Document:

exv10w5

Exhibit 10.5

FIRST AMENDMENT TO THE

HOLLY CORPORATION

LONG-TERM INCENTIVE COMPENSATION PLAN

As Amended and Restated as of May 24, 2007

(Formerly designated the Holly Corporation 2000 Stock Option Plan)

     THIS FIRST AMENDMENT is effective January 1, 2005 (the “Effective Date”) and is made by Holly
Corporation, a Delaware corporation (the “Company”).

W
 I T N E S S E
T H: 

     WHEREAS, the board of directors of the Company (the “Board”) previously adopted the Holly
Corporation Long-Term Incentive Compensation Plan, as amended and restated as of May 24, 2007
(formerly designated the Holly Corporation 2000 Stock Option Plan) (the “Plan”);

     WHEREAS, Section 10(f) of the Plan provides that the Plan may be amended by the Board without
approval of the stockholders of the Company, except that any amendment to the Plan of which
approval of the stockholders is required by any federal or state law or regulation or the rules of
any stock exchange on which the shares of the Company are listed or quoted must be approved by the
stockholders of the Company; and

     WHEREAS, the Board has determined that it is desirable to amend the Plan, in accordance with
the final regulations promulgated under section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”), to ensure that, to the extent subject to Code section 409A, the payments and
other benefits provided under the Plan comply therewith and to avoid the imposition of any adverse
tax consequences under section 409A of the Code.

     NOW, THEREFORE, the Plan shall be amended as of the Effective Date as set forth below:

     1. The following sentence shall be added to the end of Section 2(i) of the Plan:

Notwithstanding anything to the contrary herein or in any Award agreement, any Award
that constitutes a “deferral of compensation” (within the meaning of Section 409A of
the Code and the regulations and other authoritative guidance promulgated thereunder
(collectively, the “Nonqualified Deferred Compensation Rules”)), and that is not
exempt from Section 409A of the Code pursuant to an applicable exemption (any such
Award, a “409A Award”) shall not become exercisable, be settled or otherwise trigger
a payment or distribution upon a Participant’s Disability pursuant to the Plan or
the applicable Award agreement controlling such 409A Award unless the Disability
incurred by the Participant constitutes a Disability within the meaning of the
Nonqualified Deferred Compensation Rules.

 

 

     2. Section 9(d) of the Plan shall be deleted in its entirety and shall be replaced with the
following:

     (d) Form and Timing of Payment under Awards; Deferrals. Subject to the terms
of the Plan and any applicable Award agreement, payments to be made by the Company
or a Subsidiary upon the exercise of an Option or other Award or settlement of an
Award may be made in a single payment or transfer, in installments, or on a deferred
basis. The settlement of any Award may, subject to any limitations set forth in the
Award agreement, be accelerated and cash paid in lieu of Shares in connection with
such settlement, in the discretion of the Committee or upon occurrence of one or
more specified events. Notwithstanding anything to the contrary herein or in any
applicable Award agreement, no 409A Award shall be exercisable, be settled or
otherwise trigger a payment or distribution upon the occurrence of any event that
does not qualify as a permissible time of distribution in respect of such 409A Award
under the Nonqualified Deferred Compensation Rules; except that, to the extent
permitted under the Nonqualified Deferred Compensation Rules, the time of exercise,
payment or settlement of a 409A Award shall be accelerated, or payment shall be made
under the Plan in respect of such Award, as determined by the Committee in its
discretion, to the extent necessary to pay income, withholding, employment or other
taxes imposed on such 409A Award. In the event any 409A Award is designed to be
paid or distributed upon a Participant’s termination of employment, such payment or
distribution shall not occur in the event the Participant holding such 409A Award
continues to provide or, in the 12 month period following such termination of
employment, is expected to provide, sufficient services to the Company that, under
the Company’s applicable policies regarding what constitutes a “separation from
service” for purposes of Section 409A of the Code, such Participant does not incur a
separation from service for purposes of Section 409A of the Code on the date of
termination of the employment relationship. To the extent any 409A Award does not
become exercisable or is not settled or otherwise payable upon a Participant’s
termination of employment or upon the occurrence of some other event provided in the
Plan or the Award agreement as a result of the limitations described in the
preceding provisions hereof, such Award shall become exercisable or be settled or
payable upon the occurrence of an event that qualifies as a permissible time of
distribution in respect of such 409A Award under the Nonqualified Deferred
Compensation Rules. In the discretion of the Committee, Awards granted pursuant to
Sections 7 or 8 of the Plan may be payable in Shares to the extent permitted by the
terms of the applicable Award Agreement. Installment or deferred payments may be
required by the Committee (subject to Section 10(f) of the Plan, including the
consent provisions thereof in the case of any deferral of an outstanding Award not
provided for in the original Award agreement) or permitted at the election of the
Participant on terms and conditions established by the Committee. Payments may
include, without limitation, provisions for the payment or crediting of amounts in
respect of installment or deferred payments denominated in Shares. Any deferral
shall only be allowed as is provided in a separate deferred compensation plan
adopted by the Company. The Plan shall not constitute an “employee benefit
plan” for purposes of Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended.

 

 

     3. Section 10(a) shall be deleted in its entirety and shall be replaced with the following:

     (a) Company’s Right to Terminate or Modify Awards in Certain Circumstances.
Except to the extent that an Award Agreement provides otherwise with specific
reference to this Section 10(a), in the event of (i) an acquisition of substantially
all of the assets of the Company or of a greater than 80% stock interest in the
Company by an entity in which the Company does not have a 50% or greater interest
prior to such acquisition, or (ii) a merger, consolidation, or recapitalization
involving a fundamental change in the capital structure of the Company, the Company
shall have the right to terminate any Award upon the payment of an amount equal to
the then value of the Award, without regard to vesting or forfeiture provisions of
the Award, as determined by the Committee, taking into account to the extent
determined by the Committee to be appropriate the Fair Market Value of Shares at the
time of termination and the performance of the Company up to the time of
termination; provided that no 409A Award shall be terminated and paid as described
above unless the event triggering clause (i) or (ii) of this Section 10(a) also
constitutes a “change in the ownership or effective control” or “in the ownership of
a substantial portion of the assets” of the Company within the meaning of the
Nonqualified Deferred Compensation Rules. Upon tender of the payment by the Company
to a holder of the amount determined by the Committee pursuant to the foregoing
provision, the Award held by such holder shall automatically terminate.
Alternatively, in such circumstances, the Company, in the discretion of the Board,
may make arrangements for the acquiring or surviving corporation to assume any or
all outstanding Awards and substitute on equitable terms Awards relating to the
stock or performance of such acquiring or surviving corporation; provided, that in
no event will any action so taken result in the creation of deferred compensation
within the meaning of the Nonqualified Deferred Compensation Rules. The
determinations of the Board and/or the Committee pursuant to this Section 10(a)
shall be final, binding and conclusive.

     4. The following Section 10(n) shall be added to the Plan to read as follows:

     (m) Compliance with Section 409A of the Code. This Plan is intended to comply
and shall be administered in a manner that is intended to comply with Section 409A
of the Code and shall be construed and interpreted in accordance with such intent.
Payment under this Plan shall be made in a manner that will comply with Section 409A
of the Code, including regulations or other guidance issued with respect thereto,
except as otherwise determined by the Committee. The applicable provisions of
Section 409A of the Code are hereby incorporated by reference and shall control over
any contrary provisions herein that conflict therewith.

 

 

     NOW, THEREFORE, be it further provided that, except as set forth above, the Plan shall
continue to read in its current state.

     IN WITNESS WHEREOF, the Company has caused the execution of this First Amendment by its duly
authorized officer, effective as of the Effective Date.

	 	 	 	 	 
	 	 	HOLLY CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Matthew P. Clifton
	 

	 	 	 	 
	 

	 	Name:
	 	Matthew P. Clifton
	 

	 	 	 	 
	 

	 	Title:
	 	Chief Executive Officer
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:
	 	December 31, 2008exv10w10

Exhibit 10.10

FIRST AMENDMENT

TO RESTRICTED STOCK UNIT AGREEMENT

     THIS FIRST AMENDMENT (the “First Amendment”) to Restricted Stock Unit Agreement is effective
May 11, 2006 (the “Effective Date”) and is made by and between HOLLY CORPORATION, a Delaware
corporation (the “Company”), and                      (the “Director”).

W
I T N E S S E
T H:

     WHEREAS, pursuant to that certain Restricted Stock Unit Agreement dated May 11, 2006 (the
“Agreement”), the Company granted Director an award of Restricted Stock Units;

     WHEREAS, Section 13 of the Agreement provides that the Agreement may be amended if both the
Company and the Director consent in writing; and

     WHEREAS, the Company and the Director have determined that it is desirable to amend the
Agreement, in accordance with the final regulations promulgated under section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), to ensure that, to the extent subject to Code
section 409A, the payments and other benefits provided under the Agreement comply therewith and to
avoid the imposition of any adverse tax consequences under section 409A of the Code.

     NOW, THEREFORE, the Agreement shall be amended as of the Effective Date as set forth below:

     1. Section 2 of the Agreement shall be amended in its entirety to read as follows: 2.

     2. Account

     (a) The Company shall credit to a bookkeeping account (the “Account”)
maintained by the Company for the Director’s benefit the Restricted Stock Units,
each of which shall be deemed to be the equivalent of one Share.

     (b) In the event the Company declares and pays a dividend in respect of its
outstanding Shares and, on the record date for such dividend, the Director holds
Restricted Stock Units granted pursuant to this Agreement that have not been
settled, the Company shall pay to the Director an amount in cash equal to the cash
dividends the Director would have received if the Director were the beneficial owner
(within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as
amended), as of such record date, of the number of Shares related to the portion of
the Director’s Restricted Stock Units that have not been settled as of such record
date, such payment to be made on or promptly following the date that the Company
pays such dividend; provided that in no event shall a dividend equivalent payment
provided pursuant to this Section 2(b) be made later than 30 days following the date
on which the Company pays any such dividend.

 

 

     2. The last paragraph of Section 3 of the Agreement shall be amended in its entirety

to read as follows:

For these purposes, the term “Person” shall mean an individual, corporation, association,
joint stock company, business trust or other similar organization, partnership, limited
liability company, joint venture, trust, unincorporated organization or government or
agency, instrumentality or political subdivision thereof. The term “Group” shall have the
meaning set forth in Treasury Regulation Section 1.409A-3(i)(5)(v)(B), or any successor
thereto in effect at the time a determination of whether a Change in Control has occurred is
being made. In addition, the provisions of Section 318(a) of the Code regarding the
constructive ownership of stock will apply to determine stock ownership; provided, that
stock underlying unvested options (including options exercisable for stock that is not
substantially vested) will not be treated as owned by the individual who holds the option.

     3. Section 4 of the Agreement shall be amended in its entirety to read as follows:

     4. Payment of Restricted Stock Units.

     (a) The Company shall make a lump sum payment in Shares to the Director (or, as
applicable, to the Director’s Beneficiary) equal to the number of vested Restricted
Stock Units credited to the Account, as of the earlier of: (i) in the month
following the Director’s cessation of service as a member of the Board for any
reason, (ii) within 30 days following the death of the Director, (iii) within 30
days following a Change in Control, or (iv) on the third anniversary of the Date of
Grant.

     (b) The Director may elect to change the payment event set forth in clause (iv)
of paragraph (a) of this Section 4 by written notice to the Company, on such form as
prescribed by the Committee, and, except as provided in paragraph (c) of this
Section 4, in accordance with the following requirements of Treasury Regulation
Section 1.409A-2(b)(l):

     (i) The election will not take effect for at least 12 months after the
date on which the election is made (i.e., the election must be made at least
12 months in advance of the payment date being elected);

     (ii) The new payment event must be at least five years after the

date the payment would have otherwise been made to the Director; and

     (iii) The election must be made not less than 12 months before the date
the payment is otherwise scheduled to be paid.

 

 

     (c) Upon a person becoming a Director for the first time, an election to change
the payment event set forth in clause (iv) of paragraph (a) of this Section 4 may be
made within 30 days following the Date of Grant pursuant to Treasury Regulation
Section 1.409A-2(a)(7); provided, however, that the election will not be applicable
to the portion of the Restricted Stock Units, if any, with respect to which the
3-month vesting period begins prior to the date the election is made.

     4. Section 16 of the Agreement shall be amended in its entirety to read as follows:

     16. Compliance with Section 409A of the Code. This Agreement is intended to
comply and shall be administered in a manner that is intended to comply with Section 409A of
the Code and shall be construed and interpreted in accordance with such intent. Payment
under this Agreement shall be made in a manner that will comply with Section 409A of the
Code, including regulations or other guidance issued with respect thereto, except as
otherwise determined by the Committee. The applicable provisions of Section 409A of the Code
are hereby incorporated by reference and shall control over any contrary provisions herein
that conflict therewith.

     NOW, THEREFORE, be it further provided that, except as set forth above, the Agreement shall
continue to read in its current state.

[Signature Page Follows]

 

 

     IN WITNESS WHEREOF, the Company has caused the execution hereof by its duly authorized officer
and the Director has agreed to the terms and conditions of this First Amendment, effective as of
the Effective Date.

	 	 	 	 	 
	 	 	HOLLY CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	DIRECTOR:

	 
	 	 	 	 
	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}]]