Form of Unit Option Agreement



 Exhibit 10.11 
  

					
	 Notice of Grant of Unit Option
 and
Unit Option Agreement
	  	Valero GP, LLC  

	  	ID: 74-2958816
		  	P. O. Box 696000
		  	San Antonio, TX 78269-6000
			
	«First_Name» «Middle_Name» «Last_Name»	  	Option Number:	  	«NUM»
	«EXTRA_FIELD_2»	  	Plan:	  	«PLAN_NAME»
	«EXTRA_FIELD_3»	  		  	
		  	ID:	  	«SSN»

  

  
 Effective «Option_Date», you have been granted an Option to buy «Shares_Granted» Units of Valero L.P. at
«Option_Price» per Unit. 
 The total Option price of the Units granted is «Total_Option_Price». 
 Your Options will vest on the dates shown below. 
 Units                            Grant
Date            Vest Type                    Full
Vest                    
Expiration                                     
 «Shares_Period_1»         «Option_Date» «Vest_Type_Period_1»
«Vest_Date_Period_1» «Expiration_Date_Period_1» 
 «Shares_Period_2»
        «Option_Date» «Vest_Type_Period_2» «Vest_Date_Period_2» «Expiration_Date_Period_2» 
 «Shares_Period_3»         «Option_Date» «Vest_Type_Period_3» «Vest_Date_Period_3» «Expiration_Date_Period_3»

 «Shares_Period_4»         «Option_Date» «Vest_Type_Period_4»
«Vest_Date_Period_4» «Expiration_Date_Period_4» 
 «Shares_Period_5»
        «Option_Date» «Vest_Type_Period_5» «Vest_Date_Period_5» «Expiration_Date_Period_5» 
 By your signature and the Company’s signature below, you and the Company agree that the Option referenced above is granted under and governed by the terms and conditions of the Valero GP, LLC Amended and
Restated 2003 Employee Unit Incentive Plan, as amended, and the Unit Option Agreement attached hereto, all of which are made a part of this agreement. 
  

  
  

									
	  VALERO GP, LLC	 		 		 	
					
	By:	 	  	 		 		 	«Option_Date»
	 Curtis V. Anastasio
 President &
Chief Executive Officer
	 		 		 	Date
				
	  	 		 		 	  
	 «First_Name» «Middle_Name» «Last_Name»
 Participant
	 		 		 	Date








 Unit Option Agreement 
 THIS AGREEMENT is between Valero GP, LLC, a Delaware limited liability company (the “Company”) and the person whose signature is set forth on
the signature page hereof (“Participant”). 
 RECITALS 
 WHEREAS, the Company has adopted the Valero GP, LLC Amended and Restated 2003 Employee Unit Incentive Plan (the “Plan”) which provides
for the grant of Options to certain Employees; and 
 WHEREAS, the Company wishes to grant to Participant an Option to purchase Units of
Valero L.P. (the “Partnership”) on the terms and conditions specified herein; 
 NOW THEREFORE, the parties agree as follows (any
capitalized terms used herein but not defined herein shall have the respective meanings given in the Plan): 
 1. Option 

a. Grant. Subject to the terms and conditions of this Agreement and the Plan, the Company hereby grants to Participant an Option to purchase
all or any part of the Units set forth on the signature page hereof, at the exercise price set forth thereon. The Option is not intended to be an incentive stock option within the meaning of Section 422 of the Internal Revenue Code. 

b. Term. The term of the Option shall expire at 11:59 p.m. on the seventh anniversary of the Grant Date set forth on the signature page.

 2. Exercise. Participant may, subject to the limitations of this Agreement and the Plan, exercise all or any portion of the Option
by following the applicable exercise provisions specifying the number of Units with respect to which the Option is being exercised and accompanied by payment of the exercise price for such Units. The method or methods by which payment of the
exercise price may be made will include any method acceptable to the Company and the Partnership at the time of exercise of the Option. 
 3.
Retirement, Death, Disability. If a Participant’s employment is terminated because of retirement, death or disability, any Option held by the Participant shall remain outstanding and vest or become exercisable according to the
Option’s original terms. 
 4. Limited Interest. 
 a. The grant of the Option shall not be construed as giving Participant any interest other than as provided in this Agreement. 
 b. Participant shall have no rights as a Unit holder as a result of the grant of the Option, until the Option is exercised, the exercise price is paid, and the Units issued thereunder. 
 c. The grant of the Option shall not affect in any way the right or power of the Company to make or authorize any or all adjustments, recapitalizations,
reorganizations, or other changes in the Company’s or the Partnership’s capital structure or its business, or any merger, consolidation or business combination of the Company or the Partnership’s, or any issuance or modification of
any term, condition, or covenant of any bond, debenture, debt, preferred stock or other instrument ahead of or affecting the Units or the rights of the holders thereof, or the dissolution or liquidation of the Company or the Partnership, or any sale
or transfer of all or any part of its assets or business or any other act or proceeding of the Company or the Partnership, whether of a similar character or otherwise. 
 5. Incorporation by Reference. The terms of the Plan, as amended, to the extent not stated herein are expressly incorporated herein by reference and in the event of any conflict between this Agreement and the
Plan, the Plan shall govern. 







 6. Direct Registration. Participant agrees that in lieu of stock certificates, any Units issuable
in connection with the exercise of the Options may be issued in uncertificated form pursuant to the Direct Registration Service of the Partnership’s transfer agent.