VOTING AGREEMENT
Exhibit
10.2
VOTING
AGREEMENT, dated as of May 26, 2006 (this "Agreement"),
by
and among Interpharm Holdings, Inc., a Delaware corporation (the "Company"),
and
the stockholders listed on the signature pages hereto under the heading
"Stockholders"
(each a
"Stockholder"
and
collectively, the "Stockholders").
WHEREAS,
as of the date hereof, the Stockholders own or have the power and authority
to
vote with respect to collectively 50,074,605 shares of Common Stock, which
represent in the aggregate approximately 78% of the total issued and outstanding
capital stock of the Company; and
WHEREAS,
as a condition to the willingness of the Investors to enter into the Securities
Purchase Agreement and to consummate the transactions contemplated thereby
(collectively, the "Transaction"),
the
Investors have required that each Stockholder agree, and in order to induce
the
Investors to enter into the Securities Purchase Agreement each Stockholder
has
agreed, to enter into this Agreement with respect to all the Common Stock now
owned and which may hereafter be acquired by the Stockholder and any other
securities, if any, which such Stockholder is currently entitled to vote, or
after the date hererof, becomes entitled to vote, at any meeting of Stockholders
of the Company (the "Other
Securities").
NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants and
agreements contained herein, and intending to be legally bound hereby, the
parties hereto hereby agree as follows:
ARTICLE
I
VOTING
AGREEMENT OF THE STOCKHOLDERS
SECTION
1.01. Voting
Agreement.
Subject
to the last sentence of this Section 1.01, each Stockholder hereby agrees
that at any meeting of the Stockholders of the Company, however called, and
in
any action by written consent of the Company's Stockholders, each of the
Stockholders shall vote the Common Stock and the Other Securities: (a) in favor
of the Stockholder Approval, including the Capital Increase (each as defined
in
the Securities Purchase Agreement), as described in Section 4(p) of the
Securities Purchase Agreement; (b) in favor of an amendment to the Certificate
of Incorporation of the Company allowing for the conversion of all shares of
the
Company's Series A Preferred Stock, $0.01 par value per share (the "Series
A Preferred Stock")
and
the Company's Series B Preferred Stock, $0.01 par value per share (the
"Series
B Preferred Stock")
and
(c) against any proposal or any other corporate action or agreement that would
result in a breach of any covenant, representation or warranty or any other
obligation or agreement of the Company under the Securities Purchase Agreement
or which could result in any of the conditions to the Company's obligations
under the Securities Purchase Agreement not being fulfilled. Each Stockholder
acknowledges receipt and review of a copy of the Securities Purchase Agreement
and the other Transaction Documents (as defined in the Securities Purchase
Agreement). The obligations of the Stockholders under this Section 1.01 shall
terminate immediately following the occurrence of the Stockholder Approval.
ARTICLE
II
REPRESENTATIONS
AND WARRANTIES OF THE STOCKHOLDERS
Each
Stockholder hereby represents and warrants, severally but not jointly, to each
of the Investors as follows:
SECTION
2.01. Authority
Relative to This Agreement.
Each
Stockholder has all necessary power and authority to execute and deliver this
Agreement, to perform his or its obligations hereunder and to consummate the
transactions contemplated hereby. Each Stockholder has taken whatever steps
necessary, including without limitation, moving the Common Stock and Other
Securities from a margin account to a cash account and/or delivering any voting
instructions or legal proxy to any necessary broker or agent, to ensure that
such Stockholder has the necessary power and authority to vote all of the Common
Stock or Other Securities held by such Stockholder or has properly empowered
such broker or agent to vote in accordance herewith. This Agreement has been
duly executed and delivered by such Stockholder and constitutes a legal, valid
and binding obligation of such Stockholder, enforceable against such Stockholder
in accordance with its terms, except (a) as such enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance,
moratorium or similar laws now or hereafter in effect relating to, or affecting
generally the enforcement of creditors' and other obligees' rights, (b) where
the remedy of specific performance or other forms of equitable relief may be
subject to certain equitable defenses and principles and to the discretion
of
the court before which the proceeding may be brought, and (c) where rights
to
indemnity and contribution thereunder may be limited by applicable law and
public policy.
SECTION
2.02. No
Conflict.
(a)
The
execution and delivery of this Agreement by such Stockholder does not, and
the
performance of this Agreement by such Stockholder shall not, (i) conflict with
or violate any federal, state or local law, statute, ordinance, rule,
regulation, order, judgment or decree applicable to any Stockholder or by which
the Common Stock or the Other Securities owned by such Stockholder are bound
or
affected or (ii) result in any breach of or constitute a default (or an event
that with notice or lapse of time or both would become a default) under, or
give
to others any rights of termination, amendment, acceleration or cancellation
of,
or result in the creation of a lien or encumbrance on any of the Common Stock
or
the Other Securities owned by such Stockholder pursuant to, any note, bond,
mortgage, indenture, contract, agreement, lease, license, permit, franchise
or
other instrument or obligation to which such Stockholder is a party or by which
such Stockholder or the Common Stock or Other Securities owned by such
Stockholder are bound.
2
(b) The
execution and delivery of this Agreement by such Stockholder does not, and
the
performance of this Agreement by such Stockholder shall not, require any
consent, approval, authorization or permit of, or filing with or notification
to, any governmental entity by such Stockholder.
SECTION
2.03. Title
to the Stock.
As of
the date hereof, each Stockholder is the owner of the number of shares of Common
Stock and Other Securities set forth opposite its name on Appendix
A
attached
hereto, entitled to vote, without restriction, on all matters brought before
holders of capital stock of the Company, which Common Stock and Other Securities
represent on the date hereof the percentage of the outstanding stock and voting
power of the Company set forth on such Appendix. Such Common Stock and Other
Securities are all the securities of the Company owned, either of record or
beneficially, by such Stockholder. Except as permitted pursuant to the
Certificate of Designations, such Common Stock and Other Securities are owned
free and clear of all security interests, liens, claims, pledges, options,
rights of first refusal, agreements, limitations on such Stockholder's voting
rights, charges and other encumbrances of any nature whatsoever. No Stockholder
has appointed or granted any proxy, which appointment or grant is still
effective, with respect to the Common Stock or Other Securities owned by such
Stockholder.
ARTICLE
III
COVENANTS
SECTION
3.01. No
Disposition or Encumbrance of Stock.
(a)
Each
Stockholder hereby covenants and agrees that, until Stockholder Approval, except
as contemplated by this Agreement, such Stockholder shall not offer or agree
to
sell, transfer, tender, assign, hypothecate or otherwise dispose of, grant
a
proxy or power of attorney with respect to, or create or permit to exist any
security interest, lien, claim, pledge, option, right of first refusal,
agreement, limitation on such Stockholder's voting rights, charge or other
encumbrance of any nature whatsoever ("Encumbrance")
with
respect to the Common Stock or Other Securities, directly or indirectly,
initiate, solicit or encourage any person to take actions which could reasonably
be expected to lead to the occurrence of any of the foregoing; provided,
however,
that
any such Stockholder may assign, sell or transfer any Common Stock or Other
Securities provided that any such recipient of the Common Stock or Other
Securities has delivered to the Company and each Investor a written agreement
in
a form reasonably satisfactory to the Investors that the recipient shall be
bound by, and the Common Stock and/or Other Securities so transferred, assigned
or sold shall remain subject to this Agreement.
SECTION
3.02. Company
Cooperation.
The
Company hereby covenants and agrees that it will not, and each Stockholder
irrevocably and unconditionally acknowledges and agrees that the Company will
not (and waives any rights against the Company in relation thereto), recognize
any Encumbrance or agreement on any of the Common Stock or Other Securities
subject to this Agreement (except those contemplated by Section 2.03) unless
the
provisions of Section 3.01 have been complied with. The Company agrees to use
its reasonable best efforts to ensure that at any time in which any Stockholder
Approval is required pursuant to Section 4(p) of the Securities Purchase
Agreement, it will cause holders of Common Stock or Other Securities
representing the percentage of outstanding capital stock required to vote in
favor of the Transaction in order for the Company to comply with its obligations
under Section 4(p) of the Securities Purchase Agreement to become party to
and
bound by the terms and conditions of this Agreement and the Common Stock and
Other Securities held by such holders to be subject to the terms and conditions
of this Agreement.
3
ARTICLE
IV
MISCELLANEOUS
SECTION
4.01. Further
Assurances.
Each
Stockholder will execute and deliver such further documents and instruments
and
take all further action as may be reasonably necessary in order to consummate
the transactions contemplated hereby.
SECTION
4.02. Specific
Performance.
The
parties hereto agree that irreparable damage would occur in the event any
provision of this Agreement was not performed in accordance with the terms
hereof and that any Investor (without being joined by any other Investor) shall
be entitled to specific performance of the terms hereof, in addition to any
other remedy at law or in equity. Any Investor shall be entitled to its
reasonable attorneys' fees in any action brought to enforce this Agreement
in
which it is the prevailing party.
SECTION
4.03. Entire
Agreement.
This
Agreement constitutes the entire agreement among the Company and the
Stockholders (other than the Securities Purchase Agreement and the other
Transaction Documents) with respect to the subject matter hereof and supersedes
all prior agreements and understandings, both written and oral, among the
Company and the Stockholders with respect to the subject matter
hereof.
SECTION
4.04. Amendment.
This
Agreement may not be amended except by an instrument in writing signed by the
parties hereto.
SECTION
4.05. Severability.
If any
term or other provision of this Agreement is invalid, illegal or incapable
of
being enforced by any rule of law, or public policy, all other conditions and
provisions of this Agreement shall nevertheless remain in full force and effect
so long as the economic or legal substance of this Agreement is not affected
in
any manner materially adverse to any party. Upon such determination that any
term or other provision is invalid, illegal or incapable of being enforced,
the
parties hereto shall negotiate in good faith to modify this Agreement so as
to
effect the original intent of the parties as closely as possible in a mutually
acceptable manner in order that the terms of this Agreement remain as originally
contemplated to the fullest extent possible.
SECTION
4.06. Governing
Law.
All
questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of New
York, without giving effect to any choice of law or conflict of law provision
or
rule (whether of the State of New York or any other jurisdictions) that would
cause the application of the laws of any jurisdictions other than the State
of
New York. The parties hereby agree that all actions or proceedings arising
directly or indirectly from or in connection with this Agreement shall be
litigated only in the Supreme Court of the State of New York or the United
States District Court for the Southern District of New York located in New
York
County, New York. The parties consent to the jurisdiction and venue of the
foregoing courts and consent that any process or notice of motion or other
application to any of said courts or a judge thereof may be served inside or
outside the State of New York or the Southern District of New York by registered
mail, return receipt requested, directed to the party being served at its
address set forth on the signature ages to this Agreement (and service so made
shall be deemed complete three (3) days after the same has been posted as
aforesaid) or by personal service or in such other manner as may be permissible
under the rules of said courts. Each of the Company and each Stockholder
irrevocably waives, to the fullest extent permitted by law, any objection which
it may now or hereafter have to the laying of the venue of any such suit,
action, or proceeding brought in such a court and any claim that suit, action,
or proceeding has been brought in an inconvenient forum. EACH
PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.
4
SECTION
4.07. Third-Party
Beneficiaries.
The
Investors shall be intended third party beneficiaries of this Agreement to
the
same extent as if they were parties hereto, and shall be entitled to enforce
the
provisions hereof.
SECTION
4.08. Termination.
This
Agreement shall terminate immediately following the occurrence of the
Stockholder Approval or upon the mutual consent of each Stockholder and the
Investors.
5
IN
WITNESS WHEREOF, each Stockholder and the Company has duly executed this
Agreement.
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THE
COMPANY:
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INTERPHARM
HOLDINGS, INC.
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By:
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/s/
Xxxxxx Xxxxxxx
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Name:
Xxxxxx Xxxxxxx
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Title:
Chief Financial Officer
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Dated:
May 26, 2006
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Address:
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00
Xxxxx Xxxxxx
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Xxxxxxxxx,
Xxx Xxxx 00000
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STOCKHOLDER:
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RAJS
HOLDINGS I, LLC
By:
/s/ Xxxxx Xxxxxxx
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Xxxxx
Xxxxxxx, Manager
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Dated:
May 26, 2006
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Address:
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00
Xxxxx Xxxxxx
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Xxxxxxxxx,
Xxx Xxxx 00000
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STOCKHOLDER:
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XXXXX
HOLDINGS I, LLC
By:
/s/ Xxxxx Xxxxxxx
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Xxxxx
Xxxxxxx, Manager
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Dated:
May 26, 2006
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Address:
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00
Xxxxx Xxxxxx
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Xxxxxxxxx,
Xxx Xxxx 00000
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STOCKHOLDER:
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P&K
HOLDINGS, LLC
By:
/s/ Xxxxx Xxxxxxx
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Xxxxx
Xxxxxxx, Manager
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Dated:
May 26, 2006
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Address:
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00
Xxxxx Xxxxxx
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Xxxxxxxxx,
Xxx Xxxx 00000
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STOCKHOLDER:
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RAMETRA
HOLDINGS I, LLC
By:
/s/ Xxxxx Xxxxxxx
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Xxxxx
Xxxxxxx, Manager
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Dated:
May 26, 2006
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Address:
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00
Xxxxx Xxxxxx
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Xxxxxxxxx,
Xxx Xxxx 00000
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APPENDIX
A
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Stockholder
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Common
Stock
Owned
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Other
Securities Owned
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Percentage
of Stock Outstanding
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Voting
Percentage
of
Stock
Outstanding
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Rajs
Holdings I, LLC
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17,526,100
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0
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27.4%
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27.4%
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Xxxxx
Holdings I, LLC
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12,518,645
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0
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19.6%
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19.6%
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P
& K Holdings, LLC
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10,014,930
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0
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15.7%
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15.7%
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Rametra
Holdings I, LLC
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10,014,930
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0
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15.7%
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15.7%
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