Document:

exv10w106

Exhibit 10.106

WARRANT AGREEMENT

THIS
WARRANT AGREEMENT (the “Agreement”), is made as of the 14th day of March, 2011 BY AND BETWEEN

	(1)	 	Alon USA Energy, Inc. (“Alon USA”), a Delaware corporation listed on the NYSE under the
symbol “ALJ”, having its registered office at 7616 LBJ Freeway, Suite 300, Dallas, Texas
75251;

	(2)	 	Alon Brands, Inc. (“Alon Brands”), a Delaware corporation, having its registered office
at 7616 LBJ Freeway, 3rd Floor, Dallas, Texas 75251;

	(3)	 	Alon Israel Oil Company, Ltd., an Israeli limited liability company (the “Investor”).

In connection with the Loan Agreement (the “Loan Agreement”) between Alon Brands and the Investor
dated February 21, 2011, pursuant to which the Investor has made a loan to Alon Brands, Alon USA
agrees to grant the Investor Warrants (the “Warrants”) to purchase up to 1,237,113 shares of
Common Stock of Alon USA, par value $0.01 per share (“Common Stock”), for an aggregate purchase
price of up to US$12,000,000, all subject to the terms and conditions hereof.

In consideration of the foregoing and for the purpose of defining the terms and provisions of the
Warrants and the respective rights and obligations thereunder, Alon USA, Alon Brands and the
Investor, for value received, hereby agree as follows:

1. Issue of Warrant.

1.1 General. Alon USA hereby grants to the Investor Warrants to purchase up to
1,237,113 shares of Common Stock (such number of shares of Common Stock as adjusted as set forth
below, the “Warrant Shares”), for an aggregate purchase price of up to US$12,000,000 (such amount
as adjusted as set forth below, the “Warrant Amount”), which aggregate purchase price shall be
reduced (but not below zero), at the time of each exchange of Warrants for warrants to purchase
shares of Brands Common Stock (as defined below) as contemplated by Section 8 below, by an amount
equal to the aggregate Exchange Amount (as defined below) as to the Warrants so exchanged at any
such time.

If the Investor elects not to postpone a scheduled payment of a portion of the principal
amount of the Loan (as defined in the Loan Agreement) pursuant to Section 5(a) of the Loan
Agreement, then upon payment of such portion of the principal amount of the Loan to the Investor in
full, the Warrant Amount (as adjusted to date as contemplated by this Agreement) shall be reduced
(but not below zero) by an amount equal to such Warrant Amount (as adjusted to date as contemplated
by this Agreement) multiplied by a fraction, the numerator of which shall be the principal amount
of the Loan being repaid at such

 

 

scheduled repayment date and the denominator of which shall be the outstanding principal amount of
the Loan immediately prior to the repayment of such principal amount of the Loan, and the number of
the Warrant Shares shall be proportionately reduced to reflect any reduction of the Warrant Amount.

For the avoidance of doubt, (i) any Voluntary Prepayment (as defined in the Loan Agreement) of the
Loan, (ii) any repayment of the Loan due to acceleration of the Loan upon an Event of Default (as
defined in the Loan Agreement), or (iii) any repayment of the Loan upon an Exit Event (as defined
in the Loan Agreement), shall not affect the Warrants or the Alon Brands Warrants, in any manner
reduce the number of shares of common stock underlying the Warrants and the Alon Brands Warrants
and shall not shorten the Exercise Period (as defined below) for any Warrants or the exercise
period for any Alon Brand Warrants.

1.2 Registration. The Warrants shall be registered on the books of Alon USA when issued
in the name of the Investor to which such Warrants are issued.

1.3 Limited Rights of Warrant-Holder. Except as expressly set forth below or in any
other agreement between Alon USA and the Investor, nothing contained in this Agreement or in the
Warrants shall, prior to an exercise thereof, be construed as conferring upon the Investor and the
Permitted Transferees (as defined in the Loan Agreement) to which any of the Warrants is
transferred or assigned (collectively, the “Warrant-Holders”) any rights as a shareholder of Alon
USA, including (without limitation) the right to vote the Warrant Shares, receive dividends or
other distributions on or in respect of the Warrant Shares, or consent to, or receive notices as a
shareholder in respect of any meeting of shareholders for, the election of directors of Alon USA or
any other matter.

2. Exercise; Exercise Price.

2.1 The exercise price per each Warrant Share shall be equal to 18.0% over the average reported
closing price of a share of Alon USA’s Common Stock on the New York Stock Exchange during the
forty-five (45) calendar days immediately preceding February 21, 2011 (the date of execution of the
Loan Agreement), as adjusted from time to time pursuant to the terms set forth herein (the
“Exercise Price”).

2.2 Exercise on a Net-Issuance Basis.

In lieu of payment to Alon USA of the Exercise Price per Warrant Share in cash, as set forth in
Subsection 2.1 above, a Warrant-Holder may exercise the Warrants held by it to acquire the number
of shares of Common Stock calculated pursuant to the following

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formula, by delivering the Warrant Certificate (as defined below) to Alon USA, accompanied by a
written notice of exercise, specifying the number of shares for which the Warrant-Holder desires to
exercise the Warrant:

	 	 	 	 	 	 	 

	 

	 	X =
	 	Y(A - B)	 	 
	 

	 	 	 

A
	 	 

Where:

X = the number of Warrant Shares to be issued to the Warrant-Holder;

Y = the number of Warrant Shares with respect to which the Warrant-Holder desires to exercise the
Warrant;

A = the Fair Market Value (as defined below) of one Warrant Share; and

B = the Exercise Price of a Warrant Share, as adjusted.

“Fair Market Value” of a Warrant Share shall mean:

(i) the average closing price of a share of Alon USA’s Common Stock, as reported on the principal
stock exchange on which Alon USA’s shares are traded at the time of the exercise of the Warrants
for the ten (10) consecutive trading days immediately preceding the delivery of the Warrant
Certificate by the Warrant-Holder to Alon USA; or

(ii) If the Fair Market Value for the Warrant Shares cannot be determined in the manner set forth
in (i) above, then such Fair Market Value shall be as determined in good faith by Alon USA and the
Warrant-Holders exercising the Warrants as to which the determination of Fair Market Value is being
made or, if Alon USA and such Warrant-Holders fail to reach an agreement, by any third party
mutually agreed to by Alon USA and such Warrant-Holders.

2.3 Conditional Exercise. In the event that a Warrant-Holder notifies Alon USA of its
intention to exercise the Warrant (or any portion thereof) upon the occurrence or consummation of
an Exit Event (as defined below), then such Warrant-Holder shall be deemed to have conditioned such
exercise upon the consummation of such Exit Event and, in such case, the Warrant-Holder will only
be required to pay the applicable Exercise Price (or exercise on a net-issuance basis as described
in Section 2.2, as applicable) if, and at such time as, the Exit Event actually occurs or is
actually consummated.

     For purposes of the Warrants, “Exit Event” means (i) an M&A Transaction (as defined below), or
(ii) any transaction or a series of related transactions the result of which is that the holders of
all of the outstanding shares of Alon USA’s common stock immediately prior to the consummation of
such transaction or series of related transactions own less than 51% of all of the outstanding
shares of Alon USA’s common stock immediately following the consummation of such transaction or
series of transactions, and “M&A Transaction” means (i) the consolidation of Alon USA with, or a
merger with or into, any third party, following which the holders of all of the outstanding shares
of Alon USA’s common stock immediately prior to such transaction

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will own less than 51% of the surviving entity immediately following such transaction, or (ii)
an acquisition by, or other transfer to, one or more unaffiliated third parties of all or
substantially all of Alon USA’s assets.

3. Exercise Period. Subject to the prior receipt by Alon USA of approval of the
holders of a majority of the Alon USA Common Stock with respect to the issuance of the Warrants and
the Warrant Shares in accordance with the requirements of the New York Stock Exchange, the
Warrant-Holders may exercise part or all of the Warrants at any time, and from time to time, in
accordance with the provisions of this Agreement, during the period commencing on the Closing Date
(as defined in the Loan Agreement) and terminating on the fifth anniversary thereof (the “Exercise
Period”).

4. Warrant Shares.

4.1 Reservation of Warrant Shares. Alon USA represents that it has reserved and shall
at all times keep reserved, for so long as any Warrant remains outstanding, out of its authorized
share capital, such number of shares of Common Stock as may be subject to purchase under the
outstanding Warrants.

4.2 Exercise of Warrants; Issue of Warrant Shares.

(a) The Warrant-Holder shall exercise the Warrant (or any portion thereof) by delivering to Alon
USA a duly executed Purchase Form, a form of which is attached to this Agreement.

(b) Within two (2) business days following surrender of the Warrant Certificate and (unless the
Warrant-Holder elects to exercise the Warrants on a net-issuance basis) payment of the Exercise
Price as set forth herein, Alon USA shall issue and cause to be delivered to the Warrant-Holder or,
upon the written order of a Warrant-Holder and delivery of a notice, in the form attached hereto,
of an assignment of the Warrants, to any Permitted Transferee (as defined in the Loan Agreement) as
such Warrant-Holder may designate, a certificate or certificates (the “Warrant Share Certificate”)
representing the number of Warrant Shares so purchased upon the exercise of the Warrant, together
with cash, as provided in Section 5.5 hereof, in respect of any fractional Warrant Shares otherwise
issuable upon such surrender.

(c) Such Warrant Share Certificate or Certificates shall be deemed to have been issued and any
person so designated to be named therein shall be deemed to have become a holder of such Warrant
Shares as of the date of surrender of the Warrant Certificate representing the Warrants being
exercised and payment of the Exercise Price, to the extent applicable, notwithstanding that the
Warrant Share Certificate or Certificates representing such securities shall not actually have been
delivered or that the stock transfer books of Alon USA shall then be closed.

(d) Each Warrant shall be exercisable, at the election of the Warrant-Holder, either in full or
from time to time in part and, in the event of a partial exercise of the Warrant at any time prior
to the expiry of the Exercise Period, a new certificate evidencing the right

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to purchase the remaining number of shares of Common Stock applicable to the Warrant will be issued
to the Warrant-Holder by Alon USA.

5. Adjustment.

5.1. Adjustment of Exercise Price and Number of Warrant Shares. The Exercise Price
and/or the number and type of securities purchasable upon the exercise of the Warrants, as
applicable, shall be subject to adjustment from time to time as provided in Section 1.1 above and
upon the happening of certain events, as follows:

          (i) Adjustment Upon a Consolidation or Merger. In the event that Alon USA shall
complete an M&A Transaction, then, in each such case, the Warrant-Holders shall, upon any exercise
of the Warrants, at any time after the consummation of such M&A Transaction, be entitled to receive
upon the exercise of the Warrants, in lieu of the Warrant Shares or other securities and property
receivable upon the exercise of the Warrants prior to such consummation, the shares or other
securities or property to which the Warrant-Holders would have been entitled upon the consummation
of such M&A Transaction if the Warrant-Holders had exercised the Warrants immediately prior
thereto, all subject to further adjustment as provided in this Section, and the resulting,
surviving, purchasing or successor corporation or other entity in such M&A Transaction (if not Alon
USA) shall duly execute and deliver to the Warrant-Holders supplements hereto acknowledging such
corporation’s or entity’s obligations under the Warrants; and in each such case, the terms of the
Warrants (including exercisability, transfer and adjustment provisions of the Warrants) shall be
applicable to the shares or other securities or property receivable upon the exercise of the
Warrants after the consummation of such M&A Transaction, with such adjustments in price and the
number or amount of securities to be acquired as shall be consistent with the terms of such M&A
Transaction.

          (ii) Adjustment Upon Issuance of Common Stock Equivalents. If Alon USA at any
time shall pay a dividend payable in additional shares of Common Stock or other securities or
rights convertible into, or entitling the holder thereof to receive directly or indirectly,
additional shares of Common Stock (hereinafter referred to as the “Common Stock Equivalents”), then
the Exercise Price and the number of securities purchasable upon the exercise of the Warrant shall
be adjusted, as of the date Alon USA shall fix as the record date for the purpose of receiving such
dividend (or if no such record date is fixed, as at the date of such payment), to that price
determined by multiplying the Exercise Price by a fraction, (a) the numerator of which shall be the
total number of shares of Common Stock outstanding immediately prior to such dividend, and (b) the
denominator of which shall be the total number of shares of Common Stock outstanding immediately
after the payment of such dividend, including those issuable with respect to such Common Stock
Equivalents.

          (iii) Adjustment Upon Payment of Special Cash Dividends. If, in any fiscal
quarter of Alon USA prior to the exercise of the Warrants in full, Alon USA shall distribute a
dividend, whether payable out of earnings or surplus legally available for dividends, or as a
dividend in liquidation or partial liquidation or by way of return of capital, then the Exercise
Price shall be reduced by an amount equal to the Dollar amount

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of such per share dividend distribution; provided, however that following the third
anniversary of the Closing, an adjustment shall only be made for dividends in an amount exceeding a
regularly scheduled dividend of 4 cents ($0.04) per share (such per share amount to be adjusted for
stock splits, stock combinations and like events).

          (iv) Adjustment Upon Reorganization. If Alon USA shall subdivide or combine its
shares of Common Stock, the Exercise Price shall be proportionately reduced in case of subdivision
of shares (and the number of shares of Common Stock purchasable upon the exercise of the Warrant
shall be proportionately increased), as at the effective date of such subdivision, or shall be
proportionately increased in the case of combination of shares (and the number of shares of Common
Stock purchasable upon the exercise of the Warrant shall be proportionately reduced), as at the
effective date of such combination.

5.2 No Impairment. Alon USA will not, through any reorganization, recapitalization,
transfer of assets, consolidation, merger, dissolution, issue or sale of securities, amendment of
its certificate of incorporation, by-laws or any other organizational document, or any other
voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by Alon USA, but will at all times in good faith assist in the
carrying out of all the provisions of the Warrants and in the taking of all such action as may be
necessary or appropriate in order to protect the rights of the Warrant-Holders against
impairment.

5.3 Notice of Adjustments. Upon the occurrence of each adjustment or readjustment
of the Exercise Price pursuant to the provisions contained herein, Alon USA, at its expense, shall
promptly compute such adjustment or readjustment in accordance with the terms hereof and prepare
and furnish to the Warrant-Holders a certificate setting forth each adjustment or readjustment and
showing in detail the facts upon which such adjustment or readjustment is based.

5.4 Notice of Record Date. In the event of any taking by Alon USA of a record of the
holders of any class of securities for the purpose of determining the holders thereof who are
entitled to receive any dividend (including a cash dividend) or other distribution, any right to
subscribe for, purchase or otherwise acquire any shares of any class or any other securities or
property, or to receive any other right, Alon USA shall mail to the Warrant-Holders a notice, which
shall be sent simultaneously with the notice sent to other shareholders of Alon USA, specifying the
date on which any such record is to be taken for the purpose of such dividend, distribution or
right, and the amount and character of such dividend, distribution or right.

5.5 No Fractional Shares. No fractional shares shall be issued upon exercise of all or
any portion of the Warrant, and the number of Warrant Shares to be issued shall be rounded to the
nearest whole share (with cash being paid by Alon USA for any unissued fractional shares at a rate
equal to the difference between the Fair Market Value of a share of Common Stock net of the
purchase price for a share of Common Stock paid in

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connection with such exercise of the Warrant).

6. Representations and Warranties. Alon USA represents and warrants to the Warrant-Holders
as follows:

          (i) The Warrants have been duly authorized and executed by Alon USA and are valid and binding
obligations of Alon USA enforceable against Alon USA in accordance with their terms.

          (ii) The Warrant Shares are duly authorized and reserved for issuance by Alon USA and, when
issued in accordance with the terms hereof against receipt of payment in full of the purchase price
for such Warrant Shares (to the extent not exercised on a net-issuance basis), will be validly
issued, fully paid and nonassessable and not subject to any preemptive rights.

          (iii) The execution and delivery of the Warrants are not, and the issuance of the Warrant
Shares upon exercise of the Warrants in accordance with the terms hereof will not be, inconsistent
with Alon USA’s certificate of incorporation or by-laws, and, so long as each Investor’s
representations and warranties in the Loan Agreement are accurate and each Investor and Permitted
Transferee to which any of the Warrants are transferred performs the obligations set forth in
Section 2A(g) of the Loan Agreement and each agreement and undertaking of a Permitted Transferee
entered into or given thereunder with respect to the issuance, offer, sale and transfer of the
Warrants and the Warrant Shares, do not and will not contravene any law, governmental rule or
regulation, judgment or order applicable to Alon USA.

          (iv) During the three year period immediately prior to the date hereof, Alon USA has filed
all forms, reports, statements and other documents required to be filed by it during such period
with the Securities and Exchange Commission (“SEC”, and “SEC Reports”, respectively). As of their
respective filing or publication dates, the SEC Reports complied in all material respects with the
requirements of the United States Securities Exchange Act of 1934 (the “Exchange Act”) and the
United States Securities Act of 1933, as amended (the “Securities Act”), applicable to Alon USA.
The SEC Reports did not at the time they were filed or published, respectively, contain any
misstatement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading.

          (v) The audited consolidated financial statements of Alon USA included in the SEC Reports
complied with applicable accounting requirements and with the published rules and regulations of
the SEC with respect thereto as in effect at the time of filing. The financial statements,
including all related notes and schedules, contained in the SEC Reports (or incorporated by
reference therein) fairly presented the consolidated financial position of Alon USA and its
consolidated subsidiaries as at the respective dates thereof and the consolidated results of
operations and cash flows of Alon USA and its consolidated subsidiaries for the periods covered by
such financial statements, in

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accordance with United States generally accepted accounting principles as in effect on the dates of
issuance of such financial statements.

7. Registration Rights. Alon USA previously entered into a registration rights agreement
with the Investor in connection with Alon USA’s initial public offering, and Alon USA acknowledges
that the registration rights provided under such registration rights agreement shall extend to the
Warrant Shares to the same extent as those registration rights extend to other shares of the Common
Stock owned by the Investor from time to time.

8. Exchange into Warrants of Alon Brands.

Alon Brands will notify the Investor in writing of a contemplated underwritten initial public
offering of Alon Brands’ shares of Common Stock (“Brands’ IPO”), which notice shall set forth the
date on which Alon Brands intends to commence printing the initial preliminary prospectus relating
to the Brands IPO (the “Intended Print Date”). Alon Brands shall give the Investor such notice as
much in advance of the Intended Print Date as is reasonably practicable but in no event later than
ten Business Days before the Intended Print Date. At any time and from time to time following the
Closing and not later than the fifth Business Day preceding the Intended Print Date, the Investor
may notify Alon USA and Alon Brands in writing (the “Exchange Notice”) of their election to
exchange any or all of the Warrants into warrants to purchase shares of common stock of Alon
Brands, par value $0.01 per share (“Brands Common Stock”). In such Exchange Notice, the Investor
will specify the portion of the Warrant Amount with respect to which the exchange is to be effected
(the “Exchange Amount”). By way of example, if the Investor chooses to exchange 50% of the Warrant
Amount into a warrant to purchase Brands Common Stock, the number of Warrant Shares underlying this
Warrant shall be reduced to 618,556 and the “Warrant Amount” in the warrant to purchase Brands
Common Stock shall be $6,000,000. In the event that the Investor does not notify Alon USA and Alon
Brands of its election to exchange any of the Warrants into warrants to purchase Brands Common
Stock, then all Warrants will continue to be exercisable into shares of common stock of Alon USA.

In the event that an Investor notifies Alon USA and Alon Brands in an Exchange Notice of its
intention to exchange its Warrant (or any portion thereof) upon Brands’ IPO, such Investor shall be
deemed to have conditioned such exchange upon the consummation of such Brands’ IPO and if such
Brands’ IPO shall have not been consummated within 60 days following the date of such Exchange
Notice, then upon the lapse of such 60-day period the Exchange Notice shall be deemed to have
automatically terminated and shall have no further force and effect and Alon Brands will be
obligated to notify the Investor of any Brands’ IPO contemplated following such date, in which case
the parties shall follow the same procedures as set forth above with respect to such Brands’ IPO.

Within 3 Business Days following the delivery of the Exchange Notice:

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(a) Alon Brands and each Investor exchanging Warrants for warrants to purchase Brands Common Stock
shall enter into, execute and deliver a duly executed warrant agreement substantially in the form
attached hereto as Exhibit 8(a) (each a “Brands Warrant Agreement”) upon the surrender of
the Warrant Certificate representing each of the Warrants being exchanged for warrants to acquire
Brands Common Stock; provided that the aggregate warrant amount and the number of shares of Brands
Common Stock purchasable under such warrant (which are currently in blank in the from attached as
Exhibit 8(a)) shall be completed in accordance with the Exchange Notice and the terms of the Brands
Warrant Agreement and the Loan Agreement so entered into by Alon Brands and each such exchanging
Investor;

(b) Alon Brands will provide the Investor with a registration rights agreement duly executed by
Alon Brands in a form substantially similar to the Registration Rights Agreement (as defined in the
Loan Agreement), mutatis mutandis; and

(c) if applicable, Alon USA will provide each Investor exchanging Warrants for warrants to purchase
Brands Common Stock pursuant to such Exchange Notice with a new Warrant Certificate, which shall be
substantially in the form attached hereto as Exhibit 1 and shall evidence Warrants to purchase an
aggregate number of shares of Common Stock that may be purchased with the Warrant Amount allocable
to the Warrant Certificate surrendered as contemplated by clause (a) immediately above, net of the
Exchange Amount set forth in the related Exchange Notice and relating to the exchange of the
Warrants represented by such Warrant Certificate, divided by the Exercise Price then in effect.

9. Miscellaneous.

9.1 Notices. Any notice pursuant to this Agreement by Alon USA, Alon Brands or by the
Warrant-Holders or a holder of Warrant Shares shall be in writing and shall be deemed to have been
duly given (i) if given by facsimile transmission on the business day on which such transmission is
sent and confirmed, (ii) if given by air courier, two business days following the date it was sent,
or (iii) if mailed by registered mail, return receipt requested, five business days following the
date it was mailed, to the addresses set forth above.

Each party may from time to time change the address or fax number to which notices to it are to be
delivered or mailed hereunder by notice in accordance herewith to the other party.

9.2 Successors and Assigns. All the covenants and provisions of this Agreement by or
for the benefit of Alon USA, Alon Brands, the Warrant-Holders, or the holders of Warrant Shares
shall bind and inure to the benefit of their respective successors and assigns. No assignment of
the Warrants or any rights or interest in or under this Agreement shall be made except to a
Permitted Transferee who shall have agreed to be bound by and to comply with the terms of this
Agreement and by the terms of Section 2A(g) of the Loan Agreement.

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9.3 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware. The parties hereto irrevocably submit to the exclusive
jurisdiction of the district court of Tel Aviv Jaffa, Israel in any action connected with this
Agreement.

9.4 Benefits of this Agreement. Nothing in this Agreement shall be construed to give
to any person or corporation other than Alon USA, Alon Brands, the Warrant-Holders and the holders
of Warrant Shares any legal or equitable right, remedy or claim under this Agreement. This
Agreement shall be for the sole and exclusive benefit of Alon USA, Alon Brands, the Warrant-Holders
and the holders of Warrant Shares.

9.5 Form of Warrant. The text of the Warrant Certificate evidencing the Warrant (the
“Warrant Certificate”) and of the form of election to purchase Warrant Shares shall be
substantially as set forth in Exhibit 1 attached hereto. The Exercise Price and, accordingly,
number of Warrant Shares issuable upon exercise of the Warrant is subject to adjustment upon the
occurrence of certain events, all as herein provided.

9.6 Warrant Certificate.

9.6.1 Exchange of Certificate. Any Warrant Certificate may be exchanged for Warrant
Certificates entitling a Warrant-Holder, in the aggregate, to purchase on like terms an equal
number of Warrant Shares as the Warrant Certificate or Certificates surrendered then entitled such
Warrant-Holder to purchase. Any Warrant-Holder desiring to exchange a Warrant Certificate shall
make such request in writing delivered to Alon USA, and shall surrender the certificate evidencing
the Warrant to be so exchanged. Thereupon, Alon USA shall execute and deliver to the person
entitled thereto a new Warrant Certificate as so requested. If the Warrant Amount and/or the
Warrant Shares are adjusted as contemplated by this Agreement, at the request of Alon USA, each
Warrant-Holder then holding a Warrant Certificate shall surrender the Warrant Certificate or
Warrant Certificates held by it to Alon USA in exchange for a new Warrant Certificate reflecting
the adjusted Warrant Amount and/or Warrant Shares.

9.6.2 Mutilated or Missing Warrant. In case any Warrant Certificate or Certificates
shall be mutilated, lost, stolen or destroyed, Alon USA shall, at the request of the affected
Warrant-Holder, issue and deliver in exchange and substitution for and upon cancellation of the
mutilated certificate or certificates, or in lieu of and substitution for the certificate or
certificates lost, stolen or destroyed, a new Warrant Certificate or Certificate representing an
equivalent right or interest, but only upon receipt of evidence reasonably satisfactory to Alon USA
of such loss, theft or destruction of such Warrant Certificate and an agreement to indemnify Alon
USA against any loss, damage or liability it may suffer or have as a result of its issuance of the
replacement Warrant Certificate or Warrant Certificates, which agreement shall be executed by the
affected Warrant-Holder and be in a form reasonably satisfactory to Alon USA.

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9.7 Withholding Tax. If Alon USA shall be responsible to collect or withhold
any present and future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees
or other charges imposed by any U.S. Governmental Entity, including any interest, additions to tax
or penalties (“Taxes”) with respect to any income or gain (including amounts required to be
withheld on any payment of original issue discount related to the warrants) recognized by any
Warrant-Holder upon an exercise of a Warrant, Alon USA will withhold Taxes at the highest rate
required by United States law with respect to those partners in the Investor that shall not have
provided to the Investor and Alon USA such properly executed, timely tax certificates and forms as
Alon USA may reasonably request from time to time (including Form W-8BEN or W-8ECI (or a successor
form thereto)) claiming or asserting the right to an exemption from any Tax withholding or
reduction in rate of withholding under the benefit of an applicable and effective tax treaty. Alon
USA will withhold Taxes at the lowest possible rate (but not below zero) allowed under United
States law or applicable or effective tax treaty with respect to those partners of the Investor
that have provided such properly executed, timely tax certificates and forms. The Investor shall
provide to Alon USA such properly executed tax certificates and forms along with such properly
executed tax certificates and forms as Alon USA may reasonably request of the Investor from time to
time (including Form W-9 or Form W-8IMY or a successor form thereto). In any case, Alon USA shall
reasonably cooperate with the Investor for the purpose of recovery of any excess amounts of Tax
withheld and paid by Alon USA under the terms of this Section 9.7.

10. Compliance with Securities Laws.

          (i) Each Investor, and, by accepting a Warrant and permitting any request to be made for
Alon USA to register such Warrant in its name, each Warrant-Holder, makes to and for the benefit of
Alon USA each of the representations and warranties set forth in Section 2A(d), (e) and (g) of the
Loan Agreement to the same extent as if such representations and warranties were fully set forth
herein. Each Investor and each such Warrant-Holder further represents, by acceptance hereof, that,
as of the date hereof or, in the case of a Warrant-Holder who is a transferee of a Warrant, on the
date of its acceptance hereof, such Warrant-Holder is an “accredited investor” as such term is
defined in Rule 501(a) of Regulation D promulgated by the SEC under the Securities Act of 1933, as
amended (the “Securities Act”).

          (ii) Until sold in reliance on a effective registration statement under the Securities
Act, the Warrant Shares issued on exercise of the Warrants shall be subject to a stop transfer
order and the certificate or certificates representing the Warrant Shares shall bear the following
legend:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY
STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED, ASSIGNED, OR
OTHERWISE TRANSFERRED UNLESS (1) A

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REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE
SECURITIES ACT AND EACH APPLICABLE STATE SECURITIES LAWS, OR (2) THE
COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF THE SECURITIES,
WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT
SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED, OR OTHERWISE
TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS.

11. No Sales in Contravention of the Securities Act. Neither an Investor nor any
Warrant-Holder will offer for sale, solicit offers to purchase, sell, transfer, convey or assign or
distribute any of the Warrants or Warrant Shares in any manner that would violate or cause Alon USA
or Alon Brands to violate or to have violated the registration requirements of the Securities Act,
will make any transfer, conveyance or assignment of the Warrants or Warrant Shares on terms that
will cause the transferee or assignee of the Warrants or Warrant Shares to adhere to the terms of
this Section 11 and will not make any transfer, conveyance or assignment of any of the Warrants
without the prior approval of Alon USA, unless such transfer is made to a Permitted Transferee of
an Investor in a transaction not involving a sale (as defined in the Securities Act).

[Signature Page Follows]

-12-

 

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

	 	 	 	 	 
	 	Alon Israel Oil Company, Ltd.

 	 
	 	By:  	/s/ David Wiessman
 	 
	 	 	Name:  	David Wiessman 	 
	 	 	Title:  	President 	 
	 
	 	Alon USA Energy, Inc.

 	 
	 	By:  	/s/ Michael Oster
 	 
	 	 	Name:  	Michael Oster 	 
	 	 	Title:  	Senior Vice President of Mergers & Acquisitions 	 
	 
	 	Alon Brands, Inc.

 	 
	 	By:  	/s/ Michael Oster
 	 
	 	 	Name:  	Michael Oster 	 
	 	 	Title:  	Vice President 	 

-13-

 

EXHIBIT 1

NEITHER THE SECURITIES REPRESENTED HEREBY NOR THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED, ASSIGNED, OR OTHERWISE TRANSFERRED UNLESS
(1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY
APPLICABLE STATE SECURITIES LAWS, OR (2) THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER
OF THIS WARRANT OR SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE
COMPANY, THAT THIS WARRANT OR SUCH SECURITIES, AS APPLICABLE, MAY BE OFFERED, SOLD, PLEDGED,
ASSIGNED, OR OTHERWISE TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS.

THE TRANSFER OF THIS WARRANT IS RESTRICTED AS DESCRIBED IN THE RELATED WARRANT AGREEMENT.

Warrant Certificate No. ________

WARRANT TO PURCHASE SHARES OF COMMON STOCK

VOID AFTER 5:00 p.m. EASTERN STANDARD TIME, ON THE LAST DAY OF

THE EXERCISE PERIOD (AS DEFINED IN THE WARRANT AGREEMENT).

ALON USA ENERGY, INC. (“ALON USA”)

INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE

This certifies that, for value received, _____________ or its or its permitted assigns (the
“Warrant-Holder”), is entitled to purchase from Alon USA at any time during the Exercise Period (as
defined in the Warrant Agreement, dated ___________, 2011, between Alon USA, Alon Brands, Inc. and
Alon Israel Oil Company, Ltd. (the “Warrant Agreement”)) commencing at 9.00 a.m., Eastern Standard
Time, on the first day of the Exercise Period and ending at 5.00 p.m., Eastern Standard Time, on
the last day of the Exercise Period, up to __________ shares of Common Stock of Alon USA (the
“Warrant Shares”) at a purchase price per share of US$_____ (the “Exercise Price”). The number and
type of Warrant Shares evidenced hereby and the Exercise Price shall be subject to adjustment from
time to time as set forth in the Warrant Agreement. The terms of this Warrant are subject to the
terms and provisions contained in the Warrant Agreement. The Warrant evidenced hereby may be
exercised in whole or in part in accordance with the provisions of the Warrant Agreement.

-14-

 

Upon any partial exercise of the Warrant evidenced hereby, there shall be signed and issued, to the
Warrant-Holder effecting such partial exercise, a new Warrant Certificate in respect of the balance
of the Warrant Shares as to which the Warrant evidenced hereby shall not have been exercised. This
Warrant may be exchanged at by delivery to the office of Alon USA of this Warrant Certificate
properly endorsed for one or more new Warrants of the same aggregate number of shares of Common
Stock as hereby evidenced by the Warrant or Warrants exchanged. No fractional shares of Common
Stock will be issued upon the exercise of rights to purchase hereunder, but Alon USA shall pay the
cash value of any fraction upon the exercise of any part of this Warrant. This Warrant and any
interest herein may be transferred, assigned or conveyed only as provided in the Warrant Agreement.

	 	 	 	 	 
	 	Alon USA Energy, Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

-15-

 

ALON
USA ENERGY, INC.

PURCHASE FORM

Alon USA Energy, Inc.

7616 LBJ Freeway, Suite 300

Dallas, Texas 75251

The undersigned hereby irrevocably elects to exercise the right of purchase represented by the
Warrant Certificate with respect to ____ shares of Common Stock of Alon USA Energy Inc. (“Common
Stock”), at an Exercise Price calculated in accordance with the provisions of the Warrant
Agreement, dated _______ __, 2011, between Alon USA, Alon Brands, Inc. and Alon Israel Oil
Company, Ltd. and requests that certificates for the shares of Common Stock be
issued in the name of:

(name and address must be printed or typewritten)

____________________________

Name and I.D. number

____________________________

Address

____________________________

Address

and, if the shares of Common Stock shall be less than the total number of shares of Common Stock
that the Warrant-Holder is entitled to purchase pursuant to this Warrant, a new Warrant Certificate
shall be registered for the balance of the shares of Common Stock in the name of the undersigned
Warrant-Holder or its/his assignee as below indicated and delivered to the address stated below.

Dated: __________________

	 	 	 

	Name of Warrant-Holder or Assignee: _____________________________
	 	 
	 
	 	 
	(Please Print)
	 	 
	 
	 	 
	Address: _____________________________
	 	 
	              
_____________________________
	 	 
	Signature: _____________________________
	 	 

Note: The above signature must correspond with the name as written upon the face of this
Warrant Certificate in every particular, without alteration or enlargement or any change whatever,
unless this Warrant has been assigned.

Signature Witnessed: ______________________

-16-

 

ASSIGNMENT

(To be signed only upon assignment of Warrants)

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(name and address of assignee must be printed or typewritten)

                                                            
                    

                                                            
                    

                                                            
                    

the within Warrant, hereby irrevocably constituting and appointing ______ as its Attorney-in-Fact
to transfer said Warrant on the books of Alon USA Energy, Inc., with full power of substitution in
the premises.

	 	 	 	 	 
	 	 	 
	Dated: _____________ 	  	 	 
	 	 	Signature of Registered Holder 	 
	 	 	 	 
	 

Note: The signature of this assignment must correspond with the name as it appears upon the face of
the Warrant Certificate in every particular, without alteration or enlargement or any charge
whatever.

Signature Witnessed: ______________________

-17-exv10w107

Exhibit
10.107

REGISTRATION RIGHTS AGREEMENT

This
Registration Rights Agreement (this “Agreement”)
is made as of the 10th day of
March, 2011, by and among: (i) Alon USA Energy, Inc. (the “Company”), a corporation organized under
the laws of the State of Delaware whose shares are traded on the New York Stock Exchange, and (ii)
FIMI Opportunity IV, L.P., a Delaware limited partnership and FIMI Israel Opportunity IV, Limited
Partnership, a limited partnership formed under the laws of the State of Israel (including its
Permitted Transferees (as such term is defined below), the “Investor”).

WITNESSETH:

WHEREAS, the Investor holds warrants to purchase up to an aggregate of 1,855,670 shares of Common
Stock of the Company, par value $0.01 per share (the “Investor Warrants”).

WHEREAS, the Investor and the Company desire to set forth certain matters regarding the
registration rights of the shares of Common Stock of the Company underlying the Investor Warrant.

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the parties
hereby agree as follows:

	1.	 	DEFINITIONS; EFFECT OF AGREEMENT.
	 
	 	 	Definitions. As used herein, the following terms have the following
meanings:
	 
	 	 	“Commission” means the United States Securities and Exchange Commission, or any successor
federal agency thereto administering the Securities Act.
	 
	 	 	“Common Stock” means the common stock of the Company, par value US $0.01, subject to a
Reclassification Event.
	 
	 	 	“Form S-3” means Form S-3 under the Securities Act as in effect from time to time or any
registration form under the Securities Act subsequently adopted by the Commission in
substitution therefor.
	 
	 	 	“Holder” means any holder of Registrable Shares.
	 
	 	 	“Permitted Transferee” shall have the same meaning as set forth under the Loan Agreement
between Alon Brands, Inc. and the Investor dated as of the date hereof.
	 
	 	 	“Person” means an individual, fund, corporation, general partnership, limited partnership,
limited liability company, unincorporated association, trust, joint venture, governmental
agency, or other entity, whether domestic or foreign.

1

 

	 	 	“Reclassification Event” means any share combination or subdivision (split), issuance of
bonus shares or any other reclassification of the Company’s shares.
	 
	 	 	“Register”, “registered” and “registration” refer to a registration effected by filing a
registration statement in compliance with the Securities Act and the declaration or ordering
by the SEC of effectiveness of such registration statement.
	 
	 	 	“Registrable Shares” means shares of Common Stock of the Company held by the Investor and
its Permitted Transferees acquired pursuant to the exercise of the Investor Warrants and any
bonus shares and share dividends payable with respect to such shares. Notwithstanding the
foregoing, Registrable Shares shall not include shares of Common Stock (i) that were sold to
or through a broker or dealer or underwriter in a public distribution or a public securities
transaction in compliance with applicable federal and state securities laws or (ii) which
could be sold in transactions in compliance with Rule 144 within three (3) months of the
date of any request for registration.
	 
	 	 	“Rule 144” shall mean Rule 144 under the Securities Act or any successor or similar rule as
may be enacted by the Commission from time to time.
	 
	 	 	“Securities Act” means the United States Securities Act of 1933, as amended.

	2.	 	INCIDENTAL REGISTRATION.

	 	2.1.	 	If, at any time the Company proposes to register any of its equity
securities for sale by the Company and/or for sale by Alon Israel Oil Company,
Ltd. (the “Company’s Securities”), or for any other person, other than (a) in a
registration under Section 3 of this Agreement, (b) a registration on Form S-4
of the Commission or any successor form thereto or (c) a registration on Form
S-8 of the Commission or any successor form thereto, the Company shall give
notice to the Investor of such intention at least twenty (20) days prior to the
filing of the registration statement in connection with such registration. Upon
the written request of the Investor given to the Company within ten (10) days
after receipt of any such notice, the Company shall include in such
registration (subject to Section 2.2 below) all of the Registrable Shares
indicated in such request of the Investor, so as to permit the disposition of
the shares so requested. Such request of the Investor shall also provide the
names of the Holders of the Registrable Shares to be registered and specify the
proposed plan of distribution or other method of offer and sale of the
Registrable Shares as to which such request is made and the period over which
such Registrable Shares will be offered and sold.
	 
	 	2.2.	 	Notwithstanding any other provision of this Section 2:

2

 

	 	2.2.1.	 	if the offer and sale of securities being registered is one
involving an underwritten public offering of equity securities of the
Company being made at the election of the Company or another Person
and if the managing underwriter in connection with such underwritten
public offering of equity securities of the Company selected by the
Company or such another Person advises the Company in writing that in
its opinion (a) the number of securities requested to be included in
such registration by the Company, the Investor and any other Person or
Persons or (b) the kind or combination of securities that the Company,
the Investor and any other Person or Persons intend to include in such
offering would, in either case, adversely affect the success of such
offering, such underwriter’s ability to effect an orderly distribution
of such securities or the contemplated price of such securities, (i)
the Company will include in such registration: (A) first, the
Company’s Securities, (B) second, the number of Registrable Shares
requested to be included by the Investor and all other Persons
entitled to include equity securities of the Company in that
registration to the extent that, in the opinion of such underwriter,
all such equity securities can be included in such offering without
adversely affecting the orderly distribution of such securities or the
price at which they can be sold; provided, however, that if the
combination of securities to be offered pursuant to such registration
is a basis of such managing underwriter’s opinion, (x) the Registrable
Shares that shall be included in such registration and offering shall
be reduced as described in the immediately preceding clause (i) in
this Section 2.2.1 or (y) if such actions would, in the judgment of
the managing underwriter, be insufficient to substantially eliminate
the adverse effect or effects that inclusion of the Registrable Shares
requested to be included in such registration and offering would have
on such offering, such Registrable Shares shall be excluded entirely
from such registration and offering. The Registrable Shares and other
equity securities that are not a part of the Company’s Securities to
be included shall be included pro rata based on the number of
Registrable Securities and other equity securities requested to be
included by the Investor and other Persons.

	3.	 	DEMAND REGISTRATION.

	 	3.1.	 	At any time after the date hereof through the seventh anniversary of
the date hereof, the Investor may request in writing that all or part of its
Registrable Shares shall be registered under the Securities Act (each such
registration, a “Demand Registration”). Thereafter, the Company shall, as
promptly as

3

 

	 	 	 	practicable, and in any event within 3 (three) months of the written
request of the Investor, make commercially reasonable efforts to effect the
registration of all Registrable Shares indicated in the written request by
the Investor on the form customarily used for such purposes.
	 
	 	3.2.	 	The Investor shall be entitled to have an aggregate of two (2) Demand
Registrations.
	 
	 	3.3.	 	Notwithstanding any other provision of this Section 3, no request for a
Demand Registration shall be binding on the Company if: (i) the Company has
filed any registration statement for the registration of its equity securities
(other than on a Form S-8 or similar registration for employee shares) within
the previous one hundred and twenty (120) days or (ii) the anticipated gross
proceeds from the sale of the Registrable Shares to be included in the
Registration are less than an aggregate of Three Million United States Dollars
($3,000,000). In addition, if the Company shall furnish to the Investor a
certificate signed by the Chief Executive Officer of the Company stating that,
in the good faith judgment of the Board of Directors, it would be detrimental
to the Company for such registration statement to be filed and it is therefore
essential to defer the filing of such registration statement, the Company shall
have the right to defer such filing for a period of not more than one hundred
and eighty (180) days after receipt of the request of the Investor (the “Delay
Period”). The Company agrees that it shall not file any other registration
statement (other than a registration statement on Form S-8 or, if legally or
contractually required to do so, a registration statement on Form S-4) on
behalf of itself or any other party during such Delay Period.
	 
	 	3.4.	 	Any registration process begun pursuant to Section 3.1 in response to
the Investor’s request for a Demand Registration to occur shall count against
the available Demand Registrations, provided that any registration process
begun pursuant to Section 3.1 that is subsequently terminated at the request of
the Investor shall not count toward the available Demand Registrations set
forth in Section 3.2 above, if the request of the Investor for such termination
is based upon material adverse information relating to the Company or its
condition, business and prospects of which the Investor first became aware
after the time of its request with respect to such Demand Registration.
	 
	 	3.5.	 	The Company may include the Company’s Securities, including securities
of the Company held or beneficially owned by Alon Israel Oil Company Ltd. in
any registration statement relating to a Demand Registration and any S-3
registration as provided for in Section 3.6 below. Notwithstanding any other
provision of this Section 3, if the Investor advises the Company, in writing,
that, in the managing underwriter’s opinion, the number of securities requested
to be included in such registration exceeds the number that can be sold in such
offering without adversely affecting such underwriter’s ability to effect an
orderly distribution of such securities or materially affecting the
contemplated price of such securities, the Company will include in such
registration only the

4

 

	 	 	 	number of Registrable Shares requested by the Investor to be included that,
in the opinion of such underwriters, can be sold, in the registration.
	 
	 	3.6.	 	S-3 Registration. In any case that the Company shall receive
from the Investor a written request that the Company effect a registration on
Form S-3 with respect to Registrable Shares where the aggregate gross proceeds
from the sale of Registrable Shares equal to at least three million United
States Dollars ($3,000,000) and the Company shall be entitled to effect such
registration under applicable law, the Company shall use its commercially
reasonable efforts to effect the registration of all Registrable Shares as are
specified in the request; provided, however, that the Company shall not
be obligated to effect any such registration pursuant to this Section 3.6 (i)
if the Company has, within the eighteen (18) month period preceding the date of
such request, already effected one (1) registration for the Investor pursuant
to this Section 3.6 or (ii) after the seventh anniversary of the date hereof.
For such purpose, any such registration on Form S-3 will be counted for such
eighteen (18) month period.
	 
	 	3.7.	 	Maintenance of S-3 Eligibility. The Company undertakes that it
will, once having qualified for registration of its securities using Form S-3,
use its commercially reasonable efforts to make all filings and meet all other
requirements necessary to maintain such qualification for a period of two (2)
years.
	 
	 	3.8.	 	Black Out Periods. At any time when a registration statement
effected hereunder relating to Registrable Shares is effective, upon written
notice from the Company to the Investor that either: (i) the Board of Directors
of the Company, in its reasonable judgment, resolves that the Investor’s sale
of Registrable Shares pursuant to the registration statement would adversely
interfere with any material acquisition, corporate reorganization or other
similar transaction involving the Company (a “Transaction Blackout”); or (ii)
the Company determines, in the good faith judgment of the general counsel of
the Company, that the Investor’s offer or sale of Registrable Shares pursuant
to the registration statement would require disclosure of material information
that the Company has a bona fide business purpose for preserving as
confidential or the Company is unable to comply with Commission’s requirements
and that such disclosure will be detrimental to the Company (an “Information
Blackout”); then the Investor shall suspend sales of Registrable Shares
pursuant to such registration statement until the earlier of: (A) (1) in the
case of a Transaction Blackout, the earliest of (a) one month after the
completion of such acquisition, corporate reorganization or other similar
transaction; (b) promptly after (but no sooner than three days after the public
announcement of) abandonment of such acquisition, corporate reorganization or
other similar transaction; and (c) 120 days after the date of the Company’s
written notice of Transaction Blackout; or (2) in the case of an Information
Blackout, the earlier of (a) three days after the date upon which such material
information is disclosed to the public or ceases to be material; and (b) 120
days after the Company makes such good faith

5

 

	 	 	 	determination, and (B) such time as the Company notifies the Investor that
sale pursuant to such registration statement may be resumed.

	4.	 	DESIGNATION OF UNDERWRITER.

	 	4.1.	 	In the case of any registration effected pursuant to Section 3, should
the offering be underwritten, the Company and the Investor shall confer as to
the selection of a managing underwriter. Should they fail to reach agreement,
the selection shall be made by the Investor.
	 
	 	4.2.	 	In the case of any registration initiated by the Company under Section
2, the Company shall have the right to designate the managing underwriter in
any underwritten offering.

	5.	 	EXPENSES.
	 
	 	 	All expenses incurred in connection with any registration under Sections 2 or 3 shall be
borne by the Company; provided, however, that the Investor shall pay its pro rata portion of
the discounts or commissions payable to any underwriter and shall bear its own attorney’s
fees and disbursements.

	6.	 	INDEMNIFICATION AND CONTRIBUTION.
	 
	 	 	In connection with a registration statement filed by the Company pursuant to this Agreement:

	 	6.1.	 	The Company will indemnify and hold harmless, to the fullest extent
permitted by law, the Investor participating in a registration and any
underwriter who participates as an underwriter in such registered offering, and
each person, if any, who controls the Investor or such underwriter (within the
meaning of the Securities Act and the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)), from and against any and all losses, damages,
claims, liabilities, joint or several, costs and expenses (including any
amounts paid in any settlement effected with the Company’s prior written
consent) to which the Investor or any such underwriter or controlling person
may become subject under applicable law or otherwise, insofar as such losses,
damages, claims, liabilities (or actions or proceedings in respect thereof),
costs or expenses arise out of or are based upon (i) any untrue statement or
alleged untrue statement of any material fact contained in the registration
statement or included in the prospectus, as amended or supplemented, or (ii)
the omission or alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements therein, in light of the
circumstances in which they are made, not misleading, or (iii) any violation or
alleged violation by the Company of the Securities Act, the Exchange Act or the
state securities laws of individual U.S. states, and the Company will reimburse
the Investor, any underwriter and each such controlling person of the Investor
or the underwriter, promptly upon demand, for any reasonable legal or any other
expenses incurred by them in

6

 

	 	 	 	connection with investigating, preparing to defend or defending against or
appearing as a third-party witness in connection with such loss, claim,
damage, liability, action or proceeding; provided, however, that the
Company will not be liable to or obligated to indemnify or hold harmless
pursuant to this Section 6.1 the Investor, the underwriter or any such
controlling person to the extent that any such loss, damage, liability,
cost or expense arises out of or is based upon an untrue statement or
omission in such registration statement or prospectus so made in reliance
upon and in conformity with information furnished to the Company in writing
by the Investor, such underwriter or such controlling persons specifically
for use in such registration statement; provided, further, that this
indemnity shall not be deemed to relieve any underwriter of any of its due
diligence obligations; and provided, further, that the indemnity agreement
contained in this Section 6.1 shall not apply to amounts paid in settlement
of any such claim, loss, damage, liability or action if such settlement is
effected without the consent of the Company, which consent shall not be
unreasonably withheld. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of the Investor, the
underwriter or any controlling person of the underwriter, and regardless of
any sale in connection with such offering by the Investor. Such indemnity
shall survive the transfer of securities by a Holder but in no event shall
the Company pay more than once in respect of any loss, damage, claim or
liability.
	 
	 	6.2.	 	The Investor participating in a registration will indemnify and hold
harmless the Company, any underwriter for the Company, and each person, if any,
who controls the Company or such underwriter (within the meaning of the
Securities Act and the Exchange Act), from and against any and all losses,
damages, claims, liabilities, costs or expenses (including any amounts paid in
any settlement effected with the Investor’s consent) to which the Company or
any such controlling person and/or any such underwriter may become subject
under applicable law or otherwise, insofar as such losses, damages, claims,
liabilities (or actions or proceedings in respect thereof), costs or expenses
arise out of or are based on (i) any untrue statement or alleged untrue
statement of any material fact contained in the registration statement or
included in the prospectus, as amended or supplemented, or (ii) the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances
in which they were made, not misleading, and the Investor will reimburse the
Company, any underwriter and each such controlling person of the Company or any
underwriter, promptly upon demand, for any reasonable legal or other expenses
incurred by them in connection with investigating, preparing to defend or
defending against or appearing as a third-party witness in connection with such
loss, claim, damage, liability, action or proceeding; provided, however, that
the Investor will be liable and obligated to indemnify and hold harmless the
Investor, the underwriter or any such controlling person pursuant to this
Section 6.2 only to the extent that any such loss, damage, liability, cost or
expense arises out of or is based upon an untrue statement or omission in such
registration or prospectus made in reliance

7

 

	 	 	 	upon and conformity with written information furnished to the Company by
the Investor specifically for use in such registration statement; provided,
further, that this indemnity shall not be deemed to relieve any underwriter
of any of its due diligence obligations; and provided, further, that the
indemnity agreement contained in this Section 6.2 shall not apply to
amounts paid in settlement of any such claim, loss, damage, liability or
action if such settlement is effected without the consent of the Investor,
as the case may be, which consent shall not be unreasonably withheld. In
any event, the indemnification obligations under this Section 6.2 shall not
exceed the net proceeds received by the Investor pursuant to the public
offering.
	 
	 	6.3.	 	Promptly after receipt by an indemnified party pursuant to the
provisions of Sections 6.1 or 6.2 of notice of the commencement of any action
involving the subject matter of the foregoing indemnity provisions, such
indemnified party will, if a claim thereof is to be made against the
indemnifying party pursuant to the provisions of said Sections 6.1 or 6.2,
promptly notify the indemnifying party of the commencement thereof. In case
such action is brought against any indemnified party and it notifies the
indemnifying party of the commencement thereof, the indemnifying party shall
have the right to participate in, and, to the extent that it may wish, jointly
with any other indemnifying party similarly notified, to assume the defense
thereof with counsel reasonably satisfactory to such indemnified party;
provided, however, that if the defendants in any action include both the
indemnified party and the indemnifying party and there is a conflict of
interests which would prevent counsel for the indemnifying party from also
representing the indemnified party, the indemnified party or parties shall have
the right to select one separate counsel to participate in the defense of such
action on behalf of such indemnified party or parties. After notice from the
indemnifying party to such indemnified party of its election so to assume the
defense thereof, the indemnifying party will not be liable to such indemnified
party pursuant to the provisions of said Sections 6.1 or 6.2 for any legal or
other expense subsequently incurred by such indemnified party in connection
with the defense thereof, unless (i) the indemnified party shall have employed
separate counsel in accordance with the proviso to the immediately preceding
sentence, (ii) the indemnifying party shall not have employed counsel
reasonably satisfactory to the indemnified party to represent the indemnified
party within a reasonable time after the notice of the commencement of the
action and within 15 days after written notice of the indemnified party’s
intention to employ separate counsel pursuant to the proviso to the immediately
preceding sentence, or (iii) the indemnifying party has authorized the
employment of counsel for the indemnified party at the expense of the
indemnifying party. No indemnifying party will consent to entry of any judgment
or enter into any settlement which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such indemnified party of a
release from all liability in respect to such claim or litigation.

8

 

	 	6.4.	 	Contribution. If for any reason the foregoing indemnity is
unavailable, or is insufficient to hold harmless an indemnified party, then the
indemnifying party shall contribute to the amount paid or payable by the
indemnified party as a result of such losses, claims, damages, liabilities or
expenses (i) in such proportion as is appropriate to reflect the relative
benefits received by the indemnifying party on the one hand and the indemnified
party on the other from the registration or (ii) if the allocation provided by
clause (i) above is not permitted by applicable law, or provides a lesser sum
to the indemnified party than the amount hereinafter calculated, in such
proportion as is appropriate to reflect not only the relative benefits received
by the indemnifying party on the one hand and the indemnified party on the
other but also the relative fault of the indemnifying party and the indemnified
party as well as any other relevant equitable considerations. No person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation.

	7.	 	OBLIGATIONS OF THE COMPANY.
	 
	 	 	Whenever required under this Agreement to effect the registration of any Registrable Shares,
the Company shall, as expeditiously as possible:

	 	7.1.	 	(i) prepare and file with the SEC a registration statement with respect
to such Registrable Shares and use its commercially reasonable efforts to cause
such registration statement to become effective, (ii) upon the request of the
Investor, keep a registration statement effective until the distribution
contemplated by such registration statement has been completed or, if the
distribution contemplated by the registration statement is being effected
pursuant to Rule 415 under the Securities Act, the earlier of (i) the
distribution contemplated in the registration statement has been completed, and
(ii) the termination of 24 months.
	 
	 	7.2.	 	prepare and file with the SEC such amendments and supplements to such
registration statement and the prospectus that is a part of such registration
statement as may be reasonably necessary to comply with the provisions of the
Securities Act with respect to the offer and sale of all Registrable Shares
covered by such registration statement.
	 
	 	7.3.	 	furnish to the Investor a copy of the prospectus, including a
preliminary prospectus if reasonably requested by the Investor, in conformity
with the requirements of the Securities Act, and such other documents as it may
reasonably request in order to facilitate the offer and sale of Registrable
Shares owned by it as contemplated by such registration statement.
	 
	 	7.4.	 	in the event of any underwritten public offering, enter into and
perform its obligations under an underwriting agreement, in usual and customary
form and containing customary terms and conditions, with the managing
underwriter of

9

 

	 	 	 	such offering. The Investor shall also enter into and perform its
obligations under such an agreement.
	 
	 	7.5.	 	notify the Investor holding Registrable Shares covered by such
registration statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event
as a result of which the prospectus included in such registration statement, as
then in effect, together with all prospectus supplements theretofore filed with
the Commission, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in the light of the circumstances then
existing.
	 
	 	7.6.	 	cause all Registrable Shares registered pursuant hereunder to be listed
on the securities exchange on which shares of Common Stock are then listed.
	 
	 	7.7.	 	provide a transfer agent and registrar for all Registrable Shares
registered pursuant hereunder and a CUSIP number for all such Registrable
Shares, in each case not later than the effective date of such registration.
	 
	 	7.8.	 	to the extent that the securities laws of the states of the United
States are not preempted by Section 18 of the Securities Act with respect to
any offer and sale of Registrable Securities, take such action as is required
under the securities laws of such states of the United States as the Investor
shall reasonably request; provided, however, that the Company shall not be
required to qualify to do business as a foreign corporation, or to file any
general consent to service of process, in any state.
	 
	 	7.9.	 	furnish to the Investor, should the Investor request registration of
the offer and sale of Registrable Shares pursuant to this Agreement, on the
date that such Registrable Shares are delivered to the underwriters for sale in
connection with a registration pursuant to this Agreement, if such securities
are being sold through underwriters, or, if such securities are not being sold
through underwriters, on the date that the registration statement with respect
to such securities becomes effective, (i) an opinion, dated such date, of the
counsel representing the Company for the purposes of such registration, in form
and substance as is customarily given to underwriters in an underwritten public
offering of the type , addressed to the underwriters, if any, and, if the
offering is not underwritten, to the Investor regarding the valid issuance of
the Registrable Shares and (ii) in the case of an underwritten public offering,
a letter dated such date, from the independent certified public accountants of
the Company, in form and substance as is customarily given by independent
certified public accountants to underwriters in an underwritten public
offering, addressed to the underwriters.

7A. Investor Obligations.

	 	7A.1	 	 The Investor shall provide to the Company in connection with any
incidental registration or Demand Registration such information

10

 

	 	 	 	concerning the Investor, its ownership of the shares, its proposed plan of
distribution for the Registrable Shares to be registered and such other
information as the Company may request in order to comply with the
disclosure requirements under the Securities law and the rules and
regulations of the Commission thereunder with respect to the offer and sale
of Registrable Shares by the Investor pursuant to any registration of
Registrable Shares effected pursuant to this Agreement. In addition, the
Investor shall provide to the Company such cooperation and assistance as
the Company may reasonably request in connection with effecting the
registration of the Registrable Shares pursuant to any request for
registration made by Investor hereunder

	8.	 	ASSIGNMENT OF REGISTRATION RIGHTS.
	 
	 	 	The Investor may assign its rights to cause the Company to register pursuant to this
Agreement all or part of its Registrable Shares to a Permitted Transferee to whom the
Investor has transferred all or part of its Registrable Shares. The transferor shall, within
twenty (20) days after such transfer, furnish the Company with written notice of the name
and address of such transferee and the securities with respect to which such registration
rights are being assigned, and the transferee’s written agreement to be bound by this
Agreement to the same extent and on the same terms as the Investor.
	 
	9.	 	LOCK-UP.
	 
	 	 	In any registration of the Company’s shares pursuant to Sections 2 or 3 above, the Investor
agrees that any sales of Registrable Shares may be subject to a “lock-up” period restricting
such sales for up to one hundred and eighty (180) days, and the Investor will agree to abide
by such customary “lock-up” period of up to one hundred and eighty (180) days as is required
by the underwriter in such a registration and further agrees to execute such further
documents as may be required by the underwriters to effectuate such “lock-up”. If the
underwriter in any underwritten public offering of shares of the Company’s Common Stock
requests the directors, officers and holders of substantial blocks of the Company’s shares
of Common Stock to enter into lock-up agreements for a period not to exceed one
hundred-eighty days in connection with such offering and the Investor holds more than 5% of
the outstanding shares of the Common Stock at the time of such offering, the Investor agrees
to enter into a lock-up agreement with respect to such offering if such lock-up arrangements
are, and the terms of such lock-up agreement are, customary in similar offerings for persons
similarly situated to the Investor.
	 
	10.	 	RULE 144.
	 
	 	 	The Company shall:

	 	  10.1.	 	Make and keep available adequate current public information with
respect to the Company within the meaning of Rule 144(c) under the Securities
Act (or similar rule then in effect);

11

 

	 	10.2.	 	Furnish to the Investor forthwith upon request one of the following,
at the discretion of the Company (i) a written statement by the Company as to
its compliance with the informational requirements of Rule 144(c) (or similar
rule then in effect) or (ii) a copy of the most recent annual or quarterly
report of the Company; and
	 
	 	10.3.	 	Comply with all other necessary filings and other requirements so as
to enable the Investor and any transferee thereof to sell Registrable Shares
under Rule 144 under the Securities Act (or similar rule then in effect).

	 	 	The Investor shall provide to the Company in connection with any proposed transfer
of Registrable Shares in a sale pursuant to Rule 144 such representation letters of
the Investor and the broker, if any, effecting such sale as may be customary and
containing such representations and warranties of the Investor and any such broker
as may be customary in connection with such sales.

11. MISCELLANEOUS

	 	11.1.	 	Further Assurances. Each of the parties hereto shall perform
such further acts and execute such further documents as may reasonably be
necessary to carry out and give full effect to the provisions of this Agreement
and the intentions of the parties as reflected thereby.
	 
	 	11.2.	 	Governing Law; Jurisdiction. This Agreement shall be governed
by, and construed in accordance with, the laws of the State of Delaware;
provided, however, that with respect to maters specifically related to the
federal securities laws of the United States, such laws shall govern. The
parties hereto irrevocably submit to the exclusive jurisdiction of the district
court of Tel Aviv Jaffa, Israel in any disput arising under this Agreement.
	 
	 	11.3.	 	Successors and Assigns; Subject to the provisions contained in
this Agreement, the provisions hereof shall inure to the benefit of, and be
binding upon, the successors, assigns, heirs, executors, and administrators of
the parties hereto. None of the rights, privileges, or obligations set forth
in, arising under, or created by this Agreement may be assigned or transferred,
except to a Permitted Transferee who shall have agreed to be bound by and to
comply with the terms of this Agreement.
	 
	 	11.4.	 	Entire Agreement. This Agreement constitutes the full and
entire understanding and agreement between the parties with regard to the
subject matter hereof.
	 
	 	11.5.	 	Amendments. Any term of this Agreement may be amended with the
written consent of the Investor and the Company.
	 
	 	11.6.	 	Section Headings; Preamble. All article and section headings
are inserted for convenience only and shall not modify or affect the
construction or

12

 

	 	 	 	interpretation of any provision of this Agreement. The preamble to this
Agreement is incorporated herein and forms an integral part of this
Agreement.
	 
	 	11.7.	 	Communications. All notices or other communications hereunder
shall be in writing and shall either be given in person, sent by registered
mail (registered international air mail if mailed internationally), sent by an
overnight courier service which obtains a receipt to evidence delivery, or
transmitted by facsimile transmission (provided that written confirmation of
receipt is provided), to the last known address of the addressee or to such
other address as such party shall notify the others in writing. All notices and
other communications delivered in person or by courier service shall be deemed
to have been given as of three business days after sending thereof, those given
by facsimile transmission shall be deemed given twenty-four hours following
transmission, and all notices and other communications sent by registered mail
(or air mail if the posting is international) shall be deemed given five (5)
days after posting.
	 
	 	11.8.	 	Delays or Omissions. No delay or omission to exercise any
right, power, or remedy accruing to any party upon any breach or default under
this Agreement, shall be deemed a waiver of any such breach or default. 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 of the parties, shall be cumulative and not alternative.
	 
	 	11.9.	 	Severability. If any provision of this Agreement is held by a
court of competent jurisdiction to be unenforceable under applicable law, then
such provision shall be excluded from this Agreement and the remainder of this
Agreement shall be interpreted as if such provision were so excluded and shall
be enforceable in accordance with its terms; provided, however, that in such
event this Agreement shall be interpreted so as to give effect, to the greatest
extent consistent with and permitted by applicable law, to the meaning and
intention of the excluded provision as determined by arbitration.
	 
	 	11.10.	 	Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and enforceable against
the parties actually executing such counterpart, and all of which together
shall constitute one and the same instrument.

[Signature Page Follows]

13

 

IN WITNESS WHEREOF, the parties have signed this Agreement as of the date first hereinabove set
forth.

	 	 	 	 	 	 	 	 	 	 	 	 	 

	/s/ Gillon Beck	 	 	 	 	 	/s/ Gillon  Beck	 	 
	 

	 	 	 	 	 	 

	 	 
	FIMI Opportunity IV, L.P.	 	 	 	 	 	FIMI Israel Opportunity IV, Limited Partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By: FIMI IV 2007 Ltd.

	 	 	.	 	 	By: FIMI IV 2007 Ltd.
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Gillon Beck	 	 	 	 	 	Name:	 	Gillon Beck	 	 
	Title:

	 	Director	 	 	 	 	 	Title:	 	Director	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Alon USA Energy, Inc.	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Michael Oster	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 	 	 
	Name:
	 	Michael Oster	 	 	 	 	 	 	 	 	 	 
	Title:
	 	Senior Vice President
of Mergers and Acquisitions	 	 	 	 	 	 	 	 	 	 

14

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