Document:

TSO10K2014-EX.10.49

Exhibit 10.49

Execution Version

AMENDMENT NO. 1 TO THE  SECONDMENT AND LOGISTICS SERVICES AGREEMENT

THIS AMENDMENT NO. 1 TO THE SECONDMENT AND LOGISTICS SERVICES AGREEMENT (this "Amendment"), dated as of December 2, 2014, is made and entered into by and among Tesoro Companies, Inc., a Delaware corporation ("TCI"), Tesoro Refining & Marketing Company LLC, a Delaware limited liability company ("TRMC"), Tesoro Alaska Company LLC, a Delaware limited liability company ("TAC" and, together with TCI and TRMC, the "Tesoro Group"), Tesoro Logistics GP, LLC, a Delaware limited liability company (the "General Partner"), Tesoro Logistics Operations LLC, a Delaware limited liability company ("TLO"), Tesoro Logistics Pipelines LLC, a Delaware limited liability company ("TLP''), Tesoro High Plains Pipeline Company LLC, a Delaware limited liability company ("THPPC"), Tesoro Logistics Northwest Pipeline LLC, a Delaware limited liability company ("TLNP''), and Tesoro Alaska Pipeline Company LLC, a Delaware limited liability company ("TAPC" and together with the General Partner, TLO, TLP, THPPC and TLNP, the "Logistics Group"), QEP Field Services, LLC, a Delaware limited liability company ("QEPFS"), QEP Midstream Partners GP, LLC, a Delaware limited liability company ("QEPM GP"), QEP Midstream Partners Operating, LLC, a Delaware limited liability company ("QEPM OpCo"), QEPM Gathering I,LLC, a Delaware limited liability company ("QEPM Gathering"), Rendezvous Pipeline Company, LLC, a Colorado limited liability company ("Rendezvous") and Green River Processing, LLC, a Delaware limited liability company ("GRP" and together with QEPFS, QEPM GP, QEPM OpCo, QEPM Gathering and Rendezvous, the "QEP Group"). Each signatory hereto is referred to herein as a "Party" and collectively as the "Parties.".

RECITALS:

WHEREAS, on July  I, 2014, certain of the Parties entered into that certain Secondment and Logistics Services Agreement (the "Secondment Agreement") pursuant to which the Tesoro Group agreed to provide to the Logistics Group certain services necessary to operate, manage, maintain and report the operating results of the Logistics Group's assets, including gathering pipelines, transportation pipelines, storage tanks, trucks, truck racks, terminal facilities, offices and related equipment, real estate and other assets or portions thereof of the Logistics Group;

WHEREAS, as of the date hereof; pursuant to that certain Membership Interest Purchase Agreement, dated October 19, 2014 (the "MIPA"), between QEP Field Services Company, LLC, a Delaware corporation, and Tesoro Logistics LP, a Delaware limited partnership ("TLLP''), TLLP acquired the membership interests of QEPFS, which entity directly or indirectly holds the equity interests of the QEP Group (other than itself);

WHEREAS, the Parties desire to amend the Secondment Agreement to add the entities acquired pursuant to the MIPA as parties to the Secondment Agreement.

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

1. AMENDMENTS

Each member of the QEP Group is made a party for all purposes to the Secondment Agreement, and shall hereafter be a "Party" and a member of the "Logistics Group" (each as defined in the Secondment Agreement).

2. MISCELLANEOUS

(a) Other than as set forth above, the Secondment Agreement shall remain in full force and effect as written.

(b) Except as otherwise provided herein, all costs and expenses (including legal and financial advisory fees and expenses) incurred in connection with, or in anticipation of, this Amendment and the transactions contemplated hereby shall be paid by the Party incurring such expenses.

(c) This Amendment and the legal relations between the Parties shall be governed by and construed in accordance with Section 13(d) of the Secondment Agreement.

(d) This Amendment constitutes the entire agreement between the Parties pertaining to the subject matter hereof, and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the Parties pertaining to the subject matter hereof.

(e) This Amendment may be executed in counterparts, each of which shall be deemed an original instrument, but all such counterparts together shall constitute but one agreement. Either Party's delivery of an executed counterpart signature page by facsimile (or electronic .pdf format transmission) is as effective as executing and delivering this Amendment in the presence of the other Party. No Party shall be bound until such time as all of the Parties have executed counterparts of this Amendment.

(f) This Amendment is solely for the benefit of the Parties and should not be deemed to confer upon third parties any remedy, claim, liability,reimbursement, cause of action or other right in excess of those existing without reference to this Amendment.

(g) The invalidity or unenforceability of any term or provision of this Amendment in any situation or jurisdiction shall not affect the validity or enforceability of the other terms or provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction and the remaining terms and provisions shall remain in full force and effect, unless doing so would result in an interpretation of this Amendment that is manifestly unjust.

[Signatures of the Parties follow on the next page.]

2

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement as of the date first written above.

	
							
	TESORO LOGISTICS GP, LLC
	 
	TESORO LOGISTICS OPERATIONS LLC

	 
	 
	 
	 
	 
	 
	 

	By:
	 
	/s/ Phillip M. Anderson
	 
	By:
	 
	/s/ Phillip M. Anderson

	Name:
	 
	Phillip M. Anderson
	 
	Name:
	 
	Phillip M. Anderson

	Title:
	 
	President
	 
	Title:
	 
	President

	 
	 
	 
	 
	 
	 
	 

	TESORO HIGH PLAINS PIPELINE COMPANY LLC
	 
	TESORO LOGISTICS PIPELINES LLC

	 
	 
	 
	 
	 
	 
	 

	By:
	 
	/s/ Phillip M. Anderson
	 
	By:
	 
	/s/ Phillip M. Anderson

	Name:
	 
	Phillip M. Anderson
	 
	Name:
	 
	Phillip M. Anderson

	Title:
	 
	President
	 
	Title:
	 
	President

	 
	 
	 
	 
	 
	 
	 

	TESORO ALASKA PIPELINE COMPANY LLC
	 
	TESORO LOGISTICS NORTHWEST PIPELINE LLC

	 
	 
	 
	 
	 
	 
	 

	By:
	 
	/s/ Phillip M. Anderson
	 
	By:
	 
	/s/ Phillip M. Anderson

	Name:
	 
	Phillip M. Anderson
	 
	Name:
	 
	Phillip M. Anderson

	Title:
	 
	President
	 
	Title:
	 
	President

	 
	 
	 
	 
	 
	 
	 

	QEP FIELD SERVICES, LLC
	 
	QEP MIDSTREAM PARTNERS GP, LLC

	 
	 
	 
	 
	 
	 
	 

	By:
	 
	/s/ Phillip M. Anderson
	 
	By:
	 
	/s/ Phillip M. Anderson

	Name:
	 
	Phillip M. Anderson
	 
	Name:
	 
	Phillip M. Anderson

	Title:
	 
	President
	 
	Title:
	 
	President

	 
	 
	 
	 
	 
	 
	 

	QEP MIDSTREAM PARTNERS OPERATING, LLC
	 
	QEPM GATHERING I, LLC

	 
	 
	 
	 
	 
	 
	 

	By:
	 
	/s/ Phillip M. Anderson
	 
	By:
	 
	/s/ Phillip M. Anderson

	Name:
	 
	Phillip M. Anderson
	 
	Name:
	 
	Phillip M. Anderson

	Title:
	 
	President
	 
	Title:
	 
	President

Signature Page to Amendment No. 1 to Secondment Agreement

3

	
							
	GREEN RIVER PROCESSING, LLC
	 
	RENDEZVOUS PIPELINE COMPANY, LLC

	 
	 
	 
	 
	 
	 
	 

	By:
	 
	/s/ Phillip M. Anderson
	 
	By:
	 
	/s/ Phillip M. Anderson

	Name:
	 
	Phillip M. Anderson
	 
	Name:
	 
	Phillip M. Anderson

	Title:
	 
	President
	 
	Title:
	 
	President

Signature Page to Amendment No. 1 to Secondment Agreement

4

	
							
	TESORO REFINING & MARKETING COMPANY LLC
	 
	TESORO COMPANIES, INC.

	 
	 
	 
	 
	 
	 
	 

	By:
	 
	/s/ Keith M. Casey
	 
	By:
	 
	/s/ Keith M. Casey

	Name:
	 
	Keith M. Casey
	 
	Name:
	 
	Keith M. Casey

	Title:
	 
	Executive Vice President, Operations
	 
	Title:
	 
	Executive Vice President, Operations

	 
	 
	 
	 
	 
	 
	 

	TESORO ALASKA COMPANY LLC
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 

	By:
	 
	/s/ Keith M. Casey
	 
	 
	 
	 

	Name:
	 
	Keith M. Casey
	 
	 
	 
	 

	Title:
	 
	Executive Vice President, Operations
	 
	 
	 
	 

Signature Page to Amendment No. 1 to Secondment Agreement

5TSO10K2014-EX.10.59

Exhibit 10.59

2015 Incentive Compensation Program

On February 10, 2015, the Compensation Committee approved the terms of the 2015 Incentive Compensation Program (the “2015 ICP” or the “2015 Program”). In addition, the Compensation Committee approved the target payouts for our Chief Executive Officer and other named executive officers. The 2015 Program consists of two components: Corporate and Business Unit performance, which are outlined below. The performance results of Tesoro Corporation (the “Company”) and the individual business units may be adjusted to take into account unbudgeted business decisions, unusual or non-recurring items, and other factors, as approved by the Compensation Committee, to determine the total amount, if any, available under the 2015 ICP. The Compensation Committee also has discretion to adjust individual awards based on their assessment of an individual executive's performance relative to successful achievement of goals, business plan execution, and other leadership attributes.

Component 1 - Corporate Performance - measured against target with the range of outcomes between 0% and 200%. Corporate performance metrics include the following:

		
	•
	Achievement of earnings before interest, taxes, depreciation and amortization (“EBITDA”) measured on a margin neutral basis (this is the most heavily weighted metric, constituting 50% of the bonus opportunity for the corporate performance component)

		
	•
	Safety - Targeted improvement in recordable incidents (this metric constitutes 5% of the bonus opportunity for the corporate performance component)

		
	•
	Process Safety Management - Targeted improvement in the number of process safety incidents (this metric constitutes 5% of the bonus opportunity for the corporate performance component)

		
	•
	Environmental - Targeted improvement in the number of environmental incidents (this metric constitutes 5% of the bonus opportunity for the corporate performance component)

		
	•
	Cost Management - Measurement of non-capital cash expenditure versus budget (this metric constitutes 17.5% of the bonus opportunity for the corporate performance component)

		
	•
	Business Improvement - Targeted improvements from capital improvement initiatives, synergies related to asset acquisitions and other projects and initiatives (this metric constitutes 17.5% of the bonus opportunity for the corporate performance component)

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

		
	•
	Safety and Environmental

		
	•
	Cost Management

		
	•
	Improvements in EBITDA

		
	•
	Business improvement and value creation initiatives

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