Document:

Exhibit

Exhibit 10.147

FIRST AMENDMENT TO 
FOURTH AMENDED AND RESTATED OMNIBUS AGREEMENT
This First Amendment to the Fourth Amended and Restated Omnibus Agreement (this “Amendment”) is entered into as of 00:01 a.m. Eastern Standard Time on January 1, 2019, by and among Andeavor LLC, a Delaware limited company (“Andeavor”), on behalf of itself and the other Andeavor Entities (as defined herein), Tesoro Refining & Marketing Company LLC, a Delaware limited liability company and formerly known as Tesoro Refining and Marketing Company (“TRMC”), Tesoro Companies, Inc., a Delaware corporation (“Tesoro Companies”), Tesoro Alaska Company LLC, a Delaware limited liability company and formerly known as Tesoro Alaska Company (“Tesoro Alaska”), Andeavor Logistics LP, a Delaware limited partnership (the “Partnership”), Tesoro Logistics GP, LLC, a Delaware limited liability company (the “General Partner” and together with Andeavor, the Andeavor Entities, TRMC, Tesoro Companies, Tesoro Alaska and the Partnership, the “Original Parties”), and Marathon Petroleum Company LP, a Delaware limited partnership (“MPCLP”).  The above-named entities are sometimes referred to in this Amendment each as a “Party” and collectively as the “Parties.”  Capitalized terms used and not otherwise defined in this Amendment shall have the meanings ascribed to such terms in the Omnibus Agreement (as that term is defined below).
WHEREAS, the Original Parties are parties to that certain Fourth Amended and Restated Omnibus Agreement, dated as of October 30, 2017 (the “Omnibus Agreement”);
WHEREAS, pursuant to Section 9.5 of the Omnibus Agreement, the Omnibus Agreement may be amended by the written agreement of all of the Original Parties; and
WHEREAS, the Parties, including all of the Original Parties, wish to amend the Omnibus Agreement as set forth herein.
NOW, THEREFORE, in consideration of the promises, mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, as set forth herein, the Parties agree as follows:
		
	1.
	The preamble to the Omnibus Agreement is hereby amended to add MPCLP as a party to the Omnibus Agreement, and MPCLP, by its signature below, agrees to be bound by, and subject to, all of the covenants, terms and conditions of the Omnibus Agreement as though an original party thereto.

		
	2.
	Section 4.1 in the Omnibus Agreement is hereby amended and restated in its entirety as follows:

(a)    MPCLP agrees to provide, for the Partnership Group’s benefit, centralized corporate services that Andeavor and the applicable Andeavor Entities, or MPCLP, as applicable, have traditionally provided in connection with the Assets including, without limitation, the general and administrative services listed on Schedule IV to this Agreement. As consideration for such services, the Partnership will pay MPCLP a monthly administrative fee in the amount set forth in Schedule VIII to this Agreement (the “Administrative Fee”), payable on or before the tenth business day of each month, commencing in the first month following the date hereof. Andeavor may increase the 

-1-
 

Administrative Fee on July 1 of each year, commencing on July 1, 2018, by a percentage equal to the positive change, if any, in the CPI-U (All Urban Consumers) for the prior calendar year, rounded to the nearest one-tenth (1/10) of one percent (1%), or to reflect any increase in the cost of providing centralized corporate services to the Partnership Group due to changes in any law, rule or regulation applicable to MPCLP or the Partnership Group, including any interpretation of such laws, rules or regulations.  
(b)    At the end of each calendar year, the Partnership will have the right to submit to MPCLP a proposal to reduce the amount of the Administrative Fee for that year if the Partnership believes, in good faith, that the centralized corporate services performed by MPCLP for the benefit of the Partnership Group for the year in question do not justify payment of the full Administrative Fee for that year.  If the Partnership submits such a proposal to MPCLP, MPCLP agrees that it will negotiate in good faith with the Partnership to determine if the Administrative Fee for that year should be reduced and, if so, the amount of such reduction.  If the Parties agree that the Administrative Fee for that year should be reduced, then Andeavor shall promptly pay to the Partnership the amount of any reduction for that year.  
(c)    The Partnership Group shall reimburse Andeavor and MPCLP, as applicable, without duplication of any reimbursements made pursuant to Section 7.4 of the Partnership Agreement, for all other direct or allocated costs and expenses incurred by the Andeavor Entities or MPCLP on behalf of the Partnership Group, including, but not limited to the following; provided, however, that the costs and expenses described in subsections (i) through (vi) below shall not apply with respect to employees of MPCLP that are providing the services listed on Schedule IV:
(i)    salaries of employees of MPCLP, to the extent, but only to the extent, such employees perform services for the Partnership Group, provided that for employees that do not devote all of their business time to the Partnership Group, such expenses shall be based on the annual weighted average of time spent and number of employees devoting services to the Partnership Group;
(ii)    except as otherwise provided in Section 4.1(c)(vi) below, the cost of employee benefits relating to employees of MPCLP, including 401(k), pension, bonuses and health insurance benefits (but excluding Marathon Petroleum Corporation (“MPC”) stock-based compensation expense), to the extent, but only to the extent, such employees perform services for the Partnership Group, provided that for employees that do not devote all of their business time to the Partnership Group, such expenses shall be based on the annual weighted average of time spent and number of employees devoting their services to the Partnership Group;
(iii)    any expenses incurred or payments made by MPCLP or the applicable Andeavor Entities for insurance coverage with respect to the Assets or the business of the Partnership Group;
(iv)    all expenses and expenditures incurred by MPCLP or the applicable Andeavor Entities as a result of the Partnership becoming and continuing as a publicly traded entity, including, but not limited to, costs associated with annual and quarterly 

- 2 -
 

reports, independent auditor fees, partnership governance and compliance, registrar and transfer agent fees, tax return and Schedule K-1 preparation and distribution, legal fees and independent director compensation;
(v)    all sales, use, excise, value added or similar taxes, if any, that may be applicable from time to time with respect to the services provided by MPCLP to the Partnership Group pursuant to Section 4.1(a);
(vi)    any severance or similar amounts (“Severance Amounts”) due to the President of the General Partner or the Vice President, Operations of the General Partner in the event of a Change of Control (or similar term, in each case as defined in the applicable management stability agreement) of Andeavor under the terms of their respective management stability agreements with Andeavor or MPCLP, provided that such reimbursement shall be based on the percentage of time spent by such employee on the business of the Partnership Group during the last completed payroll period immediately preceding the date of such Change of Control. Notwithstanding anything in this Agreement to the contrary, in no event will the Partnership Group reimburse Andeavor or MPCLP for, or otherwise in any way be responsible for, (A) any Severance Amounts due to any employee of MPCLP or the applicable Andeavor Entities (other than the President of the General Partner or the Vice President, Operations of the General Partner) in the event of a Change of Control (or similar term, in each case as defined in the applicable Employment Agreement) of Andeavor, or (B) any Andeavor or MPC stock-based compensation expense related to accelerated vesting of Andeavor or MPC equity awards.  For the purposes of this Section 4.1(c)(vi), the term “Employment Agreement” shall include any employment agreement, management stability agreement or similar agreement between Andeavor or MPCLP and any employee of MPCLP or the applicable Andeavor Entities; and
(vii)    any other expenses listed on Schedule IV and identified as applicable to this clause (vii).
Such reimbursements shall be made on or before the tenth business day of the month following the month such costs and expenses are incurred or accrued.  For the avoidance of doubt, the costs and expenses set forth in Section 4.1(c) shall be paid by the Partnership Group in addition to, and not as a part of or included in, the Administrative Fee.
		
	3.
	Section 9.2 of the Omnibus Agreement is amended to add the following notice information at the end of the section:

If to MPCLP:

Marathon Petroleum Company LP
539 South Main St.
Findlay, OH 45840
Attn:  General Counsel
		
	4.
	Section 9.3 of the Omnibus Agreement is amended to add “, MPCLP” after “Andeavor” in the first sentence of such section.

- 3 -
 

		
	5.
	Schedule 4.1(a) to the Omnibus Agreement is amended to replace “Andeavor” with “MPCLP” in the first clause.

		
	6.
	The provisions of Article IX of the Omnibus Agreement, as amended by this Amendment, are incorporated herein by reference and apply to the terms of this Amendment mutatis mutandis.

 [Signature page follows]

- 4 -
 

IN WITNESS WHEREOF, the Parties hereto have caused this Amendment to be executed by as of the date first set forth above.

	
		
	ANDEAVOR LLC

	 
	 

	By:
	/s/ Molly R. Benson

	Name:
	Molly R. Benson

	Title:
	Vice President and Secretary

	 
	 

	TESORO REFINING & MARKETING COMPANY LLC

	 
	 

	By:
	/s/ Molly R. Benson

	Name:
	Molly R. Benson

	Title:
	Vice President and Secretary

	 
	 

	TESORO COMPANIES, INC.

	 
	 

	By:
	/s/ Molly R. Benson

	Name:
	Molly R. Benson

	Title:
	Vice President and Secretary

	 
	 

	TESORO ALASKA COMPANY LLC

	 
	 

	By:
	/s/ Molly R. Benson

	Name:
	Molly R. Benson

	Title:
	Vice President and Secretary

Signature Page to First Amendment

	
		
	ANDEAVOR LOGISTICS LP

	 
	 

	By:
	Tesoro Logistics GP, LLC, its general partner

	 
	 

	 
	 

	By:
	/s/ Don J. Sorensen

	 
	Don J. Sorensen

	 
	President

	 
	 

	TESORO LOGISTICS GP, LLC

	 
	 

	By:
	/s/ Don J. Sorensen

	 
	Don J. Sorensen

	 
	President

	 

Signature Page to First Amendment

	
		
	MARATHON PETROLEUM COMPANY LP

	 
	 

	 
	 

	By:
	/s/ Molly R. Benson

	Name:
	Molly R. Benson

	Title:
	Vice President, Chief Securities, Governance & Compliance Officer and Corporate Secretary

	 
	 

	 
	 

	 
	 

	 

	 
	 

	 
	 

	 
	 

	 
	 

	 

Signature Page to First AmendmentExhibit

Exhibit 10.148
AMENDMENT AGREEMENT TO LONG TERM INCENTIVE AWARD
This Amendment Agreement (this “Agreement”) hereby amends the Long-Term Incentive Award previously entered into by Steven Sterin (“Employee”) and Andeavor (f/k/a Tesoro Corporation) (“Andeavor”) and is made by and between Employee and Andeavor.  Employee and Andeavor are parties to this Agreement and are collectively referred to herein as the “Parties.”  This Agreement provides for all payments to which Employee shall be entitled from the Company (as defined below) in connection with the subject matter hereof.  This Agreement is effective as of October 3, 2018 (“Effective Date”).
As used in this Agreement, any reference to Employee shall include Employee, and in their capacities as such, Employee’s heirs, administrators, representatives, executors, legatees, successors, agents and assigns.  As used in this Agreement, any reference to the “Company” shall mean Andeavor, all subsidiaries, affiliates, successors, and assigns thereof.
In consideration of the mutual promises, agreements and representations contained herein, the Parties agree as follows:
1.    Consideration.  Employee acknowledges that this Agreement provides for the amount due to Employee under Paragraph 2(a) as consideration for Employee’s promises set forth in Paragraph 3.        
2.    Company’s Obligations.
a)    In consideration of the promises set forth in Paragraph 3 below, the Company agrees to pay or provide $150,000, provided Employee executes and returns this Agreement, and which shall be payable as soon as practicable following the Effective Date.
b)    All payments under this Agreement shall be made subject to applicable tax withholding, and the Company shall withhold from any payments under this Agreement all federal, state and local taxes as the Company is required to withhold pursuant to any law or governmental rule or regulation.  Employee shall be responsible for all taxes applicable to amounts payable under this Agreement.
3.    Employee’s Obligations.  The Parties hereto recognize and acknowledge that due to the position of Employee with the Company, he was provided with certain highly confidential and trade secret information, the disclosure of which would result in great competitive harm to the Company, regardless of whether such disclosure was intentional or inadvertent.  Additionally, the Employee’s disclosure of such information or other breach of the provisions of this Paragraph, would be harmful to the good will established by the Company.  Accordingly, the Parties agree that certain restrictive covenants are appropriate and necessary as provided below.  

a)    Employee agrees that he will continue to be subject to his obligations under the Employee’s 2018, 2017, and 2016 Performance Shares Grants, 2018 2017, and 2016 Market Stock Unit Awards, and 2018 and 2017 Phantom Units Awards; provided, however, that the “Covenants”, set forth in subsection (i) in the Performance Shares Grant and Market Stock Unit Award agreements shall be superseded and replaced by, and a new subsection, “Noncompetition,” shall be added to the Phantom Unit Award agreements, all consistent with Paragraph 3(d) below; and the “Covenants,” set forth in subsection (iii) in the Performance Shares Grant and Market Stock Unit Award agreements shall be superseded and replaced by, and a new subsection shall be added to the Phantom Unit Award agreements, all consistent with Paragraphs 3(b) and (c) below.  All entitlements and other Covenants in such award agreements shall remain and be enforceable as written, unless modified herein.
b)    Employee acknowledges that Employee has had access to and become familiar with various trade secrets and proprietary and confidential information of Company, including, but not limited to, the identity, responsibilities, and/or income of employees, costs of doing business, financial information, formulas, human resources, processes, and suppliers, compilations of information, records, customer information, methods of doing business, information about past, present, pending, and/or planned transactions and strategies, and other confidential information (collectively referred to as “Confidential Information”), which are owned by Company and regularly used in the operation of its business, and as to which Company takes precautions to prevent dissemination to persons other than certain directors, officers, and employees.  Employee acknowledges that the Confidential Information (i) is secret and not known in the industry; (ii) gives Company an advantage over competitors who do not know or use the Confidential Information; (iii) is of such value and nature as to make it reasonable and necessary to protect and preserve the confidentiality and secrecy of the Confidential Information; and (iv) constitutes a valuable, special, and unique asset of Company, the disclosure of which could cause substantial injury and loss of profits and goodwill to Company.  Confidential Information does not include material, data, documents, and/or information that Company has voluntarily placed in the public domain; that has been lawfully and independently developed and publicly disclosed by third parties; that constitutes general knowledge and skills that Employee gained during the time period of employment with Company, or that otherwise enters the public domain though lawful means.
c)    Employee agrees that Employee will not in any way use or disclose any Confidential Information, directly or indirectly, at any time in the future, and shall otherwise protect such information from unauthorized use or disclosure by others.  All files, records, documents, information, data, and similar items relating to the business of Company, or its employees, prospects, services, suppliers, products, customers, finances, data processing, purchasing, accounting, or marketing systems, whether prepared by me or which otherwise came into my possession, will remain the exclusive property of Company.  

2

d)    Employee agrees that he will not, for a period of three years following the Termination Date, directly or indirectly, serve as an officer, director, owner, contractor, consultant, or employee of, or to, any the following organizations (or any of their respective subsidiaries or divisions): HollyFrontier Corporation; PBF Energy Inc.; Phillips 66; Valero Energy Corporation; Magellan Midstream Partners, L.P.; Enbridge Energy Partners, L.P.; Western Gas Partners, L.P.; Buckeye Partners, L.P.; EnLink Midstream Partners, L.P.; DCP Midstream Partners, L.P.; NuStar Energy L.P.; Genesis Energy, L.P.; and Holly Energy Partners, L.P.; provided, however, that Employee may purchase or own up to 2% of a publicly traded business (together with Paragraph 3(a) above, the “Restrictive Covenants”).  For the avoidance of doubt, (y) speaking at a seminar or publishing materials for a general audience or (z) serving as an officer, director, owner, contractor, consultant, or employee of an entity that acquires or is acquired by one of the named organizations if Employee is not in direct competition with Andeavor shall not be a violation of the foregoing Restrictive Covenants so long as, in both (y) and (z), the Employee complies with the Confidential Information provisions of Paragraphs 3(b) and (c) above.
e)    Employee expressly acknowledges that continuing to comply with the terms of Paragraph 3(d) above are material terms of this Agreement.  In light of Employee’s experience across the businesses of the Company and his involvement thereof, Employee agrees that his severance payments under the Andeavor Executive Severance and Change In Control Plan (the “Plan”) and all other equity-based compensation awards, including dividends and dividend equivalents, granted to Employee by the Company, in each case, to the extent outstanding at the time of any such breach, shall be subject to immediate forfeiture and recoupment (in full) by the Company upon Employee’s breach, in any respect, of the covenant set forth in Paragraph 3(d) in the following order: (i) cash severance payable under the Plan; (ii) 2018 Performance Shares Grant; (iii) 2018 Market Stock Unit Award; (iv) 2018 Phantom Units Award; (v) 2017 Performance Shares Grant; (vi) 2017 Market Stock Unit Award; (vii) 2017 Phantom Units Award; (viii) 2016 Performance Shares Grant; and (ix) 2016 Market Stock Unit Award.  In the event Employee has sold any equity pursuant to one of the foregoing equity-based compensation awards granted and already distributed to Employee by the Company, the value of the amount received by Employee in such sale shall be subject to recoupment by the Company.  
f)    The Parties agree that neither will make or authorize any written or oral statements that are false or defamatory about the other, including the Company’s affiliates or their respective directors, officers or employees.  Nothing in this Agreement shall preclude the Employee from testifying or responding truthfully in response to any court or other legal or administrative process with subpoena power.  
4.    Application of Section 280G.  In the event that it shall be determined that any payment or distribution in the nature of compensation (within the meaning of section 280G(b)(2) of the Internal Revenue Code of 1986, as amended (the “Code”), to or for the benefit of the Employee, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (a “Payment”), would constitute an “excess parachute payment” within 

3

the meaning of section 280G of the Code, the aggregate present value of the Payments under the Agreement shall be reduced (but not below zero) to the Reduced Amount (defined below), provided that the reduction shall be made only if the Accounting Firm (described below) determines that the reduction will provide the Employee with a greater net after-tax benefit than would no reduction.  The “Reduced Amount” shall be an amount expressed in present value which maximizes the aggregate present value of Payments under this Agreement without causing any Payment under this Agreement to be subject to the Excise Tax (defined below), determined in accordance with section 280G(d)(4) of the Code.  The term “Excise Tax” means the excise tax imposed under section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax.  Payments under this Agreement shall be reduced in such a way as to minimize the reduction in the economic value deliverable to the Employee, and which reduction shall first take into account cash severance payments under the Plan and then all equity awards, beginning with the most recent award and proceeding in descending order, but otherwise, the ordering of all reductions in such categories shall be in the discretion of the Company. All determinations to be made under this paragraph shall be made by an independent certified public accounting firm selected by the Company prior to the change in control (the “Accounting Firm”), which shall provide its determinations and any supporting calculations both to the Company and the Employee within ten days after the last applicable payment date. Any such determination by the Accounting Firm shall be binding upon the Company and the Employee.  All of the fees and expenses of the Accounting Firm in performing the determinations referred to in this Paragraph shall be borne solely by the Company.
5.    Controlling Law.  This Agreement and all matters arising out of, or relating to, this Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas, without regard to conflict-of-law principles.  Notwithstanding the foregoing, and for the avoidance of any doubt, if a Company benefit plan or other employment-related agreement provides in writing that it shall be governed by the laws of another state, then all matters arising out of, or relating to, such benefit plan or other employment-related agreement shall be governed by, and construed in accordance with, the laws of the state designated in such benefit plan or other employment-related agreement.  
6.    Jurisdiction.  Any action arising out of, or relating to, any of the provisions of this Agreement shall be brought and prosecuted only in the United States District Court for the Western District of Texas, San Antonio Division, or if such court does not have jurisdiction or will not accept jurisdiction, in any court of general jurisdiction in Bexar County, Texas, and the jurisdiction of such court in any such proceeding shall be exclusive.  Employee also irrevocably and unconditionally consents to the service of any process, pleadings, notices or other papers. The Parties hereto agree to waive their right to trial by jury in any action brought to construe or enforce this Agreement. 
7.    Severability and Assignment.  If any provision of this Agreement is construed to be invalid, unlawful or unenforceable, then the remaining provisions hereof shall not be affected 

4

thereby and shall be enforceable without regard thereto.  If any covenant or agreement is held to be unenforceable because of the duration thereof or the scope thereof, then the court making such determination shall have the power to reduce the duration and limit the scope thereof, and the covenant or agreement shall then be enforceable in its reduced form.  This Agreement is binding upon, and inures to the benefit of the Parties and their respective successors and assigns.
8.    Amendment.  The Parties agree that this Agreement may not be altered, amended or modified, in any respect, except by a writing duly executed by both Parties.  
9.    Entire Agreement.  The Parties understand that no promise, inducement or other agreement not expressly contained herein has been made conferring any benefit upon them, that this Agreement contains the entire agreement between the Parties with respect to the subject matter hereof (except as provided in the following sentence), and that the terms of this Agreement are contractual and not recitals only.  Notwithstanding the foregoing, Employee agrees that Employee shall remain subject to all Restrictive Covenants, and such Restrictive Covenants will continue in effect according to their terms. 
10.    Section 409A.  This Agreement is intended to comply with section 409A of the Code, or an exemption, and the provisions of this Paragraph shall apply notwithstanding any provisions of this Agreement to the contrary.  All payments to be made upon a termination of employment under this Agreement may only be made upon a “separation from service” under section 409A of the Code.  With respect to any payments that are subject to section 409A of the Code, in no event shall Employee, directly or indirectly, designate the calendar year of a payment.  With respect to any payments that are subject to section 409A of the Code, in no event shall the timing of Employee’s execution of this Agreement, directly or indirectly, result in Employee designating the calendar year of payment of any amount set forth in Paragraph 2(a) above, and if a payment of any amount set forth in Paragraph 2(a) above is subject to section 409A of the Code and could be made in more than one taxable year, based on timing of the execution of this Agreement, payment shall be made in the later taxable year.  If any payment or benefit provided to Employee in connection with the termination of employment is determined to constitute “nonqualified deferral compensation” within the meaning of section 409A and Employee is determined to be a “specified employee” as defined by section 409A(a)(2)(b)(i), then, to the extent necessary to comply with section 409A, such payment or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the termination date or, if earlier, on Employee’s death (the “Specified Employee Payment Date”).  The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date shall be paid to Employee in a lump sum on the Specified Employee Payment Date. Any reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of section 409A of the Code. 

5

IN WITNESS WHEREOF, and intending to be legally bound, the Parties agree to the terms of this Agreement.
	
					
	Date:
	October 1, 2018
	 
	ANDEAVOR

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Fiona Laird

	 
	 
	 
	 
	 

	 
	 
	 
	Name:
	Fiona Laird

	 
	 
	 
	 
	 

	 
	 
	 
	Title:
	Senior Vice President, Chief Human Resources Officer

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	EMPLOYEE

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	Date:

	September 26, 2018
	 
	By:
	/s/ Steven Sterin

	 
	 
	 
	 
	STEVEN STERIN

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00292-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00292-of-00352.parquet"}]]