Document:

exv10w2

Exhibit 10.2

EXECUTION VERSION

LOADING RACK

THROUGHPUT AGREEMENT

(LOVINGTON)

     This Loading Rack Throughput Agreement (this “Agreement”) is dated as of March 31,
2010, by and between Navajo Refining Company, LLC (“Navajo”) and Holly Energy
Storage-Lovington LLC (“HEP Lovington”). Each of Navajo and HEP Lovington are individually
referred to herein as a “Party” and collectively as the “Parties.”

RECITALS:

     WHEREAS, pursuant to an LLC Interest Purchase Agreement dated March 31, 2010, by and between
HEP Tulsa LLC and HEP Refining, L.L.C., as purchasers, and Holly Refining & Marketing – Tulsa LLC
and Lea Refining Company, as sellers and Holly Corporation (the “Group 2 Purchase
Agreement”), HEP Refining, L.L.C. acquired all of the issued and outstanding membership
interests of HEP Lovington;

     WHEREAS, HEP Lovington is the owner of, among other things, an asphalt loading rack (the
“Loading Rack”) located at Navajo’s Lovington, New Mexico refinery (the
“Refinery”); and

     WHEREAS, in connection with the closing of the transactions contemplated by the Group 2
Purchase Agreement, Navajo and HEP Lovington desire to, among other things, set forth the terms and
conditions under which HEP Lovington will provide certain loading services for Navajo with respect
to the Loading Rack.

     NOW, THEREFORE, in consideration of the covenants and obligations contained herein, the
Parties hereby agree as follows:

     Section 1. Definitions

     Capitalized terms used throughout this Agreement and not otherwise defined herein shall have
the meanings set forth below.

     “Affiliate” means, with to respect to a specified person, any other person
controlling, controlled by or under common control with that first person. As used in this
definition, the term “control” includes (i) with respect to any person having voting securities or
the equivalent and elected directors, managers or persons performing similar functions, the
ownership of or power to vote, directly or indirectly, voting securities or the equivalent
representing 50% or more of the power to vote in the election of directors, managers or persons
performing similar functions, (ii) ownership of 50% or more of the equity or equivalent interest in
any person and (iii) the ability to direct the business and affairs of any person by acting as a
general partner, manager or
otherwise. Notwithstanding the foregoing, for purposes of this Agreement, Navajo, on the one
hand, and HEP Lovington, on the other hand, shall not be considered affiliates of each other.

     “Agreement” has the meaning set forth in the preamble to this Agreement.

     “Applicable Law” means any applicable statute, law, regulation, ordinance, rule,
judgment, rule of law, order, decree, permit, approval, concession, grant, franchise, license,

 

 

agreement, requirement, or other governmental restriction or any similar form of decision of, or
any provision or condition of any permit, license or other operating authorization issued under any
of the foregoing by, or any determination of, any Governmental Authority having or asserting
jurisdiction over the matter or matters in question, whether now or hereafter in effect and in each
case as amended (including, without limitation, all of the terms and provisions of the common law
of such Governmental Authority), as interpreted and enforced at the time in question.

     “Arbitrable Dispute” means any and all disputes, Claims, controversies and other
matters in question between Navajo and HEP Lovington, arising out of or relating to this Agreement
or the alleged breach hereof, or in any way relating to the subject matter of this Agreement
regardless of whether (a) allegedly extra-contractual in nature, (b) sounding in contract, tort or
otherwise, (c) provided for by Applicable Law or otherwise or (d) seeking damages or any other
relief, whether at law, in equity or otherwise.

     “Assumed OPEX” means the amount set forth on Schedule II attached hereto.

     “bpd” means barrels per day.

     “Claim” means any existing or threatened future claim, demand, suit, action,
investigation, proceeding, governmental action or cause of action of any kind or character (in each
case, whether civil, criminal, investigative or administrative), known or unknown, under any
theory, including those based on theories of contract, tort, statutory liability, strict liability,
employer liability, premises liability, products liability, breach of warranty or malpractice.

     “Claimant” has the meaning set forth in Section 11(e).

     “Closing Date” means the date on which the Loading Rack was acquired through HEP
Refining, L.L.C.’s acquisition of all of the issued and outstanding membership interests of HEP
Lovington pursuant to the Group 2 Purchase Agreement.

     “Contract Quarter” means a three-month period that commences on January 1, April 1,
July 1, or October 1 and ends on March 31, June 30, September 30, or December 31, respectively.

     “Control” (including with correlative meaning, the term “controlled by”) means, as
used with respect to any Person, the possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of such Person, whether through the ownership of
voting securities, by contract or otherwise.

     “Damaged Party” has the meaning set forth in Section 10(b).

     “Deficiency Notice” has the meaning set forth in Section 8(a).

     “Deficiency Payment” has the meaning set forth in Section 8(a).

     “Effective Time” means 11:59 p.m., Dallas, Texas time, on March 31, 2010.

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     “Force Majeure” means acts of God, strikes, lockouts or other industrial disturbances,
acts of the public enemy, wars, blockades, insurrections, riots, storms, floods, washouts, arrests,
the order of any Governmental Authority having jurisdiction while the same is in force and effect,
civil disturbances, explosions, breakage, accident to machinery, storage tanks or lines of pipe,
inability to obtain or unavoidable delay in obtaining material or equipment, and any other causes
whether of the kind herein enumerated or otherwise not reasonably within the control of the Party
claiming suspension and which by the exercise of due diligence such Party is unable to prevent or
overcome. Notwithstanding anything in this Agreement to the contrary, inability of a Party to make
payments when due, be profitable or to secure funds, arrange bank loans or other financing, obtain
credit or have adequate capacity or production (other than for reasons of Force Majeure) shall not
be regarded as events of Force Majeure.

     “Force Majeure Notice” has the meaning set forth in Section 4(b).

     “Governmental Authority” means any federal, state, local or foreign government or any
provincial, departmental or other political subdivision thereof, or any entity, body or authority
exercising executive, legislative, judicial, regulatory, administrative or other governmental
functions or any court, department, commission, board, bureau, agency, instrumentality or
administrative body of any of the foregoing.

     “Group 2 Purchase Agreement” has the meaning set forth in the recitals to this
Agreement.

     “HEP Lovington” has the meaning set forth in the preamble to this Agreement.

     “HEP Lovington Payment Obligations” has the meaning set forth in Section
13(a).

     “Holly” means Holly Corporation, a Delaware corporation.

     “Loading Rack” has the meaning set forth in the recitals to this Agreement.

     “Loading Rack Tariff” means the amount set forth on Schedule I attached
hereto.

     “Minimum Loading Rack Revenue Commitment” has the meaning set forth in Section
2(a)(i).

     “Minimum Loading Rack Throughput” means 4,000 bpd of Products, in the aggregate, on
average for each Contract Quarter.

     “Navajo” has the meaning set forth in the preamble to this Agreement.

     “Navajo Payment Obligations” has the meaning set forth in Section 12(a).

     “Omnibus Agreement” means the Fourth Amended and Restated Omnibus Agreement, dated as
of March 31, 2010, by and among Holly, the Partnership and certain of their respective
subsidiaries, as the same may be amended hereafter, from time-to-time.

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

     “OPEX Recovery Amount” means an amount equal to (a) the difference between the
percentage increase in PPI for a given year minus seven percent (7%) multiplied by (b) the
then-current Assumed OPEX.

     “Parties” or “Party” has the meaning set forth in the preamble to this
Agreement.

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

     “Person” means an individual or a corporation, limited liability company, partnership,
joint venture, trust, unincorporated organization, association, government agency or political
subdivision thereof or other entity.

     “PPI” has the meaning set forth in Section 2(a)(ii).

     “Prime Rate” means the prime rate per annum announced by Union Bank, N.A., or if Union
Bank, N.A. no longer announces a prime rate for any reason, the prime rate per annum announced by
the largest U.S. bank measured by deposits from time to time as its base rate on corporate loans,
automatically fluctuating upward or downward with each announcement of such prime rate.

     “Products” means asphalt and any other petroleum or petroleum based or derived
products loaded or unloaded through the Loading Rack.

     “Refinery” has the meaning set forth in the recitals.

     “Refund” has the meaning set forth in Section 8(c).

     “Related Indemnified Parties” means, with respect to each Party hereto, such Party’s
Affiliates, such Party and its Affiliates’ successors and assigns, and each of the respective
directors and officers (or Persons in any similar capacity if such Person is not a corporation),
employees, consultants and agents of such Party, its Affiliates and their respective successors and
assigns.

     “Respondent” has the meaning set forth in Section 11(e).

     “Term” has the meaning set forth in Section 5.

     Section 2. Agreement to Use Services Relating to Loading Rack.

     The Parties intend to be strictly bound by the terms set forth in this Agreement, which sets
forth revenues to HEP Lovington to be paid by Navajo and requires HEP Lovington to
provide certain loading services to Navajo. The principal objective of HEP Lovington is for
Navajo to meet or exceed its obligations with respect to the Minimum Loading Rack Commitment. The
principal objective of Navajo is for HEP Lovington to provide services to Navajo in a manner that
enables Navajo to load Products at the Refinery.

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     (a) Minimum Loading Rack Revenue Commitment. During the Term and subject to the terms
and conditions of this Agreement, Navajo agrees as follows:

     (i) Subject to Section 4, Navajo shall pay HEP Lovington throughput fees
associated with the Loading Rack that will satisfy the Minimum Loading Rack Commitment in
exchange for HEP Lovington providing Navajo a minimum of 4,000 barrels per day of aggregate
capacity at the Loading Rack. The “Minimum Loading Rack Revenue Commitment” shall
be an amount of revenue to HEP Lovington for each Contract Quarter determined by multiplying
the Minimum Loading Rack Throughput by the Loading Rack Tariff as such Loading Rack Tariff
may be revised pursuant to Section 2(a)(ii). Navajo will pay HEP Lovington the
Loading Rack Tariff for all quantities of Products loaded at the Loading Rack.
Notwithstanding the foregoing, in the event that the Closing Date is any date other than the
first day of a Contract Quarter, then the Minimum Loading Rack Revenue Commitment for the
initial Contract Quarter shall be prorated based upon the number of days actually in such
contract quarter and the initial Contract Quarter.

     (ii) The Loading Rack Tariff shall be adjusted on July 1 of each calendar year
commencing on July 1, 2011, by an amount equal to the upper change in the annual change
rounded to four decimal places of the Producers Price Index-Commodities-Finished Goods,
(PPI), et al. (“PPI”), produced by the U.S. Department of Labor, Bureaus of Labor
Statistics; provided that the Loading Rack Tariff shall never be increased by more than 3%
for any such calendar year. The series ID is WPUSOP3000 as of September 7, 2009 – located
at http://www.bls.gov/data/. The change factor shall be calculated as follows: annual PPI
index (most current year) less annual PPI index (most current year minus 1)
divided by annual PPI index (most current year minus 1). An example for year 2009
change is: [PPI (2008) – PPI (2007)] / PPI (2007) or (177.1 – 166.6) / 166.6 or .063 or
6.3%. If the PPI index change is negative in a given year then there will be no change in
the Loading Rack Tariff. If the above index is no longer published, then Navajo and HEP
Lovington shall negotiate in good faith to agree on a new index that gives comparable
protection against inflation, and the same method of adjustment for increases in the new
index shall be used to calculate increases in the Loading Rack Tariff. If Navajo and HEP
Lovington are unable to agree, a new index will be determined by binding arbitration in
accordance with Section 11(e), and the same method of adjustment for increases in
the new index shall be used to calculate increases in the Loading Rack Tariff. To evidence
the Parties’ agreement to each adjusted Loading Rack Tariff, the Parties shall execute an
amended, modified, revised or updated Schedule I and attach it to this Agreement.
Such amended, modified, revised or updated Schedule I shall be sequentially numbered
(e.g. Schedule I-1, Schedule I-2, etc.), dated and appended as an additional
schedule to this Agreement and shall replace the prior version of Schedule I in its
entirety.

     (iii) If Navajo is unable to transport on the Loading Rack the volumes of Products
required to meet the Minimum Loading Rack Revenue Commitment as a result of HEP Lovington’s
operational difficulties, prorationing, or the inability to provide sufficient capacity for
the Minimum Loading Rack Throughput, then the Minimum

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Loading Rack Revenue Commitment applicable to the Contract Quarter during which Navajo is unable to transport such volumes
of Products will be reduced by an amount equal to: (A) the volume of Products that Navajo
was unable to load at the Loading Rack (but not to exceed the Minimum Loading Rack
Throughput), as a result of HEP Lovington’s operational difficulties, prorationing or
inability to provide sufficient capacity to achieve the Minimum Loading Rack Throughput,
multiplied by (B) the Loading Rack Tariff. This Section 2(a)(iii) shall not apply
in the event HEP Lovington gives notice of a Force Majeure event in accordance with
Section 4, in which case the Minimum Loading Rack Revenue Commitment shall be
suspended in accordance with and as provided in Section 4.

     (b) Obligations of HEP Lovington. During the Term and subject to the terms and
conditions of this Agreement, including Section 11(b), HEP Lovington agrees to: (i) own or
lease, operate and maintain the Loading Rack and all related assets necessary to operate the
Loading Rack; (ii) provide the services required under this Agreement and perform all operations
relating to the Loading Rack; and (iii) maintain adequate property and liability insurance covering
the Loading Rack and any related assets owned by HEP and necessary for the operation of the Loading
Rack. Notwithstanding the preceding sentence, subject to Section 11(b) of this Agreement
and Article V of the Omnibus Agreement, HEP Lovington is free to sell any of its assets, including
assets that provide services under this Agreement, and Navajo is free to merge with another entity
and to sell all of its assets or equity to another entity at any time.

     (c) Notification of Utilization. Upon request by HEP Lovington, Navajo will provide
to HEP Lovington written notification of Navajo’s reasonable good faith estimate of their
anticipated future utilization of the Loading Rack as soon as reasonably practicable after
receiving such request.

     (d) Scheduling and Accepting Movement. HEP Lovington will use its reasonable
commercial efforts to schedule movement and accept movements of Products in a manner that is
consistent with the historical dealings between the Parties, as such dealings may change from time
to time.

     (e) Taxes. Navajo will pay all taxes, import duties, license fees and other charges
by any Governmental Authority levied on or with respect to the Products handled by Navajo for
loading or unloading by HEP Lovington. Should any Party be required to pay or collect any taxes,
duties, charges and or assessments pursuant to any Applicable Law or authority now in effect or
hereafter to become effective which are payable by the any other Party pursuant to this Section
2(e) the proper Party shall promptly reimburse the other Party therefor.

     (f) Timing of Payments. Navajo will make payments to HEP Lovington by electronic
payment with immediately available funds on a monthly basis during the Term with respect to
services rendered or reimbursable costs or expenses incurred by HEP Lovington under this Agreement
in the prior month. Payments not received by HEP Lovington on or prior to the
applicable payment date will accrue interest at the Prime Rate from the applicable payment
date until paid.

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     (g) Increases in Tariff Rates. If new Applicable Laws are enacted that require HEP
Lovington to make capital expenditures with respect to the Loading Rack, HEP Lovington may amend
the Loading Rack Tariff in order to recover HEP Lovington’s cost of complying with these Applicable
Laws (as determined in good faith and including a reasonable return); provided,
however, that HEP Lovington may not amend the Loading Rack Tariff pursuant to this
Section 2(g) unless and until HEP Lovington has made capital expenditures of $500,000.00 in
the aggregate with respect to the Loading Rack in order to comply with such new Applicable Laws.
Navajo and HEP Lovington shall use their reasonable commercial efforts to comply with these
Applicable Laws, and shall negotiate in good faith to mitigate the impact of these Applicable Laws
and to determine the amount of the new tariff rates. If Navajo and HEP Lovington are unable to
agree on the amount of the new tariff rates that HEP Lovington will charge, such tariff rates will
be determined by binding arbitration in accordance with Section 11(e). Any applicable
exhibit or schedule to this Agreement will be updated, amended or revised, as applicable, in
accordance with this Agreement to reflect any changes in tariff rates agreed to in accordance with
this Section 2(g).

     (h) Reimbursement of Operating Expenses. At the end of the first four (4) Contract
Quarters following the Closing Date, HEP Lovington shall calculate its aggregate operating expenses
incurred in the operation of the Loading Rack (but such calculation shall not include extraordinary
and non-recurring items of expense that are not reasonably expected to recur in future periods
during the Term). In the event that such aggregate operating expenses exceed the Assumed OPEX, (i)
Navajo shall reimburse HEP Lovington for such operating expenses incurred in excess of the Assumed
OPEX, and (ii) HEP Lovington shall increase the Loading Rack Tariff by the amount necessary to
increase the Minimum Loading Rack Revenue Commitment by an amount equal to such aggregate operating
expenses in excess of the Assumed OPEX for the remainder of the Term, and the Parties shall execute
an amended, modified, revised or updated Schedule II reflecting such aggregate operating
expenses as the new Assumed OPEX. In the event that such aggregate operating expenses are less
than the Assumed OPEX, HEP Lovington shall decrease the Loading Rack Tariff by the amount necessary
to decrease the Minimum Loading Rack Revenue Commitment by an amount equal to the difference
between the Assumed OPEX and such actual operating expenses for the remainder of the Term, and the
Parties shall execute an amended, modified, revised or updated Schedule II reflecting such
aggregate operating expenses as the new Assumed OPEX. In the event that the PPI increase for any
given year is greater than seven percent (7%), then, in addition to any other applicable increases
during such year, HEP Lovington shall increase the Loading Rack Tariff by an additional amount
necessary to increase the Minimum Loading Rack Revenue Commitment by the OPEX Recovery Amount.
Such OPEX Recovery Amount shall be added to the then-current Assumed OPEX, and the Parties shall
execute an amended, modified, revised or updated Schedule II reflecting the addition of
such OPEX Recovery Amount to the Assumed OPEX.

     Section 3. Agreement to Remain Shipper

     With respect to any Products that are transported, stored or handled in connection with any of
the Loading Rack, Navajo agrees that it will continue acting in the capacity of the shipper
of any such Products for its own account at all times that such Products are being
transported, stored or handled in such Loading Rack.

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     Section 4. Notification of Shut-down or Reconfiguration; Force Majeure

     (a) Navajo must deliver to HEP Lovington at least six months advance written notice of any
planned shut down or reconfiguration (excluding planned maintenance turnarounds) of the Refinery or
any portion of the Refinery that would reduce the Refinery’s output. Navajo will use its
commercially reasonable efforts to mitigate any reduction in revenues or throughput obligations
under this Agreement that would result from such a shut down or reconfiguration. If Navajo shuts
down or reconfigures the Refinery or any portion of the Refinery (excluding planned maintenance
turnarounds) and reasonably believes in good faith that such shut down or reconfiguration will
jeopardize its ability to satisfy its Minimum Loading Rack Revenue Commitment under this Agreement,
then within 90 days of the delivery of the written notice of the planned shut down or
reconfiguration, Navajo shall (i) propose a new Minimum Loading Rack Revenue Commitment under this
Agreement such that the ratio of the new Minimum Loading Rack Revenue Commitment under this
Agreement over the anticipated production level following the shut down or reconfiguration will be
approximately equal to the ratio of the original Minimum Loading Rack Revenue Commitment under this
Agreement over the original production level and (ii) propose the date on which the new Minimum
Loading Rack Revenue Commitment under this Agreement shall take effect. Unless objected to by HEP
Lovington within 60 days of receipt by HEP Lovington of such proposal, such new Minimum Loading
Rack Revenue Commitment under this Agreement shall become effective as of the date proposed by
Navajo. To the extent that HEP Lovington does not agree with Navajo’s proposal, any changes in
Navajo’s obligations under this Agreement, or the date on which such changes will take effect, will
be determined by binding arbitration in accordance with Section 13(e). Any applicable
exhibit or schedule to this Agreement will be updated, amended or revised, as applicable, in
accordance with this Agreement to reflect any change in the Minimum Loading Rack Revenue Commitment
under this Agreement agreed to in accordance with this Section 4(a).

     (b) In the event that any Party is rendered unable, wholly or in part, by a Force Majeure
event from performing its obligations under this Agreement for a period of more than thirty (30)
consecutive days, then, upon the delivery of notice and full particulars of the Force Majeure event
in writing within a reasonable time after the occurrence of the Force Majeure event relied on
(“Force Majeure Notice”), the obligations of the Parties, so far as they are affected by
the Force Majeure event, shall be suspended for the duration of any inability so caused. Any
suspension of the obligations of the Parties as a result of this Section 4(b) shall extend
the Term (to the extent so affected) for a period equivalent to the duration of the inability set
forth in the Force Majeure Notice. Navajo will be required to pay any amounts accrued and due
under this Agreement at the time of the Force Majeure event. The cause of the Force Majeure event
shall so far as possible be remedied with all reasonable dispatch, except that no Party shall be
compelled to resolve any strikes, lockouts or other industrial disputes other than as it shall
determine to be in its best interests. In the event a Force Majeure event prevents HEP Lovington
or Navajo from performing substantially all of their respective obligations under this Agreement
for a period of more than one (1) year, this Agreement may be terminated by HEP Lovington or Navajo
by providing written notice thereof to the other Party.

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     Section 5. Effectiveness and Term

     This Agreement shall be effective as of the Effective Time, and shall terminate at 12:01 a.m.
Dallas, Texas, time on March 31, 2025, unless extended by written mutual agreement of the Parties
or as set forth in Section 6 (the “Term). The Party(ies) desiring to extend this
Agreement pursuant to this Section 5 shall provide prior written notice to the other
Parties of its desire to so extend this Agreement; such written notice shall be provided not more
than twenty-four (24) months and not less than the later of twelve (12) months prior to the date of
termination or ten (10) days after receipt of a written request from another Party (which request
may be delivered no earlier than twelve (12) months prior to the date of termination) to provide
any such notice or lose such right.

     Section 6. Right to Enter into a New Agreement

     (a) In the event that Navajo provides prior written notice to HEP Lovington of the desire of
Navajo to extend this Agreement by written mutual agreement of the Parties, the Parties shall
negotiate in good faith to extend this Agreement by written mutual agreement, but, if such
negotiations fail to produce a written mutual agreement for extension by a date six months prior to
the termination date, then HEP Lovington shall have the right to negotiate to enter into one or
more loading agreements with one or more third parties to begin after the date of termination,
provided that until the end of one year following termination without renewal of this Agreement,
Navajo will have the right to enter into a new loading agreement with HEP Lovington on commercial
terms that substantially match the terms upon which HEP Lovington propose to enter into an
agreement with a third party for similar services with respect to the Loading Rack. In such
circumstances, HEP Lovington shall give Navajo forty-five (45) days prior written notice of any
proposed new loading agreement with a third party, and such notice shall inform Navajo of the fee
schedules, tariffs, duration and any other terms of the proposed third party agreement and Navajo
shall have forty-five (45) days following receipt of such notice to agree to the terms specified in
the notice or Navajo shall lose the rights specified by this Section 6(a) with respect to
the assets that are the subject of such notice.

     (b) In the event that Navajo fails to provide prior written notice to HEP Lovington of the
desire of Navajo to extend this Agreement by written mutual agreement of the Parties pursuant to
Section 5, HEP Lovington shall have the right, during the period from the date of Navajo’s
failure to provide written notice pursuant to Section 5 to the date of termination of this
Agreement, to negotiate to enter into a new loading agreement with a third party; provided,
however, that at any time during the twelve (12) months prior to the expiration of the Term, Navajo
will have the right to enter into a new loading agreement with HEP Lovington on commercial terms
that substantially match the terms upon which HEP Lovington propose to enter into an agreement with
a third party for similar services with respect to the Loading Rack. In such circumstances, HEP
Lovington shall give Navajo forty-five (45) days prior written notice of any proposed new loading
agreement with a third party, and such notice shall inform Navajo of the fee schedules, tariffs,
duration and any other terms of the proposed third party agreement and Navajo shall have forty-five
(45) days following receipt of such notice to agree to the terms specified in the notice or Navajo
shall lose the rights specified by this Section 6(b) with respect to the assets that are
the subject of such notice.

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     Section 7. Notices

     (a) Any notice or other communication given under this Agreement shall be in writing and shall
be (i) delivered personally, (ii) sent by documented overnight delivery service, (iii) sent by
email transmission, or (iv) sent by first class mail, postage prepaid (certified or registered
mail, return receipt requested). Such notice shall be deemed to have been duly given (x) if
received, on the date of the delivery, with a receipt for delivery, (y) if refused, on the date of
the refused delivery, with a receipt for refusal, or (z) with respect to email transmissions, on
the date the recipient confirms receipt. Notices or other communications shall be directed to the
following addresses:

          Notices to Navajo:

c/o Holly Corporation

100 Crescent Court, Suite 1600

Dallas, Texas 75201

Attn: David L. Lamp

Email address: president@hollycorp.com

with a copy, which shall not constitute notice, but is required in order to

giver proper notice, to:

c/o Holly Corporation

100 Crescent Court, Suite 1600

Dallas, Texas 75201

Attn: General Counsel

Email address: generalcounsel@hollycorp.com

          Notices to HEP Lovington:

c/o Holly Energy Partners, L.P.

100 Crescent Court, Suite 1600

Dallas, TX 75201

Attn: David G. Blair

Email address: SVP-HEP@hollyenergy.com

with a copy, which shall not constitute notice, but is required in order to

give proper notice, to:

c/o Holly Energy Partners, L.P.

100 Crescent Court, Suite 1600

Dallas, Texas 75201

Attn: General Counsel

Email address: generalcounsel@hollycorp.com

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     (b) Any Party may at any time change its address for service from time to time by giving
notice to the other Parties in accordance with this Section 7.

     Section 8. Deficiency Payments

     (a) As soon as practicable following the end of each Contract Quarter under this Agreement,
HEP Lovington shall deliver to Navajo a written notice (the “Deficiency Notice”) detailing
any failure of Navajo to meet their obligations under Section 2(a)(i), provided,
however, that Navajo’s obligations pursuant to the Minimum Loading Rack Revenue Commitment
shall be assessed on a quarterly basis for the purposes of this Section 8. The Deficiency
Notice shall (i) specify in reasonable detail the nature of any deficiency and (ii) specify the
approximate dollar amount that HEP Lovington believes would have been paid by Navajo to HEP
Lovington if Navajo had complied with its obligations pursuant to Section 2(a)(i) (the
“Deficiency Payment”). Navajo shall pay the Deficiency Payment to HEP Lovington upon the
later of: (A) ten (10) days after their receipt of the Deficiency Notice and (B) thirty (30) days
following the end of the related Contract Quarter.

     (b) If Navajo disagrees with the Deficiency Notice, then, following the payment of the
undisputed portion of the Deficiency Payment to HEP Lovington, if any, Navajo shall send written
notice thereof regarding the disputed portion of the Deficiency Payment to HEP Lovington and a
senior officer of Holly (on behalf of Navajo) and a senior officer of the Partnership (on behalf of
HEP Lovington) shall meet or communicate by telephone at a mutually acceptable time and place, and
thereafter as often as they reasonably deem necessary and shall negotiate in good faith to attempt
to resolve any differences that they may have with respect to matters specified in the Deficiency
Notice. During the 30-day period following the payment of the Deficiency Payment, Navajo shall
have access to the working papers of HEP Lovington relating to the Deficiency Notice. If such
differences are not resolved within thirty (30) days following Navajo’s receipt of the Deficiency
Notice, Navajo and HEP Lovington shall, within forty-five (45) days following Navajo’s receipt of
the Deficiency Notice, submit any and all matters which remain in dispute and which were properly
included in the Deficiency Notice to arbitration in accordance with Section 11(e).

     (c) If it is finally determined pursuant to this Section 8 that Navajo is required to
pay any or all of the disputed portion of the Deficiency Payment, Navajo shall promptly pay such
amount to HEP Lovington, together with interest thereon at the Prime Rate, in immediately available
funds.

     (d) The Parties acknowledge and agree that there shall be no carry-over of deficiency payments
beyond each Calendar Quarter provided for in Section 8(a) with respect to the Minimum
Loading Rack Revenue Commitment.

Loading Rack Throughput Agreement (Lovington)

11

 

     Section 9. Right of First Refusal. The Parties acknowledge the right of first
refusal of Navajo with respect to the Loading Rack provided in the Omnibus Agreement.

     Section 10. Limitation of Damages.

     (a) NOTWITHSTANDING ANYTHING CONTAINED TO THE CONTRARY IN ANY OTHER PROVISION OF THIS
AGREEMENT AND EXCEPT FOR CLAIMS MADE BY THIRD PARTIES WHICH SHALL NOT BE LIMITED BY THIS PARAGRAPH,
THE PARTIES AGREE THAT THE RECOVERY BY ANY PARTY OF ANY LIABILITIES, DAMAGES, COSTS OR OTHER
EXPENSES SUFFERED OR INCURRED BY IT AS A RESULT OF ANY BREACH OR NONFULFILLMENT BY A PARTY OF ANY
OF ITS REPRESENTATIONS, WARRANTIES, COVENANTS, AGREEMENTS OR OTHER OBLIGATIONS UNDER THIS
AGREEMENT, SHALL BE LIMITED TO ACTUAL DAMAGES AND SHALL NOT INCLUDE OR APPLY TO, NOR SHALL ANY
PARTY BE ENTITLED TO RECOVER, ANY INDIRECT, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES
(INCLUDING, WITHOUT LIMITATION, ANY DAMAGES ON ACCOUNT OF LOST PROFITS OR OPPORTUNITIES OR BUSINESS
INTERRUPTION OR DIMINUTION IN VALUE) SUFFERED OR INCURRED BY ANY PARTY; PROVIDED,
HOWEVER, THAT SUCH RESTRICTION AND LIMITATION SHALL NOT APPLY (x) AS A RESULT OF A THIRD
PARTY CLAIM FOR SUCH INDIRECT, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES OR (y) TO INDIRECT,
CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES (INCLUDING, WITHOUT LIMITATION, ANY DAMAGES ON ACCOUNT
OF LOST PROFITS OR OPPORTUNITIES OR BUSINESS INTERRUPTION OR DIMINUTION IN VALUE) THAT ARE A RESULT
OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE BREACHING OR NONFULFILLING PARTY OR ITS
AFFILIATES.

     (b) Notwithstanding anything in this Agreement to the contrary and solely for the purpose of
determining which of Navajo or HEP Lovington, as applicable, shall be liable in a particular
circumstance, no Party shall be liable to another Party for any loss, damage, injury, judgment,
claim, cost, expense or other liability suffered or incurred by such Party (the “Damaged
Party”) except to the extent that the Party causes such loss, damage, injury, judgment, claim,
cost, expense or other liability suffered or incurred by the Damaged Party or owns or operates the
Loading Rack or other property in question responsible for causing such loss, damage, injury,
judgment, claim, cost, expense or other liability suffered or incurred by the Damaged Party.

     Section 11. Miscellaneous

     (a) Amendments and Waivers. No amendment or modification of this Agreement shall be
valid unless it is in writing and signed by the Parties. No waiver of any provision of this
Agreement shall be valid unless it is in writing and signed by the Party against whom the waiver is
sought to be enforced. Any of the exhibits or schedules to this Agreement may be amended,
modified, revised or updated by the Parties if each of the Parties executes an amended, modified,
revised or updated exhibit or schedule, as applicable, and attaches it to this Agreement. Such
amended, modified, revised or updated exhibits or schedules shall be sequentially numbered (e.g.
Schedule I-1, Schedule I-2, etc.), dated and appended as an additional exhibit or schedule to this

Loading Rack Throughput Agreement (Lovington)

12

 

Agreement and shall replace the prior exhibit or schedule, as applicable, in its entirety,
except as specified therein. No failure or delay in exercising any right hereunder, and no course
of conduct, shall operate as a waiver of any provision of this Agreement. No single or partial
exercise of a right hereunder shall preclude further or complete exercise of that right or any
other right hereunder.

     (b) Successors and Assigns. This Agreement shall inure to the benefit of, and shall
be binding upon, Navajo, HEP Lovington and their respective successors and permitted assigns.
Neither this Agreement nor any of the rights or obligations hereunder shall be assigned without the
prior written consent of Navajo (in the case of any assignment by HEP Lovington) or HEP Lovington
(in the case of any assignment by Navajo), in each case, such consent is not to be unreasonably
withheld or delayed; provided, however, that (i) HEP Lovington may make such an assignment
(including a partial pro rata assignment) to an Affiliate of HEP Lovington without Navajo’s
consent, (ii) Navajo may make such an assignment (including a pro rata partial assignment) to an
Affiliate of Navajo without HEP Lovington’s consent, (iii) Navajo may make a collateral assignment
of their rights and obligations hereunder, and (iv) HEP Lovington may make a collateral assignment
of their rights hereunder and/or grant a security interest in all or a portion of the Loading Rack
to a bona fide third party lender or debt holder, or trustee or representative for any of them,
without Navajo’s consent, if such third party lender, debt holder or trustee shall have executed
and delivered to Navajo a non-disturbance agreement in such form as is reasonably satisfactory to
Navajo and such third party lender, debt holder or trustee and Navajo executes an acknowledgement
of such collateral assignment in such form as may from time to time be reasonably requested. Any
attempt to make an assignment otherwise than as permitted by the foregoing shall be null and void.
The Parties agree to require their respective successors, if any, to expressly assume, in a form of
agreement reasonably acceptable to the other Parties, their obligations under this Agreement.

     (c) Severability. If any provision of this Agreement shall be held invalid or
unenforceable by a court or regulatory body of competent jurisdiction, the remainder of this
Agreement shall remain in full force and effect.

     (d) Choice of Law. This Agreement shall be subject to and governed by the laws of the
State of Delaware, excluding any conflicts-of-law rule or principle that might refer the
construction or interpretation of this Agreement to the laws of another state.

     (e) Arbitration Provision. Any and all Arbitrable Disputes must be resolved through
the use of binding arbitration using three arbitrators, in accordance with the Commercial
Arbitration Rules of the American Arbitration Association, as supplemented to the extent necessary
to determine any procedural appeal questions by the Federal Arbitration Act (Title 9 of the United
States Code). If there is any inconsistency between this Section 11(e) and the Commercial
Arbitration Rules or the Federal Arbitration Act, the terms of this Section 11(e) will
control the rights and obligations of the Parties. Arbitration must be initiated within the time
limits set forth in this Agreement, or if no such limits apply, then within a reasonable time or
the time period allowed by the applicable statute of limitations. Arbitration may be initiated by
a Party (“Claimant”) serving written notice on the other Party (“Respondent”) that
the Claimant elects to refer the Arbitrable Dispute to binding arbitration. Claimant’s notice
initiating binding arbitration must identify the arbitrator Claimant has appointed. The Respondent
shall respond to

Loading Rack Throughput Agreement (Lovington)

13

 

Claimant
within thirty (30) days after receipt of Claimant’s notice, identifying the
arbitrator Respondent has appointed. If the Respondent fails for any reason to name an arbitrator
within the 30-day period, Claimant shall petition the American Arbitration Association for
appointment of an arbitrator for Respondent’s account. The two arbitrators so chosen shall select
a third arbitrator within thirty (30) days after the second arbitrator has been appointed. The
Claimant will pay the compensation and expenses of the arbitrator named by it, and the Respondent
will pay the compensation and expenses of the arbitrator named by or for it. The costs of
petitioning for the appointment of an arbitrator, if any, shall be paid by Respondent. The
Claimant and Respondent will each pay one-half of the compensation and expenses of the third
arbitrator. All arbitrators must (i) be neutral parties who have never been officers, directors or
employees of any of Navajo, HEP Lovington or any of their Affiliates and (ii) have not less than
seven (7) years experience in the petroleum transportation industry. The hearing will be conducted
in Dallas, Texas and commence within thirty (30) days after the selection of the third arbitrator.
Navajo, HEP Lovington and the arbitrators shall proceed diligently and in good faith in order that
the award may be made as promptly as possible. Except as provided in the Federal Arbitration Act,
the decision of the arbitrators will be binding on and non-appealable by the Parties hereto. The
arbitrators shall have no right to grant or award indirect, consequential, punitive or exemplary
damages of any kind. The Arbitrable Disputes may be arbitrated in a common proceeding along with
disputes under other agreements between Navajo, HEP Lovington or their Affiliates to the extent
that the issues raised in such disputes are related. Without the written consent of the Parties,
no unrelated disputes or third party disputes may be joined to an arbitration pursuant to this
Agreement.

     (f) Rights of Limited Partners. The provisions of this Agreement are enforceable
solely by the Parties, and no limited partner of the Partnership shall have the right, separate and
apart from the Partnership, to enforce any provision of this Agreement or to compel any Party to
comply with the terms of this Agreement.

     (g) Further Assurances. In connection with this Agreement and all transactions
contemplated by this Agreement, each signatory Party hereto agrees to execute and deliver such
additional documents and instruments and to perform such additional acts as may be necessary or
appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of
this Agreement and all such transactions.

     (h) Headings. Headings of the Sections of this Agreement are for convenience of the
Parties only and shall be given no substantive or interpretative effect whatsoever. All references
in this Agreement to Sections are to Sections of this Agreement unless otherwise stated.

     Section 12. Guarantee by Holly

     (a) Payment and Performance Guaranty. Holly unconditionally, absolutely, continually
and irrevocably guarantees, as principal and not as surety, to HEP Lovington the punctual and
complete payment in full when due of all amounts due from Navajo under the Agreement (collectively,
the “Navajo Payment Obligations”). Holly agrees that HEP Lovington shall be entitled to
enforce directly against Holly any of the Navajo Payment Obligations.

Loading Rack Throughput Agreement (Lovington)

14

 

     (b) Guaranty Absolute. Holly hereby guarantees that the Navajo Payment Obligations
will be paid strictly in accordance with the terms of the Agreement. The obligations of Holly
under this Agreement constitute a present and continuing guaranty of payment, and not of collection
or collectability. The liability of Holly under this Agreement shall be absolute, unconditional,
present, continuing and irrevocable irrespective of:

     (i) any assignment or other transfer of the Agreement or any of the rights thereunder
of HEP Lovington;

     (ii) any amendment, waiver, renewal, extension or release of or any consent to or
departure from or other action or inaction related to the Agreement;

     (iii) any acceptance by HEP Lovington of partial payment or performance from Navajo;

     (iv) any bankruptcy, insolvency, reorganization, arrangement, composition, adjustment,
dissolution, liquidation or other like proceeding relating to Navajo or any action taken
with respect to the Agreement by any trustee or receiver, or by any court, in any such
proceeding;

     (v) any absence of any notice to, or knowledge of, Holly, of the existence or
occurrence of any of the matters or events set forth in the foregoing subsections (i)
through (iv); or

     (vi) any other circumstance which might otherwise constitute a defense available to, or
a discharge of, a guarantor.

     The obligations of Holly hereunder shall not be subject to any reduction, limitation,
impairment or termination for any reason, including any claim of waiver, release, surrender,
alteration or compromise, and shall not be subject to any defense or setoff, counterclaim,
recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of
the Navajo Payment Obligations or otherwise.

     (c) Waiver. Holly hereby waives promptness, diligence, all setoffs, presentments,
protests and notice of acceptance and any other notice relating to any of the Navajo Payment
Obligations and any requirement for HEP Lovington to protect, secure, perfect or insure any
security interest or lien or any property subject thereto or exhaust any right or take any action
against Navajo, any other entity or any collateral.

     (d) Subrogation Waiver. Holly agrees that for so long as there is a current or
ongoing default or breach of this Agreement by Navajo, Holly shall not have any rights (direct or
indirect) of subrogation, contribution, reimbursement, indemnification or other rights of payment
or recovery from Navajo for any payments made by Holly under this Section 12, and Holly
hereby irrevocably waives and releases, absolutely and unconditionally, any such rights of
subrogation, contribution, reimbursement, indemnification and other rights of payment or recovery
it may now have or hereafter acquire against Navajo during any period of default or

Loading Rack Throughput Agreement (Lovington)

15

 

breach of this Agreement by Navajo until such time as there is no current or ongoing default
or breach of this Agreement by Navajo.

     (e) Reinstatement. The obligations of Holly under this Section 12 shall
continue to be effective or shall be reinstated, as the case may be, if at any time any payment of
any of the Navajo Payment Obligations is rescinded or must otherwise be returned to Navajo or any
other entity, upon the insolvency, bankruptcy, arrangement, adjustment, composition, liquidation or
reorganization of Navajo or such other entity, or for any other reason, all as though such payment
had not been made.

     (f) Continuing Guaranty. This Section 12 is a continuing guaranty and shall
(i) remain in full force and effect until the first to occur of the indefeasible payment in full of
all of the Navajo Payment Obligations, (ii) be binding upon Holly, its successors and assigns and
(iii) inure to the benefit of and be enforceable by HEP Lovington and its respective successors,
transferees and assigns.

     (g) No
Duty to Pursue Others. It shall not be necessary for HEP Lovington (and Holly
hereby waives any rights which Holly may have to require HEP Lovington), in order to enforce such
payment by Holly, first to (i) institute suit or exhaust its remedies against Navajo or others
liable on the Navajo Payment Obligations or any other person, (ii) enforce HEP Lovington’s rights
against any other guarantors of the Navajo Payment Obligations, (iii) join Navajo or any others
liable on the Navajo Payment Obligations in any action seeking to enforce this Section 12,
(iv) exhaust any remedies available to HEP Lovington against any security which shall ever have
been given to secure the Navajo Payment Obligations, or (v) resort to any other means of obtaining
payment of the Navajo Payment Obligations.

     Section 13. Guarantee by the Partnership and Operating Partnership.

     (a) Payment and Performance Guaranty. Each of the Partnership and the Operating
Partnership unconditionally, absolutely, continually and irrevocably guarantees, as principal and
not as surety, to Navajo the punctual and complete payment in full when due of all amounts due from
HEP Lovington under the Agreement (collectively, the “HEP Lovington Payment Obligations”).
Each of the Partnership and the Operating Partnership agrees that Navajo shall be entitled to
enforce directly against the Partnership and the Operating Partnership any of the HEP Lovington
Payment Obligations.

     (b) Guaranty Absolute. Each of the Partnership and the Operating Partnership hereby
guarantees that the HEP Lovington Payment Obligations will be paid strictly in accordance with the
terms of the Agreement. The obligations of each of the Partnership and the Operating Partnership
under this Agreement constitute a present and continuing guaranty of payment, and not of collection
or collectability. The liability of each of the Partnership and the Operating Partnership under
this Agreement shall be absolute, unconditional, present, continuing and irrevocable irrespective
of:

     (i) any assignment or other transfer of the Agreement or any of the rights thereunder
of Navajo;

Loading Rack Throughput Agreement (Lovington)

16

 

     (ii) any amendment, waiver, renewal, extension or release of or any consent to or
departure from or other action or inaction related to the Agreement;

     (iii) any acceptance by Navajo of partial payment or performance from HEP Lovington;

     (iv) any bankruptcy, insolvency, reorganization, arrangement, composition, adjustment,
dissolution, liquidation or other like proceeding relating to HEP Lovington or any action
taken with respect to the Agreement by any trustee or receiver, or by any court, in any such
proceeding;

     (v) any absence of any notice to, or knowledge of, the Partnership or the Operating
Partnership, of the existence or occurrence of any of the matters or events set forth in the
foregoing subsections (i) through (iv); or

     (vi) any other circumstance which might otherwise constitute a defense available to, or
a discharge of, a guarantor.

     The obligations of each of the Partnership and the Operating Partnership hereunder shall not
be subject to any reduction, limitation, impairment or termination for any reason, including any
claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any
defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity,
illegality or unenforceability of the HEP Lovington Payment Obligations or otherwise.

     (c) Waiver. Each of the Partnership and the Operating Partnership hereby waives
promptness, diligence, all setoffs, presentments, protests and notice of acceptance and any other
notice relating to any of the HEP Lovington Payment Obligations and any requirement for Navajo to
protect, secure, perfect or insure any security interest or lien or any property subject thereto or
exhaust any right or take any action against HEP Lovington, any other entity or any collateral.

     (d) Subrogation Waiver. Each of the Partnership and the Operating Partnership agrees
that for so long as there is a current or ongoing default or breach of this Agreement by HEP
Lovington, the Partnership and the Operating Partnership shall not have any rights (direct or
indirect) of subrogation, contribution, reimbursement, indemnification or other rights of payment
or recovery from HEP Lovington for any payments made by the Partnership or the Operating
Partnership under this Section 13, and each of the Partnership and the Operating
Partnership hereby irrevocably waives and releases, absolutely and unconditionally, any such rights
of subrogation, contribution, reimbursement, indemnification and other rights of payment or
recovery it may now have or hereafter acquire against HEP Lovington during any period of default or
breach of this Agreement by HEP Lovington until such time as there is no current or ongoing default
or breach of this Agreement by HEP Lovington.

     (e) Reinstatement. The obligations of the Partnership and the Operating Partnership
under this Section 13 shall continue to be effective or shall be reinstated, as the case
may be, if at any time any payment of any of the HEP Lovington Payment Obligations is rescinded or
must

Loading Rack Throughput Agreement (Lovington)

17

 

otherwise be returned to HEP Lovington or any other entity, upon the insolvency, bankruptcy,
arrangement, adjustment, composition, liquidation or reorganization of HEP Lovington or such other
entity, or for any other reason, all as though such payment had not been made.

     (f) Continuing Guaranty. This Section 13 is a continuing guaranty and shall
(i) remain in full force and effect until the first to occur of the indefeasible payment in full of
all of the HEP Lovington Payment Obligations, (ii) be binding upon the Partnership, the Operating
Partnership, and each of their respective successors and assigns and (iii) inure to the benefit of
and be enforceable by Navajo and their respective successors, transferees and assigns.

     (g) No Duty to Pursue Others. It shall not be necessary for Navajo (and each of the
Partnership and the Operating Partnership hereby waives any rights which the Partnership or the
Operating Partnership, as applicable, may have to require Navajo), in order to enforce such payment
by the Partnership or the Operating Partnership, first to (i) institute suit or exhaust its
remedies against HEP Lovington or others liable on the HEP Lovington Payment Obligations or any
other person, (ii) enforce Navajo’ rights against any other guarantors of the HEP Lovington Payment
Obligations, (iii) join HEP Lovington or any others liable on the HEP Lovington Payment Obligations
in any action seeking to enforce this Section 13, (iv) exhaust any remedies available to
Navajo against any security which shall ever have been given to secure the HEP Lovington Payment
Obligations, or (v) resort to any other means of obtaining payment of the HEP Lovington Payment
Obligations.

[Remainder of page intentionally left blank. Signature pages follow.]

Loading Rack Throughput Agreement (Lovington)

18

 

     IN WITNESS WHEREOF, the undersigned Parties have executed this Agreement as of the date
first written above.

	 	 	 	 	 
	 	HEP LOVINGTON:

HOLLY ENERGY STORAGE-LOVINGTON LLC

 	 
	 	By:  	/s/ David G. Blair
 	 
	 	 	David G. Blair 	 
	 	 	President 	 
	 
	 	NAVAJO:

NAVAJO REFINING COMPANY, L.L.C.

 	 
	 	By:  	/s/ David L. Lamp
 	 
	 	 	David L. Lamp 	 
	 	 	Executive Vice President 	 
	 

	 	 	 	 	 
	ACKNOWLEDGED AND AGREED

FOR PURPOSES OF Section 8(b)

AND Section 12:

HOLLY CORPORATION

 	 	 
	By:  	/s/ David L. Lamp
 	 	 
	 	David L. Lamp 	 	 
	 	President 	 	 
	 

Signature Page 1 of 2 to the Loading Rack Throughput Agreement (Lovington)

 

 

	 	 	 	 	 
	ACKNOWLEDGED AND AGREED

FOR PURPOSES OF Section 8(b)

AND Section 13:

HOLLY ENERGY PARTNERS, L.P.	 	 

	 	 	 	 	 
	By:

	 	HEP Logistics Holdings, L.P.,
	 	 
	 

	 	its General Partner	 	 
	 
	 	 	 	 
	By:

	 	Holly Logistic Services, L.L.C.,	 	 
	 

	 	its General Partner	 	 

	 	 	 	 	 
	 	 	 
	By:  	/s/ David G. Blair
 	 	 
	 	David G. Blair 	 	 
	 	President 	 	 
	 
	ACKNOWLEDGED AND AGREED

FOR PURPOSES OF Section 13:

HOLLY ENERGY PARTNERS-OPERATING, L.P.

 	 	 
	By:  	/s/ David G. Blair
 	 	 
	 	David G. Blair 	 	 
	 	Senior Vice President 	 	 
	 

Signature Page 2 of 2 to the Loading Rack Throughput Agreement (Lovington)

 

 

SCHEDULE I

LOADING RACK TARIFF

Loading
Rack Tariff

$0.35
per barrel

Schedule I

 

 

SCHEDULE II

ASSUMED OPEX

Assumed
OPEX

$250,000.00

Schedule IIexv10w3

Exhibit
10.3

EXECUTION VERSION

 

FOURTH AMENDED AND RESTATED OMNIBUS AGREEMENT

among

HOLLY CORPORATION

HOLLY ENERGY PARTNERS, L.P.

and

CERTAIN OF THEIR RESPECTIVE SUBSIDIARIES

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page
	Article I Definitions
	 	 	2	 
	1.1 Definitions
	 	 	2	 
	 
	 	 	 	 
	Article II Business Opportunities
	 	 	8	 
	2.1 Restricted Businesses
	 	 	8	 
	2.2 Permitted Exceptions
	 	 	9	 
	2.3 Procedures
	 	 	9	 
	2.4 Scope of Prohibition
	 	 	11	 
	2.5 Enforcement
	 	 	11	 
	2.6 Limitation on Acquisitions of Subject Assets
by Partnership Group Members
	 	 	12	 
	 
	 	 	 	 
	Article III Indemnification
	 	 	12	 
	3.1 Environmental Indemnification
	 	 	12	 
	3.2 Limitations Regarding Environmental Indemnification
	 	 	14	 
	3.3 Right of Way Indemnification
	 	 	14	 
	3.4 Additional Indemnification
	 	 	15	 
	3.5 Indemnification Procedures
	 	 	15	 
	3.6 Limitation on Indemnification Obligations
	 	 	17	 
	3.7 Exclusion from Indemnification
	 	 	17	 
	 
	 	 	 	 
	Article IV General and Administrative Expenses
	 	 	17	 
	4.1 General
	 	 	17	 
	 
	 	 	 	 
	Article V Right of First Refusal
	 	 	18	 
	5.1 Holly Right of First Refusal: Prohibition
on Transfer of Refinery Related Assets
	 	 	18	 
	5.2 Procedures
	 	 	19	 
	 
	 	 	 	 
	Article VI Holly Purchase Option
	 	 	21	 
	6.1 Option to Purchase Tulsa Transferred Assets
	 	 	21	 
	 
	 	 	 	 
	Article VII Miscellaneous
	 	 	21	 
	7.1 Choice of Law
	 	 	21	 
	7.2 Arbitration Provision
	 	 	21	 
	7.3 Notice.
	 	 	22	 
	7.4 Entire Agreement
	 	 	23	 
	7.5 Termination of Article II
	 	 	23	 
	7.6 Amendment or Modification
	 	 	23	 
	7.7 Assignment
	 	 	24	 
	7.8 Additional Partnership Entities
	 	 	24	 
	7.9 Counterparts
	 	 	24	 
	7.10 Severability
	 	 	24	 
	7.11 Further Assurances
	 	 	24	 
	7.12 Rights of Limited Partners
	 	 	24	 
	7.13 Headings
	 	 	24	 

i

 

	 	 	 	 	 
	 	 	 	Page
	7.14 UNEV Option Agreement
	 	 	24	 
	7.15 Limitation of Damages
	 	 	24	 

ii

 

FOURTH AMENDED AND RESTATED

OMNIBUS AGREEMENT

     THIS FOURTH AMENDED AND RESTATED OMNIBUS AGREEMENT is being entered into on March 31, 2010
(the “Agreement”), by and among Holly Corporation, a Delaware corporation
(“Holly”), the other Holly Entities (as defined herein) listed on the signature pages
hereto, Holly Energy Partners, L.P., a Delaware limited partnership (the “Partnership”),
and the other Partnership Entities (as defined herein) listed on the signature pages hereto, and
amends and restates in its entirety the Third Amended and Restated Omnibus Agreement entered into
on December 1, 2009 (as amended, the “Third Amended Omnibus Agreement”) among Holly, Navajo
Pipeline Co., L.P., a Delaware limited partnership (“Navajo Pipeline”), Holly Logistic
Services, L.L.C., a Delaware limited liability company (“Holly GP”), HEP Logistics
Holdings, L.P., a Delaware limited partnership (the “General Partner”), the Partnership,
HEP Logistics GP, L.L.C., a Delaware limited liability company (the “OLP GP”), and Holly
Energy Partners — Operating, L.P., a Delaware limited partnership (the “Operating
Partnership”) and the other Holly Entities and Partnership Entities signatory thereto.

R E C I T A L S:

          WHEREAS, the Parties entered into an Omnibus Agreement on July 13, 2004 (as amended, the
“Original Omnibus Agreement”) to evidence their agreement, as more fully set forth in
Article II, with respect to those business opportunities that the Holly Entities and Holly
GP would not engage in, directly or indirectly, during the term of the Original Omnibus Agreement
unless the Partnership declined to engage in any such business opportunity for its own account;

          WHEREAS, the Parties entered into the Original Omnibus Agreement to evidence their agreement,
as more fully set forth in Article III, with respect to certain indemnification obligations
of the Parties to each other;

          WHEREAS, the Parties entered into the Original Omnibus Agreement to evidence their agreement,
as more fully set forth in Article IV, with respect to the amount to be paid by the
Partnership for the general and administrative services to be performed by Holly and its Affiliates
(as defined herein) for and on behalf of the Partnership Entities and their Subsidiaries;

          WHEREAS, the Parties entered into the Original Omnibus Agreement to evidence their agreement,
as more fully set forth in Article V, with respect to Holly’s right of first refusal
relating to the Assets (as defined herein);

          WHEREAS, in connection with that certain LLC Interest Purchase Agreement dated as of June 1,
2009, by and among Holly, Navajo Pipeline and the Operating Partnership, pursuant to which Navajo
Pipeline transferred and conveyed to the Operating Partnership, and the Operating Partnership has
acquired, all of the limited liability company interests of Lovington-Artesia, L.L.C., the entity
that owns the 16” Lovington/Artesia Intermediate Pipeline (as defined herein), the Parties amended
and restated the Original Omnibus Agreement and

1

 

entered into the First Amended and Restated Omnibus Agreement (the “First Amended Omnibus
Agreement”);

          WHEREAS, in connection with that certain Asset Purchase Agreement dated as of August 1, 2009,
by and between Holly Refining & Marketing — Tulsa LLC (“Holly Tulsa”) and HEP Tulsa LLC
(“HEP Tulsa”), pursuant to which Holly Tulsa transferred and conveyed to HEP Tulsa, and HEP
Tulsa acquired, the Tulsa Transferred Assets (as defined herein), the Parties amended and restated
the First Amended Omnibus Agreement and entered into the Second Amended and Restated Omnibus
Agreement (the “Second Amended Omnibus Agreement”);

          WHEREAS, in connection with (i) that certain Asset Sale and Purchase Agreement dated as of
October 19, 2009, by and among Holly Tulsa, HEP Tulsa and Sinclair Tulsa Refining Company
(“Sinclair”), pursuant to which HEP Tulsa acquired the Sinclair Transferred Assets (as
defined herein), (ii) that certain Asset Purchase Agreement dated as of December 1, 2009, by and
among Holly, Navajo Pipeline and HEP Pipeline L.L.C., pursuant to which Navajo Pipeline agreed to
transfer and convey to HEP Pipeline L.L.C., and HEP Pipeline L.L.C. agreed to acquire, the Beeson
Pipeline (as defined herein), and (iii) that certain LLC Interest Purchase Agreement by and among
Holly, Navajo Pipeline and the Operating Partnership, pursuant to which Navajo Pipeline agreed to
transfer and convey to the Operating Partnership, and the Operating Partnership agreed to acquire,
all of the limited liability company interests of Roadrunner Pipeline, L.L.C., the entity that owns
the Roadrunner Pipeline (as defined herein), the Parties amended and restated the Second Amended
Omnibus Agreement and entered into the Third Amended Omnibus Agreement; and

          WHEREAS, in connection with that certain LLC Interest Purchase Agreement dated as of March 31,
2010, by and among Holly, Lea Refining Company, Holly Tulsa, HEP Refining, L.L.C. (“HEP
Refining”) and HEP Tulsa (the “March 2010 Drop Down LLC Interest Purchase Agreement”),
the Parties desire to amend and restate the Third Amended Omnibus Agreement as provided herein.

     In consideration of the premises and the covenants, conditions, and agreements contained
herein, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties hereto hereby agree as follows:

ARTICLE I

Definitions

     1.1 Definitions.

     As used in this Agreement, the following terms shall have the respective meanings set forth
below:

     “8” and 10” Lovington/Artesia Intermediate Pipelines” means the 8-inch pipeline
running from Lovington, New Mexico to Artesia, New Mexico and the 10-inch pipeline running from
Lovington, New Mexico to Artesia, New Mexico, each owned by Navajo Pipeline.

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     “16” Lovington/Artesia Intermediate Pipeline” means the 16-inch pipeline running from
Lovington, New Mexico to Artesia, New Mexico, owned by Lovington-Artesia, L.L.C.

     “2004 Product Pipelines, Terminal and Related Assets” means the assets transferred
under the July 13, 2004 Contribution, Conveyance and Assumption Agreement at the time of the
Partnership’s initial public offering.

     “2008 Crude Pipelines, Tanks and Related Assets” means the Drop-Down Assets as defined
in the Purchase and Sale Agreement, dated February 25, 2008, by and among Holly, Navajo Pipeline,
Woods Cross Refining Company, L.L.C., a Delaware limited liability company, and Navajo Refining
Company, L.L.C., as the seller parties, and the Partnership, the Operating Partnership, HEP Woods
Cross, L.L.C., a Delaware limited liability company, and HEP Pipeline, L.L.C., a Delaware limited
liability company, as the buyer parties.

     “Acquisition Proposal” is defined in Section 5.2(a).

     “Additional Tulsa East Assets” means the Transferred Tulsa East Assets as defined in
the March 2010 Drop Down LLC Interest Purchase Agreement.

     “Additional Lovington Assets” means the Transferred Lovington Assets as defined in the
March 2010 Drop Down LLC Interest Purchase Agreement.

     “Administrative Fee” is defined in Section 4.1(a).

     “Affiliate” is defined in the Partnership Agreement.

     “Agreement” is defined in the introduction to this Agreement.

     “Applicable Law” means any applicable statute, law, regulation, ordinance, rule,
judgment, rule of law, order, decree, permit, approval, concession, grant, franchise, license,
agreement, requirement, or other governmental restriction or any similar form of decision of, or
any provision or condition of any permit, license or other operating authorization issued under any
of the foregoing by, or any determination by any Governmental Authority having or asserting
jurisdiction over the matter or matters in question, whether now or hereafter in effect and in each
case as amended (including, without limitation, all of the terms and provisions of the common law
of such Governmental Authority), as interpreted and enforced at the time in question.

     “Arbitrable Dispute” means any and all disputes, Claims, controversies and other
matters in question between any of the Partnership Entities, on the one hand, and any of the Holly
Entities, on the other hand, arising out of or relating to this Agreement or the alleged breach
hereof, or in any way relating to the subject matter of this Agreement regardless of whether (a)
allegedly extra-contractual in nature, (b) sounding in contract, tort or otherwise, (c) provided
for by Applicable Law or otherwise or (d) seeking damages or any other relief, whether at law, in
equity or otherwise.

     “Assets” means the Sinclair Transferred Assets and all of the following assets
conveyed, contributed, or otherwise transferred by the Holly Entities to the Partnership Entities:
(i) the 2004

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Product Pipelines, Terminal and Related Assets, (ii) the 8” and 10” Lovington/Artesia
Intermediate Pipelines, (iii) the 2008 Crude Pipelines, Tanks and Related Assets, (iv) the 16”
Lovington/Artesia Intermediate Pipeline, (v) the Tulsa Transferred Assets, (vi) the Beeson
Pipeline, (vii) the Roadrunner Pipeline, (viii) the Additional Lovington Assets, and (ix) the
Additional Tulsa East Assets.

     “Beeson Pipeline” means the 8” crude oil pipeline extending from Beeson station to
Lovington, New Mexico, owned by HEP Pipeline, L.L.C.

     “Change of Control” means, with respect to any Person (the “Applicable
Person”), any of the following events: (a) any sale, lease, exchange, or other transfer (in one
transaction or a series of related transactions) of all or substantially all of the Applicable
Person’s assets to any other Person unless immediately following such sale, lease, exchange, or
other transfer such assets are owned, directly or indirectly, by the Applicable Person; (b) the
consolidation or merger of the Applicable Person with or into another Person pursuant to a
transaction in which the outstanding Voting Securities of the Applicable Person are changed into or
exchanged for cash, securities, or other property, other than any such transaction where (i) the
outstanding Voting Securities of the Applicable Person are changed into or exchanged for Voting
Securities of the surviving Person or its parent and (ii) the holders of the Voting Securities of
the Applicable Person immediately prior to such transaction own, directly or indirectly, not less
than a majority of the Voting Securities of the surviving Person or its parent immediately after
such transaction; and (c) a “person” or “group” (within the meaning of Sections 13(d) or 14(d)(2)
of the Exchange Act) (in the case of Holly, other than a group consisting of some of all of the
current control persons of Holly), being or becoming the “beneficial owner” (as defined in Rules
13d-3 and 13d-5 under the Exchange Act) of more than 50% of all of the then outstanding Voting
Securities of the Applicable Person, except in a merger or consolidation that would not constitute
a Change of Control under clause (b) above.

     “Claim” means any existing or threatened future claim, demand, suit, action,
investigation, proceeding, governmental action or cause of action of any kind or character (in each
case, whether civil, criminal, investigative or administrative), known or unknown, under any
theory, including those based on theories of contract, tort, statutory liability, strict liability,
employer liability, premises liability, products liability, breach of warranty or malpractice.

     “Claimant” is defined in Section 7.2.

     “Closing Date” means the date of the closing of the Partnership’s initial public
offering of Common Units. For purposes of Article III, Closing Date shall mean, with
respect to a group of Assets (e.g. the 8” and 10” Lovington/Artesia Intermediate Pipelines), the
effective date of the purchase of such assets or the stock, partnership interests or membership
interests of the entity that owned such Assets, by a Partnership Entity.

     “Common Units” is defined in the Partnership Agreement.

     “Contribution Agreement” means that certain Contribution, Conveyance and Assumption
Agreement, dated as of July 13, 2004, among Holly, Navajo Pipeline, Holly GP, the General Partner,
the Partnership, the OLP GP, the Operating Partnership and certain other parties,

4

 

together with the additional conveyance documents and instruments contemplated or referenced
thereunder.

     “control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of a Person, whether through ownership of voting
securities, by contract, or otherwise.

     “Covered Environmental Losses” is defined in Section 3.1.

     “Disposition Notice” is defined in Section 5.2(a).

     “Environmental Laws” means all federal, state, and local laws, statutes, rules,
regulations, orders, and ordinances, now or hereafter in effect, relating to protection of the
environment including, without limitation, the federal Comprehensive Environmental Response,
Compensation, and Liability Act, the Superfund Amendments Reauthorization Act, the Resource
Conservation and Recovery Act, the Clean Air Act, the Federal Water Pollution Control Act, the
Toxic Substances Control Act, the Oil Pollution Act, the Safe Drinking Water Act, the Hazardous
Materials Transportation Act, and other environmental conservation and protection laws, each as
amended from time to time.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “First Amended Omnibus Agreement” is defined in the introduction to this Agreement.

     “First ROFR Acceptance Deadline” is defined in Section 5.2(a).

     “General Partner” is defined in the introduction to this Agreement.

     “Governmental Authority” means any federal, state, local or foreign government or any
provincial, departmental or other political subdivision thereof, or any entity, body or authority
exercising executive, legislative, judicial, regulatory, administrative or other governmental
functions or any court, department, commission, board, bureau, agency, instrumentality or
administrative body of any of the foregoing.

     “Hazardous Substance” means (a) any substance that is designated, defined, or
classified as a hazardous waste, hazardous material, pollutant, contaminant, or toxic or hazardous
substance, or that is otherwise regulated under any Environmental Law, including, without
limitation, any hazardous substance as defined under the Comprehensive Environmental Response,
Compensation, and Liability Act, and (b) petroleum, crude oil, gasoline, natural gas, fuel oil,
motor oil, waste oil, diesel fuel, jet fuel, and other refined petroleum hydrocarbons.

     “Holly” is defined in the introduction to this Agreement.

     “Holly Entities” means Holly and each other entity listed on the signature pages
hereto as Holly Entity.

     “Holly Entity” means any of the Holly Entities.

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     “Holly Group” means the Holly Entities and any Person controlled, directly or
indirectly, by Holly other than the Partnership Entities.

     “Holly Group Member” means any member of the Holly Group.

     “Indemnified Party” means the Partnership Entities or the Holly Entities, as the case
may be, in their capacity as the parties entitled to indemnification in accordance with Article
III.

     “Indemnifying Party” means either the Partnership Entities or the Holly Entities, as
the case may be, in their capacity as the parties from whom indemnification may be required in
accordance with Article III, including Section 3.6.

     “Initial Tank Inspection” is defined in Section 3.1(c).

     “Initial Tank Inspection Period” is defined in Section 3.1(c).

     “Limited Partner” is defined in the Partnership Agreement.

     “March 2010 Drop Down LLC Interest Purchase Agreement” is defined in the recitals to
this Agreement.

     “Navajo Pipeline” is defined in the introduction to this Agreement.

     “Offer” is defined in Section 2.3(b)(i).

     “Offer Price” is defined in Section 5.2(a).

     “OLP GP” is defined in the introduction to this Agreement.

     “Operating Partnership” is defined in the introduction to this Agreement.

     “Original Omnibus Agreement” is defined in the recitals to this Agreement.

     “Partnership” is defined in the introduction to this Agreement.

     “Partnership Agreement” means the First Amended and Restated Agreement of Limited
Partnership of Holly Energy Partners, L.P., dated July 13, 2004, as amended by Amendment No. 1 to
the First Amended and Restated Agreement of Limited Partnership of Holly Energy Partners, L.P.,
dated February 28, 2005, as amended by Amendment No. 2 to the First Amended and Restated Agreement
of Limited Partnership of Holly Energy Partners, L.P., dated July 6, 2005, as amended by Amendment
No. 3 to the First Amended and Restated Agreement of Limited Partnership of Holly Energy Partners,
L.P., dated April 11, 2008, as such agreement is in effect on the date of this Agreement. No
amendment or modification to the Partnership Agreement subsequent to the date of this Agreement
shall be given effect for the purposes of this Agreement unless consented to by each of the
Parties.

     “Partnership Entities” means the Partnership and each other entity listed on the
signature pages hereto as a Partnership Entity.

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     “Partnership Entity” means any of the Partnership Entities.

     “Partnership Group” means the Partnership Entities and any Subsidiary of any such
Person, treated as a single consolidated entity.

     “Partnership Group Member” means any member of the Partnership Group.

     “Party” means each of the entities listed on the signature page to this Agreement,
collectively the “Parties”.

     “Person” means an individual or a corporation, limited liability company, partnership,
joint venture, trust, unincorporated organization association, government agency or political
subdivision thereof or other entity.

     “Proposed Transferee” is defined in Section 5.2(a).

     “Prudent Industry Practice” means such practices, methods, acts, techniques, and
standards as are in effect at the time in question that are consistent with (a) the standards
generally followed by the United States pipeline and terminalling industries or (b) such higher
standards as may be applied or followed by the Holly Entities in the performance of similar tasks
or projects, or by the Partnership Entities in the performance of similar tasks or projects.

     “Purchase Option Agreement” has the meaning set forth in the Asset Purchase Agreement,
dated August 1, 2009, between Holly Refining & Marketing — Tulsa LLC, a Delaware limited liability
company, as the seller, and HEP Tulsa LLC, a Delaware limited liability company, as the buyer.

     “Respondent” is defined in Section 7.2.

     “Restricted Businesses” is defined in Section 2.1.

     “Retained Assets” means the pipelines, terminals and other assets and investments
owned by any of the Holly Group Members on the date of the Contribution Agreement that were not
conveyed, contributed or otherwise transferred to the Partnership Entities pursuant to the
Contribution Agreement or otherwise.

     “Roadrunner Pipeline” means 16” crude oil pipeline extending from Slaughter station in
Texas to Lovington, New Mexico owned by Roadrunner Pipeline, L.L.C.

     “ROFR Acceptance Deadline” means the First ROFR Acceptance Deadline or the Second ROFR
Acceptance Deadline, as applicable.

     “Sale Assets” is defined in Section 5.2(a).

     “Second ROFR Acceptance Deadline” is defined in Section 5.2(a).

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     “Sinclair Transferred Assets” means the HEP Tulsa Assets as defined in the Asset Sale
and Purchase Agreement dated October 19, 2009 by and among Holly Tulsa, HEP Tulsa and Sinclair.

     “Subject Assets” is defined in Section 2.2(c).

     “Subsidiary” means, with respect to any Person, (a) a corporation of which more than
50% of the voting power of shares entitled (without regard to the occurrence of any contingency) to
vote in the election of directors or other governing body of such corporation is owned, directly or
indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such
Person or a combination thereof, (b) a partnership (whether general or limited) in which such
Person or a Subsidiary of such Person is, at the date of determination, a general or limited
partner of such partnership, but only if more than 50% of the partnership interests of such
partnership (considering all of the partnership interests of the partnership as a single class) is
owned, directly or indirectly, at the date of determination, by such Person, by one or more
Subsidiaries of such Person, or a combination thereof, or (c) any other Person (other than a
corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a
combination thereof, directly or indirectly, at the date of determination, has (i) at least a
majority ownership interest or (ii) the power to elect or direct the election of a majority of the
directors or other governing body of such Person.

     “Toxic Tort” means a claim or cause of action arising from personal injury or property
damage incurred by the plaintiff that is alleged to have been caused by exposure to, or
contamination by, Hazardous Substances that have been released into the environment by or as a
result of the actions or omissions of the defendant.

     “Tulsa Transferred Assets” means the Transferred Assets as defined in the Asset
Purchase Agreement, dated August 1, 2009, between Holly Refining & Marketing — Tulsa LLC, a
Delaware limited liability company, as the seller, and HEP Tulsa LLC, a Delaware limited liability
company, as the buyer.

     “Transfer” including the correlative terms “Transferring” or
“Transferred” means any direct or indirect transfer, assignment, sale, gift, pledge,
hypothecation or other encumbrance, or any other disposition (whether voluntary, involuntary or by
operation of law) of the Assets.

     “Transferred Tanks” is defined in Section 3.1(a)(iii).

     “Units” is defined in the Partnership Agreement.

     “Voting Securities” means securities of any class of a Person entitling the holders
thereof to vote on a regular basis in the election of members of the board of directors or other
governing body of such Person.

ARTICLE II

Business Opportunities

     2.1 Restricted Businesses. For so long as a Holly Group Member controls the Partnership, and
except as permitted by Section 2.2, Holly GP and each of the Holly Group

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Members shall be prohibited from engaging in or acquiring or investing in any business having
assets engaged in the following businesses (the “Restricted Businesses”): the ownership
and/or operation of crude oil pipelines or terminals, intermediate product pipelines or terminals,
refined products pipelines or terminals, truck racks or crude oil gathering systems in the
continental United States.

     2.2 Permitted Exceptions. Notwithstanding any provision of Section 2.1 to the
contrary, Holly GP and the Holly Group Members may engage in the following activities under the
following circumstances:

          (a) the ownership and/or operation of any of the Retained Assets (including replacements of
the Retained Assets);

          (b) any Restricted Business conducted by a Holly Group Member or Holly GP with the approval of
the General Partner;

          (c) the ownership and/or operation of any asset or group of related assets used in the
activities described in Section 2.1 that are acquired or constructed by a Holly Group
Member or Holly GP after the Closing Date (the “Subject Assets”) if, in the case of an
acquisition, the fair market value of the Subject Assets (as determined in good faith by the Board
of Directors of Holly), or, in the case of construction, the estimated construction cost of the
Subject Assets (as determined in good faith by the Board of Directors of Holly), is less than $5
million at the time of such acquisition or completion of construction, as the case may be;

          (d) the ownership and/or operation of any Subject Assets acquired by a Holly Group Member or
Holly GP after the Closing Date with a fair market value (as determined in good faith by the Board
of Directors of Holly) equal to or greater than $5 million at the time of the acquisition;
provided, the Partnership has been offered the opportunity to purchase the Subject Assets
in accordance with Section 2.3 and the Partnership has elected not to purchase the Subject
Assets; and

          (e) the ownership and/or operation of any Subject Assets constructed by a Holly Group Member
or Holly GP after the Closing Date with a construction cost (as determined in good faith by the
Board of Directors of Holly) equal to or greater than $5 million at the time of completion of
construction that the Partnership has been offered the opportunity to purchase in accordance with
Section 2.3 and the Partnership has elected not to purchase.

     2.3 Procedures.

          (a) In the event that Holly GP or a Holly Group Member becomes aware of an opportunity to
acquire Subject Assets with a fair market value (as determined in good faith by the Board of
Directors of Holly) equal to or greater than $5 million, then subject to Section 2.3(b),
then as soon as practicable, Holly GP or such Holly Group Member shall notify the General Partner
of such opportunity and deliver to the General Partner, or provide the General Partner access to,
all information prepared by or on behalf of, or material information submitted or delivered to,
Holly GP or such Holly Group Member relating to such potential transaction. As soon as practicable,
but in any event within 30 days after receipt of such notification and information, the General
Partner, on behalf of the Partnership, shall notify Holly

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GP or the
Holly GP or the Holly Group Member that either
(i) the General Partner, on behalf of the Partnership, has elected not to cause a Partnership Group
Member to pursue the opportunity to purchase the Subject Assets, or (ii) the General Partner, on
behalf of the Partnership, has elected to cause a Partnership Group Member to pursue the
opportunity to purchase the Subject Assets. If, at any time, the General Partner abandons such
opportunity (as evidenced in writing by the General Partner following the request of Holly GP or
the Holly Group Member), Holly GP or the Holly Group Member under this Section 2.3(a) may
pursue such opportunity. Any Subject Assets which are permitted to be acquired by Holly GP or a
Holly Group Member must be so acquired (i) within 12 months of the later to occur of (A) the date
that Holly GP or the Holly Group Member becomes able to pursue such acquisition in accordance with
the provisions of this Section 2.3(a), and (B) the date upon which all required
governmental approvals to consummate such acquisition have been obtained, and (ii) on terms not
materially more favorable to Holly GP or the Holly Group Member than were offered to the
Partnership. If either of these conditions are not satisfied, the opportunity must be reoffered to
the Partnership in accordance with this Section 2.3(a).

          (b) Notwithstanding Section 2.3(a), in the event that (i) Holly GP or a Holly Group
Member becomes aware of an opportunity to make an acquisition that includes both Subject Assets and
assets that are not Subject Assets and the Subject Assets have a fair market value (as determined
in good faith by the Board of Directors of Holly) equal to or greater than $5 million but comprise
less than half of the fair market value (as determined in good faith by the Board of Directors of
Holly) of the total assets being considered for acquisition or (ii) Holly GP or a Holly Group
Member desires to construct Subject Assets with an estimated construction cost (as determined in
good faith by the Board of Directors of Holly) equal to or greater than $5 million, then Holly GP
or the Holly Group Member may make such acquisition without first offering the opportunity to the
Partnership or may construct such Subject Assets as long as it complies with the following
procedures:

               (i) Within 90 days after the consummation of the acquisition or the completion of construction
by Holly GP or a Holly Group Member of the Subject Assets, as the case may be, Holly GP or the
Holly Group Member shall notify the General Partner in writing of such acquisition or construction
and offer the Partnership Group the opportunity to purchase such Subject Assets in accordance with
this Section 2.3(b) (the “Offer”). The Offer shall set forth the terms relating to
the purchase of the Subject Assets and, if Holly GP or any Holly Group Member desires to utilize
the Subject Assets, the Offer will also include the
commercially reasonable terms on which the Partnership Group will provide services to Holly GP
or the Holly Group Member to enable Holly GP or the Holly Group Member to utilize the Subject
Assets. As soon as practicable, but in any event within 30 days after receipt of such written
notification, the General Partner shall notify Holly GP or the Holly Group Member in writing that
either (x) the General Partner has elected not to cause a Partnership Group Member to purchase the
Subject Assets, in which event Holly GP or the Holly Group Member shall be forever free to continue
to own or operate such Subject Assets, or (y) the General Partner has elected to cause a
Partnership Group Member to purchase the Subject Assets, in which event the following procedures
shall apply.

               (ii) If Holly GP or the Holly Group Member and the General Partner within 60 days after
receipt by the General Partner of the Offer are able to agree on the fair

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market value of the
Subject Assets that are subject to the Offer and the other terms of the Offer including, without
limitation, the terms, if any, on which the Partnership Group will provide services to Holly GP or
the Holly Group Member to enable it to utilize the Subject Assets, a Partnership Group Member shall
purchase the Subject Assets for the agreed upon fair market value as soon as commercially
practicable after such agreement has been reached and, if applicable, enter into an agreement with
Holly GP or the Holly Group Member to provide services in a manner consistent with the Offer.

               (iii) If Holly GP or the Holly Group Member and the General Partner are unable to agree within
60 days after receipt by the General Partner of the Offer on the fair market value of the Subject
Assets that are subject to the Offer or the other terms of the Offer including, if applicable, the
terms on which the Partnership Group will provide services to Holly GP or the Holly Group Member to
enable it to utilize the Subject Assets, Holly GP or the Holly Entity and the General Partner will
engage a mutually agreed upon investment banking firm to determine the fair market value of the
Subject Assets and/or the other terms on which the Partnership Group and Holly GP or the Holly
Group Member are unable to agree. Such investment banking firm will determine the fair market value
of the Subject Assets and/or the other terms on which the Partnership Group and Holly GP or the
Holly Group Member are unable to agree within 30 days of its engagement and furnish Holly GP or the
Holly Group Member and the General Partner its determination. The fees of the investment banking
firm will be split equally between Holly GP or the Holly Group Member and the Partnership Group.
Once the investment banking firm has submitted its determination of the fair market value of the
Subject Assets and/or the other terms on which the Partnership Group and Holly GP or the Holly
Group Member are unable to agree, the General Partner will have the right, but not the obligation,
to cause a Partnership Group Member to purchase the Subject Assets pursuant to the Offer as
modified by the determination of the investment banking firm. The Partnership Group will provide
written notice of its decision to Holly GP or the Holly Group Member within 30 days after the
investment banking firm has submitted its determination. Failure to provide such notice within
such 30-day period shall be deemed to constitute a decision not to purchase the Subject Assets. If
the General Partner elects to cause a Partnership Group Member to purchase the Subject Assets, then
the Partnership Group Member shall purchase the Subject Assets pursuant to the Offer as modified by
the determination of the investment banking firm as soon as commercially practicable after such
determination and, if applicable, enter into an agreement with Holly GP or the Holly Group Member
to provide services in a manner consistent with the Offer, as modified by the determination of the
investment banking firm, if applicable.

     2.4 Scope of Prohibition. Except as provided in this Article II and the Partnership
Agreement, Holly GP and each Holly Group Member shall be free to engage in any business activity,
including those that may be in direct competition with any Partnership Group Member.

     2.5 Enforcement. Holly GP and the Holly Group Members agree and acknowledge that the
Partnership Group does not have an adequate remedy at law for the breach by Holly GP and the Holly
Group of the covenants and agreements set forth in this Article II, and that any breach by
Holly GP or the Holly Group of the covenants and agreements set forth in this Article II
would result in irreparable injury to the Partnership Group. Holly GP and the Holly Group Members
further agree and acknowledge that any Partnership Group Member may, in addition to the other
remedies which may be available to the Partnership Group, file a suit in equity to enjoin

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Holly GP
and the Holly Group from such breach, and consent to the issuance of injunctive relief under this
Agreement.

     2.6 Limitation on Acquisitions of Subject Assets by Partnership Group Members.
Notwithstanding anything in this Agreement to the contrary, a Partnership Group Member who is not a
party to this Agreement is prohibited from acquiring Subject Assets. In the event the General
Partner desires a Partnership Group Member who is not a party to this Agreement to acquire any
Subject Assets, then the General Partner shall first cause such Partnership Group Member to become
a party to this Agreement.

ARTICLE III

Indemnification

     3.1 Environmental Indemnification.

          (a) Subject to Section 3.2, the Holly Entities shall indemnify, defend and hold
harmless the Partnership Entities for a period of 10 years after the Closing Date or, solely with
respect to the 2008 Crude Pipelines, Tanks and Related Assets, 15 years after the Closing Date, as
applicable, from and against environmental and Toxic Tort losses (including, without limitation,
economic losses, diminution in value suffered by third parties, and lost profits), damages,
injuries (including, without limitation, personal injury and death), liabilities, claims, demands,
causes of action, judgments, settlements, fines, penalties, costs, and expenses (including, without
limitation, court costs and reasonable attorney’s and expert’s fees) of any and every kind or
character, known or unknown, fixed or contingent, suffered or incurred by the Partnership Entities
or any third party to the extent arising out of:

               (i) any violation or correction of violation of Environmental Laws associated with the
ownership or operation of the Assets, or

               (ii) any event or condition associated with ownership or operation of the Assets (including,
without limitation, the presence of Hazardous Substances on, under, about or migrating to or from
the Assets or the disposal or release of Hazardous Substances generated by operation of the Assets
at non-Asset locations), including, without limitation, (A)
the cost and expense of any investigation, assessment, evaluation, monitoring, containment,
cleanup, repair, restoration, remediation, or other corrective action required or necessary under
Environmental Laws, (B) the cost or expense of the preparation and implementation of any closure,
remedial, corrective action, or other plans required or necessary under Environmental Laws, and (C)
the cost and expense for any environmental or Toxic Tort pre-trial, trial, or appellate legal or
litigation support work;

but only to the extent that such violation complained of under Section 3.1(a)(i) or such
events or conditions included under Section 3.1(a)(ii) occurred before the Closing Date
(collectively, “Covered Environmental Losses”); or

               (iii) the operation or ownership by Holly and its Affiliates of any assets not constituting
part of the Assets, including but not limited to underground pipelines retained by the Seller
Parties which serve the refineries in Lovington, New Mexico, Artesia, New Mexico and Woods Cross,
Utah or the tanks that are part of the 2008 Crude Pipelines, Tanks and Related

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Assets to the extent
not transferred to the Partnership Entities (the “Transferred Tanks”), except to the extent
arising out of the negligent acts or omissions or willful misconduct of a member of the Partnership
Entities.

          (b) To the extent that a good faith claim by the Partnership Entities for indemnification
under Section 3.1(a)(i) or Section 3.1(a)(ii) arises from events or conditions at
the Transferred Tanks or the soil immediately underneath the Transferred Tanks or the Transferred
Tanks’ secondary containment, and the Holly Entities refuse to provide such indemnification, then
the burden of proof shall be on the Holly Entities to demonstrate that the events or conditions
giving rise to the claim arose after the Closing Date.

          (c) The Holly Entities shall, during the period that commences on the Closing Date and ends
five (5) years thereafter (the “Initial Tank Inspection Period”), reimburse the Partnership
Entities for the actual costs associated with the first regularly scheduled API 653 inspection (the
“Initial Tank Inspections”) and the costs associated with the replacement of the tank
mixers on each of the Transferred Tanks after the Closing Date and any repairs required to be made
to the Transferred Tanks as a result of any discovery made during the Initial Tank Inspections;
provided, however, that (i) the Holly Entities shall not reimburse the Partnership
Entities with respect to the relocated crude oil Tank 437 in the Artesia refinery complex and the
new crude oil tank to replace crude oil Tank 439 in the Artesia refinery complex more particularly
described in the definition of 2008 Crude Pipelines, Tanks and Related Assets, and (ii) upon
expiration of the Initial Tank Inspection Period, all of the obligations of the Holly Entities
pursuant to this Section 3.1(c) shall terminate, except that the Initial Tank Inspection
Period shall be extended if, and only to the extent that (A) inaccessibility of the Transferred
Tanks during the Initial Tank Inspection Period caused the delay of an Initial Tank Inspection
originally scheduled to be preformed during
the Initial Tank Inspection Period, and (B) the Holly Entities received notice from the
Partnership Entities regarding such delay at the time it occurred.

          (d) The Partnership Entities shall indemnify, defend and hold harmless the Holly Entities from
and against environmental and Toxic Tort losses (including, without limitation, economic losses,
diminution in value and lost profits suffered by third parties), damages, injuries (including,
without limitation, personal injury and death), liabilities, claims, demands, causes of action,
judgments, settlements, fines, penalties, costs, and expenses (including, without limitation, court
costs and reasonable attorney’s and expert’s fees) of any and every kind or character, known or
unknown, fixed or contingent, suffered or incurred by the Holly Entities or any third party to the
extent arising out of:

               (i) any violation or correction of violation of Environmental Laws associated with the
operation of the Assets by a Person other than a Holly Entity or ownership and operation of the
Assets by a Person other than a Holly Entity, or

               (ii) any event or condition associated with the operation of the Assets by a Person other than
a Holly Entity or ownership and operation of the Assets by a Person other than a Holly Entity
(including, but not limited to, the presence of Hazardous Substances on, under, about or migrating
to or from the Assets or the disposal or release of Hazardous Substances generated by operation of
the Assets at non-Asset locations) except, where a Holly

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Entity is operating an Asset, to the
extent resulting from the negligent acts or omissions or willful misconduct of such Holly Entity
including, without limitation, (A) the cost and expense of any investigation, assessment,
evaluation, monitoring, containment, cleanup, repair, restoration, remediation, or other corrective
action required or necessary under Environmental Laws, (B) the cost or expense of the preparation
and implementation of any closure, remedial, corrective action, or other plans required or
necessary under Environmental Laws, and (C) the cost and expense for any environmental or Toxic
Tort pre-trial, trial, or appellate legal or litigation support work;

but only to the extent such violation complained of under Section 3.1(d)(i) or such events
or conditions included under Section 3.1(d)(ii) occurred after the Closing Date;
provided, however, that nothing stated above shall make the Partnership Entities
responsible for any post-Closing Date negligent actions or omissions or willful misconduct by the
Holly Entities.

          (e) Notwithstanding anything in this Agreement to the contrary, as used in Section
3.1(a) the definition of Assets shall not include the 16” Lovington/Artesia Intermediate
Pipeline, the Beeson Pipeline or the Roadrunner Pipeline.

     3.2 Limitations Regarding Environmental Indemnification. The aggregate liability of the Holly
Entities in respect of all Covered Environmental Losses under Section 3.1(a) shall not
exceed (1) with respect to Assets other than the 2008 Crude Pipelines, Tanks and Related Assets,
$15.0 million plus an additional $2.5
million in the case of Covered Environmental Losses related to the 8” and 10”
Lovington/Artesia Intermediate Pipelines (for clarity, the first $15,000,000 million limit would
apply to Covered Environmental Losses associated with the 8” and 10” Lovington/Artesia Intermediate
Pipelines and the 2004 Product Pipelines, Terminal and Related Assets, while the limit between
$15,000,000 and $17,500,00 would apply only to Covered Environmental Losses associated with the 8”
and 10” Lovington/Artesia Intermediate Pipelines) and (2) $7.5 million in the case of Covered
Environmental Losses related to the 2008 Crude Pipelines, Tanks and Related Assets. The Holly
Entities will not have any obligation under Section 3.1 with respect to any Assets until
the Covered Environmental Losses of the Partnership Entities exceed $200,000.

     3.3 Right of Way Indemnification. The Holly Entities shall indemnify, defend and hold
harmless the Partnership Entities from and against any losses, damages, liabilities, claims,
demands, causes of action, judgments, settlements, fines, penalties, costs, and expenses
(including, without limitation, court costs and reasonable attorney’s and expert’s fees) of any and
every kind or character, known or unknown, fixed or contingent, suffered or incurred by the
Partnership Entities to the extent arising out of (a) the failure of the applicable Partnership
Entity to be the owner of such valid and indefeasible easement rights or fee ownership interests in
and to the lands on which any pipeline or related pump station, tank farm or equipment conveyed or
contributed or otherwise Transferred (including by way of a Transfer of the ownership interest of a
Person or by operation of law) to the applicable Partnership Entity on the Closing Date is located
as of the Closing Date; (b) the failure of the applicable Partnership Entity to have the consents,
licenses and permits necessary to allow any such pipeline referred to in clause (a) of this
Section 3.3 to cross the roads, waterways, railroads and other areas upon which any such
pipeline is located as of the Closing Date; and (c) the cost of curing any condition set forth in
clause (a) or (b) above that does not allow any Asset to be operated in accordance with Prudent

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Industry Practice, to the extent that the Holly Entities are notified in writing of any of the
foregoing within 10 years after the Closing Date or, solely with respect to the 2008 Crude
Pipelines, Tanks and Related Assets, 15 years after the Closing Date, as applicable.

     3.4 Additional Indemnification.

          (a) In addition to and not in limitation of the indemnification provided under Section
3.1(a) and Section 3.3, the Holly Entities shall indemnify, defend, and hold harmless
the Partnership Entities from and against any losses, damages, liabilities, claims, demands, causes
of action, judgments, settlements, fines, penalties, costs, and expenses (including, without
limitation, court costs and reasonable attorney’s and expert’s fees) of any and every kind or
character, known or unknown, fixed or contingent, suffered or incurred by the Partnership Entities
to the extent arising out of (i) events and conditions associated with the operation of the Assets
occurring before the Closing Date (other than Covered Environmental Losses which are provided for
under Section 3.1 and Section 3.2) to the extent that the Holly Entities are
notified in writing of any of the foregoing within five years after the Closing Date, (ii) all
legal actions pending against the Holly Entities on July 13, 2004, (iii)
the completion of remediation projects at the Partnership’s El Paso, Albuquerque and Mountain
Home terminals that were ongoing or scheduled as of July 13, 2004, (iv) events and conditions
associated with the Retained Assets and whether occurring before or after the Closing Date, and (v)
all federal, state and local tax liabilities attributable to the operation or ownership of the
Assets prior to the Closing Date, including any such tax liabilities of the Holly Entities that may
result from the consummation of the formation transactions for the Partnership Entities and the
General Partner.

          (b) In addition to and not in limitation of the indemnification provided under Section
3.1(b) or the Partnership Agreement, the Partnership Entities shall indemnify, defend, and hold
harmless the Holly Entities from and against any losses, damages, liabilities, claims, demands,
causes of action, judgments, settlements, fines, penalties, costs, and expenses (including, without
limitation, court costs and reasonable attorney’s and expert’s fees) of any and every kind or
character, known or unknown, fixed or contingent, suffered or incurred by the Holly Entities to the
extent arising out of events and conditions associated with the operation of the Assets occurring
on or after the Closing Date (other than Covered Environmental Losses which are provided for under
Section 3.1 except, where a Holly Entity is operating an Asset, to the extent resulting
from the negligent acts or omissions or willful misconduct of such Holly Entity), unless such
indemnification would not be permitted under the Partnership Agreement by reason of one of the
provisos contained in Section 7.7(a) of the Partnership Agreement.

     3.5 Indemnification Procedures.

          (a) The Indemnified Party agrees that promptly after it becomes aware of facts giving rise to
a claim for indemnification under this Article III, it will provide notice thereof in
writing to the Indemnifying Party, specifying the nature of and specific basis for such claim.

          (b) The Indemnifying Party shall have the right to control all aspects of the defense of (and
any counterclaims with respect to) any claims brought against the Indemnified Party that are
covered by the indemnification under this Article III, including, without limitation,

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the selection of counsel, determination of whether to appeal any decision of any court and the settling
of any such matter or any issues relating thereto; provided, however, that no such
settlement shall be entered into without the consent of the Indemnified Party unless it includes a
full release of the Indemnified Party from such matter or issues, as the case may be.

          (c) The Indemnified Party agrees to cooperate fully with the Indemnifying Party, with respect
to all aspects of the defense of any claims covered by the indemnification under this Article
III, including, without limitation, the prompt furnishing to the Indemnifying Party of any
correspondence or other notice relating thereto that the Indemnified Party may receive, permitting
the name of the Indemnified Party to be utilized in connection with such defense, the making
available to the Indemnifying Party of any files, records or other information of the Indemnified
Party that the Indemnifying Party considers relevant to such defense and the making available to
the Indemnifying Party of any employees of the Indemnified Party; provided,
however, that in connection therewith the
Indemnifying Party agrees to use reasonable efforts to minimize the impact thereof on the
operations of the Indemnified Party and further agrees to maintain the confidentiality of all
files, records, and other information furnished by the Indemnified Party pursuant to this
Section 3.5. In no event shall the obligation of the Indemnified Party to cooperate with
the Indemnifying Party as set forth in the immediately preceding sentence be construed as imposing
upon the Indemnified Party an obligation to hire and pay for counsel in connection with the defense
of any claims covered by the indemnification set forth in this Article III;
provided, however, that the Indemnified Party may, at its own option, cost and
expense, hire and pay for counsel in connection with any such defense. The Indemnifying Party
agrees to keep any such counsel hired by the Indemnified Party informed as to the status of any
such defense, but the Indemnifying Party shall have the right to retain sole control over such
defense.

          (d) In determining the amount of any loss, cost, damage or expense for which the Indemnified
Party is entitled to indemnification under this Agreement, the gross amount of the indemnification
will be reduced by all amounts recovered by the Indemnified Party under contractual indemnities
(other than insurance policies) from third Persons. An Indemnified Party shall be obligated to
pursue all contractual indemnities that such Indemnified Party has with third Persons outside of
this Agreement, provided, however, if the Indemnified Party’s right to such
indemnification is assignable, the Indemnified Party may, in its sole discretion and in lieu of
pursuing such claim, elect to assign such indemnification claim to the Indemnifying Party to pursue
and shall reasonably cooperate with the Indemnifying Party (including, without limitation, making
its relevant books, records, officers, information and testimony reasonably available to the
Indemnifying Party) in the Indemnifying Party’s pursuit of such claim. In the event the
Indemnified Party recovers under a contractual indemnity from a third Person outside of this
Agreement, the amount recovered, less the reasonable out-of-pocket fees and expenses incurred by
the Indemnified Party in recovering such amounts, shall reduce the amount such Indemnified Party
may recover under this Article III and if the Indemnified Party receives any such amounts
subsequent to an indemnification payment by the Indemnifying Party in respect of such losses, then
such Indemnified Party shall promptly reimburse the Indemnifying Party for any payment made or
expense incurred by such Indemnifying Party in connection with providing such indemnification
payment up to the amount so received by the Indemnified Party.

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          (e) The date on which notification of a claim for indemnification is received by the
Indemnifying Party shall determine whether such claim is timely made.

     3.6 Limitation on Indemnification Obligations.

          (a) Notwithstanding anything in this Agreement to the contrary, when referring to the
indemnification obligations of the Holly Entities in Article III, the definition of Holly
Entities shall be deemed to mean solely (i) the Holly Entity or Holly Entities that own or operate,
or owned or operated immediately prior to the transfer to the Partnership Entities, the Retained
Asset, Asset or other property in question with respect to which indemnification is sought by
reason of such Holly Entity’s or Holly Entities’ ownership or operation of the Retained Asset,
Asset or other property in question or that is responsible for causing such loss, damage, injury,
judgment, claim, cost,
expense or other liability suffered or incurred by the Partnership Entities for which it is
entitled to indemnification under Article III and (ii) Holly.

          (b) Notwithstanding anything in this Agreement to the contrary, when referring to the
indemnification obligations of the Partnership Entities in Article III, the definition of
Partnership Entities shall be deemed to mean solely (i) the Partnership Entity or Partnership
Entities that own or operate, or owned or operated, the Asset or other property in Partnership
Entity’s or Partnership Group Entities’ ownership or operation of the Asset or other property in
question or that is responsible for causing such loss, damage, injury, judgment, claim, cost,
expense or other liability suffered or incurred by the Holly Entities for which they are entitled
to indemnification under Article III, (ii) the Partnership and (iii) the Operating
Partnership.

     3.7 Exclusion from Indemnification. Notwithstanding anything in this Agreement to the
contrary, as used in Article III the definition of Assets shall not include the Tulsa
Transferred Assets, the Sinclair Transferred Assets or the Additional Tulsa East Assets, though the
parties hereto acknowledge the environmental indemnity provided among certain of the Holly Entities
and HEP Entities with respect to the Sinclair Transferred Assets and the Additional Tulsa East
Assets contained in the First Amended and Restated Pipelines, Tankage and Loading Rack Throughput
Agreement (Tulsa East) dated March 31, 2010 by and between Holly Tulsa and Holly Energy Storage —
Tulsa LLC.

ARTICLE IV

General and Administrative Expenses

     4.1 General

          (a) The Partnership will pay Holly an administrative fee (the “Administrative Fee”) in
the amount set forth on Schedule I to this Agreement, payable in equal quarterly
installments, for the provision by Holly and its Affiliates for the Partnership Group’s benefit of
all the general and administrative services that Holly and its Affiliates have traditionally
provided in connection with the Assets including, without limitation, the general and
administrative services listed on Schedule I to this Agreement. The General Partner may
agree on behalf of the Partnership to increases in the Administrative Fee in connection with

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expansions of the operations of the Partnership Group through the acquisition or construction of
new assets or businesses.

          (b) At the end of each year, the Partnership will have the right to submit to Holly a proposal
to reduce the amount of the Administrative Fee for that year if the Partnership believes, in good
faith, that the general and administrative services performed by Holly and its Affiliates for the
benefit of the Partnership Group for the year in question do not justify payment of the full
Administrative Fee for that year. If the Partnership submits such a proposal to Holly, Holly
agrees that it will negotiate in good faith with the Partnership to determine if the Administrative
Fee for that year should be reduced and, if so, by how much.

          (c) The Administrative Fee shall not include and the Partnership Group shall reimburse Holly
and its Affiliates for:

               (i) salaries of employees of Holly GP, to the extent, but only to the extent, such employees
perform services for the Partnership Group;

               (ii) the cost of employee benefits relating to employees of Holly GP, such as 401(k), pension,
and health insurance benefits, to the extent, but only to the extent, such employees perform
services for the Partnership Group; and

               (iii) all sales, use, excise, value added or similar taxes, if any, that may be applicable
from time to time in respect of the services provided by the Holly and its Affiliates to the
Partnership pursuant to Section 4.1(a).

          (d) Either Holly, on the one hand, or the Partnership, on the other hand, may terminate this
Article IV, by providing the other with written notice of its election to do so at least
six months prior to the proposed date of termination.

ARTICLE V

Right of First Refusal

     5.1 Holly Right of First Refusal: Prohibition on Transfer of Refinery Related Assets.

          (a) The Partnership Entities hereby grant to Holly a right of first refusal on any proposed
Transfer (other than a grant of a security interest to a bona fide third-party lender or a Transfer
to another Partnership Group Member) of the Assets that serve the Holly Entities’ refineries.

          (b) The Partnership Entities are prohibited from Transferring any of the Assets that serve the
Holly Entities’ refineries to a Partnership Group Member that is not a party to this Agreement. In
the event the Partnership Entities wish to Transfer any of the Assets that serve the Holly
Entities’ refineries to a Partnership Group Member that is not a party to this Agreement, they
shall first cause the proposed transferee Partnership Group Member to become a party to this
Agreement.

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          (c) The Parties acknowledge that all potential Transfers of Sale Assets pursuant to this
Article V are subject to obtaining any and all required written consents of governmental
authorities and other third parties and to the terms of all existing agreements in respect of the
Sale Assets.

          (d) Notwithstanding anything in this Agreement to the contrary, as used in Article V
the definition of Assets shall not include the Tulsa Transferred Assets.

     5.2 Procedures.

          (a) If a Partnership Entity proposes to Transfer any of the Assets that serve the Holly
Entities’ refineries to any Person pursuant to a bona fide third-party offer (an “Acquisition
Proposal”), then the Partnership shall promptly give written notice (a “Disposition
Notice”) thereof to Holly. The Disposition Notice shall set forth the following information in
respect of the proposed Transfer: the name and address of the prospective acquiror (the
“Proposed Transferee”), the Assets subject to the Acquisition Proposal (the “Sale
Assets”), the purchase price offered by such Proposed Transferee (the “Offer Price”),
reasonable detail concerning any non-cash portion of the proposed consideration, if any, to allow
Holly to reasonably determine the fair market value of such non-cash consideration, the Partnership
Entities’ estimate of the fair market value of any non-cash consideration and all other material
terms and conditions of the Acquisition Proposal that are then known to the Partnership Entities.
To the extent the Proposed Transferee’s offer consists of consideration other than cash (or in
addition to cash) the Offer Price shall be deemed equal to the amount of any such cash plus the
fair market value of such non-cash consideration. In the event Holly and the Partnership Entities
agree as to the fair market value of any non-cash consideration, Holly will provide written notice
of its decision regarding the exercise of its right of first refusal to purchase the Sale Assets
within 30 days of its receipt of the Disposition Notice (the “First ROFR Acceptance
Deadline”). Failure to provide such notice within such 30-day period shall be deemed to
constitute a decision not to purchase the Sale Assets. In the event (i) Holly’s determination of
the fair market value of any non-cash consideration described in the Disposition Notice (to be
determined by Holly within 30 days of receipt of such Disposition Notice) is less than the fair
market value of such consideration as determined by the Partnership Entities in the Disposition
Notice and (ii) Holly and the Partnership Entities are unable to mutually agree upon the fair
market value of such non-cash consideration within 30 days after Holly notifies the Partnership
Entities of its determination thereof, the Partnership Entities and Holly shall engage a
mutually-agreed-upon investment banking firm to determine the fair market value of the non-cash
consideration. Such investment banking firm shall be instructed to return its decision within 30
days after all material information is submitted thereto, which decision shall be final. The fees
of the investment banking firm will be split equally between Holly and the Partnership Entities.
Holly will provide written notice of its decision regarding the exercise of its right of first
refusal to purchase the Sale Assets to the Partnership Entities within 30 days after the investment
banking firm has submitted its determination (the “Second ROFR Acceptance Deadline”).
Failure to provide such notice within such 30-day period shall be deemed to constitute a decision
by Holly not to purchase the Sale Assets. If Holly fails to exercise a right during any applicable
period set forth in this Section 5.2(a), Holly shall be deemed to have waived its rights
with respect to such proposed disposition of the Sale Assets, but not with respect to any future
offer of Assets.

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          (b) If Holly chooses to exercise its right of first refusal to purchase the Sale Assets under
Section 5.2(a), Holly and the Partnership Entities shall enter into a purchase and sale
agreement for the Sale Assets which shall include the following terms:

               (i) Holly will agree to deliver cash for the Offer Price (or any other consideration agreed to
by Holly and the Partnership Entities (each in their sole discretion));

               (ii) the Partnership Entities will represent that they have good and indefeasible title to the
Sale Assets, subject to all recorded and unrecorded matters and all physical conditions and other
matters in existence on the closing date for the purchase of the Sale Assets, plus any other such
matters as Holly may approve, which approval will not be unreasonably withheld. If Holly desires to
obtain any title insurance with respect to the Sale Assets, the full cost and expense of obtaining
the same (including but not limited to the cost of title examination, document duplication and
policy premium) shall be borne by Holly;

               (iii) the Partnership Entities will grant to Holly the right, exercisable at Holly’s risk and
expense, to make such surveys, tests and inspections of the Sale Assets as Holly may deem
desirable, so long as such surveys, tests or inspections do not damage the Sale Assets or interfere
with the activities of the Partnership Entities thereon and so long as Holly has furnished the
Partnership Entities with evidence that adequate liability insurance is in full force and effect;

               (iv) Holly will have the right to terminate its obligation to purchase the Sale Assets under
this Article V if the results of any searches, surveys, tests or inspections conducted
pursuant to Section 5.2(b)(ii) or Section 5.2(b)(iii) above are, in the reasonable
opinion of Holly, unsatisfactory;

               (v) the closing date for the purchase of the Sale Assets shall, unless otherwise agreed to by
Holly and the Partnership Entities, occur no later than 90 days following receipt by the
Partnership Entities of written notice by Holly of its intention to exercise its option to purchase
the Sale Assets pursuant to Section 5.2(a);

               (vi) the Partnership Entities shall execute, have acknowledged and deliver to Holly a special
warranty deed, assignment of easement, or comparable document, as appropriate, in the applicable
jurisdiction, on the closing date for the purchase of the Sale Assets constituting real property
interests conveying the Sale Assets unto Holly free and clear of all encumbrances created by the
Partnership Entities other than those set forth in Section 5.2(b)(ii) above;

               (vii) the sale of any Sale Assets shall be made on an “as is,” “where is” and “with all
faults” basis, and the instruments conveying such Sale Assets shall contain appropriate
disclaimers; and

               (viii) neither the Partnership Entities nor Holly shall have any obligation to sell or buy the
Sale Assets if any of the material consents referred to in Section 5.1(c) have not been
obtained or such sale or purchase is prohibited by Applicable Law.

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          (c) Holly and the Partnership Entities shall cooperate in good faith in obtaining all
necessary governmental and other third Person approvals, waivers and consents
required for the closing. Any such closing shall be delayed, to the extent required, until
the third Business Day following the expiration of any required waiting periods under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended; provided,
however, that such delay shall not exceed 120 days and, if governmental approvals and
waiting periods shall not have been obtained or expired, as the case may be, by such 120th day,
then Holly shall be deemed to have waived its right of first refusal with respect to the Sale
Assets described in the Disposition Notice and thereafter neither Holly nor the Partnership shall
have any further obligation under this Article V with respect to such Sale Assets unless
such Sale Assets again become subject to this Article V pursuant to Section 5.2(d).

          (d) If the Transfer to the Proposed Transferee is not consummated in accordance with the terms
of the Acquisition Proposal within the later of (A) 180 days after the later of the applicable ROFR
Acceptance Deadline, and (B) 10 days after the satisfaction of all governmental approval or filing
requirements, if any, the Acquisition Proposal shall be deemed to lapse, and the Partnership or
Partnership Entity may not Transfer any of the Sale Assets described in the Disposition Notice
without complying again with the provisions of this Article V if and to the extent then
applicable.

ARTICLE VI

Holly Purchase Option

     6.1 Option to Purchase Tulsa Transferred Assets. The Parties acknowledge the purchase options
and right of first refusal granted to an Affiliate of Holly with respect to the Tulsa Transferred
Assets in the Purchase Option Agreement.

ARTICLE VII

Miscellaneous

     7.1 Choice of Law. This Agreement shall be subject to and governed by the laws of the State
of Delaware, excluding any conflicts-of-law rule or principle that might refer the construction or
interpretation of this Agreement to the laws of another state.

     7.2 Arbitration Provision. Any and all Arbitrable Disputes must be resolved through the use
of binding arbitration using three arbitrators, in accordance with the Commercial Arbitration Rules
of the American Arbitration Association, as supplemented to the extent necessary to determine any
procedural appeal questions by the Federal Arbitration Act (Title 9 of the United States Code). If
there is any inconsistency between this Section and the Commercial Arbitration Rules or the Federal
Arbitration Act, the terms of this Section will control the rights and obligations of the parties.
Arbitration must be initiated within the time limits set forth in this Agreement, or if no such
limits apply, then within a reasonable time or the time period allowed by the applicable statute of
limitations. Arbitration may be initiated by a party (“Claimant”) serving written notice
on the other party (“Respondent”) that the Claimant elects to refer the Arbitrable Dispute
to binding arbitration. Claimant’s notice initiating binding arbitration must identify the
arbitrator Claimant has appointed. The Respondent shall respond to Claimant within
30 days after receipt of Claimant’s notice, identifying the arbitrator Respondent has
appointed.

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If the Respondent fails for any reason to name an arbitrator within the 30 day period,
Claimant shall petition the American Arbitration Association for appointment of an arbitrator for
Respondent’s account. The two arbitrators so chosen shall select a third arbitrator within 30 days
after the second arbitrator has been appointed. The Claimant will pay the compensation and
expenses of the arbitrator named by it, and the Respondent will pay the compensation and expenses
of the arbitrator named by or for it. The costs of petitioning for the appointment of an
arbitrator, if any, shall be paid by Respondent. The Claimant and Respondent will each pay
one-half of the compensation and expenses of the third arbitrator. All arbitrators must (i) be
neutral parties who have never been officers, directors or employees of any of the Holly Entities,
the Partnership Entities or any of their affiliates and (ii) have not less than seven years
experience in the petroleum transportation industry. The hearing will be conducted in Dallas,
Texas and commence within 30 days after the selection of the third arbitrator. The Holly Entities,
the Partnership Entities and the arbitrators shall proceed diligently and in good faith in order
that the award may be made as promptly as possible. Except as provided in the Federal Arbitration
Act, the decision of the arbitrators will be binding on and non-appealable by the parties hereto.
The arbitrators shall have no right to grant or award indirect, consequential, punitive or
exemplary damages of any kind. The Arbitrable Disputes may be arbitrated in a common proceeding
along with disputes under other agreements between the Holly Entities, the Partnership Entities or
their Affiliates to the extent that the issues raised in such disputes are related. Without the
written consent of Holly, on behalf of the Holly Entities, and the Partnership, on behalf of the
Partnership Entities, no unrelated disputes or third party disputes may be joined to an arbitration
pursuant to this Agreement.

     7.3 Notice.

          (a) Any notice or other communication given under this Agreement shall be in writing and shall
be (i) delivered personally, (ii) sent by documented overnight delivery service, (iii) sent by
email transmission, or (iv) sent by first class mail, postage prepaid (certified or registered
mail, return receipt requested). Such notice shall be deemed to have been duly given (x) if
received, on the date of the delivery, with a receipt for delivery, (y) if refused, on the date of
the refused delivery, with a receipt for refusal, or (z) with respect to email transmissions, on
the date the recipient confirms receipt. Notices or other communications shall be directed to the
following addresses.

          Notices to the Holly Entities:

Holly Corporation

100 Crescent Court, Suite 1600

Dallas, Texas 75201

Attention: President

Email address: president@hollycorp.com

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with a copy, which shall not constitute notice, but is required in order to

give proper notice, to:

Holly Corporation

100 Crescent Court, Suite 1600

Dallas, Texas 75201

Attention: General Counsel

Email address: generalcounsel@hollycorp.com

          Notices to the Partnership Entities:

Holly Energy Partners, L.P.

c/o Holly Logistic Services, L.L.C.

100 Crescent Court, Suite 1600

Dallas, Texas 75201

Attention: Senior Vice President

Email address: SVP-HEP@hollyenergy.com

with a copy, which shall not constitute notice, but is required in order to

give proper notice, to:

Holly Energy Partners, L.P.

c/o Holly Logistic Services, L.L.C.

100 Crescent Court, Suite 1600

Dallas, Texas 75201

Attention: General Counsel

Email address: generalcounsel@hollycorp.com

          (b) Either Party may at any time change its address for service from time to time by giving
notice to the other Party in accordance with this Section 7.3.

     7.4 Entire Agreement. This Agreement constitutes the entire agreement of the Parties relating
to the matters contained herein, superseding all prior contracts or agreements, whether oral or
written, relating to the matters contained herein.

     7.5 Termination of Article II. The provisions of Article II of this Agreement may be
terminated by Holly upon a Change of Control of Holly.

     7.6 Amendment or Modification. No amendment or modification of this Agreement shall be valid
unless it is in writing and signed by the parties hereto. No waiver of any provision of this
Agreement shall be valid unless it is in writing and signed by the party against whom the waiver is
sought to be enforced. Any of the exhibits or schedules to this Agreement may be amended,
modified, revised or updated by the parties hereto if each of Holly (on behalf of the Holly
Entities) and the Partnership (on behalf of the Partnership Entities) execute an amended, modified,
revised or updated exhibit or schedule, as applicable, and attach it to this Agreement. Such
amended, modified, revised or updated exhibits or schedules shall be sequentially
numbered (e.g. Exhibit A-1, Exhibit A-2, etc.), dated and appended as an additional exhibit or
schedule to this Agreement and shall replace the prior exhibit or schedule, as applicable, in its

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entirety, except as specified therein. No failure or delay in exercising any right hereunder, and
no course of conduct, shall operate as a waiver of any provision of this Agreement. No single or
partial exercise of a right hereunder shall preclude further or complete exercise of that right or
any other right hereunder.

     7.7 Assignment. No Party shall have the right to assign any of its rights or obligations
under this Agreement without the consent of the other Parties hereto.

     7.8 Additional Partnership Entities. In the event the General Partner desires a Partnership
Group Member who is not a party to this Agreement to acquire Subject Assets or a Partnership Entity
wishes to Transfer any of the Assets that serve the Holly Entities’ refineries to a Partnership
Group Member who is not a party to this Agreement, then the Partnership Group Member that is the
proposed acquiror of the Subject Assets or transferee of the Assets that serve the Holly Entities’
refineries may become a party to this Agreement by executing a joinder in a form reasonably
satisfactory to Holly (on behalf of the Holly Entities) and the Partnership (on behalf of the
Partnership Entities).

     7.9 Counterparts. This Agreement may be executed in any number of counterparts with the same
effect as if all signatory parties had signed the same document. All counterparts shall be
construed together and shall constitute one and the same instrument.

     7.10 Severability. If any provision of this Agreement shall be held invalid or unenforceable
by a court or regulatory body of competent jurisdiction, the remainder of this Agreement shall
remain in full force and effect.

     7.11 Further Assurances. In connection with this Agreement and all transactions contemplated
by this Agreement, each signatory party hereto agrees to execute and deliver such additional
documents and instruments and to perform such additional acts as may be necessary or appropriate to
effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and
all such transactions.

     7.12 Rights of Limited Partners. The provisions of this Agreement are enforceable solely by
the Parties to this Agreement, and no Limited Partner of the Partnership shall have the right,
separate and apart from the Partnership, to enforce any provision of this Agreement or to compel
any Party to this Agreement to comply with the terms of this Agreement.

     7.13 Headings. Headings of the Sections of this Agreement are for convenience of the parties
only and shall be given no substantive or interpretative effect whatsoever. All references in this
Agreement to Sections are to Sections of this Agreement unless otherwise stated.

     7.14 UNEV Option Agreement. The Parties acknowledge and agree that, notwithstanding anything
in this Agreement to the contrary, the terms and provisions of the Option Agreement, dated January
31, 2008, among Holly, Holly UNEV Pipeline Company, Navajo Pipeline, Holly GP, the General Partner,
the Partnership, OLP GP and the Operating Partnership remain in full force and effect.

     7.15 Limitation of Damages. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN ANY OTHER
PROVISION OF THIS AGREEMENT AND

24

 

EXCEPT FOR CLAIMS MADE BY THIRD PARTIES WHICH SHALL NOT BE LIMITED
BY THIS SECTION, THE PARTIES AGREE THAT THE RECOVERY BY ANY PARTY, INCLUDING PURSUANT TO
ARTICLE III, OF ANY LIABILITIES, DAMAGES, COSTS OR OTHER EXPENSES SUFFERED OR INCURRED BY
IT (i) AS A RESULT OF ANY BREACH OR NONFULFILLMENT BY A PARTY OF ANY OF ITS COVENANTS, AGREEMENTS
OR OTHER OBLIGATIONS UNDER THIS AGREEMENT OR (ii) BY REASON OF OR ARISING OUT OF ANY OF THE EVENTS,
CONDITIONS OR OTHER MATTERS LISTED IN SECTIONS 3.1, 3.3 OR 3.4 WHICH THE
PARTIES HAVE AGREED TO INDEMNIFY THE OTHER PARTY AGAINST, SHALL BE LIMITED TO ACTUAL DAMAGES AND
SHALL NOT INCLUDE OR APPLY TO, NOR SHALL ANY PARTY BE ENTITLED TO RECOVER, ANY INDIRECT,
CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES (INCLUDING, WITHOUT LIMITATION, ANY DAMAGES ON ACCOUNT
OF LOST PROFITS OR OPPORTUNITIES OR BUSINESS INTERRUPTION OR DIMINUTION IN VALUE) SUFFERED OR
INCURRED BY ANY PARTY; PROVIDED, HOWEVER, THAT SUCH RESTRICTION AND LIMITATION
SHALL NOT APPLY TO A PARTY’S OBLIGATION TO INDEMNIFY THE OTHER PARTY UNDER SECTIONS 3.1,
3.3 OR 3.4 HEREOF, AS APPLICABLE, (y) AS A RESULT OF A THIRD PARTY CLAIM FOR SUCH
INDIRECT, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES AGAINST SUCH INDEMNIFIED PARTY OR (z)
INDIRECT, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES THAT ARE A RESULT OF SUCH INDEMNIFYING
PARTY’S OR ITS AFFILIATES’ GROSS NEGLIGENCE OR WILLFUL MISCONDUCT (INCLUDING, WITHOUT LIMITATION,
ANY DAMAGES ON ACCOUNT OF LOST PROFITS OR OPPORTUNITIES OR BUSINESS INTERRUPTION OR DIMINUTION IN
VALUE). FOR PURPOSES OF THIS SECTION 7.15, “AFFILIATES” OF THE INDEMNIFYING PARTY SHALL NOT
INCLUDE THE PARTNERSHIP GROUP MEMBERS WHEN A HOLLY ENTITY IS THE INDEMNIFYING PARTY AND SHALL NOT
INCLUDE THE HOLLY GROUP MEMBERS WHEN THE INDEMNIFYING PARTY IS A PARTNERSHIP ENTITY.

[Remainder of Page Intentionally Left Blank.]

25

 

     IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the
date first written above.

	 	 	 	 	 
	 	HOLLY ENTITIES:

HOLLY CORPORATION

 	 
	 	By:  	/s/ David L. Lamp
 	 
	 	 	David L. Lamp 	 
	 	 	President 	 
	 
	 	HOLLY REFINING & MARKETING
COMPANY 

— WOODS CROSS (formerly Holly Refining & Marketing Company)

 	 
	 	By:  	/s/ David L. Lamp
 	 
	 	 	David L. Lamp 	 
	 	 	President 	 
	 
	 	LOREFCO, INC.

 	 
	 	By:  	/s/ David L. Lamp
 	 
	 	 	David L. Lamp 	 
	 	 	Vice President 	 
	 
	 	NAVAJO REFINING COMPANY, L.L.C.

(formerly Navajo Refining Company, L.P.)

 	 
	 	By:  	/s/ David L. Lamp
 	 
	 	 	David L. Lamp 	 
	 	 	Executive Vice President 	 
	 

[Signature Page 1 of 5 to Fourth Amended and Restated Omnibus Agreement]

 

 

	 	 	 	 	 
	 	NAVAJO PIPELINE CO., L.P.

 	 
	 	By:  	/s/ Bruce R. Shaw
 	 
	 	 	Bruce R. Shaw 	 
	 	 	Vice President and Chief Financial Officer 	 
	 
	 	WOODS CROSS REFINING COMPANY, L.L.C.

 	 
	 	By:  	/s/ David L. Lamp
 	 
	 	 	David L. Lamp 	 
	 	 	President 	 
	 
	 	HOLLY REFINING & MARKETING

— TULSA LLC

 	 
	 	By:  	/s/ David L. Lamp
 	 
	 	 	David L. Lamp 	 
	 	 	President 	 
	 

	 	 	 	 	 	 	 	 	 
	 	 	PARTNERSHIP ENTITIES:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HOLLY ENERGY PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	HEP Logistics Holdings, L.P.	 	 
	 	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	Holly Logistic Services, L.L.C.	 	 
	 

	 	 	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ David G. Blair
 

David G. Blair
	 	 
	 

	 	 	 	 	 	President	 	 

[Signature Page 2 of 5 to Fourth Amended and Restated Omnibus Agreement]

 

 

	 	 	 	 	 
	 	HOLLY ENERGY PARTNERS — OPERATING, L.P.

 	 
	 	By:  	/s/ David G. Blair
 	 
	 	 	David G. Blair 	 
	 	 	Senior Vice President 	 
	 
	 	HOLLY LOGISTIC SERVICES, L.L.C.

 	 
	 	By:  	/s/ David G. Blair
 	 
	 	 	David G. Blair 	 
	 	 	President 	 
	 

	 	 	 	 	 	 	 	 	 
	 	 	HEP LOGISTICS HOLDINGS, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Holly Logistic Services, L.L.C,	 	 
	 	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ David G. Blair
 

David G. Blair 

President
	 	 

	 	 	 	 	 
	 	HEP LOGISTICS GP, L.L.C.

 	 
	 	By:  	/s/ David G. Blair
 	 
	 	 	David G. Blair 	 
	 	 	Senior Vice President 	 
	 

	 	 	 	 	 	 	 	 	 
	 	 	HEP MOUNTAIN HOME, L.L.C.	 	 
	 	 	HEP PIPELINE GP, L.L.C.	 	 
	 	 	HEP PIPELINE, L.L.C.	 	 
	 	 	HEP REFINING GP, L.L.C.	 	 
	 	 	HEP REFINING, L.L.C.	 	 
	 	 	HEP WOODS CROSS, L.L.C.	 	 
	 	 	LOVINGTON-ARTESIA, L.L.C.	 	 
	 
	 	 	By:	 	HOLLY ENERGY PARTNERS
—
OPERATING, L.P.	 	 
	 	 	 	 	Sole Member	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ David G. Blair
 

David G. Blair 

Senior Vice President
	 	 

[Signature Page 3 of 5 to Fourth Amended and Restated Omnibus Agreement]

 

 

	 	 	 	 	 	 	 	 	 
	 	 	HEP NAVAJO SOUTHERN, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	HEP Pipeline GP, L.L.C.	 	 
	 	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ David G. Blair
 

David G. Blair 

Senior Vice President
	 	 

	 	 	 	 	 	 	 	 	 
	 	 	HEP REFINING ASSETS, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	HEP Refining GP, L.L.C.	 	 
	 	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ David G. Blair
 

David G. Blair 

Senior Vice President
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HEP PIPELINE ASSETS, LIMITED PARTNERSHIP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	HEP Pipeline GP, L.L.C.	 	 
	 	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ David G. Blair
 

David G. Blair 

Senior Vice President
	 	 

	 	 	 	 	 
	 	HEP TULSA LLC

 	 
	 	By:  	/s/ David G. Blair
 	 
	 	 	David G. Blair 	 
	 	 	Senior Vice President 	 
	 
	 	ROADRUNNER PIPELINE, L.L.C.

 	 
	 	By:  	/s/ David G. Blair
 	 
	 	 	David G. Blair 	 
	 	 	Senior Vice President 	 
	 

[Signature Page 4 of 5 to Fourth Amended and Restated Omnibus Agreement]

 

 

	 	 	 	 	 
	 	HOLLY ENERGY STORAGE — TULSA LLC

 	 
	 	By:  	/s/ David G. Blair
 	 
	 	 	David G. Blair 	 
	 	 	President 	 
	 
	 	HOLLY ENERGY STORAGE — LOVINGTON LLC

 	 
	 	By:  	/s/ David G. Blair
 	 
	 	 	David G. Blair 	 
	 	 	President 	 
	 

[Signature Page 5 of 5 to Fourth Amended and Restated Omnibus Agreement]

 

 

SCHEDULE I

Administrative Fee

	 	 	 	 	 
	 	 	Amount of Annual Administrative Fee
	Years beginning July 13, 2004 through
June 30, 2007
	 	$	2,000,000	 
	 
	 	 	 	 
	Years beginning July 1, 2007 through
February 29, 2008
	 	$	2,100,000	 
	 
	 	 	 	 
	Years beginning March 1, 2008
	 	$	2,300,000	 

General and Administrative Services

     (1) executive services

     (2) finance, including treasury, and administration services

     (3) information technology services

     (4) legal services

     (5) health, safety and environmental services

     (6) human resources services

Schedule I

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