Exhibit 10.1
AMENDMENT NO. 2
TO
FOURTH AMENDED AND RESTATED CREDIT AGREEMENT
          This AMENDMENT NO. 2 to FOURTH AMENDED AND RESTATED CREDIT AGREEMENT
(the “Amendment”), dated as of May 28, 2009, 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,
National Association, 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
Fourth Amended and Restated Credit Agreement dated as of May 11, 2007 (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 party hereto 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 party hereto 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 “Alternate Base Rate” set forth in Section 1.1 of the
Credit Agreement is hereby amended in its entirety as follows:
“Alternate Base Rate” means, for any date, a rate per annum equal to the highest
of (i) the Prime Rate for such day, (ii) the Federal Funds Effective Rate plus
1/2% per annum for such day, and (iii) the Eurodollar Rate (without giving
effect to the Applicable Margin) for a one month Interest Period on such day (or
if such day is not a Business Day, the immediately preceding Business Day) plus
1%; provided that, for the avoidance of doubt, the Eurodollar Rate for any day
shall be based on the rate appearing on

 

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the Reuters Screen LIBOR01 Page 1 (or on any successor or substitute page) at
approximately 11:00 a.m. London time on such day. Any change in the Alternate
Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or
the Eurodollar Rate shall be effective from and including the effective date of
such change in the Prime Rate, the Federal Funds Effective Rate or the
Eurodollar Rate, respectively.
     (b) The definition of “Applicable Fee Rate” set forth in Section 1.1 of the
Credit Agreement is hereby amended in its entirety as follows:
“Applicable Fee Rate” means, with respect to the Commitment Fee at any time,
0.375% per annum.
     (c) Section 1.1 of the Credit Agreement is hereby amended to insert
alphabetically therein the following new defined term:
“Defaulting Lender” means any Lender, as determined by the Agent, that has
(a) failed to fund any portion of its Loans or participations in Facility LCs,
Non-Ratable Loans or Collateral Protection Advances within three Business Days
of the date required to be funded by it hereunder, (b) notified the Borrower,
the Agent, the LC Issuer, the Non-Ratable Lender or any Lender in writing that
it does not intend to comply with any of its funding obligations under this
Agreement or has made a public statement to the effect that it does not intend
to comply with its funding obligations under this Agreement or under other
agreements in which it commits to extend credit, (c) failed, within three
Business Days after request by the Agent, to confirm that it will comply with
the terms of this Agreement relating to its obligations to fund prospective
Loans and participations in then outstanding Facility LCs, Collateral Protection
Advances and Non-Ratable Loans, (d) otherwise failed to pay over to the Agent or
any other Lender any other amount required to be paid by it hereunder within
three Business Days of the date when due, unless the subject of a good faith
dispute, or (e) (i) become or is insolvent or has a parent company that has
become or is insolvent or (ii) become the subject of a bankruptcy or insolvency
proceeding, or has had a receiver, conservator, trustee or custodian appointed
for it, or has taken any action in furtherance of, or indicating its consent to,
approval of or acquiescence in any such proceeding or appointment or has a
parent company that has become the subject of a bankruptcy or insolvency
proceeding, or has had a receiver, conservator, trustee or custodian appointed
for it, or has taken any action in furtherance of, or indicating its consent to,
approval of or acquiescence in any such proceeding or appointment; provided,
that the mere ownership by a governmental authority of a Lender’s or its parent

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company’s equity interests shall not result in a Lender becoming a Defaulting
Lender under this clause (ii).
     (d) Article II of the Credit Agreement is hereby amended to insert
immediately at the end thereof the following Section 2.21:
Section 2.21. Defaulting Lenders. Notwithstanding any provision of this
Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the
following provisions shall apply for so long as such Lender is a Defaulting
Lender:
(a) if any Facility LCs (including Reimbursement Obligations in respect
thereof), Collateral Protection Advances or Non-Ratable Loans are outstanding at
the time a Lender is a Defaulting Lender, the Borrower shall within one Business
Day following notice by the Agent (i) prepay the Non-Ratable Loans or Collateral
Protection Advances, as applicable, or, if agreed by the Non-Ratable Lender or
the Agent, as applicable, cash collateralize the outstanding principal amount of
the Non-Ratable Loans or Collateral Protection Advances (or ratable
participations therein), as applicable, of the Defaulting Lender on terms
satisfactory to the Non-Ratable Lender or the Agent, as applicable, and
(ii) cash collateralize such Defaulting Lender’s L/C Obligations in accordance
with the procedures set forth in Sections 2.19.11 and 8.1 for so long as such
Facility LCs (including Reimbursement Obligations in respect thereof) remain
outstanding (with the understanding that such cash collateralization and Liens
granted in respect thereof shall be deemed permitted under this Agreement
pursuant to Section 6.15.1); and
(b) the Non-Ratable Lender shall not be required to fund any Non-Ratable Loan,
the Agent shall not be required to fund any Collateral Protection Advance, and
the LC Issuer shall not be required to issue, amend, extend, renew or increase
any Facility LC unless it is satisfied that cash collateral will be provided by
the Borrower in accordance with Section 2.21(a).
     (e) Section 6.14.6 of the Credit Agreement is hereby amended in its
entirety as follows:
6.14.6 Indebtedness not described in or otherwise subject to Sections 6.14.1
through 6.14.5 that is unsecured and that does not at any time exceed an
aggregate amount equal to $600,000,000.
     (f) Section 6.14.7 of the Credit Agreement is hereby amended in its
entirety as follows:

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6.14.7 Indebtedness in an aggregate amount not to exceed $600,000,000 at any
time arising under or in connection with Letters of Credit (other than Facility
LCs) issued for the account of the Borrower or any Subsidiary thereof; provided,
that such Letters of Credit shall either be used in connection with the
Borrower’s or such Subsidiary’s acquisition of Petroleum Inventory outside of
the United States of America or for general corporate purposes in the ordinary
course of business.
     (g) Section 9.8 of the Credit Agreement is hereby amended in its entirety
as follows:
9.8 Accounting. Except as provided to the contrary herein, all accounting terms
used in the calculation of any financial covenant or test shall be interpreted
and all accounting determinations hereunder in the calculation of any financial
covenant or test shall be made in accordance with Agreement Accounting
Principles. If any changes in US GAAP are hereafter required or permitted and
are adopted by the Borrower or any of its Subsidiaries with the agreement of its
independent certified public accountants and such changes result in a change in
the method of calculation of any of the financial covenants, tests, restrictions
or standards herein or in the related definitions or terms used therein
(“Accounting Changes”), the parties hereto agree, at the Borrower’s request, to
enter into negotiations, in good faith, in order to amend such provisions in a
credit neutral manner so as to reflect equitably such changes with the desired
result that the criteria for evaluating the Borrower’s and its Subsidiaries’
financial condition shall be the same after such changes as if such changes had
not been made; provided, however, until such provisions are amended in a manner
reasonably satisfactory to the Agent and the Required Lenders, no Accounting
Change shall be given effect in such calculations. In the event such amendment
is entered into, all references in this Agreement to Agreement Accounting
Principles shall mean US GAAP as of the date of such amendment. Notwithstanding
the foregoing or anything to the contrary set forth herein, (x) all financial
statements to be delivered by the Borrower pursuant to Section 6.1 shall be
prepared in accordance with US GAAP in effect at such time and (y) all terms of
an accounting or financial nature used herein or in any other Loan Document
shall be construed, and all computations of amounts and ratios referred to
herein or in any other Loan Document shall be made, without giving effect to any
election under Statement of Financial Accounting Standards 159 (or any other
Financial Accounting Standard having a similar result or effect) to value any
Indebtedness or other liabilities of the Borrower or any Subsidiary at “fair
value”, as defined therein.

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     (h) The Pricing Schedule to the Credit Agreement is hereby amended in its
entirety pursuant to the Pricing Schedule attached hereto as Exhibit A.
     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 the Required 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;
          (c) the Agent shall have received, for the account of each Lender
which delivers its executed signature page hereto by such time as is required by
the Agent, an amendment fee equal to 0.125% of such Lender’s Revolving Loan
Commitment under the Credit Agreement; and
          (d) the Borrower shall have paid all fees and expenses of the Agent
(including, to the extent invoiced, attorneys’ fees and expenses) in connection
with this Amendment.
     3. Representations and Warranties of the Borrower. The Borrower hereby
represents and warrants as follows:
          (a) The Credit Agreement as previously executed and amended and as
amended hereby 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) (i) The representations and warranties contained in Article V of
the Credit Agreement are true and correct as of the date hereof except (x) with
respect to Sections 5.5 and 5.7 of the Credit Agreement, the representations and
warranties set forth in such Sections shall have been true and correct on and as
of the date of the most recent Form 10-K or Form 10-Q filing, as applicable,
made by the Borrower with the U.S. Securities and Exchange Commission, and
(y) with respect to any other representation and warranty set forth in Article V
of the Credit Agreement, to the extent such representation or warranty is stated
to relate solely to an earlier date, such representation or warranty shall have
been true and correct on and as of such earlier date and (ii) no event shall
have occurred and then be continuing which constitutes a Default or an Unmatured
Default.
          (c) The modifications contemplated by this Amendment are permitted
under the terms of indentures and other agreements referenced in Section 9.18 of
the Credit Agreement that remain in effect as of the date hereof.
     4. Effect on the Credit Agreement.

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          (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.
          (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/ GREGORY A. WRIGHT       Name:   Gregory A. Wright      Title:  
Executive Vice President and Chief
Financial Officer     

signature page to amendment no. 2
to fourth amended and restated credit agreement

 

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            JPMORGAN CHASE BANK,
NATIONAL ASSOCIATION,
individually, and initial LC Issuer, and as Administrative
Agent
      By:   /s/ J. DEVIN MOCK       Name:   J. Devin Mock      Title:   Vice
President     

signature page to amendment no. 2
to fourth amended and restated credit agreement

 

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            BANK OF AMERICA, N.A.,
as a Co-Documentation Agent and as a Lender
      By:   /s/ JOHN TODD       Name:   John Todd      Title:   Executive Vice
President   

 

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            THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,
as a Co-Documentation Agent and as a Lender
      By:   /s/ LINDA TERRY       Name:   Linda Terry      Title:   Authorized
Signatory     

 

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            FORTIS CAPITAL CORP.,
as a Co-Documentation Agent and as a Lender
      By:   /s/ DARRELL HOLLEY       Name:   Darrell Holley      Title:  
Managing Director              By:   /s/ CASEY LOWARY       Name:   Casey
Lowary      Title:   Director     

 

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            FIRST COMMERICAL BANK, LOS ANGELES
BRANCH, as a Lender
      By:   /s/ CLIFF LIN       Name:   Cliff Lin      Title:   Vice President
and General Manager     

 

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            THE ROYAL BANK OF SCOTLAND plc,
as a Co-Documentation Agent and as a Lender
      By:   /s/ BRIAN D. WILLIAMS       Name:   Brian D. Williams      Title:  
Vice President     

 

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            BNP PARIBAS,
as a Lender
      By:   /s/ LARRY ROBINSON       Name:   Larry Robinson      Title:  
Director              By:   /s/ COURTNEY KUBESCH       Name:   Courtney Kubesch 
    Title:   Vice President     

 

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            CALYON NEW YORK BRANCH,
as a Lender
      By:   /s/ DAVID GURGHIGIAN       Name:   David Gurghigian      Title:  
Managing Director              By:   /s/ MICHAEL WILLIS       Name:   Michael
Willis      Title:   Managing Director     

 

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                  CITIBANK, N.A.,         as a Lender    
 
           
 
  By:   /s/ AMY PINCU    
 
                Name: Amy Pincu         Title: Vice President    

 

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                  MIZUHO CORPORATE BANK, LTD.,         as a Lender    
 
           
 
  By:   /s/ RAYMOND VENTURA    
 
                Name: Raymond Ventura         Title: Deputy General Manager    

 

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                  NATIXIS,         as a Lender    
 
           
 
  By:   /s/ LOUIS P. LAVILLE, III    
 
                Name: Louis P. Laville, III         Title: Managing Director    
 
           
 
  By:   /s/ DONOVAN BROUSSARD    
 
                Name: Donovan Broussard         Title: Managing Director    

 

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                  RZB FINANCE, LLC,         as a Lender    
 
           
 
  By:   /s/ SHIRLEY RITCH    
 
                Name: Shirley Ritch         Title: Vice President    
 
           
 
  By:   /s/ JOHN A. VALISKA    
 
                Name: John A. Valiska         Title: First Vice President    

 

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                  THE BANK OF NOVA SCOTIA,         as a Lender    
 
           
 
  By:   /s/ ANDREW OSTROV    
 
                Name: Andrew Ostrov         Title: Director    

 

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                  SUMITOMO MITSUI BANKING CORP.,         as a Lender    
 
           
 
  By:   /s/ MASAKAZU HASEGAWA    
 
                Name: Masakazu Hasegawa         Title: General Manager    

 

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                  WELLS FARGO FOOTHILL, LLC,         as a Lender    
 
           
 
  By:   /s/ RINA SHINODA    
 
                Name: Rina Shinoda         Title: Vice President    

 

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                  GMAC COMMERICAL FINANCE, LLC,         as a Lender    
 
           
 
  By:   /s/ DENNIS BAELIS    
 
                Name: Dennis Baelis         Title: Managing Director    

 

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                  NATIONAL CITY BUSINESS CREDIT, INC,         as a Lender    
 
           
 
  By:   /s/ TODD W. MILENIUS    
 
                Name: Todd W. Milenius         Title: Vice President    

 

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                  PNC BANK, N.A.,         as a Lender    
 
           
 
  By:   /s/ E. NIKI STONE    
 
                Name: E. Niki Stone         Title: Vice President-PNCBC    

 

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                  REGIONS BUSINESS CAPITAL,         as a Lender    
 
           
 
  By:   /s/ ALAN SCHNACKE    
 
                Name: Alan Schnacke         Title: Senior Vice President    

 

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                  SIEMENS FINANCIAL SERVICES, INC.,         as a Lender    
 
           
 
  By:   /s/ ANTHONY CASCIANO    
 
                Name: Anthony Casciano         Title: Managing Director    
 
           
 
  By:   /s/ JAMES TREGILLIES    
 
                Name: James Tregillies         Title: Vice President    

 

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                  SOCIÉTÉ GÉNÉRALE,         as a Lender    
 
           
 
  By:   /s/ CHUNG-TAEK OH    
 
                Name: Chung-Taek Oh         Title: Vice President    
 
           
 
  By:   /s/ BARBARA PAULSEN    
 
                Name: Barbara Paulsen         Title: Managing Director    

 

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                  COMERICA BANK,         as a Lender    
 
           
 
  By:   /s/ JOEY POWELL    
 
                Name: Joey Powell         Title: Vice President    

 

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                  THE FROST NATIONAL BANK,         as a Lender    
 
           
 
  By:   /s/ SARAH CERNOSEK    
 
                Name: Sarah Cernosek         Title: Vice President    

 

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            GUARANTY BANK,
as a Lender
      By:   /s/ KELLY L. ELMORE III       Name: Kelly L. Elmore III      
Title: Senior Vice President     

 

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            U.S. BANK NATIONAL ASSOCIATION,
as a Lender
      By:   /s/ RONALD GIBLIN       Name: Ronald Giblin      Title: Vice
President     

 

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            ALLIED IRISH BANKS, PLC,
as a Lender
      By:   /s/ MARTIN CHIN       Name: Martin Chin      Title: Senior Vice
President              By:   /s/ BRENT PHILLIPS       Name: Brent Phillips     
Title: Vice President     

 

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            AMEGY BANK NATIONAL ASSOCIATION,
as a Lender
      By:   /s/ MARK A. SERICE       Name: Mark A. Serice       Title: Vice
President     

 

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            CAPITAL ONE, NATIONAL ASSOCIATION,
as a Lender
      By:   /s/ NANCY M. MAK       Name: Nancy M. Mak       Title: Vice
President     

 

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            UPS CAPITAL CORPORATION,
as a Lender
      By:   /s/ MICHAEL R. O'NEAL       Name: Michael R. O'Neal      
Title: Senior Credit Officer     

 

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            WEBSTER BUSINESS CREDIT CORPORATION,
as a Lender
      By:   /s/ JULIAN VIGDER       Name: Julian Vigder      Title: AVP     

 

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            BANK HAPOALIM,
as a Lender
      By:   /s/ JAMES P. SURLESS       Name: James P. Surless       Title: Vice
President              By:   /s/ CHARLES MCLAUGHLIN       Name: Charles
McLaughlin      Title: Senior Vice President   

 

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EXHIBIT A
TO
AMENDMENT NO. 2
PRICING SCHEDULE
Attached

 

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PRICING SCHEDULE
     The following shall be used to calculate the Applicable Margin for
Revolving Loans during the applicable period when 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 %     1.625 %     1.875 %     2.125 %
Floating Rate
    0.50 %     0.625 %     0.875 %     1.125 %

     The following shall be used to calculate the Applicable Margin for
Revolving Loans during the applicable period when 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
    1.625 %     1.875 %     2.125 %     2.375 %
Floating Rate
    0.625 %     0.875 %     1.125 %     1.375 %

     The following shall be used to calculate the Applicable Margin for
Revolving Loans during the applicable period when the Borrower’s senior
long-term secured indebtedness (without giving effect to any credit enhancement)
is rated 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
    1.875 %     2.125 %     2.375 %     2.625 %
Floating Rate
    0.875 %     1.125 %     1.375 %     1.625 %

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

 

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     “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 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.
The Applicable Margin 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 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 shall be the highest Applicable Margin
set forth in the foregoing tables until the date on which such Interim
Collateral Reports and Monthly Collateral Reports are so delivered. In the event
that any financial statement or certificate required by Section 6.1.1, 6.1.2,
6.1.3 or 6.1.4 is shown to be inaccurate (regardless of whether this Agreement
or the financing commitments are in effect), and such inaccuracy, if corrected,
would have led to the application of a higher Applicable Margin for any period
(an “Applicable Period”) than the Applicable Margin applied for such Applicable
Period: (x) the Borrower shall immediately deliver to the Agent a correct
certificate for such Applicable Period, (y) the Applicable Margin for such
Applicable Period shall be determined by reference to such certificate, and
(z) the Borrower shall immediately pay to the Agent the accrued additional
interest owing as a result of such increased Applicable Margin for such
Applicable Period, which payment shall be promptly applied by the Agent in
accordance with the terms hereof. This provision shall not limit any other
rights and remedies of the Agent and the Lenders hereunder.

 

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EXHIBIT B
TO
AMENDMENT NO. 2
FORM OF REAFFIRMATION
Attached

 

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AFFIRMATION OF LOAN DOCUMENTS
          Reference is hereby made to the Fourth Amended and Restated Credit
Agreement, dated as of May 11, 2007 (as the same may be amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
by and among Tesoro Corporation (the “Borrower”), the financial institutions
from time to time party thereto as Lenders (the “Lenders”) and JPMorgan Chase
Bank, National Association, as Administrative Agent (the “Agent”). Capitalized
terms used in this Affirmation of Loan Documents and not defined herein shall
have the meanings given to them in the Credit Agreement.
          Each of the undersigned hereby acknowledges receipt of a copy of
Amendment No. 2 to Fourth Amended and Restated Credit Agreement, which amends
the Credit Agreement, and affirms the terms and conditions of each Loan Document
executed by it, including, without limitation, the Security Agreement and the
Guaranty, and acknowledges and agrees that each such Loan Document executed by
it in connection with the Prior Credit Agreement remains in full force and
effect and is hereby reaffirmed, ratified and confirmed.
          Each reference to the “Credit Agreement” contained in the
above-referenced documents shall be a reference to the Credit Agreement as the
same may from time to time hereafter be amended, modified, supplemented or
restated.
Dated: May 28, 2009
*******

 

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                  GOLD STAR MARITIME COMPANY   TESORO NORTHSTORE COMPANY    
TESORO ALASKA COMPANY             TESORO AVIATION COMPANY             TESORO
COMPANIES, INC.   By:   /s/ CHARLES S. PARRISH     TESORO ENVIRONMENTAL
RESOURCES COMPANY   Name: Charles S. Parrish     TESORO FAR EAST MARITIME
COMPANY   Title: Executive Vice President, General     TESORO FINANCIAL SERVICES
   HOLDING COMPANY   Counsel and Secretary     TESORO HAWAII CORPORATION  
SMILEY’S SUPER SERVICE, INC.     TESORO MARITIME COMPANY             TESORO
REFINING AND MARKETING COMPANY   By:   /s/ P. SCOTT RAMMELL     TESORO TRADING
COMPANY   Name: P. Scott Rammell     TESORO VOSTOK COMPANY   Title: Vice
President, General Counsel and Secretary     TESORO WASATCH, LLC            
TESORO SIERRA PROPERTIES, LLC             TESORO SOUTH COAST COMPANY, LLC      
      TESORO WEST COAST COMPANY, LLC

           
By:
  /s/ GREGORY A. WRIGHT            
 
                Name: Gregory A. Wright             Title: Executive Vice
President and Chief Financial Officer            

SIGNATURE PAGE TO AFFIRMATION OF LOAN DOCUMENTS