X0202 4 2006-02-02 0000050104 TESORO CORP /NEW/ TSO 0001315843 Flagg Claude A 300 CONCORD PLAZA SAN ANTONIO TX 78216 0 1 0 0 SVP, Planning & Optimization Common Stock 2006-02-02 4 A 0 4200 67.35 A 9100 D Employee Stock Option (Right to Buy) 67.35 2006-02-02 4 A 0 19800 A 2016-02-02 Common Stock 19800 60400 D Restricted Stock which vests in 3 equal annual installments, beginning 1 year from February 2, 2006. Becomes exercisable in 3 equal annual installments, beginning 1 year from February 2, 2006. Various option exercise dates and prices. The Company's 1993 Long-Term Executive Incentive Compensation Plan permits grantees to pay their federal income tax liability with shares, reducing the restricted share grant. The Total referened above represents the total grant before netting for any tax payments. Charles S. Parrish, Attorney-in-Fact for Claude A. Flagg 2006-02-06