Its General Partner By: /s/ Robert M. Jaffee ------------------------------ Robert M. Jaffee, President SORRENTO VENTURES CE, L.P. By: Sorrento Equity Partners, III, L.P., Its General Partner By: Sorrento Associates, Inc., Its General Partner By: /s/ Robert M. Jaffe ------------------------------ Robert M. Jaffee, President Address: 4370 La Jolla Village Drive, Suite 1040 San Diego, CA 92122 [SIGNATURE PAGE TO AMENDED AND RESTATED SERIES E VOTING AGREEMENT] VECTOR LATER-STAGE EQUITY FUND, L.P. By: Vector Fund Management, II, L.L.C. Its General Partner By: /s/ Douglas Reed ------------------------------ Douglas Reed, M.D. Managing Director VECTOR LATER-STAGE EQUITY FUND II, L.P. By: Vector Fund Management, II, L.L.C. Its General Partner By: /s/ Douglas Reed Douglas Reed, M.D. ------------------------------ Managing Director VECTOR LATER-STAGE EQUITY FUND II (Q.P.), L.P. By: Vector Fund Management, II, L.L.C. Its General Partner By: /s/ Douglas Reed K. Flynn McDonald ------------------------------ Managing Director Address: 1751 Lake Cook Road, Suite 350 Deerfield, IL 60015 [SIGNATURE PAGE TO AMENDED AND RESTATED SERIES E VOTING AGREEMENT] HEALTH CARE INDEMNITY, INC. By: Columbia/HCA Healthcare Corporation Its: Investment Advisor By: /s/ James T. Glasscock ----------------------------------- Name: James T. Glasscock ----------------------------------- Its: VP, Investments ----------------------------------- Address: One Park Plaza Post Office Box 550 Nashville, TN ###-###-#### OCEAN AVENUE INVESTORS, LLC - ANACAPA FUND By: /s/ Michael Browne ----------------------------------- Michael Browne Manager OCEAN AVENUE INVESTORS, LLC - FOUNDERS FUND By: /s/ Michael Browne ----------------------------------- Michael Browne Manager OCEAN AVENUE INVESTORS, LLC - REDSTONE FUND By: /s/ Michael Browne ----------------------------------- Michael Browne Manager Address: 100 Wilshire Boulevard, Suite 1850 Santa Monica, CA 90401 [SIGNATURE PAGE TO AMENDED AND RESTATED SERIES E VOTING AGREEMENT] NEW INVESTORS: KINGSBURY CAPITAL PARTNERS, L.P., III By: Kingsbury Associates, L.P., Its General Counsel By: /s/ Timothy J. Wollaeger ----------------------------------- Timothy J. Wollaeger, General Partner Address: 3655 Nobel Drive, Suite 490 San Diego, CA 92122 KINGSBURY CAPITAL PARTNERS, L.P., IV By: Kingsbury Associates, L.P., Its General Counsel By: /s/ Timothy J. Wollaeger ----------------------------------- Timothy J. Wollaeger, General Partner Address: 3655 Nobel Drive, Suite 490 San Diego, CA 92122 VECTOR LATER-STAGE EQUITY FUND II (QP), L.P. By: Vector Fund Management II, L.L.C. Its General Partner By: /s/ Douglas Reed ----------------------------------- Douglas Reed, M.D. Managing Director [SIGNATURE PAGE TO AMENDED AND RESTATED SERIES E VOTING AGREEMENT] VECTOR LATER-STAGE EQUITY FUND II, L.P. By: Vector Fund Management, II, L.L.C. Its General Partner By: /s/ Douglas Reed ----------------------------------- Douglas Reed, M.D. Managing Director Address: 1751 Lake Cook Road, Suite 350 Deerfield, IL 60015 OCEAN AVENUE INVESTORS, LLC - ANACAPA FUND I By: /s/ Michael Browne ----------------------------------- Michael Browne Manager OCEAN AVENUE INVESTORS, LLC - FOUNDERS FUND By: /s/ Michael Browne ----------------------------------- Michael Browne Manager OCEAN AVENUE INVESTORS, LLC - REDSTONE FUND By: /s/ Michael Browne ----------------------------------- Michael Browne Manager Address: 100 Wilshire Boulevard, Suite 1850 Santa Monica, CA 90401 [SIGNATURE PAGE TO AMENDED AND RESTATED SERIES E VOTING AGREEMENT] HEALTH CARE INDEMNITY, INC. By: Columbia/HCA Healthcare Corporation Its: Investment Advisor By: /s/ James T. Glasscock ----------------------------------- Name: James Glasscock ----------------------------------- Its: VP, Investments ----------------------------------- Address: One Park Plaza Post Office Box 550 Nashville, TN ###-###-#### AUREUS DIGIRAD, LLC By: /s/ Robert M. Averick ----------------------------------- Name: Robert Averick ----------------------------------- Its: Member ----------------------------------- Address: 100 First Stamford Place Stamford, CT 06902 MERRILL LYNCH VENTURES, LLC By: /s/ Edward J. Higgins ----------------------------------- Edward J. Higgins Vice President Address: 2 World Financial Center, 31st Floor New York, NY 10281 Attn: Robert F. Tully [SIGNATURE PAGE TO AMENDED AND RESTATED SERIES E VOTING AGREEMENT] MID CAROLINA CARDIOLOGY, PA By: /s/ Stephen A. McAdams MD ----------------------------------- Its: Chief Executive Officer ----------------------------------- Name: Stephen A. McAdams ----------------------------------- Address: 1718 East 4th Street, Suite 901 Charlotte, NC 28277 Attn: Stephen A. McAdams STEPHEN ALAN MCADAMS AND LOU ANN MCADAMS, AS JOINT TENANTS By: /s/ Stephen Alan McAdams ----------------------------------- Stephen Alan McAdams By: /s/ Lou Ann McAdams ----------------------------------- Lou Ann McAdams Address: 4901 Old Course Drive Charlotte, NC 28277 AKINYELE ALUKO, M.D. /s/ Akinyele Aluko ----------------------------------- Akinyele Aluko, M.D. Address: 5725 Laurium Road Charlotte, NC 28228 [SIGNATURE PAGE TO AMENDED AND RESTATED SERIES E VOTING AGREEMENT] HARVEY FAMILY LLC By: /s/ John Harvey ----------------------------------- John Harvey, M.D. Manager Address: 2305 NW Grand Boulevard Oklahoma City, OK 73116 GFP DIGIRAD, LLC By: /s/ illegible ----------------------------------- Its: Managing Member ----------------------------------- Name: /s/ illegible ----------------------------------- Address: 4000 West Brown Deer Road Milwaukee, WI ###-###-#### Attention: Bruce Gendelman DR. JEROME WILLIAMS, JR. /s/ Jerome Williams, Jr. ----------------------------------- Dr. Jerome Williams, Jr. Address: 4534 Rosecliff Drive Charlotte, NC 28277 DWAYNE A. SCHMIDT /s/ Dwayne A. Schmidt ----------------------------------- Dwayne A. Schmidt Address: 327 Northwest 14th Street Oklahoma City, OK 73103 [SIGNATURE PAGE TO AMENDED AND RESTATED SERIES E VOTING AGREEMENT] RICHARD N. LINDER AND JUDY F. LINDER /s/ Richard N. Linder ------------------------------------------- Richard N. Linder /s/ Judy G. Linder ------------------------------------------- Judy F. Linder Address: 805 Polo Run Collierville, TN 38017 FISK VENTURES LLC By: /s/ illegible ----------------------------------- Its: Manager ----------------------------------- Address: 4041 North Main Street Post Office Box 1919 Racine, Wisconsin ###-###-#### INGLEWOOD VENTURES, LP By: /s/ Daniel C. Wood ----------------------------------- Its: Member ----------------------------------- Address: 12526 High Bluff Drive, Suite 300 San Diego, CA 92130 THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL FOUNDATION INVESTMENT FUND, INC. By: /s/ Mark W. Yusko ----------------------------------- Mark W. Yusko Its: Assistant Treasurer ----------------------------------- Address: 308 West Rosemary Street, Suite 203 Chapel Hill, NC 27516 [SIGNATURE PAGE TO AMENDED AND RESTATED SERIES E VOTING AGREEMENT] PALIVACINNI PARTNERS, LLC By: /s/ Peter K. Shagory ----------------------------------- Peter K. Shagory Its: Manager ----------------------------------- Address: 1751 Lake Cook Road, Suite 350 Deerfield, IL 60015 KINGSBURY CAPITAL PARTNERS, L.P. By: Kingsbury Associates, L.P., Its General Counsel By: /s/ Timothy J. Wollaeger ----------------------------------- Timothy J. Wollaeger, General Partner Address: 3655 Nobel Drive, Suite 490 San Diego, CA 92122 KINGSBURY CAPITAL PARTNERS, L.P., II By: Kingsbury Associates, L.P., Its General Counsel By: /s/ Timothy J. Wollaeger ----------------------------------- Timothy J. Wollaeger, General Partner Address: 3655 Nobel Drive, Suite 490 San Diego, CA 92122 [SIGNATURE PAGE TO AMENDED AND RESTATED SERIES E VOTING AGREEMENT] ANACAPA INVESTORS, LLC - ANACAPA I By: /s/ Rob Raede ----------------------------------- Rob Raede Manager Address: 32 W. Anapamu, #350 Santa Barbara, CA 93101 [SIGNATURE PAGE TO AMENDED AND RESTATED SERIES E VOTING AGREEMENT] THE ARTHUR & SOPHIE BRODY REVOCABLE TRUST DATED 4/13/89 By: /s/ illegible ----------------------------------- Its: Trustee ----------------------------------- Address: 990 Highland Drive, Suite 100 Solana Beach, CA 92075-2472 Attn: Arthur Brody MALIN BURNHAM By: /s/ Malin Burnham ----------------------------------- Malin Burnham Address: 610 West Ash Street, Suite 2000 San Diego, CA 92101-3350 DERBES FAMILY TRUST UDT DATED 4/25/86 By: /s/ Daniel W. Derbes ----------------------------------- Daniel W. Derbes Its: Trustee ----------------------------------- Address: c/o Signal Ventures 777 South Pacific Coast Highway, Suite 107 Solana Beach, CA 92075 Attn: Dan Derbes ELLIOT FEUERSTEIN TRUST DATED 5/14/82 By: /s/ Elliot Feuerstein ----------------------------------- Its: Trustee ----------------------------------- Address: 8924 Mira Mesa Boulevard San Diego, CA 92126 Attn: Elliot Feuerstein [SIGNATURE PAGE TO AMENDED AND RESTATED SERIES E VOTING AGREEMENT] STANLEY & MAXINE FIRESTONE TRUST DATED 12/2/88 By: Stanley Firestone - TTEE ----------------------------------- Its: /s/ Stanley Firestone ----------------------------------- Address: c/o Malibu Clothes 259 South Beverly Drive Beverly Hills, CA 90212 Attn: Stanley Firestone THE STANLEY E. AND PAULINE M. FOSTER TRUST DATED 7/31/81 By: /s/ Stanley Foster ----------------------------------- Its: Trustee ----------------------------------- Address: 705 12th Avenue San Diego, CA 92101 Attn: Stanley E. Foster [SIGNATURE PAGE TO AMENDED AND RESTATED SERIES E VOTING AGREEMENT] JOAN P. KATZ TRUSTEE OF NON-EXEMPT TRUST "C" UNDER IRA R. & JOAN K. KATZ QUALIFIED MARITAL TRUST By: /s/ Joan P. Katz ----------------------------------- Its: Trustee ----------------------------------- Address: c/o Evergreen Wealth Management 7911 Herschel Avenue, #311 La Jolla, CA 92037 Attn: Alan Aielo KNOWLES FAMILY TRUST By: /s/ illegible ----------------------------------- Its: Trustee ----------------------------------- Address: c/o Wall Street Property Company 1250 Prospect Avenue, Suite 200 La Jolla, CA 92038 Attn: Raymond V. Knowles ARTHUR E. NICHOLAS By: /s/ Arthur Nicholas ----------------------------------- Its: ----------------------------------- Address: c/o Nicholas-Applegate Capital Management 600 West Broadway, 29th Floor San Diego, CA 92101 Attn: Maureen Brown [SIGNATURE PAGE TO AMENDED AND RESTATED SERIES E VOTING AGREEMENT] PAGE TRUST DATED 3/3/89 By: /s/ illegible ----------------------------------- Its: Trustee ----------------------------------- Address: 1904 Hidden Crest Drive El Cajon, CA 92019 Attn: Tom Page FORREST N. SHUMWAY & PATRICIA K. SHUMWAY MARITAL TRUST DTD 4/26/94 By: /s/ Forrest Shumway ----------------------------------- Its: ----------------------------------- Address: 9171 Towne Centre Drive, Suite 410 San Diego, CA 92122-1238 Attn: Forrest N. Shumway [SIGNATURE PAGE TO AMENDED AND RESTATED SERIES E VOTING AGREEMENT] SCHEDULE A EXISTING INVESTORS Johnson & Johnson Development Corporation Kingsbury Capital Partners L.P., III Sorrento Growth Partners I, L.P. Sorrento Ventures II, L.P. Sorrento Ventures III, L.P. Sorrento Ventures CE, L.P. Vector Later-Stage Equity Fund, L.P. Vector Later-Stage Equity Fund II, L.P. Vector Later-Stage Equity Fund II (Q.P.), L.P. Ocean Avenue Investors - Founders Fund Ocean Avenue Investors - Redstone Fund Ocean Avenue Investors - Anacapa Fund I Health Care Indemnity, Inc. Mitsui & Co., Ltd. MVC Global Japan Fund I Page Trust DTD 03/03/89 Elliot Feuerstein Trust DTD 05/14/82 NEW INVESTORS Kingsbury Capital Partners L.P., III Kingsbury Capital Partners L.P., IV Vector Later-Stage Equity Fund II, L.P. Vector Later-Stage Equity Fund II (Q.P.), L.P. Ocean Avenue Investors, LLC - Anacapa Fund I Health Care Indemnity, Inc. Aureus Digirad, LLC Merrill Lynch Ventures, LLC Mid Carolina Cardiology, PA Stephen Alan McAdams and Lou Ann McAdams, As Joint Tenants Akinyele Aluko, M.D. Harvey Family LLC GFP Digirad Dr. Jerome Williams, Jr. Dwayne A. Schmidt Richard N. Linder and Judy F. Linder Fisk Ventures LLC Inglewood Ventures, LP The University of North Carolina at Chapel Hill Foundation Investment Fund, Inc. Palivaccini Partners, LLC Kingsbury Capital Partners L.P., Kingsbury Capital Partners L.P., II Anacapa Investors, LLC - Anacapa I Kingsbury Capital Partners, L.P. Kingsbury Capital Partners, L.P. II A-1 The Arthur & Sophie Brody Revocable Trust dated 4/13/89 Malin Burnham Derbes Family Trust udt Dated 4/25/86 Elliot Feuerstein Trust Dated 5/14/82 Stanley & Maxine Firestone Trust Dated 12/2/88 The Stanley E. And Pauline M. Foster Trust dtd 7/31/81 Ira R. & Joan P. Katz Qualified Marital Trust Knowles Family Trust Arthur E. Nicholas Page Trust Dated 3/3/89 Forrest N. Shumway & Patricia K. Shumway Marital Trust DTD 4/26/94 A-2