Document:

Exhibit 4.2

 

Execution Version

 

Registration Rights Agreement
 $400,000,000
 GLOBAL PARTNERS LP
 GLP FINANCE CORP.
 7.00% Senior Notes due 2027

 

Registration Rights Agreement

 

This REGISTRATION RIGHTS AGREEMENT dated July 31, 2019 (the “Agreement”) is entered into by and among Global Partners LP, a Delaware limited partnership (the “Partnership”), GLP Finance Corp., a Delaware corporation (“GLP Finance,” and together with the Partnership, the “Issuers”), the guarantors listed on the signature pages hereto (the “Guarantors”), and BofA Securities, Inc. (“Merrill”), for itself and the other several Initial Purchasers listed on Schedule 1 hereto (the “Initial Purchasers”).

 

The Issuers, the Guarantors and the Initial Purchasers are parties to the Purchase Agreement dated July 24, 2019 (the “Purchase Agreement”), which provides for the sale by the Issuers to the Initial Purchasers of $400,000,000 aggregate principal amount of the Issuers’ 7.00% Senior Notes due 2027 (the “Securities”) which will be guaranteed on an unsecured senior basis by each of the Guarantors.  As an inducement to the Initial Purchasers to enter into the Purchase Agreement, the Issuers and the Guarantors have agreed to provide to the Initial Purchasers and their direct and indirect transferees the registration rights set forth in this Agreement.  The execution and delivery of this Agreement is a condition to the closing under the Purchase Agreement.

 

In consideration of the foregoing, the parties hereto agree as follows:

 

1.              Definitions.  As used in this Agreement, the following terms shall have the following meanings:

 

“Additional Guarantor” shall mean any subsidiary of the Partnership that executes a Subsidiary Guarantee under the Indenture after the date of this Agreement.

 

“Business Day” shall mean any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

 

“Exchange Dates” shall have the meaning set forth in Section 2(a)(ii) hereof.

 

“Exchange Offer” shall mean the exchange offer by the Issuers and the Guarantors of Exchange Securities for Registrable Securities pursuant to Section 2(a) hereof.

 

“Exchange Offer Registration” shall mean a registration under the Securities Act effected pursuant to Section 2(a) hereof.

 

 

“Exchange Offer Registration Statement” shall mean an exchange offer registration statement on Form S-4 (or, if applicable, on another appropriate form) and all amendments and supplements to such registration statement, in each case including the Prospectus contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein.

 

“Exchange Securities” shall mean senior notes issued by the Issuers and guaranteed by the Guarantors under the Indenture containing terms identical to the Securities (except that the Exchange Securities will not be subject to restrictions on transfer or to any increase in annual interest rate for failure to comply with this Agreement) and to be offered to Holders of Securities in exchange for Securities pursuant to the Exchange Offer.

 

“FINRA” means the Financial Industry Regulatory Authority, Inc.

 

“Free Writing Prospectus” means each free writing prospectus (as defined in Rule 405 under the Securities Act) prepared by or on behalf of the Partnership or used or referred to by the Partnership in connection with the sale of the Securities or the Exchange Securities.

 

“Guarantors” shall have the meaning set forth in the preamble and shall also include any Guarantor’s successors that guarantee the Securities and any Additional Guarantors.

 

“Holders” shall mean the Initial Purchasers, for so long as they own any Registrable Securities, and each of their successors, assigns and direct and indirect transferees who become owners of Registrable Securities under the Indenture; provided that for purposes of Sections 4 and 5 of this Agreement, the term “Holders” shall include Participating Broker-Dealers.

 

“Indemnified Person” shall have the meaning set forth in Section 5(c) hereof.

 

“Indemnifying Person” shall have the meaning set forth in Section 5(c) hereof.

 

“Indenture” shall mean the Indenture dated as of July 31, 2019 among the Issuers, the Guarantors and Deutsche Bank Trust Company Americas, as trustee, and as the same may be further amended from time to time in accordance with the terms thereof.

 

“Initial Purchasers” shall have the meaning set forth in the preamble.

 

“Inspector” shall have the meaning set forth in Section 3(a)(xiv) hereof.

 

“Issuers” shall have the meaning set forth in the preamble.

 

“Issuer Information” shall have the meaning set forth in Section 5(a) hereof.

 

“Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of the outstanding Registrable Securities; provided that whenever the consent or approval of Holders of a specified percentage of Registrable Securities is required hereunder, any Registrable Securities owned directly or indirectly by the Issuers or any of their affiliates shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage or amount; and provided, further, that if the Issuers shall issue any additional Securities under the Indenture prior to consummation of the Exchange Offer or, if applicable, the

 

2

 

effectiveness of any Shelf Registration Statement, such additional Securities and the Registrable Securities to which this Agreement relates shall be treated together as one class for purposes of determining whether the consent or approval of Holders of a specified percentage of Registrable Securities has been obtained.

 

“Merrill” shall have the meaning set forth in the preamble.

 

“Notice and Questionnaire” shall mean a notice of registration statement and selling security holder questionnaire distributed to a Holder by the Partnership upon receipt of a Shelf Request from such Holder.

 

“Participating Broker-Dealers” shall have the meaning set forth in Section 4(a) hereof.

 

“Participating Holder” shall mean any Holder of Registrable Securities that has returned a completed and signed Notice and Questionnaire to the Partnership in accordance with Section 2(b) hereof.

 

“Partnership” shall have the meaning set forth in the preamble and shall also include the Partnership’s successors.

 

“Person” shall mean an individual, partnership, limited liability company, corporation, trust or unincorporated organization, or a government or agency or political subdivision thereof.

 

“Prospectus” shall mean the prospectus included in, or, pursuant to the rules and regulations of the Securities Act, deemed a part of, a Registration Statement, including any preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus supplement, including a prospectus supplement with respect to the terms of the offering of any portion of the Registrable Securities covered by a Shelf Registration Statement, and by all other amendments and supplements to such prospectus, and in each case including any document incorporated by reference therein.

 

“Purchase Agreement” shall have the meaning set forth in the preamble.

 

“Registrable Securities” shall mean the Securities; provided that the Securities shall cease to be Registrable Securities (i) when a Registration Statement with respect to such Securities has become effective under the Securities Act and such Securities have been exchanged or disposed of pursuant to such Registration Statement or (ii) when such Securities cease to be outstanding.

 

“Registration Expenses” shall mean any and all expenses incident to performance of or compliance by the Issuers and the Guarantors with this Agreement, including without limitation: (i) all SEC, stock exchange or FINRA registration and filing fees, (ii) all fees and expenses incurred in connection with compliance with state securities or blue sky laws (including reasonable fees and disbursements of counsel for any Underwriters or Holders in connection with blue sky qualification of any Exchange Securities or Registrable Securities), (iii) all expenses of any Persons in preparing or assisting in preparing, word processing, printing and distributing any Registration Statement, any Prospectus, any Free Writing Prospectus and any amendments or supplements thereto, any underwriting agreements, securities sales agreements or other similar agreements and any other documents relating to the performance of and compliance with this

 

3

 

Agreement, (iv) all rating agency fees, (v) all fees and disbursements relating to the qualification of the Indenture under applicable securities laws, (vi) the fees and disbursements of the Trustee and its counsel, (vii) the fees and disbursements of counsel for the Issuers and the Guarantors and, in the case of a Shelf Registration Statement, the fees and disbursements of one counsel for the Participating Holders (which counsel shall be selected by the Participating Holders holding a majority of the aggregate principal amount of Registrable Securities held by such Participating Holders and which counsel may also be counsel for the Initial Purchasers) and (viii) the fees and disbursements of the independent public accountants of the Issuers and the Guarantors, including the expenses of any special audits or “comfort” letters, as applicable, required by or incident to the performance of and compliance with this Agreement, but excluding fees and expenses of counsel to the Underwriters (other than fees and expenses set forth in clause (ii) above) or the Holders and underwriting discounts and commissions, brokerage commissions and transfer taxes, if any, relating to the sale or disposition of Registrable Securities by a Holder.

 

“Registration Statement” shall mean any registration statement filed under the Securities Act of the Issuers and the Guarantors that covers any of the Exchange Securities or Registrable Securities pursuant to the provisions of this Agreement and all amendments and supplements to any such registration statement, including post-effective amendments, in each case including the Prospectus contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein.

 

“SEC” shall mean the United States Securities and Exchange Commission.

 

“Securities” shall have the meaning set forth in the preamble.

 

“Securities Act” shall mean the Securities Act of 1933, as amended from time to time.

 

“Shelf Effectiveness Period” shall have the meaning set forth in Section 2(b) hereof.

 

“Shelf Registration” shall mean a registration effected pursuant to Section 2(b) hereof.

 

“Shelf Registration Statement” shall mean a “shelf” registration statement of the Issuers and the Guarantors that covers all or a portion of the Registrable Securities (but no other securities unless approved by a majority in aggregate principal amount of the Registrable Securities held by the Participating Holders) on an appropriate form under Rule 415 under the Securities Act, or any similar rule that may be adopted by the SEC, and all amendments and supplements to such registration statement, including post-effective amendments, in each case including the Prospectus contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein.

 

“Shelf Request” shall have the meaning set forth in Section 2(b) hereof.

 

“Subsidiary Guarantees” shall mean the guarantees of the Securities and Exchange Securities by the Guarantors under the Indenture.

 

“Staff” shall mean the staff of the SEC.

 

4

 

“Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time to time.

 

“Trustee” shall mean the trustee with respect to the Securities under the Indenture.

 

“Underwriter” shall have the meaning set forth in Section 3(e) hereof.

 

“Underwritten Offering” shall mean an offering in which Registrable Securities are sold to an Underwriter for reoffering to the public.

 

2.              Registration Under the Securities Act.  (a)  To the extent not prohibited by any applicable law or applicable interpretations of the Staff, the Issuers and the Guarantors shall use commercially reasonable efforts to (i) cause to be filed an Exchange Offer Registration Statement covering an offer to the Holders to exchange all the Registrable Securities for Exchange Securities and (ii) have such Registration Statement remain effective until 180 days after the last Exchange Date for use by one or more Participating Broker-Dealers.  The Issuers and the Guarantors shall commence the Exchange Offer promptly after the Exchange Offer Registration Statement is declared effective by the SEC and use commercially reasonable efforts to complete the Exchange Offer not later than 60 days after such effective date.

 

The Issuers and the Guarantors shall commence the Exchange Offer by mailing or making available the related Prospectus, appropriate letters of transmittal and other accompanying documents to each Holder stating, in addition to such other disclosures as are required by applicable law, substantially the following:

 

(i)                                     that the Exchange Offer is being made pursuant to this Agreement and that all Registrable Securities validly tendered and not properly withdrawn will be accepted for exchange;

 

(ii)                                  the dates of acceptance for exchange (which shall be a period of at least 20 Business Days from the date such notice is mailed or made available) (the “Exchange Dates”);

 

(iii)                               that any Registrable Security not tendered will remain outstanding and continue to accrue interest but will not retain any rights under this Agreement, except as otherwise specified herein;

 

(iv)                              that any Holder electing to have a Registrable Security exchanged pursuant to the Exchange Offer will be required to (A) surrender such Registrable Security, together with the appropriate letters of transmittal, to the institution and at the address and in the manner specified in the notice, or (B) effect such exchange otherwise in compliance with the applicable procedures of the depositary for such Registrable Security, in each case prior to the close of business on the last Exchange Date; and

 

(v)                                 that any Holder will be entitled to withdraw its election, not later than the close of business on the last Exchange Date, by (A) sending to the institution and at the address specified in the notice, a telegram, facsimile transmission or letter setting

 

5

 

forth the name of such Holder, the principal amount of Registrable Securities delivered for exchange and a statement that such Holder is withdrawing its election to have such Securities exchanged or (B) effecting such withdrawal in compliance with the applicable procedures of the depositary for the Registrable Securities.

 

As a condition to participating in the Exchange Offer, a Holder will be required to represent to the Issuers and the Guarantors that (i) any Exchange Securities to be received by it will be acquired in the ordinary course of its business, (ii) at the time of the commencement of the Exchange Offer it has no arrangement or understanding with any Person to participate in the distribution (within the meaning of the Securities Act) of the Exchange Securities in violation of the provisions of the Securities Act, (iii) it is not an “affiliate” (within the meaning of Rule 405 under the Securities Act) of any Issuer or any Guarantor and (iv) if such Holder is a broker-dealer that will receive Exchange Securities for its own account in exchange for Registrable Securities that were acquired as a result of market-making or other trading activities, then such Holder will deliver a Prospectus (or, to the extent permitted by law, make available a Prospectus to purchasers) in connection with any resale of such Exchange Securities.

 

As soon as practicable after the last Exchange Date, the Issuers and the Guarantors shall:

 

(i)                                     accept for exchange Registrable Securities or portions thereof validly tendered and not properly withdrawn pursuant to the Exchange Offer; and

 

(ii)                                  deliver, or cause to be delivered, to the Trustee for cancellation all Registrable Securities or portions thereof so accepted for exchange by the Issuers and issue, and cause the Trustee to promptly authenticate and deliver to each Holder, Exchange Securities equal in principal amount to the principal amount of the Registrable Securities tendered by such Holder.

 

The Issuers and the Guarantors shall use commercially reasonable efforts to complete the Exchange Offer as provided above and shall comply with the applicable requirements of the Securities Act, the Exchange Act and other applicable laws and regulations in connection with the Exchange Offer.  The Exchange Offer shall not be subject to any conditions, other than that the Exchange Offer does not violate any applicable law or applicable interpretations of the Staff.

 

(b)         In the event that (i) the Issuers and the Guarantors determine that the Exchange Offer Registration provided for in Section 2(a) above is not available or the Exchange Offer may not be completed as soon as practicable after the last Exchange Date because it would violate any applicable law or applicable interpretations of the Staff, (ii) the Exchange Offer is not for any other reason completed by September 23, 2020 or (iii) any Initial Purchaser shall so request in connection with any offer or sale of Registrable Securities (a “Shelf Request”), the Issuers and the Guarantors shall use commercially reasonable efforts to cause to be filed as soon as practicable after such determination, date or Shelf Request, as the case may be, a Shelf Registration Statement providing for the sale of all the Registrable Securities by the Holders thereof and to have such Shelf Registration Statement become effective; provided that no Holder will be entitled to have any Registrable Securities included in any Shelf Registration Statement, or entitled to use the Prospectus forming a part of such Shelf Registration Statement, until such Holder shall have

 

6

 

delivered a completed and signed Notice and Questionnaire and provided such other information regarding such Holder to the Issuers as is contemplated by Section 3(b) hereof.

 

In the event that the Issuers and the Guarantors are required to file a Shelf Registration Statement pursuant to clause (iii) of the preceding sentence, the Issuers and the Guarantors shall use commercially reasonable efforts to file and have declared effective by the SEC (or file and become effective automatically, as the case may be) both an Exchange Offer Registration Statement pursuant to Section 2(a) above with respect to all Registrable Securities and a Shelf Registration Statement (which may be a combined Registration Statement with the Exchange Offer Registration Statement) with respect to offers and sales of Registrable Securities held by the Initial Purchasers after completion of the Exchange Offer.

 

The Issuers and the Guarantors agree to use commercially reasonable efforts to keep the Shelf Registration Statement continuously effective until the earlier of one year following the effective date of the Shelf Registration Statement and such time as all the Registrable Securities covered by the Shelf Registration Statement have been sold pursuant to the Shelf Registration Statement (the “Shelf Effectiveness Period”).  The Issuers and the Guarantors further agree to supplement or amend the Shelf Registration Statement, the related Prospectus and any Free Writing Prospectus if required by the rules, regulations or instructions applicable to the registration form used by the Issuers for such Shelf Registration Statement or by the Securities Act or by any other rules and regulations thereunder or if reasonably requested by a Participating Holder with respect to information relating to such Holder, and, to the extent necessary, to use commercially reasonable efforts to cause any such amendment to become effective and such Shelf Registration Statement, Prospectus or Free Writing Prospectus, as the case may be, to become usable as soon as thereafter practicable.  The Issuers and the Guarantors agree to furnish to the Participating Holders copies of any such supplement or amendment promptly after its being used or filed with the SEC.

 

(c)          The Issuers and the Guarantors shall pay all Registration Expenses in connection with any registration pursuant to Section 2(a) or Section 2(b) hereof.  Each Holder shall pay all underwriting discounts and commissions, brokerage commissions and transfer taxes, if any, relating to the sale or disposition of such Holder’s Registrable Securities pursuant to the Shelf Registration Statement.

 

(d)         An Exchange Offer Registration Statement pursuant to Section 2(a) hereof will not be deemed to have become effective unless it has been declared effective by the SEC.  A Shelf Registration Statement pursuant to Section 2(b) hereof will not be deemed to have become effective unless it has been declared effective by the SEC or is automatically effective upon filing with the SEC as provided by Rule 462 under the Securities Act.

 

In the event that either the Exchange Offer is not completed or the Shelf Registration Statement, if required hereby, is not declared effective (or does not automatically become effective) on or prior to September 23, 2020, the Issuers will pay liquidated damages to Holders of Registrable Securities with the effect that the interest rate on the Registrable Securities will be increased by 1.00% per annum until the Exchange Offer is completed or the Shelf Registration Statement, if required hereby, is declared effective by the SEC (or becomes automatically effective).  All liquidated damages will be paid by the Issuers on the next scheduled interest payment date in the same manner as interest is paid on the Securities under the Indenture.

 

7

 

If the Shelf Registration Statement, if required hereby, has been declared effective or automatically becomes effective, as the case may be, and thereafter either ceases to be effective or the Prospectus contained therein ceases to be usable at any time during the Shelf Effectiveness Period, and such failure to remain effective or usable exists for more than 30 days (whether or not consecutive) in any 12-month period, unless such failure to remain effective or usable relates or is directly attributable to an acquisition or disposition being undertaken by the Issuers then the Issuers will pay liquidated damages to the Holders of Registrable Securities with the effect that the interest rate on the Registrable Securities will be increased by 1.00% per annum commencing on the 31st day in such 12-month period and ending on such date that the Shelf Registration Statement has again been declared (or automatically becomes) effective or the Prospectus again becomes usable.

 

(e)          Without limiting the remedies available to the Initial Purchasers and the Holders, the Issuers and the Guarantors acknowledge that any failure by the Issuers or the Guarantors to comply with their obligations under Section 2(a) and Section 2(b) hereof may result in material irreparable injury to the Initial Purchasers or the Holders for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely and that, in the event of any such failure, the Initial Purchasers or any Holder may obtain such relief as may be required to specifically enforce the Issuers’ and the Guarantors’ obligations under Section 2(a) and Section 2(b) hereof.  The provisions for liquidated damages set forth in Section 2(d) above shall be the only monetary remedy available to the Holders under this Agreement.

 

3.              Registration Procedures.  (a) In connection with their obligations pursuant to Section 2(a) and Section 2(b) hereof, the Issuers and the Guarantors shall as expeditiously as possible:

 

(i)                                  prepare and file with the SEC a Registration Statement on the appropriate form under the Securities Act, which form (x) shall be selected by the Issuers and the Guarantors, (y) shall, in the case of a Shelf Registration, be available for the sale of the Registrable Securities by the Participating Holders thereof and (z) shall comply as to form in all material respects with the requirements of the applicable form and include all financial statements required by the SEC to be filed therewith; and use commercially reasonable efforts to cause such Registration Statement to become effective and remain effective for the applicable period in accordance with Section 2 hereof;

 

(ii)                               prepare and file with the SEC such amendments and post-effective amendments to each Registration Statement as may be necessary to keep such Registration Statement effective for the applicable period in accordance with Section 2 hereof and cause each Prospectus to be supplemented by any required prospectus supplement and, as so supplemented, to be filed pursuant to Rule 424 under the Securities Act; and keep each Prospectus current during the period described in Section 4(a)(3) of and Rule 174 under the Securities Act that is applicable to transactions by brokers or dealers with respect to the Registrable Securities or Exchange Securities;

 

(iii)                            to the extent any Free Writing Prospectus is used, file with the SEC any Free Writing Prospectus that is required to be filed by the Issuers or the Guarantors with

 

8

 

the SEC in accordance with the Securities Act and to retain any Free Writing Prospectus not required to be filed;

 

(iv)                              in the case of a Shelf Registration, furnish to each Participating Holder, to counsel for the Initial Purchasers, to counsel for such Participating Holders and to each Underwriter of an Underwritten Offering of Registrable Securities, if any, without charge, as many copies of each Prospectus, including each preliminary prospectus or Free Writing Prospectus, and any amendment or supplement thereto, as such Participating Holder, counsel or Underwriter may reasonably request in order to facilitate the sale or other disposition of the Registrable Securities thereunder; and, subject to Section 3(c) below, the Issuers and the Guarantors consent to the use of such Prospectus, preliminary prospectus or such Free Writing Prospectus and any amendment or supplement thereto in accordance with applicable law by each of the Participating Holders and any such Underwriters in connection with the offering and sale of the Registrable Securities covered by and in the manner described in such Prospectus, preliminary prospectus or such Free Writing Prospectus or any amendment or supplement thereto in accordance with applicable law;

 

(v)                                 use commercially reasonable efforts to register or qualify the Registrable Securities under all applicable state securities or blue sky laws of such jurisdictions as any Participating Holder shall reasonably request in writing by the time the applicable Registration Statement becomes effective; cooperate with such Participating Holders in connection with any filings required to be made with FINRA, and do any and all other acts and things that may be reasonably necessary or advisable to enable each Participating Holder to complete the disposition in each such jurisdiction of the Registrable Securities owned by such Participating Holder; provided that neither the Issuers nor any Guarantor shall be required to (1) qualify as a foreign corporation or other entity or as a dealer in securities in any such jurisdiction where it would not otherwise be required to so qualify, (2) file any general consent to service of process in any such jurisdiction or (3) subject itself to taxation in any such jurisdiction if it is not so subject;

 

(vi)                              notify counsel for the Initial Purchasers and, in the case of a Shelf Registration, notify each Participating Holder and counsel for such Participating Holders promptly and, if requested by any such Participating Holder or counsel, confirm such advice in writing (1) when a Registration Statement has become effective, when any post-effective amendment thereto has been filed and becomes effective, when any Free Writing Prospectus has been filed or any amendment or supplement to the Prospectus or any Free Writing Prospectus has been filed, (2) of any request by the SEC or any state securities authority for amendments and supplements to a Registration Statement, Prospectus or any Free Writing Prospectus or for additional information after the Registration Statement has become effective, (3) of the issuance by the SEC or any state securities authority of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose, including the receipt by the Issuers of any notice of objection of the SEC to the use of a Shelf Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the Securities Act, (4) if,

 

9

 

between the applicable effective date of a Shelf Registration Statement and the closing of any sale of Registrable Securities covered thereby, the representations and warranties of any Issuer or any Guarantor contained in any underwriting agreement, securities sales agreement or other similar agreement, if any, relating to an offering of such Registrable Securities cease to be true and correct in all material respects or if any Issuer or any Guarantor receives any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation of any proceeding for such purpose, (5) of the happening of any event during the period a Registration Statement is effective that makes any statement made in such Registration Statement or the related Prospectus or any Free Writing Prospectus untrue in any material respect or that requires the making of any changes in such Registration Statement or Prospectus or any Free Writing Prospectus in order to make the statements therein, in the light of the circumstances in which they were made in the case of the Prospectus or any Free Writing Prospectus, not misleading and (6) of any determination by any Issuer or any Guarantor that a post-effective amendment to a Registration Statement or any amendment or supplement to the Prospectus or any Free Writing Prospectus would be appropriate;

 

(vii)                           use commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement or, in the case of a Shelf Registration, the resolution of any objection of the SEC pursuant to Rule 401(g)(2) under the Securities Act, including by filing an amendment to such Registration Statement on the proper form, at the earliest practicable moment and provide immediate notice to each Holder or Participating Holder of the withdrawal of any such order or such resolution;

 

(viii)                        in the case of a Shelf Registration, furnish or make available to each Participating Holder, without charge, at least one conformed copy of each Registration Statement and any post-effective amendment thereto (without any documents incorporated therein by reference or exhibits thereto, unless requested);

 

(ix)                              in the case of a Shelf Registration, cooperate with the Participating Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold and not bearing any restrictive legends and enable such Registrable Securities to be issued in such denominations and registered in such names (consistent with the provisions of the Indenture) as such Participating Holders may reasonably request at least one Business Day prior to the closing of any sale of Registrable Securities;

 

(x)                                 upon the occurrence of any event contemplated by Section 3(a)(vi)(5) hereof, use commercially reasonable efforts to prepare and file with the SEC a supplement or post-effective amendment to the Exchange Offer Registration Statement or Shelf Registration Statement or the related Prospectus or any Free Writing Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered (or, to the extent permitted by law, made available) to purchasers of the Registrable Securities, such Prospectus or Free Writing

 

10

 

Prospectus, as the case may be, will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and the Issuers and the Guarantors shall notify the Participating Holders (in the case of a Shelf Registration Statement) and the Initial Purchasers and any Participating Broker-Dealers known to the Issuers (in the case of the Exchange Offer Registration Statement) to suspend use of the Prospectus or any Free Writing Prospectus as promptly as practicable after the occurrence of such an event, and such Participating Holders, such Participating Broker-Dealers and the Initial Purchasers, as applicable, hereby agree to suspend use of the Prospectus or any Free Writing Prospectus, as the case may be, until the Issuers and the Guarantors have amended or supplemented the Prospectus or the Free Writing Prospectus, as the case may be, to correct such misstatement or omission; provided that the obligations under this Section 3(a)(x) with respect to the Exchange Offer Registration Statement shall terminate at the end of the period set forth in Section 2(a)(ii) of this Agreement;

 

(xi)                              a reasonable time prior to the filing of any Registration Statement, any Prospectus, any Free Writing Prospectus, any amendment to a Registration Statement or amendment or supplement to a Prospectus or a Free Writing Prospectus, provide copies of such document to the Initial Purchasers and their counsel (and, in the case of a Shelf Registration Statement, to the Participating Holders and their counsel) and make such of the representatives of the Issuers and the Guarantors as shall be reasonably requested by the Initial Purchasers or their counsel (and, in the case of a Shelf Registration Statement, the Participating Holders or their counsel) available for discussion of such document; and the Issuers and the Guarantors shall not, at any time after initial filing of a Registration Statement, use or file any Prospectus, any Free Writing Prospectus, any amendment of or supplement to a Registration Statement, a Prospectus or a Free Writing Prospectus, of which the Initial Purchasers and their counsel (and, in the case of a Shelf Registration Statement, the Participating Holders and their counsel) shall not have previously been advised and furnished a copy or to which the Initial Purchasers or their counsel (and, in the case of a Shelf Registration Statement, the Participating Holders or their counsel) shall reasonably object;

 

(xii)                        obtain a CUSIP number for all Exchange Securities or Registrable Securities, as the case may be, not later than the initial effective date of a Registration Statement;

 

(xiii)                     cause the Indenture to be qualified under the Trust Indenture Act in connection with the registration of the Exchange Securities or Registrable Securities, as the case may be; cooperate with the Trustee and the Holders to effect such changes to the Indenture as may be required for the Indenture to be so qualified in accordance with the terms of the Trust Indenture Act; and execute, and use commercially reasonable efforts to cause the Trustee to execute, all documents as may be required to effect such changes and all other forms and documents required to be filed with the SEC to enable the Indenture to be so qualified in a timely manner;

 

11

 

(xiv)                       in the case of a Shelf Registration, make available for inspection by a representative of the Participating Holders (an “Inspector”), any Underwriter participating in any disposition pursuant to such Shelf Registration Statement, any attorneys and accountants designated by a majority in aggregate principal amount of the Registrable Securities held by the Participating Holders and any attorneys and accountants designated by such Underwriter, at reasonable times and in a reasonable manner, all pertinent financial and other records, documents and properties of the Partnership and its subsidiaries, and cause the respective officers, directors and employees of the Issuers and the Guarantors to supply all information reasonably requested by any such Inspector, Underwriter, attorney or accountant in connection with a Shelf Registration Statement; provided that if any such information is identified by any Issuer or any Guarantor as being confidential or proprietary, each Person receiving such information shall take such actions as are reasonably necessary to protect the confidentiality of such information to the extent such action is otherwise not inconsistent with, an impairment of or in derogation of the rights and interests of any Inspector, Participating Holder or Underwriter;

 

(xv)                          if reasonably requested by any Participating Holder, promptly include in a prospectus supplement or post-effective amendment such information with respect to such Participating Holder as such Participating Holder reasonably requests to be included therein and make all required filings of such prospectus supplement or such post-effective amendment as soon as the Issuers have received notification of the matters to be so included in such filing;

 

(xvi)                       in the case of a Shelf Registration, enter into such customary agreements and take all such other commercially reasonable actions in connection therewith (including those requested by the Participating Holders of a majority in principal amount of the Registrable Securities covered by the Shelf Registration Statement) in order to expedite or facilitate the disposition of such Registrable Securities including, but not limited to, an Underwritten Offering and in such connection, (1) to the extent possible, make such representations and warranties to the Participating Holders and any Underwriters of such Registrable Securities with respect to the business of the Partnership and its subsidiaries and the Registration Statement, Prospectus, any Free Writing Prospectus and documents incorporated by reference or deemed incorporated by reference, if any, in each case, in form, substance and scope as are customarily made by issuers to underwriters in underwritten offerings and confirm the same if and when requested, (2) obtain opinions of counsel to the Issuers and the Guarantors (which counsel and opinions, in form, scope and substance, shall be reasonably satisfactory to the Participating Holders and such Underwriters and their respective counsel) addressed to each Participating Holder and Underwriter of Registrable Securities, covering the matters customarily covered in opinions requested in underwritten offerings, (3) obtain “comfort” letters from the independent certified public accountants of the Issuers and the Guarantors (and, if necessary, any other certified public accountant of any subsidiary of the Partnership, or of any business acquired by any Issuer or any Guarantor for which financial statements and financial data are or are required to be included in the Registration Statement) addressed to each Participating Holder (to the extent

 

12

 

permitted by applicable professional standards) and Underwriter of Registrable Securities, such letters to be in customary form and covering matters of the type customarily covered in “comfort” letters in connection with underwritten offerings, including but not limited to financial information contained in any preliminary prospectus, Prospectus or Free Writing Prospectus, and (4) deliver such documents and certificates as may be reasonably requested by the Participating Holders of a majority in principal amount of the Registrable Securities being sold or the Underwriters, and which are customarily delivered in underwritten offerings, to evidence the continued validity of the representations and warranties of the Issuers and the Guarantors made pursuant to clause (1) above and to evidence compliance with any customary conditions contained in an underwriting agreement; and

 

(xvii)                    So long as any Registrable Securities remain outstanding, cause each Additional Guarantor upon the creation or acquisition by the Partnership of such Additional Guarantor, to execute a counterpart to this Agreement in the form attached hereto as Annex A and to deliver such counterpart, together with an opinion of counsel as to the enforceability thereof against such entity, to the Initial Purchasers no later than five Business Days following the execution thereof.

 

(b)         In the case of a Shelf Registration Statement, the Issuers may require each Holder of Registrable Securities to furnish to the Issuers a Notice and Questionnaire and such other information regarding such Holder and the proposed disposition by such Holder of such Registrable Securities as the Issuers and the Guarantors may from time to time reasonably request in writing.

 

(c)          Each Participating Holder agrees that, upon receipt of any notice from the Issuers and the Guarantors of the happening of any event of the kind described in Section 3(a)(vi)(3) or Section 3(a)(vi)(5) hereof, such Participating Holder will forthwith discontinue disposition of Registrable Securities pursuant to the Shelf Registration Statement until such Participating Holder’s receipt of the copies of the supplemented or amended Prospectus and any Free Writing Prospectus contemplated by Section 3(a)(x) hereof and, if so directed by the Issuers and the Guarantors, such Participating Holder will deliver to the Issuers and the Guarantors all copies in its possession, other than permanent file copies then in such Participating Holder’s possession, of the Prospectus and any Free Writing Prospectus covering such Registrable Securities that is current at the time of receipt of such notice.

 

(d)         If the Issuers and the Guarantors shall give any notice to suspend the disposition of Registrable Securities pursuant to a Registration Statement, the Issuers and the Guarantors shall extend the period during which such Registration Statement shall be maintained effective pursuant to this Agreement by the number of days during the period from and including the date of the giving of such notice to and including the date when the Holders of such Registrable Securities shall have received copies of the supplemented or amended Prospectus or any Free Writing Prospectus necessary to resume such dispositions. The Issuers and the Guarantors may give any such notice only twice during any 365-day period and any such suspensions shall not exceed 30 days for each suspension and there shall not be more than two suspensions in effect during any 365-day period.

 

13

 

(e)          The Participating Holders who desire to do so may sell such Registrable Securities in an Underwritten Offering.  In any such Underwritten Offering, the investment bank or investment banks and manager or managers (each an “Underwriter”) that will administer the offering will be selected by the Holders of a majority in principal amount of the Registrable Securities included in such offering; provided, however, that such Underwriter must be reasonably satisfactory to the Partnership.

 

4.              Participation of Broker-Dealers in Exchange Offer.  (a)  The Staff has taken the position that any broker-dealer that receives Exchange Securities for its own account in the Exchange Offer in exchange for Securities that were acquired by such broker-dealer as a result of market-making or other trading activities (a “Participating Broker-Dealer”) may be deemed to be an “underwriter” within the meaning of the Securities Act and must deliver a prospectus meeting the requirements of the Securities Act in connection with any resale of such Exchange Securities.

 

The Issuers and the Guarantors understand that it is the Staff’s position that if the Prospectus contained in the Exchange Offer Registration Statement includes a plan of distribution containing a statement to the above effect and the means by which Participating Broker-Dealers may resell the Exchange Securities, without naming the Participating Broker-Dealers or specifying the amount of Exchange Securities owned by them, such Prospectus may be delivered by Participating Broker-Dealers (or, to the extent permitted by law, made available to purchasers) to satisfy their prospectus delivery obligation under the Securities Act in connection with resales of Exchange Securities for their own accounts, so long as the Prospectus otherwise meets the requirements of the Securities Act.

 

(b)         In light of the above, and notwithstanding the other provisions of this Agreement, the Issuers and the Guarantors agree to amend or supplement the Prospectus contained in the Exchange Offer Registration Statement for a period of up to 180 days after the last Exchange Date (as such period may be extended pursuant to Section 3(d) of this Agreement), in order to expedite or facilitate the disposition of any Exchange Securities by Participating Broker-Dealers consistent with the positions of the Staff recited in Section 4(a) above.  The Issuers and the Guarantors further agree that Participating Broker-Dealers shall be authorized to deliver such Prospectus (or, to the extent permitted by law, make available) during such period in connection with the resales contemplated by this Section 4.

 

(c)          The Initial Purchasers shall have no liability to the Issuers, any Guarantor or any Holder with respect to any request that they may make pursuant to Section 4(b) above.

 

5.              Indemnification and Contribution.  (a) The Issuers and the Guarantors, jointly and severally, agree to indemnify and hold harmless each Initial Purchaser and each Holder, their respective affiliates, directors and officers and each Person, if any, who controls any Initial Purchaser or any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, legal fees and other expenses incurred in connection with any suit, action or proceeding or any claim asserted, as such fees and expenses are incurred), joint or several, that arise out of, or are based upon, (1) any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement or any omission or alleged omission to state therein a material fact required to be stated therein or necessary in order to make the statements therein

 

14

 

not misleading, or (2) any untrue statement or alleged untrue statement of a material fact contained in any Prospectus, any Free Writing Prospectus or any “issuer information” (“Issuer Information”) filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or any omission or alleged omission to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case except insofar as such losses, claims, damages or liabilities arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to any Initial Purchaser or information relating to any Holder furnished to the Issuers in writing through Merrill or any selling Holder expressly for use therein.  In connection with any Underwritten Offering permitted by Section 3, the Issuers and the Guarantors, jointly and severally, will also indemnify the Underwriters, if any, selling brokers, dealers and similar securities industry professionals participating in the distribution, their respective affiliates and each Person who controls such Persons (within the meaning of the Securities Act and the Exchange Act) to the same extent as provided above with respect to the indemnification of the Holders, if requested in connection with any Registration Statement, any Prospectus, any Free Writing Prospectus or any Issuer Information.

 

(b)         Each Holder agrees, severally and not jointly, to indemnify and hold harmless the Issuers, the Guarantors, the Initial Purchasers and the other selling Holders, the directors of the Issuers and the Guarantors, each officer of the Issuers and the Guarantors who signed the Registration Statement and each Person, if any, who controls the Issuers, the Guarantors, any Initial Purchaser and any other selling Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the indemnity set forth in paragraph (a) above, but only with respect to any losses, claims, damages or liabilities that arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to such Holder furnished to the Issuers in writing by such Holder expressly for use in any Registration Statement, any Prospectus and any Free Writing Prospectus.

 

(c)          If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against any Person in respect of which indemnification may be sought pursuant to either paragraph (a) or (b) above, such Person (the “Indemnified Person”) shall promptly notify the Person against whom such indemnification may be sought (the “Indemnifying Person”) in writing; provided that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have under paragraph (a) or (b) above except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided, further, that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have to an Indemnified Person otherwise than under paragraph (a) or (b) above.  If any such proceeding shall be brought or asserted against an Indemnified Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person and any others entitled to indemnification pursuant to this Section 5 that the Indemnifying Person may designate in such proceeding and shall pay the fees and expenses of such counsel related to such proceeding, as incurred.  In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the Indemnifying

 

15

 

Person has failed within a reasonable time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that there may be legal defenses available to it that are different from or in addition to those available to the Indemnifying Person; or (iv) the named parties in any such proceeding (including any impleaded parties) include both the Indemnifying Person and the Indemnified Person and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them.  It is understood and agreed that the Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified Persons, and that all such fees and expenses shall be reimbursed as they are incurred.  Any such separate firm (x) for any Initial Purchaser, its affiliates, directors and officers and any control Persons of such Initial Purchaser shall be designated in writing by Merrill, (y) for any Holder, its directors and officers and any control Persons of such Holder shall be designated in writing by the Majority Holders and (z) in all other cases shall be designated in writing by the Issuers.  The Indemnifying Person shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss or liability by reason of such settlement or judgment.  Notwithstanding the foregoing sentence, if at any time an Indemnified Person shall have requested that an Indemnifying Person reimburse the Indemnified Person for fees and expenses of counsel as contemplated by this paragraph, the Indemnifying Person shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by the Indemnifying Person of such request and (ii) the Indemnifying Person shall not have reimbursed the Indemnified Person in accordance with such request prior to the date of such settlement.  No Indemnifying Person shall, without the written consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnification could have been sought hereunder by such Indemnified Person, unless such settlement (A) includes an unconditional release of such Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person, from all liability on claims that are the subject matter of such proceeding and (B) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person.

 

(d)         If the indemnification provided for in paragraphs (a) and (b) above is unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Issuers and the Guarantors from the offering of the Securities and the Exchange Securities, on the one hand, and by the Holders from receiving Securities or Exchange Securities registered under the Securities Act, on the other hand, or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) but also the relative fault of the Issuers and the Guarantors on the one hand and the Holders on the other in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations.  The relative fault of the Issuers and the Guarantors on the one hand and the Holders on the other shall be determined by reference to, among other

 

16

 

things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Issuers and the Guarantors or by the Holders and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

 

(e)          The Issuers, the Guarantors and the Holders agree that it would not be just and equitable if contribution pursuant to this Section 5 were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in paragraph (d) above.  The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities referred to in paragraph (d) above shall be deemed to include, subject to the limitations set forth above, any legal or other expenses incurred by such Indemnified Person in connection with any such action or claim.  Notwithstanding the provisions of this Section 5, in no event shall a Holder be required to contribute any amount in excess of the amount by which the total price at which the Securities or Exchange Securities sold by such Holder exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.  The Holders’ obligations to contribute pursuant to this Section 5 are several and not joint.

 

(f)           The remedies provided for in this Section 5 are not exclusive and shall not limit any rights or remedies that may otherwise be available to any Indemnified Person at law or in equity.

 

(g)          The indemnity and contribution provisions contained in this Section 5 shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of the Initial Purchasers or any Holder or any Person controlling any Initial Purchaser or any Holder, or by or on behalf of the Issuers or the Guarantors or the officers or directors of or any Person controlling the Issuers or the Guarantors, (iii) acceptance of any of the Exchange Securities and (iv) any sale of Registrable Securities pursuant to a Shelf Registration Statement.

 

6.              General.

 

(a)         No Inconsistent Agreements.  The Issuers and the Guarantors represent, warrant and agree that (i) the rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent with the rights granted to the holders of any other outstanding securities issued or guaranteed by any Issuer or any Guarantor under any other agreement and (ii) neither the Issuers nor any Guarantor has entered into, or on or after the date of this Agreement will enter into, any agreement that is inconsistent with the rights granted to the Holders of Registrable Securities in this Agreement or otherwise conflicts with the provisions hereof.

 

(b)         Amendments and Waivers.  The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given unless the Issuers and the Guarantors have obtained the written consent of Holders of at least a majority in aggregate principal amount of the outstanding Registrable Securities affected by such amendment, modification, supplement, waiver

 

17

 

or consent; provided that no amendment, modification, supplement, waiver or consent to any departure from the provisions of Section 5 hereof or any provision that could affect adversely the rights of any Holder of Registrable Securities to receive liquidated damages in the amount and on the payment dates as provided in Section 2(d) shall be effective as against any Holder of Registrable Securities unless consented to in writing by such Holder.  Any amendments, modifications, supplements, waivers or consents pursuant to this Section 6(b) shall be by a writing executed by each of the parties hereto.

 

(c)          Notices.  All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, registered first-class mail, telex, telecopier, or any courier guaranteeing overnight delivery (i) if to a Holder, at the most current address given by such Holder to the Partnership by means of a notice given in accordance with the provisions of this Section 6(c), which address initially is, with respect to the Initial Purchasers, the address set forth in the Purchase Agreement; (ii) if to the Issuers and the Guarantors, initially at the Partnership’s address set forth in the Purchase Agreement and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 6(c); and (iii) to such other persons at their respective addresses as provided in the Purchase Agreement and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 6(c).  All such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt is acknowledged, if telecopied; and on the next Business Day if timely delivered to an air courier guaranteeing overnight delivery.  Copies of all such notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee, at the address specified in the Indenture.

 

(d)         Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors, assigns and transferees of each of the parties, including, without limitation and without the need for an express assignment, subsequent Holders; provided that nothing herein shall be deemed to permit any assignment, transfer or other disposition of Registrable Securities in violation of the terms of the Purchase Agreement or the Indenture.  If any transferee of any Holder shall acquire Registrable Securities in any manner, whether by operation of law or otherwise, such Registrable Securities shall be held subject to all the terms of this Agreement, and by taking and holding such Registrable Securities such Person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement and such Person shall be entitled to receive the benefits hereof.  The Initial Purchasers (in their capacity as Initial Purchasers) shall have no liability or obligation to the Issuers or the Guarantors with respect to any failure by a Holder to comply with, or any breach by any Holder of, any of the obligations of such Holder under this Agreement.

 

(e)          Third Party Beneficiaries.  Each Holder shall be a third party beneficiary to the agreements made hereunder between the Issuers and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, and shall have the right to enforce such agreements directly to the extent it deems such enforcement necessary or advisable to protect its rights or the rights of other Holders hereunder.

 

18

 

(f)           Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

(g)          Headings.  The headings in this Agreement are for convenience of reference only, are not a part of this Agreement and shall not limit or otherwise affect the meaning hereof.

 

(h)         Governing Law.  This Agreement, and any claim, controversy or dispute arising under or related to this Agreement, shall be governed by and construed in accordance with the laws of the State of New York.

 

(i)             Entire Agreement; Severability.  This Agreement contains the entire agreement between the parties relating to the subject matter hereof and supersedes all oral statements and prior writings with respect thereto.  If any term, provision, covenant or restriction contained in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable or against public policy, the remainder of the terms, provisions, covenants and restrictions contained herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated.  The Issuers, the Guarantors and the Initial Purchasers shall endeavor in good faith negotiations to replace the invalid, void or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, void or unenforceable provisions.

 

[Signature Page to Follow.]

 

19

 

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

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
GLOBAL PARTNERS LP
    
	
 
    	
 
    
	
 
    	
By:   Global GP LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Daphne H. Foster
    
	
 
    	
 
    	
 
    	
Name:
    	
Daphne H.   Foster
    
	
 
    	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
GLOBAL GP LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Daphne H. Foster
    
	
 
    	
 
    	
 
    	
Name:
    	
Daphne H.   Foster
    
	
 
    	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
GLP FINANCE CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Daphne H. Foster
    
	
 
    	
 
    	
 
    	
Name:
    	
Daphne H.   Foster
    
	
 
    	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
GLOBAL OPERATING LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
Global   Partners LP, its Sole Member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Global GP   LLC, its General Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Daphne H. Foster
    
	
 
    	
 
    	
 
    	
Name:
    	
Daphne H.   Foster
    
	
 
    	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    

 

[Signature Page to Registration Rights Agreement]

 

 

	
 
    	
GLOBAL COMPANIES LLC
    
	
 
    	
GLOBAL ENERGY MARKETING LLC
    
	
 
    	
CHELSEA SANDWICH LLC
    
	
 
    	
ALLIANCE ENERGY LLC
    
	
 
    	
CASCADE KELLY HOLDINGS LLC
    
	
 
    	
GLOBAL CNG LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
Global   Operating LLC,
    
	
 
    	
 
    	
its Sole   Member
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Global   Partners LP,
    
	
 
    	
 
    	
its Sole   Member
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Global GP   LLC,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Daphne H. Foster
    
	
 
    	
 
    	
 
    	
Name:
    	
Daphne H.   Foster
    
	
 
    	
 
    	
 
    	
Title:
    	
Chief Financial   Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BURSAW OIL LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 By:
    	
Alliance   Energy LLC,
    
	
 
    	
 
    	
its Sole   Member
    
	
 
    	
 
    	
 
    
	
 
    	
 By:
    	
Global   Operating LLC,
    
	
 
    	
 
    	
its Sole   Member
    
	
 
    	
 
    	
 
    
	
 
    	
 By:
    	
Global   Partners LP,
    
	
 
    	
 
    	
its Sole   Member
    
	
 
    	
 
    	
 
    
	
 
    	
 By:
    	
Global GP   LLC,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Daphne H. Foster
    
	
 
    	
 
    	
 
    	
Name:
    	
Daphne H.   Foster
    
	
 
    	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    

 

[Signature Page to Registration Rights Agreement]

 

 

	
 
    	
GLOBAL MONTELLO GROUP CORP.
    
	
 
    	
GLEN HES CORP.
    
	
 
    	
WARREN EQUITIES INC.
    
	
 
    	
WAREX TERMINALS CORPORATION
    
	
 
    	
DRAKE PETROLEUM COMPANY, INC.
    
	
 
    	
PURITAN OIL COMPANY, INC.
    
	
 
    	
MARYLAND OIL COMPANY, INC.
    
	
 
    	
GLOBAL PARTNERS ENERGY CANADA ULC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Daphne H. Foster
    
	
 
    	
 
    	
 
    	
Name:
    	
Daphne H.   Foster
    
	
 
    	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    

 

[Signature Page to Registration Rights Agreement]

 

 

	
Accepted   as of the date hereof:
    	
 
    
	
 
    	
 
    
	
BOFA SECURITIES, INC.
    	
 
    
	
For   itself and on behalf of the
    	
 
    
	
several   Initial Purchasers listed
    	
 
    
	
in Schedule   1 hereto.
    	
 
    
	
 
    	
 
    
	
BOFA SECURITIES, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Brian   C. Fox
    	
 
    
	
 
    	
Name:
    	
Brian C.   Fox
    	
 
    
	
 
    	
Title:
    	
Managing   Director
    	
 
    

 

[Signature Page to Registration Rights Agreement]

 

 

Schedule 1

 

Initial Purchasers

 

BofA Securities, Inc.

 

J.P. Morgan Securities LLC

 

Wells Fargo Securities, LLC

 

BNP Paribas Securities Corp.

 

Citizens Capital Markets Inc.

 

MUFG Securities Americas Inc.

 

SG Americas Securities, LLC

 

BMO Capital Markets Corp.

 

Rabo Securities USA, Inc.

 

Santander Investment Securities Inc.

 

Credit Agricole Securities (USA) Inc.

 

TD Securities (USA) LLC

 

Capital One Securities, Inc.

 

Regions Securities LLC

 

 

Annex A

 

Counterpart to Registration Rights Agreement

 

The undersigned hereby absolutely, unconditionally and irrevocably agrees as a Guarantor (as defined in the Registration Rights Agreement, dated July 31, 2019 by and among Global Partners LP, a Delaware limited partnership, GLP Finance Corp., a Delaware corporation, the guarantors party thereto and BofA Securities, Inc., on behalf of itself and the other Initial Purchasers) to be bound by the terms and provisions of such Registration Rights Agreement.

 

IN WITNESS WHEREOF, the undersigned has executed this counterpart as of           ,     .

 

	
 
    	
[GUARANTOR]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:EXHIBIT
4(b)(i)

EXECUTIVE SERVICE AGREEMENT

THIS EXECUTIVE SERVICE AGREEMENT is made on the 3rd day of November 2010.

BETWEEN

	
  

 	
  

 	
  

 
	
  

 	
  (1)

 	
 Lloyds
 TSB Bank plc (the “Employer”);
 and

 
	
  

 	
  

 	
  

 
	
  

 	
  (2)

 	
 António
 Horta-Osório (the “Executive”).

 

Definitions used in this Agreement are set out in Clause
20.2 below.

IT IS AGREED as follows:

	
  

 	
  

 	
  

 
	
 1

 	
 Appointment Pre-Conditions and Term

 
	
  

 	
  

 
	
  

 	
 Appointment

 
	
  

 	
  

 	
  

 
	
 1.1

 	
 Provided
 the Executive has satisfied the conditions set out in Clause 1.2 below, the
 Employer shall employ the Executive initially as a Director and with effect
 from 7 March 2011 (or such later date as agreed) as Group Chief Executive
 (the “Employment”). On
 commencement of the Employment, the Executive shall be appointed to the board
 of directors of Lloyds Banking Group plc and to the boards of directors of
 the Employer, Bank of Scotland plc and HBOS plc.

 
	
  

 	
  

 
	
  

 	
 Pre-conditions

 
	
  

 	
  

 
	
 1.2

 	
 The
 Executive’s employment is conditional upon:

 
	
  

 	
  

 	
  

 
	
  

 	
 1.2.1

 	
 the
 Executive having been approved in respect of the Employment by the FSA under
 FSMA 2000 (“FSMA Approval”),

 
	
  

 	
  

 	
  

 
	
  

 	
 1.2.2

 	
 the
 Executive not being prevented from taking up employment under this Agreement
 by any obligation or duty owed to a third party, whether contractual or
 otherwise.

 
	
  

 	
  

 	
  

 
	
  

 	
 Term

 
	
  

 	
  

 	
  

 
	
 1.3

 	
 The
 Employment shall begin on such date as shall be agreed between the parties
 which unless otherwise agreed by the parties shall be a date no later than 7
 March 2011 (the “Commencement Date”)
 and shall continue until terminated:

 
	
  

 	
  

 	
  

 
	
  

 	
 1.3.1

 	
 by
 not less than 12 months’ notice given by the Employer to the Executive
 (provided that such notice may not expire before the second anniversary of
 the Commencement Date); or

 
	
  

 	
  

 	
  

 
	
  

 	
 1.3.2

 	
 by
 not less than 6 months’ notice given by the Executive to the Employer; or

 
	
  

 	
  

 	
  

 
	
  

 	
 1.3.3

 	
 under
 a provision set out in Clause 12.

 
	
  

 	
  

 	
  

 
	
 1.4

 	
 The
 Executive’s period of continuous employment with the Employer for the
 purposes of the law relating to redundancy and unfair dismissal is the
 Commencement Date.

 
	
  

 	
  

 	
  

 
	
 2

 	
 Duties of the Executive

 
	
  

 	
  

 
	
  

 	
 General Duties

 
	
  

 	
  

 
	
 2.1

 	
 The
 Executive will during the Employment:

 
	
  

 	
  

 
	
  

 	
 2.1.1

 	
 devote
 their whole time, attention and skill to the Employment during normal office
 hours and during such other times as may reasonably be required for the
 effective performance of the duties under this Agreement;

 
	
  

 	
  

 	
  

 
	
  

 	
 2.1.2

 	
 properly
 perform the duties and exercise the powers and functions that from time to
 time may reasonably be assigned to or vested in the Executive by the Board in
 relation to any Group Company;

 
	
  

 	
  

 	
  

 
	
  

 	
 2.1.3

 	
 accept
 any offices or directorships as reasonably required by the Employer;

 
	
  

 	
  

 	
  

 
	
  

 	
 2.1.4

 	
 comply
 with all rules, regulations policies and codes issued by the Employer that
 apply to the Employment;

 
	
  

 	
  

 	
  

 
	
  

 	
 2.1.5

 	
 comply
 with all rules, regulations and codes imposed or recommended by any industry
 or regulatory body that apply to the Employment; 

 
	
  

 	
  

 	
  

 
	
  

 	
 2.1.6

 	
 discuss
 regularly with the Chairman the conduct of the Executive’s duties, plans for
 the future performance of the duties and of any conflict of interest to which
 the Executive may become subject and promptly inform the Chairman if there
 are major issues relating to the foregoing of which the Chairman ought
 reasonably to be informed without delay;

 
	
  

 	
  

 	
  

 
	
  

 	
 2.1.7

 	
 comply
 with any policy directions or reasonable other directions issued by the
 Employer;

 
	
  

 	
  

 	
  

 
	
  

 	
 2.1.8

 	
 use
 best endeavours to promote the interests and reputation of every Group
 Company; and

 
	
  

 	
  

 	
  

 
	
  

 	
 2.1.9

 	
 keep
 the Employer advised of the Executive’s current UK residential address.

 
	
  

 	
  

 	
  

 
	
  

 	
 Interests of the Executive

 
	
  

 	
  

 	
  

 
	
 2.2

 	
 The
 Executive will disclose promptly in writing to the Employer any interests of
 his (for example, shareholdings or directorships) whether or not of a
 commercial or business nature (except interests in any Group Company). The
 Executive has, prior to signing this Agreement, disclosed in writing all such
 interests and without prejudice to the Executive’s obligations under any
 other provision of this Agreement, the Employer consents to the Executive
 continuing to hold such interests and such other interests or appointments as
 may be approved in advance by the Chairman.

 
	
  

 	
  

 
	
 2.3

 	
 Subject
 to Clauses 2.2 and 2.4, during the Employment (including any Garden Leave
 Period) the Executive will not be directly or indirectly engaged or concerned
 in the conduct of any activity of a commercial or business nature (except as
 a representative of the Employer or with the written consent of the
 Chairman). 

 
	
  

 	
  

 
	
 2.4

 	
 The
 Executive may hold or be interested in investments which amount to not more
 than one per cent of the issued investments of any class or any one company. 

 

	
  

 	
  

 
	
 2.5

 	
 The
 Executive will (and will use best endeavours to ensure that the Executive’s
 spouse and any dependents) comply with all rules of law, including Part V of
 the Criminal Justice Act 1993, the Model Code appended to Chapter 16 of the
 Listing Rules of the United Kingdom Listing Authority, the FSA’s Code of
 Market Conduct and all other rules, policies or codes applicable to the
 Employer or the Executive from time to time in relation to the holding or trading
 of securities (in each case as amended or replaced from time to time).

 
	
  

 	
  

 
	
 2.6

 	
 The
 Executive will not directly or indirectly receive any benefit from any person
 having or seeking to have business transactions with any Group Company (other
 than reasonable corporate hospitality and seasonal or occasional gifts of
 limited value).

 
	
  

 	
  

 
	
  

 	
 Approved Person

 
	
  

 	
  

 
	
 2.7

 	
 During
 the period of this Agreement the Executive will not do anything which could
 cause the Executive to be disqualified from continuing to act as a director
 of any Group Company or lose approval as an “Approved Person” by the FSA under the FSMA 2000 in respect
 of the Employment. If the Executive is not an “Approved Person” at the date
 of appointment under this Agreement, then the Executive will not do anything
 which would cause the Executive to be prevented from becoming an “Approved
 Person” in the future. 

 
	
  

 	
  

 
	
  

 	
 Location

 
	
  

 	
  

 
	
 2.8

 	
 The
 Executive’s normal place of work will be the Employer’s London Head Office
 from time to time (currently 25 Gresham Street, London). The Executive shall
 travel to such places within or outside the United Kingdom as the Employer
 may reasonably require.

 
	
  

 	
  

 
	
 3

 	
 Remuneration

 
	
  

 	
  

 
	
 3.1

 	
 During
 the Employment the Employer will pay the Executive a salary of £1,035,000 per annum or such higher
 annual salary as may be notified to the Executive from time to time (“Basic Salary”). Basic Salary will be
 reviewed (but without any obligation to increase) annually from (and
 including with effect from) 1 January 2011. Basic Salary will be paid in
 equal monthly instalments on or about the 20th day of each month. The
 Executive shall maintain a bank account with a subsidiary of the Lloyds
 Banking Group into which Basic Salary shall be paid. 

 
	
  

 	
  

 
	
 3.2

 	
 The
 Executive agrees to waive payment of any director’s fees or other
 remuneration payable in respect of any directorship held by the Executive
 with any Group Company.

 
	
  

 	
  

 
	
 3.3

 	
 The
 Executive will be paid such bonus at such times and subject to such
 conditions as the Employer in its sole and absolute discretion may from time
 to time determine. In accordance with clause 4.9 below payment of such a
 bonus or participation in a bonus scheme is not a contractual entitlement.

 
	
  

 	
  

 
	
 3.4

 	
 The
 Executive will be eligible to participate in any all-employee share schemes
 or other benefits provided to all employees, or to be considered for
 participation in any discretionary scheme, operated or offered by the
 Employer or any Group Company from time to time in accordance with the
 relevant rules (including without limitation any rules as to eligibility). In
 accordance with clause 4.9 below participation in any share option, share
 incentive or other employee benefit plan, scheme or arrangement is not a
 contractual entitlement except to the extent of any specific awards or entitlements
 made or notified to the Executive and, for the avoidance of doubt it is
 agreed that the provisions set out in Clauses 3.5 and 5 are contractual and
 binding on the Employer.

 
	
  

 	
  

 
	
  

 	
 2011 Share Award

 
	
  

 	
  

 
	
 3.5

 	
 As
 soon as reasonably practicable following commencement of the Employment, the
 Employer will procure the grant to the Executive of an award over shares in
 Lloyds Banking Group plc with a value of 420% of Basic Salary on the same
 terms and conditions as those applying to awards under the Lloyds TSB Long-Term
 Incentive Plan 2006 or other replacement long term incentive plan of the
 Group (the “LTIP”). 

 
	
  

 	
  

 
	
 4

 	
 Pension and Other Benefits

 
	
  

 	
  

 
	
  

 	
 Pension allowance

 
	
  

 	
  

 
	
 4.1

 	
 The
 Employer will pay directly to the Executive or to a registered pension scheme
 (including Your Tomorrow or other registered pension scheme as defined in the
 Finance Act 2004) nominated by him an amount equal to 50% of the annual
 Reference Salary from time to time as a pension allowance. 

 
	
  

 	
  

 
	
  

 	
 The
 Executive acknowledges that in signing this contract the Executive will be
 deemed to have opted out of the “personal accounts” arrangements due to be
 implemented from 2012 in the United Kingdom (except and to the extent that
 this is the arrangement which the Employer designates as the Scheme).

 
	
  

 	
  

 
	
  

 	
 Currently,
 a Contracting-Out Certificate pursuant to the provisions of the Pensions Act
 1995 is not in force in respect of the Executive’s employment. 

 
	
  

 	
  

 
	
  

 	
 The
 pension allowance paid by the Employer will not be taken into account for the
 purposes of calculating bonus or other such payments and shall include the
 Executive’s 4% flexible benefit allowance.

 
	
  

 	
  

 
	
  

 	
 The
 Executive acknowledges and agrees that any payments to or in respect of him
 (other than to a registered pension scheme as defined in the Finance Act
 2004) under this Clause will be subject to deduction of income tax and
 secondary national insurance contributions and that the net amount only after
 such deductions shall be received by or in respect of the Executive.

 
	
  

 	
  

 
	
  

 	
 To
 the extent that any part of the pension allowance under this Clause is paid
 to a registered pension scheme (as defined in the Finance Act 2004) the
 Executive acknowledges and agrees that he will be solely liable for any
 annual allowance charge, special annual allowance charge or lifetime
 allowance charge in respect thereof.

 

	
  

 	
  

 	
  

 
	
  

 	
 Pension Arrangement

 
	
  

 	
  

 	
  

 
	
 4.2

 	
 This
 Clause shall apply where the Executive loses rights to future payments
 pursuant to clauses Seventh, Eighth or Ninth of the Senior Executive Contract
 dated 29 April 2009 between Banco Santander, S.A. and the Executive.

 
	
  

 	
  

 	
  

 
	
  

 	
 In
 recognition that the Executive will by reason of accepting employment with
 the Employer, suffer significant loss in relation to future payments on
 retirement by virtue of his loss of rights as referred to in this Clause, the
 Employer has agreed to establish for the Executive as soon as reasonably
 practicable an unfunded pension arrangement for and in respect of the
 Executive (in terms to be agreed with the Executive and subject to complying
 with any requirements of the FSA, including its Remuneration Code, as amended
 from time to time) to compensate him in part for the loss of future payments
 under his existing arrangements.

 
	
  

 	
  

 	
  

 
	
  

 	
 Salary sacrifice arrangements

 
	
  

 	
  

 	
  

 
	
 4.3

 	
 The
 Employer has or may at some stage introduce a salary sacrifice arrangement.
 Under this arrangement some or all of the Executive’s pension contributions
 (if any) payable to the Your Tomorrow scheme from time to time (which may at
 the Employer’s discretion include both regular or mandatory contributions or
 voluntary contributions) will be paid on the Executive’s behalf by the
 Employer in return for a reduction in the Executive’s salary (although
 pension and life cover benefits will be calculated without regard to this
 reduction). By signing and/or entering into this contract the Executive has
 agreed to this option. The Executive is therefore automatically a member of
 the salary sacrifice scheme (if one is already in place) or alternatively
 will join the salary sacrifice arrangement if it is introduced unless the
 Executive chooses to opt out as permitted under the terms of the salary
 sacrifice arrangement.

 
	
  

 	
  

 
	
  

 	
 Car Allowance and car

 
	
  

 	
  

 	
  

 
	
 4.4

 	
 The
 Executive shall be eligible to receive a non pensionable cash allowance of
 £1,000 payable each month. In addition, a car and driver will be provided for
 the Executive for business and if he so wishes reasonable personal use
 (appropriate for the position of Group Chief Executive and provided in a
 manner consistent with other Executive Directors). The Executive shall be
 responsible for any income tax arising in respect of such personal use.

 
	
  

 	
  

 
	
  

 	
 Life Cover

 
	
  

 	
  

 	
  

 
	
 4.5

 	
 The
 Executive will be provided with Life Cover (in a manner consistent with the
 Executive Directors).

 
	
  

 	
  

 	
  

 
	
  

 	
 The
 amount of Life Cover in the event of the Executive’s death during the
 Employment will be equal to eight times the annual Reference Salary (as
 revised from time to time), irrespective of whether or not the Executive is a
 member of any pension scheme operated by the Employer. 

 
	
  

 	
  

 
	
  

 	
 Such
 Life Cover will be provided under the terms of any arrangement designated by
 the Employer and notified to the Executive (subject to the proviso that any
 Life Cover in excess of the Lifetime Allowance applicable to registered
 pension schemes will be provided by the Employer or through an arrangement
 other than a registered pension scheme).

 
	
  

 	
  

 
	
  

 	
 Private Medical Cover

 
	
  

 	
  

 	
  

 
	
 4.6

 	
 The
 Executive may participate during the Employment in the Employer’s
 international private health scheme. International private health cover will
 be provided for the Executive, his spouse and his dependent children subject
 to and in accordance with such terms from time to time on which any appointed
 supplier provides cover (including eligibility requirements). If and to the
 extent that the Employer reduces, varies or withdraws the scheme for all
 other participants, the private health cover arrangements in this clause may
 also be reduced, varied or withdrawn by the Employer to the same extent. 

 
	
  

 	
  

 
	
  

 	
 Health Screening

 
	
  

 	
  

 
	
 4.7

 	
 The
 Executive will be eligible to receive, and expected to undertake, an annual
 confidential medical screening by a supplier appointed by the Employer.

 
	
  

 	
  

 
	
  

 	
 Deductions

 
	
  

 	
  

 	
  

 
	
 4.8

 	
 For
 the avoidance of doubt, any and all remuneration or benefits provided by
 virtue of this Agreement or the Employment shall be subject to such
 deductions for tax and employees National Insurance as the Employer is
 required to make by law or the tax and/or National Insurance authorities. 

 
	
  

 	
  

 
	
  

 	
 Other Benefits

 
	
  

 	
  

 
	
 4.9

 	
 The
 Executive acknowledges that (except for any specific awards or entitlements
 notified to the Executive individually or by a general notice to staff and
 subject to the other provisions of this Agreement including the provisions
 set out in Clauses 3.5 and 5 which are contractual) participation in any
 bonus, share option, share incentive or other employee benefit plan, scheme
 or arrangement (“Plan”) is not a contractual entitlement and on termination
 of the Employment the Executive will have no right to compensation or
 otherwise against the Employer or any other Group Company by reason of no
 longer being able to participate in any such Plan. 

 
	
  

 	
  

 
	
 5

 	
 Share Buy-Out Awards

 
	
  

 	
  

 
	
  

 	
 Awards

 
	
  

 	
  

 
	
 5.1

 	
 In
 recognition that the Executive’s outstanding awards over Santander shares
 will lapse on accepting Employment with the Employer, the Employer has agreed
 that it will, as soon as reasonably practicable following commencement of the
 Employment, procure the grant to the Executive of awards over shares in
 Lloyds Banking Group plc on the following bases. The Employer may change any
 of the vesting dates specified in Clauses 5.1.1 to 5.1.3 below to a later
 date (such time being a date which is as close as possible to the original
 vesting date specified below), at the time of grant of the Stock Buy-Out
 Awards or subsequently if it becomes necessary to do so to comply with the
 Listing Rules of the UK Listing Authority or to take account of the actual
 Commencement Date.

 
	
  

 	
  

 
	
  

 	
 5.1.1

 	
 in
 respect of shares the Executive could otherwise have acquired in 2011 and
 2012 under the Santander performance share plan, an award over a number of
 Lloyds Banking Group plc shares whose value on the date of commencement of
 Employment equates to the value on 29 October 2010 of 91% of the Santander
 shares under the relevant Santander performance share plan awards. The award
 will vest in two equal tranches on 15 June 2011 and 15 June 2012 (or the
 immediately preceding business day) as long as the Executive remains in
 Employment, except as provided in clauses 5.4 and 5.5 and subject to the deduction
 of income tax and any other withholding obligations for which the Executive
 is liable;

 

	
  

 	
  

 	
  

 
	
  

 	
 5.1.2

 	
 in
 respect of shares the Executive could otherwise have acquired in 2013 under
 the Santander performance share plan, an award over a number of Lloyds
 Banking Group plc shares whose value on the date of commencement of
 Employment equates to the value on 29 October 2010 of the Santander shares
 under the relevant Santander performance share plan award. The award will
 vest on 15 June 2013 (or the immediately preceding business day) if a
 performance condition based on the TSR performance of Lloyds Banking Group
 plc against the peer group currently set in relation to the Santander shares
 amended to include Santander is satisfied, as long as the Executive remains
 in Employment, except as provided in clauses 5.4 and 5.5 and subject to the
 deduction of income tax and any other withholding obligations for which the
 Executive is liable; and

 
	
  

 	
  

 	
  

 
	
  

 	
 5.1.3

 	
 in
 respect of shares the Executive could otherwise have acquired under the
 Santander matched deferred bonus plan, an award over a number of Lloyds
 Banking Group plc shares whose value on the date of commencement of
 Employment equates to the value on 29 October 2010 of 100% of the Santander
 shares under the relevant Santander matched deferred bonus plan awards. The
 award will vest in three equal tranches on the last business day in January
 of 2011, 2012 and 2013 as long as the Executive remains in Employment, except
 as provided in clauses 5.4 and 5.5 and subject to the deduction of income tax
 and any other withholding obligations for which the Executive is liable; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (together
 referred to as the “Share Buy-Out Awards”).

 
	
  

 	
  

 	
  

 
	
 5.2

 	
 In
 recognition that the Executive’s award of delayed vesting compensation which
 would otherwise have been payable on 7 February 2011 will lapse on accepting
 Employment with the Employer, the Employer has agreed that it will, as soon
 as reasonably practicable following commencement of the Employment, procure
 the grant to the Executive of an award of £516,000 payable in three equal
 tranches on or as soon as reasonably practicable after 7 February 2011 (or
 the Commencement date, whichever is later), 7 February 2012 and 7 February
 2013 subject to the deduction of income tax and any other withholding
 obligations for which the Executive is liable. 

 
	
  

 	
  

 	
  

 
	
 5.3

 	
 For
 the purposes of calculating the value of the Share Buy-Out Awards referred to
 in clauses 5.1.1 to 5.1.3, the value of the Santander shares will be £8.085,
 being the agreed Pounds Sterling equivalent of the closing price on 29
 October 2010 and the value for the shares of Lloyds Banking Group plc will be
 the mid market quotation in Pounds Sterling on the date of commencement of
 Employment. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Forfeiture and Malus

 
	
  

 	
  

 	
  

 
	
 5.4

 	
 This
 Clause 5.4 is subject to Clauses 5.5 and 5.6. Upon termination of the
 Employment for any reason, any Share Buy-Out Award that has vested will be
 retained by the Executive and not lapse. If the Executive ceases to be an
 employee of the Group:

 
	
  

 	
  

 	
  

 
	
  

 	
 5.4.1

 	
 because
 he is Dismissed for Cause or by reason of his voluntary resignation (i.e. in
 circumstances in which he is not entitled to resign without notice owing to
 the conduct of the Group), any Share Buy-Out Award which has not yet vested
 will lapse on the Termination Date; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 5.4.2

 	
 for
 any other reason (including Absence Dismissal under Clause 12.3) any Share
 Buy-Out Awards which have not vested will not lapse and will vest on the
 vesting dates specified in the Share Buy-Out Awards subject to such
 performance conditions as are referred to in Clause 5.1. 

 
	
  

 	
  

 	
  

 
	
 5.5

 	
 The
 Board may in its absolute discretion determine that the number of Shares over
 which a Share Buy-Out Award may vest may be reduced (to nil if appropriate)
 as a result of:

 
	
  

 	
  

 	
  

 
	
  

 	
 5.5.1

 	
 the
 Lloyds Banking Group plc annual report and accounts having been materially
 restated at any time during the period between the grant of the Share Buy-Out
 Award and the vesting date of the Share Buy-Out Award as a result of the
 conduct of the Executive other than material restatement due to a change in
 accounting policy or to rectify a minor error;

 
	
  

 	
  

 	
  

 
	
  

 	
 5.5.2

 	
 the
 Executive having, in the reasonable opinion of the Board, deliberately misled
 the management of the Lloyds Banking Group plc, the market and/or Lloyds
 Banking Group plc shareholders regarding the financial performance of Lloyds
 Banking Group plc at any time during the period between the grant of the
 Share Buy-Out Award and the vesting date of the Share Buy-Out Award;

 
	
  

 	
  

 	
  

 
	
  

 	
 5.5.3

 	
 the
 Executive’s actions at any time during the period between the grant of the
 Share Buy-Out Award and the vesting date of the Share Buy-Out Award having,
 in the reasonable opinion of the Board, caused harm to the reputation of the
 Group; or

 
	
  

 	
  

 	
  

 
	
  

 	
 5.5.4

 	
 any
 other factors considered by the Board to be relevant which are compliant with
 and no more onerous than requirements under the Financial Services Authority
 Code on Remuneration Practices.

 
	
  

 	
  

 	
  

 
	
 5.6

 	
 Any
 Share Buy-Out Awards granted in accordance with clause 5.1 and any award
 granted in accordance with clause 5.2, must satisfy any relevant requirements
 of the FSA, including its Remuneration Code as amended from time to time.

 
	
  

 	
  

 	
  

 
	
 5.7

 	
 The
 Employer and the Executive have agreed the basis of the grant of the above
 Share Buy-Out Awards and the award referred to in clause 5.2 based on the
 Form 20-F issued by Santander on 10 June 2010 (“20-F”). After signature of
 this Agreement, the Executive will at the Employer’s request use all
 reasonable endeavours to obtain such additional documents as are reasonably
 requested by the Employer from Santander and if there are any discrepancies
 between the arrangements agreed between the Executive and the Employer and
 the arrangements the Executive had at Santander, such discrepancies will be
 resolved between the parties in good faith and with the objective that the
 Executive is not overcompensated in relation to the Share Buy-Out Awards and
 the award referred to in clause 5.2. 

 
	
  

 	
  

 	
  

 
	
 5.8

 	
 References
 in this clause to various Santander plans shall be to those plans as named
 and described in the 20-F.

 
	
  

 	
  

 	
  

 
	
 6

 	
 Expenses

 
	
  

 	
  

 	
  

 
	
 6.1

 	
 The
 Employer will refund to the Executive all reasonable expenses properly
 incurred by the Executive in performing the duties under this Agreement,
 provided that these are incurred in accordance with Employer’s policy from
 time to time. The Employer will require the Executive to produce receipts or
 other documents as proof for any expenses claimed.

 

	
  

 	
  

 	
  

 
	
 7

 	
 Holiday

 
	
  

 	
  

 	
  

 
	
 7.1

 	
 The
 Executive shall be entitled during the Employment to 30 working days holiday
 in each calendar year plus bank holidays. Holiday may only be taken at such
 time or times as the Chairman shall approve. A maximum of five days holiday
 not taken in a particular year may be carried forward to be taken by 31 March
 in the next year. The Executive’s holiday entitlement shall be pro rated for
 the year in which the Employment begins and for the year in which the
 Employment ends. 

 
	
  

 	
  

 	
  

 
	
 8

 	
 Confidentiality

 
	
  

 	
  

 	
  

 
	
 8.1

 	
 Without
 prejudice to the common law duties which the Executive owes to the Employer,
 the Executive agrees to preserve the confidentiality of any trade secrets
 and/or confidential information belonging or relating to the Employer or its
 employees or relating to the Works, in whatever form (written, oral, visual
 and electronic), whether of a technical or commercial nature, disclosed to
 the Executive by or on behalf of the Employer or its employees or otherwise
 comes under the control of the Executive in the course of the Employment (“Confidential Information”), and agrees
 not to (except in so far as may be strictly necessary for the proper
 performance of the duties under this Agreement or with the prior written
 consent of the Chairman), copy, use, discuss with or disclose to any third
 party any Confidential Information. This provision will not apply to
 Confidential Information which becomes public other than through unauthorised
 disclosure by the Executive. The Executive will use best endeavours to
 prevent the unauthorised copying, use or disclosure of such information by
 any third party.

 
	
  

 	
  

 	
  

 
	
 8.2

 	
 In
 the course of the Employment the Executive is likely to obtain Confidential
 Information belonging or relating to other Group Companies or other persons.
 The Executive will treat such information as if it falls within the terms of
 Clause 8.1 and Clause 8.1 will apply with any necessary amendments to such
 information. If requested to do so by the Employer, the Executive will enter
 into an agreement with other Group Companies or any other persons in the same
 terms as Clause 8.1 with any amendments necessary to give effect to this
 provision.

 
	
  

 	
  

 	
  

 
	
 8.3

 	
 The
 Executive agrees not to, either during or after the termination of the
 Employment (without the written consent of the Chairman) make any public
 announcement, statement or comment (whether to the media or otherwise)
 concerning:

 
	
  

 	
  

 	
  

 
	
  

 	
 8.3.1

 	
 the
 affairs of the Employer or any other Group Company; or

 
	
  

 	
  

 	
  

 
	
  

 	
 8.3.2

 	
 the
 circumstances of the termination of the Employment and any offices with any
 other Group Company (except he may disclose the reason for such termination
 to any prospective or future employer and without prejudice to Clause 8.3.3.
 he may make announcements, statements and comments consistent with
 announcements, statements and comments made by or on behalf of any Group
 Company regarding such termination); or

 
	
  

 	
  

 	
  

 
	
  

 	
 8.3.3

 	
 anything
 that may be detrimental to the Employer or any other Group Company:

 
	
  

 	
  

 	
  

 
	
  

 	
 except
 as required by law or any regulatory body or as appropriate in connection
 with the proper performance of the duties under this Agreement.

 
	
  

 	
  

 	
  

 
	
 8.4

 	
 Nothing
 in this Agreement will prevent the Executive from making a “protected
 disclosure” in accordance with the provisions of the Employment Rights Act
 1996.

 
	
  

 	
  

 	
  

 
	
 9

 	
 Intellectual Property Rights

 
	
  

 	
  

 	
  

 
	
 9.1

 	
 The
 Executive shall disclose to the Employer promptly following creation details
 of all Works made, created or developed, wholly or partially, by the
 Executive at any time during the course of the Employment (whether or not
 during working hours or using Group premises or resources). The Executive
 acknowledges that all Intellectual Property Rights subsisting (or which may
 in the future subsist) in any Work shall automatically, on creation, vest in
 the Employer absolutely. To the extent that they do not vest automatically,
 the Executive hereby assigns (or where immediate assignment is not effective,
 agrees to assign) to the Employer, with full title guarantee, all the
 Executive’s Intellectual Property Rights in any Work. Pending assignment, the
 Executive shall hold the Intellectual Property Rights on trust for the
 Employer. The Executive agrees to promptly execute all documents and do all
 acts as may, in the opinion of the Employer, be necessary to give effect to
 this Clause 9.1.

 
	
  

 	
  

 	
  

 
	
 9.2

 	
 So
 far as permitted by applicable laws, the Executive hereby irrevocably waives
 all moral rights under Chapter IV (Moral Rights) of Part 1 of the Copyright,
 Designs and Patents Act 1988 (and all similar rights in other jurisdictions),
 which he may have or will have in any Work.

 
	
  

 	
  

 	
  

 
	
 9.3

 	
 The
 Executive hereby irrevocably appoints the Employer to act as the Executive’s
 attorney to do everything necessary to give the Employer the full benefit of
 the rights under this Clause 9.

 
	
  

 	
  

 	
  

 
	
 9.4

 	
 The
 rights and obligations of the parties under this Clause 9 shall continue
 after expiry or termination of this Agreement.

 
	
  

 	
  

 	
  

 
	
 10

 	
 Garden Leave and Suspension

 
	
  

 	
  

 	
  

 
	
  

 	
 Garden Leave

 
	
  

 	
  

 	
  

 
	
 10.1

 	
 At
 any time after notice to terminate the Employment is given by either party,
 or if the Executive resigns without giving due notice in circumstances in
 which he is not entitled to do so and the Employer does not accept the
 Executive’s resignation, the Employer may require the Executive to take a
 period of absence called garden leave (the “Garden
 Leave Period”). The Garden Leave Period shall last for such period
 or periods of the notice period as the Employer shall in its absolute
 discretion determine, provided they shall not exceed 6 months in aggregate.
 The provisions of Clause 10.2 to Clause 10.8 apply to any Garden Leave
 Period. 

 
	
  

 	
  

 	
  

 
	
 10.2

 	
 During
 the Garden Leave Period the Executive will not, without prior written consent
 of the Chairman, be employed or otherwise engaged in the conduct of any
 activity, whether or not of a business nature (except as permitted by Clauses
 2.2 and 2.4). The Employer will have no obligation to provide work to the
 Executive during the Garden Leave Period. Further, the Executive will not,
 unless requested or permitted by the Employer:

 
	
  

 	
  

 	
  

 
	
  

 	
 10.2.1

 	
 enter
 or attend the premises of the Employer or any other Group Company; or

 
	
  

 	
  

 	
  

 
	
  

 	
 10.2.2

 	
 contact
 or have any communication with any customer or client of the Employer or any
 other Group Company in relation to the business of the Employer or any other
 Group Company; or

 

	
  

 	
  

 	
  

 
	
  

 	
 10.2.3

 	
 contact
 or have any communication with any employee, officer, director, agent or
 consultant of the Employer or any other Group Company in relation to the
 business of the Employer or any other Group Company; or

 
	
  

 	
  

 	
  

 
	
  

 	
 10.2.4

 	
 remain
 or become involved in any aspect of the business of the Employer or any other
 Group Company except as required by such companies.

 
	
  

 	
  

 	
  

 
	
 10.3

 	
 During
 the Garden Leave Period (and save to the extent that he is on holiday taken
 by him pursuant to Clause 7) the Executive shall be available to (on
 reasonable notice) deal with requests for information, be available for
 meetings (unless the Employer has agreed in writing that the Executive may be
 unavailable for a period) and to advise on matters relating to work.

 
	
  

 	
  

 	
  

 
	
 10.4

 	
 During
 the Garden Leave Period the Employer may require the Executive to comply with
 the provisions of Clause 13, except that there will be no requirement to
 return any company car in the possession of the Executive. The Executive may
 resign immediately from any and all directorships held in the Employer and
 any other Group Company or any company where such directorship(s) is (or are)
 held as a consequence or requirement of the Employment. The Employer may also
 require the Executive to resign immediately from any directorship held in the
 Employer, any other Group Company or any other company where such
 directorship is held as a consequence or requirement of the Employment,
 unless the Executive is required or permitted by the Employer to perform
 duties to which any such directorship relates in which case the Executive may
 retain such directorships while those duties are ongoing. The Executive
 hereby irrevocably appoints the Employer to be the Executive’s attorney to
 execute any instrument and do anything in the Executive’s name and on their
 behalf to effect the Executive’s resignation if the Executive fails to do so
 in accordance with this Clause 10.4

 
	
  

 	
  

 	
  

 
	
 10.5

 	
 During
 the Garden Leave Period, the Executive will be entitled to receive the Basic
 Salary and all contractual benefits in accordance with the terms of this
 Agreement. For the avoidance of doubt the Executive shall not be entitled to
 receive any new award under any bonus or other incentive scheme. Any unused
 holiday accrued at the commencement of the Garden Leave Period and any
 holiday accrued during any Garden Leave Period will (to the extent not
 actually taken by the Executive pursuant to Clause 7) be deemed to be taken
 by the Executive during the Garden Leave Period in relation to day(s) (not
 being a Saturday, Sunday, public or bank holiday) during which the Executive
 was not required to deal with information requests, attend meetings, give
 advice or otherwise undertake any duties in connection with the Employment.

 
	
  

 	
  

 	
  

 
	
 10.6

 	
 The
 Executive agrees and acknowledges that during any Garden Leave Period the
 Employer may appoint another person to carry out the duties of his role in
 substitution of the Executive.

 
	
  

 	
  

 	
  

 
	
 10.7

 	
 At
 the end of the Garden Leave Period, the Employer may, at its sole and
 absolute discretion, make a payment in lieu of the balance of the period of
 notice in accordance with Clause 12.5 (less any deductions the Employer is
 required by law to make). For the avoidance of doubt, this Clause shall not
 affect the Executive’s rights and entitlements (if any) on termination of the
 Employment as expressly referred to in this Agreement or in any other written
 agreement between the parties.

 
	
  

 	
  

 	
  

 
	
 10.8

 	
 All
 duties of the Employment (whether express or implied), including, but not
 limited to, the Executive’s duties of fidelity, good faith and under Clauses
 2.1, 2.2 and 2.3 shall continue throughout the Garden Leave Period (except
 insofar as they are naturally inconsistent with the terms applicable to the
 Garden Leave). 

 
	
  

 	
  

 	
  

 
	
  

 	
 Suspension

 
	
  

 	
  

 	
  

 
	
 10.9

 	
 Without
 prejudice to the Executive’s rights to remuneration and other benefits
 hereunder, the Employer shall have the right at any time to require the
 Executive not to attend at any place of work or otherwise to suspend the
 Executive from the performance of any duties under this Agreement for the
 purpose of undertaking any investigation in relation to any material
 complaint against the Executive or failure to obtain or hold any regulatory
 approvals (provided that the Employer does not do so for longer than is
 necessary to ensure a thorough but prompt investigation). During the period
 of such suspension the Employer may assign the Executive’s duties, titles or
 powers to another. For the avoidance of doubt, during any period of
 suspension the rights of the Employer and duties of the Executive set out in
 clauses 10.2 – 10.8 above shall apply (save that the Employer shall not
 require the Executive to resign from any directorships unless the complaint
 is made out against him and otherwise subject to any FSA or other regulatory
 requirements). 

 
	
  

 	
  

 	
  

 
	
 11

 	
 Restrictions after termination of Employment

 
	
  

 	
  

 	
  

 
	
 11.1

 	
 The
 Executive is likely to obtain Confidential Information and personal knowledge
 of and influence over employees of the Group during the course of the
 Employment. To protect these interests of the Employer, the Executive agrees
 with the Employer that the Executive will be bound by the following:

 
	
  

 	
  

 	
  

 
	
  

 	
 11.1.1

 	
 subject
 to clause 11.2 throughout the Employment and during the period of 6 months
 commencing with the Relevant Date the Executive will not (either on their own
 behalf or with any other person, whether directly or indirectly) be employed
 in, or carry on (or be a director of any company engaged in) any business
 which, is or is about to be in competition with any business of the Employer
 (or any other Group Company) being carried on by such company at the Relevant
 Date provided the Executive was concerned or involved with that business to a
 material extent at any time during the 12 months prior to the Relevant Date; 

 
	
  

 	
  

 	
  

 
	
  

 	
 11.1.2

 	
 throughout
 the Employment and during the period of 12 months commencing on the Relevant
 Date the Executive will not (either on their own behalf or for or with any
 other person, whether directly or indirectly) entice or try to entice away
 from the Employer or (as the case may be) any other Group Company any
 Restricted Employee;

 
	
  

 	
  

 	
  

 
	
  

 	
 11.1.3

 	
 throughout
 the Employment and during the period of 12 months commencing on the Relevant
 Date the Executive will not (either on their own behalf or for or with any
 other person, whether directly or indirectly) employ or engage or try to
 employ or engage any Restricted Employee;

 
	
  

 	
  

 	
  

 
	
  

 	
 11.1.4

 	
 throughout
 the Employment and during the period of 12 months commencing on the Relevant
 Date the Executive will not (either on their own behalf or for or with any
 other person, whether directly or indirectly) canvass, solicit or attempt to
 entice away from the Employer or (as the case may be) any other Group Company
 any business of any Relevant Customer or any Prospective Customer in respect
 of the Relevant Services; and

 
	
  

 	
  

 	
  

 
	
  

 	
 11.1.5

 	
 throughout
 the Employment and during the period of 12 months commencing on the Relevant
 Date the Executive will not intentionally or recklessly interfere or
 endeavour to interfere with the continuance of supplies to the Employer
 and/or any other Group Company or the terms relating to those supplies by any
 Relevant Supplier. 

 

	
  

 	
  

 	
  

 
	
 11.2

 	
 In
 the event that the Employer gives notice to terminate the Executive’s
 employment and the Executive works 6 months or more of the Executive’s notice
 period, the Employer will not require the Executive to comply with Clause
 11.1.1 above following the termination of the Executive’s employment.

 
	
  

 	
  

 	
  

 
	
 11.3

 	
 Following
 the Termination Date, the Executive will not hold out as being in any way
 connected with the businesses of the Employer or of any other Group Company
 (except to the extent agreed by such a company).

 
	
  

 	
  

 	
  

 
	
 11.4

 	
 Any
 benefit given or deemed to be given by the Executive to any Group Company
 under the terms of Clause 11 is received and held on trust by the Employer
 for the relevant Group Company. The Executive will enter into appropriate
 (but not wider) restrictive covenants directly with other Group Companies if
 asked to do so by the Employer. 

 
	
  

 	
  

 	
  

 
	
 11.5

 	
 The
 Executive acknowledges that the provisions of this Clause are fair,
 reasonable and necessary in order to protect the Confidential Information and
 business connections of the Employer, and any other Group Company, to which
 the Executive has access as a result of the Employment

 
	
  

 	
  

 	
  

 
	
 11.6

 	
 Each
 of the obligations in this Clause 11 is an entirely separate and independent
 restriction on the Executive. If any part is found to be invalid or
 unenforceable the remainder will remain valid and enforceable.

 
	
  

 	
  

 	
  

 
	
 11.7

 	
 The
 Executive agrees to draw the provisions of this Clause 11 to the attention of
 any third party who may at any time before or after the termination of the
 Employment offer to employ or engage the Executive in any capacity and for
 whom or with whom the Executive intends to work during the 12 months
 following the Termination Date. 

 
	
  

 	
  

 	
  

 
	
 12

 	
 Termination

 
	
  

 	
  

 	
  

 
	
  

 	
 Summary Dismissal

 
	
  

 	
  

 	
  

 
	
 12.1

 	
 The
 Employer may terminate the Employment at any time forthwith by written notice
 to the Executive (and without any requirement of prior notice) if the
 Executive shall:-

 
	
  

 	
  

 	
  

 
	
  

 	
 12.1.1

 	
 commit
 any serious breach of the obligations under this Agreement;

 
	
  

 	
  

 	
  

 
	
  

 	
 12.1.2

 	
 be
 guilty of any material and serious misconduct or material and serious neglect
 in the discharge of the duties; 

 
	
  

 	
  

 	
  

 
	
  

 	
 12.1.3

 	
 have
 a bankruptcy order made against them or make any arrangement or composition
 with the Executive’s creditors or have an interim order made against them
 pursuant to the Insolvency Act 1986 (or any re-enactment or amendment thereof
 for the time being in force);

 
	
  

 	
  

 	
  

 
	
  

 	
 12.1.4

 	
 be
 convicted of any criminal offence (except any road traffic offence for which
 a non-custodial penalty is imposed) which in the reasonable opinion of the
 Employer materially affects the Executive’s position as an employee under
 this Agreement;

 
	
  

 	
  

 	
  

 
	
  

 	
 12.1.5

 	
 bring
 the name or reputation of the Executive or Employer, or any Group Company
 into material disrepute;

 
	
  

 	
  

 	
  

 
	
  

 	
 12.1.6

 	
 be
 or become prohibited by law from becoming or remaining a director; 

 
	
  

 	
  

 	
  

 
	
  

 	
 12.1.7

 	
 be
 disqualified or disbarred from membership of, or be found to have committed
 any serious disciplinary offence by, or be found not to be a fit and proper
 person by, any professional or regulatory body governing the conduct of the
 Executive or the business of any Group Company; 

 
	
  

 	
  

 	
  

 
	
  

 	
 12.1.8

 	
 cease
 to have FSMA Approval; 

 
	
  

 	
  

 	
  

 
	
  

 	
 12.1.9

 	
 cease
 to be entitled to work in the UK.

 
	
  

 	
  

 	
  

 
	
 12.2

 	
 Where
 the Executive has been summarily dismissed in accordance with Clause 12.1 or
 where the Executive terminates the Employment in breach of the notice
 provisions in Clause 1.3.2, the calculation of any payment in lieu of
 outstanding holiday entitlement owed by the Employer to the Executive shall
 be calculated as being £1. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Absence Dismissal

 
	
  

 	
  

 	
  

 
	
 12.3

 	
 If
 the Executive (owing to sickness, injury or otherwise) does not perform the
 duties under this Agreement for a period of at least 26 weeks (or at least 26
 weeks in aggregate in any period of twelve months) the Employer shall be
 entitled to terminate the Employment by giving to the Executive not less than
 6 months’ notice at any time while the Executive does not perform the duties
 and the Executive shall have no claim for compensation or otherwise against
 the Employer by reason of such termination. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Reconstructions or amalgamation

 
	
  

 	
  

 	
  

 
	
 12.4

 	
 If
 employment of the Executive under this Agreement is terminated by reason of
 the liquidation of the Employer for the purpose of reconstruction or
 amalgamation and the Executive is offered employment with any concern or
 undertaking resulting from the reconstruction or amalgamation on terms and
 conditions materially no less favourable overall than the terms of this
 Agreement (and any written amendment hereto), then the Executive shall have
 no claim against the Employer in respect of the termination of the Employment
 (whether or not the notice required by Clause 1.3 shall have been given).

 
	
  

 	
  

 	
  

 
	
  

 	
 Payment in lieu of notice

 
	
  

 	
  

 	
  

 
	
 12.5

 	
 The
 Employer may at any time in its absolute discretion, elect to terminate the
 Employment and this Agreement by paying to the Executive a payment in lieu of
 the notice period referred to in Clause 1.3 or any part thereof. The amount
 of the payment in lieu shall be:

 
	
  

 	
  

 	
  

 
	
  

 	
 12.5.1

 	
 in
 the case of notice given by the Executive under Clause 1.3.2 an amount
 equivalent to the Basic Salary under Clause 3.1 for such period or part
 period;

 
	
  

 	
  

 	
  

 
	
  

 	
 12.5.2

 	
 in
 the case of notice given or to be given by the Employer under Clause 1.3.1 an
 amount equivalent to the Basic Salary under Clause 3.1 and the pension
 allowance under Clause 4.1 for such period or part period which for the
 avoidance of doubt shall take into account the fact that notice may not expire
 before the second anniversary of the Commencement Date

 
	
  

 	
  

 	
  

 
	
  

 	
 Such
 a payment shall be subject to such deductions for tax and employee national
 insurance as are required by law and to any other authorised deductions.

 

	
  

 	
  

 	
  

 
	
 12.6

 	
 For
 the avoidance of doubt:-

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 If
 the Employer terminates the Executive’s employment other than in accordance
 with its rights under this Agreement any entitlement to damages for breach of
 contract will be assessed on normal common law principles (including the
 Executive’s obligation to mitigate any losses); and

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 The
 right of the Employer to make a payment in lieu of notice does not give rise
 to any right for the Executive to receive such a payment.

 
	
  

 	
  

 	
  

 
	
 12.7

 	
 The
 Employer will pay any sums due under Clause 12.5 in monthly instalments over
 the period until the date on which notice, if it had been served in
 accordance with Clause 1.3, would have expired (the “Relevant Period”). The Executive is
 obliged to seek alternative income over the Relevant Period and to disclose
 the gross amount of any such income to the Employer as evidenced by payslips
 and/ or invoices in a timely manner. The Employer’s monthly instalment
 payments pursuant to this Clause 12.7 shall then be reduced by the gross
 amount of such alternative income earned in respect of any part of the
 Relevant Period. Payments shall be subject to such deductions for tax and
 employee national insurance contributions as are required by law and to any
 other authorised deductions. 

 
	
  

 	
  

 	
  

 
	
 13

 	
 Return of Property

 
	
  

 	
  

 	
  

 
	
 13.1

 	
 The
 Executive will immediately upon the termination of the Employment return to
 the Employer at such place as the Employer may reasonably specify

 
	
  

 	
  

 
	
  

 	
 13.1.1

 	
 all
 documents and other materials (whether originals or copies) made or compiled
 by or delivered to the Executive during the Employment and concerning any
 Group Company (but excluding documents and materials which belong solely to
 the Executive), including any Confidential Information and will not retain
 any copies of such documents or materials; and

 
	
  

 	
  

 	
  

 
	
  

 	
 13.1.2

 	
 all
 other property belonging or relating to any Group Company, in good condition
 (allowing for fair wear and tear).

 
	
  

 	
  

 	
  

 
	
 14

 	
 Directorships

 
	
  

 	
  

 	
  

 
	
 14.1

 	
 The
 Executive’s office in any Group Company is subject to the Articles of
 Association of the relevant company (as amended from time to time). If the
 provisions of this Agreement conflict with the provisions of the Articles of
 Association, the Articles of Association will prevail.

 
	
  

 	
  

 	
  

 
	
 14.2

 	
 The
 Executive must resign from any office held in any Group Company if asked at
 any time to do so by the Employer (but excluding any office necessary to
 enable him to perform his appointment). 

 
	
  

 	
  

 	
  

 
	
 14.3

 	
 By
 entering into this Agreement, the Executive irrevocably appoints the Employer
 as attorney to act in the Executive’s name and on the Executive’s behalf to
 execute any document or do anything in the Executive’s name necessary to
 effect the Executive’s resignation in accordance with Clause 14.2. If there
 is any doubt as to whether such a document (or other thing) has been carried
 out within the authority conferred by this Clause 14.3, a certificate in
 writing (signed by any director or the secretary of the Employer) will be
 sufficient to prove that the act or thing falls within that authority.

 
	
  

 	
  

 	
  

 
	
 14.4

 	
 The
 termination of any directorship or other office (other than any directorship
 or office necessary to enable the Executive to perform his appointment) held
 by the Executive will not terminate the Executive’s employment or amount to a
 breach of terms of this Agreement by the Employer.

 
	
  

 	
  

 	
  

 
	
 14.5

 	
 During
 the Employment the Executive will not do anything which could cause the
 Executive to be disqualified from continuing to act as a director of any
 Group Company. 

 
	
  

 	
  

 	
  

 
	
 14.6

 	
 The
 Executive must not resign office as a director of any Group Company without
 the agreement of the Employer, or unless he reasonably considers his position
 and liability as an officer of the relevant company to be materially
 prejudiced by the acts or omissions of its board or the Board.

 
	
  

 	
  

 	
  

 
	
 15

 	
 Disciplinary and Grievance Procedures

 
	
  

 	
  

 	
  

 
	
 15.1

 	
 Any
 disciplinary matter affecting the Executive will be dealt with by the
 Chairman.

 
	
  

 	
  

 	
  

 
	
 15.2

 	
 If
 the Executive has any grievance relating to their employment such grievance
 should be made in writing to the Chairman. If the Executive is dissatisfied
 with the Chairman’s treatment of the grievance, the matter may be referred to
 another non-executive Director.

 
	
  

 	
  

 	
  

 
	
 16

 	
 Miscellaneous Conditions of Employment

 
	
  

 	
  

 	
  

 
	
 16.1

 	
 The
 Staff Manual (People Policies and Practice)/HR policies and practice contains
 general information regarding policies and procedures currently in place,
 within the Group, which may be altered from time to time at the sole
 discretion of the Employer. These do not form part of this Agreement except
 for the following provisions:-

 
	
  

 	
  

 	
  

 
	
  

 	
 16.1.1

 	
 Group
 Security Policy;

 
	
  

 	
  

 	
  

 
	
  

 	
 16.1.2

 	
 Personal
 Account Dealing;

 
	
  

 	
  

 	
  

 
	
  

 	
 16.1.3

 	
 Sick
 Pay;

 
	
  

 	
  

 	
  

 
	
  

 	
 16.1.4

 	
 Sickness
 absence reporting;

 
	
  

 	
  

 	
  

 
	
  

 	
 16.1.5

 	
 Smoking
 policy.

 
	
  

 	
  

 	
  

 
	
  

 	
 If
 there is any conflict between this Agreement and such provisions, then this
 Agreement shall prevail.

 
	
  

 	
  

 	
  

 
	
 16.2

 	
 There
 are no collective agreements affecting the employment of the Executive.

 
	
  

 	
  

 	
  

 
	
 17

 	
 Contracts (Rights of Third Parties) Act 1999 and Data
 Protection Act 1998

 
	
  

 	
  

 	
  

 
	
 17.1

 	
 No
 person other than the parties to this Agreement or any Group Company shall
 have any right to enforce any term of this Agreement under The Contracts
 (Rights of Third Parties) Act 1999.

 

	
  

 	
  

 	
  

 
	
 17.2

 	
 For
 the purposes of the Data Protection Act 1998 (the “Act”) the Executive
 consents to the holding, processing and disclosure of personal data
 (including sensitive data within the meaning of the Act) provided by the
 Executive to the Employer (provided such holding, processing and disclosure
 is undertaken in accordance with the terms of the Act and with the Employer’s
 data protection policy issued from time to time) for all purposes relating to
 the performance of this Agreement including, but not limited to:

 
	
  

 	
  

 	
  

 
	
  

 	
 17.2.1

 	
 administering
 and maintaining personnel records;

 
	
  

 	
  

 	
  

 
	
  

 	
 17.2.2

 	
 paying
 and reviewing salary and other remuneration and benefits;

 
	
  

 	
  

 	
  

 
	
  

 	
 17.2.3

 	
 providing
 and administering benefits (including if relevant, pension, life assurance,
 permanent health insurance and medical insurance);

 
	
  

 	
  

 	
  

 
	
  

 	
 17.2.4

 	
 undertaking
 performance appraisals and reviews;

 
	
  

 	
  

 	
  

 
	
  

 	
 17.2.5

 	
 maintaining
 sickness and other absence records;

 
	
  

 	
  

 	
  

 
	
  

 	
 17.2.6

 	
 taking
 decisions as to the Executive’s fitness for work;

 
	
  

 	
  

 	
  

 
	
  

 	
 17.2.7

 	
 providing
 references and information to future employers, and if necessary,
 governmental and quasi-governmental bodies for social security and other
 purposes, Her Majesty’s Revenue and Customs and the Contributions Agency;

 
	
  

 	
  

 	
  

 
	
  

 	
 17.2.8

 	
 providing
 information to future purchasers of the Employer or of the business in which
 the Executive works; and

 
	
  

 	
  

 	
  

 
	
  

 	
 17.2.9

 	
 transferring
 information concerning the Executive to a country or territory outside the
 EEA.

 
	
  

 	
  

 	
  

 
	
  

 	
 The
 Executive acknowledges that during the employment the Executive will have
 access to and process, or authorise the processing of personal data and
 sensitive personal data relating to employees, customers and other
 individuals held and controlled by the Employer. The Executive agrees to
 comply with the terms of the Act in relation to such data and to abide by the
 Employer’s data protection policy issued from time to time.

 
	
  

 	
  

 	
  

 
	
 18

 	
 Other Agreements

 
	
  

 	
  

 	
  

 
	
 18.1

 	
 This
 Agreement shall be in substitution for all existing contracts of service or
 consultancy between the Employer or any Group Company and the Executive,
 which (without prejudice to any accrued rights) shall be treated as cancelled
 with effect from the Commencement Date.

 
	
  

 	
  

 	
  

 
	
 18.2

 	
 This
 Agreement comprises the whole agreement between the Employer and the
 Executive relating to the Employment, to the exclusion of all other
 warranties, representations made in good faith, undertakings and collateral
 contracts save that it is agreed, for the avoidance of doubt, that any
 written amendments to this Agreement after the date hereof, and any rights
 and entitlements arising pursuant to any other written agreement entered into
 by the Employer and the Executive in relation to the Employment on or after
 the date of this Agreement shall have full force and effect.

 
	
  

 	
  

 	
  

 
	
 19

 	
 Notices

 
	
  

 	
  

 	
  

 
	
  

 	
 Any
 notice under this Agreement shall be in writing and shall either be given
 personally or be sent by prepaid first class post by the Employer to the
 Executive at their home address notified to the Employer pursuant to Clause
 2.1.9 or at any other last known UK residential address, or by the Executive
 to the Employer at its address stated above or its other last known address.
 Any notice sent by the Employer by post shall be deemed to have been received
 two business days after the date of posting.

 
	
  

 	
  

 	
  

 
	
 20

 	
 Interpretation

 
	
  

 	
  

 	
  

 
	
  

 	
 General

 
	
  

 	
  

 	
  

 
	
 20.1

 	
 In
 this Agreement:

 
	
  

 	
  

 	
  

 
	
  

 	
 20.1.1

 	
 where
 the context permits, references to the singular shall include references to
 the plural and vice versa;

 
	
  

 	
  

 	
  

 
	
  

 	
 20.1.2

 	
 the
 Employer’s Staff Manual shall mean the current manual of the Employer
 entitled “People Policies and Practice”/HR Policies and Practice, as may be
 amended or replaced by the Employer from time to time at its sole and
 absolute discretion. Upon any amendment or replacement, the references to the
 sections of the now current Employer’s Staff Manual/HR Policies and Practice
 in Clause 16.1 shall be construed so as to be references to the provisions of
 the amended or replaced Employer’s Staff Manual dealing with the same subject
 matter;

 
	
  

 	
  

 	
  

 
	
  

 	
 20.1.3

 	
 references
 to a Clause mean a Clause in this Agreement;

 
	
  

 	
  

 	
  

 
	
  

 	
 20.1.4

 	
 Clause
 headings are inserted for convenience only and shall not affect the
 construction of this Agreement;

 
	
  

 	
  

 	
  

 
	
  

 	
 20.1.5

 	
 any
 reference to a statute, statutory provision or subordinate legislation (“legislation”) shall be construed as
 referring to such legislation as amended and in force from time to time and
 to any legislation which re-enacts or consolidates or modifies such
 legislation from time to time.

 
	
  

 	
  

 	
  

 
	
  

 	
 Definitions

 
	
  

 	
  

 	
  

 
	
 20.2

 	
 In
 this Agreement unless the context otherwise requires:

 
	
  

 	
  

 	
  

 
	
  

 	
 “Board” means board of directors of Lloyds
 Banking Group plc or any duly authorised committee of the same;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Chairman” means the Chairman of the
 Lloyds Banking Group plc

 
	
  

 	
  

 	
  

 
	
  

 	
 “Commencement Date” has the meaning given
 in Clause 1.3;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Confidential Information” has the meaning
 given in Clause 8.1;

 

	
  

 	
  

 	
  

 
	
  

 	
 “Dismissal for Cause” shall include
 termination of the Executive’s employment:-

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 on
 any grounds listed in Clause 12.1; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 for
 any reason relating to the Executive’s performance or conduct where the Board
 in good faith considers that the Executive has failed or is failing to
 perform and/or conduct himself to the standard expected by the Board; or in
 any other circumstances where the Board in good faith considers that it is in
 the best interests of Lloyds Banking Group plc that the Executive’s
 employment be terminated;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Employment” has the meaning given in
 Clause 1.1;

 
	
  

 	
  

 	
  

 
	
  

 	
 “FSA” means the Financial Services
 Authority and/or any successor regulatory body or bodies relevant to the
 Employer’s business from time to time; 

 
	
  

 	
  

 	
  

 
	
  

 	
 “FSMA 2000” means the Financial Services
 and Markets Act 2000, as amended and in force from time to time, and/or any
 legislation which re-enacts or consolidates or modifies such legislation from
 time to time or otherwise replaces such legislation in respect of the FSA;

 
	
  

 	
  

 	
  

 
	
  

 	
 “FSMA Approval” has the meaning given in
 Clause 1.2;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Garden Leave Period” has the meaning
 given in Clause 10.1;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Group Company” means any of Lloyds
 Banking Group plc and its subsidiaries (as such terms are defined in the
 Companies Act 2006), and “Group”
 means all of them;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Intellectual Property Rights” means all
 intellectual property rights, and interests in or to intellectual property
 rights, which may subsist in any part of the world, including where such
 rights are or may be obtained or enhanced by registration, any registrations,
 applications for registrations and rights to apply for registration of such
 intellectual property rights; 

 
	
  

 	
  

 	
  

 
	
  

 	
 “Prospective Customer” means any person,
 firm or company which has been engaged in negotiations, with which the
 Executive has been personally involved, with the Employer or any other Group
 Company with a view to purchasing products or services from the Employer or
 any other Group Company during the period of 6 months prior to the Relevant Date;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Reference Salary” means an annual amount
 of £1,220,000 or such higher salary as may be notified to the Executive from
 time to time. The Reference Salary shall be reviewed (but without any
 obligation to increase), annually from 1 January 2011; 

 
	
  

 	
  

 	
  

 
	
  

 	
 “Relevant Customer” means any person, firm
 or company which at any time during the 12 months prior to the Relevant Date
 was a customer of the Employer or any other Group Company, with whom or which
 the Executive dealt other than in a de minimis way or for whom or which the
 Executive was responsible in a supervisory or managerial capacity on behalf
 of the Employer or any other Group Company at any time during the said
 period;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Relevant Date” means (i) in the case of
 Clause 11.1.1 the earlier of the date the Executive gives notice to terminate
 his employment, the Termination Date or the date on which the Executive
 commences any Garden Leave Period; and (ii) in the case of Clauses 11.1.2 to
 11.1.5 the Termination Date, or if earlier, the date on which the Executive
 commences any Garden Leave Period;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Relevant Services” products and services
 competitive with those supplied by the Employer or any other Group Company at
 any time during the 12 months prior to the Relevant Date in the supply of which
 the Executive was involved or concerned other than in a de minimis way at any
 time during the said period;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Relevant Supplier” means any person, firm
 or company which at any time during the 12 months prior to the Relevant Date
 was a supplier of any goods or services (other than utilities and goods or
 services supplied for administrative purposes) to the Employer or any Group
 Company and with whom or which the Executive had personal dealings during the
 Employment other than in a de minimis way;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Restricted Employee” means any person who
 is at the Relevant Date or was at any time during the period of 12 months
 prior to the Relevant Date employed or engaged as a consultant in the Group
 in an executive or senior managerial capacity or who reported directly to the
 Executive and with whom the Executive has had dealings other than in a de
 minimis way during the course of the Employment;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Santander” means Banco Santander, S.A.;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Santander shares” means shares of Capital
 Stock in Santander, par value Euro 0.50 each;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Termination Date” means the date on which
 the Employment terminates; and

 
	
  

 	
  

 	
  

 
	
  

 	
 “Work(s)” means any idea, method,
 discovery, invention, technical or commercial information, know-how, computer
 program, semiconductor chip layout, database, drawing, literary work,
 product, packaging, design, marketing concept, trade or service mark, logo,
 domain name and all similar works (whether registrable or not and whether
 copyright works or not) made, created, or developed by the Executive, either
 alone or with others, during the term of the Employment (whether in or
 outside the course of the Executive’s duties), which relates to, or is
 capable of being used in, the business of the Employer or any Group Company.

 

	
  

 	
  

 
	
 21

 	
 Governing Law and Jurisdiction

 
	
  

 	
  

 
	
  

 	
 This
 Agreement is governed by and will be interpreted in accordance with the law
 of England and Wales. Each of the parties submits to the exclusive
 jurisdiction of the English courts as regards any claim or matter arising
 under this Agreement.

 

EXECUTED by the Executive and a representative of the
Employer duly and fully authorized by the Board of the Employer to enter into
this Agreement on the first date mentioned above.

	
  

 	
  

 	 
	
 EXECUTED
 as a DEED by the

 	
 

 	 
	
 Executive

 	/s/ António Horta-Osório

	
 António
 Horta-Osório 

 	 
	
 in
 the presence of:

 	3/11/2010

Witness’s signature       /s/ Elizabeth Jackson

	Name
	ELIZABETH JACKSON

	 	 
	Address
	LONDON

	 	 
	Occupation
	HR DIRECTOR

	 	 

	
  

 	
  

 	 
	
 SIGNED
 on behalf of the Employer:

 	
 

 	 
	
  

 	/s/ W F W Bischoff

	
 in
 the presence of:

 	 

/s/ Elizabeth Jackson

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00298-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00298-of-00352.parquet"}]]