TESORO LOGISTICS LP | 2013 | FY | 3


The following table illustrates the percentage allocations of available cash from operating surplus between the unitholders and our general partner based on the specified target distribution levels. The amounts set forth under marginal percentage interest in distributions are the percentage interests of our general partner and the unitholders in any available cash from operating surplus we distribute up to and including the corresponding amount in the column total quarterly distribution per unit target amount. The percentage interests shown for our unitholders and our general partner for the minimum quarterly distribution are also applicable to quarterly distribution amounts that are less than the minimum quarterly distribution. For illustrative purposes, the percentage interests set forth below for our general partner assume that there are no arrearages on common units, our general partner has contributed any additional capital necessary to maintain its 2% general partner interest and that our general partner owns all of the IDRs.
 
Total quarterly distribution per unit target amount
 
Marginal percentage interest in distributions
 
 
Unitholders
 
General Partner
 
Incentive Distribution Rights
Minimum Quarterly Distribution
$0.337500
 
 
98%
 
2%
 
First Target Distribution
Above $0.337500 up to $0.388125
 
98%
 
2%
 
Second Target Distribution
Above $0.388125 up to $0.421875
 
85%
 
2%
 
13%
Third Target Distribution
Above $0.421875 up to $0.506250
 
75%
 
2%
 
23%
Thereafter
Above $0.506250
 
 
50%
 
2%
 
48%

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