Document:

Exhibit 10.6

 

Effective April 1, 2018

 

SANSAL WELLNESS HOLDINGS, INC.

 

Code of Business Conduct and Ethics

for Directors and Employees

 

Introduction

 

This is the Code of
Business Conduct and Ethics (the “Code”). for directors and employees of SanSal Wellness Holdings, Inc, its
subsidiaries and affiliates (“SanSal Wellness”) This Code sets out ten important rules that we, as members of
the board of directors of SanSal Wellness (the “Board”), and as employees have chosen to guide us during our
service to SanSal Wellness. The Board’s Committee (the “Committee”) administers this Code. Annually, each
director and senior management employee acknowledges in writing the receipt, review, and understanding of this Code. Every employee
is expected to abide by the spirit and intent of the Code. No code can anticipate every situation that may arise nor can it replace
the thoughtful behavior of an ethical employee or director. Rather, this Code provides guidance for handling situations as they
arise.

 

We raise any questions
or concerns about this Code or any related situation to the Chair of the Audit Committee, who may consult with the Committee, SanSal
Wellness’ Corporate Secretary, Chief Compliance Officer or other counsel.

 

Objective—Earning and Maintaining
Trust

 

This Code is part of
SanSal Wellness’ commitment to integrity. This Code focuses on areas of ethical risk, provides guidance to help us recognize
and deal with ethical issues, provides mechanisms to report unethical conduct, and helps foster a culture of honesty and accountability.
The ten rules in this Code guide our handling of ethical matters and describe the values that guide
us in our decisions, particularly the most essential value – trust. Trust means that others can rely on us to speak truthfully,
to honor our commitments, and to treat others fairly. SanSal Wellness’ reputation for integrity is one of our most valuable
assets. SanSal Wellness must earn and keep the trust of investors, consumers, customers, business partners, employees, and the
general public. Maintaining and improving this trust requires that we follow this Code’s principles and rules. 

 

The Rules

 

Rule #1. Give SanSal Wellness our complete business loyalty.

 

While we serve the
Company, SanSal Wellness shareholders expect us to make business decisions without the influence of any improper personal interest
or gain. Therefore, we avoid situations in which our personal interests interfere, or appear to interfere, in any way with SanSal
Wellness’ interests. Conflicts arise when our personal interests make it difficult to perform our responsibilities objectively
or effectively. Conflicts of interest also may arise when we, or a family member, receive improper personal benefits because of
our positions as employees or members of the Board.

 

Situations involving
a conflict of interest are not always obvious or easy to resolve. Therefore, we bring any questions concerning potential conflicts
to the Chair of the Committee. We disclose immediately to the Chair of the Committee any situation that could involve an actual
or potential conflict of interest. Family members for purposes of this Code include a spouse, parents, children, siblings, fathers
and mothers-in-law, sons and daughters-in-law, brothers and sisters-in-law. and anyone who shares the employee’s or director’s
home.

 

The Chair of the Committee
may consult with the Committee as a whole, the Corporate Secretary, General Counsel, Chief Compliance Officer or other counsel
regarding any potential conflicts.

 

     

     

    

 

Examples of common
conflicts that we avoid or disclose to the Chair of the Audit Committee include the following:

 

● Personal benefits and
gifts. We do not receive a personal benefit from any person or firm seeking or currently doing business with SanSal Wellness.
Personal benefits include consultant fees, exercisable stock options or other remuneration, non-cash gifts, meals or entertainment
(other than those of nominal value and for ordinary business purposes), or any other benefit that a reasonable person may conclude
could affect our objectivity. We never accept cash or cash equivalents, bribes or kickbacks.

 

● Competition. We do not compete with
SanSal Wellness.

 

● Personal use of SanSal
Wellness assets. We do not use SanSal Wellness assets, labor, resources, or information except for legitimate SanSal Wellness
business purposes.

 

● Loans and Guarantees.
We do not accept loans or guarantees from SanSal Wellness.

 

● Compensation from non-SanSal
Wellness sources. We do not accept compensation (in any form) for services we perform for SanSal Wellness from any source other
than SanSal Wellness.

 

● Conflicts arising from
a role at other organizations. We sometimes serve as a director, officer or employee of, serve as an advisor or consultant
to, are a significant investor in, or have a similar role at another organization. If we encounter a situation where our current
role in that other organization could have the potential to conflict, or appear to conflict with SanSal Wellness interests, we
immediately:

 

		(i)	inform the Chair of the Audit Committee

 

		(ii)	take appropriate action, including recusing ourselves from participation in the Board’s or Committee’s discussion
and consideration of any matter related to or giving rise to the potential conflict;

 

		(iii)	take all actions requested by the Chair of the Audit
Committee or the Chair’s designee, and

 

		(iv)	take any other action which is necessary or appropriate
under the circumstances.

 

Prior to accepting
a new role at another organization, we consider whether that role could have the potential to conflict, or appear to conflict with
SanSal Wellness interests and follow these same steps.

 

Our family members’
activities also may create a situation involving a conflict of interest and we disclose any family member’s relationship
that involves an actual or potential conflict of interest with SanSal Wellness.

 

Rule #2. Never trade on inside information. 

 

We do not trade securities
while we have material non-public information. Material information includes anything likely to influence a potential investor’s
decision to trade in securities including, but not limited to, information about mergers, earnings, projects, and changes in management.
In addition to SanSal Wellness securities, this restriction applies to the trading of the securities of SanSal Wellness customers,
suppliers, or other business partners if we have material non-public information about them. Further, if we cannot make trades
because we possess material non-public information, neither can our family members.

 

     

     

    

 

Rule #3. Honor Confidentiality. 

 

We maintain the confidentiality
of all information entrusted to us during our service to SanSal Wellness. We share that information only when SanSal Wellness’
Corporate Secretary or General Counsel advises that disclosure is authorized or legally mandated. Confidential information includes
all non-public information related to SanSal Wellness. We also exercise due care in handling SanSal Wellness proprietary and confidential
information. We avoid discussing this information in public areas or with family members. Our obligation to preserve SanSal Wellness
confidential information is ongoing, even after our service on the Board concludes.

 

Rule #4. Never Misappropriate Corporate Opportunities. Ensure

Proper Use of Corporate Assets. 

 

We owe a duty to SanSal
Wellness to advance its legitimate interests when the opportunity to do so arises. We do not use opportunities that we discover
using SanSal Wellness corporate property, information, or position for our personal benefit unless SanSal Wellness’ disinterested
directors determine that SanSal Wellness will not pursue such opportunity. We use corporate property, information, or position
only for legitimate business purposes; never for personal gain. We protect SanSal Wellness assets and ensure their efficient use.

 

Rule #5. We Provide Accurate Information to SanSal Wellness

 

SanSal Wellness relies
on information that we provide when it prepares disclosure documents and regulatory filings and for other purposes. We are truthful,
forthright, and accurate when preparing director questionnaires, stock information forms, expense reimbursement forms, and other
documents for SanSal Wellness use.

 

Rule #6. Comply with Laws, Rules and Regulations. 

 

We do not instruct
others to commit illegal or unethical acts for any reason when they are conducting business for SanSal Wellness.

 

Each of us is an SanSal
Wellness representative and we deal fairly with others (including SanSal Wellness customers, suppliers, competitors, and employees)
when conducting SanSal Wellness business. We do not take unfair advantage of anyone through manipulation, concealment, abuse of
privileged information, misrepresentation of material facts, or any other unfair dealing practice.

 

Rule #7. Honor SanSal Wellness Values. 

 

No set of rules could
answer every question that we face as employees. When these rules do not address a situation, we refer to SanSal Wellness values
for guidance. These are:

 

● We inspire trust.

 

● We act like owners.

 

● We keep it simple.

 

● We are open and inclusive.

 

● We tell it like it is.

 

● We lead from the head and
the heart.

 

● We discuss. We decide. We
deliver.

 

     

     

    

 

As employees and directors
of SanSal Wellness, we champion these values and encourage all SanSal Wellness employees and directors to follow them. We ask questions
when we are not sure what to do. Fortunately, we have many places to turn for help, among them, the Corporate Secretary, the General
Counsel, the Chief Compliance Officer, other counsel, and outside advisors. We never hesitate to consult them.

 

Rule #8. Report Any Concerns. 

 

If we suspect a violation
of this Code, we promptly communicate that concern to the Chair of the Audit Committee. We communicate any concerns about the Chair
of the Audit Committee to the Chairman of the Board.

 

Rule #9. Address Reports of Concerns about Director Behavior.

 

If an employee or director
violates this Code, we all suffer consequences, especially SanSal Wellness Ignoring violations leads to greater problems and damages
trust. The Committee or its designee promptly addresses reports of concerns about employee or director behavior and carefully looks
into the facts and circumstances surrounding any report. The Audit Committee or its designee conducts all investigations fairly
and considers all relevant information. The Audit Committee actively addresses any violations of this Code. Upon advice of legal
counsel, SanSal Wellness may report violations of the Code that involve illegal behavior to the appropriate authorities.

 

Rule #10. We Encourage Others to Report Concerns and We Do
Not Retaliate. 

 

As employees and directors,
we support management’s efforts to promote honest behavior and an ethical environment at SanSal Wellness. If anyone suspects
that there has been a violation of the law, this Code, or any SanSal Wellness policy, we encourage them to raise that concern so
that SanSal Wellness can act quickly. These concerns can be raised immediately and anonymously by calling the SanSal Wellness Integrity
HelpLine.

 

SanSal Wellness. does
not tolerate retaliation against anyone for raising a concern in good faith. Raising good faith concerns is vital to SanSal Wellness’
success.

 

Waivers and Amendments 

 

In the unlikely event
that a waiver of this Code would be in SanSal Wellness Holdings’ best interests, only the Board may grant such waiver.

 

Only the Board may
amend this Code. SanSal Wellness promptly discloses to its shareholders (by posting on www.sansalwellness.com or making
other required public disclosure) any waiver or amendment to this Code.

 

Alexander M. Salgado

Chief Executive OfficerExhibit 10.1

 

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) is made as of January 1, 2018, by and between Global GP LLC, a Delaware limited liability company (the “Company”), and Andrew P. Slifka (the “Executive”).

 

WHEREAS, the Company employs the Executive as an Executive Vice President of the Company and the President of the Gasoline Distribution and Station Operations (“GDSO”) Division of Global Partners LP, a Delaware limited partnership (the “Partnership”), of which the Company is the general partner; and

 

WHEREAS, the Company and the Executive have negotiated mutually agreeable terms for the Executive’s continued employment by the Company, including without limitation establishing a one (1) year term of employment, and agreeing upon certain benefits of such employment.

 

NOW, THEREFORE, for and in consideration of the mutual promises, covenants and obligations contained herein, the sufficiency of which the Company and the Executive each acknowledges, the Company and the Executive hereby agree as follows:

 

1.                                      Employment and Term of Employment.  Subject to the terms of this Agreement, the employment term hereunder will commence on January 1, 2018 (the “Effective Date”) and continue through December 31, 2018. The Company and the Executive agree to begin discussions concerning the renewal of this Agreement in the third calendar quarter of 2018, with the objective of reaching a final agreement by the end of December 2018 other than with respect to a replacement Exhibit A (Short-Term Annual Cash Incentive Plan).  The replacement Exhibit A, which is a condition to the parties’ agreement to a renewal term, shall be proposed by the Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) and acceptable to the Executive. Absent the receipt by either party from the other party of a notice not to renew the Agreement as provided in Section 1(b) below, the initial term of this Agreement shall be automatically extended from December 31, 2018 through April 15, 2019 for the purpose of completing a mutually agreeable replacement Exhibit A for the 2019 calendar year.  If the parties do not reach agreement with respect to a replacement Exhibit A for the 2019 calendar year by 11:59 p.m. on April 15, 2019, this Agreement shall automatically terminate, which termination shall be treated as a nonrenewal (notwithstanding the absence of any notice of nonrenewal or Notice of Termination (as defined in Section 7(g) below)) and the Executive shall be entitled to receive the compensation set forth in Section 7(e) below.

 

(b)                                 Either the Company or the Executive may provide the other with prior written notice of its or his desire not to renew the Agreement, delivered in accordance with Section 20 (“Notice”) at least ninety (90) days in advance of January 1, 2019, in which case the Agreement shall terminate at 11:59 p.m. on December 31, 2018 and the Executive shall be entitled to receive the compensation set forth in Section 7(e) below.

 

 

(c)                                  Notwithstanding anything to the contrary in this Section 1, either the Company or the Executive may terminate the Executive’s employment with the Company at any time, subject to the terms and conditions of Section 7 hereof.

 

(d)                                 The employment period as described in this Section 1 (as it may be extended and/or renewed) is referred to herein as the “Term.”

 

2.                                      Position and Duties.  During the Term, the Company shall employ the Executive as an Executive Vice President of the Company and the Executive shall serve as the President of the GDSO Division of the Partnership, or in such other positions as the parties mutually agree.   The Executive shall have such powers and duties and responsibilities as are customary to such positions and as are assigned to the Executive by the President and Chief Executive Officer of the Company in connection with the Executive’s management and supervision of the GDSO Division and related operations of the Company and of the Partnership.  The Executive’s employment shall also be subject to the policies maintained and established by the Company that are of general applicability to the Company’s employees as such policies may be amended from time to time.

 

3.                                      Other Interests. During the Term, the Executive shall devote his full time, attention, energies and business efforts during normal business hours to his duties and responsibilities as an Executive Vice President of the Company, including serving as the President of the GDSO Division of the Partnership. The Partnership and its subsidiaries are sometimes hereinafter referred to collectively as the “Partnership Group”.  During the Term, except as otherwise restricted by the non-competition covenants set forth in Annex I attached hereto and incorporated herein by reference, the parties recognize and agree that the Executive may engage in other business activities that do not conflict with the business and affairs of the Company or of the Partnership or interfere with the Executive’s performance of his duties and responsibilities hereunder.  Additionally, the non-competition covenants set forth in Annex I shall apply to the Executive from the Date of Termination and shall continue until the first anniversary of the Date of Termination (as defined in Section 7(h) hereof).  The Executive, for himself and his Affiliates, hereby agrees and acknowledges that the non-competition restrictions and covenants set forth in Annex I are fair and reasonable provisions for the protection of the Company’s and the Partnership Group’s legitimate business interests including, without limitation, the Company’s and the Partnership Group’s confidential information, trade secrets, goodwill and the business contacts which the Executive will establish and develop in the course of performing his duties under this Agreement.

 

4.                                      Duty of Loyalty.

 

(a) The Executive acknowledges and agrees that the Executive owes a fiduciary duty of loyalty to act in the best interests of the Company and of the Partnership Group. In keeping with such duty, the Executive shall, during the Term, make full disclosure to the Company of all business opportunities pertaining to the business of the Company or of the Partnership or any of its subsidiaries and, during the Term, shall not appropriate for the Executive’s own benefit business opportunities concerning the business of the Company, the Partnership or any of its subsidiaries, except as otherwise permitted by the non-competition 

 

 

covenants set forth in Annex I or as consented to in writing by the Board of Directors of the Company.

 

(b) The Company shall indemnify the Executive to the extent permitted by the Company’s third amended and restated limited liability company agreement, as amended and/or restated from time to time, and by applicable law, against all costs, charges and expenses, including without limitation, attorney’s fees, incurred or sustained by the Executive in connection with any claim against Executive and in connection with any action, suit or proceeding to which the Executive may be made a party by reason of being an officer, director or employee of the Company or of the Partnership or any of its subsidiaries. In connection with the foregoing, the Executive will be covered under any liability insurance policy that protects the other officers and directors of the Company.

 

5.                                      Place of Performance.  Subject to such business travel from time to time as may be reasonably required in the discharge of his duties and responsibilities as an Executive Vice President of the Company and while serving as President of the GDSO Division of the Partnership, the Executive shall perform his obligations hereunder in, or within forty (40) miles of, Waltham, Massachusetts.

 

6.                                      Compensation.

 

(a)                                 Base Salary.  During the Term, the Executive shall be paid an annual base salary of $425,000, subject to increase for the renewal term (if any) as of January 1, 2019, if so determined by the Compensation Committee.  The Executive’s base salary, as may be increased in accordance with this Section 6(a), is hereafter referred to as “Base Salary.” The Base Salary shall be paid in equal installments pursuant to the Company’s customary payroll policies and procedures in force at the time of payment, but in no event less frequently than monthly.

 

(b)                                 Bonus.  From time to time during the Term, the Executive may be eligible to receive a cash bonus (a “Bonus”) in an amount to be determined at the discretion of the Compensation Committee.

 

(c)                                  Incentive Compensation.  The Executive shall participate in the annual short-term incentive compensation plan set forth in the attached Exhibit A (the “Short-Term Incentive Plan”), and the long-term incentive compensation plan set forth in the attached Exhibit B (the “Long-Term Incentive Plan”), and as determined by the Compensation Committee may be eligible to participate in any other incentive plans in which management employees may participate.

 

(d)                                 Reimbursements.  During the Term, the Company shall pay or reimburse the Executive for all reasonable expenses incurred by the Executive on business trips, and for all other business and entertainment expenses reasonably incurred or paid by him during the Term in the performance of his services under this Agreement, in accordance with past practice and with the Company’s expense reimbursement policy as in effect from time to time, upon presentation of expense statements or vouchers or such other supporting documentation as the Company may reasonably require.

 

 

(e)                                  Fringe Benefits.  During the Term, the Executive shall be entitled to participate in the Company’s health insurance, 401(k) and other benefit plans in accordance with Company policies and on the same general basis as other executives of the Company.  During the Term, the Company also will provide the Executive with additional fringe benefits consistent with benefits that have been provided to him under prior arrangements and in accordance with past practice, and with such other benefits as may be approved by the Compensation Committee.

 

(f)                                   Vacation.  During the Term (including the renewal period, if any), the Executive shall be granted 30 days of paid vacation for each calendar year with any unused vacation days to be subject to the Company’s standard vacation policy with respect to the carryover or payment for any such unused vacation days.

 

7.                                      Separation from Service.

 

(a)                                 In General.  If the Executive’s employment is terminated for any reason, he (or his estate) shall be paid on the Date of Termination (i) all amounts of Base Salary due and owing up through the Date of Termination, (ii) any earned but unpaid Bonus, (iii) all reimbursements of expenses appropriately and timely submitted, and (iv) any and all other amounts, including vacation pay, that may be due to him as of the Date of Termination (the “Accrued Obligations”). Additionally, the Executive shall be entitled to retain the following items currently supplied to him by the Company: (i) personal computer, laptop computer and iPad; and (ii) smartphone(s), including all information contained on the smartphone(s) and the then current telephone number(s) for such smartphone(s), it being acknowledged and agreed by the Executive that all information contained on the smartphone(s) shall remain subject to the provisions of Section 9 below. The Company will also maintain the Executive’s e-mail account and provide the Executive with access to, and control over, the e-mail account for a period of no less than six months following termination of employment. Promptly following the Date of Termination, the Executive shall return to the Company all confidential and proprietary information of the Company in his possession.

 

(b)                                 Termination Due to the Death or Disability of Executive.  The Executive’s employment hereunder shall be terminated automatically upon the death or Disability of the Executive.  The Company shall pay or distribute to the Executive (or his estate) upon his termination under this Section 7(b) on the Date of Termination or as soon as reasonably practical (but no more than ten days) thereafter;

 

(i)                                     the Accrued Obligations, plus

 

(ii)                                  a lump sum payment of an amount equal to his Base Salary (determined as of the Date of Termination) multiplied by 200%, plus

 

(iii)                               an amount equal to the target incentive amount under the then applicable Short-Term Incentive Plan as set forth on attached Exhibit A for the fiscal year including the Date of Termination, multiplied by 200%, plus

 

 

(iv)                              the Executive’s interests in the Company’s long-term incentive plans, including, but not limited to, the amounts of cash and/or securities due as a result of the automatic vesting of the Executive’s interests in grants that have been awarded to the Executive under the Global Partners LP Long-Term Incentive Plan, to the extent accelerated vesting is not prohibited under the vesting provisions of the then awarded and unvested grants, plus

 

(v)                                 the Company shall pay the monthly amounts due for all group health, dental, life, disability, vision and similar insurance premiums on behalf of the Executive and his spouse and dependents, if any, for 24 months following the Date of Termination.

 

(c) Termination by the Company Without Cause or by the Executive for Reasons Constituting Constructive Termination.  The Executive’s employment hereunder may be terminated by the Company without Cause or by the Executive for reasons constituting Constructive Termination.  The Company shall pay or distribute to the Executive (or his estate) upon his termination under this Section 7(c) on the Date of Termination or as soon as reasonably practical (but no more than ten days) thereafter:

 

(i)                                     the Accrued Obligations, plus

 

(ii)                                  a lump sum payment of an amount equal to his Base Salary determined as of the Date of Termination multiplied by 200%, plus

 

(iii)                               an amount equal to the target incentive amount under the then applicable Short-Term Incentive Plan as set forth on attached Exhibit A for the fiscal year including the Date of Termination, multiplied by 200%, plus

 

(iv)                              the Executive’s interests in the Company’s long-term incentive plans, including, but not limited to, the amounts of cash and/or securities due as a result of the automatic vesting of the Executive’s interests in grants that have been awarded to the Executive under the Global Partners LP Long-Term Incentive Plan, to the extent accelerated vesting is not prohibited under the vesting provisions of the then awarded and unvested grants, plus

 

(v)                                 the Company shall pay the monthly amounts due for all group health, dental, life, disability, vision and similar insurance premiums on behalf of the Executive and his spouse and dependents, if any, for 24 months following the Date of Termination, plus

 

(vi)                              Notwithstanding any other provision of this Agreement or any other plan, arrangement or agreement to the contrary, if any of the payments or benefits provided or to be provided by the Company or its affiliates to the Executive or for the Executive’s benefit pursuant to this Section 7(c) (“Covered Payments”) constitute parachute payments (“Parachute Payments”) within the meaning of Section 280G of the Code (as defined below), are not eligible for 

 

 

exemption pursuant to Q/A-6(a)(2) of Treas. Reg. § 1.280G-1, and will be subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any interest or penalties with respect to such excise tax (collectively, the “Excise Tax”), then the Company shall pay to the Executive, no later than the time the  Excise Tax is required to be paid by the Executive or withheld by the Company, an additional amount (the “Gross-up Payment”) equal to the sum of the Excise Tax payable by the Executive, plus the amount necessary to put the Executive in the same after-tax position (taking into account any and all applicable federal, state, local and foreign income, employment and excise taxes (including the Excise Tax and any income and employment taxes imposed on the Gross-up Payment)) that he would have been in if the Executive had not incurred any tax liability under Section 4999 of the Code.  Any determination required under this Section 7(c)(vi), including whether any payments or benefits are Parachute Payments, shall be made by the Company in good faith. The Executive shall provide the Company with such information and documents as the Company may reasonably request in order to make a determination under this Section 7(c)(vi). The Company’s determinations shall be final and binding on the Company and the Executive; provided, however, that in the event of a dispute with the Internal Revenue Service, the parties will revise the determinations as necessary to comply with regulatory requirements in accordance with the Internal Revenue Service’s interpretations.

 

In the event that the Executive’s employment is terminated by the Company without Cause or by the Executive for Constructive Termination at any time within three (3) months before a Change in Control and twelve months following a Change in Control, then, in addition to the foregoing severance compensation and benefits, the Executive shall receive 100% accelerated vesting on any and all outstanding Company options, restricted units, phantom units, unit appreciation rights and other similar rights (under the LTIP or otherwise) held by the Executive as in effect on the Date of Termination, such accelerated vesting to occur on the later of (i) the Date of Termination, or (ii) the date of the Change of Control.

 

(d)                                 Termination by the Company for Cause.  The Company’s Board of Directors may terminate the Executive’s employment hereunder for Cause, in which case on the Date of Termination, the Executive will receive payment of the Accrued Obligations.  Notwithstanding any provision herein to the contrary, prior to a termination for Cause, the following shall apply:  (i) the Company will provide notice to the Executive setting forth its intention to terminate the Executive for Cause, describing in detail the nature of the circumstances that support such determination, and the date and time established for a hearing before the Board, which hearing shall be not less than fifteen (15) business days from the date of such notice, (ii) the Executive will have the right to be heard by the Board, and the Executive shall be entitled to representation by counsel at such hearing, provided, however, that such counsel shall be subject to reasonable limitations on direct interaction with the Board members during such hearing as such limitations are established by the Board and provided to the Executive with the notice of the hearing, and (iii) following such hearing, the Board may authorize a termination of the Executive’s employment for Cause only with a 75% majority vote of the full Board. If the Executive retains counsel for the hearing with the Board, and the Board 

 

 

does not terminate Executive for Cause within five business days following the hearing, the Company shall promptly reimburse the Executive for any legal fees and expenses incurred by him in connection with such a hearing.

 

(e)                                  Nonrenewal of the Agreement. If the Company provides notice to the Executive that the Company elects not to renew the Agreement at the end of the applicable Term, and the Executive does not continue to serve as an Executive Vice President of the Company or President of the GDSO Division of the Partnership following the expiration of this Agreement pursuant to a different employment agreement with the Company, the Company shall pay the Executive upon the expiration of the Agreement, or as soon as reasonably practical (but no more than ten days) thereafter, any Accrued Obligations plus a lump sum payment equal to 200% of the Executive’s then Base Salary.

 

(f)                                   Definitions.

 

(i)                                     For the purposes of this Agreement, “Cause” shall mean the Executive (A) has engaged in gross negligence or willful misconduct in the performance of his duties, (B) has committed an act of fraud, embezzlement or willful breach of a fiduciary duty to the Company or any of its subsidiaries (including the unauthorized disclosure of any material secret, confidential and/or proprietary information, knowledge or data of the Company or any of its subsidiaries); (C) has been convicted of a crime involving fraud or moral turpitude or any felony or (D) has breached any material provision of this Agreement or any of the restrictions and covenants set forth in Annex I hereto other than as a result of the Executive’s inability to perform his obligations hereunder solely due to his poor physical or mental health.  The Executive must be provided a written notice from the Company, giving him at least 30 days to affect a cure of any claimed occurrence under (A), (B) or (D) above that is capable of being cured, prior to the delivery of any notice described under Section 7(d)(i) hereof.

 

(ii)                                  “Change in Control” shall occur upon: (A) the date that any one person, entity or group (other than the successors to the interests of Alfred Slifka, and other than Richard Slifka, Eric Slifka or the Executive, or their respective family members or entities they control, individually or in the aggregate, directly or indirectly (collectively referred to hereinafter as the “Slifkas”)) acquires beneficial ownership of the membership interests of the Company that, together with the membership interests of the Company already owned beneficially by such person, entity or group, constitutes more than 50% of the total voting power of the membership interests of the Company; provided, however, if any one person, entity or group is considered to control, directly or indirectly, more than 50% of the total voting power of the membership interests of the Company, the acquisition of additional membership interests by the same person, entity or group shall not be deemed to be a Change in Control; (B) a consolidation or merger (in one transaction or a series of related transactions) of the Company pursuant to which the holders of the Company’s equity securities 

 

 

immediately prior to such transaction or series of related transactions would not be the beneficial owners immediately after such transaction or series of related transactions of at least 50% of the voting power of the entity surviving such transaction or series of related transactions; or (C) the sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company to a person other than the Slifkas or any of them. In all respects, the definition of “Change in Control” shall be interpreted to comply with Section 409A(a)(2)(A)(v) of the Internal Revenue Code of 1986 (the “Code”) and any successor statute, and/or guidance thereunder, and the provisions of Treasury Regulation Section 1.409A and any successor regulation and guidance thereto; provided, however, an interpretation in compliance with Section 409A of the Code shall not expand the definition of Change in Control in any way or cause an acquisition by the Slifkas to result in a Change in Control.

 

(iii)                               “Constructive Termination” means termination of this Agreement by the Executive as a result of any (A) substantial diminution, without the Executive’s written consent, in the Executive’s working conditions consisting of (1) a material reduction in the Executive’s duties and responsibilities, (2) any change in the reporting structure so that the Executive no longer reports solely to the President and Chief Executive Officer of the Company, or (3) a relocation of the Executive’s place of work further than forty (40) miles from Waltham, Massachusetts, or (B) a material breach of this Agreement by the Company.  To be able to terminate his employment with the Company for Constructive Termination, the Executive must provide notice to the Company of the existence of any of the conditions set forth in the immediately preceding sentence within 90 days of his becoming aware of the initial existence of such condition(s), and the Company must fail to remedy such condition(s) within 30 days of such notice.  In no event shall the Date of Termination in connection with a Constructive Termination occur any later than one year following the notice of the existence of the condition(s) constituting a Constructive Termination hereunder.

 

(iv)                              “Disability” shall mean a physical or mental condition which (A) renders the Executive, with or without reasonable accommodation, unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (B) by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, results in the Executive receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Company.

 

(g)                                  Notice of Termination.  Any termination or non-renewal (except due to the death of Executive) by the Company or the Executive shall be communicated by written Notice of Termination to the other party hereto.   For purposes of this Agreement, a “Notice of Termination” shall mean a notice which (i) shall state the effective date of such termination,

 

 

(ii) shall indicate the specific termination provision in this Agreement relied upon and (iii) shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated.  Any such notice shall be provided in accordance with the requirements of Section 20 hereof. Any notice of Constructive Termination by the Executive shall be given by the Executive within 90 days of his becoming aware of the existence of the condition upon which the Constructive Termination is based.

 

(h)                                 Date of Termination.  The “Date of Termination” shall mean (i) the date of death, if the Executive’s employment is terminated because of death, (ii) the date the Executive is determined to have a Disability, if the Executive’s termination is based on his Disability, and (iii) if the Executive’s employment is terminated for any other reason (including, without limitation, non-renewal), the date specified in the Notice of Termination, which date shall be in accordance with the timing rules set out in (d) or (g) of this Section 7, as applicable. With respect to any compensation payable under this Agreement that is subject to Section 409A of the Code, references to the Executive’s Date of Termination or termination of employment (and variations thereof) shall be deemed to refer only to the Executive’s “separation from service” within the meaning of Section 1.409A-1(h) of the U.S. Treasury Regulations, applying the default terms thereof.

 

(i)                                     Delayed Payments. Notwithstanding any other provision with respect to the timing of payments under this Section 7, if, at the time of the Executive’s termination, the Executive is deemed to be a “specified employee”  (within the meaning of Section 409A of the Code, and any successor statute, regulation and guidance thereto) of the Company, then only to the extent necessary to comply with the requirements of Section 409A of the Code, any payments to which the Executive may become entitled under Section 7 as a result of his “separation from service” (within the meaning of Section 409A of the Code, and any successor statute, regulation and guidance thereto) which are subject to Section 409A of the Code (and not otherwise exempt from its application) will be withheld until the first business day of the seventh month following the termination of the Executive’s employment, at which time the Executive shall be paid an aggregate amount equal to six months of payments otherwise due to the Executive under the terms of this Section 7, as applicable, plus (to the extent not prohibited by Section 409A of the Code) interest on such amounts at the then applicable prime rate of interest as established from time to time by Bank of America Corporation or its successor.  After the first business day of the seventh month following the termination of the Executive’s employment and continuing each month thereafter, the Executive shall be paid the regular payments otherwise due to the Executive in accordance with the terms of this Section 7, as applicable.

 

(j)                                    Nondisparagement.  Each of the Company and the Executive agree not to make any disparaging comments or remarks, orally or in writing, about the other party following the termination or expiration of this Agreement.

 

8.                                      Section 409A.  The parties hereto intend that this Agreement comply with the requirements of Section 409A of the Code and the regulatory guidance thereunder.   If any provision provided herein may result in the imposition of an additional tax or penalty under the provisions of Section 409A of the Code, the Executive and the Company agree to amend any 

 

 

such provision to avoid imposition of any such additional tax, to the extent possible, in the manner that the Executive and the Company mutually agree is appropriate to comply with Section 409A of the Code; provided that, to the extent possible, any such amendment shall minimize any decrease in the payments or benefits to the Executive contemplated herein.

 

9.                                      Confidential Information; Unauthorized Disclosure.

 

(a)                                 During the Term and for the period ending two years following the Date of Termination, the Executive shall not, without the written consent of the Board or a person authorized thereby, disclose to any person, other than an employee of the Company, the Partnership or its subsidiaries or a person to whom disclosure is reasonably necessary or appropriate in connection with the performance by the Executive of his duties as an Executive Vice President of the Company and the Partnership, any secret, confidential and/or proprietary information, knowledge or data obtained by him while in the employ of the Company or any of its affiliates with respect to the Company, the Partnership or any of its subsidiaries and their respective businesses, the disclosure of which he knows or should know will be damaging to the Company, the Partnership or any of its subsidiaries; provided however, that such information, knowledge or data shall not include (i) any information, knowledge or data known generally to the public (other than as a result of unauthorized disclosure by the Executive) or (ii) any information, knowledge or data which the Executive may be required to disclose by any applicable law, order, or judicial or administrative proceeding.

 

(b)                                 The Executive acknowledges that money damages would not be a sufficient remedy for any breach of this Section 9 by the Executive, and the Company, the Partnership or its subsidiaries shall be entitled to enforce the provisions of this Section 9 by seeking specific performance and injunctive relief as remedies for such breach or any threatened breach.  Such remedies shall not be deemed the exclusive remedies for a breach of this Section 9 but shall be in addition to all remedies available at law or in equity, including the recovery of damages from the Executive and his agents.

 

10.                               Payment Obligations Absolute.  Except as specifically provided in this Agreement, the Company’s obligation to pay the Executive the amounts and to make the arrangements provided herein shall be absolute and unconditional and shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right which the Company or the Partnership (including its affiliates) may have against him or anyone else.   All amounts payable by the Company shall be paid without notice or demand.  The Executive shall not be obligated to seek other employment in mitigation of the amounts payable or arrangements made under any provision of this Agreement, and except as provided in Section 7(c) above, the obtaining of any such other employment shall in no event effect any reduction of the Company’s obligations to make the payments and arrangements required to be made under this Agreement.

 

11.                               Successors.  This Agreement shall inure to the benefit of and be binding upon the Company and its successors and permitted assigns and any such successor or permitted assignee shall be deemed substituted for the Company under the terms of this Agreement for all purposes. As used herein, “successor” and “assignee” shall be limited to any person, firm, corporation or 

 

 

other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires control of the Company or to which the Company assigns this Agreement by operation of law or otherwise in connection with any sale of all or substantially all of the assets of the Company, provided that any successor or permitted assignee promptly assumes in a writing delivered to the Executive this Agreement and, in no event, shall any such succession or assignment release the Company from its obligations hereunder. The Company will require any successor (whether direct or indirect, by purchase, merger or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall  mean the Company as herein before defined and any successor to all or substantially all of its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.

 

12.                               Assignment.  The Executive shall not have any right to pledge, hypothecate, anticipate or assign this Agreement or the rights hereunder, except by will or the laws of descent and distribution, or delegate his duties or obligations hereunder.

 

13.                               Governing Law.  The provisions of this Agreement shall be construed in accordance with, and governed by, the laws of the Commonwealth of Massachusetts without regard to principles of conflict of laws.

 

14.                               Entire Agreement.  The Company and the Executive intend that this Agreement shall supersede the January 22, 2015 Agreement and that this Agreement together with (i) the attached Annex I and Exhibits A and B hereto, and (ii) those certain Global Partners LP Long-Term Incentive Plan Grants of Phantom Units to the Executive dated June 27, 2013 and August 16, 2017, constitute the entire agreement of the parties with regard to the subject matter hereof, and contain all of the covenants, promises, representations, warranties and agreements between the parties with respect to such subject matter.  Without limiting the scope of the preceding sentence, as of the Effective Date, all understandings and agreements preceding the Effective Date and relating to the subject matter hereof are hereby null and void and of no further force and effect, including, without limitation all prior employment and severance agreements, if any, by and between the Company and the Executive; provided that, nothing contained in the foregoing shall be deemed to supersede or make invalid any prior agreements between the Executive and the Company concerning long-term incentive plan awards and any agreement by and between the Executive and the Company, the Partnership or any affiliated entity or member of the Partnership in his capacity as an interest holder, including without limitation the Omnibus Agreement.

 

15.                               Modification.  Any modification of this Agreement will be effective only if it is in writing and signed by the parties hereto.

 

16.                               No Waiver.  No failure by either party hereto at any time to give notice of any breach by the other party of, or to require compliance with, any condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.

 

 

17.                               Severability.  Any provision in this Agreement which is prohibited or unenforceable in any jurisdiction by reason of applicable law shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating or affecting the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

18.                               Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement.

 

19.                               Withholding of Taxes and Other Employee Deductions.  The Company may withhold from any benefits and payments made pursuant to this Agreement all federal, state, city and other taxes as may be required pursuant to any law or governmental regulation or ruling and all other normal employee deductions made with respect to the Company’s employees generally.

 

20.                               Notice.  For the purpose of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand, or by a nationally recognized overnight delivery service or mailed by U.S. registered mail, return receipt requested, postage prepaid, addressed to the parties at their addresses set forth below, or to such other addresses as either party may have furnished to the other in writing in accordance herewith except that notices of change of address shall be effective only upon receipt.

 

If to the Company:

 

Global GP LLC
 P.O. Box 9161
 800 South Street, Suite 500
 Waltham, Massachusetts 02454-9161
 Attention: General Counsel and the Chairman of the Compensation Committee

 

with a copy to:

 

Brenda K. Lenahan
 Vinson & Elkins L.L.P.
 666 Fifth Avenue
 25th Floor
 New York, New York 10103

 

If to the Executive:

 

At the Executive’s last known home address listed in the Company’s personnel records from time to time

 

 

with a copy to:

 

Michael A. Hickey

Goulston & Storrs, P.C.

400 Atlantic Ave.
 Boston, Massachusetts 02110

 

21.                               Headings.  The section headings have been inserted for purposes of convenience and shall not be used for interpretive purposes.

 

[Remainder of page intentionally blank]

 

 

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

 

	
 
    	
GLOBAL GP LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Eric Slifka
    
	
 
    	
 
    	
Eric   Slifka
   President & CEO
    
	
 
    	
 
    
	
 
    	
Date:
    	
4/23/18
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew P. Slifka
    
	
 
    	
 
    	
ANDREW P. SLIFKA
    
	
 
    	
 
    
	
 
    	
Date:
    	
4/23/18
    
				

 

[Signature page to Employment Agreement]

 

 

ANNEX I

 

Non-Competition Provisions

 

Non-competition; Nonsolicitation.   During the Term, and in the event that the Executive’s employment is terminated for any reason, then for a period of one (1) year following the Date of Termination (the “Restrictive Period”), the Executive shall be prohibited from working (as an employee, consultant, advisor, director or otherwise) for, engaging in or acquiring or investing in any business having assets engaged in the following businesses in New England and the other jurisdictions in which the Partnership Group is conducting business as of the Date of Termination  (the “Restricted Businesses”): (i) wholesale or retail marketing, sale, distribution and transportation of refined petroleum products, crude oil, renewable fuels (including ethanol and biofuels), and natural gas liquids (including ethane, butane, propane and condensates); (ii) the storage of refined petroleum products and/or any of the other products identified in clause (i) of this paragraph in connection with any of the activities described in said clause (i); (iii) the retail sale of convenience store items and sundries and related food service, whether or not related to the retail sale of refined petroleum products including, without limitation, gasoline; (iv) bunkering; and (v) any other business in which the Company or its Affiliates (a) becomes engaged during the period Executive is employed by the Company or any of its Affiliates, or (b) is preparing to become engaged as of the time that Executive’s employment with the Company or any of its Affiliates ends and, with respect to parts (a) and (b) of this clause (v), the Executive has participated in or obtained Confidential Information about such business or anticipated business. During the Restrictive Period, the Executive also shall not directly or indirectly solicit any employees, contractors, vendors, suppliers or customers of the Company or the Partnership Group to cease to be employed by or otherwise do business with the Company or the Partnership Group, or to reduce the same, or to be employed or otherwise do business with any Restricted Business.  Notwithstanding any provision of this Annex I to Amended and Restated Employment Agreement (this “Annex I”) to the contrary, the Executive may own up to 3% of a publicly traded entity that is engaged in one or more of the Restricted Businesses.  If any court determines that any of the provisions of this Annex I are invalid or unenforceable, the remainder of such provisions shall not thereby be affected and shall be given full effect without regard to the invalid provisions. If any court construes any of the provisions of this Annex I, or any part thereof, to be unreasonable because of the duration of such provision or the geographic scope thereof, such court shall have the power to reduce the duration or restrict the geographic scope of such provision and to enforce such provision as so reduced or restricted.  Notwithstanding the foregoing or any other provision of this Annex I, nothing in this Annex I shall limit the Executive’s ability to perform services in any capacity or invest in any of the following: (I) money management firm; (II) investment partnership; (III) investment or private equity firm; or (IV) private equity or other investment fund; except that if any such firm, partnership or fund referenced in subsections (I) through (IV) contemplates or makes direct investments in the Partnership Group or in any Restricted Business, the Executive must recuse himself and may not personally, in any respect, be actively involved, actively participate, or directly invest, and must fully comply with the provisions of this Annex 1.

 

Any restrictions on the Executive otherwise prohibited under this Annex I may be waived only by express written permission of the Conflicts Committee of the Company’s Board of Directors.

 

 

EXHIBIT A

 

Short-Term Annual Cash Incentive Plan

 

The Executive shall participate in the 2018 short-term cash incentive plan (the “STIP”) described below and, in the event of a renewal term under the Amended and Restated Employment Agreement, the Executive also shall participate in a 2019 STIP (which shall be mutually agreed upon on or before April 15, 2019).

 

During the first calendar quarter of 2018, the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) established (a) threshold financial metrics required to be met for any cash incentive amount to be awarded under the 2018 STIP in respect of fiscal year 2018 (the “financial metrics”), and (b) a discretionary cash component for the amount of the cash incentive (if any) to be awarded under the 2018 STIP regardless of whether the financial metrics threshold are or are not met or exceeded.  The targets, metrics (including any thresholds) and discretionary component established by the Compensation Committee are set forth in a payout grid, a copy of which has been provided to the Executive prior to his execution of the Amended and Restated Employment Agreement.  The 2018 STIP design provides that 50% of the cash incentive amounts (if any) earned for 2018 will be determined by the Compensation Committee based upon the Partnership’s achievement of the financial metrics, and 50% of the cash incentive amounts (if any) for 2018 will be determined at the discretion of the Compensation Committee.  Under the 2018 STIP, the Executive’s “award target” cash incentive amount is 100% of his Base Salary, and his 2018 maximum cash incentive amount is 200% of his Base Salary.

 

During the first calendar quarter of 2019, the Compensation Committee shall establish (a) threshold financial metrics required to be met for any cash incentive amount to be awarded under the 2019 STIP in respect of fiscal year 2019 (the “financial metrics”), and (b) a discretionary cash component for the amount of the cash incentive (if any) that will be awarded under the 2019 STIP regardless of whether the financial metrics threshold are or are not met or exceeded.  The targets, metrics (including any thresholds) and discretionary component established by the Compensation Committee shall be set forth in a payout grid, a copy of which shall be provided to the Executive for his review and input prior to the commencement of the renewal term, if any, under the Amended and Restated Employment Agreement. The 2019 STIP design shall be developed by the Compensation Committee in consultation with its compensation consultant.

 

Awards under the 2018 STIP and 2019 STIP, if applicable, shall be paid within 21⁄2 months of the end of the fiscal year to which the STIP applies; provided, however, that if the Partnership has not completed its audited consolidated financial statements within 21⁄2 months of the end of that fiscal year, the award shall be paid within 5 business days following completion of the Partnership’s audited consolidated financial statements for such fiscal year, but in no event later than September 30 of the year following the end of the applicable fiscal year; and further provided, that any such payment shall be made in a manner that is either exempt from, or in compliance with, Section 409A of the Internal Revenue Code of 1986 (the “Code”) and any successor statute, and/or guidance thereunder, and the provisions of Treasury Regulation Section 1.409A and any successor regulation and guidance thereto (collectively, “Section 409A”).

 

 

EXHIBIT B

 

Long-Term Incentive Plan Grants

 

The Executive shall be eligible to participate in the Company’s long-term incentive plan grants throughout the Term of the Employment Agreement.  The Company’s Compensation Committee shall determine whether and in what amounts to grant the Executive cash awards, performance-restricted units, phantom units or some functional equivalent of Global Partners LP, and shall establish the terms and conditions of such grants, including the timing of the grants, the vesting periods, if any, and any applicable milestones, all in accordance with the Company’s then applicable long-term incentive plan and in compliance with Section 409A of the Code and any successor statute, regulation or guidance thereunder.

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