Document:

Exhibit

Exhibit 10.149
AMENDMENT AGREEMENT TO LONG TERM INCENTIVE AWARD 
This Amendment Agreement (this “Agreement”) hereby amends the Long-Term Incentive Award previously entered into by Don Sorensen (“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 $50,000, 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 Market Stock Unit Awards and 2018, 2017, and 2016 Phantom Units Awards; provided, however, that the “Covenants,” set forth in subsection (i) in the Market Stock Unit Award agreements shall be superseded and replaced by Paragraph 3(d) below and a new subsection “Noncompetition” shall be added to the Phantom Units 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 Units 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.  
d)    Employee agrees that he will not, for a period of one year following the Termination Date, directly or indirectly, serve as an officer, director, owner, contractor, 

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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.   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 Market Stock Unit Award; (iii) 2018 Phantom Units Award; (iv) 2017 Market Stock Unit Award; (v) 2017 Phantom Units Award; (vi) 2016 Market Stock Unit Award; and (vii) 2016 Phantom Units 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 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 

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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 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 

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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. 

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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/ Don Sorensen

	 
	 
	 
	 
	DON SORENSEN

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

6Exhibit

Exhibit 10.150

TESORO LOGISTICS GP, LLC NON-MANAGEMENT DIRECTOR COMPENSATION 
POLICY AND DIRECTOR EQUITY AWARD TERMS
Effective January 1, 2019
Directors of Tesoro Logistics GP, LLC (the “Company”) who are not employed by the Company or one of its subsidiaries or affiliates (“Non-Management Directors”) shall receive compensation for their services on the Board of Directors of the Company (the “Board”) and related committees as set forth below.
The equity awards set forth herein will be made from the Andeavor Logistics LP 2011 Long-Term Incentive Plan or any successor plan approved by the Board (the “Plan”). This Policy shall apply to those awards made in denominations of common units and other similar awards granted to Non-Management Directors under the Plan.
The Plan and this Policy are intended to conform to the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and the Department of Treasury Regulations and other interpretive guidance issued thereunder (“Section 409A”), and, in all respects, shall be administered and construed in accordance with such requirements.
The Non-Management Director Compensation Package of the Company is as follows:

	
			
	 

	 
	 
	 

	TESORO LOGISTICS GP, LLC
Non-Management Director Compensation Package

	Annual Board Retainer (Cash)
	 
	$90,000

	Annual Director Deferred Phantom Unit Equity Award
	 
	$110,000

	Total Annual Compensation Package – Exclusive of Chair Retainers
	 
	$200,000

	 
	 

	Audit Committee Annual Chair Retainer (Cash)
	 
	$15,000

	Conflicts Committee Annual Chair Retainer (Cash)
	 
	$15,000

	Lead Director Annual Retainer (Cash)
	 
	$15,000

	General Partner Board Observer Retainer (Cash)
	 
	$62,500

Effective January 1, 2019, members of the Conflicts Committee will also receive a meeting fee in the amount of $1,500 per meeting for each Conflicts Committee meeting such member attends in a calendar year in excess of six meetings.
Both the Deferred Phantom Unit Equity Awards (“Phantom Units”) and the Cash Retainer component of Non-Management Director Compensation shall be awarded or paid, as the case may be, to each Non-Management Director on a quarterly basis, with each installment being equal to one-fourth of the annualized amount set forth above. At the commencement of each calendar quarter, each Non-Management Director then in office will automatically receive an award under the Plan of a number of Phantom Units, including any fractional Phantom Units, determined as set forth herein and such awards will bear a grant date of the 

first trading day of such quarter. All equity awards under this Policy shall be automatically deferred until the receiving Non-Management Director separates from service on the Board. The Board, Committee Chair, Lead Director and General Partner Board Observer Cash Retainer component of Non-Management Director Compensation will be paid on a quarterly basis, with a check cut or direct deposit made at the inception of each quarter in the amount one-fourth of the annualized amount set forth above.
All expenses incurred by Non-Management Directors to attend meetings of the Board and related committees, and otherwise attend to Company business will either be fully paid or reimbursed by the Company.
Notwithstanding the foregoing, to the extent the initial effective date of this Policy fell after the first trading day of a calendar quarter, each Non-Management Director who was in office upon the effective date of this Policy received a pro-rated quarterly Phantom Unit award for such calendar quarter, with the grant date of such Phantom Unit award being the initial effective date of this Policy, and a pro-rated quarterly Board and Committee Cash Retainer payment, as applicable. Further, any new Non-Management Director who commences service during any calendar quarter and after the beginning of such calendar quarter shall receive a pro-rated Phantom Unit award for such calendar quarter, with the grant date of such Phantom Unit award being the date of commencement of service on the Board, and a pro-rated quarterly Board, Committee and other Cash Retainer payment, as applicable.  In each case, pro-ration will be calculated based on the number of days that the Non-Management Director is expected to serve on the Board during such calendar quarter relative to the total number of days in such calendar quarter.
Effective January 1, 2019, the number of Phantom Units subject to each quarterly award shall be determined by dividing $27,500, or such other pro-rated amount as applicable, by the closing market price of Andeavor Logistics LP common units as reported on the Consolidated Tape System on the grant date. The number of Phantom Units, including any fractional Phantom Units, will be recorded in an unfunded and unsecured deferred compensation bookkeeping account in the Non-Management Director’s name. To the extent cash distributions are paid to common unit holders of Andeavor Logistics LP, additional Phantom Units, including any fractional Phantom Units, will accrue within the Director’s deferred compensation account in recognition of the value of such distributions and shall be subject to the same automatic deferral and restrictions, terms and conditions as the underlying Phantom Units.
Each Phantom Unit held in a Non-Management Director’s accumulated deferred compensation account will increase or decrease in value by the same amount and with the same frequency as the fair market value of a common unit of Andeavor Logistics LP.
In the event of a reorganization, recapitalization, unit equity split, dividend, combination of equity units, merger, consolidation, rights offering or any other change in the legal entity structure, the number and kind of Phantom Units credited to each Non-Management Director’s accumulated deferred compensation account shall be adjusted accordingly.
The deferred Phantom Units shall vest in full upon the Non-Management Director’s separation from service on the Board. Upon a Non-Management Director’s separation from service on the Board for any reason other than death, the Phantom Units in the Non-Management Director’s account shall be settled on the first day of the calendar month following the expiration of 45 days after such separation from service and such Non-Management Director will receive unrestricted issued Andeavor Logistics LP common units in place of the total accumulated Phantom Units in his or her deferred compensation account balance.
Upon a Non-Management Director’s separation from service on the Board on account of death, the Phantom Units in his or her deferred compensation account shall be fully vested. Unrestricted issued Andeavor 

Logistics LP common units will be transferred to the Non-Management Director’s designated beneficiary either in February of the year following such Non-Management Director’s death or on the first day of the calendar month following the expiration of 45 days after the Non-Management Director’s death, whichever is earlier. If there is no valid beneficiary designation by the Non-Management Director, or if the designated beneficiary or beneficiaries fail to survive the Non-Management Director or otherwise fail to take the unrestricted issued Andeavor Logistics LP common units, the Non-Management Director’s beneficiary shall be the Non-Management Director’s surviving spouse or, if there is no surviving spouse, the Non-Management Director’s estate. Otherwise, Non-Management Directors may not sell, transfer, assign, pledge or otherwise encumber any portion of the Phantom Units and any attempt to sell, transfer, assign, pledge or encumber any portion of the Phantom Units shall have no effect. In order to ensure that Tesoro Logistics GP, LLC Board members bear the full risks of unit ownership, Tesoro Logistics GP, LLC Directors are prohibited from hedging transactions related to Andeavor Logistics LP common units or pledging or creating a security interest in any Andeavor Logistics LP common units.
Each Phantom Unit award made under this Policy to Non-Management Directors shall be subject to the terms and conditions of this Policy and the Plan, and this Policy and the Plan shall serve as the governing award agreement and shall evidence the grants and awards made pursuant to this Policy. The Board may amend or terminate this Policy at any time as set forth under the Plan other than an amendment which would cause any outstanding award or distribution to fail to comply with Section 409A. This Policy is subject to the terms and conditions of the Plan and any terms or conditions not specifically set forth or provided within this Policy shall be governed by the Plan, including but not limited to the provisions required to comply with Section 409A, in particular: “separation from service” as used under this Policy shall have the same meaning as used under Section 409A; and those provisions regarding distributions to “specified employees” under Section 409A shall apply to distributions under this Policy.
Notwithstanding any provision of this Policy to the contrary, to the extent any reimbursement or in-kind benefit provided under this Policy is nonqualified deferred compensation within the meaning of Section 409A: (1) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year; (2) the reimbursement of an eligible expense must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred; and (3) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

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