Common use of Exercise of Over-allotment Option Clause in Contracts

Exercise of Over-allotment Option. If the Over-Allotment Option is exercised in whole or in part, the Underwriters will contribute additional cash to the Partnership in exchange for Option Units on the basis of the Offering price per Common Unit set forth in the Registration Statement, net of underwriting discounts and the Structuring Fee. The Partnership hereby agrees to redeem a number of Common Units from Tesoro, TRMC and Tesoro Alaska, in a proportionate amount to their respective ownership percentages of Common Units immediately prior to the exercise of the Over-Allotment Option, equal to the number of Option Units sold by the Partnership pursuant to the exercise of the Over-Allotment Option on the basis of the Offering price per Common Unit set forth in the Registration Statement, net of underwriting discounts and the Structuring Fee.