Document:

exv10w4

Exhibit 10.4

EXECUTION COPY

WAIVER, CONSENT, PARTIAL RELEASE

AND FOURTH AMENDMENT TO

AMENDED REVOLVING CREDIT AGREEMENT

AND LOAN DOCUMENTS

          WAIVER, CONSENT, PARTIAL RELEASE AND FOURTH AMENDMENT, dated as of July 2, 2008 (this
“Agreement”), by and among Alon USA Energy, Inc., a Delaware corporation (the
“Parent”), Alon USA, LP, f/k/a SWBU, L.P., a Texas limited partnership (“Alon LP”;
together with such other subsidiaries of the Parent as may be designated as a borrower hereunder by
Alon LP with the prior written consent of the Agent and the Required Lenders (as defined in the
Credit Agreement), each individually a “Borrower”, and, collectively, the
“Borrowers”), all direct and indirect subsidiaries of the Parent other than the “Excluded
Subsidiaries” referred to below (the Parent and such direct and indirect subsidiaries that are not
Excluded Subsidiaries are hereinafter referred to individually as a “Guarantor Company”
and, collectively, as the “Guarantor Companies”), the Lenders (as defined below), Israel
Discount Bank of New York, as administrative agent, co-arranger and collateral agent for the
Lenders (in such capacity, the “Agent”), and Bank Leumi USA, as co-arranger for the Lenders
(“Bank Leumi”).

WITNESSETH

          WHEREAS, the Borrowers, the Guarantor Companies, the financial institutions from time to time
party thereto (each a “Lender” and collectively, the “Lenders”), the Agent and Bank
Leumi are parties to the Amended Revolving Credit Agreement, dated as of June 22, 2006 (as amended
by (i) the First Amendment, dated as of August 4, 2006, (ii) the Waiver, Consent, Partial Release
and Second Amendment, dated as of February 28, 2007, and (iii) the Third Amendment, dated as of
June 29, 2007, the “Credit Agreement”), pursuant to which the Lenders have made revolving
loans to the Borrowers;

          WHEREAS, the obligations of the Borrowers and the Guarantor Companies to the Agent and the
Lenders in respect of the Credit Agreement and the other Loan Documents are secured, inter
alia, by the collateral and other security interests referred to in the Credit Agreement,
the Security Agreement, the Pledge Agreement and the other Security Documents;

          WHEREAS, the Borrowers have informed the Lenders that (i) Alon Louisiana Holdings, Inc., a
Delaware corporation and a direct, wholly-owned subsidiary of Alon Assets (“Alon Louisiana
Holdings”), (ii) Alon Refining Louisiana, Inc., a Delaware corporation and a direct subsidiary
of Alon Louisiana Holdings (“Alon Louisiana”), and (iii) Alon Refining Krotz Springs, Inc.,
a Delaware corporation and a direct subsidiary of Alon Louisiana Holdings (“Alon Krotz
Springs”; together with Alon Louisiana, Alon Louisiana Holdings, and each other Person (other
than any Person that has been at any time a party to the Credit Agreement) that becomes a
Subsidiary of Alon Louisiana Holdings from time to time, the “Released Parties”), intend to
acquire a refinery located in Krotz Springs, Louisiana from Valero Energy Corporation (the
“Krotz Springs Refinery”) and to enter into new loan documents to finance the acquisition
of the Krotz Springs Refinery, including (x) the Term Loan Agreement to be dated on or about July
3, 2008, among Alon Louisiana, Alon Krotz Springs, the lenders party thereto and Credit Suisse, as
administrative agent and collateral agent and (y) the Loan and Security Agreement to be dated on

 

 

or about July 3, 2008, among Alon Louisiana, Alon Krotz Springs, the lenders party thereto and
Bank of America, N.A., as administrative agent (as such documents may be amended, supplemented or
otherwise modified from time to time, the “Krotz Springs Loan Documents”);

          WHEREAS, the Borrowers, the Guarantor Companies, the Lenders, Bank Leumi and the Agent wish to
amend the Credit Agreement and the Loan Documents, in order to exclude the Released Parties from
certain provisions of the Credit Agreement that would otherwise be applicable to such Subsidiaries
of the Parent; and

          WHEREAS, the Borrowers and the Guarantor Companies have requested that the Agent and the
Required Lenders (i) consent to and waive any Event of Default that would or will otherwise arise
under Section 10.01(c) or (d) of the Credit Agreement as a result of a breach of Section 7.02(a) or
(b) of the Credit Agreement as a result of the execution of the Krotz Springs Loan Documents, (ii)
consent to the release of the Agent’s Liens on the Released Parties’ Capital Stock and all assets
of the Released Parties and (iii) release the Released Parties from the Credit Agreement and the
other Loan Documents and all Obligations thereunder;

          NOW THEREFORE, in consideration of the foregoing and the mutual covenants herein contained,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

          1. Definitions. Any capitalized term used herein and not defined shall have the
meaning assigned to it in the Credit Agreement.

          2. Amendments to Credit Agreement.

               (a) Preamble. The Preamble to the Credit Agreement is hereby amended and restated in
its entirety to read as follows:

     “AMENDED REVOLVING CREDIT AGREEMENT (this “Agreement”), dated
as of June 22, 2006 by and among Alon USA Energy, Inc., a Delaware
corporation (the “Parent”), Alon USA, LP, f/k/a SWBU, L.P., a Texas
limited partnership (“Alon LP”; and together with such other
subsidiaries of the Parent as may be designated as a borrower hereunder by
Alon LP with the prior written consent of the Agent and the Required Lenders
(each as defined below), each individually a “Borrower”, and,
collectively, the “Borrowers”), all direct and indirect subsidiaries
of the Parent other than the “Excluded Subsidiaries” referred to below (the
Parent and such direct and indirect subsidiaries that are not Excluded
Subsidiaries are hereinafter referred to individually as a “Guarantor
Company” and, collectively, as the “Guarantor Companies”), the
financial institutions from time to time party hereto (each a
“Lender” and collectively, the “Lenders”), Israel Discount
Bank of New York, as administrative agent, co-arranger and collateral agent
for the Lenders (in such capacity, the “Agent”), and Bank Leumi USA,
as co-arranger for the Lenders.”

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               (b) New Definitions. Section 1.01 of the Credit Agreement is hereby amended to add
the following defined terms in the appropriate alphabetical order:

     ““Alon Krotz Springs” means Alon Refining Krotz
Springs, Inc., a Delaware corporation and a direct
subsidiary of Alon Louisiana Holdings.”

     ““Alon Louisiana” means Alon Refining
Louisiana, Inc., a Delaware corporation and a direct
subsidiary of Alon Louisiana Holdings.”

     ““Alon Louisiana Holdings” means Alon Louisiana
Holdings, Inc., a Delaware corporation and a direct,
wholly-owned subsidiary of Alon Assets.”

     “Alon Louisiana Subsidiaries” means Alon Krotz
Springs, Alon Louisiana, Alon Louisiana Holdings, and each
of their respective Subsidiaries (other than any Person that
has been at any time a party to the Credit Agreement).

     ““Excluded Subsidiaries” means (i) the
Subsidiaries of Alon Interests, (ii) the Bank of America
Financed Subsidiaries, and (iii) the Alon Louisiana
Subsidiaries.”

               (c) Amendment and Restatement of Existing Definitions. The following defined terms in
Section 1.01 of the Credit Agreement are hereby amended and restated in their entirety to read as
follows:

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

     ““Fixed Assets and Other Specified Property” means any (a)
Fixed Assets, (b) any Capital Stock issued by a Subsidiary of a Company and
owned by a Company (other than any Capital Stock of (i) the Bank of America
Financed Subsidiaries owned by Paramount Petroleum Holdings, (ii) Alon
Interests owned by Alon LP, (iii) any Subsidiary of Alon Interests and (iv)
any Alon Louisiana Subsidiary), and (c) any Indebtedness owed by one Company
to another Company which is evidenced by a promissory note.”

               (d) Interest Rate and Payment; Production Increase. Section 2.13(b) of the Credit
Agreement is hereby amended by deleting the parenthetical in the second line thereof—“other than
the Bank of America Financed Subsidiaries)”—and by substituting therefor the following: “(other
than the Bank of America Financed Subsidiaries and the Alon Louisiana Subsidiaries)”.

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               (e) Interest Rate and Payment; Making a Request for a Facility Sublimit Increase.
Section 2.13(c) of the Credit Agreement is hereby amended by deleting the parenthetical in clause
(B) of the third sentence thereof containing the phrase “(other than the Bank of America Financed
Subsidiaries)” and by substituting therefor the following: “(other than the Bank of America
Financed Subsidiaries and the Alon Louisiana Subsidiaries)”.

               (f) Representations and Warranties; Subsidiaries. Section 6.01(f) of the Credit
Agreement is hereby amended by deleting the words “and the Bank of America Financed Subsidiaries”
and by substituting therefor the following: “the Bank of America Financed Subsidiaries and the Alon
Louisiana Subsidiaries”.

               (g) Affirmative Covenants; Subsidiaries, Etc. Section 7.01(b)(i) of the Credit
Agreement is hereby amended by deleting the first parenthetical (which begins in the first line) in
its entirety and by substituting therefor the following:

“(other than (A) a Subsidiary of Alon Interests, (B) any direct Subsidiary
of the Parent and any Subsidiary of any direct Subsidiary of the Parent
(other than Subsidiaries of Alon USA), (C) the Bank of America Financed
Subsidiaries and (D) the Alon Louisiana Subsidiaries)”

               (h) Negative Covenants; Liens, Etc. Section 7.02(a) of the Credit Agreement is hereby
amended by deleting each parenthetical in the first paragraph of such Section containing the phrase
“(other than the Bank of America Financed Subsidiaries and Subsidiaries of Alon Interests)” and by
substituting therefor the following: “(other than the Excluded Subsidiaries)”.

               (i) Negative Covenants; Indebtedness. Section 7.02(b) of the Credit Agreement is
hereby amended by deleting the parenthetical in the second and third lines of such Section
containing the phrase “(other than the Bank of America Financed Subsidiaries and Subsidiaries of
Alon Interests)” and by substituting therefor the following: “(other than the Excluded
Subsidiaries)”.

               (j) Negative Covenants; Merger, Consolidation, Sale of Assets, Etc. Section 7.02(c)
of the Credit Agreement is hereby amended by deleting in the second and third lines of clause (i)
and clause (ii) of such Section the phrase “, other than the Bank of America Financed Subsidiaries
and Subsidiaries of Alon Interests,” and by substituting therefor the following: “, other than the
Excluded Subsidiaries,”.

               (k) Negative Covenants; Investments, Etc. Section 7.02(e) of the Credit Agreement is
hereby amended by deleting in the second and third lines and the fourth and fifth lines of such
Section the parenthetical “(other than the Bank of America Financed Subsidiaries and Subsidiaries
of Alon Interests)” and by substituting therefor the following: “(other than the Excluded
Subsidiaries)”.

          3. Amendments to the Pledge Agreement and Security Agreement.

               (a) Section 2 of the Pledge Agreement is hereby amended by deleting the last sentence of
Section 2 in its entirety and by substituting therefor the following:

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“Anything to the contrary notwithstanding, the Pledged Shares shall not
include (i) the Capital Stock of Alon USA Interests, LLC, a Texas limited
liability company, and its Subsidiaries, (ii) the Capital Stock of the Bank
of America Financed Subsidiaries, (iii) the Capital Stock of the Alon
Louisiana Subsidiaries and (iv) Capital Stock in any Pledgor held by
management or employees or issuable upon the exercise of warrants or
options, in each case to the extent permitted by and in accordance with the
Revolving Credit Agreement.”

               (b) Section 2 of the Security Agreement is hereby amended by deleting the last sentence of
Section 2 in its entirety and by substituting therefor the following:

“Anything to the contrary notwithstanding, Collateral shall not include (i)
the Capital Stock of the Bank of America Financed Subsidiaries, (ii) the
Capital Stock of the Alon Louisiana Subsidiaries and (iii) the Capital Stock
of Alon Interests.”

          4. Waiver, Consent and Release. Subject to the satisfaction of the conditions
contained in Section 7 hereof and pursuant to Section 12.03 of the Credit Agreement:

               (a) The Agent and the Required Lenders consent to, and waive any Default or Event of Default
that would otherwise arise under Section 10.01(c) or (d) of the Credit Agreement as a result of a
breach of Section 7.02(a) or (b) of the Credit Agreement by reason of the execution and delivery of
the Krotz Springs Loan Documents.

               (b) The Agent and the Required Lenders hereby release their security interest in and lien on
the Capital Stock and all assets of the Released Parties and release the Released Parties from the
Credit Agreement and the other Loan Documents and all Obligations thereunder.

          5. Releases of Security Interests and Liens.

               (a) Subject to the satisfaction of the conditions set forth in Section 7 hereof, the Agent’s
security interest in and lien on the Capital Stock and assets of the Released Parties is hereby
released without recourse, representation or warranty of any kind, express or implied and at the
sole cost and expense of Borrowers.

               (b) The Agent will, at the request of Administrative Borrower, execute and deliver, and hereby
authorizes the Administrative Borrower to execute and deliver, such other instruments and
documents, and take such further action, as Administrative Borrower may reasonably request to
effect or evidence the termination of Agent’s security interest in and lien on the Capital Stock
and assets of the Released Parties and releases the Released Parties from the Credit Agreement and
the other Loan Documents and all Obligations thereunder as provided in clause (a) above, but
without recourse, representation or warranty of any kind, express or implied, and at the sole cost
and expense of Borrowers.

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          6. Representations and Warranties. To induce the other parties hereto to enter into
this Agreement, the Loan Parties represent and warrant to the Agent and the Lenders that, as of the
Agreement Effective Date (as defined below):

               (a) The execution, delivery and performance by each of the Loan Parties of this Agreement has
been duly authorized by all requisite corporate actions; that this Agreement has been duly executed
and delivered by each of the Loan Parties; and that this Agreement and the Credit Agreement, as
amended by this Agreement, constitute legal, valid and binding obligations of the Loan Parties,
enforceable against them in accordance with its terms (subject to the applicable bankruptcy,
reorganization, insolvency, moratorium or similar laws affecting creditors’ rights generally and
subject, as to enforceability, to equitable principles of general application (regardless of
whether enforcement is sought in a proceeding in equity or at law)).

               (b) The representations and warranties contained in Article VI of the Credit Agreement and in
each other Loan Document and certificate or other writing delivered to Agent or any Lender pursuant
thereto on or prior to the Agreement Effective Date are true and correct in all material respects
on and as of the Agreement Effective Date, after giving effect to the terms of this Agreement, as
though made on and as of such date, except to the extent that such representations and warranties
expressly relate solely to an earlier date (in which case such representations and warranties shall
be true and correct in all material respects on and as of such date).

               (c) No Default or Event of Default has occurred and is continuing on the Agreement Effective
Date or will result from this Agreement becoming effective in accordance with its terms.

               (d) The organizational structure of Parent and its Subsidiaries is as set forth on
Schedule A hereto.

          7. Conditions to Effectiveness. The effectiveness of this Agreement is subject to the
fulfillment on or before July 2, 2008, in a manner satisfactory to the Agent, of the condition
precedent that this Agreement shall have been executed and delivered by the Loan Parties, the Agent
and the Lenders (the date such condition is fulfilled is hereafter referred to as the
“Agreement Effective Date”).

          8. Reservation of Rights. This release shall apply only to the Capital Stock and all
assets of the Released Parties and does not, in any manner whatsoever, allow for the release of
liens on any other Collateral of any other Loan Party. The Agent’s liens on all such other
Collateral shall remain in full force and effect. No action or acquiescence by the Agent and the
Lenders, including, without limitation, the amendment under this Agreement of, or the acceptance of
any payments under, the Credit Agreement, shall constitute a waiver of any Default or Event of
Default, except as expressly set forth herein. Accordingly, the Agent and the Lenders reserve all
of their rights under the Credit Agreement, the Loan Documents, at law and otherwise regarding any
such Default or Event of Default.

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          9. Continued Effectiveness of Loan Documents. Each of the Loan Parties hereby (i)
confirms and agrees that each Loan Document to which it is a party is, and shall continue to be, in
full force and effect and is hereby ratified and confirmed in all respects except that on and after
the Agreement Effective Date all references in any such Loan Document to “the Credit Agreement”,
“thereto”, “thereof”, “thereunder” or words of like import referring to the Credit Agreement shall
mean the Credit Agreement as amended by this Agreement, and (ii) confirms and agrees that to the
extent that any such Loan Document purports to assign or pledge to the Collateral Agent, or to
grant to the Collateral Agent a security interest in or lien on, any collateral as security for the
Obligations of the Loan Parties from time to time existing in respect of the Credit Agreement and
the Loan Documents, such pledge, assignment and/or grant of the security interest or lien is hereby
ratified and confirmed in all respects, except with respect to the Capital Stock or other
Collateral released hereunder.

          10. Loan Parties; Borrowing Base; Intercreditor Agreement.

               (a) Notwithstanding anything to the contrary, after the Agreement Effective Date:

                    (i) none of the Released Parties shall be deemed to be a Loan Party, a Company, or a Guarantor
Company under the Credit Agreement or any of the other Loan Documents;

                    (ii) no assets of the Released Parties shall be included in any calculation of the Borrowing
Base under the Credit Agreement;

                    (iii) the Capital Stock and all assets of the Released Parties shall no longer be collateral
of the Agent and the Lenders under the Intercreditor Agreement;

                    (iv) the Released Parties shall be released from the Intercreditor Agreement; and

                    (v) none of the Released Parties shall be subject to the terms and conditions of the Credit
Agreement and the other Loan Documents, and no Default or Event of Default shall result on account
of any representation, warranty, covenant or agreement set forth in the Credit Agreement and the
other Loan Documents insofar as they relate to any Released Party or any action or failure to act
by any Released Party.

               (b) In no event shall any Person that has been at any time a party to the Credit Agreement be
a Released Party.

          11. Miscellaneous.

               (a) This Agreement may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which shall be deemed to be an original, but all of which
taken together shall constitute one and the same agreement. Delivery

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of a counterpart hereby by facsimile transmission shall be equally effective as delivery of a
manually executed counterpart hereof.

               (b) Section and paragraph headings herein are included for convenience of reference only and
shall not constitute a part of this Agreement for any other purpose.

               (c) This Agreement shall be governed by, and construed in accordance with, the laws of the
State of New York.

               (d) The Loan Parties will pay on demand all reasonable fees, reasonable out-of-pocket costs
and expenses of the Agent in connection with the preparation, execution and delivery of this
Agreement, including, without limitation, the reasonable fees, out-of-pocket disbursements and
other client charges of Schulte Roth & Zabel LLP.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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

	 	 	 	 	 
	 	Borrowers:

ALON USA, LP

By:   Alon USA GP, LLC, a Delaware limited

         liability company, its general partner

 	 
	 	By:  	/s/ Shai Even
 	 
	 	 	Name:  	Shai Even 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

Signatures Pages to the Waiver, Consent, Partial Release and Fourth Amendment

 

	 	 	 	 	 
	 	Guarantor Companies:

ALON ASSETS, INC.

ALON USA OPERATING, INC

ALON USA REFINING, INC.

ALON ASPHALT BAKERSFIELD, INC

ALON USA, INC.

ALON USA ENERGY, INC.

ALON USA CAPITAL, INC.

 	 
	 	By:  	/s/ Shai Even
 	 
	 	 	Name:  	Shai Even 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ALON USA GP, LLC

 	 
	 	By:  	/s/ Shai Even
 	 
	 	 	Name:  	Shai Even 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ALON USA INTERESTS, LLC

 	 
	 	By:  	/s/ Shai Even
 	 
	 	 	Name:  	Shai Even 	 
	 	 	Title:  	Vice President 	 
	 
	 	ALON USA DELAWARE, LLC

ALON PIPELINE LOGISTICS, LLC

 	 
	 	By:  	/s/ David Wiessman
 	 
	 	 	Name:  	David Wiessman 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

Signatures Pages to the Waiver, Consent, Partial Release and Fourth Amendment

 

	 	 	 	 	 
	 	ALON CRUDE PIPELINE, LLC

ALON PARAMOUNT HOLDINGS, INC.

PARAMOUNT OF WASHINGTON, LLC

PARAMOUNT OF OREGON, LLC

 	 
	 	By:  	/s/ Shai Even
 	 
	 	 	Name:  	Shai Even 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

Signatures Pages to the Waiver, Consent, Partial Release and Fourth Amendment

 

	 	 	 	 	 
	 	Agent and Lender:

ISRAEL DISCOUNT BANK OF NEW YORK

 	 
	 	By:  	/s/ Amir Barash
 	 
	 	 	Name:  	Amir Barash 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	By:  	                      /s/ David Herzog
 	 
	 	 	Name:  	David Herzog 	 
	 	 	Title:  	First Vice President 	 
	 
	 	Lender and Co-arranger:

BANK LEUMI USA

 	 
	 	By:  	/s/ Yuval Talmy
 	 
	 	 	Name:  	Yuval Talmy 	 
	 	 	Title:  	First Vice President 	 
	 
	 	By:  	                   /s/ Michaela Klein, 212
 	 
	 	 	Name:  	Michaela Klein, 212 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signatures Pages to the Waiver, Consent, Partial Release and Fourth Amendmentexv10w5

Exhibit 10.5

SERIES A PREFERRED STOCK PURCHASE AGREEMENT

     THIS SERIES A PREFERRED STOCK PURCHASE AGREEMENT (the “Agreement”) is made as of the
3rd day of July, 2008 (the “Initial Closing Date”) by and between Alon Refining
Louisiana, Inc., a Delaware corporation (the “Company”), and Alon Israel Oil Company, Ltd., an
Israeli limited liability company (the “Purchaser”).

     The parties hereby agree as follows:

     1. Purchase and Sale of Series A Preferred Stock.

          1.1. Sale and Issuance of Series A Preferred Stock. Subject to the terms of this
Agreement, the Purchaser hereby purchases and the Company hereby sells and issues to the Purchaser
80,000 shares of the Series A Preferred Stock, par value $1,000.00 per share (the “Preferred
Stock”), of the Company at a purchase price per share of $1,000.00 (the “Price Per Share”). The
shares of Preferred Stock issued to the Purchaser pursuant to this Agreement shall be referred to
in this Agreement as the “Shares”.

          1.2. Deliveries.

               (a) Concurrently herewith, the Company has delivered or caused to be delivered to the
Purchaser (i) a certificate representing the Shares being purchased by the Purchaser on the Initial
Closing Date, and (ii) a duly executed counterpart signature page to the Stockholders Agreement.

               (b) Concurrently herewith, the Purchaser has delivered or caused to be delivered to the
Company (i) payment of the purchase price for the Shares by wire transfer to a bank account
designated by the Company, and (ii) a duly executed counterpart signature page to the Stockholders
Agreement.

          1.3. Letters of Credit.

               (a) The Company and the Purchaser acknowledge and affirm that the Purchaser shall cause to be
issued and delivered to Bank of America, N.A. (“Bank of America”) on the date of this Agreement, or
such other date as the Company and Purchaser shall mutually agree in writing, one or more
irrevocable standby letters of credit (each, a “Letter of Credit”) up to the aggregate amount of
$55,000,000 in order to support the borrowing base of Alon Refining Krotz Springs, Inc., a Delaware
corporation (“Krotz Springs”), under the Loan and Security Agreement by and among the Company,
Krotz Springs, the banks and financial institutions listed on the signature page thereof as
“Lenders”, and Bank of America, N.A., a national banking association, as administrative agent (the
“Credit Agreement”).

               (b) Purchaser shall bear the expenses of the Letters of Credit. Notwithstanding the
foregoing, until the earlier of (1) the release of all Letters of Credit or (2) the date which is
six months following the initial issuance of the Letters of Credit, the Company shall pay to
Purchaser, in consideration for causing the issuance of the Letters of Credit, a rate per annum
equal to 2% of the aggregate amount of Letters of Credit outstanding. If, after

 

 

compliance by the Company with its obligations under Section 3.3 of the Stockholders Agreement
to attempt to replace or secure the release of the Letters of Credit, the Letters of Credit
continue to remain outstanding after such six month period, Purchaser will continue to provide the
Letter of Credit support for an additional six month period during which the Company shall pay to
Purchaser, in consideration for continuing the Letter of Credit support, a rate per annum equal to
2% of the aggregate amount of Letters of Credit outstanding. If, after compliance by the Company
with its obligations under Section 3.3 of the Stockholders Agreement, the Letters of Credit
continue to remain outstanding 12 months after the original issuance of the Letters of Credit,
Purchaser will continue to provide the Letter of Credit support for an additional six month period
during which the Company shall pay to Purchaser, in consideration for continuing the Letter of
Credit support, a rate per annum equal to 4% of the aggregate amount of Letters of Credit
outstanding. If, after compliance by the Company with its obligations under Section 3.3 of the
Stockholders Agreement, the Letters of Credit continue to remain outstanding 18 months after the
original issuance of the Letters of Credit, the Company shall, within three days after the
expiration of such 18 month period, pay to Purchaser a penalty in an amount equal to the difference
between (A) the aggregate amount of payments the Company would have paid to Purchaser for the
Letter of Credit support during such 18 month period if the rates described above would have been
10.75% , less (B) the aggregate amount of payments actually made by the Company to Purchaser for
the Letter of Credit support during such 18 month period. Subject to receipt of the penalty
payment by the Company, Purchaser will thereafter continue to provide the Letter of Credit support
until such time as either the Company shall have successfully replaced the Letters of Credit or
such Letters of Credit shall have been released by Bank of America, during which time the Company
shall pay to Purchaser, in consideration for continuing the letter of credit support, a rate per
annum equal to 10.75% of the aggregate amount of Letters of Credit outstanding.

          1.4. Defined Terms Used in this Agreement. In addition to the terms defined above,
the following terms used in this Agreement shall be construed to have the meanings set forth or
referenced below.

          “Business Day” means a day other than a Saturday, Sunday or other day on which commercial
banks in Dallas, Texas are not open for business.

          “Person” means any individual, corporation, partnership, trust, limited liability company,
association or other entity.

          “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

          “Stockholders Agreement” means the Stockholders Agreement by and between Alon USA Energy Inc,
a Delaware corporation, the Company, the Purchaser and the other stockholders of the Company dated
as of the Closing Date.

          “Transaction Agreements” means this Agreement and the Stockholders Agreement.

2

 

     2. Representations and Warranties of the Company. The Company hereby represents and
warrants to the Purchaser as of the Initial Closing Date as follows:

          2.1. Organization, Good Standing and Corporate Power. The Company is a corporation
duly organized, validly existing and in good standing under the laws of the State of Delaware and
has all requisite corporate power and authority to carry on its business as presently conducted.

          2.2. Authorization. All corporate action required to be taken by the Company’s Board
of Directors and stockholders in order to authorize the Company to enter into the Transaction
Agreements, and to issue the Shares at the Initial Closing Date, has been taken. All action on the
part of the officers of the Company necessary for the execution and delivery of the Transaction
Agreements, the performance of all obligations of the Company under the Transaction Agreements to
be performed as of the Initial Closing Date, and the issuance and delivery of the Shares has been
taken. The Transaction Agreements constitute valid and legally binding obligations of the Company,
enforceable against the Company in accordance with their respective terms except (a) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws
of general application relating to or affecting the enforcement of creditors’ rights generally, or
(b) as limited by laws relating to the availability of specific performance, injunctive relief, or
other equitable remedies.

          2.3. Valid Issuance of Shares. The Shares, when issued, sold and delivered in
accordance with the terms and for the consideration set forth in this Agreement, will be validly
issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions
on transfer under the Transaction Agreements, applicable state and federal securities laws and
liens or encumbrances created by or imposed by the Purchaser. Assuming the accuracy of the
representations of the Purchaser in Section 3 of this Agreement and subject to the filings
described in Section 2.4 below, the Shares will be issued in compliance with all applicable
federal and state securities laws.

          2.4. Governmental Consents and Filings. Assuming the accuracy of the representations
made by the Purchaser in Section 3 of this Agreement, no consent, approval, order or
authorization of, or registration, qualification, designation, declaration or filing with, any U.S.
federal, state or local governmental authority is required on the part of the Company in connection
with the consummation of the transactions contemplated by this Agreement, except for filings
pursuant to the Securities Act and applicable state securities laws.

          2.5. No Prohibition. No law or order of any governmental entity is in effect, or
stayed pending appeal, which restrains or prohibits, or renders unlawful, either Company’s
consummation of the transactions contemplated hereby. No claim, action, suit investigation or
other proceeding is pending or, to the Company’s knowledge, threatened before any governmental
entity, which purports to enjoin or restrain the Company or to seek relief from or against the
Company, or which could result in an order prohibiting the Company from, consummating such
transactions.

          2.6. No Violation. The execution, delivery and performance of the Transaction
Agreements and the consummation of the transactions contemplated by the

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Transaction Agreements will not result in any violation or default (i) of any provisions of
the Company’s Certificate of Incorporation or Bylaws, each as amended to date, (ii) of any
judgment, order, writ or decree binding on the Company, (iii) under any contract, agreement, note,
indenture or mortgage to which the Company is a party or by which its properties and assets are
bound, or (iv) to its knowledge, of any provision of federal or state statute, rule or regulation
applicable to the Company, in each case the violation of which would have a material adverse effect
on the business, assets, liabilities, financial condition, property or results of operations of the
Company.

     4. Representations and Warranties of the Purchaser. The Purchaser hereby represents
and warrants to the Company that:

          4.1. Existence; Good Standing; Authorization. The Purchaser is a limited liability
company duly formed and validly existing under the laws of Israel. The Purchaser has full power
and authority to enter into the Transaction Agreements. The Transaction Agreements to which the
Purchaser is a party constitute valid and legally binding obligations of the Purchaser, enforceable
in accordance with their terms, except (a) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to
or affecting the enforcement of creditors’ rights generally, or (b) as limited by laws relating to
the availability of specific performance, injunctive relief, or other equitable remedies.

          4.2. Purchase Entirely for Own Account. This Agreement is made with the Purchaser in
reliance upon the Purchaser’s representation to the Company, which by the Purchaser’s execution of
this Agreement, the Purchaser hereby confirms, that the Shares to be acquired by the Purchaser will
be acquired for investment for the Purchaser’s own account, not as a nominee or agent, and not with
a view to the resale or distribution of any part thereof, and that the Purchaser has no present
intention of selling, granting any participation in, or otherwise distributing the same. By
executing this Agreement, the Purchaser further represents that the Purchaser does not presently
have any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant
participations to such Person or to any third Person, with respect to any of the Shares. The
Purchaser has not been formed for the specific purpose of acquiring the Shares.

          4.3. Disclosure of Information. The Purchaser has had an opportunity to ask questions
of and receive answers from the Company and its management regarding the Company’s business,
management, financial affairs and the terms and conditions of the offering of the Shares and the
Purchaser has conducted, to its satisfaction, its own independent investigation of the condition,
operations and business of the Company. The Purchaser has been provided access to and an
opportunity to review all information and documents (to the extent the Company possessed such
information or documents or could acquire it without unreasonable effort or expense) respecting the
Company in order for the Purchaser to make its own determination to proceed with the transactions
contemplated by this Agreement and with the limited representations, warranties and remedies
specifically bargained for in Article 3.

          4.4. Restricted Securities. The Purchaser understands that the Shares have not been,
and will not be, registered under the Securities Act, and are being issued by reason of a

4

 

specific exemption from the registration provisions of the Securities Act which depends upon,
among other things, the bona fide nature of the investment intent and the accuracy of the
Purchaser’s representations as expressed herein. The Purchaser understands that the Shares are
“restricted securities” under applicable U.S. federal and state securities laws and that, pursuant
to these laws, the Purchaser must hold the Shares indefinitely unless they are registered with the
Securities and Exchange Commission and qualified by state authorities, or an exemption from such
registration and qualification requirements is available. The Purchaser acknowledges that the
Company has no obligation to register or qualify the Shares for resale. The Purchaser further
acknowledges that if an exemption from registration or qualification is available, it may be
conditioned on various requirements, including the time and manner of sale and the holding period
for the Shares, and on requirements relating to the Company which are outside of the Purchaser’s
control, and which the Company is under no obligation and may not be able to satisfy.

          4.5. No Public Market. The Purchaser understands that no public market now exists for
the Shares, and that the Company has made no assurances that a public market will ever exist for
the Shares.

          4.6. Legends. The Purchaser understands that the Shares and any securities issued in
respect of or exchange for the Shares, may bear one or all of the following legends:

               (a) “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE
NOT BEEN REGISTERED PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF
ANY STATE OR OTHER JURISDICTION. ABSENT SUCH REGISTRATION OR AN EXEMPTION FROM THE REQUIREMENT
THEREFOR, NO TRANSFER OF THESE SHARES OR ANY INTEREST THEREIN MAY BE MADE.”

               (b) Any legend set forth in, or required by, the other Transaction Agreements.

               (c) Any legend required by the securities laws of any state to the extent such laws are
applicable to the Shares represented by the certificate so legended.

          4.7. Accredited Investor. The Purchaser is an accredited investor as defined in Rule
501(a) of Regulation D promulgated under the Securities Act.

          4.8. Foreign Investor. The Purchaser hereby represents that it has satisfied itself
as to the full observance of the laws of Israel in connection with the offer for and purchase of
the Shares or any use of this Agreement, including (i) the legal requirements within Israel for the
purchase of the Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii)
any governmental or other consents that may need to be obtained, and (iv) the income tax and other
tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or
transfer of the Shares. The Purchaser’s payment for and continued beneficial ownership of the
Shares will not violate any applicable securities or other laws of Israel.

5

 

     5. Miscellaneous.

          5.1. Successors and Assigns. The terms and conditions of this Agreement shall inure
to the benefit of and be binding upon the respective successors and permitted assigns of the
parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other
than the parties hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as expressly provided in
this Agreement.

          5.2. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Texas, regardless of the laws that might otherwise govern under
applicable principles of conflicts of law.

          5.3. Counterparts; Facsimile. This Agreement may be executed and delivered by
facsimile signature and in two or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument.

          5.4. Titles and Subtitles. The titles and subtitles used in this Agreement are used
for convenience only and are not to be considered in construing or interpreting this Agreement.

          5.5. Notices. All notices and other communications given or made pursuant to this
Agreement shall be in writing and shall be deemed effectively given: (a) upon personal delivery to
the party to be notified, (b) five business days after having been sent by certified mail, return
receipt requested, postage prepaid, or (d) two business days after deposit with an internationally
recognized express courier service, specifying same day or next business day delivery, with written
verification of receipt. All communications shall be sent to the respective parties at their
address as set forth on the signature page, or to such address as subsequently modified by written
notice given in accordance with this Section 5.5.

          5.6. Amendments and Waivers. Any term of this Agreement may be amended, terminated or
waived only with the written consent of the Company and the holders of at least a majority of the
then-outstanding Shares. Any amendment or waiver effected in accordance with this Section
5.6 shall be binding upon the Purchaser and each transferee of the Shares, each future holder
of all such securities, and the Company.

          5.7. Severability. Whenever possible, each provision or portion of any provision of
this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision or portion of any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such
invalidity, illegality or unenforceability shall not affect the validity, legality or
enforceability of any other provision or portion of any provision in such jurisdiction, and this
Agreement shall be reformed, construed and enforced in such jurisdiction in such manner as will
effect as nearly as lawfully possible the purposes and intent of such invalid, illegal or
unenforceable provision.

          5.8. Delays or Omissions. No delay or omission to exercise any right, power or remedy
accruing to any party under this Agreement, upon any breach or default of any other

6

 

party under this Agreement, shall impair any such right, power or remedy of such non-breaching
or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or
an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall
any waiver of any single breach or default be deemed a waiver of any other breach or default
theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of any party of any breach or default under this Agreement, or any waiver on
the part of any party of any provisions or conditions of this Agreement, must be in writing and
shall be effective only to the extent specifically set forth in such writing. All remedies, either
under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not
alternative.

          5.9. Entire Agreement. This Agreement (including the Exhibits hereto) and the other
Transaction Agreements constitute the full and entire understanding and agreement between the
parties with respect to the subject matter hereof, and any other written or oral agreement relating
to the subject matter hereof existing between the parties are expressly canceled.

          5.10. Further Assurances. From and after the date of this Agreement, upon the request
of the Purchaser or the Company, the Company and the Purchaser shall execute and deliver such
instruments, documents and other writings as may be reasonably necessary or desirable to confirm
and carry out and to effectuate fully the intent and purposes of this Agreement and the
transactions contemplated hereby.

          5.11. Certain Interpretive Matters.

               (a) Unless the context otherwise requires, (i) all references to Sections, Articles or
Exhibits are to be Sections, Articles or Exhibits of or to this Agreement, (ii) each term defined
in this Agreement has the meaning assigned to it, (iii) words in the singular include the plural
and vice versa, (iv) the term “including” means “including without limitation,” (v) all references
to $ or dollar amounts will be to lawful currency of the United States, (vi) to the extent the term
“day” or “days” is used, it shall mean calendar days, and (vi) the words “herein,” “hereby,”
“hereof,” and “hereunder” and other words of similar import refer to this Agreement as a whole and
not to any particular article, section, paragraph or other subdivision of this Agreement.

               (b) No provision of this Agreement will be interpreted in favor of, or against, any of the
parties hereto by reason of the extent to which any such party or its counsel participated in the
drafting thereof or by reason of the extent to which any such provision is inconsistent with any
prior draft hereof or thereof.

          5.12. Independent Investigation. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES
EXPRESSLY MADE BY THE COMPANY IN THIS AGREEMENT, THE PURCHASER ACKNOWLEDGES AND AGREES THAT: (A)
THERE ARE NO REPRESENTATIONS, WARRANTIES, STATEMENTS, ASSURANCES OR GUARANTEES MADE BY THE COMPANY
OR ANY OF ITS AFFILIATES, EXPRESS OR IMPLIED, AS TO (I) THE ASSETS OF THE COMPANY OR ANY SUBSIDIARY
OF THE COMPANY, OR (II) THE LIABILITIES, BUSINESS, RESULTS OF OPERATIONS, CONDITION

7

 

(FINANCIAL, ENVIRONMENTAL OR OTHERWISE) OR PROSPECTS RELATING TO THE BUSINESS OF THE COMPANY
OR ANY SUBSIDIARY OF THE COMPANY, AND THAT IN MAKING ITS DECISION TO ENTER INTO THIS AGREEMENT AND
TO CONSUMMATE THE PURCHASE OF THE SHARES, THE PURCHASER HAS RELIED AND WILL RELY SOLELY UPON ITS
OWN INDEPENDENT INVESTIGATION, VERIFICATION, ANALYSIS AND EVALUATION; (B) THE COMPANY DISCLAIMS ALL
LIABILITY AND RESPONSIBILITY FOR ANY OTHER REPRESENTATION, WARRANTY, STATEMENT OR INFORMATION
ORALLY OR IN WRITING MADE OR COMMUNICATED TO THE PURCHASER INCLUDING ANY OPINION, INFORMATION OR
ADVICE WHICH MAY HAVE BEEN PROVIDED TO THE PURCHASER BY OR ON BEHALF OF THE COMPANY OR ANY
AFFILIATES OF THE COMPANY, (C) NEITHER THE COMPANY NOR ANY AFFILIATE, AGENT, OR REPRESENTATIVE OF
THE COMPANY HAS MADE, AND THE PURCHASER HEREBY EXPRESSLY DISCLAIMS AND NEGATES, ANY IMPLIED OR
EXPRESS WARRANTY OF MERCHANTABILITY, FITNESS (BOTH GENERALLY AND FOR A PARTICULAR PURPOSE), OR
CONFORMITY TO MODELS OR SAMPLES AND ANY OTHER REPRESENTATION OR WARRANTY, EXPRESS, STATUTORY OR
IMPLIED, RELATING TO THE ASSETS OF THE COMPANY OR ANY SUBSIDIARY OF THE COMPANY; AND (D) THE
COMPANY MAKES NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE USE OR CONDITION (INCLUDING
ENVIRONMENTAL USE OR CONDITION), THE PRESENCE OR ABSENCE OF HAZARDOUS MATERIALS AT, ON, UNDER OR
FROM ANY PORTION OF THE ASSETS OF THE COMPANY OR ANY SUBSIDIARY OF THE COMPANY, COMPLIANCE WITH
APPLICABLE STATUTES, LAWS, CODES, ORDINANCES, REGULATIONS OR REQUIREMENTS RELATING TO LEASING,
ZONING, SUBDIVISION, PLANNING, LAND USE, BUILDING, FIRE, SAFETY, HEALTH OR ENVIRONMENTAL MATTERS,
COMPLIANCE WITH COVENANTS, CONDITIONS AND RESTRICTIONS (WHETHER OR NOT OF RECORD), OTHER
INTERNATIONAL, NATIONAL, REGIONAL, FEDERAL, STATE, PROVINCIAL OR LOCAL REQUIREMENTS OR OTHER
STATUTES, LAWS, CODES, ORDINANCES, REGULATIONS OR REQUIREMENTS, INCLUDING ENVIRONMENTAL HEALTH AND
SAFETY LAWS AND PERMITS.

[Remainder of Page Intentionally Left Blank]

8

 

     IN WITNESS WHEREOF, the parties have executed this Series A Stock Purchase Agreement as of the
date first written above.

	 	 	 	 	 
	 	COMPANY:

ALON REFINING LOUISIANA, INC.

 	 
	 	By:  	/s/ Jeff D. Morris
 	 
	 	 	Name:  	Jeff D. Morris 	 
	 	 	Title:  	President and CEO 	 
	 
	 	Address:

7616 LBJ Freeway, Suite 300

Dallas, Texas 75251

Attention: General Counsel

 	 
	 	 	 
	 	PURCHASER:

ALON ISRAEL OIL COMPANY, LTD.

 	 
	 	By:  	/s/ Yizhak Bader
 	 
	 	 	Name:  	Yizhak Bader 	 
	 	 	Title:  	Chairman of the Board of Directors 	 
	 
	 	Address:

Europark (France Building)

P.O.B. 10

Kibbutz Yakum, Israel 60972

Attention: General Counsel

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