Document:

exh10-15.htm

    Exhibit
10.15

     

    SEMGROUP
ENERGY PARTNERS G.P., L.L.C.

    LONG-TERM
INCENTIVE PLAN

    

    EMPLOYEE
PHANTOM UNIT AGREEMENT

     

    This
Phantom Unit Agreement (“Agreement”) between SemGroup Energy Partners G.P.,
L.L.C. (the “Company”) and [___________] (the “Participant”), regarding an award
(“Award”) of 30,000 Phantom Units (as defined in the SemGroup Energy Partners
G.P., L.L.C. Long-Term Incentive Plan (the “Plan”)) granted to the Participant
on March __, 2009 (the “Grant Date”), such number of Phantom Units subject to
adjustment as provided in the Plan, and further subject to the following terms
and conditions:

     

    1. Relationship to
Plan.  This Award is subject to all of the terms, conditions
and provisions of the Plan and administrative interpretations thereunder, if
any, which have been adopted by the Committee thereunder and are in effect on
the date hereof.  Except as otherwise provided herein, capitalized
terms shall have the same meanings ascribed to them under the Plan.

     

    2. Definitions.

     

    “Cause” means (i) conviction
of the Participant by a court of competent jurisdiction of any felony or a crime
involving moral turpitude; (ii) the Participant’s willful and intentional
failure or willful and intentional refusal to follow reasonable and lawful
instructions of the Board; (iii) the Participant’s material breach or default in
the performance of his obligations under this Agreement; or (iv) the
Participant’s act of misappropriation, embezzlement, intentional fraud or
similar conduct involving the Company or any of its Affiliates.

    

    “Disability” means the
Participant either (i) is unable to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment that can
be expected to result in death or can be expected to last for a continuous
period of not less than 12 months or (ii) the Participant is, by reason of any
medically determinable physical or mental impairment that can be expected to
result in death or can be expected to last for a continuous period of not less
than 12 months, receiving income replacement benefits for a period of not less
than three months under an accident and health plan covering employees of the
Company or any entity that would be considered a single “service recipient” with
the Company pursuant to Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”).

     

    3. Vesting
Schedule.

     

    (a) This
Award shall vest and the Restricted Period with respect to the Phantom Units
subject thereto shall end in installments in accordance with the following
schedule:

     

    
      	
              Vesting
      Date

            	 
      	
              Vested
      Increment

            	 
      	
              Total
      Vested Percentage

            
	
              March
      __, 2010

            	 
      	
              33
      %

            	 
      	
               33
      %

            
	
              March
      __, 2011

            	 
      	
              33
      %

            	 
      	
               66
      %

            
	
              March
      __, 2012

            	 
      	
              34
      %

            	 
      	
               100%

            

    

    

    The
number of Phantom Units that vest as of each date described above will be
rounded down to the nearest whole Phantom Unit, with any remaining Phantom Units
to vest with the final installment.  The Participant must be
continuously employed with the Company or any of its Affiliates from the Grant
Date through the applicable vesting date in order for the Award to become vested
with respect to additional Phantom Units on such date.

     

    (b) Notwithstanding
the limitations set forth in subparagraph (a) above, all Phantom Units
subject to this Award shall vest upon the occurrence of a Change of Control
following the Grant Date, provided that the Participant has been continuously
employed with the Company or any of its Affiliates since the Grant
Date.

     

    (c) Within 60
days following vesting with respect to a Phantom Unit, the Participant shall be
entitled to receive a Common Unit.  Common Units will be evidenced, at
the sole option and in the sole discretion of the Committee, either (i) in
book-entry form in the Participant’s name in the Common Unit register of the
Partnership maintained by the Partnership’s transfer agent or (ii) a unit
certificate issued in the Participant’s name.  Upon delivery of a
Common Unit in respect of a Phantom Unit, such Phantom Unit shall cease to be
outstanding in the Participant’s notional account described below in
Section 5.

     

    4. Forfeiture of
Award.

     

    (a) If the
Participant’s employment with the Company and all Affiliates is terminated by
Participant’s employer without Cause, or by reason of death or Disability, all
unvested Phantom Units shall immediately vest and the Restricted Period shall
terminate as of the date of the Participant’s termination.

     

    (b) If the
Participant’s employment with the Company and all Affiliates terminates for any
reason not described in Section 4(a), all unvested Phantom Units shall be
immediately forfeited as of the date of the Participant’s
termination.

     

    5. Distribution Equivalent
Rights.  During the Restricted Period, the Award of Phantom
Units hereunder shall be evidenced by entry in a bookkeeping account and may
include a tandem Distribution Equivalent Right with respect to the Phantom
Units.  For each fiscal quarter of the Partnership in which the
Partnership’s quarterly cash distribution to its subordinated and common
unitholders for such quarter equals or exceeds $0.39 per unit (or $1.56 per unit
on an annualized basis), the Phantom Units shall have a tandem Distribution
Equivalent Right.  Pursuant to the Distribution Equivalent Right,
within 45 days following the end of each fiscal quarter for which a cash
distribution is made with respect to Common Units, the Participant shall be
entitled to receive a cash payment with respect to each Phantom Unit then
outstanding equal to the cash distribution made by the Partnership with respect
to each Common Unit.

     

    6. Rights as Unitholder; Delivery of
Common Units.  Until delivery of Common Units as described in
Section 3(c), the Participant shall have no rights as a unitholder as a
result of the grant of Phantom Units hereunder.  The Company shall not
be obligated to deliver any Common Units if counsel to the Company determines
that such sale or delivery would violate any applicable law or any rule or
regulations of any governmental authority or any rule or regulation of, or
agreement of the Company with, any securities exchange or association upon which
the Common Units are listed or quoted.  The Company shall in no event
be obligated to take any affirmative action in order to cause the delivery of
Common Units to comply with any such law, rule, regulations or
agreement.

     

    7. Purchase for
Investment.  The Phantom Units covered by this Agreement and
the Common Units deliverable pursuant to Section 3(c) have not been registered
under the Securities Act of 1933, as amended (the “Act”).  The
Participant represents and warrants that, as of the date hereof, he (1) is an
“accredited investor” within the meaning of Rule 501 of Regulation D promulgated
by the Securities and Exchange Commission (the “Commission”) pursuant to the Act
and (2) is acquiring such Phantom Units and Common Units for his own account for
investment and not with a view to, or for sale in connection with, the
distribution of such Phantom Units or Common Units or any part
thereof.  The Participant may be required to execute such documents as
the Company determines are necessary and appropriate to effectuate the issuance
and transfer of the Common Units to the Participant.

     

    The certificates evidencing Common
Units issued pursuant to Section 3(c) of this Agreement will bear the following
legend or such other legend as determined by the Company:

     

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND
THE OFFER AND SALE OF SUCH SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 OR ANY STATE SECURITIES OR BLUE SKY
LAWS.  THESE SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE
OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT OR APPLICABLE
STATE SECURITIES OR BLUE SKY LAWS.  ADDITIONALLY, THE TRANSFER OF
THESE SECURITIES IS SUBJECT TO THE CONDITIONS SPECIFIED IN THE SEMGROUP ENERGY
PARTNERS G.P., L.L.C. LONG-TERM INCENTIVE PLAN, THE ASSOCIATED AWARD AGREEMENT,
THE PARTNERSHIP AGREEMENT AND ANY APPLICABLE UNITHOLDER AGREEMENT, AND NO
TRANSFER OF THESE SECURITIES SHALL BE VALID OR EFFECTIVE UNTIL SUCH CONDITIONS
HAVE BEEN FULFILLED.  COPIES OF SUCH PLAN, AWARD AGREEMENT,
PARTNERSHIP AGREEMENT AND APPLICABLE UNITHOLDER AGREEMENT MAY BE OBTAINED AT NO
COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE
SECRETARY OF THE ISSUER HEREOF.

     

    The
Company may also impose stop-transfer instructions with respect to any matter
contemplated by the Plan or Agreement.

     

    8. Receipt of
Information.  The Participant acknowledges that he has (a) had
access to SemGroup Energy Partners, L.P.’s (the “Partnership’s”) periodic
filings with the Commission, including the Partnership’s Annual Report on Form
10-K, Quarterly Reports on Form 10-Q, and Current Reports filed on Form 8-K
and (b) been provided a reasonable opportunity to ask questions of and receive
answers from representatives of the Partnership and the Company regarding such
matters sufficient to enable the Participant to evaluate the risks and merits of
entering into this Agreement.

     

    9. Assignment of
Award.  The Participant’s rights under this Agreement and the
Plan are personal; no assignment or transfer of the Participant’s rights under
and interest in this Award may be made by the Participant other than by will, by
beneficiary designation, by the laws of descent and distribution or by a
qualified domestic relations order.

     

    10. Withholding.  No
certificates representing Common Units hereunder shall be delivered to or in
respect of a Participant unless the amount of all federal, state and other
governmental withholding tax requirements imposed upon the Company with respect
to the issuance of such Common Units has been remitted to the Company or unless
provisions to pay such withholding requirements have been made to the
satisfaction of the Committee.  The Committee may make such provisions
as it may deem appropriate for the withholding of any taxes which it determines
is required in connection with this Award.  The Participant may pay
all or any portion of the taxes required to be withheld by the Company or paid
by the Participant in connection with the vesting of all or any portion of this
Award by delivering cash, or, with the Committee’s approval, by electing to have
the Company withhold Common Units, or by delivering previously owned Common
Units, having a Fair Market Value equal to the amount required to be withheld or
paid.  The Participant may only request the withholding of Common
Units having a Fair Market Value equal to the statutory minimum withholding
amount.  The Participant must make the foregoing election on or before
the date that the amount of tax to be withheld is determined.

     

    11. No Employment
Guaranteed.  No provision of this Agreement shall confer any
right upon the Participant to continued employment with the Company or any
Affiliate.

     

    12. Governing Law.  This
Agreement shall be governed by, construed, and enforced in accordance with the
laws of the State of Delaware.

     

    13. Amendment.  This
Agreement cannot be modified, altered or amended, except by an agreement, in
writing, signed by both the Company and the Participant.

     

    [signatures
on next page]

     

    

     

    SEMGROUP ENERGY PARTNERS G.P.,
L.L.C.

    

     

    Date:                                               By:                                                                                

     

    Name:                                                                                

     

    Title:                                                                                

     

    The
Participant hereby accepts the foregoing Agreement, subject to the terms and
provisions of the Plan and administrative interpretations thereof referred to
above.

     

    PARTICIPANT:

     

    

    Date:                                                      

    [____________]exh10-16.htm

    Exhibit 10.16

     

    August
19, 2008

     

    Mr. James
Griffin

     

    Via Hand
Delivery

     

    
      	
               
      

            	
              Re:

            	
              Retention
      Agreement

            

    

     

    Dear
James:

     

        As SemGroup
Energy Partners Management, Inc. (the “Company”) and
SemGroup Energy Partners G.P., L.L.C. (“SGGP”) believe it is
in the best interests of the Company, SGGP and SemGroup Energy Partners, L.P.
(“SGLP”) to
encourage you to remain in the employ of the Company, the Company hereby agrees,
and SGGP and SGLP guarantee, as of the date set forth above (the “Effective Date”), to
provide you retention payments totaling up to $180,000, which is equivalent to
1.2 times your current annual base salary, (your “Retention
Opportunity”), subject to the terms and conditions more fully set forth
below in this letter agreement (this “Agreement”).

     

    1. Retention
Payments.

     

                    (a) If you remain employed until October
30, 2008 (the “First
Retention Date”), you will be paid a lump sum retention payment equal to
$45,000, which is 25% of your Retention Opportunity, within 30 days
following the First Retention Date.

     

                    (b) If you remain employed until July 31,
2009 (the “Final
Retention Date”), you will be paid an additional lump sum retention
payment equal to $135,000, which is 75% of your Retention Opportunity, within 30
days following the Final Retention Date.

     

                    (c) If your employment is (1) terminated by
the Company other than for Cause prior to the Final Retention Date or (2)
voluntarily terminated by you for Good Reason, then you will be paid a lump sum
retention payment equal to your Retention Opportunity, reduced by the amount of
any payment you may have already received under Section 1(a) above, within 30
days following the date of your termination.   For purposes of
this Agreement, “Cause” means
termination of employment by the Company due to failure to perform your duties
in good faith, misconduct which violates a written company policy, breach of
this Agreement, gross negligence, dishonesty, or intentional acts detrimental or
destructive to the Company or its affiliates, employees or
property.  For purposes of this Agreement, “Good Reason” means
(i) a material reduction in the your base salary, (ii) a material diminution of
your duties, authority or responsibilities as in effect immediately prior to
such diminution or (iii) the relocation of the your principal work location to a
location more than 50 miles from its current location.  In order to be
eligible for payment on account of a Good Reason termination, you must: (i)
provide written notice to the Company within 90 days following the first event
or condition which gives rise to your claim of Good Reason under this section;
(ii) provide the Company 30 days from the date of such notice in which to “cure”
such event or condition and (iii) actually terminate employment within 30 days
following the expiration of the cure period described above.

     

                    (d) For the avoidance of doubt, if you
voluntarily terminate your employment other than for Good Reason or are fired
for Cause prior to the First Retention Date or the Final Retention Date, the
payments otherwise payable on any date following the date of your termination
will be forfeited.  For purposes of this Agreement, employment with
the Company or any affiliate shall be considered employment with the
Company.

     

    2. Confidentiality.  The
Company has provided and will continue to provide you with Confidential
Information regarding the Company and the Company’s business and has agreed to
make certain payments pursuant to Section 1 hereof.  In return for
this and the other consideration provided under this Agreement, you agree that
you will not disclose or make available to any other person or entity, or use
for your own personal gain, any Confidential Information, except for such
disclosures as required (i) by law or legal process, (ii) in the performance of
your obligations hereunder, (iii) in connection with the enforcement of your
rights under this Agreement, or (iv) in connection with the defense or
settlement of any claim, suit or action brought against you by the Company or
any other party; provided, however, that if disclosure of Confidential
Information is required pursuant to (i) or (iv) above, you shall give prompt
written notice to the Company of such requirement, disclose no more information
than is so required, and cooperate with any attempts by the Company to obtain a
protective order or similar treatment.  For purposes of this
Agreement, “Confidential
Information” shall mean any and all information, data and knowledge that
has been created, discovered, developed or otherwise become known to the Company
or in which property rights have been assigned or otherwise conveyed to the
Company, which information, data or knowledge has commercial value in the
business in which the Company is engaged, except such information, data or
knowledge as is or becomes known to the public without violation of the terms of
this Agreement.  By way of illustration, but not limitation,
Confidential Information includes business trade secrets, secrets concerning the
Company’s plans and strategies, nonpublic information concerning pending
investigations, disputes or litigation involving the Company, market information
pertaining to the Company or its operations, material market opportunities,
technical trade secrets, processes, formulas, know-how, improvements,
discoveries, developments, designs, inventions, techniques, marketing plans,
manuals, records of research, reports, memoranda, computer software, strategies,
forecasts, new products, unpublished financial statements or parts thereof,
budgets or other financial information, projections, licenses, prices, costs,
and employee, customer information, customer lists and supplier lists or parts
thereof.  The Company and you agree to use all reasonable means to
insure that this Agreement is kept confidential, except for disclosures required
by law.

     

    3. Withholding of
Taxes.  The Company may withhold from any benefits payable
under this agreement all federal, state, city or other taxes as may be required
pursuant to any law or governmental regulation or ruling.

     

    4. No Right to Continued
Employment.  Nothing in this agreement shall give you any
rights to (or impose any obligations for) continued employment by the Company or
any affiliate or subsidiary thereof or successor thereto, nor shall it give such
entities any rights (or impose any obligations) with respect to continued
performance of duties by you.

     

    5. Duty of
Loyalty.  You represent, warrant, confirm and agree that, so
long as you are employed by the Company and in the scope of your employment,
notwithstanding any agreement or understanding with any person or entity, you
shall at all times act, in your good faith judgment, solely in interest of the
Company, SGGP and SGLP (collectively with the Company and SGGP, the “SGLP Group”), and
that you have no duties to SemGroup L.P. or to any entity other than the SGLP
Group, notwithstanding that any such other person or entity may make payment to
you (including for services rendered to the SGLP Group).  The
foregoing notwithstanding, the mere fact that you voluntarily terminate your
employment with the Company and accept employment elsewhere shall not be deemed
a violation of this duty of loyalty so long as you do not breach the
confidentiality provisions of this Agreement.

     

    6. Offset of Retention
Payments.  If, after the First Retention Date or the Final
Retention Date, the Company determines in good faith that (i) you owe any
undisputed amounts to the Company or any affiliate, (ii) the Company or any
affiliate has a colorable legal claim or cause of action against you or (iii) a
third party has a colorable legal claim or cause of action against the Company
or any affiliate relating to actions you have taken, the Company, in its sole
discretion, may offset any retention payments due to you under Section 1 against
the amount of any obligation or liability (i) you may have to the Company or any
affiliate or (ii) that your actions may have caused the Company or any affiliate
to incur.

     

    7. No Assignment;
Successors.  Your right to receive payments or benefits
hereunder shall not be assignable or transferable, whether by pledge, creation
of a security interest or otherwise, whether voluntary, involuntary, by
operation of law or otherwise, other than a transfer by will or by the laws of
descent or distribution, and in the event of any attempted assignment or
transfer contrary to this Section 7 the Company shall have no liability to
pay any amount so attempted to be assigned or transferred.  This
agreement shall inure to the benefit of and be enforceable by your personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees.

     

    This
agreement shall be binding upon and inure to the benefit of the Company and SGGP
and their respective successors and assigns, including, without limitation, any
company into or with which the Company or SGGP may merge or consolidate by
operation of law or otherwise.

     

    8. Entire
Agreement.  This agreement represents the entire agreement
between you and the Company with respect to the subject matter hereof, and
supersedes and is in full substitution for any and all prior agreements or
understandings, whether oral or written, relating to the subject matter
hereof.

     

    9. Modification of
Agreement.  Any modification of this agreement shall be binding
only if evidenced in writing and signed by you and an authorized representative
of the Company.

     

    10. Applicable
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of Oklahoma, (except that no effect shall
be given to any conflicts of law principles thereof that would require the
application of the laws of another jurisdiction).  The captions of
this Agreement are not part of the provisions hereof and shall have no force or
effect.

     

    11. Severability.  If a
court of competent jurisdiction determines that any provision of this agreement
is invalid or unenforceable, then the invalidity or unenforceability of that
provision shall not affect the validity or enforceability of any other provision
of this agreement and all other provisions shall remain in full force and
effect.

     

    
      	
               
      

            	
              If
      you agree to the terms of this letter agreement, please sign and date
      below.

            

    

     

    
      	
               
      

            	
              Yours
      very truly,

            

    

     

    

     

    SEMGROUP
ENERGY PARTNERS MANAGEMENT, INC.

     

    

    

    By: /s/ Kevin L.
Foxx_____________________

    President

    

     

    SEMGROUP
ENERGY PARTNERS G.P., L.L.C.

    

    

    

    By: /s/ Alex G.
Stallings____________, Manager

     

    

     

    SEMGROUP
ENERGY PARTNERS, L.P.

     

    By
SEMGROUP ENERGY PARTNERS G.P., L.L.C., its General Partner

     

    By: /s/ Alex G.
Stallings____________, Manager

     

    

     

    

     

    

    

     

    Accepted
and Agreed to By:

     

    /s/ James R. Griffin
________________

    James R.
Griffin

     

    8/20/08_________________________

    Execution
Date

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