Unassociated Document


    

      JOINDER
        AND AMENDMENT TO AMENDED AND RESTATED VOTING AGREEMENT

      


      


      THIS
        JOINDER AND AMENDMENT AGREEMENT (“Joinder
        Agreement”)
        to the
        Amended and Restated Voting Agreement dated as of February 6, 2004 (the
        "Agreement")
        by and
        among Acura Pharmaceuticals, Inc. (f/k/a Halsey Drug Co., Inc.), a New York
        corporation (the "Company"),
        Care
        Capital Investments II, LP, Care Capital Offshore Investments II, LP, Essex
        Woodlands Health Ventures V, L.P., Galen Partners III, L.P. and the other
        signatories thereto, is made and entered into as of November 9, 2005 by and
        among the Company, Care Capital Investments II, LP, Care Capital Offshore
        Investments II, LP (collectively “Care Capital”), Essex Woodlands Health
        Ventures, L.P. (“Essex”), Galen Partners International III, L.P., Galen Partners
        III, L.P., Galen Employee Fund III, L.P. (collectively, “Galen”) and GCE
        Holdings LLC (the “Transferee”). Capitalized terms used herein but not otherwise
        defined shall have the meanings set forth in the Agreement.

      


      WHEREAS,
        Transferee is acquiring Securities from each of Care Capital, Essex and Galen;
        and 

      


      WHEREAS,
        Section
        6 of the Agreement requires each transferee to which Securities are transferred,
        assigned, conveyed or otherwise disposed to agree to be bound by the terms
        of
        the Agreement (unless such transfer is made pursuant to an effective
        registration statement under the Securities Act or through a broker pursuant
        to
        Rule 144); and 

      


      WHEREAS,
        the
        Parties desire to amend the Agreement to preserve the rights of Care Capital,
        Essex and Galen relating to the nomination and election of Company directors
        following the conveyance of Securities from each of Care Capital, Essex and
        Galen to Transferee.

      


      NOW,
        THEREFORE,
        the
        parties to this Joinder Agreement hereby agree as follows:

      


      1.  Amendments.
        

      


      A.  Section
        2
        of the Agreement is hereby deleted and the following inserted in its
        place:

      


      “2. Election
        of Director Nominees.
        Commencing upon the Company's next upcoming meeting of shareholders, each
        Party
        and GCE Holdings LLC (the "Designating
        Party")
        agree
        as follows:

       

      
        	(a)  	
                Each
                  Party holding Common Stock, Series A Preferred, Series B Preferred
                  and
                  Series C Preferred (collectively, the "Securities")
                  shall vote its Securities, and take or cause to be taken such other
                  actions, as may be required from time to time to (i) ensure that
                  the Board
                  of Directors consists of no more than seven directors, and (ii)
                  elect to
                  the Board of Directors of the Company (A) four (4) persons designated
                  by
                  the Designating Party, (B) one person who shall be the Chief Executive
                  Officer of the Company, and (C) two persons who shall be independent
                  directors (as defined in Rule 4200(a)(15) of the National Association
                  of
                  Securities' Dealers Listing Standards, as may be modified or
                  supplemented) nominated
                  and elected to the Board of Directors by the then current directors.
                  Without limiting the generality of the foregoing, at each annual
                  meeting
                  of the shareholders of the Company, and at each special meeting
                  of the
                  shareholders and debentureholders of the Company called for the
                  purpose of
                  electing directors of the Company, and at any time at which the
                  shareholders and debentureholders of the Company have the right
                  to elect
                  directors of the Company, in each such event, each Party shall
                  vote all
                  Securities owned by them (or shall consent in writing in lieu of
                  a meeting
                  of shareholders and debentureholders of the Company, as the case
                  may be),
                  or take such other actions as shall be necessary, to elect the
                  Designating
                  Party's designees as a director of the Company in accordance with
                  the
                  preceding provisions of this Section
                  2(a);

              


      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	(b)  	
                Each
                  Party shall take all actions necessary to remove forthwith the
                  director
                  designated by the Designating Party when such removal is requested
                  for any
                  reason, with or without cause, by the Designating Party. In the
                  case of
                  the death, resignation or removal as herein provided of a Designating
                  Party's designee, each Party shall vote all Securities held by
                  it to elect
                  another person designated by the Designating Party pursuant to
                  Section
                  2(a);

              


      

       

      
        	(c)  	
                Each
                  Party hereby agrees that it will not vote any of its Securities
                  in favor
                  of the removal of any director that shall have been designated
                  by the
                  Designating Party, unless the Designating Party shall have consented
                  to
                  such removal in writing.

              


      

       

      In
        the
        event that any Party shall fail to vote the Securities held by it in accordance
        with Section 2(a) and (b), such Party shall, upon such failure to so vote,
        be
        deemed immediately to have granted to the Designating Party, a proxy to vote
        its
        Securities solely for the election of the nominee of the Designating Party
        or
        the removal of director designated by the Designating Party. Such Party
        acknowledges that each such proxy granted hereby, including any successive
        proxy, if necessary, is being given to secure the performance of an obligation
        hereunder, is coupled with an interest, and shall be irrevocable until such
        obligation is performed;

       

      
        	(d)  	
                No
                  Party shall grant any proxy or enter into or agree to be bound
                  by any
                  voting trust with respect to the Securities held by such Party,
                  or enter
                  into any shareholder agreement or arrangement of any kind with
                  any person
                  with respect to the Securities held by such person that is, in
                  either
                  case, inconsistent with the terms of this Agreement (whether or
                  not such
                  agreement and arrangement was or is with other shareholders of
                  the Company
                  that are or are not parties to this
                  Agreement);

              


      

       

      
        
          
          

        

        
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        	(e)  	
                The
                  Company shall take, or cause to be taken, such actions as may be
                  required
                  from time to time to establish and maintain executive, audit and
                  compensation committees of the Board of Directors, as well as such
                  other
                  committees of the boards of directors of the Company as the Board
                  of
                  Directors shall determine, having such duties and responsibilities
                  as are
                  customary for such committees. The designees of the Designating
                  Party
                  shall be, if so requested by the Designating Party, in its sole
                  discretion, a member of each such committee; and
                  

              


      

       

      
        	(f)  	
                The
                  rights of the Designating Party shall terminate on the date the
                  Designating Party ceases to be a holder of the Minimum Threshold.
                  For
                  purposes hereof, "Minimum Threshold" shall mean at least 50% of
                  the shares
                  of Series A Preferred initially transferred and conveyed to the
                  Designating Party by Care Capital, Essex and Galen (or at least
                  50% of the
                  shares of Common Stock issued upon conversion
                  thereof).”

              


      

       

      B.  Section
        7
        of the Agreement is hereby deleted and the following inserted in its
        place:

      


      “7. Term.
        Except
        as provided in Sections 2(f) and 6 hereof, this Agreement and the Parties'
        obligations hereunder shall continue in effect for so long as the Designating
        Party owns the Minimum Threshold.”

      


      C.  Section
        8
        of the Agreement is hereby deleted and the following inserted in its
        place:

      


      “8. Amendment.
        Any
        term of this Agreement or the powers granted hereunder may be amended and
        the
        observance of any such term or power may be waived (either generally or in
        a
        particular instance and either retroactively or prospectively) only with
        the
        written consent of a majority of the Securities then subject to this Agreement,
        which majority must include the Designating Party so long as it owns the
        Minimum
        Threshold.”

      


      D.  Section
        9.1(a) of the Agreement is hereby deleted and the following inserted in its
        place: 

      


      “9.1 Binding
        Effect.
        (a)
        This Agreement and the powers granted hereunder shall be binding upon, and
        shall
        inure to the benefit of, the Designating Party and the Parties.”

      


      E.  Section
        12 of the Agreement is hereby deleted and the following inserted in its place:
        

      


      “12. Board
        Observer.
        So long
        as the Designating Party has the right to designate a director pursuant to
        Section 2(a) hereof, the Company will permit one observer selected by the
        Designating Party to attend all meetings of the Board of Directors of the
        Company, and shall provide such observer with such notice and other information
        with respect to such meetings as are delivered to the directors of the Company;
        provided,
        that
        such observer shall not be permitted to attend any meeting or portion thereof
        or
        have access to such other information if, in the judgment of the Company
        under
        advice of counsel, such observer’s presence or receipt of such information would
        adversely affect attorney-client privilege with respect to such meeting or
        information.”

      


      
        
          
          

        

        
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      2.  Agreement
        to be Bound.
        Upon
        execution of this Joinder Agreement, Transferee shall become a party to the
        Agreement and shall, together with the Company, and other parties thereto
        be
        fully bound by, subject to, and entitled to the rights and benefits of, all
        of
        the covenants, terms and conditions of the Agreement.

      


      3.  Successors
        and Assigns.
        Except
        as otherwise provided herein, this Joinder Agreement shall inure to the benefit
        of, and be binding upon and enforceable against, the parties hereto and their
        respective successors, assigns, heirs, executors and
        administrators.

      


      4.  Counterparts.
        This
        Joinder Agreement may be executed in separate counterparts, including by
        facsimile, each of which shall be an original and all of which taken together
        shall constitute one and the same agreement.

      


      5.  Notices.
        For
        purposes of Section
        10
        of the
        Agreement, all notices, demands or other communications to the Transferee
        shall
        be directed to the address set forth on the signature page hereto.

      


      6.  Governing
        Law.
        This
        Joinder Agreement and rights of the parties hereunder shall be governed in
        all
        respects by the laws of the State of New York wherein the terms of this Joinder
        Agreement were negotiated, excluding to the greatest extent permitted by
        law any
        rule of law that would cause the application of the laws of any jurisdiction
        other than the State of New York.

      


      [SIGNATURE
        PAGE TO FOLLOW]


      
        
          
          

        

        
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      IN
        WITNESS WHEREOF,
        the
        parties hereto have executed this Joinder Agreement as of the date first
        above
        written.

      


      
        
          	 	 	 
	 	ACURA
                  PHARMACEUTICALS, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Andrew
                  D. Reddick
	 	
                  
                    

                  

                  Name:
                    Andrew D. Reddick

                
	 	Title:
                  President and Chief Executive Officer
	 	 


        




      
        	 	 	 
	 	GCE
                HOLDINGS LLC
	 
 	 
 	 
 
	 	By:  	/s/ Bruce
                F. Wesson
	 	
                
Name:
                Bruce F. Wesson
	 	Title:  
	 	
                Address:   
                  c/o Galen Partners III, L.P

              
	 	
                610
                  Fifth Avenue, 5th Floor

              
	 	
                New
                  York, New York 10019

              
	 	 


      

      
        	 	 	 
	 	CARE
                CAPITAL INVESTMENTS II, LP
	 
 	 
 	 
 
	 	By:  	/s/ David
                R. Ramsay
	 	
                
                  

                

                Name:
                  David R. Ramsay

              
	 	Title:
                Authorized Signatory


      

      
        	 	 	 
	 	 	 
	 	CARE
                CAPITAL OFFSHORE INVESTMENTS II, LP
	 
 	 
 	 
 
	 	By:  	/s/ David
                R. Ramsay
	 	
                
                  

                

                Name:
                  David R. Ramsay 

              
	 	Title:
                Authorized Signatory


      

       

      
        
          
          

        

        
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	 	ESSEX
                WOODLANDS HEALTH VENTURES V, L.P.
	 
 	 
 	 
 
	 	By:  	/s/ Immanuel
                Thangaraj
	 	
                
Name:
                Immanuel Thangaraj
	 	Title:
                Managing Director 


      

      
        	 	 	 
	 	 	 
	 	GALEN
                PARTNERS III, L.P.
	 
 	 
 	 
 
	 	By:  	/s/ Srini
                Conjeevaram
	 	
                
                  
Name:
                  Srini Conjeevaram 

              
	 	Title:
                Member


      

      
        	 	 	 
	 	 	 
	 	GALEN
                EMPLOYEE FUND III, L.P.
	 
 	 
 	 
 
	 	By:  	/s/ Bruce
                F. Wesson
	 	
                
                  
Name:
                  Bruce F. Wesson 

              
	 	Title:
                President


      

      
        	 	 	 
	 	 	 
	 	GALEN
                PARTNERS INTERNATIONAL III, L.P
	 
 	 
 	 
 
	 	By:  	/s/ Srini
                Conjeevaram
	 	
                
                  
Name:
                  Srini Conjeevaram 

              
	 	Title:
                Member


      

    

     

     

    
      
        
        

      

      
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