Exhibit 10.14

EXECUTION VERSION

AMENDMENT NO. 2 TO CREDIT AGREEMENT AND CONSENT

This AMENDMENT NO. 2 TO CREDIT AGREEMENT AND CONSENT, is made this June 17, 2011
(this “Amendment”), by and among TESORO PANAMA COMPANY, S.A., a Panamanian
company (the “Borrower”), each of the financial institutions listed on the
signature pages hereto as a Lender (individually, a “Lender” and collectively,
the “Lenders”), and BNP PARIBAS, as Administrative Agent, Letter of Credit
Issuer, Swing Line Lender, and Daylight Overdraft Bank (in its capacity as
Administrative Agent for the Lenders, together with its successors in such
capacity, the “Administrative Agent”). Each initially capitalized term used but
not otherwise defined herein shall have the meaning ascribed thereto in the
Credit Agreement (as defined below).

W I T N E S S E T H:
WHEREAS:
A.    The Borrower, the Administrative Agent and the Lenders have entered into
that certain Credit Agreement dated October 18, 2010 (together with any
amendments, restatements or other modifications thereof, the “Credit
Agreement”);
B.    The Borrower has requested that the Administrative Agent and the Lenders
amend certain provisions of the Credit Agreement; and
C.    The parties hereto wish to amend certain provisions of the Credit
Agreement, as set forth and subject to the terms and conditions contained
herein.
NOW, THEREFORE, the parties hereto hereby agree as follows:
Section 1.    Amendments to Credit Agreement.
1.1    This Amendment shall be deemed to be an amendment to the Credit Agreement
and shall not be construed in any way as a replacement or substitution therefor.
All of the terms and conditions of, and terms defined in, this Amendment are
hereby incorporated by reference into the Credit Agreement as if such terms and
provisions were set forth in full therein.
1.2    The definition of “Collateral Pool” in Section 1.1 of the Credit
Agreement is hereby amended and restated in its entirety to read as follows:

“Collateral Pool” shall mean at any time, an amount equal to the sum of:
100% of the face value of Cash Collateral (including cash held in lockbox
accounts or concentration accounts in the name of the Borrower so long as the
Collateral Agent has been granted a first priority perfected security interest
in such lockbox accounts, subject only to Permitted Liens); plus

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90% of Eligible Accounts Receivable; plus
90% of Fully Hedged Eligible Inventory; plus
90% of the amount of Net Liquidity Value in Eligible Brokerage Accounts;
plus
90% of the Letters of Credit Issued for Pre-Sold/Fully Hedged Products Not Yet
Delivered; plus
85% of Hedged Eligible Inventory (excluding Fully Hedged Eligible Inventory and
Tier II Hedged Eligible Inventory); plus
80% of Tier II Hedged Eligible Inventory (excluding Fully Hedged Eligible
Inventory); plus
85% of the Letters of Credit Issued for Hedged Products Not Yet Delivered;
plus
80% of Eligible Net Unrealized Positive MTM Gains; minus
100% of Reserves; minus
120% of the Lenders' Swap Liability.
The value of the Collateral Pool shall be determined by reference to the most
recently dated Collateral Pool Report prepared by the Borrower pursuant to
Section 8.02(c) of this Agreement absent any error in such Collateral Pool
Report as of the date delivered. The value of each type of Collateral set forth
above shall be computed in accordance with the provisions of the respective
definitions provided in or otherwise by this Agreement. Notwithstanding the
foregoing, (i) the aggregate amount of Approved Affiliate Oil Cargo Receivables
and any other Accounts for which the Account Debtor is an equity holder or
Affiliate of the Borrower or the Parent included in the calculation of the
Collateral Pool may not exceed an amount equal to 50% of the minimum Adjusted
Tangible Net Worth of the Borrower required pursuant to Section 9.14 of this
Agreement or 50% of the minimum Adjusted Net Working Capital of the Borrower
required pursuant to Section 9.15 of this Agreement, and (ii) the aggregate
amount of Hedged Eligible Inventory (excluding Tier II Hedged Eligible
Inventory) included in the calculation of the Collateral Pool may not exceed an
aggregate maximum volume of 1,000,000 Barrels at any time. Notwithstanding any
other provision of the Loan Documents, no asset shall be given positive value
(i.e. be added to) in the Collateral Pool unless the Collateral Agent has been
granted a first priority (subject to Permitted Liens) perfected security
interest in such asset. Notwithstanding any other provision of the Loan
Documents, the Administrative Agent, in its sole and absolute discretion, shall
have the right to permanently or temporarily decrease the Collateral Pool, or
add or modify additional concentration or other limits affecting the Collateral
Pool, at any time for any duration, effective upon verbal notification to the
Borrower. In the event of any such decrease, addition or
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modification by the Administrative Agent, the Administrative Agent shall within
one (1) Business Day give notice of such decrease, addition or modification to
the Lenders. Notwithstanding any other provision of the Loan Documents, no asset
shall be included in the Collateral Pool in duplicate categories such that it
would be counted towards the calculation of the Collateral Pool more than once.
1.3    The definition of “Collateral Pool Report” in Section 1.1 of the Credit
Agreement is hereby amended and restated in its entirety to read as follows:

“Collateral Pool Report” shall mean a certificate, executed by a Responsible
Officer of the Borrower and substantially in the form of Exhibit A hereto,
delivered to the Administrative Agent and the Lenders in accordance with the
requirements of Section 8.02(c) of this Agreement, which shall have attached
thereto schedules in form and substance (as to accuracy and completeness)
acceptable to the Administrative Agent and the Lenders showing the following
with respect to all Collateral comprising the Collateral Pool:
(a)     bank account statements reflecting Cash Collateral and other statements
reflecting ownership and market value of Cash Equivalents;
(b)     brokers account statements reflecting Net Liquidity Value in Eligible
Brokerage Accounts;
(c)     schedule of Eligible Accounts Receivable with details (including break
outs of any Approved Affiliate Oil Cargo Receivables) and reconciliations as to
any offsets, counterclaims or other applicable deductions as provided in the
definition of Eligible Accounts Receivable as well as agings;
(d)     schedule of Fully Hedged Eligible Inventory containing back-up
information as to (i) location and pricing (calculated pursuant to a methodology
acceptable to the Administrative Agent) of inventory (specifically setting out
in-transit inventory, which shall be included as a separate line item on the
Collateral Pool Report), (ii) weekly statements from third-party storage
providers (including PTP) and inspection report for all Products in storage from
an independent third-party firm in the Republic of Panama acceptable to the
Administrative Agent that in each case includes confirmations of volume, (iii)
schedule of negotiable documents of title representing such Fully Hedged
Eligible Inventory, if applicable, and (iv) supporting documentation evidencing
the hedges, including copies of the open strategy summary reports in form and
substance acceptable to the Administrative Agent;
(e)     schedule of Hedged Eligible Inventory and Tier II Hedged Eligible
Inventory containing back-up information as to (i) location and pricing
(calculated pursuant to a methodology acceptable to the Administrative Agent) of
inventory (specifically setting out in-transit inventory, which shall be
included as a separate line item on the Collateral Pool Report), (ii) weekly
statements from third-party storage providers (including PTP) and inspection
report for all Products in storage from an independent third-party firm in the
Republic of Panama acceptable to the
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Administrative Agent that in each case includes confirmations of volume, and
(iii) schedule of negotiable documents of title representing such Hedged
Eligible Inventory, if applicable, and (iv) supporting documentation evidencing
the hedges, and (v) a copy of the open strategy summary reports in form and
substance acceptable to the Administrative Agent;
(f)     evidence in form and substance acceptable to the Administrative Agent of
committed available credit of the Parent;
(g)     the value of any Letters of Credit Issued for Products Not Yet
Delivered, broken down by Letters of Credit Issued for Hedged Products Not Yet
Delivered and Letters of Credit Issued for Pre-Sold/Fully Hedged Products Not
Yet Delivered and by counterparty and showing all related liabilities including
accounts payable, accrued payables, and marked-to-market losses;
(h)     the value of Eligible Net Unrealized Positive MTM Gains;
(i)     copies of third-party statements of accounts confirming account or asset
balances in brokerage and commodities used in the calculation of the Collateral
Pool, and other similar counterparty confirmations supporting the calculation of
the Collateral Pool;
(j)     if any Eligible Account Receivable or the creation, attachment,
perfection, or enforcement of any Lien on any Eligible Account Receivable is
governed by Panama law, a copy (with original counterpart to follow promptly
thereafter) of a “Supplemental Commercial Pledge Agreement” executed by a
Responsible Officer of the Borrower in the form attached to that certain
Commercial Pledge Agreement, dated as of the date hereof, between the Borrower
and the Administrative Agent, with respect to each such Eligible Account
Receivable;
(k)     schedule of Reserves;
(l)     schedule of all Lenders' Swap Liability together with all supporting
documentation in respect thereof,
(m)     schedule of Letters of Credit and Loans outstanding as of the relevant
Collateral Pool Reporting Date;
(n)     schedule of Facility B Aggregate Outstanding Extensions of Credit as of
the relevant Collateral Pool Reporting Date, which shall include without
limitation updated values for escalating clause letters of credit,
(o)     the Facility B Maximum Amount then in effect; and
(p)     as required by Section 8.02(d) of this Agreement, a Position Limit
Report and a Mark to Market Report.

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All amounts in the Collateral Pool Report will be calculated in Dollars and, to
the extent any such amounts shall be converted from another currency, shall be
so converted pursuant to a methodology approved by the Administrative Agent and
the Required Lenders.
1.4    A new definition of “Second Amendment Date” is hereby added to Section
1.1 of the Credit Agreement in the appropriate alphabetical order to read in its
entirety as follows:

“Second Amendment Date” shall mean June 17, 2011.
1.5    A new definition of “Tier II Hedged Eligible Inventory” is hereby added
to Section 1.1 of the Credit Agreement in the appropriate alphabetical order to
read in its entirety as follows:

“Tier II Hedged Eligible Inventory” shall mean, with respect to each Collateral
Pool Reporting Date, the aggregate Hedged Eligible Inventory in excess of
1,000,000 Barrels.
1.6    Sections 8.03(j) and (k) of the Credit Agreement are hereby amended and
restated in their entirety to read as follows:

“(j)    within one (1) Business Day of the occurrence thereof, any violation of
any of the limits set forth in Sections 8.13 and 8.14 of this Agreement, and the
Borrower shall in addition provide a detailed explanation of the reason for such
violation and the Borrower's plan for eliminating and/or preventing the
reoccurrence of such violation;
(k)    [Reserved];”
1.7    Section 8.13 of the Credit Agreement is hereby amended and restated in
its entirety to read as follows:
“SECTION 8.13    Position Limits.

The Borrower shall at all times cause its Net Outright Position and Net Basis
Position (provided that in each case all such positions shall include options on
a Delta Equivalent Basis) not to exceed the applicable limits set forth on
Schedule 8.13 attached hereto and incorporated herein as such corresponds to the
then most recently reported Adjusted Tangible Net Worth.”
1.8    Section 8.14 of the Credit Agreement is hereby amended and restated in
its entirety to read as follows:
“SECTION 8.14    Stop Loss Limit and VAR Limit.

The Borrower shall at all times cause its daily stop loss, yearly stop loss and
Value at Risk (as such term is defined in the Borrower's Risk Control Policy)
not to
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exceed the applicable limits set forth on Schedule 8.14 attached hereto and
incorporated herein as such corresponds to the then most recently reported
Adjusted Tangible Net Worth.”
1.9    Section 9.19 of the Credit Agreement is hereby amended and restated in
its entirety to read as follows:
“SECTION 9.19    Risk Control Policy Changes.

The Borrower shall not, and shall not suffer or permit any Subsidiary to permit,
any amendment or modification to the Risk Control Policy without the express
written consent of the Administrative Agent (which consent will not be
unreasonably withheld, conditioned, or delayed), and, with respect to any
amendment or modification to the Risk Control Policy that is or is likely to be
materially adverse to the interests of the Lenders, the Borrower shall not, and
shall not suffer or permit any Subsidiary to, permit such amendment or
modification without the express written consent of the Administrative Agent and
the Required Lenders (which consent will not be unreasonably withheld,
conditioned, or delayed).”
1.10    Section 10.01(o) of the Credit Agreement is hereby amended and restated
in its entirety to read as follows:
“(o)    Position Limit Violations. For any reason:

(i)     any violation of any of the daily or yearly stop loss limits set forth
in Section 8.14 of this Agreement shall have occurred and, as of the second
Business Day after the occurrence thereof in the case of violations of daily
stop loss limits or the third Business Day after the occurrence thereof in the
case of violations of yearly stop loss limits, such violation continues to
exist; provided, however, that if such violation is with respect to a daily stop
loss limit and the Parent shall have contributed new equity to the Borrower on
or before such second Business Day or if such violation is with respect to a
yearly stop loss limit and the Parent shall have contributed new equity to the
Borrower on or before such third Business Day, in each case in an amount equal
to the amount of such excess, on terms and conditions acceptable to the
Administrative Agent, and in accordance with the plan delivered in respect
thereof pursuant to Section 8.03(j) of this Agreement, such violation shall be
deemed not to be continuing as of such third Business Day; or
(ii)     any violation of any of the limits set forth in Sections 8.13 or 8.14
of this Agreement (other than the daily or yearly stop loss limits set forth in
Section 8.14 of this Agreement) shall have occurred and continues to exist as of
the third Business Day after the occurrence thereof; or”
1.11    Exhibit A to the Credit Agreement (“Collateral Pool Report”) is hereby
deleted in its entirety and replaced with Exhibit A attached hereto.
1.12    Exhibit G to the Credit Agreement (“Form of Position Limit Report”)is
hereby deleted in its entirety and replaced with Exhibit G attached hereto.
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1.13    Exhibit H to the Credit Agreement (“Risk Control Policy”) is hereby
deleted in its entirety and replaced with Exhibit H attached hereto.
1.14    A new Schedule 8.13 to the Credit Agreement (“Position Limits”) is
hereby added to the Credit Agreement to and attached as Schedule 8.13 hereto.
1.15    A new Schedule 8.14 to the Credit Agreement (“Stop Loss Limit and VAR
Limit”) is hereby added to the Credit Agreement to and attached as Schedule 8.14
hereto.
1.16    The Credit Agreement, the Loan Documents and all agreements, instruments
and documents executed and delivered in connection with any of the foregoing,
shall each be deemed to be amended hereby to the extent necessary, if any, to
give effect to the provisions of this Amendment. Except as so amended hereby,
the Credit Agreement and the Loan Documents shall remain in full force and
effect in accordance with their respective terms.

Section 2.    Consent to Amendment to Risk Control Policy
2.1    Amendment to Risk Control Policy.
Section 9.19 of the Credit Agreement, in pertinent part, requires the written
consent of the Required Lenders for the Borrower to amend, modify or supplement
the Risk Control Policy. The Borrower has requested the consent of the
Administrative Agent and the Lenders to amend the Risk Control Policy to provide
for revised position limits for the Borrower. In the exercise of their
discretion as prudent lenders, the Administrative Agent and the Lenders hereby
consent to the amendment of the Risk Control Policy to amend the position limits
of the Borrower to the limits set forth in Exhibit H attached to the Credit
Agreement, as amended by this Amendment.

Section 3.    Representations and Warranties of the Borrower.
The Borrower hereby represents and warrants to the Administrative Agent and the
Lenders that:
3.1    After giving effect to the amendments of the Credit Agreement pursuant to
and consents contained in this Amendment, and on the date hereof (i) each of the
representations and warranties set forth in Article VII of the Credit Agreement
is true and correct in all respects as if made on the date hereof (except with
respect to representations or warranties that specifically relate to an earlier
date, in which case such representations or warranties shall be true and correct
in all respects as of such earlier date), and (ii) there exists no Default or
Event of Default under the Credit Agreement after giving effect to this
Amendment.
3.2    The Borrower has full corporate power and authority to execute and
deliver this Amendment and to perform the obligations on its part to be
performed thereunder and under the Credit Agreement as amended hereby.
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Section 4.    Conditions Precedent to Amendments.
The effectiveness of the amendments contained in Section 1 of this Amendment and
the consent contained in Section 2 of this Amendment is subject to the
satisfaction, in form and substance satisfactory to the Administrative Agent, of
each of the following conditions precedent:
4.1    The Borrower, the Lenders, and the Administrative Agent shall have each
duly executed and delivered to the Administrative Agent this Amendment.
4.2    The Facility B Agent shall have executed and delivered to the
Administrative Agent all necessary consents to the amendments to the Credit
Agreement contemplated herein.
4.3    In consideration of the Lenders' efforts in connection with this
Amendment, the Borrower agrees to pay the Administrative Agent, for the benefit
of each Lender that executes and agrees to this Amendment, an amendment fee
equal to $7,500 (a “Closing Date Amendment Fee”), which Closing Date Amendment
Fee shall be fully earned and due and payable on the Second Amendment Date,
shall be nonrefundable for any reason whatsoever and shall be in addition to any
other fees, costs and expenses payable pursuant to Credit Agreement or any other
Loan Documents. The Borrower's obligation to pay the foregoing fees will not be
subject to counterclaim or setoff for, or be otherwise affected by, any claim or
dispute the Borrower may have.
4.4    No Default or Event of Default and be continuing as of the date hereof or
as of the date that each of the other conditions in this Section 4 is satisfied.
4.5    The Administrative Agent and the Lenders shall have received such
approvals, opinions or documents as each may reasonably request, the Borrower
shall have taken all such other actions as the Administrative Agent may
reasonably request, and all legal matters incident to the foregoing shall be
satisfactory to the Administrative Agent and the Lenders.

Section 5.    Reference to and Effect Upon the Credit Agreement and other Loan
Documents.
5.1    Except as specifically amended in Section 1 of this Amendment and
consented to in Section 2 of this Amendment, the Credit Agreement and each of
the other Loan Documents shall remain in full force and effect and each is
hereby ratified and confirmed.
5.2    The execution, delivery and effect of this Amendment shall be limited
precisely as written and shall not be deemed to (i) be a consent to any waiver
of any term or condition or to any amendment or modification of any term or
condition of the Credit Agreement or any other Loan Document, except upon the
effectiveness of this Amendment, as specifically amended in Section 1 of this
Amendment and consented to in Section 2 of this Amendment, (ii) impair,
restrict, limit, or otherwise prejudice any right, power, privilege, or remedy
that the Administrative Agent or any Lender now has or may

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have in the future under or in connection with the Credit Agreement, any other
Loan Document, at law, or in equity, or (iii) constitute any course of dealing
or other basis for altering any obligation of the Borrower or any right, power,
privilege, or remedy of the Administrative Agent or the Lenders under the Credit
Agreement or any of the other Loan Documents. This Amendment embodies the entire
agreement and understanding among the Borrower, the Lenders, and the
Administrative Agent in respect of the amendment of the terms and conditions of
the Credit Agreement and consent to the amendment of the Risk Control Policy, in
each case as expressly provided herein. Except as expressly stated herein, the
Administrative Agent and the Lenders hereby reserve all rights, powers,
privileges and remedies under the Credit Agreement and all other Loan Documents,
at law, and in equity.
5.3    The consent agreed to in Section 2.1 of this Amendment is strictly
limited to the amendment of the Borrower's Risk Control Policy in the form
attached as Exhibit H to the Credit Agreement, as amended hereby.
5.4    Upon the effectiveness of this Amendment, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or any other word
or words of similar import shall mean and be a reference to the Credit Agreement
as amended hereby, and each reference in any other Loan Document to the Credit
Agreement or any word or words of similar import shall mean and be a reference
to the Credit Agreement as amended hereby.
5.5    This Amendment constitutes a Loan Document (as defined in the Credit
Agreement) and any breach of any representation or warranty made herein or
covenant or agreement contained herein will constitute an Event of Default under
the Credit Agreement.

Section 6.    Miscellaneous.
6.1    Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed an original, but
all such counterparts shall constitute one and the same instrument. It is not
necessary that any counterpart be signed by all of the parties hereto. A
facsimile copy of this Amendment and the signatures thereon shall be considered
for all purposes as originals.
6.2    GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO CONFLICTS OF LAW PROVISIONS) OF
THE STATE OF NEW YORK.
6.3    Severability. The illegality or unenforceability of any provision of this
Amendment or any instrument or agreement required hereunder shall not in any way
affect or impair the legality or enforceability of the remaining provisions of
this Amendment or any instrument or agreement required hereunder.

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6.4    Modification and Waiver. No waiver or modification of this Amendment
shall be effective unless the same shall be in writing and signed by all parties
hereto.
[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed on the date first above written.
                
TESORO PANAMA COMPANY, S.A., as
Borrower
 
 
 
 
By:
/s/ TRACY D. JACKSON
Name:
Tracy D. Jackson
Title:
Vice-President, Finance and Treasurer
 
 
 
 
 
 

Signature Page to Amendment No. 2 to Credit Agreement

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BNP PARIBAS, as Lender, Administrative Agent,
Lead Arranger, Letter of Credit Issuer, Daylight
Overdraft Bank, and Swing Line Lender
 
 
By:
/s/ MATTHEW L. ROSETTI
Name:
Matthew L. Rosetti
Title:
Director
 
 
By:
/s/ JANET KOEHNE
Name:
Janet Koehne
Title:
Director

Signature Page to Amendment No. 2 to Credit Agreement

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SOCIÉTÉ GÉNÉRALE, as a Lender
 
 
By:
/s/ CHUNG-TAEK OH
Name:
Chung-Taek Oh
Title:
Director
 
 
By:
/s/ SEBASTIEN RIBATTO
Name:
Sebastien Ribatto
Title:
Managing Director

Signature Page to Amendment No. 2 to Credit Agreement

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NATIXIS, NEW YORK BRANCH, as a Lender
 
 
By:
/s/ DAVID PERSHAD
Name:
David Pershad
Title:
Managing Director
 
 
By:
/s/ VINCENT LAURAS
Name:
Vincent Lauras
Title:
Senior Managing Director

Signature Page to Amendment No. 2 to Credit Agreement

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CREDIT AGRICOLE CORPORATE AND
INVESTMENT BANK, as a Lender
 
 
By:
/s/ ZALI WIN
Name:
Zali Win
Title:
Managing Director
 
 
By:
/s/ LOUIS PRIEUR
Name:
Louis Prieur
Title:
Vice President

Signature Page to Amendment No. 2 to Credit Agreement

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EXECUTION VERSION
                
RB INTERNATIONAL FINANCE (USA) LLC, as
a Lender
 
 
By:
/s/ ASTRID NOEBAUER
Name:
 Astrid Noebauer
Title:
Group Vice President
 
 
By:
/s/ SHIRLEY RITCH
Name:
Shirley Ritch
Title:
Vice President

Signature Page to Amendment No. 2 to Credit Agreement

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CITIBANK N.A. PANAMA BRANCH, as a
Lender
 
 
By:
/s/ RICARDO G. FERNANDEZ
Name:
Ricardo G. Fernandez
Title:
Director

Signature Page to Amendment No. 2 to Credit Agreement

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THE BANK OF NOVA SCOTIA, PANAMA
 BRANCH, as a Lender
 
 
By:
/s/ BRITTANNIA AMAYA
Name:
Brittannia Amaya
Title:
Credit Solutions, Director

Signature Page to Amendment No. 2 to Credit Agreement

                                

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ABN AMRO BANK N.V., as a Lender
 
 
By:
/s/ L.G. ENGELSBEL-SPORISJEVA
Name:
L.G. Engelsbel-Sporisjeva
Title:
Head of Commodities Trade Services
 
 
By:
/s/ B. GREMEZ
Name:
B. Gremez
Title:
Global Head Energy Commodities
 
Managing Director

Signature Page to Amendment No. 2 to Credit Agreement

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MACQUARIE BANK LIMITED, as a Lender
 
 
By:
/s/ STEPHEN BOWER
Name:
Stephen Bower
Title:
Associate Director
 
 
By:
/s/ ANDREW MCGRATH
Name:
Andrew McGrath
Title:
Division Director

Signature Page to Amendment No. 2 to Credit Agreement

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Consented to and acknowledged by:

                
BNP PARIBAS (SUISSE) SA, for itself on behalf
of the Facility B Lenders as Facility B Agent
 
 
By:
/s/ B. LE GOFF
Name:
B. Le Goff
Title:
 
 
 
By:
/s/ DANIEL HABEGGER
Name:
Daniel Habegger
Title:
 

 

Signature Page to Amendment No. 2 to Credit Agreement

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EXHIBIT A

FORM OF

COLLATERAL POOL REPORT

_______ ___, 201__

BNP Paribas, as Administrative Agent
787 Seventh Avenue
New York, New York 10019
Attention: Anne-Catherine Mathiot
Matthew Rosetti
Ed Tice
Facsimile: 212-471-6862

BNP Paribas (Suisse) SA
2 Place de Holland
CH-1204 Geneve
Switzerland
Attention: M. Bernard Le Goff
Facsimile: +41(0) 58 212 22 22

Re:    (i) That certain Uncommitted Revolving Credit Agreement (as modified,
supplemented, amended, or restated from time to time, the “Facility A Credit
Agreement”), dated as of October 18, 2010, by and among Tesoro Panama Company,
S.A. (the “Borrower”), the lenders from time to time parties thereto (the
“Facility A Lenders”), BNP Paribas, as Administrative Agent, Letter of Credit
Issuer, Swing Line Lender, and Daylight Overdraft Bank (in such capacity, the
“Facility A Agent”), Credit Agricole Corporate and Investment Bank, as
Syndication Agent, and BNP Paribas Securities Corp., as Arranger; and (ii) that
certain Facility Letter, dated as of October 18, 2010, by and among Borrower,
the lenders from time to time parties thereto (the “Facility B Lenders”), and
BNP Paribas (Suisse) SA, as agent for the Facility B Lenders (in such capacity,
the “Facility B Agent”).

Ladies and Gentlemen:

The Borrower hereby delivers the attached Collateral Pool Report to the Facility
A Agent and the Facility B Agent for the Collateral Pool Reporting Date
____________, 20__ in accordance with Section 8.02(c) of the Facility A Credit
Agreement and as otherwise required by the Facility A Credit Agreement and
certifies to the Facility A Agent and the Facility B Agent

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that (i) the Borrower is in compliance with the terms and covenants of the
Facility A Credit Agreement and the Facility B Credit Agreement and all
representations and warranties in Article VII of the Facility A Credit Agreement
and in the Facility B Credit Agreement are true and correct as of the Reporting
Date (except with respect to representations and warranties relating to an
earlier date, in which case such representations and warranties shall be true as
of such earlier date), (ii) the Aggregate Outstanding Extensions of Credit do
not exceed the lesser of (A) the Maximum Availability Amount and (B) the
Collateral Pool, (iii) the Combined Facilities Aggregate Outstanding Extensions
of Credit shall not exceed the least of (X) the Combined Facilities Maximum
Amount then in effect, (Y) the Collateral Pool, or (Z) $700,000,000; (iv) the
undersigned has no knowledge of any Default or Event of Default under the
Facility A Credit Agreement or any event of default described in Section 16 of
the Facility B Credit Agreement, and (iv) the information contained in Annex I
attached hereto and the other attachments to and the information indicated on
this Collateral Pool Report were accurate and true as of such Collateral Pool
Reporting Date. Capitalized terms used but not defined herein shall have the
meanings given to such terms in the Facility A Credit Agreement.
The statements made herein (and in the Schedules attached hereto) shall be
deemed to be (i) representations and warranties made in a Loan Document for the
purposes of Section 10.01(b) of the Facility A Credit Agreement and (ii)
representations and warranties made under the Facility B Credit Agreement.

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Very truly yours,

TESORO PANAMA COMPANY, S.A.,
a Panamanian corporation

By:         
Name:
Title:

Annexes

Calculation of Collateral Pool

Schedules (to be attached as applicable)

Bank Account Statements
Brokers Account Statements
Schedule of Eligible Accounts Receivable
Schedule of Fully Hedged Eligible Inventory (including without limitation copies
of open strategy reports and identification of Platts or other publication
utilized)
Schedule of Hedged Eligible Inventory and Tier II Hedged Eligible Inventory
(including without limitation copies of open strategy reports and identification
of Platts or other publication utilized)
Evidence of Committed Available Credit of the Parent
Value of Letters of Credit Issued for Products Not Yet Delivered
Value of Eligible Net Unrealized Positive MTM Gains
Third-Party Statements of Accounts
Supplemental Commercial Pledge Agreement
Schedule of Reserves
Schedule of all Lenders' Swap Liability
Schedule of Facility A Aggregate Outstanding Extensions of Credit
Schedule of Facility B Aggregate Outstanding Extensions of Credit (with updated
values of escalating letters of credit)
Position Limit Report
Mark to Market Report

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ANNEX I

TESORO PANAMA COMPANY, S.A.
COLLATERAL POOL REPORT
as of [DATE]
 
 
(A)
(B)
(C)
 
Collateral Pool Category:
Value as of Collateral Pool Reporting Date:
Advance Rate:
Collateral Pool Amount
(A x B):
I.
Cash Collateral:
$_____________
100%
$_____________
 
 
 
 
 
II.
Eligible Accounts Receivable:
$_____________
90%
$_____________1
 
 
 
 
 
III.
Fully Hedged Eligible Inventory:
$_____________
90%
$_____________
 
 
 
 
 
IV.
Net Liquidity Value in Eligible Brokerage Accounts:
$_____________
90%
$_____________
 
 
 
 
 
V.
Letters of Credit Issued for Pre-Sold/Fully Hedged Products Not Yet Delivered:
$_____________
90%
$_____________
 
 
 
 
 
VI.
Hedged Eligible Inventory (excluding Fully Hedged Eligible Inventory and Tier II
Hedged Eligible Inventory):
$_____________
85%
$_____________2
 
 
 
 
 
VII.
Tier II Hedged Eligible Inventory (excluding Fully Hedged Eligible Inventory):
$_____________
80%
$_____________
 
 
 
 
 
VIII.
Letters of Credit Issued for Hedged Products Not Yet Delivered:
$_____________
85%
$_____________
 
 
 
 
 
IX.
Eligible Net Unrealized Positive MTM Gains:
$_____________
80%
$_____________
 
 
 
 
 
X.
 
Collateral Pool Subtotal:
(Sum of I through IX)
$_____________

1. The aggregate amount of Approved Affiliate Oil Cargo Receivables and any
other Accounts for which the Account Debtor is an equity holder or Affiliate of
the Borrower or the Parent included in the calculation of the Collateral Pool
may not exceed an amount equal to 50% of the minimum Adjusted Tangible Net Worth
of the Borrower required pursuant to Section 9.14 of this Agreement or 50% of
the minimum Adjusted Net Working Capital of the Borrower required pursuant to
Section 9.15 of this Agreement
2. The aggregate amount of Hedged Eligible Inventory (excluding Tier II Hedged
Eligible Inventory) included in the calculation of the Collateral Pool may not
exceed an aggregate maximum volume of 1,000,000 Barrels at any time

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XI.
Reserves:
$_____________
100%
 
 
 
 
 
 
XII.
Swap Liability:
$_____________
120%
 
 
 
 
 
 
XIII.
 
Collateral Pool Total:
(X minus XI and XII)
$_____________
 
 
 
 
 
XIV.
Facility A Loans Outstanding:
$_____________
 
 
 
XV.
Facility A Letters of Credit Outstanding:
$_____________
 
 
 
XVI.
Facility A Aggregate Outstanding Extensions of Credit:
(Sum of XIV and XV)
$_____________
 
 
 
XVII.
Facility B Loans Outstanding:
$_____________
 
 
 
XVIII.
Facility B Letters of Credit Outstanding:
$_____________
 
 
 
XIX.
Facility B Letters of Indemnity Outstanding:
$_____________
 
 
 
XX.
Facility B Aggregate Outstanding Extensions of Credit:
(Sum of XVII through XIX)
$_____________
 
 
 
XXI.
Combined Facility Aggregate Outstanding Extensions of Credit:
(Sum of XVI and XX)
$_____________
 
 
 
XXII.
Collateral Pool Available for Facility A or Facility B:
(XIII minus XXI)
$_____________

Facility A Availability

XXIII.
Collateral Pool Available for Facility A:
(XIII minus XX)
$_____________
 
 
 
XXIV.
Maximum Availability Amount in effect:
$_____________
 
 
 
XXV.
 Facility A Availability:
(Lesser of XXII or XXIV minus XVI)
$_____________***

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Facility B Availability

XXVI.
Collateral Pool Available for Facility B:
(XIII minus XVI)
$_____________
 
 
 
XXVII.
Facility B Maximum Amount in effect:
$_____________
 
 
 
XXVIII.
 Facility B Availability:
(Lesser of XXII or XXVII minus XX)
$_____________***

*** Notwithstanding anything to the contrary, the Facility A Availability set
forth in Item XXV and the Facility B Availability set forth in Item XXVIII are
each at all times subject to the combined facilities collateral pool
availability limit set forth in Item XXII.

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EXHIBIT G
FORM OF
TESORO PANAMA COMPANY, S.A.
POSITION LIMIT REPORT
AS OF [DATE]

This report is delivered as a component of the Collateral Pool Report in
accordance with the requirements of (i) Section 8.02(d) of the Uncommitted
Revolving Credit Agreement (as modified, supplemented, amended, or restated from
time to time, the “Facility A Credit Agreement”), dated as of October 18, 2010,
by and among Tesoro Panama Company, S.A. (the “Borrower”), the lenders from time
to time parties thereto (the “Facility A Lenders”), BNP Paribas, as
Administrative Agent, Letter of Credit Issuer, Swing Line Lender, and Daylight
Overdraft Bank (in such capacity, the “Facility A Agent”), Credit Agricole
Corporate and Investment Bank, as Syndication Agent, and BNP Paribas Securities
Corp., as Arranger (capitalized terms used herein that are not defined shall
have the respective meanings ascribed thereto in the Facility A Credit
Agreement); and (ii) the Facility Letter, dated as of October 18, 2010, by and
among Borrower, the lenders from time to time parties thereto (the “Facility B
Lenders”), BNP Paribas (Suisse) SA, as agent for the Facility B Lenders (in such
capacity, the “Facility B Agent”).
To the best of the knowledge of the Borrower at the time of preparation of the
Position Limit Report attached hereto, the information presented therein was
true and correct in all material respects as of the date hereof and no Default
or Event of Default (as such terms are defined in the Facility A Credit
Agreement) under the Facility A Credit Agreement or any event of default
described in Section 16 of the Facility B Credit Agreement has occurred and is
continuing.
During the Reporting Period, except as expressly disclosed to the Facility A
Agent and the Facility A Lenders pursuant to Sections 8.03(j) of the Facility A
Credit Agreement and to the Facility B Agent pursuant to the Facility B Credit
Agreement, the Borrower has not been in violation of Sections 8.13 or 8.14 of
the Facility A Credit Agreement.
As of the Reporting Date1:
A.        The Borrower's Adjusted Tangible Net Worth was: $____________
B.        The Borrower held on an aggregate basis:
1.    As a Net Outright Position, _____________ Barrels of Product and the limit
set forth in Schedule 8.13 of the Facility A Credit Agreement for Net Outright
Position is _________ Barrels of Product; and
2.    As a Net Basis Position, _____________ Barrels of Product and the limit
set forth in Schedule 8.13 of the Facility A Credit Agreement for Net Basis
Position is ___________ Barrels of Product.

1. No violation of any of the following will result in an Event of Default
unless such violation results in a Tolerance Limit Violation and is deemed an
Event of Default under Section 10.01(o) of the Facility A Credit Agreement.

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C.    The Borrower's daily stop loss was $____________ and the daily stop loss
limit set forth in Schedule 8.14 of the Facility A Credit Agreement is
$________.
D.    The Borrower's yearly stop loss was $____________ and the yearly stop loss
limit set forth in Schedule 8.14 of the Facility A Credit Agreement is
$________.
E.    The Borrower had Value At Risk of $____________ and the Value at Risk set
forth in Schedule 8.14 of the Facility A Credit Agreement is $________.
The statements made herein (and in the Schedules hereto) shall be deemed to be
(i) representations and warranties made in a Loan Document for the purposes of
Sections 7.18 and 10.01(b) of the Facility A Credit Agreement and (ii)
representations and warranties made under the Facility B Credit Agreement.

[See Attached Position Limit Report]

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EXHIBIT H
TESORO PANAMA COMPANY, S.A.
RISK CONTROL POLICY

[See Attached]

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Schedule 8.13
Position Limits

Adjusted Tangible Net Worth
Net Outright Position Limit (bbls)
Net Basis Position Limit (bbls)
≥$70,000,000
200,000
5,500,000
≥$60,000,000 and <$70,000,000
200,000
4,500,000
≥$50,000,000 and <$60,000,000
150,000
3,750,000
≥$40,000,000 and <$50,000,000
100,000
3,250,000
<$40,000,000
100,000
2,500,000

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Schedule 8.14
Stop Loss Limits and VAR Limit

Adjusted Tangible Net Worth
Daily Stop Loss Limit
Yearly Stop Loss Limit
Value at Risk Limit
≥$70,000,000
$5,000,000
$15,000,000
$7,000,000
≥$60,000,000 and <$70,000,000
$4,250,000
$13,000,000
$6,000,000
≥$50,000,000 and <$60,000,000
$3,500,000
$11,000,000
$5,000,000
≥$40,000,000 and <$50,000,000
$3,000,000
$9,000,000
$4,000,000
<$40,000,000
$2,500,000
$7,500,000
$3,000,000