e8vk

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OnVXRqBwUG53n72Trtvm9GbZ7qzZp03wfcko/8wLVpbCKP9NYQba14nG8mHBpAVF X4isfezaaxqRMMzyrkH3fw== 0000950134-04-016446.txt : 20041105 0000950134-04-016446.hdr.sgml : 20041105 20041104194735 ACCESSION NUMBER: 0000950134-04-016446 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 8 CONFORMED PERIOD OF REPORT: 20041104 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041105 DATE AS OF CHANGE: 20041104 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HOLLY CORP CENTRAL INDEX KEY: 0000048039 STANDARD INDUSTRIAL CLASSIFICATION: PETROLEUM REFINING [2911] IRS NUMBER: 751056913 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03876 FILM NUMBER: 041120945 BUSINESS ADDRESS: STREET 1: 100 CRESCENT COURT STREET 2: SUITE 1600 CITY: DALLAS STATE: TX ZIP: 75201 BUSINESS PHONE: 2148713555 MAIL ADDRESS: STREET 1: 100 CRESCENT COURT STREET 2: SUITE 1600 CITY: DALLAS STATE: TX ZIP: 75201 FORMER COMPANY: FORMER CONFORMED NAME: GENERAL APPLIANCE CORP DATE OF NAME CHANGE: 19680508 8-K 1 d19809e8vk.htm FORM 8-K e8vk

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 4, 2004

HOLLY CORPORATION

(Exact name of Registrant as specified in its charter)


Delaware (State or other jurisdiction of incorporation)		001-03876 (Commission File Number)		75-1056913 (I.R.S. Employer Identification Number)


100 Crescent Court, Suite 1600 Dallas, Texas (Address of principal executive offices)		75201-6927 (Zip code)

Registrant’s telephone number, including area code: (214) 871-3555

Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS


	Item 1.01. Entry into a Material Definitive Agreement
	Item 9.01. Financial Statements and Exhibits
SIGNATURES
EXHIBIT INDEX
Form of Director Restricted Stock Agreement
Form of Executive Restricted Stock Agreement (two-year term vesting form)
Form of Executive Restricted Stock Agreement (two-year term and performance vesting form)
Form of Executive Restricted Stock Agreement (five-year term vesting form)
Form of Executive Restricted Stock Agreement (five-year term and performance vesting form)
Form of Performance Share Unit Agreement (one-year form)
Form of Performance Share Unit Agreement (three-year form)

Item 1.01. Entry into a Material Definitive Agreement

Pursuant to the Holly Corporation Long-Term Incentive Compensation Plan, Holly Corporation grants to outside directors restricted stock and to certain of its employees, including executive officers, restricted stock and performance share units.

Forms of agreements for grants of restricted stock to outside directors and to executive officers and grants of performance share units to employees including executive officers are attached as Exhibits to this Form 8-K.

Item 9.01. Financial Statements and Exhibits


10.1	-	Form of Director Restricted Stock Agreement.
10.2	-	Form of Executive Restricted Stock Agreement [two-year term vesting form].
10.3	-	Form of Executive Restricted Stock Agreement [two-year term and performance vesting form].
10.4	-	Form of Executive Restricted Stock Agreement [five-year term vesting form].
10.5	-	Form of Executive Restricted Stock Agreement [five-year term and performance vesting form].
10.6	-	Form of Performance Share Unit Agreement [one-year form].
10.7	-	Form of Performance Share Unit Agreement [three-year form].

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

HOLLY CORPORATION

By: /s/ Stephen J. McDonnell
Stephen J. McDonnell
Date: November 4, 2004 Vice President and Chief Financial Officer

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EXHIBIT INDEX


Exhibit
Number		Exhibit Title
10.1	-		Form of Director Restricted Stock Agreement.
10.2	-		Form of Executive Restricted Stock Agreement [two-year term vesting form].
10.3	-		Form of Executive Restricted Stock Agreement [two-year term and performance vesting form].
10.4	-		Form of Executive Restricted Stock Agreement [five-year term vesting form].
10.5	-		Form of Executive Restricted Stock Agreement [five-year term and performance vesting form].
10.6	-		Form of Performance Share Unit Agreement [one-year form].
10.7	-		Form of Performance Share Unit Agreement [three-year form].

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EX-10.1 2 d19809exv10w1.htm FORM OF DIRECTOR RESTRICTED STOCK AGREEMENT exv10w1

Exhibit 10.1

[FORM]

HOLLY CORPORATION
DIRECTOR
RESTRICTED STOCK AGREEMENT

This Restricted Stock Agreement (the “Agreement”) is made and entered into by and between HOLLY CORPORATION, a Delaware corporation (the “Company”), and (the “Director”). This Agreement is entered into as of the day of , (the “Date of Grant”).

WITNESSETH:

WHEREAS, the Company has adopted the HOLLY CORPORATION LONG-TERM INCENTIVE COMPENSATION PLAN (the “Plan”) to attract, retain and motivate employees, directors and consultants; and

WHEREAS, the issuance to the Director of restricted shares under the Plan as part of the Director’s compensation for service as a member of the Board of Directors of the Company (the “Board”) was authorized by resolution of the Board on November 14, 2003.

NOW, THEREFORE, in consideration of the Director’s agreement to serve as a member of the Board, the Director and the Company agree as follows:

1. Grant. The Company hereby grants to the Director as of the Date of Grant an award of Shares (as defined in the Plan), subject to the terms and conditions set forth in this Agreement, including, without limitation, those described in Section 5 (the “Restricted Shares”).

2. Restricted Shares. The Company shall issue in the Director’s name the Restricted Shares and such Restricted Shares shall be held for the Director in book entry form by the Company’s transfer agent with a notation that the shares are subject to restrictions. The Director hereby agrees that the Restricted Shares shall be held subject to restrictions as provided in the Agreement until such time as the Restricted Shares become Vested Shares (as defined in Section 4 below). The Director hereby agrees that if part or all of the Restricted Shares are forfeited pursuant to this Agreement, the Company shall have the right to direct the Company’s transfer agent to cancel such forfeited Restricted Shares or, at the Company’s election, transfer such Restricted Shares to the Company or to any designee of the Company.

3. Rights of Director. Effective as of the Date of Grant, the Director is a stockholder with respect to all of the Restricted Shares granted to him pursuant to Section 1 and has all of the rights of a stockholder with respect to all such Restricted Shares, including the right to vote such Restricted Shares and the right to receive all dividends and other distributions paid with respect to such Restricted Shares; provided,

however, that such Restricted Shares shall be subject to the restrictions hereinafter described, including, without limitation, those described in Section 5.

4. Forfeiture and Expiration of Restrictions.

(a) The Director shall forfeit to the Company all of the Restricted Shares immediately and without any payment to the Director whatsoever if the Director ceases to be a member of the Board before the Annual Meeting of Stockholders of the Company in at which directors of the Company are elected (the “Vesting Date”), for any reason, other than death, total and permanent disability, or retirement, as provided in Section 4(b) below. On and after such date, all such Restricted Shares shall be fully vested and nonforfeitable (“Vested Shares”).

(b) In the event of the Director’s (i) death, (ii) total and permanent disability, as determined by the Long-Term Incentive Compensation Plan Committee (the “Committee”) in its sole discretion, or (iii) retirement, in accordance with the retirement policy of the Company regarding Board members, before lapse of all restrictions pursuant to Section 4(a) above, the Director shall be vested with a number of the Restricted Shares equal to the number of Restricted Shares specified in Section 1 times the percentage that the period from the Date of Grant to the date of death, disability or retirement bears to 1095 days and any remaining Restricted Shares shall be forfeited; provided, however, that any fractional shares will be forfeited to the Company. The Director or his designated beneficiary or estate will have no right to any Restricted Shares that remain subject to restrictions, and those Restricted Shares will be forfeited.

(c) In the event of a Change in Control before lapse of all restrictions pursuant to Section 4(a) above, all restrictions described in Section 5 shall lapse and the Restricted Shares will become Vested Shares and the Company shall deliver a certificate or certificates for the Vested Shares to the Director as soon as practicable thereafter. For purposes of this Agreement, a “Change in Control” shall occur if:

(i) Any “Person” (as defined in Section 4(d)(i) below), other than (1) the Company or any of its subsidiaries, (2) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its “Affiliates” (as defined in Section 4(d)(iv) below) (3) an underwriter temporarily holding securities pursuant to an offering of such securities, or (4) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, is or becomes the “Beneficial Owner” (as defined in Section 4(d)(ii) below), directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such person any securities acquired directly from the Company or its Affiliates) representing more than forty percent (40%) of the combined voting power of the Company’s then outstanding securities, or more than

forty percent (40%) of the then outstanding common stock of the Company, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in Section 4(c)(iii)(A) below.

(ii) The individuals who as of the Date of Grant constitute the Board of Directors of the Company and any “New Director” (as defined in Section 4(d)(iii) below) cease for any reason to constitute a majority of the Board.

(iii) There is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation, except if:

(A) the merger or consolidation results in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least sixty percent (60%) of the combined voting power of the voting securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation; or

(B) the merger or consolidation is effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly, or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates other than in connection with the acquisition by the Company or its Affiliates of a business) representing more than forty percent (40%) of the combined voting power of the Company’s then outstanding securities.

(iv) The stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity at least sixty percent (60%) of the combined voting power of the voting securities of which is owned by the stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.

(d) Definitions. For purposes of Section 4(c) above,

(i) “Person” shall have the meaning given in section 3(a)(9) of the Securities Exchange Act of 1934 (the “1934 Act”) as modified and used in sections 13(d) and 14(d) of the 1934 Act.

(ii) “Beneficial Owner” shall have the meaning provided in Rule 13d-3 under the 1934 Act.

(iii) “New Director” shall mean an individual whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors as of the Date of Grant or whose election or nomination for election was previously so approved or recommended. However, “New Director” shall not include a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation relating to the election of directors of the Company.

(iv) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under section 12 of the 1934 Act.

5. Limitations on Transfer. The Director agrees that he shall not dispose of (meaning, without limitation, sell, transfer, pledge, exchange, hypothecate or otherwise dispose of) prior to the Vesting Date any Restricted Shares hereby acquired. Any attempted disposition of the Restricted Shares in violation of the preceding sentence shall be null and void, and the Company shall not recognize or give effect to such transfer on its books and records or recognize the person or persons to whom such proposed transfer has been made as the legal or beneficial holder thereof. Notwithstanding the foregoing, part or all of the Restricted Shares or rights under this Agreement may be transferred to a spouse pursuant to a domestic relations order issued by a court of competent jurisdiction; provided, however, such Restricted Shares shall continue to be held pursuant to Section 2 of this Agreement, and the transferee under the domestic relations order shall agree that the Restricted Shares so transferred shall continue to be subject to the terms of this Agreement, including forfeiture in accordance with Section 4(a) of this Agreement and pro rata forfeiture in accordance with Sections 4(a) and (b) of this Agreement.

6. Nontransferability of Agreement. This Agreement and all rights under this Agreement shall not be transferable by the Director during his life other than by will or pursuant to applicable laws of descent and distribution. Any rights and privileges of the Director in connection herewith shall not be transferred, assigned, pledged or hypothecated by the Director or by any other person or persons, in any way, whether by operation of law, or otherwise, and shall not be subject to execution, attachment, garnishment or similar process. In the event of any such occurrence, this Agreement shall automatically be terminated and shall thereafter be null and void. Notwithstanding the foregoing, all or some of the Restricted Shares or rights under this Agreement may be

transferred to a spouse pursuant to a domestic relations order issued by a court of competent jurisdiction, subject to the limitations on such transfer described in Section 5.

7. Adjustment of Restricted Shares. The number of Restricted Shares granted to the Director pursuant to this Agreement shall be adjusted to reflect stock dividends, stock splits or other changes in the capital structure of the Company, all in accordance with the Plan. All provisions of this Agreement shall be applicable to such new or additional or different shares or securities distributed or issued pursuant to the Plan to the same extent that such provisions are applicable to the shares with respect to which they were distributed or issued. In the event that the outstanding Shares (as defined in the Plan) of the Company are exchanged for a different number or kind of shares or other securities, or if additional, new or different shares are distributed with respect to the Shares (as defined in the Plan) through merger, consolidation, or sale of all or substantially all of the assets of the Company, each remaining share subject to this Agreement shall have substituted for it a like number and kind of shares of new or replacement securities as determined in the sole discretion of the Committee, subject to the terms and provisions of the Plan.

8. Delivery of Vested Shares. No Vested Shares shall be delivered pursuant to this Agreement until the approval of any governmental authority required in connection with this Agreement, or the issuance of Vested Shares hereunder, has been received by the Company. The Committee will delay delivery of Vested Shares until the restrictions of Section 5 lapse.

9. Securities Act. The Company shall have the right, but not the obligation, to cause the Restricted Shares to be registered under the appropriate rules and regulations of the Securities and Exchange Commission. The Company shall not be required to deliver any Vested Shares of stock hereunder if, in the opinion of counsel for the Company, such delivery would violate the Securities Act of 1933 or any other applicable federal or state securities laws or regulations.

10. Definitions; Copy of Plan. To the extent not specifically provided herein, all terms used in this Agreement shall have the same meanings ascribed to them in the Plan. By the execution of this Agreement, the Director acknowledges receipt of a copy of the Plan. If any provision of this Agreement is held to be illegal, invalid or unenforceable under any applicable law, then such provision will be deemed to be modified to the minimum extent necessary to render it legal, valid and enforceable; and if such provision cannot be so modified, then this Agreement will be construed as if not containing the provision held to be invalid, and the rights and obligations of the parties will be construed and enforced accordingly.

11. Administration. This Agreement shall at all times be subject to the terms and conditions of the Plan. The Committee shall have sole and complete discretion with respect to all matters reserved to it by the Plan and decisions of a majority of the Committee with respect thereto and this Agreement shall be final and binding upon the Director and the Company. In the event of any conflict between the terms and conditions of this Agreement and the Plan, the provisions of the Plan shall control.

12. Continuation as Director. This Agreement shall not be construed to confer upon the Director any right to continue to serve as a member of the Board.

13. Governing Law. This Agreement shall be interpreted and administered under the laws of the State of Texas, without giving effect to any conflict of laws provisions.

14. Amendments. This Agreement may be amended only by a written agreement executed by the Company and the Director. Any such amendment shall be made only upon the mutual consent of the parties, which consent (of either party) may be withheld for any reason.

15. No Liability for Good Faith Determinations. The Company and the members of the Committee and the Board shall not be liable for any act, omission or determination taken or made in good faith with respect to this Agreement or the Restricted Shares granted hereunder.

16. No Guarantee of Interests. The Board and the Company do not guarantee the Shares (as defined in the Plan) from loss or depreciation.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its officers thereunto duly authorized, and the Director has set his hand effective as of the date and year first above written.

HOLLY CORPORATION

By:

Director

EX-10.2 3 d19809exv10w2.htm FORM OF EXECUTIVE RESTRICTED STOCK AGREEMENT (TWO-YEAR TERM VESTING FORM) exv10w2

Exhibit 10.2

[TWO-YEAR TERM VESTING FORM]

HOLLY CORPORATION
EXECUTIVE
RESTRICTED STOCK AGREEMENT

This Restricted Stock Agreement (the “Agreement”) is made and entered into by and between HOLLY CORPORATION, a Delaware corporation (the “Company”), and (the “Executive”). If the Executive presently is or subsequently becomes employed by a subsidiary of the Company, the term “Company” shall be deemed to refer collectively to the Company and the subsidiary or subsidiaries which employ the Executive. This Agreement is entered into as of the day of , (the “Date of Grant”).

WITNESSETH:

WHEREAS, the Company has adopted the HOLLY CORPORATION LONG-TERM INCENTIVE COMPENSATION PLAN (the “Plan”) to attract, retain and motivate Executives, directors and consultants; and

WHEREAS, the Company believes that entering into this Agreement with the Executive is consistent with the stated purposes for which the Plan was adopted.

NOW, THEREFORE, it is agreed by and between the Company and the Executive, in consideration of services rendered by the Executive, as follows:

1. Grant. The Company hereby grants to the Executive as of the Date of Grant an award of Shares (as defined in the Plan), subject to the terms and conditions set forth in this Agreement, including, without limitation, those described in Section 5 (the “Restricted Shares”).

2. Restricted Shares. The Company shall issue in the Executive’s name the Restricted Shares and such Restricted Shares shall be held for the Executive in book entry form by the Company’s transfer agent with a notation that the shares are subject to restrictions. The Executive hereby agrees that the Restricted Shares shall be held subject to restrictions as provided in the Agreement until such time as the Restricted Shares become Vested Shares (as defined in Section 4 below). The Executive hereby agrees that if part or all of the Restricted Shares are forfeited pursuant to this Agreement, the Company shall have the right to direct the Company’s transfer agent to cancel such forfeited Restricted Shares or, at the Company’s election, transfer such Restricted Shares to the Company or to any designee of the Company.

3. Rights of Executive. Effective as of the Date of Grant, the Executive is a stockholder with respect to all of the Restricted Shares granted to him pursuant to Section 1 and has all of the rights of a stockholder with respect to all such Restricted Shares, including the right to vote such Restricted Shares and the right to receive all

dividends and other distributions paid with respect to such Restricted Shares; provided, however, that such Restricted Shares shall be subject to the restrictions hereinafter described, including, without limitation, those described in Section 5.

4. Forfeiture and Expiration of Restrictions.

(b) In the event of the Executive’s (i) death, (ii) total and permanent disability as determined by the Long-Term Incentive Compensation Plan Committee (the “Committee”) in its sole discretion, or (iii) retirement after attaining the normal retirement age of 62 or retirement after attaining an earlier retirement age approved by the Committee, in its sole discretion, before lapse of all restrictions pursuant to Section 4(a) above, the Executive shall forfeit a number of Restricted Shares equal to the number of Restricted Shares specified in Section 1 times the percentage that the period of full months beginning on the first day of the calendar month following the date of death, disability or retirement and ending on , bears to twenty-four (24) and any remaining Restricted Shares that are not vested shall become Vested Shares; provided, however, that any fractional shares will be forfeited to the Company. In its sole discretion, the Committee may decide to vest all of the Restricted Shares in-lieu of the prorated number of Restricted Shares as provided in this Section 4(b). Unless the Committee determines otherwise, in its sole discretion, the Executive or the Executive’s beneficiary or estate will have no right to any Restricted Shares that remain subject to restrictions, and those Restricted Shares will be forfeited.

(c) In the event of a “Special Involuntary Termination” as defined in Section 4(d)(vi) before lapse of all restrictions pursuant to Section 4(a) above, all restrictions described in Section 5 shall lapse and the Restricted Shares will become Vested Shares and the Company shall deliver the Vested Shares to the Executive as soon as practicable thereafter.

(d) Definitions. For purposes of Section 4(c) above,

(i) “Change in Control” shall mean:

A. Any “Person” (as defined in Section 4(d)(ii) below), other than (1) the Company or any of its subsidiaries, (2) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its “Affiliates” (as defined in Section 4(d)(v) below), (3) an underwriter temporarily holding securities pursuant to an offering of such securities, or (4) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, is or becomes the “Beneficial Owner” (as defined in Section 4(d)(iii) below), directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such person any securities acquired directly from the Company or its Affiliates) representing more than forty percent (40%) of the combined voting power of the Company’s then outstanding securities, or more than forty percent (40%) of the then outstanding common stock of the Company, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in Section 4(d)(i)(C)(I) below.

B. The individuals who as of the Date of Grant constitute the Board of Directors of the Company and any “New Director” (as defined in Section 4(d)(iv) below) cease for any reason to constitute a majority of the Board of Directors.

C. There is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation, except if:

(I) the merger or consolidation results in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least sixty percent (60%) of the combined voting power of the voting securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation; or

(II) the merger or consolidation is effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly, or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates other than in connection with the acquisition by the Company or its Affiliates of a

business) representing more than forty percent (40%) of the combined voting power of the Company’s then outstanding securities.

D. The stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity at least sixty percent (60%) of the combined voting power of the voting securities of which is owned by the stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.

(ii) “Person” shall have the meaning given in section 3(a)(9) of the Securities Exchange Act of 1934 (the “1934 Act”) as modified and used in sections 13(d) and 14(d) of the 1934 Act.

(iii) “Beneficial Owner” shall have the meaning provided in Rule 13d-3 under the 1934 Act.

(iv) “New Director” shall mean an individual whose election by the Company’s Board of Directors or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the Date of Grant or whose election or nomination for election was previously so approved or recommended. However, “New Director” shall not include a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation relating to the election of directors of the Company.

(v) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under section 12 of the 1934 Act.

(vi) “Special Involuntary Termination” shall mean the occurrence of (1) or (2) below within sixty (60) days prior to, or at any time after, a “Change in Control” (as defined in Section 4(d)(i)), where (1) is termination of the Executive’s employment with the Company (including subsidiaries of the Company) by the Company for any reason other than “Cause” (as defined in Section 4(d)(vii)) and (2) is a resignation by the Executive from employment with the Company (including subsidiaries of the Company) within ninety (90) days after an “Adverse Change” (as defined in Section 4(d)(viii)) by the Company (including subsidiaries of the Company) in the terms of the Executive’s employment.

(vii) “Cause” shall mean:

A. An act or acts of dishonesty on the part of the Executive constituting a felony or serious misdemeanor and resulting or intended to result directly in gain or personal enrichment at the expense of the Company;

B. Gross or willful and wanton negligence in the performance of the Executive’s material and substantial duties of employment with the Company; or

C. Conviction of a felony involving moral turpitude.

The existence of Cause shall be determined by the Committee, in its sole and absolute discretion.

(viii) “Adverse Change” shall mean (A) a change in the city in which the Executive is required to work regularly, (B) a substantial increase in travel requirements of employment, (C) a substantial reduction in duties of the type previously performed by the Executive, or (D) a significant reduction in compensation or benefits (other than bonuses and other discretionary items of compensation) that does not apply generally to executives of the Company or its successor.

5. Limitations on Transfer. The Executive agrees that he shall not dispose of (meaning, without limitation, sell, transfer, pledge, exchange, hypothecate or otherwise dispose of) any Restricted Shares hereby acquired prior to the expiration of the relevant restrictions imposed by this Section 5 which expiration shall be determined pursuant to Section 4 of this Agreement. Any attempted disposition of the Restricted Shares in violation of the preceding sentence shall be null and void, and the Company shall not recognize or give effect to such transfer on its books and records or recognize the person or persons to whom such proposed transfer has been made as the legal or beneficial holder thereof. Notwithstanding the foregoing, part or all of the Restricted Shares or rights under this Agreement may be transferred to a spouse pursuant to a domestic relations order issued by a court of competent jurisdiction; provided, however, such Restricted Shares shall continue to be held pursuant to Section 2 of this Agreement, and the transferee under the domestic relations order shall agree that the Restricted Shares so transferred shall continue to be subject to the terms of this Agreement, including forfeiture in accordance with Section 4(a) of this Agreement and pro rata forfeiture in accordance with Sections 4(a) and (b) of this Agreement.

6. Nontransferability of Agreement. This Agreement and all rights under this Agreement shall not be transferable by the Executive during his life other than by will or pursuant to applicable laws of descent and distribution. Any rights and privileges of the Executive in connection herewith shall not be transferred, assigned, pledged or hypothecated by the Executive or by any other person or persons, in any way, whether by operation of law, or otherwise, and shall not be subject to execution, attachment, garnishment or similar process. In the event of any such occurrence, this Agreement shall automatically be terminated and shall thereafter be null and void. Notwithstanding

the foregoing, all or some of the Restricted Shares or rights under this Agreement may be transferred to a spouse pursuant to a domestic relations order issued by a court of competent jurisdiction, subject to the limitations on such transfer described in Section 5.

7. Adjustment of Restricted Shares. The number of Restricted Shares granted to the Executive pursuant to this Agreement shall be adjusted to reflect stock dividends, stock splits or other changes in the capital structure of the Company, all in accordance with the Plan. All provisions of this Agreement shall be applicable to such new or additional or different shares or securities distributed or issued pursuant to the Plan to the same extent that such provisions are applicable to the shares with respect to which they were distributed or issued. In the event that the outstanding Shares (as defined in the Plan) of the Company are exchanged for a different number or kind of shares or other securities, or if additional, new or different shares are distributed with respect to the Shares (as defined in the Plan) through merger, consolidation, or sale of all or substantially all of the assets of the Company, each remaining share subject to this Agreement shall have substituted for it a like number and kind of shares of new or replacement securities as determined in the sole discretion of the Committee, subject to the terms and provisions of the Plan.

liability of the Executive has been fully paid. In the event that the Executive fails to make arrangements that are acceptable to the Committee for providing to the Company, at the time or times required, the amounts of federal, state and local taxes required to be withheld with respect to the Restricted Shares granted to the Executive under this Agreement, the Company shall have the right to purchase at current market price as determined by the Committee and/or to sell to one or more third parties in either market or private transactions sufficient Vested Shares to provide the funds needed for the Company to make the required tax payment or payments.

11. Definitions; Copy of Plan. To the extent not specifically provided herein, all terms used in this Agreement shall have the same meanings ascribed to them in the Plan. By the execution of this Agreement, the Executive acknowledges receipt of a copy of the Plan. If any provision of this Agreement is held to be illegal, invalid or unenforceable under any applicable law, then such provision will be deemed to be modified to the minimum extent necessary to render it legal, valid and enforceable; and if such provision cannot be so modified, then this Agreement will be construed as if not containing the provision held to be invalid, and the rights and obligations of the parties will be construed and enforced accordingly.

12. Administration. This Agreement shall at all times be subject to the terms and conditions of the Plan. The Committee shall have sole and complete discretion with respect to all matters reserved to it by the Plan and decisions of a majority of the Committee with respect thereto and this Agreement shall be final and binding upon the Executive and the Company. In the event of any conflict between the terms and conditions of this Agreement and the Plan, the provisions of the Plan shall control.

13. No Right to Continued Employment. This Agreement shall not be construed to confer upon the Executive any right to continue as an Executive of the Company and shall not limit the right of the Company, in its sole discretion, to terminate the service of the Executive at any time.

14. Governing Law. This Agreement shall be interpreted and administered under the laws of the State of Texas, without giving effect to any conflict of laws provisions.

15. Amendments. This Agreement may be amended only by a written agreement executed by the Company and the Executive. Any such amendment shall be made only upon the mutual consent of the parties, which consent (of either party) may be withheld for any reason.

16. No Liability for Good Faith Determinations. The Company and the members of the Committee and the Board shall not be liable for any act, omission or determination taken or made in good faith with respect to this Agreement or the Restricted Shares granted hereunder.

17. No Guarantee of Interests. The Board and the Company do not guarantee the Shares (as defined in the Plan) from loss or depreciation.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its officers thereunto duly authorized, and the Executive has set his hand effective as of the date and year first above written.


		HOLLY CORPORATION

		By:




		Executive

EX-10.3 4 d19809exv10w3.htm FORM OF EXECUTIVE RESTRICTED STOCK AGREEMENT (TWO-YEAR TERM AND PERFORMANCE VESTING FORM) exv10w3

Exhibit 10.3

[TWO-YEAR TERM AND PERFORMANCE VESTING FORM]

HOLLY CORPORATION
EXECUTIVE
RESTRICTED STOCK AGREEMENT

W I T N E S S E T H:

WHEREAS, the Company has adopted the HOLLY CORPORATION LONG-TERM INCENTIVE COMPENSATION PLAN (the “Plan”) to attract, retain and motivate Executives, directors and consultants; and

WHEREAS, the Company believes that entering into this Agreement with the Executive is consistent with the stated purposes for which the Plan was adopted.

NOW, THEREFORE, it is agreed by and between the Company and the Executive, in consideration of services rendered by the Executive, as follows:

however, that such Restricted Shares shall be subject to the restrictions hereinafter described, including, without limitation, those described in Section 5.

4. Forfeiture and Expiration of Restrictions.

(a) The Executive shall forfeit to the Company (i) all of the Restricted Shares immediately and without any payment to the Executive whatsoever if the Executive’s employment with the Company or a subsidiary of the Company is terminated before , for any reason other than death, total and permanent disability, or retirement, as provided in Section 4(b) below, and (ii)one-half (1/2) of the Restricted Shares if the Executive’s employment with the Company or a subsidiary of the Company is so terminated after , and before , . After , , one-half (1/2) of the Restricted Shares (the “ Shares”) will be fully vested if (A) the Executive meets the Employment Requirement (as defined below) on , and (B) the Company achieves the Performance Standard (as defined below) for a quarter in the period beginning , and ending , . If the Performance Standard is not achieved for a quarter in the period beginning , and ending , the Shares shall be forfeited. The remaining one-half of the Restricted Shares (the “ Shares”) will be fully vested if (A) the Executive meets the Employment Requirement on , and (B) the Company achieves the Performance Standard for a quarter in the period beginning , and ending , . If the Performance Standard is not achieved for a quarter in the period beginning , and ending , , the Shares shall be forfeited. If the Executive meets the applicable Employment Requirement, the Shares and/or Shares as the case may be will become vested on the date, if any, that the Long-Term Incentive Compensation Plan Committee (the “Committee”) certifies that the Company has met the Performance Standard applicable for the Shares and/or the Shares as the case may be. For purposes of this Agreement, the Employment Requirement means employment of the Executive by the Company or a subsidiary at the date specified. For purposes of this Agreement, the Performance Standard for any quarter is average Quarterly Adjusted Net Income (as defined below) per diluted share of not less than (computed taking into account the two-for-one stock split effective August 30, 2004) for the period that began on , and ends at the end of the quarter considered, computed as a simple average (which will include only a single quarter in the case of the quarter ending , ) of the Quarterly Adjusted Net Income per diluted share computed for each quarter in such period. Quarterly Adjusted Net Income means net income for a quarter, as reported by the Company in its filings with the Securities and Exchange Commission, adjusted to exclude the effects of recoveries or liabilities resulting from litigation and administrative proceedings involving the Company and its subsidiaries. Restricted Shares that become vested as provided above are hereafter referred to as “Vested Shares.”

(d) Definitions. For purposes of Section 4(c) above,

(i) “Change in Control” shall mean:

C. There is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation, except if:

(ii) “Person” shall have the meaning given in section 3(a)(9) of the Securities Exchange Act of 1934 (the “1934 Act”) as modified and used in sections 13(d) and 14(d) of the 1934 Act.

(iii) “Beneficial Owner” shall have the meaning provided in Rule 13d-3 under the 1934 Act.

(v) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under section 12 of the 1934 Act.

(vii) “Cause” shall mean:

B. Gross or willful and wanton negligence in the performance of the Executive’s material and substantial duties of employment with the Company; or

C. Conviction of a felony involving moral turpitude.

The existence of Cause shall be determined by the Committee, in its sole and absolute discretion.

other discretionary items of compensation) that does not apply generally to executives of the Company or its successor.

10. Federal and State Taxes. The Executive may incur certain liabilities for Federal, state or local taxes and the Company may be required by law to withhold such taxes for payment to taxing authorities. If the Executive makes the election permitted by section 83(b) of the Internal Revenue Code, the taxes shall be due and payable for the year in which this Agreement is executed. If the Executive does not make such election, the taxes shall be payable for the year in which the restrictions lapse pursuant to Section 4. Upon determination of the year in which such taxes are due and the determination by the Company of the amount of taxes required to be withheld, if any, the Executive shall either pay to the Company, in cash or by certified or cashier’s check, an amount equal to the taxes required to be paid on such transaction, or the Executive shall authorize the Company to withhold from monies owing by the Company to the Executive an amount equal to the amount of federal, state or local taxes required to be withheld. Authorization of the Executive to the Company to withhold taxes pursuant to this Section 10 shall be in form and content acceptable to the Committee. An authorization to withhold taxes pursuant to this provision shall be irrevocable unless and until the tax liability of the Executive has been fully paid. In the event that the Executive fails to make arrangements that are acceptable to the Committee for providing to the Company, at the time or times required, the amounts of federal, state and local taxes required to be withheld with respect to the Restricted Shares granted to the Executive under this Agreement, the Company shall have the right to purchase at current market price as determined by the Committee and/or to sell to one or more third parties in either market or private transactions sufficient Vested Shares to provide the funds needed for the Company to make the required tax payment or payments.

14. Governing Law. This Agreement shall be interpreted and administered under the laws of the State of Texas, without giving effect to any conflict of laws provisions.

17. No Guarantee of Interests. The Board and the Company do not guarantee the Shares (as defined in the Plan) from loss or depreciation.

EX-10.4 5 d19809exv10w4.htm FORM OF EXECUTIVE RESTRICTED STOCK AGREEMENT (FIVE-YEAR TERM VESTING FORM) exv10w4

Exhibit 10.4

[FIVE-YEAR TERM VESTING FORM]

HOLLY CORPORATION
EXECUTIVE
RESTRICTED STOCK AGREEMENT

W I T N E S S E T H:

WHEREAS, the Company has adopted the HOLLY CORPORATION LONG-TERM INCENTIVE COMPENSATION PLAN (the “Plan”) to attract, retain and motivate Executives, directors and consultants; and

WHEREAS, the Company believes that entering into this Agreement with the Executive is consistent with the stated purposes for which the Plan was adopted.

NOW, THEREFORE, it is agreed by and between the Company and the Executive, in consideration of services rendered by the Executive, as follows:

however, that such Restricted Shares shall be subject to the restrictions hereinafter described, including, without limitation, those described in Section 5.

4. Forfeiture and Expiration of Restrictions.

(b) In the event of the Executive’s (i) death, (ii) total and permanent disability as determined by the Long-Term Incentive Compensation Plan Committee (the “Committee”) in its sole discretion, or (iii) retirement after attaining the normal retirement age of 62 or retirement after attaining an earlier retirement age approved by the Committee, in its sole discretion, before lapse of all restrictions pursuant to Section 4(a) above, the Executive shall forfeit a number of Restricted Shares equal to the number of Restricted Shares specified in Section 1 times the percentage that the period of full months beginning on the first day of the calendar month following the date of death, disability or retirement and ending on , bears to sixty (60) and any remaining Restricted Shares that are not vested shall become Vested Shares; provided, however, that any fractional shares will be forfeited to the Company. In its sole discretion, the Committee may decide to vest all of the Restricted Shares in-lieu of the prorated number of Restricted Shares as provided in this Section 4(b). Unless the Committee determines otherwise, in its sole discretion, the Executive or the Executive’s beneficiary or estate will have no right to any Restricted Shares that remain subject to restrictions, and those Restricted Shares will be forfeited.

(d) Definitions. For purposes of Section 4(c) above,

(i) “Change in Control” shall mean:

C. There is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation, except if:

Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates other than in connection with the acquisition by the Company or its Affiliates of a business) representing more than forty percent (40%) of the combined voting power of the Company’s then outstanding securities.

(ii) “Person” shall have the meaning given in section 3(a)(9) of the Securities Exchange Act of 1934 (the “1934 Act”) as modified and used in sections 13(d) and 14(d) of the 1934 Act.

(iii) “Beneficial Owner” shall have the meaning provided in Rule 13d-3 under the 1934 Act.

(v) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under section 12 of the 1934 Act.

Change” (as defined in Section 4(d)(viii)) by the Company (including subsidiaries of the Company) in the terms of the Executive’s employment.

(vii) “Cause” shall mean:

B. Gross or willful and wanton negligence in the performance of the Executive’s material and substantial duties of employment with the Company; or

C. Conviction of a felony involving moral turpitude.

The existence of Cause shall be determined by the Committee, in its sole and absolute discretion.

hypothecated by the Executive or by any other person or persons, in any way, whether by operation of law, or otherwise, and shall not be subject to execution, attachment, garnishment or similar process. In the event of any such occurrence, this Agreement shall automatically be terminated and shall thereafter be null and void. Notwithstanding the foregoing, all or some of the Restricted Shares or rights under this Agreement may be transferred to a spouse pursuant to a domestic relations order issued by a court of competent jurisdiction, subject to the limitations on such transfer described in Section 5.

an amount equal to the amount of federal, state or local taxes required to be withheld. Authorization of the Executive to the Company to withhold taxes pursuant to this Section 10 shall be in form and content acceptable to the Committee. An authorization to withhold taxes pursuant to this provision shall be irrevocable unless and until the tax liability of the Executive has been fully paid. In the event that the Executive fails to make arrangements that are acceptable to the Committee for providing to the Company, at the time or times required, the amounts of federal, state and local taxes required to be withheld with respect to the Restricted Shares granted to the Executive under this Agreement, the Company shall have the right to purchase at current market price as determined by the Committee and/or to sell to one or more third parties in either market or private transactions sufficient Vested Shares to provide the funds needed for the Company to make the required tax payment or payments.

14. Governing Law. This Agreement shall be interpreted and administered under the laws of the State of Texas, without giving effect to any conflict of laws provisions.

17. No Guarantee of Interests. The Board and the Company do not guarantee the Shares (as defined in the Plan) from loss or depreciation.

EX-10.5 6 d19809exv10w5.htm FORM OF EXECUTIVE RESTRICTED STOCK AGREEMENT (FIVE-YEAR TERM AND PERFORMANCE VESTING FORM) exv10w5

Exhibit 10.5

[FIVE-YEAR TERM AND PERFORMANCE VESTING FORM]

HOLLY CORPORATION
EXECUTIVE
RESTRICTED STOCK AGREEMENT

WITNESSETH:

WHEREAS, the Company has adopted the HOLLY CORPORATION LONG-TERM INCENTIVE COMPENSATION PLAN (the “Plan”) to attract, retain and motivate Executives, directors and consultants; and

WHEREAS, the Company believes that entering into this Agreement with the Executive is consistent with the stated purposes for which the Plan was adopted.

NOW, THEREFORE, it is agreed by and between the Company and the Executive, in consideration of services rendered by the Executive, as follows:

however, that such Restricted Shares shall be subject to the restrictions hereinafter described, including, without limitation, those described in Section 5.

4. Forfeiture and Expiration of Restrictions.

(a) The Executive shall forfeit to the Company (i) all of the Restricted Shares immediately and without any payment to the Executive whatsoever if the Executive’s employment with the Company or a subsidiary of the Company is terminated before , for any reason other than death, total and permanent disability, or retirement, as provided in Section 4(b) below, and (ii) two-thirds (2/3) of the Restricted Shares if the Executive’s employment with the Company or a subsidiary of the Company is so terminated after , and before , , and (iii) one-third (1/3) of the Restricted Shares if the Executive’s employment with the Company or a subsidiary of the Company is so terminated after , and before , . After , , one-third (1/3) of the Restricted Shares (the “ Shares”) will be fully vested if (A) the Executive meets the Employment Requirement (as defined below) on , and (B) the Company achieves the Performance Standard (as defined below) for a quarter in the period beginning , and ending , . If the Performance Standard is not achieved for a quarter in the period beginning , and ending , , the Shares shall be forfeited. One-third of the Restricted Shares (the “ Shares”) will be fully vested if (A) the Executive meets the Employment Requirement on , and (B) the Company achieves the Performance Standard for a quarter in the period beginning , and ending , . If the Performance Standard is not achieved for a quarter in the period beginning , and ending , , the Shares shall be forfeited. One-third of the Restricted Shares (the “ Shares”) will be fully vested if (A) the Executive meets the Employment Requirement on , and (B) the Company achieves the Performance Standard for a quarter in the period beginning , and ending , . If the Performance Standard is not achieved for a quarter in the period beginning , and ending , , the Shares shall be forfeited. If the Executive meets the applicable Employment Requirement, the Shares, the Shares and/or the Shares as the case may be will become vested on the date, if any, that the Long-Term Incentive Compensation Plan Committee (the “Committee”) certifies that the Company has met the Performance Standard applicable for the Shares, the Shares and/or the Shares as the case may be. For purposes of this Agreement, the Employment Requirement means employment of the Executive by the Company or a subsidiary at the date specified. For purposes of this Agreement, the Performance Standard for any quarter is average Quarterly Adjusted Net Income (as defined below) per diluted share of not less than (computed taking into account the two-for-one stock split effective August 30, 2004) for the period that began on , and ends at the end of the quarter considered, computed as a simple average of the Quarterly Adjusted Net Income per diluted share computed for each quarter in such period. Quarterly Adjusted Net Income means net income for a quarter, as

reported by the Company in its filings with the Securities and Exchange Commission, adjusted to exclude the effects of recoveries or liabilities resulting from litigation and administrative proceedings involving the Company and its subsidiaries. Restricted Shares that become vested as provided above are hereafter referred to as “Vested Shares.”

(b) In the event of the Executive’s (i) death, (ii) total and permanent disability as determined by the Long-Term Incentive Compensation Plan Committee (the “Committee”) in its sole discretion, or (iii) retirement after attaining the normal retirement age of 62 or retirement after attaining an earlier retirement age approved by the Committee, in its sole discretion, before lapse of all restrictions pursuant to Section 4(a) above, the Executive shall forfeit a number of Restricted Shares equal to the number of Restricted Shares specified in Section 1 times the percentage that the period of full months beginning on the first day of the calendar month following the date of death, disability or retirement and ending on _, bears to sixty (60) and any remaining Restricted Shares that are not vested shall become Vested Shares; provided, however, that any fractional shares will be forfeited to the Company. In its sole discretion, the Committee may decide to vest all of the Restricted Shares in-lieu of the prorated number of Restricted Shares as provided in this Section 4(b). Unless the Committee determines otherwise, in its sole discretion, the Executive or the Executive’s beneficiary or estate will have no right to any Restricted Shares that remain subject to restrictions, and those Restricted Shares will be forfeited.

(d) Definitions. For purposes of Section 4(c) above,

(i) “Change in Control” shall mean:

more than forty percent (40%) of the combined voting power of the Company’s then outstanding securities, or more than forty percent (40%) of the then outstanding common stock of the Company, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in Section 4(d)(i)(C)(I) below.

C. There is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation, except if:

proportions as their ownership of the Company immediately prior to such sale.

(ii) “Person” shall have the meaning given in section 3(a)(9) of the Securities Exchange Act of 1934 (the “1934 Act”) as modified and used in sections 13(d) and 14(d) of the 1934 Act.

(iii) “Beneficial Owner” shall have the meaning provided in Rule 13d-3 under the 1934 Act.

(v) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under section 12 of the 1934 Act.

(vii) “Cause” shall mean:

B. Gross or willful and wanton negligence in the performance of the Executive’s material and substantial duties of employment with the Company; or

C. Conviction of a felony involving moral turpitude.

The existence of Cause shall be determined by the Committee, in its sole and absolute discretion.

4. Limitations on Transfer. The Executive agrees that he shall not dispose of (meaning, without limitation, sell, transfer, pledge, exchange, hypothecate or otherwise dispose of) any Restricted Shares hereby acquired prior to the expiration of the relevant restrictions imposed by this Section 5 which expiration shall be determined pursuant to Section 4 of this Agreement. Any attempted disposition of the Restricted Shares in violation of the preceding sentence shall be null and void, and the Company shall not recognize or give effect to such transfer on its books and records or recognize the person or persons to whom such proposed transfer has been made as the legal or beneficial holder thereof. Notwithstanding the foregoing, part or all of the Restricted Shares or rights under this Agreement may be transferred to a spouse pursuant to a domestic relations order issued by a court of competent jurisdiction; provided, however, such Restricted Shares shall continue to be held pursuant to Section 2 of this Agreement, and the transferee under the domestic relations order shall agree that the Restricted Shares so transferred shall continue to be subject to the terms of this Agreement, including forfeiture in accordance with Section 4(a) of this Agreement and pro rata forfeiture in accordance with Sections 4(a) and (b) of this Agreement.

5. Nontransferability of Agreement. This Agreement and all rights under this Agreement shall not be transferable by the Executive during his life other than by will or pursuant to applicable laws of descent and distribution. Any rights and privileges of the Executive in connection herewith shall not be transferred, assigned, pledged or hypothecated by the Executive or by any other person or persons, in any way, whether by operation of law, or otherwise, and shall not be subject to execution, attachment, garnishment or similar process. In the event of any such occurrence, this Agreement shall automatically be terminated and shall thereafter be null and void. Notwithstanding the foregoing, all or some of the Restricted Shares or rights under this Agreement may be transferred to a spouse pursuant to a domestic relations order issued by a court of competent jurisdiction, subject to the limitations on such transfer described in Section 5.

6. Adjustment of Restricted Shares. The number of Restricted Shares granted to the Executive pursuant to this Agreement shall be adjusted to reflect stock dividends, stock splits or other changes in the capital structure of the Company, all in accordance with the Plan. All provisions of this Agreement shall be applicable to such new or additional or different shares or securities distributed or issued pursuant to the Plan to the same extent that such provisions are applicable to the shares with respect to which they were distributed or issued. In the event that the outstanding Shares (as

defined in the Plan) of the Company are exchanged for a different number or kind of shares or other securities, or if additional, new or different shares are distributed with respect to the Shares (as defined in the Plan) through merger, consolidation, or sale of all or substantially all of the assets of the Company, each remaining share subject to this Agreement shall have substituted for it a like number and kind of shares of new or replacement securities as determined in the sole discretion of the Committee, subject to the terms and provisions of the Plan.

7. Delivery of Vested Shares. No Vested Shares shall be delivered pursuant to this Agreement until the approval of any governmental authority required in connection with this Agreement, or the issuance of Vested Shares hereunder, has been received by the Company. The Committee will delay delivery of Vested Shares until the restrictions of Section 5 lapse.

8. Securities Act. The Company shall have the right, but not the obligation, to cause the Restricted Shares to be registered under the appropriate rules and regulations of the Securities and Exchange Commission. The Company shall not be required to deliver any Vested Shares of stock hereunder if, in the opinion of counsel for the Company, such delivery would violate the Securities Act of 1933 or any other applicable federal or state securities laws or regulations.

9. Federal and State Taxes. The Executive may incur certain liabilities for Federal, state or local taxes and the Company may be required by law to withhold such taxes for payment to taxing authorities. If the Executive makes the election permitted by section 83(b) of the Internal Revenue Code, the taxes shall be due and payable for the year in which this Agreement is executed. If the Executive does not make such election, the taxes shall be payable for the year in which the restrictions lapse pursuant to Section 4. Upon determination of the year in which such taxes are due and the determination by the Company of the amount of taxes required to be withheld, if any, the Executive shall either pay to the Company, in cash or by certified or cashier’s check, an amount equal to the taxes required to be paid on such transaction, or the Executive shall authorize the Company to withhold from monies owing by the Company to the Executive an amount equal to the amount of federal, state or local taxes required to be withheld. Authorization of the Executive to the Company to withhold taxes pursuant to this Section 10 shall be in form and content acceptable to the Committee. An authorization to withhold taxes pursuant to this provision shall be irrevocable unless and until the tax liability of the Executive has been fully paid. In the event that the Executive fails to make arrangements that are acceptable to the Committee for providing to the Company, at the time or times required, the amounts of federal, state and local taxes required to be withheld with respect to the Restricted Shares granted to the Executive under this Agreement, the Company shall have the right to purchase at current market price as determined by the Committee and/or to sell to one or more third parties in either market or private transactions sufficient Vested Shares to provide the funds needed for the Company to make the required tax payment or payments.

10. Definitions; Copy of Plan. To the extent not specifically provided herein, all terms used in this Agreement shall have the same meanings ascribed to them in the

Plan. By the execution of this Agreement, the Executive acknowledges receipt of a copy of the Plan. If any provision of this Agreement is held to be illegal, invalid or unenforceable under any applicable law, then such provision will be deemed to be modified to the minimum extent necessary to render it legal, valid and enforceable; and if such provision cannot be so modified, then this Agreement will be construed as if not containing the provision held to be invalid, and the rights and obligations of the parties will be construed and enforced accordingly.

11. Administration. This Agreement shall at all times be subject to the terms and conditions of the Plan. The Committee shall have sole and complete discretion with respect to all matters reserved to it by the Plan and decisions of a majority of the Committee with respect thereto and this Agreement shall be final and binding upon the Executive and the Company. In the event of any conflict between the terms and conditions of this Agreement and the Plan, the provisions of the Plan shall control.

12. No Right to Continued Employment. This Agreement shall not be construed to confer upon the Executive any right to continue as an Executive of the Company and shall not limit the right of the Company, in its sole discretion, to terminate the service of the Executive at any time.

13. Governing Law. This Agreement shall be interpreted and administered under the laws of the State of Texas, without giving effect to any conflict of laws provisions.

14. Amendments. This Agreement may be amended only by a written agreement executed by the Company and the Executive. Any such amendment shall be made only upon the mutual consent of the parties, which consent (of either party) may be withheld for any reason.

16. No Guarantee of Interests. The Board and the Company do not guarantee the Shares (as defined in the Plan) from loss or depreciation.

EX-10.6 7 d19809exv10w6.htm FORM OF PERFORMANCE SHARE UNIT AGREEMENT (ONE-YEAR FORM) exv10w6

Exhibit 10.6

[ONE-YEAR FORM]

HOLLY CORPORATION
PERFORMANCE SHARE UNIT AGREEMENT

This Performance Share Unit Agreement (the “Agreement”) is made and entered into by and between HOLLY CORPORATION, a Delaware corporation (the “Company”), and (the “Employee”). If the Employee presently is or subsequently becomes employed by a subsidiary of the Company, the term “Company” shall be deemed to refer collectively to the Company and the subsidiary or subsidiaries which employ the Employee. This Agreement is entered into as of the day of , (the “Date of Grant”).

W I T N E S S E T H:

WHEREAS, the Company has adopted the HOLLY CORPORATION LONG-TERM INCENTIVE COMPENSATION PLAN (the “Plan”) to attract, retain and motivate employees, directors and consultants; and

WHEREAS, the Long-Term Incentive Compensation Plan Committee (the “Committee”) believes that entering into this Agreement with the Employee is consistent with the stated purposes for which the Plan was adopted.

NOW, THEREFORE, in consideration of the services rendered by the Employee, it is agreed by and between the Company and the Employee, as follows:

1. Grant. The Company hereby grants as of the Date of Grant a Performance Award (as defined in the Plan) of performance share units (the “Units”), subject to the terms and conditions set forth in this Agreement. Depending upon the Company’s performance, the Employee may earn from percent ( %) to percent ( %) of the Units, based on the total shareholder return (“TSR”) of the Company’s common stock, par value $.01 per share (the “Shares”), as compared to the TSR of a peer group of companies as provided in Section 2.

2. Nature of Award. The Units represent an award for the “Performance Period” described in this Section 2. The Performance Period begins on , and ends on , . At the end of the Performance Period, the Employee shall be entitled to a cash payment equal to the value of the Units as determined under this Section 2 and payable at the time indicated in Section 4 or Section 3(b), as applicable. At the end of the Performance Period, the amount paid with respect to the Units will be based upon the TSR of the Company compared to the TSR of a select group of peer companies designated by the Committee for performance measurement purposes (the “Peer Group”). TSR includes both appreciation in share price during the Performance Period and the assumed reinvestment of any dividends declared into additional Shares at the time dividends are paid. The Share price for the TSR calculation of the Company shall be the average Share price for the final thirty- (30-) day trading period of the Performance Period (the “Share Price”). The amount payable to the Employee pursuant

to the Agreement shall be an amount equal to the number of Units (as specified in Section 1 and after any applicable adjustment under Section 3) multiplied by a “Performance Percentage” (which will be based upon the Company’s TSR ranking as compared to the ranking of the Peer Group) multiplied by the Share Price. The Performance Percentage will be determined in accordance with the following “Performance Schedule.”

Performance Schedule

Performance Percentage (%)
to be Multiplied by Units
Based Upon the Company’s TSR as Compared to the Peer Group


The Company's TSR as Compared to		Performance Percentage (%) to be
the Peer Group TSR – Percentile Ranking		Multiplied by Units
	Percentile or Less	%
	– Percentile	%
	– Percentile	%
	– Percentile	%
	– Percentile	%
	Percentile and Higher	%

3. Early Termination. In the event of separation from employment of the Employee prior to the end of the Performance Period on account of an event described in this Section 3, the number of Units with respect to which payment at the end of the Performance Period is based shall be determined as follows:

(a) (i) In the event that the Employee separates from employment for any reason other than voluntary separation or Cause, as defined in Section 3(c)(vii), or (ii) in the event of the Employee’s death or (iii) in the event of the Employee’s total and permanent disability as determined by the Committee in its sole discretion, or (iv) in the event that the Employee shall retire after attaining normal retirement age of 62 or after attaining an earlier retirement age approved by the Committee in its sole discretion, the number of Units that shall be earned by and paid to the Employee or his beneficiary, in accordance with and at the time specified in Section 4, shall be determined as follows: the Employee shall forfeit a percentage of the Units equal to the percentage that the number of full months following the date of separation, death, disability or retirement to the end of the Performance Period bears to the number of full months in the Performance Period. The Committee shall determine the number of Units earned and the amount to be paid to the Employee or his beneficiary as soon as administratively practicable after the end of the Performance Period based upon the TSR calculation determined pursuant to Section 2 for the entire Performance Period. In its sole discretion, the Committee may make a payment to the

Employee assuming a Performance Percentage of up to percent ( %) of the Units instead of the pro-rata number of Units as determined pursuant to this Section 3(a). Unless the Committee determines otherwise, the Employee will have no right to any other Units and those other Units granted under this Agreement will be forfeited. If the Employee separates from employment prior to the end of the Performance Period due to voluntary separation or on account of Cause, all Units hereunder will be forfeited.

(b) In the event of a Special Involuntary Termination, as defined in Section 3(c)(vi), before the end of the Performance Period, no Units shall be forfeited, and payment with respect to percent ( %) of the Units shall be made as soon as administratively practicable following the Special Involuntary Termination. In the event of a Special Involuntary Termination, the amount payable with respect to this Agreement will equal the number of Units granted pursuant to Section 1, multiplied by the Share Price, and multiplied by a Performance Percentage of percent ( %); provided, however, the Share Price shall be calculated using the average Share price for the thirty- (30-) day trading period preceding the date of the Special Involuntary Termination. Payment pursuant to this Section 3(b) is in-lieu of payment pursuant to Section 3(a) and if the Employee receives payment pursuant to this Section 3(b) the Employee will not be entitled to any payment pursuant to Section 3(a).

(i) “Change in Control” shall mean:

A. Any “Person” (as defined in Section 3(c)(ii) below), other than (1) the Company or any of its subsidiaries, (2) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its “Affiliates” (as defined in Section 3(c)(v) below), (3) an underwriter temporarily holding securities pursuant to an offering of such securities, or (4) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company, is or becomes the “Beneficial Owner” (as defined in Section 3(c)(iii) below), directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such person any securities acquired directly from the Company or its Affiliates) representing more than forty percent (40%) of the combined voting power of the Company’s then outstanding securities, or more than forty percent (40%) of the then outstanding common stock of the Company, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in Section 3(c)(i)(C)(I) below.

B. The individuals who as of the Date of Grant constitute the Board of Directors of the Company and any “New Director” (as defined in Section 3(c)(iv) below) cease for any reason to constitute a majority of the Board of Directors.

C. There is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation, except if:

D. The shareholders of the Company approve a plan of complete liquidation or dissolution of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity at least sixty percent (60%) of the combined voting power of the voting securities of which is owned by the stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.

(ii) “Person” shall have the meaning given in section 3(a)(9) of the Securities Exchange Act of 1934 (the “1934 Act”) as modified and used in sections 13(d) and 14(d) of the 1934 Act.

(iii) “Beneficial Owner” shall have the meaning provided in Rule 13d-3 under the 1934 Act.

(iv) “New Director” shall mean an individual whose election by the Company’s Board of Directors or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the Date of Grant or whose election or nomination for election was previously so approved or recommended. However, “New Director” shall not include a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation relating to the election of directors of the Company.

(v) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under section 12 of the 1934 Act.

(vi) “Special Involuntary Termination” shall mean the occurrence of (1) or (2) within sixty (60) days prior to, or at any time after, a “Change in Control” (as defined in Section 3(c)(i)), where (1) is termination of the Employee’s employment with the Company (including subsidiaries of the Company) by the Company for any reason other than “Cause” (as defined in Section 3(c)(vii)) and (2) is a resignation by the Employee from employment with the Company (including subsidiaries of the Company) within ninety (90) days after an “Adverse Change” (as defined in Section 3(c)(viii)) by the Company (including subsidiaries of the Company) in the terms of the Employee’s employment.

(vii) “Cause” shall mean:

A. An act or acts of dishonesty on the part of the Employee constituting a felony or serious misdemeanor and resulting or intended to result directly in gain or personal enrichment at the expense of the Company;

B. Gross or willful and wanton negligence in the performance of the Employee’s material and substantial duties of employment with the Company; or

C. Conviction of a felony involving moral turpitude.

The existence of Cause shall be determined by the Committee, in its sole and absolute discretion.

(viii) “Adverse Change” shall mean (A) a change in the city in which the Employee is required to work regularly, (B) a substantial increase in travel requirements of employment, (C) a substantial reduction in duties of the type previously performed by the Employee, or (D) a significant reduction in compensation or benefits (other than bonuses and

other discretionary items of compensation) that does not apply generally to executives of the Company or its successor.

4. Payment of Units. The value of the Units earned shall be converted to a fully equivalent cash value at the end of the Performance Period (or such earlier time as specified under Section 3(b)) and shall be payable in cash as soon as reasonably practicable following the close of the Performance Period (or such earlier time as specified under Section 3(b)) in the amount determined in accordance with Section 2, as adjusted by Section 3, if applicable. Such cash payment will be subject to withholding for taxes and other applicable payroll adjustments. The Committee’s determination of the amount payable shall be binding upon the Employee and his beneficiary or estate.

5. Adjustment in Number of Units. Except as provided below, in the event that the outstanding Shares of the Company are increased, decreased or exchanged for a different number of kind of shares or other securities, or if additional, new or different shares or securities are distributed with respect to the Shares through merger, consolidation, sale of all or substantially all of the assets of the Company, reorganization, recapitalization, stock dividend, stock split, reverse stock split or other distribution with respect to such Shares, the number of Units subject to this Agreement shall be adjusted, in the sole discretion of the Committee, to reflect the change in outstanding Shares, and, to the extent Shares are replaced or exchanged for different securities, the Committee shall, in its sole discretion, cause the Units to be valued in accordance with Sections 2 and 3 of this Agreement, but with respect to such new securities.

6. Definitions; Copy of Plan. To the extent not specifically provided herein, all terms used in this Agreement shall have the same meanings ascribed to them in the Plan. By the execution of this Agreement, the Employee acknowledges receipt of a copy of the Plan. If any provision of this Agreement is held to be illegal, invalid or unenforceable under any applicable law, then such provision will be deemed to be modified to the minimum extent necessary to render it legal, valid and enforceable; and if such provision cannot be so modified, then this Agreement will be construed as if not containing the provision held to be invalid, and the rights and obligations of the parties will be construed and enforced accordingly.

7. Administration. This Agreement shall at all times be subject to the terms and conditions of the Plan. The Committee shall have sole and complete discretion with respect to all matters reserved to it by the Plan and decisions of the majority of the Committee with respect thereto and this Agreement shall be final and binding upon the Employee and the Company. In the event of any conflict between the terms and conditions of this Agreement and the Plan, the provisions of the Plan shall control.

8. No Right to Continued Employment. This Agreement shall not be construed to confer upon the Employee any right to continue as an Employee of the Company and shall not limit the right of the Company, in its sole discretion, to terminate the service of the Employee at any time.

9. Governing Law. This Agreement shall be interpreted and administered under the laws of the State of Texas, without giving effect to any conflict of laws provisions.

10. Amendments. This Agreement may be amended only by a written agreement executed by the Company and the Employee. Any such amendment shall be made only upon the mutual consent of the parties, which consent (of either party) may be withheld for any reason.

11. No Liability for Good Faith Determinations. The Company and the members of the Committee and the Board shall not be liable for any act, omission or determination taken or made in good faith with respect to this Agreement or the Units granted hereunder.

12. No Guarantee of Interests. The Board and the Company do not guarantee the Shares (as defined in the Plan) from loss or depreciation.

13. Nontransferability. This Agreement and all rights under this Agreement shall not be transferable by the Employee during his life other than by will or pursuant to applicable laws of descent and distribution. Any rights and privileges of the Employee in connection herewith shall not be transferred, assigned, pledged or hypothecated by the Employee or by any other person or persons, in any way, whether by operation of law, or otherwise, and shall not be subject to execution, attachment, garnishment or similar process. In the event of any such occurrence, this Agreement shall automatically be terminated and shall thereafter be null and void. Notwithstanding the foregoing, all or some of the Units or rights under this Agreement may be transferred to a spouse pursuant to a domestic relations order issued by a court of competent jurisdiction.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its officers thereunto duly authorized, and the Employee has set his hand effective as of the date and year first above written.


		HOLLY CORPORATION

		By:




		Employee

EX-10.7 8 d19809exv10w7.htm FORM OF PERFORMANCE SHARE UNIT AGREEMENT (THREE-YEAR FORM) exv10w7

Exhibit 10.7

[THREE-YEAR FORM]

HOLLY CORPORATION
PERFORMANCE SHARE UNIT AGREEMENT

WITNESSETH:

WHEREAS, the Company has adopted the HOLLY CORPORATION LONG-TERM INCENTIVE COMPENSATION PLAN (the “Plan”) to attract, retain and motivate employees, directors and consultants; and

NOW, THEREFORE, in consideration of the services rendered by the Employee, it is agreed by and between the Company and the Employee, as follows:

Employee pursuant to the Agreement shall be an amount equal to the number of Units (as specified in Section 1 and after any applicable adjustment under Section 3) multiplied by a “Performance Percentage” (which will be based upon the Company’s TSR ranking as compared to the ranking of the Peer Group) multiplied by the Share Price. The Performance Percentage will be determined in accordance with the following “Performance Schedule.”

Performance Schedule

Performance Percentage (%)
to be Multiplied by Units
Based Upon the Company’s TSR as Compared to the Peer Group


The Company's TSR as Compared to	Performance Percentage (%) to be
the Peer Group TSR – Percentile Ranking	Multiplied by Units
Percentile or Less		%
– Percentile		%
– Percentile		%
– Percentile		%
– Percentile		%
Percentile and Higher		%

(a) (i) In the event that the Employee separates from employment for any reason other than voluntary separation or Cause, as defined in Section 3(c)(vii), or (ii) in the event of the Employee’s death or (iii) in the event of the Employee’s total and permanent disability as determined by the Committee in its sole discretion, or (iv) in the event that the Employee shall retire after attaining normal retirement age of 62 or after attaining an earlier retirement age approved by the Committee in its sole discretion, the number of Units that shall be earned by and paid to the Employee or his beneficiary, in accordance with and at the time specified in Section 4, shall be determined as follows: the Employee shall forfeit a percentage of the Units equal to the percentage that the number of full months following the date of separation, death, disability or retirement to the end of the Performance Period bears to thirty-six (36). The Committee shall determine the number of Units earned and the amount to be paid to the Employee or his beneficiary as soon as administratively practicable after the end of the Performance Period based upon the TSR calculation determined pursuant to Section 2 for the entire Performance Period. In its sole discretion, the Committee may make a payment to the Employee assuming a Performance Percentage of up to percent ( %) of the Units instead of the pro-rata number of Units as determined pursuant to this Section 3(a). Unless the Committee

determines otherwise, the Employee will have no right to any other Units and those other Units granted under this Agreement will be forfeited. If the Employee separates from employment prior to the end of the Performance Period due to voluntary separation or on account of Cause, all Units hereunder will be forfeited.

(i) “Change in Control” shall mean:

C. There is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation, except if:

(ii) “Person” shall have the meaning given in section 3(a)(9) of the Securities Exchange Act of 1934 (the “1934 Act”) as modified and used in sections 13(d) and 14(d) of the 1934 Act.

(iii) “Beneficial Owner” shall have the meaning provided in Rule 13d-3 under the 1934 Act.

(2/3) of the directors then still in office who either were directors at the Date of Grant or whose election or nomination for election was previously so approved or recommended. However, “New Director” shall not include a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation relating to the election of directors of the Company.

(v) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under section 12 of the 1934 Act.

(vii) “Cause” shall mean:

B. Gross or willful and wanton negligence in the performance of the Employee’s material and substantial duties of employment with the Company; or

C. Conviction of a felony involving moral turpitude.

The existence of Cause shall be determined by the Committee, in its sole and absolute discretion.

practicable following the close of the Performance Period (or such earlier time as specified under Section 3(b)) in the amount determined in accordance with Section 2, as adjusted by Section 3, if applicable. Such cash payment will be subject to withholding for taxes and other applicable payroll adjustments. The Committee’s determination of the amount payable shall be binding upon the Employee and his beneficiary or estate.

9. Governing Law. This Agreement shall be interpreted and administered under the laws of the State of Texas, without giving effect to any conflict of laws provisions.

10. Amendments. This Agreement may be amended only by a written agreement executed by the Company and the Employee. Any such amendment shall be

made only upon the mutual consent of the parties, which consent (of either party) may be withheld for any reason.

12. No Guarantee of Interests. The Board and the Company do not guarantee the Shares (as defined in the Plan) from loss or depreciation.

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	HOLLY CORPORATION
	By:	/s/ Stephen J. McDonnell
		Stephen J. McDonnell
Date: November 4, 2004		Vice President and Chief Financial Officer