Document:

Exhibit 10.5

Exhibit 10.5

INTEGRA BANK CORPORATION

2007 EQUITY INCENTIVE PLAN

(As amended April 15, 2009)

1. Plan Purpose. The purpose of the Plan is to promote the long-term interests of the
Company and its shareholders by providing a means for attracting and retaining officers, directors
and key employees of the Company and its Affiliates.

2. Definitions. The following definitions are applicable to the Plan:

“Affiliate” means any “parent corporation” or “subsidiary corporation” of the Company
as such terms are defined in Code sections 424(e) and (f), respectively.

“Award” means the grant by the Committee of Incentive Stock Options, Non-Qualified
Stock Options, Restricted Shares, Performance Shares, Performance Units, Stock SARs or any
combination thereof, as provided in the Plan.

“Award Agreement” means the written agreement setting forth the terms and provisions
applicable to each Award granted under the Plan.

“Base Value” means, with respect to a Stock SAR, the Market Value of a Share on the
date of grant of the Stock SAR.

“Board” means the Board of Directors of the Company.

“Cause” means, in connection with a Participant’s termination of service, theft or
embezzlement from the Company or any Affiliate, violation of a material term or condition of
employment, disclosure of confidential information of the Company or any Affiliate, conviction of
the Participant of a crime of moral turpitude, stealing of trade secrets or intellectual property
owned by the Company or any Affiliate, any act by the Participant in competition with the Company
or any Affiliate, or any other act, activity or conduct of a Participant which in the opinion of
the Board is adverse to the best interests of the Company or any Affiliate.

“Change in Control” means each of the events set forth in any one of the following
paragraphs:

(i) The acquisition, within a 12-month period ending on the date of the most recent
acquisition, by any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (a
“Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act as in effect from time to time) of thirty-five percent (35%) or more of the
combined voting power of the then outstanding voting securities of the Company entitled to
vote generally in the election of directors; provided, however, that the following
acquisitions shall not constitute an acquisition of control: (A) any acquisition by a
Person who, immediately before the commencement of the 12-month period, already held
beneficial ownership of thirty-five percent (35%) or more of that combined voting power;
(B) any acquisition directly from the Company (excluding an acquisition by virtue of the
exercise of a conversion privilege), (C) any acquisition by the Company, (D) any acquisition
by any employee benefit plan (or related trust) sponsored or maintained by the Company or
any corporation controlled by the Company, or (E) any acquisition by any corporation
pursuant to a reorganization, merger or consolidation, if, following such reorganization,
merger or consolidation, the conditions described in clauses (A), (B) and (C) of
subsection (iii) of this definition are satisfied;

 

 

 

(ii) The replacement of a majority of members of the Company’s Board of Directors
during any 12-month period, by members whose appointment or election is not endorsed by a
majority of the members of the Company’s Board of Directors prior to the date of the
appointment or election;

(iii) A reorganization, merger or consolidation, in each case, unless, following such
reorganization, merger or consolidation, (A) more than sixty percent (60%) of, respectively,
the then outstanding shares of common stock of the corporation resulting from such
reorganization, merger or consolidation and the combined voting power of the then
outstanding voting securities of such corporation entitled to vote generally in the election
of directors is then beneficially owned, directly or indirectly, by all or substantially all
of the individuals and entities who were the beneficial owners, respectively, of the
outstanding Company common stock and outstanding Company voting securities immediately prior
to such reorganization, merger or consolidation in substantially the same proportions as
their ownership, immediately prior to such reorganization, merger or consolidation, of the
outstanding Company stock and outstanding Company voting securities, as the case may be,
(B) no Person (excluding the Company, any employee benefit plan or related trust of the
Company or such corporation resulting from such reorganization, merger or consolidation and
any Person beneficially owning, immediately prior to such reorganization, merger or
consolidation, directly or indirectly, twenty-five percent (25%) or more of the outstanding
Company common stock or outstanding voting securities, as the case may be) beneficially
owns, directly or indirectly, twenty-five percent (25%) or more of, respectively, the then
outstanding shares of common stock of the corporation resulting from such reorganization,
merger or consolidation or the combined voting power of the then outstanding voting
securities of such corporation entitled to vote generally in the election of directors and
(C) at least a majority of the members of the board of directors of the corporation
resulting from such reorganization, merger or consolidation were members of the Incumbent
Board at the time of the execution of the initial agreement providing for such
reorganization, merger or consolidation;

(iv) A complete liquidation or dissolution of the Company; or

(v) The sale or other disposition of all or substantially all of the assets of the
Company, other than any of the following dispositions: (A) to a corporation with respect to
which following such sale or other disposition (x) more than sixty percent (60%) of,
respectively, the then outstanding shares of common stock of such corporation and the
combined voting power of the then outstanding voting securities of such corporation entitled
to vote generally in the election of directors is then beneficially owned, directly or
indirectly, by all or substantially all of the individuals and entities who were the
beneficial owners, respectively, of the outstanding Company common stock and outstanding
Company voting securities immediately prior to such sale or other disposition in
substantially the same proportion as their ownership, immediately prior to such sale or
other disposition, of the outstanding Company common stock and outstanding Company voting
securities, as the case may be, (y) no Person (excluding the Company and any employee
benefit plan or related trust of the Company or such corporation and any Person beneficially
owning, immediately prior to such sale or other disposition, directly or indirectly,
twenty-five percent (25%) or more of the outstanding Company common stock or outstanding
Company voting securities, as the case may be) beneficially owns, directly or indirectly,
twenty-five percent (25%) or more of, respectively, the then outstanding shares of common
stock of such corporation and the combined voting power of the then outstanding voting
securities of such corporation entitled to vote generally in the election of directors and
(z) at least a majority of the members of the board of directors of such corporation were
members of the Incumbent Board at the time of the execution of the initial agreement or
action of the Board providing for such sale or other disposition of assets of the Company;
(B) to a shareholder of the Company in exchange for or with respect to its stock; (C) to a
Person that owns, directly or indirectly, fifty percent (50%) or more of the total value or
voting power of all outstanding stock of the Company; or (D) to an entity, at least fifty
percent (50%) or more of the total value or voting power of which is owned, directly or
directly, by the Company or by a Person described in (C).

Despite any other provision of this definition to the contrary, an occurrence shall not
constitute a Change in Control if it does not constitute a change in the ownership or
effective control, or in the ownership of a substantial portion of the assets of, the
Company within the meaning of Code Section 409A(a)(2)(A)(v) and its interpretive
regulations.

 

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“Code” means the Internal Revenue Code of 1986, as amended, and its interpretive
regulations.

“Committee” means the Compensation Committee appointed by the Board pursuant to
Section 3 of the Plan.

“Company” means Integra Bank Corporation, an Indiana corporation.

“Continuous Service” means, in the case of an Employee, the absence of any
interruption or termination of service as an Employee of the Company or an Affiliate; and in the
case of an individual who is not an Employee, the absence of any interruption or termination of the
service relationship between the individual and the Company or an Affiliate. Service will not be
considered interrupted in the case of sick leave, military leave or any other leave of absence
approved by the Company or in the case of a Participant’s transfer between the Company and an
Affiliate or any successor to the Company.

“Director” means any individual who is a member of the Board.

“Disability” means total and permanent disability as determined by the Committee
pursuant to Code section 22(e)(3).

“EBITDA” means earnings before interest, taxes, depreciation and amortization.

“Employee” means any person, including an officer, who is employed by the Company or
any Affiliate.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Exercise Price” means the price per Share at which the Shares subject to an Option
may be purchased upon exercise of the Option.

“Incentive Stock Option” means an option to purchase Shares granted by the Committee
pursuant to the terms of the Plan that is intended to qualify under Code section 422.

“Market Value” means the price at which the Shares were last sold on the date in
question (or, if there is no reported sale on such date, on the last preceding date on which any
reported sale occurred) of Shares on the Nasdaq Global Market, or, if the Shares are not listed on
the Nasdaq Global Market, on the principal exchange on which the Shares are listed for trading, or,
if the Shares are not then listed for trading on any exchange, the mean between the closing high
bid and low asked quotations of one Share on the date in question as reported by NASDAQ or any
similar system then in use, or, if no such quotations are available, the fair market value on such
date of one Share as the Committee shall determine.

“Non-Qualified Stock Option” means an option to purchase Shares granted by the
Committee pursuant to the terms of the Plan, which option is not intended to qualify under Code
section 422.

“Option” means an Incentive Stock Option or a Non-Qualified Stock Option.

“Participant” means any individual selected by the Committee to receive an Award.

“Performance Cycle” means the period of time, designated by the Committee, over which
the achievement of any Performance Goals are to be measured.

 

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“Performance Goals” means any one or more of the following financial criteria which
may be determined on a Company-wide, departmental, divisional or regional basis and which may be
measured by using average amounts for the criteria, in absolute terms, by reference to internal
targets or by comparison to a group of other companies designated by the Committee:

	 	•	 	Return on assets 

	 
	 	•	 	 Return on equity

	 
	 	•	 	Return on capital

	 
	 	•	 	Return on revenues

	 
	 	•	 	Cash return on tangible equity

	 
	 	•	 	Net income

	 
	 	•	 	Operating income

	 
	 	•	 	Efficiency ratio

	 
	 	•	 	Loan portfolio growth

	 
	 	•	 	Core deposit growth

	 
	 	•	 	Cash flow 

	 
	 	•	 	 Book value

	 
	 	•	 	Stock price performance

	 
	 	•	 	Earnings per share

	 
	 	•	 	Price earnings ratio

	 
	 	•	 	Credit quality

	 
	 	•	 	Net interest margin

	 
	 	•	 	Non-interest income

	 
	 	•	 	Core earnings

	 
	 	•	 	Total shareholder return

“Performance Shares” means Shares awarded pursuant to Section 13 of the Plan.

“Performance Unit” means an Award granted to a Participant pursuant to Section 13 of
the Plan.

“Plan” means the Integra Bank Corporation 2007 Equity Incentive Plan.

“Reorganization” means the liquidation or dissolution of the Company, or any merger,
consolidation or combination of the Company (other than a merger, consolidation or combination in
which the Company is the continuing entity and which does not result in the outstanding Shares
being converted into or exchanged for different securities, cash or other property or any
combination thereof).

“Restricted Period” means the period of time selected by the Committee for the purpose
of determining when restrictions are in effect under Section 12 of the Plan with respect to
Restricted Shares.

“Restricted Shares” means Shares that have been contingently awarded to a Participant
by the Committee subject to the restrictions referred to in Section 12 of the Plan, so long as such
restrictions are in effect.

“Retirement” means, in the case of an Employee, a termination of Continuous Service by
reason of the Employee’s retirement on or after the Employee’s 55th birthday if the
Employee has completed five years of Continuous Service.

“Securities Act” means the Securities Act of 1933, as amended.

“Shares” means the shares of common stock, no par value, of the Company.

“Stock SARs” means an Award granted pursuant to Section 14 of the Plan.

3. Administration; Performance Conditions. The Plan will be administered by the
Compensation Committee of the Board of Directors, which will consist of two or more members of the
Board, each of whom will be a “non-employee director” as provided under Rule 16b-3 of the Exchange
Act, and an “outside director” as provided under Code section 162(m). The members of the Committee
will be appointed by the Board. Except as limited by the express provisions of the Plan, the
Committee will have sole and complete authority and discretion to (a) select Participants and grant
Awards; (b) determine the number of Shares to be subject to types of Awards generally, as well as
to individual Awards granted under the Plan; (c) determine the terms and conditions upon which
Awards will be granted under the Plan; (d) prescribe the form and terms of Award Agreements;
(e) establish procedures and regulations for the administration of the Plan; (f) interpret the
Plan; and (g) make all determinations deemed necessary or advisable for the administration of the
Plan.

A majority of the Committee will constitute a quorum, and the acts of a majority of the
members present at any meeting at which a quorum is present, or acts approved in writing by all
members of the Committee without a meeting, will be acts of the Committee. All determinations and
decisions made by the Committee pursuant to the provisions of the Plan will be final, conclusive,
and binding on all persons, and will be given the maximum deference permitted by law.

 

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The Committee may delegate to one or more other directors of the Company, including directors
who do not qualify as “non-employee directors,” the authority, subject to such terms and
limitations as the Committee shall determine and guidelines set forth in Plan to grant Awards to,
or to cancel, modify, waive rights with respect to, alter, discontinue, suspend or terminate Awards
held by, Employees who are not officers or directors of the Company for purposes of Section 16 of
the Exchange Act; provided, however, that any delegation shall conform with the requirements of
applicable law and with the requirements, if any, of the National Association of Securities
Dealers, Inc. or any exchange on which the Company’s Shares may be traded.

The Committee may condition any Award, other than an Award of Incentive Stock Options, upon
the achievement of any one or more of the Performance Goals measured over a Performance Cycle
designated by the Committee.

4. Participants. The Committee may select from time to time Participants in the Plan
from those officers, Directors, and Employees of the Company or its Affiliates who, in the opinion
of the Committee, have the capacity for contributing in a substantial measure to the successful
performance of the Company or its Affiliates.

5. Substitute Options. In the event the Company or an Affiliate consummates a
transaction described in Code Section 424(a), persons who become Employees or Directors on account
of such transaction may be granted Options in substitution for Options granted by the former
employer. The Committee, in its sole discretion and consistent with Code Section 424(a) shall
determine the Exercise Price of the substitute Options, but in no event shall the Exercise Price of
the substitute Options be lower than the Market Value, as of the date that the substitute Options
are granted, of the Shares that may be purchased pursuant to the substitute Options.

6. Shares Subject to Plan, Limitations on Grants and Exercise Price. Subject to
adjustment by the operation of Section 16 hereof:

(a) The maximum number of Shares that may be issued with respect to Awards made
under the Plan is 1,000,000 Shares, no more than 100,000 of which may be issued
pursuant to Awards granted in the form of Incentive Stock Options. The number of
Shares that may be granted under the Plan to any Participant during any year under
all forms of Awards will not exceed 200,000 Shares.

(b) The Shares with respect to which Awards may be made under the Plan may
either be authorized and unissued Shares or issued Shares heretofore or hereafter
reacquired and held as treasury Shares. Any Award that expires, terminates or is
surrendered for cancellation, or with respect to Restricted Shares, which is
forfeited (so long as any cash dividends paid on such Shares are also forfeited),
may be subject to new Awards under the Plan with respect to the number of Shares as
to which a termination or forfeiture has occurred. Additionally, Shares that are
withheld by the Company or delivered by the Participant to the Company in order to
satisfy payment of the Exercise Price or any tax withholding obligation and Shares
granted pursuant to an Award Agreement which is subsequently settled in cash rather
than Shares, may be subject to new Awards under the Plan.

(c) Notwithstanding any other provision under the Plan, the Exercise Price for
any Incentive Stock Option awarded under the Plan may not be less than the Market
Value of the Shares.

(d) In connection with the granting of an Award, the number of Shares available
for issuance under this Plan shall be reduced by the number of Shares in respect of
which the Award is granted or denominated; provided, however, that, with respect to
a Stock SAR, the number of Shares available for issuance under this Plan shall be
reduced only by the number of Shares issued in settlement.

 

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(e) If any Option is exercised by tendering previously acquired Shares to the
Company as full or partial payment of the Exercise Price, the number of Shares
available for issuance under this Plan shall be increased by the number of Shares so
tendered.

(f) Whenever any outstanding other Award (or portion thereof) shall expire,
lapse, be cancelled, or is otherwise terminated for any reason, without having been
exercised or payment having been made in respect of the entire Award, the Shares
allocable to the expired, lapsed, cancelled, settled or otherwise terminated portion
of the Award may again be the subject of other Awards granted under this Plan.

7. General Terms and Conditions of Options.

(a) The Committee will have full and complete authority and discretion, except
as expressly limited by the Plan, to grant Options and to prescribe the terms and
conditions (which need not be identical among Participants) of the Options;
provided, however, that the Committee shall not enter into any Award Agreement that
includes terms or conditions that would subject the Participant to gross income
inclusion, interest, or additional tax pursuant to Code Section 409A. Each Option
will be evidenced by an Award Agreement that will specify: (i) the Exercise Price,
(ii) the number of Shares subject to the Option, (iii) the expiration date of the
Option, (iv) the manner, time and rate (cumulative or otherwise) of exercise of the
Option, (v) the restrictions, if any, to be placed upon the Option or upon Shares
that may be issued upon exercise of the Option, (vi) the conditions, if any, under
which a Participant may transfer or assign Options, and (vii) any other terms and
conditions as the Committee, in its sole discretion, may determine.

(b) The Committee shall not, without the further approval of the shareholders
of the Company, authorize the amendment of any outstanding Option Award Agreement to
reduce the Exercise Price. Furthermore, no Option shall be cancelled and replaced
with an Option having a lower Exercise Price without further approval of the
shareholders of the Company.

8. Exercise of Options. 

(a) Except as provided in Section 18, an Option granted under the Plan will be
exercisable only by the Participant, and except as provided in Section 9 of the
Plan, no Option may be exercised unless at the time the Participant exercises the
Option, the Participant has maintained Continuous Service since the date of the
grant of the Option.

(b) To exercise an Option under the Plan, the Participant must give written
notice to the Company specifying the number of Shares with respect to which the
Participant elects to exercise the Option together with full payment of the Exercise
Price. The date of exercise will be the date on which the notice is received by the
Company. Payment may be made either (i) in cash (including check, bank draft or
money order), (ii) by tendering Shares already owned by the Participant for at least
six (6) months prior to the date of exercise and having a Market Value on the date
of exercise equal to the Exercise Price, (iii) through the delivery of a notice that
the Participant has placed a market sell order with a broker with respect to Shares
issuable upon exercise of the Option and the broker has been directed to pay a
sufficient portion of the net proceeds of the sale to the Company to cover the
Exercise Price, or (iv) by any other means determined by the Committee in its sole
discretion.

 

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9. Termination of Options. Unless otherwise specifically provided elsewhere in the
Plan or by the Committee in the Award Agreement or any amendment thereto, Options will terminate as
provided in this Section.

(a) Unless sooner terminated under the provisions of this Section, Options will
expire on the earlier of the date specified in the Award Agreement or the expiration
of ten (10) years from the date of grant.

(b) If the Continuous Service of a Participant is terminated for reason of
Retirement, the Participant may exercise all Options that are vested or that vest in
full within the period of thirty-six months (36) months immediately succeeding the
Participant’s Retirement. Any unvested Options remaining at the end of the 36-month
post-retirement period will be forfeited by the Participant.

(c) If the Continuous Service of a Participant is terminated for Cause, all
rights under any Options granted to the Participant will terminate immediately upon
the Participant’s cessation of Continuous Service, and the Participant will (unless
the Committee, in its sole discretion, waives this requirement) repay to the Company
within ten (10) days the amount of any gain realized by the Participant upon any
exercise of an Option, awarded under the Plan, within the 90-day period prior to the
cessation of Continuous Service.

(d) If the Continuous Service of a Participant is terminated voluntarily by the
Participant for any reason other than death, Disability, or Retirement, the
Participant may exercise outstanding Options to the extent that the Participant was
entitled to exercise the Options at the date of cessation of Continuous Service, but
only within the period of three (3) months immediately succeeding the Participant’s
cessation of Continuous Service, and in no event after the applicable expiration
dates of the Options.

(e) If the Continuous Service of a Participant is terminated by the Company
without Cause, the Participant may exercise outstanding Options to the extent that
the Participant was entitled to exercise the Options at the date of cessation of
Continuous Service, but only within the period of three (3) months immediately
succeeding the Participant’s cessation of Continuous Service, and in no event after
the applicable expiration dates of the Options; provided, however, that if a
Participant is terminated by the Company without Cause within twelve months after a
Change in Control, such Participant may exercise outstanding Options to the extent
he or she was entitled to exercise the Options at the date of cessation of
Continuous Service, within the period of one (1) year immediately succeeding the
cessation of Continuous Service but in no event after the applicable expiration
dates of the Options.

(f) In the event of the Participant’s death or Disability, all Options
heretofore granted and not fully exercisable will become exercisable in full and the
Participant or the Participant’s beneficiary, as the case may be, may exercise such
Options within the period of one (1) year immediately succeeding the Participant’s
cessation of Continuous Service by reason of death or Disability, and in no event
after the applicable expiration date of the Options.

(g) Notwithstanding the provisions of the foregoing paragraphs of this Section
9, the Committee may, in its sole discretion, establish different terms and
conditions pertaining to the effect of the cessation of Continuous Service, to the
extent permitted by applicable federal and state law. Additionally, notwithstanding
the provisions of the foregoing paragraphs of this Section 9, the Committee may, in
its sole discretion, allow the exercise of an expired Option if the Committee
determines that: (i) the expiration was solely the result of the Company’s inability
to execute the exercise of an Option due to conditions beyond the Company’s control,
and (ii) the Participant made valid and reasonable efforts to exercise the Award.
In the event the Committee makes such a determination, the Company shall allow the
exercise to occur as promptly as possible following its receipt of exercise
instructions subsequent to such determination.

 

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10. Restrictive Covenants. In its discretion, the Committee may condition the grant
of any Option under the Plan upon the Participant agreeing to reasonable covenants in favor of the
Company and/or any Affiliate (including, without limitation, covenants not to compete, not to
solicit employees and customers, and not to disclose confidential information) that may have effect
following the termination of employment with the Company or any Affiliate, and after the Option has
been exercised, including, without limitation, the requirement to disgorge any profit, gain or
other benefit received upon exercise of the Option prior to any breach of any covenant.

11. Incentive Stock Options.

(a) Incentive Stock Options may be granted only to Participants who are
Employees. Any provisions of the Plan to the contrary notwithstanding, (i) no
Incentive Stock Option will be granted more than ten (10) years from the earlier of
the date the Plan is adopted by the Board of Directors of the Company or approved by
the Company’s shareholders, (ii) no Incentive Stock Option will be exercisable more
than ten (10) years from the date the Incentive Stock Option is granted, (iii) the
Exercise Price of any Incentive Stock Option will not be less than the Market Value
per Share on the date such Incentive Stock Option is granted, (iv) any Incentive
Stock Option will not be transferable by the Participant to whom such Incentive
Stock Option is granted other than by will or the laws of descent and distribution
and will be exercisable during the Participant’s lifetime only by such Participant,
(v) no Incentive Stock Option will be granted that would permit a Participant to
acquire, through the exercise of Incentive Stock Options in any calendar year, under
all plans of the Company and its Affiliates, Shares having an aggregate Market Value
(determined as of the time any Incentive Stock Option is granted) in excess of
$100,000 (determined by assuming that the Participant will exercise each Incentive
Stock Option on the date that such Option first becomes exercisable), and (vi) no
Incentive Stock Option may be exercised more than three (3) months after the
Participant’s cessation of Continuous Service (one (1) year in the case of
Disability) for any reason other than death. Notwithstanding the foregoing, in the
case of any Participant who, at the date of grant, owns shares possessing more than
10% of the total combined voting power of all classes of capital stock of the
Company or any Affiliate, the Exercise Price of any Incentive Stock Option will not
be less than 110% of the Market Value per Share on the date such Incentive Stock
Option is granted and such Incentive Stock Option shall not be exercisable more than
five years from the date such Incentive Stock Option is granted.

(b) Notwithstanding any other provisions of the Plan, if for any reason an
Option granted under the Plan that is intended to be an Incentive Stock Option fails
to qualify as an Incentive Stock Option, such Option will be deemed to be a
Non-Qualified Stock Option, and such Option will be deemed to be fully authorized
and validly issued under the Plan.

12. Terms and Conditions of Restricted Shares. The Committee will have full and
complete authority, subject to the limitations of the Plan, to grant Awards of Restricted Shares
and to prescribe the terms and conditions (which need not be identical among Participants) in
respect of the Awards. Unless the Committee otherwise specifically provides in the Award
Agreement, an Award of Restricted Shares will be subject to the following provisions:

(a) At the time of an Award of Restricted Shares, the Committee will establish
for each Participant a Restricted Period during which, or at the expiration of
which, the Restricted Shares will vest. Subject to paragraph (e) of this Section,
the Participant will have all the rights of a shareholder with respect to the
Restricted Shares, including, but not limited to, the right to receive all dividends
paid on the Restricted Shares and the right to vote the Restricted Shares. The
Committee will have the authority, in its discretion, to accelerate the time at
which any or all of the restrictions will lapse with respect to any Restricted
Shares prior to the expiration of the Restricted Period, or to remove any or all
restrictions, whenever it may determine that such action is appropriate by reason of
changes in applicable tax or other laws or other changes in circumstances occurring
after the commencement of the Restricted Period.

(b) Subject to Section 17, if a Participant ceases Continuous Service for any
reason other than death or disability, before the Restricted Shares have vested, a
Participant’s rights with respect to the unvested portion of the Restricted Shares
will terminate and be returned to the Company.

(c) Subject to Section 17, if a Participant ceases Continuous Service by reason
of death or Disability before any Restricted Period has expired, the Restricted
Shares will become fully vested.

 

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(d) Each certificate issued in respect to Restricted Shares will be registered
in the name of the Participant and deposited by the Participant, together with a
stock power endorsed in blank, with the Company and will bear the following (or a
similar) legend:

“The transferability of this certificate and the shares
represented hereby are subject to the terms and conditions
(including forfeiture) contained in the Integra Bank
Corporation 2007 Equity Incentive Plan, and an Award
Agreement entered into between the registered owner and
Integra Bank Corporation. Copies of the Plan and Award
Agreement are on file in the office of the Secretary of
Integra Bank Corporation.”

(e) At the time of an Award of Restricted Shares, the Participant will enter
into an Award Agreement with the Company in a form specified by the Committee
agreeing to the terms and conditions of the Award.

(f) At the time of an Award of Restricted Shares, the Committee may, in its
discretion, determine that the payment to the Participant of dividends declared or
paid on the Restricted Shares by the Company, or a specified portion thereof, will
be deferred until the earlier to occur of (i) the lapsing of the restrictions
imposed with respect to the Restricted Shares, or (ii) the forfeiture of such
Restricted Shares under paragraph (b) of this Section, and will be held by the
Company for the account of the Participant until such time. In the event of
deferral, there will be credited at the end of each year (or portion thereof)
interest on the amount of the account at the beginning of the year at a rate per
annum as the Committee, in its discretion, may determine. Payment of deferred
dividends, together with accrued interest, will be made upon the earlier to occur of
the events specified in (i) and (ii) of this paragraph. The Committee’s authority,
however, to accelerate the lapse of restrictions or to remove restrictions on
Restricted Shares, pursuant to paragraph (a) of this Section, shall not apply to
accelerate the payment of any deferred dividends on the Restricted Shares.

(g) At the expiration of the restrictions imposed by this Section, the Company
will redeliver to the Participant the certificate(s) and stock powers, deposited
with the Company pursuant to paragraph (c) of this Section and the Shares
represented by the certificate(s) will be free of all restrictions.

(h) No Award of Restricted Shares may be assigned, transferred or encumbered.

13. Performance Shares and Performance Units.

(a) The Committee, in its sole discretion, may from time to time authorize the
grant of Performance Shares and Performance Units upon the achievement of
performance goals (which may be cumulative and/or alternative) within a designated
Performance Cycle as may be established, in writing, by the Committee based on any
one or any combination of the Performance Goals.

(b) In the case of Performance Units, the Committee shall determine the value
of Performance Units under each Award.

(c) As determined in the discretion of the Committee, performance goals may
differ among Participants and/or relate to performance on a Company-wide or
divisional basis.

(d) At such time as it is certified, in writing, by the Committee that the
Performance Goals established by the Committee have been attained or otherwise
satisfied within the Performance Cycle, the Committee will authorize the payment of
Performance Shares or Performance Units in the form of cash or Shares registered in
the name of the Participant, or a combination of cash and Shares, equal to the value
of the Performance Shares or Performance
Units at the end of the Performance Cycle. Payment shall be made in a lump sum
no later than the 15th day of the third month following the end of the calendar year
in which the applicable Performance Cycle ends.

 

9

 

(e) The grant of an Award of Performance Shares or Performance Units will be
evidenced by an Award Agreement containing the terms and conditions of the Award as
determined by the Committee. To the extent required under Code section 162(m), the
business criteria under which Performance Goals are determined by the Committee will
be resubmitted to shareholders for reapproval no later than the first shareholder
meeting that occurs in the fifth year following the year in which shareholders
previously approved the Plan.

(f) Subject to Section 17, if the Participant ceases Continuous Service before
the end of a Performance Cycle for any reason other than Disability or death, the
Participant will forfeit all rights with respect to any Performance Shares or
Performance Units that were being earned during the Performance Cycle. The
Committee, in its sole discretion, may establish guidelines providing that if a
Participant ceases Continuous Service before the end of a Performance Cycle by
reason of Disability or death, the Participant will be entitled to a prorated
payment with respect to any Performance Shares or Performance Units that were being
earned during the Performance Cycle.

14. Stock SARs.

(a) The Committee may, from time to time, authorize the grant of stock
appreciation rights that are denominated or payable in, valued in whole or in part
by reference to, or otherwise based on or related to, Shares (including, without
limitation, securities convertible into Shares) as are deemed by the Committee to be
consistent with the purposes of the Plan (“Stock SARs”). Subject to the terms of
the Plan, the Committee shall determine the terms and conditions of such Awards.

(b) Upon exercise of vested Stock SARs, the following procedure will govern the
determination of the number of Shares that settle the exercise of the Award:

(i) The number of Stock SARs exercised is multiplied by the dollar amount by
which the Market Value of a Share of common stock on the date of exercise exceeds
the Base Value of a Share.

(ii) A portion of the dollar amount calculated in Section 14(b)(i) is withheld
for income tax purposes; the amount to be determined by the Committee consistent
with federal and state income tax withholding guidelines.

(iii) The dollar amount remaining after the calculation in Section 14(b)(ii) is
divided by the Market Value of a Share on the date of exercise to determine the
number of Shares delivered to the Participant to settle the exercise of the Stock
SARs. Such delivery of Shares will always be denominated in whole shares. The
dollar value of any fractional Share resulting from the previous calculations is
distributed to the Participant in the form of cash.

(c) Unless otherwise specifically provided elsewhere in the Plan or by the
Committee in the Award Agreement or any amendment thereto, Stock SARs will terminate
at the same times and upon the same terms and conditions as are provided for Options
under Section 9.

15. Adjustments Upon Changes in Capitalization. In the event of any change in the
outstanding Shares subsequent to the effective date of the Plan by reason of any reorganization,
recapitalization, stock split, stock dividend, combination or exchange of shares, merger,
consolidation or any change in the corporate structure or Shares of the Company, the maximum
aggregate number and class of Shares as to which Awards may be granted under the Plan and the
number and class of Shares, and the exercise price of Options and Base Value of
Stock SARs, with respect to which Awards theretofore have been granted under the Plan will be
appropriately adjusted by the Committee to prevent the dilution or diminution of Awards. The
Committee’s determination with respect to any adjustments will be conclusive. Any Shares or other
securities received, as a result of any of the foregoing, by a Participant with respect to
Restricted Shares will be subject to the same restrictions and the certificate(s) or other
instruments representing or evidencing the Shares or other securities will be legended and
deposited with the Company in the manner provided in Section 12 of this Agreement.

 

10

 

16. Effect of Reorganization. Unless otherwise provided by the Committee in the Award
Agreement, Awards will be affected by a Reorganization as follows:

(a) If the Reorganization is a dissolution or liquidation of the Company then
(i) the restrictions on Restricted Shares will lapse and (ii) each outstanding
Option and Stock SAR Award will terminate, but each Participant to whom the Award
was granted will have the right, immediately prior to the dissolution or
liquidation, to exercise the Option or Stock SAR in full, notwithstanding the
provisions of Section 11, and the Company will notify each Participant of such right
within a reasonable period of time prior to any dissolution or liquidation.

(b) If the Reorganization is a merger or consolidation, upon the effective date
of the Reorganization (i) each Participant will be entitled, upon exercise of an
Option or Stock SAR in accordance with all of the terms and conditions of the Plan,
to receive in lieu of Shares, shares or other securities or consideration as the
holders of Shares are entitled to receive pursuant to the terms of the
Reorganization; and (ii) each holder of Restricted Shares will be entitled to
receive shares or other securities as the holders of Shares received which will be
subject to the restrictions set forth in Section 12 (unless the Committee
accelerates the lapse of such restrictions) and the certificate(s) or other
instruments representing or evidencing the shares or other securities shall be
legended and deposited with the Company in the manner provided in Section 12 of this
Plan.

The adjustments contained in this Section and the manner of application of such provisions
will be determined solely by the Committee.

17. Effect of Change of Control.

(a) If the Continuous Service of any Participant of the Company or any
Affiliate is involuntarily terminated, for whatever reason, at any time within
twelve (12) months after a Change in Control, unless the Committee has otherwise
provided in the Award Agreement, (i) any Restricted Period with respect to an Award
of Restricted Shares will lapse upon the Participant’s termination of Continuous
Service and all Restricted Shares will become fully vested in the Participant to
whom the Award was made; and (ii) with respect to Performance Shares and Performance
Units, the Participant will be entitled to receive a prorata payment to the same
extent as if the Participant ceases Continuous Service by reason of death or
Disability under Section 13 of the Plan.

(b) If a tender offer or exchange offer for Shares (other than such an offer by
the Company) is commenced, or if a Change in Control occurs, unless the Committee
has otherwise provided in the Award Agreement, all Option and Stock SAR Awards
theretofore granted and not fully exercisable will become exercisable in full upon
the happening of such event and will remain exercisable in accordance with their
terms; provided, however, that no Options or Stock SARs which have previously been
exercised or otherwise terminated will become exercisable.

18. Assignments and Transfers. No Award nor any right or interest of a Participant in
any Award under the Plan may be assigned, encumbered or transferred otherwise than by will or the
laws of descent and distribution. Notwithstanding the foregoing, the Committee may, in its sole
discretion, set forth in an Award Agreement at the time of grant or thereafter, that the Award
(other than Incentive Stock Options) may be transferred to members of the Participant’s immediate
family, to one or more trusts solely for the benefit of such immediate family members and to
partnerships in which such family members or trusts are the only partners. For this purpose,
immediate family means the Participant’s spouse, parents, children, step-children, grandchildren
and legal dependents. Any transfer of an Award under this provision will not be effective until notice
of such transfer is delivered to the Company.

 

11

 

19. Employee Rights Under the Plan. No officer, Director, Employee or other person
will have a right to be selected as a Participant nor, having been so selected, to be selected
again as a Participant, and no officer, Director, Employee or other person will have any claim or
right to be granted an Award under the Plan or under any other incentive or similar plan of the
Company or any Affiliate. Neither the Plan nor any action taken under the Plan will be construed
as giving any Employee any right to be retained in the employ of the Company or any Affiliate.

20. Delivery and Registration of Shares. The Company’s obligation to deliver Shares
with respect to an Award will, if the Committee requests, be conditioned upon the receipt of a
representation as to the investment intention of the Participant to whom such Shares are to be
delivered, in such form as the Committee will determine to be necessary or advisable to comply with
the provisions of the Securities Act or any other applicable federal or state securities laws. It
may be provided that any representation requirement will become inoperative upon a registration of
the Shares or other action eliminating the necessity of the representation under the Securities Act
or other state securities laws. The Company will not be required to deliver any Shares under the
Plan prior to (a) the admission of such Shares to listing on any stock exchange or system on which
Shares may then be listed, and (b) the completion of any registration or other qualification of the
Shares under any state or federal law, rule or regulation, as the Company determines to be
necessary or advisable.

21. Withholding Tax. Prior to the delivery of any Shares or cash pursuant to an
Award, the Company has the right and power to deduct or withhold, or require the Participant to
remit to the Company, an amount sufficient to satisfy all applicable tax withholding requirements.
The Committee, in its sole discretion and pursuant to such procedures as it may specify from time
to time, may permit or require a Participant to satisfy all or part of the tax withholding
obligations in connection with an Award by (a) having the Company withhold otherwise deliverable
Shares, or (b) delivering to the Company Shares already owned for a period of at least six months
and having a value equal to the amount required to be withheld. The amount of the withholding
requirement will be deemed to include any amount that the Committee determines, not to exceed the
amount determined by using the maximum federal, state or local marginal income tax rates applicable
to the Participant with respect to the Award on the date that the amount of tax to be withheld is
to be determined for these purposes. For these purposes, the value of the Shares to be withheld or
delivered will be equal to the Market Value as of the date that the taxes are required to be
withheld.

22. Deferrals. Notwithstanding any other provision of the Plan, the Committee may
permit (upon timely election by the Participant) or require a Participant to defer such
Participant’s receipt of the payment of cash or the delivery of Shares that would otherwise be due
to such Participant by virtue of the lapse or waiver of restrictions with respect to Restricted
Shares, or the satisfaction of any requirements or goals with respect to Performance Units or
Performance Shares. If any such deferral election is required or permitted, the Committee shall
establish rules and procedures for such payment deferrals that satisfy the applicable standards for
nonqualified deferred compensation plans established by Code Section 409A and its interpretive
regulations and other regulatory guidance.

23. Termination, Amendment and Modification of Plan. The Board may at any time
terminate, and may at any time and from time to time and in any respect amend or modify the Plan;
provided, however, that to the extent necessary and desirable to comply with Rule 16b-3 under the
Exchange Act or Code section 422 (or any other applicable law or regulation, including requirements
of any stock exchange or quotation system on which the Company’s common stock is listed or quoted),
shareholder approval of any Plan amendment will be obtained in the manner and to the degree as is
required by the applicable law or regulation; and provided further, that no termination, amendment
or modification of the Plan will in any manner affect any Award theretofore granted pursuant to the
Plan without the consent of the Participant to whom the Award was granted or the transferee of the
Award.

24. Effective Date and Term of Plan. The Plan will become effective upon its adoption
by the Board of Directors and shareholders of the Company. Unless sooner terminated pursuant to
Section 22, no further Awards may be made under the Plan after April 18, 2017.

 

12

 

25. Code Section 409A.

(a) If as of the date his employment terminates, a Participant is a “key
employee” within the meaning of Code Section 416(i), without regard to paragraph
416(i)(5) thereof, and if the Company has stock that is publicly traded on an
established securities market or otherwise, any deferred compensation payments
otherwise payable under this Plan because of his termination of Continuous Service
(for reasons other than death or Disability) will be suspended until, and will be
paid to the Participant on, the first day of the seventh month following the month
in which the Participant’s last day of employment occurs. For purposes of this
Plan, “deferred compensation” means compensation provided under a nonqualified
deferred compensation plan as defined in, and subject to, Code Section 409A.

(b) The Plan and Award Agreements shall be interpreted and applied in a manner
consistent with the applicable standards for nonqualified deferred compensation
plans established by Code Section 409A and its interpretive regulations and other
regulatory guidance. To the extent that any terms of the Plan or an Award Agreement
would subject the Participant to gross income inclusion, interest, or additional tax
pursuant to Code Section 409A, those terms are to that extent superseded by, and
shall be adjusted to the minimum extent necessary to satisfy, the applicable Code
Section 409A standards.

26. Governing Law. Except as provided in Section 25, the Plan and Award Agreements
will be construed in accordance with and governed by the internal laws of the State of Indiana.
The Committee may provide that any dispute as to any Award shall be presented and determined in
such forum as the Committee may specify, including through binding arbitration.

27. Repricing of Options. Nothing in this Plan shall permit the repricing of any
outstanding options other than (a) with the prior approval of the Company’s shareholders, or (b)
pursuant to Sections 15 and 16. The foregoing restriction shall also apply to any other
transaction which would be treated as a repricing of outstanding options under generally accepted
accounting principles.

28. Prior Plans. Following the effective date of this Plan, the Company shall not
make any additional awards under the Integra Bank Corporation 2003 Stock Option and Incentive Plan
or the Integra Bank Corporation 1999 Stock Option and Incentive Plan.

 

13Exhibit 10.1

EXHIBIT 10.1

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

THIS AGREEMENT, dated as of February 25, 2009, by and between Suburban Propane, L.P. (the
“Partnership”) and Mark A. Alexander (the “Executive”).

WHEREAS, the Partnership desires to retain the services of the Executive and the Executive
desires to perform services for the Partnership, in each case, upon the terms and conditions set
forth herein; and

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, November 2, 2005 and November 13, 2008 (collectively, the “Previous
Agreement”), and

WHEREAS, the Executive is currently the Chief Executive Officer of the Partnership and desires
to continue in such position;

WHEREAS, the Partnership desires to continue to employ the Executive as Chief Executive
Officer;

WHEREAS, the Parties desire to amend and restate the Previous Agreement to the extent
necessary to cause the definition of a Change of Control to be consistent with the definitions used
in other compensation plans maintained by the Partnership.

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

1. Term

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. Duties and Status

2.1 Duties. The Partnership hereby employs the Chief Executive Officer of the Partnership. The
Executive shall also serve (without compensation) as Chief Executive Officer of Suburban Propane
Partners, L.P. (the “MLP”). If requested to do so, the Executive shall serve (without additional
compensation) on the board of supervisors of the Partnership and the board of supervisors of the
MLP (the “Board”) and committees thereof. The Executive accepts such positions and agrees to
perform those duties, services and responsibilities incident thereto as may be assigned to him or
vested in him by the Board from time to time. The Executive also agrees (a) to devote his full
business time, attention and skill to the performance of, and to perform faithfully, efficiently
and with undivided loyalty, such duties, services and responsibilities and (b) to use his best
efforts to promote the interests of the Partnership and the MLP.

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.

 

 

 

3. Compensation and Benefits

In consideration for his services under this Agreement, the Executive shall be compensated as
follows:

3.1 Salary. The Partnership shall pay to the Executive during the Employment Term a salary
(the “Base Salary”), payable in accordance with the normal payroll practices of the Partnership
then in effect, in the amount of $450,000 per fiscal year (pro rated in the case of the first
fiscal year and any other partial fiscal year). The amount of Base Salary shall be reviewed by the
Partnership on at least an annual basis and may be increased as the Partnership deems appropriate
but Base Salary, as increased, may not be decreased during the Employment Term.

3.2 Bonuses. For each fiscal year (or portion thereof) of the Partnership during the
Employment Term, the Executive will be eligible for a bonus based on the attainment by the
Partnership of performance targets set by the compensation committee of the Board (the
“Compensation Committee”). The amount of such bonus for a fiscal year or portion thereof (the
“Annual Bonus”) payable pursuant to the terms hereof shall not exceed 100% of the Executive’s Base
Salary for such year (or portion thereof) to which it relates (the “Maximum Annual Bonus”). If the
Executive’s Base Salary is changed during any fiscal year, the Maximum Annual Bonus for such year
shall be pro rated to reflect the Executive’s actual base salary during such year. The Compensation
Committee shall meet within two months after the end of a performance period to certify whether a
performance target has been satisfied. If the Compensation Committee so certifies, the Partnership
will pay to the Executive the Annual Bonus (subject to applicable withholding taxes). Prior to the
beginning of each fiscal year, the Compensation Committee will meet to set performance targets for
the next fiscal year and the Executive will receive an Annual Bonus with respect to future periods
according to the aforementioned guidelines. Any Annual Bonus under this Section 3.2 shall be paid
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 payable (the
exact payment date to be determined by the Company).

3.3 Long-Term Incentive Compensation Programs. The Executive shall be eligible to participate
in long-term incentive compensation programs (including the 2000 Restricted Unit Plan and the 2003
Long-Term Incentive Plan) applicable to other senior executives of the Partnership in the
discretion of the Compensation Committee from time to time.

3.4 Vacation. The Executive shall be entitled to such number of annual paid vacation days and
the number of days of paid holidays, leaves of absence, and leaves for illness or temporary
disability as may he provided in the policies of the Partnership in respect of other executives and
senior managers of the Partnership, but in no event shall the Executive be entitled to less than
four weeks vacation per year.

3.5 Reimbursement of Expenses. The Executive shall be entitled to receive reimbursement of all
reasonable expenses incurred by him in connection with the performance of his duties hereunder, in
accordance with the policies and procedures of the Partnership.

3.6 Benefits. The Executive shall be entitled to participate in employee benefit and fringe
benefit plans and programs (including life, health, disability and officer indemnity insurance and
retirement plans) generally made available to other senior executives and senior managers by the
Partnership. Nothing in this Agreement shall restrict the right of the Partnership to amend, modify
or terminate any such plans or programs. Without duplication of any benefits received by the
Executive pursuant to the first sentence of this Section 3.6:

(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 Hanson 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 Hanson America Inc.

4. Non-Competition; Confidential Information

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:

4.1 Non-Competition.

(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.

4.2 Proprietary Information. The Executive shall keep confidential any and all “confidential
or proprietary information” (as defined hereinafter) of the Partnership and its affiliates, and
shall not, other than in connection with the business of the Partnership and the MLP or as
required, in the opinion of counsel, by law or an order of a court or regulatory agency, directly
or indirectly, disclose any such information to any person or entity, or use the same in any way
and then, only after as much notice is provided to the Partnership as is practicable under the
circumstances. Upon the expiration of the Employment Term, the Executive shall promptly return to
the Partnership all property, keys, notes, memoranda, writings, lists (including customer lists),
files, reports, correspondence, logs, machines, software, technical data or any other tangible
product or document which has been produced by, received by, or otherwise submitted to the
Executive by the Partnership or any of its affiliates at any time. For purposes of this Agreement,
“confidential or proprietary information” means any information relating to the Partnership or any
affiliate of the Partnership which is not generally available from sources outside the Partnership
or any of its affiliates (other than as a result of disclosure by the Executive).

4.3 Company’s Remedies for Breach. It is recognized that damages in the event of breach of
this Section 4 by the Executive would be difficult to ascertain, and it is therefore agreed that
each of the Partnership and the MLP, in addition to and without limiting any other remedy or right
either may have, shall have the right to an injunction or other equitable relief in any court of
competent jurisdiction, enjoining any such breach or prospective breach. The existence of this
right shall not preclude any other rights and remedies at law or in equity which the Partnership or
the MLP may have. Neither the Partnership nor the MLP shall be required to post any bond in
connection with the foregoing. The Executive acknowledges and agrees that the provisions of this
Section 4 are reasonable and necessary for the successful operation of the Partnership and the MLP
and that the Partnership would not have entered into this Agreement if the Executive had not agreed
to the provisions of this Section 4.

4.4 Enforceability. The covenants set forth in Sections 4.1 and Section 4.2 shall be construed
as independent of any of the other provisions contained in this Agreement and shall be enforceable
as aforesaid, notwithstanding the existence of any claim or cause of action of the Executive
against the Partnership, the MLP or any of their affiliates, whether based on this Agreement or
otherwise. In the event that any of the provisions of this Section 4 should ever be adjudicated to
exceed the time or other limitations permitted by applicable law, then such provisions shall be
deemed reformed in any jurisdiction to the time or other limitations permitted by applicable law.
The provisions of this Section 4 shall survive the expiration or the termination of this Agreement.
If the Partnership asserts a claim against the Executive for violation of any covenant set forth in
Section 4.1 or Section 4.2 and the Executive prevails on the merits in a material respect on such
claim, the Partnership shall pay the reasonable attorneys’ fees and costs incurred by the Executive
in connection with such claim.

5. Termination of Employment

5.1 Death or Disability. The Employment Term shall terminate automatically upon the
Executive’s death or Disability (as hereinafter defined). “Disability” shall mean any physical or
mental impairment, infirmity or incapacity rendering the Executive substantially unable to perform
his duties hereunder for a period of time exceeding 180 days in the aggregate during any period of
twelve consecutive months. A determination of Disability shall be made by a physician independent
of the Partnership chosen by the Partnership. In the event of an initial determination of
Disability, the Executive may seek a second opinion of his choosing. Where the first and second
opinions differ, a third opinion rendered by a physician mutually agreed to by the Partnership and
the Executive shall be deemed final. For so long as the Executive is receiving the Base Salary
during such twelve month period, any benefits under the Partnership’s disability insurance policies
to which the Executive would be entitled with respect to such period shall accrue to, and be for
the benefit of, the Partnership.

 

 

 

5.2 Cause. The Partnership may terminate the Executive’s employment and the Employment Term
for “Cause”. For purposes of this Agreement, “Cause” means: (a) the Executive’s willful misconduct,
gross negligence or recklessness in the performance of his duties hereunder; (b) a material breach
by the Executive of any of the provisions of Section 4.1 or 4.2 hereof; or (c) an action or
omission by the Executive for which he is indicted or convicted for commission of a felony or a
misdemeanor (in the case of a misdemeanor, involving moral turpitude) or the Executive being
subject to a judgment, order or decree (by consent or otherwise) by any governmental or regulatory
authority which restricts his ability to engage in the business conducted by the Partnership, the
MLP and their affiliates.

5.3 Good Reason. The Executive’s employment and the Employment Term may be terminated by the
Executive for Good Reason. For purposes of this Agreement, “Good Reason” means: (a) any failure by
the Partnership to comply in any material respect with any of the provisions of Article 3 of this
Agreement which is not cured within thirty days following notice by the Executive; (b) a material
diminution in the Executive’s title, authority, duties or responsibilities, without the consent of
the Executive; or (c) the requirement by the Partnership, without the Executive’s consent, that the
Executive be based more than 35 miles from the Executive’s present office location or more than 50
miles from the Executive’s present residence.

5.4 Termination without Cause. Notwithstanding anything to the contrary herein, the
Partnership may terminate the Executive’s employment hereunder and the Employment Term at any time
and the Executive may be removed as an officer of the MLP and the Partnership at any time, subject
to the provisions of Section 6.

5.5 Non-Renewal. The Executive’s employment and the Employment Term may be terminated by
either party pursuant to a Non-Renewal Notice, subject to the provisions of Section 6.

5.6 Notice of Termination. Any termination of employment hereunder (other than termination as
a result of death) by the Partnership or by the Executive shall be communicated by Notice of
Termination (as hereinafter defined) to the other party hereto given in accordance with Section 8.2
of this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice
which (a) indicates the specific termination provision in this Agreement relied upon, and (b) sets
forth the facts and circumstances claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated.

5.7 Date of Termination. The termination of the Executive’s employment pursuant to Section 5
shall be effective on the date that the Executive or the Partnership, as the case may be, receives
the Notice of Termination; provided however, that (a) if the Executive’s employment is terminated
by reason of death, the Date of Termination shall be the date of death of the Executive. (b) if the
Executive’s employment is terminated by reason of Disability, the Date of Termination shall be the
date that a physician finally determines in accordance with Section 5.1 that a Disability exists
with respect to the Executive, (c) if the Executive terminates his employment, the Date of
Termination shall be the tenth Business Day after receipt by the Partnership of the Notice of
Termination (or, in the event of termination for Good Reason as set forth in Section 5.3(a), the
tenth Business Day after the expiration of the 30 day cure period) and (d) if the Executive’s
employment is terminated pursuant to a Non-Renewal Notice, the Date of Termination shall be the
Renewal Date or the next anniversary thereof (as applicable). For purposes of this Agreement,
references to a “termination,” “termination of employment” or like terms shall mean “Separation
from Service” as defined in Section 9.1 herein.

6. Payment Upon Termination

6.1 Change of Control. In the event that a Change of Control occurs during the Employment Term
and within six months prior thereto or at any time thereafter, either the Partnership terminates
the Executive’s employment hereunder without Cause (including pursuant to a Non-Renewal Notice) or
the Executive terminates his employment hereunder with Good Reason or the Executive elects to
terminate his employment hereunder during the six month period commencing on the sixth month
anniversary and ending on the twelve month anniversary of a Change of Control, (a) the Partnership
shall pay to the Executive, in accordance with Section 6.4 herein, the sum of (i) the portion of
the Base Salary earned but unpaid as of the Date of

 

 

 

Termination, (ii) the Pro-rata Bonus (as
defined below) and (iii) an amount equal to three times the sum of (A) the Base Salary plus (B) the Maximum Annual Bonus and (b) the
Partnership shall provide to the Executive and his dependents from the Date of Termination until
the expiration of the third anniversary of the Date of Termination (the “Severance Period”),
medical benefits substantially equivalent to the medical benefits provided by the Partnership to
senior executives and their dependents during such period; provided, however, (i) that benefits
otherwise receivable by the Executive pursuant to this clause (b) of this Section 6.1 shall be
reduced to the extent comparable benefits are actually provided to the Executive or his dependents
by another party (and the Executive shall report to the Partnership any benefits that are actually
provided to him); (ii) the Severance Period shall run concurrently with any period for which
Executive is eligible to elect health coverage under COBRA; (iii) during the Severance Period, the
benefits provided in any one calendar year shall not affect the amount of benefits provided in any
other calendar year; (iv) the reimbursement of an eligible taxable expense shall be made on or
before the end of the calendar year following the calendar year in which the expense was incurred;
and (v) the Executive’s rights pursuant to this Section 6.1(b) shall not be subject to liquidation
or exchange for another benefit. The Partnership’s obligation and the Executive’s rights under
clause (a)(ii) and (iii) and clause (b) of this Section 6.1 shall terminate immediately upon the
occurrence of a Competition Event (as defined below).

6.2 Good Reason, Termination without Cause. In the event that the Executive terminates his
employment for Good Reason or the Partnership terminates the Executive’s employment without Cause
or has delivered a Non-Renewal Notice to the Executive, then, without duplication of any amounts
paid or benefits provided pursuant to Section 6.1, the Partnership shall (a) pay to the Executive,
in accordance with Section 6.4 herein, (i) all earned but unpaid Base Salary as of the Date of
Termination, (ii) the Pro-rata Bonus (as defined below) and (iii) an amount equal to three times
Base Salary and (b) provide the Executive and his dependents, from the Date of Termination until
the expiration of the Severance Period, medical benefits substantially equivalent to the medical
benefits provided by the Partnership to senior executives and their dependents during such period;
provided, however, that (i) benefits otherwise receivable by the Executive pursuant to clause (b)
of this Section 6.2 shall be reduced to the extent comparable benefits are actually provided to the
Executive or his dependents by another party (and the Executive shall report to the Partnership any
benefits that are actually provided to him); (ii) the Severance Period shall run concurrently with
any period for which Executive is eligible to elect health coverage under COBRA; (iii) during the
Severance Period, the benefits provided in any one calendar year shall not affect the amount of
benefits provided in any other calendar year; (iv) the reimbursement of an eligible taxable expense
shall be made on or before the end of the calendar year following the year in which the expense was
incurred; and (v) the Executive’s rights pursuant to this Section 6.2(iii) shall not be subject to
liquidation or exchange for another benefit. The Partnership’s obligation and the Executive’s
rights under clause (a)(ii) and (iii) and clause (b) of this Section 6.2 shall terminate
immediately upon the occurrence of a Competition Event (as defined below).

6.3 Death. Disability, Cause, Without Good Reason. In the event that the Executive’s
employment is terminated (a) by reason of the Executive’s death or Disability, (b) by the
Partnership for Cause, (c) by the Executive without Good Reason or (d) by the Executive pursuant to
a Non-Renewal Notice, the Partnership shall pay to the Executive, the Executive’s estate, or the
Executive’s legal representative, as the case may be, in accordance with Section 6.4 herein, (i)
the Base Salary earned but unpaid as of the Date of Termination and (ii) in the event that such
termination is by reason of death, Disability or the delivery of a Non-Renewal Notice, the Pro-rata
Bonus (as defined below).

6.4 Timing of Payments.

(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.

 

 

 

(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.

6.5 Excise Taxes.

(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.

(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.

6.6 Certain Definitions.

(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” shall mean:

(i) the date (which must be a date subsequent to the Effective Date) on which any
Person (including the Partnership’s general partner) or More than One Person Acting as a
Group (other than the Partnership and/or its Subsidiaries) acquires, during the 12 month
period ending on the date of the most recent acquisition, Common Units or other voting
equity interests eligible to vote for the election of Supervisors (or of any entity,
including the Partnership’s general partner, that has the same authority as the Board to
manage the affairs of the Partnership) (“Voting Securities”) representing thirty percent
30% or more of the combined voting power of the Partnership’s then outstanding Voting
Securities; provided, however, that in determining whether a Change of Control has
occurred, Voting Securities which have been acquired in a “Non-Control Acquisition” shall
be excluded from the numerator. A “Non-Control Acquisition” shall mean an acquisition of Voting Securities (x) by the Partnership, any of its Subsidiaries
and/or an employee benefit plan (or a trust forming a part thereof) maintained by any one
or more of them, or (y) in connection with a “Non-Control Transaction”; or

 

 

 

(ii) the date of approval by the limited partners of the Partnership, of (w) a merger,
consolidation or reorganization involving the Partnership, unless (A) the holders of the
Voting Securities of the Partnership 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 Voting Securities of the entity resulting from such merger,
consolidation or reorganization (the “Surviving Entity”) in substantially the same
proportion as their ownership of the Voting Securities of the Partnership immediately
before such merger, consolidation or reorganization, and (B) no person or entity (other
than the Partnership, any Subsidiary, any employee benefit plan (or any trust forming a
part thereof) maintained by the Partnership, any Subsidiary, 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 Voting
Securities of the Partnership), has Beneficial Ownership of more than twenty five percent
(25%) of the combined voting power of the Surviving Entity’s then outstanding Voting
Securities; (x) a complete liquidation or dissolution of the Partnership; or (y) 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). 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 (w) hereof shall be referred to as a
“Non-Control Transaction;” or

(iii) the date a majority of the members of the Board is replaced during any
twelve-month period by the action of the Board taken when a majority of the Supervisors who
are then members of the Board are not Continuing Supervisors (for purposes of this section,
the term “Continuing Supervisor” means a Supervisor who was either (A) first elected or
appointed as a Supervisor prior to the Effective Date; or (B) subsequently elected or
appointed as a Supervisor if such Supervisor was nominated or appointed by at least a
majority of the then Continuing Supervisors);

Notwithstanding the foregoing, a Change of 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 Voting Securities Beneficially Owned by the Subject Person, provided that if
a Change of 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 of Control shall occur.

For purposes of the foregoing definition of Change of 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).

6.7 Mitigation. The Executive shall have no duty to mitigate with respect to any payments due
pursuant to Section 6 by seeking or accepting other employment.

 

 

 

7. Compliance with Other Agreements by Executive

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. Miscellaneous

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.

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:

Mark A. Alexander

c/o Suburban Propane

One Suburban Plaza

240 Route 10 West

P.O. Box 206

Whippany, NJ 07981-0206

With Copies To:

Kenneth Kirschner

Hogan & Hartson LLP

875 Third Avenue

New York, NY 10022

If to the Partnership:

Suburban Propane, L.P.

One Suburban Plaza

240 Route 10 West

Whippany, New Jersey 07981-0206

Telecopier: (201) 515-5982

Attention: Paul Abel, 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.

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.

9. Code Section 409A.

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)

 

 

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
above written.

	 	 	 	 	 
	 	SUBURBAN PROPANE, L.P.

 	 
	 	By:  	/s/ HAROLD R. LOGAN, JR.
 	 
	 	 	Name:  	Harold R. Logan, Jr. 	 
	 	 	Title:  	Chairman of the Board 	 
	 	 	 
	 	

/s/ MARK A. ALEXANDER
 	 
	 	Mark A. Alexander

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