Dated as of October 24,
2005
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Page
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1. Restrictions on Transfers by the Investor
Stockholder
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1
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2. Transfer of Class B Common
Stock
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2
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2.1 Transfer of Class B Common Stock by
Investor Stockholder
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2
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2.2 Forced Transfer of Class B Common
Stock
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2
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2.3 Class B Common Stock Purchase
Price
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3
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3
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4. Stock Certificate Legend
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4
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5. Covenants; Representations and
Warranties
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5
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5.1 No Other Arrangements or
Agreements
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5
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5.2 Additional Representations and
Warranties
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5
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6
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6
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8. Amendment and Modification
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6
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7
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7
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7
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7
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9.4 Agreements to Be Bound
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7
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10. Recapitalizations, Exchanges,
etc.
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8
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11. No Third Party Beneficiaries
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8
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8
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13. Governing Law; Jurisdiction
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8
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14. Invalidity of Provision
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9
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9
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9
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10
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10
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Page
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10
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11
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11
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Schedule A –
Capitalization
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ii
VOTING
AGREEMENT, dated as of October 24, 2005 (this “
Agreement ”), by and among Doane Pet Care Enterprises,
Inc., a Delaware corporation (“ DPCE ”), Doane
Pet Care Company, a Delaware Corporation (the “
Company ”) and Wilchester Investments Limited, a
Jersey limited company (the “ Investor Stockholder
” and together with DPCE, the “ Stockholders
”). Capitalized terms used herein without definition are
defined in Section 21.
WHEREAS,
the Company entered into a certain Agreement and Plan of Merger,
dated as of August 28, 2005, by and among DPC Newco Inc. (“
Newco ”), DPCE and the Company (as the same may be
amended modified, supplemented or restated from time to time, the
“ Merger Agreement ”), providing for, among
other things, the merger of Newco with and into DPCE, with DPCE as
the surviving corporation (the “ Merger
”);
WHEREAS,
in connection with the Merger, the Company filed an Amended and
Restated Certificate of Incorporation of the Company with the
Secretary of State of the State of Delaware authorizing shares of
class A common stock of the Company, par value $0.01 per share (the
“ Class A Common Stock ”), shares of class
B common stock of the Company, par value $0.01 per share (the
“ Class B Common Stock ”) and shares of
preferred stock, par value $0.01 per share (the “
Preferred Stock ”);
WHEREAS,
immediately after the Effective Time (as defined in the Merger
Agreement), the issued and outstanding capital stock of the Company
will consist of ( a ) 1,000 shares of Class A Common
Stock, ( b ) 71.32 shares of Class B Common Stock and
(c) 1,200,000 shares of Preferred Stock;
WHEREAS,
the initial amount of Common Stock held by each of the Stockholders
as of the date hereof is set forth on Schedule A opposite such
Stockholder’s name; and
WHEREAS,
concurrently herewith, DPCE, the Investor Stockholder and certain
other parties are entering into the Stockholders
Agreement.
NOW,
THEREFORE, in consideration of the mutual agreements contained
herein, and further, in the case of the Investor Stockholder, in
consideration of the mutual agreements contained in the
Stockholders Agreement, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as
follows:
1.
Restrictions on Transfers by the Investor Stockholder . No
shares of Common Stock now or hereafter owned by the Investor
Stockholder, nor any interest therein nor any rights relating
thereto, may be Transferred, except ( a ) pursuant to
Section 2.1 (“Transfer of Class B Common Stock by
Investor Stockholder”), ( b ) pursuant to
Section 2.2 (“Forced Transfer of
Class B Common Stock”), or ( c ) with the prior
written consent of DPCE, such consent to be in DPCE’s sole
discretion.
2.
Transfer of Class B Common Stock .
2.1
Transfer of Class B Common Stock by Investor
Stockholder . The Investor Stockholder shall have the right but
not the obligation to transfer to DPCE, at any time, all (but not
less than all) of such Investor Stockholder’s shares of
Class B Common Stock, and DPCE shall have the obligation, upon
the Investor Stockholder’s exercise of such right, to acquire
all of such Investor Stockholder’s shares of Class B
Common Stock at a price per share of Class B Common Stock
equal to the Class B Common Stock Purchase Price (as defined
in Section 2.3). If the Investor Stockholder desires to
exercise its right pursuant to this Section 2.1, it shall
provide DPCE 90 days’ prior written notice thereof;
provided that such notice shall ( a ) be irrevocable
and unconditional and ( b ) be given only if the Investor
Stockholder contemporaneously provides a written notice exercising
its right pursuant to Section 4.1 of the Stockholders
Agreement. Payment for any shares of Class B Common Stock
transferred by the Investor Stockholder pursuant to this
Section 2.1 shall be made no later than on the date that is
90 days (or the first business day thereafter if such
90 th
day is not a business day) following
the date of receipt by the Company of the Investor
Stockholder’s notice pursuant to this Section 2.1. DPCE shall
receive customary representations and warranties from the Investor
Stockholder regarding the shares of Class B Common Stock that
are the subject of this Section 2.1, including, but not
limited to, a representation and warranty that the Investor
Stockholder has good and marketable title to such shares to be
transferred, free and clear of all liens, claims and other
encumbrances, other than those created pursuant to the Guarantee
and Collateral Agreement, dated as of October 24, 2005, made
by DPCE, the Company and the other parties thereto in favor of
Lehman Commercial Paper Inc.(the “ Guarantee and
Collateral Agreement ”).
2.2
Forced Transfer of Class B Common Stock . DPCE shall
have the right but not the obligation to acquire from the Investor
Stockholder, at any time, all (but not less than all) of such
Investor Stockholder’s shares of Class B Common Stock,
and the Investor Stockholder shall have the obligation, upon
DPCE’s exercise of such right, to transfer to DPCE, all of
such Investor Stockholder’s shares of Class B Common
Stock at a price per share of Class B Common Stock equal to
the Class B Common Stock Purchase Price. If DPCE desires to
acquire shares of Class B Common Stock from the Investor
Stockholder pursuant to this Section 2.2, it shall notify the
Investor Stockholder thereof in writing; provided that such
notice may be revocable or conditional or both. Payment for any
shares of Class B Common Stock acquired by DPCE pursuant to
this Section 2.2 shall be made on the date that is specified in
DPCE’s notice with respect to such shares pursuant to this
Section 2.2. DPCE shall receive customary representations and
warranties from the Investor Stockholder regarding the shares of
Class B Common Stock that are the subject of this
Section 2.2, including, but not limited to, a
2
representation
and warranty that such Investor Stockholder has good and marketable
title to such shares to be transferred, free and clear of all
liens, claims and other encumbrances, other than those created
pursuant to the Guarantee and Collateral Agreement.
2.3
Class B Common Stock Purchase Price . Unless otherwise
agreed to by the Investor Stockholder and DPCE, the “
Class B Common Stock Purchase Price ” of any
share of Class B Common Stock purchased pursuant to
Section 2.1 or Section 2.2, as the case may be, shall be
$0.
3.
Election of Directors .
(a) Each
holder of Class B Common Stock shall vote all of its shares of
Class B Common Stock and shall take all other necessary or
desirable actions within such Stockholder’s control (whether
in such Stockholder’s capacity as a stockholder, director,
member of a Board committee or officer of the Company or otherwise,
and including, without limitation, attendance at meetings in person
or by proxy for purposes of obtaining a quorum, execution of
written consents in lieu of meetings and approval of amendments
and/or restatements of the Company’s certificate of
incorporation or by-laws), and the Company shall take all necessary
and desirable actions within its control (including, without
limitation, calling special Board or stockholder meetings and
approval of amendments and/or restatements of the Company’s
certificate of incorporation or by-laws), so that:
(i) the authorized
number of directors on the Board shall be as established by DPCE;
provided that such number shall initially be
three;
(ii) the Chief
Executive Officer of the Company shall be elected to the
Board;
(iii) the
remainder of the directors, which will be designated by DPCE, shall
be elected to the Board;
(iv) the removal
from the Board (with or without cause) of any representative
designated pursuant hereto by DPCE shall be at DPCE’s written
request, but only upon such written request and under no other
circumstances.
(b) In
order to secure the obligation of each holder of Class B
Common Stock to vote its shares of Class B Common Stock in
accordance with the provisions of Section 3(a) above, the Investor
Stockholder hereby irrevocably appoints DPCE as its true and lawful
proxy and attorney-in-fact, with full power of substitution, to
vote all of such holder’s shares of Class B Common Stock
for the election and removal of directors and all such other
matters as expressly provided for in Section 3(a) above. DPCE may
exercise the irrevocable proxy granted to it hereunder at any time
any such
3
holder fails to
comply with the provisions of this Section 3(a). The proxies
and powers granted by each such holder pursuant to this Section
3(b) are coupled with an interest and are given to secure the
performance of the obligations under this Agreement. Such proxies
and powers will be irrevocable until the termination of this
Agreement.
(c) Approval
of at least one member of the Board, other than the Chief Executive
Officer or any Independent Director, shall be required in
connection with any action of the Board.
4.
Stock Certificate Legend . A copy of this Agreement shall be
filed with the Secretary of the Company and kept with the records
of the Company. Each certificate representing shares of Common
Stock owned by the Stockholders shall bear upon its face the
following legends, as appropriate:
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(a)
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“THE SHARES EVIDENCED BY THIS
CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), AND MAY NOT BE OFFERED, SOLD, ASSIGNED,
PLEDGED, HYPOTHECATED, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS
AND UNTIL REGISTERED UNDER THE ACT AND ANY APPLICABLE STATE
SECURITIES LAWS OR UNLESS, IN THE OPINION OF COUNSEL TO THE
STOCKHOLDER, WHICH COUNSEL MUST BE, AND THE FORM AND SUBSTANCE OF
WHICH OPINION ARE, SATISFACTORY TO DOANE PET CARE COMPANY (THE
“ISSUER”), SUCH OFFER, SALE, ASSIGNMENT, PLEDGE,
HYPOTHECATION, TRANSFER OR OTHER DISPOSITION IS EXEMPT FROM
REGISTRATION OR IS OTHERWISE IN COMPLIANCE WITH THE ACT, SUCH LAWS
AND THE VOTING AGREEMENT OF THE ISSUER, DATED AS OF OCTOBER 24,
2005 (THE “VOTING AGREEMENT”).”
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(b)
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“THE SHARES EVIDENCED BY THIS
CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER AND OTHER
CONDITIONS AS SPECIFIED IN THE VOTING AGREEMENT, COPIES OF WHICH
ARE ON FILE AT THE OFFICE OF THE ISSUER AND WILL BE FURNISHED
WITHOUT CHARGE TO THE HOLDER OF SUCH SHARES UPON WRITTEN
REQUEST.”
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(c)
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“THE ISSUER WILL FURNISH
WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO REQUESTS THE
POWERS,
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4
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DESIGNATIONS,
PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL OR OTHER SPECIAL
RIGHTS OF EACH CLASS OR SERIES OF SHARES AUTHORIZED TO BE ISSUED
AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH
PREFERENCES AND/OR RIGHTS.”
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In addition,
certificates representing shares of Class B Common Stock
issued to any Person other than DPCE shall bear upo
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