Document:

exv10w14

Exhibit 10.14

AMENDED AND RESTATED

SECURITY AGREEMENT

     THIS AMENDED AND RESTATED SECURITY AGREEMENT dated as of August 27, 2007 (this “Security
Agreement”) is by and among HOLLY ENERGY PARTNERS — OPERATING, L.P., a Delaware limited
partnership (“Borrower”), each subsidiary of the Borrower party hereto (together with the
Borrower, the “Grantors” and individually, each a “Grantor”) and UNION BANK OF
CALIFORNIA, N.A., a national association, as Administrative Agent (the “Secured Party”) for
the ratable benefit of itself, the Banks (as defined below), the Issuing Banks (as defined below),
and the Swap Counterparties (as defined below) (together with the Administrative Agent, the Issuing
Banks, the Banks, individually a “Beneficiary”, and collectively, the
“Beneficiaries”).

RECITALS

     A. This Security Agreement is entered into in connection with that certain Amended and
Restated Credit Agreement dated as of August 27, 2007 (as it has been or may be amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”), among the
Borrower, the banks party thereto from time to time (individually, a “Bank” and
collectively, the “Banks”), the Banks issuing letters of credit thereunder from time to
time (individually, an “Issuing Bank” and collectively, the “Issuing Banks”) and
Secured Party.

     B. This Security Agreement is intended as an amendment and restatement of that certain
Security Agreement dated as of July 13, 2004, among the Grantors, the Banks, the Issuing Banks and
Secured Party, as amended heretofore (as so amended “Existing Security Agreement”).

     C. Each Grantor (other than the Borrower) is a Subsidiary of the Borrower and will derive
substantial direct and indirect benefit from (i) the transactions contemplated by the Credit
Agreement and the other Credit Documents (as defined in the Credit Agreement) and (ii) the Interest
Rate Contracts (as defined in the Credit Agreement) entered into by the Borrower or any of its
Subsidiaries with a Bank or an Affiliate of a Bank (each such counterparty, a “Swap
Counterparty”).

     D. It is a requirement under the Credit Agreement that the Grantors shall secure the due
payment and performance of all Obligations (as defined in the Credit Agreement) by entering into
this Security Agreement.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged and confessed, each Grantor hereby agrees
with the Secured Party for the benefit of the Beneficiaries (a) that the Existing Security
Agreement is amended and restated in its entirety and (b) further agrees as follows:

     Section 1. Definitions; Interpretation. (a) All capitalized terms not otherwise
defined in this Security Agreement that are defined in the Credit Agreement shall have the

 

 

meanings assigned to such terms by the Credit Agreement. Any terms used in this Security
Agreement that are defined in the UCC (as defined below) and not otherwise defined herein or in the
Credit Agreement, shall have the meanings assigned to those terms by the UCC. All meanings to
defined terms, unless otherwise indicated, are to be equally applicable to both the singular and
plural forms of the terms defined. The following terms shall have the meanings specified below:

“Accounts” means an “account” as defined in the UCC, including, without limitation,
all of any Grantor’s rights to payment for goods sold or leased, services performed, or
otherwise, whether now in existence or arising from time to time hereafter, including,
without limitation, rights arising under any of the Contracts or evidenced by an account,
note, contract, security agreement, Chattel Paper (including, without limitation, tangible
Chattel Paper and electronic Chattel Paper), or other evidence of indebtedness or security,
together with all of the right, title and interest of any Grantor in and to (i) all security
pledged, assigned, hypothecated or granted to or held by any Grantor to secure the
foregoing, (ii) all of any Grantor’s right, title and interest in and to any goods or
services, the sale of which gave rise thereto, (iii) all guarantees, endorsements and
indemnifications on, or of, any of the foregoing, (iv) all powers of attorney granted to any
Grantor for the execution of any evidence of indebtedness or security or other writing in
connection therewith, (v) all books, correspondence, credit files, records, ledger cards,
invoices, and other papers relating thereto, including without limitation all similar
information stored on a magnetic medium or other similar storage device and other papers and
documents in the possession or under the control of any Grantor or any computer bureau from
time to time acting for any Grantor, (vi) all evidences of the filing of financing
statements and other statements granted to any Grantor and the registration of other
instruments in connection therewith and amendments thereto, notices to other creditors or
secured parties, and certificates from filing or other registration officers, (vii) all
credit information, reports and memoranda relating thereto, and (viii) all other writings
related in any way to the foregoing.

“Cash Collateral” means all amounts from time to time held in any checking, savings,
deposit or other account of such Grantor, including, if applicable, the Cash Collateral
Account, all monies, proceeds or sums due or to become due therefrom or thereon and all
documents (including, but not limited to passbooks, certificates and receipts) evidencing
all funds and investments held in such accounts.

“Chattel Paper” has the meaning set forth in the UCC.

“Collateral” has the meaning set forth in Section 2 of this Security Agreement.

“Contracts” means all contracts to which any Grantor now is, or hereafter will be,
bound, or to which such Grantor is a party, beneficiary or assignee all Insurance Contracts,
and all exhibits, schedules and other attachments to such contracts, as the same may be
amended, supplemented or otherwise modified or replaced from time to time.

“Contract Documents” means all Instruments, Chattel Paper, letters of credit, bonds,
guarantees or similar documents evidencing, representing, arising from or existing in

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respect of, relating to, securing or otherwise supporting the payment of, the Contract
Rights.

“Contract Rights” means (i) all (A) of any Grantor’s rights to payment under any
Contract or Contract Document and (B) payments due and to become due to any Grantor under
any Contract or Contract Document, in each case whether as contractual obligations, damages
or otherwise; (ii) all of any Grantor’s claims, rights, powers, or privileges and remedies
under any Contract or Contract Document; and (iii) all of any Grantor’s rights under any
Contract or Contract Document to make determinations, to exercise any election (including,
but not limited to, election of remedies) or option or to give or receive any notice,
consent, waiver or approval together with full power and authority with respect to any
Contract or Contract Document to demand, receive, enforce or collect any of the foregoing
rights or any property which is the subject of any Contract or Contract Document, to enforce
or execute any checks, or other instruments or orders, to file any claims and to take any
action which, in the reasonable opinion of the Secured Party, may be necessary or advisable
in connection with any of the foregoing.

“Document” means a bill of lading, dock warrant, dock receipt, warehouse receipt or
order for the delivery of goods, and also any other document which in the regular course of
business or financing is treated as adequately evidencing that the person in possession of
it is entitled to receive, hold and dispose of the document and the goods it covers.

“Equipment” means any equipment now or hereafter owned or leased by any Grantor, or
in which any Grantor holds or acquires any other right, title or interest, constituting
“equipment” under the UCC, including, without limitation, all surface or subsurface
machinery, equipment, facilities, supplies, or other tangible personal property, including
tubing, rods, pumps, pumping units and engines, pipe, pipelines, meters, apparatus, boilers,
compressors, liquid extractors, connectors, valves, fittings, power plants, poles, lines,
cables, wires, transformers, starters and controllers, machine shops, tools, machinery and
parts, storage yards and equipment stored therein, buildings and camps, telegraph,
telephone, and other communication systems, loading docks, loading racks, and shipping
facilities, and any manuals, instructions, blueprints, computer software (including software
that is imbedded in and part of the equipment), and similar items which relate to the above,
and any and all additions, substitutions and replacements of any of the foregoing, wherever
located together with all improvements thereon and all attachments, components, parts,
equipment and accessories installed thereon or affixed thereto.

“Fixtures” means any fixtures now or hereafter owned or leased by any Grantor, or in
which any Grantor holds or acquires any other right, title or interest, constituting
“fixtures” under the UCC, including without limitation any and all additions, substitutions
and replacements of any of the foregoing, wherever located together with all improvements
thereon and all attachments, components, parts, equipment and accessories installed thereon
or affixed thereto.

“General Intangibles” means all general intangibles now or hereafter owned by any
Grantor, or in which any Grantor holds or acquires any other right, title or interest,

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constituting “general intangibles” or “payment intangibles” under the UCC, including, but
not limited to, all trademarks, trademark applications, trademark registrations, tradenames,
fictitious business names, business names, company names, business identifiers, prints,
labels, trade styles and service marks (whether or not registered), trade dress, including
logos and/or designs, copyrights, patents, patent applications, goodwill of any Grantor’s
business symbolized by any of the foregoing, trade secrets, license rights, license
agreements, permits, franchises, and any rights to tax refunds to which any Grantor is now
or hereafter may be entitled.

“Instrument” means an “instrument” as defined in the UCC, including, without
limitation, any Negotiable Instrument, or any other writing which evidences a right to the
payment of money and is not itself a security agreement or lease and is of a type which is
in the ordinary course of business transferred by delivery with any necessary endorsement or
assignment (other than Instruments constituting Chattel Paper).

“Insurance Contracts” means all contracts and policies of insurance and re-insurance
maintained or required to be maintained by or on behalf of any Grantor under the Credit
Documents.

“Interest Rate Contract” has the meaning set forth in the Credit Agreement.

“Inventory” means all of the inventory of any Grantor, or in which any Grantor holds
or acquires any right, title or interest, of every type or description, now owned or
hereafter acquired and wherever located, whether raw, in process or finished, and all
materials usable in processing the same and all documents of title covering any inventory,
including, without limitation, work in process, materials used or consumed in any Grantor’s
business, now owned or hereafter acquired or manufactured by any Grantor and held for sale
in the ordinary course of its business, all present and future substitutions therefor, parts
and accessories thereof and all additions thereto, all Proceeds thereof and products of such
inventory in any form whatsoever, and any other item constituting “inventory” under the UCC.

“Inventory Records” means all books, records, other similar property, and General
Intangibles at any time relating to Inventory.

“Investment Property” means “investment property” as defined in the UCC, including,
without limitation, all securities (whether certificated or uncertificated), security
entitlements, securities accounts, commodity contracts, and commodity accounts.

“Negotiable Instrument” means a “negotiable instrument” as defined in the UCC.

“Proceeds” means all proceeds (as defined in the UCC) of any or all of the
Collateral, including without limitation (i) any and all proceeds of, all claims for, and
all rights of any Grantor to receive the return of any premiums for, any insurance,
indemnity, warranty or guaranty payable from time to time with respect to any of the
Collateral, (ii) any and all payments (in any form whatsoever) made or due and payable from
time to time in connection with any requisition, confiscation, condemnation, seizure or
forfeiture of all or any part of the Collateral by any Governmental Authority (or any Person
acting

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under color of any Governmental Authority), (iii) all proceeds received or receivable when
any or all of the Collateral is sold, exchanged or otherwise disposed, whether voluntarily,
involuntarily, in foreclosure or otherwise, (iv) all claims of any Grantor for damages
arising out of, or for breach of or default under, any Collateral, (v) all rights of any
Grantor to terminate, amend, supplement, modify or waive performance under any Contracts, to
perform thereunder and to compel performance and otherwise exercise all remedies thereunder,
and (vi) any and all other amounts from time to time paid or payable under or in connection
with any of the Collateral.

“Secured Obligations” means all Obligations now or hereafter existing, including any
extensions, modifications, substitutions, amendments and renewals thereof, whether for
principal, interest, fees, expenses, indemnification, or otherwise.

“Security Agreement” means this Amended and Restated Security Agreement, as the same
may be modified, supplemented or amended from time to time in accordance with its terms.

“UCC” shall mean the Uniform Commercial Code as the same may, from time to time, be
in effect in the State of Texas; provided, however, in the event that, by reason of
mandatory provisions of law, any or all of the attachment, perfection or priority of the
security interest in any Collateral is governed by the Uniform Commercial Code as in effect
in a jurisdiction other than the State of Texas, the term “UCC” shall mean the Uniform
Commercial Code as in effect in such other jurisdiction for purposes of the provisions
hereof relating to such attachment, perfection or priority and for purposes of definitions
related to such provisions.

     (b) All meanings to defined terms, unless otherwise indicated, are to be equally applicable to
both the singular and plural forms of the terms defined. Article, Section, Schedule, and Exhibit
references are to Articles and Sections of and Schedules and Exhibits to this Security Agreement,
unless otherwise specified. All references to instruments, documents, contracts, and agreements
are references to such instruments, documents, contracts, and agreements as the same may be
amended, supplemented, and otherwise modified from time to time, unless otherwise specified. The
words “hereof”, “herein” and “hereunder” and words of similar import when used in this Security
Agreement shall refer to this Security Agreement as a whole and not to any particular provision of
this Security Agreement. As used herein, the term “including” means “including, without
limitation”. Paragraph headings have been inserted in this Security Agreement as a matter of
convenience for reference only and it is agreed that such paragraph headings are not a part of this
Security Agreement and shall not be used in the interpretation of any provision of this Security
Agreement.

     Section 2. Assignment, Pledge and Grant of Security Interest.

     (a) As collateral security for the prompt and complete payment and performance when due of all
Secured Obligations, each Grantor hereby assigns, pledges, and grants to the Secured Party for the
benefit of the Beneficiaries a lien on and continuing security interest in all of such Grantor’s
right, title and interest in, to and under, all items described in this Section 2,

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whether now owned or hereafter acquired by such Grantor and wherever located and whether now
owned or hereafter existing or arising (collectively, the “Collateral”):

	 	(i)	 	all Contracts, all Contract Rights, Contract Documents
and Accounts associated with such Contracts and each and every document
granting security to such Grantor under any such Contract;
	 
	 	(ii)	 	all Accounts;
	 
	 	(iii)	 	all Inventory;
	 
	 	(iv)	 	all Equipment;
	 
	 	(v)	 	all General Intangibles;
	 
	 	(vi)	 	all Investment Property (other than (A) any Investment
Property to the extent pledged by a Grantor under the Amended and Restated
Pledge Agreement dated as of August 27, 2007 among the Borrower, certain
Subsidiaries of the Borrower party thereto from time to time, and the
Secured Party, (B) the Equity Interest in Rio Grande Pipeline Company owned
by Navajo Southern, Inc., (C) the Equity Interest in Plains JV owned by
Plains Holdco, (D) the Equity Interest in UNEV JV owned by UNEV Holdco, and
(E) the Equity Interest in any Future JVs owned by Future Holdcos);
	 
	 	(vii)	 	all Fixtures;
	 
	 	(viii)	 	all Cash Collateral;
	 
	 	(ix)	 	any Legal Requirements now or hereafter held by such
Grantor (except that any Legal Requirement which would by its terms or
under applicable law become void, voidable, terminable or revocable by
being subjected to the Lien of this Security Agreement or in which a Lien
is not permitted to be granted under applicable law, is hereby excluded
from such Lien to the extent necessary so as to avoid such voidness,
voidability, terminability or revocability);
	 
	 	(x)	 	any right to receive a payment under any Interest Rate
Contract in connection with a termination thereof;
	 
	 	(xi)	 	(A) all policies of insurance and Insurance Contracts,
now or hereafter held by or on behalf of such Grantor, including casualty
and liability, business interruption, and any title insurance, (B) all
Proceeds of insurance, and (C) all rights, now or hereafter held by such
Grantor to any warranties of any manufacturer or contractor of any other
Person;
	 
	 	(xii)	 	any and all liens and security interests (together
with the documents evidencing such security interests) granted to such
Grantor by an obligor 

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	 	 	 	to secure such obligor’s obligations owing under any Instrument,
Chattel Paper, or Contract which is pledged hereunder or with respect to
which a security interest in such Grantor’s rights in such Instrument,
Chattel Paper, or Contract is granted hereunder;
	 
	 	(xiii)	 	any and all guaranties given by any Person for the benefit of such
Grantor which guarantees the obligations of an obligor under any
Instrument, Chattel Paper or Contract, which are pledged hereunder;
	 
	 	(xiv)	 	without limiting the generality of the foregoing, all
other personal property, goods, Instruments, Chattel Paper, Documents,
Fixtures, credits, claims, demands and assets of such Grantor whether now
existing or hereafter acquired from time to time; and
	 
	 	(xv)	 	any and all additions, accessions and improvements to,
all substitutions and replacements for and all products and Proceeds of or
derived from all of the items described above in this Section 2.

     (b) Notwithstanding anything contained herein to the contrary, it is the intention of each
Grantor, the Secured Party and the other Beneficiaries that the amount of the Secured Obligation
secured by each Grantor’s interests in any of its Property shall be in, but not in excess of, the
maximum amount permitted by fraudulent conveyance, fraudulent transfer and other similar law, rule
or regulation of any Governmental Authority applicable to such Grantor. Accordingly,
notwithstanding anything to the contrary contained in this Security Agreement or in any other
agreement or instrument executed in connection with the payment of any of the Secured Obligations,
the amount of the Secured Obligations secured by each Grantor’s interests in any of its Property
pursuant to this Security Agreement shall be limited to an aggregate amount equal to the largest
amount that would not render such Grantor’s obligations hereunder or the liens and security
interest granted to the Secured Party hereunder subject to avoidance under Section 548 of the
United States Bankruptcy Code or any comparable provision of any other applicable law.

     Section 3. Representations and Warranties. Each Grantor hereby represents and
warrants the following to the Secured Party and the other Beneficiaries:

     (a) Records. Such Grantor’s sole jurisdiction of formation and type of organization
are as set forth in Schedule 1 attached hereto. Other than for Accounts which individually
or in the aggregate do not exceed $500,000, none of the Accounts is evidenced by a promissory note
or other instrument.

     (b) Other Liens. Such Grantor is, and will be the record, legal, and beneficial owner
of all of the Collateral pledged by such Grantor free and clear of any Lien, except for the
Permitted Liens. No effective financing statement or other instrument similar in effect covering
all or any part of the Collateral is, or will be, on file in any recording office, except such as
may be filed in connection with this Security Agreement or in connection with other Permitted Liens
or for which satisfactory releases have been received by the Secured Party.

     (c) Lien Priority and Perfection.

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          (i) Subject only to Permitted Liens, this Security Agreement creates valid and continuing
security interests in the Collateral, securing the payment and performance of all the Secured
Obligations. Upon the filing of financing statements with the jurisdiction listed in Schedule
1, the security interests granted to the Secured Party hereunder will constitute valid
first-priority perfected security interests in all Collateral with respect to which a security
interest can be perfected by the filing of a financing statement, subject only to Permitted Liens.

          (ii) No consent of any other Person and no authorization, approval, or other action by, and no
notice to or filing with any Governmental Authority is required (A) for the grant by such Grantor
of the pledge, assignment, and security interest granted hereby or for the execution, delivery, or
performance of this Security Agreement by such Grantor, (B) for the validity, perfection, or
maintenance of the pledge, assignment, lien, and security interest created hereby (including the
first-priority (subject to Permitted Liens) nature thereof), except for security interests that
cannot be perfected by filing under the UCC, or (C) for the exercise by the Secured Party of the
rights provided for in this Security Agreement or the remedies in respect of the Collateral
pursuant to this Security Agreement, except (1) those consents to assignment of licenses, permits,
approvals, and other rights that are as a matter of law not assignable, (2) those consents,
approvals, authorizations, actions, notices or filings which have been duly obtained or made and,
in the case of the maintenance of perfection, the filing of continuation statements under the UCC,
and (3) those filings and actions described in Section 3(c)(i).

     (d) Tax Identification Number and Organizational Number. The federal tax
identification number of such Grantor and the organizational number (if any) of such Grantor are as
set forth in Schedule 1.

     (e) Tradenames; Prior Names. Except as set forth on Schedule 1, such Grantor
has not conducted business under any name other than its current name during the five years
immediately prior to the date of this Security Agreement.

     Section 4. Covenants.

     (a) Further Assurances.

          (i) Each Grantor agrees that from time to time, at its expense, such Grantor shall promptly
execute and deliver all instruments and documents, and take all action, that may be reasonably
necessary or desirable, or that the Secured Party may reasonably request, in order to perfect and
protect any pledge, assignment, or security interest granted or intended to be granted hereby or to
enable the Secured Party to exercise and enforce its rights and remedies hereunder with respect to
any Collateral. Without limiting the generality of the foregoing, each Grantor (A) at the request
of Secured Party, shall execute such instruments, endorsements or notices, as may be reasonably
necessary or desirable or as the Secured Party may reasonably request, in order to perfect and
preserve the assignments and security interests granted or purported to be granted hereby, (B)
shall, if any Collateral shall be evidenced by a promissory note or other Instrument or Chattel
Paper and such promissory note, Instrument or Chattel Paper shall, individually or in the
aggregate, exceed $500,000, deliver and pledge to the Secured Party hereunder such note or
Instrument or Chattel Paper duly endorsed and accompanied by duly executed instruments of transfer
or assignment, all in form and substance satisfactory to the

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Secured Party, and (C) authorizes the Secured Party to file any financing statements,
amendments or continuations without the signature of such Grantor to the extent permitted by
applicable law in order to perfect or maintain the perfection of any security interest granted
under this Security Agreement (including, without limitation, financing statements using an “all
assets” or “all personal property” collateral description). Notwithstanding anything in this
Security Agreement to the contrary, the Grantor shall not be required to take any action with
respect to the perfection of the security interest in any Cash Collateral which is not then held by
a Lender or the Borrower or a Subsidiary of the Borrower.

          (ii) Following written request by the Secured Party, each Grantor shall pay all filing,
registration and recording fees and all refiling, re-registration and re-recording fees, and all
other reasonable expenses incident to the execution and acknowledgment of this Security Agreement,
any assurance, and all federal, state, county and municipal stamp taxes and other taxes, duties,
imports, assessments and charges arising out of or in connection with the execution and delivery of
this Security Agreement, any agreement supplemental hereto, any financing statements, and any
instruments of further assurance.

          (iii) Each Grantor shall promptly provide to the Secured Party all information and evidence
the Secured Party may reasonably request concerning the Collateral to enable the Secured Party to
enforce the provisions of this Security Agreement.

     Section 5. Change of Name; State of Formation. Each Grantor shall give the Secured
Party at least 30 days’ prior written notice before it (i) in the case of any Grantor that is not a
“registered organization” (as such term is defined in Section 9-102 of the UCC), changes the
location of its principal place of business and chief executive office, (ii) changes the location
of its jurisdiction of formation or organization, (iii) changes the location of the original copies
of any Chattel Paper evidencing Accounts if such Chattel Paper, individually or in the aggregate,
exceeds $500,000, or (iv) changes its name or uses a trade name other than its current name used on
the date hereof. Other than as permitted by Section 6.09 of the Credit Agreement or as permitted
in the preceding sentence, no Grantor shall amend, supplement, modify or restate its articles or
certificate of incorporation, bylaws, limited liability company agreements, or other equivalent
organizational documents, without the prior written consent of the Secured Party.

     (a) Right of Inspection. Each Grantor shall hold and preserve, at its own cost and
expense reasonably satisfactory and complete records of the Collateral, including, but not limited
to, Instruments, Chattel Paper, Contracts, and records with respect to the Accounts, and will
permit representatives of the Secured Party, upon reasonable advance notice, at any time during
normal business hours to inspect and copy them. Upon the occurrence and during the continuation of
any Event of Default, at the Secured Party’s request, each Grantor shall promptly deliver copies of
any and all such records to the Secured Party.

     (b) Liability Under Contracts and Accounts. Notwithstanding anything in this Security
Agreement to the contrary, (i) the execution of this Security Agreement shall not release any
Grantor from its obligations and duties under any of the Contract Documents, or any other contract
or instrument which are part of the Collateral and Accounts included in the Collateral, (ii) the
exercise by the Secured Party of any of its rights hereunder shall not release any Grantor from any
of its duties or obligations under any Contract Documents, or any other Contract or

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Instrument which are part of the Collateral and Accounts included in the Collateral, and (iii)
the Secured Party shall not have any obligation or liability under any Contract Documents, or any
other contract or instrument which are part of the Collateral and Accounts included in the
Collateral by reason of the execution and delivery of this Security Agreement, nor shall the
Secured Party be obligated to perform any of the obligations or duties of any Grantor thereunder or
to take any action to collect or enforce any claim for payment assigned hereunder.

     (c) Transfer of Certain Collateral; Release of Certain Security Interest. Each
Grantor agrees that it shall not sell, assign, or otherwise dispose of any Collateral, except as
otherwise permitted under the Credit Agreement. The Secured Party shall promptly, at the Grantors’
expense, execute and deliver all further instruments and documents, and take all further action
that a Grantor may reasonably request in order to release its security interest in any Collateral
which is disposed of in accordance with the terms of the Credit Agreement.

     (d) Accounts. Each Grantor agrees that it will use commercially reasonable efforts to
ensure that each Account (i) is and will be, in all material respects, the genuine, legal, valid,
and binding obligations of the account debtor in respect thereof, representing an unsatisfied
obligation of such account debtor, (ii) is and will be, in all material respects, enforceable in
accordance with its terms, is not and will not be subject to any setoffs, defenses, taxes,
counterclaims, except in the ordinary course of business, (iii) is and will be, in all material
respects, in compliance with all applicable laws, whether federal, state, local or foreign, and
(iv) if evidenced by Chattel Paper, will not require the consent of the account debtor in respect
thereof in connection with its assignment hereunder.

     (e) Negotiable Instrument. If any Grantor shall at any time hold or acquire any
Negotiable Instruments, including promissory notes, and such Negotiable Instruments, individually
or in the aggregate, exceed $500,000, then such Grantor shall forthwith endorse, assign and deliver
the same to the Secured Party, accompanied by such instruments of transfer or assignment duly
executed in blank as the Secured Party may from time to time reasonably request.

     (f) Other Covenants of Grantor. Each Grantor agrees that (i) any action or proceeding
to enforce this Security Agreement may be taken by the Secured Party either in such Grantor’s name
or in the Secured Party’s name, as the Secured Party may deem necessary, and (ii) such Grantor
will, until the indefeasible payment in full in cash of the Secured Obligations (including all
Letter of Credit Obligations), the termination or expiration of all Letters of Credit and the
termination of all obligations of the Issuing Banks and the Banks in respect of Letters of Credit,
the termination of all Interest Rate Contracts and the termination of all obligations of the Banks
in respect of Interest Rate Contracts, and the termination or expiration of the Commitments,
warrant and defend its title to the Collateral and the interest of the Secured Party in the
Collateral against any claim or demand of any Persons (other than Permitted Liens) which could
reasonably be expected to materially adversely affect such Grantor’s title to, or the Secured
Party’s right or interest in, such Collateral.

     Section 6. Termination of Security Interest. Upon the indefeasible payment in full in
cash of the Secured Obligations (including all Letter of Credit Obligations), the termination or
expiration of all Letters of Credit and the termination of all obligations of the Issuing Banks and

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the Banks in respect of Letters of Credit, the termination of all Interest Rate Contracts and
the termination of all obligations of the Banks in respect of Interest Rate Contracts, and the
termination or expiration of the Commitments, the security interest granted hereby shall terminate
and all rights to the Collateral shall revert to the applicable Grantor to the extent such
Collateral shall not have been sold or otherwise applied pursuant to the terms hereof. Upon any
such termination, the Secured Party will promptly, at the Grantors’ expense, execute and deliver to
the applicable Grantor such documents (including, without limitation, UCC-3 termination statements)
as such Grantor shall reasonably request to evidence such termination.

     Section 7. Reinstatement. If, at any time after payment in full of all Secured
Obligations and termination of the Secured Party’s security interest, any payments on the Secured
Obligations previously made must be disgorged by the Secured Party for any reason whatsoever,
including, without limitation, the insolvency, bankruptcy or reorganization of any Grantor or any
other Person, this Security Agreement and the Secured Party’s security interests herein shall be
reinstated as to all disgorged payments as though such payments had not been made, and each Grantor
shall sign and deliver to the Secured Party all documents, and shall do such other acts and things,
as may be reasonably necessary to reinstate and perfect the Secured Party’s security interest
(other than the Secured Party’s security interest in Cash Collateral that is held by a Person other
than a Lender, the Borrower or any Subsidiary of the Borrower). EACH GRANTOR SHALL DEFEND AND
INDEMNIFY EACH BENEFICIARY FROM AND AGAINST ANY CLAIM, DAMAGE, LOSS, LIABILITY, COST OR EXPENSE
UNDER THIS SECTION 7 (INCLUDING REASONABLE ATTORNEYS’ FEES AND EXPENSES) IN THE DEFENSE OF ANY SUCH
ACTION OR SUIT INCLUDING SUCH CLAIM, DAMAGE, LOSS, LIABILITY, COST, OR EXPENSE ARISING AS A RESULT
OF THE INDEMNIFIED BENEFICIARY’S OWN NEGLIGENCE BUT EXCLUDING SUCH CLAIM, DAMAGE, LOSS, LIABILITY,
COST, OR EXPENSE THAT IS FOUND IN A FINAL, NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT
JURISDICTION TO HAVE RESULTED FROM SUCH INDEMNIFIED BENEFICIARY’S GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT.

     Section 8. Remedies upon Event of Default.

     (a) If any Event of Default has occurred and is continuing, the Secured Party may (and shall
at the written request of the Majority Banks), (i) proceed to protect and enforce the rights vested
in it by this Security Agreement or otherwise available to it, including but not limited to, the
right to cause all revenues and other moneys pledged hereby as Collateral to be paid directly to
it, and to enforce its rights hereunder to such payments and all other rights hereunder by such
appropriate judicial proceedings as it shall deem most effective to protect and enforce any of such
rights, either at law or in equity or otherwise, whether for specific enforcement of any covenant
or agreement contained in any of the Contract Documents, or in aid of the exercise of any power
therein or herein granted, or for any foreclosure hereunder and sale under a judgment or decree in
any judicial proceeding, or to enforce any other legal or equitable right vested in it by this
Security Agreement or by law; (ii) cause any action at law or suit in equity or other proceeding to
be instituted and prosecuted and enforce any rights hereunder or included in the Collateral,
subject to the provisions and requirements thereof; (iii) sell or otherwise dispose of any or all
of the Collateral or cause the Collateral to be sold or otherwise disposed of in one or more sales
or transactions, at such prices and in such manner as may be

11

 

commercially reasonable, and for cash or on credit or for future delivery, without assumption
of any credit risk, at public or private sale, without demand of performance or notice of intention
to sell or of time or place of sale (except such notice as is required by applicable statute and
cannot be waived), it being agreed that the Secured Party may be a purchaser on behalf of the
Beneficiaries or on its own behalf at any such sale and that the Secured Party, any other
Beneficiary, or any other Person who may be a bona fide purchaser for value and without notice of
any claims of any or all of the Collateral so sold shall thereafter hold the same absolutely free
from any claim or right of whatsoever kind, including any equity of redemption of any Grantor, any
such demand, notice or right and equity being hereby expressly waived and released to the extent
permitted by law; (iv) incur reasonable expenses, including reasonable attorneys’ fees, reasonable
consultants’ fees, and other costs appropriate to the exercise of any right or power under this
Security Agreement; (v) perform any obligation of any Grantor hereunder and make payments,
purchase, contest or compromise any encumbrance, charge or lien, and pay taxes and expenses,
without, however, any obligation to do so; (vi) in connection with any acceleration and
foreclosure, take possession of the Collateral and render it usable and repair and renovate the
same, without, however, any obligation to do so, and enter upon any location where the Collateral
may be located for that purpose, control, manage, operate, rent and lease the Collateral, collect
all rents and income from the Collateral and apply the same to reimburse the Beneficiaries for any
cost or expenses incurred hereunder or under any of the Credit Documents and to the payment or
performance of any Grantor’s obligations hereunder or under any of the Credit Documents, and apply
the balance to the other Secured Obligations and any remaining excess balance to whomsoever is
legally entitled thereto; (vii) secure the appointment of a receiver for the Collateral or any part
thereof; (viii) require any Grantor to, and each Grantor hereby agrees that it will at its expense
and upon request of the Secured Party forthwith, assemble all or part of the Collateral as directed
by the Secured Party and make it available to the Secured Party at a place to be designated by the
Secured Party which is reasonably convenient to both parties; (ix) exercise any other or additional
rights or remedies granted to a secured party under the UCC; or (x) occupy any premises owned or
leased by any Grantor where the Collateral or any part thereof is assembled for a reasonable period
in order to effectuate its rights and remedies hereunder or under law, without obligation to any
Grantor in respect of such occupation. If, pursuant to applicable law, prior notice of sale of the
Collateral under this Section is required to be given to any Grantor, each Grantor hereby
acknowledges that the minimum time required by such applicable law, or if no minimum time is
specified, 10 days, shall be deemed a reasonable notice period. The Secured Party shall not be
obligated to make any sale of Collateral regardless of notice of sale having been given. The
Secured Party may adjourn any public or private sale from time to time by announcement at the time
and place fixed therefor, and such sale may, without further notice, be made at the time and place
to which it was so adjourned.

     (b) All reasonable costs and expenses (including reasonable attorneys’ fees and expenses)
incurred by the Secured Party in connection with any suit or proceeding in connection with the
performance by the Secured Party of any of the agreements contained in any of the Contract
Documents, or in connection with any exercise of its rights or remedies hereunder, pursuant to the
terms of this Security Agreement, shall constitute additional indebtedness secured by this Security
Agreement and shall be paid on demand by the Grantors to the Secured Party on behalf of the
Beneficiaries.

12

 

     Section 9. Remedies Cumulative; Delay Not Waiver.

     (a) No right, power or remedy herein conferred upon or reserved to the Secured Party is
intended to be exclusive of any other right, power or remedy and every such right, power and remedy
shall, to the extent permitted by law, be cumulative and in addition to every other right, power
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. Resort to any or all
security now or hereafter held by the Secured Party may be taken concurrently or successively and
in one or several consolidated or independent judicial actions or lawfully taken nonjudicial
proceedings, or both.

     (b) No delay or omission of the Secured Party to exercise any right or power accruing upon the
occurrence and during the continuance of any Event of Default as aforesaid shall impair any such
right or power or shall be construed to be a waiver of any such Event of Default or an acquiescence
therein; and every power and remedy given by this Security Agreement may be exercised from time to
time, and as often as shall be deemed expedient, by the Secured Party.

     Section 10. Contract Rights. Upon the occurrence and during the continuance of an
Event of Default, the Secured Party may exercise any of the Contract Rights and remedies of any
Grantor under or in connection with the Instruments, Chattel Paper, or Contracts which represent
Accounts, the General Intangibles, or which otherwise relate to the Collateral, including, without
limitation, any rights of any Grantor to demand or otherwise require payment of any amount under,
or performance of any provisions of, the Instruments, Chattel Paper, or Contracts which represent
Accounts, or the General Intangibles.

     Section 11. Accounts.

     (a) Upon the occurrence and during the continuance of an Event of Default, the Secured Party
may, or may direct any Grantor to, take any action reasonably necessary or advisable to enforce
collection of the Accounts, including, without limitation, notifying the account debtors or
obligors under any Accounts of the assignment of such Accounts to the Secured Party and directing
such account debtors or obligors to make payment of all amounts due or to become due directly to
the Secured Party. Upon such notification and direction, and at the expense of the Grantors, the
Secured Party may enforce collection of any such Accounts, and adjust, settle, or compromise the
amount or payment thereof in the same manner and to the same extent as any Grantor might have done.

     (b) Upon the occurrence and during the continuance of an Event of Default, and upon receipt by
any Grantor of written notice from the Secured Party that an Event of Default has occurred and is
continuing, all amounts and proceeds (including instruments) received by such Grantor in respect of
the Accounts shall be received in trust for the benefit of the Secured Party hereunder, shall be
segregated from other funds of such Grantor, and shall promptly be paid over to the Secured Party
in the same form as so received (with any necessary indorsement) to be held as Collateral.
Following receipt of such notice and prior to the waiver or cure of the applicable Event of
Default, no Grantor shall adjust, settle, or compromise the amount or payment of any

13

 

Account, nor release wholly or partly any account debtor or obligor thereof, nor allow any
credit or discount thereon.

     Section 12. Application of Collateral. The proceeds of any sale, or other realization
(other than that received from a sale or other realization permitted by the Credit Agreement) upon
all or any part of the Collateral pledged by any Grantor shall be applied by the Secured Party as
set forth in Section 7.06 of the Credit Agreement.

     Section 13. Secured Party as Attorney-in-Fact for Grantor. Each Grantor hereby
constitutes and irrevocably appoints the Secured Party, acting for and on behalf of itself and the
Beneficiaries and each successor or assign of the Secured Party and the Beneficiaries, the true and
lawful attorney-in-fact of such Grantor, with full power and authority in the place and stead of
such Grantor and in the name of such Grantor, the Secured Party or otherwise to take any action and
execute any instrument at the written direction of the Beneficiaries and enforce all rights,
interests and remedies of such Grantor with respect to the Collateral, including the right:

     (a) to ask, require, demand, receive and give acquittance for any and all moneys and claims
for moneys due and to become due under or arising out of the any of the other Collateral, including
without limitation, any Insurance Contracts;

     (b) to elect remedies thereunder and to endorse any checks or other instruments or orders in
connection therewith;

     (c) to file any claims or take any action or institute any proceedings in connection therewith
which the Secured Party may deem to be reasonably necessary or advisable;

     (d) to pay, settle or compromise all bills and claims which may be or become liens or security
interests against any or all of the Collateral, or any part thereof, unless a bond or other
security satisfactory to the Secured Party has been provided; and

     (e) upon foreclosure, to do any and every act which any Grantor may do on its behalf with
respect to the Collateral or any part thereof and to exercise any or all of such Grantor’s rights
and remedies under any or all of the Collateral;

provided, however, that the Secured Party shall not exercise any such rights except
upon the occurrence and continuation of an Event of Default. This power of attorney is a power
coupled with an interest and shall be irrevocable.

     Section 14. Secured Party May Perform. The Secured Party may from time-to-time
perform any act which any Grantor has agreed hereunder to perform and which such Grantor shall fail
to promptly perform after being requested in writing to so perform (it being understood that no
such request need be given after the occurrence and during the continuance of any Event of Default
and after notice thereof by the Secured Party to any Grantor) and the Secured Party may from
time-to-time take any other action which the Secured Party deems reasonably necessary for the
maintenance, preservation or protection of any of the Collateral or of its security interest
therein, and the reasonable expenses of the Secured Party incurred in connection therewith shall be
part of the Secured Obligations and shall be secured hereby.

14

 

     Section 15. Secured Party Has No Duty. The powers conferred on the Secured Party
hereunder are solely to protect its interest in the Collateral and shall not impose any duty on it
to exercise any such powers. Except for reasonable care of any Collateral in its possession and
the accounting for moneys actually received by it hereunder, the Secured Party shall have no duty
as to any Collateral or responsibility for taking any necessary steps to preserve rights against
prior parties or any other rights pertaining to any Collateral.

     Section 16. Reasonable Care. The Secured Party shall be deemed to have exercised
reasonable care in the custody and preservation of the Collateral in its possession if the
Collateral is accorded treatment substantially equal to that which the Secured Party accords its
own Property.

     Section 17. Payments Held in Trust. After the occurrence and during the continuance
of an Event of Default, all payments received by any Grantor under or in connection with any
Collateral shall be received in trust for the benefit of the Secured Party, and shall be segregated
from other funds of such Grantor and shall be forthwith paid over to the Secured Party in the same
form as received (with any necessary endorsement).

     Section 18. Miscellaneous.

     (a) Expenses. Each Grantor will upon demand pay to the Secured Party for its benefit
and the benefit of the Beneficiaries the amount of any reasonable out-of-pocket expenses, including
the reasonable fees and disbursements of its counsel and of any experts, which the Secured Party
and the Beneficiaries may incur in connection with (i) the custody, preservation, use, or operation
of, or the sale, collection, or other realization of, any of the Collateral, (ii) the exercise or
enforcement of any of the rights of the Secured Party or any Beneficiary hereunder, and (iii) the
failure by any Grantor to perform or observe any of the provisions hereof.

     (b) Amendments; Etc. No amendment or waiver of any provision of this Security
Agreement nor consent to any departure by any Grantor herefrom shall be effective unless the same
shall be in writing and authenticated by the affected Grantor, the Secured Party and either, as
required by the Credit Agreement, the Majority Banks or all of the Banks, and then such waiver or
consent shall be effective only in the specific instance and for the specific purpose for which
given.

     (c) Addresses for Notices. All notices and other communications provided for
hereunder shall be made in the manner and to the addresses set forth in the Credit Agreement or on
the signature page hereto.

     (d) Continuing Security Interest; Transfer of Interest. This Security Agreement shall
create a continuing security interest in the Collateral and, unless expressly released by the
Secured Party, shall (a) remain in full force and effect until the indefeasible payment in full in
cash of the Secured Obligations (including all Letter of Credit Obligations), the termination or
expiration of all Letters of Credit and the termination of all obligations of the Issuing Banks and
the Banks in respect of Letters of Credit, the termination of all Interest Rate Contracts and the
termination of all obligations of the Banks in respect of Interest Rate Contracts, and the
termination or expiration of the Commitments, (b) be binding upon each Grantor and its

15

 

successors, tranferees and assigns, and (c) inure, together with the rights and remedies of
the Secured Party hereunder, to the benefit of and be binding upon, the Secured Party, the Issuing
Banks, and the Banks and their respective successors, transferees, and assigns, and to the benefit
of and be binding upon, the Swap Counterparties, and each of their respective successors,
transferees, and assigns to the extent such successors, transferees, and assigns of a Swap
Counterparty is a Bank or an Affiliate of a Bank. Without limiting the generality of the foregoing
clause, when any Bank assigns or otherwise transfers any interest held by it under the Credit
Agreement or other Credit Document to any other Person pursuant to the terms of the Credit
Agreement or such other Credit Document, that other Person shall thereupon become vested with all
the benefits held by such Bank under this Security Agreement.

     (e) Severability. Wherever possible each provision of this Security Agreement shall
be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Security Agreement shall be prohibited by or invalid under such law, such
provision shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this Security
Agreement.

     (f) Choice of Law. This Security Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Texas, except to the extent that the validity
or perfection of the security interests hereunder, or remedies hereunder, in respect of any
particular Collateral are governed by the laws of a jurisdiction other than the state of Texas.

     (g) Counterparts. The parties may execute this Security Agreement in any number of
duplicate originals, each of which constitutes an original, and all of which, collectively,
constitute only one agreement. The parties may execute this Security Agreement in counterparts,
each of which constitutes an original, and all of which, collectively, constitute only one
agreement. Delivery of an executed counterpart signature page by facsimile is as effective as
executing and delivering this Security Agreement in the presence of the other parties to this
Security Agreement. In proving this Security Agreement, a party must produce or account only for
the executed counterpart of the party to be charged.

     (h) Headings. Paragraph headings have been inserted in this Security Agreement as a
matter of convenience for reference only and it is agreed that such paragraph headings are not a
part of this Security Agreement and shall not be used in the interpretation of any provision of
this Security Agreement.

     (i) Conflicts. In the event of any explicit or implicit conflict between any
provision of this Security Agreement and any provision of the Credit Agreement, the terms of the
Credit Agreement shall be controlling.

     (j) Additional Grantors. Pursuant to Section 5.10 of the Credit Agreement, each
Subsidiary of the Borrower (other than a Restricted Subsidiary) that was not in existence on the
date of the Credit Agreement is required to enter into this Security Agreement as a Grantor upon
becoming a Subsidiary of the Borrower. Upon execution and delivery after the date hereof by the
Secured Party and such Subsidiary of an instrument in the form of Annex 1, such Subsidiary
shall become a Grantor hereunder with the same force and effect as if originally named as a Grantor
herein. The execution and delivery of any instrument adding an additional Grantor as a

16

 

party to this Security Agreement shall not require the consent of any other Grantor hereunder.
The rights and obligations of each Grantor hereunder shall remain in full force and effect
notwithstanding the addition of any new Grantor as a party to this Security Agreement.

     (k) Amendment and Restatement; Confirmation of Liens. This Security Agreement is an
amendment and restatement of the Existing Security Agreement and supersedes the Existing Security
Agreement in its entirety; provided, however, that (i) the execution and delivery of this
Security Agreement shall not effect a novation of the Existing Security Agreement but shall be, to
the fullest extent applicable, in modification, renewal, confirmation and extension of the Existing
Security Agreement, and (ii) the Liens, security interests and other interests in the collateral as
described in the Existing Security Agreement (the “Original Collateral”) granted under the
Existing Security Agreement are and shall remain legal, valid, binding and enforceable with regard
to such Original Collateral. Each Grantor party to the Existing Security Agreement hereby
acknowledges and confirms the continuing existence and effectiveness of such Liens, security
interests and other interests in the Original Collateral granted under the Existing Security
Agreement, and further agrees that the execution and delivery of this Security Agreement and the
other Credit Documents shall not in any way release, diminish, impair, reduce or otherwise affect
such Liens, security interests and other interests in the Original Collateral granted under the
Existing Security Agreement.

     (l) Entire Agreement. THIS SECURITY AGREEMENT AND THE OTHER CREDIT DOCUMENTS, AS
DEFINED IN THE CREDIT AGREEMENT REPRESENT THE FINAL AGREEMENT AMONG 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 AMONG THE PARTIES HERETO.

[SIGNATURE PAGES FOLLOW]

17

 

     The parties hereto have caused this Security Agreement to be duly executed as of the date
first above written.

	 	 	 	 	 
	GRANTORS:              	HOLLY ENERGY PARTNERS — OPERATING, L.P.,

a Delaware limited partnership

 	 
	 	By:  	HEP  Logistics GP, L.L.C., a Delaware limited 
liability company, its General Partner 	 
	 	 	 
	 	By:  	                                          Holly  Energy Partners, L.P., a Delaware limited
 partnership, its Managing Member 	 
	 	 	 
	 	By:  	HEP Logistics Holdings, L.P., a Delaware limited 
partnership, its General Partner 	 
	 	 	 
	 	By:  	Holly Logistic Services, L.L.C., a Delaware limited 
liability company, its General Partner 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Stephen D. Wise 	 
	 	 	Treasurer 	 
	 

[Signature pages continue.]

Signature page to Amended and Restated Security Agreement 

 

	 	 	 	 	 
	 	HEP PIPELINE GP, L.L.C., a Delaware limited
liability company

HEP REFINING GP, L.L.C., a Delaware limited
liability company

HEP MOUNTAIN HOME, L.L.C., a Delaware
limited liability company

HEP PIPELINE, L.L.C., a Delaware limited
liability company

HEP REFINING, L.L.C., a Delaware limited
liability company

HEP WOODS CROSS, L.L.C., a Delaware limited liability company

 	 
	 	Each by:  	
Holly Energy Partners — Operating, L.P., a Delaware limited partnership and its Sole Member
 	 
	 
	 	 	 
	 	By:  	HEP Logistics GP, L.L.C., a Delaware limited 
liability company, its General Partner 	 
	 	 	 
	 	By:  	Holly Energy Partners, L.P., a Delaware limited
partnership, its Managing Member 	 
	 	 	 
	 	By:  	HEP Logistics Holdings, L.P., a Delaware limited
partnership, its General Partner 	 
	 	 	 
	 	By:  	Holly Logistic Services, L.L.C., a Delaware limited
liability company, its General Partner 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Stephen D. Wise 	 
	 	 	Treasurer 	 
	 

[Signature pages continue.]

Signature page to Amended and Restated Security Agreement 

 

	 	 	 	 	 
	 	HEP NAVAJO SOUTHERN, L.P., a Delaware limited
partnership

HEP PIPELINE ASSETS, LIMITED PARTNERSHIP,
a Delaware limited partnership

HEP FIN-TEX/TRUST-RIVER, L.P., a Texas limited
partnership

 	 
	 	Each by:  	HEP Pipeline GP, L.L.C., a Delaware limited liability
company and its General Partner 	 
	 	 	 
	 	By:  	Holly Energy Partners — Operating, L.P., a
 	 
	 	 	Delaware limited partnership and its Sole 	 
	 	 	Member 	 
	 	 	 
	 	By:  	HEP Logistics GP, L.L.C., a Delaware 
limited liability company, its General Partner 	 
	 	 	 	 
	 	 	 
	 	By:  	Holly Energy Partners, L.P., a Delaware
 	 
	 	 	limited partnership, its Managing Member 	 
	 	 	 	 
	 	 	 
	 	By:  	HEP Logistics Holdings, L.P., a Delaware
 	 
	 	 	limited partnership, its General Partner 	 
	 	 	 	 
	 	 	 
	 	By:  	Holly Logistic Services, L.L.C., a Delaware
 	 
	 	 	limited liability company, its General Partner 	 
	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Stephen D. Wise 	 
	 	 	Treasurer 	 
	 

[Signature pages continue.]

Signature page to Amended and Restated Security Agreement 

 

	 	 	 	 	 
	 	HEP REFINING ASSETS, L.P., a Delaware limited
partnership

 	 
	 	By:  	HEP Refining GP, L.L.C., a Delaware limited
 liability company and its General Partner 	 
	 	 	 
	 	By:  	Holly Energy Partners — Operating, L.P., a 
Delaware limited partnership and its Sole Member 	 
	 	 	 
	 	By:  	HEP Logistics GP, L.L.C., a Delaware limited 
liability company, its General Partner 	 
	 	 	 
	 	By:  	Holly Energy Partners, L.P., a Delaware limited 	 
	 	 	partnership, its Managing Member 	 
	 	 	 
	 	By:  	HEP Logistics Holdings, L.P., a Delaware limited 	 
	 	 	partnership, its General Partner 	 
	 	 	 
	 	By:  	Holly Logistic Services, L.L.C., a Delaware limited 	 
	 	 	liability company, its General Partner 	 
	 	 	 
	 	By:  	
 	 
	 	 	Stephen D. Wise 	 
	 	 	Treasurer 	 
	 

[Signature pages continue.]

Signature page to Amended and Restated Security Agreement 

 

	 	 	 	 	 
	 	HOLLY ENERGY FINANCE
CORP., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Matthew P. Clifton 	 
	 	 	President and Chief Executive Officer 	 
	 

[Signature pages continue.]

Signature page to Amended and Restated Security Agreement 

 

	 	 	 	 	 
	 	HEP LOGISTICS GP, L.L.C., a Delaware limited
liability company

 	 
	 	By:  	Holly Energy Partners, L.P., a Delaware limited 	 
	 	 	partnership, its Managing Member 	 
	 	 	 
	 	By:  	HEP Logistics Holdings, L.P., a Delaware limited 	 
	 	 	partnership, its General Partner 	 
	 	 	 
	 	By:  	Holly Logistic Services, L.L.C., a Delaware limited 	 
	 	 	liability company, its General Partner 	 
	 	 	 
	 	By:  	
 	 
	 	 	Stephen D. Wise 	 
	 	 	Treasurer 	 
	 

[Signature pages continue.]

Signature page to Amended and Restated Security Agreement 

 

	 	 	 	 	 
	 	HOLLY ENERGY PARTNERS, L.P., a Delaware

limited partnership

 	 
	 	By:  	HEP Logistics Holdings, L.P., a Delaware limited 	 
	 	 	partnership, its General Partner 	 
	 	 	 
	 	By:  	Holly Logistic Services, L.L.C., a Delaware limited 	 
	 	 	liability company, its General Partner 	 
	 	 	 
	 	By:  	
 	 
	 	 	Stephen D. Wise 	 
	 	 	Treasurer 	 
	 

[Signature pages continue.]

Signature page to Amended and Restated Security Agreement 

 

	 	 	 	 	 
	SECURED PARTY: 	UNION BANK OF CALIFORNIA, N.A., as

Secured Party for the ratable benefit of the

Beneficiaries

 	 
	 	By:  	 	 
	 	 	Sean Murphy 	 
	 	 	Vice President 	 

Signature page to Amended and Restated Security Agreement 

 

	 	 	 	 	 

SCHEDULE 1

to Security Agreement

	 	 	 	 	 
	Grantor:

	 	Holly Energy Partners — Operating, L.P.

	 
	 	 	 	 
	Jurisdiction of Formation / Filing:

	 	Delaware

	 
	 	 	 	 
	Type of Organization:

	 	limited partnership

	 
	 	 	 	 
	Organizational Number:

	 	3743527
	 
	 	 	 	 
	Federal Tax Identification Number:

	 	51-0504696
	 
	 	 	 	 
	Prior Names:

	 	HEP Operating Company, L.P.

	 
	 	 	 	 
	Grantor:

	 	HEP Pipeline GP, L.L.C.

	 
	 	 	 	 
	Jurisdiction of Formation / Filing:

	 	Delaware

	 
	 	 	 	 
	Type of Organization:

	 	limited liability company

	 
	 	 	 	 
	Organizational Number:

	 	3814279
	 
	 	 	 	 
	Federal Tax Identification Number:

	 	72-1583767
	 
	 	 	 	 
	Prior Names:

	 	None

	 
	 	 	 	 
	Grantor:

	 	HEP Refining GP, L.L.C.

	 
	 	 	 	 
	Jurisdiction of Formation / Filing:

	 	Delaware

	 
	 	 	 	 
	Type of Organization:

	 	limited liability company

	 
	 	 	 	 
	Organizational Number:

	 	3814280
	 
	 	 	 	 
	Federal Tax Identification Number:

	 	71-0968297
	 
	 	 	 	 
	Prior Names:

	 	None

Schedule 1 to Amended and Restated Security Agreement
Page 1

 

	 	 	 	 	 
	Grantor:

	 	HEP Mountain Home, L.L.C.

	 
	 	 	 	 
	Jurisdiction of Formation / Filing:

	 	Delaware

	 
	 	 	 	 
	Type of Organization:

	 	limited liability company

	 
	 	 	 	 
	Organizational Number:

	 	3814277
	 
	 	 	 	 
	Federal Tax Identification Number:

	 	71-0968300
	 
	 	 	 	 
	Prior Names:

	 	None

	 
	 	 	 	 
	Grantor:

	 	HEP Pipeline, L.L.C.

	 
	 	 	 	 
	Jurisdiction of Formation / Filing:

	 	Delaware

	 
	 	 	 	 
	Type of Organization:

	 	limited liability company

	 
	 	 	 	 
	Organizational Number:

	 	3814278
	 
	 	 	 	 
	Federal Tax Identification Number:

	 	71-0968296
	 
	 	 	 	 
	Prior Names:

	 	None

	 
	 	 	 	 
	Grantor:

	 	HEP Refining, L.L.C.

	 
	 	 	 	 
	Jurisdiction of Formation / Filing:

	 	Delaware

	 
	 	 	 	 
	Type of Organization:

	 	limited liability company

	 
	 	 	 	 
	Organizational Number:

	 	3815183
	 
	 	 	 	 
	Federal Tax Identification Number:

	 	71-0968299
	 
	 	 	 	 
	Prior Names:

	 	None

Schedule 1 to Amended and Restated Security Agreement
Page 2

 

	 	 	 	 	 
	Grantor:

	 	HEP Woods Cross, L.L.C.

	 
	 	 	 	 
	Jurisdiction of Formation / Filing:

	 	Delaware

	 
	 	 	 	 
	Type of Organization:

	 	limited liability company

	 
	 	 	 	 
	Organizational Number:

	 	3814281
	 
	 	 	 	 
	Federal Tax Identification Number:

	 	72-1583768
	 
	 	 	 	 
	Prior Names:

	 	None

	 
	 	 	 	 
	Grantor:

	 	HEP Navajo Southern, L.P.

	 
	 	 	 	 
	Jurisdiction of Formation / Filing:

	 	Delaware

	 
	 	 	 	 
	Type of Organization:

	 	limited partnership

	 
	 	 	 	 
	Organizational Number:

	 	2556546
	 
	 	 	 	 
	Federal Tax Identification Number:

	 	57-1207829
	 
	 	 	 	 
	Prior Names:

	 	Navajo Southern, Inc.

	 
	 	 	 	 
	Grantor:

	 	HEP Pipeline Assets, Limited Partnership

	 
	 	 	 	 
	Jurisdiction of Formation / Filing:

	 	Delaware

	 
	 	 	 	 
	Type of Organization:

	 	limited partnership

	 
	 	 	 	 
	Organizational Number:

	 	3814282
	 
	 	 	 	 
	Federal Tax Identification Number:

	 	51-0512050
	 
	 	 	 	 
	Prior Names:

	 	None

Schedule 1 to Amended and Restated Security Agreement
Page 3

 

	 	 	 	 	 
	Grantor:

	 	HEP Refining Assets, L.P.

	 
	 	 	 	 
	Jurisdiction of Formation / Filing:

	 	Delaware

	 
	 	 	 	 
	Type of Organization:

	 	limited partnership

	 
	 	 	 	 
	Organizational Number:

	 	3814285
	 
	 	 	 	 
	Federal Tax Identification Number:

	 	51-0512052
	 
	 	 	 	 
	Prior Names:

	 	None

	 
	 	 	 	 
	Grantor:

	 	HEP Logistics GP, L.L.C.

	 
	 	 	 	 
	Jurisdiction of Formation / Filing:

	 	Delaware

	 
	 	 	 	 
	Type of Organization:

	 	limited liability company

	 
	 	 	 	 
	Organizational Number:

	 	3743533
	 
	 	 	 	 
	Federal Tax Identification Number:

	 	51-0504692
	 
	 	 	 	 
	Prior Names:

	 	None

	 
	 	 	 	 
	Grantor:

	 	Holly Energy Finance Corp.

	 
	 	 	 	 
	Jurisdiction of Formation / Filing:

	 	Delaware

	 
	 	 	 	 
	Type of Organization:

	 	corporation

	 
	 	 	 	 
	Organizational Number:

	 	3917173
	 
	 	 	 	 
	Federal Tax Identification Number:

	 	20-2263311
	 
	 	 	 	 
	Prior Names:

	 	None

Schedule 1 to Amended and Restated Security Agreement
Page 4

 

	 	 	 	 	 
	Grantor:

	 	HEP Fin-Tex/Trust-River, L.P.

	 
	 	 	 	 
	Jurisdiction of Formation / Filing:

	 	Texas

	 
	 	 	 	 
	Type of Organization:

	 	limited partnership

	 
	 	 	 	 
	Organizational Number:

	 	800459650
	 
	 	 	 	 
	Federal Tax Identification Number:

	 	20-2161011
	 
	 	 	 	 
	Prior Names:

	 	Alon Pipeline Assets, L.L.C.

	 
	 	 	 	 
	Grantor:

	 	Holly Energy Partners, L.P.

	 
	 	 	 	 
	Jurisdiction of Formation / Filing:

	 	Delaware

	 
	 	 	 	 
	Type of Organization:

	 	limited partnership

	 
	 	 	 	 
	Organizational Number:

	 	3743531
	 
	 	 	 	 
	Federal Tax Identification Number:

	 	20-0833098
	 
	 	 	 	 
	Prior Names:

	 	None

Schedule 1 to Amended and Restated Security Agreement
Page 5

 

Annex 1 to the

Amended and Restated

Security Agreement

     SUPPLEMENT NO. [          ]
dated as of [               ] (the “Supplement”), to
the Amended and Restated Security Agreement dated as of August 27, 2007 (as amended, supplemented
or otherwise modified from time to time, the “Security Agreement”), among HOLLY ENERGY
PARTNERS — OPERATING, L.P., a Delaware limited partnership (“Borrower”), each subsidiary of
Borrower signatory thereto (together with the Borrower, the “Grantors” and individually, a
“Grantor”) and UNION BANK OF CALIFORNIA, N.A., a national association, as Administrative
Agent (“Secured Party”) for the ratable benefit of itself, the Banks (as defined below),
the Issuing Banks (as defined below), and the Swap Counterparties (as defined in the Security
Agreement) (together with the Administrative Agent, the Issuing Banks, and the Banks, individually
a “Beneficiary”, and collectively, the “Beneficiaries”).

     A. Reference is made to that certain Amended and Restated Credit Agreement dated as of August
27, 2007 by and among the Borrower, the lenders party thereto from time to time (individually, a
“Bank” and collectively, the “Banks”), the Banks issuing letters of credit
thereunder from time to time (individually, an “Issuing Bank” and collectively, the
“Issuing Banks”), and Secured Party (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”).

     B. Capitalized terms used herein and not otherwise defined herein shall have the meanings
assigned to such terms in the Security Agreement and/or the Credit Agreement.

     C. The Grantors have entered into the Security Agreement in order to induce the Banks to make
Advances and the Issuing Banks to issue Letters of Credit. Pursuant to Section 5.10 of the Credit
Agreement, each Subsidiary (other than a Restricted Subsidiary) of the Borrower that was not in
existence on the date of the Credit Agreement is required to enter into the Security Agreement as a
Grantor upon becoming a Subsidiary. Section 18(j) of the Security Agreement provides that
additional Subsidiaries of the Borrower may become Grantors under the Security Agreement by
execution and delivery of an instrument in the form of this Supplement. The undersigned Subsidiary
of the Borrower (the “New Grantor”) is executing this Supplement in accordance with the
requirements of the Credit Agreement to become a Grantor under the Security Agreement in order to
induce the Banks to make additional Advances and the Issuing Banks to issue additional Letters of
Credit and as consideration for Advances previously made and Letters of Credit previously issued.

     Accordingly, the Secured Party and the New Grantor agree as follows:

     SECTION 1. In accordance with Section 18(j) of the Security Agreement, the New Grantor by its
signature below becomes a Grantor under the Security Agreement with the same force and effect as if
originally named therein as a Grantor and the New Grantor hereby agrees (a) to all the terms and
provisions of the Security Agreement applicable to it as a Grantor thereunder and (b) represents
and warrants that the representations and warranties made by it as a Grantor thereunder are true
and correct on and as of the date hereof in all material respects. In furtherance of the
foregoing, the New Grantor, as security for the payment and performance in

Annex 1 to Amended and Restated Security Agreement
Page 1

 

full of the Secured Obligations (as defined in the Security Agreement), does hereby create and
grant to the Secured Party, its successors and assigns, for the benefit of the Beneficiaries, their
successors and assigns, a continuing security interest in and lien on all of the New Grantor’s
right, title and interest in and to the Collateral (as defined in the Security Agreement) of the
New Grantor. Each reference to a “Grantor” in the Security Agreement shall be deemed to include
the New Grantor. The Security Agreement is hereby incorporated herein by reference.

     SECTION 2. The New Grantor represents and warrants to the Secured Party and the other
Beneficiaries that this Supplement has been duly authorized, executed and delivered by it and
constitutes its legal, valid and binding obligation, enforceable against it in accordance with its
terms (subject to applicable bankruptcy, reorganization, insolvency, moratorium or similar laws
affecting creditors’ rights generally and subject, as to enforceability, to equitable principles of
general application (regardless of whether enforcement is sought in a proceeding in equity or at
law)).

     SECTION 3. This Supplement may be executed in counterparts, each of which shall constitute an
original, but all of which when taken together shall constitute a single contract. This Supplement
shall become effective when the Secured Party shall have received counterparts of this Supplement
that, when taken together, bear the signatures of the New Grantor and the Secured Party. Delivery
of an executed signature page to this Supplement by facsimile transmission shall be as effective as
delivery of a manually signed counterpart of this Supplement.

     SECTION 4. The New Grantor hereby represents and warrants that set forth on Schedule 1
attached hereto are (a) its sole jurisdiction of formation and type of organization, (b) its
federal tax identification number and the organizational number, and (c) all names used by it
during the last five years prior to the date of this Supplement.

     SECTION 5. Except as expressly supplemented hereby, the Security Agreement shall remain in
full force and effect.

     SECTION 6. THIS SUPPLEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF TEXAS, EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF THE
SECURITY INTERESTS HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR PLEDGED
COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF TEXAS.

     SECTION 7. In case any one or more of the provisions contained in this Supplement should be
held invalid, illegal or unenforceable in any respect, neither party hereto shall be required to
comply with such provision for so long as such provision is held to be invalid, illegal or
unenforceable, but the validity, legality and enforceability of the remaining provisions contained
herein and in the Security Agreement shall not in any way be affected or impaired. The parties
hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as possible to that of
the invalid, illegal or unenforceable provisions.

Annex 1 to Amended and Restated Security Agreement
Page 2

 

     SECTION 8. All communications and notices hereunder shall be in writing and given as provided
in the Security Agreement. All communications and notices hereunder to the New Grantor shall be
given to it at the address set forth under its signature hereto.

     SECTION 9. The New Grantor agrees to reimburse the Secured Party for its reasonable
out-of-pocket expenses in connection with this Supplement, including the reasonable fees, other
charges and disbursements of counsel for the Secured Party.

     THIS SUPPLEMENT, THE SECURITY AGREEMENT AND THE OTHER CREDIT DOCUMENTS, AS DEFINED IN THE
CREDIT AGREEMENT REFERRED TO IN THIS SUPPLEMENT, REPRESENT THE FINAL AGREEMENT AMONG 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 AMONG THE PARTIES HERETO.

     IN WITNESS WHEREOF, the New Grantor and the Secured Party have duly executed this Supplement
to the Security Agreement as of the day and year first above written.

	 	 	 	 	 
	 	[Name of New Grantor],

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	Address:  	 	 
	 	 	 	 	 
	 
	 
	 	UNION BANK OF CALIFORNIA, N.A., as
 Secured Party
for the ratable benefit of the 
Beneficiaries

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Annex 1 to Amended and Restated Security Agreement
Page 3

 

	 	 	 	 	 

Schedule 1

Supplement No. ____ to

the Amended and Restated

Security Agreement

	 	 	 	 	 
	New Grantor:

	 	[GRANTOR]
	 
	 	 
	Jurisdiction of Formation / Filing:

	 	[STATE]
	 
	 	 
	Type of Organization:

	 	[ENTITY TYPE]
	 
	 	 
	Organizational Number:
	 	 	 	 
	 
	 	 
	Federal Tax Identification Number:
	 	 	 	 
	 
	 	 
	Prior Names:
	 	 	 	 

Annex 1 to Amended and Restated Security Agreement
Page 4exv10w15

Exhibit 10.15

EXHIBIT E

FORM OF MORTGAGE

MORTGAGE, DEED OF TRUST, SECURITY AGREEMENT, ASSIGNMENT OF 

RENTS AND LEASES, FIXTURE FILING AND FINANCING STATEMENT

THIS INSTRUMENT GRANTS A SECURITY INTEREST BY A TRANSMITTING UTILITY.

THIS INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY AND FUTURE ADVANCE PROVISIONS.

THIS INSTRUMENT IS TO BE FILED FOR RECORD, AMONG OTHER PLACES, IN THE REAL ESTATE RECORDS. THIS
INSTRUMENT AND THE LIENS CREATED PURSUANT HERETO COVER, AMONG OTHER THINGS, PRODUCTS AND PROCEEDS.
THIS INSTRUMENT ALSO COVERS FIXTURES IN WHICH MORTGAGOR OWNS AN INTEREST. THIS INSTRUMENT CONTAINS
AN ASSIGNMENT OF RENTS AND LEASES.

A POWER OF SALE HAS BEEN GRANTED IN THIS DEED OF TRUST. A POWER OF SALE MAY ALLOW MORTGAGEE TO
TAKE THE COLLATERAL ENCUMBERED BY THIS DEED OF TRUST AND SELL IT WITHOUT GOING TO COURT IN A
FORECLOSURE ACTION UPON DEFAULT BY MORTGAGOR UNDER THIS DEED OF TRUST.

FROM

[MORTGAGOR],

as Mortgagor

TO

[Sean Murphy], Trustee

for the benefit of

UNION BANK OF CALIFORNIA, N.A., as Administrative Agent

(Mortgagee and Secured Party)

                    , 20     

For purposes of filing this Deed of Trust as a financing statement, the mailing address of
Mortgagor is 100 Crescent Court, Suite 1600, Dallas, Texas 75201-6927, Attention: Steve McDonnell;
the mailing address of Mortgagee is 445 South Figueroa Street, 15th Floor, Los Angeles,
California 90071, Attention: Don Smith.

***********************************

Exhibit E - Page 1 of 33

 

ATTENTION OF RECORDING OFFICER: This instrument is a mortgage of both real and
personal property and is, among other things, a Security Agreement and Financing Statement under
the Uniform Commercial Code. This instrument creates a lien on rights in or relating to lands of
Mortgagor which are described in Exhibit A hereto.

RECORDED DOCUMENT SHOULD BE RETURNED TO:

BRACEWELL & GIULIANI LLP

South Tower Pennzoil Place

711 Louisiana Street, Suite 2300

Houston, Texas 77002

Attention: Christina R. Stegemoller

 

 

MORTGAGE, DEED OF TRUST, SECURITY AGREEMENT, ASSIGNMENT OF 

RENTS AND LEASES, FIXTURE FILING AND FINANCING STATEMENT

THIS INSTRUMENT GRANTS A SECURITY INTEREST BY A TRANSMITTING
UTILITY. THIS INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY AND
FUTURE ADVANCE PROVISIONS.

     THIS MORTGAGE, DEED OF TRUST, SECURITY AGREEMENT, ASSIGNMENT OF RENTS AND LEASES, FIXTURE
FILING, AND FINANCING STATEMENT (this “Deed of Trust”) dated effective as of
_________, 20___, is executed and delivered by [MORTGAGOR] (“Mortgagor”), to [Sean
Murphy] as Trustee for the benefit of UNION BANK OF CALIFORNIA, N.A. (the “Mortgagee”) in
its capacity as the administrative agent under the Credit Agreement (as defined below) and on
behalf of the Credit Parties (as hereinafter defined). The addresses of Mortgagor and Mortgagee
appear in Section 6.12 of this Deed of Trust.

WITNESSETH:

     WHEREAS, this Deed of Trust is executed in connection with, and pursuant to the terms of, the
Amended and Restated Credit Agreement dated as of August ___, 2007 (as hereafter renewed,
extended, amended, supplemented and/or restated from time-to-time, the “Credit Agreement”)
among Holly Energy Partners — Operating, L.P., a Delaware limited partnership, as borrower
(“Borrower”), the banks party thereto from time to time (individually, a “Bank” and
collectively, the “Banks”), the Banks issuing letters of credit thereunder from time to
time (individually, an “Issuing Bank” and collectively, the “Issuing Banks”), and
Mortgagee as administrative agent for the Banks and the Issuing Banks (“Administrative
Agent”).

     WHEREAS, the Borrower is the principal financing entity for all capital requirements of
certain of its Subsidiaries. Mortgagor is a wholly-owned Subsidiary of Borrower, and Mortgagor
will derive substantial direct or indirect benefit from the transactions contemplated by the Credit
Documents.

     WHEREAS, the Borrower or any of its Subsidiaries may from time-to-time enter into one or more
Interest Rate Contracts with a Bank or an Affiliate of a Bank (each such counterparty, a “Swap
Counterparty”, and together with the Banks, the Issuing Banks, the Mortgagee, and
Administrative Agent being collectively referred to herein as the “Credit Parties”) and
Mortgagor will directly or indirectly benefit from such Interest Rate Contracts.

     WHEREAS, it is a condition to the performance obligation of Mortgagee and of the Banks under
certain of the Credit Documents that Mortgagor shall have executed and delivered this Deed of
Trust.

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration and in order to induce Mortgagee, Administrative Agent, Issuing Banks, and the Banks
to enter into the Credit Agreement and the Swap Counterparties to enter into the Interest Rate
Contracts, Mortgagor has agreed to execute and deliver this Deed of Trust and Mortgagor (a) wishes
to make this Deed of Trust in favor of the Trustee for the benefit of Mortgagee on behalf of the
Credit Parties to secure the Secured Obligations (as defined below) and (b) hereby agrees as
follows:

Exhibit E - Page 3 of 33

 

ARTICLE I

DEFINITIONS

     1.1 Defined Terms under the Credit Agreement. As used in this Deed of Trust, and in
the event such terms are not otherwise defined in this Deed of Trust, such terms shall have the
meanings assigned to such terms in the Credit Agreement.

     1.2 Certain Defined Terms. As used in this Deed of Trust, the following terms shall
have the following meanings (unless otherwise indicated, such meanings to be equally applicable to
both the singular and the plural forms of the terms defined):

     (a) “Accounts” means all accounts (as that term is defined in the UCC) and all
other rights to payment now or hereafter owned by Mortgagor, or in which Mortgagor holds or
acquires any other right, title or interest, whether or not earned by Mortgagor by
performance.

     (b) “Books, Records, and Data” means all of the following, whether written or
in electronically reproducible form, to the extent any of the following is used in
connection with or associated with the ownership and/or operation of the Refined Products
Pipeline Systems or the Refined Products Terminals: all documents; instruments; papers;
books; records; books of account; files and data, including engineering, operating, and
other technical data, summaries, reports, drawings, and maps; certificates; financial
statements; ledgers; minute books; and environmental studies and plans.

     (c) “Contracts” means all contracts and agreements now in effect, or hereafter
entered into by Mortgagor, Mortgagor’s predecessors in interest, or by any other parties to
the extent that Mortgagor has any right or interest thereto or thereunder for the sale,
purchase, marketing, exchange, processing, treating, compressing, handling, storing,
transporting, transmitting or gathering of Hydrocarbons, to the extent such contracts and
agreements cover, include or relate to all or any portion of the Lands and the Systems,
including without limitation, the Omnibus Agreement, the Pipelines and Terminals Agreement
and the other contracts and agreements described on Schedule 1 attached hereto and
made a part hereof, and all exhibits, schedules and other attachments to such contracts, as
the same may be amended, supplemented or otherwise modified or replaced from time to time.

     (d) “Fixtures” means any fixture or fixtures now or hereafter owned or leased
by Mortgagor, or in which Mortgagor holds or acquires any other right, title or interest,
constituting “fixtures” under the UCC or that is considered a “fixture” pursuant to any
applicable Legal Requirement of any jurisdiction in which such property is located or
pursuant to the Legal Requirements of which the character, constitution, or classification
of such property may be determined. “Fixtures” as used in this Deed of Trust includes, but
shall not be limited to, the Fixture Operating Equipment, all pipe that comprises part of a
pipeline system owned in whole or in part by Mortgagor, and any and all additions, substitutions and replacements of any of the foregoing, wherever located, including all

Exhibit E - Page 4 of 33

 

improvements thereon and all attachments, components, parts, equipment and accessories
installed thereon or affixed thereto together with all proceeds, products, renewals,
increases, profits, substitutions, replacements, additions, and accessions of any of the
foregoing.

     (e) “Fixture Operating Equipment” means any equipment related to or used in
connection with the operation of fixtures, including, without limitation, the items
described in the first sentence of the definition of Operating Equipment (as hereinafter
defined), which as a result of being incorporated into realty or structures or improvements
located therein or thereon, with the intent that they remain there permanently, constitute
fixtures under the laws of the state in which such equipment is located.

     (f) “General Intangibles” means all general intangibles now or hereafter owned
by Mortgagor, or in which Mortgagor holds or acquires any other right, title or interest,
constituting “general intangibles” or “payment intangibles” under the UCC, including
intellectual property, trademarks, trademark applications, trademark registrations, trade
names, fictitious business names, business names, company names, business identifiers,
prints, labels, trade styles and service marks (whether or not registered), trade dress,
including logos and/or designs, copyrights, patents, patent applications, or goodwill of
Mortgagor’s businesses symbolized by any of the foregoing, trade secrets, license rights,
license agreements, permits, franchises, and any rights to tax refunds to which Mortgagor is
now or hereafter may be entitled.

     (g) “Hydrocarbons” means oil, gas, coal seam gas, casinghead gas, drip
gasoline, natural gasoline, condensate, distillate, and all other liquid and gaseous
hydrocarbons produced or to be produced in conjunction therewith from a well bore and all
products, by-products, and other substances derived therefrom or the processing thereof, and
all other minerals and substances produced in conjunction with such substances, including,
but not limited to, sulfur, geothermal steam, water, carbon dioxide, helium, and any and all
minerals, ores, or substances of value and the products and proceeds therefrom.

     (h) “Lands” means the real property (including any buildings and improvements
located thereon) (i) described or referred to in the Exhibit A attached hereto or
(ii) described in any instrument or document described in Exhibit A and which
descriptions are incorporated herein by reference.

     (i) “Leases” means any and all leases or subleases means all leases or
subleases covering the Lands or the Systems or any portion thereof now or hereafter existing
or entered into.

     (j) “Mortgaged Property” means, (x) with respect to the lien created by this
Deed of Trust, all of Mortgagor’s right, title, and interest in the following, to the extent
such property is capable of being encumbered by the liens other than the security interest
granted hereunder pursuant to any applicable Legal Requirement, and (y) with respect to the
security interest granted to Mortgagee pursuant to this Deed of Trust, all of Mortgagor’s right, title, and interest in the following, to the extent such property is

Exhibit E - Page 5 of 33

 

capable of being encumbered by the security interest granted hereunder pursuant to any
applicable Legal Requirement:

(i) Accounts;

(ii) Books, Records, and Data;

(iii) Fixtures;

(iv) General Intangibles;

(v) the Lands;

(vi) Leases and Rents;

(vii) Material Contracts;

(viii) Operating Equipment;

(ix) Refined Products;

(x) the Systems;

(xi) the Servitudes;

(xii) all other real, personal, or mixed property which comprises a part of, is
necessary for, and/or is used or is held for use in connection with any of the
foregoing;

(xiii) any of the foregoing that is acquired by Mortgagor at any time after the
date of Deed of Trust and

(xiv) any Proceeds of any of the foregoing.

     (k) “Operating Equipment” means all surface or subsurface machinery, equipment,
facilities, supplies, or other tangible personal property, including oil wells, gas wells,
water wells, injection wells, gas processing plants, casing, tubing, rods, pumps, pumping
units and engines, christmas trees, derricks, separators, gun barrels, flow lines, tanks,
tank batteries, gas systems (for gathering, treating, compression, disposal or injection),
chemicals, solutions, water systems (for treating, disposal and injection), pipe, pipelines,
meters, apparatus, boilers, compressors, liquid extractors, connectors, valves, fittings,
power plants, poles, lines, cables, wires, transformers, starters and controllers, machine
shops, tools, machinery and parts, storage yards and equipment stored therein, buildings and
camps, telegraph, telephone and other communication systems, roads, loading docks, loading
racks and shipping facilities, fixtures, and other appurtenances, appliances and property of
every kind and character, movable or immovable, together with all improvements, betterments
and additions, accessions and attachments thereto and replacements thereof, in each case wherever located and to the extent any of such

Exhibit E - Page 6 of 33

 

tangible personal property is used in connection with or associated with the ownership
and/or operation of the Lands or the Systems. For the avoidance of doubt, but without
limiting the generality of the foregoing, “Operating Equipment” shall not include
any items incorporated into realty or structures or improvements located therein or thereon
in such a manner that such items no longer remain personalty under the laws of the state in
which such equipment is located.

     (l) “Organizational Documents” means (i) in the case of a corporation, its
articles or certificate of incorporation and bylaws, (ii) in the case of a general
partnership, its partnership agreement, (iii) in the case of a limited partnership, its
certificated of limited partnership and partnership agreement, (iv) in the case of a limited
liability company, its articles of organization and operating agreement or regulations, and
(v) in the case of any other entity and, to the extent any of the types of entities
previously described have other organizational and governance documents and agreements not
otherwise described in this definition, its and their organizational and governance
documents and agreements.

     (m) “Personalty Collateral” means any part of the Mortgaged Property
constituting personal property or with respect to which the UCC governs the creation,
attachment, and perfection of liens and security interests in such property, whether or not
such property is exclusively considered “personal property” pursuant to any applicable Legal
Requirement of any jurisdiction in which such property is located or pursuant to the Legal
Requirements of which the character, constitution, or classification of such property may be
determined.

     (n) “Proceeds” means “proceeds” as that term is defined in the UCC, and
includes, but is not limited to, all proceeds of any or all of the Mortgaged Property,
including without limitation (i) any and all proceeds of, and all claims for, any property
insurance, indemnity, warranty or guaranty payable from time to time with respect to any of
the Mortgaged Property, (ii) any and all payments (in any form whatsoever) made or due and
payable from time to time in connection with any requisition, confiscation, condemnation,
seizure or forfeiture of all or any part of the Mortgaged Property by any Governmental
Authority (or any person acting under color of governmental authority), (iii) all proceeds
received or receivable when any or all of the Mortgaged Property is sold, exchanged or
otherwise disposed, whether voluntarily, involuntarily, in foreclosure or otherwise, and
(iv) any and all other amounts from time to time paid or payable under or in connection with
any of the Mortgaged Property.

     (o) “Realty Collateral” means any part of the Mortgaged Property constituting
real property, whether or not such property is exclusively considered “real property”
pursuant to any applicable Legal Requirement of any jurisdiction in which such property is
located or pursuant to the Legal Requirements of which the character, constitution, or
classification of such property may be determined.

     (p) “Refined Products” means gasoline, diesel fuel, jet fuel, liquid petroleum
gases, asphalt and asphalt products, and all other products refined, separated,
fractionated, settled, and dehydrated from any Hydrocarbon or other petroleum product.

Exhibit E - Page 7 of 33

 

     (q) “Rents” means all of Mortgagor’s right, title, and interest in and to all
rents, issues, profits, revenues, royalties, income, and other benefits derived from any
leases or other transfers of any other part of the Mortgaged Property.

     (r) “Secured Obligations” means:

     (i) The “Obligations”, as that term is defined in the Credit Agreement,
including all indebtedness evidenced by the Notes;

     (ii) All other indebtedness, obligations, and liabilities of the Borrower or
any of its Subsidiaries, whether now existing or hereafter arising under or pursuant
to the Credit Agreement, this Deed of Trust, any Guaranty, any Interest Rate
Contract with a Swap Counterparty, or any of the other Credit Documents, whether
fixed or contingent, joint or several, direct or indirect, primary or secondary, and
regardless of how created or evidenced, and including without limitation, any
interest accruing during the pendency of any bankruptcy, insolvency, receivership or
other similar proceeding, regardless of whether allowed or allowable in such
proceeding;

     (iii) All sums advanced or costs or expenses incurred by Mortgagee or any of
the other Credit Parties (whether by it directly or on its behalf by the Trustee),
which are made or incurred pursuant to, or allowed by, the terms of this Deed of
Trust plus interest thereon from the date of the advance or incurrence until
reimbursement of Mortgagee or such Credit Party charged at the same rate of interest
as Reference Rate Advances are charged when an Event of Default exists as set forth
in the Credit Agreement;

     (iv) All future advances or other value, of whatever class or for whatever
purpose, at any time hereafter made or given by Mortgagee or any of the other Credit
Parties to the Borrower or any of its Subsidiaries under or pursuant to any Credit
Document or any Interest Rate Contract with a Swap Counterparty; and

     (v) All renewals, extensions, modifications, amendments, rearrangements and
substitutions of all or any part of the above whether or not Mortgagor executes any
agreement or instrument.

     (s) “Servitudes” means any and all land use agreements, permits, servitudes,
rights of way, easements, licenses, Leases and similar devices, whether now existing or
hereafter arising, for the construction, maintenance and operation of the Systems.

     (t) “Systems” shall mean all pipeline, refrigeration, processing, treating,
gathering, storage, exchange, handling, transmitting, distributing, or transporting systems,
plants, terminals and facilities now owned or hereafter acquired by Mortgagor and
located on all or any portion of the Land, including without limitation all of the
following properties whether now owned or hereafter acquired by Mortgagor: (i) the
pipelines, systems, plants, terminals and facilities described in Exhibit A, and
(ii) all of the accessories or component parts thereto, whether or not particularly
described herein,

Exhibit E - Page 8 of 33

 

including without limitation, (A) all equipment, facilities, compressors,
lengths of pipe and any and all other types of pipe actually employed in the construction of
the systems, plants, terminals and facilities, including all loops, laterals, fittings,
connections, valves, mains, meter’s, dehydrators, scrubbers, controls, tubing, casings
surrounding any piping, casing seals, casing insulators and casing vents, and all joints,
connections or flanges, rods, gauges and all compressor, tank and pump sites, pipe, piping,
pipe racks, truck racks, pumps, engines, compressors, block valves, heaters, coolers,
filters, refrigerators, dehydrators, extractors, measurement and pigging facilities, tanks,
storage tanks, loading racks, scales, markers, including caution signs, aerial markers,
navigable waterway marks, mile posts, and ground markers, and all other types of markers,
cathodic protection test stations, regulators, starters, motors, engines, housing, leaders,
orifices, skid-mounted equipment, exchangers, regenerators, reboilers, refrigeration
equipment, separators, meters, valves, block valves and generators and all other natural gas
and all surface or underground facilities, and all fences, and all pressure gauges and other
gauges, and all interconnections with other pipelines, and all side valves, blowdown valves,
mainline valves, and all test leads, (C) all materials or gas products or by-products
processing, treating, fractionating, refuting, refrigeration, gas gathering, transporting,
storing, delivering and/or marketing equipment, (D) all other items or types of equipment
and associated or component parts or supplies, including any and all machinery, tools,
blueprints, plans, furniture, furnishings, fixtures and other goods of Mortgagor, (E) all
spare parts, replacements or substitutions of any of the foregoing and all other
appurtenances of the Systems or their above-described associated or component parts, whether
as a result of repair, replacement or addition and whether attached to, incorporated with
the Systems or used in connection with the Systems whether or not the same is situated in,
on or under all or any portion of the Lands, (F) all other personal property and fixtures of
every kind and character on, incident, appurtenant or belonging to and used in connection
with the interest of Mortgagor in all or any portion of the Lands or the Systems, and (G)
all Proceeds and products of any of the foregoing.

     (u) “UCC” means, at any time, the Uniform Commercial Code in effect in the
State of Texas at that time.

     1.3 Interpretations. All meanings assigned to any defined terms used in this Deed of
Trust, unless otherwise indicated, are to be equally applicable to both the singular and plural
forms of the terms defined. Article, Section, Schedule, and Exhibit references are to Articles and
Sections of and Schedules and Exhibits to this Deed of Trust, unless otherwise specified. All
references to instruments, documents, contracts, and agreements are references to such instruments,
documents, contracts, and agreements as the same may be amended, supplemented, and otherwise
modified from time to time, unless otherwise specified. The words “hereof”, “herein” and
“hereunder” and words of similar import when used in this Deed of Trust shall refer to this Deed of
Trust as a whole and not to any particular provision of this Deed of Trust.

Exhibit E - Page 9 of 33

 

ARTICLE II

GRANTING CLAUSES; SECURED OBLIGATIONS

     2.1 Conveyance and Grant of Lien. In consideration of the advances, issuances, or
extensions by the Credit Parties to Borrower of the funds or credit constituting the Secured
Obligations (including the making of the Advances and the issuing of the Letters of Credit), and in
further consideration of the mutual covenants contained herein, Mortgagor, by this Deed of Trust
hereby GRANTS, SELLS, TRANSFERS, ASSIGNS AND CONVEYS with a general warranty of title, and WITH THE
POWER OF SALE, for the uses, purposes and conditions hereinafter set forth, all of its right, title
and interest in and to the Mortgaged Property unto Trustee, and to his successor or successors or
substitutes IN TRUST, WITH POWER OF SALE, in trust to secure the payment and performance of the
Secured Obligations for the benefit of Mortgagee and the ratable benefit of the Credit Parties.

TO HAVE AND TO HOLD the Mortgaged Property unto the Trustee and his successors or substitutes in
trust and to his and their successors and assigns forever for the benefit of the Credit Parties,
together with all and singular the rights, hereditaments and appurtenances thereto in anywise
appertaining or belonging, to secure payment of the Secured Obligations and the performance of the
covenants of Mortgagor contained in this Deed of Trust. Mortgagor does hereby bind itself, its
successors and permitted assigns, to warrant and forever defend all and singular the Mortgaged
Property unto the Trustee and his successors or substitutes in trust, and their successors and
assigns, against every person whomsoever lawfully claiming or to claim the same, or any part
thereof.

     2.2 Conveyance and Grant of Security Interest. For the same consideration and to
further secure the Secured Obligations, Mortgagor hereby grants to Mortgagee for its benefit and
the ratable benefit of the other Credit Parties a security interest in and to the Mortgaged
Property.

     2.3 Assignment of Rents and Leases. Mortgagor hereby assigns, transfers, conveys, and
sets over to Mortgagee all of Mortgagor’s estate, right, title and interest in, to and under the
Leases, whether existing on the date hereof or hereafter entered into, together with any changes,
extensions, revisions or modifications thereof and all rights, powers, privileges, options and
other benefits of Mortgagor as the lessor under the Leases regarding the current tenants and any
future tenants, and all the Rents from the Leases, including those now due, past due, or to become
due. Mortgagor irrevocably appoints Mortgagee its true and lawful attorney-in-fact, at the option
of Mortgagee, upon the occurrence and during the continuance of an Event of Default, to take
possession and control of the applicable portions of the Mortgaged Property, pursuant to
Mortgagor’s rights under the Leases, to exercise any of Mortgagor’s rights under the Leases, and to
demand, receive and enforce payment, to give receipts, releases and satisfaction and to sue, in the
name of Mortgagor or Mortgagee, for all of the Rents. The power of attorney granted hereby shall
be irrevocable and coupled with an interest and shall terminate only upon the indefeasible payment
in full in cash of the Secured Obligations (including all Letter of Credit Obligations), the
termination or expiration of all Letters of Credit and all obligations of the Issuing Banks and the
Banks in respect of Letters of Credit, and the expiration or termination of all Commitments, and
Mortgagor hereby releases Mortgagee from all liability (other than as a result of the gross negligence or willful misconduct of

Exhibit E - Page 10 of 33

 

Mortgagee) whatsoever for the exercise of the foregoing power of attorney and all actions taken
pursuant thereto. The consideration received by Mortgagor to execute and deliver this assignment
and the liens and security interests created herein is legally sufficient and will provide a direct
economic benefit to Mortgagor. It is intended by Mortgagor and Mortgagee that the assignment set
forth herein constitutes an absolute assignment and not merely an assignment for additional
security. Notwithstanding the foregoing, this assignment shall not be construed to bind Mortgagee
to the performance of any of the covenants, conditions, or provisions of Mortgagor contained in the
Leases or otherwise to impose any obligation upon Mortgagee, and, so long as no Event of Default
shall have occurred and be continuing, Mortgagor shall have a license, revocable by Mortgagee, to
possess and control the Leases and collect and receive the Rents. Upon the occurrence of an Event
of Default, such license in favor of Mortgagor shall be automatically revoked. Mortgagee’s
acceptance of the assignment of the Rents under this Deed of Trust shall not be deemed to
constitute Mortgagee a “secured party in possession,” nor obligate Mortgagee to appear in or defend
any proceeding relating to the Rents, any Leases, or the Mortgaged Property, or to take any action
hereunder, expend any money, incur any expenses, or perform any obligation under any Leases.

     2.4 After-Acquired Mortgaged Property. Any and all of the Mortgaged Property which is
acquired after the date of this Deed of Trust shall, immediately and without any further
conveyance, assignment, or act on the part of Mortgagor or Mortgagee, be subject to the Liens
granted pursuant to this Deed of Trust as fully and completely as though specifically described
herein and as though such Mortgaged Property had been owned by Mortgagor on the date of this Deed
of Trust.

     2.5 Revolving Credit and Future Advances. It is contemplated and acknowledged that
the Secured Obligations may include revolving credit loans and advances from time to time, and that
this Deed of Trust shall have effect as of the date hereof to secure all Secured Obligations,
regardless of whether any amounts are advanced on the date hereof or on a later date or, whether
having been advanced, are later repaid in part or in whole and further advances made at a later
date. This Deed of Trust secures all future advances and obligations constituting Secured
Obligations.

     2.6 Security for Secured Obligations. The Liens and other rights granted pursuant to
Section 2.1 and Section 2.2 of this Deed of Trust secure, and the Mortgaged Property is security
for, the prompt performance and payment in full in cash when due, whether at stated maturity, by
acceleration or otherwise, of the Secured Obligations. Notwithstanding that the balance of the
Secured Obligations may at certain times be zero and that no Secured Obligations may at certain
times be outstanding, the Liens granted hereunder and this Deed of Trust shall remain in full force
and effect at all times and with the same priority until the payment in full in cash of the Secured
Obligations and the expiration or termination of the Credit Documents.

     2.7 Products and Proceeds. The Liens and security interests granted by
Mortgagor under this Deed of Trust include all products and Proceeds of the Mortgaged
Property.

Exhibit E - Page 11 of 33

 

ARTICLE III

REPRESENTATIONS, WARRANTIES, AND COVENANTS

     3.1 Representations and Warranties. Subject to the provisions of the Credit Agreement
and any express exceptions contained therein, Mortgagor represents and warrants as follows:

     (a) Mortgagor is duly organized, validly existing, and in good standing under the laws
of the jurisdiction of its organization and in good standing and qualified to do business in
each jurisdiction where its ownership or lease of property or conduct of its business
requires such qualification and where a failure to be qualified could reasonably be expected
to cause a Material Adverse Effect.

     (b) The execution, delivery, and performance by Mortgagor of this Deed of Trust and the
consummation of the transactions contemplated hereby (a) are within Mortgagor’s powers, (b)
have been duly authorized by all necessary action, (c) do not contravene (i) Mortgagor’s
Organizational Documents or (ii) any applicable Legal Requirement or Contract binding on or
affecting Mortgagor or its property, and (d) will not result in or require the creation or
imposition of any Lien prohibited by the Credit Documents.

     (c) No authorization or approval or other action by, and no notice to or filing with,
any Governmental Authority is required for (i) the due execution, delivery and performance
by Mortgagor of this Deed of Trust or (ii) the consummation of the transactions contemplated
thereby.

     (d) This Deed of Trust has been duly executed and delivered by Mortgagor. This Deed of
Trust to which Mortgagor is a party is the legal, valid, and binding obligation of Mortgagor
and is enforceable against Mortgagor in accordance with its terms, except as such
enforceability may be limited by any applicable bankruptcy, insolvency, reorganization,
moratorium, or similar law affecting creditors’ rights generally.

     (e) Mortgagor has good, valid and marketable title to the Mortgaged Property free from
all Liens, security interests or other encumbrances other than the Permitted Liens. Other
than the Permitted Liens and other than those for which waivers or consents have been
obtained and delivered to the Mortgagee on or prior to the date hereof, there are no
preferential purchase rights held by third parties affecting any part of the Mortgaged
Property or rights of third parties to prohibit the assignment, conveyance, pledge, or
mortgage of any part of the Mortgaged Property without the consent of such third parties.

     (f) The Land, Servitudes and other interests and rights in real property described in
Exhibit A constitute all of the Lands and Servitudes necessary for the construction,
ownership, maintenance, access to and operation of the Systems affected by this Deed of Trust and the description in Exhibit A hereto includes a complete
and accurate description of all such properties, rights, and interests in real property.

Exhibit E - Page 12 of 33

 

     (g) All of the Contracts affecting any interest in the Lands or the rest of the
Mortgaged Property are valid, subsisting and in full force and effect, and Mortgagor has no
knowledge that a default exists under any of the terms or provisions, express or implied, of
any of such Contracts. All of the Contracts and obligations of Mortgagor that relate to the
Lands constitute legal, valid and binding obligations of Mortgagor. Neither Mortgagor nor,
to the knowledge of Mortgagor, any other party to any such Contract (i) is in breach of or
default, or with the lapse of time or the giving of notice, or both, would be in breach or
default, with respect to any obligations under any such Contract, whether express or
implied, or (ii) has given or threatened to give notice of any default under or inquiry into
any possible default under, or action to alter, terminate, rescind or procure a judicial
reformation of, any such Contract.

     (h) All rentals and other payments due under or with respect to the Lands have been
properly and timely paid. All taxes due and payable have been properly and timely paid
except for such taxes being contested in good faith by appropriate proceedings, and for
which reserves shall have been made therefore and except for such taxes as are being
currently paid prior to delinquency in the ordinary course of business. All expenses due
and payable under the terms of the Contracts have been properly and timely paid except for
such expenses being contested in good faith by appropriate proceedings, and for which
reserves shall have been made therefor and except for such expenses as are being currently
paid prior to delinquency in the ordinary course of business.

     (i) Mortgagor shall, at all times, comply in all material respects with all
Environmental Law.

     (j) To the knowledge of Mortgagor, except in compliance with all Environmental Law and
in the ordinary course of Mortgagor’s business, the Mortgaged Property has never been used
by Mortgagor or any prior owner of the Mortgaged Property as a dump site or storage (whether
temporary or permanent) site for Hazardous Substance.

     (k) Mortgagor has filed with the appropriate state and federal agencies all necessary
rate and collection filings and all necessary applications for well determinations under the
Natural Gas Act of 1938, as amended, the Natural Gas Policy Act of 1978, as amended, and the
rules and regulations of the Federal Energy Regulatory Commission (the “FERC”) thereunder,
and each such application has been approved by or is pending before the appropriate state or
federal agency.

     (l) All necessary regulatory filings have been properly made in connection with the
operation of Mortgagor’s business related to the Mortgaged Property except where a failure
to make such filing could reasonably be expected to cause a Material Adverse Effect.

Exhibit E - Page 13 of 33

 

     (m) ADDRESS AND IDENTIFICATION INFORMATION.

     (i) As of the date of this Mortgage, Mortgagor’s address, place of business,
residence, chief executive office and office where Mortgagor keeps its records
concerning Accounts, Contract Rights and General Intangibles is set forth in the
Section 6.12, and there has been no change in the location of any Mortgagor’s place
of business, residence, chief executive office and office where it keeps such
records and no change of Mortgagor’s name during the four months immediately
preceding the date of this Deed of Trust.

     (ii) Mortgagor’s (x) federal tax identification number is ____________ and
organizational number is ____________, (y) state of formation or organization, as
applicable is Delaware, and (z) correctly-spelled name is _________.

     (iii) Mortgagee’s address is set forth in Section 6.12 hereto.

     (iv) Trustee’s address is set forth in Section 6.12 hereto.

     3.2 Covenants. Subject to the provisions of the Credit Agreement and any express
exceptions contained therein, Mortgagor agrees as follows:

     (a) Payment of Lienable Claims. Mortgagor shall make prompt payment when due
and owing of all taxes, assessments, and governmental charges imposed on or assessed against
this instrument, upon the interest of Mortgagee or the Trustee, upon the Mortgaged Property
or any part thereof, or upon the revenues, income, or profits from any of the above, except
for such amounts as are being contested in good faith by appropriate proceedings and for
which adequate reserves shall have been established . Mortgagor shall make prompt payment
when due and owing of all lawful claims and demands of mechanics, materialmen, laborers, and
others which, if unpaid, might result in, or permit the creation of, a lien on the Mortgaged
Property or any part thereof, and in general will do or cause to be done everything
necessary so that the lien hereof shall be fully preserved, except for such amounts as are
being contested in good faith by appropriate proceedings and for which adequate reserves
shall have been established.

     (b) Operation of Mortgaged Property. Mortgagor shall operate the Mortgaged
Property, continuously and in a good workmanlike manner in accordance with all Legal
Requirements and comply in all material respects with all terms and conditions of the
Servitudes it now holds and each assignment or Contract obligating Mortgagor in any way with
respect to the Mortgaged Property; but nothing herein shall be construed to empower
Mortgagor to bind the Trustee or Mortgagee or any other Credit Party to any contract or
obligation or render the Trustee or Mortgagee or any other Credit Party in any way
responsible or liable for bills or obligations incurred by Mortgagor.

     (c) Maintenance of Easements. Mortgagor shall keep and continue, or cause to
be kept and continued, all material Servitudes, estates and interests herein described and
all contracts and agreements relating thereto in full force and effect in accordance with
the terms thereof and will not permit the same to lapse or otherwise become impaired for
failure to comply with the obligations thereof, whether express or implied.

Exhibit E - Page 14 of 33

 

Without limiting the generality of the foregoing sentence, Mortgagor shall not release
any of the Servitudes without the prior written consent of Mortgagee.

     (d) Other Encumbrances. Mortgagor shall not create, assume, incur or suffer to
exist, or permit any of its Subsidiaries to create, assume, incur or suffer to exist, any
Lien on or in respect of any of the Mortgaged Property, whether now owned or hereafter
acquired, or assign or otherwise convey, or permit any such Subsidiary to assign or
otherwise convey, any right to receive income, in each case to secure or provide for the
payment of any Debt, trade payable or other obligation or liability of any Person; provided,
however, that notwithstanding the foregoing, Mortgagor or any of its Subsidiaries may
create, incur, assume or suffer to exist the Permitted Liens.

     (e) Environmental Conditions. If at any time any Hazardous Substance is
discovered on, under, or about any of the Realty Collateral or any other real property owned
or operated by Mortgagor (“Other Property”) in violation of any Environmental Law in
any material respect, Mortgagor will inform Administrative Agent of the same and of
Mortgagor’s proposed response as required under Environmental Law, including, without
limitation, the performance of any required investigatory or remedial activity, and
Mortgagor will, at its sole cost and expense, remedy or remove such Hazardous Substances
from such real property or Other Property or the groundwater underlying such real property
or Other Property in accordance with (a) the approval of the appropriate Governmental
Authority, if any such approval is required under Environmental Laws, and (b) all
Environmental Laws. In addition to all other rights and remedies of Administrative Agent
and the Credit Parties under the Credit Documents, but subject to Mortgagor’s right to
contest the performance of any such response, as further described in this Section, if such
Hazardous Substances require remediation or removal as set forth in this Section but has not
been remedied or removed from the affected Mortgaged Property or Other Property or the
groundwater underlying such Mortgaged Property or Other Property by the Borrower within the
time periods contemplated by the applicable response, Administrative Agent may, at its sole
discretion and after giving Mortgagor written notification of its intention to
self-implement any required response, pay to have the same remedied or removed in accordance
with the applicable remediation program, and Mortgagor will reimburse Administrative Agent
therefore within ten days of Administrative Agent’s demand for payment. Mortgagor shall
have the right to contest any notice, directive or other demand of any third party,
including without limitation, any Governmental Authority, to remedy or remove Hazardous
Substances from any Mortgaged Property or any Other Property so long as Mortgagor diligently
prosecutes such contest to completion, complies with any final order or determination and,
before such contest, either furnishes Administrative Agent security in an amount equal to
the cost of remediation or removal of the Hazardous Substances or posts a bond with a surety
satisfactory to Administrative Agent in such amount. MORTGAGOR SHALL BE SOLELY RESPONSIBLE
FOR, AND WILL INDEMNIFY AND HOLD HARMLESS ADMINISTRATIVE AGENT AND EACH OTHER CREDIT PARTY
AND EACH OF THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, SUCCESSORS AND ASSIGNS
FROM AND AGAINST, ANY AND ALL LOSSES, DAMAGES, DEMANDS, CLAIMS, CAUSES OF ACTION, JUDGMENTS,
ACTIONS, ASSESSMENTS, PENALTIES, COSTS, EXPENSES

Exhibit E - Page 15 of 33

 

AND LIABILITIES DIRECTLY OR INDIRECTLY ARISING OUT OF OR ATTRIBUTABLE TO ANY HAZARDOUS
SUBSTANCES AT ANY REALTY COLLATERAL OR ANY OTHER PROPERTY, INCLUDING, WITHOUT LIMITATION,
THE FOLLOWING: (Y) THE COSTS OF ANY REPAIR, CLEANUP OR DETOXIFICATION OF ANY MORTGAGED
PROPERTY OR OTHER PROPERTY REQUIRED UNDER ENVIRONMENTAL LAW, AND THE PREPARATION AND
IMPLEMENTATION OF ANY CLOSURE, REMEDIAL OR OTHER PLANS REQUIRED UNDER ENVIRONMENTAL LAW; AND
(Z) ALL REASONABLE COSTS AND EXPENSES INCURRED BY ADMINISTRATIVE AGENT OR ANY OTHER CREDIT
PARTY IN CONNECTION WITH CLAUSE (Y) ABOVE, INCLUDING REASONABLE ATTORNEYS’ FEES;
PROVIDED, HOWEVER, THAT MORTGAGOR SHALL NOT BE LIABLE FOR ANY OF THE
FOREGOING THAT IS FOUND IN A FINAL, NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT
JURISDICTION TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF
ADMINISTRATIVE AGENT OR A CREDIT PARTY AFTER TAKING POSSESSION OF THE MORTGAGED PROPERTY.
The covenants and indemnities provided in this section shall survive the repayment or any
other satisfaction of the Secured Obligations.

     (f) Notification. Mortgagor will notify Mortgagee of any material destruction,
loss, termination or acquisition of any of its Mortgaged Property within three Business Days
thereof.

     3.3 Further Assurances; Defense of Claims. Subject to the provisions of the Credit
Agreement and any express exceptions contained therein, Mortgagor further agrees as follows:

     (a) Promptly upon request and at its expense, Mortgagor shall cure any defects in the
creation, execution and delivery of this Deed of Trust. Mortgagor hereby authorizes the
Mortgagee to file any financing statements without the signature of Mortgagor to the extent
permitted by applicable law in order to perfect or maintain the perfection of any security
interest granted under this Deed of Trust. Mortgagor at its expense will promptly execute
and deliver to the Mortgagee upon reasonable request all such other documents, agreements
and instruments to comply with or accomplish the covenants and agreements of Mortgagor in
this Deed of Trust, or to further evidence and more fully describe the Mortgaged Property,
or to correct any omissions in this Deed of Trust, or to state more fully the security
obligations set out herein, or to perfect, protect or preserve any Liens created pursuant
hereto, or to make any recordings, to file any notices or obtain any consents, all as may be
necessary or appropriate in connection therewith or to enable the Mortgagee to exercise and
enforce its rights and remedies with respect to any Mortgaged Property.

     (b) Within 30 days after a request by the Mortgagee or any Credit Party to cure any
title defects or exceptions which are not Permitted Liens and which, individually or in the
aggregate, (i) materially interfere with the ordinary conduct of Business, (ii) materially
detract from the value or the use of the portion of the Mortgaged Property affected thereby,
or (iii) could reasonably be expected to have a Material Adverse Effect,

Exhibit E - Page 16 of 33

 

the Mortagor shall cure such title defects or exceptions or substitute such Mortgaged
Property with acceptable Property of an equivalent value with no title defects or exceptions
and deliver to the Mortagee satisfactory title evidence in form and substance acceptable to
the Mortagee in its reasonable business judgment as to the Mortagor’s title in such Property
and the Mortagee’s Liens and security interests therein.

     (c) Mortgagor shall promptly notify Mortgagee in writing of the commencement of any
legal proceeding affecting Mortgagor’s title to the Mortgaged Property or Mortgagee’s Lien
or security interest in the Mortgaged Property, or any part thereof and which (i) materially
interferes with the ordinary conduct of Business, (ii) materially detracts from the value or
the use of the portion of the Mortgaged Property affected thereby, or (iii) could reasonably
be expected to have a Material Adverse Effect. Mortgagor shall take such action, employing
attorneys agreeable to Mortgagee, as may be necessary to preserve Mortgagor’s, the Trustee’s
and Mortgagee’s rights affected thereby. If Mortgagor fails or refuses to adequately or
vigorously, in the reasonable judgment of Mortgagee, defend Mortgagor’s, the Trustee’s or
Mortgagee’s rights to the Mortgaged Property, the Trustee or Mortgagee may take such action
on behalf of and in the name of Mortgagor and at Mortgagor’s expense. Moreover, Mortgagee
or the Trustee on behalf of Mortgagee, may take such independent action in connection
therewith as they may in their discretion deem proper, including the right to employ
independent counsel and to intervene in any suit affecting the Mortgaged Property. All
costs, expenses and attorneys’ fees incurred by Mortgagee or the Trustee pursuant to this
Section 6.3 or in connection with the defense by Mortgagee of any claims, demands or
litigation relating to Mortgagor, the Mortgaged Property or the transactions contemplated in
this Deed of Trust shall be paid by Mortgagor as provided in Section 6.2 below.

     (d) Mortgagor shall maintain and preserve the Lien and security interest herein created
as an Acceptable Security Interest.

     (e) Mortgagor shall give Mortgagee at least thirty days’ prior written notice before it
amends, its name or changes its jurisdiction of incorporation, organization, or formation,
as applicable.

     3.4 Recording. Mortgagor shall promptly (at Mortgagor’s own expense) record,
register, deposit and file this Deed of Trust and every other instrument in addition or supplement
hereto, including applicable financing statements, in such offices and places within the state
where the Mortgaged Property is located and at such times and as often as may be necessary to
preserve, protect and renew the Lien and security interest herein created as an Acceptable Security
Interest on real or personal property as the case may be, and otherwise shall do and perform all
matters or things necessary or expedient to be done or observed by reason of any Legal Requirement
for the purpose of effectively creating, perfecting, maintaining and preserving the Lien and
security interest created hereby in and on the Mortgaged Property.

     3.5 Records, Statements and Reports. Mortgagor shall keep proper books of record and
account in which complete and correct entries shall be made of Mortgagor’s transactions in
accordance with the method of accounting required in the Credit Agreement and shall furnish or

Exhibit E - Page 17 of 33

 

cause to be furnished to Mortgagee the reports required to be delivered pursuant to the terms
of the Credit Agreement.

     3.6 Covenants Running with the Land. All covenants and agreements herein contained
shall constitute covenants running with the Land.

     3.7 Incorporation of Covenants from Credit Agreement. The covenants applicable to
Mortgagor and to the Mortgaged Property contained in Article V and Article VI of the Credit
Agreement are hereby confirmed and restated, each such covenant, together with all related
definitions and ancillary provisions, being hereby incorporated into this Deed of Trust by
reference as though specifically set forth in this Section, and Mortgagor hereby agrees that
Mortgagor shall perform and comply with such covenants until the indefeasible payment in full in
cash of the Secured Obligations (including all Letter of Credit Obligations), the termination or
expiration of all Letters of Credit and all obligations of the Issuing Banks and the Banks in
respect of Letters of Credit, and the expiration or termination of all Commitments.

ARTICLE IV

DEFAULT

     4.1 Events of Default. An Event of Default under the terms of the Credit Agreement
shall constitute an “Event of Default” under this Deed of Trust.

     4.2 Acceleration Upon Default. Upon the occurrence and during the continuance of any
Event of Default (other than pursuant to paragraph (e) of Section 7.01 of the Credit Agreement),
Mortgagee may, or shall at the request of the Majority Banks, declare the entire unpaid principal
of, and the interest accrued on, and all other amounts owed in connection with, the Secured
Obligations to be forthwith due and payable, whereupon the same shall become immediately due and
payable without any protest, presentment, demand, notice of intent to accelerate, notice of
acceleration or further notice of any kind, all of which are hereby expressly waived by Mortgagor.
If any Event of Default pursuant to paragraph (e) of Section 7.01 of the Credit Agreement shall
occur, the entire unpaid principal of, and the interest accrued on, and all other amounts owed in
connection with, the Secured Obligations shall immediately and automatically become and be due and
payable in full, without presentment, demand, protest or any notice of any kind (including, without
limitation, any notice of intent to accelerate or notice of acceleration) all of which are hereby
expressly waived by Mortgagor. Whether or not Mortgagee or the Majority Banks elect to accelerate
as herein provided, Mortgagee may simultaneously, or thereafter, without any further notice to
Mortgagor, exercise any other right or remedy provided in this Deed of Trust or otherwise existing
under the Credit Agreement or any other Credit Document or any other agreement, document, or
instrument evidencing obligations owing from Mortgagor to any of the Credit Parties.

ARTICLE V

Mortgagee’s Rights

     5.1 Rights to Realty Collateral Upon Default.

Exhibit E - Page 18 of 33

 

     (a) Operation of Property by Mortgagee. Upon the occurrence and during the continuance
of any Event of Default, and in addition to all other rights of Mortgagee, Mortgagee shall
have the following rights and powers (but no obligation):

     (i) To hold, use, administer, manage and operate the Realty Collateral to the
extent that Mortgagor could do so, and without any liability to Mortgagor in
connection with such operations; and

     (ii) Either in person or by agent, with or without bringing any action or
proceeding, or by a receiver appointed by a court, and without regard to the
adequacy of its security, to enter upon and take possession of the Realty Collateral
or any part thereof, and exclude Mortgagor therefrom, and do any other acts which it
deems necessary or desirable to preserve the value, marketability or rentability of
the Realty Collateral, or part thereof or interest therein, increase the income
therefrom or protect the security hereof and, with or without taking possession of
the Realty Collateral, take any action described herein, sue for or otherwise
collect the Rents, including those past due and unpaid, and apply the same, less
reasonable costs and expenses of operation and collection including reasonable
attorneys’ fees, upon the Secured Obligations, all in such order as Mortgagee may
determine.

The entering upon and taking possession of the Realty Collateral, the taking of any action
described herein, the collection of such Rents, and the application thereof as aforesaid,
shall not cure or waive any Event of Default or notice of default or invalidate any act done
in response to such Event of Default or pursuant to such notice of default and,
notwithstanding the continuance in possession of the Realty Collateral or the collection,
receipt and application of Rents, Mortgagee shall be entitled to exercise every right
provided for in any of the Credit Documents or by law upon any Event of Default, including
the right to exercise the power of sale herein conferred. Mortgagee may designate any
person, firm, corporation or other entity to act on its behalf in exercising the foregoing
rights and powers.

     (b) Judicial Proceedings. Upon the occurrence and during the continuance of any Event
of Default, the Trustee and/or Mortgagee, in lieu of or in addition to exercising the power
of sale hereafter given, may proceed by a suit or suits, in equity or at law (i) for the
specific performance of any covenant or agreement herein contained or in aid of the
execution of any power herein granted, (ii) for the appointment of a receiver whether there
is then pending any foreclosure hereunder or the sale of the Realty Collateral, or (iii) for
the enforcement of any other appropriate legal or equitable remedy; and further, in lieu of
the non-judicial power of sale hereafter given for Mortgaged Property located in the State
of Texas, the Trustee may proceed by suit for a sale of the Realty Collateral.

     (c) Foreclosure by Private Power of Sale of Collateral. Upon the occurrence and during
the continuance of any Event of Default, the Trustee shall have the right and power to sell,
as the Trustee may elect, all or a portion of the Mortgaged Property at one or more sales as
an entirety or in parcels, in accordance with Section 51.002 of the Texas Property Code, as
amended from time to time (or any successor provisions of Texas

Exhibit E - Page 19 of 33

 

governing real property
foreclosure sales) or with any applicable state law. Mortgagor hereby designates as
Mortgagor’s address for the purpose of notice the address set out in Section 6.12;
provided that Mortgagor may by written notice to Mortgagee designate a different
address for notice purposes. Any purchaser or purchasers will be provided with a general
warranty conveyance binding Mortgagor and Mortgagor’s successors and assigns. Sale of a
part of the Realty Collateral will not exhaust the power of sale, and sales may be made from
time to time until all of the Realty Collateral is sold or all of the Secured Obligations
are paid in full.

     (d) Certain Aspects of Sale. Mortgagee will have the right to become the purchaser at
any foreclosure sale and to credit the then outstanding balance of the Secured Obligations
against the amount payable by Mortgagee as purchaser at such sale. Statements of fact or
other recitals contained in any conveyance to any purchaser or purchasers at any sale made
hereunder will conclusively establish the occurrence of any Event of Default, any
acceleration of the maturity of the Secured Obligations, the advertisement and conduct of
such sale in the manner provided herein, the appointment of any successor-Trustee hereunder
and the truth and accuracy of all other matters stated therein. Mortgagor does hereby
ratify and confirm all legal acts that the Trustee may do in carrying out the Trustee’s
duties and obligations under this Deed of Trust, and Mortgagor hereby irrevocably appoints
Mortgagee to be the attorney-in-fact of Mortgagor and in the name and on behalf of Mortgagor
to execute and deliver any deeds, transfers, conveyances, assignments, assurances and
notices which Mortgagor ought to execute and deliver and do and perform any and all such
acts and things which Mortgagor ought to do and perform under the covenants herein contained
and generally to use the name of Mortgagor in the exercise of all or any of the powers
hereby conferred on Trustee. Upon any sale, whether under the power of sale hereby given or
by virtue of judicial proceedings, it shall not be necessary for Trustee or any public
officer acting under execution or by order of court, to have physically present or
constructively in his possession any of the Mortgaged Property, and Mortgagor hereby agrees
to deliver to the purchaser or purchasers at such sale on the date of sale the Mortgaged
Property purchased by such purchasers at such sale and if it should be impossible or
impracticable to make actual delivery of such Mortgaged Property, then the title and right
of possession to such Mortgaged Property shall pass to the purchaser or purchasers at such
sale as completely as if the same had been actually present and delivered.

     (e) Receipt to Purchaser. Upon any sale made under the power of sale herein granted,
the receipt of the Trustee will be sufficient discharge to the purchaser or purchasers at
any sale for its purchase money, and such purchaser or purchasers, will not, after paying
such purchase money and receiving such receipt of the Trustee, be obligated to see to the
application of such purchase money or be responsible for any loss, misapplication or
non-application thereof.

     (f) Effect of Sale. Any sale or sales of the Realty Collateral will operate to divest
all right, title, interest, claim and demand whatsoever, either at law or in equity, of
Mortgagor in and to the premises and the Realty Collateral sold, and will be a perpetual
bar, both at law and in equity, against Mortgagor, Mortgagor’s successors or assigns, and
against any and all persons claiming or who shall thereafter claim all or any of the Realty

Exhibit E - Page 20 of 33

 

Collateral sold by, through or under Mortgagor, or Mortgagor’s successors or assigns.
Nevertheless, if requested by the Trustee so to do, Mortgagor shall join in the execution
and delivery of all proper conveyances, assignments and transfers of the Property so sold.
The purchaser or purchasers at the foreclosure sale will receive as incident to his, her,
its or their own ownership, immediate possession of the Realty Collateral purchased and
Mortgagor agrees that if Mortgagor retains possession of the Realty Collateral or any part
thereof subsequent to such sale, Mortgagor will be considered a tenant at sufferance of the
purchaser or purchasers and will be subject to eviction and removal by any lawful means,
with or without judicial intervention, and all damages by reason thereof are hereby
expressly waived by Mortgagor.

     (g) Application of Proceeds. The proceeds of any sale of the Realty Collateral or any
part thereof, whether under the power of sale herein granted and conferred or by virtue of
judicial proceedings, shall either be, at the option of Mortgagee, applied at the time of
receipt, or held by Mortgagee in a cash collateral account as additional Mortgaged Property,
and in either case, applied in the order set forth in Section 7.06 of the Credit Agreement.

     (h) Mortgagor’s Waiver of Appraisement and Marshalling. Mortgagor agrees, to the full
extent that Mortgagor may lawfully so agree, that Mortgagor will not at any time insist upon
or plead or in any manner whatever claim the benefit of any appraisement, valuation, stay,
extension or redemption law, now or hereafter in force, in order to prevent or hinder the
enforcement or foreclosure of this Deed of Trust, the absolute sale of the Mortgaged
Property, including the Realty Collateral, or the possession thereof by any purchaser at any
sale made pursuant to this Deed of Trust or pursuant to the decree of any court of competent
jurisdiction; and Mortgagor, for Mortgagor and all who may claim through or under Mortgagor,
hereby waives the benefit of all such laws and, to the extent that Mortgagor may lawfully do
so under any applicable law, any and all rights to have the Mortgaged Property, including
the Realty Collateral, marshaled upon any foreclosure of the Lien hereof or sold in inverse
order of alienation. Mortgagor agrees that the Trustee may sell the Mortgaged Property,
including the Realty Collateral, in part, in parcels or as an entirety as directed by
Mortgagee.

     (i) Waiver of Notices, Appraisements, Reinstatement and other Rights. Mortgagor hereby
expressly waives, to the full extent permitted by applicable law, any and all rights or
privileges of notices, appraisements, redemption and any prerequisite in the event of
foreclosure of the liens and/or security interests created herein, including without
limitation, any right to reinstatement prior to foreclosure. Mortgagee at all times shall
have the right to release any part of the Mortgaged Property now or hereafter subject to the
liens or security interests of this Deed of Trust, any part of the proceeds of production or
other income herein or hereafter assigned or pledged, or any other security it now has or
may hereafter have securing the Indebtedness, without releasing any other
part of the Mortgaged Property, proceeds or income, and without affecting the liens or
security interests hereof as to the part or parts of the Mortgaged Property, proceeds or
income not so released or the right to receive future proceeds and income

Exhibit E - Page 21 of 33

 

     5.2 Rights to Personalty Collateral Upon Default. Upon the occurrence and during the
continuance of any Event of Default, Mortgagee or the Trustee may proceed against the Personalty
Collateral in accordance with the rights and remedies granted herein with respect to the Realty
Collateral, or will have all rights and remedies granted by the Uniform Commercial Code as in
effect in Texas and this Deed of Trust. Mortgagee shall have the right to take possession of the
Personalty Collateral, and for this purpose Mortgagee may enter upon any premises on which any or
all of the Personalty Collateral is situated and, to the extent that Mortgagor could do so, take
possession of and operate the Personalty Collateral or remove it therefrom. Mortgagee may require
Mortgagor to assemble the Personalty Collateral and make it available to Mortgagee at a place to be
designated by Mortgagee which is reasonably convenient to both parties. Unless the Personalty
Collateral is perishable or threatens to decline speedily in value or is of a type customarily sold
on a recognized market, Mortgagee will send Mortgagor reasonable notice of the time and place of
any public sale or of the time after which any private sale or other disposition of the Personalty
Collateral is to be made. This requirement of sending reasonable notice will be met if such notice
is mailed, postage prepaid, to Mortgagor at the address designated in Section 6.12 hereof (or such
other address as has been designated as provided herein) at least ten days before the time of the
sale or disposition. In addition to the expenses of retaking, holding, preparing for sale, selling
and the like, Mortgagee will be entitled to recover attorney’s fees and legal expenses as provided
for in this Deed of Trust and in the writings evidencing the Secured Obligations before applying
the balance of the proceeds from the sale or other disposition toward satisfaction of the Secured
Obligations. Mortgagor will remain liable for any deficiency remaining after the sale or other
disposition. Mortgagor hereby consents and agrees that any disposition of all or a part of the
Mortgaged Property may be made without warranty of any kind whether expressed or implied.

     5.3 Rights to Fixture Collateral Upon Default. Upon the occurrence and during the
continuance of any Event of Default, Mortgagee may elect to treat the Fixture Collateral as either
Realty Collateral or as Personalty Collateral (but not both) and proceed to exercise such rights as
apply to the type of Mortgaged Property selected.

     5.4 Certain Remedies related to Rents. After the occurrence and during the
continuance of an Event of Default, the Mortgagee may by written notice to Mortgagor terminate
Mortgagor’s license to collect the Rents hereunder. Any Rents received by Mortgagor after such
notice shall be held in trust for the benefit of the Mortgagee, segregated from the other funds of
Mortgagor, and immediately paid over to the Mortgagee, with any necessary endorsement. Mortgagor
irrevocably authorizes all parties obligated to pay Rents to accept any notice from the Mortgagee
that Mortgagor’s license to collect the Rents has been terminated after the occurrence and during
the continuance of an Event of Default and, following such notice, to follow the instructions of
the Mortgagee and ignore the instructions of Mortgagor with respect to collecting the Rents,
including instructions which direct the obligors to pay all amounts due directly to the Mortgagee.
Upon such notification and at the expense of Mortgagor, the Mortgagee may enforce collection of any
Rents, and adjust, settle, or compromise the amount or payment thereof.

     5.5 Account Debtors. Mortgagee may, in its discretion, after the occurrence and
during the continuance of any Event of Default, notify any account debtor to make payments directly
to Mortgagee and contact account debtors directly to verify information furnished by Mortgagor.
Mortgagee shall not have any obligation to preserve any rights against prior parties.

Exhibit E - Page 22 of 33

 

     5.6 Costs and Expenses. All reasonable sums advanced or costs or expenses incurred by
Mortgagee (either by it directly or on its behalf by the Trustee or any receiver appointed
hereunder) in protecting and enforcing its rights hereunder shall constitute a demand obligation
owing by Mortgagor to Mortgagee as part of the Obligations. Mortgagor hereby agrees to repay such
reasonable sums on demand plus interest thereon from the date of the advance or incurrence until
reimbursement of Mortgagee at the same rate of interest as charged Reference Rate Advances when an
Event of Default exists as set forth in the Credit Agreement.

     5.7 Set-Off. Upon the occurrence and during the continuance of any Event of Default,
Mortgagee shall have the right to set-off any funds of Mortgagor in the possession of Mortgagee
against any amounts then due by Mortgagor to Mortgagee pursuant to this Deed of Trust.

ARTICLE VI

Miscellaneous

     6.1 Trustees.

     (a) Successor Trustees. The Trustee may resign in writing addressed to Mortgagee or be
removed at any time with or without cause by an instrument in writing duly executed by
Mortgagee. In case of the death, resignation or removal of the Trustee, a successor Trustee
may be appointed by Mortgagee by instrument of substitution complying with any applicable
requirements of law, and in the absence of any requirement, without other formality other
than an appointment and designation in writing. The appointment and designation will vest
in the named successor Trustee all the estate and title of the Trustee in all of the
Mortgaged Property and all of the rights, powers, privileges, immunities and duties hereby
conferred upon the Trustee. All references herein to the Trustee will be deemed to refer to
any successor Trustee from time to time acting hereunder.

     (b) Indemnification of Trustee. The Trustee shall not be liable for any error of
judgment or act done by the Trustee in good faith, or be otherwise responsible or
accountable under any circumstances whatsoever, INCLUDING THE TRUSTEE’S OWN NEGLIGENCE, but
excluding any of the Trustee’s own gross negligence or willful misconduct found to be such
by a final, non-appealable judgment by a court of competent jurisdiction. The Trustee may
rely on any instrument, document, or signature authorizing or supporting any action taken or
proposed to be taken by him hereunder, believed by him in good faith to be genuine. All
moneys received by the Trustee shall, until used or applied as herein provided, be held in
trust for the purposes for which they were received, but need not be segregated in any
manner from any other moneys (except to the extent required by law), and the Trustee shall
have no liability for interest on any moneys received by him hereunder. Mortgagor shall reimburse the Trustee for, and indemnify
and save the Trustee harmless against, any and all liability and expenses which may be
incurred by the Trustee in the performance of the Trustee’s duties hereunder, INCLUDING
THOSE INCURRED AS A RESULT OF THE TRUSTEE’S OWN NEGLIGENCE, but excluding such liabilities
and expenses that

Exhibit E - Page 23 of 33

 

are found by a final, non-appealable judgment by a court of competent
jurisdiction to have been incurred as a result of the gross negligence, willful misconduct,
or bad faith of the Trustee. Mortgagor’s obligations under this Section 6.1(b) shall
survive the termination of this Deed of Trust, the payment in full of the Secured
Obligations, the termination of all obligations of the Issuing Banks and the Banks in
respect of Letters of Credit, and the termination or expiration of the Commitments.

     (c) Duties of Trustee. It shall be no part of the duty of the Trustee to see to any
recording, filing or registration of this Deed of Trust or any other instrument in addition
or supplemental hereto, or to see to the payment of or be under any duty with respect to any
tax or assessment or other governmental charge which may be levied or assessed on the
Mortgaged Property, any part thereof, or against Mortgagor, or to see to the performance or
observance by Mortgagor of any of the covenants and agreements contained herein. Trustee
shall not be responsible for the execution, acknowledgment or validity of this Deed of Trust
or of any instrument in addition or supplemental hereto or for the sufficiency of the
security purported to be created hereby, and makes no representation in respect thereof or
in respect of the rights of Mortgagee. Trustee shall have the right to seek the advice of
counsel upon any matters arising hereunder and shall be fully protected in relying as to
legal matters on the advice of counsel. Trustee shall not incur any personal liability
hereunder except for his own willful misconduct; and the Trustee shall have the right to
rely on any instrument, document or signature authorizing or supporting any action taken or
proposed to be taken by him hereunder, believed by him in good faith to be genuine.

     6.2 Advances by Mortgagee or Trustee. Each and every covenant of Mortgagor herein
contained shall be performed and kept by Mortgagor solely at Mortgagor’s expense. If Mortgagor
fails to perform or keep any of the covenants of whatsoever kind or nature contained in this Deed
of Trust, Mortgagee (either by it directly or on its behalf by the Trustee or any receiver
appointed hereunder) may, but will not be obligated to, make advances to perform the same on
Mortgagor’s behalf, and Mortgagor hereby agrees to repay such sums and any reasonable attorneys’
fees incurred in connection therewith on demand plus interest thereon from the date of the advance
until reimbursement of Mortgagee at the same rate of interest as charged Reference Rate Advances
when an Event of Default exists as set forth in the Credit Agreement. In addition, Mortgagor
hereby agrees to repay on demand any costs, expenses and reasonable attorney’s fees incurred by
Mortgagee or the Trustee which are to be obligations of Mortgagor pursuant to, or allowed by, the
terms of this Deed of Trust, including such costs, expenses and reasonable attorney’s fees incurred
pursuant to the terms hereof, plus interest thereon from the date of the advance by Mortgagee or
the Trustee until reimbursement of Mortgagee or the Trustee, respectively, at the same rate of
interest as charged Reference Rate Advances when an Event of Default exists as set forth in the
Credit Agreement. Such amounts will be in addition to any sum of money which may, pursuant to the
terms and conditions of the written instruments comprising part of the Secured Obligations, be due and owing. No such advance will be deemed
to relieve Mortgagor from any default hereunder.

     6.3 Termination. If the Secured Obligations (including all Letter of Credit
Obligations) have been indefeasible paid in full in cash, all Letters of Credit have expired or
terminated and all obligations of the Issuing Banks and the Banks in respect of Letters of Credit

Exhibit E - Page 24 of 33

 

have terminated, and all Commitments have expired or terminated, then all of the Mortgaged Property
(to the extent not sold pursuant to the terms hereof) will revert to Mortgagor and the entire
estate, right, title and interest of the Trustee and Mortgagee will thereupon cease; and Mortgagee
in such case shall, upon the request of Mortgagor and the payment by Mortgagor of all reasonable
attorneys’ fees and other expenses, deliver to Mortgagor proper instruments acknowledging
satisfaction of this Deed of Trust.

     6.4 Renewals, Amendments and Other Security. Without notice or consent of Mortgagor,
renewals and extensions of the written instruments constituting part or all of the Secured
Obligations may be given at any time and amendments may be made to agreements relating to any part
of such written instruments or the Mortgaged Property. Mortgagee may take or hold other security
for the Secured Obligations without notice to or consent of Mortgagor. The acceptance of this Deed
of Trust by Mortgagee shall not waive or impair any other security Mortgagee may have or hereafter
acquire to secure the payment of the Secured Obligations nor shall the taking of any such
additional security waive or impair the Lien and security interests herein granted. The Trustee or
Mortgagee may resort first to such other security or any part thereof, or first to the security
herein given or any part thereof, or from time to time to either or both, even to the partial or
complete abandonment of either security, and such action will not be a waiver of any rights
conferred by this Deed of Trust. This Deed of Trust may not be amended, waived or modified except
in a written instrument executed by both Mortgagor and Mortgagee.

     6.5 Security Agreement, Financing Statement and Fixture Filing. This Deed of Trust
will be deemed to be and may be enforced from time to time as an assignment, chattel mortgage,
contract, deed of trust, financing statement, real estate mortgage, or security agreement, and from
time to time as any one or more thereof if appropriate under applicable state law. AS A FINANCING
STATEMENT, THIS DEED OF TRUST IS INTENDED TO COVER ALL PERSONALTY COLLATERAL INCLUDING MORTGAGOR’S
INTEREST IN ALL HYDROCARBONS AS AND AFTER THEY ARE EXTRACTED AND ALL ACCOUNTS ARISING FROM THE SALE
THEREOF AT THE WELLHEAD. THIS DEED OF TRUST SHALL BE EFFECTIVE AS A FINANCING STATEMENT FILED AS A
FIXTURE FILING WITH RESPECT TO FIXTURE COLLATERAL INCLUDED WITHIN THE MORTGAGED PROPERTY. This
Deed of Trust shall be filed in the real estate records or other appropriate records of the county
or counties in the state in which any part of the Realty Collateral and Fixture Collateral is
located as well as the Uniform Commercial Code records or other appropriate office of the state in
which any Mortgaged Property is located. At Mortgagee’s request, Mortgagor shall execute financing
statements covering the Personalty Collateral and Fixture Collateral, which financing statements
may be filed in the Uniform Commercial Code records or other appropriate office of the county or
state in which any of the Collateral is located or in any other location permitted or required to
perfect Mortgagee’s security interest under the Uniform Commercial Code. In addition, Mortgagor
hereby irrevocably authorizes Mortgagee and any affiliate, employee or agent thereof, at any time and from time to time, to file in any Uniform Commercial Code jurisdiction any financing
statement or document and amendments thereto, without the signature of Mortgagor where permitted by
law, in order to perfect or maintain the perfection of any security interest granted under this
Deed of Trust. A photographic or other reproduction of this Deed of Trust shall be sufficient as a
financing statement.

Exhibit E - Page 25 of 33

 

     6.6 Unenforceable or Inapplicable Provisions. If any term, covenant, condition or
provision hereof is invalid, illegal or unenforceable in any respect, the other provisions hereof
will remain in full force and effect and will be liberally construed in favor of the Trustee and
Mortgagee in order to carry out the provisions hereof.

     6.7 Rights Cumulative. Each and every right, power and remedy herein given to the
Trustee or Mortgagee will be cumulative and not exclusive, and each and every right, power and
remedy whether specifically herein given or otherwise existing may be exercised from time to time
and as often and in such order as may be deemed expedient by the Trustee, or Mortgagee, as the case
may be, and the exercise, or the beginning of the exercise, of any such right, power or remedy will
not be deemed a waiver of the right to exercise, at the same time or thereafter, any other right,
power or remedy. No delay or omission by the Trustee or by Mortgagee in the exercise of any right,
power or remedy will impair any such right, power or remedy or operate as a waiver thereof or of
any other right, power or remedy then or thereafter existing.

     6.8 Waiver by Mortgagee. Any and all covenants in this Deed of Trust may from time to
time by instrument in writing by Mortgagee and the Majority Banks, be waived to such extent and in
such manner as the Trustee or Mortgagee may desire, but no such waiver will ever affect or impair
either the Trustee’s or Mortgagee’s rights hereunder, except to the extent specifically stated in
such written instrument.

     6.9 Terms. The term “Mortgagor” as used in this Deed of Trust will be
construed as singular or plural to correspond with the number of persons executing this Deed of
Trust as Mortgagor. If more than one person executes this Deed of Trust as Mortgagor, his, her,
its, or their duties and liabilities under this Deed of Trust will be joint and several. The terms
“Mortgagee”, “Mortgagor”, and “Trustee” as used in this Deed of Trust
include the heirs, executors or administrators, successors, representatives, receiver, trustees and
assigns of those parties as provided in Section 6.14 below.

     6.10 Counterparts. This Deed of Trust may be executed in any number of counterparts,
each of which will for all purposes be deemed to be an original, and all of which are identical
except that, to facilitate recordation, in any particular counties counterpart portions of
Exhibit A hereto which describe Properties situated in counties other than the counties in
which such counterpart is to be recorded may have been omitted.

     6.11 Governing Law. This Deed of Trust shall be governed by and construed in
accordance with the laws of the State of Texas.

     6.12 Notice. All notices required or permitted to be given by Mortgagor, Mortgagee or
the Trustee shall be made in the manner set forth in the Credit Agreement and shall be addressed as
follows:

Exhibit E - Page 26 of 33

 

	 	 	 	 	 
	 

	 	Mortgagor:
	 	[Mortgagor]

c/o Holly Energy Partners — Operating, L.P.

100 Crescent Court, Suite 1600

Dallas, Texas 75201-6927

Attention: Stephen D. Wise

Facsimile: 214.237.3051
	 
	 	 	 	 
	 

	 	Mortgagee:
	 	Union Bank of California, N.A.

445 South Figueroa Street, 15th Floor

Los Angeles, California 90071

Attention: Don Smith

Facsimile: 213.236.6823
	 
	 	 	 	 
	 

	 	Trustee:
	 	Any notices to be given to the

Trustee shall also be delivered to Mortgagee.

     6.13 Condemnation. All awards and payments heretofore and hereafter made for the
taking of or injury to the Mortgaged Property or any portion thereof whether such taking or injury
be done under the power of eminent domain or otherwise, are hereby assigned, and shall be paid to
Mortgagee. Mortgagee is hereby authorized to collect and receive the proceeds of such awards and
payments and to give proper receipts and acquittances therefor. Mortgagor hereby agrees to make,
execute and deliver, upon request, any and all assignments and other instruments sufficient for the
purpose of confirming this assignment of the awards and payments to Mortgagee free and clear of any
encumbrances of any kind or nature whatsoever. Any such award or payment may, at the option of
Mortgagee, be retained and applied by Mortgagee after payment of attorneys’ fees, costs and
expenses incurred in connection with the collection of such award or payment toward payment of all
or a portion of the Secured Obligations, whether or not the Secured Obligations are then due and
payable, or be paid over wholly or in part to Mortgagor for the purpose of altering, restoring or
rebuilding any part of the Mortgaged Property which may have been altered, damaged or destroyed as
a result of any such taking, or other injury to the Mortgaged Property.

     6.14 Successors and Assigns. This Deed of Trust shall (a) be binding upon Mortgagor
and its successors, transferees and assigns, and (b) inure, together with the rights and remedies
of the Mortgagee hereunder, to the benefit of and be binding upon, the Mortgagee, the Issuing
Banks, and the Banks and their respective successors, transferees, and assigns, and to the benefit
of and be binding upon, the Swap Counterparties, and each of their respective successors,
transferees, and assigns to the extent such successors, transferees, and assigns of a Swap
Counterparty is a Bank or an Affiliate of a Bank. Without limiting the generality of the foregoing
clause, when any Bank assigns or otherwise transfers any interest held by it under the Credit
Agreement or other Credit Document to any other Person pursuant to the terms of the Credit
Agreement or such other Credit Document, that other Person shall thereupon become vested with all
the benefits held by such Bank under this Deed of Trust.

     6.15 Article and Section Headings. The article and section headings in this Deed of
Trust are inserted for convenience of reference and shall not be considered a part of this Deed of
Trust or used in its interpretation.

Exhibit E - Page 27 of 33

 

     6.16 Usury Not Intended. It is the intent of Mortgagor and Mortgagee in the execution
and performance of this Deed of Trust, the Credit Agreement and the other Credit Documents to
contract in strict compliance with applicable usury laws governing the Secured Obligations
including such applicable usury laws of the State of Texas and the United States of America as are
from time-to-time in effect. In furtherance thereof, Mortgagee and Mortgagor stipulate and agree
that none of the terms and provisions contained in this Deed of Trust, the Credit Agreement or the
other Credit Documents shall ever be construed to create a contract to pay, as consideration for
the use, forbearance or detention of money, interest at a rate in excess of the maximum
non-usurious rate permitted by applicable law and that for purposes hereof “interest” shall include
the aggregate of all charges which constitute interest under such laws that are contracted for,
charged or received under this Deed of Trust, the Credit Agreement and the other Credit Documents;
and in the event that, notwithstanding the foregoing, under any circumstances the aggregate amounts
taken, reserved, charged, received or paid on the Secured Obligations, include amounts which by
applicable law are deemed interest which would exceed the maximum non-usurious rate permitted by
applicable law, then such excess shall be deemed to be a mistake and Mortgagee shall credit the
same on the principal of the Secured Obligations (or if the Secured Obligations shall have been
paid in full, refund said excess to Mortgagor). In the event that the maturity of the Secured
Obligations is accelerated by reason of any election of Mortgagee resulting from any Event of
Default, or in the event of any required or permitted prepayment, then such consideration that
constitutes interest may never include more than the maximum non-usurious rate permitted by
applicable law and excess interest, if any, provided for in this Deed of Trust, the Credit
Agreement or other Credit Documents shall be canceled automatically as of the date of such
acceleration and prepayment and, if theretofore paid, shall be credited on the Secured Obligations
or, if the Secured Obligations shall have been paid in full, refunded to Mortgagor. In determining
whether or not the interest paid or payable under any specific contingencies exceeds the maximum
non-usurious rate permitted by applicable law, Mortgagor and Mortgagee shall to the maximum extent
permitted under applicable law amortize, prorate, allocate and spread in equal part during the
period of the full stated term of the Secured Obligations, all amounts considered to be interest
under applicable law of any kind contracted for, charged, received or reserved in connection with
the Secured Obligation.

     6.17 [INTENTIONALLY OMITTED.]

     6.18 No Offsets, Etc. Mortgagor hereby represents, warrants and covenants to
Mortgagee and the Trustee that there are no offsets, counterclaims or defenses at law or in equity
against this Deed of Trust or the indebtedness secured thereby.

     6.19 Bankruptcy Limitation. Notwithstanding anything contained herein to the
contrary, it is the intention of Mortgagor, the Mortgagee and the other Credit Parties that the
amount of the Secured Obligation secured by Mortgagor’s interests in any of its Property shall be
in, but not in excess of, the maximum amount permitted by fraudulent conveyance, fraudulent
transfer and other similar law, rule or regulation of any Governmental Authority applicable to
Mortgagor. Accordingly, notwithstanding anything to the contrary contained in this Deed of Trust
in any other agreement or instrument executed in connection with the payment of any of the Secured
Obligations, the amount of the Secured Obligations secured by Mortgagor’s interests in any of its
Property pursuant to this Deed of Trust shall be limited to an aggregate amount equal to the
largest amount that would not render Mortgagor’s obligations hereunder or the Liens

Exhibit E - Page 28 of 33

 

and security interest granted to the Mortgagee hereunder subject to avoidance under Section
548 of the United States Bankruptcy Code or any comparable provision of any other applicable law.

     6.20 Express Negligence Rule. The indemnification, release and assumption provisions
provided for in this Agreement shall be applicable whether or not the losses, costs, expenses and
damages in question arose solely or in part from the gross, active, passive, or concurrent
negligence, strict liability or other fault of any indemnified party. Each of Administrative
Agent, the Issuing Banks, the Banks, the Borrower, and each of the Guarantors acknowledges that
this statement complies with the express negligence rule and is conspicuous.

     6.21 Time of the Essence. Time is of the essence in the performance of each and every
obligation under this Deed of Trust.

     6.22 Financing Statement and Utility Security Instrument Filings. This Deed of Trust
may be filed as provided in Article 9 of the UCC, to assure that the security interests granted by
this Deed of Trust are perfected. In this connection, this instrument will be presented to a
filing officer under the UCC to be filed in the real estate records as a Financing Statement
covering fixtures. This Deed of Trust may also be filed as provided in TEX. BUS. & COM. CODE ANN.
Ch. 35 (Vernon 1996), as amended from time to time, relating to the granting of a security interest
by utilities. The filing of this Deed of Trust under the provisions of TEX. BUS. & COM. CODE ANN,
Ch. 35 (Vernon 1996), as amended from time to time, shall not constitute an admission by Mortgagor
that it is a utility for purposes of TEX. BUS. & COM. CODE ANN. Ch. 35 (Vernon 1996), as amended
from time to time, or any other statute, rule or regulation of any governmental authority or
agency.

[SIGNATURE PAGES FOLLOW]

Exhibit E - Page 29 of 33

 

[SIGNATURE PAGE TO MORTGAGE — PAGE 1 OF ___]

     EXECUTED as of                     , 20      .

	 	 	 	 	 
	 	MORTGAGOR:

[________________________]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 
	THE STATE OF                     

	 	§
	 

	 	§
	COUNTY OF                     

	 	§

     The foregoing instrument was acknowledged before me this __________________,
20___ by ____________, the _______________ of [MORTGAGOR], on behalf of [MORTAGOR].

     Given under my hand and official seal this _______________, 20___.

	 	 	 
	 
	[NOTARIAL SEAL]

	 	 

Notary Public in and for

the State of                     

Exhibit E - Page 30 of 33

 

[SIGNATURE PAGE TO MORTGAGE — PAGE 2 OF ___]

     EXECUTED as of ____________, 20___.

	 	 	 	 	 
	 	MORTGAGEE:

UNION BANK OF CALIFORNIA, N.A.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 
	THE STATE OF                     

	 	§
	 

	 	§
	COUNTY OF                     

	 	§

     The foregoing instrument was acknowledged before me this ____________, 20___ by
_______________, the ____________ of UNION BANK OF CALIFORNIA, N.A., a national
association, on behalf of the national association.

     Given under my hand and official seal this _______________, 20___.

	 	 	 
	 
	[NOTARIAL SEAL]

	 	 

Notary Public in and for

the State of                     

Exhibit E - Page 31 of 33

 

EXHIBIT A

DESCRIPTION OF REALTY COLLATERAL

Exhibit E - Page 32 of 33

 

SCHEDULE I

DESCRIPTION OF MATERIAL CONTRACTS

Exhibit E - Page 33 of 33

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