Exhibit 10.1
SEPARATION
AGREEMENT
THIS SEPARATION AGREEMENT (this
“ Agreement ”) is made November 24, 2008
among TravelCenters of America LLC (“ TA ”),
TravelCenters of America Holding Company LLC (successor to
TravelCenters of America, Inc., “ Holding
”), TA Operating LLC (successor to TA Operating Corporation,
“Operating” and together with Holding and TA, the
“ Employers ”) and Larry W. Dockray (“
Dockray ”).
RECITAL
Dockray and TA are parties to a
Position Agreement Summary dated October 27, 2006 (the “
2006 Letter ”), a Stay Bonus Letter dated
January 30, 2007 (the “ 2007 Letter ”) and
may be party to certain other written or unwritten agreements
relating to Dockray’s employment by the Employers (together
with the 2006 Letter and the 2007 Letter, as amended, the “
Employment Related Agreements ”). Dockray has
also received shares of TA pursuant to a Restricted Share Agreement
dated November 26, 2007, as amended and restated concurrently
with the entry into this Agreement (the “ 2007 Share
Agreement ”). Dockray and the Employers desire to
provide for Dockray’s cooperation with regard to transitional
duties in planning for the end of Dockray’s employment with
the Employers. In addition, Dockray desires to be relieved of
his responsibilities as an executive officer of TA and its
subsidiaries, and the parties desire to (i) provide for
continued vesting of the restricted common shares of TA which
Dockray received under the 2007 Share Agreement and
(ii) provide for an additional grant of restricted common
shares of TA to Dockray as set forth below.
NOW, THEREFORE, the parties covenant
and agree as follows:
Section 1.
Employment Related
Agreements .
Dockray acknowledges that he has received all payments and other
consideration due him under the 2006 Letter, other than with
respect to relocation and housing reimbursements described therein,
which shall hereinafter be exclusively governed by Section 5
below, and that the aggregate amount due him and unpaid under all
Employment Related Agreements is $968,962 (the “
Payment ”), which Payment will be paid on
January 31, 2009.
Section 2.
Resignation
. By execution of this
Agreement, Dockray hereby resigns as Executive Vice President of
Operations of TA and of each of TA’s subsidiaries, effective
at the close of business on February 1, 2009 and agrees to
take any action requested by TA to evidence such
resignation.
Section 3.
Duties;
Location . From
the date of this Agreement through February 1, 2009 (the
“ Full Time Employment Period ”), Dockray will
continue to devote his full working time and energies to the
business and affairs of TA and its subsidiaries and shall have such
duties and perform such tasks associated with transitioning his
responsibilities and such other duties and tasks for TA and its
subsidiaries as are reasonably assigned to him from time to time by
the President and Chief Executive Officer of TA. From
February 2, 2009 through June 30, 2009 (the “
Part Time Employment Period ”), Dockray will make
himself available to provide services to TA and its subsidiaries at
reasonable times and on reasonable advance notice. From
July 1, 2009
through January 1, 2010 (the “
Consulting Period ”), Dockray will make himself
available to provide consulting services to TA and its
subsidiaries, as may be requested by TA, at reasonable times and on
reasonable advance notice.
Section 4.
Compensation and
Vesting .
(a)
During the Full Time Employment
Period, Dockray will continue to receive his base salary at the
rate of $301,000 per year ($25,083.33 per month), payable in
semi-monthly installments in accordance with the Employers’
current practice and will continue to participate in such benefit
arrangements of the Employers in which Dockray is participating as
of the date of this Agreement. During the Part Time
Employment Period, Dockray will receive $12,500 per month, payable
in semi-monthly installments in accordance with the
Employers’ current practice. During the Part Time
Employment Period and the Consulting Period, Dockray (and such
family members as are currently covered under the Employer’s
group health plan) will continue to participate in the
Employers’ group health plan paying the same portion of the
premiums for such medical coverage as if Dockray had remained a
full time employee of the Employers but will not participate in any
other benefit arrangements. Additionally, if the Employers
desire Dockray to provide specific services during the
Part Time Employment Period, they shall so advise him in
writing, pay Dockray an hourly fee of Seventy Five Dollars ($75.00)
for hours worked and reimburse Dockray for approved out-of-pocket
expenses. During the Part Time Employment Period, the
Employers will not request (and Dockray will not provide) more than
forty (40) hours of such specific services per week. During
the Consulting Period, if the Employers desire Dockray to provide
specific services, they shall so advise him in writing, pay Dockray
an hourly fee of One Hundred Dollars ($100.00) for hours worked and
reimburse Dockray for approved out-of-pocket expenses. At the
expiration of the Consulting Period, the Employers will provide
written notification to Dockray of his rights under the
Consolidated Omnibus Budget Reconciliation Act of 1985 (“
COBRA ”) to continue participation in the
Employers’ group health plan provided that if Dockray (and/or
his spouse and/or dependents) properly elect continued medical
COBRA coverage, Dockray (and/or his spouse and/or dependents) shall
each pay the full premium for such medical coverage.
Following the expiration of Dockray’s COBRA rights, if the
Employers are permitted, after making commercially reasonable
efforts, to provide continued medical coverage under the
Employers’ group health plans, Dockray (and/or his spouse
and/or dependents) may continue to participate until March 1,
2016, so long as each of Dockray and/or his spouse and/or
dependents pays the full premium and costs for such medical
coverage.
(b)
Provided that Dockray has not
revoked the release described in Section 13(a) hereof or
otherwise defaulted under the terms of this Agreement, the
Employers will pay Dockray a bonus of Two Hundred Thousand Dollars
($200,000) for the 2008 calendar year, payable to Dockray on or
prior to December 31, 2008. Provided that Dockray has
entered into and has not revoked the release described in
Section 13(b) hereof and not otherwise defaulted under
the terms of this Agreement, the Employers will pay Dockray a bonus
(the “ 2009 Bonus ”) of One Hundred Thousand
Dollars ($100,000) plus One Hundred Dollars ($100) multiplied by
the number of hours Dockray has worked during the Consulting
Period, up to a maximum of forty (40) hours per week, for the 2009
calendar year, payable to Dockray on February 1,
2010.
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(c)
TA has previously granted to Dockray
7,500 restricted common shares of TA (the “ 2007 Grant
”). The restricted common shares granted under the 2007
Grant will vest, subject to the terms and conditions of TA’s
2007 Equity Compensation Plan and the 2007 Grant, as currently
scheduled through January 1, 2010, whereupon all unvested
shares granted under the 2007 Grant will vest immediately.
Concurrently with its entry into this Agreement, TA has granted to
Dockray an additional forty-thousand (40,000) restricted common
shares of TA (the “ 2008 Grant ”), subject to
the following vesting schedule and the terms and conditions of
TA’s 2007 Equity Compensation Plan and the restricted share
agreement entered into by Dockray and TA as of the date hereof (the
“ 2008 Share Agreement ”):
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Number of Shares
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Vesting Date
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8,000
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November 24, 2008
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8,000
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November 24, 2009
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24,000
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January 1, 2010
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Total:
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40,000
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Dockray and TA agree that for
purposes of the 2007 Grant and 2008 Grant, Dockray shall be deemed
to be providing “significant services” to TA through
the earlier of (i) January 1, 2010 and (ii) the date
on which Dockray commits a breach of this Agreement including,
without limitation, by failing to provide the services required
hereunder or by breaching the Restrictive Covenants (defined
below).
Section 5.
Housing; Relocation
Expenses . The
Employers agree to purchase Dockray’s current residence in
Westlake, Ohio 44145 for $810,000. The purchase of
Dockray’s residence by the Employers shall be completed on or
before January 15, 2009, or on such other date as may be
reasonably agreed by the parties. Professional fees and
expenses associated with such sale shall be borne by the
Employers. Dockray shall convey to the Employers good,
marketable title to the residence, free and clear of all liens,
claims and encumbrances and shall execute such documents
(including, without limitation, a deed) as are customary for this
type of transaction. The Employers will reimburse
Dockray for reasonable expenses associated with his relocation from
Westlake, Ohio to Las Cruces, New Mexico. Any such
reimbursements shall be made promptly.
Section 6.
Covenants
. Dockray acknowledges that
(i) TA and its subsidiaries are engaged in the business of
operating a travel center and truckstop network, with facilities
that provide motor fuel pumping in addition to one or more of the
following services: truck care and repair services, fast food
restaurants, a full-service restaurant, a convenience store,
showers, laundry facilities, telephones, recreation rooms, truck
weighing scales and other compatible business services approved by
TA (the “ Business ”); (ii) Dockray’s
work for the Employers has given him, and will continue to give
him, trade secrets of, and confidential and/or proprietary
information concerning, the Business; (iii) the agreements and
covenants contained in this Section 6 are essential to protect
the Business and the goodwill associated with it.
Accordingly, Dockray covenants and agrees as follows:
(a)
Confidential
Information .
During the Full Time Employment Period, the Part Time
Employment Period, the Consulting Period and at any time
thereafter, Dockray shall not (i) disclose to any person not
employed by TA or a subsidiary, or not engaged to render services
to
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TA or a subsidiary or (ii) use for the
benefit of himself or others, any confidential information of TA,
any of TA’s subsidiaries or of the Business obtained by him,
including, without limitation, “know-how,” trade
secrets, details of customers’, suppliers’,
manufacturers’ or distributors’ contracts with TA or
any of TA’s subsidiaries, pricing policies, financial data,
operational methods, marke