UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 


 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):   June 27, 2013

 


 

GLOBAL PARTNERS LP

(Exact name of registrant as specified in its charter)

 

Delaware

 

001-32593

 

74-3140887

(State or other jurisdiction of
incorporation)

 

(Commission File Number)

 

(I.R.S. Employer
Identification Number)

 

P.O. Box 9161

800 South Street

Waltham, Massachusetts 0254-9161

(Address of principal executive offices)

 

(781) 894-8800

(Registrant’s telephone number, including area code)

 

Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act  (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act  (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act  (17 CFR 240.13e-4(c))

 

 

 



 

Item 5.02.                                         Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 

Phantom Unit Award Agreements

 

On June 27, 2013 the Compensation Committee (the “Compensation Committee”) of the Board of Directors (the “Board”) of Global GP LLC (“GPLLC”), the general partner of Global Partners LP (the “Partnership”), approved  forms of phantom unit award agreements under the Global Partners LP Long-Term Incentive Plan (as amended and restated effective June 22, 2012, the “Plan”) for use, as applicable, for grants to employees (the “Employee Award Agreement”) and directors (the “Director Award Agreement”) of GPLLC and its affiliates (the Employee Award Agreement and the Director Award Agreement, together, “the Award Agreements”).

 

The Award Agreements provide for time-based vesting of phantom unit awards granted thereunder.  The Award Agreements do not provide for the grant of distribution equivalent rights in connection with the phantom unit grant.  Under the Award Agreements, treatment of unvested phantom unit awards in the event of death, disability, retirement, and certain involuntary terminations of employment of employees or termination of service of a director shall be determined at the discretion of the Compensation Committee.  If a grantee’s employment is terminated for “Cause” (as defined in the Employee Award Agreement) by GPLLC or by the grantee voluntarily then the grantee will forfeit all unvested phantom unit awards.  The Award Agreements further provide that all outstanding phantom units held by a grantee automatically vest in the event of a “Change of Control” (as defined in the Award Agreements).  Grantees who are employees must enter into a Confidentiality, Non-Solicitation, and Non-Competition Agreement with GPLLC  by July 10, 2013 in order to receive their phantom unit award.  If a grantee who is an employee does not enter into a Confidentiality, Non-Solicitation, and Non-Competition Agreement with GPLLC  by July 10, 2013, such grantee would forfeit his or her phantom unit award.

 

The foregoing description of the Award Agreements does not purport to be complete and is qualified in its entirety by reference to the Employee Award Agreement and the Director Award Agreement, copies of which are filed as exhibits 10.1 and 10.2 hereto, respectively, and are incorporated herein by reference.

 

Future awards, if any, shall be granted at the discretion of the Compensation Committee in compliance with the terms of the Plan in the form of award agreement selected by the Compensation Committee, in its full discretion, which may include the Award Agreements.

 

Phantom Unit Awards

 

On June 27, 2013, the Compensation Committee approved grants of phantom units under the Plan to certain of our general partner’s current and future executive officers, including Eric Slifka, Andrew Slifka, Edward J. Faneuil, Charles A. Rudinsky, Daphne H. Foster, and Mark Romaine and our general partner’s independent directors, Kenneth I. Watchmaker, David K. McKown and Robert J. McCool.  The number of phantom units granted to Messrs. Eric Slifka, Andrew Slifka, Faneuil, Rudinsky and Romaine, Ms. Foster and our general partner’s independent directors are listed below:

 

Name

 

Title

 

Phantom
Units

 

 

 

 

 

 

 

Eric Slifka

 

President and Chief Executive Officer

 

127,259

 

 

 

 

 

 

 

Andrew Slifka

 

Executive Vice President and President of Alliance Gasoline Division

 

29,537

 

 

 

 

 

 

 

Edward J. Faneuil

 

Executive Vice President and General Counsel

 

76,356

 

 

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Charles A. Rudinsky

 

Executive Vice President and Chief Accounting Officer

 

5,091

 

 

 

 

 

 

 

Daphne H. Foster

 

Chief Financial Officer*

 

21,889

 

 

 

 

 

 

 

Mark Romaine

 

Chief Operating Officer*

 

57,012

 

 

 

 

 

 

 

Kenneth I. Watchmaker

 

Director

 

8,145

 

 

 

 

 

 

 

David K. McKown

 

Director

 

8,145

 

 

 

 

 

 

 

Robert J. McCool

 

Director

 

8,145

 

 


*Effective July 1, 2013

 

The awards to Ms. Foster and Mr. Romaine were made in connection with their appointments as Chief Financial Officer and Chief Operating Officer of the Partnership, respectively.

 

All awards granted by the Compensation Committee on June 27, 2013 were granted pursuant to the Award Agreements.  The awards granted to the executive officers enumerated above, except for Mr. Rudinsky, shall vest on a cumulative basis as follows, subject to continued employment: 33 1/3% on July 1, 2017, 66 2/3% on July 1, 2018, and 100% on July 1, 2019.  The phantom unit award to Mr. Rudinsky shall vest on a cumulative basis as follows, subject to continued employment: 33 1/3% on December 31, 2014, 66 2/3% on December 31, 2015, and 100% on December 31, 2016.  The awards granted to the directors enumerated above shall vest on a cumulative basis as follows: 33 1/3% on December 31, 2014, 66 2/3% on December 31, 2015, and 100% on December 31, 2016.

 

As described above in this Item 5.02 under the heading “Phantom Unit Award Agreements,” each recipient of an Employee Award Agreement, including certain executive officers listed above, must enter into a Confidentiality, Non-Solicitation, and Non-Competition Agreement with GPLLC in order to receive their phantom unit award. A summary of the material terms of the Confidentiality, Non-Solicitation, and Non-Competition Agreement is included in this Item 5.02 under the heading “Non-Competition Agreements” below. Such summary does not purport to be complete and is qualified in its entirety by reference to the form of Confidentiality, Non-Solicitation, and Non-Competition Agreement, a copy of which is filed as exhibit 10.6 hereto and incorporated herein by reference.

 

Executive Change of Control Agreements

 

On June 27, 2013 the Compensation Committee, in recognition of the valuable services provided and to be provided, and to encourage their continued employment and to provide additional incentive to achieve corporate objectives, authorized GPLLC to enter into an Executive Change of Control Agreement (the “Change of Control Agreement”) with each of Daphne H. Foster,  Mark Romaine, in connection with their respective appointments as Chief Financial Officer and Chief Operating Officer, and Charles A. Rudinsky.

 

Under the Change of Control Agreement, if, within the 3 month period ending on the date a change of control (as defined in the Change of Control Agreement) of GPLLC occurs or within the 12 months following a change of control (as defined in the Change of Control Agreement) of GPLLC, the executive officer’s employment with GPLLC is terminated by GPLLC other than for cause, or by the executive officer for good reason (each as defined in the Change of Control Agreement), the executive officer would be entitled to (1) acceleration of the target incentive amount under the then applicable short term incentive plan for the fiscal year in which the termination occurs and (2) 100% vesting on any and all outstanding awards options, restricted units, phantom units, unit appreciation rights and other similar rights granted under the Plan. Payment under the Change of Control Agreement is dependent on the executive officer executing a release of claims agreement.

 

As a condition to entering into the Change of Control Agreement, certain executive officers must also execute a Confidentiality, Non-Solicitation, and Non-Competition Agreement, a summary of the material terms of which is included in this Item 5.02 under the heading “Non-Competition Agreements” below and a form of which is filed as exhibit 10.6 hereto.

 

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The foregoing description of the Change of Control Agreements does not purport to be complete and is qualified in its entirety by reference to the Executive Change of Control Agreement, effective July 1, 2013, by and between Global GP LLC and Daphne H. Foster, the Executive Change of Control Agreement, effective July 1, 2013, by and between Global GP LLC and Mark Romaine and the Executive Change of Control Agreement, effective July 1, 2013 by and between Global GP LLC and Charles A. Rudinsky, copies of which are filed as exhibits 10.3, 10.4 and 10.5, respectively, hereto and are incorporated herein by reference.

 

Non-Competition Agreements

 

On June 27, 2013, the Compensation Committee authorized GPLLC to enter into Confidentiality, Non-Solicitation, and Non-Competition Agreements (the “Non-Competition Agreements”) with (i) Daphne H. Foster and Mark Romaine in connection with their appointment as Chief Financial Officer and Chief Operating Officer, respectively, as well as (ii) each recipient of a phantom unit award granted pursuant to the Award Agreements (the “Phantom Unit Award Recipients”), other than Messrs. Eric Slifka, Andrew Slifka, and Faneuil, who each have employment agreements with GPLLC that contain confidentiality, non-solicitation, and non-competition provisions.  The Non-Competition Agreements provide that during the employee’s term of employment and for a period of (i) two years thereafter with respect to Ms. Foster, Mr. Romaine, Mr. Rudinsky and certain other employees  or (ii) one year thereafter with respect to other Phantom Unit Award Recipients, the employee is prohibited from working for, engaging in or acquiring or investing in any business having assets engaged in (or actively considering engagement in) certain businesses in the United States and Canada and other jurisdictions in which GPLLC and its affiliates conduct business during the period of the employee’s employment and for which the employee had material responsibilities or about which the employee obtained material confidential information.  The Non-Competition Agreements also contain provisions prohibiting the employee from soliciting any employees, contractors, vendors, suppliers or customers of GPLLC during the employee’s term of employment and for a period of one or two years thereafter and from disclosing confidential information.

 

The foregoing description of the Non-Competition Agreements does not purport to be complete and is qualified in its entirety by reference to the form of Non-Competition Agreement, a copy of which is filed as exhibit 10.6 hereto and the individual Non-Competition Agreements entered into with Ms. Foster and Mr. Romaine, copies of which are filed as exhibit 10.7 and 10.8, respectively, hereto and each is incorporated herein by reference.

 

Item 9.01                                            Financial Statements and Exhibits

 

(d)                                  Exhibit

 

10.1*                  Form of Phantom Unit Award Agreement for Employees under Global Partners LP Long-Term Incentive Plan

 

10.2*                  Form of Phantom Unit Award Agreement for Directors under Global Partners LP Long-Term Incentive Plan

 

10.3*                  Executive Change of Control Agreement, effective July 1, 2013, by and between Global GP LLC and Daphne H. Foster

 

10.4*                  Executive Change of Control Agreement, effective July 1, 2013, by and between Global GP LLC and Mark Romaine

 

10.5*                  Executive Change of Control Agreement, effective July 1, 2013, by and between Global GP LLC and Charles A. Rudinsky

 

10.6*                  Form of Confidentiality, Non-Solicitation, and Non-Competition Agreement for Phantom Unit Award Recipients

 

10.7*                  Confidentiality, Non-Solicitation, and Non-Competition Agreement, effective July 1, 2013, by and between Global GP LLC and Daphne H. Foster

 

10.8*                  Confidentiality, Non-Solicitation, and Non-Competition Agreement, effective July 1, 2013, by and between Global GP LLC and Mark Romaine

 


*Filed herewith

 

4



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

GLOBAL PARTNERS LP

 

 

 

By:

Global GP LLC

 

 

its general partner

 

 

 

 

By:

/s/ Edward J. Faneuil

 

 

 

Edward J. Faneuil

 

 

 

Executive Vice President,

 

 

 

General Counsel and Secretary

 

 

 

 

Date: July 3, 2013

 

 

5



 

EXHIBIT INDEX

 

Exhibit

 

 

Number

 

Description

 

 

 

10.1*

 

Form of Phantom Unit Award Agreement for Employees under Global Partners LP Long-Term Incentive Plan

 

 

 

10.2*

 

Form of Phantom Unit Award Agreement for Directors under Global Partners LP Long-Term Incentive Plan

 

 

 

10.3*

 

Executive Change of Control Agreement, effective July 1, 2013, by and between Global GP LLC and Daphne H. Foster

 

 

 

10.4*

 

Executive Change of Control Agreement, effective July 1, 2013, by and between Global GP LLC and Mark Romaine

 

 

 

10.5*

 

Executive Change of Control Agreement, effective July 1, 2013, by and between Global GP LLC and Charles A. Rudinsky

 

 

 

10.6*

 

Form of Confidentiality, Non-Solicitation, and Non-Competition Agreement for Phantom Unit Award Recipients

 

 

 

10.7*

 

Confidentiality, Non-Solicitation, and Non-Competition Agreement, effective July 1, 2013, by and between Global GP LLC and Daphne H. Foster

 

 

 

10.8*

 

Confidentiality, Non-Solicitation, and Non-Competition Agreement, effective July 1, 2013, by and between Global GP LLC and Mark Romaine

 


*Filed herewith

 

6


Exhibit 10.1

 

Global Partners LP
Long-Term Incentive Plan

 

Grant of Phantom Units

 

Grantee :

(the “Grantee”)

 

 

Grant Date :

(the “Grant Date”)

 

1.                                       Grant of Phantom Units .  Global GP LLC (“GPLLC”) hereby grants to you          Phantom Units under the Global Partners LP Long-Term Incentive Plan (the “Plan”) on the terms and conditions set forth herein and in the Plan, which is incorporated herein by reference as a part of this agreement (“Agreement”). For the avoidance of doubt, this grant of Phantom Units does not include a tandem grant of distribution equivalent rights.

 

2.                                       Vesting/Forfeitures . Except as otherwise provided in this Agreement, the Phantom Units will vest in accordance with the vesting schedule set forth in the following table, provided that you remain continuously employed by the Company or an Affiliate from the Grant Date through each vesting date set forth below (each, a “Vesting Date”):

 

Vesting Date

 

Cumulative Vested Percentage

 

 

 

 

 

 

 

 

 

 

If, on any Vesting Date, the application of the vesting schedule set forth above results in a fractional Phantom Unit becoming vested, the number of Phantom Units vesting on such date shall be rounded up to the next whole number of Phantom Units.

 

3.                                       Events Occurring Prior to Vesting . Notwithstanding Paragraph 2 to the contrary,

 

(a)                                  Death or Disability . If your employment with GPLLC terminates as a result of your death or a “disability” (defined in your employment agreement with GPLLC, or in the absence of such an agreement, Section 409A(a)(2)(C) of the Code), the Plan’s Committee, in its sole discretion, shall determine whether any or all of the Phantom Units granted to you that have not yet vested shall become vested, shall be forfeited, or shall continue to vest pursuant to their terms as if your employment with GPLLC had continued through the date upon which the last Phantom Units granted hereunder are vested and paid.

 

(b)                                  Retirement . If your employment with GPLLC terminates as a result of your voluntary retirement on or after age 62 and you have at least 10 years of service with GPLLC or its predecessors at the time of your retirement, the Plan’s

 



 

Committee, in its sole discretion, shall determine whether any or all of the Phantom Units granted to you that have not yet vested shall become vested or forfeited .

 

(c)                                   Involuntary Termination . If your employment with GPLLC is terminated by GPLLC for any reason other than “Cause” (as defined in your employment agreement with GPLLC, or in the absence of such an agreement, as defined in Paragraph 3(d) below), the Plan’s Committee, in its sole discretion, shall determine whether any or all of the Phantom Units granted to you that have not yet vested shall become vested or forfeited.

 

(d)                                  Termination for Cause; Voluntary Termination . If your employment with GPLLC is terminated (1) by GPLLC for Cause, or (2) by you (other than by retirement pursuant to 3(d) above), all unvested Phantom Units then held by you that have not vested shall automatically be forfeited without payment upon such termination. For the purposes of this Agreement:

 

(A)                                If you are not party to an employment agreement with GPLLC that contains a definition of Cause, Cause shall be defined to mean (i) your continual disregard of or failure to follow any written rules or policies of GPLLC, the Partnership and their Affiliates, (ii)  your repeated failure or refusal to perform your duties as an employee, (iii)  your embezzlement, misappropriation of assets or property (tangible or intangible) of GPLLC, the Partnership and/or their Affiliates, (iv)  your gross negligence, misconduct, neglect of duties, theft, fraud, or breach of fiduciary duty to GPLLC, the Partnership and their Affiliates, (v)  your unauthorized disclosure of any trade secret or confidential information of GPLLC, the Partnership and/or their Affiliates or any other act of disloyalty to GPLLC, the Partnership and their Affiliates, (vi)  the commission of an act which constitutes unfair competition with GPLLC, the Partnership and/or their Affiliates or which induces any customer or supplier to breach a contract with GPLLC, the Partnership and/or their Affiliates, (vii)  an act by you which creates adverse publicity for GPLLC, the Partnership and their Affiliates, (viii)  your conviction of a felony, including a plea of guilty or no contest, or (ix) your breach of the Non-Competition Agreement (as defined below).

 

Notwithstanding the foregoing, if you are party to an employment agreement with GPLLC that contains a definition of “constructive termination” or “good reason” or a similar term, and your termination of your employment with GPLLC is determined finally by an arbitrator or court of competent jurisdiction to constitute constructive termination or termination with good reason or the like, then the Plan’s Committee, in its sole discretion, shall determine whether any or all of the Phantom Units granted to you that have not yet vested shall become vested or forfeited.

 

2



 

(e)                                   Change of Control . All outstanding Phantom Units held by you automatically shall become fully vested upon a Change of Control (as defined in your employment agreement with GPLLC, or in the absence of such a definition, as defined below).

 

“Change of Control” means, and shall be deemed to have occurred upon the occurrence of one or more of the following events:  (i) any sale, lease, exchange or other transfer or disposition (in one transaction or a series of related transactions) of all or substantially all of the assets of GPLLC or the Partnership to any Person and/or its Affiliates, other than to GPLLC, the Partnership and/or any of their Affiliates; (ii)  the consolidation, reorganization, merger or other transaction pursuant to which more than 50% of the combined voting power of the outstanding equity interests in GPLLC cease to be owned by the Persons (including Affiliates thereof) who own such interests as of the effective date of the initial public offering of Units (each such Person, an “Original Holder”); provided that, any transaction involving a transfer from an Original Holder to another Original Holder shall be disregarded for purposes of Paragraph 3(e)(ii) and shall not be considered in determining whether a Change of Control has occurred; or (iii)  GPLLC (or an Affiliate thereof) ceasing to be the general partner of the Partnership.

 

For purposes of this Paragraph 3, “employment with GPLLC” shall include being an Employee of, or a Consultant to, GPLLC or an Affiliate.

 

4.                                       Payments .  As soon as administratively practicable after a Vesting Date, or, if vesting occurs upon a Change of Control as provided in Paragraph 3(e), as soon as administratively practicable on or following such Change of Control, but in all events not later than 2½ months following the vesting of the Phantom Unit, you shall be paid one Unit for each such vested Phantom Unit, subject to Paragraph 7; provided, however, the Committee may, in its sole discretion, direct that a cash payment be made to you in lieu of the delivery of such Unit.  Any such cash payment shall be equal to the Fair Market Value of the Unit on the day immediately preceding the payment date.  If more than one Phantom Unit vests at the same time, the Committee may elect to pay such vested Award in Units, cash or any combination thereof, in its discretion.

 

5.                                       Limitations Upon Transfer . All rights under this Agreement shall belong to you alone and may not be transferred, assigned, pledged, or hypothecated by you in any way (whether by operation of law or otherwise), other than by will or the laws of descent and distribution and shall not be subject to execution, attachment, or similar process. Upon any attempt by you to transfer, assign, pledge, hypothecate, or otherwise dispose of such rights contrary to the provisions in this Agreement or the Plan, or upon the levy of any attachment or similar process upon such rights, such rights shall immediately become null and void.

 

6.                                       Restrictions . By accepting this grant, you agree that any Units that you may acquire upon payment of this award will not be sold or otherwise disposed of in any manner that would constitute a violation of any applicable federal or state securities laws. You also

 

3



 

agree that (i)  the certificates representing the Units acquired under this award may bear such legend or legends as the Committee deems appropriate in order to assure compliance with applicable securities laws, (ii)  GPLLC may refuse to register the transfer of the Units to be acquired under this award on the transfer records of the Partnership if such proposed transfer would in the opinion of counsel satisfactory to the Partnership constitute a violation of any applicable securities law, and (iii)  the Partnership may give related instructions to its transfer agent, if any, to stop registration of the transfer of the Units to be acquired under this award.

 

7.                                       Withholding of Taxes . To the extent that the grant, vesting or payment of a Phantom Unit results in the receipt of compensation by you with respect to which GPLLC or an Affiliate has a tax withholding obligation for any reason, you shall pay to GPLLC or the Affiliate such amount of money as GPLLC or the Affiliate may require to meet its withholding obligations under applicable law. With respect to any required tax withholding, you may (a) direct GPLLC or the Affiliate to withhold from the Units to be issued to you pursuant to Paragraph 4 of this Agreement the number of Units necessary to satisfy the tax withholding obligation, which determination will be based on the Units’ Fair Market Value on the date of withholding; or (b) deliver cash to GPLLC or the Affiliate sufficient to satisfy the tax withholding obligation. If you fail to make an election, GPLLC or the Affiliate shall automatically proceed as if you had elected the withholding option described in subparagraph (a) by withholding a number of Units issuable to you pursuant to Paragraph 4 of this Agreement necessary to satisfy the tax withholding obligation. In the event GPLLC or an Affiliate determines that the aggregate Fair Market Value of the Units withheld as payment of any tax withholding obligation is insufficient to discharge that tax withholding obligation, then you must pay to GPLLC or the Affiliate, in cash, the amount of that deficiency immediately upon GPLLC’s or the Affiliate’s request.

 

8.                                       Rights as Unitholder . You, or your executor, administrator, heirs, or legatees shall have the right to vote and receive distributions on Units and all the other privileges of a unitholder of the Partnership only from the date of issuance of a Unit certificate in your name representing payment of a vested Phantom Unit.

 

9.                                       Non-Competition .  As a condition of your receipt of this Grant of Phantom Units, you agree to execute the Confidentiality, Non-Competition, and Non-Solicitation Agreement that is attached hereto as Exhibit A (the “Non-Competition Agreement”). You acknowledge and agree that the restrictions set forth in the Non-Competition Agreement are reasonable in all respects and no greater than necessary to protect GPLLC’s legitimate business interests, including the protection of its confidential information, trade secrets and goodwill.  You also acknowledge that in receiving this Grant of Phantom Units, you are receiving new consideration above and beyond any consideration to which you were entitled but for your entry into the Non-Competition Agreement, and if you fail to execute the Non-Competition Agreement and deliver it to the Company on or before July 10, 2013, you shall forfeit all Phantom Units granted hereunder.

 

10.                                Insider Trading Policy . The terms of Partnership’s Insider Trading Policy (the “Policy”) with respect to Units are incorporated herein by reference. The timing of the delivery of

 

4



 

any Units pursuant to a vested Phantom Unit shall be subject to and comply with such Policy.

 

11.                                Binding Effect . This Agreement shall be binding upon and inure to the benefit of any successor or successors of GPLLC and upon any person lawfully claiming under you.

 

12.                                Entire Agreement . Except as modified by, and subject to the terms of, any written employment, severance or change of control agreement between us or between you and an Affiliate, the Plan and this Agreement constitute the entire agreement of the parties with regard to the subject matter hereof, and contains all the covenants, promises, representations, warranties and agreements between the parties with respect to the Phantom Units granted hereby; provided, however, that this Agreement is in addition to and does not supersede or replace any prior or contemporaneous agreement between you and GPLLC, the Partnership, or any of their Affiliates relating to confidentiality, non-disclosure, non-competition, or non-solicitation.

 

13.                                Modifications . Except as provided below, any modification of this Agreement shall be effective only if it is in writing and signed by both you and an authorized officer of GPLLC.

 

14.                                Conflicts and Governing Law . In the event of any conflict between the terms of this Agreement and the Plan, the Plan shall control. In the event of any conflict between the terms of this Agreement and any written employment, severance or change of control agreement between us or between you and an Affiliate, the written employment, severance or change of control agreement shall control. Capitalized terms used in this Agreement but not defined herein shall have the meanings ascribed to such terms in the Plan, unless the context requires otherwise. This grant shall be governed by, and construed in accordance with, the laws of the State of Delaware, without regard to conflicts of laws principles thereof.

 

 

GLOBAL GP LLC

 

 

 

 

 

By:

 

 

Name:

 

 

Title:

 

 

 

 

 

 

 

 

GRANTEE

 

 

 

 

 

 

 

By:

 

 

Name:

 

 

5


Exhibit 10.2

 

Global Partners LP

Long-Term Incentive Plan

Grant of Phantom Units

 

Grantee:

(the “Grantee”)

 

 

Grant Date:

(the “Grant Date”)

 

1.                                       Grant of Phantom Units . Global GP LLC ( “GPLLC”) hereby grants to you            Phantom Units under the Global Partners LP Long-Term Incentive Plan (the “Plan”) on the terms and conditions set forth herein and in the Plan, which is incorporated herein by reference as a part of this agreement (“Agreement”). For the avoidance of doubt, this grant of Phantom Units does not include a tandem grant of distribution equivalent rights.

 

2.                                       Vesting/Forfeitures . Except as otherwise provided in this Agreement, the Phantom Units will vest in accordance with the vesting schedule set forth in the following table, provided that your service as a director does not terminate from the Grant Date through each vesting date set forth below (each, a “Vesting Date”):

 

Vesting Date

 

Cumulative Vested Percentage

 

 

 

 

 

 

 

 

 

 

If, on any Vesting Date, the application of the vesting schedule set forth above results in a fractional Phantom Unit becoming vested, the number of Phantom Units vesting on such date shall be rounded up to the next whole number of Phantom Units.

 

3.                                       Events Occurring Prior to Vesting . Notwithstanding Paragraph 2 to the contrary,

 

(a)                                  Death or Disability . If your service as a director of GPLLC terminates as a result of your death or a “disability,” as defined in Section 409A(a)(2)(C) of the Code, the Board, in its sole discretion, shall determine whether any or all of the Phantom Units granted to you that have not yet vested shall become vested, shall be forfeited, or shall continue to vest pursuant to their terms as if your service as a director of GPLLC had continued through the date upon which the last Phantom Units granted hereunder are vested and paid .

 

(b)                                  Resignation and Other Terminations of Service . If you voluntarily resign from your service as a director with GPLLC, fail to be nominated for re-election as a director with GPLLC, or are otherwise not re-elected as a director with GPLLC, the Board, in its sole discretion, shall determine whether any or all of the Phantom Units granted to you that have not yet vested shall (i) remain outstanding and continue to vest on each remaining Vesting Date in accordance with the vesting schedule set forth in Paragraph 2

 



 

as if you continued to serve as a director, (ii) become immediately vested, or (iii) be forfeited.

 

(c)                                   Change of Control . All outstanding Phantom Units held by you automatically shall become fully vested upon a Change of Control.

 

“Change of Control” means, and shall be deemed to have occurred upon the occurrence of one or more of the following events: (i) any sale, lease, exchange or other transfer or disposition (in one transaction or a series of related transactions) of all or substantially all of the assets of GPLLC or the Partnership to any Person and/or its Affiliates, other than to GPLLC, the Partnership and/or any of their Affiliates; (ii) the consolidation, reorganization, merger or other transaction pursuant to which more than 50% of the combined voting power of the outstanding equity interests in GPLLC cease to be owned by the Persons (including Affiliates thereof) who own such interests as of the effective date of the initial public offering of Units (each such Person, an “Original Holder”); provided that, any transaction involving a transfer from an Original Holder to another Original Holder shall be disregarded for purposes of Paragraph 3(e)(ii) and shall not be considered in determining whether a Change of Control has occurred; or (iii) GPLLC (or an Affiliate thereof) ceasing to be the general partner of the Partnership.

 

For purposes of this Paragraph 3, “service as a director” shall include being a Director of, or a Consultant to, GPLLC or an Affiliate.

 

4.                                       Payments . As soon as administratively practicable after a Vesting Date, or, if vesting occurs upon a Change of Control as provided in Paragraph 3(e), as soon as administratively practicable on or following such Change of Control, but in all events not later than 2½ months following the vesting of the Phantom Unit, you shall be paid one Unit for each such vested Phantom Unit, subject to Paragraph 7; provided, however, the Committee may, in its sole discretion, direct that a cash payment be made to you in lieu of the delivery of such Unit.  Any such cash payment shall be equal to the Fair Market Value of the Unit on the day immediately preceding the payment date.  If more than one Phantom Unit vests at the same time, the Committee may elect to pay such vested Award in Units, cash or any combination thereof, in its discretion. Notwithstanding the foregoing, in the event that any Phantom Units vest pursuant to Paragraph 3(b)(i), you shall receive payment for each such vested Phantom Unit on the Vesting Date, subject to Paragraph 7.

 

5.                                       Limitations Upon Transfer . All rights under this Agreement shall belong to you alone and may not be transferred, assigned, pledged, or hypothecated by you in any way (whether by operation of law or otherwise), other than by will or the laws of descent and distribution and shall not be subject to execution, attachment, or similar process. Upon any attempt by you to transfer, assign, pledge, hypothecate, or otherwise dispose of such rights contrary to the provisions in this Agreement or the Plan, or upon the levy of any attachment or similar process upon such rights, such rights shall immediately become null and void.

 

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6.                                       Restrictions . By accepting this grant, you agree that any Units that you may acquire upon payment of this award will not be sold or otherwise disposed of in any manner that would constitute a violation of any applicable federal or state securities laws. You also agree that (i) the certificates representing the Units acquired under this award may bear such legend or legends as the Committee deems appropriate in order to assure compliance with applicable securities laws, (ii) GPLLC may refuse to register the transfer of the Units to be acquired under this award on the transfer records of the Partnership if such proposed transfer would in the opinion of counsel satisfactory to the Partnership constitute a violation of any applicable securities law, and (iii) the Partnership may give related instructions to its transfer agent, if any, to stop registration of the transfer of the Units to be acquired under this award.

 

7.                                       Withholding of Taxes . To the extent that the grant, vesting or payment of a Phantom Unit results in the receipt of compensation by you with respect to which GPLLC or an Affiliate has a tax withholding obligation for any reason, you shall pay to GPLLC or the Affiliate such amount of money as GPLLC or the Affiliate may require to meet its withholding obligations under applicable law. With respect to any required tax withholding, you may (a) direct GPLLC or the Affiliate to withhold from the Units to be issued to you pursuant to Paragraph 4 of this Agreement the number of Units necessary to satisfy the tax withholding obligation, which determination will be based on the Units’ Fair Market Value on the date of withholding; or (b) deliver cash to GPLLC or the Affiliate sufficient to satisfy the tax withholding obligation. If you fail to make an election, GPLLC or the Affiliate shall automatically proceed as if you had elected the withholding option described in subparagraph (a) by withholding a number of Units issuable to you pursuant to Paragraph 4 of this Agreement necessary to satisfy the tax withholding obligation. In the event GPLLC or an Affiliate determines that the aggregate Fair Market Value of the Units withheld as payment of any tax withholding obligation is insufficient to discharge that tax withholding obligation, then you must pay to GPLLC or the Affiliate, in cash, the amount of that deficiency immediately upon GPLLC’s or the Affiliate’s request.

 

8.                                       Rights as Unitholder . You, or your executor, administrator, heirs, or legatees shall have the right to vote and receive distributions on Units and all the other privileges of a unitholder of the Partnership only from the date of issuance of a Unit certificate in your name representing payment of a vested Phantom Unit.

 

9.                                       Insider Trading Policy . The terms of Partnership’s Insider Trading Policy (the “Policy”) with respect to Units are incorporated herein by reference. The timing of the delivery of any Units pursuant to a vested Phantom Unit shall be subject to and comply with such Policy.

 

10.                                Binding Effect . This Agreement shall be binding upon and inure to the benefit of any successor or successors of GPLLC and upon any person lawfully claiming under you.

 

11.                                Entire Agreement. The Plan and this Agreement constitute the entire agreement of the parties with regard to the subject matter hereof, and contains all the covenants, promises,

 

3



 

representations, warranties and agreements between the parties with respect to the Phantom Units granted hereby; provided, however, that this Agreement is in addition to and does not supersede or replace any prior or contemporaneous agreement between you and GPLLC, the Partnership, or any of their Affiliates relating to confidentiality, non-disclosure, non-competition, or non-solicitation.

 

12.                                     Modifications . Except as provided below, any modification of this Agreement shall be effective only if it is in writing and signed by both you and an authorized officer of GPLLC.

 

13.                                     Conflicts and Governing Law . In the event of any conflict between the terms of this Agreement and the Plan, the Plan shall control. Capitalized terms used in this Agreement but not defined herein shall have the meanings ascribed to such terms in the Plan, unless the context requires otherwise. This grant shall be governed by, and construed in accordance with, the laws of the State of Delaware, without regard to conflicts of laws principles thereof.

 

 

GLOBAL GP LLC

 

 

 

 

 

By:

 

 

Name:

 

 

Title:

 

 

 

 

 

GRANTEE

 

 

 

 

 

 

 

By:

 

 

Name:

 

 

Title: Director

 

4


Exhibit 10.3

 

EXECUTIVE CHANGE OF CONTROL AGREEMENT

 

THIS CHANGE OF CONTROL AGREEMENT (the “ Agreement ”) is entered into effective as of July 1, 2013 (the “ Effective Date ”), by and between Global GP LLC, a Delaware limited liability company, (the “ Company ”) and Daphne H. Foster (“ Executive ”).

 

W I T N E S S E T H :

 

WHEREAS , the Company is the general partner of Global Partners LP, a Delaware limited partnership (the “ Partnership ”);

 

WHEREAS , the Executive is currently employed by the Company and is an integral part of the management of the Company;

 

WHEREAS , the Company desires to attract and retain certain key management personnel such as the Executive and, accordingly, desires to enter into a change of control severance agreement with the Executive in order to encourage her continued service to the Company; and

 

WHEREAS , the Executive is prepared to commit such services in return for specific arrangements with respect to change of control severance compensation.

 

NOW, THEREFORE , in consideration of the foregoing and for other good and valuable consideration, the Company and Executive agree as follows:

 

1.                                       Definitions .  For purposes of this Agreement, the terms listed below will have the meanings specified herein:

 

(a)                                  Accrued Payments ” means (i) any unpaid Base Salary through the Date of Termination (but calculated at the rate then in effect), (ii) any earned but unpaid Bonus, (iii) all accrued vacation, expenses reimbursements and other benefits (other than severance), and (iv) any and all other amounts that may be due to her as of the Date of Termination.

 

(b)                                  Base Salary ” means the amount the Executive is entitled to receive as wages or salary on an annualized basis, calculated as of the Date of Termination or, if greater, before any reduction not consented to by the Executive.

 

(c)                                   Board ” means the board of directors of the Company.

 

(d)                                  Bonus ” means any discretionary cash bonus to which the Executive is entitled.

 

(e)                                   Cause ” means the Executive (i) has engaged in gross negligence or willful misconduct in the performance of her duties, (ii) has committed an act of fraud, embezzlement or willful breach of fiduciary duty to the Company or any of its subsidiaries (including the unauthorized disclosure of any material secret, confidential and/or proprietary information, knowledge or data of the Company or any of its subsidiaries); (iii) has been

 



 

convicted of (or pleaded no contest to) a crime involving fraud, dishonesty or moral turpitude or any felony or (iv) has breached any material provision of the Non-Competition Agreement (referenced in Section 5 and attached as Exhibit A ), which breach is not cured within thirty (30) days of Executive’s receipt of written notice of such breach; provided, however, there shall be no opportunity to cure a breach of the Non-Competition Agreement.

 

(f)                                    Change of Control ” shall occur on the date that any one person, entity or group (other than Alfred Slifka, Richard Slifka or Eric Slifka, or their respective family members or entities they control, individually or in the aggregate, directly or indirectly (collectively referred to hereinafter as the “ Slifkas ”)) acquires ownership of the membership interests of the Company that, together with the membership interests of the Company already held by such person, entity or group, constitutes more than 50% of the total voting power of the membership interests of the Company; provided, however, if any one person, entity or group is considered to own more than 50% of the total voting power of the membership interests of the Company, the acquisition of additional membership interests by the same person, entity or group shall not be deemed to be a Change of Control.  The definition of “Change of Control” shall be interpreted, to the extent applicable, to comply with Section 409A(a)(2)(A)(v) of the Internal Revenue Code of 1986 (the “Code”) and any successor statute, and/or guidance thereunder, and the provisions of Treasury Regulation Section 1.409A and any successor regulation and guidance thereto; provided, however, an interpretation in compliance with Section 409A of the Code shall not expand the definition of Change of Control in any way or cause an acquisition by the Slifkas to result in a Change of Control.

 

(g)                                   COBRA ” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

 

(h)                                  Code ” means the Internal Revenue Code of 1986, as amended, and applicable administrative guidance issued thereunder.

 

(i)                                      Date of Termination ” means the date of receipt of the Notice of Termination or any later date specified therein, as the case may be.  For all purposes of this Agreement, the Executive’s Date of Termination shall not occur prior to the date the Executive incurs a “separation from service” within the meaning of Section 409A(a)(2)(A)(i) of the Code.

 

(j)                                     ERISA ” means the Employee Retirement Income Security Act, as amended, and applicable administrative guidance issued thereunder.

 

(k)                                  Good Reason ” means the occurrence of one of the following arising on or after the date such Executive commences participation in this Agreement, as determined in a manner consistent with Treasury Regulation Section 1.409A-1(n)(2)(ii):  (i) any material diminution, without the Executive’s written consent, in the Executive’s working conditions consisting of (A) a material reduction in the Executive’s duties and responsibilities, (B) a material change in the Executive’s title, or (C) a relocation of the Executive’s place of work further than forty (40) miles from Waltham, Massachusetts.  To be able to terminate her employment with the Company for Good Reason, the Executive must provide notice to the Company of the existence of any of the conditions set forth in the immediately preceding sentence within 90 days of the initial existence of such condition(s), and the Company must fail

 

2



 

to remedy such condition(s) within 30 days of such notice.  In no event shall the Date of Termination in connection with Good Reason occur any later than one year following the initial existence of the condition(s) constituting Good Reason hereunder.

 

(l)                                      Notice of Termination ” means a written notice communicated by the Company or the Executive, as applicable, that (i) indicates the specific reason for termination of the Executive’s employment, (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for the termination, and (iii) specifies the Date of Termination.

 

(m)                              Protection Period ” means (i) the three month period ending on the date a Change of Control occurs, and (ii) the twelve month period beginning on the date a Change of Control occurs.

 

(n)                                  Release Expiration Date ” means that date that is 21 days following the date upon which the Company delivers to the Executive the release of claims contemplated in the definition of “Severance Conditions” below or, in the event that such termination is “in connection with an exit incentive or other employment termination program” (as such phrase is defined in the Age Discrimination in Employment Act of 1967, as amended), the date that is 45 days following such delivery date.

 

(o)                                  Severance Conditions ” means the Executive’s execution and delivery to the Company by the Release Expiration date (and non-revocation in any time provided to do so) a release in a form acceptable to the Company, which such release shall be provided by the Company within five (5) days after the Date of Termination and shall release all claims against the Company, its affiliates and their respective predecessors, successors, affiliates, directors, officers, equity holders, partners, managers, members, employees, agents, representatives, insurers and benefit plans (and the fiduciaries and trustees of such plans), with the exception of any claims: (A) to severance as described in this Agreement, (B) vested benefits under an ERISA plan; or (C) that cannot be released by law.

 

(p)                                  Termination Event ” means a termination of the Executive’s employment by the Company for any reason other than for Cause or by the Executive for Good Reason, in either case during the Protection Period .

 

2.                                       Term of Agreement .  The term of this Agreement (the “ Term ”) shall be for a period that commences on the Effective Date and terminates upon the earlier to occur of the sixth anniversary of the Effective Date or a Change of Control; provided, that, if a Change of Control has not occurred by the sixth anniversary of the Effective Date, the Term will be automatically extended for an additional one (1) year period as of the sixth anniversary of the Effective Date and on each anniversary date of the Effective Date occurring thereafter, unless the Board cancels further extension of this Agreement by giving notice to the Executive at least sixty (60) days prior to the applicable extension date.  Upon a Change of Control during the Term, the Term will be extended through the end of the Protection Period, immediately following which time this Agreement will terminate, except to the extent necessary to enable the Executive to enforce her rights under Section 3 of this Agreement.

 

3



 

3.                                       Benefits.

 

(a)                                  Change of Control Payment .  Provided that the Executive has been continuously employed with the Company from the first date of Executive’s participation in this Agreement until the date of the Change of Control, the Executive will receive acceleration of vesting on any and all outstanding Company options, restricted units, phantom units, unit appreciation rights and other similar rights under the Long-Term Incentive Plan held by Executive effective the date of the Change of Control.

 

(b)                                  Termination By the Company Without Cause or By the Executive For Good Reason .  In the event the Executive experiences a Termination Event, then the Company shall, contingent upon the Executive satisfying the Severance Conditions (and, in the case of a termination occurring during the three (3) month period ending on the Change of Control, contingent upon a Sufficiency Determination pursuant to Section 3(c)  below):

 

(i)                                      pay the Executive, within the earlier to occur of the date on which applicable law or Company policy or practice would necessitate payment and 60 days following the Date of Termination (or within 60 days following the occurrence of the Change of Control, in the case of a termination occurring during the three (3) month period ending on the Change of Control), the Accrued Payments;

 

(ii)                                   provide for acceleration of the target incentive amount under the then applicable short term incentive plan for the fiscal year in which the termination occurs, within the earlier to occur of the date on which applicable law or Company policy or practice would necessitate payment and 60 days following the Date of Termination (or within 60 days following the occurrence of the Change of Control, in the case of termination occurring during the three (3) month period ending on the Change of Control);

 

(iii)                                provide for 100% vesting on any and all outstanding Company options, restricted units, phantom units, unit appreciation rights and other similar rights under the Long-Term Incentive Plan held by the Executive as in effect on the Date of Termination, with such accelerated vesting to occur on the later of (A) the Date of Termination or (B) the date of the Change of Control.

 

(c)                                   (i)                                      In the event the Executive experiences a Termination Event in connection with a termination occurring during the three (3) month period ending on the Change of Control for which the Executive believes she is entitled to benefits in accordance with Section 3(b), the Executive shall deliver to the Company a written notice setting forth a description of facts and circumstances constituting evidence that the termination of the Executive’s employment was made in anticipation of the occurrence of a Change of Control and with the intention of avoiding payments under this Agreement, no later than 30 days following the occurrence of the Change of Control.

 

(ii)                                   Within 15 days following receipt of the notice described in Section 3(c)(i) , the Chief Executive Officer of the Company will make a good faith determination, based on the information contained in such notice and any other

 

4



 

information known to the Chief Executive Officer of the Company, whether the Executive’s termination was made in anticipation of the occurrence of a Change of Control and with the intention of avoiding payments under this Agreement.  If the Chief Executive Officer affirmatively determines that the termination was under such circumstances (a “ Sufficiency Determination ”), the Executive will be eligible for and the Company shall provide benefits to the Executive in accordance with Section 3(b) .

 

(iii)                                If the Chief Executive Officer of the Company instead determines that there is insufficient evidence to support a Sufficiency Determination, the Company will promptly inform the Executive of such determination.

 

4.                                       Excise Taxes .  If the Compensation Committee of the Board determines, in its sole discretion, that Section 280G of the Code applies to any compensation payable to the Executive, then the provisions of this Section 4 shall apply.  If any payments or benefits to which the Executive is entitled from the Company, any affiliate, any successor to the Company or an affiliate, or any trusts established by any of the foregoing by reason of, or in connection with, any transaction that occurs after the Effective Date (collectively, the “ Payments ,” which shall include, without limitation, the vesting of any equity awards or other non-cash benefit or property) are, alone or in the aggregate, more likely than not, if paid or delivered to the Executive, to be subject to the tax imposed by Section 4999 of the Code or any successor provisions to that section, then the Payments (beginning with any Payment to be paid in cash hereunder), shall be either (a) reduced (but not below zero) so that the present value of such total Payments received by the Executive will be one dollar ($1.00) less than three times the Executive’s “base amount” (as defined in Section 280G(b)(3) of the Code) and so that no portion of such Payments received by the Executive shall be subject to the excise tax imposed by Section 4999 of the Code, or (b) paid in full, whichever of (a) or (b) produces the better net after tax position to the Executive (taking into account any applicable excise tax under Section 4999 of the Code and any other applicable taxes).  The determination as to whether any Payments are more likely than not to be subject to taxes under Section 4999 of the Code and as to whether reduction or payment in full of the amount of the Payments provided hereunder results in the better net after tax position to the Executive shall be made by the Board and the Executive in good faith.

 

5.                                       Non-Competition Agreement .  As a condition of entering into this Agreement, Executive will execute the Confidentiality, Non-Solicitation, and Non-Competition Agreement that is attached hereto as Exhibit A (the “Non-Competition Agreement”).  Executive acknowledges and agrees that the restrictions set forth in the Non-Competition Agreement are reasonable in all respects and no greater than necessary to protect the Company’s legitimate business interests, including the protection of its confidential information, trade secrets and goodwill.  Executive also acknowledges that in entering into this Agreement, Executive is receiving new consideration above and beyond any consideration to which Executive is entitled but for Executive’s entry into the Non-Competition Agreement, and if Executive fails to execute the Non-Competition Agreement, Executive shall forfeit all rights to payments and benefits granted under this Agreement.

 

5



 

6.                                       General Provisions .

 

(a)                                  Taxes .  The Company is authorized to withhold from any payments made hereunder amounts of withholding and other taxes due or potentially payable in connection therewith, and to take such other action as the Company may deem advisable to enable the Company and the Executive to satisfy obligations for the payment of withholding taxes and other tax obligations relating to any payments made under this Agreement.

 

(b)                                  Offset .  The Company may set off against, and the Executive authorizes the Company to deduct from, any payments due to the Executive, or to her estate, heirs, legal representatives, or successors, any amounts which may be due and owing to the Company or an affiliate by the Executive, whether arising under this Agreement or otherwise; provided that no such offset may be made with respect to amounts payable that are subject to the requirements of Section 409A of the Code unless the offset would not result in a violation of the requirements of Section 409A of the Code.

 

(c)                                   Successors .  This Agreement and all rights hereunder are personal to the Executive and shall not be assignable by the Executive; provided, however, that any amounts that shall become payable under this Agreement prior to the Executive’s death shall inure to the benefit of the Executive’s heirs and other legal representatives, as the case may be.  This Agreement shall bind, and inure to the benefit of, the Company and any successor to the Company pursuant to a Change of Control.  The Company shall require any successor pursuant to a Change of Control to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no succession had taken place.  Upon such assumption by the successor, the Company automatically shall be released from all liability hereunder.  In the event a successor does not assume this Agreement, the benefits payable pursuant to Section 3 will be paid immediately prior to the Change of Control.

 

(d)                                  Unfunded Obligation .  All benefits due to the Executive under this Agreement are unfunded and unsecured and are payable out of the general funds of the Company.

 

(e)                                   Limitation on Rights Conferred .  Neither the Agreement nor any action taken hereunder will be construed as (i) giving the Executive the right to continue in the employ or service of the Company or an affiliate; (ii) interfering in any way with the right of the Company or any affiliate to terminate the Executive’s employment or service at any time; or (iii) giving the Executive any claim to be treated uniformly with other employees.

 

(f)                                    Entire Agreement .  Except as otherwise specifically provided herein, this Agreement constitutes the entire agreement between the parties respecting the subject matter hereof and supersedes any prior agreements respecting severance benefits upon a Change of Control.  No amendment to this Agreement shall be deemed valid unless in writing and signed by the parties.  A waiver of any term, covenant, agreement or condition contained in this Agreement shall not be deemed a waiver of any other term, covenant, agreement or condition, and any waiver of any default in any such term, covenant, agreement or condition shall not be deemed a waiver of any later default thereof or of any other term, covenant, agreement or

 

6



 

condition.  Any disagreements over the payment of amounts under, or otherwise with respect to, this Agreement shall be resolved in accordance with the claims procedures attached hereto as Exhibit B .

 

(g)                                   Severability .  If any provision of the Agreement is held to be illegal or invalid for any reason, the illegality or invalidity will not affect the remaining provisions of the Agreement, but such provision will be fully severable and the Agreement will be construed and enforced as if the illegal or invalid provision had never been included herein.

 

(h)                                  Notices .  Any notice required or permitted to be given by this Agreement shall be effective only if in writing, delivered personally or by courier or by confirmed facsimile transmission or sent by express, registered or certified mail, postage prepaid, (i) to the Executive at the last address she has filed with the Company, and (ii) to the Company at its principal executive offices, or at such other places that either party may designate by notice to the other.

 

(i)                                      Application of Section 409A .  The amounts payable pursuant to Section 3 of this Agreement are intended to comply with the short-term deferral exception to Section 409A of the Code.  To the extent that the Executive is a “specified employee” within the meaning of the Treasury Regulations issued pursuant to Section 409A of the Code (the “ Section 409A Regulations ”) as of the Executive’s Date of Termination, no amount that constitutes a deferral of compensation which is payable on account of the Executive’s separation from service shall be paid to the Executive before the date (the “ Delayed Payment Date ”) which is first day of the seventh month after the Executive’s Date of Termination or, if earlier, the date of the Executive’s death following such Date of Termination.  All such amounts that would, but for this Section 4(i) , become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date.  No interest will be paid by the Company with respect to any such delayed payments.  For purposes of Section 409A of the Code, each payment or amount due under this Agreement shall be considered a separate payment, and the Executive’s entitlement to a series of payments under this Agreement is to be treated as an entitlement to a series of separate payments.

 

(j)                                     Governing Law .  All questions arising with respect to the provisions of the Agreement and payments due hereunder will be determined by application of the laws of the Commonwealth of Massachusetts, other than conflicts of law provisions thereof.

 

(k)                                  Word Usage .  Words used in the masculine shall apply to the feminine, where applicable, and wherever the context of the Agreement dictates, the plural shall be read as the singular and the singular as the plural.

 

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IN WITNESS WHEREOF , the parties hereto have executed this Agreement effective as of the Effective Date.

 

 

 

GLOBAL GP LLC

 

 

 

 

By:

/s/ Edward J. Faneuil

 

 

 

Name: Edward J. Faneuil

 

 

 

Title: Executive Vice President

 

 

 

Date: June 27, 2013

 

 

 

 

 

EXECUTIVE

 

 

 

/s/ Daphne H. Foster

 

 

 

Daphne H. Foster

 

8



 

EXHIBIT A

 

NON-COMPETITION AGREEMENT

 

This Confidentiality, Non-Solicitation and Non-Competition Agreement (this “ Agreement ”) is executed and agreed to as of June 27, 2013, by and between Daphne Foster (“ Employee ”), an individual, and Global GP LLC, together with any successor or assign (the “ Company ”).  Employee’s obligations under this Agreement survive the termination of Employee’s employment regardless of the reason for such termination.

 

WHEREAS, in consideration of Employee’s continued employment in which, the Company contemporaneously with Employee’s entry into this Agreement will promote Employee to the position of Chief Financial Officer, which position is characterized by substantially greater responsibility and compensation; and

 

WHEREAS, as further consideration for executing and agreeing to this Agreement, the Company has entered into that certain Executive Change of Control Agreement and issued that certain Grant of Phantom Units in the Global Partners LP Long Term Incentive Plan, which such consideration the Company would not have provided but for Employee’s entry into this Agreement.

 

NOW, THEREFORE, in consideration of the mutual promises and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Employee, each intending to be legally bound, hereby agree as follows:

 

1.  Protection of Confidential Information; Unauthorized Disclosure

 

(a)   For purposes of this Agreement, “ Confidential Information ” means any and all confidential or proprietary information and materials, as well as all trade secrets, belonging to the Company or its Affiliates.  Confidential Information includes, regardless of whether such information or materials are expressly identified or marked as confidential or proprietary, and whether or not patentable: (1) technical information and materials of the Company or its Affiliates; (2) non-public business information and materials of the Company or its Affiliates; (3) any information or material that gives the Company or its Affiliates an advantage with respect to its competitors by virtue of not being known by those competitors; (4) potential expansion and development plans; projections, forecasts and budgets; growth strategies; marketing plans; pricing information; customer and supplier information; and (5) other valuable, confidential information and materials and/or trade secrets of the Company or its Affiliates.  Notwithstanding the foregoing, Confidential Information shall not include information that (i) is already properly in the public domain or enters the public domain with the express consent of the Company or its Affiliates, or (ii) is intentionally made available by the Company or its Affiliates to third parties without any expectation of confidentiality.

 

(b)   Employee acknowledges and agrees that Confidential Information has been and will be developed or acquired by the Company or its Affiliates through the expenditure of substantial time, effort and money and provides the Company and its Affiliates with an

 

Exhibit A-1



 

advantage over competitors who do not know or use such Confidential Information.  Employee further acknowledges and agrees that the nature of the Confidential Information which the Company has provided Employee and shall provide Employee during Employee’s continued employment would make it difficult, if not impossible, for Employee to perform in a similar capacity for a business competitive with the Company during the Restricted Period without disclosing or utilizing confidential information.

 

(c)   During and following Employee’s employment by the Company, Employee shall hold in confidence and not directly or indirectly disclose or use or copy any Confidential Information except to the extent necessary to carry out Employee’s duties on behalf of the Company.  The foregoing shall not prevent Employee from disclosing Confidential Information if so required by legal process; however, Employee agrees to give the Company notice of any and all attempts to compel disclosure of any Confidential Information within one (1) business day after Employee is informed that such disclosure is being, or will be, compelled.  Such written notice shall include a description of the information to be disclosed, the court, government agency, or other forum through which the disclosure is sought, and the date by which the Confidential Information is to be disclosed, and shall contain a copy of the subpoena, order or other process used to compel disclosure.

 

(d)   Upon the termination of Employee’s employment by the Company, Employee promises to promptly return to the Company all Confidential Information, and all documents and materials (including electronically stored information) in Employee’s possession, custody or control that constitutes or reflects Confidential Information.

 

2.  Non-Competition and Other Restrictive Covenants .

 

(a)   During the remaining term that Employee is employed by the Company and any of its Affiliates and continuing through the date that is two (2) years after the date that Employee is no longer employed by the Company or any of its Affiliates (the “ Restricted Period ”), Employee shall be prohibited from directly or indirectly working (as an employee, consultant, advisor, director or otherwise) for, engaging in or acquiring or investing in any business engaged in (or actively considering engagement in) the following businesses within the Restricted Area: (a) wholesale and/or retail marketing, sale, distribution and transportation of refined petroleum products, crude oil, renewable fuels (including ethanol and biofuels), natural gas liquids (including ethane, butane, propane and condensates), natural gas, compressed natural gas and liquefied natural gas; (b) the storage of refined petroleum products and/or any of the other products identified in clause (a) of this paragraph in connection with any of the activities described in said clause (a); (c) the sale of convenience store items and sundries and related food service related to the retail sale of gasoline; and (d) bunkering (such business activities referenced in parts (a) through (d) are referred to as the “ Restricted Business ”).

 

(b)   During the Restricted Period, Employee also shall not directly or indirectly solicit any employees, contractors, vendors, suppliers or customers of the Company or its Affiliates to cease to be employed by or otherwise do business with the Company or its Affiliates, or to reduce the same, or to be employed or otherwise do business with any person or entity engaged in the Restricted Business.

 

Exhibit A-2



 

(c)   As used herein, the “ Restricted Area” consists of: (i) the United States and Canada; and (ii) any other geographic area where the Company conducts business during the period of Employee’s employment with the Company or its Affiliates and for which Employee has had material responsibilities during the course of Employee’s employment with the Company or its Affiliate, or about which such business Employee has obtained material Confidential Information during such employment.

 

(d)   If any court construes any of the provisions of this Section 2, or any part thereof, to be unreasonable because of the duration of such provision or the geographic scope thereof, such court shall have the power to reduce the duration or restrict the geographic scope of such provision and to enforce such provision as so reduced or restricted.

 

(e)   Employee expressly acknowledges and agrees that the restrictions set forth in this Agreement are reasonable in all respects and no greater than necessary to protect the Company’s legitimate business interests, including the protection of its Confidential Information and goodwill.  Employee further represents that enforcement of this Agreement is in the public interest and that Employee would not suffer undue hardship as the result of such enforcement, and that the Company’s need for the protections afforded by this Agreement is greater than any hardship Employee might experience by complying with its terms.

 

3.  Right to Injunction .  Employee acknowledges that Employee’s violation or threatened or attempted violation of the covenants contained in this Agreement will cause irreparable harm to the Company and that money damages would not be sufficient remedy for any breach of these sections.  Employee agrees that the Company shall be entitled as a matter of right to specific performance of the covenants in this Agreement, including entry of an ex parte temporary restraining order in state or federal court, preliminary and permanent injunctive relief against activities in violation of this Agreement, or both, or other appropriate judicial remedy, writ or order, in any court of competent jurisdiction, restraining any violation or further violation of such agreements by Employee or others acting on Employee’s behalf, without any showing of irreparable harm and without any showing that the Company does not have an adequate remedy at law.  Such remedies shall be in addition to all other remedies available to the Company, both at law and equity.

 

4.  Long Term Incentive Plan Agreement and Change in Control Agreements Employee acknowledges that Employee’s entry into this Agreement is a condition of the Company’s Grant of Phantom Units under the Global Partners LP Long-Term Incentive Plan and the Company’s entry into that certain Executive Change of Control Agreement.  Employee acknowledges and agrees that, in entering into this Agreement, Employee is receiving new consideration to which Employee was not otherwise entitled but for Employee’s entry into this Agreement.

 

Exhibit A-3



 

5.  Miscellaneous .

 

(a)  Modification .  Subject to the provisions of Section 2(d), both parties agree that neither has the authority to modify or amend this Agreement unless the modification or amendment is in writing and signed by both of them.

 

(b)  Severability .  If any term, provision, covenant or condition of this Agreement (or part thereof) is held by a court of competent jurisdiction to be illegal, invalid, unenforceable or void, the validity and enforceability of the remainder of this Agreement shall not in any way be affected, impaired or invalidated.

 

(c)  Survival .  Employee’s obligations under this Agreement shall survive the termination for whatever reason of Employee’s employment. 

 

(d)  Assignment .  Employee shall not assign, pledge or encumber any interest in this Agreement or any part thereof without the express written consent of the Company, this Agreement being personal to Employee.  The Company may assign this Agreement to, and shall bind, a successor to its business without the requirement of a consent by Employee.  If the Company shall merge or consolidate with or into, or transfer substantially all of its assets to, another corporation or other form of business organization, then this Agreement shall bind the successor of the Company resulting from such merger, consolidation or transfer.

 

(e)  Third Party Beneficiaries .  Each Affiliate of the Company shall be a third party beneficiary of Employee’s obligations under the provisions of this Agreement and shall have the right to enforce this Agreement as if a party hereto.  As used herein, the term “ Affiliate ” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question.  As used herein, the term “ control ” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.  “ Person ” means any individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.

 

6.  Employee’s Representations .

 

(a)   Employee represents and warrants to the Company that (i) Employee does not have any agreement with any prior employer or other third party that will prohibit Employee from working for the Company or fulfilling the Employee’s duties and obligations to the Company, and (ii) Employee has complied with all non-competition, non-solicitation, and confidentiality duties imposed on Employee with respect to Employee’s former employers and other third parties.

 

(b)   Employee is a sophisticated executive, has had sufficient time to carefully consider the terms of this Agreement including any future hardship that entering into this Agreement may cause, has had sufficient opportunity to consult an attorney, and enters into this Agreement knowingly and voluntarily with full understanding of this Agreement’s terms.

 

Exhibit A-4



 

7.  Choice of Law; Dispute Resolution .  This Agreement shall be governed by and construed in accordance with the substantive laws of the Commonwealth of Massachusetts.  Any dispute arising out of, or relating to this Agreement shall be subject to the exclusive jurisdiction of the state or federal courts, as applicable, with jurisdiction over Waltham, Massachusetts.  Employee expressly acknowledges the reasonableness and appropriateness of such forum(s) and venues and agrees not to contest such forum or venue selection.

 

8.  At-Will Employment .  Nothing in this Agreement will alter the at-will nature of Employee’s employment, as either Employee or the Company may terminate Employee’s employment at any time.

 

I HAVE READ THIS AGREEMENT CAREFULLY, AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS THAT IT IMPOSES UPON ME WITHOUT RESERVATION.  I SIGN THIS AGREEMENT VOLUNTARILY AND FREELY.

 

COMPANY:

 

EMPLOYEE:

 

 

 

 

 

 

By:

/s/ Edward J. Faneuil

 

By:

/s/ Daphne H. Foster

 

 

 

 

 

Name:

Edward J. Faneuil

 

Date:

June 27, 2013

 

 

 

 

 

Title:

Executive Vice President

 

 

 

 

 

 

 

 

Date:

June 27, 2013

 

 

 

 

Exhibit A-5



 

EXHIBIT B

 

CLAIMS PROCEDURES

 

(a)           Any individual who believes that he or she has been denied a benefit to which he or she is entitled under this Agreement (hereinafter referred to as a “ Claimant ”) may file a written request for such benefit with the Board.  In order to file a claim for benefits under this Agreement, the Claimant must submit to the Board a written claim for benefits containing a description of (i) an alleged failure to receive a benefit payable under this Agreement or (ii) an alleged discrepancy between the amount of a benefit owed and the amount of a benefit the Claimant received under this Agreement.  In connection with the submission of a claim, the Claimant may examine this Agreement and any other relevant documents relating to his or her claim, and the Claimant may submit written comments relating to such claim to the Board.  If the Claimant needs additional information regarding his or her claim for benefits, the Claimant can submit a written request to the Board for such information.  Failure to furnish a written claim description or to otherwise comply with this claim submission procedure shall invalidate the Claimant’s claim unless the Board determines that it was not reasonably possible to comply with such procedure.

 

(b)           A Claimant shall be permitted to examine any relevant document relating to his or her claim and submit written comments or other information to the Board to supplement his or her claim.  Within 90 days from the date the Claimant filed the claim (or such longer period as may be necessary due to unusual circumstances or to enable the Claimant to submit written comments, but in any event no longer than the time period described in clause (c) hereof), the Board shall make a decision as to whether the claim is to be approved, modified, or denied.  If the Board approves the claim, then the Company shall process the claim as soon as administratively practicable.

 

(c)           In the event of an “ Adverse Benefit Determination ” (which includes a denial or modification of a Claimant’s claim, or an invalidation for failing to follow this claim submission procedure), the Claimant shall be notified in writing not later than 90 days following the date the Claimant filed his or her claim (or within 180 days under special circumstances, in which case the Claimant will be informed of the extension and the circumstances requiring the extension in writing prior to its commencement) of the following:

 

(i)            The specific reason or reasons for the Adverse Benefit Determination;

 

(ii)           The provisions of this Agreement upon which the Adverse Benefit Determination is based;

 

(iii)          Any additional material or information necessary to perfect the claim and the reasons why such material or information is necessary;

 

(iv)          The claims review procedure set forth in this Agreement; and

 

Exhibit B-1



 

(v)           A description of the Claimant’s right to bring a civil action under the Employee Retirement Income Security Act of 1974, as amended (“ ERISA ”), with respect to the Adverse Benefit Determination.

 

(d)           Within 60 days following receipt of an Adverse Benefit Determination, the Claimant may submit a written request to the Board for review of such determination.  During this review process, the Claimant shall have the opportunity to submit written comments and other information relating to his or her claim and the Claimant shall have reasonable access to, and copies of, all documents and other information related to his or her claim free of charge.  Any items the Claimant submits to the Board shall be considered without regard to whether such items were considered in the initial benefit determination.

 

(e)           Within 60 days following the Claimant’s request for review (or within 120 days under special circumstances, in which case the Claimant will receive written notice of the extension and the circumstances requiring the extension prior to its commencement), the Board must, after providing the Claimant with a full and fair review, render its final decision in writing (or electronically) to the Claimant.  However, the review process may be delayed if the Claimant fails to provide information that is requested by the Board.  If the Board approves the claim on review, then the Company shall process the claim as soon as administratively practicable.  In the event of an Adverse Benefit Determination on review, the Board’s final decision shall include:

 

(i)            The specific reason or reasons for the Adverse Benefit Determination;

 

(ii)           The provisions of this Agreement upon which the Adverse Benefit Determination is based;

 

(iii)          A statement that the Claimant is entitled to reasonable access to, and copies of, all documents and other information related to the claim free of charge; and

 

(iv)          A description of the Claimant’s right to bring a civil action under ERISA with respect to the Adverse Benefit Determination.

 

(f)            A Claimant may, by submitting a written statement to the Company, authorize an individual or entity to pursue his or her claim for benefits under this Agreement and/or the Claimant’s request for a review of an Adverse Benefit Determination made with respect to his or her claim.

 

Exhibit B-2


Exhibit 10.4

 

EXECUTIVE CHANGE OF CONTROL AGREEMENT

 

THIS CHANGE OF CONTROL AGREEMENT (the “ Agreement ”) is entered into effective as of July 1, 2013 (the “ Effective Date ”), by and between Global GP LLC, a Delaware limited liability company, (the “ Company ”) and Mark Romaine (“ Executive ”).

 

W I T N E S S E T H :

 

WHEREAS , the Company is the general partner of Global Partners LP, a Delaware limited partnership (the “ Partnership ”);

 

WHEREAS , the Executive is currently employed by the Company and is an integral part of the management of the Company;

 

WHEREAS , the Company desires to attract and retain certain key management personnel such as the Executive and, accordingly, desires to enter into a change of control severance agreement with the Executive in order to encourage his continued service to the Company; and

 

WHEREAS , the Executive is prepared to commit such services in return for specific arrangements with respect to change of control severance compensation.

 

NOW, THEREFORE , in consideration of the foregoing and for other good and valuable consideration, the Company and Executive agree as follows:

 

1.                                       Definitions .  For purposes of this Agreement, the terms listed below will have the meanings specified herein:

 

(a)                                  Accrued Payments ” means (i) any unpaid Base Salary through the Date of Termination (but calculated at the rate then in effect), (ii) any earned but unpaid Bonus, (iii) all accrued vacation, expenses reimbursements and other benefits (other than severance), and (iv) any and all other amounts that may be due to him as of the Date of Termination.

 

(b)                                  Base Salary ” means the amount the Executive is entitled to receive as wages or salary on an annualized basis, calculated as of the Date of Termination or, if greater, before any reduction not consented to by the Executive.

 

(c)                                   Board ” means the board of directors of the Company.

 

(d)                                  Bonus ” means any discretionary cash bonus to which the Executive is entitled.

 

(e)                                   Cause ” means the Executive (i) has engaged in gross negligence or willful misconduct in the performance of his duties, (ii) has committed an act of fraud, embezzlement or willful breach of fiduciary duty to the Company or any of its subsidiaries (including the unauthorized disclosure of any material secret, confidential and/or proprietary information, knowledge or data of the Company or any of its subsidiaries); (iii) has been

 



 

convicted of (or pleaded no contest to) a crime involving fraud, dishonesty or moral turpitude or any felony or (iv) has breached any material provision of the Non-Competition Agreement (referenced in Section 5 and attached as Exhibit A ), which breach is not cured within thirty (30) days of Executive’s receipt of written notice of such breach; provided, however, there shall be no opportunity to cure a breach of the Non-Competition Agreement.

 

(f)                                    Change of Control ” shall occur on the date that any one person, entity or group (other than Alfred Slifka, Richard Slifka or Eric Slifka, or their respective family members or entities they control, individually or in the aggregate, directly or indirectly (collectively referred to hereinafter as the “ Slifkas ”)) acquires ownership of the membership interests of the Company that, together with the membership interests of the Company already held by such person, entity or group, constitutes more than 50% of the total voting power of the membership interests of the Company; provided, however, if any one person, entity or group is considered to own more than 50% of the total voting power of the membership interests of the Company, the acquisition of additional membership interests by the same person, entity or group shall not be deemed to be a Change of Control.  The definition of “Change of Control” shall be interpreted, to the extent applicable, to comply with Section 409A(a)(2)(A)(v) of the Internal Revenue Code of 1986 (the “Code”) and any successor statute, and/or guidance thereunder, and the provisions of Treasury Regulation Section 1.409A and any successor regulation and guidance thereto; provided, however, an interpretation in compliance with Section 409A of the Code shall not expand the definition of Change of Control in any way or cause an acquisition by the Slifkas to result in a Change of Control.

 

(g)                                   COBRA ” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

 

(h)                                  Code ” means the Internal Revenue Code of 1986, as amended, and applicable administrative guidance issued thereunder.

 

(i)                                      Date of Termination ” means the date of receipt of the Notice of Termination or any later date specified therein, as the case may be.  For all purposes of this Agreement, the Executive’s Date of Termination shall not occur prior to the date the Executive incurs a “separation from service” within the meaning of Section 409A(a)(2)(A)(i) of the Code.

 

(j)                                     ERISA ” means the Employee Retirement Income Security Act, as amended, and applicable administrative guidance issued thereunder.

 

(k)                                  Good Reason ” means the occurrence of one of the following arising on or after the date such Executive commences participation in this Agreement, as determined in a manner consistent with Treasury Regulation Section 1.409A-1(n)(2)(ii):  (i) any material diminution, without the Executive’s written consent, in the Executive’s working conditions consisting of (A) a material reduction in the Executive’s duties and responsibilities, (B) a material change in the Executive’s title, or (C) a relocation of the Executive’s place of work further than forty (40) miles from Waltham, Massachusetts.  To be able to terminate his employment with the Company for Good Reason, the Executive must provide notice to the Company of the existence of any of the conditions set forth in the immediately preceding sentence within 90 days of the initial existence of such condition(s), and the Company must fail

 

2



 

to remedy such condition(s) within 30 days of such notice.  In no event shall the Date of Termination in connection with Good Reason occur any later than one year following the initial existence of the condition(s) constituting Good Reason hereunder.

 

(l)                                      Notice of Termination ” means a written notice communicated by the Company or the Executive, as applicable, that (i) indicates the specific reason for termination of the Executive’s employment, (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for the termination, and (iii) specifies the Date of Termination.

 

(m)                              Protection Period ” means (i) the three month period ending on the date a Change of Control occurs, and (ii) the twelve month period beginning on the date a Change of Control occurs.

 

(n)                                  Release Expiration Date ” means that date that is 21 days following the date upon which the Company delivers to the Executive the release of claims contemplated in the definition of “Severance Conditions” below or, in the event that such termination is “in connection with an exit incentive or other employment termination program” (as such phrase is defined in the Age Discrimination in Employment Act of 1967, as amended), the date that is 45 days following such delivery date.

 

(o)                                  Severance Conditions ” means the Executive’s execution and delivery to the Company by the Release Expiration date (and non-revocation in any time provided to do so) a release in a form acceptable to the Company, which such release shall be provided by the Company within five (5) days after the Date of Termination and shall release all claims against the Company, its affiliates and their respective predecessors, successors, affiliates, directors, officers, equity holders, partners, managers, members, employees, agents, representatives, insurers and benefit plans (and the fiduciaries and trustees of such plans), with the exception of any claims: (A) to severance as described in this Agreement, (B) vested benefits under an ERISA plan; or (C) that cannot be released by law.

 

(p)                                  Termination Event ” means a termination of the Executive’s employment by the Company for any reason other than for Cause or by the Executive for Good Reason, in either case during the Protection Period .

 

2.                                       Term of Agreement .  The term of this Agreement (the “ Term ”) shall be for a period that commences on the Effective Date and terminates upon the earlier to occur of the sixth anniversary of the Effective Date or a Change of Control; provided, that, if a Change of Control has not occurred by the sixth anniversary of the Effective Date, the Term will be automatically extended for an additional one (1) year period as of the sixth anniversary of the Effective Date and on each anniversary date of the Effective Date occurring thereafter, unless the Board cancels further extension of this Agreement by giving notice to the Executive at least sixty (60) days prior to the applicable extension date.  Upon a Change of Control during the Term, the Term will be extended through the end of the Protection Period, immediately following which time this Agreement will terminate, except to the extent necessary to enable the Executive to enforce his rights under Section 3 of this Agreement.

 

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3.                                       Benefits.

 

(a)                                  Change of Control Payment .  Provided that the Executive has been continuously employed with the Company from the first date of Executive’s participation in this Agreement until the date of the Change of Control, the Executive will receive acceleration of vesting on any and all outstanding Company options, restricted units, phantom units, unit appreciation rights and other similar rights under the Long-Term Incentive Plan held by Executive effective the date of the Change of Control.

 

(b)                                  Termination By the Company Without Cause or By the Executive For Good Reason .  In the event the Executive experiences a Termination Event, then the Company shall, contingent upon the Executive satisfying the Severance Conditions (and, in the case of a termination occurring during the three (3) month period ending on the Change of Control, contingent upon a Sufficiency Determination pursuant to Section 3(c)  below):

 

(i)                                      pay the Executive, within the earlier to occur of the date on which applicable law or Company policy or practice would necessitate payment and 60 days following the Date of Termination (or within 60 days following the occurrence of the Change of Control, in the case of a termination occurring during the three (3) month period ending on the Change of Control), the Accrued Payments;

 

(ii)                                   provide for acceleration of the target incentive amount under the then applicable short term incentive plan for the fiscal year in which the termination occurs, within the earlier to occur of the date on which applicable law or Company policy or practice would necessitate payment and 60 days following the Date of Termination (or within 60 days following the occurrence of the Change of Control, in the case of termination occurring during the three (3) month period ending on the Change of Control);

 

(iii)                                provide for 100% vesting on any and all outstanding Company options, restricted units, phantom units, unit appreciation rights and other similar rights under the Long-Term Incentive Plan held by the Executive as in effect on the Date of Termination, with such accelerated vesting to occur on the later of (A) the Date of Termination or (B) the date of the Change of Control.

 

(c)                                   (i)                                      In the event the Executive experiences a Termination Event in connection with a termination occurring during the three (3) month period ending on the Change of Control for which the Executive believes he is entitled to benefits in accordance with Section 3(b), the Executive shall deliver to the Company a written notice setting forth a description of facts and circumstances constituting evidence that the termination of the Executive’s employment was made in anticipation of the occurrence of a Change of Control and with the intention of avoiding payments under this Agreement, no later than 30 days following the occurrence of the Change of Control.

 

(ii)                                   Within 15 days following receipt of the notice described in Section 3(c)(i) , the Chief Executive Officer of the Company, will make a good faith determination, based on the information contained in such notice and any other

 

4



 

information known to the Chief Executive Officer of the Company, whether the Executive’s termination was made in anticipation of the occurrence of a Change of Control and with the intention of avoiding payments under this Agreement.  If the Chief Executive Officer affirmatively determines that the termination was under such circumstances (a “ Sufficiency Determination ”), the Executive will be eligible for and the Company shall provide benefits to the Executive in accordance with Section 3(b) .

 

(iii)                                If the Chief Executive Officer of the Company instead determines that there is insufficient evidence to support a Sufficiency Determination, the Company will promptly inform the Executive of such determination.

 

4.                                       Excise Taxes .  If the Compensation Committee of the Board determines, in its sole discretion, that Section 280G of the Code applies to any compensation payable to the Executive, then the provisions of this Section 4 shall apply.  If any payments or benefits to which the Executive is entitled from the Company, any affiliate, any successor to the Company or an affiliate, or any trusts established by any of the foregoing by reason of, or in connection with, any transaction that occurs after the Effective Date (collectively, the “ Payments ,” which shall include, without limitation, the vesting of any equity awards or other non-cash benefit or property) are, alone or in the aggregate, more likely than not, if paid or delivered to the Executive, to be subject to the tax imposed by Section 4999 of the Code or any successor provisions to that section, then the Payments (beginning with any Payment to be paid in cash hereunder), shall be either (a) reduced (but not below zero) so that the present value of such total Payments received by the Executive will be one dollar ($1.00) less than three times the Executive’s “base amount” (as defined in Section 280G(b)(3) of the Code) and so that no portion of such Payments received by the Executive shall be subject to the excise tax imposed by Section 4999 of the Code, or (b) paid in full, whichever of (a) or (b) produces the better net after tax position to the Executive (taking into account any applicable excise tax under Section 4999 of the Code and any other applicable taxes).  The determination as to whether any Payments are more likely than not to be subject to taxes under Section 4999 of the Code and as to whether reduction or payment in full of the amount of the Payments provided hereunder results in the better net after tax position to the Executive shall be made by the Board and the Executive in good faith.

 

5.                                       Non-Competition Agreement .  As a condition of entering into this Agreement, Executive will execute the Confidentiality, Non-Solicitation, and Non-Competition Agreement that is attached hereto as Exhibit A (the “Non-Competition Agreement”).  Executive acknowledges and agrees that the restrictions set forth in the Non-Competition Agreement are reasonable in all respects and no greater than necessary to protect the Company’s legitimate business interests, including the protection of its confidential information, trade secrets and goodwill.  Executive also acknowledges that in entering into this Agreement, Executive is receiving new consideration above and beyond any consideration to which Executive is entitled but for Executive’s entry into the Non-Competition Agreement, and if Executive fails to execute the Non-Competition Agreement, Executive shall forfeit all rights to payments and benefits granted under this Agreement.

 

5



 

6.                                       General Provisions .

 

(a)                                  Taxes .  The Company is authorized to withhold from any payments made hereunder amounts of withholding and other taxes due or potentially payable in connection therewith, and to take such other action as the Company may deem advisable to enable the Company and the Executive to satisfy obligations for the payment of withholding taxes and other tax obligations relating to any payments made under this Agreement.

 

(b)                                  Offset .  The Company may set off against, and the Executive authorizes the Company to deduct from, any payments due to the Executive, or to his estate, heirs, legal representatives, or successors, any amounts which may be due and owing to the Company or an affiliate by the Executive, whether arising under this Agreement or otherwise; provided that no such offset may be made with respect to amounts payable that are subject to the requirements of Section 409A of the Code unless the offset would not result in a violation of the requirements of Section 409A of the Code.

 

(c)                                   Successors .  This Agreement and all rights hereunder are personal to the Executive and shall not be assignable by the Executive; provided, however, that any amounts that shall become payable under this Agreement prior to the Executive’s death shall inure to the benefit of the Executive’s heirs and other legal representatives, as the case may be.  This Agreement shall bind, and inure to the benefit of, the Company and any successor to the Company pursuant to a Change of Control.  The Company shall require any successor pursuant to a Change of Control to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no succession had taken place.  Upon such assumption by the successor, the Company automatically shall be released from all liability hereunder.  In the event a successor does not assume this Agreement, the benefits payable pursuant to Section 3 will be paid immediately prior to the Change of Control.

 

(d)                                  Unfunded Obligation .  All benefits due to the Executive under this Agreement are unfunded and unsecured and are payable out of the general funds of the Company.

 

(e)                                   Limitation on Rights Conferred .  Neither the Agreement nor any action taken hereunder will be construed as (i) giving the Executive the right to continue in the employ or service of the Company or an affiliate; (ii) interfering in any way with the right of the Company or any affiliate to terminate the Executive’s employment or service at any time; or (iii) giving the Executive any claim to be treated uniformly with other employees.

 

(f)                                    Entire Agreement .  Except as otherwise specifically provided herein, this Agreement constitutes the entire agreement between the parties respecting the subject matter hereof and supersedes any prior agreements respecting severance benefits upon a Change of Control.  No amendment to this Agreement shall be deemed valid unless in writing and signed by the parties.  A waiver of any term, covenant, agreement or condition contained in this Agreement shall not be deemed a waiver of any other term, covenant, agreement or condition, and any waiver of any default in any such term, covenant, agreement or condition shall not be deemed a waiver of any later default thereof or of any other term, covenant, agreement or

 

6



 

condition.  Any disagreements over the payment of amounts under, or otherwise with respect to, this Agreement shall be resolved in accordance with the claims procedures attached hereto as Exhibit B .

 

(g)                                   Severability .  If any provision of the Agreement is held to be illegal or invalid for any reason, the illegality or invalidity will not affect the remaining provisions of the Agreement, but such provision will be fully severable and the Agreement will be construed and enforced as if the illegal or invalid provision had never been included herein.

 

(h)                                  Notices .  Any notice required or permitted to be given by this Agreement shall be effective only if in writing, delivered personally or by courier or by confirmed facsimile transmission or sent by express, registered or certified mail, postage prepaid, (i) to the Executive at the last address he has filed with the Company, and (ii) to the Company at its principal executive offices, or at such other places that either party may designate by notice to the other.

 

(i)                                      Application of Section 409A .  The amounts payable pursuant to Section 3 of this Agreement are intended to comply with the short-term deferral exception to Section 409A of the Code.  To the extent that the Executive is a “specified employee” within the meaning of the Treasury Regulations issued pursuant to Section 409A of the Code (the “ Section 409A Regulations ”) as of the Executive’s Date of Termination, no amount that constitutes a deferral of compensation which is payable on account of the Executive’s separation from service shall be paid to the Executive before the date (the “ Delayed Payment Date ”) which is first day of the seventh month after the Executive’s Date of Termination or, if earlier, the date of the Executive’s death following such Date of Termination.  All such amounts that would, but for this Section 4(i) , become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date.  No interest will be paid by the Company with respect to any such delayed payments.  For purposes of Section 409A of the Code, each payment or amount due under this Agreement shall be considered a separate payment, and the Executive’s entitlement to a series of payments under this Agreement is to be treated as an entitlement to a series of separate payments.

 

(j)                                     Governing Law .  All questions arising with respect to the provisions of the Agreement and payments due hereunder will be determined by application of the laws of the Commonwealth of Massachusetts, other than conflicts of law provisions thereof.

 

(k)                                  Word Usage .  Words used in the masculine shall apply to the feminine, where applicable, and wherever the context of the Agreement dictates, the plural shall be read as the singular and the singular as the plural.

 

7



 

IN WITNESS WHEREOF , the parties hereto have executed this Agreement effective as of the Effective Date.

 

 

 

GLOBAL GP LLC

 

 

 

By:

/s/ Edward J. Faneuil

 

 

 

 

Name: Edward J. Faneuil

 

 

 

Title: Executive Vice President

 

 

 

Date: June 27, 2013

 

 

 

 

 

EXECUTIVE

 

 

 

/s/ Mark Romaine

 

 

 

Mark Romaine

 

8



 

EXHIBIT A

 

NON-COMPETITION AGREEMENT

 

This Confidentiality, Non-Solicitation and Non-Competition Agreement (this “ Agreement ”) is executed and agreed to as of June 27, 2013, by and between Mark Romaine (“ Employee ”), an individual, and Global GP LLC, together with any successor or assign (the “ Company ”).  Employee’s obligations under this Agreement survive the termination of Employee’s employment regardless of the reason for such termination.

 

WHEREAS, in consideration of Employee’s continued employment in which, the Company contemporaneously with Employee’s entry into this Agreement will promote Employee to the position of Chief Operating Officer, which position is characterized by substantially greater responsibility and compensation; and

 

WHEREAS, as further consideration for executing and agreeing to this Agreement, the Company has entered into that certain Executive Change of Control Agreement and issued that certain Grant of Phantom Units in the Global Partners LP Long Term Incentive Plan, which such consideration the Company would not have provided but for Employee’s entry into this Agreement.

 

NOW, THEREFORE, in consideration of the mutual promises and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Employee, each intending to be legally bound, hereby agree as follows:

 

1.   Protection of Confidential Information; Unauthorized Disclosure

 

(a)   For purposes of this Agreement, “ Confidential Information ” means any and all confidential or proprietary information and materials, as well as all trade secrets, belonging to the Company or its Affiliates.  Confidential Information includes, regardless of whether such information or materials are expressly identified or marked as confidential or proprietary, and whether or not patentable: (1) technical information and materials of the Company or its Affiliates; (2) non-public business information and materials of the Company or its Affiliates; (3) any information or material that gives the Company or its Affiliates an advantage with respect to its competitors by virtue of not being known by those competitors; (4) potential expansion and development plans; projections, forecasts and budgets; growth strategies; marketing plans; pricing information; customer and supplier information; and (5) other valuable, confidential information and materials and/or trade secrets of the Company or its Affiliates.  Notwithstanding the foregoing, Confidential Information shall not include information that (i) is already properly in the public domain or enters the public domain with the express consent of the Company or its Affiliates, or (ii) is intentionally made available by the Company or its Affiliates to third parties without any expectation of confidentiality.

 

(b)   Employee acknowledges and agrees that Confidential Information has been and will be developed or acquired by the Company or its Affiliates through the expenditure of substantial time, effort and money and provides the Company and its Affiliates with an

 

Exhibit A-1



 

advantage over competitors who do not know or use such Confidential Information.  Employee further acknowledges and agrees that the nature of the Confidential Information which the Company has provided Employee and shall provide Employee during Employee’s continued employment would make it difficult, if not impossible, for Employee to perform in a similar capacity for a business competitive with the Company during the Restricted Period without disclosing or utilizing confidential information.

 

(c)   During and following Employee’s employment by the Company, Employee shall hold in confidence and not directly or indirectly disclose or use or copy any Confidential Information except to the extent necessary to carry out Employee’s duties on behalf of the Company.  The foregoing shall not prevent Employee from disclosing Confidential Information if so required by legal process; however, Employee agrees to give the Company notice of any and all attempts to compel disclosure of any Confidential Information within one (1) business day after Employee is informed that such disclosure is being, or will be, compelled.  Such written notice shall include a description of the information to be disclosed, the court, government agency, or other forum through which the disclosure is sought, and the date by which the Confidential Information is to be disclosed, and shall contain a copy of the subpoena, order or other process used to compel disclosure.

 

(d)   Upon the termination of Employee’s employment by the Company, Employee promises to promptly return to the Company all Confidential Information, and all documents and materials (including electronically stored information) in Employee’s possession, custody or control that constitutes or reflects Confidential Information.

 

2.   Non-Competition and Other Restrictive Covenants .

 

(a)   During the remaining term that Employee is employed by the Company and any of its Affiliates and continuing through the date that is two (2) years after the date that Employee is no longer employed by the Company or any of its Affiliates (the “ Restricted Period ”), Employee shall be prohibited from directly or indirectly working (as an employee, consultant, advisor, director or otherwise) for, engaging in or acquiring or investing in any business engaged in (or actively considering engagement in) the following businesses within the Restricted Area: (a) wholesale and/or retail marketing, sale, distribution and transportation of refined petroleum products, crude oil, renewable fuels (including ethanol and biofuels), natural gas liquids (including ethane, butane, propane and condensates), natural gas, compressed natural gas and liquefied natural gas; (b) the storage of refined petroleum products and/or any of the other products identified in clause (a) of this paragraph in connection with any of the activities described in said clause (a); (c) the sale of convenience store items and sundries and related food service related to the retail sale of gasoline; and (d) bunkering (such business activities referenced in parts (a) through (d) are referred to as the “ Restricted Business ”).

 

(b)   During the Restricted Period, Employee also shall not directly or indirectly solicit any employees, contractors, vendors, suppliers or customers of the Company or its Affiliates to cease to be employed by or otherwise do business with the Company or its Affiliates, or to reduce the same, or to be employed or otherwise do business with any person or entity engaged in the Restricted Business.

 

Exhibit A-2



 

(c)   As used herein, the “ Restricted Area” consists of: (i) the United States and Canada; and (ii) any other geographic area where the Company conducts business during the period of Employee’s employment with the Company or its Affiliates and for which Employee has had material responsibilities during the course of Employee’s employment with the Company or its Affiliate, or about which such business Employee has obtained material Confidential Information during such employment.

 

(d)   If any court construes any of the provisions of this Section 2, or any part thereof, to be unreasonable because of the duration of such provision or the geographic scope thereof, such court shall have the power to reduce the duration or restrict the geographic scope of such provision and to enforce such provision as so reduced or restricted.

 

(e)   Employee expressly acknowledges and agrees that the restrictions set forth in this Agreement are reasonable in all respects and no greater than necessary to protect the Company’s legitimate business interests, including the protection of its Confidential Information and goodwill.  Employee further represents that enforcement of this Agreement is in the public interest and that Employee would not suffer undue hardship as the result of such enforcement, and that the Company’s need for the protections afforded by this Agreement is greater than any hardship Employee might experience by complying with its terms.

 

3.   Right to Injunction .  Employee acknowledges that Employee’s violation or threatened or attempted violation of the covenants contained in this Agreement will cause irreparable harm to the Company and that money damages would not be sufficient remedy for any breach of these sections.  Employee agrees that the Company shall be entitled as a matter of right to specific performance of the covenants in this Agreement, including entry of an ex parte temporary restraining order in state or federal court, preliminary and permanent injunctive relief against activities in violation of this Agreement, or both, or other appropriate judicial remedy, writ or order, in any court of competent jurisdiction, restraining any violation or further violation of such agreements by Employee or others acting on Employee’s behalf, without any showing of irreparable harm and without any showing that the Company does not have an adequate remedy at law.  Such remedies shall be in addition to all other remedies available to the Company, both at law and equity.

 

4.   Long Term Incentive Plan Agreement and Change in Control Agreements Employee acknowledges that Employee’s entry into this Agreement is a condition of the Company’s Grant of Phantom Units under the Global Partners LP Long-Term Incentive Plan and the Company’s entry into that certain Executive Change of Control Agreement.  Employee acknowledges and agrees that, in entering into this Agreement, Employee is receiving new consideration to which Employee was not otherwise entitled but for Employee’s entry into this Agreement.

 

Exhibit A-3



 

5.   Miscellaneous .

 

(a)   Modification .  Subject to the provisions of Section 2(d), both parties agree that neither has the authority to modify or amend this Agreement unless the modification or amendment is in writing and signed by both of them.

 

(b)   Severability .  If any term, provision, covenant or condition of this Agreement (or part thereof) is held by a court of competent jurisdiction to be illegal, invalid, unenforceable or void, the validity and enforceability of the remainder of this Agreement shall not in any way be affected, impaired or invalidated.

 

(c)   Survival .  Employee’s obligations under this Agreement shall survive the termination for whatever reason of Employee’s employment.  .

 

(d)   Assignment .  Employee shall not assign, pledge or encumber any interest in this Agreement or any part thereof without the express written consent of the Company, this Agreement being personal to Employee.  The Company may assign this Agreement to, and shall bind, a successor to its business without the requirement of a consent by Employee.  If the Company shall merge or consolidate with or into, or transfer substantially all of its assets to, another corporation or other form of business organization, then this Agreement shall bind the successor of the Company resulting from such merger, consolidation or transfer.

 

(e)   Third Party Beneficiaries .  Each Affiliate of the Company shall be a third party beneficiary of Employee’s obligations under the provisions of this Agreement and shall have the right to enforce this Agreement as if a party hereto.  As used herein, the term “ Affiliate ” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question.  As used herein, the term “ control ” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.  “ Person ” means any individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.

 

6.   Employee’s Representations .

 

(a)   Employee represents and warrants to the Company that (i) Employee does not have any agreement with any prior employer or other third party that will prohibit Employee from working for the Company or fulfilling the Employee’s duties and obligations to the Company, and (ii) Employee has complied with all non-competition, non-solicitation, and confidentiality duties imposed on Employee with respect to Employee’s former employers and other third parties.

 

(b)   Employee is a sophisticated executive, has had sufficient time to carefully consider the terms of this Agreement including any future hardship that entering into this Agreement may cause, has had sufficient opportunity to consult an attorney, and enters into this Agreement knowingly and voluntarily with full understanding of this Agreement’s terms.

 

Exhibit A-4



 

7.   Choice of Law; Dispute Resolution .  This Agreement shall be governed by and construed in accordance with the substantive laws of the Commonwealth of Massachusetts.  Any dispute arising out of, or relating to this Agreement shall be subject to the exclusive jurisdiction of the state or federal courts, as applicable, with jurisdiction over Waltham, Massachusetts.  Employee expressly acknowledges the reasonableness and appropriateness of such forum(s) and venues and agrees not to contest such forum or venue selection.

 

8.   At-Will Employment .  Nothing in this Agreement will alter the at-will nature of Employee’s employment, as either Employee or the Company may terminate Employee’s agreement at any time.

 

I HAVE READ THIS AGREEMENT CAREFULLY, AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS THAT IT IMPOSES UPON ME WITHOUT RESERVATION.  I SIGN THIS AGREEMENT VOLUNTARILY AND FREELY.

 

COMPANY:

 

EMPLOYEE:

 

 

 

 

 

 

By:

/s/ Edward J. Faneuil

 

By:

/s/ Mark Romaine

 

 

 

 

 

Name:

Edward J. Faneuil

 

Date:

June 27, 2013

 

 

 

 

 

Title:

Executive Vice President

 

 

 

 

 

 

 

 

Date:

June 27, 2013

 

 

 

 

Exhibit A-5



 

EXHIBIT B

 

CLAIMS PROCEDURES

 

(a)           Any individual who believes that he or she has been denied a benefit to which he or she is entitled under this Agreement (hereinafter referred to as a “ Claimant ”) may file a written request for such benefit with the Board.  In order to file a claim for benefits under this Agreement, the Claimant must submit to the Board a written claim for benefits containing a description of (i) an alleged failure to receive a benefit payable under this Agreement or (ii) an alleged discrepancy between the amount of a benefit owed and the amount of a benefit the Claimant received under this Agreement.  In connection with the submission of a claim, the Claimant may examine this Agreement and any other relevant documents relating to his or her claim, and the Claimant may submit written comments relating to such claim to the Board.  If the Claimant needs additional information regarding his or her claim for benefits, the Claimant can submit a written request to the Board for such information.  Failure to furnish a written claim description or to otherwise comply with this claim submission procedure shall invalidate the Claimant’s claim unless the Board determines that it was not reasonably possible to comply with such procedure.

 

(b)           A Claimant shall be permitted to examine any relevant document relating to his or her claim and submit written comments or other information to the Board to supplement his or her claim.  Within 90 days from the date the Claimant filed the claim (or such longer period as may be necessary due to unusual circumstances or to enable the Claimant to submit written comments, but in any event no longer than the time period described in clause (c) hereof), the Board shall make a decision as to whether the claim is to be approved, modified, or denied.  If the Board approves the claim, then the Company shall process the claim as soon as administratively practicable.

 

(c)           In the event of an “ Adverse Benefit Determination ” (which includes a denial or modification of a Claimant’s claim, or an invalidation for failing to follow this claim submission procedure), the Claimant shall be notified in writing not later than 90 days following the date the Claimant filed his or her claim (or within 180 days under special circumstances, in which case the Claimant will be informed of the extension and the circumstances requiring the extension in writing prior to its commencement) of the following:

 

(i)            The specific reason or reasons for the Adverse Benefit Determination;

 

(ii)           The provisions of this Agreement upon which the Adverse Benefit Determination is based;

 

(iii)          Any additional material or information necessary to perfect the claim and the reasons why such material or information is necessary;

 

(iv)          The claims review procedure set forth in this Agreement; and

 

Exhibit B-1



 

(v)           A description of the Claimant’s right to bring a civil action under the Employee Retirement Income Security Act of 1974, as amended (“ ERISA ”), with respect to the Adverse Benefit Determination.

 

(d)           Within 60 days following receipt of an Adverse Benefit Determination, the Claimant may submit a written request to the Board for review of such determination.  During this review process, the Claimant shall have the opportunity to submit written comments and other information relating to his or her claim and the Claimant shall have reasonable access to, and copies of, all documents and other information related to his or her claim free of charge.  Any items the Claimant submits to the Board shall be considered without regard to whether such items were considered in the initial benefit determination.

 

(e)           Within 60 days following the Claimant’s request for review (or within 120 days under special circumstances, in which case the Claimant will receive written notice of the extension and the circumstances requiring the extension prior to its commencement), the Board must, after providing the Claimant with a full and fair review, render its final decision in writing (or electronically) to the Claimant.  However, the review process may be delayed if the Claimant fails to provide information that is requested by the Board.  If the Board approves the claim on review, then the Company shall process the claim as soon as administratively practicable.  In the event of an Adverse Benefit Determination on review, the Board’s final decision shall include:

 

(i)            The specific reason or reasons for the Adverse Benefit Determination;

 

(ii)           The provisions of this Agreement upon which the Adverse Benefit Determination is based;

 

(iii)          A statement that the Claimant is entitled to reasonable access to, and copies of, all documents and other information related to the claim free of charge; and

 

(iv)          A description of the Claimant’s right to bring a civil action under ERISA with respect to the Adverse Benefit Determination.

 

(f)            A Claimant may, by submitting a written statement to the Company, authorize an individual or entity to pursue his or her claim for benefits under this Agreement and/or the Claimant’s request for a review of an Adverse Benefit Determination made with respect to his or her claim.

 

Exhibit B-2


Exhibit 10.5

 

EXECUTIVE CHANGE OF CONTROL AGREEMENT

 

THIS CHANGE OF CONTROL AGREEMENT (the “ Agreement ”) is entered into effective as of June 27, 2013 (the “ Effective Date ”), by and between Global GP LLC, a Delaware limited liability company, (the “ Company ”) and Charles A. Rudinsky (“ Executive ”).

 

W I T N E S S E T H :

 

WHEREAS , the Company is the general partner of Global Partners LP, a Delaware limited partnership (the “ Partnership ”);

 

WHEREAS , the Executive is currently employed by the Company and is an integral part of the management of the Company;

 

WHEREAS , the Company desires to attract and retain certain key management personnel such as the Executive and, accordingly, desires to enter into a change of control severance agreement with the Executive in order to encourage his continued service to the Company; and

 

WHEREAS , the Executive is prepared to commit such services in return for specific arrangements with respect to change of control severance compensation.

 

NOW, THEREFORE , in consideration of the foregoing and for other good and valuable consideration, the Company and Executive agree as follows:

 

1.                                       Definitions .  For purposes of this Agreement, the terms listed below will have the meanings specified herein:

 

(a)                                  Accrued Payments ” means (i) any unpaid Base Salary through the Date of Termination (but calculated at the rate then in effect), (ii) any earned but unpaid Bonus, (iii) all accrued vacation, expenses reimbursements and other benefits (other than severance), and (iv) any and all other amounts that may be due to him as of the Date of Termination.

 

(b)                                  Base Salary ” means the amount the Executive is entitled to receive as wages or salary on an annualized basis, calculated as of the Date of Termination or, if greater, before any reduction not consented to by the Executive.

 

(c)                                   Board ” means the board of directors of the Company.

 

(d)                                  Bonus ” means any discretionary cash bonus to which the Executive is entitled.

 

(e)                                   Cause ” means the Executive (i) has engaged in gross negligence or willful misconduct in the performance of his duties, (ii) has committed an act of fraud, embezzlement or willful breach of fiduciary duty to the Company or any of its subsidiaries (including the unauthorized disclosure of any material secret, confidential and/or proprietary information, knowledge or data of the Company or any of its subsidiaries); (iii) has been

 



 

convicted of (or pleaded no contest to) a crime involving fraud, dishonesty or moral turpitude or any felony or (iv) has breached any material provision of the Non-Competition Agreement (referenced in Section 5 and attached as Exhibit A ), which breach is not cured within thirty (30) days of Executive’s receipt of written notice of such breach; provided, however, there shall be no opportunity to cure a breach of the Non-Competition Agreement.

 

(f)                                    Change of Control ” shall occur on the date that any one person, entity or group (other than Alfred Slifka, Richard Slifka or Eric Slifka, or their respective family members or entities they control, individually or in the aggregate, directly or indirectly (collectively referred to hereinafter as the “ Slifkas ”)) acquires ownership of the membership interests of the Company that, together with the membership interests of the Company already held by such person, entity or group, constitutes more than 50% of the total voting power of the membership interests of the Company; provided, however, if any one person, entity or group is considered to own more than 50% of the total voting power of the membership interests of the Company, the acquisition of additional membership interests by the same person, entity or group shall not be deemed to be a Change of Control.  The definition of “Change of Control” shall be interpreted, to the extent applicable, to comply with Section 409A(a)(2)(A)(v) of the Internal Revenue Code of 1986 (the “Code”) and any successor statute, and/or guidance thereunder, and the provisions of Treasury Regulation Section 1.409A and any successor regulation and guidance thereto; provided, however, an interpretation in compliance with Section 409A of the Code shall not expand the definition of Change of Control in any way or cause an acquisition by the Slifkas to result in a Change of Control.

 

(g)                                   COBRA ” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

 

(h)                                  Code ” means the Internal Revenue Code of 1986, as amended, and applicable administrative guidance issued thereunder.

 

(i)                                      Date of Termination ” means the date of receipt of the Notice of Termination or any later date specified therein, as the case may be.  For all purposes of this Agreement, the Executive’s Date of Termination shall not occur prior to the date the Executive incurs a “separation from service” within the meaning of Section 409A(a)(2)(A)(i) of the Code.

 

(j)                                     ERISA ” means the Employee Retirement Income Security Act, as amended, and applicable administrative guidance issued thereunder.

 

(k)                                  Good Reason ” means the occurrence of one of the following arising on or after the date such Executive commences participation in this Agreement, as determined in a manner consistent with Treasury Regulation Section 1.409A-1(n)(2)(ii):  (i) any material diminution, without the Executive’s written consent, in the Executive’s working conditions consisting of (A) a material reduction in the Executive’s duties and responsibilities, (B) a material change in the Executive’s title, or (C) a relocation of the Executive’s place of work further than forty (40) miles from Waltham, Massachusetts.  To be able to terminate his employment with the Company for Good Reason, the Executive must provide notice to the Company of the existence of any of the conditions set forth in the immediately preceding sentence within 90 days of the initial existence of such condition(s), and the Company must fail

 

2



 

to remedy such condition(s) within 30 days of such notice.  In no event shall the Date of Termination in connection with Good Reason occur any later than one year following the initial existence of the condition(s) constituting Good Reason hereunder.

 

(l)                                      Notice of Termination ” means a written notice communicated by the Company or the Executive, as applicable, that (i) indicates the specific reason for termination of the Executive’s employment, (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for the termination, and (iii) specifies the Date of Termination.

 

(m)                              Protection Period ” means (i) the three month period ending on the date a Change of Control occurs, and (ii) the twelve month period beginning on the date a Change of Control occurs.

 

(n)                                  Release Expiration Date ” means that date that is 21 days following the date upon which the Company delivers to the Executive the release of claims contemplated in the definition of “Severance Conditions” below or, in the event that such termination is “in connection with an exit incentive or other employment termination program” (as such phrase is defined in the Age Discrimination in Employment Act of 1967, as amended), the date that is 45 days following such delivery date.

 

(o)                                  Severance Conditions ” means the Executive’s execution and delivery to the Company by the Release Expiration date (and non-revocation in any time provided to do so) a release in a form acceptable to the Company, which such release shall be provided by the Company within five (5) days after the Date of Termination and shall release all claims against the Company, its affiliates and their respective predecessors, successors, affiliates, directors, officers, equity holders, partners, managers, members, employees, agents, representatives, insurers and benefit plans (and the fiduciaries and trustees of such plans), with the exception of any claims: (A) to severance as described in this Agreement, (B) vested benefits under an ERISA plan; or (C) that cannot be released by law.

 

(p)                                  Termination Event ” means a termination of the Executive’s employment by the Company for any reason other than for Cause or by the Executive for Good Reason, in either case during the Protection Period .

 

2.                                       Term of Agreement .  The term of this Agreement (the “ Term ”) shall be for a period that commences on the Effective Date and terminates upon the earlier to occur of the sixth anniversary of the Effective Date or a Change of Control; provided, that, if a Change of Control has not occurred by the sixth anniversary of the Effective Date, the Term will be automatically extended for an additional one (1) year period as of the sixth anniversary of the Effective Date and on each anniversary date of the Effective Date occurring thereafter, unless the Board cancels further extension of this Agreement by giving notice to the Executive at least sixty (60) days prior to the applicable extension date.  Upon a Change of Control during the Term, the Term will be extended through the end of the Protection Period, immediately following which time this Agreement will terminate, except to the extent necessary to enable the Executive to enforce his rights under Section 3 of this Agreement.

 

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3.                                       Benefits.

 

(a)                                  Change of Control Payment .  Provided that the Executive has been continuously employed with the Company from the first date of Executive’s participation in this Agreement until the date of the Change of Control, the Executive will receive acceleration of vesting on any and all outstanding Company options, restricted units, phantom units, unit appreciation rights and other similar rights under the Long-Term Incentive Plan held by Executive effective the date of the Change of Control.

 

(b)                                  Termination By the Company Without Cause or By the Executive For Good Reason .  In the event the Executive experiences a Termination Event, then the Company shall, contingent upon the Executive satisfying the Severance Conditions (and, in the case of a termination occurring during the three (3) month period ending on the Change of Control, contingent upon a Sufficiency Determination pursuant to Section 3(c)  below):

 

(i)                                      pay the Executive, within the earlier to occur of the date on which applicable law or Company policy or practice would necessitate payment and 60 days following the Date of Termination (or within 60 days following the occurrence of the Change of Control, in the case of a termination occurring during the three (3) month period ending on the Change of Control), the Accrued Payments;

 

(ii)                                   provide for acceleration of the target incentive amount under the then applicable short term incentive plan for the fiscal year in which the termination occurs, within the earlier to occur of the date on which applicable law or Company policy or practice would necessitate payment and 60 days following the Date of Termination (or within 60 days following the occurrence of the Change of Control, in the case of termination occurring during the three (3) month period ending on the Change of Control);

 

(iii)                                provide for 100% vesting on any and all outstanding Company options, restricted units, phantom units, unit appreciation rights and other similar rights under the Long-Term Incentive Plan held by the Executive as in effect on the Date of Termination, with such accelerated vesting to occur on the later of (A) the Date of Termination or (B) the date of the Change of Control.

 

(c)                                   (i)                                      In the event the Executive experiences a Termination Event in connection with a termination occurring during the three (3) month period ending on the Change of Control for which the Executive believes he is entitled to benefits in accordance with Section 3(b), the Executive shall deliver to the Company a written notice setting forth a description of facts and circumstances constituting evidence that the termination of the Executive’s employment was made in anticipation of the occurrence of a Change of Control and with the intention of avoiding payments under this Agreement, no later than 30 days following the occurrence of the Change of Control.

 

(ii)                                   Within 15 days following receipt of the notice described in Section 3(c)(i) , the Chief Executive Officer of the Company, will make a good faith determination, based on the information contained in such notice and any other

 

4



 

information known to the Chief Executive Officer of the Company, whether the Executive’s termination was made in anticipation of the occurrence of a Change of Control and with the intention of avoiding payments under this Agreement.  If the Chief Executive Officer affirmatively determines that the termination was under such circumstances (a “ Sufficiency Determination ”), the Executive will be eligible for and the Company shall provide benefits to the Executive in accordance with Section 3(b) .

 

(iii)                                If the Chief Executive Officer of the Company instead determines that there is insufficient evidence to support a Sufficiency Determination, the Company will promptly inform the Executive of such determination.

 

4.                                       Excise Taxes .  If the Compensation Committee of the Board determines, in its sole discretion, that Section 280G of the Code applies to any compensation payable to the Executive, then the provisions of this Section 4 shall apply.  If any payments or benefits to which the Executive is entitled from the Company, any affiliate, any successor to the Company or an affiliate, or any trusts established by any of the foregoing by reason of, or in connection with, any transaction that occurs after the Effective Date (collectively, the “ Payments ,” which shall include, without limitation, the vesting of any equity awards or other non-cash benefit or property) are, alone or in the aggregate, more likely than not, if paid or delivered to the Executive, to be subject to the tax imposed by Section 4999 of the Code or any successor provisions to that section, then the Payments (beginning with any Payment to be paid in cash hereunder), shall be either (a) reduced (but not below zero) so that the present value of such total Payments received by the Executive will be one dollar ($1.00) less than three times the Executive’s “base amount” (as defined in Section 280G(b)(3) of the Code) and so that no portion of such Payments received by the Executive shall be subject to the excise tax imposed by Section 4999 of the Code, or (b) paid in full, whichever of (a) or (b) produces the better net after tax position to the Executive (taking into account any applicable excise tax under Section 4999 of the Code and any other applicable taxes).  The determination as to whether any Payments are more likely than not to be subject to taxes under Section 4999 of the Code and as to whether reduction or payment in full of the amount of the Payments provided hereunder results in the better net after tax position to the Executive shall be made by the Board and the Executive in good faith.

 

5.                                       Non-Competition Agreement .  As a condition of entering into this Agreement, Executive will execute the Confidentiality, Non-Solicitation, and Non-Competition Agreement that is attached hereto as Exhibit A (the “Non-Competition Agreement”).  Executive acknowledges and agrees that the restrictions set forth in the Non-Competition Agreement are reasonable in all respects and no greater than necessary to protect the Company’s legitimate business interests, including the protection of its confidential information, trade secrets and goodwill.  Executive also acknowledges that in entering into this Agreement, Executive is receiving new consideration above and beyond any consideration to which Executive is entitled but for Executive’s entry into the Non-Competition Agreement, and if Executive fails to execute the Non-Competition Agreement, Executive shall forfeit all rights to payments and benefits granted under this Agreement.

 

5



 

6.                                       General Provisions .

 

(a)                                  Taxes .  The Company is authorized to withhold from any payments made hereunder amounts of withholding and other taxes due or potentially payable in connection therewith, and to take such other action as the Company may deem advisable to enable the Company and the Executive to satisfy obligations for the payment of withholding taxes and other tax obligations relating to any payments made under this Agreement.

 

(b)                                  Offset .  The Company may set off against, and the Executive authorizes the Company to deduct from, any payments due to the Executive, or to his estate, heirs, legal representatives, or successors, any amounts which may be due and owing to the Company or an affiliate by the Executive, whether arising under this Agreement or otherwise; provided that no such offset may be made with respect to amounts payable that are subject to the requirements of Section 409A of the Code unless the offset would not result in a violation of the requirements of Section 409A of the Code.

 

(c)                                   Successors .  This Agreement and all rights hereunder are personal to the Executive and shall not be assignable by the Executive; provided, however, that any amounts that shall become payable under this Agreement prior to the Executive’s death shall inure to the benefit of the Executive’s heirs and other legal representatives, as the case may be.  This Agreement shall bind, and inure to the benefit of, the Company and any successor to the Company pursuant to a Change of Control.  The Company shall require any successor pursuant to a Change of Control to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no succession had taken place.  Upon such assumption by the successor, the Company automatically shall be released from all liability hereunder.  In the event a successor does not assume this Agreement, the benefits payable pursuant to Section 3 will be paid immediately prior to the Change of Control.

 

(d)                                  Unfunded Obligation .  All benefits due to the Executive under this Agreement are unfunded and unsecured and are payable out of the general funds of the Company.

 

(e)                                   Limitation on Rights Conferred .  Neither the Agreement nor any action taken hereunder will be construed as (i) giving the Executive the right to continue in the employ or service of the Company or an affiliate; (ii) interfering in any way with the right of the Company or any affiliate to terminate the Executive’s employment or service at any time; or (iii) giving the Executive any claim to be treated uniformly with other employees.

 

(f)                                    Entire Agreement .  Except as otherwise specifically provided herein, this Agreement constitutes the entire agreement between the parties respecting the subject matter hereof and supersedes any prior agreements respecting severance benefits upon a Change of Control.  No amendment to this Agreement shall be deemed valid unless in writing and signed by the parties.  A waiver of any term, covenant, agreement or condition contained in this Agreement shall not be deemed a waiver of any other term, covenant, agreement or condition, and any waiver of any default in any such term, covenant, agreement or condition shall not be deemed a waiver of any later default thereof or of any other term, covenant, agreement or

 

6



 

condition.  Any disagreements over the payment of amounts under, or otherwise with respect to, this Agreement shall be resolved in accordance with the claims procedures attached hereto as Exhibit B .

 

(g)                                   Severability .  If any provision of the Agreement is held to be illegal or invalid for any reason, the illegality or invalidity will not affect the remaining provisions of the Agreement, but such provision will be fully severable and the Agreement will be construed and enforced as if the illegal or invalid provision had never been included herein.

 

(h)                                  Notices .  Any notice required or permitted to be given by this Agreement shall be effective only if in writing, delivered personally or by courier or by confirmed facsimile transmission or sent by express, registered or certified mail, postage prepaid, (i) to the Executive at the last address he has filed with the Company, and (ii) to the Company at its principal executive offices, or at such other places that either party may designate by notice to the other.

 

(i)                                      Application of Section 409A .  The amounts payable pursuant to Section 3 of this Agreement are intended to comply with the short-term deferral exception to Section 409A of the Code.  To the extent that the Executive is a “specified employee” within the meaning of the Treasury Regulations issued pursuant to Section 409A of the Code (the “ Section 409A Regulations ”) as of the Executive’s Date of Termination, no amount that constitutes a deferral of compensation which is payable on account of the Executive’s separation from service shall be paid to the Executive before the date (the “ Delayed Payment Date ”) which is first day of the seventh month after the Executive’s Date of Termination or, if earlier, the date of the Executive’s death following such Date of Termination.  All such amounts that would, but for this Section 4(i) , become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date.  No interest will be paid by the Company with respect to any such delayed payments.  For purposes of Section 409A of the Code, each payment or amount due under this Agreement shall be considered a separate payment, and the Executive’s entitlement to a series of payments under this Agreement is to be treated as an entitlement to a series of separate payments.

 

(j)                                     Governing Law .  All questions arising with respect to the provisions of the Agreement and payments due hereunder will be determined by application of the laws of the Commonwealth of Massachusetts, other than conflicts of law provisions thereof.

 

(k)                                  Word Usage .  Words used in the masculine shall apply to the feminine, where applicable, and wherever the context of the Agreement dictates, the plural shall be read as the singular and the singular as the plural.

 

7



 

IN WITNESS WHEREOF , the parties hereto have executed this Agreement effective as of the Effective Date.

 

 

 

GLOBAL GP LLC

 

 

 

By:

/s/ Edward J. Faneuil

 

 

 

 

Name: Edward J. Faneuil

 

 

 

Title: Executive Vice President

 

 

 

Date: June 27, 2013

 

 

 

 

 

EXECUTIVE

 

 

 

/s/ Charles A. Rudinsky

 

 

 

Charles A. Rudinsky

 

8



 

EXHIBIT A

 

NON-COMPETITION AGREEMENT

 

This Confidentiality, Non-Solicitation and Non-Competition Agreement (this “ Agreement ”) is executed and agreed to as of                     , by and between                             (“ Employee ”), an individual, and Global GP LLC, together with any successor or assign (the “ Company ”).  Employee’s obligations under this Agreement survive the termination of Employee’s employment regardless of the reason for such termination.

 

WHEREAS, in consideration for executing and agreeing to this Agreement, the Company has issued that certain Grant of Phantom Units in the Global Partners LP Long Term Incentive Plan, which such consideration the Company would not have provided but for Employee’s entry into this Agreement.

 

NOW, THEREFORE, in consideration of the mutual promises and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Employee, each intending to be legally bound, hereby agree as follows:

 

1.   Protection of Confidential Information; Unauthorized Disclosure

 

(a)   For purposes of this Agreement, “ Confidential Information ” means any and all confidential or proprietary information and materials, as well as all trade secrets, belonging to the Company or its Affiliates.  Confidential Information includes, regardless of whether such information or materials are expressly identified or marked as confidential or proprietary, and whether or not patentable: (1) technical information and materials of the Company or its Affiliates; (2) non-public business information and materials of the Company or its Affiliates; (3) any information or material that gives the Company or its Affiliates an advantage with respect to its competitors by virtue of not being known by those competitors; (4) potential expansion and development plans; projections, forecasts and budgets; growth strategies; marketing plans; pricing information; customer and supplier information; and (5) other valuable, confidential information and materials and/or trade secrets of the Company or its Affiliates.  Notwithstanding the foregoing, Confidential Information shall not include information that (i) is already properly in the public domain or enters the public domain with the express consent of the Company or its Affiliates, or (ii) is intentionally made available by the Company or its Affiliates to third parties without any expectation of confidentiality.

 

(b)   Employee acknowledges and agrees that Confidential Information has been and will be developed or acquired by the Company or its Affiliates through the expenditure of substantial time, effort and money and provides the Company and its Affiliates with an

 

Exhibit A-1



 

advantage over competitors who do not know or use such Confidential Information.  Employee further acknowledges and agrees that the nature of the Confidential Information which the Company has provided Employee and shall provide Employee during Employee’s continued employment would make it difficult, if not impossible, for Employee to perform in a similar capacity for a business competitive with the Company during the Restricted Period without disclosing or utilizing confidential information.

 

(c)   During and following Employee’s employment by the Company, Employee shall hold in confidence and not directly or indirectly disclose or use or copy any Confidential Information except to the extent necessary to carry out Employee’s duties on behalf of the Company.  The foregoing shall not prevent Employee from disclosing Confidential Information if so required by legal process; however, Employee agrees to give the Company notice of any and all attempts to compel disclosure of any Confidential Information within one (1) business day after Employee is informed that such disclosure is being, or will be, compelled.  Such written notice shall include a description of the information to be disclosed, the court, government agency, or other forum through which the disclosure is sought, and the date by which the Confidential Information is to be disclosed, and shall contain a copy of the subpoena, order or other process used to compel disclosure.

 

(d)   Upon the termination of Employee’s employment by the Company, Employee promises to promptly return to the Company all Confidential Information, and all documents and materials (including electronically stored information) in Employee’s possession, custody or control that constitutes or reflects Confidential Information.

 

2.   Non-Competition and Other Restrictive Covenants .

 

(a)   During the remaining term that Employee is employed by the Company and any of its Affiliates and continuing through the date that is two (2) years after the date that Employee is no longer employed by the Company or any of its Affiliates (the “ Restricted Period ”), Employee shall be prohibited from directly or indirectly working (as an employee, consultant, advisor, director or otherwise) for, engaging in or acquiring or investing in any business engaged in (or actively considering engagement in) the following businesses within the Restricted Area: (a) wholesale and/or retail marketing, sale, distribution and transportation of refined petroleum products, crude oil, renewable fuels (including ethanol and biofuels), natural gas liquids (including ethane, butane, propane and condensates), natural gas, compressed natural gas and liquefied natural gas; (b) the storage of refined petroleum products and/or any of the other products identified in clause (a) of this paragraph in connection with any of the activities described in said clause (a); (c) the sale of convenience store items and sundries and related food service related to the retail sale of gasoline; and (d) bunkering (such business activities referenced in parts (a) through (d) are referred to as the “ Restricted Business ”).

 

(b)   During the Restricted Period, Employee also shall not directly or indirectly solicit any employees, contractors, vendors, suppliers or customers of the Company or its Affiliates to cease to be employed by or otherwise do business with the Company or its Affiliates, or to reduce the same, or to be employed or otherwise do business with any person or entity engaged in the Restricted Business.

 

Exhibit A-2



 

(c)   As used herein, the “ Restricted Area” consists of: (i) the United States and Canada; and (ii) any other geographic area where the Company conducts business during the period of Employee’s employment with the Company or its Affiliates and for which Employee has had material responsibilities during the course of Employee’s employment with the Company or its Affiliate, or about which such business Employee has obtained material Confidential Information during such employment.

 

(d)   If any court construes any of the provisions of this Section 2, or any part thereof, to be unreasonable because of the duration of such provision or the geographic scope thereof, such court shall have the power to reduce the duration or restrict the geographic scope of such provision and to enforce such provision as so reduced or restricted.

 

(e)   Employee expressly acknowledges and agrees that the restrictions set forth in this Agreement are reasonable in all respects and no greater than necessary to protect the Company’s legitimate business interests, including the protection of its Confidential Information and goodwill.  Employee further represents that enforcement of this Agreement is in the public interest and that Employee would not suffer undue hardship as the result of such enforcement, and that the Company’s need for the protections afforded by this Agreement is greater than any hardship Employee might experience by complying with its terms.

 

3.   Right to Injunction .  Employee acknowledges that Employee’s violation or threatened or attempted violation of the covenants contained in this Agreement will cause irreparable harm to the Company and that money damages would not be sufficient remedy for any breach of these sections.  Employee agrees that the Company shall be entitled as a matter of right to specific performance of the covenants in this Agreement, including entry of an ex parte temporary restraining order in state or federal court, preliminary and permanent injunctive relief against activities in violation of this Agreement, or both, or other appropriate judicial remedy, writ or order, in any court of competent jurisdiction, restraining any violation or further violation of such agreements by Employee or others acting on Employee’s behalf, without any showing of irreparable harm and without any showing that the Company does not have an adequate remedy at law.  Such remedies shall be in addition to all other remedies available to the Company, both at law and equity.

 

4.   Long Term Incentive Plan Agreement and Change in Control Agreements Employee acknowledges that Employee’s entry into this Agreement is a condition of the Company’s Grant of Phantom Units under the Global Partners LP Long-Term Incentive Plan and the Company’s entry into that certain Executive Change of Control Agreement.  Employee acknowledges and agrees that, in entering into this Agreement, Employee is receiving new consideration to which Employee was not otherwise entitled but for Employee’s entry into this Agreement.

 

Exhibit A-3



 

5.   Miscellaneous .

 

(a)   Modification .  Subject to the provisions of Section 2(d), both parties agree that neither has the authority to modify or amend this Agreement unless the modification or amendment is in writing and signed by both of them.

 

(b)   Severability .  If any term, provision, covenant or condition of this Agreement (or part thereof) is held by a court of competent jurisdiction to be illegal, invalid, unenforceable or void, the validity and enforceability of the remainder of this Agreement shall not in any way be affected, impaired or invalidated.

 

(c)   Survival .  Employee’s obligations under this Agreement shall survive the termination for whatever reason of Employee’s employment.  .

 

(d)   Assignment .  Employee shall not assign, pledge or encumber any interest in this Agreement or any part thereof without the express written consent of the Company, this Agreement being personal to Employee.  The Company may assign this Agreement to, and shall bind, a successor to its business without the requirement of a consent by Employee.  If the Company shall merge or consolidate with or into, or transfer substantially all of its assets to, another corporation or other form of business organization, then this Agreement shall bind the successor of the Company resulting from such merger, consolidation or transfer.

 

(e)   Third Party Beneficiaries .  Each Affiliate of the Company shall be a third party beneficiary of Employee’s obligations under the provisions of this Agreement and shall have the right to enforce this Agreement as if a party hereto.  As used herein, the term “ Affiliate ” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question.  As used herein, the term “ control ” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.  “ Person ” means any individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.

 

6.   Employee’s Representations .

 

(a)   Employee represents and warrants to the Company that (i) Employee does not have any agreement with any prior employer or other third party that will prohibit Employee from working for the Company or fulfilling the Employee’s duties and obligations to the Company, and (ii) Employee has complied with all non-competition, non-solicitation, and confidentiality duties imposed on Employee with respect to Employee’s former employers and other third parties.

 

(b)   Employee is a sophisticated executive, has had sufficient time to carefully consider the terms of this Agreement including any future hardship that entering into this Agreement may cause, has had sufficient opportunity to consult an attorney, and enters into this Agreement knowingly and voluntarily with full understanding of this Agreement’s terms.

 

Exhibit A-4



 

7.   Choice of Law; Dispute Resolution .  This Agreement shall be governed by and construed in accordance with the substantive laws of the Commonwealth of Massachusetts.  Any dispute arising out of, or relating to this Agreement shall be subject to the exclusive jurisdiction of the state or federal courts, as applicable, with jurisdiction over Waltham, Massachusetts.  Employee expressly acknowledges the reasonableness and appropriateness of such forum(s) and venues and agrees not to contest such forum or venue selection.

 

8.   At-Will Employment .  Nothing in this Agreement will alter the at-will nature of Employee’s employment, as either Employee or the Company may terminate Employee’s agreement at any time.

 

I HAVE READ THIS AGREEMENT CAREFULLY, AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS THAT IT IMPOSES UPON ME WITHOUT RESERVATION.  I SIGN THIS AGREEMENT VOLUNTARILY AND FREELY.

 

COMPANY:

 

EMPLOYEE:

 

 

 

 

 

 

By:

 

 

By:

 

 

 

 

 

 

Name:

 

 

Date:

 

 

 

 

 

 

Title:

 

 

 

 

 

 

 

 

 

Date:

 

 

 

 

 

Exhibit A-5



 

EXHIBIT B

 

CLAIMS PROCEDURES

 

(a)           Any individual who believes that he or she has been denied a benefit to which he or she is entitled under this Agreement (hereinafter referred to as a “ Claimant ”) may file a written request for such benefit with the Board.  In order to file a claim for benefits under this Agreement, the Claimant must submit to the Board a written claim for benefits containing a description of (i) an alleged failure to receive a benefit payable under this Agreement or (ii) an alleged discrepancy between the amount of a benefit owed and the amount of a benefit the Claimant received under this Agreement.  In connection with the submission of a claim, the Claimant may examine this Agreement and any other relevant documents relating to his or her claim, and the Claimant may submit written comments relating to such claim to the Board.  If the Claimant needs additional information regarding his or her claim for benefits, the Claimant can submit a written request to the Board for such information.  Failure to furnish a written claim description or to otherwise comply with this claim submission procedure shall invalidate the Claimant’s claim unless the Board determines that it was not reasonably possible to comply with such procedure.

 

(b)           A Claimant shall be permitted to examine any relevant document relating to his or her claim and submit written comments or other information to the Board to supplement his or her claim.  Within 90 days from the date the Claimant filed the claim (or such longer period as may be necessary due to unusual circumstances or to enable the Claimant to submit written comments, but in any event no longer than the time period described in clause (c) hereof), the Board shall make a decision as to whether the claim is to be approved, modified, or denied.  If the Board approves the claim, then the Company shall process the claim as soon as administratively practicable.

 

(c)           In the event of an “ Adverse Benefit Determination ” (which includes a denial or modification of a Claimant’s claim, or an invalidation for failing to follow this claim submission procedure), the Claimant shall be notified in writing not later than 90 days following the date the Claimant filed his or her claim (or within 180 days under special circumstances, in which case the Claimant will be informed of the extension and the circumstances requiring the extension in writing prior to its commencement) of the following:

 

(i)            The specific reason or reasons for the Adverse Benefit Determination;

 

(ii)           The provisions of this Agreement upon which the Adverse Benefit Determination is based;

 

(iii)          Any additional material or information necessary to perfect the claim and the reasons why such material or information is necessary;

 

(iv)          The claims review procedure set forth in this Agreement; and

 

Exhibit B-1



 

(v)           A description of the Claimant’s right to bring a civil action under the Employee Retirement Income Security Act of 1974, as amended (“ ERISA ”), with respect to the Adverse Benefit Determination.

 

(d)           Within 60 days following receipt of an Adverse Benefit Determination, the Claimant may submit a written request to the Board for review of such determination.  During this review process, the Claimant shall have the opportunity to submit written comments and other information relating to his or her claim and the Claimant shall have reasonable access to, and copies of, all documents and other information related to his or her claim free of charge.  Any items the Claimant submits to the Board shall be considered without regard to whether such items were considered in the initial benefit determination.

 

(e)           Within 60 days following the Claimant’s request for review (or within 120 days under special circumstances, in which case the Claimant will receive written notice of the extension and the circumstances requiring the extension prior to its commencement), the Board must, after providing the Claimant with a full and fair review, render its final decision in writing (or electronically) to the Claimant.  However, the review process may be delayed if the Claimant fails to provide information that is requested by the Board.  If the Board approves the claim on review, then the Company shall process the claim as soon as administratively practicable.  In the event of an Adverse Benefit Determination on review, the Board’s final decision shall include:

 

(i)            The specific reason or reasons for the Adverse Benefit Determination;

 

(ii)           The provisions of this Agreement upon which the Adverse Benefit Determination is based;

 

(iii)          A statement that the Claimant is entitled to reasonable access to, and copies of, all documents and other information related to the claim free of charge; and

 

(iv)          A description of the Claimant’s right to bring a civil action under ERISA with respect to the Adverse Benefit Determination.

 

(f)            A Claimant may, by submitting a written statement to the Company, authorize an individual or entity to pursue his or her claim for benefits under this Agreement and/or the Claimant’s request for a review of an Adverse Benefit Determination made with respect to his or her claim.

 

Exhibit B-2


Exhibit 10.6

 

CONFIDENTIALITY, NON-SOLICITATION AND NON-COMPETITION AGREEMENT

 

This Confidentiality, Non-Solicitation and Non-Competition Agreement (this “ Agreement ”) is executed and agreed to as of                           , by and between                              (“ Employee ”), an individual, and Global GP LLC, together with any successor or assign (the “ Company ”).  Employee’s obligations under this Agreement survive the termination of Employee’s employment regardless of the reason for such termination.  In consideration of the mutual promises and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Employee, each intending to be legally bound, hereby agree as follows:

 

1.                                       Protection of Confidential Information; Unauthorized Disclosure

 

(a)                                  For purposes of this Agreement, “ Confidential Information ” means any and all confidential or proprietary information and materials, as well as all trade secrets, belonging to the Company or its Affiliates.  Confidential Information includes, regardless of whether such information or materials are expressly identified or marked as confidential or proprietary, and whether or not patentable: (1) technical information and materials of the Company or its Affiliates; (2) non-public business information and materials of the Company or its Affiliates; (3) any information or material that gives the Company or its Affiliates an advantage with respect to its competitors by virtue of not being known by those competitors; (4) potential expansion and development plans; projections, forecasts and budgets; growth strategies; marketing plans; pricing information; customer and supplier information; and (5) other valuable, confidential information and materials and/or trade secrets of the Company or its Affiliates. Notwithstanding the foregoing, Confidential Information shall not include information that (i) is already properly in the public domain or enters the public domain with the express consent of the Company or its Affiliates, or (ii) is intentionally made available by the Company or its Affiliates to third parties without any expectation of confidentiality.

 

(b)                                  Employee acknowledges and agrees that Confidential Information has been and will be developed or acquired by the Company or its Affiliates through the expenditure of substantial time, effort and money and provides the Company and its Affiliates with an advantage over competitors who do not know or use such Confidential Information.  Employee further acknowledges and agrees that the nature of the Confidential Information which the Company has provided Employee and shall provide Employee during Employee’s continued employment would make it difficult, if not impossible, for Employee to perform in a similar capacity for a business competitive with the Company during the Restricted Period without disclosing or utilizing confidential information.

 

(c)                                   During and following Employee’s employment by the Company, Employee shall hold in confidence and not directly or indirectly disclose or use or copy any Confidential Information except to the extent necessary to carry out Employee’s duties on behalf of the Company.  The foregoing shall not prevent Employee from disclosing Confidential Information if so required by legal process; however, Employee agrees to give the Company notice of any and all attempts to compel disclosure of any Confidential Information within one (1) business day after Employee is informed that such disclosure is being, or will be, compelled.

 



 

Such written notice shall include a description of the information to be disclosed, the court, government agency, or other forum through which the disclosure is sought, and the date by which the Confidential Information is to be disclosed, and shall contain a copy of the subpoena, order or other process used to compel disclosure.

 

(d)                                  Upon the termination of Employee’s employment by the Company, Employee promises to promptly return to the Company all Confidential Information, and all documents and materials (including electronically stored information) in Employee’s possession, custody or control that constitutes or reflects Confidential Information.

 

2.                                       Non-Competition and Other Restrictive Covenants .

 

(a)                                  During the remaining term that Employee is employed by the Company and any of its Affiliates and continuing through the date that is          year(s) after the date that Employee is no longer employed by the Company or any of its Affiliates (the “ Restricted Period ”), Employee shall be prohibited from directly or indirectly working (as an employee, consultant, advisor, director or otherwise) for, engaging in or acquiring or investing in any business engaged in (or actively considering engagement in) the following businesses within the Restricted Area: (a) wholesale and/or retail marketing, sale, distribution and transportation of refined petroleum products, crude oil, renewable fuels (including ethanol and biofuels), natural gas liquids (including ethane, butane, propane and condensates), natural gas, compressed natural gas and liquefied natural gas; (b) the storage of refined petroleum products and/or any of the other products identified in clause (a) of this paragraph in connection with any of the activities described in said clause (a); (c) the sale of convenience store items and sundries and related food service related to the retail sale of gasoline; and (d) bunkering (such business activities referenced in parts (a) through (d) are referred to as the “ Restricted Business ”).

 

(b)                                  During the Restricted Period, Employee also shall not directly or indirectly solicit any employees, contractors, vendors, suppliers or customers of the Company or its Affiliates to cease to be employed by or otherwise do business with the Company or its Affiliates, or to reduce the same, or to be employed or otherwise do business with any person or entity engaged in the Restricted Business.

 

(c)                                   As used herein, the “ Restricted Area” consists of: (i) the United States and Canada; and (ii) any other geographic area where the Company conducts business during the period of Employee’s employment with the Company or its Affiliates and for which Employee has had material responsibilities during the course of Employee’s employment with the Company or its Affiliates, or about which such business Employee has obtained material Confidential Information during such employment.

 

(d)                                  If any court construes any of the provisions of this Section 2, or any part thereof, to be unreasonable because of the duration of such provision or the geographic scope thereof, such court shall have the power to reduce the duration or restrict the geographic scope of such provision and to enforce such provision as so reduced or restricted.

 

(e)                                   Employee expressly acknowledges and agrees that the restrictions set forth in this Agreement are reasonable in all respects and no greater than necessary to protect the

 

2



 

Company’s legitimate business interests, including the protection of its Confidential Information and goodwill.  Employee further represents that enforcement of this Agreement is in the public interest and that Employee would not suffer undue hardship as the result of such enforcement, and that the Company’s need for the protections afforded by this Agreement is greater than any hardship Employee might experience by complying with its terms.

 

3.                                       Right to Injunction .  Employee acknowledges that Employee’s violation or threatened or attempted violation of the covenants contained in this Agreement will cause irreparable harm to the Company and that money damages would not be sufficient remedy for any breach of these sections.  Employee agrees that the Company shall be entitled as a matter of right to specific performance of the covenants in this Agreement, including entry of an ex parte temporary restraining order in state or federal court, preliminary and permanent injunctive relief against activities in violation of this Agreement, or both, or other appropriate judicial remedy, writ or order, in any court of competent jurisdiction, restraining any violation or further violation of such agreements by Employee or others acting on Employee’s behalf, without any showing of irreparable harm and without any showing that the Company does not have an adequate remedy at law.  Such remedies shall be in addition to all other remedies available to the Company, both at law and equity.

 

4.                                       Long Term Incentive Plan Agreement and Change in Control Agreements Employee acknowledges that Employee’s entry into this Agreement is a condition of the Company’s Grant of Phantom Units under the Global Partners LP Long-Term Incentive Plan to which this Agreement is attached.  Employee acknowledges and agrees that, in entering into this Agreement, Employee is receiving new consideration to which Employee was not otherwise entitled but for Employee’s entry into this Agreement.

 

5.                                       Miscellaneous .

 

(a)                                  Modification .  Subject to the provisions of Section 2(d), both parties agree that neither has the authority to modify or amend this Agreement unless the modification or amendment is in writing and signed by both of them.

 

(b)                                  Severability .  If any term, provision, covenant or condition of this Agreement (or part thereof) is held by a court of competent jurisdiction to be illegal, invalid, unenforceable or void, the validity and enforceability of the remainder of this Agreement shall not in any way be affected, impaired or invalidated.

 

(c)                                   Survival .  Employee’s obligations under this Agreement shall survive the termination for whatever reason of Employee’s employment.  .

 

(d)                                  Assignment .  Employee shall not assign, pledge or encumber any interest in this Agreement or any part thereof without the express written consent of the Company, this Agreement being personal to Employee.  The Company may assign this Agreement to, and shall bind, a successor to its business without the requirement of a consent by Employee.  If the Company shall merge or consolidate with or into, or transfer substantially all of its assets to, another corporation or other form of business organization, then this Agreement shall bind the successor of the Company resulting from such merger, consolidation or transfer.

 

3



 

(e)                                   Third Party Beneficiaries .  Each Affiliate of the Company shall be a third party beneficiary of Employee’s obligations under the provisions of this Agreement and shall have the right to enforce this Agreement as if a party hereto.  As used herein the term “ Affiliate ” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question.  As used herein, the term “ control ” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.  “ Person ” means any individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.

 

6.                                       Employee’s Representations .

 

(a)                                  Employee represents and warrants to the Company that (i) Employee does not have any agreement with any prior employer or other third party that will prohibit Employee from working for the Company or fulfilling the Employee’s duties and obligations to the Company, and (ii) Employee has complied with all non-competition, non-solicitation, and confidentiality duties imposed on Employee with respect to Employee’s former employers and other third parties.

 

(b)                                  Employee is a sophisticated executive, has had sufficient time to carefully consider the terms of this Agreement including any future hardship that entering into this Agreement may cause, has had sufficient opportunity to consult an attorney, and enters into this Agreement knowingly and voluntarily with full understanding of this Agreement’s terms.

 

7.                                       Choice of Law; Dispute Resolution .  This Agreement shall be governed by and construed in accordance with the substantive laws of the Commonwealth of Massachusetts.  Any dispute arising out of, or relating to this Agreement shall be subject to the exclusive jurisdiction of the state or federal courts, as applicable, with jurisdiction over Waltham, Massachusetts.  Employee expressly acknowledges the reasonableness and appropriateness of such forum(s) and venues and agrees not to contest such forum or venue selection.

 

8.                                       At-Will Employment .  Nothing in this Agreement will alter the at-will nature of Employee’s employment, as either Employee or the Company may terminate Employee’s agreement at any time.

 

[ Signature page follows ]

 

4



 

I HAVE READ THIS AGREEMENT CAREFULLY, AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS THAT IT IMPOSES UPON ME WITHOUT RESERVATION.  I SIGN THIS AGREEMENT VOLUNTARILY AND FREELY.

 

COMPANY:

EMPLOYEE:

 

 

By:

 

 

By:

 

 

 

 

 

 

 

Name:

 

 

Date:

 

 

 

 

 

 

 

Title:

 

 

 

 

 

 

 

 

 

Date:

 

 

 

 

 

 

5


Exhibit 10.7

 

CONFIDENTIALITY, NON-SOLICITATION AND NON-COMPETITION AGREEMENT

 

This Confidentiality, Non-Solicitation and Non-Competition Agreement (this “ Agreement ”) is executed and agreed to as of June 27, 2013, by and between Daphne H. Foster (“ Employee ”), an individual, and Global GP LLC, together with any successor or assign (the “ Company ”).  Employee’s obligations under this Agreement survive the termination of Employee’s employment regardless of the reason for such termination.

 

WHEREAS, in consideration of Employee’s continued employment in which, the Company contemporaneously with Employee’s entry into this Agreement will promote Employee to the position of Chief Financial Officer, which position is characterized by substantially greater responsibility and compensation; and

 

WHEREAS, as further consideration for executing and agreeing to this Agreement, the Company has entered into that certain Executive Change of Control Agreement and issued that certain Grant of Phantom Units in the Global Partners LP Long Term Incentive Plan, which such consideration the Company would not have provided but for Employee’s entry into this Agreement.

 

NOW, THEREFORE, in consideration of the mutual promises and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Employee, each intending to be legally bound, hereby agree as follows:

 

1.                                       Protection of Confidential Information; Unauthorized Disclosure

 

(a)                                  For purposes of this Agreement, “ Confidential Information ” means any and all confidential or proprietary information and materials, as well as all trade secrets, belonging to the Company or its Affiliates.  Confidential Information includes, regardless of whether such information or materials are expressly identified or marked as confidential or proprietary, and whether or not patentable: (1) technical information and materials of the Company or its Affiliates; (2) non-public business information and materials of the Company or its Affiliates; (3) any information or material that gives the Company or its Affiliates an advantage with respect to its competitors by virtue of not being known by those competitors; (4) potential expansion and development plans; projections, forecasts and budgets; growth strategies; marketing plans; pricing information; customer and supplier information; and (5) other valuable, confidential information and materials and/or trade secrets of the Company or its Affiliates.  Notwithstanding the foregoing, Confidential Information shall not include information that (i) is already properly in the public domain or enters the public domain with the express consent of the Company or its Affiliates, or (ii) is intentionally made available by the Company or its Affiliates to third parties without any expectation of confidentiality.

 

(b)                                  Employee acknowledges and agrees that Confidential Information has been and will be developed or acquired by the Company or its Affiliates through the expenditure of substantial time, effort and money and provides the Company and its Affiliates with an advantage over competitors who do not know or use such Confidential Information.  Employee

 



 

further acknowledges and agrees that the nature of the Confidential Information which the Company has provided Employee and shall provide Employee during Employee’s continued employment would make it difficult, if not impossible, for Employee to perform in a similar capacity for a business competitive with the Company during the Restricted Period without disclosing or utilizing confidential information.

 

(c)                                   During and following Employee’s employment by the Company, Employee shall hold in confidence and not directly or indirectly disclose or use or copy any Confidential Information except to the extent necessary to carry out Employee’s duties on behalf of the Company.  The foregoing shall not prevent Employee from disclosing Confidential Information if so required by legal process; however, Employee agrees to give the Company notice of any and all attempts to compel disclosure of any Confidential Information within one (1) business day after Employee is informed that such disclosure is being, or will be, compelled.  Such written notice shall include a description of the information to be disclosed, the court, government agency, or other forum through which the disclosure is sought, and the date by which the Confidential Information is to be disclosed, and shall contain a copy of the subpoena, order or other process used to compel disclosure.

 

(d)                                  Upon the termination of Employee’s employment by the Company, Employee promises to promptly return to the Company all Confidential Information, and all documents and materials (including electronically stored information) in Employee’s possession, custody or control that constitutes or reflects Confidential Information.

 

2.                                       Non-Competition and Other Restrictive Covenants .

 

(a)                                  During the remaining term that Employee is employed by the Company and any of its Affiliates and continuing through the date that is two (2) years after the date that Employee is no longer employed by the Company or any of its Affiliates (the “ Restricted Period ”), Employee shall be prohibited from directly or indirectly working (as an employee, consultant, advisor, director or otherwise) for, engaging in or acquiring or investing in any business engaged in (or actively considering engagement in) the following businesses within the Restricted Area: (a) wholesale and/or retail marketing, sale, distribution and transportation of refined petroleum products, crude oil, renewable fuels (including ethanol and biofuels), natural gas liquids (including ethane, butane, propane and condensates), natural gas, compressed natural gas and liquefied natural gas; (b) the storage of refined petroleum products and/or any of the other products identified in clause (a) of this paragraph in connection with any of the activities described in said clause (a); (c) the sale of convenience store items and sundries and related food service related to the retail sale of gasoline; and (d) bunkering (such business activities referenced in parts (a) through (d) are referred to as the “ Restricted Business ”).

 

(b)                                  During the Restricted Period, Employee also shall not directly or indirectly solicit any employees, contractors, vendors, suppliers or customers of the Company or its Affiliates to cease to be employed by or otherwise do business with the Company or its Affiliates, or to reduce the same, or to be employed or otherwise do business with any person or entity engaged in the Restricted Business.

2



 

(c)                                   As used herein, the “ Restricted Area” consists of: (i) the United States and Canada; and (ii) any other geographic area where the Company conducts business during the period of Employee’s employment with the Company or its Affiliates and for which Employee has had material responsibilities during the course of Employee’s employment with the Company or its Affiliate, or about which such business Employee has obtained material Confidential Information during such employment.

 

(d)                                  If any court construes any of the provisions of this Section 2, or any part thereof, to be unreasonable because of the duration of such provision or the geographic scope thereof, such court shall have the power to reduce the duration or restrict the geographic scope of such provision and to enforce such provision as so reduced or restricted.

 

(e)                                   Employee expressly acknowledges and agrees that the restrictions set forth in this Agreement are reasonable in all respects and no greater than necessary to protect the Company’s legitimate business interests, including the protection of its Confidential Information and goodwill.  Employee further represents that enforcement of this Agreement is in the public interest and that Employee would not suffer undue hardship as the result of such enforcement, and that the Company’s need for the protections afforded by this Agreement is greater than any hardship Employee might experience by complying with its terms.

 

3.                                       Right to Injunction .  Employee acknowledges that Employee’s violation or threatened or attempted violation of the covenants contained in this Agreement will cause irreparable harm to the Company and that money damages would not be sufficient remedy for any breach of these sections.  Employee agrees that the Company shall be entitled as a matter of right to specific performance of the covenants in this Agreement, including entry of an ex parte temporary restraining order in state or federal court, preliminary and permanent injunctive relief against activities in violation of this Agreement, or both, or other appropriate judicial remedy, writ or order, in any court of competent jurisdiction, restraining any violation or further violation of such agreements by Employee or others acting on Employee’s behalf, without any showing of irreparable harm and without any showing that the Company does not have an adequate remedy at law.  Such remedies shall be in addition to all other remedies available to the Company, both at law and equity.

 

4.                                       Long Term Incentive Plan Agreement and Change in Control Agreements Employee acknowledges that Employee’s entry into this Agreement is a condition of the Company’s Grant of Phantom Units under the Global Partners LP Long-Term Incentive Plan and the Company’s entry into that certain Executive Change of Control Agreement.  Employee acknowledges and agrees that, in entering into this Agreement, Employee is receiving new consideration to which Employee was not otherwise entitled but for Employee’s entry into this Agreement.

 

5.                                       Miscellaneous .

 

(a)                                  Modification .  Subject to the provisions of Section 2(d), both parties agree that neither has the authority to modify or amend this Agreement unless the modification or amendment is in writing and signed by both of them.

 

3



 

(b)                                  Severability .  If any term, provision, covenant or condition of this Agreement (or part thereof) is held by a court of competent jurisdiction to be illegal, invalid, unenforceable or void, the validity and enforceability of the remainder of this Agreement shall not in any way be affected, impaired or invalidated.

 

(c)                                   Survival .  Employee’s obligations under this Agreement shall survive the termination for whatever reason of Employee’s employment. 

 

(d)                                  Assignment .  Employee shall not assign, pledge or encumber any interest in this Agreement or any part thereof without the express written consent of the Company, this Agreement being personal to Employee.  The Company may assign this Agreement to, and shall bind, a successor to its business without the requirement of a consent by Employee.  If the Company shall merge or consolidate with or into, or transfer substantially all of its assets to, another corporation or other form of business organization, then this Agreement shall bind the successor of the Company resulting from such merger, consolidation or transfer.

 

(e)                                   Third Party Beneficiaries .  Each Affiliate of the Company shall be a third party beneficiary of Employee’s obligations under the provisions of this Agreement and shall have the right to enforce this Agreement as if a party hereto.  As used herein, the term “ Affiliate ” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question.  As used herein, the term “ control ” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.  “ Person ” means any individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.

 

6.                                       Employee’s Representations .

 

(a)                                  Employee represents and warrants to the Company that (i) Employee does not have any agreement with any prior employer or other third party that will prohibit Employee from working for the Company or fulfilling the Employee’s duties and obligations to the Company, and (ii) Employee has complied with all non-competition, non-solicitation, and confidentiality duties imposed on Employee with respect to Employee’s former employers and other third parties.

 

(b)                                  Employee is a sophisticated executive, has had sufficient time to carefully consider the terms of this Agreement including any future hardship that entering into this Agreement may cause, has had sufficient opportunity to consult an attorney, and enters into this Agreement knowingly and voluntarily with full understanding of this Agreement’s terms.

 

7.                                       Choice of Law; Dispute Resolution .  This Agreement shall be governed by and construed in accordance with the substantive laws of the Commonwealth of Massachusetts.  Any dispute arising out of, or relating to this Agreement shall be subject to the exclusive jurisdiction of the state or federal courts, as applicable, with jurisdiction over Waltham, Massachusetts.

 

4



 

Employee expressly acknowledges the reasonableness and appropriateness of such forum(s) and venues and agrees not to contest such forum or venue selection.

 

8.                                       At-Will Employment .  Nothing in this Agreement will alter the at-will nature of Employee’s employment, as either Employee or the Company may terminate Employee’s employment at any time.

 

I HAVE READ THIS AGREEMENT CAREFULLY, AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS THAT IT IMPOSES UPON ME WITHOUT RESERVATION.  I SIGN THIS AGREEMENT VOLUNTARILY AND FREELY.

 

COMPANY:

EMPLOYEE:

 

 

 

 

 

 

 

 

By:

/s/ Edward J. Faneuil

 

By:

/s/ Daphne H. Foster

 

 

 

 

 

Name:

Edward J. Faneuil

 

Date:

June 27, 2013

 

 

 

 

 

Title:

Executive Vice President

 

 

 

 

 

 

 

 

Date:

June 27, 2013

 

 

 

 

5


Exhibit 10.8

 

CONFIDENTIALITY, NON-SOLICITATION AND NON-COMPETITION AGREEMENT

 

This Confidentiality, Non-Solicitation and Non-Competition Agreement (this “ Agreement ”) is executed and agreed to as of June 27, 2013, by and between Mark Romaine (“ Employee ”), an individual, and Global GP LLC, together with any successor or assign (the “ Company ”).  Employee’s obligations under this Agreement survive the termination of Employee’s employment regardless of the reason for such termination.

 

WHEREAS, in consideration of Employee’s continued employment in which, the Company contemporaneously with Employee’s entry into this Agreement will promote Employee to the position of Chief Operating Officer, which position is characterized by substantially greater responsibility and compensation; and

 

WHEREAS, as further consideration for executing and agreeing to this Agreement, the Company has entered into that certain Executive Change of Control Agreement and issued that certain Grant of Phantom Units in the Global Partners LP Long Term Incentive Plan, which such consideration the Company would not have provided but for Employee’s entry into this Agreement.

 

NOW, THEREFORE, in consideration of the mutual promises and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Employee, each intending to be legally bound, hereby agree as follows:

 

1.                                       Protection of Confidential Information; Unauthorized Disclosure

 

(a)                                  For purposes of this Agreement, “ Confidential Information ” means any and all confidential or proprietary information and materials, as well as all trade secrets, belonging to the Company or its Affiliates.  Confidential Information includes, regardless of whether such information or materials are expressly identified or marked as confidential or proprietary, and whether or not patentable: (1) technical information and materials of the Company or its Affiliates; (2) non-public business information and materials of the Company or its Affiliates; (3) any information or material that gives the Company or its Affiliates an advantage with respect to its competitors by virtue of not being known by those competitors; (4) potential expansion and development plans; projections, forecasts and budgets; growth strategies; marketing plans; pricing information; customer and supplier information; and (5) other valuable, confidential information and materials and/or trade secrets of the Company or its Affiliates.  Notwithstanding the foregoing, Confidential Information shall not include information that (i) is already properly in the public domain or enters the public domain with the express consent of the Company or its Affiliates, or (ii) is intentionally made available by the Company or its Affiliates to third parties without any expectation of confidentiality.

 

(b)                                  Employee acknowledges and agrees that Confidential Information has been and will be developed or acquired by the Company or its Affiliates through the expenditure of substantial time, effort and money and provides the Company and its Affiliates with an advantage over competitors who do not know or use such Confidential Information.  Employee

 



 

further acknowledges and agrees that the nature of the Confidential Information which the Company has provided Employee and shall provide Employee during Employee’s continued employment would make it difficult, if not impossible, for Employee to perform in a similar capacity for a business competitive with the Company during the Restricted Period without disclosing or utilizing confidential information.

 

(c)                                   During and following Employee’s employment by the Company, Employee shall hold in confidence and not directly or indirectly disclose or use or copy any Confidential Information except to the extent necessary to carry out Employee’s duties on behalf of the Company.  The foregoing shall not prevent Employee from disclosing Confidential Information if so required by legal process; however, Employee agrees to give the Company notice of any and all attempts to compel disclosure of any Confidential Information within one (1) business day after Employee is informed that such disclosure is being, or will be, compelled.  Such written notice shall include a description of the information to be disclosed, the court, government agency, or other forum through which the disclosure is sought, and the date by which the Confidential Information is to be disclosed, and shall contain a copy of the subpoena, order or other process used to compel disclosure.

 

(d)                                  Upon the termination of Employee’s employment by the Company, Employee promises to promptly return to the Company all Confidential Information, and all documents and materials (including electronically stored information) in Employee’s possession, custody or control that constitutes or reflects Confidential Information.

 

2.                                       Non-Competition and Other Restrictive Covenants .

 

(a)                                  During the remaining term that Employee is employed by the Company and any of its Affiliates and continuing through the date that is two (2) years after the date that Employee is no longer employed by the Company or any of its Affiliates (the “ Restricted Period ”), Employee shall be prohibited from directly or indirectly working (as an employee, consultant, advisor, director or otherwise) for, engaging in or acquiring or investing in any business engaged in (or actively considering engagement in) the following businesses within the Restricted Area: (a) wholesale and/or retail marketing, sale, distribution and transportation of refined petroleum products, crude oil, renewable fuels (including ethanol and biofuels), natural gas liquids (including ethane, butane, propane and condensates), natural gas, compressed natural gas and liquefied natural gas; (b) the storage of refined petroleum products and/or any of the other products identified in clause (a) of this paragraph in connection with any of the activities described in said clause (a); (c) the sale of convenience store items and sundries and related food service related to the retail sale of gasoline; and (d) bunkering (such business activities referenced in parts (a) through (d) are referred to as the “ Restricted Business ”).

 

(b)                                  During the Restricted Period, Employee also shall not directly or indirectly solicit any employees, contractors, vendors, suppliers or customers of the Company or its Affiliates to cease to be employed by or otherwise do business with the Company or its Affiliates, or to reduce the same, or to be employed or otherwise do business with any person or entity engaged in the Restricted Business.

2



 

(c)                                   As used herein, the “ Restricted Area” consists of: (i) the United States and Canada; and (ii) any other geographic area where the Company conducts business during the period of Employee’s employment with the Company or its Affiliates and for which Employee has had material responsibilities during the course of Employee’s employment with the Company or its Affiliate, or about which such business Employee has obtained material Confidential Information during such employment.

 

(d)                                  If any court construes any of the provisions of this Section 2, or any part thereof, to be unreasonable because of the duration of such provision or the geographic scope thereof, such court shall have the power to reduce the duration or restrict the geographic scope of such provision and to enforce such provision as so reduced or restricted.

 

(e)                                   Employee expressly acknowledges and agrees that the restrictions set forth in this Agreement are reasonable in all respects and no greater than necessary to protect the Company’s legitimate business interests, including the protection of its Confidential Information and goodwill.  Employee further represents that enforcement of this Agreement is in the public interest and that Employee would not suffer undue hardship as the result of such enforcement, and that the Company’s need for the protections afforded by this Agreement is greater than any hardship Employee might experience by complying with its terms.

 

3.                                       Right to Injunction .  Employee acknowledges that Employee’s violation or threatened or attempted violation of the covenants contained in this Agreement will cause irreparable harm to the Company and that money damages would not be sufficient remedy for any breach of these sections.  Employee agrees that the Company shall be entitled as a matter of right to specific performance of the covenants in this Agreement, including entry of an ex parte temporary restraining order in state or federal court, preliminary and permanent injunctive relief against activities in violation of this Agreement, or both, or other appropriate judicial remedy, writ or order, in any court of competent jurisdiction, restraining any violation or further violation of such agreements by Employee or others acting on Employee’s behalf, without any showing of irreparable harm and without any showing that the Company does not have an adequate remedy at law.  Such remedies shall be in addition to all other remedies available to the Company, both at law and equity.

 

4.                                       Long Term Incentive Plan Agreement and Change in Control Agreements Employee acknowledges that Employee’s entry into this Agreement is a condition of the Company’s Grant of Phantom Units under the Global Partners LP Long-Term Incentive Plan and the Company’s entry into that certain Executive Change of Control Agreement.  Employee acknowledges and agrees that, in entering into this Agreement, Employee is receiving new consideration to which Employee was not otherwise entitled but for Employee’s entry into this Agreement.

 

5.                                       Miscellaneous .

 

(a)                                  Modification .  Subject to the provisions of Section 2(d), both parties agree that neither has the authority to modify or amend this Agreement unless the modification or amendment is in writing and signed by both of them.

 

3



 

(b)                                  Severability .  If any term, provision, covenant or condition of this Agreement (or part thereof) is held by a court of competent jurisdiction to be illegal, invalid, unenforceable or void, the validity and enforceability of the remainder of this Agreement shall not in any way be affected, impaired or invalidated.

 

(c)                                   Survival .  Employee’s obligations under this Agreement shall survive the termination for whatever reason of Employee’s employment.  .

 

(d)                                  Assignment .  Employee shall not assign, pledge or encumber any interest in this Agreement or any part thereof without the express written consent of the Company, this Agreement being personal to Employee.  The Company may assign this Agreement to, and shall bind, a successor to its business without the requirement of a consent by Employee.  If the Company shall merge or consolidate with or into, or transfer substantially all of its assets to, another corporation or other form of business organization, then this Agreement shall bind the successor of the Company resulting from such merger, consolidation or transfer.

 

(e)                                   Third Party Beneficiaries .  Each Affiliate of the Company shall be a third party beneficiary of Employee’s obligations under the provisions of this Agreement and shall have the right to enforce this Agreement as if a party hereto.  As used herein, the term “ Affiliate ” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question.  As used herein, the term “ control ” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.  “ Person ” means any individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.

 

6.                                       Employee’s Representations .

 

(a)                                  Employee represents and warrants to the Company that (i) Employee does not have any agreement with any prior employer or other third party that will prohibit Employee from working for the Company or fulfilling the Employee’s duties and obligations to the Company, and (ii) Employee has complied with all non-competition, non-solicitation, and confidentiality duties imposed on Employee with respect to Employee’s former employers and other third parties.

 

(b)                                  Employee is a sophisticated executive, has had sufficient time to carefully consider the terms of this Agreement including any future hardship that entering into this Agreement may cause, has had sufficient opportunity to consult an attorney, and enters into this Agreement knowingly and voluntarily with full understanding of this Agreement’s terms.

 

7.                                       Choice of Law; Dispute Resolution .  This Agreement shall be governed by and construed in accordance with the substantive laws of the Commonwealth of Massachusetts.  Any dispute arising out of, or relating to this Agreement shall be subject to the exclusive jurisdiction of the state or federal courts, as applicable, with jurisdiction over Waltham, Massachusetts.

 

4



 

Employee expressly acknowledges the reasonableness and appropriateness of such forum(s) and venues and agrees not to contest such forum or venue selection.

 

8.                                       At-Will Employment .  Nothing in this Agreement will alter the at-will nature of Employee’s employment, as either Employee or the Company may terminate Employee’s employment at any time.

 

I HAVE READ THIS AGREEMENT CAREFULLY, AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS THAT IT IMPOSES UPON ME WITHOUT RESERVATION.  I SIGN THIS AGREEMENT VOLUNTARILY AND FREELY.

 

COMPANY:

EMPLOYEE:

 

 

 

 

 

 

 

 

By:

/s/ Edward J. Faneuil

 

By:

/s/ Mark Romaine

 

 

 

 

 

Name:

Edward J. Faneuil

 

Date:

June 27, 2013

 

 

 

 

 

Title:

Executive Vice President

 

 

 

 

 

 

 

 

Date:

June 27, 2013

 

 

 

 

5