Document:

exv10w6

Exhibit 10.6

EXECUTION VERSION

 

LEASE AND ACCESS AGREEMENT

(El Dorado)

BETWEEN

FRONTIER EL DORADO REFINING LLC,

AS LESSOR

AND

EL DORADO LOGISTICS LLC

AS LESSEE

Effective as of November 1, 2011

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page No.
	ARTICLE I

	DEFINITIONS AND CONSTRUCTION

	1

	 
	 	 	 	 
	1.1 Certain Defined Terms
	 	 	1	 
	1.2 References
	 	 	4	 
	1.3 Headings
	 	 	5	 
	 
	 	 	 	 
	ARTICLE II

	DEMISE OF PREMISES AND TERM

	5

	 
	 	 	 	 
	2.1 Demise of Premises and Term
	 	 	5	 
	2.2 Access
	 	 	5	 
	2.3 Rent
	 	 	6	 
	2.4 Place of Payment
	 	 	6	 
	2.5 Net Lease
	 	 	6	 
	 
	 	 	 	 
	ARTICLE III

	CONDUCT OF BUSINESS

	6

	 
	 	 	 	 
	3.1 Use of Premises
	 	 	6	 
	3.2 Waste
	 	 	6	 
	3.3 Governmental Regulations
	 	 	6	 
	3.4 Air Quality Permits
	 	 	7	 
	3.5 Utilities
	 	 	7	 
	 
	 	 	 	 
	ARTICLE IV

	ALTERATIONS, ADDITIONS AND IMPROVEMENTS

	7

	ARTICLE V

	MAINTENANCE OF PREMISES

	8

	 
	 	 	 	 
	5.1 Maintenance by Lessee
	 	 	8	 
	5.2 Operation of Premises
	 	 	8	 
	5.3 Surrender of Premises
	 	 	8	 
	5.4 Release of Hazardous Substances
	 	 	8	 
	 
	 	 	 	 
	ARTICLE VI

	TAXES, ASSESSMENTS

	9

	 
	 	 	 	 
	6.1 Lessee’s Obligation to Pay
	 	 	9	 
	6.2 Manner of Payment
	 	 	9	 

 

 

	 	 	 	 	 
	 	 	Page No.
	ARTICLE VII

	EMINENT DOMAIN; CASUALTY; INSURANCE

	10

	 
	 	 	 	 
	7.1 Total Condemnation of Premises
	 	 	10	 
	7.2 Partial Condemnation
	 	 	10	 
	7.3 Damages and Right to Additional Property
	 	 	10	 
	7.4 Insurance
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VIII

	ASSIGNMENT AND SUBLETTING

	11

	 
	 	 	 	 
	8.1 Assignment and Subletting
	 	 	11	 
	8.2 Release of Lessor
	 	 	11	 
	8.3 Release of Lessee
	 	 	11	 
	 
	 	 	 	 
	ARTICLE IX

	DEFAULTS; REMEDIES; TERMINATION

	11

	 
	 	 	 	 
	9.1 Default by Lessee
	 	 	11	 
	9.2 Lessor’s Remedies
	 	 	11	 
	9.3 Default by Lessor
	 	 	12	 
	9.4 Lessee’s Remedies
	 	 	12	 
	 
	 	 	 	 
	ARTICLE X

	INDEMNITY

	12

	 
	 	 	 	 
	10.1 Indemnification by Lessor
	 	 	12	 
	10.2 Indemnification by Lessee
	 	 	13	 
	10.3 Matters Involving a Third Party
	 	 	13	 
	10.4 Survival
	 	 	14	 
	10.5 Ancillary Agreements
	 	 	14	 
	 
	 	 	 	 
	ARTICLE XI

	GENERAL PROVISIONS

	14

	 
	 	 	 	 
	11.1 Estoppel Certificates
	 	 	14	 
	11.2 Severability
	 	 	14	 
	11.3 Time of Essence
	 	 	14	 
	11.4 Captions
	 	 	14	 
	11.5 Entire Agreement; Amendment
	 	 	14	 
	11.6 Schedules and Exhibits
	 	 	14	 
	11.7 Notices
	 	 	15	 
	11.8 Waivers
	 	 	16	 
	11.9 No Partnership
	 	 	16	 
	11.10 No Third Party Beneficiaries
	 	 	16	 
	11.11 Waiver of Landlord’s Lien
	 	 	16	 
	11.12 Mutual Cooperation; Further Assurances
	 	 	16	 

ii

 

	 	 	 	 	 
	 	 	Page No.
	11.13 Recording
	 	 	16	 
	11.14 Binding Effect
	 	 	16	 
	11.15 Choice of Law
	 	 	17	 
	11.16 Warranty of Peaceful Possession
	 	 	17	 
	11.17 Force Majeure
	 	 	17	 
	11.18 Survival
	 	 	17	 
	11.19 AS IS, WHERE IS
	 	 	17	 
	11.20 Relocation of Pipelines; Amendment
	 	 	18	 
	11.21 Option
	 	 	18	 

iii

 

	 	 	 	 	 

	EXHIBITS AND SCHEDULES

	 
	Exhibits
	 	 	 	 
	Exhibit A

	 	—
	 	Description of Premises
	Exhibit B

	 	—
	 	Memorandum of Lease
	 
	 	 	 	 
	Schedules
	 	 	 	 
	Schedule 1.1(b)

	 	—
	 	Matters which are not part of the Premises
	Schedule 7.4

	 	—
	 	Insurance Requirements

iv

 

LEASE AND ACCESS AGREEMENT

(El Dorado)

     THIS LEASE AND ACCESS AGREEMENT (EL DORADO) (this “Lease”) is made and entered into as
of November 9, 2011 to be effective as of 12:01 a.m. Dallas, Texas time on November 1, 2011,
between FRONTIER EL DORADO REFINING LLC, a limited liability company organized and existing under
the laws of Delaware (herein called “Lessor”), and EL DORADO LOGISTICS LLC, a limited
liability company organized and existing under the laws of Delaware (“Lessee”). Lessor and
Lessee are each referred to individually as a “Party” and collectively as the
“Parties.”

W I T N E S S E T H:

     WHEREAS, pursuant to the terms of that certain LLC Interest Purchase Agreement, dated as of
the date hereof (the “Purchase Agreement”) by and among HollyFrontier Corporation, a
Delaware corporation, Lessor and Frontier Refining LLC, a Delaware limited liability company, as
Sellers, Holly Energy Partners — Operating, L.P., a Delaware limited partnership (the
“Operating Partnership”), as Buyer, and Holly Energy Partners, L.P., a Delaware limited
partnership, the Operating Partnership acquired all of the issued and outstanding limited liability
company interests of Lessee, the owner of the Relevant Assets (as defined below) located on the
Refinery Site (defined below); and

     WHEREAS, simultaneously herewith, Lessor and Lessee are entering into that certain Site
Services Agreement (El Dorado) dated as of the date hereof (the “Site Services Agreement”)
to provide Lessee with shared use of certain services, utilities, materials and facilities that are
necessary to operate and maintain the Relevant Assets as currently operated and maintained;

     NOW, THEREFORE, for and in consideration of the premises, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and of the mutual
agreements hereinafter set forth, Lessor and Lessee covenant and agree as follows:

ARTICLE I

DEFINITIONS AND CONSTRUCTION

     1.1 Certain Defined Terms. Unless the context otherwise requires, the following terms
shall have the respective meanings set forth in this Section 1.1:

	 	 	“Additional Improvements” shall have the meaning ascribed to such term in
Article IV.

     “Affiliates” shall have the meaning ascribed to such term in the Purchase Agreement.

     “Ancillary Agreements” means collectively, the Purchase Agreement, the Site Services
Agreement, the Throughput Agreement, and any other agreement executed by any of the parties hereto
in connection with the Operating Partnership’s acquisition of Lessee and Lessee’s ownership of the
Relevant Assets that has not been amended and restated or superseded.

 

 

     “Bankruptcy Event” shall have the meaning ascribed to such term in the Site Services
Agreement.

     “Casualty Event” shall have the meaning ascribed to such term in Section 7.3.

     “Claims” shall have the meaning ascribed to such term in Section 10.1.

     “Commencement Date” shall have the meaning ascribed to such term in Section
2.1.

     “Connection Facilities” shall have the meaning ascribed to such term in the Site
Services Agreement.

     “Credit Agreement” shall have the meaning ascribed to such term in Section
11.21.

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

     “Force Majeure” means acts of God, strikes, lockouts or other industrial disturbances,
acts of the public enemy, wars, blockades, insurrections, riots, storms, floods, washouts, arrests,
the order of any Governmental Authority having jurisdiction while the same is in force and effect,
civil disturbances, explosions, breakage, accident to machinery, storage tanks or lines of pipe,
inability to obtain or unavoidable delay in obtaining material or equipment, and any other causes
whether of the kind herein enumerated or otherwise not reasonably within the control of the Party
claiming suspension and which by the exercise of due diligence such Party is unable to prevent or
overcome.

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

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

     “Indemnified Party” means the Party seeking indemnification under Section 10.1
or Section 10.2.

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     “Indemnifying Party” means the Party required to provide indemnification under
Section 10.1 or Section 10.2.

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

     “Lease” shall have the meaning ascribed to such term in the preface to this Lease.

     “Lessee” shall have the meaning ascribed to such term in the preface to this Lease.

     “Lessee Indemnified Parties” shall have the meaning ascribed to such term in
Section 10.1.

     “Lessee Release” shall have the meaning ascribed to such term in Section
11.13.

     “Lessee’s Parties” shall have the meaning ascribed to such term in Section
2.2(a).

     “Lessor” shall have the meaning ascribed to such term in the preface to this Lease.

     “Lessor Indemnified Parties” shall have the meaning ascribed to such term in
Section 10.2.

     “Lessor’s Parties” shall have the meaning ascribed to such term in Section
2.2(b).

     “Operating Partnership” shall have the meaning set forth in the recitals.

     “Party” and “Parties” shall have the meanings ascribed to such term in the preface to
this Lease.

     “Permits” means all permits, licenses, franchises, authorities, consents, and
approvals, as necessary under applicable Laws, including Environmental Laws, for operating the
Relevant Assets and/or the Premises.

     “Person” means any individual or entity, including any partnership, corporation,
association, joint stock company, trust, joint venture, limited liability company, unincorporated
organization or Governmental Authority (or any department, agency or political subdivision
thereof).

     “Post-Maturity Rate” shall have the meaning ascribed to such term in Section
9.2.

     “Premises” means those certain tracts or parcels of land on which the Relevant Assets
are situated, such land being located in the City of El Dorado, Butler County, Kansas, more

3

 

particularly described or identified on Exhibit A attached hereto and made a part hereof for
all purposes together with all right, title and interest, if any, of Lessor in and to all accretion
attaching to the land and any rights to submerged lands or interests in riparian rights or riparian
grants owned by Lessor and adjoining the land shown on said Exhibit A, but excluding (i) the
Relevant Assets, (ii) the Additional Improvements, and (iii) those matters set forth on
Schedule 1.1(b).

     “Purchase Agreement” shall have the meaning set forth in the recitals.

     “Refinery” means Lessor’s refinery located at the Refinery Site.

     “Refinery Site” means that certain tract(s) or parcel(s) of land located in the City
of El Dorado, Butler County, Kansas, on which the Premises are located.

     “Relevant Assets” means the El Dorado Assets, as such term is defined in the Purchase
Agreement.

     “Rent” shall have the meaning ascribed to such term in Section 2.3.

     “Shared Access Facilities” shall have the meaning ascribed to such term in Section
2.2(a).

     “Site Services Agreement” shall have the meaning set forth in the recitals.

     “SUMF Assets” shall have the meaning ascribed to such term in the Site Services
Agreement.

     “Taxes” shall have the meaning ascribed to such term in Section 6.1.

     “Term” shall have the meaning ascribed to such term in Section 2.1.

     “Third Party” shall mean a Person which is not (a) Lessor or an Affiliate of Lessor,
(b) Lessee or an Affiliate of Lessee or (c) a Person that, after the signing of this Lease becomes
a successor entity of Lessor, Lessee or any of their respective Affiliates. An employee of Lessor
or Lessee shall not be deemed an Affiliate.

     “Third-Party Claim” shall have the meaning ascribed to such term in Section
10.3.

     “Throughput Agreement” means the Pipelines, Tankage and Loading Rack Throughput
Agreement (El Dorado) by and between Lessor and Lessee dated evenly herewith.

     1.2 References. As used in this Lease, unless a clear contrary intention appears:
(a) the singular includes the plural and vice versa; (b) reference to any Person includes such
Person’s successors and assigns but, in the case of a Party, only if such successors and assigns
are permitted by this Lease, and reference to a Person in a particular capacity excludes such
Person in any other capacity; (c) reference to any gender includes each other gender; (d) reference
to any agreement (including this Lease), document or instrument means such agreement, document, or
instrument as amended or modified and in effect from time to time in accordance with the terms

4

 

thereof and, if applicable, the terms of this Lease; (e) reference to any Section means such
Section of this Lease, and references in any Section or definition to any clause means such clause
of such Section or definition; (f) “hereunder”, “hereof”, “hereto” and words of similar import will
be deemed references to this Lease as a whole and not to any particular Section or other provision
hereof or thereof; (g) “including” (and with correlative meaning “include”) means including without
limiting the generality of any description preceding such term; and (h) relative to the
determination of any period of time, “from” means “from and including,” “to” means “to but
excluding” and ‘through” means “through and including.”

     1.3 Headings. The headings of the Sections of this Lease and of the Schedules and
Exhibits are included for convenience only and shall not be deemed to constitute part of this Lease
or to affect the construction or interpretation hereof or thereof.

ARTICLE II

DEMISE OF PREMISES AND TERM

     2.1 Demise of Premises and Term.

          (a) In consideration of the rents, covenants, and agreements set forth herein and subject to
the terms and conditions hereof, Lessor hereby leases to Lessee and Lessee hereby leases from
Lessor, the Premises for a term commencing on the effective date hereof (the “Commencement
Date”) and ending at midnight on the date which is fifty (50) years after the date hereof, and
after such date the term of this Lease shall be automatically renewed for a maximum of four (4)
successive ten-year periods thereafter (the “Term”); provided, however, Lessee may
terminate this Lease at the end of such initial period or any subsequent ten-year period by
delivering written notice to Lessor, on or before 180 days prior to the end of any such period,
that Lessee has elected to terminate this Lease.

          (b) At Lessee’s option, Lessee may terminate this Lease, by providing written notice to Lessor
on or before 180 days prior to the desired termination date if Lessee ceases to operate the
Relevant Assets and Additional Improvements or ceases its business operations. In the event of
such termination pursuant to this Section 2.1(b), Lessor shall retain one half of the
remaining Rent (as defined below) for the then current 12-month rental period as set forth in
Section 2.3 below as its sole and exclusive remedy for such early termination and shall
refund to Lessee the remaining Rent.

     2.2 Access.

          (a) Lessor hereby grants to Lessee and its respective Affiliates, agents, employees and
contractors (collectively, “Lessee’s Parties”) free of charge, an irrevocable,
non-exclusive right of access to and use of those portions of the Refinery Site that are reasonably
necessary for access to and/or the operation of the Relevant Assets and Additional Improvements by
Lessee as a stand-alone enterprise, all so long as such access and use by any of Lessee’s Parties
does not unreasonably interfere in any material respect with Lessor’s operations at the Refinery
Site and complies with Lessor’s rules, norms and procedures governing safety and security at the
Refinery Site. The facilities on the Refinery Site that are subject to the access and use rights
provided under this Section, are referred to herein as the “Shared Access Facilities”.

5

 

Notwithstanding the foregoing, the provisions of this Section 2.2(a) shall relate only
to access and use of the Shared Access Facilities, and the Site Services Agreement shall cover all
services that are to be provided by Lessor under the terms of the Site Services Agreement.

          (b) Lessor hereby retains for itself and its Affiliates, agents, employees and contractors
(collectively, “Lessor’s Parties”), the right of access to all of the Premises and the
Relevant Assets (i) to determine whether the conditions and covenants contained in this Lease are
being kept and performed, (ii) to comply with Environmental Laws, and (iii) to inspect, maintain,
repair, improve and operate the SUMF Assets and the Shared Access Facilities and any assets of
Lessor located on the Premises or to install or construct any structures or equipment necessary for
the maintenance, operation or improvement of any such assets or the installation, construction or
maintenance of any Connection Facilities, all so long as such access by Lessor’s Parties does not
unreasonably interfere in any material respect with Lessee’s operations on the Premises and
complies with Lessee’s rules, norms and procedures governing safety and security at the Premises.

     2.3 Rent. As rental for the Premises during the Term, Lessee agrees to pay to Lessor
for each 12-month period of the Term One Hundred and 00/100 ($100.00) (the “Rent”) on or
before the 1st day of each 12-month period, the first such payment being due within 30 days of the
Commencement Date of the Term.

     2.4 Place of Payment. All Rent shall be payable in lawful money of the United States
of America at Lessor’s address set forth in Section 11.7.

     2.5 Net Lease. Except as herein otherwise expressly provided in this Lease and in the
Ancillary Agreements, this is a net lease and Lessor shall not at any time be required to pay any
utility charges or any costs associated with the maintenance, repair, alteration or improvement of
the Premises or to provide any services or do any act or thing with respect to the Premises or any
part thereof or any appurtenances thereto, and the Rent reserved herein shall be paid without any
claim on the part of Lessee for diminution, setoff or abatement and nothing shall suspend, abate or
reduce any Rent to be paid hereunder, except as expressly provided herein.

ARTICLE III

CONDUCT OF BUSINESS

     3.1 Use of Premises. Lessee shall have the right to use the Premises for the purpose
of owning, operating, maintaining, repairing, replacing, improving, and expanding the Relevant
Assets and the Additional Improvements and for any other lawful purpose associated with the
operation and ownership of the Relevant Assets and the Additional Improvements.

     3.2 Waste. Subject to the obligations of Lessor under the Ancillary Agreements,
Lessee shall not commit, or suffer to be committed, any waste to the Premises, ordinary wear and
tear or casualty excepted.

     3.3 Governmental Regulations. Subject to the obligations of Lessor to Lessee under
this Lease and the Ancillary Agreements including the indemnity provisions contained in the
Ancillary Agreements, Lessee shall, at Lessee’s sole cost and expense, at all times comply with

6

 

all applicable requirements (including requirements under Environmental Laws) of all
Governmental Authorities now in force, or which may hereafter be in force, pertaining to the
Premises, and shall faithfully observe all Laws now in force or which may hereafter be in force
pertaining to the Premises or the use, maintenance or operation thereof. Lessee shall give prompt
written notice to Lessor of Lessee’s receipt from time to time of any notice of non-compliance,
order or other directive from any court or other Governmental Authority under Environmental Laws
relating to the Premises. If Lessor reasonably believes at any time that Lessee is not complying
with all applicable legal requirements (including requirements under Environmental Laws) with
respect to the Relevant Assets and Additional Improvements, it will provide reasonable notice to
Lessee of such condition. If Lessee fails to take appropriate action to cause such assets to comply
with applicable Laws or take other actions required under applicable Laws within 30 days of
Lessor’s reasonable notice, Lessor may, without further notice to Lessee, take such actions for
Lessee’s account. Within 30 days following the date Lessor delivers to Lessee evidence of payment
for those actions by Lessor reasonably necessary to cause the Relevant Assets and Additional
Improvements to achieve compliance with applicable Laws because of Lessee’s failure to do so,
Lessee shall reimburse Lessor all amounts paid by Lessor on Lessee’s behalf.

     3.4 Air Quality Permits. Notwithstanding Lessee’s obligation to maintain and operate
the Relevant Assets and Additional Improvements and comply with applicable Laws, Lessor and Lessee
acknowledge that Lessor may, as required by any applicable Governmental Authorities, maintain air
quality permits in its name. Consequently and also for the ease of administration, Lessor may
maintain in its name the air quality permits and other authorizations applicable to all, or part
of, the Relevant Assets and Additional Improvements and may be responsible for making any reports
or other notifications to Governmental Authorities pursuant to such permits or Laws; provided that
upon Lessor’s written request Lessee shall apply for, obtain and maintain any such permits in its
name. Except as provided in the preceding sentence, nothing in this Lease shall reduce Lessee’s
obligations under Laws with respect to the Relevant Assets and Additional Improvements.

     3.5 Utilities. Lessor shall provide all utilities (electricity, natural gas, water,
steam, etc.) necessary for Lessee’s operation of the Relevant Assets and the Additional
Improvements in accordance with the provisions of the Site Services Agreement.

ARTICLE IV

ALTERATIONS, ADDITIONS AND IMPROVEMENTS

     Subject to the provisions of this Article IV, Lessee may make any alterations,
additions, improvements or other changes to the Premises and the Relevant Assets as may be
necessary or useful in connection with the operation of the Relevant Assets (collectively, the
“Additional Improvements”). If such Additional Improvements require alterations, additions
or improvements to the Premises or any of the Shared Access Facilities, Lessee shall notify Lessor
in writing in advance and the parties shall negotiate in good faith any increase to the fees paid
by Lessee under the Site Services Agreement by Lessee or otherwise provide for reimbursement of any
material increase in cost (if any) to Lessor under the Site Services Agreement that results from
any modifications to the Premises or the Shared Access Facilities necessary to accommodate the
Additional Improvements, or as otherwise mutually agreed by the parties. Any

7

 

alteration, addition, improvement or other change to the Premises, Relevant Assets or
Additional Improvements (and, if agreed by Lessee and Lessor, to the Shared Access Facilities) by
Lessee shall be made in a good and workmanlike manner and in accordance with all applicable Laws.
The Relevant Assets and all Additional Improvements shall remain the property of Lessee and shall
be removed by Lessee within one (1) year after termination of this Lease (provided that such can be
removed by Lessee without unreasonable damage or harm to the Premises) or, at Lessee’s option
exercisable by notice to Lessor, surrendered to Lessor upon the termination of this Lease. Lessee
shall not have the right or power to create or permit any lien of any kind or character on the
Premises by reason of repair or construction or other work. In the event any such lien is filed
against the Premises, Lessee shall cause such lien to be discharged or bonded within thirty (30)
days of the date of filing thereof.

ARTICLE V

MAINTENANCE OF PREMISES

     5.1 Maintenance by Lessee. Except as otherwise expressly provided in this Article
V and in Article VII or elsewhere in this Lease and subject to the obligations of
Lessor and Lessee under the Ancillary Agreements, including any indemnity provisions contained in
the Ancillary Agreements, Lessee shall at its sole cost, risk and expense at all times keep the
Premises and Additional Improvements (to the extent such Additional Improvements are located on the
Shared Access Facilities) in good order and repair and make all necessary repairs thereto,
structural and nonstructural, ordinary and extraordinary, and unforeseen and foreseen. When used
in this Section 5.1, the term “repairs” shall include all necessary replacements, renewal,
alterations and additions. All repairs made by Lessee shall be made in accordance with normal and
customary practices in the industry, in a good and workmanlike manner, and in accordance with all
applicable Laws.

     5.2 Operation of Premises. Subject to the obligations of Lessor and Lessee in this
Lease and under the Ancillary Agreements, including any indemnity provisions contained in the
Ancillary Agreements, Lessee covenants and agrees to operate the Relevant Assets and Additional
Improvements located on the Premises in accordance with normal and customary practices in the
industry and all applicable Laws and other requirements of applicable Governmental Authorities now
in force, or which may hereafter be in force, pertaining to the Premises or the use or operation
thereof.

     5.3 Surrender of Premises. Lessee shall at the expiration of the Term or at any
earlier termination of this Lease, surrender the Premises to Lessor in as good condition as it
received the same, ordinary wear and tear, and limitations permitted by Article VII
excepted and in accordance with the provisions of Article IV.

     5.4 Release of Hazardous Substances. Lessee shall give prompt notice to Lessor of any
release of any Hazardous Substances on or at the Premises not in compliance with Environmental Laws
that occur during the Term. Lessor shall immediately take all steps necessary to contain or
remediate (or both) any such release and provide any governmental notifications required by Law.
If Lessor believes at any time that Lessee is failing to contain or remediate in compliance with
all applicable Laws (including Environmental Laws) any release arising from Lessee’s operation of
the Relevant Assets or Additional Improvements or Lessee’s

8

 

failure to comply with its obligations pursuant to this Lease, Lessor will provide reasonable
notice to Lessee of such failure. If Lessee fails to take appropriate action to contain or
remediate such a release or take other actions required under applicable Laws or this Lease within
30 days of Lessor’s reasonable notice, Lessor may, without further notice to Lessee, take such
actions for Lessee’s account. Within 30 days following the date Lessor delivers to Lessee evidence
of payment for those actions by Lessor reasonably necessary to contain or remediate a release or
otherwise achieve compliance with applicable Laws or this Lease because of Lessee’s failure to do
so, Lessee shall reimburse Lessor all amounts paid by Lessor on Lessee’s behalf.

ARTICLE VI

TAXES, ASSESSMENTS

     6.1 Lessee’s Obligation to Pay. Lessee shall pay during the Term, all federal, state
and local real and personal property ad valorem taxes, assessments, and other governmental charges,
general and special, ordinary and extraordinary, including assessments for public improvements or
benefits assessed against the Premises, or improvements situated thereon, including the Relevant
Assets and all Additional Improvements (but excluding any Shared Access Facilities and any SUMF
Assets) for the period after the Commencement Date, that are payable to any lawful authority
assessed against or with respect to the Premises or the use or operation thereof during the Term,
including any federal, state or local income, gross receipts, withholding, franchise, excise,
sales, use, value added, recording, transfer or stamp tax, levy, duty, charge or withholding of any
kind imposed or assessed by any federal, state or local government, agency or authority, together
with any addition to tax, penalty, fine or interest thereon, other than state or U.S. federal
income tax imposed upon the taxable income of Lessor and any franchise taxes imposed upon Lessor
(such taxes and assessments being hereinafter called “Taxes”). In the event that Lessee
fails to pay its share of such Taxes in accordance with the provisions of this Section 6.1
prior to the time the same become delinquent, Lessor may pay the same and Lessee shall reimburse
Lessor all amounts paid by Lessor on Lessee’s behalf within 30 days following the date Lessor
delivers to Lessee evidence of such payment.

     6.2 Manner of Payment. Upon notice by Lessee to Lessor, Lessor and Lessee shall use
commercially reasonable efforts to cause the Premises and the Relevant Assets (including all
Additional Improvements but excluding Shared Access Facilities and any SUMF Assets) to be
separately assessed for purposes of Taxes as soon as reasonably practicable following the
Commencement Date (to the extent allowed by applicable Law). During the Term but subject to the
provisions of Section 6.1, Lessee shall pay all Taxes assessed directly against the
Premises, the Relevant Assets and the Additional Improvements (but excluding the Shared Access
Facilities and any SUMF Assets) directly to the applicable taxing authority prior to delinquency
and shall promptly thereafter provide Lessor with evidence of such payment. Until such time as
Lessor and Lessee can cause the Premises, the Relevant Assets and the Additional Improvements (but
excluding the Shared Access Facilities and any SUMF Assets) to be separately assessed as provided
above, Lessee shall reimburse Lessor, upon request, for any such Taxes paid by Lessor to the
applicable taxing authorities (such reimbursement to be based upon the mutual agreement of the
Lessor and Lessee as to the portion of such Taxes attributable to the Premises, the Relevant Assets
and the Additional Improvements), subject to the terms of Section 6.1. The certificate
issued or given by the appropriate officials authorized or designated by law to issue or give the
same or to receive payment of such Taxes shall be prima facie evidence of the existence,

9

 

payment, nonpayment and amount of such Taxes. Lessee may contest the validity or amount of
any such Taxes or the valuation of the Premises and/or the Relevant Assets and the Additional
Improvements (to the extent any of the foregoing may be separately issued), at Lessee’s sole cost
and expense, by appropriate proceedings, diligently conducted in good faith in accordance with
applicable Law. If Lessee contests such items then Lessor shall cooperate with Lessee in any such
contesting of the validity or amount of any such Taxes or the valuation of the Premises and/or the
Relevant Assets and the Additional Improvements. Taxes for the first and last years of the Term
shall be prorated between the Parties based on the portions of such years that are coincident with
the applicable tax years and for which each applicable Party is responsible.

ARTICLE VII

EMINENT DOMAIN; CASUALTY; INSURANCE

     7.1 Total Condemnation of Premises. If the whole of the Premises are acquired or
condemned by eminent domain for any public or quasi-public use or purpose, then this Lease shall
terminate as of the date title vests in any public agency. All rentals and other charges owing
hereunder shall be prorated as of such date.

     7.2 Partial Condemnation. If any part of the Premises is acquired or condemned as set
forth in Section 7.1, and if in Lessee’s reasonable opinion such partial taking or
condemnation renders the Premises unsuitable for the business of Lessee, then this Lease shall
terminate at Lessee’s election as of the date title vests in any public agency, provided Lessee
delivers to Lessor written notice of such election to terminate within 60 days following the date
title vests in such public agency. In the event of such termination, all rentals and other charges
owing hereunder shall be prorated as of such effective date of termination.

     7.3 Damages and Right to Additional Property. Lessor shall be entitled to any award
and all damages payable as a result of any condemnation or taking of the fee title of the Premises,
provided that the net amount which may be awarded or tendered to Lessor in such condemnation
proceedings (less all legal and other expenses incurred by Lessor in connection with such taking)
shall (as long as Lessee is not then in default hereunder) be used to pay for any restoration by
Lessee of the Relevant Assets, the Additional Improvements and/or the remainder of the Premises
hereof to the extent Lessee desires any of the same to be restored. Lessee shall have the right to
claim and recover from the condemning authority, but not from Lessor, such compensation as may be
separately awarded or recoverable by Lessee in Lessee’s own right on account of any and all damage
to the Relevant Assets, the Additional Improvements and/or Lessee’s business by reason of the
condemnation, including loss of value of any unexpired portion of the Term, and for or on account
of any cost or loss to which Lessee might be put in removing Lessee’s personal property, fixtures,
leasehold improvements and equipment, including the Relevant Assets and the Additional
Improvements, from the Premises.

          During any periods of time during which the Relevant Assets and/or Additional Improvements are
destroyed, damaged, or are being restored or reconstructed (each a “Casualty Event”) under
the terms of this Section, Rent hereunder shall be abated in the proportion that Lessee’s use
thereof is impacted by such Casualty Event, on the condition that Lessee uses commercially
reasonable efforts to mitigate the disruption to its business caused by such Casualty Event.

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     7.4 Insurance. Except as otherwise agreed by Lessor and Lessee, Lessee shall, at all
times, maintain or cause to be maintained insurance with respect to the Premises, the Relevant
Assets and the Additional Improvements in accordance with the requirements identified on
Schedule 7.4 hereto.

ARTICLE VIII

ASSIGNMENT AND SUBLETTING

     8.1 Assignment and Subletting. This Agreement may be assigned in connection with, and
subject to the terms and conditions set forth in Section 13(b) of, the Throughput Agreement, which
such terms and conditions are incorporated herein by reference.

     8.2 Release of Lessor. Any assignment of this Lease by Lessor in accordance with
Section 8.1 shall operate to terminate the liability of Lessor for all obligations under
this Lease accruing after the date of any such assignment.

     8.3 Release of Lessee. Any assignment of this Lease by Lessee in accordance with
Section 8.1 shall operate to terminate the liability of Lessee for all obligations under
this Lease accruing after the date of any such assignment.

ARTICLE IX

DEFAULTS; REMEDIES; TERMINATION

     9.1 Default by Lessee. The occurrence of any one or more of the following events
shall constitute a material default and breach of this Lease by Lessee:

          (a) The failure by Lessee to make when due any payment of Rent or any other payment required
to be made by Lessee hereunder, if such failure continues for a period of 90 days following written
notice from Lessor;

          (b) The failure by Lessee to observe or perform any of the other covenants, conditions or
provisions of this Lease to be observed or performed by Lessee, if such failure continues for a
period of 90 days following written notice from Lessor; provided, however, if a reasonable time to
cure such default would exceed 90 days, Lessee shall not be in default so long as Lessee begins to
cure such default within 90 days of receiving written notice from Lessor and thereafter completes
the curing of such default within reasonable period of time (under the circumstances) following the
receipt of such written notice from Lessor; or

          (c) The occurrence of any Bankruptcy Event.

     9.2 Lessor’s Remedies.

          (a) In the event of any such material default under or material breach of the terms of this
Lease by Lessee, Lessor may, at Lessor’s option, at any time thereafter that such default or breach
remains uncured, without further notice or demand, terminate this Lease and Lessee’s right to
possession of the Premises and forthwith repossess the Premises by any lawful means in which event
Lessee shall immediately surrender possession of the Premises to Lessor; and any such action on the
part of Lessor shall be in addition to any other remedy that may be

11

 

available to Lessor for arrears of Rent or breach of contract, or otherwise, including the
right of setoff.

          (b) If, by the terms of this Lease, Lessee is required to do or perform any act or to pay any
sum to a Third Party, and fails or refuses to do so, Lessor, after 30 days written notice to
Lessee, without waiving any other right or remedy hereunder for such default, may do or perform
such act, at Lessee’s expense, or pay such sum for and on behalf of Lessee, and the amounts so
expended by Lessor shall be repayable on demand, and bear interest from the date expended by Lessor
until paid at a rate equal to the lesser of (i) an interest rate equal to the “Prime Rate” as
published in The Wall Street Journal, Southwest Edition, in its listing of “Money Rates” plus two
percent (2%) or (ii) the maximum non-usurious rate of interest permitted to be charged Lessee under
applicable Law (the “Post-Maturity Rate”). Past due Rent and any other past due payments
required hereunder shall bear interest from maturity until paid at the Post-Maturity Rate.

     9.3 Default by Lessor. The occurrence of any one or more of the following events
shall constitute a material default and breach of this Lease by Lessor:

          (a) The failure by Lessor to observe or perform any of the other covenants, conditions or
provisions of this Lease to be observed or performed by Lessor, if such failure continues for a
period of 30 days following written notice from Lessee; provided, however, if a reasonable time to
cure such default would exceed 30 days, Lessor shall not be in default so long as Lessor begins to
cure such default within 30 days of receiving written notice from Lessee and thereafter completes
the curing of such default within a reasonable period of time following the receipt of such written
notice from Lessee; or

          (b) The occurrence of a Bankruptcy Event.

     9.4 Lessee’s Remedies. In the event of any such default under or breach of the terms
of this Lease by Lessor, Lessee may, at Lessee’s option, at any time thereafter that such default
or breach remains uncured, after ten days prior written notice to Lessee, perform any act that
Lessor is required to do or perform any act or to pay any sum to a Third Party, at Lessor’s expense
(to the extent the terms of this Lease require such performance at Lessor’s expense) or pay such
sum for and on behalf of Lessor, and the amounts so expended by Lessee shall be repayable on
demand, and bear interest from the date expended by Lessee until paid at the Post-Maturity Rate.
Lessee may, at Lessee’s option, deduct any such amounts so expended by Lessee from the Rent and any
other amounts owed hereunder or under any Ancillary Agreement and any such action on the part of
Lessee shall be in addition to any other remedy that may be available to Lessee for default or
breach of contract, or otherwise, including the right of setoff.

ARTICLE X

INDEMNITY

     10.1 Indemnification by Lessor. Lessor agrees to indemnify, defend, protect, save and
keep harmless Lessee and its Affiliates and their respective officers, directors, shareholders,
unitholders, members, partners, managers, agents, employees, representatives, successors and
assigns (collectively, the “Lessee Indemnified Parties”) from and against any and all
liabilities,

12

 

obligations, losses, damages, penalties, demands, claims (including claims involving strict or
absolute liability in tort), actions, suits, costs, expenses and disbursements (including
reasonable legal fees and expenses) of any kind and nature whatsoever (collectively, the
“Claims”) which may be imposed on, incurred by or asserted against any of the Lessee
Indemnified Parties, in any way relating to or arising out of (a) any failure to perform any
covenant or agreement made or undertaken by Lessor in this Lease, or (b) the exercise of Lessor’s
rights and obligations under Section 2.2(b); provided, however, Lessor shall not have any
obligation to indemnify the Lessee Indemnified Parties for any such Claim under clauses (a) or (b)
to the extent resulting from or arising out of the willful misconduct or negligence (standard
negligence or gross negligence) of any of the Lessee Indemnified Parties. To the extent that the
Lessee Indemnified Parties in fact receive full indemnification payments from Lessor under the
indemnification provisions of this Section 10.1, Lessor shall be subrogated to the Lessee
Indemnified Parties’ rights with respect to the transaction or event requiring or giving rise to
such indemnity. NOTWITHSTANDING ANYTHING CONTAINED IN THIS LEASE TO THE CONTRARY, IN NO EVENT
SHALL LESSOR BE LIABLE FOR INCIDENTAL, INDIRECT, SPECIAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL
DAMAGES, LOST PROFITS OR OTHER BUSINESS INTERRUPTION DAMAGES IN TORT, CONTRACT OR OTHERWISE UNDER
OR ON ACCOUNT OF THIS LEASE, EXCEPT THOSE PAYABLE TO THIRD PARTIES FOR WHICH LESSOR WOULD BE LIABLE
UNDER THIS SECTION.

     10.2 Indemnification by Lessee. Lessee agrees to indemnify, defend, protect, save and
keep harmless Lessor and its Affiliates, and their respective officers, directors, shareholders,
unitholders, members, partners, managers, agents, employees, representatives, successors and
assigns (collectively, the “Lessor Indemnified Parties”) from and against any and all
Claims which may be imposed on, incurred by or asserted against the Lessor Indemnified Parties, in
any way and to the extent relating to or arising out of (a) any failure to perform any covenant or
agreement made or undertaken by Lessee in this Lease, but expressly excluding any Claims arising
pursuant to Lessee’s non-compliance with any Environmental Law or the release of any Hazardous
Substance (such Claims to be addressed pursuant to the indemnification obligations of the Omnibus
Agreement), or (b) the exercise of Lessee’s rights under Section 2.2(a); provided, however,
Lessee shall not have any obligation to indemnify the Lessor Indemnified Parties for any such Claim
under clauses (a) or (b) to the extent resulting from or arising out of the willful misconduct or
negligence (standard negligence or gross negligence) of any of the Lessor Indemnified Parties. To
the extent that the Lessor Indemnified Parties in fact receive full indemnification payments from
Lessee under the indemnification provisions of this Section 10.2, Lessee shall be
subrogated to the Lessor Indemnified Parties’ rights with respect to the transaction or event
requiring or giving rise to such indemnity. NOTWITHSTANDING ANYTHING CONTAINED IN THIS LEASE TO
THE CONTRARY, IN NO EVENT SHALL LESSEE BE LIABLE FOR INCIDENTAL, INDIRECT, SPECIAL, PUNITIVE,
EXEMPLARY OR CONSEQUENTIAL DAMAGES, LOST PROFITS OR OTHER BUSINESS INTERRUPTION DAMAGES IN TORT,
CONTRACT OR OTHERWISE UNDER OR ON ACCOUNT OF THIS LEASE, EXCEPT THOSE PAYABLE TO THIRD PARTIES FOR
WHICH LESSEE WOULD BE LIABLE UNDER THIS SECTION.

     10.3 Matters Involving a Third Party. If any Third Party shall notify either Lessor
or Lessee with respect to any action or claim by a Third Party (a “Third-Party Claim”) that
may give rise to a right to claim for indemnification against the other Party under Section
10.1 or

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Section 10.2, then the Indemnified Party shall promptly notify the Indemnifying Party
thereof in writing; provided, however, that failure to give timely notice shall not affect the
right to indemnification to the extent such failure to give timely notice is not prejudicial to the
Indemnifying Party.

     10.4 Survival. Notwithstanding anything contained in this Lease to the contrary, the
provisions of this Article X shall survive the expiration or earlier termination of this
Lease.

     10.5 Ancillary Agreements. The Ancillary Agreements contain additional indemnity
provisions. The indemnities contained in this Article X are in addition to and not in lieu
of the indemnity provisions contained in the Ancillary Agreements.

ARTICLE XI

GENERAL PROVISIONS

     11.1 Estoppel Certificates. Lessee and Lessor shall, at any time and from time to
time upon not less than 20 days prior written request from the other party, execute, acknowledge
and deliver to the other a statement in writing (a) certifying that this Lease is unmodified and in
full force and effect (or, if modified, stating the nature of such modification and certifying that
this Lease, as so modified, is in full force and effect) and the date to which Rent and other
charges are paid, and (b) acknowledging that there are not, to the executing party’s knowledge, any
uncured defaults on the part of the other party hereunder (or specifying such defaults, if any are
claimed). Any such statement may be conclusively relied upon by any prospective purchaser of the
Premises or the leasehold evidenced by this Lease or any lender with respect to the Premises or the
leasehold evidenced by this Lease. Nothing in this Section 11.1 shall be construed to
waive the conditions elsewhere contained in this Lease applicable to assignment or subletting of
the Premises by Lessee.

     11.2 Severability. The invalidity or unenforceability of any provision of this Lease,
as determined by a court of competent jurisdiction, shall in no way affect the validity or
enforceability of any other provision hereof.

     11.3 Time of Essence. Time is of the essence in the performance of all obligations
falling due hereunder.

     11.4 Captions. The headings to Articles, Sections and other subdivisions of this
Lease are inserted for convenience of reference only and will not affect the meaning or
interpretation of this Lease.

     11.5 Entire Agreement; Amendment. This Lease, including the exhibits and schedules
attached hereto, constitutes the entire agreement and understanding between the parties hereto with
respect to the lease of the Premises, and supersedes all prior and contemporaneous agreements and
undertakings of the parties, in connection herewith. This Lease may be modified in writing only,
signed by the parties in interest at the time of modification.

     11.6 Schedules and Exhibits. All schedules and exhibits hereto which are referred to
herein are hereby made a part hereof and incorporated herein by such reference.

14

 

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

          Notices to Lessor:

c/o HollyFrontier Corporation

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attn: President

Email address: president@hollyfrontier.com

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

c/o HollyFrontier Corporation

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attn: General Counsel

Email address: generalcounsel@hollyfrontier.com

          Notices to Lessee:

c/o Holly Energy Partners, L.P.

2828 N. Harwood, Suite 1300

Dallas, TX 75201

Attn: President

Email address: president@hollyenergy.com

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

c/o Holly Energy Partners, L.P.

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attn: General Counsel

Email address: generalcounsel@hollyenergy.com

     Any Party may at any time change its address for service from time to time by giving notice to
the other Parties in accordance with this Section 11.7.

15

 

     11.8 Waivers. No waiver or waivers of any breach or default or any breaches or
defaults by either Party of any term, condition or liability of or performance by the other party
of any duty or obligation hereunder shall be deemed or construed to be a waiver or waivers of
subsequent breaches or defaults of any kind, character or description under any circumstance. The
acceptance of Rent hereunder by Lessor shall not be a waiver of any preceding breach by Lessee of
any provision hereof, other than the failure of Lessee to pay the particular Rent so accepted,
regardless of Lessor’s knowledge of such preceding breach at the time of acceptance of such Rent.

     11.9 No Partnership. The relationship between Lessor and Lessee at all times shall
remain solely that of landlord and tenant and shall not be deemed a partnership or joint venture.

     11.10 No Third Party Beneficiaries. Subject to the provisions of Article X
and Section 11.14 hereof, this Lease inures to the sole and exclusive benefit of Lessor and
Lessee, their respective Affiliates, successors, legal representatives, sublessees and assigns, and
confers no benefit on any third party.

     11.11 Waiver of Landlord’s Lien. To the extent permitted by Law, Lessor hereby
expressly waives any and all liens (constitutional, statutory, contractual or otherwise) upon
Lessee’s personal property now or hereafter installed or placed in or on the Premises, which
otherwise might exist to secure payment of the sums herein provided to be paid by Lessee to Lessor.

     11.12 Mutual Cooperation; Further Assurances. Upon request by either Party from time
to time during the Term, each Party hereto agrees to execute and deliver all such other and
additional instruments, notices and other documents and do all such other acts and things as may be
reasonably necessary to carry out the purposes of this Lease and to more fully assure the Parties’
rights and interests provided for hereunder. Each of Lessor and Lessee agrees to reasonably
cooperate with the other on all matters relating to required Permits and regulatory compliance by
either Lessee or Lessor in respect of the Premises so as to ensure continued full operation of the
Premises by Lessee pursuant to the terms of this Lease.

     11.13 Recording. Upon the request of Lessor or Lessee, Lessor and Lessee shall
execute, acknowledge, deliver and record a “short form” memorandum of this Lease in the form of
Exhibit B attached hereto and made a part hereof for all purposes. Promptly upon request by Lessor
at any time following the expiration or earlier termination of this Lease, however such termination
may be brought about, Lessee shall execute and deliver to Lessor an instrument, in recordable form,
evidencing the termination of this Lease and the release by Lessee of all of Lessee’s right, title
and interest in and to the Premises existing under and by virtue of this Lease (the “Lessee
Release”) and Lessee grants Lessor an irrevocable power of attorney coupled with an interest
for the purpose of executing the Lessee Release in the name of the Lessee. This Section
11.13 shall survive the termination of this Lease.

     11.14 Binding Effect. Except as herein otherwise expressly provided, this Lease shall
be binding upon and inure to the benefit of the Parties and their respective successors, sublessees
and assigns. Nothing in this Section shall be construed to waive the conditions elsewhere
contained in this Lease applicable to assignment or subletting of the Premises by the Parties.

16

 

     11.15 Choice of Law. The provisions of this Lease shall be governed by and construed
in accordance with the laws of the State of Kansas, excluding any conflicts-of-law rule or
principle that might require the application of laws of another jurisdiction.

     11.16 Warranty of Peaceful Possession. Lessor covenants and warrants that Lessee,
upon paying the Rent reserved hereunder and observing and performing all of the covenants,
conditions and provisions on Lessee’s part to be observed and performed hereunder, may peaceably
and quietly have, hold, occupy, use and enjoy, and, subject to the terms of this Lease, shall have
the full, exclusive, and unrestricted use and enjoyment of, all the Premises during the Term for
the purposes permitted herein, and Lessor agrees to warrant and forever defend title to the
Premises against the claims of any and all persons whomsoever lawfully claiming or to claim the
same or any part thereof.

     11.17 Force Majeure. In the event of Lessor or Lessee being rendered unable, wholly
or in part, by Force Majeure to carry out its obligations under this Lease, other than to make
payments due hereunder and the obligations under Section 11.16, it is agreed that on such
Party’s giving notice and full particulars of such Force Majeure to the other Party as soon as
practicable after the occurrence of the cause relied on, then the obligations of the Parties, so
far as they are affected by such Force Majeure, shall be suspended during the continuance of any
inability so caused but for no longer period, and such cause shall, as far as possible, be remedied
with all reasonable dispatch. It is understood and agreed that the settlement of strikes or
lockouts shall be entirely within the discretion of the Party having the difficulty, and that the
above requirements that any Force Majeure shall be remedied with all reasonable dispatch shall not
require the settlement of strikes or lockouts by acceding to the demands of the opposing party when
such course is inadvisable in the discretion of the Party having the difficulty. Notwithstanding
anything in this Lease to the contrary, inability of a Party to make payments when due, be
profitable or to secure funds, arrange bank loans or other financing, obtain credit or have
adequate capacity or production (other than for reasons of Force Majeure) shall not be regarded as
events of Force Majeure.

     11.18 Survival. All obligations of Lessor and Lessee that shall have accrued under
this Lease prior to the expiration or earlier termination hereof shall survive such expiration or
termination to the extent the same remain unsatisfied as of the expiration or earlier termination
of this Lease. Lessor and Lessee further expressly agree that all provisions of this Lease which
contemplate performance after the expiration or earlier termination hereof shall survive such
expiration or earlier termination of this Lease.

     11.19 AS IS, WHERE IS. SUBJECT TO ALL OF THE OBLIGATIONS OF LESSOR UNDER THIS LEASE
INCLUDING THOSE SET FORTH IN ARTICLE V, ARTICLE X AND SECTION 11.16, LESSEE
HEREBY ACCEPTS THE PREMISES “AS IS”, “WHERE IS”, AND “WITH ALL FAULTS”, AND LESSOR MAKES NO
REPRESENTATIONS OR WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, UNDER THIS LEASE AS TO THE PHYSICAL
CONDITION OF THE PREMISES, INCLUDING THE PREMISES’ MERCHANTABILITY, HABITABILITY, CONDITION,
FITNESS, OR SUITABILITY FOR ANY PARTICULAR USE OR PURPOSE.

17

 

     11.20 Relocation of Pipelines; Amendment. If Lessor elects to move certain pipelines
within the Refinery Site, and such relocation of the pipelines requires relocation of any of the
Relevant Assets, then this Agreement shall continue in full force and effect; provided, however,
the Parties shall execute an amendment hereto reflecting the new location(s) of the Relevant
Assets.

     11.21 Option. Following the termination or expiration of the Throughput Agreement,
including any renewal, extension, or replacement agreement thereof subject to Section 7 of the
Throughput Agreement, Lessor shall have an option, and Lessee hereby grants such option, to
purchase the Relevant Assets at a cost equal to the fair market value thereof, as reasonably
determined by Lessor and Lessee. In the event that Lessor and Lessee cannot agree as to the fair
market value of the Relevant Assets, each party shall select a qualified appraiser. The two
appraisers shall give their opinion of the fair market value of the Relevant Assets within 20 days
after their retention. In the event the opinions of the two appraisers differ and, after good
faith efforts over the succeeding 20-day period, they cannot mutually agree, the appraisers shall
immediately and jointly appoint a third qualified appraiser. The third appraiser shall immediately
(within five days) choose either the determination of Lessor’s appraiser or Lessee’s appraiser and
such choice of this third appraiser shall be final and binding on Lessor and Lessee. Each party
shall pay its own costs for its appraiser. Following the determination of the fair market value of
the Relevant Assets by the appraisers, the parties shall equally share the costs of any third
appraiser. Upon Lessor’s exercise of the option granted pursuant to this Section, Lessor and
Lessee shall cooperate to convey the Relevant Assets from Lessee to Lessor. The terms and
conditions of this Section 11.21 shall survive the termination or expiration of this
Agreement or the Throughput Agreement. If Lessor chooses to exercise its option granted pursuant
to this Section, the sale of the Relevant Assets shall be subject to the receipt of any consents or
waivers required pursuant to the Second Amended and Restated Credit Agreement, dated as of February
14, 2011 (the “Credit Agreement”), among Holly Energy Partners — Operating, L.P., Wells
Fargo Bank, N.A., individually and as Administrative Agent, Union Bank, N.A., as administrative
agent under the Prior Credit Agreement (as defined in the Credit Agreement) and syndication agent,
BBVA Compass Bank and U.S. Bank, N.A., as co-documentation agents, and each of the Lenders (as
defined in the Credit Agreement), as such agreement may be amended, restated, otherwise modified or
refinanced from time to time.

[Remainder of Page Intentionally Left Blank]

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     The parties hereto have executed this Lease to be effective as of the Commencement Date.

	 	 	 	 	 	 	 

	 	LESSOR:	 	 
	 
	 	 	 	 	 	 
	 	 	FRONTIER EL DORADO REFINING LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James M. Stump	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	James M. Stump	 	 
	 

	 	Title:
	 	Senior Vice President, Refinery Operations	 	 
	 
	 	 	 	 	 	 
	 	LESSEE:	 	 
	 
	 	 	 	 	 	 
	 	 	EL DORADO LOGISTICS LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Mark T. Cunningham	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Mark T. Cunningham	 	 
	 

	 	Title:
	 	Vice President, Operations	 	 

[Signature Page to Lease and Access Agreement (El Dorado)]

 

 

EXHIBIT A

See attached.

A -1

 

 

EXHIBIT B

MEMORANDUM OF LEASE 

     THIS MEMORANDUM OF LEASE (this “Memorandum”) is made and entered into as of November
9, 2011 to be effective as of 12:01 a.m. Dallas, Texas time on November 1, 2011 to reflect the
existence of a Lease and Access Agreement dated of even date herewith, by and between FRONTIER EL
DORADO REFINING LLC, a limited liability company organized and existing under the laws of Delaware,
having an office address at 2828 N. Harwood, Suite 1300, Dallas, Texas 75201 (“Lessor”),
and EL DORADO LOGISTICS LLC, a limited liability company organized and existing under the laws of
Delaware, having an office address at 2828 N. Harwood, Suite 1300, Dallas, Texas 75201
(“Lessee”). Such Lease and Access Agreement is herein referred to as the “Ground
Lease”. Lessor and Lessee are collectively referred to as the “Parties” and
individually as a “Party”.

RECITALS

     A. Lessor is the owner of those certain tracts or parcels of land and appurtenant rights on
which the Relevant Assets (as defined below) are situated (“Lessor’s Property”).

     B. Pursuant to the terms of that certain LLC Interest Purchase Agreement (the “Purchase
Agreement”), dated effective as of November 1, 2011, by and among HollyFrontier Corporation, a
Delaware corporation, Lessor and Frontier Refining LLC, a Delaware limited liability company, as
Sellers, Holly Energy Partners — Operating, L.P., a Delaware limited partnership (the
“Operating Partnership”), as Buyer, and Holly Energy Partners, L.P., a Delaware limited
partnership, the Operating Partnership acquired all of the issued and outstanding limited liability
company interests of Lessee, the owner of the certain assets (the “Relevant Assets”)
located on the real property more particularly described on Exhibit A annexed hereto and
made a part hereof (the “Premises”).

     C. For good and valuable consideration, the receipt and legal sufficiency of which is hereby
acknowledged, Lessor leases to Lessee and Lessee leases from Lessor the Premises in accordance with
the terms of the Ground Lease.

 

 

     D. Lessor has granted to Lessee certain rights of access and use to those portions of Lessor’s
Property that are not part of the Premises (the “Refinery and Terminal Site”).

     E. Lessor and Lessee have entered into the Ground Lease and desire to give public notice of
the existence of certain of their rights and agreements thereunder. Capitalized terms which are
used but not defined herein shall have the meanings given to them in the full text of the Ground
Lease.

	 	 	NOW, THEREFORE, the Parties do hereby give public notice as follows:

     1. Term of Ground Lease. The initial Term of the Ground Lease commences on November
1, 2011, and terminates on October 31, 2061, and after such date the Term of the Ground Lease shall
be automatically renewed for a maximum of four (4) successive ten-year periods thereafter unless
the Term of the Ground Lease is sooner terminated pursuant to the provisions thereof.

     2. Early Termination Rights. Lessee has the right, in Lessee’s sole and absolute
discretion, to terminate the Ground Lease, without penalty or premium, if Lessee ceases to operate
the Relevant Assets and Additional Improvements (as defined in the Ground Lease), or ceases its
business.

     3. Access Rights of Lessee to the Refinery and Terminal Site. Pursuant to the terms
and provisions of the Ground Lease, Lessee has been granted certain non-exclusive access rights to
use various portions of the Refinery and Terminal Site.

     4. Reservation of Rights of Lessor of Access to the Premises. Pursuant to the terms
of the Ground Lease, Lessor has retained certain rights of access to the Premises for the purposes
set forth in the Ground Lease.

     5. Option Rights. Pursuant to the terms of the Ground Lease, Lessor has an option to
purchase the Relevant Assets under certain terms and conditions.

     6. Ground Lease Governs. This Memorandum has been executed and recorded as notice of
the Ground Lease in lieu of recording the Ground Lease itself. Lessor and Lessee intend that this
instrument be only a memorandum of the Ground Lease, and reference is hereby made to the Ground
Lease itself for all of the terms, covenants and conditions thereof. Lessor and Lessee hereby
covenant and agree that this Memorandum is and shall be subject to the terms and conditions more
particularly set forth in the Ground Lease. This Memorandum is not intended to modify, limit or
otherwise alter the terms, conditions and provisions of the Ground Lease. In the event of any
conflict, ambiguity or inconsistency between the terms and provisions of this Memorandum and the
terms and provisions of the Ground Lease, the terms and provisions of the Ground Lease shall
govern, control and prevail.

[Signature page to follow.]

B - 2

 

 

     IN WITNESS WHEREOF, the undersigned have caused this Memorandum to be executed as of November
9, 2011 to be effective as of November 1, 2011.

	 	 	 	 	 	 	 

	 	 	LESSOR:	 	 
	 
	 	 	 	 	 	 
	 	 	FRONTIER EL DORADO REFINING LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:

Title:
	 	James M. Stump

Senior Vice President, Refinery Operations	 	 
	 
	 	 	 	 	 	 
	 	 	LESSEE:	 	 
	 
	 	 	 	 	 	 
	 	 	EL DORADO LOGISTICS LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Mark T. Cunningham	 	 
	 

	 	Title:
	 	Vice President, Operations	 	 

[Signature Page to Memorandum of Lease]

 

 

	 	 	 

	STATE OF TEXAS

	 	§
	 

	 	§
	COUNTY OF DALLAS

	 	§

     This instrument was acknowledged before me on ______________, 2011, by ______________,
______________ of FRONTIER EL DORADO REFINING LLC, a Delaware limited liability company, on behalf
of said limited liability company.

	 	 	 	 	 

	 

	 	 

Notary Public, State of Texas
	 	 

[Signature Page to Memorandum of Lease (El Dorado)]

 

 

	 	 	 

	STATE OF TEXAS

	 	§
	 

	 	§
	COUNTY OF DALLAS

	 	§

     This instrument was acknowledged before me on ________________, 2011, by ______________,
______________ of EL DORADO LOGISTICS LLC, a Delaware limited liability company, on behalf of said
limited liability company.

	 	 	 

	 

	 	 
	 

	 	Notary Public, State of Texas

[Signature Page to Memorandum of Lease (El Dorado)]

 

 

Exhibit A

Description of Premises

 

 

MEMORANDUM OF LEASE

 

Dated: November 1, 2011

 

MEMORANDUM OF LEASE

Between

BETWEEN

FRONTIER EL DORADO REFINING LLC,

AS LESSOR

AND

EL DORADO LOGISTICS LLC

AS LESSEE

Record and return to:

HollyFrontier Corporation

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attention: Denise C. McWatters

Telecopy: 214.871.3523

 

 

SCHEDULE 1.1(b)

MATTERS WHICH ARE NOT PART OF THE PREMISES

	1.	 	Relevant Assets.
	 
	2.	 	Additional Improvements.

Schedule 1.1(b)

 

 

SCHEDULE 7.4

INSURANCE REQUIREMENTS

     Lessee agrees that during the Term of this Lease it shall maintain property and casualty
insurance (including pollution insurance coverage) on the Premises, the Relevant Assets and the
Additional Improvements in accordance with customary industry practices and with a licensed,
reputable carrier.

Schedule 7.4exv10w1

Exhibit 10.1

EXECUTION VERSION

 

LLC INTEREST PURCHASE AGREEMENT

by and among

HOLLYFRONTIER CORPORATION,

FRONTIER REFINING LLC

and

FRONTIER EL DORADO REFINING LLC

as Sellers,

and

HOLLY ENERGY PARTNERS — OPERATING, L.P.

and

HOLLY ENERGY PARTNERS, L.P.

as Buyer

Effective as of November 1, 2011

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	ARTICLE I DEFINED TERMS
	 	 	1	 
	 
	 	 	 	 
	1.1 Defined Terms
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II PURCHASE OF LLC INTERESTS
	 	 	7	 
	 
	 	 	 	 
	2.1 Transfer of LLC Interests
	 	 	7	 
	2.2 Consideration
	 	 	7	 
	 
	 	 	 	 
	ARTICLE III CLOSING
	 	 	8	 
	 
	 	 	 	 
	3.1 Closing
	 	 	8	 
	3.2 Deliveries by Sellers
	 	 	8	 
	3.3 Deliveries by Buyer
	 	 	9	 
	3.4 Closing Costs; Transfer Taxes and Fees
	 	 	10	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE SELLERS
	 	 	11	 
	 
	 	 	 	 
	4.1 Organization
	 	 	11	 
	4.2 Authorization
	 	 	11	 
	4.3 Company Status
	 	 	11	 
	4.4 No Conflicts or Violations; No Consents or Approvals Required
	 	 	12	 
	4.5 Absence of Litigation
	 	 	12	 
	4.6 Title to LLC Interests; Capitalization
	 	 	12	 
	4.7 No Undisclosed Liabilities
	 	 	13	 
	4.8 No Employees
	 	 	13	 
	4.9 Taxes
	 	 	13	 
	4.10 Brokers and Finders
	 	 	13	 
	4.11 Condition of Assets
	 	 	13	 
	4.12 Title to Assets
	 	 	13	 
	4.13 Permits
	 	 	14	 
	4.14 Banking Relationships
	 	 	14	 
	4.15 Representations Relating to the Unit Consideration
	 	 	14	 
	4.16 Legends
	 	 	14	 
	4.17 WAIVERS AND DISCLAIMERS
	 	 	15	 
	 
	 	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE BUYER
	 	 	16	 
	 
	 	 	 	 
	5.1 Organization
	 	 	16	 
	5.2 Authorization
	 	 	16	 
	5.3 No Conflicts or Violations; No Consents or Approvals Required
	 	 	16	 
	5.4 Absence of Litigation
	 	 	16	 
	5.5 Brokers and Finders
	 	 	16	 
	 
	 	 	 	 
	ARTICLE VI REPRESENTATIONS AND WARRANTIES OF HOLLYFRONTIER
	 	 	17	 
	 
	 	 	 	 
	6.1 Organization
	 	 	17	 
	6.2 Authorization
	 	 	17	 

-i-

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	6.3 No Conflicts or Violations; No Consents or Approvals Required
	 	 	17	 
	6.4 Absence of Litigation
	 	 	17	 
	6.5 Brokers and Finders
	 	 	17	 
	 
	 	 	 	 
	ARTICLE VII REPRESENTATIONS AND WARRANTIES OF THE PARTNERSHIP
	 	 	18	 
	 
	 	 	 	 
	7.1 Organization
	 	 	18	 
	7.2 Authorization
	 	 	18	 
	7.3 No Conflicts or Violations; No Consents or Approvals Required
	 	 	18	 
	7.4 Absence of Litigation
	 	 	18	 
	7.5 Brokers and Finders
	 	 	18	 
	7.6 Validity of Aggregate Units
	 	 	18	 
	 
	 	 	 	 
	ARTICLE VIII COVENANTS
	 	 	19	 
	 
	 	 	 	 
	8.1 Cooperation
	 	 	19	 
	8.2 Additional Agreements
	 	 	19	 
	8.3 Employees
	 	 	19	 
	8.4 Consent Decree
	 	 	19	 
	 
	 	 	 	 
	ARTICLE IX ADDITIONAL AGREEMENTS
	 	 	20	 
	 
	 	 	 	 
	9.1 Further Assurances
	 	 	20	 
	9.2 Tanks Under Construction
	 	 	20	 
	 
	 	 	 	 
	ARTICLE X INDEMNIFICATION
	 	 	21	 
	 
	 	 	 	 
	10.1 Indemnification of Buyer and Sellers
	 	 	21	 
	10.2 Defense of Third-Party Claims
	 	 	21	 
	10.3 Direct Claims
	 	 	22	 
	10.4 Limitations
	 	 	22	 
	10.5 Tax Related Adjustments
	 	 	23	 
	 
	 	 	 	 
	ARTICLE XI MISCELLANEOUS
	 	 	23	 
	 
	 	 	 	 
	11.1 Expenses
	 	 	23	 
	11.2 Notices
	 	 	23	 
	11.3 Severability
	 	 	24	 
	11.4 Governing Law; Waiver of Jury Trial
	 	 	24	 
	11.5 Arbitration Provision
	 	 	24	 
	11.6 Parties in Interest
	 	 	25	 
	11.7 Assignment of Agreement
	 	 	25	 
	11.8 Captions
	 	 	25	 
	11.9 Counterparts
	 	 	25	 
	11.10 Director and Officer Liability
	 	 	26	 
	11.11 Integration
	 	 	26	 
	11.12 Effect of Agreement
	 	 	26	 
	11.13 Amendment; Waiver
	 	 	26	 

-ii-

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	11.14 Survival of Representations and Warranties
	 	 	26	 
	 
	 	 	 	 
	ARTICLE XII GUARANTEE
	 	 	26	 
	 
	 	 	 	 
	12.1 Payment and Performance Guaranty
	 	 	26	 
	12.2 Guaranty Absolute
	 	 	26	 
	12.3 Waiver
	 	 	27	 
	12.4 Subrogation Waiver
	 	 	27	 
	12.5 Reinstatement
	 	 	27	 
	12.6 Continuing Guaranty
	 	 	28	 
	12.7 No Duty to Pursue Others
	 	 	28	 
	 
	 	 	 	 
	ARTICLE XIII INTERPRETATION
	 	 	28	 
	 
	 	 	 	 
	13.1 Interpretation
	 	 	28	 
	13.2 References, Gender, Number
	 	 	29	 

-iii-

 

 

Exhibits:

	 	 	 	 	 

	Exhibit A

	 	-
	 	Cheyenne Throughput Agreement
	Exhibit B

	 	-
	 	El Dorado Throughput Agreement
	Exhibit C

	 	-
	 	El Dorado Note
	Exhibit D

	 	-
	 	Cheyenne Note
	Exhibit E

	 	-
	 	El Dorado Assignment
	Exhibit F

	 	-
	 	Cheyenne Assignment
	Exhibit G

	 	-
	 	Cheyenne Site Services Agreement
	Exhibit H

	 	-
	 	El Dorado Site Services Agreement
	Exhibit I

	 	-
	 	Cheyenne Lease and Access Agreement
	Exhibit J

	 	-
	 	El Dorado Lease and Access Agreement
	Exhibit K

	 	-
	 	Restated Omnibus Agreement
	Exhibit L

	 	-
	 	Subordinate Mortgages/Subordinate Security Agreement

Schedules:

	 	 	 	 	 

	Schedule 1.1(a)

	 	 	 	Cheyenne Assets
	Schedule 1.1(b)

	 	 	 	El Dorado Assets
	Schedule 4.3(a)

	 	-
	 	Company Foreign Qualifications
	Schedule 4.12

	 	-
	 	Title to Assets
	Schedule 4.13

	 	 	 	Permits
	Schedule 4.14

	 	-
	 	Banking Relationships

iv

 

 

LLC INTEREST PURCHASE AGREEMENT

     THIS LLC INTEREST PURCHASE AGREEMENT (this “Agreement”) dated as of November 9, 2011 to be
effective as of the Effective Time (as defined below), is made and entered into by and among
HollyFrontier Corporation, a Delaware corporation (“HollyFrontier”), Frontier Refining LLC, a
Delaware limited liability company (“Frontier Cheyenne”), Frontier El Dorado Refining LLC, a
Delaware limited liability company (“Frontier El Dorado” and collectively with Frontier Cheyenne,
“Sellers”, and each a “Seller”), Holly Energy Partners — Operating, L.P., a Delaware limited
partnership (“Buyer”), and Holly Energy Partners, L.P., a Delaware limited partnership (the
“Partnership”). The above-named entities are sometimes referred to in this Agreement each as a
“Party” and collectively as the “Parties.”

     WHEREAS, Frontier Cheyenne is the sole member of Cheyenne Logistics LLC, a Delaware limited
liability company (“Cheyenne Logistics”), and Frontier El Dorado is the sole member of El Dorado
Logistics LLC, a Delaware limited liability company (“El Dorado Logistics,” each a “Company” and
collectively, the “Companies”);

     WHEREAS, the Cheyenne Logistics is the owner of the Cheyenne Assets (as defined below);

     WHEREAS, the El Dorado is the owner of the El Dorado Assets (as defined below);

     WHEREAS, Buyer, which is wholly owned by the Partnership, wishes to purchase from Sellers, and
Sellers wish to sell to Buyer, all of the issued and outstanding limited liability company
interests of (i) Cheyenne Logistics (the “Cheyenne LLC Interests”) and (ii) El Dorado Logistics
(the “El Dorado LLC Interests” and collectively with the Cheyenne LLC Interests, the “LLC
Interests”) and thereby acquire the Cheyenne Assets and the El Dorado Assets (collectively, the
“Assets”) in exchange for the consideration set forth herein;

     WHEREAS, in connection with the acquisition of the LLC Interests, the Parties wish to (i)
amend certain provisions of the Omnibus Agreement (as defined below), and (ii) to enter into (A) a
throughput agreement regarding the Cheyenne Assets in the form attached hereto as Exhibit A
(the “Cheyenne Throughput Agreement”) and (B) a throughput agreement regarding the El Dorado Assets
in the form attached hereto as Exhibit B (the “El Dorado Throughput Agreement” and
collectively with the Cheyenne Throughput Agreement, the “Throughput Agreements”).

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants set forth herein
and in the Omnibus Agreement (as well as the execution and delivery of the Throughput Agreements by
the Affiliates of Sellers), and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as
follows:

ARTICLE I

DEFINED TERMS

     1.1 Defined Terms. Unless the context expressly requires otherwise, the respective terms
defined in this Section 1.1 shall, when used in this Agreement, have the respective

1

 

meanings herein specified, with each such definition to be equally applicable both to the
singular and the plural forms of the term so defined.

     “Action” shall mean any claim, action, suit, investigation, inquiry, proceeding, condemnation
or audit by or before any court or other Governmental Entity or any arbitration proceeding.

     “Affiliate” means, with respect to a specified person, any other person controlling,
controlled by or under common control with that first person. As used in this definition, the term
“control” includes (i) with respect to any person having voting securities or the equivalent and
elected directors, managers or persons performing similar functions, the ownership of or power to
vote, directly or indirectly, voting securities or the equivalent representing 50% or more of the
power to vote in the election of directors, managers or persons performing similar functions, (ii)
ownership of 50% or more of the equity or equivalent interest in any person and (iii) the ability
to direct the business and affairs of any person by acting as a general partner, manager or
otherwise. Notwithstanding the foregoing, no HollyFrontier Entity will be considered an Affiliate
of an HEP Entity, and no HEP Entity will be considered an Affiliate of a HollyFrontier Entity.

     “Agreement” shall have the meaning set forth in the preamble.

     “Ancillary Documents” means, collectively, the Buyer Ancillary Documents and the Seller
Ancillary Documents.

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

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

     “Assets” shall have the meaning set forth in the preamble.

     “business day” means any day on which banks are open for business in Texas, other than
Saturday or Sunday.

     “Buyer” shall have the meaning set forth in the preamble.

     “Buyer Ancillary Documents” means each agreement, document, instrument or certificate to be
delivered by Buyer, or the Partnership, or their Affiliates, at the Closing pursuant

2

 

to Section 3.3 hereof and each other document or Contract entered into by Buyer, or
the Partnership, or their Affiliates, in connection with this Agreement or the Closing.

     “Buyer Indemnified Costs” means (a) any and all damages, losses, claims, liabilities, demands,
charges, suits, penalties, costs, and expenses (including court costs and reasonable attorneys’
fees and expenses incurred in investigating and preparing for any litigation or proceeding) that
any Buyer Indemnified Parties incurs and that arise out of or relate to any breach of a
representation, warranty or covenant of Frontier El Dorado or Frontier Cheyenne under this
Agreement, and (b) any and all actions, suits, proceedings, claims, demands, assessments,
judgments, costs, and expenses, including reasonable legal fees and expenses, incident to any of
the foregoing. Notwithstanding anything in the foregoing to the contrary, Buyer Indemnified Costs
shall exclude any and all indirect, consequential, punitive, or exemplary damages (other than those
that are a result of (x) a third-party claim for such indirect, consequential, punitive or
exemplary damages or (y) the gross negligence or willful misconduct of Frontier El Dorado or
Frontier Cheyenne).

     “Buyer Indemnified Parties” means Buyer and the Partnership and each officer, director,
partner, manager, employee, consultant, stockholder, and Affiliate of Buyer and the Partnership,
including, without limitation, the Companies.

     “Certificates” has the meaning set forth in Section 2.2(c).

     “Cheyenne Assets” means those assets designated as Cheyenne Assets on Schedule 1.1(a),
provided, however, that such term shall include Tank 108 following conveyance of such tank as
provided by Section 9.2.

     “Cheyenne Assignment” shall have the meaning set forth in Section 3.2(b).

     “Cheyenne LLC Interests” shall have the meaning set forth in the preamble.

     “Cheyenne Logistics” shall have the meaning set forth in the preamble.

     “Cheyenne Note” shall have the meaning set forth in Section 2.2(a)(ii).

     “Cheyenne Refinery” has the meaning given to the term “Refinery” in the Cheyenne Throughput
Agreement.

     “Cheyenne Throughput Agreement” shall have the meaning set forth in the preamble.

     “Cheyenne Units” shall have the meaning set forth in Section 2.2(a)(iv).

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

     “Claimant” shall have the meaning set forth in Section 10.5.

     “Closing” shall have the meaning set forth in Section 3.1.

3

 

     “Closing Date” shall have the meaning set forth in Section 3.1.

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

     “Company” and “Companies” shall have the meanings set forth in the preamble.

     “Consent Decree” shall have the meaning set forth in Section 8.4.

     “Consents” means all notices to, authorizations, consents, Orders or approvals of, or
registrations, declarations or filings with, or expiration of waiting periods imposed by, any
Governmental Entity, and any notices to, consents or approvals of any other third party, in each
case that are required by applicable Law or by Contract in order to consummate the transactions
contemplated by this Agreement and the Ancillary Documents.

     “Contract” means any written or oral contract, agreement, indenture, instrument, note, bond,
loan, lease, mortgage, franchise, license agreement, purchase order, binding bid or offer, binding
term sheet or letter of intent or memorandum, commitment, letter of credit or any other legally
binding arrangement, including any amendments or modifications thereof and waivers relating
thereto.

     “Effective Time” shall have the meaning set forth in Section 3.1.

     “El Dorado Assets” means those assets designated as El Dorado Assets on Schedule
1.1(b) provided, however, that such term shall include Tanks 640 and 641 following conveyance
of such tanks as provided in Section 9.2.

     “El Dorado Assignment” shall have the meaning set forth in Section 3.2(a).

     “El Dorado LLC Interests” shall have the meaning set forth in the preamble.

     “El Dorado Logistics” shall have the meaning set forth in the preamble.

     “El Dorado Note” shall have the meaning set forth in Section 2.2(a)(i).

     “El Dorado Refinery” has the meaning given to the term “Refinery” in the El Dorado Throughput
Agreement.

     “El Dorado Throughput Agreement” shall have the meaning set forth in the preamble.

     “El Dorado Units” shall have the meaning set forth in Section 2.2(a)(iii).

     “Encumbrance” means any mortgage, pledge, charge, hypothecation, claim, easement, right of
purchase, security interest, deed of trust, conditional sales agreement, encumbrance, interest,
option, lien, right of first refusal, right of way, defect in title, encroachments or other
restriction, whether or not imposed by operation of Law, any voting trust or voting agreement,
stockholder agreement or proxy.

     “Frontier Cheyenne” shall have the meaning set forth in the preamble.

     “Frontier El Dorado” shall have the meaning set forth in the preamble.

4

 

     “Governmental Entity” means any Federal, state, local or foreign court or governmental agency,
authority or instrumentality or regulatory body.

     “HEP Entities” means Holly Logistic Services, L.L.C., HEP Logistics Holdings, L.P. and the
Partnership and its direct and indirect subsidiaries.

     “HollyFrontier” shall have the meaning set forth in the preamble.

     “HollyFrontier Entities” means HollyFrontier and its direct and indirect subsidiaries other
than the HEP Entities.

     “Indemnified Costs” means Buyer Indemnified Costs and Seller Indemnified Costs, as applicable.

     “Indemnified Party” means Buyer Indemnified Parties and Seller Indemnified Parties.

     “Indemnifying Party” has the meaning set forth in Section 10.2.

     “Instruction Letter” has the meaning set forth in Section 2.2(c).

     “knowledge” and any variations thereof or words to the same effect shall mean (i) with respect
to HollyFrontier, actual knowledge after reasonable inquiry of the following persons: David L.
Lamp, James M. Stump and George J. Damiris; (ii) with respect to Sellers, actual knowledge after
reasonable inquiry of the following persons: David L. Lamp, James M. Stump and George J. Damiris;
and (iii) with respect to Buyer or the Partnership, actual knowledge after reasonable inquiry of
the following persons: Matthew P. Clifton and Mark T. Cunningham.

     “Laws” means all statutes, laws, rules, regulations, Orders, ordinances, writs, injunctions,
judgments and decrees of all Governmental Entities.

     “LLC Interests” shall have the meaning set forth in the preamble.

     “Material Adverse Effect” means any adverse change, circumstance, effect or condition in or
relating to the assets, financial condition, results of operations, or business of any person that
materially affects the business of such person or that materially impedes the ability of any person
to consummate the transactions contemplated hereby, other than any change, circumstance, effect or
condition in the refining or pipelines industries generally (including any change in the prices of
crude oil, natural gas, natural gas liquids, feedstocks or refined products or other hydrocarbon
products, industry margins or any regulatory changes or changes in Law) or in United States or
global economic conditions or financial markets in general. Any determination as to whether any
change, circumstance, effect or condition has a Material Adverse Effect shall be made only after
taking into account all effective insurance coverages and effective third-party indemnifications
with respect to such change, circumstance, effect or condition.

     “Omnibus Agreement” means that certain Fifth Amended and Restated Omnibus Agreement entered
into and effective as of August 31, 2011, by and among HollyFrontier, Holly Logistic Services,
L.L.C., a Delaware limited liability company, the Partnership, the Operating Partnership, HEP
Logistics GP, L.L.C., a Delaware limited liability company and HEP Logistics

5

 

Holdings, L.P., a Delaware limited partnership, and the other HollyFrontier Affiliates and
Partnership Affiliates signatory thereto, and as amended and restated as of the Closing Date.

     “Order” means any order, writ, injunction, decree, compliance or consent order or decree,
settlement agreement, schedule and similar binding legal agreement issued by or entered into with a
Governmental Entity.

     “Partnership” shall have the meaning set forth in the preamble.

     “Party” and “Parties” shall have the meanings set forth in the preamble.

     “Payment Obligations” shall have the meanings set forth in Section 12.1.

     “Permits” means all material permits, licenses, variances, exemptions, Orders, franchises and
approvals of all Governmental Entities necessary for the lawful ownership and operation of each
Company’s business, including the Assets.

     “Permitted Encumbrances” means (i) statutory liens for current taxes or assessments not yet
due or delinquent or the validity of which are being contested in good faith by appropriate
proceedings; (ii) mechanics’, carriers’, workers’, repairmen’s, landlord’s and other similar liens
imposed by law arising or incurred in the ordinary course of business with respect to charges not
yet due and payable; and (iii) such other encumbrances, if any, which were not incurred in
connection with the borrowing of money or the advance of credit and which do not materially detract
from the value of or interfere with the present use, or any use presently anticipated by the
Company, of the property subject thereto or affected thereby, and including without limitation
capital leases.

     “person” means any individual, firm, corporation, partnership, limited liability company,
trust, joint venture, Governmental Entity or other entity.

     “Purchase Price” shall have the meaning set forth in Section 2.2(a).

     “Refineries” means the Cheyenne Refinery and the El Dorado Refinery.

     “Respondent” shall have the meaning set forth in Section 10.5.

     “Restated Omnibus Agreement” shall have the meaning set forth in Section 3.2(j).

     “Securities Act” shall have the meaning set forth in Section 4.15.

     “Sellers” shall have the meaning set forth in the preamble.

     “Seller Ancillary Documents” shall mean each agreement, document, instrument or certificate to
be delivered by Frontier El Dorado or Frontier Cheyenne, or their Affiliates, at the Closing
pursuant to Section 3.2 hereof and each other document or Contract entered into by Frontier
El Dorado or Frontier Cheyenne, or their Affiliates, in connection with this Agreement or the
Closing.

     “Seller Indemnified Costs” means (a) any and all damages, losses, claims, liabilities,
demands, charges, suits, penalties, costs, and expenses (including court costs and reasonable

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attorneys’ fees and expenses incurred in investigating and preparing for any litigation or
proceeding) that any of Seller Indemnified Parties incurs and that arise out of or relate to any
breach of a representation, warranty or covenant of Buyer or the Partnership under this Agreement,
and (b) any and all actions, suits, proceedings, claims, demands, assessments, judgments, costs,
and expenses, including reasonable legal fees and expenses, incident to any of the foregoing.
Notwithstanding anything in the foregoing to the contrary, Seller Indemnified Costs shall exclude
any and all indirect, consequential, punitive or exemplary damages (other than those that are a
result of (x) a third-party claim for such indirect, consequential, punitive or exemplary damages
or (y) the gross negligence or willful misconduct of Buyer or the Partnership).

     “Seller Indemnified Parties” means Sellers and each officer, director, partner, manager,
employee, consultant, stockholder, and Affiliate of Sellers, including, without limitation,
HollyFrontier.

     “third-party action” has the meaning set forth in Section 10.2.

     “Throughput Agreement” shall have the meaning set forth in the recitals.

     “Under Construction Tanks” has the meaning set forth in Section 9.2.

     “Unit Consideration” has the meaning set forth in Section 2.2(a)(iv).

ARTICLE II

PURCHASE OF LLC INTERESTS

     2.1 Transfer of LLC Interests. Subject to all of the terms and conditions of this Agreement,
(a) Frontier Cheyenne hereby sells, transfers and conveys to Buyer, and Buyer hereby purchases and
acquires from Frontier Cheyenne, the Cheyenne LLC Interests, free and clear of all Encumbrances,
and (b) Frontier El Dorado hereby sells, transfers and conveys to Buyer, and Buyer hereby purchases
and acquires from Frontier El Dorado, the El Dorado LLC Interests, free and clear of all
Encumbrances.

     2.2 Consideration.

          (a) The aggregate consideration to be paid by Buyer for the LLC Interests shall be
$340,000,000 (the “Purchase Price”), to be paid as follows:

     (i) $100,000,000 senior unsecured promissory note payable to Frontier El Dorado
(or an Affiliate of HollyFrontier designated by Frontier El Dorado) in the form
attached hereto as Exhibit C (the “El Dorado Note”);

     (ii) $50,000,000 senior unsecured promissory note payable to Frontier Cheyenne
(or an Affiliate of HollyFrontier designated by Frontier Cheyenne) in the form
attached hereto as Exhibit D (the “Cheyenne Note”);

     (iii) 2,605,210 Common Units of the Partnership issued to Frontier El Dorado
(or an Affiliate of HollyFrontier designated by Frontier El Dorado) (the “El Dorado
Units”); and

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     (iv) 1,202,405 Common Units of the Partnership issued to Frontier Cheyenne (or
an Affiliate of HollyFrontier designated by Frontier Cheyenne) (the “Cheyenne Units”
and collectively with the El Dorado Units, the “Unit Consideration”).

          (b) The El Dorado Note shall be delivered by the Buyer to Frontier El Dorado (or such
designee) at the Closing, and the Cheyenne Note shall be delivered by the Buyer to Frontier
Cheyenne (or such designee) at the Closing.

          (c) The Unit Consideration shall be paid by the Partnership, on behalf of Buyer, at the
Closing by delivery of a letter to the Partnership’s transfer agent (the “Instruction Letter”)
instructing such transfer agent to deliver certificates representing the Unit Consideration issued
in the name of Sellers or their designees (the “Certificates”), which Instruction Letter shall be
in a form and substance reasonably acceptable to both Buyer and Sellers.

ARTICLE III

CLOSING

     3.1 Closing. The closing of the transactions contemplated hereby (the “Closing”) shall take
place simultaneously with the execution of this Agreement. The date of the Closing is referred to
herein as the “Closing Date” and the Closing is deemed to be effective as of 12:01 a.m., Dallas,
Texas time, on November 1, 2011 (the “Effective Time”); provided, however, that the issuance of the
Unit Consideration shall be effective at the time such Common Units are actually issued on the
Closing Date and such Common Units shall not be considered outstanding until such issuance.

     3.2 Deliveries by Sellers. At the Closing, Sellers shall deliver, or cause to be delivered,
to Buyer the following:

          (a) A counterpart to the assignment of limited liability company interests conveying the El
Dorado LLC Interests to Buyer, substantially in the form of Exhibit E attached hereto (the
“El Dorado Assignment”), duly executed by Frontier El Dorado.

          (b) A counterpart to the assignment of limited liability company interests conveying the
Cheyenne LLC Interests to Buyer substantially in the form of Exhibit F attached hereto (the
“Cheyenne Assignment”), duly executed by Frontier Cheyenne.

          (c) The original minute books, company books and membership registers for the Companies.

          (d) A counterpart of El Dorado Throughput Agreement, duly executed by the applicable Seller
and HollyFrontier.

          (e) A counterpart of Cheyenne Throughput Agreement, duly executed by the applicable Seller and
HollyFrontier.

          (f) A counterpart of the Site Services Agreement (Cheyenne) substantially in the form of
Exhibit G attached hereto (the “Cheyenne Site Services Agreement”), duly executed by
Frontier Cheyenne.

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          (g) A counterpart of the Site Services Agreement (El Dorado) substantially in the form of
Exhibit H attached hereto (the “El Dorado Site Services Agreement”), duly executed by
Frontier El Dorado.

          (h) A counterpart of the Lease and Access Agreement (Cheyenne) substantially in the form of
Exhibit I attached hereto (the “Cheyenne Lease and Access Agreement”), duly executed by the
Frontier Cheyenne.

          (i) A counterpart of the Lease and Access Agreement (El Dorado) substantially in the form of
Exhibit J attached hereto (the “El Dorado Lease and Access Agreement”), duly executed by
the Frontier El Dorado.

          (j) A counterpart of the Sixth Amended and Restated Omnibus Agreement substantially in the
form of Exhibit K attached hereto (the “Restated Omnibus Agreement”), duly executed by
HollyFrontier and each applicable subsidiary of HollyFrontier (excluding the HEP Entities).

          (k) Evidence in form and substance reasonably satisfactory to Buyer of the release and
termination of all Encumbrances on the LLC Interests and on the Cheyenne Assets and the El Dorado
Assets.

          (l) To the extent applicable, assignment documents, duly executed by the applicable Seller,
assigning each of the Permits held by such Seller which are assignable by such Seller to Buyer in
accordance with applicable Law (except for environmental Permits, which are dealt with separately
under the El Dorado Throughput Agreement and Cheyenne Throughput Agreement).

          (m) A properly executed certificate, in the form prescribed by Treasury regulations under
Section 1445 of the Code, stating that HollyFrontier (the person from whom each Seller is
disregarded as an entity for U.S. federal income tax purposes) is not a “foreign person” within the
meaning of Section 1445 of the Code.

     3.3 Deliveries by Buyer. At the Closing (or such later date as may be set forth below), Buyer
shall deliver, or cause to be delivered, to Sellers the following:

          (a) The El Dorado Note and the Cheyenne Note as provided in Section 2.2(a).

          (b) The Instruction Letter as provided in Section 2.2(c).

          (c) Evidence in form and substance reasonably satisfactory to Sellers that the Unit
Consideration has been approved for listing by the New York Stock Exchange subject to official
notice of issuance.

          (d) A counterpart to each of the El Dorado Assignment and the Cheyenne Assignment, duly
executed by Buyer.

          (e) A counterpart of each Throughput Agreement, duly executed by Buyer and the Partnership.

9

 

          (f) A counterpart of the Cheyenne Site Services Agreement, duly executed by Cheyenne
Logistics.

          (g) A counterpart of the El Dorado Site Services Agreement, duly executed by El Dorado
Logistics.

          (h) A counterpart of the Cheyenne Lease and Access Agreement, duly executed by Cheyenne
Logistics.

          (i) A counterpart of the El Dorado Lease and Access Agreement, duly executed by El Dorado
Logistics.

          (j) A counterpart of the Restated Omnibus Agreement, duly executed by the Partnership and each
applicable subsidiary of the Partnership.

          (k) Simultaneous with the delivery of senior mortgages by Buyer as required under its credit
facility (but in no event later than 30 days following the Closing Date), Buyer shall execute and
deliver to Sellers the subordinate mortgages, subordinated security agreement and deeds of trust
substantially in the form of Exhibit L attached hereto, or in such alternative form that
would provide security in favor of HollyFrontier and/or its Affiliates in the event of a breach of
the obligations of Buyer under the Throughput Agreements, such alternative form to be reasonably
acceptable to the applicable parties to such agreements.

     3.4 Closing Costs; Transfer Taxes and Fees.

          (a) Allocation of Costs. Buyer shall pay the cost of all sales, transfer and use
taxes arising out of the transfer of the LLC Interests and all costs and expenses (including
recording fees and real estate transfer taxes and real estate transfer stamps) incurred in
connection with obtaining or recording title to the Company’s assets.

          (b) Reimbursement. If Buyer, on the one hand, or Sellers, on the other hand, pays any
tax agreed to be borne by the other Party under this Agreement, such other Party shall promptly
reimburse the paying Party for the amounts so paid. If any Party receives any tax refund or credit
applicable to a tax paid by another Party hereunder, the receiving Party shall promptly pay such
amounts to the Party entitled thereto.

          (c) Prorations. On the Closing Date, or as promptly as practicable following the
Closing Date, but in no event later than 60 calendar days thereafter, the real, if any, and
personal property taxes, water, gas, electricity and other utilities with respect to the Assets and
the real estate interests and rights associated with the Assets and local business or other license
fees to the extent assigned and other similar periodic charges payable with respect to the Assets
or the Companies shall be prorated between Buyer, on the one hand, and Sellers, on the other hand,
effective as of the Effective Time with Sellers being responsible for amounts related to the period
prior to but excluding the Effective Time and Buyer being responsible for amounts related to the
period at and after the Effective Time. If the final property tax rate or final assessed value for
the current tax year is not established by the Closing Date, the prorations shall be made on the
basis of the rate or assessed value in effect for the preceding tax year and shall be adjusted when
the exact amounts are determined. All such prorations shall be based upon the most recent
available assessed value available prior to the Closing Date.

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ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE SELLERS

     Sellers hereby jointly and severally represent and warrant to Buyer that as of the date of
this Agreement:

     4.1 Organization. Each Seller is an entity duly organized, validly existing and in good
standing under the Laws of its state of organization.

     4.2 Authorization. Each Seller has full limited liability company power and authority to
execute, deliver, and perform this Agreement and any Seller Ancillary Documents to which it is a
party. The execution, delivery, and performance by each Seller of this Agreement and the Seller
Ancillary Documents to which it is a party and the consummation by such Seller of the transactions
contemplated hereby and thereby, have been duly authorized by all necessary limited liability
company action of such Seller. This Agreement has been duly executed and delivered by Sellers and
constitutes, and each such Seller Ancillary Document executed or to be executed by each Seller has
been, or when executed will be, duly executed and delivered by the applicable Seller and
constitutes, or when executed and delivered will constitute, a valid and legally binding obligation
of the applicable Seller, enforceable against it in accordance with their terms, except to the
extent that such enforceability may be limited by (i) applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or other similar Laws affecting creditors’ rights
and remedies generally and (ii) equitable principles which may limit the availability of certain
equitable remedies (such as specific performance) in certain instances.

     4.3 Company Status.

          (a) Each Company is duly organized, validly existing and in good standing under the laws of
the State of Delaware and (i) has all requisite limited liability company power and authority to
own, operate, use or lease its properties and assets and to carry on its business as it is now
being conducted, and (ii) is duly qualified to do business and is in good standing in each of the
jurisdictions in which the ownership, operation or leasing of its properties and assets and the
conduct of its business requires it to be so qualified, licensed or authorized, except, in the case
of clause (ii), where the failure to have such power and authority or to be so qualified, licensed
or authorized would not, individually or in the aggregate, be reasonably likely to cause a Material
Adverse Effect. Seller Disclosure Schedule 4.3(a) lists all jurisdictions in which each
Company is qualified to do business.

          (b) Neither Company directly or indirectly, owns any interest in any corporation, partnership,
limited liability company, limited partnership, joint venture or other business association or
entity, foreign or domestic.

          (c) Cheyenne Logistics was formed for the purpose of acquiring the Cheyenne Assets (which
acquisition occurred effective October 25, 2011), has no assets except for the Cheyenne Assets, and
has not conducted any business other than the operation of the Cheyenne Assets beginning effective
October 25, 2011. El Dorado Logistics was formed for the purpose of acquiring the El Dorado Assets
(which acquisition occurred effective October 25, 2011), has no assets except for the El Dorado
Assets, and has not conducted any business other than the operation of the El Dorado Assets
beginning effective October 25, 2011.

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          (d) Sellers have made available to Buyer a copy of the certificate of formation and limited
liability company agreement of each Company, each copy being complete and correct and in full force
and effect on the date hereof, and no amendment or modification of any such document has been
filed, recorded or is pending or contemplated. Neither Company is in violation of any provision of
its certificate of formation or limited liability company agreement.

     4.4 No Conflicts or Violations; No Consents or Approvals Required.

          (a) The execution, delivery and performance by each Seller of this Agreement and the other
Seller Ancillary Documents to which it is a party does not, and the consummation of the
transactions contemplated hereby and thereby will not, (i) violate, conflict with, or result in any
breach of any provision of Seller’s organizational documents or (ii) subject to obtaining the
Consents or making the registrations, declarations or filings set forth in the next sentence,
violate in any material respect any applicable Law or material contract binding upon such Seller.
No Consent of any Governmental Entity or any other person is required for either Seller in
connection with the execution, delivery and performance of this Agreement and the Seller Ancillary
Documents to which each Seller is a party or the consummation of the transactions contemplated
hereby or thereby.

          (b) The consummation of the transactions contemplated by this Agreement and the other Seller
Ancillary Documents will not, (i) violate, conflict with, or result in any breach of any provision
of either Company’s organizational documents or (ii) subject to obtaining the Consents or making
the registrations, declarations or filings set forth in the next sentence, violate in any material
respect any applicable Law or material contract binding upon either Company. No Consent of any
Governmental Entity or any other person is required for either Company in connection with the
performance of this Agreement and the Seller Ancillary Documents or the consummation of the
transactions contemplated hereby or thereby.

     4.5 Absence of Litigation. There is no Action pending or, to the knowledge of Sellers,
threatened against (i) either Company or the Assets or (ii) Sellers or any of their Affiliates
relating to the transactions contemplated by this Agreement or the Ancillary Documents or which, if
adversely determined, would reasonably be expected to materially impair the ability of Sellers to
perform their obligations and agreements under this Agreement or the Seller Ancillary Documents and
to consummate the transactions contemplated hereby and thereby.

     4.6 Title to LLC Interests; Capitalization.

          (a) Frontier Cheyenne is the record owner of and has good and valid title to the Cheyenne LLC
Interests, free and clear of all Encumbrances, and sole and unrestricted voting power and power of
disposition with respect to all of the Cheyenne LLC Interests. Frontier El Dorado is the record
owner of and has good and valid title to the El Dorado LLC Interests, free and clear of all
Encumbrances, and sole and unrestricted voting power and power of disposition with respect to all
of the El Dorado LLC Interests. Except for any claims arising under this Agreement and any other
agreement entered into by Sellers in connection with this Agreement, Sellers and their Affiliates
have no claims of any kind against either Company, or any of their officers, managers, directors or
employees. The LLC Interests have been duly authorized and validly issued in accordance with
applicable Laws and the limited liability company agreement of the applicable Company and are fully
paid (to the extent required by the limited liability

12

 

company agreement of the applicable Company) and nonassessable (except to the extent such
nonassessability may be affected by Sections 18-607 and 18-804 of DLLCA).

          (b) There are no options or rights to purchase or acquire, or agreements, arrangements,
commitments or understandings relating to, any of the LLC Interests or the Assets except pursuant
to this Agreement and the Omnibus Agreement. There are no (i) authorized or outstanding securities
of or equity interests in the Company of any kind other than the LLC Interests, (ii) there are no
outstanding options, warrants, subscriptions, puts, calls or other rights, agreements, arrangements
or commitments (preemptive, contingent or otherwise) obligating Sellers or either Company to offer,
issue, sell, redeem, repurchase, otherwise acquire or transfer, pledge or encumber any securities
of or equity interest in such Company; and (iii) there are no outstanding securities or obligations
of any kind of any of either Company that are convertible into or exercisable or exchangeable for
any equity interest in such Company.

          (c) Upon payment of the Purchase Price, Buyer will have the entire record and beneficial
ownership of the LLC Interests, free and clear of all Encumbrances.

     4.7 No Undisclosed Liabilities. Neither Company has any indebtedness or liability (whether
absolute, accrued, contingent or otherwise) of any nature.

     4.8 No Employees. Neither Company now has nor have they ever had any employees.

     4.9 Taxes. Each Company has filed, on or before the applicable due date (including any
extensions thereof), all material tax returns that it was required to file, and all such tax
returns were accurate, correct, and complete in all material respects. All taxes due and owing by
each Company have been paid in full or are being properly contested. Each Company is, and at all
time since its formation has been, disregarded as an entity separate from Sellers for U.S. federal
income tax purposes, and no election has been filed on or before the Closing Date that would change
such classification on or after the Closing Date.

     4.10 Brokers and Finders. No investment banker, broker, finder, financial advisor or other
intermediary has been retained by or is authorized to act on behalf of either Seller who is
entitled to receive from Buyer any fee or commission in connection with the transactions
contemplated by this Agreement.

     4.11 Condition of Assets. To Sellers’ knowledge, the Assets are in good operating condition
and repair (normal wear and tear excepted), are free from material defects (patent and latent), are
suitable for the purposes for which they are currently used and are not in need of material
maintenance or repairs except for ordinary routine maintenance and repairs.

     4.12 Title to Assets. Except as disclosed in Seller Disclosure Schedule 4.12, each
Company owns, leases or has the legal right to use all the properties and assets used by the
Company in the operation of its business, in each case subject to no Encumbrances, except Permitted
Encumbrances. All of Cheyenne Logistics’ assets consist of the Cheyenne Assets, and all of El
Dorado’s assets consist of the El Dorado Assets. Except as disclosed in Seller Disclosure
Schedule 4.12, Cheyenne Logistics owns the Cheyenne Assets free and clear of all Encumbrances
other than Permitted Encumbrances, and El Dorado owns the El Dorado Assets free and clear of all
Encumbrances other than Permitted Encumbrances.

13

 

     4.13 Permits. Except as set forth in Seller Disclosure Schedule 4.13, each Company
owns or holds all franchises, licenses, permits, consents, approvals and authorizations of any
Governmental Entity necessary for the ownership and operation of the Assets (collectively, the
“Permits”). Each Permit is in full force and effect, and each Company is in compliance
with all of its obligations with respect thereto. To the knowledge of Sellers, no event has
occurred that causes, or upon the giving of notice or the lapse of time or otherwise would cause,
revocation or termination of any Permit. All Permits shall be, subject to Permitted Encumbrances,
owned or held by the applicable Company at Closing.

     4.14 Banking Relationships. Seller Disclosure Schedule 4.14 sets forth a complete and
accurate list of all accounts, including checking accounts, cash contribution accounts, safe
deposit boxes, borrowing arrangements and certificates of deposit that each Company has with any
banks, savings and loan associations or other financial institutions, indicating in each case
account numbers, if applicable, and the person or persons authorized to act or sign on behalf of
each Company in respect of the foregoing. No person holds any power of attorney or similar
authority from either Company with respect to such accounts.

     4.15 Representations Relating to the Unit Consideration. Each applicable Seller is acquiring
its portion of the Unit Consideration for its own account for investment, and not with a view to
any distribution or resale thereof in violation of the Securities Act of 1933, as amended, or any
other applicable domestic or foreign securities Law. Sellers understand that the Unit
Consideration has not been registered under the Securities Act of 1933, as amended (including the
rules and regulations promulgated thereunder, the “Securities Act”), by reason of a 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 Sellers’ representations
as expressed herein. Sellers understand that the securities represented by the Unit Consideration
are “restricted securities” under applicable U.S. federal and state securities laws and that,
pursuant to these laws, Sellers must hold such securities 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.

     4.16 Legends. Sellers understand that the certificates or other instruments representing the
Unit Consideration shall bear any legend as required by the “blue sky” laws of any state and a
restrictive legend in substantially the following form:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE
“SECURITIES ACT”) AND MAY NOT BE OFFERED OR SOLD, UNLESS IT HAS BEEN REGISTERED
UNDER THE SECURITIES ACT OR UNLESS AN EXEMPTION FROM REGISTRATION IS AVAILABLE (AND,
IN SUCH CASE, AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE PARTNERSHIP SHALL
HAVE BEEN DELIVERED TO THE PARTNERSHIP TO THE EFFECT THAT SUCH OFFER OR SALE IS NOT
REQUIRED TO BE REGISTERED UNDER THE SECURITIES ACT). THIS SECURITY IS SUBJECT TO
CERTAIN RESTRICTIONS ON TRANSFER SET FORTH IN THE FIRST AMENDED AND RESTATED
AGREEMENT OF LIMITED PARTNERSHIP OF THE PARTNERSHIP DATED AS OF JULY 13, 2004, AS
AMENDED, A COPY

14

 

OF WHICH MAY BE OBTAINED FROM THE PARTNERSHIP AT ITS PRINCIPAL EXECUTIVE OFFICES.

     4.17 WAIVERS AND DISCLAIMERS. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS
AGREEMENT, EXCEPT FOR THE EXPRESS REPRESENTATIONS AND WARRANTIES AND OTHER COVENANTS AND AGREEMENTS
MADE BY THE PARTIES IN THIS AGREEMENT, THE ANCILLARY DOCUMENTS AND THE OMNIBUS AGREEMENT, THE
PARTIES HERETO ACKNOWLEDGE AND AGREE THAT NONE OF THE PARTIES HAS MADE, DOES NOT MAKE, AND EACH
SUCH PARTY SPECIFICALLY NEGATES AND DISCLAIMS, ANY REPRESENTATIONS, WARRANTIES, PROMISES,
COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS, IMPLIED
OR STATUTORY, ORAL OR WRITTEN, PAST OR PRESENT, REGARDING (I) THE VALUE, NATURE, QUALITY OR
CONDITION OF THE ASSETS INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL, GEOLOGY OR ENVIRONMENTAL
CONDITION OF THE ASSETS GENERALLY, INCLUDING THE PRESENCE OR LACK OF HAZARDOUS SUBSTANCES OR OTHER
MATTERS ON THE PIPELINE AND RELATED RIGHTS-OF-WAY, (II) THE INCOME TO BE DERIVED FROM THE ASSETS,
(III) THE SUITABILITY OF THE ASSETS FOR ANY AND ALL ACTIVITIES AND USES THAT MAY BE CONDUCTED
THEREON, (IV) THE COMPLIANCE OF OR BY THE ASSETS OR ITS OPERATION WITH ANY LAWS (INCLUDING WITHOUT
LIMITATION ANY ZONING, ENVIRONMENTAL PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS,
ORDERS OR REQUIREMENTS), OR (V) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR
FITNESS FOR A PARTICULAR PURPOSE OF THE ASSETS. EXCEPT TO THE EXTENT PROVIDED IN THIS AGREEMENT,
THE ANCILLARY DOCUMENTS OR THE OMNIBUS AGREEMENT, NONE OF THE PARTIES IS LIABLE OR BOUND IN ANY
MANNER BY ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE LLC
INTERESTS, THE COMPANIES OR THE ASSETS FURNISHED BY ANY AGENT, EMPLOYEE, SERVANT OR THIRD PARTY.
EXCEPT TO THE EXTENT PROVIDED IN THIS AGREEMENT, THE ANCILLARY DOCUMENTS OR THE OMNIBUS AGREEMENT,
EACH OF THE PARTIES HERETO ACKNOWLEDGES THAT TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE TRANSFER
AND CONVEYANCE OF THE COMPANIES AND THEIR ASSETS SHALL BE MADE IN AN “AS IS,” “WHERE IS” CONDITION
WITH ALL FAULTS, AND THE COMPANIES AND THEIR ASSETS ARE TRANSFERRED AND CONVEYED SUBJECT TO ALL OF
THE MATTERS CONTAINED IN THIS SECTION. THIS SECTION SHALL SURVIVE THE TRANSFER AND CONVEYANCE OF
THE LLC INTERESTS OR THE TERMINATION OF THIS AGREEMENT. THE PROVISIONS OF THIS SECTION HAVE BEEN
NEGOTIATED BY THE PARTIES AFTER DUE CONSIDERATION AND ARE INTENDED TO BE A COMPLETE EXCLUSION AND
NEGATION OF ANY REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, WITH RESPECT
TO THE LLC INTERESTS, THE COMPANIES OR THE ASSETS THAT MAY ARISE PURSUANT TO ANY LAW NOW OR
HEREAFTER IN EFFECT, OR OTHERWISE, EXCEPT AS SET FORTH IN THIS AGREEMENT, THE ANCILLARY DOCUMENTS
OR THE OMNIBUS AGREEMENT.

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ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE BUYER

     Buyer hereby represents and warrants to HollyFrontier and Sellers that as of the date of this
Agreement:

     5.1 Organization. Buyer is an entity duly organized, validly existing and in good standing
under the Laws of its state of organization.

     5.2 Authorization. Buyer has full partnership power and authority to execute, deliver, and
perform this Agreement and any Buyer Ancillary Documents to which it is a party. The execution,
delivery, and performance by Buyer of this Agreement and the Buyer Ancillary Documents and the
consummation by Buyer of the transactions contemplated hereby and thereby, have been duly
authorized by all necessary partnership action of Buyer. This Agreement has been duly executed and
delivered by Buyer and constitutes, and each such Buyer Ancillary Document executed or to be
executed Buyer has been, or when executed will be, duly executed and delivered by Buyer and
constitutes, or when executed and delivered will constitute, a valid and legally binding obligation
of Buyer, enforceable against it in accordance with their terms, except to the extent that such
enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance or other similar Laws affecting creditors’ rights and remedies generally and
(ii) equitable principles which may limit the availability of certain equitable remedies (such as
specific performance) in certain instances.

     5.3 No Conflicts or Violations; No Consents or Approvals Required. The execution, delivery
and performance by Buyer of this Agreement and the Buyer Ancillary Documents to which it is a party
does not, and consummation of the transactions contemplated hereby and thereby will not, (i)
violate, conflict with, or result in any breach of any provisions of Buyer’s organizational
documents or (ii) subject to obtaining the Consents or making the registrations, declarations or
filings set forth in the next sentence, violate any applicable Law or material contract binding
upon Buyer. No Consent of any Governmental Entity or any other person is required for Buyer in
connection with the execution, delivery and performance of this Agreement and the other Buyer
Ancillary Documents to which Buyer is a party or the consummation of the transactions contemplated
hereby and thereby.

     5.4 Absence of Litigation. There is no Action pending or, to the knowledge of Buyer,
threatened against Buyer or any of its Affiliates relating to the transactions contemplated by this
Agreement or the Ancillary Documents or which, if adversely determined, would reasonably be
expected to materially impair the ability of Buyer to perform its obligations and agreements under
this Agreement or the Buyer Ancillary Documents and to consummate the transactions contemplated
hereby and thereby.

     5.5 Brokers and Finders. No investment banker, broker, finder, financial advisor or other
intermediary has been retained by or is authorized to act on behalf of Buyer who is entitled to
receive from Sellers any fee or commission in connection with the transactions contemplated by this
Agreement.

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ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF HOLLYFRONTIER

     HollyFrontier hereby represents and warrants to Buyer, the Partnership and Sellers that as of
the date of this Agreement:

     6.1 Organization. HollyFrontier is an entity duly organized, validly existing and in good
standing under the Laws of its state of organization.

     6.2 Authorization. HollyFrontier has full corporate power and authority to execute, deliver,
and perform this Agreement and any Ancillary Documents to which it is a party. The execution,
delivery, and performance by HollyFrontier of this Agreement and the Ancillary Documents and the
consummation by HollyFrontier of the transactions contemplated hereby and thereby, have been duly
authorized by all necessary corporate action of HollyFrontier. This Agreement has been duly
executed and delivered by HollyFrontier and constitutes, and each such Ancillary Document executed
or to be executed by HollyFrontier has been, or when executed will be, duly executed and delivered
by HollyFrontier and constitutes, or when executed and delivered will constitute, a valid and
legally binding obligation of HollyFrontier, enforceable against it in accordance with their terms,
except to the extent that such enforceability may be limited by (i) applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance or other similar Laws affecting
creditors’ rights and remedies generally and (ii) equitable principles which may limit the
availability of certain equitable remedies (such as specific performance) in certain instances.

     6.3 No Conflicts or Violations; No Consents or Approvals Required. The execution, delivery
and performance by HollyFrontier of this Agreement and the Ancillary Documents to which it is a
party does not, and consummation of the transactions contemplated hereby and thereby will not, (i)
violate, conflict with, or result in any breach of any provisions of HollyFrontier’s organizational
documents or (ii) subject to obtaining the Consents or making the registrations, declarations or
filings set forth in the next sentence, violate any applicable Law or material contract binding
upon HollyFrontier. No Consent of any Governmental Entity or any other person is required for
HollyFrontier in connection with the execution, delivery and performance of this Agreement and the
other Ancillary Documents to which HollyFrontier is a party or the consummation of the transactions
contemplated hereby and thereby.

     6.4 Absence of Litigation. There is no Action pending or, to the knowledge of HollyFrontier,
threatened against HollyFrontier or any of its Affiliates relating to the transactions contemplated
by this Agreement or which, if adversely determined, would reasonably be expected to materially
impair the ability of HollyFrontier to perform its obligations and agreements under this Agreement
or the Ancillary Documents to which it is a party and to consummate the transactions contemplated
hereby and thereby.

     6.5 Brokers and Finders. No investment banker, broker, finder, financial advisor or other
intermediary has been retained by or is authorized to act on behalf of HollyFrontier who is
entitled to receive from Buyer any fee or commission in connection with the transactions
contemplated by this Agreement.

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ARTICLE VII

REPRESENTATIONS AND WARRANTIES OF THE PARTNERSHIP

     The Partnership hereby represents and warrants to Buyer, HollyFrontier and Sellers that as of
the date of this Agreement:

     7.1 Organization. The Partnership is an entity duly organized, validly existing and in good
standing under the Laws of Delaware.

     7.2 Authorization. The Partnership has full limited partnership power and authority to
execute, deliver, and perform this Agreement and any Ancillary Documents to which it is a party.
The execution, delivery, and performance by the Partnership of this Agreement and the Ancillary
Documents and the consummation by the Partnership of the transactions contemplated hereby and
thereby, have been duly authorized by all necessary limited partnership action of the Partnership.
This Agreement has been duly executed and delivered by the Partnership and constitutes, and each
such Ancillary Document executed or to be executed by the Partnership has been, or when executed
will be, duly executed and delivered by the Partnership and constitutes, or when executed and
delivered will constitute, a valid and legally binding obligation of the Partnership, enforceable
against it in accordance with their terms, except to the extent that such enforceability may be
limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance
or other similar Laws affecting creditors’ rights and remedies generally and (ii) equitable
principles which may limit the availability of certain equitable remedies (such as specific
performance) in certain instances.

     7.3 No Conflicts or Violations; No Consents or Approvals Required. The execution, delivery
and performance by the Partnership of this Agreement and the Ancillary Documents to which it is a
party does not, and consummation of the transactions contemplated hereby and thereby will not, (i)
violate, conflict with, or result in any breach of any provisions of the Partnership’s
organizational documents or (ii) subject to obtaining the Consents or making the registrations,
declarations or filings set forth in the next sentence, violate any applicable Law or material
contract binding upon the Partnership. No Consent of any Governmental Entity or any other person
is required for the Partnership in connection with the execution, delivery and performance of this
Agreement and the other Ancillary Documents to which the Partnership is a party or the consummation
of the transactions contemplated hereby and thereby.

     7.4 Absence of Litigation. There is no Action pending or, to the knowledge of the
Partnership, threatened against the Partnership or any of its Affiliates relating to the
transactions contemplated by this Agreement or which, if adversely determined, would reasonably be
expected to materially impair the ability of the Partnership to perform its obligations and
agreements under this Agreement or the Ancillary Documents to which it is a party and to consummate
the transactions contemplated hereby and thereby.

     7.5 Brokers and Finders. No investment banker, broker, finder, financial advisor or other
intermediary has been retained by or is authorized to act on behalf of the Partnership who is
entitled to receive from Sellers any fee or commission in connection with the transactions
contemplated by this Agreement.

     7.6 Validity of Aggregate Units. The common units comprising the Unit Consideration and the
limited partner interests represented thereby have been duly and validly

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authorized by the Partnership’s organizational documents and, when issued and delivered in
accordance with the terms of this Agreement, will be validly issued, fully paid (to the extent
required under the Partnership’s organizational documents) and nonassessable (except as such
nonassessability may be affected by Section 17 607 of the Delaware Revised Uniform Limited
Partnership Act).

ARTICLE VIII

COVENANTS

     8.1 Cooperation. Sellers shall cooperate with Buyer and assist Buyer in identifying all
licenses, authorizations, permissions or Permits necessary for the Companies’ operations from and
after the Closing Date and, where permissible, transfer existing Permits to Buyer, or, where not
permissible, assist Buyer in obtaining new Permits at no cost, fee or liability to Sellers.

     8.2 Additional Agreements. Subject to the terms and conditions of this Agreement, the
Ancillary Documents and the Omnibus Agreement, each of the Parties shall use its commercially
reasonable efforts to do, or cause to be taken all action and to do, or cause to be done, all
things necessary, proper, or advisable under applicable Laws to consummate and make effective the
transactions contemplated by this Agreement. If at any time after the Closing Date any further
action is necessary or desirable to carry out the purposes of this Agreement, the Parties and their
duly authorized representatives shall use commercially reasonable efforts to take all such action.

     8.3 Employees. Consistent with past practice between the HollyFrontier Entities and HEP
Entities in similar transactions, at the Closing, employees of HollyFrontier at each Refinery whose
responsibilities relate primarily to the El Dorado Assets or Cheyenne Assets, as applicable, will
report to management of the applicable HEP Entity and will, solely for such purpose and for the
purpose of allocating responsibility and liability for the actions of such employees, be considered
personnel of the applicable HEP Entity, though for all other purposes, such persons shall remain
employees of the applicable HollyFrontier Entity and shall be subject to all collective bargaining
agreements regarding such employees to which the applicable HollyFrontier entity is a party. The
Parties acknowledge that the payroll and benefits for such employees shall be processed and paid by
the appropriate HollyFrontier Entity, and the cost of such payroll and benefits shall be reimbursed
by the appropriate HEP Entity in accordance with the provisions of the Omnibus Agreement.

     8.4 Consent Decree.

          (a) The El Dorado Refinery is subject to a Clean Air Act consent decree (the “El Dorado
Consent Decree”) entered by the U.S. District Court in Kansas. The Parties agree that following
the Closing, El Dorado Logistics will assume responsibility for complying with the terms and
conditions of the El Dorado Consent Decree that apply to the El Dorado Assets. The Parties also
agree to execute and submit to the U.S. District Court in Kansas, a modification of the El Dorado
Consent Decree that makes binding upon El Dorado Logistics all of the terms and conditions of the
El Dorado Consent Decree that are applicable to the El Dorado Assets and that releases Frontier El
Dorado from the post-transfer obligations and liabilities of the El Dorado Consent Decree
applicable to the El Dorado Assets.

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          (b) The Cheyenne Refinery is subject to a Clean Air Act consent decree (the “Cheyenne Consent
Decree”) entered by the U.S. District Court in Wyoming. The Parties agree that following the
Closing, Cheyenne Logistics will assume responsibility for complying with the terms and conditions
of the Cheyenne Consent Decree that apply to the Cheyenne Assets. The Parties also agree to
execute and submit to the U.S. District Court in Wyoming, a modification of the Cheyenne Consent
Decree that makes binding upon Cheyenne Logistics all of the terms and conditions of the Cheyenne
Consent Decree that are applicable to the Cheyenne Assets and that releases Frontier Cheyenne from
the post-transfer obligations and liabilities of the Cheyenne Consent Decree applicable to the
Cheyenne Assets.

ARTICLE IX

ADDITIONAL AGREEMENTS

     9.1 Further Assurances. After the Closing, each Party shall take such further actions,
including obtaining consents to assignment from third parties, and execute such further documents
as may be necessary or reasonably requested by the other Parties in order to effectuate the intent
of this Agreement and the Ancillary Documents and to provide such other Parties with the intended
benefits of this Agreement and the Ancillary Documents.

     9.2 Tanks Under Construction. Tank 108 at the Cheyenne Refinery and Tanks 640 and 641
at the El Dorado Refinery (the “Under Construction Tanks”) are under construction and, as
of the date of this Agreement, such construction is incomplete. The Under Construction Tanks are
owned by a Seller and have not been transferred to either Cheyenne Logistics or El Dorado Logistics
prior to or contemporaneously with the Closing. Following the Closing, each Seller agrees that it
shall complete the construction of the Under Construction Tanks that are located at the Refinery it
owns in an expeditious and diligent manner and at the applicable Seller’s sole cost and expense.
Upon completion of the construction of each Under Construction Tank, the Seller that owns such tank
shall convey title to it to either Cheyenne Logistics (for Tank 108) or El Dorado Logistics (for
Tanks 640 and 641). Prior to the conveyance of a tank as described in the prior sentence, risk of
loss for the Under Construction Tanks shall remain with the Seller that owns such tank, and any
loss, destruction or damage to the tank shall not relieve such Seller of the obligation to
diligently construct and convey such tank as described herein. Notwithstanding the foregoing, no
Seller shall be entitled to any consideration for conveyance of the Under Construction Tanks other
than the consideration received under Section 2.2 of this Agreement, and conveyance of the Under
Construction Tanks shall not affect Sellers’ obligations under the Throughput Agreements.
Following the conveyance of the Under Construction Tanks, the term “Cheyenne Assets” shall
be deemed to include Tank 108 and the term “El Dorado Assets” shall be deemed to include
Tanks 640 and 641, for all purposes, including (i) breaches of representations and warranties
hereunder and any indemnification to which a Buyer is entitled as a result thereof, and (ii) any
Ancillary Documents containing provisions or defined terms that refer to or derive their meaning
from the definition of “Assets,” “Cheyenne Assets” or “El Dorado Assets” under this Agreement.

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ARTICLE X

INDEMNIFICATION

     10.1 Indemnification of Buyer and Sellers. From and after the Closing and subject to the
provisions of this Article X, (i) each Seller agrees to indemnify and hold harmless the
Buyer Indemnified Parties from and against any and all Buyer Indemnified Costs and (ii) Buyer and
the Partnership agree to indemnify and hold harmless the Seller Indemnified Parties from and
against any and all Seller Indemnified Costs; provided, however, that the Buyer Indemnified Parties
may only seek indemnification under this Article X (x) with respect to Claims related to
Cheyenne Logistics or the Cheyenne Assets, from Frontier Cheyenne (and HollyFrontier pursuant to
Article XII), and (y) with respect to Claims related to El Dorado Logistics or the El
Dorado Assets, from Frontier El Dorado (and HollyFrontier pursuant to Article XII).

     10.2 Defense of Third-Party Claims. An Indemnified Party shall give prompt written notice to
Sellers or Buyer, as applicable (the “Indemnifying Party”), of the commencement or
assertion of any action, proceeding, demand, or claim by a third party (collectively, a
“third-party action”) in respect of which such Indemnified Party seeks indemnification
hereunder. Any failure so to notify the Indemnifying Party shall not relieve the Indemnifying
Party from any liability that it, he, or she may have to such Indemnified Party under this
Article X unless the failure to give such notice materially and adversely prejudices the
Indemnifying Party. The Indemnifying Party shall have the right to assume control of the defense
of, settle, or otherwise dispose of such third-party action on such terms as it deems appropriate;
provided, however, that:

          (a) The Indemnified Party shall be entitled, at its own expense, to participate in the defense
of such third-party action (provided, however, that the Indemnifying Party shall
pay the attorneys’ fees of the Indemnified Party if (i) the employment of separate counsel shall
have been authorized in writing by any the Indemnifying Party in connection with the defense of
such third-party action, (ii) the Indemnifying Party shall not have employed counsel reasonably
satisfactory to the Indemnified Party to have charge of such third-party action, (iii) the
Indemnified Party shall have reasonably concluded that there may be defenses available to such
Indemnified Party that are different from or additional to those available to the Indemnifying
Party, or (iv) the Indemnified Party’s counsel shall have advised the Indemnified Party in writing,
with a copy delivered to the Indemnifying Party, that there is a material conflict of interest that
could violate applicable standards of professional conduct to have common counsel);

          (b) The Indemnifying Party shall obtain the prior written approval of the Indemnified Party
before entering into or making any settlement, compromise, admission, or acknowledgment of the
validity of such third-party action or any liability in respect thereof if, pursuant to or as a
result of such settlement, compromise, admission, or acknowledgment, injunctive or other equitable
relief would be imposed against the Indemnified Party or if, in the opinion of the Indemnified
Party, such settlement, compromise, admission, or acknowledgment could have a material adverse
effect on its business;

          (c) The Indemnifying Party shall not consent to the entry of any judgment or enter into any
settlement that does not include as an unconditional term thereof the giving by each claimant or
plaintiff to each Indemnified Party of a release from all liability in respect of such third-party
action; and

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          (d) The Indemnifying Party shall not be entitled to control (but shall be entitled to
participate at its own expense in the defense of), and the Indemnified Party shall be entitled to
have sole control over, the defense or settlement, compromise, admission, or acknowledgment of any
third-party action (i) as to which the Indemnifying Party fails to assume the defense within a
reasonable length of time or (ii) to the extent the third-party action seeks an order, injunction,
or other equitable relief against the Indemnified Party which, if successful, would materially
adversely affect the business, operations, assets, or financial condition of the Indemnified Party;
provided, however, that the Indemnified Party shall make no settlement, compromise,
admission, or acknowledgment that would give rise to liability on the part of any Indemnifying
Party without the prior written consent of such Indemnifying Party.

The parties hereto shall extend reasonable cooperation in connection with the defense of any
third-party action pursuant to this Article X and, in connection therewith, shall furnish
such records, information, and testimony and attend such conferences, discovery proceedings,
hearings, trials, and appeals as may be reasonably requested.

     10.3 Direct Claims. In any case in which an Indemnified Party seeks indemnification hereunder
which is not subject to Section 10.2 because no third-party action is involved, the
Indemnified Party shall notify the Indemnifying Party in writing of any Indemnified Costs which
such Indemnified Party claims are subject to indemnification under the terms hereof. Subject to
the limitations set forth in Section 10.4(a), the failure of the Indemnified Party to
exercise promptness in such notification shall not amount to a waiver of such claim unless the
resulting delay materially prejudices the position of the Indemnifying Party with respect to such
claim.

     10.4 Limitations. The following provisions of this Section 10.4 shall limit the
indemnification obligations hereunder:

          (a) Limitation as to Time. The Indemnifying Party shall not be liable for any
Indemnified Costs pursuant to this Article X unless a written claim for indemnification in
accordance with Section 10.2 or Section 10.3 is given by the Indemnified Party to
the Indemnifying Party with respect thereto on or before 5:00 p.m., Dallas, Texas time, on the
anniversary of the Closing Date; provided that the Indemnifying Party shall be liable for
Indemnified Costs with respect to claims for indemnification for breach of the representations and
warranties contained in Sections 4.1 (Organization), 4.2 (Authorization),
4.6 (Title to LLC Interests; Capitalization), 4.9 (Taxes), 4.17 (Waivers
and Disclaimers), 5.1 (Organization), 5.2 (Authorization), 6.1
(Organization), 6.2 (Authorization), 7.1 (Organization), 7.2
(Authorization) and 7.6 (Validity of Aggregate Units) if a written claim for
indemnification in accordance with Section 10.2 or Section 10.3 is given by the
Indemnified Party to the Indemnifying Party at any time prior to the expiration of the applicable
statute of limitations.

          (b) Sole and Exclusive Remedy. Each Party acknowledges and agrees that, after the
Closing Date, notwithstanding any other provision of this Agreement to the contrary, Buyer’s and
the other Buyer Indemnified Parties’ and Sellers’ and the other Seller Indemnified Parties’ sole
and exclusive remedy with respect to the Indemnified Costs shall be in accordance with, and limited
by, the provisions set forth in this Article X. The Parties further acknowledge and agree
that the foregoing is not the remedy for and does not limit the Parties’ remedies for matters
covered by the indemnification provisions contained in the Omnibus Agreement.

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     10.5 Tax Related Adjustments. Sellers and Buyer agree that any payment of Indemnified Costs
made hereunder will be treated by the parties on their tax returns as an adjustment to the Purchase
Price.

ARTICLE XI

MISCELLANEOUS

     11.1 Expenses. Except as provided in Section 3.4 of this Agreement, or as provided in
the Ancillary Documents or the Omnibus Agreement, all costs and expenses incurred by the Parties in
connection with the consummation of the transactions contemplated hereby shall be borne solely and
entirely by the Party which has incurred such expense.

     11.2 Notices.

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

Notices to HollyFrontier:

HollyFrontier Corporation

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attention: President

Email address: president@hollyfrontier.com

Notices to Sellers:

Frontier Refining LLC

2828 N. Harwood, Suite 1300

Dallas, Texas 75201-6927

Attention: President

Email address: president@hollyfrontier.com

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

proper notice, to:

Frontier El Dorado Refining LLC

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attention: General Counsel

Email address: generalcounsel@hollyfrontier.com

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Notices to Buyer:

Holly Energy Partners — Operating, L.P.

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attention: President

Email address: president@hollyenergy.com

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

proper notice, to:

Holly Energy Partners, L.P.

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attention: General Counsel

Email address: generalcounsel@hollyenergy.com

               (b) Any Party may at any time change its address for service from time to time by giving
notice to the other Parties in accordance with this Section 11.2.

     11.3 Severability. If any term or other provision of this Agreement is invalid, illegal, or
incapable of being enforced under applicable Law, or public policy, all other conditions and
provisions of this Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated herein are not affected in any manner
adverse to any Party. Upon such determination that any term or other provision of this Agreement
is invalid, illegal, or incapable of being enforced, the Parties shall negotiate in good faith to
modify this Agreement so as to effect the original intent of the Parties as closely as possible in
a mutually acceptable manner in order that the transactions contemplated herein are consummated as
originally contemplated to the fullest extent possible.

     11.4 Governing Law; Waiver of Jury Trial. This Agreement shall be subject to and governed by
the laws of the State of Delaware, excluding any conflicts-of-law rule or principle that might
refer the construction or interpretation of this Agreement to the laws of another state. Each
Party hereby submits to the jurisdiction of the state and federal courts in the State of Texas and
to venue in Dallas, Texas. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

     11.5 Arbitration Provision. Any and all Arbitrable Disputes must be resolved through the use
of binding arbitration using three arbitrators, in accordance with the Commercial Arbitration Rules
of the American Arbitration Association, as supplemented to the extent necessary to determine any
procedural appeal questions by the Federal Arbitration Act (Title 9 of the United States Code). If
there is any inconsistency between this Section 11.5 and the Commercial Arbitration Rules
or the Federal Arbitration Act, the terms of this Section 11.5 will control the rights and
obligations of the Parties. Arbitration must be initiated within the time limits set forth in this
Agreement, or if no such limits apply, then within a reasonable time or the time period allowed by
the applicable statute of limitations. Arbitration may be initiated by a Party (“Claimant”)
serving written notice on the other Party (“Respondent”) that the Claimant

24

 

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

     11.6 Parties in Interest. This Agreement shall be binding upon and inure solely to the
benefit of each Party hereto and their successors and permitted assigns, and nothing in this
Agreement, express or implied, is intended to confer upon any other person any rights or remedies
of any nature whatsoever under or by reason of this Agreement.

     11.7 Assignment of Agreement. At any time, the Parties may make a collateral assignment of
their rights under this Agreement to any of their bona fide lenders or debt holders, or a trustee
or a representative for any of them, and the non-assigning Parties shall execute an acknowledgment
of such collateral assignment in such form as may from time to time be reasonably requested;
provided, however, that unless written notice is given to the non-assigning Parties that any such
collateral assignment has been foreclosed upon, such non-assigning Parties shall be entitled to
deal exclusively with HollyFrontier, the Partnership Buyer or Sellers, as the case may be, as to
any matters arising under this Agreement, the Ancillary Documents or the Omnibus Agreement (other
than for delivery of notices required by any such collateral assignment). Except as otherwise
provided in this Section 11.7, neither this Agreement nor any of the rights, interests, or
obligations hereunder may be assigned by any Party without the prior written consent of the other
Parties hereto.

     11.8 Captions. The captions in this Agreement are for purposes of reference only and shall
not limit or otherwise affect the interpretation hereof.

     11.9 Counterparts. This Agreement may be executed 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.

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     11.10 Director and Officer Liability. The directors, managers, officers, partners and
stockholders of HollyFrontier, Buyer, Sellers and their respective Affiliates shall not have any
personal liability or obligation arising under this Agreement (including any claims that another
party may assert) other than as an assignee of this Agreement or pursuant to a written guarantee.

     11.11 Integration. This Agreement, the Ancillary Documents and the Omnibus Agreement
supersede any previous understandings or agreements among the Parties, whether oral or written,
with respect to their subject matter. This Agreement, the Ancillary Documents and the Omnibus
Agreement contain the entire understanding of the Parties with respect to the subject matter hereof
and thereof. No understanding, representation, promise or agreement, whether oral or written, is
intended to be or shall be included in or form part of this Agreement, the Ancillary Documents or
the Omnibus Agreement unless it is contained in a written amendment hereto or thereto and executed
by the Parties hereto or thereto after the date of this Agreement, the Ancillary Documents or the
Omnibus Agreement.

     11.12 Effect of Agreement. The Parties ratify and confirm that except as otherwise expressly
provided herein, in the event this Agreement conflicts in any way with the Omnibus Agreement, the
terms and provisions of the Omnibus Agreement shall control.

     11.13 Amendment; Waiver. This Agreement may be amended only in a writing signed by all
parties hereto. Any waiver of rights hereunder must be set forth in writing. A waiver of any
breach or failure to enforce any of the terms or conditions of this Agreement shall not in any way
affect, limit or waive any party’s rights at any time to enforce strict compliance thereafter with
every term or condition of this Agreement.

     11.14 Survival of Representations and Warranties. The representations and warranties set
forth in this Agreement shall survive the Closing until 5:00 p.m., Dallas, Texas time on, on the
anniversary of the Closing Date, except that the representations and warranties contained in
Sections 4.1 (Organization), 4.2 (Authorization), 4.6 (Title to LLC
Interests; Capitalization), 4.9 (Taxes), 4.17 (Waivers and Disclaimers),
5.1 (Organization), 5.2 (Authorization), 6.1 (Organization), 6.2
(Authorization) 7.1 (Organization), 7.2 (Authorization) and 7.6 (Validity
of Aggregate Units) shall survive until the expiration of the applicable statute of limitations;
provided, however, that any representation and warranty that is the subject of a claim for
indemnification hereunder which claim was timely made pursuant to Section 10.4(a) shall
survive with respect to such claim until such claim is finally paid or adjudicated.

ARTICLE XII

GUARANTEE

     12.1 Payment and Performance Guaranty. HollyFrontier unconditionally, absolutely, continually
and irrevocably guarantees, as principal and not as surety, to Buyer and the Partnership the
punctual and complete payment in full when due of all Buyer Indemnified Costs by the Indemnifying
Party under the Agreement (collectively, the “Payment Obligations”). HollyFrontier agrees that
Buyer and the Partnership shall be entitled to enforce directly against HollyFrontier any of the
Payment Obligations.

     12.2 Guaranty Absolute. HollyFrontier hereby guarantees that the Payment Obligations will be
paid strictly in accordance with the terms of the Agreement. The obligations of HollyFrontier
under this Agreement constitute a present and continuing guaranty of payment,

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and not of collection or collectability. The liability of HollyFrontier under this Agreement
shall be absolute, unconditional, present, continuing and irrevocable irrespective of:

          (a) any assignment or other transfer of the Agreement or any of the rights thereunder of Buyer
and the Partnership;

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

          (c) any acceptance by Buyer and the Partnership of partial payment or performance from the
Indemnifying Party;

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

          (e) any absence of any notice to, or knowledge of, HollyFrontier, of the existence or
occurrence of any of the matters or events set forth in the foregoing subsections (a) through (d);
or

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

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

     12.3 Waiver. HollyFrontier hereby waives promptness, diligence, all setoffs, presentments,
protests and notice of acceptance and any other notice relating to any of the Payment Obligations
and any requirement for Buyer to protect, secure, perfect or insure any security interest or lien
or any property subject thereto or exhaust any right or take any action against the Indemnifying
Party, any other entity or any collateral.

     12.4 Subrogation Waiver. HollyFrontier agrees that it shall not have any rights (direct or
indirect) of subrogation, contribution, reimbursement, indemnification or other rights of payment
or recovery from the Indemnifying Party for any payments made by HollyFrontier under this
Article XII until all Payment Obligations have been indefeasibly paid, and HollyFrontier
hereby irrevocably waives and releases, absolutely and unconditionally, any such rights of
subrogation, contribution, reimbursement, indemnification and other rights of payment or recovery
it may now have or hereafter acquire against the Indemnifying Party until all Payment Obligations
have been indefeasibly paid.

     12.5 Reinstatement. The obligations of HollyFrontier under this Article XII shall
continue to be effective or shall be reinstated, as the case may be, if at any time any payment of
any of the Payment Obligations is rescinded or must otherwise be returned to the Indemnifying Party
or any other entity, upon the insolvency, bankruptcy, arrangement, adjustment,

27

 

composition, liquidation or reorganization of the Indemnifying Party or such other entity, or
for any other reason, all as though such payment had not been made.

     12.6 Continuing Guaranty. This Article XII is a continuing guaranty and shall (i)
remain in full force and effect until the first to occur of the indefeasible payment in full of all
of the Payment Obligations, (ii) be binding upon HollyFrontier, its successors and assigns and
(iii) inure to the benefit of and be enforceable by Buyer and its successors, transferees and
assigns.

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

ARTICLE XIII

INTERPRETATION

     13.1 Interpretation. It is expressly agreed that this Agreement shall not be construed
against any Party, and no consideration shall be given or presumption made, on the basis of who
drafted this Agreement or any particular provision hereof or who supplied the form of Agreement.
Each Party agrees that this Agreement has been purposefully drawn and correctly reflects its
understanding of the transaction that this Agreement contemplates. In construing this Agreement:

          (a) examples shall not be construed to limit, expressly or by implication, the matter they
illustrate;

          (b) the word “includes” and its derivatives means “includes, but is not limited to” and
corresponding derivative expressions;

          (c) a defined term has its defined meaning throughout this Agreement and each Exhibit, Annex
or Schedule to this Agreement, regardless of whether it appears before or after the place where it
is defined;

          (d) each Exhibit, Annex and Schedule to this Agreement is a part of this Agreement, but if
there is any conflict or inconsistency between the main body of this Agreement and any Exhibit,
Annex or Schedule, the provisions of the main body of this Agreement shall prevail;

          (e) the term “cost” includes expense and the term “expense” includes cost;

          (f) the headings and titles herein are for convenience only and shall have no significance in
the interpretation hereof;

28

 

          (g) the inclusion of a matter on a Schedule in relation to a representation or warranty shall
not be deemed an indication that such matter necessarily would, or may, breach such representation
or warranty absent its inclusion on such Schedule;

          (h) any reference to a statute, regulation or Law shall include any amendment thereof or any
successor thereto and any rules and regulations promulgated thereunder;

          (i) currency amounts referenced herein, unless otherwise specified, are in U.S. Dollars;

          (j) unless the context otherwise requires, all references to time shall mean time in Dallas,
Texas;

          (k) whenever this Agreement refers to a number of days, such number shall refer to calendar
days unless business days are specified; and

          (l) if a term is defined as one part of speech (such as a noun), it shall have a corresponding
meaning when used as another part of speech (such as a verb).

     13.2 References, Gender, Number. All references in this Agreement to an “Article,” “Section,”
“subsection,” “Exhibit” or “Schedule” shall be to an Article, Section, subsection, Exhibit or
Schedule of this Agreement, unless the context requires otherwise. Unless the context clearly
requires otherwise, the words “this Agreement,” “hereof,” “hereunder,” “herein,” “hereby,” or words
of similar import shall refer to this Agreement as a whole and not to a particular Article,
Section, subsection, clause or other subdivision hereof. Cross references in this Agreement to a
subsection or a clause within a Section may be made by reference to the number or other subdivision
reference of such subsection or clause preceded by the word “Section.” Whenever the context
requires, the words used herein shall include the masculine, feminine and neuter gender, and the
singular and the plural.

[The Remainder of this Page is Intentionally Left Blank]

29

 

     IN WITNESS WHEREOF, the parties have executed this Agreement to be effective as of the
Effective Time.

	 	 	 	 	 
	 	HOLLYFRONTIER:

HOLLYFRONTIER CORPORATION

 	 
	 	By:  	/s/ Douglas S. Aron
 	 
	 	Name:  	 	Douglas S. Aron 	 
	 	Title:  	 	Executive Vice President
and Chief Financial Officer
 	 
	 	SELLERS:

FRONTIER REFINING LLC

 	 
	 	By:  	/s/ James M. Stump
 	 
	 	Name:  	 	James M. Stump 	 
	 	Title:  	 	Senior Vice President, Refinery Operations 	 
	 
	 	FRONTIER EL DORADO REFINING LLC

 	 
	 	By:  	          /s/ James M. Stump
 	 
	 	Name:  	 	James M. Stump 	 
	 	Title:  	 	Senior Vice President, Refinery Operations 	 
	 
	 	BUYER:

HOLLY ENERGY PARTNERS — OPERATING, L.P.

By:        HEP Logistics GP, L.L.C.

              Its General Partner

 	 

	 	 	 	 	 
	 	By:  	/s/ Mark T. Cunningham
 	 
	 	Name:  	 	Mark T. Cunningham 	 
	 	Title:  	 	Vice President, Operations 	 
	 

[Signature Page to LLC Interest Purchase Agreement]

 

 

	 	 	 	 	 
	 	PARTNERSHIP:

HOLLY ENERGY PARTNERS, L.P.

By:     HEP Logistics Holdings, L.P.

           Its General Partner

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

                       its General Partner

 	 

	 	 	 	 	 
	 	By:  	/s/ Mark T. Cunningham
 	 
	 	Name:  	 	Mark T. Cunningham 	 
	 	Title:  	 	Vice President, Operations 	 
	 

[Signature Page to LLC Interest Purchase Agreement]

 

 

EXHIBIT A

Form of Cheyenne Throughput Agreement

 

 

EXHIBIT B

Form of El Dorado Throughput Agreement

 

 

EXHIBIT C

Form
of El Dorado Note

 

 

EXHIBIT D

Form of Cheyenne Note

 

 

EXHIBIT E

Form of El Dorado Assignment

 

 

EXECUTION VERSION

ASSIGNMENT OF LIMITED LIABILITY COMPANY INTERESTS (EL DORADO)

     This Assignment of Limited Liability Company Interests (“Assignment”) is dated as of
November 9, 2011 to be effective as of 12:01 a.m., Dallas, Texas time, on November 1, 2011 (the
“Effective Time”), by and between Frontier El Dorado Refining LLC, a Delaware limited
liability company (“Seller”), and Holly Energy Partners — Operating, L.P., a Delaware
limited partnership (“Buyer”). Buyer and Seller are referred to collectively herein as the
“Parties.”

RECITALS

     Reference is made to that certain LLC Interest Purchase Agreement dated as of November 9, 2011
to be effective as of November 1, 2011, among HollyFrontier Corporation, a Delaware corporation,
Frontier Refining LLC, a Delaware limited liability company, Seller, Buyer and Holly Energy
Partners, L.P., a Delaware limited partnership, wherein Seller has agreed to sell and assign to
Buyer all of the membership interests in El Dorado Logistics LLC, a Delaware limited liability
company (the “Company”), in accordance with the terms of such LLC Interest Purchase
Agreement (such agreement, as the same may be amended, the “Purchase Agreement”).
Capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in
the Purchase Agreement.

     This Assignment is delivered by Seller pursuant to the Purchase Agreement.

ASSIGNMENT

     Now, therefore, in consideration of the premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

     1. Subject to the representations, warranties and covenants of the parties contained in the
Purchase Agreement, Seller hereby assigns to Buyer all of the limited liability company interests
in the Company, and any income, distributions, or other value associated therewith or deriving
therefrom (including, without limitation, the Company’s interest in the El Dorado Assets) on and
after the Effective Time (collectively, the “Membership Interests”).

     2. Subject to the representations, warranties and covenants of the parties contained in the
Purchase Agreement, Buyer hereby assumes, from and after the Effective Time, all obligations and
liabilities of Seller with respect to the Membership Interests arising from and after the Effective
Time.

     3. Seller hereby agrees to promptly execute and deliver any corrective assignments and other
legal documents or notification reasonably requested by Buyer to give effect to the intent of this
Assignment.

     4. Seller hereby acknowledges and agrees that, as a result of this Assignment, it no longer
has any limited liability company interest or equity interest in the Company, and it resigns as a
member of the Company effective as of the Effective Time.

1

 

     5. This Assignment shall be binding upon the Parties and their respective successors and
assigns.

     6. This Assignment shall be governed by and construed in accordance with the internal laws of
the State of Delaware.

     7. This Assignment is subject to the terms and conditions of the Purchase Agreement, and
nothing contained herein shall be deemed to supersede, limit, amend, supplement, modify, vary or
enlarge any of the rights, obligations, covenants, agreements, representations and warranties of
the Parties under the Purchase Agreement, this Assignment being intended only to effect the
transfer of the Membership Interests from Seller to Buyer as contemplated in the Purchase
Agreement. In the event of any conflict between the terms of this Assignment and the terms of the
Purchase Agreement, the terms of the Purchase Agreement shall control.

     8. This Assignment may be executed in one or more counterparts, each of which shall be deemed
an original but all of which together will constitute one and the same instrument.

[Remainder of Page Intentionally Left Blank]

2

 

     IN WITNESS WHEREOF, this Assignment is executed to be effective as of the Effective Time.

	 	 	 	 	 
	 	Seller:

FRONTIER EL DORADO REFINING LLC

 	 
	 	By:  	 	 
	 	Name:  	James M. Stump 	 
	 	Title:  	Senior Vice President, Refinery Operations 	 
	 
	 	Buyer:

HOLLY ENERGY PARTNERS — OPERATING, L.P.

 	 
	 	By:  	 	 
	 	Name:  	Mark T. Cunningham 	 
	 	Title:  	Vice President, Operations 	 
	 

[Signature Page to Assignment of Limited Liability Company Interests (El Dorado)]

 

 

EXHIBIT F

Form of Cheyenne Assignment

 

 

EXECUTION VERSION

ASSIGNMENT OF LIMITED LIABILITY COMPANY INTERESTS (CHEYENNE)

     This Assignment of Limited Liability Company Interests (“Assignment”) is dated as of
November 9, 2011 to be effective as of 12:01 a.m., Dallas, Texas time, on November 1, 2011 (the
“Effective Time”), by and between Frontier Refining LLC, a Delaware limited liability
company (“Seller”), and Holly Energy Partners — Operating, L.P., a Delaware limited
partnership (“Buyer”). Buyer and Seller are referred to collectively herein as the
“Parties.”

RECITALS

     Reference is made to that certain LLC Interest Purchase Agreement dated as of November 9, 2011
to be effective as of November 1, 2011, among HollyFrontier Corporation, a Delaware corporation,
Seller, Frontier El Dorado Refining LLC, a Delaware limited liability company, Buyer and Holly
Energy Partners, L.P., a Delaware limited partnership, wherein Seller has agreed to sell and assign
to Buyer all of the membership interests in El Dorado Logistics LLC, a Delaware limited liability
company (the “Company”), in accordance with the terms of such LLC Interest Purchase
Agreement (such agreement, as the same may be amended, the “Purchase Agreement”).
Capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in
the Purchase Agreement.

     This Assignment is delivered by Seller pursuant to the Purchase Agreement.

ASSIGNMENT

     Now, therefore, in consideration of the premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

     1. Subject to the representations, warranties and covenants of the parties contained in the
Purchase Agreement, Seller hereby assigns to Buyer all of the limited liability company interests
in the Company, and any income, distributions, or other value associated therewith or deriving
therefrom (including, without limitation, the Company’s interest in the Cheyenne Assets) on and
after the Effective Time (collectively, the “Membership Interests”).

     2. Subject to the representations, warranties and covenants of the parties contained in the
Purchase Agreement, Buyer hereby assumes, from and after the Effective Time, all obligations and
liabilities of Seller with respect to the Membership Interests arising from and after the Effective
Time.

     3. Seller hereby agrees to promptly execute and deliver any corrective assignments and other
legal documents or notification reasonably requested by Buyer to give effect to the intent of this
Assignment.

     4. Seller hereby acknowledges and agrees that, as a result of this Assignment, it no longer
has any limited liability company interest or equity interest in the Company, and it resigns as a
member of the Company effective as of the Effective Time.

1

 

     5. This Assignment shall be binding upon the Parties and their respective successors and
assigns.

     6. This Assignment shall be governed by and construed in accordance with the internal laws of
the State of Delaware.

     7. This Assignment is subject to the terms and conditions of the Purchase Agreement, and
nothing contained herein shall be deemed to supersede, limit, amend, supplement, modify, vary or
enlarge any of the rights, obligations, covenants, agreements, representations and warranties of
the Parties under the Purchase Agreement, this Assignment being intended only to effect the
transfer of the Membership Interests from Seller to Buyer as contemplated in the Purchase
Agreement. In the event of any conflict between the terms of this Assignment and the terms of the
Purchase Agreement, the terms of the Purchase Agreement shall control.

     8. This Assignment may be executed in one or more counterparts, each of which shall be deemed
an original but all of which together will constitute one and the same instrument.

[Remainder of Page Intentionally Left Blank]

2

 

     IN WITNESS WHEREOF, this Assignment is executed to be effective as of the Effective Time.

	 	 	 	 	 
	 	Seller:

FRONTIER REFINING LLC

 	 
	 	By:  	 	 
	 	Name:  	James M. Stump 	 
	 	Title:  	Senior Vice President, Refinery Operations 	 
	 
	 	Buyer:

HOLLY ENERGY PARTNERS — OPERATING, L.P.

 	 
	 	By:  	 	 
	 	Name:  	Mark T. Cunningham 	 
	 	Title:  	Vice President, Operations 	 
	 

[Signature Page to Assignment of Limited Liability Company Interests (Cheyenne)]

 

 

EXHIBIT G

Form of Cheyenne Site Services Agreement

 

 

EXECUTION VERSION

SITE SERVICES AGREEMENT

(CHEYENNE)

     This Site Services Agreement (this “Agreement”), is entered into as of November 9,
2011 to be effective as of November 1, 2011 by and between FRONTIER REFINING LLC, a limited
liability company organized and existing under the laws of Delaware (“Frontier Cheyenne”),
and CHEYENNE LOGISTICS LLC, a limited liability company organized and existing under the laws of
Delaware (“Cheyenne Logistics”). Frontier Cheyenne and Cheyenne Logistics are hereinafter
collectively referred to as “Parties” and each singularly as a “Party”).

R E C I T A L S:

     WHEREAS, pursuant to the terms of that certain LLC Interest Purchase Agreement, dated
effective as of November 1, 2011 (the “Purchase Agreement”), by and among HollyFrontier
Corporation, a Delaware corporation, Frontier Cheyenne and Frontier El Dorado Refining LLC, a
Delaware limited liability company, as Sellers, Holly Energy Partners — Operating, L.P., a
Delaware limited partnership (the “Operating Partnership”), as Buyer, and Holly Energy
Partners, L.P., a Delaware limited partnership, the Operating Partnership acquired all of the
issued and outstanding limited liability company interests of Cheyenne Logistics, the owner of the
Relevant Assets (as defined in the Lease and Access Agreement);

     WHEREAS, simultaneously herewith, Frontier Cheyenne and Cheyenne Logistics are entering into
that certain Lease and Access Agreement (Cheyenne) dated as of the date hereof (the “Lease and
Access Agreement”) pursuant to which, among other things, Cheyenne Logistics will lease from
Frontier Cheyenne the real property on which the Relevant Assets (as defined in the Lease and
Access Agreement are located within that certain refinery complex owned by Frontier Cheyenne,
commonly known as the Cheyenne Refinery, and located in the City of Cheyenne, Laramie County,
Wyoming (the “Refinery Complex”); and

     WHEREAS, Frontier Cheyenne has agreed to provide to Cheyenne Logistics, and Cheyenne Logistics
has agreed to accept, shared use of certain services, utilities, materials and facilities as more
fully described on Exhibit A (each an “SUMF Item” and collectively the “SUMF
Items”) located at the Refinery Complex that are necessary to operate and maintain the Relevant
Assets as currently operated and maintained.

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

ARTICLE 1

DEFINITIONS AND INTERPRETATIONS

     1.1 Definitions.

     For purposes of this Agreement, the following capitalized terms shall have the meanings
specified herein. Capitalized terms used in this Agreement and not otherwise defined shall have
the meanings for such terms set forth in the Lease and Access Agreement.

 

 

     “Affiliate” has the meaning given such term in the Purchase Agreement.

     “Additional Improvements” shall have the meaning given such term in the Lease and
Access Agreement.

     “Additional SUMF Items” shall have the meaning set forth in Section 3.2(b).

     “Agreement” shall have the meaning set forth in the introductory paragraph.

     “Ancillary Agreements” means, collectively, the Purchase Agreement, the Lease and
Access Agreement, the Throughput Agreement and any other agreement executed by the Parties hereto
in connection with the Operating Partnership’s acquisition of Cheyenne Logistics and Cheyenne
Logistics’ ownership of the Relevant Assets that has not been otherwise amended or superseded.

     “Annual Service Fee” shall have the meaning set forth in Section 4.1.

     “Bankruptcy Event” means, in relation to any Party, (i) the making of a general
assignment for the benefit of creditors by such Party; (ii) the entering into of any arrangement or
composition with creditors as a result of insolvency (other than for the purposes of a solvent
reconstruction or amalgamation); (iii) the institution by such Party of proceedings (a) seeking to
adjudicate such Party as bankrupt or insolvent or seeking protection or relief from creditors, or
(b) seeking liquidation, winding up, or rearrangement, reorganization or adjustment of such Party
or its debts (other than for purposes of a solvent reconstruction or amalgamation), or (c) seeking
the entry of an order for the appointment of a receiver, trustee or other similar official for such
Party or for all or a substantial part of such Party’s assets; or (iv) the institution of any
proceeding of the type described in (iii) above against such Party, which proceeding shall not have
been dismissed within ninety (90) days following its institution.

     “Cheyenne Logistics” shall have the meaning set forth in the introductory paragraph.

     “Connection Facilities” means all physical interconnections and related equipment and
facilities required to deliver the SUMF Items described in Exhibit A to the Relevant Assets
from various locations within the Refinery Complex.

     “Dispute” means any dispute or difference that arises between the Parties in
connection with or arising out of this Agreement (including, any dispute as to the termination or
invalidity of this Agreement or any provision of it).

     “Force Majeure” means acts of God, strikes, lockouts or other industrial disturbances,
acts of the public enemy, wars, blockades, insurrections, riots, storms, floods, washouts, arrests,
the order of any Governmental Authority having jurisdiction while the same is in force and effect,
civil disturbances, explosions, breakage, accident to machinery, storage tanks or lines of pipe,
inability to obtain or unavoidable delay in obtaining material or equipment, and any other causes
whether of the kind herein enumerated or otherwise not reasonably within the control of the Party
claiming suspension and which by the exercise of due diligence such Party is unable to prevent or
overcome.

- 2 -

 

     “Frontier Cheyenne” shall have the meaning set forth in the introductory paragraph.

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

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

     “Lease and Access Agreement” shall have the meaning set forth in the Recitals.

     “Loss” shall have the meaning set forth in Section 2.2(e).

     “Monitoring Committee” shall have the meaning set forth in Section 7.1(a).

     “Monthly Payment” shall have the meaning set forth in Section 4.1.

     “Operating Partnership” shall have the meaning set forth in the Recitals.

     “Parties” or “Party” shall have the meaning set forth in the introductory
paragraph.

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

     “PPI” shall have the meaning set forth in Section 4.2(a).

     “Premises” shall have the meaning set forth in the Lease and Access Agreement.

     “Prime Rate” shall have the meaning given such term in the Throughput Agreement.

     “Purchase Agreement” shall have the meaning set forth in the Recitals.

     “Refinery Complex” shall have the meaning set forth in the Recitals.

     “Relevant Assets” shall have the meaning set forth in the Lease and Access Agreement.

     “Standard Operating Practice” means such practices, methods, acts, techniques, and
standards as are in accordance with the normal and customary practices in the industry and
applicable Laws, and consistent with the historical operation of the Refinery Complex by Frontier
Cheyenne.

- 3 -

 

     “SUMF Assets” means the systems and facilities located at the Refinery Complex that
are used in or necessary for the provision of the SUMF Items to Cheyenne Logistics pursuant to this
Agreement. The SUMF Assets shall include any Connection Facilities.

     “SUMF Items” shall have the meaning set forth in the Recitals.

     “Term” shall have the meaning set forth in Section 10.1.

     “Third Party” means any Person other than Frontier Cheyenne, Cheyenne Logistics or
their respective Affiliates.

     “Throughput Agreement” means the Pipelines, Tankage and Loading Rack Throughput
Agreement (Cheyenne) by and between Frontier Cheyenne and Cheyenne Logistics dated the date hereof.

     1.2 Interpretation.

          (a) Any reference to the singular includes the plural and vice versa, any reference to natural
persons includes legal persons and vice versa, and any reference to a gender includes the other
gender.

          (b) The words “hereof”, “herein”, and “hereunder” and words of similar import, when used in
this Agreement, shall refer to this Agreement as a whole and not to any particular provision of
this Agreement.

          (c) Any reference to Articles, Sections, Exhibits and Schedules are, unless otherwise stated,
references to Articles, Sections, Exhibits and Schedules of or to this Agreement. The headings in
this Agreement have been inserted for convenience only and shall not be taken into account in its
interpretation.

          (d) Exhibit A hereto forms an integral part of this Agreement and is equally binding
therewith. Any reference to “this Agreement” shall include such Exhibit A.

          (e) References to a Person shall include any permitted assignee or successor to such party in
accordance with this Agreement.

          (f) If any period is referred to in this Agreement by way of reference to a number of days,
the days shall be calculated exclusively of the first and inclusively of the last day unless the
last day falls on a day that is not a Business Day in which case the last day shall be the next
succeeding Business Day.

          (g) The use of “or” is not intended to be exclusive unless explicitly indicated otherwise.

          (h) The words “includes,” “including,” or any derivation thereof shall mean “including without
limitation.”

- 4 -

 

ARTICLE 2

RELATIONSHIP OF PARTIES

     2.1 Rights and Obligations.

     The Parties hereby enter into this Agreement for the purpose of setting forth their respective
rights and obligations relating to the provision by Frontier Cheyenne of the SUMF Items to Cheyenne
Logistics in connection with Cheyenne Logistics’ ownership, operation and maintenance of the
Relevant Assets.

     2.2 Nature of the Relationship.

          (a) Except as provided herein, this Agreement shall not in any manner limit the Parties in
carrying on their respective separate businesses or operations or impose upon any Party a fiduciary
duty vis-à-vis the other Party.

          (b) Frontier Cheyenne and Cheyenne Logistics recognize that portions of each of their
respective businesses and operations are conducted within the Refinery Complex, and that necessary
interactions result from such proximity. The respective businesses and operations of Frontier
Cheyenne and Cheyenne Logistics will be managed and conducted by them, as independent companies,
and each may act and conduct its business and operations independently wherever possible. Further,
Frontier Cheyenne and Cheyenne Logistics recognize their mutual responsibility to support the
capability of each other to continue to conduct their respective businesses and operations for
routine and non-routine activities (including, but not limited to, start-ups, shut downs,
turnarounds, emergencies and other infrequent events).

          (c) Notwithstanding the foregoing, nothing in this Agreement and no actions taken by the
Parties shall constitute a partnership, joint venture, association or other co-operative entity
among the Parties or authorize either Party to represent or contract on behalf of the other Party.
Frontier Cheyenne, as the supplier of the SUMF Items, is acting solely as an independent contractor
and is not an agent of Cheyenne Logistics. The provision of the SUMF Items hereunder shall be
under the sole supervision, control and direction of Frontier Cheyenne and not Cheyenne Logistics.

          (d) Notwithstanding Cheyenne Logistics’ obligation to maintain and operate the Relevant Assets
and Additional Improvements and comply with applicable Laws, Frontier Cheyenne and Cheyenne
Logistics acknowledge that Frontier Cheyenne may, as required by any applicable Governmental
Authorities, maintain air quality and other environmental permits in its name. Consequently and
also for the ease of administration, Frontier Cheyenne may maintain in its name the air quality
permits and other authorizations applicable to all, or part of, the Relevant Assets and Additional
Improvements and may be responsible for making any reports or other notifications to Governmental
Authorities pursuant to such permits or Laws; provided that upon Frontier Cheyenne’s written
request Cheyenne Logistics shall apply for, obtain and maintain any such permits in its name.
Nothing in this Agreement shall reduce Cheyenne Logistics’ obligations under Laws with respect to
the Relevant Assets and Additional Improvements.

          (e) Notwithstanding the foregoing, Cheyenne Logistics shall defend, indemnify, and hold
harmless Frontier Cheyenne and its representatives and agents from and

- 5 -

 

against all claims, demands, liabilities, causes of action, suits, judgments, damages and
expenses (including reasonable attorneys’ fees) arising from any injury to or death of any person
or the damage to or theft, destruction, loss or loss of use of, any property or inconvenience (a
“Loss”) related to Frontier Cheyenne’s performance under this Agreement (including the
performance by Frontier Cheyenne’s employees and contractors), except to the extent caused by the
gross negligence or willful misconduct of Frontier Cheyenne or its employees, agents or
contractors. It being agreed that this indemnity is intended to indemnify Frontier Cheyenne against
the consequences of their own negligence or fault, even when Frontier Cheyenne or its employees,
agents or contractors are jointly, comparatively, contributively, or concurrently negligent with
Cheyenne Logistics, and even though any such claim, cause of action or suit is based upon or
alleged to be based upon the strict liability of Frontier Cheyenne or its employees, agents or
contractors; however, such indemnity shall not apply to the sole or gross negligence or willful
misconduct of Frontier Cheyenne and its employees, agents or contractors. The indemnity set forth
in this Section shall survive termination or expiration of this Agreement and shall not terminate
or be waived, diminished or affected in any manner by any abatement or apportionment of the Annual
Service Fee (as defined below) under any provision of this Agreement. If any proceeding is filed
for which indemnity is required hereunder, Cheyenne Logistics agrees, upon request therefor, to
defend Frontier Cheyenne in such proceeding at its sole cost using counsel satisfactory to Frontier
Cheyenne.

ARTICLE 3

PROVISION OF SUMF ITEMS

     3.1 Provision of SUMF Items.

          (a) During the Term of this Agreement, Frontier Cheyenne shall make available and provide to
Cheyenne Logistics, in accordance with the terms and conditions of this Agreement, the SUMF Items
described more fully on Exhibit A to this Agreement for use by Cheyenne Logistics and any
of its Affiliates and agents in connection with Cheyenne Logistics’ ownership, operation and
maintenance of the Relevant Assets and any Additional Improvements.

          (b) If Cheyenne Logistics reasonably believes in good faith that a SUMF Item provided is not
of the quality or quantity necessary to operate and maintain the Relevant Assets and any Additional
Improvements as currently operated and maintained, Cheyenne Logistics may deliver written notice of
such claim. If Frontier Cheyenne does not reasonably satisfy Cheyenne Logistics’ claim pursuant to
the foregoing sentence within 30 days after receipt of such notice (or if such claim is of a nature
that cannot be resolved within 30 days, if Frontier Cheyenne does not commence to satisfy such
claim within 30 days after receipt of such notice and thereafter diligently pursue satisfying such
claim to completion), then Cheyenne Logistics may reject such SUMF Item and submit a proposal to
Frontier Cheyenne to reduce the amount of the Annual Service Fee in accordance with Section 4.3. If
Frontier Cheyenne refuses to reduce the Annual Service Fee, the Dispute shall be resolved in
accordance with the provisions of Article 9.

          (c) Frontier Cheyenne shall notify Cheyenne Logistics as soon as practicable of any actual or
anticipated changes in the character of any SUMF Item or any actual or

- 6 -

 

anticipated interruptions, shut-downs, turnarounds or similar events that may adversely affect
the provision of any SUMF Item.

          (d) Frontier Cheyenne shall provide all SUMF Items and perform all services hereunder in
accordance with Standard Operating Practice. The provision of all SUMF Items and services
hereunder shall be on a non-discriminatory basis comparable to that provided or performed by
Frontier Cheyenne with respect to its own business at the Refinery Complex unless otherwise
specified herein.

     3.2 Increased Quantities and Additional SUMF Items.

          (a) If subsequent to the date hereof increased quantities of any SUMF Item are reasonably
required by Cheyenne Logistics in connection with its ownership, operation or maintenance of the
Relevant Assets or any improvements or additions thereto, Frontier Cheyenne shall use commercially
reasonable efforts to provide such increased quantities of such SUMF Item on the same terms and
conditions set forth in Exhibit A, so long as the provision of such increased quantities
does not interfere in any material respect with Frontier Cheyenne’s operations at the Refinery
Complex or require Frontier Cheyenne to make a capital improvement to any SUMF Asset. If the
provision by Frontier Cheyenne of increased quantities of any SUMF Item as requested by Cheyenne
Logistics would require Frontier Cheyenne to make such a capital improvement, then Cheyenne
Logistics may submit a request to Frontier Cheyenne pursuant to Section 6.1. The Annual Service
Fee with respect to increased quantities of any SUMF Item requested by Cheyenne Logistics may be
increased in accordance with Article 4 of this Agreement. Notwithstanding anything to the contrary
herein, in the event that (i) Cheyenne Logistics uses the Relevant Assets to provide services to
third parties, (ii) Cheyenne Logistics’ provision of such third-party services results in a
material increase of any SUMF Item required by Cheyenne Logistics, and (iii) provision of such SUMF
Items is available to Cheyenne Logistics from third-party vendors on commercially reasonable terms,
then Frontier Cheyenne may decline to provide such increased and additional SUMF Item. Further,
if, in Frontier Cheyenne’s sole discretion, the provision of any SUMF Item by Frontier Cheyenne in
connection with Cheyenne Logistics’ provision of services to third parties could expose Frontier
Cheyenne or Frontier Cheyenne’s assets to environmental risk or liability, then Frontier Cheyenne
may refuse to provide such SUMF Item in connection with Cheyenne Logistics’ provision of services
to third parties.

          (b) If subsequent to the date hereof one or more additional SUMF Items not specifically
described herein, but which are being produced or utilized by Frontier Cheyenne or its Affiliates
in the normal course of their operations at the Refinery Complex (“Additional SUMF Items”),
are or become reasonably necessary to operate or maintain the Relevant Assets and any Additional
Improvements, Frontier Cheyenne shall use commercially reasonable efforts to provide such
Additional SUMF Items on terms and conditions consistent with the provision of the existing SUMF
Items by Frontier Cheyenne. The Annual Service Fee with respect to such Additional SUMF Items may
be increased in accordance with Article 4 of this Agreement.

     3.3 Use of SUMF Items. Cheyenne Logistics agrees to utilize the SUMF Items solely in
connection with its ownership, operation and maintenance of the Relevant Assets and any

- 7 -

 

Additional Improvements; provided, however, that no provision of this
Agreement shall obligate Cheyenne Logistics in any way to utilize all or part of the SUMF Items.

     3.4 SUMF Assets. Subject to Article 8, Frontier Cheyenne shall be responsible for
operating and maintaining the SUMF Assets, at its sole cost and expense, in accordance with
Standard Operating Practice. Except for any capital improvement project proposed by Cheyenne
Logistics under Article 6 or undertaken by Cheyenne Logistics under Article 5, Frontier Cheyenne
shall be responsible for all costs and expenses of any capital improvements to, or acquisitions of
additional, SUMF Assets.

     3.5 Access. Section 2.2 of the Lease and Access Agreement sets forth the relative
rights of Cheyenne Logistics and Frontier Cheyenne with respect to (a) access by Cheyenne Logistics
to the buildings and other assets owned or leased by Frontier Cheyenne located at the Refinery
Complex that are reasonably necessary for the operation of the Relevant Assets and any Additional
Improvements and (b) access by Frontier Cheyenne to the Premises in order to inspect, repair or
maintain any SUMF Assets, and such section is incorporated herein by reference.

ARTICLE 4

ANNUAL SERVICE FEE

     4.1 Annual Service Fee; Monthly Payment. Within thirty (30) days following the end of
each calendar month, Cheyenne Logistics will pay Frontier Cheyenne an amount equal to one-twelfth
(1/12) (the “Monthly Payment”) of the aggregate of all fees set forth on Exhibit A
(the “Annual Service Fee”) for the provision by Frontier Cheyenne and its Affiliates to
Cheyenne Logistics during such calendar month of all the SUMF Items described in Exhibit A.
The Monthly Payment for the first month under the Term of this Agreement will be prorated based on
the number of days elapsed from the date of this Agreement through the last day of the first
calendar month and the number of days in such calendar month.

     4.2 Increases in Annual Service Fee.

          (a) The Annual Service Fee shall be adjusted on July 1 of each calendar year commencing on
July 1, 2012, by an amount equal to the upper change in the annual change rounded to four decimal
places of the Producers Price Index-Commodities-Finished Goods, (PPI), et al. (“PPI”),
produced by the U.S. Department of Labor, Bureaus of Labor Statistics; provided that the Annual
Service Fee shall never be increased by more than 3% for any such calendar year. The series ID is
WPUSOP3000 as of June 1, 2011 — located at http://www.bls.gov/data/. The change factor shall be
calculated as follows: annual PPI index (most current year) less annual PPI index (most
current year minus 1) divided by annual PPI index (most current year minus 1). An example
for year 2009 change is: [PPI (2008) — PPI (2007)] / PPI (2007) or (177.1 — 166.6) / 166.6 or
..063 or 6.3%. If the PPI index change is negative in a given year then there will be no change in
the Annual Service Fee. If the above index is no longer published, then Frontier Cheyenne and
Cheyenne Logistics shall negotiate in good faith to agree on a new index that gives comparable
protection against inflation, and the same method of adjustment for increases in the new index
shall be used to calculate increases in

- 8 -

 

the Annual Service Fee. If the Parties are unable to agree, a new index will be determined by
binding arbitration in accordance with Section 9.1(d) herein.

          (b) Frontier Cheyenne may also increase the Annual Service Fee for any calendar year by an
amount equal to the actual cost to Frontier Cheyenne of providing increased quantities of any SUMF
Item or of providing any Additional SUMF Items pursuant to Sections 3.2(a) and (b) of this
Agreement.

ARTICLE 5

CONNECTION FACILITIES

     5.1 Connection Facilities.

          (a) Where necessary, Cheyenne Logistics shall install or cause to be installed, at the expense
of Cheyenne Logistics or Frontier Cheyenne as mutually agreed, one or more Connection Facilities,
which shall be of a quality and type reasonably necessary to establish appropriate interconnections
between the Relevant Assets and the SUMF Assets. The design of any necessary Connection Facilities
shall be submitted by Cheyenne Logistics for review by Frontier Cheyenne. Frontier Cheyenne shall
have thirty (30) days in which to notify Cheyenne Logistics of any modifications that are necessary
to conform the design to Standard Operating Practices and to comply with requirements of
Governmental Authorities, otherwise Frontier Cheyenne shall be deemed to have approved such design.

          (b) Frontier Cheyenne and Cheyenne Logistics shall reasonably cooperate with one another with
respect to the installation, operation and maintenance of the Connection Facilities so as to
minimize any disruption to the operation of the Refinery Complex, the Relevant Assets and the SUMF
Assets.

ARTICLE 6

CAPITAL IMPROVEMENTS

     6.1 Capital Improvements Relating to Provision of SUMF Items. Cheyenne Logistics may
submit from time to time to Frontier Cheyenne written requests for Frontier Cheyenne to undertake
capital improvement projects relating to the provision by Frontier Cheyenne of SUMF Items. Any
such requests shall specify in reasonable detail the capital improvements to be made, any permits
that may be required, the estimated cost of such capital improvements, any proposed changes to this
Agreement, and any other relevant information relating to such capital improvement project.
Frontier Cheyenne agrees that it will consider in good faith any such request, but Frontier
Cheyenne shall have no obligation to agree to undertake any such capital improvement project and
may reject any request by Cheyenne Logistics. Frontier Cheyenne shall provide Cheyenne Logistics a
written explanation for the rejection of any request. If Frontier Cheyenne agrees to undertake any
such capital improvement project, Cheyenne Logistics shall be responsible for all costs associated
with such project, without duplication of other amounts paid or payable by Cheyenne Logistics under
this Agreement, including, without limitation: (i) the cost of completing the capital improvements;
(ii) Frontier Cheyenne’s costs and expenses incurred in connection with such project; and (iii) any
increased costs of operation incurred or to be incurred by Frontier Cheyenne as a result of such
project; provided, however,

- 9 -

 

that if other Persons receive any of the benefits of such capital improvement project, such
other Persons shall bear their respective pro rata shares of all costs associated with such project
(based upon and only to the extent of the relative benefits received by them), and Cheyenne
Logistics’ costs with respect thereto shall be reimbursed by Frontier Cheyenne as, when, if and to
the extent savings are received or as, when, if and to the extent the other Person utilizes such
benefits.

ARTICLE 7

MONITORING COMMITTEE

     7.1 Monitoring Committee.

          (a) Frontier Cheyenne and Cheyenne Logistics shall jointly establish a committee (the
“Monitoring Committee”) to review the performance of this Agreement and the provision of
SUMF Items hereunder in an effort to ensure the smooth and efficient performance of this Agreement.
The Monitoring Committee shall be comprised of one representative from Frontier Cheyenne and one
representative from Cheyenne Logistics. In addition, other representatives that such Parties may
reasonably require shall report to, and attend meetings of, the Monitoring Committee.

          (b) The Monitoring Committee shall meet, either in person, by telephone, or other means
mutually acceptable to the members of the Monitoring Committee, within three (3) months of the date
of this Agreement and thereafter no less than once every six (6) months throughout the Term (other
than where the Parties agree that such a periodic meeting is not necessary) and as otherwise
reasonably requested by a Party.

          (c) The Monitoring Committee shall endeavor in good faith to resolve issues raised by either
of the Parties in respect of the performance of this Agreement and the provision of any SUMF Item
hereunder. The Monitoring Committee shall review the performance of the Parties in the provision
and receipt of SUMF Items under this Agreement and shall consider any proposed improvement plans.

          (d) The Monitoring Committee shall have the authority to develop modifications or amendments
to the Exhibits to this Agreement on behalf of the Parties; however, to become effective any such
modifications or amendments must be in writing and be duly signed by the Parties. The Monitoring
Committee shall, as needed to carry out its duties under this Article 7, develop mutually agreed
protocols and administrative procedures.

ARTICLE 8

LIABILITY AND INDEMNIFICATION

     8.1 Limitation of Liability. Notwithstanding anything to the contrary in this
Agreement, neither Party nor its respective Affiliates shall be liable, responsible or accountable
in damages or otherwise to the other Party or its respective Affiliates for any INCIDENTAL,
INDIRECT, SPECIAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES, LOST PROFITS OR OTHER BUSINESS
INTERRUPTION DAMAGES IN TORT, CONTRACT OR OTHERWISE UNDER OR ON ACCOUNT OF THIS AGREEMENT, EXCEPT
THOSE PAYABLE TO THIRD PARTIES FOR WHICH CHEYENNE

- 10 -

 

LOGISTICS, FRONTIER CHEYENNE OR THEIR RESPECTIVE AFFILIATES WOULD BE LIABLE UNDER THIS ARTICLE
8.

     8.2 Indemnification.

          (a) CHEYENNE LOGISTICS SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS FRONTIER CHEYENNE AND ITS
AFFILIATES FROM AND AGAINST ANY ADVERSE CONSEQUENCES RESULTING OR ARISING FROM, OR ATTRIBUTABLE TO
(A) THE FAILURE TO PERFORM ANY COVENANT OR AGREEMENT MADE OR UNDERTAKEN BY CHEYENNE LOGISTICS IN
THIS AGREEMENT OR (B) ANY ACTS OR OMISSIONS OF CHEYENNE LOGISTICS AND ITS AFFILIATES IN CONNECTION
WITH THE PERFORMANCE OF CHEYENNE LOGISTICS’ OBLIGATIONS UNDER THIS AGREEMENT THAT CONSTITUTE
NEGLIGENCE, WILLFUL MISCONDUCT OR GROSS NEGLIGENCE.

          (b) FRONTIER CHEYENNE SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS CHEYENNE LOGISTICS AND ITS
AFFILIATES FROM AND AGAINST ANY ADVERSE CONSEQUENCES RESULTING OR ARISING FROM, OR ATTRIBUTABLE TO
(A) THE FAILURE TO PERFORM ANY COVENANT OR AGREEMENT MADE OR UNDERTAKEN BY FRONTIER CHEYENNE IN
THIS AGREEMENT OR (B) ANY ACTS OR OMISSIONS OF FRONTIER CHEYENNE AND ITS AFFILIATES IN CONNECTION
WITH THE PERFORMANCE OF FRONTIER CHEYENNE’S OBLIGATIONS UNDER THIS AGREEMENT THAT CONSTITUTE
NEGLIGENCE, WILLFUL MISCONDUCT OR GROSS NEGLIGENCE.

     8.3 Specific Performance. Notwithstanding anything to the contrary contained in this
Agreement, including this Article 8, each Party shall be entitled to specific performance of the
obligations of the other Party under this Agreement.

     8.4 Survival. The provisions of this Article 8 shall survive the termination of this
Agreement.

ARTICLE 9

DISPUTE RESOLUTION

     9.1 Dispute Resolution.

          (a) Any Dispute arising out of or in connection with this Agreement, including any question
regarding the existence, validity or termination of this Agreement, shall be exclusively resolved
in accordance with this Article 9.

          (b) In the event of a Dispute between the Parties, the Parties shall, within ten (10) days of
a written request by either Party to the other Party, meet in good faith to resolve such Dispute.

          (c) Any Dispute that cannot be resolved by the Parties shall be submitted to the Monitoring
Committee which shall endeavor to amicably resolve the Dispute. The Parties

- 11 -

 

shall provide the Monitoring Committee with such information as it reasonably requires to
enable it to determine the issues relevant to the Dispute.

          (d) If the Parties are unable to resolve the dispute within fifteen (15) days after submission
of such dispute to the Monitoring Committee (or such other period as may be agreed by the Parties),
either Party may submit the matter to arbitration in accordance with the terms of the Throughput
Agreement; provided, however, that (i) the term “this Agreement” when used therein shall be deemed
to refer to this Agreement, (ii) the term “parties hereto” shall be deemed to refer to the Parties
to this Agreement, (iii) any reference to a Party therein shall be deemed to refer to a Party under
this Agreement, and (iv) the term “Frontier Cheyenne” shall be deemed to refer to Frontier Refining
LLC and the term “Cheyenne Logistics” shall be deemed to refer to Cheyenne Logistics LLC.

          (e) Pending resolution of any Dispute between the Parties, the Parties shall continue to
perform in good faith their respective obligations under this Agreement based upon the last agreed
performance demonstrated prior to the Dispute.

          (f) Resolution of any Dispute between the Parties involving payment of money by one Party to
the other shall include payment of interest at the Prime Rate from the original due date of such
amount.

          (g) Each Party shall, in addition to all rights provided herein or provided by Law, be
entitled to the remedies of specific performance and injunction to enforce its rights hereunder.

ARTICLE 10

TERM AND TERMINATION

     10.1 Term. This Agreement shall be in full force and effect on and from the date
hereof and shall continue for a term that is co-terminous with the Lease and Access Agreement (the
“Term”) such that if the Lease and Access Agreement is terminated or expires for any
reason, this Agreement shall also be deemed to have terminated on the same date of the termination
or expiration of the Lease and Access Agreement.

     10.2 Termination by Frontier Cheyenne. Frontier Cheyenne may, in addition to its
other remedies, terminate this Agreement as a whole in any one of the following circumstances:

          (a) if a Bankruptcy Event occurs and is continuing in relation to Cheyenne Logistics or its
Affiliates and Cheyenne Logistics does not provide adequate assurances to Frontier Cheyenne within
thirty (30) days of the occurrence of the Bankruptcy Event that Cheyenne Logistics will continue to
pay the Annual Service Fee and other charges on the terms and conditions of this Agreement;

          (b) with no less than thirty (30) days prior written notice following a decision by Cheyenne
Logistics to discontinue the operation of all or substantially all of the Relevant Assets and any
Additional Improvements; or

- 12 -

 

          (c) if Cheyenne Logistics without proper justification fails to pay any undisputed Annual
Service Fee (or portion thereof) or other charge within thirty (30) days of the date when such
payment became due, and such failure continues thereafter for a period of thirty (30) days after
written notice from Frontier Cheyenne.

     10.3 Effect of Termination.

          (a) Each Party shall use its reasonable commercial efforts to minimize any adverse effect to
the other Party resulting from the termination of the rendering, in whole or in part, of any SUMF
Item under this Agreement.

          (b) Within sixty (60) days after termination of this Agreement in whole, Frontier Cheyenne
shall provide Cheyenne Logistics with a final accounting of the amount of (i) any Annual Service
Fee and other applicable charges due with respect to the period beginning on January 1 of the
calendar year in which the termination occurred and ending on the effective date of the
termination; and (ii) any unpaid and undisputed Annual Service Fee and other applicable charges
attributable to the prior calendar year. If Cheyenne Logistics agrees with the total amount shown
on the final accounting, Cheyenne Logistics shall pay to Frontier Cheyenne such amount within
thirty (30) days following the receipt of such final accounting. The Parties shall meet in good
faith to resolve any Dispute relating to the final accounting as expeditiously as possible.

          (c) Any termination of this Agreement, either in whole or in part, and termination of any
individual SUMF Item shall be without prejudice to the accrued rights, remedies and liabilities of
the Parties at the time of such termination and all provisions of this Agreement necessary for the
full enjoyment thereof shall survive termination for the period so necessary.

          (d) If there is a Dispute regarding the termination of this Agreement or a SUMF Item under
this Article 10, then no termination shall occur until thirty (30) days following resolution of the
Dispute or by written agreement of the Parties.

ARTICLE 11

GENERAL PROVISIONS

     11.1 Force Majeure. In the event of Cheyenne Logistics or Frontier Cheyenne being
rendered unable, wholly or in part, by Force Majeure to carry out its obligations under this
Agreement, it is agreed that on such Party’s giving notice and full particulars of such Force
Majeure to the other Party as soon as practicable after the occurrence of the cause relied on, then
the obligations of the parties, so far as they are affected by such Force Majeure, shall be
suspended during the continuance of any inability so caused but for no longer period, and such
cause shall, as far as possible, be remedied with all reasonable dispatch. It is understood and
agreed that the settlement of strikes or lockouts shall be entirely within the discretion of the
Party having the difficulty, and that the above requirements that any Force Majeure shall be
remedied with all reasonable dispatch shall not require the settlement of strikes or lockouts by
acceding to the demands of the opposing party when such course is inadvisable in the discretion of
the Party having the difficulty. Notwithstanding anything in this Agreement to the contrary,
inability of a

- 13 -

 

Party to make payments when due, be profitable or to secure funds, arrange bank
loans or other financing, obtain credit or have adequate capacity or production (other than for reasons of
Force Majeure) shall not be regarded as events of Force Majeure.

     11.2 Intellectual Property Rights. Neither this Agreement nor the performance by
either of the Parties of its duties hereunder shall operate to convey, license or otherwise
transfer from one Party to the other any patent, know-how, trade secrets or other intellectual
property rights. The copyright, property and any other rights in any document or material supplied
under this Agreement shall, in the absence of any express provision to the contrary thereon, remain
with the disclosing Party.

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

          Notices to Frontier Cheyenne:

c/o HollyFrontier Corporation

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attn: President

Email address: president@hollyfrontier.com

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

c/o HollyFrontier Corporation

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attn: General Counsel

Email address: generalcounsel@hollyfrontier.com

          Notices to Cheyenne Logistics:

c/o Holly Energy Partners, L.P.

2828 N. Harwood, Suite 1300

Dallas, TX 75201

Attn: President

Email address: president@hollyenergy.com

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

- 14 -

 

c/o Holly Energy Partners, L.P.

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attn: General Counsel

Email address: generalcounsel@hollyenergy.com

          Any Party may at any time change its address for service from time to time by giving notice to
the other Parties in accordance with this Section 11.3.

     11.4 Severability. If any term or other provision of this Agreement is invalid,
illegal or incapable of being enforced by any Law or public policy, all other terms and provisions
of this Agreement shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby is not affected in any manner materially
adverse to either Party hereto. Upon such determination that any term or other provision is
invalid, illegal, or incapable of being enforced, the Parties hereto shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the Parties as closely as possible
in an acceptable manner in order that the transactions contemplated hereby are consummated as
originally contemplated to the greatest extent possible.

     11.5 Entire Agreement. This Agreement constitutes the entire agreement of the Parties
hereto with respect to the subject matter hereof and supersedes all prior agreements and
undertakings, both written and oral, between the Parties hereto with respect to the subject matter
hereof.

     11.6 Waiver. To be effective, any waiver of any right under this Agreement must be in
writing and signed by a duly authorized officer or representative of the Party bound thereby.

     11.7 Incorporation by Reference. Any reference herein to any Exhibit to this
Agreement will incorporate such Exhibit herein as if it were set out in full in the text of this
Agreement.

     11.8 Succession and Assignment. This Agreement may be assigned in connection with,
and subject to the terms and conditions set forth in Section 13(b) of the Throughput Agreement,
which such terms and conditions are incorporated herein by reference. Notwithstanding anything to
the contrary herein or in the Throughput Agreement, Frontier Cheyenne may engage third-party
contractors to perform any of the services or actions Frontier Cheyenne is required to perform
hereunder without Cheyenne Logistics’ prior consent.

     11.9 Binding Effect. This Agreement will be binding upon, and will inure to the
benefit of, the Parties and their respective successors, permitted assigns and legal
representatives.

     11.10 Amendment. This Agreement may not be amended or modified except by an
instrument in writing signed by, or on behalf of, each of the Parties hereto.

     11.11 No Third Party Beneficiaries. No Person not a Party to this Agreement will have
any rights under this Agreement as a third party beneficiary or otherwise.

- 15 -

 

     11.12 Governing Law. THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE
GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF WYOMING WITHOUT GIVING
EFFECT TO PRINCIPLES THEREOF RELATING TO CONFLICTS OF LAW RULES THAT WOULD DIRECT THE APPLICATION
OF THE LAWS OF ANOTHER JURISDICTION.

     11.13 Cooperation. The Parties acknowledge that they are entering into a long-term
arrangement in which the cooperation of both Parties will be required. If, during the Term of this
Agreement, changes in the operations, facilities or methods of either Party will materially benefit
a Party without detriment to the other Party, the Parties commit to each other to make reasonable
efforts to cooperate and assist each other.

     11.14 Further Assurances. The Parties shall execute such additional documents and
shall cause such additional actions to be taken as may be required or, in the judgment of any
Party, be necessary or desirable, to effect or evidence the provisions of this Agreement and the
transactions contemplated hereby.

     11.15 Recording. Upon the request of any Party, Cheyenne Logistics and Frontier
Cheyenne shall execute, acknowledge, deliver and record a “short form” memorandum of this
Agreement.

     11.16 Conflicts Between Agreements. In the event a conflict between the terms and
conditions contained in the Throughput Agreement or the other Ancillary Agreements and this
Agreement arises in connection with any matter pertaining to the provision of the SUMF Items, the
terms and conditions contained in the Throughput Agreement will govern. Nothing contained in this
Agreement shall be deemed to limit or restrict Cheyenne Logistics’ rights to fully use and enjoy
the rights and benefits it has under the Purchase Agreements or the other Ancillary Agreements.

     11.17 Counterparts. This Agreement may be executed in one or more counterparts, and
by the Parties hereto in separate counterparts, each of which when executed shall be deemed to be
an original but all of which taken together shall constitute one and the same agreement.

[Remainder of Page Intentionally Left Blank]

- 16 -

 

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly
authorized officers or representatives to be effective as of November 1, 2011.

Frontier Cheyenne:

	 	 	 	 	 	 	 

	 	 	FRONTIER REFINING LLC,	 	 
	 	 	a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Name: James M. Stump	 	 
	 	 	Title: Senior Vice President, Refinery Operations	 	 

Cheyenne Logistics:

	 	 	 	 	 	 	 

	 	 	CHEYENNE LOGISTICS LLC,	 	 
	 	 	a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Name: Mark T. Cunningham	 	 
	 	 	Title: Vice President, Operations	 	 

Signature Page –

Site Services Agreement (Cheyenne)

 

 

EXHIBIT A

Frontier Cheyenne will supply the services listed on this Exhibit A to Cheyenne Logistics
with respect to Cheyenne Logistics’ ownership, operation and maintenance of the Relevant Assets.
Cheyenne Logistics will pay Frontier Cheyenne the Annual Service Fee of $240,000 (such payment to
be made in monthly installments) for these services.

	 	•	 	Wastewater Processing — Provided that the Wyoming Department of Environmental Quality
(“WDEQ”) does not object, all waste water treatment will be supplied to Cheyenne
Logistics by Frontier Cheyenne from existing Refinery Complex sources. This treatment
pertains to dock and sump materials generated during the normal course of operations and
includes sump generated waste materials. The Parties acknowledge that WDEQ may impose
pre-treatment standards on any waste waters Cheyenne Logistics releases to Frontier
Cheyenne for processing.
	 
	 	•	 	Fire Protection — Frontier Cheyenne will provide response support in the event of an
emergency. Frontier Cheyenne will maintain the existing tank farm fire water system and
any necessary improvements will be made by Frontier Cheyenne.
	 
	 	•	 	Security — All security patrols, monitoring and surveillance will be provided to
Cheyenne Logistics by Frontier Cheyenne.
	 
	 	•	 	Utilities — All gas, water, steam and electricity will be furnished by Frontier
Cheyenne for operation of all the Relevant Assets within the Refinery Complex.
	 
	 	•	 	Air Permit — Frontier Cheyenne will retain the Relevant Assets on all applicable air
permits and will handle all agency reporting requirements. Cheyenne Logistics will supply
field data to Frontier Cheyenne necessary for Frontier Cheyenne to fulfill its reporting
requirements.
	 
	 	•	 	Solid / Hazardous Waste Processing — Under the provisions of the Resource Conservation
and Recovery Act (RCRA) Cheyenne Logistics and Frontier Cheyenne will be co-generators of
any solid / hazardous wastes that may be generated by El Dorado Logistics at the contiguous
facility. Any such wastes shipped under a hazardous waste manifest will show Frontier
Cheyenne as the generator.
	 
	 	•	 	Spill Prevention Control and Countermeasures (SPCC) Plan — Frontier Cheyenne will
maintain a facility-wide SPCC plan clearly identifying those assets owned by both parties
and their resultant responsibilities.
	 
	 	•	 	IT Infrastructure — Cheyenne Logistics will be entitled to access and use of all
necessary IT infrastructures for the operation of the Relevant Assets. Frontier Cheyenne
will maintain all IT infrastructures.

Exhibit A - 1 

 

	 	•	 	Office Space — Frontier Cheyenne will furnish necessary office space for the employees
of Cheyenne Logistics.
	 
	 	•	 	Parking —Frontier Cheyenne will provide parking necessary for Cheyenne Logistics’
employees’ personal vehicles, Cheyenne Logistics’ company-owned vehicles, and auxiliary
maintenance equipment.
	 
	 	•	 	Maintenance, Warehouse Storage and Shop — Frontier Cheyenne will provide all warehouse
storage necessary to store maintenance and spare part inventories for Cheyenne Logistics’
exclusive use. These storage areas will be secured and controlled separate from Frontier
Cheyenne’s warehouse operations.
	 
	 	•	 	Contract Maintenance Labor — Frontier Cheyenne will provide maintenance labor to
Cheyenne Logistics on an as-needed basis. Frontier Cheyenne will charge Cheyenne Logistics
an agreed hourly rate for the maintenance services.
	 
	 	•	 	Laydown Area — Frontier Cheyenne will provide Cheyenne Logistics an outdoor laydown
area for maintenance and project activities. The area will be separate from Frontier
Cheyenne’s laydown area.
	 
	 	•	 	LDAR Monitoring and Reporting — Frontier Cheyenne will provide to Cheyenne Logistics
services necessary to perform leak monitoring on all Relevant Assets within the Refinery
Complex as required by any applicable consent decree. Frontier Cheyenne’s and Cheyenne
Logistics’ employees will be included in the refinery LDAR training program. Frontier
Cheyenne will provide data to Cheyenne Logistics on all LDAR surveillance activities.
	 
	 	•	 	PSM — Frontier Cheyenne will include all Relevant Assets in the PSM program and
procedures. Frontier Cheyenne will provide all necessary PSM management and administrative
services. Cheyenne Logistics will participate in all processes necessary under PSM in
order to maintain compliance.
	 
	 	•	 	Laboratory Services — Frontier Cheyenne will provide all laboratory services necessary
for quality control, blending and regulatory activities. The services will include
analysis of samples from blend stocks, finished products and crude oils.
	 
	 	•	 	Telephones — Frontier Cheyenne will provide all local and long distance telephone (land
line only) service.
	 
	 	•	 	Knock Engines — Frontier Cheyenne will provide all maintenance and calibration of the
knock engines.

Exhibit A - 2 

 

EXHIBIT H

Form of El Dorado Site Services Agreement

 

 

EXECUTION VERSION

SITE SERVICES AGREEMENT

(EL DORADO)

     This Site Services Agreement (this “Agreement”), is entered into as of November 9,
2011 to be effective as of November 1, 2011 by and between FRONTIER EL DORADO REFINING LLC, a
limited liability company organized and existing under the laws of Delaware (“Frontier El
Dorado”), and EL DORADO LOGISTICS LLC, a limited liability company organized and existing under
the laws of Delaware (“El Dorado Logistics”). Frontier El Dorado and El Dorado Logistics
are hereinafter collectively referred to as “Parties” and each singularly as a
“Party”).

R E C I T A L S:

     WHEREAS, pursuant to the terms of that certain LLC Interest Purchase Agreement, dated
effective as of November 1, 2011 (the “Purchase Agreement”), by and among HollyFrontier
Corporation, a Delaware corporation, Frontier El Dorado and Frontier Refining LLC, a Delaware
limited liability company, as Sellers, Holly Energy Partners — Operating, L.P., a Delaware limited
partnership (the “Operating Partnership”), as Buyer, and Holly Energy Partners, L.P., a
Delaware limited partnership, the Operating Partnership acquired all of the issued and outstanding
limited liability company interests of El Dorado Logistics, the owner of the Relevant Assets (as
defined in the Lease and Access Agreement);

     WHEREAS, simultaneously herewith, Frontier El Dorado and El Dorado Logistics are entering into
that certain Lease and Access Agreement (El Dorado) dated as of the date hereof (the “Lease and
Access Agreement”) pursuant to which, among other things, El Dorado Logistics will lease from
Frontier El Dorado the real property on which the Relevant Assets (as defined in the Lease and
Access Agreement are located within that certain refinery complex owned by Frontier El Dorado,
commonly known as the El Dorado Refinery, and located in the City of El Dorado, Butler County,
Kansas (the “Refinery Complex”); and

     WHEREAS, Frontier El Dorado has agreed to provide to El Dorado Logistics, and El Dorado
Logistics has agreed to accept, shared use of certain services, utilities, materials and facilities
as more fully described on Exhibit A (each an “SUMF Item” and collectively the
“SUMF Items”) located at the Refinery Complex that are necessary to operate and maintain
the Relevant Assets as currently operated and maintained.

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

 

 

ARTICLE 1

DEFINITIONS AND INTERPRETATIONS

     1.1 Definitions.

     For purposes of this Agreement, the following capitalized terms shall have the meanings
specified herein. Capitalized terms used in this Agreement and not otherwise defined shall have
the meanings for such terms set forth in the Lease and Access Agreement.

     “Affiliate” has the meaning given such term in the Purchase Agreement.

     “Additional Improvements” shall have the meaning given such term in the Lease and
Access Agreement.

     “Additional SUMF Items” shall have the meaning set forth in Section 3.2(b).

     “Agreement” shall have the meaning set forth in the introductory paragraph.

     “Ancillary Agreements” means, collectively, the Purchase Agreement, the Lease and
Access Agreement, the Throughput Agreement and any other agreement executed by the Parties hereto
in connection with the Operating Partnership’s acquisition of El Dorado Logistics and El Dorado
Logistics’ ownership of the Relevant Assets that has not been otherwise amended or superseded.

     “Annual Service Fee” shall have the meaning set forth in Section 4.1.

     “Bankruptcy Event” means, in relation to any Party, (i) the making of a general
assignment for the benefit of creditors by such Party; (ii) the entering into of any arrangement or
composition with creditors as a result of insolvency (other than for the purposes of a solvent
reconstruction or amalgamation); (iii) the institution by such Party of proceedings (a) seeking to
adjudicate such Party as bankrupt or insolvent or seeking protection or relief from creditors, or
(b) seeking liquidation, winding up, or rearrangement, reorganization or adjustment of such Party
or its debts (other than for purposes of a solvent reconstruction or amalgamation), or (c) seeking
the entry of an order for the appointment of a receiver, trustee or other similar official for such
Party or for all or a substantial part of such Party’s assets; or (iv) the institution of any
proceeding of the type described in (iii) above against such Party, which proceeding shall not have
been dismissed within ninety (90) days following its institution.

     “Connection Facilities” means all physical interconnections and related equipment and
facilities required to deliver the SUMF Items described in Exhibit A to the Relevant Assets
from various locations within the Refinery Complex.

     “Dispute” means any dispute or difference that arises between the Parties in
connection with or arising out of this Agreement (including, any dispute as to the termination or
invalidity of this Agreement or any provision of it).

     “El Dorado Logistics” shall have the meaning set forth in the introductory paragraph.

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     “Force Majeure” means acts of God, strikes, lockouts or other industrial disturbances,
acts of the public enemy, wars, blockades, insurrections, riots, storms, floods, washouts, arrests,
the order of any Governmental Authority having jurisdiction while the same is in force and effect,
civil disturbances, explosions, breakage, accident to machinery, storage tanks or lines of pipe,
inability to obtain or unavoidable delay in obtaining material or equipment, and any other causes
whether of the kind herein enumerated or otherwise not reasonably within the control of the Party
claiming suspension and which by the exercise of due diligence such Party is unable to prevent or
overcome.

     “Frontier El Dorado” shall have the meaning set forth in the introductory paragraph.

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

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

     “Lease and Access Agreement” shall have the meaning set forth in the Recitals.

     “Loss” shall have the meaning set forth in Section 2.2(e).

     “Monitoring Committee” shall have the meaning set forth in Section 7.1(a).

     “Monthly Payment” shall have the meaning set forth in Section 4.1.

     “Operating Partnership” shall have the meaning set forth in the Recitals.

     “Parties” or “Party” shall have the meaning set forth in the introductory
paragraph.

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

     “PPI” shall have the meaning set forth in Section 4.2(a).

     “Premises” shall have the meaning set forth in the Lease and Access Agreement.

     “Prime Rate” shall have the meaning given such term in the Throughput Agreement.

     “Purchase Agreement” shall have the meaning set forth in the Recitals.

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     “Refinery Complex” shall have the meaning set forth in the Recitals.

     “Relevant Assets” shall have the meaning set forth in the Lease and Access Agreement.

     “Standard Operating Practice” means such practices, methods, acts, techniques, and
standards as are in accordance with the normal and customary practices in the industry and
applicable Laws, and consistent with the historical operation of the Refinery Complex by Frontier
El Dorado.

     “SUMF Assets” means the systems and facilities located at the Refinery Complex that
are used in or necessary for the provision of the SUMF Items to El Dorado Logistics pursuant to
this Agreement. The SUMF Assets shall include any Connection Facilities.

     “SUMF Items” shall have the meaning set forth in the Recitals.

     “Term” shall have the meaning set forth in Section 10.1.

     “Third Party” means any Person other than Frontier El Dorado, El Dorado Logistics or
their respective Affiliates.

     “Throughput Agreement” means the Pipelines, Tankage and Loading Rack Throughput
Agreement (El Dorado) by and between Frontier El Dorado and El Dorado Logistics dated the date
hereof.

     1.2 Interpretation.

          (a) Any reference to the singular includes the plural and vice versa, any reference to natural
persons includes legal persons and vice versa, and any reference to a gender includes the other
gender.

          (b) The words “hereof”, “herein”, and “hereunder” and words of similar import, when used in
this Agreement, shall refer to this Agreement as a whole and not to any particular provision of
this Agreement.

          (c) Any reference to Articles, Sections, Exhibits and Schedules are, unless otherwise stated,
references to Articles, Sections, Exhibits and Schedules of or to this Agreement. The headings in
this Agreement have been inserted for convenience only and shall not be taken into account in its
interpretation.

          (d) Exhibit A hereto forms an integral part of this Agreement and is equally binding
therewith. Any reference to “this Agreement” shall include such Exhibit A.

          (e) References to a Person shall include any permitted assignee or successor to such party in
accordance with this Agreement.

          (f) If any period is referred to in this Agreement by way of reference to a number of days,
the days shall be calculated exclusively of the first and inclusively of the last

- 4 -

 

day unless the last day falls on a day that is not a Business Day in which case the last day
shall be the next succeeding Business Day.

          (g) The use of “or” is not intended to be exclusive unless explicitly indicated otherwise.

          (h) The words “includes,” “including,” or any derivation thereof shall mean “including without
limitation.”

ARTICLE 2

RELATIONSHIP OF PARTIES

     2.1 Rights and Obligations.

     The Parties hereby enter into this Agreement for the purpose of setting forth their respective
rights and obligations relating to the provision by Frontier El Dorado of the SUMF Items to El
Dorado Logistics in connection with El Dorado Logistics’ ownership, operation and maintenance of
the Relevant Assets.

     2.2 Nature of the Relationship.

          (a) Except as provided herein, this Agreement shall not in any manner limit the Parties in
carrying on their respective separate businesses or operations or impose upon any Party a fiduciary
duty vis-à-vis the other Party.

          (b) Frontier El Dorado and El Dorado Logistics recognize that portions of each of their
respective businesses and operations are conducted within the Refinery Complex, and that necessary
interactions result from such proximity. The respective businesses and operations of Frontier El
Dorado and El Dorado Logistics will be managed and conducted by them, as independent companies, and
each may act and conduct its business and operations independently wherever possible. Further,
Frontier El Dorado and El Dorado Logistics recognize their mutual responsibility to support the
capability of each other to continue to conduct their respective businesses and operations for
routine and non-routine activities (including, but not limited to, start-ups, shut downs,
turnarounds, emergencies and other infrequent events).

          (c) Notwithstanding the foregoing, nothing in this Agreement and no actions taken by the
Parties shall constitute a partnership, joint venture, association or other co-operative entity
among the Parties or authorize either Party to represent or contract on behalf of the other Party.
Frontier El Dorado, as the supplier of the SUMF Items, is acting solely as an independent
contractor and is not an agent of El Dorado Logistics. The provision of the SUMF Items hereunder
shall be under the sole supervision, control and direction of Frontier El Dorado and not El Dorado
Logistics.

          (d) Notwithstanding El Dorado Logistics’ obligation to maintain and operate the Relevant
Assets and Additional Improvements and comply with applicable Laws, Frontier El Dorado and El
Dorado Logistics acknowledge that Frontier El Dorado may, as required by any applicable
Governmental Authorities, maintain air quality and other environmental permits in its

- 5 -

 

name. Consequently and also for the ease of administration, Frontier El Dorado may maintain
in its name the air quality permits and other authorizations applicable to all, or part of, the
Relevant Assets and Additional Improvements and may be responsible for making any reports or other
notifications to Governmental Authorities pursuant to such permits or Laws; provided that upon
Frontier El Dorado’s written request El Dorado Logistics shall apply for, obtain and maintain any
such permits in its name. Nothing in this Agreement shall reduce El Dorado Logistics’ obligations
under Laws with respect to the Relevant Assets and Additional Improvements.

          (e) Notwithstanding the foregoing, El Dorado Logistics shall defend, indemnify, and hold
harmless Frontier El Dorado and its representatives and agents from and against all claims,
demands, liabilities, causes of action, suits, judgments, damages and expenses (including
reasonable attorneys’ fees) arising from any injury to or death of any person or the damage to or
theft, destruction, loss or loss of use of, any property or inconvenience (a “Loss”)
related to Frontier El Dorado’s performance under this Agreement (including the performance by
Frontier El Dorado’s employees and contractors), except to the extent caused by the gross
negligence or willful misconduct of Frontier El Dorado or its employees, agents or contractors. It
being agreed that this indemnity is intended to indemnify Frontier El Dorado against the
consequences of their own negligence or fault, even when Frontier El Dorado or its employees,
agents or contractors are jointly, comparatively, contributively, or concurrently negligent with El
Dorado Logistics, and even though any such claim, cause of action or suit is based upon or alleged
to be based upon the strict liability of Frontier El Dorado or its employees, agents or
contractors; however, such indemnity shall not apply to the sole or gross negligence or willful
misconduct of Frontier El Dorado and its employees, agents or contractors. The indemnity set forth
in this Section shall survive termination or expiration of this Agreement and shall not terminate
or be waived, diminished or affected in any manner by any abatement or apportionment of the Annual
Service Fee (as defined below) under any provision of this Agreement. If any proceeding is filed
for which indemnity is required hereunder, El Dorado Logistics agrees, upon request therefor, to
defend Frontier El Dorado in such proceeding at its sole cost using counsel satisfactory to
Frontier El Dorado.

ARTICLE 3

PROVISION OF SUMF ITEMS

     3.1 Provision of SUMF Items.

          (a) During the Term of this Agreement, Frontier El Dorado shall make available and provide to
El Dorado Logistics, in accordance with the terms and conditions of this Agreement, the SUMF Items
described more fully on Exhibit A to this Agreement for use by El Dorado Logistics and any
of its Affiliates and agents in connection with El Dorado Logistics’ ownership, operation and
maintenance of the Relevant Assets and any Additional Improvements.

          (b) If El Dorado Logistics reasonably believes in good faith that a SUMF Item provided is not
of the quality or quantity necessary to operate and maintain the Relevant Assets and any Additional
Improvements as currently operated and maintained, El Dorado Logistics may deliver written notice
of such claim. If Frontier El Dorado does not reasonably satisfy El Dorado Logistics’ claim
pursuant to the foregoing sentence within 30 days after receipt of such notice (or if such claim is
of a nature that cannot be resolved within 30 days, if Frontier El

- 6 -

 

Dorado does not commence to satisfy such claim within 30 days after receipt of such notice and
thereafter diligently pursue satisfying such claim to completion), then El Dorado Logistics may
reject such SUMF Item and submit a proposal to Frontier El Dorado to reduce the amount of the
Annual Service Fee in accordance with Section 4.3. If Frontier El Dorado refuses to reduce the
Annual Service Fee, the Dispute shall be resolved in accordance with the provisions of Article 9.

          (c) Frontier El Dorado shall notify El Dorado Logistics as soon as practicable of any actual
or anticipated changes in the character of any SUMF Item or any actual or anticipated
interruptions, shut-downs, turnarounds or similar events that may adversely affect the provision of
any SUMF Item.

          (d) Frontier El Dorado shall provide all SUMF Items and perform all services hereunder in
accordance with Standard Operating Practice. The provision of all SUMF Items and services
hereunder shall be on a non-discriminatory basis comparable to that provided or performed by
Frontier El Dorado with respect to its own business at the Refinery Complex unless otherwise
specified herein.

     3.2 Increased Quantities and Additional SUMF Items.

          (a) If subsequent to the date hereof increased quantities of any SUMF Item are reasonably
required by El Dorado Logistics in connection with its ownership, operation or maintenance of the
Relevant Assets or any improvements or additions thereto, Frontier El Dorado shall use commercially
reasonable efforts to provide such increased quantities of such SUMF Item on the same terms and
conditions set forth in Exhibit A, so long as the provision of such increased quantities
does not interfere in any material respect with Frontier El Dorado’s operations at the Refinery
Complex or require Frontier El Dorado to make a capital improvement to any SUMF Asset. If the
provision by Frontier El Dorado of increased quantities of any SUMF Item as requested by El Dorado
Logistics would require Frontier El Dorado to make such a capital improvement, then El Dorado
Logistics may submit a request to Frontier El Dorado pursuant to Section 6.1. The Annual Service
Fee with respect to increased quantities of any SUMF Item requested by El Dorado Logistics may be
increased in accordance with Article 4 of this Agreement. Notwithstanding anything to the contrary
herein, in the event that (i) El Dorado Logistics uses the Relevant Assets to provide services to
third parties, (ii) El Dorado Logistics’ provision of such third-party services results in a
material increase of any SUMF Item required by El Dorado Logistics, and (iii) provision of such
SUMF Items is available to El Dorado Logistics from third-party vendors on commercially reasonable
terms, then Frontier El Dorado may decline to provide such increased and additional SUMF Item.
Further, if, in Frontier El Dorado’s sole discretion, the provision of any SUMF Item by Frontier El
Dorado in connection with El Dorado Logistics’ provision of services to third parties could expose
Frontier El Dorado or Frontier El Dorado’s assets to environmental risk or liability, then Frontier
El Dorado may refuse to provide such SUMF Item in connection with El Dorado Logistics’ provision of
services to third parties.

          (b) If subsequent to the date hereof one or more additional SUMF Items not specifically
described herein, but which are being produced or utilized by Frontier El Dorado or its Affiliates
in the normal course of their operations at the Refinery Complex (“Additional SUMF Items”),
are or become reasonably necessary to operate or maintain the Relevant Assets

- 7 -

 

and any Additional Improvements, Frontier El Dorado shall use commercially reasonable efforts
to provide such Additional SUMF Items on terms and conditions consistent with the provision of the
existing SUMF Items by Frontier El Dorado. The Annual Service Fee with respect to such Additional
SUMF Items may be increased in accordance with Article 4 of this Agreement.

     3.3 Use of SUMF Items. El Dorado Logistics agrees to utilize the SUMF Items solely in
connection with its ownership, operation and maintenance of the Relevant Assets and any Additional
Improvements; provided, however, that no provision of this Agreement shall obligate
El Dorado Logistics in any way to utilize all or part of the SUMF Items.

     3.4 SUMF Assets. Subject to Article 8, Frontier El Dorado shall be responsible for
operating and maintaining the SUMF Assets, at its sole cost and expense, in accordance with
Standard Operating Practice. Except for any capital improvement project proposed by El Dorado
Logistics under Article 6 or undertaken by El Dorado Logistics under Article 5, Frontier El Dorado
shall be responsible for all costs and expenses of any capital improvements to, or acquisitions of
additional, SUMF Assets.

     3.5 Access. Section 2.2 of the Lease and Access Agreement sets forth the relative
rights of El Dorado Logistics and Frontier El Dorado with respect to (a) access by El Dorado
Logistics to the buildings and other assets owned or leased by Frontier El Dorado located at the
Refinery Complex that are reasonably necessary for the operation of the Relevant Assets and any
Additional Improvements and (b) access by Frontier El Dorado to the Premises in order to inspect,
repair or maintain any SUMF Assets, and such section is incorporated herein by reference.

ARTICLE 4

ANNUAL SERVICE FEE

     4.1 Annual Service Fee; Monthly Payment. Within thirty (30) days following the end of
each calendar month, El Dorado Logistics will pay Frontier El Dorado an amount equal to one-twelfth
(1/12) (the “Monthly Payment”) of the aggregate of all fees set forth on Exhibit A
(the “Annual Service Fee”) for the provision by Frontier El Dorado and its Affiliates to El
Dorado Logistics during such calendar month of all the SUMF Items described in Exhibit A.
The Monthly Payment for the first month under the Term of this Agreement will be prorated based on
the number of days elapsed from the date of this Agreement through the last day of the first
calendar month and the number of days in such calendar month.

     4.2 Increases in Annual Service Fee.

          (a) The Annual Service Fee shall be adjusted on July 1 of each calendar year commencing on
July 1, 2012, by an amount equal to the upper change in the annual change rounded to four decimal
places of the Producers Price Index-Commodities-Finished Goods, (PPI), et al. (“PPI”),
produced by the U.S. Department of Labor, Bureaus of Labor Statistics; provided that the Annual
Service Fee shall never be increased by more than 3% for any such calendar year. The series ID is
WPUSOP3000 as of June 1, 2011 — located at
http://www.bls.gov/data/. The change factor shall be
calculated as follows: annual PPI index (most current year) less annual PPI index (most
current year minus 1) divided by annual PPI

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index (most current year minus 1). An example for year 2009 change is: [PPI (2008) — PPI
(2007)] / PPI (2007) or (177.1 — 166.6) / 166.6 or .063 or 6.3%. If the PPI index change is
negative in a given year then there will be no change in the Annual Service Fee. If the above
index is no longer published, then Frontier El Dorado and El Dorado Logistics shall negotiate in
good faith to agree on a new index that gives comparable protection against inflation, and the same
method of adjustment for increases in the new index shall be used to calculate increases in the
Annual Service Fee. If the Parties are unable to agree, a new index will be determined by binding
arbitration in accordance with Section 9.1(d) herein.

          (b) Frontier El Dorado may also increase the Annual Service Fee for any calendar year by an
amount equal to the actual cost to Frontier El Dorado of providing increased quantities of any SUMF
Item or of providing any Additional SUMF Items pursuant to Sections 3.2(a) and (b) of this
Agreement.

ARTICLE 5

CONNECTION FACILITIES

     5.1 Connection Facilities.

          (a) Where necessary, El Dorado Logistics shall install or cause to be installed, at the
expense of El Dorado Logistics or Frontier El Dorado as mutually agreed, one or more Connection
Facilities, which shall be of a quality and type reasonably necessary to establish appropriate
interconnections between the Relevant Assets and the SUMF Assets. The design of any necessary
Connection Facilities shall be submitted by El Dorado Logistics for review by Frontier El Dorado.
Frontier El Dorado shall have thirty (30) days in which to notify El Dorado Logistics of any
modifications that are necessary to conform the design to Standard Operating Practices and to
comply with requirements of Governmental Authorities, otherwise Frontier El Dorado shall be deemed
to have approved such design.

          (b) Frontier El Dorado and El Dorado Logistics shall reasonably cooperate with one another
with respect to the installation, operation and maintenance of the Connection Facilities so as to
minimize any disruption to the operation of the Refinery Complex, the Relevant Assets and the SUMF
Assets.

ARTICLE 6

CAPITAL IMPROVEMENTS

     6.1 Capital Improvements Relating to Provision of SUMF Items. El Dorado Logistics may
submit from time to time to Frontier El Dorado written requests for Frontier El Dorado to undertake
capital improvement projects relating to the provision by Frontier El Dorado of SUMF Items. Any
such requests shall specify in reasonable detail the capital improvements to be made, any permits
that may be required, the estimated cost of such capital improvements, any proposed changes to this
Agreement, and any other relevant information relating to such capital improvement project.
Frontier El Dorado agrees that it will consider in good faith any such request, but Frontier El
Dorado shall have no obligation to agree to undertake any such capital improvement project and may
reject any request by El Dorado Logistics. Frontier El Dorado shall provide El Dorado Logistics a
written explanation for the rejection of any request. If

- 9 -

 

Frontier El Dorado agrees to undertake any such capital improvement project, El Dorado
Logistics shall be responsible for all costs associated with such project, without duplication of
other amounts paid or payable by El Dorado Logistics under this Agreement, including, without
limitation: (i) the cost of completing the capital improvements; (ii) Frontier El Dorado’s costs
and expenses incurred in connection with such project; and (iii) any increased costs of operation
incurred or to be incurred by Frontier El Dorado as a result of such project; provided, however,
that if other Persons receive any of the benefits of such capital improvement project, such other
Persons shall bear their respective pro rata shares of all costs associated with such project
(based upon and only to the extent of the relative benefits received by them), and El Dorado
Logistics’ costs with respect thereto shall be reimbursed by Frontier El Dorado as, when, if and to
the extent savings are received or as, when, if and to the extent the other Person utilizes such
benefits.

ARTICLE 7

MONITORING COMMITTEE

     7.1 Monitoring Committee.

          (a) Frontier El Dorado and El Dorado Logistics shall jointly establish a committee (the
“Monitoring Committee”) to review the performance of this Agreement and the provision of
SUMF Items hereunder in an effort to ensure the smooth and efficient performance of this Agreement.
The Monitoring Committee shall be comprised of one representative from Frontier El Dorado and one
representative from El Dorado Logistics. In addition, other representatives that such Parties may
reasonably require shall report to, and attend meetings of, the Monitoring Committee.

          (b) The Monitoring Committee shall meet, either in person, by telephone, or other means
mutually acceptable to the members of the Monitoring Committee, within three (3) months of the date
of this Agreement and thereafter no less than once every six (6) months throughout the Term (other
than where the Parties agree that such a periodic meeting is not necessary) and as otherwise
reasonably requested by a Party.

          (c) The Monitoring Committee shall endeavor in good faith to resolve issues raised by either
of the Parties in respect of the performance of this Agreement and the provision of any SUMF Item
hereunder. The Monitoring Committee shall review the performance of the Parties in the provision
and receipt of SUMF Items under this Agreement and shall consider any proposed improvement plans.

          (d) The Monitoring Committee shall have the authority to develop modifications or amendments
to the Exhibits to this Agreement on behalf of the Parties; however, to become effective any such
modifications or amendments must be in writing and be duly signed by the Parties. The Monitoring
Committee shall, as needed to carry out its duties under this Article 7, develop mutually agreed
protocols and administrative procedures.

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ARTICLE 8

LIABILITY AND INDEMNIFICATION

     8.1 Limitation of Liability. Notwithstanding anything to the contrary in this
Agreement, neither Party nor its respective Affiliates shall be liable, responsible or accountable
in damages or otherwise to the other Party or its respective Affiliates for any INCIDENTAL,
INDIRECT, SPECIAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES, LOST PROFITS OR OTHER BUSINESS
INTERRUPTION DAMAGES IN TORT, CONTRACT OR OTHERWISE UNDER OR ON ACCOUNT OF THIS AGREEMENT, EXCEPT
THOSE PAYABLE TO THIRD PARTIES FOR WHICH EL DORADO LOGISTICS, FRONTIER EL DORADO OR THEIR
RESPECTIVE AFFILIATES WOULD BE LIABLE UNDER THIS ARTICLE 8.

     8.2 Indemnification.

          (a) EL DORADO LOGISTICS SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS FRONTIER EL DORADO AND ITS
AFFILIATES FROM AND AGAINST ANY ADVERSE CONSEQUENCES RESULTING OR ARISING FROM, OR ATTRIBUTABLE TO
(A) THE FAILURE TO PERFORM ANY COVENANT OR AGREEMENT MADE OR UNDERTAKEN BY EL DORADO LOGISTICS IN
THIS AGREEMENT OR (B) ANY ACTS OR OMISSIONS OF EL DORADO LOGISTICS AND ITS AFFILIATES IN CONNECTION
WITH THE PERFORMANCE OF EL DORADO LOGISTICS’ OBLIGATIONS UNDER THIS AGREEMENT THAT CONSTITUTE
NEGLIGENCE, WILLFUL MISCONDUCT OR GROSS NEGLIGENCE.

          (b) FRONTIER EL DORADO SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS EL DORADO LOGISTICS AND ITS
AFFILIATES FROM AND AGAINST ANY ADVERSE CONSEQUENCES RESULTING OR ARISING FROM, OR ATTRIBUTABLE TO
(A) THE FAILURE TO PERFORM ANY COVENANT OR AGREEMENT MADE OR UNDERTAKEN BY FRONTIER EL DORADO IN
THIS AGREEMENT OR (B) ANY ACTS OR OMISSIONS OF FRONTIER EL DORADO AND ITS AFFILIATES IN CONNECTION
WITH THE PERFORMANCE OF FRONTIER EL DORADO’S OBLIGATIONS UNDER THIS AGREEMENT THAT CONSTITUTE
NEGLIGENCE, WILLFUL MISCONDUCT OR GROSS NEGLIGENCE.

     8.3 Specific Performance. Notwithstanding anything to the contrary contained in this
Agreement, including this Article 8, each Party shall be entitled to specific performance of the
obligations of the other Party under this Agreement.

     8.4 Survival. The provisions of this Article 8 shall survive the termination of this
Agreement.

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ARTICLE 9

DISPUTE RESOLUTION

     9.1 Dispute Resolution.

          (a) Any Dispute arising out of or in connection with this Agreement, including any question
regarding the existence, validity or termination of this Agreement, shall be exclusively resolved
in accordance with this Article 9.

          (b) In the event of a Dispute between the Parties, the Parties shall, within ten (10) days of
a written request by either Party to the other Party, meet in good faith to resolve such Dispute.

          (c) Any Dispute that cannot be resolved by the Parties shall be submitted to the Monitoring
Committee which shall endeavor to amicably resolve the Dispute. The Parties shall provide the
Monitoring Committee with such information as it reasonably requires to enable it to determine the
issues relevant to the Dispute.

          (d) If the Parties are unable to resolve the dispute within fifteen (15) days after submission
of such dispute to the Monitoring Committee (or such other period as may be agreed by the Parties),
either Party may submit the matter to arbitration in accordance with the terms of the Throughput
Agreement; provided, however, that (i) the term “this Agreement” when used therein shall be deemed
to refer to this Agreement, (ii) the term “parties hereto” shall be deemed to refer to the Parties
to this Agreement, (iii) any reference to a Party therein shall be deemed to refer to a Party under
this Agreement, and (iv) the term “Frontier El Dorado” shall be deemed to refer to Frontier El
Dorado Refining LLC and the term “El Dorado Logistics” shall be deemed to refer to El Dorado
Logistics LLC.

          (e) Pending resolution of any Dispute between the Parties, the Parties shall continue to
perform in good faith their respective obligations under this Agreement based upon the last agreed
performance demonstrated prior to the Dispute.

          (f) Resolution of any Dispute between the Parties involving payment of money by one Party to
the other shall include payment of interest at the Prime Rate from the original due date of such
amount.

          (g) Each Party shall, in addition to all rights provided herein or provided by Law, be
entitled to the remedies of specific performance and injunction to enforce its rights hereunder.

ARTICLE 10

TERM AND TERMINATION

     10.1 Term. This Agreement shall be in full force and effect on and from the date
hereof and shall continue for a term that is co-terminous with the Lease and Access Agreement (the
“Term”) such that if the Lease and Access Agreement is terminated or expires for any
reason, this Agreement shall also be deemed to have terminated on the same date of the termination
or expiration of the Lease and Access Agreement.

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     10.2 Termination by Frontier El Dorado. Frontier El Dorado may, in addition to its
other remedies, terminate this Agreement as a whole in any one of the following circumstances:

          (a) if a Bankruptcy Event occurs and is continuing in relation to El Dorado Logistics or its
Affiliates and El Dorado Logistics does not provide adequate assurances to Frontier El Dorado
within thirty (30) days of the occurrence of the Bankruptcy Event that El Dorado Logistics will
continue to pay the Annual Service Fee and other charges on the terms and conditions of this
Agreement;

          (b) with no less than thirty (30) days prior written notice following a decision by El Dorado
Logistics to discontinue the operation of all or substantially all of the Relevant Assets and any
Additional Improvements; or

          (c) if El Dorado Logistics without proper justification fails to pay any undisputed Annual
Service Fee (or portion thereof) or other charge within thirty (30) days of the date when such
payment became due, and such failure continues thereafter for a period of thirty (30) days after
written notice from Frontier El Dorado.

     10.3 Effect of Termination.

          (a) Each Party shall use its reasonable commercial efforts to minimize any adverse effect to
the other Party resulting from the termination of the rendering, in whole or in part, of any SUMF
Item under this Agreement.

          (b) Within sixty (60) days after termination of this Agreement in whole, Frontier El Dorado
shall provide El Dorado Logistics with a final accounting of the amount of (i) any Annual Service
Fee and other applicable charges due with respect to the period beginning on January 1 of the
calendar year in which the termination occurred and ending on the effective date of the
termination; and (ii) any unpaid and undisputed Annual Service Fee and other applicable charges
attributable to the prior calendar year. If El Dorado Logistics agrees with the total amount shown
on the final accounting, El Dorado Logistics shall pay to Frontier El Dorado such amount within
thirty (30) days following the receipt of such final accounting. The Parties shall meet in good
faith to resolve any Dispute relating to the final accounting as expeditiously as possible.

          (c) Any termination of this Agreement, either in whole or in part, and termination of any
individual SUMF Item shall be without prejudice to the accrued rights, remedies and liabilities of
the Parties at the time of such termination and all provisions of this Agreement necessary for the
full enjoyment thereof shall survive termination for the period so necessary.

          (d) If there is a Dispute regarding the termination of this Agreement or a SUMF Item under
this Article 10, then no termination shall occur until thirty (30) days following resolution of the
Dispute or by written agreement of the Parties.

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ARTICLE 11

GENERAL PROVISIONS

     11.1 Force Majeure. In the event of El Dorado Logistics or Frontier El Dorado being
rendered unable, wholly or in part, by Force Majeure to carry out its obligations under this
Agreement, it is agreed that on such Party’s giving notice and full particulars of such Force
Majeure to the other Party as soon as practicable after the occurrence of the cause relied on, then
the obligations of the parties, so far as they are affected by such Force Majeure, shall be
suspended during the continuance of any inability so caused but for no longer period, and such
cause shall, as far as possible, be remedied with all reasonable dispatch. It is understood and
agreed that the settlement of strikes or lockouts shall be entirely within the discretion of the
Party having the difficulty, and that the above requirements that any Force Majeure shall be
remedied with all reasonable dispatch shall not require the settlement of strikes or lockouts by
acceding to the demands of the opposing party when such course is inadvisable in the discretion of
the Party having the difficulty. Notwithstanding anything in this Agreement to the contrary,
inability of a Party to make payments when due, be profitable or to secure funds, arrange bank
loans or other financing, obtain credit or have adequate capacity or production (other than for
reasons of Force Majeure) shall not be regarded as events of Force Majeure.

     11.2 Intellectual Property Rights. Neither this Agreement nor the performance by
either of the Parties of its duties hereunder shall operate to convey, license or otherwise
transfer from one Party to the other any patent, know-how, trade secrets or other intellectual
property rights. The copyright, property and any other rights in any document or material supplied
under this Agreement shall, in the absence of any express provision to the contrary thereon, remain
with the disclosing Party.

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

          Notices to Frontier El Dorado:

c/o HollyFrontier Corporation

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attn: President

Email address: president@hollyfrontier.com

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

giver proper notice, to:

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c/o HollyFrontier Corporation

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attn: General Counsel

Email address: generalcounsel@hollyfrontier.com

          Notices to El Dorado Logistics:

c/o Holly Energy Partners, L.P.

2828 N. Harwood, Suite 1300

Dallas, TX 75201

Attn: President

Email address: president@hollyenergy.com

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

give proper notice, to:

c/o Holly Energy Partners, L.P.

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attn: General Counsel

Email address: generalcounsel@hollyenergy.com

          Any Party may at any time change its address for service from time to time by giving notice to
the other Parties in accordance with this Section 11.3.

     11.4 Severability. If any term or other provision of this Agreement is invalid,
illegal or incapable of being enforced by any Law or public policy, all other terms and provisions
of this Agreement shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby is not affected in any manner materially
adverse to either Party hereto. Upon such determination that any term or other provision is
invalid, illegal, or incapable of being enforced, the Parties hereto shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the Parties as closely as possible
in an acceptable manner in order that the transactions contemplated hereby are consummated as
originally contemplated to the greatest extent possible.

     11.5 Entire Agreement. This Agreement constitutes the entire agreement of the Parties
hereto with respect to the subject matter hereof and supersedes all prior agreements and
undertakings, both written and oral, between the Parties hereto with respect to the subject matter
hereof.

     11.6 Waiver. To be effective, any waiver of any right under this Agreement must be in
writing and signed by a duly authorized officer or representative of the Party bound thereby.

     11.7 Incorporation by Reference. Any reference herein to any Exhibit to this
Agreement will incorporate such Exhibit herein as if it were set out in full in the text of this
Agreement.

- 15 -

 

     11.8 Succession and Assignment. This Agreement may be assigned in connection with,
and subject to the terms and conditions set forth in Section 13(b) of the Throughput Agreement,
which such terms and conditions are incorporated herein by reference. Notwithstanding anything to
the contrary herein or in the Throughput Agreement, Frontier El Dorado may engage third-party
contractors to perform any of the services or actions Frontier El Dorado is required to perform
hereunder without El Dorado Logistics’ prior consent.

     11.9 Binding Effect. This Agreement will be binding upon, and will inure to the
benefit of, the Parties and their respective successors, permitted assigns and legal
representatives.

     11.10 Amendment. This Agreement may not be amended or modified except by an
instrument in writing signed by, or on behalf of, each of the Parties hereto.

     11.11 No Third Party Beneficiaries. No Person not a Party to this Agreement will have
any rights under this Agreement as a third party beneficiary or otherwise.

     11.12 Governing Law. THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE
GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF KANSAS WITHOUT GIVING
EFFECT TO PRINCIPLES THEREOF RELATING TO CONFLICTS OF LAW RULES THAT WOULD DIRECT THE APPLICATION
OF THE LAWS OF ANOTHER JURISDICTION.

     11.13 Cooperation. The Parties acknowledge that they are entering into a long-term
arrangement in which the cooperation of both Parties will be required. If, during the Term of this
Agreement, changes in the operations, facilities or methods of either Party will materially benefit
a Party without detriment to the other Party, the Parties commit to each other to make reasonable
efforts to cooperate and assist each other.

     11.14 Further Assurances. The Parties shall execute such additional documents and
shall cause such additional actions to be taken as may be required or, in the judgment of any
Party, be necessary or desirable, to effect or evidence the provisions of this Agreement and the
transactions contemplated hereby.

     11.15 Recording. Upon the request of any Party, El Dorado Logistics and Frontier El
Dorado shall execute, acknowledge, deliver and record a “short form” memorandum of this Agreement.

     11.16 Conflicts Between Agreements. In the event a conflict between the terms and
conditions contained in the Throughput Agreement or the other Ancillary Agreements and this
Agreement arises in connection with any matter pertaining to the provision of the SUMF Items, the
terms and conditions contained in the Throughput Agreement will govern. Nothing contained in this
Agreement shall be deemed to limit or restrict El Dorado Logistics’ rights to fully use and enjoy
the rights and benefits it has under the Purchase Agreements or the other Ancillary Agreements.

- 16 -

 

     11.17 Counterparts. This Agreement may be executed in one or more counterparts, and
by the Parties hereto in separate counterparts, each of which when executed shall be deemed to be
an original but all of which taken together shall constitute one and the same agreement.

[Remainder of Page Intentionally Left Blank]

- 17 -

 

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly
authorized officers or representatives to be effective as of November 1, 2011.

	 	 	 	 	 	 	 	 	 

	 	 	Frontier El Dorado:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	FRONTIER EL DORADO REFINING LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 	 	 	 	Name: James M. Stump	 	 
	 	 	 	 	Title: Senior Vice President, Refinery Operations	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	El Dorado Logistics:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	EL DORADO LOGISTICS LLC,	 	 
	 	 	 	 	a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 	 	 	 	Name: Mark T. Cunningham	 	 
	 	 	 	 	Title: Vice President, Operations	 	 

Signature
Page –

Site Services Agreement (El Dorado)

 

 

EXHIBIT A

Frontier El Dorado will supply the services listed on this Exhibit A to El Dorado Logistics
with respect to El Dorado Logistics’ ownership, operation and maintenance of the Relevant Assets.
El Dorado Logistics will pay Frontier El Dorado the Annual Service Fee of $360,000 (such payment to
be made in monthly installments) for these services.

	 	•	 	Wastewater Processing — Provided that the Kansas Department of Health and Environment
(“KDHE”) does not object, all waste water treatment will be supplied to El Dorado Logistics
by Frontier El Dorado from existing Refinery Complex sources. This treatment pertains to
dock and sump materials generated during the normal course of operations and includes sump
generated waste materials. The Parties acknowledge that KDHE may impose pre-treatment
standards on any waste waters that El Dorado Logistics releases to Frontier El Dorado for
processing.
	 
	 	•	 	Fire Protection — Frontier El Dorado will provide response support in the event of an
emergency. Frontier El Dorado will maintain the existing tank farm fire water system and
any necessary improvements will be made by Frontier El Dorado.
	 
	 	•	 	Security — All security patrols, monitoring and surveillance will be provided to El
Dorado Logistics by Frontier El Dorado.
	 
	 	•	 	Utilities — All gas, water and steam will be furnished by Frontier El Dorado for
operation of all the Relevant Assets within the Refinery Complex.
	 
	 	•	 	Air Permit — Frontier El Dorado will retain the Relevant Assets on all applicable air
permits and will handle all agency reporting requirements. El Dorado Logistics will supply
field data to Frontier El Dorado necessary for Frontier El Dorado to fulfill its reporting
requirements.
	 
	 	•	 	Solid / Hazardous Waste Processing — Under the provisions of the Resource Conservation
and Recovery Act (RCRA) El Dorado Logistics and Frontier El Dorado will be co-generators of
any solid / hazardous wastes that may be generated by El Dorado Logistics at the contiguous
facility. Any such wastes shipped under a hazardous waste manifest will show Frontier El
Dorado as the generator. At the propane terminal located near the Refinery Complex, El
Dorado Logistics will be the sole generator.
	 
	 	•	 	Spill Prevention Control and Countermeasures (SPCC) Plan — Frontier El Dorado will
maintain a facility-wide SPCC plan clearly identifying those assets owned by both parties
and their resultant responsibilities.
	 
	 	•	 	IT Infrastructure — El Dorado Logistics will be entitled to access and use of all
necessary IT infrastructures for the operation of the Relevant Assets. Frontier El Dorado
will maintain all IT infrastructures.

Exhibit A - 1

 

	 	•	 	Office Space — Frontier El Dorado will furnish necessary office space for the employees
of El Dorado Logistics.
	 
	 	•	 	Parking —Frontier El Dorado will provide parking necessary for El Dorado Logistics’
employees’ personal vehicles, El Dorado Logistics’ company-owned vehicles, and auxiliary
maintenance equipment.
	 
	 	•	 	Maintenance, Warehouse Storage and Shop — Frontier El Dorado will provide all warehouse
storage necessary to store maintenance and spare part inventories for El Dorado Logistics’
exclusive use. These storage areas will be secured and controlled separate from Frontier
El Dorado’s warehouse operations.
	 
	 	•	 	Contract Maintenance Labor — Frontier El Dorado will provide maintenance labor to El
Dorado Logistics on an as-needed basis. Frontier El Dorado will charge El Dorado Logistics
an agreed hourly rate for the maintenance services.
	 
	 	•	 	Laydown Area — Frontier El Dorado will provide El Dorado Logistics an outdoor laydown
area for maintenance and project activities. The area will be separate from Frontier El
Dorado’s laydown area.
	 
	 	•	 	LDAR Monitoring and Reporting — Frontier El Dorado will provide to El Dorado Logistics
services necessary to perform leak monitoring on all Relevant Assets within the Refinery
Complex as required by any applicable consent decrees. Frontier El Dorado’s and El Dorado
Logistics’ employees will be included in the refinery LDAR training program. Frontier El
Dorado will provide data to El Dorado Logistics on all LDAR surveillance activities.
	 
	 	•	 	PSM — Frontier El Dorado will include all Relevant Assets in the PSM program and
procedures. Frontier El Dorado will provide all necessary PSM management and
administrative services. El Dorado Logistics will participate in all processes necessary
under PSM in order to maintain compliance.
	 
	 	•	 	Laboratory Services — Frontier El Dorado will provide all laboratory services necessary
for quality control, blending and regulatory activities. The services will include
analysis of samples from blend stocks, finished products and crude oils.
	 
	 	•	 	Telephones — Frontier El Dorado will provide all local and long distance telephone
(land line only) service.
	 
	 	•	 	Knock Engines —  Frontier El Dorado will provide all maintenance and calibration of the
knock engines.

Exhibit A - 2

 

EXHIBIT
I

Form of Cheyenne Lease and Access Agreement

 

 

EXHIBIT
J

Form of El Dorado Lease and Access Agreement

 

 

EXHIBIT
K

Form of Restated Omnibus Agreement

 

 

EXHIBIT L

Form of Subordinate Mortgages/Subordinate Security Agreement

 

 

[SUBJECT TO MODIFICATION TO COMPLY WITH APPLICABLE LOCAL LAW AND RECORDING REQUIREMENTS]

PREPARED BY AND WHEN

RECORDED RETURN TO:

____________________

____________________

____________________

____________________

NOTICE OF CONFIDENTIALITY RIGHTS: If you are a natural person, you may remove or strike
any or all of the following information from this
instrument in the public records: YOUR SOCIAL
SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER.

MORTGAGE AND DEED OF TRUST

(WITH SECURITY AGREEMENT AND FINANCING STATEMENT)

BY

                    ,

A                     

AS GRANTOR

TO

                    ,

AS TRUSTEE

FOR THE BENEFIT OF

                    ,

A                     

AS BENEFICIARY

DATED EFFECTIVE AS OF __________ ___, 201__

THIS INSTRUMENT GRANTS A SECURITY INTEREST BY A TRANSMITTING UTILITY.

THIS INSTRUMENT COVERS GOODS THAT ARE OR ARE TO BECOME FIXTURES ON THE REAL PROPERTY DESCRIBED
HEREIN AND IS TO BE FILED FOR RECORD IN THE RECORDS WHERE MORTGAGES ON REAL ESTATE ARE RECORDED.
ADDITIONALLY, THIS INSTRUMENT SHOULD BE APPROPRIATELY INDEXED, NOT ONLY AS A MORTGAGE, BUT ALSO AS
A FINANCING STATEMENT COVERING GOODS THAT ARE OR ARE TO BECOME FIXTURES ON THE REAL PROPERTY
DESCRIBED HEREIN. THE MAILING ADDRESSES OF THE GRANTOR (DEBTOR) AND BENEFICIARY (BENEFICIARY) ARE
SET FORTH IN THIS INSTRUMENT.

 

 

MORTGAGE AND DEED OF TRUST

(WITH SECURITY AGREEMENT AND FINANCING STATEMENT)

     This MORTGAGE AND DEED OF TRUST (WITH SECURITY AGREEMENT AND FINANCING STATEMENT) (hereinafter
referred to as this “Deed of Trust”), is entered into effective as of the _____ day of
__________, 201__, by ____________________, a ____________________ (“Grantor”), having an
address for notice at ____________________, to ____________________, Trustee (hereinafter referred
to in such capacity as “Trustee”), whose address is ____________________, for the benefit
of the herein below defined Beneficiary.

W I T N E S S E T H:

ARTICLE 1

DEFINITIONS

	1.1	 	Definitions. As used herein, the following terms shall have the following meanings:

(a) Asset Leases. All leases of real property now or hereafter entered into or
acquired by Grantor on which all or a part of the Assets are located, including, without
limitation, the leases described on Exhibit B, if any.

(b) Assets. The pipelines, storage tanks, loading and/or unloading racks, and other
assets described on Exhibit A.

(c) Affiliate: With respect to a specified Person, any other Person controlling,
controlled by or under common control with that first Person. As used in this definition,
the term “control” includes (i) with respect to any Person having voting shares or the
equivalent and elected directors, managers or Persons performing similar functions, the
ownership of or power to vote, directly or indirectly, shares or the equivalent representing
more than 50% of the power to vote in the election of directors, managers or Persons
performing similar functions, (ii) ownership of more than 50% of the equity or equivalent
interest in any Person and (iii) the ability to direct the business and affairs of any
Person by acting as a general partner, manager or otherwise.

(d) Beneficiary: ____________________,
a ____________________ whose address for
notice hereunder is ___________________.

(e) Contracts: The contracts, agreements, leases and other legally binding rights
and obligations of Grantor, to the extent such contracts, agreements, leases or other
legally binding rights or obligations cover, include or relate to all or any portion of the
Real Property or the Assets, if any, but excluding those contracts and agreements
constituting Leases and Easements.

(f) Deed of Trust: Shall have the meaning set forth in the introductory paragraph
hereof.

1

 

(g) Easements: All easements, rights-of-way, property use agreements, line rights
and real property licenses required to operate the Assets now or hereafter entered into or
acquired by Grantor, including, without limitation, the easements, rights-of-way, property
use agreements, line rights and real property licenses described on Exhibit B, if
any.

(h) Equipment. To the extent same do not constitute Improvements, any and all
fittings, cathodic protection ground beds, rectifiers, other cathodic or electric protection
devices, tanks, machinery, engines, pipes, pipelines, valves, valve boxes, connections,
gates, scraper trap extenders, telecommunication facilities and equipment (including
microwave and other transmission towers), lines, wires, computer hardware, fixed or mobile
machinery and equipment, vehicle refueling tanks, pumps, heating and non-pipeline pumping
stations, fittings, tools, furniture and metering equipment now owned or hereafter acquired
by Grantor.

(i) Event of Default: Any happening or occurrence described in Article 7 of this
Deed of Trust.

(j) Fee Land. All parcels of fee simple real property now or hereafter owned by
Grantor on which any part of the Assets are located including, without limitation, the
property held in fee by Grantor described on Exhibit B, if any

(k) Fixtures: All materials, supplies, equipment, apparatus and other items now or
hereafter acquired by Grantor and now or hereafter attached to, installed in or used in
connection with (temporarily or permanently) the Real Property or the Assets, together with
all accessions, replacements, betterments and substitutions for any of the foregoing and the
proceeds thereof.

(l) Governmental Entity: Any court, governmental department, commission, council,
board, bureau, agency or other judicial, administrative, regulatory, legislative or other
instrumentality of the United States of America or any foreign country, or any state,
county, municipality or local governmental body or political subdivision or any such other
foreign country.

(m) Grantor: The above defined Grantor, whether one or more, and any and all
subsequent owners of the Mortgaged Property or any part thereof.

(n) Impositions: All real estate and personal property taxes; water, gas, sewer,
electricity and other utility rates and charges; charges for any easement, license or
agreement maintained for the benefit of the Mortgaged Property; and all other taxes, charges
and assessments and any interest, costs or penalties with respect thereto, general and
special, ordinary and extraordinary, foreseen and unforeseen, of any kind and nature
whatsoever which at any time prior to or after the execution hereof may be assessed, levied
or imposed upon the Mortgaged Property or the ownership, use, occupancy or enjoyment
thereof.

(o) Improvements: All structures, fixtures and appurtenances located on the Real
Property, and now or hereafter owned by Grantor, including, without limitation, the

2

 

Assets (to the extent the same constitute structures, fixtures or appurtenances located on
the Real Property and are now or hereafter owned by Grantor).

(p) Leases: Any and all leases, subleases, licenses, concessions or other
agreements (written or verbal, now or hereafter in effect) which grant a possessory interest
in and to, or the right to use, the Mortgaged Property, and all other agreements, such as
utility contracts, maintenance agreements and service contracts, which in any way relate to
the use, occupancy, operation, maintenance, enjoyment or ownership of the Mortgaged
Property, save and except any and all Asset Leases and any other leases, subleases or other
agreements pursuant to which Grantor is granted a possessory interest in the Real Property.

(q) Legal Requirements: (i) Any and all laws, statutes, codes, rules, regulations,
ordinances, judgments, orders, writs, decrees, requirements or determinations of any
Governmental Entity, and (ii) to the extent not covered by clause (i) immediately above, any
and all requirements of permits, licenses, certificates, authorizations, concessions,
franchises or other approvals granted by any Governmental Entity.

(r) Mortgaged Property: The Subject Property, together with:

(i) all rights, privileges, tenements, hereditaments, rights-of-way, easements,
appendages and appurtenances in anywise appertaining thereto, and all right, title
and interest of Grantor in and to any streets, ways, alleys, strips or gores of land
adjoining the Real Property or any part thereof; and

(ii) all betterments, additions, alterations, appurtenances, substitutions,
replacements and revisions thereof and thereto and all reversions and remainders
therein; and

(iii) all other property and rights of Grantor of every kind and character to the
extent specifically relating to and used or to be used solely in connection with the
foregoing property, and all proceeds and products of any of the foregoing.

As used in this Deed of Trust, the term “Mortgaged Property” shall be expressly
defined as meaning all or, where the context permits or requires, any portion of the above,
and all or, where the context permits or requires, any interest therein. Notwithstanding
anything to the contrary herein, in no event shall the term “Mortgaged Property”
include any Product owned by third parties that may be shipped through or stored at or in
any of the Mortgaged Property.

(s) Obligations: Shall have the meaning given such term in Section 2.1.

(t) Permits: All permits, licenses, certificates, authorizations, registrations,
orders, waivers, variances and approvals now or hereafter granted by any Governmental Entity
to Grantor or its predecessors in interest pertaining solely to the ownership or operation
of the Assets, including, without limitation, right-of-way permits from railroads and road
crossing permits or other right-of-way permits from Governmental Entities, in each case to
the extent the same are assignable.

3

 

(u) Permitted Encumbrances: Any of the following matters:

(i) any (A) inchoate liens, security interests or similar charges constituting or
securing the payment of expenses which were incurred incidental to the ownership and
operation of the Assets (collectively, the “Operations”) or the operation,
storage, transportation, shipment, handling, repair, construction, improvement or
maintenance of the Mortgaged Property, and (B) materialman’s, mechanics’,
repairman’s, employees’, contractors’, operators’, warehousemen’s, barge or ship
owner’s and carriers’ liens or other similar liens, security interests or charges
for liquidated amounts arising in the ordinary course of business incidental to the
conduct of the Operations or the ownership and operation of the Mortgaged Property,
securing amounts the payment of which is not delinquent and that will be paid in the
ordinary course of business or, if delinquent, that are being contested in good
faith with any action or proceeding to foreclose or attach any of the Mortgaged
Property on account thereof properly stayed; (ii) any liens or security interests
for Taxes not yet delinquent or, if delinquent, that are being contested in good
faith in the ordinary course of business with any action or proceeding to foreclose
or attach any of the Mortgaged Property on account thereof properly stayed; (iii)
any liens or security interests reserved in leases, rights of way or other real
property interests for rental or for compliance with the terms of such leases,
rights of way or other real property interests, provided payment of the debt secured
is not delinquent or, if delinquent, is being contested in good faith in the
ordinary course of business with any action or proceeding to foreclose or attach any
of the Mortgaged Property on account thereof properly stayed; (iv) all prior
reservations of minerals in and under or that may be produced from any of the lands
constituting part of the Mortgaged Property or on which any part of the Mortgaged
Property is located; (v) all liens (other than liens for borrowed money), security
interests, charges, easements, restrictive covenants, encumbrances, contracts,
instruments, obligations, discrepancies, conflicts, shortages in area or boundary
lines, encroachments or protrusions, or overlapping of improvements, defects,
irregularities and other matters affecting or encumbering title to the Mortgaged
Property which individually or in the aggregate are not such as to unreasonably or
materially interfere with or prevent any material operations conducted on the
Mortgaged Property; (vi) rights reserved to or vested in any Governmental Entity to
control or regulate any of the Mortgaged Property or the Operations and all Legal
Requirements of such authorities, including any building or zoning ordinances and
all environmental laws; (vii) any contract, easement, instrument, lien, security
instrument, permit, amendment, extension or other matter entered into by a party in
accordance with the terms of the Purchase Agreement (as hereinafter defined) or in
compliance with the approvals or directives of the other parties made pursuant to
such Purchase Agreement; (viii) all Post-Closing Consents (as defined in the
Purchase Agreement or any instrument securing the Senior Bank Liens); (ix) defects
in the early chain of the title consisting of the mere failure to recite marital
status in a document or omissions of successions of heirship proceedings, unless
such failure or omission results in another Person’s superior claim of title to the
Easements or relevant portion thereof; (x) any assertion of a defect based on a lack
of a survey

4

 

with respect to the Assets; (xi) any title defect affecting (or the termination or
expiration of) any easement, right of way, leasehold interest or fee interest
affecting all or any portion of the Real Property which has been replaced prior to
the date of this Deed of Trust by an easement, right of way, leasehold interest or
fee interest covering substantially the same land or the portion thereof used by
Beneficiary or its Affiliates; and (xii) all Senior Liens.

(v) Person: An individual, a corporation, a partnership, a limited liability
company, an association, a trust, or any other entity or organization, including, without
limitation, any Governmental Entity.

(w) Personalty: The Equipment and all other personal property (other than the
Fixtures) and intangible assets of any kind or character as defined in and subject to the
provisions of the Uniform Commercial Code Article 9 — Secured Transactions, as the same is
codified and in effect in __________, which are now or hereafter located or to be located
upon, within or about the Real Property, or which are or may be used in or related to the
planning, development, financing or operation of the Mortgaged Property, together with all
accessories, replacements and substitutions thereto or therefor and the proceeds thereof.

(x) Product: Crude oil, gas oil, diesel, kerosene, casinghead, naphtha, normal
butane and isobutane transported through or stored in or at the Assets.

(y) Purchase Agreement: That certain ____________________dated as of
__________________,
201__, between ____________________and
___________________.

(z) Real Property: Collectively, the Fee Land, the real property subject to the
Asset Leases, the real property subject to the Easements, and any Improvements now or
hereafter located on any of the foregoing.

(aa) Records: All records and documents now or hereafter acquired by Grantor
relating solely to the ownership, condition or operation of the Subject Property.

(bb) Security Documents: This Deed of Trust and any and all other documents now or
hereafter executed by Grantor or any other Person to evidence or secure the performance of
the Obligations.

(cc) Senior Bank Liens: Collectively, (i) each lien and security interest in all or
any portion of the Mortgaged Property heretofor or hereafter granted by Grantor or its
Affiliates under the Senior Credit Agreement, and (ii) each lien and security interest in
all or any portion of the Mortgaged Property hereafter granted by any Person who acquires an
interest in all or any portion of the Mortgaged Property securing senior debt of such
Person.

(dd) Senior Lien: Collectively, the Senior Bank Liens and each other lien and
security interest as to which the lien and security interest granted pursuant to this Deed
of Trust shall be subordinated thereto pursuant to the terms of a Subordination,
Non-Disturbance

5

 

and Attornment Agreement in substantially the form of Attachment 1 hereto executed by the
Beneficiary and the holder of such lien and security interest and recorded in the real
property records of ___________________.

(ee) Subject Property: All of the following assets, properties and rights, whether
real, personal or mixed, which are owned or held for use by Grantor solely in connection
with the ownership or operation of the Assets:

	 	(i)	 	The Assets;
	 
	 	(ii)	 	The Fee Land;
	 
	 	(iii)	 	The Asset Leases;
	 
	 	(iv)	 	The Easements;
	 
	 	(v)	 	The Improvements;
	 
	 	(vi)	 	The Equipment;
	 
	 	(vii)	 	The Contracts;
	 
	 	(viii)	 	Intellectual property rights and related computer software;
	 
	 	(ix)	 	The Permits; and
	 
	 	(x)	 	The Records.

(ff) Taxes: Any and all federal, state, local, foreign and other net income, gross
income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, license,
leases, service, service use, withholding, payroll, employment, excise, severance, stamp,
occupation, premium, property, windfall profits, customs, duties or other taxes, fees, or
assessments.

(gg) Throughput Agreement: Subject to Section 11.20, that certain
____________________
dated as of ____________________,
201__, by and between
____________________ and
____________________,
as such agreement has been amended to date or
may be amended, amended and restated, replaced, or otherwise modified at any time in the future.

(hh) UCC. The Uniform Commercial Code, as codified and in effect in the State of
_________.

ARTICLE 2

GRANT

	2.1	 	Grant To secure and enforce the prompt performance and compliance by
____________________ of all obligations set forth for such Persons in the Throughput

6

 

	 	 	Agreement, plus all claims (as such term is defined in the Bankruptcy Code) of or damages
owed to the Beneficiary against ____________________ and/or the Mortgaged Property resulting
from any rejection of the Throughput Agreement by any such Person in any bankruptcy or
insolvency proceeding involving ____________________, and any reasonable costs and expenses
(including, but not limited to, attorneys’ and experts’ fees and court costs) incurred by
Beneficiary in enforcing and exercising its rights hereunder (collectively, the
“Obligations”), Grantor has GRANTED, BARGAINED, SOLD and CONVEYED, and by these
presents does GRANT, BARGAIN, SELL and CONVEY, unto Trustee the Mortgaged Property,
subject, however, to the Permitted Encumbrances, TO HAVE AND TO HOLD the Mortgaged
Property unto Trustee, forever, and Grantor does hereby bind itself, its successors and
assigns to WARRANT AND FOREVER DEFEND the title to the Mortgaged Property unto Trustee
against every Person whomsoever lawfully claiming or to claim the same or any part thereof
other than against any holder of any Senior Lien; provided, however, that this grant shall
terminate upon the full performance and discharge of all of the Obligations and in
accordance with the other terms set forth herein.

	2.2	 	Maximum Secured Indebtedness. THE OUTSTANDING INDEBTEDNESS SECURED BY PROPERTY
LOCATED IN __________ SHALL NOT AT ANY ONE TIME EXCEED THE AGGREGATE MAXIMUM AMOUNT OF
$__________, WHICH SHALL CONSTITUTE THE MAXIMUM AMOUNT AT ANY TIME SECURED HEREBY.

ARTICLE 3

WARRANTIES AND REPRESENTATIONS

	 	 	Grantor hereby unconditionally warrants and represents to Beneficiary as follows:
	 
	3.1	 	Organization and Power. Grantor is a ____________________ duly organized, validly
existing and in good standing under the laws of the State of __________, has complied with all
conditions prerequisite to its doing business in the State of __________, and has all
requisite power and all governmental certificates of authority, licenses, permits,
qualifications and documentation to own, lease and operate its properties and to carry on its
business as now being, and as proposed to be, conducted.
	 
	3.2	 	Validity of Security Documents. The execution, delivery and performance by Grantor
of the Security Documents (a) are within Grantor’s powers and have been duly authorized by
Grantor’s general partner, sole member or other necessary parties, and all other requisite
action for such authorization has been taken; (b) have received all (if any) requisite prior
governmental approval in order to be legally binding and enforceable in accordance with the
terms thereof; and (c) will not violate, be in conflict with, result in a breach of or
constitute (with due notice or lapse of time, or both) a default under, any Legal Requirement
or result in the creation or imposition of any lien, charge or encumbrance of any nature
whatsoever upon any of Grantor’s property or assets, except as contemplated by the provisions
of the Security Documents. The Security Documents

7

 

	 	 	constitute the legal, valid and binding obligations of Grantor and others obligated under
the terms of the Security Documents, in accordance with their respective terms.

	3.3	 	Lien of this Instrument. Subject to the Senior Liens, this Deed of Trust constitutes
a valid and subsisting mortgage and deed of trust lien on the Real Property and the Fixtures
and a valid, subsisting security interest in and to, and a valid assignment of, the Personalty
and Leases, all in accordance with the terms hereof.
	 
	3.4	 	Litigation. There are no actions, suits or proceedings pending, or to the knowledge
of Grantor threatened, against or affecting the Grantor as a result of or in connection with
Grantor’s entering into this Deed of Trust, or involving the validity or enforceability of
this Deed of Trust or the priority of the liens and security interests created by the Security
Documents, and no event has occurred (including specifically Grantor’s execution of the
Security Documents) which will violate, be in conflict with, result in the breach of, or
constitute (with due notice or lapse of time, or both) a default under, any Legal Requirement
or result in the creation or imposition of any lien, charge or encumbrance of any nature
whatsoever upon any of Grantor’s property other than the liens and security interests created
by the Security Documents.

ARTICLE 4

AFFIRMATIVE COVENANTS OF GRANTOR

     Grantor hereby unconditionally covenants and agrees with Beneficiary that, except for the
Permitted Encumbrances, Grantor will protect the lien and security interest status of this Deed of
Trust and except for the Permitted Encumbrances, will not, without the prior written consent of
Beneficiary, place, or permit to be placed, or otherwise mortgage, hypothecate or encumber the
Mortgaged Property with, any other lien or security interest of any nature whatsoever (statutory,
constitutional or contractual) regardless of whether same is allegedly or expressly inferior to the
lien and security interest created by this Deed of Trust, and, if any such lien or security
interest is asserted against the Mortgaged Property, Grantor will promptly, at its own cost and
expense, (a) pay the underlying claim in full or take such other action so as to cause same to be
released and (b) within five days from the date such lien or security interest is so asserted, give
Beneficiary notice of such lien or security interest. Such notice shall specify who is asserting
such lien or security interest and shall detail the origin and nature of the underlying claim
giving rise to such asserted lien or security interest.

ARTICLE 5

NEGATIVE COVENANTS OF GRANTOR

     Grantor hereby covenants and agrees with Beneficiary that, until the full performance and
discharge of all of the Obligations, Grantor will not, without the prior written consent of
Beneficiary, create, place or permit to be created or placed, or through any act or failure to act,
acquiesce in the placing of, or allow to remain, any mortgage, pledge, lien (statutory,
constitutional or contractual), security interest, encumbrance or charge on, or conditional sale or
other title retention agreement, regardless of whether same are expressly subordinate to the liens

8

 

of the Security Documents, with respect to, the Mortgaged Property, other than the Permitted
Encumbrances.

ARTICLE 6

AFFIRMATIVE COVENANTS OF BENEFICIARY

     By its acceptance hereof, Beneficiary recognizes that (a) Grantor is obligated or may
hereafter become obligated to any of the Credit Parties (as defined in the SNDA [defined below]) in
connection with the Senior Credit Agreement, and (b) Grantor and any future owner of the Mortgaged
Property may incur additional indebtedness or become otherwise obligated to one or more banks,
insurance companies, investment banks or other financial institutions regularly engaged in
commercial lending and/or bonds, debentures, notes and similar instruments evidencing obligations
that may be secured by liens or security interests on some or all of Grantor’s property, including
the Mortgaged Property (the holder of such liens or security interests being a “Secured
Lender”). To the extent that any such Secured Lender notifies Beneficiary of Secured Lender’s
desire to subordinate the lien and security interest held by Beneficiary pursuant to this Deed of
Trust, Beneficiary, by its acceptance hereof, will agree to effect such subordination by promptly
executing, in one or more counterparts, a Subordination, Non-Disturbance and Attornment Agreement
in substantially the form of Attachment 1 hereto (the “SNDA”). The subordination of this
Deed of Trust shall (i) not be effective unless and until the SNDA has been executed by the Secured
Lender, and (ii) be subject to compliance by the Secured Lender with its obligations under Section
3 and Section 4 of the SNDA. Any Secured Lender who is a party to an SNDA and who is in compliance
with its obligations under Section 3 and Section 4 of such SNDA is hereinafter referred to as a
“Lienholder.”

ARTICLE 7

EVENTS OF DEFAULT

     The term “Event of Default”, as used in the Security Documents, shall mean the
occurrence or happening, at any time and from time to time, of any one or more of the following:

	7.1	 	Breach of Deed of Trust. (a) Grantor shall (i) fail to perform or observe, in any
material respect, any covenant, condition or agreement of this Deed of Trust to be performed
or observed by Grantor, or (ii) breach any warranty or representation made by Grantor in this
Deed of Trust, and such failure or breach shall continue unremedied for a period of thirty
(30) days after receipt of written notice thereof to the Grantor from the Beneficiary;
provided, however, that in the event such failure or breach cannot be reasonably cured within
such thirty (30) day period and Grantor has diligently proceeded (and continues to proceed) to
cure such breach, Grantor shall have an additional sixty (60) days to cure such failure or
breach, or (b) ____________________ shall fail to perform all of the Obligations in full and
on or before the dates same are to be performed (after giving effect to any applicable grace
and cure periods).
	 
	7.2	 	Voluntary Bankruptcy. Grantor shall (a) voluntarily be adjudicated a bankrupt or
insolvent, (b) procure, permit or suffer the voluntary or involuntary appointment of a

9

 

	 	 	receiver, trustee or liquidator for itself or for all or any substantial portion of its
property, (c) file any petition seeking a discharge, rearrangement, or reorganization of its
debts pursuant to the bankruptcy laws or any other debtor relief laws of the United States
or any state or any other competent jurisdiction, or (d) make a general assignment for the
benefit of its creditors.

	7.3	 	Involuntary Bankruptcy. If (a) a petition is filed against Grantor seeking to
rearrange, reorganize or extinguish its debts under the provisions of any bankruptcy or other
debtor relief law of the United States or any state or other competent jurisdiction, and such
petition is not dismissed or withdrawn within sixty (60) days after its filing, or (b) a court
of competent jurisdiction enters an order, judgment or decree appointing, without the consent
of Grantor a receiver or trustee for it, or for all or any part of its property, and such
order, judgment, or decree is not dismissed, withdrawn or reversed within sixty (60) days
after the date of entry of such order, judgment or decree.
	 
	7.4	 	Rejection of Throughput Agreement. A rejection, by or on behalf of Grantor or
____________________, of the Throughput Agreement in bankruptcy.

ARTICLE 8

REMEDIES

	8.1	 	Remedies. Subject, in each case, to the rights of any Lienholder arising under or
pursuant to the Senior Liens, and the terms and provisions of the SNDA, and provided no
material default by ____________________ has occurred and is continuing, if an Event of
Default shall occur and be continuing, Beneficiary may, at Beneficiary’s election and by or
through Trustee or otherwise, exercise any or all of the following rights, remedies and
recourses:

(a) Entry Upon Mortgaged Property. Enter upon the Mortgaged Property and take
exclusive possession thereof and of all books, records and accounts relating thereto. If
Grantor remains in possession of all or any part of the Mortgaged Property after an Event of
Default and without Beneficiary’s prior written consent thereto, Beneficiary may invoke any
and all legal remedies to dispossess Grantor, including specifically one or more actions for
forcible entry and detainer, trespass to try title and writ of restitution. Nothing
contained in the foregoing sentence shall, however, be construed to impose any greater
obligation or any prerequisites to acquiring possession of the Mortgaged Property after an
Event of Default than would have existed in the absence of such sentence.

(b) Operation of Mortgaged Property. Hold, lease, manage, operate or otherwise use
or permit the use of the Mortgaged Property, either itself or by other Persons, firms or
entities, in such manner, for such time and upon such other terms as Beneficiary may deem to
be prudent and reasonable under the circumstances (making such repairs, alterations,
additions and improvements thereto and taking any and all other action with reference
thereto, from time to time, as Beneficiary shall deem necessary or desirable), and apply all
amounts collected by Trustee or Beneficiary in connection therewith in accordance with the
provisions of Section 8.7.

10

 

(c) Trustee or Receiver. Prior to, upon or at any time after, commencement of any
legal proceedings hereunder, make application to a court of competent jurisdiction as a
matter of strict right and without notice to Grantor or regard to the adequacy of the
Mortgaged Property for the satisfaction of the Obligations for appointment of a receiver of
the Mortgaged Property, and Grantor does hereby irrevocably consent to such appointment.
Any such receiver shall have all the usual powers and duties of receivers in similar cases,
including the full power to rent, maintain and otherwise operate the Mortgaged Property upon
such terms as may be approved by the court.

(d) Foreclosure and Sale. Sell or offer for sale the Mortgaged Property, in such
portions, order and parcels as Beneficiary may determine, with or without having first taken
possession of same, to the highest bidder, for cash, at public auction. Such sale and
notice thereof shall be made (i) in accordance with the then applicable provisions of
Section __________ of the ____________________ (or any successor statute), or (ii) by
accomplishing all or any of the aforesaid in such manner as permitted or required by
__________ of the ____________________ or by Chapter 9 of the UCC relating to the sale of
collateral after default by a debtor (as such laws now exist or may be hereafter amended or
succeeded), or by any other present or subsequent amendments or enactments relating to same.
If the Mortgaged Property is situated in more than one county, all required notices shall
be given in each such county, and such notices shall designate the county in which the
Mortgaged Property will be sold. The affidavit of any person having knowledge of the facts
to the effect that notice was properly given shall be prima facie evidence of such fact. At
any such sale (A) whether made under the power herein contained, the aforesaid
____________________, the UCC, any other requirement of applicable law or governmental
regulation or by virtue of any judicial proceedings or any other legal right, remedy or
recourse, it shall not be necessary for Trustee to have been physically present, or to have
constructive possession of, the Mortgaged Property (Grantor hereby covenanting and agreeing
to deliver to Trustee any portion of the Mortgaged Property not actually or constructively
possessed by Trustee immediately upon demand by Trustee), and the title to and right of
possession of any such property shall pass to the purchaser thereof as completely as if the
same had been actually present and delivered to the purchaser at such sale, (B) each
instrument of conveyance executed by Trustee shall contain a general warranty of title,
binding upon Grantor, (C) each and every recital contained in any instrument of conveyance
made by Trustee shall be prima facie evidence of the truth and accuracy of the matters
recited therein, including, without limitation, non-payment of the Obligations,
advertisement and conduct of such sale in the manner provided therein and otherwise by law,
and appointment of any successor Trustee hereunder, (D) any and all prerequisites to the
validity thereof shall be conclusively presumed to have been performed, (E) the receipt of
Trustee or of such other party or officer making the sale shall be a sufficient discharge to
the purchaser or purchasers for his or their purchase money, and no such purchaser or
purchasers, or his or their assigns or personal representatives, shall thereafter be
obligated to see to the application of such purchase money or be in any way answerable for
any loss, misapplication or non-application thereof, (F) to the fullest extent permitted by
law, Grantor shall be completely and irrevocably divested of all of its right, title,
interest, claim and demand whatsoever, either at law or in equity, in and to the Mortgaged
Property sold, and such sale shall be a perpetual bar, both at law and in equity, against
Grantor and against any and all other

11

 

persons claiming or to claim the Mortgaged Property sold or any part thereof, by, through or
under Grantor, and (G) to the extent and under such circumstances as are permitted by law,
Beneficiary and any entity related by ownership or control to Beneficiary may be a purchaser
at any such sale.

(e) Other. Exercise any and all other rights, remedies and recourses granted under
this Deed of Trust.

	8.2	 	Remedies Cumulative, Concurrent and Nonexclusive. Beneficiary shall have all rights,
remedies and recourses granted in the Throughput Agreement and, subject to the rights of any
Lienholder arising under or pursuant to the Senior Liens, and the terms and provisions of the
SNDA, the Deed of Trust and same (a) shall be cumulative and concurrent; (b) may be pursued
separately, successively or concurrently against Grantor or others obligated under this Deed
of Trust, or against the Mortgaged Property, or against any one or more of them, at the sole
discretion of Beneficiary; (c) may be exercised as often as occasion therefor shall arise, it
being agreed by Grantor that the exercise or failure to exercise any of same shall in no event
be construed as a waiver or release thereof or of any other right, remedy or recourse; and (d)
are intended to be, and shall be, nonexclusive.
	 
	8.3	 	Obligations. Neither Grantor, ____________________, nor any other Person hereafter
obligated for performance or fulfillment of all or any of the Obligations shall be relieved of
such obligation by reason of (a) the failure of Trustee to comply with any request of Grantor
or any other Person to enforce any provisions of this Deed of Trust; (b) the release,
regardless of consideration, of the Mortgaged Property or the addition of any other property
to the Mortgaged Property; (c) any agreement or stipulation between any subsequent owner of
the Mortgaged Property and Beneficiary extending, renewing, rearranging or in any other way
modifying the terms of the Security Documents without first having obtained the consent of,
given notice to or paid any consideration to Grantor or such other Person, and in such event
Grantor and all such other Persons shall continue to be liable to make payment according to
the terms of any such extension or modification agreement unless expressly released and
discharged in writing by Beneficiary; or (d) by any other act or occurrence save and except
the complete fulfillment of all of the Obligations.
	 
	8.4	 	Release of and Resort to Collateral. Beneficiary may release, regardless of
consideration, any part of the Mortgaged Property without, as to the remainder, in any way
impairing, affecting, subordinating or releasing the lien or security interest created in or
evidenced by this Deed of Trust or their stature as a lien and security interest in and to the
Mortgaged Property.
	 
	8.5	 	Waiver of Redemption, Notice and Marshalling of Assets. To the fullest extent
permitted by law, Grantor hereby irrevocably and unconditionally waives and releases (a) all
benefits that might accrue to Grantor by virtue of any present or future law exempting the
Mortgaged Property from attachment, levy or sale on execution or providing for any
appraisement, valuation, stay of execution, exemption from civil process, redemption or
extension of time for payment; (b) all notices of any Event of Default or of Trustee’s

12

 

	 	 	election to exercise or his actual exercise of any right, remedy or recourse provided for
under this Deed of Trust; and (c) any right to a marshalling of assets or a sale in inverse
order of alienation.

	8.6	 	Discontinuance of Proceedings. In case Beneficiary shall have proceeded to invoke
any right, remedy or recourse permitted under this Deed of Trust and shall thereafter elect to
discontinue or abandon same for any reason, Beneficiary shall have the unqualified right so to
do and, in such an event, Grantor and Beneficiary shall be restored to their former positions
with respect to the Obligations, the Security Documents, the Mortgaged Property and otherwise,
and the rights, remedies, recourses and powers of Beneficiary shall continue as if same had
never been invoked.
	 
	8.7	 	Application of Proceeds. Subject, in each case, to applicable law and the rights of
any Lienholder arising under or pursuant to the Senior Liens, and the terms and provisions of
the SNDA (including, without limitation, the right to receive payments otherwise due to
____________________ under the terms of the Throughput Agreement), the proceeds and other
amounts generated by the holding, operating or other use of, the Mortgaged Property shall be
applied by Trustee or Beneficiary (or the receiver, if one is appointed) to the extent that
funds are so available therefrom in the following orders of priority:

(a) first, to the payment of the costs and expenses of taking possession of the Mortgaged
Property and of holding, using, leasing, repairing and improving the same, including without
limitation (i) trustees’ and receivers’ fees, (ii) court costs, (iii) attorneys’ and
accountants’ fees, and (iv) the payment of any and all Impositions, liens, security
interests or other rights, titles or interests equal or superior to the lien and security
interest of this Deed of Trust (except those to which the Mortgaged Property has been sold
subject to and without in any way implying Beneficiary’s prior consent to the creation
thereof);

(b) second, to the payment of all amounts which may be due to Beneficiary with respect to
the Obligations;

(c) third, to the extent permitted by law, funds are available therefor out of the proceeds
generated by the holding, operating or other use of the Mortgaged Property and known by
Beneficiary, to the payment of any indebtedness or obligation secured by a subordinate deed
of trust on or security interest in the Mortgaged Property; and

(d) fourth, to Grantor.

	8.8	 	INDEMNITY. IN CONNECTION WITH ANY ACTION TAKEN BY TRUSTEE AND/OR BENEFICIARY
PURSUANT TO THIS DEED OF TRUST, TRUSTEE AND/OR BENEFICIARY AND THEIR RESPECTIVE OFFICERS,
DIRECTORS, SHAREHOLDERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS, REPRESENTATIVES, ATTORNEYS,
ACCOUNTANTS AND EXPERTS (COLLECTIVELY THE “INDEMNIFIED PARTIES”) SHALL NOT BE LIABLE FOR ANY
LOSS SUSTAINED BY GRANTOR RESULTING FROM (i) AN ASSERTION THAT TRUSTEE, BENEFICIARY OR
INDEMNIFIED PARTY

13

 

	 	 	HAS RECEIVED FUNDS FROM THE OPERATIONS OF THE MORTGAGED PROPERTY CLAIMED BY THIRD PERSONS OR
(ii) ANY ACT OR OMISSION OF TRUSTEE, BENEFICIARY OR INDEMNIFIED PARTY IN ADMINISTERING,
MANAGING, OPERATING OR CONTROLLING THE MORTGAGED PROPERTY, INCLUDING IN EITHER CASE SUCH
LOSS WHICH MAY RESULT FROM THE ORDINARY NEGLIGENCE OF TRUSTEE, BENEFICIARY OR AN INDEMNIFIED
PARTY OR WHICH MAY RESULT FROM STRICT LIABILITY, WHETHER UNDER APPLICABLE LAW OR OTHERWISE,
UNLESS SUCH LOSS IS CAUSED BY THE GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR BAD FAITH OF
TRUSTEE, BENEFICIARY OR ANY INDEMNIFIED PARTY NOR SHALL TRUSTEE, BENEFICIARY AND/OR ANY
INDEMNIFIED PARTY BE OBLIGATED TO PERFORM OR DISCHARGE ANY OBLIGATION, DUTY OR LIABILITY OF
GRANTOR. GRANTOR SHALL AND DOES HEREBY AGREE TO INDEMNIFY TRUSTEE, BENEFICIARY AND EACH OF
THEIR RESPECTIVE INDEMNIFIED PARTIES FOR, AND TO HOLD THEM HARMLESS FROM, ANY AND ALL LOSSES
WHICH MAY OR MIGHT BE INCURRED BY TRUSTEE, BENEFICIARY OR INDEMNIFIED PARTY BY REASON OF
THIS DEED OF TRUST OR THE EXERCISE OF RIGHTS OR REMEDIES HEREUNDER, INCLUDING SUCH LOSSES
WHICH MAY RESULT FROM THE ORDINARY NEGLIGENCE OF TRUSTEE, BENEFICIARY OR AN INDEMNIFIED
PARTY OR WHICH MAY RESULT FROM STRICT LIABILITY, WHETHER UNDER APPLICABLE LAW OR OTHERWISE,
UNLESS SUCH LOSS IS CAUSED BY THE GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR BAD FAITH OF
TRUSTEE, BENEFICIARY OR INDEMNIFIED PARTY. SHOULD TRUSTEE, BENEFICIARY AND/OR ANY
INDEMNIFIED PARTY MAKE ANY EXPENDITURE ON ACCOUNT OF ANY SUCH LOSSES, THE AMOUNT THEREOF,
INCLUDING, WITHOUT LIMITATION, COSTS, EXPENSES AND REASONABLE ATTORNEYS’ FEES, SHALL BE A
DEMAND OBLIGATION (WHICH OBLIGATION GRANTOR HEREBY EXPRESSLY PROMISES TO PAY) OWING BY
GRANTOR TO TRUSTEE AND/OR BENEFICIARY AND SHALL BEAR INTEREST FROM THE DATE EXPENDED UNTIL
PAID AT THE HIGHEST RATE ALLOWED BY LAW, SHALL BE A PART OF THE OBLIGATIONS AND SHALL BE
SECURED BY THIS DEED OF TRUST. THE LIABILITIES OF GRANTOR AS SET FORTH IN THIS SECTION 8.8
SHALL SURVIVE THE TERMINATION OF THIS DEED OF TRUST.

ARTICLE 9

SECURITY AGREEMENT

	9.1	 	Security Interest. This Deed of Trust shall be construed as a deed of trust on real
property and it shall (subject to the Senior Liens) also constitute and serve as a “Security
Agreement” on personal property within the meaning of, and shall constitute a security
interest under, the UCC with respect to the Personalty, Fixtures and Leases. To this end,
Grantor has GRANTED, BARGAINED, CONVEYED, ASSIGNED, TRANSFERRED,

14

 

	 	 	AND SET OVER, and by these presents does GRANT, BARGAIN, CONVEY, ASSIGN, TRANSFER AND SET
OVER, unto Trustee and unto Beneficiary, a security interest in all of Grantor’s right,
title and interest in, to and under the Personalty, Fixtures and Leases to secure the full
and timely performance and discharge of the Obligations, subject only to the Permitted
Encumbrances.

	9.2	 	Financing Statements. Grantor hereby authorizes Beneficiary to file such “Financing
Statements,” and Grantor hereby agrees to execute and deliver such further assurances as
Beneficiary may, from time to time, consider reasonably necessary to create, perfect and
preserve Beneficiary’s security interest herein granted and Beneficiary may cause such
statements and assurances to be recorded and filed, at such times and places as may be
required or permitted by law to so create, perfect and preserve such security interest.
	 
	9.3	 	Uniform Commercial Code Remedies. Subject, in each case, to the rights of any
Lienholder under or pursuant to the Senior Liens, and the terms and provisions of the SNDA and
this Deed of Trust, Beneficiary and/or Trustee shall have all the rights, remedies and
recourses (other than auction and sale rights) with respect to the Personalty, Fixtures and
Leases afforded to it by the aforesaid UCC in addition to, and not in limitation of, the other
rights, remedies and recourses afforded by this Deed of Trust.
	 
	9.4	 	No Obligation of Trustee or Beneficiary. The assignment and security interest herein
granted shall not be deemed or construed to constitute Trustee or Beneficiary as a trustee in
possession of the Mortgaged Property, to obligate Trustee or Beneficiary to lease the
Mortgaged Property or attempt to do same, or to take any action, incur any expense or perform
or discharge any obligation, duty or liability whatsoever.
	 
	9.5	 	Fixture Filing. This Deed of Trust shall constitute a “fixture filing” for all
purposes of Article 9 of the UCC. All or part of the Mortgaged Property are or are to become
fixtures; information concerning the security interest herein granted may be obtained at the
addresses set forth on the first page hereof. The address of the Secured Party (Beneficiary)
is the address set forth in Section 1.1(d) and the address of the Debtor (Grantor) is the
address set forth in the opening paragraph of this Deed of Trust.
	 
	9.6	 	Satisfaction and Release. If (a) all Obligations secured hereby shall be paid,
performed and satisfied in full, (b) the Mortgaged Property (or any portion thereof, in which
case the provisions of clauses (i) through (iv) below shall be applicable only to such
portion) shall be sold, consigned, conveyed or transferred in accordance with the provisions
of the Throughput Agreement, and/or (c) the Throughput Agreement shall be terminated,
cancelled or otherwise expire, and the Obligations of ____________________ set forth in
Section 2(c) of the Throughput Agreement shall no longer be applicable, and/or (d) at any time
Grantor’s (or ____________________, in the event Grantor does not have a stand-alone credit
rating) senior unsecured debt has an Investment Grade Rating (as hereinafter defined) from
both Moody’s Investors Service, Inc. (“Moody’s”) and Standard & Poor’s Ratings Group
(“S&P”) (or any successor to the rating business of either thereof), then (i) this
Deed of Trust shall be null and void, (ii) the liens and security interests created by this
Deed of Trust shall be released as promptly as practicable, (iii) the Mortgaged Property shall
revert to Grantor (or the transferee in the case of clause (b)

15

 

	 	 	above) free and clear of the liens and security interests created by this Deed of Trust, and
(iv) Beneficiary and Trustee (as applicable) shall execute and deliver, or cause to be
executed and delivered, instruments of satisfaction and release that are reasonably
requested by Grantor. Otherwise, this Deed of Trust shall remain and continue in full force
and effect. As used in this Section 9.6, the term “Investment Grade Rating” shall mean a
rating equal to or higher than Baa3 (or the equivalent) by Moody’s, or BBB- (or the
equivalent) by S&P.

ARTICLE 10

CONCERNING THE TRUSTEE

	10.1	 	No Required Action. Trustee shall not be required to take any action toward the
execution and enforcement of the trust hereby created or to institute, appear in or defend any
action, suit or other proceeding in connection therewith where in his opinion such action will
be likely to involve him in expense or liability, unless requested so to do by a written
instrument signed by Beneficiary and, if Trustee so requests, unless Trustee is tendered
security and indemnity satisfactory to him against any and all costs, expense and liabilities
arising therefrom. Trustee shall not be responsible for the execution, acknowledgment or
validity of the Security Documents, or for the proper authorization thereof, or for the
sufficiency of the lien and security interest purported to be created hereby, and makes no
representation in respect thereof or in respect of the rights, remedies and recourses of
Beneficiary.
	 
	10.2	 	Certain Rights. With the approval of Beneficiary, Trustee shall have the right to
take any and all of the following actions: (a) to select, employ and advise with counsel (who
may be, but need not be, counsel for Beneficiary) upon any matters arising hereunder,
including the preparation, execution and interpretation of the Security Documents, and shall
be fully protected in relying as to legal matters on the advice of counsel; (b) to execute any
of the trusts and powers hereof and to perform any duty hereunder either directly or through
his agents or attorneys; (c) to select and employ, in and about the execution of his duties
hereunder, suitable accountants, engineers and other experts, agents and attorneys-in-fact,
either corporate or individual, not regularly in the employ of Trustee, and Trustee shall not
be answerable for any act, default or misconduct of any such accountant, engineer or other
expert, agent or attorney-in-fact, if selected with reasonable care, or for any error of
judgment or act done by Trustee in good faith, or be otherwise responsible or accountable
under any circumstances whatsoever, except for Trustee’s gross negligence or bad faith; and
(d) to take any and all other lawful action as Beneficiary may instruct Trustee to take to
protect or enforce Beneficiary’s rights hereunder. Trustee shall not be personally liable in
case of entry by him, or anyone entering by virtue of the powers herein granted him, upon the
Mortgaged Property for debts contracted or liability or damages incurred in the management or
operation of the Mortgaged Property. Trustee shall have the right to rely on any instrument,
document or signature authorizing or supporting any action taken or proposed to be taken by
him hereunder, believed by him in good faith to be genuine. Trustee shall be entitled to
reimbursement for expenses incurred by him in the performance of his duties hereunder and to
reasonable compensation for such of his services hereunder as shall be rendered.

16

 

	 	 	Grantor will, from time to time, pay the compensation due to Trustee hereunder and reimburse
Trustee for, and save him harmless against, any and all liability and expenses which may be
incurred by him in the performance of his duties.
	 
	10.3	 	Retention of Moneys. All moneys received by Trustee shall, until used or applied as
herein provided, be held in trust for the purposes for which they were received, but need not
be segregated in any manner from any other moneys (except to the extent required by law) and
Trustee shall be under no liability for interest on any moneys received by him hereunder.
	 
	10.4	 	Successor Trustees. Trustee may resign by the giving of notice of such resignation
in writing to Beneficiary. If Trustee shall die, resign or become disqualified from acting in
the execution of this trust, or shall fail or refuse to execute the same when requested by
Beneficiary so to do, or if, for any reason, Beneficiary shall prefer to appoint a substitute
trustee to act instead of the aforenamed Trustee, Beneficiary shall have full power to appoint
a substitute trustee and, if preferred, several substitute trustees in succession who shall
succeed to all the estates, properties, rights, powers and duties of the aforenamed Trustee.
Such appointment may be executed by any authorized agent of Beneficiary, and if such
Beneficiary be a corporation and such appointment be executed in its behalf by any officer of
such corporation, such appointment shall be conclusively presumed to be executed with
authority and shall be valid and sufficient without proof of any action by the Board of
Directors or any superior officer of the corporation. Grantor hereby ratifies and confirms
any and all acts which the aforenamed Trustee, or his successor or successors in this trust,
shall do lawfully by virtue hereof.
	 
	10.5	 	Perfection of Appointment. Should any deed, conveyance or instrument of any nature
be required from Grantor by any successor Trustee to more fully and certainly vest in and
confirm to such new Trustee such estates, rights, powers and duties, then, upon request by
such Trustee, any and all such deeds, conveyances and instruments shall be made, executed,
acknowledged and delivered and shall be caused to be recorded and/or filed by Grantor.
	 
	10.6	 	Succession Instruments. Any new Trustee appointed pursuant to any of the provisions
hereof shall, without any further act, deed or conveyance, become vested with all the estates,
properties, rights, powers and trusts of its or his predecessor in the rights hereunder with
like effect as if originally named as Trustee herein; but nevertheless, upon the written
request of Beneficiary or of the successor Trustee, the Trustee ceasing to act shall execute
and deliver an instrument transferring to such successor Trustee, upon the trusts herein
expressed, all the estates, properties, rights, powers and trusts of the Trustee so ceasing to
act, and shall duly assign, transfer and deliver any of the property and moneys held by such
Trustee to the successor Trustee so appointed in its or his place.
	 
	10.7	 	No Representation by Trustee. By accepting or approving anything required to be
observed, performed or fulfilled or to be given to Trustee or Beneficiary pursuant to the
Security Documents, including but not limited to, any officer’s certificate, balance sheet,
statement of profit and loss or other financial statement, survey, appraisal or insurance
policy, neither Trustee nor Beneficiary shall be deemed to have warranted, consented to,

17

 

	 	 	or affirmed the sufficiency, legality, effectiveness or legal effect of the same, or of any
term, provision or condition thereof, and such acceptance or approval thereof shall not be
or constitute any warranty, consent or affirmation with respect thereto by Trustee or
Beneficiary.

ARTICLE 11

MISCELLANEOUS

	11.1	 	Performance at Grantor’s Expense. The cost and expense of performing or complying
with any and all of the Obligations shall be borne solely by Grantor and/or
____________________ to the extent provided in the Throughput Agreement.
	 
	11.2	 	Survival of Obligations. Each and all of the Obligations shall survive the execution
and delivery of the Security Documents and shall continue in full force and effect until the
Obligations have been performed and discharged in full.
	 
	11.3	 	Further Assurances. Grantor, upon the request of Trustee or Beneficiary, will
execute, acknowledge, deliver and record and/or file such further instruments and do such
further acts as may be necessary, desirable or proper to carry out more effectively the
purpose of the Security Documents and to subject to the liens and security interests thereof
any property intended by the terms thereof to be covered thereby, including specifically but
without limitation, any renewals, additions, substitutions, replacements, betterments or
appurtenances to the then Mortgaged Property.
	 
	11.4	 	Recording and Filing. Grantor will cause the Security Documents and all amendments
and supplements thereto and substitutions therefor to be recorded, filed, re-recorded and
refiled in such manner and in such places as Trustee or Beneficiary shall reasonably request,
and will pay all such recording, filing, re-recording and refiling taxes, fees and other
charges.
	 
	11.5	 	Notices.

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

	 	 	 

	Grantor:

	 	____________________
	 

	 	____________________
	 

	 	____________________
	 

	 	Attn: ____________________
	 

	 	Email address: ____________

18

 

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

	 	 	 

	 

	 	____________________
	 

	 	____________________
	 

	 	____________________
	 

	 	Attn: ____________________
	 

	 	Email address: ____________
	 
	 	 
	Beneficiary:

	 	____________________
	 

	 	____________________
	 

	 	____________________
	 

	 	Attn: ____________________
	 

	 	Email address: ____________

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

	 	 	 

	 

	 	____________________
	 

	 	____________________
	 

	 	____________________
	 

	 	Attn: ____________________
	 

	 	Email address: ____________

(b) Any party may at any time change its address for service by giving notice to the other
parties in accordance with this Section 11.5.

	11.6	 	No Waiver. Any failure by Trustee or Beneficiary to insist, or any election by
Trustee or Beneficiary not to insist, upon strict performance by Grantor of any of the terms,
provisions or conditions of the Security Documents shall not be deemed to be a waiver of same
or of any other terms, provision or condition thereof and Trustee or Beneficiary shall have
the right at any time or times thereafter to insist upon strict performance by Grantor of any
and all of such terms, provisions and conditions.
	 
	11.7	 	Beneficiary’s Right to Perform the Obligations. If Grantor shall fail, refuse or
neglect to make any payment or perform any act required by the Security Documents (after
giving effect to any applicable notice and cure period), then at any time thereafter, and
without further notice to or demand upon Grantor and without waiving or releasing any other
right, remedy or recourse Beneficiary may have because of same, Beneficiary may (but shall not
be obligated to) make such payment or perform such act for the account of and at the expense
of Grantor, and shall have the right to enter upon or in the Real Property for such purpose
and to take all such action thereon and with respect to the Mortgaged Property as it may deem
necessary or appropriate but in any case subject to the rights of any Lienholder arising under
or pursuant to the Senior Liens and the terms and provisions of the SNDA. If Beneficiary
shall elect to pay any Imposition or other sums due with reference to the Mortgaged Property,
Beneficiary may do so in reliance on any bill, statement or assessment procured from the
appropriate Governmental Entity or

19

 

	 	 	other issuer thereof without inquiring into the accuracy or validity thereof. Similarly, in
making any payments to protect the security intended to be created by the Security
Documents, Beneficiary shall not be bound to inquire into the validity of any apparent or
threatened adverse title, lien, encumbrance, claim or charge before making an advance for
the purpose of preventing or removing the same. Grantor shall indemnify Beneficiary for all
losses, expenses, damages, claims and causes of action, including reasonable attorneys’
fees, incurred or accruing by reason of any acts performed by Beneficiary pursuant to the
provisions of this Section 11.7 or by reason of any other provision in the Security
Documents. All sums paid by Beneficiary pursuant to this Section 11.7 and all other sums
expended by Beneficiary to which it shall be entitled to be indemnified, together with
interest thereon at the maximum rate allowed by law from the date of such payment or
expenditure, shall be secured by the Security Documents and shall be paid by Grantor to
Beneficiary upon demand.

	11.8	 	Covenants Running with the Land. All Obligations contained in the Security Documents
are intended by the parties to be, and shall be construed as, covenants running with the
Mortgaged Property.
	 
	11.9	 	Successors and Assigns. All of the terms of the Security Documents shall apply to,
be binding upon and inure to the benefit of the parties thereto, their successors and assigns,
and all other Persons claiming by, through or under them.
	 
	11.10	 	Severability. The Security Documents are intended to be performed in accordance
with, and only to the extent permitted by, all applicable Legal Requirements. If any
provision of any of the Security Documents or the application thereof to any Person or
circumstance shall, for any reason and to any extent, be invalid or unenforceable neither the
remainder of the instrument in which such provision is contained nor the application of such
provision to other Persons or circumstances nor the other instruments referred to hereinabove
shall be affected thereby, but rather shall be enforced to the greatest extent permitted by
law.
	 
	11.11	 	Entire Agreement and Modification. The Security Documents contain the entire
agreements between the parties relating to the subject matter hereof and thereof and all prior
agreements relative thereto which are not contained herein or therein are terminated.
Notwithstanding anything herein to the contrary, Grantor and, by its acceptance hereof,
Beneficiary hereby acknowledge and agree that in the event that any of the terms or provisions
of this Deed of Trust conflict with any terms or provisions of the Throughput Agreement, the
terms or provisions of the Throughput Agreement shall govern and control for all purposes.
The Security Documents may not be amended, revised, waived, discharged, released or terminated
orally but only by a written instrument or instruments (a) executed by the party against which
enforcement of the amendment, revision, waiver, discharge, release or termination is asserted,
and (b) consented to by the Lienholders to the extent any such amendment, revision, waiver,
discharge, release or termination would be materially adverse to the rights of any such
Lienholder. Any alleged amendment, revision, waiver, discharge, release or termination which
is not so documented shall not be effective as to any party.

20

 

	11.12	 	Counterparts. This Deed of Trust may be executed in any number of counterparts,
each of which shall be an original but all of which together shall constitute but one
instrument.
	 
	11.13	 	Applicable Law. This Deed of Trust shall be construed and enforced in accordance
with and governed by the laws of the State of __________ and the laws of the United States of
America, except that to the extent that the law of the state in which a portion of the
Mortgaged Property is located (or which is otherwise applicable to a portion of the Mortgaged
Property) necessarily or appropriately governs with respect to procedural and substantive
matters relating to the creation, perfection and enforcement of the liens, security interests
and other rights and remedies of Trustee on behalf of Beneficiary or Beneficiary granted
herein, the laws of such state shall apply as to that portion of the Mortgaged Property
located in (or otherwise subject to the laws of) such state.
	 
	11.14	 	No Partnership. Nothing contained in the Security Documents is intended to, or
shall be construed as, creating to any extent and in any manner whatsoever, any partnership,
joint venture, or association between Grantor, Trustee and Beneficiary, or in any way make
Beneficiary or Trustee coprincipals with Grantor with reference to the Mortgaged Property, and
any inferences to the contrary are hereby expressly negated.
	 
	11.15	 	Headings. The Article, Section and Subsection entitlements hereof are inserted for
convenience of reference only and shall in no way alter, modify or define, or be used in
construing, the text of such Articles, Sections or Subsections.
	 
	11.16	 	Waiver of Stay, Moratorium, and Similar Rights. Grantor agrees, to the full extent
that it may lawfully do so, that it will not at any time insist upon or plead or in any way
take advantage of any appraisement, valuation, stay, marshalling of assets, extension,
redemption or moratorium law now or hereafter in force and effect so as to prevent or hinder
the enforcement of the provisions of this Deed of Trust or the indebtedness secured hereby, or
any agreement between Grantor and Beneficiary or any rights or remedies Beneficiary may have
thereunder, hereunder or by law.
	 
	11.17	 	Transfer of Mortgaged Property. No sale, lease, exchange, assignment, conveyance or
other transfer (each, a “Transfer”) of the Mortgaged Property will extinguish the lien
or security interest created by this Deed of Trust, except to the extent provided in Section
9.6 of this Deed of Trust or in the Throughput Agreement. As a condition to any Transfer,
Beneficiary may (a) require the express assumption of the Obligations by the transferee (with
or without the release of Grantor from liability in respect thereof), and (b) require the
execution of an assumption agreement, modification agreements, supplemental security documents
and financing statements satisfactory in form and substance to Beneficiary.
	 
	11.18	 	Estoppel Certificates. Grantor and Beneficiary agree to execute and deliver from
time to time, upon the request of the other party, a certificate regarding the status of the
Throughput Agreement, consisting of statements, if true (or if not, specifying why not), (a)
that the Throughput Agreement is in full force and effect, (b) the date through which payments
have been paid, (c) the date of the commencement of the term of the Throughput Agreement, (d)
the nature of any amendments or modifications of the

21

 

	 	 	Throughput Agreement, (e) to such party’s actual knowledge without investigation, no
default, or state of facts which with the passage of time or notice (or both) would
constitute a default, exists under the Throughput Agreement, (f) to such party’s actual
knowledge without investigation, no setoffs, recoupments, estoppels, claims or counterclaims
exist against the other party under the Throughput Agreement, and (g) such other factual
matters as may be reasonably requested.

	11.19	 	Final Agreement. Grantor acknowledges receipt of a copy of this instrument at the
time of execution hereof. Grantor acknowledges that, except as incorporated in writing in
this Deed of Trust, there are not, and were not, and no persons are or were authorized to make
any representations, understandings, stipulations, agreements or promises, oral or written,
with respect to the matters addressed in this Deed of Trust. THE WRITTEN AGREEMENTS HEREIN
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
	 
	11.20	 	Throughput Agreements. Notwithstanding the fact that neither Grantor nor
Beneficiary is a party to the Throughput Agreement in effect as of the date of this Deed of
Trust, for purposes of this Deed of Trust, (a) Grantor agrees to be bound by the terms of the
Throughput Agreement to which ____________________ is bound, and (b) by accepting this Deed of
Trust, Beneficiary agrees to be bound by the terms of the Throughput Agreement to which
____________________is bound. Grantor acknowledges, and by accepting this Deed of Trust
Beneficiary acknowledges, that (i) Grantor is a wholly-owned subsidiary of
____________________, (ii) ____________________ is a wholly-owned subsidiary of Beneficiary,
and (iii) the Throughput Agreement governs the operation of the Assets that constitute a
portion of the collateral under this Deed of Trust, and, as a result, both Grantor and
Beneficiary will receive substantial benefit in connection with the Throughput Agreement.
[NOTE: This paragraph is subject to revision or deletion to account for the parties to the
applicable Throughput Agreement.]

[SIGNATURE PAGE TO FOLLOW]

22

 

     WITNESS THE EXECUTION HEREOF as of the date first above written.

	 	 	 	 	 	 	 	 	 

	 	 	____________________	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	____________________, its ____________	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

	 	 	 

	EMPLOYER IDENTIFICATION NUMBER OF GRANTOR:

	 	____________________
	 
	ORGANIZATIONAL NUMBER OF GRANTOR:

	 	____________________

Signature Pages — Subordinated Mortgage

 

	 	 	 
	THE STATE OF __________

	 	§ 
	 

	 	§ 
	COUNTY OF ____________

	 	§ 

     This instrument was acknowledged before me on ____________________, 201__, by
____________________, ____________________of ____________________, a ____________________,
____________________of ____________________, a ____________________, on behalf of said
___________________.

	 	 	 	 	 

	 

	 	 

Notary Public, State of __________
	 	 

My Commission Expires:

                                        

Acknowledgment Pages — Subordinated Mortgage

 

EXHIBIT A

ASSETS

A-1

 

EXHIBIT B

REAL PROPERTY

B-1

 

ATTACHMENT 1

FORM OF SUBORDINATION, NON-DISTURBANCE

AND ATTORNMENT AGREEMENT

After recording, return to:

____________________

____________________

____________________

____________________

SUBORDINATION, NON-DISTURBANCE

AND ATTORNMENT AGREEMENT

     This Subordination, Non-Disturbance and Attornment Agreement (this “Agreement”) is
executed effective as of December ___, 201__, among ____________________, in its capacity
as administrative agent (or any assignee of or successor to such administrative agent) under the
Credit Agreement (as defined below) and on behalf of the Credit Parties (as defined below)
(“Administrative Agent”), and ____________________, a
____________________ (“Holly”).

RECITALS:

     A. ____________________, a ____________________
(“____________________”), the financial institutions party thereto from time to time
(individually, a “Financial Institution” and collectively, the “Financial
Institutions”), the Financial Institutions issuing letters of credit thereunder from time to
time, if any (individually, an “Issuing Bank” and collectively, the “Issuing
Banks”), the Financial Institutions or any affiliate thereof that have entered into hedging
arrangements with ____________________ or any subsidiary thereof from time to time (individually, a
“Swap Counterparty” and collectively, the “Swap Counterparties” and, together with
Administrative Agent, the Financial Institutions and the Issuing Banks, being collectively referred
to herein as the “Credit Parties”) are parties to that certain ____________________
dated as of ____________________ (as heretofore and hereafter renewed, extended,
amended, supplemented, replaced, modified and/or restated from time to time, the “Credit
Agreement”).

     B. The Financial Institutions are the present owners and holders of certain promissory notes
dated ____________________, executed by ____________________ and payable to the
order of each such Financial Institution (as heretofore and hereafter renewed, extended, amended,
supplemented, replaced, modified, and/or restated from time to time and together with any
additional notes issued under or pursuant to the Credit Agreement, the “Notes”).
Administrative Agent, for the ratable benefit of the Credit Parties, is the beneficiary of that
certain ____________________ dated effective as of ____________________ (as
heretofore and hereafter renewed, extended, amended, supplemented, replaced, modified, and/or
restated from time to time, collectively, the “Senior Mortgages”), and the secured party
under certain other security agreements and documents entered into in connection with the Credit
Agreement (as heretofore

Attachment 1-1

 

and hereafter renewed, extended, amended, supplemented, replaced, modified, and/or restated
from time to time, the “Security Instruments” and, together with the Credit Agreement, the
Notes, the Senior Mortgages and any other documents, instruments and agreements executed and/or
delivered in connection with the Credit Agreement, collectively, the “Senior Loan
Documents”).

     C. Pursuant to the Senior Loan Documents and to secure the Notes and the other Secured
Obligations (as defined in the Senior Mortgages), ____________________, a
____________________ (“Grantor”) granted a security interest and mortgage lien to
or for the benefit of Administrative Agent, covering the Property (defined below), including the
Realty Collateral (as defined in the Senior Mortgages) described on Exhibit A attached
hereto. As used herein, “Property” shall mean the Mortgaged Property, as such term is
defined in the Senior Mortgages.

     D. Holly is the current owner of certain rights and interests under and pursuant to the
provisions of that certain ____________________ dated as of ____________________, by and
between ____________________, a ____________________
(“____________________”) and ____________________ (together with any amendments,
restatements or modifications from time to time made thereto, the “Throughput Agreement”).

     E. Holly is the current beneficiary of certain liens and security interests in a portion of
the Property (the “Subordinated Liens”) under and pursuant to the provisions of that
certain Mortgage and Deed of Trust (with Security Agreement and Financing Statement) (the
“Holly Mortgage”) dated effective as of ____________________ executed by Grantor
to ____________________, Trustee, for the benefit of Holly, securing the Obligations (as
defined in the Holly Mortgage and referred to herein as the “HEP Obligations”), such Holly
Mortgage being recorded (or to be recorded) in ___________________.

     F. Holly has agreed to subordinate its Subordinated Lien under the Holly Mortgage (but
not, pursuant to this Agreement, any of its rights and interests under the Throughput Agreement) to
(i) the Senior Mortgages and the other Senior Loan Documents, and (ii) any other mortgage, deed of
trust or security instrument granted by a Purchaser (as defined in Section 3 below) or any
subsequent purchaser of any portion of the Mortgaged Property (as heretofore and hereafter renewed,
extended, amended, supplemented, replaced, modified, and/or restated from time to time, a
“Future Senior Mortgage”) that secures debt and obligations of, and other extensions of
credit to, such Purchaser or purchaser (together with the Secured Obligations (as defined in the
Senior Mortgages), referred to herein as the “Senior Secured Obligations”) and
Administrative Agent has agreed that it and any such Purchaser at foreclosure of a Senior Mortgage
shall recognize and not disturb or extinguish the Holly Mortgage, all on the terms and conditions
hereinafter set forth.

AGREEMENTS:

     NOW, THEREFORE, in consideration of Ten Dollars ($10) and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Administrative Agent
and Holly hereby covenant and agree as follows:

Attachment 1-2

 

     1. Subordination of Holly Mortgage.

          (a) Subject to the provisions of Section 3 and Section 4 hereof, the Subordinated Liens of
Holly under the Holly Mortgage and all of the terms, covenants and provisions of the Holly
Mortgage, and all rights, remedies and options of Holly thereunder, are and shall at all times
continue to be subject, subordinate and inferior in all respects to the Senior Loan Documents and
any Future Senior Mortgage and to the liens and security interests thereof and to all amendments,
modifications, and replacements thereof, with the same force and effect as if the Senior Loan
Documents, or if applicable, the Future Senior Mortgage, had been executed, delivered and recorded
prior to the execution, delivery and recordation of the Holly Mortgage. This Agreement is not
intended, and shall not be construed, to (i) subordinate the rights and interests of Holly under
the Throughput Agreement (including Holly’s right to quiet enjoyment under the Throughput Agreement
or any claims, remedies or damages that may be due or available to, or become due or available to,
Holly under the Throughput Agreement), or (ii) subordinate the Holly Mortgage to any mortgage, deed
of trust, assignment, security agreement, financing statement or other security document, other
than, with respect to clause (ii), the Senior Loan Documents and the Future Senior Mortgage.
Nothing in this Agreement shall impair, as between Grantor or ____________________, on the one
hand, and Holly, on the other hand, the obligations of Grantor and ____________________, which are
absolute and unconditional, to perform the HEP Obligations in accordance with their terms.

          (b) Notwithstanding anything herein or in the Holly Mortgage to the contrary, Holly hereby
acknowledges and agrees, and Grantor by its consent to this Agreement acknowledges and agrees, that
(i) in the event that any of the terms or provisions of this Agreement conflict with any terms or
provisions of the Holly Mortgage, the terms or provisions of this Agreement shall govern and
control for all purposes; and (ii) without the written prior consent of the Administrative Agent or
the beneficiary of any Future Senior Mortgage (together with the Credit Parties, the “Senior
Beneficiaries”), neither Holly nor Grantor (nor any future owner of the Mortgaged Property)
will amend, revise, supplement, replace, restate, or otherwise modify the Holly Mortgage if such
amendment, revision, supplement, replacement, restatement or other modification would be materially
adverse to the rights of any Senior Beneficiary.

     2. Relative Rights and Priorities. Subject to the provisions of Section 1, Section 3
and Section 4 hereof:

          (a) Until the Senior Secured Obligations have been indefeasibly paid in full, all commitments
to extend credit under the Credit Agreement (or if applicable, any agreement governing obligations
secured by a Future Senior Mortgage) have terminated, and all letters of credit issued thereunder
have been terminated and returned (the “Senior Obligations Payment Date”), Holly will not
(i) commence any foreclosure (whether a judicial foreclosure or non-judicial foreclosure) of the
Holly Mortgage, (ii) accept a deed or assignment in lieu of foreclosure, (iii) otherwise exercise
any of its rights or remedies under the Holly Mortgage, or (iv) take any Enforcement Action.

Attachment 1-3

 

          (b) Holly agrees that, until the Senior Obligations Payment Date has occurred:

               (i) it will not take or cause to be taken any action, the purpose or effect of which is to
make any Subordinated Lien pari passu with or senior to, or to give Holly any preference or
priority relative to, the liens and security interests with respect to the Senior Secured
Obligations;

               (ii) it will not oppose, object to, interfere with, hinder or delay, in any manner, whether by
judicial proceedings (including without limitation the filing of an Insolvency Proceeding (as
herein defined)) or otherwise, any foreclosure, sale, lease, exchange, transfer or other
disposition of the Mortgaged Property (as defined in the Holly Mortgage and with the same meaning
herein as therein defined) by any of the Senior Beneficiaries or any other Enforcement Action taken
by or on behalf of any of the Senior Beneficiaries;

               (iii) it has no right to (A) direct any of the Senior Beneficiaries to exercise any right,
remedy or power with respect to the Mortgaged Property or pursuant to the Senior Loan Documents or
any Future Senior Mortgage or (B) consent or object to the exercise by any of the Senior
Beneficiaries of any right, remedy or power with respect to the Mortgaged Property or pursuant to
the Senior Loan Documents or any Future Senior Mortgage or to the timing or manner in which any
such right is exercised or not exercised (or, to the extent they may have any such right described
in this clause (iii), whether as a junior lien creditor or otherwise, they hereby irrevocably waive
such right);

               (iv) it will not institute any suit or other proceeding or assert in any suit, Insolvency
Proceeding or other proceeding any claim against any of the Senior Beneficiaries seeking damages
from or other relief by way of specific performance, instructions or otherwise, with respect to,
and none of the Senior Beneficiaries shall be liable for any action taken or omitted to be taken by
any of the Senior Beneficiaries with respect to the Mortgaged Property or pursuant to the Senior
Loan Documents or any Future Senior Mortgage; and

               (v) the Senior Beneficiaries shall have the prior right to collect and receive any and all
proceeds which may be paid or distributed in respect of the Mortgaged Property in any Insolvency
Proceeding or otherwise arising from any sale or other disposition of the Mortgaged Property.

          (c) Until the Senior Obligations Payment Date has occurred, Holly agrees that it shall not,
in, or in connection with, any Insolvency Proceeding, file any pleadings or motions, take any
position at any hearing or proceeding of any nature, or otherwise take any action whatsoever, in
each case, that is inconsistent with the terms or spirit of, or intent of the parties with respect
to, this Agreement, including, without limitation, with respect to the determination of any liens
or claims held by any of the Senior Beneficiaries (including the validity and enforceability
thereof) or the value of any claims of such parties under the United States Bankruptcy Code or
otherwise; provided that Holly may file a proof of claim in an Insolvency Proceeding,
subject to the limitations contained in this Agreement and only if consistent with the terms and
the limitations imposed hereby; provided further, that if no proof of claim is
filed in any Insolvency Proceeding with respect to the HEP Obligations by the 10th day prior to the
bar date for such proof of claim, the Senior Beneficiaries may (but shall have no duty or
obligation

Attachment 1-4

 

to), after notice to Holly, file such proof of claim, provided that the foregoing shall not
confer to any Senior Beneficiary the right to vote on behalf of Holly in any insolvency proceeding.

          (d) Until the Senior Obligations Payment Date has occurred, whether or not an Insolvency
Proceeding has been commenced by or against the owner of the Mortgaged Property, any of the Senior
Beneficiaries shall have the exclusive right to take and continue any Enforcement Action with
respect to the Mortgaged Property, without any consultation with or consent of Holly. Upon the
occurrence and during the continuance of a default or an event of default under the Senior Loan
Documents or any Future Senior Mortgage, any of the Senior Beneficiaries may take and continue any
Enforcement Action with respect to the Senior Secured Obligations and the Mortgaged Property in
such order and manner as they may determine in their sole discretion.

          (e) To the extent required, Holly hereby consents to the liens and security interests created
by the Senior Mortgages and any Future Senior Mortgage, and Holly shall not object to or contest,
or support any other person or entity in contesting or objecting to, in any proceeding (including
without limitation, any Insolvency Proceeding), the validity, extent, perfection, priority or
enforceability of any lien or security interest in the Mortgaged Property granted in favor of any
of the Senior Beneficiaries. Notwithstanding any failure by any of the Senior Beneficiaries or
Holly or their respective representatives to perfect their liens in the Mortgaged Property or any
avoidance, invalidation or subordination by any third party or court of competent jurisdiction of
the liens in the Mortgaged Property granted in favor of any of the Senior Beneficiaries or Holly,
the priority and rights as between any of the Senior Beneficiaries and Holly and its
representatives with respect to the Mortgaged Property shall be as set forth herein.

     As used in this Section 2, the following terms shall have the following meanings:

     “Enforcement Action” means any demand for payment or acceleration thereof, the
bringing of any lawsuit or other proceeding, the exercise of any rights and remedies, directly or
indirectly, with respect to any Mortgaged Property, any enforcement or foreclosure of any lien or
security interest, any sale in lieu of foreclosure, the taking of possession, exercise of any
offset, repossession, garnishment, sequestration or execution, any collection of any Mortgaged
Property, any notice to account debtors on any Mortgaged Property or the commencement or
prosecution of enforcement of any of the rights and remedies under the Senior Loan Documents or
applicable law, including without limitation the exercise of any rights of set-off or recoupment,
and the exercise of any rights or remedies of a secured creditor under the uniform commercial code
of any applicable jurisdiction, under the United States Bankruptcy Code, as amended from time to
time or otherwise; provided, that, neither the exercise or enforcement by Holly of its rights under
the Throughput Agreement, nor the filing of a proof of claim in an Insolvency Proceeding, shall
constitute an Enforcement Action.

     “Insolvency Proceeding” means any proceeding in respect of bankruptcy, insolvency,
winding up, receivership, dissolution or assignment for the benefit of creditors, in each of the
foregoing events whether under the United States Bankruptcy Code, as amended from time to time or
any similar federal, state or foreign bankruptcy, insolvency, reorganization, receivership or
similar law.

Attachment 1-5

 

     3. Recognition and Non-Disturbance of Holly Mortgage. If Administrative Agent, any
other Credit Party or any other person (Administrative Agent, any other Credit Party or such other
person being herein called a “Purchaser”) shall become the owner of any part of the
Property by reason of the foreclosure (whether a judicial foreclosure or non-judicial foreclosure)
of a Senior Mortgage or the acceptance of a deed or assignment in lieu of foreclosure or otherwise
(any of such being herein called a “Foreclosure Event”), then for so long as the Throughput
Agreement is in effect, the Purchaser shall (i) recognize the Holly Mortgage, and the Holly
Mortgage shall not be terminated or affected thereby, but shall continue in full force and effect
upon all of the terms, covenants and conditions set forth in the Holly Mortgage, and (ii) be bound
by and subject to all of the terms, provisions, covenants and conditions of the Holly Mortgage;
provided, that, the Holly Mortgage shall be subordinated to any Future Senior Mortgage, regardless
of whether such Future Senior Mortgage is a direct replacement of an existing Senior Mortgage or
Security Instrument, and any such Future Senior Mortgage shall be considered a “Senior Mortgage”
for purposes of this Agreement and the Holly Mortgage. Administrative Agent shall not claim, or
seek adjudication, that the Holly Mortgage has been terminated or otherwise adversely affected by
any Foreclosure Event.

     4. Throughput Agreement. Administrative Agent recognizes and confirms that the
Throughput Agreement, and the rights and interests of Holly thereunder, shall in no way be
restricted, limited or otherwise affected by this Agreement, the Holly Mortgage, the Senior
Mortgages, any Future Senior Mortgage, the Security Instruments or any liens or security interests
thereof; provided, however, that, Holly agrees that nothing in the Throughput Agreement shall (a)
prevent any Purchaser or subsequent purchaser from owning or operating the Mortgaged Property, so
long as such Purchaser or subsequent purchaser shall have assumed, and be in compliance with,
____________________ obligations under the Throughput Agreement and shall have executed an
“SNDA” as defined in, and in accordance with, Article 6 of the Holly Mortgage, or (b) be deemed to
invalidate or require the release of any Senior Beneficiary’s liens in the Mortgaged Property in
connection with the exercise by Holly of a purchase option under the Throughput Agreement or
otherwise. Holly shall not amend, modify or supplement the Throughput Agreement without the prior
written consent of the Majority Banks (as defined in the Credit Agreement); provided, that, such
amendments, modifications or supplements may be made without the consent of the Majority Banks if
such amendments, modifications or supplements (i) individually or in the aggregate, are not
materially adverse to the rights of the Administrative Agent or the Financial Institutions, and
(ii) individually or in the aggregate, do not materially decrease the economic benefit that
____________________ would have otherwise received pursuant to such agreement. Administrative
Agent, both for itself and for any Purchaser, further agrees that upon any Foreclosure Event, the
Throughput Agreement shall not be terminated or affected thereby, nor shall Holly’s right to ship
or store petroleum products through the pipelines or in the terminals, respectively, constituting a
portion of the Property in accordance with the provisions of the Throughput Agreement (or any other
rights of Holly under the Throughput Agreement) be affected or disturbed because of the Foreclosure
Event, but rather the Throughput Agreement shall continue in full force and effect as direct
obligations between the Purchaser and Holly, upon all of the terms, covenants and conditions set
forth in the Throughput Agreement. Neither Administrative Agent nor any Purchaser shall claim, or
seek adjudication, that the Throughput Agreement has been terminated or otherwise adversely
affected by any Foreclosure Event. Notwithstanding the foregoing, in the event that the Throughput
Agreement is rejected in bankruptcy or is otherwise terminated, the Purchaser shall,

Attachment 1-6

 

promptly upon request by Holly, enter into a Throughput Agreement with Holly on substantially
the same terms (and with tariffs and minimum volumes commensurate with those then applicable under
the Throughput Agreement) and conditions as the rejected or terminated Throughput Agreement, but
having a term commencing on the date on which Purchaser acquired title to any portion of the
Property. The immediately preceding sentence shall be deemed to be a covenant running with the
land and shall be binding on any person or entity that acquires title to all or party of the
Property by, through or under a Senior Mortgage.

     5. Attornment With Respect to the Throughput Agreement. Upon the occurrence of any
Foreclosure Event, Holly shall attorn to the Purchaser, the Purchaser shall accept such attornment,
and the Purchaser and Holly shall be bound to each other under all of the terms, provisions,
covenants and conditions of the Throughput Agreement; provided, that, except for
Holly’s express rights and remedies under the Throughput Agreement, in no event shall the Purchaser
be liable for any act, omission, default, misrepresentation, or breach of warranty of Grantor or
____________________ (or any owner of the Mortgaged Property prior to such Purchaser) or
obligations accruing prior to Purchaser’s actual ownership of the Property. The provisions of this
Agreement regarding attornment by Holly shall be self-operative and effective without the necessity
of execution of any new document on the part of any party hereto or the respective heirs, legal
representatives, successors or assigns of any such party. Holly agrees, however, to execute and
deliver upon the request of Purchaser, any instrument or certificate which in the reasonable
judgment of Purchaser may be necessary or appropriate to evidence such attornment.

     6. Estoppel Certificate. Holly agrees to execute and deliver from time to time, upon
the request of any of the Senior Beneficiaries, a certificate regarding the status of the
Throughput Agreement, consisting of statements, if true (or if not, specifying why not), (a) that
the Throughput Agreement is in full force and effect, (b) the date through which payments have been
paid, (c) the date of the commencement of the term of the Throughput Agreement, (d) the nature of
any amendments or modifications of the Throughput Agreement, (e) to Holly’s actual knowledge
without investigation, no default, or state of facts which with the passage of time or notice (or
both) would constitute a default, exists under the Throughput Agreement, (f) to Holly’s actual
knowledge without investigation, no setoffs, recoupments, estoppels, claims or counterclaims exist
against Grantor or _____________________ under the Throughput Agreement, and (g) such other factual
matters as may be reasonably requested.

     7. [Intentionally Omitted].

     8. Reliance on Notices. Grantor agrees that Holly may rely upon any and all notices
from Administrative Agent or any Purchaser, even if such conflict with notices from Grantor.

     9. Notices. All notices, consents and other communications pursuant to the provisions
of this Agreement shall be in writing and shall be sent by (a) registered or certified mail,
postage prepaid, return receipt requested, (b) nationally recognized overnight delivery service, or
(c) telecopier or email, addressed as follows:

Attachment 1-7

 

	 	 	 

	If to Administrative Agent:

	 	____________________
	 

	 	____________________
	 

	 	____________________
	 

	 	____________________
	 
	 	 
	If to Holly:

	 	____________________
	 

	 	____________________
	 

	 	____________________
	 

	 	____________________

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

	 	 	 

	 

	 	____________________
	 

	 	____________________
	 

	 	____________________
	 

	 	____________________

Notice sent by registered or certified mail, postage prepaid, return receipt requested, shall be
deemed given and received on the third Business Day (hereinafter defined) after being deposited in
the United States mail, notice sent by nationally recognized overnight delivery service shall be
deemed given in conformity with this paragraph and received on the first Business Day after being
deposited with such delivery service, and notice given by telecopier or email shall be deemed given
and received upon actual receipt if received during the recipient’s normal business hours or at the
beginning of the recipient’s next Business Day after receipt if not received during the recipient’s
normal business hours. Each party may designate a change of address by notice to the other party.
“Business Day” means a day upon which commercial banks are not authorized or required by
law to close in Dallas, Texas.

     10. Binding Effect. This Agreement shall be binding upon Administrative Agent, Holly
and any Purchaser and inure to the benefit of the Senior Beneficiaries and Holly and their
respective successors and assigns. Grantor has assigned to Administrative Agent its rights
hereunder, and _____________________ has assigned to Administrative Agent its rights under the
Throughput Agreement by way of a collateral assignment. The parties agree that any person that
shall become the owner of any of the rights of Grantor hereunder, or any of the rights of
____________________ under the Throughput Agreement by reason of foreclosure (whether a judicial
foreclosure or non-judicial foreclosure and including, without limitation, Administrative Agent) or
the acceptance of a deed or assignment in lieu of foreclosure or otherwise shall (a) have the same
rights as Grantor hereunder, and ____________________ under the Throughput Agreement, including,
without limitation, under this Section 10, and (b) be bound by and subject to all of the terms,
provisions, covenants and conditions of this Agreement.

     11. General Definitions. The term “Administrative Agent” as used herein shall
include the successors and assigns of Administrative Agent. The term “____________________” as
used herein shall include the successors and assigns of ____________________ under the Throughput
Agreement, but shall not mean or include Administrative Agent. The term “Property” as used
herein shall mean the Property, the

Attachment 1-8

 

improvements now or hereafter located thereon and the estates therein encumbered by the Senior
Mortgages. The term “Holly” as used herein shall include the successors and assigns of
Holly hereunder and under the Throughput Agreement including, without limitation, any Holly
Successor.

     12. Modifications. This Agreement may not be modified in any manner or terminated
except by an instrument in writing executed by the parties hereto.

     13. Governing Law. This Agreement shall be governed by and construed under the laws
of the State in which the Property is located.

     14. Duplicate Originals; Counterparts. This Agreement may be executed in any number
of duplicate originals and each duplicate original shall be deemed to be an original. This
Agreement may be executed in several counterparts, each of which counterparts shall be deemed an
original instrument and all of such together shall constitute a single Agreement.

     15. Further Assurances. Without unreasonable delay and to the extent requested by
____________________, subject to Section 4 hereof and Article 6 of the Holly Mortgage, Holly will
enter into new Subordination, Non-Disturbance and Attornment Agreements, if necessary or advisable,
to facilitate the extension, amendment, supplement, restatement, replacement or refinancing of the
indebtedness under the Credit Agreement.

     16. Throughput Agreements. Notwithstanding the fact that neither Grantor nor Holly is
a party to the Throughput Agreement in effect as of the date of this Agreement, for the purpose of
this Agreement, (a) Grantor agrees to be bound by the terms of the Throughput Agreement to which
____________________ is bound, and (b) ____________________ agrees to be bound by the terms of the
Throughput Agreement to which ____________________ is bound. Grantor and Holly acknowledge that
(i) Grantor is a wholly-owned subsidiary of ____________________, (ii) ____________________ is a
wholly-owned subsidiary of Holly, and (iii) the Throughput Agreement governs the operation of the
pipelines that constitute a portion of the collateral under the Holly Mortgage, and, as a result,
both Grantor and Holly will receive substantial benefit in connection with the Throughput
Agreement.

[REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

Attachment 1-9

 

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

	 	 	 	 	 	 	 

	ADMINISTRATIVE AGENT:	 	                                        , as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Name:
	 	 
 

	 	 
	 

	 	Title:
	 	 
 

	 	 
	 
	 	 	 	 	 	 
	HOLLY:	 	                                        	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Name:
	 	 
 

	 	 
	 

	 	Title:
	 	 
 

	 	 

Attachment 1-10

 

GRANTOR’S CONSENT

     The undersigned hereby consents to the foregoing Subordination, Non-Disturbance and Attornment
Agreement and, without limitation, agrees to the provisions of Section 1 thereof.

	 	 	 	 	 	 	 	 	 

	                                        :	 	                                        	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	                                                            , its
                    	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

Attachment 1-11

 

	 	 	 

	THE STATE OF __________

	 	§
	 

	 	§
	COUNTY OF ____________

	 	§

     THIS INSTRUMENT was acknowledged before me on _______________, by ____________________,
____________________ of ____________________, a ____________________, as Administrative Agent, on
behalf of such ___________________.

        
                                                            

My Commission Expires

	 	 	 	 	 

	 

	 	 
 

	 	 
	 

	 	Notary Public in and for the State of __________	 	 
	 

	 	 
 

	 	 
	 

	 	Printed Name of Notary	 	 

Attachment 1-12

 

	 	 	 

	THE STATE OF __________

	 	§
	 

	 	§
	COUNTY OF ____________

	 	§

     THIS INSTRUMENT was acknowledged before me on _______________, by ____________________,
____________________of ____________________, a ____________________, on behalf of such
___________________.

                                       
                           

My Commission Expires

	 	 	 	 	 

	 

	 	 
 

	 	 
	 

	 	Notary Public in and for the State of __________	 	 
	 

	 	 
 

	 	 
	 

	 	Printed Name of Notary	 	 

Attachment 1-13

 

	 	 	 
	THE STATE OF __________

	 	§
	 

	 	§
	COUNTY OF ____________

	 	§

     This instrument was acknowledged before me on _______________, by ____________________,
____________________ of ____________________, a ____________________ ____________________ of
____________________, a ____________________, on behalf of said ___________________.

My Commission Expires

	 	 	 	 	 

	 

	 	 
 

	 	 
	 

	 	Notary Public in and for the State of __________	 	 
	 

	 	 
 

	 	 
	 

	 	Printed Name of Notary	 	 

Attachment 1-14

 

EXHIBIT A

DESCRIPTION OF REALTY COLLATERAL

Attachment 1-15

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