Document:

exv10w9

 

Exhibit 10.9

EXECUTION COPY

 

STOCKHOLDERS AGREEMENT

DOANE PET CARE ENTERPRISES, INC.

Dated as of October 24, 2005

 

 

 

Table of Contents

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	1	 	Restrictions on Transfers of Common Stock	 	 	2	 
	 
	 	1.1	 	Restriction on Transfers by the Investor Stockholder	 	 	2	 
	 
	 	1.2	 	Restrictions on Transfers by the Management Stockholders	 	 	2	 
	 
	 	1.3	 	Other Restrictions	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	2	 	Sale by Management Stockholders to the Company	 	 	3	 
	 
	 	2.1	 	Right to Sell	 	 	3	 
	 
	 	2.2	 	Notice	 	 	3	 
	 
	 	2.3	 	Payment	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	3	 	Right of the Company and OTPP to Purchase from Management Stockholders	 	 	3	 
	 
	 	3.1	 	Right to Purchase	 	 	3	 
	 
	 	3.2	 	Notice	 	 	4	 
	 
	 	3.3	 	Payment	 	 	4	 
	 
	 	 	 	 	 	 	 	 
	4	 	Sale of Class B Common Stock	 	 	5	 
	 
	 	4.1	 	Sale of Class B Common Stock by Investor Stockholder	 	 	5	 
	 
	 	4.2	 	Forced Sale of Class B Common Stock	 	 	5	 
	 
	 	4.3	 	Limitations	 	 	6	 
	 
	 	4.4	 	Failure to Make Payment	 	 	6	 
	 
	 	 	 	 	 	 	 	 
	5	 	Purchase Price	 	 	6	 
	 
	 	5.1	 	Fair Market Value	 	 	6	 
	 
	 	5.2	 	Carrying Value	 	 	6	 
	 
	 	5.3	 	Class B Common Stock Purchase Price	 	 	6	 
	 
	 	 	 	 	 	 	 	 
	6	 	Prohibited Purchases	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	7	 	Tag-Along and Drag-Along Rights	 	 	9	 
	 
	 	7.1	 	Tag-Along Rights	 	 	9	 
	 
	 	7.2	 	Drag-Along Rights	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	8	 	Election of Directors	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	9	 	Stock Certificate Legend	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	10	 	Covenants; Representations and Warranties	 	 	15	 
	 
	 	10.1	 	New Management Stockholders	 	 	15	 
	 
	 	10.2	 	No Other Arrangements or Agreements	 	 	15	 
	 
	 	10.3	 	Additional Representations and Warranties	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	11	 	Additional Provisions for the Benefit of the Investor Stockholder	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	
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Table of Contents

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	 	11.1	 	Right to Indemnification	 	 	17	 
	 
	 	11.2	 	Certain Taxes	 	 	19	 
	 
	 	11.3	 	Additional Dividends	 	 	19	 
	 
	 	 	 	 	 	 	 	 
	12	 	Taxes	 	 	19	 
	 
	 	 	 	 	 	 	 	 
	13	 	Amendment and Modification	 	 	19	 
	 
	 	 	 	 	 	 	 	 
	14	 	Parties	 	 	20	 
	 
	 	14.1	 	Assignment by the Company	 	 	20	 
	 
	 	14.2	 	Assignment Generally	 	 	20	 
	 
	 	14.3	 	Termination	 	 	20	 
	 
	 	14.4	 	Agreements to Be Bound	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	15	 	Recapitalizations,
Exchanges, etc.	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	16	 	No Third Party Beneficiaries	 	 	22	 
	 
	 	 	 	 	 	 	 	 
	17	 	Preparation for an IPO	 	 	22	 
	 
	 	 	 	 	 	 	 	 
	18	 	Further Assurances	 	 	22	 
	 
	 	 	 	 	 	 	 	 
	19	 	Governing Law; Jurisdiction	 	 	22	 
	 
	 	 	 	 	 	 	 	 
	20	 	Invalidity of Provision	 	 	23	 
	 
	 	 	 	 	 	 	 	 
	21	 	Waiver	 	 	23	 
	 
	 	 	 	 	 	 	 	 
	22	 	Notices	 	 	23	 
	 
	 	 	 	 	 	 	 	 
	23	 	Headings	 	 	25	 
	 
	 	 	 	 	 	 	 	 
	24	 	Counterparts	 	 	25	 
	 
	 	 	 	 	 	 	 	 
	25	 	Injunctive Relief	 	 	25	 
	 
	 	 	 	 	 	 	 	 
	26	 	Trial by Jury	 	 	25	 
	 
	 	 	 	 	 	 	 	 
	27	 	Defined Terms	 	 	25	 

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Table of Contents

(continued)

	 	 	 	 	 
	Exhibit A

	 	–
	 	Spousal Waiver
	Schedule A

	 	–
	 	Capitalization

iii

 

 

STOCKHOLDERS AGREEMENT

          STOCKHOLDERS AGREEMENT, dated as of October 24, 2005 (this “Agreement”), by and among
Doane Pet Care Enterprises, Inc., a Delaware corporation (the “Company”), Ontario Teachers’
Pension Plan Board, a corporation without share capital organized under the laws of Ontario, Canada
(“OTPP”), Wilchester Investments Limited, a Jersey limited company (the “Investor
Stockholder”), and Douglas J. Cahill, and any other employee of the Company or its subsidiaries
who may become a party to this Agreement pursuant to Section 10.1 hereof (collectively, the
“Management Stockholders” and together with the Investor Stockholder, the “Non-OTPP
Stockholders”). OTPP and the Non-OTPP Stockholders are hereinafter referred to collectively as
the “Stockholders”. 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. Capitalized terms
used herein without definition are defined in Section 27.

          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”), the Company and Doane Pet Care Company
(“DPC”) (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 the Company, with the Company as the surviving corporation (the “Merger”);

          WHEREAS, immediately prior to the Merger, the issued and outstanding capital stock of Newco
consisted of (a) 3,067,454.14 shares of Class A common stock of Newco, par value $0.01 per
share and (b) 71.32 shares of Class B common stock of Newco, par value $0.01 per share; and

          WHEREAS, at the Effective Time (as defined in the Merger Agreement), each issued and
outstanding share of Newco was converted into one issued and outstanding share of the Company by
virtue of the Merger, resulting in each issued and outstanding share of Class A common stock of
Newco being converted into one issued and outstanding share of Class A Common Stock and each issued
and outstanding share of Class B common stock of Newco being converted into one issued and
outstanding share of Class B Common Stock.

          NOW, THEREFORE, in consideration of the mutual agreements contained herein, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

 

          1. Restrictions on Transfers of Common Stock.

          1.1 Restriction 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 4.1 (“Sale of Class B
Common Stock by Investor Stockholder”), (b) pursuant to Section 4.2 (“Forced Sale of Class
B Common Stock”), (c) in a Registration, or (d) with the prior written consent of
OTPP, such consent to be in OTPP’s sole discretion.

          1.2 Restrictions on Transfers by the Management Stockholders.

          (a) Generally. No shares of Common Stock now or hereafter owned by any Management
Stockholder, nor any interest therein, nor any rights relating thereto, may be Transferred except
(i) pursuant to Section 1.2(b) (“Estate Planning Transfers”) or, in case of his or her
death, by will or by the laws of intestate succession, to his or her executors, administrators,
testamentary trustees, legatees or beneficiaries, (ii) pursuant to Section 2.1 (“Right to
Sell”), (iii) pursuant to Section 3.1 (“Right to Purchase”), (iv) pursuant to
Section 7.1 (“Tag-Along Rights”), (v) pursuant to Section 7.2 (“Drag-Along Rights”), or
(vi) in a Registration.

          (b) Estate Planning Transfers. Shares of Common Stock held by Management Stockholders
may be Transferred for estate-planning purposes of such Management Stockholder to (i) a
trust, the beneficiaries of which are such Management Stockholder, his or her spouse, his or her
parents, members of his or her immediate family or his or her lineal descendants, (ii) a
charitable remainder trust, the income from which will be paid to such Management Stockholder
during his or her life, (iii) a corporation, the stockholders of which are only such
Management Stockholder, his or her spouse, his or her parents, members of his or her immediate
family or his or her lineal descendants, or (iv) a partnership or limited liability
company, the partners or members of which are only such Management Stockholder, his or her spouse,
his or her parents, members of his or her immediate family or his or her lineal descendants
(transferees permitted pursuant to clauses (i) through (iv) of this Section 1.2(b), together with
the Persons enumerated in clause (i) of Section 1.2(a) above are collectively referred to herein as
“Permitted Transferees”); provided, however, that if a Permitted Transferee
ceases to be a Permitted Transferee of such Management Stockholder, any Transfer made to such
Permitted Transferee shall be revoked and shall be null and void.

          1.3 Other Restrictions. Notwithstanding anything to the contrary contained in this
Agreement, a Non-OTPP Stockholder shall not Transfer any shares of Common Stock to any resident of
the Province of Ontario, Canada, without the prior written consent of OTPP, other than any Transfer
of such Non-OTPP Stockholder’s shares of Common Stock pursuant to Section 14.1 of this Agreement.

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          2. Sale by Management Stockholders to the Company.

          2.1 Right to Sell. Subject to all subsections of this Section 2 and to Section 6
(“Prohibited Purchases”), each of the Management Stockholders shall have the right to sell to the
Company, and the Company shall have the obligation to purchase from each such Management
Stockholder, all or any portion of such Management Stockholder’s shares of Rollover Stock at the
Fair Market Value (as defined in Section 5.1) of such shares of Rollover Stock to be sold, only if
the employment of such Management Stockholder with the Company or any Subsidiary that employs such
individual (or by the Company on behalf of any such Subsidiary) (a) is terminated without
Cause or (b) terminates as a result of the death or Disability of such Management
Stockholder.

          2.2 Notice. If any Management Stockholder desires to sell shares of Rollover Stock
pursuant to Section 2.1, he or she (or his or her estate, trust, corporation or partnership, as the
case may be) shall notify the Company not more than 60 days after (a) such Management
Stockholder is terminated without Cause or (b) the termination of employment as a result of
the death or Disability of such Management Stockholder. Each such notice shall specify the number
of shares of Rollover Stock such Management Stockholder owns at the time notice is given.
Notwithstanding anything to the contrary in this Section 2, if required in order to prevent any
shares of Common Stock from being accounted for as variable awards or as Company liabilities, the
notice periods specified in this Section 2.2 shall not commence until the date that is six months
and one day after the date they would otherwise commence (or such longer or shorter period as may
be required under generally accepted accounting principles).

          2.3 Payment. Subject to Section 6 (“Prohibited Purchases”), payment for any shares of
Common Stock sold by a Management Stockholder pursuant to Section 2.1 shall be made no later than
on the date that is 90 days (or the first business day thereafter if the 90th day is not
a business day) following the date of receipt by the Company of such Management Stockholder’s
notice with respect to such shares pursuant to Section 2.2. The Company shall receive customary
representations and warranties from each Management Stockholder regarding the shares of Common
Stock that are the subject of Section 2.1, including but not limited to a representation and
warranty that such Management Stockholder has good and marketable title to such shares to be
transferred free and clear of all liens, claims and other encumbrances.

          3. Right of the Company and OTPP to Purchase from Management Stockholders.

          3.1 Right to Purchase. Subject to all subsections of this Section 3 and to Section 6
(“Prohibited Purchases”), the Company shall have the right (but not the obligation), exercisable by
the Board in its sole discretion (excluding such Management

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Stockholder or other members of the Board who are designees of the Management Stockholders),
to purchase from each Management Stockholder, and each such Management Stockholder shall have the
obligation, upon the Company exercising such right, to sell to the Company, all or any portion, of
such Management Stockholder’s shares of Common Stock:

     (i) at the lesser of the Fair Market Value and the Carrying Value (as defined in
Section 5.2) of such shares of Common Stock to be purchased, if such Management
Stockholder’s employment with the Company and any Subsidiary that employs such individual
is terminated by the Company and any such Subsidiary (or by the Company on behalf of any
such Subsidiary) for Cause; or

     (ii) at the Fair Market Value of such shares of Common Stock to be purchased, if such
Management Stockholder’s employment with the Company and any Subsidiary that employs such
individual is terminated by the Company or such Management Stockholder for any reason other
than for Cause.

          3.2 Notice. If the Company desires to purchase shares of Common Stock from a
Management Stockholder pursuant to Section 3.1, it shall notify such Management Stockholder (or his
or her estate, trust, corporation or partnership, as the case may be) not more than 90 days after
the date of termination of employment of such Management Stockholder; provided that, with
respect to the Company’s purchase of Common Stock acquired by such Management Stockholder pursuant
to the exercise of Options occurring after the date of termination of employment of such Management
Stockholder (to the extent such exercise is permitted by the underlying option agreement), the
notice required by this Section 3.2 shall be given by the Company not later than 90 days after the
acquisition of such shares by such Management Stockholder. Notwithstanding anything to the
contrary in this Section 3, if required in order to prevent any shares of Common Stock from being
accounted for as variable awards or as Company liabilities, the notice periods specified in this
Section 3.2 shall not commence until the date that is six months and one day after the date they
would otherwise commence (or such longer or shorter period as may be required under generally
accepted accounting principles).

          3.3 Payment. Subject to Section 6 (“Prohibited Purchases”), payment for any shares of
Common Stock purchased by the Company pursuant to Section 3.1 shall be made on the date that is 30
days (or the first business day thereafter if the 30th day is not a business day)
following the date of the receipt by a Management Stockholder of the Company’s notice with respect
to such shares pursuant to Section 3.2. The Company shall receive customary representations and
warranties from each Management Stockholder regarding the shares of Common Stock that are the
subject of Section 3.1, including but not limited to a representation and warranty that such
Management

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Stockholder has good and marketable title to such shares to be transferred free and clear of
all liens, claims and other encumbrances.

          4. Sale of Class B Common Stock.

          4.1 Sale of Class B Common Stock by Investor Stockholder. Subject to Section 4.3, the
Investor Stockholder shall have the right but not the obligation to sell to the Company, and the
Company shall have the obligation to purchase from the Investor Stockholder, at any time all (but
not less than 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 5.3). If the Investor Stockholder desires to exercise its right pursuant to this Section
4.1, it shall provide the Company 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 2.1 of the Voting Agreement. Payment for any shares of Class B Common Stock sold by the
Investor Stockholder pursuant to this Section 4.1 shall be made no later than on the date that is
90 days (or the first business day thereafter if such 90th day is not a business day)
following the date of receipt by the Company of the Investor Stockholder’s notice pursuant to this
Section 4.1. Any purchaser of Class B Common Stock pursuant to this Section 4.1 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 4.1, 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.

          4.2 Forced Sale of Class B Common Stock. Subject to Section 4.3, the Company shall
have the right but not the obligation to redeem, at any time, all, but not less than all, of the
then outstanding shares of Class B Common Stock, and each holder of such shares shall have the
obligation, upon the Company’s exercise of such right, to transfer to the Company, all of such
holder’s shares of Class B Common Stock for an amount per share equal to the Class B Common Stock
Purchase Price. If the Company desires to redeem shares of Class B Common Stock from the holders
thereof pursuant to this Section 4.2, it shall notify the holders thereof in writing;
provided that such notice may be revocable or conditional or both. Payment for the shares
of Class B Common Stock redeemed by the Company pursuant to this Section 4.2 shall be made on the
date that is specified in the Company’s notice with respect to such shares pursuant to this Section
4.2. The Company shall receive customary representations and warranties from each holder of Class
B Common Stock regarding the shares of Class B Common Stock that are the subject of this Section
4.2, including, but not limited to, a representation and warranty that such holder has good and
marketable title to such shares to be transferred, free and clear of all liens, claims and other
encumbrances.

5

 

          4.3 Limitations. Notwithstanding anything to the contrary herein, the Company shall
not be permitted or obligated to purchase any shares of Class B Common Stock to the extent the
Company is prohibited from purchasing such shares by, or such purchase would conflict with,
applicable law or any debt instruments or agreements, including any amendment, renewal, extension,
substitution, refinancing, replacement or other modification thereof, which have been entered into
or which may be entered into by the Company or any of its Subsidiaries, including those relating to
acquisitions by the Company or recapitalizations of the Company (the “Financing
Documents”).

          4.4 Failure to Make Payment. If the Company fails to make any payment when due to the
Investor Stockholder under this Section 4, (a) OTPP shall, or shall cause a third party to,
pay to the Investor Stockholder such percentage of the portion of the aggregate Class B Common
Stock Purchase Price which the Company fails to pay as is equal to OTPP’s direct or indirect
percentage equity interest in the Company at the time of receipt of the written notice pursuant to
Section 4.1 or Section 4.2, as the case may be, and (b) the Company shall pay any remaining
portion of the aggregate Class B Common Stock Purchase Price with a subordinated note, which shall
be fully subordinated in right of payment and exercise of remedies to the lenders’ rights under the
Financing Documents, shall be payable as soon as the impediment under this Section 4.3 has been
removed, shall bear interest at a rate equal to LIBOR plus 300 basis points and shall permit its
transfer by the Investor Stockholder to any of its controlling Affiliates.

          5. Purchase Price.

          5.1 Fair Market Value. The “Fair Market Value” of any share of Common Stock
being purchased by the Company shall be the amount which the holder of each such share would
receive following a sale of the Company at its market value as determined in good faith by the
Board. The Fair Market Value of any share of Common Stock to be purchased pursuant to Sections 2.1
or 3.1 shall be determined by the Board as of the later of (a) the date of termination of
the Management Stockholder’s employment and (b) a date determined by the Board within
thirty days prior to the delivery of the notice pursuant to Sections 2.2 or 3.2.

          5.2 Carrying Value. For the purposes of this Agreement, the “Carrying Value”
of any share of Common Stock being purchased by the Company shall be equal to the price paid by the
selling Stockholder for any such share less the amount of dividends and other distributions paid in
respect of such share after the Closing Date; provided that the price of any shares of
Rollover Stock shall be equal to the Closing Date Value, less the amount of dividends and
distributions paid in respect of such shares after the Closing Date.

          5.3 Class B Common Stock Purchase Price. Unless otherwise agreed to by the Investor
Stockholder and the Company, the “Class B Common Stock Purchase 

6

 

Price” of any share of Class B Common Stock purchased pursuant to Section 4.1 or
Section 4.2, as the case may be, shall be an amount equal to (a) the sum of (i) any
accrued and unpaid dividends pursuant to Article Fourth, Section 2(a)(A) of the Certificate of
Incorporation, (ii) any accrued and unpaid Annual Dividend Amount (as defined in the
Certificate of Incorporation and, for the avoidance of doubt, without taking into account any
Additional Amounts (as defined therein)) and (iii) any additional dividends to be declared
by the Company (assuming, for this purpose, that the Company has made an election to declare such
additional dividends) pursuant to Section 11.3, to the extent (and only to the extent) such
dividends have not already been declared and paid, minus (b) any Adjustment Amount.
For the avoidance of doubt, to the extent that the Class B Common Stock Purchase Price is a
negative amount, such amount (expressed as a positive amount) shall be paid to the Company by the
holder of such share of Class B Common Stock upon the consummation of the transactions contemplated
by Section 4.1 or Section 4.2, as the case may be. Payment of the Class B Common Stock Purchase
Price to which the holders of the Class B Common Stock may become entitled shall be made without
withholding or deduction for, or on account of, any and all present and future Taxes, assessments
or other governmental charges of whatever nature imposed or levied by or on behalf of the United
States, or any political subdivision or authority in or of the United States or any other
jurisdiction from which payments of the Class B Common Stock Purchase Price are made, unless the
withholding or deduction is required by law. In the event (i) any such withholding or
deduction on payments of the Class B Common Stock Purchase Price is required by law or (ii)
the Investor Stockholder becomes subject to U.S. federal, state or local income Tax, or franchise
Tax, or any other Tax imposed on or measured by income, on its net income with respect to Special
Dividends (as defined in the Certificate of Incorporation) or payments of the Class B Common Stock
Purchase Price solely as a result of the Investor Stockholder owning the Class B Common Stock or
performing its obligations pursuant to this Agreement, the Voting Agreement or the Subscription
Agreements, unless otherwise agreed to by the Investor Stockholder and the Company, the Special
Dividends or Class B Common Stock Purchase Price, as the case may be, shall include such additional
amounts as may be necessary so that the net amount received by the Investor Stockholder, after such
withholding, deduction or Tax, will equal the amount that such holder would have received had the
Special Dividends or Class B Common Stock Purchase Price, as the case may be, not been subject to
such withholding, deduction or Tax. Notwithstanding any other provision of this Agreement to the
contrary, (A) no additional amounts shall be paid to the Investor Stockholder in respect of
Taxes if such Taxes (“Excluded Taxes”) arise (x) in the case of clause (ii) of the
prior sentence, as a result of the Investor Stockholder being treated as a “United States person”
within the meaning of Section 7701(a) (30) of the Internal Revenue Code of 1986, as amended, or
actually performing (including through a director, shareholder, employee, agent or otherwise) any
of its obligations pursuant to this Agreement within the United States or (y) as a result
of the Investor Stockholder breaching any of its obligations under this Agreement, the Voting
Agreement or the Subscription Agreements and (B) the Investor Stockholder shall not be
permitted to receive duplicative payments

7

 

of additional amounts under this Agreement or Additional Amounts under the Certificate of
Incorporation in respect of the same Tax. To the extent that the Investor Stockholder becomes
entitled to additional amounts pursuant to this Section 5.3 or Additional Amounts (as defined in
the Certificate of Incorporation) the Investor Stockholder shall promptly notify the Company
thereof.

          6. Prohibited Purchases. Notwithstanding anything to the contrary herein, the Company
shall not be permitted or obligated to purchase any shares of Common Stock from a Management
Stockholder hereunder to the extent (a) the Company is prohibited from purchasing such
shares by applicable law or by any Financing Documents, (b) an event of default has
occurred (or, with notice or the lapse of time or both, would occur) under any Financing Document
and is (or would be) continuing, (c) the purchase of such shares of Common Stock would, or
in the view of the Board (excluding, if applicable, such Management Stockholder and other members
of the Board who are designees of the Management Stockholders), would be reasonably likely to,
result in the occurrence of an event of default under any Financing Document or create a condition
which would be reasonably likely to, with notice or lapse of time or both, result in such an event
of default or (d) the purchase of such shares of Common Stock would, in the view of the
Board (excluding such Management Stockholder and other members of the Board who are designees of
the Management Stockholders), be imprudent in view of the financial condition (present or
projected) of the Company or any of its Subsidiaries or the anticipated impact of the purchase of
such shares of Common Stock on the Company’s or any of its Subsidiaries’ ability to meet their
respective obligations under any Financing Document or otherwise. If shares of Common Stock which
the Company has the right or obligation to purchase on any date pursuant to Section 2.1 (“Right to
Sell”) or Section 3.1 (“Right to Purchase”) exceed the total amount permitted to be purchased on
such date pursuant to the preceding sentence (the “Maximum Amount”), the Company shall
purchase on such date only that number of shares of Common Stock up to the Maximum Amount (if any)
(and shall not be required to purchase more than the Maximum Amount) in such amounts as the Board
shall in good faith determine, applying the following order of priority:

          (a) First, the shares of Common Stock of all Management Stockholders whose shares of Common
Stock are being purchased by the Company by reason of termination of employment due to death or
Disability and, to the extent that the number of shares of Common Stock that the Company is
obligated to purchase from such Management Stockholders (but for this Section 6) exceeds the
Maximum Amount, such shares of Common Stock pro rata among such Management Stockholders on the
basis of the number of shares of Common Stock held by each of such Management Stockholders that the
Company is obligated to or has the right to purchase,

          (b) Second, to the extent that the Maximum Amount is in excess of the amount the Company
purchases pursuant to clause (a) above, the shares of Common

8

 

Stock of all Management Stockholders whose shares of Common Stock are being purchased by the
Company by reason of termination of employment without Cause up to the Maximum Amount (as reduced
by shares described in clause (a) to be purchased) and, to the extent that the number of shares of
Common Stock that the Company is obligated to purchase from such Management Stockholders (but for
this Section 6) exceeds the Maximum Amount (as reduced by shares described in clause (a) to be
purchased), such shares of Common Stock pro rata among such Management Stockholders on the basis of
the number of shares of Common Stock held by each of such Management Stockholders that the Company
is obligated or has the right to purchase, and

          (c) Third, to the extent the Maximum Amount is in excess of the amounts the Company purchases
pursuant to clauses (a) and (b) above, the shares of Common Stock of all other Management
Stockholders whose shares of Common Stock are being purchased by the Company up to the Maximum
Amount (as reduced by shares described in clauses (a) and (b) to be purchased) and, to the extent
that the number of shares of Common Stock that the Company is obligated to purchase from such
Management Stockholders (but for this Section 6) exceeds the Maximum Amount (as reduced by shares
described in clauses (a) and (b) to be purchased), the shares of Common Stock of such Management
Stockholders in such order of priority and in such amounts as the Board (excluding such Management
Stockholders and other members of the Board who are designees of the Management Stockholders) in
its sole discretion shall in good faith determine to be appropriate under the circumstances.

          Notwithstanding anything to the contrary contained in this Agreement, if the Company is unable
to make any payment when due to any Management Stockholder under this Agreement by reason of this
Section 6, the Company shall have the option to either (i) make such payment at the
earliest practicable date permitted under this Section 6 or (ii) pay the purchase price for
such shares of Common Stock with a subordinated note, which is fully subordinated in right of
payment and exercise of remedies to the lenders’ rights under the Financing Documents;
provided that any such note shall be secured by a pledge of the Common Stock so purchased
and be payable as soon as the impediment under this Section 6 has been removed and shall bear
interest at a rate equal to LIBOR plus 300 basis points.

          7. Tag-Along and Drag-Along Rights.

          7.1 Tag-Along Rights.

          (a) In the event that at any time OTPP proposes to sell shares of Class A Common Stock owned
by it to any Person (a “Proposed Purchaser”), other than any Transfer (i) pursuant
to a Registration or Rule 144, or (ii) to an Affiliate, then OTPP will promptly provide
each Non-OTPP Stockholder written notice (a “Sale Notice”) of such proposed sale (a
“Proposed Sale”) and the material terms of the Proposed Sale as of the

9

 

date of Sale Notice (the “Material Terms”), including the aggregate number of shares
of Class A Common Stock the Proposed Purchaser is willing to purchase, the price of such shares and
the identity of the Proposed Purchaser. If, within 30 days of the receipt of the Sale Notice, OTPP
receives a written request (a “Sale Request”) to include shares of Class A Common Stock
held by one or more Management Stockholders (including any number of shares to be acquired by such
Management Stockholder in or before the closing of the Proposed Sale), such Class A Common Stock
shall be so included as provided therein; provided, however, that any Sale Request
shall be irrevocable unless (x) there shall be a material adverse change in the Material
Terms or (y) otherwise mutually agreed to in writing by such Management Stockholders and
OTPP. Each Management Stockholder wishing to include in the Proposed Sale shares of Option Stock
must include with such Management Stockholder’s Sale Request an irrevocable commitment to exercise
such Options immediately prior to the closing of such Proposed Sale, subject only to the closing of
such Proposed Sale.

          (b) The number of shares of Class A Common Stock that any Management Stockholder will be
permitted to include in a Proposed Sale on a pro rata basis pursuant to a Sale Request will be
equal to the product of (i) (A) the number of shares of Class A Common Stock held
by such Management Stockholder divided by (B) the number of shares of Class A Common Stock
held by all Stockholders participating in such Proposed Sale and (ii) the aggregate number
of shares of Common Stock proposed to be sold in such Proposed Sale.

          (c) Shares of Class A Common Stock subject to a Sale Request will be included in a Proposed
Sale pursuant hereto and to any agreement with the Proposed Purchaser relating thereto on the same
terms and subject to the same conditions applicable to the shares of Class A Common Stock which
OTPP proposes to sell in the Proposed Sale. Such terms and conditions shall include, without
limitation, (i) the sale consideration (which shall be reduced by the fees and expenses
incurred by OTPP and the Company in connection with the Proposed Sale) and (ii) the
provision of information, representations, warranties, covenants and requisite indemnifications;
provided, however, that (x) any representations and warranties relating
specifically to any Management Stockholder shall only be made by that Management Stockholder; and
(y) the form of consideration to be received by OTPP in connection with the Proposed Sale
may be different from that received by the Management Stockholders so long as the per share value
of the consideration to be received by OTPP is the same or less than that to be received by the
Management Stockholders (as reasonably determined by the Board in good faith).

          (d) Upon delivering a Sale Request, each Management Stockholder will, if requested by OTPP (or
any of its Affiliates), execute and deliver a custody agreement and power of attorney in form and
substance satisfactory to OTPP (or any such Affiliate of OTPP) (a “Custody Agreement and Power
of Attorney”) with respect to

10

 

the shares of the Class A Common Stock which are to be included in the Proposed Sale pursuant
to this Section 7.1. The Custody Agreement and Power of Attorney will provide, among other things,
that each such Management Stockholder will deliver to and deposit in custody with OTPP, named as
the custodian and attorney-in-fact therein, a certificate or certificates representing such shares
of Class A Common Stock (duly endorsed in blank by the registered owner or owners thereof or
accompanied by duly executed stock powers in blank) and irrevocably appoint OTPP as such Management
Stockholder’s agent and attorney-in-fact with full power and authority to act under a custody
agreement and power of attorney on behalf of such Management Stockholder with respect to the
matters specified therein.

          (e) Each Management Stockholder, to the extent it exercises rights pursuant to this Section
7.1, hereby agrees to (i) cooperate in good faith to effectuate such Proposed Sale,
(ii) consent to and raise no objections against, and (iii) take all necessary or
desirable actions in connection with, the consummation of the Proposed Sale, including those
actions reasonably requested by OTPP. Without limiting the generality of the foregoing, subject to
the terms set forth in this Section 7.1, each Management Stockholder hereby waives any dissenters
rights, appraisal rights or similar rights in connection with such Proposed Sale.

          7.2 Drag-Along Rights.

          (a) In the event that any time OTPP proposes to sell shares of Class A Common Stock owned by
it to any Proposed Purchaser other than any Transfer (i) pursuant to a Registration or Rule
144, or (ii) to an Affiliate, and the shares proposed to be sold, together with all shares
of Class A Common Stock previously sold by OTPP and/or its Affiliates would represent more than 50%
of the aggregate number of shares of Class A Common Stock owned by OTPP immediately after the
Closing, then OTPP may provide each Non-OTPP Stockholder with a written notice (a “Drag-Along
Notice”) of such Proposed Sale and the Material Terms thereof not less than 15 business days
prior to the proposed closing date of the Proposed Sale, and each Management Stockholder hereby
agrees to sell to such Proposed Purchaser that number of shares of Class A Common Stock equal to
the product of (x) the number of shares of Class A Common Stock then held by such
Management Stockholder (plus any number of shares to be acquired by such Management Stockholder on
or before the closing of the Proposed Sale) multiplied by (y) the percentage of the
aggregate Class A Common Stock held by OTPP that is represented by the Class A Common Stock that
OTPP proposes to sell in the Proposed Sale; provided that the number of shares of Class A
Common Stock held by any Stockholder (or all of them) shall be determined on an as-converted basis
as of the date of the Drag-Along Notice.

          (b) Shares of Class A Common Stock subject to a Drag-Along Notice will be included in the
Proposed Sale pursuant hereto and to any agreement with the

11

 

Proposed Purchaser relating thereto on the same terms and subject to the same conditions
applicable to the shares of Class A Common Stock which OTPP proposes to sell in the Proposed Sale.
Such terms and conditions shall include, without limitation, (i) the sale consideration
(which shall be reduced by the fees and expenses incurred by OTPP and the Company in connection
with the Proposed Sale) and (ii) the provision of information, representations, warranties,
covenants and requisite indemnifications; provided, however, that (x) any
representations and warranties relating specifically to any Management Stockholder shall only be
made by that Management Stockholder, and (y) that the form of consideration to be received
by OTPP in connection with the Proposed Sale may be different from that received by the Management
Stockholder so long as the per share value of the consideration to be received by OTPP is the same
or less than the per share cash consideration to be received by the Management Stockholders (as
reasonably determined by the Board in good faith).

          (c) Each Management Stockholder will, if requested by OTPP (or any of its Affiliates), execute
and deliver a Custody Agreement and Power of Attorney in form and substance satisfactory to OTPP
(or any such Affiliate of OTPP) with respect to the shares of Class A Common Stock which are to be
included in the Proposed Sale pursuant to this Section 7.2. The Custody Agreement and Power of
Attorney will provide, among other things, that each such Management Stockholder will deliver to
and deposit in custody with OTPP, named as the custodian and attorney-in-fact therein, a
certificate or certificates representing such shares of Class A Common Stock (duly endorsed in
blank by the registered owner or owners thereof or accompanied by duly endorsed stock powers in
blank) and irrevocably appoint OTPP such Management Stockholder’s agent and attorney-in-fact with
full power and authority to act under a custody agreement and power of attorney on behalf of such
Management Stockholder with respect to the matters specified therein.

          (d) Each Management Stockholder hereby agrees to (i) cooperate in good faith to
effectuate such Proposed Sale, (ii) consent to and raise no objections against, and
(iii) take all necessary or desirable actions in connection with, the consummation of the
Proposed Sale, including those actions reasonably requested by OTPP. Without limiting the
generality of the foregoing, subject to the terms set forth in this Section 7.2, each Management
Stockholder hereby waives any dissenters rights, appraisal rights or similar rights in connection
with such Proposed Sale.

          8. 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

12

 

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 OTPP;
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 OTPP, shall be
elected to the Board;

     (iv) the removal from the Board (with or without cause) of any representative
designated pursuant hereto by OTPP shall be at OTPP’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 8(a) above, each such
holder (to the extent it is a Non-OTPP Stockholder) hereby irrevocably appoints OTPP 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 8(a) above. OTPP may exercise the irrevocable
proxy granted to it hereunder at any time any such holder fails to comply with the provisions of
this Section 8(a). The proxies and powers granted by each such holder pursuant to this Section
8(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.

          (d) The composition of the board of directors (or similar forming bodies) of each of the
Company’s Subsidiaries (a “Subsidiary Board”) shall be determined only upon the approval of
the Board; and any committee of the Board or any Subsidiary Board shall be created only upon the
approval of the Board or such Subsidiary Board; provided that the composition of the board
of directors of DPC shall be as provided in the Voting Agreement.

13

 

          9. 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:

	 	(a)	 	“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 ENTERPRISES,
INC. (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 STOCKHOLDERS AGREEMENT OF THE
ISSUER, DATED AS OF OCTOBER 24, 2005 (THE “STOCKHOLDERS AGREEMENT”).”
	 
	 	(b)	 	“THE SHARES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO
RESTRICTIONS ON TRANSFER AND OTHER CONDITIONS AS SPECIFIED IN THE STOCKHOLDERS
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.”
	 
	 	(c)	 	“THE ISSUER WILL FURNISH WITHOUT CHARGE TO EACH STOCKHOLDER
WHO SO REQUESTS THE POWERS, 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.”

14

 

In addition, certificates representing shares of Class B Common Stock shall bear upon their face
the following legend:

	 	 	 	“THE SHARES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON
VOTING, AN IRREVOCABLE PROXY AND OTHER CONDITIONS AS SPECIFIED IN THE
STOCKHOLDERS 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.”

In addition, certificates representing shares of Common Stock owned by residents of certain states
shall bear any legends required by the laws of such states.

All Stockholders shall be bound by the requirements of such legends. Upon a Registration of any
shares of Common Stock, the certificate representing the registered shares shall be replaced, at
the expense of the Company, with certificates not bearing the legends required by clauses (a) and
(b) of this Section 9.

          10. Covenants; Representations and Warranties.

          10.1 New Management Stockholders. Each of the Stockholders hereby agrees that any
employee of the Company or any of its Subsidiaries who, on or after the date of this Agreement, is
offered shares of any class of Common Stock or holds Options exercisable into shares of Common
Stock shall, as a condition precedent to the acquisition of such shares of Common Stock or the
exercise of such Options, as the case may be, (a) become a party to this Agreement by
executing a signature page to the same and (b) if such employee is a resident of a state
with a community or marital property system, cause his or her spouse to execute a Spousal Waiver in
the form of Exhibit A attached hereto, and deliver such executed signature page to this Agreement
and Spousal Waiver, if applicable, to the Company at its address specified in Section 22 hereof.
Upon such execution and delivery, such employee shall be a Management Stockholder for all purposes
of this Agreement and the Company shall amend Schedule A accordingly.

          10.2 No Other Arrangements or Agreements. Each Stockholder hereby represents and
warrants to the Company and to each other that, except for this Agreement, the Registration Rights
Agreement, any Stock Subscription Agreement, and in the case of any Management Stockholder, any
Exchange Agreement, any Deferred Share Agreement, any employment agreement with the Company or any
Subsidiary and any stock option agreement applicable to such Management Stockholder, he, she or it
has not entered into or agreed to be bound by any other arrangements or agreements of any kind with
any other party with respect to the shares of Common Stock, including, but not limited to,
arrangements or agreements with respect to the acquisition or disposition of

15

 

shares of Common Stock or any interest therein or the voting of shares of Common Stock
(whether or not such agreements and arrangements are with the Company or any of its Subsidiaries,
or Management Stockholders) and each Management Stockholder agrees that, except as expressly
permitted under this Agreement, he or she will not enter into any such other arrangements or
agreements.

          10.3 Additional Representations and Warranties. Each Stockholder represents and
warrants to the Company and each other Stockholder that:

          (a) such Stockholder has the power, authority and capacity (or, in the case of any Stockholder
that is a corporation, limited liability company or limited partnership, all corporate limited
liability company or limited partnership power and authority, as the case may be) to execute,
deliver and perform this Agreement;

          (b) in the case of a Stockholder that is a corporation, limited liability company or limited
partnership, the execution, delivery and performance of this Agreement by such Stockholder have
been duly and validly authorized and approved by all necessary corporate, limited liability company
or limited partnership action, as the case may be;

          (c) this Agreement has been duly and validly executed and delivered by such Stockholder and
constitutes a valid and legally binding obligation of such Stockholder, enforceable in accordance
with its terms, subject to bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting or relating to creditors’ rights generally and general principles of equity;

          (d) the execution, delivery and performance of this Agreement by such Stockholder does not and
will not violate the terms of or result in the acceleration of any obligation under (i) any
material contract, commitment or other material instrument to which such Stockholder is a party or
by which such Stockholder is bound or (ii) in the case of a Stockholder that is a
corporation, limited liability company or limited partnership, the certificate of incorporation and
the by-laws, the certificate of formation and the limited liability company agreement, or the
certificate of limited partnership and the limited partnership agreement, as the case may be;

          (e) in the case of a Stockholder who is married and whose shares of Common Stock constitute
community property or who otherwise requires spousal or other approval for this Agreement to be
legal, valid and binding with respect to such Stockholder’s shares of Common Stock, this Agreement
has been validly authorized and approved by, and constitutes a valid and binding agreement of, such
Stockholder’s spouse, enforceable against such spouse in accordance with its terms; and

16

 

          (f) if such employee is a resident of a state with a community or marital property system,
such employee’s spouse has executed a Spousal Waiver in the form of Exhibit A attached
hereto, and such employee has delivered such executed Spousal Waiver to the Company at its address
specified in Section 22 hereof.

          11. Additional Provisions for the Benefit of the Investor Stockholder.

          11.1 Right to Indemnification.

          (a) Generally. Subject to the limitations and conditions as provided herein or by
applicable law, the Company shall indemnify the Investor Stockholder against judgments, penalties
(including punitive damages), fines, settlements and reasonable and documented expenses (including,
without limitation, reasonable attorneys’ fees) actually incurred by such Investor Stockholder in
connection with any threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative, arbitrative or investigative (hereinafter, a “Proceeding”), or
any appeal in such a Proceeding or any inquiry or investigation that could reasonably lead to such
a Proceeding, in connection with its serving in such capacity to the extent (and only to the
extent) the Investor Stockholder acted within the scope of its authority. Indemnification under
this Section 11.1 shall continue as to a Person who has ceased to serve in the capacity of the
Investor Stockholder for any and all liabilities and damages related to and arising from such
Person’s activities while acting in such capacity.

          (b) Advances. The right to indemnification conferred in this Section 11.1 shall
include a limited right to receive advances for any and all reasonable expenses incurred by the
Investor Stockholder if it was, or is threatened, to be made a named defendant or respondent in a
Proceeding prior to the final disposition of the Proceeding and without any determination as to
such Person’s ultimate entitlement to indemnification; provided, however, that the
right to any such advances shall be contingent on delivery by the Investor Stockholder to the
Company of a written affirmation by the Investor Stockholder of its good faith belief that it has
met the standard of conduct necessary for indemnification under this Section 11.1 and a written
undertaking, by or on behalf of the Investor Stockholder, to repay all amounts so advanced if it
shall ultimately be determined that the Investor Stockholder is not entitled to be indemnified
under this Section 11.1 or otherwise.

          (c) Nature of Right to Indemnification; Contribution. No amendment, modification or
repeal of this Section 11.1 shall have the effect of limiting or denying the rights granted
pursuant to this Section 11.1 with respect to actions taken or Proceedings arising prior to any
such amendment, modification or repeal. It is expressly acknowledged that the indemnification
provided in this Section 11.1 could involve indemnification for negligence or under theories of
strict liability. Notwithstanding anything herein to the contrary, no such indemnification shall
be available in respect of

17

 

any loss or damage to the extent that such loss or damage is determined to have been primarily
caused by the gross negligence, willful misconduct, fraud or bad faith of the Person claiming
indemnification. The right to indemnification and the advancement and payment of expenses
conferred in this Section 11.1 shall not be exclusive of any other right which a Person indemnified
pursuant to Section 11.1 may have or hereafter acquire under any law (common or statutory), this
Agreement, or any other agreement, vote of the Stockholders or otherwise. If this Section 11.1 or
any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then
the Company shall nevertheless indemnify and hold harmless any Person entitled to be indemnified
pursuant to this Section 11.1 as to costs, charges and reasonable and documented expenses
(including reasonable attorneys’ fees), judgments, fines and amounts paid in settlement with
respect to any action, suit or proceeding, whether civil, criminal, administrative or investigative
to the full extent permitted by any applicable portion of this Section 11.1 that shall not have
been invalidated and to the fullest extent permitted by applicable law.

          (d) Third Party Claims. In no case shall the Company be required to indemnify the
Investor Stockholder under this Section 11.1 with respect to any claim against the Investor
Stockholder unless the Company shall be notified by the Investor Stockholder, in writing, of the
written assertion of such claim against it or of any other action commenced against it, reasonably
promptly after it shall have received any such written assertion. The Company shall be entitled to
participate at its own expense in the defense of any such claim or other action, and, if the
Company so elects, the Company may assume the defense of any pending or threatened action against
the Investor Stockholder in respect of which indemnification may be sought hereunder, in which case
the Company shall not thereafter be responsible for the fees and disbursements of legal counsel
under this paragraph; provided that the Company shall not be entitled to assume the defense
of any such action if the named parties to such action include both the Company and the Investor
Stockholder unless representation of both parties by the same legal counsel would not, in the
written opinion of counsel, be inappropriate due to actual or potential conflicting interests
between them.

          (e) Duty to Mitigate. The Investor Stockholder shall take all reasonable steps to
mitigate any of its damages upon becoming aware of any event which would reasonably be expected to,
or does, give rise thereto.

          (f) Investor Stockholder. Notwithstanding anything to the contrary in this Agreement,
for purposes of this Section 11.1 only, the capitalized term “Investor Stockholder” shall mean
Wilchester Investments Limited, a Jersey limited company, in its capacities as (i) the
Investor Stockholder pursuant to this Agreement, (ii) the “Investor Stockholder” pursuant
to the Voting Agreement and(iii) a party to the Guarantee and Collateral Agreement, of even
date herewith, made by the Company, Wilchester Investments Limited and the other parties thereto in
favor of Lehman Commercial Paper Inc.

18

 

          (g) Notice. To the extent that the Investor Stockholder becomes entitled to
indemnification (including, for the avoidance of doubt, any advances) pursuant to this Section
11.1, the Investor Stockholder shall promptly notify the Company thereof.

          11.2 Certain Taxes. If the Investor Stockholder or any of its controlling Affiliates
at any time incurs, becomes subject to, or otherwise becomes liable for, a Transfer Tax or Jersey
value added Tax (or such other equivalent or analogous Tax as may be introduced by the States of
Jersey from time to time) in respect of the Class B Common Stock, the Investor Stockholder shall
promptly notify the Company thereof. In addition, in the event that any U.S. federal, state or
local Taxes (other than Excluded Taxes) are payable by, or imposed upon, the Investor Stockholder
or any of its controlling Affiliates or for which the Investor Stockholder or any of its
controlling Affiliates is otherwise liable in respect of (i) any dividends or distributions
received by the Investor Stockholder with respect to the Class B Common Stock, (ii) the
conversion of the Class B common stock of Newco into Class B Common Stock pursuant to the Merger or
(iii) the receipt by the Investor Stockholder of the Class B Common Stock Purchase Price,
the Investor Stockholder shall promptly notify the Company thereof (such Taxes collectively
referred to herein as “Additional Dividend Covered Taxes”).

          11.3 Additional Dividends. Upon receipt of a notice pursuant to Section 11.1(g) or
Section 11.2, the Company shall either (a) exercise its rights under Section 4.2, or
(b) declare an additional dividend on the Class B Common Stock in such amount as may be
necessary so that the economic position of the Investor Stockholder and its controlling Affiliates
in respect of the Investor Stockholder’s investment in the Class B Common Stock, after both the
receipt of such additional dividend and payment by the Investor Stockholder or its controlling
Affiliates of the amounts in respect of which indemnification is sought, or the amounts incurred by
virtue of such Transfer Tax, such Jersey value added Tax or any Additional Dividend Covered Taxes,
as the case may be, remains the same.

          12. Taxes. The Company shall cause to be prepared and filed all material Tax returns
for the Company and its subsidiaries required to be filed. Upon written request by the Company,
each Stockholder shall furnish to the Company relevant information in its possession that is
necessary or relevant to enable the Tax returns of the Company and its subsidiaries to be prepared
and filed. The Company shall timely furnish, or shall cause to be timely furnished, to each
Stockholder any information that is required to enable Tax returns to be prepared for, or by, such
Stockholder or any of its controlling Affiliates.

          13. Amendment and Modification. This Agreement may not be amended, modified or
supplemented except by a written instrument signed by the Company and OTPP; provided,
however, that the Company may, pursuant to Section 10.1, amend Schedule A without the
consent of any other party hereto.

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Notwithstanding the foregoing, this Agreement may not be amended, modified or supplemented
(i) without the prior written consent of a majority in interest of the Management
Stockholders (based on the aggregate number of shares of Common Stock owned by the Management
Stockholders at the time of such amendment, modification or supplement), if such amendment,
modification or supplement would reasonably be expected to materially and adversely affect the
Management Stockholders or (ii) without the prior written consent of the Investor
Stockholder, if such amendment, modification or supplement would reasonably be expected to
adversely affect the Investor Stockholder. The Company shall notify all Stockholders promptly
after any such amendment, modification or supplement shall have taken effect. Except to the extent
any such waiver, amendment, modification or supplement would adversely affect the Investor
Stockholder, the Investor Stockholder hereby agrees to vote all of its shares of Class B Common
Stock as directed by OTPP in connection with any waiver, amendment, modification or supplement to
the Certificate of Incorporation on which shares of Class B Common Stock are entitled to vote.

          14. Parties.

          14.1 Assignment by the Company. The Company shall have the right to assign to OTPP
all or any portion of its rights and obligations under Section 2.1 (“Right to Sell”), Section 3.1
(“Right to Purchase”), Section 4.1 (“Sale of Class B Common Stock by Investor Stockholder”) and
Section 4.2 (“Forced Sale of Class B Common Stock”); provided that any such assignment or
assumption is accepted by OTPP. If the Company has not exercised its right to purchase shares of
Common Stock pursuant to any such Section within 15 days of receipt by the Company of the letter,
notice or other occurrence giving rise to such right, then OTPP shall have the right to require the
Company to assign such right. OTPP shall have the right to assign to one or more of its Affiliates
all or any of its rights to purchase shares of Common Stock pursuant to this Section 14.1.

          14.2 Assignment Generally. The provisions of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective heirs, legal representatives,
successors and assigns; provided that neither the Company nor any Non-OTPP Stockholder
shall assign any of its rights or obligations hereunder without the consent of OTPP unless, in the
case of a Non-OTPP Stockholder, such assignment is in connection with a Transfer explicitly
permitted by this Agreement and, prior to such assignment, such assignee complies with the
requirements of Section 14.4.

          14.3 Termination. Any Stockholder who ceases to own shares of Common Stock or any
interest therein, shall cease to be a party to, or a Person who is subject to, this Agreement and
thereafter shall have no rights or obligations hereunder; provided, however, that a
Transfer of shares of Common Stock not explicitly permitted under this Agreement shall not relieve
a Stockholder of any of his or her obligations hereunder. All rights and obligations pursuant to
Section 1.1 (“Restrictions on Transfers

20

 

by the Investor Stockholder”), Section 1.2 (“Restrictions on Transfers by the Management
Stockholders”), Section 2 (“Sale by Management Stockholders to the Company”), Section 3 (“Right of
the Company and OTPP to Purchase from Management Stockholders”), Section 4 (“Sale of Class B Common
Stock”), Section 5 (“Purchase Price”), and Section 7 (“Tag-Along and Drag-Along Rights”) of this
Agreement shall terminate upon the occurrence of an IPO.

          14.4 Agreements to Be Bound. Notwithstanding anything to the contrary contained in
this Agreement, any Transfer of shares by a Stockholder (the “Transferor”) (other than
(x) pursuant to a Registration or (y) pursuant to Section 2 (“Sale by Management
Stockholders to the Company”), Section 3 (“Right of the Company and OTPP to Purchase from
Management Stockholders”), Section 4.2 (“Forced Sale of Class B Common Stock”), Section 7
(“Tag-Along and Drag-Along Rights”) or Section 14.3) shall be permitted under the terms of this
Agreement only if the transferee of such Transferor (the “Transferee”) shall agree in
writing to be bound by the terms and conditions of this Agreement pursuant to an instrument of
assumption reasonably satisfactory in substance and form to the Company, and in the case of a
Transferee of a Management Stockholder who resides in a state with a community property system,
such Transferee causes his or her spouse, if any, to execute a Spousal Waiver in the form of
Exhibit A attached hereto. Upon the execution of the instrument of assumption by such Transferee
and, if applicable, the Spousal Waiver by the spouse of such Transferee, such Transferee shall
enjoy all of the rights and shall be subject to all of the restrictions and obligations of the
Transferor of such Transferee, including, without limitation, if such Transferor was a Management
Stockholder, the provisions of Section 2 (“Sale by Management Stockholders to the Company”) and
Section 3 (“Right of the Company and OTPP to Purchase from Management Stockholders”) or, if such
Transferor was an Investor Stockholder, the provisions of Section 4.1 (“Sale of Class B Common
Stock by Investor Stockholder”), Section 4.2 (“Forced Sale of Class B Common Stock”) and Section 8
(“Election of Directors”) (which shall continue to apply as though such Transferor were still the
holder of such shares).

          15. Recapitalizations, Exchanges, etc. Except as otherwise provided herein, the
provisions of this Agreement shall apply to the full extent set forth herein with respect to
(a) the shares of Common Stock and (b) any and all shares of capital stock of the
Company or any successor or assign of the Company which may be issued in respect of, in exchange
for, or in substitution for the shares of Common Stock, by reason of any stock dividend, split,
reverse split, combination, recapitalization, reclassification, merger, consolidation or otherwise.
All share numbers and percentages shall be proportionately adjusted to reflect any stock split,
stock dividend or other subdivision or combination effected after the date hereof.

21

 

          16. No Third Party Beneficiaries. Except as otherwise provided herein, this Agreement
is not intended to confer upon any Person, except for the parties hereto, any rights or remedies
hereunder.

          17. Preparation for an IPO. Notwithstanding anything in this Agreement to the
contrary, in connection with and subject to the closing of an IPO, the Stockholders shall vote
their shares of Common Stock and take all actions necessary or desirable (including attendance at
meetings in person or by proxy for purposes of obtaining a quorum and execution of written consents
in lieu of meetings), and the Company shall take all necessary and desirable actions within its
control (including calling special board and stockholder meetings), to amend the Amended and
Restated Certificate of Incorporation and the Bylaws of the Company to include such provisions as
the Board in its reasonable judgment determines (which provisions may include provisions preserving
the rights of OTPP as the controlling Stockholder of the Company). In each case, such provisions
will be developed by OTPP and the managing underwriters, taking into account (a)
then-prevailing corporate governance practices for companies operating in the Company’s and its
Subsidiaries’ industry and in public offerings involving controlling stockholders and (b)
the then prevailing or applicable practices and requirements of any exchange on which Common Stock
may be listed.

          18. Further Assurances. Each party hereto shall do and perform or cause to be done
and performed all such further acts and things and shall execute and deliver all such other
agreements, certificates, instruments and documents as any other party hereto or Person subject
hereto may reasonably request in order to carry out the intent and accomplish the purposes of this
Agreement and the consummation of the transactions contemplated hereby.

          19. Governing Law; Jurisdiction. This Agreement and the rights and obligations of the
parties hereunder and the Persons subject hereto shall be governed by, and construed and
interpreted in accordance with, the laws of the State of Delaware, without giving effect to the
choice of law principles thereof. By execution and delivery of this Agreement, each party hereto
irrevocably submits to the exclusive jurisdiction of (a) the Supreme Court of the State of
New York, New York County and (b) the United States District Court for the Southern
District of New York, for purposes of any claim, action or proceeding arising out of this Agreement
or any other transaction contemplated hereby. Each party hereto agrees to commence any such claim,
action or proceeding only in the United States District Court for the Southern District of New York
or, if such claim, action or proceeding cannot be brought in such court for jurisdictional reasons,
in the Supreme Court of the State of New York, New York County. Each of the parties hereby waives,
and agrees not to assert in any such dispute, to the fullest extent permitted by applicable law,
any claim that (a) such party is not personally subject to the jurisdiction of such courts,
(b) such party and such party’s property is immune from any legal process issued by such
courts or (c) any claim, action or proceeding commenced in

22

 

such courts is brought in an inconvenient forum. Each party hereto further agrees that
service of any process, summons, notice or document by U.S. registered mail to such party’s address
set forth in Section 22 shall be effective service of process for any claim, action or proceeding
with respect to any matters to which it has submitted to jurisdiction in this Section 19 or
otherwise.

          20. Invalidity of Provision. The invalidity or unenforceability of any provision of
this Agreement in any jurisdiction shall not affect the validity or enforceability of the remainder
of this Agreement in that jurisdiction or the validity or enforceability of this Agreement,
including that provision, in any other jurisdiction.

          21. Waiver. The waiver by any party hereto of a breach or default of any provision of
this Agreement shall not operate or be construed as a further or continuing waiver of such breach
or default or as a waiver of any other or subsequent breach or default, except as otherwise
explicitly provided for in such waiver. Except as otherwise expressly provided herein, no failure
on the part of any party to exercise, and no delay in exercising, any right, power or remedy
hereunder, or otherwise available in respect hereof at law or in equity, shall operate as a waiver
thereof, nor shall any single or partial exercise of such right, power or remedy by such party
preclude any other or further exercise thereof or the exercise of any other right, power or remedy.

          22. Notices. All notices, requests, claims, demands, letters, waivers and other
communications permitted or required under this Agreement shall be in writing and shall be deemed
to be duly given if hand delivered to the persons set forth below or if sent by documented
overnight delivery service or registered or certified mail, postage prepaid, return receipt
requested, or by telegram, telex or telecopy, receipt acknowledged, addressed as set forth below or
to such other person or persons and/or at such other address or addresses as shall be furnished in
writing by any party hereto to the other parties hereto. Any such notice or communication shall be
deemed to have been given as of the date received, in the case of personal delivery, or on the date
shown on the receipt or confirmation therefor in all other cases:

     (i) If to the Company, to it at:

210 Westwood Place South, Suite 400

Brentwood, Tennessee 37027

Attention: Chief Executive Officer

Telephone: (615) 373-7774

Facsimile: (615) 309-1196

with copies (which shall not constitute notice) to:

23

 

Teachers’ Private Capital

Ontario Teachers’ Pension Plan Board

5650 Yonge Street

Toronto, Ontario M2M 4H5 Canada

Attention: Dean Metcalf

                  Michael Padfield, Esq.

Telephone: (416) 730-6166

Facsimile: (416) 730-5083

and Debevoise & Plimpton LLP at its address set forth in clause (iii)
below.

     (ii) If to a Management Stockholder, to his or her attention at the last address of
record for such Management Stockholder in the books and records of the Company.

     (iii) If to OTPP, to it at:

c/o Teachers’ Private Capital

Ontario Teachers’ Pension Plan Board

5650 Yonge Street

Toronto, Ontario M2M 4H5 Canada

Attention: Dean Metcalf

                  Michael Padfield, Esq.

Telephone: (416) 730-6166

Facsimile: (416) 730-5083

with a copy (which shall not constitute notice) to:

Debevoise & Plimpton LLP

919 Third Avenue

New York, New York 10022

Attention: Margaret A. Davenport, Esq.

Telephone: (212) 909-6000

Facsimile: (212) 909-6836

     (iv) If to the Investor Stockholder, to it at:

P.O. Box 150, First Island House

Peter Street

St. Helier, Jersey

Channel Islands, JE4 5NW

Attention: John Honey

24

 

Telephone: (44) 1534 888050

Facsimile: (44) 1534 504891

with a copy (which shall not constitute notice) to:

Sidley Austin Brown & Wood LLP

787 Seventh Avenue 

New York, New York 10019

Attention: Joseph W. Armbrust, Jr., Esq.

Telephone: (212) 839-5300

Facsimile: (212) 839-5599

          23. Headings. The headings to Sections in this Agreement are for the convenience of
the parties only and shall not control or affect the meaning or construction of any provision
hereof.

          24. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original but all of which together shall constitute one and the same
instrument.

          25. Injunctive Relief. Each of the parties hereto agrees that the shares of Common
Stock cannot readily be purchased or sold in the open market, and for that reason, among others,
the Company and the Stockholders will be irreparably damaged in the event this Agreement is not
specifically enforced. Each of the parties hereto therefore further agrees that, in the event of a
breach of any provision of this Agreement, the aggrieved party may elect to institute and prosecute
proceedings in any court of competent jurisdiction to enforce specific performance or to enjoin the
continuing breach of this Agreement. Such remedies shall, however, be cumulative and not
exclusive, and shall be in addition to any other remedy which the Company or any Stockholder may
have.

          26. Trial by Jury. EACH STOCKHOLDER HEREBY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY
ACTION OR PROCEEDING BASED UPON, ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, OR THE
BREACH, TERMINATION OR VALIDITY OF THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY.

          27. Defined Terms. As used in this Agreement, the following terms shall have the
meanings ascribed to them below:

     Adjustment Amount: an amount, if any, equal to the product of (a) the
Annual Dividend Amount (as defined in the Certificate of Incorporation and, for the
avoidance of doubt, without taking into account any Additional Amounts (as

25

 

defined therein)) and (b) a fraction of which (i) the numerator is the
number of calendar days, if any, from and including the date on which the transactions
contemplated by Section 4.1 or Section 4.2, as the case may be, would be consummated until
the calendar day preceding the next anniversary of the Closing Date and (ii) the
denominator is 365.

     Affiliate: a Person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, the Person
specified.

     Board: the board of directors of the Company.

     Cause: unless otherwise provided in such Management Stockholder’s award or
employment agreement, (i) the commission of a felony or the commission of any act
or omission involving moral turpitude, dishonesty, disloyalty or fraud, (ii)
conduct tending to bring the Company or any of its affiliates into public disgrace or
disrepute, (iii) gross negligence or willful misconduct with respect to the Company
or any of its affiliates, (iv) failure to accept and cooperate with actions and
initiatives assigned to the Management Stockholder by the Board, the Chief Executive
Officer of the Company, or the Management Stockholder’s direct supervisor, or (v)
the Management Stockholder or any member of the Management Stockholder’s family shall
engage in any Restricted Activity with any customer, supplier or other person having a
business relation with the Company, without the prior written approval of the Board.

     Certificate of Incorporation: the Company’s Amended and Restated Certificate
of Incorporation, as the same may be amended from time to time.

     Class A Common Stock: the Class A Common Stock of the Company, par value
$0.01 per share.

     Class B Common Stock: the Class B Common Stock of the Company, par value
$0.01 per share.

     Closing: the closing of the transactions contemplated by the Merger
Agreement.

     Closing Date: the effective date of this Agreement.

     Closing Date Value: $100.00 per share of Common Stock, as such number may be
equitably adjusted for any stock dividend, stock split, reverse stock split,
recapitalization or consolidation.

26

 

     Common Stock: the Class A Common Stock and the Class B Common Stock,
including, for the avoidance of doubt, any Rollover Stock.

     Deferred Share Agreements: the Deferred Share Agreements, of even date
herewith, between the Company and the other parties thereto.

     Disability: unless otherwise provided in a Management Stockholder’s award or
employment agreement, a physical or mental impairment that renders a Management Stockholder
unable to perform the essential functions of such Management Stockholder’s position even
with reasonable accommodation (that does not impose an undue hardship on the Company), and
which has lasted at least sixty consecutive days. A physician selected by the Company or
its insurers, and consented to by such Management Stockholder or such Management
Stockholder’s personal representative shall make the determination of the existence of a
Disability. Consent by the Management Stockholder or the Management Stockholder’s personal
representative shall not be unreasonably withheld.

     Doane Pet Care Enterprises, Inc. Stock Incentive Plan: the stock incentive
plan of the Company of even date herewith.

     Exchange Agreements: the Exchange Agreements, of even date herewith, by and
between the Company and each of the Management Stockholders who are a party to such
Exchange Agreements, as the same may be amended, modified, supplemented or restated from
time to time.

     Governmental Entity: any supranational, national, federal, state, municipal
or local governmental or quasi-governmental or regulatory authority (including a national
securities exchange or other self-regulatory body), agency, court, commission or other
similar entity, domestic or foreign.

     Independent Director: any director that may from time to time serve on the
Board who is unaffiliated with any Stockholder that has Board designation rights hereunder.

     IPO: an underwritten initial public offering of Common Stock having an
aggregate offering value (measured by the Company’s proceeds before underwriters’ discounts
and selling commissions) of at least $150 million and after which an established trading
market exists for the Common Stock.

     Option: an option to acquire Common Stock.

     Option Stock: Common Stock acquired pursuant to the exercise of Options.

27

 

     Person: an individual, corporation, partnership, limited liability company,
joint venture, association, trust or other entity or organization, including a government
or political subdivision or an agency or instrumentality thereof.

     Registration: the closing of a public offering pursuant to an effective
registration statement (including a “take down” of a shelf registration statement) under
the Securities Act of 1933, as amended.

     Registration Rights Agreement: the Registration Rights Agreement, of even
date herewith, among the parties hereto, as the same may be amended modified, supplemented
or restated from time to time.

     Restricted Activity: directly or indirectly owning any interest in, managing,
controlling, participating in, consulting with, rendering services for, or in any manner
engaging in any business with any customer, supplier or other person having a business
relation with the Company; provided, however, that the term Restricted
Activity shall not include passive ownership of less than 2% of the outstanding stock of
any class of a corporation which is publicly traded, so long as the Management Stockholder
has no active participation in the business of that corporation.

     Rollover Stock: Common stock of Newco acquired by a Management Stockholder
pursuant to an Exchange Agreement (as such stock was converted into Common Stock by virtue
of the Merger) and Common Stock acquired upon the settlement of Deferred Share Awards (as
such term is defined in the Doane Pet Care Enterprises, Inc. Stock Incentive Plan) awarded
under the Doane Pet Care Enterprises, Inc. Stock Incentive Plan.

     Rule 144: Rule 144 promulgated under the Securities Act of 1933, as amended.

     Stock Subscription Agreements: collectively, the Subscription Agreements, of
even date herewith, between (a) Newco and the other parties thereto and (b)
DPC and the Investor Stockholder.

     Subsidiary: any entity a majority of whose outstanding voting securities is
owned, directly or indirectly, by the Company.

     Tax: any tax, duty, assessment, charge, or other levy separately or jointly
due or payable to, or levied or imposed by any Governmental Entity, including income, gross
receipts, license, wages, payroll, employment, excise, severance, stamp, occupation,
premium, windfall profits, environmental, customs duty, capital, franchise, profits,
withholding, social security, unemployment, disability, real property, personal property,
sales, use, transfer, transaction, registration,

28

 

value added, alternative/add-on minimum, estimated or other tax, duty, charge or other
levy of any kind whatsoever, including any interest, penalty or addition thereto, and any
interest with respect to such addition or penalty.

     Transfer: any direct or indirect sale, assignment, mortgage, transfer,
pledge, hypothecation or other disposal.

     Transfer Taxes: all transfer, stock transfer, real estate transfer,
documentary, stamp, recording and other similar Taxes (including interest, penalties or
additions to any such Taxes, and any interest with respect to such addition or penalty)
incurred in connection with (i) the issuance, sale and delivery of the Class B
common stock of Newco to the Investor Stockholder, (ii) the conversion of such
Class B common stock of Newco into Class B Common Stock pursuant to the Merger or
(iii) the sale or transfer of the Class B Common Stock by the Investor Stockholder
pursuant to this Agreement.

     Voting Agreement: the Voting Agreement, of even date herewith, among the
Company, DPC and the Investor Stockholder.

29

 

          IN WITNESS WHEREOF, this Agreement has been signed by each of the parties hereto, and shall be
effective as of the date first above written.

	 	 	 	 	 
	 	 	DOANE PET CARE ENTERPRISES, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	ONTARIO TEACHERS’ PENSION PLAN BOARD
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name: Glen Silvestri
	 

	 	 	 	Title: Portfolio Manager
	 
	 	 	 	 
	 	 	WILCHESTER INVESTMENTS LIMITED
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

 

 

 

	 	 	 	 	 
	 	 	MANAGEMENT STOCKHOLDER
	 
	 	 	 	 
	 	 	 
	 	 	Douglas J. Cahill
	 
	 	 	 	 
	 

	 	Address:
	 	3510 Hampton Avenue
	 

	 	 	 	Nashville, Tennessee 37215

 

 

 

Exhibit A

SPOUSAL WAIVER

          [INSERT NAME] hereby waives and releases any and all equitable or legal claims and rights,
actual, inchoate or contingent, which [she] [he] may acquire with respect to the disposition,
voting or control of the shares of Common Stock subject to the Stockholders Agreement of Doane Pet
Care Enterprises, Inc., dated as of October 24, 2005, as the same may be amended, modified,
supplemented or restated from time to time, except for rights in respect of the proceeds of any
disposition of such Common Stock.

	 	 	 
	 

	 	 
	 

	 	Name:

 

 

Schedule A

	 	 	 	 	 	 	 	 	 
	 	 	Initial Amount of Common	 	 
	Stockholder	 	Stock Held	 	 
	 	 	Class A Common Stock	 	Class B Common Stock
	OTPP

	 	 	3,059,978.67	 	 	 	21.32	 
	Douglas J. Cahill

	 	 	7,475.47	 	 	 	0	 
	Investor Stockholder

	 	 	0	 	 	 	50exv10w10

 

Exhibit 10.10

EXECUTION COPY

	 	 	 
	 

	 	 
	 

REGISTRATION RIGHTS AGREEMENT

DOANE PET CARE ENTERPRISES, INC.

Dated as of October 24, 2005

	 	 	 
	 

	 	 
	 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	1	 	Registrations Upon Request	 	 	1	 
	 

	 	1.1	 	 	Requests by OTPP
	 	 	1	 
	 

	 	1.2	 	 	Registration Statement Form
	 	 	3	 
	 

	 	1.3	 	 	Expenses
	 	 	3	 
	 

	 	1.4	 	 	Priority in Demand Registrations
	 	 	3	 
	 

	 	1.5	 	 	Right to Withdraw
	 	 	4	 
	 
	 	 	 	 	 	 	 	 	 	 
	2	 	Incidental Registrations	 	 	4	 
	 
	 	 	 	 	 	 	 	 	 	 
	3	 	Registration Procedures	 	 	5	 
	 
	 	 	 	 	 	 	 	 	 	 
	4	 	Underwritten Offerings	 	 	11	 
	 

	 	4.1	 	 	Underwriting Agreement
	 	 	11	 
	 

	 	4.2	 	 	Selection of Underwriters
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 
	5	 	Holdback Agreements	 	 	12	 
	 
	 	 	 	 	 	 	 	 	 	 
	6	 	Preparation; Reasonable Investigation	 	 	13	 
	 
	 	 	 	 	 	 	 	 	 	 
	7	 	No Grant of Future Registration Rights	 	 	13	 
	 
	 	 	 	 	 	 	 	 	 	 
	8	 	Indemnification	 	 	13	 
	 

	 	8.1	 	 	Indemnification by the Company
	 	 	13	 
	 

	 	8.2	 	 	Indemnification by the Sellers
	 	 	14	 
	 

	 	8.3	 	 	Notices of Claims, etc
	 	 	15	 
	 

	 	8.4	 	 	Other Indemnification
	 	 	16	 
	 

	 	8.5	 	 	Indemnification Payments
	 	 	16	 
	 

	 	8.6	 	 	Other Remedies
	 	 	16	 
	 
	 	 	 	 	 	 	 	 	 	 
	9	 	Representations and Warranties	 	 	17	 
	 
	 	 	 	 	 	 	 	 	 	 
	10	 	Definitions	 	 	18	 
	 
	 	 	 	 	 	 	 	 	 	 
	11	 	Miscellaneous	 	 	20	 
	 

	 	11.1	 	 	Rule 144, etc
	 	 	20	 
	 

	 	11.2	 	 	Successors, Assigns and Transferees
	 	 	20	 
	 

	 	11.3	 	 	Stock Splits, etc
	 	 	21	 
	 

	 	11.4	 	 	Amendment and Modification
	 	 	21	 
	 

	 	11.5	 	 	Additional Management Stockholders
	 	 	22	 
	 

	 	11.6	 	 	Governing Law; Jurisdiction
	 	 	22	 
	 

	 	11.7	 	 	Invalidity of Provision
	 	 	22	 
	 

	 	11.8	 	 	Notices
	 	 	23	 
	 

	 	11.9	 	 	Headings; Execution in Counterparts
	 	 	24	 
	 

	 	11.10	 	 	Injunctive Relief
	 	 	24	 

i

 

Table of Contents
(continued)

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	 

	 	 	11.11	 	 	Trial by Jury
	 	 	24	 
	 

	 	 	11.12	 	 	Term
	 	 	24	 
	 

	 	 	11.13	 	 	Further Assurances
	 	 	24	 
	 

	 	 	11.14	 	 	Entire Agreement
	 	 	25	 

Schedule A — Management Stockholders

ii

 

REGISTRATION RIGHTS AGREEMENT

          REGISTRATION RIGHTS AGREEMENT, dated as of October 24, 2005, by and among Doane Pet Care
Enterprises, Inc., a Delaware corporation (the “Company”), Ontario Teachers’ Pension Plan
Board, a corporation without share capital organized under the laws of Ontario, Canada
(“OTPP”), and Douglas J. Cahill, and any other employee of the Company or its subsidiaries
who may become a party to this Agreement pursuant to Section 11.5 hereof (collectively, the
“Management Stockholders”). OTPP and the Management Stockholders are hereinafter referred
to collectively as the “Stockholders”. Capitalized terms used herein without definition
are defined in Section 10.

     1. Registrations Upon Request.

     1.1 Requests by OTPP.

     (a) Notice of Request. At any time, and from time to time, OTPP shall have
the right to request that the Company effect the registration under the Securities Act of
all or a portion of the Registrable Securities owned by OTPP, each such request to specify
the intended method or methods of disposition thereof (it being understood and agreed that
the right to request registration on a Shelf Registration Statement shall be governed by
Section 1.1(b)). Upon any such request, the Company will promptly, but in any event within
20 days, give written notice of such request to all Management Stockholders and thereupon
the Company will, subject to Section 1.4,

     (i) use its best efforts to effect the prompt registration under the
Securities Act of:

     1. the Registrable Securities which the Company has been so requested
to register by OTPP, and

     2. all other Registrable Securities which the Company has been
requested to register by the Management Stockholders (provided, that such
request shall not be for a greater portion of such Management
Stockholders’ Registrable Securities than the portion requested by OTPP)
by written request given to the Company by such holders within 20 days
after the giving of such written notice by the Company to such Management
Stockholders,

all to the extent required to permit the disposition of the Registrable Securities
so to be registered in accordance with the intended method or methods of
disposition of OTPP; and

 

 

     (ii) if requested by OTPP, obtain acceleration of the effective date of the
registration statement relating to such registration.

     (b) Shelf Registration. The right of OTPP to request a registration of
Registrable Securities pursuant to Section 1.1(a) shall include the right, from and after
the first anniversary of an IPO, to request that the Company file a registration statement
to permit the requesting holder to sell Registrable Securities on a delayed or continuous
basis pursuant to Rule 415 under the Securities Act (or any similar rule that may be
adopted by the Commission) in accordance with the intended method or methods of disposition
by such requesting holder (a “Shelf Registration Statement”); it being understood,
for the avoidance of doubt, that, if OTPP makes a request to effectuate a registration in
the manner contemplated by this Section 1.1(b), the Management Stockholders shall have the
right (subject to the limitations regarding the Management Stockholders’ right to
participate in a registration pursuant to this Section 1.1) to include Registrable
Securities in such Shelf Registration Statement. Notwithstanding anything to the contrary
herein,

     (i) upon any Shelf Registration Statement having been declared effective, the
Company shall use reasonable best efforts to keep such Shelf Registration Statement
continuously effective in order to permit the prospectus included therein to be
usable by the holders of Registrable Securities until the earlier of (x)
such time as all Registrable Securities that could be sold under such Shelf
Registration Statement have been sold or are no longer outstanding; (y) two
years from the date of effectiveness; and (z) the date that OTPP can sell
all Registrable Securities held by it in accordance with Rule 144(k) under the
Securities Act;

     (ii) if at any time following the effectiveness of any Shelf Registration
Statement, OTPP desires to sell Registrable Securities pursuant thereto, such
holder shall notify the Company of such intent at least ten Business Days prior to
any such sale (any such proposed transaction, a “Take-Down Transaction”),
and the Company thereupon shall prepare and file within ten Business Days after
receipt of such notice a prospectus supplement or post-effective amendment to the
Shelf Registration Statement, as necessary, to permit the consummation of such
Take-Down Transaction;

     (iii) upon receipt of notice from OTPP regarding a Take-Down Transaction as
provided in clause (ii) of this Section 1.1(b), the Company shall immediately
deliver notice to any other holders of Registrable Securities whose Registrable
Securities have been included in such Shelf

2

 

Registration Statement and shall permit such holders to participate in such
Take-Down Transaction (subject to Section 1.4), it being understood, for the
avoidance of doubt, that no holder other than OTPP shall have the right to initiate
a Take-Down Transaction; and

     (iv) each holder who participates in a Take-Down Transaction shall be deemed
through such participation to have represented to the Company that any information
previously supplied by such holder to the Company in writing for inclusion in the
Shelf Registration Statement, unless modified by such holder by written notice to
the Company, remains accurate as of the date of the prospectus supplement or
amendment to the Shelf Registration Statement, as applicable.

     1.2 Registration Statement Form. A registration requested pursuant to Section 1.1
shall be effected by the filing of a registration statement on a form agreed to by OTPP.

     1.3 Expenses. The Company shall pay, and shall be responsible for, all Registration
Expenses in connection with any registration requested under Section 1.1; provided that
each seller of Registrable Securities shall pay (a) all Registration Expenses to the extent
required to be paid by such seller under applicable law and (b) its pro rata share (based
on the number of Registrable Securities included in such offering) of all underwriting discounts
and commissions and transfer taxes, if any.

     1.4 Priority in Demand Registrations. If a registration pursuant to Section 1.1
(including any Take-Down Transaction) involves an underwritten offering, and the managing
underwriter (or, in the case of an offering which is not underwritten, a nationally recognized
investment banking firm) shall advise the Company in writing (with a copy to each Person requesting
registration of Registrable Securities) that, in its opinion, the number of securities requested,
and otherwise proposed to be included in such registration, exceeds the number which can be sold in
such offering without materially and adversely affecting the offering price, the Company shall
include in such registration, to the extent of the number which the Company is so advised can be
sold in such offering without such material adverse effect, first, the Registrable
Securities of the Stockholders, on a pro rata basis (based on the number of shares of Registrable
Securities owned by each such Stockholder), and second, the securities, if any, being sold
by the Company. Notwithstanding the foregoing, the Management Stockholders shall not be entitled
to participate in any such registration requested by OTPP (including any Take-Down Transaction) to
the extent that the managing underwriter (or, in the case of an offering that is not underwritten,
a nationally recognized investment banking firm) shall determine in good faith and in writing (with
a copy to each affected Person requesting registration of Registrable Securities), that the
participation of management would materially and adversely affect the marketability or offering
price of the securities being

3

 

sold in such registration, it being understood that the Company shall include in such
registration that number of shares of the Management Stockholders which can be sold in such
offering without materially and adversely affecting the marketability or offering price of the
other securities to be sold in such registration. In the event of any such determination under
this Section 1.4, the Company shall give the affected holders of Registrable Securities notice of
such determination in lieu of the notice otherwise required under Section 1.1.

     1.5 Right to Withdraw. OTPP shall have the right to withdraw its request to effect
registration of Registrable Securities owned by OTPP and any Management Stockholder shall have the
right to withdraw its request for inclusion of Registrable Securities in any registration statement
pursuant to Section 1.1 at any time prior to the effective date of such registration statement by
giving written notice to the Company of its request to withdraw. Upon receipt of notices from OTPP
and all Management Stockholders that have requested inclusion of Registrable Securities to such
effect, the Company shall cease all efforts to obtain effectiveness of the applicable registration
statement.

     2. Incidental Registrations. If the Company at any time proposes to register any of
its equity securities under the Securities Act for its own account (including, but not limited to,
a shelf registration statement on Form S-3, but other than pursuant to a registration on Form S-4
or S-8 or any successor form, then the Company shall give prompt written notice (but in no event
less than 20 days prior to the initial filing with respect thereto) to all holders of Registrable
Securities regarding such proposed registration. Upon the written request of any such holder made
within 20 days after the receipt of any such notice (which request shall specify the number of
Registrable Securities intended to be disposed of by such holder and the intended method or methods
of disposition thereof), the Company shall use its best efforts to effect the registration under
the Securities Act of such Registrable Securities on a pro rata basis in accordance with such
intended method or methods of disposition; provided that:

     (a) (i) the Company shall not include Registrable Securities in such proposed
registration to the extent that the Board shall have determined, after consultation with
the managing underwriter for such offering, that it would materially and adversely affect
the offering price to include any Registrable Securities in such registration and
(ii) the Company shall not include Registrable Securities of any Management
Stockholder in any proposed registration pursuant to this Section 2 to the extent that the
managing underwriter (or, in the case of an offering that is not underwritten, a nationally
recognized investment banker) shall determine in good faith that the participation of such
Management Stockholder would materially and adversely affect the marketability or the
offering price of the securities being sold in such registration; and provided,
further, that in the event of any such determination under clause (i) or (ii), the
Company shall give the

4

 

affected holders of Registrable Securities notice of such determination in lieu of the
notice otherwise required by the first sentence of this Section 2;

     (b) if, at any time after giving written notice (pursuant to this Section 2) of its
intention to register equity securities and prior to the effective date of the registration
statement filed in connection with such registration, the Company shall determine for any
reason not to register such equity securities, the Company may, at its election, give
written notice of such determination to each holder of Registrable Securities and,
thereupon, shall not be obligated to register any Registrable Securities in connection with
such registration (but shall nevertheless pay the Registration Expenses in connection
therewith), without prejudice, however, to the rights of OTPP that a registration be
effected under Section 1.1; and

     (c) if in connection with a registration pursuant to this Section 2, the managing
underwriter of such registration (or, in the case of an offering that is not underwritten,
a nationally recognized investment banking firm) shall advise the Company in writing (with
a copy to each holder of Registrable Securities requesting registration thereof) that the
number of securities requested and otherwise proposed to be included in such registration
exceeds the number which can be sold in such offering without materially and adversely
affecting the offering price of the securities being sold in such registration, then in the
case of any registration pursuant to this Section 2, the Company shall include in such
registration to the extent of the number which the Company is so advised can be sold in
such offering without such material adverse effect, of first, the securities, if
any, being sold by the Company, and second, the Registrable Securities of the
Stockholders, on a pro rata basis (based on the number of shares of Registrable Securities
owned by each such Stockholder).

          The Company shall pay all Registration Expenses in connection with each registration of
Registrable Securities requested pursuant to this Section 2; provided that each seller of
Registrable Securities shall pay (a) all Registration Expenses to the extent required to be paid by
such seller under applicable law and (b) its pro rata share (based on the number of Registrable
Securities included in such offering) of all underwriting discounts and commissions and transfer
taxes, if any. No registration effected under this Section 2 shall relieve the Company from its
obligation to effect registrations under Section 1.1.

     3. Registration Procedures. Subject to Section 1.1(b), if and whenever the Company is
required to use its best efforts to effect the registration of any Registrable Securities under the
Securities Act pursuant to Sections 1.1 or 2, the Company shall promptly:

5

 

     (a) prepare, and as soon as practicable, but in any event within 60 days thereafter,
file with the Commission, a registration statement with respect to such Registrable
Securities, make all required filings with the NASD and use its best efforts to cause such
registration statement to become and remain effective as soon as practicable;

     (b) prepare and promptly file with the Commission such amendments and post-effective
amendments and supplements to such registration statement and the prospectus used in
connection therewith as may be necessary to keep such registration statement effective for
so long as is required to comply with the provisions of the Securities Act and to complete
the disposition of all securities covered by such registration statement in accordance with
the intended method or methods of disposition thereof, but (other than in the case of a
Shelf Registration Statement) in no event for a period of more than six months after such
registration statement becomes effective;

     (c) furnish copies of all documents proposed to be filed with the Commission in
connection with such registration to (i) counsel selected by OTPP, and which
counsel may also be counsel to the Company, and (ii) each seller of Registrable
Securities (and, if so requested by any such seller, counsel to such seller) (or in the
case of the initial filing of a registration statement, within five Business Days of such
initial filing) and such documents shall be subject to the review of such counsel (which
shall be reasonably prompt); provided that the Company shall not file any
registration statement or any amendment or post-effective amendment or supplement to such
registration statement or the prospectus used in connection therewith to which such counsel
shall have reasonably objected on the grounds that such registration statement amendment,
supplement or prospectus does not comply (explaining why) in all material respects with the
requirements of the Securities Act or of the rules or regulations thereunder;

     (d) furnish to each seller of Registrable Securities, without charge, such number of
conformed copies of such registration statement and of each such amendment and supplement
thereto (in each case including all exhibits and documents filed therewith) and such number
of copies of the prospectus included in such registration statement (including each
preliminary prospectus and any summary prospectus) and any other prospectus filed under
Rule 424 under the Securities Act, in conformity with the requirements of the Securities
Act, and such other documents, as such seller may reasonably request in order to facilitate
the disposition of the Registrable Securities owned by such seller in accordance with the
intended method or methods of disposition thereof;

6

 

     (e) use its best efforts to register or qualify such Registrable Securities covered by
such registration statement under the securities or blue sky laws of such jurisdictions as
each seller shall reasonably request, and do any and all other acts and things which may be
necessary or advisable to enable such seller to consummate the disposition of such
Registrable Securities in such jurisdictions in accordance with the intended method or
methods of disposition thereof; provided that the Company shall not for any such
purpose be required to qualify generally to do business as a foreign corporation in any
jurisdiction wherein it is not so qualified, subject itself to taxation in any jurisdiction
wherein it is not so subject, or take any action which would subject it to general service
of process in any jurisdiction wherein it is not so subject;

     (f) use its best efforts to cause all Registrable Securities covered by such
registration statement to be registered with or approved by such other governmental
agencies, authorities or self-regulatory bodies as may be necessary by virtue of the
business and operations of the Company to enable the seller or sellers thereof to
consummate the disposition of such Registrable Securities in accordance with the intended
method or methods of disposition thereof;

     (g) in any underwritten offering, furnish to OTPP:

     (i) an opinion of counsel for the Company experienced in securities law
matters, dated the effective date of the registration statement (and, if such
registration includes an underwritten public offering, the date of the closing
under the underwriting agreement), and

     (ii) a “comfort” letter (unless the registration is pursuant to Section 2 and
such a letter is not otherwise being furnished to the Company), dated the effective
date of such registration statement (and if such registration includes an
underwritten public offering, dated the date of the closing under the underwriting
agreement), signed by the independent public accountants who have issued an audit
report on the Company’s financial statements included in the registration
statement,

covering such matters as are customarily covered in opinions of counsel and in accountants’
letters delivered to the underwriters in underwritten public offerings of securities and
such other matters as OTPP may reasonably request;

     (h) promptly notify each seller of any Registrable Securities covered by such
registration statement at any time when a prospectus relating thereto is required to be
delivered under the Securities Act of the happening of any event or existence of any fact
as a result of which the prospectus included in such registration statement, as then in
effect, includes an untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to

7

 

make the statements therein not misleading in light of the circumstances then
existing, (i) in the case of a Shelf Registration Statement, if a Stockholder has
provided notice of an intent to sell, within five Business Days of such notice and
(ii) in the case of any other registration statement hereunder, as promptly as is
practicable but in any event, no later than 30 days after such notice (except in the case
of clause (i) or (ii) to the extent the Company delivers a Material Event Notice, in which
case such period may be up to 60 days but shall end upon public disclosure of the material
transaction which necessitated such Material Event Notice), prepare and furnish to such
seller a reasonable number of copies of a supplement to or an amendment of such prospectus
as may be necessary so that, as thereafter delivered to the purchasers of such securities,
such prospectus shall not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing;

     (i) otherwise comply with all applicable rules and regulations of the Commission, and
make available to its security holders, as soon as reasonably practicable and in any event
within 16 months after the effective date of the registration statement, an earnings
statement of the Company (in form complying with the provisions of Rule 158 under the
Securities Act) covering the period of at least 12 months, but not more than 18 months,
beginning with the first month after the effective date of such registration statement;

     (j) notify each seller of any Registrable Securities covered by such registration
statement (i) when the prospectus or any prospectus supplement or post-effective
amendment has been filed, and, with respect to such registration statement or any
post-effective amendment, when the same has become effective, (ii) of the receipt
by the Company of any comments from the Commission or of any request by the Commission for
amendments or supplements to such registration statement or to amend or to supplement such
prospectus or for additional information, (iii) of the issuance by the Commission
of any stop order suspending the effectiveness of such registration statement or the
initiation of any proceedings for that purpose and (iv) of the suspension of the
qualification of such securities for offering or sale in any jurisdiction, or of the
institution of any proceedings for any of such purposes;

     (k) use every reasonable effort to obtain the lifting of any stop order that might be
issued suspending the effectiveness of such registration statement at the earliest possible
moment;

     (l) use its best efforts (i) (A) to list such Registrable Securities
on any securities exchange on which the equity securities of the Company are then listed
or, if no such equity securities are then listed, on an exchange selected by the

8

 

Company, if such listing is then permitted under the rules of such exchange, or
(B) if such listing is not practicable, to secure designation of such securities as
a NASDAQ “national market system security” within the meaning of Rule 11Aa2-1 under the
Exchange Act or, failing that, to secure NASDAQ authorization for such Registrable
Securities, and, without limiting the foregoing, to arrange for at least two market makers
to register as such with respect to such Registrable Securities with the NASD, and
(ii) to provide an independent transfer agent and registrar for such Registrable
Securities not later than the effective date of such registration statement and to instruct
such transfer agent (A) to release any stop transfer order with respect to the
certificates with respect to the Registrable Securities being sold and (B) to
furnish certificates without restrictive legends representing ownership of the shares being
sold, in such denominations requested by the sellers of the Registrable Securities or the
lead underwriter;

     (m) enter into such agreements and take such other actions as the sellers of
Registrable Securities or the underwriters reasonably request in order to expedite or
facilitate the disposition of such Registrable Securities, including, without limitation,
preparing for, and participating in, such number of “road shows” and all such other
customary selling efforts as the underwriters reasonably request in order to expedite or
facilitate such disposition;

     (n) furnish to any holder of such Registrable Securities on a confidential basis such
information and assistance as such holder may reasonably request in connection with any
“due diligence” effort which such seller deems appropriate;

     (o) cooperate with each seller of Registrable Securities and each underwriter and
their respective counsel in connection with any filings required to be made with the NASD,
New York Stock Exchange, or any other securities exchange on which such Registrable
Securities are traded or will be traded;

     (p) cooperate with the sellers of the Registrable Securities and the managing
underwriter to facilitate the timely preparation and delivery of certificates not bearing
any restrictive legends representing the Registrable Securities to be sold, and cause such
Registrable Securities to be issued in such denominations and registered in such names in
accordance with the underwriting agreement prior to any sale of Registrable Securities to
the underwriters or, if not an underwritten offering, in accordance with the instructions
of each seller of Registrable Securities at least five business days prior to any sale of
Registrable Securities and instruct any transfer agent and registrar of Registrable
Securities to release any stop transfer orders in respect thereof;

     (q) cause its officers and employees to participate in, and to otherwise facilitate
and cooperate with the preparation of the registration statement and

9

 

prospectus and any amendments or supplements thereto (including participating in
meetings, drafting sessions and due diligence sessions) taking into account the Company’s
business needs; and

     (r) use its best efforts to take all other steps necessary to effect the registration
of such Registrable Securities contemplated hereby.

          As a condition to its registration of Registrable Securities of any prospective seller, the
Company may require such seller of any Registrable Securities as to which any registration is being
effected to execute powers-of-attorney, custody arrangements and other customary agreements
appropriate to facilitate the offering and to furnish to the Company such information regarding
such seller, its ownership of Registrable Securities and the disposition of such Registrable
Securities as the Company may from time to time reasonably request in writing and as shall be
required by law in connection therewith. Each such holder agrees to furnish promptly to the
Company all information required to be disclosed in order to make the information previously
furnished to the Company by such holder not materially misleading.

          The Company agrees not to file or make any amendment to any registration statement with
respect to any Registrable Securities, or any amendment of or supplement to the prospectus used in
connection therewith, which refers to any holder of Registrable Securities, or otherwise identifies
any holder of Registrable Securities as the holder of any Registrable Securities, without the
consent of such holder, such consent not to be unreasonably withheld or delayed, unless such
disclosure is required by law, in which case the Company will provide written notice to such holder
no less than five days prior to such amendment of or supplement to the prospectus.

          By acquisition of Registrable Securities, each holder of such Registrable Securities shall be
deemed to have agreed that upon receipt of any notice from the Company of the happening of any
event of the kind described in Section 3(h), such holder will promptly discontinue such holder’s
disposition of Registrable Securities pursuant to the registration statement covering such
Registrable Securities until such holder’s receipt of the copies of the supplemented or amended
prospectus contemplated by Section 3(h). If so directed by the Company, each holder of Registrable
Securities will deliver to the Company (at the Company’s expense) all copies, other than permanent
file copies, in such holder’s possession of the prospectus covering such Registrable Securities at
the time of receipt of such notice. In the event that the Company shall give any such notice, the
period mentioned in Section 3(a) shall be extended by the number of days during the period from and
including the date of the giving of such notice to and including the date when each seller of any
Registrable Securities covered by such registration statement shall have received the copies of the
supplemented or amended prospectus contemplated by Section 3(h).

10

 

     4. Underwritten Offerings.

     4.1 Underwriting Agreement. If requested by the underwriters for any underwritten
offering pursuant to a registration requested under Section 1.1 or 2 (including any Take-Down
Transaction), the Company shall enter into an underwriting agreement with the underwriters for such
offering, such agreement to be reasonably satisfactory in substance and form to the underwriters
and to OTPP. Any such underwriting agreement shall contain such representations and warranties by
the Company and such other terms and provisions as are customarily contained in agreements of this
type, including, without limitation, indemnities to the effect and to the extent provided in
Section 8. Each holder of Registrable Securities to be distributed by such underwriter who owns
10% of more of the Common Stock of the Company (computed on a fully diluted basis) at the time of
such offering and any other holders of Registrable Securities requested by such underwriter shall
be a party to such underwriting agreement and may, at such holder’s option, require that any or all
of the representations and warranties by, and the agreements on the part of, the Company to and for
the benefit of such underwriters be made to and for the benefit of such holder of Registrable
Securities and that any or all of the conditions precedent to the obligations of such underwriters
under such underwriting agreement shall also be conditions precedent to the obligations of such
holder of Registrable Securities. No Stockholder in its capacity as stockholder and/or controlling
person (but not in his or her capacity as a director or officer of the Company, if applicable)
shall be required by any underwriting agreement to make any representations or warranties to or
agreements with the Company or the underwriters other than representations, warranties or
agreements regarding such holder, the ownership of such holder’s Registrable Securities and such
holder’s intended method or methods of disposition and any other representation required by law or
to furnish any indemnity to any Person which is broader than the indemnity furnished by such holder
pursuant to Section 8.2.

     4.2 Selection of Underwriters. If the Company at any time proposes to register any of
its securities under the Securities Act for sale for its own account pursuant to an underwritten
offering, the Company will have the right to select the managing underwriter (which shall be of
nationally recognized standing) to administer the offering, with the consent of OTPP, such consent
not to be unreasonably withheld. Notwithstanding the foregoing sentence, whenever a registration
requested pursuant to Section 1.1 is for an underwritten offering, OTPP will have the right to
select the managing underwriter (which shall be of nationally recognized standing) to administer
the offering, but only with the approval of the Company, such approval not to be unreasonably
withheld.

11

 

     5. Holdback Agreements.

     (a) If and whenever the Company proposes to register any of its equity securities
under the Securities Act for its own account (other than pursuant to (i) a
registration on Form S-4 or S-8 or any successor form or (ii) a registration of
securities which are a combination of debt and equity) or is required to use its best
efforts to effect the registration of any Registrable Securities under the Securities Act
pursuant to Section 1.1 or 2, each holder of Registrable Securities agrees by acquisition
of such Registrable Securities not to effect any offer, sale or distribution, including any
sale pursuant to Rule 144 under the Securities Act, or to request registration under
Section 1.1 of any Registrable Securities within seven days prior to the reasonably
expected effective date of the contemplated registration statement and during the period
beginning on the effective date of the registration statement relating to such registration
(the “Trigger Date”) and until 90 days (unless advised by the managing underwriter
that a longer period, not to exceed 180 days, is required, or such shorter period as the
managing underwriter for any underwritten offering may agree) after the Trigger Date,
except as part of such registration or unless, in the case of a sale or distribution not
involving a public offering, the transferee agrees in writing to be subject to this Section
5, even if such Registrable Securities cease to be Registrable Securities upon such
transfer; provided that, with respect to any Shelf Registration Statement, the
Trigger Date shall be the pricing of any offering made under such registration statement.
If requested by such managing underwriter, each holder of Registrable Securities agrees to
execute an agreement to such effect with the Company and consistent with such managing
underwriter’s customary form of holdback agreement.

     (b) The Company agrees not to effect any public offer, sale or distribution of its
equity securities or securities convertible into or exchangeable or exercisable for any of
such securities within seven days prior to the reasonably expected effective date of the
contemplated registration statement and during the period beginning on the Trigger Date and
until 90 days (or such longer period, not to exceed 180 days, which may be required by the
managing underwriter, or such shorter period as the managing underwriter may agree) after
the Trigger Date with respect to any registration statement filed pursuant to Section 1.1
(except (i) as part of such registration, (ii) as permitted by any related
underwriting agreement, (iii) pursuant to an employee equity compensation plan,
(iv) pursuant to an acquisition or strategic relationship, bank or equipment
financing or similar transaction, (v) pursuant to a registration on Form S-4 or S-8
or any successor form and (vi) pursuant to a registration of securities which are a
combination of debt and equity; provided that, with respect to any Shelf
Registration Statement, the Trigger Date shall be the pricing of any offering made under
such registration statement. In addition, if, and to the extent requested by the managing

12

 

underwriter, the Company shall use its best efforts to cause each holder (other than
any holder already subject to Section 5(a)) of its equity securities or any securities
convertible into or exchangeable or exercisable for any of such securities, whether
outstanding on the date of this Agreement or issued at any time after the date of this
Agreement (other than any such securities acquired in a public offering), to agree not to
effect any such public sale or distribution of such securities during such period, except
as part of any such registration if permitted, and to cause each such holder to enter into
an agreement to such effect with the Company and consistent with such managing
underwriter’s customary form of holdback agreement.

     6. Preparation; Reasonable Investigation. In connection with the preparation and
filing of each registration statement registering Registrable Securities under the Securities Act,
the Company shall give counsel referred to in clause (c) of Section 3 the opportunity to
participate in the preparation of such registration statement, each prospectus included therein or
filed with the Commission, and each amendment thereof or supplement thereto, and shall give such
counsel access to the financial and other records, pertinent corporate documents and properties of
the Company and its subsidiaries and opportunities to discuss the business of the Company with its
officers and the independent public accountants who have issued audit reports on its financial
statements in each case as shall be reasonably requested by such counsel in connection with such
registration statement.

     7. No Grant of Future Registration Rights. The Company shall not grant any other
demand or incidental registration rights to any other Person without the prior written consent of
OTPP.

     8. Indemnification.

     8.1 Indemnification by the Company. In the event of any registration of any
Registrable Securities pursuant to this Agreement, the Company shall indemnify, defend and hold
harmless (a) each seller of such Registrable Securities, (b) the directors,
members, stockholders, officers, partners, employees, agents and Affiliates of such seller,
(c) each Person who participates as an underwriter in the offering or sale of such
securities and (d) each person, if any, who controls (within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act) any of the foregoing (“Controlling
Persons”) against any and all losses, claims, damages or liabilities (or actions or proceedings
in respect thereof), jointly or severally, directly or indirectly, based upon or arising out of
(i) any untrue statement or alleged untrue statement of a material fact contained in any
registration statement under which such Registrable Securities were registered under the Securities
Act, any preliminary prospectus, final prospectus or summary prospectus contained therein or used
in connection with the offering of securities covered thereby, or any amendment or supplement
thereto, or (ii) any omission

13

 

or alleged omission to state a material fact required to be stated therein or necessary to
make the statements therein not misleading; and the Company will reimburse each such indemnified
party for any legal or any other expenses reasonably incurred by them in connection with enforcing
its rights hereunder or under the underwriting agreement entered into in connection with such
offering or investigating, preparing, pursuing or defending any such loss, claim, damage,
liability, action or proceeding, except insofar as any such loss, claim, damage, liability, action,
proceeding or expense arises out of or is based upon an untrue statement of a material fact or
omission of a material fact made in such registration statement, any such preliminary prospectus,
final prospectus, summary prospectus, amendment or supplement in reliance upon and in conformity
with written information furnished to the Company by such seller or any of its Controlling Persons
expressly for use in the preparation thereof in accordance with the second sentence of Section 8.2.
Such indemnity shall remain in full force and effect, regardless of any investigation made by such
indemnified party and shall survive the transfer of such Registrable Securities by such seller. If
the Company is entitled to, and does, assume the defense of the related action or proceedings
provided herein, then the indemnity agreement contained in this Section 8.1 shall not apply to
amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such
settlement is effected without the consent of the Company (which consent shall not be unreasonably
withheld or delayed).

     8.2 Indemnification by the Sellers. It shall be a condition to including any
Registrable Securities in any registration statement filed pursuant to Section 1.1, or 2 (including
any Take-Down Transaction) that the Company shall have received an undertaking satisfactory to it
from each of the prospective sellers of such Registrable Securities to indemnify and hold harmless,
severally, not jointly, in the same manner and to the same extent as set forth in Section 8.1, the
Company, its directors, officers, employees, agents and each person, if any, who controls (within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company,
with respect to any statement of a material fact or alleged statement of a material fact in or
omission of a material fact or alleged omission from such registration statement, any preliminary
prospectus, final prospectus or summary prospectus contained therein, or any amendment or
supplement thereto, but only to the extent such statement or alleged statement or such omission or
alleged omission was made in reliance upon and in conformity with written information furnished to
the Company by such seller expressly for use in the preparation of such registration statement,
preliminary prospectus, final prospectus, summary prospectus, amendment or supplement. The Company
and the holders of the Registrable Securities in their capacities as stockholders and/or
controlling persons (but not in their capacities as managers of the Company) hereby acknowledge and
agree that, unless otherwise expressly agreed to in writing by such holders, the only information
furnished or to be furnished to the Company for use in any registration statement or prospectus
relating to the Registrable Securities or in any amendment, supplement or preliminary materials
associated therewith are statements specifically

14

 

relating to (a) transactions between such holder and its Affiliates, on the one hand,
and the Company and/or its subsidiaries, on the other hand, (b) the beneficial ownership of
shares of Common Stock by such holder and its Affiliates and (c) the name and address of
such holder. If any additional information about such holder or the plan of distribution (other
than for an underwritten offering) is required by law to be disclosed in any such document, then
such holder shall not unreasonably withhold its agreement referred to in the immediately preceding
sentence of this Section 8.2. Such indemnity shall remain in full force and effect, regardless of
any investigation made by or on behalf of the Company or any such director, officer or controlling
person and shall survive the transfer of such Registrable Securities by such seller. The indemnity
agreement contained in this Section 8.2 shall not apply to amounts paid in settlement of any such
loss, claim, damage, liability, action or proceeding if such settlement is effected without the
consent of such seller (which consent shall not be unreasonably withheld or delayed). The
indemnity provided by each seller of Registrable Securities under this Section 8.2 shall be limited
in amount to the net amount of proceeds (i.e., net of expenses, underwriting discounts and
commissions) actually received by such seller from the sale of Registrable Securities pursuant to
such registration statement.

     8.3 Notices of Claims, etc. Promptly after receipt by an indemnified party of notice
of the commencement of any action or proceeding involving a claim referred to in the preceding
paragraphs of this Section 8, such indemnified party shall, if a claim in respect thereof is to be
made against an indemnifying party, give written notice to the indemnifying party of the
commencement of such action or proceeding; provided that the failure of any indemnified
party to give notice as provided herein shall not relieve the indemnifying party of its obligations
under the preceding paragraphs of this Section 8, except to the extent that the indemnifying party
is materially prejudiced by such failure to give notice. In case any such action is brought
against an indemnified party, the indemnifying party shall be entitled to participate therein and
to assume the defense thereof, jointly with any other indemnifying party similarly notified, to the
extent that it may wish, with counsel reasonably satisfactory to such indemnified party, and after
notice from the indemnifying party to such indemnified party of its election so to assume the
defense thereof, the indemnifying party will not be liable to such indemnified party for any legal
or other expenses subsequently incurred by the latter in connection with the defense thereof except
for the reasonable fees and expenses of any counsel retained by such indemnified party to monitor
such action or proceeding. Notwithstanding the foregoing, if such indemnified party reasonably
determines, based upon advice of independent counsel, that a conflict of interest may exist between
the indemnified party and the indemnifying party with respect to such action and that it is
advisable for such indemnified party to be represented by separate counsel, such indemnified party
may retain other counsel, reasonably satisfactory to the indemnifying party, to represent such
indemnified party, and the indemnifying party shall pay all reasonable fees and expenses of such
counsel. No indemnifying party, in the defense of any such claim or litigation, shall, except with
the consent of such indemnified party, which consent shall not be

15

 

unreasonably withheld, consent to entry of any judgment or enter into any settlement unless
such judgment, compromise or settlement (i) includes as an unconditional term thereof the
giving by the claimant or plaintiff to such indemnified party of a release from all liability in
respect of such claim or litigation, (ii) does not include a statement as to or an
admission of fault, culpability or a failure to act, by or on behalf of any indemnified party and
(iii) does not require any action other than the payment of money by the indemnifying
party.

     8.4 Other Indemnification. Indemnification similar to that specified in the preceding
paragraphs of this Section 8 (with appropriate modifications) shall be given by the Company and
each seller of Registrable Securities with respect to any required registration (other than under
the Securities Act) or other qualification of such Registrable Securities under any federal or
state law or regulation of any governmental authority.

     8.5 Indemnification Payments. Any indemnification required to be made by an
indemnifying party pursuant to this Section 8 shall be made by periodic payments to the indemnified
party during the course of the action or proceeding, as and when bills are received by such
indemnifying party with respect to an indemnifiable loss, claim, damage, liability or expense
incurred by such indemnified party.

     8.6 Other Remedies. If for any reason any indemnification specified in the preceding
paragraphs of this Section 8 is unavailable, or is insufficient to hold harmless an indemnified
party, other than by reason of the exceptions provided therein, then the indemnifying party shall
contribute to the amount paid or payable by the indemnified party as a result of such losses,
claims, damages, liabilities, actions, proceedings or expenses in such proportion as is appropriate
to reflect the relative benefits to and faults of the indemnifying party on the one hand and the
indemnified party on the other (taking into account the portion of the proceeds of the offering
realized by such party) and the statements or omissions or alleged statements or omissions which
resulted in such loss, claim, damage, liability, action, proceeding or expense, as well as any
other relevant equitable considerations. The relative fault of the indemnifying party and of the
indemnified party shall be determined by reference to, among other things, whether the untrue
statement of a material fact or the omission to state a material fact relates to information
supplied by the indemnifying party or by the indemnified party and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statements or
omissions. The parties hereto agree that it would not be just and equitable if contributions
pursuant to this Section 8.6 were to be determined by pro rata allocation or by any other method of
allocation which does not take into account the equitable considerations referred to in the
preceding sentence of this Section 8.6. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation. Notwithstanding the other
provisions of this

16

 

Section 8, in respect of any claim for indemnification pursuant to this Section 8, no
indemnifying party (other than the Company) shall be required to contribute pursuant to this
Section 8.6 any amount in excess of (a) the net proceeds (i.e., net of expenses,
underwriting discounts and commissions) received and retained by such indemnifying party from the
sale of its Registrable Securities covered by the applicable registration statement, preliminary
prospectus, final prospectus, or supplement or amendment thereto, filed pursuant hereto, deducting
therefrom, in the case of the Management Stockholders, the price paid by the Management
Stockholders to acquire the equity securities of the Company pursuant to the exercise of options,
minus (b) any amounts previously paid by such indemnifying party pursuant to this
Section 8 in respect of such claim. No party shall be liable for contribution under this Section
8.6 except to the extent and under such circumstances as such party would have been liable for
indemnification under this Section 8 if such indemnification were enforceable under applicable law.

     9. Representations and Warranties. Each Stockholder represents and warrants to the
Company and each other Stockholder that:

     (a) such Stockholder has the power, authority and capacity (or, in the case of any
Stockholder that is a corporation, limited liability company or limited partnership, all
corporate, limited liability company or limited partnership power and authority, as the
case may be) to execute, deliver and perform this Agreement;

     (b) in the case of a Stockholder that is a corporation, limited liability company or
limited partnership, the execution, delivery and performance of this Agreement by such
Stockholder has been duly and validly authorized and approved by all necessary corporate,
limited liability company or limited partnership action, as the case may be;

     (c) this Agreement has been duly and validly executed and delivered by such
Stockholder and constitutes a valid and legally binding obligation of such Stockholder,
enforceable in accordance with its terms, subject to bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting or relating to creditors’ rights
generally and general principles of equity; and

     (d) the execution, delivery and performance of this Agreement by such Stockholder does
not and will not violate the terms of or result in the acceleration of any obligation under
(i) any material contract, commitment or other material instrument to which such
Stockholder is a party or by which such Stockholder is bound or (ii) in the case of
a Stockholder that is a corporation, limited liability company or limited partnership, the
certificate of incorporation, certificate of formation, certificate of limited partnership,
by-laws, limited liability company agreement or limited partnership agreement, as the case
may be.

17

 

     10. Definitions. For purposes of this Agreement, the following terms shall have the
following respective meanings:

          Affiliate: a Person that directly, or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, the Person specified.

          Board: the board of directors of the Company.

          Business Day: means any day on which banks are not required or authorized to close in
the City of New York.

          Commission: the Securities and Exchange Commission.

          Common Stock: the Class A Common Stock of the Company, par value $.01 per share, or
any other securities of the Company or any other Person issued with respect to such Class A Common
Stock by way of a conversion, exchange, replacement, stock dividend or stock split or other
distribution in connection with a combination of shares, conversion exchange, replacement,
recapitalization, merger, consolidation or other reorganization or otherwise.

          Deferred Share Agreements: the Deferred Share Agreements, dated of even date
herewith, between the Company and the other parties thereto.

          Exchange Act: the Securities Exchange Act of 1934, as amended, or any successor
federal statute, and the rules and regulations thereunder which shall be in effect at the time.

          Exchange Agreements: the Exchange Agreements of even date herewith by and between the
Company and each of the Management Stockholders who are a party to such Exchange Agreements, as the
same may be amended, modified, supplemented or restated from time to time.

          IPO: an underwritten initial public offering of Common Stock having an aggregate
offering value (measured by the Company’s proceeds before underwriters’ discounts and selling
commissions) of at least $150 million and after which an established trading market exists for the
Common Stock.

          Material Event Notice: a certificate signed by an authorized officer of the Company
stating that the Company has pending or in process, as of the date of such certificate, a material
transaction (including, but not limited to, a financing transaction), the disclosure of which
would, in the good faith judgment of the Board, materially and adversely affect the Company.

18

 

          Merger Agreement: the Agreement and Plan of Merger, dated as of August 28, 2005, by
and among DPC Newco Inc., the Company and Doane Pet Care Company, as the same may be amended
modified, supplemented or restated from time to time.

          NASD: National Association of Securities Dealers, Inc.

          NASDAQ: the Nasdaq National Market.

          Person: an individual, corporation, partnership, limited liability company, joint
venture, association, trust or other entity or organization, including a government or political
subdivision or an agency or instrumentality thereof.

          Registrable Securities: the shares of Common Stock beneficially owned (within the
meaning of Rule 13d-3 of the Exchange Act) by the Stockholders or the Permitted Transferees (as
such term is defined in Section 11.2), except for any shares of Common Stock
beneficially owned by a Management Stockholder that (x) were issued to such Management
Stockholder pursuant to an effective registration statement under the Securities Act on Form S-8 or
(y) may be sold by such Management Stockholder pursuant to Rule 144(k) under the Securities
Act. As to any particular shares of Common Stock, such securities shall cease to be Registrable
Securities when (i) a registration statement with respect to the sale of such securities
shall have become effective under the Securities Act and such securities shall have been disposed
of in accordance with such registration statement, (ii) a registration statement on Form
S-8 with respect to the sale of such securities shall have become effective under the Securities
Act, (iii) they shall have been sold to the public pursuant to Rule 144 under the
Securities Act, (iv) they shall have been otherwise transferred other than to a Permitted
Transferee and subsequent disposition of them shall not require registration or qualification of
them under the Securities Act or any similar state law then in force or (v) they shall have
ceased to be outstanding. Any and all shares of Common Stock which may be issued in respect of, in
exchange for, or in substitution for any Registrable Securities, whether by reason of any stock
split, stock dividend, reverse stock split, recapitalization, combination, merger, consolidation or
otherwise, shall also be “Registrable Securities” hereunder.

          Registration Expenses: all fees and expenses incurred in connection with the
Company’s performance of or compliance with any registration pursuant to this Agreement, including,
without limitation, (i) registration, filing and applicable Commission and NASD fees,
(ii) fees and expenses of complying with securities or blue sky laws, (iii) fees
and expenses associated with listing securities on an exchange or NASDAQ, (iv) word
processing, duplicating and printing expenses, (v) messenger and delivery expenses,
(vi) transfer agents’, trustees’, depositories’, registrars’ and fiscal agents’ fees,
(vii) fees and disbursements of counsel for the Company and of its independent public
accountants, including the expenses of any special audits or “cold

19

 

comfort” letters required by, or incident to, such registration, (viii) reasonable
fees and disbursements of the counsel retained by the sellers of Registrable Securities, which
counsel shall be designated in the manner specified in Section 3(c), and (ix) any fees and
disbursements of underwriters customarily paid by issuers or sellers of securities, but excluding
underwriting discounts and commissions and transfer taxes, if any.

          Securities Act: the Securities Act of 1933, as amended, or any successor federal
statute, and the rules and regulations thereunder which shall be in effect at the time.

          Stock Subscription Agreements: the Subscription Agreements, dated of even date
herewith, between Newco and the other parties thereto.

          Stockholders Agreement: the Stockholders Agreement, dated as of the date hereof, as
the same may be amended from time to time, among the Company, OTPP, the Management Stockholders and
the other parties thereto.

          Subsidiary: any entity a majority of whose outstanding voting securities is owned,
directly or indirectly, by the Company.

     11. Miscellaneous.

     11.1 Rule 144, etc. If the Company shall have filed a registration statement pursuant
to the requirements of Section 12 of the Exchange Act or a registration statement pursuant to the
requirements of the Securities Act relating to any class of equity securities, the Company shall
file the reports required to be filed by it under the Securities Act and the Exchange Act and the
rules and regulations adopted by the Commission thereunder, and shall take such further action as
any holder of Registrable Securities may reasonably request, all to the extent required from time
to time to enable such holder to sell Registrable Securities without registration under the
Securities Act within the limitation of the exemptions provided by (a) Rule 144 under the
Securities Act, as such rule may be amended from time to time, or (b) any successor rule or
regulation hereafter adopted by the Commission. Upon the request of any holder of Registrable
Securities, the Company shall deliver to such holder a written statement as to whether it has
complied with such requirements.

     11.2 Successors, Assigns and Transferees. This Agreement shall be binding upon and
inure to the benefit of and enforceable by the parties hereto and their respective permitted
successors, personal representatives and assigns under this Section 11.2. The provisions of this
Agreement which are for the benefit of a holder of Registrable Securities shall be for the benefit
of and enforceable by any transferee of such Registrable Securities; provided that
(i) such transferee acquires such Registrable Securities in accordance with all of the
terms of the Stockholders Agreement and pursuant to an express assignment from the transferor, and
(ii) such transferee executes a joinder

20

 

agreement agreeing to be bound by all of the transferor’s obligations hereunder, including,
without limitation, Section 5 hereof, copies of which shall have been delivered to the Company
(each such transferee, a “Permitted Transferee”). Notwithstanding anything herein to the
contrary, the Management Stockholders must exercise all rights hereunder on behalf of any of their
Permitted Transferees and all other parties hereto shall be entitled to deal exclusively with the
Management Stockholders and rely on the consent, waiver or any other action by the Management
Stockholders as the consent, waiver or other action, as the case may be, of any such Permitted
Transferees of such Management Stockholders.

     11.3 Stock Splits, etc. Each holder of Registrable Securities agrees that it will
vote to effect a stock split, reverse stock split, recapitalization or combination with respect to
any Registrable Securities in connection with any registration of any Registrable Securities
hereunder, or otherwise, if (i) the managing underwriter shall advise the Company in
writing (or, in connection with an offering that is not underwritten, if an investment banker shall
advise the Company in writing) that in its opinion such a stock split, reverse stock split,
recapitalization or combination would facilitate or increase the likelihood of success of the
offering, and (ii) such stock split, reverse stock split, recapitalization or combination does not
impact the respective ownership percentages of each such holder of Registrable Securities in the
Company. The Company shall cooperate in all respects in effecting any such stock split, reverse
stock split, recapitalization or combination.

     11.4 Amendment and Modification. This Agreement may be amended, waived, modified or
supplemented by the Company with the written consent of OTPP, the Company and a majority (by number
of shares) of any other holders of Registrable Securities whose interests would be materially and
adversely affected by such amendment, modification or supplement or, to the extent (and only to the
extent) any particular holder of Registrable Securities would be uniquely and adversely affected by
a proposed amendment, modification or supplement, by such holder; provided that the
interests of any existing holders of Registrable Securities shall not be materially and adversely
affected by an amendment, modification or supplement of this Agreement that provides for, or has
the effect of providing for, an additional grant of demand registration rights or of incidental
registration rights with a lower or the same priority as the rights held by such existing holders
of Registrable Securities, as long as any such grant of demand registration rights or incidental
registration rights with the same priority are pari passu with those held by such existing holders
of Registrable Securities; provided, further, that, without limitation, the written
consent of OTPP only shall be required for an amendment to add an additional equity investor in the
Company with the same or inferior rights under this Agreement to the rights of OTPP. The Company
shall notify all Stockholders promptly after any such amendment, modification or supplement shall
have taken effect. Each holder of Registrable Securities shall be bound by any such amendment,
waiver, modification or supplement authorized in accordance with this

21

 

Section 11.4, whether or not such Registrable Securities shall have been marked to indicate
such amendment, waiver, modification or supplement. The waiver by any party hereto of a breach of
any provision of this Agreement shall not operate or be construed as a further or continuing waiver
of such breach or as a waiver of any other or subsequent breach, except as otherwise explicitly
provided for in such waiver. Except as otherwise expressly provided herein, no failure on the part
of any party to exercise, and no delay in exercising, any right, power or remedy hereunder, or
otherwise available in respect hereof at law or in equity, shall operate as a waiver thereof, nor
shall any single or partial exercise of such right, power or remedy by such party preclude any
other or further exercise thereof or the exercise of any other right, power or remedy.

     11.5 Additional Management Stockholders. Notwithstanding anything in this Agreement
to the contrary, the Company may, with the consent of OTPP (and only the consent of OTPP), admit
additional Management Stockholders to this Agreement and amend Schedule A accordingly;
provided that any such Management Stockholder has become a party to the Stockholders
Agreement and executes and delivers a joinder agreement to this Agreement and such other agreements
or documents as may reasonably be requested by the Company.

     11.6 Governing Law; Jurisdiction. This Agreement and the rights and obligations of
the parties hereunder and the Persons subject hereto shall be governed by, and construed and
interpreted in accordance with, the laws of the State of Delaware, without giving effect to the
choice of law principles thereof. By execution and delivery of this Agreement, each party hereto
irrevocably submits to the exclusive jurisdiction of (a) the Supreme Court of the State of
New York, New York County and (b) the United States District Court for the Southern
District of New York, for purposes of any claim, action or proceeding arising out of this Agreement
or any other transaction contemplated hereby. Each party hereto agrees to commence any such claim,
action or proceeding only in the United States District Court for the Southern District of New York
or, if such claim, action or proceeding cannot be brought in such court for jurisdictional reasons,
in the Supreme Court of the State of New York, New York County. Each of the parties hereby waives,
and agrees not to assert in any such dispute, to the fullest extent permitted by applicable Law,
any claim that (a) such party is not personally subject to the jurisdiction of such courts,
(b) such party and such party’s property is immune from any legal process issued by such
courts or (c) any claim, action or proceeding commenced in such courts is brought in an
inconvenient forum. Each party hereto further agrees that service of any process, summons, notice
or document by U.S. registered mail to such party’s address set forth in Section 11.8 shall be
effective service of process for any claim, action or proceeding with respect to any matters to
which it has submitted to jurisdiction in this Section 11.6 or otherwise.

     11.7 Invalidity of Provision. The invalidity or unenforceability of any provision of
this Agreement in any jurisdiction shall not affect the validity or

22

 

enforceability of the remainder of this Agreement in that jurisdiction or the validity or
enforceability of this Agreement, including that provision, in any other jurisdiction.

     11.8 Notices. All notices, requests, claims, demands, letters, waivers and other
communications permitted or required under this Agreement shall be in writing and shall be deemed
to be duly given if hand delivered to the persons set forth below or if sent by documented
overnight delivery service or registered or certified mail, postage prepaid, return receipt
requested, or by telegram, telex or telecopy, receipt acknowledged, addressed as set forth below or
to such other person or persons and/or at such other address or addresses as shall be furnished in
writing by any party hereto to the other parties hereto. Any such notice or communication shall be
deemed to have been given as of the date received, in the case of personal delivery, or on the date
shown on the receipt or confirmation therefor in all other cases:

	 	 	 	 	 
	 

	 	(i)
	 	If to the Company, to it at:
	 
	 	 	 	 
	 

	 	 	 	210 Westwood Place South, Suite 400
	 

	 	 	 	Brentwood, Tennessee 37027
	 

	 	 	 	Attention: Chief Executive Officer
	 

	 	 	 	Telephone: (615) 373-7774
	 

	 	 	 	Facsimile: (615) 309-1196
	 
	 	 	 	 
	 

	 	 	 	with copies (which shall not constitute notice) to:
	 
	 	 	 	 
	 

	 	 	 	Teachers’ Private Capital
	 

	 	 	 	Ontario Teachers’ Pension Plan Board
	 

	 	 	 	5650 Yonge Street
	 

	 	 	 	Toronto, Ontario M2M 4H5 Canada
	 

	 	 	 	Attention: Dean Metcalf
	 

	 	 	 	                     Michael Padfield, Esq.
	 

	 	 	 	Telephone: (416) 730-6166
	 

	 	 	 	Facsimile: (416) 730-5083
	 
	 	 	 	 
	 

	 	 	 	and Debevoise & Plimpton LLP at its address set forth in clause (iii) below.
	 
	 	 	 	 
	 

	 	(ii)
	 	If to a Management Stockholder, as provided on Schedule A.
	 
	 	 	 	 
	 

	 	(iii)
	 	If to OTPP, to it at:
	 
	 	 	 	 
	 

	 	 	 	c/o Teachers’ Private Capital
	 

	 	 	 	Ontario Teachers’ Pension Plan Board
	 

	 	 	 	5650 Yonge Street

23

 

	 	 	 	 	 
	 

	 	 	 	Toronto, Ontario M2M 4H5 Canada
	 

	 	 	 	Attention: Dean Metcalf
	 

	 	 	 	                     Michael Padfield, Esq.
	 

	 	 	 	Telephone: (416) 730-6166
	 

	 	 	 	Facsimile: (416) 730-5083
	 
	 	 	 	 
	 

	 	 	 	with a copy (which shall not constitute notice) to:
	 
	 	 	 	 
	 

	 	 	 	Debevoise & Plimpton LLP
	 

	 	 	 	919 Third Avenue
	 

	 	 	 	New York, New York 10022
	 

	 	 	 	Attention: Margaret A. Davenport, Esq.
	 

	 	 	 	Telephone: (212) 909-6000
	 

	 	 	 	Facsimile: (212) 909-6836

     11.9 Headings; Execution in Counterparts. The headings and captions contained herein
are for convenience of the parties only and shall not control or affect the meaning or construction
of any provision hereof. This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original and which together shall constitute one and the same
instrument.

     11.10 Injunctive Relief. Each of the parties recognizes and agrees that money damages
may be insufficient and, therefore, in the event of a breach of any provision of this Agreement,
the aggrieved party may elect to institute and prosecute proceedings in any court of competent
jurisdiction to enforce specific performance or to enjoin the continuing breach of this Agreement.
Such remedies shall, however, be cumulative and not exclusive, and shall be in addition to any
other remedy which such party may have.

     11.11 Trial by Jury. EACH STOCKHOLDER HEREBY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY
ACTION OR PROCEEDING BASED UPON, ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, OR THE
BREACH, TERMINATION OR VALIDITY OF THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     11.12 Term. This Agreement shall be effective as of the date hereof and shall
continue in effect thereafter until the earlier of (a) its termination by the written
consent of the parties hereto or their respective successors in interest and (b) the date
on which no Registrable Securities remain outstanding; provided that, the parties’
respective rights and obligations under Section 8 shall survive the termination of this Agreement.

     11.13 Further Assurances. Subject to the specific terms of this Agreement, each of
the Company and the Stockholders shall make, execute, acknowledge and deliver such other
instruments and documents, and take all such other actions, as may be reasonably

24

 

required in order to effectuate the purposes of this Agreement and to consummate the
transactions contemplated hereby.

     11.14 Entire Agreement. This Agreement, the Merger Agreement, the Stockholders
Agreement, the Stock Subscription Agreements and, in the case of any Management Stockholder, any
employment agreement with the Company or any Subsidiary, any Exchange Agreement, any Deferred
Share Agreement and any stock option agreement applicable to such Management Stockholder,
constitute the entire agreement and understanding of the parties hereto with respect to the matters
referred to herein. This Agreement and the agreements referred to in the preceding sentence
supersede all prior agreements and understandings among the parties with respect to such matters.
There are no representations, warranties, promises, inducements, covenants or undertakings relating
to the shares of Common Stock, other than those expressly set forth or referred to herein, in the
Stockholders Agreement, the Stock Subscription Agreements or, in the case of any Management
Stockholder, any employment agreement with the Company or any Subsidiary, any Exchange Agreement,
any Deferred Share Agreement and any stock option agreement applicable to such Management
Stockholder.

[Remainder of page intentionally left blank]

25

 

          IN WITNESS WHEREOF, this Agreement has been signed by each of the parties hereto, and shall be
effective as of the date first above written.

	 	 	 	 	 	 	 
	 	 	DOANE PET CARE ENTERPRISES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	ONTARIO TEACHERS’ PENSION PLAN BOARD	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Glen Silvestri	 	 
	 

	 	 	 	Title: Portfolio Manager	 	 
	 
	 	 	 	 	 	 
	 	 	MANAGEMENT STOCKHOLDER	 	 
	 	 	 	 	 
	 	 	Douglas J. Cahill	 	 

 

 

Schedule A

	 	 	 	 	 	 	 
	Management Stockholder	 	Address	 	 	 	 
	Douglas J. Cahill

	 	3510 Hampton Avenue, Nashville, Tennessee 37215

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