Document:

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                                                                    EXHIBIT 4.18

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                                NOBLE CORPORATION
                                     ISSUER

                                       AND

                               JPMORGAN CHASE BANK
                                     TRUSTEE

                              --------------------

                                    INDENTURE

                     DATED AS OF [__________________, 200_]

                              --------------------

                          SUBORDINATED DEBT SECURITIES
                              (ISSUABLE IN SERIES)

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                                NOBLE CORPORATION

           RECONCILIATION AND TIE BETWEEN TRUST INDENTURE ACT OF 1939
               AND INDENTURE, DATED AS OF [_______________, 200_]

<TABLE>
<CAPTION>
  Section of
Trust Indenture                                                                       Section(s) of
  Act of 1939                                                                           Indenture
---------------                                                                       -------------
<S>                   <C>                                                            <C>
Section 310           (a)(1)...................................................      609
                      (a)(2)...................................................      609
                      (a)(3)...................................................      Not Applicable
                      (a)(4)...................................................      Not Applicable
                      (b)......................................................      608, 610
Section 311           (a)......................................................      613
                      (b)......................................................      613
                      (c)......................................................      Not Applicable
Section 312           (a)......................................................      701, 702(a)
                      (b)......................................................      702(b)
                      (c)......................................................      702(b)
Section 313           (a)......................................................      703(a)
                      (b)......................................................      703(a)
                      (c)......................................................      703(a)
                      (d)......................................................      703(b)
Section 314           (a)......................................................      704, 1005
                      (b)......................................................      Not Applicable
                      (c)(1)...................................................      103
                      (c)(2)...................................................      103
                      (c)(3)...................................................      Not Applicable
                      (d)......................................................      Not Applicable
                      (e)......................................................      103
Section 315           (a)......................................................      601(a)
                      (b)......................................................      602
                      (c)......................................................      601(b)
                      (d)......................................................      601(c)
                      (d)(1)...................................................      601(a)(1)
                      (d)(2)...................................................      601(c)(2)
                      (d)(3)...................................................      601(c)(3)
                      (e)......................................................      514
Section 316           (a)(1)(A)................................................      502, 512
                      (a)(1)(B)................................................      513
                      (a)(2)...................................................      Not Applicable
                      (a) last sentence........................................      101
                      (b)......................................................      508
Section 317           (a)(1)...................................................      503
                      (a)(2)...................................................      504
                      (b)......................................................      1003
Section 318           (a)......................................................      108
</TABLE>

---------------
Note: This reconciliation and tie shall not, for any purpose, be deemed to be a
part of the Indenture.

                                       i

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                     Page
<S>                                                                                                                  <C>
ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION..............................................      1
         SECTION 101.   Definitions..............................................................................      1
         SECTION 102.   Incorporation by Reference of Trust Indenture Act........................................      7
         SECTION 103.   Compliance Certificates and Opinions.....................................................      7
         SECTION 104.   Form of Documents Delivered to Trustee...................................................      8
         SECTION 105.   Acts of Holders; Record Dates............................................................      8
         SECTION 106.   Notices, Etc., to Trustee and Company....................................................      9
         SECTION 107.   Notice to Holders; Waiver................................................................     10
         SECTION 108.   Conflict With Trust Indenture Act........................................................     10
         SECTION 109.   Effect of Headings and Table of Contents.................................................     10
         SECTION 110.   Successors and Assigns...................................................................     10
         SECTION 111.   Separability Clause......................................................................     10
         SECTION 112.   Benefits of Indenture....................................................................     10
         SECTION 113.   Governing Law............................................................................     10
         SECTION 114.   Legal Holidays...........................................................................     11
         SECTION 115.   Corporate Obligation.....................................................................     11

ARTICLE TWO SECURITY FORMS.......................................................................................     11
         SECTION 201.   Forms Generally..........................................................................     11
         SECTION 202.   Form of Trustee's Certificate of Authentication..........................................     11
         SECTION 203.   Securities in Global Form................................................................     12

ARTICLE THREE THE SECURITIES.....................................................................................     14
         SECTION 301.   Amount Unlimited; Issuable in Series.....................................................     14
         SECTION 302.   Denominations............................................................................     16
         SECTION 303.   Execution, Authentication, Delivery and Dating...........................................     16
         SECTION 304.   Temporary Securities.....................................................................     17
         SECTION 305.   Registration, Registration of Transfer and Exchange......................................     17
         SECTION 306.   Mutilated, Destroyed, Lost and Stolen Securities.........................................     18
         SECTION 307.   Payment of Interest; Interest Rights Preserved...........................................     19
         SECTION 308.   Person Deemed Owners.....................................................................     20
         SECTION 309.   Cancellation.............................................................................     20
         SECTION 310.   Computation of Interest..................................................................     20
         SECTION 311.   CUSIP Numbers............................................................................     20

ARTICLE FOUR SATISFACTION AND DISCHARGE..........................................................................     20
         SECTION 401.   Satisfaction and Discharge of Indenture..................................................     20
         SECTION 402.   Application of Trust Money...............................................................     22
         SECTION 403.   Discharge of Liability on Securities of Any Series.......................................     22
         SECTION 404.   Reinstatement............................................................................     22

ARTICLE FIVE REMEDIES............................................................................................     23
         SECTION 501.   Events of Default........................................................................     23
         SECTION 502.   Acceleration of Maturity; Rescission and Annulment.......................................     24
         SECTION 503.   Collection of Indebtedness and Suits for Enforcement by Trustee..........................     25
         SECTION 504.   Trustee May File Proofs of Claim.........................................................     25
         SECTION 505.   Trustee May Enforce Claims Without Possession of Securities or Coupons...................     26
         SECTION 506.   Application of Money Collected...........................................................     26
         SECTION 507.   Limitation on Suits......................................................................     27
         SECTION 508.   Unconditional Right of Holders to Receive Principal, Premium and Interest................     27
         SECTION 509.   Restoration of Rights and Remedies.......................................................     27
         SECTION 510.   Rights and Remedies Cumulative...........................................................     28
         SECTION 511.   Delay or Omission Not Waiver.............................................................     28
</TABLE>

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<TABLE>
<S>                                                                                                                   <C>
         SECTION 512.   Control by Holders.......................................................................     28
         SECTION 513.   Waiver of Past Defaults..................................................................     28
         SECTION 514.   Undertaking for Costs....................................................................     29
         SECTION 515.   Waiver of Stay or Extension Laws.........................................................     29

ARTICLE SIX THE TRUSTEE..........................................................................................     29
         SECTION 601.   Certain Duties and Responsibilities......................................................     29
         SECTION 602.   Notice of Defaults.......................................................................     30
         SECTION 603.   Certain Rights of Trustee................................................................     30
         SECTION 604.   Not Responsible for Recitals or Issuance of Securities...................................     31
         SECTION 605.   May Hold Securities......................................................................     31
         SECTION 606.   Money Held in Trust......................................................................     31
         SECTION 607.   Compensation and Reimbursement...........................................................     31
         SECTION 608.   Disqualification; Conflicting Interests..................................................     32
         SECTION 609.   Corporate Trustee Required; Eligibility..................................................     32
         SECTION 610.   Resignation and Removal; Appointment of Successor........................................     33
         SECTION 611.   Acceptance of Appointment by Successor...................................................     34
         SECTION 612.   Merger, Conversion, Consolidation or Succession to Business..............................     34
         SECTION 613.   Preferential Collection of Claims Against Company........................................     34
         SECTION 614.   Appointment of Authenticating Agent......................................................     35

ARTICLE SEVEN HOLDER'S LISTS AND REPORTS BY TRUSTEE AND COMPANY..................................................     36
         SECTION 701.   Company to Furnish Trustee Names and Addresses of Holders................................     36
         SECTION 702.   Preservation of Information; Communications to Holders...................................     36
         SECTION 703.   Reports by Trustee.......................................................................     36
         SECTION 704.   Reports by Company.......................................................................     37

ARTICLE EIGHT CONSOLIDATION, AMALGAMATION, CONVEYANCE, TRANSFER OR LEASE.........................................     37
         SECTION 801.   Company May Consolidate, Etc., Only on Certain Terms.....................................     37
         SECTION 802.   Successor Person Substituted.............................................................     37

ARTICLE NINE SUPPLEMENTAL INDENTURES.............................................................................     38
         SECTION 901.   Supplemental Indentures Without Consent of Holders.......................................     38
         SECTION 902.   Supplemental Indentures With Consent of Holders..........................................     38
         SECTION 903.   Execution of Supplemental Indentures.....................................................     39
         SECTION 904.   Effect of Supplemental Indentures........................................................     39
         SECTION 905.   Conformity With Trust Indenture Act......................................................     40
         SECTION 906.   Reference in Securities to Supplemental Indentures.......................................     40

ARTICLE TEN COVENANTS............................................................................................     40
         SECTION 1001.  Payment of Principal, Premium and Interest...............................................     40
         SECTION 1002.  Maintenance of Office or Agency..........................................................     40
         SECTION 1003.  Money for Securities Payments to be Held in Trust........................................     40
         SECTION 1004.  Existence................................................................................     41
         SECTION 1005.  Statement by Officers as to Default......................................................     41
         SECTION 1006.  Waiver of Certain Covenants..............................................................     42
         SECTION 1007.  Additional Amounts.......................................................................     42

ARTICLE ELEVEN REDEMPTION OF SECURITIES..........................................................................     42
         SECTION 1101.  Applicability of Article.................................................................     42
         SECTION 1102.  Election to Redeem; Notice to Trustee....................................................     43
         SECTION 1103.  Selection by Trustee of Securities to be Redeemed........................................     43
         SECTION 1104.  Notice of Redemption.....................................................................     43
         SECTION 1105.  Deposit of Redemption Price..............................................................     44
         SECTION 1106.  Securities Payable on Redemption Date....................................................     44
</TABLE>

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<TABLE>
<S>                                                                                                                   <C>
         SECTION 1107.  Securities Redeemed in Part..............................................................     44

ARTICLE TWELVE SINKING FUNDS.....................................................................................     44
         SECTION 1201.  Applicability of Article.................................................................     44
         SECTION 1202.  Satisfaction of Sinking Fund Payments with Securities....................................     45
         SECTION 1203.  Redemption of Securities for Sinking Fund................................................     45

ARTICLE THIRTEEN SUBORDINATION...................................................................................     45
         SECTION 1301.  Securities Subordinated to Senior Indebtedness...........................................     45
         SECTION 1302.  No Payment on Securities in Certain Circumstances........................................     45
         SECTION 1303.  Securities Subordinated to Prior Payment of All Senior...................................     46
         SECTION 1304.  Subrogation to Rights of Holders of Senior Indebtedness..................................     47
         SECTION 1305.  Obligations of the Company Unconditional.................................................     47
         SECTION 1306.  Trustee Entitled to Assume Payments Not Prohibited in Absence of Notice..................     48
         SECTION 1307.  Application by Trustee of Amounts Deposited with It......................................     48
         SECTION 1308.  Subordination Rights Not Impaired by Acts or Omissions of the Company
                           or Holders of Senior Indebtedness.....................................................     48
         SECTION 1309.  Trustee to Effectuate Subordination of Securities........................................     48
         SECTION 1310.  Right of Trustee to Hold Senior Indebtedness.............................................     49
         SECTION 1311.  Article Thirteen Not to Prevent Events of Default........................................     49
         SECTION 1312.  No Fiduciary Duty of Trustee to Holders of Senior Indebtedness...........................     49
         SECTION 1313.  Article Applicable to Paying Agent.......................................................     49

ARTICLE FOURTEEN MEETINGS OF HOLDERS OF SECURITIES...............................................................     49
         SECTION 1401.  Purposes for Which Meetings May Be Called................................................     49
         SECTION 1402.  Call, Notice and Place of Meetings.......................................................     50
         SECTION 1403.  Persons Entitled to Vote at Meetings.....................................................     50
         SECTION 1404.  Quorum; Action...........................................................................     50
         SECTION 1405.  Determination of Voting Rights; Conduct and Adjournment of Meetings......................     51
         SECTION 1406.  Counting Votes and Recording Action of Meetings..........................................     51
</TABLE>

                                       iv

<PAGE>

         INDENTURE, dated as of [______________, 200_], between NOBLE
CORPORATION, a Cayman Islands exempted company limited by shares (herein called
the "Company"), having its principal office at 13135 South Dairy Ashford, Suite
800, Sugar Land, Texas 77478, and JPMORGAN CHASE BANK, a national banking
association duly organized and existing under the laws of the United States of
America, as Trustee (herein called the "Trustee"), the office of the Trustee at
which at the date hereof its corporate trust business is principally
administered being 600 Travis Street, Suite 1150, Houston, Texas 77002,
Attention: Corporate Trust Department.

                             RECITALS OF THE COMPANY

         The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its unsecured
subordinated debentures, notes or other evidences of indebtedness (herein called
the "Securities"), to be issued in one or more series as provided in this
Indenture.

         This Indenture is subject to the provisions of the Trust Indenture Act
and the rules and regulations of the Commission promulgated thereunder that are
required to be part of this Indenture and, to the extent applicable, shall be
governed by such provisions.

         All things necessary to make this Indenture a valid agreement of the
Company, in accordance with its terms, have been done.

         NOW, THEREFORE, THIS INDENTURE WITNESSETH:

         For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually covenanted and agreed, for the
equal and proportionate benefit of all Holders of the Securities or of series
thereof, as follows:

                                  ARTICLE ONE

                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

         SECTION 101. Definitions.

         For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires:

                  (1)      the terms defined in this Article One have the
         meanings assigned to them in this Article One and include the plural as
         well as the singular;

                  (2)      all accounting terms not otherwise defined herein
         have the meanings assigned to them in accordance with generally
         accepted accounting principles in the United States, and, except as
         otherwise herein expressly provided, the term "generally accepted
         accounting principles" with respect to any computation required or
         permitted hereunder shall mean such accounting principles as are
         generally accepted in the United States at the date of such
         computation; and

                  (3)      the words "herein," "hereof" and "hereunder" and
         other words of similar import refer to this Indenture as a whole and
         not to any particular Article, Section or other subdivision.

                  Certain terms, used principally in Article Six, are defined in
Section 102.

         "Act," when used with respect to any Holder, has the meaning specified
in Section 105.

         "Additional Amounts" means any additional amounts that are required by
the express terms of a Security or by or pursuant to a Board Resolution, under
circumstances specified therein or pursuant thereto, to be paid by the

                                        1

<PAGE>

Company with respect to certain taxes, assessments or other governmental charges
imposed on certain Holders and that are owing to such Holders.

         "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

         "Agent Members" has the meaning specified in Section 203.

         "Authenticating Agent" means any Person, which may include the Company,
authorized by the Trustee to act on behalf of the Trustee pursuant to Section
614 to authenticate Securities of one or more series.

         "Authorized Newspaper" means a newspaper, in the English language or in
an official language of the country of publication, customarily published on
each Business Day, whether or not published on Saturdays, Sundays or holidays,
and of general circulation in the place in connection with which the term is
used or in the financial community of such place. Where successive publications
are required to be made in Authorized Newspapers, the successive publications
may be made in the same or in different newspapers in the same city meeting the
foregoing requirements and in each case on any Business Day.

         "Board of Directors" means either the board of directors of the Company
or any duly authorized committee of that board.

         "Board Resolution" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been duly adopted by
the Board of Directors and to be in full force and effect on the date of such
certification, and delivered to the Trustee.

         "Business Day," when used with respect to any Place of Payment, means
each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which
banking institutions in that Place of Payment or the city in which the Corporate
Trust Office is located are authorized or obligated by law or executive order to
close.

         "Capital Stock" means, with respect to any Person, any and all shares,
interests, rights to purchase (other than convertible or exchangeable
Indebtedness), warrants, options, participations or other equivalents of or
interests (however designated) in stock issued by that Person.

         "Capitalized Lease Obligation" means rental obligations under a lease
that are required to be capitalized for financial reporting purposes in
accordance with generally accepted accounting principles, and the amount of
Indebtedness represented by such obligations shall be the capitalized amount of
such obligations, as determined in accordance with generally accepted accounting
principles.

         "Commission" means the Securities and Exchange Commission, as from time
to time constituted, created under the Securities Exchange Act of 1934, as
amended, or, if at any time after the execution of this Indenture such
Commission is not existing and performing the duties now assigned to it under
the Trust Indenture Act, then the body performing such duties at such time.

         "Company" means the Person named as the "Company" in the first
paragraph of this instrument until a successor Person shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Company" shall mean such successor Person.

         "Company Request" and "Company Order" mean, respectively, a written
request or order signed in the name of the Company by its Chairman of the Board,
its Chief Executive Officer, its President or a Vice President, and by its
Treasurer, an Assistant Treasurer, its Controller, an Assistant Controller, its
Secretary or an Assistant Secretary, and delivered to the Trustee.

                                        2

<PAGE>

         "Conversion Event" has the meaning specified in Section 501.

         "Corporate Trust Office" means the principal office of the Trustee at
which at any particular time its corporate trust business shall be principally
administered, which office at the date hereof is that indicated in the
introductory paragraph of this Indenture.

         "Default" means, with respect to the Securities of any series, any
event, act or condition that is, or after notice or the passage of time or both
would be, an Event of Default with respect to Securities of such series.

         "Defaulted Interest" has the meaning specified in Section 307.

         "Depositary" means, with respect to the Securities of any series
issuable or issued in whole or in part in a global form, the Person designated
as Depositary by the Company pursuant to Section 301 with respect to the
Securities of such series, until a successor Depositary shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Depositary" shall mean or include each Person who is then a Depositary
hereunder, and if at any time there is more than one such person, "Depositary"
as used with respect to the Securities of any series shall mean the Depositary
with respect to the Securities of that series.

         "Designated Senior Indebtedness," unless otherwise provided with
respect to the Securities of a series as contemplated by Section 301, means any
Senior Indebtedness that (i) in the instrument evidencing the same or the
assumption or guarantee thereof (or related documents to which the Company is a
party) is expressly designated as "Designated Senior Indebtedness" for purposes
of this Indenture and (ii) satisfies such other conditions as may be provided
with respect to the Securities of such series; provided that such instruments or
documents may place limitations and conditions on the right of such Senior
Indebtedness to exercise the rights of Designated Senior Indebtedness.

         "Disqualified Capital Stock" means, when used with respect to the
Securities of any series, (a) with respect to any Person, Capital Stock of such
Person that, by its terms or by the terms of any security into which it is
convertible, exercisable or exchangeable, is, or upon the happening of an event
or the passage of time would be, required to be redeemed or repurchased
(including at the option of the holder thereof) by such Person or any Subsidiary
of such Person, in whole or in part, on or prior to the Stated Maturity of the
Securities of such series, and (b) with respect to any Subsidiary of such Person
(including with respect to any Subsidiary of the Company), any Capital Stock
other than any common stock with no preference, privileges, or redemption or
repayment provisions.

         "Dollar" or "$" means a dollar or other equivalent unit in such coin or
currency of the United States as at the time shall be legal tender for the
payment of public and private debts.

         "Event of Default" has the meaning specified in Section 501.

         "Exchange Rate" has the meaning specified in Section 302.

         "Holder," when used with respect to any Security, means the Person in
whose name the Security is registered in the Security Register.

         "Indebtedness" of any Person, unless otherwise provided with respect to
the Securities of a series as contemplated by Section 301, means, without
duplication, the following (whether currently outstanding or hereafter incurred
or created), (i) all liabilities and obligations, contingent or otherwise, of
any such Person (a) in respect of borrowed money (whether or not the recourse of
the lender is to the whole of the assets of such Person or only to a portion
thereof), (b) evidenced by bonds, notes, debentures or similar instruments, (c)
representing the balance deferred and unpaid of the purchase price of any
property or services, except such as would constitute trade payables to trade
creditors in the ordinary course of business that are not more than 90 days past
their original due date, (d) evidenced by bankers' acceptances or similar
instruments issued or accepted by banks, (e) for the payment of money relating
to a Capitalized Lease Obligation or (f) evidenced by a letter of credit or a
reimbursement obligation of such Person with respect to any letter of credit;
(ii) all net obligations of such Person under Interest Swap and Hedging
Obligations; (iii) all liabilities of others of the kind described in the
preceding clause (i) or (ii) that such Person has

                                       3

<PAGE>

guaranteed or that is otherwise its legal liability and all obligations to
purchase, redeem or acquire any Capital Stock; and (iv) any and all deferrals,
renewals, extensions, refinancings, refundings (whether direct or indirect) of,
or amendments, modifications or supplements to, any liability of the kind
described in any of the preceding clauses (i), (ii) or (iii), or this clause
(iv), whether or not between or among the same parties.

         "Indenture" means this instrument as originally executed or as it may
from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof
and shall include the terms of particular series of Securities established as
contemplated by Section 301 and the provisions of the Trust Indenture Act that
are deemed to be a part of and govern this instrument.

         "Interest," when used with respect to an Original Issue Discount
Security that by its terms bears interest only after Maturity, means interest
payable after Maturity.

         "Interest Payment Date," when used with respect to any Security, means
the Stated Maturity of an installment of interest on such Security.

         "Interest Swap and Hedging Obligation" means any obligation of any
Person pursuant to any interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate exchange agreement,
currency exchange agreement or any other agreement or arrangement designed to
protect against fluctuations in interest rates or currency values, including,
without limitation, any arrangement whereby, directly or indirectly, such Person
is entitled to receive from time to time periodic payments calculated by
applying either a fixed or floating rate of interest on a stated notional amount
in exchange for periodic payments made by such Person calculated by applying a
fixed or floating rate of interest on the same notional amount.

         "Judgment Currency" has the meaning specified in Section 506.

         "Junior Security" of a Person means, when used with respect to the
Securities of any series, any Qualified Capital Stock of such Person or any
Indebtedness of such Person that is subordinated in right of payment to the
Securities of such series and has no scheduled installment of principal due, by
redemption, sinking fund payment or otherwise, on or prior to the Stated
Maturity of the Securities of such series.

         "Maturity" when used with respect to any Security, means the date on
which the principal of such Security or an installment of principal becomes due
and payable as therein or herein provided, whether at the Stated Maturity or by
declaration of acceleration, call for redemption or otherwise.

         "Officers' Certificate" means a certificate signed by the Chairman of
the Board, the Chief Executive Officer, the President or a Vice President, and
by the Treasurer, the Controller, the Secretary or an Assistant Treasurer,
Assistant Controller or Assistant Secretary of the Company, and delivered to the
Trustee, which certificate shall be in compliance with Section 103 hereof.

         "Opinion of Counsel" means a written opinion of counsel, who may be
counsel for or an employee of the Company, rendered, if applicable, in
accordance with Section 314(c) of the Trust Indenture Act, which opinion shall
be in compliance with Section 103 hereof.

         "Original Issue Discount Security" means any Security that provides for
an amount less than the principal amount thereof to be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 502.

         "Outstanding," when used with respect to Securities of a series, means
as of the date of determination, all Securities of such series theretofore
authenticated and delivered under this Indenture, except:

                  (i)      Securities theretofore canceled by the Trustee or
         delivered to the Trustee for cancellation;

                  (ii)     Securities for whose payment or redemption money in
         the necessary amount has been theretofore irrevocably deposited with
         the Trustee or any Paying Agent (other than the Company) in trust

                                        4

<PAGE>

         or set aside and segregated in trust by the Company (if the Company
         shall act as its own Paying Agent) for the Holders of such Securities;
         provided that, if such Securities are to be redeemed, notice of such
         redemption has been duly given pursuant to this Indenture or provision
         therefor satisfactory to the Trustee has been made; and

                  (iii)    Securities that have been paid pursuant to Section
         306 or in exchange for or in lieu of which other Securities have been
         authenticated and delivered pursuant to this Indenture, other than any
         such Securities in respect of which there shall have been presented to
         the Trustee proof satisfactory to it that such Securities are held by a
         bona fide purchaser in whose hands such Securities are valid
         obligations of the Company; provided, however, that in determining
         whether the Holders of the requisite principal amount of the
         Outstanding Securities have given any request, demand, authorization,
         direction, notice, consent or waiver hereunder, or whether a quorum is
         present at a meeting of Holders of Securities, (a) the principal amount
         of an Original Issue Discount Security that shall be deemed to be
         Outstanding for such purposes shall be the principal amount thereof
         that would be due and payable as of the date of such determination upon
         acceleration of the Maturity thereof pursuant to Section 502, (b) the
         principal amount of a Security denominated in a foreign currency shall
         be the U. S. dollar equivalent, determined by the Company on the date
         of original issuance of such Security, of the principal amount (or, in
         the case of an Original Issue Discount Security, the U.S. dollar
         equivalent, determined on the date of original issuance of such
         Security, of the amount determined as provided in (a) above), of such
         Security and (c) Securities owned by the Company or any other obligor
         upon the Securities or any Affiliate of the Company or of such other
         obligor shall be disregarded and deemed not to be Outstanding, except
         that, in determining whether the Trustee shall be protected in relying
         upon any such request, demand, authorization, direction, notice,
         consent or waiver or upon any such determination as to the presence of
         a quorum, only Securities which a Responsible Officer of the Trustee
         knows to be so owned shall be so disregarded. Securities so owned which
         have been pledged in good faith may be regarded as Outstanding if the
         pledgee establishes to the satisfaction of the Trustee the pledgee's
         right so to act with respect to such Securities and that the pledgee is
         not the Company or any other obligor upon the Securities or any
         Affiliate of the Company or of such other obligor.

         "Paying Agent" means any Person, which may include the Company,
authorized by the Company to pay the principal of, premium (if any) or interest
on or any Additional Amounts with respect to any one or more series of
Securities on behalf of the Company.

         "Payment Default" has the meaning specified in Section 1302(a).

         "Payment Notice" has the meaning specified in Section 1302(b).

         "Person" means any individual, corporation, partnership, limited
liability company, joint venture, incorporated or unincorporated association,
joint-stock company, trust, unincorporated organization or government or other
agency or political subdivision thereof or other entity of any kind.

         "Place of Payment," when used with respect to the Securities of any
series, means the place or places where the principal of, premium (if any) or
interest on or any Additional Amounts with respect to the Securities of such
series are payable as specified in accordance with Section 301 subject to the
provisions of Section 1002.

         "Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 306 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the
same debt as the mutilated, destroyed, lost or stolen Security.

         "Qualified Capital Stock" means any Capital Stock of the Company that
is not Disqualified Capital Stock.

         "Redemption Date," when used with respect to any Security to be
redeemed, means the date fixed for such redemption by or pursuant to the terms
of such Security and this Indenture.

                                        5

<PAGE>

         "Redemption Price," when used with respect to any Security to be
redeemed, means the price at which it is to be redeemed pursuant to the terms of
such Security and this Indenture.

         "Regular Record Date" for the interest payable on any Interest Payment
Date on the Securities of any series means the date specified for that purpose
as contemplated by Section 301, or, if not so specified, the first day of the
calendar month of the month of such Interest Payment Date if such Interest
Payment Date is the fifteenth day of the calendar month or the fifteenth day of
the calendar month preceding such Interest Payment Date if such Interest Payment
Date is the first day of a calendar month, whether or not such day shall be a
Business Day.

         "Required Currency" has the meaning specified in Section 506.

         "Responsible Officer," when used with respect to the Trustee, means any
officer of the Trustee with direct responsibility for the administration of this
Indenture and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of his knowledge of
and familiarity with the particular subject.

         "Securities" has the meaning stated in the first recital of this
Indenture and more particularly means any Securities authenticated and delivered
under this Indenture.

         "Security Custodian" means, with respect to Securities of a series
issued in global form, the Trustee for Securities of such series, acting in its
capacity as custodian with respect to the Securities of such series, or any
successor entity thereto.

         "Security Register" and "Security Registrar" have the respective
meanings specified in Section 305.

         "Senior Indebtedness" of the Company, unless otherwise provided with
respect to the Securities of a series as contemplated by Section 301, means (i)
all Indebtedness of the Company, whether currently outstanding or hereafter
issued, unless, by the terms of the instrument creating or evidencing such
Indebtedness, it is provided that such Indebtedness is not superior in right of
payment to the Securities or to other Indebtedness which is pari passu with or
subordinated to the Securities, and (ii) any modifications, refunding,
deferrals, renewals or extensions of any such Indebtedness or securities, notes
or other evidences of Indebtedness issued in exchange for such Indebtedness;
provided that in no event shall "Senior Indebtedness" include (a) Indebtedness
of the Company owed or owing to any Subsidiary of the Company or any officer,
director or employee of the Company or any Subsidiary of the Company, or (b) any
liability for taxes owed or owing by the Company.

         "Special Record Date" for the payment of any Defaulted Interest on the
Securities of any series means a date fixed by the Trustee pursuant to Section
307.

         "Stated Maturity," when used with respect to any Security or any
installment of principal thereof or interest thereon, means the date specified
in such Security as the fixed date on which the principal of such Security or
such installment of principal or interest is due and payable.

         "Subsidiary" means, as to any Person, a corporation or other entity of
which at least a majority of the outstanding stock or other beneficial interests
having by the terms thereof ordinary voting power to elect a majority of the
full board of directors or other governing body of such corporation or other
entity (irrespective of whether or not at the time stock or other beneficial
interests of any other class or classes of such corporation or other entity
shall have or might have voting power by reason of the happening of any
contingency) is at the time owned by such Person, or by one or more Subsidiaries
of such Person, or by such Person and one or more Subsidiaries of such Person.

         "Trustee" means the Person named as the "Trustee" in the first
paragraph of this instrument until a successor Trustee shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Trustee" shall mean or include each Person who is then a Trustee hereunder, and
if at any time there is more than one such Person, "Trustee" as used with
respect to the Securities of any series shall mean the Trustee with respect to
Securities of that series.

                                        6

<PAGE>

         "Trust Indenture Act" means the Trust Indenture Act of 1939 as in force
at the date as of which this instrument was executed, except as provided in
Section 905; provided, however, that, in the event the Trust Indenture Act of
1939 is amended after such date, "Trust Indenture Act" means, to the extent
required by any such amendment, the Trust Indenture Act of 1939 as so amended.

         "United States" means the United States of America (including the
States and the District of Columbia) and its "possessions," which include Puerto
Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the
Northern Mariana Islands.

         "United States Alien" means any Person who, for United States federal
income tax purposes, is a foreign corporation, a nonresident alien individual, a
nonresident alien or foreign fiduciary of an estate or trust, or a foreign
partnership.

         "U.S. Government Obligations" has the meaning specified in Section 401.

         "Vice President," when used with respect to the Company or the Trustee,
means any vice president, whether or not designated by a number or a word or
words added before or after the title "vice president".

         "Wholly Owned Subsidiary" means, as to any Person, a corporation or
other entity of which all of the outstanding stock or other beneficial interests
having by the terms thereof ordinary voting power to elect a majority of the
full board of directors or other governing body of such corporation or other
entity (irrespective of whether or not at the time stock or other beneficial
interests of any other class or classes of such corporation or other entity
shall have or might have voting power by reason of the happening of any
contingency) is at the time owned by such Person, or by one or more Wholly Owned
Subsidiaries of such Person, or by such Person and one or more Wholly Owned
Subsidiaries of such Person.

         "Yield to Maturity," when used with respect to any Original Issue
Discount Security, means the yield to maturity, if any, set forth on the face
thereof.

         SECTION 102. Incorporation by Reference of Trust Indenture Act.

         Whenever this Indenture refers to a provision of the Trust Indenture
Act, the provision is incorporated by reference in and made a part of this
Indenture. The following Trust Indenture Act terms used in this Indenture have
the following meanings:

         "Bankruptcy Act" means the Bankruptcy Act or Title 11 of the United
States Code.

         "indenture securities" means the Securities.

         "indenture security holder" means a Holder.

         "indenture to be qualified" means this Indenture.

         "indenture trustee" or "institutional trustee" means the Trustee.

         "obligor" on the indenture securities means the Company or any other
obligor on the Securities.

         All terms used in this Indenture that are defined by the Trust
Indenture Act, defined by a Trust Indenture Act reference to another statute or

         defined by Commission rule under the Trust Indenture Act and not
otherwise defined herein have the meanings assigned to them therein.

         SECTION 103. Compliance Certificates and Opinions.

                                        7

<PAGE>

         Except as otherwise expressly provided by this Indenture, upon any
application or request by the Company to the Trustee to take any action under
any provision of this Indenture, the Company shall furnish to the Trustee an
Officers' Certificate stating that all conditions precedent, if any, provided
for in this Indenture relating to the proposed action have been complied with
and an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with, except that in the case
of any such application or request as to which the furnishing of such documents
is specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished.

         Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include

                  (1)      a statement that each Person signing such certificate
         or opinion has read such covenant or condition and the definitions
         herein relating thereto;

                  (2)      a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

                  (3)      a statement that, in the opinion of each such Person,
         such Person has made such examination or investigation as is necessary
         to enable such Person to express an informed opinion as to whether or
         not such covenant or condition has been complied with; and

                  (4)      a statement as to whether, in the opinion of each
         such Person, such condition or covenant has been complied with.

         SECTION 104. Form of Documents Delivered to Trustee.

         In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

         Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or Opinion of Counsel may be based, insofar as
it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.

         Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

         SECTION 105. Acts of Holders; Record Dates.

         (a)      Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken
by Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by an agent duly
appointed in writing. Except as herein otherwise expressly provided, such action
shall become effective when such instrument or instruments or record or both are
delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments and any such record (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the
"Act" of the Holders signing such instrument or instruments and so voting at any
such meeting. Proof of execution of any such instrument or of a writing
appointing any such agent, or the holding of any

                                        8

<PAGE>

Person of a Security, shall be sufficient for any purpose of this Indenture and
(subject to Section 601) conclusive in favor of the Trustee and the Company, if
made in the manner provided in this Section 105. The record of any meeting of
Holders of Securities shall be proved in the manner provided in Section 1406.

         The Company may set a record date for purposes of determining the
identity of Holders of Securities entitled to vote or consent to any action by
vote or consent authorized or permitted under this Indenture. If a record date
is fixed, those Persons who were Holders of Outstanding Securities at such
record date (or their duly designated proxies), and only those Persons, shall be
entitled with respect to such Securities to take such action by vote or consent
or to revoke any vote or consent previously given, whether or not such Persons
continue to be Holders after such record date. Promptly after any record date is
set pursuant to this paragraph, the Company, at its own expense, shall cause
notice thereof to be given to the Trustee in writing in the manner provided in
Section 106 and to the relevant Holders as set forth in Section 107.

         (b)      The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by
law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where such
execution is by a signer acting in a capacity other than his individual
capacity, such certificate or affidavit shall also constitute sufficient proof
of his authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may also be proved
in any other manner which the Trustee deems sufficient.

         (c)      The principal amount and serial numbers of Securities held by
any Person, and the date of holding the same, shall be proved by the Security
Register.

         (d)      In determining whether the Holders of the requisite principal
amount of Securities have given any request, demand, authorization, direction,
notice, consent or waiver under this Indenture, the principal amount of an
Original Issue Discount Security that may be counted in making such
determination and that shall be deemed to be Outstanding for such purposes shall
be equal to the amount of the principal thereof that would be due and payable
upon a declaration of acceleration of the Maturity thereof pursuant to Section
502 at the time the taking of such action by the Holders of such requisite
principal amount is evidenced to the Trustee for such Securities.

         (e)      Any request, demand, authorization, direction, notice,
consent, waiver or other Act of the Holder of any Security shall bind every
future Holder of the same Security and the Holder of every Security issued upon
the registration of transfer thereof or in exchange therefor or in lieu thereof
in respect of anything done, omitted or suffered to be done by the Trustee or
the Company in reliance thereon, whether or not notation of such action is made
upon such Security. Any consent or waiver of the Holder of any Security shall be
irrevocable for a period of six months after the date of execution thereof, but
otherwise any such Holder or subsequent Holder may revoke the request, demand,
authorization, direction, notice, consent or other Act as to his Security or
portion of his Security; provided, however, that such revocation shall be
effective only if the Trustee receives the notice of revocation before the date
the Act becomes effective.

         SECTION 106. Notices, Etc., to Trustee and Company.

         Any request, demand, authorization, direction, notice, consent, waiver
or Act of Holders or other document provided or permitted by this Indenture to
be made upon, given or furnished to, or filed with,

                  (1)      the Trustee by any Holder or by the Company shall be
         sufficient for every purpose hereunder if made, given, furnished or
         filed in writing to or with the Trustee at its Corporate Trust Office,
         Attention: Global Trust Service Department, or

                  (2)      the Company by the Trustee or by any Holder shall be
         sufficient for every purpose hereunder (unless otherwise herein
         expressly provided) if in writing and mailed, first-class postage
         prepaid, to the Company addressed to it at the address of its principal
         office specified in the first paragraph of this Indenture or at any
         other address previously furnished in writing to the Trustee by the
         Company, Attention: Corporate Secretary.

                                        9

<PAGE>

         SECTION 107. Notice to Holders; Waiver.

         Where this Indenture provides for notice to Holders of Securities of
any event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
each Holder affected by such event, at the address of such Holder as it appears
in the Security Register, not later than the latest date, and not earlier than
the earliest date, prescribed for the giving of such notice.

         In case by reason of the suspension of regular mail service, or by
reason of any other cause it shall be impracticable to give such notice to
Holders of Securities by mail, then such notification as shall be made with the
approval of the Trustee shall constitute a sufficient notification for every
purpose hereunder. In any case in which notice to Holders of Securities is given
by mail, neither the failure to mail such notice, nor any defect in any notice
so mailed, to any particular Holder of a Security, shall affect the sufficiency
of such notice with respect to other Holders of Securities.

         Where this Indenture provides for notice in any manner, such notice may
be waived in writing by the Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Holders shall be filed with the Trustee, but such
filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

         SECTION 108. Conflict With Trust Indenture Act.

         If any provision hereof limits, qualifies or conflicts with any
provision of the Trust Indenture Act or another provision hereof required to be
included in this Indenture by any of the provisions of the Trust Indenture Act,
such provision of the Trust Indenture Act shall control. If any provision of
this Indenture modifies or excludes any provision of the Trust Indenture Act
that may be so modified or excluded, the former provision shall be deemed to
apply to this Indenture as so modified or to be excluded.

         SECTION 109. Effect of Headings and Table of Contents.

         The Article and Section headings herein and the Table of Contents are
for convenience only and shall not affect the construction hereof.

         SECTION 110. Successors and Assigns.

         All covenants and agreements in this Indenture by the Company shall
bind its successors and assigns, whether or not so expressed.

         SECTION 111. Separability Clause.

         In case any provision in this Indenture or in the Securities shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

         SECTION 112. Benefits of Indenture.

         Nothing in this Indenture or in the Securities, express or implied,
shall give to any Person any benefit or any legal or equitable right, remedy or
claim under this Indenture, other than the parties hereto and their successors
hereunder, any Authenticating Agent, Paying Agent or Security Registrar and the
Holders and any holders of any Senior Indebtedness.

         SECTION 113. Governing Law.

         This Indenture and the Securities shall be governed by and construed in
accordance with the laws of the State of New York, but without giving effect to
applicable principles of conflicts of law to the extent the application of the
laws of another jurisdiction would be required thereby.

                                       10

<PAGE>

         SECTION 114. Legal Holidays.

         In any case where any Interest Payment Date, Redemption Date or Stated
Maturity of any Security shall not be a Business Day at any Place of Payment,
then (notwithstanding any other provision of this Indenture or of the
Securities) payment of principal of, premium (if any) and interest on or any
Additional Amounts with respect to Securities of any series need not be made at
such Place of Payment on such date, but may be made on the next succeeding
Business Day at such Place of Payment with the same force and effect as if made
on the Interest Payment Date or Redemption Date, or at the Stated Maturity,
provided that no interest shall accrue with respect to such payment for the
period from and after such Interest Payment Date, Redemption Date or Stated
Maturity, as the case may be.

         SECTION 115. Corporate Obligation.

         No recourse may be taken, directly or indirectly, against any
incorporator, subscriber to the ordinary shares or capital stock, stockholder,
director, member, officer, director or employee of the Company or the Trustee or
of any predecessor or successor of the Company or the Trustee with respect to
the Company's obligations on the Securities or the obligations of the Company or
the Trustee under this Indenture or any certificate or other writing delivered
in connection herewith.

                                  ARTICLE TWO

                                 SECURITY FORMS

         SECTION 201. Forms Generally.

         The Securities of each series shall be in fully registered form and in
substantially such form or forms (including temporary or permanent global form)
as shall be established by or pursuant to a Board Resolution or in one or more
indentures supplemental hereto, in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
this Indenture and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers of the Company executing
such Securities, as evidenced by their execution of the Securities. If temporary
Securities of any series are issued in global form as permitted by Section 304,
the form thereof shall be established as provided in the preceding sentence. A
copy of the Board Resolution establishing the form or forms of Securities of any
series (or any such temporary global Security) shall be delivered to the Trustee
at or prior to the delivery of the Company Order contemplated by Section 303 for
the authentication and delivery of such Securities (or any such temporary global
Security).

         The definitive Securities shall be printed, lithographed or engraved on
steel engraved borders or may be produced in any other manner, all as determined
by the officers executing such Securities, as evidenced by their execution
thereof.

         SECTION 202. Form of Trustee's Certificate of Authentication.

         The Trustee's certificate of authentication shall be in substantially
the following form:

         "This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.

                                             JPMORGAN CHASE BANK,
                                             as Trustee

                                             By:______________________________
                                                Authorized Signatory"

                                       11

<PAGE>

         SECTION 203. Securities in Global Form.

         If Securities of a series are issuable in global form, as contemplated
by Section 301, then, notwithstanding clause (10) of Section 301 and the
provisions of Section 302, any such Security shall represent such of the
Outstanding Securities of such series as shall be specified therein and may
provide that it shall represent the aggregate amount of Outstanding Securities
from time to time endorsed thereon and that the aggregate amount of Outstanding
Securities represented thereby may from time to time be reduced to reflect
exchanges or redemptions. Any endorsement of a Security in global form to
reflect the amount, or any increase or decrease in the amount, of Outstanding
Securities represented thereby shall be made by the Trustee in such manner and
upon instructions given by such Person or Persons as shall be specified in such
Security or in a Company Order to be delivered to the Trustee pursuant to
Section 303 or Section 304. Subject to the provisions of Section 303 and, if
applicable, Section 304, the Trustee shall deliver and redeliver any Security in
permanent global form in the manner and upon instructions given by the Person or
Persons specified in such Security or in the applicable Company Order. With
respect to the Securities of any series that are represented by a Security in
global form, the Company authorizes the execution and delivery by the Trustee of
a letter of representations or other similar agreement or instrument in the form
customarily provided for by the Depositary appointed with respect to such global
Security. Any Security in global form may be deposited with the Depositary or
its nominee, or may remain in the custody of the Security Custodian therefor
pursuant to an agreement between the Trustee and the Depositary. If a Company
Order pursuant to Section 303 or 304 has been, or simultaneously is, delivered,
any instructions by the Company with respect to endorsement or delivery or
redelivery of a Security in global form shall be in writing but need not comply
with Section 103 and need not be accompanied by an Opinion of Counsel.

         Members of, or participants in, the Depositary ("Agent Members") shall
have no rights under this Indenture with respect to any Security issued in
global form held on their behalf by the Depositary, or the Security Custodian as
its custodian, or under such global Security, and the Depositary may be treated
by the Company, the Security Custodian and any agent of the Company or the
Trustee as the absolute owner of such global Security for all purposes
whatsoever. Notwithstanding the foregoing, (i) the registered holder of a
Security of any series issued in global form may grant proxies and otherwise
authorize any Person, including Agent Members and Persons that may hold
interests through Agent Members, to take any action that a Holder of such series
is entitled to take under this Indenture or the Securities of such series and
(ii) nothing herein shall prevent the Company, the Security Custodian or any
agent of the Company or the Security Custodian, from giving effect to any
written certification, proxy or other authorization furnished by the Depositary
or shall impair, as between the Depositary and its Agent Members, the operation
of customary practices governing the exercise of the rights of a beneficial
owner of any Security.

         Notwithstanding Section 305, except as otherwise specified as
contemplated by Section 301, any permanent global Security shall be exchangeable
only as provided in this paragraph. If the beneficial owners of interests in a
permanent global Security are entitled to exchange such interest for Securities
of such series and of like tenor and principal amount of another authorized form
and denomination, as specified as contemplated by Section 301, then without
unnecessary delay but in any event not later than the earliest date on which
such interests may be so exchanged, the Company shall deliver to the Trustee
definitive Securities of that series in an aggregate principal amount equal to
the principal amount of such permanent global Security, executed by the Company.
On or after the earliest date on which such interests may be so exchanged, such
permanent global Security shall be surrendered from time to time in accordance
with instructions given to the Trustee and the Depositary (which instructions
shall be in writing but need not comply with Section 103 or be accompanied by an
Opinion of Counsel) by the Depositary or such other depositary as shall be
specified in the Company Order with respect thereto to the Trustee, as the
Company's agent for such purpose, to be exchanged, in whole or in part, for
definitive Securities of the same series without charge and the Trustee shall
authenticate and deliver, in exchange for each portion of such permanent global
Security, a like aggregate principal amount of other definitive Securities of
the same series of authorized denominations and of like tenor as the portion of
such permanent global Security to be exchanged; provided, however, that no such
exchanges may occur during a period beginning at the opening of business 15 days
before any selection of Securities of that series is to be redeemed and ending
on the relevant Redemption Date. Promptly following any such exchange in part,
such permanent global Security marked to evidence the partial exchange shall be
returned by the Trustee to the Depositary or such other depositary referred to
above in accordance with the instructions of the Company referred to above. If a
definitive Security is issued in exchange for any portion of a permanent global
Security after the close of business at the office or agency where such exchange
occurs on (i) any Regular Record Date and before the opening of business at such
office or agency on the relevant Interest Payment

                                       12

<PAGE>

Date, or (ii) any Special Record Date and before the opening of business at such
office or agency on the related proposed date for payment of Defaulted Interest,
interest or Defaulted Interest, as the case may be, will not be payable on such
Interest Payment Date or proposed date for payment, as the case may be, in
respect of such Security, but will be payable on such Interest Payment Date or
proposed for payment, as the case may be, only to the Person to whom interest in
respect of such portion of such permanent global Security is payable in
accordance with the provisions of this Indenture.

         Notwithstanding Section 305, except as otherwise specified as
contemplated by Section 301, transfers of a Security issued in global form shall
be limited to transfers of such global Security in whole, but not in part, to
the Depositary, its successors or their respective nominees. Interests of
beneficial owners in a Security issued in global form may be transferred in
accordance with the rules and procedures of the Depositary. Securities of any
series shall be transferred to all beneficial owners of a global Security of
such series in exchange for their beneficial interests in that global Security
if, and only if, either (1) the Depositary notifies the Company that it is
unwilling or unable to continue as Depositary for the global Security of such
series or at any time the Depositary ceases to be registered under the Exchange
Act, (2) an Event of Default, or an event which, with notice or the lapse of
time or both, would constitute an Event of Default, has occurred with respect to
such series and is continuing and the Security Registrar has received a request
from the Depositary or the Trustee to issue Securities of such series in lieu of
all or a portion of that global Security (in which case the Company shall
deliver Securities of such series within 30 days of such request) or (3) the
Company determines in its sole discretion that a global Security shall be
exchangeable for definitive Securities in registered form.

         In connection with any transfer of a portion of the beneficial interest
in a global Security of any series to beneficial owners pursuant to this Section
203, the Security Registrar shall reflect on its books and records the date and
a decrease in the principal amount of the global Security of that series in an
amount equal to the principal amount of the beneficial interest in the global
Security of that series to be transferred, and the Company shall execute, and
the Trustee upon receipt of a Company Order for the authentication and delivery
of Securities of that series shall authenticate and deliver, one or more
Securities of the same series of like tenor and amount.

         In connection with the transfer of all the beneficial interests in a
global Security of any series to beneficial owners pursuant to this Section 203,
the global Security shall be deemed to be surrendered to the Trustee for
cancellation, and the Company shall execute, and the Trustee shall authenticate
and deliver, to each beneficial owner identified by the Depositary in exchange
for its beneficial interest in the global Security, an equal aggregate principal
amount of Securities of that series of authorized denominations.

         Neither the Company nor the Trustee will have any responsibility or
liability for any aspect of the records relating to, or payments made on account
of, Securities of any series by the Depositary, or for maintaining, supervising
or reviewing any records of the Depositary relating to such Securities. Neither
the Company nor the Trustee shall be liable for any delay by the related global

         Security Holder or the Depositary in identifying the beneficial owners,
and each such Person may conclusively rely on, and shall be protected in relying
on, instructions from such global Security Holder or the Depositary for all
purposes (including with respect to the registration and delivery, and the
respective principal amounts, of the Securities to be issued).

         The provisions of the last sentence of Section 303 shall apply to any
Security in global form if such Security was never issued and sold by the
Company and the Company delivers to the Trustee the Security in global form
together with written instructions (which need not comply with Section 103 and
need not be accompanied by an Opinion of Counsel) with regard to the reduction
in the principal amount of Securities represented thereby, together with the
written statement contemplated by the last sentence of Section 303.

         Notwithstanding the provisions of Sections 201 and 307, unless
otherwise specified as contemplated by Section 301, payment of principal of,
premium (if any) and interest on or any Additional Amounts with respect to any
Security in permanent global form shall be made to the Person or Persons
specified therein.

         Notwithstanding the provisions of Section 308 and except as provided in
the preceding paragraph, the Company, the Trustee and any agent of the Company
or of the Trustee shall treat a Person as the Holder of such

                                       13

<PAGE>

principal amount of Outstanding Securities represented by a global Security as
shall be specified in a written statement, if any, of the Holder of such global
Security which is produced to the Security Registrar by such Holder.

         Global Securities may be issued in either temporary or permanent form.
Permanent global Securities will be issued in definitive form.

                                 ARTICLE THREE

                                 THE SECURITIES

         SECTION 301. Amount Unlimited; Issuable in Series.

         The aggregate principal amount of Securities that may be authenticated
and delivered under this Indenture is unlimited.

         The Securities may be issued in one or more series. There shall be
established in or pursuant to a Board Resolution, and set forth in an Officers'
Certificate, or established in one or more indentures supplemental hereto, prior
to the issuance of Securities of any series,

                  (1)      the title of the Securities of such series (which
         shall distinguish the Securities of the series from all other
         Securities);

                  (2)      any limit upon the aggregate principal amount of the
         Securities of such series which may be authenticated and delivered
         under this Indenture (except for Securities authenticated and delivered
         upon registration of transfer of, or in exchange for, or in lieu of,
         other Securities of such series pursuant to Section 203, 304, 305, 306,
         906 or 1107);

                  (3)      whether Securities of such series are to be issuable
         initially in temporary global form and whether any Securities of such
         series are to be issuable in permanent global form and, if so, whether
         beneficial owners of interests in any such global Security may exchange
         such interests for Securities of such series and of like tenor of any
         authorized form and denomination and the circumstances under which any
         such exchanges may occur, if other than in the manner provided in
         Sections 203 or 305, and the Depositary for any global Security or
         Securities of such series;

                  (4)      the manner in which any interest payable on a
         temporary global Security of such series on any Interest Payment Date
         will be paid if other than in the manner provided in Section 304;

                  (5)      the date or dates on which the principal or premium
         (if any) of the Securities of such series is payable or the method of
         determination thereof;

                  (6)      the rate or rates, or the method of determination
         thereof, at which the Securities of such series shall bear interest, if
         any, whether and under what circumstances Additional Amounts with
         respect to such Securities shall be payable, the date or dates from
         which such interest shall accrue, the Interest Payment Dates on which
         such interest shall be payable and, if other than as set forth in
         Section 101, the Regular Record Date for the interest payable on any
         Securities on any Interest Payment Date;

                  (7)      the place or places where, subject to the provisions
         of Section 1002, the principal of, premium (if any) and interest on or
         any Additional Amounts with respect to the Securities of such series
         shall be payable;

                  (8)      the period or periods within which, the price or
         prices (whether denominated in cash, securities or otherwise) at which
         and the terms and conditions upon which Securities of such series may
         be redeemed, in whole or in part, at the option of the Company, if the
         Company is to have that option, and the manner in which the Company
         must exercise any such option, if different from those set forth
         herein;

                                       14

<PAGE>

                  (9)      the obligation, if any, of the Company to redeem or
         purchase Securities of such series pursuant to any sinking fund or
         analogous provisions or at the option of a Holder thereof and the
         period or periods within which, the price or prices (whether
         denominated in cash, securities or otherwise) at which and the terms
         and conditions upon which, Securities of such series shall be redeemed
         or purchased in whole or in part pursuant to such obligation;

                  (10)     the denomination in which any Securities of that
         series shall be issuable, if other than denominations of $1,000 and any
         integral multiple thereof;

                  (11)     the currency or currencies (including composite
         currencies), if other than Dollars, or the form, including equity
         securities, other debt securities (including Securities), warrants or
         any other securities or property of the Company or any other Person, in
         which payment of the principal of, premium (if any) and interest on or
         any Additional Amounts with respect to the Securities of such series
         shall be payable;

                  (12)     if the principal of, premium (if any) or interest on
         or any Additional Amounts with respect to the Securities of such series
         are to be payable, at the election of the Company or a Holder thereof,
         in a currency or currencies (including composite currencies) other than
         that in which the Securities are stated to be payable, the currency or
         currencies (including composite currencies) in which payment of the
         principal of, premium (if any) and interest on or any Additional
         Amounts with respect to Securities of such series as to which such
         election is made shall be payable, and the periods within which and the
         terms and conditions upon which such election is to be made;

                  (13)     if the amount of payments of principal of, premium
         (if any) and interest on or any Additional Amounts with respect to the
         Securities of such series may be determined with reference to any
         commodities, currencies or indices, values, rates or prices or any
         other index or formula, the manner in which such amounts shall be
         determined;

                  (14)     if other than the entire principal amount thereof,
         the portion of the principal amount of Securities of such series that
         shall be payable upon declaration of acceleration of the Maturity
         thereof pursuant to Section 502;

                  (15)     any additional means of satisfaction and discharge of
         this Indenture with respect to Securities of such series pursuant to
         Section 401, any additional conditions to discharge pursuant to Section
         401 or 403 and the application, if any, of Section 403;

                  (16)     any deletions or modifications of or additions to the
         definitions set forth in Section 101, Events of Default set forth in
         Section 501 or covenants of the Company set forth in Article Ten
         pertaining to the Securities of such series;

                  (17)     if the Securities of such series are to be
         convertible into or exchangeable for equity securities, other debt
         securities (including Securities), warrants or any other securities or
         property of the Company or any other Person, at the option of the
         Company or the Holder or upon the occurrence of any condition or event,
         the terms and conditions for such conversion or exchange;

                  (18)     whether any of such Securities will be subject to
         certain optional interest rate reset provisions;

                  (19)     the additions or changes, if any, to the Indenture
         with respect to such Securities as shall be necessary to permit or
         facilitate the issuance of such Securities in bearer form, registered
         or not registrable as to principal, and with or without interest
         coupons; and

                  (20)     any other terms of such series (which terms shall not
         be inconsistent with the provisions of this Indenture).

                                       15
<PAGE>

         All Securities of any one series shall be substantially identical
except as to denomination and except as may otherwise be provided in or pursuant
to the Board Resolution referred to above and (subject to Section 303) set
forth, or determined in the manner provided, in the Officers' Certificate
referred to above or in any such indenture supplemental hereto.

         At the option of the Company, interest on the Securities of any series
that bears interest may be paid by mailing a check to the address of any Holder
as such address shall appear in the Security Register.

         If any of the terms of the series are established by action taken
pursuant to a Board Resolution, a copy of an appropriate record of such action
together with such Board Resolution shall be certified by the Secretary or an
Assistant Secretary of the Company and delivered to the Trustee at or prior to
the delivery of the Officers' Certificate setting forth the terms of the series.

         The Securities shall be subordinated in right of payment to Senior
Indebtedness as provided in Article Thirteen.

         SECTION 302. Denominations.

         The Securities of each series shall be issuable in such denominations
as shall be specified as contemplated by Section 301. In the absence of any such
provisions with respect to the Securities of any series, the Securities of such
series denominated in Dollars shall be issuable in denominations of $1,000 and
any integral multiple thereof. Unless otherwise provided as contemplated by
Section 301 with respect to any series of Securities, any Securities of a series
denominated in a currency other than Dollars shall be issuable in denominations
that are the equivalent, as determined by the Company by reference to the noon
buying rate in The City of New York for cable transfers for such currency

         ("Exchange Rate"), as such rate is reported or otherwise made available
by the Federal Reserve Bank of New York, on the applicable issue date for such
Securities, of $1,000 and any integral multiple thereof.

         SECTION 303. Execution, Authentication, Delivery and Dating.

         The Securities shall be executed on behalf of the Company by its
Chairman of the Board, its Chief Executive Officer, its President, its Treasurer
or one of its Vice Presidents. The signature of any of these officers on the
Securities may be manual or facsimile.

         Securities bearing the manual or facsimile signatures of individuals
who were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Securities or did not
hold such offices at the date of such Securities.

         At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities, and the Trustee in accordance
with the Company Order shall authenticate and deliver such Securities as in this
Indenture provided and not otherwise.

         If the form or terms of the Securities of a series have been
established in or pursuant to one or more Board Resolutions or any other method
permitted by Sections 201 and 301, in authenticating such Securities, and
accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be entitled to receive, and (subject to
Section 601) shall be fully protected in relying upon, an Opinion of Counsel
stating that,

                  (a)      if the form of such Securities has been established
         in conformity with the provisions of this Indenture;

                  (b)      if the terms of such Securities have been established
         in conformity with the provisions of this Indenture; and

                                       16

<PAGE>

                  (c)      that such Securities when authenticated and delivered
         by the Trustee and issued by the Company in the manner and subject to
         any conditions specified in such Opinion of Counsel, will constitute
         legal, valid and binding obligations of the Company, enforceable in
         accordance with their terms, except as such enforcement is subject to
         the effect of (i) bankruptcy, insolvency, fraudulent conveyance,
         reorganization or other laws relating to or affecting creditors' rights
         and (ii) general principles of equity (regardless of whether such
         enforcement is considered in a proceeding in equity or at law).

If such form or terms have been so established, the Trustee shall not be
required to authenticate such Securities if the issue of such Securities
pursuant to this Indenture will affect the Trustee's own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner not
reasonably acceptable to the Trustee.

         Each Security shall be dated the date of its authentication.

         No Security shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein
executed by the Trustee by manual signature, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such Security
has been duly authenticated and delivered hereunder. Notwithstanding the
foregoing, if any Security shall have been authenticated and delivered hereunder
but never issued and sold by the Company, and the Company shall deliver such
Security to the Trustee for cancellation as provided in Section 309 together
with a written statement (which need not comply with Section 103 and need not be
accompanied by an Opinion of Counsel) stating that such Security has never been
issued and sold by the Company, for all purposes of this Indenture such Security
shall be deemed never to have been authenticated and delivered hereunder and
shall never be entitled to the benefits of this Indenture.

         SECTION 304. Temporary Securities.

         Pending the preparation of definitive Securities of any series, the
Company may execute, and upon Company Order the Trustee shall authenticate and
deliver, temporary Securities that are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued, in registered form and with such appropriate insertions, omissions,
substitutions and other variations as the officers of the Company executing such
Securities may determine, as evidenced by their execution of such Securities.

         Except in the case of temporary Securities in global form (which shall
be exchanged in accordance with the provisions of the following paragraphs), if
temporary Securities of any series are issued, the Company will cause definitive
Securities of that series to be prepared without unreasonable delay. After the
preparation of definitive Securities of such series, the temporary Securities of
such series shall be exchangeable for definitive Securities of such series upon
surrender of the temporary Securities of such series at the office or agency of
the Company in a Place of Payment for that series, without charge to the Holder.
Upon surrender for cancellation of any one or more temporary Securities of any
series, the Company shall execute and deliver a Company Order requesting the
Trustee to authenticate and deliver and the Trustee shall authenticate and
deliver in exchange therefor a like principal amount of definitive Securities of
the same series of authorized denominations. Until so exchanged the temporary
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities of such series.

         All Outstanding temporary Securities of any series shall in all
respects be entitled to the same benefits under this Indenture as definitive
Securities of the same series and of like tenor authenticated and delivered
hereunder.

         SECTION 305. Registration, Registration of Transfer and Exchange.

         The Company shall cause to be kept for each series of Securities at one
of the offices or agencies maintained pursuant to Section 1002 a register (the
register maintained in such office and in any other office or agency of the
Company in a Place of Payment being herein sometimes collectively referred to as
the "Security Register") in which, subject to such reasonable regulations as it
may prescribe, the Company shall provide for the

                                       17

<PAGE>

registration of Securities and of transfers of Securities of such series. The
Trustee is hereby initially appointed "Security Registrar" for the purpose of
registering Securities and transfers of Securities as herein provided.

         Except as set forth in Section 203 or as may be provided pursuant to
Section 301, upon surrender for registration of transfer of any Security of any
series at the office or agency in a Place of Payment for that series, the
Company shall execute and deliver a Company Order requesting the Trustee to
authenticate and deliver and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Securities of
the same series and of like tenor, of any authorized denominations and of a like
aggregate principal amount.

         At the option of the Holder, Securities of any series may be exchanged
for other Securities of the same series and of like tenor, of any authorized
denominations and of a like aggregate principal amount, upon surrender of the
Securities to be exchanged at such office or agency. Whenever any Securities are
so surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange is
entitled to receive.

         All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Securities
surrendered upon such registration of transfer or exchange.

         Every Security presented or surrendered for registration of transfer or
for exchange shall (if so required by the Company or the Trustee) be duly
endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed, by the
Holder thereof or his attorney duly authorized in writing.

         No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than exchange
pursuant to Section 304, 906 or 1107 not involving any transfer.

         The Company shall not be required (i) to issue, register the transfer
of or exchange Securities of any series during a period beginning at the opening
of business 15 days before the day of the mailing of a notice of redemption of
Securities of such series selected for redemption and ending at the close of
business on the day of the mailing of the relevant notice of redemption or (ii)
to register the transfer of or exchange any Security so selected for redemption
in whole or in part, except the unredeemed portion of any Security being
redeemed in part.

         SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities.

         If any mutilated Security is surrendered to the Trustee, the Company
shall execute and deliver a Company Order requesting the Trustee to authenticate
and deliver and the Trustee shall authenticate and deliver in exchange therefor
a new Security of the same series and of like tenor and principal amount and
bearing a number not contemporaneously outstanding.

         If there shall be delivered to the Company and the Trustee (i) evidence
to their satisfaction of the destruction, loss or theft of any Security and (ii)
such security or indemnity as may be required by them to save each of them and
any agent of either of them harmless, then, in the absence of notice to the
Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and upon the Company's request the Trustee
shall authenticate and deliver, in lieu of any such destroyed, lost or stolen
Security, a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

         In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Security, pay such Security.

                                       18

<PAGE>

         Upon the issuance of any new Security under this Section 306, the
Company may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fee and expenses of the Trustee) connected therewith.

         Every new Security of any series issued pursuant to this Section 306 in
lieu of any destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the destroyed,
lost or stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities of that series duly issued hereunder.

         The provisions of this Section 306 are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities.

         SECTION 307. Payment of Interest; Interest Rights Preserved.

         Interest on any Security which is payable, and is punctually paid or
duly provided for, on any Interest Payment Date shall be paid to the Person in
whose name that Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest. Unless
otherwise provided with respect to the Securities of any series, payment of
interest may be made at the option of the Company by check mailed or delivered
to the address of any Person entitled thereto as such address shall appear in
the Security Register.

         Any interest on any Security of any series which is payable, but is not
punctually paid or duly provided for, on any Interest Payment Date (herein
called "Defaulted Interest") shall forthwith cease to be payable to the Holder
on the relevant Regular Record Date by virtue of having been such Holder, and
such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in clause (1) or (2) below:

                  (1)      The Company may elect to make payment of any
         Defaulted Interest to the Persons in whose names the Securities of such
         series (or their respective Predecessor Securities) are registered at
         the close of business on a Special Record Date for the payment of such
         Defaulted Interest, which shall be fixed in the following manner. The
         Company shall notify the Trustee in writing of the amount of Defaulted
         Interest proposed to be paid on each Security of such series and the
         date of the proposed payment, and at the same time the Company shall
         deposit with the Trustee an amount of money equal to the aggregate
         amount proposed to be paid in respect of such Defaulted Interest or
         shall make arrangements satisfactory to the Trustee for such deposit
         prior to the date of the proposed payment, such money when deposited to
         be held in trust for the benefit of the Persons entitled to such
         Defaulted Interest as in this clause (1) provided. Thereupon the
         Trustee shall fix a Special Record Date for the payment of such
         Defaulted Interest which shall be not more than 15 days and not less
         than 10 days prior to the date of the proposed payment and not less
         than 10 days after the receipt by the Trustee of the notice of the
         proposed payment. The Trustee shall promptly notify the Company of such
         Special Record Date and, in the name and at the expense of the Company,
         shall cause notice of the proposed payment of such Defaulted Interest
         and the Special Record Date therefor to be mailed, first-class postage
         prepaid, to each Holder of Securities of such series at his address as
         it appears in the Security Register, not less than 10 days prior to
         such Special Record Date. The Trustee may, in its discretion, in the
         name and at the expense of the Company, cause a similar notice to be
         published at least once in an Authorized Newspaper, but such
         publication shall not be a condition precedent to the establishment of
         such Special Record Date. Notice of the proposed payment of such
         Defaulted Interest and the Special Record Date therefor having been so
         mailed, such Defaulted Interest shall be paid to the Persons in whose
         names the Securities of such series (or their respective Predecessor
         Securities) are registered at the close of business on such Special
         Record Date and shall no longer be payable pursuant to the following
         clause (2).

                  (2)      The Company may make payment of any Defaulted
         Interest on the Securities of any series in any other lawful manner not
         inconsistent with the requirements of any securities exchange on which
         such Securities may be listed, and upon such notice as may be required
         by such exchange, if, after notice given by the Company to the Trustee
         of the proposed payment pursuant to this clause (2), such manner of
         payment shall be deemed practicable by the Trustee.

                                       19

<PAGE>

         Subject to the foregoing provisions of this Section 307, each Security
delivered under this Indenture, upon registration of transfer of, in exchange
for or in lieu of, any other Security, shall carry the rights to interest
accrued and unpaid, and to accrue, which were carried by such other Security.

         SECTION 308. Person Deemed Owners.

         Prior to due presentment of a Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name such Security is registered as the owner of such
Security for the purpose of receiving payment of principal of, premium (if any)
and (subject to Sections 305 and 307) interest on such Security and for all
other purposes whatsoever, whether or not such Security be overdue, and neither
the Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

         SECTION 309. Cancellation.

         All Securities surrendered for payment, redemption, registration of
transfer or exchange or for credit against any sinking fund payment shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee.
All Securities so delivered shall be promptly canceled by the Trustee. The
Company may at any time deliver to the Trustee for cancellation any Securities
previously authenticated and delivered hereunder which the Company may have
acquired in any manner whatsoever, and all Securities so delivered shall be
promptly canceled by the Trustee. No Securities shall be authenticated in lieu
of or in exchange for any Securities canceled as provided in this Section 309,
except as expressly permitted by this Indenture. All canceled Securities held by
the Trustee shall be disposed of by the Trustee in accordance with its customary
procedures, unless the Trustee is otherwise directed by a Company Order.

         SECTION 310. Computation of Interest.

         Except as otherwise specified as contemplated by Section 301 for
Securities of any series, interest on the Securities of each series shall be
computed on the basis of a year comprising twelve 30-day months.

         SECTION 311. CUSIP Numbers.

         The Company in issuing the Securities may use "CUSIP" numbers (if then
generally in use), and, if so, the Trustee shall use "CUSIP" numbers in notices
of redemption as a convenience to Holders; provided that any such notice may
state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be affected
by any defect in or omission of such numbers.

                                  ARTICLE FOUR

                           SATISFACTION AND DISCHARGE

         SECTION 401. Satisfaction and Discharge of Indenture.

         This Indenture shall upon Company Request cease to be of further effect
with respect to Securities of a series, and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture with respect to Securities of such series, when

                  (1)      either

                  (A)      all Securities of such series theretofore
                           authenticated and delivered (other than (i)
                           Securities that have been destroyed, lost or stolen
                           and that have been replaced or paid as provided in
                           Section 306, and (ii) Securities for whose payment
                           money has theretofore been deposited in trust or
                           segregated and held in trust by the Company and
                           thereafter

                                       20

<PAGE>

                           repaid to the Company or discharged from such trust,
                           as provided in Section 1003) have been delivered to
                           the Trustee for cancellation;

                  (B)      with respect to all Outstanding Securities of such
                           series not theretofore delivered to the Trustee for
                           cancellation, the Company has deposited or caused to
                           be deposited with the Trustee under the terms of an
                           irrevocable trust agreement in form and substance
                           satisfactory to the Trustee, as trust funds in trust
                           solely for the benefit of the Holders of Outstanding
                           Securities for that purpose, money or U.S. Government
                           Obligations maturing as to principal and interest in
                           such amounts and at such times as will, together with
                           the income to accrue thereon, without consideration
                           of any reinvestment thereof, be sufficient to pay and
                           discharge the entire indebtedness on all Outstanding
                           Securities of such series not theretofore delivered
                           to the Trustee for cancellation for principal of,
                           premium (if any) and interest on or any Additional
                           Amounts with respect to such Securities to the Stated
                           Maturity or any Redemption Date contemplated by the
                           penultimate paragraph of this Section 401, as the
                           case may be; or

                  (C)      the Company has properly fulfilled such other means
                           of satisfaction and discharge as is specified, as
                           contemplated by Section 301, to be applicable to the
                           Securities of such series;

                  (2)      the Company has paid or caused to be paid all other
         sums payable hereunder by the Company with respect to the Outstanding
         Securities of such series;

                  (3)      the Company has complied with any other conditions
         specified pursuant to Section 301 to be applicable to the discharge of
         Securities of such series pursuant to this Section 401;

                  (4)      the Company has delivered to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that all conditions
         precedent herein provided for relating to the satisfaction and
         discharge of this Indenture with respect to the Outstanding Securities
         of such series have been complied with;

                  (5)      if the conditions set forth in Section 401(1) (A)

         have not been satisfied, and unless otherwise specified pursuant to
         Section 301 for the Securities of such series, the Company has
         delivered to the Trustee an Opinion of Counsel to the effect that the
         Holders of Securities of such series will not recognize income, gain or
         loss for United States federal income tax purposes as a result of such
         deposit, satisfaction and discharge and will be subject to United
         States federal income tax on the same amount and in the same manner and
         at the same time as would have been the case if such deposit,
         satisfaction and discharge had not occurred; and

                  (6)      no Default or Event of Default with respect to the
         Securities of such issue shall have occurred and be continuing on the
         date of such deposit or, in so far as clause (5) or (6) of Section 501
         is concerned, at any time in the period ending on the 91st day after
         the date of such deposit (it being understood that this condition shall
         not be deemed satisfied until the expiration of such period).

         For the purposes of this Indenture, "U.S. Government Obligations" means
direct noncallable obligations of, or noncallable obligations the payment of
principal of and interest on which is guaranteed by, the United States of
America, or to the payment of which obligations or guarantees the full faith and
credit of the United States of America is pledged, or beneficial interests in a
trust the corpus of which consists exclusively of money or such obligations or a
combination thereof.

         If any Outstanding Securities of such series are to be redeemed prior
to their Stated Maturity, whether pursuant to any optional redemption provisions
or in accordance with any mandatory sinking fund requirement, the trust
agreement referred to in subclause (B) of clause (1) of this Section 401 shall
provide therefor and the Company shall make such arrangements as are
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Company.

                                       21

<PAGE>

         Notwithstanding the satisfaction and discharge of this Indenture with
respect to the Outstanding Securities of such series pursuant to this Section
401, the obligations of the Company to the Trustee under Section 607, the
obligations of the Company to any Authenticating Agent under Section 614 and,
except for a discharge pursuant to subclause (A) of clause (1) of this Section
401, the obligations of the Company under Sections 305, 306, 404, 1001 and 1002
and the obligations of the Trustee under Section 402 and the last paragraph of
Section 1003 shall survive.

         SECTION 402. Application of Trust Money.

         Subject to the provisions of the last paragraph of Section 1003, all
money deposited with the Trustee pursuant to Section 401 shall be held in trust
and applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal of, premium (if
any) and interest on or any Additional Amounts with respect to Securities of
such Securities for the payment of which such money has been deposited with the
Trustee.

         SECTION 403. Discharge of Liability on Securities of Any Series.

         If this Section 403 is specified, as contemplated by Section 301, to be
applicable to Securities of any series, the Company shall be deemed to have paid
and discharged the entire indebtedness on all the Outstanding Securities of such
series, the obligation of the Company under this Indenture and the Securities of
such series to pay the principal of, premium (if any) and interest on and any
Additional Amounts with respect to Securities of such series shall cease,
terminate and be completely discharged, and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging such satisfaction and
discharge, when

                  (1)      the Company has complied with the provisions of
         Section 401 of this Indenture (other than any additional conditions
         specified pursuant to Sections 301 and 401(3) and except that the
         Opinion of Counsel referred to in Section 401(5) shall state that it is
         based on a ruling by the Internal Revenue Service or other change since
         the date hereof under applicable Federal income tax law) with respect
         to all Outstanding Securities of such series,

                  (2)      the Company has delivered to the Trustee a Company
         Request requesting such satisfaction and discharge,

                  (3)      the Company has complied with any other conditions
         specified pursuant to Section 301 to be applicable to the discharge of
         Securities of such series pursuant to this Section 403, and

                  (4)      the Company has delivered to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that all conditions
         precedent herein provided for relating to the discharge of the
         indebtedness on the Outstanding Securities of such series have been
         complied with.

         Upon the satisfaction of the conditions set forth in this Section 403
with respect to all the Outstanding Securities of any series, the terms and
conditions of such series, including the terms and conditions with respect
thereto set forth in this Indenture, shall no longer be binding upon, or
applicable to, the Company; provided that, the Company shall not be discharged
from any payment obligations in respect of Securities of such series which are
deemed not to be Outstanding under clause (iii) of the definition thereof if
such obligations continue to be valid obligations of the Company under
applicable law or pursuant to Section 305 or 306.

         SECTION 404. Reinstatement.

         If the Trustee or Paying Agent is unable to apply any money or U. S.
Government Obligations deposited with respect to Securities of any series in
accordance with Section 401 by reason of any legal proceeding or by reason of
any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the Company's obligations
under this Indenture with respect to the Securities of such series and the
Securities of such series shall be revived and reinstated as though no deposit
had occurred pursuant to Section 401 until such time as the Trustee or Paying
Agent is permitted to apply all such money or U.S. Government

                                       22

<PAGE>

Obligations in accordance with Section 401; provided, however, that if the
Company has made any payment of principal of, premium (if any) or interest on or
any Additional Amounts with respect to any Securities because of the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Securities to receive such payment from the money or U.
S. Government Obligations held by the Trustee or Paying Agent.

                                  ARTICLE FIVE

                                    REMEDIES

         SECTION 501. Events of Default.

         "Event of Default," wherever used herein with respect to Securities of
any series, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be occasioned by the provisions of Article
Thirteen or be voluntary or involuntary or effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body), unless it is either
inapplicable to a particular series or it is specifically deleted or modified in
or pursuant to the supplemental indenture or Board Resolution establishing such
series of Securities or in the form of Security for such series:

                  (1)      default in the payment of any interest on or any
         Additional Amounts with respect to any Security of that series when
         such interest or Additional Amounts become due and payable, and
         continuance of such default for a period of 60 days; or

                  (2)      default in the payment of the principal of or premium
         (if any) on any Security of that series at its Maturity; or

                  (3)      default in the deposit of any mandatory sinking fund
         payment, when and as due by the terms of a Security of that series, and
         continuance of such default for a period of 60 days; or

                  (4)      default in the performance or breach of any covenant
         of the Company in this Indenture (other than a covenant a default in
         whose performance or whose breach is elsewhere in this Section 501
         specifically dealt with or which has expressly been included in this
         Indenture solely for the benefit of one or more series of Securities
         other than that series), and continuance of such default or breach for
         a period of 90 days after there has been given, by registered or
         certified mail, to the Company by the Trustee or to the Company and the
         Trustee by the Holders of at least 25% in principal amount of all
         Outstanding Securities a written notice specifying such default or
         breach and requiring it to be remedied and stating that such notice is
         a "Notice of Default" hereunder; or

                  (5)      the entry by a court having jurisdiction in the
         premises of (A) a decree or order for relief in respect of the Company
         in an involuntary case or proceeding under any applicable federal or
         state bankruptcy, insolvency, reorganization or other similar law or
         (B) a decree or order adjudging the Company a bankrupt or insolvent, or
         approving as properly filed a petition seeking reorganization,
         arrangement, adjustment or composition of or in respect of the Company
         under any applicable federal or state law, or appointing a custodian,
         receiver, liquidator, assignee, trustee, sequestration or other similar
         official of the Company or of any substantial part of its property, or
         ordering the winding up or liquidation of its affairs, and the
         continuance of any such decree or order for relief or any such other
         decree or order unstayed and in effect for a period of 90 consecutive
         days; or

                  (6)      the commencement by the Company of a voluntary case
         or proceeding under any applicable federal or state bankruptcy,
         insolvency, reorganization or other similar law or of any other case or
         proceeding to be adjudicated a bankrupt or insolvent, or the consent by
         it to the entry of a decree or order for relief in respect of the
         Company in an involuntary case or proceeding under any applicable
         federal or state bankruptcy, insolvency, reorganization or other
         similar law or to the commencement of any bankruptcy or insolvency case
         or proceeding against it, or the filing by it, of a petition or answer
         or consent seeking reorganization or relief under any applicable
         federal or state law, or the consent by it to the filing of

                                       23

<PAGE>

         such petition or to the appointment of or taking possession by a
         custodian, receiver, liquidator, assignee, trustee, sequestrator or
         similar official of the Company or of any substantial part of its
         property, or the making by it of an assignment for the benefit of
         creditors, or the admission by it in writing of its inability to pay
         its debts generally as they become due; or

                  (7)      any other Event of Default provided with respect to
         Securities of that series.

         Notwithstanding the foregoing provisions of this Section 501, if the
principal of, premium (if any) or any interest on or any Additional Amounts with
respect to any Security is payable in a currency or currencies (including a
composite currency) other than Dollars and such currency or currencies are not
available to the Company for making payment thereof due to the imposition of
exchange controls or other circumstances beyond the control of the Company (a
"Conversion Event"), the Company will be entitled to satisfy its obligations to
Holders of the Securities by making such payment in Dollars in an amount equal
to the Dollar equivalent of the amount payable in such other currency, as
determined by the Company by reference to the Exchange Rate, as such Exchange
Rate is certified for customs purposes by the Federal Reserve Bank of New York
on the date of such payment, or, if such rate is not then available, on the
basis of the most recently available Exchange Rate. Notwithstanding the
foregoing provisions of this Section 501, any payment made under such
circumstances in Dollars where the required payment is in a currency other than
Dollars will not constitute an Event of Default under this Indenture.

         Promptly after the occurrence of a Conversion Event with respect to the
Securities of any series, the Company shall give written notice thereof to the
Trustee; and the Trustee, promptly after receipt of such notice, shall give
notice thereof in the manner provided in Section 107 to the Holders of such
series. Promptly after the making of any payment in Dollars as a result of a
Conversion Event with respect to the Securities of any series, the Company shall
give notice in the manner provided in Section 107 to the Holders of such series,
setting forth the applicable Exchange Rate and describing the calculation of
such payments.

         SECTION 502. Acceleration of Maturity; Rescission and Annulment.

         If an Event of Default with respect to any Securities of any series at
the time Outstanding occurs and is continuing, then in every such case the
Trustee or the Holders of not less than 25% in principal amount of the
Outstanding Securities of (i) the series affected by such default (in the case
of an Event of Default described in clause (1), (2), (3) or (7) of Section 501)
or (ii) all series of Securities (in the case of an Event of Default described
in clause (4) of Section 501) may declare the principal amount (or, if any such
Securities are Original Issue Discount Securities, such portion of the principal
amount as may be specified in the terms of that series) of all of the Securities
of the series affected by such default or all series, as the case may be, to be
due and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by Holders), and upon any such declaration such amount shall
become immediately due and payable. If an Event of Default described in clause
(5) or (6) of Section 501 shall occur, the principal amount of the Outstanding
Securities of all series ipso facto shall become and be immediately due and
payable without any declaration or other act on the part of the Trustee or any
Holder.

         At any time after such a declaration of acceleration with respect to
Securities of any series (or of all series, as the case may be) has been made
and before a judgment or decree for payment of the money due has been obtained
by the Trustee as hereinafter provided in this Article Five, the Holders of a
majority in principal amount of the Outstanding Securities of that series (or of
all series, as the case may be), by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if

                  (1)      the Company has paid or deposited with the Trustee a
                           sum sufficient to pay

                  (A)      all overdue interest on, and any Additional Amounts
                           with respect to, all Securities of that series (or of
                           all series, as the case may be),

                  (B)      the principal of or premium (if any) on any
                           Securities of that series (or of all series, as the
                           case may be) which have become due otherwise than by
                           such declaration of acceleration and interest thereon
                           at the rate or rates prescribed therefor in such
                           Securities (in the case of Original Issue Discount
                           Securities, the Securities' Yield to Maturity),

                                       24

<PAGE>

                  (C)      to the extent that payment of such interest is
                           lawful, interest upon overdue interest and any
                           Additional Amounts at the rate or rates prescribed
                           therefor in such Securities (in the case of Original
                           Issue Discount Securities, the Securities' Yield to
                           Maturity), and

                  (D)      all sums paid or advanced by the Trustee hereunder
                           and the reasonable compensation, expenses,
                           disbursements and advances of the Trustee, its agents
                           and counsel and all other amounts due the Trustee
                           under Section 607; and

                  (2)      all Events of Default with respect to Securities of
         that series (or of all series, as the case may be), other than the
         nonpayment of the principal of Securities of that series (or of all
         series, as the case may be) which have become due solely by such
         declaration of acceleration, have been cured or waived as provided in
         Section 513.

No such rescission shall affect any subsequent default or impair any right
consequent thereon.

         SECTION 503. Collection of Indebtedness and Suits for Enforcement by
                      Trustee.

         The Company covenants that if

                  (1)      default is made in the payment of any installment of
         interest on, or any Additional Amounts with respect to, any Security of
         any series when such interest or Additional Amounts shall have become
         due and payable and such default continues for a period of 60 days, or

                  (2)      default is made in the payment of the principal of or
         premium (if any) on any Security at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal of, premium (if any) and interest on or any Additional
Amounts with respect to such Securities and, to the extent that payment of such
interest shall be legally enforceable, interest on any overdue principal,
premium (if any) and on any overdue interest or Additional Amounts, at the rate
or rates prescribed therefor in such Securities (or in the case of Original
Issue Discount Securities, the Securities' Yield to Maturity), and, in addition
thereto, such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and all other
amounts due the Trustee under Section 607.

         If the Company fails to pay such amounts forthwith upon such demand,
the Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid, may
prosecute such proceeding to judgment or final decree and may enforce the same
against the Company or any other obligor upon such Securities and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of
the property of the Company or any other obligor upon such Securities, wherever
situated.

         If an Event of Default with respect to Securities of any series occurs
and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders of Securities of such series by
such appropriate judicial proceedings as the Trustee shall deem most effectual
to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy.

         SECTION 504. Trustee May File Proofs of Claim.

         In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal (or lesser amount
in the case of Original Issue Discount Securities) of the Securities shall then
be due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on the Company
for the payment of overdue principal of, premium

                                       25

<PAGE>

(if any), interest on or any Additional Amounts with respect to such Securities)
shall be entitled and empowered, by intervention in such proceeding or
otherwise,

                           (i)      to file and prove a claim for the whole
                  amount of principal (or lesser amount in the case of Original
                  Issue Discount Securities) (and premium, if any) and interest
                  and any Additional Amounts owing and unpaid in respect of the
                  Securities and to file such other papers or documents as may
                  be necessary or advisable to have the claims of the Trustee
                  (including any claim for the reasonable compensation,
                  expenses, disbursements and advances of the Trustee, its
                  agents and counsel) and of the Holders allowed in such
                  judicial proceeding, and

                           (ii)     to collect and receive any monies or other
                  property payable or deliverable on any such claims and to
                  distribute the same; and any custodian, receiver, assignee,
                  trustee, liquidator, sequestrator or other similar official in
                  any such judicial proceeding is hereby authorized by each
                  Holder to make such payments to the Trustee and, in the event
                  that the Trustee shall consent to the making of such payments
                  directly to the Holders, to pay to the Trustee any amount due
                  it for the reasonable compensation, expenses, disbursements
                  and advances of the Trustee, its agents and counsel, and any
                  other amounts due the Trustee under Section 607.

         Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceedings; provided, however,
that the Trustee may, on behalf of the Holders, vote for the election of a
trustee in bankruptcy or similar official.

         SECTION 505. Trustee May Enforce Claims Without Possession of
                      Securities or Coupons.

         All rights of action and claim under this Indenture or the Securities
may be prosecuted and enforced by the Trustee without possession of any of the
Securities or the production thereof in any proceeding relating thereto; any
such proceeding instituted by the Trustee shall be brought in its own name as
trustee of an express trust; after provision for the payment of the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 607, any
recovery of judgment shall be for the ratable benefit of the Holders of the
Securities in respect of which such judgment has been recovered.

         SECTION 506. Application of Money Collected.

         Subject to Article Thirteen, any money collected by the Trustee
pursuant to this Article Five shall be applied in the following order, at the
date or dates fixed by the Trustee and, in case of the distribution of such
money on account of principal of, premium (if any) or interest on or any
Additional Amounts with respect to any Securities, upon presentation of the
Securities, and the notation thereon of the payment if only partially paid and
upon surrender thereof if fully paid:

                  FIRST: To the payment of all amounts due the Trustee under
         Section 607;

                  SECOND: To the payment of the amounts then due and unpaid for
         principal of, premium (if any) and interest on and any Additional
         Amounts with respect to such Securities in respect of which or for the
         benefit of which such money has been collected, ratably, without
         preference or priority of any kind, according to the amounts due and
         payable on such Securities for principal of, premium (if any), interest
         on and Additional Amounts, respectively; and

                  THIRD: The balance, if any, to the Company.

         To the fullest extent allowed under applicable law, if for the purpose
of obtaining judgment against the Company in any court it is necessary to
convert the sum due in respect of the principal of, premium (if any) or interest
on or any Additional Amounts with respect to the Securities of any series (the
"Required Currency") into a currency in which a judgment will be rendered (the
"Judgment Currency"), the rate of exchange used shall be the

                                       26

<PAGE>

rate at which in accordance with normal banking procedures the Trustee could
purchase in The City of New York the Required Currency with the Judgment
Currency on the Business Day in The City of New York next preceding that on
which final judgment is given. Neither the Company nor the Trustee shall be
liable for any shortfall nor shall it benefit from any windfall in payments to
Holders of Securities under this Section 506 caused by a change in exchange
rates between the time the amount of a judgment against it is calculated as
above and the time the Trustee converts the Judgment Currency into the Required
Currency to make payments under this Section 506 to Holders of Securities, but
payment of such judgment shall discharge all amounts owed by the Company on the
claim or claims underlying such judgment.

         SECTION 507. Limitation on Suits.

         Subject to Section 508, no Holder of any Security of any series shall
have any right to institute any proceeding, judicial or otherwise, with respect
to this Indenture, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless

                  (1)      an Event of Default with respect to Securities of
         such series shall have occurred and be continuing and such Holder has
         previously given written notice to the Trustee of such continuing Event
         of Default;

                  (2)      the Holders of not less than 25% in principal amount
         of the Outstanding Securities of that series shall have made written
         request to the Trustee to institute proceedings in respect of such
         Event of Default in its own name as Trustee hereunder;

                  (3)      such Holder or Holders have offered to the Trustee
         reasonable indemnity against the costs, expenses and liabilities to be
         incurred in compliance with such request;

                  (4)      the Trustee for 60 days after its receipt of such
         notice, request and offer of indemnity has failed to institute any such
         proceeding; and

                  (5)      no direction inconsistent with such written request
         has been given to the Trustee during such 60-day period by the Holders
         of a majority in principal amount of the Outstanding Securities of that
         series; it being understood and intended that no one or more of such
         Holders shall have any right in any manner whatever by virtue of, or by
         availing of, any provision of this Indenture to affect, disturb or
         prejudice the rights of any other of such Holders, or to obtain or to
         seek to obtain priority or preference over any other of such Holders or
         to enforce any right under this Indenture, except in the manner herein
         provided and for the equal and ratable benefit of all of such Holders.

         SECTION 508. Unconditional Right of Holders to Receive Principal,
                      Premium and Interest.

         Notwithstanding any other provision in this Indenture, the Holder of
any Security shall have the right, which is absolute and unconditional, to
receive payment of the principal of, premium (if any) and (subject to Section
307) interest on or any Additional Amounts with respect to such Security on the
Stated Maturity or Maturities expressed in such Security (or, in the case of
redemption, on the Redemption Date) and to institute suit for the enforcement of
any such payment on or after such respective dates, and such rights shall not be
impaired or affected without the consent of such Holder.

         SECTION 509. Restoration of Rights and Remedies.

         If the Trustee or any Holder of any Security has instituted any
proceeding to enforce any right or remedy under this Indenture and such
proceeding has been discontinued or abandoned for any reason, or has been
determined adversely to the Trustee or to such Holder, then and in every such
case, the Company, the Trustee and the Holders shall, subject to any
determination in such proceeding, be restored severally and respectively to
their former positions hereunder, and thereafter all rights and remedies of the
Trustee and the Holders shall continue as though no such proceeding had been
instituted.

                                       27

<PAGE>

         SECTION 510. Rights and Remedies Cumulative.

         Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities in the last paragraph of
Section 306, no right or remedy herein conferred upon or reserved to the Trustee
or to the Holders is intended to be exclusive of any other right or remedy, and
every right and remedy shall, to the extent permitted by law, be cumulative and
in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

         SECTION 511. Delay or Omission Not Waiver.

         No delay or omission of the Trustee or of any Holder of any Securities
to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or
an acquiescence therein. Every right and remedy given by this Article Five or by
law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case
may be.

         SECTION 512. Control by Holders.

         With respect to Securities of any series, the Holders of a majority in
principal amount of the Outstanding Securities of such series shall have the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee, relating to or arising under an Event of Default described in
clause (1), (2), (3) or (7) of Section 501, and with respect to all Securities
the Holders of a majority in principal amount of all Outstanding Securities
shall have the right to direct the time, method and place of conducting any
remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee, not relating to or arising under such an Event of Default, provided
that in each such case

                  (1)      the Trustee shall have the right to decline to follow
         any such direction if the Trustee, being advised by counsel, determines
         that the action so directed may not lawfully be taken or would conflict
         with this Indenture or if the Trustee in good faith shall, by a
         Responsible Officer, determine that the proceedings so directed would
         involve it in personal liability or be unjustly prejudicial to the
         Holders not taking part in such direction, and

                  (2)      the Trustee may take any other action deemed proper
         by the Trustee which is not inconsistent with such direction.

         SECTION 513. Waiver of Past Defaults.

         Subject to Sections 508 and 902, the Holders of a majority in principal
amount of the Outstanding Securities of any series may on behalf of the Holders
of all the Securities of such series waive any past default hereunder with
respect to such series and its consequences, and the Holders of a majority in
principal amount of all Outstanding Securities may on behalf of the Holders of
all Securities waive any other past default hereunder and its consequences,
except in each case a default

                  (1)      in the payment of the principal of, premium (if any)
         or interest on or any Additional Amounts with respect to any Security,
         or

                  (2)      in respect of a covenant or provision hereof that
         under Article Nine cannot be modified or amended without the consent of
         the Holder of each Outstanding Security affected.

         Upon any such waiver, such default shall cease to exist, and any Event
of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other default or impair any right consequent thereon.

                                       28

<PAGE>

         SECTION 514. Undertaking for Costs.

         All parties to this Indenture agree, and each Holder of any Security by
his acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken or
omitted by it as Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant. The provisions
of this Section 514 shall not apply to any suit instituted by the Company, by
the Trustee, by any Holder or group of Holders holding in the aggregate more
than 10% in principal amount of the Outstanding Securities of any series, or by
any Holder for the enforcement of the payment of the principal of, premium (if
any) or interest on or any Additional Amounts with respect to any Security on or
after the Stated Maturity or Maturities expressed in such Security (or, in the
case of redemption, on or after the Redemption Date).

         SECTION 515. Waiver of Stay or Extension Laws.

         The Company covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, or plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such law
and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.

                                  ARTICLE SIX

                                  THE TRUSTEE

         SECTION 601. Certain Duties and Responsibilities.

         (a)      Except during the continuance of an Event of Default with
respect to the Securities of any series,

                  (1)      the Trustee undertakes to perform such duties and
         only such duties as are specifically set forth in this Indenture, and
         no implied covenants or obligations shall be read into this Indenture
         against the Trustee; and

                  (2)      in the absence of bad faith on its part, the Trustee
         may conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon certificates or
         opinions furnished to the Trustee and conforming to the requirements of
         this Indenture; but in the case of any such certificates or opinions
         that by any provision hereof are specifically required to be furnished
         to the Trustee, the Trustee shall be under a duty to examine the same
         to determine whether or not they conform to the requirements of this
         Indenture.

         (b)      In case an Event of Default has occurred and is continuing
with respect to the Securities of any series, the Trustee shall exercise such of
the rights and powers vested in it by this Indenture, and use the same degree of
care and skill in their exercise, as a prudent man would exercise or use under
the circumstances in the conduct of his own affairs.

         (c)      No provision of this Indenture shall be construed to relieve
the Trustee from liability for its own negligent action, its own negligent
failure to act or its own willful misconduct, except that

                  (1)      this clause (1) shall not be construed to limit the
         effect of subsection (a) of this Section 601;

                                       29

<PAGE>

                  (2)      the Trustee shall not be liable for any error of
         judgment made in good faith by a Responsible Officer, unless it shall
         be proved that the Trustee was negligent in ascertaining the pertinent
         facts;

                  (3)      the Trustee shall not be liable with respect to any
         action it takes or omits to take in good faith in accordance with the
         direction of the Holders of a majority in principal amount of the
         Outstanding Securities of any series or of all series, determined as
         provided in Section 512, relating to the time, method and place of
         conducting any proceeding for any remedy available to the Trustee, or
         exercising any trust or power conferred upon the Trustee, under this
         Indenture with respect to the Securities of such series; and

                  (4)      no provision of this Indenture shall require the
         Trustee to expend or risk its own funds or otherwise incur any
         financial liability in the performance of any of its duties hereunder,
         or in the exercise of any of its rights or powers, if it shall have
         reasonable grounds for believing that repayment of such funds or
         adequate indemnity against such risk or liability is not reasonably
         assured to it.

         (d)      Whether or not therein expressly so provided, every provision
of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this
Section 601.

         SECTION 602. Notice of Defaults.

         Within 90 days after the occurrence of any Default or Event of Default
with respect to the Securities of any series, the Trustee shall give notice of
such Default or Event of Default known to the Trustee to all Holders of
Securities of such series in the manner provided in Section 107, unless such
default shall have been cured or waived; provided, however, that, except in the
case of a Default or Event of Default in the payment of the principal of,
premium (if any) or interest on or any Additional Amounts with respect to any
Security of such series or in the payment of any sinking fund installment with
respect to Securities of such series, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive
committee or a trust committee of directors or Responsible Officers of the
Trustee in good faith determine that the withholding of such notice is in the
interest of the Holders of Securities of such series; and provided, further,
that in the case of any Default or Event of Default of the character specified
in Section 501(4) with respect to Securities of such series, no such notice to
Holders shall be given until at least 60 days after the occurrence thereof.

         SECTION 603. Certain Rights of Trustee.

         Subject to the provisions of Section 601:

         (a)      the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note, coupon, other evidence of indebtedness or other paper or document believed
by it to be genuine and to have been signed or presented by the proper party or
parties;

         (b)      any request or direction of the Company mentioned herein shall
be sufficiently evidenced by a Company Request or Company Order and any
resolution of the Board of Directors may be sufficiently evidenced by a Board
Resolution;

         (c)      whenever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Trustee (unless other evidence
be herein specifically prescribed) may, in the absence of bad faith on its part,
rely upon an Officers' Certificate;

         (d)      the Trustee may consult with counsel and the written advice of
such counsel or any Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted by it
hereunder in good faith and in reliance thereon;

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<PAGE>

         (e)      the Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Indenture at the request or direction
of any of the Holders pursuant to this Indenture, unless such Holders shall have
offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities that might be incurred by it in compliance with such
request or direction;

         (f)      the Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, coupon, other evidence of indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be
entitled to examine the books, records and premises of the Company, personally
or by agent or attorney;

         (g)      the Trustee may execute any of the trusts or powers hereunder
or perform any duties hereunder either directly or by or through agents or
attorneys and, except for any Affiliates of the Trustee, the Trustee shall not
be responsible for any misconduct or negligence on the part of any agent or
attorney appointed with due care by it hereunder;

         (h)      the Trustee shall not be charged with knowledge of any Default
or Event of Default with respect to the Securities of any series for which it is
acting as Trustee unless either (1) a Responsible Officer shall have actual
knowledge of such Default or Event of Default or (2) written notice of such
Default or Event of Default shall have been given to the Trustee by the Company
or any other obligor on such Securities or by any Holder of such Securities; and

         (i)      the Trustee shall not be liable for any action taken, suffered
or omitted by it in good faith and believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Indenture.

         SECTION 604. Not Responsible for Recitals or Issuance of Securities.

         The recitals contained herein and in the Securities, except the
Trustee's certificates of authentication, shall be taken as the statements of
the Company, and the Trustee assumes no responsibility for their correctness.
The Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities. The Trustee shall not be accountable for the use
or application by the Company of Securities or the proceeds thereof.

         SECTION 605. May Hold Securities.

         The Trustee, any Authenticating Agent, any Paying Agent, any Security
Registrar or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Securities and, subject to Sections
608 and 613, may otherwise deal with the Company with the same rights it would
have if it were not Trustee, Authenticating Agent, Paying Agent, Security
Registrar or such other agent.

         SECTION 606. Money Held in Trust.

         Money held by the Trustee in trust hereunder need not be segregated
from other funds except to the extent required by law. The Trustee shall be
under no liability for interest on any money received by it hereunder except as
otherwise agreed in writing with the Company.

         SECTION 607. Compensation and Reimbursement.

         The Company agrees

                  (1)      to pay to the Trustee from time to time reasonable
         compensation for all services rendered by it hereunder (which
         compensation shall not be limited by any provision of law in regard to
         the compensation of a trustee of an express trust);

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<PAGE>

                  (2)      except as otherwise expressly provided herein, to
         reimburse the Trustee upon its request for all reasonable expenses,
         disbursements and advances incurred or made by the Trustee in
         accordance with any provision of this Indenture (including the
         reasonable compensation and the reasonable expenses and disbursements
         of its agents and counsel), except any such expense, disbursement or
         advance as may be attributable to its negligence or bad faith; and

                  (3)      to indemnify the Trustee and each of its directors,
         officers, employees, agents and/or representatives for, and to hold
         each of them harmless against, any loss, liability or expense incurred
         without negligence or bad faith on each of their part, arising out of
         or in connection with the acceptance or administration of the trust or
         trusts hereunder, including the costs and expenses of defending
         themselves against any claim or liability in connection with the
         exercise or performance of any of the Trustees' powers or duties
         hereunder.

         As security for the performance of the obligations of the Company under
this Section 607, the Trustee shall have a lien prior to the Securities on all
property and funds held or collected by the Trustee as such, except funds held
in trust for the payment of principal of, premium (if any) or interest on or any
Additional Amounts with respect to particular Securities.

         Any expenses and compensation for any services rendered by the Trustee
after the occurrence of an Event of Default specified in clause (5) or (6) of
Section 501 shall constitute expenses and compensation for services of
administration under all applicable federal or state bankruptcy, insolvency,
reorganization or other similar laws.

         The provisions of this Section 607 and any lien arising hereunder shall
survive the resignation or removal of the Trustee or the discharge of the
Company's obligations under this Indenture and the termination of this
Indenture.

         SECTION 608. Disqualification; Conflicting Interests.

         (a)      If the Trustee has or shall acquire any conflicting interest,
as defined in this Section 608, with respect to the Securities of any series, it
shall, within 90 days after ascertaining that it has such conflicting interest,
either eliminate such conflicting interest or resign with respect to the
Securities of that series in the manner and with the effect hereinafter
specified in this Article Six.

         (b)      In the event that the Trustee shall fail to comply with the
provisions of subsection (a) of this Section 608 with respect to the Securities
of any series, the Trustee shall, within 10 days after the expiration of such
90-day period, transmit by mail to all Holders of Securities of that series, as
their names and addresses appear in the Security Register, notice of such
failure.

         (c)      For the purposes of this Section 608, the term "conflicting
interest" shall have the meaning specified in Section 310(b) of the Trust
Indenture Act and the Trustee shall comply with Section 310(b) of the Trust
Indenture Act; provided, that there shall be excluded from the operation of
Section 310 (b) (1) of the Trust Indenture Act with respect to the Securities of
any series any indenture or indentures under which other securities, or
certificates of interest or participation in other securities, of the Company
are outstanding, if the requirements for such exclusion set forth in Section
310(b) (1) of the Trust Indenture Act are met. For purposes of the preceding
sentence, the optional provision permitted by the second sentence of Section 310
(b) (9) of the Trust Indenture Act shall be applicable.

         SECTION 609. Corporate Trustee Required; Eligibility.

         There shall at all times be a Trustee hereunder which shall be a
corporation organized and doing business under the laws of the United States of
America, any State thereof or the District of Columbia, authorized under such
laws to exercise corporate trust powers, having a combined capital and surplus
of at least $50 million and subject to supervision or examination by federal or
state (or the District of Columbia) authority. If such corporation publishes
reports of condition at least annually, pursuant to law or to the requirements
of said supervising or examining authority, then for the purposes of this
Section 609, the combined capital and surplus of such corporation shall be

                                       32

<PAGE>

deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section 609, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article Six.

         The Indenture shall always have a Trustee who satisfies the
requirements of Sections 310 (a) (1), 310 (a) (2) and 310 (a) (5) of the Trust
Indenture Act.

         SECTION 610. Resignation and Removal; Appointment of Successor.

         (a)      No resignation or removal of the Trustee and no appointment of
a successor Trustee pursuant to this Article Six shall become effective until
the acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of Section 611.

         (b)      The Trustee may resign at any time with respect to the
Securities of one or more series by giving written notice thereof to the
Company. If the instrument of acceptance by a successor Trustee required by
Section 611 shall not have been delivered to the resigning Trustee within 30
days after the giving of such notice of resignation, the resigning Trustee may
petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.

         (c)      The Trustee may be removed at any time with respect to the
Securities of any series by Act of the Holders of a majority in principal amount
of the Outstanding Securities of such series, delivered to the Trustee and to
the Company.

         (d)      If at any time:

                  (1)      the Trustee shall fail to comply with Section 608(a)
         after written request therefor by the Company or by any Holder who has
         been a bona fide Holder of a Security for at least six months, or

                  (2)      the Trustee shall cease to be eligible under Section
         609 and shall fail to resign after written request therefor by the
         Company or by any such Holder of Securities, or

                  (3)      the Trustee shall become incapable of acting or shall
         be adjudged a bankrupt or insolvent or a receiver of the Trustee or of
         its property shall be appointed or any public officer shall take charge
         or control of the Trustee or of its property or affairs for the purpose
         of rehabilitation, conservation or liquidation, then, in any such case,
         (i) the Company by a Board Resolution may remove the Trustee with
         respect to all Securities, or (ii) subject to Section 514, any Holder
         who has been a bona fide Holder of a Security for at least six months
         may, on behalf of himself and all others similarly situated, petition
         any court of competent jurisdiction for the removal of the Trustee with
         respect to all Securities and the appointment of a successor Trustee or
         Trustees.

         (e)      If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, with
respect to the Securities of one or more series, the Company, by a Board
Resolution, shall promptly appoint a successor Trustee or Trustees with respect
to the Securities of that or those series (it being understood that any such
successor Trustee may be appointed with respect to the Securities of one or more
or all of such series and that at any time there shall be only one Trustee with
respect to the Securities of any particular series) and such successor Trustee
or Trustees shall comply with the applicable requirements of Section 611. If no
successor Trustee with respect to the Securities of any series shall have been
so appointed by the Company and accepted appointment in the manner required by
Section 611, any Holder who has been a bona fide Holder of a Security of such
series for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
appointment of a successor Trustee with respect to the Securities of such
series.

         (f)      The Company shall give notice of each resignation and each
removal of the Trustee with respect to the Securities of any series and each
appointment of a successor Trustee with respect to the Securities of any series
by mailing written notice of such event by first-class mail, postage prepaid, to
all Holders of Securities of such series

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<PAGE>

as their names and addresses appear in the Security Register. Each notice shall
include the name of the successor Trustee with respect to the Securities of such
series and the address of its Corporate Trust Office.

         SECTION 611. Acceptance of Appointment by Successor.

         (a)      In case of the appointment hereunder of a successor Trustee
with respect to all Securities, every such successor Trustee so appointed shall
execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request
of the Company or the successor Trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder.

         (b)      In case of the appointment hereunder of a successor Trustee
with respect to the Securities of one or more (but not all) series, the Company,
the retiring Trustee and each successor Trustee with respect to the Securities
of one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor Trustee relates, (2)
if the retiring Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm
that all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Securities of that or those series as to which the retiring
Trustee is not retiring shall continue to be vested in the retiring Trustee and
(3) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, it being understood that nothing herein or
in such supplemental indenture shall constitute such Trustees co-trustees of the
same trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such supplemental
indenture, the resignation or removal of the retiring Trustee shall become
effective to the extent provided therein and each such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates; but, on request of the Company or any successor Trustee, such
retiring Trustee shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder with
respect to the Securities of that or those series to which the appointment of
such successor Trustee relates.

         (c)      Upon request of any such successor Trustee, the Company shall
execute any and all instruments for more fully and certainly vesting in and
confirming to such successor Trustee all such rights, powers and trusts referred
to in paragraph (a) or (b) of this Section 611, as the case may be.

         (d)      No successor Trustee shall accept its appointment unless at
the time of such acceptance such successor Trustee shall be qualified and
eligible under this Article Six.

         SECTION 612. Merger, Conversion, Consolidation or Succession to
Business.

         Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all the corporate trust business
of the Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article Six,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Securities shall have been authenticated,
but not delivered, by the Trustee then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect
as if such successor Trustee had itself authenticated such Securities.

         SECTION 613. Preferential Collection of Claims Against Company.

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<PAGE>

         The Trustee shall comply with Section 311(a) of the Trust Indenture
Act, excluding any creditor relationship described in Section 311 (b) of the
Trust Indenture Act. A Trustee who has resigned or been removed shall be subject
to Section 311 (a) of the Trust Indenture Act to the extent indicated therein.

         SECTION 614. Appointment of Authenticating Agent.

         The Trustee may appoint an Authenticating Agent or Agents that shall be
authorized to act on behalf of the Trustee to authenticate Securities issued
upon original issue and upon exchange, registration of transfer or partial
redemption or pursuant to Section 306, and Securities so authenticated shall be
entitled to the benefits of this Indenture and shall be valid and obligatory for
all purposes as if authenticated by the Trustee hereunder. Wherever reference is
made in this Indenture to the authentication and delivery of Securities by the
Trustee or the Trustee's certificate of authentication, such reference shall be
deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States of America, any state thereof
or the District of Columbia, having a combined capital and surplus of not less
than $50 million or equivalent amount expressed in a foreign currency and
subject to supervision or examination by federal or state (or the District of
Columbia) authority or authority of such country. If such Authenticating Agent
publishes reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes
of this Section 614, the combined capital and surplus of such Authenticating
Agent shall be deemed to be its combined capital and surplus as set forth in its
most recent report of condition so published. If at any time an Authenticating
Agent shall cease to be eligible in accordance with the provisions of this
Section 614, such Authenticating Agent shall resign immediately in the manner
and with the effect specified in this Section 614.

         Any corporation into which an Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to the corporate agency or
corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section 614, without the execution or filing of any paper or any
further act on the part of the Trustee or the Authenticating Agent.

         An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and to the Company. The Trustee may at any time terminate
the agency of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 614, the Trustee may appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall mail
written notice of such appointment by first-class mail, postage prepaid, to all
Holders as their names and addresses appear in the Security Register. Any
successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section 614.

         The Company agrees to pay to each Authenticating Agent from time to
time reasonable compensation for its services under this Section 614.

         If an appointment is made pursuant to this Section 614, the Securities
may have endorsed thereon, in addition to the Trustee's certificate of
authentication, an alternate certificate of authentication in the following
form:

         This is one of the Securities of the series designated therein referred
to in the within -mentioned Indenture.

                                   _____________________________________________
                                   As Trustee

                                   By:__________________________________________
                                                As Authenticating Agent

                                   By:__________________________________________
                                                Authorized Signatory

                                       35

<PAGE>

         Notwithstanding any provision of this Section 614 to the contrary, if
at any time any Authenticating Agent appointed hereunder with respect to any
series of Securities shall not also be acting as the Security Registrar
hereunder with respect to any series of Securities, then, in addition to all
other duties of an Authenticating Agent hereunder, such Authenticating Agent
shall also be obligated: (i) to furnish to the Security Registrar promptly all
information necessary to enable the Security Registrar to maintain at all times
an accurate and current Security Register; and (ii) prior to authenticating any
Security denominated in a foreign currency, to ascertain from the Company the
units of such foreign currency that are required to be determined by the Company
pursuant to Section 302.

                                 ARTICLE SEVEN

                HOLDER'S LISTS AND REPORTS BY TRUSTEE AND COMPANY

         SECTION 701. Company to Furnish Trustee Names and Addresses of Holders.

         With respect to each series of Securities, the Company will furnish or
cause to be furnished to the Trustee:

         (a)      semi-annually, not more than 15 days after each Regular Record
Date relating to that series (or, if there is no Regular Record Date relating to
that series, on January 1 and July 1), a list, in such form as the Trustee may
reasonably require, of the names and addresses of the Holders of that series as
of such dates, and

         (b)      at such other times as the Trustee may request in writing,
within 30 days after the receipt by the Company of any such request, a list of
similar form and content, such list to be dated as of a date not more than 15
days prior to the time such list is furnished; provided, that so long as the
Trustee is the Security Registrar, the Company shall not be required to furnish
or cause to be furnished such a list to the Trustee. The Company shall otherwise
comply with Section 310(a) of the Trust Indenture Act.

         SECTION 702. Preservation of Information; Communications to Holders.

         (a)      The Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Holders of each series
contained in the most recent list furnished to the Trustee as provided in
Section 701 and the names and addresses of Holders of each series received by
the Trustee in its capacity as Security Registrar. The Trustee may destroy any
list furnished to it as provided in Section 701 upon receipt of a new list so
furnished. The Trustee shall otherwise comply with Section 310(a) of the Trust
Indenture Act.

         (b)      Holders of Securities may communicate pursuant to Section
312(b) of the Trust Indenture Act with other Holders with respect to their
rights under this Indenture or under the Securities. The Company, the Trustee,
the Security Registrar and any other Person shall have the protection of Section
312(c) of the Trust Indenture Act.

         SECTION 703. Reports by Trustee.

         (a)      Within 60 days after May 15 of each year after the execution
of this Indenture, the Trustee shall transmit by mail to Holders a brief report
dated as of such May 15 that complies with Section 313(a) of the Trust Indenture
Act. The Trustee shall comply with Section 313 (b) of the Trust Indenture Act.
The Trustee shall transmit by mail all reports as required by Sections 313(c)
and 313(d) of the Trust Indenture Act.

                                       36

<PAGE>

         (b)      A copy of each report pursuant to subsection (a) of this
Section 703 shall, at the time of its transmission to Holders, be filed by the
Trustee with each stock exchange upon which any Securities are listed, with the
Commission and with the Company. The Company will notify the Trustee when any
Securities are listed on any stock exchange.

         SECTION 704. Reports by Company.

         The Company shall file with the Trustee, within 15 days after the
Company is required to file the same with the Commission, copies of the annual
reports and of the information, documents and other reports (or copies of such
portions of any of the foregoing as the Commission may from time to time by
rules and regulations prescribe) which the Company may be required to file with
the Commission pursuant to Section 13 or Section 15(d) of the Securities
Exchange Act of 1934, as amended, and shall otherwise comply with Section 314(a)
of the Trust Indenture Act.

                                 ARTICLE EIGHT

         CONSOLIDATION, AMALGAMATION, CONVEYANCE, TRANSFER OR LEASE

         SECTION 801. Company May Consolidate, Etc., Only on Certain Terms.

         The Company shall not consolidate or amalgamate with or merge into any
other Person or convey, transfer or lease its properties and assets
substantially as an entirety to any Person, unless:

                  (1)      either (a) the Company shall be the continuing Person
         or (b) the Person (if other than the Company or any of its
         Subsidiaries) formed by such consolidation or amalgamation or into
         which the Company is merged, or the Person which acquires, by sale,
         lease, conveyance, transfer or other disposition, all or substantially
         all of the assets of the Company, shall expressly assume, by a
         supplemental indenture, the due and punctual payment of the principal
         of (and premium, if any) and interest on or any Additional Amounts with
         respect to the Securities and the performance of the Company's
         covenants and obligations under this Indenture and the Securities;

                  (2)      immediately after giving effect to such transaction,
         and treating any indebtedness that becomes Indebtedness of the Company
         or a Subsidiary of the Company as a result of such transaction as
         having been incurred by the Company or such Subsidiary at the time of
         such transaction, no Default or Event of Default, shall have happened
         and be continuing; and

                  (3)      the Company has delivered to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that such
         consolidation, amalgamation, merger, conveyance, transfer or lease and,
         if a supplemental indenture is required in connection with such
         transaction, such supplemental indenture comply with this Article Eight
         and that all conditions precedent herein provided for relating to such
         transaction have been complied with.

         SECTION 802. Successor Person Substituted.

         Upon any consolidation or amalgamation by the Company with or merger by
the Company into any other Person or any conveyance, transfer or lease of the
properties and assets of the Company substantially as an entirety in accordance
with Section 801, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is
made shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein, and thereafter, except in
the case of such lease, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Securities.

                                       37

<PAGE>

                                  ARTICLE NINE

                            SUPPLEMENTAL INDENTURES

         SECTION 901. Supplemental Indentures Without Consent of Holders.

         Without the consent of any Holders, the Company, when authorized by a
Board Resolution, and the Trustee, at any time and from time to time, may enter
into one or more indentures supplemental hereto, in form satisfactory to the
Trustee, for any of the following purposes:

                  (1)      to evidence the succession of another Person to the
         Company and the assumption by any such successor of the covenants of
         the Company herein and in the Securities; or

                  (2)      to add to the covenants of the Company for the
         benefit of the Holders of all or any series of Securities (and if such
         covenants are to be for the benefit of less than all series of
         Securities, stating that such covenants are expressly being included
         solely for the benefit of such series) to convey, transfer, assign,
         mortgage or pledge any property to or with the Trustee or otherwise
         secure any series of the Securities or to surrender any right or power
         herein conferred upon the Company; or

                  (3)      to add any additional Events of Default with respect
         to all or any series of the Securities (and, if such Event of Default
         is applicable to less than all series of Securities, specifying the
         series to which such Event of Default is applicable); or

                  (4)      to change or eliminate any of the provisions of this
         Indenture, provided that any such change or elimination shall become
         effective only when there is no Security Outstanding of any series
         created prior to the execution of such supplemental indenture which is
         adversely affected by such change in or elimination of such provision;
         or

                  (5)      to secure the Securities; or

                  (6)      to supplement any of the provisions of this Indenture
         to such extent as shall be necessary to permit or facilitate the
         defeasance and discharge of any series of Securities pursuant to
         Section 401; provided, however, that any such action shall not
         adversely affect the interest of the Holders of Securities of such
         series or any other series of Securities in any material respect; or

                  (7)      to establish the form or terms of Securities of any
         series as permitted by Sections 201 and 301; or

                  (8)      to evidence and provide for the acceptance of
         appointment hereunder by a successor Trustee with respect to the
         Securities of one or more series and to add to or change any of the
         provisions of this Indenture as shall be necessary to provide for or
         facilitate the administration of the trusts hereunder by more than one
         Trustee, pursuant to the requirements of Section 611(b); or

                  (9)      to cure any ambiguity, to correct or supplement any
         provision herein which may be defective or inconsistent with any other
         provision herein, or to make any other provisions with respect to
         matters or questions arising under this Indenture, provided such other
         provisions as may be made shall not adversely affect the interests of
         the Holders of Securities of any series in any material respect.

         SECTION 902. Supplemental Indentures With Consent of Holders.

         With the consent of the Holders of a majority in principal amount of
the Outstanding Securities of all series affected by such supplemental indenture
(acting as one class), by Act of said Holders delivered to the Company and the
Trustee, the Company, when authorized by a Board Resolution, and the Trustee may
enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the
Holders of

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<PAGE>

Securities of such series under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each
Outstanding Security affected thereby,

                  (1)      change the Stated Maturity of the principal of, or
         any installment of principal of or interest on, any Security, or reduce
         the principal amount thereof or the rate of interest thereon, any
         Additional Amounts with respect thereto or any premium payable upon the
         redemption thereof, or change any obligation of the Company to pay
         Additional Amounts (except as contemplated by Section 801(1) and
         permitted by Section 901(1)), or reduce the amount of the principal of
         an Original Issue Discount Security that would be due and payable upon
         a declaration of acceleration of the Maturity thereof pursuant to
         Section 502, or change any Place of Payment where, or the coin or
         currency or currencies (including composite currencies) in which, any
         Security or any premium or any interest thereon or Additional Amounts
         with respect thereto is payable, or impair the right to institute suit
         for the enforcement of any such payment on or after the Stated Maturity
         thereof (or, in the case of redemption, on or after the Redemption
         Date), or modify the provisions of this Indenture with respect to the
         subordination of any Security in a manner adverse to the holder
         thereof,

                  (2)      reduce the percentage in principal amount of
         Outstanding Securities, the consent of whose Holders is required for
         any such supplemental indenture, or the consent of whose Holders is
         required for any waiver (of compliance with certain provisions of this
         Indenture or certain defaults hereunder and their consequences)
         provided for in this Indenture, or

                  (3)      modify any of the provisions of this Section 902,
         Section 513 or Section 1006, except to increase any such percentage or
         to provide with respect to any particular series the right to condition
         the effectiveness of any supplemental indenture as to that series on
         the consent of the Holders of a specified percentage of the aggregate
         principal amount of Outstanding Securities of such series (which
         provision may be made pursuant to Section 301 without the consent of
         any Holder) or to provide that certain other provisions of this
         Indenture cannot be modified or waived without the consent of the
         Holder of each Outstanding Security affected thereby, provided,
         however, that this clause (3) shall not be deemed to require the
         consent of any Holder with respect to changes in the references to "the
         Trustee" and concomitant changes in this Section 902 and Section 1006,
         or the deletion of this proviso, in accordance with the requirements of
         Section 611 (b) and Section 901(7).

A supplemental indenture which changes or eliminates any covenant or other
provision of this Indenture which has expressly been included solely for the
benefit of one or more particular series of Securities, or which modifies the
rights of the Holders of Securities of such series with respect to such covenant
or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

         It shall not be necessary for any Act of Holders under this Section 902
to approve the particular form of any proposed supplemental indenture, but it
shall be sufficient if such Act shall approve the substance thereof.

         SECTION 903. Execution of Supplemental Indentures.

         In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article Nine or the modifications
thereby of the trusts created by this Indenture, the Trustee shall be entitled
to receive, and (subject to Section 601) shall be fully protected in relying
upon an Opinion of Counsel stating that the execution of such supplemental
indenture is authorized or permitted by this Indenture. The Trustee may, but
shall not be obligated to, enter into any such supplemental indenture which
affects the Trustee's own rights, duties, immunities or liabilities under this
Indenture or otherwise.

         SECTION 904. Effect of Supplemental Indentures.

         Upon the execution of any supplemental indenture under this Article
Nine, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes; and
every Holder of Securities theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby.

                                       39

<PAGE>

         SECTION 905. Conformity With Trust Indenture Act.

         Every supplemental indenture executed pursuant to this Article Nine
shall conform to the requirements of the Trust Indenture Act as then in effect.

         SECTION 906. Reference in Securities to Supplemental Indentures.

         Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article Nine may, and
shall if required by the Trustee, bear a notation in form approved by the
Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities of any series so modified as to
conform, in the opinion of the Trustee and the Company, to any such supplemental
indenture may be prepared and executed by the Company and authenticated and
delivered by the Trustee in exchange for Outstanding Securities of such series.

                                  ARTICLE TEN

                                   COVENANTS

         SECTION 1001. Payment of Principal, Premium and Interest.

         The Company covenants and agrees for the benefit of the Holders of each
series of Securities that it will duly and punctually pay the principal of,
premium (if any) and interest on and any Additional Amounts with respect to the
Securities of that series in accordance with the terms of the Securities and
this Indenture.

         SECTION 1002. Maintenance of Office or Agency.

         The Company will maintain in the Borough of Manhattan, City of New
York, an office or agency (which may be an office of the Trustee, the Registrar
or the Paying Agent) where Securities may be presented or surrendered for
payment, where Securities may be surrendered for registration of transfer or
exchange and where notices and demands to or upon the Company in respect of
Securities and this Indenture may be served. Unless otherwise designated by the
Company by written notice to the Trustee, such office or agency shall be the
office of the agent of the Trustee in the City of New York which, on the date
hereof, is located at 55 Water Street, North Building, Room 234, Windows 20 and
21, New York, New York 10041, Attention: Corporate Trust Services. The Company
will give prompt written notice to the Trustee of the location, and any change
in the location, of such office or agency. If at any time the Company shall fail
to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee and
the Company hereby appoints the Trustee its agent to receive all presentations,
surrenders, notices and demands.

         The Company may also from time to time designate one or more other
offices or agencies where the Securities of one or more series may be presented
or surrendered for any or all such purposes and may from time to time rescind
such designations; provided, however, that no such designation or rescission
shall in any manner relieve the Company of its obligation to maintain an office
or agency in each Place of Payment for Securities of any series for such
purposes. The Company will give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other
office or agency.

         SECTION 1003. Money for Securities Payments to be Held in Trust.

         If the Company, any Subsidiary or any of their respective Affiliates
shall at any time act as Paying Agent with respect to any series of Securities,
such Paying Agent will, on or before each due date of the principal of, premium
(if any) or interest on or any Additional Amounts with respect to any of the
Securities of that series, segregate and hold in trust for the benefit of the
Persons entitled thereto a sum sufficient to pay the principal, premium (if any)
or interest or any Additional Amounts so becoming due until such sums shall be
paid to such Persons or otherwise disposed of as herein provided and will
promptly notify the Trustee of its action or failure so to act.

                                       40

<PAGE>

         Whenever the Company shall have one or more Paying Agents for any
series of Securities, the Company will, on or before each due date of the
principal of, premium (if any) or interest on any Securities of that series,
deposit with a Paying Agent a sum sufficient to pay the principal of, premium
(if any) or interest so becoming due, such sum to be held in trust for the
benefit of the Persons entitled to such principal, premium or interest, and
(unless such Paying Agent is the Trustee) the Company will promptly notify the
Trustee of its action or failure so to act.

         The Company will cause each Paying Agent for any series of Securities
other than the Trustee to execute and deliver to the Trustee an instrument in
which such Paying Agent shall agree with the Trustee, subject to the provisions
of this Section 1003, that such Paying Agent will:

                  (1)      hold all sums held by it for the payment of the
         principal of, premium (if any) or interest on or any Additional Amounts
         with respect to Securities of that series in trust for the benefit of
         the Persons entitled thereto until such sums shall be paid to such
         Persons or otherwise disposed of as herein provided;

                  (2)      give the Trustee notice of any default by the Company
         (or any other obligor upon the Securities of that series) in the making
         of any payment of principal of, premium (if any) or interest on or any
         Additional Amounts with respect to the Securities of that series; and

                  (3)      at any time during the continuance of any such
         default, upon the written request of the Trustee, forthwith pay to the
         Trustee all sums so held in trust by such Paying Agent.

         The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in
trust by the Company or such Paying Agent, such sums to be held by the Trustee
upon the same trusts as those upon which sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such
Paying Agent shall be released from all further liability with respect to such
money.

         Any money deposited with the Trustee or any Paying Agent, or then held
by the Company, in trust for the payment of the principal of, premium (if any)
or interest on or any Additional Amounts with respect to any Security of any
series and remaining unclaimed for three years after such principal of, premium
(if any) or interest on or any Additional Amounts with respect to any Securities
have become due and payable shall, unless otherwise required by mandatory
provisions of applicable escheat, or abandoned or unclaimed property law, be
paid to the Company on Company Request, or (if then held by the Company) shall
be discharged from such trust; and the Holder of such Security shall thereafter,
as an unsecured general creditor, look only to the Company for payment thereof,
and all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to
be published once, in an Authorized Newspaper in The Borough of Manhattan, The
City of New York and in such other Authorized Newspapers as the Trustee shall
deem appropriate, notice that such money remains unclaimed and that, after a
date specified herein, which shall not be less than 30 days from the date of
such publication, any unclaimed balance of such money then remaining will,
unless otherwise required by mandatory provisions of applicable escheat, or
abandoned or unclaimed property law, be repaid to the Company.

         SECTION 1004. Existence.

         Subject to Article Eight, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence.

         SECTION 1005. Statement by Officers as to Default.

         The Company will deliver to the Trustee, within 120 days after the end
of each fiscal year of the Company ending after the date hereof so long as any
Security is outstanding hereunder, an Officers' Certificate, complying with
Section 314 (a) (4) of the Trust Indenture Act and stating that a review of the
activities of the Company during such year and of performance under this
Indenture has been made under the supervision of the signers thereof and whether
or not to the best of their knowledge, based upon such review, the Company is in
default in the

                                       41

<PAGE>

performance, observance or fulfillment of any of its covenants and other
obligations under this Indenture, and if the Company shall be in default,
specifying each such default known to them and the nature and status thereof.
One of the officers signing the Officers' Certificate delivered pursuant to this
Section 1005 shall be the principal executive, financial or accounting officer
of the Company.

         For purposes of this Section 1005, such compliance shall be determined
without regard to any period of grace or requirement of notice provided under
this Indenture.

         SECTION 1006. Waiver of Certain Covenants.

         The Company may omit in any particular instance to comply with any
covenant or condition set forth in Sections 1001 through 1005, inclusive, or any
covenant added for the benefit of any series of Securities as contemplated by
Section 301 (unless otherwise specified pursuant to Section 301) if before or
after the time for such compliance the Holders of a majority in principal amount
of the Outstanding Securities of all series affected by such omission (acting as
one class) shall, by Act of such Holders, either waive such compliance in such
instance or generally waive compliance with such covenant or condition, but no
such waiver shall extend to or affect such covenant or condition except to the
extent so expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee in respect of any such
covenant or condition shall remain in full force and effect.

         SECTION 1007. Additional Amounts.

         If the Securities of a series expressly provide for the payment of
Additional Amounts, the Company will pay to the Holder of any Security of such
series Additional Amounts as expressly provided therein. Whenever in this
Indenture there is mentioned, in any context, the payment of the principal of,
or premium (if any) or interest on any Security of any series or the net
proceeds received from the sale or exchange of any Security of any series, such
mention shall be deemed to include mention of the payment of Additional Amounts
provided for in this Section 1007 to the extent that, in such context,
Additional Amounts are, were or would be payable in respect thereof pursuant to
the provisions of this Section 1007 and express mention of the payment of
Additional Amounts (if applicable) in any provisions hereof shall not be
construed as excluding Additional Amounts in those provisions hereof where such
express mention is not made.

         If the Securities of a series provide for the payment of Additional
Amounts, at least 10 days prior to the first Interest Payment Date with respect
to that series of Securities (or if the Securities of that series will not bear
interest prior to Maturity, the first day on which a payment of principal and
any premium is made), and at least 10 days prior to each date of payment of
principal and any premium or interest if there has been any change with respect
to the matters set forth in the below-mentioned Officers' Certificate, the
Company shall furnish the Trustee and the Company's principal Paying Agent or
Paying Agents, if other than the Trustee, with an Officers' Certificate
instructing the Trustee and such Paying Agent or Paying Agents whether such
payment of principal of and any premium or interest on the Securities of that
series shall be made to Holders of Securities of that series who are United
States Aliens without withholding for or on account of any tax, assessment or
other governmental charge described in the Securities of that series. If any
such withholding shall be required, then such Officers' Certificate shall
specify by country the amount, if any, required to be withheld on such payments
to such Holders of Securities and the Company will pay to such Paying Agent the
Additional Amounts required by this Section 1007. The Company covenants to
indemnify the Trustee and any Paying Agent for, and to hold them harmless
against any loss, liability or expense reasonably incurred without negligence or
bad faith on their part arising out of or in connection with actions taken or
omitted by any of them in reliance on any Officers' Certificate furnished
pursuant to this Section 1007.

                                 ARTICLE ELEVEN

                            REDEMPTION OF SECURITIES

         SECTION 1101. Applicability of Article.

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<PAGE>

         Securities of any series which are redeemable before their Stated
Maturity shall be redeemable in accordance with their terms and (except as
otherwise specified as contemplated by Section 301 for Securities of any series)
in accordance with this Article Eleven.

         SECTION 1102. Election to Redeem; Notice to Trustee.

         Unless otherwise provided with respect to the Securities of a series as
contemplated by Section 301, the election of the Company to redeem any
Securities shall be evidenced by a Board Resolution. In case of any redemption
at the election of the Company of less than all the Securities of any series,
the Company shall, a reasonable period prior to the Redemption Date fixed by the
Company (unless a shorter notice shall be satisfactory to the Trustee), notify
the Trustee of such Redemption Date and of the principal amount of Securities of
such series to be redeemed. In the case of any redemption of Securities prior to
the expiration of any restriction on such redemption provided in the terms of
such Securities or elsewhere in this Indenture, the Company shall furnish the
Trustee with an Officers' Certificate evidencing compliance with such
restriction.

         SECTION 1103. Selection by Trustee of Securities to be Redeemed.

         If less than all the Securities of any series are to be redeemed, the
particular Securities to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee, from the Outstanding Securities of
such series not previously called for redemption, by such method as the Trustee
shall deem fair and appropriate and that may provide for the selection for
redemption of portions (equal to the minimum authorized denomination for
Securities of that series or any integral multiple thereof) of the principal
amount of Securities of such series of a denomination larger than the minimum
authorized denomination for Securities of that series or of the principal amount
of global Securities of such series.

         The Trustee shall promptly notify the Company and the Security
Registrar in writing of the Securities selected for redemption and, in the case
of any Securities selected for partial redemption, the principal amount thereof
to be redeemed.

         For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to the redemption of Securities shall relate,
in the case of any Securities redeemed or to be redeemed only in part, to the
portion of the principal amount of such Securities which has been or is to be
redeemed.

         SECTION 1104. Notice of Redemption.

         Notice of redemption shall be given in the manner provided in Section
107 to each Holder of Securities to be redeemed not less than 30 nor more than
60 days prior to the Redemption Date.

         All notices of redemption shall state:

                  (1)      the Redemption Date,

                  (2)      the Redemption Price,

                  (3)      if less than all the Outstanding Securities of any
         series are to be redeemed, the identification (and, in the case of
         partial redemption, the principal amounts) of the particular Securities
         to be redeemed,

                  (4)      that on the Redemption Date the Redemption Price will
         become due and payable upon each such Security to be redeemed and, if
         applicable, that interest thereon will cease to accrue on and after
         said date,

                  (5)      the place or places where such Securities are to be
         surrendered for payment of the Redemption Price,

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<PAGE>

                  (6)      that the redemption is for a sinking fund, if such is
         the case, and

                  (7)      the "CUSIP" number, if applicable.

         A notice of redemption as contemplated by Section 107 need not identify
particular Securities to be redeemed. Notice of redemption of Securities to be
redeemed at the election of the Company shall be given by the Company or, at the
Company's request, by the Trustee in the name and at the expense of the Company.

         SECTION 1105. Deposit of Redemption Price.

         On or before 10:00 a.m., New York City time, on any Redemption Date,
the Company shall deposit with the Trustee or with a Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 1003) an amount of money sufficient to pay the Redemption
Price of, and (except if the Redemption Date shall be an Interest Payment Date)
accrued interest on, and any Additional Amounts with respect to, all the
Securities which are to be redeemed on that date.

         SECTION 1106. Securities Payable on Redemption Date.

         Notice of redemption having been given as aforesaid, the Securities so
to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Securities shall cease to bear interest. Upon surrender of any
such Security for redemption in accordance with said notice, such Security shall
be paid by the Company at the Redemption Price, together with accrued interest
(and any Additional Amounts) to the Redemption Date; provided, however, that
installments of interest whose Stated Maturity is on or prior to the Redemption
Date shall be payable to the Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business on the
relevant Record Dates according to their terms and the provisions of Section
307.

         If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal of and premium (if any) shall,
until paid, bear interest from the Redemption Date at the rate prescribed
therefor in the Security or, in the case of Original Issue Discount Securities,
the Securities' Yield to Maturity.

         SECTION 1107. Securities Redeemed in Part.

         Any Security which is to be redeemed only in part shall be surrendered
at a Place of Payment therefor (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to
the Company and the Trustee duly executed by, the Holder thereof or his attorney
duly authorized in writing), and the Company shall execute, and the Trustee
shall authenticate and deliver to the Holder of such Security without service
charge, a new Security or Securities of the same series and Stated Maturity, of
any authorized denomination as requested by such Holder, in aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of
the Security so surrendered.

         Unless otherwise specified as contemplated by Section 301, the Company
and any Affiliate of the Company may at any time purchase or otherwise acquire
Securities in the open market or by private agreement. Such acquisition shall
not operate as or be deemed for any purpose to be a redemption of the
indebtedness represented by such Securities. Any Securities purchased or
acquired by the Company may be delivered to the Trustee and, upon such delivery,
the indebtedness represented thereby shall be deemed to be satisfied. Section
309 shall apply to all Securities so delivered.

                                       44

<PAGE>

                                 ARTICLE TWELVE

                                  SINKING FUNDS

         SECTION 1201. Applicability of Article.

         The provisions of this Article Twelve shall be applicable to any
sinking fund for the retirement of Securities of a series except as otherwise
specified as contemplated by Section 301 for Securities of such series.

         The minimum amount of any sinking fund payment provided for by the
terms of Securities of any series is herein referred to as a "mandatory sinking
fund payment," and any payment in excess of such minimum amount provided for by
the terms of Securities of any series is herein referred to as an "optional
sinking fund payment". Unless otherwise provided by the terms of Securities of
any series, the cash amount of any sinking fund payment may be subject to
reduction as provided in Section 1202. Each sinking fund payment shall be
applied to the redemption of Securities of any series as provided for by the
terms of Securities of such series.

         SECTION 1202. Satisfaction of Sinking Fund Payments with Securities.

         The Company (1) may deliver Outstanding Securities of a series (other
than any previously called for redemption) and (2) may apply as a credit
Securities of a series which have been redeemed either at the election of the
Company pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of such series required to be made
pursuant to the terms of such Securities as provided for by the terms of such
series; provided that such Securities have not been previously so credited. Such
Securities shall be received and credited for such purpose by the Trustee at the
Redemption Price specified in such Securities for redemption through operation
of the sinking fund and the amount of such sinking payment shall be reduced
accordingly.

         SECTION 1203. Redemption of Securities for Sinking Fund.

         Not less than 45 days prior (unless a shorter period shall be
satisfactory to the Trustee) to each sinking fund payment date for any series of
Securities, the Company will deliver to the Trustee an Officers' Certificate
specifying the amount of the next ensuing sinking fund payment for that series
pursuant to the terms of that series, the portion thereof, if any, which is to
be satisfied by payment of cash and the portion thereof, if any, which is to be
satisfied by delivery of or by crediting Securities of that series pursuant to
Section 1202 and will also deliver to the Trustee any Securities to be so
delivered. Not less than 30 days before each such sinking fund payment date the
Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 1103 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company
in the manner provided in Section 1104. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 1106 and 1107.

                                ARTICLE THIRTEEN

                                  SUBORDINATION

         SECTION 1301. Securities Subordinated to Senior Indebtedness.

         The Company and each Holder of a Security, by his acceptance thereof,
agree that (a) the payment of the principal of, premium (if any) and interest on
and any Additional Amounts with respect to each and all the Securities and (b)
any other payment in respect of the Securities, including on account of the
acquisition or redemption of Securities by the Company, is subordinated, to the
extent and in the manner provided in this Article Thirteen, to the prior payment
in full of all Senior Indebtedness of the Company, whether outstanding at the
date of this Indenture or thereafter created, incurred, assumed or guaranteed,
and that these subordination provisions are for the benefit of the holders of
Senior Indebtedness.

         This Article Thirteen shall constitute a continuing offer to all
Persons who, in reliance upon such provisions, become holders of, or continue to
hold, Senior Indebtedness, and such provisions are made for the benefit of the
holders of Senior Indebtedness, and such holders are made obligees hereunder and
anyone or more of them may enforce such provisions.

         SECTION 1302. No Payment on Securities in Certain Circumstances.

                                       45

<PAGE>

         (a)      No payment shall be made by the Company on account of the
principal of, premium (if any) or interest on or any Additional Amounts with
respect to the Securities of any series or to acquire any of such Securities
(including any repurchases of such Securities pursuant to the provisions hereof
or thereof at the option of the Holder of such Securities) for cash or property
(other than Junior Securities of the Company), or on account of any redemption
provisions of such Securities, in the event of default in payment of any
principal of, premium (if any) or interest on any Senior Indebtedness of the
Company when the same becomes due and payable, whether at maturity or at a date
fixed for prepayment or by declaration or otherwise (a "Payment Default"),
unless and until such Payment Default has been cured or waived or otherwise has
ceased to exist.

         (b)      No payment (by set-off or otherwise) may be made by or on
behalf of the Company on account of the principal of, premium (if any) or
interest on or any Additional Amounts with respect to the Securities of any
series or to acquire any of such Securities (including any repurchases of such
Securities pursuant to the provisions hereof or thereof at the option of the
Holder of such Securities) for cash or property (other than Junior Securities of
the Company), or on account of the redemption provisions of such Securities, in
the event of any event of default (other than a Payment Default) with respect to
any Designated Senior Indebtedness permitting the holders of such Designated
Senior Indebtedness (or a trustee or other representative on behalf of the
holders thereof) to declare such Designated Senior Indebtedness due and payable
prior to the date on which it would otherwise have become due and payable, upon
written notice thereof to the Company and the Trustee by any holders of
Designated Senior Indebtedness (or a trustee or other representative on behalf
of the holders thereof) (the "Payment Notice"), unless and until such event of
default shall have been cured or waived or otherwise has ceased to exist;
provided, that such payments may not be prevented pursuant to this Section
1302(b) for more than 179 days after an applicable Payment Notice has been
received by the Trustee unless the Designated Senior Indebtedness in respect of
which such event of default exists has been declared due and payable in its
entirety, in which case no such payment may be made until such acceleration has
been rescinded or annulled or such Designated Senior Indebtedness has been paid
in full. No event of default that existed or was continuing on the date of any
Payment Notice (whether or not such event of default is on the same issue of
Designated Senior Indebtedness) may be made the basis for the giving of a second
Payment Notice, and only one such Payment Notice may be given in any 365-day
period.

         (c)      In furtherance of the provisions of Section 1301, in the event
that, notwithstanding the foregoing provisions of this Section 1302, any payment
or distribution of assets of the Company (other than Junior Securities of the
Company) shall be received by the Trustee or the Holders of Securities of any
series at a time when such payment or distribution was prohibited by the
provisions of this Section 1302, then, unless such payment or distribution is no
longer prohibited by this Section 1302, such payment or distribution (subject to
the provisions of Section 1307) shall be received and held in trust by the
Trustee or such Holder or Paying Agent for the benefit of the holders of Senior
Indebtedness of the Company, and shall be paid or delivered by the Trustee or
such Holders or such Paying Agent, as the case may be, to the holders of Senior
Indebtedness of the Company remaining unpaid or unprovided for or their
representative or representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing such Senior Indebtedness
of the Company may have been issued, ratably, according to the aggregate amounts
remaining unpaid on account of such Senior Indebtedness of the Company held or
represented by each, for application to the payment of all Senior Indebtedness
in full after giving effect to all concurrent payments and distributions to or
for the holders of such Senior Indebtedness.

         SECTION 1303. Securities Subordinated to Prior Payment of All Senior

         Indebtedness on Dissolution, Liquidation or Reorganization.

         Upon any distribution of assets of the Company or upon any dissolution,
winding up, total or partial liquidation or reorganization of the Company,
whether voluntary or involuntary, in bankruptcy, insolvency, receivership or
similar proceeding or upon assignment for the benefit of creditors,

         (a)      the holders of all Senior Indebtedness of the Company shall
first be entitled to receive payments in full before the Holders of Securities
of any series are entitled to receive any payment on account of the principal
of, premium (if any) or interest on or any Additional Amounts with respect to
such Securities (other than Junior Securities of the Company);

                                       46

<PAGE>

         (b)      any payment or distribution of assets of the Company of any
kind or character, whether in cash, property or securities (other than Junior
Securities of the Company), to which the Holders of Securities of any series or
the Trustee on behalf of such Holders would be entitled, except for the
provisions of this Article Thirteen, shall be paid by the liquidating trustee or
agent or other Person making such a payment or distribution directly to the
holders of such Senior Indebtedness or their representative, ratably according
to the respective amounts of Senior Indebtedness held or represented by each, to
the extent necessary to make payment in full of all such Senior Indebtedness
remaining unpaid after giving effect to all concurrent payments and
distributions to the holders of such Senior Indebtedness; and

         (c)      in the event that, notwithstanding the foregoing, any payment
or distribution of assets of the Company of any kind or character, whether in
cash, property or securities (other than Junior Securities of the Company),
shall be received by the Trustee or the Holders of Securities of any series or
any Paying Agent (or, if the Company or any Affiliate of the Company is acting
as its own Paying Agent, money for any such payment or distribution shall be
segregated or held in trust) on account of the principal of, premium (if any) or
interest on or any Additional Amounts with respect to the Securities of such
series before all Senior Indebtedness of the Company is paid in full, such
payment or distribution (subject to the provisions of Section 1307) shall be
received and held in trust by the Trustee or such Holder or Paying Agent for the
benefit of the holders of such Senior Indebtedness, or their respective
representatives, ratably according to the respective amounts of such Senior
Indebtedness held or represented by each, to the extent necessary to make
payment as provided herein of all such Senior Indebtedness remaining unpaid
after giving effect to all concurrent payments and distributions and all
provisions therefor to or for the holders of such Senior Indebtedness, but only
to the extent that as to any holder of such Senior Indebtedness, as promptly as
practical following notice from the Trustee to the holders of such Senior
Indebtedness that such prohibited payment has been received by the Trustee,
Holder(s) or Paying Agent (or has been segregated as provided above), such
holder (or a representative therefor) notifies the Trustee of the amounts then
due and owing on such Senior Indebtedness, if any, held by such holder and only
the amounts specified in such notices to the Trustee shall be paid to the
holders of such Senior Indebtedness.

         SECTION 1304. Subrogation to Rights of Holders of Senior Indebtedness.

         Subject to the payment in full of all Senior Indebtedness of the
Company as provided herein, the Holders of the Securities shall be subrogated
(to the extent of the payments or distributions made to the holders of such
Senior Indebtedness pursuant to the provisions of this Article Thirteen) to the
rights of the holders of such Senior Indebtedness to receive payments or
distributions of assets of the Company applicable to the Senior Indebtedness
until all amounts owing on the Securities shall be paid in full. For the purpose
of such subrogation, no such payments or distributions to the holders of such
Senior Indebtedness by the Company, or by or on behalf of the Holders of the
Securities by virtue of this Article Thirteen, which otherwise would have been
made to such Holders shall, as between the Company and such Holders, be deemed
to be payment by the Company or on account of such Senior Indebtedness, it being
understood that the provisions of this Article Thirteen are and are intended
solely for the purpose of defining the relative rights of the Holders of the
Securities, on the one hand, and the holders of such Senior Indebtedness, on the
other hand.

         If any payment or distribution to which the Holders of the Securities
would otherwise have been entitled but for the provisions of this Article
Thirteen shall have been applied, pursuant to the provisions of this Article
Thirteen, to the payment of amounts payable under Senior Indebtedness of the
Company, then such Holders shall be entitled to receive from the holders of such
Senior Indebtedness any payments or distributions received by such holders of
Senior Indebtedness in excess of the amount sufficient to pay all amounts
payable under or in respect of such Senior Indebtedness in full.

         SECTION 1305. Obligations of the Company Unconditional.

         Nothing contained in this Article Thirteen or elsewhere in this
Indenture or in the Securities is intended to or shall impair, as between the
Company and the Holders of the Securities of any series, the obligation of the
Company, which is absolute and unconditional, to pay to such Holders the
principal of, premium (if any) and interest on or any Additional Amounts with
respect to the Securities of such series as and when the same shall become due
and payable in accordance with their terms, or is intended to or shall affect
the relative rights of such Holders and creditors of the Company other than the
holders of the Senior Indebtedness, nor shall anything herein or

                                       47

<PAGE>

therein prevent the Trustee or any Holder from exercising all remedies otherwise
permitted by applicable law upon default under this Indenture, subject to the
rights, if any, under this Article Thirteen, of the holders of Senior
Indebtedness in respect of cash, property or securities of the Company received
upon the exercise of any such remedy. Notwithstanding anything to the contrary
in this Article Thirteen or elsewhere in this Indenture or in the Securities,
upon any distribution of assets of the Company referred to in this Article
Thirteen, the Trustee, subject to the provisions of Sections 601 and 603, and
the Holders of the Securities shall be entitled to rely upon any order or decree
made by any court of competent jurisdiction in which such dissolution, winding
up, liquidation or reorganization proceedings are pending, or a certificate of
the liquidating trustee or agent or other Person making any distribution to the
Trustee or to such Holders for the purpose of ascertaining the Persons entitled
to participate in such distribution, the holders of the Senior Indebtedness and
other Indebtedness of the Company, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article Thirteen so long as such court has been apprised of
the provisions of, or the order, decree or certificate makes reference to, the
provisions of this Article Thirteen.

         SECTION 1306. Trustee Entitled to Assume Payments Not Prohibited in
                       Absence of Notice.

         The Trustee shall not at any time be charged with knowledge of the
existence of any facts that would prohibit the making of any payment to or by
the Trustee unless and until a Responsible Officer of the Trustee or any Paying
Agent shall have received, no later than two Business Days prior to such
payment, written notice thereof from the Company or from one or more holders of
Senior Indebtedness or from any representative therefor and, prior to the
receipt of any such written notice, the Trustee, subject to the provisions of
Sections 601 and 603, shall be entitled in all respects conclusively to assume
that no such fact exists.

         SECTION 1307. Application by Trustee of Amounts Deposited with It.

         Amounts deposited in trust with the Trustee pursuant to and in
accordance with Article Four shall be for the sole benefit of Holders of the
Securities of series for the benefit of which such amounts were deposited, and,
to the extent allocated for the payment of Securities of such series, shall not
be subject to the subordination provisions of this Article Thirteen. Otherwise,
any deposit of assets with the Trustee or the Paying Agent (whether or not in
trust) for the payment of principal of, premium (if any) or interest on or any
Additional Amounts with respect to any Securities shall be subject to the
provisions of Sections 1301, 1302, 1303 and 1304; provided that if prior to two
Business Days preceding the date on which by the terms of this Indenture any
such assets may become distributable for any purpose (including without
limitation, the payment of either principal of. premium (if any) or interest on
or any Additional Amounts with respect to any Security), the Trustee or such
Paying Agent shall not have received with respect to such assets the written
notice provided for in Section 1306, then the Trustee or such Paying Agent shall
have full power and authority to receive such assets and to apply the same to
the purpose for which they were received, and shall not be affected by any
notice to the contrary that may be received by it on or after such date; and
provided further that nothing contained in this Article Thirteen shall prevent
the Company from making, or the Trustee from receiving or applying, any payment
in connection with the redemption of Securities if the first publication of
notice of such redemption (whether by mail or otherwise in accordance with this
Indenture) has been made, and the Trustee has received such payment from the
Company, prior to the occurrence of any of the contingencies specified in
Section 1302 or 1303.

         SECTION 1308. Subordination Rights Not Impaired by Acts or Omissions of
                       the Company or Holders of Senior Indebtedness.

         No right of any present or future holders of any Senior Indebtedness to
enforce subordination provisions contained in this Article Thirteen shall at any
time in any way be prejudiced or impaired by any act or failure to act on the
part of the Company or by any act or failure to act, in good faith, by any such
holder, or by any noncompliance by the Company with the terms of this Indenture,
regardless of any knowledge thereof that any such holder may have or be
otherwise charged with. The holders of Senior Indebtedness may extend, renew,
modify or amend the terms of the Senior Indebtedness or any security therefor
and release, sell or exchange such security and otherwise deal freely with the
Company, all without affecting the liabilities and obligations of the parties to
this Indenture or the Holders of the Securities.

         SECTION 1309. Trustee to Effectuate Subordination of Securities.

                                       48

<PAGE>

         Each Holder of a Security by his acceptance thereof authorizes and
expressly directs the Trustee on his behalf to take such action as may be
necessary or appropriate to effectuate the subordination provisions contained in
this Article Thirteen and to protect the rights of the Holders of the Securities
pursuant to this Indenture, and appoints the Trustee his attorney-in-fact for
such purpose, including, in the event of any dissolution, winding up,
liquidation or reorganization of the Company (whether in bankruptcy, insolvency
or receivership proceedings or upon an assignment for the benefit of creditors
of the Company), the filing of a claim for the unpaid balance of his Securities
in the form required in said proceedings and cause said claim to be approved. If
the Trustee does not file a proper claim or proof of debt in the form required
in such proceeding prior to 30 days before the expiration of the time to file
such claim or claims, then the holders of the Senior Indebtedness or their
representative is hereby authorized to have the right to file and is hereby
authorized to file an appropriate claim for and on behalf of the Holders of said
Securities. Nothing herein contained shall be deemed to authorize the Trustee or
the holders of Senior Indebtedness or their representative to authorize or
consent to or accept or adopt on behalf of any Holder of Securities any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof, or to authorize the Trustee or the holders
of Senior Indebtedness or their representative to vote in respect of the claim
of any Holder of the Securities in any such proceeding.

         SECTION 1310. Right of Trustee to Hold Senior Indebtedness.

         The Trustee in its individual capacity shall be entitled to all of the
rights set forth in this Article Thirteen in respect of any Senior Indebtedness
at any time held by it to the same extent as any other holder of Senior
Indebtedness, and nothing in this Indenture shall be construed to deprive the
Trustee of any of its rights as such holder.

         SECTION 1311. Article Thirteen Not to Prevent Events of Default.

         The failure to make a payment on account of principal of, premium (if
any) or interest on the Securities by reason of any provision of this Article
Thirteen shall not be construed as preventing the occurrence of a Default or an
Event of Default under Section 501 or in any way prevent the Holders of the
Securities from exercising any right hereunder other than the right to receive
payment on the Securities.

         SECTION 1312. No Fiduciary Duty of Trustee to Holders of Senior
                       Indebtedness.

         The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Indebtedness, and shall not be liable to any such holders
(other than for its willful misconduct or negligence) if it shall in good faith
mistakenly pay over or distribute to the Holders of the Securities or the
Company or any other Person, cash, property or securities to which any holders
of Senior Indebtedness shall be entitled by virtue of this Article Thirteen or
otherwise. Nothing in this Section 1312 shall affect the obligation of any other
such Person to hold such payment for the benefit of, and to pay such payment
over to, the holders of Senior Indebtedness or their representative.

         SECTION 1313. Article Applicable to Paying Agent.

         In case at any time any Payment Agent other than the Trustee shall have
been appointed by the Company and be then acting hereunder, the term "Trustee"
as used in this Article Thirteen shall in such case (unless the context shall
otherwise require) be construed as extending to and including such Payment Agent
within its meaning as fully for all intents and purposes as if such Paying Agent
were named in this Article Thirteen in addition to or in place of the Trustee;
provided, however, that this Section 1313 shall not apply to the Company or any
Affiliate of the Company if it or such Affiliate acts as Paying Agent.

                                       49

<PAGE>

                                ARTICLE FOURTEEN

                        MEETINGS OF HOLDERS OF SECURITIES

         SECTION 1401. Purposes for Which Meetings May Be Called.

         A meeting of Holders of Securities of any or all series may be called
at any time and from time to time pursuant to this Article Fourteen to make,
give or take any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be made, given or taken by
Holders of Securities of such series.

         SECTION 1402. Call, Notice and Place of Meetings.

         (a)      The Trustee may at any time call a meeting of Holders of
Securities of any series for any purpose specified in Section 1401, to be held
at such time and at such place in Houston, Texas, in The Borough of Manhattan,
The City of New York, or in any other location as the Trustee shall determine.
Notice of every meeting of Holders of Securities of any series, setting forth
the time and the place of such meeting and in general terms the action proposed
to be taken at such meeting, shall be given, in the manner provided in Section
107, not less than 20 nor more than 180 days prior to the date fixed for the
meeting.

         (b)      In case at any time the Company, pursuant to a Board
Resolution, or the Holders of at least 10% in aggregate principal amount of the
Outstanding Securities of any series, shall have requested the Trustee for any
such series to call a meeting of the Holders of Securities of such series for
any purpose specified in Section 1401, by written request setting forth in
reasonable detail the action proposed to be taken at the meeting, and the
Trustee shall not have made the first publication of the notice of such meeting
within 30 days after receipt of such request or shall not thereafter proceed to
cause the meeting to be held as provided herein, then the Company or the Holders
of Securities of such series in the amount above specified, as the case may be,
may determine the time and the place in Houston, Texas, in The Borough of
Manhattan, The City of New York, or in London, for such meeting and may call
such meeting for such purposes by giving notice thereof as provided in
subsection (a) of this Section 1402.

         SECTION 1403. Persons Entitled to Vote at Meetings.

         To be entitled to vote at any meeting of Holders of Securities of any
series, a Person shall be (1) a Holder of one or more Outstanding Securities of
such series, or (2) a Person appointed by an instrument in writing as proxy for
a Holder or Holders of one or more Outstanding Securities of such series by such
Holder or Holders. The only Persons who shall be entitled to be present or to
speak at any meeting of Holders of Securities of any series shall be the Persons
entitled to vote at such meeting and their counsel, any representatives of the
Trustee and its counsel and any representatives of the Company and its counsel.

         SECTION 1404. Quorum; Action.

         The Persons entitled to vote a majority in aggregate principal amount
of the Outstanding Securities of a series shall constitute a quorum for a
meeting of Holders of Securities of such series. In the absence of a quorum
within 30 minutes of the time appointed for any such meeting, the meeting shall,
if convened at the request of Holders of Securities of such series, be
dissolved. In any other case, the meeting may be adjourned for a period of not
less than 10 days as determined by the chairman of the meeting prior to the
adjournment of such meeting. In the absence of a quorum at any such adjourned
meeting, such adjourned meeting may be further adjourned for a period of not
less than 10 days as determined by the chairman of the meeting prior to the
adjournment of such adjourned meeting. Subject to Section 1405(d), notice of the
reconvening of any adjourned meeting shall be given as provided in Section
1402(a), except that such notice need be given only once not less than five days
prior to the date on which the meeting is scheduled to be reconvened. Notice of
the reconvening of an adjourned meeting shall state expressly that Persons
entitled to vote a majority in principal amount of the Outstanding Securities of
such series shall constitute a quorum.

         Except as limited by the proviso to Section 902, any resolution
presented to a meeting or adjourned meeting duly reconvened at which a quorum is
present as aforesaid may be adopted by the affirmative vote of the Holders of a
majority in aggregate principal amount of the Outstanding Securities of that
series; provided, however, that, except as limited by the proviso to Section
902, any resolution with respect to any request, demand, authorization,
direction, notice, consent or waiver which this Indenture expressly provides may
be made, given or taken by the Holders of a specified percentage that is less
than a majority in aggregate principal amount of the Outstanding Securities of a
series may be adopted at a meeting or an adjourned meeting duly reconvened and
at which a quorum is present as aforesaid by the affirmative vote of the Holders
of such specified percentage in aggregate principal amount of the Outstanding
Securities of that series.

                                       50

<PAGE>

         Except as limited by the proviso to Section 902, any resolution passed
or decision taken at any meeting of Holders of Securities of any series duly
held in accordance with this Section 1404 shall be binding on all the Holders of
Securities of such series, whether or not present or represented at the meeting.

         SECTION 1405. Determination of Voting Rights; Conduct and Adjournment
                       of Meetings.

         (a) The holding of Securities shall be proved in the manner specified
in Section 105 and the appointment of any proxy shall be proved in the manner
specified in Section 105. Such regulations may provide that written instruments
appointing proxies, regular on their face, may be presumed valid and genuine
without the proof specified in Section 105 or other proof.

         (b) The Trustee shall, by an instrument in writing, appoint a temporary
chairman of the meeting, unless the meeting shall have been called by the
Company or by Holders of Securities as provided in Section 1402(b), in which
case the Company or the Holders of Securities of the series calling the meeting,
as the case may be, shall appoint a temporary chairman. A permanent chairman and
a permanent secretary of the meeting shall be elected by vote of the Persons
entitled to vote a majority in aggregate principal amount of the Outstanding
Securities of such series represented at the meeting.

         (c) At any meeting each Holder of a Security of such series and each
proxy shall be entitled to one vote for each $1,000 principal amount of the
Outstanding Securities of such series held or represented by him; provided,
however, that no vote shall be cast or counted at any meeting in respect of any
Security challenged as not Outstanding and ruled by the chairman of the meeting
to be not Outstanding. The chairman of the meeting shall have no right to vote,
except as a Holder of a Security of such series or as a proxy.

         (d) Any meeting of Holders of Securities of any series duly called
pursuant to Section 1402 at which a quorum is present may be adjourned from time
to time by Persons entitled to vote a majority in aggregate principal amount of
the Outstanding Securities of such series represented at the meeting; and the
meeting may be held as so adjourned without further notice.

         SECTION 1406. Counting Votes and Recording Action of Meetings.

         The vote upon any resolution submitted to any meeting of Holders of
Securities of any series shall be by written ballots on which shall be
subscribed the signatures of the Holders of Securities of such series or of
their representatives by proxy and the principal amounts and serial numbers of
the Outstanding Securities of such series held or represented by them. The
permanent chairman of the meeting shall appoint two inspectors of votes who
shall count all votes cast at the meeting for or against any resolution and who
shall make and file with the secretary of the meeting their verified written
reports in duplicate of all votes cast at the meeting. A record, at least in
duplicate, of the proceedings of each meeting of Holders of Securities of any
series shall be prepared by the secretary of the meeting and there shall be
attached to such record the original reports of the inspectors of votes on any
vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that such notice was given as provided in Section 1402 and, if
applicable, Section 1404. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company, and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting. Any record so signed and verified shall be conclusive evidence
of the matters therein stated.

                                     * * *

                                       51

<PAGE>

         This instrument may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.

         IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.

                                           NOBLE CORPORATION

                                           By: ___________________________
                                               Name:
                                               Title:

                                           JPMORGAN CHASE BANK

                                           By: ____________________________
                                               Name:
                                               Title:

                                       52exv10w1

 

EXHIBIT 10.1

AMENDED

REVOLVING CREDIT AGREEMENT

Dated
as of February 15, 2006

by and among

ALON USA, LP

as Borrower

THE GUARANTOR COMPANIES

FROM TIME TO TIME PARTY HERETO

THE FINANCIAL INSTITUTIONS

FROM TIME TO TIME PARTY HERETO

and

ISRAEL DISCOUNT BANK OF NEW YORK,

as Administrative Agent, Co-Arranger and Collateral Agent

and

BANK LEUMI USA,

as Co-Arranger

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	ARTICLE I DEFINITIONS; CERTAIN TERMS	 	 	1	 
	 

	 	Section 1.01
	 	Definitions
	 	 	1	 
	 

	 	Section 1.02
	 	Accounting and Other Terms
	 	 	27	 
	 

	 	Section 1.03
	 	Time References
	 	 	27	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II THE REVOLVING CREDIT LOANS	 	 	28	 
	 

	 	Section 2.01
	 	Revolving Credit Commitments
	 	 	28	 
	 

	 	Section 2.02
	 	Revolving Credit Loans
	 	 	28	 
	 

	 	Section 2.03
	 	Making the Revolving Credit Loans
	 	 	28	 
	 

	 	Section 2.04
	 	Revolving Credit Notes; Repayment of Revolving Credit Loans
	 	 	29	 
	 

	 	Section 2.05
	 	Funding and Settlement Procedures
	 	 	29	 
	 

	 	Section 2.06
	 	Interest
	 	 	31	 
	 

	 	Section 2.07
	 	Reduction of Revolving Credit Commitment; Prepayment of Revolving Credit Loans
	 	 	32	 
	 

	 	Section 2.08
	 	Fees
	 	 	33	 
	 

	 	Section 2.09
	 	Eurodollar Rate Not Determinable; Illegality or Impropriety
	 	 	34	 
	 

	 	Section 2.10
	 	Indemnity
	 	 	35	 
	 

	 	Section 2.11
	 	Continuation and Conversion of Revolving Credit Loans
	 	 	36	 
	 

	 	Section 2.12
	 	Taxes
	 	 	36	 
	 

	 	Section 2.13
	 	Increases to the Facility Sublimit
	 	 	39	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III LETTERS OF CREDIT	 	 	40	 
	 

	 	Section 3.01
	 	Letters of Credit
	 	 	40	 
	 

	 	Section 3.02
	 	Participations
	 	 	43	 
	 

	 	Section 3.03
	 	Issuance of Letters of Credit; Fees
	 	 	47	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV FEES, PAYMENTS AND OTHER COMPENSATION	 	 	48	 
	 

	 	Section 4.01
	 	Audit and Collateral Monitoring Fees
	 	 	48	 
	 

	 	Section 4.02
	 	Payments; Computations and Statements
	 	 	48	 
	 

	 	Section 4.03
	 	Sharing of Payments, Etc
	 	 	49	 
	 

	 	Section 4.04
	 	Apportionment of Payments
	 	 	50	 
	 

	 	Section 4.05
	 	Increased Costs and Reduced Return
	 	 	50	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE V CONDITIONS OF EFFECTIVENESS, LETTER OF CREDIT ISSUANCE AND LENDING	 	 	51	 
	 

	 	Section 5.01
	 	Conditions Precedent to Effectiveness
	 	 	52	 
	 

	 	Section 5.02
	 	Conditions Precedent to Revolving Credit Loans and Letters of Credit
	 	 	54	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI REPRESENTATIONS AND WARRANTIES	 	 	55	 
	 

	 	Section 6.01
	 	Representations and Warranties
	 	 	55	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII COVENANTS OF COMPANIES	 	 	62	 
	 

	 	Section 7.01
	 	Affirmative Covenants
	 	 	62	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 

	 	Section 7.02
	 	Negative Covenants
	 	 	70	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VIII MANAGEMENT, COLLECTION AND STATUS OF ACCOUNTS RECEIVABLE AND OTHER COLLATERAL	 	 	77	 
	 

	 	Section 8.01
	 	Management of Collateral
	 	 	77	 
	 

	 	Section 8.02
	 	Accounts Receivable Documentation
	 	 	78	 
	 

	 	Section 8.03
	 	Status of Accounts Receivable and Other Collateral
	 	 	79	 
	 

	 	Section 8.04
	 	Collateral Custodian
	 	 	80	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IX THE AGENT	 	 	80	 
	 

	 	Section 9.01
	 	Authorization and Action
	 	 	80	 
	 

	 	Section 9.02
	 	Borrower’s Default
	 	 	80	 
	 

	 	Section 9.03
	 	Reliance, Etc
	 	 	81	 
	 

	 	Section 9.04
	 	IDB and Bank Leumi
	 	 	81	 
	 

	 	Section 9.05
	 	Lender Credit Decision
	 	 	82	 
	 

	 	Section 9.06
	 	Indemnification
	 	 	82	 
	 

	 	Section 9.07
	 	Successor Agent
	 	 	83	 
	 

	 	Section 9.08
	 	Collateral Matters
	 	 	83	 
	 
	ARTICLE X EVENTS OF DEFAULT	 	 	85	 
	 

	 	Section 10.01
	 	Events of Default
	 	 	85	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XI GUARANTY	 	 	89	 
	 

	 	Section 11.01
	 	Guaranty
	 	 	89	 
	 

	 	Section 11.02
	 	Obligations Unconditional
	 	 	90	 
	 

	 	Section 11.03
	 	Waivers
	 	 	90	 
	 

	 	Section 11.04
	 	Subrogation
	 	 	91	 
	 

	 	Section 11.05
	 	No Waiver; Remedies
	 	 	91	 
	 

	 	Section 11.06
	 	Stay of Acceleration
	 	 	91	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XII MISCELLANEOUS	 	 	92	 
	 

	 	Section 12.01
	 	Termination; Annual Review
	 	 	92	 
	 

	 	Section 12.02
	 	Notices, Etc
	 	 	92	 
	 

	 	Section 12.03
	 	Amendments, Etc
	 	 	93	 
	 

	 	Section 12.04
	 	No Waiver; Remedies, Etc
	 	 	94	 
	 

	 	Section 12.05
	 	Expenses; Taxes; Attorneys’ Fees
	 	 	94	 
	 

	 	Section 12.06
	 	Right of Set Off
	 	 	95	 
	 

	 	Section 12.07
	 	Severability
	 	 	96	 
	 

	 	Section 12.08
	 	Assignments and Participations
	 	 	96	 
	 

	 	Section 12.09
	 	Counterparts
	 	 	98	 
	 

	 	Section 12.10
	 	Headings
	 	 	98	 
	 

	 	Section 12.11
	 	Governing Law
	 	 	98	 
	 

	 	Section 12.12
	 	Waiver of Jury Trial, Etc
	 	 	99	 
	 

	 	Section 12.13
	 	Consent by the Agent, Lenders
	 	 	99	 
	 

	 	Section 12.14
	 	No Party Deemed Drafter
	 	 	99	 
	 

	 	Section 12.15
	 	Reinstatement; Certain Payments
	 	 	99	 

-ii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 

	 	Section 12.16
	 	Indemnification
	 	 	100	 
	 

	 	Section 12.17
	 	Environmental Indemnification
	 	 	100	 
	 

	 	Section 12.18
	 	Binding Effect
	 	 	101	 
	 

	 	Section 12.19
	 	Interest
	 	 	101	 
	 

	 	Section 12.20
	 	Entire Agreement
	 	 	102	 
	 

	 	Section 12.21
	 	Patriot Act
	 	 	102	 

-iii-

 

TABLE OF CONTENTS

(continued)

	 	 	 
	SCHEDULE A

	 	Agent Account
	SCHEDULE B

	 	Lenders and Lenders’ Revolving Credit Commitments
	SCHEDULE C

	 	Fiscal Year, Fiscal Month and Fiscal Quarter
	SCHEDULE D

	 	Pipelines
	SCHEDULE E

	 	Terminals
	SCHEDULE F

	 	Stock Option Plan
	SCHEDULE 6.01(e)

	 	Inventory Locations; Books and Records Locations; Chief
Executive Offices
	SCHEDULE 6.01(f)

	 	Subsidiaries
	SCHEDULE 6.01(g)

	 	Litigation
	SCHEDULE 6.01(j)

	 	ERISA
	SCHEDULE 6.01(cc)

	 	Bank Accounts
	SCHEDULE 6.01(dd)

	 	Name; Jurisdiction of Organization; Organizational ID
Number; FEIN
	 
	 	 
	EXHIBIT A

	 	Form of Revolving Credit Notes
	EXHIBIT B

	 	Form of Security Agreement
	EXHIBIT C

	 	Form of Subordination Agreement
	EXHIBIT D

	 	Form of Assignment and Acceptance
	EXHIBIT E

	 	Form of Notice of Borrowing
	EXHIBIT F

	 	Form of Joinder Agreement
	EXHIBIT G

	 	Form of Borrowing Base Certificate
	EXHIBIT H

	 	Form of Letter of Credit Application
	EXHIBIT I

	 	Form of Notice of Facility Sublimit Increase
	EXHIBIT J

	 	Form of Extension Notice

-iv-

 

AMENDED REVOLVING CREDIT AGREEMENT

          AMENDED
REVOLVING CREDIT AGREEMENT (this “Agreement”), dated
as of February 15, 2006
by and among Alon USA, LP, f/k/a SWBU, L.P., a Texas limited partnership (the “Borrower”),
Alon USA Energy, Inc., a Delaware corporation (together with any successor thereto, the
“Parent”), all direct and indirect subsidiaries of the Parent other than subsidiaries of
Alon Interests (as defined below), the financial institutions from time to time party hereto (each
a “Lender” and collectively, the “Lenders”), Israel Discount Bank of New York, as
administrative agent, co-arranger and collateral agent for the Lenders (in such capacity, the
“Agent”), and Bank Leumi USA, as co-arranger for the Lenders.

RECITALS

          Pursuant to the original Amended Revolving Credit Agreement dated as of January 14, 2004 (as
amended prior to the date hereof, the “Existing Revolving Credit Agreement”), by and among
the Companies (as defined below), the Lenders and the Agent, the Lenders extended credit to the
Borrower consisting of a revolving credit facility in an aggregate principal amount not to exceed
$141,600,000 at any time outstanding. The Companies have asked the Lenders to amend the Existing
Revolving Credit Agreement in order to, among other things, (a) increase the size of the Total
Commitment (as defined below) to an aggregate principal amount not in excess of $240,000,000 at any
time outstanding, which may be utilized for revolving credit loans and for letters of credit, and
(b) amend certain other provisions of the Existing Revolving Credit Agreement. The proceeds of the
revolving loans and letters of credit under this Agreement shall be used by the Borrower (i) for
working capital purposes of the Borrower and its subsidiaries, (ii) to pay fees and expenses of the
Borrower incurred in connection with this Agreement, and (iii) for other purposes permitted herein.
Accordingly, the Companies, the Borrower, the Lenders and the Agent hereby agree that the Existing
Revolving Credit Agreement is amended as follows:

ARTICLE I

DEFINITIONS; CERTAIN TERMS

          Section 1.01 Definitions. As used in this Agreement, the following terms shall have
the respective meanings indicated below, such meanings to be applicable equally to both the
singular and plural forms of such terms:

          “Account” shall have the meaning assigned to it in Article 9 of the Uniform Commercial
Code in effect in the State of New York on the date hereof.

          “Account Debtor” means each debtor, customer or obligor in any way obligated on or in
connection with any Account Receivable.

          “Accounts Receivable” means any and all rights of a Person to payment for goods sold
or services rendered, including accounts, contract rights and general intangibles arising out of or
related to any Accounts and any and all such rights evidenced by chattel paper, instruments

 

 

or documents, whether due or to become due and whether or not earned by performance, and
whether now or hereafter acquired or arising in the future and any proceeds arising therefrom or
relating thereto.

          “Action” has the meaning specified therefor in Section 12.13 hereof.

          “Affiliate” means, as to any Person, any other Person that directly or indirectly
through one or more intermediaries, controls, is controlled by, or is under common control with,
such Person. For purposes of this definition, “control” of a Person means the power, directly or
indirectly, either to (i) vote 10% or more of the Capital Stock having ordinary voting power for
the election of directors (or other Persons performing a similar function) of such Person or (ii)
direct or cause the direction of the management and policies of such Person whether by contract or
otherwise. Anything to the contrary notwithstanding, in no event shall the Agent, the WC
Collateral Agent or any Lender be deemed to be an Affiliate of any Loan Party.

          “Agent” has the meaning specified therefor in the preamble hereto.

          “Agent Account” means the account of the Agent set forth in Schedule A hereto.

          “Agent Advances” has the meaning specified therefor in Section 9.08 hereof.

          “Agreement” has the meaning specified therefor in the first paragraph hereof.

          “Alon Assets” means Alon Assets, Inc., a Delaware corporation.

          “Alon Capital” means Alon USA Capital, Inc., a Delaware corporation and a Subsidiary
of the Parent.

          “Alon Interests” means Alon USA Interests, LLC, a Texas limited liability company.

          “Alon Israel” means Alon Israel Oil Company Ltd., a limited liability company under
the laws of the State of Israel and the parent company of the Parent.

          “Alon Logistics” means Alon Pipeline Logistics, LLC, a Delaware limited liability
company.

          “Alon Logistics Notes” means the subordinated intercompany promissory notes in an
aggregate principal amount of $112,000,000, issued by the Borrower or one or more Subsidiaries of
Alon USA to Alon Logistics in exchange for delivery by Alon Logistics to the Borrower or such
Subsidiaries of the Cash Consideration relating to the Pipeline Transactions.

          “Alon Operating” means Alon USA Operating, Inc., a Delaware corporation and a
Subsidiary of the Parent.

          “Alon Pipeline” means Alon USA Pipeline, Inc., a Delaware corporation.

2

 

          “Alon Pipeline Assets” means Alon Pipeline Assets, LLC, a Texas limited liability
company.

          “Alon Refining” means Alon USA Refining, Inc., a Delaware corporation, or any
successor thereto by merger.

          “Alon USA” means Alon USA, Inc., a Delaware corporation and a wholly-owned Subsidiary
of the Parent.

          “APPL” means Alon Petroleum Pipe Line Company, f/k/a American Petrofina Pipe Line
Company, a Delaware corporation.

          “Applicable Borrowing Base Percentage” means, as of any date:

          (a) if either (i) the WC Collateral Agent (for the benefit of the Lenders) has a legal, valid
and perfected first or second priority Lien on all or substantially all of the Fixed Assets and
Capital Stock owned by the Loan Parties, or (ii) the WC Collateral Agent does not have a Lien on
all or substantially all of the Fixed Assets and Capital Stock owed by the Loan Parties and so long
as such Fixed Assets or Capital Stock are not subject to any Lien of any other Person, then (A) 90%
(with respect to the Net Amount of Eligible Accounts Receivable), and (B) 85% (with respect to
Eligible Inventory), and

          (b) if the WC Collateral Agent does not have a Lien on all or substantially all of the Fixed
Assets and Capital Stock owned by the Loan Parties and such Fixed Assets or Capital Stock are
subject to a Lien of any other Person, then (A) 85% (with respect to the Net Amount of Eligible
Accounts Receivable), and (B) 80% (with respect to Eligible Inventory).

          “Applicable Percentage” means, with respect to a Permitted Investment, the percentage
that IDB ordinarily advances against such Permitted Investment in accordance with its customary
lending practices.

          “Assignment and Acceptance” means an assignment and acceptance entered into by an
assigning Lender and an assignee and accepted by the Agent, in accordance with Section 12.08 hereof
and substantially in the form of Exhibit D hereto.

          “Assignment of Claims Act” means the Assignment of Claims Act of 1940, as amended from
time to time, codified at 31 U.S.C. § 3727 and 41 U.S.C. § 15, or any successor statute, and the
rules and regulations promulgated thereunder.

          “Assumed Liabilities” has the meaning given to such term in Section 1.3 of the Holly
Contribution Agreement.

          “Availability” means, at any time, the difference between (i) the lowest of (A) the
Borrowing Base, (B) the Total Commitment, and (C) the then current Facility Sublimit, and (ii) the
sum of (A) the aggregate outstanding principal amount of all Revolving Credit Loans and (B) all
Letter of Credit Obligations.

          “Bank Leumi” means Bank Leumi USA.

3

 

          “Base Production Level” means, (a) as of the Effective Date, 67,000 barrels per day,
which is Alon USA’s and its Consolidated Subsidiaries’ average throughput capacity to process
barrels of crude oil and blendstocks per day, and (b) after the Effective Date, such amount plus
any increase in Alon USA’s and its Consolidated Subsidiaries’ average throughput capacity to
process barrels of crude oil and blendstocks per day for which the Borrower has obtained an
increase in the Facility Sublimit pursuant to Section 2.13(b).

          “Base Rate” means a rate per annum equal to the Prime Rate for such day.

          “Base Rate Loan” means a Revolving Credit Loan bearing interest at the Base Rate.

          “Blended West Texas Crude Oil Price” means, as of any date, the price equal to the sum
of (i) nine-tenths of the closing spot price per barrel of West Texas Sour Crude Oil plus (ii)
one-tenth of the closing spot price per barrel of West Texas Intermediate Crude Oil.

          “Board” means the Board of Governors of the Federal Reserve System of the United
States.

          “Borrower” has the meaning specified therefor in the preamble hereto.

          “Borrowing Base” means, as of any date, without duplication, the difference between
(i) the sum of (A) the Applicable Borrowing Base Percentage of the Net Amount of Eligible Accounts
Receivable of the Loan Parties (other than Alon Interests and the Parent), (B) the Applicable
Borrowing Base Percentage of the sum of the value of the Eligible Inventory of the Loan Parties
(other than Alon Interests and the Parent) plus the fair market value of the Eligible Exchanged
Inventory owed to the Loan Parties (other than Alon Interests and the Parent), provided
that the Agent may mark to market the Inventory at any time, in its sole discretion, and (C) the
Applicable Percentage of cash and Permitted Investments of the Loan Parties (other than Alon
Interests and the Parent), in each case to the extent that such cash or Permitted Investment is
held in a Depository Account over which the WC Collateral Agent (or its nominee) has sole dominion
and control and such Loan Party has executed and delivered to the WC Collateral Agent a Depository
Account Agreement with respect thereto and the WC Collateral Agent has a perfected, first priority
security interest therein and (ii) such reserves as the Agent may deem appropriate in the exercise
of its reasonable business judgment based upon the lending practices of the Agent, consistent with
the practices customary in the commercial finance industry generally, provided that, solely
for purposes of calculating Availability, the Borrowing Base and calculating Letter of Credit
Obligations in connection with standby Letters of Credit for purposes of Section 2.01(b)(ii)(B),
Section 2.01(b)(iii)(B), Section 2.07(c), Section 3.01(b)(solely with respect to clause (ii) of the
first sentence thereof) and Section 7.01(l) of this Agreement, clause (ii) of the definition of
Letter of Credit Obligations in connection with standby Letters of Credit issued for the purpose of
facilitating the purchase of crude oil by the Borrower shall be the actual amount of the liability
supported by such Letter of Credit even if such amount is less than the actual amount available for
drawing under such Letter of Credit, to the extent that the Agent is satisfied that the actual
amount of the liability supported by such Letter of Credit is so limited.

4

 

          “Borrowing Base Certificate” means the certification of the Borrowing Base in
compliance with Section 7.01(a)(ix) hereof, substantially in the form of Exhibit G hereto.

          “Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks in New York City are required or authorized to close, provided, that with
respect to the borrowing, payment, conversion to or continuation of, or determination of interest
rate on, Eurodollar Loans, Business Day shall mean any Business Day on which dealings in Dollar
deposits may be carried on in the Interbank Market. .

          “Business Plan” means the Alon USA Business Plan dated as of December 31, 2005.

          “Capital Guideline” means any law, rule, regulation, policy, guideline or directive
(whether or not having the force of law and whether or not the failure to comply therewith would be
unlawful) (i) regarding capital adequacy, capital ratios, capital requirements, the calculation of
the capital of a bank or its holding company or similar matters, or (ii) affecting the amount of
capital required to be obtained or maintained by the Lenders, Affiliates of the Lenders or the L/C
Issuer or the manner in which the Lenders, Affiliates of the Lenders or the L/C Issuer allocate
capital to any of their contingent liabilities (including letters of credit), advances,
acceptances, commitments, assets or liabilities.

          “Capital Stock” means any and all shares, interests, participations, warrants, options
or other equivalents (however designated) of capital stock of a corporation or any and all
equivalent ownership interests in a Person (other than a corporation).

          “Capitalized Lease” means any lease or agreement to lease which is required under GAAP
to be capitalized on the balance sheet of the lessee.

          “Capitalized Lease Obligations” means obligations for the payment of rent for any real
or personal property under leases or agreements to lease that, in accordance with GAAP, have been
or should be capitalized on the books of the lessee and, for purposes hereof, the amount of any
such obligation shall be the capitalized amount thereof determined in accordance with GAAP.

          “Cash Concentration Account” means a deposit account maintained by the Borrower at the
Cash Concentration Account Bank, which deposit account shall be under the sole dominion and control
of the Agent.

          “Cash Concentration Account Agreement” means an agreement with respect to the Cash
Concentration Account, in form and substance satisfactory to the Agent, among the Cash
Concentration Account Bank, the Borrower, and the Agent, delivered to the Agent pursuant to Section
7.01(m) hereof, as the same may be amended or otherwise modified from time to time.

          “Cash Concentration Account Bank” means Bank Leumi.

          “Cash Consideration” means an amount in cash equal to $120,000,000, paid to Alon
Logistics pursuant to the Holly Contribution Agreement.

5

 

          “Change of Control” means, an event or series of events by which:

     (i) Alon Israel shall cease to own and control legally and beneficially, either
directly or indirectly, equity securities in the Parent representing 25% or more of the
combined voting power of all of equity securities entitled to vote for members of the board
of directors or equivalent governing body of the Parent on a fully-diluted basis (and taking
into account all such securities that each such person or group has the right to acquire
pursuant to any option right);

     (ii) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or
its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other
fiduciary or administrator of any such plan) other than Alon Israel becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934,
except that a person or group shall be deemed to have “beneficial ownership” of all
securities that such person or group has the right to acquire (such right, an “option
right”), whether such right is exercisable immediately or only after the passage of time),
directly or indirectly, of more of the equity securities of the Parent entitled to vote for
members of the board of directors of the Parent on a fully-diluted basis (and taking into
account all such securities that such person or group has the right to acquire pursuant to
any option right) than Alon Israel;

     (iii) Alon Israel, shall cease to have the power to exercise, directly or indirectly, a
controlling influence over the management or policies of the Parent, Alon USA or the
Borrower;

     (iv) any Person or two or more Persons acting in concert, other than Alon Israel or in
the case of the Refinery, Alon USA, shall have acquired by contract or otherwise, or shall
have entered into a contract or arrangement that, upon consummation thereof, will result in
its or their acquisition of the power to exercise, directly or indirectly, a controlling
influence over the management or policies of the Parent or the day to day operations and
management of the Refinery;

     (v) the Parent shall cease to own and control legally and beneficially, either directly
or indirectly, equity securities in Alon USA representing 90% or more of the combined voting
power of all of equity securities entitled to vote for members of the board of directors of
Alon USA on a fully-diluted basis (and taking into account all such securities that such
person or group has the right to acquire pursuant to any option right);

     (vi) Alon USA shall cease to own (free and clear of all Liens other than Permitted
Liens), and control legally and beneficially, either directly or indirectly, equity
securities in (A) the Borrower representing 90% and (B) Alon Refining representing 81%, in
each case, of the combined voting power of all of the equity securities entitled to vote for
members of the board of directors or equivalent governing body of such Person on a
fully-diluted basis (and taking into account all such securities that such person or group
has the right to acquire pursuant to any option right);

6

 

     (vii) Alon USA shall cease to directly or indirectly own the Refinery (free and clear
of all Liens other than Permitted Liens); or

     (viii) during any period of 24 consecutive months, a majority of the members of the
board of directors or other equivalent governing body of the Parent cease to be composed of
Persons (A) who were members of that board or equivalent governing body on the first day of
such period, (B) whose election or nomination to that board or equivalent governing body was
approved by individuals referred to in clause (A) above constituting at the time of
such election or nomination at least a majority of that board or equivalent governing body
or (C) whose election or nomination to that board or other equivalent governing body was
approved by Persons referred to in clauses (A) and (B) above constituting at
the time of such election or nomination at least a majority of that board or equivalent
governing body (excluding, in the case of both clause (B) and clause (C),
any individual whose initial nomination for, or assumption of office as, a member of that
board or equivalent governing body occurs as a result of an actual or threatened
solicitation of proxies or consents for the election or removal of one or more directors by
any person or group other than a solicitation for the election of one or more directors by
or on behalf of the board of directors);

provided that (I) non-voting Capital Stock owned by any manager or employee of Alon Assets
and Alon Operating issued under any employee stock option or stock purchase plan or employee
benefit plan in existence as of the date hereof or hereafter adopted, or otherwise in connection
with the employment or retention of any manager or employee, in each case shall not be included in
the determination of whether a Change of Control has occurred so long as such Capital Stock does
not constitute, in the aggregate, more than 20% of the Capital Stock of any such Subsidiary, and
(II) Capital Stock acquired by any employee of a Company (other than with respect to the Capital
Stock of Alon Assets or Alon Operating to the extent specified in clause (I)) through the exercise
by such employee of any stock options granted under the stock option plan described in Schedule F
hereto, shall not be included in the determination of whether a Change of Control has occurred so
long as such Capital Stock does not constitute, in the aggregate, more than 16% of the Capital
Stock of any Company.

          “Collateral” means all of the property (tangible and intangible) purported to be
subject to the Lien purported to be created by any security agreement, pledge agreement, assignment
or other security document heretofore or hereafter executed by any Person as security for all or
any part of the Obligations.

          “Company” means all direct and indirect subsidiaries of the Parent (including, without
limitation, Alon Interests), other than subsidiaries of Alon Interests.

          “Consolidated Current Assets” means, at a particular date, all cash, Permitted
Investments, accounts and inventory of a Person and its Consolidated Subsidiaries (other than
accounts for which the account debtor is an Affiliate of such Person, or any Consolidated
Subsidiary of such Person, to the extent such account did not arise through an arms length
transaction in the ordinary course of business) and all other items which would, in conformity with
GAAP, be included under current assets on a balance sheet of such Person and its Consolidated
Subsidiaries on a consolidated basis as at such date.

7

 

          “Consolidated Current Liabilities” means, at a particular date, all amounts which
would, in conformity with GAAP, be included under current liabilities on a balance sheet of a
Person and its Consolidated Subsidiaries on a consolidated basis, as at such date, but in any event
including, without limitation, the amounts of (i) all Indebtedness for borrowed money of such
Person or any of its Consolidated Subsidiaries payable on demand, or, at the option of the Person
to whom such Indebtedness is owed, not more than twelve (12) months after such date, (ii) any
payments in respect of any Indebtedness of such Person or any of its Consolidated Subsidiaries
(whether installment, serial maturity, sinking fund payment or otherwise) required to be made not
more than twelve (12) months after such date, (iii) all liabilities or Indebtedness payable on
demand or, at the option of the Person to whom such Indebtedness is owed, not more than twelve (12)
months after such date, and (iv) all accruals for federal or other taxes measured by income payable
within a twelve (12) month period.

          “Consolidated EBITDA” means, for any Person and its Consolidated Subsidiaries, for any
period, the net income (or net loss) of such Person and its Consolidated Subsidiaries for such
period, plus (i) the sum, without duplication, of (A) gross interest expense for such
period, (B) income tax expense, (C) positive depreciation expense, (D) positive amortization
expense, (E) extraordinary or unusual non-cash losses (to the extent that such extraordinary or
unusual losses have not resulted in a cash outlay by such Person), (F) non-cash charges
representing “last-in-first-out” inventory costs in excess of estimated replacement costs, (G) any
non-cash operating losses, (H) any losses resulting from a change in accounting principles and (I)
any minority interest expense to the extent identified as a line item in the financial statements
of such Person or its Consolidated Subsidiaries, less (ii) the sum, without duplication, of
(A) extraordinary gains or unusual non-cash gains, and (B) any non-cash gain that constitutes a
reversal or a recovery of any non-cash charges representing “last-in-first-out” inventory costs in
excess of estimated replacement costs, each determined on a consolidated basis in accordance with
GAAP for such Person and its Consolidated Subsidiaries.

          “Consolidated Subsidiaries” of a Person at any time shall mean those Subsidiaries of
such Person whose accounts are or should in accordance with GAAP be consolidated with those of such
Person.

          “Consolidated Tangible Assets” means, for a Person and its Consolidated Subsidiaries,
at any date, (i) Consolidated Total Assets of such Person and its Consolidated Subsidiaries
minus (ii) the portion of such Consolidated Total Assets attributable to positive goodwill,
unamortized non-compete agreements, organization costs, patents, trademarks, trade names,
copyrights, software and other intangible assets classified as such in accordance with GAAP.

          “Consolidated Tangible Net Worth” means, with respect to a Person and its Consolidated
Subsidiaries, the excess of (i) the Consolidated Tangible Assets of such Person and its
Consolidated Subsidiaries over (ii) the Consolidated Total Liabilities of such Person and its
Consolidated Subsidiaries, in each case computed and consolidated in accordance with GAAP.

          “Consolidated Total Assets” means, for a Person and its Consolidated Subsidiaries, at
any date, the aggregate net book value of the assets of such Person and its Consolidated
Subsidiaries on a consolidated basis after all appropriate adjustments in accordance

8

 

with GAAP (including, without limitation, reserves for doubtful receivables, obsolescence,
depreciation and amortization and excluding the amount of any write-up or revaluation of any asset
resulting from a non-cash transaction, and excluding any amounts due from employees and excluding
all loans to Affiliates, to the extent not made in the ordinary course of the business of such
Person or Consolidated Subsidiary).

          “Consolidated Total Liabilities” means, for a Person and its Consolidated
Subsidiaries, at any date, without duplication, all obligations which in conformity with GAAP would
be included in determining total liabilities as shown on the liabilities side of a balance sheet of
such Person and its Consolidated Subsidiaries including, without limitation, in any event, all
Indebtedness for borrowed money of such Person and its Consolidated Subsidiaries at such date
whether or not the same would be shown, excluding Minority Interests and any Subordinated
Indebtedness.

          “Continuing Directors” means (i) the directors of the Parent on the Effective Date and
(ii) each other director whose nomination for election to the board of directors of the Parent is
recommended by at least a majority of the then Continuing Directors.

          “Contributed Assets” has the meaning given to such term in Section 1.1 of the Holly
Contribution Agreement, but shall exclude the “Excluded Assets”, as defined in the Holly
Contribution Agreement.

          “Contribution Agreement” means the Amended and Restated Indemnity, Subrogation and
Contribution Agreement dated as of August 8, 2000, as amended and restated on the January 14, 2004,
among the Borrower and the Guarantor Companies in favor of the Agent, in form and substance
reasonably satisfactory to the Agent, as the same may be further amended, restated or otherwise
modified from time to time.

          “Default” means an event which, with the giving of notice or the lapse of time or
both, would constitute an Event of Default.

          “Depository Account Agreements” means each agreement, in form and substance reasonably
satisfactory to the Agent, among a Depository Bank, the Borrower and the Agent, delivered to the
Agent as required hereunder, as such Agreement may be amended or otherwise modified from time to
time.

          “Depository Accounts” means the lockbox accounts or blocked depository accounts
maintained by a Loan Party for the collection of the cash of such Loan Party and the proceeds of
Accounts Receivable and any other Collateral.

          “Depository Bank” means each financial institution at which a Depository Account is
maintained.

          “Disposition” has the meaning specified therefor in Section 7.02(c) hereof.

          “Dollar”, “Dollars” and the symbol “$” means lawful money of the
United States of America.

9

 

          “Effective Date” means the date on which all the conditions set forth in Section 5.01
hereof are satisfied or waived.

          “Eligible Accounts Receivable” means the Accounts Receivable of the Loan Parties
(other than Alon Interests and the Parent) which are, and at all times continue to be, reasonably
acceptable to the Agent in all respects. Criteria for eligibility may be established and revised
from time to time solely by the Agent in its exclusive judgment exercised reasonably. In general,
Accounts Receivable of the Loan Parties (other than Alon Interests and the Parent) shall be deemed
to be eligible to the extent that such Accounts Receivable are generated in the ordinary course of
business of such Loan Party and meet all of the following conditions: (i) delivery of the
merchandise or performance of the service giving rise to such Accounts Receivable has been
completed; (ii) no return, rejection or repossession has occurred; (iii) the merchandise or service
has been accepted by the Account Debtor without dispute, set-off, defense or counterclaim,
provided that if such Account Receivable is subject to dispute, set-off, defense or
counterclaim, the portion of such Account Receivable that the Agent determines in its reasonable
discretion is not subject to such dispute, set-off, defense or counterclaim and will be paid in due
course, will not be ineligible solely by reason of this clause (iii), (iv) such Account Receivable
(A) is owned by such Loan Party free and clear of any Lien, other than any Lien in favor of the WC
Collateral Agent, and (B) continues to be in full conformity with any and all representations and
warranties made by such Loan Party to the Agent and the Lenders with respect thereto in the Loan
Documents; (v) such Account Receivable is unconditionally payable in Dollars, in the case of
Accounts Receivable arising from the sale of jet fuel, asphalt and lubricants, within 75 days from
the invoice date, and in all other cases, within 30 days of the invoice date, and is not evidenced
by a promissory note, chattel paper or any other instrument or document; (vi) in the case of
Accounts Receivable arising from the sale of jet fuel, asphalt and lubricants, no more than 45 days
have elapsed from the invoice due date and no more than 120 days have elapsed from the invoice
date, and in all other cases, no more than 15 days have elapsed from the invoice due date and no
more than 30 days have elapsed from the invoice date; (vii) the Account Debtor with respect thereto
is not an Affiliate of any Loan Party, (viii) such Account Receivable does not constitute an
obligation of the United States or any other Governmental Authority unless such Loan Party has
provided to the Agent evidence, reasonably satisfactory to the Agent, that (A) the Accounts
Receivable of such Governmental Authority are not subject to the Assignment of Claims Act or any
state counterpart to the Assignment of Claims Act or (B) such Loan Party has complied in all
respects with the Assignment of Claims Act (or any such state counterpart) with respect to such
Accounts Receivable (it being understood that (y) the burden of such compliance shall rest solely
with such Loan Party and (z) without limiting the obligations of the Companies under Section 12.05
hereof, the Borrower shall reimburse the Agent upon demand for any reasonable expenses (including,
without limitation, the fees and other charges of legal counsel to the Agent) incurred by the Agent
to verify such compliance or otherwise in connection therewith); (ix) the Account Debtor (or the
applicable office of the Account Debtor) with respect thereto is located in the continental United
States, unless the Account Receivable is supported by a letter of credit issued by a Bank
satisfactory to the Agent in its reasonable discretion (or other similar obligation satisfactory to
the Agent in its sole discretion), such letter of credit has been delivered to the WC Collateral
Agent, the right to draw on such letter of credit has been assigned and transferred to the WC
Collateral Agent and the issuer of such letter of credit has consented to such assignment and
transfer; (x) the Account Debtor with respect thereto is not also a vendor to, supplier to or
creditor of any Loan Party,

10

 

unless such supplier or creditor has executed a no-offset letter satisfactory to the Agent in
its sole discretion; (xi) not more than 50% of the aggregate amount of all Accounts Receivable of
the Account Debtor with respect to such Account Receivable have remained unpaid, in the case of
Accounts Receivable arising from the sale of jet fuel, asphalt and lubricants, 15 days past the
invoice due date or 75 days past the invoice date, and in all other cases, 15 days past the invoice
due date or 30 days past the invoice date; (xii) the Accounts Receivable of such Account Debtor do
not exceed an amount equal to 15% of the aggregate of all Accounts Receivable at any date; (xiii)
the Account Debtor is not the subject of a “Bankruptcy Proceeding”; for purposes hereof an Account
Debtor is subject to a “Bankruptcy Proceeding” if such Account Debtor has filed a petition for
bankruptcy or any other relief under the United States Bankruptcy Code or any other law relating to
bankruptcy, insolvency, reorganization or relief of debtors, made an assignment for the benefit of
creditors, had filed against it any petition or other application for relief under the United
States Bankruptcy Code or any such other law, has failed, suspended business operations, become
insolvent, called a meeting of its creditors for the purpose of obtaining any financial concession
or accommodation, or had or suffered to be appointed a receiver or a trustee for all or a
significant portion of its assets or affairs; (xiv) credit card receivables, to the extent that (A)
the Agent is satisfied that the WC Collateral Agent has a perfected, first priority security
interest, securing the Obligations, (B) the Agent is satisfied that such Account Receivables comply
with all laws and regulations, and (C) such Account Receivables are otherwise satisfactory to the
Agent, including, without limitation, as to aging, default rate and such other criteria as the
Agent may consider relevant (all in the reasonable discretion of the Agent exercised in accordance
with the customary commercial practices of the Agent); and (xv) the Agent is, and continues to be,
satisfied with the credit standing of the Account Debtor in relation to the amount of credit
extended.

          “Eligible Assignee” means (i) any Lender or Affiliate of a Lender and (ii) with the
consent of the Agent and the Borrower, such consents not to be unreasonably withheld or delayed,
any other Person, provided, that the consent of the Borrower shall not be required after
the occurrence and during the continuance of a Default or an Event of Default.

          “Eligible Exchanged Inventory” means Exchanged Inventory owed to a Loan Party (other
than Alon Interests and the Parent) and constituting obligations that are, and at all times
continue to be, reasonably acceptable to the Agent in all respects. Criteria for eligibility may
be established and revised from time to time solely by the Agent in its exclusive judgment
exercised reasonably. In general, Exchanged Inventory of a Loan Party (other than Alon Interests
and the Parent) shall be deemed to be eligible to the extent that such Exchanged Inventory is
generated in the ordinary course of business of such Loan Party and meets all of the following
conditions: (i) such Person is obligated to transfer the Exchanged Inventory to such Loan Party,
free and clear of any right, title and interest of such Person and free and clear of any Lien
(other than any Lien in favor of the Agent), and in accordance with customary industry terms and
conditions for settlement of such transactions (as determined by the Agent), (ii) such obligation
arose in connection with the delivery in the ordinary course of business of Hydrocarbons or
Hydrocarbon Products by such Loan Party to such Person, (iii) the obligation to deliver such
Hydrocarbons or Hydrocarbon Products to such Loan Party is not subject to any dispute, set-off,
defense or counterclaim, (iv) such Person is not an Affiliate of any Loan Party, and (v) the Agent
is, and continues to be, satisfied with the credit standing of such Person in relation to the
amount of the Exchanged Inventory.

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          “Eligible Hydrocarbon Products” means the following Hydrocarbon Products: (i) crude
oil; (ii) gasoline; (iii) diesel fuel; (iv) jet fuel; (v) bitumen and other Hydrocarbon Products
derived from bitumen and any asphalt products; (vi) chemicals consisting of Propane, Propane Off
spec, Benzene, Toluene, Propylene — Chem Grade BS, and FAS 70, 104 and 104B; (vii) distillates
consisting of Jet A (Kerosene Base), Unfinished #2 Fuel Mixed Product, Light Oils — No 2 Dist,
Light Oils — Light Cycle, Low Sulfur Diesel Fuel, Low Sulfur No 1 Dist, and Low Sulfur Kerosene;
(viii) heavy oils and sulfur consisting of Heavy Oil — No 6 Fuel Oil and Heavy Fuel — Carbon Blk
Oil, and (ix) intermediates consisting of Methanol, Normal Butane, Alky Feed Stock, Isobutane,
Reformer Feed Stock, Gas Oil BS, Heavy Rerun Slop and Sulfur.

          “Eligible Inventory” means Inventory (other than Exchanged Inventory) consisting of
Eligible Hydrocarbon Products of a Loan Party which meet all of the following specifications: (i)
the Inventory is owned by a Loan Party (other than Alon Interests and the Parent) free and clear of
any existing Lien, other than that of the WC Collateral Agent and the Lenders under the Loan
Documents, it is not held on consignment or any other similar arrangement and may be lawfully sold
and it continues to be in full conformity with any representations and warranties made in this
Agreement and the other Loan Documents by such Loan Party with respect thereto; (ii) such Loan
Party has the right to assign its interest therein and the power to grant Liens thereon and
security interests therein; (iii) the Inventory does not represent unsaleable product; (iv) no
Account Receivable or, except as permitted by clause (vi)(B) below, document of title has been
created or issued with respect to such Inventory; (v) the Inventory is readily marketable for sale
by such Loan Party; (vi) the Inventory is (A) located in one of the locations in one of the United
States listed on Part A of Schedule 6.01(e) hereto or such other locations in the continental
United States as the Agent shall approve in writing from time to time or (B) “in transit”, provided
that such “in-transit” Inventory is or will be Inventory that is or will be shipped under a Letter
of Credit issued by the L/C Issuer pursuant to this Agreement to a location in the United States
described in clause (vi)(A) above; and (vii) the Inventory is not otherwise regarded by the Agent,
in its reasonable discretion, as unsuitable Collateral for the Obligations, and is and at all times
shall continue to be reasonably acceptable to the Agent in all respects. In no event shall
Hydrocarbons or Hydrocarbon Products involved in throughput operations or held in the Loan Parties’
terminals or trucks but not owned by or contracted to such Loan Parties be considered Eligible
Inventory (provided, however, that Accounts Receivable arising out of the storage,
handling or throughputting of such non-owned Hydrocarbons or Hydrocarbon Products may be deemed
Eligible Accounts Receivable, subject to the other conditions set forth in the definition of such
term).

          “Employee Plan” means an employee benefit plan (other than a Multiemployer Plan)
covered by Title IV of ERISA and maintained (or was maintained at any time during the six (6)
calendar years preceding the date of any borrowing hereunder) for employees of the Companies or any
of their ERISA Affiliates.

          “Environmental Actions” refers to any complaint, summons, citation, notice, directive,
order, claim, litigation, investigation, judicial or administrative proceeding, judgment, letter or
other written communication from any governmental agency, department, bureau, office or other
authority, or any third party involving violations of Environmental Laws or Releases of Hazardous
Materials (i) from any assets, properties or businesses of any Loan Party or any of its

12

 

Subsidiaries or any predecessor in interest; or (ii) from or onto any adjoining properties or
businesses; or (iii) from or onto any facilities which received Hazardous Materials generated by
any Loan Party or any of its Subsidiaries or any predecessor in interest.

          “Environmental Costs” means any monetary obligations, losses, liabilities (including
strict liability), damages, punitive damages, consequential damages, treble damages, costs and
expenses (including all reasonable out-of-pocket fees, disbursements and expenses of counsel,
out-of-pocket expert and consulting fees and out-of-pocket costs for environmental site
assessments, remedial investigation and feasibility studies), fines, penalties, sanctions and
interest incurred as a result of any Environmental Action filed by any Governmental Authority or
any third party which relate to any violations of Environmental Laws, Remedial Actions, Releases or
threatened Releases of Hazardous Materials from or onto any property presently or formerly owned or
operated by any Company or any Subsidiary, or a predecessor in interest to the extent relating to
the Refinery, Terminals, or Pipelines, or any Hazardous Materials generated and disposed of offsite
by any Company, or any Subsidiary of the Company or a predecessor in interest to the extent
relating to the Refinery, Terminals, or Pipelines.

          “Environmental Law” means the Comprehensive Environmental Response, Compensation, and
Liability Act (42 U.S.C. § 9601, et seq.), the Hazardous Materials Transportation
Act (49 U.S.C. § 1801, et seq.), the Resource Conservation and Recovery Act (42
U.S.C. § 6901, et seq.), the Federal Water Pollution Control Act (33 U.S.C. § 1251
et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Toxic
Substances Control Act (15 U.S.C. § 2601 et seq.) and the Occupational Safety and
Health Act (29 U.S.C. § 651 et seq.), as such laws may be amended or supplemented
from time to time, and any other present or future federal, state, local or foreign statute,
ordinance, rule, regulation, order, judgment, decree, permit, license or other binding
determination of any Governmental Authority imposing liability or establishing standards of conduct
for protection of the environment.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and, unless the context otherwise requires, the rules and regulations promulgated
thereunder from time to time.

          “ERISA Affiliate” means, with respect to any Person, any trade or business (whether or
not incorporated) which is a member of a group of which such Person is a member and which would be
deemed to be a “controlled group” within the meaning of Sections 414(b), (c), (m) and (o) of the
Internal Revenue Code.

          “Eurodollar Base Rate” means, with respect to any Eurodollar Loan, the quotation
(expressed as percentage per annum and rounded upwards, if necessary, to the next 1/16 of 1%)
appearing on Telerate Page 3750 as of 11:00 a.m., New York time, two (2) Business Days prior to the
commencement of such Interest Period for U.S. Dollar deposits in the Interbank Market in the
approximate amount of such Eurodollar Loan to be outstanding during such Interest Period and for a
period equal to such Interest Period. Notwithstanding the foregoing, if no such rate appears on
Telerate Page 3750, then the Eurodollar Base Rate for such Interest Period shall be the rate
(rounded upwards, if necessary, to the next 1/16 of 1%) at which deposits in United States dollars
are offered to the Agent by prime banks in the Interbank Market in immediately available funds at
approximately 11:00 a.m., at the place of such Interbank Market, two (2)

13

 

Business Days prior to the commencement of such Interest Period in the approximate amount of
such Eurodollar Loan to be outstanding during such Interest Period and for a period equal to such
Interest Period.

          “Eurodollar Loan” means a Revolving Credit Loan bearing interest based on the
Eurodollar Rate.

          “Eurodollar Rate” means with respect to each day during each Interest Period
pertaining to a Eurodollar Loan, a rate per annum determined for such day in accordance with the
following formula (rounded upwards, if necessary, to the nearest 1/16 of 1%):

Eurodollar Base Rate

1.00 — Reserve Requirements

          “Event of Default” means any of the events set forth in Section 10.01 hereof.

          “Exchanged Inventory” means Inventory of a Person (other than a Company) consisting of
Hydrocarbons or Hydrocarbon Products that such Person is obligated to transfer to a Company in
connection with product exchange arrangements.

          “Existing Effective Date” means January 14, 2004.

          “Existing Revolving Credit Agreement” has the meaning specified therefor in the
recitals hereto.

          “Extension Notice” has the meaning specified therefor in Section 2.13(d) hereof.

          “Facility Floor” means, as of any date, $160,000,000, as such amount may be
permanently increased from time to time in accordance with Section 2.13(b).

          “Facility Sublimit” means, as of any date, an aggregate amount equal to the sum of the
Facility Floor plus the Oil Price Adjustment, if any, as determined in accordance with Section
2.13; provided, that, in no event shall the Facility Sublimit exceed the Total Commitment.

          “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum
equal for each day during such period of the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day which is a Business Day, the average of the quotations for
such day on such transactions received by the Agent from three Federal funds brokers of recognized
standing selected by it.

          “Field Examination Fee” has the meaning specified therefor in Section 2.08(d) hereof.

          “Final Maturity Date” means the earlier to occur of (i) the Termination Date or (ii)
the date this Agreement is terminated pursuant to Section 12.01(a) or Section 12.01(b) hereof.

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          “Financial Statements” means (i) the audited consolidated balance sheets, consolidated
statements of income and consolidated statements of stockholders’ equity and consolidated
statements of cash flow of the Parent and its Consolidated Subsidiaries as of December 31, 2004,
audited by KPMG, LLP, and (ii) the unaudited consolidated balance sheets, consolidated statements
of income and consolidated statements of cash flow of the Parent and its Consolidated Subsidiaries
as of the Fiscal Quarter ending September 30, 2005, reviewed by KPMG, LLP.

          “Fiscal Month” means a fiscal month of the Parent and its Consolidated Subsidiaries
ending on the last day of a calendar month.

          “Fiscal Quarter” means a fiscal quarter of the Parent and its Consolidated
Subsidiaries ending on March 31, June 30, September 30 or December 31.

          “Fiscal Year” means a fiscal year of the Parent and its Consolidated Subsidiaries
ending on December 31 of each year.

          “Fixed Assets” means any Capital Stock issued by a Subsidiary of a Company and owned
by the Companies, any Indebtedness owed by one Company to another Company which is evidenced by a
promissory note, the Refinery, any other refinery, any Terminal, any Pipeline and any other real
property, fixture or equipment of any Company wherever located and whether now or hereafter
existing or arising and whether now owned or hereafter acquired.

          “FTPL” means Fin-Tex Pipe Line Company, a Texas corporation.

          “GAAP” means generally accepted accounting principles in effect from time to time in
the United States, applied on a consistent basis, provided that for the purposes of Section
7.02(i) and the definitions used therein, “GAAP” shall mean generally accepted accounting
principles in effect on the date hereof and consistent with those used in the preparation of the
Financial Statements.

          “Governmental Authority” means any nation or government, any state or other political
subdivision thereof and any department, commission, board, bureau, instrumentality, agency, court
or other entity exercising executive, legislative, judicial, regulatory or administrative functions
of or pertaining to government.

          “Guaranties” means (i) the guaranty made by the Guarantor Companies contained in
Article XI hereof guaranteeing the Obligations and (ii) any other guaranty, in form and substance
satisfactory to the Agent, made by any Person in favor of the Lenders, guaranteeing all or any
portion of the Obligations.

          “Guarantor Companies” means the Companies party hereto from time to time, other than
the Borrower.

          “Guarantors” means the Guarantor Companies and all Persons which hereafter guarantee,
pursuant to Section 7.01(b) hereof or otherwise, all or any part of the Obligations.

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          “Hazardous Materials” shall include (i) any element, compound, or chemical that is
defined, listed or otherwise classified as a contaminant, pollutant, toxic pollutant, toxic or
hazardous substances, extremely hazardous substance or chemical, hazardous waste, special waste, or
solid waste that contains hazardous constituents under Environmental Laws; (ii) petroleum and its
refined products; (iii) polychlorinated biphenyls; (iv) any substance exhibiting a hazardous waste
characteristic including but not limited to corrosivity, ignitability, toxicity or reactivity as
well as any radioactive or explosive materials; and (v) any asbestos-containing materials and
manufactured products containing Hazardous Materials.

          “Hedging Agreement” means any interest rate, foreign currency, commodity or equity
swap, collar, cap, floor, exchange transaction, forward agreement, or other forward or other
exchange or protection agreement or arrangement designed to protect against fluctuations in
interest rates or currency, commodity (including, without limitation, Hydrocarbons or Hydrocarbon
Products, and whether or not the subject commodities are to be delivered) or equity values
(including, without limitation, any option with respect to any of the foregoing and any combination
of the foregoing agreements or arrangements), and any confirmation executed in connection with any
such agreement or arrangement, all as amended or otherwise modified from time to time.

          “Holly” means Holly Energy Partners, L.P., a Delaware limited partnership.

          “Holly Contribution Agreement” means the Contribution Agreement dated as of January
25, 2005, among Holly, Holly Energy Partners Operating L.P., the Transferors, Alon Pipeline Assets,
Alon Logistics, Alon USA and the Borrower.

          “Hydrocarbon Products” means all liquid, semi-liquid and gaseous Hydrocarbon products
of a Company derived from Hydrocarbons and/or other feedstocks and blendstocks processed at the
Refinery, including, without limitation, crude oil, gasoline, diesel fuel, jet fuel, bitumen,
asphalt, propane, propylene, butane, benzene, aromatic solvents, carbon black oil and sulfur.

          “Hydrocarbons” means oil, gas, casinghead gas, drip gasoline, natural gasoline,
condensate, distillate, and any other liquid or gaseous hydrocarbons and all products refined or
separated therefrom.

          “IDB” means Israel Discount Bank of New York.

          “Immaterial Company” means each Company other than Alon Interests that, (i) accounts
for less than (A) 3% of consolidated revenues of Alon USA and its Consolidated Subsidiaries, or (B)
3% of consolidated earnings of Alon USA and its Consolidated Subsidiaries before interest and
taxes, in each case for the immediately preceding four fiscal quarters of Alon USA ending as of the
last day of the most recent fiscal quarter in respect of which the financial statements have been
delivered pursuant to Section 7.01, or (ii) has assets which represent less than 3% of the
consolidated assets of Alon USA and its Consolidated Subsidiaries as of the last day of the most
recent fiscal quarter of Alon USA in respect of which the financial statements have been delivered
pursuant to Section 7.01.

16

 

          “Indebtedness” means as to any Person, without duplication, (i) indebtedness for
borrowed money; (ii) indebtedness for the deferred purchase price of property or services (other
than current trade payables incurred in the ordinary course of business and payable in accordance
with customary practices); (iii) indebtedness evidenced by bonds, debentures, notes or other
similar instruments (other than performance, surety and appeal or other similar bonds arising in
the ordinary course of business); (iv) obligations and liabilities secured by a Lien upon property
owned by such Person, whether or not owing by such Person and even though such Person has not
assumed or become liable for the payment thereof; (v) obligations and liabilities directly or
indirectly guaranteed by such Person; (vi) obligations or liabilities created or arising under any
conditional sales contract or other title retention agreement with respect to property used and/or
acquired by such Person, whether or not the rights and remedies of the lessor, seller and/or lender
thereunder are limited to repossession of such property; (vii) Capitalized Lease Obligations;
(viii) all liabilities in respect of letters of credit, acceptances and similar obligations created
for the account of such Person; (ix) net liabilities of such Person under (A) Hedging Agreements
and (B) foreign currency exchange agreements, each calculated on a basis reasonably satisfactory to
the Agent and in accordance with accepted practice; and (x) all other items which, in accordance
with GAAP, would be included as liabilities on the liability side of the balance sheet of such
Person.

          “Indemnification Agreement” means the Indemnification Agreement entered into on the
Pipeline Transactions Effective Date, between Alon Logistics and HEP Logistics Holdings, L.P., a
Delaware limited partnership.

          “Indemnitees” has the meaning specified therefor in Section 12.16 hereof.

          “Initial Oil Increase Period” has the meaning specified therefor in Section 2.13(c)
hereof.

          “Interbank Market” means the London interbank market.

          “Interest Period” means with respect to any Eurodollar Loan, the period commencing on
the borrowing date or the date of any continuation of or conversion into such Eurodollar Loan, as
the case may be, and ending one, two, three or six months thereafter, in each case as selected by
the Borrower in the applicable notice given to the Agent pursuant to Sections 2.03 or 2.11 hereof;
provided that (i) any Interest Period that would otherwise end on a day that is not a
Business Day shall be extended to the next succeeding Business Day, unless such Business Day falls
in another calendar month, in which case such Interest Period shall end on the next preceding
Business Day, (ii) no Interest Period for any Eurodollar Loan shall end after the Final Maturity
Date, and (iii) no more than three (3) Interest Periods for the Borrower may exist at any one time.

          “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time
to time.

          “Inventory” means all Hydrocarbons, Hydrocarbon Products, other goods and other
merchandise of a Person including, but not limited to, all raw materials, work in process, finished
goods, materials and supplies of every nature used or usable in connection with the

17

 

manufacture, shipping, storing, advertising or sale of such goods and merchandise, whether now
owned or hereafter acquired and all such property the sale or other disposition of which may give
rise to Accounts Receivable.

          “Investment” has the meaning specified therefor in Section 7.02(e) hereof.

          “Joinder Agreement” means a Joinder Agreement, substantially in the form of Exhibit F
hereto, executed by a Subsidiary of a Company made a party hereto pursuant to Section 7.01(b)
hereof.

          “L/C Issuer” means each of IDB and Bank Leumi, each in their respective capacities as
an issuer of Letters of Credit pursuant to Sections 3.01 and 3.03(a).

          “Lease Agreement” means the Lease Agreement by and among Alon Refining, Alon Pipeline,
APPL, FTPL and T& R Assets, Inc., a Texas corporation, as lessors, and the Borrower, as lessee,
dated as of the Original Effective Date, as the same may be amended or otherwise modified from time
to time.

          “Lease Assignment” means the landlord’s consent, waiver and estoppel by Alon Refining,
Alon Pipeline, APPL, FTPL and T& R Assets, Inc., a Texas corporation, as lessors under the Lease
Agreement, in favor of the Agent, in form and substance satisfactory to the Agent.

          “Lease Documents” means the Lease Agreement and each other agreement, instrument or
document required to be delivered pursuant thereto.

          “Lender” and “Lenders” have the meanings specified therefor in the preamble
hereto.

          “Letter of Credit” has the meaning specified therefor in Section 3.01(a).

          “Letter of Credit Administration Fee” has the meaning specified therefor in Section
3.03(b)(i) hereof.

          “Letter of Credit Amendment Fee” has the meaning specified therefor in Section
3.03(b)(i) hereof.

          “Letter of Credit Application” has the meaning specified therefor in Section 3.01(a)
hereof.

          “Letter of Credit Collateral Account” has the meaning specified therefor in Section
3.01(b) hereof.

          “Letter of Credit Fees” means, collectively, (i) the Letter of Credit Administration
Fees, payable to the Agent for the account of the L/C Issuer, (ii) the Letter of Credit Issuance
Fees and the Letter of Credit Amendment Fees payable to the Agent for the account of the Lenders
pursuant to Section 3.03(b)(i) hereof and (iii) the charges of the L/C Issuer payable by the
Borrower in accordance with Section 3.03(b)(ii) hereof.

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          “Letter of Credit Issuance Fee” has the meaning specified therefor in Section
3.03(b)(i) hereof.

          “Letter of Credit Obligations” means, at any time and without duplication, the sum of
(i) the Reimbursement Obligations at such time, plus (ii) the aggregate maximum amount
available for drawing under the Letters of Credit outstanding at such time, plus (iii) all
amounts for which the L/C Issuer may be liable pursuant to any Letter of Credit in connection with
any steamship guaranty, airway release, indemnity or delivery order issued by the L/C Issuer at the
request of or for the benefit of the Borrower, in each case as calculated by the L/C Issuer.

          “License Agreement” means the Alliance Agreement dated effective as of January 1,
2002, by and between Wright Asphalt Products Co. and Alon USA, LP.

          “Lien” means any mortgage, deed of trust, pledge, lien, security interest, charge or
other encumbrance or security arrangement of any nature whatsoever, including but not limited to
any conditional sale or title retention arrangement, and any assignment, deposit arrangement or
lease intended as, or having the effect of, security.

          “Loan Account” means one or more ledger accounts for the Borrower maintained at the
Payment Office of the Agent in the name of the Borrower under which the Borrower will be charged
with all Revolving Credit Loans made to, and all other Obligations incurred by, the Borrower or
such other account as the Agent shall designate from time to time.

          “Loan Documents” means this Agreement, the Revolving Credit Notes, the Guaranties, the
Security Documents, the Cash Concentration Account Agreement, the Depository Account Agreements,
the Contribution Agreement, the Letter of Credit Applications, each Joinder Agreement, each Lease
Assignment, each Revolving Loan Amendment Document, each Subordination Agreement (Intercompany) and
all other instruments, agreements and other documents executed and delivered pursuant hereto or
thereto.

          “Loan Parties” means the Borrower and the Guarantors.

          “Material Adverse Effect” means a material adverse effect upon (i) the business,
condition (financial or otherwise), operations, properties or prospects of the Borrower or the
Companies taken as a whole, (ii) the ability of the Loan Parties (taken as a whole) to perform
their material obligations hereunder or under any other Loan Document to which each such Loan Party
is a party, (iii) the creation, priority or perfection of a Lien arising under the Loan Documents
on any Collateral (except as otherwise expressly provided in any Loan Document and except for any
such Lien on Collateral with a market value of $3,000,000 or less to the extent that such material
adverse effect is remedied within 60 days after any Company obtains knowledge thereof), or (iv) the
rights, powers and remedies of the Agent, the WC Collateral Agent and the Lenders under this
Agreement or any other Loan Document or the legality, validity or enforceability of this Agreement
or any other Loan Document.

          “Minimum Oil Increase Period” means a period not to expire prior to the last day of
the second fiscal month following the date of the then current Notice of Facility Sublimit Increase
or the Extension Notice, as the case may be.

19

 

          “Minority Interest” means an interest in a Company, held by a Person or Persons (other
than Alon Israel or another Company) which is set forth on the balance sheet of a Person and its
Consolidated Subsidiaries as a “Minority Interest in Subsidiaries”.

          “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

          “Mortgage and Deed of Trust (Holly)” means the Mortgage and Deed of Trust entered into
on the Pipeline Transaction Effective Date, between Borrower and Holly.

          “Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of
ERISA for which any Company or any of their ERISA Affiliates has contributed to, or has been
obligated to contribute to, at any time during the six (6) years preceding the date hereof.

          “Net Amount of Eligible Accounts Receivable” means the aggregate unpaid invoice amount
of Eligible Accounts Receivable less, without duplication, sales, excise or similar taxes, returns,
discounts, chargebacks, claims, advance payments, credits, offsets, reserves and allowances of any
nature at any time issued, owing, granted, outstanding, available or claimed by an Account Debtor
of a Loan Party (other than Alon Interests and the Parent) with respect to such Eligible Accounts
Receivable, to the extent not already accounted for in the definition herein of Eligible Accounts
Receivable.

          “Net Proceeds” means (a) with respect to the sale or other disposition of any asset by
the Companies or any of their Subsidiaries (including in connection with any sale-leaseback), the
excess, if any, of (i) the aggregate amount received in cash (including any cash received by way of
deferred payment pursuant to a note receivable, other non-cash consideration or otherwise, but only
as and when such cash is so received) in connection with such sale or other disposition, over (ii)
the sum of (A) the principal amount of any Indebtedness which is secured by a Permitted Lien on any
such asset (other than Indebtedness assumed by the purchaser of such asset) or which is required to
be, and is, repaid in connection with the sale or other disposition thereof (other than
Indebtedness hereunder), (B) the reasonable out-of-pocket expenses and fees incurred by the
Companies or their Subsidiaries in connection with such sale or other disposition, and provided
that all such expenses and fees are set forth on a certificate provided to the Agent, (C) federal
and state taxes incurred in connection with such sale or other disposition, whether payable at such
time or thereafter and (D) the amount of any PT Consideration paid by any Loan Party as a dividend
and (b) with respect to the sale or other disposition of any Capital Stock or debt security by the
Companies or any of their Subsidiaries, the excess of (i) the aggregate amount received in cash
(including any cash received by way of deferred payment pursuant to a note receivable, other
non-cash consideration or otherwise, but only as and when such cash is so received) in connection
with such sale or other disposition, over (ii) the sum of (A) the reasonable fees, commissions,
discounts and other out-of-pocket expenses incurred by the Companies or their Subsidiaries in
connection with such sale or other disposition, and (B) federal and state taxes incurred in
connection with such sale or other disposition, whether payable at such time or thereafter.

          “Notice of Borrowing” has the meaning specified therefor in Section 2.03 hereof.

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     “Notice of Facility Sublimit Increase” has the meaning specified therefor in
Section 2.13(c) hereof.

     “Obligations” means (i) the obligations of the Borrower to pay, as and when due and
payable (by scheduled maturity or otherwise), all amounts from time to time owing by it in respect
of any Loan Document to which it is a party, whether for principal, interest (including, without
limitation, all interest that accrues after the commencement of any case, proceeding or other
action relating to bankruptcy, insolvency or reorganization of a Loan Party, whether or not a claim
for post-filing interest is allowed in such proceeding), Letter of Credit Obligations, fees,
commissions, expense reimbursements, indemnifications or otherwise, and (ii) the obligations of the
Borrower to perform or observe all of its other obligations from time to time existing under any
Loan Document to which it is a party.

     “Oil Price Adjustment” has the meaning specified therefor in Section 2.13(a) hereof.

     “Original Effective Date” means August 8, 2000.

     “Other Taxes” has the meaning specified therefor in Section 2.12 hereof.

     “P&T Agreement” means the Pipeline and Terminals Agreement, entered into on the
Pipeline Transaction Effective Date between the Borrower and Holly.

     “P&T Contracts” means the Holly Contribution Agreement, the P&T Agreement, the limited
partnership agreement of Holly (including the amendment thereto entered into in connection with the
Pipeline Transactions), the Mortgage and Deed of Trust (Holly), the Indemnification Agreement, the
Subordination Agreement and all other agreements entered into in connection with the Pipeline
Transactions.

     “Parent” has the meaning specified therefor in the preamble hereto.

     “Patriot Act” means the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L. No. 107-56
(signed into law October 26, 2001)).

     “Payment Office” means the Agent’s offices located at 511 Fifth Avenue, New York, New
York, 10017, or such other offices as the Agent may designate and, when used in connection with any
payments made to the Agent, shall mean the Agent Account.

     “Permitted Investments” means (i) marketable direct obligations issued or
unconditionally guaranteed by the United States Government or issued by any agency thereof and
backed by the full faith and credit of the United States or marketable direct obligations issued or
unconditionally guaranteed by any State or agency thereof and backed by the full faith and credit
of such State, in each case maturing within one year from the date of acquisition thereof, (ii)
commercial paper, maturing not more than 270 days after the date of issue rated P-1 by Moody’s or
A-1 by Standard & Poor’s, (iii) overnight bank deposits, certificates of deposit and bankers’
acceptances, in each case maturing not more than 360 days after the date of issue, issued by any
Lender or other commercial banking institutions and money market or time or demand

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deposit accounts maintained at any Lender or other commercial banking institutions, each
commercial banking institution (other than any Lender) of which is a member of the Federal Reserve
System and has a combined capital and surplus and undivided profits of not less than $500,000,000,
(iv) investments in securities with maturities of six months or less from the date of acquisition
issued or fully guaranteed by any state, commonwealth or territory of the United States of America,
or by any political subdivision or taxing authority thereof, and rated at least “A” by Standard &
Poor’s or “A-2” by Moody’s, (v) repurchase agreements having maturities of not more than 90 days
from the date of acquisition which are entered into with the commercial banking institutions
described in clause (iii) above and which are secured by readily marketable direct obligations of
the Government of the United States of America or any agency thereof, and (vi) investments in
“money market funds” within the meaning of Rule 2a-7 of the Investment Company Act of 1940, as
amended, substantially all of whose assets are invested in investments of the type described in
clauses (i) through (iii) and (v) herein.

     “Permitted Lien” has the meaning specified therefor in Section 7.02(a) hereof.

     “Person” means an individual, corporation, limited liability company, partnership,
association, joint-stock company, trust, unincorporated organization, joint venture or Governmental
Authority.

     “Pipelines” means the real property interests described in Schedule D hereto and any
other Pipeline now or hereafter owned or leased by any Company.

     “Pipeline Transactions” means (i) the contribution, transfer, assignment and delivery
by the Transferors, as a capital contribution, of the Contributed Assets to Alon Pipeline Assets,
in consideration for equity interests in Alon Pipeline Assets; (ii) the assignment by the
Transferors of the Assumed Liabilities to Alon Pipeline Assets and the assumption of such Assumed
Liabilities by Alon Pipeline Assets; (iii) the contribution, transfer, assignment and delivery by
the Transferors, as a capital contribution, of all of the equity interests held by the Transferors
in Alon Pipeline Assets to Alon Logistics, in consideration for equity interests in Alon Logistics;
(iv) the transfer by Alon Logistics of all of the equity interests held by Alon Logistics in Alon
Pipeline Assets, in consideration for the PT Consideration; (v) the execution and delivery of the
P&T Agreement; and (v) the other transactions provided for in the Holly Contribution Agreement and
in the P&T Agreement.

     “Pipeline Transaction Effective Date” has the meaning assigned to such term in of the
First Amendment to the Existing Credit Agreement dated February 10, 2005.

     “Post-Default Rate” means a rate of interest per annum equal to the rate of interest
otherwise in effect plus 2% or, if no other rate of interest is in effect, the Base Rate plus 2%.

     “Prime Rate” means the rate of interest publicly announced by IDB in New York, New
York from time to time as its prime rate. The prime rate is determined from time to time by IDB as
a means of pricing some loans to its borrowers and neither is tied to any external rate of interest
or index, nor necessarily reflects the lowest rate of interest actually charged by IDB to any
particular class or category of customers. Each change in the Prime Rate shall be effective on the
first day of the month following the date such change is announced.

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     “Production Increase” has the meaning specified therefor in Section 2.13(b) hereof.

     “Pro Rata Share” means, with respect to any Lender, a fraction (expressed as a
percentage), the numerator of which shall be the amount of such Lender’s Revolving Credit
Commitment and the denominator of which shall be the Total Commitment, provided that, if the Total
Commitment has been reduced to zero, the numerator shall be the aggregate unpaid principal amount
of such Lender’s Revolving Credit Loans and participations in Letter of Credit Obligations and the
denominator shall be the aggregate unpaid principal amount of all of the Revolving Credit Loans and
participations in Letter of Credit Obligations.

     “PT Consideration” means (i) the payment by Holly to Alon Logistics of the Cash
Consideration; and (ii) the delivery by Holly to Alon Logistics of certificates representing the
Unit Consideration, which were initially issued in the name of Alon Logistics.

     “Refinery” means the refinery owned by the Companies as of the Effective Date and
located near Big Spring, Texas, the fee interest owned by Alon Refining in approximately 1,278
acres of land on which the refinery is situated, use or license rights covering tracts of land
adjoining the railroad lines, spurs or sidings within the boundary of the refinery site, all
easements, rights of way and privileges granted to Alon Refining within or adjoining the refinery
site, all improvements, all machinery and equipment, and the interest of Alon Refining as lessee in
all leases of personal property used or held for use by Alon Refining in connection with such
refinery.

     “Reimbursement Obligations” means the obligations of the Borrower to reimburse the L/C
Issuer and the Lenders for amounts payable by the L/C Issuer or the Lenders under a Letter of
Credit in respect of any drawing made under any Letter of Credit, together with interest thereon as
provided in Section 2.06 hereof and Section 3.01(c) hereof.

     “Release” means any spilling, leaking, pumping, pouring, emitting, emptying,
discharging, injecting, escaping, leaching, seeping, migrating, dumping, or disposing of any
Hazardous Material (including the abandonment or discarding of barrels, containers, and other
closed receptacles containing any Hazardous Material) into the indoor or outdoor environment,
including ambient air, soil, surface or ground water.

     “Remedial Action” means all actions taken to (i) clean up, remove, remediate, contain,
treat, monitor, assess, evaluate or in any other way address Hazardous Materials in the indoor or
outdoor environment; (ii) prevent or minimize a Release or threatened Release of Hazardous
Materials so they do not migrate or endanger or threaten to endanger public health or welfare or
the indoor or outdoor environment; (iii) perform pre-remedial studies and investigations and
post-remedial operation and maintenance activities; or (iv) any other actions authorized by 42
U.S.C. 9601.

     “Reportable Event” means an event described in Section 4043 of ERISA (other than an
event described in Section 4043(c)(7) of ERISA.

     “Required Lenders” means, at any time, Lenders whose Pro Rata Shares aggregate at
least 51%.

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     “Reserve Requirements” means, for any day as applied to a Eurodollar Loan, the
aggregate (without duplication) of the rates (expressed as a decimal fraction) of reserve
requirements in effect on such day (including, without limitation, basic, supplemental, marginal
and emergency reserves under any regulations of the Board or other Governmental Authority having
jurisdiction with respect thereto) dealing with reserve requirements prescribed for eurocurrency
funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board)
maintained by a member bank of the Federal Reserve System. Eurodollar Loans shall be deemed to
constitute Eurocurrency Liabilities and to be subject to such reserve requirements without benefit
of or credit for proration, exceptions or offsets which may be available from time to time to any
Lender or the Affiliate of any Lender under Regulation D.

     “Responsible Officer” means a person that is any of the chairman of the board of
directors, chief executive officer, or chief financial officer of any Person.

     “Restricted Payment” has the meaning specified therefor in Section 7.02(f).

     “Revolving Credit Commitment” means, with respect to each Lender, the revolving credit
commitment of such Lender as set forth in Schedule B hereto, as the same may be adjusted from time
to time pursuant to the terms of this Agreement.

     “Revolving Credit Loan” means a loan made by a Lender to the Borrower pursuant to
Section 2.01(a) hereof.

     “Revolving Credit Notes” means each amended promissory note of the Borrower,
substantially in the form of Exhibit A hereto, made payable to the order of a Lender and evidencing
the Indebtedness and other Obligations resulting from the making by such Lender of Revolving Credit
Loans and delivered to the Agent, as such promissory note may be modified or extended from time to
time, and any promissory note or notes issued in exchange or replacement therefor.

     “Revolving Loan Amendment Documents” means this Agreement and each other Loan Document
delivered on the Effective Date pursuant to Article V hereof.

     “Revolving Priority Collateral” means (i) all Accounts Receivable, (ii) all Inventory,
(iii) all assets and properties arising out of or related to the foregoing, including, without
limitation, all accounts (as defined in the Uniform Commercial Code in effect in the State of New
York), general intangibles, payment intangibles, contract rights, commercial tort claims, chattel
paper, instruments, documents, letters of credit, banker’s acceptances and similar instruments,
deposit accounts, securities accounts, supporting obligations and all present and future Liens
supporting or securing the foregoing, choses in action or causes of actions or claims, in each case
arising out of, related to or supporting the payment or performance of Accounts Receivable or
Inventory and (iv) all proceeds (whether cash or noncash) of the foregoing, all as more fully
described in the Security Agreement.

     “SCS” means Southwest Convenience Stores LLC, a Texas limited liability Agreement.

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     “SEC” means the United States Securities and Exchange Commission and any successor
thereto.

     “Securities Act” means the Securities Act of 1933, as in effect from time to time.

     “Security Agreement” means the Amended and Restated Security Agreement, dated as of
August 8, 2000, as amended, restated and consolidated on January 14, 2004, by the Borrower and each
of the Companies in favor of the WC Collateral Agent, substantially in the form of Exhibit B
hereto, as the same may be amended, supplemented or otherwise modified from time to time.

     “Security Documents” means, collectively, the Security Agreement and the Lease
Assignment executed and delivered by a Company, and all Uniform Commercial Code financing
statements required by this Agreement and the Security Documents to be filed with respect to the
security interests in personal property and fixtures created pursuant to such agreements, and all
other documents and agreements executed and delivered by the Companies in connection with any of
the foregoing documents.

     “Settlement Period” has the meaning specified therefor in Section 2.05(e) hereof.

     “Solvent” means, with respect to any Person on a particular date, that on such date
(a) the fair value of the property of such Person is not less than the total amount of its
liabilities (including, without limitation, liabilities on all claims, whether or not reduced to
judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed,
legal, equitable, secured or unsecured) of such Person, (b) the present fair salable value of the
assets of such Person is not less than the amount that will be required to pay the probable
liability of such Person on its existing debts as they become absolute and matured, (c) such Person
is able to realize upon its assets and pay its debts and other liabilities, contingent obligations
and other commitments as they mature in the normal course of business, (d) such Person does not
intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s
ability to pay as such debts and liabilities mature, and (e) such Person is not engaged in business
or a transaction, and is not about to engage in business or a transaction, for which such Person’s
property would constitute unreasonably small capital.

     “Standard & Poor’s” means Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc., and any successor thereto.

     “Subordination Agreement” means the Subordination, Non-Disturbance and Attornment
Agreement entered into at the closing of the Pipeline Transactions, between the administrative
agent named therein for the Credit Parties defined therein, the Agent and the Borrower.

     “Subordination Agreement (Intercompany)” means a Subordination Agreement, in the form
of Exhibit C hereto, by and among (i) a Loan Party or a Subsidiary of a Loan Party, as obligor, and
(ii) a Loan Party or a Subsidiary of a Loan Party, as subordinated creditor, in favor of the Agent,
pursuant to which intercompany Indebtedness is subordinated to the prior payment in full of the
Obligations.

25

 

     “Subordinated Indebtedness” means Indebtedness of any Loan Party and any of its
Subsidiaries to any other Loan Party or any of its Subsidiaries that has been expressly
subordinated in right of payment to all Indebtedness of such Loan Party under the Loan Documents by
a Subordination Agreement (Intercompany).

     “Subsequent Oil Increase Period” has the meaning specified therefor in Section
2.13(d).

     “Subsidiary” means, with respect to any Person at any date, any corporation, limited
or general partnership, limited liability company, trust, association or other entity (i) the
accounts of which would be consolidated with those of such Person in such Person’s consolidated
financial statements if such financial statements were prepared in accordance with GAAP or (ii) of
which more than 50% of (A) the outstanding Capital Stock having (in the absence of contingencies)
ordinary voting power to elect a majority of the board of directors of such corporation, (B) the
interest in the capital or profits of such partnership or limited liability company or (C) the
beneficial interest in such trust or estate is, at the time of determination, owned or controlled
directly or indirectly through one or more intermediaries, by such Person.

     “Target Net Worth” means, on any date of determination, the sum of (i) $106,000,000
plus (ii) an amount determined on a cumulative basis equal to the sum of 50% of any positive
consolidated net income of Alon USA and its Consolidated Subsidiaries for each Fiscal Year ending
after December 31, 2004.

     “Taxes” has the meaning specified therefor in Section 2.12 hereof.

     “Terminals” means the real property interests described in Schedule E hereto and any
other terminal now or hereafter owned or leased by any Company.

     “Termination and Releases” has the meaning specified therefor in Section 9.08 (d)
hereof.

     “Termination Date” means January 1, 2010.

     “Termination Event” means (i) a Reportable Event with respect to any Employee Plan,
(ii) any event that causes the Borrower or any of its ERISA Affiliates to incur liability under
Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section
4971 or 4975 of the Internal Revenue Code, (iii) the filing of a notice of intent to terminate an
Employee Plan under Section 4041 of ERISA, (iv) the institution of proceedings by the Pension
Benefit Guaranty Corporation to terminate an Employee Plan, or (v) any other event or condition
that would constitute grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Employee Plan.

     “Total Commitment” means the sum of the amounts of the Lenders’ Revolving Credit
Commitments. The initial amount of the Total Commitment is $240,000,000.

     “Transaction Documents” means the Loan Documents, the License Agreement and the Lease
Documents.

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     “Transferors” means each of T&R Assets, Inc., a Texas corporation, FTPL, and Alon
Refining.

     “Unit Consideration” means 937,500 Class B Subordinated Units representing limited
partner interests issued by Holly in favor of Alon Logistics.

     “WC Collateral Agent” means IDB, or any successor or replacement agent in its capacity
as a collateral agent for the Lenders.

     Section 1.02 Accounting and Other Terms. Unless otherwise expressly provided herein,
each accounting term used herein shall have the meaning given it under GAAP applied on a basis
consistent with those used in preparing the Financial Statements. All terms used in this Agreement
which are defined in Article 9 of the Uniform Commercial Code in effect in the State of New York on
the date hereof and which are not otherwise defined herein shall have the same meanings herein as
set forth therein. The definitions of terms herein shall apply equally to the singular and plural
forms of the terms defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”. The word “will”
shall be construed to have the same meaning and effect as the word “shall”. Unless the context
requires otherwise, (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all references herein to
Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of,
and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any right or interest in or to assets
and properties of any kind whatsoever, whether real, personal or mixed and whether tangible or
intangible. References in this Agreement to “determination” by the Agent include good faith
estimates by the Agent (in the case of quantitative determinations) and good faith beliefs by the
Agent (in the case of qualitative determinations). In the event of any inconsistency between the
terms and provisions of this Agreement and the terms and provisions of any Security Document, the
terms and provisions of this Agreement shall control, provided that nothing herein shall be
deemed to affect the Liens granted under any Security Document or the perfection thereof.

     Section 1.03 Time References. Unless otherwise indicated herein, all references to
time of day refer to Eastern standard time or Eastern daylight saving time, as in effect in New
York City on such day. For purposes of the computation of a period of time from a specified date
to a later specified date, the word “from” means “from and including” and the words “to” and
“until” each means “to but excluding”, provided, however, that with respect to a
computation of fees or interest payable to the Agent, the Lenders or the L/C Issuer, such period
shall in any event consist of at least one full day.

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ARTICLE II

THE REVOLVING CREDIT LOANS

     Section 2.01 Revolving Credit Commitments.

          (a) Each Revolving Lender has made “Revolving Credit Loans” (as defined in the Existing
Revolving Credit Agreement) to the Borrower prior to the Effective Date, upon the effectiveness of
this Agreement, any such “Revolving Credit Loan” shall automatically be deemed to be a “Revolving
Credit Loan” to the Borrower by such Lender under this Agreement, and (ii) subject to the terms and
conditions and relying upon the representations and warranties set forth herein, each Lender
severally agrees to continue to make Revolving Credit Loans to the Borrower at any time and from
time to time until the Business Day preceding the Final Maturity Date, or until the earlier
reduction of its Revolving Credit Commitment to zero in accordance with the terms hereof, in an
aggregate principal amount of Revolving Credit Loans at any time outstanding not to exceed the
amount of such Lender’s Revolving Credit Commitment.

          (b) Notwithstanding the foregoing, the aggregate principal amount of the Revolving Credit
Loans outstanding at any time shall not exceed the lowest of (i) the difference between (A) Total
Commitment and (B) the aggregate Letter of Credit Obligations, (ii) the difference between (A) the
then current Borrowing Base, and (B) the aggregate Letter of Credit Obligations and (iii) the
difference between (A) the then current Facility Sublimit and (B) the aggregate Letter of Credit
Obligations.

          (c) Within the foregoing limits, the Borrower may borrow, repay and reborrow Revolving Credit
Loans, on or after the Effective Date and prior to the Final Maturity Date, subject to the terms,
provisions and limitations set forth herein.

     Section 2.02 Revolving Credit Loans. Except as otherwise provided in Section 2.05,
Revolving Credit Loans shall be made ratably by the Lenders in accordance with their respective
Revolving Credit Commitments.

     Section 2.03 Making the Revolving Credit Loans. The Borrower shall give the Agent
prior telephone notice (which notice, if requested by the Agent, must be promptly confirmed in
writing in substantially the form of Exhibit E hereto (a “Notice of Borrowing”)) (i) for
any Base Rate Loan not in excess of $30,000,000, not later than 12:00 noon (New York City time) one
Business Days prior to such proposed borrowing or (ii) for any Loan other than a Base Rate Loan not
in excess of $30,000,000, not later than 12:00 noon (New York City time) three Business Days prior
to such proposed borrowing, and, in each case, the Agent shall promptly deliver such Notice of
Borrowing to each Lender. Such Notice of Borrowing shall be irrevocable and shall specify the
principal amount of the proposed borrowing (which, in the case of a Eurodollar Loan, must be in a
minimum amount of $1,000,000 and in multiples of $500,000 in excess thereof), whether such
Revolving Credit Loan is requested to be a Base Rate Loan or a Eurodollar Loan and, in the case of
a Eurodollar Loan, the initial Interest Period for such Eurodollar Loan, the use of the proceeds of
such proposed Revolving Credit Loan, and the proposed borrowing date, which must be a Business Day,
and the Borrower shall be bound to make a borrowing in accordance therewith. The Agent may act
without liability upon the basis

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of written, telecopy or telephone notice believed by the Agent in good faith to be from the
Borrower (or from any officer thereof designated in writing to the Agent), and the Borrower hereby
waives the right to dispute the Agent’s record of the terms of any such telephonic Notice of
Borrowing.

     Section 2.04 Revolving Credit Notes; Repayment of Revolving Credit Loans.

          (a) Each Revolving Credit Loan made by a Lender shall be evidenced by a single Revolving
Credit Note, duly executed by the Borrower, dated the Effective Date, and delivered to and made
payable to the order of such Lender in a principal amount equal to its Revolving Credit Commitment
on such date.

          (b) The outstanding principal balance of each Revolving Credit Loan shall be due and payable
on the Final Maturity Date.

     Section 2.05 Funding and Settlement Procedures.

          (a) Except as otherwise provided in this Section 2.05, all Revolving Credit Loans under this
Agreement shall be made by the Lenders simultaneously and proportionately according to their Pro
Rata Shares of the Total Commitment, it being understood that no Lender shall be responsible for
any default by any other Lender in such other Lender’s obligation to make a Revolving Credit Loan
requested hereunder nor shall the Revolving Credit Commitment of any Lender to make the Revolving
Credit Loan requested be increased or decreased as a result of the default by any other Lender in
such other Lender’s obligation to make a Revolving Credit Loan requested hereunder.

          (b) Notwithstanding any other provision of this Agreement, in order to reduce the number of
fund transfers among the Borrower, the Lenders and the Agent, the Borrower, the Lenders and the
Agent agree that the Agent may, but shall not be obligated to, and the Borrower and the Lenders
hereby irrevocably authorize the Agent to, fund, on behalf of the Lenders, Revolving Credit Loans
pursuant to Sections 2.02 and 2.03, subject to the procedures for settlement set forth in
subsection 2.05(e); provided, however, that (A) the Agent shall in no event fund such Revolving
Credit Loan if the Agent shall have received written notice from the Required Lenders on the
Business Day prior to the date of the proposed Revolving Credit Loan that one or more of the
conditions precedent contained in Section 5.02 hereof will not be satisfied on the date of the
proposed Revolving Credit Loan and (B) the Agent shall not otherwise be required to determine that,
or take notice whether, the conditions precedent in Section 5.02 have been satisfied. If the Agent
elects not to fund a requested Revolving Credit Loan on behalf of the Lenders, promptly after
receipt of a Notice of Borrowing, the Agent shall so notify each Lender. If the Agent notifies the
Lenders that it will not fund a requested Revolving Credit Loan on behalf of the Lenders, each
Lender shall make its Pro Rata Share of the Revolving Credit Loan available to the Agent, in
immediately available funds, at the Payment Office no later than 2:00 p.m. (New York City time) on
the date of the proposed Revolving Credit Loan. The Agent will make the proceeds of such Revolving
Credit Loans available to the Borrower on the day of the proposed Revolving Credit Loan by causing
an amount, in immediately available funds, equal to the proceeds of all such Revolving Credit

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Loans received by the Agent at the Payment Office or the amount funded by the Agent on behalf
of the Lenders to be deposited in an account designated by the Borrower.

          (c) If the Agent has notified the Lenders that the Agent will not fund a particular Revolving
Credit Loan pursuant to subsection 2.05(b) on behalf of the Lenders, the Agent may assume that such
Lender has made such amount available to the Agent on such day and the Agent, in its sole and
absolute discretion, may, but shall not be obligated to, cause a corresponding amount to be made
available to the Borrower on such day. If, in such case, the Agent makes such corresponding amount
available to the Borrower and such corresponding amount is not in fact made available to the Agent
by such Lender, such Lender and the Borrower severally agree to repay to the Agent forthwith on
demand such corresponding amount together with interest thereon for each day from the date such
amount is made available to a Borrower until the date such amount is repaid to the Agent, at (A) in
the case of the Borrower, a rate per annum equal to the higher of the Federal Funds Rate and the
interest rate applicable thereto pursuant to Section 2.06 and (B) in the case of such Lender, at
the Federal Funds Rate for three Business Days and thereafter at the Prime Rate. If such Lender
shall repay to the Agent such corresponding amount, such amount so repaid shall constitute such
Lender’s Pro Rata Share of such Revolving Credit Loan.

          (d) Nothing in this Section 2.05 shall be deemed to relieve any Lender from its obligation to
fulfill its Revolving Credit Commitment hereunder or to prejudice any rights that the Agent or the
Borrower may have against any Lender as a result of any default by such Lender hereunder.

          (e) With respect to all periods for which the Agent, on behalf of the Lenders, has funded
Revolving Credit Loans pursuant to subsection 2.05(a), on the first Business Day after the last day
of each week, or such shorter period as the Agent may from time to time select (any such week or
shorter period being herein called a “Settlement Period”), the Agent shall notify each
Lender of the unpaid principal amount of the Revolving Credit Loans outstanding as of the last day
of the Settlement Period. In the event that such amount is greater than the unpaid principal
amount of the Revolving Credit Loans outstanding as of the last day of the immediately preceding
Settlement Period (or, if there has been no preceding Settlement Period, the amount of the
Revolving Credit Loans made on the date of such Lender’s initial funding), each Lender shall
promptly make available to the Agent such Lender’s Pro Rata Share of the difference in immediately
available funds. In the event that such amount is less than such unpaid principal amount, the
Agent shall promptly pay over to each other Lender such Lender’s Pro Rata Share of the difference
in immediately available funds. In addition, if the Agent shall so request at any time when a
Default or an Event of Default shall have occurred and be continuing, or any other event shall have
occurred as a result of which the Agent shall determine that it is desirable to present claims
against the Borrower for repayment, each Lender shall promptly remit to the Agent or, as the case
may be, the Agent shall promptly remit to each Lender, sufficient funds to adjust the interests of
the Lenders in the then outstanding Revolving Credit Loans to such an extent that, after giving
effect to such adjustment, each Lender’s interest in the then outstanding Revolving Credit Loans
will be equal to its Pro Rata Share thereof. The obligations of the Agent and each Lender under
this subsection 2.05(e) shall be absolute and unconditional. Each Lender shall only be entitled to
receive interest on its Pro Rata Share of the Revolving Credit Loans which have been funded by such
Lender.

30

 

          (f) In the event that any Lender fails to make any payment required to be made by it pursuant
to subsection 2.05(e), the Agent shall be entitled to recover such corresponding amount on demand
from such Lender together with interest thereon, for each day from the date such payment was due
until the date such amount is paid to the Agent, at the Federal Funds Rate for three Business Days
and thereafter at the Prime Rate. During the period in which such Lender has not paid such
corresponding amount to the Agent, notwithstanding anything to the contrary contained in this
Agreement or any other Loan Document, the amount so advanced by the Agent to the Borrower shall,
for all purposes hereof, be a Revolving Credit Loan made by the Agent for its own account. Upon
any such failure by a Lender to pay the Agent, the Agent shall promptly thereafter notify the
Borrower of such failure and the Borrower shall immediately pay such corresponding amount to the
Agent for its own account.

     Section 2.06 Interest.

          (a) Revolving Credit Loans. Each Revolving Credit Loan which is a Eurodollar Loan
shall bear interest on the principal amount thereof from time to time outstanding from the date of
such Revolving Credit Loan until such principal amount becomes due, at a rate per annum equal to
the Eurodollar Rate for the Interest Period in effect for such Revolving Credit Loan plus 1.50%.
Each Revolving Credit Loan which is a Base Rate Loan shall bear interest on the principal amount
thereof from time to time outstanding from the date of such Revolving Credit Loan until such
principal amount becomes due, at a rate per annum equal to the Base Rate.

          (b) Default Interest. Upon the occurrence and during the continuance of an Event of
Default described in Section 10.01 hereof, all outstanding principal of the Revolving Credit Loans
and all outstanding Reimbursement Obligations, all accrued interest (to the extent permitted by
law) which is not paid when due and all other outstanding Obligations shall bear interest until
such time as no such Event of Default exists at a fluctuating interest rate per annum equal at all
times to the Post-Default Rate.

          (c) Interest Payment. Interest on each Eurodollar Loan shall be payable in arrears on
the last day of each Interest Period of such Eurodollar Loan and, in the case of any Eurodollar
Loan with an Interest Period longer than three months, the day that interest would have been paid
if such Eurodollar Loan had an Interest Period of three months. Interest on each Base Rate Loan
shall be payable quarterly, in arrears, on the first day of each January, April, July and October,
commencing on the first day of the first such month following the making of such Base Rate Loan,
and at maturity (whether upon demand, by acceleration or otherwise). Interest at the Post-Default
Rate shall be payable on demand. The Borrower hereby authorizes the Agent to, and the Agent may,
from time to time, charge the Loan Account pursuant to Section 4.02 hereof with the amount of any
interest payment due hereunder. It is understood and agreed that on the Effective Date, all
interest on the “Revolving Credit Loans” (as defined in the Existing Revolving Credit Agreement)
that has accrued and is unpaid as of such date, shall continue to be due and owing (notwithstanding
the effectiveness of this Agreement) upon the effectiveness of this Agreement.

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          (d) General. All interest shall be computed on the basis of a year of 360 days for
the actual number of days, including the first day but excluding the last day, elapsed.

     Section 2.07 Reduction of Revolving Credit Commitment; Prepayment of Revolving Credit
Loans.

          (a) The Total Commitment shall not be reduced without the prior written consent of the
Borrower, the Agent and Bank Leumi, unless all of the Obligations are repaid in full and
the Total Commitment is terminated and reduced to zero in accordance with this Section 2.07(a).
Notwithstanding the first sentence of this Section 2.07(a), the Borrower may not repay the
Obligations in full and the Total Commitment may not be terminated by the Borrower unless in each
and every case the Agent and the Lenders receive at least three months’ prior written notice of
such repayment and termination (a “Termination Notice”), provided that (i) in no
event shall any such repayment and termination be effective prior to November 15, 2006, (ii) the
Termination Notice shall be revocable only during the first two months immediately following the
delivery of such notice (but not during the third month, it being understood that after such second
month the Termination Notice shall be irrevocable), provided further that if the
Borrower revokes a Termination Notice, the Borrower may not give any other Termination Notice for a
period of nine months following the date of such revoked Termination Notice, and (iii) the Borrower
may repay the Obligations in full and the Total Commitment may be terminated at any time
notwithstanding the failure of the Borrower to provide the Agent and the Lenders with a Termination
Notice if (A) an Event of Default shall have occurred and be continuing and (B) the Agent shall
have provided written notice of the existence of such Event of Default to the Borrower. Any
reductions of the Total Commitment which are so consented to shall be irrevocable and may not be
reinstated. Each such approved reduction shall reduce the Revolving Credit Commitment of each
Lender proportionately in accordance with its Pro Rata Share.

          (b) Subject to the terms and conditions contained in this Section 2.07, Section 2.10 and
elsewhere in this Agreement, the Borrower shall have the right to prepay, in whole or in part, the
Revolving Credit Loans.

          (c) (i) If at any time the Borrowing Base is less than the sum of the aggregate principal
amount of all outstanding Revolving Credit Loans plus the outstanding amount of all Letter of
Credit Obligations, the Borrower will (A) immediately give notice of such occurrence to the Agent
and (B) prepay the Revolving Credit Loans in an amount which will reduce the sum of the aggregate
principal amount of all outstanding Revolving Credit Loans plus Letter of Credit Obligations to an
amount less than or equal to the then current Borrowing Base. If at any time after the Borrower
has complied with the first sentence of this Section 2.07(c), the aggregate amount of Letter of
Credit Obligations is greater than the then current Borrowing Base, the Borrower shall provide cash
collateral to the Agent in the amount of such excess, which cash collateral shall be deposited in
an interest bearing account maintained by the Agent and, provided that no Event of Default shall
have occurred and be continuing, returned to the Borrower at such time as (x) the aggregate Letter
of Credit Obligations plus (y) the aggregate principal amount of all outstanding Revolving Credit
Loans no longer exceeds the then current Borrowing Base.

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          (ii) If at any time the aggregate principal amount of all outstanding Revolving Credit
Loans plus the outstanding amount of all Letter of Credit Obligations exceeds the then
current Facility Sublimit, the Borrower will (A) immediately give notice of such occurrence
to the Agent and (B) prepay the Revolving Credit Loans in an amount which will reduce the
sum of the aggregate principal amount of all outstanding Revolving Credit Loans plus the
Letter of Credit Obligations to an amount less than or equal to the then current Facility
Sublimit. If at any time after the Borrower has complied with the first sentence of this
Section 2.07(c)(ii), the aggregate amount of Letter of Credit Obligations is greater than
the then current Facility Sublimit, the Borrower shall provide cash collateral to the Agent
in the amount of such excess, which cash collateral shall be deposited in an interest
bearing account maintained by the Agent and, provided that no Event of Default shall have
occurred and be continuing, returned to the Borrower at such time as (x) the aggregate
Letter of Credit Obligations plus (y) the aggregate principal amount of all outstanding
Revolving Credit Loans no longer exceeds the then current Facility Sublimit.

          (d) Any prepayment made pursuant to this Section 2.07 shall be accompanied by accrued interest
on the principal amount being prepaid to the date of prepayment.

          (e) All funds deposited on a Business Day into the Agent Account or directly to the Payment
Office or any other account designated by the Agent to the Borrower shall be applied by the Agent
to the payment, in whole or in part, to the outstanding Revolving Credit Loans as of such Business
Day, subject to Section 4.02 hereof.

     Section 2.08 Fees.

          (a) Unused Line Fee. From and after the Effective Date until the Final Maturity Date,
the Borrower shall pay to the Agent for the account of the Lenders in accordance with the Lenders’
respective Pro Rata Shares and in immediately available funds, an unused line fee (the “Unused
Line Fee”) accruing at the rate of 15/100th of 1% (0.15%) per annum on the excess, if any, of
the Total Commitment over the then current Facility Sublimit. The Unused Line Fee shall be payable
quarterly in arrears on the first Business Day of each January, April, July and October, commencing
April 3, 2006 and shall be non-refundable.

          (b) Unused Loan Subfacility Fee. From and after the Effective Date until the Final
Maturity Date, the Borrower shall pay to the Agent for the account of the Lenders in accordance
with the Lenders’ respective Pro Rata Shares and in immediately available funds, an unused loan
subfacility fee (the “Unused Loan Subfacility Fee”) accruing at the rate of 3/10ths of 1%
(0.30%) per annum, on the excess, if any, of the then current Facility Sublimit over the sum of the
average amount of all Revolving Credit Loans and Letter of Credit Obligations outstanding from time
to time. Solely for the purposes of calculating the Unused Loan Subfacility Fee, the total amount
of Letters of Credit Obligations shall be determined based upon the maximum stated amount of each
Letter of Credit and each such Letter of Credit shall be deemed to be outstanding at the maximum
stated amount until the expiry date of each such Letter of Credit, irrespective of whether the
maximum stated amount was reduced or such Letter of Credit was terminated prior to the expiry date
of such Letter of Credit. The Unused Loan

33

 

Subfacility Fee shall be payable quarterly in arrears on the first Business Day of each
January, April, July and October, commencing April 3, 2006 and shall be non-refundable.

          (c) Letter of Credit Fees. From and after the Effective Date until all Letters of
Credit have been terminated, the Borrower shall pay to the Agent the Letter of Credit Fees set
forth in and to be paid in accordance with Section 3.03(b) hereof.

          (d) Field Examination Fee. The Borrower shall pay the reasonable out of pocket fees,
costs, expenses and charges of auditors, appraisers and professionals employed or retained by the
Agent to review, inspect, audit or monitor any of the Collateral prior to the Effective Date and
from time to time thereafter (the “Field Examination Fee”).

          (e) Closing Fee. On or prior to the Effective Date, the Borrower shall pay to the
Agent, for the account of the Lenders in accordance with the Lenders’ respective Pro Rata Shares
and in immediately available funds, a fee (the “Closing Fee”) equal to $480,000. The Closing Fee
shall be deemed fully earned on the Effective Date and non-refundable.

          (f) General. It is understood and agreed that on the Effective Date, all fees that
are payable on the “Obligations” (as defined in the Existing Revolving Credit Agreement) that have
accrued and are unpaid as of such date, shall continue to be due and owing (notwithstanding the
effectiveness of this Agreement) upon the effectiveness of this Agreement.

     Section 2.09 Eurodollar Rate Not Determinable; Illegality or Impropriety.

          (a) In the event, and on each occasion, that on or before the day on which the Eurodollar Rate
is to be determined for a borrowing that is to include Eurodollar Loans, the Agent has determined
in good faith that, or has been advised by the Required Lenders that, (i) the Eurodollar Rate
cannot be determined for any reason, (ii) the Eurodollar Rate will not adequately and fairly
reflect the cost of maintaining Eurodollar Loans or (iii) Dollar deposits in the principal amount
of the applicable Eurodollar Loans are not available in the Interbank Market, the Agent shall, as
soon as practicable thereafter, give written notice of such determination to the Borrower and the
Lenders. In the event of any such determination, any request by the Borrower for a Eurodollar Loan
pursuant to Section 2.03 shall, until, in the case of such a determination by the Required Lenders,
the Agent has been advised by the Required Lenders and the Agent has so advised the Borrower that,
or in the case of a determination by the Agent, the Agent has advised the Borrower and the other
Lenders that, the circumstances giving rise to such notice no longer exist, be deemed to be a
request for a Base Rate Loan. Each determination by the Agent and/or the Required Lenders
hereunder shall be conclusive and binding absent manifest error.

          (b) In the event that it shall be unlawful or improper for any Lender to make, maintain or
fund any Eurodollar Loan as contemplated by this Agreement, then such Lender shall forthwith give
notice thereof to the Agent and the Borrower describing such illegality or impropriety in
reasonable detail. Effective immediately upon the giving of such notice, the obligation of such
Lender to make Eurodollar Loans shall be suspended for the duration of such illegality or
impropriety and, if and when such illegality or impropriety ceases to exist, such suspension shall
cease, and such Lender shall notify the Agent and the Borrower.

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If any such change shall make it unlawful or improper for any Lender to maintain any
outstanding Eurodollar Loan as a Eurodollar Loan, such Lender shall, upon the happening of such
event, notify the Agent and the Borrower, and the Borrower shall immediately, or if permitted by
applicable law, rule, regulation, order, decree, interpretation, request or directive, at the end
of the then current Interest Period for such Eurodollar Loan, convert each such Eurodollar Loan
into a Base Rate Loan.

     Section 2.10 Indemnity.

          (a) The Borrower hereby indemnifies each Lender and each Lender’s Affiliate against any loss
or expense that such Lender or such Affiliate sustains or incurs (including, without limitation,
any loss or expense incurred by reason of the liquidation or reemployment of deposits or other
funds acquired by such Lender or such Affiliate to fund or maintain any Eurodollar Loan, and
including loss of anticipated profits) as a consequence of (i) any failure by the Borrower to
fulfill on the date of any borrowing hereunder the applicable conditions set forth in Article V,
(ii) any failure by the Borrower to borrow any Eurodollar Loan hereunder, to convert any Base Rate
Loan into a Eurodollar Loan or to continue a Eurodollar Loan as such after notice of such
borrowing, conversion or continuation has been given pursuant to Section 2.03 or Section 2.11
hereof, (iii) any payment, prepayment (mandatory or optional) or conversion of a Eurodollar Loan
required by any provision of this Agreement or otherwise made on a date other than the last day of
the Interest Period applicable thereto (including, without limitation, any transfer of Eurodollar
Loans required by the Borrower pursuant to Section 2.10(b) hereof or otherwise), (iv) any default
in payment or prepayment of the principal amount of any Eurodollar Loan or any part thereof or
interest accrued thereon, as and when due and payable (at the due date thereof, by notice of
prepayment or otherwise), or (v) the occurrence of any Event of Default, including, in each such
case, any loss (including, without limitation, loss of anticipated profits) or reasonable expense
sustained or incurred in liquidating or employing deposits from third parties acquired to effect or
maintain such Revolving Credit Loan or any part thereof as a Eurodollar Loan, provided that the
indemnity made under this Section 2.10 shall be limited to losses and expenses incurred on or prior
to the end of the relevant Interest Period. Such loss or reasonable expense shall include but not
be limited to an amount equal to the excess, if any, as reasonably determined by such Lender or
such Affiliate, of (i) the amount of interest that would otherwise have accrued on the principal
amount so prepaid or converted or continued or not borrowed or converted or continued for the
period from the date of such prepayment, conversion or continuation (or failure to borrow, convert
or continue) to the last day of the then current Interest Period for such Revolving Credit Loan at
the applicable rate of interest for such Revolving Credit Loan provided for herein, less (ii) the
amount of interest that otherwise would have accrued on such principal amount from the date of such
prepayment, conversion or continuation (or failure to borrow, convert or continue) until the end of
the then current Interest Period at a rate per annum equal to the Eurodollar Rate for such period
(as reasonably determined by the Agent). A certificate of any Lender setting forth in reasonable
detail any amount or amounts that such Lender or such Lender’s Affiliate is entitled to receive
pursuant to this Section 2.10 and the basis for the determination of such amount or amounts shall
be delivered to the Borrower and shall be conclusive and binding absent manifest error.

          (b) Notwithstanding paragraph (a) of this Section 2.10, the Agent will use reasonable efforts
to minimize or reduce any such loss or expense resulting from the

35

 

mandatory prepayments required by Section 2.07 of this Agreement by (i) applying all payments
and prepayments to Revolving Credit Loans bearing interest at the Base Rate prior to any
application of payments to Revolving Credit Loans bearing interest at the Eurodollar Rate and (ii)
after all Base Rate Loans have been paid in full, calculating any such loss or expense based upon
the net decrease in Eurodollar Loans on a day after giving effect to all prepayments and all
Revolving Credit Loans made on such day.

     Section 2.11 Continuation and Conversion of Revolving Credit Loans.

          (a) Subject to Section 2.09 hereof, the Borrower shall have the right, at any time, on three
(3) Business Days’ prior irrevocable written or telecopy notice to the Agent, to continue any
Eurodollar Loan, or any portion thereof, into a subsequent Interest Period or to convert any Base
Rate Loan or portion thereof into a Eurodollar Loan, or on one (1) Business Day’s prior irrevocable
written or telecopy notice to the Agent, to convert any Eurodollar Loan or portion thereof into a
Base Rate Loan, subject to the following:

          (i) no Eurodollar Loan may be continued as such and no Base Rate Loan may be converted
into a Eurodollar Loan, when any Event of Default or Default shall have occurred and be
continuing at such time;

          (ii) in the case of a continuation of a Eurodollar Loan as such or a conversion of a
Base Rate Loan into a Eurodollar Loan, the aggregate principal amount of such Eurodollar
Loan shall not be less than $1,000,000 and in multiples of $500,000 if in excess thereof;

          (iii) in the case of a conversion from a Eurodollar Loan to a Base Rate Loan accrued
interest on the Revolving Credit Loan (or portion thereof) being converted shall be paid by
the Borrower at the time of conversion;

          (iv) any portion of a Revolving Credit Loan maturing or required to be repaid in less
than one month may not be converted into or continued as a Eurodollar Loan; and

          (v) if any conversion of a Eurodollar Loan shall be effected on a day other than the
last day of an Interest Period, the Borrower shall reimburse each Lender on demand for any
loss incurred or to be incurred by it in the reemployment of the funds released by such
conversion as provided in Section 2.10 hereof.

In the event that the Borrower shall not give notice to continue any Eurodollar Loan into a
subsequent Interest Period, such Revolving Credit Loan shall automatically become a Base Rate Loan
at the expiration of the then current Interest Period, subject to the other provisions of this
Agreement.

     Section 2.12 Taxes.

          (a) All payments made by the Borrower hereunder, under the Revolving Credit Notes or under any
other Loan Document shall be made without set-off, counterclaim, deduction or other defense. All
such payments shall be made free and clear of and

36

 

without deduction for any present or future income, franchise, sales, use, excise, stamp or
other taxes, levies, imposts, deductions, charges, fees, withholdings, restrictions or conditions
of any nature now or hereafter imposed, levied, collected, withheld or assessed by any jurisdiction
(whether pursuant to United States Federal, state, local or foreign law) or by any political
subdivision or taxing authority thereof or therein, and all interest, penalties or similar
liabilities, excluding taxes on the net income of, and branch profit taxes of, and franchise taxes
imposed on, any Lender, the Agent or the L/C Issuer imposed by the jurisdiction in which such
Lender, the Agent or the L/C Issuer is organized or any political subdivision thereof or taxing
authority thereof or any jurisdiction in which such Person’s principal office or relevant lending
office is located or any political subdivision thereof or taxing authority thereof (such
nonexcluded taxes being hereinafter collectively referred to as “Taxes”). If the Borrower
is required by law to deduct or to withhold any Taxes from or in respect of any amount payable
hereunder, (i) the amount so payable shall be increased to the extent necessary so that after
making all required deductions and withholdings (including Taxes on amounts payable to the Lenders,
the Agent or the L/C Issuer pursuant to this sentence) the Lenders, the Agent or the L/C Issuer
receive an amount equal to the sum they would have received had no such deductions or withholdings
been made, (ii) the Borrower shall make such deductions or withholdings, and (iii) the Borrower
shall pay the full amount deducted or withheld to the relevant taxation authority in accordance
with applicable law; provided, however, that if a Lender assigns its rights pursuant to Section
12.08 hereof and such assignment would (but for this proviso) cause the assignee Lender,
immediately after such assignment, to be entitled to receive any greater payments under this
Section 2.12 in respect of United States Federal, state, local or foreign withholding taxes than
would have been made but for such assignment, then such assignee Lender shall not be entitled to
receive any such greater payments than such assigning Lender would have been entitled to receive
with respect to the rights assigned if such assignment had not taken place unless (A) such
assignment had been at the request of, or with the consent of, the Borrower or (B) an Event of
Default has occurred and is continuing at the time of such assignment. Whenever any Taxes are
payable by the Borrower, as promptly as possible thereafter, the Borrower shall send the Lenders,
the L/C Issuer and the Agent an official receipt (or, if an official receipt is not available, such
other documentation as shall be reasonably satisfactory to the Lenders, L/C Issuer or the Agent, as
the case may be) showing payment. In addition, the Borrower agrees to pay any present or future
taxes, charges or similar levies which arise from any payment made hereunder or from the execution,
delivery, performance, recordation or filing of, or otherwise with respect to, this Agreement, the
Revolving Credit Notes, the Letters of Credit or any other Loan Document, except as provided above
with respect to taxes on the net income of, and branch profit taxes of, and franchise taxes imposed
on, any Lender, the Agent or the L/C Issuer (such nonexcluded taxes being hereinafter collectively
referred to as “Other Taxes”).

          (b) The Borrower will indemnify the Lenders, the Agent and the L/C Issuer for the amount of
Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes imposed by any
jurisdiction on amounts payable under this Section 2.12) paid by any Lender, the Agent or the L/C
Issuer and any liability (including penalties, interest and expenses for nonpayment, late payment
or otherwise) arising therefrom or with respect thereto, whether or not such Taxes or Other Taxes
were correctly or legally asserted. This indemnification shall be paid within 30 days from the
date on which such Lender, the Agent or such L/C Issuer makes written demand which demand shall
identify the nature and amount of Taxes or Other Taxes for which indemnification is being sought
and the basis of the claim.

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          (c) Each Lender that is organized in a jurisdiction other than the United States, a State
thereof or the District of Columbia hereby agrees that:

          (i) it shall, no later than the Effective Date (or, in the case of a Lender which
becomes a party hereto pursuant to Section 12.08 hereof after the Effective Date, the date
upon which such Lender becomes a party hereto) deliver to the Borrower and the Agent two
accurate, complete and signed originals of U.S. Internal Revenue Service Form W-8BEN or Form
W-8ECI or successor form, in each case indicating that such Lender is on the date of
delivery thereof entitled to receive payments of principal and interest for the account of
its lending office under this Agreement free from withholding of United States Federal
income tax;

          (ii) if at any time such Lender changes its lending office or offices or selects an
additional lending office it shall, at the same time or reasonably promptly thereafter,
deliver to the Borrower through the Agent in replacement for, or in addition to, the forms
previously delivered by it hereunder, if such changed or additional lending office is
located in the United States, two accurate, complete and signed originals of such Form
W-8BEN, Form W-8ECI or successor form, in each case indicating that such Lender is on the
date of delivery thereof entitled to receive payments of principal and interest for the
account of such changed or additional lending office under this Agreement free from
withholding of United States Federal income tax; and

          (iii) it shall, promptly upon the Borrower’s reasonable request to that effect, deliver
to the Borrower such other forms or similar documentation as may be required from time to
time by any applicable law, treaty, rule or regulation in order to establish such Lender’s
tax status for withholding purposes.

          (d) For any period with respect to which a Lender has failed to provide the Borrower with the
appropriate form described in Section 2.12(c) (other than in the case where such Lender is not, or
is no longer, legally entitled to deliver such form), such Lender shall not be entitled to payment
from the Borrower without deduction pursuant to Section 2.12(a) or indemnification by the Borrower
pursuant to Section 2.12(b) to the extent that such payment or indemnification obligation would
have been reduced if the applicable form had been delivered to the Borrower; provided, however,
that should such Lender become subject to Taxes because of its failure to deliver a form required
hereunder, the Borrower shall take such steps as the Lender shall reasonably request to assist such
Lender to recover such Taxes.

          (e) If the Borrower fails to perform its obligations under this Section 2.12, the Borrower
shall indemnify the Lenders, the Agent and the L/C Issuer for any taxes, interest or penalties that
may become payable as a result of any such failure.

          (f) Any Lender that is organized in a jurisdiction other than the United States, a State
thereof or the District of Columbia claiming any indemnity payment or additional amounts payable
pursuant to this Section 2.12 shall use reasonable efforts (consistent with legal, regulatory and
policy considerations of such Lender) to file any certificate or document reasonably requested in
writing by the Borrower or to change the jurisdiction of its applicable lending office if the
making of such a filing or change would avoid the need for or reduce the

38

 

amount of any such indemnity payment or additional amounts which may thereafter accrue and
would not, in the sole and absolute determination of such Lender, be otherwise disadvantageous to
such Lender.

     Section 2.13 Increases to the Facility Sublimit. Upon the request of the Borrower,
subject to the conditions set forth below, the Facility Sublimit may be adjusted from time to time
as a result of either an Oil Price Adjustment or a Production Increase (as each such term is
defined below), as follows:

          (a) Oil Price Adjustment. If the Blended West Texas Crude Oil Price equals an amount
set forth in the relevant column below, then, subject to the other provisions of this Section 2.13,
the then current Facility Sublimit may be increased by an amount equal to the amount set forth
below opposite such price per barrel (an “Oil Price Adjustment”):

	 	 	 	 	 
	Blended West Texas Crude Oil Price:	Oil Price Adjustment:
	over $60 and up to and including $65

	 	$	20,000,000	 
	over $65 and up to and including $70

	 	$	40,000,000	 
	over $70 and up to and including $75

	 	$	60,000,000	 
	over $75

	 	$	80,000,000	 

Notwithstanding the foregoing, in no event shall an Oil Price Adjustment cause the Facility
Sublimit to exceed the Total Commitment. The amount of the Facility Sublimit will be adjusted
based upon such Oil Price Adjustment, with effect from the first Business Day after the date of the
delivery by the Borrower to the Agent of a Notice of Facility Sublimit Increase (in accordance with
and subject to Section 2.13(c) below). No more than one Notice of Facility Sublimit Increase may
be delivered on any day.

          (b) Production Increase. If Alon USA’s and its Consolidated Subsidiaries’ average
throughput capacity to process crude oil and blendstocks has permanently increased from the then
current Base Production Level by at least 2,500 barrels per day (a “Production Increase”),
the then current Facility Sublimit amount may be permanently increased (subject to Section 2.13(c)
below) in increments of $10,000,000 (to an amount not to exceed the Total Commitment), with respect
to each such Production Increase. The amount of the Facility Sublimit will permanently increase
with effect from the first Business Day after the date of delivery by the Borrower to the Agent of
a Notice of Facility Sublimit Increase (in accordance with and subject to Section 2.13(c) below).
No more than one Notice of Facility Sublimit Increase may be delivered on any day.

          (c) Making a Request for a Facility Sublimit Increase. At any time the Borrower
wishes to request an increase to the Facility Sublimit based upon either an Oil Price Adjustment or
a Production Increase, it shall give the Agent prior irrevocable notice, in substantially the form
of Exhibit I hereto (a “Notice of Facility Sublimit Increase”), and the Agent shall
promptly deliver a copy of any such Notice of Facility Sublimit Increase to each Lender. Any such
Notice of Facility Sublimit Increase shall specify (i) the amount of the new proposed Facility
Sublimit, (ii) whether the increase in the Facility Sublimit is a result of an Oil

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Price Adjustment or a Production Increase, and (iii) in the case of an Oil Price Adjustment,
the initial period for which the increase in the Facility Sublimit is to take effect, such period
may not be less than the Minimum Oil Increase Period or more than six fiscal months following the
date of the Notice of Facility Sublimit Increase (an “Initial Oil Increase Period”). Each
notice of Facility Sublimit Increase shall be accompanied by a certificate of a Responsible Officer
of the Borrower, certifying (A) in the case of an Oil Price Adjustment, as to the then current
Blended West Texas Crude Oil Price as of the date of the Notice of Facility Sublimit Increase and
(B) in the case of a Production Increase, that Alon USA’s and its Consolidated Subsidiaries’
average throughput capacity to process crude oil and blendstocks has permanently increased by at
least 2,500 barrels per day over the Base Production Level, and to the extent in excess thereof,
the amount of any such increase. The Agent may act without liability upon the basis of such
written notice believed by the Agent in good faith to be from the Borrower (or from any officer
thereof designated in writing to the Agent), and the Borrower hereby waives the right to dispute
the Agent’s record of the terms of any such Notice of Facility Sublimit Increase.

          (d) Extension of an Oil Increase Period. In the case of an Oil Price Adjustment to
the Facility Sublimit, so long as the Blended West Texas Crude Oil Price has not decreased such
that the then current Oil Price Adjustment calculated in accordance with Section 2.13(a) can no
longer continue in effect after the expiration of the then current Oil Increase Period (as defined
below), the Borrower shall have the right (but not the obligation), upon delivery of prior
irrevocable written notice to the Agent in substantially the form of Exhibit J hereto (an
“Extension Notice”), at any time prior to the expiration of the then current Oil Increase
Period, as defined below, to extend the effect of any such increase in the Facility Sublimit for
any subsequent period to be determined by the Borrower, but in any event not to exceed six fiscal
months from the date of the Extension Notice, and not less than the Minimum Oil Increase Period (a
“Subsequent Oil Increase Period”, together with an Initial Oil Increase Period, an “Oil
Increase Period”). Any such Extension Notice shall (i) specify the duration of any Subsequent
Oil Increase Period and (ii) be accompanied by a certificate of a Responsible Officer of the
Borrower, certifying as to the then current Blended West Texas Crude Oil Price as at the date of
such continuation notice. In the event that the Borrower shall not give notice to extend the
effect of any then current Oil Price Adjustment, the Facility Sublimit shall automatically decrease
at the expiration of the then current Oil Increase Period to the Facility Floor then in effect;
provided however, that if the automatic decrease at the expiration of the then
current Oil Increase Period would cause the Facility Sublimit to decrease to an amount which would
cause the aggregate outstanding amount of all Letter of Credit Obligations to exceed the Facility
Floor, the Facility Sublimit shall not automatically decrease until the expiration of all of the
Letter of Credit Obligations that were outstanding on the date of the expiration of the last Oil
Increase Period; provided further that such stay of the automatic decrease in the Facility Sublimit
shall not extend beyond six months from the expiration of the then current Oil Price Period.

ARTICLE III

LETTERS OF CREDIT

     Section 3.01 Letters of Credit.

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          (a) IDB, as an L/C Issuer, has established and issued, at the request of and on behalf of the
Borrower, “Letters of Credit” (as defined in the Existing Revolving Credit Agreement) prior to the
Effective Date, some of which remain outstanding on the Effective Date (immediately prior to the
effectiveness of this Agreement). Upon the effectiveness of this Agreement, each such “Letter of
Credit” shall automatically be deemed to be a “Letter of Credit” issued by IDB, as an L/C Issuer,
on behalf of the Borrower under this Agreement. The Borrower has requested the L/C Issuer to
continue to establish and open, from time to time, documentary and standby letters of credit, which
shall not have expiration dates that exceed 364 days (or such longer period as may be approved by
the Agent) from the date of issuance (the “Letters of Credit”), and each L/C Issuer has
agreed to do so, subject to the terms hereof and each Letter of Credit Application (as hereinafter
defined). The Borrower will be the account party for each application for a Letter of Credit,
which shall be substantially in the form of Exhibit H hereto or on a computer transmission system
approved by the applicable L/C Issuer or such other written form or written transmission system as
may from time to time be approved by the applicable L/C Issuer, and shall be duly completed in a
manner reasonably acceptable to the applicable L/C Issuer, together with such other certificates,
agreements, documents and other papers and information as the applicable L/C Issuer may reasonably
request (the “Letter of Credit Application”). In the event of any conflict between the
terms of the Letter of Credit Application and this Agreement, unless otherwise expressly provided
herein, the terms of this Agreement shall control.

          (b) The aggregate Letter of Credit Obligations shall not exceed the lower of (i) the
difference between (A) the Total Commitment and (B) the aggregate principal amount of Revolving
Credit Loans then outstanding, (ii) the difference between (A) the aggregate Borrowing Base and (B)
the aggregate principal amount of the Revolving Credit Loans then outstanding and (iii) the
difference between (A) the then current Facility Sublimit and (B) the aggregate principal amount of
Revolving Credit Loans. The terms and conditions of all Letters of Credit and all changes or
modifications thereof by the Borrower and/or the applicable L/C Issuer shall in all respects be
subject to the prior approval of the Agent in the reasonable exercise of its sole and absolute
discretion; provided, however, that (i) the expiry date of all Letters of Credit
shall be no later than fifteen days prior to the Final Maturity Date unless, on or prior to fifteen
days prior to the Final Maturity Date either (A) such Letters of Credit shall be cash
collateralized in an amount equal to 105% of the face amount of such Letters of Credit by the
deposit of cash in such amount in an account under the sole and exclusive control of the Agent for
the benefit of the Agent and/or the L/C Issuers (the “Letter of Credit Collateral Account”)
or (B) the Borrower shall provide the Agent and the Lenders with an indemnification, in form and
substance reasonably satisfactory to the Agent, from a commercial bank or other financial
institution acceptable to the Agent for any Letter of Credit Obligations with respect to such
Letters of Credit and (ii) the Letters of Credit and all documentation in connection therewith
shall be in form and substance reasonably satisfactory to the Agent and the applicable L/C Issuer.

          (c) The Agent shall have the right, without notice to the Borrower, to charge the Loan Account
with the amount of any and all indebtedness, liabilities and obligations of any kind due and
payable under this Agreement (including Reimbursement Obligations, indemnification for breakage
costs, capital adequacy and reserve requirement charges due and payable under this Agreement)
incurred by an L/C Issuer with respect to a Letter of Credit. Any

41

 

amount charged to the Loan Account shall be deemed a Revolving Credit Loan hereunder made by
the Lenders to the Borrower, funded by the Agent on behalf of the Lenders and subject to Section
2.05 of this Agreement. Any charges, fees, commissions, costs and expenses charged by an L/C
Issuer in connection with or arising out of Letters of Credit or transactions relating thereto
pursuant to the application and agreement for letter of credit or other related agreements or
documents executed by the Borrower in connection with any such Letter of Credit will be charged by
the Agent to the Loan Account in full and, when charged, shall be conclusive and binding on the
Borrower absent manifest error. Each of the Lenders and the Borrower agrees that the Agent shall
have the right to make such charges regardless of whether any Event of Default or Default shall
have occurred and be continuing or whether any of the conditions precedent in Section 5.02 have
been satisfied.

          (d) The Borrower unconditionally indemnifies the Agent, each L/C Issuer and each Lender and
agrees to hold the Agent, each L/C Issuer and each Lender harmless from any and all loss, claim or
liability incurred by the Agent, any L/C Issuer or any Lender arising from any transactions or
occurrences relating to Letters of Credit, any drafts or acceptances thereunder, the Collateral
relating thereto, and all Obligations in respect thereof, including any such loss or claim due to
any action taken by an L/C Issuer, other than for any such loss, claim or liability arising out of
the gross negligence or willful misconduct of the Agent, such L/C Issuer or such Lender as
determined by a final judgment of a court of competent jurisdiction.

          (e) None of the Agent, the Lenders or the L/C Issuers shall be responsible for the existence,
character, quality, quantity, condition, value or delivery of the fuel, fuel by-products or other
goods purporting to be represented by any documents; any difference or variation in the character,
quality, quantity, condition, value or delivery of such goods from that expressed in the documents;
the validity, sufficiency or genuineness of any documents or of any endorsements thereof even if
such documents should in fact prove to be in any or all respects invalid, insufficient, fraudulent
or forged; the time, place, manner or order in which shipment is made; partial or incomplete
shipments, or failure or omission to ship any or all of such goods referred to in the Letters of
Credit or documents; any deviation from instructions, delay, default, or fraud by the shipper
and/or anyone else in connection with the Collateral or the shipping thereof; or any breach of
contract between the shipper or vendors and the Borrower. Furthermore, without limiting any of the
foregoing, none of the Agent, the L/C Issuers and the Lenders shall be responsible for any act or
omission with respect to or in connection with any goods covered by any Letter of Credit.

          (f) The Borrower agrees that any action taken by the Agent, any L/C Issuer or any Lender, if
taken in good faith, under or in connection with the Letters of Credit, the drafts or acceptances,
the guarantees or the Collateral, shall be binding on the Borrower and shall not put the Agent, the
L/C Issuers or the Lenders in any resulting liability to the Borrower. In furtherance of the
foregoing, each L/C Issuer shall have the full right and authority to clear and resolve any
questions of non-compliance of documents; to give any instructions as to acceptance or rejection of
any documents or goods; to execute any and all steamship or airways guaranties (and applications
therefor), indemnities or delivery orders; to grant any extensions of the maturity of, time of
payment for, or time of presentation of, any drafts, acceptances or documents; and to agree to any
amendments, renewals, extensions, modifications, changes or

42

 

cancellations of any of the terms or conditions of any of the applications, Letters of Credit,
drafts or acceptances, all in such L/C Issuer’s sole name, without any notice to or any consent
from the Borrower or any Lender. Each L/C Issuer shall use reasonable efforts to consult with the
Borrower before taking any action pursuant to this Section 3.01(f).

          (g) Without the applicable L/C Issuer’s express consent, the Borrower agrees: (i) not to
execute any and all applications for steamship or airway guaranties, indemnities or delivery
orders; to grant any extensions of the maturity of, time of payment for, or time of presentation
of, any drafts, acceptances or documents; or to agree to any amendments, renewals, extensions,
modifications, changes or cancellations of any of the terms or conditions of any of the
applications, Letters of Credit, drafts or Letter of Credit Applications; and (ii) after the
occurrence of an Event of Default, not to (A) clear and resolve any questions of non-compliance of
documents, or (B) give any instructions as to acceptances or rejection of any documents or goods.

          (h) The Borrower agrees that (i) any necessary and material import, export or other license or
certificate for the import or handling of Inventory will have been promptly procured; and (ii) all
foreign and domestic material governmental laws and regulations in regard to the shipment and
importation of Inventory or the financing thereof will have been promptly and fully complied with,
in each case, where the failure to obtain such certificate or license or the failure to comply with
such laws and regulations would have a Material Adverse Effect; and any certificates in that regard
that the Agent or any L/C Issuer may at any time reasonably request will be promptly furnished. In
this connection, the Borrower warrants and represents that all shipments made under any Letters of
Credit are in accordance with all material laws and regulations of the countries in which the
shipments originate and terminate, and are not prohibited by any such laws and regulations. As
between the Borrower, on the one hand, and the Agent, the Lenders and the L/C Issuers, on the other
hand, the Borrower assumes all risk, liability and responsibility for, and agrees to pay and
discharge, all present and future local, state, federal or foreign taxes, duties, or levies. As
between the Borrower, on the one hand, and the Agent, the Lenders and the L/C Issuers, on the other
hand, any embargo, restriction, laws, customs or regulations of any country, state, city, or other
political subdivision, where such Inventory is or may be located, or wherein payments are to be
made, or wherein drafts may be drawn, negotiated, accepted, or paid, shall be solely the Borrower’s
risk, liability and responsibility.

          (i) Upon any payments made to an L/C Issuer by the Agent or the Lenders as reimbursement for
payments made by such L/C Issuer under any Letter of Credit, the Agent or the Lenders, as the case
may be, shall, without prejudice to their rights under this Agreement (including that such
unreimbursed amounts shall constitute Revolving Credit Loans hereunder), acquire by subrogation,
any rights, remedies, duties or obligations granted or undertaken by the Borrower in favor of such
L/C Issuer in any application for Letters of Credit, any standing agreement relating to Letters of
Credit or otherwise, all of which shall be deemed to have been granted to the Agent and the Lenders
and apply in all respects to the Agent and the Lenders and shall be in addition to any rights,
remedies, duties or obligations contained herein.

     Section 3.02 Participations.

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          (a) Participations in Bank Leumi Letters of Credit.

          (i) Purchase of Participations by Agent in Bank Leumi Letters of Credit.
Immediately upon issuance by Bank Leumi, as L/C Issuer, of any Letter of Credit pursuant to
this Agreement, the Agent shall be deemed to have irrevocably and unconditionally purchased
and received from Bank Leumi, as L/C Issuer, without recourse or warranty, an undivided
interest and participation in all obligations of Bank Leumi, as L/C Issuer, in such Letter
of Credit (including, without limitation, all Reimbursement Obligations of the Borrower with
respect thereto pursuant to the Letters of Credit, the Letters of Credit Applications or
otherwise).

          (ii) Sharing of Payments. In the event that Bank Leumi, as L/C Issuer, makes
any payment in respect of a Letter of Credit and the Borrower shall not have repaid such
amount to the Agent for the account of the L/C Issuer, the Agent shall charge the Loan
Account in the amount of the Reimbursement Obligation, in accordance with Sections 3.01(c)
and 4.02.

          (iii) Obligations Irrevocable. The obligations of the Agent to make payments
for the account of the L/C Issuer with respect to a Letter of Credit issued by Bank Leumi,
as L/C Issuer, shall be irrevocable, without any qualification or exception whatsoever and
shall be made in accordance with the terms and conditions of this Agreement under all
circumstances, including, without limitation, any of the following circumstances:

                         (A) any lack of validity or enforceability of this Agreement or any of the other Loan
Documents;

                         (B) the existence of any claim, setoff, defense or other right which the Borrower may have at
any time against a beneficiary named in such Letter of Credit or any transferee of such Letter of
Credit (or any Person for whom any such transferee may be acting), the Agent, Bank Leumi, as L/C
Issuer, any Lender, or any other Person, whether in connection with this Agreement, such Letter of
Credit, the transactions contemplated herein or any unrelated transactions (including any
underlying transactions between the Borrower or any other party and the beneficiary named in such
Letter of Credit);

                         (C) any draft, certificate or any other document presented under such Letter of Credit proving
to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being
untrue or inaccurate in any respect;

                         (D) the surrender or impairment of any security for the performance or observance of any of
the terms of any of the Loan Documents;

                         (E) any
failure by Bank Leumi, as L/C Issuer, or the Agent to provide any
notices required pursuant to this Agreement relating to such Letter
of Credit;

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                         (F) any payment by Bank Leumi, as L/C Issuer, under any of the Letters of Credit against
presentation of a draft or certificate which does not comply with the terms of such Letter of
Credit; or

                         (G) the occurrence of any Default or Event of Default.

          (b) Participations in Obligations to Agent in Respect of Bank Leumi Letters of Credit.

          (i) Purchase of Participations by Lenders in Respect of Bank Leumi Letters of
Credit. Immediately upon issuance by Bank Leumi, as L/C Issuer, of any Letter of Credit
pursuant to this Agreement, each Lender shall be deemed to have irrevocably and
unconditionally purchased and received from the Agent, without recourse or warranty, an
undivided interest and participation, to the extent of such Lender’s Pro Rata Share, in all
obligations of the Agent to reimburse Bank Leumi, as L/C Issuer, in such Letter of Credit
(including, without limitation, all Reimbursement Obligations of the Borrower with respect
thereto pursuant to the Letters of Credit, the Letters of Credit Applications or otherwise).

          (ii) Sharing of Payments. In the event that the Agent makes any payment to
Bank Leumi, as L/C Issuer, in respect of a Letter of Credit pursuant to Section 3.02(a), the
Agent shall charge the Loan Account in the amount of the Reimbursement Obligation, in
accordance with Sections 3.01(c) and 4.02.

          (iii) Obligations Irrevocable. The obligations of a Lender to make payments to
the Agent (to reimburse the Agent for payments made to Bank Leumi with respect to a Letter
of Credit issued by Bank Leumi, as L/C Issuer), shall be irrevocable, without any
qualification or exception whatsoever and shall be made in accordance with the terms and
conditions of this Agreement under all circumstances, including, without limitation, any of
the following circumstances:

                         (A) any lack of validity or enforceability of this Agreement or any of the other Loan
Documents;

                         (B) the existence of any claim, setoff, defense or other right which the Borrower may have at
any time against a beneficiary named in such Letter of Credit or any transferee of such Letter of
Credit (or any Person for whom any such transferee may be acting), the Agent, Bank Leumi, as L/C
Issuer, any Lender, or any other Person, whether in connection with this Agreement, such Letter of
Credit, the transactions contemplated herein or any unrelated transactions (including any
underlying transactions between the Borrower or any other party and the beneficiary named in such
Letter of Credit);

                         (C) any draft, certificate or any other document presented under such Letter of Credit proving
to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being
untrue or inaccurate in any respect;

                         (D) the surrender or impairment of any security for the performance or observance of any of
the terms of any of the Loan Documents;

45

 

                         (E) any failure by Bank Leumi, as L/C Issuer, or the Agent to provide any notices required
pursuant to this Agreement relating to such Letter of Credit;

                         (F) any payment by Bank Leumi, as L/C Issuer, under any of the Letters of Credit against
presentation of a draft or certificate which does not comply with the terms of such Letter of
Credit; or

                         (G) the occurrence of any Default or Event of Default.

               (c) Participations in IDB Letters of Credit.

               (i) Purchase of Participations in IDB Letters of Credit. Immediately upon
issuance by IDB, as L/C Issuer, of any Letter of Credit pursuant to this Agreement, each
Lender shall be deemed to have irrevocably and unconditionally purchased and received from
IDB, as L/C Issuer, without recourse or warranty, an undivided interest and participation,
to the extent of such Lender’s Pro Rata Share, in all obligations of IDB, as L/C Issuer, in
such Letter of Credit (including, without limitation, all Reimbursement Obligations of the
Borrower with respect thereto pursuant to the Letters of Credit, the Letters of Credit
Applications or otherwise).

               (ii) Sharing of Payments. In the event that IDB, as L/C Issuer, makes any
payment in respect of a Letter of Credit and the Borrower shall not have repaid such amount
to the Agent for the account of IDB, as L/C Issuer, the Agent shall charge the Loan Account
in the amount of the Reimbursement Obligation, in accordance with Sections 3.01(c) and 4.02.

               (iii) Obligations Irrevocable. The obligations of a Lender to make payments to
the Agent for the account of IDB, as L/C Issuer, with respect to a Letter of Credit shall be
irrevocable, without any qualification or exception whatsoever and shall be made in
accordance with the terms and conditions of this Agreement under all circumstances,
including, without limitation, any of the following circumstances:

                         (A) any lack of validity or enforceability of this Agreement or any of the other Loan
Documents;

                         (B) the existence of any claim, setoff, defense or other right which the Borrower may have at
any time against a beneficiary named in such Letter of Credit or any transferee of such Letter of
Credit (or any Person for whom any such transferee may be acting), the Agent, IDB, as L/C Issuer,
any Lender, or any other Person, whether in connection with this Agreement, such Letter of Credit,
the transactions contemplated herein or any unrelated transactions (including any underlying
transactions between the Borrower or any other party and the beneficiary named in such Letter of
Credit);

                         (C) any draft, certificate or any other document presented under such Letter of Credit proving
to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being
untrue or inaccurate in any respect;

46

 

                         (D) the surrender or impairment of any security for the performance or observance of any of
the terms of any of the Loan Documents;

                         (E) any failure by IDB, as L/C Issuer, or the Agent to provide any notices required pursuant
to this Agreement relating to such Letter of Credit;

                         (F) any payment by IDB, as L/C Issuer, under any of the Letters of Credit against presentation
of a draft or certificate which does not comply with the terms of such Letter of Credit; or

                         (G) the occurrence of any Default or Event of Default.

          Section 3.03 Issuance of Letters of Credit; Fees.

               (a) Request for Issuance. The Borrower may from time to time, upon notice not later
than 12:00 noon, New York City time, at least three Business Days in advance, request an L/C Issuer
to establish or open a Letter of Credit by delivering to the Agent, with a copy to such L/C Issuer,
a letter of credit application, together with any necessary related documents. The Agent shall
direct the L/C Issuers not to issue a Letter of Credit if the Agent shall have received written
notice from the Required Lenders on the Business Day immediately preceding the proposed issuance
date for such Letter of Credit that one or more of the conditions precedent in Section 5.02 will
not have been satisfied on such date, and neither any L/C Issuer nor the Agent shall otherwise be
required to determine that, or take notice whether, the conditions precedent set forth in Section
5.02 have been satisfied. The Borrower will make a good faith effort to request Letters of Credit
from each L/C Issuer in proportion to such L/C Issuer’s respective Pro Rata Share of the
Obligations; provided that if (i) Availability is less than $5,000,000, or (ii) an Event of
Default has occurred and is continuing, then only IDB, in its capacity as an L/C Issuer, may issue
Letters of Credit for the account of the Borrower.

               (b) Letters of Credit Fees.

               (i) The Borrower shall pay to the Agent for the ratable account of the L/C Issuers a
nonrefundable administration fee (a “Letter of Credit Administration Fee”) for each
Letter of Credit issued hereunder and for each amendment to a Letter of Credit that
increases the stated amount of such Letter of Credit, such Fee to be equal to 1/10 of 1%
(0.10%) of the initial stated amount of such Letter of Credit or the increase in the stated
amount of such existing Letter of Credit, as the case may be. The Letter of Credit
Administration Fee shall be payable, in the case of the issuance of a Letter of Credit, in
advance of or prior to the issuance of such Letter of Credit and, in the case of an
amendment of an existing Letter of Credit, in advance of or prior to the amendment of such
existing Letter of Credit. In addition, the Borrower shall pay to the Agent for the account
of the Lenders, in accordance with the Lenders’ Pro Rata Shares, (x) for each Letter of
Credit issued hereunder, a nonrefundable issuance fee (a “Letter of Credit Issuance
Fee”) equal to 1.50% per annum of the stated amount of such Letter of Credit, and (y)
for any amendment to an existing Letter of Credit that increases the stated amount of such
Letter of Credit, a nonrefundable amendment fee (a “Letter of Credit Amendment 

47

 

               Fee”) equal to 1.50% per annum of the increase in the stated amount of such
Letter of Credit.

               (ii) The Borrower shall pay to each L/C Issuer the standard charges from time to time
assessed by such L/C Issuer in connection with the issuance, administration, amendment,
payment or cancellation of Letters of Credit.

               (iii) The Borrower hereby authorizes the Agent to, and the Agent may, from time to
time, charge the Loan Account pursuant to Sections 3.01(c) and 4.02 of this Agreement with
the amount of any Letter of Credit Fees or other charges due under this Section 3.03.

ARTICLE IV

FEES, PAYMENTS AND OTHER COMPENSATION

          Section 4.01 Audit and Collateral Monitoring Fees. Each Company acknowledges that the
Agent and the WC Collateral Agent may upon reasonable notice to such Company conduct audits and/or
field examinations of such Company at any reasonable time and from time to time in a manner so as
to not unduly disrupt the business of such Company, provided that such notice shall not be required
if an Event of Default has occurred and is continuing. The Borrower agrees to pay, for the account
of the Agent, the reasonable charges of each examiner plus the examiner’s reasonable out-of-pocket
costs and expenses incurred in connection with all such visits, inspections, audits and
examinations.

          Section 4.02 Payments; Computations and Statements.

               (a) The Borrower will make each payment hereunder and under the Revolving Credit Notes not
later than 11:00 a.m. (New York City time) on the day when due, in lawful money of the United
States of America and in immediately available funds, to the Agent at the Payment Office. All
payments received by the Agent after 11:00 a.m. (New York City time) on any Business Day will be
credited to the relevant Loan Account on the next succeeding Business Day. All payments shall be
made by the Borrower without defense, set-off or counterclaim to the Agent and the Lenders. Except
as provided in Section 2.05, after receipt, the Agent will promptly thereafter cause to be
distributed like funds relating to the payment of principal ratably to the Lenders and like funds
relating to the payment of any other amount payable to any Lender to such Lender in each case to be
applied in accordance with the terms of this Agreement, provided that the Agent will cause to be
distributed all interest and fees received from or for the account of the Borrower not less than
once each month and in any event promptly after receipt thereof. Any amounts not paid to a Lender
in accordance with the preceding sentence following receipt by the Agent (to the extent such
amounts exceed $500,000 in the aggregate) shall accrue interest from the date such amount is
received by the Agent until the date such amount is paid to such Lender, at a rate per annum equal
to the Federal Funds Rate for three Business Days and thereafter at the Prime Rate. The payment by
the Borrower of any amount to the Agent for the account of the Lenders shall discharge the
obligation of the Borrower for such amount, whether or not received by the Lenders, to the extent
that such payment is made in immediately available funds, such amount is not required to be
returned to the Borrower under

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any applicable bankruptcy law or other law and the distribution of such amount shall not be
enjoined. The Lenders and the Borrower hereby authorizes the Agent to, and the Agent may, from
time to time, charge the Loan Account of the Borrower (or any sub-account thereof) with any amount
due and payable by Borrower under any Loan Document to which Borrower is a party. Each of the
Lenders and the Borrower agree that the Agent shall have the right to make such charges whether or
not any Event of Default or Default shall have occurred and be continuing or whether any of the
conditions precedent in Section 5.02 have been satisfied. Any amount charged to the Loan Account
of the Borrower shall be deemed a Revolving Credit Loan hereunder made by the Lenders to the
Borrower, funded by the Agent on behalf of the Lenders and subject to Section 2.05 of this
Agreement. The Lenders and the Borrower confirm that any charges which the Agent may so make to
the Loan Account of the Borrower as herein provided will be made as an accommodation to the
Borrower and solely at the Agent’s discretion. It is expressly understood and agreed by the
Companies that the Agent and the Lenders shall have no responsibility to inquire into the
correctness of the application apportionment, allocation or disposition of the proceeds of
Revolving Credit Loans or Letters of Credit by or at the direction of the Borrower or any fees,
costs or expenses for which the Borrower is obligated under this Agreement. Whenever any payment
to be made under any such Loan Document shall be stated to be due on a day other than a Business
Day, such payment shall be made on the next succeeding Business Day and such extension of time
shall in such case be included in the computation of interest or fees, as the case may be;
provided, however, if such extension would cause payment of interest on or principal of a
Eurodollar Loan to be made in the next following calendar month, such payment shall be made on the
next preceding Business Day. All computations of fees shall be made by the Agent on the basis of a
year of 360 days for the actual number of days (including the first day but excluding the last day)
occurring in the period for which such fees are payable. Each determination by the Agent of an
interest rate or fees hereunder shall be conclusive and binding for all purposes in the absence of
manifest error.

               (b) The Agent shall use good faith efforts to provide the Borrower and each Lender, promptly
after the end of each calendar month, a summary statement (in the form from time to time used by
Agent) of the opening and closing daily balances in the Loan Account during such month, the amounts
and dates on all Revolving Credit Loans and Agent Advances made during such month, the amounts and
dates of all payments on account of the Revolving Credit Loans to the Borrower during such month
and the Revolving Credit Loans to which such payments were applied, the amount of interest accrued
on the Revolving Credit Loans to the Borrower during such month, any Letters of Credit issued by
the L/C Issuer for the account of the Borrower during such month, specifying the face amount
thereof, the amount of charges to the Loan Account and/or Revolving Credit Loans made to the
Borrower during such month to reimburse the Lenders for drawings made under Letters of Credit, and
the amount and nature of any charges to such Loan Account made during such month on account of
fees, commissions, expenses and other Obligations. All entries on any such statement shall, 30
days after the same is sent, be presumed to be correct and shall constitute presumptive evidence of
the information contained in such statement and shall be final and conclusive absent manifest
error.

          Section 4.03 Sharing of Payments, Etc. Except as provided in Section 2.05 hereof, if
any Lender shall obtain any payment (whether voluntary, involuntary, through the exercise of any
right of set-off, or otherwise) on account of any Obligation in excess of its ratable share of
payments on account of similar obligations obtained by all the Lenders, such Lender

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shall forthwith deliver such excess amount to the Agent and the Agent shall promptly
distribute such amount in accordance with the terms hereof.

          Section 4.04 Apportionment of Payments.

               (a) Subject to Sections 2.05 and 12.01 hereof, all payments of principal and interest in
respect of outstanding Revolving Credit Loans, all payments in respect of the Reimbursement
Obligations, all payments of fees (other than the Letter of Credit Administration Fees, fees with
respect to Letters of Credit provided for in Section 3.03(b)(ii) and the audit and collateral
monitoring fees provided for in Section 4.01) and all other payments in respect of any other
Obligations, shall be allocated by the Agent among such of the Lenders as are entitled thereto, in
proportion to their respective Pro Rata Shares or otherwise as provided herein or, in respect of
payments not made on account of Revolving Credit Loans or Letter of Credit Obligations, as
designated by the Person making payment when the payment is made.

               (b) After the occurrence and during the continuance of an Event of Default, the Agent may, and
upon the direction of the Required Lenders shall, apply all payments in respect of any Obligations
and all proceeds of the Collateral, subject to the provisions of this Agreement, in such order and
in such proportions as the Agent may determine in its sole and absolute discretion.

          Section 4.05 Increased Costs and Reduced Return.

               (a) If any Lender or the L/C Issuer shall have determined that the adoption or implementation
of, or any change in, any law, rule, treaty or regulation, or any policy, guideline or directive
of, or any change in the interpretation or administration thereof by, any court, central bank or
other administrative or Governmental Authority, or compliance by the L/C Issuer or any Lender or
any Affiliate of such Lender or the L/C Issuer with any directive of or guideline from any central
bank or other Governmental Authority or the introduction of or change in any accounting principles
applicable to the L/C Issuer or any Lender or any Affiliate of such Lender or the L/C Issuer (in
each case, whether or not having the force of law), shall (i) change the basis of taxation of
payments to the L/C Issuer or any Lender or any Affiliate of such Lender or the L/C Issuer of any
amounts payable hereunder (except for taxes on the overall net income of the L/C Issuer or any
Lender or any Affiliate of such Lender or the L/C Issuer), (ii) impose, modify or deem applicable
any reserve, special deposit or similar requirement against any Revolving Credit Loan or Letter of
Credit or against assets of or held by, or deposits with or for the account of, or credit extended
by, the L/C Issuer or any Lender, or any Affiliate of such Lender or the L/C Issuer or (iii) impose
on the L/C Issuer or any Lender or any Affiliate of such Lender or the L/C Issuer any other
condition regarding this Agreement or any Revolving Credit Loan or Letter of Credit, and the result
of any event referred to in clause (i), (ii) or (iii) above shall be to increase the cost to the
L/C Issuer or any Lender of making any Revolving Credit Loan or issuing, guaranteeing or
participating in any Letter of Credit, or to reduce any amount received or receivable by the L/C
Issuer or any Lender hereunder, then, upon demand by the L/C Issuer or such Lender, the Borrower
shall pay to the L/C Issuer or such Lender such additional amounts as will compensate the L/C
Issuer or such Lender for such increased costs or reductions in amount, together with interest on
such additional amounts.

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               (b) If any Lender or the L/C Issuer shall have determined that any Capital Guideline or
adoption or implementation of, or any change in, any Capital Guideline by the Governmental
Authority charged with the interpretation or administration thereof, or compliance by the L/C
Issuer, any Lender or any Affiliate of such L/C Issuer or any Lender with any Capital Guideline or
with any request or directive of any such Governmental Authority with respect to any Capital
Guideline, or the implementation of, or any change in, any applicable accounting principles (in
each case, whether or not having the force of law), either (i) affects or would affect the amount
of capital required or expected to be maintained by the L/C Issuer, any Lender or any Affiliate of
such L/C Issuer or any Lender, and the L/C Issuer or any Lender determines that the amount of such
capital is increased as a direct or indirect consequence of any Revolving Credit Loans made or
maintained, Letters of Credit issued or any guaranty or participation with respect thereto, or the
L/C Issuer’s, any Lender’s or any such Person’s Affiliate’s other obligations hereunder, or (ii)
has or would have the effect of reducing the rate of return on the L/C Issuer’s, any Lender’s, or
any such Person’s Affiliate’s capital to a level below that which such L/C Issuer, such Lender or
such Affiliate could have achieved but for such circumstances as a consequence of any Revolving
Credit Loans made or maintained, Letters of Credit issued, or any guaranty or participation with
respect thereto or any agreement to make Revolving Credit Loans, to issue Letters of Credit or such
L/C Issuer’s, such Lender’s, or such Person’s Affiliate’s other obligations hereunder (in each
case, taking into consideration such L/C Issuer’s, such Lender’s or such Affiliate’s policies with
respect to capital adequacy), then, upon demand by the L/C Issuer or any Lender, the Borrower shall
pay to the L/C Issuer or such Lender from time to time such additional amounts as will compensate
the L/C Issuer or such Lender for such cost of maintaining such increased capital or such reduction
in the rate of return on such L/C Issuer’s, such Lender’s or such Affiliate’s capital.

               (c) All amounts payable under this Section 4.05 shall bear interest from the date that is
three Business Days after the date of demand by the L/C Issuer or a Lender until payment in full to
the L/C Issuer or such Lender at the Post-Default Rate. A certificate of the L/C Issuer or any
Lender claiming compensation under this Section 4.05 specifying the event herein above described
and the nature of such event shall be submitted by the L/C Issuer or such Lender to Borrower,
setting forth the additional amount due and an explanation of the calculation thereof, the L/C
Issuer’s or such Lender’s reasons for invoking the provisions of this Section 4.05, and shall be
final and conclusive absent manifest error. The Borrower shall not be required to compensate a
Lender or the L/C Issuer pursuant to subsections (a) or (b) of this Section 4.05 for any amounts
incurred more than 12 months prior to the date that such Lender or the L/C Issuer notifies the
Borrower of such Person’s intention to claim compensation therefor, provided that if the
circumstances giving rise to such claim have a retroactive effect, then such 12 month period shall
be extended to include the period of such retroactive effect with respect to such claim.

ARTICLE V

CONDITIONS OF EFFECTIVENESS, LETTER OF CREDIT

ISSUANCE AND LENDING

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          Section 5.01 Conditions Precedent to Effectiveness. The effectiveness of this
Agreement is subject to the fulfillment, in a manner satisfactory to the Agent, of each of the
following conditions precedent:

               (a) Payment of Fees, Etc. The Borrower shall have paid on or before the Effective
Date, all fees, costs, expenses and taxes then due and payable by the Borrower pursuant to Sections
2.08, 3.03 and 12.05 hereof.

               (b) Representations and Warranties; No Event of Default. The representations and
warranties contained in Section 6.01 of this Agreement and in each other Loan Document and
certificate or other writing delivered to the Agent, the Lenders or the L/C Issuer pursuant hereto
on or prior to the Effective Date shall be true and correct on and as of the Effective Date as
though made on and as of such date; and no Default or Event of Default shall have occurred and be
continuing on the Effective Date or would result from this Agreement becoming effective in
accordance with its terms.

               (c) Legality. The effectiveness of this Agreement shall not contravene any law, rule
or regulation applicable to the Agent, the Lenders or the L/C Issuer.

               (d) Delivery of Documents. The Agent shall have received on or before the Effective
Date the following, each in form and substance satisfactory to the Agent and, unless indicated
otherwise, dated the Effective Date:

               (i) counterparts to this Agreement, duly executed by the Borrower, each Guarantor
Company and the Lenders;

               (ii) amended Revolving Credit Notes payable to the order of each Lender, in each case
duly executed by the Borrower and delivered by the Borrower;

               (iii) amended and restated Schedules to this Agreement and the other Loan Documents;

               (iv) an amendment to the Security Agreement, duly executed by each Company;

               (v) an amendment to the Contribution Agreement, duly executed by each Company;

               (vi) UCC, tax and judgment lien search reports in all relevant jurisdictions, listing
all effective financing statements which name as debtor any Loan Party, (as determined by
the Agent) and which are filed in such office or offices as may be necessary or in the
reasonable opinion of the Agent, desirable to perfect the security interests purported to be
created by the Security Documents, together with copies of such financing statements, none
of which, except as the Agent shall otherwise agree, shall cover any of the Collateral;

               (vii) a copy of the resolutions adopted by the Board of Directors or equivalent
governing body of each Loan Party, certified as of the Effective Date by

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authorized officers thereof, authorizing (x) the borrowings hereunder and the
transactions contemplated by this Agreement and the other documents, instruments and
agreements executed and/or to be delivered in connection herewith or therewith, and (y) the
execution, delivery and performance by each Loan Party of this Agreement and the other
documents, instruments and agreements executed and/or to be delivered in connection herewith
or therewith;

               (viii) a certificate of an authorized officer of each Loan Party, certifying the names
and true signatures of the officers of such Loan Party authorized to sign this Agreement and
the other agreements, instruments and documents to which such Loan Party is or will be a
party and the other documents to be executed and delivered by such Loan Party in connection
herewith, together with evidence of the incumbency of such authorized officers;

               (ix) a certificate, dated as of a date (A) not more than thirty days prior to the
Effective Date, of the appropriate official(s) of the states of incorporation, and (B) not
more than one hundred and eighty days prior to the Effective Date, of the appropriate
official(s) of each state of foreign qualification of each Loan Party, in each case,
certifying as to the subsistence in good standing of, and the payment of taxes by, such Loan
Party in such states;

               (x) a certificate from an authorized officer of each Loan Party, certifying that such
Loan Party has not amended or otherwise modified (A) its charter, certificate of formation
or other organizational document, or (B) its by-laws, limited liability agreement or limited
partnership agreement or equivalent, since January 14, 2004 (or if any such organizational
document has been amended or otherwise modified, attaching a true, correct and complete copy
of such amendment or modification);

               (xi) an opinion of in house counsel to the Loan Parties and Bracewell and Giuliani LLP,
special counsel to the Loan Parties, as to such matters as the Agent may reasonably request;

               (xii) a certificate of the chief executive officer or the chief financial officer of
the Borrower, certifying as to the matters set forth in subsection (b) of this Section 5.01;

               (xiii) an updated certificate of an authorized officer of the Borrower certifying the
names and true signatures of those officers of the Borrower that are authorized to provide
Notices of Borrowings, Letter of Credit Applications and all other notices under this
Agreement and the Loan Documents;

               (xiv) a copy of the projections required by Section 7.01(a)(vi) and the Business Plan;

               (xv) the Lease Assignment, duly executed by the Borrower in favor of the WC Collateral
Agent for the benefit of the Lenders, together with a landlord’s consent, waiver and
estoppel, all acknowledged by the lessor under the Lease Agreement; and

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               (xvi) such other agreements, instruments, approvals, opinions and other documents as
the Agent may reasonably request including, without limitation, all inter-company management
services agreements among the Borrower and the Guarantors or between the Borrower and third
parties.

               (e) Proceedings; Receipt of Documents. All proceedings in connection with the
transactions contemplated by this Agreement, and all documents incidental thereto, shall be
satisfactory to the Agent and its special counsel, and the Agent and such special counsel shall
have received all such information and such counterpart originals or certified or other copies of
such documents as the Agent or such special counsel may reasonably request.

               (f) Material Adverse Effect. The Lenders shall have determined, in their sole
judgment, that no event or development has occurred after September 30, 2005 that may have a
Material Adverse Effect.

               (g) Patriot Act. The Lenders shall have received all documentation and other
information requested by the Lenders, as required by bank regulatory authorities under applicable
“know your customer” and anti-money laundering rules and regulations, including the Patriot Act.

          Section 5.02 Conditions Precedent to Revolving Credit Loans and Letters of Credit. As
a condition precedent to the Agent or any Lender making any Revolving Credit Loan (excluding the
continuation or conversion of any Revolving Credit Loan in accordance with Section 2.11 hereof), or
the L/C Issuer establishing or opening any Letter of Credit, each of the following conditions
precedent shall be fulfilled in a manner satisfactory to the Agent;

               (a) Payment of Fees, Etc. The Borrower shall have paid all fees, costs, expenses and
taxes then payable by the Borrower pursuant to Sections 2.08, 3.03 and 12.05 hereof.

               (b) Representations and Warranties; No Event of Default. The following statements
shall be true and correct, and the submission by the Borrower to the Agent of a Notice of Borrowing
with respect to a Revolving Credit Loan and the Borrower’s acceptance of the proceeds of such
Revolving Credit Loan, or the submission by the Borrower of a Letter of Credit Application with
respect to a Letter of Credit and the issuance of such Letter of Credit shall be deemed to be a
representation and warranty by the Borrower on the date of such Revolving Credit Loan and the date
of the issuance of such Letter of Credit that (i) the representations and warranties contained in
Section 6.01 of this Agreement and in each other Loan Document and certificate or other writing
delivered to the WC Collateral Agent, the Agent, the L/C Issuers or the Lenders pursuant hereto on
or prior to the date of such Revolving Credit Loan or Letter of Credit are true and correct on and
as of the date of such Revolving Credit Loan or the date of the issuance of such Letter of Credit
as though made on and as of such date, except to the extent that any such representation or
warranty expressly relates solely to an earlier date (in which case any such representation or
warranty shall be true and correct on and as of such earlier date); and (ii) no Event of Default or
Default has occurred and is continuing or would result from the making of the Revolving Credit Loan
to be made on such date or the issuance of the Letter of Credit to be issued on such date.

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               (c) Legality. The making of such Revolving Credit Loan or the issuance of such
Letter of Credit shall not contravene any law, rule or regulation applicable to the Agent, the
Lenders or the L/C Issuers, as the case may be.

               (d) Notices. Except in the case of a deemed borrowing of a Revolving Credit Loan
pursuant to Section 3.01(c), the Agent shall have received (i) in the case of a borrowing, a Notice
of Borrowing pursuant to and in accordance with Section 2.03 hereof, (ii) in the case of the
issuance of a Letter of Credit, a Letter of Credit Application pursuant to and in accordance with
Section 3.03(a) and (iii) a copy of any notices required to be delivered to the Agent pursuant to
Section 7.01(a)(xiii).

               (e) Delivery of Documents. The Agent shall have received such other agreements,
instruments, approvals, opinions and other documents, each in form and substance reasonably
satisfactory to the Agent, as the Agent may reasonably request.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

          Section 6.01 Representations and Warranties. Each Company represents and warrants as
follows:

               (a) Organization, Good Standing, Etc. Each Company (i) is a corporation, limited
liability company or limited partnership (as applicable) duly organized, validly existing and in
good standing under the laws of the state of its organization, (ii) has all requisite power and
authority to conduct its business as now conducted and as presently contemplated and to make the
borrowings hereunder (in the case of the Borrower) and to consummate the transactions contemplated
by the Loan Documents and the other Transaction Documents to which it is a party, and (iii) is duly
qualified to do business and is in good standing in each jurisdiction in which the character of the
properties owned or leased by it or in which the transaction of its business makes such
qualification necessary, except where the failure to so qualify individually or in the aggregate is
not reasonably likely to have a Material Adverse Effect.

               (b) Authorization, Etc. The execution, delivery and performance by each Company of
each Loan Document and each other Transaction Document to which it is a party, (i) have been duly
authorized by all necessary corporate action, (ii) do not and will not contravene, in the case of a
corporation, its charter or by-laws, in the case of a limited liability company, its certificate of
formation and limited liability operating agreement, or any applicable equivalent document, and in
the case of a limited partnership, its certificate of limited partnership and limited partnership
agreement, or any applicable equivalent document, or any applicable law or any material contractual
restriction binding on or otherwise affecting it or any of its properties, (iii) do not and will
not result in or require the creation of any Lien (other than pursuant to any such Loan Document)
upon or with respect to any of its properties, and (iv) do not and will not result in any
suspension, revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization
or approval applicable to its operations or any of its properties except where such

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suspension, revocation, impairment, forfeiture or nonrenewal is not reasonably likely to have
a Material Adverse Effect.

               (c) Governmental Approvals. No authorizations, approval or consent of or other action
by, and no notice to or filing with, any Governmental Authority or other regulatory body is
required in connection with the due execution, delivery and performance by each Company of any Loan
Document or other Transaction Document to which it is or will be a party or for the validity or
enforceability thereof.

               (d) Enforceability of Transaction Documents. This Agreement is, and each other Loan
Document and other Transaction Document to which each Company is or will be a party, when delivered
hereunder, will be, a legal, valid and binding obligation of such Company, enforceable against such
Company in accordance with its terms except to the extent that the enforceability thereof may be
limited by any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws from
time to time in effect affecting generally, the enforcement of creditors’ rights and remedies and
by general principles of equity.

               (e) Inventory Locations; Places of Business; Chief Executive Office. There is no
location at which a Loan Party has any Inventory (except for Inventory in transit and other
Inventory with an aggregate market value for all such Inventory not in excess of $500,000) other
than (i) those locations listed on Part A of Schedule 6.01(e) hereto and (ii) any other locations
approved in writing by the Agent pursuant to the definition of “Eligible Inventory.” Part B of
Schedule 6.01(e) hereto contains a true, correct and complete list, as of the Effective Date, of
the legal names and addresses of each storage facility at which Inventory of any Loan Party is
stored. None of the receipts received by any Loan Party from any storage facility states that the
goods covered thereby are to be delivered to bearer or to the order of a named Person or to a named
Person and such named Person’s assigns. Part C of Schedule 6.01(e) sets forth a complete and
accurate list of each location at which the books and records relating to the Inventory and
Accounts Receivables of any Company are maintained or stored. Part D of Schedule 6.01(e) sets
forth a complete and accurate list as of the date hereof of the location of the chief executive
office of each Company.

               (f) Subsidiaries. Schedule 6.01(f) hereto is a complete and correct description of
the name, jurisdiction of incorporation and ownership of the outstanding Capital Stock of the
Companies (other than with respect to the ownership of the of the outstanding Capital Stock of
Parent) and each Subsidiary of the Companies. Except as provided in Schedule 6.01(f) hereto and
except for the shares of Capital Stock of the Parent, Alon USA and any Subsidiary of Alon
Interests, all shares of such Capital Stock owned by the Loan Parties, as indicated in such
Schedule, are owned free and clear of all Liens other than Permitted Liens.

               (g) Litigation. As of the Effective Date, there is no pending or, to the best of the
Companies’ knowledge threatened action, suit or proceeding affecting the Companies or any of their
Subsidiaries before any court or other Governmental Authority or any arbitrator, except as set
forth on Schedule 6.01(g) hereto and except for actions, suits and proceedings seeking money
damages of less than $1,000,000 in the aggregate. There is no pending or, to the best of the
Companies’ knowledge, threatened action, suit or proceeding affecting the Companies

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or any of their Subsidiaries before any court or other Governmental Authority or any
arbitrator which may have a Material Adverse Effect.

               (h) Financial Condition.

               (i) The Financial Statements, copies of which have been delivered to the Lenders,
fairly present in all material respects the financial condition of the Companies and their
Subsidiaries as at the respective dates thereof and the results of operations of the
Companies and their Subsidiaries for the fiscal periods ended on such respective dates, all
in accordance with GAAP, and since December 31, 2005, there has been no event or development
that has had or may reasonably be expected to have a Material Adverse Effect.

               (ii) The Borrower has heretofore furnished to the Agent and the Lenders the Business
Plan and projected pro forma balance sheets, income statements and statements of cash flow
for the period from December 31, 2003 to December 31, 2010, prepared on an annual basis,
and the Business Plan and such projections were believed at the time furnished to be
reasonable, have been prepared on a reasonable basis and in good faith by the Borrower, and
have been based on assumptions believed by the Borrower to be reasonable at the time made
and upon the best information then reasonably available to the Borrower.

               (i) Compliance with Law, Etc. Neither (i) the Borrower nor any other Company is in
violation of its charter, by-laws, limited partnership agreement or limited liability agreement (as
applicable) or (ii) any law or any material term of any agreement or instrument binding on or
otherwise affecting it or any of its properties except where, in the case of clause (ii) of this
Section 6.01(i), such violation of an instrument or agreement is not reasonably likely to result in
a Material Adverse Effect.

               (j) ERISA. Schedule 6.01(j) hereto sets forth each Employee Plan and Multiemployer
Plan. Except as set forth on Schedule 6.01(j) hereto, (i) each Employee Plan is in substantial
compliance with the applicable provisions of ERISA and the Internal Revenue Code, (ii) no
Termination Event has occurred nor is reasonably expected to occur with respect to any Employee
Plan, (iii) the most recent annual report (Form 5500 Series) with respect to each Employee Plan,
including Schedule B (Actuarial Information) thereto, copies of which have been filed with the
Internal Revenue Service and delivered to the Agent, is complete and correct and fairly presents
the funding status of such Employee Plan, and since the date of such report there has been no
material adverse change in such funding status, (iv) no Employee Plan had an accumulated or waived
funding deficiency or permitted decreases or has applied for an extension of any amortization
period within the meaning of Section 412 of the Internal Revenue Code at any time during the
previous 60 months, and (v) no Lien imposed under the Internal Revenue Code or ERISA exists or is
likely to arise on account of any Employee Plan within the meaning of Section 412 of the Internal
Revenue Code at any time during the previous 60 months. Except as set forth on Schedule 6.01(j)
hereto, neither the Companies nor any of their respective ERISA Affiliates, have incurred any
withdrawal liability under ERISA with respect to any Multiemployer Plan, and the Companies are not
aware of any facts indicating that any Company or any of their respective ERISA Affiliates may in
the future incur any such withdrawal liability.

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Except as required by Section 4980B of the Internal Revenue Code or as otherwise set forth on
Schedule 6.01(j) hereto, neither the Companies nor any of their respective ERISA Affiliates
maintains an employee welfare benefit plan (as defined in Section 3(1) of ERISA) which provides
health or welfare benefits (through the purchase of insurance or otherwise) for any retired or
former employee of the Companies or any of their respective ERISA Affiliates or coverage after a
participant’s termination of employment. Neither the Companies nor any of their respective ERISA
Affiliates has incurred any liability or obligation under the Worker Adjustment and Retraining
Notification Act (“WARN”) or similar state law, which remains unpaid or unsatisfied.

               (k) Taxes, Etc. All Federal, state and local tax returns and other reports required
by applicable law to be filed by the Companies or their Subsidiaries have been filed, and all
taxes, assessments and other governmental charges imposed upon the Companies or their Subsidiaries
or any property of the Companies or their Subsidiaries and which have become due and payable on or
prior to the date hereof have been paid, except (i) such filings or payments to be made by any of
the Immaterial Companies, provided that the failure by such Immaterial Companies to make
such filings or payments, either individually or in the aggregate, could not reasonably be expected
to have a Material Adverse Effect or (ii) to the extent payments are contested in good faith by
proper proceedings which stay the imposition of any penalty, fine or Lien resulting from the
non-payment thereof and with respect to which adequate reserves have been set aside for the payment
thereof.

               (l) Regulations T, U and X. None of the Companies nor any of their Subsidiaries is or
will be engaged in the business of extending credit for the purpose of purchasing or carrying
margin stock (within the meaning of Regulations T, U and X issued by the Board of Governors of the
Federal Reserve System), and no proceeds of any Revolving Credit Loan will be used to purchase or
carry any margin stock or to extend credit to others for the purpose of purchasing or carrying any
margin stock.

               (m) Nature of Business. The Companies and their Subsidiaries (other than Alon
Logistics) are not engaged in any business other than (i) the ownership or leasing of certain of
the Fixed Assets, the manufacturing, processing, distribution and marketing of fuel, fuel
by-products, diesel, gas, asphalt and related goods and products and other businesses incidental
thereto, and (ii) the operation of convenience stores and retail gasoline stations and other
businesses incidental thereto. Alon Logistics is not engaged in any other business other than the
ownership of the Alon Logistics Notes, the Unit Consideration and incurrence of the liabilities, if
any, under the Loan Documents, the Contribution Agreement or the Indemnification Agreement and
liabilities imposed by law incidental to its existence and permitted business and activities.
Except for the Loan Parties, no Company is engaged in the sale of Hydrocarbon Products.

               (n) Adverse Agreements, Etc. Neither the Companies nor any of their respective
Subsidiaries is a party to any agreement or instrument, or subject to any charter or other
organizational restriction or any judgment, order, regulation, ruling or other requirement of a
court or other Governmental Authority or regulatory body, which has or, to the best knowledge of
any Company in the future is reasonably likely to result in, a Material Adverse Effect.

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               (o) Holding Company and Investment Company Acts. None of the Companies is (i) a
“holding company” or a “subsidiary company” of a “holding company” or an “affiliate” of a “holding
company,” as such terms are defined in the Public Utility Holding Company Act of 1935, as amended,
or (ii) an “investment company” or an “affiliated person” or “promoter” of, or “principal
underwriter” of or for, an “investment company”, as such terms are defined in the Investment
Company Act of 1940, as amended.

               (p) Permits, Etc. Each Company (other than any Immaterial Company) has all material
permits, licenses, authorizations and approvals required for it lawfully to own and operate its
business.

               (q) Title to Properties. Each Company (other than any Immaterial Company) has good
and marketable title to all of its personal properties and assets, and good and indefeasible title
to all of its real property assets, in all cases, free and clear of all Liens, except for Permitted
Liens.

               (r) Full Disclosure. No Loan Document or schedule or exhibit thereto and, subject to
Section 6.01(h)(ii) in the case of financial projections, no certificate, report, statement or
other document or information furnished in writing by or on behalf of the Companies to the Lenders
in connection herewith or with the consummation of the transactions contemplated hereby, contains
any material misstatement of fact or omits to state a material fact or any fact necessary to make
the statements contained herein or therein not misleading in any material respect.

               (s) Environmental Matters. (i) The operations of the Companies and their Subsidiaries
are in material compliance with all applicable Environmental Laws except where non-compliance could
not reasonably be expected to have a Material Adverse Effect; (ii) there has been no Release at any
of the properties owned or operated by any Company or any of its Subsidiaries or a predecessor in
interest, or at any disposal or treatment facility which received Hazardous Materials generated by
any Company or any of its Subsidiaries or any predecessor in interest except, in each case, where
the Release could not reasonably be expected to have a Material Adverse Effect; (iii) no
Environmental Actions have been asserted against any Company or any of its Subsidiaries or any
predecessor in interest which is reasonably likely to have a Material Adverse Effect, nor does any
Company have knowledge or notice of any threatened or pending Environmental Action against any
Company or any of its Subsidiaries or any predecessor in interest which is reasonably likely to
have a Material Adverse Effect; (iv) no Environmental Actions have been asserted against any
facilities that may have received Hazardous Materials generated by any Company or any of its
Subsidiaries or any predecessor in interest which are reasonably likely to result in a Material
Adverse Effect; and (v) the Companies have caused to be delivered or made available to the Agent
true and complete copies of all environmental reports, studies, investigations or material
correspondence regarding any Releases, violations of Environmental Law or Environmental Costs of or
by any of the Companies or any of their Subsidiaries or any environmental conditions at any of the
properties owned or leased by any of the Companies or any of their Subsidiaries which are
reasonably likely to result in a Material Adverse Effect, which are in possession of any Company or
any of its Subsidiaries or any of their agents.

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               (t) Schedules. All of the information which is required to be scheduled to this
Agreement is set forth on the Schedules attached hereto, is correct and accurate and does not omit
to state any information material thereto.

               (u) Insurance. The Companies keep their properties adequately insured and maintain
(i) insurance to such extent and against such risks, including, flood, fire and environmental
hazards, as is customary with companies in the same or similar businesses, (ii) workmen’s
compensation insurance in the amount required by applicable law, (iii) public liability insurance,
which shall include product liability insurance, in the amount customary with companies in the same
or similar business against claims for personal injury or death on properties owned, occupied or
controlled by them, and (iv) such other insurance as may be required by law or as may be reasonably
required in writing by the Agent.

               (v) Use of Proceeds. The proceeds of the Revolving Credit Loans (i) were and shall
continue to be used for working capital in the ordinary course of business of the Borrower and its
Subsidiaries, (ii) shall be used to pay fees and expenses in connection with this Agreement and the
transactions contemplated hereby, and (iii) for other purposes not prohibited by this Agreement.

               (w) Security Interests. The Security Documents create in favor of the WC Collateral
Agent, for the benefit of the Lenders, a legal, valid and enforceable security interest in and Lien
upon the Collateral. Each such security interest and Lien granted pursuant to a Security Document
is, and upon the filing of the UCC financing statements described in Section 5.01(e), such security
interests in and Liens on the Collateral granted thereby (other than Collateral with an aggregate
market value not in excess of $500,000) shall be, perfected, first priority security interests
(subject to Permitted Liens and, provided that, in the case of Collateral consisting of the
License Agreement (but not any Account Receivable relating thereto) or that is not Revolving
Priority Collateral, such Lien may, at Borrower’s request, constitute at least a perfected second
priority security interest in favor of WC Collateral Agent), and no further recordings or filings
are or will be required in connection with the creation, perfection or enforcement of such security
interests and Liens, other than the filing of continuation statements in accordance with applicable
law and as set forth in the relevant Security Documents.

               (x) Solvency. After giving effect to the transactions contemplated or required to
occur by the terms of the Transaction Documents, (i) the Borrower is, individually, and together
with its Subsidiaries, Solvent, and (ii) the Companies together with their Subsidiaries on a
consolidated basis, are Solvent.

               (y) Employee and Labor Matters. (i) There is (A) no unfair labor practice complaint
pending or, to the best knowledge of any Company, threatened against the Borrower or any other
Company (other than an Immaterial Company) before any Governmental Authority and no grievance or
arbitration proceeding pending or threatened against the Borrower or any other Company (other than
an Immaterial Company) which arises out of or under any collective bargaining agreement, (B) no
strike, labor dispute, slowdown, stoppage or similar action or grievance pending or threatened
against the Borrower or any other Company (other than an Immaterial Company) and (C) to the best
knowledge of each Company, no union representation question existing with respect to the employees
of the Borrower or any other

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Company (other than an Immaterial Company) and no union organizing activity taking place with
respect to any of the employees of any of them.

               (z) Certain Transaction Documents. The Borrower has delivered to the Agent a complete
and correct copy, as of the Effective Date, of each Lease Document and the License Agreement,
including all schedules and exhibits thereto and all agreements, instruments or other documents
evidencing or governing any Capital Stock or Indebtedness issued in connection therewith. Each
Lease Document and License Agreement sets forth the entire agreement and understanding of the
parties thereto relating to the subject matter thereof, and there are no other agreements,
arrangements or understandings, written or oral, relating to the matters covered thereby. The
execution, delivery and performance of each Lease Document and License Agreement has been duly
authorized by all necessary action (including, without limitation, the obtaining of any consent of
stockholders or other holders of Capital Stock or other Person required by law or by any applicable
corporate or other organizational documents) on the part of each Company party thereto and to the
best of the Companies’ knowledge, each other Person party thereto. No authorization or approval or
other action by, and no notice to filing with or license from, any Governmental Authority is
required for such execution, delivery and performance other than such as have been obtained on or
prior to the Effective Date. Each Lease Document and License Agreement is the legal, valid and
binding obligation of the parties thereto, enforceable against such parties in accordance with its
terms.

               (aa) Consummation of Transactions. (i) None of the Lease Documents have been amended
or otherwise modified as of the Effective Date, and there has been no breach of any material term
under any Lease Document, and (ii) all conditions precedent to each Lease Document, and the
consummation of the acquisition and lease transactions pursuant thereto, have been fulfilled or
(with the prior written consent of Agent) waived.

               (bb) Representations and Warranties in Documents; No Default. All representations and
warranties made by any of the Companies as set forth in the Loan Documents are true and correct in
all respects at the time as of which such representations were made and on the Effective Date. No
Event of Default has occurred and is continuing and no condition exists which constitutes a Default
or an Event of Default.

               (cc) Location of Bank Accounts. Schedule 6.01(cc) hereto sets forth a complete and
accurate list of all deposit and other accounts maintained by the Companies and their Subsidiaries
(including the Cash Concentration Account and all Depository Accounts of the Borrower) together
with a description thereof (i.e. the bank at which such deposit or other account is maintained and
the account number and the purpose thereof).

               (dd) Name; Jurisdiction of Organization; Organizational ID Number; FEIN. Schedule
6.01(dd) sets forth a complete and accurate list of (i) the exact legal name of each Loan Party,
(ii) the jurisdiction of organization of each Loan Party, (iii) the organizational identification
number of each Loan Party (or indicates that such Loan Party has no organizational identification
number), and (iv) the federal employer identification number of each Loan Party.

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ARTICLE VII

COVENANTS OF COMPANIES

          Section 7.01 Affirmative Covenants. So long as any principal of or interest on the
Revolving Credit Loans, any Reimbursement Obligation or any other Letter of Credit Obligations
(whether or not due) shall remain unpaid or any Lender shall have any Revolving Credit Commitment
hereunder, the Companies will unless the Required Lenders shall otherwise consent in writing:

               (a) Reporting Requirements. Furnish to the Lenders:

               (i) as soon as available and in any event within 60 days after the end of each of the
first three Fiscal Quarters of the Parent in each Fiscal Year, consolidated balance sheets,
consolidated statements of income and consolidated statements of cash flow of (x) the Parent
and its Consolidated Subsidiaries and (y) Alon USA and its Consolidated Subsidiaries, in
each case, as at the end of such Fiscal Quarter; and for the period commencing at the end of
the immediately preceding Fiscal Year and ending with the end of such Fiscal Quarter,
setting forth in each case in comparative form the figures for the corresponding date or
period of the immediately preceding Fiscal Year, all in reasonable detail and (A) certified
by the chief financial officer of the Parent or Alon USA as fairly presenting, in all
material respects, the financial position and the results of operations and changes in
financial position, as of the end of such Fiscal Quarter of (x) the Parent and its
Consolidated Subsidiaries, (y) Alon USA and its Consolidated Subsidiaries, in accordance
with GAAP applied in a manner consistent with that of the most recent audited financial
statements furnished to the Lenders, subject to year end adjustments, and (B) in the case of
the financial statements of (x) the Parent and its Consolidated Subsidiaries and (z) Alon
USA and its Consolidated Subsidiaries, accompanied by a review report thereon of KPMG, LLP
or other independent certified public accountants of recognized standing selected by the
Parent and satisfactory to the Agent (it being agreed that any “Big Four” accounting firm
shall be deemed acceptable), which report shall state that such accountants reviewed such
consolidated balance sheets, statements of income and statements of cash flow and that based
on such review, such accountants are not aware of any material modifications that should be
made in such financial statements in order for them to be in conformity with GAAP;

               (ii) as soon as available, and in any event within 90 days after the end of each Fiscal
Year of the Parent, the audited consolidated balance sheets, consolidated statements of
income and consolidated statements of stockholders’ equity and consolidated statements of
cash flow of (x) the Parent and its Consolidated Subsidiaries and (y) Alon USA and its
Consolidated Subsidiaries, in each case, as at the end of such Fiscal Year, setting forth in
comparative form the corresponding figures for the immediately preceding Fiscal Year, all in
reasonable detail and prepared in accordance with GAAP, and (in the case of the consolidated
balance sheets and statements of income, stockholders’ equity and cash flow) accompanied by
a report and an unqualified opinion, prepared in accordance with generally accepted auditing
standards, of KPMG, LLP or other independent certified public accountants of

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recognized standing selected by the Parent and satisfactory to the Agent (it being
agreed that any “Big Four” accounting firm shall be deemed acceptable);

               (iii) as soon as available and in any event within 30 days of the end of each Fiscal
Month, an internally prepared consolidated and consolidating balance sheets, consolidated
and consolidating statements of income and consolidated and consolidating statements of cash
flow for such Fiscal Month of (x) the Parent and its Consolidated Subsidiaries and (y) Alon
USA and its Consolidated Subsidiaries, in each case, for such Fiscal Month and for the
period from the beginning of such Fiscal Year to the end of such Fiscal Month, all in form
and detail consistent with that of the most recent monthly financial statements furnished to
the Agent prior to the date hereof and certified by the chief financial officer of the
Parent or Alon USA, as appropriate, as fairly presenting, in all material respects, the
financial position of the Parent and its Consolidated Subsidiaries and Alon USA and its
Consolidated Subsidiaries, in each case, as of the end of such Fiscal Month and the results
of operations and changes in financial position of the Parent and its Consolidated
Subsidiaries and Alon USA and its Consolidated Subsidiaries, in each case, for such Fiscal
Month, in accordance with GAAP applied in a manner consistent with that of the most recent
audited financial statements furnished to the Agent, subject to normal year end audit
adjustments and the absence of footnotes;

               (iv) simultaneously with the delivery of the financial statements required by clauses
(i), (ii) and (iii) of this Section 7.01(a), a certificate of the chief financial officer of
the Parent or Alon USA, as appropriate, stating (a) that such officer is familiar with the
provisions of this Agreement and the other Loan Documents and has made or caused to be made
under his supervision a review of the condition and operations of the Companies and their
Subsidiaries during the period covered by such financial statements with a view to
determining whether the Companies and their Subsidiaries were in compliance with all of the
provisions of such Loan Documents at the times such compliance is required by the Loan
Documents, and that such review has not disclosed, and such officer has no knowledge of, the
existence during such period of an Event of Default or Default or, if an Event of Default or
such Default existed, describing the nature and period of existence thereof and the action
which the Companies and their Subsidiaries propose to take or took with respect thereto and
(b) a schedule showing the calculations specified in Section 7.02(i) of this Agreement;

               (v) on the 15th day of each month, a schedule, in form and substance
reasonably satisfactory to the Agent, containing actual information as of the
30th day of the preceding month, certified by the chief financial officer of the
Borrower, containing a breakdown of each Loan Party’s Inventory by amount and valued at cost
(which shall include dollar valuation by location) and storage facility and production
facility location, appropriately completed with information reasonably satisfactory to the
Agent, and incorporating all appropriate month-end adjustments;

               (vi) (A) on or before December 31 of each calendar year, financial projections for (x)
the Parent and its Subsidiaries and (y) Alon USA and its Subsidiaries, each in form and
substance reasonably satisfactory to the Agent, for the

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one-year period commencing on January 1 of the succeeding calendar year prepared on a
monthly basis through December 31 of such succeeding calendar year, and (B) on or before
July 1 of each calendar year, updated financial projections, in form and substance
reasonably satisfactory to the Agent, for the remaining six (6) month period in such year
for (x) the Parent and its Subsidiaries and (y) Alon USA and its Subsidiaries, all such
financial projections to be reasonable, to be prepared on a reasonable basis and in good
faith, and to be based on assumptions believed by the Companies to be reasonable at the time
made and from the best information then available to the Companies;

               (vii) promptly upon their becoming available, a copy of (A) all consultants’ reports,
investment bankers’ reports, accountants’ management letters, business plans and similar
documents, (B) all reports, financial statements or other information delivered by any of
the Companies, (C) all reports, proxy statements, financial statements and other information
generally distributed by any Company to its creditors or the financial community in general,
and (D) any audit or other reports submitted to the Company by independent accountants in
connection with any annual, interim or special audit;

               (viii) as soon as available and in any event within 15 days after the end of each
month, a report, in form and substance reasonably satisfactory to the Agent, setting forth a
summary of the economic terms of each Hedging Agreement to which any Company is a party,
including the obligations of such Company under such Hedging Agreement as of the end of such
month, provided that such report shall only be required to the extent the aggregate
notional amount of all such Hedging Agreements is greater than or equal to $20,000,000;

               (ix) as soon as available and, in any event, no later than on the 15th day of each
month (A) a Borrowing Base Certificate containing actual information as of the 30th day of
the preceding month and setting forth and certifying as to (1) the calculation of the
Borrowing Base, (2) Availability, (3) the then current Blended West Texas Crude Oil Price
and (4) the then current Base Production Level, (B) an aging report for the Borrower’s
Accounts Receivable current as of the close of business on the preceding Business Day and
(C) a detailed summary of the accounts payable of each Company, current as of the close of
business on the preceding Business Day, in each case appropriately completed with
information reasonably satisfactory to the Agent, incorporating all appropriate adjustments.
In addition, if the Agent or the Required Lenders reasonably believe that Availability may
be less than zero, promptly (but in any event within five days) after the written request of
the Agent or the Required Lenders (but not more than two times per month), the Borrower will
provide an additional Borrowing Base Certificate containing actual information as of a
recent date, provided that the Borrower may instead elect to provide to the Agent
and the Lenders with (x) total Inventory, (y) total Accounts Receivable (including an aging
thereof) and (z) total cash (including a breakdown as to where cash is held), and the Agent
and the Lenders may utilize such information to calculate the Borrowing Base;

               (x) promptly after submission to any Government Authority, (A) all material documents
and information furnished to such Government Authority and

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(B) a copy of the cover letter and a summary of all documents and information furnished
to such Governmental Authority in connection with any investigation of any Loan Party other
than routine inquiries by such Governmental Authority; the Companies agree promptly to
furnish copies of any documents or information described in any such summary and to furnish
additional copies of such submissions to any consultant or adviser to the Lenders or the
Agent, in each case as the Agent may direct;

               (xi) as soon as possible and in any event within five days after the occurrence of an
Event of Default or Default, or a Material Adverse Effect, the written statement of the
chief executive officer or the chief financial officer of the Parent, setting forth the
details of such Event of Default, Default or Material Adverse Effect and the action which
the Companies and their Subsidiaries propose to take with respect thereto;

               (xii) (A) as soon as possible and in any event (1) within 30 days after the Companies
or any of their respective ERISA Affiliates knows or has reason to know that any Termination
Event described in clause (i) of the definition of Termination Event with respect to any
Employee Plan has occurred, (2) within 10 days after the Companies or any of their
respective ERISA Affiliates knows or has reason to know that any other Termination Event
with respect to any Employee Plan has occurred, or (3) within 10 days after any of the
Companies or any of their respective ERISA Affiliates knows or has reason to know that an
accumulated funding deficiency has been incurred or an application has been made to the
Secretary of the Treasury for a waiver or modification of the minimum funding standard
(including installment payments) or an extension of any amortization period under Section
412 of the Internal Revenue Code with respect to an Employee Plan, a statement of the chief
financial officer of the Parent or Alon USA setting forth the details of such occurrence and
the action, if any, which the Companies or any of their respective ERISA Affiliates proposes
to take with respect thereto, (B) promptly and in any event within two Business Days after
receipt thereof by the Companies or any of their respective ERISA Affiliates from the
Pension Benefit Guaranty Corporation, copies of the notice received by the Companies or any
of their respective ERISA Affiliates of the Pension Benefit Guaranty Corporation’s intention
to terminate any Plan or to have a trustee appointed to administer any Plan, (C) promptly
and in any event within 30 days after the filing thereof with the Internal Revenue Service,
copies of each Schedule B (Actuarial Information) to the annual report (Form 5500 Series)
with respect to each Employee Plan and Multiemployer Plan, (D) promptly and in any event
within ten days after receipt thereof by the Companies or any of their respective ERISA
Affiliates from a sponsor of a Multiemployer Plan or from the Pension Benefit Guaranty
Corporation, a copy of the notice received by the Companies or any of their respective ERISA
Affiliates concerning the imposition or amount of withdrawal liability under Section 4202 of
ERISA or indicating that such Multiemployer Plan may enter reorganization status under
Section 4241 of ERISA, and (E) promptly and in any event within 10 Business Days after any
of the Companies or any of their respective ERISA Affiliates sends notice of a plant closing
or mass layoff (as defined in WARN) to employees, copies of each such notice sent by the
Borrower, the Guarantors or any of their respective ERISA Affiliates;

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               (xiii) as soon as available and in any event (A) within 5 Business Days after receipt
or delivery thereof, copies of any material notices that the Borrower receives from or sends
to any of its licensors in connection with the License Agreement that any Company receives
or sends in respect of the License Agreement or Lease Document, (B) not less than 5
Business Days prior to the effective date thereof, copies of any amendments, modifications,
waivers or other changes to any License Agreement or Lease Document, and (C) any written
notice received by the Borrower or any Subsidiary from Holly, or provided by the Borrower or
any Subsidiary to Holly, pursuant to any P&T Contract that (1) relates to a default or
alleged default by any party under any such Agreement; (2) could reasonably be expected to
result in (x) the termination or suspension of the P&T Agreement or (y) a Material Adverse
Effect; or (iii) is otherwise material to the Pipeline Transactions;

               (xiv) promptly after the commencement thereof but in any event not later than five days
after service of process with respect thereto on, or the obtaining of knowledge thereof by,
any of the Companies, notice of each action, suit or proceeding before any court or other
Governmental Authority or other regulatory body or any arbitrator which if adversely
determined could have a Material Adverse Effect;

               (xv) promptly after the commencement thereof but in any event not later than five days
after service of process with respect thereto on, or the obtaining of knowledge thereof by,
any of the Companies, notice of any material Environmental Actions against the Loan Parties
or any of their Subsidiaries which are reasonably likely to result in a Material Adverse
Effect; and

               (xvi) promptly upon request, such other information concerning the condition or
operations, financial or otherwise, of any of the Companies that the Agent from time to time
may reasonably request.

               (b) Subsidiaries, Etc. Cause each Subsidiary of a Company (other than (A) a
Subsidiary of Alon Interests and (B) any direct Subsidiary of the Parent and any Subsidiary of any
direct Subsidiary of the Parent (other than Subsidiaries of Alon USA)) not in existence on the
Effective Date to execute and deliver to the Lender promptly and in any event within five Business
Days after the formation or acquisition thereof (i) a Joinder Agreement, substantially in the form
of Exhibit F hereto and otherwise in form and substance satisfactory to the Agent, pursuant to
which such Subsidiary shall be made a party to this Agreement as a Company and Guarantor, (ii) a
supplement to the Security Agreement and (iii) such other agreements, instruments, approvals, legal
opinions or other documents reasonably requested by the Agent in order to create, perfect,
establish the priority of or otherwise protect any Lien purported to be covered by any such
Security Document to effect the intent that such Subsidiary shall become bound by all of the terms,
covenants and agreements contained in the Loan Documents and that all Revolving Priority Collateral
of such Subsidiary shall become Collateral for the Obligations.

               (c) Compliance with Laws, Etc. Comply, and cause each of their respective
Subsidiaries to comply, in all material respects with all applicable material laws, rules,
regulations and orders (including, without limitation, ERISA and Environmental Laws), such

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compliance to include, without limitation, (i) paying before the same become delinquent all
taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits
or upon any of its properties, and (ii) paying all lawful claims which if unpaid might become a
Lien upon any of its properties, except to the extent contested in good faith by proper proceedings
which stay the imposition of any penalty, fine or Lien resulting from the non-payment thereof and
with respect to which adequate reserves have been set aside for the payment thereof.

               (d) Preservation of Existence, Etc. Maintain and preserve, and cause each of their
Subsidiaries to maintain and preserve, its existence, rights and privileges, and become or remain
duly qualified and in good standing in each jurisdiction in which the character of the properties
owned or leased by them or in which the transaction of their business makes such qualification
necessary except (i) where such failure to qualify is not reasonably likely to result in a Material
Adverse Effect or (ii) to the extent expressly permitted herein.

               (e) Keeping of Records and Books of Account. Keep, and cause each of their
Subsidiaries to keep, adequate records and books of account, with complete entries made in
accordance with GAAP.

               (f) Inspection Rights. Permit, and cause each of their Subsidiaries to permit, the
Agent, or any agents or representatives thereof at any time and from time to time and in any event
at least annually upon reasonable notice to the Borrower, during normal business hours to examine
and make copies of and abstracts from the records and books of account of the Companies, to visit
and inspect their properties, to conduct audits and field examinations, Phase I and Phase II
Environmental Site Assessments, physical counts, valuations or examinations and to discuss their
affairs, finances and accounts with any of the directors, officers, managerial employees,
independent accountants or other representatives thereof (all at the cost and expense of the
Borrower), provided that (i) the foregoing shall be in a manner so as to not unduly disrupt the
business of any Company and (ii) such notice shall not be required if an Event of Default has
occurred and is continuing.

               (g) Maintenance of Properties, Etc. Except as may be expressly permitted herein,
maintain and preserve, other than with respect to any Immaterial Company, all of their properties
which are necessary or useful in the proper conduct of their business in good working order and
condition, ordinary wear and tear excepted, and comply, in all material respects, other than with
respect to any Immaterial Company, at all times with the provisions of all leases to which each of
them is a party as lessee or under which each of them occupies property, so as to prevent any loss
or forfeiture thereof or thereunder.

               (h) Maintenance of Insurance. Maintain for the Companies and their Subsidiaries, with
responsible and reputable insurance companies or associations, insurance (including, without
limitation, comprehensive general liability and property and casualty insurance and including
environmental impairment liability insurance sufficient to cover any reasonably anticipated
Environmental Costs, with the Lenders and the WC Collateral Agent listed as an additional insured
for the benefit of the Lenders and the WC Collateral Agent) with respect to their properties and
business, in such amounts and covering such risks, as the Agent may require and in any event as is
required by any Governmental Authority or other regulatory

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body having jurisdiction with respect thereto and as is carried generally in accordance with
sound business practice by companies in similar businesses similarly situated. The Borrower shall
maintain for the benefit of the WC Collateral Agent and the Lenders, and shall not cancel or
terminate, any existing fully paid secured lender liability insurance policy.

               (i) Environmental. Shall, and shall cause each Subsidiary to (i) keep any property
either owned or operated by it free of any Liens arising under any Environmental Laws; (ii) comply
in all material respects with Environmental Laws and provide to the Agent documentation of such
compliance which the Agent reasonably requests; (iii) notify the Agent of any material Release of a
Hazardous Material and take any Remedial Actions required to abate said Release; and (iv) promptly
provide the Agent with written notice within ten (10) days of the receipt of any material
Environmental Action or notice that a Environmental Action will be filed against any of the
Companies or their Subsidiaries which could reasonably be expected to result in a Material Adverse
Effect.

               (j) Further Assurances. Shall, and shall cause each Subsidiary to, do, execute,
acknowledge and deliver, at the sole cost and expense of the Borrower all such further acts, deeds,
conveyances, assignments, estoppel certificates, financing statements, notices of assignment,
transfers and assurances as the Agent may reasonably require from time to time in order to (i)
carry out more effectively the purposes of this Agreement and the other Loan Documents, (ii)
subject to valid and perfected first priority Liens on all the Collateral (subject to the Permitted
Liens), (iii) perfect and maintain the validity, effectiveness and priority of any of the Loan
Documents and the Liens intended to be created thereby (subject to the Permitted Liens), and (iv)
better assure, convey, grant, assign, transfer and confirm unto the Agent, the WC Collateral Agent,
the Lenders and the L/C Issuer the rights now or hereafter intended to be granted to the Agent, the
WC Collateral Agent, the Lenders and the L/C Issuer under this Agreement, any Loan Document or any
other instrument under which the Companies and their respective Subsidiaries may be or may
hereafter become bound for carrying out the intention or facilitating the performance of the terms
of the Agreement. In furtherance of the foregoing, to the maximum extent permitted by applicable
law, each Company (A) authorizes the Agent to execute any such agreements, instruments or other
documents in such Company’s name and to file such agreements, instruments or other documents in any
appropriate filing office, (B) authorizes the Agent to file any financing statement required
hereunder or under any other Loan Document, and any continuation statement or amendment with
respect thereto, in any appropriate filing office without the signature of such Company, and (C)
ratifies the filing of any financing statement, and any continuation statement or amendment with
respect thereto, filed without the signature of such Company prior to the date hereof.

               (k) Change in Collateral; Collateral Records. Give the Agent not less than thirty
days’ prior written notice of any change in the location of any Collateral, other than to
locations, that as of the date hereof are known to the Agent and at which the WC Collateral Agent
has filed financing statements and otherwise fully perfected its Liens thereon, other than with
respect to Collateral with an aggregate market value not in excess of $500,000. The Borrower shall
also advise the Agent promptly, in sufficient detail, of any material adverse change relating to
the type, quantity or quality of the Collateral or the Lien granted thereon. The Borrower agrees
to execute and deliver to the Agent for the benefit of the Lenders from time to time, solely for
the Agent’s convenience in maintaining a record of Collateral, such written

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statements and schedules as the Agent may reasonably require, designating, identifying or
describing the Collateral. The Borrower’s failure, however, to promptly give the Agent such
statements or schedules shall not effect, diminish or modify or otherwise limit the WC Collateral
Agent’s security interest in the Collateral.

               (l) Borrowing Base. Maintain all Revolving Credit Loans and Letter of Credit
Obligations in compliance with the then current Borrowing Base.

               (m) Cash Management. (i) Except as otherwise set forth in this Section 7.01(m), cause
all cash and all proceeds from Accounts Receivable and the sale of Inventory to be deposited each
Business Day into Depository Accounts that are subject to Depositary Account Agreements, (ii) cause
all funds in such Depository Accounts to be transferred by automated clearing house transfer or
wire transfer into the Cash Concentration Account at least once per week, (iii) authorize, and the
Companies do hereby authorize, the Agent to cause all cash to be sent by wire transfer to the Agent
Account at the discretion of the Agent and at times or intervals as the Agent may elect, provided
that if the Cash Concentration Account Bank does not receive directions from the Agent to transfer
such cash to its Agent’s Account on or before Thursday of any week, the Cash Concentration Account
Bank shall be instructed to transfer such cash to such Borrower’s operating account on the
immediately following Friday, (iv) authorize, and the Companies do hereby authorize, the Agent to
cause all funds transferred to the Agent Account to be credited to the Loan Account and applied to
reduce the Obligations outstanding from time to time in accordance with Section 2.07 hereof, (v)
take all such actions as the Agent deems necessary or advisable to send all cash, all proceeds from
the sale of Inventory, all remittances or other proceeds of Collateral to the Agent Account to be
applied to the Obligations as described in clauses (i) through (v) above, (vi) on or before the
Effective Date, deliver to the Agent (A) Depository Account Agreements executed by the relevant
Loan Party and each Depository Bank, and (B) a Cash Concentration Account Agreement executed by the
Borrower and the Cash Concentration Account Bank, (vi) take such other actions as the Agent deems
necessary or advisable to grant to the Agent dominion and control over the funds in the Depository
Accounts and the Cash Concentration Account, (vii) notify the Agent in writing not later than five
Business Days prior to the establishment of any new Depository Accounts, and (viii) cause to be
delivered to the Agent, prior to the deposit of any funds in such new Depository Account, a
Depository Account Agreement, in form and substance satisfactory to the Agent, duly executed by the
Borrower and such new Depository Account Bank. Notwithstanding the foregoing, the Borrower may
maintain operating accounts with commercial banks located near the Refinery with aggregate deposits
not in excess of $1,000,000 at any time.

               (n) Immaterial Subsidiaries. If at any time the gross book value of the assets of the
Immaterial Companies shall exceed 25% of the consolidated assets of Alon USA and its Consolidated
Subsidiaries as of the most recent fiscal quarter in respect of which financial statements have
been delivered pursuant to Section 7.01, the Borrower shall designate sufficient Immaterial
Companies as “Material Companies” to eliminate such condition, such designation to occur
not later than the 20th day after the earlier of (i) the delivery pursuant to Section 7.01(a)(i) or
(ii) of financial statements of Alon USA and its Consolidated Subsidiaries for the period during
which the condition requiring such designation shall first have existed and (ii) in the event such
condition exists as a result of an acquisition, disposition or transfer to any Subsidiary of
material assets or Capital Stock, the date of such acquisition, disposition or transfer (and if the

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Borrower shall fail to designate such Subsidiaries by such time, Immaterial Companies shall
automatically become Material Companies in descending order based on the amounts of their
consolidated assets until such condition shall have been eliminated). Subsidiaries designated as
or otherwise becoming Material Companies pursuant to the preceding sentence shall for all purposes
of this Agreement cease to be Immaterial Companies and constitute Material Companies.

          Section 7.02 Negative Covenants. So long as any principal of or interest on the
Revolving Credit Loans, any Reimbursement Obligation or any Letter of Credit Obligations (whether
or not due) shall remain unpaid or any Lender shall have any Revolving Credit Commitment hereunder,
the Companies (other than the Parent) will not without the prior written consent of the Required
Lenders:

               (a) Liens, Etc. Create or suffer to exist, or permit any of their Subsidiaries (other
than Subsidiaries of Alon Interests) to, create or suffer to exist, any Lien upon or with respect
to any of their properties, rights or other assets, whether now owned or hereafter acquired, or
assign or otherwise transfer, or permit any of its Subsidiaries to assign or otherwise transfer,
any right to receive income, other than the following (each, a “Permitted Lien”):

               (i) Liens created pursuant to the Loan Documents;

               (ii) Liens for taxes, assessments or governmental charges or levies to the extent that
the payment thereof shall not be required by Section 7.01(c) hereof;

               (iii) Liens created by operation of law (other than Liens created under Environmental
Laws), such as materialmen’s liens, mechanics’ liens and other similar Liens, arising in the
ordinary course of business and securing claims the payment of which shall not be required
by Section 7.01(c) hereof;

               (iv) deposits, pledges or Liens (other than Liens arising under ERISA or the Internal
Revenue Code) securing (A) obligations incurred in respect of workers’ compensation,
unemployment insurance or other forms of governmental insurance or benefits, (B) the
performance of bids, tenders, leases, contracts (other than for the payment of money) and
statutory obligations, or (C) obligations on surety or appeal bonds, but only to the extent
such deposits, pledges or Liens are incurred or otherwise arise in the ordinary course of
business and secure obligations which are not past due;

               (v) easements, rights-of-way, zoning and similar restrictions and other similar charges
and encumbrances on the use of real property and minor irregularities in the title thereto
which do not (A) secure obligations for the payment of money or (B) materially impair the
value of such property or materially impair the use thereof by any of the Companies or any
of their Subsidiaries in the normal conduct of such Person’s business;

               (vi) Liens on the Fixed Assets and the License Agreement, provided such Liens
are subject to an intercreditor agreement, in form and substance

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reasonably satisfactory to the Agent and the Lenders and, in the case of Lien on the License Agreement,
subject to the WC Collateral Agent having a second priority Lien on the License Agreement; and

     (vii) so long as no Event of Default has occurred or is continuing or will result from
the creation or existence of any such Liens and such Liens do not encumber or otherwise
cover any of the Collateral securing the Obligations hereunder and under the other Loan
Documents (other than with respect to the License Agreement), other Liens (whether in one
transaction or in a series of related transactions) (A) securing obligations, actual or
contingent, in an aggregate amount not to exceed $25,000,000 at any time outstanding, or (B)
securing obligations, actual or contingent, in an aggregate amount greater than $25,000,000,
provided that prior to the creation or existence or incurrence of any such Lien the Borrower
delivers to the Agent a certificate of a Responsible Officer of the Borrower, certifying
that (I) immediately before and after the creation or incurrence of any such Liens, no Event
of Default has occurred or is continuing or will result from the creation or incurrence of
any such Liens, (II) as of the last Fiscal Quarter for which financial statements were
delivered to the Lenders pursuant to Section 7.01(a)(i), on a pro forma basis after giving
effect to such creation or incurrence of Indebtedness, Liens or other obligations as if it
had occurred at the beginning of the most recent fiscal period of four Fiscal Quarters for
which such financial statements were delivered, Alon USA and its Consolidated Subsidiaries
would be in compliance with the covenants contained in Section 7.02(i) hereof (which
certification shall set forth in reasonable detail the Borrower’s calculations, shall be
prepared both on a reasonable basis and in good faith and based on assumptions believed by
the Borrower to be reasonable at the time made), and (III) such Liens do not encumber the
Collateral securing the Obligations hereunder and under the other Loan Documents.

          (b) Indebtedness. Create, incur, assume, guarantee or suffer to exist, or otherwise
become or remain liable with respect to, or permit any of their Subsidiaries (other than any
Subsidiaries of Alon Interests) to create, incur, assume, guarantee or suffer to exist, or
otherwise become or remain liable with respect to, any Indebtedness (each an “incurrence”), (i) if
an Event of Default has occurred or is continuing or will result from the incurrence of any such
Indebtedness, (ii) if such Indebtedness is owed to an Affiliate unless such Affiliate is a party to
the Subordination Agreement (Intercompany), or (iii) in an aggregate principal amount in excess of
$25,000,000 (whether in one transaction or in a series of related transactions), unless prior to
the incurrence of such Indebtedness, the Borrower delivers to the Agent a certificate of a
Responsible Officer of the Borrower, certifying that (A) immediately before and after the
incurrence of any such Indebtedness, no Event of Default has occurred or is continuing or will
result from the incurrence of any such Indebtedness and (B) as of the last Fiscal Quarter for which
financial statements were delivered to the Lenders pursuant to Section 7.01(a)(i), on a pro forma
basis after giving effect to such incurrence of Indebtedness, as if it had occurred at the
beginning of the most recent fiscal period of four Fiscal Quarters for which such financial
statements were delivered, Alon USA and its Consolidated Subsidiaries would be in compliance with
the covenants contained in Section 7.02(i) hereof (which certification shall set forth in
reasonable detail the Borrower’s calculations, shall be prepared both on a reasonable basis and in
good faith and based on assumptions believed by the Borrower to be reasonable at the time made).

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          (c) Merger, Consolidation, Sale of Assets, Etc.

     (i) Merge or consolidate with any Person, or permit any of their Subsidiaries to merge
or consolidate with any Person (each a “Merger”), unless (A) no Change of Control
will result from such Merger, (B) no Event of Default exists immediately prior to such
Merger or will result therefrom, (C) in any Merger involving the Borrower, the Borrower
shall be the surviving Person and the surviving Person shall expressly assume all
Obligations of the Borrower under this Agreement and the other Loan Documents pursuant to
such agreements and other documents, each in form and substance reasonably satisfactory to
the Agent, as the Agent may reasonably require, (D) the WC Collateral Agent’s security
interest in all of the Collateral shall remain a perfected first priority security, securing
the Obligations, free and clear of all other Liens (other than Permitted Liens), and the
Companies shall have taken all actions necessary or reasonably requested by the WC
Collateral Agent to maintain or protect the WC Collateral Agent’s security interest, and (E)
in the event that the aggregate net book value of the assets of such Person and its
Consolidated Subsidiaries subject to and after giving effect to such Merger (whether in one
transaction or a series of related transactional) exceeds $25,000,000, the Borrower delivers
to the Agent a certificate of a Responsible Officer of the Borrower, certifying that (I)
immediately before and after giving effect to any such Merger, no Event of Default has
occurred or is continuing or will result from any such Merger, (II) as of the last Fiscal
Quarter for which financial statements were delivered pursuant to Section 7.01(a)(i), on a
pro forma basis after giving effect to any such Merger as if it had occurred at the
beginning of the most recent fiscal period of four Fiscal Quarters for which such financial
statements were delivered, Alon USA and its Consolidated Subsidiaries would be in compliance
with the covenants contained in Section 7.02(i) hereof, (III) no Change of Control shall
occur as a result of and after giving effect to such Merger and (IV) as of the date of the
last Borrowing Base Certificate delivered to the Agent pursuant to Section 7.01(a)(ix), on a
pro forma basis after giving effect to such Merger as if it had occurred as of the date of
such Borrowing Base Certificate, the sum of (x) the aggregate principal amount of all
outstanding Revolving Credit Loans, plus (y) the outstanding amount of all Letter of Credit
Obligations does not exceed the Borrowing Base (which, with respect to the certifications in
clause (II) and (IV), shall set forth in reasonable detail the Borrower’s calculations,
shall be prepared both on a reasonable basis and in good faith and based on assumptions
believed by the Borrower to be reasonable at the time made), then such Merger shall be
permitted; provided further, however, that any Company (other than the
Borrower) may be merged into any other Company (other than the Borrower) or another such
Subsidiary (other than the Borrower) that is a Guarantor Company, or may consolidate with
another such Subsidiary that is a Guarantor Company, so long as (A) no other provision of
this Agreement would be violated thereby, (B) the Companies give the Agent at least 60 days’
prior written notice of such merger or consolidation and which entity will survive in any
such merger or consolidation and (C) no Event of Default shall have occurred and be
continuing either before or after giving effect to such transactions.

     (ii) Sell, assign, lease, pledge, encumber or otherwise transfer or dispose of, or
permit any of its Subsidiaries to sell, assign, lease, pledge, encumber or otherwise
transfer or dispose of, whether in one transaction or in a series of related

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transactions, any of its properties, rights or other assets whether now owned or
hereafter acquired to any Person (each a “Disposition”), provided that:

          (A) the Loan Parties may sell Inventory in the ordinary course of business;

          (B) the Fixed Assets shall be leased to the Borrower in accordance with the Lease
Documents and may be encumbered in accordance with Section 7.02(a); and

          (C) the Companies may make any other Disposition, provided that (I) no Event of
Default has occurred or is continuing or will result from any such Disposition, (II) the
Refinery is not the subject of any such Disposition, (III) the WC Collateral Agent’s
security interest in all of the Collateral shall remain a perfected first priority security,
securing the Obligations, free and clear of all other Liens (other than Permitted Liens),
and the Companies shall have taken all actions necessary or reasonably requested by the WC
Collateral Agent to maintain or protect the WC Collateral Agent’s security interest, and (V)
the aggregate Net Proceeds of any such Disposition or series of related Dispositions do not
exceed $25,000,000 in the aggregate, unless prior to making such Disposition in excess of
$25,000,000, the Borrower delivers to the Agent a certificate of a Responsible Officer of
the Borrower, certifying that (1) immediately before and after giving effect to any such
Disposition, no Event of Default has occurred or is continuing or will result from any such
Disposition (2) as of the last Fiscal Quarter for which financial statements were delivered
pursuant to Section 7.01(a)(i), on a pro forma basis after giving effect to any such
Disposition as if it had occurred at the beginning of the most recent fiscal period of four
Fiscal Quarters for which such financial statements were delivered, Alon USA and its
Consolidated Subsidiaries would be in compliance with the covenants contained in Section
7.02(i) hereof, (3) no Change of Control shall occur as a result of and after giving effect
to such Disposition and (4) as of the date of the last Borrowing Base Certificate delivered
to the Agent pursuant to Section 7.01(a)(ix), on a pro forma basis after giving effect to
such Disposition as if it had occurred as of the date of such Borrowing Base Certificate,
the sum of (x) the aggregate principal amount of all outstanding Revolving Credit Loans,
plus (y) the outstanding amount of all Letter of Credit Obligations does not exceed the
Borrowing Base (which, with respect to the certifications in clause (2) and (4), shall set
forth in reasonable detail the Borrower’s calculations, shall be prepared both on a
reasonable basis and in good faith and based on assumptions believed by the Borrower to be
reasonable at the time made).

          (d) Change in Nature of Business. Make, or permit any of their Subsidiaries to make,
any material change in the nature of its business as carried on at the date hereof and as specified
in Section 6.01(m).

          (e) Investments, Etc. Make, or permit any of their Subsidiaries (other than any
Subsidiaries of Alon Interests) to make, any loan or advance to any Person (including, without
limitation, intercompany loans) or purchase or otherwise acquire, or permit any of their
Subsidiaries to purchase or otherwise acquire, any Capital Stock, other securities, properties,

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assets or obligations of, or any interest in, any Person (in each case, an
“Investment”), other than (i) Permitted Investments, (ii) so long as no Event of Default
has occurred or is continuing or will result from any such Investment, any Investment or series of
related Investments that do not exceed an amount equal to $25,000,000 in the aggregate, and (iii)
so long as no Event of Default has occurred or is continuing or will result from any such
Investment, any Investment or series of related Investments that exceeds $25,000,000 in the
aggregate, provided that, prior to making any such Investment, the Borrower delivers to the
Agent a certificate of a Responsible Officer of the Borrower, certifying that (A) immediately
before and after giving effect to any such Investment, no Event of Default has occurred or is
continuing or will result from any such Investment and (B) as of the last Fiscal Quarter for which
financial statements were delivered pursuant to Section 7.01(a)(i), on a pro forma basis after
giving effect to any such Investment as if it had occurred at the beginning of the most recent
fiscal period of four Fiscal Quarters for which such financial statements were delivered, Alon USA
and its Consolidated Subsidiaries would be in compliance with the covenants contained in Section
7.02(i) hereof (which certification shall set forth in reasonable detail the Borrower’s
calculations, shall be prepared both on a reasonable basis and in good faith and based on
assumptions believed by the Borrower to be reasonable at the time made).

          (f) Dividends, Prepayments, Etc. Declare or pay any dividends, purchase or otherwise
acquire for value any of its Capital Stock now or hereafter outstanding, return any capital to its
stockholders as such, or make any other payment or distribution of assets to its stockholders as
such, or permit any of its Subsidiaries to do any of the foregoing or to purchase or otherwise
acquire for value any stock of any Loan Party, make any payment or prepayment of principal of,
premium, if any, or interest on, or redeem, defease or otherwise retire, any Indebtedness of any
Loan Party before its scheduled due date (other than prepayments of Indebtedness under the Loan
Documents) (in each case, a “Restricted Payment”), other than, (i) so long as no Event of
Default has occurred or is continuing or will result from any such Restricted Payment, Restricted
Payments in an amount not to exceed $25,000,000 in the aggregate, and (ii) so long as no Event of
Default has occurred or is continuing or will result from any such Restricted Payment, any
Restricted Payment that exceeds $25,000,000 in the aggregate, provided that prior to making
any such Restricted Payment, the Borrower delivers to the Agent a certificate of a Responsible
Officer of the Borrower, certifying that (A) immediately before and after giving effect to any such
Restricted Payment, no Event of Default has occurred or is continuing or will result from the
Restricted Payment and (B) as of the last Fiscal Quarter for which financial statements were
delivered pursuant to Section 7.01(a)(i), on a pro forma basis after giving effect to any such
Restricted Payment as if it had occurred at the beginning of the most recent fiscal period of four
Fiscal Quarters for which such financial statements were delivered, Alon USA and its Consolidated
Subsidiaries would be in compliance with the covenants contained in Section 7.02(i) hereof (which
certification shall set forth in reasonable detail the Borrower’s calculations, shall be prepared
both on a reasonable basis and in good faith and based on assumptions believed by the Borrower to
be reasonable at the time made).

          (g) Federal Reserve Regulations. Permit any Revolving Credit Loan or the proceeds of
any Revolving Credit Loan under this Agreement to be used for any purpose which violates or is
inconsistent with the provisions of Regulation T, U or X of the Board of Governors of the Federal
Reserve System.

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          (h) Environmental. Permit the use, handling, generation, storage, treatment, Release
or disposal of Hazardous Materials at any property owned or leased by the Companies except in
material compliance with Environmental Laws and so long as any failure to comply with Environmental
Laws governing such use, handling, generation, storage, treatment, release or disposal of Hazardous
Materials does not result in a Material Adverse Effect.

          (i) Financial Covenants.

     (i) Minimum Tangible Net Worth. Permit Consolidated Tangible Net Worth of Alon
USA and its Consolidated Subsidiaries at any time to be less than Target Net Worth at such
time.

     (ii) Funded Debt to EBITDA. Permit the ratio of (A) the aggregate principal
amount of all outstanding Indebtedness for borrowed money of Alon USA and its Consolidated
Subsidiaries as of the end of any period of four Fiscal Quarters, less freely transferable
cash and Permitted Investments of Alon USA and its Consolidated Subsidiaries not subject to
any Lien (other than a Lien in favor of the Agent) as of the end of such period of four
Fiscal Quarters, to (B) Consolidated EBITDA of Alon USA and its Consolidated Subsidiaries
for such period of four Fiscal Quarters, to be greater than 4.0 to 1.0.

     Solely for the purposes of calculating the ratio set forth above, if, at the time the
ratio is being determined, either Alon USA or any of its Subsidiary shall have completed any
Disposition, Merger, incurrence of Indebtedness, Investment or Restricted Payment (or series
of related Dispositions, Mergers, incurrence of Indebtedness, Investments or Restricted
Payments) exceeding $25,000,000 in the aggregate since the beginning of the relevant four
Fiscal Quarter period, the ratio shall be determined on a pro forma basis as if such
Disposition, Merger, incurrence of Indebtedness, Investment or Restricted Payment, had
occurred at the beginning of such period.

     (iii) Current Ratio. Permit the ratio of Consolidated Current Assets to
Consolidated Current Liabilities of Alon USA and its Consolidated Subsidiaries to be less
than 1.0:1.0 at any time.

     (iv) Interest Coverage Ratio. Permit the ratio (the “Interest Coverage
Ratio”) of (A) Consolidated EBITDA of Alon USA and its Consolidated Subsidiaries, to (B)
interest expense of Alon USA and its Consolidated Subsidiaries payable for such period, in
each case as of the end of any period of four Fiscal Quarters, to be less than 2.0:1.0.

          (j) Fiscal Periods. Change the Fiscal Months, Fiscal Years and Fiscal Quarters as set
forth on Schedule C hereto, except as otherwise agreed to in writing by the Agent.

          (k) Amendment or Waiver of Documents. Agree to any amendment or other change to (or
make any payment consistent with any amendment or other change to), or waive any of its rights
under, any of the Lease Documents, provided that such consent shall not

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be required if (A) no Default or Event of Default exists or will result from such amendment,
modification, waiver or change and (B) such amendment, modification, waiver or change is not
adverse to the interests of the Lenders in any material respect and does not provide for terms more
restrictive in any material respect.

          (l) Restrictive Agreements. Enter into, incur or permit to exist any agreement or
other arrangement that prohibits, restricts or imposes any condition upon (i) the ability of the
Companies to create, incur or permit to exist any Lien upon any of the Collateral (other than
Permitted Liens), or (ii) the ability of any Company (other than an Immaterial Company) to pay
dividends or other distributions with respect to any of its Capital Stock or to make or repay loans
or advances to the Companies or any other Subsidiary or to guaranty Indebtedness of a Company or
any other Subsidiary; provided that the foregoing shall not apply to (A) restrictions and
conditions imposed by law or by any Loan Document, (B) customary restrictions and conditions
contained in agreements relating to the sale of a Company pending such sale, provided that such
restrictions and conditions apply only to the Company that is to be sold and such sale is permitted
hereunder, (C) clause (i) of the foregoing shall not apply to restrictions or conditions imposed by
any agreement relating to secured Indebtedness or Capitalized Lease Obligations permitted by this
Agreement if such restrictions or conditions apply only to the property or assets securing such
Indebtedness or Capitalized Lease Obligations and (D) clause (i) of the foregoing shall not apply
to customary provisions in leases and other contracts restricting the assignment thereof.

          (m) Modifications of Organizational Documents and Certain Other Agreements; Etc.
Amend, modify or otherwise change its name, jurisdiction of organization, organizational
identification number or FEIN unless the WC Collateral Agent receives (i) in the case of the
Borrower and Alon USA, at least 30 days’ prior written notice thereof, or (ii) in the case of any
other Company, at least 10 Business Days’ prior written notice thereof.

          (n) Hedging Agreements. Enter into any Hedging Agreements other than Hedging
Agreements which (i) are entered into in the ordinary course of business for nonspeculative
purposes and (ii) are disclosed in each report required to be delivered to the Agent under Section
7.01(a)(ix) hereof.

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ARTICLE VIII

MANAGEMENT, COLLECTION AND STATUS OF

ACCOUNTS RECEIVABLE AND OTHER COLLATERAL.

     Section 8.01 Management of Collateral

          (a) After the occurrence and during the continuance of an Event of Default, the WC Collateral
Agent may for the benefit of the Lenders send a notice of assignment and/or notice of the WC
Collateral Agent’s security interest to any and all Account Debtors or any third party holding or
otherwise concerned with any of the Collateral, and thereafter the WC Collateral Agent on behalf of
the Lenders shall have the sole right to collect the Accounts Receivable and/or take possession of
the Collateral and the books and records relating thereto. The Borrower shall not, without prior
written consent of the Agent, grant any extension of time of payment of any Account Receivable,
compromise or settle any Account Receivable for less than the full amount thereof, release, in
whole or in part, any Person or property liable for the payment thereof, or allow any credit or
discount whatsoever thereon, except prior to the occurrence and during the continuance of an Event
of Default, in the ordinary course of business.

          (b) (i) The Companies hereby appoint the WC Collateral Agent and the Agent or their designee
as the Companies attorney-in-fact with power to endorse any Company’s name upon any notes,
acceptances, checks, drafts, money orders or other evidences of payment or Collateral that may come
into its possession, to sign the Borrower’s name on any invoice or bill of lading relating to any
of the Accounts Receivable, drafts against Account Debtors, assignments and verifications of
Accounts Receivable and notices to Account Debtors, to send verification of Accounts Receivable,
and upon the occurrence and during the continuance of an Event of Default, to notify the Postal
Service authorities to change the address for delivery of mail addressed to the Borrower to such
address as the Agent may designate and to do all other acts and things necessary to carry out this
Agreement. All acts of said attorney or designee are hereby ratified and approved, and said
attorney or designate shall not be liable for any acts of omission or commission (other than acts
or omissions constituting gross negligence or willful misconduct as determined by a final judgment
of a court of competent jurisdiction), nor for any error of judgment or mistake of fact or law;
this power being coupled with an interest is irrevocable until all of the Revolving Credit Loans
and any other Obligations under the Loan Documents are paid in full and all of the Revolving Credit
Commitments are terminated.

         (ii) The Agent and the WC Collateral Agent, without notice to or consent of the
Borrower, upon the occurrence and during the continuance of an Event of Default (A) may sue
upon or otherwise collect, extend the time of payment of, or compromise or settle for cash,
credit or otherwise upon any terms, any of the Accounts Receivable or any securities,
instruments or insurance applicable thereto and/or release the Account Debtor thereon; (B)
is authorized and empowered to accept the return of the fuel, fuel-by products or other
goods represented by any of the Accounts Receivable, and (C) shall have the right to
receive, endorse, assign and/or deliver in its name or the name of any Company any and all
checks, drafts, and other instruments for the payment of money relating to the Accounts
Receivable. The Borrower’s hereby waive notice of presentment, protest and non-payment of
any instrument so endorsed, all in a

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commercially reasonable manner and without discharging or in any way affecting
liability hereunder.

          (c) Nothing herein contained shall be construed to constitute any Company as agent of the
Agent, the WC Collateral Agent or the Lenders for any purpose whatsoever, and the Agent, the WC
Collateral Agent and the Lenders shall not be responsible or liable for any shortage, discrepancy,
damage, loss or destruction of any part of the Collateral wherever the same may be located and
regardless of the cause thereof (other than from acts or omissions of the Agent, the WC Collateral
Agent and the Lenders constituting gross negligence or willful misconduct as determined by a final
judgment of a court of competent jurisdiction). The Agent, the WC Collateral Agent or the Lenders
shall not, under any circumstances or in any event whatsoever, have any liability for any error or
omission or delay of any kind occurring in the settlement, collection or payment of any of the
Accounts Receivable or any instrument received in payment thereof or for any damage resulting
therefrom (other than acts or omissions of the Agent, the WC Collateral Agent or the Lenders
constituting gross negligence or willful misconduct as determined by a final judgment of a court of
competent jurisdiction). The Agent, the WC Collateral Agent and the Lenders, by anything herein or
in any assignment or otherwise, do not assume any of the Companies’ obligations under any contract
or agreement assigned to the Agent or the WC Collateral Agent and the Agent, the WC Collateral
Agent or the Lenders shall not be responsible in any way for the performance by the Companies of
any of the terms and conditions thereof.

          (d) If any of the Accounts Receivable includes a charge for any tax payable to any
Governmental Authority, the Agent is hereby authorized (but in no event obligated) in its
discretion to pay the amount thereof to the proper taxing authority for the Borrower’ account and
to charge the Loan Account therefor. The Borrower shall notify the Agent if any Accounts
Receivable include any taxes due to any such authority and, in the absence of such notice, the
Agent shall have the right to retain the full proceeds of such Accounts Receivable and shall not be
liable for any taxes that may be due from such Company by reason of the sale and delivery creating
such Accounts Receivable.

     Section 8.02 Accounts Receivable Documentation. The Borrower will at such intervals as
the Agent may reasonably require, execute and deliver confirmatory written assignments of the
Accounts Receivable to the Agent and furnish such further schedules and/or information as the Agent
may reasonably require relating to the Accounts Receivable, including, without limitation, sales
invoices or the equivalent, credit memos issued, remittance advises, reports and copies of deposit
slips and copies of original shipping or delivery receipts for all merchandise sold. In addition,
the Borrower shall notify the Agent of any non-compliance in respect of the representations,
warranties and covenants contained in Section 8.03 below. The items to be provided under this
Section 8.02 are to be in form reasonably satisfactory to the Agent and are to be executed and
delivered to the Agent from time to time solely for its convenience in maintaining records of the
Collateral. The Borrower’s failure to give any such items to the Agent or the WC Collateral Agent
shall not affect, terminate, modify or otherwise limit the WC Collateral Agent’s Lien in the
Collateral. The Borrower shall not re-date any invoice or sale or make sales on extended dating
beyond that customary in the Borrower’s industry, and shall not re-bill any Accounts Receivable
without promptly disclosing the same to the Agent and providing the Agent with copy of such
re-billing, identifying the same as such. If

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the Borrower become aware of anything materially detrimental to any of the Borrower’s
customers’ credit, the Borrower will promptly advise the Agent thereof.

     Section 8.03 Status of Accounts Receivable and Other Collateral. With respect to
Collateral of any Company at the time such Collateral becomes subject to a Collateral Agent’s
security interests, such Company covenants, represents and warrants: (a) the Company shall be the
sole owner, free and clear of all Liens except the Lien in the favor of such Collateral Agent for
the benefit of the Lenders or except as otherwise permitted hereunder, fully authorized to sell,
transfer, pledge and/or grant a security interest in each and every item of said Collateral; (b) to
the knowledge of the Borrower, at the time created, each Account Receivable shall be a good and
valid account representing an undisputed bona fide indebtedness incurred or an amount indisputably
owed by the Account Debtor therein named, for a fixed sum as set forth in the invoice relating
thereto with respect to an absolute sale and delivery upon the specified terms of goods sold by the
Borrower or work, labor and/or services theretofore rendered by the Borrower; (c) to the best
knowledge of the Borrower and except as otherwise disclosed to the Agent, no Account Receivable is
subject to any defense, offset, counterclaim, discount or allowance except as may be stated in the
invoice relating thereto or discounts and allowances as may be customary in the Borrower’s
business, and, each of such Accounts Receivable will be paid when due; (d) none of the transactions
underlying or giving rise to any Accounts Receivable shall violate any applicable state or federal
laws or regulations, and all documents relating thereto shall be legally sufficient under such laws
or regulations and shall be legally enforceable in accordance with their terms; (e) except as
disclosed to the Agent, no agreement under which any deduction or offset of any kind, other than
normal trade discounts, may be granted or shall have been made by the Borrower at or before the
time such Accounts Receivable is created; (f) all documents and agreements relating to Accounts
Receivable shall be true and correct and in all respects what they purport to be; (g) to the best
knowledge of the Borrower, all signatures and endorsements that appear on all documents and
agreements relating to Accounts Receivable shall be genuine and all signatories and endorsers shall
have full capacity to contract; (h) the Companies shall maintain books and records pertaining to
said Collateral in such detail, form and scope as the Agent shall reasonably require; (i) the
Borrower will immediately notify the Agent if any of its accounts arise out of contracts with the
United States or any department, agency, or instrumentality thereof and will execute any
instruments and take any steps reasonably required by the Agent in order that all monies due or to
become due under any such contract shall be assigned to the WC Collateral Agent and notice thereof
given to the United States Government under the Federal Assignment of Claims Act; (j) the Companies
will, within three Business Days of learning thereof, report to the Agent any material loss or
destruction of, or substantial damage to, any of the Collateral, and any other matters affecting
the value, enforceability or collectibility of any of the Collateral; (k) if any amount payable
under or in connection with any Account Receivable is evidenced by a promissory note or other
instrument, as such term is defined in the Uniform Commercial Code, such promissory note or
instrument shall be pledged, endorsed, assigned and delivered to the WC Collateral Agent as
additional Collateral within three Business Days; (l) the Borrower shall not redate any invoice or
sale or make sales on extended dating beyond that which is customary in the ordinary course of its
business and in the relevant industry; (m) the Borrower shall conduct a physical count of its
Inventory at such intervals as the Agent may reasonably request and the Borrower shall promptly
supply the Agent with a copy of such count accompanied by a report of the value (based on market
value) of such Inventory; and

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(n) the Companies are not and shall not be entitled to pledge the Agent’s or the Lenders’
credit on any purchases for or any purpose whatsoever.

     Section 8.04 Collateral Custodian. Upon the occurrence and during the continuance of
an Event of Default, the WC Collateral Agent may at any time and from time to time employ and
maintain in the premises of the Companies a custodian selected by the WC Collateral Agent who shall
have full authority to do all acts necessary to protect the WC Collateral Agent’s interests. The
Companies hereby agree to cooperate with any such custodian and to do whatever the WC Collateral
Agent may reasonably request to preserve the Collateral. All reasonable costs and expenses
incurred by the WC Collateral Agent, by reason of the employment of the custodian, shall be charged
to the Loan Account.

ARTICLE IX

THE AGENT

     Section 9.01 Authorization and Action. Each Lender (and each subsequent holder of any
Revolving Credit Notes by its acceptance thereof) hereby irrevocably appoints and authorizes IDB,
in its capacity as the Agent, (i) to receive on behalf of each Lender any payment of principal of
or interest on the Revolving Credit Notes outstanding hereunder and all other amounts accrued
hereunder paid to the Agent, and, subject to Section 2.05 of this Agreement and the other
provisions of this Agreement, to distribute promptly to each Lender its Pro Rata Share of all
payments so received, (ii) to distribute to each Lender, if so determined by the Agent, copies of
all material notices and agreements received by the Agent and not required to be delivered to each
Lender pursuant to the terms of this Agreement, and (iii) subject to Section 12.03 of this
Agreement, to take such action as the Agent deems appropriate on its behalf to administer the
Revolving Credit Loans, Letters of Credit and the Loan Documents and to exercise such other powers
delegated to the Agent by the terms hereof or the Loan Documents (including, without limitation,
the power to give or to refuse to give notices, waivers, consents, approvals and instructions and
the power to make or to refuse to make determinations and calculations), together with such powers
as are reasonably incidental thereto to carry out the purposes hereof and thereof. As to any
matters not expressly provided for by this Agreement and the other Loan Documents (including,
without limitation, enforcement or collection of the Revolving Credit Notes), the Agent shall not
be required to exercise any discretion or take any action, but shall be required to act or to
refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the
instructions of the Required Lenders, and such instructions of the Required Lenders shall be
binding upon all Lenders and all holders of Revolving Credit Notes; provided,
however, that the L/C Issuer shall not be required to refuse to honor a drawing under any
Letter of Credit and the Agent shall not be required to take any action which, in the reasonable
opinion of the Agent, exposes the Agent to liability or which is contrary to this Agreement or any
Loan Document or applicable law.

     Section 9.02 Borrower’s Default. In the event that (i) the Borrower fails to pay when
due the principal of or interest on any Revolving Credit Notes, Revolving Credit Loan or any
Reimbursement Obligation or any amount payable hereunder, or (ii) the Agent receives written notice
of the occurrence of an Event of Default, the Agent shall promptly give written notice thereof to
the Lenders, and the Agent shall take such action with respect to such Event of

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Default as it shall be directed to take by the Required Lenders; provided,
however, that, unless and until the Agent shall have received such directions and except as
otherwise expressly provided in this Agreement, the Agent may take such action or refrain from
taking such action hereunder or under the other Loan Documents with respect to an Event of Default
or Default, as it shall deem advisable in the best interest of the Lenders.

     Section 9.03 Reliance, Etc. None of the Agent or any of its directors, officers,
agents, Affiliates or employees shall be liable for any action taken or omitted to be taken by it
under or in connection with this Agreement or the other Loan Documents, except for its own gross
negligence or willful misconduct as determined by a final judgment of a court of competent
jurisdiction. Without limiting the generality of the foregoing, the Agent (i) may treat the payee
of any Revolving Credit Notes as the holder thereof until the Agent receives written notice of the
assignment or transfer thereof, pursuant to Section 12.08 hereof, signed by such payee and in form
satisfactory to it; (ii) may consult with legal counsel (including, without limitation, counsel to
the Borrower), independent public accountants, and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good faith by it in accordance with the
advice of such counsel, accountants or experts; (iii) makes no warranty or representation to any
Lender and shall not be responsible to any Lender for any statements, certificates, warranties or
representations made in or in connection with this Agreement or the other Loan Documents; (iv)
shall not have any duty to ascertain or to inquire as to the performance or observance of any of
the terms, covenants or conditions of this Agreement or the other Loan Documents on the part of any
Person or to inspect the Collateral or other property (including, without limitation, the books and
records) of any Person; (v) shall not be responsible to any Lender for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement or the other Loan
Documents or any other instrument or document furnished pursuant hereto or thereto; (vi) shall not
be deemed to have made any representation or warranty regarding the existence, value or
collectibility of the Collateral, the existence, priority or perfection of the Lenders’ Lien
thereon, or the Borrowing Base or any certificate prepared by the Borrower in connection therewith,
nor shall the Agent be responsible or liable to the Lenders for any failure to monitor or maintain
the Borrowing Base or any portion of the Collateral, except for its own gross negligence or willful
misconduct as determined by a final judgment of a court of competent jurisdiction; and (vii) shall
incur no liability under or in respect of this Agreement or the other Loan Documents by acting upon
any notice, consent, certificate or other instrument or writing (which may be by telegram,
telecopy, cable or telex) believed by it to be genuine and signed or sent by the proper party or
parties.

     Section 9.04 IDB and Bank Leumi.

          (a) With respect to the Revolving Credit Loans made by it, the Revolving Credit Notes issued
to it and its participation in the Letters of Credit, IDB and its Affiliates shall have the same
rights and powers under this Agreement as any other Lender and may exercise the same as though it
were not the Agent, the WC Collateral Agent, a Co-Arranger or an L/C Issuer; and the term “Lender”
or “any Lenders” shall, unless otherwise expressly indicated, include IDB in its individual
capacity. IDB and its Affiliates may accept deposits from, lend money to, act as trustee or paying
agent under indentures of, and generally engage in any kind of business with, the Borrower or any
Guarantor, any of their Affiliates, or any Person who may do business with or own securities of the
Borrower or any Company, or any of their

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Affiliates, all as if IDB were not the Agent, the WC Collateral Agent, a Co-Arranger or an L/C
Issuer and without any duty to account therefor to any Lenders.

          (b) With respect to the Revolving Credit Loans made by it, the Revolving Credit Notes issued
to it and its participation in the Letters of Credit, Bank Leumi and its Affiliates shall have the
same rights and powers under this Agreement as any other Lender and may exercise the same as though
it were not a Co-Arranger or an L/C Issuer; and the term “Lender” or “any Lenders” shall, unless
otherwise expressly indicated, include Bank Leumi in its individual capacity. Bank Leumi and its
Affiliates may accept deposits from, lend money to, act as trustee or paying agent under indentures
of, and generally engage in any kind of business with, the Borrower or any Guarantor, any of their
Affiliates, or any Person who may do business with or own securities of the Borrower or any
Company, or any of their Affiliates, all as if Bank Leumi were not a Co-Arranger or an L/C Issuer
and without any duty to account therefor to any Lenders.

     Section 9.05 Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Agent or any other Lender, made its own credit analysis
and decision to enter into this Agreement. Each Lender also acknowledges that it will,
independently and without reliance upon the Agent or any other Lender and based on such documents
and information as it shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under this Agreement and the other Loan Documents.

     Section 9.06 Indemnification. Each Lender agrees to indemnify and hold harmless the
Agent and the WC Collateral Agent (to the extent not reimbursed by the Borrower or any Guarantor),
ratably according to the Pro Rata Shares of each Lender, from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted
against the Agent or the WC Collateral Agent in any way relating to or arising out of this
Agreement or the other Loan Documents or any action taken or omitted by the Agent or the WC
Collateral Agent under this Agreement or the other Loan Documents; provided,
however, that no Lender shall be liable to the Agent for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements for which there has been a final judicial determination that such resulted from the
Agent’s gross negligence or willful misconduct. Without limiting the foregoing, each Lender agrees
to reimburse the Agent and the WC Collateral Agent promptly upon demand for its ratable share of
any out-of-pocket expenses (including reasonable counsel fees, disbursements and other charges)
incurred by the Agent or the WC Collateral Agent in connection with the preparation, execution,
delivery, administration, modification, amendment or enforcement (whether through negotiation,
legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under,
this Agreement or the other Loan Documents, to the extent that the Agent or any WC Collateral
Agent, as applicable, is not reimbursed in full for such expenses by the Borrower. The obligations
of each Lender under this Section 9.06 shall survive the termination of this Agreement and the
other Loan Documents and the payment of all other obligations of the Agent, the WC Collateral Agent
and the Lenders under this Agreement and the other Loan Documents.

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     Section 9.07 Successor Agent. The Agent may resign at any time by giving written
notice thereof to the Lenders and the Borrower. Upon any such resignation, (i) Bank Leumi shall
have the right to become the successor Agent or to appoint one of its Affiliates to become the
successor Agent, with such rights and obligations hereunder as those previously held by the
retiring Agent, and (ii) if Bank Leumi does not choose to become the Agent or appoint the Agent
pursuant to clause (i), then the Borrower shall have the right to appoint a successor Agent
reasonably acceptable to Bank Leumi and the Required Lenders, with such rights and obligations
hereunder as those previously held by the retiring Agent, provided, the successor Agent may be
appointed by the Required Lenders without any consultation with or consent of the Companies or any
other Loan Party if an Event of Default or Default has occurred and is continuing. If no successor
Agent shall have been so appointed pursuant to clause (ii) above, and shall have accepted such
appointment, within 30 days after the retiring Agent’s giving of notice of resignation, then the
retiring Agent may, on behalf of the Lenders, appoint a successor Agent, which shall be a Lender or
a commercial bank or other financial institution organized under the laws of the United States of
America or any State thereof and having a combined capital and surplus of at least $500,000,000.
Upon the acceptance of any appointment as Agent hereunder by a successor Agent such successor Agent
shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of
the retiring Agent and the retiring Agent shall be discharged from its duties and obligations under
this Agreement and the other Loan Documents. After any retiring Agent’s resignation hereunder as
the Agent, the provisions of this Article IX shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was the Agent under this Agreement and the other Loan Documents.

     Section 9.08 Collateral Matters.

          (a) The Agent may from time to time, make such reasonable disbursements and advances
(“Agent Advances”) which the Agent, in its sole discretion, deems necessary or desirable to
preserve or protect the Collateral or any portion thereof, to enhance the likelihood or maximize
the amount of repayment by the Borrower, any Guarantor or other Person of the Revolving Credit
Loans, Reimbursement Obligations or Letters of Credit and other Obligations or to pay any other
amount chargeable to the Borrower or Guarantor pursuant to the terms of this Agreement, including,
without limitation, costs, fees and expenses as described in Section 12.05. The Agent Advances
shall be repayable on demand and be secured by the Collateral. The Agent Advances shall not
constitute Revolving Credit Loans but shall otherwise constitute Obligations hereunder. Without
limitation to its obligations pursuant to Section 9.06, each Lender agrees that it shall make
available to the Agent, upon the Agent’s demand, in Dollars in immediately available funds, the
amount equal to such Lender’s Pro Rata Share of each such Agent Advance. If such funds are not
made available to the Agent by such Lender the Agent shall be entitled to recover such funds, on
demand from such Lender together with interest thereon, for each day from the date such payment was
due until the date such amount is paid to the Agent, at the Federal Funds Rate for three Business
Days and thereafter at the Base Rate. The Agent shall use reasonable efforts to notify the
Borrower and the Lenders promptly after any such Agent Advance.

          (b) The Agent shall have no obligation whatsoever to any Lenders to assure that the Collateral
exists or is owned by the Borrower or any Guarantor or is cared for, protected or insured or has
been encumbered or that the Liens granted to the WC Collateral

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Agent herein or pursuant hereto have been properly or sufficiently or lawfully created,
perfected, protected or enforced or are entitled to any particular priority, or to exercise at all
or in any particular manner or under any duty of care, disclosure or fidelity, or to continue
exercising, any of the rights, authorities and powers granted or available to the Agent in this
Section 9.08 or in any of the Loan Documents, it being understood and agreed that in respect of the
Collateral, or any act, omission or event related thereto, any of the Agent and the WC Collateral
Agent may act in any manner it may deem appropriate, in its sole discretion, given the Agent’s and
the WC Collateral Agent’s own interest in the Collateral as one of the Lenders and that the Agent
and the WC Collateral Agent shall have no duty or liability whatsoever to any other Lender other
than for acts or omissions constituting gross negligence or willful misconduct as determined by a
final judgment of a court of competent jurisdiction.

          (c) The Lenders agree to authorize the WC Collateral Agent to release any Lien granted to or
held by the WC Collateral Agent upon any Collateral upon termination of the Revolving Credit
Commitments and payment and satisfaction of all Revolving Credit Loans and Letter of Credit
Obligations (whether or not due) and all other Obligations which have matured and which the Agent
has been notified in writing are then due and payable; or constituting property being sold or
disposed of in compliance with Section 7.02(c)(ii) hereof (and the WC Collateral Agent may rely
conclusively on any such certificate, without further inquiry); or constituting property in which
the Companies owned no interest at the time the Lien was granted or at any time thereafter; or
(except as otherwise provided in Section 12.03 of this Agreement) if approved, authorized or
ratified in writing by the Required Lenders. To the extent a Company sells or disposes of any
Collateral in accordance with Section 7.02(c)(ii) or with the consent of the Required Lenders, such
Collateral in each case shall be sold or otherwise disposed of free and clear of the Liens created
by the Loan Documents (it being understood that the Liens created by the Loan Documents shall
continue in all cash and noncash proceeds), and the WC Collateral Agent shall execute and deliver
such releases as the applicable Company may reasonably request to evidence the termination of such
Liens (which release shall not affect in any respect the obligations of any Loan Party under any
Loan Document, shall be at the sole cost and expense of such Company and shall be without
representation, warranty or recourse of any kind). Without in any manner limiting the WC
Collateral Agent’s authority to act without any specific or further authorization or consent by the
Required Lenders, upon request by the Collateral Agent at any time, the Lenders shall confirm in
writing the WC Collateral Agent’s authority to release particular contained in types or items of
Collateral pursuant to this Section 9.08(c).

          (d) Promptly after the fulfillment of each of the conditions precedents set forth in Section
5.01 the Agent shall (i) deliver to the Borrower all promissory notes and stock certificates in its
possession constituting Fixed Assets and specifically requested by the Borrower (or, if any such
note or certificate has been lost, a lost note affidavit or lost certificate affidavit,
provided that the failure of the Agent to turn such notes or certificates shall not result
in the Agent having any liability to the Borrower or any other Loan Party (except as expressly
provided in such lost note affidavit or lost certificate affidavit) or give rise to any right of
offset, counterclaim, set-off, reduction or other defense with respect to the Obligations, and (ii)
provide the Borrower with (A) a termination and release letter with respect to any Liens in favor
of the Agent or any of the Lenders (as Lenders or in any other capacity under the Existing
Revolving Credit Agreement) other than Liens on the Collateral, duly executed by the Agent and the

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Lenders, (B) a release of all mortgages filed by the Agent or any Lender in any capacity under
the Existing Revolving Credit Agreement, and (C) UCC-3 termination statements for all UCC-1
financing statements filed by or for the benefit of the Agent or any Lender, in any capacity and
covering any assets of the Parent and its Subsidiaries other than the Collateral, as the Borrower
may reasonably request, in all cases, in form and substance reasonably satisfactory to the WC
Collateral Agent (the “Termination and Releases”). The Termination and Releases shall be
provided by the Agent at the sole cost and expense of the Companies and shall be without
representation, warranty or recourse of any kind.

          (e) The Borrower may at any time request in writing that the Agent terminate the Guaranty to
which Alon Interests is a party. Promptly after receipt of any such request, the Agent agrees to
execute and deliver a termination, in form and substance reasonably satisfactory to the Agent, as
the Borrower may reasonably request to evidence the termination of the Guaranty to which Alon
Interests is a party (which termination shall not affect in any respect the obligations of any
other Loan Party under any Loan Document, shall be at the sole cost and expense of the Companies
and shall be without representation, warranty or recourse of any kind), provided that the
Agent shall have received the following, each in form and substance satisfactory to the Agent: (i)
an amendment to this Agreement, which shall, among other matters, (A) terminate the Guaranty by
Alon Interests, expressly provide that Alon Interests is no longer a party to this Agreement,
provide evidence to the satisfaction of the Agent and the Lenders that any Indebtedness (contingent
or otherwise) incurred by any Loan Party for the benefit of Alon Interests and its Subsidiaries
shall be included in the calculation of the financial covenants contained in Section 7.02(i) of
this Agreement, modify the financial covenants to, among other things, exclude any net income
attributable to Alon Interests and its Subsidiaries from any of the applicable financial covenants
to the extent necessary, and provide for the delivery of such financial statements as the Agent and
the Lenders may reasonably require to exclude the assets, liabilities, income, expenses and cash
flows of Alon Interests and its Subsidiaries, and (B) make such other amendments as the Agent and
the Lenders may deem necessary in their reasonable discretion, and (ii) such other agreements,
documents and opinions as Agent or the Required Lenders may reasonably request.

          (f) Without in any manner limiting the authority of the Agent to act without any specific or
further authorization or consent by the Required Lenders, upon request by the Agent at any time,
the Lenders shall confirm in writing the authority of the Agent to release the Guaranty of Alon
Interests pursuant to this Section 9.08.

ARTICLE X

EVENTS OF DEFAULT

     Section 10.01 Events of Default. If any of the following Events of Default shall
occur and be continuing:

          (a) The Borrower shall fail to pay (i) any principal on any Revolving Credit Loan, any Agent
Advance or any Reimbursement Obligation when due (whether by scheduled maturity, required
prepayment, acceleration, demand or otherwise) or (ii) any interest

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thereon or any fee or other amount when due under any Loan Document and, in the case of this
clause (ii), such failure shall continue unremedied for more than three Business Days;

          (b) Any representation or warranty made by any Loan Party or any officer of such Loan Party
under or in connection with any Loan Document shall have been incorrect in any material respect
when made;

          (c) (i) Any Loan Party shall fail to perform or observe (A) any covenant contained in
subparagraphs (i), (ii), (iii), (v), (vi), (vii) or (x) of Section 7.01(a) or Section 7.01(b)
hereof and such failure shall continue unremedied for more than 10 days, or (B) any covenant
contained in subsections (c), (e), (g), (j) or (n) of Section 7.01 hereof and such failure shall
continue unremedied for more than five days after the earlier of the date written notice of such
failure shall have been given by the Agent or the Required Lenders to such Loan Party or the
Borrower and the date a Responsible Officer of such Loan Party becomes aware of such failure or
(ii) any Company shall fail to perform or observe any other covenant contained in Section 7.01
hereof or any covenant contained in Section 7.02 hereof or Section 5 of the Security Agreements;

          (d) Any Loan Party shall fail to perform or observe any other term, covenant or agreement,
other than as set forth above in Sections 10.01(a), (b) and (c) above, contained in any Loan
Document to be performed or observed by such Loan Party and such failure, if capable of being
remedied, shall remain unremedied for 15 days after the earlier the date written notice of such
failure shall have been given by the Agent or the Required Lenders to such Loan Party or the
Borrower and the date a Responsible Officer of such Loan Party becomes aware of such failure;

          (e) Any Loan Party (other than any Immaterial Company) (i) shall fail to pay any principal or
interest on any of its Indebtedness (excluding Indebtedness evidenced by the Loan Documents) in
excess of $15,000,000 or any interest or premium thereon, when due (whether by scheduled maturity,
required prepayment, acceleration, demand or otherwise) and such failure shall continue after the
applicable grace period, if any, specified in the agreement or instrument relating to such
Indebtedness, or any other default under any agreement or instrument relating to any such
Indebtedness, or any other event, shall occur and shall continue after the applicable grace period,
if any, specified in such agreement or instrument, if the effect of such default or event is to
accelerate, or to permit the acceleration of, the maturity of such Indebtedness; or any such
Indebtedness in excess of such amount shall be declared to be due and payable, or required to be
prepaid (other than by a regularly scheduled required prepayment), prior to the stated maturity
thereof or (ii) shall default in the performance of any obligation under any of the P&T Contracts
or any related agreement (and such default shall not be waived or shall continue after any
applicable cure period therefor) and such default could reasonably be expected, in the judgment of
the Agent or the Required Lenders, to result in the termination of, or the loss or suspension of
any rights of the Borrower or any Subsidiary of the Parent under, the P&T Agreement or to have a
Material Adverse Effect;

          (f) Any Loan Party (other than any Immaterial Company) (i) shall institute any proceeding or
voluntary case seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution,
liquidation, winding up, reorganization, arrangement, adjustment,

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protection, relief or composition of it or its debts under any law relating to bankruptcy,
insolvency, reorganization or relief of debtors, or seeking the entry of an order for relief or the
appointment of a receiver, trustee, custodian or other similar official for such Loan Party or for
any substantial part of its property, (ii) shall be generally not paying its debts as such debts
become due, or shall admit in writing its inability to pay its debts generally, (iii) shall make a
general assignment for the benefit of creditors, or (iv) shall take any action to authorize or
effect any of the actions set forth above in this subsection (f);

          (g) Any proceeding shall be instituted against any Loan Party (other than any Immaterial
Company) seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution, liquidation,
winding up, reorganization, arrangement, adjustment, protection, relief of debtors, or seeking the
entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar
official for such Loan Party or for any substantial part of its property, and either such
proceeding shall remain undismissed or unstayed for a period of 60 days or any of the actions
sought in such proceeding (including, without limitation, the entry of an order for relief against
it or the appointment of a receiver, trustee, custodian or other similar official for it or for any
substantial part of its property) shall occur;

          (h) Any provision of any Loan Document shall at any time for any reason be declared by a court
of competent jurisdiction to be null and void, or the validity or enforceability thereof shall be
contested by any Loan Party, or a proceeding shall be commenced by any Loan Party or any
Governmental Authority or other regulatory body having jurisdiction over such Loan Party that could
reasonably be expected to result in a Material Adverse Effect, seeking to establish the invalidity
or unenforceability thereof, or any Loan Party shall deny in writing that such Loan Party has any
liability or obligation purported to be created under any Loan Document;

          (i) Any Security Document, after delivery thereof pursuant hereto, shall for any reason fail
or cease to create a valid and perfected and, except to the extent permitted by the terms hereof or
thereof, first priority Lien on or security interest in any Collateral with a fair market value
exceeding $500,000 in the aggregate purported to be covered thereby;

          (j) One or more judgments or orders (other than a judgment or award described in subsection
(f) or (g) of this Section 10.01) for the payment of money exceeding $5,000,000 in the aggregate
for the Loan Parties, shall be rendered against any Loan Party and either (i) enforcement
proceedings shall have been commenced by any creditor upon any such judgment or order, or (ii)
there shall be any period of 30 consecutive days during which a stay of enforcement of any such
judgment or order, by reason of a pending appeal or otherwise, shall not be in effect;

          (k) Any Company or any of its ERISA Affiliates shall have made a complete or partial
withdrawal from a Multiemployer Plan, and, as a result of such complete or partial withdrawal, such
Loan Party or such ERISA Affiliate incurs a withdrawal liability in an annual amount exceeding
$5,000,000; or a Multiemployer Plan enters reorganization status under Section 4241 of ERISA, and,
as a result thereof, such Loan Party’s or such ERISA

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Affiliate’s annual contribution requirement with respect to such Multiemployer Plan increases
in an annual amount exceeding $5,000,000;

          (l) Any Termination Event with respect to any Employee Plan shall have occurred, and, 30 days
after notice thereof shall have been given to any Company by the Agent, (i) such Termination Event
(if correctable) shall not have been corrected, and (ii) the then current value of such Employee
Plan’s vested benefits exceeds the then current value of assets allocable to such benefits in such
Employee Plan by more than $5,000,000 (or, in the case of a Termination Event involving liability
under Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or
Section 4971 or 4975 of the Internal Revenue Code, the liability is in excess of such amount);

          (m) A Change of Control shall have occurred;

          (n) Any Loan Party (other than an Immaterial Company) is enjoined, restrained or in any way
prevented by the order of any court or any administrative or regulatory agency from conducting all
or any material part of its business for more than fifteen (15) days;

          (o) Any material damage to, or loss, theft or destruction of, any Collateral, whether or not
insured, or any strike, lockout, labor dispute, embargo, condemnation, act of God or public enemy,
or other casualty which causes, for more than fifteen (15) consecutive days, the cessation or
substantial curtailment of revenue producing activities at any facility of the Borrower or any
other Loan Party, if any such event or circumstance could reasonably be expected to have a Material
Adverse Effect;

          (p) The loss, suspension or revocation of, or failure to renew, any license or permit now held
or hereafter acquired by the Borrower or any other Loan Party, if such loss, suspension, revocation
or failure to renew could reasonably be expected to have a Material Adverse Effect;

          (q) The indictment of the Borrower or any other Loan Party or any chief executive officer,
chief financial officer, president or similar material officer thereof under any criminal statute,
or commencement of criminal or civil proceedings against the Borrower or any other Loan Party,
pursuant to which statute or proceedings the penalties or remedies sought or available include
forfeiture to any government or governmental agency, authority or instrumentality of any material
portion of the property of the Borrower or such other Loan Party or in the case of a material
officer, imprisonment;

          (r) The occurrence of any event or series of events which has had a Material Adverse Effect;

          (s) (i) Borrower shall fail to make any lease payment under the Lease Agreement as and when
due and payable or (ii) any other breach, default, event of default or termination shall occur
under the Lease Documents, after giving effect to applicable grace periods, if any, contained in
the Lease Documents that gives any third party the right to terminate any of the Lease Documents;

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          (t) Holly or HEP Logistics Holdings, L.P. shall assert any claim against the Borrower or any
Company (other than an Immaterial Company) under or in connection with the Indemnification
Agreement in an aggregate amount exceeding $5,000,000;

then, and in any such event, with the consent of the Required Lenders the Agent may, or upon
the request of the Required Lenders, the Agent shall, by notice to the Borrower, (i) declare the
Total Commitment to be reduced to zero, whereupon the Total Commitment shall forthwith be reduced
to zero, (ii) declare all Revolving Credit Loans and all Reimbursement Obligations, all interest
thereon and all other amounts payable under this Agreement to be forthwith due and payable,
whereupon the Revolving Credit Loans, all Reimbursement Obligations, all such interest and all such
amounts shall become and be forthwith due and payable, without presentment, demand, protest or
further notice of any kind, all of which are hereby expressly waived by each Company;
provided, however, that upon the occurrence of any Event of Default described in
subsections (f) or (g) of this Section 10.01, the Revolving Credit Loans, all Reimbursement
Obligations, all such interest and all such amounts shall become and be forthwith due and payable,
without presentment, demand, protest or further notice of any kind, all of which are expressly
waived by each Company, and (iii) exercise any and all of its other rights under applicable law,
hereunder and under the other Loan Documents. Upon demand by the Agent after the occurrence and
during the continuation of any Event of Default, the Borrower shall deposit with the Agent with
respect to each Letter of Credit then outstanding cash in an amount equal to 105% of the greatest
amount for which such Letter of Credit may be drawn. Such deposits shall be held by the Agent in
the Letter of Credit Collateral Account as security for, and to provide for the payment of, the
Letter of Credit Obligations.

ARTICLE XI

GUARANTY

     Section 11.01 Guaranty. Each Guarantor Company hereby (i) irrevocably, absolutely and
unconditionally guarantees the prompt payment, as and when due and payable (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise), of (A) all the Obligations,
including, without limitation, all amounts now or hereafter owing in respect of the Loan Documents,
whether for principal, interest (including interest accruing on or after the filing of any petition
in bankruptcy or for reorganization relating to the Borrower whether or not a claim for post-filing
interest is allowed in such proceeding), fees, expenses, indemnifications or otherwise, and (B) all
indebtedness, obligations and other liabilities, direct or indirect, absolute or contingent, now
existing or hereafter arising of the Borrower to the Agent, the WC Collateral Agent, the Lenders or
the L/C Issuer under the Loan Documents and (ii) agrees to pay any and all reasonable expenses
(including reasonable counsel fees and expenses) incurred by the Agent, the WC Collateral Agent,
the Lenders or the L/C Issuer in enforcing its rights under this Article XI.

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     Section 11.02 Obligations Unconditional.

          (a) Each Guarantor Company hereby guarantees that the Obligations will be paid strictly in
accordance with the terms of the Loan Documents, regardless of any law, regulation or order now or
hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Agent, the
Lenders or the L/C Issuer with respect thereto. Each such Guarantor Company agrees that its
guarantee constitutes a guaranty of payment when due and not of collection, and waives any right to
require that any resort be had by the Agent, the WC Collateral Agent, the Lenders or the L/C Issuer
to any Collateral. The obligations of each Guarantor Company under this Article XI are independent
of the obligations of the Borrower under this Agreement and the other Loan Documents and a separate
action or actions may be brought and prosecuted against the Guarantor Companies to enforce this
Article XI irrespective of whether any action is brought against the Borrower or whether the
Borrower is joined in any such action. The liability of the Guarantor Companies hereunder shall be
absolute and unconditional, irrespective of: (i) any lack of validity or enforceability of any
Loan Document or any agreement or instrument relating thereto; (ii) any extension or change in the
time, manner or place of payment of, or in any other term in respect of, all or any of the
Obligations (including, without limitation, any extension for longer than the original period), or
any other amendment or waiver of or consent to any departure from any provision of any Loan
Document (including the creation or existence of any Obligations in excess of the amounts permitted
by any lending formulas contained in this Agreement); (iii) any exchange or release of, or
non-perfection of any Lien on, any Collateral, or any release or amendment or waiver of or consent
to any departure from any other guaranty, for all or any of the Obligations; or (iv) the existence
of any claim, set off, defense or other right that the Guarantor Companies may have against any
Person, including the Agent, the WC Collateral Agent, the L/C Issuer or the Lenders; (v) any other
circumstance which might otherwise constitute a defense available to, or a discharge of, the
Borrower or any other Guarantor in respect of the Obligations or of the Guarantor Companies in
respect hereof.

          (b) This Guaranty (i) is a continuing guaranty and shall remain in full force and effect until
such date on which all of the Obligations and all other expenses to be paid by the Borrower
pursuant hereto shall have been satisfied in full after the Total Commitment shall have been
terminated, (ii) shall continue to be effective or shall be reinstated, as the case may be, if at
any time any payment of any of the Obligations is rescinded or must otherwise be returned by the
Agent, the WC Collateral Agent, the Lenders or the L/C Issuer upon the insolvency, bankruptcy or
reorganization of any Borrower or any Guarantor or otherwise, all as though such payment had not
been made, and (iii) shall be binding upon each Guarantor Company, its successors and assigns.

     Section 11.03 Waivers. Each Guarantor Company hereby waives, to the extent permitted
by applicable law, (i) promptness and diligence, (ii) notice of acceptance and notice of the
incurrence of any Obligation, (iii) notice of any action taken by the Agent, the WC Collateral
Agent, the Lenders, the L/C Issuer, IDB or the Borrower or any other agreement or instrument
relating thereto, (iv) all other notices, demands and protests, and all other formalities of every
kind in connection with the enforcement of the Obligations or of the obligations of such Guarantor
Company hereunder, the omission of or delay in which, but for the provisions of this Section 11.03,
might constitute grounds for relieving such Guarantor Company of its obligations hereunder, (v) any
requirement that the Agent, the WC Collateral Agent, the Lenders or the L/C

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Issuer protect, secure, perfect or insure any Lien or any property subject thereto or exhaust
any right or take any action against any Person or any Collateral, and (vi) any other defenses
available to the Borrower or such Guarantor Company. All such waivers by the Guarantor Companies
shall be effective only to the extent permitted by applicable law.

     Section 11.04 Subrogation. Until such time as the Obligations shall have been paid in
full and the Total Commitment is terminated, each Guarantor Company hereby irrevocably agrees that
it will not exercise any and all rights which it has or may have at any time or from time to time
(whether arising directly or indirectly by operation of law or contract) to assert any claim
against the Borrower or any other Guarantor on account of any payments made under this Agreement,
including, without limitation, all existing and future rights of subrogation, reimbursement,
exoneration, contribution and/or indemnity. If any amount shall be paid to a Guarantor Company on
account of such rights at any time when all of such Obligations and all other Obligations shall not
have been paid in full, such amount shall be held in trust for the benefit of the Agent or the
Lenders, shall be segregated from the other funds of such Guarantor Company and shall forthwith be
paid over to the Agent to be applied in whole or in part by the Agent against the Obligations,
whether matured or unmatured, in accordance with the terms of this Agreement.

     Section 11.05 No Waiver; Remedies. No failure on the part of the Agent, the WC
Collateral Agent, the Lenders or the L/C Issuer to exercise, and no delay in exercising, any right
hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right
hereunder preclude any other or further exercise thereof or the exercise of any other right. The
remedies herein provided are cumulative and not exclusive of any remedy provided by law.

     Section 11.06 Stay of Acceleration. If acceleration of the time for payment of any
amount payable by the Borrower in respect of the Obligations is stayed upon the insolvency,
bankruptcy or reorganization of the Borrower, all such amounts otherwise subject to acceleration
under the terms of this Agreement shall nonetheless be payable by the Guarantor Companies hereunder
forthwith on demand by the Agent, the WC Collateral Agent, the Lenders or the L/C Issuer.

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ARTICLE XII

MISCELLANEOUS

     Section 12.01 Termination; Annual Review.

          (a) The Borrower may terminate the Total Commitment and reduce it to zero in accordance with
Section 2.07, and the Total Commitment and this Agreement shall terminate in accordance with the
last paragraph of Section 10.01.

          (b) The Total Commitment and this Agreement shall automatically terminate on the Termination
Date.

          (c) All Obligations shall become due and payable as of the date of any termination under
Section 2.07(a), Section 12.01(a) or 12.01(b) and, pending a final accounting, the Agent may
withhold any balances in the Loan Account (unless supplied with an indemnity satisfactory to the
Agent) to cover all of the Obligations, whether absolute or contingent. All of the Agent’s, the WC
Collateral Agent’s and the Lenders’ rights and Liens and security interests shall continue after
any termination until all Obligations for the payment of money have been paid in cash and satisfied
in full and all Letters of Credit have been canceled and returned to the L/C Issuer or cash
collateralized to the reasonable satisfaction of the Agent. After such payment and satisfaction,
the Agent, the WC Collateral Agent and the Lenders will, upon the reasonable request of the
Borrower, execute all documents necessary to release, without recourse, representation and warranty
and at the expense of the Borrower, its Liens granted pursuant to the terms of this Agreement and
the other Loan Documents.

          (d) On or prior to July 31 of each year (commencing July 31, 2001), the Borrower shall provide
the Agent with a certificate certifying and attaching any supporting calculations or details that:
(i) the representations and warranties contained in Section 6.01 of this Agreement and in each
other Loan Document and certificate or other writing delivered to either Collateral Agent, the
Agent, the L/C Issuer or the Lenders pursuant hereto on or prior to such date are true and correct
on and as of such date as though made on and as of such date, except to the extent that any such
representation or warranty expressly relates solely to an earlier date (in which case any such
representation or warranty shall be true and correct on and as of such earlier date), (ii) the
Borrower is in compliance with the financial covenants set forth in Section 7.02(j) hereof, and
(iii) no Event of Default or Default has occurred and is continuing.

     Section 12.02 Notices, Etc. All notices and other communications provided for
hereunder shall be in writing and shall be mailed, sent by overnight courier, telecopied, or
delivered, if to any Lender, at its address specified under its signature on the signature pages
hereof; if to the Borrower or the other Companies, at the following address:

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Alon USA, LP

7616 LBJ Freeway, Suite 300

Dallas, Texas 75251

Attention: Mr. Michael Oster

Mr. Harlin R. Dean, Jr.

Mr. Shai Even

Telephone: (972) 367-4000

Telecopier: (972) 367-3724

if to the Agent, to it at the following address:

Israel Discount Bank of New York

511 Fifth Avenue

New York, New York 10017

Attention: Mr. Amir Barash

Telephone: (212) 551-8126

Telecopier: (212) 599-4276

with a copy to

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Attention: Lawrence S. Goldberg, Esq.

Telephone: (212) 756-2000

Telecopier: (212) 593-5955

or, as to each party, at such other address as shall be designated by such party in a written
notice to the other party complying as to delivery with the terms of this Section 12.02. All such
notices and other communications shall be effective (i) if mailed (by certified mail, postage
prepaid and return receipt requested), upon receipt or three Business Days after mailing whichever
occurs first, (ii) if telecopied, when transmitted and a confirmation is received, provided the
same is on a Business Day and, if not, on the next Business Day, (iii) if sent by overnight
courier, upon receipt or two Business Days after delivered to such overnight courier, whichever
occurs first or (iv) if delivered, upon delivery, provided the same is on a Business Day and, if
not, on the next Business Day, except that notices to the Agent or the L/C Issuer pursuant to
Articles II and III hereof shall not be effective until received by the Agent or the L/C Issuer, as
the case may be.

     Section 12.03 Amendments, Etc. No amendment or waiver of any provision of this
Agreement or the other Loan Documents, and no consent to any departure by any Loan Party therefrom,
shall in any event be effective unless the same shall be in writing and signed by such Loan Party
and the Required Lenders, and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given; provided, however, that no
amendment, waiver or consent shall (i) increase the Revolving Credit Commitment of any Lender,
reduce the principal of, or interest on, the Revolving Credit Loans or the Reimbursement
Obligations payable to any Lender, reduce the amount of any fee payable for the
account of any

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Lender, or postpone or extend any date fixed for any payment of principal of,
or interest or fees on, the Revolving Credit Loans or Letter of Credit Obligations payable to any
Lender, in each case without the written consent of any Lender affected thereby, (ii) increase the
Total Commitment without the written consent of each Lender, (iii) change the percentage of the
Revolving Credit Commitments or of the aggregate unpaid principal amount of the Revolving Credit
Notes, or amend the definition of “Required Lenders,” without the written consent of each Lender,
(iv) release all or a substantial portion of the Collateral (except as otherwise provided in this
Agreement or any of the other Loan Documents) or the Guarantors (other than inactive Guarantors or
as otherwise provided in this Agreement or in any of the other Loan Documents) without the written
consent of each Lender, (v) amend, modify or waive Section 12.01 or this Section 12.03 of this
Agreement without the written consent of each Lender, or (vi) amend the definition of “Eligible
Inventory,” “Eligible Receivables,” or “Borrowing Base” if the effect of such amendment is to
increase materially Availability without the written consent of each Lender. Notwithstanding the
foregoing, no amendment, waiver or consent shall affect the rights or duties of the Agent or the
L/C Issuer with respect to a Letter of Credit under this Agreement or the other Loan Documents,
unless the same shall have been signed by the Agent or the L/C Issuer, as applicable.

     Section 12.04 No Waiver; Remedies, Etc. No failure on the part of the L/C Issuer, any
Lender or the Agent to exercise, and no delay in exercising, any right hereunder or under any other
Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any
right under any Loan Document preclude any other or further exercise thereof or the exercise of any
other right. The rights and remedies of the L/C Issuer, the Lenders and the Agent provided herein
and in the other Loan Documents are cumulative and are in addition to, and not exclusive of, any
rights or remedies provided by law. The rights of the Lenders, the L/C Issuer and the Agent under
any Loan Document against any party thereto are not conditional or contingent on any attempt by the
Lenders, the L/C Issuer and the Agent to exercise any of their rights under any other Loan Document
against such party or against any other Person.

     Section 12.05 Expenses; Taxes; Attorneys’ Fees. The Companies agree to jointly and
severally pay or cause to be paid, on demand, and to save the Agent (and, in the case of clauses
(a) and (c) through (m) below, the Lenders) harmless against liability for the payment of, all
reasonable out-of-pocket fees, costs and expenses, regardless of whether the transactions
contemplated hereby are consummated, including but not limited to reasonable fees, costs and
expenses of counsel for the Agent (and, in the case of clauses (c) through (m) below, the Lenders),
accounting, due diligence, periodic field audits, investigation, monitoring of assets, syndication,
miscellaneous disbursements, examination, travel, lodging and meals, incurred by the Agent (and, in
the case of clauses (a) and (c) through (m) below, the Lenders) from time to time arising from or
relating to: (a) the negotiation, preparation, execution, delivery, performance and administration
of this Agreement and the other Loan Documents, (b) any requested amendments, waivers or consents
to this Agreement or the other Loan Documents, whether or not such documents become effective or
are given, (c) the preservation and protection of any of the Agent’s and the Lenders’ rights under
this Agreement or the other Loan Documents, (d) the defense of any claim or action asserted or
brought against the Agent or the Lenders by any Person that arises from or relates to this
Agreement, any other Loan Document, the Agent’s or the Lenders’ claims against the Borrower or the
other Loan Parties, or any and all matters in connection therewith, (e) the commencement or defense
of, or intervention in, any court

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proceeding arising from or related to this Agreement or any other Loan Document, (f) the
filing of any petition, complaint, answer, motion or other pleading by the Agent or the Lenders, or
the taking of any action in respect of the Collateral or other security, in connection with this
Agreement or any other Loan Document, (g) the protection, collection, lease, sale, taking
possession of or liquidation of, any Collateral or other security in connection with this Agreement
or any other Loan Document, (h) any attempt to enforce any Lien on any Collateral or other security
in connection with this Agreement or any other Loan Document, (i) any attempt to collect from the
Borrower or any other Loan Party, (j) the receipt of any professional advice with respect to any of
the foregoing (including, without limitation, with respect to any restructuring, work-out or
renegotiation of any Loan Document), (k) all liabilities and reasonable costs arising from or in
connection with the past, present or future operations of the Loan Parties (or any Affiliate of the
foregoing) involving any damage to real or personal property or natural resources or harm or injury
alleged to have resulted from any Release of Hazardous Materials on, upon or into such property,
(l) any reasonable costs or liabilities incurred in connection with the investigation, removal,
cleanup and/or remediation of any Hazardous Materials present or arising out of the operations of
any facility of the Loan Parties, or (m) any liabilities or reasonable costs incurred in connection
with any Lien arising under any Environmental Law. Without limitation of the foregoing or any
other provision of any Loan Document: (x) the Companies jointly and severally agree to pay all
stamp, document, transfer, recording or filing taxes or fees (including, without limitation,
mortgage recording taxes) and similar impositions now or hereafter payable pursuant to Section 2.12
hereof, and the Companies jointly and severally agree to save the Agent, the L/C Issuer and the
Lenders harmless from and against any and all present or future claims, liabilities or losses with
respect to or resulting from any omission to pay or delay in paying any such taxes, fees or
impositions in accordance with such Section 2.12, and (y) if the Borrower or any Loan Party fails
to perform any covenant or agreement contained herein or in any other Loan Document, the Agent may
itself perform or cause performance of such covenant or agreement, and the expenses of the Agent
incurred in connection therewith shall be reimbursed on demand by the Borrower.

     Section 12.06 Right of Set Off. Upon the occurrence and during the continuance of any
Event of Default, each Lender and its Affiliates may, and is hereby authorized to, at any time and
from time to time, without notice to any Loan Party (any such notice being expressly waived by the
Borrower and Companies) and to the fullest extent permitted by law, set off and apply any and all
deposits (general or special, time or demand, provisional or final) at any time held and other
indebtedness at any time owing by such Lender or its Affiliates to or for the credit or the account
of any Loan Party against any and all joint and several obligations of the Borrower now or
hereafter existing under any Loan Document, irrespective of whether or not such Lender or its
Affiliates shall have made any demand hereunder or thereunder and although such obligations may be
contingent or unmatured. Such set-off shall be subject to the provisions of Section 4.03. Such
Lender agrees to notify the Borrower promptly after any such set-off and application made by such
Lender or its Affiliates, provided that the failure to give such notice shall not affect
the validity of such set-off and application. The rights of each Lender and its Affiliates under
this Section 12.06 are in addition to the other rights and remedies (including, without limitation,
other rights of set-off) which such Lender may have.

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     Section 12.07 Severability. Any provision of this Agreement, or of any other Loan
Document to which any Borrower or any Guarantor is a party, which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition
or unenforceability without invalidating the remaining portions hereof or thereof or affecting the
validity or enforceability of such provision in any other jurisdiction.

     Section 12.08 Assignments and Participations.

          (a) Each Lender may assign to one or more Eligible Assignees all or a portion of its rights
and obligations under this Agreement (including, without limitation, all or a portion of its
Revolving Credit Commitment, the Revolving Credit Loans made by it, the Revolving Credit Notes held
by it and its Pro Rata Share of Letter of Credit Obligations); provided, however, that (1) the
consent of the Agent and Borrower shall not be required for any such assignment by a Lender to one
or more of such Lender’s Affiliates, (2) each such assignment is in an amount which is at least
$10,000,000 or a multiple of $1,000,000 in excess thereof (or the remainder of such Lender’s
Revolving Credit Commitment), (3) each such assignment shall be of a constant, and not a varying,
percentage of all of the assigning Lender’s rights and obligations under this Agreement, (4) such
assignee shall execute and deliver an Assignment and Acceptance to the Agent, (5) the parties to
each such assignment shall execute and deliver to the Agent, for its acceptance, an Assignment and
Acceptance, together with any Revolving Credit Notes subject to such assignment, (6) such parties
shall deliver to the Agent a processing and recordation fee of $3,500 (except in the case of any
assignment by a Lender to one or more of its Affiliates in which case such fee will not be
payable), and (7) such assignee shall reimburse the Agent for any out-of-pocket expenses (including
reasonable legal fees) incurred in connection therewith. Notwithstanding the foregoing, in no
event shall any assignment be made to any Loan Party or any Affiliate of a Loan Party without the
prior written consent of the Required Lenders, which consent may be withheld by the Required
Lenders in their sole and absolute discretion. Upon such execution, delivery and acceptance, from
and after the effective date specified in each Assignment and Acceptance, which effective date
shall be at least three Business Days after the delivery thereof to the Agent (or such shorter
period as shall be agreed to by the Agent and the parties to such assignment), (A) the assignee
thereunder shall become a “Lender” hereunder and, in addition to the rights and obligations
hereunder held by it immediately prior to such effective date, have the rights and obligations
hereunder that have been assigned to it pursuant to such Assignment and Acceptance and (B) the
assigning Lender thereunder shall, to the extent that rights and obligations hereunder have been
assigned by it pursuant to such Assignment and Acceptance, relinquish its rights and be released
from its obligations under this Agreement (and, in the case of an Assignment and Acceptance
covering all or the remaining portion of an assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto). Any such assignment shall not adversely
affect the Borrower’ rights under this Agreement except that the assigning Lender shall not be
responsible for the obligations assigned.

          (b) By executing and delivering an Assignment and Acceptance, the assigning Lender thereunder
and the assignee thereunder confirm to and agree with each other and the other parties hereto that:
(i) other than as provided in such Assignment and Acceptance, such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to any statements, warranties
or representations made in or in connection with this

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Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Agreement of any other instrument or document furnished pursuant hereto, and (ii)
such assigning Lender makes no representation or warranty and assumes no responsibility with
respect to the financial condition of the Borrower or any Guarantor or any of their Subsidiaries or
the performance or observance by the Borrower or such Guarantor or any of their Subsidiaries of any
of their obligations under this Agreement, any other Loan Document or any other instrument or
document furnished pursuant hereto.

          (c) The Agent shall maintain at its address referred to in Section 12.02 hereof a copy of each
Assignment and Acceptance delivered to and accepted by it. Such copies shall be available for
inspection by the Borrower or any Guarantor or any Lender at any reasonable time and from time to
time upon reasonable prior notice.

          (d) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and an
assignee Lender, together with the Revolving Credit Notes subject to such assignment and the
processing and recordation fee, if the Agent consents, which consent will not be unreasonably
withheld, to the proposed Assignment, the Agent shall, if such Assignment and Acceptance has been
completed and is in substantially the form of Exhibit D hereto, (i) accept such Assignment and
Acceptance, and (ii) give prompt notice thereof to the Borrower. Within three Business Days after
its receipt of such notice, the Borrower or any Guarantor, at its own expense, shall execute and
deliver to the Agent in exchange for the surrendered Revolving Credit Notes a new Revolving Credit
Notes to the order of such assignee Lender in an aggregate principal amount equal to the Revolving
Credit Loans and Revolving Credit Commitment assumed by it pursuant to such Assignment and
Acceptance, and if the assigning Lender has retained any Revolving Credit Loans and Revolving
Credit Commitment hereunder, a new Revolving Credit Notes to the order of the assigning Lender in
an aggregate principal amount equal to the Revolving Credit Loans and Revolving Credit Commitment
retained by it hereunder. Such new Revolving Credit Notes or Revolving Credit Notes shall be in an
aggregate principal amount equal to the aggregate principal amount of such surrendered Revolving
Credit Notes or Revolving Credit Notes, shall be dated the date of the Agent’s acceptance of such
Assignment and Acceptance and shall otherwise be in substantially the form of Exhibit A hereto.
Promptly after each such Assignment and Acceptance becomes effective, the Agent shall prepare and
distribute to each Lender and the Borrower a revised Schedule B hereto after giving effect to such
assignment, which revised Schedule B shall replace the prior Schedule B and become part of this
Agreement.

          (e) Each Lender may sell participations in or to all or a portion of its rights and
obligations under this Agreement (including, without limitation, all or a portion of its Revolving
Credit Commitment, the Revolving Credit Loans made by it and the Revolving Credit Notes held by it
and the Letter of Credit Obligations). Participants shall have no direct rights under this
Agreements except that participants shall have the rights of a Lender under Sections 2.09, 2.10 and
12.06 hereof, provided that no Lender may grant any participant any rights to consent to any
amendment, waiver, consent or other modification hereunder other than the rights set forth in the
proviso in Section 12.03, and provided further that no Lender may grant participations to any Loan
Party or any Affiliate of a Loan Party without the prior written consent of the Required Lenders,
which consent may be withheld by the Required Lenders in their sole and absolute discretion.

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          (f) Nothing contained in this Section 12.08 shall prohibit any Lender from pledging its
Revolving Credit Loans hereunder to a Federal Reserve Bank in support of borrowings made by such
Lender from such Federal Reserve Bank.

     Section 12.09 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which shall be
deemed to be an original, but all of which taken together shall constitute one and the same
agreement.

     Section 12.10 Headings. Section headings herein are included for convenience of
reference only and shall not constitute a part of this Agreement for any other purpose.

     Section 12.11 Governing Law.

          (a) THIS AGREEMENT, THE REVOLVING CREDIT NOTES AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE
AND TO BE PERFORMED IN THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES, EXCEPT
TO THE EXTENT THAT THE VALIDITY AND PERFECTION OR THE PERFECTION AND THE EFFECT OF PERFECTION OR
NON-PERFECTION OF THE SECURITY INTEREST CREATED THEREBY, OR REMEDIES THEREUNDER, IN RESPECT OF ANY
PARTICULAR COLLATERAL ARE GOVERNED BY THE LAW OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.

          (b) Any legal action or proceeding with respect to this Agreement or any other Loan Document
may be brought in the courts of the State of New York or of the United States for the Southern
District of New York, and, by execution and delivery of this Agreement, the Companies hereby
irrevocably accept in respect of its property, generally and unconditionally, the jurisdiction of
the aforesaid courts. The Companies further irrevocably consent to the service of process out of
any of the aforementioned courts and in any such action or proceeding by the mailing of copies
thereof by registered or certified mail, postage prepaid, to the Borrower or the Companies at their
addresses for notices contained in Section 12.02, such service to become effective ten (10) days
after such mailing. The Companies hereby irrevocably appoint the Secretary of State of the State
of New York as its agent for service of process in respect of any such action or proceeding.
Nothing herein shall affect the right of the Agent to service of process in any other manner
permitted by law or to commence legal proceedings or otherwise proceed against the Borrower and/or
any Company in any other jurisdiction. The Companies hereby expressly and irrevocably waive, to
the fullest extent permitted by law, any objection which it may now or hereafter have to the laying
of venue of any such litigation brought in any such court referred to above and any claim that any
such litigation has been brought in an inconvenient forum. To the extent that any Company or the
Borrower has or hereafter may acquire any immunity from jurisdiction of any court or from any legal
process (whether through service or notice, attachment prior to judgment, attachment in aid of
execution or otherwise) with respect to itself or its property, such Person hereby irrevocably
waives such immunity in respect of its obligations under this Agreement and the other Loan
Documents.

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     Section 12.12 Waiver of Jury Trial, Etc. THE COMPANIES, THE LENDERS AND THE AGENT
HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM CONCERNING ANY
RIGHTS UNDER THIS AGREEMENT, THE NOTES OR OTHER LOAN DOCUMENTS, OR UNDER ANY AMENDMENT, WAIVER,
CONSENT, INSTRUMENT, DOCUMENT OR OTHER AGREEMENT DELIVERED OR WHICH IN THE FUTURE MAY BE DELIVERED
IN CONNECTION THEREWITH, OR ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN CONNECTION WITH THIS
AGREEMENT, AND AGREE THAT ANY SUCH ACTION, PROCEEDINGS OR COUNTERCLAIM SHALL BE TRIED BEFORE A
COURT AND NOT BEFORE A JURY. THE COMPANIES CERTIFY THAT NO OFFICER, REPRESENTATIVE, AGENT OR
ATTORNEY OF THE AGENT OR ANY LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE AGENT OR ANY
LENDER WOULD NOT, IN THE EVENT OF ANY ACTION, PROCEEDING OR COUNTERCLAIM, SEEK TO ENFORCE THE
FOREGOING WAIVERS. THE COMPANIES HEREBY ACKNOWLEDGE THAT THIS PROVISION IS A MATERIAL INDUCEMENT
FOR THE AGENT AND THE LENDERS ENTERING INTO THIS AGREEMENT.

     Section 12.13 Consent by the Agent, Lenders. Except as otherwise expressly set forth
herein to the contrary, if the consent, approval, satisfaction, determination, judgment, acceptance
or similar action (an “Action”) of the Agent or the Lenders shall be permitted or required
pursuant to any provision hereof or any provision of any other agreement to which any Company or
the Borrower is a party and to which the Agent or the Lenders has succeeded thereto, such Action
shall be required to be in writing and may be withheld or denied by any Agent or any Lender, as the
case may be, with or without any reason, and without being subject to question or challenge on the
grounds that such Action was not taken in good faith.

     Section 12.14 No Party Deemed Drafter. The parties hereto hereby agree that no party
hereto shall be deemed to be the drafter of this Agreement, and each of the Borrower, the
Companies, the Lenders and the Agent further agrees that, in the event this Agreement is ever
construed by a court of law, such court shall not construe this Agreement or any provision of this
Agreement against any party hereto as the drafter of this Agreement.

     Section 12.15 Reinstatement; Certain Payments. If claim is ever made upon the Agent,
the Lenders or the L/C Issuer for repayment or recovery of any amount or amounts received by the
Agent, the Lenders or the L/C Issuer in payment or on account of any of the Obligations under this
Agreement, the Agent, the Lenders or the L/C Issuer shall give prompt notice of such claim to each
other Lender and the L/C Issuer, the Companies and the Borrower, and if the Agent, the Lenders or
the L/C Issuer repays all or part of said amount by reason of (i) any judgment, decree or order of
any court or administrative body having jurisdiction over the Agent, the Lenders or the L/C Issuer
or any of their property, or (ii) any good faith settlement or compromise of any such claim
effected by the Agent with any such claimant, then and in such event the Companies and the Borrower
agrees that (A) any such judgment, decree, order, settlement or compromise shall be binding upon
the Companies and the Borrower notwithstanding the cancellation of any Revolving Credit Notes or
other instrument evidencing the Obligations under this Agreement or the other Loan Documents or the
termination of this Agreement or the other Loan Documents, and (B) it shall be and remain liable to
the Agent, the

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Lenders or the L/C Issuer hereunder for the amount so repaid or recovered to the same extent
as if such amount had never originally been received by the Agent, the Lenders or the L/C Issuer.

     Section 12.16 Indemnification. In addition to all of the Companies’ or the Borrower’s
other Obligations under this Agreement, each of the Companies and the Borrower agrees to, jointly
and severally, defend, protect, indemnify and hold harmless the Agent, the L/C Issuer, the WC
Collateral Agent, each Lender, and each Lender’s Affiliates, and all of the respective officers,
directors, employees, attorneys, consultants and Agent of the Agent, the L/C Issuer, the WC
Collateral Agent, each Lender and each Lender’s Affiliates (collectively called the
“Indemnitees”) from and against any and all losses, damages, liabilities, obligations,
penalties, fees, reasonable costs and expenses (including, without limitation, reasonable
attorneys’ fees, costs and expenses) incurred by such Indemnitees, whether prior to or from and
after the Original Effective Date or the Effective Date, whether direct, indirect or consequential,
as a result of or arising from or relating to or in connection with any of the following: (i) the
negotiation, preparation, execution or performance or enforcement of this Agreement, any Loan
Document or of any other document executed in connection with the transactions contemplated by this
Agreement, (ii) the Lenders’ furnishing of funds to the Borrower or the L/C Issuer’s issuing
Letters of Credit for the account of the Borrower under this Agreement, including, without
limitation, the management of any such Revolving Credit Loans or the Reimbursement Obligations,
(iii) any matter relating to the financing transactions contemplated by this Agreement or by any
document executed in connection with the transactions contemplated by this Agreement, or (iv) any
claim, litigation, investigation or proceeding relating to any of the foregoing, whether or not any
Indemnitee is a party thereto (collectively, the “Indemnified Matters”); provided,
however, that the Companies and the Borrower shall have no obligation to any Indemnitee
hereunder for any Indemnified Matter caused by or resulting from the gross negligence or willful
misconduct of such Indemnitee, as determined by a final judgment of a court of competent
jurisdiction. Such indemnification for all of the foregoing losses, damages, fees, costs and
expenses of the Indemnitees are chargeable against the Loan Account. To the extent that the
undertaking to indemnify, pay and hold harmless set forth in this Section 12.16 may be
unenforceable because it is violative of any law or public policy, the Companies and the Borrower
shall contribute the maximum portion which they are permitted to pay and satisfy under applicable
law, to the payment and satisfaction of all Indemnified Matters incurred by the Indemnitees. This
Indemnity shall survive the repayment of the Obligations and the discharge of the Liens granted
under the Loan Documents.

     Section 12.17 Environmental Indemnification. Without limiting Section 12.16 hereof,
the Companies and the Borrower hereby agree to defend, indemnify, and hold harmless the Indemnitees
against any claims, demands, penalties, fines, liability (strict liability), losses, damages,
reasonable costs and expenses (including without limitation, reasonable legal fees and expenses,
consultant fees and laboratory fees) and Environmental Costs arising out of (i) any Releases or
threatened Releases (x) at any property presently or formerly owned or operated by any Company or
any Subsidiary of a Company, or a predecessor in interest to the extent relating to the Refinery,
Terminals, or Pipelines, or (y) of any Hazardous Materials generated and disposed of by any Company
or any Subsidiary of a Company, or any predecessor in interests to the extent relating to the
Refinery, Terminals, or Pipelines; (ii) any violations of Environmental Laws; (iii) any
Environmental Action relating to any Company or any Subsidiary of any Company, or any predecessor
in interests as to the extent relating to the Refinery, Terminals, or

100

 

Pipelines; or (iv) any personal injury (including wrongful death) or property damage (real or
personal) arising out of exposure to Hazardous Materials used, handled, generated, transported or
disposed by any Company or any Subsidiary of a Company, or any predecessor in interest to the
extent relating to the Refinery, Terminals, or Pipelines, and (v) any breach of any warranty or
representation regarding environmental matters made by the Companies in Section 6.01(s) or the
breach of any covenant made by the Borrower or the Companies in Section 7.01(i). However, the
Borrower and the Companies shall not have any obligation under this Section 12.17 regarding any
potential environmental matter covered hereunder which is caused by the gross negligence or willful
misconduct of the Lender, the Agent or its employees, agents, officers and directors. This
Environmental Indemnity shall survive the repayment of the Obligations and discharge of any Liens
granted under the Loan Documents.

     Section 12.18 Binding Effect. This Agreement shall become effective when it shall
have been executed by the Guarantor Companies, the Borrower, the Agent and the Lenders and when the
conditions precedent set forth in Section 5.01 hereof have been satisfied or waived by the Agent,
and thereafter shall be binding upon and inure to the benefit of the Guarantor Companies, the
Borrower, the Agent and each Lender, and their respective successors and assigns, except that the
Guarantor Companies and the Borrower shall not have the right to assign their rights hereunder or
any interest herein without the prior written consent of all the Lenders, and the assignment by any
Lender shall be governed by Section 12.08 hereof.

     Section 12.19 Interest. It is the intention of the parties hereto that each Lender
shall conform strictly to usury laws applicable to it. Accordingly, if the transactions
contemplated hereby would be usurious as to any Lender under laws applicable to it (including the
laws of the United States of America and any state thereof or any other jurisdiction whose laws may
be mandatorily applicable to such Lender notwithstanding the other provisions of this Agreement),
then, in that event, notwithstanding anything to the contrary in any of the Loan Documents or any
agreement entered into in connection with or as security for the Revolving Credit Notes or any
other Obligations, it is agreed as follows: (a) the aggregate of all consideration which
constitutes interest under law applicable to any Lender that is contracted for, taken, reserved,
charged or received by such Lender under any of the Loan Documents or agreements or otherwise in
connection with the Revolving Credit Notes shall under no circumstances exceed the maximum amount
allowed by such applicable law, and any excess shall be canceled automatically and if theretofore
paid shall be credited by such Lender on the principal amount of the Obligations (or, to the extent
that the principal amount of the Obligations shall have been or would thereby be paid in full,
refunded by such Lender to the Borrower); and (b) in the event that the maturity of the Revolving
Credit Notes is accelerated by reason of an election of the holder thereof resulting from any Event
of Default under this Agreement or otherwise, or in the event of any required or permitted
prepayment, then such consideration that constitutes interest under law applicable to any Lender
may never include more than the maximum amount allowed by such applicable law, and excess interest,
if any, provided for in this Agreement or otherwise shall be canceled automatically by such Lender
as of the date of such acceleration or prepayment and, if theretofore paid, shall be credited by
such Lender on the principal amount of the Obligations (or, to the extent that the principal amount
of the Obligations shall have been or would thereby be paid in full, refunded by such Lender to the
Borrower). All sums paid or agreed to be paid to any Lender for the use, forbearance or detention
of sums due hereunder shall, to the extent permitted by law applicable to such Lender, be
amortized, prorated,

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allocated and spread throughout the full term of the Revolving Credit Loans evidenced by the
Revolving Credit Notes until payment in full so that the rate or amount of interest on account of
any Revolving Credit Loans hereunder does not exceed the maximum amount allowed by such applicable
law. If at any time and from time to time (i) the amount of interest payable to any Lender on any
date shall be computed at the Highest Lawful Rate applicable to such Lender pursuant to this
Section 12.19. and (ii) in respect of any subsequent interest computation period the amount of
interest otherwise payable to such Lender would be less than the amount of interest payable to such
Lender computed at the Highest Lawful Rate applicable to such Lender, then the amount of interest
payable to such Lender in respect of such subsequent interest computation period shall continue to
be computed at the Highest Lawful Rate applicable to such Lender until the total amount of interest
payable to such Lender shall equal the total amount of interest which would have been payable to
such Lender if the total amount of interest had been computed without giving effect to this Section
12.19. For purposes of this Section 12.19, “Highest Lawful Rate” means, with respect to
each Lender, the maximum nonusurious interest rate, if any, that at any time or from time to time
may be contracted for, taken, reserved, charged or received on the Revolving Credit Notes or on
other Obligations under laws applicable to such Lender which are presently in effect or, to the
extent allowed by law, under such applicable laws which may hereafter be in effect and which allow
a higher maximum nonusurious interest rate than applicable laws now allow. To the extent that
Chapter 303 of the Texas Finance Code is relevant for the purpose of determining the Highest Lawful
Rate, such Lender elects to determine the applicable rate ceiling under such Chapter by the
indicated weekly rate ceiling from time to time in effect.

     Section 12.20 Entire Agreement. THE LOAN DOCUMENTS EMBODY THE ENTIRE AGREEMENT AND
UNDERSTANDING BETWEEN THE PARTIES AND SUPERSEDE ALL OTHER AGREEMENTS AND UNDERSTANDINGS BETWEEN
SUCH PARTIES RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF. THE LOAN DOCUMENTS REPRESENT THE
FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

     Section 12.21 Patriot Act. Each Lender hereby notifies the Borrower that pursuant to
the requirements of the Patriot Act, it is required to obtain, verify and record information that
identifies the Borrower, which information includes the name and address of the Borrower and other
information that will allow such Lender to identify the Borrower in accordance with the Patriot
Act.

     Section 12.22 No Novation. This Agreement does not extinguish the obligations for the
payment of money outstanding under the Existing Revolving Credit Agreement or discharge or release
the Obligations under, and as defined in, the Existing Revolving Credit Agreement or the creation,
perfection or priority of any mortgage, pledge, security agreement or any other security therefor
except as expressly provided herein. Nothing herein contained shall be construed as a substitution
or novation of the Obligations outstanding under, and as defined in, the Existing Revolving Credit
Agreement or instruments securing the same, which shall remain in full force and effect, except as
modified hereby or by instruments executed concurrently herewith or after the execution of the
Existing Revolving Credit

102

 

Agreement and prior to the Effective Date. All interest and fees and expenses, if any, owing
or accruing under or in respect of the Existing Revolving Credit Agreement through the Effective
Date shall be calculated as of the Effective Date (prorated in the case of any fractional periods),
and shall be paid in accordance with the method, and on the dates, specified in the Existing
Revolving Credit Agreement, as if the Existing Revolving Credit Agreement were still in effect.
Nothing expressed or implied in this Agreement shall be construed as a release or other discharge
of any Loan Party under the Existing Revolving Credit Agreement from any of its obligations and
liabilities as a “Borrower” or “Guarantor” thereunder. Each Loan Party hereby (i) confirms and
agrees that each Loan Document to which it is a party is, and shall continue to be, in full force
and effect and is hereby ratified and confirmed in all respects except that on and after the
Effective Date all references in any such Loan Document to “the Revolving Credit Agreement,”
“thereto,” “thereof,” “thereunder” or words of like import referring to the Existing Revolving
Credit Agreement shall mean the Existing Revolving Credit Agreement as amended and restated by this
Agreement and (ii) confirms and agrees that to the extent that any such Loan Document purports to
assign or pledge to the Agent a security interest in or Lien on any collateral as security for the
obligations of the Borrowers or the Guarantors from time to time existing in respect of the
Existing Revolving Credit Agreement and the Loan Documents, such pledge, assignment and/or grant of
the security interest or lien is hereby ratified and confirmed in all respects except as otherwise
expressly provided herein.

103

 

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

	 	 	 	 	 
	 	 	Borrower:
	 
	 	 	 	 
	 	 	ALON USA, LP
	 
	 	 	 	 
	 

	 	By:	 	Alon USA GP, LLC, a Delaware limited
	 

	 	 	 	liability company, its general partner

	 	 	 	 	 
	 

	 	By:	 	/s/ David Wiessman
	 

	 	 	 	 
	 

	 	Name:
	 	David Wiessman
	 

	 	Title:
	 	Chairman of the Board of Managers

	 	 	 
	 

	 	Guarantor Companies:
	 
	 	 
	 

	 	ALON ASSETS, INC.
	 

	 	ALON USA OPERATING, INC
	 

	 	ALON USA REFINING, INC.
	 

	 	ALON USA PIPELINE, INC.
	 

	 	FIN-TEX PIPE LINE COMPANY
	 

	 	T & R ASSETS, INC.
	 

	 	ALON USA ASPHALT, INC.
	 

	 	ALON ASPHALT BAKERSFIELD, INC
	 

	 	ALON USA, INC.
	 

	 	ALON USA ENERGY, INC.
	 

	 	ALON USA CAPITAL, INC.

	 	 	 	 	 
	 

	 	By:	 	/s/ David Wiessman
	 

	 	 	 	 
	 

	 	Name:
	 	David Wiessman
	 

	 	Title:
	 	Chairman of the Board of Directors
	 
	 	 	 	 
	 	 	APPL GP, LLC
	 	 	ALON USA GP, LLC
	 
	 	 	 	 
	 

	 	By:	 	/s/ David Wiessman
	 

	 	 	 	 
	 

	 	Name:
	 	David Wiessman
	 

	 	Title:
	 	Chairman of the Board of Managers

 

 

	 	 	 	 	 
	 	 	ALON USA INTERESTS, LLC
	 
	 	 	 	 
	 

	 	By:	 	/s/ Jeffrey D. Morris
	 

	 	 	 	 
	 

	 	Name:
	 	Jeffrey D. Morris
	 

	 	Title:
	 	Chairman of the Board of Managers
	 
	 	 	 	 
	 	 	APPL LP, LLC
	 	 	ALON USA DELAWARE, LLC
	 	 	ALON PIPELINE LOGISTICS, LLC
	 
	 	 	 	 
	 

	 	By:	 	/s/ David Wiessman
	 

	 	 	 	 
	 

	 	Name:
	 	David Wiessman
	 

	 	Title:
	 	President
	 
	 	 	 	 
	 	 	APPL PETROLEUM PIPELINE, LP
	 	 	By: APPL GP, LLC, its General Partner

	 	 	 	 	 
	 

	 	By:	 	/s/ David Wiessman
	 

	 	 	 	 
	 

	 	Name:
	 	David Wiessman
	 

	 	Title:
	 	President

 

 

	 	 	 	 	 
	 	 	Agent and Lender:
	 
	 	 	 	 
	 	 	ISRAEL DISCOUNT BANK OF NEW YORK
	 
	 	 	 	 
	 

	 	By:	 	/s/ Amir Barash
	 

	 	 	 	 
	 

	 	Name:	 	Amir Barash 
	 

	 	Title:	 	First Vice President 
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kevin Lord
	 

	 	 	 	 
	 

	 	Name:	 	Kevin Lord 
	 

	 	Title:	 	First Vice President 
	 
	 	 	 	 
	 	 	Lenders:
	 
	 	 	 	 
	 	 	BANK LEUMI USA
	 
	 	 	 	 
	 

	 	By:	 	/s/ Yuval Talmy
	 

	 	 	 	 
	 

	 	Name:	 	Yuval Talmy 
	 

	 	Title:	 	First Vice President 
	 
	 	 	 	 
	 

	 	By:	 	/s/ Hanita Musel
	 

	 	 	 	 
	 

	 	Name:	 	Hanita Musel 
	 

	 	Title:	 	Assistant Treasurer

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