Document:

ex10_30.htm

    
      

    

    Exhibit
10.30

    EMPLOYMENT
AGREEMENT

    

    

    
This Employment Agreement (this "Agreement")
is made and entered into as of 
July
25th, 2007 (the "Effective
Date") by and between Genesis Energy, Inc., a Delaware corporation (the
"Company")
and Steve Nathanson, an individual ("Employee").

    

    
INTRODUCTION

    

    
A.           Employee
was previously employed by TDC, LLC, a Louisiana limited liability company
(“TDC”),
which was sold to Genesis Energy, L.P, a Delaware limited partnership (the
“Partnership”)
pursuant to that certain Contribution and Sale
Agreement dated April 25, 2007 (as amended or supplemented from time to time,
the “Contribution
Agreement”) by and among the Partnership,
Davison Petroleum Products, LLC, a Louisiana limited liability company,
Davison Transport, Inc., a Louisiana corporation, Transport Company, an Arkansas
corporation, Davison Terminal Service, Inc., a Louisiana corporation, Sunshine
Oil & Storage, Inc., a Louisiana corporation, T&T Chemical, Inc., an
Arkansas corporation, Fuel Masters, LLC, a Texas limited liability company, TDC,
and Red River Terminals, L.L.C., a Louisiana limited liability company (each a “Seller”, and collectively, the “Sellers”).

    

    
B.           The
Company and the Partnership desire to employ employee as President of TDC and
Employee desires to be employed in said capacity;

    

    

C.           
 Concurrently
with the execution of this Agreement, Employee has entered into a
Non-Competition Agreement with the Company (the “Non-Competition
Agreement”).  Employee wishes to
be employed under the restrictions contained in the Non-Competition
Agreement.

    

    D.           Each
party desires to set forth in writing the terms and conditions of their
understandings and agreements.

    

    
NOW, THEREFORE, in
consideration of the mutual covenants and obligations contained herein, the
sufficiency of which is hereby acknowledged by the parties hereto, the Company
hereby agrees to employ or cause one of its affiliates or subsidiaries to employ
the Employee, and Employee hereby accepts such employment, upon the terms and
conditions set forth in this Agreement:

    

    STATEMENT
OF AGREEMENT

    

    
1.      Employment and
Duties.

     

    
      (a)           The
Company agrees to employ or cause one of its affiliates or subsidiaries to
employ Employee as President of TDC.  As such, Employee shall have the
responsibilities, duties and authority reasonably accorded to Employee from time
to time by the Chief Executive Officer (“CEO”) of
TDC and reasonably expected of such position and will report directly to the CEO
of TDC or such other party as is designated from time to time by the CEO of
TDC.  Employee agrees to accept this employment upon the terms and
conditions set forth herein and, subject to Paragraph 3 hereof, agrees to devote
Employee's commercially reasonable best efforts and all of his business time and
attention to all facets of the business of the Company as directed by the
President and will faithfully and diligently conduct such duties and
responsibilities, and exercise such authority, associated with being the
President of TDC.

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
(b)           Employee
agrees, from and after Employee’s receipt of same, to adhere to, execute and
fulfill all policies established by the Company, including the Company’s Code of
Conduct, and any amendments or additions made by the Company from time to time
to such policies that are communicated to Employee.

      

      
2.      Compensation.  For
all services rendered by Employee, the Company shall compensate Employee as
follows:

      

      
(a)           Base Salary.  The
Company shall pay or shall cause one of its affiliates or subsidiaries to pay
Employee a base salary of $250,000.00 per annum (“Base
Salary”) commencing on the Effective Date and ending on the date of
termination of this Agreement.  Payment of all compensation under this
Agreement shall be made in accordance with the terms of this Agreement and
customary payroll practices of the Company or the applicable affiliate or
subsidiary, and shall be subject to all applicable withholdings and
taxes.  No less often than once per year, the Company and/or the
Partnership will review Employee's performance and may make adjustments to such
Base Salary if, in its sole discretion, any such adjustment is warranted.

      

      
(b)           Employee Perquisites, Benefits,
Annual Bonus and Other Compensation.  Employee shall be
entitled to receive additional benefits and compensation from the Company and/or
affiliates or subsidiaries of the Company in such form and to such extent as
specified below; provided, however, that nothing herein shall be deemed to
require the Company to adopt or maintain any particular plan or
policy:

       

    

    
(i)
       Participation in the Company’s health,
dental, disability, life and/or other insurance plans that the Company may have
in effect from time to time, with benefits provided to Employee under this
clause 
to be at least generally equal
to such benefits provided to similarly positioned employees of the
Company;

    

    
(ii)       Reimbursement
for all business expenses, which are reasonable and necessary and are incurred
by Employee while performing Employee’s duties under this Agreement, provided
that they are documented in reasonable detail by Employee and accompanied by
expense statements, receipts and/or vouchers, or such other information and
documentation as the Company may reasonably require to substantiate such
expense.

    

    
(iii)       Effective
January 1, 2008, Employee’s bonus payments will be based on individual, TDC,
Company and/or
Partnership performance (with a 100% target) and are at the discretion of the
management of the Company.  2007 bonus programs and payments from TDC
prior to the Effective Date are the responsibility of the
Sellers.  After the Effective Date, 2007 bonus program will be
structured similar to, and no less favorable than, that of Sellers’ 2007
pre-Effective Date bonus program.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

(iv)        Effective
January 1, 2008, the Company shall provide or cause to be provided the Employee
with other employee perquisites as may be available to or deemed appropriate for
Employee by the Company.
   In any event, the Employee shall be entitled
to participate on the same terms as any similarly positioned employees of the
Company in any profit sharing and retirement savings plan maintained by the
Company that is qualified under Section 401(a) of the Internal Revenue Code and
any non-qualified executive compensation program maintained by the
Company.

     

    
(v)       Employee will be enrolled in the Company’s vacation plan
effective January 1, 2008 (Sellers’ 2007 vacation plan allowances are
unaffected).  Pursuant to the
Company’s plan, for the calendar year 2008, Employee shall be entitled to accrue
and take as accrued 15 days of paid vacation.  Employee’s years of
service with Sellers were and will be included in calculating vacation
entitlements.

    

    (vi)       Employee
will be eligible for the Company’s/Partnership’s proposed Long Term Incentive
Plan currently under consideration by the board of directors of the
Company.  If such program is approved (as proposed), Employee will
receive promptly after such approval a one time grant of a number of restricted
common units of the Partnership equal to the quotient
derived by dividing (A) the Employee’s initial annual Base Salary by (B) the
closing price for common units of the Partnership on the Partnership’s primary
trading exchange on the option grant date.  Such restricted units
shall, at the Company’s option, vest either in three equal
annual tranches commencing on the first anniversary of the grant date or in four equal
annual tranches commencing 10 days from the effective date of this agreement and
shall be subject to the other terms and conditions provided in the program and
the related grant letter.    If the proposed Restricted Unit
Program is not approved by the board of directors of the Company, the Company or
the Partnership will provide Employee with other compensation equal (as
determined in the sole discretion of the Company) to the benefit that would have
been derived from the proposed Long Term Incentive Plan.

    

    (vii)       COMPANY
AUTOMOBILE. In line with
company policy, Company will provide the Employee the use of a company
provided.  Associated costs to operate the automobile including fuel,
repairs, and insurance will be provided by the Company or reimbursed to the
Employee when appropriate documentation is provided.

    

    
      
3.  Term; Termination; Rights on
Termination.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
(a)         The
term of this Agreement shall begin on the Effective Date and continue for three
(3) years (the
"Initial
Term"),
unless terminated sooner as provided herein.  This Agreement shall
automatically renew for successive one (1) year terms, on the same terms and
conditions as in effect as of the time of renewal, unless either party gives
written notice of the party’s intent not to renew this Agreement at least 90
days prior to the
expiration of the then-current term.  This Agreement and Employee's
employment may be terminated in any of the following ways:

    

    
(i)             Death.  This
Agreement will terminate automatically upon Employee’s death.

    

    
(ii)             Disability.  If, as
a result of physical or mental illness or injury, Employee shall have been
unable to perform the Employee’s duties hereunder, with or without reasonable
accommodation, for 180 consecutive days, then thirty (30) days after receiving
written notice (which notice may occur before or after the end of such 
six (6) month period, but which
shall not be effective earlier than the last day of such 
six (6) month period), the Company may
terminate Employee's employment hereunder, provided Employee is unable to resume
full-time duties with or without reasonable accommodation at the conclusion of
such notice period.  Also, Employee may terminate Employee's
employment hereunder if Employee's health should become impaired to an extent
that makes the continued performance of Employee's duties hereunder hazardous to
Employee's physical or mental health or life, provided that Employee shall have
furnished the Company with a written statement from a qualified doctor to such
effect and provided, further, that, at the Company's request made within thirty
(30) days of the date of such written statement, Employee shall submit to an
examination, at the Company’s expense, by a doctor selected by the Company who
is reasonably acceptable to Employee or Employee's doctor.

    

    
(iii)            Termination by the Company for
Cause.  The Company may terminate the Agreement immediately for
Good Cause
 , which shall be: (1)
Employee’s commission of theft, embezzlement, forgery, any other act of
dishonesty relating to Employee’s employment with the Company and/or any
affiliate or subsidiary of the Company, or any violation of Company policies
(including the Company’s ethics policies (including any sexual harassment
policies) or Code of Conduct), or any law, rule, or regulation applicable to the
Company, the Partnership or TDC or any failure by Executive to inform the
Company of any violation of any law, rule or regulation by the Company or one of
its direct or indirect subsidiaries of which Executive has knowledge; (2)
Employee’s conviction of, or pleading guilty or nolo contendere to, a felony or
any lesser crime having as its predicate element fraud, dishonesty, or
misappropriation; (3) Employee’s failure to perform Employee’s duties and
obligations under this Agreement (other than during any period of disability)
which failure to perform is not remedied within thirty (30) days after notice
thereof to Employee by the Company or Employee’s failure to perform Employee’s
duties and obligations under the Non-Competition Agreement; or (4) Employee’s
commission of an act or acts in the performance or intentional non-performance
of Employee’s duties under this Agreement amounting to gross negligence or
willful misconduct (“Cause”).  In
the event of a termination for Good Cause, Employee shall have no right to any
severance compensation.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
(iv)             Termination by Either Party
Without
Cause.  At any time after the commencement of employment, the
Company or Employee may, without Cause,
terminate this Agreement and Employee's employment, effective thirty (30) days
after written notice is provided to the other party (“Without
Cause”).

    

    (v)             Termination by Employee for Good
Reason: Employee may terminate this Agreement for Good Reason, after
providing thirty (30) days written notice to the Company, which identifies the
Good Reason for Employee’s termination.  “Good
Reason” means any of the following reasons: (1) following a Change of
Control which results in a substantial diminution of Employee’s duties and
responsibilities or a material reduction of compensation or benefits; (2)
Employee’s removal from Employee’s position as President of TDC, during the term of this
Agreement (other than if Employee is offered an Equivalent Position, if Employee
is removed for Cause or by death or disability, as set forth in this Agreement);
or (3) the Company’s failure to make any payment to Employee required to be made
under the terms of this Agreement, if the breach is not cured within thirty (30)
days after Employee provides written notice to the Company that identifies in
reasonable detail the nature of the payment.  As used herein, “Change of
Control” means any (i) sale of capital stock of the Company or
partnership interests of the Partnership or substantially all of the assets of
the Company or the Partnership, (ii) merger, conversion or consolidation of the
Company or the Partnership,  or (iii) other event, that, in the case
of (i), (ii) or (iii), results in any person or entity (or other persons or
entities acting in concert) having the ability to elect a majority of the
members of the board of directors of the Company; provided, however, that any
such event described in (i)-(iii) above shall not constitute a Change of Control
if the relevant persons or entities in “control” are Denbury Resources, Inc.,
one or more executive officers of the Company and/or any affiliates of the
foregoing.  “Equivalent
Position” means a position with the Company or an affiliate of the
Company with equivalent compensation and at the same work location.

    

    
(b)           Effect of
Termination.

    

    (i)           Upon
termination of this Agreement for any reason
 , Employee shall be entitled to receive
all compensation earned and all benefits and reimbursements due through the
effective date 
of
termination.  Additional compensation subsequent to termination, if
any, will be due and payable to Employee only to the extent and in the manner
expressly provided herein.

    

    (ii)           If
this Agreement is terminated by the Company Without Cause during the Initial
Term, Employee shall receive the greater of one (1) year of Base Salary or the
balance of the Base Salary due Employee for the remainder of the Term, to be
paid on a monthly basis in accordance with applicable Company policies, and
COBRA benefits for the total number of months remaining in the Term of the
Agreement, but in no event will the total number of months be less than twelve
months or more than 18 months.  COBRA benefits will be payable by the
Company, so long as Employee elects and is eligible for said
benefits.  At the discretion of the management of the Company,
Employee will also be eligible to receive his pro rata share of Employee’s
annual bonus.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (iii)           If
the Agreement is terminated by Employee Without Cause during the Initial Term, all rights and
obligations of the Company and Employee under this Agreement shall cease as of
the effective date of termination, except that the Company's obligations under
Sections 3(b)(i) and 5 herein and Employee's obligations under Sections 4 and 6
herein and in the Non-Competition Agreement shall survive such termination in
accordance with their terms unless otherwise provided herein.

    

    (iv)           If
the Agreement is terminated by Employee for Good Reason, the Company shall pay
Employee in the same manner as provided in Sections 3(b)(i) and 3(b)(ii) above
as if the Company had terminated Employee Without Cause.

    

    

4.       Return of Company
Property.  All records, designs, patents, business plans,
financial statements, manuals, memoranda, lists and any other property delivered
to, created by or compiled by Employee, by or on behalf of the Company, by
Company's affiliates or their representatives, vendors or customers which
pertain to the business of the Company or its affiliates shall be and remain the
property of the Company or its affiliates, as the case may be, and be subject at
all times to the Company’s discretion and control.  Likewise, all
correspondence, reports, records, charts, advertising materials and other
similar data and documents pertaining to the business, customers, activities or
future plans of the Company or its affiliates which is in the Employee’s
possession, custody or control, whether prepared by the Employee or others,
shall be delivered promptly to the Company (within 24 hours) without request by
the Company upon termination of Employee's employment.

    

    

5.       Indemnification.  In the
event Employee 
would incur any expense or liability in connection
with
  any threatened, pending
 ,
contemplated 
or completed 
action, suit or proceeding, whether civil, criminal, administrative or
investigative (other than an action by the Company or its affiliates against
Employee) (“Proceeding”),

any appeal to such a Proceeding, any inquiry or
investigation that could lead to a Proceeding, 
by reason of the fact that Employee is or
was performing services under this Agreement
 or by reason of the fact that Employee is
an officer of the Company
 , then the
Company shall indemnify Employee against all expenses (including reasonable
attorneys' fees
 and costs
 ), judgments, fines, and amounts paid in
settlement, as actually and reasonably incurred by Employee in connection
therewith.  In the event that both Employee and the Company are made a
party to the same third-party action, complaint, suit or Proceeding, the Company
agrees to engage counsel, and Employee agrees to use the same counsel, provided
that if counsel selected by the Company shall have a conflict of interest that
prevents such counsel from representing Employee, Employee may engage separate
counsel and the Company shall pay all reasonable attorneys' fees of such
separate counsel.  The Company shall not be required to pay the fees
of more than one law firm except as described in the preceding sentence and
shall not be required to pay the fees of more than two law firms under any
circumstances.  Further, while Employee is expected at all times to
use Employee's best efforts to faithfully discharge Employee's duties under this
Agreement, Employee cannot be held liable to the Company for errors or omissions
made in good faith, and Employee will be indemnified as described above, except
where Employee has exhibited gross, willful and wanton negligence and misconduct
or performed criminal and fraudulent acts which materially damage the business
of the Company. The indemnification provided under this Section 5 is
non-exclusive and shall in no way limit any indemnification provided by
applicable law or any indemnification provision of the Company’s, the
Partnership’s or TDC’s charter or organizational documents.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
6.       No Prior
Agreements.  Employee represents and warrants that to
Employee’s knowledge Employee has no obligations, legal, in contract, or
otherwise, inconsistent with the terms of this Agreement or with Employee’s
undertaking employment with the Company to perform the duties described
herein.  Employee will not disclose to the Company, or use, or induce
the Company to use, any confidential, proprietary, or trade secret information
of others. Employee represents and warrants that to Employee’s knowledge
Employee has returned all property and confidential information belonging to all
prior employers, if Employee is obligated to do so.  Employee agrees
to indemnify the Company for any Proceeding, including, but not limited to, all
expenses (including reasonable attorneys' fees and costs), judgments, fines, and
amounts paid in settlement, as actually and reasonably incurred by the Company
in connection therewith, including any investigation of the same, by any such
third party that such third party may now have or may hereafter come to have
against the Company based upon or arising out of any non-competition agreement,
invention or confidential information, trade secret or secrecy agreement or like
agreement between Employee and such third party which was in existence as of the
date of this Agreement.

    

    7.       Entire Agreement.
This agreement constitutes the entire agreement between the parties and
supersedes any prior understandings, agreement or representations by or between
the parties (other than those contained in any confidentiality agreement between
Employee and the Company or one of its affiliates, dated as of the date hereof
or the Non-Competition Agreement), written or oral, to the extent they have
related in any way to the subject matter hereof.

    

    
8.       Assignment; Binding
Effect.  Employee understands that Employee has been selected
for employment by the Company on the basis of Employee's personal
qualifications, experience and skills.  Employee agrees, therefore,
that Employee cannot assign all or any portion of Employee's performance under
this Agreement.  Subject to the foregoing, this Agreement shall be
binding upon, inure to the benefit of and be enforceable by the parties hereto
and their respective heirs, legal representatives, successors and
assigns.

    

    

9. 
     Notice.  All
notices, requests, demands, claims and other communications hereunder shall be
in writing. Any notice, request, demand, claim or other communication hereunder
shall be deemed duly given two (2) business days after it is sent by registered
or certified mail, return receipt requested, postage prepaid and addressed to
the intended recipient as set forth below:

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              To
      The Company:

            	
              Genesis
      Energy, Inc.

            

    

    
      	
               
      

            	
              Attn:
      President & Chief Operating
Officer

            

    

    
      	
               
      

            	
              500
      Dallas, Suite 2500

            

    

    
      	
               
      

            	
              Houston,
      TX 77002

            

    

    
      	
               
      

            	
              Telephone:

            	
              (713)
      860-2500

            

    

    
      	
               
      

            	
              Fax:

            	
              (713)
      860-2636

            

    

     

    (with a
copy, which shall not constitute notice, to:)

    

    
      	
               
      

            	
              Akin
      Gump Strauss Hauer & Feld LLP

            

    

    
      	
               
      

            	
              1111
      Louisiana Street, 44th
      Floor

            

    

    
      	
               
      

            	
              Attn:  J.
      Vincent Kendrick

            

    

    
      	
               
      

            	 	
              Houston,
      TX 77002

            

    

    
      	
               
      

            	 	
              Telephone:

            	
              (713)
      220-5839

            

    

    
      	
               
      

            	 	
              Fax:

            	
              (713)
      236-0822

            

    

    

    
      	
               
      

            	
              To
      Employee:

            	
              Steve
      Nathanson

            

    

    
      	
               
      

            	
              3731
      Goodwood Avenue

            

    

    
      	
               
      

            	
              Baton
      Rouge, LA  70806

            

    

    

    (with a
copy, which shall not constitute notice, to:)

    

    
      	
               
      

            	
              deGravelles,
      Palmintier, Holthaus & Fruge,
LLLP

            

    

    
      	
               
      

            	
              618
      Main Street

            

    

    
      	
               
      

            	
              Attn:
      C. Frank Holthaus

            

    

    
      	
               
      

            	
              Baton
      Rouge, LA 70801-1910

            

    

    
      	
               
      

            	
              Telephone
      (225) 344-3735

            

    

    

    Any party
to this Agreement may send any notice, request, demand, claim or other
communication hereunder to the intended recipient at the addresses set forth
above using any other means (including personal delivery, expedited courier,
messenger service, telecopy, ordinary mail or electronic mail), but no such
notice, request, demand, claim or other communication shall be deemed to have
been duly given unless and until it actually is received by the intended
recipient.  Any party may change the address to which notices,
requests, demands, claims and other communications hereunder are to be delivered
by giving the other party notice in the manner herein set forth.
 

    
      
         

      

      
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    10.             Severability;
Headings.  Any term or provision of this Agreement that is
invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or
the validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction.

    

    
      
11.    Governing
Law.

    

    

    (a)             THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF TEXAS without giving effect to any choice or conflict of law provision
or rule (whether of the State of TEXAS or any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the State of
TEXAS
 .

    

    (b)             EACH
PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY CONSENTS TO SUBMIT TO THE
JURISDICTION OF THE COMPETENT COURTS OF THE STATE OF TEXAS AND OF THE UNITED
STATES OF AMERICA, IN EACH CASE LOCATED IN HOUSTON, TEXAS (THE “COURTS”)
FOR ANY LITIGATION ARISING OUT OF OR RELATING TO THIS AGREEMENT (AND AGREES NOT
TO COMMENCE ANY LITIGATION RELATING THERETO EXCEPT IN THE COURTS), WAIVES ANY
OBJECTION TO THE LAYING OF VENUE OF ANY SUCH LITIGATION IN THE COURTS AND AGREES
NOT TO PLEAD OR CLAIM IN ANY COURT THAT SUCH LITIGATION BROUGHT THEREIN HAS BEEN
BROUGHT IN AN INCONVENIENT FORUM.

    

    

(c)             Each
Party hereby irrevocably consents to the service of process of any of the
aforementioned courts in any such suit, action or proceeding by the mailing of
copies thereof by registered or certified mail, postage prepaid, to such Party
at the address of such Party set forth in or designated pursuant to Paragraph 9
or by any other means permitted by the laws of the State of Texas.

    

    
12.             Counterparts.  This
Agreement may be executed in counterparts, each of which shall be deemed an
original but which together shall constitute one and the same
instrument.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    13.             Construction.  Any
reference to any federal, state, local, or foreign statute or Law shall be
deemed also to refer to all rules and regulations promulgated thereunder, unless
the context requires otherwise.  The word “including” shall mean
including without limitation. All personal pronouns used in this Agreement,
whether used in the masculine, feminine or neuter gender, shall include all
other genders; the singular shall include the plural, and vice versa. All
references herein to Exhibits, Paragraphs or subdivisions thereof shall refer to
the corresponding Exhibits, Paragraphs or subdivision thereof of this Agreement
unless specific reference is made to such exhibits, paragraphs or subdivisions
of another document or instrument. The terms “herein,” “hereby,” “hereunder,”
“hereof,” “hereinafter,” and other equivalent words refer to this Agreement in
its entirety and not solely to the particular portion of the Agreement in which
such word is used.  The words “shall” and “will” are used
interchangeably throughout this Agreement and shall accordingly be given the
same means, regardless of which word is used.  References to a party
include its permitted successors and assigns.

    

    [Signature Page
Follows]

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the day and year first above
written.

    

    
      	 
      	
              COMPANY:

            	 
      
	 
      	 
      	 
      
	 
      	
              Genesis
      Energy, Inc.

            	 
	 
      	
              By:  /s/ Joseph A. Blount,
      Jr.

            	 
      
	 
      	
              Name:   Joseph A. Blount,
      Jr.

            	 
      
	 
      	
              Title:
      President

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              EMPLOYEE:

            	 
      
	 
      	 
      	 
      
	 
      	
              /s/  Steve
    Nathanson

            	 
      
	 
      	
              Steve
      Nathanson, an individual

            	 
      

    

    

    
    

    11ex10_45.htm

    
      
        

      
Exhibit 10.45

      RESTRICTED
UNIT AGREEMENT

       

      This RESTRICTED UNIT AGREEMENT
(this “Agreement”)
is made as of February 5, 2010 (the “Effective
Date”), between GENESIS
ENERGY, LLC, a Delaware limited liability company (the “Company”),
and Steve Nathanson, (the “Principal”).  Capitalized
terms used in this Agreement but not defined in the body hereof are defined in
Exhibit
A.

       

      WHEREAS, the Amended and
Restated Limited Liability Company Agreement of the Company (as amended from
time to time, the “LLC
Agreement”) authorizes the issuance by the Company of Series B-1 Units;
and

       

      WHEREAS, the Company desires
to issue to the Principal on the terms and conditions hereinafter set forth, and
the Principal desires to accept on such terms and conditions, the number of
Series B-1 Units specified herein.

       

      NOW, THEREFORE, in
consideration of the mutual promises, covenants and obligations contained herein
and other good and valuable consideration, the Company and the Principal agree
as follows:

       

      
        1.   Issuance of
Units.  The
Company hereby issues 200 Series B-1 Units (the “Series B-1
Units”) to the Principal which shall vest in accordance with the
provisions of Section
4 below.  The Threshold Value for each Series B-1 Unit shall be
equal to zero.  The Series B-1 Units are intended to constitute
“profits interests” within the meaning of Revenue Procedures 93-27 and
2001-43.

      

       

      2.           Terms of
Issuance.

       

      (a)           As
an inducement to the Company to enter into this Agreement, concurrently with the
execution and delivery of this Agreement, the Principal is entering into a
Waiver Agreement, under which the Principal is accepting as consideration the
grant of Series B-1 Units issued hereunder and agreeing to enter
into an amended and restated employment agreement (the “Employment
Agreement”) with the Company, subject to the Company’s compensation
committee’s approval, and if necessary, the Board’s approval, of the terms of
such Employment Agreement.

       

      (b)           The
Principal acknowledges and agrees that no provision contained in this Agreement
shall entitle the Principal to remain in the employment of the
Company.

       

      (c)           The
Principal acknowledges and agrees that, except as provided in the LLC Agreement,
the Company has no duty or obligation to disclose to the Principal, and the
Principal shall have no right to be advised of, any information regarding the
Company in connection with the forfeiture or redemption of the Series B-1 Units
pursuant to the terms and conditions of this Agreement.

       

      (d)           The
Principal acknowledges and agrees that the Series B-1 Units are a designated
series of the Series B Units authorized and issued pursuant to the LLC Agreement
and subject to all of the restrictions applicable to Series B-1 Units as set
forth in the LLC Agreement and in this Agreement.

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      3.           Unvested Series B-1
Units.  Except
as provided in Section
4 below, all Series B-1 Units shall initially be deemed “Unvested Series
B-1 Units” under the LLC Agreement (“Unvested
Units”), shall be subject to all of the restrictions on Series B-1 Units
contained in the LLC Agreement and, to the extent the LLC Agreement
distinguishes between Vested Series B-1 Units and Unvested Series B-1 Units,
shall carry only such rights as are conferred on Unvested Series B-1 Units under
the LLC Agreement.

       

      4.           Vesting of Series B-1
Units.

       

      (a)           Subject
to Section
4(g), if the Principal is, and has been, continuously employed by the
Company from the date of this Agreement through the first anniversary date of
the Effective Date, then on such anniversary date twenty-five percent (25%) of
the Series B-1 Units will be “Vested Series B
Units” under the LLC Agreement (“Vested
Units”).  Vested Units shall no longer be deemed Unvested
Series B-1 Units, shall no longer be subject to the restrictions on Unvested
Series B Units (but shall remain subject to the restrictions on the Series B
Units in general) under the LLC Agreement and, to the extent the LLC Agreement
distinguishes between Vested Series B-1 Units and Unvested Series B-1 Units,
shall carry all of the rights conferred on Vested Series B-1 Units under the LLC
Agreement.

       

      (b)           Subject
to Section
4(g), if Principal is, and has been, continuously employed by the Company
from the date of this Agreement through the second anniversary date of the
Effective Date, then on such anniversary date thirty-three and one-third percent
(33 1/3%) of the remaining Unvested Units will become Vested Units (which, for
the sake of clarity, will constitute one-fourth of the total number of original
Series B-1 Units).

       

      (c)           Subject
to Section
4(g), if Principal is, and has been, continuously employed by the Company
from the date of this Agreement through the third anniversary date of the
Effective Date, then on such anniversary date fifty percent (50%) of the
remaining Unvested Units will become Vested Units (which, for the sake of
clarity, will constitute one-fourth of the total number of original Series B-1
Units).

       

      (d)           Subject
to Section
4(g), if Principal is, and has been, continuously employed by the Company
from the date of this Agreement through the fourth anniversary date of the
Effective Date, then on such anniversary date the remaining Unvested Units will
become Vested Units.

       

      (e)           Following
consummation by the Company of a Qualified Public Offering, all shares of common
stock of the IPO corporate issuer issued in respect of any Unvested Units issued
pursuant hereto shall continue to be subject to vesting in accordance with Section 4(a) through
Section 4(d)
hereto.

       

      (f)           In
the event of the consummation of a sale or business combination that results in
a Change of Control or upon the occurrence of a Sale of the Business, all Series
B-1 Units that shall not have previously become Vested Units shall become Vested
Units as of the consummation of such Change of Control or Sale of the Business;
provided, that the
Principal has been continuously employed by the Company from the date of this
Agreement until the consummation of such Change of Control or Sale of the
Business.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      (g)           Notwithstanding
the foregoing Sections
4(a)-(d); if Principal’s employment with the Company is terminated as a
result of death or Disability at any time prior to an anniversary of the
Effective Date, the percentage of the Unvested Units that would have vested but
for the Principal’s death or Disability on such anniversary date of the
Effective Date will become Vested Units on such date of death or Disability, and
the remaining Unvested Units shall be forfeited, for no consideration, as
provided in Section
5(b)(i).

       

      5.           Forfeiture of and Right to
Purchase Series B-1 Units.

       

      (a)           If
the Principal’s employment with the Company is terminated by the Company for
Cause or the Principal terminates his employment with the Company without Good
Reason, then the Principal, and any other Person who shall be the holder of any
of the Series B-1 Units on the date of such termination or resignation, shall
forfeit to the Company all of such Series B-1 Units (including any Vested Units
and any Unvested Units) and all rights arising from such Units, and no
consideration shall be paid in respect of such Units.

       

      (b)           If
the Principal’s employment with the Company is terminated without Cause, by
reason of the Principal’s death or Disability or by the Principal for Good
Reason, then:

       

      (i)           subject
to Section
4(g), the Principal, and any other Person who shall be the holder of any
of the Series B-1 Units on the date of such termination or resignation, shall
forfeit to the Company all of the Unvested Units and all rights arising from
such Unvested Units and no consideration shall be paid in respect of such
Units;

       

      (ii)           the
Company shall have the right to redeem, in accordance with Section 6 below, any
or all of the Principal’s Vested Units at a redemption price equal to the Fair
Market Value of such Units;

       

      (c)           The
forfeitures of Units subject to the terms and conditions of this Section 5 shall
occur immediately and without further action of the Company except with respect
to death or Disability as provided below, the Principal or any other Person upon
the termination, resignation, death, Disability or breach giving rise thereto
(the date of such termination, resignation, death, Disability or breach being
the “Trigger
Date”).  The Company’s right to redeem or purchase Vested Units
pursuant to Section
5 shall apply to all Units, whether then held by the Principal or any
other Person to whom the Principal may have transferred such Units in accordance
with the LLC Agreement.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      6.           Procedure for
Redemption/Purchase of Vested Units.

       

      (a)           Within
ninety days of the Trigger Date, the Board shall provide the Principal, the
Principal’s legal representative or guardian, or the executor of the Principal’s
estate (as applicable, the “Representative”),
with written notice of its determination of the fair market value, as of the
date of termination, of the Vested Units that are subject to redemption under
Section 5 (the
“Purchase
Price”), together with a non-binding estimate of the number of Vested
Units that the Company anticipates it will redeem and a worksheet showing in
reasonable detail its determination of the Purchase Price.  In each
case, “fair market value” shall equal the amount that would be distributed with
respect to such Vested Units if the assets of the Company were sold for their
Fair Market Value as of such date of termination and there was a hypothetical
complete liquidation of the Company and the proceeds were distributed, after
payment or other satisfaction of all liabilities and other obligations of the
Company, by the Company pursuant to Section 6.1 of the LLC
Agreement.  The Representative shall have the right to dispute in
writing the Board’s determination of the Purchase Price within thirty days
following receipt of the Board’s determination (the “Notice
Period”).  If the Company has not received written notice of
such a dispute within the Notice Period, the Purchase Price as determined by the
Board shall be deemed to be the final Purchase Price.  If the Company
has received written notice of such a dispute within the Notice Period, then the
Company and the Representative shall, for an additional thirty days following
receipt of such written notice of dispute (such additional thirty-day period,
the “Resolution
Period”), attempt to reach agreement on the Purchase Price.  If
no resolution of this dispute is finalized within the Resolution Period, the
Board’s determination of the Purchase Price shall be submitted for review and
final determination by an independent valuation firm (the “Independent
Valuation Firm”) selected by the Board.  The Independent
Valuation Firm shall review all relevant data, including any necessary books and
records of the Company, to determine the changes to the Purchase Price
calculation, if any, necessary to resolve only the disputed items or
amounts.  The determination by the Independent Valuation Firm shall be
made as promptly as practical, but in no event beyond thirty days from its
engagement, and shall be final and binding.  If the final Purchase
Price as determined by the Independent Valuation Firm is ten percent or more
lower than the Purchase Price as determined by the Board, the costs of the
Independent Valuation Firm shall be borne by the Representative.  If
the final Purchase Price as determined by the Independent Valuation Firm is ten
percent or more higher than the Purchase Price as determined by the Board, the
costs of the Independent Valuation Firm shall be borne by the
Company.  If the final Purchase Price as determined by the Independent
Valuation Firm is any other amount, the costs of the Independent Valuation Firm
shall be borne fifty percent by the Company and fifty percent by the
Representative.

       

      (b)           Following
the final determination of the Purchase Price as provided above, the Company
shall give written notice to the Representative of the number of Vested Units
that are subject to redemption pursuant to Section 5 (the “Subject
Units”), and the final Purchase Price.  The date that such
notice is received by the Representative shall constitute the “Purchase Notice
Date.”

       

      (c)           In
the event the Company elects to redeem any or all of the Subject Units pursuant
to Section
5(b)(ii), the Company shall set a reasonable place and time for the
closing of the redemption of such Subject Units, which shall be not less than
fifteen days nor more than forty-five days after the Purchase Notice
Date.

       

      (d)           Any
payment of the Purchase Price for any Subject Units by the Company shall be made
in the form of cash or a Company check, payable to the Representative; provided, however, that any
such payment by the Company may be made, at the option of the Board, in the form
of an unsecured promissory note issued by the Company to the Representative with
a term of two (2) years, interest accruing at a rate of eight percent (8.0%) per
annum, compounded annually, with quarterly principal payments and interest due
and payable quarterly in arrears.  Any such note shall contain
restrictions on the holder’s ability to pledge, borrow against or collateralize
such note and shall contain customary subordination provisions for the benefit
of the Company’s lenders.  Upon payment of such Purchase Price by the
Company (or issuance of the promissory note described in this Section 6(d)), such
Subject Units shall automatically be cancelled without further action by the
Company, the Principal or any other Person.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      (e)           The
Representative shall execute and deliver all documentation and agreements
reasonably requested by the Company to reflect a purchase/redemption of the
Subject Units pursuant to this Agreement, but neither the failure of the
Representative to execute or deliver any such documentation, nor the failure of
the Representative to deposit the Company’s check, shall affect the validity of
a purchase/redemption of the Subject Units pursuant to this
Agreement.

       

      (f)           In
connection with any purchase/redemption of the Subject Units hereunder, the
Representative shall not be required to make any representations, warranties or
indemnities, other than customary representations, warranties and indemnities
concerning a) the Representative’s valid ownership of the Subject Units, free of
all liens and encumbrances (excluding those arising under applicable securities
laws and any arising under the LLC Agreement), b) the Representative’s
authority, power and right to enter into and consummate the sale of any Subject
Units without violating any other agreement to which the Representative is a
party or by which his assets are bound, and c) compliance with applicable
laws.

       

      7.           Representations and
Warranties of the Principal.  The
Principal represents and warrants to the Company as follows:

       

      (a)           All
of the representations and warranties made by the Principal pursuant to Article
IV of the LLC Agreement are true and correct as of the date hereof.

       

      (b)           This
Agreement constitutes the legal, valid and binding obligation of the Principal,
enforceable in accordance with its terms, and the execution, delivery and
performance of this Agreement by the Principal does not and will not conflict
with, violate or cause a breach of any agreement, contract or instrument to
which the Principal is a party or any judgment, order or decree to which the
Principal is subject.

       

      (c)           The
Principal believes that he has received all the information he considers
necessary in connection with his execution of this Agreement, and the Principal
has had an opportunity to ask questions and receive answers from the Company and
from counsel regarding the terms, conditions and limitations set forth in this
Agreement and the business, properties, prospects and financial condition of the
Company and its subsidiaries and to obtain additional information (to the extent
the Company possessed such information or could acquire it without unreasonable
effort or expense) necessary to verify the accuracy of any information furnished
to the Principal or to which the Principal had access.

       

      8.           Withholding; 83(b)
Election.  To
the extent that the receipt of the Series B-1 Units, the vesting of the Series
B-1 Units, or the execution of this Agreement results in compensation income or
wages from the Company to the Principal for federal, state or local tax
purposes, the Principal shall deliver to the Company at the time of such
receipt, lapse or execution, as the case may be, such amount of money as the
Company may require to meet its minimum obligation under applicable tax laws or
regulations, and if the Principal fails to do so, the Company is authorized to
withhold from any cash or Unit remuneration (including withholding any Vested
Units distributable to the Principal under this Agreement) then or thereafter
payable to the Principal any tax required to be withheld by reason of such
resulting compensation income or wages.  Within thirty (30) days after
the date of the issuance of the Series B-1 Units, the Principal shall make an
election authorized by section 83(b) of the Code with respect to the Series B-1
Units and the Principal shall submit to the Company a copy of the statement
filed by the Principal to make such election.  The form of such
election shall be in the form attached as Exhibit
B.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      9.           General
Provisions.

       

      (a)           Notices. For purposes of this
Agreement, notices and all other communications provided for herein shall be in
writing and shall be personally delivered, mailed by certified mail, return
receipt requested, or delivered by nationally recognized overnight delivery
service with proof of receipt maintained, at the following addresses (or any
other address that any party may designate by written notice to the other party,
in accordance herewith, except that such notice shall be effective only upon
receipt):

       

      
        	
                 
      

              	
                If
      to the Company to:

              	
                GENESIS
      ENERGY, LLC

              

      

      
        	
                 
      

              	
                919
      Milam, Suite 2100

              

      

      
        	
                 
      

              	
                Houston,
      Texas 77002

              

      

      
        	
                 
      

              	
                Attention:  Grant
      Sims

              

      

       

      
        	
                 
      

              	
                with
      a copy to:

              	
                Andrews
      Kurth LLP

              

      

      
        	
                 
      

              	
                600
      Travis Street, Suite 4200

              

      

      
        	
                 
      

              	
                Houston,
      Texas  77002

              

      

      
        	
                 
      

              	
                Attention:  G.
      Michael O’Leary

              

      

       

      
        	
                 
      

              	
                If
      to the Principal to:

              	
                Steve
      Nathanson

              

      

      
        	
                 
      

              	
                3731
      Goodwood Ave.

              

      

      
        	
                 
      

              	
                Baton
      Rouge, Louisiana 70806

              

      

       

      Any such
notice shall be effective (i) if delivered personally, upon receipt thereof by
the recipient; (ii) if delivered by nationally recognized overnight delivery
service, on the first business day after being sent or (iii) if delivered by
certified mail, upon the earlier of actual receipt thereof by the recipient or
five business days after the date of deposit in the United States
mail.

       

      (b)           Governing Law. THIS AGREEMENT
IS GOVERNED BY AND SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF DELAWARE, WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES OF SUCH
STATE.

       

      (c)           Consent to
Jurisdiction.

       

      (i)           The
parties hereto hereby irrevocably submit to the exclusive jurisdiction of the
courts of the State of Texas and the federal courts of the United States of
America located in Harris County, Texas, and appropriate appellate courts
therefrom, over any dispute arising out of or relating to this Agreement or any
of the transactions contemplated hereby, and each party hereby irrevocably
agrees that all claims in respect of such dispute or proceeding may be heard and
determined in such courts.  The parties hereby irrevocably waive, to
the fullest extent permitted by applicable Law, any objection which they may now
or hereafter have to the laying of venue of any dispute arising out of or
relating to this Agreement or any of the transactions contemplated hereby
brought in such court or any defense of inconvenient forum for the maintenance
of such dispute.  Each of the parties hereto agrees that a judgment in
any such dispute may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by Law.  This consent to jurisdiction
is being given solely for purposes of this Agreement and is not intended to, and
shall not, confer consent to jurisdiction with respect to any other dispute in
which a party to this Agreement may become involved.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      (ii)           Each
of the parties hereto hereby consents to process being served by any party to
this Agreement in any suit, action, or proceeding of the nature specified in
subsection (i) above by the mailing of a copy thereof in the manner specified by
the provisions of Section
9(a).

       

      (iii)           EACH
OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN
ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS
AGREEMENT.

       

      (d)           Amendment and Waiver. The
provisions of this Agreement may be amended, modified or waived only with the
prior written consent of the Company and the Principal, and no course of conduct
or failure or delay in enforcing the provisions of this Agreement shall be
construed as a waiver of such provisions or affect the validity, binding effect
or enforceability of this Agreement or any provision hereof.

       

      (e)           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.

       

      (f)           Entire
Agreement.  This Agreement and the LLC Agreement embody the
complete agreement and understanding among the parties hereto with respect to
the subject matter hereof and supersede and preempt any prior understandings,
agreements or representations by or among the parties, written or oral, which
may have related to the subject matter hereof in any way.

       

      (g)           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 shall constitute one and the
same Agreement.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      (h)           Headings.  The
paragraph headings have been inserted for purposes of convenience and shall not
be used for interpretive purposes.

       

      (i)
           Gender and
Plurals.  Whenever the context may require, any pronouns used
herein shall include the corresponding masculine, feminine or neuter forms, and
the singular form of nouns and pronouns shall include the plural and vice
versa.

       

      (j)           Successors and
Assigns.  Except as otherwise provided herein, this Agreement
shall bind and inure to the benefit of and be enforceable by and against the
Principal, the Company and their respective successors, assigns, heirs,
representative and estate, as the case may be (including subsequent holders of
Series B-1 Units); provided, that the rights and
obligations of the Principal under this Agreement shall not be assignable except
in connection with a transfer of the Series B-1 Units permitted under the LLC
Agreement.  Notwithstanding anything else in this Agreement or in the
LLC Agreement d) each Series B-1 Unit shall remain subject to the terms of the
LLC Agreement and this Agreement regardless of who holds such Series B-1 Unit
and e) the effect that the employment by the Company of the Principal or events
related to such employment have on the rights of and restrictions on the Series
B-1 Units, including vesting, and the rights of the Company with regard to the
Series B-1 Units, under this Agreement, shall not be altered by any transfer of
the Series B-1 Units.

       

      (k)           Employment
Relationship.  Nothing in the issuance of the Series B-1 Units
and nothing in this Agreement shall confer upon the Principal the right to
continued employment by the Company or affect in any way the right of the
Company to terminate such employment at any time.

       

      (l)
           Rights of Third
Parties.  Nothing expressed or implied in this Agreement is
intended or shall be construed to confer upon or give any Person, other than the
Parties hereto, any rights or remedies under or by reason of this
Agreement.

       

      (m)           Construction.  Where
specific language is used to clarify by example a general statement contained
herein, such specific language shall not be deemed to modify, limit or restrict
in any manner the construction of the general statement to which it
relates.  The language used in this Agreement shall be deemed to be
the language chosen by the parties to express their mutual intent, and no rule
of strict construction shall be applied against any party.

       

      (n)           Survival of Representations,
Warranties and Agreements.  All representations, warranties and
agreements contained herein shall survive the consummation of the transactions
contemplated hereby and the termination of this Agreement.

       

      (o)           WAIVER OF PUNITIVE AND EXEMPLARY
DAMAGE CLAIMS.  EACH PARTY, BY EXECUTING THIS AGREEMENT,
WAIVES, TO THE FULLEST EXTENT ALLOWED BY LAW, ANY CLAIMS TO RECOVER PUNITIVE,
EXEMPLARY OR SIMILAR DAMAGES NOT MEASURED BY THE PREVAILING PARTY’S ACTUAL
DAMAGES IN ANY DISPUTE OR CONTROVERSY ARISING UNDER, RELATING TO OR IN
CONNECTION WITH THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO, ANY ARBITRATION
PROCEEDING.

       

      *       *       *

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

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

       

      
        	 
      	
                GENESIS
      ENERGY, LLC

              	 
      
	 	 	 
	 	 	 
	 
      	
                By:

              	
                 /s/ Robert V. Deere

              	 
      
	 
      	
                Name: 
      

              	
                Robert V. Deere

              	 
      
	 
      	
                Title:

              	
                Chief Financial Officer

              	 
      
	 	 	 	 
	 	 	 	 
	 
      	
                /s/ Steve Nathanson

              	 
      
	 
      	
                Steve
      Nathanson

              	 
      

      

       

       

      SPOUSAL
CONSENT

       

      The
undersigned Principal’s spouse, if any, is fully aware of, understands and fully
consents and agrees to the provisions of this Agreement and the LLC Agreement
and their binding effect upon any marital or community property interests she
may now or hereafter own, and agrees that the termination of her and the
Principal’s marital relationship for any reason shall not have the effect of
removing any Series B-1 Units otherwise subject to this Agreement from coverage
hereunder and that her awareness, understanding, consent and agreement are
evidenced by her signature below.

       

      
        	 
      	
                /s/ Kathryn Nathanson

              	 
      	 
      
	 
      	
                Spouse
      of Steve Nathanson

              	 
      	 
      

      

       

      [Signature Page to Nathanson
Restricted Unit Agreement]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
A

       

      DEFINED
TERMS

       

      “Act” is
defined in the LLC Agreement.

       

      “Affiliate”
is defined in the LLC Agreement.

       

      “Board” is
defined in the LLC Agreement.

       

      “Cause” is
defined in the Employment Agreement.

       

      “Change of
Control” means the occurrence of any of the following events other than
any event that constitutes an Internal Restructure:

       

      (a)           at
any time prior to the consummation of a Qualified Public Offering (i) the sale
of more than 50% of the issued and outstanding Aggregate Series A Units of the
Company held by the Persons who are Members prior to such event to a Person who
is not an Affiliate of any Member or (ii) the merger or consolidation of the
Company with any other Person that is not an Affiliate of the Company and as a
result of which the majority of the outstanding equity interests of the
surviving Person are not owned by one or more of the same owners as the owners
of the Aggregate Series A Units in the Company prior to such merger or
consolidation, and in each of cases (i) and (ii) immediately preceding, results
in the Quintana-Related Entities owning in the aggregate less than 10% of the
Series A Units of the Company owned by the Quintana-Related Entities prior to
such event;

       

      (b)           at
any time after a Qualified Public Offering, any “person” (as such term is used
in Section 13(d) and 14(d) of the Exchange Act) (other than (i) a trustee or
other fiduciary holding securities under an employee benefit plan of the IPO
Corporation or any affiliate thereof, (ii) the Quintana-Related Entities or
(iii) any entity owned, directly or indirectly, by the Members of the Company in
substantially the same proportions as their ownership of Units of the Company)
acquires (other than any acquisition directly from the IPO Corporation and any
acquisition by the IPO Corporation) “beneficial ownership” (within the meaning
of Rule 13d-3 under the Exchange Act) of securities of the IPO Corporation
representing 50% or more of the combined voting power of the IPO Corporation’s
then outstanding securities; provided, however, that if
the IPO Corporation engages in a merger or consolidation in which the IPO
Corporation or the surviving entity in such merger or consolidation becomes a
subsidiary of another entity, then references to the IPO Corporation’s then
outstanding securities shall be deemed to refer to the outstanding securities of
such parent entity;

       

      (c)           at
any time after a Qualified Public Offering, the consummation of a merger or
consolidation of the IPO Corporation with any other Person, other than a merger
or consolidation which would result in the voting securities of the IPO
Corporation outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of
the surviving entity (or if the surviving entity is or shall become a subsidiary
of another entity, then such parent entity)) more than 50% of the combined
voting power of the voting securities of the IPO Corporation (or such surviving
entity or parent entity, as the case may be) outstanding immediately after such
merger or consolidation; or

      
        
           

        

        
          A-1

          
            

          

        

        
           

        

      

      (d)           a
Liquidation Event.

       

      “Disability”
is defined in the Employment Agreement.

       

      “Fair Market
Value” is defined in the LLC Agreement.

       

      “Good
Reason” is defined in the Employment Agreement.

       

      “Internal
Restructure”
means any re-formation, conversion, transfer of assets, transfer by Members of
their Units, merger, incorporation, liquidation or other transaction undertaken
in a manner that results in the Members or their Affiliates continuing to have
substantially the same direct or indirect ownership of the Company’s assets in
place prior to the Internal Restructure, and preserves (a) the relative economic
interests of the Members or their Affiliates in the Company or any entity
(including an entity organized under the laws of a foreign jurisdiction) that
succeeds to the Company in such transaction and (b) the limited liability of the
Members to the substantially same extent afforded by the Act.

       

      “LLC
Agreement” is defined in the recitals.

       

      “Law” is
defined in the LLC Agreement.

       

      “Liquidation
Event” is
defined in the LLC Agreement.

       

      “Member(s)”
is defined in the LLC Agreement.

       

      “Person” is
defined in the LLC Agreement.

       

      “Purchase
Notice” is
defined in Section
6(b).

       

      “Purchase Notice
Date” is defined in Section
6(b).

       

      “Purchase
Price” is
defined in Section
6(a).

       

      “Qualified
Public
Offering”
is defined in the LLC Agreement.

       

      “Quintana-Related
Entity” is defined in the LLC Agreement.

       

      “Related
Parties”
means the Company and each of its Subsidiaries.

       

      “Sale of the
Business” is defined in the LLC Agreement.

       

      “Series B
Units” are
defined in the LLC Agreement.

       

      “Series B-1
Units” are defined in Section 1.

      
        
           

        

        
          A-2

          
            

          

        

        
           

        

      

      “Subject
Units” are
defined in Section
6(b).

       

      “Subsidiaries”
is defined in the LLC Agreement.

       

      “Threshold
Value” is
defined in the LLC Agreement.

       

      “Trigger
Date” is
defined in Section
5(d).

       

      “Units” is
defined in the LLC Agreement.

       

      “Unvested
Units” are
defined in Section
3.

       

      “Vested
Units” are
defined in Section
4(a).

      
        
           

        

        
          A-3

          
            

          

        

        
           

        

      

      EXHIBIT
B

       

      SECTION
83(B) ELECTION FORM

       

      [See
Attached]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SECTION
83(B) ELECTION FORM

       

      Election
to Include in

      Taxable
Income in Year of Transfer Pursuant

      to
Section 83(b) of the Internal Revenue Code

       

      The
undersigned is receiving an award of restricted membership units of a Delaware
limited liability company which is being treated as a partnership for federal
income tax purposes.  All parties to the transaction believe the award
of restricted membership units to be a “profits interest” within the meaning of
Internal Revenue Service Revenue Procedure 93-27.  Notwithstanding the
foregoing, in the event that (i) the award of restricted membership units
constitutes a “capital interest” rather than a “profits interest” or (ii) the
undersigned disposes of such restricted membership units within two years
following receipt thereof, the undersigned hereby makes an election pursuant to
Section 83(b) of the Internal Revenue Code with respect to the property
described below and supplies the following information in accordance with the
regulations promulgated thereunder:

       

      
        	
                1.

              	
                The
      name, address and taxpayer identification number of the undersigned
      are:

              

      

       

      
      

      
        Name:            
______________________________
Address:       
______________________________                          

      ______________________________

      

      Taxpayer
Identification
Number:     _______________________________

      

      
        	
                2.

              	
                Description
      of the property with respect to which the election is being
      made:

              

      

       

      Series
B-1 Units of Genesis Energy, LLC (the “Company”).

       

      
        	
                3.

              	
                The
      date on which the property was transferred is February ___,
      2010.

              

      

       

      The
taxable year to which this election relates is calendar year 2010.

       

      
        	
                4.

              	
                Nature
      of the restrictions to which the property is
  subject:

              

      

       

      The _____
Series B-1 Units issued to the taxpayer vest over time and are subject to
forfeiture in the event certain employment conditions are not
satisfied.

       

      
        	
                5.

              	
                The
      fair market value at the time of transfer (determined without regard to
      any restriction other than a restriction which by its terms will never
      lapse) of the property with respect to which this election is being made
      is $0.

              

      

       

      
        	
                6.

              	
                The
      amount paid by the taxpayer for said property is
  $0.

              

      

       

      
        	
                7.

              	
                A
      copy of this statement has been furnished to the Company as provided in
      Treasury Regulation Section
1.83-2(d).

              

      

       

      Date:     February
___, 2010

       

      
        	 
      	 
      	 
      
	 	 	 
	 	 	 
	
                Printed
      Name:    

              	 
      	 
      

      

      

       

B-1

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