AMENDED AND RESTATED EMPLOYMENT AGREEMENT
EXHIBIT 10.1
AMENDED AND RESTATED
THIS AGREEMENT, dated as of _____, 2008, by and between Suburban Propane, L.P. (the
“Partnership”) and Xxxx X. Xxxxxxxxx (the “Executive”).
WHEREAS, the Partnership and the Executive are party to an Employment Agreement dated March
5, 1996 (the “Original Effective Date”)with such agreement having been amended effective March 5,
1996, October 23, 1997 and November 2, 2005 (collectively, the “Previous Agreement”), and
The term of employment under this Agreement shall continue to be for a period commencing on
March 5, 2008 and ending on March 5, 2009 (the “Renewal Date”), or if extended pursuant to this
Section 1, ending on any anniversary of the Renewal Date, subject to termination as hereinafter
provided (such initial period and extension(s) thereof being hereinafter referred to as the
“Employment Term”). Unless earlier terminated in accordance with the provisions of Section 5
hereof, upon the Renewal Date and upon each anniversary date thereof, the Employment Term shall be
automatically extended for an additional period of one year upon the terms and conditions set forth
herein unless written notice of termination (a “Non-Renewal Notice”) is given by either party at
least ninety days prior to the Renewal Date or relevant anniversary thereof, in which event the
provisions of Section 6 shall apply.
2.2. Exclusive Employment. During the Employment Term, the Executive shall not engage
in other employment or consulting work or any trade or business for his own account or for or on
behalf of any other person, firm or corporation. Notwithstanding the foregoing, during the
Employment Term the Executive may (a) serve on (i) civil and charitable boards and committees and
(ii) such other corporate boards or committees as are approved by the Board, which approval shall
not be unreasonably withheld and (b) manage personal investments, provided that such
service or management does not interfere with the performance of the Executive’s duties hereunder.
In consideration for his services under this Agreement, the Executive shall be compensated
as follows:
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(a) The Partnership shall purchase during the Employment Term, on behalf of the Executive,
term life insurance coverage payable to the Executive’s designated beneficiary, with a face amount
equal to three times the Executive’s Base Salary.
(b) The Partnership shall include the Executive in the Suburban Propane Company Supplemental
Executive Retirement Plan, effective as of October 1, 1994 (the “SERP”) maintained by the
Partnership immediately prior to the Original Effective Date.
(c) The Partnership shall reimburse the Executive for any and all costs and expenses
reasonably incurred by the Executive in connection with the Executive’s leasing of a car provided,
however, (i) the Partnership shall pay the expenses not later than the end of the calendar year
following the calendar year in which the expenses are incurred, (ii) the amount of such expenses
that the Partnership is obligated to pay in any given calendar year shall not affect the expenses
that the Partnership is obligated to pay in any other calendar year, and (iii) the Executive’s
right to have the Partnership pay such expenses may not be liquidated or exchanged for any other
benefit.
(d) For purposes of any retirement plans maintained by the Partnership (including, but not
limited to, any qualified pension and 401(k) plans and the SERP), the Executive shall receive past
service credit for service with Xxxxxx America Inc. for purposes of eligibility, vesting and
benefit accruals under such plans; provided, however, that the benefits payable to the Executive
under such plans of the Partnership shall be reduced by and shall in no way duplicate benefits
payable to the Executive under such plans of Xxxxxx America Inc.
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The Executive and the Partnership recognize that due to the nature of the Executive’s
engagement hereunder and the relationship of the Executive to the Partnership and the MLP, the
Executive will have access to and will acquire, and may assist in developing, confidential and
proprietary information relating to the business and operations of the Partnership, the MLP and
their affiliates, including, without limiting the generality of the foregoing, information with
respect to the business of the Partnership, the MLP and their affiliates. The Executive
acknowledges that such information will be of central importance to the business of the
Partnership, the MLP and their affiliates and that disclosure of it to, or its use by, others
could cause substantial loss to the Partnership and the MLP. The Executive accordingly agrees as
follows:
(a) Until the later of (i) if any severance is payable pursuant to Section 6.2 hereof, the
expiration of the Severance Period (as defined in Section 6.2 hereof) or (ii) the second
anniversary of the expiration or termination of the Employment Term (the period from the Original
Effective Date until such later date being referred to as the “Non-Competition Period”), the
Executive shall not, directly or indirectly, either individually or as owner, partner, investor,
agent, director, officer, employee, consultant, independent contractor or otherwise, except for the
account of and on behalf of the Partnership, the MLP or their affiliates, own, manage, operate,
direct, join, control, be employed by, or participate in the ownership, management, operation or
control of, or be connected in any manner with, including, but not limited to, holding the
positions of shareholder, member, director, officer, consultant, agent, representative, independent
contractor, employee, partner or investor, in or for any business or enterprise engaged in (i) the
domestic retail distribution of propane for residential, commercial, industrial (including engine
fuel), agricultural or other retail users, (ii) the wholesale distribution of propane in the United
States or the wholesale brokerage of propane in Canada, or (iii) the domestic retail distribution
of propane-related supplies or equipment, including home and commercial appliances.
(b) During the Non-Competition Period, the Executive shall not, directly or indirectly, either
individually or as owner, partner, shareholder, member, investor, agent, director, officer,
employee, consultant, agent, independent contractor or otherwise, except for the account of and on
behalf of the Partnership, the MLP or their affiliates, solicit, endeavor to entice away from the
Partnership, the MLP or their affiliates, or otherwise engage in any activity to, directly or
indirectly, influence, attempt to influence, disrupt or terminate the relationship of the
Partnership, the MLP or any of their affiliates with, any of its customers, prospective customers,
suppliers, prospective suppliers, employees, directors, independent contractors, representatives,
agents or other persons or entities with a past, present or prospective relationship with the
Partnership, the MLP or any of their affiliates.
(c) Nothing in this Section 4 shall be construed to prevent the Executive from owning as an
investment not more than 0.5% of a class of equity or debt securities issued by any competitor of
the Partnership, which securities are publicly traded and registered under Section 12 of the
Securities Exchange Act of 1934.
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(a) With respect to payments made to the Executive pursuant to clause (a)(i) of Sections 6.1
and 6.2 and clause (i) of Section 6.3 (unpaid Base Salary), the Partnership shall pay the Executive
in a lump sum in cash, within 30 days after the Date of Termination
(b) With respect to payments made to the Executive pursuant to clause (a)(ii) of Sections 6.1
and 6.2 and clause (ii) of Section 6.3 (Pro-rata Bonus), the Partnership shall pay the Executive in
a lump sum in cash no later than the 15th day of the third month following the
end of the calendar year that includes the end of the fiscal year used in determining
achievement of the performance targets applicable to such payment, in accordance with Section 3.2
herein.
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(c) With respect to payments made to the Executive pursuant to clause (a)(iii) of Sections 6.1
and 6.2 (separation pay), if the Executive is a “Specified Employee” as defined in Section 9.2
herein on his Date of Termination, the Partnership shall pay the Executive in a lump sum in cash
upon the earlier of (a) a date no later than 30 days after Executive’s death, or (b) the first day
of the seventh month following Executive’s Date of Termination. In the case of any such delayed
payment, the Partnership shall pay interest on the delayed amount at a per annum rate equal to the
short-term applicable federal rate in accordance with section 1274(d) of the Internal Revenue Code
in effect for the month in which Date of Termination occurs. If the Executive is not a Specified
Employee on his Date of Termination, the Partnership shall pay the Executive in a lump sum in cash,
within 30 days after the Date of Termination.
(a) In the event that any payment or benefit (within the meaning of Section 280G(b)(2) of the
Internal Revenue Code of 1986, as amended (the “Code”)) to the Executive or for his benefit paid or
payable or distributed or distributable pursuant to the terms of this Agreement or otherwise in
connection with, or arising out of, his employment with the Partnership or a change in ownership or
effective control of the Partnership or of a substantial portion of its assets (a “Payment” or
“Payments”) would be subject to the excise tax imposed by Section 4999 of the Code or any interest
or penalties are incurred by the Executive with respect to such excise tax (such excise tax,
together with any such interest and penalties, are hereinafter collectively referred to as the
“Excise Tax”), then the Executive will be entitled to receive an additional payment (a “Gross-Up
Payment”) in an amount such that after payment by the Executive of all taxes (including the Excise
Tax, any interest or penalties, other than interest and penalties imposed by reason of the
Executive’s failure to file timely a tax return or pay taxes shown due on his return, imposed with
respect to such taxes and the Excise Tax), including any income tax and Excise Tax imposed upon the
Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments.
(b) An initial determination as to whether a Gross-Up Payment is required pursuant to this
Agreement and the amount of such Gross-Up Payment shall be made at the Partnership’s expense by an
accounting firm selected by the Partnership and reasonably acceptable to the Executive which is
designated as one of the five largest accounting firms in the United States (the “Accounting
Firm”). The Accounting Firm shall provide its determination (the “Determination”), together with
detailed supporting calculations and documentation, to the Partnership and the Executive within
five days of the Executive’s termination of employment (if applicable) or such other time as
requested by the Partnership or by the Executive (Provided the Executive reasonably believes that
any of the Payments may be subject to the Excise Tax). Within ten days of the delivery of the
Determination to the Executive, the Executive shall have the right to dispute the Determination
(the “Dispute”). The Gross-Up Payment, if any, as determined pursuant to this Section 6.5 shall be
paid by the Partnership to the Executive within five days of the receipt of the Determination. The
existence of the Dispute shall not in any way affect the Executive’s right to receive the Gross-Up
Payment in accordance with the Determination. If there is no Dispute, the Determination shall be
binding, final and conclusive
upon the Partnership and the Executive subject to the application of Section 6.5(c) below.
Notwithstanding anything contained in this Agreement to the contrary, any Gross-Up Payment pursuant
to this section 6.5(ii) shall be paid no later than the end of the calendar year following the
calendar year in which the corresponding taxes are remitted to the applicable government taxing
authority.
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(c) As a result of the uncertainty in the application of Sections 4999 and 280G of the Code,
it is possible that a Gross-Up Payment (or a portion thereof) will be paid which should not have
been paid (an “Excess Payment”) or a Gross-Up Payment (or a portion thereof) which should have been
paid will not have been paid (an “Underpayment”). An Underpayment shall be deemed to have occurred
(i) upon notice (formal or informal) to the Executive from any governmental taxing authority that
the Executive’s tax liability (whether in respect of the Executive’s current taxable year or in
respect of any prior taxable year) may be increased by reason of the imposition of the Excise Tax
on a Payment or Payments with respect to which the Partnership has failed to make a sufficient
Gross-Up Payment, (ii) upon a determination by a court, (iii) by reason of determination by the
Partnership (which shall include the position taken by the Partnership, together with its
consolidated group, on its federal income tax return) or (iv) upon the resolution of the Dispute to
the Executive’s satisfaction. If an Underpayment occurs, the Executive shall promptly notify the
Partnership and the Partnership, subject to its rights to dispute whether an overpayment exists and
the amount thereof, shall promptly, but in any event, at least five days prior to the date on which
the applicable government taxing authority has requested payment, pay to the Executive an
additional Gross-Up Payment equal to the amount of the Underpayment plus any interest and penalties
(other than interest and penalties imposed by reason of the Executive’s failure to file timely a
tax return or pay taxes shown due on the Executive’s return) imposed on the Underpayment.
Notwithstanding anything contained in this Agreement to the contrary, any Underpayment pursuant to
this section 6.5(c) shall be paid to the Executive no later than the end of the calendar year
following the calendar year in the corresponding taxes are remitted to the applicable government
taxing authority. An Excess Payment shall be deemed to have occurred upon a “Final Determination”
(as hereinafter defined) that the Excise Tax shall not be imposed upon a Payment or Payments (or
portion thereof) with respect to which the Executive had previously received a Gross-Up Payment. A
“Final Determination” shall be deemed to have occurred when the Executive has received from the
applicable government taxing authority a refund of taxes or other reduction in the Executive’s tax
liability by reason of the Excess Payment and upon either (x) the date a determination is made by,
or an agreement is entered into with, the applicable governmental taxing authority which finally
and conclusively binds the Executive and such taxing authority, or in the event that a claim is
brought before a court of competent jurisdiction, the date upon which a final determination has
been made by such court and either all appeals have been taken and finally resolved or the time for
all appeals has expired or (y) the statute of limitations with respect to the Executive’s
applicable tax return has expired. If an Excess Payment is determined to have been made, the
amount of the Excess Payment shall be treated as a loan by the Partnership to the Executive and the
Executive shall pay to the Partnership on demand (but not less than 10 days after the determination
of such Excess Payment and written notice has been delivered to the Executive) the amount of the
Excess Payment plus interest at an annual rate equal to the Applicable Federal Rate provided for in
Section 1274(d) of the Code from the date the Gross-Up Payment (to which the Excess Payment
relates) was paid to the Executive until the date of repayment to the Partnership.
(d) Notwithstanding anything contained in this Agreement to the contrary, in the event that,
according to the Determination, an Excise Tax will be imposed on any Payment or Payments, the
Partnership shall pay to the applicable government taxing authorities as Excise Tax and income tax
withholding, the amount of the Excise Tax and income tax that the Partnership has actually withheld
from the Payment or Payments.
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(a) “Pro-rata Bonus” means the bonus that the Executive would have been entitled to receive
under Section 3.2 as an Annual Bonus for the full fiscal year in which his employment terminated,
multiplied by the number of days from the beginning of such fiscal year until the Date of
Termination and divided by 365. The Pro-rata Bonus shall be determined by the Compensation
Committee in the manner described in Section 3.2.
(b) “Competition Event” means any act or activity by the Executive, directly or indirectly,
which the Partnership deems, in its good faith judgment, to be a violation of Section 4.1 hereof.
(c) “Change of Control” means:
(i) the date on which any Person, or More than One Person Acting as a Group, (as those terms
are defined below) acquires or has acquired during the 12-month period ending on the date of the
most recent acquisition by such Person or More than One Person Acting as a Group (other than an
acquisition directly by the Partnership, Suburban Energy Service Group LLC or any of their
affiliates) Common Units or other voting equity interests of the Partnership (“Voting Securities”)
immediately after which such Person or More than One Person Acting as a Group has Beneficial
Ownership (as that term is defined below) of more than thirty percent (30%) of the combined voting
power of the Partnership’s then outstanding Common Units; provided, however, that in determining
whether a Change in Control has occurred, Common Units which are acquired in a Non-Control
Acquisition (as that term is defined below) shall not constitute an acquisition which would cause a
Change in Control. A “Non-Control Acquisition” shall mean an acquisition by (x) an employee
benefit plan (or a trust forming a part there) maintained by (A) the Partnership or Suburban, or
(B) any corporation, partnership or other Person of which a majority of its voting power or its
voting equity securities or equity interest is owned, directly or indirectly, by the Partnership,
(y) the Partnership or its subsidiaries, or (z) any Person or More than One Person Acting as a
Group in connection with a Non-Control Transaction (as that term is defined below); or
(ii) approval by the partners of the Partnership of (x) a merger, consolidation or
reorganization involving the Partnership, unless (A) the holders of the Common Units immediately
before such merger, consolidation or reorganization own, directly or indirectly immediately
following such merger, consolidation or reorganization, at least fifty percent (50%) of the
combined voting power of the outstanding Common Units of the entity resulting from such merger,
consolidation or reorganization (the “Surviving Entity”) in substantially the same proportion as
their ownership of the Common Units immediately before such merger, consolidation or
reorganization, and (B) no person or entity (other than the Partnership, any subsidiary thereof,
any employee benefit plan (or any trust forming a part
thereof) maintained by the Partnership, any subsidiary thereof, the Surviving Entity, or any
Person who, immediately prior to such merger, consolidation or reorganization, had Beneficial
Ownership of more than twenty five percent (25%) of then outstanding Common Units), has Beneficial
Ownership of more than twenty five percent (25%) of the combined voting power of the Surviving
Entity’s then outstanding voting securities; (y) a complete liquidation or dissolution of the
Partnership; or (z) the sale or other disposition of forty percent (40%) of the total gross fair
market value of all the assets of the Partnership to any Person or More than One Person Acting as a
Group (other than a transfer to a subsidiary of the Partnership). For this purpose, gross fair
market value means the value of the assets of the Partnership, or the value of the assets being
disposed of, determined without regard to any liability associated with such assets. A transaction
described in clause (A) or (B) of subsection (x) hereof shall be referred to as a “Non-Control
Transaction.”
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Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because
any Person (the “Subject Person”) acquired Beneficial Ownership of more than the permitted amount
of the outstanding Voting Securities as a result of the acquisition of Voting Securities by the
Partnership which, by reducing the number of Voting Securities outstanding, increases the
proportional number of Common Units Beneficially Owned by the Subject Person, provided that if a
Change in Control would occur (but for the operation of this sentence) as a result of the
acquisition of Voting Securities by the Partnership, and after such acquisition of Voting
Securities by the Partnership, the Subject Person becomes the Beneficial Owner of any additional
Voting Securities which increases the percentage of the then outstanding Voting Securities
Beneficially Owned by the Subject Person, then a Change in Control shall occur.
For purposes of the foregoing definition of Change in Control, “Person” and “Beneficial
Ownership” have the meanings used for purposes of Section 13(d) or 14(d) of the Securities Exchange
Act of 1934, as amended, and “More than one Person Acting as a Group” has the same meaning as set
forth in Treasury Regulation 1.409A-3(i)(5)(v)(B).
The Executive represents and warrants to the Partnership that the execution of this Agreement
by him and his performance of his obligations hereunder will not, with or without the giving of
notice or the passage of time or both, conflict with, result in the breach of any provision of or
the termination of, or constitute a default under, any agreement to which the Executive is a party
or by which the Executive is bound.
8.1 This Agreement shall be governed by and construed in accordance with the laws of the State
of New Jersey, without giving effect to the conflicts of laws principles thereof. The captions of
this Agreement are not part of the provisions hereof and shall have no force or effect. This
Agreement may not be amended or modified otherwise than by a written agreement executed by the
Partnership and the Executive or their respective successors and legal representatives.
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8.2 All notices and other communications hereunder shall be in writing and shall be given by
facsimile, hand delivery to the other party or by registered or certified mail, return receipt
requested, postage prepaid, addressed as follows:
If to the Executive:
Xxxx X. Xxxxxxxxx
x/x Xxxxxxxx Xxxxxxx
Xxx Xxxxxxxx Xxxxx
000 Xxxxx 00 Xxxx
X.X. Xxx 000
Xxxxxxxx, XX 00000-0000
x/x Xxxxxxxx Xxxxxxx
Xxx Xxxxxxxx Xxxxx
000 Xxxxx 00 Xxxx
X.X. Xxx 000
Xxxxxxxx, XX 00000-0000
With Copies To:
Xxxxxxx Xxxxxxxxx
Xxxxxxx Xxxxxxxxx
Xxxxx & Xxxxxxx LLP
000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
If to the Partnership:
Suburban Propane, L.P.
Xxx Xxxxxxxx Xxxxx
000 Xxxxx 00 Xxxx
Xxxxxxxx, Xxx Xxxxxx 00000-0000
Telecopier: (000) 000-0000
Attention: Xxxx Xxxx, Vice President, General Counsel and Secretary
Xxx Xxxxxxxx Xxxxx
000 Xxxxx 00 Xxxx
Xxxxxxxx, Xxx Xxxxxx 00000-0000
Telecopier: (000) 000-0000
Attention: Xxxx Xxxx, Vice President, General Counsel and Secretary
or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notice and communications shall be effective when actually received by the addressee.
8.3 Any term or provision of this Agreement which is invalid or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity or
unenforceability without rendering invalid or unenforceable the remaining terms or provisions of
this Agreement or affecting the validity or enforceability of any of the terms or provisions of
this Agreement in any other jurisdiction.
8.4 Notwithstanding any other provision (including Section 3) of this Agreement to the
contrary, the Partnership or other payor may withhold from any amounts payable under this Agreement
such taxes or other amounts as shall be required to be withheld pursuant to any applicable law or
regulation.
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8.5 The Executive’s or the Partnership’s failure to insist upon strict compliance with any
provision hereof shall not be deemed to be a waiver of such provision or any other provision
hereof.
8.6 This Agreement contains the entire understanding of the Partnership and the Executive with
respect to the subject matter hereof and thereof and supersedes all prior agreements between the
Partnership and the Executive, whether oral or written.
8.7 This Agreement shall be binding upon and inure solely to the benefit of the parties hereto
and their respective successors, permitted assigns, heirs, distributees and legal representatives,
including any partnership, corporation or other business organization with which the Partnership
may merge or consolidate and the Partnership will require any successor to all or substantially all
of the business or assets of the Partnership to expressly assume and agree to perform this
Agreement in the same manner as the Partnership would be so required to do. Nothing in this
Agreement, express or implied, is intended to confer upon any other person or entity any rights or
remedies of any nature whatsoever under or by reason of this Agreement. Insofar as the Executive
is concerned, this contract, being personal, cannot be assigned.
8.8 “Business Day” means any day excluding Saturday, Sunday, and any day which shall be in the
City of New York a legal holiday or a day which banking institutions in the City of New York are
authorized by law or other government action to close. If any date on which a payment is required
to be made hereunder is not a Business Day, then such payment (without any additional interest)
shall be made on the next succeeding Business Day.
8.9 Any controversy, dispute or claim arising under this Agreement or any breach thereof
(other than in connection with Section 4 hereof) shall be settled by arbitration conducted in New
York City in accordance with the Employment Dispute Resolution Rules of the American Arbitration
Association, and judgment upon any award rendered by the arbitrator may be entered by any federal
or state court having jurisdiction thereof. Any such arbitration shall be conducted by a single
arbitrator who shall be a member of the National Academy of Arbitrators. If the parties are unable
to agree upon an arbitrator, then an arbitrator shall be appointed in accordance with the rules of
the American Arbitration Association. The parties intend that this agreement to arbitrate be
valid, enforceable and irrevocable and that any determination reached pursuant to the foregoing
procedure shall be final and binding on the parties absent fraud. Each party shall pay its own
costs and expenses of such arbitration and the fees and expenses of the arbitrator shall be borne
equally by the parties, except that the arbitrators shall be entitled to award the reasonable
attorneys’ fees and costs and the reasonable costs of arbitration to the Executive if the Executive
prevails in such arbitration in any material respect. Any amount reimbursable by the Partnership
under this Section 8.9 in any one calendar year shall not affect the amount reimbursable in any
other calendar year, and the reimbursement of an eligible expense shall be made within five
business days after delivery of Executive’s respective written requests for payment accompanied
with such evidence of fees and expenses incurred as the Partnership reasonably may require, but in
any event no later than the end of the calendar following the calendar year in which the expense
was incurred.
8.10 This Agreement may be executed in two or more counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same instrument.
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9.1 Notwithstanding anything in this Agreement to the contrary, to the extent that any amount
or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of
the Code would otherwise be payable or distributable hereunder by reason of the Executive’s
Termination of Employment, such amount or benefit will not be payable or distributable to Executive
by reason of such circumstance unless (a) the circumstances giving rise to such termination of
employment meet any description or definition of “separation from service” in Section 409A of the
Code and applicable regulations (without giving effect to any elective provisions that may be
available under such definition, a “Separation from Service”), or (b) the payment or distribution
of such amount or benefit would be exempt from the application of Section 409A of the Code by
reason of the short-term deferral exemption or otherwise. This provision does not prohibit the
vesting of any amount upon a termination of employment, however defined. If this provision
prevents the payment or distribution of any amount or benefit, such payment or distribution shall
be made on the date, if any, on which an event occurs that constitutes a Section 409A-compliant
“Separation from Service” or such later date as may be required by Section 9.2 below.
9.2 Notwithstanding anything in this Agreement to the contrary, if any amount or benefit that
would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code would
otherwise be payable or distributable under this Agreement by reason of the Executive’s Separation
from Service during a period in which he is a Specified Employee (as defined below), then, subject
to any permissible acceleration of payment by the Company under Treas. Reg. Section
1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi)
(payment of employment taxes):
(a) if the payment or distribution is payable in a lump sum, the Executive’s right to
receive payment or distribution of such non-exempt deferred compensation will be delayed
until the earlier of the Executive’s death or the first day of the seventh month following
the Executive’s Separation from Service; and
(b) if the payment or distribution is payable over time, the amount of such non-exempt
deferred compensation that would otherwise be payable during the six-month period
immediately following the Executive’s Separation from Service will be accumulated and
Executive’s right to receive payment or distribution of such accumulated amount will be
delayed until the earlier of Executive’s death or the first day of the seventh month
following the Executive’s Separation from Service, whereupon the accumulated amount will be
paid or distributed to the Executive and the normal payment or distribution schedule for any
remaining payments or distributions will resume.
For purposes of this Agreement, the term “Specified Employee” has the meaning given such term
in Code Section 409A and the final regulations thereunder (“Final 409A Regulations”), provided,
however, that, as permitted in the Final 409A Regulations, the
Partnership’s Specified Employees and its application of the six-month delay rule of Code
Section 409A(a)(2)(B)(i) shall be determined in accordance with rules adopted by the Board of
Supervisors or a committee thereof, which shall be applied consistently with respect to all
nonqualified deferred compensation arrangements of the Partnership, including this Agreement.
* * * * * * * * * * * * * * *
(signatures on next page)
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SUBURBAN PROPANE, L.P. | |||||||
By: | |||||||
Name: | |||||||
Title: | |||||||
/s/ XXXX X. XXXXXXXXX | |||||||
Xxxx X. Xxxxxxxxx |
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