Document:

Exhibit 10.9

 

FORM OF

 

SUSSER PETROLEUM PARTNERS LP

2012 LONG TERM INCENTIVE PLAN

 

PHANTOM UNIT AGREEMENT

 

This Phantom Unit Agreement (this “Agreement”) is made and entered into by and between Susser Petroleum Partners GP LLC, a Delaware  limited liability company (the “Company”), and the individual to whom the corresponding Grant (as hereinafter defined) is made (the “Service Provider”).  This Agreement is entered into as of the day set forth in the Grant Award Notification Letter (the “Date of Grant”).  Capitalized terms used in this Agreement but not otherwise defined herein shall have the meanings ascribed to such terms in the Plan (as defined below), unless the context requires otherwise.

 

W I T N E S S E T H:

 

WHEREAS, the Company has adopted the Susser Petroleum Partners LP 2012 Long Term Incentive Plan (the “Plan”) to attract, retain and motivate employees, officers, directors and consultants; and

 

WHEREAS, the Board of Directors of the Company (the “Board”) has authorized the grant to employees and officers of phantom units of the Company and its affiliates as part of their compensation for direct services provided to the Partnership.

 

NOW, THEREFORE, in consideration of the Service Provider’s agreement to provide or to continue providing services, the Service Provider and the Company agree as follows:

 

SECTION 1.           Grant.

 

The Company hereby grants to the Service Provider as of the Date of Grant an award of the number of Phantom Units as set forth in the Grant Award Notification Letter delivered to the Service Provider, subject to the terms and conditions set forth in this Agreement, including, without limitation, those restrictions described in Section 2 and the Grant Award Notification Letter, whereby each Phantom Unit represents the right to receive one Unit of Susser Petroleum Partners LP (the “Partnership”) (each, a “Phantom Unit”) upon vesting.  The Company shall establish and maintain a bookkeeping account on its records for the Service Provider (a “Phantom Unit Account”) and shall record in such Phantom Unit Account (a) the number of Phantom Units granted to the Service Provider, and (b) the number of Units deliverable to the Service Provider on account of Phantom Units that have vested.  No Units shall be issued to the Service Provider at the time the grant is made and the Service Provider shall not be, nor have any of the rights and privileges of, a unit holder or limited partner of the Partnership with respect to any Phantom Units recorded in the Phantom Unit Account.  The Service Provider shall not have any interest in any fund or specific assets of the Partnership by reason of this Award or the Phantom Unit Account established for the Service Provider.

 

 

SECTION 2.           Vesting; Expiration of Restrictions and Risk of Forfeiture.

 

The Phantom Units are restricted in that they may be forfeited to the Company and in that they may not, except as otherwise provided in Section 6, be transferred or otherwise disposed of by the Service Provider.  Subject to the terms and conditions of this Agreement, the forfeiture restrictions on the Phantom Units shall lapse, and the Phantom Units shall vest according to the schedule included in the Grant Award Notification Letter; provided, however, that such restrictions will lapse, and the Phantom Units shall vest in accordance with the foregoing provision only if the Service Provider has been an employee of the Company, the Partnership, or any other entity which is an affiliate (within the meaning of such term under the Exchange Act and the rules promulgated thereunder) of any of the foregoing entities (collectively, the “Partnership Entities”) continuously from the Date of Grant until the date of vesting.

 

SECTION 3.           Change in Control.

 

Notwithstanding Section 2 of this Agreement, in the event of a Change in Control occurring prior to the date all Phantom Units have vested in accordance with Section 2 above, all restrictions described in Section 2 shall lapse and all Phantom Units granted pursuant to this Agreement shall become immediately vested and nonforfeitable and the Company shall deliver the Units (or the amount of cash, other property or securities, if any, equal to the amount that would have been attained by the Service Provider if he were a unit holder as of the date of the occurrence of such event) to the Service Provider as soon as practicable thereafter.

 

SECTION 4.           Termination of Employment.

 

(a)           Termination for Any Reason.   If the Service Provider ceases providing services to the Partnership Entities for any reason other than the Service Provider’s death or Disability (as defined below) prior to the date all Phantom Units have vested in accordance with Section 2 above, then all Phantom Units granted pursuant to this Agreement that have not yet vested shall become null and void as of the date of such termination.

 

(b)           Termination Due to Death or Disability.  If the Service Provider ceases providing services to the Partnership Entities due to death or Disability prior to the date all Phantom Units have vested in accordance with Section 2 above, then all restrictions described in Section 2 shall lapse and all Phantom Units granted pursuant to this Agreement shall become immediately vested and nonforfeitable and the Company shall deliver Units to the Service Provider as soon as practicable thereafter, but in no event later than 60 days following the separation from service.

 

“Disability” means that the Service Provider is unable to engage in substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.

 

(c)             Proscribed Conduct.  Notwithstanding anything to the contrary set forth in the Plan or this Agreement, except as otherwise set forth in an employment agreement between the Service Provider and the Company or any of its subsidiaries, in the event a Service Provider who is also an employee of the Company or any subsidiary of affiliate, engages in Proscribed Conduct after the termination of his service for any reason, such Service Provider shall forfeit all Units the Service Provider acquired upon settlement of any Phantom Units.  To the extent such

 

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Service Provider disposed of any such Units prior to such forfeiture, the Company shall be entitled to the Fair Market Value of such Units at the time of the disposition.

 

“Proscribed Conduct” means a breach by a Service Provider of any restrictive covenants contained in any employment agreement between the Service Provider and the Company or any subsidiary, or if there are no such covenants or any such covenants are inapplicable for any reason, then “Proscribed Conduct” means, during the one-year period following termination of service, a Service Provider’s (a) unauthorized disclosure of confidential information related to the Company or its subsidiaries, (b) directly or indirectly engaging in, or owning or controlling any interest in, or acting as a director, officer or employer of, or consultant to or otherwise be employed by any business engaged in the operation of wholesale fuel distribution or any other business conducted by the Company or the Partnership in any county in which the Company operates on the date of such Service Provider’s termination of service, (c) hiring, directly or indirectly, any individual who was an employee of the Company or its subsidiaries or affiliates within the 12 months period prior to the date the Service Provider employs or seeks to employ such individual, or soliciting or inducing, directly or indirectly, any such individual to terminate his or her service with the Company, or its subsidiaries or affiliates, or (d) causing, inducing or encouraging any actual or prospective client, customer, supplier, dealer or licensor of the Company or the Partnership or any other person or entity that has a business relationship with the Company, the Partnership or any subsidiary or affiliate, to terminate or modify any such actual or prospective relationship.

 

SECTION 5.           Delivery/Payment Date; Manner of Payment.

 

The date or dates of delivery of the Units related to the Service Provider’s Phantom Units will be date or dates on which the restrictions on such Phantom Units expire as provided in Section 2, 3 or 4 of this Agreement.  The value of any fractional Phantom Units shall be paid in cash at the time Units are issued to the Service Provider in connection with the Phantom Units.  The value of the fractional Phantom Units shall equal the percentage of a Unit represented by a fractional Phantom Unit multiplied by the Fair Market Value of the Unit.  The value of such Units shall not bear any interest owing to the passage of time.

 

SECTION 6.           Limitations on Transfer.

 

The Service Provider agrees that he shall not dispose of (meaning, without limitation, sell, transfer, pledge, exchange, hypothecate or otherwise dispose of) any Phantom Units hereby acquired prior to the date the Phantom Units are vested and Units are delivered.  Any attempted disposition of the Phantom Units in violation of the preceding sentence shall be null and void.  Notwithstanding the foregoing, part or all of the Phantom Units or rights under this Agreement may be transferred to a spouse pursuant to a domestic relations order issued by a court of competent jurisdiction; provided, however, that such Phantom Units shall continue to be held pursuant to this Agreement, and the transferee under the domestic relations order shall agree that the Phantom Units so transferred shall continue to be subject to the terms of this Agreement, including forfeiture in accordance with Sections 2 and 4 of this Agreement.

 

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SECTION 7.           Nontransferability of Agreement.

 

This Agreement and all rights under this Agreement shall not be transferable by the Service Provider other than by will or pursuant to applicable laws of descent and distribution.  Any rights and privileges of the Service Provider in connection herewith shall not be transferred, assigned, pledged or hypothecated by the Service Provider or by any other person or persons, in any way, whether by operation of law, or otherwise, and shall not be subject to execution, attachment, garnishment or similar process.  In the event of any such occurrence, the Phantom Units shall automatically be forfeited.  Notwithstanding the foregoing, all or some of the Phantom Units or rights under this Agreement may be transferred to a spouse pursuant to a domestic relations order issued by a court of competent jurisdiction, subject to the limitations on such transfer described in Section 6.

 

SECTION 8.           Adjustment.

 

The number of Phantom Units granted to the Service Provider pursuant to this Agreement shall be adjusted to reflect distributions of the Partnership paid in units, unit splits or other changes in the capital structure of the Partnership, all in accordance with the Plan.  All provisions of this Agreement shall be applicable to such new or additional or different units or securities distributed or issued pursuant to the Plan to the same extent that such provisions are applicable to the units with respect to which they were distributed or issued.

 

SECTION 9.           Securities Act.

 

The Company shall not be required to deliver any Units hereunder if, in the opinion of counsel for the Company, such delivery would violate the Securities Act of 1933 or any other applicable federal or state securities laws or regulations or the rules of the exchange upon which the Company’s Units are traded.

 

SECTION 10.          Copy of Plan.

 

By the execution of this Agreement, the Service Provider acknowledges receipt of a copy of the Plan.  If any provision of this Agreement is held to be illegal, invalid or unenforceable under any applicable law, then such provision will be deemed to be modified to the minimum extent necessary to render it legal, valid and enforceable; and if such provision cannot be so modified, then this Agreement will be construed as if not containing the provision held to be invalid, and the rights and obligations of the parties will be construed and enforced accordingly.

 

SECTION 11.         Notices.

 

Whenever any notice is required or permitted hereunder, such notice must be in writing and personally delivered or sent by mail.  Any such notice required or permitted to be delivered hereunder shall be deemed to be delivered on the date on which it is personally delivered or, whether actually received or not, on the third business day (on which banking institutions in the State of Texas are open) after it is deposited in the United States mail, certified or registered, postage prepaid, addressed to the person who is to receive it at the address which such person has theretofore specified by written notice delivered in accordance herewith.  The Company or the Service Provider may change at any time and from time to time by written notice to the other, the address which it or he previously specified for receiving notices.  The Company and the Service

 

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Provider agree that any notices shall be given to the Company or to the Service Provider at the following addresses:

 

Company:                                                                                                                     Susser Petroleum Partners GP LLC
 Human Resources Department
 4525 Ayers Street
 Corpus Christi, Texas 78415

 

Service Provider:                                                                                 At the Service Provider’s current address as shown in the Company’s records.

 

SECTION 12.                          General Provisions.

 

(a)           Administration.  This Agreement shall at all times be subject to the terms and conditions of the Plan.  The Committee shall have sole and complete discretion with respect to all matters reserved to it by the Plan and decisions of the majority of the Committee with respect thereto and with respect to this Agreement shall be final and binding upon the Service Provider and the Company.  In the event of any conflict between the terms and conditions of this Agreement and the Plan, the provisions of the Plan shall control.

 

(b)           Continuation of Service.  This Agreement shall not be construed to confer upon the Service Provider any right to continue in the service of the Partnership Entities.

 

(c)           Governing Law.  This Agreement shall be interpreted and administered under the laws of the State of Delaware, without giving effect to any conflict of laws provisions.

 

(d)           Amendments.  This Agreement may be amended only by a written agreement executed by the Company and the Service Provider, except that the Committee may unilaterally waive any conditions or rights under, amend any terms of, or alter this Agreement provided no such change (other than pursuant to Section 7(b), 7(c), 7(d), 7(e), or 7(g) of the Plan) materially reduces the rights or benefits of the Service Provider with respect to the Phantom Units without his consent.

 

(e)           Binding Effect.  This Agreement shall be binding upon and inure to the benefit of any successor or successors of the Company and upon any person lawfully claiming under the Service Provider.

 

(f)            Entire Agreement.  This Agreement constitutes the entire agreement of the parties with regard to this subject matter hereof, and contains all the covenants, promises, representations, warranties and agreements between the parties with respect to the Phantom Units granted hereby.  Without limiting the scope of the preceding sentence, all prior understandings and agreements, if any, among the parties hereto relating to the subject matter hereof are hereby null and void and of no further force and effect.

 

(g)           No Liability for Good Faith Determinations.  Neither the Partnership Entities nor the members of the Committee and the Board shall be liable for any act, omission or

 

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determination taken or made in good faith with respect to this Agreement or the Phantom Units granted hereunder.

 

(h)           No Guarantee of Interests.  The Board and the Partnership Entities do not guarantee the Units from loss or depreciation.

 

(i)            Withholding Taxes.  To the extent that the vesting of a Phantom Unit or distribution thereon results in the receipt of compensation by the Service Provider with respect to which any of the Partnership Entities has a tax withholding obligation pursuant to applicable law, unless other arrangements have been made by the Service Provider that are acceptable to such Partnership Entity, the Service Provider shall deliver to the Partnership Entity such amount of money as the Partnership Entity may require to meet its withholding obligations under applicable law.  No issuance of a Unit shall be made pursuant to this Agreement until the Service Provider has paid or made arrangements approved by the Partnership Entity to satisfy in full the applicable tax withholding requirements of the Partnership Entity with respect to such event.

 

(j)            Insider Trading Policy.  The terms of the Company’s Insider Trading Policy with respect to Units are incorporated herein by reference.

 

[SIGNATURE PAGE TO FOLLOW]

 

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its officer thereunto duly authorized, and the Service Provider has set his hand as to the date and year first above written.

 

	
 
    	
SUSSER PETROLEUM PARTNERS GP LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[SERVICE   PROVIDER NAME]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Service   Provider
    

 

7Exhibit 10.23

 

VOTING AGREEMENT

 

By and Among

 

99 CENTS ONLY STORES,

 

NUMBER HOLDINGS, INC.

 

AND

 

ACOF III NUMBER HOLDINGS, LLC

 

 

Dated as of January 13, 2012

 

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
Restrictions   on Transfers by the Investor Stockholder
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
Transfer   of Class B Common Stock
    	
1
    
	
 
    	
 
    	
 
    
	
 
    	
2.1
    	
Forced   Transfer of Class B Common Stock
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
2.2
    	
Class B   Common Stock Purchase Price
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
Election   of Directors
    	
2
    
	
 
    	
 
    	
 
    
	
4.
    	
Stock   Certificate Legend
    	
3
    
	
 
    	
 
    	
 
    
	
5.
    	
Covenants:   Representations and Warranties
    	
3
    
	
 
    	
 
    	
 
    
	
 
    	
5.1
    	
No   Other Arrangements or Agreements
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
5.2
    	
Additional   Representations and Warranties
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
Taxes
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
7.
    	
Amendment   and Modification
    	
4
    
	
 
    	
 
    	
 
    
	
8.
    	
Parties
    	
4
    
	
 
    	
 
    	
 
    
	
 
    	
8.1
    	
Assignment   by Parent
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
8.2
    	
Assignment   Generally
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
8.3
    	
Termination
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
8.4
    	
Agreements   to Be Bound
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
9.
    	
Recapitalizations,   Exchanges, etc.
    	
5
    
	
 
    	
 
    	
 
    
	
10.
    	
No   Third Party Beneficiaries
    	
5
    
	
 
    	
 
    	
 
    
	
11.
    	
Further   Assurances
    	
5
    
	
 
    	
 
    	
 
    
	
12.
    	
Governing   Law: Submission to Jurisdiction
    	
5
    
	
 
    	
 
    	
 
    
	
13.
    	
Invalidity   of Provision
    	
6
    
	
 
    	
 
    	
 
    
	
14.
    	
Waiver
    	
6
    
	
 
    	
 
    	
 
    
	
15.
    	
Notices
    	
6
    
	
 
    	
 
    	
 
    
	
16.
    	
Headings
    	
7
    
	
 
    	
 
    	
 
    
	
17.
    	
Counterparts
    	
7
    
	
 
    	
 
    	
 
    
	
18.
    	
Injunctive   Relief
    	
8
    
	
 
    	
 
    	
 
    
	
19.
    	
Trial   by Jury
    	
8
    
	
 
    	
 
    	
 
    
	
20.
    	
Defined   Terms
    	
8
    
	
 
    	
 
    	
 
    
	
Schedule   A
    	
Capitalization
    	
 
    

 

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VOTING AGREEMENT

 

THIS VOTING AGREEMENT, dated as of January 13, 2012 (this “Agreement”), by and among 99 Cents Only Stores, a California corporation (the “Company”), Number Holdings, Inc., a Delaware corporation (“Parent”), and ACOF III Number Holdings, LLC, a Delaware limited liability company (the “Investor Stockholder” and together with Parent, the “Stockholders”).  Capitalized terms used herein without definition are defined in Section 21.

 

WHEREAS, the Company entered into a certain Agreement and Plan of Merger, dated as of October 11, 2011, by and among Parent, Number Merger Sub, Inc., a California corporation (“Merger Sub”), and the Company (as the same may be amended, modified, supplemented or restated from time to time, the “Merger Agreement”), providing for, among other things, the merger of Merger Sub with and into the Company, with the Company as the surviving corporation (the “Merger”);

 

WHEREAS, in connection with the Merger, the Company filed an Amended and Restated Certificate of Incorporation of the Company with the Secretary of State of the State of California authorizing shares of Class A common stock of the Company, par value $0.01 per share (the “Class A Common Stock”) and shares of Class B common stock of the Company, par value $0.01 per share (the “Class B Common Stock” and, together with the Class A Common Stock, the “Common Stock”);

 

WHEREAS, immediately after the Effective Time (as defined in the Merger Agreement), the issued and outstanding capital stock of the Company will consist of (a)   100 shares of Class A Common Stock and (b) 100 shares of Class B Common Stock;

 

WHEREAS, the initial amount of Common Stock held by each of the Stockholders as of the date hereof is set forth on Schedule A opposite such Stockholder’s name; and

 

WHEREAS, concurrently herewith, Parent, the Investor Stockholder and certain other parties are entering into the Parent Stockholders Agreement.

 

NOW, THEREFORE, in consideration of the mutual agreements contained herein, and further, in the case of the Investor Stockholder, in consideration of the mutual agreements contained in the Parent Stockholders Agreement, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             Restrictions on Transfers by the Investor Stockholder.  No shares of Class B Common Stock now or hereafter owned by the Investor Stockholder, nor any interest therein nor any rights relating thereto, may be Transferred, except (a) pursuant to Section 2.1, (b) with the prior written consent of Parent, such consent to be in Parent’s sole discretion or (c) to a 

 

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controlled Affiliate of the Investor Stockholder, provided that (i) such controlled Affiliate complies with the requirements of Section 8.4 and (ii) the Investor Stockholder shall notify the Parent in writing prior to such Transfer.

 

2.             Transfer of Class B Common Stock.

 

2.1          Forced Transfer of Class B Common Stock.  Parent shall have the right (the “Class B Call Right”), but not the obligation, to acquire from the Investor Stockholder, at any time, all (but not less than all) of such Investor Stockholder’s shares of Class B Common Stock, and the Investor Stockholder shall have the obligation, upon Parent’s exercise of such right, to transfer to Parent, all of such Investor Stockholder’s shares of Class B Common Stock, at a price per share of Class B Common Stock equal to the Class B Common Stock Purchase Price (as defined in Section 2.2); provided that, so long as CPPIB (as defined in the Parent Stockholders Agreement) is a stockholder of Parent, the prior written consent of CPPIB shall be required prior to any exercise of the Class B Call Right by Parent (other than any such exercise after commencement of foreclosure or exercise of other remedies with respect to the equity interests of Parent by a secured party (or any agent, trustee or other representative on behalf thereof)) pursuant to this Section 2.1.  If Parent desires to acquire shares of Class B Common Stock from the Investor Stockholder pursuant to this Section 2.1, it shall notify the Investor Stockholder thereof in writing; provided that such notice may be revocable or conditional or both.  The closing of the purchase of such shares of Class B Common Stock from the Investor Stockholder shall take place at the offices of the Investor Stockholder on such date as Parent and the Investor Stockholder shall mutually agree.  Payment for any shares of Class B Common Stock acquired by Parent pursuant to this Section 2.1 shall be made on the date of closing.  Parent shall receive representations and warranties from the Investor Stockholder that such Investor Stockholder has good and marketable title to such shares to be transferred, free and clear of all liens, claims and other encumbrances incurred by the Investor Stockholder, other than those created pursuant to any financing agreement to which Parent or the Company is party, and no other representations and warranties.

 

2.2          Class B Common Stock Purchase Price. Unless otherwise agreed to by the Investor Stockholder and Parent, the “Class B Common Stock Purchase Price” of any share of Class B Common Stock purchased pursuant to Section 2.1 shall be its par value.

 

3.             Election of Directors.

 

3.1          At each annual or special stockholders meeting called for the election of directors, each holder of Class B Common Stock shall vote all of its shares of Class B Common Stock, and the Company shall take all necessary and desirable actions within its control (including, without limitation, calling special Board or stockholder meetings and approval of amendments and/or restatements of the Company’s certificate of incorporation or by-laws), so that:

 

(a)           the authorized number of directors on the Board and the composition of the Board shall be as established by Parent;

 

(b)           all of the directors designated by Parent shall be elected to the Board; and

 

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(c)           the removal from the Board (with or without cause) of any representative designated pursuant hereto by Parent shall be at Parent’s written request, but only upon such written request and under no other circumstances.

 

3.2          In order to secure the obligation of the Investor Stockholder to vote its shares of Class B Common Stock in accordance with the provisions of Section 3.1 above, the Investor Stockholder hereby irrevocably appoints Parent as its true and lawful proxy and attorney-in-fact, with full power of substitution, to vote all of such holder’s shares of Class B Common Stock for the election and removal of directors and all such other matters as expressly provided for in Section 3.1 above. Parent may exercise the irrevocable proxy granted to it hereunder at any time any such holder fails to comply with the provisions of Section 3.1.  The proxy and power granted by each such holder pursuant to this Section 3.2 are given to secure the performance of the obligations under this Agreement. Such proxy and power of attorney are irrevocable until the termination of this Agreement.  The Investor Stockholder shall not incur any liability or obligation to Parent or any other Person, directly or indirectly, in connection with, or as a result of, any exercise of the proxy granted to Parent.

 

4.           Stock Certificate Legend. A copy of this Agreement shall be filed with the Secretary of the Company and kept with the records of the Company. Each certificate representing shares of Common Stock owned by the Stockholders will bear a legend in substantially the following form (with such additions thereto or changes therein as the Company may be advised by counsel are required by law or necessary to give full effect to this Agreement):

 

“The shares represented by this Certificate have not been registered under the United States Securities Act of 1933, as amended (the “Act”), or applicable state securities laws and may not be offered, pledged, sold, assigned or otherwise transferred (“Transfer”) except pursuant to (i) an effective registration statement under the Act and applicable state securities laws or (ii) an applicable exemption from registration thereunder.

 

The shares represented by this certificate are also subject to the terms and conditions of the Voting Agreement (the “Voting Agreement”), dated as of January 13, 2012, as it may be amended from time to time by and among 99 Cents Only Stores (the “Company”), Number Holdings, Inc. (“Parent”) and ACOF III Number Holdings, LLC. A copy of the Voting Agreement is available upon request from the Company.”

 

In addition, certificates representing shares of Class B Common Stock issued to any Person other than Parent shall bear upon their face the following legend:

 

“The shares represented by this Certificate may not be Transferred except to Parent or with Parent’s consent, and, in each such case, only subject to the terms and conditions specified in the Voting Agreement.  In addition, the shares represented by this Certificate are subject to restrictions on voting, an irrevocable proxy and other conditions as specified in the Voting Agreement.”

 

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

 

5.             Covenants: Representations and Warranties.  Each Stockholder hereby represents and warrants to the Company and to each other that:

 

5.1          No Other Arrangements or Agreements. Except for this Agreement, any Stock Subscription Agreement and the Parent Stockholders Agreement, such Stockholder has not entered into or agreed to be bound by any other arrangements or agreements of any kind with any other party with respect to the acquisition or disposition of shares of Common Stock or any interest therein or the voting of shares of Common Stock (whether or not such agreements and arrangements are with the Company or any of its Subsidiaries).

 

5.2          Additional Representations and Warranties.  Such Stockholder (a) has the legal capacity or organizational power and authority to execute, deliver and perform its obligations under this Agreement and (b) is duly organized and validly existing and in good standing under the laws of its jurisdiction of organization.  This Agreement has been duly executed and delivered by such Stockholder and constitutes a legal, valid and binding obligation of such Stockholder, enforceable against it in accordance with the terms of this Agreement, subject to applicable bankruptcy, insolvency, reorganization, moratorium and other laws affecting the rights of creditors generally and to the exercise of judicial discretion in accordance with general principles of equity (whether applied by a court of law or of equity).  The execution and delivery of this Agreement by such Stockholder does not violate the terms of or result in the acceleration of any obligation under the certificate of incorporation or the by-laws, the certificate of formation or the limited liability company agreement, or the certificate of limited partnership or the limited partnership agreement, as the case may be, of such Stockholder.

 

6.             Taxes.  The Company shall cause to be prepared and filed all material Tax returns for the Company and its subsidiaries required to be filed. Upon written request by the Company, each Stockholder shall furnish to the Company relevant information in its possession that is necessary or relevant to enable the Tax returns of the Company and its subsidiaries to be prepared and filed. The Company shall timely furnish, or shall cause to be timely furnished, to each Stockholder any information that is required to enable Tax returns to be prepared for, or by, such Stockholder or any of its controlling Affiliates.  No Stockholder shall be required to furnish any information that it deems confidential, including without limitation, any Tax returns.

 

7.             Amendment and Modification. This Agreement may not be amended, restated, modified or supplemented or any provision hereof expressly waived, except by a written instrument signed by the Company, Investor Stockholder and Parent; provided that, so long as CPPIB is a stockholder of Parent, the written consent of CPPIB shall be required prior to Parent’s delivery of any such written instrument.

 

8.             Parties.

 

8.1          Assignment by Parent. Parent shall have the right to pledge, grant a security interest in or assign to one or more (a) of its Affiliates or (b) secured parties (or any 

 

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agent, trustee or other representative on behalf thereof) to secure its obligations under any financing agreements to which it is a party, all or any of its rights and/or obligations to acquire shares of Class B Common Stock pursuant to Section 2.1.

 

8.2          Assignment Generally. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns; provided that neither the Company nor the Investor Stockholder shall assign any of its rights or obligations hereunder without the consent of Parent unless, in the case of the Investor Stockholder, such assignment is in connection with a Transfer explicitly permitted by this Agreement or the Parent Stockholders Agreement and, prior to such assignment, such assignee complies with the requirements of Section 8.4.

 

8.3          Termination. Any Stockholder who ceases to own shares of Common Stock or any interest therein, shall cease to be a party to, or a Person who is subject to, this Agreement and thereafter shall have no rights or obligations hereunder; provided that a Transfer of shares of Common Stock not explicitly permitted under this Agreement shall not relieve a Stockholder of any of his or her obligations hereunder.

 

8.4          Agreements to Be Bound.  Notwithstanding anything to the contrary contained in this Agreement, any Transfer of shares by a Stockholder (the “Transferor”) (other than pursuant to Section 2.1) shall be permitted under the terms of this Agreement only if the transferee of such Transfer (the “Transferee”) shall agree in writing to be bound by the terms and conditions of this Agreement pursuant to an instrument of assumption reasonably satisfactory in substance and form to the Company and such Transferee shall enjoy all of the rights and shall be subject to all of the restrictions and obligations of the Transferor of such Transfer, including, without limitation, the provisions of Section 2.1 and Section 3.

 

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

 

10.          No Third Party Beneficiaries.  This Agreement is not intended to confer upon any Person, except the parties hereto, any rights or remedies hereunder; provided that CPPIB shall be an express third party beneficiary of the first proviso set forth in Section 2.1 and the proviso set forth in Section 7.

 

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

 

5

 

12.          Governing Law; Submission to Jurisdiction. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware, without giving effect to its principles of conflict of laws.  The parties hereto irrevocably submit, in any legal action or proceeding relating to this Agreement, to the jurisdiction of the courts of the United States located in the State of New York or in any New York state court located in New York county and consent that any such action or proceeding may be brought in such courts and waive any objection that they may now or hereafter have to the venue of such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient forum.  Each party hereto further agrees that service of any process, summons, notice or document by U.S. registered mail to such party’s address set forth in Section 15 shall be effective service of process for any claim, action or proceeding with respect to any matters to which it has submitted to jurisdiction in this Section 12 or otherwise.

 

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

 

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

 

15.          Notices. All notices, demands or requests made pursuant to, under or by virtue of this Agreement must be in writing and sent to the party to which the notice, demand or request is being made at the address or facsimile number set forth on the signature pages hereof or at such other address or facsimile number as such party shall have furnished to the Company in writing; provided that:

 

(i)            unless otherwise specified by the Company or Parent in a notice delivered by the Company or Parent in accordance with this Section 15, any notice required to be delivered to the Company or Parent shall be properly delivered if delivered to:

 

Number Holdings, Inc.
 or 99 Cents Only Stores

c/o Ares Management LLC
 2000 Avenue of the Stars
 Los Angeles, California 90067
 Facsimile:        (310) 201-4170
 Attention:        Adam Stein

 

6

 

and

 

Number Holdings, Inc.
 or 99 Cents Only Stores

c/o Canada Pension Plan Investment Board
 One Queen Street East, Suite 2600

P.O. Box 101
 Toronto, ON M5C 2W5
 Facsimile:        (416) 868-8684
 Attention:        Shane Feeney

 

with copies (which shall not constitute notice) to:

 

Proskauer Rose LLP
 2049 Century Park East, Suite 3200
 Los Angeles, CA 90067
 Facsimile:         (310) 557-2193
 Attention:         Michael A. Woronoff, Esq.

 

and

 

Torys LLP
 1114 Avenue of the Americas
 New York, NY 10036
 Facsimile:         (212) 682-0200
 Attention:          Stefan P. Stauder

 

(ii)          If to the Investor Stockholder; to it at:

 

ACOF III Number Holdings, LLC
 c/o Ares Management LLC
 2000 Avenue of the Stars, 12th Floor
 Los Angeles, CA 90067
 Facsimile:       (310) 201-4170
 Attention:       Adam Stein

 

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

 

Proskauer Rose LLP
 2049 Century Park East, Suite 3200
 Los Angeles, CA 90067
 Facsimile:         (310) 557-2193
 Attention:         Michael A. Woronoff, Esq.

 

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

 

7

 

17.          Counterparts. This Agreement may be executed in any number of counterparts, including by way of electronic transmission (e.g., pdf and facsimile formats), each of which may be executed by less than all of the parties hereto, each of which shall be enforceable against the parties actually executing such counterparts, and all of which together shall constitute one instrument.

 

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

 

19.          Waiver of Jury Trial. Each party to this Agreement hereby irrevocably and unconditionally waives to the fullest extent permitted by applicable law all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to the actions of the parties hereto pursuant to this Agreement or in the negotiation, administration, performance or enforcement of this Agreement.

 

20.          Reimbursement of Investor Stockholder Expenses.  Parent and the Company shall, jointly and severally, pay to, or on behalf of, the Investor Stockholder, promptly as billed, all documented out-of-pocket third party expenses (excluding allocation of internal expenses) incurred by the Investor Stockholder or any Investor Stockholder Related Party (as defined below) (or incurred on such Person’s behalf by any other Persons) in connection with complying with the terms and provisions of this Agreement.

 

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

 

“Affiliate” of any specified Person means any other Person directly or indirectly controlling, controlled by or under direct or indirect common control with such specified Person.  No Person shall be deemed to be an Affiliate of another Person solely by virtue of the fact that both Persons own shares of the Company’s Common Stock.

 

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

 

“control” means, with respect to any Person, the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and words of similar import such as “controlling” and “controlled” have meanings correlative to the foregoing.

 

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

 

8

 

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

 

“Investor Stockholder Related Party” means (a) each Related Person of the Investor Stockholder and (b) each of the partners, members, directors, officers, employees, agents and controlling persons of the Investor Stockholder or any of its Related Persons.

 

“Parent Stockholders Agreement” means the stockholders agreement, dated as of the date hereof, relating to Parent among Parent, the Investor Stockholder and the other parties thereto.

 

“Person” means an individual, a corporation, a general or limited partnership, a limited liability company, a joint stock company, an association, a trust or any other entity or organization, including a government, a political subdivision or an agency or instrumentality thereof.

 

“Related Person” means, with respect to any Person, (a) any Affiliate of such Person, (b) any investment manager, investment advisor, managing member or general partner of such Person, (c) any investment fund, investment partnership, investment account or other investment Person whose investment manager, investment advisor, managing member or general partner is such Person or a Related Person of such Person, and (d) any equity investor, member, partner or officer of such Person.

 

“Stock Subscription Agreement” means each subscription agreement, dated as of the date hereof, between Merger Sub and each party thereto.

 

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

 

“Tax” means any tax, duty, assessment, charge, or other levy separately or jointly due or payable to or levied or imposed by any Governmental Entity, including, income, gross receipts, license, wages, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duty, capital, franchise, profits, withholding, social security, unemployment, disability, real property, personal property, sales, use, transfer, transaction, registration, value added, alternative/add-on minimum, estimated or other tax, duty, charge or other levy of any kind whatsoever, including any interest, penalty or addition thereto, and any interest with respect to such addition or penalty.

 

“Transfer” means any direct or indirect sale, assignment, mortgage, transfer, pledge, hypothecation or other disposal.

 

9

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set forth above.

 

 

	
 
    	
99   CENTS ONLY STORES
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Eric Schiffer
    
	
 
    	
 
    	
Name:   Eric Schiffer
    
	
 
    	
 
    	
Title:     Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
NUMBER   HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Eric Schiffer
    
	
 
    	
 
    	
Name:   Eric Schiffer
    
	
 
    	
 
    	
Title:     Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ACOF   III NUMBER HOLDINGS, LLC  
    
	
 
    	
 
    
	
 
    	
By:   Ares Corporate Opportunities Fund III, L.P. 
    
	
 
    	
 
    
	
 
    	
By:   ACOF Operating Manager III, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Adam Stein
    
	
 
    	
 
    	
Name:   Adam Stein
    
	
 
    	
 
    	
Title:     Authorized Signatory
    

 

[Signature Page to Voting Agreement]

 

 

Schedule A

 

	
Stockholder
    	
 
    	
Initial Amount of Class A
   Common Stock Held
    	
 
    	
Initial Amount of Class B
   Common Stock Held
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Parent
    	
 
    	
100 shares, which constitutes 100% of all outstanding shares of   Class A common stock
    	
 
    	
90 shares, which constitutes 90% of all outstanding shares of   Class B Common Stock
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Investor Stockholder
    	
 
    	
0
    	
 
    	
10 shares, which constitutes 10% of all outstanding shares of   Class B Common Stock

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