Document:

exv10w5

Exhibit 10.5

FY 2009 Sales Incentive Plan

Plan Date:

Effective Date:

Name:

Position Type: EXECUTIVE SALES MANAGEMENT

Position Name:

Geographic Territory:

	 	 	 
	Base Salary: As in effect from time to
time

	 	Target Incentive: 70% of Base Salary

Performance Measures

Products, Solutions, Services, and Point of Sale Maintenance (PSSPOSM) Bookings Goal is
                     USD annual, and will achieve 20% of Target Incentive

Revenue Goal is                      USD annual, and will achieve 40% of Target Incentive

Contribution Margin Goal is                      USD annual, and will achieve 40% of Target
Incentive

Bonus Attainment:

Products, Solutions, Services, and Point of Sale Maintenance Bookings Goal

For all bonusable sales to existing and new customers, bonuses will be paid in accordance with the
Goal Matrix Table below, except as otherwise noted in the Payout Mechanics Section below. Bonuses
under the Goal Matrix Table are paid out linearly from one step level to the next step level based
on the percentage attainment of the PSSPOSM Bookings Goal. At 100 percent attainment of the
PSSPOSM Bookings Goal, the total aggregate PSSPOSM Bookings bonus payments will equal 20 percent of
the Target Incentive (8.24 percent of Total Target Compensation).

Revenue Goal

For all bonusable revenue from existing and new customers, bonuses will be paid in accordance with
the Goal Matrix Table below, except as otherwise noted in the Payout Mechanics Section below.
Bonuses under the Goal Matrix Table are paid out linearly from one step level to the next step
level based on the percentage attainment of the Revenue Goal. At 100 percent attainment of the
Revenue Goal, the total aggregate bonus payments will equal 40 percent of the Target Incentive (16.47 percent of Total Target Compensation).

Contribution Margin Goal

For all bonusable contribution margin, bonuses will be paid in accordance with the Goal Matrix
Table below, except as otherwise noted in the Payout Mechanics Section below. Bonuses under the
Goal Matrix Table are paid out linearly from one step level to the next step level based on the
percentage attainment of the Contribution Margin Goal. At 100 percent attainment of the
Contribution Margin Goal, the total aggregate bonus payments will equal 40 percent of the Target
Incentive (16.47 percent of Total Target Compensation).

 

 

Goal Matrix Table

	 	 	 	 	 	 	 	 	 
	Step	 	Attainment of	 	Aggregate % of
	Level	 	Applicable Goal	 	Incentive Paid
	1

	 	 	45	%	 	 	40	%
	2

	 	 	100	%	 	 	100	%
	3

	 	 	110	%	 	 	125	%
	4

	 	 	200	%	 	 	300	%

Payout Mechanics:

    Products, Solutions, Services, and Point of Sale Maintenance, Revenue, and Contribution Margin

Bonuses for sales of PSSPOSM (other than Intervoice Hosted Solutions and Application Service
Provider Bookings), Revenue, and Contribution Margin will be paid as follows:

Bookings Payment: 100 percent of the bookings bonus will be paid in the month following
the booking.

Revenue Payment: 100 percent of the revenue bonus will be paid in the month following
(subject to definitive earnings release) the end of the quarter in which the Revenue was
recognized.

Contribution Margin Payment: 100 percent of the contribution margin bonus will be paid in
the month following (subject to definitive earnings release) the end of the quarter in which the
Contribution Margin payment was earned.

Intervoice Hosted Solutions (IHS)

Bonuses under a “New” IHS contract will be paid 75 percent in the month following the booking
date, and the remaining 25 percent paid in the month following the midpoint of the contract term,
which begins with the month that services are first provided in a production environment, i.e.,
for 36 month contract term this payment will be made at 18 months following the customer
acceptance date. The contract term shall not exceed 36 months for IHS contracts that meet the
Quoted Margin (QM) and Net Present Value (NPV) pro forma requirements, and 24 months for IHS
contracts that do NOT meet the QM or NPV pro forma requirements, beginning with the month that
services are first provided in a production environment. In addition, if a contract contains an
early out provision, the booking amount used to determine the 75 percent and 25 percent payments
above will be limited to the committed period of months (months for which the customer cannot
terminate without paying substantial liquidated damages) set forth in the agreement. If the
agreement also contains a provision to continue under the contract on a month-to-month basis
following the committed period, the 75 percent and 25 percent payments will be adjusted to reflect
the incremental Booking Value up through the Term of the Contract, and the associated
month-to-month payments will be made accordingly.

Bonuses under a “Mid-Term Renewals/Renegotiated” (IHM) IHS contract will be paid 75 percent of the
NET booking in the month following acceptance of the order subject to the same terms, conditions,
and pro forma requirements set out in Paragraph 1 of this section. No other payments will be made.

 

 

Bonuses under an “Auto Renewal at Contract Term” (IHA) IHS contract will be paid 75 percent in the
month following the date of auto renewal subject to the same terms, conditions, and pro forma
requirements in Paragraph 1 of this section. No other payments will be made.

Application Services Provider (ASP)

Bonuses under an ASP Contract will be paid 100 percent based upon the aggregate actual monthly
billing amount, setup fees, and consulting services fees in the month following the invoice date
subject to the QM and NPV pro forma requirements. No bonuses will be accrued or paid for sales
orders that do not meet the pro forma requirements.

General Plan Information:

This plan only applies to orders booked in Fiscal Year 2009.

Please refer to the attached Exhibit A, Sales Incentive Plan Guidelines — Executive Sales
Management, for further information about your sales incentive plan (the “Sales Incentive Plan
Guidelines”). The Sales Incentive Plan Guidelines are incorporated into this Sales Incentive Plan
Template, and this Sales Incentive Plan Template is subject to, and qualified in its entirety by,
the Sales Incentive Plan Guidelines.

The Exhibit A, Sales Incentive Plan Guidelines are an integral part of this Sales Incentive Plan,
and you should carefully review such guidelines before you accept this plan. The Sales Incentive
Plan Guidelines contain significant provisions that modify and supplement your sales incentive
plan, including without limitation, provisions related to payment of booking bonuses for sales to
cash based customers, booking bonuses for blue bird sales, booking bonuses for sales splits and
territory realignments, and the Company’s right under certain circumstances to recoup bonuses that
have been paid but not yet earned.

Neither this document nor any other agreement by the Company will create a specific term or tenure
of employment for a specified term, and is not to be construed as a contract limiting the
prerogative of the Company to terminate the employment relationship. The Company reserves the
right to modify this Sales Incentive Plan and the Sales Incentive Plan Guidelines at any time and
at its sole discretion without prior notice.

Please sign below acknowledging your receipt of the Sales Incentive Plan and your acknowledgement
that you have read and agree to the charge back provision as detailed in the Sales Incentive Plan
Guidelines. This Incentive Plan is not valid until the Plan is signed by you, your manager and
Corporate Compensation. After all signatures have been obtained, a copy will be returned to you for
your records.

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Date:	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Date:	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Date:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 
	Corporate Compensation	 	 	 	 	 	 	 	 	 	 

 

 

Exhibit A

FY 2009 Sales Incentive Plan Guidelines

Executive Sales Management

	1.	 	Definitions
	 
	 	 	Application Service Provider (ASP): ASP offers customers with the flexibility to deploy self
service solutions using non dedicated Intervoice infrastructure utilizing a shared architecture.
Monthly billing is generally based on the number of ports or minutes of usage.
	 
	 	 	Blue Bird: A Blue Bird or windfall is a sale that was realized outside of the normal
influencing role of the sales executive. In such circumstances, at the sole discretion of the
Sales Compensation Review Committee the Blue Bird may be excluded from normal incentive
compensation treatment.
	 
	 	 	Booking: A binding sales order or group of sales orders generally all containing the same order
date which are part of the Booking under either a customer PO or a signed Schedule A, where a PO
is not required under the terms of the customer agreement, generally containing a
customer/Company agreed-to ship date, along with a Statement of Work (SOW) approved by
Operations, and priced at or above the Company’s approved margin requirements for the applicable
product, solution, service, or maintenance.
	 
	 	 	Cash Based Customer (CBC): Is any customer for whom the Company chooses to recognize revenue
when cash is received, and generally applies to certain customers located in countries where the
credit risk is high due to the financial condition of the customers, the political or financial
condition of the country, or both.
	 
	 	 	Contribution Margin: Gross margin less departmental budget controllable expenses.
	 
	 	 	Intervoice Hosted Solution (IHS): IHS offers customers with the flexibility to deploy self
service/contact center solutions using dedicated infrastructure deployed at their site or ours.
Customer select the option that is best for their specific deployment requirements, mandated
levels of service, predictability of call volume, and capacity requirements. Intervoice focuses
on providing services that target large enterprises as well as offering solutions that remove
the barrier to entry or technology advancement for the small to mid-tier market players.

	 	•	 	Intervoice offers levels of service for its customers based on Service Level Agreements:

	 	•	 	Premier — offering service level of 99.9% (based on call completion), 24X7
technical support access, network and application monitoring, security monitoring,
software and hardware maintenance and upgrades, reporting, managed VPN, and annual
performance audits. Offered in a dedicated and shared environment.
	 
	 	•	 	Premier Plus — offers customers a service level of 99.99%, includes all the
components of the premier program, plus an assigned support team, quarterly account
review, system performance audits, and the ability to drill down into the results and
performance reporting using our iWatch application monitoring portal. Offered in a
dedicated and shared environment.
	 
	 	•	 	Hosted Enhanced Services include:

	 	•	 	Monitoring and Management Services — providing premise based customers
the ability to monitor the performance of their voice applications on a 24X7 basis.
	 
	 	•	 	Hosted Security Services — providing premise based customers with
security service, monitoring and scanning for network and system vulnerabilities.

 

 

	 	•	 	Our Premier and Premier plus IHS offerings can be deployed in a fully managed solution
or a co-managed solution (premise based managed) and as a dedicated or shared/multi-tenant
environment. Each customer solution is customized to meet their specific technical and
service requirements.

	 	 	Net Present Value (NPV): NPV is a way of comparing the value of money now with the value of
money in the future. A dollar today is worth more than a dollar in the future, because inflation
erodes the buying power of the future money, while money available today can be invested and
grow. NPV uses a discount factor selected by the Sales Compensation Review Committee to compare
the value of a dollar today versus the value of that same dollar in the future after taking
inflation and an expected return into account. In financial terms, NPV is the present value of
an investment’s future net cash flows minus the initial investment where present value is
defined as the current value of one or more future cash payments, discounted at some appropriate
interest rate.
	 
	 	 	Products, Solutions, Services, and Point of Sale (POS) Maintenance: Defined as the major
offerings that the Company uses to categorize what it sells to its customers. More
specifically, Products are defined as all components contained in the Intervoice Voice Portal
platform or IP Contact center product. Solutions are defined as custom and packaged
applications under Voice Portal and IP Contact Center, packaged applications under Voice
Express, Messaging, and Payment, Portal, and SMSC. Services are defined as hosted solutions
(both IHS and ASP), consulting services, and technical training. POS Maintenance is defined as
RealCare Advantage Network and Enterprise Support Plans when paid for by the customer up front
at the point of sale.
	 
	 	 	Quoted Margin (QM): (also known as gross margin) Reveals how much a company earns taking into
consideration the direct costs that it incurs for producing its products and/or services. Gross
margin is a good indication of how profitable a company is at the most fundamental level. In
financial terms, gross margin is equal to gross income divided by net sales, and is expressed as
a percentage. Gross income is defined as total revenues less the direct costs associated with
producing those revenues.
	 
	 	 	RealCare Advantage Network and Enterprise Support Plans: Includes three new and expanded
support plans with varying levels of responsiveness, proactive and preventive features.

	 	•	 	Standard: Defined as RealCare service for enterprise solutions customers interested in
a low cost plan that provides for basic telephone helpdesk, support during customer local
business hours plus on-site parts replacement.
	 
	 	•	 	Preferred: RealCare service for enterprise solutions customers interested in
minimizing risk and maximizing system uptime. The Preferred support plan provides
extended business hours support with rapid response to all critical service issues. This
includes access to live telephone support on a 12x5 basis for software and repair services
including on-site hardware replacement. Features of the plan include remote secure
support access, maintenance and availability to receive free updated software.
	 
	 	•	 	Premier: RealCare service for enterprise solutions customers with large, global,
complex and multi-product solutions in the most demanding environment. The Premier
support plan provides the fastest response and resolution times to all service issues.
Customers who select the Premier plan receive the highest level of personalized and
proactive services available on a 24x7 basis. This includes not only the services
available under the Preferred plan but features assigned support staff, access to RealCare
remote monitoring, application development consultation and annual system health checks.

 

 

	2.	 	Terms of Payment of Bonuses
	 
	 	 	The achievement of each booking, revenue, and contribution margin will be based on Intervoice’s
policies and procedures for recognizing bookings, revenue, and contribution margin as in effect
at the time of the booking and/or recognition.
	 
	 	 	Entitlement to a bonus requires that (i) the bonus has been earned as specified below, and (ii)
at the time earned, you are an employee of Intervoice on active or authorized-leave status.
	 
	 	 	Bonuses on bookings are earned when the customer has accepted the products, solutions, services,
maintenance, or other item(s) purchased and Intervoice has received full payment by the
customer, including freight and tax. Bonuses on revenue are earned as revenue is recognized
over the term of the contract. Bonuses on contribution margin are earned subject to the
definitive earnings release. All bonus payments made before they are earned as defined above,
are advances against future bonus opportunities, are not earned and are subject to charge back
by Intervoice if (i) the deliverables under the order are not accepted and Intervoice has not
received full payment by the customer, including freight and tax; (ii) the order is debooked,
cancelled, or revoked; or (iii) you voluntarily leave the employment of Intervoice or you are
discharged for misconduct (as defined in the Employee Handbook) before acceptance and full
payment by the customer, including freight and tax. Intervoice may, at its sole discretion,
charge back to a sales executive any (i) advanced but unearned bonuses, (ii) unused,
unsubstantiated, or unauthorized expense advances, or (iii) other funds advanced for any purpose
that are not actually due. By your acceptance of the attached Compensation Plan in the Centive
portal, you agree to repay Intervoice the full amount of any such unearned advances described in
clauses i through iii in the preceding sentence, upon Intervoice’s request; and you expressly
authorize Intervoice to recover any such unearned advances by offset and deduction to the
fullest extent permitted by applicable law from your future salary, incentives, bonuses, or
other payments earned or otherwise due to you.
	 
	 	 	If an order is debooked after 12 months due to a customer cancellation for convenience, the
debooking will not reduce the sales executive’s bookings for the current fiscal year for
purposes of the Product, Solutions, Services, and Maintenance; however, past advances against
the bonus opportunity for the canceled order will be repaid to Intervoice in accordance with the
preceding paragraph (net of any bonus payments due on cancellation fees received). However, if
an order is debooked at any time due to Operations failing to achieve customer acceptance and
payment in full because the Products, Solutions, Services, and/or Maintenance fail to conform to
specifications or other contract requirements, the Sales Compensation Review Committee may in
its sole discretion on a case-by-case basis choose to waive the bonus charge back against
current quota credit. In all cases no future payments will be made on the order.
	 
	 	 	When a customer is defined as a CBC at the time of order acceptance, sales executives will not
be paid until as and when the Company receives payment from the CBC. For the purposes of
calculating total bookings under the incentive plan, these CBC orders will be considered
bookings as of the date the order is accepted; however, payment for or associated with these CBC
orders will not be paid to the sales executive until such time that the Company receives payment
from the CBC.
	 
	 	 	In a situation where an order is designated as a Blue Bird by the Sales Compensation Review
Committee, the Committee will review all information associated with the order and will
determine the appropriate payouts, if any, and other aspects of the order.
	 
	 	 	The bookings amount for an IHS or ASP contract that satisfies the applicable quoted margin (QM)
and net present value (NPV) pro forma requirements, will be determined by the Sales Compensation
Review Committee based on the payments the customer is committed to make under the contract
(taking into consideration any early-out provisions) during the term of the IHS or ASP contract,
or if shorter, the period extending through the third anniversary of the date that services are
first provided

 

 

	 	 	in a production environment. The bookings amount for an IHS or ASP contract that does NOT
satisfy the applicable QM and NPV pro forma requirements, will be determined by the Sales
Compensation Review Committee in its sole discretion based on the payments the customer is
committed to make under the contract (taking into considerations any early-out provisions)
during the term of the IHS or ASP contract, or if shorter, the period extending through the
second anniversary of the date that services are first provided in a production environment.
	 
	 	 	In order for a booking to satisfy the Company’s QM and NPV pro forma requirements, the
deliverables under the order must retain ___ percent of the NPV of a comparable CPE sale and the
order must retain a minimum gross margin over the contract term of ___ percent. For an IHS or
ASP sale into a nondedicated or shared port environment, the NPV pro forma requirement will be
established by the Sales Compensation Review Committee on a case-by-case basis. An approved IHS
or ASP Financial Summary form must accompany the sales order when presented to order entry.
	 
	 	 	When an existing Intervoice Customer Premise Equipment (CPE) customer determines that their
solution needs to be monitored or repurposed into the IHS environment, the existing maintenance
agreement should be kept separate from this transaction. If the maintenance is rolled into the
IHS environment, the original maintenance booking amount will be offset in the order and will
not be compensable.
	 
	 	 	Following a period of twelve months from the end of the month in which a sales order is booked
(excluding IHS and ASP), the order will be converted to a non bonusable status and any
associated payments to date will be deemed as earned.
	 
	 	 	Any exceptions to the bonus payment terms stated herein must be approved in writing by the Sales
Compensation Review Committee. The current Sales Compensation Review Committee is the CEO, the
President and COO, the Senior Vice President Human Resources (Chairperson), the Senior Sales
Executives, and the Chief Financial Officer. All interpretations of these Sales Incentive Plan
Guidelines and any associated sales incentive plans will be made by the Sales Compensation
Review Committee, and all such interpretations are final. The Sales Compensation Review
Committee may in its sole discretion at any time and from time to time modify these Sales
Incentive Plan Guidelines and any associated sales incentive plans and payout mechanics. The
Sales Compensation Review Committee reserves the right to not compensate sales executives for
low “as sold” margin orders.
	 
	3.	 	Bonusable Bookings and Revenues 
	 
	 	 	All bookings and revenues, as defined above, are bonusable with the exception of the following:

	 	•	 	Travel expenses included as part of the sales order (e.g. travel costs that are part of
the cost of an on-site installation and any taxes, transportation charges or duties
associated with the sale)
	 
	 	•	 	Stand alone MODS under $10,000
	 
	 	•	 	Training orders not included as a line item on a signed Schedule A
	 
	 	•	 	Taxes, freight, insurance, tariffs, duties, repair charges and similar charges
	 
	 	•	 	After point of sales recurring maintenance

	4.	 	Annual Intercircle Trip
	 
	 	 	Intervoice will provide a trip for quota achievers who are employees in good standing at the
time of the trip and their guest to a location conducive to relaxation, fun and enjoyment. The
location of the trip will be determined annually. No remuneration will be made to any eligible
participants who are not able to attend.

 

 

	 	 	Qualification for Intercircle is achievement of 100 percent or greater of your annual Product,
Solutions, Services, and POS Maintenance Bookings Goal and the sales executive must be on a
qualifying sales incentive plan for at least nine months during the fiscal year. Sales
executives who qualify for Intercircle for two consecutive years will be eligible to receive an
extra day on the trip in the second year. The Company reserves the right to amend or cancel the
program in its sole discretion.
	 
	5.	 	Sales Splits
	 
	 	 	Generally, 100 percent of the bonus opportunity will be paid to the major geographic area, where
the selling takes place and the decisions are made and not where the hardware is installed.
	 
	 	 	Situations may, at the sole discretion of the President and COO, require a senior sales
executive to assist another senior sales executive outside of his or her area. The sales splits
will be 75:25 percent or 50:50 percent depending on the level of involvement. Sales splits
between major geographic areas are to be approved in writing by the President and COO, in his or
her sole discretion, before an order is booked and bonuses are paid. The Sales Split Request
From must be used for all written approvals and must be sent to order entry to designate the
sales order as a split.
	 
	 	 	Any customer contact made outside of the senior sales executive’s defined area must have prior
written approval from the President and COO. Lack of such approval will result in the loss of
any compensation for that sale. Written approval will be forwarded to all involved parties.
	 
	 	 	Accounts that are designated as global or premium accounts will be paid to the major geographic
area responsible for the account, and will not be split. Unless the President and COO directs a
senior sales executive to pursue a specific channel sale opportunity (in which case the senior
sales executive will receive a bonus based on a 25 percent or 50 percent sales split, depending
on the level of involvement), channels sales are not bonusable.
	 
	6.	 	Appeal Process
	 
	 	 	A sales executive may request a review by the Sales Compensation Review Committee of assigned
booking goals where the executive believes that the objectives are not set fairly for the
territory. All Appeal review requests along with supporting data must be submitted in Centive’s
web based application, Compel, to the Committee. After a thorough review of the request, the
Sales Compensation Review Committee, in its sole discretion, will make a determination on the
matter and will communicate this decision to the sales executive and the sales executive. All
Appeal review requests must be made within 60 days from the effective date of the sales
incentive plan.exv10w1

Exhibit 10.1

Execution Copy

FIRST AMENDMENT

TO

STOCK PURCHASE AGREEMENT

     This FIRST AMENDMENT TO STOCK PURCHASE AGREEMENT (this “Amendment”) is entered into as
of July 3, 2008, by and between VALERO REFINING AND MARKETING COMPANY, a Delaware corporation
(“Seller”), ALON REFINING KROTZ SPRINGS, INC., a Delaware corporation (“Buyer”)
and, for the limited purposes set forth herein, VALERO REFINING COMPANY-LOUISIANA, a Delaware
corporation (the “Company”).

RECITALS

     A. On May 7, 2008, Seller, Buyer and the Company entered into that certain Stock Purchase
Agreement (the “Stock Purchase Agreement”) providing for the sale of the Shares (as defined
in the Stock Purchase Agreement) to Buyer.

     B. The parties to the Stock Purchase Agreement desire to amend the Stock Purchase Agreement to
reflect the matters set forth herein.

     NOW, THEREFORE, in consideration of the foregoing premises and the representations, warranties
and covenants contained herein, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.1 Defined Terms. Capitalized terms used and not otherwise defined herein
shall have the meanings given such terms in the Stock Purchase Agreement.

ARTICLE II

AMENDMENTS

     Section 2.1 Substitution of Exhibits. Each of the following Exhibits to the Stock
Purchase Agreement is hereby replaced with the version attached hereto:

	 	 	 
	Exhibit D

	  	Feedstock and Product Inventory Sales Agreement
	Exhibit F

	 	Transition Services Agreement
	Exhibit G

	 	Offtake Agreement
	Exhibit H

	 	Earnout Agreement
	Exhibit I

	 	Crude Supply Agreement.

     Section 2.2 Amendment Regarding Effective Time of Closing.

     (a) Section 2.4 of the Stock Purchase Agreement is hereby amended to replace the phrase “the
Closing shall be deemed for all tax, accounting and other purposes of this Agreement to be
effective at 12:00:01 A.M. Central time on the Closing Date” with “the Closing shall be deemed to
occur at (i) 12:00:01 A.M. Central time on July 1, 2008 solely for financial purposes,

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including but not limited to, calculating the Net Working Capital and determining the Net
Working Capital Payment and (ii) 12:00:01 A.M. Central time on July 3, 2008 for all other purposes.
For the avoidance of doubt, all income, expenses and other cash flows of the Business during the
period of July 1, 2008 through July 2, 2008 shall be for the account of Buyer, including all
payroll and employee benefit-related expenses, and (i) to the extent Seller or any of its
Affiliates incurs any such expenses, they shall be reimbursed therefor as part of the Net Working
Capital Payment or in such other manner as the Parties may mutually agree, and (ii) to the extent
Seller or any of its Affiliates receives any such income or cash flows of the Business, they shall
be remitted to Buyer as part of the Net Working Capital Payment or in such other manner as the
Parties may mutually agree.”

     (b) Section 2.5(a)(i) of the Stock Purchase Agreement is hereby amended to read as follows:

“(i) $333,000,000 (including interest thereon for the period from 12:00:01 A.M. Central
time on July 1, 2008 through the time of funding at a rate of interest equal to the interest
rate being paid on the Deposit during the same period which interest shall be paid as part of
the Net Working Capital Payment) less the Deposit (including all interest or earnings thereon)
by wire transfer to the account of Seller set forth on Section 2.5(a)(i) of the
Disclosure Schedules;”

     Section 2.3 Amendments Regarding Material Contracts. Section 4.4(a)(ix) of the Stock
Purchase Agreement is hereby amended and restated as follows:

“(ix) any lease under which such Person is the lessor or lessee of personal property or real
property that provides for an annual base rental to or from such Person of more than
$500,000;”

     Section 2.4 Amendments Regarding Environmental Matters. Section 4.7 of the
Stock Purchase Agreement is hereby amended and restated in its entirety as follows:

“Section 4.7 Environmental Matters. To the Knowledge of Seller, except as
set forth in Section 4.7 of the Disclosure Schedules or as would not
reasonably be expected to have a Material Adverse Effect:

     (a) the Company is in material compliance with Environmental Laws applicable to
the Business;

     (b) all material Authorizations reasonably required to be obtained or filed or
applied for by the Company under any Environmental Law in connection with the Assets
as normally operated prior to Closing have been duly obtained or filed or applied
for by the Company; and

     (c) there are no pending or threatened claims, actions, suits, arbitrations,
investigations, inquiries or proceedings by or before any Governmental Authority
under any Environmental Law relating to the Company or the Business.

2

 

The representations and warranties contained in this Section 4.7 are the
only representations and warranties made by Seller with respect to matters arising
under Environmental Law.”

     Section 2.5 Amendments Regarding Post Closing Payments. Section 7.1 of the Stock
Purchase Agreement is hereby amended by adding the following as Section 7.1(f):

“(f) Post Closing Payments. Notwithstanding the foregoing, Buyer and Seller
agree that for any payments that become due from Seller to Post-Closing Employees
after Closing but prior to January 1, 2009, including but not limited to payments in
connection with stock option exercises, sales of restricted stock and retention
bonus payments, Seller may make such payments directly to such Post-Closing
Employees through the Company using the Company’s relevant tax identification
number(s). For the avoidance of doubt, the process for retention bonus payments set
forth in Section 7.1(e) hereof shall not apply for any retention bonuses that may
become payable prior to January 1, 2009, and shall apply to any retention bonuses
that may become payable on or after January 1, 2009.”

     Section 2.6 Amendments Regarding the Use of Names and Logos. Article 7 of the Stock
Purchase Agreement is hereby amended by adding the following as Section 7.18:

“Section 7.18 Use of Names and Logos. Buyer acknowledges and agrees that
after the Closing it shall not use any name or logo owned by Seller and/or any of
Seller’s Affiliates (which for purposes of this Section 7.18 is deemed to not
include the current name of the Company) in the conduct of the Business or any other
business, and, Buyer shall use commercially reasonable efforts to cover or remove
any and all such names and logos from the Assets, including removing any signage
including such names and logos, within ninety (90) days after the Closing Date.”

     Section 2.7 Amendment Regarding Assignment of Certain Seller Contracts.
Article 7 of the Stock Purchase Agreement is hereby amended by adding the following as
Section 7.19:

“Section 7.19 Assignment of Certain Seller Contracts. The parties
acknowledge that certain Seller Contracts must be retained by VMSC in order to perform its
obligations under the Crude Supply Agreement and the Offtake Agreement. Except to the
extent otherwise provided under the Crude Supply Agreement or the Offtake Agreement, as
applicable, upon the expiration or earlier termination of the Crude Supply Agreement and
the Offtake Agreement, respectively, Buyer and Seller shall enter into an Assignment of
Contracts covering all Seller Contracts theretofore retained by Seller in order to perform
thereunder.”

     Section 2.8 Amendments to Disclosure Schedules.

	 	(a)	 	Section 1.1(a) of the Disclosure Schedules is hereby replaced with the version
attached hereto as Section 1.1(a) Permitted Liens.

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	 	(b)	 	Section 4.3(a) of the Disclosure Schedules is hereby replaced with the version
attached hereto as Section 4.3(a) Real Property.
	 
	 	(c)	 	Section 4.7 of the Disclosure Schedules is hereby replaced with the version
attached hereto as Section 4.7 Environmental Matters.
	 
	 	(d)	 	Section 6.8(d) of the Disclosure Schedules is hereby replaced with the version
attached hereto as Section 6.8(d) Pipeline Easements.
	 
	 	(e)	 	Section 4.10(a) “Part I Employees as of the Execution Date” of the Disclosure
Schedules is hereby replaced with the version attached hereto as Section 4.10(a) “Part
I Employees as of June 30, 2008”.
	 
	 	(f)	 	Section 4.10(a) “Part II Employees on Short-Term Leave or Long-Term Disability”
of the Disclosure Schedules is hereby replaced with the version attached hereto as
Section 4.10(a) “Part II Short-Term Inactive Employees — Long-Term Inactive
Employees”.
	 
	 	(g)	 	Section 4.12(b) of the Disclosure Schedules is hereby replaced with the version
attached hereto as Section 4.12(b) Labor-Related Administrative Proceedings.
	 
	 	(h)	 	Section 7.16 “Part II Leased Vehicles” of the Disclosure Schedules is hereby
replaced with the version attached hereto as Section 7.16 “Part II Leased Vehicles”
	 
	 	(i)	 	A new Section 8.3(c)(i) is hereby added to the Disclosure Schedules in the form
attached hereto as Section 8.3(c)(i) “Alternative Contractual Arrangements”

ARTICLE IV

CLOSING CONDITIONS

     Section 4.1 Third Person Consents. Buyer and Seller acknowledge that the Third Person
Consents relating to the first and second Seller Contracts listed in Section 8.3(c) of the
Disclosure Schedule have not been obtained at the time of the Closing. In the absence of such
Third Person Consents, Buyer and Seller agree to the alternative contractual arrangements described
in Section 8.3(c)(i) of the Disclosure Schedule and Buyer acknowledges that such alternative
contractual arrangements satisfy the closing condition set forth in Section 8.3(c) of the Stock
Purchase Agreement to the extent applicable to such Third Person Consents.

ARTICLE IV

MISCELLANEOUS

     Section 4.1 Agreement to Remain in Effect. Except as amended by this Amendment, all
terms and conditions of the Stock Purchase Agreement shall remain in full force and effect among
the parties thereto.

4

 

     Section 4.2 Governing Law. THIS AMENDMENT SHALL BE CONSTRUED (BOTH AS TO VALIDITY AND
PERFORMANCE), INTERPRETED AND ENFORCED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE
OF TEXAS.

     Section 4.3 Counterparts. This Amendment may be executed in multiple counterparts and
by the different parties hereto in separate counterparts, each of which when executed shall be
deemed to be an original but all of which taken together shall constitute one and the same
agreement.

[Signature Page Follows]

5

 

     IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to be executed as of
the date first written above by their respective officers thereunto duly authorized.

	 	 	 	 	 
	 	VALERO REFINING AND MARKETING COMPANY

 	 
	 	By:  	/s/ S. Eugene Edwards
 	 
	 	 	Name:  	S. Eugene Edwards 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	ALON REFINING KROTZ SPRINGS, INC.

 	 
	 	By:  	/s/ Jeff D. Morris
 	 
	 	 	Jeff D. Morris, 	 
	 	 	President and CEO 	 
	 
	 	For the limited purpose of agreeing to the
provisions of Section 2.7 and
Article IV of the Stock Purchase
Agreement to the extent applicable to Company:

VALERO REFINING COMPANY-LOUISIANA

 	 
	 	By:  	/s/ S. Eugene Edwards
 	 
	 	 	Name:  	S. Eugene Edwards 	 
	 	 	Title:  	Executive Vice President

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