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                                                                    EXHIBIT 10.1
                        [FORM WITH PERFORMANCE VESTING]

                         HOLLY LOGISTIC SERVICES, L.L.C.
                           RESTRICTED UNIT AGREEMENT
                      UNDER THE HOLLY ENERGY PARTNERS, L.P
                            LONG-TERM INCENTIVE PLAN

         This Restricted Unit Agreement (the "Agreement") is made and entered
into by and between HOLLY LOGISTIC SERVICES, L.L.C. (the "Company"), and (the
"Executive"). This Agreement is entered into as of the ____ day of_____, ______
(the "Date of Grant").

                              W I T N E S S E T H:

         WHEREAS, the Company has adopted the HOLLY ENERGY PARTNERS, L.P.
LONG-TERM INCENTIVE PLAN (the "Plan") to attract, retain and motivate employees,
directors and consultants; and

         WHEREAS, the Company believes that a grant to the Executive of
restricted units of Holly Energy Partners, L.P. (the "Partnership") as part of
the Executive's compensation for services provided to the Company is consistent
with the stated purposes for which the Plan was adopted.

         NOW, THEREFORE, it is agreed by and between the Company and the
Executive, in consideration of services rendered by the Executive, as follows:

         1. Grant. The Company hereby grants to the Executive as of the Date of
Grant an award of _______ Holly Energy Partners, L.P. Units (as defined in the
Plan), subject to the terms and conditions set forth in this Agreement,
including, without limitation, those described in Section 5 (the "Restricted
Units").

         2. Restricted Units. The Company shall obtain the Units (as defined in
the Plan) subject to this Agreement and cause such Units to be held for the
Executive in book entry form by the Partnership's transfer agent with a notation
that the Units are subject to restrictions. The Executive hereby agrees that the
Restricted Units shall be held subject to restrictions as provided in the
Agreement until the restrictions on such Restricted Units expire or the
Restricted Units are forfeited as provided in Section 4 of this Agreement. The
Executive hereby agrees that if part or all of the Restricted Units are
forfeited pursuant to this Agreement, the Company shall have the right to direct
the Partnership's transfer agent to cancel such forfeited Restricted Units or,
at the Company's election, transfer such Restricted Units to the Company or to
any designee of the Company.

         3. Rights of Executive. Effective as of the Date of Grant, the
Executive is a unitholder with respect to all of the Restricted Units granted to
him pursuant to Section 1 and has all of the rights of a unitholder with respect
to all such Restricted Units, including the right to receive all distributions
paid with respect to such Restricted Units and any right to vote with

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respect to such Restricted Units; provided, however, that such Restricted Units
shall be subject to the restrictions hereinafter described, including, without
limitation, those described in Section 5.

         4. Forfeiture and Expiration of Restrictions.

                  (a) The Executive shall forfeit to the Company (i) all of the
         Restricted Units immediately and without any payment to the Executive
         whatsoever if the Executive's employment with the Company or a
         subsidiary of the Company is terminated before ___ for any reason other
         than death, total and permanent disability, or retirement, as provided
         in Section 4(b) below, and (ii) two-thirds (2/3) of the Restricted
         Units if the Executive's employment with the Company or a subsidiary of
         the Company is so terminated after ___ and before ___, and (iii)
         one-third (1/3) of the Restricted Units if the Executive's employment
         with the Company or a subsidiary of the Company is so terminated after
         ___ and before ___. After ___, one-third (1/3) of the Restricted Units
         (the "___ Units") will be fully vested if (A) the Executive meets the
         Employment Requirement (as defined below) on ___ and (B) the Company
         achieves the Performance Standard (as defined below) for a quarter in
         the period beginning ___ and ending ___. If the Performance Standard is
         not achieved for a quarter in the period ___ and ending ___, the ___
         Units shall be forfeited. One-third of the Restricted Units (the "___
         Units") will be fully vested if (A) the Executive meets the Employment
         Requirement on ___ and (B) the Company achieves the Performance
         Standard for a quarter in the period beginning ___ and ending ___. If
         the Performance Standard is not achieved for a quarter in the period
         beginning ___ and ending ___, the ___ Units shall be forfeited.
         One-third of the Restricted Units (the "___ Units") will be fully
         vested if (A) the Executive meets the Employment Requirement on
         __________, ___ and (B) the Company achieves the Performance Standard
         for a quarter in the period beginning ___ and ending ___. If the
         Performance Standard is not achieved for a quarter in the period
         beginning ___ and ending ___, the ___ Units shall be forfeited. If the
         Executive meets the applicable Employment Requirement, the ___ Units,
         the ___ Units and/or the ___ Units as the case may be will become
         vested on the date, if any, that the Compensation Committee (the
         "Committee") certifies that the Partnership has met the Performance
         Standard applicable for the ___ Units, the ___ Units and/or the ___
         Units as the case may be. For purposes of this Agreement, the
         Employment Requirement means employment of the Executive by the Company
         or a subsidiary in the business of the Partnership at the date
         specified. For purposes of this Agreement, the Performance Standard for
         any quarter is average Quarterly Adjusted Net Income (as defined below)
         per diluted Unit of not less than $___ for the period that began on ___
         and ends at the end of the quarter considered, calculated as a simple
         average of the Quarterly Adjusted Net Income per diluted Unit computed
         for each quarter in such period. Quarterly Adjusted Net Income means
         net income for a quarter, as reported by the Partnership in its filings
         with the Securities and Exchange Commission, adjusted to exclude the
         effects of recoveries or liabilities resulting from litigation and
         administrative proceedings involving the Partnership and its
         subsidiaries. Restricted Units that become vested as provided above are
         hereafter referred to as "Vested Units."

                  (b) In the event of the Executive's (i) death, (ii) total and
         permanent disability as determined by the Compensation Committee (the
         "Committee") in its sole discretion,

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         or (iii)retirement after attaining the normal retirement age of 62 or
         retirement after attaining an earlier retirement age approved by the
         Committee, in its sole discretion, before lapse of all restrictions
         pursuant to Section 4(a) above, the Executive shall forfeit a number of
         Restricted Units equal to the number of Restricted Units specified in
         Section 1 times the percentage that the period of full months beginning
         on the first day of the calendar month following the date of death,
         disability or retirement and ending on _______bears to _____ days and
         any remaining Restricted Units that are not vested shall become Vested
         Units; provided, however, that any fractional units will be forfeited
         to the Company. In its sole discretion, the Committee may decide to
         vest all of the Restricted Units in-lieu of the prorated number of
         Restricted Units as provided in this Section 4(b). Unless the Committee
         determines otherwise, in its sole discretion, the Executive or the
         Executive's beneficiary or estate will have no right to any Restricted
         Units that remain subject to restrictions, and those Restricted Units
         will be forfeited.

                  (c) In the event of a "Special Involuntary Termination" as
         defined in Section 4(d)(vi) before lapse of all restrictions pursuant
         to Section 4(a) above, all restrictions described in Section 5 shall
         lapse and the Restricted Units will become Vested Units and the Company
         shall deliver the Vested Units to the Executive as soon as practicable
         thereafter.

                  (d) Definitions. For purposes of Section 4(c) above,

                           (i) "Change in Control" shall mean:

                                    A. Any "Person" (as defined in Section
                           4(d)(ii) below), other than Holly Corporation
                           ("Holly") or any of its wholly-owned subsidiaries,
                           HEP Logistics Holdings, L.P. (the "General Partner"),
                           the Partnership, the Company, or any of their
                           subsidiaries, a trustee or other fiduciary holding
                           securities under an employee benefit plan of Holly,
                           the Partnership, the Company or any of their
                           "Affiliates" (as defined in Section 4(d)(v) below),
                           an underwriter temporarily holding securities
                           pursuant to an offering of such securities, or an
                           entity owned, directly or indirectly, by the holders
                           of the voting securities of Holly, the Company, the
                           General Partner or the Partnership in substantially
                           the same proportions as their ownership in Holly, the
                           Company, the General Partner or the Partnership,
                           respectively, is or becomes the "Beneficial Owner"
                           (as defined in Section 4(d)(iii) below), directly or
                           indirectly, of securities of Holly, the Company, the
                           General Partner or the Partnership (not including in
                           the securities beneficially owned by such person any
                           securities acquired directly from Holly, the General
                           Partner, the Partnership, the Company or their
                           Affiliates) representing more than forty percent
                           (40%) of the combined voting power of Holly's, the
                           Company's, the General Partner's or the Partnership's
                           then outstanding securities, excluding any Person who
                           becomes such a Beneficial Owner in connection with a
                           transaction described in Section 4(d)(i)(C)(1) below.

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                                    B. The individuals who as of the Date of
                           Grant constitute the Board of Directors of Holly (the
                           "Holly Board") and any "New Director" (as defined in
                           Section 4(d)(iv) below) cease for any reason to
                           constitute a majority of the Holly Board.

                                    C. There is consummated a merger or
                           consolidation of Holly, the Company, the General
                           Partner or the Partnership with any other entity,
                           except if:

                                             (1) the merger or consolidation
                                    results in the voting securities of Holly,
                                    the Company, the General Partner or the
                                    Partnership outstanding immediately prior
                                    thereto continuing to represent (either by
                                    remaining outstanding or by being converted
                                    into voting securities of the surviving
                                    entity or any parent thereof) at least sixty
                                    percent (60%) of the combined voting power
                                    of the voting securities of Holly, the
                                    Company, the General Partner or the
                                    Partnership, as applicable, or such
                                    surviving entity or any parent thereof
                                    outstanding immediately after such merger or
                                    consolidation; or

                                             (2) the merger or consolidation is
                                    effected to implement a recapitalization of
                                    Holly, the Company, the General Partner or
                                    the Partnership (or similar transaction) in
                                    which no Person is or becomes the Beneficial
                                    Owner, directly, or indirectly, of
                                    securities of Holly, the Company, the
                                    General Partner or the Partnership, as
                                    applicable, (not including in the securities
                                    beneficially owned by such Person any
                                    securities acquired directly from Holly, the
                                    Company, the General Partner or the
                                    Partnership or their Affiliates other than
                                    in connection with the acquisition by Holly,
                                    the Company, the General Partner or the
                                    Partnership or its Affiliates of a business)
                                    representing more than forty percent (40%)
                                    of the combined voting power of Holly's, the
                                    Company's, the General Partner's or the
                                    Partnership's, as applicable, then
                                    outstanding securities.

                                    D. The holders of the voting securities of
                           Holly, the Company, the General Partner or the
                           Partnership approve a plan of complete liquidation or
                           dissolution of Holly, the Company, the General
                           Partner or the Partnership, as applicable, or an
                           agreement for the sale or disposition by Holly, the
                           Company, the General Partner or the Partnership of
                           all or substantially all of Holly's, the Company's,
                           the General Partner's or the Partnership's assets, as
                           applicable, other than a sale or disposition by
                           Holly, the Company, the General Partner or the
                           Partnership of all or substantially all of Holly's,
                           the Company's, the General Partner's, or the
                           Partnership's assets, as applicable, to an entity at
                           least sixty percent (60%) of the combined voting
                           power of the voting securities of which is owned by
                           the direct or indirect holders of the voting
                           securities of Holly, the

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                           Company, the General Partner or the Partnership, as
                           applicable, in substantially the same proportions as
                           their ownership of Holly, the Company, the General
                           Partner or the Partnership, as applicable,
                           immediately prior to such sale.

                           (ii) "Person" shall have the meaning given in section
                  3(a)(9) of the Securities Exchange Act of 1934 (the "1934
                  Act") as modified and used in sections 13(d) and 14(d) of the
                  1934 Act.

                           (iii) "Beneficial Owner" shall have the meaning
                  provided in Rule 13d-3 under the 1934 Act.

                           (iv) "New Director" shall mean an individual whose
                  election by the Holly Board, or nomination for election by
                  holders of the voting securities of Holly, was approved by a
                  vote of at least two-thirds (2/3) of the directors then still
                  in office who either were directors at the Date of Grant or
                  whose election or nomination for election was previously so
                  approved or recommended. However, "New Director" shall not
                  include a director whose initial assumption of office is in
                  connection with an actual or threatened election contest,
                  including but not limited to a consent solicitation relating
                  to the election of directors of Holly.

                           (v) "Affiliate" shall have the meaning set forth in
                  Rule 12b-2 promulgated under section 12 of the 1934 Act.

                           (vi) "Special Involuntary Termination" shall mean the
                  occurrence of (1) or (2) below within sixty (60) days prior
                  to, or at any time after, a "Change in Control" (as defined in
                  Section 4(d)(i)), where (1) is termination of the Executive's
                  employment with the Company (including subsidiaries of the
                  Company) by the Company for any reason other than "Cause" (as
                  defined in Section 4(d)(vii)) and (2) is a resignation by the
                  Executive from employment with the Company (including
                  subsidiaries of the Company) within ninety (90) days after an
                  "Adverse Change" (as defined in Section 4(d)(viii)) by the
                  Company (including subsidiaries of the Company) in the terms
                  of the Executive's employment.

                           (vii) "Cause" shall mean (A) an act or acts of
                  dishonesty on the part of the Executive constituting a felony
                  or serious misdemeanor and resulting or intended to result
                  directly in gain or personal enrichment at the expense of the
                  Company; (B) gross willful and wanton negligence in the
                  performance of the Executive's material and substantial duties
                  of employment with the Company; or (C) conviction of a felony
                  involving moral turpitude. The existence of Cause shall be
                  determined by the Committee, in its sole and absolute
                  discretion.

                           (viii) "Adverse Change" shall mean (A) a change in
                  the city in which the Executive is required to work regularly,
                  (B) a substantial increase in travel requirements of
                  employment, (C) a substantial reduction in duties of the type
                  previously performed by the Executive, or (D) a significant
                  reduction in

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                  compensation or benefits (other than bonuses and other
                  discretionary items of compensation) that does not apply
                  generally to executives of the Company or its successor.

         5. Limitations on Transfer. The Executive agrees that he shall not
dispose of (meaning, without limitation, sell, transfer, pledge, exchange,
hypothecate or otherwise dispose of) any Restricted Units hereby acquired prior
to the expiration of the relevant restrictions imposed by this Section 5 which
expiration shall be determined pursuant to Section 4 of this Agreement. Any
attempted disposition of the Restricted Units in violation of the preceding
sentence shall be null and void, and the Company shall not recognize or give
effect to such transfer on its books and records or recognize the person or
persons to whom such proposed transfer has been made as the legal or beneficial
holder thereof. Notwithstanding the foregoing, part or all of the Restricted
Units or rights under this Agreement may be transferred to a spouse pursuant to
a domestic relations order issued by a court of competent jurisdiction;
provided, however, such Restricted Units shall continue to be held pursuant to
Section 2 of this Agreement, and the transferee under the domestic relations
order shall agree that the Restricted Units so transferred shall continue to be
subject to the terms of this Agreement, including forfeiture in accordance with
Section 4(a) of this Agreement and pro rata forfeiture in accordance with
Sections 4(a) and (b) of this Agreement.

         6. Nontransferability of Agreement. This Agreement and all rights under
this Agreement shall not be transferable by the Executive during his life other
than by will or pursuant to applicable laws of descent and distribution. Any
rights and privileges of the Executive in connection herewith shall not be
transferred, assigned, pledged or hypothecated by the Executive or by any other
person or persons, in any way, whether by operation of law, or otherwise, and
shall not be subject to execution, attachment, garnishment or similar process.
In the event of any such occurrence, this Agreement shall automatically be
terminated and shall thereafter be null and void. Notwithstanding the foregoing,
all or some of the Restricted Units or rights under this Agreement may be
transferred to a spouse pursuant to a domestic relations order issued by a court
of competent jurisdiction, subject to the limitations on such transfer described
in Section 5.

         7. Adjustment of Restricted Units. The number of Restricted Units
granted to the Executive pursuant to this Agreement shall be adjusted to reflect
distributions of the Partnership paid in units, unit splits or other changes in
the capital structure of the Partnership, all in accordance with the Plan. All
provisions of this Agreement shall be applicable to such new or additional or
different units or securities distributed or issued pursuant to the Plan to the
same extent that such provisions are applicable to the units with respect to
which they were distributed or issued. In the event that the outstanding Units
(as defined in the Plan) of the Partnership are exchanged for a different number
or kind of units or other securities, or if additional, new or different units
are distributed with respect to the Units (as defined in the Plan) through
merger, consolidation, or sale of all or substantially all of the assets of the
Partnership, each remaining unit subject to this Agreement shall have
substituted for it a like number and kind of units or shares of new or
replacement securities as determined in the sole discretion of the Committee,
subject to the terms and provisions of the Plan.

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         8. Delivery of Vested Units. No Vested Units shall be delivered
pursuant to this Agreement until the approval of any governmental authority
required in connection with this Agreement, or the issuance of Vested Units
hereunder, has been received by the Company.

         9. Securities Act. The Company shall have the right, but not the
obligation, to cause the Restricted Units to be registered under the appropriate
rules and regulations of the Securities and Exchange Commission. The Company
shall not be required to deliver any Vested Units hereunder if, in the opinion
of counsel for the Company, such delivery would violate the Securities Act of
1933 or any other applicable federal or state securities laws or regulations.

         10. Federal and State Taxes. The Executive may incur certain
liabilities for Federal, state or local taxes and the Company may be required by
law to withhold such taxes for payment to taxing authorities. If the Executive
makes the election permitted by section 83(b) of the Internal Revenue Code, the
taxes shall be due and payable for the year in which this Agreement is executed.
If the Executive does not make such election, the taxes shall be payable for the
year in which the restrictions lapse pursuant to Section 4. Upon determination
of the year in which such taxes are due and the determination by the Company of
the amount of taxes required to be withheld, if any, the Executive shall either
pay to the Company, in cash or by certified or cashier's check, an amount equal
to the taxes required to be paid on such transaction, or the Executive shall
authorize the Company to withhold from monies owing by the Company to the
Executive an amount equal to the amount of federal, state or local taxes
required to be withheld. Authorization of the Executive to the Company to
withhold taxes pursuant to this Section 10 shall be in form and content
acceptable to the Committee. An authorization to withhold taxes pursuant to this
provision shall be irrevocable unless and until the tax liability of the
Executive has been fully paid. In the event that the Executive fails to make
arrangements that are acceptable to the Committee for providing to the Company,
at the time or times required, the amounts of federal, state and local taxes
required to be withheld with respect to the Restricted Units granted to the
Executive under this Agreement, the Company shall have the right to purchase at
current market price as determined by the Committee and/or to sell to one or
more third parties in either market or private transactions sufficient Vested
Units to provide the funds needed for the Company to make the required tax
payment or payments.

         11. Definitions; Copy of Plan. To the extent not specifically provided
herein, all terms used in this Agreement shall have the same meanings ascribed
to them in the Plan. By the execution of this Agreement, the Executive
acknowledges receipt of a copy of the Plan. If any provision of this Agreement
is held to be illegal, invalid or unenforceable under any applicable law, then
such provision will be deemed to be modified to the minimum extent necessary to
render it legal, valid and enforceable; and if such provision cannot be so
modified, then this Agreement will be construed as if not containing the
provision held to be invalid, and the rights and obligations of the parties will
be construed and enforced accordingly.

         12. Administration. This Agreement shall at all times be subject to the
terms and conditions of the Plan. The Committee shall have sole and complete
discretion with respect to all matters reserved to it by the Plan and decisions
of a majority of the Committee with respect thereto and this Agreement shall be
final and binding upon the Executive and the Company. In the event of any
conflict between the terms and conditions of this Agreement and the Plan, the
provisions of the Plan shall control.

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         13. No Right to Continued Employment. This Agreement shall not be
construed to confer upon the Executive any right to continue as an Executive of
the Company and shall not limit the right of the Company, in its sole
discretion, to terminate the service of the Executive at any time.

         14. Governing Law. This Agreement shall be interpreted and administered
under the laws of the State of Texas, without giving effect to any conflict of
laws provisions.

         15. Amendments. This Agreement may be amended only by a written
agreement executed by the Company and the Executive. Any such amendment shall be
made only upon the mutual consent of the parties, which consent (of either
party) may be withheld for any reason.

         16. No Liability for Good Faith Determinations. The General Partner,
the Partnership, the Company, Holly and the members of the Committee, the Board
and the Holly Board shall not be liable for any act, omission or determination
taken or made in good faith with respect to this Agreement or the Restricted
Units granted hereunder.

         17. No Guarantee of Interests. The Board, the Holly Board, the General
Partner, the Partnership, Holly and the Company do not guarantee the Units (as
defined in the Plan) from loss or depreciation.

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed by its officers thereunto duly authorized, and the Executive has set
his hand effective as of the date and year first above written.

                                         HOLLY LOGISTIC SERVICES, L.L.C.

                                         By:
                                            ------------------------------------

                                         ---------------------------------------
                                         Executive

                                       8<PAGE>

                                                                    EXHIBIT 10.2
                       [FORM WITHOUT PERFORMANCE VESTING]

                         HOLLY LOGISTIC SERVICES, L.L.C.
                           RESTRICTED UNIT AGREEMENT
                      UNDER THE HOLLY ENERGY PARTNERS, L.P
                            LONG-TERM INCENTIVE PLAN

     This Restricted Unit Agreement (the "Agreement") is made and entered into
by and between HOLLY LOGISTIC SERVICES, L.L.C. (the "Company"), and
____________________ (the "Employee"). This Agreement is entered into as of the
____ day of_____, ______ (the "Date of Grant").

                              W I T N E S S E T H:

     WHEREAS, the Company has adopted the HOLLY ENERGY PARTNERS, L.P. LONG-TERM
INCENTIVE PLAN (the "Plan") to attract, retain and motivate employees, directors
and consultants; and

     WHEREAS, the Company believes that a grant to the Employee of restricted
units of HOLLY ENERGY PARTNERS, L.P. (the "Partnership") as part of the
Employee's compensation for services provided to the Company is consistent with
the stated purposes for which the Plan was adopted.

     NOW, THEREFORE, it is agreed by and between the Company and the Employee,
in consideration of services rendered by the Employee, as follows:

     1. Grant. The Company hereby grants to the Employee as of the Date of Grant
an award of _______ Partnership Units (as defined in the Plan), subject to the
terms and conditions set forth in this Agreement, including, without limitation,
those described in Section 5 (the "Restricted Units").

     2. Restricted Units. The Company shall obtain the Units (as defined in the
Plan) subject to this Agreement and cause such Units to be held for the Employee
in book entry form by the Partnership's transfer agent with a notation that the
Units are subject to restrictions. The Employee hereby agrees that the
Restricted Units shall be held subject to restrictions as provided in the
Agreement until the restrictions on such Restricted Units expire or the
Restricted Units are forfeited as provided in Section 4 of this Agreement. The
Employee hereby agrees that if part or all of the Restricted Units are forfeited
pursuant to this Agreement, the Company shall have the right to direct the
Partnership's transfer agent to cancel such forfeited Restricted Units or, at
the Company's election, transfer such Restricted Units to the Company or to any
designee of the Company.

     3. Rights of Employee. Effective as of the Date of Grant, the Employee is a
unitholder with respect to all of the Restricted Units granted to him pursuant
to Section 1 and has all of the rights of a unitholder with respect to all such
Restricted Units, including the right to receive all distributions paid with
respect to such Restricted Units and any right to vote with

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respect to such Restricted Units; provided, however, that such Restricted Units
shall be subject to the restrictions hereinafter described, including, without
limitation, those described in Section 5.

     4. Forfeiture and Expiration of Restrictions.

          (a) The Employee shall forfeit to the Company (i) all of the
     Restricted Units immediately and without any payment to the Employee
     whatsoever if the Employee's employment with the Company or a subsidiary of
     the Company is terminated before ___, ___ for any reason other than death,
     total and permanent disability, or retirement, as provided in Section 4(b)
     below, and (ii) two-thirds (2/3) of the Restricted Units if the Employee's
     employment with the Company or a subsidiary of the Company is so terminated
     after ____, ___ and before ____, ___, and (iii) one-third (1/3) of the
     Restricted Units if the Employee's employment with the Company or a
     subsidiary of the Company is so terminated after ____, ___ and before ____,
     ___. After ____, ___, one-third (1/3) of the Restricted Units shall be
     fully vested and nonforfeitable, and after ____, ___, two-thirds (2/3) of
     the Restricted Units shall be fully vested and nonforfeitable, and after
     ____, ___, all Restricted Units shall be fully vested and nonforfeitable
     ("Vested Units").

          (b) In the event of the Employee's (i) death, (ii) total and permanent
     disability as determined by the Compensation Committee (the "Committee") in
     its sole discretion, or (iii) retirement after attaining the normal
     retirement age of 62 or retirement after attaining an earlier retirement
     age approved by the Committee, in its sole discretion, before lapse of all
     restrictions pursuant to Section 4(a) above, the Employee shall forfeit a
     number of Restricted Units equal to the number of Restricted Units
     specified in Section 1 times the percentage that the period of full months
     beginning on the first day of the calendar month following the date of
     death, disability or retirement and ending on _______bears to _____ months
     and any remaining Restricted Units that are not vested shall become Vested
     Units; provided, however, that any fractional units will be forfeited to
     the Company. In its sole discretion, the Committee may decide to vest all
     of the Restricted Units in-lieu of the prorated number of Restricted Units
     as provided in this Section 4(b). Unless the Committee determines
     otherwise, in its sole discretion, the Employee or the Employee's
     beneficiary or estate will have no right to any Restricted Units that
     remain subject to restrictions, and those Restricted Units will be
     forfeited.

          (c) In the event of a "Special Involuntary Termination" as defined in
     Section 4(d)(vi) before lapse of all restrictions pursuant to Section 4(a)
     above, all restrictions described in Section 5 shall lapse and the
     Restricted Units will become Vested Units and the Company shall deliver the
     Vested Units to the Employee as soon as practicable thereafter.

          (d) Definitions. For purposes of Section 4(c) above,

               (i) "Change in Control" shall mean:

                    A. Any "Person" (as defined in Section 4(d)(ii) below),
               other than Holly Corporation ("Holly") or any of its wholly-owned
               subsidiaries,

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                    HEP Logistics Holdings, L.P. (the "General Partner"), the
                    Partnership, the Company, or any of their subsidiaries, a
                    trustee or other fiduciary holding securities under an
                    employee benefit plan of Holly, the Partnership, the Company
                    or any of their "Affiliates" (as defined in Section 4(d)(v)
                    below), an underwriter temporarily holding securities
                    pursuant to an offering of such securities, or an entity
                    owned, directly or indirectly, by the holders of the voting
                    securities of Holly, the Company, the General Partner or the
                    Partnership in substantially the same proportions as their
                    ownership in Holly, the Company, the General Partner or the
                    Partnership, respectively, is or becomes the "Beneficial
                    Owner" (as defined in Section 4(d)(iii) below), directly or
                    indirectly, of securities of Holly, the Company, the General
                    Partner or the Partnership (not including in the securities
                    beneficially owned by such person any securities acquired
                    directly from Holly, the General Partner, the Partnership,
                    the Company or their Affiliates) representing more than
                    forty percent (40%) of the combined voting power of Holly's,
                    the Company's, the General Partner's or the Partnership's
                    then outstanding securities, excluding any Person who
                    becomes such a Beneficial Owner in connection with a
                    transaction described in Section 4(d)(i)(C)(1) below.

                         B. The individuals who as of the Date of Grant
                    constitute the Board of Directors of Holly (the "Holly
                    Board") and any "New Director" (as defined in Section
                    4(d)(iv) below) cease for any reason to constitute a
                    majority of the Holly Board.

                         C. There is consummated a merger or consolidation of
                    Holly, the Company, the General Partner or the Partnership
                    with any other entity, except if:

                                   (1) the merger or consolidation results in
                         the voting securities of Holly, the Company, the
                         General Partner or the Partnership outstanding
                         immediately prior thereto continuing to represent
                         (either by remaining outstanding or by being converted
                         into voting securities of the surviving entity or any
                         parent thereof) at least sixty percent (60%) of the
                         combined voting power of the voting securities of
                         Holly, the Company, the General Partner or the
                         Partnership, as applicable, or such surviving entity or
                         any parent thereof outstanding immediately after such
                         merger or consolidation; or

                                   (2) the merger or consolidation is effected
                         to implement a recapitalization of Holly, the Company,
                         the General Partner or the Partnership (or similar
                         transaction) in which no Person is or becomes the
                         Beneficial Owner, directly, or indirectly, of
                         securities of Holly, the Company, the General Partner
                         or the Partnership, as applicable, (not including in
                         the securities beneficially owned by such Person any
                         securities acquired directly from Holly, the

                                       3
<PAGE>

                         Company, the General Partner or the Partnership or
                         their Affiliates other than in connection with the
                         acquisition by Holly, the Company, the General Partner
                         or the Partnership or its Affiliates of a business)
                         representing more than forty percent (40%) of the
                         combined voting power of Holly's, the Company's, the
                         General Partner's or the Partnership's, as applicable,
                         then outstanding securities.

                         D. The holders of the voting securities of Holly, the
                    Company, the General Partner or the Partnership approve a
                    plan of complete liquidation or dissolution of Holly, the
                    Company, the General Partner or the Partnership, as
                    applicable, or an agreement for the sale or disposition by
                    Holly, the Company, the General Partner or the Partnership
                    of all or substantially all of Holly's, the Company's, the
                    General Partner's or the Partnership's assets, as
                    applicable, other than a sale or disposition by Holly, the
                    Company, the General Partner or the Partnership of all or
                    substantially all of Holly's, the Company's, the General
                    Partner's, or the Partnership's assets, as applicable, to an
                    entity at least sixty percent (60%) of the combined voting
                    power of the voting securities of which is owned by the
                    direct or indirect holders of the voting securities of
                    Holly, the Company, the General Partner or the Partnership,
                    as applicable, in substantially the same proportions as
                    their ownership of Holly, the Company, the General Partner
                    or the Partnership, as applicable, immediately prior to such
                    sale.

                    (ii) "Person" shall have the meaning given in section
               3(a)(9) of the Securities Exchange Act of 1934 (the "1934 Act")
               as modified and used in sections 13(d) and 14(d) of the 1934 Act.

                    (iii) "Beneficial Owner" shall have the meaning provided in
               Rule 13d-3 under the 1934 Act.

                    (iv) "New Director" shall mean an individual whose election
               by the Holly Board, or nomination for election by holders of the
               voting securities of Holly, was approved by a vote of at least
               two-thirds (2/3) of the directors then still in office who either
               were directors at the Date of Grant or whose election or
               nomination for election was previously so approved or
               recommended. However, "New Director" shall not include a director
               whose initial assumption of office is in connection with an
               actual or threatened election contest, including but not limited
               to a consent solicitation relating to the election of directors
               of Holly.

                    (v) "Affiliate" shall have the meaning set forth in Rule
               12b-2 promulgated under section 12 of the 1934 Act.

                    (vi) "Special Involuntary Termination" shall mean the
               occurrence of (1) or (2) below within sixty (60) days prior to,
               or at any time after, a "Change in Control" (as defined in
               Section 4(d)(i)), where (1) is termination of the

                                       4
<PAGE>

               Employee's employment with the Company (including subsidiaries of
               the Company) by the Company for any reason other than "Cause" (as
               defined in Section 4(d)(vii)) and (2) is a resignation by the
               Employee from employment with the Company (including subsidiaries
               of the Company) within ninety (90) days after an "Adverse Change"
               (as defined in Section 4(d)(viii)) by the Company (including
               subsidiaries of the Company) in the terms of the Employee's
               employment.

                    (vii) "Cause" shall mean (A) an act or acts of dishonesty on
               the part of the Employee constituting a felony or serious
               misdemeanor and resulting or intended to result directly in gain
               or personal enrichment at the expense of the Company; (B) gross
               or willful and wanton negligence in the performance of the
               Employee's material and substantial duties of employment with the
               Company; or (C) conviction of a felony involving moral turpitude.
               The existence of Cause shall be determined by the Committee, in
               its sole and absolute discretion.

                    (viii) "Adverse Change" shall mean (A) a change in the city
               in which the Employee is required to work regularly, (B) a
               substantial increase in travel requirements of employment, (C) a
               substantial reduction in duties of the type previously performed
               by the Employee, or (D) a significant reduction in compensation
               or benefits (other than bonuses and other discretionary items of
               compensation) that does not apply generally to executives of the
               Company or its successor.

          5. Limitations on Transfer. The Employee agrees that he shall not
     dispose of (meaning, without limitation, sell, transfer, pledge, exchange,
     hypothecate or otherwise dispose of) any Restricted Units hereby acquired
     prior to the expiration of the relevant restrictions imposed by this
     Section 5 which expiration shall be determined pursuant to Section 4 of
     this Agreement. Any attempted disposition of the Restricted Units in
     violation of the preceding sentence shall be null and void, and the Company
     shall not recognize or give effect to such transfer on its books and
     records or recognize the person or persons to whom such proposed transfer
     has been made as the legal or beneficial holder thereof. Notwithstanding
     the foregoing, part or all of the Restricted Units or rights under this
     Agreement may be transferred to a spouse pursuant to a domestic relations
     order issued by a court of competent jurisdiction; provided, however, such
     Restricted Units shall continue to be held pursuant to Section 2 of this
     Agreement, and the transferee under the domestic relations order shall
     agree that the Restricted Units so transferred shall continue to be subject
     to the terms of this Agreement, including forfeiture in accordance with
     Section 4(a) of this Agreement and pro rata forfeiture in accordance with
     Sections 4(a) and (b) of this Agreement.

          6. Nontransferability of Agreement. This Agreement and all rights
     under this Agreement shall not be transferable by the Employee during his
     life other than by will or pursuant to applicable laws of descent and
     distribution. Any rights and privileges of the Employee in connection
     herewith shall not be transferred, assigned, pledged or hypothecated by the
     Employee or by any other person or persons, in any way, whether by
     operation of law, or otherwise, and shall not be subject to execution,
     attachment, garnishment or similar process. In the event of any such
     occurrence, this Agreement shall automatically be terminated and shall

                                       5
<PAGE>

thereafter be null and void. Notwithstanding the foregoing, all or some of the
Restricted Units or rights under this Agreement may be transferred to a spouse
pursuant to a domestic relations order issued by a court of competent
jurisdiction, subject to the limitations on such transfer described in Section
5.

     7. Adjustment of Restricted Units. The number of Restricted Units granted
to the Employee pursuant to this Agreement shall be adjusted to reflect
distributions of the Partnership paid in units, unit splits or other changes in
the capital structure of the Partnership, all in accordance with the Plan. All
provisions of this Agreement shall be applicable to such new or additional or
different units or securities distributed or issued pursuant to the Plan to the
same extent that such provisions are applicable to the units with respect to
which they were distributed or issued. In the event that the outstanding Units
(as defined in the Plan) of the Partnership are exchanged for a different number
or kind of units or other securities, or if additional, new or different units
are distributed with respect to the Units (as defined in the Plan) through
merger, consolidation, or sale of all or substantially all of the assets of the
Partnership, each remaining unit subject to this Agreement shall have
substituted for it a like number and kind of units or shares of new or
replacement securities as determined in the sole discretion of the Committee,
subject to the terms and provisions of the Plan.

     8. Delivery of Vested Units. No Vested Units shall be delivered pursuant to
this Agreement until the approval of any governmental authority required in
connection with this Agreement, or the issuance of Vested Units hereunder, has
been received by the Company.

     9. Securities Act. The Company shall have the right, but not the
obligation, to cause the Restricted Units to be registered under the appropriate
rules and regulations of the Securities and Exchange Commission. The Company
shall not be required to deliver any Vested Units hereunder if, in the opinion
of counsel for the Company, such delivery would violate the Securities Act of
1933 or any other applicable federal or state securities laws or regulations.

     10. Federal and State Taxes. The Employee may incur certain liabilities for
Federal, state or local taxes and the Company may be required by law to withhold
such taxes for payment to taxing authorities. If the Employee makes the election
permitted by section 83(b) of the Internal Revenue Code, the taxes shall be due
and payable for the year in which this Agreement is executed. If the Employee
does not make such election, the taxes shall be payable for the year in which
the restrictions lapse pursuant to Section 4. Upon determination of the year in
which such taxes are due and the determination by the Company of the amount of
taxes required to be withheld, if any, the Employee shall either pay to the
Company, in cash or by certified or cashier's check, an amount equal to the
taxes required to be paid on such transaction, or the Employee shall authorize
the Company to withhold from monies owing by the Company to the Employee an
amount equal to the amount of federal, state or local taxes required to be
withheld. Authorization of the Employee to the Company to withhold taxes
pursuant to this Section 10 shall be in form and content acceptable to the
Committee. An authorization to withhold taxes pursuant to this provision shall
be irrevocable unless and until the tax liability of the Employee has been fully
paid. In the event that the Employee fails to make arrangements that are
acceptable to the Committee for providing to the Company, at the time or times
required, the amounts of federal, state and local taxes required to be withheld
with respect to the Restricted Units granted to the Employee under this
Agreement, the Company shall have the right to

                                       6
<PAGE>

purchase at current market price as determined by the Committee and/or to sell
to one or more third parties in either market or private transactions sufficient
Vested Units to provide the funds needed for the Company to make the required
tax payment or payments.

     11. Definitions; Copy of Plan. To the extent not specifically provided
herein, all terms used in this Agreement shall have the same meanings ascribed
to them in the Plan. By the execution of this Agreement, the Employee
acknowledges receipt of a copy of the Plan. If any provision of this Agreement
is held to be illegal, invalid or unenforceable under any applicable law, then
such provision will be deemed to be modified to the minimum extent necessary to
render it legal, valid and enforceable; and if such provision cannot be so
modified, then this Agreement will be construed as if not containing the
provision held to be invalid, and the rights and obligations of the parties will
be construed and enforced accordingly.

     12. Administration. This Agreement shall at all times be subject to the
terms and conditions of the Plan. The Committee shall have sole and complete
discretion with respect to all matters reserved to it by the Plan and decisions
of a majority of the Committee with respect thereto and this Agreement shall be
final and binding upon the Employee and the Company. In the event of any
conflict between the terms and conditions of this Agreement and the Plan, the
provisions of the Plan shall control.

     13. No Right to Continued Employment. This Agreement shall not be construed
to confer upon the Employee any right to continue as an Employee of the Company
and shall not limit the right of the Company, in its sole discretion, to
terminate the service of the Employee at any time.

     14. Governing Law. This Agreement shall be interpreted and administered
under the laws of the State of Texas, without giving effect to any conflict of
laws provisions.

     15. Amendments. This Agreement may be amended only by a written agreement
executed by the Company and the Employee. Any such amendment shall be made only
upon the mutual consent of the parties, which consent (of either party) may be
withheld for any reason.

     16. No Liability for Good Faith Determinations. The General Partner, the
Partnership, the Company, Holly and the members of the Committee, the Board and
the Holly Board shall not be liable for any act, omission or determination taken
or made in good faith with respect to this Agreement or the Restricted Units
granted hereunder.

     17. No Guarantee of Interests. The Board, the Holly Board, the General
Partner, the Partnership, Holly and the Company do not guarantee the Units (as
defined in the Plan) from loss or depreciation.

                                       7
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by
its officers thereunto duly authorized, and the Employee has set his hand
effective as of the date and year first above written.

                                         HOLLY LOGISTIC SERVICES, L.L.C.

                                         By:
                                            ------------------------------------

                                            ------------------------------------
                                            Employee

                                       8

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