EXHIBIT 10.3
EXECUTION VERSION
VOTING AGREEMENT
This
VOTING AGREEMENT (this “ Agreement ”) is entered
into as of November 28, 2006, by and among AG Home Health LLC, a
Delaware limited liability company (“ Parent ”),
AG Home Health Acquisition Corp., a Delaware corporation (“
Acquisition Corp. ”), and each of the persons listed
on Schedule A hereto (each a “ Principal
Shareholder ” and, collectively, the “ Principal
Shareholders ”). Each capitalized term used but not
otherwise defined herein shall have the meaning ascribed to such
term in the Agreement and Plan of Merger, dated as of the date
hereof (as amended, supplemented and otherwise modified from time
to time, the “ Merger Agreement ”), by and among
Parent, Acquisition Corp. and National Home Health Care Corp., a
Delaware corporation (the “ Company
”).
WHEREAS,
concurrently with the execution and delivery of this Agreement, the
Company, Parent and Acquisition Corp. are entering into the Merger
Agreement which provides, subject to the terms and conditions set
forth in the Merger Agreement, for the merger of Acquisition Corp.
and the Company (the “ Merger ”), whereby the
issued and outstanding shares (“ Outstanding Common
Shares ”) of the Company’s common stock, par value
$.001 per share (“ Company Common Stock ”)
(other than any Outstanding Common Shares owned by Parent,
Acquisition Corp. or any other wholly owned Subsidiary of Parent,
and other than such Outstanding Common Shares to be contributed by
Frederick Fialkow in accordance with the terms of the Contribution
Agreement) will be converted into the right to receive the Merger
Consideration in cash;
WHEREAS,
the Board of Directors of the Company (the “ Board
”) has, unanimously (i) approved the Merger Agreement, the
Merger and the other Transactions, and (ii) recommended that the
holders of Company Common Stock approve and adopt this Agreement
and the Merger;
WHEREAS,
each Principal Shareholder is the record and beneficial owner of
the number of Outstanding Common Shares in each case set forth
opposite such Principal Shareholder’s name on
Schedule A hereto (together with all shares of Company
Common Stock acquired after the date hereof by such Principal
Shareholder, whether upon the exercise of any Options or otherwise
hereafter acquired by such Principal Shareholder, in each case as
such shares and Options may be adjusted from time to time for any
stock dividend, stock split, recapitalization, combination,
exchange, merger, consolidation, reorganization or other change or
transaction involving the Company, are referred to herein
collectively as the “ Principal Shareholder Shares
” of such Principal Shareholder); and
WHEREAS,
as a condition to the willingness of Parent and Acquisition Corp.
to enter into the Merger Agreement, Parent and Acquisition Corp.
have requested that the Principal Shareholders enter into this
Agreement.
NOW,
THEREFORE, to induce Parent and Acquisition Corp. to enter into,
and in consideration of them entering into, the Merger Agreement,
and in consideration of the foregoing
premises and the representations,
warranties, covenants and agreements contained herein, Parent,
Acquisition Corp. and each of the Principal Shareholders hereby
agree as follows:
1.
Representations and Warranties of Each Principal Shareholder
. Each Principal Shareholder, acting solely in its capacity as a
holder of Principal Shareholder Shares and not as a director of the
Company or in any other capacity, hereby, severally and not jointly
with any other Principal Shareholder, represents and warrants to
Parent and Acquisition Corp. as follows:
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(a)
Authority . Such Principal Shareholder has all requisite
power and authority to execute and deliver this Agreement, to
perform all of his obligations hereunder and otherwise to
consummate the transactions contemplated hereby. This Agreement has
been duly executed and delivered by such Principal Shareholder and,
assuming this Agreement constitutes a valid and binding obligation
of the Parent and Acquisition Corp., constitutes a valid and
binding obligation of such Principal Shareholder enforceable
against such Principal Shareholder in accordance with its terms.
Other than in connection with or in compliance with the provisions
of the Exchange Act or the HSR Act or the Healthcare Laws, neither
the execution, delivery or performance of this Agreement by such
Principal Shareholder nor the consummation by such Principal
Shareholder of the transactions contemplated hereby will (i)
require any filing with, or permit, authorization, consent or
approval of, any Governmental Authority, (ii) result in a material
violation or breach of, or constitute (with or without due notice
or lapse of time or both) a material default under, or give rise to
any right of termination, amendment, cancellation or acceleration
under, result in the creation of any material Lien upon a material
portion of the properties or assets of each Principal Shareholder,
or result in the creation of any Lien upon any Company Common
Stock, under, any of the terms, conditions or provisions of any
Contract to which such Principal Shareholder is a party or by which
such Principal Shareholder or any of such Principal
Shareholder’s properties or assets, including the Principal
Shareholder Shares owned by such Principal Shareholder, may be
bound or (iii) violate, in any material respect, any Order or any
Law applicable to such Principal Shareholder or any of such
Principal Shareholder’s properties or assets, including the
Principal Shareholder Shares owned by such Principal
Shareholder.
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(b)
Ownership of Principal Shareholder Shares . All Principal
Shareholder Shares acquired hereafter by such Principal Shareholder
shall at all times while this Agreement is in effect be held by
such Principal Shareholder, or by a nominee or custodian for the
benefit of such Principal Shareholder, and such Principal
Shareholder shall at all time while this Agreement is in effect
have good and marketable title to all such Principal Shareholder
Shares, free and clear of any Liens, proxies, voting trusts or
agreements, understandings or arrangements, except for any such
Liens or proxies arising hereunder. Such Principal Shareholder does
not own of record or beneficially any Outstanding Common Shares,
any options or other rights to purchase shares of Company Common
Stock or any rights exercisable for or convertible into shares of
Company Common Stock, other than the Outstanding Common Shares and
shares of Company Common Stock issuable upon the exercise of
Options, in each case set forth opposite such Principal
Shareholder’s name on Schedule A hereto.
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(c)
Merger Agreement . Such Principal Shareholder understands
and acknowledges that Parent and Acquisition Corp. are entering
into the Merger Agreement in reliance upon execution and delivery
of this Agreement by such Principal Shareholder.
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(d)
Adequacy of Information . Such Principal Shareholder is a
sophisticated investor with respect to the Principal Shareholder
Shares of such Principal Shareholder and has adequate information
concerning the business and financial condition of the Company to
make an informed decision regarding the transactions contemplated
hereby and by the Merger Agreement and has independently and
without reliance upon either Parent or Acquisition Corp. and based
on such information as the Principal Shareholder has deemed
appropriate made his own analysis and decision to enter into this
Agreement. Such Principal Shareholder has received and reviewed the
Merger Agreement and acknowledges that neither Parent nor
Acquisition Corp. has made or makes any representation or warranty,
whether express or implied, of any kind or character except as
expressly set forth herein or in the Merger Agreement. Such
Principal Shareholder acknowledges that the agreements contained
herein with respect to the Principal Shareholder Shares of such
Principal Shareholder are irrevocable (subject to termination in
accordance with Section 7 of this Agreement), and that such
Principal Shareholder has no recourse to Parent or Acquisition
Corp., except with respect to breaches by Parent or Acquisition
Corp. of their respective representations, warranties, covenants
and agreements expressly set forth in this Agreement.
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2.
Representations and Warranties of Parent and Acquisition
Corp. Each of Parent and Acquisition Corp. hereby represents
and warrants to the Principal Shareholders that each of Parent and
Acquisition Corp. has all requisite power and authority to execute
and deliver this Agreement, to perform all of its obligations
hereunder and otherwise to consummate the transactions contemplated
hereby. The execution, delivery and performance of this Agreement
and the consummation of the transactions contemplated hereby, have
been duly authorized by each of Parent and Acquisition Corp. This
Agreement has been duly executed and delivered by each of Parent
and Acquisition Corp. and, assuming this Agreement constitutes a
valid and binding obligation of each Principal Shareholder,
constitutes a valid and binding obligation of each of Parent and
Acquisition Corp. enforceable against it in accordance with its
terms. Other than in connection with or in compliance with the
provisions of the Exchange Act or the HSR Act or the Healthcare
Laws, neither the execution, delivery or performance of this
Agreement by either Parent or Acquisition Corp., nor the
consummation by either of them of the transactions contemplated
hereby will (i) require any filing with, or permit, authorization,
consent or approval of, any Governmental Authority, (ii) result in
a material violation or breach of, or constitute (with or without
due notice or lapse of time or both) a material default under, or
give rise to any right of termination, amendment, cancellation or
acceleration under, result in the creation of any material Lien
upon a material portion of the properties or assets of Parent or
Acquisition Corp., or (iii) violate, in any material respect, any
Order or any Law applicable to either the Parent or Acquisition
Corp. or any of their respective properties or assets.
3.
Covenants . Each Principal Shareholder, acting solely in his
capacity as a holder of Principal Shareholder Shares and not as a
director or officer of the Company or in any other capacity,
hereby, severally and not jointly with any other Principal
Shareholder, agrees as follows:
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(a)
such Principal Shareholder shall not, except as expressly
contemplated by the terms of this Agreement, the Contribution
Agreement or the Merger Agreement, (A) sell, transfer, pledge,
assign or otherwise dispose of (including, without limitation, by
merger or otherwise by operation of law), or enter into any
Contract, option or other arrangement (including, without
limitation, any profit sharing arrangement) or understanding with
respect to the sale, transfer, pledge, assignment or other
disposition of (including, without limitation, by merger or
otherwise by operation of law), all or any portion, or any interest
in any, of the Principal Shareholde
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