Document:

Exhibit 4.4

 

VOTING AGREEMENT

 

THIS VOTING AGREEMENT (this “Agreement”), dated as of November 14, 2013, is by and among JLL JGW Distribution LLC, a Delaware limited liability company, and JGW Holdco, LLC, a Delaware limited liability company (collectively, the “JLL Holders”), PGHI Corp., a Delaware corporation (“PGHI”), and each of the other stockholders of JGWPT Holdings Inc., a Delaware corporation (the “Company”), who are signatories hereto including, without limitation, certain members of management (collectively with the JLL Holders and PGHI, the “Stockholders”).

 

RECITALS

 

A.            Each Stockholder other than PGHI is the “beneficial owner” (as such term is defined in Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) and is entitled to dispose of (or to direct the disposition of) and to vote (or to direct the voting of) the number of shares of Class B Common Stock, par value $0.00001 per share (the “Class B Shares”), of the Company set forth on Schedule A hereto (such Class B Shares, together with all other voting securities of the Company, including shares of Class A Common Stock, par value $0.00001 per share, Class C Common Stock, par value $0.00001 per share, and Class B Shares acquired by the Stockholders after the date hereof and during the term of this Agreement, being collectively referred to herein as the “Subject Shares”).

 

B.            Concurrently with the execution and delivery of this Agreement, the Company is issuing shares of Class A Common Stock, par value $0.00001 per share, in an initial public offering as more fully described in the prospectus distributed in connection therewith (the “Offering”).

 

C.            In connection with the Offering, the Stockholders desire to enter into this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual premises, representations, warranties, covenants and agreements contained herein, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1.             Representations and Warranties of the Stockholders.

 

Each of the Stockholders, for itself and not for any other Stockholder, hereby represents and warrants to the other Stockholders as follows:

 

(a)           Due Authorization and Organization.  To the extent that the Stockholder is not a natural person, the Stockholder is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation or organization (as applicable) and, to the extent that the Stockholder is a natural person, the Stockholder has the requisite capacity to enter into this Agreement.  The Stockholder has all requisite legal power (corporate or other) and authority to execute and deliver this Agreement and to perform its obligations hereunder.  This Agreement has been

 

 

duly authorized, executed and delivered by the Stockholder and constitutes a valid and binding obligation of the Stockholder enforceable in accordance with its terms subject to (i) bankruptcy, insolvency, moratorium and other similar laws now or hereafter in effect relating to or affecting creditors’ rights generally, and (ii) general principles of equity (regardless of whether considered in a proceeding at law or in equity).

 

(b)           No Conflicts.  (i) No authorization, consent or approval of any other Person is necessary for the execution of this Agreement by such Stockholder or the consummation by such Stockholder of the transactions contemplated hereby and (ii) none of the execution and delivery of this Agreement by such Stockholder, the consummation by such Stockholder of the transactions contemplated hereby or compliance by such Stockholder with any of the provisions hereof shall (A) conflict with or result in any breach of the organizational documents of such Stockholder (if applicable), (B) result in, or give rise to, a violation or breach of or a default under (with or without notice or lapse of time, or both) any of the terms of any material contract, understanding, agreement or other instrument or obligation to which such Stockholder is a party or by which such Stockholder or any of its Subject Shares may be bound, or (C) violate any order, writ, injunction, decree, judgment, statute, rule or regulation applicable to such Stockholder, except for any of the foregoing as would not reasonably be expected to prevent such Stockholder from performing its obligations under this Agreement.

 

(c)           The Subject Shares.  Schedule A sets forth the number of Subject Shares over which the Stockholder has record or beneficial ownership as of the date hereof.  As of the date hereof, the Stockholder is the record or beneficial owner of the Subject Shares denoted as being owned by the Stockholder on Schedule A and has the sole power to vote (or cause to be voted) such Subject Shares.  The Stockholder has good and valid title to the Subject Shares denoted as being owned by the Stockholder on Schedule A, free and clear of any and all Liens, other than those created by this Agreement, the Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) of the Company, and the Amended and Restated Limited Liability Company Agreement, dated as of November 13, 2013 (the “JGWPT Holdings LLC Agreement”) of JGWPT Holdings, LLC, a Delaware limited liability company (“JGWPT Holdings LLC”), or as would not prevent the Stockholder from performing its obligations under this Agreement.  Capitalized terms used in this Agreement and not otherwise defined shall have the respective meanings ascribed to them in the JGWPT Holdings LLC Agreement.

 

2.             Covenants of the Stockholders.

 

Until the termination of this Agreement in accordance with Section 4, subject to the terms and conditions set forth herein, each Stockholder, in its capacity as such, agrees as follows:

 

(a)           Election of Directors.  At each annual meeting of stockholders of the Company (each, a “Meeting”) while this Agreement is in effect, or at any adjournment, postponement or continuation of any such Meeting, or in any other circumstances upon which a vote or other approval with respect to the election of

 

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directors is sought, including by action by written consent in lieu of a meeting, each Stockholder shall vote (or cause to be voted) the Subject Shares held beneficially or of record by such Stockholder in favor of the election or re-election to the Board of Directors of the Company of:

 

(i)            four (4) designees of JLL, who shall initially be Paul S. Levy, Frank Rodriguez, Alexander Castaldi and Kevin Hammond;

 

(ii)           one (1) designee of (A) PGHI, (B) any Permitted Transferee of PGHI to which PGHI Transfers at least 872,136 Common Interests, or (C) DLJ Merchant Banking Partners IV, L.P. (“DLJMB Main Fund”), as long as DLJMB Main Fund collectively holds, directly or indirectly, at least 872,136 Common Interests and (in the case of (B) and (C)) to which PGHI assigns its right to designate a member of the Board of Directors of the Company (a “PGHI Director Assignee”); and

 

(iii)          the Chief Executive Officer of the Company.

 

Any such vote shall be cast in accordance with such procedures relating thereto so as to ensure that it is duly counted for purposes of determining that a quorum is present and for purposes of recording the results of such vote.  As used herein, “JLL” means JLL Fund V AIF I, LP, a Delaware limited partnership, JLL Fund V AIF II, LP, a Delaware limited partnership, any other private equity investment partnership or private equity pooled investment vehicle sponsored or managed by JLL Partners, Inc., or any affiliate of any of the foregoing (including JLL Partners, Inc.).

 

(b)           Additional Understandings.

 

(i)            If at any time PGHI (together with its then-current stockholders) or the PGHI Director Assignee, as applicable, holds in the aggregate fewer than 436,104 Common Interests, including Non-Voting Common Interests, then PGHI or the PGHI Director Assignee, as applicable, will no longer be entitled to designate a member of the Board of Directors of the Company pursuant to Section 2(a)(ii) above.

 

(ii)           Notwithstanding any provision in the Certificate of Incorporation or JGWPT Holdings LLC Agreement, PGHI agrees that, in any transaction pursuant to Section 9.10 of the JGWPT Holdings LLC Agreement in which Common Interests or Subject Shares are distributed to equity holders of PGHI, based on such equity holders’ proportionate ownership of PGHI, PGHI will not Transfer (as that term is defined in the JGWPT Holdings LLC Agreement) any Common Interests (including Non-Voting Common Interests) or Subject Shares unless the Transferee is at such time a party to this Agreement or has previously executed and delivered to the Partnership a joinder agreement, pursuant to which such Transferee agrees to be bound by all the terms and conditions of this Agreement, together with such other documents or instruments as may be necessary or appropriate to obligate such Transferee to the terms and conditions of this Agreement.

 

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(iii)          Notwithstanding anything to the contrary contained herein, solely with respect to the designation of directors pursuant to Section 2(a)(iii) above, any CS-Controlled Affiliate shall be limited to casting votes representing, in the aggregate, no more than 9.9% of the total voting power entitled to be cast in the designation of such members of the Board of Directors of the Company, and to the extent that there is, at any time, more than one such CS-Controlled Affiliate, then the votes entitled to be cast by all such CS-Controlled Affiliates shall be reduced ratably in proportion to each such CS-Controlled Affiliate’s respective Aggregate Common Interest Percentage, such that the aggregate votes entitled to be cast by all such CS-Controlled Affiliates shall not exceed 9.9% of the total voting power entitled to be cast in the election of such members of the Board of Directors of the Company.

 

(c)           Removal and Resignation of Directors.  Any member of the Board of Directors of the Company may be removed from the Board of Directors in the manner allowed by law and the Company’s Certificate of Incorporation and by-laws, each as amended from time to time; provided, however, that each Stockholder agrees that it will not, as a stockholder of the Company, vote for the removal of any director without the mutual consent of the Person(s) entitled to designate such director pursuant to Section 2(a) hereof.

 

(d)           Vacancy of the Designated Directors.  If a director designated by one or more Person(s) under Section 2(a) hereof is removed or resigns from office, dies, or vacates his office as a result of disability, his successor shall be appointed in the manner allowed by law and the Company’s Certificate of Incorporation and by-laws, each as amended from time to time; provided, however, that each Stockholder shall use its commercially reasonable efforts, subject to applicable law, to cause a replacement director designated by the Person(s) entitled to designate such director under Section 2(a) hereof to be elected to the Board of Directors to fill such vacancy and shall vote all of its Subject Shares in favor of the election of such replacement director in accordance with Section 2(a) hereof.

 

(e)           Transferees.  In connection with any transfer of Subject Shares in a Permitted Transfer or to a Permitted Transferee (as such terms are defined in the JGWPT Holdings LLC Agreement), it shall be a condition to any such transfer that the transferee agree to be bound by the provisions of this Agreement.

 

(f)            No Contrary Agreement.  Each Stockholder agrees not to enter into any agreement or commitment with any Person the effect of which would be inconsistent with or violative of the provisions and agreements contained in this Section 2.

 

3.             Obligations as Director or Officer.

 

Nothing in this Agreement shall be deemed to limit or restrict any director or officer of the Company from acting in his capacity as such director or officer or from exercising his fiduciary duties and responsibilities, it being agreed and understood that this Agreement shall apply to each Stockholder solely in his capacity as a stockholder of

 

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the Company and shall not apply to his actions, judgments, or decisions as a director or officer of the Company if he or she is a director or officer of the Company.

 

4.             Termination.

 

Unless earlier terminated by operation of applicable law, this Agreement shall terminate (a) immediately upon the written agreement of all of the Stockholders who then have a right, pursuant to Section 2 of this Agreement, to designate any directors, or (b) automatically at such time as no stockholder party hereto has a right to designate any directors hereunder.  No party hereto shall be relieved from any liability for intentional breach of this Agreement by reason of any such termination.  Notwithstanding the foregoing, this Section 4 and Sections 5 and 6 of this Agreement shall survive the termination of this Agreement.

 

5.             Waiver of Jury Trial.

 

EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.  EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) EACH SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 5.

 

6.             Governing Law.

 

This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, without regard to principles of conflict of laws.

 

7.             Specific Performance.

 

Each party hereto acknowledges that money damages would be both incalculable and an insufficient remedy for any breach of this Agreement by such party and that any such breach would cause the other party hereto irreparable harm.  Accordingly, each party hereto also agrees that, in the event of any breach or threatened breach of the provisions of this Agreement by such party, the other party hereto shall be entitled to equitable relief without the requirement of posting a bond or other security, including in the form of injunctions and orders for specific performance.

 

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8.             Amendment.

 

This Agreement may be amended, modified or supplemented at any time and from time to time by the written agreement of each of the Stockholders.

 

9.             Assignment; No Third Party Beneficiaries.

 

Neither this Agreement nor any of the rights, benefits or obligations hereunder may be assigned by any of the parties hereto (whether by operation of law or otherwise) without the prior written consent of all of the other parties.  Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns.  Nothing in this Agreement, express or implied, is intended to or shall confer upon any Person (other than the Stockholders and their respective successors and permitted assigns) any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement, and no Person (other than as so specified) shall be deemed a third party beneficiary under or by reason of this Agreement.

 

10.          Notices.  All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given or made (i) as of the date delivered if delivered personally or on the date of confirmation of receipt if sent by facsimile and (ii) on the third business day after deposit in the U.S. mail, if mailed by registered or certified mail (postage prepaid, return receipt requested), in each case to the parties at the following addresses (or at such other address for a party as shall be specified by like notice, except that notices of changes of address shall be effective upon receipt):

 

if to the JLL Holders, to:

 

JGW Holdco, LLC

JLL JGW Distribution LLC

c/o JLL Partners, Inc.

450 Lexington Avenue

31st Floor

New York, New York 10017

Attention:          Frank J. Rodriguez

Facsimile:          (212) 286-8626

 

with copies to:

 

Skadden, Arps, Slate, Meagher & Flom LLP 

920 N. King Street

Wilmington, Delaware 19801

Attn:    Steven J. Daniels, Esq.

Telephone: (302) 651-3240

Fax: (302) 552-3240

 

and

 

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Reed Smith LLP

1650 Market Street, Suite 2500

Philadelphia, Pennsylvania  19103

Attn:  Lori L. Lasher, Esq.

Telephone: (215) 851-8136

Fax:  (215) 851-1420

 

If to any of the other Stockholders, at the address set forth on Schedule A hereto or to such other address as the party to whom notice is to be given may have furnished to the other parties in writing in accordance herewith.

 

11.          Severability.

 

If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner adverse to any party.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the maximum extent possible.

 

12.          Integration.

 

This Agreement (together with the Certificate of Incorporation, the JGWPT Holdings LLC Agreement, and that certain Director Designation Agreement, dated as of November 14, 2013, by and between the JLL Holders (as defined in the Director Designation Agreement) and the Company), including Schedule A hereto, constitutes the full and entire understanding and agreement of the parties with respect to the subject matter hereof and thereof and supersedes any and all prior understandings or agreements relating to the subject matter hereof and thereof. If applicable, this Agreement does not modify or affect the rights or benefits of any Stockholder under any employment agreement between such Stockholder and the Company, as amended through the date of this Agreement.

 

13.          Mutual Drafting.

 

Each party hereto has participated in the drafting of this Agreement, which each party acknowledges is the result of extensive negotiations between the parties.

 

14.          Section Headings.

 

The section headings of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement.

 

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15.          Counterparts.

 

This Agreement may be executed in one or more counterparts and by different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original but all which shall constitute one and the same agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the undersigned hereby agree to be bound by the terms and provisions of this Voting Agreement as of the date first above written.

 

 

	
 
    	
JLL JGW   DISTRIBUTION, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Paul S. Levy
    
	
 
    	
 
    	
Name:   Paul S. Levy
    
	
 
    	
 
    	
Title:   Authorized Person
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JGW   HOLDCO, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Miller
    
	
 
    	
 
    	
Name:   David Miller
    
	
 
    	
 
    	
Title:   Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PGHI   CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   James D. Terlizzi
    
	
 
    	
 
    	
Name:   James D. Terlizzi
    
	
 
    	
 
    	
Title:   Chief Executive Officer
    

 

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/s/ David Miller
    
	
 
    	
David Miller
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Randi K. Sellari
    
	
 
    	
Randi K. Sellari
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Stefano Sola
    
	
 
    	
Stefano   Sola
    

 

[Signature Page to Voting Agreement]

 

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SCHEDULE A

 

STOCKHOLDERS

 

	
Stockholder
    	
 
    	
Subject Shares
    
	
JLL JGW   Distribution, LLC

 

c/o JLL   Partners

450   Lexington Avenue, Suite 3350

31st Floor

New   York, NY 10017

Telephone:   (212) 210-9300

Fax:   (212) 286-8626
    	
 
    	
945,151   Class B Shares and any Class A Shares obtained by exchanging such   Class B Shares for Class A Shares

 

1,500,000   Class A Shares
    
	
 
    	
 
    	
 
    
	
JGW   Holdco, LLC

 

c/o JLL   Partners

450   Lexington Avenue, Suite 3350

31st Floor

New   York, NY 10017

Telephone:   (212) 210-9300

Fax:   (212) 286-8626
    	
 
    	
8,400,024   Class B Shares and any Class A Shares obtained by exchanging such   Class B Shares for Class A Shares
    
	
 
    	
 
    	
 
    
	
PGHI   Corp.

 

6465 E.   Johns Crossing

Suite 200

Johns   Creek, GA 30097
    	
 
    	
All   Class A Shares issuable upon exercise of warrants dated as of   November 14, 2013.

 

All   Class A Shares issuable upon conversion of any of the 4,360,623   Class C Shares issuable upon exchange of Non-Voting Common Interests of   JGWPT Holdings, LLC
    
	
 
    	
 
    	
 
    
	
David   Miller

 

c/o   JGWPT Holdings Inc.

201   King of Prussia Road, Suite 501
   Radnor, PA 19087
    	
 
    	
523,402   Class B Shares and any Class A Shares obtained by exchanging such   Class B Shares for Class A Shares
    

 

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Randi K. Sellari

 

c/o JGWPT Holdings Inc.

201   King of Prussia Road, Suite 501
   Radnor, PA 19087
    	
 
    	
426,332   Class B Shares and any Class A Shares obtained by exchanging such   Class B Shares for Class A Shares
    
	
 
    	
 
    	
 
    
	
Stefano Sola

 

c/o JGWPT Holdings Inc.

201   King of Prussia Road, Suite 501
   Radnor, PA 19087
    	
 
    	
206,116   Class B Shares and any Class A Shares obtained by exchanging such   Class B Shares for Class A Shares
    

 

12Exhibit 4.5

 

DIRECTOR DESIGNATION AGREEMENT

 

This DIRECTOR DESIGNATION AGREEMENT, dated as of November 14, 2013 (this “Agreement”), is entered into by and between JGWPT Holdings Inc., a Delaware corporation (“JGWPT Inc.”), PGHI Corp., a Delaware corporation (“PGHI”), and JLL JGW Distribution, LLC, a Delaware limited liability company, and JGW Holdco, LLC, a Delaware limited liability company (together, the “JLL Holders”).

 

RECITALS

 

WHEREAS, JGWPT Inc. is contemplating an offer and sale of shares of its Class A common stock, par value $ 0.00001 per share (the “Class A Shares”), to the public in an underwritten initial public offering pursuant to a registration statement on Form S-1 (333-191585) (the “Initial Public Offering”); and

 

WHEREAS, prior to the execution of this Agreement, JGWPT Inc. will become the managing member of JGWPT Holdings, LLC, a Delaware limited liability company that is majority owned by the JLL Holders (“JGWPT LLC”) and PGHI, pursuant to that certain Amended and Restated Limited Liability Company Agreement of JGWPT LLC, as it may be amended, supplemented or otherwise modified from time to time (the “LLC Agreement”); and

 

WHEREAS, JGWPT Inc. wishes to agree to permit the JLL Holders and PGHI to designate a certain number of persons for nomination to the Board of Directors of JGWPT Inc. (the “Board”) on the terms and subject to the conditions set forth herein.

 

NOW, THEREFORE, in consideration of the covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, JGWPT Inc., PGHI, and the JLL Holders agree as follows:

 

1.             Nominee Designation

 

1.1          Designation Right.

 

(a)           So long as JLL (as defined below) holds in the aggregate, at least 934,488 limited liability company membership interests designated as “Common Interests” of JGWPT LLC (“JGWPT Holdings LLC Common Interests”) or at least 20% of the aggregate number of JGWPT Holdings LLC Common Interests then held by members of JGWPT Holdings, LLC who were members of JGWPT Holdings LLC (or its predecessor of the same name) on July 12, 2011, then JLL shall have the right to designate four (4) persons for appointment or nomination, as the case may be, for election to the Board (each, a “JLL Designee”), as specified in Section 1.2(a).  For purposes of this Agreement, “JLL” means the JLL Holders, JLL Fund V AIF I, LP, a Delaware limited partnership, JLL Fund V AIF II, LP, a Delaware limited partnership, any other private equity investment partnership or private equity pooled investment vehicle sponsored or managed by JLL Partners, Inc., or any affiliate of any of the foregoing (including JLL Partners, Inc.).

 

 

(b)           So long as PGHI (together with its then-current stockholders) or the PGHI Director Assignee (as defined below), as applicable, holds in the aggregate no fewer than 436,104 JGWPT Holdings LLC Common Interests, including those denominated as “Non-Voting Common Interests,” then PGHI or the PGHI Director Assignee shall have the right to designate one (1) person for appointment or nomination, as the case may be, for election to the Board (the “PGHI Designee”).  The PGHI Designee shall be the designee of (i) PGHI, (ii) any Permitted Transferee of PGHI to which PGHI Transfers at least 872,136 JGWPT Holdings LLC Common Interests, or (iii) DLJ Merchant Banking Partners IV, L.P. (“DLJMB Main Fund”), as long as DLJMB Main Fund collectively holds, directly or indirectly, at least 872,136 Common Interests and (in the case of (ii) and (iii)) to which PGHI assigns its right to designate a member of the Board of Directors of the Company (a “PGHI Director Assignee”).  As used herein, the terms “Permitted Transferee” and “Transfer” have the meanings ascribed to them in the LLC Agreement.

 

1.2          Specific Designees.

 

(a)           JLL shall be permitted to designate for appointment or nomination, as the case may be, for election to the Board four (4) JLL Designees, who shall initially be as follows:

 

	
Designees
    	
 
    	
Class
    
	
Alexander   Castaldi
    	
 
    	
Class I
    
	
Kevin   Hammond
    	
 
    	
Class II
    
	
Paul   S. Levy
    	
 
    	
Class III
    
	
Frank   Rodriguez
    	
 
    	
Class III
    

 

provided that Section 5.4 shall not apply to Section 1.2 of this Agreement; provided, further, that JLL shall have the right to amend, modify or supplement its original JLL Designees without the consent of JGWPT Inc.

 

(b)           PGHI shall be permitted to designate for appointment or nomination, as the case may be, for election to the Board one (1) PGHI Designee who shall initially be Neal Pomroy in Class I; provided that Section 5.4 shall not apply to Section 1.2 of this Agreement; provided, further, that PGHI shall have the right to amend, modify or supplement its original PGHI Designee without the consent of JGWPT Inc.

 

(c)           At every meeting of the Board, or a committee thereof, for which directors are appointed or are nominated to stand for election by stockholders of JGWPT Inc., JLL and PGHI (or the PGHI Director Assignee) will have the right to designate those persons to be appointed or nominated, as the case may be, for election to the Board for each director whose term expires at the next annual meeting of stockholders of JGWPT Inc. pursuant to the terms of the Amended and Restated Certificate of Incorporation of JGWPT Inc. (as it may be amended, supplemented, or otherwise modified from time to time, the “Certificate of Incorporation”), and who was a prior Designee of JLL or PGHI (or the PGHI Director Assignee), as applicable, in accordance with this Section 1.

 

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1.3          No Assignment Right. The designation rights of JLL under this Section 1 are not assignable, except in accordance with Section 5.3.  The designation rights of PGHI under this Section 1 are not assignable, except as set forth in Section 1.1(b) with respect to the PGHI Director Assignee and in accordance with Section 5.3.

 

1.4          Obligations of JGWPT Inc.

 

(a)           For so long as JLL and PGHI (or the PGHI Director Assignee) have the right to designate directors hereunder, JGWPT Inc. agrees to cause each JLL Designee and the PGHI Designee, as applicable, to be included in the director nominations of the Board submitted to JGWPT Inc.’s stockholders for election of directors and in the proxy statement prepared by management in connection with soliciting proxies for every meeting of JGWPT Inc.’s stockholders called with respect to the election of members of the Board.

 

(b)           Notwithstanding anything herein to the contrary, JGWPT Inc. shall not be obligated to cause to be nominated for election to the Board or recommend to the stockholders the election of any JLL Designee or PGHI Designee (i) who fails to submit to JGWPT Inc. such questionnaires as JGWPT Inc. may reasonably require of its directors generally, or (ii) the Board or any duly appointed nominating committee determines in good faith, after consultation with outside legal counsel, that such action would constitute a breach of its fiduciary duties or applicable law; provided, however, that upon the occurrence of either (i) or (ii) above, JGWPT Inc. shall promptly notify the JLL Holders or PGHI, as applicable, in writing of the occurrence of such event and permit JLL or PGHI, as applicable, to provide an alternate JLL Designee or PGHI Designee, as applicable, sufficiently in advance of any Board action, the meetings of the stockholders called or written action of stockholders with respect to such election of nominees and JGWPT Inc. shall be subject to its obligations under Section 1.4(a) with respect to such alternate designee.

 

(c)           At any time a vacancy occurs because of the death, disability, resignation or removal of a JLL Designee or PGHI Designee, then the Board, or any committee thereof, will not vote, fill such vacancy or take any action until such time that (i) JLL or PGHI (or the PGHI Director Assignee), as applicable, has designated a successor designee and the Board has filled the vacancy and appointed such successor designee, (ii) JLL or PGHI (or the PGHI Director Assignee), as applicable, fails to designate a successor designee within thirty (30) days of such vacancy, or (iii) JLL or PGHI (or the PGHI Director Assignee), as applicable, has specifically waived its rights to designate a successor designee under this Agreement and has consented to the Board, or any committee thereof, taking a vote on such enumerated actions prior to the Board filling the vacancy with a successor designee. In the case of 1.4(c)(i), JLL or PGHI (or the PGHI Director Assignee), as applicable, shall have the right to fill such vacancy with a successor Designee in either Class I, Class II or Class III of the Board, so long as the class selected has a vacancy at the time a successor designee is provided by JLL or PGHI (or the PGHI Director Assignee), as applicable, subject to the requirements of applicable law and the rules of the national securities exchange on which the securities of JGWPT Inc. are then listed or trading.

 

(d)           At any time that JLL shall have the right to designate at least one Designee under this Section 1, JGWPT Inc. shall not take any action in accordance with the Certificate of 

 

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Incorporation or By-laws to change the size of the Board without the prior written consent of the JLL Holders.

 

2.             Specific Performance. Each of the parties to this Agreement acknowledges that each party hereto will be irreparably damaged if any of the provisions of this Agreement are not performed in accordance with their specific terms or are otherwise breached. Accordingly, it is agreed that each of JGWPT Inc., PGHI, and the JLL Holders shall be entitled to an injunction to prevent breaches of this Agreement and to specific enforcement of this Agreement and its terms and provisions in any action instituted in any court of the United States or any state having subject matter jurisdiction, in addition to any other remedy to which the parties hereto may be entitled at law or in equity. Each of the parties hereto hereby consents to personal jurisdiction in any such action brought in the United States District Court for the District of Delaware or in any court of the State of Delaware having subject matter jurisdiction. No bond or other similar undertaking shall be required of any party seeking relief under this Section.

 

3.             Covenant of JGWPT Inc. JGWPT Inc. agrees that neither it nor any of its subsidiaries shall enter into any agreement or understanding or make any commitment to any person, or otherwise take any action, that would violate or be inconsistent with any provision or agreement contained in this Agreement.

 

4.             Termination.  This Agreement shall terminate and be of no further force or effect at such time as JLL and PGHI no longer have any right to designate any director of JGWPT Inc. hereunder.

 

5.             Miscellaneous.

 

5.1                               Governing Law. This Agreement shall be governed by and construed in all respects in accordance with the laws of the State of Delaware without giving effect to principles of conflicts of law.

 

5.2                               Notices. All notices, demands or other communications to be given under or by reason of this Agreement shall be in writing and shall be delivered by hand or sent by facsimile or electronic transmission or sent by overnight courier service and shall be deemed given when received, as follows:

 

 

	
If   to JGWPT Inc.:
    	
 
    	
If   to JLL Holders:
    
	
JGWPT   Holdings Inc.
    	
 
    	
JLL   JGW Distribution, LLC
    
	
201   King of Prussia Road, Suite 501
    	
 
    	
c/o   JLL Partners, Inc.
    
	
Radnor,   PA 19087-5148
    	
 
    	
450   Lexington Avenue, 31st Floor
    
	
Attention:   Stephen Kirkwood, Esq.
    	
 
    	
New   York, NY 10017
    
	
Fax:   (484) 434-2351
    	
 
    	
Attention:   Frank Rodriguez
    
	
 
    	
 
    	
Fax:   (212) 286 8626
    
	
 
    	
 
    	
 
    
	
with a copy to:
    	
 
    	
with a copy to:
    
	
Skadden,   Arps, Slate, Meagher & Flom LLP
    	
 
    	
Skadden,   Arps, Slate, Meagher & Flom LLP
    
	
920   N. King Street
    	
 
    	
920   N. King Street
    
	
Wilmington,   DE 19801
    	
 
    	
Wilmington,   DE 19801
    

 

4

 

	
Attention:   Steven J. Daniels, Esq.
    	
 
    	
Attention:   Steven J. Daniels, Esq.
    
	
Fax:   (302) 651-3001
    	
 
    	
Fax:   (302) 651-3001
    
	
 
    	
 
    	
 
    
	
Reed   Smith LLP

1650   Market Street, Suite 2500

Philadelphia,   Pennsylvania  19103

Attn:  Lori L. Lasher, Esq.

Telephone:   (215) 851-8136

Fax:  (215) 851-1420
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
If   to PGHI Corp:
    	
 
    	
 
    
	
PGHI   Corp.
    	
 
    	
 
    
	
6465   E. Johns Crossing, Suite 200 
    	
 
    	
 
    
	
Johns   Creek, GA  30097
    	
 
    	
 
    
	
Attention:   Craig Lessner, Esq.
    	
 
    	
 
    
	
E-mail: craiglessner@gmail.com
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
with a copy to:
    	
 
    	
 
    
	
Shearman &   Sterling LLP
    	
 
    	
 
    
	
599   Lexington Avenue
    	
 
    	
 
    
	
New   York, NY 10022
    	
 
    	
 
    
	
Attention:   Stephen M. Besen, Esq.
    	
 
    	
 
    
	
Fax:   (646) 848-8902
    	
 
    	
 
    

 

Any party to this Agreement may change its address for notices, demands, and other communications under this Agreement by giving notice of such change to the other party hereto in accordance with this Section 5.2.

 

5.3          Benefit of Parties.

 

(a)           This Agreement may not be assigned by JGWPT Inc. except with the prior written consent of all other parties to this Agreement.

 

(b)           Nothing herein contained shall confer or is intended to confer on any third party or entity that is not a party to this Agreement, other than JLL, any rights under this Agreement.

 

5.4          Amendment. This Agreement may not be amended, modified, altered, or supplemented except by means of a written instrument executed on behalf of JGWPT Inc., PGHI, and the JLL Holders.

 

5.5          Waiver. No failure on the part of either party hereto to exercise any power, right, privilege, or remedy under this Agreement, and no delay on the part of either party hereto in exercising any power, right, privilege or remedy under this Agreement, shall operate as a waiver thereof; and no single or partial exercise of any such power, right, privilege, or remedy shall preclude any other or further exercise thereof or of any other power, right, privilege, or remedy.

 

5

 

5.6          Severability. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

 

5.7          Entire Agreement. This Agreement sets forth the entire understanding of parties hereto and supersedes all other agreements and understandings between the parties hereto relating to the subject matter hereof.

 

5.8          Counterparts and Facsimiles. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other. The parties hereto may execute the signature pages hereof and exchange such signature pages by facsimile or electronic transmission.

 

5.9          Interpretation of Agreement.

 

(a)           As used in this Agreement, the words “include” and “including,” and variations thereof, shall not be deemed to be terms of limitation, and shall be deemed to be followed by the words “without limitation.”

 

(b)           Unless otherwise specified, references in this Agreement to “Sections” are intended to refer to Sections of this Agreement.

 

(c)           The Section headings contained in this Agreement are solely for the purpose of reference, are not part of the agreement of the parties and shall not in any way affect the meaning or interpretation of this Agreement.

 

(d)           Each party hereto and its counsel cooperated in drafting and preparation of this Agreement. Any rule of law or any legal decision that would require interpretation of any ambiguities in this Agreement against the party that drafted it is of no application and is hereby expressly waived.

 

[Signature page follows.]

 

6

 

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

 

 

	
 
    	
JGWPT HOLDINGS INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Randi K. Sellari
    
	
 
    	
 
    	
Name:   Randi K. Sellari
    
	
 
    	
 
    	
Title:   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JLL JGW DISTRIBUTION, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Paul S. Levy
    
	
 
    	
 
    	
Name:   Paul S. Levy
    
	
 
    	
 
    	
Title:   Authorized Person
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JGW HOLDCO, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Miller
    
	
 
    	
 
    	
Name:   David Miller
    
	
 
    	
 
    	
Title:   Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PGHI CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   James D. Terlizzi
    
	
 
    	
 
    	
Name:   James D. Terlizzi
    
	
 
    	
 
    	
Title:   Chief Executive Officer
    

 

Signature Page — Director Designation Agreement

 

7

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