Document:

exv10w1

Exhibit 10.1

EXECUTION VERSION

 

 

ASSET PURCHASE AGREEMENT

(Tulsa Truck and Rail Equipment)

between

HOLLY REFINING & MARKETING — TULSA LLC

as Seller,

and

HEP TULSA LLC

as Buyer

Dated as of August 1, 2009

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE I 

DEFINED TERMS
	 
	 	 	 	 	 	 
	1.1

	 	Defined Terms
	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II 

TRANSFER OF ASSETS, ASSUMPTION OF LIABILITIES AND AGGREGATE
 CONSIDERATION
	 
	 	 	 	 	 	 
	2.1

	 	Sale of Assets and Assumption of Liabilities
	 	 	6	 
	2.2

	 	Consideration	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE III 

CLOSING
	 
	 	 	 	 	 	 
	3.1

	 	Closing
	 	 	6	 
	3.2

	 	Deliveries by the Seller
	 	 	6	 
	3.3

	 	Deliveries by the Buyer
	 	 	7	 
	3.4

	 	Prorations
	 	 	7	 
	3.5

	 	Closing Costs; Transfer Taxes and Fees
	 	 	8	 
	 
	 	 	 	 	 	 
	ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF THE SELLER
	 
	 	 	 	 	 	 
	4.1

	 	Organization
	 	 	8	 
	4.2

	 	Authorization
	 	 	8	 
	4.3

	 	No Conflicts or Violations; No Consents or Approvals Required
	 	 	9	 
	4.4

	 	Absence of Litigation
	 	 	9	 
	4.5

	 	Title to Transferred Assets
	 	 	9	 
	4.6

	 	Brokers and Finders
	 	 	9	 
	4.7

	 	WAIVERS AND DISCLAIMERS
	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE V 

REPRESENTATIONS AND WARRANTIES OF THE BUYER
	 
	 	 	 	 	 	 
	5.1

	 	Organization
	 	 	11	 
	5.2

	 	Authorization
	 	 	11	 
	5.3

	 	No Conflicts or Violations; No Consents or Approvals Required
	 	 	11	 
	5.4

	 	Absence of Litigation
	 	 	11	 
	5.5

	 	Brokers and Finders
	 	 	11	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE VI 

COVENANTS
	 
	 	 	 	 	 	 
	6.1

	 	Cooperation
	 	 	12	 
	6.2

	 	Additional Agreements
	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE VII 

ADDITIONAL AGREEMENTS
	 
	 	 	 	 	 	 
	7.1

	 	Further Assurances
	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE VIII 

INDEMNIFICATION
	 
	 	 	 	 	 	 
	8.1

	 	Indemnification of Buyer and Seller
	 	 	12	 
	8.2

	 	Defense of Third-Party Claims
	 	 	12	 
	8.3

	 	Direct Claims
	 	 	14	 
	8.4

	 	Limitations
	 	 	14	 
	8.5

	 	Tax Related Adjustments
	 	 	14	 
	 
	 	 	 	 	 	 
	ARTICLE IX 

MISCELLANEOUS
	 
	 	 	 	 	 	 
	9.1

	 	Expenses
	 	 	14	 
	9.2

	 	Notices
	 	 	15	 
	9.3

	 	Severability
	 	 	16	 
	9.4

	 	Governing Law
	 	 	16	 
	9.5

	 	Arbitration Provision
	 	 	16	 
	9.6

	 	Parties in Interest
	 	 	17	 
	9.7

	 	Assignment of Agreement
	 	 	17	 
	9.8

	 	Captions
	 	 	17	 
	9.9

	 	Counterparts
	 	 	17	 
	9.10

	 	Director and Officer Liability
	 	 	17	 
	9.11

	 	Integration
	 	 	17	 
	9.12

	 	Effect of Agreement
	 	 	18	 
	9.13

	 	Amendment; Waiver
	 	 	18	 
	9.14

	 	Survival of Representations and Warranties
	 	 	18	 
	 
	 	 	 	 	 	 
	ARTICLE X 

INTERPRETATION
	 
	 	 	 	 	 	 
	10.1

	 	Interpretation
	 	 	18	 
	10.2

	 	References, Gender, Number
	 	 	19	 

 

 

	 	 	 	 	 
	Exhibits:
	 	 	 	 
	 
	Exhibit A

	 	—
	 	Form of License Agreement
	Exhibit B

	 	—
	 	Form of Bill of Sale
	Exhibit C

	 	—
	 	Form of Tulsa Equipment and Throughput Agreement
	Exhibit D

	 	—
	 	Form of Restated Omnibus Agreement
	Exhibit E

	 	—
	 	Form of Purchase Option Agreement
	 
	 	 	 	 
	Schedules:
	 	 	 	 
	 
	Schedule 1.1

	 	—
	 	Transferred Assets

 

 

ASSET PURCHASE AGREEMENT

(Tulsa Truck and Rail Equipment)

     THIS ASSET PURCHASE AGREEMENT (this “Agreement”) dated as of August 1, 2009, is made and
entered into by and between Holly Refining & Marketing — Tulsa LLC, a Delaware limited liability
company (the “Seller”), and HEP Tulsa LLC, a Delaware limited liability company (the “Buyer”). The
above-named entities are sometimes referred to in this Agreement each as a “Party” and collectively
as the “Parties.”

     WHEREAS, on June 1, 2009, the Seller acquired a refinery located in Tulsa, Oklahoma (the
“Tulsa Refinery”) from Sunoco, Inc. (R&M) (“Sunoco”);

     WHEREAS, Buyer wishes to purchase certain truck and rail loading/unloading equipment located
at the Tulsa Refinery; and

     WHEREAS, the Parties wish to amend certain provisions of the Omnibus Agreement.

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants set forth herein
and in the Omnibus Agreement, 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
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, for purposes of this Agreement, the Seller, on the one
hand, and the Buyer, on the other hand, shall not be considered affiliates of each other.

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

1

 

     “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 Seller, on the one hand, and 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.

     “Assumed Liabilities” means all obligations and liabilities of the Seller with respect to the
Transferred Assets.

     “Bill of Sale” shall have the meaning set forth in Section 3.2(b).

     “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 the Buyer, or its affiliates, at the Closing pursuant to Section 3.3 hereof
and each other document or Contract entered into by the Buyer, or its 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 of the Buyer Indemnified Parties incurs and that arise out of or relate to any breach of a
representation, warranty or covenant of Seller 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

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

2

 

third-party claim for such indirect, consequential, punitive or exemplary damages or (y) the
gross negligence or willful misconduct of Seller).

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

     “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 9.5.

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

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

     “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.

     “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.

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

     “Holly” means Holly Corporation, a Delaware corporation.

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

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

3

 

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

     “Indemnifying Party” has the meaning set forth in Section 8.2.

     “knowledge” and any variations thereof or words to the same effect shall mean (i) with respect
to the Seller, actual knowledge after reasonable inquiry of the following persons: David L. Lamp
and George J. Damiris; and (ii) with respect to the Buyer, actual knowledge after reasonable
inquiry of the following persons: David G. Blair and Mark Cunningham.

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

     “License
Agreement” shall have the meaning set forth in Section 3.2(a).

     “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 Amended and Restated Omnibus Agreement entered into and
effective as of June 1, 2009, by and among Holly, Navajo Pipeline Co., L.P., a Delaware limited
partnership, Holly Logistic Services, L.L.C., a Delaware limited liability company, HEP Logistics
Holdings, L.P., a Delaware limited partnership, the Partnership, HEP Logistics GP, L.L.C., a
Delaware limited liability company, and Holly Energy Partners — Operating, L.P., a Delaware
limited partnership, and 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” means Holly Energy Partners, L.P., a Delaware limited partnership.

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

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

4

 

     “Permits” means all material permits, licenses, variances, exemptions, Orders, franchises and
approvals of all Governmental Entities necessary for the lawful ownership and operation of the
Transferred 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 Option Agreement” shall have the meaning set forth in Section 3.2(e).

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

     “Respondent” shall have the meaning set forth in Section 9.5.

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

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

     “Seller Ancillary Documents” shall mean each agreement, document, instrument or certificate to
be delivered by the Seller, or its affiliates, at the Closing pursuant to Section 3.2
hereof and each other document or Contract entered into by the Seller, or its 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
attorneys’ fees and expenses incurred in investigating and preparing for any litigation or
proceeding) that any of the Seller Indemnified Parties incurs and that arise out of or relate to
any breach of a representation, warranty or covenant of Buyer 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).

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

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

5

 

     “Sunoco” has the meaning set forth in the preamble.

     “third-party action” has the meaning set forth in Section 8.2.

     “Transferred Assets” means the assets described in Schedule 1.1; provided that for the
sake of clarity, in no event shall the Transferred Assets include or be deemed to include any
interest in or to the real property on which such Transferred Assets are situated, whether as fee
title, a leasehold interest, or otherwise.

     “Tulsa APA” means that certain Asset Sale and Purchase Agreement, dated April 15, 2009, by and
between the Seller (formerly known as Holly Refining & Marketing-MidCon, L.L.C.) and Sunoco.

     “Tulsa Equipment and Throughput Agreement” shall have the meaning set forth in Section
3.2(c).

     “Tulsa Refinery” has the meaning set forth in the preamble.

ARTICLE II

TRANSFER OF ASSETS, ASSUMPTION OF

LIABILITIES AND AGGREGATE CONSIDERATION

     2.1 Sale of Assets and Assumption of Liabilities. Subject to all of the terms and
conditions of this Agreement, Seller hereby sells, assigns, transfers and conveys to the Buyer,
and the Buyer hereby purchases and acquires from the Seller, the Transferred Assets, free and
clear of all Encumbrances, other than Permitted Encumbrances. Buyer hereby assumes all of the
Assumed Liabilities.

     2.2 Consideration.

          (a) The aggregate consideration to be paid by the Buyer for the Transferred Assets shall be
$17,500,000 (the “Purchase Price”).

          (b) The Purchase Price shall be paid at the Closing by wire transfer of immediately available
funds to the accounts specified by Seller.

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 the Closing Date (the “Effective Time”).

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

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

6

 

          (a) A counterpart to the equipment sites, access and rail line license agreement substantially
in the form of Exhibit A attached hereto (the “License Agreement”), duly executed by the
Seller.

          (b) The bill of sale and assignment substantially in the form of Exhibit B attached
hereto (the “Bill of Sale”), duly executed by the Seller.

          (c) A counterpart of the equipment and throughput agreement substantially in the form of
Exhibit C attached hereto (the “Tulsa Equipment and Throughput Agreement”), duly executed
by the Seller.

          (d) A counterpart of the second amended and restated omnibus agreement substantially in the
form of Exhibit D attached hereto (the “Restated Omnibus Agreement”), duly executed by
Holly and each applicable subsidiary of Holly (excluding the Partnership, HEP Logistics Holdings,
L.P., Holly Logistic Services, L.L.C. and their subsidiaries).

          (e) A counterpart of the purchase option agreement substantially in the form of Exhibit
E attached hereto (the “Purchase Option Agreement”), duly executed by the Seller.

          (f) Evidence in form and substance reasonably satisfactory to the Buyer of the release and
termination of all Encumbrances on the Transferred Assets, other than Permitted Encumbrances.

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

          (a) The Purchase Price as provided in Section 2.2(b).

          (b) A counterpart to the License Agreement, duly executed by the Buyer.

          (c) A counterpart to the Tulsa Equipment and Throughput Agreement, duly executed by the Buyer.

          (d) A counterpart of the Restated Omnibus Agreement, duly executed by the Partnership, HEP
Logistics Holdings, L.P., Holly Logistic Services, L.L.C. and each applicable subsidiary of such
entities.

          (e) A counterpart to the Purchase Option Agreement, duly executed by the Buyer.

     3.4 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 with respect to the Transferred Assets shall be prorated between the
Buyer, on the one hand, and the Seller, on the other hand, effective as of the Effective Time
with the Seller being responsible for amounts related to the period prior to but excluding the
Effective Time and the Buyer being responsible for amounts related to the period at and after

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

7

 

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.

     3.5 Closing Costs; Transfer Taxes and Fees.

          (a) Allocation of Costs. In the event any sales tax arises out of the transfer of the
Transferred Assets pursuant to this Agreement, then the Buyer shall pay the cost of all such sales
taxes; provided, however, that the Purchase Price shall first be reduced such that
the sum of the reduced Purchase Price plus the amount of sales taxes to be paid by Buyer equal
$17,500,000, and Seller shall return to Buyer an amount in cash equal to the reduction in the
Purchase Price.

          (b) Reimbursement. If the Buyer, on the one hand, or the Seller, 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.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE SELLER

     The Seller hereby represents and warrants to the Buyer that as of the date of this Agreement:

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

     4.2 Authorization. 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 the Seller of this Agreement and the Seller
Ancillary Documents and the consummation by the Seller of the transactions contemplated hereby
and thereby, have been duly authorized by all necessary limited liability company action of the
Seller. This Agreement has been duly executed and delivered by the Seller and constitutes, and
each such Seller Ancillary Document executed or to be executed by the Seller has been, or when
executed will be, duly executed and delivered by the Seller and constitutes, or when executed and
delivered will constitute, a valid and legally binding obligation of the 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.

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

8

 

     4.3 No Conflicts or Violations; No Consents or Approvals Required. The execution,
delivery and performance by the 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, (a) violate, conflict with, or result in any breach of any provision of the
Seller’s organizational documents or (b) 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 the Seller. No Consent of any
Governmental Entity or any other person is required for the Seller in connection with the
execution, delivery and performance of this Agreement and the Seller Ancillary Documents to which
the Seller is a party or the consummation of the transactions contemplated hereby or thereby.

     4.4 Absence of Litigation. There is no Action pending or, to the knowledge of the
Seller, threatened against the Seller or any of its affiliates relating to the transactions
contemplated by this Agreement or the Ancillary Documents or the Transferred Assets or which, if
adversely determined, would reasonably be expected to materially impair the ability of the Seller
to perform its obligations and agreements under this Agreement or the Seller Ancillary Documents
and to consummate the transactions contemplated hereby and thereby or that would constitute
Assumed Liabilities.

     4.5 Title to Transferred Assets.

          (a) The Seller has good and indefeasible title to the Transferred Assets, subject to all
Permitted Encumbrances, recorded matters and all physical conditions in existence on the Closing
Date, plus any other such matters as the Buyer may approve, which approval will not be unreasonably
withheld. The Seller does hereby represent that it knows of no material title defect affecting any
of the Transferred Assets, arising by, through or under the Seller.

          (b) There has not been granted to any person, and no person possesses, any right of first
refusal to purchase any of the Transferred Assets, except pursuant to this Agreement and the
Omnibus Agreement.

     4.6 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 Seller who is
entitled to receive from the Buyer any fee or commission in connection with the transactions
contemplated by this Agreement.

     4.7 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,

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

9

 

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 TRANSFERRED ASSETS INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL, GEOLOGY OR
ENVIRONMENTAL CONDITION OF THE TRANSFERRED ASSETS GENERALLY, INCLUDING THE PRESENCE OR LACK OF
HAZARDOUS SUBSTANCES OR OTHER MATTERS ON THE TRANSFERRED ASSETS, (II) THE INCOME TO BE DERIVED
FROM THE TRANSFERRED ASSETS, (III) THE SUITABILITY OF THE TRANSFERRED ASSETS FOR ANY AND ALL
ACTIVITIES AND USES THAT MAY BE CONDUCTED THEREON, (IV) THE COMPLIANCE OF OR BY THE TRANSFERRED
ASSETS OR THEIR 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 TRANSFERRED 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 TRANSFERRED 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
TRANSFERRED ASSETS SHALL BE MADE IN AN “AS IS,” “WHERE IS” CONDITION WITH ALL FAULTS, AND THE
TRANSFERRED 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 TRANSFERRED ASSETS 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
TRANSFERRED 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.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE BUYER

     The Buyer hereby represents and warrants to the Seller that as of the date of this Agreement:

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

10

 

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

     5.2 Authorization. The Buyer has full limited liability company 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 the Buyer of this Agreement and the Buyer
Ancillary Documents and the consummation by the Buyer of the transactions contemplated hereby and
thereby, have been duly authorized by all necessary liability company action of the Buyer. This
Agreement has been duly executed and delivered by the Buyer and constitutes, and each such Buyer
Ancillary Document executed or to be executed the Buyer has been, or when executed will be, duly
executed and delivered by the Buyer and constitutes, or when executed and delivered will
constitute, a valid and legally binding obligation of the 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 the 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 the
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 the Buyer. No Consent of any Governmental Entity or any other
person is required for the Buyer in connection with the execution, delivery and performance of
this Agreement and the other Buyer Ancillary Documents to which the 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 the
Buyer, threatened against the 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 the 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 the Buyer who is
entitled to receive from the Seller any fee or commission in connection with the transactions
contemplated by this Agreement.

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

11

 

ARTICLE VI

COVENANTS

     6.1 Cooperation. The Seller shall cooperate with the Buyer and assist the Buyer in
identifying all licenses, authorizations, permissions or Permits necessary to own and operate the
Transferred Assets from and after the Closing Date and, where permissible, transfer existing
Permits to the Buyer, or, where not permissible, assist the Buyer in obtaining new Permits at no
cost, fee or liability to the Seller.

     6.2 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.

ARTICLE VII

ADDITIONAL AGREEMENTS

     7.1 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 Party in order to effectuate
the intent of this Agreement and the Ancillary Documents and to provide such other Party with the
intended benefits of this Agreement and the Ancillary Documents.

ARTICLE VIII

INDEMNIFICATION

     8.1 Indemnification of Buyer and Seller. From and after the Closing and subject to
the provisions of this Article VIII, (i) Seller agrees to indemnify and hold harmless the
Buyer Indemnified Parties from and against any and all Buyer Indemnified Costs and (ii) Buyer
agrees to indemnify and hold harmless the Seller Indemnified Parties from and against any and all
Seller Indemnified Costs.

     8.2 Defense of Third-Party Claims. An Indemnified Party shall give prompt written
notice to Seller 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
VIII 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:

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

12

 

          (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

          (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 VIII 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.

     8.3 Direct Claims. In any case in which an Indemnified Party seeks indemnification
hereunder which is not subject to Section 8.2 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.

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

13

 

Subject to the limitations set forth in Section 8.4(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.

     8.4 Limitations. The following provisions of this Section 8.4 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 VIII unless a written claim for indemnification
in accordance with Section 8.2 or Section 8.3 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
second anniversary of the Closing Date.

          (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, the Buyer’s
and the other Buyer Indemnified Parties’ and the Seller’s 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 VIII. 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 or the Tulsa
Equipment and Throughput Agreement.

     8.5 Tax Related Adjustments. Seller 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 IX

MISCELLANEOUS

     9.1 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.

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

14

 

     9.2 Notices.

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

          Notices to the Seller:

Holly Refining & Marketing — Tulsa LLC

100 Crescent Court, Suite 1600

Dallas, Texas 75201-6927

Attention: David L. Lamp

Email address: president@hollycorp.com

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

Holly Refining & Marketing — Tulsa LLC

100 Crescent Court, Suite 1600

Dallas, Texas 75201-6927

Attention: General Counsel

Email address: generalcounsel@hollycorp.com

          Notices to the Buyer:

HEP Tulsa LLC

100 Crescent Court, Suite 1600

Dallas, Texas 75201-6927

Attention: David G. Blair

Email address: SVP-HEP@hollyenergy.com

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

HEP Tulsa LLC

100 Crescent Court, Suite 1600

Dallas, Texas 75201-6927

Attention: General Counsel

Email address: generalcounsel@hollycorp.com

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

15

 

          (b) Either Party may at any time change its address for service from time to time by giving
notice to the other Party in accordance with this Section 9.2.

     9.3 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.

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

     9.5 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 9.5 and the
Commercial Arbitration Rules or the Federal Arbitration Act, the terms of this Section
9.5 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 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 Seller, Buyer or any of their Affiliates and (ii) have
not less than seven (7) years experience in the energy industry. The hearing will be conducted
in Dallas, Texas and commence within thirty (30) days after the selection of the third
arbitrator. Seller, 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

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

16

 

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 Seller,
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.

     9.6 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.

     9.7 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 Party that any such collateral assignment has been foreclosed upon, such
non-assigning Party shall be entitled to deal exclusively with the Buyer or the Seller, 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 9.7, 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 Party hereto.

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

     9.9 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.

     9.10 Director and Officer Liability. The directors, managers, officers, partners
and stockholders of the Buyer, the Seller 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.

     9.11 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

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

17

 

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.

     9.12 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.

     9.13 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.

     9.14 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 the
second anniversary of the Closing Date, except that the representations and warranties contained
in Sections 4.1 (Organization), 4.2 (Authorization), 4.5 (Title to
Transferred Assets), 4.7 (Waivers and Disclaimers), 5.1 (Organization) and
5.2 (Authorization) 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 8.4(a) shall survive with respect to such claim until such claim is finally paid
or adjudicated.

ARTICLE X

INTERPRETATION

     10.1 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

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

18

 

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;

          (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).

     10.2 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]

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

19

 

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

	 	 	 	 	 
	 	BUYER:

HEP TULSA LLC

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

HOLLY REFINING & MARKETING — TULSA

LLC

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

Signature Page

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

Asset Purchase Agreement

 

 

EXHIBIT A

Form of License Agreement

A-1

 

	 	 	 
	STATE:

	 	Oklahoma
	COUNTY:

	 	Tulsa

Equipment Sites, Access and Rail Line License Agreement

(Tulsa Truck and Rail Equipment — Tulsa County, Oklahoma)

Holly Refining & Marketing — Tulsa LLC

to

HEP Tulsa LLC

     This Equipment Sites, Access and Rail Line License Agreement (Tulsa Truck and Rail Equipment
— Tulsa County, Oklahoma) (this “Agreement”), dated effective for all purposes as of 12:01 a.m.
Dallas, Texas time on August 1, 2009 (the “Effective Time”), is made and entered into by and
between Holly Refining & Marketing — Tulsa LLC, a Delaware limited liability company, whose
address is 100 Crescent Court, Suite 1600, Dallas, Texas 75201-6927 (“Licensor”), and HEP Tulsa
LLC, a Delaware limited liability company, whose address is 100 Crescent Court, Suite 1600, Dallas,
Texas 75201 (“Licensee”).

WITNESSETH:

     For and in consideration of the amounts paid by Licensee to Licensor and other good and
valuable consideration, the receipt and sufficiency of which Licensor hereby acknowledges, Licensor
hereby grants and conveys unto Licensee an exclusive license (the “Equipment Sites License”) to use
those certain tracts of real property more particularly described on
Exhibit A attached hereto (the
“Equipment Sites”) for the purpose of the use, operation, maintenance, construction,
re-construction and presence of the Equipment (as hereinafter defined). As used herein, the term
“Equipment” means, individually or collectively as the context may require, certain truck and rail
loading/unloading equipment now or hereafter situated on the Equipment Sites.

     Licensor hereby further grants and conveys unto Licensee a non-exclusive license (the “Access
License”) to use the roads, rights-of-way, entrances, exits, walkways, and parking areas situated
on that certain real property more particularly described on Exhibit B attached hereto (the “Refinery
Site”) for the purpose of vehicular and pedestrian ingress, egress and access, and all other areas
at the Refinery Site from time to time used for pedestrian and vehicular use, all to the extent
necessary to access any of the Equipment and so long as Licensee’s use of such License rights does
not unreasonably interfere with the use of the Refinery Site by Licensor; provided that the Access
License shall be subject to any reasonable rules, regulations and requirements imposed by Licensor
from time to time with respect to the use of the roads, rights-of-way, entrances, exits, walkways
and parking areas situated on the Refinery Site, including without limitation coordinating
Licensee’s use thereof.

     Licensor hereby further grants and conveys unto Licensee a conditional non-exclusive rail line
license (the “Rail Line License” and, together with the Equipment Sites License and the Access
License, the “Licenses”) to use the rail lines situated on the Refinery Site and owned by

			
	 	 	 
	1
	 	 

 

 

Licensor,
all to the extent necessary to utilize any Equipment, so long as Licensee’s use of such License
rights does not unreasonably interfere with the use of the Refinery Site by Licensor, and
subject to any reasonable rules, regulations and requirements imposed by Licensor with respect
to the use of the rail lines on the Refinery Site, including without limitation coordinating
Licensee’s use thereof; provided, however, the Rail Line License shall be suspended during any
period that the Throughput Agreement (defined below) is in effect, and during such periods Licensee
shall have no right to utilize the rail lines situated on the Refinery Site.

Licensor’s grant of the Licenses hereunder is subject to all Permitted Encumbrances related to the
Equipment and the Refinery Site, to the extent applicable. As used herein, the term “Permitted
Encumbrances” shall mean:

     (i) All legal requirements that govern or apply to the ownership, operation or transfer
of such property;

     (ii) Any lien for taxes that are not yet due and payable;

     (iii) Materialmen’s, mechanic’s, repairmen’s, employees’, contractors’, tax and other
similar liens or charges arising in the ordinary course of business for obligations that are
not delinquent or that will be paid and discharged in the ordinary course of business or, if
delinquent, that are being contested in good faith by appropriate action;

     (iv) Preferential rights to purchase and required third party consents to assignments
and similar agreements with respect to which waivers or consents are obtained from the
appropriate parties;

     (v) All rights reserved to or vested in any governmental, statutorial or public
authority to control or regulate any such property;

     (vi) All easements, restrictions, reservations and covenants now of record;

     (vii) Any matters that are waived without reservation in writing by Assignee or
otherwise released or satisfied by Assignor on or prior to the Effective Time; and

     (viii) Any encumbrances that do not materially impair the continued use and operation
of any of the Equipment to which they relate and do not materially affect the value of the
Equipment to which they relate.

     Licensee shall be permitted to pledge or collaterally assign its rights in and to this
Agreement to any lender or creditor of Licensee who has a security interest in all or any part of
the Equipment (each, together with such party’s successors, assigns, and designees, a “Licensee’s
Lender”). This Agreement shall be binding upon and shall inure to the benefit of Licensee and its
successors and assigns, including without limitation, any Licensee’s Lender, and Licensor agrees to
be bound under this Agreement to any such successor or assign, including any Licensee’s Lender, as
if the Licenses were originally granted to such successor or assign. Without limiting the
generality of the foregoing, if any Licensee’s Lender acquires all or any part of the Equipment
pursuant to a security interest in the Equipment granted by Licensee in favor of Licensee’s Lender,
whether by foreclosure, transfer in lieu of foreclosure or otherwise, then (i)

2

 

this Agreement shall be automatically assigned to such Licensee’s Lender with respect to the
Equipment acquired by such Licensee’s Lender and Licensor shall recognize such Licensee’s Lender as
the “Licensee” hereunder with respect to such Equipment, and (ii) if requested by Licensee’s
Lender, Licensor shall enter into a new license agreement with Licensee’s Lender with respect to
the Equipment acquired by such Licensee’s Lender on substantially the same terms and conditions as
this Agreement, including without limitation the right of the “Licensee” to convert this Agreement
into the Converted Easement (as hereinafter defined).

     This Agreement shall be binding upon and inure to the benefit of Licensor and its successors
and assigns to the extent such successors and assigns control, are controlled by, or are under
common control with, Licensor. Licensor agrees to give Licensee not less than 60 days’ prior
written notice of Licensor’s intent to sell or otherwise transfer its rights in and to all or any
part of the Refinery Site to a third-party. In the event of such a transfer to a third-party,
Licensor shall use commercially reasonable efforts to obtain the agreement of such third-party to
assume the obligations of Licensor under this Agreement with respect to any of the Equipment
affected by the transfer to such third-party.

     At any time after the expiration or termination of that certain Tulsa Equipment and Throughput
Agreement dated as of August 1, 2009, by and between Licensor and Licensee, as amended or modified
(the “Throughput Agreement”), Licensee shall have the right, in its sole discretion, to convert
this Agreement and the Licenses granted herein into a perpetual easement (the “Converted Easement”)
on the same terms and conditions as this Agreement, except that the Converted Easement shall be
perpetual in nature subject to the express termination provisions set forth herein. Upon
Licensee’s election, Licensor and Licensee shall execute and acknowledge such Converted Easement,
and thereafter Licensee shall have the right to record the Converted Easement in the real property
records of the county in which the Equipment Sites and Refinery Site are located.

     The Licenses granted hereunder are coupled with an interest. Accordingly, this Agreement may
not be terminated in whole or in part except (a) with the mutual consent of Licensor and Licensee,
(b) if Licensor purchases or otherwise acquires or obtains ownership of all or any part of the
Equipment, in which event this Agreement shall automatically terminate with respect to such
acquired Equipment, (c) if any Equipment is destroyed and not rebuilt, dismantled, removed, or
moved from the location on which it existed as of the Effective Time, in which event this Agreement
shall automatically terminate with respect to any such Equipment, (d) if Licensee (or its
successors or assigns) no longer owns all or any part of the Equipment for any other reason, in
which event this Agreement shall automatically terminate with respect to any such Equipment no
longer owned by Licensee (or its successors or assigns); or (e) if Licensee becomes fee title owner
of any Equipment Sites, in which event this Agreement shall automatically terminate with respect to
any Equipment situated on the Equipment Sites so owned by Licensee.

     Licensor and Licensee agree to execute, acknowledge and deliver to each other such additional
instruments, notices and documents, and to do all such other and further acts and things, as may be
reasonably necessary or useful to more fully and effectively evidence and effect the grant and
conveyance by Licensor to Licensee of the Licenses granted hereunder or intended to be so granted.
Without limiting the generality of the foregoing, if this Agreement (or

3

 

any Converted Easement) automatically terminates with respect to any or all of the Equipment,
Licensor shall be permitted, and Licensee hereby authorizes Licensor, to file or record any
instrument in any public records as Licensor deems to be appropriate evidencing such termination in
whole or in part of this Agreement; Licensee hereby acknowledges and agrees that any such
instrument does not need to be executed or notarized by Licensee to be effective.

     This Agreement shall be governed by and interpreted in accordance with the laws of the State
of Oklahoma without regard to any conflicts of law rule that would direct application of the laws
of another jurisdiction. All Exhibits attached hereto are hereby made a part hereof and
incorporated herein by this reference. References in such Exhibits to instruments on file in the
public records are made for all purposes. Unless provided otherwise, all recording references in
such Exhibits are to the appropriate records of the counties in which the Licenses are located.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument.

     Separate grants of certain parts of the Licenses may be executed on officially approved forms
by Licensor to Licensee in sufficient counterparts to satisfy applicable statutory and regulatory
requirements. Any such separate assignments or counterparts shall be deemed to contain all of the
exceptions, reservations, rights, titles, powers and privileges set forth herein as fully as though
they were set forth in each such assignment or counterpart. The interests conveyed by such
separate assignments or counterparts are the same, and not in addition to, the Licenses conveyed
herein.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

4

 

     EXECUTED effective for all purposes as of the Effective Time.

	 	 	 	 	 
	 	LICENSOR:

HOLLY REFINING & MARKETING — TULSA 

LLC, a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	David L. Lamp 	 
	 	 	Title:  	President 	 
	 

	 	 	 
	STATE OF TEXAS

	 	§
	 

	 	§
	COUNTY OF DALLAS

	 	§

     This instrument was acknowledged before me on                     , 2009 by David L. Lamp, President of
Holly Refining & Marketing — Tulsa LLC, a Delaware limited liability company, on behalf of said
limited liability company.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Notary Public, State of Texas 	 
	 	 	 
	 

[Signature Page to Equipment Sites and Access License Agreement]

 

 

	 	 	 	 	 
	 	LICENSEE:

HEP TULSA LLC, a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	David G. Blair 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 
	STATE OF TEXAS

	 	§
	 

	 	§
	COUNTY OF DALLAS

	 	§

     This instrument was acknowledged before me on                     , 2009 by David G. Blair, Senior Vice
President of HEP Tulsa LLC, a Delaware limited liability company, on behalf of said limited
liability company.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Notary Public, State of Texas 	 
	 	 	 
	 

List Of Exhibits:

Exhibit A —Equipment Sites

Exhibit B — Refinery Site

[Signature Page to Equipment Sites and Access License Agreement]

 

 

EXHIBIT A

EQUIPMENT SITES

Lube Oil Rail Rack

Legal Description

     A TRACT OF LAND SITUATED IN THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 11,
TOWNSHIP 19 NORTH, RANGE 12 EAST, IBM, TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:

     BEGINNING AT THE SOUTHWEST CORNER OF THIS TRACT WHICH LIES N01°32’08“W ALONG THE WEST LINE OF
SAID SECTION A DISTANCE OF 1893.74 FEET AND N88°27’52“E 261.85 FEET FROM THE SOUTHWEST CORNER OF
SAID SECTION; THEN N00°19’08“W 52.91 FEET TO THE NORTHWEST CORNER OF THIS TRACT; THEN N89°40’52“E
15.00 FEET TO AN INTERIOR CORNER OF THIS TRACT; THEN N00°19’08“W 6.00 FEET TO A CORNER OF THIS
TRACT; THEN N89°40’52“E 9.0 FEET TO A CORNER OF THIS TRACT; THEN S00°19’08“E 6.00 FEET TO AN
INTERIOR CORNER OF THIS TRACT; THEN N89°40’52’’E PARALLEL TO EXISTING RAIL ROAD TRACKS A DISTANCE
OF 339.08 FEET TO A POINT ON A CURVE TO THE LEFT; THEN NORTHEASTERLY ALONG THE ARC OF SAID CURVE
HAVING A RADIUS OF 356.35 FEET, A CHORD BEARS N69°07’44’’E A DISTANCE OF 215.13 FEET, THE ARC
DISTANCE OF 218.54 TO A CORNER ON THIS TRACT; THEN N44°39’23“E PARALLEL TO SAID RAILROAD TRACKS A
DISTANCE OF 15.49 FEET; THEN S44°34’23’’E 13.00 FEET TO THE MOST EASTERLY CORNER OF THIS TRACT AND
BEING A POINT ON A CURVE TO THE RIGHT; THEN SOUTHWESTERLY ALONG THE ARC OF SAID CURVE HAVING A
RADIUS OF 534.24 FEET, A CHORD BEARS S51°56’12“W A DISTANCE OF 148.75 FEET, THE ARC DISTANCE OF
149.23 FEET TO A CORNER ON THIS TRACT AND BEING A POINT ON A CURVE TO THE RIGHT; THEN SOUTHWESTERLY
ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 377.33 FEET, A CHORD BEARS S75°25’55“W A DISTANCE OF
158.55 FEET, THE ARC DISTANCE OF 159.74 FEET TO A CORNER ON THIS TRACT; THEN S89°40’52“W PARALLEL
TO SAID RAILROAD TRACKS A DISTANCE OF 313.24 FEET TO THE POINT OF BEGINNING AND CONTAINING 0.60
ACRES MORE OR LESS.

     As depicted in Drawing Number 1, shown on the next page.

A-1

 

Depiction

A-2

 

Wax Rail Rack

Legal Description

     A TRACT OF LAND SITUATED IN THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 10,
TOWNSHIP 19 NORTH, RANGE 12 EAST, IBM, TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:

     BEGINNING AT THE SOUTHWEST CORNER OF THIS TRACT WHICH LIES S88°31’26“W ALONG THE SOUTH LINE OF
SAID SECTION A DISTANCE OF 691.7 FEET AND N01°28’34“W 2010.63 FEET FROM THE SOUTHEAST CORNER OF
SAID SECTION; THEN N00°59’54“W 34.00 FEET TO THE NORTHWEST CORNER OF THIS TRACT; THEN N89°00’06“E
PARALLEL TO EXISTING RAILROAD TRACKS A DISTANCE OF 294.40 FEET TO THE NORTHEAST CORNER OF THIS
TRACT; THEN S00°59’54“E 34.00 FEET TO THE SOUTHEAST CORNER OF THIS TRACT; THEN S89°00’06“W PARALLEL
TO SAID RAILROAD TRACKS AT 137.40 FEET AN EXISTING BUILDING CORNER, IN ALL 294.40 FEET TO THE POINT
OF BEGINNING AND CONTAINING 0.23 ACRES MORE OR LESS.

As depicted in Drawing Number 2, shown on the next page.

A-3

 

Depiction

A-4

 

Black Oil Rail Rack

Legal Description

     A TRACT OF LAND SITUATED IN THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 10,
TOWNSHIP 19 NORTH, RANGE 12 EAST, IBM, TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:

     BEGINNING AT THE SOUTHWEST CORNER OF THIS TRACT WHICH LIES N88°31’26“E ALONG THE SOUTH LINE OF
SAID SECTION A DISTANCE OF 329.04 FEET AND N01°28’34“W 2861.75 FEET FROM THE SOUTH QUARTER CORNER
OF SAID SECTION; THEN N01°14’56“W 43.55 FEET TO THE NORTHWEST CORNER OF THIS TRACT; THEN
N88°45’04“E PARALLEL TO EXISTING RAILROAD TRACKS A DISTANCE OF 284.00 FEET TO THE NORTHEAST CORNER
OF THIS TRACT; THEN S01°14’56“E 43.55 FEET TO THE SOUTHEAST CORNER OF THIS TRACT; THEN S88°45’04“W
PARALLEL TO SAID RAILROAD TRACKS A DISTANCE OF 284.00 FEET TO THE POINT OF BEGINNING AND CONTAINING
0.28 ACRES MORE OR LESS.

As depicted in Drawing Number 3, shown on the next page.

A-5

 

Depiction

A-6

 

Lube Oil Truck Rack

Legal Description

     A TRACT OF LAND SITUATED IN THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 11,
TOWNSHIP 19 NORTH, RANGE 12 EAST, IBM, TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:

     BEGINNING AT THE SOUTHWEST CORNER OF THIS TRACT WHICH LIES N01°32’08“W ALONG THE WEST LINE OF
SAID SECTION A DISTANCE OF 1603.57 FEET AND N88°27’52“E 23.72 FEET FROM THE SOUTHWEST CORNER OF
SAID SECTION; THEN N00°23’48“W 101.00 FEET TO AN INTERIOR CORNER OF THIS TRACT; THEN N89°56’41“W
12.42 FEET A CORNER OF THIS TRACT; THEN N00°20’56“W 45.02 FEET TO THE NORTHWEST CORNER OF THIS
TRACT; THEN N89°01’35“E 103.22 FEET TO THE NORTHEAST CORNER OF THIS TRACT; THEN S00°34’14“E 147.43
FEET TO THE SOUTHEAST CORNER OF THIS TRACT; THEN S89°46’45“W 91.28 FEET TO THE POINT OF BEGINNING
AND CONTAINING 0.32 ACRES MORE OR LESS.

As shown in Drawing Number 4, shown on the next page.

A-7

 

Depiction

A-8

 

Extract Truck Rack

Legal Description

     A TRACT OF LAND SITUATED IN THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 10,
TOWNSHIP 19 NORTH, RANGE 12 EAST, IBM, TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:

     BEGINNING AT THE SOUTHEAST CORNER OF THIS TRACT WHICH LIES S88°31’26“W ALONG THE SOUTH LINE OF
SAID SECTION A DISTANCE OF 952.02 FEET AND N01°28’34“W 2606.48 FEET FROM THE SOUTHEAST CORNER OF
SAID SECTION; THEN S89°02’24“W 94.20 FEET TO THE SOUTHWEST CORNER OF THIS TRACT; THEN N00°57’36“W
29.00 FEET TO THE NORTHWEST CORNER OF THIS TRACT; THEN N89°02’24“E 94.20 FEET TO THE NORTHEAST
CORNER OF THIS TRACT; THEN S00°57’36’’E 29.00 FEET TO THE POINT OF BEGINNING AND CONTAINING 0.06
ACRES MORE OR LESS.

As depicted in Drawing Number 5, shown on the next page.

A-9

 

Depiction

A-10

 

Wax Truck Rack

Legal Description

     A TRACT OF LAND SITUATED IN THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 10,
TOWNSHIP 19 NORTH, RANGE 12 EAST, IBM, TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:

     BEGINNING AT THE SOUTHEAST CORNER OF THIS TRACT WHICH LIES S88°31’26“W ALONG THE SOUTH LINE OF
SAID SECTION A DISTANCE OF 665.37 FEET AND N01°28’34“W 2090.64 FEET FROM THE SOUTHEAST CORNER OF
SAID SECTION; THEN N89°53’03“W 29.16 FEET TO THE SOUTHWEST CORNER OF THIS TRACT; THEN N00°03’20“W
72.18 FEET TO THE NORTHWEST CORNER OF THIS TRACT; THEN S89°53’03“E 29.16 FEET TO THE NORTHEAST
CORNER OF THIS TRACT; THEN S00°03’20“E 72.18 FEET TO THE POINT OF BEGINNING AND CONTAINING 0.05
ACRES MORE OR LESS.

As depicted in Drawing Number 7, shown on the next page.

A-11

 

Depiction

A-12

 

Extract Rail Rack

Legal Description

     A TRACT OF LAND SITUATED IN THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 10,
TOWNSHIP 19 NORTH, RANGE 12 EAST, IBM, TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:

     BEGINNING AT A CORNER OF THIS TRACT WHICH LIES S88°31’26“W ALONG THE SOUTH LINE OF SAID
SECTION A DISTANCE OF 1017.18 FEET AND N01°28’34“W 2224.00 FEET FROM THE SOUTHEAST CORNER OF SAID
SECTION; THEN S89°04’59’’W 24.00 FEET TO A POINT ON A CURVE TO THE RIGHT; THEN SOUTHWESTERLY
PARALLEL TO RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 1559.00 FEET, A CHORD
BEARS S03°03’27“W A DISTANCE OF 204.55 FEET, THE ARC DISTANCE OF 204.70 FEET TO A POINT ON THIS
TRACT AND BEING A POINT ON A CURVE TO THE RIGHT; THEN SOUTHWESTERLY PARALLEL TO SAID RAILROAD
TRACKS ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 487.37 FEET, A CHORD BEARS S16°50’55“W A
DISTANCE OF 153.54 FEET, THE ARC DISTANCE OF 154.18 FEET TO A POINT ON THIS TRACT AND BEING A POINT
ON A CURVE TO THE RIGHT; THEN SOUTHWESTERLY PARALLEL TO SAID RAILROAD TRACKS ALONG THE ARC OF SAID
CURVE HAVING A RADIUS OF 986.95 FEET, A CHORD BEARS S25°46’14“W A DISTANCE OF 84.85 FEET, THE ARC
DISTANCE OF 84.88 FEET TO A POINT ON THIS TRACT AND BEING A POINT ON A CURVE TO THE RIGHT; THEN
SOUTHWESTERLY PARALLEL TO SAID RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF
187.24 FEET, A CHORD BEARS S28°58’59“W A DISTANCE OF 21.68 FEET, THE ARC DISTANCE OF 21.69 FEET TO
A POINT ON THIS TRACT AND BEING A POINT ON A CURVE TO THE LEFT; THEN SOUTHWESTERLY PARALLEL TO SAID
RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 478.06 FEET, A CHORD BEARS
S32°52’53“W A DISTANCE OF 44.90 FEET, THE ARC DISTANCE OF 44.92 FEET TO A POINT ON THIS TRACT AND
BEING A POINT ON A CURVE TO THE LEFT; THEN SOUTHWESTERLY PARALLEL TO SAID RAILROAD TRACKS ALONG THE
ARC OF SAID CURVE HAVING A RADIUS OF 287.83 FEET, A CHORD BEARS S20°42’10“W A DISTANCE OF 77.17
FEET, THE ARC DISTANCE OF 77.41 FEET TO A POINT ON THIS TRACT AND BEING A POINT ON A CURVE TO THE
LEFT; THEN SOUTHWESTERLY PARALLEL TO SAID RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A
RADIUS OF 1422.00 FEET, A CHORD BEARS S16°13’21“W A DISTANCE OF 77.13 FEET, THE ARC DISTANCE OF
77.14 FEET TO A POINT ON THIS TRACT AND BEING A POINT ON A CURVE TO THE LEFT; THEN SOUTHWESTERLY
PARALLEL TO SAID RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 726.13 FEET, A
CHORD BEARS S07°59’58’’W A DISTANCE OF 87.96 FEET, THE ARC DISTANCE OF 88.02 FEET TO A POINT ON
THIS TRACT; THEN N00°15’58“E 85.26 FEET TO A POINT ON THIS TRACT AND A POINT ON A CURVE TO THE
RIGHT; THEN NORTHEASTERLY PARALLEL TO SAID RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A
RADIUS OF 1417.30 FEET, A CHORD BEARS N16°07’21“E A DISTANCE OF 81.92 FEET, THE ARC DISTANCE OF

A-13

 

81.92 FEET TO A POINT ON THIS TRACT AND BEING A POINT ON A CURVE TO THE RIGHT;
THEN NORTHEASTERLY PARALLEL TO SAID RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF
298.83 FEET, A CHORD BEARS N23°43’15“E A DISTANCE OF 110.57 FEET, THE ARC DISTANCE OF 111.21 FEET
TO A POINT ON THIS TRACT AND BEING A POINT ON A CURVE TO THE LEFT; THEN NORTHEASTERLY PARALLEL TO
SAID RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 130.85 FEET, A CHORD BEARS
N32°45’18“E A DISTANCE OF 30.02 FEET, THE ARC DISTANCE OF 30.08 FEET TO A POINT ON THIS TRACT AND
BEING A POINT ON A CURVE TO THE LEFT; THEN NORTHEASTERLY PARALLEL TO SAID RAILROAD TRACKS ALONG THE
ARC OF SAID CURVE HAVING A RADIUS OF 1064.97 FEET, A CHORD BEARS N25°48’28“E A DISTANCE OF 89.65
FEET, THE ARC DISTANCE OF 89.67 FEET TO A POINT ON THIS TRACT AND BEING A POINT ON A CURVE TO THE
LEFT; THEN NORTHEASTERLY PARALLEL TO SAID RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A
RADIUS OF 476.26 FEET, A CHORD BEARS N16°51’25“E A DISTANCE OF 150.20 FEET, THE ARC DISTANCE OF
150.83 FEET TO A POINT ON THIS TRACT AND BEING A POINT ON A CURVE TO THE LEFT; THEN NORTHEASTERLY
PARALLEL TO SAID RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 1548.20 FEET, A
CHORD BEARS N01°04’11“E A DISTANCE OF 309.75 FEET, THE ARC DISTANCE OF 310.27 FEET TO A POINT ON
THIS TRACT; THEN N05°51’48“E PARALLEL TO SAID RAILROAD TRACKS A DISTANCE OF 184.09 FEET TO A POINT
ON THIS TRACT; THEN N84°08’12“E 21.00 FEET TO A POINT ON THIS TRACT; THEN S05°51’48“E PARALLEL TO
SAID RAILROAD TRACKS, A DISTANCE OF 164.13 FEET TO A POINT ON THIS TRACT; THEN N84°08’12“E 14.29
FEET TO A POINT ON THIS TRACT AND A POINT ON A CURVE TO THE RIGHT; THEN SOUTHEASTERLY PARALLEL TO
SAID RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 1583.07 FEET, A CHORD BEARS
S03°03’49“E A DISTANCE OF 130.18 FEET, THE ARC DISTANCE OF 130.22 FEET TO THE POINT OF BEGINNING
AND CONTAINING 0.37 ACRES MORE OR LESS.

As depicted in Drawing Number 8, shown on the next page.

A-14

 

Depiction

A-15

 

Bright Stock Rail Rack, Diesel Rail Rack, L70 Rail Rack (1 of 2)

Legal Description

     A TRACT OF LAND SITUATED IN THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 10,
TOWNSHIP 19 NORTH, RANGE 12 EAST, I.B.M., TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY
DESCRIBED AS FOLLOWS:

     BEGINNING AT THE SOUTHWEST CORNER OF THIS TRACT. A POINT ON A CURVE TO THE RIGHT, WHICH LIES
S88°31’26“W ALONG THE SOUTH LINE OF SAID SECTION A DISTANCE OF 983.65 FEET AND N01°28’34“W 383.08
FEET FROM THE SOUTHEAST CORNER OF SAID SECTION; THEN NORTHWESTERLY PARALLEL TO RAILROAD TRACKS
ALONG THE ARC OF A CURVE HAVING A RADIUS OF 598.23 FEET, A CHORD BEARS N50°45’44“W A DISTANCE OF
227.30 FEET, THE ARC DISTANCE OF 228.69 FEET TO A CORNER ON THIS TRACT AND A POINT ON A CURVE TO
THE RIGHT; THEN NORTHWESTERLY ALONG THE ARC OF A CURVE HAVING A RADIUS OF 363.91 FEET, A CHORD
BEARS N34°33’13“W A DISTANCE OF 100.86 FEET, THE ARC DISTANCE OF 101.18 FEET TO A CORNER ON THIS
TRACT AND A POINT ON A CURVE TO THE RIGHT; THEN NORTHWESTERLY PARALLEL TO RAILROAD TRACKS ALONG THE
ARC OF A CURVE HAVING A RADIUS OF 655.33 FEET, A CHORD BEARS N24°09’54“W A DISTANCE OF 118.72 FEET,
THE ARC DISTANCE OF 118.88 FEET TO A CORNER ON THIS TRACT AND A POINT ON A CURVE TO THE RIGHT;
THEN NORTHWESTERLY ALONG THE ARC OF A CURVE HAVING A RADIUS OF 1212.40 FEET, A CHORD BEARS
N20°53’35“W A DISTANCE OF 79.80 FEET, THE ARC DISTANCE OF 79.80 FEET TO THE NORTHWEST CORNER OF
THIS TRACT; THEN N78°02’59“E 18.48 FEET TO THE NORTHEAST CORNER OF THIS TRACT AND TO A POINT ON A
CURVE TO THE LEFT; THEN SOUTHEASTERLY PARALLEL TO RAILROAD TRACKS ALONG THE ARC OF A CURVE HAVING A
RADIUS OF 547.33 FEET, A CHORD BEARS S12°34’20“E A DISTANCE OF 15.77 FEET, THE ARC DISTANCE OF
15.77 FEET TO A CORNER ON THIS TRACT AND A POINT ON A CURVE TO THE LEFT; THEN SOUTHEASTERLY
PARALLEL TO RAILROAD TRACKS ALONG THE ARC OF A CURVE HAVING A RADIUS OF 597.85 FEET, A CHORD BEARS
S16°16’30“E A DISTANCE OF 61.72 FEET, THE ARC DISTANCE OF 61.75 FEET TO A CORNER ON THIS TRACT AND
A POINT ON A CURVE TO THE LEFT; THEN SOUTHEASTERLY PARALLEL TO RAILROAD TRACKS ALONG THE ARC OF A
CURVE HAVING A RADIUS OF 611.68 FEET, A CHORD BEARS S24°09’59“E A DISTANCE OF 117.15 FEET, THE ARC
DISTANCE OF 117.33 FEET TO A CORNER ON THIS TRACT AND A POINT ON A CURVE TO THE LEFT; THEN
SOUTHEASTERLY ALONG THE ARC OF A CURVE HAVING A RADIUS OF 353.22 FEET, A CHORD BEARS S34°33’09“E A
DISTANCE OF 98.33 FEET, THE ARC DISTANCE OF 98.65 FEET TO A CORNER ON THIS TRACT AND A POINT ON A
CURVE TO THE LEFT; THEN SOUTHEASTERLY PARALLEL TO RAILROAD TRACKS ALONG THE ARC OF A CURVE HAVING A
RADIUS OF 587.23 FEET, A CHORD BEARS S50°49’03“E A DISTANCE OF 224.74 FEET, THE ARC DISTANCE OF
226.14 FEET TO THE SOUTHEAST CORNER OF THIS TRACT; THEN S35°29’00“W 11.09 FEET TO THE POINT OF
BEGINNING AND CONTAINING 0.14 ACRES MORE OR LESS.

As
depicted in Drawing Number 9, 10, 11 (09110497_10), shown on the next page.

A-16

 

Depiction

A-17

 

Bright Stock Rail Rack, Diesel Rail Rack, L70 Rail Rack (2 of 2)

Legal Description

     A TRACT OF LAND SITUATED IN THE SOUTHEAST QUARTER OF SECTION 10, TOWNSHIP 19 NORTH; RANGE 12
EAST, IBM, TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

     BEGINNING AT THE SOUTHWEST CORNER OF THIS TRACT A POINT ON A CURVE TO THE RIGHT WHICH LIES
S88°31’26“W ALONG THE SOUTH LINE OF SAID SECTION A DISTANCE OF 1285.28 FEET AND N01°28’34“W 800.28
FEET FROM THE SOUTHEAST CORNER OF SAID SECTION; THEN NORTHWESTERLY PARALLEL TO RAILROAD TRACKS
ALONG THE ARC OF A CURVE HAVING A RADIUS OF 1214.33 FEET, A CHORD BEARS N15°28’53“W A DISTANCE OF
148.86 FEET, THE ARC DISTANCE OF 148.96 FEET TO A POINT ON THIS TRACT AND A POINT ON A CURVE TO THE
RIGHT; THEN NORTHWESTERLY PARALLEL TO SAID RAILROAD TRACKS ALONG THE ARC OF A CURVE HAVING A RADIUS
OF 1785.21 FEET, A CHORD BEARS N07°32’23“W A DISTANCE OF 330.39 FEET, THE ARC DISTANCE OF 330.86
FEET TO A POINT ON THIS TRACT; THEN N00°59’51“W 626.16 FEET TO THE MOST WESTERLY NORTHWEST CORNER
OF THIS TRACT; THEN N89°00’09“E 19.89 FEET TO AN INTERIOR CORNER OF THIS TRACT; THEN N00°24’17“W
241.44 FEET TO THE NORTHWEST CORNER OF THIS TRACT; THEN S89°44’02“E 97.80 FEET TO THE NORTHEAST
CORNER OF THIS TRACT; THEN S00°15’58“W 683.71 FEET TO A CORNER ON THIS TRACT; THEN S01°26’41“E
301.77 FEET TO A CORNER ON THIS TRACT AND A POINT ON A CURVE TO THE RIGHT; THEN SOUTHWESTERLY ALONG
THE ARC OF A CURVE HAVING A RADIUS OF 1058.04 FEET, A CHORD BEARS S02°25’02“W A DISTANCE OF 146.28
FEET, AN ARC DISTANCE OF 146.40 FEET TO A CORNER ON THIS TRACT AND A POINT ON A CURVE TO THE LEFT;
THEN SOUTHEASTERLY ALONG THE ARC OF A CURVE HAVING A RADIUS OF 460.82 FEET, A CHORD BEARS
S02°40’21“W A DISTANCE OF 146.79 FEET, THE ARC DISTANCE OF 147.42 FEET TO A CORNER ON THIS TRACT
AND A POINT ON A CURVE TO THE LEFT; THEN SOUTHEASTERLY ALONG THE ARC OF A CURVE HAVING A RADIUS OF
545.40 FEET, A CHORD BEARS S08°47’27“E A DISTANCE OF 56.24 FEET, THE ARC DISTANCE OF 56.26 FEET TO
THE SOUTHEAST CORNER OF THIS TRACT; THEN S78°02’59“W 22.50 FEET TO THE POINT OF BEGINNING AND
CONTAINING 2.89 ACRES MORE OR LESS.

As
depicted in Drawing Number 9, 10, 11 (09110497_11), shown on the next page.

A-18

 

Depiction

A-19

 

SW MEK Tank 702 Truck Rack

Legal Description

     A TRACT OF LAND SITUATED IN THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 11,
TOWNSHIP 19 NORTH, RANGE 12 EAST, IBM, TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:

     BEGINNING AT THE SOUTHWEST CORNER OF THIS TRACT WHICH LIES N01°32’08“W ALONG THE WEST LINE OF
SAID SECTION A DISTANCE OF 2258.99 FEET AND N88°27’52“E 306.37 FEET FROM THE SOUTHWEST CORNER OF
SAID SECTION; THEN N00°05’13“W 80.00 FEET TO THE NORTHWEST CORNER OF THIS TRACT; THEN N89°54’47“E
22.00 FEET TO THE NORTHEAST CORNER OF THIS TRACT; THEN S00°05’13“E 80.00 FEET TO THE SOUTHEAST
CORNER OF THIS TRACT; THEN S89°54’47“W 22.00 FEET TO THE POINT OF BEGINNING AND CONTAINING 0.04
ACRES MORE OR LESS.

As depicted in Drawing Number 13, shown on the next page.

A-20

 

Depiction

A-21

 

EXHIBIT B

REFINERY SITE

Tract A

The Southeast Quarter of the Southwest Quarter (SE/4 SW/4) lying North of the North line of the A.
V. & W. Railway Railroad Right-of-Way and Government Lots Four (4), Five (5), Six (6) and Seven
(7), Section Nine (9), Township Nineteen (19) North, Range Twelve (12) East of the Indian Base and
Meridian, Tulsa County, State of Oklahoma, according to the United States Government Survey
thereof.

Tract B

The West Half (W/2) of the Southeast Quarter (SE/4) lying North of the Right-of-Way of the St.
Louis and San Francisco Railroad, Section Nine (9), Township Nineteen (19) North, Range Twelve (12)
East of the Indian Base and Meridian, Tulsa County, State of Oklahoma, according to the United
States Government Survey thereof.

Tract C

The East Half (E/2) of the Southeast Quarter (SE/4) lying North of the Right-of-Way of the St.
Louis and San Francisco Railroad, Section Nine (9), Township Nineteen (19) North, Range Twelve (12)
East of the Indian Base and Meridian, Tulsa County, State of Oklahoma, according to the United
States Government Survey thereof.

TRACT D INTENTIONALLY OMITTED.

Tract E

Government Lots One (1) and Two (2), Section Ten (10), Township Nineteen (19) North, Range Twelve
(12) East of the Indian Base and Meridian, Tulsa County, State of Oklahoma, according to the United
States Government Survey thereof.

Tract F

Government Lot Three (3) and the Southeast Quarter of the Northwest Quarter (SE/4 NW/4) of Section
Ten (10), Township Nineteen (19) North, Range Twelve (12) East of the Indian Base and Meridian,
Tulsa County, State of Oklahoma, according to the United States Government Survey thereof.

Tract G

The North Half (N/2) of the Southwest Quarter (SW/4) of Section Ten (10), Township Nineteen (19)
North, Range Twelve (12) East of the Indian Base and Meridian, Tulsa County, State of Oklahoma,
according to the United States Government Survey thereof.

B-1

 

Tract H

All that part of the Southwest Quarter of the Southwest Quarter (SW/4 SW/4) of Section Ten (10),
Township Nineteen (19) North, Range Twelve (12) East of the Indian Base and Meridian, Tulsa County,
State of Oklahoma, lying North of the Northerly line of the St. Louis and San Francisco Railroad
Right-of-Way, LESS the following described tract, to-wit:

BEGINNING at a point of intersection of the West line of said Section 10 with the North line of the
St. Louis and San Francisco Railroad Right-of-Way; thence in a Easterly direction along the North
line of said Railroad Right-of-Way, a distance of 522.3 feet to a point; thence in a Northerly
direction parallel with the West line of said Section 10, a distance of 427 feet; thence in a
Westerly direction parallel with the South line of said Section 10, a distance of 522 feet to a
point on the West line of said Section 10; thence in a Southerly direction, along the West line of
said Section 10, a distance of 407.8 feet to the Point of Beginning.

Tract I

All of the Southeast Quarter of the Southwest Quarter (SE/4 SW/4) of Section Ten (10), Township
Nineteen (19) North, Range Twelve (12) East of the Indian Base and Meridian, Tulsa County, State of
Oklahoma, according to the United States Government Survey thereof.

Tract J

The Southwest Quarter (SW/4) of the Northeast Quarter (NE/4) and Government Lot 4 of Section Ten
(10), Township Nineteen (19) North, Range Twelve (12) East of the Indian Base and Meridian, Tulsa
County, State of Oklahoma, according to the United States Government Survey thereof.

Tract K

The North Half (N/2) of the Southeast Quarter (SE/4) and that part of the Southeast Quarter of the
Southeast Quarter (SE/4 SE/4) lying North of the Arkansas Valley and Western Railroad, right-of-way
Section Ten (10), Township Nineteen (19) North, Range Twelve (12) East of the Indian Base and
Meridian, Tulsa County, State of Oklahoma, according to the United States Government Survey
thereof.

Tract L

The Southwest Quarter of the Southeast Quarter (SW/4 SE/4) of Section Ten (10), Township Nineteen
(19) North, Range Twelve (12) East of the Indian Base and Meridian, Tulsa County, State of
Oklahoma, according to the United States Government Survey thereof.

Tract M

Two (2) tracts of land in the West Half (W/2) of Section Eleven (11), Township Nineteen (19) North,
Range Twelve (12) East of the Indian Base and Meridian, Tulsa County, State of Oklahoma, according
to the United States Government Survey thereof, being more particularly described as follows,
to-wit:

B-2

 

BEGINNING at a point on the South line of the 17th Street, in the City of Tulsa, Oklahoma, said
point being 1096.79 feet North of the Northerly Right-of-Way line of the Perry Sub-Main track and
25 feet East of the West line said Section 11; thence East along the South line of said West 17th
Street, a distance of 711.26 feet to the West Right-of-Way line of the St. Louis-San Francisco
Railway Co.; thence Southwesterly on said Right-of-Way line at a bearing of the South 9°54’22”
West, a distance of 622.19 feet, to its junction with the Northerly Right-of-Way line said Perry
Sub-Main track; thence South 26°28’54” West a distance of 0.00 feet; thence continuing
Southwesterly along the Northerly Right-of-Way line said Perry Sub-Main track on a curve to the
right having a radius of 894.88 feet, a distance of 793.28 feet to a point; said point being 372.64
feet North and 25 feet East of the Southwest comer of Section 11; thence North along the East line
of the South Union Avenue in the City of Tulsa, Oklahoma, bearing North 0°01’00” West a distance of
1096.79 feet to the Point of Beginning.

AND

BEGINNING at a point at the junction of the North line of West 17th Street in the City of Tulsa,
State of Oklahoma, and the West line of said Section 11, said point being 1539.39 feet North of the
Southwest corner of said Section 11; thence North along the West line of said Section 11 a distance
of 2004.61 feet to the Meander corner of Section 10 and 11, Township 19 North, Range 12 East;
thence Southeasterly along the U.S. Government Meander Line of the Arkansas River, at a bearing of
South 80°00’00” East a distance of 693.00 feet to a point; thence South 57°00’00” East a distance
of 667.29 feet to the intersection of said Meander line with the West Right-of-Way line of the St.
Louis-San Francisco Railway Co.; thence Southwesterly along said Railroad Right-of-Way line on a
bearing of South 27°39’12” West a distance of 254.99 feet; thence continuing along said West
Railroad Right-of-Way line on a curve to the left having a radius of 3038.39 feet a distance of
941.13 feet; thence South 9°54’22” West along said West Railroad Right-of-Way line a distance of
424.38 feet to a point of junction with the North line of said West 17th Street; thence Westerly
along the North line of said West 17th Street on a bearing of North 89°11’33” West a distance of
748.48 feet to the Point of Beginning.

B-3

 

EXHIBIT B

Form of Bill of Sale

B-1

 

BILL OF SALE AND ASSIGNMENT

	 	 	 	 	 
	STATE OF OKLAHOMA

	 	§	 	 
	 

	 	§
	 	KNOW ALL MEN BY THESE PRESENTS:
	COUNTY OF TULSA

	 	§	 	 

     THAT Holly Refining & Marketing — Tulsa LLC, a Delaware limited liability company
(“Grantor”), in consideration of the deliveries by the various parties to the Purchase
Agreement (as hereinafter defined) as provided for therein, the receipt and sufficiency of which
are hereby acknowledged, does hereby sell, convey, transfer, assign and deliver unto HEP Tulsa LLC,
a Delaware limited liability company (“Grantee”), pursuant to that certain Asset Purchase
Agreement, dated as of August 1, 2009 (the “Purchase Agreement”), by and between the
Grantor and the Grantee, all of its right, title and interest in and to those certain truck and
rail loading/unloading equipment located at the Tulsa Refinery (the “Transferred Assets”),
more particularly described in Exhibit A attached hereto and incorporated herein by
reference and situated on the real property described on Exhibit B attached hereto and
incorporated herein by reference. Capitalized terms used herein but not defined shall have the
meanings assigned to them in the Purchase Agreement.

     This Bill of Sale and Assignment shall be subject to the terms and conditions set forth in the
Purchase Agreement, the Ancillary Documents and the Omnibus Agreement and nothing contained in this
Bill of Sale and Assignment shall be construed to limit, terminate or expand the representations,
warranties and covenants set forth in the Purchase Agreement, the Ancillary Documents and the
Omnibus Agreement.

     Nothing in this Bill of Sale and Assignment, express or implied, is intended or shall be
construed to confer upon, or to give to, any person, firm, corporation or other entity other than
the Grantor, the Grantee, and their respective successors and assigns, any right or remedy under or
by reason of this Bill of Sale and Assignment or any term, covenant or condition hereof, and all
the terms, covenants, conditions, promises and agreements contained in this Bill of Sale and
Assignment shall be for the sole and exclusive benefit of the Grantor, the Grantee and their
respective successors and assigns.

     Except to the extent that the laws of the State of Oklahoma mandatorily apply to transfers of
assets located in such state, the terms and conditions of this Bill of Sale and Assignment shall be
governed and construed in accordance with the laws of the State of Delaware, without reference to
its conflict of law provisions.

[SIGNATURE PAGE FOLLOWS]

Holly Refining & Marketing — Tulsa LLC

HEP Tulsa LLC

Bill Of Sale And Assignment

 

 

     IN WITNESS WHEREOF, the undersigned has executed this Bill of Sale and Assignment as of this
1st day of August, 2009.

	 	 	 	 	 
	 	HOLLY REFINING & MARKETING — TULSA LLC

 	 
	 	By:  	 	 
	 	 	David L. Lamp 	 
	 	 	President 	 
	 

Holly Refining & Marketing  — Tulsa LLC

HEP Tulsa LLC

Signature Page to Bill Of Sale And Assignment

 

 

EXHIBIT A

Transferred Assets

#1. Lube Oil Rail Rack — A covered finished lube oil rail car loading rack consisting of
10 rail spots, 12 loading arms, two loading lines, a gear oil line, steam, air and water lines.
There are rail tracks located on both the north and south sides of this loading rack. The rack is
used to load multiple finished lube oil products. The rack is located in Section 11, Township 19
North, Range 12 East, I.B.M., Tulsa County, Oklahoma.

#2. Wax Rail Car Rack — An uncovered wax loading rack consisting of four rail spots.
The rack is served by two tracks. The rack is located in Section 10, Township 19 North, Range 12
East, I.B.M., Tulsa County, Oklahoma.

#3. Black Oil Rail Rack — An uncovered black oil rail car loading rack consisting of
four rail loading arms and a total of seven car loading capabilities. There are two tracks at this
rack which serve both the north and south sides of this rack. This rack is located in Section 10,
Township 19 North, Range 12 East, I.B.M., Tulsa County, Oklahoma.

#4. Lube Oil Truck Rack — A covered four bay lube oil loading rack. There are eight
loading spots and the capability to load two trucks at one time. There are scales on each bay,
however, the scale on bay two and four are not functional at this time. This rack is located in
Section 11, Township 19 North, Range 12 East, I.B.M., Tulsa County, Oklahoma.

#5. Extract Truck Rack — A covered single bay truck rack for loading finished extract
products. There is a scale at this loading rack. This rack is located in Section 10, Township 19
North, Range 12 East, I.B.M. Tulsa County, Oklahoma.

[NOTE: There is No #6.]

#7. Wax Truck Rack — A covered single bay truck rack for loading finish waxes. There is
a scale at this loading rack. This rack is located in Section 10, Township 19 North, Range 12
East, I.B.M., Tulsa County, Oklahoma.

#8. Extract Rail Rack — An uncovered four spot finished extract loading rack. This rack
is located in Section 10, Township 19 North, Range 12 East, I.B.M., Tulsa County, Oklahoma.

#9. Bright Stock Rail Rack — An uncovered bright stock rail car loading rack consisting
of eight rail spots and dual tracks with four loading arms.

#10. Diesel Rail Car Loading Rack — An uncovered diesel rail car loading rack with the
capability of loading seven cars through the four rail loading arms. This rack has dual tracks.

#11. L-70 Rail Rack — An uncovered rail car loading rack consisting of three rail spots.
This rack has dual tracks.

EXHIBIT A-1

 

 

#12. Soft Wax MEK Truck Rack — An uncovered truck loading rack with a single spot.
There is no scale at this location. This rack is located in Section 11, Township 19 North, Range
12 East, I.B.M., Tulsa County, Oklahoma.

EXHIBIT A-2

 

 

EXHIBIT B

Location of Transferred Assets

Lube Oil Rail Rack

Legal Description

     A TRACT OF LAND SITUATED IN THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 11,
TOWNSHIP 19 NORTH, RANGE 12 EAST, IBM, TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:

     BEGINNING AT THE SOUTHWEST CORNER OF THIS TRACT WHICH LIES N01°32’08“W ALONG THE WEST LINE OF
SAID SECTION A DISTANCE OF 1893.74 FEET AND N88°27’52“E 261.85 FEET FROM THE SOUTHWEST CORNER OF
SAID SECTION; THEN N00°19’08“W 52.91 FEET TO THE NORTHWEST CORNER OF THIS TRACT; THEN N89°40’52“E
15.00 FEET TO AN INTERIOR CORNER OF THIS TRACT; THEN N00°19’08“W 6.00 FEET TO A CORNER OF THIS
TRACT; THEN N89°40’52“E 9.0 FEET TO A CORNER OF THIS TRACT; THEN S00°19’08“E 6.00 FEET TO AN
INTERIOR CORNER OF THIS TRACT; THEN N89°40’52’’E PARALLEL TO EXISTING RAIL ROAD TRACKS A DISTANCE
OF 339.08 FEET TO A POINT ON A CURVE TO THE LEFT; THEN NORTHEASTERLY ALONG THE ARC OF SAID CURVE
HAVING A RADIUS OF 356.35 FEET, A CHORD BEARS N69°07’44’’E A DISTANCE OF 215.13 FEET, THE ARC
DISTANCE OF 218.54 TO A CORNER ON THIS TRACT; THEN N44°39’23“E PARALLEL TO SAID RAILROAD TRACKS A
DISTANCE OF 15.49 FEET; THEN S44°34’23’’E 13.00 FEET TO THE MOST EASTERLY CORNER OF THIS TRACT AND
BEING A POINT ON A CURVE TO THE RIGHT; THEN SOUTHWESTERLY ALONG THE ARC OF SAID CURVE HAVING A
RADIUS OF 534.24 FEET, A CHORD BEARS S51°56’12“W A DISTANCE OF 148.75 FEET, THE ARC DISTANCE OF
149.23 FEET TO A CORNER ON THIS TRACT AND BEING A POINT ON A CURVE TO THE RIGHT; THEN SOUTHWESTERLY
ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 377.33 FEET, A CHORD BEARS S75°25’55“W A DISTANCE OF
158.55 FEET, THE ARC DISTANCE OF 159.74 FEET TO A CORNER ON THIS TRACT; THEN S89°40’52“W PARALLEL
TO SAID RAILROAD TRACKS A DISTANCE OF 313.24 FEET TO THE POINT OF BEGINNING AND CONTAINING 0.60
ACRES MORE OR LESS.

As depicted in Drawing Number 1, shown on the next page.

EXHIBIT B-1

 

 

Depiction

EXHIBIT B-2

 

 

Wax Rail Rack

Legal Description

     A TRACT OF LAND SITUATED IN THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 10,
TOWNSHIP 19 NORTH, RANGE 12 EAST, IBM, TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:

     BEGINNING AT THE SOUTHWEST CORNER OF THIS TRACT WHICH LIES S88°31’26“W ALONG THE SOUTH LINE OF
SAID SECTION A DISTANCE OF 691.7 FEET AND N01°28’34“W 2010.63 FEET FROM THE SOUTHEAST CORNER OF
SAID SECTION; THEN N00°59’54“W 34.00 FEET TO THE NORTHWEST CORNER OF THIS TRACT; THEN N89°00’06“E
PARALLEL TO EXISTING RAILROAD TRACKS A DISTANCE OF 294.40 FEET TO THE NORTHEAST CORNER OF THIS
TRACT; THEN S00°59’54“E 34.00 FEET TO THE SOUTHEAST CORNER OF THIS TRACT; THEN S89°00’06“W PARALLEL
TO SAID RAILROAD TRACKS AT 137.40 FEET AN EXISTING BUILDING CORNER, IN ALL 294.40 FEET TO THE POINT
OF BEGINNING AND CONTAINING 0.23 ACRES MORE OR LESS.

As depicted in Drawing Number 2, shown on the next page.

EXHIBIT B-3

 

 

Depiction

EXHIBIT B-4

 

 

Black Oil Rail Rack

Legal Description

     A TRACT OF LAND SITUATED IN THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 10,
TOWNSHIP 19 NORTH, RANGE 12 EAST, IBM, TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:

     BEGINNING AT THE SOUTHWEST CORNER OF THIS TRACT WHICH LIES N88°31’26“E ALONG THE SOUTH LINE OF
SAID SECTION A DISTANCE OF 329.04 FEET AND N01°28’34“W 2861.75 FEET FROM THE SOUTH QUARTER CORNER
OF SAID SECTION; THEN N01°14’56“W 43.55 FEET TO THE NORTHWEST CORNER OF THIS TRACT; THEN
N88°45’04“E PARALLEL TO EXISTING RAILROAD TRACKS A DISTANCE OF 284.00 FEET TO THE NORTHEAST CORNER
OF THIS TRACT; THEN S01°14’56“E 43.55 FEET TO THE SOUTHEAST CORNER OF THIS TRACT; THEN S88°45’04“W
PARALLEL TO SAID RAILROAD TRACKS A DISTANCE OF 284.00 FEET TO THE POINT OF BEGINNING AND CONTAINING
0.28 ACRES MORE OR LESS.

As depicted in Drawing Number 3, shown on the next page.

EXHIBIT B-5

 

 

Depiction

EXHIBIT B-6

 

 

Lube Oil Truck Rack

Legal Description

     A TRACT OF LAND SITUATED IN THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 11,
TOWNSHIP 19 NORTH, RANGE 12 EAST, IBM, TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:

     BEGINNING AT THE SOUTHWEST CORNER OF THIS TRACT WHICH LIES N01°32’08“W ALONG THE WEST LINE OF
SAID SECTION A DISTANCE OF 1603.57 FEET AND N88°27’52“E 23.72 FEET FROM THE SOUTHWEST CORNER OF
SAID SECTION; THEN N00°23’48“W 101.00 FEET TO AN INTERIOR CORNER OF THIS TRACT; THEN N89°56’41“W
12.42 FEET A CORNER OF THIS TRACT; THEN N00°20’56“W 45.02 FEET TO THE NORTHWEST CORNER OF THIS
TRACT; THEN N89°01’35“E 103.22 FEET TO THE NORTHEAST CORNER OF THIS TRACT; THEN S00°34’14“E 147.43
FEET TO THE SOUTHEAST CORNER OF THIS TRACT; THEN S89°46’45“W 91.28 FEET TO THE POINT OF BEGINNING
AND CONTAINING 0.32 ACRES MORE OR LESS.

As shown in Drawing Number 4, shown on the next page.

EXHIBIT B-7

 

 

Depiction

EXHIBIT B-8

 

 

Extract Truck Rack

Legal Description

     A TRACT OF LAND SITUATED IN THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 10,
TOWNSHIP 19 NORTH, RANGE 12 EAST, IBM, TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:

     BEGINNING AT THE SOUTHEAST CORNER OF THIS TRACT WHICH LIES S88°31’26“W ALONG THE SOUTH LINE OF
SAID SECTION A DISTANCE OF 952.02 FEET AND N01°28’34“W 2606.48 FEET FROM THE SOUTHEAST CORNER OF
SAID SECTION; THEN S89°02’24“W 94.20 FEET TO THE SOUTHWEST CORNER OF THIS TRACT; THEN N00°57’36“W
29.00 FEET TO THE NORTHWEST CORNER OF THIS TRACT; THEN N89°02’24“E 94.20 FEET TO THE NORTHEAST
CORNER OF THIS TRACT; THEN S00°57’36’’E 29.00 FEET TO THE POINT OF BEGINNING AND CONTAINING 0.06
ACRES MORE OR LESS.

     As depicted in Drawing Number 5, shown on the next page.

EXHIBIT B-9

 

 

Depiction

EXHIBIT B-10

 

Wax Truck Rack

Legal Description

     A TRACT OF LAND SITUATED IN THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 10,
TOWNSHIP 19 NORTH, RANGE 12 EAST, IBM, TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:

     BEGINNING AT THE SOUTHEAST CORNER OF THIS TRACT WHICH LIES S88°31’26“W ALONG THE SOUTH LINE OF
SAID SECTION A DISTANCE OF 665.37 FEET AND N01°28’34“W 2090.64 FEET FROM THE SOUTHEAST CORNER OF
SAID SECTION; THEN N89°53’03“W 29.16 FEET TO THE SOUTHWEST CORNER OF THIS TRACT; THEN N00°03’20“W
72.18 FEET TO THE NORTHWEST CORNER OF THIS TRACT; THEN S89°53’03“E 29.16 FEET TO THE NORTHEAST
CORNER OF THIS TRACT; THEN S00°03’20“E 72.18 FEET TO THE POINT OF BEGINNING AND CONTAINING 0.05
ACRES MORE OR LESS.

As depicted in Drawing Number 7, shown on the next page.

EXHIBIT B-11

 

Depiction

EXHIBIT B-12

 

Extract Rail Rack

Legal Description

     A TRACT OF LAND SITUATED IN THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 10,
TOWNSHIP 19 NORTH, RANGE 12 EAST, IBM, TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:

     BEGINNING AT A CORNER OF THIS TRACT WHICH LIES S88°31’26“W ALONG THE SOUTH LINE OF SAID
SECTION A DISTANCE OF 1017.18 FEET AND N01°28’34“W 2224.00 FEET FROM THE SOUTHEAST CORNER OF SAID
SECTION; THEN S89°04’59’’W 24.00 FEET TO A POINT ON A CURVE TO THE RIGHT; THEN SOUTHWESTERLY
PARALLEL TO RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 1559.00 FEET, A CHORD
BEARS S03°03’27“W A DISTANCE OF 204.55 FEET, THE ARC DISTANCE OF 204.70 FEET TO A POINT ON THIS
TRACT AND BEING A POINT ON A CURVE TO THE RIGHT; THEN SOUTHWESTERLY PARALLEL TO SAID RAILROAD
TRACKS ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 487.37 FEET, A CHORD BEARS S16°50’55“W A
DISTANCE OF 153.54 FEET, THE ARC DISTANCE OF 154.18 FEET TO A POINT ON THIS TRACT AND BEING A POINT
ON A CURVE TO THE RIGHT; THEN SOUTHWESTERLY PARALLEL TO SAID RAILROAD TRACKS ALONG THE ARC OF SAID
CURVE HAVING A RADIUS OF 986.95 FEET, A CHORD BEARS S25°46’14“W A DISTANCE OF 84.85 FEET, THE ARC
DISTANCE OF 84.88 FEET TO A POINT ON THIS TRACT AND BEING A POINT ON A CURVE TO THE RIGHT; THEN
SOUTHWESTERLY PARALLEL TO SAID RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF
187.24 FEET, A CHORD BEARS S28°58’59“W A DISTANCE OF 21.68 FEET, THE ARC DISTANCE OF 21.69 FEET TO
A POINT ON THIS TRACT AND BEING A POINT ON A CURVE TO THE LEFT; THEN SOUTHWESTERLY PARALLEL TO SAID
RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 478.06 FEET, A CHORD BEARS
S32°52’53“W A DISTANCE OF 44.90 FEET, THE ARC DISTANCE OF 44.92 FEET TO A POINT ON THIS TRACT AND
BEING A POINT ON A CURVE TO THE LEFT; THEN SOUTHWESTERLY PARALLEL TO SAID RAILROAD TRACKS ALONG THE
ARC OF SAID CURVE HAVING A RADIUS OF 287.83 FEET, A CHORD BEARS S20°42’10“W A DISTANCE OF 77.17
FEET, THE ARC DISTANCE OF 77.41 FEET TO A POINT ON THIS TRACT AND BEING A POINT ON A CURVE TO THE
LEFT; THEN SOUTHWESTERLY PARALLEL TO SAID RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A
RADIUS OF 1422.00 FEET, A CHORD BEARS S16°13’21“W A DISTANCE OF 77.13 FEET, THE ARC DISTANCE OF
77.14 FEET TO A POINT ON THIS TRACT AND BEING A POINT ON A CURVE TO THE LEFT; THEN SOUTHWESTERLY
PARALLEL TO SAID RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 726.13 FEET, A
CHORD BEARS S07°59’58’’W A DISTANCE OF 87.96 FEET, THE ARC DISTANCE OF 88.02 FEET TO A POINT ON
THIS TRACT; THEN N00°15’58“E 85.26 FEET TO A POINT ON THIS TRACT AND A POINT ON A CURVE TO THE
RIGHT; THEN NORTHEASTERLY PARALLEL TO SAID RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A
RADIUS OF 1417.30 FEET, A CHORD BEARS N16°07’21“E A DISTANCE OF 81.92 FEET, THE ARC DISTANCE OF

EXHIBIT B-13

 

81.92 FEET TO A POINT ON THIS TRACT AND BEING A POINT ON A CURVE TO THE RIGHT; THEN
NORTHEASTERLY PARALLEL TO SAID RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF
298.83 FEET, A CHORD BEARS N23°43’15“E A DISTANCE OF 110.57 FEET, THE ARC DISTANCE OF 111.21 FEET
TO A POINT ON THIS TRACT AND BEING A POINT ON A CURVE TO THE LEFT; THEN NORTHEASTERLY PARALLEL TO
SAID RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 130.85 FEET, A CHORD BEARS
N32°45’18“E A DISTANCE OF 30.02 FEET, THE ARC DISTANCE OF 30.08 FEET TO A POINT ON THIS TRACT AND
BEING A POINT ON A CURVE TO THE LEFT; THEN NORTHEASTERLY PARALLEL TO SAID RAILROAD TRACKS ALONG THE
ARC OF SAID CURVE HAVING A RADIUS OF 1064.97 FEET, A CHORD BEARS N25°48’28“E A DISTANCE OF 89.65
FEET, THE ARC DISTANCE OF 89.67 FEET TO A POINT ON THIS TRACT AND BEING A POINT ON A CURVE TO THE
LEFT; THEN NORTHEASTERLY PARALLEL TO SAID RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A
RADIUS OF 476.26 FEET, A CHORD BEARS N16°51’25“E A DISTANCE OF 150.20 FEET, THE ARC DISTANCE OF
150.83 FEET TO A POINT ON THIS TRACT AND BEING A POINT ON A CURVE TO THE LEFT; THEN NORTHEASTERLY
PARALLEL TO SAID RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 1548.20 FEET, A
CHORD BEARS N01°04’11“E A DISTANCE OF 309.75 FEET, THE ARC DISTANCE OF 310.27 FEET TO A POINT ON
THIS TRACT; THEN N05°51’48“E PARALLEL TO SAID RAILROAD TRACKS A DISTANCE OF 184.09 FEET TO A POINT
ON THIS TRACT; THEN N84°08’12“E 21.00 FEET TO A POINT ON THIS TRACT; THEN S05°51’48“E PARALLEL TO
SAID RAILROAD TRACKS, A DISTANCE OF 164.13 FEET TO A POINT ON THIS TRACT; THEN N84°08’12“E 14.29
FEET TO A POINT ON THIS TRACT AND A POINT ON A CURVE TO THE RIGHT; THEN SOUTHEASTERLY PARALLEL TO
SAID RAILROAD TRACKS ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF 1583.07 FEET, A CHORD BEARS
S03°03’49“E A DISTANCE OF 130.18 FEET, THE ARC DISTANCE OF 130.22 FEET TO THE POINT OF BEGINNING
AND CONTAINING 0.37 ACRES MORE OR LESS.

As depicted in Drawing Number 8, shown on the next page.

EXHIBIT B-14

 

Depiction

EXHIBIT B-15

 

Bright Stock Rail Rack, Diesel Rail Rack, L70 Rail Rack (1 of 2)

Legal Description

     A TRACT OF LAND SITUATED IN THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 10,
TOWNSHIP 19 NORTH, RANGE 12 EAST, I.B.M., TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY
DESCRIBED AS FOLLOWS:

     BEGINNING AT THE SOUTHWEST CORNER OF THIS TRACT. A POINT ON A CURVE TO THE RIGHT, WHICH LIES
S88°31’26“W ALONG THE SOUTH LINE OF SAID SECTION A DISTANCE OF 983.65 FEET AND N01°28’34“W 383.08
FEET FROM THE SOUTHEAST CORNER OF SAID SECTION; THEN NORTHWESTERLY PARALLEL TO RAILROAD TRACKS
ALONG THE ARC OF A CURVE HAVING A RADIUS OF 598.23 FEET, A CHORD BEARS N50°45’44“W A DISTANCE OF
227.30 FEET, THE ARC DISTANCE OF 228.69 FEET TO A CORNER ON THIS TRACT AND A POINT ON A CURVE TO
THE RIGHT; THEN NORTHWESTERLY ALONG THE ARC OF A CURVE HAVING A RADIUS OF 363.91 FEET, A CHORD
BEARS N34°33’13“W A DISTANCE OF 100.86 FEET, THE ARC DISTANCE OF 101.18 FEET TO A CORNER ON THIS
TRACT AND A POINT ON A CURVE TO THE RIGHT; THEN NORTHWESTERLY PARALLEL TO RAILROAD TRACKS ALONG THE
ARC OF A CURVE HAVING A RADIUS OF 655.33 FEET, A CHORD BEARS N24°09’54“W A DISTANCE OF 118.72 FEET,
THE ARC DISTANCE OF 118.88 FEET TO A CORNER ON THIS TRACT AND A POINT ON A CURVE TO THE RIGHT;
THEN NORTHWESTERLY ALONG THE ARC OF A CURVE HAVING A RADIUS OF 1212.40 FEET, A CHORD BEARS
N20°53’35“W A DISTANCE OF 79.80 FEET, THE ARC DISTANCE OF 79.80 FEET TO THE NORTHWEST CORNER OF
THIS TRACT; THEN N78°02’59“E 18.48 FEET TO THE NORTHEAST CORNER OF THIS TRACT AND TO A POINT ON A
CURVE TO THE LEFT; THEN SOUTHEASTERLY PARALLEL TO RAILROAD TRACKS ALONG THE ARC OF A CURVE HAVING A
RADIUS OF 547.33 FEET, A CHORD BEARS S12°34’20“E A DISTANCE OF 15.77 FEET, THE ARC DISTANCE OF
15.77 FEET TO A CORNER ON THIS TRACT AND A POINT ON A CURVE TO THE LEFT; THEN SOUTHEASTERLY
PARALLEL TO RAILROAD TRACKS ALONG THE ARC OF A CURVE HAVING A RADIUS OF 597.85 FEET, A CHORD BEARS
S16°16’30“E A DISTANCE OF 61.72 FEET, THE ARC DISTANCE OF 61.75 FEET TO A CORNER ON THIS TRACT AND
A POINT ON A CURVE TO THE LEFT; THEN SOUTHEASTERLY PARALLEL TO RAILROAD TRACKS ALONG THE ARC OF A
CURVE HAVING A RADIUS OF 611.68 FEET, A CHORD BEARS S24°09’59“E A DISTANCE OF 117.15 FEET, THE ARC
DISTANCE OF 117.33 FEET TO A CORNER ON THIS TRACT AND A POINT ON A CURVE TO THE LEFT; THEN
SOUTHEASTERLY ALONG THE ARC OF A CURVE HAVING A RADIUS OF 353.22 FEET, A CHORD BEARS S34°33’09“E A
DISTANCE OF 98.33 FEET, THE ARC DISTANCE OF 98.65 FEET TO A CORNER ON THIS TRACT AND A POINT ON A
CURVE TO THE LEFT; THEN SOUTHEASTERLY PARALLEL TO RAILROAD TRACKS ALONG THE ARC OF A CURVE HAVING A
RADIUS OF 587.23 FEET, A CHORD BEARS S50°49’03“E A DISTANCE OF 224.74 FEET, THE ARC DISTANCE OF
226.14 FEET TO THE SOUTHEAST CORNER OF THIS TRACT; THEN S35°29’00“W 11.09 FEET TO THE POINT OF
BEGINNING AND CONTAINING 0.14 ACRES MORE OR LESS.

As depicted in Drawing Number 9, 10, 11 (09110497_10), shown on the next page.

EXHIBIT B-16

 

Depiction

EXHIBIT B-17

 

Bright Stock Rail Rack, Diesel Rail Rack, L70 Rail Rack (2 of 2)

Legal Description

     A TRACT OF LAND SITUATED IN THE SOUTHEAST QUARTER OF SECTION 10, TOWNSHIP 19 NORTH; RANGE 12
EAST, IBM, TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

     BEGINNING AT THE SOUTHWEST CORNER OF THIS TRACT A POINT ON A CURVE TO THE RIGHT WHICH LIES
S88°31’26“W ALONG THE SOUTH LINE OF SAID SECTION A DISTANCE OF 1285.28 FEET AND N01°28’34“W 800.28
FEET FROM THE SOUTHEAST CORNER OF SAID SECTION; THEN NORTHWESTERLY PARALLEL TO RAILROAD TRACKS
ALONG THE ARC OF A CURVE HAVING A RADIUS OF 1214.33 FEET, A CHORD BEARS N15°28’53“W A DISTANCE OF
148.86 FEET, THE ARC DISTANCE OF 148.96 FEET TO A POINT ON THIS TRACT AND A POINT ON A CURVE TO THE
RIGHT; THEN NORTHWESTERLY PARALLEL TO SAID RAILROAD TRACKS ALONG THE ARC OF A CURVE HAVING A RADIUS
OF 1785.21 FEET, A CHORD BEARS N07°32’23“W A DISTANCE OF 330.39 FEET, THE ARC DISTANCE OF 330.86
FEET TO A POINT ON THIS TRACT; THEN N00°59’51“W 626.16 FEET TO THE MOST WESTERLY NORTHWEST CORNER
OF THIS TRACT; THEN N89°00’09“E 19.89 FEET TO AN INTERIOR CORNER OF THIS TRACT; THEN N00°24’17“W
241.44 FEET TO THE NORTHWEST CORNER OF THIS TRACT; THEN S89°44’02“E 97.80 FEET TO THE NORTHEAST
CORNER OF THIS TRACT; THEN S00°15’58“W 683.71 FEET TO A CORNER ON THIS TRACT; THEN S01°26’41“E
301.77 FEET TO A CORNER ON THIS TRACT AND A POINT ON A CURVE TO THE RIGHT; THEN SOUTHWESTERLY ALONG
THE ARC OF A CURVE HAVING A RADIUS OF 1058.04 FEET, A CHORD BEARS S02°25’02“W A DISTANCE OF 146.28
FEET, AN ARC DISTANCE OF 146.40 FEET TO A CORNER ON THIS TRACT AND A POINT ON A CURVE TO THE LEFT;
THEN SOUTHEASTERLY ALONG THE ARC OF A CURVE HAVING A RADIUS OF 460.82 FEET, A CHORD BEARS
S02°40’21“W A DISTANCE OF 146.79 FEET, THE ARC DISTANCE OF 147.42 FEET TO A CORNER ON THIS TRACT
AND A POINT ON A CURVE TO THE LEFT; THEN SOUTHEASTERLY ALONG THE ARC OF A CURVE HAVING A RADIUS OF
545.40 FEET, A CHORD BEARS S08°47’27“E A DISTANCE OF 56.24 FEET, THE ARC DISTANCE OF 56.26 FEET TO
THE SOUTHEAST CORNER OF THIS TRACT; THEN S78°02’59“W 22.50 FEET TO THE POINT OF BEGINNING AND
CONTAINING 2.89 ACRES MORE OR LESS.

As depicted in Drawing Number 9, 10, 11 (09110497_11), shown on the next page.

EXHIBIT B-18

 

Depiction

EXHIBIT B-19

 

SW MEK Tank 702 Truck Rack

Legal Description

     A TRACT OF LAND SITUATED IN THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 11,
TOWNSHIP 19 NORTH, RANGE 12 EAST, IBM, TULSA COUNTY, OKLAHOMA AND BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:

     BEGINNING AT THE SOUTHWEST CORNER OF THIS TRACT WHICH LIES N01°32’08“W ALONG THE WEST LINE OF
SAID SECTION A DISTANCE OF 2258.99 FEET AND N88°27’52“E 306.37 FEET FROM THE SOUTHWEST CORNER OF
SAID SECTION; THEN N00°05’13“W 80.00 FEET TO THE NORTHWEST CORNER OF THIS TRACT; THEN N89°54’47“E
22.00 FEET TO THE NORTHEAST CORNER OF THIS TRACT; THEN S00°05’13“E 80.00 FEET TO THE SOUTHEAST
CORNER OF THIS TRACT; THEN S89°54’47“W 22.00 FEET TO THE POINT OF BEGINNING AND CONTAINING 0.04
ACRES MORE OR LESS.

As depicted in Drawing Number 13, shown on the next page.

EXHIBIT B-20

 

Depiction

EXHIBIT B-21

 

EXHIBIT C

Form of Tulsa Equipment and Throughput Agreement

(Incorporated by reference to Exhibit 10.3 of Holly Energy Partners, L.P.’s Current Report on

Form 8-K filed with the Securities and Exchange Commission on August 6, 2009.)

C-1

 

EXHIBIT D

Form of Restated Omnibus Agreement

(Incorporated by reference to Exhibit 10.2 of Holly Energy Partners, L.P.’s Current Report on

Form 8-K filed with the Securities and Exchange Commission on August 6, 2009.)

D-1

 

EXHIBIT E

Form of Purchase Option Agreement

(Incorporated by reference to Exhibit 10.4 of Holly Energy Partners, L.P.’s Current Report on

Form 8-K filed with the Securities and Exchange Commission on August 6, 2009.)

E-1

 

SCHEDULE 1.1

Transferred Assets

The following descriptions are of the above ground loading equipment located at the Tulsa Refinery
that are being transferred to the Buyer. The drawings attached to this Schedule 1.1 show the
detail of the rail track footage to be purchased by the Buyer. All other above ground piping and
improvements located on these drawings will be purchased by the Buyer.

#1. Lube Oil Rail Rack — A covered finished lube oil rail car loading rack consisting of 10 rail
spots, 12 loading arms, two loading lines, a gear oil line, steam, air and water lines. There are
rail tracks located on both the north and south sides of this loading rack. The rack is used to
load multiple finished lube oil products. The rack is located in Section 11, Township 19 North,
Range 12 East, I.B.M., Tulsa County, Oklahoma. See Drawing Number 1 for more detail.

#2. Wax Rail Car Rack — An uncovered wax loading rack consisting of four rail spots. The rack is
served by two tracks. The rack is located in Section 10, Township 19 North, Range 12 East, I.B.M.,
Tulsa County, Oklahoma. See Drawing Number 2 for more detail.

#3. Black Oil Rail Rack — An uncovered black oil rail car loading rack consisting of four rail
loading arms and a total of seven car loading capabilities. There are two tracks at this rack
which serve both the north and south sides of this rack. This rack is located in Section 10,
Township 19 North, Range 12 East, I.B.M., Tulsa County, Oklahoma. See Drawing Number 3 for more
detail.

#4. Lube Oil Truck Rack — A covered four bay lube oil loading rack. There are eight loading
spots and the capability to load two trucks at one time. There are scales on each bay, however,
the scale on bay two and four are not functional at this time. This rack is located in Section 11,
Township 19 North, Range 12 East, I.B.M., Tulsa County, Oklahoma. See Drawing Number 4 for more
detail.

#5. Extract Truck Rack — A covered single bay truck rack for loading finished extract products.
There is a scale at this loading rack. This rack is located in Section 10, Township 19 North,
Range 12 East, I.B.M. Tulsa County, Oklahoma. See Drawing Number 5 for more detail.

#6. [Intentionally omitted]

#7. Wax Truck Rack — A covered single bay truck rack for loading finish waxes. There is a scale
at this loading rack. This rack is located in Section 10, Township 19 North, Range 12 East,
I.B.M., Tulsa County, Oklahoma. See Drawing Number 7 for more detail.

#8. Extract Rail Rack — An uncovered four spot finished extract loading rack. This rack is
located in Section 10, Township 19 North, Range 12 East, I.B.M., Tulsa County, Oklahoma. See
Drawing Number 8 for more detail.

Schedule 1.1 - 1

 

#9. Bright Stock Rail Rack — An uncovered bright stock rail car loading rack consisting of eight
rail spots and dual tracks with four loading arms.

#10. Diesel Rail Car Loading Rack — An uncovered diesel rail car loading rack with the capability
of loading seven cars through the four rail loading arms. This rack has dual tracks.

#11. L-70 Rail Rack — An uncovered rail car loading rack consisting of three rail spots. This
rack has dual tracks.

Racks 9, 10, and 11 are contiguous racks served by dual tracks located in Section 10, Township 19
North, Range 12 East, I.B.M., Tulsa County, Oklahoma. See Drawings Numbered 9, 10 and 11 for more
detail.

#12. [Intentionally omitted]

#13. Soft Wax MEK Truck Rack — An uncovered truck loading rack with a single spot. There is no
scale at this location. This rack is located in Section 11, Township 19 North, Range 12 East,
I.B.M., Tulsa County, Oklahoma. See Drawing Number 13 for more detail.

The Parties agree that the Transferred Assets do not include the following loading racks located at
the Tulsa Refinery (which loading racks are owned by Seller or its affiliates):

	 	•	 	The Gasoline/Diesel Fuel/Jet Fuel truck loading rack
	 
	 	•	 	The Asphalt Resid rail car loading rack and the Asphalt Resid truck loading dock

Schedule 1.1 - 2

 

Drawing Number 1

Schedule 1.1 - 3

 

Drawing Number 2

Schedule 1.1 - 4

 

Drawing Number 3

Schedule 1.1 - 5

 

Drawing Number 4

Schedule 1.1 - 6

 

Drawing Number 5

Schedule 1.1 - 7

 

Drawing Number 7

Schedule 1.1 - 8

 

Drawing Number 8

Schedule 1.1 - 9

 

Drawing Number 9, 10 and 11

Schedule 1.1 - 10

 

Drawing Number 9, 10 and 11 (continued)

Schedule 1.1 - 11

 

Drawing Number 13

Schedule 1.1 - 12exv10w2

Exhibit 10.2

EXECUTION VERSION

 

 

SECOND AMENDED AND RESTATED OMNIBUS AGREEMENT

among

HOLLY CORPORATION

HOLLY ENERGY PARTNERS, L.P.

and

CERTAIN OF THEIR RESPECTIVE SUBSIDIARIES

 

 

 

 

EXECUTION VERSION

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	Article I	 	Definitions	 	 	2	 
	 
	 	1.1	 	Definitions	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	Article II	 	Business Opportunities	 	 	8	 
	 
	 	2.1	 	Restricted Businesses	 	 	8	 
	 
	 	2.2	 	Permitted Exceptions	 	 	8	 
	 
	 	2.3	 	Procedures	 	 	8	 
	 
	 	2.4	 	Scope of Prohibition	 	 	10	 
	 
	 	2.5	 	Enforcement	 	 	10	 
	 
	 	2.6	 	Limitation on Acquisitions of Subject Assets by Partnership Group Members	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	Article III	 	Indemnification	 	 	11	 
	 
	 	3.1	 	Environmental Indemnification	 	 	11	 
	 
	 	3.2	 	Limitations Regarding Environmental Indemnification	 	 	13	 
	 
	 	3.3	 	Right of Way Indemnification	 	 	13	 
	 
	 	3.4	 	Additional Indemnification	 	 	14	 
	 
	 	3.5	 	Indemnification Procedures	 	 	14	 
	 
	 	3.6	 	Limitation on Indemnification Obligations	 	 	16	 
	 
	 	3.7	 	Exclusion from Indemnification	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	Article IV	 	General and Administrative Expenses	 	 	16	 
	 
	 	4.1	 	General	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	Article V	 	Right of First Refusal	 	 	17	 
	 
	 	5.1	 	Holly Right of First Refusal: Prohibition on Transfer of	 	 	 	 
	 
	 	 	 	Refinery Related Assets	 	 	17	 
	 
	 	5.2	 	Procedures	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	Article VI	 	Holly Purchase Option	 	 	20	 
	 
	 	6.1	 	Option to Purchase Tulsa Transferred Assets	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	Article VII	 	Miscellaneous	 	 	20	 
	 
	 	7.1	 	Choice of Law	 	 	20	 
	 
	 	7.2	 	Arbitration Provision	 	 	20	 
	 
	 	7.3	 	Notice	 	 	21	 
	 
	 	7.4	 	Entire Agreement	 	 	22	 
	 
	 	7.5	 	Termination of Article II	 	 	22	 
	 
	 	7.6	 	Amendment or Modification	 	 	22	 
	 
	 	7.7	 	Assignment	 	 	23	 
	 
	 	7.8	 	Additional Partnership Entities	 	 	23	 
	 
	 	7.9	 	Counterparts	 	 	23	 
	 
	 	7.10	 	Severability	 	 	23	 
	 
	 	7.11	 	Further Assurances	 	 	23	 
	 
	 	7.12	 	Rights of Limited Partners	 	 	23	 
	 
	 	7.13	 	Headings	 	 	23	 

i

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	7.14	 	UNEV Option Agreement	 	 	23	 
	 
	 	7.15	 	Limitation of Damages	 	 	23	 

ii

 

SECOND AMENDED AND RESTATED

OMNIBUS AGREEMENT

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

RECITALS:

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

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

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

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

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

1

 

          WHEREAS, in connection with that certain Asset Purchase Agreement dated as of August 1, 2009,
by and between Holly Refining & Marketing — Tulsa LLC and HEP Tulsa LLC, pursuant to which Holly
Refining & Marketing — Tulsa LLC has agreed to transfer and convey to HEP Tulsa LLC, and HEP Tulsa
LLC has agreed to acquire, the Tulsa Transferred Assets (as defined herein), the Parties desire to
amend and restate the First Amended Omnibus Agreement in its entirety as follows:

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

ARTICLE I

Definitions

     1.1 Definitions.

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

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

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

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

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

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

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

     “Affiliate” is defined in the Partnership Agreement.

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

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

2

 

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

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

     “Assets” means all of the following assets conveyed, contributed, or otherwise
transferred by the Holly Entities to the Partnership Entities: (i) the 2004 Product Pipelines,
Terminal and Related Assets, (ii) the 8” and 10” Lovington/Artesia Intermediate Pipelines, (iii)
the 2008 Crude Pipelines, Tanks and Related Assets, (iv) the 16” Lovington/Artesia Intermediate
Pipeline, the (v) the Tulsa Transferred Assets.

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

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

3

 

     “Claimant” is defined in Section 7.2.

     “Closing Date” means the date of the closing of the Partnership’s initial public
offering of Common Units. For purposes of Article III, Closing Date shall mean (i) with
respect to the 8” and 10” Lovington/Artesia Intermediate Pipelines, the closing date of the
purchase of the 8” and 10” Lovington/Artesia Intermediate Pipelines by a Partnership Entity, (ii)
with respect to the 2008 Crude Pipelines, Tanks and Related Assets, the effective date of the
purchase of the 2008 Crude Pipelines, Tanks and Related Assets by a Partnership Entity, (iii) with
respect to the 16” Lovington/Artesia Intermediate Pipeline, the effective date of the purchase of
all of the limited liability company interests of Lovington-Artesia, L.L.C., a Delaware limited
liability company, by a Partnership Entity, and (iv) with respect to the Tulsa Transferred Assets,
the effective date of the purchase of the Tulsa Transferred Assets by a Partnership Entity.

     “Common Units” is defined in the Partnership Agreement.

     “Contribution Agreement” means that certain Contribution, Conveyance and Assumption
Agreement, dated as of July 13, 2004, among Holly, Navajo Pipeline, Holly GP, the General Partner,
the Partnership, the OLP GP, the Operating Partnership and certain other parties, together with the
additional conveyance documents and instruments contemplated or referenced thereunder.

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

     “Covered Environmental Losses” is defined in Section 3.1.

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

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

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

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

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

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

     “Governmental Authority” means any federal, state, local or foreign government or any
provincial, departmental or other political subdivision thereof, or any entity, body or authority

4

 

exercising executive, legislative, judicial, regulatory, administrative or other governmental
functions or any court, department, commission, board, bureau, agency, instrumentality or
administrative body of any of the foregoing.

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

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

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

     “Holly Entity” means any of the Holly Entities.

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

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

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

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

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

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

     “Limited Partner” is defined in the Partnership Agreement.

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

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

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

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

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

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

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

5

 

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

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

     “Partnership Entity” means any of the Partnership Entities.

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

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

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

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

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

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

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

     “Respondent” is defined in Section 7.2.

     “Restricted Businesses” is defined in Section 2.1.

     “Retained Assets” means the pipelines, terminals and other assets and investments
owned by any of the Holly Group Members on the date of the Contribution Agreement that were not

6

 

conveyed, contributed or otherwise transferred to the Partnership Entities pursuant to the
Contribution Agreement or otherwise.

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

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

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

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

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

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

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

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

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

     “Units” is defined in the Partnership Agreement.

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

7

 

ARTICLE II

Business Opportunities

     2.1 Restricted Businesses. For so long as a Holly Group Member controls the Partnership, and
except as permitted by Section 2.2, Holly GP and each of the Holly Group Members shall be
prohibited from engaging in or acquiring or investing in any business having assets engaged in the
following businesses (the “Restricted Businesses”): the ownership and/or operation of crude
oil pipelines or terminals, intermediate product pipelines or terminals, refined products pipelines
or terminals, truck racks or crude oil gathering systems in the continental United States.

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

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

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

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

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

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

     2.3 Procedures.

          (a) In the event that Holly GP or a Holly Group Member becomes aware of an opportunity to
acquire Subject Assets with a fair market value (as determined in good faith by the Board of
Directors of Holly) equal to or greater than $5 million, then subject to Section 2.3(b),
then as soon as practicable, Holly GP or such Holly Group Member shall notify

8

 

the General Partner of such opportunity and deliver to the General Partner, or provide the General
Partner access to, all information prepared by or on behalf of, or material information submitted
or delivered to, Holly GP or such Holly Group Member relating to such potential transaction. As
soon as practicable, but in any event within 30 days after receipt of such notification and
information, the General Partner, on behalf of the Partnership, shall notify Holly GP or the Holly
Group Member that either (i) the General Partner, on behalf of the Partnership, has elected not to
cause a Partnership Group Member to pursue the opportunity to purchase the Subject Assets, or (ii)
the General Partner, on behalf of the Partnership, has elected to cause a Partnership Group Member
to pursue the opportunity to purchase the Subject Assets. If, at any time, the General Partner
abandons such opportunity (as evidenced in writing by the General Partner following the request of
Holly GP or the Holly Group Member), Holly GP or the Holly Group Member under this Section
2.3(a) may pursue such opportunity. Any Subject Assets which are permitted to be acquired by
Holly GP or a Holly Group Member must be so acquired (i) within 12 months of the later to occur of
(A) the date that Holly GP or the Holly Group Member becomes able to pursue such acquisition in
accordance with the provisions of this Section 2.3(a), and (B) the date upon which all
required governmental approvals to consummate such acquisition have been obtained, and (ii) on
terms not materially more favorable to Holly GP or the Holly Group Member than were offered to the
Partnership. If either of these conditions are not satisfied, the opportunity must be reoffered to
the Partnership in accordance with this Section 2.3(a).

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

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

9

 

Group Member to purchase the Subject Assets, in which event the following procedures shall
apply.

               (ii) If Holly GP or the Holly Group Member and the General Partner within 60 days after
receipt by the General Partner of the Offer are able to agree on the fair market value of the
Subject Assets that are subject to the Offer and the other terms of the Offer including, without
limitation, the terms, if any, on which the Partnership Group will provide services to Holly GP or
the Holly Group Member to enable it to utilize the Subject Assets, a Partnership Group Member shall
purchase the Subject Assets for the agreed upon fair market value as soon as commercially
practicable after such agreement has been reached and, if applicable, enter into an agreement with
Holly GP or the Holly Group Member to provide services in a manner consistent with the Offer.

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

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

     2.5 Enforcement. Holly GP and the Holly Group Members agree and acknowledge that the
Partnership Group does not have an adequate remedy at law for the breach by Holly GP

10

 

and the Holly Group of the covenants and agreements set forth in this Article II, and
that any breach by Holly GP or the Holly Group of the covenants and agreements set forth in this
Article II would result in irreparable injury to the Partnership Group. Holly GP and the
Holly Group Members further agree and acknowledge that any Partnership Group Member may, in
addition to the other remedies which may be available to the Partnership Group, file a suit in
equity to enjoin Holly GP and the Holly Group from such breach, and consent to the issuance of
injunctive relief under this Agreement.

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

ARTICLE III

Indemnification

     3.1 Environmental Indemnification.

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

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

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

11

 

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

               (iii) the operation or ownership of any assets not transferred under this Agreement, including
but not limited to underground pipelines retained by the Seller Parties which serve the refineries
in Lovington, New Mexico, Artesia, New Mexico and Woods Cross, Utah or the tanks that are part of
the 2008 Crude Pipelines, Tanks and Related Assets (the “Transferred Tanks”) except to the
extent arising out of the negligent acts or omissions or willful misconduct of a member of the
Partnership Entities.

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

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

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

12

 

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

               (ii) any event or condition associated with the operation of the Assets by a Person other than
a Holly Entity or ownership and operation of the Assets by a Person other than a Holly Entity
(including, but not limited to, the presence of Hazardous Substances on, under, about or migrating
to or from the Assets or the disposal or release of Hazardous Substances generated by operation of
the Assets at non-Asset locations) except, where a Holly Entity is operating an Asset, to the
extent resulting from the negligent acts or omissions or willful misconduct of such Holly Entity
including, without limitation, (A) the cost and expense of any investigation, assessment,
evaluation, monitoring, containment, cleanup, repair, restoration, remediation, or other corrective
action required or necessary under Environmental Laws, (B) the cost or expense of the preparation
and implementation of any closure, remedial, corrective action, or other plans required or
necessary under Environmental Laws, and (C) the cost and expense for any environmental or Toxic
Tort pre-trial, trial, or appellate legal or litigation support work;

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

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

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

     3.3 Right of Way Indemnification. The Holly Entities shall indemnify, defend and hold
harmless the Partnership Entities from and against any losses, damages, liabilities, claims,
demands, causes of action, judgments, settlements, fines, penalties, costs, and expenses
(including, without limitation, court costs and reasonable attorney’s and expert’s fees) of any and
every kind or character, known or unknown, fixed or contingent, suffered or incurred by the
Partnership Entities to the extent arising out of (a) the failure of the applicable Partnership
Entity

13

 

to be the owner of such valid and indefeasible easement rights or fee ownership interests in
and to the lands on which any pipeline or related pump station, tank farm or equipment conveyed or
contributed or otherwise Transferred (including by way of a Transfer of the ownership interest of a
Person or by operation of law) to the applicable Partnership Entity on the Closing Date is located
as of the Closing Date; (b) the failure of the applicable Partnership Entity to have the consents,
licenses and permits necessary to allow any such pipeline referred to in clause (a) of this
Section 3.3 to cross the roads, waterways, railroads and other areas upon which any such
pipeline is located as of the Closing Date; and (c) the cost of curing any condition set forth in
clause (a) or (b) above that does not allow any Asset to be operated in accordance with Prudent
Industry Practice, to the extent that the Holly Entities are notified in writing of any of the
foregoing within 10 years after the Closing Date or, solely with respect to the 2008 Crude
Pipelines, Tanks and Related Assets, 15 years after the Closing Date, as applicable.

     3.4 Additional Indemnification.

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

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

     3.5 Indemnification Procedures.

14

 

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

          (b) The Indemnifying Party shall have the right to control all aspects of the defense of (and
any counterclaims with respect to) any claims brought against the Indemnified Party that are
covered by the indemnification under this Article III, including, without limitation, the
selection of counsel, determination of whether to appeal any decision of any court and the settling
of any such matter or any issues relating thereto; provided, however, that no such
settlement shall be entered into without the consent of the Indemnified Party unless it includes a
full release of the Indemnified Party from such matter or issues, as the case may be.

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

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

15

 

incurred by the Indemnified Party in recovering such amounts, shall reduce the amount such
Indemnified Party may recover under this Article III and if the Indemnified Party receives
any such amounts subsequent to an indemnification payment by the Indemnifying Party in respect of
such losses, then such Indemnified Party shall promptly reimburse the Indemnifying Party for any
payment made or expense incurred by such Indemnifying Party in connection with providing such
indemnification payment up to the amount so received by the Indemnified Party.

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

     3.6 Limitation on Indemnification Obligations.

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

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

     3.7 Exclusion from Indemnification. Notwithstanding anything in this Agreement to the
contrary, as used in Article III the definition of Assets shall not include the Tulsa
Transferred Assets.

ARTICLE IV

General and Administrative Expenses

     4.1 General

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

16

 

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

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

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

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

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

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

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

ARTICLE V

Right of First Refusal

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

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

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

17

 

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

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

     5.2 Procedures.

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

18

 

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

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

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

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

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

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

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

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

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

19

 

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

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

ARTICLE VI

Holly Purchase Option

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

ARTICLE VII

Miscellaneous

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

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

20

 

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

     7.3 Notice.

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

          Notices to the Holly Entities:

Holly Corporation

100 Crescent Court, Suite 1600

Dallas, Texas 75201

Attention: President

Email address: president@hollycorp.com

21

 

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

Holly Corporation

100 Crescent Court, Suite 1600

Dallas, Texas 75201

Attention: General Counsel

Email address: generalcounsel@hollycorp.com

          Notices to the Partnership Entities:

Holly Energy Partners, L.P.

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

100 Crescent Court, Suite 1600

Dallas, Texas 75201

Attention: Senior Vice President

Email address: SVP-HEP@hollyenergy.com

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

Holly Energy Partners, L.P.

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

100 Crescent Court, Suite 1600

Dallas, Texas 75201

Attention: General Counsel

Email address: generalcounsel@hollycorp.com

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

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

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

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

22

 

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

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

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

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

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

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

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

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

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

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

23

 

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

[Remainder of Page Intentionally Left Blank.]

24

 

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

	 	 	 	 	 
	 	HOLLY ENTITIES:

HOLLY CORPORATION

 	 
	 	By:  	/s/ Matthew P. Clifton
 	 
	 	 	Matthew P. Clifton 	 
	 	 	Chief Executive Officer 	 
	 
	 	HOLLY REFINING & MARKETING COMPANY — WOODS CROSS
(formerly Holly Refining & Marketing Company)

 	 
	 	By:  	/s/ Matthew P. Clifton
 	 
	 	 	Matthew P. Clifton 	 
	 	 	Chief Executive Officer 	 
	 
	 	LOREFCO, INC.

 	 
	 	By:  	/s/ Matthew P. Clifton
 	 
	 	 	Matthew P. Clifton 	 
	 	 	President 	 
	 
	 	NAVAJO REFINING COMPANY, L.L.C.

(formerly Navajo Refining Company, L.P.)

 	 
	 	By:  	/s/ Matthew P. Clifton
 	 
	 	 	Matthew P. Clifton 	 
	 	 	President 	 
	 

[Signature
Page 1 of 4 to Second Amended and Restated Omnibus Agreement]

 

 

	 	 	 	 	 
	 	NAVAJO PIPELINE CO., L.P.

 	 
	 	By:  	/s/ Matthew P. Clifton
 	 
	 	 	Matthew P. Clifton 	 
	 	 	President 	 
	 
	 	WOODS CROSS REFINING COMPANY, L.L.C.

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

HOLLY ENERGY PARTNERS, L.P.

 	 
	 	By:  	HEP Logistics Holdings, L.P.
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	                        /s/ David G. Blair
 	 
	 	 	David G. Blair 	 
	 	 	Senior Vice President 	 
	 
	 	HOLLY ENERGY PARTNERS — OPERATING, L.P.

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

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

[Signature
Page 2 of 4 to Second Amended and Restated Omnibus Agreement]

 

 

	 	 	 	 	 
	 	HEP LOGISTICS HOLDINGS, L.P.

 	 
	 	By:  	/s/ David G. Blair
 	 
	 	 	David G. Blair 	 
	 	 	Senior Vice President 	 
	 
	 	HEP LOGISTICS GP, L.L.C.

HEP MOUNTAIN HOME, L.L.C.

HEP PIPELINE GP, L.L.C.

HEP PIPELINE, L.L.C.

HEP REFINING GP, L.L.C.

HEP REFINING, L.L.C.

HEP WOODS CROSS, L.L.C.

LOVINGTON-ARTESIA, L.L.C.

 	 
	 	By:  	HOLLY ENERGY PARTNERS — OPERATING, L.P.
 	 
	 	 	Sole Member 	 
	 	 	 
	 	By:  	                         /s/ David G. Blair
 	 
	 	 	David G. Blair 	 
	 	 	Senior Vice President 	 
	 
	 	HEP NAVAJO SOUTHERN, L.P.

 	 
	 	By:  	/s/ David G. Blair
 	 
	 	 	David G. Blair 	 
	 	 	Senior Vice President 	 
	 
	 	HEP REFINING ASSETS, L.P.

 	 
	 	By:  	HEP Refining GP, L.L.C.
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	                         /s/ David G. Blair
 	 
	 	 	David G. Blair 	 
	 	 	Senior Vice President 	 
	 

[Signature Page 3 of 4 to Second Amended and Restated Omnibus Agreement]

 

 

	 	 	 	 	 
	 	HEP PIPELINE ASSETS, LIMITED PARTNERSHIP

 	 
	 	By:  	HEP Pipeline GP, L.L.C.
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	                /s/ David G. Blair
 	 
	 	 	David G. Blair 	 
	 	 	Senior Vice President 	 
	 

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

28

 

SCHEDULE I

Administrative Fee

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

General and Administrative Services

	 	(1)	 	executive services
	 
	 	(2)	 	finance, including treasury, and administration services
	 
	 	(3)	 	information technology services
	 
	 	(4)	 	legal services
	 
	 	(5)	 	health, safety and environmental services
	 
	 	(6)	 	human resources services

Schedule I-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}]]