Document:

Exhibit

SUPPLEMENTAL INDENTURE

SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of June 19, 2015, among Delaware Pipeline Company LLC, a Delaware limited liability company, and Delaware City Logistics Company LLC, a Delaware limited liability company (each, a “Guaranteeing Subsidiary” and together, the “Guaranteeing Subsidiaries”), PBF Logistics LP, a Delaware limited partnership (“PBFX”), PBF Logistics Finance Corporation, a Delaware corporation (together with PBFX, the “Issuers”), and Deutsche Bank Trust Company Americas, as trustee under the Indenture referred to below (the “Trustee”).

WITNESSETH

WHEREAS, the Issuers have heretofore executed and delivered to the Trustee an indenture (the “Indenture”), dated as of May 12, 2015 providing for the issuance of 6.875% Senior Notes due 2023 (the “Notes”);

WHEREAS, the Indenture provides that under certain circumstances each Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which such Guaranteeing Subsidiary shall unconditionally guarantee all of the Issuers’ Obligations under the Notes and the Indenture on the terms and conditions set forth herein (the “Note Subsidiary Guarantee”); and

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiaries and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

1.CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

2.AGREEMENT TO GUARANTEE. Each Guaranteeing Subsidiary acknowledges that it has received and reviewed a copy of the Indenture and all other documents it deems necessary to review in order to enter into this Supplemental Indenture, and acknowledges and agrees to (i) join and become a party to the Indenture as indicated by its signature below; (ii) be bound by the Indenture, as of the date hereof, as if made by, and with respect to, each signatory hereto; and (iii) perform all obligations and duties required of a Subsidiary Guarantor pursuant to the Indenture. Each Guaranteeing Subsidiary hereby agrees to provide an unconditional Note Subsidiary Guarantee on the terms and subject to the conditions set forth in the Indenture, including, but not limited to, Article 10 thereof.

3.EXECUTION AND DELIVERY. Each Guaranteeing Subsidiary agrees that the Note Subsidiary Guarantee shall remain in full force and effect notwithstanding the absence of the endorsement of any notation of such Note Subsidiary Guarantee on the Notes.

4.NO RECOURSE AGAINST OTHERS. No past, present or future director, officer, employee, incorporator, stockholder or agent of a Guaranteeing Subsidiary, as such, shall have any liability for any obligations of the Issuers or any Guaranteeing Subsidiary under the Notes, any Note Subsidiary Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes.

5.NEW YORK LAW TO GOVERN. THE LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE.

6.COUNTERPARTS. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. This Supplemental Indenture may be executed in multiple counterparts which, when taken together, shall constitute one instrument. The exchange 

of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmissions shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

7.EFFECT OF HEADINGS. The Section headings herein are for convenience only and shall not affect the construction hereof.

8.THE TRUSTEE. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiaries and the Issuers.

9.BENEFITS ACKNOWLEDGED. Each Guaranteeing Subsidiary’s Note Subsidiary Guarantee is subject to the terms and conditions set forth in the Indenture. Each Guaranteeing Subsidiary acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and this Supplemental Indenture and that the guarantee and waivers made by it pursuant to its Note Subsidiary Guarantee are knowingly made in contemplation of such benefits.

10.SUCCESSORS. All agreements of each Guaranteeing Subsidiary in this Supplemental Indenture shall bind its successors, except as otherwise provided in this Supplemental Indenture. All agreements of the Trustee in this Supplemental Indenture shall bind its successors.

[Remainder of page intentionally left blank]

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first above written.

	
				
	 
	 
	 
	 

	 
	 
	 
	GUARANTEEING SUBSIDIARIES:

	 
	 
	 
	DELAWARE PIPELINE COMPANY LLC

	 
	 
	 
	 

	 
	 
	By:
	/s/Jeffrey Dill

	 
	 
	Name:
	Jeffrey Dill

	 
	 
	Title:
	Secretary

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	DELAWARE PIPELINE COMPANY LLC

	 
	 
	 
	 

	 
	 
	By:
	/s/Jeffrey Dill

	 
	 
	Name:
	Jeffrey Dill

	 
	 
	Title:
	Secretary

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	ISSUER:

	 
	 
	 
	PBF LOGISTICS LP

	 
	 
	By:
	PBF Logistics GP LLP, its general partner

	 
	 
	 
	 

	 
	 
	By:
	/s/Jeffrey Dill

	 
	 
	Name:
	Jeffrey Dill

	 
	 
	Title:
	Secretary

	 
	 
	 
	 

	 
	 
	 
	PBF LOGISTICS FINANCE CORPORATION

	 
	 
	 
	 

	 
	 
	By:
	/s/Jeffrey Dill

	 
	 
	Name:
	Jeffrey Dill

	 
	 
	Title:
	Secretary

	
				
	 
	 
	 
	 

	 
	 
	 
	TRUSTEE:

	 
	 
	 
	DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee

	 
	 
	By:
	Deutsche Bank National Trust Bank

	 
	 
	 
	 

	 
	 
	By:
	/s/Irina Golovashchuk

	 
	 
	Name:
	Irina Golovaschchuk

	 
	 
	Title:
	Vice President

	 
	 
	 
	 

	 
	 
	By:
	/s/Jeffrey Schoenfeld

	 
	 
	Name:
	Jeffrey Schoenfeld

	 
	 
	Title:
	Vice PresidentExhibit

Exhibit 10.42

EP ENERGY CORPORATION 
2014 OMNIBUS INCENTIVE PLAN

Notice of Performance Unit Grant

You (the “Grantee”) have been granted the following award of Performance Units pursuant to the EP Energy Corporation 2014 Omnibus Incentive Plan (the “Plan”):

	
		
	Name of Grantee:
	 

	Number of Performance Units
	 

	Target Value Per Unit
	$100

	Effective Date of Grant:
	 

	Performance Period(s):
	[insert performance period(s)]

	Vesting and Settlement Date
	Subject to the terms of the Plan and the Performance Unit Award Agreement attached hereto, one-third of the Performance Units shall vest and be settled following the end of each Performance Period set forth above.  

Settlement of each tranche of the award shall occur within 75 days following the end of the applicable Performance Period and Grantee must be employed by the Company on the settlement date to receive the payout. 

	Form of Settlement
	Shares of Class A Common Stock of EP Energy Corporation (the “Company”), par value $0.01 per share (“Shares”), or cash, as determined by the Plan Administrator in its sole discretion

By your electronic acceptance/signature, you agree and acknowledge that this Performance Unit award is granted under and governed by the terms and conditions of the Plan and the attached Performance Unit Award Agreement, which are incorporated herein by reference.  

	
		
	 
	EP Energy Corporation

By:

Title:_____________________________

EP ENERGY CORPORATION
2014 OMNIBUS INCENTIVE PLAN

Performance Unit Award Agreement

SECTION 1.GRANT OF PERFORMANCE UNITS

(a)    Performance Units.  On the terms and conditions set forth in the Notice of Performance Unit Grant and this Performance Unit Award Agreement (the “Agreement”), the Company grants to the Grantee on the Effective Date of Grant the Performance Units set forth in the Notice of Performance Unit Grant.  
(b)    Plan and Defined Terms.  The Performance Units are granted pursuant to the Plan.  All terms, provisions, and conditions applicable to the Performance Units set forth in the Plan and not set forth herein are hereby incorporated by reference herein.  To the extent any provision hereof is inconsistent with a provision of the Plan, the provisions of the Plan will govern.  All capitalized terms that are used in the Notice of Performance Unit Grant or this Agreement and not otherwise defined therein or herein shall have the meanings ascribed to them in the Plan.
SECTION 2.    VALUE OF PERFORMANCE UNITS

(a)    Determination of Value.  The value of a Performance Unit is based on the relative position of the average total shareholder return (“TSR”) of the Company’s Class A Common Stock during the Performance Period, compared to the TSR of each member of the Peer Group during the same Performance Period, as provided in the following table:
	
		
	Relative TSR Position Compared to Peer Group
	Value of 
Performance Unit*

	Below 25th Percentile
	$0

	25th Percentile
	$50

	50th Percentile
	$100

	75th Percentile or Higher
	$200

 
* The value of the Performance Unit shall be adjusted by straight-line interpolation for a Relative TSR Position between 25th Percentile and 50th Percentile, and between 50th Percentile and 75th Percentile; provided, however, that the maximum value of each Performance Unit is $100 if the absolute TSR for the Company’s stock is negative (i.e., without comparison to the TSR of the Peer Companies).
(b)    TSR.  TSR will be determined using the volume-weighted average share price of the relevant share during the 20 business day period ending on the first and last business days of the Performance Period, and assuming that any dividends paid are reinvested as of the ex-dividend date.
(c)    Peer Group.  For purposes of this Award, the Peer Group for the Performance Periods shall include: [__insert peer group companies __].  Notwithstanding the above, should any member of the Peer Group cease to provide a meaningful comparison for purposes of this award as a result of mergers, acquisitions, bankruptcies, changes in business or other extraordinary or unforeseeable events, the Plan Administrator in its sole and absolute discretion may eliminate and/or replace such member.  In addition and for purposes of clarity, the calculation of the average TSR for the Peer Group over the applicable Performance Period shall not include the TSR of the Company’s Class A Common Stock.
SECTION 3.    FORM OF SETTLEMENT
The value of each vested Performance Unit shall be settled in the form of Shares or paid in cash to the Participant (or, if the Participant is not living at the time of settlement, to the Participant’s beneficiary), as determined by the Plan Administrator in its sole discretion.  If the Plan Administrator elects to settle the Performance Units in the form of Shares, the value of each vested Performance Unit shall be converted into an equivalent number of Shares at the Fair Market Value of a Share on the last day of the applicable Performance Period.  The settlement, be it in Shares or cash, shall be made within 75 days after the end of the applicable Performance Period and the Grantee must be employed on the settlement date to receive the payout, except as otherwise provided in Section 4 below; provided that, to the extent required by Section 162(m) of the Code, no payments will be made until the Plan Administrator certifies that the performance goals have been attained.
SECTION 4.    VESTING AND FORFEITURE 
(a)    Vesting Period.  The Performance Units shall vest and be settled (rounded down to the nearest whole unit) in accordance with the vesting schedule set forth in the Notice of Performance Unit Grant, subject, however to the rules set forth in Sections 4(b) and 4(c) below.
(b)    Termination of Employment.  Except as set forth in the Plan or otherwise provided below, if the Grantee’s employment is terminated for any reason before the applicable settlement date, all unvested Performance Units shall be canceled immediately and shall not be payable.
(i)    Termination due to Death.  Notwithstanding Section 4(b) above, if the Grantee’s employment terminates due to the Grantee’s death, any outstanding Performance Units shall vest in full and be settled at the Target Value set forth in the Notice of Performance Unit Grant.

(c)    Change in Control.  Upon the occurrence of a Change in Control on or before the last day of the Performance Period, all outstanding Performance Units shall vest in full upon the Change in Control and be settled based on actual performance, after adjusting the Performance Period to end on the last business day immediately prior to the Change in Control.  Settlement shall occur within 30 days after the Change in Control.
SECTION 5.    MISCELLANEOUS PROVISIONS

(a)    Tax Withholding.  Pursuant to Section 17.8 of the Plan, the Plan Administrator shall have the power and right to deduct or withhold, or require the Grantee to remit to the Company, an amount sufficient to satisfy any federal, state and local taxes (including the Grantee’s FICA obligations) required by law to be withheld with respect to this Award.  

(b)    Ratification of Actions.  By accepting this Agreement, the Grantee and each person claiming under or through the Grantee shall be conclusively deemed to have indicated the Grantee’s acceptance and ratification of, and consent to, any action taken under the Plan or this Agreement and Notice of Performance Unit Grant by the Company or the Plan Administrator.

(c)    No Rights to Employment.  The Grantee acknowledges and agrees that the vesting set forth in the Notice of Performance Unit Grant and this Agreement shall apply only if the Grantee provides continuous services to the Company during the Performance Period, and that any such services (as an employee or otherwise) remain at the will of the Company.  The Participant further acknowledges that nothing in this Award or the Plan constitutes an express or implied promise of continued engagement as an employee or consultant.

(d)    Choice of Law.  This Agreement and the Notice of Performance Unit Grant shall be governed by, and construed in accordance with, the laws of Texas, without regard to any conflicts of law or choice of law rule or principle that might otherwise cause the Agreement or Notice of Performance Unit Grant to be governed by or construed in accordance with the substantive law of another jurisdiction.
(e)    Severability.  In the event any provision of this Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions of this Agreement, and this Agreement shall be construed and enforced as if such illegal or invalid provision had not been included.
(f)    References to Plan.  All references to the Plan shall be deemed references to the Plan as may be amended from time to time.
(g)    Tax Issues.  This Award is not intended to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code and the provisions hereof shall be interpreted and administered consistently with such intent.  This Award is intended to qualify as performance-based compensation within the meaning of Section 162(m) of the Code.

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