Document:

ex10_3.htm

    
      

    

    Exhibit 10.3
   

    EXECUTIVE
EMPLOYMENT AGREEMENT

    

    THIS EXECUTIVE EMPLOYMENT
AGREEMENT (this “Agreement”) is made effective as of December 31, 2008
(the “Effective Date”) by and between Genesis Energy, LLC (the “Company”), or
any successor entity to the Company, and Robert V. Deere
(“Executive”).

    

    PRELIMINARY
STATEMENTS

    

    A.           The
Company, which is the general partner of Genesis Energy, L.P., a Delaware
limited partnership (the “Partnership”), desires to employ Executive as its
Chief Financial Officer, and Executive desires to be employed by the Company in
said capacity;

    

    B.           
Each party desires to set forth in writing the terms and conditions of their
understandings and agreements; and

    

    C.           
Unless otherwise defined, capitalized terms used in this Agreement have the
meanings specified in Section 22 below.

    

    NOW, THEREFORE, in
consideration of the mutual covenants and obligations contained herein, the
sufficiency of which is hereby acknowledged by the parties, the Company hereby
agrees to employ Executive and Executive hereby accepts such employment upon the
terms and conditions set forth in this Agreement:

    

    STATEMENT
OF AGREEMENT

    

    1.            
Position.

    

    (a)           The
Company agrees to employ Executive in the position of its Chief Financial
Officer (“CFO”).  Executive shall serve as, and perform the duties of,
CFO.

    

    (b)           Executive
agrees to serve as CFO and agrees that he will devote his best efforts and full
time and attention to all facets of the business of the Company and will
diligently carry out the duties of CFO.  Nothing in this Section 1(b)
or this Agreement, however, will prevent Executive from engaging in additional
activities in connection with personal investments, civic or community affairs,
or other activities that do not interfere with the performance of Executive’s
duties under this Agreement.

    

    (c)           Executive
shall be vested with all authority specifically granted by the Board of
Directors of the Company (“Board”).

    

    (d)           Executive
agrees to reasonable travel as necessary to perform his duties under this
Agreement.

    

    2.            
Term.  The
Term (herein so called) of this Agreement shall be four (4) years from the
Effective Date, unless sooner terminated pursuant to Section 4
below.  If not sooner terminated, this Agreement shall automatically
terminate upon the expiration the Term.  Executive’s employment shall
be in accordance with and governed by this Agreement, unless modified by the
parties to this Agreement in writing.

    

    
      
        
           

        

        
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    3.            
Compensation and
Benefits.

    

    (a)           Base
Salary.  The Company shall pay Executive a base salary at the
rate of $369,600 per year, subject to adjustment as provided below, which shall
be pro rated and payable as provided herein (“Base Salary”).  The per
annum rate of Executive’s Base Salary shall be increased by the amounts set
forth below as of the first day of the next full month occurring after
achievement, if any, of the specified levels of Average Market
Capitalization:

    

    (i)            
$30,000 if Average Market Capitalization of
$1.0 billion is achieved for any 90-consecutive
calendar day period; and

    

    (ii)           
an additional amount equal to 10% of the then-effective Base Salary
each time an additional $300 million of Average Market Capitalization above $1.0
billion is achieved (for example, $1.3 billion, $1.6 billion, etc.) for any
90-consecutive calendar day period, provided that the maximum per
annum rate of Executive’s Base Salary will be $500,000 and there will be no
further increases if and after such maximum rate is achieved.

    

    (b)           Bonus
Opportunities.  In addition to the Base Salary, Executive shall
also be eligible to receive bonuses from time to time based on exceptional
service and/or the performance of the Company, if awarded by the Board in its
sole discretion (“Discretionary Bonus”).  Any such Discretionary Bonus
will be paid in accordance with the terms of such award.

    

    (c)           Payment.  Payment
of all compensation to Executive hereunder shall be made in accordance with the
terms of this Agreement and applicable Company policies in effect from time to
time, including normal payroll practices, and shall be subject to all applicable
withholdings and taxes.

    

    (d)           Benefits
Generally.  The Company shall make available to Executive,
throughout the Term of this Agreement, benefits as are generally provided by the
Company to its executive officers, including but not limited to any group life,
health, dental, vision, disability or accident insurance, pension plan, profit
sharing plan, retirement savings plan, 401(k) plan, or other such benefit plan
or policy which may presently be in effect or which may hereafter be adopted by
the Company for its executive officers and key management personnel, and also
including any rights and benefits under the directors’ and officers’ liability
insurance then in place under the Company insurance program for the directors
and officers of the Company; provided, however, that Executive is not eligible
to participate in any of the “Genesis Energy, Inc. Bonus Plan” or the “Genesis
Energy Inc. Stock Appreciation Rights Plan” (both effective December 31, 2003),
or any successor equity plan or plans of the Company, or the “Genesis Energy
Amended and Restated Severance and Protection Plan.”

    

    (e)           Vacation.  Executive
shall be entitled to paid vacation during each calendar year, consistent with
any written policies of the Company then applicable to executive officers
generally, but in no event fewer than four (4) weeks.  Unused vacation
days and holidays shall be carried over from year to year, if at all, in
accordance with the written policies then in effect for executive officers of
the Company generally.

    

    
      
        
           

        

        
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    (f)           
Holidays.  Executive
shall further be entitled to paid holidays, personal days, and sick days
consistent with the written policies then applicable to executive
officers.

    

    (g)           Reimbursement of
Expenses.  The Company shall reimburse Executive for all
business expenses incurred by Executive while performing his duties under this
Agreement, which shall include dues in professional societies and
organizations.  The amount of any expense reimbursement provided
during one taxable year of the Executive shall not affect the amount of the
reimbursement provided in any other taxable year.

    

    (h)           Employment Taxes and
Withholding.  The Company acknowledges that, upon Executive’s
acquisition of an Individual Class B Interest (as that term is defined in the
LLC Agreement) in the Company, for income and employment tax purposes, insofar
as Executive receives Base Salary, Discretionary Bonus and benefits pursuant to
this Article 3, he will be treated as a self-employed partner receiving
guaranteed payments.  The
Company shall make a quarterly tax equalization payments to reimburse Executive
for any federal, state and local income, self employment or other taxes incurred
by Executive on Base Salary, Discretionary Bonus and benefits paid or provided
to Executive by Company pursuant to this Article 3 (but not amounts which
Executive receives pursuant to the LLC Agreement by virtue of owning an
Individual Class B Interest), to the extent of the difference in the tax burden
imposed on Executive as a result of his status as a member of the Company in
comparison to the tax treatment that would be available to Executive if he was
characterized as a common law employee for tax purposes.  If the
Company adopts any additional policies intended to address tax treatment
associated with the self-employment status of members of the Company, Executive
shall be eligible for any such benefits on the same basis as all other similarly
situated executives of the Company.  To the extent Executive is not
required to be treated as a self-employed partner, any amounts payable pursuant
to this Agreement shall be subject to applicable tax withholding
requirements.

    

    4.           Termination.  This
Agreement may be terminated by the Company or Executive, or may automatically
terminate, as provided in this Article 4.

    

    (a)           Termination by the Company
without Cause or for Cause.  The Company may terminate this
Agreement at any time either without Cause or for Cause.  “Cause”
means any of the following:

    

    (i)           
 Executive’s commission of willful fraud against, or willful theft of any
assets or property of, the Company, the Partnership or their respective
Affiliates, suppliers or customers;

    

    (ii)           
Executive’s conviction (or plea of nolo contendere) for any felony or any crime
which involves moral turpitude;

    

    (iii)           Executive’s
material violation of the non-disclosure or confidentiality provisions of this
Agreement; Executive’s substantial non-performance of his duties and
obligations, whether pursuant to this Agreement or otherwise (other than due to
death or disability); Executive’s gross negligence; or Executive’s willful
misconduct in performing his duties;

    

    
      
        
           

        

        
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    (iv)           Executive
willfully engaging in conduct that is demonstrably and materially injurious,
monetarily or otherwise, to the Company, the Partnership, or their respective
Affiliates; or

    

    (v)           Executive’s
willful violation of material written rules, regulations or policies of the
Company or the Partnership, or failure to follow reasonable written instructions
or directions both from a majority of the Company’s Audit Committee (the “Audit
Committee”) and from the Company’s Class A Member (the “Class A Member”) to
Executive that Executive’s failure to follow such instructions or directions
could reasonably be expected to be materially injurious, monetarily or
otherwise, to the Company or the Partnership, or their respective
Affiliates.

    

    Termination
of this Agreement by the Company without Cause or for Cause may be effected only
by written notice thereof from the Company to Executive (“Termination Notice”),
which in the case of termination for Cause both identifies in sufficient detail
the reasons therefor and is recommended both by a majority of the Audit
Committee and by the Class A Member.  Termination without Cause and
termination pursuant to clauses (i) or (ii) above will be effective on the date
that the Termination Notice is deemed given and received.  Termination
pursuant to clauses (iii), (iv) and (v) above shall only become effective thirty
(30) days after Termination Notice is deemed given and received and Executive’s
failure (within thirty (30) days of the date that Termination Notice is deemed
given and received) to cure the reasons for such termination for Cause or to
cease the conduct constituting the basis of such termination for Cause; provided
further, that prior to such termination for Cause under clauses (iii), (iv) and
(v) above becoming effective, the Company shall provide an opportunity for
Executive to be heard by the Audit Committee.  No act, nor failure to
act, on Executive’s part, shall be considered “willful” unless he has acted or
failed to act with an absence of good faith and without a reasonable belief that
his action or failure to act was in the best interest of the Company and/or the
Partnership.

    

    (b)           Termination by Executive
without Good Reason or for Good Reason.  Executive may
terminate this Agreement at any time either without Good Reason or for Good
Reason.  “Good Reason” means any of the following:

    

    (i)           
 The material diminution of Executive’s duties and responsibilities, a
material reduction of his base salary, or a material reduction of his benefits,
other than as a result of termination for Cause, without Good Reason or by
virtue of his death or disability;

    

    (ii)           
The relocation of the Company’s principal executive offices outside the
metropolitan Houston, Texas area without Executive’s consent;

    

    (iii)           The
Company requiring that Executive be based anywhere other than the Company’s
principal executive offices without Executive’s consent;

    

    (iv)           The
Company’s failure to make any material payment to Executive required to be made
under the terms of this Agreement;

    

    
      
        
           

        

        
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    (v)           The
Company’s non-performance of any material provision (other than those described
in (iv) above) of this Agreement, or non-performance of Denbury (or its
Affiliates or any of their successors or assigns) of any material provision of
any Transaction
Document (italicized terms in this subsection 4(b) and its subsections
are defined as provided in the LLC Agreement), in each such case;
or

    

    (vi)           Any
action by the Company, Denbury or its Affiliates or any of their successors or
assigns, the Class A Member or its Affiliates or any of their successors or
assigns, the Board, the general partner of the Partnership (if it is not the
Company), or the Partnership or any of its successors or assigns that either (i)
amends, alters, changes, repeals or replaces the IDRs or the Class B Ownership Interests
in a manner that in any material way adversely affects the Distributions or Redemption Amount payable to
Executive, or (ii) except as required by a change in the law or a final, binding
and non-appealable judgment, or except to the extent the IRS or any other federal tax
authority has asserted a claim to the contrary and the Person taking a tax
reporting position reasonably and in good faith believes that such authority is
more likely than not to be successful in adjudicating such claim, takes a
federal tax reporting position inconsistent with that specified in Section
7.10(b) of the LLC Agreement that materially and adversely affects the
Executive, provided that the following actions shall not constitute Good
Reason:

    

    (a)           any
action that will result in Executive receiving his Redemption Amount (or having
an election to receive his Redemption Amount under the
provisions of Section 5.05(c) of the LLC Agreement);

    

    (b)           a
waiver by the Company of receipt from the Partnership of an Incentive Distribution for
any period(s) as contemplated by Section 3.02(c)(5) of the LLC
Agreement;

    

    (c)           any
Conversion Event;
or

    

    (d)           any
amendment to the LLC Agreement permitted by Section 5.05(b) of the LLC
Agreement.

    

    Termination
of this Agreement by Executive without Good Reason or for Good Reason may be
effected by Executive only by his providing written notice thereof, which in the
case of termination for Good Reason is given within 90 days of the initial
existence of and identifies in sufficient detail the reasons therefor, to both
the Audit Committee and the Class A Member.  Termination without Good
Reason will be effective thirty (30) days after such notice is deemed given and
received.  Termination for Good Reason shall only become effective
thirty (30) days after such notice is deemed given and received and the failure
by the Company or Denbury (or its Affiliates) to cure the reasons
therefor.

    

    (c)           Disability.  If
the Board determines that the Company should do so, the Company may terminate
this Agreement at any time that Executive has sustained a
“disability.”  Such termination will be effective on the date that
written notice thereof is deemed given and received.  For purposes of
this Agreement, Executive will have sustained a “disability” if (i) Executive
has been absent from his duties with the Company on a full-time basis for 180
out of any 220 consecutive calendar days as a result of incapacity due to mental
or physical illness or injury which is determined to be total and permanent by a
physician selected by the Company or its insurers and reasonably acceptable to
the Executive or his legal representatives, or (ii) Executive is determined to
be totally disabled by the Social Security Administration.  Executive
must submit to a reasonable number of examinations, to be paid for by the
Company, by the physician making the determination regarding disability under
this Section 4(c), and Executive hereby authorizes the disclosure and release to
the Company of such determination and all supporting medical
records.  If Executive is not legally competent, Executive’s legal
guardian or duly authorized attorney-in-fact will act in Executive’s stead under
this Section 4(c), for the purposes of submitting Executive to the examinations,
and for the purpose of providing the authorization of disclosure, required under
this Section 4(c).

    

    
      
        
           

        

        
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    (d)           Death.  This
Agreement will terminate automatically effective upon Executive’s
death.

    

    (e)           Benefits
Continuation.  The Company will continue to pay for the
continued coverage of the Executive and any of his family members covered on the
date that termination of this Agreement is effective (“Covered Dependents”)
under the health and medical benefit plans of the Company, including, among
others, prescription drug, dental and vision coverage, as applicable (the
“Medical Plan”), for the period commencing on the date of Executive’s
“separation from service” as defined in Code Section 409A and Treasury
Regulations Section 1.409A-1(h) (the “Service Separation Date”) and ending on
the earlier of the date Executive becomes eligible for substantially similar
coverage under the health and medical benefit plans of another employer, or
eighteen (18) months after the Service Separation Date (the “Continuation
Period”), at the same level of Company contribution applicable to similarly
situated active employees of the Company during such period.  In
addition, it is agreed that this continued health and medical coverage is
provided in conjunction with and not in addition to, and will be, the continued
coverage in accordance with Code Section 4980B, commonly referred to as “COBRA
coverage.”

    

    Notwithstanding
anything in this Agreement to the contrary, at such time (if ever) during the
Continuation Period as it becomes administratively impracticable for the Company
to provide Executive and/or his Covered Dependents with full coverage under the
Medical Plan, during the remainder of the Continuation Period the Company shall
pay on Executive’s behalf the costs of any similar individual health and medical
coverage providing comparable benefits for Executive and/or such Covered
Dependents, up to a maximum of the applicable premiums which would have been
paid by the Company during the remainder of the Continuation Period with respect
to the lost coverage portion of the Medical Plan, such payment to be made upon
Executive’s submission of proof of his prior payment of the premiums for such
coverage.

    

    (f)          
 Life Insurance.  Upon termination of this Agreement for any reason
other than death, Company shall immediately, and without imposition of any
charge, fee or cost of any sort other than proper reporting of any income tax
consequence, transfer ownership of all policies of insurance on the life of
Executive owned by the Company, if any, to Executive free and clear of all
claims, liens and encumbrances whatsoever.

    

    
      
        
           

        

        
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    (g)           Employment.  Upon
termination of this Agreement for any reason, including expiration of the Term
or a termination for a reason specified in this Section 4, Executive’s
employment shall also terminate and cease, and if he is a member thereof
Executive shall be deemed to have voluntarily resigned from the
Board.

    

    (h)           Severance Payment Amount and
Severance Payment Date.  For purposes of this Agreement,
Executive’s “Severance Payment Date” shall mean a date not later than the fifth
business day following the Service Separation Date; provided, however, that
Executive’s “Severance Payment Date” with respect to a particular Severance
Payment (as defined below) provided for under this Agreement shall, to the
extent such Severance Payment is (1) not treated as a short-term deferral under
Treasury Regulations Section 1.409A-1(b)(4) and (2) exceeds the separation pay
limits of Treasury Regulations Section 1.409A-1(b)(9)(iii)(A) (two times the
lesser of (x) the sum of Executive’s annualized compensation based on
Executive’s annual Base Salary for the calendar year preceding the calendar year
in which the Service Separation Date (defined in Section 4(e) above) occurs
(adjusted for any increase during that year that was expected to continue
indefinitely if Executive had not separated from service), or (y) the maximum
amount that may be taken into account under a qualified plan pursuant to Code
Section 401(a)(17) for the year in which such Service Separation Date occurs) or
-1(b)(9)(iii)(B) (amounts must be paid no later than the last day of the second
calendar year following the calendar year in which the Service Separation Date
occurs), be delayed to the first business day of the seventh month after the
Executive’s Service Separation Date (or, if earlier, not later than the 30th day
following Executive’s death) if the Executive is a “specified employee” under
Section 409A of the Code and Section 1.409A-1(i) of the Treasury Regulations on
the Service Separation Date.  In the event of such delay, any portion
of the Severance Payment which would have been paid to Executive during the
first six months following the Service Separation Date but for such delay, will
be accumulated and paid on the delayed Severance Payment Date, and the balance
will be paid as if there were no delay.  For purposes of Section 409A
of the Code, the right to a series of installment payments under this Agreement
will be treated as a right to a series of separate payments.  For
purposes of this Section 4(h), any amount that is treated as a short-term
deferral within the meaning of Treasury Regulations Section 1.409A-1(b)(4) or
that meets the separation pay limits under Treasury Regulations Section
1.409A-1(b)(9)(iii) will be treated as a separate payment.  On the
Severance Payment Date, or thereafter as provided in this Section 4(h), the
Company will make a payment to Executive or as otherwise provided below,
determined as follows:

    

    (i)           
 Without Cause or
Disability or for Good Reason.  If the Company terminates this
Agreement without Cause, or as a result of the Board’s determination that
Executive has sustained a “disability” pursuant to Section 4(c) hereof, or
if Executive terminates this Agreement for Good Reason, the Company shall pay to
Executive (x) all accrued but unpaid Base Salary, all accrued but unused
vacation (based on Executive’s then effective Base Salary less applicable
deductions), and all accrued but unpaid Discretionary Bonus if any Discretionary
Bonus is then due, as of the date that termination of this Agreement is
effective (“Accrued Compensation”), which amount will be paid not later than the
fifth business day following the Service Separation Date, and (y) after the
Severance Payment Date the Company shall continue to pay Executive his
“Non-Change-of-Control” Severance Payment, which will be his Base Salary,
pursuant to the Company’s payroll schedule then in effect for Executive, at the
monthly rate being paid immediately prior to termination of this Agreement, for
what would have been the remainder of the Term but for such
termination.

    

    
      
        
           

        

        
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    (ii)           For
Cause.  If the Company terminates this Agreement for Cause, the
Company shall pay to Executive only Executive’s Accrued Compensation (but not
including any accrued but unpaid Discretionary Bonus), which amount will be paid
not later than the fifth business day following the Service Separation
Date.

    

    (iii)           Without Good
Reason.  If Executive terminates this Agreement without Good
Reason, the Company shall pay to Executive only Executive’s Accrued Compensation
(but not including any accrued but unpaid Discretionary Bonus), which amount
will be paid not later than the fifth business day following the Service
Separation Date.

    

    (iv)           Death.  If
this Agreement terminates because Executive dies, the Company shall pay (x)
Accrued Compensation, plus (y) a lump sum amount equal to the product of
Executive’s monthly Base Salary (determined at the same monthly rate being paid
to Executive immediately prior to termination of this Agreement) multiplied by
the number of months (and any portion of a month for which Executive had not
already been paid Base Salary on the date of termination) included in the period
beginning on the date of termination and ending on what would have been the last
day of the Term but for such termination, which payment will be made to
Executive’s designated beneficiary (or to his estate, if Executive has not
designated in writing a beneficiary by the time of his death), within 90 days of
the date of the Executive’s death.

    

    (v)           Change of
Control.  If the Company terminates this Agreement without
Cause during the period beginning on the date of a “Change of Control” (as that
term is defined in the LLC Agreement) that also meets the definition of a
“change in control event” provided in Section 1.409A-3(i)(5) of the Treasury
Regulations and ending on the second anniversary of such Change of Control, the
Company shall pay to Executive (x) Accrued Compensation, which amount will be
paid not later than the fifth business day following the Service Separation
Date, and (y) following the Severance Payment Date the Company shall continue to
pay Executive his “Change-of-Control” Severance Payment, which will be his Base
Salary, pursuant to the Company’s payroll schedule then in effect for Executive,
at the monthly rate being paid immediately prior to termination of this
Agreement, for the period from the Service Separation Date until the later of
(A) what would have been the last day of the Term but for such termination, or
(B) the third anniversary of the Service Separation Date.

    

    (vi)         
 Expiration of
Term. If this Agreement terminates upon expiration of the Term, there
will be no Severance Payment.

    

    5.             
Nondisclosure.

    

    (a)           The
Company’s and the Partnership’s confidential information (“Confidential
Information”) shall include but not be limited to the Company’s and the
Partnership’s various trade secrets and confidential or proprietary information,
including information Executive has not received before first being employed by
the Company, consisting of, but not limited to, information relating to: (a)
business operations and methods; (b) existing and proposed acquisitions,
acquisition strategies, investments, investment strategies and business plans;
(c) financial performance; (d) compensation arrangements and amounts (whether
relating to the Company, the Partnership, or to any of their respective
employees, including the CFO); (e) contractual relationships (including the
terms of this Agreement); (f) business partners and relationships; (g) limited
partners and prospective limited partners of the Partnership; (h) marketing
strategies; (i) lists with information related to existing or prospective
customers, partners or investors, including, but not limited to particular
investments, investment strategies, investment patterns and amounts; and (j)
computerized investment approaches, methodologies, trading systems or programs,
mathematical models, simulated results, simulation software, price or research
databases, other research, algorithms, numerical techniques, analytical results,
or technical data, regardless of the medium in which any such information is
contained.  Confidential Information shall not include information:
(A) that becomes generally available to the public by means other than
Executive’s breach of this Section 5 (for example, not as a result of
Executive’s unauthorized release of marketing materials); (B) that is in
Executive’s possession, or becomes available to Executive, on a nonconfidential
basis, from a source other than the Company or the Partnership; or (C) that
Executive is required by law, regulation, court order or discovery demand to
disclose; provided, however, that in the case of clause (C), Executive gives the
Company reasonable notice prior to the disclosure of the Confidential
Information and the reasons and circumstances surrounding such disclosure in
order to provide the Company an opportunity to seek a protective order or other
appropriate request for confidential treatment of the applicable Confidential
Information.

    

    
      
        
           

        

        
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    (b)           Executive
agrees that all Confidential Information, whether prepared by Executive or
otherwise coming into his possession, shall remain the exclusive property of the
Company and/or the Partnership during Executive’s employment with the Company
and thereafter, and that Executive will return to the Company all Confidential
Information in his possession, in whatever format or form maintained, upon
request of the Company and/or upon termination of this
Agreement.  Executive further agrees that Executive shall not, without
the prior written consent of the Company, (i) disclose to any third party (or
use in any manner that will materially and adversely effect the Company) any of
the Confidential Information described herein, (ii) use for the Executive’s
personal benefit any of the Confidential Information, or (iii) aid others in the
use of such Confidential Information in competition with the Company or the
Partnership, whether directly or indirectly, either during Executive’s
employment with the Company or at any time following the termination of
Executive’s employment with the Company.  Executive agrees that the
provisions of this Section 5(b), and of Section 6(b) below, will be rules,
regulations and policies of the Company for purposes of Section 4(a)(v)
above.

    

    6.             
Noncompete and
Nonsolicitation.

    

    (a)           
Business Relationships
and Goodwill.  Executive acknowledges and agrees that, as an
employee and representative of the Company, Executive has been and will be given
responsibility, specialized training and Confidential
Information.  Executive acknowledges and agrees that this creates a
special relationship of trust and confidence between Executive and the Company,
the Partnership and the Company’s and the Partnership’s current and prospective
customers, shareholders or members, limited partners, and
investors.  Executive further acknowledges and agrees that there is a
high risk and opportunity for any individual given such responsibility,
specialized training, and Confidential Information to misappropriate the
relationship and goodwill existing between the Company and the Partnership and
the Company’s and Partnership’s current and prospective customers, shareholders
or members, limited partners, and investors.  Executive therefore
acknowledges and agrees that it is fair and reasonable for the Company to take
steps to protect itself from the risk of such
misappropriation.  Consequently, Executive agrees to the following
noncompetition and nonsolicitation covenants.

    

    
      
        
           

        

        
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    (b)           Scope of Noncompetition
Obligation.

    

    (i)           
Executive acknowledges and agrees that (x) the Term of this Agreement, (y) a
period of two years after termination of this Agreement if this Agreement is
terminated by the Company for Cause or by Executive without Good Reason, and (z)
a period of one year after termination of this Agreement if this Agreement is
terminated other than by the Company for Cause or by Executive without Good
Reason, will constitute non-compete, non-solicit and non-divert periods (the
“Non-Interference Period”).  During his employment and during the
Non-Interference Period, Executive will not work for, supervise, assist or
participate in, a Competing Business in any capacity (as owner, employee,
consultant, advisor, contractor, officer, director, lender, investor, agent, or
otherwise) or otherwise engage in any Competing Business, within the States of
Louisiana, Mississippi and Texas.  This Paragraph creates a narrowly
tailored restraint in order to avoid unfair competition and irreparable harm to
the Company and the Partnership and is not intended or to be construed as a
general covenant against competition in the oil and gas
industry.  “Competing Business” means any Person that
directly competes with or would directly compete with, or displaces or would
displace, any of the activities of the Partnership in those geographical areas
of the states of Louisiana, Mississippi or Texas in which the Partnership has
significant operations, or in which the Company or the Partnership prior to the
termination of this Agreement has anticipated doing future business as part of
the Partnership’s business plan disclosed to or developed by Executive prior to
such date.  Notwithstanding the above, the foregoing covenant shall
not be deemed to prohibit Executive from making an investment of not more than
five percent (5%) of the equity interests of a publicly traded Competing
Business.

    

    (ii)           Executive
further agrees that during the Non-Interference Period, he will not directly or
indirectly:  (a) solicit, entice, persuade or induce any employee,
agent or representative of the Company, or anyone who was an employee, agent or
representative of the Company upon the termination or expiration of this
Agreement, to terminate such individual’s relationship with the Company or to
become employed by any business or individual other than the Company; (b)
approach any such individual for any of the foregoing purposes; (c) authorize,
solicit or assist in the taking of such actions by any third party; or (d) hire
or retain any such individual.

    

    (c)           Executive
Breach.  In the event that during the periods described in
Sections 6(b)(i)(y) or 6(b)(i)(z) above, if Executive breaches his agreements
under this Section 6 or under Section 5 above, without waiving its rights to
enforce such agreements or to exercise other available remedies, upon such
breach the Company will be released from the obligation to pay any further
Severance Payments to Executive.

    

    7.            
Severability and
Reformation.  If any one or more of the terms, provisions,
covenants or restrictions of this Agreement shall be determined by a court of
competent jurisdiction to be invalid, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions shall remain in full force and
effect, and the invalid, void or unenforceable provisions shall be deemed
severable.  Moreover, if any one or more of the provisions contained
in this Agreement shall for any reason be held to be excessively broad as to
duration, geographical scope, activity or subject, it shall be reformed by
limiting and reducing it to the minimum extent necessary, so as to be
enforceable to the extent compatible with the applicable law as it shall then
appear.

    

    
      
        
           

        

        
          10

          
            

          

        

        
           

        

      

    

     

    8.            
Entire
Agreement.  This Agreement, along with the other documents and
agreements entered into by Executive and the Company and/or its Affiliate on the
Effective Date, sets forth the entire agreement between the parties and
supersedes any and all prior agreements or understandings, written or oral,
between the parties pertaining to the subject matter hereof.  Except
as expressly set forth in this Agreement and the other documents and agreements
entered into by Executive and the Company and/or its Affiliate on the Effective
Date, neither the parties nor their Affiliates, advisors and/or their attorneys
have made any representation or warranty, express or implied, at law or in
equity with respect of the subject matter contained herein.

    

    9.            
Notices.  All
notices and other communications required or permitted to be given hereunder
shall be in writing and shall be deemed to have been duly given if delivered
personally, mailed by certified mail (return receipt requested) or sent by
overnight delivery service, or electronic mail, or facsimile transmission (with
electronic confirmation of successful transmission) to the parties at the
following addresses or at such other addresses as shall be specified by the
parties by like notice, in order of preference of the recipient:

    

    
      	
               
      

            	
               If
      to the Company:

            	
              Genesis Energy,
  LLC

            

    

    919
Milam, Suite 2100

    Houston,
TX 77002

    Attn:  Chief
Legal Officer

    Fax:    
713/860-2640

    Email:  rbenavides@genlp.com

     

    
      	
            	
               with
      copy to Denbury at:

            	
              Denbury
      Resources Inc.

            

    

    5100
Tennyson Parkway, Suite 1200

    Plano,
TX  75024

    Attn:  Mr.
Phil Rykhoek

    Fax:    972/673-2051

    Email: phil.rykhoek@denbury.com

    

    
      	
               
      

            	
               If
      to Executive:

            	
              Robert V.
Deere

            

    

    126
Sugarberry Circle

    Houston,
TX  77024

    Email: bob.deere@genlp.com
and

    BobDeere@aol.com

    

    Notice so
given shall be deemed to be given and received, in the case of mail, on the
fifth calendar day after posting, in the case of overnight delivery service on
the date of actual delivery, in the case of electronic mail or facsimile
transmission on the date of actual transmission and, in the case of personal
delivery on the date of actual delivery.

    

    
      
        
           

        

        
          11

          
            

          

        

        
           

        

      

    

     

    10.           Governing Law and
Venue.  This Agreement will be governed by and construed in
accordance with the laws of the State of Texas, without regard to any conflict
of laws rule or principle which might refer the governance or construction of
this Agreement to the laws of another jurisdiction.  Any dispute in
regard to this Agreement or arising out of its terms and conditions shall be
instituted and litigated only in Houston, Texas.

    

    11.           Executive’s
Successors.  This Agreement and all rights of Executive
hereunder shall inure to the benefit of and be enforceable by Executive’s
personal or legal representative, executors, administrators, successors, heirs,
distributees, devisees and other legatees.

    

    12.           Counterparts.  This
Agreement may be executed in counterparts, each of which will take effect as an
original, and all of which shall evidence one and the same
Agreement.

    

    13.           Amendment.  This
Agreement may be amended only in writing signed by Executive and by a duly
authorized representative of the Company (other than Executive).

    

    14.           Construction.  The
headings and captions of this Agreement are provided for convenience only and
are intended to have no effect in construing or interpreting this
Agreement.  Any reference to any federal, state, local, or foreign
statute or law shall be deemed also to refer to all rules and regulations
promulgated thereunder, unless the context requires otherwise.  The
word “including” shall mean including without limitation.  All
personal pronouns used in this Agreement, whether used in the masculine,
feminine or neuter gender, shall include all other genders; the singular shall
include the plural, and vice versa.  All references herein to
Exhibits, Schedules, Articles, Sections or subdivisions thereof shall refer to
the corresponding Exhibits, Schedules, Article, Section or subdivision thereof
of this Agreement unless specific reference is made to such exhibits, articles,
sections or subdivisions of another document or instrument. The terms “herein,”
“hereby,” “hereunder,” “hereof,” “hereinafter,” and other equivalent words refer
to this Agreement in its entirety and not solely to the particular portion of
this Agreement in which such word is used.  The words “shall” and
“will” are used interchangeably throughout this Agreement and shall accordingly
be given the same meaning, regardless of which word is
used.  References to a party hereto include its permitted successors
and assigns.

    

    15.           Non-Waiver.  The
failure by either party to insist upon the performance of any one or more terms,
covenants or conditions of this Agreement shall not be construed as a waiver or
relinquishment of any right granted hereunder or of any future performance of
any such term, covenant or condition, and the obligation of either party with
respect hereto shall continue in full force and effect, unless such waiver shall
be in writing signed by the Company (other than by Executive) and
Executive.

    

    16.           Binding
Agreement.  This Agreement shall inure to the benefit of and be
binding upon Executive, his heirs and personal representatives, and the Company,
its successors and assigns.

    

    17.           Settlement of
Claims.  The Company’s obligation to make the payments provided
for in this Agreement and otherwise to perform its obligations hereunder shall
not be affected by any circumstances, including, without limitation, any
set-off, counterclaim, defense, recoupment, or other right which the Company may
have against Executive or others.

    

    
      
        
           

        

        
          12

          
            

          

        

        
           

        

      

    

     

    18.           Indemnification.  During
the Term of this Agreement, the Company will indemnify, and advance expenses to
Executive to the same extent and subject to the same conditions under which it
may indemnify and advance expenses to its Members and/or Directors under Article
7 of the LLC Agreement.

    

    IT
IS EXPRESSLY ACKNOWLEDGED THAT THE INDEMNIFICATION PROVIDED IN THIS SECTION 18
COULD INVOLVE INDEMNIFICATION FOR NEGLIGENCE.

    

    19.           Attorneys’
Fees.  Should any litigation be commenced between the parties
hereto concerning any provision of this Agreement or the rights and duties
hereunder, the parties prevailing in such litigation shall be entitled, in
addition to such other relief as may be granted in such proceeding, to a
reasonable sum from the nonprevailing party as and for attorneys’ fees in such
litigation, which sum shall be determined in such litigation or in a separate
action for such purpose.

    

    20.           Voluntary
Agreement.  The parties have participated jointly in the
negotiation and drafting of this Agreement.  Each party to this
Agreement has read and fully understands the terms and provisions hereof, has
had an opportunity to review this Agreement with legal counsel, has executed
this Agreement based upon such party’s own judgment and advice of counsel (if
any), and knowingly, voluntarily, and without duress, agrees to all of the terms
set forth in this Agreement.  The language in all parts of this
Agreement shall be in all cases construed in accordance to its fair meaning and
not strictly for or against the Company or Executive.  If an ambiguity
or question of intent or interpretation arises, this Agreement will be construed
as if drafted jointly by the parties and no presumption or burden of proof will
arise favoring or disfavoring any party because of authorship of any provision
of this Agreement.

    

    21.           Mitigation.  Upon
termination of this Agreement for any reason, Executive shall not be obligated
to seek other employment or take any other action by way of mitigation of
Severance Payment or other payment set forth in this Agreement, and such amounts
shall not be reduced whether or not Executive obtains other
employment.

    

    22.           Definitions.  As
used in this Agreement, the following terms have the meanings specified
below:

    

    (a)           “Accrued
Compensation” has the meaning set forth in Section 4(h)(i).

    

    (b)           “Audit
Committee” has the meaning set forth in Section 4(a)(v).

    

    (c)           “Affiliate”
means, with respect to any relevant Person, any other Person that directly or
indirectly, through one or more intermediaries, controls, is controlled by, or
is under common control with, the relevant Person.  Notwithstanding
the foregoing, Denbury, the Company, the Partnership and their subsidiaries will
be deemed not to be Affiliates of Executive or any of his Affiliates, and vice
versa.

    

    (d)           “Agreement”
has the meaning set forth in the introductory paragraph.

    

    
      
        
           

        

        
          13

          
            

          

        

        
           

        

      

    

     

    (e)           “Average
Market Capitalization” means, for any day on which Common Units are traded on a
National Securities Exchange, the quotient derived by dividing (x) by (y), where
(x) means the product of (i) the per Common Unit Closing Price applicable on
such day, multiplied by (ii) the number of issued and outstanding Common Units
as of the close of business on such day, and (y) means .979902.

    

    (f)           “Base
Salary” has the meaning set forth in Section 3(a).

    

    (g)           “Board”
has the meaning set forth in Section 1(c).

    

    (h)           “Cause”
has the meaning set forth in Section 4(a).

    

    (i)           “CFO”
has the meaning set forth in Section 1(a).

    

    (j)           “Class
A Member” has the meaning set forth in Section 4(a)(v).

    

    (k)           “Closing
Price” means, on any day the closing sales price as reported by a National
Securities Exchange on such day, provided that;

    

    (i)           if
the Common Units are not listed on a National Securities Exchange, the last
quoted price on such day for Common Units in the over-the-counter market, as
reported by the National Association of Securities Dealers, Inc. Automated
Quotation System (“NASDAQ”), or, if such system is no longer in use, a similar
quotation service selected by the Board; or

    

    (ii)           if
Common Units are not so quoted, the average of the last bid and ask prices for
Common Units on such day from a market-maker for Common Units selected by the
Board for this purpose.

    

    (l)           
“Code” means the United States Internal Revenue Code of 1986, as
amended.

    

    (m)           “Common
Unit” means a limited partner Common Unit of the Partnership.

    

    (n)           “Company”
has the meaning set forth in the introductory paragraph.

    

    (o)           “Competing
Business” has the meaning set forth in Section 6(b)(i).

    

    (p)           “Confidential
Information” has the meaning set forth in Section 5(a).

    

    (q)           “Continuation
Period” has the meaning set forth in Section 4(e).

    

    (r)           
“Covered Dependents” has the meaning set forth in Section 4(e).

    

    (s)           “Denbury”
means Denbury Resources Inc., a Delaware corporation.

    

    (t)           
“Disability” has the meaning set forth in Section 4(c).

    

    (u)           “Discretionary
Bonus” has the meaning set forth in Section 3(b).

    

    
      
        
           

        

        
          14

          
            

          

        

        
           

        

      

    

     

    (v)           “Effective
Date” has the meaning set forth in the introductory paragraph.

    

    (w)           “Executive”
has the meaning set forth in the introductory paragraph.

    

    (x)           
“Good Reason” has the meaning set forth in Section 4(b).

    

    (y)           “LLC
Agreement” means the Limited Liability Company Agreement of the Company dated as
of December 29, 2008 between the Company and Denbury Gathering and Marketing,
Inc., as amended by the First Amendment dated as of the date hereof and as
further amended, supplemented, restated, replaced or otherwise modified from
time to time.

    

    (z)           
“Medical Plan” has the meaning set forth in Section 4(e).

    

    (aa)          “National
Securities Exchange” means an exchange registered with the Securities and
Exchange Commission under Section 6(a) of the Securities Exchange Act of 1934,
as amended, and any successor to such statute.

    

    (bb)          “Non-Interference
Period” has the meaning set forth in Section 6(b)(i).

    

    (cc)           “Partnership”
has the meaning set forth in Recital A.

    

    (dd)         “Person”
means any individual or entity, including any corporation, partnership, limited
liability company, trust, government (or agency or other subdivision thereof) or
other association.

    

    (ee)          “Service
Separation Date” has the meaning set forth in Section 4(e).

    

    (ff)           “Severance
Payment” has the meaning set forth in Section 4(h).

    

    (gg)         “Severance
Payment Date” has the meaning set forth in Section 4(h).

    

    (hh)         “Termination
Notice” has the meaning set forth in Section 4(a).

    

    (ii)           “Trading Day” means a day on which the
principal National Securities Exchange on which the relevant Listed Units of any
class are listed or admitted to trading is open for the transaction of
business.

    

    (jj)           
“Treasury Regulation” means the regulations issued under the Code

    

    (kk)          “Unit”
means, with respect to any relevant class of equity interest, the unit of
measuring the number of such relevant securities that are outstanding, whether
designated as units, shares or otherwise.

    

     

    [signature
page follows]

     

    
      
        
           

        

        
          15

          
            

          

        

        
           

        

      

    

    

    IN
WITNESS WHEREOF, the Company and Executive have executed this Agreement,
effective as of the day and year first above written.

    

    
      
        
          	 
      	
                  “COMPANY”

                
	 
      	
                  GENESIS
      ENERGY, LLC

                
	 
      	 
      
	 
      	
                  By:
      /s/  Ross A.
      Benavides

                
	 
      	
                  Printed
      Name: Ross A.
      Benavides

                
	 
      	
                  Title:
      General
      Counsel

                
	 
      	 
      
	 
      	
                  “EXECUTIVE”

                
	 
      	
                  ROBERT
      V. DEERE

                
	 
      	 
      
	 
      	
                  /s/ Robert V. Deere

                
	 
      	
                  126
      Sugarberry Circle

                
	 
      	
                  Houston,
      TX  77024

                

        

      

    

    

    

    Signature
Page

    Executive
Employment Agreementex10_4.htm

    
      
        
          

        

      

    

    Exhibit
10.4

     

    
      GENESIS
ENERGY, LLC

      

      DEFERRED
COMPENSATION PLAN

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      TABLE
OF CONTENTS

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	 
      	 
      	 
      	
                                                    Page

                                                  
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                                                    ARTICLE
      I DEFINITIONS AND GENERAL PROVISIONS

                                                  	
                                                    1

                                                  
	 
      	
                                                    1.1

                                                  	
                                                    Definitions

                                                  	
                                                    1

                                                  
	 
      	
                                                    1.2

                                                  	
                                                    General
      Provisions

                                                  	
                                                    3

                                                  
	 
      	 
      	 
      	 
      
	
                                                    ARTICLE
      II PARTICIPATION

                                                  	
                                                    3

                                                  
	 
      	
                                                    2.1

                                                  	
                                                    General
      Eligibility Conditions

                                                  	
                                                    3

                                                  
	 
      	
                                                    2.2

                                                  	
                                                    Specific
      Conditions for Active Participation

                                                  	
                                                    4

                                                  
	 
      	
                                                    2.3

                                                  	
                                                    Termination
      of Participation

                                                  	
                                                    4

                                                  
	 
      	
                                                    2.4

                                                  	
                                                    Participation
      by Other Employers

                                                  	
                                                    4

                                                  
	 
      	 
      	 
      	 
      
	
                                                    ARTICLE
      III DEFERRED COMPENSATION

                                                  	
                                                    4

                                                  
	 
      	
                                                    3.1

                                                  	
                                                    Record
      of Account

                                                  	
                                                    4

                                                  
	 
      	
                                                    3.2

                                                  	
                                                    Confidentiality
      and Non-Competition Agreement

                                                  	
                                                    4

                                                  
	 
      	 
      	 
      	 
      
	
                                                    ARTICLE
      IV DISTRIBUTION OF BENEFITS

                                                  	
                                                    4

                                                  
	 
      	
                                                    4.1

                                                  	
                                                    Distribution
      Timing

                                                  	
                                                    4

                                                  
	 
      	
                                                    4.2

                                                  	
                                                    Distribution
      upon Death

                                                  	
                                                    5

                                                  
	 
      	
                                                    4.3

                                                  	
                                                    Withdrawals
      for Unforeseeable Emergency

                                                  	
                                                    5

                                                  
	 
      	
                                                    4.4

                                                  	
                                                    Acceleration
      of Payment

                                                  	
                                                    5

                                                  
	 
      	
                                                    4.5

                                                  	
                                                    Delay
      of Payment

                                                  	
                                                    6

                                                  
	 
      	
                                                    4.6

                                                  	
                                                    Assignment
      and Assumption of Liabilities

                                                  	
                                                    7

                                                  
	 
      	 
      	 
      	 
      
	
                                                    ARTICLE
      V PLAN ADMINISTRATION

                                                  	
                                                    7

                                                  
	 
      	
                                                    5.1

                                                  	
                                                    Administration

                                                  	
                                                    7

                                                  
	 
      	
                                                    5.2

                                                  	
                                                    Administrative
      Committee

                                                  	
                                                    7

                                                  
	 
      	
                                                    5.3

                                                  	
                                                    Filing
      Claims

                                                  	
                                                    8

                                                  
	 
      	
                                                    5.4

                                                  	
                                                    Notification
      to Claimant

                                                  	
                                                    8

                                                  
	 
      	
                                                    5.5

                                                  	
                                                    Review
      Procedure

                                                  	
                                                    8

                                                  
	 
      	
                                                    5.6

                                                  	
                                                    Payment
      of Expenses

                                                  	
                                                    8

                                                  
	 
      	 
      	 
      	 
      
	
                                                    ARTICLE
      VI AMENDMENT AND TERMINATION

                                                  	
                                                    9

                                                  
	 
      	
                                                    6.1

                                                  	
                                                    Amendment

                                                  	
                                                    9

                                                  
	 
      	 
      	 
      	 
      
	
                                                    ARTICLE
      VII MISCELLANEOUS PROVISIONS

                                                  	
                                                    9

                                                  
	 
      	
                                                    7.1

                                                  	
                                                    Employment
      Relationship

                                                  	
                                                    9

                                                  
	 
      	
                                                    7.2

                                                  	
                                                    Facility
      of Payments

                                                  	
                                                    9

                                                  
	 
      	
                                                    7.3

                                                  	
                                                    Funding

                                                  	
                                                    9

                                                  
	 
      	
                                                    7.4

                                                  	
                                                    Anti-Assignment

                                                  	
                                                    10

                                                  
	 
      	
                                                    7.5

                                                  	
                                                    Unclaimed
      Interests

                                                  	
                                                    10

                                                  
	 
      	
                                                    7.6

                                                  	
                                                    References
      to Code, Statutes and Regulations

                                                  	
                                                    10

                                                  
	 
      	
                                                    7.7

                                                  	
                                                    Liability

                                                  	
                                                    10

                                                  
	 
      	
                                                    7.8

                                                  	
                                                    Tax
      Consequences of Participation

                                                  	
                                                    10

                                                  
	 
      	
                                                    7.9

                                                  	
                                                    Company
      as Agent for Related Employers

                                                  	
                                                    10

                                                  

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
        
           

        

        
          i

          
            

          

        

        
           

        

      

       

      
        
          
            
              
                	 
      	
                        7.10

                      	
                        Governing Law; Severability

                      	
                        10

                      
	 
      	
                        7.11

                      	
                        Taxes

                      	
                        11

                      

              

            

          

        

      

      

        
          
             

          

          
            ii

            
              

            

          

          
             

          

        

      GENESIS
ENERGY, LLC

      

      DEFERRED
COMPENSATION PLAN

      

      The
Genesis Energy, LLC Deferred Compensation Plan (the “Plan”) is hereby adopted
effective as of December 31, 2008 by Genesis Energy, LLC, a Delaware limited
liability company (the “Company”), for the benefit of select members of the
management of the Company and of its affiliated entities which participate in
this Plan with the consent of the Company.

      

      RECITALS

      

      A.       
     The Company desires to adopt the Plan in order to
provide certain of its officers or other management level employees with
incentive compensation that is deferred until after the employees’ separation
from service with the Company.

      

      B.         
   The Company intends for the Plan to continue to be an
unfunded, nonqualified deferred compensation arrangement as provided under the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and to
satisfy the requirements of a “top hat” plan thereunder and under Labor Reg.
Sec. 2520.104-23.

      

      C.         
   This Plan is intended to comply with the requirements of The
American Jobs Creation Act of 2004 (“AJCA”), Section 409A of the Internal
Revenue Code of 1986, as amended (“Code”), and final regulations and other
rulings issued by the Internal Revenue Service (“IRS”) thereunder.

      

      ARTICLE
I

      

      DEFINITIONS AND GENERAL
PROVISIONS

      

      1.1       
    Definitions.  Unless
the context requires otherwise, the terms defined in this Article shall have the
meanings set forth below unless the context clearly requires another
meaning.  When the defined meaning is intended, the term is
capitalized:

      

      (a)      
     Account.  The
bookkeeping account described in Section 3.1 under
which benefits and earnings are credited on behalf of a
Participant.

      

      (b)         
  Administrative
Committee.  A committee comprised of the members of the Audit
Committee, along with an equal number of other members of the Board who also
serve as officers of Denbury Resources Inc.

      

      (c)         
  Arbitrators.  Those
individuals chosen under the procedures set out in Exhibit B
hereto.

      

      (d)        
   Audit
Committee.  The Audit Committee as defined in the LLC
Agreement.

      

      (e)        
   Affiliate.  With
respect to any Person, any other Person that directly or indirectly controls, is
controlled by or is under common control with, the Person in
question.  As used in this definition of “Affiliate,” the term
“control” means either (i) the possession, directly or indirectly, of the power
to direct or cause the direction of the management and policies of a Person,
whether through ownership of voting securities, by contract or otherwise or (ii)
a direct or indirect equity interest of twenty percent (20%) or more in the
Person.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      (f)        
    Beneficiary.  The
person(s) entitled to receive any distribution hereunder upon the death of a
Participant. The Beneficiary for benefits payable under this Plan shall be the
beneficiary designated by the Participant in accordance with procedures
established by the Administrative Committee as of the Participant’s date of
death, or, in the absence of any such designation, the Participant’s
estate.

      

      (g)       
    Board.  The
Board of Directors of the Company.

      

      (h)        
   Cause.  Has
the meaning set forth in the LLC Agreement.

      

      (i)           
 Change of
Control.  Has the meaning set forth in the LLC
Agreement.

      

      (j)         
   Code.  The
Internal Revenue Code of 1986, as amended from time to time.

      

      (k)            Company.  Genesis
Energy, LLC.

      

      (l)        
    Director.  A
member of the Board of Directors of the Company who is not also a
Participant.

      

      (m)           Effective
Date.  December 31, 2008.

      

      (n)        
   Employer.  The
Company and any Affiliate thereof or successor thereto which adopts and
participates in the Plan.  Any Affiliate that has U.S. employees and
is a member of a controlled group of corporations or other business entities
within the meaning of Code Sections 414(b) and (c) that includes the Company
shall participate in the Plan.  Such participation in the Plan shall
continue only as long as the Affiliate remains a member of a controlled group of
corporations or other business entities within the meaning of Code Sections
414(b) and (c) that includes the Company.

      

      (o)       
    ERISA.  The
Employee Retirement Income Security Act of 1974, as amended from time to
time.

      

      (p)      
     Genesis.  Genesis
Energy, L.P.

      

      (q)         
  Good
Reason.  Has the meaning set forth in the LLC
Agreement.

      

      (r)          
  Grant.  The
specific grant of deferred compensation made to each Participant under the Plan,
in the form of the Deferred Compensation Grant attached hereto as Exhibit
A.

      

      (s)         
  Grant Date
Applicable IDR Percentage.  The Grant Date Applicable IDR
Percentage as of the date of Grant to a Participant, as determined under the
provisions of Section 3.02(c)(3) of the Limited Liability Company Agreement of
the Company.
 

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      (t)          
  LLC
Agreement.  The Limited Liability Company Agreement of the
Company.

      

      (u)         
  Participant.  An
individual officer or other management level employee of the Company who meets
the eligibility requirements for participation in the Plan as set forth in Article II and who is
entitled to benefits under the Plan.

      

      (v)        
   Person.  A
natural person or an entity.

      

      (w)           Plan.  This
Genesis Energy, LLC Deferred Compensation Plan, as set forth herein, and as such
Plan may be amended from time to time hereafter.

       

      (x)        
   Separation from
Service.  Subject to Section 7.1 hereof, a
Participant separates from service with the Employer if the Participant dies or
otherwise has a termination of employment with the Employer.  Whether
a termination of employment has occurred is determined based on whether the
facts and circumstances indicate that the Employer and the Participant
reasonably anticipated that no further services would be performed after a
certain date or that the level of bona fide services the Participant would
perform after such date (as an employee or independent contractor) would
permanently decrease to no more than 20 percent of the average level of bona
fide services performed over the immediately preceding 36-month period (or the
full period in which the Participant provided services to the Employer if the
Participant has been providing services for less than 36 months).  A
Participant will not be deemed to have experienced a Separation from Service if
such Participant is on military leave, sick leave, or other bona fide leave of
absence, to the extent such leave does not exceed a period of six months or, if
longer, such longer period of time during which a right to re-employment is
protected by either statute or contract.  If the period of leave
exceeds six months and the individual does not retain a right to re-employment
under an applicable statute or by contract, the employment relationship is
deemed to terminate on the first date immediately following such six-month
period.  If a Participant provides services both as an employee and as
a member of the Board, the services provided as a Director are generally not
taken into account in determining whether the Participant has a Separation from
Service as an employee for purposes of the Plan, in accordance with final
regulations under Code Section 409A.

      

      1.2         
  General
Provisions.  The
masculine wherever used herein shall include the feminine; singular and plural
forms are interchangeable.  Certain terms of more limited application
have been defined in the provisions to which they are principally
applicable.  The division of the Plan into Articles and Sections with
captions is for convenience only and is not to be taken as limiting or extending
the meaning of any of its provisions.

      

      ARTICLE
II

      

      PARTICIPATION

      

      2.1        
   General Eligibility
Conditions.  To
become a Participant in the Plan, an individual must be among a select group of
management employees designated as a Participant by the Company (or another
participating Employer) entitled to receive deferred compensation under the
Plan.  In order to receive a benefit under the Plan, however, a
Participant must also meet the requirements of Sections 2.2 and
2.3.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      2.2         
  Specific
Conditions for Active Participation.  To
participate actively in the Plan, a Participant must execute or acknowledge a
Grant.  A Grant must be executed and acknowledged within 30 days of
being provided to the officer or other management level employee of the Company,
or at such other time as may be required or permitted by regulations issued
under Code Section 409A.

      

      2.3       
    Termination of
Participation.  Once
the officer or other management level employee of the Company becomes a
Participant, such individual shall continue to be a Participant until such
individual ceases to have any vested interest in the Plan, including as a result
of distributions made to such Participant or his Beneficiary, if applicable, or
otherwise.

      

      2.4      
     Participation by Other
Employers.  Each
corporation or other entity with U.S. employees that is a member of the same
controlled group as the Company (within the meaning of Code Sections 414(b) and
(c)) shall be a participating Employer under the Plan unless determined
otherwise by the Company.  Participating Affiliates that cease to be a
member of the same controlled group as the Company within the meaning of Code
Sections 414(b) and (c) are no longer eligible to participate in the Plan
effective as of the date that they cease to qualify as a controlled group
member.  Participants of such an employer shall no longer be eligible
to participate effective as of the date that their employer becomes
ineligible.

      

      ARTICLE
III

      

      DEFERRED
COMPENSATION

      

      3.1         
  Record of
Account.  Solely
for the purpose of fixing the maximum amount of the Employer’s obligations to
each Participant or his beneficiaries under the Plan, the Employer will maintain
a separate bookkeeping record, an “Account,” for each Participant in the
Plan.  The Account will show the maximum amount of deferred
compensation which each Participant or his beneficiaries under the Plan are
entitled to earn, subject to the vesting and other financial requirements,
employment restrictions, and other conditions set out in each Participant’s
Grant.

      

      3.2        
   Confidentiality and
Non-Competition Agreement.  In
its discretion, the Employer may require any officer or other management level
employee selected to become a Participant in the Plan to execute a
Confidentiality and Non-Competition Agreement with the Employer in consideration
of the benefits to be provided hereunder.

      

      ARTICLE
IV

      

      DISTRIBUTION OF
BENEFITS

      

      4.1        
   Distribution
Timing.  Upon
his Separation from Service for any reason other than a Separation of Service
for Cause, a Participant shall receive, in a lump sum payment, that portion to
which he is entitled under this Plan and the Participant’s Grant, if any, of the
amounts reflected in his Account.  The Participant will receive such
distribution promptly, but not later than the first business day that is on or
after the 30th day after the date of the Participant’s Separation from Service,
provided that if the date of the Participant’s Separation from Service is such
that the Participant could receive the distribution pursuant to the preceding
sentence in either of two calendar years, then such distribution will be paid in
the calendar year that next begins immediately following the date of the
Participant’s Separation from Service.  Payments of such distributions
will be made in U.S. dollars or at the Participant’s election in common units of
Genesis.  Upon the Participant’s election (made within 15 days of his
Separation from Service) to receive common units of Genesis owned by the Company
or its Affiliates, the number of such common units to be distributed shall be
determined by dividing the amount of deferred compensation to be paid to
Participant by the average closing price of such common units on the American
Stock Exchange (or other exchange upon which Genesis’ common units are traded)
for the five business days following Participant’s Separation of
Service.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      4.2        
   Distribution upon
Death. In the
event of the death of the Participant while receiving benefit payments under the
Plan, the Beneficiary or Beneficiaries designated by the Participant shall be
paid any amounts due under the Plan as soon as practicable but not more than 90
days after the Participant’s death.

      

      4.3        
   Withdrawals for
Unforeseeable Emergency.  Upon
the occurrence of an unforeseeable emergency, the Participant shall be eligible
to receive payment of the amount necessary to satisfy such emergency plus
amounts necessary to pay taxes reasonably anticipated as a result of the
distribution, after taking into account the extent to which such hardship is or
may be relieved through reimbursement or compensation by insurance or otherwise
or by liquidation of the participant’s assets (to the extent such liquidation
would not itself cause severe financial hardship), or by cessation of deferrals
under the Plan. The amount determined to be properly distributable under this
section and applicable regulations under Code Section 409A shall be payable in a
single lump sum only.  For the purposes of this section, the term
“unforeseeable emergency” means a severe financial hardship to the Participant
resulting from an illness or accident of the Participant, the Participant’s
spouse, or a dependent of the Participant (as defined in Code Section 152
(without regard to Section 152(b)(1), (b)(2), and (d)(1)(B))); loss of the
Participant’s property due to casualty, including the need to rebuild a home
following damage not otherwise covered by insurance, for example, not as a
result of a natural disaster; or other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the control of the
Participant, including imminent foreclosure of or eviction from the
Participant’s primary residence, the need to pay for medical expenses, including
non-refundable deductibles, the cost of prescription drugs, and the need to pay
for funeral expenses of a spouse, beneficiary, or dependent.  It shall
be the responsibility of the Participant seeking to make a withdrawal under this
section to demonstrate to the Administrative Committee that an unforeseeable
emergency has occurred and to document the amount properly distributable
hereunder.  After a distribution on account of an unforeseeable
emergency, the terms of a Participant rights hereunder shall be limited to the
extent required under the provisions of Code Section 409A and subject to the
rules applicable thereto under the Plan.

      

      4.4         
  Acceleration of
Payment.  The
acceleration of the time and/or form of any payment determined in accordance
with the provisions of this Article IV above,
shall not be made except due to unforeseeable emergency, as described above, or
as set forth below and otherwise permitted by Code Section 409A and the Treasury
Regulations and other guidance issued thereunder:

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      (a)          
 Domestic
Relations Order.  A payment of all or part of the Participant’s
Account may be made to a spouse, former spouse or other dependent under the
terms of a domestic relations order (as defined in Code Section
414(p)(1)(B)).  The Administrative Committee shall determine whether a
payment should be made pursuant to the terms of a domestic relations order and
the time and form of such payment.

      

      (b)        
   Employment
Taxes.  A payment of all or part of the Participant’s
Account  may be made to the extent necessary to pay the Federal
Insurance Contributions Act (“FICA”) tax imposed under Code Sections 3101,
3121(a), and 3121(v)(2) on amounts deferred under the Plan (the “FICA Amount”),
income tax at source on wages imposed under Code Section 3401 or the
corresponding withholding provisions of applicable state, local, or foreign tax
laws as a result of the payment of the FICA Amount, and to pay the additional
income tax at source on wages attributable to the pyramiding Code Section 3401
wages and taxes.  The total payment under this Section shall not
exceed the aggregate of the FICA Amount and the income tax withholding related
to such FICA Amount.

      

      (c)       
    Payment of State, Local or
Foreign Taxes.  Payment may be made to reflect payment of
state, local or foreign tax obligations arising from participation in the Plan
that apply to an amount deferred under the Plan before the amount is paid or
made available to the Participant, plus the income tax at source on wages
imposed under Code Section 3401 as  a result of such payment;
provided, however, that the amount of the payment may not exceed the amount of
the taxes due, and the income tax withholding related to such state, local and
foreign tax amount.

      

      (d)       
    Income Inclusion under Code
Section 409A.  Payment may be made at any time the Plan fails
to meet the requirements of Code Section 409A and the Treasury Regulations
issued thereunder; provided, however, that payment cannot exceed the amount
required to be included in income as a result of the failure to
comply.

      

      (e)   
        Certain
Offsets.  Payment may be made as satisfaction of a debt of the
Participant to the Employer where: (1) the debt is incurred in the ordinary
course of the employment relationship; (2) the entire amount of the offset in
any of the Participant’s taxable years does not exceed $5,000; and (3) the
reduction is made at the same time and in the same amount as the debt otherwise
would have been due and collected from the Participant.

      

      4.5        
   Delay of
Payment.  Notwithstanding
anything in this Plan to the contrary, a Participant who is a “specified
employee” (as defined in Code Section 409A and the regulations thereunder) as of
the date of his Separation from Service and is entitled to a distribution due to
a Separation from Service may not receive a distribution under the Plan until a
date that is at least six months after the date of the Separation from Service
(or the date of the Participant’s death, if earlier).  The Participant
(or the Participant’s Beneficiary or Beneficiaries) will receive the full amount
to which he is entitled under the Plan in a lump sum on the earlier of (1) the
first business day that is at least six months and one day after the date of his
Separation from Service, or (2) promptly following the Participant’s
death.  In addition, the Company may in its discretion delay any
payment due under the Plan to the extent permitted by Code Section 409A and the
regulations thereunder.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      4.6          
 Assignment and
Assumption of Liabilities.  In
the discretion of the Company, upon the cessation of participation in the Plan
by any Participant solely due to the employer of that Participant no longer
qualifying as a member of the controlled group of the Company within the meaning
of Code Sections 414(b) and (c), all liabilities associated with the Account of
such Participant may be transferred to and assumed by the Participant’s employer
under a deferred compensation plan established by such employer that is
substantially identical to this Plan and that preserves the deferral and payment
elections in effect for the Participant under this Plan to the extent required
by Code Section 409A.  Any such Participant shall not be deemed to
have incurred a Separation from Service for purposes of the Plan by virtue of
his employer’s ceasing to be a member of the controlled group of the
Company.  The foregoing provision shall be interpreted and
administered in compliance with the requirements of Code Section
409A.

      

      ARTICLE
V

      

      PLAN
ADMINISTRATION

      

      5.1         
  Administration.  The
Plan shall be administered by the Administrative Committee as an unfunded
deferred compensation plan that is not intended to meet the qualification
requirements of Code Section 401 and that is intended to meet all applicable
requirements of Code Section 409A.

      

      5.2        
   Administrative
Committee.  The
Administrative Committee will operate and administer the Plan and shall have all
powers necessary to accomplish that purpose, including, but not limited to, the
discretionary authority to interpret the Plan, the discretionary authority to
determine all questions relating to the rights and status of Participants, and
the discretionary authority to make such rules and regulations for the
administration of the Plan as are not inconsistent with the terms and provisions
hereof or applicable law, as well as such other authority and powers relating to
the administration of the Plan; provided that the Administrative Committee may
delegate such administrative matters as it chooses to specifically designated
officers of the Company.  All decisions made by the Administrative
Committee shall be final, subject to the claims review procedures of Section
5.5.

      

      Without
limiting the powers set forth herein, the Administrative Committee shall have
the power (i) to change or waive any requirements of the Plan to conform with
Code Section 409A or other applicable law or to meet special circumstances not
anticipated or covered in the Plan; (ii) to determine the times and places for
holding meetings of the Administrative Committee and the notice to be given of
such meetings; (iii) to employ such agents and assistants, such counsel (who may
be counsel to the Company), and such clerical and other services as the
Administrative Committee may require in carrying out the provisions of the Plan;
and (iv) to authorize one or more of their number or any agent to execute or
deliver any instrument on behalf of the Administrative Committee.

      

      The
members of the Administrative Committee and the Audit Committee, and the Company
and its respective officers and directors, shall be entitled to rely upon all
valuations, certificates and reports furnished by any funding agent or service
provider, upon all certificates and reports made by an accountant, and upon all
opinions given by any legal counsel selected or approved by the Administrative
Committee, and the members of the Administrative Committee and the Audit
Committee, and the Company and its respective officers and directors, shall,
except as otherwise provided by law, be fully protected in respect of any action
taken or suffered by them in good faith in reliance upon any such valuations,
certificates, reports, opinions or other advice of a funding agent, service
provider, accountant or counsel.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      5.3       
    Filing
Claims.  Any
Participant, Beneficiary or other individual (hereinafter a “Claimant”) entitled
to benefits under the Plan, or otherwise eligible to participate herein, shall
be required to make a claim with the Administrative Committee (or its designee)
requesting payment or distribution of such Plan benefits (or written
confirmation of Plan eligibility, as the case may be), on such form or in such
manner as the Administrative Committee shall prescribe.  Unless and
until a Claimant makes proper application for benefits in accordance with the
rules and procedures established by the Administrative Committee, such Claimant
shall have no right to receive any distribution from or under the
Plan.

      

      5.4         
  Notification to
Claimant.  If
a Claimant’s application is wholly or partially denied, the Administrative
Committee (or its designee) shall, within 90 days, furnish to such Claimant a
written notice of its decision.  Such notices shall be written in a
manner calculated to be understood by such Claimant, and shall contain at least
the following information:

      

      (a)      
     the specific reason or reasons for such
denial;

      

      (b)      
     specific reference to pertinent Plan provisions
upon which such denial is based;

      

      (c)        
   a description of any additional material or information
necessary for such Claimant to perfect his claim, and an explanation of why such
material or information is necessary; and

      

      (d)        
   an explanation of the Plan’s claim review procedure describing
the steps to be taken by such Claimant, if he wishes to submit his claim for
review.

      

      5.5       
    Review
Procedure.  Within
60 days after the receipt of such notice from the Administrative Committee, such
Claimant, or the duly authorized representative thereof, may request, by written
application to the Plan, a review by the Arbitrators of the decision denying
such claim.  In connection with such review, such Claimant, or duly
authorized representative thereof, shall be entitled to receive any and all
documents pertinent to the claim or its denial and shall also be entitled to
submit issues and comments in writing.  The decision of the
Arbitrators upon such review shall be made promptly and not later than the time
periods set out in Exhibit B
hereto.  Any such decision on review shall be in writing and shall
include specific reasons for the decision and specific references to the
pertinent Plan provisions on which the decision is based.  In the
event of a genuine dispute regarding the amount or timing of payments under the
Plan, a delay in the payment of Plan benefits shall not cause a violation of
Code Section 409A to the extent such delay satisfies the conditions set forth in
Code Section 409A and the regulations thereunder.  If the review
procedures of this Section 5.5 are
invoked, the decision of the Arbitrators shall be final and
binding.

      

      5.6        
   Payment of
Expenses.  All
costs and expenses incurred in administering the Plan shall be paid by the
Company.

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      ARTICLE
VI

      

      AMENDMENT AND
TERMINATION

      

      6.1     
      Amendment.  The
Company has reserved, and does hereby reserve, the right at any time and from
time to time by action of the Administrative Committee to amend, modify or alter
any or all of the provisions of the Plan without the consent of any
Participants; provided, however, that no amendment shall operate retroactively
so as to affect adversely any rights to which a Participant may be entitled
under the provisions of the Plan as in effect prior to such
action.  Any such amendment, modification or alteration shall be
expressed in an instrument executed by an authorized officer or officers of the
Company, and shall become effective as of the date designated in such
instrument.

      

      ARTICLE
VII

      

      MISCELLANEOUS
PROVISIONS

      

      7.1       
    Employment
Relationship.  For
purposes of determining if there has been a Separation from Service, the
Employer is defined as provided in Treasury Regulations Section
1.409A-1(h)(3).  Nothing in the adoption of the Plan or the crediting
of deferred compensation shall confer on any Participant the right to continued
employment by the Company or an Affiliate of the Company, or affect in any way
the right of the Company or such Affiliate to terminate his employment at any
time.  Any question as to whether and when there has been a Separation
from Service of a Participant as an employee for purposes of the Plan, and the
cause of such Separation from Service, shall be determined by the Administrative
Committee, and its determination shall be final.

      

      7.2      
     Facility of
Payments.  Whenever,
in the opinion of the Administrative Committee, a person entitled to receive any
payment, or installment thereof, is under a legal disability or is unable to
manage his financial affairs, the Administrative Committee shall have the
discretionary authority to direct payments to such person’s legal representative
or to a relative or friend of such person for his benefit; alternatively, the
Administrative Committee may in its discretion apply the payment for the benefit
of such person in such manner as the Administrative Committee deems
advisable.  Any such payment or application of benefits made in good
faith in accordance with the provisions of this Section shall be a complete
discharge of any liability of the Administrative Committee with respect to such
payment or application of benefits.

      

      7.3       
    Funding.  All
benefits under the Plan are unfunded and the Company shall not be required to
establish any special or separate fund or to make any other segregation of
assets in order to assure the payment of any amounts under the
Plan.  The right of a Participant or his Beneficiary to receive a
distribution hereunder shall be an unsecured claim against the general assets of
the Company, and neither the Participant nor his Beneficiary shall have any
rights in or against any amounts credited under the Plan or any other specific
assets of the Company.  All amounts credited under the Plan to the
benefit of a Participant shall constitute general assets of the Company and may
be disposed of by the Company at such time and for such purposes as it may deem
appropriate.

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      7.4       
    Anti-Assignment.  No
right or benefit under the Plan shall be subject to anticipation, alienation,
sale, assignment, pledge, encumbrance or charge; and any attempt to anticipate,
alienate, sell, assign, pledge, encumber or charge the same shall be
void.  No right or benefit shall be liable for or subject to the
debts, contracts, liabilities, or torts of the person entitled to such
benefits.  If a Participant, a Participant’s spouse, or any
Beneficiary should become bankrupt or attempt to anticipate, alienate, sell,
assign, pledge, encumber or charge any right to benefits under the Plan, then
those rights, in the discretion of the Administrative Committee, shall
cease.  In this case, the Administrative Committee may hold or apply
the benefits at issue or any part thereof for the benefit of the Participant,
the Participant’s spouse, or Beneficiary in such manner as the Administrative
Committee may deem proper.

      

      7.5        
   Unclaimed
Interests.  If
the Administrative Committee shall at any time be unable to make distribution or
payment of benefits hereunder to a Participant or any Beneficiary of a
Participant by reason of the fact that his whereabouts is unknown, the
Administrative Committee shall so certify, and thereafter the Administrative
Committee shall make a reasonable attempt to locate such missing
person.  If such person continues missing for a period of three years
following such certification, the interest of such Participant in the Plan
shall, in the discretion of the Administrative Committee, be distributed to the
Beneficiary of such missing person.

      

      7.6           References to Code, Statutes
and Regulations.  Any
and all references in the Plan to any provision of the Code, ERISA, or any other
statute, law, regulation, ruling or order shall be deemed to refer also to any
successor statute, law, regulation, ruling or order.

      

      7.7       
    Liability.  The
Company, and its directors, officers and employees, shall be free from
liability, joint or several, for personal acts, omissions, and conduct, and for
the acts, omissions and conduct of duly constituted agents, in the
administration of the Plan, except to the extent that the effects and
consequences of such personal acts, omissions or conduct shall result from
willful misconduct.  However, this Section shall not operate to
relieve any of the aforementioned from any responsibility or liability for any
responsibility, obligation, or duty that may arise under ERISA.

      

      7.8        
   Tax
Consequences of Participation.  The
income tax consequences to Participants of Grants under the Plan shall be
determined under applicable federal, state and local tax law and
regulation.

      

      7.9      
     Company as Agent for Related
Employers.  Each
corporation which shall become a participating Employer pursuant to Section 2.4 by so
doing shall be deemed to have appointed the Company its agent to exercise on its
behalf all of the powers and authority hereby conferred upon the Company by the
terms of the Plan, including but not limited to the power to amend and terminate
the Plan.  The Company’s authority shall continue unless and until the
related Employer terminates its participation in the Plan.

      

      7.10          Governing Law;
Severability.  The
Plan shall be construed according to the laws of the State of Texas, including
choice of law provisions, and all provisions hereof shall be administered
according to the laws of that State, except to the extent preempted by federal
law.  A final judgment in any action or proceeding shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any
other manner provided by law.  In the event that any one or more of
the provisions of the Plan shall for any reason be held to be invalid, illegal,
or unenforceable, such invalidity, illegality or unenforceability shall not
affect any other provision of the Plan, but the Plan shall be construed as if
such invalid, illegal, or unenforceable provisions had never been contained
herein, and there shall be deemed substituted such other provision as will most
nearly accomplish the intent of the parties to the extent permitted by
applicable law.

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      7.11          Taxes.  The
Company shall be entitled to withhold any taxes from any distribution hereunder
or from other compensation then payable, as it believes necessary, appropriate,
or required under relevant law.

      

      [SIGNATURE
PAGE FOLLOWS]

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      

      
        
          
            
              
                
                  	 
      	
                          Genesis
      Energy, LLC

                        
	 
      	 
      
	 
      	 
      
	 
      	By:	
                          /s/ Ross A. Benavides

                        
	 
      	
                          Name:  
      

                        	
                          Ross
      A. Benavides

                        
	 
      	
                          Title:

                        	
                          Secretary

                        

                

              

               

              [Signature Page to Deferred
Compensation Plan]

               

            

          

        

      

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      EXHIBIT
A

      

      Grant
Date:  __________, 2008

      

      FORM
OF

      

      DEFERRED
COMPENSATION GRANT

      

      GENESIS
ENERGY, LLC

      

      This Grant of Deferred Compensation (“Grant”) is made effective
____________, 2008 (“Grant
Date”) between Genesis Energy, LLC (the “Company”) and [________], an
officer and employee of the Company (“Participant”).

      

      WHEREAS, the Company desires
to grant Participant the opportunity to earn deferred compensation in connection
with Participant’s entry into the Limited Liability Company Agreement (the
“Agreement”) of the
Company as a Class B Member; and

      

      WHEREAS, the Company has
adopted the Genesis Energy, LLC Deferred Compensation Plan (the “Plan”) effective as of
December 31, 2008 governing the terms, conditions and provisions of the grant to
Participant of deferred compensation made under the Plan, including under this
Grant;

      

      NOW THEREFORE, in
consideration of the mutual covenants hereinafter set forth and for other good
and valuable consideration, the parties agree as follows:

      

      1.           
 Grant of
Deferred Compensation.  The Company
hereby grants to Participant maximum deferred compensation of $[_______________]
(“Maximum Deferred Compensation
Amount”), which represents Participant’s Initial IDR Share (as defined in
the Agreement) as of the Grant Date, which is the maximum deferred compensation
which Participant is entitled to earn under the terms and conditions set forth
herein and in the Plan, including, without limitation, the vesting and other
financial requirements, employment restrictions and other conditions more
specifically set forth herein and in the Plan, subject only to Participant’s
execution of this Grant.  The Company and Participant understand and
agree that this Grant is in all respects subject to the terms, definitions and
provisions of the Plan and the Agreement, all of which are incorporated herein
by reference, except to the extent otherwise expressly provided in this Grant,
and terms not otherwise defined in this Grant or the Plan shall have the
meanings set forth in the Agreement.

      

      2.           
  Termination
for Cause.  If there is a Separation from Service of a
Participant due to Participant’s employment being terminated by the Company for
Cause, Participant will not be entitled to receive any deferred compensation
hereunder or under the Plan.

      

      3.        
    Deferred
Compensation upon Separation from Service. If there is a Separation
from Service of a Participant with the Company other than for Cause, Participant
shall be entitled to be paid, according to the distribution provisions of the
Plan, that portion of the Maximum Deferred Compensation Amount obtained by
multiplying (i) Participant’s Vesting Percentage determined under the provisions
of Section 4
below, times (ii) the lesser of (a) the Maximum Deferred Compensation Amount or
(b) Participant’s Current IDR Share as of the date of Participant’s Separation
from Service.

      
        
           

        

        
          A-1

          
            

          

        

        
           

        

      

      4.          
   Vesting
Percentage(s).  The “Vesting
Percentage” for purposes of determining that portion of the Maximum Deferred
Compensation Amount to which Participant is entitled upon his Separation from
Service other than for Cause shall be determined as of the date of Participant’s
Separation from Service as follows:  

      

      (a)          
 Change of
Control.  Upon a Change of Control, as defined in the Plan, or
Separation from Service (other than due to Participant’s employment being
terminated by the Company for Cause, or a voluntary termination by Participant
of his employment other than for Good Reason) during the period beginning six
months prior to a Change of Control and ending on such Change of Control,
Participant’s Vesting Percentage shall be 100%;

      

      (b)            Participant’s
Voluntary Termination of Employment.  If Participant
voluntarily terminates his employment by the Company other than for Good Reason,
his Vesting Percentage shall be the percentage specified below based upon the
date of upon Participant’s Separation from Service:

      

      
        
          
            
              
                
                  	
                          (i)    

                        	
                          Separation
      from Service prior to the 1st anniversary of the Grant
    Date:

                        	
                          0%

                        
	 	 	 
	
                          (ii)    

                        	
                          Separation
      from Service on or after the 1st anniversary, and prior to the 2nd
      anniversary, of the Grant Date:

                        	
                          25%

                        
	 	 	 
	
                          (iii)    

                        	
                          Separation
      from Service on or after the 2nd anniversary, and prior to the 3rd
      anniversary, of the Grant Date:

                        	
                          50%

                        
	 	 	 
	
                          (iv)    

                        	
                          Separation
      from Service on or after the 3rd anniversary, and prior to the 4th
      anniversary, of the Grant Date:

                        	
                          75%

                        
	 	 	 
	
                          (v)    

                        	
                          Separation
      from Service after the 4th anniversary of the Grant Date:

                        	
                          100%

                        

                

              

            

          

        

      

      

      (c)        
   Participant’s
Termination of Employment for Good Reason.  If Participant
voluntarily terminates his employment by the Company for Good Reason,
Participant’s Vesting Percentage shall be 100%.

      

      (d)          
 Other
Employment Terminations. If Participant’s employment by the Company is
terminated for any reason other than those circumstances covered by Sections 4(a), 4(b)
or 4(c) above,
his Vesting Percentage shall be that percentage determined under the provisions
of Section 4(b)
above, unless as of the date of Participant’s Separation of Service the
Participant’s Applicable IDR Percentage is in excess of 8%, in which case the
Participant’s Vesting Percentage shall be:

      
        
           

        

        
          A-2

          
            

          

        

        
           

        

      

      (i)         
   100% for that portion of the Maximum Deferred Compensation
Amount or Current IDR Share, as applicable, which is attributable to the portion
of Participant’s Applicable IDR Percentage of 8%; and

      

      (ii)       
    determined under the provisions of Section 4(b) above
for that portion of the Participant’s Maximum Deferred Compensation Award or
Current IDR Share, as applicable which is attributable to Participant’s
Applicable IDR Percentage in excess of 8%.

      

      5.       
      Withholding.  On the date any
amounts are paid under the terms of this Grant, the minimum withholding required
to be made by the Company shall be paid by Participant to the Company in cash,
or the Participant, in his sole discretion, may direct that the Company withhold
cash at such rate or at any rate which is in excess of the minimum withholding
rate described in the preceding sentence, but not in excess of the highest
incremental tax rate for Participant, and such additional directed withholding
will be made in the same manner as described in the first phrase of this
sentence, and shall be further subject to the provisions of Section 4.05 of the
Agreement.

      

      6.       
     No
Transfers Permitted.  The rights under
this Grant are not transferable in whole or in part by the Participant otherwise
than by will or the laws of descent and distribution, and as long as Participant
lives, only Participant or his or her guardian or legal representative shall
have the right to receive and retain Distributions or other rights under this
Grant.

      

      7.        
    No Right
To Continued Employment.  Neither the
Agreement nor this Grant shall confer upon the Participant any right with
respect to continuation of employment by the Company, or any right to provide
services to the Company, nor shall they interfere in any way with Participant’s
right to terminate employment, or the Company’s right to terminate Participant’s
employment, at any time, with or without Cause (as defined in the
Agreement).

      

      8.           
  Governing
Law.  WITHOUT LIMITATION, THIS GRANT SHALL
BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
TEXAS.

      

      9.           
  Binding
Effect.  This Grant shall
inure to the benefit of and be binding upon the heirs, executors,
administrators, successors and assigns of the parties hereto.

      

      10.       
    Severability.  If any provision
of this Grant is declared or found to be illegal, unenforceable or void, in
whole or in part, the remainder of this Grant will not be affected by such
declaration or finding and each such provision not so affected will be enforced
to the fullest extent permitted by law.

      

      11.       
    Entire
Agreement.  This Grant, along
with the other documents and agreements entered into by the Participant and the
Company and/or its affiliates on the Grant Date, contain the entire agreement
among the parties hereto and their predecessors with respect to the subject
matter contained herein and therein, and replace and supersede all prior
discussions and communications, written or oral, among the Company, the
Participant, their respective predecessors or others, regarding compensation,
whether cash or otherwise, contemplated to be provided to the Participant or any
rights in the Company or its predecessor, contemplated to be provided to the
Participant.

      
        
           

        

        
          A-3

          
            

          

        

        
           

        

      

       IN WITNESS WHEREOF, the
Company has caused these presents to be executed on its behalf and its corporate
seal to be affixed hereto by its duly authorized representative and the
Participant has hereunto set his or her hand and seal, all on the day and year
first above written.

      

      Dated as
of this __ day of ______________, 2008.

      

      
        
          	 
      	
                  GENESIS
      ENERGY, LLC

                
	 
      	 
      
	 
      	
                  By:

                	 
      
	 
      	 
      	
                  Ross
      A. Benavides

                
	 
      	 
      	
                  Secretary

                

        

      

      
        
           

        

        
          A-4

          
            

          

        

        
           

        

      

      ACKNOWLEDGMENT

      

      The
undersigned hereby acknowledges (i) my receipt of this Grant, (ii) my
opportunity to review the Plan, (iii) my opportunity to discuss this Grant with
a representative of the Company, and my personal advisors, to the extent I deem
necessary or appropriate, (iv) my understanding of the terms and provisions of
the Grant and the Plan, and (v) my understanding that, by my signature below, I
am agreeing to be bound by all of the terms and provisions of this Grant and the
Plan.

      

      Dated as
of this ________ day of __________, 2008.

      

      
        
          
            	 
      	
                    PARTICIPANT

                  
	 
      	 
      
	 
      	 
      
	 
      	 
      

          

        

      

      
        
           

        

        
          A-5

          
            

          

        

        
           

        

      

      EXHIBIT
B

      

      ARBITRATION
PROVISIONS

      

      1.          
  Applicable
Law/Arbitration.  If on one hand a Participant or Participants
under the Genesis Energy, LLC Deferred Compensation Plan (the “Plan”) and on the
other hand either the Company or the Class A Member of the Company (the
Participants, the Company and/or the Class A Member of the Company collectively
the “Claimants”) are
unable to agree upon any matter arising under the Plan or wish to appeal a
decision by the Administrative Committee under the Plan, then within a
reasonable amount of time any such disagreement (a “Dispute”) shall be
referred to, and finally resolved by, binding arbitration.  Venue for
such arbitration shall be in Houston, Texas.  Except for the limited
rights described in Paragraphs 8 and 10 below, the Participants waive their
right to file a lawsuit in a court of law to prosecute any Dispute.

      

      2.       
     Negotiation.  When a
Dispute has arisen, any Claimant (each Claimant, a “Party”) may give the
other Party written notice of the Dispute (“Dispute Notice”). In
the event that a Dispute Notice is given, the Parties shall attempt to resolve
the Dispute promptly by further negotiation.  In connection with such
negotiation, all reasonable requests for information made by one Party to the
other will be honored.

      

      3.            
 Confidentiality of
Settlement Negotiations.  All negotiations regarding Disputes
are confidential and shall be treated as compromise and settlement negotiations
for purposes of applicable rules of evidence and any additional confidentiality
protections provided by applicable law.

      

      4.             Commencement of
Arbitration.  If the Dispute has not been resolved by
negotiation within thirty (30) days of the Dispute Notice, or if the Parties
have failed to confer within thirty (30) days after delivery of the Dispute
Notice, either Party may then initiate arbitration by providing written notice
of arbitration to the other Party.  In order to be valid, the notice
of arbitration shall contain a precise and complete statement of the Dispute.
Within thirty (30) days of receipt of the notice of arbitration, the receiving
Party shall respond by providing a written response which shall include its
precise and complete response to the Dispute, and which includes any counter
Dispute that the responding Party may have.

      

      5.             Selection of
Arbitrator(s).  The arbitration may be conducted and decided by
a single person that is mutually agreeable to the Parties and knowledgeable and
experienced in the type of matter that is the subject of the Dispute if a single
arbitrator can be agreed upon by the Parties.  If the Parties cannot
agree on a single arbitrator within ten (10) days of the date of the response to
the notice of arbitration, then the arbitration shall be determined by a panel
of three (3) arbitrators.  To select the three arbitrators, each Party
shall, within ten (10) days of the expiration of the foregoing ten day period,
select a person that it believes has the qualifications set forth above as its
designated arbitrator, and such arbitrators so designated shall mutually agree
upon a similarly qualified third person to complete the arbitration panel and
serve as its chairman.  In the event that the persons selected by the
Parties are unable to agree upon a third member of the arbitration panel within
ten (10) days after the selection of the latter of the two arbitrators, then
he/she shall be selected from the CPR (as defined below) panel using the CPR
rules.  Once selected, no arbitrator shall have any ex parte communications with
either Party.

      
        
           

        

        
          B-1

          
            

          

        

        
           

        

      

      6.           
 Arbitration
Process.  The arbitration hearing shall commence within a
reasonable time after the selection of the arbitrator(s), as set by the
arbitrator(s).  The arbitrator(s), shall allow the Parties to engage
in pre-hearing discovery, to include exchanging (i) requests for and production
of relevant documents, (ii) up to fifteen (15) interrogatories, (iii) up to
fifteen (15) requests for admissions, and producing for deposition and at the
arbitration hearing, up to four (4) persons within each Parties’
control.  Any additional discovery shall only occur by agreement of
the Parties or as ordered by the arbitrator(s) upon a finding of good
cause.  The arbitration shall be conducted under the rules of the CPR
International Institute for Conflict Prevention & Resolution (“CPR”) in effect on
the date of this Agreement for dispute resolution rules for non-administered
arbitration of business disputes.  The Parties may agree on such other
rules to govern the arbitration that are not set out in this provision as they
may mutually deem necessary.

      

      7.        
    Arbitration
Decision.  The arbitrator(s) shall have the power to award
interim relief, and to grant specific performance.  Except as may be
specifically limited elsewhere in this Agreement, the arbitrator’s decision may
be based on such factors and evidence as the arbitrator(s) deems
fit.  The arbitrator(s) shall be required to render a written decision
to the Parties no later than thirty (30) days after the completion of the
hearing.

      

      8.          
  Arbitration
Award.  The award of a majority of the arbitrator(s) shall be
final, conclusive and binding.  The award rendered by the
arbitrator(s) may be entered in any court having jurisdiction in respect
thereof, including any court in which an injunction may have been
sought.  For ten (10) days following the rendering of the arbitrator’s
decision, each of the Parties shall have the right to make a written request for
clarification of any aspect of the decision, or a correction of any manifest
error.

      

      9.            
Arbitration
Costs.  Prior to the entry of the award, if there is but one
arbitrator, each Party shall pay for one half of the fees of the arbitrator and
costs of administering the arbitration including any filing fees.  If
there are three arbitrators, each Party shall pay the fees of its respective
Party-selected arbitrator and one-half (1/2) of the costs of the third
arbitrator and one-half (1/2) of the costs of administering the
arbitration.  The arbitrator(s) may assess all arbitrator(s)’ fees and
costs of the arbitration against either Party and may award to either Party up
to all its reasonable attorneys fees and other of its out of pocket costs of the
arbitration.

      

      10.         
  Injunctive
Relief.  With respect to the Dispute, nothing in this Exhibit B shall
prevent a Party from immediately seeking injunctive relief in a court to
maintain the status quo during the arbitration.

       

       

      B-2

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