Document:

Termination Agreement, between Graham Packaging Company, L.P. & George Lane

 Exhibit 10.39 
 

 
  
  
 2401 Pleasant Valley Road 
 York, Pennsylvania 17402 
 Telephone: (717) 849-8500 
 Facsimile (717) 849-8541 
 March 27, 2009 
 George Lane 
 Dear George: 
 Your employment with the Company will be terminated effective April 24, 2009; this agreement confirms the terms
and conditions of your termination of employment from Graham. This agreement also is conditioned upon you maintaining its confidentiality, except with your spouse and attorney. 
 Severance 
 You may elect either fifty-seven (57) weeks of severance pay, which will be
paid to you weekly as salary continuation through May 29, 2010 or a lump sum payment equal to fifty-seven (57) weeks of severance pay, less applicable taxes. The weekly amount of severance pay will be determined by dividing your current annual
base salary by 2080 hours times 40. Any outstanding advances will be deducted from your severance pay. Additionally, you will be paid for all unused 2009 vacation. 
 Bonus: 
 You will be eligible for a prorated share of your incentive compensation for 2009,
payable on or about March 15, 2010. Any payout will be pro-rated for 4 months. The actual amount will be determined based on the actual achievement of the Incentive Program criteria. Failure to meet the minimum criteria under the Incentive
Program will result in no amount being paid. 
 Treatment of Equity Awards: 
 Upon your termination of employment on April 24, 2009, the options to purchase limited partnership units in Graham Packaging Holdings Company, L.P. (“Graham”) granted to you on
February 2, 1998, as such grant was amended on January 22, 2008 (the “1998 Grant”), January 1, 1999, as such grant was amended on December 22, 2008 (the “1999 Grant”), and March 7, 2008 (the “2008
Grant”) (collectively the “Options”) will vest and become exercisable and will be exercisable anytime beginning April 25, 2009 until either a Change in Control as defined in the Option Plans, or the expiration of each option
grant, whichever is earlier. If any of the Options are not exercised as specified, such Options will be cancelled, and you will not be able to exercise them. 

 Except as set forth in this Agreement, such Options will remain subject to the terms and conditions of the
Management Option Plan (the “Plan”) and the applicable Non-Qualified Option Agreement (the “Option Agreements”) currently in place between you and the Company. Notwithstanding the provision of your Option Agreements that provides
Graham the right to call your outstanding Options and Option Units following your termination of employment, your Options and any Units acquired upon your exercise of any Option(s) may only be purchased by Graham upon the occurrence of any of the
following events (i) you become an employee or consultant of any Competitor (as defined in the Employment Agreement), (ii) you make a financial investment in any Competitor on behalf of yourself or any member of your family, (iii) within
six months following an initial Public Offering (as defined in the Plan), or (iv) upon a Change in Control (as defined in the Option Agreements). Any such purchase by Graham shall be at Fair Market Value (as defined in your Option Agreements).
Notwithstanding any prior discussions or agreements, you will not receive any additional option grants. 
 You hereby confirm and agree that,
subsequent to the Date of Termination, you remain a party to and arc bound by the terms and conditions of (i) the Management Stockholders’ Agreement, dated as of February 3, 1998, among Blackstone Capital Partners III Merchant Banking
Fund L.P., Blackstone Offshore Capital Partners III L.P., Blackstone Family Investment Partnership III, L.P., BMP/Graham Holdings Corporation, Graham, GPC Capital Corp. II, you and the other management investors named therein, as the same may be
amended, supplemented or otherwise modified from time to time (the “Stockholders Agreement; (ii) the Registration Rights Agreement, dated as of February 2, 1998, among the Company, GPC Capital Corp. II, Graham Capital Corporation,
Graham Family Growth Partnership, BCP/Graham Holdings L.L.C., BMP/Graham Holdings Corporation and the other parties named therein, as the same may be amended, supplemented or otherwise modified from time to time, and (iii) the Promissory Notes,
dated as of September 28, 2000 and March 30, 2001, between you and the Company, as the same may be amended, supplemented or otherwise modified from time to time (the “Notes”), and the related Pledge Agreements, dated as of
September 28, 2000 and March 30, 2001, between you and the Company, as the same may be amended, supplemented or otherwise modified from time to time. 
 With regards to the Notes, you will have the choice to repay the Notes at any time before the expiration date of such Notes. If you decide to repay the Notes after termination by June 1, 2009, Graham
shall repurchase your remaining Common Stock and remit to you $87,339.22 per the following calculation detail: 
  

			
		  	At December 31, 2008, you owned 17.968 shares of BMP/Graham Holdings Corporation, which were equivalent to 6.967 units of Graham Packaging Holdings Company. On each of
September 28, 2000 and March 29, 2001, Graham Packaging Company loaned you $26,041 at 6.22% interest to purchase a total of 5.208 shares of BMP/Graham Holdings Corporation. As of March 27, 2009, you owed $85,749.95 of principal and
accrued interest under the notes supporting those loans. The value of a share of BMP/Graham Holdings Corporation is derived by dividing the unit value of Graham Packaging Holdings Company by the ratio of the BMP/Graham Holdings Corporation total
shares to the total limited partnership units it owns in Graham Packaging Holdings Company, or 2.579. At March 27, 2009, the fair value of a unit of Graham Packaging Holdings Company is $25,121.50, so the fair value of a share of BMP/Graham
Holdings Corporation is $9,740.79. Therefore the fair value of your BMP/Graham Holdings Corporation shares is $175,028.94. Graham will purchase your shares and use the proceeds to retire your notes and remit to you the remaining
$89,278.99.
		  	

  

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 You hereby covenant and agree that in connection with an underwritten public offering of equity securities
of the Company you will not effect any sale or distribution of your equity securities (including, but not limited to, your Options or Option Units or any successor equity or any securities convertible into or exchangeable or exercisable for such
equity securities) for a period of not more than 180 days after the effective date of the registration statement relating to the offering of equity securities by the Company, and that you will enter into an agreement to that effect if so requested
by the Company. 
 Insurance: 
 All benefits, except health insurance, will end upon your termination from active employment. If you elect a lump sum severance payment, your contributory health insurance with Graham Packaging Company will end on April 30, 2009.
However, if you elect salary continuation, your contributory health insurance will end on May 31, 2010. 
 Once your health insurance ends
with Graham, you may continue the health insurance coverage under the provisions of COBRA. For employees who are laid off, COBRA provides 18 months of health insurance coverage. The period of time that you are eligible for health insurance under
COBRA begins with the date of your termination from active employment. Therefore, any period of coverage provided by Graham after your termination date is included in the 18 months of COBRA eligibility. 
 CobraServ, our COBRA benefits administrator, will forward you information, including the monthly premium cost. If you were contributing to a health care or
dependent care flexible spending account you will also have the option to continue participating in this program under provisions of COBRA after your termination of employment and for the remainder of the calendar year. Again, information concerning
these benefits and the monthly premium costs will be forwarded to you by CobraServ, our COBRA benefits administrator. 
 You will also have the
option to convert your life insurance to an individual policy. If you wish to do so, please contact Lori Neiman, Group Benefits Administrator, at 717-849-8513 for an application. The application must be submitted to the carrier within 31 days of
your termination from active employment. You should contact Fidelity at 800-835-5097 to initiate the withdrawal or rollover of your 401(k) money. You may also elect to leave the money in the plan if you wish. Please note that 401(k) deductions and
loan payments will not be taken from pay continuation. 
 Continued Assistance: 
 You agree to assist Graham in the following post-employment areas: assisting in litigations- including the DiPasquale and OI Indemnity lawsuits; labor
disputes and issues; employment related disputes, and other matters where your input is required to defend or pursue any dispute. Graham shall reimburse you for your out-pocket expenses incurred while assisting in these matters. 
 Waiver and Releases: 
 In consideration of
receiving from the Company the payments and benefits provided for in this Agreement, certain of which payments and benefits you may not have otherwise been entitled to receive, you agree to unconditionally release and discharge the Company and its
present, past and future parent, subsidiary and affiliated companies, principals, partners, joint ventures, directors, officers, employees,

  

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stockholders, attorneys, agents, and successors and assigns from any and all claims, causes of action, demands, lawsuits or other charges whatsoever, known or unknown, directly and indirectly
related to your employment or termination thereof including any claims under any employee benefit plans of the Company or its affiliates, except for (i) any right to elect continuation healthcare coverage under COBRA at your expense, or
(ii) any claims for vested benefit plans, including but not limited to retirement, pension or health insurance plans. The claims or actions released herein include, but are not limited to, those based on allegations of wrongful discharge,
breach of contract, promissory estoppels, defamation, infliction of emotional distress, and those alleging discrimination on the basis of race, color, sex, religion, national origin, age, disability, or any other basis, including, but not limited
to, any claim or action under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Equal Pay Act of 1963, the Civil Rights Act
of 1991, the Employee Retirement Income Security Act of 1974, Executive Order 11246 relating to Federal affirmative action requirements, the Family Medical Leave Act, the Fair Labor Standards Act, the Labor Management Relations Act, the Equal Pay
Act, the Worker Adjustment Retraining and Notification Act or any other federal, state, or local law, rule, ordinance, or regulation as presently enacted or adopted and as each may hereafter be amended. 
 With respect to any claim that you might have under the Age Discrimination in Employment Act of 1967, as amended, you acknowledge the following:
(i) your waiver of any rights or claims under the Age Discrimination in Employment Act of 1967 is in exchange for the consideration reflected in this Agreement; (ii) you are not waiving rights or claims that may arise after the date of
this Agreement; and (iii) you have been advised by this written Agreement to consult with an attorney prior to executing this Agreement. You also acknowledge that you have been given a period of at least twenty-one (21) days within which
to consider this Agreement. At your option and sole discretion, you may waive the twenty-one (21) day review period and execute this Agreement before the expiration date of twenty-one (21) days. If given a reasonable period of time within
which to consider this Agreement and your waiver is made freely and voluntarily, without duress or any coercion by any other person. You and the Company agree that you have a period of seven (7) days following the execution of this Agreement
within which to revoke this Agreement. 
 Non-Admission of Liability: 
 The Company’s offer to you of this Agreement and the payments and benefits set forth herein is not intended to, and shall not be construed as, any admission of liability to you or of any improper
conduct on the part of the Company or any of the Releasees, all of which the Company and the Releasees specifically deny. 
 You have been
informed that in the event of your breach of any obligations under this Agreement or revocation of this Agreement, the Agreement and the Company’s obligations herein shall be null and void and of no further force and effect, including any
obligation of the Company to make severance payments to you. 
 You and the Company acknowledge and agree that this Agreement shall not be
effective or enforceable until the seven (7) day revocation period expires. The date on which this seven (7) day period expires shall be the effective date of this Agreement and notwithstanding any provision to the contrary in this
Agreement, no payment under this Agreement shall be made prior to the expiration of such revocation period. 
 So as to avoid any
misunderstanding following your departure from the Company, I wish to remind you that as a condition of your employment with Graham Packaging you made a number of commitments to Graham Packaging Company and/or other Graham companies which not only
applied during your tenure

  

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with Graham Packaging, but thereafter as well. These commitments range from a pledge to return to Graham Packaging various documents and materials, to various prohibitions against disclosure of
information to outsiders, and private use of processes or ideas developed during or after your Graham employment. 
 You may be eligible for
unemployment compensation and should contact your local Office of Employment Security for such purposes. 
 Sincerely, 
  

	
	 /s/ Mark S. Burgess

	Mark S. Burgess
	CEO

 I have read the above information and fully understand the terms and conditions of my termination. I
elect [            ] pay continuation [            ] lump sum distribution of my severance payable benefit. 
  

							
	 /s/ George Lane
	 		 	 April 3, 2009
	 	
	George Lane	 		 	Date	 	

  

 5Form of Director Fee Agreement

 Exhibit 10.40 
 GRAHAM 
 PACKAGING 
 COMPANY, INC. 
 2401 Pleasant Valley Road 
 York, Pennsylvania 17402 
 (717) 849-8500 
 FAX (717) 854-4269 
 FORM OF DIRECTOR’S FEE AGREEMENT 
 THIS DIRECTOR’S FEE AGREEMENT (this “Agreement”), is made as of January 11, 2010, by and between Graham Packaging Company, Inc., a Delaware Corporation (the “Company”) and
                             (“Director”). 
 WHEREAS, the Company desires to retain the Director to serve as a member of the Board of Directors of the Company, and the Director desires
to be so retained by the Company, on the terms and subject to the conditions more fully set forth in this Agreement; 
 NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement, the Company and the Director agree as follows: 
 1. Director Arrangement. The Company hereby retains the Director, and the Director hereby agrees to serve as a Director to the Company, on the terms and subject to the conditions of this Agreement.
The Director will serve as a non-employee member of the Board of Directors of the Company (the “Board”) and shall do so in accordance with the fiduciary duties of a director of a Delaware corporation. 
 2. Term. The term of the Director’s service under this Agreement (the “Term”) shall commence on the date hereof and
shall expire pursuant to Section 5 hereof. 
 3. Compensation. 
 (a) Annual Fee. The Company shall pay Director a fee of $18,750 for each quarter the Director serves on the Board (the
“Quarterly Fee”). 
 (b) Meeting Fees. The Company shall pay Director a fee of $1,000 for each
regularly scheduled meeting of the Board of Directors that the Director attends in person. The Company shall not pay Director a fee for attending meetings telephonically. 
 (c) Committee Fees. If the Director is designated to participate in a committee of the Board of Directors as either a
chairperson or non-chairperson member, the Director will be entitled to compensation in addition to the Quarterly Fee in accordance with the following provisions: 
 (i) Audit Committee Fees. If the Director is designated as chairperson of the Audit Committee, the Company shall pay
Director a fee of $4,375 for each quarter in which the Director serves as chairperson of the Audit Committee, plus a fee of $1,000 for each regularly scheduled meeting of the Audit Committee that the Director attends in person. For each quarter in
which the Director is designated as a member of the Audit Committee but not as the chairperson of that committee, the Company shall pay Director a fee of $3,125, plus a fee of $1,000 for each regularly scheduled meeting of the Audit Committee that
the Director attends in person. 

 (ii) Compensation Committee Fees. If the Director is designated as
chairperson of the Compensation Committee, the Company shall pay Director a fee of $3,125 for each quarter in which the Director serves as chairperson of the Compensation Committee, plus a fee of $1,000 for each regularly scheduled meeting of the
Compensation Committee that the Director attends in person. For each quarter in which the Director is designated as a member of the Compensation Committee but not as the chairperson of that committee, the Company shall pay Director a fee of $1,875
for each quarter the Director serves as a non-chairperson member of the Compensation Committee, plus a fee of $1,000 for each regularly scheduled meeting of the Compensation Committee that the Director attends in person. 
 (iii) Nominating/Corporate Governance Committee Fees. If the Director is designated as chairperson of the
Nominating/Corporate Governance Committee, the Company shall pay Director a fee of $3,125 for each quarter in which the Director serves as chairperson of the Nominating/Corporate Governance Committee, plus a fee of $1,000 for each regularly
scheduled meeting of the Nominating/Corporate Governance Committee that the Director attends in person. For each quarter in which the Director is designated as a member of the Nominating/Corporate Governance but not as the chairperson of that
committee, the Company shall pay Director a fee of $1,875 for each quarter the Director serves as member of the Nominating/Corporate Governance Committee, plus a fee of $1,000 for each regularly scheduled meeting of the Nominating/Corporate
Governance Committee that the Director attends in person. 
 (d) Payment of Fees. The Company reserves the
right to remit fees to the Director in either (i) cash, or (ii) equity equal to the monetary value of the fee owed to the Director under this Agreement. 
 4. Status; Taxes 
 (a) Status of Director. Director
shall not be an employee of the Company or any of its affiliates and shall not be entitled to participate in any employee benefit plans or other benefits or conditions of employment available to the employees of the Company. Director shall have no
authority to act as an agent of the Company, except on authority specifically so delegated, and he shall not represent to the contrary to any person.

  

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Director shall only consult, render advice and perform such tasks as Director determines are necessary to achieve the results specified by the Company. He shall not direct the work of any
employee of the Company, or make any management decisions, or undertake to commit the Company to any course of action in relation to third persons. Although the Company may specify the results to be achieved by Director and may control and direct
him in that regard, the Company shall not control or direct the Director as to the details or means by which such results are accomplished. The Company will maintain directors and officers insurance and will limit the liability of the Director in
accordance with the relevant terms of the Company’s bylaws. 
 (b) Taxes. It is intended that the
fees paid hereunder shall constitute revenues to Director. To the extent consistent with applicable law, the Company will not withhold any amounts therefrom as federal income tax withholding from wages or as employee contributions under the Federal
Insurance Contributions Act or any other state or federal laws. Director shall be solely responsible for the withholding and/or payment of any federal, state or local income or payroll taxes and shall hold the Company, its officers, directors and
employees harmless from any liability arising from the failure to withhold such amounts. 
 5. Termination. This
Agreement and Director’s retention hereunder may be terminated by the Company or the Director for any reason upon 30 days advanced written notice; provided, however, that upon the Director’s appointment to the Board, the Director’s
termination shall be in accordance with the bylaws of the publicly-held corporation. The Company reserves the right to not place the Director up for shareholder approval upon the expiration of the Director’s Term. In the event of a termination
of the Term and the Director’s services hereunder, neither the Company nor the Director shall have any further obligations hereunder. 
 6. Entire Agreement/Prior Agreement. The provisions contained herein constitute the entire agreement between the parties with respect to the subject matter of this Agreement and supersede any and
all prior agreements, understandings and communications between the parties, oral or written, with respect to such subject matter. 
 7. Expenses. The Company shall reimburse Director for any reasonable expenses incurred by him in connection with the performance of his services hereunder; provided that such services were directed by the Company and any material
expenses shall be subject to preapproval by the CEO or next most senior officer of the Company. 
 8. Modifications. Any
waiver, alteration, amendment or modification of any provisions of this Agreement shall not be valid unless in writing and signed by the Company and the Director. 
 9. Assignment. The Company may assign its rights and delegate its obligations under this Agreement to any successor-in-interest to its business. Except as provided in the previous sentence, neither
party may assign any of its or his rights or delegate any of its or his duties under this Agreement without the consent of the other and any attempted assignment in violation of this provision shall be void. 
  

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 10. Notice. All notices and other communications required or permitted under this
Agreement shall be made in writing and shall be deemed given if delivered personally, sent by registered or certified mail, return receipt requested, postage prepaid, or sent by nationally recognized overnight courier service, addressed as follows:

 (1) if to the Company: 
 Graham Packaging Company, Inc. 
 2401 Pleasant Valley Road 
 York, Pennsylvania 17402 
 Attention: General Counsel 
 (2) if to the Director at the address listed in the personnel records of the Company.

 11. Choice of Law. This Agreement shall be governed by and construed in accordance with the law of the State of
Pennsylvania, without regard to conflicts of laws principles thereof. 
 12. Counterparts. This Agreement may be executed
in one or more counterparts, which shall, collectively and separately, constitute one agreement. 
 IN WITNESS WHEREOF, the
Company and the Director have executed this Agreement as of the date first above written. 
  

							
	Graham Packaging Company, Inc.	  		 	Director
				
	By:	  	  
	  		 	  

	Title:	  	  
	  		 	

  

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