Document:

Exhibit 4.9

 

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement (this “Agreement”),
dated as of 11 November 2020, (the “Effective Date”), is between Triterras Fintech Pte Ltd (the “Company”),
and Srinivas Koneru (the “Executive”) (collectively, the “Parties” and each, a “Party”).

 

RECITALS

 

The Company desires to employ the Executive, and the Executive
desires to be employed by the Company, on the terms and conditions set forth herein.

 

NOW, THEREFORE, the Parties agree as follows:

 

1. Employment.
(a) During the Employment Term, the Executive will serve as Chairman and Chief Executive Officer of Triterras, Inc. During the
Employment Term, the Executive will provide services to the Company and its subsidiaries and to Triterras, Inc. The Executive will
also serve as a member of the Board of Directors of Triterras, Inc. (the “Board”) for so long as he continues
to be nominated to serve as a member of the Board. The Executive will also serve as an officer or employee of any other member
of the Company Group, as may be reasonably requested from time to time by the Board on the terms and conditions set forth herein.

 

(a) The
employment relationship between the Company and the Executive will be governed by the applicable written employment policies and
practices of the Company Group, including those relating to ethics and business conduct, confidential information, expense reimbursement
and avoidance of conflicts (together, the “Company Policies”).

 

2. Employment
Term. The Executive or the Company, as applicable, shall provide the other with written notice of its or his intent to terminate
this Agreement and the Employment Term at least 30 days prior to the effective date of such termination, or within such longer
time frame as may be required by applicable law.

 

3. Position
and Duties of the Executive. The Executive will report directly to the Board, and have duties, responsibilities and authorities
commensurate with the Executive’s title and position, and such duties, responsibilities and authority as may be assigned
to the Executive from time to time by the Board. During the Employment Term, the Executive will devote the Executive’s best
efforts, full attention and energies to the business(es) of the Company Group and the performance of any of the Executive’s
duties as set forth herein.

 

4. Compensation.
(a) Base Salary. During the Employment Term, the Company will pay to the Executive a base salary per annum equal to US$1,035,000,
which will be reviewed annually, (as in effect from time to time, the “Base Salary”). The Base Salary will be
payable at the times and in the manner consistent with the Company Group’s policies regarding compensation of the Company
Group’s executives generally, but in no event less frequently than monthly, unless otherwise required by applicable law.

 

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(a) Short-Term
Performance Bonus. With respect to each fiscal year during the Employment Term, the Executive will be eligible to receive a
cash short-term performance bonus in accordance with the terms and conditions of the Company Group’s applicable short-term
performance bonus program, and subject to satisfaction of the applicable performance factors and service-based conditions (“Annual
Bonus”). The Executive’s initial target Annual Bonus will be equal to 100% of Base Salary, subject to adjustment
from time to time by the Company’s board of directors or a committee thereof.

 

(c)  Long
Term Incentive (“LTI”). Following the date on which the shares of common stock of Triterras, Inc. become listed
on the NASDAQ, the Executive will also be eligible to receive a long-term equity-based incentive award, based on the recommendations
of a compensation consultant, at a level consistent with market comparables identified by such compensation consultant based on
equity-based compensation awards provided to executives at peer companies with similar duties and responsibilities to Executive
(the “Initial Grant”). The Initial Grant will be subject to approval by the Board or a committee thereof and
finalization of the terms of the applicable equity compensation plan and award agreements. Details of the Initial Grant will be
shared in a separate agreement once ready.

 

5. Benefits.
(a) Employee Plans. During the Employment Term, the Executive will be eligible to participate in the Company-sponsored health,
medical, dental, vision, life insurance, retirement and other employee benefit plans applicable to senior executives of the Company
Group, in addition to any other plans or programs that may be required under applicable law.

 

(a) Vacation.
During the Employment Term, the Executive will be eligible to participate in the Company Group’s vacation, holiday and sick,
personal and other leave policies as are provided under the Company Group’s policies applicable to executives generally,
and any such policies as may be required under applicable law.

 

6. Expenses.
During the Employment Term, the Company will pay or reimburse the Executive for reasonable and necessary business expenses incurred
by the Executive during the Employment Term in connection with the Executive’s duties on behalf of the Company Group in accordance
with the Company’s travel and expense policy, as it may be amended from time to time, or any successor policy applicable
to executives of the Company Group, following submission by the Executive of reimbursement expense forms in a form consistent with
such expense policies.

 

7. Termination.
(a) Termination by the Company for Cause or Resignation by the Executive. If, during the Employment Term, the Executive’s
employment is terminated by the Company for Cause or the Executive resigns (other than a resignation for Good Reason), unless otherwise
required by applicable law, the Executive will not be eligible to receive Base Salary, to receive any Annual Bonus or to participate
in any employee plans with respect to future periods after the date of such termination or resignation, except for the right to
receive (i) accrued but unpaid Base Salary through the date of termination of employment, to be paid in accordance with the Company’s
normal payroll practice; (ii) to the extent required by applicable law, any accrued unused vacation or holiday time, to be paid
in accordance with the Company’s normal payroll practice; and (iii) any unreimbursed business expenses incurred by the Executive
prior to the date of termination, to be paid in accordance with the provisions of Section 7 (together, the “Accrued
Compensation and Benefits”).

 

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(b) Involuntary
Terminations: Termination by the Company Without Cause or by the Executive for Good Reason. If during the Employment Term,
(i) the Executive’s employment is terminated by the Company without Cause (other than death or Disability) or (ii) the Executive
terminates his employment for Good Reason, the Executive will be entitled to receive from the Company, in full satisfaction of
the Executive’s rights and any benefits the Executive is entitled to under this Agreement, any other employment arrangement
with the Company Group or otherwise, the following, subject to Section 7(d):

 

(i) The
Accrued Compensation and Benefits;

 

(ii) A
lump sum cash payment equal to two-times the Base Salary then in effect;

 

(iii) A
pro-rated Annual Bonus for the year of termination of employment, assuming achievement at the greater of target or actual performance
levels (measured as of the termination date), and pro-rated based on the number of days the Executive provided services to the
Company during the applicable performance period; and

 

(iv) To
the extent that healthcare continuation benefits are not otherwise required to be provided to Executive following termination of
employment under applicable law, a lump sum cash payment equal to the product of (A) 18 multiplied by (B) the employer portion
of the monthly cost of maintaining health benefits for the Executive (and the Executive’s spouse and eligible dependents)
as of the date of termination of employment under a group health plan of the Company Group.

 

(c) Termination
by Disability; Death. If the Executive becomes Disabled or dies during the Employment Term, the Executive’s employment
will terminate and the Executive will be entitled to receive from the Company:

 

(i) The
Accrued Compensation and Benefits; and

 

(ii) A
lump sum cash payment equal to 12 months of the Base Salary then in effect.

 

(d) Payment
Timing & Release Requirement. Any obligation of the Company to make any payment pursuant to Section 7(b) or (c) (other
than the payment of Accrued Compensation and Benefits) is conditioned upon the Executive (or his estate) first executing and delivering
to the Company an effective release of claims, or other settlement agreement, in a form provided by the Company (the “Release”),
within 59 days after the date of termination of employment, with all periods for revocation therein having expired. Subject to
the Executive’s compliance with the preceding sentence, all amounts payable, or other benefits set forth in this Section
7 (other than the payment of Accrued Compensation and Benefits) will be paid or provided on the 60th day following the
date of termination of employment.

 

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(e) Forfeiture.
Notwithstanding the foregoing, any right of the Executive to receive termination payments and benefits hereunder will, to the extent
permitted by applicable law, be forfeited if the Executive breaches Section 8 or 9; provided that, before invoking
this paragraph, the Company will provide the Executive a reasonable time (not to exceed 30 days) to respond to such assertion and,
to the extent curable, a right to cure such breach within such time.

 

(f) Upon
any termination of employment, Executive’s outstanding equity awards will be treated in accordance with the terms of the
applicable plan and award agreement(s).

 

8. Duty
of Loyalty. During the course, and as a result, of the Executive’s employment with the Company, the Executive will have
access to Confidential Information; the opportunity to gain close knowledge of, and possible influence over, customers, suppliers,
independent contractors and employees of the Company Group; possess in some measure the goodwill of the Company Group; and come
to possess an intimate knowledge of the business of the Company Group, including all of its policies, methods, personnel and operations.

 

(a) Confidentiality.
(i) The Executive acknowledges that, in the course of the Executive’s employment, the Executive will become familiar with
the trade secrets, confidential information and other proprietary information concerning the Company Group, including projects,
promotions, marketing plans and strategies, business plans or practices, business operations, employees, employment pay information
and data, research and development, intellectual property, trademarks, customer lists, pricing information, production and cost
data, compensation and fee information, accounting and financing data, and methods of design, distribution, marketing, service
or procurement, regardless of whether such information has been reduced to documentary form, which the Company and/or an Affiliate
treats as confidential or proprietary (collectively, the “Confidential Information”).

 

(i) The
Executive acknowledges and agrees that any and all Confidential Information will be received and held by the Executive in a confidential
capacity. The Executive will not, during the Employment Term and/or at any time thereafter, in any manner, whether directly or
indirectly, knowingly use for the Executive’s own benefit or the benefit of any other Person, or disclose, divulge, render
or offer, any Confidential Information, except on behalf of the Company in the course of the proper performance of the Executive’s
duties hereunder or unless otherwise required by applicable law.

 

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(b) Non-Competition.
(i) The Executive acknowledges that (A) the Executive’s services are of special, unique and extraordinary value to the Company
Group and (B) the Company Group’s ability to accomplish its purposes and to successfully compete in the marketplace depends
substantially on the skills and expertise of the Executive. The Executive acknowledges and agrees that the Company Group would
be irreparably damaged if the Executive were to not devote substantially all of the Executive’s business time and efforts
to the business and affairs of the Company Group during the Employment Term, or were to provide services to any business (whether
a corporation or a division of a corporation or similar business unit) which competes with any member of the Company Group.

 

(i) Unless
prohibited by applicable law, the Executive agrees that, During the Employment Term, and for a period of 12 months after the termination
date of employment (together, the “Restricted Period”), the Executive will not, whether alone or jointly, or
as an employee, officer, agent, partner, member, stockholder (except of not more than 2% of the outstanding stock of any listed
company), investor, consultant, advisor, or independent contractor, directly, indirectly or beneficially, irrespective of whether
compensation or other remuneration is provided, for the Executive’s own account or for the benefit of any other Person, engage
in any business or entity in the same field of commercial activities as any member of the Company Group, in any instance, anywhere
the Company Group conducts its commercial activities.

 

(c) Non-Solicitation.
Unless prohibited by applicable law, the Executive agrees that, during the Restricted Period, the Executive will not:

 

(i) hire,
solicit, encourage or otherwise induce any employee, consultant or independent contractor of any member of the Company Group, who
provided services to any member of the Company Group within the preceding six months, to terminate his or her employment or other
contractual relationship with any member of the Company Group; or

 

(ii) induce
or attempt to induce any Person which is a supplier, distributor, customer or otherwise a contracting party of any member of the
Company Group at any time during the applicable Restricted Period, to terminate or modify any written or oral agreement or understanding
with any member of the Company Group.

 

(d) Company
Property. All notes, lists, records, files, documents and other papers and other like items (and all copies, extracts and summaries
thereof), advertising, sales, manufacturers’ and other materials or articles or information, including data processing reports,
computer programs, software, customer information and records, business records, price lists or information, samples, or any other
materials or data of any kind furnished to the Executive by the Company Group or developed, made or compiled by the Executive on
behalf of the Company Group or at the Company Group’s direction or for the Company Group’s use or otherwise in connection
with the Executive’s employment hereunder, are and will remain the sole property of the Company Group, including in each
case all copies thereof in any medium, including computer tapes and other forms of information storage, but excluding materials
relating directly to the terms and conditions of the Executive’s employment and the Executive’s performance as an employee
of the Company Group (the “Company Property”). If any member of the Company Group requests the return of any
Company Property at any time during or at or after the date of termination of employment, the Executive will deliver all such Company
Property, including all copies of the same, to the Company as soon as practicable. The provisions of this paragraph apply during
and after the period when the Executive is an employee of the Company Group and will be in addition to (and not a limitation of)
any legally applicable protections of the Company Group’s interest in Confidential Information, trade secrets and the like.

 

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(e) Non-Disparagement.
At no time during or after the Employment Term will the Executive utter, issue or circulate publicly any false or disparaging statements,
remarks or rumors about any member of the Company Group and/or any of their respective businesses, or any of their respective officers,
employees, directors, agents or representatives; provided, however, that the Executive may make such statements as
are necessary to comply with any applicable law, regulatory guidance or ruling.

 

(f) The
Executive’s obligation of confidentiality will survive, regardless of any other breach of this Agreement or any other agreement,
by any Party, until and unless such Confidential Information has become, through no fault of the Executive, generally known to
the public. In the event that the Executive is required by applicable law, regulation, or court order to disclose any of the Confidential
Information, the Executive will promptly notify the Company prior to making any such disclosure to facilitate the Company Group
seeking a protective order or other appropriate remedy from the proper authority at its sole cost and expense, except where such
notice to the Company would not be required by applicable law.

 

(g) The
Executive acknowledges that a violation of the foregoing provisions of this Section 8 would cause irreparable harm to the
Company Group, and that the Company Group’s remedy at law for any such violation would be inadequate. In recognition of the
foregoing, in addition to any other relief afforded by law or this Agreement, including damages sustained by a breach of this Agreement
and any forfeitures under Section 7(e), and without the necessity or proof of actual damages or the posting of a bond, the
Company Group will have the right to enforce this Agreement by specific equitable remedies, which, to the extent permitted by applicable
law, will include temporary and permanent injunctions.

 

(h) If
a court or other tribune at any time determines that any restriction or limitation in this Section 8 is unreasonable or
unenforceable, it will be deemed amended so as to provide the maximum protection to the Company Group and be deemed reasonable
and enforceable by the court.

 

9. Developments.
(a) The Executive will make full and prompt disclosure to the Company Group of all inventions, improvements, discoveries, methods,
developments, software, mask works and works of authorship, whether patentable or copyrightable or not, (i) which relate to the
business(es) of the Company Group and have heretofore been created, made, conceived or reduced to practice by the Executive or
under the Executive’s direction or jointly with others, and not assigned to prior employers, or (ii) which have utility in
or relate to the Company Group’s business(es) and are created, made, conceived or reduced to practice by the Executive or
under the Executive’s direction or jointly with others during the Executive’s employment with the Company Group, whether
or not during normal working hours or on the premises of the Company Group (all of the foregoing of which are collectively referred
to in this Agreement as “Developments”).

 

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(a) The
Executive agrees to assign and hereby assigns to the Company Group (or any Person designated by the Company Group) all of the Executive’s
rights, title and interest worldwide in and to all Developments and all related patents, patent applications, copyrights and copyright
applications, and any other applications for registration of a proprietary right. This paragraph will not apply to Developments
that the Executive developed entirely on the Executive’s own time without using the Company Group’s equipment, supplies,
facilities or Confidential Information and that does not, at the time of conception or reduction to practice, have utility in or
relate to the Company Group’s business(es), or actual or demonstrably anticipated research or development. To the extent
this Agreement is construed in accordance with the laws of any jurisdiction which precludes a requirement in an employee agreement
to assign certain classes of inventions made by an employee, this paragraph will be interpreted not to apply to any invention which
a court rules or the Company agrees falls within such classes but will be interpreted to apply thereto to the maximum extent legally
permissible.

 

(b) The
Executive will cooperate fully with the Company Group, both during and after the Executive’s employment with the Company
Group, with respect to the procurement, maintenance and enforcement of copyrights, patents and other intellectual property rights
(both in the United States and other countries) relating to Developments. The Executive will not be required to incur or pay any
costs or expenses in connection with the rendering of such cooperation. The Executive will sign all papers, including copyright
applications, patent applications, declarations, oaths, formal assignments, assignments of priority rights, and powers of attorney,
and do all things that the Company Group may deem necessary or desirable in order to protect its rights and interests in any Development.
If any member of the Company Group is unable, after reasonable effort, to secure the Executive’s signature on any such papers,
any executive officer of the Company is expressly authorized to execute any such papers as the Executive’s agent and attorney-in-fact,
coupled with interest, and the Executive hereby irrevocably designates and appoints each executive officer of the Company as the
Executive’s agent and attorney-in-fact to execute any such papers on the Executive’s behalf and to take any and all
other actions as the Company Group may deem necessary or desirable in order to protect its rights and interests in any Development,
under the conditions described in this sentence.

 

10. Remedies.
The Executive and the Company acknowledge that the covenants contained in Sections 8 and 9 are reasonable under the circumstances.
Accordingly, if, in the opinion of any court of competent jurisdiction, any such covenant is not reasonable in any respect, such
court will have the right, power and authority to sever or modify any provision or provisions of such covenants as to the court
will appear not reasonable and to enforce the remainder of the covenants as so amended. The Executive further acknowledges that
the remedy at law available to the Company Group for breach of any of the Executive’s obligations under Sections 8 and
9 would be inadequate and that damages flowing from such a breach may not readily be susceptible to being measured in monetary
terms. Accordingly, in addition to any other rights or remedies that the Company Group may have at law, in equity or under this
Agreement, upon proof of the Executive’s violation of any such provision of this Agreement, the Company Group will be entitled
to seek injunctive relief and may seek to obtain a temporary order restraining any threatened or further breach, unless prohibited
under applicable law.

 

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11. Other
Agreements, Entire Agreement, Etc. No agreements or representations or warranties, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by any Party which are not expressly set forth in this Agreement. This Agreement
contains the entire agreement of the Parties with respect to the subject matter hereof and supersedes all prior agreements and
understandings relating to the subject matter hereof. Nothing herein will be deemed to provide the Executive a right to remain
an officer or employee of any member of the Company Group.

 

12. Withholding
of Taxes. The Company will have the right to withhold from any amount payable hereunder any federal, state, city, local or
other taxes in order for the Company Group to satisfy any withholding tax obligation it may have under any applicable law, regulation
or ruling.

 

13. Successors
and Binding Agreement. (a) This Agreement will be binding upon and inure solely to the benefit of the Company Group, and shall
not otherwise be assignable or delegable by the Company except with the prior written consent of the Executive. For the avoidance
of doubt, the Company shall not be permitted to assign this Agreement, and may not assign its rights or delegate its duties hereunder,
to any Person acquiring directly or indirectly all or substantially all of the business or
assets of the Company whether by purchase, merger, consolidation, reorganization or otherwise, or to any Person who acquires
all of the voting stock of the Company or becomes a successor to the Company, in each case, without the prior written consent of
Executive.

 

(a) This
Agreement will inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees and legatees.

 

14. Notices.
Any notice, demand, claim or other communication under this Agreement will be in writing and will be deemed to have been given
(a) on delivery if delivered personally; (b) on the date on which delivery thereof is guaranteed by the carrier if delivered by
a national courier guaranteeing delivery within a fixed number of days of sending; or (c) on the date of transmission thereof if
delivery is confirmed, but, in each case, only if addressed to the Parties in the following manner at the following addresses (or
at the other address as a Party may specify by notice to the other) to the Company, to the attention of the General Counsel at
its principal executive offices, and to the Executive, at the Executive’s principal residence as set forth in the employment
records of the Company.

 

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15. Governing
Law. This Agreement will be construed and enforced according to the laws of Singapore. Notwithstanding anything in this Agreement
to the contrary, if any provision(s) of this Agreement are contrary to, or would be prohibited under, the local law(s) applicable
to the Executive, then such provision(s) shall be interpreted to conform to such applicable local law to the maximum extent legally
permissible in such jurisdiction.

 

16. Validity/Severability.
The Parties agree that (a) the provisions of this Agreement will be severable in the event that for any reason whatsoever any of
the provisions hereof are invalid, void or otherwise unenforceable, (b) any such invalid, void or otherwise unenforceable provisions
will be replaced by other provisions which are as similar as possible in terms to such invalid, void or otherwise unenforceable
provisions but are valid and enforceable, and (c) the remaining provisions will remain valid and enforceable to the fullest extent
permitted by applicable law.

 

17. Survival.
The obligations of the Company and the Executive under this Agreement which by their nature may require either partial or total
performance after the expiration or termination of the Employment Term or this Agreement (including those under Sections 8,
9, and 10) will survive any termination or expiration of this Agreement.

 

18. Amendment;
Waiver. (a) This Agreement may be amended and any provision of this Agreement may be waived, provided that any such amendment
or waiver will be binding upon a Party only if such amendment or waiver is set forth in a writing executed by such Party. No course
of dealing between the Parties will be deemed effective to modify, amend or discharge any part of this Agreement or any rights
or obligations of any Party under or by reason of this Agreement.

 

(a) No
delay or failure in exercising any right, power or remedy hereunder will affect or operate as a waiver thereof; nor will any single
or partial exercise thereof or any abandonment or discontinuance of steps to enforce such a right, power or remedy preclude any
further exercise thereof or of any other right, power or remedy.

 

19. Counterparts.
This Agreement may be executed in multiple counterparts (any one of which need not contain the signatures of more than one Party),
each of which will be deemed to be an original but all of which taken together will constitute one and the same agreement. This
Agreement, and any amendments hereto, to the extent signed and delivered by means of a facsimile machine or other electronic transmission,
will be treated in all manner and respects as an original agreement and will be considered to have the same binding legal effects
as if it were the original signed version thereof delivered in person.

 

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20. Headings;
Interpretation. (a) The descriptive headings herein are inserted for convenience of reference only and are not intended to
be a substantive part of or to affect the meaning or interpretation of this Agreement.

 

(a) Reference
to any agreement, document, or instrument means such agreement, document, or instrument as amended or otherwise modified from time
to time in accordance with the terms thereof, and if applicable hereof. Unless otherwise indicated, any reference to a “Section”
means a Section of this Agreement.

 

(b) In
the event an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by
the Parties, and no presumption or burden of proof will arise favoring or disfavoring any Party by virtue of the authorship of
any of the provisions of this Agreement.

 

(c) The
word “including” (in its various forms) means including without limitation. All references in this Agreement to “days”
refer to “calendar days” unless otherwise specified.

 

21. Excise
Tax. (a) Notwithstanding any other provisions in this Agreement, in the event that any payment or benefit received or to be
received by the Executive (including any payment or benefit received in connection with a change in control of the Company or the
termination of the Executive’s employment, whether pursuant to the terms of this Agreement or any other plan, program, arrangement
or agreement) (all such payments and benefits, together, the “Total Payments”) would be subject (in whole or
part), to any excise tax imposed under Section 4999 of the Code, or any successor provision thereto (the “Excise Tax”),
then, after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other
plan, program, arrangement or agreement, the Company will reduce the Total Payments to the extent necessary so that no portion
of the Total Payments is subject to the Excise Tax (but in no event to less than zero); provided, however, that the
Total Payments will only be reduced if (i) the net amount of such Total Payments, as so reduced (and after subtracting the net
amount of federal, state, municipal and local income taxes on such reduced Total Payments and after taking into account the phase
out of itemized deductions and personal exemptions attributable to such reduced Total Payments), is greater than or equal to (ii)
the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state, municipal
and local income taxes on such Total Payments and the amount of Excise Tax to which the Executive would be subject in respect of
such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable
to such unreduced Total Payments).

 

(b) In the case of a reduction in the Total Payments, the Total
Payments will be reduced in the following order: (i) payments that are payable in cash that are valued at full value under Treasury
Regulation Section 1.280G-1, Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable last reduced
first; (ii) payments and benefits due in respect of any equity valued at full value under Treasury Regulation Section 1.280G-1,
Q&A 24(a), with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1,
Q&A 24) will next be reduced; (iii) payments that are payable in cash that are valued at less than full value under Treasury
Regulation Section 1.280G-1, Q&A 24, with amounts that are payable last reduced first, will next be reduced; (iv) payments
and benefits due in respect of any equity valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24,
with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will
next be reduced; and (v) all other non-cash benefits not otherwise described in clauses (ii) or (iv) will be next reduced pro-rata.
Any reductions made pursuant to each of clauses (i)-(v) above will be made in the following manner: first, a pro-rata reduction
of cash payment and payments and benefits due in respect of any equity not subject to Section 409A, and second, a pro-rata reduction
of cash payments and payments and benefits due in respect of any equity subject to Section 409A as deferred compensation.

 

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(c) For purposes of determining whether
and the extent to which the Total Payments will be subject to the Excise Tax: (i) no portion of the Total Payments the receipt
or enjoyment of which the Executive shall have waived at such time and in such manner as not to constitute a “payment”
within the meaning of Section 280G(b) of the Code will be taken into account; (ii) no portion of the Total Payments will be taken
into account which, in the opinion of tax counsel (“Tax Counsel”) reasonably acceptable to the Executive and selected
by the accounting firm which was, immediately prior to the change in control, the Company’s independent auditor (the “Auditor”),
does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by reason
of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments will be taken into
account which, in the opinion of Tax Counsel, constitutes reasonable compensation for services actually rendered, within the meaning
of Section 280G(b)(4)(B) of the Code, in excess of the “base amount” (as set forth in Section 280G(b)(3) of the Code)
that is allocable to such reasonable compensation; and (iii) the value of any non-cash benefit or any deferred payment or benefit
included in the Total Payments will be determined by the Auditor in accordance with the principles of Sections 280G(d)(3) and (4)
of the Code.

 

(d) At the time that payments are made under
this Agreement, the Company will provide the Executive with a written statement setting forth the manner in which such payments
were calculated and the basis for such calculations, including any opinions or other advice the Company received from Tax Counsel,
the Auditor, or other advisors or consultants (and any such opinions or advice which are in writing will be attached to the statement).
If the Executive objects to the Company’s calculations, the Company will pay to the Executive such portion of the Total Payments
(up to 100% thereof) as the Executive determines is necessary to result in the proper application of this Section 21. All determinations
required by this Section 21 (or requested by either the Executive or the Company in connection with this Section 21) will be at
the expense of the Company. The fact that the Executive’s right to payments or benefits may be reduced by reason of the limitations
contained in this Section 21 will not of itself limit or otherwise affect any other rights of the Executive under this Agreement.

 

22. Compliance
with Section 409A. (a) The Parties intend that any amounts payable under this Agreement, and the Company’s and the Executive’s
exercise of authority or discretion hereunder, comply with the provisions of Section 409A of the Code, along with the rules, regulations
and guidance promulgated thereunder by the Department of the Treasury or the Internal Revenue Service (collectively, “Section
409A”) so as not to subject the Executive to the payment of the additional tax, interest or penalty which may be imposed
under Section 409A. In furtherance thereof, to the extent that any provision of this Agreement would result in the Executive being
subject to payment of additional tax, interest or penalty under Section 409A, the Parties agree to amend this Agreement if permitted
under Section 409A in a manner which does not impose any additional taxes, interest or penalties on Executive in order to bring
this Agreement into compliance with Section 409A, without materially changing the economic value of the arrangements under this
Agreement to any Party, and thereafter the Parties will interpret its provisions in a manner that complies with Section 409A. Notwithstanding
the foregoing, no particular tax result for the Executive with respect to any income recognized by the Executive in connection
with this Agreement is guaranteed.

 

    11

    

    

 

(b) Notwithstanding any provisions of this Agreement to the
contrary, if the Executive is a “specified employee” (within the meaning of Section 409A and determined pursuant to
any policies adopted by the Company consistent with Section 409A), at the time of the Executive’s “Separation From
Service” (within the meaning of Section 409A) and if any portion of the payments or benefits to be received by the Executive
upon Separation From Service would be considered deferred compensation under Section 409A and cannot be paid or provided to the
Executive without the Executive incurring taxes, interest or penalties under Section 409A, amounts that would otherwise be payable
pursuant to this Agreement and benefits that would otherwise be provided pursuant to this Agreement, in each case, during the six-month
period immediately following the Executive’s Separation From Service will instead be paid or made available on the earlier
of (i) the first business day of the seventh month following the date of Executive’s Separation From Service or (ii) the
Executive’s death.

 

(c) With respect to any amount of expenses eligible for reimbursement
or the provision of any in-kind benefits under this Agreement, to the extent such payment or benefit would be considered deferred
compensation under Section 409A or is required to be included in the Executive’s gross income for federal income tax purposes,
such expenses (including expenses associated with in-kind benefits) will be reimbursed by the Executive no later than December
31st of the year following the year in which the Executive incurs the related expenses. In no event will the reimbursements or
in-kind benefits to be provided by the Company in one taxable year affect the amount of reimbursements or in-kind benefits to be
provided in any other taxable year, nor will the Executive’s right to reimbursement or in-kind benefits be subject to liquidation
or exchange for another benefit.

 

(d) Each payment under this Agreement is intended to be a “separate
payment” and not one of a series of payments for purposes of Section 409A.

 

(e) A termination of employment will not be deemed to have occurred
for purposes of any provision of this Agreement providing for the payment of any amounts or benefits subject to Section 409A upon
or following a termination of employment unless such termination is also a Separation From Service, and notwithstanding anything
contained herein to the contrary, the date on which such Separation From Service takes place will be the termination date.

 

    12

    

    

 

23. Defined
Terms. In addition to the terms defined elsewhere herein, the following terms will have the following meanings when used herein
with initial capital letters:

 

(a) “Affiliate”
means, as to any Person, any other Person that directly or indirectly controls, or is controlled by, or is under common control
with, such Person. For this purpose, “control” (including, with its correlative meanings, “controlled by”
and “under common control with”) will mean the possession, directly or indirectly, of the power to direct or cause
the direction of management or policies of a Person, whether through ownership of securities or partnership or other ownership
interests, by contract or otherwise. Unless otherwise indicated, an Affiliate refers to an Affiliate of the Company.

 

(b) “Cause”
means:

 

(i) Any
act or omission constituting a material breach by the Executive of any provisions of this Agreement;

 

(ii) The
willful failure by the Executive to perform the Executive’s duties hereunder (other than any such failure resulting from
the Executive’s Disability), after demand for performance is delivered by the Company that identifies in reasonable detail
the manner in which the Company believes the Executive has not performed the Executive’s duties, if, within 30 days of such
demand, the Executive fails to cure any such failure that is capable of being cured;

 

(iii) Any
misconduct by the Executive that is materially injurious to any member of the Company Group, financial or otherwise, or any act
of misappropriation, fraud including with respect to any member of the Company Group’s accounting and financial statements,
embezzlement or conversion by the Executive of the property of any member of the Company Group;

 

(iv) The
conviction (or plea of no contest) of the Executive for any felony or the indictment of the Executive for any felony; or

 

(v) The
Executive’s gross negligence, gross neglect of duties or gross insubordination;

 

(c) 
“Company Group” means the Company and its Affiliates.

 

(d) “Disability”
or “Disabled” means the Executive’s incapacity due to physical or mental illness to substantially perform
the Executive’s duties and the essential functions of the Executive’s position, with or without reasonable accommodation,
on a full-time basis for 12 months.

 

(e) “Employment
Term” means the period during which the Executive remains employed by the Company under this Agreement.

 

    13

    

    

 

(f) “Good
Reason” means the occurrence of any of the following events, in each case, without the Executive’s consent:

 

(i) A
material diminution in the Executive’s Base Salary, other than a general reduction in Base Salary that affects all similarly
situated Company executives in substantially the same proportions;

 

(ii) A
material diminution in the Executive’s authority, duties, or responsibilities (other than temporarily while the Executive
is physically or mentally incapacitated or as required by applicable law); or

 

(iii) Any
material breach by the Company of this Agreement (including any breach of Section 13);

 

provided, however, that the
foregoing conditions will constitute Good Reason only if (A) the Executive provides written notice to the Company within 90 days
of the initial existence of the condition(s) constituting Good Reason and (B) the Company fails to cure such condition(s) within
30 days after receipt from the Executive of such notice; and provided further, that Good Reason will cease to exist with
respect to a condition one year following the initial existence of such condition.

 

(g) 
“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint
stock company, a trust, a joint venture or an unincorporated organization.

 

24. Acknowledgements.
The Executive acknowledges and agrees that (i) the Executive has read this Agreement carefully and in its entirety, (ii) the Executive
understands the terms and conditions contained herein, (iii) the Executive has had the opportunity to review this Agreement with
legal counsel of the Executive’s own choosing and has not relied on any statements made by the Company or its legal counsel
as to the meaning of any term or condition contained herein or in deciding whether to enter into this Agreement, and (iv) the Executive
is entering into this Agreement knowingly and voluntarily. The Executive acknowledges and agrees that each member of the Company
Group is an intended third party beneficiary of this Agreement and, as such, will be entitled to all of the benefits, and will
be permitted to enforce its rights, under this Agreement as if such third party were an original party hereto, unless otherwise
precluded by applicable law. As an inducement to enter into this Agreement, the Executive represents and warrants as follows: (A)
the Executive is not a party to any other agreement or obligation for personal services; (B) there exist no impediments or restraints,
contractual or otherwise on the Executive’s power, right or ability to enter into this Agreement and to perform the Executive’s
duties and obligations hereunder; and (C) the performance of the Executive’s obligations under this Agreement do not and
will not violate or conflict with any agreement relating to confidentiality, non-competition or exclusive employment to which the
Executive is or was subject.

 

[Remainder of Page Intentionally Left Blank]

 

    14

    

    

 

IN WITNESS WHEREOF, this Agreement is duly
executed as of the Effective Date.

 

	 	Triterras Fintech Pte. Ltd.:
	 	 
	 	By:	/s/ Karen Cheong
	 	Name: 	Karen Cheong
	 	Title:	Head of HR
	 	 
	 	Executive:
	 	 
	 	/s/ SrinivasKoneru
	 	Srinivas Koneru

 

15sph-ex101_7.htm

 

Exhibit 10.1

SUBURBAN PROPANE, L.P. 

2021 LONG TERM INCENTIVE PLAN 

EFFECTIVE AS OF SEPTEMBER 27, 2020 

ARTICLE I 

PURPOSE AND APPROVAL 

The purpose of this Plan is to grow and strengthen Suburban Propane Partners, L.P., Suburban Propane, L.P., and their affiliates, by providing an incentive compensation opportunity to certain Participants (as hereinafter defined), and thereby encouraging them to devote their abilities and experience to the success of the Partnership’s business enterprise in such a manner as to increase the distributable cash flow of the Partnership in order to support the long-term growth and sustainability of the Partnership, and to enhance the returns to its Unitholders. It is intended that this purpose be achieved by extending to certain Participants added long-term incentive compensation opportunities for continued service to the Partnership and for achieving certain Performance Measures (as hereinafter defined) over a multi-year Measurement Period (as hereinafter defined). This Plan is hereby adopted effective September 27, 2020 and will govern all grants made subsequent to the Partnership’s fiscal year ended September 26, 2020.  The adoption of this Plan shall have no effect on outstanding grants under the Suburban Propane, L.P. 2014 Long Term Incentive Plan (as amended from time to time) made on or prior to September 26, 2020, which grants shall remain in full force and effect subject to the terms, conditions and restrictions set forth in the 2014 Long Term Incentive Plan document.

ARTICLE II 

DEFINITIONS 

For purposes of this Plan, capitalized terms shall have the following meanings: 

2.1 “Actual Distributable Cash Flow” shall be calculated as the Adjusted EBITDA for a respective Fiscal Year, less maintenance capital expenditures, cash interest expense and the current provision for income taxes, plus or minus any unusual items as determined by the Committee, each as reported by the Partnership in its annual report on Form 10-K filed with the Securities and Exchange Commission for a respective Fiscal Year. 

2.2 “Adjusted EBITDA” represents net income before deducting interest expense, income taxes, depreciation and amortization expense, excluding non-cash unrealized gains and losses and certain other items, as approved by the Committee.

2.3 “Affiliate” shall mean any corporation, partnership, limited liability company, or other entity that, directly, or indirectly though one or more intermediaries, controls, or is controlled by, or is under common control with, the Partnership.  For this purpose, “control” (including, with its correlative meanings, “controlled by” and “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management or policies of a Person, whether through the ownership of Voting Securities, by contract or otherwise.

2.4 “Annual Target Cash Bonus” shall mean the target cash bonus for each respective Participant under the Partnership’s annual cash bonus plan. 

2.5 “Average Distributable Cash Flow” shall be the average of the Actual Distributable Cash Flow for a Measurement Period.

2.6 “Baseline Distributable Cash Flow” shall be the average of the Actual Distributable Cash Flow for the three Fiscal Years immediately preceding each Measurement Period. 

2.7 “Base Salary” shall mean the salary paid by the Partnership to a Participant for services rendered, excluding bonuses, fringe benefits, unused sick/personal days or vacation days, any profit realized upon the acquisition or sale of any Common Units acquired under any equity award, payments under a nonqualified deferred compensation plan, income imputed on below market loans, severance pay, any amounts paid or accrued as a contribution to a profit-sharing plan, pension plan, welfare plan or group insurance plan, or non-elective contributions to a deferred compensation plan or any other employee benefit plan maintained by the Partnership, 

1

 

except that Base Salary shall include salary reduction contributions to a plan established by the Partnership under Internal Revenue Code of 1986 (“Code”) Sections 401(k), 125 or 132(f). 

2.8 “Beneficial Ownership” shall have the same meaning as that term is used within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended. 

2.9 “Beneficiary” shall mean a Participant’s Beneficiary pursuant to Article VIII. 

2.10 “Board” shall mean the Board of Supervisors of Suburban Propane Partners, L.P. 

2.11 “Cause” shall mean (a) a Participant’s gross negligence or willful misconduct in the performance of his or her duties, (b) a Participant’s willful or grossly negligent failure to perform his or her duties, (c) the breach by a Participant of any written covenants to the Partnership,  (d) dishonest, fraudulent or unlawful behavior by a Participant (whether or not in conjunction with employment) or a Participant being subject to a judgment, order or decree (by consent or otherwise) by any governmental or regulatory authority which restricts his or her ability to engage in the business conducted by the Partnership, or any of its affiliates, or (e) willful or reckless breach by a Participant of any policy adopted by the Partnership concerning conflicts of interest, standards of business conduct, fair employment practices or procedures with respect to compliance with applicable laws.  For purposes of the Plan, no act or failure to act on a Participant’s part will be considered “willful” unless done, or omitted to be done, by a Participant not in good faith or without a reasonable belief that the action or omission was in the best interests of the Partnership. 

 

2.12 “Change in Capitalization” shall mean any increase or reduction in the number of Common Units, or any change in the Common Units, change in the percentage ownership interest of the Partnership attributable to the Common Units or exchange of Common Units for a different number or 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 dividends, property dividend, combination or exchange of units, repurchase of units, change in corporate structure or otherwise. 

2.13 “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 Affiliates) 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 Affiliates 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 the consummation of (x) 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 Affiliate, any employee benefit plan (or any trust forming a part thereof) maintained by the Partnership, any Affiliate, 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 the 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; 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 an 

2

 

Affiliate). For this purpose, gross fair market value means the value of the assets of the Partnership, or the value of the assets being disposed of, determined without regard to any liability associated with such assets. A transaction described in clause (A) or (B) of subsection (x) hereof shall be referred to as a “Non-Control Transaction;” or 

(c) the date a majority of the members of the Board are replaced during any twelve (12) 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.  In addition, so long as Section 409A of the Code (or any successor provision thereto) remains in effect, notwithstanding anything herein to the contrary, none of the foregoing events shall be deemed to be a “Change of Control” unless such event constitutes a “change in control event” within the meaning of Section 409A of the Code and the regulations and guidance promulgated thereunder. 

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

2.15 “Common Unit” shall mean each of the common units representing publicly traded limited partnership interests of the Partnership. 

2.16 “Disability” shall have the same meaning that such term (or similar term) has under the long-term disability plan in which the Participant is eligible to be covered. 

2.17 “Distributable Cash Flow Component” shall have the meaning set forth in Article 5.3.

2.18 “Effective Date” shall mean September 27, 2020. 

2.19 “Fair Market Value of Partnership’s Common Units” as of a specific date shall be equal to the twenty (20) day average of the closing prices preceding that date. 

2.20 “Fiscal Year” shall mean the fiscal year adopted by the Partnership. 

2.21 “General Partner” shall have the meaning set forth in the Partnership Agreement. 

2.22 “Good Reason” shall mean (a) any failure by the Partnership to comply in any material respect with the compensation provisions of a written employment agreement between a Participant and the Partnership, (b) a material adverse change in a Participant’s title without his or her consent, or (c) the assignment to a Participant, without his or her consent, of duties and responsibilities materially inconsistent with his or her position’s level of responsibility. 

2.23 “Measurement Period” shall have the same meaning as set forth in Article 5.2. 

2.24 “More than one Person Acting as a Group” shall have the same meaning as set forth in Treasury Regulation 1.409A-3(i)(5)(v)(B). 

2.25 “Operating/Strategic Objective Component” shall have the meaning set forth in Article 5.3.

2.26 “Operating/Strategic Objectives” shall mean the objectives selected by the Committee at the beginning of each Measurement Period to be used by the Committee to determine the amount to be earned by the Participants for the Operating/Strategic Objective Component.

3

 

2.27 “Participant” shall mean an employee of Suburban Propane, L.P. or of a Subsidiary designated by the Committee to participate in the Plan. 

2.28 “Partnership” shall mean collectively Suburban Propane, L.P. and Suburban Propane Partners, L.P., Delaware limited partnerships, and their successors. 

2.29 “Partnership Agreement” shall mean the Third Amended and Restated Agreement of Limited Partnership of Suburban Propane Partners, L.P., as amended, or any succeeding agreements of limited partnership of Suburban Propane Partners, L.P. 

2.30 “Performance Measures” shall have the same meaning as set forth in Article 5.3. 

2.31 “Performance Scale” shall be the range of potential payout percentages corresponding to the Average Distributable Cash Flow for each respective three-year Measurement Period associated with the Distributable Cash Flow Component determined in accordance with Article 5.3.

2.32 “Person” shall have the same meaning as that term is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended. 

2.33 “Phantom Unit Distributions” shall have the same meaning as set forth in Article 5.4.

 

2.34 “Plan” shall mean this Suburban Propane, L.P. 2021 Long Term Incentive Plan, as may be amended from time to time. 

2.35 “Retirement” shall mean voluntary termination of employment by a Participant who has attained age 55 and who has completed ten (10) years of “eligible service” to the Partnership or its predecessors, in connection with a bona fide intent by the Participant 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 Participant in response to, or anticipation of, a termination of employment for Cause by the Partnership or one of its affiliates. The term “eligible service” shall have the same meaning as the term is used in the Pension Plan for eligible Employees of Suburban Propane L.P. and Subsidiaries. 

2.36 “Subsidiary” shall mean 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. 

2.37 “Supervisor” shall mean a member of the Board. 

2.38 “Target Grant” shall have the same meaning as set forth in Article 5.1. 

2.39 “Unitholders” shall mean the Persons holding Common Units. 

2.40 “Unvested Phantom Units” shall mean a hypothetical number of units arrived at by dividing the Target Grant established upon commencement of the Measurement Period by the Fair Market Value of Partnership Common Units on the first day of the Measurement Period. If the market is closed on the first day of the Measurement Period then the Fair Market Value on the next business day shall be used. 

2.41 “Vested Phantom Units” shall mean the quantity of a Participant’s Unvested Phantom Units which are earned upon culmination of the Measurement Period. 

ARTICLE III 

PARTICIPATION 

Only those Participants designated from time to time by the Committee shall participate in the Plan and receive Target Grants hereunder. 

ARTICLE IV 

ADMINISTRATION 

4.1 Administration by the Committee. 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 

4

 

minutes of its meetings. A quorum shall consist of not less than two members of the Committee and such 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. No member of the Committee 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 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. 

4.2 Powers of the Committee. Subject to the express terms and conditions set forth herein, the Committee shall have the power, from time to time to: 

(a) select those Participants for whom Target Grants shall be established; 

(b) construe and interpret the Plan, the Actual Distributable Cash Flow, the Average Distributable Cash Flow, the Baseline Distributable Cash Flow, the Distributable Cash Flow Component, the Operating/Strategic Objectives, the Operating/Strategic Objectives Component, the Target Grants, the Unvested and Vested Phantom Units and corresponding Phantom Unit Distributions, 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, in the manner and to the extent it shall deem necessary or advisable so that the Plan complies with applicable law and otherwise to make the Plan fully effective. 

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

 

 (d) 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. 

4.3 Decisions of the Committee are Final and Binding. The Committee’s decisions, actions, determinations and interpretations shall be final and binding upon the Partnership, all Participants, Beneficiaries, equity holders of the Partnership and any other Person. 

4.4 Change in Capitalization. In the event of any Change in Capitalization, any special distribution to the Common Unitholders or any other event which, in the opinion of the Committee, has a significant impact on the Average Distributable Cash Flow for any Measurement Period not anticipated by the Committee at the commencement of such Measurement Period, the Committee may adjust in a manner determined by the Committee in its sole discretion to be necessary and appropriate. 

ARTICLE V 

GRANTS 

5.1 Target Grant. The Committee shall establish a Target Grant for each Participant at the beginning of each Fiscal Year equal to a designated percentage of such Participant’s Base Salary, or Annual Target Cash Bonus, at the start of the Fiscal Year. Each Participant’s designated percentage shall be recorded in resolutions of the Committee. In the event a Participant’s Base Salary, or Annual Target Cash Bonus, for the respective Fiscal Year is adjusted within 120 days after the start of the Fiscal Year, the Target Grant will be computed using such adjusted Base Salary or Annual Target Cash Bonus. 

5.2 Measurement Period. This is a three Fiscal Year period commencing on the first day of the Fiscal Year during which the Target Grant was established and ending on the last day of the following third Fiscal Year. 

5.3 Performance Measures. The percentage of the Unvested Phantom Units that shall be earned and immediately converted to Vested Phantom Units at the end of the Measurement Period shall be determined based on the achievement of the Distributable Cash Flow Component and the Operating/Strategic Objective Component.  For each Measurement Period, seventy-five percent (75%) of the Unvested Phantom Units will be eligible to be earned based upon achievement of the Distributable Cash Flow Component and twenty-five percent (25%) of the Unvested 

5

 

Phantom Units will be eligible to be earned based upon achievement of the Operating/Strategic Objective Component.

(a) Distributable Cash Flow Component.   At the beginning of each new Measurement Period, the Committee shall establish the Performance Scale for the Distributable Cash Flow Component that will measure the Average Distributable Cash Flow for the Measurement Period.  The Performance Scale will include the minimum threshold, target threshold and maximum threshold levels of achievement of Average Distributable Cash Flow that will be used to determine the percentage, if any, of the Unvested Phantom Units attributable to the Distributable Cash Flow Component that will be converted into Vested Phantom Units at the end of the Measurement Period. The percentage of Unvested Phantom Units attributable to the Distributable Cash Flow Component that can be earned and converted into Vested Phantom Units will range from 50% for minimum threshold achievement to 150% for maximum threshold achievement.  In the event that Average Distributable Cash Flow for the Measurement Period is achieved between dollar thresholds in the Performance Scale, the percentage of Unvested Phantom Units that will be converted into Vested Phantom Units will be determined based on linear interpolation

 (b) Operating/Strategic Objectives Component.  At the beginning of each new Measurement Period, the Committee shall establish the Operating/Strategic Objectives that will measure the Partnership’s performance in achieving such Operating/Strategic Objectives for the Measurement Period.  At the end of the Measurement Period, the Committee will evaluate the Partnership’s achievement of the Operating/Strategic Objectives Component in order to determine the percentage, if any, of the Unvested Phantom Units attributable to the Operating/Strategic Objectives Component that will be converted into Vested Phantom Units at the end of the Measurement Period.  The Committee will determine in its sole discretion how much weight to place on any one, or several, of the Operating/Strategic Objectives in determining the percentage of the Unvested Phantom Units attributable to the Operating/Strategic Objectives Component that will become Vested Phantom Units at the end of the Measurement Period.  The percentage of Unvested Phantom Units attributable to the Operating/Strategic Objectives Component that can be earned and converted into Vested Phantom Units will be determined based on the following payout scale. 

 

Percentage of 

Operating/Strategic Objectives Component

      Earned  

Maximum Threshold      150%

      125%

Target Threshold      100%

         75%

Minimum Threshold        50%

 (c) Forfeiture.  If, at the end of the Measurement Period, the Committee determines that any portion of the Unvested Phantom Units has not been earned, the unearned portion of said Unvested Phantom Units shall be forfeited. 

5.4 Plan Distributions. At the end of each Measurement Period, the Committee will determine the percentage of the Participant’s Unvested Phantom Units that will become Vested Phantom Units based on the level of achievement of the Distributable Cash Flow Component and the Operating/Strategic Objectives Component established for such Measurement Period.  Upon vesting, each Participant will receive a cash payment equal to the quantity of his or her Vested Phantom Units multiplied by the Fair Market Value of the Partnership’s Common Units on the last date of the Measurement Period plus the Participant’s Phantom Unit Distributions. For this purpose, “Phantom Unit Distributions” means the Participant’s Vested Phantom Units multiplied by the cumulative per-Common Unit distribution declared and paid by the Partnership for each quarter over the course of the Measurement Period. In no event shall any payments be made hereunder in Common Units. 

ARTICLE VI 

VESTING 

6.1 Vesting Schedule. Subject to Articles 6.2 and 6.3, vesting is in accordance with Article 5.3. Notwithstanding anything in this Article VI to the contrary, the Committee may accelerate the vesting of Unvested 

6

 

Phantom Units and all accrued Phantom Unit Distributions at any time for any reason, but may not accelerate payment of any amounts hereunder except as expressly authorized hereunder.

6.2 Change of Control. Notwithstanding anything in this Plan to the contrary, upon a Change of Control occurring while the Participant is employed, the cash value of 150% of all Unvested Phantom Units multiplied by the price per Common Unit paid in the transaction that constitutes the Change of Control and a sum equal to 150% of the Unvested Phantom Units multiplied by an amount equal to the cumulative, per-Common Unit distribution declared from the beginning of the Measurement Period through the date on which a Change of Control occurred shall become fully vested and non-forfeitable and shall be paid to a Participant within thirty (30) days after the Change of Control. 

6.3 Forfeiture. Subject to Articles 6.2, 6.4 and 6.5, Unvested Phantom Units shall lapse and be forfeited upon the occurrence of either of the following events: (a) termination of the Participant’s employment or participation in the Plan for any reason, except under the circumstances provided in Articles 6.4 and 6.5; or (b) any attempted or completed transfer, sale, pledge, hypothecation, or assignment by the Participant of the Unvested Phantom Units. 

 

6.4 Disability or Death. Notwithstanding the provisions of Article 6.3, if a Participant’s employment terminates as a result of Disability or death, all Unvested Phantom Units and the Phantom Unit Distributions associated with said Unvested Phantom Units for such Participant shall vest in accordance with Articles 6.1 and 6.2, as applicable, and shall be paid in accordance with Article VII and VIII. 

6.5 Termination without Cause or for Good Reason. In the event a Participant’s employment by the Partnership is terminated by the Partnership without Cause or by the Participant for Good Reason, all Unvested Phantom Units and all Phantom Unit Distributions associated with said Unvested Phantom Units shall vest upon the next succeeding scheduled vesting date pursuant to Articles 6.1 or 6.2, as applicable, and shall be paid in accordance with Article VII and VIII. 

6.6 Notwithstanding anything in this Plan to the contrary, Target Grants 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, where the percentage of the Unvested Phantom Units derived from Target Grants subject to this Article 6.6 that are converted to Vested Phantom Units pursuant to Article 5.3 herein would have been lower had the vesting percentage been calculated based on the restated financial results, the Committee may review the circumstances surrounding the restatement and shall have the sole and absolute discretion and authority to determine whether to seek reimbursement of the amount, or some lesser portion thereof (without interest), by which certain Participants’ distributions under Article 5.4 of this Plan exceeded the lower payment that would have been made based on the restated financial results, regardless of the fault, misconduct or responsibility of any such Participants in the restatement. If the Committee determines that any fraud or intentional misconduct by a Participant was a contributing factor to the Partnership having to make a significant restatement, then, in addition to other disciplinary action, the Committee may require reimbursement of all, or any part, of the compensation paid to that Participant in excess of that Participant’s Base Salary, plus interest, including distributions made under the Plan, for the period of such restatement. This Article 6.6 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 Article 6.6, the Policy shall control. 

ARTICLE VII 

PAYMENTS 

The Plan Distributions associated with Vested Phantom Units earned by a Participant under the Plan shall be paid to the Participant as soon as reasonably possible following the culmination of the Measurement Period, but in no event later than the end of the calendar year in which the Measurement Period concluded, other than as provided in Section 6.2. 

 

 

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ARTICLE VIII 

BENEFICIARIES 

A Participant may at any time and from time to time prior to death designate one or more Beneficiaries to receive any payments to be made following the Participant’s death. If no such designation is on file with the Partnership at the time of a Participant’s death, the Participant’s Beneficiary shall be the beneficiary or beneficiaries named in the Beneficiary designation most recently filed by the Participant with the Partnership. If the Participant has not effectively designated a Beneficiary, or if no Beneficiary so designated has survived the Participant, the Participant’s Beneficiary shall be the Participant’s surviving spouse, or, if no spouse has survived the Participant, the estate of the deceased Participant. If an individual Beneficiary cannot be located for a period of one year following the Participant’s death, despite mail notification to the Beneficiary’s last known address, and if the Beneficiary has not made a written claim for benefits within such period to the Committee, the Beneficiary shall be deemed to have predeceased the Participant. The Committee may require such proof of death and such evidence of the right of any person to receive all or part of the benefit of a deceased Participant as the Committee may consider to be appropriate. The Committee may rely upon any direction by the legal representatives of the estate of a deceased Participant, without liability to any other person. If a Participant has designated his or her spouse as Beneficiary, upon entry of a judgment of divorce (or other evidence of formal dissolution of the marriage) the designation of the spouse as Beneficiary will be deemed to have been revoked, unless the Participant reaffirms such designation thereafter. 

ARTICLE IX 

TERMINATION AND AMENDMENT OF THE PLAN 

The Plan shall terminate by its terms on the day preceding the tenth (10th) anniversary of the Effective Date of this Plan as originally adopted and no Target Grant may be established thereafter. The previous sentence notwithstanding, the Board may, at any time and from time to time, amend, terminate, modify or suspend the Plan; provided, however, that, subject to Article XXI, no such amendment, modification, suspension or termination shall impair or adversely affect any Target Grants established for a Participant under the Plan, except with the consent of the Participant. Any amounts payable under the Plan in connection with a termination of the Plan shall either be made at the time otherwise provided herein or, in the Committee’s sole discretion, upon an earlier date to the extent permitted under Section 409A of the Code. 

 

ARTICLE X 

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 Common Units, and such arrangements may be either applicable generally or only in specific cases. 

ARTICLE XI 

LIMITATION OF LIABILITY 

As illustrative of the limitation 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 the establishment of a Target Grant other than at the sole discretion of the Committee; 

(b) give any person any rights whatsoever with respect to a Target Grant or Unvested Phantom Units except as specifically provided in the Plan. 

(c) limit in any way the right of the Partnership 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. 

 

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ARTICLE XII 

REGULATIONS AND OTHER APPROVALS; GOVERNING LAW 

12.1 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 laws of the State of New Jersey without giving effect to conflicts of law principles. 

12.2 Except as provided in Article IX hereof, the Board may make such changes to the Plan as may be necessary or appropriate to comply with the rules and regulations of any government authority. 

ARTICLE XIII 

WITHHOLDING OF TAXES 

At such time(s) as a Participant recognizes income for purposes of income, employment, or other tax liability, the Partnership shall withhold an amount equal to the federal, state and local taxes and other amounts as may be required by law to be withheld by the Partnership. 

ARTICLE XIV 

NO REQUIRED SEGREGATION OF ASSETS; UNFUNDED PLAN 

Neither the Partnership, nor any Subsidiary, shall be required to segregate any assets that may at any time be represented by Unvested Phantom Units, Vested Phantom Units or Phantom Unit Distributions made pursuant to the Plan. The Plan is an unfunded plan for incentive and deferred compensation.  With respect to any payments to which a Participant or his or her Beneficiary has a fixed and vested interest, but which are not yet made by the Partnership, nothing contained herein shall give any Participant or his or her Beneficiary any rights that are greater than those of a general unsecured creditor of the Partnership. 

ARTICLE XV 

RIGHT OF DISCHARGE RESERVED; NO RIGHT TO SAME BENEFITS

Neither the Plan, nor the establishment of any Target Grant, shall guarantee any Participant continued employment with the Partnership, or a Subsidiary, or guarantee the establishment of future Target Grants. The provisions applicable to Target Grants hereunder need not be the same with respect to each Participant. 

ARTICLE XVI 

NATURE OF PAYMENTS 

All Target Grants awarded and Phantom Unit Distributions made pursuant to the Plan are in consideration of services for the Partnership or its Subsidiaries. The Target Grants and Phantom Unit Distributions constitute a special incentive payment to the Participant and shall not be taken into account as compensation for purposes of any of the employee benefit plans of the Partnership or any Subsidiary except as may be determined by the Committee. 

 

ARTICLE XVII 

CONSTRUCTION OF PLAN 

The captions used in this Plan are for convenience only and shall not be construed in interpreting the Plan. Whenever the context so requires, the masculine shall include the feminine and neuter, and the singular shall also include the plural, and vice versa. 

ARTICLE XVIII 

SEVERABILITY 

If any provision of the Plan shall be held unlawful or otherwise invalid or unenforceable in whole or in part, the unlawfulness, invalidity or unenforceability of said provision shall not affect any other provision of the Plan or part thereof, each of which shall remain in full force and effect. 

 

 

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ARTICLE XIX 

DEFERRAL 

Payments under the Plan may not be deferred by the Participants. 

ARTICLE XX 

RETIREMENT OF PARTICIPANT 

Upon Retirement, a Participant shall not be eligible for any additional grants under the Plan; however, all Unvested Phantom Units and all Phantom Unit Distributions associated with said Unvested Phantom Units shall vest upon their normal scheduled vesting dates pursuant to Articles 6.1 or 6.2, as applicable, and shall be paid in accordance with Article VII and VIII. 

ARTICLE XXI 

CODE SECTION 409A 

Although the Partnership makes no guarantee with respect to the tax treatment of payments hereunder, the Plan is intended to comply with, or be exempt from, Section 409A of the Code and to the maximum extent permitted the Plan shall be limited, construed and interpreted in accordance with such intent. Accordingly, the Partnership reserves the right to amend the provisions of the Plan at any time and in any manner without the consent of Participants solely to comply with the requirements of Section 409A of the Code and to avoid the imposition of an excise tax under Section 409A of the Code on any payment to be made hereunder.  In no event whatsoever shall the Partnership be liable for any additional tax, interest or penalty that may be imposed on a Participant by Section 409A of the Code or any damages for failing to comply with or be exempt from Section 409A of the Code.

Whenever a payment hereunder specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Partnership. 

 

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