Document:

ElDoradoThroughputAgreement-Exhibit101

EXECUTION VERSION

SECOND AMENDED AND RESTATED
PIPELINE DELIVERY, TANKAGE AND LOADING RACK  
THROUGHPUT AGREEMENT 
(EL DORADO)
This Second Amended and Restated Pipeline Delivery, Tankage and Loading Rack Throughput Agreement (this “Agreement”) is dated as of January 7, 2014, to be effective as of the Effective Time (as defined below), by and between Frontier El Dorado Refining LLC, a Delaware limited liability company (“Frontier El Dorado”), and El Dorado Logistics LLC, a Delaware limited liability company (“El Dorado Logistics”).  Each of Frontier El Dorado and El Dorado Logistics are individually referred to herein as a “Party” and collectively as the “Parties.”

RECITALS:
WHEREAS, pursuant to that certain LLC Interest Purchase Agreement dated effective as of November 1, 2011 (the “Purchase Agreement”) by and among HollyFrontier Corporation, a Delaware corporation (“HollyFrontier”), Frontier Refining LLC, a Delaware limited liability company, Frontier El Dorado, Holly Energy Partners – Operating, L.P., a Delaware limited partnership (“Purchaser”), and Holly Energy Partners, L.P., a Delaware limited partnership, Purchaser acquired all of the limited liability company interests in El Dorado Logistics and became the sole member thereof (the “Sale”);
WHEREAS, prior to the Sale, El Dorado Logistics acquired certain pipeline delivery, storage tank and loading rack assets located at Frontier El Dorado’s refinery in El Dorado, Kansas (the “Refinery”);
WHEREAS, in connection with the closing of the transactions contemplated under the Purchase Agreement, Frontier El Dorado and El Dorado Logistics entered into that certain Pipeline Delivery, Tankage and Loading Rack Throughput Agreement dated as of November 9, 2011 to be effective as of the Effective Time (the “Original El Dorado Throughput Agreement”);
WHEREAS, the Parties executed the First Amended and Restated Pipeline Delivery, Tankage and Loading Rack Throughput Agreement dated January 11, 2012 (the “First Amended and Restated El Dorado Throughput Agreement”) in order to clarify the application of the Loading Rack Tariff; and
WHEREAS, the Parties desire to amend the First Amended and Restated El Dorado Throughput Agreement as provided herein in order to provide for the construction of new storage tank assets at the Refinery by El Dorado Logistics and a related adjustment of the Tankage Base Tariff.
NOW, THEREFORE, in consideration of the covenants and obligations contained herein, the Parties hereby agree as follows:
US 1940288v.15

 
SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)

Section 1.Definitions
Capitalized terms used throughout this Agreement and not otherwise defined herein shall have the meanings set forth below.
“Affiliate” means, with to respect to a specified person, any other person controlling, controlled by or under common control with that first person.  As used in this definition, the term “control” includes (i) with respect to any person having voting securities or the equivalent and elected directors, managers or persons performing similar functions, the ownership of or power to vote, directly or indirectly, voting securities or the equivalent representing 50% or more of the power to vote in the election of directors, managers or persons performing similar functions, (ii). ownership of 50% or more of the equity or equivalent interest in any person and (iii) the ability to direct the business and affairs of any person by acting as a general partner, manager or otherwise.  Notwithstanding the foregoing, no HollyFrontier Entity will be considered an Affiliate of an HEP Entity, and no HEP Entity will be considered an Affiliate of a HollyFrontier Entity.
“Agreement” has the meaning set forth in the preamble 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, agreement, requirement, or other governmental restriction or any similar form of decision of, or any provision or condition of any permit, license or other operating authorization issued under any of the foregoing by, or any determination of, any Governmental Authority having or asserting jurisdiction over the matter or matters in question, whether now or hereafter in effect and in each case as amended (including, without limitation, all of the terms and provisions of the common law of such Governmental Authority), as interpreted and enforced at the time in question.
“Arbitrable Dispute” means any and all disputes, Claims, controversies and other matters in question between Frontier El Dorado, on the one hand, and El Dorado Logistics, 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 OPEX” means the amount set forth on Schedule IV attached hereto.
“bpd” means barrels per day.
“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” has the meaning set forth in Section 13(e).
“Closing Date” has the meaning for such term in the Purchase Agreement.

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
2

“Contract Quarter” means a three-month period that commences on January 1, April 1, July 1, or October 1 and ends on March 31, June 30, September 30, or December 31, respectively.
“Control” (including with correlative meaning, the term “controlled by”) means, as used with respect to any Person, the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.
“Crude Oil” means the direct liquid product of oil wells, oil processing plants, the indirect liquid petroleum products of oil or gas wells, oil sands or a mixture of such products, but does not include natural gas liquids or Refined Products.
“Deficiency Notice” has the meaning set forth in Section 9(a).
“Deficiency Payment” has the meaning set forth in Section 9(a).
“Disputed Deficiency Notice” has the meaning set forth in Section 9(a).
“Disputed Deficiency Payment” has the meaning set forth in Section 9(a).
“DRA” has the meaning set forth in Section 2(f).
“Effective Time” means 12:01 a.m., Dallas, Texas time, on November 1, 2011.
“El Dorado Assets” has the meaning given to such term in the Purchase Agreement; provided, however, that such term shall also include the New Tank as of the New Tank Commencement Date.
“El Dorado Logistics” has the meaning set forth in the preamble to this Agreement.
“El Dorado Logistics Payment Obligations” has the meaning set forth in Section 15(a).
“Environmental Law” shall have the meaning given such term in the Omnibus Agreement.
“Environmental Permits” has the meaning set forth in Section 2(q).
“Final Construction Costs” has the meaning set forth in Section 2(b)(iv).
“First Amended and Restated El Dorado Throughput Agreement” has the meaning set forth in the recitals.
“Force Majeure” means acts of God, strikes, lockouts or other industrial disturbances, acts of the public enemy, wars, blockades, insurrections, riots, storms, floods, washouts, arrests, the order of any Governmental Authority having jurisdiction while the same is in force and effect, civil disturbances, explosions, breakage, accident to machinery, storage tanks or lines of pipe, inability to obtain or unavoidable delay in obtaining material or equipment, and any other causes whether of the kind herein enumerated or otherwise not reasonably within the control of the Party claiming suspension and which by the exercise of due diligence such Party is unable to prevent or overcome.  Notwithstanding anything in this Agreement to the contrary, inability of a Party to make payments 

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
3

when due, be profitable or to secure funds, arrange bank loans or other financing, obtain credit or have adequate capacity or production (other than for reasons of Force Majeure) shall not be regarded as events of Force Majeure.
“Force Majeure Notice” has the meaning set forth in Section 4(c).
“Frontier El Dorado” has the meaning set forth in the preamble to this Agreement.
“Frontier El Dorado Payment Obligations” has the meaning set forth in Section 14(a).
“Governmental Authority” means any federal, state, local or foreign government or any provincial, departmental or other political subdivision thereof, or any entity, body or authority exercising executive, legislative, judicial, regulatory, administrative or other governmental functions or any court, department, commission, board, bureau, agency, instrumentality or administrative body of any of the foregoing.
“HEP Entities” means Holly Logistic Services, L.L.C., HEP Logistics Holdings, L.P. and the Partnership and its direct and indirect subsidiaries (including HEP Operating).
“HEP Operating” means Holly Energy Partners – Operating, L.P.
“HollyFrontier” has the meaning set forth in the recitals.
“HollyFrontier Entities” means HollyFrontier and its direct and indirect subsidiaries other than the HEP Entities.
“Heavy Products” means fuel oil, asphalt, coker feed, vacuum tower bottoms, atmospheric tower bottoms, pitch, or roofing flux.
“Intermediate Products” means non-finished intermediate products, including, but not limited to, high sulfur diesel fuel for DHT feed, jet fuel, naphtha for reformer feed, gas oil or LEF for FCC feed, reformate, light straight run, hydrogen, fuel gas, and sour fuel gas.
“Loading Rack” means the refined products truck loading rack and the propane truck loading rack located at the Refinery and more specifically described in Exhibit A attached hereto.
“Loading Rack Tariff” means the amount set forth on Schedule III attached hereto.
“LPG Products” means propane, refinery grade propylene, normal butane, and isobutane.
“Minimum Loading Rack Revenue Commitment” has the meaning set forth in Section 2(c)(i).
“Minimum Loading Rack Throughput” means 20,000 bpd of Products, in the aggregate, on average for each Contract Quarter.

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
4

“Minimum Pipeline Delivery Revenue Commitment” has the meaning set forth in Section 2(a)(i).
“Minimum Pipeline Delivery Throughput” means 120,000 bpd of Intermediate and Refined Products, in the aggregate, on average for each Contract Quarter.
“Minimum Tankage Revenue Commitment” has the meaning set forth in Section 2(b)(i).
“Minimum Tankage Throughput” means 140,000 bpd of Products, in the aggregate, on average for each Contract Quarter.
“New Tank” means that certain petroleum products storage tank, which tank is being constructed in accordance with the specifications set forth in Schedule V.
“New Tank Commencement Date” shall mean, with respect to the New Tank, the first day of the calendar month after the date on which, in the reasonable opinion of HEP Operating, such New Tank is mechanically complete, available for service and operating as expected in storing the Product for which such New Tank was designed, which date has been specified in written notice from El Dorado Logistics to Frontier El Dorado at least 30 days prior to such date.
“Omnibus Agreement” means the Ninth Amended and Restated Omnibus Agreement, dated as of January 7, 2014, to be effective as of January 7, 2014, by and among HollyFrontier, the Partnership and certain of their respective subsidiaries, as the same may be amended hereafter, from time-to-time.
“Operating Partnership” means Holly Energy Partners-Operating, L.P., a Delaware limited partnership.
“OPEX Recovery Amount” means an amount equal to (a) the difference between the percentage increase in PPI for a given year minus seven percent (7%), multiplied by (b) the then-current Assumed OPEX; provided, however, that in no event shall increased operating expenses related solely to the New Tank be considered in calculating the OPEX Recovery Amount.
“Original El Dorado Throughput Agreement” has the meaning set forth in the recitals.
“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.
“Parties” or “Party” has the meaning set forth in the preamble to this Agreement.
“Partnership” means Holly Energy Partners, L.P., a Delaware limited partnership.
“Pipeline Delivery Base Tariff” means the amount set forth under such term on Schedule I attached hereto.

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
5

“Pipeline Delivery Incentive Tariff” means the amount set forth under such term on Schedule I attached hereto.
“Pipeline Delivery Incentive Tariff Threshold” means 132,000 bpd of Intermediate and Refined Products, in the aggregate, on average for each Contract Quarter.
“PPI” has the meaning set forth in Section 2(a)(ii).
“Prime Rate” means the prime rate per annum announced by Union Bank, N.A., or if Union Bank, N.A. no longer announces a prime rate for any reason, the prime rate per annum announced by the largest U.S. bank measured by deposits from time to time as its base rate on corporate loans, automatically fluctuating upward or downward with each announcement of such prime rate.
“Products” means Refined Products, LPG Products, Intermediate Products and Heavy Products.
“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 Frontier El Dorado and its Affiliates in the performance of similar tasks or projects, or by El Dorado Logistics and its Affiliates in the performance of similar tasks or projects.
“Purchase Agreement” has the meaning set forth in the recitals to this Agreement.
“RCRA Order” means the administrative order to which the Refinery is or soon will be subject issued by the U.S. Environmental Protection Agency under Section 3008(h) of the Resource Conservation and Recovery Act.
“Refined Products” means gasoline, kerosene, ethanol and diesel fuel.
“Refinery” has the meaning set forth in the recitals.
“Refund” has the meaning set forth in Section 9(c).
“Respondent” has the meaning set forth in Section 13(e).
“Tankage” means the tanks set forth on Exhibit B attached hereto; provided, however, that such term shall include (i) Tanks 640 and 641 following conveyance of such tanks as provided in Section 9.2 of the Purchase Agreement, and (ii) the New Tank following the New Tank Commencement Date.
“Tankage Base Tariff” means the amount set forth on Schedule II attached hereto, as the same may be revised pursuant to this Agreement, including Section 2(b)(iii), Section 2(b)(iv), Section 2(m) and Section 2(n).
“Tankage Incentive Tariff” means the amount set forth on Schedule II attached hereto.

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
6

“Tankage Incentive Tariff Threshold” means 154,000 bpd of Products, in the aggregate, on average for each Contract Quarter.
“Term” has the meaning set forth in Section 6.
Section 2.    Agreement to Use Services Relating to Pipeline Delivery, Tankage and Loading Rack.
The Parties intend to be strictly bound by the terms set forth in this Agreement, which sets forth revenues to El Dorado Logistics to be paid by Frontier El Dorado and requires El Dorado Logistics to provide certain transportation, storage and loading services to Frontier El Dorado. The principal objective of El Dorado Logistics is for Frontier El Dorado to meet or exceed its obligations with respect to the Minimum Pipeline Delivery Revenue Commitment, to meet or exceed its obligations with respect to the Minimum Tankage Revenue Commitment, and to meet or exceed its obligations with respect to the Minimum Loading Rack Revenue Commitment.  The principal objective of Frontier El Dorado is for El Dorado Logistics to provide services to Frontier El Dorado in a manner that enables Frontier El Dorado to operate the Refinery.
(a)    Minimum Pipeline Delivery Revenue Commitment.  During the Term and subject to the terms and conditions of this Agreement, Frontier El Dorado agrees as follows:
(i)    Subject to Section 4, Frontier El Dorado shall pay El Dorado Logistics throughput fees for pipeline delivery services that will satisfy the Minimum Pipeline Delivery Revenue Commitment in exchange for El Dorado Logistics providing Frontier El Dorado a minimum of 120,000 barrels per day of aggregate delivery capacity from the Tankage.  The “Minimum Pipeline Delivery Revenue Commitment” shall be an amount of revenue to El Dorado Logistics for each Contract Quarter determined by multiplying the Minimum Pipeline Delivery Throughput by the Pipeline Delivery Base Tariff as such Pipeline Delivery Base Tariff may be revised pursuant to Section 2(a)(iii) or Section 2(m).  Notwithstanding the foregoing, in the event that the Closing Date is any date other than the first day of a Contract Quarter, then the Minimum Pipeline Delivery Revenue Commitment for the initial Contract Quarter shall be prorated based upon the number of days actually in such contract quarter and the initial Contract Quarter.
(ii)    Pipeline delivery throughput shall be determined by the shipments of Products by pipeline (and not over the Loading Racks) by the Refinery.  Frontier El Dorado will pay the Pipeline Delivery Base Tariff for each throughput barrel up to and including the Pipeline Delivery Incentive Tariff Threshold.  If the average throughput for any Contract Quarter exceeds the Pipeline Delivery Incentive Tariff Threshold attributable to such Contract Quarter then, for each throughput barrel in excess of the Pipeline Delivery Incentive Tariff Threshold, Frontier El Dorado shall pay El Dorado Logistics throughput fees in the amount of the Pipeline Delivery Incentive Tariff as such amount may be revised pursuant to Section 2(a)(iii) or Section 2(m).
(iii)    The Pipeline Delivery Base Tariff and Pipeline Delivery Incentive Tariff shall be adjusted on July 1 of each calendar year commencing on July 1, 2012, by an amount 

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
7

equal to the upper change in the annual change rounded to four decimal places of the Producers Price Index-Commodities-Finished Goods, (PPI), et al. (“PPI”), produced by the U.S. Department of Labor, Bureaus of Labor Statistics; provided that neither the Pipeline Delivery Base Tariff nor the Pipeline Delivery Incentive Tariff shall ever be increased by more than 3% for any such calendar year.  The series ID is WPUSOP3000 as of June 1, 2011 – located at http://www.bls.gov/data/.  The change factor shall be calculated as follows: annual PPI index (most current year) less annual PPI index (most current year minus 1) divided by annual PPI index (most current year minus 1).  An example for year 2009 change is: [PPI (2008) – PPI (2007)] / PPI (2007) or (177.1 – 166.6) / 166.6 or .063 or 6.3%.  If the PPI index change is negative in a given year then there will be no change in the Pipeline Delivery Base Tariff or Pipeline Delivery Incentive Tariff.  If the above index is no longer published, then Frontier El Dorado and El Dorado Logistics shall negotiate in good faith to agree on a new index that gives comparable protection against inflation, and the same method of adjustment for increases in the new index shall be used to calculate increases in the Pipeline Delivery Base Tariff and Pipeline Delivery Incentive Tariff.  If Frontier El Dorado and El Dorado Logistics are unable to agree, a new index will be determined by binding arbitration in accordance with Section 13(e), and the same method of adjustment for increases in the new index shall be used to calculate increases in the Pipeline Delivery Base Tariff and Pipeline Delivery Incentive Tariff.  To evidence the Parties’ agreement to each adjusted Pipeline Delivery Base Tariff and Pipeline Delivery Incentive Tariff, the Parties shall execute an amended, modified, revised or updated Schedule I and attach it to this Agreement.  Such amended, modified, revised or updated Schedule I shall be sequentially numbered (e.g. Schedule I-1, Schedule I-2, etc.), dated and appended as an additional schedule to this Agreement and shall replace the prior version of Schedule I in its entirety after its date of effectiveness.
(iv)    If Frontier El Dorado is unable to transport the volumes of Products required to meet the Minimum Pipeline Delivery Revenue Commitment as a result of El Dorado Logistics’ operational difficulties, prorationing, or the inability to provide sufficient capacity for the Minimum Pipeline Delivery Throughput, then the Minimum Pipeline Delivery Revenue Commitment applicable to the Contract Quarter during which Frontier El Dorado is unable to transport such volumes of Products will be reduced by an amount equal to: (A) the volume of Products that Frontier El Dorado was unable to transport (but not to exceed the Minimum Pipeline Delivery Throughput), as a result of El Dorado Logistics’ operational difficulties, prorationing or inability to provide sufficient capacity to achieve the Minimum Pipeline Delivery Throughput, multiplied by (B) the Pipeline Delivery Base Tariff.  This Section 2(a)(iv) shall not apply in the event El Dorado Logistics gives notice of a Force Majeure event in accordance with Section 4, in which case the Minimum Pipeline Delivery Revenue Commitment shall be suspended in accordance with and as provided in Section 4.
(b)    Minimum Tankage Revenue Commitment; Tankage Tariffs.  During the Term and subject to the terms and conditions of this Agreement, Frontier El Dorado agrees as follows:
(i)    Subject to Section 4, Frontier El Dorado shall pay El Dorado Logistics throughput fees associated with the Tankage that will satisfy the Minimum Tankage Revenue 

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
8

Commitment in exchange for El Dorado Logistics providing Frontier El Dorado a minimum of 140,000 bpd barrels of aggregate capacity in the Tankage.  The “Minimum Tankage Revenue Commitment” shall be an amount of revenue to El Dorado Logistics for each Contract Quarter determined by multiplying the Minimum Tankage Throughput by the Tankage Base Tariff applicable to such Contract Quarter as such Tankage Base Tariff may be revised pursuant to Section 2(b)(iii), Section 2(b)(iv), Section 2(m), and Section 2(n).  Notwithstanding the foregoing, in the event that the Closing Date is any date other than the first day of a Contract Quarter, then the Minimum Tankage Revenue Commitment for the initial Contract Quarter shall be prorated based upon the number of days actually in such contract quarter and the initial Contract Quarter.  In the event that the Tankage Base Tariff is changed and such change is effective on any date other than the first day of a Contract Quarter, then the Minimum Tankage Revenue Commitment for such Contract Quarter shall be calculated by applying the prior Tankage Base Tariff to the portion of the Contract Quarter occurring before the date of the change and the Tankage Base Tariff as changed to the portion of the Contract Quarter occurring on and after the date of the change.  Subject to (i) any Applicable Law and (ii) technical specifications of the Tankage, Frontier El Dorado may request that El Dorado Logistics change the service of any of the Tankage from storage of one Product to storage of a different Product.  If El Dorado Logistics agrees to such request, Frontier El Dorado shall indemnify and hold El Dorado Logistics harmless from and against all costs and expenses associated with any such changing of service including but not limited to costs of complying with any Applicable Law affecting such change of service.
(ii)    Tankage throughput shall be determined by the sum of Products shipped by the Refinery but not including shipments of coke and sulfur.  For the avoidance of doubt, no Tankage throughput fees shall be paid for movements of Products within the Refinery.  Frontier El Dorado shall pay the Tankage Base Tariff for each throughput barrel up to and including the Tankage Incentive Tariff Threshold.  If the average throughput for any Contract Quarter exceeds the Tankage Incentive Tariff Threshold attributable to such Contract Quarter then, for each throughput barrel in excess of the Tankage Incentive Tariff Threshold, Frontier El Dorado shall pay El Dorado Logistics throughput fees in the amount of the Tankage Incentive Tariff as such amount may be revised pursuant to Section 2(b)(iii) or Section 2(m).  
(iii)    The Tankage Base Tariff and Tankage Incentive Tariff shall each be adjusted on July 1 of each calendar year commencing on July 1, 2012, by an amount equal to the upper change in the annual change rounded to four decimal places of the PPI following the same procedure as set forth in Section 2(a)(iii) above (including the provisions regarding binding arbitration); provided that the Tankage Base Tariff and Tankage Incentive Tariff shall never be increased by more than 3% for any such calendar year.  To evidence the Parties’ agreement to each adjusted Tankage Base Tariff and Tankage Incentive Tariff, the Parties shall execute an amended, modified, revised or updated Schedule II and attach it to this Agreement.  Such amended, modified, revised or updated Schedule II shall be sequentially numbered (e.g. Schedule II-1, Schedule II-2, etc.), dated and appended as an additional schedule to this Agreement and shall replace the prior version of Schedule II in its entirety after its date of effectiveness.

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
9

(iv)    El Dorado Logistics shall use its commercially reasonable efforts to construct the New Tank in accordance with the specifications set forth on Schedule V; provided that if El Dorado Logistics should fail to complete the New Tank or if the New Tank Commencement Date does not occur for the New Tank for a reason related to the fault of El Dorado Logistics or a matter that is within or under the control of El Dorado Logistics, El Dorado Logistics shall bear all costs, liabilities and expenses with respect to such incomplete New Tank, and if El Dorado Logistics should fail to complete the New Tank or if the New Tank Commencement Date does not occur for the New Tank for any other reason, Frontier El Dorado shall reimburse El Dorado Logistics for all costs, liabilities and expenses incurred by El Dorado Logistics with respect to such incomplete New Tank.  Promptly following the New Tank Commencement Date, El Dorado Logistics will deliver a written certification to Frontier El Dorado certifying the final aggregate construction costs for the New Tank (the “Final Construction Cost”).  From and after the New Tank Commencement Date, the Tankage Base Tariff shall be increased by an amount per barrel equal to: 
	
	
	

Final Construction Cost

	0.9 x 8.1928 x Minimum Tankage Throughput x 365

 
For example, if the Final Construction Costs = $1,500,000, the per barrel increase in the Tankage Base Tariff would be calculated as follows:
$1,500,000/(0.9 x 8.1928 x 140,000 x 365) = $0.0040
Additionally, promptly following the New Tank Commencement Date, the Parties shall execute an amended Exhibit B reflecting the addition of the New Tank and attach it to this Agreement.  Such amended Exhibit B shall be numbered Exhibit B-1, dated and appended as an additional schedule to this Agreement and shall replace the prior version of Exhibit B in its entirety after its date of effectiveness.
(v)    If Frontier El Dorado is unable to deliver to the Tankage the volumes of Refined Products required to meet the Minimum Tankage Revenue Commitment as a result of El Dorado Logistics’ operational difficulties, prorationing or the inability to provide sufficient capacity, then the Minimum Tankage Revenue Commitment applicable to the Contract Quarter during which Frontier El Dorado is unable to deliver such volumes of Refined Products will be reduced by an amount equal to: (A) the volume of Refined Products that Frontier El Dorado was unable to deliver to the Tankage (but not to exceed the Minimum Tankage Throughput), as a result of El Dorado Logistics’ operational difficulties, prorationing or inability to provide sufficient capacity to achieve the Minimum Tankage Throughput, multiplied by (B) the Tankage Base Tariff.  This Section 2(b)(v) shall not apply in the event El Dorado Logistics gives notice of a Force Majeure event in accordance with Section 4, in which case the Minimum Tankage Revenue Commitment shall be suspended in accordance with and as provided in Section 4.

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
10

(c)    Minimum Loading Rack Revenue Commitment.
(i)    Subject to Section 4, Frontier El Dorado shall pay El Dorado Logistics throughput fees associated with the Loading Racks that will satisfy the Minimum Loading Rack Revenue Commitment in exchange for El Dorado Logistics providing Frontier El Dorado a minimum of 20,000 barrels per day of aggregate capacity at the Loading Racks.  The “Minimum Loading Rack Revenue Commitment” shall be an amount of revenue to El Dorado Logistics for each Contract Quarter determined by multiplying the Minimum Loading Rack Throughput by the Loading Rack Tariff as such Loading Rack Tariff may be revised pursuant to Section 2(c)(ii) or Section 2(m).  Frontier El Dorado will pay El Dorado Logistics the Loading Rack Tariff for all quantities of Products or other materials loaded at the Loading Racks or the asphalt loading rack and any Products or other materials shipped using the weight scales. Notwithstanding the foregoing, in the event that the Closing Date is any date other than the first day of a Contract Quarter, then the Minimum Loading Rack Revenue Commitment for the initial Contract Quarter shall be prorated based upon the number of days actually in such contract quarter and the initial Contract Quarter.
(ii)    The Loading Rack Tariff shall be adjusted on July 1 of each calendar year commencing on July 1, 2012, by an amount equal to the upper change in the annual change rounded to four decimal places of the PPI following the same procedure as set forth in Section 2(a)(iii) above (including the provisions regarding binding arbitration); provided that the Loading Rack Tariff shall never be increased by more than 3% for any such calendar year.  To evidence the Parties’ agreement to each adjusted Loading Rack Tariff, the Parties shall execute an amended, modified, revised or updated Schedule III and attach it to this Agreement.  Such amended, modified, revised or updated Schedule III shall be sequentially numbered (e.g. Schedule III-1, Schedule III-2, etc.), dated and appended as an additional schedule to this Agreement and shall replace the prior version of Schedule III in its entirety after its date of effectiveness.
(iii)    If Frontier El Dorado is unable to load at the Loading Rack the volumes of Products, in the aggregate, required to meet the Minimum Loading Rack Revenue Commitment as a result of El Dorado Logistics’ operational difficulties, prorationing or the inability to provide sufficient capacity, then the Minimum Loading Rack Revenue Commitment applicable to the Contract Quarter during which Frontier El Dorado is unable to load such volumes of Products will be reduced for such period of time by an amount equal to: (A) the volume of Products, in the aggregate, that Frontier El Dorado was unable to load at the Loading Rack (but not to exceed the Minimum Loading Rack Throughput), as a result of El Dorado Logistics’ operational difficulties, prorationing or inability to provide sufficient capacity to achieve the Minimum Loading Rack Throughput, multiplied by (B) the Loading Rack Tariff.  This Section 2(c)(iii) shall not apply in the event El Dorado Logistics gives notice of a Force Majeure event in accordance with Section 4, in which case the Minimum Loading Rack Revenue Commitment shall be suspended in accordance with and as provided in Section 4.
(d)    [Reserved.]

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
11

(e)    Obligations of El Dorado Logistics.  During the Term and subject to the terms and conditions of this Agreement, including Section 13(b), El Dorado Logistics agrees to: (A) own or lease, operate and maintain the El Dorado Assets and all related assets necessary to handle the Crude Oil and Products from Frontier El Dorado; (B) provide the services required under this Agreement and perform all operations relating to the El Dorado Assets including, but not limited to, tank gauging, tank maintenance, tank dike maintenance, loading trucks, interaction with third party pipelines, and customer interface for access agreements; and (C) maintain adequate property and liability insurance covering the El Dorado Assets and any related assets owned by El Dorado Logistics and necessary for the operation of the El Dorado Assets.  Notwithstanding the foregoing, subject to Section 13(b) of this Agreement and applicable provisions of the Omnibus Agreement, El Dorado Logistics is free to sell any of its assets, including assets that provide services under this Agreement, and Frontier El Dorado is free to merge with another entity and to sell all of its assets or equity to another entity at any time.
(f)    Drag Reducing Agents and Additives.  If El Dorado Logistics determines that adding drag reducing agents (“DRA”) to the Products is reasonably required to move Refined Products in the quantities necessary to meet Frontier El Dorado’s schedule or as may otherwise be required to safely move such quantities of Products, El Dorado Logistics shall provide Frontier El Dorado with an analysis of the proposed cost and benefits thereof.  In the event that Frontier El Dorado agrees to use such additives as proposed by El Dorado Logistics, Frontier El Dorado shall reimburse El Dorado Logistics for the costs of adding any additives.  
(g)    [Reserved.]
(h)    [Reserved.]
(i)    Notification of Utilization.  Upon request by El Dorado Logistics, Frontier El Dorado will provide to El Dorado Logistics written notification of Frontier El Dorado’s reasonable good faith estimate of their anticipated future utilization of the El Dorado Assets as soon as reasonably practicable after receiving such request.
(j)    Scheduling and Accepting Movement.  El Dorado Logistics will use its reasonable commercial efforts to schedule movement and accept movements of Crude Oil and Products in a manner that is consistent with the historical dealings between the Parties, as such dealings may change from time to time.
(k)    Taxes.  Frontier El Dorado will pay all taxes, import duties, license fees and other charges by any Governmental Authority levied on or with respect to the Crude Oil and Products handled by Frontier El Dorado for transportation, storage or loading by El Dorado Logistics.  Should any Party be required to pay or collect any taxes, duties, charges and or assessments pursuant to any Applicable Law or authority now in effect or hereafter to become effective which are payable by the any other Party pursuant to this Section 2(k) the proper Party shall promptly reimburse the other Party therefor.
(l)    Timing of Payments.  Frontier El Dorado will make payments to El Dorado Logistics by electronic payment with immediately available funds on a monthly basis during the Term with 

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
12

respect to services rendered or reimbursable costs or expenses incurred by El Dorado Logistics under this Agreement in the prior month.  Payments not received by El Dorado Logistics on or prior to the applicable payment date will accrue interest at the Prime Rate from the applicable payment date until paid.
(m)    Increases in Tariff Rates as a Result of Changes in Applicable Law.  
(i)    If new Applicable Laws are enacted that require El Dorado Logistics to make capital expenditures with respect to the El Dorado Assets, El Dorado Logistics may amend the Pipeline Delivery Base Tariff, Tankage Base Tariff, and Loading Rack Tariff, as applicable, in order to recover El Dorado Logistics’ cost of complying with these Applicable Laws (as determined in good faith and including a reasonable return); provided, however, that El Dorado Logistics may not amend the Pipeline Delivery Base Tariff, Tankage Base Tariff, or Loading Rack Tariff pursuant to this Section 2(m) unless and until El Dorado Logistics has made capital expenditures of $1,000,000.00 in the aggregate with respect to the El Dorado Assets in order to comply with such new Applicable Laws.  For the avoidance of doubt, once such capital expenditures made by El Dorado Logistics exceed $1,000,000.00, El Dorado Logistics may amend the Pipeline Delivery Base Tariff, Tankage Base Tariff, or Loading Rack Tariff to recover its full cost of complying with such Applicable Laws and such recovery shall not be limited to amounts in excess of $1,000,000.
(ii)    Frontier El Dorado, on one hand and El Dorado Logistics, on the other hand, shall use their reasonable commercial efforts to comply with new Applicable Laws, and shall negotiate in good faith to mitigate the impact of new Applicable Laws and to determine the amount of the new tariff rates.  If Frontier El Dorado and El Dorado Logistics are unable to agree on the amount of the new tariff rates that El Dorado Logistics will charge, such tariff rates will be determined by binding arbitration in accordance with Section 13(e).  Any applicable exhibit or schedule to this Agreement will be updated, amended or revised, as applicable, in accordance with this Agreement to reflect any changes in tariff rates agreed to in accordance with this Section 2(m).
(n)    Reimbursement of Operating Expenses.  At the end of the first four (4) complete Contract Quarters following the Closing Date, El Dorado Logistics shall calculate the aggregate operating expenses incurred in the operation of the El Dorado Assets during that twelve-month period (but such calculation shall not include extraordinary and non-recurring items of expense that are not reasonably expected to recur in future periods during the Term).  In the event that such aggregate operating expenses exceed the Assumed OPEX, (A) Frontier El Dorado shall reimburse El Dorado Logistics for such operating expenses incurred in excess of the Assumed OPEX, and (B) El Dorado Logistics shall increase the Tankage Base Tariff by the amount necessary to increase the Minimum Tankage Revenue Commitment by an amount equal to the unreimbursed portion of such aggregate operating expenses in excess of the Assumed OPEX for the remainder of the Term, and the Parties shall execute an amended, modified, revised or updated Schedule II reflecting such aggregate operating expenses as the new Assumed OPEX.  In the event that such aggregate operating expenses are less than the Assumed OPEX, El Dorado Logistics shall decrease the Tankage Base Tariff by the amount necessary to decrease the Minimum Tankage Revenue Commitment by an 

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
13

amount equal to the difference between the Assumed OPEX and such actual operating expenses for the remainder of the Term, and the Parties shall execute an amended, modified, revised or updated Schedule II reflecting such aggregate operating expenses as the new Assumed OPEX.  In the event that the PPI increase for any given year is greater than seven percent (7%), then, in addition to any other applicable increases during such year, El Dorado Logistics shall increase the Tankage Base Tariff by an additional amount necessary to increase the Minimum Tankage Revenue Commitment by the OPEX Recovery Amount.  Such OPEX Recovery Amount shall be added to the then-current Assumed OPEX, and the Parties shall execute an amended, modified, revised or updated Schedule IV reflecting the addition of such OPEX Recovery Amount to the Assumed OPEX.  No operating expenses related solely to the New Tank shall be considered when calculating the OPEX Recovery Amount.
(o)    Tank Inspection and Repairs.  Frontier El Dorado will reimburse El Dorado Logistics for the cost of performing the first API 653 inspection on each of the respective tanks included in the Tankage and any repairs or tests or consequential remediation that may be required to be made to such assets as a result of any discovery made during such inspection; provided, however, that if a tank is two (2) years old or less or has been inspected and repaired during the last twelve months prior to the Closing Date, then El Dorado Logistics will bear the cost of any API 653 inspection and any required repair, testing or consequential remediation of such tank.  In addition, El Dorado Logistics will be responsible for the costs of painting any tanks included in the Tankage that require it.
(p)    Removal of Tank from Service.  The Parties agree that if they mutually determine to remove a tank included in the Tankage from service, then El Dorado Logistics will not be required to utilize, operate or maintain such tank or provide the services required under this Agreement with respect to such tank (and there will be no adjustment to the Minimum Tankage Revenue Commitment).
(q)    Notice of Violation under Environmental Permits; RCRA Order.  The Parties agree that, because El Dorado Logistics or one of its Affiliates is operating certain assets at the Refinery pursuant to permits, licenses, registrations or other operating authorizations (collectively, “Environmental Permits”) issued to HollyFrontier or one of its Affiliates under Environmental Laws, in the event that HollyFrontier or one of such Affiliates receives a notice of violation or enforcement action from the U.S. Environmental Protection Agency or a state agency alleging non-compliance with such Environmental Permits, and such non-compliance relates to the El Dorado Assets, then El Dorado Logistics (and not HollyFrontier or its Affiliates), will be responsible for responding to any such notice of violation or enforcement action.  The applicable HollyFrontier Entity shall have the right, but not the duty, to be fully informed and to participate in the prosecution and/or settlement of any notice of violation or enforcement action relating to the El Dorado Assets.  Additionally, the Parties Agree that Frontier El Dorado will retain responsibility for complying with the terms of the RCRA Order, including all obligations that apply or relate to the El Dorado Assets.  The Parties acknowledge that any costs, penalties, fines or losses associated with responses to any notices of violation or enforcement action under any such Environmental Permits or the RCRA Order may be the subject of indemnification under the Omnibus Agreement (and nothing in this Section 2(q) shall be deemed to change, amend or expand the Parties’ obligations under such Omnibus Agreement 

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
14

provisions other than with regard to the obligation to respond to such notice of violation or enforcement).  El Dorado Logistics will and will cause its Affiliates to cooperate with and support Frontier El Dorado and its Affiliates in satisfying any applicable compliance and reporting obligations under the RCRA Order or Environmental Permits as they relate to the El Dorado Assets and does hereby authorize Frontier El Dorado to submit all reports, certifications and other compliance related submissions on its behalf in satisfaction of such compliance and reporting obligations.  El Dorado Logistics confirms that it has received a copy of the RCRA Order.  The Parties agree that, if, as a result of future circumstances or construction, it becomes necessary for the Parties to obtain additional Environmental Permits that relate to assets that will be located at the Refinery but owned by an HEP Entity, and the Parties agree that such Environmental Permit shall be held by or in the name of a HollyFrontier Entity, then such Environmental Permit shall be subject to the provisions of this Section 2(q) to the same extent as if the assets to which such Environmental Permits relate were El Dorado Assets.
(r)    Tank Inspection and Maintenance Plan.  At least annually, El Dorado Logistics shall prepare and submit to Frontier El Dorado a tank inspection and maintenance plan (which shall include an inspection plan, a cleaning plan, a waste disposal plan, details regarding scheduling and a budget) for the Tankage.  If Frontier El Dorado consents to the submitted plan (which consent shall not be unreasonably withheld or delayed), then El Dorado Logistics shall conduct tank maintenance in conformity with such approved tank maintenance plan (other than any deviations or changes from such plan to which Frontier El Dorado consents (which consent shall not be unreasonably withheld, conditioned or delayed)).  El Dorado Logistics will use its commercially reasonable efforts to schedule the activities under such maintenance plan to minimize disruptions to the operations of Frontier El Dorado at the Refinery.  
Section 3.    Agreement to Remain Shipper
With respect to any Crude Oil or Products that are transported, stored or handled in connection with any of the El Dorado Assets, Frontier El Dorado agrees that Frontier El Dorado or another HollyFrontier Entity will continue acting in the capacity of the shipper of any such Crude Oil or Products for its own account at all times that such Crude Oil or Products are being transported, stored or handled in such El Dorado Assets.
Section 4.    Notification of Shut-down or Reconfiguration; Force Majeure
(a)    Frontier El Dorado must deliver to El Dorado Logistics at least six months advance written notice of any planned shut down or reconfiguration (excluding planned maintenance turnarounds) of the Refinery or any portion of the Refinery that would reduce the Refinery’s output.  Frontier El Dorado will use its commercially reasonable efforts to mitigate any reduction in revenues or throughput obligations under this Agreement that would result from such a shut down or reconfiguration.  
(b)    If Frontier El Dorado shuts down or reconfigures the Refinery or any portion of the Refinery (excluding planned maintenance turnarounds) and reasonably believes in good faith that such shut down or reconfiguration will jeopardize its ability to satisfy its Minimum Pipeline Delivery Revenue Commitment, Minimum Tankage Revenue Commitment, or Minimum Loading Rack 

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
15

Revenue Commitment under this Agreement, then within 90 days of the delivery of the written notice of the planned shut down or reconfiguration, Frontier El Dorado shall (A) propose a new Minimum Pipeline Delivery Revenue Commitment, Minimum Tankage Revenue Commitment, or Minimum Loading Rack Revenue Commitment under this Agreement, as applicable, such that the ratio of the new Minimum Pipeline Delivery Revenue Commitment, Minimum Tankage Revenue Commitment, or Minimum Loading Rack Revenue Commitment, as the case may be, under this Agreement over the anticipated production level following the shut down or reconfiguration will be approximately equal to the ratio of the original Minimum Pipeline Delivery Revenue Commitment, Minimum Tankage Revenue Commitment, or Minimum Loading Rack Revenue Commitment under this Agreement over the original production level and (B) propose the date on which the new Minimum Pipeline Delivery Revenue Commitment, Minimum Tankage Revenue Commitment, or Minimum Loading Rack Revenue Commitment under this Agreement shall take effect.  Unless objected to by El Dorado Logistics within 60 days of receipt by El Dorado Logistics of such proposal, such new Minimum Pipeline Delivery Revenue Commitment, Minimum Tankage Revenue Commitment, or Minimum Loading Rack Revenue Commitment under this Agreement shall become effective as of the date proposed by Frontier El Dorado.  To the extent that El Dorado Logistics does not agree with Frontier El Dorado’s proposal, any changes in Frontier El Dorado’s obligations under this Agreement, or the date on which such changes will take effect, will be determined by binding arbitration in accordance with Section 13(e).  Any applicable exhibit or schedule to this Agreement will be updated, amended or revised, as applicable, in accordance with this Agreement to reflect any change in the Minimum Pipeline Delivery Revenue Commitment, Minimum Tankage Revenue Commitment, or Minimum Loading Rack Revenue Commitment under this Agreement agreed to in accordance with this Section 4(b).
(c)    In the event that any Party is rendered unable, wholly or in part, by a Force Majeure event from performing its obligations under this Agreement for a period of more than thirty (30) consecutive days, then, upon the delivery of notice and full particulars of the Force Majeure event in writing within a reasonable time after the occurrence of the Force Majeure event relied on (“Force Majeure Notice”), the obligations of the Parties, so far as they are affected by the Force Majeure event, shall be suspended for the duration of any inability so caused.  Any suspension of the obligations of the Parties as a result of this Section 4(c) shall extend the Term (to the extent so affected) for a period equivalent to the duration of the inability set forth in the Force Majeure Notice.  Frontier El Dorado will be required to pay any amounts accrued and due under this Agreement at the time of the Force Majeure event.  The cause of the Force Majeure event shall so far as possible be remedied with all reasonable dispatch, except that no Party shall be compelled to resolve any strikes, lockouts or other industrial disputes other than as it shall determine to be in its best interests.  In the event a Force Majeure event prevents El Dorado Logistics or Frontier El Dorado from performing substantially all of their respective obligations under this Agreement for a period of more than one (1) year, this Agreement may be terminated by El Dorado Logistics or Frontier El Dorado, by providing written notice thereof to the other Parties.  
Section 5.    [Reserved.]
Section 6.    Effectiveness and Term

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
16

This Agreement shall be effective as of the Effective Time, and shall terminate at 12:01 a.m. Dallas, Texas, time on October 31, 2026, unless extended by written mutual agreement of the Parties or as set forth in Section 7 (the “Term).  The Party(ies) desiring to extend this Agreement pursuant to this Section 6 shall provide prior written notice to the other Parties of its desire to so extend this Agreement; such written notice shall be provided not more than twenty-four (24) months and not less than the later of twelve (12) months prior to the date of termination or ten (10) days after receipt of a written request from another Party (which request may be delivered no earlier than twelve (12) months prior to the date of termination) to provide any such notice or lose such right.
Section 7.    Right to Enter into a New Agreement
(a)    In the event that Frontier El Dorado provides prior written notice to El Dorado Logistics of the desire of Frontier El Dorado to extend this Agreement by written mutual agreement of the Parties, the Parties shall negotiate in good faith to extend this Agreement by written mutual agreement, but, if such negotiations fail to produce a written mutual agreement for extension by a date six months prior to the termination date, then El Dorado Logistics shall have the right to negotiate to enter into one or more pipeline delivery, tankage and loading agreements with one or more third parties to begin after the date of termination; provided, however, that until the end of one year following termination without renewal of this Agreement, Frontier El Dorado will have the right to enter into a new pipeline delivery, tankage and loading agreement with El Dorado Logistics on commercial terms that substantially match the terms upon which El Dorado Logistics proposes to enter into an agreement with a third party for similar services with respect to all or a material portion of the El Dorado Assets.  In such circumstances, El Dorado Logistics shall give Frontier El Dorado forty-five (45) days prior written notice of any proposed new pipeline delivery, tankage and loading agreement with a third party, and such notice shall inform Frontier El Dorado of the fee schedules, tariffs, duration and any other terms of the proposed third party agreement and Frontier El Dorado shall have forty-five (45) days following receipt of such notice to agree to the terms specified in the notice or Frontier El Dorado shall lose the rights specified by this Section 7(a) with respect to the assets that are the subject of such notice.
(b)    In the event that Frontier El Dorado fails to provide prior written notice to El Dorado Logistics of the desire of Frontier El Dorado to extend this Agreement by written mutual agreement of the Parties pursuant to Section 6, El Dorado Logistics shall have the right, during the period from the date of Frontier El Dorado’s failure to provide written notice pursuant to Section 6 to the date of termination of this Agreement, to negotiate to enter into a new pipeline delivery, tankage and loading agreement with a third party; provided, however, that at any time during the twelve (12) months prior to the expiration of the Term, Frontier El Dorado will have the right to enter into a new pipeline delivery, tankage and loading agreement with El Dorado Logistics on commercial terms that substantially match the terms upon which El Dorado Logistics proposes to enter into an agreement with a third party for similar services with respect to all or a material portion of the El Dorado Assets.  In such circumstances, El Dorado Logistics shall give Frontier El Dorado forty-five (45) days prior written notice of any proposed new pipeline delivery, tankage and loading agreement with a third party, and such notice shall inform Frontier El Dorado of the fee schedules, tariffs, duration and any other terms of the proposed third party agreement and Frontier El Dorado shall have forty-five (45) days following receipt of such notice to agree to the terms specified in 

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
17

the notice or Frontier El Dorado shall lose the rights specified by this Section 7(b) with respect to the assets that are the subject of such notice.
Section 8.    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 Frontier El Dorado:

c/o HollyFrontier Corporation
2828 N. Harwood, Suite 1300
Dallas, Texas  75201
Attn:  President
Email address:  president@hollyfrontier.com 

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

c/o HollyFrontier Corporation
2828 N. Harwood, Suite 1300
Dallas, Texas  75201
Attn:  General Counsel
Email address:  generalcounsel@hollyfrontier.com 

Notices to El Dorado Logistics:

c/o Holly Energy Partners, L.P.
2828 N. Harwood, Suite 1300
Dallas, TX  75201
Attn:  President
Email address:  president-HEP@hollyenergy.com 

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

c/o Holly Energy Partners, L.P.
2828 N. Harwood, Suite 1300
Dallas, Texas  75201
Attn:  General Counsel

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
18

Email address:  general.counsel@hollyenergy.com 

(b)    Any Party may at any time change its address for service from time to time by giving notice to the other Parties in accordance with this Section 8.
Section 9.    Deficiency Payments
(a)    As soon as practicable following the end of each Contract Quarter under this Agreement, El Dorado Logistics shall deliver to Frontier El Dorado a written notice (the “Deficiency Notice”) detailing any failure of Frontier El Dorado to meet its minimum revenue commitment obligations under Section 2(a)(i), Section 2(b)(i), or Section 2(c)(i); provided, however, that Frontier El Dorado’s obligations pursuant to the Minimum Pipeline Delivery Revenue Commitment, Minimum Tankage Revenue Commitment, and the Minimum Loading Rack Revenue Commitment shall, in each case, be assessed on a quarterly basis for the purposes of this Section 9.  Notwithstanding the previous sentence, any deficiency owed by Frontier El Dorado due to its failure to satisfy the Minimum Pipeline Delivery Revenue Commitment, Minimum Tankage Revenue Commitment, or Minimum Loading Rack Revenue Commitment in any Contract Quarter shall be offset by any revenue owed to El Dorado Logistics in excess of the Minimum Pipeline Delivery Revenue Commitment, Minimum Tankage Revenue Commitment, or Minimum Loading Rack Revenue Commitment for such Contract Quarter.  The Deficiency Notice shall (A) specify in reasonable detail the nature of any deficiency and (B) specify the approximate dollar amount that El Dorado Logistics believes would have been paid by Frontier El Dorado to El Dorado Logistics if Frontier El Dorado had complied with its minimum revenue commitment obligations pursuant to Section 2(a)(i), Section 2(b)(i), or Section 2(c)(i), as applicable (the “Deficiency Payment”).  Frontier El Dorado shall pay the Deficiency Payment to El Dorado Logistics upon the later of: (1) ten (10) days after their receipt of the Deficiency Notice and (2) thirty (30) days following the end of the related Contract Quarter.
(b)    If Frontier El Dorado disagrees with any Deficiency Notice (the “Disputed Deficiency Notice”), then, following the payment of the undisputed portion of the deficiency payment related to the Disputed Deficiency Notice (the “Disputed Deficiency Payment”) to El Dorado Logistics, if any, Frontier El Dorado shall send written notice thereof regarding the disputed portion of the Disputed Deficiency Notice to El Dorado Logistics, and a senior officer of HollyFrontier (on behalf of Frontier El Dorado) and a senior officer of the Partnership (on behalf of El Dorado Logistics) shall meet or communicate by telephone at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary and shall negotiate in good faith to attempt to resolve any differences that they may have with respect to matters specified in the Disputed Deficiency Notice.  During the 30-day period following the receipt of the Disputed Deficiency Notice, Frontier El Dorado shall have access to the working papers of El Dorado Logistics relating to the Disputed Deficiency Notice.  If such differences are not resolved within thirty (30) days following Frontier El Dorado’s receipt of the Disputed Deficiency Notice, Frontier El Dorado, on the one hand,  and El Dorado Logistics, on the other hand, shall, within forty-five (45) days following Frontier El Dorado’s receipt of the Disputed Deficiency Notice, submit any and all matters which remain in dispute and which were properly included in the Disputed Deficiency Notice to arbitration in accordance with Section 13(e).

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
19

(c)    If it is finally determined pursuant to this Section 9 that Frontier El Dorado is required to pay any or all of the disputed portion of the Disputed Deficiency Payment, Frontier El Dorado shall promptly pay such amount to El Dorado Logistics, as applicable, together with interest thereon at the Prime Rate, in immediately available funds.
(d)    The Parties acknowledge and agree that there shall be no carry-over of deficiency payments beyond each Contract Quarter provided for in Section 9(a) with respect to the Minimum Pipeline Delivery Revenue Commitment, the Minimum Tankage Revenue Commitment or the Minimum Loading Rack Revenue Commitment.
Section 10.    Indemnification.  The Parties acknowledge the indemnification obligations between the Parties and their Affiliates with respect to the El Dorado Assets provided in the Omnibus Agreement.  
Section 11.    Right of First Refusal.  The Parties acknowledge the right of first refusal of Frontier El Dorado with respect to the El Dorado Assets provided in the Omnibus Agreement.
Section 12.    Limitation of Damages.
(a)    NOTWITHSTANDING ANYTHING CONTAINED TO THE CONTRARY IN ANY OTHER PROVISION OF THIS AGREEMENT AND EXCEPT FOR CLAIMS MADE BY THIRD PARTIES WHICH SHALL NOT BE LIMITED BY THIS PARAGRAPH, THE PARTIES AGREE THAT THE RECOVERY BY ANY PARTY OF ANY LIABILITIES, DAMAGES, COSTS OR OTHER EXPENSES SUFFERED OR INCURRED BY IT AS A RESULT OF ANY BREACH OR NONFULFILLMENT BY A PARTY OF ANY OF ITS REPRESENTATIONS, WARRANTIES, COVENANTS, AGREEMENTS OR OTHER OBLIGATIONS UNDER THIS AGREEMENT, 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 (x) AS A RESULT OF A THIRD PARTY CLAIM FOR SUCH INDIRECT, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES OR (y) TO 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) THAT ARE A RESULT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE BREACHING OR NONFULFILLING PARTY OR ITS AFFILIATES.
Section 13.    Miscellaneous
(a)    Amendments and Waivers.  No amendment or modification of this Agreement shall be valid unless it is in writing and signed by the Parties.  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 

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
20

or updated by the Parties if each of the Parties executes an amended, modified, revised or updated exhibit or schedule, as applicable, and attaches it to this Agreement.  Such amended, modified, revised or updated exhibits or schedules shall be sequentially numbered (e.g. Schedule I-1, Schedule I-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 entirety after its date of effectiveness, 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.
(b)    Successors and Assigns.  This Agreement shall inure to the benefit of, and shall be binding upon, Frontier El Dorado, El Dorado Logistics, and their respective successors and permitted assigns.  Neither this Agreement nor any of the rights or obligations hereunder shall be assigned without the prior written consent of Frontier El Dorado (in the case of any assignment by El Dorado Logistics) or El Dorado Logistics (in the case of any assignment by Frontier El Dorado), in each case, such consent is not to be unreasonably withheld or delayed; provided, however, that (i) El Dorado Logistics may make such an assignment (including a partial pro rata assignment) to an Affiliate of El Dorado Logistics without Frontier El Dorado’s consent, (ii) Frontier El Dorado may make such an assignment (including a pro rata partial assignment) to an Affiliate of Frontier El Dorado without El Dorado Logistics’ consent, (iii) Frontier El Dorado may make a collateral assignment of its rights and obligations hereunder, and (iv) El Dorado Logistics may make a collateral assignment of its rights hereunder and/or grant a security interest in all or a portion of the El Dorado Assets to a bona fide third party lender or debt holder, or trustee or representative for any of them, without Frontier El Dorado’s consent, if such third party lender, debt holder or trustee shall have executed and delivered to Frontier El Dorado a non-disturbance agreement in such form as is reasonably satisfactory to Frontier El Dorado and such third party lender, debt holder or trustee and Frontier El Dorado executes an acknowledgement of such collateral assignment in such form as may from time to time be reasonably requested.  Any attempt to make an assignment otherwise than as permitted by the foregoing shall be null and void.  The Parties agree to require their respective successors, if any, to expressly assume, in a form of agreement reasonably acceptable to the other Parties, their obligations under this Agreement.
(c)    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.
(d)    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.
(e)    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 13(e) and the Commercial Arbitration Rules or the Federal Arbitration Act, the terms of this Section 13(e) will control the rights and obligations 

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
21

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 Frontier El Dorado, El Dorado Logistics, or any of their Affiliates and (ii) have not less than seven (7) years experience in the petroleum transportation industry.  The hearing will be conducted in Dallas, Texas and commence within thirty (30) days after the selection of the third arbitrator.  Frontier El Dorado, El Dorado Logistics, 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 Frontier El Dorado, El Dorado Logistics, 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.
(f)    Rights of Limited Partners.  The provisions of this Agreement are enforceable solely by the Parties, 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 comply with the terms of this Agreement.  
(g)    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.
(h)    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.
(i)    No Novation.  This Agreement shall be considered an amendment and restatement of the First Amended and Restated El Dorado Throughput Agreement, and the First Amended and 

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
22

Restated El Dorado Throughput Agreement is hereby ratified, approved and confirmed in every respect, except as amended hereby. This Agreement is not intended to constitute a novation of the First Amended and Restated El Dorado Throughput Agreement and all of the obligations owing by the Parties under the First Amended and Restated El Dorado Throughput Agreement shall continue (from and after the date of this Agreement, as amended hereby).
Section 14.    Guarantee by HollyFrontier
(a)    Payment and Performance Guaranty.  HollyFrontier unconditionally, absolutely, continually and irrevocably guarantees, as principal and not as surety, to El Dorado Logistics the punctual and complete payment in full when due of all amounts due from Frontier El Dorado under the Agreement (collectively, the “Frontier El Dorado Payment Obligations”).  HollyFrontier agrees that El Dorado Logistics shall be entitled to enforce directly against HollyFrontier any of the Frontier El Dorado Payment Obligations.
(b)    Guaranty Absolute.  HollyFrontier hereby guarantees that the Frontier El Dorado Payment Obligations will be paid strictly in accordance with the terms of the Agreement.  The obligations of HollyFrontier under this Agreement constitute a present and continuing guaranty of payment, and not of collection or collectability.  The liability of HollyFrontier under this Agreement shall be absolute, unconditional, present, continuing and irrevocable irrespective of:
(i)    any assignment or other transfer of the Agreement or any of the rights thereunder of El Dorado Logistics;
(ii)    any amendment, waiver, renewal, extension or release of or any consent to or departure from or other action or inaction related to the Agreement;
(iii)    any acceptance by El Dorado Logistics of partial payment or performance from Frontier El Dorado;
(iv)    any bankruptcy, insolvency, reorganization, arrangement, composition, adjustment, dissolution, liquidation or other like proceeding relating to El Dorado Logistics or any action taken with respect to the Agreement by any trustee or receiver, or by any court, in any such proceeding;
(v)    any absence of any notice to, or knowledge of, HollyFrontier, of the existence or occurrence of any of the matters or events set forth in the foregoing subsections (i) through (iv); or
(vi)    any other circumstance which might otherwise constitute a defense available to, or a discharge of, a guarantor.
The obligations of HollyFrontier hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or setoff, counterclaim, recoupment 

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
23

or termination whatsoever by reason of the invalidity, illegality or unenforceability of the Frontier El Dorado Payment Obligations or otherwise.
(c)    Waiver.  HollyFrontier hereby waives promptness, diligence, all setoffs, presentments, protests and notice of acceptance and any other notice relating to any of the Frontier El Dorado Payment Obligations and any requirement for El Dorado Logistics to protect, secure, perfect or insure any security interest or lien or any property subject thereto or exhaust any right or take any action against Frontier El Dorado, any other entity or any collateral.
(d)    Subrogation Waiver.  HollyFrontier agrees that for so long as there is a current or ongoing default or breach of this Agreement by Frontier El Dorado, HollyFrontier shall not have any rights (direct or indirect) of subrogation, contribution, reimbursement, indemnification or other rights of payment or recovery from Frontier El Dorado for any payments made by HollyFrontier under this Section 14, and HollyFrontier hereby irrevocably waives and releases, absolutely and unconditionally, any such rights of subrogation, contribution, reimbursement, indemnification and other rights of payment or recovery it may now have or hereafter acquire against Frontier El Dorado during any period of default or breach of this Agreement by Frontier El Dorado until such time as there is no current or ongoing default or breach of this Agreement by Frontier El Dorado.
(e)    Reinstatement.  The obligations of HollyFrontier under this Section 14 shall continue to be effective or shall be reinstated, as the case may be, if at any time any payment of any of the Frontier El Dorado Payment Obligations is rescinded or must otherwise be returned to Frontier El Dorado or any other entity, upon the insolvency, bankruptcy, arrangement, adjustment, composition, liquidation or reorganization of Frontier El Dorado or such other entity, or for any other reason, all as though such payment had not been made.
(f)    Continuing Guaranty.  This Section 14 is a continuing guaranty and shall (i) remain in full force and effect until the first to occur of the indefeasible payment in full of all of the Frontier El Dorado Payment Obligations, (ii) be binding upon HollyFrontier, its successors, transferees and assigns and (iii) inure to the benefit of and be enforceable by El Dorado Logistics and its successors, transferees and assigns.
(g)    No Duty to Pursue Others.  It shall not be necessary for El Dorado Logistics (and HollyFrontier hereby waives any rights which HollyFrontier may have to require El Dorado Logistics), in order to enforce such payment by HollyFrontier, first to (i) institute suit or exhaust its remedies against Frontier El Dorado or others liable on the Frontier El Dorado Payment Obligations or any other person, (ii) enforce El Dorado Logistics’ rights against any other guarantors of the Frontier El Dorado Payment Obligations, (iii) join Frontier El Dorado or any others liable on the Frontier El Dorado Payment Obligations in any action seeking to enforce this Section 14, (iv) exhaust any remedies available to El Dorado Logistics against any security which shall ever have been given to secure the Frontier El Dorado Payment Obligations, or (v) resort to any other means of obtaining payment of the Frontier El Dorado Payment Obligations.
Section 15.    Guarantee by the Partnership and Operating Partnership.

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
24

(a)    Payment and Performance Guaranty.  Each of the Partnership and the Operating Partnership unconditionally, absolutely, continually and irrevocably guarantees, as principal and not as surety, to Frontier El Dorado the punctual and complete payment in full when due of all amounts due from El Dorado Logistics under the Agreement (collectively, the “El Dorado Logistics Payment Obligations”).  Each of the Partnership and the Operating Partnership agrees that Frontier El Dorado shall be entitled to enforce directly against the Partnership and the Operating Partnership any of the El Dorado Logistics Payment Obligations.
(b)    Guaranty Absolute.  Each of the Partnership and the Operating Partnership hereby guarantees that the El Dorado Logistics Payment Obligations will be paid strictly in accordance with the terms of the Agreement.  The obligations of each of the Partnership and the Operating Partnership under this Agreement constitute a present and continuing guaranty of payment, and not of collection or collectability.  The liability of each of the Partnership and the Operating Partnership under this Agreement shall be absolute, unconditional, present, continuing and irrevocable irrespective of:
(i)    any assignment or other transfer of the Agreement or any of the rights thereunder of Frontier El Dorado;
(ii)    any amendment, waiver, renewal, extension or release of or any consent to or departure from or other action or inaction related to the Agreement;
(iii)    any acceptance by Frontier El Dorado of partial payment or performance from El Dorado Logistics;
(iv)    any bankruptcy, insolvency, reorganization, arrangement, composition, adjustment, dissolution, liquidation or other like proceeding relating to Frontier El Dorado or any action taken with respect to the Agreement by any trustee or receiver, or by any court, in any such proceeding;
(v)    any absence of any notice to, or knowledge of, the Partnership or the Operating Partnership, of the existence or occurrence of any of the matters or events set forth in the foregoing subsections (i) through (iv); or
(vi)    any other circumstance which might otherwise constitute a defense available to, or a discharge of, a guarantor.
The obligations of each of the Partnership and the Operating Partnership hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the El Dorado Logistics Payment Obligations or otherwise.
(c)    Waiver.  Each of the Partnership and the Operating Partnership hereby waives promptness, diligence, all setoffs, presentments, protests and notice of acceptance and any other notice relating to any of the El Dorado Logistics Payment Obligations and any requirement for 

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
25

Frontier El Dorado to protect, secure, perfect or insure any security interest or lien or any property subject thereto or exhaust any right or take any action against El Dorado Logistics, any other entity or any collateral.
(d)    Subrogation Waiver.  Each of the Partnership and the Operating Partnership agrees that for so long as there is a current or ongoing default or breach of this Agreement by El Dorado Logistics, the Partnership and the Operating Partnership shall not have any rights (direct or indirect) of subrogation, contribution, reimbursement, indemnification or other rights of payment or recovery from El Dorado Logistics for any payments made by the Partnership or the Operating Partnership under this Section 15, and each of the Partnership and the Operating Partnership hereby irrevocably waives and releases, absolutely and unconditionally, any such rights of subrogation, contribution, reimbursement, indemnification and other rights of payment or recovery it may now have or hereafter acquire against El Dorado Logistics during any period of default or breach of this Agreement by El Dorado Logistics until such time as there is no current or ongoing default or breach of this Agreement by El Dorado Logistics.
(e)    Reinstatement.  The obligations of the Partnership and the Operating Partnership under this Section 15 shall continue to be effective or shall be reinstated, as the case may be, if at any time any payment of any of the El Dorado Logistics Payment Obligations is rescinded or must otherwise be returned to El Dorado Logistics or any other entity, upon the insolvency, bankruptcy, arrangement, adjustment, composition, liquidation or reorganization of El Dorado Logistics or such other entity, or for any other reason, all as though such payment had not been made.
(f)    Continuing Guaranty.  This Section 15 is a continuing guaranty and shall (i) remain in full force and effect until the first to occur of the indefeasible payment in full of all of the El Dorado Logistics Payment Obligations, (ii) be binding upon the Partnership, the Operating Partnership, and each of their respective successors and assigns and (iii) inure to the benefit of and be enforceable by Frontier El Dorado and its successors, transferees and assigns.
(g)    No Duty to Pursue Others.  It shall not be necessary for Frontier El Dorado (and each of the Partnership and the Operating Partnership hereby waives any rights which the Partnership or the Operating Partnership, as applicable, may have to require Frontier El Dorado), in order to enforce such payment by the Partnership or the Operating Partnership, first to (i) institute suit or exhaust its remedies against El Dorado Logistics or others liable on the El Dorado Logistics Payment Obligations or any other person, (ii) enforce Frontier El Dorado’ rights against any other guarantors of the El Dorado Logistics Payment Obligations, (iii) join El Dorado Logistics or any others liable on the El Dorado Logistics Payment Obligations in any action seeking to enforce this Section 15, (iv) exhaust any remedies available to Frontier El Dorado against any security which shall ever have been given to secure the El Dorado Logistics Payment Obligations, or (v) resort to any other means of obtaining payment of the El Dorado Logistics Payment Obligations.
[Remainder of page intentionally left blank.  Signature pages follow.]

SECOND AMENDED AND RESTATED PIPELINE DELIVERY, TANKAGE AND LOADING RACK THROUGHPUT AGREEMENT (EL DORADO)
26

IN WITNESS WHEREOF, the undersigned Parties have executed this Agreement to be effective as of the Effective Time. 
	
									
	 
	 
	 
	 
	EL DORADO LOGISTICS:

EL DORADO LOGISTICS LLC

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By:
	/s/ Bruce R. Shaw

	 
	 
	 
	 
	Name:
	Bruce R. Shaw

	

	 
	 
	 
	Title:
	President

	 
	 
	 
	 
	FRONTIER EL DORADO:

FRONTIER EL DORADO REFINING LLC

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By:
	/s/ Michael C. Jennings

	 
	 
	 
	 
	Name:
	Michael C. Jennings

	 
	 
	 
	 
	Title:
	Chief Executive Officer and President 

ACKNOWLEDGED AND AGREED 
FOR PURPOSES OF Section 9(b) 
AND Section 14:

HOLLYFRONTIER CORPORATION

By:  /s/ Michael C. Jennings    
Name:  Michael C. Jennings
Title:    Chief Executive Officer and President    

Signature Page 1 of 2  
Second Amended and Restated Pipeline Delivery, Tankage and Loading Rack Throughput Agreement (El Dorado)

ACKNOWLEDGED AND AGREED 
FOR PURPOSES OF Section 9(b)
AND Section 15:

HOLLY ENERGY PARTNERS, L.P.

By:    HEP Logistics Holdings, L.P.,
its General Partner

By:    Holly Logistic Services, L.L.C.,
its General Partner

By: /s/ Bruce R. Shaw    
Name: Bruce R. Shaw
Title:      President

ACKNOWLEDGED AND AGREED 
FOR PURPOSES OF Section 15:

HOLLY ENERGY PARTNERS-OPERATING, L.P.

By: /s/ Bruce R. Shaw    
Name: Bruce R. Shaw
Title:   President

Signature Page 2 of 2  
Second Amended and Restated Pipeline Delivery, Tankage and Loading Rack Throughput Agreement (El Dorado)

SCHEDULE I 
PIPELINE DELIVERY TARIFF

	
	
	Pipeline Delivery Base Tariff

	$0.1500 per barrel

	07/01/2012 $0.1545 per barrel

	07/01/2013 $0.1575 per barrel

	
	
	Pipeline Delivery Incentive Tariff

	$0.0700 per barrel

	07/01/2012 $0.0721 per barrel

	07/01/2013 $0.0735 per barrel

 
Schedule I

SCHEDULE II
TANKAGE TARIFFS

	
	
	Tankage Base Tariff

	$0.4500 per barrel

	07/01/2012 $0.4635 per barrel

	01/01/2013 $0.5002  per barrel

	07/01/2013 $0.5099  per barrel

	

Tankage Incentive Tariff

	$0.20 per barrel

	07/01/2012 $0.2060 per barrel

	07/01/2013 $0.2100 per barrel

                

 
Schedule II

SCHEDULE III
LOADING RACK TARIFF

	
	
	Loading Rack Tariff

	$0.2500 per barrel

	07/01/2012 $0.2575 per barrel

	07/01/2013 $0.2625 per barrel

 
Schedule III

SCHEDULE IV
ASSUMED OPEX

	
	
	Assumed OPEX

	$3,200,000.00

 
Schedule IV

SCHEDULE V
NEW TANK CONSTRUCTION SPECIFICATIONS

See attached.

 
Schedule IV

 
Schedule V

 
Schedule V

 
Schedule V

 
Schedule V

 
Schedule V

 
Schedule V

 
Schedule V

 
Schedule V

EXHIBIT A
LOADING RACKS
The Refined Products Truck Loading Rack and the Propane Truck Loading Rack transferred to El Dorado Logistics pursuant to that certain Conveyance, Assignment and Bill of Sale (El Dorado), dated effective as of October 25, 2011, by and between Frontier El Dorado and El Dorado Logistics.

 
Exhibit A

EXHIBIT B
TANKAGE
	
				
	TANK ID NUMBER
	CURRENT SERVICE/PRODUCT
	NOMINAL CAPACITY, BBLS
	 

	1
	Naptha
	2,885
	 

	2
	Naptha
	2,885
	 

	3
	ULSD
	38,406
	 

	15
	ULSD
	12,422
	 

	16
	Light Slop
	28,880
	 

	17
	Gasoline
	92,740
	 

	18
	Gasoline
	88,600
	 

	19
	Gasoline
	90,733
	 

	20
	Finish Gasoline
	17,961
	 

	21
	ULSD
	120,639
	 

	23
	ULSD
	113,182
	 

	24
	ULSD
	119,269
	 

	25
	Av Jet
	65,117
	 

	29
	CRU1 Feed
	33,723
	 

	30
	CRU2 Feed
	39,417
	 

	31
	ULSD
	23,792
	 

	32
	Finish Gasoline
	74,847
	 

	64
	Gasoline
	17,961
	 

	65
	Gasoline
	17,941
	 

	66
	Naptha
	22,582
	 

	75
	ULS k
	24,938
	 

	78
	ULS k
	9,226
	 

	127
	Heavy Slop
	20,504
	 

	132
	Sour Distilate
	63,672
	 

 
Exhibit B

	
				
	TANK ID NUMBER
	CURRENT SERVICE/PRODUCT
	NOMINAL CAPACITY, BBLS
	 

	133
	HTU2 Chg.
	24,438
	 

	134
	HTU2 Chg.
	76,492
	 

	136
	HTU4 CHg.
	74,689
	 

	137
	Gas Oil/Sour diesel
	191,599
	 

	138
	Gas Oil
	193,742
	 

	139
	Gas Oil
	74,792
	 

	142
	Gas Oil
	191,563
	 

	143
	Gas Oil
	191,570
	 

	159
	Slurry
	9,778
	 

	167
	Slurry
	8,908
	 

	168
	ULSD Dock
	22,408
	 

	178
	Coke Charge/Swing Tank
	80,000
	 

	192
	Idled
	8,908
	 

	212
	Coker Chg.
	76,524
	 

	213
	Asphalt
	77,675
	 

	215
	AV Jet
	67,529
	 

	216
	Alkylate
	72,618
	 

	218
	Gas Oil
	77,675
	 

	219
	Reformate
	71,466
	 

	220
	Swing Tank
	71,495
	 

	221
	Gasoline Swing
	71,508
	 

	222
	Gasoline Swing
	71,509
	 

	223
	Reformate
	72,893
	 

	224
	Jet Fuel
	71,534
	 

	225
	HTU1 Chg, kerosene
	28,882
	 

	226
	Finish Gasoline
	27,679
	 

	227
	Natural Gasoline
	27,701
	 

 
Exhibit B

	
				
	TANK ID NUMBER
	CURRENT SERVICE/PRODUCT
	NOMINAL CAPACITY, BBLS
	 

	230
	Diesel (RAM)
	4,780
	 

	231
	Light Cycle (RAM)
	1,923
	 

	243
	Toluene
	11,300
	 

	244
	Toluene
	10,175
	 

	250
	FCCU Gasoline
	75,354
	 

	251
	FCCU Gasoline
	75,968
	 

	252
	FCCU Gasoline
	75,968
	 

	253
	Natural Gasoline
	74,653
	 

	254
	Isomerate
	19,318
	 

	255
	Isomerate
	19,318
	 

	256
	TEL Wash
	950
	 

	447
	Finish Gasoline
	17,730
	 

	448
	Idled
	17,746
	 

	453
	Ethanol
	5,121
	 

	457
	HTU3 Chg, LSR
	32,690
	 

	458
	Isomerate
	32,690
	 

	490
	ULSD
	116,094
	 

	600
	Propane
	625
	 

	601
	Propane
	625
	 

	602
	Propane
	625
	 

	603
	Propane
	625
	 

	604
	Propane
	625
	 

	605
	Propane
	625
	 

	606
	Propane
	625
	 

	607
	Propane
	625
	 

	608
	Propane
	625
	 

	609
	Propane
	625
	 

 
Exhibit B

	
				
	TANK ID NUMBER
	CURRENT SERVICE/PRODUCT
	NOMINAL CAPACITY, BBLS
	 

	610
	Propane
	625
	 

	611
	Propane
	625
	 

	612
	Propane
	625
	 

	613
	Propane
	625
	 

	614
	Propane
	625
	 

	615
	Propane
	625
	 

	616
	Propane
	625
	 

	617
	Propane
	625
	 

	618
	Propane
	625
	 

	619
	Propane
	625
	 

	620
	Propane
	575
	 

	621
	Propane
	100
	 

	640
	Asphalt
	66,859
	 

	641
	Biodiesel
	6,813
	 

	TOTAL CAPACITY 
(92 TANKS)
	 
	3,856,522
	 

 
Exhibit BElDorado-NinthAmendedandRestatedOmnibusAgreement-Exhibit102

EXECUTION VERSION

	
	
	

NINTH AMENDED AND RESTATED OMNIBUS AGREEMENT
among
HOLLYFRONTIER CORPORATION
HOLLY ENERGY PARTNERS, L.P.
and
CERTAIN OF THEIR RESPECTIVE SUBSIDIARIES

     

TABLE OF CONTENTS
    
	
									
	 
	 
	 
	 
	 
	 
	Page
	 
	 

	 
	Article I
	 
	Definitions
	3
	 
	 

	 
	1.1
	 
	Definitions
	3
	 
	 

	 
	Article II
	 
	Business Opportunities
	10
	 
	 

	 
	2.1
	 
	Restricted Businesses
	10
	 
	 

	 
	2.2
	 
	Permitted Exceptions
	10
	 
	 

	 
	2.3
	 
	Procedures
	11
	 
	 

	 
	2.4
	 
	Scope of Prohibition
	13
	 
	 

	 
	2.5
	 
	Enforcement
	13
	 
	 

	 
	2.6
	 
	Limitation on Acquisitions of Subject Assets by Partnership Group Members
	13
	 
	 

	 
	Article III
	 
	Indemnification
	13
	 
	 

	 
	3.1
	 
	Environmental Indemnification
	13
	 
	 

	 
	3.2
	 
	Limitations Regarding Environmental Indemnification
	15
	 
	 

	 
	3.3
	 
	Right of Way Indemnification
	15
	 
	 

	 
	3.4
	 
	Additional Indemnification
	16
	 
	 

	 
	3.5
	 
	Indemnification Procedures
	17
	 
	 

	 
	3.6
	 
	Limitation on Indemnification Obligations
	18
	 
	 

	 
	3.7
	 
	Exclusion from Indemnification
	18
	 
	 

	 
	Article IV
	 
	General and Administrative Expenses
	19
	 
	 

	 
	4.1
	 
	General
	19
	 
	 

	 
	Article V
	 
	Right of First Refusal
	19
	 
	 

	 
	5.1
	 
	Holly Right of First Refusal; Prohibition on Transfer of Refinery Related Assets
	19
	 
	 

	 
	5.2
	 
	Procedures
	20
	 
	 

	 
	Article VI
	 
	Holly Purchase Option
	22
	 
	 

	 
	6.1
	 
	Option to Purchase Tulsa Transferred Assets
	22
	 
	 

	 
	Article VII
	 
	Miscellaneous
	22
	 
	 

	 
	7.1
	 
	Choice of Law
	22
	 
	 

	 
	7.2
	 
	Arbitration Provision
	22
	 
	 

	 
	7.3
	 
	Notice
	23
	 
	 

	 
	7.4
	 
	Entire Agreement
	24
	 
	 

	 
	7.5
	 
	Termination of Article II
	24
	 
	 

	 
	7.6
	 
	Amendment or Modification
	24
	 
	 

	 
	7.7
	 
	Assignment
	25
	 
	 

	 
	7.8
	 
	Additional Partnership Entities
	25
	 
	 

	 
	7.9
	 
	Counterparts
	25
	 
	 

	 
	7.10
	 
	Severability
	25
	 
	 

	 
	7.11
	 
	Further Assurances
	25
	 
	 

	 
	7.12
	 
	Rights of Limited Partners
	25
	 
	 

	 
	7.13
	 
	Headings
	25
	 
	 

     

	
						
	 
	7.14
	 
	[Intentionally omitted]
	26
	 

	 
	7.15
	 
	Limitation of Damages
	26
	 

     ii

NINTH AMENDED AND RESTATED
OMNIBUS AGREEMENT
THIS NINTH AMENDED AND RESTATED OMNIBUS AGREEMENT (the “Agreement”) is being entered into on January 7, 2014, to be effective as of January 7, 2014, by and among HollyFrontier 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 Eighth Amended and Restated Omnibus Agreement entered into on July 16, 2013 and effective as of June 1, 2013 (as amended, the “Eighth 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”) and the other Holly Entities and Partnership Entities signatory thereto.  
R E C I T A L S:
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 

1

amended and restated the Original Omnibus Agreement and entered into the First Amended and Restated Omnibus Agreement (the “First Amended Omnibus Agreement”);
WHEREAS, in connection with that certain Asset Purchase Agreement dated as of August 1, 2009, by and between Holly Refining & Marketing – Tulsa LLC (“Holly Tulsa”) and HEP Tulsa LLC (“HEP Tulsa”), pursuant to which Holly Tulsa transferred and conveyed to HEP Tulsa, and HEP Tulsa acquired, the Tulsa Transferred Assets (as defined herein), the Parties amended and restated the First Amended Omnibus Agreement and entered into the Second Amended and Restated Omnibus Agreement (the “Second Amended Omnibus Agreement”);
WHEREAS, in connection with (i) that certain Asset Sale and Purchase Agreement dated as of October 19, 2009, by and among Holly Tulsa, HEP Tulsa and Sinclair Tulsa Refining Company (“Sinclair”), pursuant to which HEP Tulsa acquired the Sinclair Transferred Assets (as defined herein), (ii) that certain Asset Purchase Agreement dated as of December 1, 2009, by and among Holly, Navajo Pipeline and HEP Pipeline L.L.C., pursuant to which Navajo Pipeline agreed to transfer and convey to HEP Pipeline L.L.C., and HEP Pipeline L.L.C. agreed to acquire, the Beeson Pipeline (as defined herein), and (iii) that certain LLC Interest Purchase Agreement by and among Holly, Navajo Pipeline and the Operating Partnership, pursuant to which Navajo Pipeline agreed to transfer and convey to the Operating Partnership, and the Operating Partnership agreed to acquire, all of the limited liability company interests of Roadrunner Pipeline, L.L.C., the entity that owns the Roadrunner Pipeline (as defined herein), the Parties amended and restated the Second Amended Omnibus Agreement and entered into the Third Amended and Restated Omnibus Agreement (the “Third Amended Omnibus Agreement”); 
WHEREAS, in connection with that certain LLC Interest Purchase Agreement dated as of March 31, 2010, by and among Holly, Lea Refining Company, Holly Tulsa, HEP Refining, L.L.C. (“HEP Refining”) and HEP Tulsa (the “March 2010 Drop Down LLC Interest Purchase Agreement”), pursuant to which  Holly, Lea Refining Company and Holly Tulsa agreed to transfer and convey to HEP Refining and HEP Tulsa the Additional Tulsa East Assets (as defined herein) and the Additional Lovington Assets (as defined herein), the Parties amended and restated the Third Amended Omnibus Agreement and entered into the Fourth Amended and Restated Omnibus Agreement (the “Fourth Amended Omnibus Agreement”);
WHEREAS, in connection with the construction of the Tulsa Interconnecting Pipelines (as defined herein), Holly Tulsa, HEP Tulsa and Holly Energy Storage – Tulsa LLC entered into that certain Second Amended and Restated Pipelines, Tankage and Loading Rack Throughput Agreement (Tulsa East), dated as of August 31, 2011, pursuant to which HEP Tulsa agreed to provide transportation services to Holly Tulsa with respect to the Tulsa Interconnecting Pipelines (the “Tulsa Throughput Agreement”), the Parties amended and restated the Fourth Amended Omnibus Agreement and entered into the Fifth Amended and Restated Omnibus Agreement (the “Fifth Amended Omnibus Agreement”); 
WHEREAS, in connection with that certain LLC Interest Purchase Agreement effective as of November 1, 2011, by and among Holly, Frontier Refining LLC (“Frontier Cheyenne”), Frontier El Dorado Refining LLC (“Frontier El Dorado”), the Operating Partnership and the Partnership, (the “November 2011 Frontier Drop Down LLC Interest Purchase Agreement”), 

2

pursuant to which Frontier Cheyenne and Frontier El Dorado agreed sell to the Operating Partnership the entities that own the Cheyenne Assets (as defined herein) and the El Dorado Assets (as defined herein), the Parties amended and restated the Fifth Amended Omnibus Agreement and entered into the Sixth Amended and Restated Omnibus Agreement (the “Sixth Amended Omnibus Agreement”);
WHEREAS, in connection with that certain LLC Interest Purchase Agreement dated as of July 12, 2012, by and among Holly, HEP UNEV Holdings LLC (“HEP UNEV”) and the Partnership (the “UNEV LLC Interest Purchase Agreement”), pursuant to which Holly agreed to sell to HEP UNEV the entity that owns 75% of all of the issued and outstanding membership interests of UNEV Pipeline, LLC, the entity that owns the UNEV Pipeline (as defined herein), the Parties amended and restated the Sixth Amended Omnibus Agreement and entered into the Seventh Amended and Restated Omnibus Agreement (the “Seventh Amended Omnibus Agreement”); 
WHEREAS, in connection with that certain Transportation Services Agreement dated as of July 16, 2013, to be effective as of 12:01 a.m., Dallas, Texas time, on June 1, 2013, by and between HollyFrontier Refining & Marketing LLC (“HFRM”) and the Operating Partnership (the “Malaga TSA”), pursuant to which the Operating Partnership will provide certain transportation services for HFRM on the Malaga Pipeline System (as defined herein), the Parties amended and restated the Seventh Amended Omnibus Agreement and entered into the Eighth Amended Omnibus Agreement; and
WHEREAS, in connection with that certain Second Amended and Restated Pipeline Delivery, Tankage and Loading Rack Throughput Agreement (El Dorado), dated as of January 7, 2014, and effective as of November 1, 2011, by and between Frontier El Dorado and El Dorado Logistics LLC (the “El Dorado Throughput Agreement”), pursuant to which El Dorado Logistics LLC will construct new storage tank assets, the Parties desire to amend and restate the Eighth Amended Omnibus Agreement as provided herein.
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.

3

“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., 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).
“Additional Tulsa East Assets” means the Transferred Tulsa East Assets as defined in the March 2010 Drop Down LLC Interest Purchase Agreement.
“Additional Lovington Assets” means the Transferred Lovington Assets as defined in the March 2010 Drop Down LLC Interest Purchase Agreement.
“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, 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, directly or indirectly (including by transfer or sale of the entity that owns such assets or the entity that owns the interests in the entity that owns such assets), by the Holly Entities to the Partnership 

4

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, (v) the Tulsa Transferred Assets, (vi) the Beeson Pipeline, (vii) the Roadrunner Pipeline, (viii) the Additional Lovington Assets, (ix) the Additional Tulsa East Assets, (x) the Sinclair Assets, (xi) the Tulsa Interconnecting Pipelines, (xii) the Cheyenne Assets, (xiii) the El Dorado Assets, (xiv) the UNEV Pipeline, (xv) the Malaga Pipeline System, and (xvi) the El Dorado New Tank.
“Beeson Pipeline” means the 8” crude oil pipeline extending from Beeson station to Lovington, New Mexico, owned by HEP Pipeline, L.L.C.
“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.
“Cheyenne Assets” is defined in the November 2011 Frontier Drop Down LLC Interest Purchase Agreement.
“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” 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, with respect to a group of Assets (e.g. the 8” and 10” Lovington/Artesia Intermediate Pipelines), the effective date of the purchase of such Assets or the stock, partnership interests or membership interests of the entity that directly or indirectly owned such Assets, by a Partnership Entity.

5

“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).
“Eighth Amended Omnibus Agreement” is defined in the introduction to this Agreement.
“El Dorado Assets” is defined in the November 2011 Frontier Drop Down LLC Interest Purchase Agreement.
“El Dorado New Tank” means that certain petroleum products storage tank, which tank is being constructed in accordance with the specifications set forth in the El Dorado Throughput Agreement.
“El Dorado Throughput Agreement” is defined in the recitals to this Agreement
“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.
“Fifth Amended Omnibus Agreement” is defined in the recitals to this Agreement.
“First Amended Omnibus Agreement” is defined in the recitals to this Agreement.
“First ROFR Acceptance Deadline” is defined in Section 5.2(a). 
“Fourth Amended Omnibus Agreement” is defined in the recitals to this Agreement.
“General Partner” is defined in the introduction to this Agreement.

6

“Governmental Authority” means any federal, state, local or foreign government or any provincial, departmental or other political subdivision thereof, or any entity, body or authority exercising executive, legislative, judicial, regulatory, administrative or other governmental functions or any court, department, commission, board, bureau, agency, instrumentality or administrative body of any of the foregoing.
“Hazardous 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.
“HFRM” is defined in the recitals to this Agreement.
“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.
“Malaga Pipeline System” means the Pipeline System, as such term is defined in the Malaga TSA.
“Malaga TSA” is defined in the recitals to this Agreement.
“March 2010 Drop Down LLC Interest Purchase Agreement” is defined in the recitals to this Agreement.

7

“Navajo Pipeline” is defined in the introduction to this Agreement.
“November 2011 Frontier Drop Down LLC Interest Purchase Agreement” is defined in the recitals 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.
“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 amended pursuant to that certain Limited Partial Waiver of Incentive Distribution Rights, dated July 12, 2012, and as amended by that certain Amendment No. 4 to the First Amended and Restated Agreement of Limited Partnership of Holly Energy Partners, L.P., dated January 16, 2013, 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.

8

“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 conveyed, contributed or otherwise transferred to the Partnership Entities pursuant to the Contribution Agreement or otherwise.
“Roadrunner Pipeline” means 16” crude oil pipeline extending from Slaughter station in Texas to Lovington, New Mexico owned by Roadrunner Pipeline, L.L.C.
“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 Amended Omnibus Agreement” is defined in the recitals to this Agreement.
“Second ROFR Acceptance Deadline” is defined in Section 5.2(a).
“Seventh Amended Omnibus Agreement” is defined in the recitals to this Agreement.
“Sinclair Transferred Assets” means the HEP Tulsa Assets as defined in the Asset Sale and Purchase Agreement dated October 19, 2009 by and among Holly Tulsa, HEP Tulsa and Sinclair.
“Sixth Amended Omnibus Agreement” is defined in the recitals to this Agreement.
“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 

9

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.
“Third Amended Omnibus Agreement” is defined in the recitals to this Agreement.
“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 Interconnecting Pipelines” means the Interconnecting Pipelines as defined in the Tulsa Throughput Agreement.
“Tulsa Throughput Agreement” is defined in the recitals to this Agreement.
“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).
“UNEV LLC Interest Purchase Agreement” is defined in the recitals to this Agreement.
“UNEV Pipeline” means, collectively, an approximately 400 mile, 12-inch refined products pipeline currently running from Woods Cross, Utah to Las Vegas, Nevada, related products terminals in or near Cedar City, Utah to Las Vegas, Nevada and other related assets owned by UNEV Pipeline, LLC.  
“UNEV Profits Interest” means the membership interest in HEP UNEV held directly or indirectly by Holly.
“Units” is defined in the Partnership Agreement.

10

“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.
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;
(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; and

11

(f)    the ownership of the UNEV Profits Interest.
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 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 

12

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 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 

13

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 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 

14

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;
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 by Holly and its Affiliates of any assets not constituting part of the Assets, including but not limited to underground pipelines retained by the Holly Entities 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 to the extent not transferred to the Partnership Entities (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 performed 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, 

15

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:
(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;
but 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, the Beeson Pipeline, the Roadrunner Pipeline, the Tulsa Interconnecting Pipelines, the UNEV Pipeline, the Malaga Pipeline System (other than that certain 8” pipeline extending 50 miles from the White City Station that was formerly used as a refined products pipeline and that was conveyed to the Partnership Entities as part of the 2004 Product Pipelines, Terminal and Related Assets), or the El Dorado New Tank.
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 $17,500,000 would apply only to Covered Environmental Losses associated with the 8” and 10” Lovington/Artesia Intermediate Pipelines) and (2) $7.5 million in 

16

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 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, 

17

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.
(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 

18

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 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.
(c)    For the avoidance of doubt, any indemnification obligations of the Holly Entities in Article III with respect to any indemnifiable losses incurred by or attributable to the UNEV Pipeline shall be (i) limited to an amount that is the product of (x) the amount of such losses, multiplied by (y) HEP UNEV’s direct or indirect percentage ownership interest in the UNEV Pipeline 

19

at the time such losses were incurred and (ii) payable to, for the benefit of and recoverable solely by HEP UNEV or any Partnership Entity designated by HEP UNEV (and not by UNEV Pipeline, LLC).
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, the Sinclair Transferred Assets or the Additional Tulsa East Assets, though the parties hereto acknowledge the environmental indemnity provided among certain of the Holly Entities and HEP Entities with respect to the Sinclair Transferred Assets and the Additional Tulsa East Assets contained in the Tulsa Throughput Agreement.
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 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

20

(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.
(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 or the UNEV Pipeline, but shall expressly include the equity interests of UNEV Pipeline, LLC then owned directly or indirectly by the Partnership Entities. 
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 

21

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.
(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 

22

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.
(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.

23

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.  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 petroleum transportation 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 

24

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.

25

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:
	 
	 
	 

	 
	 
	HollyFrontier Corporation 
2828 N. Harwood, Suite 1300 
Dallas, Texas 75201 
Attention: President  
Email address:  president@hollyfrontier.com
	 
	 

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

	 
	 
	HollyFrontier Corporation 
2828 N. Harwood, Suite 1300 
Dallas, Texas 75201 
Attention:  General Counsel 
Email address: generalcounsel@hollyfrontier.com
	 

	 
	Notices to the Partnership Entities:
	 
	 

	 
	 
	Holly Energy Partners, L.P. 
c/o Holly Logistic Services, L.L.C. 
2828 N. Harwood, Suite 1300 
Dallas, Texas 75201 
Attention: President 
Email address:  president@hollyenergy.com
	 

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

	 
	 
	Holly Energy Partners, L.P. 
c/o Holly Logistic Services, L.L.C.  
2828 N. Harwood, Suite 1300 
Dallas, Texas 75201 
Attention:  General Counsel  
Email address: general.counsel@hollyenergy.com
	 

26

(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, together with the other agreements and instruments referred to herein, 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 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.

27

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

28

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.]

29

IN WITNESS WHEREOF, the Parties have executed this Agreement to be effective as of January 7, 2014.
	
				
	 
	 
	 
	HOLLY ENTITIES:
HOLLYFRONTIER CORPORATION
HOLLY REFINING & MARKETING COMPANY – WOODS CROSS LLC
NAVAJO REFINING COMPANY, L.L.C.
NAVAJO PIPELINE CO., L.P.
HOLLY REFINING & MARKETING 
– TULSA LLC
FRONTIER REFINING LLC
FRONTIER EL DORADO REFINING LLC

	
						
	 
	 
	 
	 
	By:
	/s/ Michael C. Jennings

	 
	 
	 
	 
	Name:
	Michael C. Jennings

	 
	 
	 
	 
	Title:
	Chief Executive Officer and President

[Signature Page 1 of 3 to Ninth Amended and Restated Omnibus Agreement]

	
									
	 
	 
	 
	 
	PARTNERSHIP ENTITIES:
HOLLY ENERGY PARTNERS, L.P.

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By:
	HEP Logistics Holdings, L.P.
Its General Partner

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By:
	Holly Logistic Services, L.L.C.
Its General Partner

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By:
	/s/ Bruce R. Shaw

	 
	 
	 
	 
	Title:
	President

	
			
	 
	 
	HOLLY ENERGY PARTNERS – OPERATING, L.P.
HOLLY LOGISTIC SERVICES, L.L.C.
HEP LOGISTICS GP, L.L.C.
HEP TULSA LLC
ROADRUNNER PIPELINE, L.L.C.
HOLLY ENERGY STORAGE – TULSA LLC
HOLLY ENERGY STORAGE – LOVINGTON LLC
CHEYENNE LOGISTICS LLC
EL DORADO LOGISTICS LLC
HEP UNEV HOLDINGS LLC
HEP UNEV PIPELINE LLC

	
						
	 
	 
	 
	 
	By:
	/s/ Bruce R. Shaw

	 
	 
	 
	 
	Name:
	Bruce R. Shaw

	 
	 
	 
	 
	Title:
	President

	
									
	 
	 
	 
	 
	HEP LOGISTICS HOLDINGS, L.P.

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

	 
	 
	 
	 
	 
	Its general partner

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By:
	/s/ Bruce R. Shaw

	 
	 
	 
	 
	Name:
	Bruce R. Shaw

	 
	 
	 
	 
	Title:
	President

[Signature Page 2 of 3 to Ninth Amended and Restated Omnibus Agreement]

	
										
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	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/ Bruce R. Shaw

	 
	 
	 
	 
	Name:
	Bruce R. Shaw

	 
	 
	 
	 
	Title:
	President                     

	
									
	 
	 
	 
	 
	HEP NAVAJO SOUTHERN, L.P.
HEP PIPELINE ASSETS, LIMITED PARTNERSHIP

	 
	 
	 
	 
	 

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

	 
	 
	 
	 
	 
	Its General Partner

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By:
	/s/ Bruce R. Shaw

	 
	 
	 
	 
	Name:
	Bruce R. Shaw

	 
	 
	 
	 
	Title:
	President

	
									
	 
	 
	 
	 
	HEP REFINING ASSETS, L.P.

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

	 
	 
	 
	 
	 
	Its General Partner

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	By:
	/s/ Bruce R. Shaw

	 
	 
	 
	 
	Name:
	Bruce R. Shaw

	 
	 
	 
	 
	Title:
	President

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

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}]]