HOLLY ENERGY PARTNERS LP
AMENDMENT TO LONG-TERM INCENTIVE PLAN
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<TYPE>EX-10.4
<SEQUENCE>2
<FILENAME>d29977exv10w4.htm
<DESCRIPTION>AMENDMENT TO LONG-TERM INCENTIVE PLAN
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.4</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>FIRST AMENDMENT TO THE<BR>
HOLLY ENERGY PARTNERS, L.P.<BR>
LONG-TERM INCENTIVE PLAN</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS FIRST AMENDMENT </B>is effective January&nbsp;1, 2005 and is made on behalf of Holly Energy
Partners, L.P. (the &#147;Partnership&#148;) by Holly Logistic Services, L.L.C., a Delaware limited liability
company (the &#147;Company&#148;).
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>WITNESSETH:</B></U>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the board of directors of the Company (the &#147;Board&#148;) adopted the Holly Energy
Partners, L.P. Long-Term Incentive Plan, effective August&nbsp;4, 2004 (the &#147;Plan&#148;);
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, Section 7(a) of the Plan provides that the Plan may be amended by the Board without
approval of any unitholder of the Company or approval of any other person, except as required by
the rules of the securities exchange on which the units are traded, or except as to provide for a
change that materially reduces the benefits of a participant; and
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Board desires to amend the Plan to revise the definition of Fair Market Value to
allow the Compensation Committee to utilize an alternate definition under which value will be based
on the average unit market value over a 30-day trading period.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW, THEREFORE</B>, the definition of &#147;Fair Market Value&#148; in Section&nbsp;2 of the Plan shall be
revised in its entirety to read as follows:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 9%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Fair Market Value&#148; means one of the following as determined at the
time of authorization of an Award by the Committee in its sole discretion:
(i)&nbsp;the closing sales price of a Unit on the date of determination (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 <I>The Wall Street Journal </I>(or other
reporting service approved by the Committee) or (ii)&nbsp;if selected by the
Committee in its sole discretion for a particular Award or Awards, the
average of the closing sales prices of a Unit as reported in <I>The Wall Street
Journal </I>(or other reporting service approved by the Committee) for a period
of 30 consecutive trading days ending on the date of determination or on a
date not more than five trading days prior to the date of determination as
specified by the Committee at the time of authorization of an Award.
Notwithstanding the foregoing, in the event Units are not publicly traded 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.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW, THEREFORE</B>, be it further provided that, except as provided above, the Plan shall remain
unchanged.
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<P align="center" style="font-size: 10pt">1
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF</B>, this First Amendment has been executed by a duly authorized officer of the
Company as of the date specified below and effective as set forth herein.
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    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>HOLLY LOGISTIC SERVICES, L.L.C.</B></TD>
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    <TD align="left" valign="top">By:</TD>
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<P align="center" style="font-size: 10pt">2
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