Document:

TLLP EX.10.9 12.31.2011

Exhibit 10.9

2012 Incentive Compensation Program

On February 7, 2012, the Chairman of the Board and independent directors, acting pursuant to authority delegated by the Board of Directors (the "Board"), approved the participation of Tesoro Logistics GP, LLC's (the "Company") President and Vice President of Operations in the Tesoro Corporation 2012 Incentive Compensation Program (the "2012 ICP" or the "2012 Program"). In addition, the Board approved the target payout for such officers. The 2012 Program consists of two equally weighted components: Tesoro Corporation's overall performance and Business Unit performance outlined below. The performance results of Tesoro Corporation and the individual business units may be adjusted to take into account unbudgeted business decisions, unusual or non-recurring items, and other factors, as approved by Tesoro Corporation's Compensation Committee, to determine the total amount, if any, available under the 2012 ICP. The Chairman of the Board and independent directors of the Company have discretion to adjust individual awards, if any, for Company executives based on their assessment of an individual executive's performance relative to successful achievement of goals, business plan execution and other leadership attributes.

Component 1 - Corporate Performance - weighted as 50% of total bonus opportunity measured against target with the range of outcomes between 0% to 200%. Tesoro Corporation performance metrics include the following:

		
	•
	Achievement of Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") measured on a margin neutral basis (this is the more heavily weighted metric, constituting 50% of the bonus opportunity for the corporate performance component);

		
	•
	Safety - Targeted improvement in recordable incidents;

		
	•
	Process Safety Management - Targeted improvement in the number of process safety incidents;

		
	•
	Environmental - Targeted improvements in the number of environmental incidents; and

		
	•
	Cost Management - Measurement of non-capital cash expenditure versus budget (this metric constitutes 35% of the bonus

opportunity for the corporate performance component).

Component 2 - Business Unit Performance - weighted as 50% of total bonus opportunity measured against target with the range
of outcomes between 0% to 200%. Business Unit performance is measured through balanced scorecards with performance metrics
including, but not limited to:

		
	•
	Safety and Environmental;

		
	•
	Cost Management;

		
	•
	Improvements in EBITDA; and

		
	•
	Business improvement and value creation initiatives.TLLP EX.10.11 12.31.2011

Exhibit 10.11

AMENDMENT NO. 1 TO
OMNIBUS AGREEMENT
 
This Amendment No. 1, dated as of February 28, 2012 (this "Amendment"), to that certain Omnibus Agreement, dated as of April 26, 2011 (the "Omnibus Agreement"), by and among the parties thereto, is hereby adopted, executed and agreed to by and among Tesoro Corporation ("Tesoro"), Tesoro Refining and Marketing Company, Tesoro Companies, Inc., Tesoro Alaska Company, Tesoro Logistics LP, and Tesoro Logistics GP, LLC (each a "Party" and, collectively, the "Parties").  Capitalized terms used but not defined herein shall have the respective meanings given to such terms in the Omnibus Agreement.
 
WHEREAS, the Parties desire to amend the Omnibus Agreement in the manner herein provided in order to reflect the original intent of the Parties with respect to the allocation of certain severance and change-of-control benefits; and

WHEREAS, Section 9.5 of the Omnibus Agreement provides that the Omnibus Agreement may be amended or modified from time to time only by written agreement of all the Parties.
 
NOW, THEREFORE, in consideration of the premises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 
 
SECTION 1.Amendment to the Omnibus Agreement. 

(a)The introductory portion of Section 4.1(c) of the Omnibus Agreement is hereby amended and restated in its entirety as follows:

"(c) The Partnership Group shall reimburse Tesoro for all other direct or allocated costs and expenses incurred by Tesoro and its Affiliates on behalf of the Partnership Group, including, but not limited to the following; provided, however, that the costs and expenses described in subsections (i) through (vi) below shall not apply with respect to employees of the General Partner, Tesoro or its Affiliates that are providing the services listed on Schedule IV:"

(b)Section 4.1(c)(ii) of the Omnibus Agreement is hereby amended and restated in its entirety as follows:

"(ii)  except as otherwise provided in Section 4.1(c)(vi) below, the cost of employee benefits relating to employees of the General Partner, Tesoro or its Affiliates, including 401(k), pension, bonuses and health insurance benefits (but excluding Tesoro stock-based compensation expense), to the extent, but only to the extent, such employees perform services for the Partnership Group, provided that for employees that do not devote all of their business time to the Partnership Group, such expenses shall be based on the annual weighted average of time spent and number of employees devoting their services to the Partnership Group;"

(c)The following clause (vi) is hereby added to Section 4.1(c): 
 
"(vi)  any severance or similar amounts ("Severance Amounts") due to the President of the General Partner or the Vice President, Logistics of the General 

Partner in the event of a Change of Control (or similar term, in each case as defined in the applicable management stability agreement) of Tesoro under the terms of their respective management stability agreements with Tesoro, provided that such reimbursement shall be based on the percentage of time spent by such employee on the business of the Partnership Group during the last completed payroll period immediately preceding the date of such Change of Control. Notwithstanding anything in this Agreement to the contrary, in no event will the Partnership Group reimburse Tesoro for, or otherwise in any way be responsible for, (A) any Severance Amounts due to any employee of the General Partner, Tesoro or its Affiliates (other than the President of the General Partner or the Vice President, Operations of the General Partner) in the event of a Change of Control (or similar term, in each case as defined in the applicable Employment Agreement) of Tesoro, or (B) any Tesoro stock-based compensation expense related to accelerated vesting of Tesoro equity awards.  For the purposes of this Section 4.1(c)(vi), the term "Employment Agreement" shall include any employment agreement, management stability agreement or similar agreement between Tesoro and any employee of the General Partner, Tesoro or its Affiliates."
 
SECTION 2.Effective Date.  Notwithstanding anything in this Amendment to the contrary, this Amendment is effective for all purposes as of the Closing Date.

SECTION 3.Effect of Amendment.  Except as amended hereby, the Omnibus Agreement shall remain in full force and effect as previously executed.

SECTION 4.Governing Law.  This Amendment shall be governed by, and construed in accordance with, the laws of the State of Texas, excluding any conflicts-of-law rule or principle that might refer the construction or interpretation of this Amendment to the laws of another state. 

SECTION 5.Counterparts.  This Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same instrument.  Delivery of an executed signature page of this Amendment by facsimile transmission or in portable document format (.pdf) shall be as effective as delivery of a manually executed counterpart hereof.

[Remainder of page intentionally left blank]

IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first above written.
TESORO CORPORATION

By:    /s/ CHARLES S. PARRISH    
Charles S. Parrish
Executive Vice President, General Counsel and Secretary

TESORO REFINING AND MARKETING COMPANY

By:    /s/ CHARLES S. PARRISH    
Charles S. Parrish
Executive Vice President and Secretary

TESORO COMPANIES, INC.

By:    /s/ CHARLES S. PARRISH    
Charles S. Parrish
Executive Vice President, General Counsel and Secretary

TESORO ALASKA COMPANY

By:    /s/ CHARLES S. PARRISH    
Charles S. Parrish
Executive Vice President, General Counsel and Secretary

[Signature Page to Amendment No. 1 to Omnibus Agreement]

TESORO LOGISTICS LP

		
	By:
	Tesoro Logistics GP, LLC,

its general partner

By:    /s/ PHILLIP M. ANDERSON        
Phillip M. Anderson
President

TESORO LOGISTICS GP, LLC

By:    /s/ PHILLIP M. ANDERSON    
Phillip M. Anderson
President

[Signature Page to Amendment No. 1 to Omnibus Agreement]TLLP EX.10.16 12.31.2011

Exhibit 10.16

FIRST AMENDMENT TO AMENDED AND RESTATED 
TRUCKING TRANSPORTATION SERVICES AGREEMENT
This FIRST AMENDMENT TO AMENDED AND RESTATED TRUCKING TRANSPORTATION SERVICES AGREEMENT (this "First Amendment") is dated as of February 27, 2012, but effective as of the dates set forth herein, by and between Tesoro Logistics Operations LLC, a Delaware limited liability company ("TLO"), and Tesoro Refining and Marketing Company, a Delaware corporation ("TRMC"), collectively referred to as "Parties," and each individually, as a "Party," and amends that certain Trucking Transportation Services Agreement between the Parties dated as of April 26, 2011, as previously amended and restated by the Amended and Restated Trucking and Transportation Services Agreement dated December 2, 2011 (as so amended and restated, the "Trucking TSA"). 
 The Parties desire to amend the Trucking TSA to substitute Schedule II attached hereto for Schedule II attached to the existing Trucking TSA, effective as of January 1, 2012.  Therefore, for valuable consideration received, the Parties do hereby replace Schedule II of the Trucking TSA with Schedule II attached hereto, effective as of the date set forth above.
The Trucking TSA, shall remain in full force and effect in accordance with its terms, as amended herein.  
IN WITNESS WHEREOF, the Parties hereto have duly executed this First Amendment as of the date first written above.
	
			
	 
	TESORO REFINING AND MARKETING COMPANY

	 
	 
	 

	 
	By:
	/s/ GREGORY J. GOFF

	 
	 
	Gregory J. Goff

	 
	 
	President

	 
	 
	 

	 
	 
	 

	 
	TESORO LOGISTICS OPERATIONS LLC

	 
	 
	 

	 
	By:
	TESORO LOGISTICS LP,

	 
	 
	its sole member

	 
	 
	 

	 
	By:
	TESORO LOGISTICS GP, LLC,

	 
	 
	its general partner

	 
	 
	 

	 
	By:
	/s/ PHILLIP M. ANDERSON

	 
	 
	Phillip M. Anderson

	 
	 
	President

                

SCHEDULE II

TRUCKING RATES*   (in dollars per barrel)
	
				
	Miles 
(round to next highest mile)
	Mileage Rate
	Dispatch Fee for the first 700,000 bbls in each Month
	Dispatch Fee for Volumes above 700,000 bbls in each Month

	0 - 10
	1.99
	0.50
	0.05

	10 - 20
	2.04
	0.50
	0.05

	20 - 25
	2.17
	0.50
	0.05

	25 - 30
	2.26
	0.50
	0.05

	30 - 35
	2.44
	0.50
	0.05

	35 - 40
	2.56
	0.50
	0.05

	40 - 45
	2.74
	0.50
	0.05

	45 - 50
	2.86
	0.50
	0.05

	50 - 55
	3.37
	0.50
	0.05

	55 - 60
	3.6
	0.50
	0.05

	60 - 65
	3.79
	0.50
	0.05

	65 - 70
	3.87
	0.50
	0.05

	70 - 75
	4.01
	0.50
	0.05

	75 - 80
	4.06
	0.50
	0.05

	80 - 85
	4.17
	0.50
	0.05

	85 - 90
	4.21
	0.50
	0.05

	90 - 95
	4.35
	0.50
	0.05

	95 - 100
	4.41
	0.50
	0.05

	100 - 110
	5.55
	0.50
	0.05

	110 - 120
	5.67
	0.50
	0.05

	120 - 130
	5.82
	0.50
	0.05

	130 - 140
	5.94
	0.50
	0.05

	140 - 150
	6.16
	0.50
	0.05

*  Total Rates will be the sum of the Mileage Rate plus applicable Dispatch Fees.  Mileage Rates for hauls over 150 miles will be increased $0.20/bbl for every ten (10) miles over 150 miles.  All mileages shall be based upon actual miles in shipments, rounded to the next highest mile.  Mileages shall be as agreed upon for individual receipt and delivery locations, using the shortest standard routes practically available, provided that if weather or road conditions or local authorities require longer routes for specific deliveries, TLO may charge for actual mileage.  In accordance with standard industry practices, all rates shall be based on a minimum 200 barrel load, and any load under 200 barrels shall be charged at a 200 barrel load minimum.  Mileage Rates include a component for fuel costs, which will be adjusted monthly as provided herein, with such fuel cost adjustment being apportioned to change overall Mileage Rates in the same ratio that TLO's fuel costs bear to all of TLO's costs embedded in the Mileage Rates. 

Schedule II                                          (Effective 01/01/2012)

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