Susser Holdings Corp. 2006 Form of Converted Stock Option Agreement




 Exhibit 10.23 
 CONVERTED OPTION FORM AGREEMENT 
 Susser Holdings Corporation 
 2006 EQUITY INCENTIVE PLAN 
 STOCK OPTION AGREEMENT 
 THIS AGREEMENT (the “Agreement”), is made effective as of the      day of             , 200_, between
Susser Holdings Corporation, a Delaware corporation (the “Company”) and
                                 (hereinafter, the
“Participant”): 
 RECITALS: 
 WHEREAS, the Company has adopted the 2006 Equity Incentive Plan (the “Plan”), which Plan is incorporated herein by reference and made a part of this Agreement. Capitalized terms not otherwise defined
herein shall have the same meanings as in the Plan; and 
 WHEREAS, on December 26, 2005 (“Date of Unit Option Grant”)
the Participant was previously granted a unit option under the Stripes Holdings LLC Unit Option Plan to purchase Class A Units of Stripes Holdings LLC (the “Unit Option”); 
 WHEREAS, in connection with the public offering of the shares of the Company’s common stock and the reorganization of Stripes Holdings LLC, the
Participant’s Unit Option will be converted into a stock option to purchase Shares (the “Option”) pursuant to a pre-established conversion formula as set forth in that certain Agreement and Plan of Merger, dated
                    , 2006, among the Company, Susser Holdings Merger LLC and Stripes Holdings LLC (the “Merger Agreement”);

 WHEREAS, the Committee and Participant desire hereby to set forth certain restrictions and vesting requirements related to the ownership
of the Option by the Participant and other matters described herein; and 
 WHEREAS, the Option shall be subject to substantially the same
terms and conditions applicable to the pre-conversion Unit Option and as set forth herein. 
 NOW THEREFORE, in consideration of the mutual
covenants hereinafter set forth, the parties agree as follows: 
 1. Grant of the Option 
 On the terms and conditions set forth in this Agreement, the Option received by the Participant pursuant to the terms of the Merger Agreement shall
represent the right of the Participant to purchase a number of Shares at an Exercise Price (subject to the adjustment provisions in the Plan) as set forth below. The Option is not intended to be treated as an Incentive Stock Option that complies
with Section 422 of the Code. The Option substitutes and replaces in its entirety the Unit Option and, in accordance with the terms of the Merger Agreement and Delaware law, the Participant shall have no further rights with respect to the Unit
Option. 









	 	A.	Option Grant: 

  

				
	 Number of Shares subject to Option
	  	Exercise Price
	 x,xxx
	  	$	xxx

  

	 	B.	Vesting Schedule: 

  

				
	 Date
	  	Percentage of Option
Vested	 
	 First Anniversary of Date of Unit Option Grant
	  	0	%
	 Second Anniversary of Date of Unit Option Grant
	  	0	%
	 Third Anniversary of Date of Unit Option Grant
	  	33 1/3	%
	 Fourth Anniversary of Date of Unit Option Grant
	  	66 2/3	%
	 Fifth Anniversary of Date of Unit Option Grant
	  	100	%

  

	 	C.	Expiration Date. The Expiration Date of the Option shall be December 25, 2015, except that this Option shall expire sooner if the Participant’s Service terminates
as described in this Agreement. 

  

	 	D.	Death or Disability. In the event of the death or Disability of a Participant, the Option shall become vested with respect to such additional Shares as would have
become vested had Participant remained in Service through the end of the calendar year in which the date of the death or Disability occurred. 

  

	 	E.	Change in Control. The Option shall become fully vested and exercisable immediately prior to a Change in Control. 

 2. Exercise of Option 
  

	 	A.	Notice of Exercise. The Participant or the Participant’s representative may exercise the Option, to the extent vested, by giving written notice to the Company, in
a form provided by the Committee, specifying the election to exercise the Option, the number of Shares for which it is being exercised and the form of payment. The notice of exercise shall be signed by the person exercising the Option. In the event
that the Option is being exercised by the Participant’s representative, the notice shall be accompanied by proof (satisfactory to the Committee) of the representative’s right to exercise the Option. The Participant or the
Participant’s representative shall deliver to the Committee, at the time of giving the notice, payment in a form permissible under Section 3 of this Agreement for the full amount of the Purchase Price. 

  

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	 	B.	Shareholders Agreement and Registration or Qualification of Shares. Notwithstanding any other provision of the Plan or this Agreement to the contrary, the Option may
not be exercised prior to (i) the Participant making or entering into such written representations, warranties and agreements as the Committee may request in order to comply with applicable securities laws, with this Agreement or otherwise and (ii)
the completion of any registration or qualification of the Option or the Shares under applicable state and Federal securities or other laws, or under any ruling or regulation of any governmental body or national securities exchange that the
Committee shall in its sole discretion determine to be necessary or advisable. 

  

	 	C.	Issuance of Common Stock. After satisfying all requirements with respect to the exercise of the Option, the Committee shall cause to be issued a certificate or
certificates for the Shares as to which the Option has been exercised, registered in the name of the person exercising the Option (or in the names of such person and his or her spouse as community property or as joint tenants with right of
survivorship). Neither the Company nor the Committee shall be liable to the Participant for damages relating to any delays in issuing the certificates to him, any loss of the certificates, or any mistakes or errors in the issuance of the
certificates or in the certificates themselves. 

  

	 	D.	Withholding Requirements. The Committee may withhold any tax (or other governmental obligation) as a result of the exercise of the Option, as a condition to the
exercise of the Option, and the Participant shall make arrangements satisfactory to the Committee to enable it to satisfy all such withholding requirements. 

 3. Payment for Shares 
  

	 	A.	Purchase Price. The purchase price of the Option shall be the Exercise Price multiplied by the number of Shares with respect to which the Option is being exercised
(the “Purchase Price”). 

  

	 	B.	Cash or Check. All or part of the Purchase Price may be paid in cash or by personal check. 

  

	 	C.	Other Methods of Payment for Shares. At the sole discretion of the Committee, all or any part of the Purchase Price and any applicable withholding requirements may be
paid by any other method permissible under the terms of the Plan and this Agreement. The Committee shall notify the Participant if and when it shall make such other payment method available to the Participant. Should the Committee exercise its
discretion to permit the Participant to exercise the Option in whole or in part in accordance with this Section 3C, it shall have no obligation to permit such alternative exercise with respect to the remainder of the Option or with respect to any
other option to purchase Shares held by the Participant. 

 4. Termination of Service 
  

	 	A.	Termination of Service. If a Participant’s Service terminates for any reason, then the exercise period for the Option shall expire on the earliest of the
following occasions: 

 (1) The expiration date determined pursuant to Section 1C above; 
  

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 (2) The date that is sixty (60) days after the termination of the Participant’s Service for
any reason other than death or Disability; 
 (3) The date that is six (6) months after the termination of the Participant’s
Service by reason of Disability; 
 (4) The date that is twelve (12) months after the termination of the Participant’s Service due
to the Participant’s death; or 
 (5) The date of termination of the Participant’s Service if such termination is for Cause.

 A Participant (or in the case of the Participant’s death or Disability, the Participant’s representative) may exercise all or
part of the Participant’s Option at any time before the expiration of such Option under the preceding sentence, but only to the extent that such Option has become vested pursuant to Section 1 of this Agreement on or before the date the
Participant’s Service terminates. The unvested balance of such Option shall lapse when the Participant’s Service terminates. 
  

	 	B.	Termination for Cause. The Participant’s Option (including any exercised Option for which Shares have not been delivered to the Participant) shall be cancelled
and forfeited immediately on the date of the Participant’s termination of Service for Cause or if Cause exists on such date. Should a Participant die at a time when Cause exists but prior to the date Participant’s Service is terminated for
Cause, all of the Participant’s Option (including any exercised Option for which Shares have not been delivered to the Participant) shall be cancelled and forfeited immediately as of the date of the Participant’s death.


  

	 	C.	Leaves of Absence. For any purpose under this Agreement, Service shall be deemed to continue while the Participant is on a bona fide leave of absence, if such leave
was approved by the Company in writing or if continued crediting of Service for such purpose is expressly required by the terms of such leave (as determined by the Committee) or by applicable law. 

 5. Transfer or Assignment of Option  
  

	 	A.	General. The Option shall be exercisable during the Participant’s lifetime, only by the Participant or by the Participant’s guardian or legal representative.
Except as otherwise provided in Section 5B below, the Option and the rights and privileges conferred hereby shall not be sold, pledged or otherwise transferred (whether by operation of law or otherwise) other than by beneficiary designation, will or
the laws of descent and distribution and shall not be subject to sale under execution, attachment, levy or similar process. 

  

	 	B.	Permitted Transfers. Subject to the approval of the Committee, the Participant shall be permitted to transfer the Option, in connection with his or her estate plan, to
the Participant’s spouse, siblings, parents, children and grandchildren or trusts for the benefit of such persons or partnerships, corporations, limited liability companies or other entities owned solely by such persons, including trusts for
such persons. 

  

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 6. Proscribed Conduct  
 Notwithstanding anything to the contrary set forth in the Plan or this Agreement, in the event a Participant engages in Proscribed Conduct, such Participant shall forfeit all vested and unvested portions of the
Option. 
 7. Adjustment Of Option 
 Any adjustments to the Option shall be made in accordance with the terms of the Plan. 
 8. Definitions 
  

	 	A.	“Cause” shall mean, unless otherwise defined in an employment agreement between the applicable Participant and the Company or any of its Subsidiaries, (i)
the Participant’s conviction of, or plea of guilty or nolo contendere to, a felony, or the Participant’s commission of an act of fraud or embezzlement against the Company or its affiliates; (ii) the Participant’s willful and material
breach of any employment agreement between the Company or any Subsidiary and the Participant that is economically harmful to the Company; (iii) the Participant’s willful misconduct that is economically injurious to the Company; (iv) the
Participant’s willful failure to follow the lawful directives of the Board; or (v) the Participant’s material failure or neglect to carry out his job functions (other than by reason of a physical or mental impairment), that continues after
the Participant has been provided with specific notice of such failure or neglect, and a reasonable opportunity to correct the same. For purposes hereof, no act, or failure to act, by the Participant shall be considered “willful” unless
committed in bad faith and without a reasonable belief that the act or omission was in the best interests of the Company or its Subsidiaries. 

  

	 	B.	“Change in Control” shall mean (i) a sale, merger or similar transaction or series of related transactions involving the Company or any of its Subsidiaries, as a
result of which those persons who held (either directly or indirectly) 100% of the voting power of the Company immediately prior to such transaction do not hold (either directly or indirectly) more than 50% of the voting power of the Company (or the
surviving or resulting entity thereof) after giving effect to such transaction or (ii) the sale of all or substantially all of the assets of the Company and its Subsidiaries, taken as a whole, in a transaction or series of related transactions, in
any case, other than to an entity of which more than 50% of the voting power is held (either directly or indirectly) by persons who held voting power of the Company immediately prior to such transaction. For the avoidance of doubt, an initial public
offering of the Shares shall not constitute a Change in Control. 

  

	 	C.	“Proscribed Conduct” shall mean a breach by a Participant of any restrictive covenants contained in any employment agreement between the Participant and the
Company or any Subsidiary, or if there are no such covenants or any such covenants are inapplicable for any reason, then “Proscribed Conduct” means, during the one-year period following termination of employment, a Participant’s (a)
unauthorized disclosure of confidential information relating to the Company or its Subsidiaries, (b) directly or indirectly engaging in, or owning or controlling any interest in, or acting as a director, officer or employer of, or consultant to or
otherwise be employed by any business engaged in the operation of convenience stores, wholesale fuel distribution or any other business conducted by the Company or any Subsidiary or 

  

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	 	  	affiliate in any county in which the Company operates on the date of such Participant’s termination of Service, (c) hiring, directly or indirectly, any individual who was
an employee of the Company or its Subsidiaries within the 12 month period prior to the date the Participant employs or seeks to employ such individual, or soliciting or inducing, directly or indirectly, any such individual to terminate his or her
employment with the Company or its Subsidiaries, or (d) causing, inducing or encouraging any actual or prospective client, customer, supplier, dealer or licensor of the Company or any other Person who has a business relationship with the
Company or any Subsidiary or Affiliate to terminate or modify any such actual or prospective relationship. 

  

	9.	Miscellaneous Provisions 

  

	 	A.	Rights as a Shareholder of the Company. Neither the Participant nor the Participant’s representative shall have any rights as a shareholder of the Company with
respect to any Shares subject to the Option until the Participant or the Participant’s representative becomes entitled to receive such Shares by (i) filing a notice of exercise, (ii) paying the Purchase Price as provided in this Agreement,
(iii) the Company issuing the Shares and entering the name of the Participant in the register of shareholders of the Company as the registered holder of such Shares, and (iv) and satisfying such other conditions as the Board or the Committee shall
reasonably require. 

  

	 	B.	No Right to Continued Employment. Nothing in this Agreement or the Plan shall confer upon the Participant any right to continue in Service for any period of specific
duration or interfere with or otherwise restrict in any way the rights of the Company (or any parent or Subsidiary employing or retaining the Participant) or of the Participant, which rights are hereby expressly reserved by each, to terminate his or
her Service at any time and for any reason, with or without cause. 

  

	 	C.	Legend on Certificates. The certificates representing the Shares purchased by exercise of the Option shall be subject to such stop transfer orders and other
restrictions as the Committee may deem advisable under the Plan or the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares are listed, and any applicable Federal or state
laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 

  

	 	D.	Notification. Any notification required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery or within three
(3) days of deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid. A notice shall be addressed to the Company at its principal executive office and to the Participant at the address that he or
she most recently provided to the Company. 

  

	 	E.	Entire Agreement. This Agreement and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof. They supersede any
other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the subject matter hereof, including, without limitation, the Amended and Restated Limited Liability Company Agreement of
Stripes Holdings LLC, dated as of December 21, 2005, as the same may be amended from time to time, the Stripes Holdings LLC Unit Option Plan and the Stripes Holdings Unit Option Plan Option Agreement. 

  

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	 	F.	Waiver. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition whether of like or
different nature. 

  

	 	G.	Restrictive Covenants. The Participant agrees and acknowledges that the provisions of Section 6 of this Agreement are reasonable and appropriate (including the
remedies set forth therein) and hereby covenants to comply with the requirements thereof. 

  

	 	H.	Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and upon the
Participant, the Participant’s assigns and the legal representatives, heirs and legatees of the Participant’s estate, whether or not any such person shall have become a party to this Agreement and have agreed in writing to be joined herein
and be bound by the terms hereof. 

  

	 	I.	Choice of Law. This Agreement shall be governed by, and construed in accordance with, the laws of Delaware, as such laws are applied to contracts entered into and
performed in such jurisdiction. 

  

	 	J.	Signature in Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and
hereto were upon the same instrument. 

  

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 The Participant, by signing below, acknowledges and agrees that this Option is granted under and governed by the terms of
the Susser Holdings Corporation 2006 Equity Incentive Plan, which is attached to and made a part of this document. 
  

							
	Participant	 		 	Susser Holdings Corporation
				
	  
	 		 	By:	 	  

		 		 	Title:	 	  


  

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 EXHIBIT A 
 SAMPLE NOTICE OF EXERCISE 
 Susser Holdings Corporation
 
 [Address]  
 Attn: Corporate
Secretary 
 To the Corporate Secretary: 
 I hereby exercise my
stock option granted under the Susser Holdings Corporation 2006 Equity Incentive Plan (the “Plan”) and notify you of my desire to purchase the shares of common stock of Susser Holdings Corporation (the “Shares”) that have been
offered pursuant to the Plan and related Agreement as described below. 
 I shall pay for the Shares by delivery of a check payable to the Company in the
amount described below in full payment for such Shares plus all amounts required to be withheld by the Company under state, Federal or local law as a result of such exercise or shall provide such documentation as is satisfactory to the Company
demonstrating that I am exempt from any withholding requirement. 
 This notice of exercise is delivered this      day of
                    (month)
                    (year). 
  

							
	 No. shares of Common
Stock to be Acquired
	  	 Type of Option
	  	 Exercise Price
	  	 Total

		  	Nonqualified Stock Option	  		  	
		  	Incentive Stock Option	  		  	
	 Estimated Withholding
	  	Nonqualified only	  		  	
		  		  		  	 
		  		  	Amount Paid	  	
		  		  		  	 

  

	
	Very truly yours,
	
	  

	Signature of Participant
	
	Participant Name and Mailing Address
	  

	  

	  

	
	Participant Social Security Number
	  



  

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