Document:

Form of SemGroup Energy Partners G.P., L.L.C. Long-Term Incentive Plan

 Exhibit 10.5 
 SEMGROUP ENERGY PARTNERS G.P., L.L.C. 
 LONG-TERM INCENTIVE PLAN 
  

	1.	Purpose of the Plan. 

 The SemGroup Energy Partners,
G.P., L.L.C. Long-Term Incentive Plan (the “Plan”) has been adopted by SemGroup Energy Partners G.P., L.L.C., a Delaware limited liability company (the “Company”), the general partner of SemGroup Energy Partners,
L.P., a Delaware limited partnership (the “Partnership”), and is intended to promote the interests of the Partnership and the Company and their Affiliates (as defined below) by providing to employees, consultants, and directors of
the Company and its Affiliates who perform services for or on behalf of the Partnership and its subsidiaries incentive compensation awards for superior performance that are based on Units (as defined below). The Plan is also contemplated to enhance
the ability of the Company and its Affiliates to attract and retain the services of individuals who are essential for the growth and profitability of the Partnership and its subsidiaries and to encourage them to devote their best efforts to
advancing the business of the Partnership and its subsidiaries. 
  

	2.	Definitions. 

 As used in the Plan, the following
terms shall have the meanings set forth below: 
 “Affiliate” means, with respect to any Person, any other
Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, 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. 
 “Award” means Unit, Restricted Unit, Phantom Unit, Option, Unit Appreciation Right or DER granted under the Plan.

 “Award Agreement” means the written agreement or other instrument by which an Award shall be evidenced.

 “Board” means the Board of Directors of the Company. 
 “Change of Control” means, and shall be deemed to have occurred upon the occurrence of one or more of the following
events: (i) any “person” or “group” within the meaning of those terms as used in Sections 13(d) and 14(d)(2) of the Exchange Act, other than SemGroup, L.P., an Oklahoma limited partnership, and its Affiliates, shall become
the beneficial owner, by way of merger, consolidation, recapitalization, reorganization or otherwise, of 50% or more of the combined voting power of the equity interests in the Company or the Partnership; (ii) the limited partners of the
Partnership approve, in one or a series of transactions, a plan of complete liquidation of the 

 
Partnership; (iii) the sale or other disposition by either the Company or the Partnership of all or substantially all of its assets in one or more
transactions to any Person other than the Company or an Affiliate of the Company; or (iv) a transaction resulting in a Person other than the Company or an Affiliate of the Company being the general partner of the Partnership. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Committee” means the Compensation Committee of the Board or, if none, the Board or such committee of the Board, if any,
as may be appointed by the Board to administer the Plan. 
 “Consultant” means an individual, other than an
Employee or a Director, providing bona fide services to the Partnership or any of its subsidiaries as a consultant or advisor, as applicable, provided that such individual is a natural person. 
 “DER” or “Distribution Equivalent Right” means a right to receive an amount in cash equal to the cash
distributions made by the Partnership with respect to a Unit during a specified period. 
 “Director” means a
member of the Board who is not an Employee. 
 “Employee” means any employee of the Company or an Affiliate
who performs services for the Partnership or its Affiliates. 
 “Exchange Act” means the Securities Exchange
Act of 1934, as amended. 
 “Fair Market Value” of a Unit means the closing sales price of a Unit on the
principal national securities exchange or other market in which trading in Units occurs on the applicable date (or if there is no trading in the Units on such date, on the next preceding date on which there was trading) as reported in The Wall
Street Journal (or other reporting service approved by the Committee). In the event Units are not traded on a national securities exchange or other market at the time a determination of fair market value is required to be made hereunder, the
determination of fair market value shall be made in good faith by the Committee. Notwithstanding the foregoing, with respect to an Award granted on the effective date of the initial public offering of Units, Fair Market Value on such date shall mean
the initial offering price per Unit as stated on the cover page of the S-1 for such offering. 
 “Option”
means an option to purchase Units granted under the Plan. 
 “Participant” means any Employee, Consultant or
Director granted an Award under the Plan. 
 “Person” means an individual or a corporation, limited liability
company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity. 
  

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 “Phantom Unit” means a phantom (notional) Unit granted under the Plan
which entitles the Participant to receive, in the discretion of the Committee, a Unit or an amount of cash equal to the Fair Market Value of a Unit. 
 “Restricted Period” means the period established by the Committee with respect to an Award during which the Award remains nontransferable and subject to forfeiture or is either not exercisable by or
payable to the Participant, as the case may be. 
 “Restricted Unit” means a Unit granted under the Plan that
is subject to a Restricted Period. 
 “SEC” means the Securities and Exchange Commission, or any successor
thereto. 
 “UAR” of “Unit Appreciation Right” means an Award that, upon exercise, entitles
the holder to receive, in cash or common stock in the discretion of the Committee, the excess of the Fair Market Value of a Unit on the exercise date over the exercise price established for such Unit Appreciation Right. 
 “Unit” means a common unit of the Partnership. 
  

	3.	Administration. 

 (a) General. The Plan shall
be administered by the Committee. Subject to the terms of the Plan and applicable law, and in addition to other express powers and authorizations conferred on the Committee by the Plan, the Committee shall have full power and authority to:
(i) designate Participants; (ii) determine the type or types of Awards to be granted to a Participant; (iii) determine the number of Units to be covered by Awards; (iv) determine the terms and conditions of any Award (including
but not limited to performance requirements for such Award); (v) determine whether, to what extent, and under what circumstances Awards may be settled, exercised, canceled, or forfeited; (vi) interpret and administer the Plan and any
instrument or agreement relating to an Award made under the Plan; (vii) establish, amend, suspend, or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and
(viii) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan. The Committee may, in its discretion, provide for the extension of the exercisability of an Award,
accelerate the vesting or exercisability of an Award, eliminate or make less restrictive any restrictions applicable to an Award, waive any restriction or other provision of this Plan or an Award or otherwise amend or modify an Award in any manner
that is either (i) not adverse to the Participant to whom such Award was granted or (ii) consented to by such Participant. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other
decisions under or with respect to the Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive, and binding upon all Persons, including the Company, the Partnership, any
Affiliate, any Participant, and any beneficiary of any Award. No member of the Committee or officer of the Company to whom the Committee has delegated authority in accordance with the provisions of Section 3(b) of this Plan shall be liable for
anything done or omitted to be done by him or her, by any member of the 

  

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Committee or by any officer of the Company in connection with the performance of any duties under this Plan, except for his or her own willful misconduct or
as expressly provided by statute. 
 (b) Delegation. Following the authorization of a pool of Units to be available for Awards, the
Board or the Committee may authorize a committee of one or more members of the Board to grant individual Awards from such pool pursuant to such conditions or limitations as the Board or the Committee may establish. The Committee may delegate to the
Chief Executive Officer and to other employees of the Company its administrative duties under this Plan (excluding its granting authority) pursuant to such conditions or limitations as the Committee may establish. The Committee may engage or
authorize the engagement of a third party administrator to carry out administrative functions under the Plan. 
  

	4.	Units. 

 (a) Limits on Units Deliverable.
Subject to adjustment as provided in Section 4(c), the maximum number of Units that may be delivered or reserved for delivery or underlying Awards in the aggregate issued under the Plan is 1,250,000. If any Award expires, is canceled,
exercised, paid or otherwise terminates without the delivery of Units, then the Units covered by such Award, to the extent of such expiration, cancellation, exercise, payment or termination, shall again be Units with respect to which Awards may be
granted. Units that are delivered by a Participant in satisfaction of the exercise or other purchase price of an Award or the tax withholding obligations associated with an Award or are withheld to satisfy the Company’s tax withholding
obligations are available for delivery pursuant to other Awards. The Committee may from time to time adopt and observe such rules and procedures concerning the counting of Units against the Plan maximum or any sublimit as it may deem appropriate,
including rules more restrictive than those set forth above to the extent necessary to satisfy the requirements of any national stock exchange on which the Units are listed or any applicable regulatory requirement. The Board and the appropriate
officers of the Company are authorized to take from time to time whatever actions are necessary, and to file any required documents with governmental authorities, stock exchanges and transaction reporting systems to ensure that Units are available
for issuance pursuant to Awards. 
 (b) Sources of Units Deliverable Under Awards. Any Units delivered pursuant to an Award shall
consist, in whole or in part, of Units acquired in the open market, common units already owned by the Company, common units acquired by the Company directly from the Partnership or any other person or any combination of the foregoing. 
 (c) Adjustments. In the event that any distribution (whether in the form of cash, Units, other securities, or other property), recapitalization,
split, reverse split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Units or other securities of the Partnership, issuance of warrants or other rights to purchase Units or other securities of the
Partnership, or other similar transaction or event affects the Units, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of Units (or other securities or property) with respect to
which Awards may be granted, (ii) the number and type of Units (or other securities or property) subject to outstanding Awards, and (iii) the grant or exercise price with respect to any Award or, make provision for a cash 

  

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payment to the holder of an outstanding Award; provided, that the number of Units subject to any Award shall always be a whole number. 
  

	5.	Eligibility. 

 Any Employee, Consultant or Director
shall be eligible to be designated a Participant and receive an Award under the Plan. 
  

	6.	Awards. 

 Awards may, in the discretion of the
Committee, be granted either alone or in addition to, in tandem with or in substitution for any other Award granted under the Plan or any award granted under any other plan of the Company or any Affiliate. Awards granted in addition to or in tandem
with other Awards or awards granted under any other plan of the Company or any Affiliate may be granted either at the same time as or at a different time from the grant of such other Awards or awards. 
 (a) Units. The Committee shall have the discretion to determine the Employees, Consultants and Directors to whom Units shall be granted and the
number of Units to be granted. All Units granted shall be fully vested upon grant and shall not be subject to forfeiture. 
 (b)
Restricted Units. The Committee shall have the authority to determine the Employees, Consultants and Directors to whom Restricted Units shall be granted, the number of Restricted Units to be granted to each such Participant, the Restricted
Period, the conditions under which the Restricted Units may become vested or forfeited, and such other terms and conditions as the Committee may establish with respect to such Awards. To the extent provided by the Committee, in its discretion, a
grant of Restricted Units may provide that distributions made by the Partnership with respect to the Restricted Units shall be subject to the same forfeiture and other restrictions as the Restricted Unit and, if restricted, such distributions shall
be held, without interest, until the Restricted Unit vests or is forfeited with the accumulated distributions being paid or forfeited at the same time, as the case may be. Absent such a restriction on the distributions in the Award Agreement,
distributions during the Restricted Period shall be paid to the holder of the Restricted Unit without restriction. 
 (c) Phantom
Units. The Committee shall have the authority to determine the Employees, Consultants and Directors to whom Phantom Units shall be granted, the number of Phantom Units to be granted to each such Participant, the Restricted Period, the time or
conditions under which the Phantom Units may become vested or forfeited, which may include, without limitation, the accelerated vesting upon the achievement of specified performance goals, and such other terms and conditions as the Committee may
establish with respect to such Awards, including whether DERs are granted with respect to such Phantom Units. 
 (d) Options. The
Committee shall have the authority to determine the Employees, Consultants and Directors to whom Options shall be granted, the number of Units to be covered by each Option, whether DERs are granted with respect to such Option, the purchase price
therefor and the conditions and limitations applicable to the exercise of the Option as the Committee shall determine, that are not inconsistent with the provisions of the Plan. The term of an Option may not exceed 10 years. The purchase price per
Unit purchasable under an Option 

  

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shall be determined by the Committee at the time the Option is granted, provided such purchase price may not be less than 100% of its Fair Market Value as of
the date of grant. The Committee shall determine the time or times at which an Option may be exercised in whole or in part, which may include, without limitation, accelerated vesting upon the achievement of specified performance goals, and the
method or methods by which payment of the exercise price with respect thereto may be made or deemed to have been made, which may include, without limitation, cash, check acceptable to the Company, a broker-assisted cashless exercise through
procedures approved by the Committee, delivery of previously owned Units having a Fair Market Value on the exercise date equal to the relevant exercise, or any combination thereof. 
 (e) Unit Appreciation Rights. The Committee shall have the authority to determine the Employees, Consultants and Directors to whom Unit
Appreciation Rights shall be granted, the number of Units to be covered by each grant and the conditions and limitations applicable to the exercise of the Unit Appreciation Right as the Committee shall determine, that are not inconsistent with the
provisions of the Plan. The exercise price per Unit Appreciation Right shall be not less than 100% of its Fair Market Value as of the date of grant. The term of a Unit Appreciation Right may not exceed 10 years. 
 (f) Distribution Equivalent Rights. The Committee shall have the authority to determine the Employees, Consultants and Directors to whom DERs are
granted, whether such DERs are tandem or separate Awards, whether the DERs shall be paid directly to the Participant, be credited to a bookkeeping account (with or without interest in the discretion of the Committee) the vesting restrictions and
payment provisions applicable to the Award, and such other provisions or restrictions as determined by the Committee in its discretion all of which shall be specified in the Award Agreements. 
  

	7.	Limits on Transfer of Awards. 

 Each Award shall be
exercisable or payable only to the Participant during the Participant’s lifetime, or to the person to whom the Participant’s rights shall pass by will or the laws of descent and distribution. No Award and no right under any such Award may
be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the
Company or any Affiliate. Notwithstanding the foregoing, to the extent specifically provided by the Committee with respect to an Award, an Award may be transferred by a Participant without consideration to immediate family members or related family
trusts, limited partnerships or similar entities or on such terms and conditions as the Committee may from time to time establish. 
  

	8.	Securities Restrictions. 

 (a) All certificates for
Units or other securities of the Partnership delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules,
regulations, and other requirements of the SEC, any stock exchange upon which such Units or other securities are then listed, and any applicable federal or state laws, and the Committee may 

  

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cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 
 (b) Notwithstanding anything in the Plan or any Award Agreement to the contrary, delivery of Units pursuant to the exercise or vesting of an Award may be
deferred for any period during which, in the good faith determination of the Committee, the Company is not reasonably able to obtain Units to deliver pursuant to such Award without violating the rules or regulations of any applicable law or
securities exchange. No Units or other securities shall be delivered pursuant to any Award until payment in full of any amount required to be paid pursuant to the Plan or the applicable Award Agreement (including, without limitation, any exercise
price or tax withholding) is received by the Company. 
  

	9.	Change of Control. 

 Unless specifically provided
otherwise in the Award Agreement, upon a Change of Control or such time prior thereto as established by the Committee, all outstanding Awards shall automatically vest or become exercisable in full, as the case may be. In this regard, all Restricted
Periods shall terminate. 
 Except as otherwise provided in the Award Agreement, the difference between the Fair Market Value of Units on the
payment date and the exercise price of an Option or UAR that is or becomes fully vested and exercisable as of the date of a Change of Control (or any earlier date related to the Change of Control and established by the Committee) shall be paid in a
single payment in Units, or cash and/or other property, or any combination of Units and cash and/or other property, as determined by the Committee. Except as otherwise provided in the Award Agreement, any Award of Phantom Units or Restricted Units
that pursuant to this Section 9 are deemed to have the applicable Restriction Period lapse (and to have all applicable performance criteria achieved at the maximum level, if any) as of the date of a Change of Control (or any earlier date
related to the Change of Control and established by the Committee), shall be settled by (i) issuance of unrestricted Units based on the number of Units that were subject to the Award on the date of grant of the Award or (ii) payment of
cash and/or other property equal to the Fair Market Value of a Unit on the payout date for each Phantom Unit or Restricted Unit or (iii) any combination of payouts under clauses (i) and (ii) of this sentence, as determined by the
Committee. Any accelerated payout pursuant to this Section 9 shall be made in a single payment within 30 days after the date of the Change of Control. 
 To the extent an Option or UAR is not vested or exercisable, or a Phantom Unit or Restricted Unit does not vest, pursuant to the preceding provisions of this Section 9 or the Award Agreement upon the Change of
Control, the Committee may, in its discretion, cancel such Award or provide for an assumption of such Award or a replacement grant on substantially the same terms; provided, however, upon any cancellation of an Option or UAR that has an exercise
price less than the Fair Market Value of a Unit as of the date of cancellation or a Phantom Unit or Restricted Unit, the holder shall be paid an amount in Units or cash and/or other property or any combination of cash and/or other property, as
determined by the Committee, equal to the difference between the Fair Market Value of a Unit and the exercise price if an Option or UAR or equal to the Fair Market Value of a Unit, if a Phantom Unit or Restricted Unit. 
  

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	10.	Amendment and Termination. 

 Except as required by
applicable law or the rules of the principal securities exchange on which the Units are traded, the Board may amend, alter, suspend, discontinue, or terminate the Plan in any manner, including increasing the number of Units available for Awards
under the Plan, without the consent of any Participant, any other holder or beneficiary of an Award or any other Person. 
  

	11.	General Provisions. 

 (a) No Rights to Award.
No Person shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Participants. The terms and conditions of Awards need not be the same with respect to each recipient. 
 (b) Tax Withholding. The Company or any Affiliate is authorized to withhold from any Award, from any payment due or transfer made under any Award
or from any compensation or other amount owing to a Participant the amount (in cash, Units, other securities, or other property) of any applicable taxes payable at the minimum statutory rate in respect of the grant of an Award, its exercise, the
lapse of restrictions thereon, or any payment or transfer under an Award or under the Plan and to take such other action as may be necessary in the opinion of the Company to satisfy its withholding obligations for the payment of such taxes.

 (c) No Right to Employment or Services. The grant of an Award shall not be construed as giving a Participant the right to be
retained as an Employee, Consultant or Director, as applicable. Further, the Company or an Affiliate may at any time dismiss a Participant from employment or service at any time. 
 (d) Governing Law. The validity, construction, and effect of the Plan and any rules and regulations relating to the Plan shall be determined in
accordance with the laws of the State of Delaware without regard to its conflict of laws principles. 
 (e) Severability. If any
provision of the Plan or any award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any award under any law deemed applicable by the Committee, such
provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision
shall be stricken as to such jurisdiction, person or award and the remainder of the Plan and any such Award shall remain in full force and effect. 
 (f) Other Laws. The Committee may refuse to issue or transfer any Units or other consideration under an Award if, in its sole discretion, it determines that the issuance or transfer of such Units or such other consideration might
violate any applicable law or regulation, the rules of the principal securities exchange on which the Units are then traded, or entitle the Partnership or an Affiliate to recover the same under Section 16(b) of the Exchange Act, and any payment
tendered to the Company by a Participant, other holder or beneficiary in connection with the exercise of such Award shall be promptly refunded to the relevant Participant, holder or beneficiary. 
  

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 (g) No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to
create a trust or separate fund of any kind or a fiduciary relationship between the Partnership, Company or any participating Affiliate and a Participant or any other Person. To the extent that any Person acquires a right to receive payments from
the Partnership, Company or any Affiliate pursuant to an Award, such right shall be no greater than the right of any general unsecured creditor of the Partnership, Company or any participating Affiliate. 
 (h) No Fractional Units. No fractional Units shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine
whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional Units or whether such fractional Units or any rights thereto shall be canceled, terminated, or otherwise eliminated. 
 (i) Facility of Payment. Any amounts payable hereunder to any person under legal disability or who, in the judgment of the Committee, is unable to
properly manage his financial affairs, may be paid to the legal representative of such person, or may be applied for the benefit of such person in any manner which the Committee may select, and the Partnership, Company and its Affiliates shall be
relieved of any further liability for payment of such amounts. 
 (k) Participation by Affiliates. In making Awards to Employees
employed by an Affiliate of the Company, the Committee shall be acting on behalf of the Affiliate, and to the extent the Partnership has an obligation to reimburse the Affiliate for compensation paid to Employees for services rendered for the
benefit of the Partnership, such payments or reimbursement payments may be made by the Partnership directly to the Affiliate, and, if made to the Company, shall be received by the Company as agent for the Affiliate. 
 (l) Gender and Number. Words in the masculine gender shall include the feminine gender, the plural shall include the singular and the singular
shall include the plural. 
 (m) No Guarantee of Tax Consequences. None of the Board, the Partnership, the Company, any Affiliate nor
the Committee makes any commitment or guarantee that any federal, state or local tax treatment will apply or be available to any person participating or eligible to participate hereunder. 
  

	12.	Term of the Plan. 

 The Plan shall become effective
on the later of the date of its approval by the Board or the initial public offering of Units and shall terminate on, and no Awards may be granted after, the earliest of the date established by the Board or the Committee, the 10th anniversary of the
date the Plan was adopted by the Company (or such earlier anniversary, if any, required by the rules of the exchange on which Units are traded) or the date Units are no longer available for delivery pursuant to Awards under the Plan. However, unless
otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award granted prior to such termination, and the authority of the Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award or to waive any
conditions or rights under such Award, shall extend beyond such termination date. 
  

 -9-Form of Employment Agreement

 Exhibit 10.6 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (“Agreement”) made and entered into this
             day of May, 2007, to be effective as of the 22nd day of February, 2007 (the “Effective Date”), by and between SEMGROUP ENERGY PARTNERS MANAGEMENT, INC., a
Delaware corporation (the “Company”), and [            ] (the “Executive”). 
 W I T N E S S E T H: 
 WHEREAS, the Company is a wholly-owned subsidiary of SemGroup Energy Partners,
G.P., L.L.C. (the “General Partner”), the general partner of SemGroup Energy Partners, L.P., a Delaware limited partnership (the “MLP”); 
 WHEREAS, the MLP is currently engaging in various transactions whereby certain of its common units representing limited partner interests in the MLP will be offered to the public; 
 WHEREAS, the Executive is currently employed by SemManagement, L.L.C., a Delaware limited liability company, to perform services for SemGroup, L.P., an
Oklahoma limited partnership (“SemGroup”), and its Affiliates; 
 WHEREAS, the Company wishes to secure the services of the
Executive subject to the contractual terms and conditions set forth herein; and 
 WHEREAS, the Executive is willing to enter into this
Agreement upon the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the mutual promises and agreements set forth
herein, the parties hereto agree as follows: 
 1. Employment. The Company hereby agrees to employ the Executive, and the Executive
hereby agrees to accept such employment with the Company, all upon the terms and conditions set forth herein. 
 2. Term of
Employment. Subject to the terms and conditions of this Agreement, the Executive shall be employed for a term commencing on the Effective Date and ending on the second (2nd) anniversary of the Effective Date (the “Term”) unless
sooner terminated as provided for herein. The Term shall renew automatically for additional one (1) year terms, unless either party gives written notice no less than ninety (90) days prior to the expiration of the Term that it does not
intend to extend the Term. 
 3. Duties and Responsibilities. 
  
 A. Capacity. During the Term, the Executive shall serve in
the capacity of [            ] subject to the supervision of the Board of Directors of the Company (the “Board”). 
  

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 B. Duties. During the Term, and excluding any periods of disability, vacation or
sick leave to which the Executive is entitled, the Executive shall devote as much time to the management of the business and affairs of the Company and the MLP as is necessary for the proper conduct of the business and affairs of the Company and the
MLP. The Executive may be required by the Board to provide services to, or otherwise serve as an officer or director of any direct or indirect subsidiary of the Company or the MLP. During the Term, it shall not be a violation of this Agreement for
the Executive to (i) continue employment with and perform services for SemGroup or any of its Affiliates, (ii) serve on corporate, civic or charitable boards or committees and (iii) deliver lectures or fulfill speaking engagements.
For purposes of this Agreement, “Affiliate” means with respect to any Person (as defined in Section 6.C.), any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common
control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, 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. 
 C. Standard of Performance. The Executive will perform his duties
under this Agreement with fidelity and loyalty, to the best of his ability, experience and talent and in a manner consistent with his duties and responsibilities. 
 4. Compensation. 
  
 A. Base Salary. The Company shall pay the Executive a salary (the “Base Salary”) of $[            ] per month, prorated for partial months of employment.
The Base Salary shall be payable in accordance with the general payroll practices of the Company in effect from time to time. During the Term, the Base Salary shall be reviewed at least annually by the Board after consultation with the Executive and
may from time to time be increased (but not decreased) as solely determined by the Board. Effective as of the date of any such increase, the Base Salary as so increased shall be considered the new Base Salary for all purposes of this Agreement and
may not thereafter be reduced. Any increase in the Base Salary shall not limit or reduce any other obligation of the Company to the Executive under this Agreement. 
 B. Performance Bonus. The Executive shall be eligible for discretionary bonus awards payable in cash or common units of the MLP,
as so determined solely by the Board, based on performance objectives determined by the Board. 
 C. Long-Term
Incentives. Awards of unit options, unit grants, restricted units and/or other forms of equity based compensation to the Executive may be made from time to time during the Term by the Board in its sole discretion, whose decision will be based
upon performance and award guidelines for senior executives of the Company established periodically by the Board in its sole discretion. 
 D. Benefits. 
 (1) If and to the extent that the Company maintains employee benefit
plans (including, but not limited to, pension, profit-sharing, disability, accident, medical, life insurance, and hospitalization plans) (it being understood that the 
  

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 Company may but shall not be obligated to do so), the Executive shall be entitled to participate therein
in accordance with the Company’s regular practices with respect to similarly situated senior executives. The Company will have the right to amend or terminate any such benefit plans it may choose to establish. 
 (2) The Executive shall be entitled to prompt reimbursement from the Company for reasonable out-of-pocket expenses incurred by him in the
course of the performance of his duties hereunder, upon the submission of appropriate documentation in accordance with the practices, policies and procedures applicable to other senior executives of the Company. 
 (3) The Executive shall be entitled to such vacation, holidays and other paid or unpaid leaves of absence as are consistent with the
Company’s normal policies available to other senior executives of the Company or as are otherwise approved by the Board. 
 E. Payment by Affiliates. Compensation and benefits provided under this Agreement may, at the election of the Company, be provided for administrative convenience by SemGroup or any of its or the Company’s Affiliates. 

5. Termination of Employment 
 Notwithstanding the provisions of Section 2 hereof, the Executive’s employment hereunder shall terminate under any of the following conditions: 
 A. Death. The Executive’s employment under this Agreement shall terminate automatically upon his death. 
 B. Total Disability. The Company shall have the right to terminate this Agreement if the Executive becomes Totally Disabled. For
purposes of this Agreement, “Totally Disabled” means that either (i) the Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to
result in death or can be expected to last for a continuous period of not less than 12 months or (ii) the Executive is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company or any entity that would be
considered a single “service recipient” with the Company pursuant to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). Prior to a determination that the Executive is Totally Disabled, but after the
Executive has exhausted all sick leave and vacation benefits provided by the Company, the Executive shall continue to receive his Base Salary, offset by any disability benefits he may be eligible to receive. 
  

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 C. Termination by Company for Cause. The Executive’s employment hereunder may
be terminated for Cause upon written notice by the Company. For purposes of this Agreement, “Cause” shall mean: 
 (1) conviction of the Executive by a court of competent jurisdiction of any felony or a crime involving moral turpitude; 
 (2) the Executive’s willful and intentional failure or willful and intentional refusal to follow reasonable and lawful instructions of the Board; 
 (3) the Executive’s material breach or default in the performance of his obligations under this Agreement; or 
 (4) the Executive’s act of misappropriation, embezzlement, intentional fraud or similar conduct involving the Company. 
 The Executive may not be terminated for Cause pursuant to subsections (2) and (3) above unless the Executive is given written notice of the
circumstances constituting “Cause” and a reasonable period to cure such circumstances, which period shall be no less than thirty (30) days. 
 D. Termination for Good Reason. The Executive’s employment hereunder may be terminated by the Executive for Good Reason on written notice by the Executive to the Company. For purposes of this Agreement,
“Good Reason” means the occurrence of any of the following circumstances without the Executive’s consent: 
 (1) a material reduction in the Executive’s Base Salary; 
 (2) a material diminution of the Executive’s
duties, authority or responsibilities as in effect immediately prior to such diminution; or 
 (3) the relocation of the
Executive’s principal work location to a location more than 50 miles from its current location. 
 In order to be eligible for payment
on account of a Good Reason termination, the Executive must: (i) provide written notice to the Company within 90 days following the first event or condition which gives rise to his claim of Good Reason under this section (the “Initial
Breach”); (ii) provide the Company 30 days from the date of such notice in which to “cure” such event or condition and (iii) actually terminate employment within 2 years of the date of the Initial Breach. 
 6. Payments Upon Termination 
 A. Upon termination of the Executive’s employment hereunder, the Company shall be obligated to pay and the Executive shall be entitled to receive, within ten (10) days of termination, the Base Salary which has accrued for services
performed to the date of termination and which has not yet been paid. In addition, the Executive shall be entitled to any vested benefits to which he is entitled under the terms of any applicable benefit plan or program, long-. 
  

 4 

 term incentive plan, restricted unit plan and unit option plan of the Company, and, to the extent
applicable, short-term or long-term disability plan or program with respect to any disability, or any life insurance policies and the benefits provided by such plan, program or policies, or applicable law as duly adopted from time to time by the
Board, and in all events subject to the payment timing and other restrictions as may be set forth in such plan or program. 
 B. Upon termination of the Executive’s employment by the Company without Cause or by the Executive for Good Reason, the Company shall be obligated to pay and the Executive shall be entitled to receive: 
 (1) all of the amounts and benefits described in Section 6.A. hereof; 
 (2) a lump sum payment, within 10 days of termination, equal to twelve (12) months of the Executive’s Base Salary; and

 (3) continued participation in all group health plans (medical, dental and vision), if any, of the Company for the
remainder of the Term or, if longer, until the first anniversary of the Executive’s termination of employment, as if there had been no termination of employment. 
 Payments under Section 6.B., with the exception of amounts due pursuant to Section 6.B(1), are conditioned on the execution by
the Executive of a release of all employment-related claims; provided, however, that such release shall be contingent upon the Company’s satisfaction of all terms and conditions of this Section. 
 C. If within the one (1) year period following the occurrence of a Change of Control, the Executive’s employment is terminated
by the Company without Cause or by the Executive for Good Reason, in lieu of the severance benefits under 6.B., the Executive will be entitled to the benefits identical to those set forth in Section 6.B. except that the amount described in
subsection (2) will be equal to twenty-four (24) months of the Executive’s Base Salary. For purposes of this Agreement, “Change of Control” means, and shall be deemed to have occurred upon the occurrence of one or more of
the following events: (i) any “person” or “group” within the meaning of those terms as used in Sections 13(d) and 14(d)(2) of the Exchange Act, other than SemGroup, L.P., an Oklahoma limited partnership, and its Affiliates,
shall become the beneficial owner, by way of merger, consolidation, recapitalization, reorganization or otherwise, of 50% or more of the combined voting power of the equity interests in the General Partner or the MLP; (ii) the limited partners
of the MLP approve, in one or a series of transactions, a plan of complete liquidation of the MLP; (iii) the sale or other disposition by either the General Partner or the MLP of all or substantially all of its assets in one or more
transactions to any individual, corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government body or agency or political subdivision thereof or other entity (a “Person”)
other than the General Partner or an Affiliate of the General Partner; or (iv) a transaction resulting in a Person other than the General Partner or an Affiliate of the General Partner being the general partner of the MLP. 
 Payments under Section 6.C., with the exception of amounts due pursuant to Section 6.B(1), are conditioned on the execution by
the Executive of a release of all 

  

 5 

 
employment-related claims; provided, however, that such release shall be contingent upon the Company’s satisfaction of all terms and
conditions of this Section. 
 D. Upon termination of the Executive’s employment upon the death of the Executive
pursuant to Section 5.A., the Company shall be obligated to pay, and the Executive shall be entitled to receive: 
 (1)
all of the amounts and vested benefits described in Section 6.A.; 
 (2) any death benefit payable under a plan or policy
provided by the Company; and 
 (3) continued participation by the Executive’s dependents in the group health plans
(medical, dental and vision), if any, of the Company for the remainder of the Term or, if longer, until the first anniversary of the Executive’s termination of employment, as if there had been no termination of employment. 
 E. Upon termination of the Executive’s employment upon the Executive’s becoming Totally Disabled pursuant to Section 5.B.,
the Company shall be obligated to pay, and the Executive shall be entitled to receive: 
 (1) all of the amounts and vested
benefits described in Section 6.A.; 
 (2) the Base Salary, at the rate in effect immediately prior to the date of his
termination of employment due to being Totally Disabled, for the remainder of the Term, offset by any payments the Executive receives under the Company’s long-term disability plan and any supplements thereto, whether funded or unfunded, which
is adopted by the Company for the Executive’s benefit and not attributable to the Executive’s own contributions; and 
 (3) continued participation by the Executive and his dependents in the group health plans (medical, dental and vision) of the Company for the remainder of the Term or, if longer, until the first anniversary of the Executive’s
termination of employment, as if there had been no termination of employment. 
 Payments under Section 6.E., with the
exception of amounts due pursuant to Section 6.E(1), are conditioned on the execution by the Executive or the Executive’s representative of a release of all employment-related claims; provided, however, that such release
shall be contingent upon the Company’s satisfaction of all terms and conditions of this Section. 
 F. Upon voluntary
termination of employment by the Executive for any reason whatsoever (other than for Good Reason as described in Section 6.B. or 6.C.), termination by the Company for Cause or any termination following the expiration of the Term, the Company
shall have no further liability under or in connection with this Agreement, except to provide the amounts set forth in Section 6.A. 
 G. Upon voluntary or involuntary termination of employment of the Executive for any reason whatsoever or expiration of the Term, the Executive shall continue to 

  

 6 

 
be subject to the provisions of Section 7, hereof (it being understood and agreed that such provisions shall survive any termination or expiration of the
Executive’s employment hereunder for any reason whatsoever). 
 H. For the avoidance of doubt, while termination of
employment with the Company will end the Company’s obligations pursuant to Section 4, termination of employment for purposes of rights to severance payments under Section 6.B. or 6.C. of this Agreement shall not be deemed to have
occurred until the Executive has terminated employment with the Company, SemGroup and all of their Affiliates, for so long as such entities are considered a single service recipient for purposes of determining whether a “separation from
service” has occurred under Section 409A of the Code. 
 7. Confidentiality and Return of Property. 
 A. Confidential Information. 
 (1) Company Information. The Company agrees that it will provide the Executive with Confidential Information that will enable the Executive to optimize the performance of the Executive’s duties to the
Company. In exchange, the Executive agrees to use such Confidential Information solely for the Company’s benefit. The Company and the Executive agree and acknowledge that its provision of such Confidential Information is not contingent on the
Executive’s continued employment with the Company. Notwithstanding the preceding sentence, upon the termination of the Executive’s employment for any reason, the Company shall have no obligation to provide the Executive with its
Confidential Information. “Confidential Information” means any Company proprietary information, technical data, trade secrets or know-how, including, but not limited to, research, product plans, products services, customer lists and
customers (including, but not limited to, customers of the Company on whom the Executive called or with whom the Executive became acquainted during the term of the Executive’s employment), markets, software, developments, inventions, processes,
formulas, technology, designs, drawings, engineering, hardware configuration information, marketing finances or other business information disclosed to the Executive by the Company either directly or indirectly in writing, orally or by drawings or
observation of parts or equipment. Confidential Information does not include any of the foregoing items which has become publicly known and made generally available through no wrongful act of the Executive or of others who were under confidentiality
obligations as to the item or items involved or improvements or new versions. For purposes of this Section 7, references to the Company include the General Partner or any Affiliate. 
 The Executive agrees at all times during the Term and thereafter, to hold in strictest confidence, and not to use, except for the
exclusive benefit of the Company, or to disclose to any person or entity without written authorization of the Board, any Confidential Information of the Company. 
  

 7 

 (2) Third Party Information. The Executive recognizes that the Company has
received and in the future will receive from third parties their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited
purposes. The Executive shall hold all such confidential or proprietary information in the strictest confidence and not disclose it to any person or entity or use it except as necessary in carrying out the Executive’s work for the Company
consistent with the Company’s agreement with such third party. 
 B. Returning Company Documents. At the time of
leaving the employ of the Company, the Executive will deliver to the Company (and will not keep in the Executive’s possession) specifications, drawings blueprints, sketches, materials, equipment, other documents or property, or reproductions of
any aforementioned items developed by the Executive pursuant to the Executive’s employment with the Company or otherwise belonging to the Company, its successors or assigns. 
 C. Notification of New Employer. In the event that the Executive leaves the employ of the Company, the Executive hereby grants
consent to notification by the Company to the Executive’s new employer about the Executive’s rights and obligations under this Agreement. 
 D. Representations. The Executive agrees to execute any proper oath or verify any proper document required to carry out the terms of this Agreement. The Executive represents that his performance of all the
terms of this Agreement will not breach any agreement to keep in confidence proprietary information acquired by the Executive in confidence or in trust prior to the Executive’s employment by the Company. The Executive has not entered into, and
the Executive agrees that he will not enter into, any oral or written agreement in conflict herewith. 
 8. Arbitration. Any dispute
arising out of or relating to this Agreement, including the breach, termination or validity thereof, shall be finally resolved by arbitration in accordance with the CPR Institute for Dispute Resolution Rules for Non-Administered Arbitration in
effect on the date of this Agreement by a single arbitrator selected in accordance with the CPR Rules. The arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16, and judgment on the award rendered by the arbitrator
may be entered by any court having jurisdiction thereof. The place of arbitration shall be in Tulsa, Oklahoma. The arbitrator’s decision must be based on the provisions of this Agreement and the relevant facts, and the arbitrator’s
reasoned decision and award shall be binding on both parties. Nothing herein is or shall be deemed to preclude the Company’s resort to the injunctive relief prescribed in this Agreement, including any injunctive relief implemented by the
arbitrator pursuant to this Section 7. The parties will each bear their own attorneys’ fees and costs in connection with any dispute. 
 9. Notices. All notices and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by registered or certified mail (return receipt
requested and with postage prepaid thereon) or by facsimile transmission to the respective parties at the following addresses (or at such other 
  

 8 

 
address as either party shall have previously furnished to the other in accordance with the terms of this Section): 
 if to the Company: 
 SemGroup Energy Partners G.P., L.L.C. 
 Two Warren Place 
 6120 South Yale Avenue, Suite 700 
 Tulsa, Oklahoma 74136 
 Attention: Chairman of the Board 
 if to the Executive: 
 [            ] 
 [            ] 
 [            ] 
 10. Amendment; Waiver. The terms and
provisions of this Agreement may be modified or amended only by a written instrument executed by each of the parties hereto, and compliance with the terms and provisions hereof may be waived only by a written instrument executed by each party
entitled to the benefits thereof. No failure or delay on the part of any party in exercising any right, power or privilege granted hereunder shall constitute a waiver thereof, nor shall any single or partial exercise of any such right, power or
privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege granted hereunder. 
 11.
Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersede all prior written or oral agreements or understandings between the parties relating thereto.

 12. Severability. In the event that any term or provision of this Agreement is found to be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining terms and provisions hereof shall not be in any way affected or impaired thereby, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been
contained therein. 
 13. Binding Effect; Assignment. This Agreement shall be binding upon and inure to the benefit of the parties and
their respective successors and assigns (it being understood and agreed that, except as expressly provided herein, nothing contained in this Agreement is intended to confer upon any other person or entity any rights, benefits or remedies of any kind
or character whatsoever). The Executive may not assign this Agreement without the prior written consent of the Company. Except as otherwise provided in this Agreement, the Company may assign this Agreement to any of its Affiliates or to any
successor (whether by operation of law or otherwise) to all or substantially all of its business and assets without the consent of the Executive. 
 14. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Oklahoma (except that no effect shall be given to any 
  

 9 

 conflicts of law principles thereof that would require the application of the laws of another jurisdiction). 

15. Headings. The headings of the sections contained in this Agreement are for convenience only and shall not be deemed to control or affect
the meaning or construction of any provision of this Agreement. 
 16. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 [END OF
PAGE] 
  

 10 

 IN WITNESS THEREOF, the Company has caused this Agreement to be executed by its duly authorized officer
and the Executive has signed this Agreement as of the Effective Date. 
  

			
	SEMGROUP ENERGY PARTNERS G.P., L.L.C.
	
	 
	By:	 	
		 	
	
	EXECUTIVE
	
	
	                
	[            ]

  
  
  
 Signature Page to Employment Agreement

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