EXHIBIT 10.1

EXECUTION COPY

AMENDMENT NO. 2

TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

          This AMENDMENT NO. 2 to THIRD AMENDED AND RESTATED CREDIT AGREEMENT
(the “Amendment”), dated as of May 17, 2005, is entered into by and among Tesoro
Corporation (the “Borrower”), the financial institutions party to the
below-defined Credit Agreement (the “Lenders”), and JPMorgan Chase Bank, N.A.
(successor by merger to Bank One, NA (Illinois)), as Administrative Agent (the
“Agent”). Each capitalized term used herein and not otherwise defined herein
shall have the meaning given to it in the below-defined Credit Agreement.

WITNESSETH

          WHEREAS, the Borrower, the Lenders, and the Agent are parties to a
Third Amended and Restated Credit Agreement dated as of May 25, 2004 (as the
same may be amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”); and

          WHEREAS, the Borrower wishes to amend the Credit Agreement in certain
respects and the Lenders and the Agent are willing to amend the Credit Agreement
on the terms and conditions set forth herein;

          NOW, THEREFORE, in consideration of the premises set forth above, the
terms and conditions contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Borrower, the Agent and the Lenders hereby agree as follows:

     1. Amendments to Credit Agreement. Effective as of the date first above
written, and subject to the satisfaction of the conditions to effectiveness set
forth in Section 2 below, the Credit Agreement is hereby amended as follows:

     (a) The definition of “Termination Date” set forth in Section 1.1 of the
Credit Agreement is hereby amended in its entirety as follows:

“Termination Date” means the earlier of (a) June 30, 2008 and (b) the date of
termination in whole of the Aggregate Revolving Loan Commitment pursuant to
Section 2.4 hereof or the Revolving Loan Commitments pursuant to Section 8.1
hereof.

     (b) The Pricing Schedule to the Credit Agreement is hereby amended in its
entirety pursuant to the Pricing Schedule attached hereto as Exhibit A.

 

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     2.Conditions of Effectiveness. This Amendment shall become effective and be
deemed effective as of the date hereof, if, and only if:

          (a) the Agent shall have received executed copies of this Amendment
from the Borrower and each of the Lenders;

          (b) the Agent shall have received a written reaffirmation of the
Borrower’s and the Subsidiary Guarantors’ respective obligations under the
Guaranty and the Collateral Documents in form and substance substantially
similar to Exhibit B hereto; and

          (c) the Agent shall have receive the following fees in immediately
available funds, which, once paid, shall be fully earned and non-refundable: for
each Lender with a Revolving Loan Commitment that signs this Amendment, an
amount equal to 0.05% times such Lender’s Revolving Loan Commitment.

     3. Representations and Warranties of the Borrower. The Borrower hereby
represents and warrants as follows:

          (a) The Credit Agreement as previously executed constitutes the legal,
valid and binding obligation of the Borrower and is enforceable against the
Borrower in accordance with its terms, except as enforceability may be limited
by (i) bankruptcy, insolvency, fraudulent conveyances, reorganization or similar
laws relating to or affecting the enforcement of creditors’ rights generally;
(ii) general equitable principles (whether considered in a proceeding in equity
or at law); and (iii) requirements of reasonableness, good faith and fair
dealing.

          (b) Upon the effectiveness of this Amendment, the Borrower hereby
(i) represents that no Default or Unmatured Default exists under the terms of
the Credit Agreement, (ii) reaffirms all covenants, representations and
warranties made in the Credit Agreement, and (iii) agrees that all such
covenants, representations and warranties shall be deemed to have been remade as
of the effective date of this Amendment, provided that any such covenant,
representation or warranty that references a specific date is reaffirmed as of
such referenced date.

          (c) The modifications contemplated by this Amendment are permitted
under the terms of the Other Senior Secured Debt and those indentures referenced
in Section 9.18 of the Credit Agreement that remain in effect as of the date
hereof.

     4. Effect on the Credit Agreement.

          (a) Upon the effectiveness of this Amendment, on and after the date
hereof, each reference in the Credit Agreement to “this Agreement,” “hereunder,”
“hereof,” “herein” or words of like import shall mean and be a reference to the
Credit Agreement, as amended and modified hereby.

          (b) Except as specifically amended and modified above, the Credit
Agreement and all other documents, instruments and agreements executed and/or
delivered in connection therewith shall remain in full force and effect, and are
hereby ratified and confirmed.

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          (c) The execution, delivery and effectiveness of this Amendment shall
neither, except as expressly provided herein, operate as a waiver of any right,
power or remedy of the Lenders or the Agent, nor constitute a waiver of any
provision of the Credit Agreement or any other documents, instruments and
agreements executed and/or delivered in connection therewith.

     5. Costs and Expenses. The Borrower agrees to pay all reasonable costs,
fees and out-of-pocket expenses (including attorneys’ fees and expenses charged
to the Agent) incurred by the Agent and the Lenders in connection with the
preparation, arrangement, execution and enforcement of this Amendment.

     6. Governing Law. This Amendment shall be governed by and construed in
accordance with the internal laws, as opposed to the conflicts of law
provisions, of the State of New York; provided, however, that if a court,
tribunal or other judicial entity with jurisdiction over the Credit Agreement,
this Amendment and the transactions evidenced by the Loan Documents were to
disregard such choice of law, this Amendment shall be governed by and construed
in accordance with the internal laws, as opposed to the conflicts of law
provisions, of the State of Illinois.

     7. Headings. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

     8. Counterparts. This Amendment may be executed by one or more of the
parties to the Amendment on any number of separate counterparts and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of an executed counterpart of a signature page of this
Amendment by facsimile shall be effective as delivery of a manually executed
counterpart of this Amendment.

     9. No Strict Construction. The parties hereto have participated jointly in
the negotiation and drafting of this Amendment. In the event an ambiguity or
question of intent or interpretation arises, this Amendment shall be construed
as if drafted jointly by the parties hereto and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Amendment.

The remainder of this page is intentionally blank.

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     IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and
year first above written.

         

      TESORO CORPORATION,

      as the Borrower
 
       

  By:   /s/ G. Scott Spendlove

       

  Name:   G. Scott Spendlove

  Title:   Vice President, Finance and Treasurer

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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      JPMORGAN CHASE BANK, N.A. (successor by

      merger to Bank One, NA (Illinois)),

      individually, as initial LC Issuer, and as Administrative

      Agent
 
       

  By:   /s/ Helen A. Carr

  Name:   Helen A. Carr

       

  Title:   Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              BANK OF AMERICA, N.A.
 
       

  By:   /s/ Dan Hughes

       

  Name:   Dan Hughes

  Title:   Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              STATE OF CALIFORNIA PUBLIC EMPLOYEES’     RETIREMENT SYSTEM
 
       

  By:   /s/ Mike Claybar

       

  Name:   Mike Claybar

  Title:   Investment Officer

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              FORTIS CAPITAL CORP.
 
       

  By:   /s/ Darrell Holley

       

  Name:   Darrell Holley

  Title:   Managing Director
 
       

  By:   /s/ Casey Lowary

       

  Name:   Casey Lowary

  Title:   Senior Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              WELLS FARGO FOOTHILL, LLC
 
       

  By:   /s/ Patrick McCormack

       

  Name:   Patrick McCormack

  Title:   Assistant Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              LASALLE BUSINESS CREDIT, LLC
 
       

  By:   /s/ Richard A. Pierce

       

  Name:   Richard A. Pierce

  Title:   Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              PNC BANK, N.A.
 
       

  By:   /s/ Terrance O. McKinney

       

  Name:   Terrance O. McKinney

  Title:   Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              PB CAPITAL CORPORATION
 
       

  By:   /s/ Tyler J. McCarthy

       

  Name:   Tyler J. McCarthy

  Title:   Vice President
 
       

  By:   /s/ Lisa Moraglia

       

  Name:   Lisa Moraglia

  Title:   Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              GUARANTY BANK  

  By:   /s/ Jim R. Hamilton

       

  Name:   Jim R. Hamilton

  Title:   Senior Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              CALYON NEW YORK BRANCH
 
       

  By:   /s/ Olivier Audemard

       

  Name:   Olivier Audemard

  Title:   Manager Director
 
       

  By:   /s/ Philippe Soustra

       

  Name:   Philippe Soustra

  Title:   Executive Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              UBS AG, STAMFORD BRANCH
 
       

  By:   /s/ Wilfred V. Saint

       

  Name:   Wilfred V. Saint

  Title:   Director
 
       

  By:   /s/ Richard L. Tavrow

       

  Name:   Richard L. Tavrow

  Title:   Director

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              SIEMENS FINANCIAL SERVICES, INC.
 
       

  By:   /s/ Craig L. Johnson

       

  Name:   CRAIG L. JOHNSON

  Title:   VP CREDIT OPERATIONS – RISK MANAGEMENT

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              THE ROYAL BANK OF SCOTLAND plc
 
       

  By:   /s/ Patricia J. Dundee

       

  NAME:   PATRICIA J. DUNDEE

  Title:   SENIOR VICE PRESIDENT

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              U.S. BANK, NATIONAL ASSOCIATION
 
       

  By:   /s/ Thomas Visconti

       

  Name:   Thomas Visconti

  Title:   Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              HIBERNIA NATIONAL BANK
 
       

  By:   /s/ Nancy G. Moragas

       

  Name:   Nancy G. Moragas

  Title:   Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              ALLIED IRISH BANKS PLC
 
       

  By:   /s/ Martin S. Chin

       

  Name:   MARTIN S. CHIN

  Title:   Vice President
 
       

  By:   /s/ John Farrace

       

  Name:   JOHN FARRACE

  Title:   Senior Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

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              WACHOVIA BANK, NATIONAL ASSOCIATION
 
       

  By:  /s/ Catherine A. Cowan

     

  Name: CATHERINE A. COWAN

  Title: DIRECTOR

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              NATIONAL CITY BUSINESS CREDIT , INC.
 
       

  By:  /s/ Thomas W. Buda, Jr.

     

  Name: Thomas W. Buda, Jr.

  Title: Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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                  UFJ BANK LIMITED    
 
           

  By:   /s/ Clyde L. Redford    

           

  Name :   Clyde L. Redford    

  Title:   Senior Vice President    

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

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              SUMITOMO MITSUI BANKING CORP.
 
       

  By:  /s/ David A. Buck

     

  Name : David A. Buck

  Title: Senior Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              THE FROST NATIONAL BANK
 
       

  By:  /s/ Cindy Carr

     

  Name: Cindy Carr

  Title: Assistant Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              NATEXIS BANQUES POPULAIRES
 
       

  By:   /s/ Daniel Payer

       

  Name:   Daniel Payer

  Title:   Vice President
 
       

  By:   /s/ Louis P. Laville, III

       

  Name:   Louis P. Laville, III

  Title:   Vice President and Group Manager

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              THE BANK OF TOKYO-MITSUBISHI, LTD.,     HOUSTON AGENCY
 
       

  By:   /s/ John McGhee

            Name: John McGhee     Title:   Vice President and Manager

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              BANK OF SCOTLAND
 
       

  By:   /s/ Karen Weich

            Name:  Karen Weich     Title:  Assistant Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              RZB FINANCE LLC
 
       

  By:   /s/ Christoph Hoedl

            Name:   CHRISTOPH HOEDL     Title:    Group Vice President
 
       

  By:   /s/ John A. Valiska

            Name:  JOHN A. VALISKA     Title:    First Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              WEBSTER BUSINESS CREDIT CORPORATION
 
       

  By:   /s/ Joseph A. Ciciola

            Name: Joseph A. Ciciola     Title:   Assistant Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              ALASKA PACIFIC BANK
 
       

  By:   /s/ John E. Robertson

            Name:   John E. Robertson     Title:   Senior Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              FRANKLIN CLO III, LIMITED
 
       
 
  By:   /s/ David Ardini

            Name:    DAVID ARDINI     Title:      VICE PRESIDENT
 
            FRANKLIN FLOATING RATE DAILY ACCESS
FUND
 
       

  By:   /s/ Richard Hsu

            Name:   Richard Hsu     Title:     Vice President
 
            FRANKLIN FLOATING RATE MASTER SERIES
 
       

  By:   /s/ Richard Hsu

            Name:   Richard Hsu     Title:     Vice President
 
            FRANKLIN FLOATING RATE TRUST
 
       

  By:   /s/ Richard Hsu

            Name:   Richard Hsu     Title:     Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              CUMBERLAND II CLO, LTD.
 
       

  By:   Deerfield Capital Management LLC as its

      Collateral Manager
 
       

  By:   /s/ Peter Sakon

            Name: Peter Sakon     Title: Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              AIB Debt Management Ltd
 
       

  By:   /s/ Martin S. Chin

            Name: MARTIN S. CHIN     Title: Vice President
 
       

  By:   /s/ John Farrace

            Name: John Farrace     Title: Senior Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              ATRIUM CDO
 
       

  By:   /s/ David H. Lerner

            Name: DAVID H. LERNER     Title: AUTHORIZED SIGNATORY
 
            ATRIUM II
 
       

  By:   /s/ David H. Lerner

            Name: DAVID H. LERNER     Title: AUTHORIZED SIGNATORY
 
            CSAM FUNDING III
 
       

  By:   /s/ David H. Lerner

            Name: DAVID H. LERNER     Title: AUTHORIZED SIGNATORY

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              APEX (IDM) CDO I, LTD.
 
       

  By:   Babson Capital Management LLC as

      Collateral Manager
 
       

  By:   /s/ John W. Stelwagon

            Name: JOHN W. STELWAGON     Title: Managing Director
 
            BABSON CLO LTD. 2004-I
 
       

  By:   Babson Capital Management LLC as

      Collateral Manager
 
       

  By:   /s/ John W. Stelwagon

            Name: JOHN W. STELWAGON     Title: Managing Director
 
            C.M. LIFE INSURANCE COMPANY
 
       

  By:   Babson Capital Management LLC as

      Investment Sub-Advisor
 
       

  By:   /s/ John W. Stelwagon

            Name: JOHN W. STELWAGON     Title: Managing Director
 
            MAPLEWOOD (CAYMAN) LIMITED
 
       

  By:   Babson Capital Management LLC as

      Investment Manager
 
       

  By:   /s/ John W. Stelwagon

            Name: JOHN W. STELWAGON     Title: Managing Director

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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                LANDMARK V CDO LIMITED
 
            By: Aladdin Capital Management LLC as Manager
 
       

  By:   /s/ Angela Bozorgmir

       

  Name:   Angela Bozorgmir

  Title:   Director

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              BIG SKY SENIOR LOAN FUND, LTD.
BY: EATON VANCE MANAGEMENT
      AS INVESTMENT ADVISOR
 
       

  By:   /s/ Michael B. Botthof

       

  Name:   Michael B. Botthof

  Title:   Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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              GALAXY CLO 1999-1, LTD
 
       

  By: AIG Global Investment Corp. as

    Collateral Manager
 
       

  By:   /s/ W. Jeffrey Baxter

       

  Name:   W. Jeffrey Baxter

  Title:   Vice President

SIGNATURE PAGE TO AMENDMENT NO. 2
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

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EXHIBIT A
TO
AMENDMENT NO. 2

PRICING SCHEDULE

Attached

 

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PRICING SCHEDULE

                                        Applicable Fee Rate     Tier I
Utilization       Tier II Utilization       Tier III Utilization      
Commitment Fee
      0.25 %       0.375 %       0.50 %    

The following shall be used to calculate the Applicable Margin for Revolving
Loans and the Pre-Funded Letter of Credit Fee Rate at any time the Borrower’s
senior long-term secured indebtedness (without giving effect to any credit
enhancement) is rated BBB- or better by S&P or Baa3 or better by Moody’s.

                                                  Applicable                    
                Margin for                                     Revolving Loans  
  Level I Status       Level II Status       Level III Status       Level IV
Status      
Eurodollar Rate
      1.50 %       1.75 %       2.00 %       2.25 %    
Floating Rate
      0.00 %       0.00 %       0.25 %       0.50 %    

                                                        Level I Status      
Level II Status       Level III Status       Level IV Status      
Pre-Funded Letter of Credit Fee Rate
      1.50 %       1.75 %       2.00 %       2.25 %    

The following shall be used to calculate the Applicable Margin for Revolving
Loans and the Pre-Funded Letter of Credit Fee Rate at any time the Borrower’s
senior long-term secured indebtedness (without giving effect to any credit
enhancement) is rated BB+ by S&P or Ba1 by Moody’s and the Borrower does not
qualify for pricing as set forth in the immediately preceding grid.

                                                  Applicable                    
                Margin for                                     Revolving Loans  
  Level I Status       Level II Status       Level III Status       Level IV
Status      
Eurodollar Rate
      1.75 %       2.00 %       2.25 %       2.50 %    
Floating Rate
      0.00 %       0.25 %       0.50 %       0.75 %    

 

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                                                        Level I Status      
Level II Status       Level III Status       Level IV Status      
Pre-Funded Letter of Credit Fee Rate
      1.75 %       2.00 %       2.25 %       2.50 %    

The following shall be used to calculate the Applicable Margin for Revolving
Loans and the Pre-Funded Letter of Credit Fee Rate at any time the Borrower’s
senior long-term secured indebtedness (without giving effect to any credit
enhancement) is lower than BB+ by S&P or Ba1 by Moody’s and the Borrower does
not qualify for pricing as set forth in the two immediately preceding pricing
grids.

                                                  Applicable                    
                Margin for                                     Revolving Loans  
  Level I Status       Level II Status       Level III Status       Level IV
Status      
Eurodollar Rate
      2.00 %       2.25 %       2.50 %       2.75 %    
Floating Rate
      0.25 %       0.50 %       0.75 %       1.00 %    

                                                        Level I Status      
Level II Status       Level III Status       Level IV Status      
Pre-Funded Letter of Credit Fee Rate
      2.00 %       2.25 %       2.50 %       2.75 %    

     For the purposes of this Schedule, the following terms have the following
meanings, subject to the final paragraph of this Schedule:

     “Level I Status” exists at any date if, as of the last day of the
applicable fiscal quarter of the Borrower, average daily Excess Availability for
such fiscal quarter was greater than 45% of the average monthly Borrowing Base
for such fiscal quarter.

     “Level II Status” exists at any date if, as of the last day of the
applicable fiscal quarter of the Borrower, (i) the Borrower has not qualified
for Level I Status and (ii) average daily Excess Availability for such fiscal
quarter was less than or equal to 45% of the average monthly Borrowing Base for
such fiscal quarter but greater than 30% of the average monthly Borrowing Base
for such fiscal quarter.

     “Level III Status” exists at any date if, as of the last day of the
applicable fiscal quarter, (i) the Borrower has not qualified for Level I Status
or Level II Status and (ii) average daily Excess Availability for such fiscal
quarter was less than or equal to 30% of the average monthly

 

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Borrowing Base for such fiscal quarter but greater than 15% of the average
monthly Borrowing Base for such fiscal quarter.

     “Level IV Status” exists at any date if, as of the last day of the
applicable fiscal quarter, (i) the Borrower has not qualified for Level I
Status, Level II Status, or Level III Status and (ii) average daily Excess
Availability for such fiscal quarter was less than or equal to 15% of the
average monthly Borrowing Base for such fiscal quarter.

     “Status” means either Level I Status, Level II Status, Level III Status or
Level IV Status.

     “Tier I Utilization” means, on any date of determination, the average
Aggregate Outstanding Revolving Loan Credit Exposure on such date was greater
than 66% of the Aggregate Revolving Loan Commitment on such date.

     “Tier II Utilization” means, on any date of determination, the average
Aggregate Outstanding Revolving Loan Credit Exposure on such date was greater
than or equal to 33-1/3rd% of the Aggregate Revolving Loan Commitment on such
date but less than or equal to 66% of the Aggregate Revolving Loan Commitment on
such date.

     “Tier III Utilization” means, on any date of determination, the average
Aggregate Outstanding Revolving Loan Credit Exposure on such date was less than
33-1/3rd% of the Aggregate Revolving Loan Commitment on such date.

The Applicable Margin, the Applicable Fee Rate, and the Pre-Funded Letter of
Credit Fee Rate shall be determined in accordance with the foregoing tables
based on the Borrower’s Status for the applicable fiscal quarter. Such Status
shall be determined based upon the Interim Collateral Reports and Monthly
Collateral Reports delivered for such fiscal quarter. Adjustments, if any, to
the Applicable Margin, the Applicable Fee Rate and the Pre-Funded Letter of
Credit Fee Rate shall be effective five Business Days after the Agent has
received all of the applicable Interim Collateral Reports and Monthly Collateral
Reports. If the Borrower fails to deliver such Interim Collateral Reports and
Monthly Collateral Reports to the Agent at the time required pursuant to
Section 6.1, then the Applicable Margin, the Applicable Fee Rate, and the
Pre-Funded Letter of Credit Fee Rate shall be the highest Applicable Margin,
Applicable Fee Rate, and Pre-Funded Letter of Credit Fee Rate set forth in the
foregoing tables until the date on which such Interim Collateral Reports and
Monthly Collateral Reports are so delivered.