Document:

TLLP EX.10.3 6.30.2015

Exhibit 10.3

AMENDMENT NO. 2 TO THE THIRD AMENDED AND RESTATED OMNIBUS AGREEMENT
THIS AMENDMENT NO. 2 TO THE THIRD AMENDED AND RESTATED OMNIBUS AGREEMENT (the “Amendment No. 2”), is entered into and executed on August 3, 2015, and effective as of July 1, 2015 (the “Amendment No. 2 Effective Date”), among Tesoro Corporation, a Delaware corporation (“Tesoro”), on behalf of itself and the other Tesoro Entities (as defined in the Third Omnibus Agreement, defined below), Tesoro Refining & Marketing Company LLC, a Delaware limited liability company (“TRMC”), Tesoro Companies, Inc., a Delaware corporation, Tesoro Alaska Company LLC, a Delaware limited liability (“Tesoro Alaska”), Tesoro Logistics LP, a Delaware limited partnership (the “Partnership”), and Tesoro Logistics GP, LLC, a Delaware limited liability company (the “General Partner”). The above-named entities are sometimes referred to in this Amendment No. 2 as “Party” and collectively as the “Parties”.
RECITALS
WHEREAS, the Parties executed that certain Third Amended and Restated Omnibus Agreement dated as of July 1, 2014 (the “Third Omnibus Agreement”);
WHEREAS, effective as of July 22, 2015 (the “Merger Date”), QEP Midstream Partners, LP, a Delaware limited partnership (“QEPM”), merged into a wholly owned subsidiary of the Partnership, and ceased to be a publicly traded entity (the “Merger”); 
WHEREAS, QEPM, QEP Midstream Partners GP, LLC, a Delaware limited liability company and the general partner of QEPM (“QEPM GP”), QEP Midstream Partners Operating, LLC, a Delaware limited liability company and wholly owned subsidiary of QEPM (the “Operating Company”), the Partnership, and the General Partner, had previously entered into that certain First Amended and Restated Omnibus Agreement, dated as of December 2, 2014 (the “QEPM Omnibus Agreement”), which governed the provision of certain services to QEPM and its subsidiaries; 
WHEREAS, the Partnership and General Partner entered into that certain QEPM Omnibus Side Agreement (the “Side Agreement”), dated as of February 11, 2015, pursuant to which the administrative fees paid to the General Partner pursuant to the QEPM Omnibus Agreement were clarified;
WHEREAS, in connection with the Merger and effective August 3, 2015, QEPM, QEPM GP, the Operating Company, the Partnership and the General Partner entered into that certain Termination Agreement which terminated the QEPM Omnibus Agreement and the related Side Agreement;  

WHEREAS, prior to termination of the QEPM Omnibus Agreement, QEPM was paying a fixed monthly amount as an administrative service fee to Tesoro through the General Partner; 
WHEREAS, approximately $300,000.00 per month of the fixed monthly administrative service fee QEPM was paying to Tesoro was due to additional fixed costs and expenses related to the administration of the additional assets of QEPM and its subsidiaries; 
WHEREAS, upon termination of the QEPM Omnibus Agreement, Tesoro will no longer be compensated for such fixed monthly costs QEPM was paying as an administrative service fee to Tesoro through the General Partner; 
WHEREAS, in connection with the Merger, the Parties wish to amend the Third Omnibus Agreement to increase the Partnership’s fixed monthly administrative fee by $300,000.00 to account for the loss of such amount that was previously payable under the QEPM omnibus to cover the administration of the assets of QEPM and its subsidiaries;  
NOW, THEREFORE, in consideration of the premises, and the covenants, conditions and agreements contained herein and in the Third Omnibus Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
1.    The Recitals are incorporated into the Third Omnibus Agreement and any capitalized terms not otherwise defined herein shall have the meanings set forth in the Third Omnibus Agreement.

2.    As of the Amendment No. 2 Effective Date, the monthly administrative fee is hereby increased to $775,000.000, and Schedule VIII, Administrative Fee and Indemnification Deductibles, is hereby amended and restated in its entirety, as attached hereto at as Attachment 1. 
3.    Other than as set forth above, the Third Omnibus Agreement, as amended, shall remain in full force and effect as written.

4.    This Amendment No. 2 shall be governed by and shall be construed in accordance with the laws of the State of Texas.

5.    This Amendment No. 2 may be executed in any number of counterparts with the same effect as if all signatory parties had signed the same document.  All counterparts shall be construed together and shall constitute one and the same instrument.  Delivery of an executed signature page of this Amendment No. 2 by facsimile transmission or in portable document format (.pdf) shall be effective as delivery of a manually executed counterpart hereof.

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6.    This Amendment No. 2 shall be binding upon and shall inure to the benefit of the parties hereto, their respective heirs, legal representatives, successors, and assigns.

7.    Should any clause, sentence, paragraph, subsection or section of this Amendment No. 2 be judicially declared to be invalid, unenforceable or void, such decision will not have the effect of invalidating or voiding the remainder of this Amendment No. 2, and the part or parts of this Amendment No. 2 so held to be invalid, unenforceable or void will be deemed to have been stricken herefrom, and the remainder will have the same force and effectiveness as if such stricken part or parts had never been included herein.

8.    This Amendment No. 2 sets forth all of the covenants, agreements, conditions, understandings, warranties and representations of the Parties relative to the subject matter hereof, and any previous agreement among such parties with respect to the subject matter hereof is superseded by this Amendment No. 2.

[Signature Page Follows]

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IN WITNESS WHEREOF, the Parties have executed and delivered this Amendment No. 2 effective as of the date first written above.

TESORO CORPORATION

By:          /s/ GREGORY J. GOFF        
Gregory J. Goff
Chairman, President and Chief Executive Officer

TESORO REFINING & MARKETING COMPANY LLC

By:          /s/ GREGORY J. GOFF        
Gregory J. Goff
Chairman of the Board of Managers and President

TESORO COMPANIES, INC.

By:          /s/ GREGORY J. GOFF        
Gregory J. Goff
Chairman of the Board of Directors and President

TESORO ALASKA COMPANY LLC

By:          /s/ GREGORY J. GOFF        
Gregory J. Goff
Chairman of the Board of Directors and President

TESORO LOGISTICS LP

		
	By:
	Tesoro Logistics GP, LLC, its

general partner

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

TESORO LOGISTICS GP, LLC

		
	By:  
	       /s/ PHILLIP M. ANDERSON        

Phillip M. Anderson    
President

Signature Page 2 to Amendment No. 2 to
Third Amended and Restated Omnibus Agreement

Attachment 1

Schedule VIII
Administrative Fee and Indemnification Deductibles

Monthly Administrative Fee 
$775,000.00
Annual Environmental Deductible 
$600,000    

Annual ROW Deductible 
$600,000    

Page 1 of 1 of 
Schedule VIII to Third Amended and Restated Omnibus AgreementTLLP EX.10.4 6.30.2015

Exhibit 10.4

TERMINATION AGREEMENT

This Termination Agreement (this “Agreement”), is entered into as of August 3, 2015 by and among QEP Midstream Partners, LP, a Delaware limited partnership (the “Partnership”), QEP Midstream Partners GP, LLC, a Delaware limited liability company and the general partner of the Partnership (the “General Partner”), QEP Midstream Partners Operating, LLC, a Delaware limited liability company and wholly owned subsidiary of the Partnership (the “Operating Company”), Tesoro Logistics LP, a Delaware limited partnership (“TLLP”), and Tesoro Logistics GP, LLC, a Delaware limited liability company and the general partner of TLLP (“TLGP”). The above-named entities are sometimes referred to in this Agreement individually as a “Party” and collectively as the “Parties.”

WHEREAS, the Parties entered into that certain First Amended and Restated Omnibus Agreement, dated as of December 2, 2014 (the “A&R Omnibus Agreement”), which governed the provision of certain services to QEPM and its subsidiaries;

WHEREAS, TLLP and TLGP entered into that certain QEPM Omnibus Side Agreement, dated  as of February 11, 2015  (the “Side Agreement”), pursuant to which the administrative fees paid to TLGP pursuant to the A&R Omnibus Agreement were clarified;

WHEREAS, effective as of July 22, 2015 (the “Merger Date”), the Partnership merged into a wholly owned subsidiary of TLLP, and the Partnership ceased to be a publicly traded entity; and

WHEREAS, in connection with such merger, the Parties desire to terminate the A&R Omnibus Agreement and the Side Agreement.

NOW, THEREFORE, in consideration of the premises and the respective representations, warranties, covenants, agreements and conditions contained herein, the Parties hereto agree as follows:

1.Effective as of the Merger Date, the A&R Omnibus Agreement and the Side Agreement are terminated and are of no further force or effect.

2.The Parties agree that any obligations that arose pursuant to the A&R  Omnibus Agreement or the Side Agreement prior to the Merger Date shall survive the termination of the A&R Omnibus Agreement and the Side Agreement.

3.This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns.

4.The provisions of this Agreement are intended to bind the Parties as to each other and are not intended to and do not create rights in any other person or confer upon any other person any benefits, rights or remedies, and no person is or is intended to be a third party beneficiary of any of the provisions of this Agreement.

		
	5.
	This Agreement shall be construed in accordance with and governed by the laws of the State  of  Texas,  without  regard  to  the  principles  of  conflicts  of  law.  Each  of  the  Parties  (a)

irrevocably agrees that any claims, suits, actions or proceedings arising out of or relating in any way to this Agreement shall be exclusively brought in any federal court of competent jurisdiction situated in the United States District Court for the Western District of Texas, San Antonio Division, or if such federal court declines to exercise or does not have jurisdiction, in the district court of Bexar County, Texas, in each case regardless of whether  such claims, suits, actions or proceedings sound in contract, tort,  fraud or  otherwise, are based on common law, statutory, equitable, legal or other grounds, or are derivative or direct claims, (b) irrevocably submits to the exclusive jurisdiction of the United States District Court for the Western District of Texas, San Antonio Division, or if such federal court declines to exercise or does not have jurisdiction, of the district court of  Bexar County, Texas in connection with any such claim, suit, action or proceeding, (c) agrees not to, and waives any right to, assert in any such claim, suit, action or proceeding that (i) it is not personally subject to the jurisdiction of the United States District Court for the Western District of Texas, San Antonio Division, or the district court of Bexar County, Texas, or of any other court to which proceedings in such courts may be appealed, (ii) such claim, suit, action or proceeding is brought in an inconvenient forum, or (iii) the venue of such claim, suit, action or proceeding is improper, (d) expressly waives any requirement for the posting of a bond by a party bringing such claim, suit, action or proceeding and (e) consents to process being served in any such claim, suit, action or proceeding by mailing,  certified  mail, return receipt requested, a copy thereof to such party at the address in effect for  notices hereunder or by personal service within or without the State of Texas, and agrees that service in such forms shall constitute good and sufficient service of process and notice thereof; provided, however, that nothing in clause (e) hereof shall affect or limit any right to serve process in any other manner permitted by law.

6.If any of the provisions of this Agreement are held by any court of competent jurisdiction to contravene, or to be invalid under, the laws of any political body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not invalidate the entire Agreement. Instead, this Agreement shall be construed as if it did not contain the particular provision or provisions held to be invalid and an equitable adjustment shall be made and necessary provision added so as to give effect to the intention of the Parties as expressed in this Agreement at the time of execution of this Agreement.

7.This Agreement constitutes the entire agreement among the Parties pertaining  to  the subject matter hereof and supersedes all prior agreements and understandings of the Parties in connection  therewith.

8.This Agreement may be executed in any number of counterparts with the same effect as if all signatory parties had signed the same document. All  counterparts  shall  be  construed together and shall constitute one and the same instrument. Delivery of an executed signature page of this Agreement by facsimile transmission or in portable document format (.pdf) shall be effective as delivery of a manually executed counterpart hereof.

[Signature Page Follows]

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed and delivered by their respective officers as of the day and year first above written.

    
TESORO LOGISTICS LP

By: Tesoro Logistics GP, LLC, its general partner

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

TESORO LOGISTICS GP, LLC

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

QEP MIDSTREAM PARTNERS GP, LLC

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

QEP MIDSTREAM PARTNERS, LP
By: QEP Midstream Partners GP, LLC, its general partner

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

QEP MIDSTREAM PARTNERS OPERTING, LLC

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

Signature Page 1 of 2 to Termination Agreement

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