Document:

exv10w15

 

Exhibit 10.15

LONG-TERM EQUITY APPRECIATION RIGHTS AWARD

AMENDMENT AGREEMENT

           This LONG-TERM EQUITY APPRECIATION RIGHTS AWARD AMENDMENT AGREEMENT (this “Agreement”) is
entered into as of November 9, 2005, by and between Gary R. Dalke (the “Participant”), RHC
Holdings, L.P., a Texas limited partnership (the “Company”), Western Refining, Inc., a Delaware
corporation (“WNR”), and Western Refining Company, L.P., a Delaware limited partnership (“WRLP”).

R E C I T A L S :

           WHEREAS, the Company has adopted that certain Long-Term Equity Appreciation Rights Plan (the
“EAR Plan”), the terms of which are incorporated herein by reference;

           WHEREAS, the Participant was awarded 1,000 Rights (the “Rights”) under the EAR Plan pursuant
to that certain Long-Term Equity Appreciation Rights Award with the Company, dated August 25, 2003
(the “Award”), the relevant terms of which are incorporated by reference; and

           WHEREAS, the Participant is an employee of WRLP; and

           WHEREAS, WNR is contemplating an initial public offering (“IPO”) of its common stock, $0.01
par value per share (the “Common Stock”); and

           WHEREAS, the Company desires to assign all of its rights and obligations under the EAR Plan
and the Award to WRLP, and WRLP desires to assume all such rights and obligations; and

           WHEREAS, the Participant desires to consent to the Company assigning such rights and
obligations to WRLP; and

           WHEREAS, the Company has requested, and the Participant has agreed, upon the closing of an IPO
of the Common Stock (the “Effective Time”), to cancel the Award, and as consideration therefore, to
make a payment of cash and/or restricted Common Stock (the “Restricted Stock”) to the Participant
pursuant to terms set forth in this Agreement;

           NOW THEREFORE, IT IS HEREBY AGREED, by and among the Company, WNR and the Participant, as
follows:

	1.	 	Assignment and Assumption. Effective as of the date hereof, (a) the Company hereby
irrevocably assigns, transfers, conveys and delivers to WRLP all of the Company’s right, title
and interest in and to the EAR Plan and the Award, (b) WRLP hereby assumes, and agrees to pay,
perform and discharge, all obligations and liabilities under the EAR Plan and the Award in
accordance with their respective terms, as amended by this Agreement and (c) the Participant
consents to the assignment by the Company of all of its rights and obligations under the EAR
Plan and the assumption of such rights and obligations by WRLP.

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	2.	 	Cash Payment. Promptly following the pricing of the Common Stock in the IPO (the
“Pricing Date”) and prior to the Effective Time, WRLP shall pay to the Participant a cash
amount equal to $4,300,000.00, which represents the aggregate “Fair Market Value” (as defined
in the Award) of the Rights awarded to the Participant pursuant to the Award.
	 
	3.	 	Additional Payment.

	 	(a)	 	In addition to the payment set forth in paragraph 2 of this Agreement, the
Participant shall be entitled to receive, at the Participant’s election, one of the
following additional forms of consideration:

	 	i.	 	Restricted Common Stock. The Participant shall be entitled to
receive a number of shares of Restricted Stock, computed as follows:

	 	(1)	 	the number of shares of Common Stock
outstanding immediately following the consummation of the IPO (not
including any shares of Common Stock issued in connection with the EAR
Plan or the Incentive Plan) (the “Issued Stock”) multiplied by the IPO
price of the Common Stock (the “IPO Price”), less
	 
	 	(2)	 	cash received by WNR for the sale of the Issued
Stock reduced by the amount of cash distribution to the partners of
WRLP immediately prior to the Effective Time, multiplied by
	 
	 	(3)	 	0.00001, less
	 
	 	(4)	 	the “Issue Price” (as defined in the Award) of
each Right, multiplied by
	 
	 	(5)	 	the number of Rights, less
	 
	 	(6)	 	the amount of cash paid to the Participant
pursuant to paragraph 2 of this Agreement, divided by
	 
	 	(7)	 	the IPO Price (with the resulting number of
shares of Common Stock rounded up to the nearest whole share).

	 	ii.	 	Cash. The Participant shall be entitled to receive a cash
payment equal to the amount computed pursuant to sub-clauses (1) through (6) of
clause (i) above multiplied by 50%. WRLP shall pay such cash amount to the
Participant as promptly as possible after the Pricing Date and prior to the
Effective Time.

	 	(b)	 	Any shares of Restricted Stock issued pursuant to clause (i) of sub-paragraph
(a) above shall be issued by WNR (as consideration for the Participant’s employment
with WNR or its affiliates after the Effective Time) as promptly as possible after the
Effective Time pursuant to WNR’s Long-Term Incentive Plan (the “Incentive Plan”) to be
adopted by WNR on or before the Effective Time and shall be

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	 	 	 	subject to the terms and provisions thereof. The Restricted Stock, if any, issued
to the Participant pursuant to the terms of this Agreement shall vest ratably in
each of WNR’s fiscal quarters over two years beginning on the last day of WNR’s
first full fiscal quarter after the Effective Time; provided, however, that any
unvested Restricted Stock shall immediately and fully vest upon a Change of Control
(as defined in the Incentive Plan) or Disability (as defined in the Incentive Plan)
of the Participant.
	 
	 	(c)	 	The Participant shall make the election set forth above in paragraph 3(a) by
written notice to WRLP no later than the close of business on the first business day
after the Pricing Date. If the participant does not make such election by such time,
then the participant shall be deemed to have elected to receive the consideration set
forth in paragraph 3(a)(i).

	4.	 	Release of Claims and Termination of the EAR Plan. For and in consideration of the
amounts to be paid to the Participant by WNR and WRLP, as specified above, the Participant
hereby, as of the Effective Time, forever releases, waives and disclaims any and all rights,
claims, entitlements, awards, complaints or causes of action heretofore or hereafter arising
from or in connection with the Award or the EAR Plan, including, but not limited to, any
claims against WNR, WRLP, the Company or any of their affiliates, employees, directors,
agents, successors, parents or subsidiaries, whether brought on behalf of the Participant or
its successors, assigns or devisees, including, but not limited to, any claim for payments of
any amounts under the Award or the EAR Plan. The Participant agrees that, upon payment of the
amounts specified herein, the Company, WNR and WRLP shall each have fully and completely
discharged any and all obligations to the Participant in connection with the EAR Plan, the
Award and this Agreement. The Participant further agrees and acknowledges that (a) on and
after the Effective Date, the Award and the EAR Plan shall be terminated and (b) such
termination results in the termination of any and all rights that the Participant, its
successors, assigns or devisees have or had pursuant to the Award and the EAR Plan.
	 
	5.	 	Payment and Termination. Payment pursuant to paragraph 2 above shall be made on or
as soon as administratively feasible following the Pricing Date and if not made prior to the
Effective Time, shall be a continuing liability of the successor of WLRP. In no event shall
payment be made later than thirty (30) days following the Pricing Date; provided, however,
that if the Effective Time does not occur within five (5) business days after the Pricing
Date, or if the Effective Time has not occurred on or before May 31, 2006, all provisions of
this Agreement, except for Paragraph 1, shall automatically terminate, after which time all of
the Participant’s rights as set forth in the Award and the EAR Plan shall continue in full
force and effect with such obligation being the responsibility of WRLP.
	 
	6.	 	Not an Employment or Similar Contract. This Agreement shall not confer on the
Participant any right with respect to continuance of employment or other service with the WNR
or any of its affiliates nor will it interfere with or prevent in any way the right that WNR
or any of its affiliates would otherwise have to terminate or modify the terms of the
Participant’s employment or other service at any time. The foregoing shall apply even if
it is alleged or proven that any such termination was to avoid benefits otherwise available
to the Participant under this Agreement.

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	7.	 	Withholding. All distributions of cash under this Agreement are subject to
withholding, and WRLP shall withhold all applicable taxes with respect to distributions under
this Agreement and the Participant otherwise agrees to comply with all laws applicable to the
withholding or payment of taxes applicable to payments of cash or issuances or vesting of
Restricted Stock under this Agreement.
	 
	8.	 	Counterparts. This Agreement may be executed in any number of counterparts, all of
which together shall constitute one and the same agreement.
	 
	9.	 	Further Assurances. Each party agrees to execute, acknowledge and deliver any other
agreements, documents or instruments and to take such other action as may reasonably be
required to carry out the intents and purposes of this Agreement.
	 
	10.	 	Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of Delaware, without regard to the conflict of law provisions of any
state or other jurisdiction.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement as of the date set
forth above.

	 	 	 	 	 
	 	THE PARTICIPANT:

 	 
	 	/s/ Gary R. Dalke
 	 
	 	Name:  	Gary R. Dalke 	 
	 	 	 
	 
	 	THE COMPANY:

RHC HOLDINGS, L.P.

 	 
	 	By:  	WRC Refining Company, its general partner
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                         /s/ Paul L. Foster
 	 
	 	 	Name:  	Paul L. Foster 	 
	 	 	Title:  	President 	 
	 
	 	WNR:

WESTERN REFINING, INC.

 	 
	 	By:  	/s/ Paul L. Foster
 	 
	 	 	Name:  	Paul L. Foster 	 
	 	 	Title:  	President 	 
	 
	 	WRLP:

WESTERN REFINING COMPANY, L.P.

 	 
	 	By:  	Refinery Company, L.C., its general partner
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                         /s/ Paul L. Foster
 	 
	 	 	Name:  	Paul L. Foster 	 
	 	 	Title:  	President 	 
	 

5exv10w20

 

Exhibit 10.20

WESTERN REFINING LONG-TERM INCENTIVE PLAN

RESTRICTED STOCK GRANT AGREEMENT

     This RESTRICTED STOCK GRANT AGREEMENT (this “Agreement”) is made as of the ___day of
                    , 20___(the “Grant Date”), between Western Refining, Inc., a Delaware corporation (the
“Company”), and                                          (“Participant”).

     1. Grant of Restricted Shares. To carry out the purposes of the Western Refining,
Long-Term Incentive Plan (the “Plan”), and subject to the conditions described in this Agreement
and the Plan, the Company hereby grants to Participant all rights, title and interest in the record
and beneficial ownership of                                          (                    ) shares (the “Restricted Shares”) of common
stock, $0.01 par value per share, of the Company (“Common Stock”). The grant of such Restricted
Shares shall be effective as of the Grant Date. All capitalized terms not otherwise defined herein
shall have the meanings set forth in the Plan, the terms of which are incorporated herein by
reference. The Plan and this Agreement shall be administered by the Compensation Committee of the
Board of Directors of the Company (the “Committee”).

     2. Issuance and Transferability. The Restricted Shares may be evidenced in such a
manner as the Committee shall deem appropriate. Any certificates representing the Restricted
Shares granted hereunder shall be issued in the name of the Participant pursuant to the terms of
the Plan as of the Grant Date and shall be marked with the following legend:

“The shares represented by this certificate have been issued
pursuant to the terms of the Western Refining Long-Term
Incentive Plan and may not be sold, pledged, transferred,
assigned or otherwise encumbered in any manner except as is set
forth in the terms of the Restricted Stock Grant Agreement dated
                    .”

Until restrictions lapse, the Restricted Share certificates shall be left on deposit with the
Company along with a stock power (substantially in the form attached thereto as Exhibit A)
endorsed in blank and shall not be transferable except by will or the laws of descent and
distribution or pursuant to a domestic relations order. No right or benefit hereunder shall in any
manner be liable for or subject to any debts, contracts, liabilities or torts of Participant. Any
purported assignment, alienation, pledge, attachment, sale, transfer or other encumbrance of the
Restricted Shares, prior to the lapse of restrictions, that does not satisfy the requirements
hereunder shall be void and unenforceable against the Company. Notwithstanding the foregoing, in
the case of Participant’s Disability or death, Participant’s rights under this Agreement may be
exercised by Participant’s guardian or legal representative.

     3. Vesting/Forfeiture. Participant shall vest in his rights under the Restricted
Shares, and the Company’s right to reclaim such shares or dividends shall lapse with respect to
33.33% of the Restricted Shares, on each of the first, second and third anniversaries of the Grant
Date (the “Vesting Dates”), provided that Participant remains continuously employed by the Company
from the Grant Date to such Vesting Date. Notwithstanding the foregoing, all Restricted Shares not
then vested shall vest immediately if Participant’s employment with the Company terminates due to

 

 

Participant’s Disability or death. In the event of a Change of Control, the Committee may, in its
sole discretion, accelerate vesting. If Participant’s employment with the Company terminates other
than by reason of Disability or death, the Restricted Shares (to the extent not then vested) shall
be forfeited as of the date Participant’s employment so terminates. As soon as administratively
feasible following the vesting of the Restricted Shares, a Common Stock certificate evidencing the
vested Restricted Shares, less the amount of Common Stock withheld pursuant to paragraph 6 hereof,
shall be delivered without charge to the Participant, or Participant’s designated representative,
free of all restrictions.

     4. Ownership Rights/Dividends. Participant shall be entitled to all voting rights
applicable to the Restricted Shares. Any cash dividends that may be paid on the Restricted Shares
after the Grant Date shall be paid to the Participant (reduced by the amount of any taxes required
to be withheld with respect to such payment) in the same manner as the payment of dividends to the
holders of unrestricted Common Stock.

     5. Employment Relationship. For purposes of this Agreement, Participant shall be
considered to be in the employment of the Company as long as Participant remains an Employee of
either the Company, a parent or subsidiary corporation (as defined in section 424 of the Code) of
the Company, or a corporation or a parent or subsidiary of such corporation assuming this
Agreement. Any question as to whether and when there has been a termination of such employment,
and the cause of such termination, shall be determined by the Committee in its sole discretion, and
its determination shall be final.

     6. Withholding of Taxes. The Company shall have the right to take any action as may
be necessary or appropriate to satisfy any federal, state or local tax withholding obligations,
including, but not limited to, the right to withhold cash or shares of Common Stock sufficient to
pay the amount required to be withheld and to cause such Common Stock to be sold and the proceeds
remitted to the Company. In the event that the proceeds of such sale shall exceed the legally
required withholding amount, the Company shall remit the difference in cash to Participant. In the
event that the proceeds of such sale are less than the legally required withholding amount, the
Company may withhold the difference from any cash or Common Stock then or thereafter payable to
Participant. Participant agrees that, if Participant makes an election under Section 83(b) of the
Code with regard to the Restricted Shares, Participant will so notify the Company in writing within
two (2) days after making such election, so as to enable the Company to timely comply with any
applicable governmental reporting requirements.

     7. Reorganization of the Company. The existence of this Agreement shall not affect
in any way the right or power of the Company or its stockholders to make or authorize any or all
adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure
or its business; any merger or consolidation of the Company; any issuance of bonds, debentures,
preferred or prior preference stock ahead of or affecting the Common Stock or the rights thereof;
the dissolution or liquidation of the Company; any sale or transfer of all or any part of its
assets or business; or any other corporate act or proceeding, whether of a similar character or
otherwise.

     8. Recapitalization Events. In the event of stock dividends, spin-offs of assets or
other extraordinary dividends, stock splits, combinations of shares, recapitalizations, mergers,
consolidations, reorganizations, liquidations, issuances of rights or warrants and similar
transactions or events involving the Company (“Recapitalization Events”), then for all purposes
references

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herein to Common Stock or to Restricted Shares shall mean and include all securities or other
property (other than cash) that holders of Common Stock are entitled to receive in respect of
Common Stock by reason of each successive Recapitalization Event, which securities or other
property (other than cash) shall be treated in the same manner and shall be subject to the same
restrictions as the underlying Restricted Shares.

     9. Status of Common Stock. If required, the Company will register for issuance under
the Securities Act of 1933, as amended (the “Act”), the shares of Common Stock acquired pursuant to
this Agreement and keep such registration effective. In the absence of such effective
registration or an available exemption from registration under the Act, issuance of shares of
Common Stock acquired pursuant to this Agreement will be delayed until registration of such shares
is effective or an exemption from registration under the Act is available. The Company intends to
use its reasonable efforts to ensure that no such delay will occur. In the event exemption from
registration under the Act is available, Participant (or the person permitted to receive
Participant’s shares in the event of Participant’s incapacity or death), if requested by the
Company to do so, will execute and deliver to the Company in writing an agreement containing such
provisions as the Company may require assuring compliance with applicable securities laws. The
Company shall incur no liability to Participant for failure to register the Common Stock or
maintain the registration.

     Participant agrees that the shares of Common Stock, which Participant may acquire pursuant to
this Agreement, will not be sold or otherwise disposed of in any manner that would constitute a
violation of any applicable securities laws, whether federal or state. Participant also agrees (i)
that the certificates representing such shares of Common Stock may bear such legend or legends as
the Committee deems appropriate in order to assure compliance with applicable securities laws, (ii)
that the Company may refuse to register the transfer of the shares of Common Stock acquired
pursuant to this Agreement on the stock transfer records of the Company if such proposed transfer
would, in the opinion of counsel satisfactory to the Company, constitute a violation of any
applicable securities law and (iii) that the Company may give related instructions to its transfer
agent, if any, to stop registration of the transfer of such shares.

     10. Severability. In the event that any provision of this Agreement shall be held
illegal, invalid or unenforceable for any reason, such provision shall be fully severable and shall
not affect the remaining provisions of this Agreement, and this Agreement shall be construed and
enforced as if the illegal, invalid or unenforceable provision had never been included herein.

     11. Certain Restrictions. By executing this Agreement, Participant acknowledges that
Participant will enter into such written representations, warranties and agreements and execute
such documents as the Company may reasonably request in order to comply with the terms of this
Agreement, the Plan, any securities laws or any other applicable laws, rules or regulations.

     12. Amendment and Termination. Except as otherwise provided in the Plan or this
Agreement, no amendment or termination of this Agreement shall be made by the Company without the
written consent of the Participant.

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     13. No Guarantee of Tax Consequences. The Company makes no commitment or guarantee
to Participant that any federal or state tax treatment will apply or be available to any person
eligible for benefits under this Agreement.

     14. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
any successors to the Company and all persons lawfully claiming under Participant.

     15. Governing Law and Venue. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Texas, without regard to any principles of conflicts of
law. The courts in Dallas County, Texas shall be the exclusive venue for any dispute regarding the
Plan or this Agreement.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its officer
thereunto duly authorized, and Participant has executed this Agreement, all as of the day and year
first above written.

WESTERN REFINING, INC.

	 	 	 	 	 	 	 
	By:

	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 
	Name:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	PARTICIPANT:	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Date:	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address:	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

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Exhibit A

COMMON STOCK POWER

     FOR VALUE RECEIVED,                     (“Transferor”) hereby sells, assigns and
transfers unto Western Refining, Inc.
                                
shares of the common stock, no par value
(“Common Stock”), of Western Refining, Inc., a Delaware corporation (the
“Company”), which shares of Common Stock are represented by certificate no(s).                    ,
and hereby irrevocably appoints                                          as attorney-in-fact to transfer such shares of
Common Stock on the books of the Company, with full power of substitution on the premises.

	 	 	 
	Dated:
	 	 
	 

	 	 

	 	 	 
	TRANSFEROR:
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	Printed Name:

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