Document:

Letter Agreement

 Exhibit 10.14 
 

 
 October 14, 2011 
 HollyFrontier Corporation 
 2828 N. Harwood, Suite 1300 

Dallas, Texas 75201 
  

	Re:	Clarification of certain matters regarding the Amended and Restated Crude Pipelines and Tankage Agreement (the “Crude Agreement”) dated
December 1, 2009 to be effective January 1, 2009, by and among Navajo Refining Company, L.L.C., a Delaware limited liability company (“Navajo Refining”), Holly Refining & Marketing Company – Woods Cross LLC,
a Delaware limited liability company (“HollyFrontier Refining – Woods Cross”), and HollyFrontier Refining & Marketing Company LLC, a Delaware limited liability company (“HollyFrontier Refining”,
together with Navajo Refining and HollyFrontier-Refining – Woods Cross, the “HollyFrontier Entities”), Holly Energy Partners-Operating, L.P., a Delaware limited partnership (the “Operating Partnership”), HEP
Pipeline, LLC, a Delaware limited liability company (“HEP Pipeline”) and HEP Woods Cross, L.L.C., a Delaware limited liability company (“HEP Woods Cross”, together with the Operating Partnership and HEP Pipeline,
the “Partnership Entities”) 

 Ladies and Gentlemen, 

The purpose of this letter agreement (this “Letter Agreement”) is (i) to clarify the method by which certain
payments due from the HollyFrontier Entities to the Partnership Entities under the Crude Agreement are calculated, and (ii) to agree to the amount of a payment from the HollyFrontier Entities to the Partnership Entities such that, following
such payment, the HollyFrontier Entities will have paid to the Partnership Entities under the Crude Agreement a total amount equal to what the HollyFrontier Entities would have paid to the Partnership Entities under the Crude Agreement through
June 30, 2011 if the amounts paid under such agreement would have been calculated on the basis of the clarifications set forth herein from the date the parties originally entered into such agreement (the “Adjustment Payment”).
For the Contract Quarter beginning July 1, 2011, and for all future Contract Quarters, the amounts due under the Crude Agreement will be calculated in accordance with the clarifications set forth herein. Capitalized terms used in this Letter
Agreement that are not otherwise defined herein shall have the meaning given to them in the Crude Agreement. Now, therefore, the HollyFrontier Entities and the Partnership Entities agree as follows: 

1. Crude Oil Trunk Pipelines Volume Measurement. The HollyFrontier Entities will not be charged the tariff rates applicable
to services on the Crude Oil Trunk Pipelines for volumes of Crude Oil moved over the 4 inch, 1.2 mile Abo Station to BP Sweet System pipeline (since such volumes of Crude Oil are not ultimately shipped to a HollyFrontier refinery), though such
volumes of Crude Oil so shipped may be charged the tariff rates applicable to services on the Crude Oil Gathering Pipelines, as further specified below. 

 2. Crude Oil Gathering Pipelines Volume Measurements. The HollyFrontier Entities will
be charged the tariff applicable to service on the Crude Oil Gathering Pipelines for all volumes (whether shipped by pipeline or truck) of Crude Oil delivered to the following Crude Oil gathering stations: 

 

			
	 •    Abo
	  	 •    Monument Sweet

	 •    Artesia
	  	 •    North Monument

	 •    Barnsdall
	  	 •    South Monument

	 •    Baumgart
	  	 •    Riley

	 •    Beeson
	  	 •    Russell

	 •    Burton Flats
	  	 •    Seminole

	 •    Lovington Station 126 - Chevron LACTs
	  	 •    Wood

	 •    Maljamar Park
	  	

 Additionally, the measurement points for measuring such volumes shall be as follows (with the stations included or
excluded at such measurement points set forth in the parenthetical next to such measurement point): 
  

	
	 •    Abo

	 •    Artesia (includes Burton Flats)

	 •    Barnsdall

	 •    Beeson (includes Maljamar Park)

	 •    Monument Sour (includes North Monument and South Monument)

	 •    Monument Sweet

	 •    Riley (includes Baumgart)

	 •    Russell (excludes Riley and Baumgart volumes already counted at Riley)

	 •    Wood (includes Seminole)

	 •    Lovington Station 126 – Chevron LACTs

 The Parties may, by mutual written agreement, amend the lists above to add or remove stations, or to change measurement
points. 
 3. Calculation of Quarterly Minimum Revenue Commitments. The amount of the Minimum Trunk Pipeline Revenue
Commitment, Minimum Gathering Pipeline Revenue Commitment, Minimum Woods Cross Pipeline Revenue Commitment and Minimum Roswell Pipeline Revenue Commitment applicable to each Contract Quarter under the Crude Agreement shall be calculated by
multiplying the annual revenue commitment for each such amount set forth in Schedule I to the Crude Agreement by a 

  
 2 

 
fraction, the numerator of which shall be actual number of days in such Contract Quarter and the denominator of which shall be the total number of days in the Contract Year in which such Contract
Quarter is included. For example, for the Contract Quarter beginning on July 1, 2008 and ending on September 30, 2008, the Minimum Trunk Pipeline Revenue Commitment would be calculated as follows: 

Minimum Trunk Pipeline Revenue Commitment per Year = $14,076,293 

Days in applicable Contract Quarter = 92 
 Days in applicable Contract Year = 365 
  

	
	Quarterly Trunk Pipeline Revenue Commitment = $14,076,293 x (92/365)
	
	                              
                                         
             = $3,547,997

 4. Adjustment Payment. The amount of the Adjustment Payment is $5,505,590. The HollyFrontier
Entities agree to pay the Adjustment Payment to the Partnership Entities is six equal installments, the first of which shall be paid on October 31, 2011, and the remaining five of which shall be paid by the last day of the first month of each
of the next five Contract Quarters (January 31, 2012; April 30, 2012; July 31, 2012; October 31, 2012; and January 31, 2013). 
 5. Other Matters. 
 (a) Addendum and Supplement. The
parties agree that this Letter Agreement shall constitute an addition and supplement to the Crude Agreement regarding the matters set forth herein. The terms of this Letter Agreement are incorporated into the Crude Agreement. 

(b) Counterparts. This Letter Agreement may be executed in two or more counterparts, each of which, when delivered
(which deliveries may take place by facsimile or electronic mail) shall be deemed an original, but all of which shall constitute one and the same instrument. 
 (c) Effective Time. This letter shall be effective as of September 30, 2011. 
 [Signatures appear on the following page.] 

  
 3 

 IN WITNESS WHEREOF, this Letter Agreement has been executed as of the date first written
above by the undersigned to be effective as of September 30, 2011: 
  

					
		 	PARTNERSHIP ENTITIES:
		
		 	HOLLY ENERGY PARTNERS — OPERATING, L.P.
			
		 	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

  

					
		 	HEP WOODS CROSS, L.L.C.
			
		 	By:	 	 HOLLY ENERGY PARTNERS —

		 	 OPERATING, L.P.,

its Sole Member

			
		 	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

  

					
		 	HEP PIPELINE, L.L.C.
			
		 	By:	 	 HOLLY ENERGY PARTNERS —

		 	 OPERATING, L.P., its Sole Member

			
		 	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

  

					
		 	HOLLYFRONTIER ENTITIES:
		
		 	NAVAJO REFINING COMPANY, L.L.C.
			
		 	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

 SIGNATURE PAGE TO LETTER
AGREEMENT 

					
		 	 HOLLY REFINING & MARKETING
 COMPANY — WOODS CROSS LLC

			
		 	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

					
		
		 	HOLLYFRONTIER REFINING & MARKETING COMPANY LLC
			
		 	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

  

			
	ACKNOWLEDGED AND AGREED:
	
	HOLLYFRONTIER CORPORATION
		
	By:	 	 
	Name:	 	 
	Title:	 	 

 SIGNATURE PAGE TO LETTER
AGREEMENTForm of Frontier Oil Corporation Omnibus Incentive Compensation Plan

 Exhibit 10.15 
 Frontier Oil Corporation 
 Omnibus Incentive Compensation Plan

 2011 Stock Unit Agreement 
 Grantee:            
                                         
                                         
   
 Date of Grant:  
                                         
                                         
   
 Total Number of Stock Units Granted:  
                                         
                                         
   
 1. Stock Unit Grants. I am pleased to inform you that Frontier Oil Corporation (hereinafter referred to
together with any successor to all or substantially all of the business thereof as the “Company”) has granted you Stock Units with respect to shares of common stock of the Company (“Company Stock”) under the Frontier Oil
Corporation Omnibus Incentive Compensation Plan (the “Plan”). A Stock Unit reflects a notional (phantom) share of Company stock, but is not itself a share of stock. This Agreement includes Attachment A hereto. Capitalized terms not
separately defined herein shall have the meaning set forth in the Plan or on Attachment A, as applicable. The terms of this grant are subject to the terms of the Plan and this Agreement. 

2. Performance Goal/Issuance of Company Stock. If and to the extent the applicable Performance Goal is achieved and certified by
the Committee (as set forth on Attachment A) you will receive in cancellation of and in exchange for your Stock Units a number of fully vested shares of Company Stock (“Vested Shares”) equal to the product of (i) the Earned Percentage
set forth on Attachment A, and (ii) the number of your Stock Units (the “Earned Shares”), all subject to adjustment as described in Section 5 below. The Earned Shares shall be issued no later than 90 days following the end of the
Performance Period. If the Threshold is not achieved for the Performance Period all Stock Units will automatically be cancelled without payment at the end of the Performance Period. 

3. Effect of Termination of Employment. 
 (a) During the Performance Period. Subject to Section 10 below, if your Employment, as defined below, terminates during the Performance Period for any reason other than due to “Retirement,”
as defined below, all Stock Units awarded to you automatically shall be forfeited without payment upon such termination. “Employment” means employment, service as a Director or service as a substantially full-time consultant with either
the Company or an Affiliate of the Company. “Retirement” means your termination of Employment for reasons other than Cause after your 55th birthday and with the consent of the Committee. If your Employment terminates during the Performance
Period on account of Retirement your Stock Units will continue until the end of the Performance Period and you will be eligible to receive in exchange for those Stock Units, and at the time provided in Section 2, a number of Vested Shares of
Company Stock equal to the product of (i) the Earned Shares as otherwise determined in Section 2, and (ii) a fraction the numerator of which shall be the number of days in the Performance Period that have elapsed as of the date of
your Retirement and the denominator of which is the total number of days in the Performance Period. 

 (b) Termination After the Performance Period. Subject to Section 10 below, if
your Employment terminates after the Performance Period but before the issuance of Earned Shares for any reason other than your death, Retirement, or a disability that entitles you to disability benefits under the Company’s long-term disability
plan (“Disability”) all Stock Units awarded to you automatically shall be forfeited without payment upon such termination. If your employment with the Company terminates during such period as a result of your death, Retirement or
Disability, you or your estate shall be entitled to Earned Shares on the same basis as if your Employment had continued through the date the Earned Shares are issued. 
 4. Dividends and Dividend Equivalents. If you receive a grant of Vested Shares in exchange for Stock Units pursuant to Section 2, then within the time therein provided for the issuance of
Earned Shares the Company shall pay you with respect to each Earned Share (i) an amount of cash equal to the value of all cash dividends the Company has paid with respect to a share of Company Stock during the period beginning on the Date of
Grant and ending on the date the Vested Shares are issued to you (the “Cash Equivalent”) and (ii) a number of Vested Shares equal to the number of shares issued pursuant to stock dividends paid during such period with respect to a
share of Company Stock (the “Stock Equivalent”), all subject to adjustment as provided in Section 5 below. Any Cash Equivalent and Dividend Equivalent (collectively “Dividend Equivalents”) shall be payable only with respect
to any Stock Unit that is exchanged for Earned Shares. 
 5. Nontransferability of Award. The Stock Units may not be
transferred in any manner otherwise than by will or by the laws of descent or distribution or a qualified domestic relations order. The terms of the Plan and this Agreement shall be binding upon your executors, administrators, heirs, successors and
assigns. 
 6. Adjustments. 
 (a) Adjustment to Earned Shares. If a “Closing,” as defined in the Agreement and Plan of Merger By and Among Holly Corporation, North Acquisition, Inc. and Frontier Oil Corporation Dated
as of February 21, 2011 (the “Merger Agreement”) occurs prior to the-issuance of the Earned Shares (i) any Stock Unit held hereunder shall cease to be exchangeable for a vested share of Company Stock and shall instead be
exchangeable for a share of Holly Common Stock, as defined in the Merger Agreement, (ii) the number of your Stock Units shall be increased by the Exchange Ratio, also as defined in the Merger Agreement, and (iii) the number of Earned
Shares of Holly Common Stock to which you may become entitled under Section 2, above, shall equal such increased number of Stock Units multiplied by the Earned Percentage. 

(b) Dividend Equivalents and Earned Percentage. If an adjustment is made to the number of Earned Shares under Section 5(a)
above (i) the amount of cash dividends and stock dividends taken into account in calculating Dividend Equivalents shall be determined for periods following the Closing by reference to dividends on the Holly Common Stock, as determined above,
and (ii) stock dividends issued prior to the Closing shall be deemed adjusted by the Exchange Ratio in determining the Stock Equivalent distributed under Section 3. 

 7. Change of Control. Pursuant to the specific determination of the Committee, and
contrary to any provision of the Plan that might otherwise apply in the absence of such determination, a Change in Control will not, of itself, result in: 
 (a) acceleration of vesting of any rights hereunder, 
 (b) lapse of any
restrictions otherwise applicable to Stock Units or Vested Shares, or 
 (c) deemed satisfaction of performance targets, (in
either case a “Single Trigger”). Unless otherwise specifically determined in writing by the Compensation Committee your award hereunder shall not terminate on a Change of Control, but shall be assumed by the successor (or a parent thereof)
in any such transaction. 
 8. Entire Agreement; Governing Law. The Plan is incorporated herein by reference. The Plan,
this Agreement and any other agreement specifically referenced herein constitute the entire agreement of the parties with respect to the subject matter hereof and, except as expressly provided in this Agreement, supersede in their entirety all prior
undertakings and agreements between you and the Company with respect to the same. This Agreement is governed by the internal substantive laws, but not the choice of law rules, of the State of Texas. 

9. Withholding of Tax. To the extent that the vesting or payment of Stock Units or Vested Shares, or payment of Dividend
Equivalents results in the receipt of compensation by you with respect to which the Company or an Affiliate has a tax withholding obligation pursuant to applicable law, unless other arrangements have been made by you that are acceptable to the
Company or such Affiliate, you shall deliver to the Company or an Affiliate such amount of money as the Company or an Affiliate may require to meet its withholding obligations under such applicable law; provided, however, you may direct the Company
to withhold such number of Shares that would otherwise be delivered to you hereunder that have an aggregate fair market value that does not exceed the amount of taxes required to be withheld by the Company or an Affiliate. No delivery of Earned
Shares or Stock Equivalent shall be made pursuant to this Agreement until you have paid or made arrangements approved by the Company or an Affiliate to satisfy in full the applicable tax withholding requirements of the Company or an Affiliate.

 10. Amendment. This Agreement may be modified only by a written agreement signed by you and an officer of the Company
who is expressly authorized by the Company to execute such document; provided, however, notwithstanding the foregoing, the Company may make any change to this agreement without your consent if such change is not materially adverse to your rights
under this Agreement. 
 11. Other Agreements. The terms of any Change of Control and/or Severance Agreement (a
“Protective Agreement”) between you and the Company in effect on the Date of Grant are incorporated herein by reference and to the extent any Protective Agreement continues to be in effect on any relevant date hereunder, it shall control
over any provisions in this Agreement (but not provisions in the Plan) in conflict with the terms of such Protective Agreement, provided that no Protective Agreement shall control this Agreement so as to provide for either: 

 (a) a Single Trigger hereunder, or 

(b) acceleration of vesting hereunder upon a voluntary termination of employment, if such right to acceleration would otherwise arise
solely from your resignation as a result of either (i) a requirement that you be based in Dallas, Texas or (ii) a requirement that you be absent from your regular office on travel status or otherwise more than a total of 60 but less than
90 business days in any calendar year or more than 20 but less than 30 consecutive days, and by executing this grant agreement you waive any such right as applied to Stock Units, Earned Shares or Dividend Equivalents hereunder. 

 

			
	FRONTIER OIL CORPORATION
		
	By:	 	 
	Name	 	 
	Title:	 	 
	
	EMPLOYEE:
		
	 	 	 

 ATTACHMENT A 
 To The Frontier Oil Corporation 
 Omnibus Incentive Compensation Plan

 2011 Stock Unit/Restricted Stock Agreement 
 I. Performance Goals 
 Capitalized terms not separately defined herein shall have the meanings set
forth in the Agreement to which this is attached. The Performance Period shall be the calendar years 2011, 2012 and 2013. The “Earned Percentage” for all Units shall be determined pursuant to the following table: 

3-Year Total Shareholder Return, as defined below (“TSR”) vs. Peers 

 

					
	 TSR vs. Peers
	  	 Award Level
	  	 Stock Units Earned as of %

of Target

	 <0.80
	  	<Threshold	  	-0-
	 0.80
	  	Threshold	  	75%
	 1.05
	  	Target	  	100%
	 1.30
	  	Maximum	  	125%

  

	(1)	TSR vs. Peers is calculated by dividing the sum of one plus the Company’s TSR for the Performance Period by the sum of one plus the average TSR for the same period
for the following companies: Valero Corporation, Tesoro Corporation, Western Refining, CVR Energy Corporation, and Alon USA Energy. TSR equals the percentage change in share price plus the total yield attributable to cash and stock dividends for the
Performance Period, determined as follows: The beginning stock price will be calculated as the average closing prices of a given stock for the first twenty trading days of January 2011. The ending stock price will be calculated using the average
closing prices of a given stock for the final twenty trading days in December 2013. Total yield shall be determined from January 1, 2011 through December 31, 2013. The calculation of TSR shall take account of any adjustment resulting from
the Closing, as provided in Section 5 of the Agreement, including the application of the Exchange Ratio to the Conversion of any shares of Company Stock, including shares issued as dividends prior to the Closing, such that TSR shall reflect the
actual total shareholder return of a shareholder owning shares of Company Stock on January 1, 2011, receiving shares of Holly Stock at the Exchange Ratio on the Closing and holding such Holly Common Stock, or any shares or other derived
therefrom, through December 31, 2013. 

  

	(2)	If TSR vs. Peers falls between two Award Levels, the percentage of Stock Units earned will be interpolated on a straight-line basis between the two closest points in
the table above. 

 II. Adjustments to Performance Goals for Certain Events 

 

	    	If a peer company ceases to be publicly traded during the three-year Performance Period, such company shall be excluded from the calculation or, at the election of the
Committee, replaced with a substitute peer company selected in the sole discretion of the Committee. 

  

	    	Notwithstanding the foregoing, however, an adjustment pursuant to this Section II may be made only to the extent the adjustment does not cause the award to cease to
qualify as a “performance-based” award under IRC Section 162(m) and applicable Treasury regulations thereafter. 

III. Committee Certification 
  

	    	As soon as reasonably practical following the end of the Performance Period, the Committee shall review the Performance Goals for the Performance Period and certify
those results in writing. No cash payments or Vested Shares shall be paid or issuable to you prior to the Committee’s certification.

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