Document:

Filed by Bowne Pure Compliance

EXHIBIT
10.1

SUBURBAN PROPANE PARTNERS, L.P.

2000 RESTRICTED UNIT PLAN

EFFECTIVE NOVEMBER 1, 2000

AMENDED AND RESTATED EFFECTIVE OCTOBER 17, 2006

FURTHER AMENDED ON JULY 31, 2007, OCTOBER 31, 2007, JANUARY 24, 2008 AND

JANUARY 20, 2009

ARTICLE I

PURPOSE AND APPROVAL

The purpose of this Plan is to strengthen Suburban Propane Partners, L.P., a Delaware limited
partnership (the “Partnership”), by providing an incentive to certain selected employees and
Elected Supervisors of the Partnership and affiliated entities, and thereby encouraging them to
devote their abilities and industry to the success of the Partnership’s business enterprise in such
a manner as to maximize the Partnership’s value. It is intended that this purpose be achieved by
extending to such individuals an added long-term incentive for continued service to the
Partnership, and for high levels of performance and unusual efforts which enhance the Partnership’s
value through the grant of rights to receive Common Units (as hereinafter defined) of the
Partnership.

ARTICLE II

DEFINITIONS

For the purposes of this Plan, unless otherwise specified in an agreement, capitalized terms
shall have the following meanings:

2.1 “Act” shall mean the Securities Act of 1933, as amended.

2.2 “Agreement” shall mean the written agreement between the Partnership and a Grantee
evidencing the grant of an Award and setting forth the terms and conditions thereof.

2.3 “Award” shall mean a grant of restricted Common Units pursuant to the terms of this
Plan.

2.4 “Beneficial Ownership” shall mean as that term is used within the meaning of
Rule 13d-3 promulgated under the Exchange Act.

2.5 “Board” shall mean the Board of Supervisors of the Partnership.

2.6 “Cause” shall mean, unless otherwise provided in an Agreement, (a) the Grantee’s
gross negligence or willful misconduct in the performance of his duties, (b) the Grantee’s willful
or grossly negligent failure to perform his duties, (c) the breach by the Grantee of any written
covenants to Suburban Propane, L.P. or any of the Partnership’s other affiliates, (d) dishonest,
fraudulent or unlawful behavior by the Grantee (whether or not in conjunction with employment) or
the Grantee 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 Suburban Propane, L.P., the Partnership, or any of their affiliates, or (e) willful or
reckless breach by the Grantee of any policy adopted by Suburban Propane, L.P., the Partnership, or
any of their affiliates, concerning conflicts of interest, standards of business conduct or fair
employment practices or procedures with respect to compliance with applicable law.

2.7 “Change in Capitalization” shall mean any increase or reduction in the number of
Common Units, or any change (including, but not limited to, a change in value) in the Common Units,
or exchange of Common Units for a different number of kind of units or other securities of the
Partnership, by reason of a reclassification, recapitalization, merger, consolidation,
reorganization, spin-off, split-up, issuance of warrants or rights or other convertible securities,
unit distribution, unit split or reverse unit split, cash dividend, property dividend, combination
or exchange of units, repurchase of units, change in corporate structure or otherwise.

 

 

 

2.8 “Change of Control” shall mean:

(a) 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

(b) 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

(c) 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.

 

 

 

2.9 “Code” shall mean the Internal Revenue Code of 1986, as amended.

2.10 “Committee” shall mean the Compensation Committee of the Board.

2.11 “Common Units” shall mean the common units representing limited partnership interest
of the Partnership.

2.12 “Cure Period” shall mean the thirty-day period, following notification by a Grantee
that a Good Reason event has occurred, during which the Partnership has the option of rectifying
the Good Reason event.

2.13 “Disability” shall have the same meaning that such term (or similar term) has under
the Partnership’s long-term disability plan, or as otherwise determined by the Committee.

2.14 “Effective Date” shall mean November 1, 2000.

2.15 “Elected Supervisor” shall mean those members of the Board elected by a vote of
holders of Common Units.

2.16 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

2.17 “Fair Market Value” per unit on any date shall mean the average of the high and low
sale prices of the Common Units on such date on the principal national securities exchange on which
such Common Units are listed or admitted to trading, or if such Common Units are not so listed or
admitted to trading, the arithmetic mean of the per Common Unit closing bid price and per Common
Unit closing asked price on such date as quoted on the National Association of Securities Dealers
Automated Quotation System or such other market on which such prices are regularly quoted, or, if
there have been no published bid or asked quotations with respect to Common Units on such date, the
Fair Market Value shall be the value established by the Board in good faith.

2.18 “Good Reason” shall mean, unless otherwise provided in an Agreement, in the case of
an employee of Suburban Propane, L.P. or any of the Partnership’s other affiliates, (a) any failure
by Suburban Propane, L.P. or any of the Partnership’s other affiliates to comply in any material
respect with the compensation provisions of a written employment agreement between the Grantee and
Suburban Propane, L.P. or any of the Partnership’s other affiliates, (b) a material adverse change
in the Grantee’s title without his consent, or (c) the assignment to the Grantee, without his
consent, of duties and responsibilities materially inconsistent with his level of responsibility.

2.19 “Grantee” shall mean a person to whom an Award has been granted under the Plan.

2.20 “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).

2.21 “Partnership” shall mean Suburban Propane Partners, L.P., a Delaware limited
partnership, and its successors.

2.22 “Person” has the meaning used for purposes of Section 13(d) or 14(d) of the Exchange
Act.

2.23 “Plan” shall mean the Suburban Propane Partners, L.P. 2000 Restricted Unit Plan.

 

 

 

2.24 “Retirement” shall mean voluntary termination of employment (or, if the Grantee is a
non-employee Supervisor of the Partnership, voluntary termination of service as such a Supervisor)
by a Grantee who has attained age 55 and who has completed 10 years of “eligible service” to the
Partnership or its predecessors, in connection with a bona fide intent by the Grantee to no longer
seek full time employment in the industries in which the Partnership then participates. Retirement
shall not include voluntary termination of employment by a Grantee in response to, or anticipation
of, a termination of employment for Cause by the Partnership or one of its affiliates. The term
“eligible service” (a) for Grantees who are employees of the Partnership or one of its
affiliates, shall have the same meaning as the term is used in the Pension Plan for Eligible
Employees of Suburban Propane L.P. and Subsidiaries, and (b) for non-employee Supervisors of the
Partnership, shall mean service on the Board.

2.25 “Subsidiary” means any corporation, partnership, or other Person of which a majority
of its voting power or its voting equity securities or equity interest is owned, directly or
indirectly, by the Partnership.

2.26 “Recoupment Effective Date” means July 31, 2007.

ARTICLE III

ADMINISTRATION OF THE PLAN

3.1 The Plan shall be administered by the Committee, which shall hold meetings at such
times as may be necessary for the proper administration of the Plan. The Committee shall keep
minutes of its meetings. A quorum shall consist of not less than two members of the Committee and a
majority of a quorum may authorize any action. Any decision or determination reduced to writing and
signed by a majority of all of the members of the Committee shall be as fully effective as if made
by a majority vote at a meeting duly called and held. Notwithstanding anything else herein to the
contrary, the Committee may delegate to any individual or committee of individuals the
responsibility to carry out any of its rights and duties with respect to the Plan. No member of the
Committee or any individual to whom it has delegated any of its rights and duties shall be liable
for any action, failure to act, determination or interpretation made in good faith with respect to
this Plan or any transaction hereunder, except for liability arising from his or her own willful
misfeasance, gross negligence or reckless disregard of his or her duties. The Partnership hereby
agrees to indemnify each member of the Committee and its delegates for all costs and expenses and,
to the extent permitted by applicable law, any liability incurred in connection with defending
against, responding to, negotiating for the settlement of or otherwise dealing with any claim,
cause of action or dispute of any kind arising in connection with any actions in administering this
Plan or in authorizing or denying authorization for any transaction hereunder.

3.2 Each member of the Committee shall be (i) a “disinterested person” within the
meaning of Rule 16b-3 under the Exchange Act and (ii) an “independent director” within
the meaning of the listing standards of the New York Stock Exchange.

3.3 Subject to the express terms and conditions set forth herein, the Committee shall have
the power, consistent with Rule 16b-3 under the Exchange Act, from time to time to:

(a) select those employees and members of the Board to whom Awards shall be granted and to
determine the terms and conditions (which need not be identical) of each such Award;

(b) make any amendment or modification to any Agreement consistent with the terms of the
Plan;

(c) construe and interpret the Plan and the Awards, and establish, amend and revoke rules
and regulations for the administration of the Plan, including, but not limited to, correcting any
defect or supplying any omission, or reconciling any inconsistency in the Plan or in any Agreement
or between the Plan and any Agreement, in the manner and to the extent it shall deem necessary or
advisable so that the Plan complies with applicable law, including Rule 16b-3 under the Exchange
Act to the extent applicable, and otherwise to make the Plan fully effective. All decisions and
determinations by the Committee or its
delegates in the exercise of this power shall be final, binding and conclusive upon the
Partnership, its subsidiaries, the Grantees and all other persons having any interest therein;

 

 

 

(d) exercise its discretion with respect to the powers and rights granted to it as set
forth in the Plan; and

(e) generally, exercise such powers and perform such acts as it deems necessary or
advisable to promote the best interests of the Partnership with respect to the Plan.

3.4 Subject to adjustment as provided in Article 7, the total number of Common Units that
may be made subject to Awards granted under the Plan shall be 717,805, consisting of 230,000 of
which are newly authorized as of the date hereof (subject to the unitholder approval requirements
set forth in Section 9.6), and 487,805 which were previously authorized as of the Effective Date.
The Partnership shall reserve for purposes of the Plan, out of its authorized but unissued units,
such newly authorized amount of Common Units.

3.5 Notwithstanding anything inconsistent contained in this Plan, the number of Common
Units subject to, or which may become subject to, Awards at any time under the Plan shall be
reduced to such lesser amount as may be required pursuant to the methods of calculation necessary
so that the exemptions provided pursuant to Rule 16b-3 under the Exchange Act will continue to be
available for transactions involving all current and future Awards. In addition, during the period
that any Awards remain outstanding under the Plan, the Committee may make good faith adjustments
with respect to the number of Common Units attributable to such Awards for purposes of calculating
the maximum number of Common Units subject to the granting of future Awards under the Plan,
provided that following such adjustments the exemptions provided pursuant to Rule 16b-3 under the
Exchange Act will continue to be available for transactions involving all current and future
Awards.

ARTICLE IV

COMMON UNIT GRANTS

4.1 Time Vesting Grants. From time to time, the Committee may grant restricted
Common Units to Grantees, in such amounts as it deems prudent and proper. Such rights shall be
granted, and the Common Units underlying such rights shall be issued, in consideration of the
performance of services and for no other consideration.

4.2 Forfeiture. A Grantee’s rights with respect to the restricted Common Units
shall remain forfeitable at all times prior to the date on which the restrictions thereon shall
have lapsed in accordance with the terms of the Plan and the Award.

4.3 Vesting Schedule. The restricted Common Unit grants made pursuant to Section
4.1 shall vest and become non-forfeitable, unless otherwise determined by the Committee (at the
time of Award or otherwise), and the restrictions thereon shall lapse, at a rate of 25% on the
third anniversary of the date of the applicable Award, a second 25% on the fourth anniversary, and
a final 50% on the fifth anniversary of the date of the applicable Award, provided that the Grantee
is employed on such date.

4.4 Other Grants. Notwithstanding anything else herein to the contrary, the
Committee may grant Common Units on such terms and conditions as it determines in its sole
discretion, the terms and conditions of which shall be set forth in the applicable Award.

 

 

 

ARTICLE V

OTHER PROVISIONS APPLICABLE TO VESTING

5.1 Change of Control. Notwithstanding anything in this Plan to the contrary,
upon a Change of Control, all restrictions on Common Units shall lapse immediately (unless
otherwise set forth in the terms of the applicable Award) and all such restricted Common Units
shall become fully vested and non-forfeitable.

5.2 Forfeiture. Unless otherwise provided in an Award, any and all restricted
Common Units in respect of which the restrictions have not previously lapsed shall be forfeited
(and automatically transferred to and reacquired by the Partnership at no cost to the Partnership
and neither the Grantee nor any successors, heirs, assigns, or personal representatives of such
Grantee shall thereafter have any further right or interest therein) upon the termination of the
Grantee’s employment for any reason; provided, however, that in the event that a Grantee’s
employment by the Partnership or one of its affiliates was terminated without Cause or by the
Grantee for Good Reason, in either case, within six months prior to a Change of Control, no
forfeiture of Common Units shall be treated as occurring by reason of such termination and the
Common Units shall vest accordingly. As a condition precedent for such vesting to occur when the
Grantee terminated employment for Good Reason within six months prior to a Change of Control, the
Grantee must have both (a) notified the Partnership’s Vice President of Human Resources (or if
there be no such person, the then highest ranking member of the Partnership’s Human Resources
Department) of the Good Reason event by certified mail or overnight courier within ninety days
following the date of such event. and (b) allowed a Cure Period following the date of such notice.

5.3 Disability. Notwithstanding the provisions of Section 5.2, unless otherwise
provided in an Agreement, if a Grantee’s employment terminates as a result of Disability, the
restricted Common Units held by such Grantee for one year on the date of termination shall
immediately vest and shall be distributed as soon as practical following the Grantee’s date of
Disability but no later than the date two and one half months following the calendar year in which
such Disability date occurred.

5.4 Retirement. Notwithstanding the provisions of Section 5.2, unless otherwise
provided in an Agreement, if a Grantee’s employment terminates as a result of Retirement, the
restricted Common Units held by such Grantee which were awarded to Grantee more than six (6) months
prior to the effective date of such Retirement shall vest six months after the effective date of
such retirement and shall be distributed as soon as practical following the vesting date but no
later than the date two and one half months following the calendar year in which such vesting date
occurred.

5.5 Recycling of Forfeited Shares. Subject to the restrictions set forth in Rule
16b-3 of the Exchange Act, any Common Units forfeited hereunder may be, after six months, the
subject of an Award pursuant to this Plan.

5.6 409A Compliance. In the event that any Common Units become vested solely on
account of (i) a Grantee’s employment by the Partnership or one of its affiliates is terminated
without Cause or by the Grantee for Good Reason, in either case, within six months prior to a
Change of Control as set forth in Section 5.2, above; (ii) the Grantee’s service is terminated due
to Disability as set forth in Section 5.3 above; or (iii) the Grantee’s service is terminated due
to Retirement as set forth in Section 5.4 above and the Grantee is a ''specified employee’’ as
defined in Section 409A(a)(2)(B)(i) of the Code, then the distribution of any Award under the Plan
that is treated as deferred compensation under Section 409A of the Code shall be delayed until the
date that is six months after the date of separation from service.

5.7 Recoupment Policy. Notwithstanding anything in this Plan to the contrary,
awards of Common Units granted under the Plan on or after the Recoupment Effective Date shall be
deemed ''Incentive Compensation’’ covered by the terms of the Partnership’s Incentive Compensation
Recoupment Policy (the ''Policy’’) adopted by the Board on April 25, 2007, which is incorporated
herein by reference. In accordance with the Policy, in the event of a significant restatement of
the Partnership’s published financial results and the Committee determines that fraud or
intentional misconduct by a Grantee was a contributing factor to such restatement, then, in
addition to other disciplinary action, the Committee may require
cancellation of any unvested restricted Common Units granted under the Plan to that Grantee
after the Recoupment Effective Date. This Section 5.7 shall be interpreted and administered in
accordance with the Policy as in effect from time to time. In the case of any inconsistency between
the Policy and this Section 5.7, the Policy shall control.

 

 

 

ARTICLE VI

DELIVERY OF UNITS, ETC.

6.1 Delivery of Common Units. Subject to Section 16, upon the vesting of Common
Units, the Partnership shall deliver to the Grantee a certificate representing such number of
Common Units as are subject to such rights, to the extent of such vesting, free of all restrictions
hereunder within 45 days of the date of vesting.

6.2 Transferability. Until such time as restricted Common Units have vested and
become non-forfeitable and certificates representing Common Units in respect thereof have been
issued, a Grantee shall not be entitled to transfer such Common Units.

6.3 Rights of Grantees. Until such time as restricted Common Units have vested
and become non-forfeitable and certificates representing Common Units in respect thereof have been
issued, a Grantee shall not be entitled to exercise any rights of a unitholder with respect
thereto, including the right to vote such units and the right to receive allocations or
distributions thereon.

ARTICLE VII

ADJUSTMENT UPON CHANGES IN CAPITALIZATION

7.1 In the event of a Change in Capitalization, the Committee shall conclusively determine
the appropriate adjustments, if any, to (i) the maximum number and class of Common Units or other
units or securities with respect to which Awards may be granted under the Plan, (ii) the number of
Common Units or other units or securities which are subject to outstanding Awards granted under the
Plan, and the purchase price thereof, if applicable.

7.2 If, by reason of a Change in Capitalization, a Grantee of an Award shall be entitled to
new, additional or different rights to acquire units or other securities, such new, additional or
different rights or securities shall thereupon be subject to all of the conditions, restrictions
and performance criteria which were applicable to the units subject to the Award prior to such
Change in Capitalization.

ARTICLE VIII

TERMINATION AND AMENDMENT OF THE PLAN

The Plan shall terminate on the day preceding the tenth anniversary of the Effective Date and
no Award may be granted thereafter. The Board may sooner terminate the Plan and the Board may at
any time and from time to time amend, terminate, modify or suspend the Plan or any Agreement
provided, however, that no such amendment, modification, suspension or termination shall impair or
adversely affect any Awards theretofore granted under the Plan, except with the consent of the
Grantee, nor shall any amendment, modification, suspension or termination deprive any Grantee of
any Common Units which he or she may have acquired through or as a result of the Plan. To the
extent necessary under Section 16(b) of the Exchange Act and the rules and regulations promulgated
thereunder or other applicable law, no amendment shall be effective unless approved by the
unitholders of the Partnership in accordance with applicable law and regulations.

 

 

 

ARTICLE IX

MISCELLANEOUS

9.1 Non-Exclusivity of the Plan. The adoption of the Plan by the Board shall not
be construed as amending, modifying or rescinding any previously approved incentive arrangement or
as creating any limitations on the power of the Board to adopt such other incentive arrangements as
it may deem desirable,
including, without limitation, the granting of options to acquire the Common Units, and such
arrangements may be either applicable generally or only in specific cases.

9.2 Limitation of Liability. As illustrative of the limitations of liability of
the Partnership, but not intended to be exhaustive thereof, nothing in the Plan shall be construed
to:

(a) give any person any right to be granted an Award other than at the sole discretion of
the Committee;

(b) give any person any rights whatsoever with respect to the Common Units except as
specifically provided in the Plan or an Agreement;

(c) limit in any way the right of the Partnership or any of its affiliates to terminate the
employment of any person at any time; or

(d) be evidence of any agreement or understanding, express or implied, that the Partnership
will employ any person at any particular rate of compensation or for any particular period of time.

9.3 Regulations and Other Approvals; Governing Law. Except as to matters of
federal law, this Plan and the rights of all persons claiming hereunder shall be construed and
determined in accordance with the laws of the State of New Jersey without giving effect to
conflicts of law principles.

Notwithstanding any other provisions of this Plan, the obligation of the Partnership to
deliver the Common Units in respect thereof under the Plan shall, in each case, be subject to all
applicable laws, rules and regulations, including all applicable federal and state securities laws,
and the obtaining of all such approvals by governmental agencies as may be deemed necessary or
appropriate by the Committee.

(a) Except as provided in Article VIII hereof, the Board may make such changes to the Plan
or an Agreement as may be necessary or appropriate to comply with the rules and regulations of any
government authority.

(b) Each Award is subject to the requirement that, if at any time the Committee determines,
in its sole and absolute discretion, that the listing, registration or qualification of the Common
Units issuable pursuant to the Plan is required by any securities exchange or under any state or
federal law, or the consent or approval of any governmental regulatory body is necessary or
desirable as a condition of, or in connection with, the grant of an Award of the issuance of the
Common Units, no Awards shall be granted and no Common Units shall be issued, in whole or in part,
unless such listing, registration, qualification, consent or approval has been effected or obtained
free of any conditions not acceptable to the Committee.

(c) Notwithstanding anything contained in the Plan or any Agreement to the contrary, in the
event that the disposition of the Common Units or any other securities acquired pursuant to the
Plan is not covered by a then current registration statement under the Act or is not otherwise
exempt from such registration, such Common Units shall be restricted against transfer to the extent
required by the Act and Rule 144 or other regulations thereunder. The Committee may require any
person receiving Common Units pursuant to an award granted under the Plan, as a condition precedent
to receipt of such Common Units, to represent and warrant to the Partnership in writing that the
Common Units acquired by such individual are acquired without a view to any distribution thereof
and will not be sold or transferred other than pursuant to an effective registration thereof under
said Act or pursuant to an exemption applicable under the Act or the rules and regulations
promulgated thereunder. The certificates evidencing any of such Common Units shall be appropriately
legended to reflect their status as restricted securities as aforesaid.

 

 

 

9.4 Withholding of Taxes. At such times as a Grantee recognizes taxable income in
connection with the rights to acquire Common Units granted hereunder (a “Taxable Event”), the
Grantee shall pay to the Partnership an amount equal to the federal, state and local income taxes
and other amounts as may be
required by law to be withheld by the Partnership in connection with the Taxable Event (the
“Withholding Taxes”) prior to the issuance of such units. The Partnership shall have the right to
deduct from any payment of cash to a Grantee an amount equal to the Withholding Taxes in
satisfaction of the obligation to pay Withholding Taxes. In satisfaction of the obligation to pay
Withholding Taxes to the Partnership, the Grantee may make a written election (the “Tax
Election”), which may be accepted or rejected in the discretion of the Committee, to have withheld
a portion of the Common Units then issuable to him or her having an aggregate Fair Market Value, on
the date preceding the date of such issuance, equal to the Withholding Taxes, provided that in
respect of a Grantee who may be subject to liability under Section 16(b) of the Exchange Act, such
withholding is done in accordance with any applicable Rule under section 16(b) of the Exchange Act.

9.5 Interpretation. The Plan is intended to comply with Rule 16b-3 promulgated
under the Exchange Act, and the Committee shall interpret and administer the provisions of the Plan
or any Agreement in a manner consistent therewith. Any provisions inconsistent with such rule shall
be inoperative and shall not affect the validity of the Plan.

9.6 Effective Date. The effective date of the Plan shall be the Effective Date.
The effectiveness of the Plan is subject to approval of the Plan prior to the Effective Date by the
partners of the Partnership. The effective date of the amendments to the Plan as set forth in this
Amended and Restated Plan shall be as of the date such amendment is approved by the unitholders of
the Partnership to the extent necessary under Section 16(b) of the Exchange Act and the rules and
regulations promulgated thereunder and as required under the listing standards of the New York
Stock Exchange or any other applicable law.Filed by Bowne Pure Compliance

EXHIBIT
10.2

SUBURBAN PROPANE, L.P.

SEVERANCE PROTECTION PLAN

As Adopted in September 1996 and Amended in January 2008 and January 2009

The Board of Supervisors of Suburban Propane Partners, L.P. (the “Partnership”), Suburban
Propane, L.P. (“Suburban”), and all direct or indirect subsidiaries of Suburban, has adopted a
program (referred to herein as the “Severance Protection Plan” or the “Plan”) designed to
protect certain key employees from the effects of an actual or possible Change in Control (as
defined below), and thereby to enable Suburban to obtain the continued availability of such key
employees’ services, managerial skills and business experience upon the threat or actual occurrence
of a Change in Control.

An employee of Suburban or any of its subsidiaries who (a) received an unvested 2003 Long Term
Incentive Plan (together with any successor plan thereto, the “LTIP”) award during the fiscal
year in which the Change in Control occurred, or (b), alternatively, if the Change in Control
occurs on the first day of Suburban’s fiscal year, received an unvested LTIP award during the
fiscal year immediately preceding the fiscal year in which the Change in Control occurred, or (c)
Suburban agreed in writing would receive an unvested LTIP award at the commencement of the Suburban
fiscal year immediately following the Change in Control, or (d), alternatively, if the Change in
Control occurs on the first day of Suburban’s fiscal year, Suburban agreed in writing would receive
an unvested LTIP award at the commencement of the Suburban fiscal year in which the Change in
Control occurred is eligible for benefits under this Severance Protection Plan unless otherwise
provided by written agreement between such employee and Suburban.

An employee who is eligible for benefits under this Plan will become entitled to benefits
under the Plan if there is a loss of his or her employment within one year following a Change in
Control. In such event, the employee will be entitled to receive (in lieu of any other severance
benefits to which he or she may be entitled) a lump-sum benefit equal to the product of sixty-five
(65) times 1/52 of the sum of the employee’s base annual salary and Target Cash Bonus, defined as
the percentage (established by Suburban as of the later of the start of the fiscal year or
commencement of employment) of the employee’s annual base salary that would be paid as a cash bonus
to the employee if, for that fiscal year, actual EBITDA equals the Partnership’s budgeted EBITDA,
without regard to whether the Target Cash Bonus was earned or paid, as of the date of the Change in
Control (but not lower than the highest sum of such amounts at any time during the period beginning
one year prior to the Change in Control and ending on the employee’s termination date). The benefit
shall be paid within 30 days following the employee’s termination of employment.

Each employee who becomes entitled to receive benefits under this Plan shall also receive
payment for (a) all annual incentive bonus awards earned but unpaid for all fiscal years completed
prior to the Change in Control and for all fiscal years completed prior to the employee’s
termination of employment, plus (b) for any partially completed fiscal year during which the
employee’s termination of employment occurred, a payment equal to his or her then current Target
Cash Bonus, multiplied by a factor equal to a numerator representing the number of full and partial
months of service during the partially completed fiscal year and a denominator of twelve. Any
amounts payable under this paragraph shall be paid within 30 days following the employee’s
termination of employment.

 

 

 

For purposes of this Plan, an employee shall be deemed to have lost his or her employment if
(a) the employee’s employment is terminated by Suburban or its successor (unless such termination
is due to willful malfeasance in office as that term is defined below), or (b) the employee’s
employment is terminated by the employee subsequent to one of the following events (each a “Good
Reason”): (i) a material diminution of the employee’s authority, duties, responsibilities or
status; (ii) a material diminution in the authority, duties, responsibilities or status of the
supervisor to whom the employee is required to report, including, but not limited to, a requirement
that the employee report to a company officer (or subordinate employee) instead of directly to the
Board of Supervisors; (iii) a reduction of 5% or greater in
the employee’s base annual salary, or a failure to provide the employee with the opportunity
to participate, on terms no less favorable than those existing immediately prior to the Change in
Control, in any incentive bonus, savings, pension or other employee benefit plan of Suburban in
effect immediately prior to the Change in Control (or successor plans and benefits which are, in
the aggregate, no less favorable to the employee than those plans and benefits available to the
employee immediately prior to the Change in Control); or (iv) a requirement, without the employee’s
consent, that the employee be based more than 35 miles from his or her present office location if,
and only if, the new location is farther from the employee’s place of residence than the office in
which the employee performed services for Suburban or its affiliates prior to the Change in
Control. The term “willful malfeasance in office” shall require a finding with respect to the
circumstances under consideration that the employee did not act in a manner he or she reasonably
believed to be in, or not opposed to, the best interests of Suburban.

Prior to voluntary termination of employment for any of the four Good Reasons listed in
subsection (b) of the preceding paragraph, and within 90 days of first becoming aware that one or
more such Good Reasons has occurred, the employee must notify the Vice President or other highest
ranking individual in charge of Human Resources, by certified mail, of such event, informing him or
her that Suburban or, if applicable, a successor entity has 30 business days (the “Cure Period”)
from the date on which the notification was mailed to remedy such Good Reason.

If, for any reason, the twelve month anniversary of the Change in Control event occurs on, or
within 30 days following, the date the foregoing notification was mailed to the Vice President or
other highest ranking individual in charge of Human Resources, then the twelve-month severance
protection period provided under this Plan shall be extended until the expiration of ten business
days beyond the conclusion of the Cure Period.

“Change of Control” shall mean:

(a) 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

(b) 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

 

 

 

(c) 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 in Control, “Person” and “Beneficial
Ownership” have the meanings used for purposes of Section 13(d) or 14(d) of the Securities
Exchange Act of 1934, as amended, and “More than one Person Acting as a Group” has the same
meaning as set forth in Treasury Regulation 1.409A-3(i)(5)(v)(B).

Suburban shall also pay all legal fees and expenses incurred by an employee or former
employee, as the case may be, as a result of such employee’s or former employee’s enforcement of
any right or benefit under this Plan, unless a court or arbitrator finds that such employee’s or
former employee’s challenge was frivolous, in which case, Suburban and such employee or former
employee shall each bear their respective costs and expenses.

The administrator of this Plan shall be the Compensation Committee (the “Committee”) of the
Board of Supervisors of the Partnership. The Committee shall have absolute discretionary
authority to determine eligibility for benefits under the Plan and to otherwise construe the terms
of the Plan. All benefits under the Plan shall be paid out of the general assets of Suburban, and
no eligible employee shall have any interest in any specific asset of Suburban as a result of
participation in the Plan. The receipt of a benefit hereunder shall not cause an eligible employee
to be treated as an employee of the Company for any purpose beyond the date of the eligible
employee’s actual termination of employment.

This Plan may be amended, modified or terminated by the Committee, except that any termination
and any amendment or modification of this Plan adverse to the interests of employees eligible for
benefits hereunder shall not be effective for a period of one year after written notice thereof has
been circulated generally to the participants in the Plan at the time of such termination or
amendment. If Suburban shall merge with or consolidate with another entity, or transfer, sell or
lease all or substantially all of its assets to another entity, Suburban will require that such
successor entity assume the obligations of Suburban hereunder, and this Plan shall be binding upon
such entity whether or not expressly assumed by such entity.

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