Document:

exv10w3

EXHIBIT
10.3

AMENDMENT NO. 1 TO CREDIT AGREEMENT

May 28, 2010

Alon Refining Krotz Springs, Inc.

Park Central I

7616 LBJ Freeway, Suite 300

Dallas, Texas 75251

Attention: Chief Financial Officer

Re: Supply and Offtake Agreement and Letter of Credit Facility

Ladies and Gentlemen:

     Reference is made to the Credit Agreement, dated as of March 15, 2010 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”), among Alon
Refining Krotz Springs, Inc., a Delaware corporation (the “Company”), the Lenders from time
to time party thereto, and Bank Hapoalim B.M., as administrative agent for the Lenders (in such
capacity, the “Administrative Agent”). All capitalized terms used but not defined herein
shall have the meaning assigned to such terms in the Credit Agreement.

     Reference is also made to the Prepayment and Partial Release Letter, dated on or about May 28,
2010 (the “Payoff Letter”), between the Company and the Administrative Agent.

     The Company executed that certain Supply and Offtake Agreement, dated as of April 21, 2010 (as
the same may from time to time be amended, restated, supplemented or otherwise modified, the
“Supply and Offtake Agreement”), between the Company and J. Aron & Company
(“Aron”). As a condition precedent under the Supply and Offtake Agreement, the Company is
required to deliver, or cause to be delivered, an irrevocable standby letter of credit in favor of
Aron. To cause such letter of credit to be issued, the Company desires to enter into a Credit
Agreement, dated on or about the date hereof (as the same may from time to time be amended,
restated, supplemented or otherwise modified, the “LC Credit Agreement”), between the
Company and Goldman Sachs Bank USA (“Goldman”), pursuant to which Goldman shall, subject to
satisfaction of the terms and conditions thereof, issue a letter of credit for the account of the
Company.

     This Amendment No. 1 to Credit Agreement is executed in connection with the execution and
delivery of the Supply and Offtake Agreement and the LC Credit Agreement by the Company to permit
the transactions contemplated thereby.

     Section 1.01 of the Credit Agreement is hereby amended by inserting the following terms in
alphabetical order:

“Goldman” shall mean Goldman Sachs Bank USA, together with its successors
and assigns.

“J. Aron” shall mean J. Aron & Company, together with its successors and
assigns.”

“LC Credit Agreement” shall mean the Credit Agreement dated as of May 28,
2010, between the Borrower and Goldman, as issuing bank, pursuant to which
Goldman has committed to issue an irrevocable standby letter of credit for
the

 

 

account of the Borrower in a face amount up to $200,000,000, as the same may
from time to time be amended, restated, supplemented, replaced or otherwise
modified or refinanced in whole or in part.

“LC Documents” shall mean the Pledge and Security Agreement dated as of May
28, 2010, between the Borrower and Goldman, each letter of credit issued
under the LC Credit Agreement, and any and all other documents now existing
or entered into after the date hereof that grant a Lien on any assets of the
Borrower to secure obligations owing under the LC Credit Agreement or any
other document executed in connection therewith, as any of the foregoing may
from time to time be amended, restated, supplemented, replaced or otherwise
modified.

“Supply and Offtake Agreements” shall mean the Amended and Restated Supply
and Offtake Agreement dated as of May 26, 2010, between the Borrower and J.
Aron, together with all other documents executed in connection therewith
(each as amended, supplemented, restated, replaced or otherwise modified
from time to time), and any and all similar agreements executed after the
date hereof pursuant to which the Borrower agrees to purchase its supply of
crude from and sell refined crude to a third party.

     Section 3.16 of the Credit Agreement is hereby amended by deleting the last sentence thereof
in its entirety.

     Section 5.11 of the Credit Agreement is hereby amended by deleting the second sentence thereof
in its entirety.

     Section 6.01(a) of the Credit Agreement is hereby amended by (i) deleting “and” at the end of
clause (xi), (ii) deleting the period at the end of clause (xii) and replacing it with “; and”, and
(iii) inserting the following as clause (xiii):

          (xiii) Indebtedness created under the LC Credit Agreement.

     Section 6.02 of the Credit Agreement is hereby amended by (i) deleting “and” at the end of
clause (g), (ii) deleting the period at the end of clause (h) and replacing it with “; and”, and
(iii) inserting the following as clause (i):

          (i) Liens created under the LC Documents.

     Section 6.07(a) of the Credit Agreement is hereby amended by amending and restating Section
6.07(a) in its entirety as follows:

Neither the Borrower nor any of its subsidiaries will enter into any Hedging
Agreement except (A) Crack Spread Hedging Agreements, (B) Hedging Agreements
entered into to hedge or mitigate risks to which the Borrower or any of its
subsidiaries has actual exposure (other than in respect of Indebtedness of
the Borrower or any such subsidiary) and not for speculative purposes, (C)
Hedging Agreements entered into in order to effectively cap, collar or
exchange interest rates (from fixed to floating rates, from one floating
rate to another floating rate or otherwise) with respect to any
interest-bearing liability or

 

 

investment of the Borrower or any of its subsidiaries and not for
speculative purposes, and (D) Supply and Offtake Agreements.

     Section 6.08 of the Credit Agreement is hereby amended by inserting the following as Section
6.08(c):

Notwithstanding anything to the contrary in this Section 6.08, the Borrower
shall not make any Excess Cash Flow Offer (as defined in the Indenture)
under the Indenture if at the time the Borrower would be required to make
such Excess Cash Flow Offer under the Indenture (i) an RCF Availability
Deficit (as defined in the Indenture) shall have occurred as of the last day
of the month most recently ended prior to such time or would result
therefrom or (ii) an RCF Event of Default (as defined in the Indenture)
shall have occurred and be continuing.

     In addition, pursuant to the terms of the Payoff Letter, the Administrative Agent released its
Liens on all of the ABL Priority Collateral (as defined in the Credit Agreement). Accordingly, any
and all affirmative or negative covenants contained in any of the Loan Documents requiring (or
restricting) liens on, or lien perfection with respect to, ABL Priority Collateral are deemed void
and of no further force and affect.

     Except as set forth herein, the Credit Agreement and the other Loan Documents remain in full
force and effect and are unaffected hereby.

     This Amendment No. 1 to Credit Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York (without giving effect to the principles of conflicts of
law). This Amendment No. 1 to Credit Agreement may be executed in any number of counterparts, each
of which shall be an original, and all of which, when taken together, shall constitute one
agreement. Delivery of an executed signature page of this Amendment No. 1 to Credit Agreement by
facsimile transmission, electronic mail or other form of electronic transmission shall be effective
as delivery of a manually executed counterpart hereof

[Remainder of page intentionally left blank; signature page follows on next page]

 

 

	 	 	 	 	 
	 	Very truly yours,

BANK HAPOALIM B.M.

as the Administrative Agent and the sole Lender

 	 
	 	By:  	/s/ Maxine Levy
 	 
	 	 	Name:  	Maxine Levy 	 
	 	 	Title:  	First Vice President 	 
	 

	 	 	 	 	 
	 	Acknowledged and agreed to as of the date first

written above by:

ALON REFINING KROTZ SPRINGS, INC.

 	 
	 	By:  	/s/ Shai Even
 	 
	 	 	Name:  Shai Even 	 	 
	 	 	Title:  SVP & CFOexv10w4

EXHIBIT
10.4

AMENDMENT NO. 2 TO CREDIT AGREEMENT

          This AMENDMENT NO. 2 TO CREDIT AGREEMENT, dated as of June 15, 2010 (this
“Amendment”), is entered into by and among ALON REFINING KROTZ SPRINGS, INC., a Delaware
corporation (the “Borrower”), the financial institutions party hereto from time to time as
lenders (the “Lenders”), and BANK HAPOALIM B.M., a bank organized under the laws of Israel,
acting through its New York branch, as administrative agent (in such capacity, the
“Administrative Agent”) and as collateral agent (in such capacity, the “Collateral
Agent”) for the Lenders.

W I T N E S S E T H

          WHEREAS, the Borrower, the Lenders, the Administrative Agent and the Collateral Agent are
parties to the Credit Agreement dated as of March 15, 2010 (as amended by Amendment No. 1 to Credit
Agreement dated as of May 28, 2010, the “Credit Agreement”) pursuant to which the Lenders
provided a term loan facility (the “Facility”) in the form of a single Borrowing on the
Closing Date in an aggregate principal amount of $65,000,000, of which $35,000,000 of principal and
accrued interest thereon has been prepaid to date.

          WHEREAS, the Borrower, the Lenders , the Administrative Agent and the Collateral Agent wish to
amend the Credit Agreement to extend the Maturity Date to August 16, 2010;

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

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

     2. Amendment to Credit Agreement.

          Amendment and Restatement of Existing Definitions. The following defined term in
Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as
follows:

     “‘Maturity Date’ shall mean August 16, 2010, provided, however,
that if such date falls on a day other than a Business Day, the Maturity Date
shall be extended to the next succeeding Business Day with interest
continuing to accrue at the rate in effect on the date falling three months
from the Closing Date.”

     3. Conditions to Effectiveness. The effectiveness of this Amendment is subject to the
fulfillment of the following conditions (the date such conditions are fulfilled is hereafter
referred to as the “Second Amendment Effective Date”):

          (a) The representations and warranties contained in this Amendment shall be true and correct
on and as of the Second Amendment Effective Date as though made on and as of

 

 

such date, except to the extent that such representations or warranties expressly relate
solely to an earlier date (in which case such representations or warranties shall be true and
correct on and as of such date); and no Default or Event of Default shall have occurred and be
continuing on the Second Amendment Effective Date or would result from this Amendment becoming
effective in accordance with its terms.

          (b) The Administrative Agent shall have received on or before the Second Amendment Effective
Date a duly executed copy of this Amendment, and any other document reasonably requested by the
Administrative Agent.

          (c) An extension fee in the amount of $20,000 have been fully paid by Borrower on or before
the Second Amendment Effective Date.

          (d) All costs and expenses (including, without limitations, the Administrative Agent’s legal
fees) related to the negotiation, drafting and entering into this Amendment, have been fully paid
by Borrower on or before the Second Amendment Effective Date.

     4. Representations and Warranties. In addition to any and all representations and
warranties included in the Credit Agreement, which are hereby affirmed in all respects as of the
date hereof, to induce the other parties hereto to enter into this Amendment, the Borrower
represent and warrant to the Lenders, the Administrative Agent and the Collateral Agent that, as of
the Second Amendment Effective Date:

          (a) Organization; Powers. Each Obligor (a) is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization, (b) has all requisite power and
authority to own its property and assets and to carry on its business as now conducted and as
proposed to be conducted, (c) is qualified to do business in, and is in good standing in, every
jurisdiction where such qualification is required, except where the failure so to qualify could not
reasonably be expected to result in a Material Adverse Effect, and (d) has the power and authority
to execute, deliver and perform its obligations under this Amendment and each other agreement or
instrument contemplated thereby to which it is or will be a party.

          (b) Authorization. The execution, delivery and performance by each Obligor of this Amendment and
the other transactions contemplated hereby (collectively, the “Transactions”) (a) have been duly
authorized by all requisite corporate and, if required, stockholder action of such Obligor and (b)
will not (i) violate (A) any provision of law, statute, rule or regulation, or of the certificate
or articles of incorporation or other constitutive documents or by-laws, of such Obligor, (B) any
order of any Governmental Authority or (C) any provision of any indenture, agreement or other
instrument in respect of Material Indebtedness or any other material agreement to which such
Obligor is a party or by which any of them or any of their property is or may be bound, (ii) be in
conflict with, result in a breach of or constitute (alone or with notice or lapse of time or both)
a default under, or give rise to any right to accelerate or to require the prepayment, repurchase
or redemption of any obligation under any such indenture, agreement or other instrument in respect
of Material Indebtedness or any other material agreement or (iii) result in the creation or
imposition of any Lien upon or with respect to any property or assets now owned or hereafter
acquired by the Borrower or any of its subsidiaries (other than any Lien created hereunder or under
the Security Documents).

- 2 -

 

          (c) Enforceability. This Amendment has been duly executed and delivered by the Borrower and
constitutes, a legal, valid and binding obligation of the Borrower enforceable against the Borrower
in accordance with its terms (subject to applicable bankruptcy, reorganization, insolvency,
moratorium or similar laws affecting creditors’ rights generally and subject, as to enforceability,
to equitable principles of general application (regardless of whether enforcement is sought in a
proceeding in equity or at law)).

     5. Reservation of Rights. No action or acquiescence by the Administrative Agent, the
Collateral Agent and the Lenders, including, without limitation, this Amendment of, or the
acceptance of any payments under, the Credit Agreement, shall constitute a waiver of any Default or
Event of Default which may exist as of the Second Amendment Effective Date. Accordingly, the
Administrative Agent, the Collateral Agent and the Lenders reserve all of their rights under the
Credit Agreement at law and otherwise regarding any such Default or Event of Default.

     6. Continued Effectiveness of Loan Documents. Each of the parties hereto hereby
confirms and agrees that each Loan Document to which it is a party is, and shall continue to be, in
full force and effect and is hereby ratified and confirmed in all respects except that on and after
the Second Amendment Effective Date all references in any such Loan Document to “the Credit
Agreement”, “thereto”, “thereof”, “thereunder” or words of like import referring to the Credit
Agreement shall mean the Credit Agreement as amended by this Amendment.

     7. Miscellaneous.

          (a) This Amendment may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which shall be deemed to be an original, but all of which
taken together shall constitute one and the same agreement. Delivery of a counterpart hereby by
facsimile or electronic transmission shall be equally effective as delivery of a manually executed
counterpart hereof.

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

          (c) THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK.

          (d) THE BORROWER, THE ADMINISTRATIVE AGENT, THE COLLATERAL AGENT AND THE LENDERS EACH HEREBY
IRREVOCABLY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT
OF OR RELATING TO THIS AMENDMENT.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers as of the day and year first written above.

	 	 	 	 	 
	 	ALON REFINING KROTZ SPRINGS, INC.

 	 
	 	By:  	/s/ Shai Even
 	 
	 	 	Name:  	Shai Even 	 
	 	 	Title:  	SVP & CFO 	 
	 
	 	BANK HAPOALIM B.M., New York Branch,

individually and as Administrative Agent and Collateral 

Agent

 	 
	 	By:  	/s/ Maxine Levy
 	 
	 	 	Name:  	Maxine Levy 	 
	 	 	Title:  	First Vice President

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