Document:

mm05-2114_8k46.htm

 

EXHIBIT 4.6

PERFORMANCE UNDERTAKING

 

THIS PERFORMANCE UNDERTAKING (as further amended, restated or otherwise modified from time to time, the “Undertaking”), dated as of May 15, 2014, is executed by Signet Jewelers Limited, a limited company organized under the laws of Bermuda (together with its successors and assigns, the “Performance Guarantor”), in favor of JPMorgan Chase Bank, N.A., a national banking association (together with its successors and assigns, “Recipient”).

 

R E C I T A L S

 

WHEREAS, Sterling Jewelers Inc. (“Sterling Jewelers” or the “Seller”) and the Transferor have entered into a Third Amended and Restated Receivables Purchase Agreement, dated as of May 15, 2014, (as further amended, restated or otherwise modified from time to time, the “Receivables Purchase Agreement”), pursuant to which Sterling Jewelers, subject to the terms and conditions contained therein, sells its right, title and interest in certain receivables to Sterling Jewelers Receivables Corp. (the “Transferor”);

 

WHEREAS, Transferor, Sterling Jewelers, as servicer, and Sterling Jewelers Receivables Master Note Trust (the “Issuer”) have entered into an Amended and Restated Transfer and Servicing Agreement, dated as of May 15, 2014 (as further amended, restated or otherwise modified from time to time, the “Transfer and Servicing Agreement”), pursuant to which Transferor, subject to the terms and conditions contained therein, sells its right, title and interest in certain receivables to the Issuer;

 

WHEREAS, the Issuer and Sterling Jewelers, as administrator, have entered into an Administration Agreement, dated as of November 2, 2000 (as further amended, restated or otherwise modified from time to time, the “Administration Agreement” and, together with each Receivables Purchase Agreement and the Transfer and Servicing Agreement, the “Agreements”);

 

WHEREAS, the Issuer, the Transferor, Sterling Jewelers, each of the Conduit Lenders from time to time party thereto (the “Conduit Lenders”), each of the Committed Lenders from time to time party thereto (the “Committed Lenders” and together with the Conduit Lenders, the “Lenders”) and the Recipient, as administrative agent, (the “Agent”) have entered into a Note Purchase Agreement, dated as of May 15, 2014, (as further amended, restated or otherwise modified from time to time, the “Note Purchase Agreement”), pursuant to which the Lenders, subject to the terms and conditions contained therein, make advances to the Issuer secured by certain accounts receivable (each, an “Advance”);

 

WHEREAS, Performance Guarantor owns directly or indirectly one hundred percent (100%) of the equity interests in Transferor and one hundred percent (100%) of the equity interests in the Issuer, and accordingly, Performance Guarantor, is expected to receive substantial direct and indirect benefits from (i) the sale of the receivables by the Seller to the Transferor and by Transferor to the Issuer and (ii) the Advances secured by the receivables and paid by the Lenders to the Issuer;

 

 

 

  

  

  

 

 

 

WHEREAS, as an inducement for Recipient to act as Administrative Agent pursuant to the Note Purchase Agreement and for Lenders to make the Advances, Performance Guarantor has agreed to guarantee the due and punctual performance by (i) the Seller of its obligations under the Receivables Purchase Agreement, (ii) Sterling Jewelers of its obligations under the Note Purchase Agreement, (iii) Sterling Jewelers, as Servicer under the Transfer and Servicing Agreement and (iv) Sterling Jewelers, as Administrator under the Administration Agreement;

 

NOW, THEREFORE, based upon the foregoing Recitals, the mutual premises and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 

AGREEMENT

 

Section 1.Definitions.  Capitalized terms used herein but not defined herein shall have the respective meanings assigned thereto in the Note Purchase Agreement, Transfer and Servicing Agreement or Receivables Purchase Agreement, as applicable.  Unless the context requires otherwise, each reference herein to “Sterling” in its capacity as Servicer shall include its Affiliates from time to time acting as Servicer under the Transfer and Servicing Agreement.  In addition, as used in this Undertaking:

 

“GAAP” means generally accepted accounting principles as in effect from time to time in the United States.

 

“Guaranteed Obligations”:  means, collectively: (i) with respect to the Seller, all covenants, agreements, terms, conditions, repurchase obligations and indemnities to be performed and observed by the Seller under and pursuant to the Receivables Purchase Agreement, and each other document executed and delivered by the Seller pursuant to the Receivables Purchase Agreement, including, without limitation, the due and punctual payment of all sums which are or may become due and owing by the Seller under either such agreement, whether for fees, expenses (including counsel fees), indemnified amounts or otherwise, whether upon any termination or for any other reason, (ii) with respect to Sterling Jewelers, all covenants, agreements, terms, conditions, repurchase obligations and indemnities to be performed and observed by Sterling Jewelers under and pursuant to the Note Purchase Agreement, and each other document executed and delivered by Sterling Jewelers pursuant to the Note Purchase Agreement, including, without limitation, the due and punctual payment of all sums which are or may become due and owing by Sterling Jewelers under such agreement, whether for fees, expenses (including counsel fees), indemnified amounts or otherwise, whether upon any termination or for any other reason, and (iii) with respect to Sterling Jewelers, all obligations of Sterling Jewelers as Servicer under the Transfer and Servicing Agreement and as Administrator under the Administration Agreement.

 

“Guaranteed Party”:  Sterling Jewelers.

 

“Material Adverse Effect” means a material adverse effect on (a) the business, assets, operations or condition (financial or otherwise) of the Performance Guarantor and its Subsidiaries taken as a 

 

 

  

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whole, (b) the ability of the Performance Guarantor and its Subsidiaries (taken as a whole) to perform any of its material obligations under this Undertaking or (c) the validity or enforceability of this Undertaking, the Note Purchase Agreement, and the Agreements, or the rights or remedies of the Administrative Agent and the Conduit Lenders and Committed Lenders thereunder.

 

“Subsidiary” means, with respect to the Performance Guarantor, at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the Performance Guarantor in the Performance Guarantor’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, Controlled or held.

 

“Taxes” means any present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any governmental authority, including any interest, additions to tax or penalties applicable thereto, but excluding UK Tax.

 

“UK Tax” means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same) imposed by the government of the United Kingdom or any political subdivision thereof and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government of the United Kingdom.

 

Section 2.Guaranty of Performance of Guaranteed Obligations.  Performance Guarantor hereby guarantees to Recipient the full and punctual payment and performance by the Guaranteed Party of its Guaranteed Obligations.  This Undertaking is an absolute, unconditional and continuing guaranty of the full and punctual performance of all Guaranteed Obligations of the Guaranteed Party under the Agreements and each other document executed and delivered by the Guaranteed Party pursuant to the Agreements and is in no way conditioned upon any requirement that Recipient first attempt to collect any amounts owing by the Guaranteed Party to Recipient or any Lender or from any other Person or resort to any collateral security, any balance of any deposit account or credit on the books of Recipient or any Lender in favor of the Guaranteed Party or any other Person or other means of obtaining payment.  Should the Guaranteed Party default (after the expiration of all applicable grace and cure periods and subject to all applicable materiality qualifiers) in the payment or performance of any of its Guaranteed Obligations, Recipient (or its assigns) may cause the immediate performance by Performance Guarantor of such defaulted Guaranteed Obligations and cause such defaulted Guaranteed Obligations to become forthwith due and payable to Recipient (or its assigns), without demand or notice of any nature (other than as expressly provided herein), all of which are hereby expressly waived by Performance Guarantor.  Notwithstanding the foregoing or anything else to the contrary set forth herein, this Undertaking is not a guarantee of the collection or collectability of any of the Receivables and Performance Guarantor shall not be responsible for any 

 

 

  

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Guaranteed Obligations to the extent the failure to perform such Guaranteed Obligations by the Guaranteed Party results from or is attributable to Receivables being uncollectible on account of the insolvency, bankruptcy or lack of creditworthiness of the related Obligor; provided that nothing herein shall relieve the Guaranteed Party from performing in full its respective Guaranteed Obligations under the Agreements or Performance Guarantor of its undertaking hereunder with respect to the full performance of such duties.

 

Section 3.Performance Guarantor’s Further Agreements to Pay.  Performance Guarantor further agrees, as the principal obligor and not as a guarantor only, to pay to Recipient (and its assigns), forthwith upon demand in funds immediately available to Recipient, all reasonable costs and expenses (including court costs and reasonable legal expenses) incurred or expended by Recipient in connection with the Guaranteed Obligations, this Undertaking and the enforcement thereof, together with interest on amounts recoverable under this Undertaking from the time when such amounts become due until payment, at a rate of interest (computed for the actual number of days elapsed based on a 360 day year) equal to the Prime Rate plus 2.00% per annum, such rate of interest changing when and as the Prime Rate changes.

 

Section 4.Waivers by Performance Guarantor.  Performance Guarantor waives notice of acceptance of this Undertaking, notice of any action taken or omitted by Recipient (or its assigns) in reliance on this Undertaking, and any requirement that Recipient (or its assigns) be diligent or prompt in making demands under this Undertaking, giving notice of any Pay Out Event, Default, Event of Default, Servicer Default or other default or omission by the Guaranteed Party or asserting any other rights of Recipient under this Undertaking.  Performance Guarantor warrants that it has adequate means to obtain from the Guaranteed Party, on a continuing basis, information concerning the financial condition of the Guaranteed Party, and that it is not relying on Recipient to provide such information, now or in the future.  Performance Guarantor also irrevocably waives, to the extent it may lawfully do so, all defenses (i) that at any time may be available in respect of the Guaranteed Obligations by virtue of any statute of limitations, valuation, stay, moratorium law or other similar law now or hereafter in effect or (ii) that arise under the law of suretyship, including impairment of collateral.  Recipient (and its assigns) shall be at liberty, without giving notice to or obtaining the assent of Performance Guarantor and without relieving Performance Guarantor of any liability under this Undertaking, to deal with the Guaranteed Party and with each other party who now is or after the date hereof becomes liable in any manner for any of the Guaranteed Obligations, in such manner as Recipient in its sole discretion deems fit, and to this end Performance Guarantor agrees that the validity and enforceability of this Undertaking, including without limitation, the provisions of Section 8 hereof, shall not be impaired or affected by any of the following:  (A) any extension, modification or renewal of, or indulgence with respect to, or substitutions for, the Guaranteed Obligations or any part thereof or any agreement relating thereto at any time; (B) any failure or omission to enforce any right, power or remedy with respect to the Guaranteed Obligations or any part thereof or any agreement relating thereto, or any collateral securing the Guaranteed Obligations or any part thereof; (C) any waiver of any right, power or remedy or of any Pay Out Event, Default, Event of Default, Servicer Default or default with respect to the Guaranteed Obligations or any part thereof or any agreement relating thereto; (D) any release, surrender, compromise, settlement, waiver, subordination or modification, with or without consideration, of any other obligation of any person or entity with respect to the Guaranteed Obligations or any 

 

 

  

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part thereof; (E) the enforceability or validity of the Guaranteed Obligations or any part thereof or the genuineness, enforceability or validity of any agreement relating thereto or with respect to the Guaranteed Obligations or any part thereof; (F) the application of payments received from any source to the payment of any payment obligations of the Guaranteed Party or, in either case, any part thereof or amounts which are not covered by this Undertaking even though Recipient (or its assigns) might lawfully have elected to apply such payments to any part or all of the payment obligations of the Guaranteed Party or to amounts which are not covered by this Undertaking; (G) the existence of any claim, setoff or other rights which Performance Guarantor may have at any time against the Guaranteed Party in connection herewith or any unrelated transaction; (H) any assignment or transfer of the Guaranteed Obligations or any part thereof; or (I) any failure on the part of the Guaranteed Party to perform or comply with any term of the Agreements or any other document executed in connection therewith or delivered thereunder, all whether or not Performance Guarantor shall have had notice or knowledge of any act or omission referred to in the foregoing clauses (A) through (I) of this Section 4.

 

Section 5.Unenforceability of Guaranteed Obligations Against the Guaranteed Party.  Notwithstanding (a) any change of ownership of the Guaranteed Party or the insolvency, bankruptcy or any other change in the legal status of the Guaranteed Party; (b) the change in or the imposition of any law, decree, regulation or other governmental act which does or might impair, delay or in any way affect the validity, enforceability or the payment when due of the Guaranteed Obligations; (c) the failure of the Guaranteed Party or Performance Guarantor to maintain in full force, validity or effect or to obtain or renew when required all governmental and other approvals, licenses or consents required in connection with the Guaranteed Obligations or this Undertaking, or to take any other action required in connection with the performance of all obligations pursuant to the Guaranteed Obligations or this Undertaking; or (d) if any of the moneys included in the Guaranteed Obligations have become unrecoverable from the Guaranteed Party or for any other reason other than final payment in full of the payment obligations in accordance with their terms, this Undertaking shall nevertheless be binding on Performance Guarantor.  This Undertaking shall be in addition to any other guaranty or other security for the Guaranteed Obligations, and it shall not be rendered unenforceable by the invalidity of any such other guaranty or security.  In the event that acceleration of the time for payment of any of the Guaranteed Obligations is stayed upon the insolvency, bankruptcy or reorganization of the Guaranteed Party for any other reason with respect to the Guaranteed Party, all such amounts then due and owing with respect to the Guaranteed Obligations under the terms of the Agreements, or any other agreement evidencing, securing or otherwise executed in connection with the Guaranteed Obligations, shall be immediately due and payable by Performance Guarantor.

 

Section 6.Representations and Warranties.  Performance Guarantor hereby represents and warrants to Recipient that:

 

(a)Existence and Standing.  Performance Guarantor is a limited company duly organized, validly existing and in good standing under the laws of Bermuda.  Performance Guarantor is duly qualified to do business and is in good standing as a foreign limited company, and has and holds all requisite power and all governmental licenses, authorizations, consents and approvals required to carry on its business in each jurisdiction in which its business is conducted 

 

 

  

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except where the failure to so qualify or so hold would not reasonably be expected to have a Material Adverse Effect.

 

(b)Authorization, Execution and Delivery; Binding Effect.  The execution and delivery by Performance Guarantor of this Undertaking, and the performance of its obligations hereunder, are within its powers and authority and have been duly authorized by all necessary action on its part and on the part of its shareholders.  This Undertaking has been duly executed and delivered by Performance Guarantor.  This Undertaking constitutes the legal, valid and binding obligation of Performance Guarantor enforceable against Performance Guarantor in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws relating to or limiting creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law).

 

(c)No Conflict; Government Consent.  The execution and delivery by Performance Guarantor of this Undertaking, and the performance of its obligations hereunder do not contravene or violate (i) its organizational documents, (ii) any law, rule or regulation applicable to it, (iii) any restrictions under any agreement, contract or instrument to which it is a party or by which it or any of its property is bound, or (iv) any order, writ, judgment, award, injunction or decree binding on or affecting it or its property, and do not result in the creation or imposition of any adverse claim on assets of Performance Guarantor (except as created hereunder) except, in any case, where such contravention or violation would not reasonably be expected to have a Material Adverse Effect.

 

(d)Financial Statements.  The quarterly financial statements of Performance Guarantor and its consolidated Subsidiaries delivered to Recipient pursuant to Section 7(a) have been prepared in accordance with GAAP consistently applied (subject to audit and normal year-end adjustments and the absence of footnotes) and fairly present in all material respects the consolidated financial condition and results of operations of Performance Guarantor and its consolidated Subsidiaries as of such date and for the period ended on such date.  The annual financial statements of Performance Guarantor and its consolidated Subsidiaries delivered to Recipient pursuant to Section 7(b) have been prepared in accordance with GAAP consistently applied and fairly present in all material respects the consolidated financial condition and results of operations of Performance Guarantor and its Subsidiaries as of such date and for the period ended on such date.  Since the last time this representation was made or deemed made, no event has occurred which would or could reasonably be expected to have a Material Adverse Effect.

 

(e)Taxes.  Performance Guarantor has timely filed or caused to be filed all Tax and UK Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes and UK Tax required to have been paid by it, except (a) Taxes or UK Tax or the filing of Tax or UK Tax returns or reports that are being contested in good faith by appropriate proceedings and for which the Performance Guarantor, as applicable, has set aside on its books adequate reserves or (b) to the extent that the failure to do so would not reasonably be expected to result in a Material Adverse Effect.

 

 

 

 

  

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(f)Litigation and Contingent Obligations.  There are no actions, suits or proceedings pending or, to the best of Performance Guarantor’s knowledge threatened, against or affecting Performance Guarantor or any of its properties, in or before any court, arbitrator or other body, that could reasonably be expected to have a Material Adverse Effect.

 

Section 7.Covenants of Performance Guarantor.  Performance Guarantor agrees, for the benefit of Recipient, that until the Guaranteed Obligations have been satisfied and paid in full:

 

(a)Quarterly Financial Statements.  As soon as available and in any event within 45 days after the end of each of the first three fiscal quarters of each fiscal year of Performance Guarantor, it will furnish copies of the consolidated unaudited balance sheet of Performance Guarantor and its Subsidiaries as at the end of such fiscal quarter, together with unaudited consolidated statements of earnings and cash flows for such fiscal quarter and for the period commencing at the end of the previous fiscal year and ending with the end of such fiscal quarter, prepared in accordance with GAAP consistently applied (subject to audit and normal year-end adjustments and the absence of footnotes) and certified by the chief financial officer, treasurer, assistant treasurer or chief accounting officer (such officer being herein called the “Financial Officer”) of Performance Guarantor.

 

(b)Annual Financial Statements.  As soon as available and in any event within 120 days after the end of each fiscal year of Performance Guarantor, it will furnish a copy of the annual consolidated audit report for such fiscal year of Performance Guarantor and its Subsidiaries including a copy of the consolidated balance sheet of Performance Guarantor as at the end of such fiscal year, together with the related consolidated statements of earnings and cash flows for such fiscal year, in each case prepared in accordance with GAAP consistently applied and certified by KPMG LLP or other independent public accountants reasonably acceptable to Recipient and by the Financial Officer of Performance Guarantor.  Within 30 days after the sending or filing thereof, it will furnish copies of all reports and registration statements that it files with the Securities and Exchange Commission or any national securities exchange.

 

(c)Other.  It will promptly, from time to time, furnish such other information, documents, records or reports relating to the condition or operations, financial or otherwise, of Performance Guarantor as Recipient may from time to time reasonably request.

 

(d)Financial Statements.  The Performance Guarantor shall include or cause to be included in all financial statements of the Performance Guarantor or Sterling language to the effect that the assets of the Issuer (including the Receivables) are not available to creditors of the Performance Guarantor or Sterling, the Receivables are not legally an asset of the Performance Guarantor or Sterling, and the Issuer is a separate legal entity from the Performance Guarantor and Sterling.

 

Section 8.Subrogation; Subordination.  Notwithstanding anything to the contrary contained herein, until the Guaranteed Obligations are paid in full, the Performance Guarantor:  (a) will not enforce or otherwise exercise any right of subrogation to any of the rights of Recipient or the Lenders against the Guaranteed Party, (b) to the extent permitted by law, hereby 

 

 

  

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waives all rights of subrogation (whether contractual, under Section 509 of the Bankruptcy Code, at law or in equity or otherwise) to the claims of Recipient and the Lenders against the Guaranteed Party and all contractual, statutory or legal or equitable rights of contribution, reimbursement, indemnification and similar rights and “claims” (as that term is defined in the Bankruptcy Code) which Performance Guarantor might now have or hereafter acquire against the Guaranteed Party that arise from the existence or performance of Performance Guarantor’s obligations hereunder, (c) will not claim any setoff, recoupment or counterclaim against the Guaranteed Party in respect of any liability of Performance Guarantor to the Guaranteed Party and (d) waives any benefit of and any right to participate in any collateral security which may be held by Recipient or Lenders.  The payment of any amounts due with respect to any indebtedness of the Guaranteed Party now or hereafter owed to Performance Guarantor is hereby subordinated to the prior payment in full of all of the Guaranteed Obligations.  Performance Guarantor agrees that, after the occurrence and during the continuance of any default in the payment or performance of any of the Guaranteed Obligations, Performance Guarantor will not demand, sue for or otherwise attempt to collect any such indebtedness of the Guaranteed Party to Performance Guarantor until all of the Guaranteed Obligations shall have been paid and performed in full.  If, notwithstanding the foregoing sentence, Performance Guarantor shall collect, enforce or receive any amounts in respect of such indebtedness while any obligations are still unperformed or outstanding during a default in the payment or performance of any of the Guaranteed Obligations, such amounts shall be collected, enforced and received by Performance Guarantor as trustee for Recipient (and its assigns) and be paid over to Recipient (or its assigns) on account of the Guaranteed Obligations without affecting in any manner the liability of Performance Guarantor under the other provisions of this Undertaking.  The provisions of this Section 8 shall be supplemental to and not in derogation of any rights and remedies of Recipient under any separate subordination agreement which Recipient may at any time and from time to time enter into with Performance Guarantor.

 

Section 9.Termination of this Undertaking.  Performance Guarantor’s obligations hereunder shall continue in full force and effect until all Advances are finally paid and satisfied in full and the Note Purchase Agreement is terminated (excluding those provisions that survive termination), provided that this Undertaking shall continue to be effective or shall be reinstated, as the case may be, if at any time payment or other satisfaction of any of the Guaranteed Obligations is rescinded or must otherwise be restored or returned upon the bankruptcy, insolvency, or reorganization of the Guaranteed Party or otherwise, as though such payment had not been made or other satisfaction occurred, whether or not Recipient (or its assigns) is in possession of this Undertaking.  No invalidity, irregularity or unenforceability by reason of the Bankruptcy Code or any insolvency or other similar law, or any law or order of any government or agency thereof purporting to reduce, amend or otherwise affect the Guaranteed Obligations shall impair, affect, be a defense to or claim against the obligations of Performance Guarantor under this Undertaking.

 

Section 10.Effect of Bankruptcy.  This Undertaking shall survive the insolvency of any Guaranteed Party and the commencement of any case or proceeding by or against the Guaranteed Party under the Bankruptcy Code or other federal, state or other 

 

 

  

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applicable bankruptcy, insolvency or reorganization statutes.  To the extent permitted by law, no automatic stay under the Bankruptcy Code with respect to the Guaranteed Party or other federal, state or other applicable bankruptcy, insolvency or reorganization statutes to which the Guaranteed Party is subject shall postpone the obligations of Performance Guarantor under this Undertaking.

 

Section 11.Setoff.  Regardless of the other means of obtaining payment of any of the Guaranteed Obligations, Recipient (and its assigns) is hereby authorized at any time and from time to time that Performance Guarantor is obligated to make any payment of the Guaranteed Obligation hereunder, without notice to Performance Guarantor (any such notice being expressly waived by Performance Guarantor) and to the fullest extent permitted by law, to set off and apply any deposits and other sums against the obligations of Performance Guarantor under this Undertaking, whether or not Recipient (or any such assign) shall have made any demand under this Undertaking and although such obligations may be contingent or unmatured.  Recipient shall promptly notify Performance Guarantor of any such setoff, provided that the failure to provide such notice shall not invalidate any such setoff.

 

Section 12.Taxes.  All payments to be made by Performance Guarantor hereunder shall be made free and clear of any tax deduction or withholding.  If Performance Guarantor is required by law to make any deduction or withholding on account of tax or similar charge from any such payment, the sum due from it in respect of such payment shall be increased to the extent necessary to ensure that, after the making of such deduction or withholding, Recipient receives a net sum equal to the sum which it would have received had no deduction or withholding been made.

 

Section 13.Further Assurances.  Performance Guarantor also agrees to do all such things and execute all such documents as Recipient (or its assigns) may reasonably consider necessary or desirable to give full effect to this Undertaking and to perfect and preserve the rights and powers of Recipient hereunder.

 

Section 14.Successors and Assigns.  This Undertaking shall be binding upon Performance Guarantor, its successors and permitted assigns, and shall inure to the benefit of and be enforceable by Recipient and its successors and assigns.  The Lenders are hereby made express third party beneficiaries of this Undertaking.  Performance Guarantor may not assign or transfer any of its obligations hereunder without the prior written consent of Recipient.

 

Section 15.Amendments and Waivers.  No amendment or waiver of any provision of this Undertaking nor consent to any departure by Performance Guarantor therefrom shall be effective unless the same shall be in writing and signed by Recipient and Performance Guarantor.  No failure on the part of Recipient to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right.

 

Section 16.Notices.  All notices and other communications provided for hereunder shall be made in writing and shall be addressed as follows:  if to Performance Guarantor, at the address set forth beneath its signature hereto, and if to Recipient, at the addresses set forth beneath its signature hereto, or at such other addresses as each of Performance Guarantor or the Recipient may designate in writing to the other.  Each such notice or other communication shall be effective (1) if given by fax, upon the receipt thereof, (2) if given by mail, five Business Days 

 

 

  

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after the time such communication is deposited in the mail with first class postage prepaid or (3) if given by any other means, when received at the address referenced in this Section 16.

 

Section 17.GOVERNING LAW.  THIS UNDERTAKING SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

Section 18.CONSENT TO JURISDICTION.  EACH OF PERFORMANCE GUARANTOR AND RECIPIENT HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS UNDERTAKING, THE AGREEMENTS OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION THEREWITH OR DELIVERED THEREUNDER AND EACH OF THE PERFORMANCE GUARANTOR AND RECIPIENT HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM.

 

Section 19.Bankruptcy Petition.

 

(a)Performance Guarantor hereby covenants and agrees that, prior to the date that is one year and one day after the payment in full of all outstanding Commercial Paper or other Indebtedness of any Conduit Lender, it will not institute against, or join any other Person in instituting against, any Conduit Lender any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other similar proceeding under the laws of the United States or any state of the United States.

 

(b)Performance Guarantor hereby covenants and agrees that, prior to the date which is one year and one day (or such longer preference period as shall then be in effect) after the payment in full of all outstanding Advances or other indebtedness of the Issuer under the Note Purchase Agreement to the secured parties thereunder (other than any amounts payable which expressly survive termination of the Note Purchase Agreement), it will not institute against, or join any other Person in instituting against, the Issuer any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other similar proceeding under the laws of the United States or any state of the United States.

 

Section 20.Miscellaneous.  This Undertaking constitutes the entire agreement of Performance Guarantor with respect to the matters set forth herein.  The rights and remedies herein provided are cumulative and not exclusive of any remedies provided by law or any other agreement, and this Undertaking shall be in addition to any other guaranty of or collateral security for any of the Guaranteed Obligations.  The provisions of this Undertaking are severable, and in any action or proceeding involving any state corporate law, or any state or federal bankruptcy, insolvency, reorganization or other law affecting the rights of creditors generally, if the obligations of Performance Guarantor hereunder would otherwise be held or 

 

 

  

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determined to be avoidable, invalid or unenforceable on account of the amount of Performance Guarantor’s liability under this Undertaking, then, notwithstanding any other provision of this Undertaking to the contrary, the amount of such liability shall, without any further action by Performance Guarantor or Recipient, be automatically limited and reduced to the highest amount that is valid and enforceable as determined in such action or proceeding.  Any provisions of this Undertaking which are prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  Unless otherwise specified, references herein to “Section” shall mean a reference to sections of this Undertaking.

 

[Signature on Following Page]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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IN WITNESS WHEREOF, Performance Guarantor has caused this Undertaking to be executed and delivered as of the date first above written.

	
  

	
PERFORMANCE GUARANTOR:

	
  

	
SIGNET JEWELERS LIMITED

	
  

	
By:   /s/ Ronald W. Ristau     

	
  

	
Name:   Ronald W. Ristau    

	
  

	
Title:   CFO                           

	
  

	
Address for Notices:

	
  

	
Signet UK Finance PLC

	
  

	
110 Cannon St

	
  

	
London EC4N 6EU

	
  

	
United Kingdom

	
  

	
Attention: Mark Jenkins

 

 

 

 

[Additional Signature to Follow]

[Signature Page to Performance Undertaking 

(Sterling Jewelers Receivables Master Note Trust, Series 2014-A)]

 

  

  

  

 

IN WITNESS WHEREOF, Performance Guarantor has caused this Undertaking to be executed and delivered as of the date first above written.

	
  

	
RECIPIENT:

	
  

	
JPMORGAN CHASE BANK, N.A.

	
  

	
By:   /s/ Scott Cornelis             

	
  

	
Name:   Scott Cornelis            

	
  

	
Title:   Executive Director         

	
  

	
Address for Notices:

	
  

	
JPMorgan Chase Bank, N.A.

	
  

	
Chase Tower

	
  

	
10 South Dearborn

	
  

	
Chicago, Illinois 60670

 

Attention: Asset Backed Securities Conduit Group

Telephone No.: (312) 336-2690

Facsimile No.: (212) 732-4487

E-mail: scott.t.cornelis@jpmorgan.com

 

 

 

 

 

 

 

 

 

[Signature Page to Performance Undertaking 

(Sterling Jewelers Receivables Master Note Trust, Series 2014-A)]Exhibit 4.1

 

STOCKHOLDERS AGREEMENT

 

DATED AS OF [      ], 2014

 

AMONG

 

ADEPTUS HEALTH INC.

 

AND

 

THE OTHER PARTIES HERETO

 

 

Table of Contents

 

	
 
    	
Page
    
	
ARTICLE I INTRODUCTORY   MATTERS
    	
1
    
	
 
    	
 
    
	
1.1.
    	
Defined Terms
    	
1
    
	
 
    	
 
    	
 
    
	
1.2.
    	
Construction
    	
4
    
	
 
    	
 
    	
 
    
	
ARTICLE II CORPORATE   GOVERNANCE MATTERS
    	
4
    
	
 
    	
 
    
	
2.1.
    	
Election of Directors
    	
4
    
	
 
    	
 
    	
 
    
	
2.2.
    	
Committees
    	
6
    
	
 
    	
 
    	
 
    
	
2.3.
    	
Consent Rights
    	
6
    
	
 
    	
 
    	
 
    
	
ARTICLE III INFORMATION
    	
6
    
	
 
    	
 
    
	
3.1.
    	
Books and Records; Access
    	
6
    
	
 
    	
 
    	
 
    
	
3.2.
    	
Sharing of Information
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE IV GENERAL   PROVISIONS
    	
8
    
	
 
    	
 
    
	
4.1.
    	
Termination
    	
8
    
	
 
    	
 
    	
 
    
	
4.2.
    	
Notices
    	
8
    
	
 
    	
 
    	
 
    
	
4.3.
    	
Amendment; Waiver
    	
9
    
	
 
    	
 
    	
 
    
	
4.4.
    	
Further Assurances
    	
9
    
	
 
    	
 
    	
 
    
	
4.5.
    	
Assignment
    	
9
    
	
 
    	
 
    	
 
    
	
4.6.
    	
Third Parties
    	
9
    
	
 
    	
 
    	
 
    
	
4.7.
    	
Governing Law
    	
9
    
	
 
    	
 
    	
 
    
	
4.8.
    	
Jurisdiction; Waiver of Jury Trial
    	
9
    
	
 
    	
 
    	
 
    
	
4.9.
    	
Specific Performance
    	
10
    
	
 
    	
 
    	
 
    
	
4.10.
    	
Entire Agreement
    	
10
    
	
 
    	
 
    	
 
    
	
4.11.
    	
Severability
    	
10
    
	
 
    	
 
    	
 
    
	
4.12.
    	
Table of Contents, Headings and Captions
    	
10
    
	
 
    	
 
    	
 
    
	
4.13.
    	
Grant of Consent
    	
10
    
	
 
    	
 
    	
 
    
	
4.14.
    	
Counterparts
    	
10
    
	
 
    	
 
    	
 
    
	
4.15.
    	
Effectiveness
    	
10
    
	
 
    	
 
    	
 
    
	
4.16.
    	
No Recourse
    	
10
    

 

i

 

STOCKHOLDERS AGREEMENT

 

This Stockholders Agreement is entered into as of [      ], 2014 by and among Adeptus Health Inc., a Delaware corporation (the “Company”), and each of the other parties identified on the signature pages hereto (the “Investor Parties”).

 

BACKGROUND:

 

WHEREAS, the Company is currently contemplating an underwritten initial public offering (“IPO”) of shares of its Common Stock;

 

WHEREAS, the Company is the managing member of Adeptus Health LLC, a Delaware limited liability company; and

 

WHEREAS, in connection with, and effective upon, the date of completion of the IPO (the “Closing Date”), the Company and the Investor Parties wish to set forth certain understandings between such parties, including with respect to certain governance matters.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the parties agree as follows:

 

ARTICLE I
 INTRODUCTORY MATTERS

 

1.1.         Defined Terms.  In addition to the terms defined elsewhere herein, the following terms have the following meanings when used herein with initial capital letters:

 

“Affiliate” has the meaning set forth in Rule 12b-2 promulgated under the Exchange Act, as in effect on the date hereof.

 

“Agreement” means this Stockholders Agreement, as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance with the terms hereof.

 

“Beneficial Owner” has the meaning set forth in Rule 13d-3 promulgated under the Exchange Act.

 

“beneficially own” has the meaning set forth in Rule 13d-3 promulgated under the Exchange Act.

 

“Board” means the board of directors of the Company.

 

“Business Day” means a day other than a Saturday, Sunday, federal or New York State holiday or other day on which commercial banks in New York City are authorized or required by law to close.

 

 

“Change of Control” means the occurrence of any of the following events: (i) any Person or any group of Persons acting together which would constitute a “group” for purposes of Section 13(d) of the Exchange Act or any successor provisions thereto, excluding a group of Persons that is party to this Agreement, is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding voting securities; or (ii) the following individuals cease for any reason to constitute a majority of the number of Directors of the Company then serving: individuals who, on the Closing Date, constitute the Company Board and any new Director whose appointment or election by the Company Board or nomination for election by the Company’s shareholders was approved or recommended by a vote of at least two-thirds (2/3) of the Directors then still in office who either were Directors on the Closing Date or whose appointment, election or nomination for election was previously so approved or recommended by the Directors referred to in this clause (ii); or (iii) there is consummated a merger or consolidation of the Company with any other corporation or other entity, and, immediately after the consummation of such merger or consolidation, either (x) the Company Board immediately prior to the merger or consolidation does not constitute at least a majority of the board of Directors of the company surviving the merger or, if the surviving company is a Subsidiary, the ultimate parent thereof, or (y) the voting securities of the Company immediately prior to such merger or consolidation do not continue to represent or are not converted into more than 50% of the combined voting power of the then outstanding voting securities of the Person resulting from such merger or consolidation or, if the surviving company is a Subsidiary, the ultimate parent thereof; or (iv) the shareholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement or series of related agreements for the sale, lease or other disposition, directly or indirectly, by the Company of all or substantially all of the Company’s assets, other than such sale or other disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by shareholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.  Notwithstanding the foregoing, except with respect to clause (ii) and clause (iii)(x) above, a “Change of Control” shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the shares of the Company immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in, and own substantially all of the shares of, an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions.

 

“Closing Date” has the meaning set forth in the Background.

 

“Company” has the meaning set forth in the Preamble.

 

“Company Board” means the board of directors of the Company.

 

“Common Stock” means the shares of common stock, par value $0.01 per share, of the Company, and any other capital stock of the Company into which such stock is reclassified or reconstituted and any other common stock of the Company.

 

2

 

“Control” (including its correlative meanings, “Controlled by” and “under common Control with”) means possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise) of a Person.

 

“Director” means any member of the Board.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, as the same may be amended from time to time.

 

“Expiration Date” has the meaning set forth in Section 4.1.

 

“Governmental Authority” means any nation or government, any state or other political subdivision thereof, and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

 

“Investor Parties” has the meaning set forth in the Preamble.

 

“IPO” has the meaning set forth in the Background.

 

“Law” means any statute, law, regulation, ordinance, rule, injunction, order, decree, governmental approval, directive, requirement, or other governmental restriction or any similar form of decision of, or determination by, or any interpretation or administration of any of the foregoing by, any Governmental Authority.

 

“Observer” has the meaning set forth in Section 2.1(a).

 

“Permitted Assigns” means with respect to a Sterling Entity, a Transferee of shares of Common Stock that agrees to become party to, and to be bound to the same extent as its Transferor by the terms of, this Agreement.

 

“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, or other form of business organization, whether or not regarded as a legal entity under applicable Law, or any Governmental Authority or any department, agency or political subdivision thereof.

 

“Sterling Designee” has the meaning set forth in Section 2.1(b).

 

“Sterling Entities” means the entities comprising Sterling Partners, their Affiliates and their respective successors and Permitted Assigns.

 

“Sterling Partners” means the entities listed on the signature pages hereto under the heading “Sterling Partners.”

 

“Subsidiary” means, with respect to any Person, any corporation, limited liability company, partnership, association or other business entity of which: (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of

 

3

 

any contingency) to vote in the election of directors, representatives or trustees thereof is at the time owned or Controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof; or (ii) if a limited liability company, partnership, association or other business entity, a majority of the total voting power of stock (or equivalent ownership interest) of the limited liability company, partnership, association or other business entity is at the time owned or Controlled, directly or indirectly, by any Person or one or more Subsidiaries of that Person or a combination thereof.  For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons shall be allocated a majority of limited liability company, partnership, association or other business entity gains or losses or shall be or Control the managing member, managing director or other governing body or general partner of such limited liability company, partnership, association or other business entity.

 

“Total Number of Directors” means the total number of Directors comprising the Board.

 

“Transfer” (including its correlative meanings, “Transferor,” “Transferee” and “Transferred”) shall mean, with respect to any security, directly or indirectly, to sell, contract to sell, give, assign, hypothecate, pledge, encumber, grant a security interest in, offer, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of any economic, voting or other rights in or to such security.  When used as a noun, “Transfer” shall have such correlative meaning as the context may require.

 

1.2.         Construction.  The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction will be applied against any party.  Unless the context otherwise requires: (a) “or” is disjunctive but not exclusive, (b) words in the singular include the plural, and in the plural include the singular, and (c) the words “hereof,” “herein,” and “hereunder” and words of similar import when used in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section references are to this Agreement unless otherwise specified.

 

ARTICLE II
 CORPORATE GOVERNANCE MATTERS

 

2.1.         Election of Directors

 

(a)           Following the Closing Date, Sterling Partners shall have the right, but not the obligation, to nominate to the Board a number of designees equal to at least: (i) a majority of the Total Number of Directors, so long as the Sterling Entities collectively beneficially own 50% or more of the Company’s then outstanding voting securities; (ii) 40% of the Total Number of Directors, in the event that the Sterling Entities collectively beneficially own 40% or more, but less than 50%, of the Company’s then outstanding voting securities; (iii) 30% of the Total Number of Directors, in the event that the Sterling Entities collectively beneficially own 30% or more, but less than 40%, of the Company’s then outstanding voting securities; (iv) 20% of the Total Number of Directors, in the event that the Sterling Entities collectively beneficially own 20% or more, but less than 30%, of the Company’s then

 

4

 

outstanding voting securities; and (v) 10% of the Total Number of Directors, in the event that the Sterling Entities collectively beneficially own 5% or more, but less than 20%, of the Company’s then outstanding voting securities. For purposes of calculating the number of directors that Sterling Partners is entitled to designate pursuant to the immediately preceding sentence, any fractional amounts shall automatically be rounded up to the nearest whole number (e.g., one and one quarter (1 1/4) Directors shall equate to two (2) Directors) and any such calculations shall be made after taking into account any increase in the Total Number of Directors. In addition, in the event that Sterling Partners has the right to designate only one Director pursuant to this Section 2.1(a), then Sterling Partners shall also have the right to designate one additional individual (an “Observer”) to attend all Board meetings; provided that such observer shall not have the right to participate in any vote, consent or other action of the Board or its committees.

 

(b)           In the event that Sterling Partners has nominated less than the total number of designees Sterling Partners shall be entitled to nominate pursuant to Section 2.1(a), Sterling Partners shall have the right, at any time, to nominate such additional designees to which it is entitled, in which case, the Company and the Directors shall take all necessary corporation action, to the fullest extent permitted by applicable Law (including with respect to any fiduciary duties under Delaware law), to (x) enable Sterling Partners to nominate and effect the election or appointment of such additional individuals, whether by increasing the size of the Board, or otherwise and (y) to designate such additional individuals nominated by Sterling Partners to fill such newly-created vacancies or to fill any other existing vacancies.  Each such person whom Sterling Partners shall actually nominate pursuant to this Section 2.1 as a Director shall be referred to herein as a “Sterling Designee.”

 

(c)           In the event that a vacancy is created at any time by the death, retirement or resignation of any Director designated by Sterling Partners pursuant to this Section 2.1, the remaining Directors and the Company shall, to the fullest extent permitted by applicable Law (including with respect to any fiduciary duties under Delaware law), cause the vacancy created thereby to be filled by a new designee of Sterling Partners, if such Director was designated by Sterling Partners, as soon as possible, and the Company hereby agrees to take, to the fullest extent permitted by applicable Law (including with respect to any fiduciary duties under Delaware law), at any time and from time to time, all actions necessary to accomplish the same.

 

(d)           The Company agrees, to the fullest extent permitted by applicable Law (including with respect to any fiduciary duties under Delaware law), to include in the slate of nominees recommended by the Board for election at any meeting of stockholders called for the purpose of electing Directors the persons designated pursuant to this Section 2.1 and to nominate and recommend each such individual to be elected as a Director as provided herein, and to solicit proxies or consents in favor thereof.  The Company is entitled to identify such individual as a Sterling Designee pursuant to this Stockholders Agreement.

 

(e)           Each Sterling Entity agrees, to the fullest extent permitted by applicable Law, to vote, or act by written consent with respect thereto, any shares of Common Stock beneficially owned by it that are entitled to vote in the election of Directors at any meeting of stockholders called for the purpose of electing Directors, to cause the Sterling Designees

 

5

 

nominated pursuant to this Section 2.1 to be elected to the Board, and to solicit proxies or consents in favor thereof.

 

(f)            Each of the Investor Parties agrees, to the fullest extent permitted by applicable Law, to refrain from voting to remove from the Board, any Director nominated pursuant to this Section 2.1, other than for cause.

 

2.2.         Committees

 

(a)           For so long as the Company qualifies as a “controlled company” under applicable listing standards and to the fullest extent permitted by applicable Law, Sterling Partners shall have the right, but not the obligation, to designate (i) a majority of the members of any Corporate Governance and Nominating Committee or similar committee of the Board and (ii) up to two members of any Compensation Committee or similar committee of the Board.  In the event that the Company no longer qualifies as a “controlled company” under applicable listing standards, Sterling Partners shall continue to have the right to designate at least one member of each such committee of the Board for so long as permitted under applicable Law; provided, however, Sterling Partners shall cease to have such right to designate a committee member in the event that Sterling Partners ceases to have the right to designate a Director pursuant to Section 2.1(a).

 

(b)           In the event that Sterling Partners does not have the right to designate a member of any committee of the Board under applicable Law or this Agreement, then Sterling Partners shall have the right, to the fullest extent permitted by applicable Law, to appoint an Observer to any such committee; provided, however, that Sterling Partners shall cease to have the right to designate an Observer to any such committee in the event that Sterling Partners ceases to have the right to designate a Director pursuant to Section 2.1(a).

 

2.3.         Consent RightsFor so long as the Sterling Entities beneficially own 35% or more of the Company’s then outstanding voting securities, the following actions by the Company or any of its Subsidiaries shall require the approval of all Sterling Partners, in addition to the Board’s approval (or the approval of the requisite governing body of any Subsidiary of the Company):

 

(a)           the hiring or firing of the chief executive officer of the Company;

 

(b)           any Change of Control;

 

(c)           entering into any agreement providing for the acquisition or divestiture of assets or Persons, in each such case providing for aggregate consideration in excess of $50 million; and

 

(d)           any issuance of equity securities by the Company or any of its Subsidiaries for an aggregate consideration in excess of $50 million.

 

ARTICLE III
 INFORMATION

 

3.1.         Books and Records; Access.  The Company shall, and shall cause its Subsidiaries to, keep proper books, records and accounts, in which full and correct entries shall

 

6

 

be made of all financial transactions and the assets and business of the Company and each of its Subsidiaries in accordance with generally accepted accounting principles.  For so long as the Sterling Entities beneficially own 5% or more of the Company’s then outstanding voting securities, the Company shall, and shall cause its Subsidiaries to, permit the Sterling Entities and their respective designated representatives, at reasonable times and upon reasonable prior notice to the Company, to review the books and records of the Company or any of such Subsidiaries and to discuss the affairs, finances and condition of the Company or any of such Subsidiaries with the officers of the Company or any such Subsidiary.  For so long as the Sterling Entities beneficially own 5% or more of the Company’s then outstanding voting securities, the Company shall, and shall cause its Subsidiaries to, provide the Sterling Entities, in addition to other information that might be reasonably requested by the Sterling Entities from time to time, (i) direct access to the Company’s auditors and officers, (ii) the ability to link Sterling Partners’ systems into the Company’s general ledger and other systems in order to enable the Sterling Entities to retrieve data on a “real-time” basis, (iii) quarter-end reports, in a format to be prescribed by the Sterling Entities, to be provided within 30 days after the end of each quarter, (iv) copies of all materials provided to the Board (or equivalent governing body) at the same time as provided to the Directors (or their equivalent), (v) access to appropriate officers and Directors of the Company at such times as may be requested by the Sterling Entities, as the case may be, for consultation with each of the Sterling Entities with respect to matters relating to the business and affairs of the Company and its Subsidiaries, (vi) information in advance with respect to any significant corporate actions, including, without limitation, extraordinary dividends, mergers, acquisitions or dispositions of assets, issuances of significant amounts of debt or equity and material amendments to the certificate of incorporation or bylaws of the Company or any of its Subsidiaries, and to provide the Sterling Entities, with the right to consult with the Company and its Subsidiaries with respect to such actions, (vii) flash data, in a format to be prescribed by the Sterling Entities, to be provided within ten days after the end of each quarter and (viii) to the extent otherwise prepared by the Company, operating and capital expenditure budgets and periodic information packages relating to the operations and cash flows of the Company and its Subsidiaries (all such information so furnished pursuant to this Section 3.1, the “Information”).  The Company agrees to consider, in good faith, the recommendations of the Sterling Entities in connection with the matters on which the Company is consulted as described above.  Subject to Section 3.2, any Sterling Entity (and any party receiving Information from a Sterling Entity) who shall receive Information shall maintain the confidentiality of such Information, and the Company shall not be required to disclose any privileged Information of the Company so long as the Company has used its commercially reasonable efforts to enter into an arrangement pursuant to which it may provide such information to the Sterling Entities without the loss of any such privilege.

 

3.2.         Sharing of Information.  Individuals associated with Sterling Partners may from time to time serve on the boards of directors of the Company and its Subsidiaries.  The Company, on its behalf and on behalf of its Subsidiaries, recognizes that such individuals (i) will from time to time receive non-public information concerning the Company and its Subsidiaries, and (ii) may (subject to the obligation to maintain the confidentiality of such information in accordance with Section 3.1) share such information with other individuals associated with Sterling Partners.  Such sharing will be for the dual purpose of facilitating support to such individuals in their capacity as directors and enabling the Sterling Entities, as equityholders, to

 

7

 

better evaluate the Company’s performance and prospects.  The Company, on behalf of itself and its Subsidiaries, hereby irrevocably consents to such sharing.

 

ARTICLE IV
 GENERAL PROVISIONS

 

4.1.         Termination.  This Agreement shall terminate on the earlier to occur of (i) the date (the “Expiration Date”) that is one year after the date on which the Company ceases to qualify as a “controlled company” within the meaning of the NYSE Rules  and (ii) upon the delivery of a written notice by Sterling Partners to the Company requesting that this Agreement terminate.

 

4.2.         Notices.  Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, or mailed first class mail (postage prepaid) or sent by reputable overnight courier service (charges prepaid) to the Company at the address set forth below and to any other recipient at the address indicated on the Company’s records, or at such address or to the attention of such other Person as the recipient party has specified by prior written notice to the sending party.  Notices will be deemed to have been given hereunder when sent by facsimile (receipt confirmed) delivered personally, five (5) days after deposit in the U.S. mail and one (1) day after deposit with a reputable overnight courier service.

 

The Company’s address is:

 

Adeptus Health Inc.
 2941 South Lake Vista, Suite 200
 Lewisville, Texas 75067
 [Attention:  Chief Executive Officer]

 

[with a mandatory copy to:

 

Adeptus Health Inc.
 2941 South Lake Vista, Suite 200
 Lewisville, Texas 75067
 [Attention:  Chief Financial Officer]]

 

The Sterling Entities’ address is:

 

Sterling Partners
 401 N. Michigan Ave., Suite 3300
 Chicago, Illinois 60611
 Fax: [      ]

 

with a copy (not constituting notice) to:

 

Simpson Thacher & Bartlett LLP
 425 Lexington Avenue
 New York, New York 10017

8

 

Attention:  Joseph H. Kaufman, Esq.
 Fax:  (212) 455-2000

 

4.3.         Amendment; Waiver.  This Agreement may be amended, supplemented or otherwise modified only by a written instrument executed by the Company and the other parties hereto.  Neither the failure nor delay on the part of any party hereto to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence.  No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

 

4.4.         Further Assurances.  The parties hereto will sign such further documents, cause such meetings to be held, resolutions passed, exercise their votes and do and perform and cause to be done such further acts and things necessary, proper or advisable in order to give full effect to this Agreement and every provision hereof.  To the fullest extent permitted by law, the Company shall not directly or indirectly take any action that is intended to, or would reasonably be expected to result in, any Sterling Entity being deprived of the rights contemplated by this Agreement.

 

4.5.         Assignment.  This Agreement will inure to the benefit of and be binding on the parties hereto and their respective successors and permitted assigns.  This Agreement may not be assigned without the express prior written consent of the other parties hereto, and any attempted assignment, without such consents, will be null and void; provided, however, that each Sterling Entity shall be entitled to assign, in whole or in part, to any of its Permitted Assigns without such prior written consent any of its rights hereunder.

 

4.6.         Third Parties.  Except as provided for in Section 3.2 with respect to any Sterling Entity, this Agreement does not create any rights, claims or benefits inuring to any person that is not a party hereto nor create or establish any third party beneficiary hereto.

 

4.7.         Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to principles of conflicts of laws thereof.

 

4.8.         Jurisdiction; Waiver of Jury Trial.  In any judicial proceeding involving any dispute, controversy or claim arising out of or relating to this Agreement, each of the parties unconditionally accepts the jurisdiction and venue of or, if the Court of Chancery does not have subject matter jurisdiction over this matter, the Superior Court of the State of Delaware (Complex Commercial Division), or if jurisdiction over the matter is vested exclusively in federal courts, the United States District Court for the District of Delaware, and the appellate courts to which orders and judgments thereof may be appealed.  In any such judicial proceeding, the parties agree that in addition to any method for the service of process permitted or required by such courts, to the fullest extent permitted by law, service of process may be made by delivery provided pursuant to the directions in Section 4.2.  EACH OF THE PARTIES HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY

 

9

 

JURY IN ANY JUDICIAL PROCEEDING INVOLVING ANY DISPUTE, CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

4.9.         Specific Performance.  Each party hereto acknowledges and agrees that in the event of any breach of this Agreement by any of them, the other parties hereto would be irreparably harmed and could not be made whole by monetary damages.  Each party accordingly agrees to waive the defense in any action for specific performance that a remedy at law would be adequate and that the parties, in addition to any other remedy to which they may be entitled at law or in equity, shall be entitled to specific performance of this Agreement without the posting of bond.

 

4.10.       Entire Agreement.  This Agreement sets forth the entire understanding of the parties hereto with respect to the subject matter hereof.  There are no agreements, representations, warranties, covenants or understandings with respect to the subject matter hereof or thereof other than those expressly set forth herein and therein.  This Agreement supersedes all other prior agreements and understandings between the parties with respect to such subject matter.

 

4.11.       Severability.  If any provision of this Agreement, or the application of such provision to any Person or circumstance or in any jurisdiction, shall be held to be invalid or unenforceable to any extent, (i) the remainder of this Agreement shall not be affected thereby, and each other provision hereof shall be valid and enforceable to the fullest extent permitted by law, (ii) as to such Person or circumstance or in such jurisdiction such provision shall be reformed to be valid and enforceable to the fullest extent permitted by law and (iii) the application of such provision to other Persons or circumstances or in other jurisdictions shall not be affected thereby.

 

4.12.       Table of Contents, Headings and Captions.  The table of contents, headings, subheadings and captions contained in this Agreement are included for convenience of reference only, and in no way define, limit or describe the scope of this Agreement or the intent of any provision hereof.

 

4.13.       Grant of Consent.  Any vote, consent or approval of Sterling Partners or a Sterling Entity hereunder shall be deemed to be given with respect to such entities or entity if such vote, consent or approval is given by members of such entities or entity having a pecuniary interest in a majority of the shares of Common Stock over which all members of such entities or entity then have a pecuniary interest.

 

4.14.       Counterparts.  This Agreement and any amendment hereto may be signed in any number of separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one Agreement (or amendment, as applicable).

 

4.15.       Effectiveness.  This Agreement shall become effective upon the Closing Date.

 

4.16.       No Recourse.  This Agreement may only be enforced against, and any claims or cause of action that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement may only be made against the entities

 

10

 

that are expressly identified as parties hereto and no past, present or future Affiliate, director, officer, employee, incorporator, member, manager, partner, stockholder, agent, attorney or representative of any party hereto shall have any liability for any obligations or liabilities of the parties to this Agreement or for any claim based on, in respect of, or by reason of, the transactions contemplated hereby.

 

[Remainder of Page Intentionally Left Blank]

 

11

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first above written.

 

 

	
 
    	
ADEPTUS   HEALTH INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to Stockholders Agreement]

 

 

	
STERLING   PARTNERS:
    	
 
    
	
 
    	
 
    
	
First   Choice AIV Holding LLC
    	
 
    
	
By:   SCP III AIV THREE - FCER, L.P., its general partner
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SCP   III AIV THREE - FCER Conduit, L.P.
    	
 
    
	
By:   SC Partners III, L.P., its general partner
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
[    ]
    	
 
    
	
By:   [    ], its general partner
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

[Signature Page to Stockholders Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}]]