Document:

exv10w1

 

Exhibit 10.1

MERRILL LYNCH BUSINESS FINANCIAL SERVICES INC.

222 North LaSalle Street

Chicago, IL 60601

June 30, 2007

Collegiate Pacific Inc.

13950 Senlac Drive, Suite 100

Dallas, TX 75234

			
	Attention:	 	Mr. William R. Estill,

Chief Financial Officer

Dear Bill:

     I refer to: (i) the Amended and Restated Credit Agreement dated as of November 13, 2006 (as
amended to date, the “Credit Agreement”) among Collegiate Pacific Inc.
(“Borrower”), Merrill Lynch Business Financial Services Inc. (the “Administrative
Agent”), as Administrative Agent, as a Lender, as Sole Bookrunner and Sole Lead Arranger, and
the additional Lenders from time to time party thereto and (ii) the Security Agreement dated as of
June 29, 2006 (the “Security Agreement”) between the Administrative Agent, through its
Merrill Lynch Capital division, and the Borrower. Capitalized terms used but not defined in this
letter agreement will have the meanings respectively assigned to those terms in the Credit
Agreement.

     At Borrower’s request, and for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, this will confirm our understanding and agreement as follows:

     The Credit Agreement is hereby amended as follows:

     1. Notwithstanding anything to the contrary contained in Section 4.1(m) of the Credit
Agreement (relating, among other things, to the delivery of certain operating plans, budgets and
financial forecasts), the items required to be delivered to the Lenders within ten (10) days prior
to the conclusion of the Fiscal Year ending June 30, 2007 may be delivered to the Lenders no later
than July 31, 2007.

     2. The words “fifteen (15)” set forth in Section 4.1(n) of the Credit Agreement (relating,
among other things, to the delivery of Borrowing Base Certificates) are hereby deleted and the
words “twenty-one (21)” are hereby added in their place.

     3. The words “fifteen (15) Business Days” set forth in Section 4.1(o) of the Credit Agreement
(relating, among other things, to the delivery of certain sales information), are hereby deleted
and the words “twenty-one (21) days” are hereby added in their place.

 

 

     4. The words “fifteen (15) Business Days” set forth in Section 4.1(p) of the Credit Agreement
(relating, among other things, to the delivery of certain Inventory reports, Accounts agings,
accounts payable agings and other reports), are hereby deleted and the words “twenty-one (21) days”
are hereby added in their place.

     5. Section 7.1 of the Credit Agreement is hereby amended and restated in its entirety to read
as follows:

     “Borrower will not permit the Fixed Charge Coverage Ratio at any time during any of the
following periods (as of any date of calculation for the twelve (12) month period ending on such
date) to be less than the ratio set forth for such period: (a) during the period from and including
the date hereof to and including June 30, 2008, 1.15 to 1.00 and (b) during the period from and
including July 1, 2008 and at all times thereafter, 1.20 to 1.00.”

     6. Section 7.3 of the Credit Agreement is hereby amended and restated in its entirety to read
as follows:

     “Borrower will not permit the aggregate amount of Capital Expenditures during any Fiscal Year
of Borrower (commencing with the fiscal year of Borrower ending June 30, 2007) to exceed
$3,000,000, provided, however, that from the period from and including January 1,
2008 to and including December 31, 2008, the Borrower may incur an additional $2,000,000 of Capital
Expenditures in connection with the purchase of certain computer hardware and software for Dixie
Sporting Goods Co., Inc. and Kesslers Team Sports, Inc.”

     7. Page 7 of Exhibit B the Credit Agreement is hereby deleted and a new Page 7 of Exhibit B,
in the form attached hereto as Annex I, is hereby inserted in its place

     8. The Borrower has advised the Administrative Agent that on or around June 30, 2007: (i)
Sport Supply Group, Inc. and Tomark Sports, Inc. shall merge with and into the Borrower with the
Borrower as the surviving corporation (the “Merger”) and (ii) at or about the effective
time of the Merger, the Borrower will change its name to “Sport Supply Group, Inc.” (the “Name
Change”). The Borrower has requested that the Administrative Agent consent to the Merger and
Name Change. Notwithstanding Sections 5.7 and 5.10 of the Credit Agreement and Section 4.1 of the
Security Agreement, but provided that no Event of Default or Default exists at the time of the
Merger and Name Change, the Administrative Agent hereby consents to the Merger and the Name Change.
The Borrower hereby covenants and agrees that it shall furnish to the Administrative Agent written
notice of each of the Merger and the Name Change no later than one (1) Business Day after the
occurrence of same.

     9. The parties acknowledge that the Administrative Agent is Merrill Lynch Business Financial
Services Inc., and all references to “Merrill Lynch” and the “Administrative Agent” in the Credit
Agreement and the other Operative Documents shall be considered to be references to Merrill Lynch
Business Financial Services Inc.

     Except as amended hereby, the Operative Documents shall remain in full force and effect in
accordance with their respective terms.

2

 

     This letter agreement shall be governed by, and construed and enforced in accordance with, the
laws of the State of Illinois, without regard to principles of conflicts of law.

[Signature Pages Follow]

3

 

     Please confirm your agreement to this letter agreement, by signing this letter below where
indicated and returning it by email to brian_talty@ml.com and by returning the original by mail.

Very truly yours,

MERRILL LYNCH BUSINESS FINANCIAL SERVICES INC., as

Administrative Agent and as a Lender

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Brian Talty
 	 
	 	 	     Brian Talty, Vice President 	 
	 	 	 	 
	 

	 	 	 	 	 
	Consented to and Agreed:	 	 
	 
	 	 	 	 
	BANK OF AMERICA, N.A.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Charles Dale	 	 
	 

	 	 	 	 
	Name: Charles Dale

	 	 
	Title: Vice President	 	 
	 
	 	 	 	 
	WELLS FARGO BANK, N.A.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jay W. Denny	 	 
	 

	 	 	 	 
	Name: Jay W. Denny	 	 
	Title: Senior Vice President	 	 
	 
	 	 	 	 
	COLLEGIATE PACIFIC INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Adam Blumenfeld	 	 
	 

	 	 	 	 
	Name: Adam Blumenfeld	 	 
	Title: CEO	 	 
	 
	 	 	 	 
	SPORT SUPPLY GROUP, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Terrence M. Babilla	 	 
	 

	 	 	 	 
	Name: Terrence M. Babilla	 	 
	Title: President	 	 

4

 

	 	 	 	 	 
	TOMARK SPORTS, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Adam Blumenfeld	 	 
	 

	 	 	 	 
	Name: Adam Blumenfeld	 	 
	Title: CEO	 	 
	 
	 	 	 	 
	KESSLERS TEAM SPORTS, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Adam Blumenfeld	 	 
	 

	 	 	 	 
	Name: Adam Blumenfeld	 	 
	Title: CEO	 	 
	 
	 	 	 	 
	DIXIE SPORTING GOODS CO., INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Adam Blumenfeld	 	 
	 

	 	 	 	 
	Name: Adam Blumenfeld	 	 
	Title: CEO	 	 

5

 

ANNEX I

CAPITAL EXPENDITURES 

(SECTION 7.3)

	 	 	 	 	 	 	 
	Capital Expenditures for the applicable measurement period
(the “Defined Period”) are defined as follows:

	 	 		 	$ 	     
	 
	 	 	 	 	 	     
	 
	 	 	 	 	 	 
	Amount capitalized during the Defined Period by Borrower and
its Consolidated Subsidiaries as capital expenditures for
property, plant, and equipment or similar fixed asset
accounts, including any such expenditures by way of
acquisition of a Person or by way of assumption of Debt or
other obligations, to the extent reflected as plant, property
and equipment, but in each case excluding the effect of any
Section 5.8(b) Permitted Acquisition or Section 5.8(c)
Permitted Acquisition

	 	 	 	 	 	     
	 

	 	 	 	 	 	     

	 	 	 	 	 
	Plus:

	 	deposits made in the Defined Period in connection with
property, plant, and equipment; less deposits of a prior
period included above
	 	     
	 
	 	 	 	 
	Less:

	 	Net Cash Proceeds of Asset Dispositions received during
the Defined Period which (i) Borrower or a Subsidiary is
permitted to reinvest pursuant to the terms of the Credit
Agreement and (ii) are included in capital expenditures above
	 	     
	 
	 	 	 	 
	 

	 	Proceeds of Property Insurance Policies received
during the Defined Period which (i) Borrower or a
Subsidiary is permitted to reinvest pursuant to
the terms of the Credit Agreement and (ii) are
included in capital expenditures above
	 	     

	 	 	 	 	 	 	 
	Additional Capital Expenditures for the period of January 1,
2008 to December 31, 2008 pursuant to Section 7.3 of the
Credit Agreement

	 	 	$	 	 	     
	 

	 	 	 	 	 
	 
	 	 	 	 	 	 
	Capital Expenditures

	 	 	$	 	 	     
	 

	 	 	 	 	 
	 
	 	 	 	 	 	 
	Permitted Capital Expenditures

	 	 	$	 	 	     
	 

	 	 	 	 	 
	 
	 	 	 	 	 	 
	In Compliance

	 	 	 	 	Yes/No

Exhibit B
– Page 7exv10w1

 

EXHIBIT 10.1

AMENDED AND RESTATED

CREDIT AGREEMENT

Dated as of

June 29, 2007

among

SOUTHWEST CONVENIENCE STORES, LLC,

as Borrower

The Lenders Party Hereto,

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Administrative Agent

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I Definitions
	 	 	 1	 
	SECTION 1.01 Defined Terms
	 	 	1	 
	SECTION 1.02 Terms Generally
	 	 	15	 
	SECTION 1.03 Accounting Terms; GAAP
	 	 	16	 
	SECTION 1.04 UCC Changes
	 	 	16	 
	 
	 	 	 	 
	ARTICLE II The Credits
	 	 	16	 
	SECTION 2.01 Commitments
	 	 	16	 
	SECTION 2.02 Loans and Borrowings
	 	 	17	 
	SECTION 2.03 Requests for Borrowings
	 	 	17	 
	SECTION 2.04 Reserved
	 	 	18	 
	SECTION 2.05 Funding of Borrowings
	 	 	18	 
	SECTION 2.06 Interest Elections
	 	 	18	 
	SECTION 2.07 Termination and Reduction of Commitments
	 	 	20	 
	SECTION 2.08 Repayment of Loans; Evidence of Debt
	 	 	20	 
	SECTION 2.09 Prepayment of Loans
	 	 	22	 
	SECTION 2.10 Fees
	 	 	22	 
	SECTION 2.11 Interest
	 	 	23	 
	SECTION 2.12 Taxes
	 	 	23	 
	SECTION 2.13 Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	24	 
	SECTION 2.14 Mitigation Obligations; Replacement of Lenders
	 	 	26	 
	 
	 	 	 	 
	ARTICLE III Yield Protection and Illegality
	 	 	27	 
	SECTION 3.01 Increased Costs
	 	 	27	 
	SECTION 3.02 Alternate Rate of Interest
	 	 	28	 
	SECTION 3.03 Illegality
	 	 	28	 
	SECTION 3.04 Treatment of Affected Borrowings
	 	 	29	 
	SECTION 3.05 Break Funding Payments
	 	 	29	 
	 
	 	 	 	 
	ARTICLE IV Security
	 	 	30	 
	SECTION 4.01 Collateral
	 	 	30	 
	 
	 	 	 	 
	ARTICLE V Representations and Warranties
	 	 	31	 
	SECTION 5.01 Organization; Powers
	 	 	31	 
	SECTION 5.02 Authorization; Enforceability
	 	 	31	 

 

 

Table of Contents

continued

	 	 	 	 	 
	 	 	Page	 
	SECTION 5.03 Governmental Approvals; No Conflicts
	 	 	31	 
	SECTION 5.04 Financial Condition; No Material Adverse Change
	 	 	31	 
	SECTION 5.05 Properties
	 	 	32	 
	SECTION 5.06 Litigation and Environmental Matters
	 	 	32	 
	SECTION 5.07 Compliance with Laws and Agreements
	 	 	33	 
	SECTION 5.08 Investment and Holding Company Status
	 	 	33	 
	SECTION 5.09 Taxes
	 	 	33	 
	SECTION 5.10 ERISA
	 	 	33	 
	SECTION 5.11 Disclosure
	 	 	34	 
	SECTION 5.12 Indebtedness
	 	 	34	 
	SECTION 5.13 Subsidiaries
	 	 	34	 
	SECTION 5.14 Inventory
	 	 	34	 
	SECTION 5.15 Patents, Trademarks and Copyrights
	 	 	34	 
	SECTION 5.16 Margin Securities
	 	 	35	 
	SECTION 5.17 Labor Matters
	 	 	35	 
	SECTION 5.18 Solvency
	 	 	35	 
	SECTION 5.19 Reserved
	 	 	35	 
	SECTION 5.20
Permits, Licenses, Etc.
	 	 	35	 
	 
	 	 	 	 
	ARTICLE VI Conditions
	 	 	36	 
	SECTION 6.01 Effective Date
	 	 	36	 
	SECTION 6.02 Each Credit Event
	 	 	39	 
	 
	ARTICLE VII Affirmative Covenants
	 	 	40	 
	SECTION 7.01 Financial Statements and Other Information
	 	 	40	 
	SECTION 7.02 Notices of Material Events
	 	 	41	 
	SECTION 7.03 Existence; Conduct of Business
	 	 	41	 
	SECTION 7.04 Payment of Obligations
	 	 	42	 
	SECTION 7.05 Maintenance of Properties
	 	 	42	 
	SECTION 7.06 Books and Records; Inspection Rights
	 	 	42	 
	SECTION 7.07 Insurance
	 	 	42	 
	SECTION 7.08 Compliance with Laws
	 	 	43	 
	SECTION 7.09 Use of Proceeds
	 	 	43	 
	SECTION 7.10 Compliance with Agreements
	 	 	43	 
	SECTION 7.11 Additional Subsidiaries
	 	 	43	 
	SECTION 7.12 Skinney’s Acquisition
	 	 	43	 
	SECTION 7.13 Environmental Matters
	 	 	44	 
	SECTION 7.14 Further Assurances
	 	 	44	 

-ii-

 

Table of Contents

continued

	 	 	 	 	 
	 	 	Page	 
	SECTION 7.15 Ratification
	 	 	44	 
	 
	 	 	 	 
	ARTICLE
VIII Negative Covenants
	 	 	44	 
	SECTION 8.01 Indebtedness
	 	 	44	 
	SECTION 8.02 Liens
	 	 	45	 
	SECTION 8.03 Fundamental Changes
	 	 	46	 
	SECTION 8.04 Investments, Loans, Advances, Guarantees and Acquisitions
	 	 	46	 
	SECTION 8.05 Hedging Agreements
	 	 	47	 
	SECTION 8.06 Restricted Payments; Certain Payments of Indebtedness
	 	 	47	 
	SECTION 8.07 Transactions with Affiliates
	 	 	48	 
	SECTION 8.08 Restrictive Agreements
	 	 	48	 
	SECTION 8.09 Disposition of Assets
	 	 	49	 
	SECTION 8.10 Sale and Leaseback
	 	 	49	 
	SECTION 8.11 Accounting
	 	 	50	 
	SECTION 8.12 Amendment of Material Documents
	 	 	50	 
	SECTION 8.13 Preferred Equity Interests
	 	 	50	 
	SECTION 8.14 Synthetic Repurchases
	 	 	50	 
	 
	 	 	 	 
	ARTICLE IX Financial Covenants
	 	 	50	 
	SECTION 9.01 Fixed Charge Coverage Ratio
	 	 	50	 
	 
	 	 	 	 
	ARTICLE X Events of Default
	 	 	51	 
	SECTION 10.01 Default
	 	 	51	 
	SECTION 10.02 Performance by the Administrative Agent
	 	 	54	 
	 
	 	 	 	 
	ARTICLE XI The Administrative Agent
	 	 	54	 
	 
	 	 	 	 
	ARTICLE XII Miscellaneous
	 	 	56	 
	SECTION 12.01 Notices
	 	 	56	 
	SECTION 12.02 Waivers; Amendments
	 	 	57	 
	SECTION 12.03 Expenses; Indemnity; Damage Waiver
	 	 	58	 
	SECTION 12.04 Successors and Assigns
	 	 	60	 
	SECTION 12.05 Survival
	 	 	64	 
	SECTION 12.06 Counterparts; Effectiveness
	 	 	64	 
	SECTION 12.07 Severability
	 	 	64	 
	SECTION 12.08 Right of Setoff
	 	 	64	 
	SECTION 12.09 GOVERNING LAW; VENUE; SERVICE OF PROCESS
	 	 	65	 
	SECTION 12.10 WAIVER OF JURY TRIAL
	 	 	65	 

-iii-

 

Table of Contents

continued

	 	 	 	 	 
	 	 	Page	 
	SECTION 12.11 Headings
	 	 	65	 
	SECTION 12.12 Confidentiality
	 	 	65	 
	SECTION 12.13 Maximum Interest Rate
	 	 	66	 
	SECTION 12.14 Non-Application of Chapter 346 of Texas Finance Code
	 	 	66	 
	SECTION 12.15 NO ORAL AGREEMENTS
	 	 	67	 
	SECTION 12.16 No Fiduciary Relationship
	 	 	67	 
	SECTION 12.17 Construction
	 	 	67	 

EXHIBITS

	 	 	 
	“A”

	 	Form of Term Note
	“B”

	 	Borrowing Request Form
	“C”

	 	Security Agreement
	“D”

	 	Guaranty
	“E”

	 	Contribution and Indemnification Agreement
	“F”

	 	Compliance Certificate
	“G”

	 	Reserved
	“H”

	 	Assignment and Assumption

SCHEDULES

	 	 	 
	1.01

	 	Lenders and Commitments
	5.06

	 	Disclosed Matters
	5.13

	 	Subsidiaries
	5.15

	 	Patents, Trademarks and Copyrights
	8.01

	 	Existing Indebtedness
	8.02

	 	Existing Liens
	8.08

	 	Existing Restrictive Agreements
	8.09(i)

	 	Transferable Stores

-iv-

 

AMENDED AND RESTATED CREDIT AGREEMENT

     THIS AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”) dated as of June 29,
2007, among SOUTHWEST CONVENIENCE STORES, LLC, a Texas limited liability company, as Borrower, the
LENDERS party hereto, and WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association, as
Administrative Agent.

R E C I T A L S:

     A. The Borrower, the Lenders, and Wachovia Bank, National Association, as Administrative
Agent, previously entered into that certain Credit Agreement dated as of June 6, 2006, as amended
by that certain First Amendment to Credit Agreement dated as of January 29, 2007 (as amended, the
“Existing Credit Agreement”), pursuant to which the Lenders extended credit to the Borrower
in the form of a revolving credit facility and term facility, all on the terms and conditions set
forth therein.

     B. The Lenders are willing to extend credit to the Borrower in the form of a term facility not
to exceed an aggregate principal amount of $95,000,000, upon and subject to the terms and
conditions set forth herein.

     C. The parties hereto desire to amend the Existing Credit Agreement as hereinafter provided
and have agreed for purposes of clarity and ease of administration, to amend the Existing Credit
Agreement and then restate the Existing Credit Agreement in its entirety by means of this
Agreement.

     NOW THEREFORE, in consideration of the premises and the mutual covenants herein contained, the
parties hereto agree as follows, and the Existing Credit Agreement is hereby amended and restated
in its entirety as follows:

ARTICLE I

Definitions

     SECTION 1.01 Defined Terms. As used in this Agreement, the following terms have the
meanings specified below:

     “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to
the Alternate Base Rate.

     “Acquisition” means any transaction or series of related transactions for the direct
or indirect (a) acquisition of all or substantially all of the property of a Person, or of any
business or division of a Person, (b) acquisition of in excess of 50% of the Equity Interests of
any Person, or

Page 1

 

otherwise causing any Person to become a Subsidiary, or (c) a merger or consolidation or any
other combination with another Person.

     “Acquisition Documents” means all documents executed or provided in connection with
any Acquisition.

     “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to
(a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

     “Administrative Agent” means Wachovia Bank, National Association in its capacity as
administrative agent for the Lenders hereunder.

     “Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Administrative Agent.

     “Affiliate” means, with respect to a specified Person, another Person that directly,
or indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

     “Alon Interests” means Alon USA Interests, LLC, a Texas limited liability company.

     “Alon USA” means Alon USA Energy, Inc., a Delaware corporation

     “ALOSKI” means ALOSKI, LLC, a Texas limited liability company and wholly-owned
subsidiary of Alon Interests, which limited liability company shall change its name to “Skinny’s,
LLC” immediately after the consummation of the Skinny’s Acquisition. Any reference herein to
“ALOSKI” also means “Skinny’s, LLC”.

     “Alternate Base Rate” means, for any day, a rate per annum equal to the Prime Rate in
effect on such day. Any change in the Alternate Base Rate due to a change in the Prime Rate shall
be effective from and including the effective date of such change in the Prime Rate.

     “Applicable Margin” means, for any day, (a) with respect to the Loans comprising each
Eurodollar Borrowing, 1.50% over the Adjusted LIBO Rate that is applicable when any interest rate
based on the Adjusted LIBO Rate is determined under this Agreement, and (b) with respect to the
Loans comprising each ABR Borrowing, 0.0% over the Alternate Base Rate that is applicable when any
interest rate based on the Alternate Base Rate is determined under this Agreement.

     “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section 12.04),
and accepted by the Administrative Agent, in the form of Exhibit “H” or any other form approved by
the Administrative Agent.

     “Board” means the Board of Governors of the Federal Reserve System of the United
States of America.

Page     2

 

     “Borrower” means Southwest Convenience Stores, LLC, a Texas limited liability company.

     “Borrowing” means Loans of the same Class and Type, made, converted or continued on
the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in
effect.

     “Borrowing Request” means a request by the Borrower for a Borrowing in accordance with
Section 2.03.

     “Borrowing Request Form” means a certificate in substantially the form of Exhibit “B”,
properly completed and signed by the Borrower requesting a Borrowing or a conversion or
continuation of a Borrowing.

     “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in Dallas, Texas are authorized or required by law to remain closed;
provided that, when used in connection with a Eurodollar Loan, the term “Business
Day” shall also exclude any day on which banks are not open for dealings in dollar deposits in
the London interbank market.

     “Capital Expenditures” means, for any period, the additions or replacement to
property, plant and equipment and other capital expenditures of the Borrower, ALOSKI and their
respective Subsidiaries that are (or would be) set forth in a consolidated statement of cash flows
of the Borrower, ALOSKI and their respective Subsidiaries, for such period prepared in accordance
with GAAP.

     “Capital Lease Obligations” of any Person means the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

     “Change in Control” means any event, transaction or occurrence as a result of which
Alon USA at any time own and control (directly or indirectly through various subsidiaries) less
than 51% of the economic and voting rights associated with all of the outstanding Equity Interests
of all classes of Borrower.

     “Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender (or, for purposes of Section 3.01(b), by any lending office of such Lender
or by such Lender’s holding company, if any) with any request, guideline or directive (whether or
not having the force of law) of any Governmental Authority made or issued after the date of this
Agreement.

Page     3

 

     “Class” means when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are Revolving Loans or Term Loans and, when used in
reference to any Commitment, refers to a Term Loan Commitment.

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

     “Collateral” has the meaning specified in Section 4.01.

     “Commitment” means a Term Loan Commitment.

     “Compliance Certificate” means a certificate of a Financial Officer of the Borrower,
or Alon USA on behalf of the Borrower, in the form of Exhibit “F” hereto.

     “Consolidated EBITDA” means, for each period of determination, the sum of EBITDA of
the Borrower, ALOSKI and their respective Subsidiaries, on a consolidated basis for such period.

     “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

     “Contribution and Indemnification Agreement” means a contribution and indemnification
agreement of the Borrower and each Guarantor, in substantially the form of Exhibit “E”, as the same
may be amended, supplemented, or modified from time to time.

     “Default” means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

     “Disclosed Matters” means the actions, suits and proceedings and the environmental
matters disclosed in Schedule 5.06.

     “dollars” or “$” refers to lawful money of the United States of America.

     “EBITDA” means, for each period of determination for any Person and its subsidiaries
on a consolidated basis, the sum of (a) consolidated net income from ordinary operations of such
Person and its subsidiaries for such period (whether positive or negative), plus, (b) each of the
following of such Person and its subsidiaries for such period to the extent actually deducted in
arriving at consolidated net income of such Person and its subsidiaries for such period and without
duplication: depreciation, amortization, taxes and interest expense, plus (c) minority Equity
Interests holders’ interest in income of subsidiaries of such Person. Without in any way limiting
the generality of the foregoing, consolidated net income from ordinary operations for any period
shall not include the effect of (i) gains for such period from any sale, exchange or other
disposition of any property or assets (other than sales of inventory in the ordinary course of
business), (ii) gains in excess of expenses for such period from any legal settlements or
collection of life insurance proceeds, (iii) any write-up of any asset, or (iv) non-cash charges,
non-recurring charges and extraordinary charges.

Page     4

 

     “Effective Date” means the date on which the conditions specified in Section 6.01 are
satisfied (or waived in accordance with Section 12.02).

     “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into
by any Governmental Authority, relating in any way to the environment, preservation or reclamation
of natural resources, the management, release or threatened release of any Hazardous Material or to
health and safety matters.

     “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the
Borrower, ALOSKI or any of their respective Subsidiaries directly or indirectly resulting from or
based upon (a) violation of any Environmental Law, (b) the generation, use, handling,
transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any
Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the
environment or (e) any contract, agreement or other consensual arrangement pursuant to which
liability is assumed or imposed with respect to any of the foregoing.

     “Equity Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity or
ownership interests in a Person.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time.

     “ERISA Affiliate” means any trade or business (whether or not incorporated) that,
together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code
or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single
employer under Section 414 of the Code.

     “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day
notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived;
(c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application
for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the
Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to
the termination of any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC
or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to
appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA
Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the
receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is,
or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

Page     5

 

     “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate.

     “Event of Default” has the meaning assigned to such term in Article X.

     “Excluded Taxes” means, with respect to the Administrative Agent, any Lender or any
other recipient of any payment to be made by or on account of any obligation of the Borrower
hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by the United
States of America, or by the jurisdiction under the laws of which such recipient is organized or in
which its principal office is located or, in the case of any Lender, in which its applicable
lending office is located, (b) any branch profits taxes imposed by the United States of America or
any similar tax imposed by any other jurisdiction in which the Borrower is located and (c) in the
case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under
Section 2.14(b)), any withholding tax that is imposed on amounts payable to such Foreign Lender at
the time such Foreign Lender becomes a party to this Agreement (or designates a new lending office)
or is attributable to such Foreign Lender’s failure to comply with Section 2.12(e), except to the
extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation
of a new lending office (or assignment), to receive additional amounts from the Borrower with
respect to such withholding tax pursuant to Section 2.12(a).

     “Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve, The Bank of New York, or, if
such rate is not so published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received
by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

     “Financial Officer” means the chief financial officer, principal accounting officer,
treasurer or controller of the Borrower.

     “Fixed Charge Coverage Ratio” means as of each date of determination, the ratio of (a)
the sum of the following for the Borrower, ALOSKI and their respective Subsidiaries on a
consolidated basis for the 12-month period ended on such date of determination (i) Consolidated
EBITDA, less (ii) cash taxes during such period, to (b) the sum of the following for the Borrower,
ALOSKI and their respective Subsidiaries on a consolidated basis for the 12-month period ended on
such date of determination: (i) regularly scheduled principal payments of Indebtedness scheduled
to be paid during such period, whether or not actually paid, plus (ii) interest expense during
such period (but excluding principal payments and interest expense on any Indebtedness of the
Borrower to any Guarantor and of any Guarantor to the Borrower or any other Guarantor).

     “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which the Borrower is located. For purposes of this definition, the United

Page     6

 

States of America, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

     “Foreign Subsidiary” means any Subsidiary that is organized under the laws of a
jurisdiction other than the United States of America or any state thereof or the District of
Columbia.

     “GAAP” means generally accepted accounting principles in the United States of America.

     “Good Time Acquisition” means the acquisition by Alon Interests of 100% of the Equity
Interests in Good Time Enterprise pursuant to that certain Purchase Agreement dated March 27, 2006
by and among Alon Interests, Good Time Enterprise, LLC, a Delaware limited liability company, Good
Time Inter-Holding, LLC, a Delaware limited liability company, and Good Time Stores, Inc., a
Delaware corporation.

     “Governmental Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

     “Guarantee” of or by any Person (the “guarantor”) means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase
or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds
for the purchase of) any security for the payment thereof, (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (c) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any
letter of credit or letter of guaranty issued to support such Indebtedness or obligation;
provided, that the term Guarantee shall not include endorsements for collection or deposit
in the ordinary course of business.

     “Guarantors” means Alon USA, Alon Interests, ALOSKI, GTS Licensing Company, Inc.
Abilene Pump & Electric Inc., and all of the Subsidiaries of Borrower, ALOSKI, Abilene Pump &
Electric Inc. and/or GTS Licensing Company, Inc. as of the Effective Date (except any Foreign
Subsidiary) and each other Subsidiary that at any time executes a Guaranty in favor of the
Administrative Agent and the Lenders.

     “Guaranty” means the guaranty agreement of each Guarantor in favor of the
Administrative Agent and the Lenders, in substantially the form of Exhibit “D” hereto, as the same
may be amended, supplemented, or modified from time to time.

Page     7

 

     “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.

     “Hedging Agreement” means any swap agreement as defined in 11 U.S.C. §101.

     “Indebtedness” of any Person means, without duplication, (a) all obligations of such
Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations
of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of
such Person upon which interest charges are customarily paid, (d) all obligations of such Person
under conditional sale or other title retention agreements relating to property acquired by such
Person, (e) all obligations of such Person in respect of the deferred purchase price of property or
services (excluding current accounts payable incurred in the ordinary course of business), (f) all
obligations secured by (or for which the holder of such obligations has an existing right,
contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person,
whether or not the obligations secured thereby have been assumed, (g) all Guarantees by such Person
of Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i) all obligations,
contingent or otherwise, of such Person in respect of letters of credit, letters of guaranty,
bankers’ acceptances, surety or other bonds and similar instruments, (j) all liabilities of such
Person in respect of unfunded vested benefits under any Plan and (k) payment obligations with
respect to Hedging Agreements, provided that for purposes of this definition, the amount of the
obligation of any Person under any Hedging Agreement shall be the amount determined, in respect
thereof as of the end of the most recently ended month, based on the assumption that such Hedging
Agreement has terminated at the end of such month, and in making such determination, if such
Hedging Agreement provides for the netting of amounts payable by and to each party thereto or if
any Hedging Agreement provides for the simultaneous payment of amounts by and to each party, then
in each such case, the amount of such obligation shall be the net amount so determined. The
Indebtedness of any Person shall include the Indebtedness of any other entity (including any
partnership in which such Person is a general partner) to the extent such Person is liable therefor
as a result of such Person’s ownership interest in or other relationship with such entity, except
to the extent the terms of such Indebtedness provide that such Person is not liable therefor.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Interest Election Request” means a request by the Borrower to convert or continue a
Borrowing in accordance with Section 2.06.

     “Interest Payment Date” means (a) with respect to any ABR Loan, the 1st day
of each month and (b) with respect to any Eurodollar Loan, the last day of the Interest Period
applicable to the Borrowing of which such Loan is a part.

     “Interest Period” means, with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically corresponding day in the
calendar month that is one, three or six months thereafter, as the Borrower may elect, and

Page     8

 

provided, that (i) if any Interest Period would end on a day other than a Business
Day, such Interest Period shall be extended to the next succeeding Business Day unless such next
succeeding Business Day would fall in the next calendar month, in which case such Interest Period
shall end on the next preceding Business Day and (ii) any Interest Period that commences on the
last Business Day of a calendar month (or on a day for which there is no numerically corresponding
day in the last calendar month of such Interest Period) shall end on the last Business Day of the
last calendar month of such Interest Period. For purposes hereof, the date of a Borrowing
initially shall be the date on which such Borrowing is made and thereafter shall be the effective
date of the most recent conversion or continuation of such Borrowing.

     “Lender Affiliate” means, (a) with respect to any Lender, (i) an Affiliate of such
Lender or (ii) any entity (whether a corporation, partnership, trust or otherwise) that is engaged
in making, purchasing, holding or otherwise investing in bank loans and similar extensions of
credit in the ordinary course of its business and is administered or managed by a Lender or an
Affiliate of such Lender and (b) with respect to any Lender that is a fund which invests in bank
loans and similar extensions of credit, any other fund that invests in bank loans and similar
extensions of credit and is managed by the same investment advisor as such Lender or by an
Affiliate of such investment advisor.

     “Lenders” means the Persons listed on Schedule 1.01 and any other Person that shall
have become a party hereto pursuant to an Assignment and Assumption, other than any such Person
that ceases to be a party hereto pursuant to an Assignment and Assumption.

     “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
the rate appearing on Page 3750 of the Moneyline Telerate Markets (or on any successor or
substitute page of such Service, or any successor to or substitute for such Service, providing rate
quotations comparable to those currently provided on such page of such Service, as determined by
the Administrative Agent from time to time for purposes of providing quotations of interest rates
applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period, as the rate for dollar
deposits with a maturity comparable to such Interest Period. In the event that such rate is not
available at such time for any reason, then the “LIBO Rate” with respect to such Eurodollar
Borrowing for such Interest Period shall be the rate at which dollar deposits of $5,000,000 and for
a maturity comparable to such Interest Period are offered by the principal London office of the
Administrative Agent in immediately available funds in the London interbank market at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period.

     “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same economic effect as any of
the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call
or similar right of a third party with respect to such securities.

     “Loan Documents” means this Agreement and all promissory notes, security agreements,
pledge agreements, deeds of trust, assignments, guaranties, subordination agreements, and other

Page     9

 

instruments, documents, and agreements executed and delivered pursuant to or in connection
with this Agreement, as such instruments, documents, and agreements may be amended, modified,
renewed, extended, or supplemented from time to time, but the term “Loan Documents” shall not
include Hedging Agreements.

     “Loans” means the loans made by the Lenders to the Borrower pursuant to this
Agreement.

     “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
property, operations, condition (financial or otherwise) or prospects, of the Borrower, ALOSKI and
their respective Subsidiaries taken as a whole, (b) the ability of the Borrower to pay and perform
any of the material Obligations, (c) the ability of the Guarantors, collectively, to pay and
perform any of the material Obligations, (d) any of the material rights of or benefits available to
the Administrative Agent and the Lenders under this Agreement or any of the other Loan Documents,
or (e) the validity or enforceability of this Agreement or any of the other Loan Documents.

     “Material Indebtedness” means Indebtedness (other than the Loans), including
obligations in respect of one or more Hedging Agreements, and contractual obligations of any one or
more of the Borrower, ALOSKI and their respective Subsidiaries in an aggregate principal amount
exceeding $500,000. For purposes of determining Material Indebtedness, the “principal amount” of
the obligations of any of the Borrower, ALOSKI and their respective Subsidiaries in the aggregate
in respect of any Hedging Agreement at any time shall be the amount of its payment obligations
thereunder determined as provided in clause (k) of the definition of “Indebtedness” set forth in
this Section 1.01.

     “Maximum Rate” means, at any time and with respect to any Lender, the maximum rate of
interest under applicable law that such Lender may charge the Borrower. The Maximum Rate shall be
calculated in a manner that takes into account any and all fees, payments, and other charges in
respect of the Loan Documents that constitute interest under applicable law. Each change in any
interest rate provided for herein based upon the Maximum Rate resulting from a change in the
Maximum Rate shall take effect without notice to the Borrower at the time of such change in the
Maximum Rate. For purposes of determining the Maximum Rate under Texas law, the applicable rate
ceiling shall be the weekly ceiling described in, and computed in accordance with, Chapter 303 of
the Texas Finance Code.

     “Moody’s” means Moody’s Investors Service, Inc.

     “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

     “Notes” means the Term Notes.

     “Obligations” means (i) all obligations (including, but not limited to the Treasury
Obligations), indebtedness, and liabilities of Alon USA and Alon Interests to the Administrative
Agent and the Lenders, or any of them, arising pursuant to the Guaranty, and (ii) all obligations
(including, but not limited to the Treasury Obligations), indebtedness, and liabilities of

Page     10

 

Borrower, ALOSKI and their respective Subsidiaries, or any of them, to the Administrative
Agent and the Lenders, or any of them, arising pursuant to any of the Loan Documents or Hedging
Agreements, now existing or hereafter arising, whether direct, indirect, related, unrelated, fixed,
contingent, liquidated, unliquidated, joint, several, or joint and several, and all interest
accruing thereon and all attorneys’ fees and other expenses incurred in the enforcement or
collection thereof.

     “Obligors” means the Borrower and the Guarantors.

     “Other Taxes” means any and all present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies arising from any payment made hereunder
or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement.

     “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
and any successor entity performing similar functions.

     “Permitted Acquisitions” means acquisition (by construction, purchase, through a
merger or otherwise) (i) assets or a line of business which constitute or comprise Growth Assets or
Additional Assets or (ii) Equity Interests of a Person, provided that such person shall be a going
concern and shall be in a similar line of business as that of the Borrower, ALOSKI and their
respective Subsidiaries as conducted during such time; provided that at the time of any transaction
described in (i) or (ii) above (x) no Default is existing or would result therefrom; (y) the
aggregate consideration paid in connection with such acquisition and any related acquisitions
pursuant to this paragraph shall not exceed $25,000,000 in the aggregate and (z) the acquisition
shall not result in a Lien on any of the Collateral except in favor of Administrative Agent.

     “Permitted Encumbrances” means:

	 	(a)	 	Liens imposed by law for taxes that are not yet due or are being contested in
compliance with Section 7.04;
	 
	 	(b)	 	carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, landlords’
and other like Liens imposed by law, arising in the ordinary course of business and
securing obligations that are not overdue by more than 30 days or are being contested
in compliance with Section 7.04;
	 
	 	(c)	 	pledges and deposits made in the ordinary course of business in compliance with
workers’ compensation, unemployment insurance and other social security laws or
regulations;
	 
	 	(d)	 	deposits to secure the performance of bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like
nature, in each case in the ordinary course of business;
	 
	 	(e)	 	judgment liens in respect of judgments that do not constitute an Event of
Default under clause (k) of Article X; and

Page     11

 

	 	(f)	 	easements, zoning restrictions, rights-of-way and similar encumbrances on real
property imposed by law or arising in the ordinary course of business that do not
secure any monetary obligations and do not materially detract from the value of the
affected property or interfere with the ordinary conduct of business of the Borrower,
ALOSKI or any of their respective Subsidiaries;

provided that the term “Permitted Encumbrances” shall not include any Lien securing
Indebtedness.

     “Permitted Investments” means:

	 	(a)	 	direct obligations of, or obligations the principal of and interest on which
are unconditionally guaranteed by, the United States of America (or by any agency
thereof to the extent such obligations are backed by the full faith and credit of the
United States of America), in each case maturing within one year from the date of
acquisition thereof;
	 
	 	(b)	 	investments in certificates of deposit, banker’s acceptances and time deposits
maturing within 180 days from the date of acquisition thereof issued or guaranteed by
or placed with, and money market and other deposit accounts issued or offered by, any
domestic office of any commercial bank organized under the laws of the United States of
America or any State thereof which has a tier 1 capital ratio of not less than 6%, and,
with respect to such certificates of deposit, banker’s acceptances and time deposits
issued by any particular commercial bank, in an amount not exceeding 10% of such
commercial bank’s unimpaired capital;
	 
	 	(c)	 	fully collateralized repurchase agreements with a term of not more than 30 days
for securities described in clause (a) above and entered into with a financial
institution satisfying the criteria described in clause (b) above;
	 
	 	(d)	 	Acquisition of convenience stores consistent with existing operations; and
	 
	 	(e)	 	Investments other than those listed in (a) through (d) above in the aggregate
amount of $2,000,000 during the term of this Agreement.

     “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

     “Plan” means any employee pension benefit plan subject to the provisions of Title IV
of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Borrower
or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be
deemed to be) an “employer” as defined in Section 3(5) of ERISA.

     “Prime Rate” means the rate of interest per annum announced from time to time by
Wachovia Bank, National Association, as its prime rate in effect at its principal office in

Page     12

 

Charlotte, North Carolina; each change in the Prime Rate shall be effective from and including
the date such change is announced as being effective.

     “Register” has the meaning set forth in Section 12.04.

     “Related Parties” means, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents and advisors of such Person
and such Person’s Affiliates.

     “Required Lenders” means, at any time, Lenders having Term Loans representing more
than 66-2/3% of the sum of the total outstanding Term Loans at such time.

     “Restricted Indebtedness” means Indebtedness of the Borrower, ALOSKI or any of their
respective Subsidiaries, the payment, prepayment, redemption, repurchase or defeasance of which is
restricted under Section 8.06.

     “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests of the Borrower, ALOSKI or any
of their respective Subsidiaries, or any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any Equity Interests of the Borrower, ALOSKI or any of
their respective Subsidiaries or any option, warrant or other right to acquire any Equity Interests
of the Borrower, ALOSKI or any of their respective Subsidiaries.

     “S&P” means Standard & Poor’s.

     “Security Agreement” means the Security Agreement(s), whether one ore more, of the
Borrower, ALOSKI and any of their respective Subsidiaries in favor of the Administrative Agent for
the benefit of the Administrative Agent, and the Lenders, in substantially the form of Exhibit “C”
hereto, as the same may be amended, supplemented or modified from time to time.

     “Skinny’s Acquisition” means the merger of Skinny’s, Inc., a Texas corporation, with
and into ALOSKI pursuant to the Skinny’s Merger Agreement.

     “Skinny’s Acquisition Documents” has the meaning specified in Section 6.01.

     “Skinny’s Merger Agreement” that certain Agreement and Plan of Merger dated March 2,
2007 by and among Alon Interests, Alon USA, ALOSKI, Skinny’s Inc. and the Davis Shareholders (as
defined therein).

     “Solvent” means, as to any Person, that (a) the aggregate fair market value of its
assets exceeds its liabilities, (b) it has sufficient cash flow to enable it to pay its
Indebtedness as such Indebtedness matures, and (c) it does not have unreasonably small capital to
conduct its business.

     “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)
expressed as a decimal established by the Board to which the Administrative Agent is

Page     13

 

subject for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in
Regulation D of the Board). Such reserve percentages shall include those imposed pursuant to such
Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be
subject to such reserve requirements without benefit of or credit for proration, exemptions or
offsets that may be available from time to time to any Lender under such Regulation D or any
comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

     “Subordinated Debt” means all Indebtedness of the Borrower, ALOSKI, any of their
respective Subsidiaries or any Guarantor (in case of Guarantor, to or from any of the Borrower or
any of its subsidiaries) subordinated in right of payment to the Obligations pursuant to documents
containing maturities, amortization schedules, covenants, defaults, remedies, subordination
provisions and other material terms in form and substance satisfactory to the Administrative Agent
and the Required Lenders.

     “subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of
which would be consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership, association or other entity
(a) of which securities or other ownership interests representing more than 50% of the equity or
more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as
of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by
the parent and one or more subsidiaries of the parent.

     “Subsidiary” means any subsidiary of the Borrower and any subsidiary of ALOSKI.

     “Synthetic Purchase Agreement” means any swap, derivative or other agreement or
combination of agreements pursuant to which the Borrower, ALOSKI or any of their respective
Subsidiaries is or may become obligated to make (i) any payment in connection with a purchase by
any third party from a Person other than the Borrower, ALOSKI or any of their respective
Subsidiaries of any Equity Interest in the Borrower, ALOSKI or any of their respective
Subsidiaries, any warrants, options or other rights to acquire any Equity Interests of the
Borrower, ALOSKI or any of their respective Subsidiaries, or any Restricted Indebtedness or (ii)
any payment (other than on account of a permitted purchase by it of any Equity Interests in the
Borrower, ALOSKI or any of their respective Subsidiaries, any warrants, options or other rights to
acquire any Equity Interests of the Borrower, ALOSKI or any of their respective Subsidiaries, or
any Restricted Indebtedness) the amount of which is determined by reference to the price or value
at any time of any Equity Interest in the Borrower, ALOSKI or any of their respective Subsidiaries,
any warrants, options or other rights to acquire any Equity Interests of the Borrower, ALOSKI or
any of their respective Subsidiaries, or any Restricted Indebtedness; provided that no
phantom stock or similar plan providing for payments only to current or former directors, officers
or employees of the Borrower, ALOSKI or any of their respective Subsidiaries (or their heirs or
estates) shall be deemed to be a Synthetic Purchase Agreement.

Page     14

 

     “Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.

     “Term Loan” means a Loan made pursuant to clause (a) of Section 2.01 hereof.

     “Term Loan Commitment” means, with respect to each Lender as of the Effective Date,
the commitment of such Lender to make a Term Loan hereunder on the Effective Date, expressed as an
amount representing the maximum aggregate amount of the Term Loan to be made by such Lender
hereunder. The initial amount of each Lender’s Term Loan Commitment is set forth on Schedule 1.01.
The aggregate amount of the Lenders’ Term Loan Commitments as of the Effective Date is
$95,000,000.

     “Term Loan Maturity Date” means July 1, 2017.

     “Term Note” means a promissory note of the Borrower payable to the order of a Lender,
in substantially the form of Exhibit “A” hereto, and all extensions, renewals, and modifications
thereof and all substitutions therefor.

     “Transactions” means the execution, delivery and performance by the Borrower and each
Guarantor of this Agreement and the other Loan Documents to which it is a party, the borrowing of
Loans and the use of the proceeds thereof.

     “Treasury Obligations” means any and all obligations and liabilities of the Borrower
or any of its affiliates to the Administrative Agent and the Lenders, or any of them or any of
their respective affiliates, now existing or hereafter arising, whether direct, indirect, joint,
several, or joint and several, arising under or in any way relating to or incurred in connection
with (a) any deposit accounts maintained by the Borrower or any of its affiliates with the
Administrative Agent and the Lenders, or any of them or any of their respective affiliates, (b) any
cash management services or treasury administration services provided by the Administrative Agent
and the Lenders, or any of them or any of their respective affiliates, (c) any documentation
relating thereto, or (d) any services or transactions relating thereto, including without
limitation daylight overdraft exposure.

     “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the
Adjusted LIBO Rate or the Alternate Base Rate.

     “UCC” means the Uniform Commercial Code as in effect in the State of Texas.

     “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

     SECTION 1.02 Terms Generally. The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be
deemed to be followed by the phrase “without

Page     15

 

limitation”. The word “will” shall be construed
to have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a)
any definition of or reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from time to time
amended, supplemented or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein), (b) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be construed to refer to this Agreement in its
entirety and not to any particular provision hereof, (d) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and
Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights.

     SECTION 1.03 Accounting Terms; GAAP. Except as otherwise expressly provided herein,
all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in
effect from time to time; provided that, if the Borrower notifies the Administrative Agent
that the Borrower requests an amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the application thereof on the operation of
such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders
request an amendment to any provision hereof for such purpose), regardless of whether any such
notice is given before or after such change in GAAP or in the application thereof, then such
provision shall be interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been withdrawn or such
provision amended in accordance herewith.

     SECTION 1.04 UCC Changes. All terms used herein which are defined in the UCC shall,
unless otherwise provided, have the meanings ascribed to them in the UCC both as in effect on the
date of this Agreement and as hereafter amended. The parties intend that the terms used herein
which are defined in the UCC have, at all times, the broadest and most inclusive meanings possible.
Accordingly, if the UCC shall in the future be amended or held by a court to define any term used
herein more broadly or inclusively than the UCC in effect on the date of this Agreement, then such
term as used herein shall be given such broadened meaning. If the UCC shall in the future be
amended or held by a court to define any term used herein more narrowly, or less inclusively, than
the UCC in effect on the date of this Agreement, such amendment or holding shall be disregarded in
defining terms used in this Agreement.

ARTICLE II

The Credits

     SECTION 2.01 Commitments. Subject to the terms and conditions set forth herein, each
Lender agrees to make a Term Loan to the
Borrower on the Effective Date in a principal amount not exceeding its Term Loan Commitment.
Amounts repaid in respect of the Term Loans may not be reborrowed.

Page     16

 

     SECTION 2.02 Loans and Borrowings.

	 	(a)	 	Each Loan shall be made as part of a Borrowing consisting of Loans of the same
Class and Type made by the Lenders ratably in accordance with their respective
Commitments of the applicable Class. The failure of any Lender to make any Loan
required to be made by it shall not relieve any other Lender of its obligations
hereunder; provided that the Commitments of the Lenders are several and no
Lender shall be responsible for any other Lender’s failure to make Loans as required.
	 
	 	(b)	 	Subject to Sections 3.02, 3.03 and 3.04, each Borrowing shall be comprised
entirely of ABR Loans or Eurodollar Loans as the Borrower may request in accordance
herewith. Each Lender at its option may make any Eurodollar Loan by causing any
domestic or foreign branch or Affiliate of such Lender to make such Loan;
provided that any exercise of such option shall not affect the obligation of
the Borrower to repay such Loan in accordance with the terms of this Agreement.
	 
	 	(c)	 	At the commencement of each Interest Period for any Eurodollar Borrowing, such
Borrowing shall be in an aggregate amount that is an integral multiple of $100,000 and
not less than $500,000. Borrowings of more than one Type or Class may be outstanding
at the same time; provided that there shall not at any time be more than a
total of five Eurodollar Borrowings outstanding.
	 
	 	(d)	 	Notwithstanding any other provision of this Agreement, the Borrower shall not
be entitled to request, or to elect to convert or continue, any Borrowing if the
Interest Period requested with respect thereto would end after the Term Loan Maturity
Date.

     SECTION 2.03 Requests for Borrowings. To request a Term Loan Borrowing, the Borrower
shall notify the Administrative Agent of such request in writing not later than 11:00 a.m., Dallas,
Texas time, three Business Days before the date of the proposed Borrowing. Each such Borrowing
Request shall be irrevocable and shall be made by hand delivery or telecopy to the Administrative
Agent of a written Borrowing Request by means of a Borrowing Request Form signed by the Borrower.
Each such Borrowing Request shall specify the following information in compliance with Section
2.02:

	 	(i)	 	the aggregate amount of the requested Borrowing;
	 
	 	(ii)	 	the date of such Borrowing, which shall be a Business Day;
	 
	 	(iii)	 	whether such Borrowing is to be an ABR Borrowing or a
Eurodollar Borrowing;
	 
	 	(iv)	 	in the case of a Eurodollar Borrowing, the initial Interest
Period to be applicable thereto, which shall be a period contemplated by the
definition of the term “Interest Period”; and

Page     17

 

	 	(v)	 	the location and number of the Borrower’s account to which
funds are to be disbursed, which shall comply with the requirements of Section
2.05.

If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an
ABR Borrowing. If no Interest Period is specified with respect to any requested Eurodollar
Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s
duration. Promptly following receipt of a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each Lender of the details thereof and of the amount of such
Lender’s Loan to be made as part of the requested Borrowing.

     SECTION 2.04 Reserved.

     SECTION 2.05  Funding of Borrowings.

	 	(a)	 	Each Lender shall make each Loan to be made by it hereunder on the proposed
date thereof by wire transfer of immediately available funds by 2:00 p.m., Dallas,
Texas time, to the account of the Administrative Agent most recently designated by it
for such purpose by notice to the Lenders. The Administrative Agent will make such
Loans available to the Borrower by promptly crediting the amounts so received, in like
funds, to an account of the Borrower maintained with the Administrative Agent in
Dallas, Texas and designated by the Borrower in the applicable Borrowing Request.
	 
	 	(b)	 	Unless the Administrative Agent shall have received notice from a Lender prior
to the proposed date of any Borrowing that such Lender will not make available to the
Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent
may assume that such Lender has made such share available on such date in accordance
with paragraph (a) of this Section and may, in reliance upon such assumption, make
available to the Borrower a corresponding amount. In such event, if a Lender has not
in fact made its share of the applicable Borrowing available to the Administrative
Agent, then the applicable Lender and the Borrower severally agree to pay to the
Administrative Agent forthwith on demand such corresponding amount with interest
thereon, for each day from and including the date such amount is made available to the
Borrower to but excluding the date of payment to the Administrative Agent, at (i) in
the case of such Lender, the greater of the Federal Funds Effective Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules on
interbank compensation or (ii) in the case of the Borrower, the interest rate
applicable to ABR Loans. If such Lender pays such amount to the
Administrative Agent, then such amount shall constitute such Lender’s Loan included
in such Borrowing.

     SECTION 2.06 Interest Elections.

	 	(a)	 	Each Term Loan Borrowing initially shall be of the Type specified in the
applicable Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an
initial Interest Period as specified in such Borrowing Request.

Page     18

 

	 	 	 	Thereafter, the
Borrower may elect to convert such Borrowing to a different Type or to continue such
Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest Periods
therefor, all as provided in this Section. The Borrower may elect different options
with respect to different portions of the affected Borrowing, in which case each such
portion shall be allocated ratably among the Lenders holding the Loans comprising such
Borrowing, and the Loans comprising each such portion shall be considered a separate
Borrowing.
	 
	 	(b)	 	To make an election pursuant to this Section, the Borrower shall notify the
Administrative Agent of such election by telephone by the time that a Borrowing Request
would be required under Section 2.03 if the Borrower were requesting a Borrowing of the
Type resulting from such election to be made on the effective date of such election.
Each such telephonic Interest Election Request shall be irrevocable and shall be
confirmed promptly by hand delivery or telecopy to the Administrative Agent of a
written Interest Election Request by means of a Borrowing Request Form signed by the
Borrower.
	 
	 	(c)	 	Each telephonic and written Interest Election Request shall specify the
following information in compliance with Section 2.02 and 2.03:

	 	(i)	 	the Borrowing to which such Interest Election Request applies
and, if different options are being elected with respect to different portions
thereof, the portions thereof to be allocated to each resulting Borrowing (in
which case the information to be specified pursuant to clauses (iii) and (iv)
below shall be specified for each resulting Borrowing);
	 
	 	(ii)	 	the effective date of the election made pursuant to such
Interest Election Request, which shall be a Business Day;
	 
	 	(iii)	 	whether the resulting Borrowing is to be an ABR Borrowing or a
Eurodollar Borrowing; and
	 
	 	(iv)	 	if the resulting Borrowing is a Eurodollar Borrowing, the
Interest Period to be applicable thereto after giving effect to such election,
which shall be a period contemplated by the definition of the term “Interest
Period”.

	 	 	 	If any such Interest Election Request requests a Eurodollar Borrowing but does not
specify an Interest Period, then the Borrower shall be deemed to have selected an
Interest Period of one month’s duration.

	 	(d)	 	Promptly following receipt of an Interest Election Request, the Administrative
Agent shall advise each Lender of the details thereof and of such Lender’s portion of
each resulting Borrowing.
	 
	 	(e)	 	If the Borrower fails to deliver a timely Interest Election Request with
respect to a Eurodollar Borrowing prior to the end of the Interest Period applicable
thereto, then, unless such Borrowing is repaid as provided herein, at the end of such

Page     19

 

	 	 	 	Interest Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding
any contrary provision hereof, if an Event of Default has occurred and is continuing
and the Administrative Agent, at the request of the Required Lenders, so notifies the
Borrower, then, so long as an Event of Default is continuing (i) no outstanding
Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless
repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of
the Interest Period applicable thereto.
	 
	 	(f)	 	A Borrowing of any Class may not be converted to or continued as a Eurodollar
Borrowing if after giving effect thereto (i) the Interest Period therefor would
commence before and end after a date on which any principal of the Loans of such Class
is scheduled to be repaid and (ii) the sum of the aggregate principal amount of the
outstanding Eurodollar Borrowings of such Class with Interest Periods ending on or
prior to such scheduled repayment date plus the aggregate principal amount of
outstanding ABR Borrowings of such Class would be less than the aggregate principal
amount of the Loans of such Class required to be repaid on such scheduled repayment
date.

     SECTION 2.07 Termination and Reduction of Commitments.

	 	(a)	 	Unless previously terminated, the Term Loan Commitments shall terminate at 5:00
p.m., Dallas, Texas time, on the date which is thirty (30) days after the Effective
Date.
	 
	 	(b)	 	The Borrower may at any time terminate, or from time to time reduce, the
Commitments of any Class; provided that each reduction of the Commitments of
any Class shall be in an amount that is an integral multiple of $500,000 and not less
than $1,000,000, or if less, the amount of such Commitment.
	 
	 	(c)	 	The Borrower shall notify the Administrative Agent of any election to terminate
or reduce the Commitments under paragraph (b) of this Section at least two Business
Days prior to the effective date of such termination or reduction, specifying such
election and the effective date thereof. Promptly following receipt of any notice, the
Administrative Agent shall advise the Lenders of the contents thereof. Each notice
delivered by the Borrower pursuant to this Section shall be irrevocable. Any
termination or reduction of the Commitments of any Class shall be permanent. Each
reduction of the Commitments of any
Class shall be made ratably among the Lenders in accordance with their respective
Commitments of such Class.

     SECTION 2.08 Repayment of Loans; Evidence of Debt.

	 	(a)	 	The Borrower hereby unconditionally promises to pay to the Administrative Agent
for the account of each Lender the then unpaid principal amount of each Term Loan as
provided in paragraph (b) of this Section.

Page     20

 

	 	(b)	 	The Borrower shall repay Term Loan Borrowings in monthly installments of
principal in the amount of $527,777.78 each (which amount is based on a fifteen (15)
year amortization term), the first such installment to be due and payable on August 1,
2007, with like successive installments of principal to be due and payable on the
1st day of each month thereafter, and a final installment of all remaining
outstanding principal to be due and payable on the applicable Term Loan Maturity Date.
To the extent not previously paid, all Term Loans shall be due and payable on the
applicable Term Loan Maturity Date. Any prepayment of a Term Loan Borrowing shall be
applied to scheduled repayments of the Term Loan Borrowings to be made pursuant to this
paragraph (b) in inverse order of maturity; provided, however, that in the event
Borrower makes a single prepayment of $2,500,000 or more, Administrative Agent shall
adjust the amount of successive installments in order to amortize the remaining
outstanding balance of the Term Loan Borrowing over the existing amortization term
applicable to such Term Loan Borrowing. Prior to any repayment of any Term Loan
Borrowings, the Borrower shall select the Borrowing or Borrowings to be repaid and
shall notify the Administrative Agent by telephone (confirmed by telecopy) of such
selection not later than 11:00 a.m., Dallas, Texas time, two Business Days before the
scheduled date of such repayment. Each repayment of a Borrowing shall be applied
ratably to the Loans included in the repaid Borrowing. Repayments of Term Loan
Borrowings shall be accompanied by accrued unpaid interest on the Term Loan Borrowings.
	 
	 	(c)	 	Each Lender shall maintain in accordance with its usual practice an account or
accounts evidencing the indebtedness of the Borrower to such Lender resulting from each
Loan made by such Lender, including the amounts of principal and interest payable and
paid to such Lender from time to time hereunder.
	 
	 	(d)	 	The Administrative Agent shall maintain accounts in which it shall record (i)
the amount of each Loan made hereunder, the Class and Type thereof and the Interest
Period applicable thereto, (ii) the amount of any principal or interest due and payable
or to become due and payable from the Borrower to each Lender hereunder and (iii) the
amount of any sum received by the Administrative Agent hereunder for the account of the
Lenders and each Lender’s share thereof.
	 
	 	(e)	 	The entries made in the accounts maintained pursuant to paragraph (c) or (d) of
this Section shall be prima facie evidence of the existence and amounts
of the
obligations recorded therein; provided that the failure of any Lender or the
Administrative Agent to maintain such accounts or any error therein shall not in any
manner affect the obligation of the Borrower to repay the Loans in accordance with
the terms of this Agreement.
	 
	 	(f)	 	Reserved.
	 
	 	(g)	 	The obligation of the Borrower to repay each Lender for Term Loans made by such
Lender and interest thereon shall be evidenced by a Term Note executed by the Borrower,
payable to the order of such Lender, in the principal amount of such 

Page     21

 

	 	 	 	Lender’s Term
Commitment as in effect on the date hereof, and initially dated the date hereof.

     SECTION 2.09 Prepayment of Loans.

	 	(a)	 	The Borrower shall have the right at any time and from time to time to prepay
any Borrowing in whole or in part, subject to the requirements of this Section.
	 
	 	(b)	 	Prior to any optional or mandatory prepayment of Borrowings hereunder, the
Borrower shall select the Borrowing or Borrowings to be prepaid and shall specify such
selection in the notice of such prepayment pursuant to paragraph (c) of this Section.
	 
	 	(c)	 	The Borrower shall notify the Administrative Agent by telephone (confirmed by
telecopy) of any prepayment hereunder (i) in the case of prepayment of a Eurodollar
Borrowing that will be made before the last day of the applicable Interest Period and
shall pay all amounts required to be paid by Section 3.05 concurrently with such
prepayment. Such notice shall be given not later than 11:00 a.m., Dallas, Texas time,
two Business Days before the date of prepayment. Each such notice shall be irrevocable
and shall specify the prepayment date and the principal amount of each Borrowing or
portion thereof to be prepaid; provided that, if a notice of prepayment is
given in connection with a conditional notice of termination of the Commitments as
contemplated by Section 2.07, then such notice of prepayment may be revoked if such
notice of termination is revoked in accordance with Section 2.07. Promptly following
receipt of any such notice, the Administrative Agent shall advise the Lenders of the
contents thereof. Each partial prepayment of any Borrowing shall be in an amount that
would be permitted in the case of an advance of a Borrowing of the same Type as
provided in Section 2.02. Each prepayment of a Borrowing shall be applied ratably to
the Loans included in the prepaid Borrowing. Prepayments shall be accompanied by
accrued interest to the extent required by Section 2.11.

     SECTION 2.10 Fees.

	 	(a)	 	The Borrower agrees to pay to the Administrative Agent, for its own account,
fees payable in the amounts and at the times separately agreed upon between the
Borrower and the Administrative Agent.
	 
	 	(b)	 	All fees payable hereunder shall be paid on the dates due, in immediately
available funds, to the Administrative Agent for distribution. Fees paid shall not be
refundable under any circumstances.

Page     22

 

     SECTION 2.11 Interest.

	 	(a)	 	The Loans comprising each ABR Borrowing shall bear interest at the Alternate
Base Rate plus the Applicable Margin.
	 
	 	(b)	 	The Loans comprising each Eurodollar Borrowing shall bear interest at the
Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the
Applicable Margin.
	 
	 	(c)	 	Notwithstanding the foregoing, if an Event of Default shall occur, the Loans
and other amounts payable by the Borrower hereunder shall bear interest, after as well
as before judgment, at a rate per annum equal to (i) in the case of principal of any
Loan, 3% plus the rate otherwise applicable to such Loan as provided in the preceding
paragraphs of this Section or (ii) in the case of any other amount, including interest
and fees, 3% plus the rate applicable to ABR Loans as provided in paragraph (a) of this
Section.
	 
	 	(d)	 	Accrued interest on each Loan shall be payable in arrears (1) on each Interest
Payment Date for such Loan, and (2) except as otherwise provided in clause (1) of this
paragraph, upon the Term Loan Maturity Date; provided that (i) interest
accrued pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in
the event of any repayment or prepayment of any Loan, accrued interest on the principal
amount repaid or prepaid shall be payable on the date of such repayment or prepayment
and (iii) in the event of any conversion of any Eurodollar Loan prior to the end of the
current Interest Period therefor, accrued interest on such Loan shall be payable on the
effective date of such conversion.
	 
	 	(e)	 	All interest hereunder shall be computed on the basis of a year of 360 days,
except that interest computed by reference to the Alternate Base Rate at times when the
Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year
of 365 days (or 366 days in a leap year), and in each case shall be payable for the
actual number of days elapsed (including the first day but excluding the last day).
The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined
by the Administrative Agent, and such determination shall be conclusive absent manifest
error.

     SECTION 2.12 Taxes.

	 	(a)	 	Any and all payments by or on account of any obligation of the Borrower
hereunder shall be made free and clear of and without deduction for any Indemnified
Taxes or Other Taxes; provided that if the Borrower shall be required to deduct
any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall
be increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section) the Administrative
Agent or Lender (as the case may be) receives an amount equal to the sum it would have
received had no such deductions been made, (ii) the Borrower shall make such deductions
and (iii) the Borrower shall

Page     23

 

	 	 	 	pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.
	 
	 	(b)	 	In addition, the Borrower shall pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.
	 
	 	(c)	 	The Borrower shall indemnify the Administrative Agent and each Lender within 10
days after written demand therefor, for the full amount of any Indemnified Taxes or
Other Taxes paid by the Administrative Agent or such Lender, as the case may be, on or
with respect to any payment by or on account of any obligation of the Borrower
hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) and any penalties, interest and
expenses arising therefrom or with respect thereto, whether or not such Indemnified
Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or liability
delivered to the Borrower by a Lender, or by the Administrative Agent on its own behalf
or on behalf of a Lender, shall be conclusive absent manifest error.
	 
	 	(d)	 	As soon as practicable after any payment of Indemnified Taxes or Other Taxes by
the Borrower to a Governmental Authority, the Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by such
Governmental Authority evidencing such payment, a copy of the return reporting such
payment or other evidence of such payment satisfactory to the Administrative Agent.
	 
	 	(e)	 	Any Foreign Lender that is entitled to an exemption from or reduction of
withholding tax under the law of the jurisdiction in which the Borrower is located, or
any treaty to which such jurisdiction is a party, with respect to payments under this
Agreement shall deliver to the Borrower (with a copy to the Administrative Agent), at
the time or times prescribed by applicable law, such properly completed and executed
documentation prescribed by applicable law or reasonably requested by the Borrower as
will permit such payments to be made without withholding or at a reduced rate.

     SECTION 2.13 Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

	 	(a)	 	The Borrower shall make each payment required to be made by it hereunder
(whether of principal, interest, fees, or of amounts payable under Section 2.12, 3.01
or 3.05, or otherwise) prior to 12:00 noon, Dallas, Texas time, on the date when due,
in immediately available funds, without set-off or counterclaim. Any amounts received
after such time on any date may, in the discretion of the Administrative Agent, be
deemed to have been received on the next succeeding Business Day for purposes of
calculating interest thereon. All such payments shall be made to the Administrative
Agent at its offices at 712 Main Street, Houston, Texas 77002, except that payments
pursuant to Sections 2.12, 3.01, 3.05 and 12.03 shall be made directly to the Persons
entitled thereto. The 

Page     24

 

	 	 	 	Administrative Agent shall distribute any such payments received
by it for the account of any other Person to the appropriate recipient promptly
following receipt thereof. If any payment hereunder shall be due on a day that is not
a Business Day, the date for payment shall be extended to the next succeeding Business
Day, and, in the case of any payment accruing interest, interest thereon shall be
payable for the period of such extension. All payments hereunder shall be made in
dollars.
	 
	 	(b)	 	If at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, interest and fees then due
hereunder, such funds shall be applied (i) first, towards payment of interest and fees
then due hereunder, ratably among the parties entitled thereto in accordance with the
amounts of interest and fees then due to such parties, and (ii) second, towards payment
of principal then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of principal then due to such parties.
	 
	 	(c)	 	If any Lender shall, by exercising any right of set-off or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of its
Loans resulting in such Lender receiving payment of a greater proportion of the
aggregate amount of its Loans and accrued interest thereon than the proportion received
by any other Lender, then the Lender receiving such greater proportion shall purchase
(for cash at face value) participations in the Loans to the extent necessary so that
the benefit of all such payments shall be shared by the Lenders ratably in accordance
with the aggregate amount of principal of and accrued interest on their respective
Loans; provided that (i) if any such participations are purchased and all or
any portion of the payment giving rise thereto is recovered, such participations shall
be rescinded and the purchase price restored to the extent of such recovery, without
interest, and (ii) the provisions of this paragraph shall not be construed to apply to
any payment made by the Borrower pursuant to and in accordance with the express terms
of this Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans to any assignee or
participant, other than to the Borrower, ALOSKI or any of their respective Subsidiaries
or Affiliate thereof (as to which the provisions of this paragraph shall apply). The
Borrower consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any
Lender acquiring a participation pursuant to the foregoing arrangements may exercise
against the Borrower rights of set-off and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of the Borrower in
the amount of such participation.
	 
	 	(d)	 	Unless the Administrative Agent shall have received notice from the Borrower
prior to the date on which any payment is due to the Administrative Agent for the
account of the Lenders hereunder that the Borrower will not make such payment, the
Administrative Agent may assume that the Borrower has made such payment on such date in
accordance herewith and may, in reliance upon such assumption,

Page     25

 

	 	 	 	distribute to the
Lenders, as the case may be, the amount due. In such event, if the Borrower has not in
fact made such payment, then each of the Lenders severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such Lender with
interest thereon, for each day from and including the date such amount is distributed
to it to but excluding the date of payment to the Administrative Agent, at the greater
of the Federal Funds Effective Rate and a rate determined by the Administrative Agent
in accordance with banking industry rules on interbank compensation.
	 
	 	(e)	 	If any Lender shall fail to make any payment required to be made by it pursuant
to Section 2.04(d) or (e), 2.05(b), or 2.13(d), then the Administrative Agent may, in
its discretion (notwithstanding any contrary provision hereof), apply any amounts
thereafter received by the Administrative Agent for the account of such Lender to
satisfy such Lender’s obligations under such Sections until all such unsatisfied
obligations are fully paid.

     SECTION 2.14 Mitigation Obligations; Replacement of Lenders.

	 	(a)	 	If any Lender requests compensation under Section 3.01, or if the Borrower is
required to pay any additional amount to any Lender or any Governmental Authority for
the account of any Lender pursuant to Section 2.12, then such Lender shall use
reasonable efforts to designate a different lending office for funding or booking its
Loans hereunder or to assign its rights and obligations hereunder to another of its
offices, branches or affiliates, if, in the judgment of such Lender, such designation
or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.12 or
3.01, as the case may be, in the future and (ii) would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.
The Borrower hereby agrees to pay all costs and expenses incurred by any Lender in
connection with any such designation or assignment.
	 
	 	(b)	 	If any Lender requests compensation under Section 3.01, or if the Borrower is
required to pay any additional amount to any Lender or any Governmental Authority for
the account of any Lender pursuant to Section 2.12, or if any Lender defaults in its
obligation to fund Loans hereunder, then the Borrower may, at its sole expense and
effort, upon notice to such Lender and the Administrative Agent,
require such Lender to assign and delegate, without recourse (in accordance with and
subject to the restrictions contained in Section 12.04), all its interests, rights
and obligations under this Agreement to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (i) the Borrower shall have received the prior
written consent of the Administrative Agent, (ii) such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder, from
the assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Borrower (in the case of all other amounts) and (iii) in the case of
any 

Page     26

 

	 	 	 	such assignment resulting from a claim for compensation under Section 3.01 or
payments required to be made pursuant to Section 2.12, such assignment will result
in a reduction in such compensation or payments. A Lender shall not be required to
make any such assignment and delegation if, prior thereto, as a result of a waiver
by such Lender or otherwise, the circumstances entitling the Borrower to require
such assignment and delegation cease to apply.

ARTICLE III

Yield Protection and Illegality

     SECTION 3.01 Increased Costs.

	 	(a)	 	If any Change in Law shall:

	 	(i)	 	impose, modify or deem applicable any reserve, special deposit
or similar requirement against assets of, deposits with or for the account of,
or credit extended by any Lender (except any such reserve requirement reflected
in the Adjusted LIBO Rate); or
	 
	 	(ii)	 	impose on any Lender or the London interbank market any other
condition affecting this Agreement or Eurodollar Loans made by such Lender or
participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of
making or maintaining any Eurodollar Loan (or of maintaining its obligation to make any such
Loan) or to reduce the amount of any sum received or receivable by such Lender hereunder
(whether of principal, interest or otherwise), then the Borrower will pay to such Lender,
such additional amount or amounts as will compensate such Lender for such additional costs
incurred or reduction suffered.

	 	(b)	 	If any Lender determines that any Change in Law regarding capital requirements
has or would have the effect of reducing the rate of return on such Lender’s capital or
on the capital of such Lender’s holding company, if any, as a consequence of this
Agreement or the Loans made by such Lender, to a level below that which such Lender or
such Lender’s holding company could have achieved but for such
Change in Law (taking into consideration such Lender’s policies and the policies of
such Lender’s holding company with respect to capital adequacy), then from time to
time the Borrower will pay to such Lender such additional amount or amounts as will
compensate such Lender or such Lender’s holding company for any such reduction
suffered.
	 
	 	(c)	 	A certificate of a Lender setting forth the amount or amounts necessary to
compensate such Lender or its holding company, as the case may be, as specified in
paragraph (a) or (b) of this Section shall be delivered to the Borrower and shall be in
reasonable detail and be conclusive absent manifest error. The Borrower

Page     27

 

	 	 	 	shall pay such
Lender the amount shown as due on any such certificate within 10 days after receipt
thereof.
	 
	 	(d)	 	Failure or delay on the part of any Lender to demand compensation pursuant to
this Section shall not constitute a waiver of such Lender’s right to demand such
compensation; provided that the Borrower shall not be required to compensate a
Lender pursuant to this Section for any increased costs or reductions incurred more
than 270 days prior to the date that such Lender notifies the Borrower of the Change in
Law giving rise to such increased costs or reductions and of such Lender’s intention to
claim compensation therefor; provided further that, if the Change in
Law giving rise to such increased costs or reductions is retroactive, then the 270-day
period referred to above shall be extended to include the period of retroactive effect
thereof.

     SECTION 3.02 Alternate Rate of Interest. If prior to the commencement of any Interest
Period for a Eurodollar Borrowing:

	 	(a)	 	the Administrative Agent determines (which determination shall be conclusive
absent manifest error) that adequate and reasonable means do not exist for ascertaining
the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period; or
	 
	 	(b)	 	the Administrative Agent is advised by the Required Lenders that the Adjusted
LIBO Rate or the LIBO Rate, as applicable, for such Interest Period will not adequately
and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their
Loans (or its Loan) included in such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by
telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent
notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer
exist, (i) any Interest Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective and (ii) if any
Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR
Borrowing.

     SECTION 3.03 Illegality. Notwithstanding any other provision of this Agreement, in
the event that it becomes unlawful for any Lender or its applicable lending office to (a) honor its
obligation to make Eurodollar Borrowings hereunder or (b) maintain Eurodollar Borrowings hereunder,
then such Lender shall promptly notify the Borrower (with a copy to the Administrative Agent)
thereof and such Lender’s obligation to make or maintain Eurodollar Borrowings and to convert other
Types of Borrowings into Eurodollar Borrowings hereunder shall be suspended until such time as such
Lender may again make and maintain Eurodollar Borrowings, in which case (i) all Borrowings which
would be otherwise made by such Lender as Eurodollar Borrowings shall be made instead as ABR
Borrowings and all Borrowings which would otherwise be converted into (or continued as) Eurodollar
Borrowings shall be converted instead into (or shall remain as) ABR Borrowings and (ii) if such
Lender so requests by notice to

Page     28

 

the Borrower (with a copy to the Administrative Agent), all
Eurodollar Borrowings of such Lender shall be automatically converted into ABR Borrowings on the
date specified by such Lender in such notice.

     SECTION 3.04 Treatment of Affected Borrowings. If the Eurodollar Borrowings of any
Lender are to be converted pursuant to Section 3.03 hereof, such Lender’s Eurodollar Borrowings
shall be automatically converted into ABR Borrowings on the last day(s) of the then current
Interest Period(s) for such Eurodollar Borrowings (or on such earlier date as such Lender may
specify to the Borrower with a copy to the Administrative Agent) and, unless and until such Lender
gives notice as provided below that the circumstances specified in Section 3.03 hereof which gave
rise to such conversion no longer exist:

	 	(a)	 	To the extent that such Lender’s Eurodollar Borrowings have been so converted,
all payments and prepayments of principal which would otherwise be applied to such
Lender’s Eurodollar Borrowings shall be applied instead to its ABR Borrowings;
	 
	 	(b)	 	All Borrowings which would otherwise be made or continued by such Lender as
Eurodollar Borrowings shall be made as or converted into ABR Borrowings and all
Borrowings of such Lender which would otherwise be converted into Eurodollar Borrowings
shall be converted instead into (or shall remain as) ABR Borrowings; and

If such Lender gives notice to the Borrower (with a copy to the Administrative Agent) that the
circumstances specified in Section 3.03 hereof which gave rise to the conversion of such Lender’s
Eurodollar Borrowings pursuant to this Section 3.04 no longer exist (which such Lender agrees to do
promptly upon such circumstances ceasing to exist) at a time when Eurodollar Borrowings are
outstanding, such Lender’s ABR Borrowings shall be automatically converted, on the first day(s) of
the next succeeding Interest Period(s) for such outstanding Eurodollar Borrowings to the extent
necessary so that, after giving effect thereto, all Borrowings held by the Lenders holding
Eurodollar Borrowings and by such Lender are held pro rata (as to principal amounts, Types, and
Interest Periods) in accordance with their respective Commitments.

     SECTION 3.05 Break Funding Payments. In the event of (a) the payment of any principal
of any Eurodollar Loan other than
on the last day of an Interest Period applicable thereto (including as a result of an Event of
Default), (b) the conversion of any Eurodollar Loan other than on the last day of the Interest
Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Loan on the
date specified in any notice delivered pursuant hereto (regardless of whether such notice may be
revoked under Section 2.09(c) and is revoked in accordance therewith), or (d) the assignment of any
Eurodollar Loan other than on the last day of the Interest Period applicable thereto as a result of
a request by the Borrower pursuant to Section 2.14, then, in any such event, the Borrower shall
compensate each Lender for the loss, cost and expense attributable to such event. In the case of a
Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to include an amount
determined by such Lender to be the excess, if any, of (i) the amount of interest which would have
accrued on the principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate
that would have been applicable to such Loan, for the period from the date of such event to the
last day of the

Page     29

 

then current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period for such Loan), over
(ii) the amount of interest which would accrue on such principal amount for such period at the
interest rate which such Lender would bid were it to bid, at the commencement of such period, for
dollar deposits of a comparable amount and period from other banks in the eurodollar market. A
certificate of any Lender setting forth any amount or amounts that such Lender is entitled to
receive pursuant to this Section shall be delivered to the Borrower and shall be in reasonable
detail and be conclusive absent manifest error. The Borrower shall pay such Lender the amount
shown as due on any such certificate within 10 days after receipt thereof.

ARTICLE IV

Security

     SECTION 4.01 Collateral. To secure full and complete payment and performance of the
Obligations, the Borrower, ALOSKI and their respective Subsidiaries shall execute and deliver or
cause to be executed and delivered the documents described below covering the property and
collateral described in this Section 4.01 (which, together with any other property and collateral
which may now or hereafter secure the Obligations or any part thereof, is sometimes herein called
the “Collateral”):

	 	(a)	 	The Borrower will, and will cause each of the Guarantors (other than Alon USA
and Alon Interests) to, grant to the Administrative Agent, for the benefit of the
Administrative Agent and the Lenders, a first priority security interest, subject only
to those Liens permitted under Section 8.02 of this Agreement, in all of its accounts,
accounts receivable, contract rights, equipment, machinery, furniture, fixtures,
inventory, chattel paper, documents, instruments, general intangibles, investment
property, deposit accounts, letter-of-credit rights, commercial tort claims, supporting
obligations, intellectual property, and Equity Interests in their respective
Subsidiaries, whether now owned or hereafter acquired, and all products and cash and
noncash proceeds thereof, pursuant to the Security Agreement; provided that not more
than 65% of the Equity Interests of any Foreign Subsidiary shall be required to be
subject to such security interest.
	 
	 	(b)	 	The Borrower will, and will cause ALOSKI and each of their respective
Subsidiaries to, execute and deliver and cause to be executed and delivered such
further documents and instruments as the Administrative Agent, in its sole discretion,
deems necessary or desirable to evidence and perfect its Liens in the Collateral.

Page     30

 

ARTICLE V

Representations and Warranties

     The Borrower represents and warrants to the Administrative Agent and the Lenders that on and
as of the date of this Agreement, the Effective Date, the date of each Borrowing, and after giving
effect to the Transactions:

     SECTION 5.01 Organization; Powers. Each of the Borrower, ALOSKI and their respective
Subsidiaries is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, has all requisite power and authority to carry on its business as
now conducted and, except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect, is qualified to do business in, and
is in good standing in, every jurisdiction where because of the nature of its activities or
properties such qualification is required.

     SECTION 5.02 Authorization; Enforceability. The Transactions are within the powers of
the Borrower, ALOSKI and their respective Subsidiaries, and have been duly authorized by all
necessary action. This Agreement and the other Loan Documents to which Borrower or any Guarantor
is a party have been duly executed and delivered by such Person and constitutes a legal, valid and
binding obligation of such Person, enforceable in accordance with their respective terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’
rights generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law.

     SECTION 5.03 Governmental Approvals; No Conflicts. The Transactions (a) do not
require any consent or approval of, registration or filing with, or any other action by, any
Governmental Authority, except such as have been obtained or made and are in full force and effect
and except filings necessary to perfect Liens created under the Loan Documents, (b) will not
violate any applicable law or regulation or the charter, by-laws or other organizational documents
of the Borrower, ALOSKI or any of their respective Subsidiaries or any order of any Governmental
Authority, (c) will not violate or result in a default under any indenture, agreement or other
instrument binding upon the Borrower, ALOSKI or any of their respective Subsidiaries, or their
respective assets, or give rise to a right thereunder to require any payment to be made by the
Borrower, ALOSKI or any of their respective Subsidiaries, except where such violation or default
could not reasonably be expected to result in a Material Adverse Effect, and (d) will not result in
the
creation or imposition of any Lien on any asset of the Borrower, ALOSKI or any of their
respective Subsidiaries, other than Liens created or imposed by the Loan Documents.

     SECTION 5.04 Financial Condition; No Material Adverse Change.

	 	(a)	 	The Borrower has heretofore furnished to the Administrative Agent, its,
Skinny’s, Inc. and Alon USA’s internally prepared consolidated balance sheets and
statements of income, stockholders’ equity and cash flows as of and for the fiscal year
ended December 31, 2006. Such financial statements present fairly, in all material
respects, the financial position and results of operations and cash flows of the Alon
USA, Borrower, Borrower’s consolidated Subsidiaries and ALOSKI’s

Page     31

 

	 	 	 	consolidated
Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to
the absence of footnotes; provided that with respect to Skinny’s, Inc., such
financial statements were provided without representation other than the Borrower is
not aware of any modifications that should be made to the balance sheet, income
statement and cash flow statement in order for such financial statements of Skinny’s,
Inc. to be in conformity with GAAP; and further provided that the Borrower has
heretofore furnished to the Administrative Agent the internally prepared consolidated
balance sheets and statements of income, stockholders’ equity and cash flows for the
fiscal year ended December 31, 2005 for Skinny’s, Inc., and to the best of Borrower’s
knowledge, the 2005 financial statements of Skinny’s, Inc. present fairly, in all
material respects, the financial position and results of operations and cash flows of
Skinny’s, Inc.
	 
	 	(b)	 	Since December 31, 2006, there has been no material adverse change in the
business, assets, operations or condition, financial or otherwise, of Alon USA, ALOSKI,
Skinny’s, Inc., Borrower and their respective Subsidiaries, taken as a whole.
	 
	 	(c)	 	Except as disclosed in the financial statements referred to above or the notes
thereto and except for Disclosed Matters, after giving effect to the Transactions, none
of the Borrower, ALOSKI nor any their respective Subsidiaries has, as of the Effective
Date, any material contingent liabilities, unusual long term commitments or unrealized
losses.

     SECTION 5.05 Properties.

	 	(a)	 	Each of the Borrower, ALOSKI and their respective Subsidiaries has good title
to, or valid leasehold interests in, all its real and personal property material to its
business, except for minor defects in title that do not interfere with its ability to
conduct its business as currently conducted or to utilize such properties for their
intended purposes, and none of the properties, assets or leasehold interests of the
Borrower, ALOSKI or any of their respective Subsidiaries is subject to any Lien, except
as permitted by Section 8.02.
	 
	 	(b)	 	Each of the Borrower, ALOSKI and their respective Subsidiaries owns, or is
licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual
property material to its business, and the use thereof by the Borrower, ALOSKI and
their respective Subsidiaries does not infringe upon the rights of any other Person,
except for any such infringements that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

     SECTION 5.06 Litigation and Environmental Matters.

	 	(a)	 	There are no actions, suits or proceedings by or before any arbitrator or
Governmental Authority pending against or, to the knowledge of the Borrower, threatened
against or affecting the Borrower, ALOSKI or any of their respective 

Page     32

 

	 	 	 	Subsidiaries (i)
as to which there is a reasonable possibility of an adverse determination and that, if
adversely determined, could reasonably be expected, individually or in the aggregate,
to result in a Material Adverse Effect (other than the Disclosed Matters) or (ii) that
involve this Agreement, any of the other Loan Documents or the Transactions.
	 
	 	(b)	 	Except for the Disclosed Matters and except with respect to any other matters
that, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect, neither the Borrower, nor ALOSKI nor any of their respective
Subsidiaries (i) has failed to comply with any Environmental Law or to obtain, maintain
or comply with any permit, license or other approval required under any Environmental
Law, (ii) has become subject to any Environmental Liability, (iii) has received notice
of any claim with respect to any Environmental Liability or (iv) knows of any basis for
any Environmental Liability.
	 
	 	(c)	 	Since the date of this Agreement, there has been no change in the status of the
Disclosed Matters that, individually or in the aggregate, has resulted in, or increased
the likelihood of, a Material Adverse Effect.

     SECTION 5.07 Compliance with Laws and Agreements. Each of the Borrower, ALOSKI and
their respective Subsidiaries is in compliance with all laws, regulations and orders of any
Governmental Authority applicable to it or its property and all indentures, agreements and other
instruments
binding upon it or its property, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect. No Default has
occurred and is continuing.

     SECTION 5.08 Investment and Holding Company Status. Neither the Borrower , nor
ALOSKI, nor any of their respective Subsidiaries is (a) an “investment company” as defined in, or
subject to regulation under, the Investment Company Act of 1940 or (b) a “holding company” as
defined in, or subject to regulation under, the Public Utility Holding Company Act of 1935.

     SECTION 5.09 Taxes. Each of the Borrower, ALOSKI and their respective Subsidiaries
has timely filed or caused to be filed all Tax returns and reports required to have been filed and
has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are
being contested in good faith by appropriate proceedings and for which the Borrower, ALOSKI or any
of their respective Subsidiaries, as applicable, has set aside on its books adequate reserves or
(b) to the extent that the failure to do so could not reasonably be expected to result in a
Material Adverse Effect.

     SECTION 5.10 ERISA. No ERISA Event has occurred or is expected to occur that, when
taken together with all other such ERISA Events for which liability is expected to occur, could
reasonably be expected to result in a Material Adverse Effect. The present value of all
accumulated benefit obligations under each Plan (based on the assumptions used for purposes of
Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent
financial statements reflecting such amounts, exceed by more than $500,000 the fair market value of
the assets of such Plan, and the present value of all accumulated benefit obligations of

Page     33

 

all underfunded Plans (based on the assumptions used for purposes of Statement of Financial
Accounting Standards No. 87) did not, as of the date of the most recent financial statements
reflecting such amounts, exceed by more than $500,000 the fair market value of the assets of all
such underfunded Plans.

     SECTION 5.11 Disclosure. The Borrower has disclosed to the Lenders all agreements,
instruments and corporate or other restrictions to which it, ALOSKI or any of their respective
Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect. None of the reports,
financial statements, certificates or other information furnished by or on behalf of the Borrower
to the Administrative Agent or any Lender in connection with the negotiation of this Agreement or
delivered hereunder (as modified or supplemented by other information so furnished) contains any
material misstatement of fact or omits to state any material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading; provided
that, with respect to projected financial information, the Borrower represents only that such
information was prepared in good faith based upon assumptions believed to be reasonable at the
time.

     SECTION 5.12 Indebtedness. The Borrower, ALOSKI and their respective Subsidiaries
have no Indebtedness, except as disclosed on Schedule 8.01 or otherwise permitted by Section 8.01.

     SECTION 5.13 Subsidiaries. Neither Borrower nor ALOSKI have any Subsidiaries other
than those listed on Schedule 5.13 hereto, and Schedule 5.13 sets forth the jurisdiction of
organization of each Subsidiary and the percentage of the Borrower’s or ALOSKI’S or any
Subsidiary’s ownership of the outstanding voting stock or other ownership or Equity Interests of
each Subsidiary. All of the outstanding Equity Interests of each Subsidiary have been validly
issued, is fully paid, and is nonassessable. The Borrower shall, from time to time as necessary,
deliver to the Administrative Agent an updated Schedule 5.13 to this Agreement, together with a
certificate of an authorized officer of the Borrower certifying that the information set forth in
such schedule is true, correct and complete as of such date. Any new Subsidiary (other than Foreign
Subsidiaries) must immediately execute a Guaranty.

     SECTION 5.14 Inventory. All inventory of the Borrower, ALOSKI and their respective
Subsidiaries has been and will hereafter be produced in compliance with all applicable laws, rules,
regulations, and governmental standards, including, without limitation, the minimum wage and
overtime provisions of the Fair Labor Standards Act, as amended (29 U.S.C. §§ 201-219), and the
regulations promulgated thereunder, except any noncompliance that does not have a Material Adverse
Effect.

     SECTION 5.15 Patents, Trademarks and Copyrights. Schedule 5.15 sets forth a true,
accurate and complete listing, as of the date hereof, of all registered patents, trademarks and
copyrights, and applications therefor, of the Borrower, ALOSKI and their respective Subsidiaries.
Except as created or permitted under the Loan Documents, no Lien exists with respect to the
interests of the Borrower, ALOSKI or any of their respective Subsidiaries in any such patents,
trademarks,
copyrights or applications, and neither the Borrower, nor ALOSKI, nor any of their respective
Subsidiaries has transferred or subordinated any interest it may have in

Page 34

 

such patents, trademarks,
copyrights and applications, except for licenses permitted by Section 8.09(b). The Borrower shall,
from time to time as necessary, deliver to the Administrative Agent an updated Schedule 5.15 to
this Agreement, together with a certificate of an authorized officer of the Borrower certifying
that the information set forth on such schedule is true, correct and complete as of such date.
Upon the request of the Administrative Agent at any time, the Borrower shall execute and deliver
and cause to be executed and delivered assignments of all registered patents, trademarks,
copyrights and applications therefor included in the Collateral, in favor of the Administrative
Agent for the benefit of the Administrative Agent and the Lenders, which assignments shall be in
form and substance satisfactory to the Administrative Agent and in proper form (i) for recording in
the U.S. Patent and Trademark Office to properly reflect the Administrative Agent’s security
interest in all U.S. patents, trademarks and applications therefor included in the Collateral and
(ii) for recording with the U.S. Library of Congress to properly reflect the Administrative Agent’s
security interest in all U.S. copyrights and applications therefor included in the Collateral.

     SECTION 5.16 Margin Securities. Neither the Borrower, nor ALOSKI, nor any of their
respective Subsidiaries is engaged principally, or as one of its important activities, in the
business of extending credit for the purpose of purchasing or carrying any “margin stock” within
the meaning of Regulation T, U or X of the Board, as amended. No part of the proceeds of any
Borrowing will be used, directly or indirectly, to purchase or carry any margin stock or to extend
credit to others for the purpose of purchasing or carrying margin stock.

     SECTION 5.17 Labor Matters. Except for any of the following that would not have a
Material Adverse Effect, (a) there are no actual or threatened strikes, labor disputes, slow downs,
walkouts, work stoppages, or other concerted interruptions of operations that involve any employees
employed at any time in connection with the business activities or operations at any of the
Borrower’s, ALOSKI’s or their respective Subsidiaries’ locations, (b) hours worked by and payment
made to the employees of the Borrower, ALOSKI or their respective Subsidiaries have not been in
violation of the Fair Labor Standards Act or any other applicable laws, rules and regulations
pertaining to labor matters, (c) all payments due from the Borrower, ALOSKI or their respective
Subsidiaries for employee health and welfare insurance, including, without limitation, workers’
compensation insurance, have been paid or accrued as a liability on its books, (d) the business
activities and operations of the Borrower, ALOSKI and their respective Subsidiaries are in
compliance with the Occupational Safety and Health Act of 1970, 29 U.S.C. § 651 et seq. and other
applicable health and safety laws, rules and regulations.

     SECTION 5.18 Solvency. On the Effective Date and on the date of each Borrowing, the
Borrower, ALOSKI and each of their respective Subsidiaries are, and after giving effect to the
Transactions and the requested Borrowing and application of proceeds of the requested Borrowing,
will be, Solvent.

     SECTION 5.19 Reserved.

     SECTION 5.20 Permits, Licenses, Etc. The Borrower, ALOSKI and each of their
respective Subsidiaries possess all permits, licenses, patents, patent rights, trademarks,
trademark rights, trade names, trade name rights and copyrights which are required to conduct

Page 35

 

their
respective businesses, except to the extent that failure to do so does not result in or could not
reasonably be expected to result in a Material Adverse Effect.

ARTICLE VI

Conditions

     SECTION 6.01 Effective Date. The obligations of the Lenders to make Loans hereunder
shall not become effective until the date on which the Administrative Agent (or its counsel) has
received (or waived in writing in accordance with Section 12.02) each of the following, in form and
substance satisfactory to the Administrative Agent:

	 	(a)	 	Credit Agreement. Either (i) a counterpart of this Agreement signed on
behalf of each party hereto or (ii) written evidence satisfactory to the Administrative
Agent (which may include telecopy transmission of a signed signature page of this
Agreement) that such party has signed a counterpart of this Agreement.
	 
	 	(b)	 	Organizational and Authorization Matters. Such documents and
certificates as the Administrative Agent or its counsel may request relating to the
organization, existence and good standing of the Borrower, ALOSKI and their respective
Subsidiaries, the authorization of the Transactions, incumbency of officers, specimen
signatures and any other legal matters relating to the Borrower, ALOSKI and their
respective Subsidiaries, the Loan Documents or the Transactions, all in form and
substance satisfactory to the Administrative Agent and its counsel.
	 
	 	(c)	 	Corporate Structure; Capitalization; Subordinated Debt. (i) Evidence
of the Borrower’s and ALOSKI’s corporate and subsidiary structure, which evidence and
structure shall be satisfactory to the Administrative Agent; and (ii) copies of all
documents evidencing or relating to the Equity Interests, certified by a Financial
Officer as complete and correct, which documents shall be satisfactory to the
Administrative Agent in all respects.
	 
	 	(d)	 	Governmental and Third Party Approvals. All governmental and
third-party approvals necessary or advisable, in the judgment of the Administrative
Agent, in connection with the Loans and in connection with the continuing operations of
each of the Borrower, ALOSKI and their respective Subsidiaries.
	 
	 	(e)	 	Financial Statements. The financial statements specified in Section
5.04.
	 
	 	(f)	 	Notes. The Notes executed by the Borrower.
	 
	 	(g)	 	Security Agreement and Guaranty. The Security Agreement executed by
the Borrower and the Guarantors (other than Alon USA and Alon Interests), and the
Guaranty executed by the Guarantors.

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	 	(h)	 	Financing Statements. Properly completed Uniform Commercial Code
financing statements naming the Borrower and the Guarantors as debtors and covering the
Collateral.
	 
	 	(i)	 	Equity Interests. The original certificates representing the Equity
Interests included in the Collateral, together with transfer powers duly executed in
blank by the Borrower and the applicable Guarantors.
	 
	 	(j)	 	Instruments and Chattel Paper. The originals of any and all
instruments and chattel paper included in the Collateral, including without limitation,
all promissory notes evidencing all intercompany Indebtedness owed to Borrower or any
Guarantor by Borrower, ALOSKI or any of their respective Subsidiaries, each endorsed to
the order of the Administrative Agent.
	 
	 	(k)	 	Intellectual Property Documentation. Documentation satisfactory to the
Administrative Agent, executed by the appropriate parties, (i) for recording in the
U.S. Patent and Trademark Office to properly reflect the Administrative Agent’s
security interest in all U.S. patents, trademarks and applications therefor of the
Borrower and the Guarantors, and (ii) for recording with the United States Library of
Congress to properly reflect the Administrative Agent’s security interest in all U.S.
copyrights and applications therefor of the Borrower and the Guarantors.
	 
	 	(l)	 	Field Audit; Due Diligence. Completion and satisfactory results of all
due diligence conducted by the Administrative Agent.
	 
	 	(m)	 	Insurance Policies. Certificate(s) of insurance evidencing all
insurance policies required by Section 7.07, together with loss payable endorsements
(where applicable) in favor of the Administrative Agent, for the benefit of the
Administrative Agent and the Lenders, with respect to all insurance policies covering
Collateral.
	 
	 	(n)	 	Lien Searches. The results of UCC, tax and judgment lien searches
showing all financing statements, other documents or instruments and tax and judgment
liens on file against each of the Borrower and the Guarantors in such jurisdictions as
the Administrative Agent may require, such searches to be as of a date satisfactory to
the Administrative Agent.
	 
	 	(o)	 	Opinion of Counsel. Favorable written opinions (addressed to the
Administrative Agent and the Lenders and dated the Effective Date) of Bracewell &
Giuliani L.L.P., counsel for the Borrower and ALOSKI and their respective Subsidiaries
and the other Guarantors. Such opinions shall be in form and substance satisfactory to
the Administrative Agent. The Borrower hereby requests such counsel to deliver such
opinions.
	 
	 	(p)	 	Indebtedness. All terms of the Material Indebtedness of the Borrower,
ALOSKI and their respective Subsidiaries which shall be satisfactory to the Lenders,
and all requisite consents, approvals and amendments relating to such Material

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	 	 	 	Indebtedness, which shall be in form and substance satisfactory to the Administrative
Agent.
	 
	 	(q)	 	Compliance Certificate. An initial Compliance Certificate, dated the
Effective Date and signed by a Financial Officer of the Borrower, or Alon USA on behalf
of Borrower, confirming compliance with the conditions set forth in paragraphs (a), (b)
and (c) of Section 6.02 and showing compliance as of March 31, 2007 with the financial
covenants set forth in Article IX.
	 
	 	(r)	 	Solvency Certificates. Upon request by Administrative Agent,
Certificates, dated the Effective Date and signed by a Financial Officer of the
Borrower, ALOSKI and each of their respective Subsidiaries certifying as to the
Solvency of the Borrower, ALOSKI and each of their respective Subsidiaries as of the
Effective Date and after giving effect to the Transactions.
	 
	 	(s)	 	Fees and Expenses. All fees and other amounts due and payable on or
prior to the Effective Date, including (1) all fees payable to the Administrative Agent
and each Lender under this Agreement or any separate agreement or fee letter, and (2)
to the extent invoiced, reimbursement or payment of all attorneys’ fees and
out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder.
	 
	 	(t)	 	Liens. Evidence, including payoff letters (including, without
limitation, affirmative obligations of such creditors to promptly file of UCC-3
termination statements with respect to such existing Liens), that all existing Liens on
any assets of each of the Skinny’s, Inc., Borrower, ALOSKI and their respective
Subsidiaries have been or simultaneously with the Effective Date of this Agreement are
being terminated and/or released.
	 
	 	(u)	 	Leases. Copies of all real estate leases and subleases entered into by
the Borrower, certified by a Financial Officer as complete and correct, which leases
and subleases shall be satisfactory to the Administrative Agent in all respects.
	 
	 	(v)	 	Landlord’s Agreements. Landlord’s waivers or subordination agreements
for each location of Collateral as the Administrative Agent may require, each in the
form and substance satisfactory to the Administrative Agent and executed by the
respective landlords of such locations.
	 
	 	(w)	 	Skinny’s Acquisition Documents. True and correct copies of the
Skinny’s Merger Agreement and all other agreements, consents, instruments certificates
and opinions delivered in connection therewith (the “Skinny’s Acquisition
Documents”), which shall all be in full force and effect. The Skinny’s Acquisition
Documents shall not have been materially amended, supplemented or otherwise modified
since the date thereof, except as may have been consented to in writing by the Lenders. The Skinny’s Acquisition Documents shall be accompanied
by a certificate, dated the Effective Date, of a officer of each of the Borrower,
ALOSKI and each of their respective Subsidiaries party thereto to such

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	 	 	 	effect. The transactions described in the Skinny’s Acquisition Documents shall have been
consummated materially and substantially in accordance with the terms and provisions
thereof and each of the Borrower, ALOSKI, their respective Subsidiaries and each
other party to the Skinny’s Acquisition Documents shall be in compliance in all
material respects with all the terms of the Skinny’s Acquisition Documents to which
it is a party and the Administrative Agent shall have received, with a copy of each
Lender, a certificate of an officer of each of the Borrower, ALOSKI and each of
their respective Subsidiaries certifying that the only condition to the consummation
of the Skinny’s Acquisition remaining to be satisfied under the Skinny’s Acquisition
Documents is the delivery of funds sufficient to pay the consideration under the
Skinny’s Acquisition Documents and the receipt of all UCC-3 termination statements
with respect to any Liens encumbering the assets of Skinny’s, Inc. or any of its
subsidiaries.
	 
	 	(x)	 	Additional Documentation. Such additional documents and certificates
as the Administrative Agent or its counsel may request relating to the organization,
existence and good standing of each of the Borrower, ALOSKI and their respective
Subsidiaries, the authorization of the Transactions, and any other legal matters
relating to the Borrower, ALOSKI, their respective Subsidiaries, this Agreement or the
Transactions, all in form and substance satisfactory to the Administrative Agent and
its counsel.

The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such
notice shall be conclusive and binding. Notwithstanding any provision of the Loan Documents to the
contrary, in the event Borrower fails to satisfy all of the requirements of this Section
6.01 on or before August 15, 2007, Administrative Agent and Lenders shall have no further
obligation to make any Loan, and Administrative Agent shall have the option to terminate the
Commitments.

     SECTION 6.02 Each Credit Event. The obligation of each Lender to make a Loan on the
occasion of any Borrowing, is subject to the satisfaction of the following conditions:

	 	(a)	 	Representations and Warranties. The representations and warranties of
the Borrower set forth in this Agreement and the other Loan Documents shall be true and
correct in all material respects on and as of the date of such Borrowing.
	 
	 	(b)	 	No Default. At the time of and immediately after giving effect to such
Borrowing, no Default shall have occurred and be continuing.
	 
	 	(c)	 	Borrowing Request Form. With respect to any Borrowing, the
Administrative Agent shall have received, in accordance with Section 2.03, a Borrowing
Request Form, dated the date of such Borrowing, executed by an authorized officer of
the Borrower.

Each Borrowing shall be deemed to constitute a representation and warranty by the Borrower on the
date thereof as to the matters specified in paragraphs (a), (b) and (c) of this Section.

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ARTICLE VII

Affirmative Covenants

     Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder shall have been paid in full, the Borrower covenants and
agrees with the Administrative Agent and the Lenders that:

     SECTION 7.01 Financial Statements and Other Information. The Borrower will furnish to
the Administrative Agent:

	 	(a)	 	(i) within 120 days after the end of each fiscal year of the Borrower, combined
Borrower’s, ALOSKI’s and their respective Subsidiaries’ unaudited, internally prepared
consolidated and consolidating balance sheet and related statements of operations,
income statements, stockholders’ equity and cash flows as of the end of and for such
year, setting forth in each case in comparative form the figures for the previous
fiscal year, all reported on and certified by a Financial Officer of Borrower (or of
Alon USA on behalf of Borrower)(without a “going concern” or like qualification or
exception and without any qualification or exception as to the scope of such audit) to
the effect that such consolidated financial statements present fairly in all material
respects the financial condition and results of operations of the Borrower, ALOSKI and
their respective consolidated Subsidiaries on a consolidated basis in accordance with
GAAP consistently applied subject to the absence of footnotes; and (ii) within 120 days
after the end of each fiscal year of the Alon USA, its audited consolidated and
consolidating balance sheet and related statements of operations, income statements,
stockholders’ equity and cash flows as of the end of and for such year, setting forth
in each case in comparative form the figures for the previous fiscal year, all reported
on by independent public accountants of recognized national standing (without a “going
concern” or like qualification or exception and without any qualification or exception
as to the scope of such audit) to the effect that such consolidated financial
statements present fairly in all material respects the financial condition and results
of operations of the Alon USA and its consolidated Subsidiaries on a consolidated basis
in accordance with GAAP consistently applied;
	 
	 	(b)	 	within 30 days after the end of each of the first three fiscal quarters of each
fiscal year of the Borrower, combined Borrower’s, ALOSKI’s and their respective
Subsidiaries’ internally prepared consolidated and consolidating balance sheet and
related statements of operations, stockholders’ equity and cash flows as of the end of
and for such fiscal quarter and the then elapsed portion of the fiscal year, setting
forth in each case in comparative form the figures for the corresponding
period or periods of (or, in the case of the balance sheet, as of the end of) the
previous fiscal year, all certified by a Financial Officer of Borrower (or of Alon
USA on behalf of Borrower) as presenting fairly in all material respects the
financial condition and results of operations of the Borrower, ALOSKI and their

Page 40

 

	 	 	 	respective Subsidiaries on a consolidated basis in accordance with GAAP consistently
applied, subject to normal year-end audit adjustments and the absence of footnotes;
	 
	 	(c)	 	concurrently with any delivery of financial statements under clause (a), a
Compliance Certificate of a Financial Officer of the Borrower, or Alon USA on behalf of
Borrower, (i) certifying as to whether a Default has occurred and, if a Default has
occurred, specifying the details thereof and any action taken or proposed to be taken
with respect thereto, (ii) setting forth detailed calculations demonstrating compliance
with the financial covenants set forth herein and (iii) in the case of clause (b) only,
stating whether any change in GAAP or in the application thereof has occurred since the
date of the audited financial statements and, if any such change has occurred,
specifying the effect of such change on the financial statements accompanying such
certificate;
	 
	 	(d)	 	promptly following any request therefor, such projections, budgets and other
information regarding the operations, business affairs and financial condition of any
Guarantor, the Borrower, ALOSKI or any of their respective Subsidiaries, or compliance
with the terms of this Agreement and the other Loan Documents, as the Administrative
Agent may reasonably request.

     SECTION 7.02 Notices of Material Events. The Borrower will furnish to the
Administrative Agent and each Lender prompt written notice of the following:

	 	(a)	 	the occurrence of any Default;
	 
	 	(b)	 	the filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting the Borrower or any Affiliate
thereof that, if adversely determined, could reasonably be expected to result in a
Material Adverse Effect;
	 
	 	(c)	 	the occurrence of any ERISA Event that, alone or together with any other ERISA
Events that have occurred, could reasonably be expected to result in liability of the
Borrower, ALOSKI and their respective Subsidiaries in an aggregate amount exceeding
$500,000; and
	 
	 	(d)	 	any other development that results in, or could reasonably be expected to
result in, a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer
or other executive officer of the Borrower setting forth the details of the event or
development requiring such notice and any action taken or proposed to be taken with respect
thereto.

     SECTION 7.03 Existence; Conduct of Business. The Borrower will, and will cause ALOSKI
and each of their respective Subsidiaries to, do or cause to be done all things necessary to
preserve, renew and keep in full force and effect its legal existence and the rights,

Page 41

 

licenses,
permits, privileges, agreements and franchises material to the conduct of its business;
provided that the foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 8.03.

     SECTION 7.04 Payment of Obligations. The Borrower will, and will cause ALOSKI and
each of their respective Subsidiaries to, pay its obligations, including Tax liabilities, that, if
not paid, could result in a Material Adverse Effect or become a Lien on any of its property, before
the same shall become delinquent or in default, except where (a) the validity or amount thereof is
being contested in good faith by appropriate proceedings, (b) the Borrower, ALOSKI or such of their
respective Susidiaries has set aside on its books adequate reserves with respect thereto in
accordance with GAAP and (c) the failure to make payment pending such contest could not reasonably
be expected to result in a Material Adverse Effect.

     SECTION 7.05 Maintenance of Properties. The Borrower will, and will cause ALOSKI and
each of their respective Subsidiaries to keep, maintain and preserve all property (tangible and
intangible) material to the conduct of its business in good working order and condition, ordinary
wear and tear excepted.

SECTION 7.06 Books and Records; Inspection Rights

	 	(a)	 	The Borrower will, and will cause ALOSKI and each of their respective
Subsidiaries to, keep proper books of record and account in which full, true and
correct entries are made of all dealings and transactions in relation to its business
and activities. The Borrower will, and will cause ALOSKI and each of their respective
Subsidiaries to, permit any representatives designated by the Administrative Agent to
visit and inspect its properties, to examine and make extracts from its books and
records, and to discuss its affairs, finances and condition with its officers and
independent accountants, all at such times and as often as requested; provided,
however, that such visits will be conducted no more than three (3) times in any fiscal
year unless a Default or Event of Default occurs.
	 
	 	(b)	 	The Borrower will, and will cause ALOSKI and each of their respective
Subsidiaries to, permit any representatives designated by the Administrative Agent
(including any consultants, accountants, lawyers and appraisers retained by the
Administrative Agent) to conduct evaluations and appraisals of the Borrower’s and/or
ALOSKI’s and/or each of their respective Subsidiaries’ assets, all at such times and as
often as requested; provided, however, that such evaluations and appraisals shall not
be requested more than three (3) times per fiscal year unless a Default or Event of
Default occurs. The Borrower shall pay the fees and expenses
of any representatives retained by the Administrative Agent to conduct any such
evaluation or appraisal.

     SECTION 7.07 Insurance. The Borrower will maintain, and will cause ALOSKI and each of
their respective Subsidiaries to maintain, insurance with financially sound and reputable insurance
companies in such amounts and covering such risks as is usually carried by corporations engaged in
similar businesses and owning similar properties in the same general areas in which the Borrower,
ALOSKI and their respective Subsidiaries operate, provided that in

Page 42

 

any event the Borrower will
maintain and cause ALOSKI and each Subsidiary to maintain workers’ compensation insurance or
voluntary benefits and excess employers liability plans, property insurance, comprehensive general
liability insurance, and products liability insurance satisfactory to the Lenders. Each property
insurance policy covering Collateral shall name the Administrative Agent as loss payee for the
benefit of the Lenders and shall provide that such policy will not be canceled or reduced without
thirty (30) days’ prior written notice to the Administrative Agent.

     SECTION 7.08 Compliance with Laws. The Borrower will, and will cause ALOSKI each of
their respective Subsidiaries to, and with respect to ERISA will cause each of its ERISA Affiliates
to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to
it or its property, except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

     SECTION 7.09 Use of Proceeds. The proceeds of the Loans will be used only for the
Skinny’s Acquisition and for refinancing existing indebtedness of Borrower. No part of the
proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a
violation of any of the Regulations of the Board, including Regulations T, U and X.

     SECTION 7.10 Compliance with Agreements. The Borrower will comply, and will cause
ALOSKI and each of their respective Subsidiaries to comply, in all material respects with all
agreements, contracts, and instruments binding on it or affecting its properties or business.

     SECTION 7.11 Additional Subsidiaries. If any additional Subsidiary is formed or
acquired after the Effective Date, the Borrower will notify the Administrative Agent and the
Lenders thereof and (a) the Borrower will cause such Subsidiary (except any Foreign Subsidiary) to
become a Guarantor within three Business Days after such Subsidiary is formed or acquired and
promptly take such actions to create and perfect Liens on such Subsidiary’s assets to secure the
Obligations as the Administrative Agent or the Required Lenders shall request, (b) if any Equity
Interest in or Indebtedness of such Subsidiary are owned by or on behalf of the Borrower or any
Guarantor, the Borrower will cause such Equity Interests and promissory notes evidencing such
Indebtedness to be pledged to the Administrative Agent and the Lenders within three Business Days
after such Subsidiary is formed or acquired (except that, if such Subsidiary is a Foreign
Subsidiary, shares of common stock of such Subsidiary to be pledged may be limited to 65% of
the outstanding shares of common stock of such Subsidiary), and (c) Borrower and each
Guarantor will execute and deliver a Contribution and Indemnification Agreement.

     SECTION 7.12 Skinney’s Acquisition. Simultaneously with the consummation of the
Skinny’s Acquisition, (a) the Borrower must cause ALOSKI and each of ALOSKI’S Subsidiaries to
execute a Guaranty and become Guarantors, and promptly take such actions to create and perfect
Liens on the assets of ALOSKI and its Subsidiaries to secure the Obligations as the Administrative
Agent or the Required Lenders shall request, (b) if any Equity Interest in or Indebtedness of such
Subsidiary are owned by or on behalf of the Borrower or any Guarantor, the Borrower will cause such
Equity Interests and promissory notes evidencing such Indebtedness to be pledged to the
Administrative Agent and the Lenders simultaneously with the acquisition of such subsidiary (except
that, if such subsidiary is a Foreign subsidiary, shares of

Page 43

 

common stock of such subsidiary to be
pledged may be limited to 65% of the outstanding shares of common stock of such subsidiary), and
(c) Borrower and each Guarantor will execute and deliver a Contribution and Indemnification
Agreement.

     SECTION 7.13 Environmental Matters. The Borrower shall cause each Subsidiary to
comply in all material respects with all limitations, restrictions, conditions, standards,
prohibitions, requirements, obligations, schedules, and timetables contained in any Environmental
Laws.

     SECTION 7.14 Further Assurances. The Borrower will, and will cause each Subsidiary
to, execute and deliver such further agreements and instruments and take such further action as may
be requested by the Administrative Agent to carry out the provisions and purposes of this Agreement
and the other Loan Documents and to create, preserve, and perfect the Liens of the Administrative
Agent, for the benefit of the Administrative Agent and the Lenders, in the Collateral.

     SECTION 7.15 Ratification. The Borrower will, and will cause each Guarantor to
deliver on or before August 15, 2007, certified copies of executed resolutions of the Borrower and
each Guarantor specifically ratifying the authority of Borrower and Guarantors to execute and
deliver each of the Loan Documents, and to perform their obligations under each of the Loan
Documents.

ARTICLE VIII

Negative Covenants

     Until the Commitments have expired or terminated and the principal of and interest on each
Loan and all fees payable hereunder have been paid in full, the Borrower covenants and agrees with
the Administrative Agent and the Lenders that:

     SECTION 8.01 Indebtedness. The Borrower will not, and will not permit ALOSKI or any
of their respective Subsidiaries to,
create, incur, assume or permit to exist any Indebtedness, including without limitation
Subordinated Debt, except:

	 	(a)	 	Indebtedness created hereunder;
	 
	 	(b)	 	Indebtedness existing on the date hereof and set forth in Schedule 8.01, and
extensions, renewals and replacements of any such Indebtedness that do not increase the
outstanding principal amount thereof or result in an earlier maturity date;
	 
	 	(c)	 	Indebtedness of the Borrower to any Guarantor and of any Guarantor to the
Borrower or any other Guarantor;

Page 44

 

	 	(d)	 	Guarantees by the Borrower of Indebtedness (other than Guarantees in favor of
Administrative Agent) of any Guarantor which when combined do not exceed $250,000 in
the aggregate;
	 
	 	(e)	 	Guarantees in favor of Administrative Agent;
	 
	 	(f)	 	Capital Lease Obligations (including those set forth in Schedule 8.01),
provided that no Default exists or results therefrom;
	 
	 	(g)	 	purchase money Indebtedness of the Borrower, ALOSKI or any of their respective
Subsidiaries (including Indebtedness set forth in Schedule 8.01) representing the
purchase price of Capital Expenditures, that is secured by the asset purchased,
provided that no Default exists or results therefrom;
	 
	 	(h)	 	Indebtedness referred to in the definition of Good Time Acquisition.
	 
	 	(i)	 	Indebtedness of the Borrower, ALOSKI or any of their respective Subsidiaries
incurred to finance the acquisitions permitted under Section 8.04(g) which is not
secured by a Lien on the Collateral, and extensions, renewals and replacements of any
such Indebtedness that do not increase the outstanding principal amount thereof or
result in an earlier maturity date;
	 
	 	(j)	 	Hedging Agreements permitted by Section 8.05;
	 
	 	(k)	 	Indebtedness from judgments that otherwise do not constitute a Default or Event
of Default; and
	 
	 	(l)	 	Indebtedness other than those listed in (a) through (k) above in the aggregate
amount of $2,000,000 during the term of this Agreement.

Without in any way limiting the foregoing, no Subordinated Debt shall be permitted unless and until
Required Lenders shall have consented to such Subordinated Debt and approved all documents and
terms related thereto, which consent and approval may be granted or withheld in the sole and
absolute discretion of Required Lenders.

     SECTION 8.02 Liens. The Borrower will not, and will not permit ALOSKI or any of their
respective Subsidiaries to, create, incur, assume or permit to exist any Lien on any property or
asset (including without limitation stock or other Equity Interests in any of the Subsidiaries) now
owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts
receivable) or rights in respect of any thereof, except:

	 	(a)	 	Permitted Encumbrances;
	 
	 	(b)	 	any Lien that is set forth on Schedule 8.02 and exists as of the date hereof on
any property or asset of the Borrower, ALOSKI or any of their respective Subsidiaries;
provided that (i) such Lien shall not apply to any other property or asset of
the Borrower, ALOSKI or any of their respective Subsidiaries and (ii) such Lien shall
secure only those obligations which it secures on the date

Page 45

 

	 	 	 	hereof and extensions,
renewals and replacements thereof that do not increase the outstanding principal amount
thereof;
	 
	 	(c)	 	Liens securing Indebtedness permitted by clauses (f) and (g) of Section 8.01;
	 
	 	(d)	 	Liens securing Indebtedness permitted by clauses (h) and (i) of Section 8.01 to
the extent such Liens do not cover the Collateral; and
	 
	 	(e)	 	Liens created under the Loan Documents.

     SECTION 8.03 Fundamental Changes.

	 	(a)	 	The Borrower will not, and will not permit ALOSKI or any of their respective
Subsidiaries to, merge into or consolidate with any other Person, or permit any other
Person to merge into or consolidate with it, or liquidate or dissolve, except that, if
at the time thereof and immediately after giving effect thereto no Default shall have
occurred and be continuing, (i) any Subsidiary or ALOSKI may merge into the Borrower
in a transaction in which the Borrower is the surviving corporation, (ii) any
Subsidiary that is not a Guarantor may merge into any wholly-owned Subsidiary in a
transaction in which the surviving entity is a wholly-owned Subsidiary, (iii) any
Guarantor may be dissolved, liquidated or merged into another Subsidiary, so long as
such dissolution, liquidation or merger results in all assets of such Guarantor being
owned by the Borrower or another Guarantor, and (iv) any Subsidiary that is not a
Guarantor may liquidate or dissolve if the Borrower determines in good faith that such
liquidation or dissolution is in the best interests of the Borrower and is not
disadvantageous to the Lenders and so long as such liquidation or dissolution results
in all assets of such Subsidiary being owned by the Borrower or a wholly-owned
Subsidiary.
	 
	 	(b)	 	The Borrower will not, and will not permit ALOSKI or any of their respective
Subsidiaries to, engage in any business other than businesses of the type
conducted by the Borrower, ALOSKI or any of their respective Subsidiaries on the
date of execution of this Agreement and businesses reasonably related thereto.
	 
	 	(c)	 	The Borrower will not, and will not permit ALOSKI or any of their respective
Subsidiaries to, change their respective fiscal years.

     SECTION 8.04 Investments, Loans, Advances, Guarantees and Acquisitions. The Borrower
will not, and will not permit ALOSKI or any of their respective Subsidiaries to, purchase, hold or
acquire (including pursuant to any merger with any Person that was not a wholly owned Subsidiary
prior to such merger) any Equity Interests, evidences of indebtedness or other securities
(including any option, warrant or other right to acquire any of the foregoing) of, make or permit
to exist any loans or advances to, Guarantee any obligations of, or make or permit to exist any
investment or any other interest in, any other Person, or purchase or otherwise acquire (in one
transaction or a series of transactions) all or substantially all of the assets of any other Person
or any assets of any other Person constituting a business unit or division, except:

Page 46

 

	 	(a)	 	Permitted Investments;
	 
	 	(b)	 	Equity Interests existing on the date hereof in the Subsidiaries;
	 
	 	(c)	 	Equity Interests in Subsidiaries formed after the Effective Date provided that
each such Subsidiary becomes a Guarantor and otherwise complies with the requirements
of Section 7.11;
	 
	 	(d)	 	loans or advances made by the Borrower to any Guarantor and made by any
Guarantor to the Borrower or any other Guarantor;
	 
	 	(e)	 	accounts receivable for sales of inventory and other products and services
provided by the Borrower, ALOSKI and their respective Subsidiaries to their respective
customers in the ordinary course of business of the Borrower, ALOSKI and their
respective Subsidiaries;
	 
	 	(f)	 	the Skinny’s Acquisition provided that ALOSKI becomes a Guarantor and executes
the Security Agreement;
	 
	 	(g)	 	Permitted Acquisitions;
	 
	 	(h)	 	Capital Expenditures; and
	 
	 	(i)	 	Guarantees constituting Indebtedness permitted by Section 8.01.

     SECTION 8.05 Hedging Agreements. The Borrower will not, and will not permit ALOSKI or
any of their respective Subsidiaries to, enter into any Hedging Agreement; provided, however, that
Borrower, ALOSKI and their respective Subsidiaries shall be permitted to enter into Hedging
Agreements in the ordinary course of business with Administrative Agent or a third party acceptable
to Administrative Agent to (i) hedge interest rate risk on the Loans, or (ii) hedge up to
$500,000 in the aggregate of any other type of risk.

     SECTION 8.06 Restricted Payments; Certain Payments of Indebtedness.

	 	(a)	 	The Borrower will not, and will not permit ALOSKI or any of their respective
Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any
Restricted Payment or incur any obligation, (contingent or otherwise) to do so, except
(i) the Borrower may declare and pay dividends with respect to its Equity Interests
payable solely in additional Equity Interests in Borrower, (ii) Borrower may declare
and pay dividends to any Guarantor (including, without limitation, Alon Interests), and
(iii) Subsidiaries may declare and pay dividends to the Borrower or any Guarantor.
	 
	 	(b)	 	The Borrower will not, and will not permit ALOSKI or any of their respective
Subsidiaries to, make or agree to pay or make, directly or indirectly, any payment or
other distribution (whether in cash securities or other property) of or in respect of
principal of or interest on any Indebtedness, or any payment or other distribution
(whether in cash, securities or other property), including any sinking

Page 47

 

	 	 	fund or similar
deposit, on account of the purchase, redemption, retirement, acquisition, cancellation
or termination of any Indebtedness, except:

	 	(i)	 	payment of Indebtedness created under the Loan Documents;
	 
	 	(ii)	 	refinancings of Indebtedness to the extent permitted by Section
8.01;
	 
	 	(iii)	 	payment of secured Indebtedness that becomes due as a result
of the voluntary sale or transfer of the property or assets securing such
Indebtedness, provided that such sale or transfer is otherwise permitted by
this Agreement;
	 
	 	(iv)	 	payment or prepayment of Capital Lease Obligations, so long as
no Default is existing or would result therefrom; and
	 
	 	(v)	 	payment when due of obligations under Hedging Agreements.

     SECTION 8.07 Transactions with Affiliates. The Borrower will not, and will not permit
ALOSKI or any of their respective Subsidiaries to, sell, lease or otherwise transfer any property
or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise
engage in any other transactions with, any of its Affiliates, except as permitted in this Agreement
and except (a) in the ordinary course of business at prices and on terms and conditions not less
favorable to the Borrower, ALOSKI and their respective Subsidiaries than could be obtained on an
arm’s-length basis from unrelated third parties, (b) transactions between or among the Borrower and
the Guarantors not involving any other Affiliate, and (c) any Restricted Payment permitted by
Section 8.06.

     SECTION 8.08 Restrictive Agreements. The Borrower will not, and will not permit
ALOSKI or any of their respective Subsidiaries to, directly or indirectly, enter into, incur or
permit to exist any agreement or other arrangement that prohibits, restricts or imposes any
condition upon (a) the ability of the Borrower, ALOSKI or any of their respective Subsidiaries to
create, incur or permit to exist any Lien upon any of its property or assets, or (b) the ability of
any of their respective Subsidiaries to pay dividends or other distributions with respect to any
Equity Interests in such Subsidiary or to make or repay loans or advances to the Borrower, ALOSKI
or any of their respective Subsidiaries or to Guarantee Indebtedness of the Borrower, ALOSKI or any
of their respective Subsidiaries; provided that (i) the foregoing shall not apply to
restrictions and conditions imposed by law or by any Loan Document, (ii) the foregoing shall not
apply to restrictions and conditions existing on the date hereof identified on Schedule 8.08 (but
shall apply to any extension or renewal of, or any amendment or modification expanding the scope
of, any such restriction or condition), (iii) the foregoing shall not apply to customary
restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending
such sale, provided such restrictions and conditions apply only to the Subsidiary that is to be
sold and such sale is permitted hereunder, (iv) clause (a) of the foregoing shall not apply to
restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted by
this Agreement if such restrictions or conditions apply only to the property or assets securing
such Indebtedness and (v) clause (a) of the foregoing shall not apply to customary provisions in
leases and other contracts restricting the assignment thereof.

Page 48

 

     SECTION 8.09 Disposition of Assets. Except as otherwise permitted in Section 8.03,
the Borrower will not, and will not permit ALOSKI or any of their respective Subsidiaries to sell,
lease, assign, transfer, or otherwise dispose of any of their respective assets (including without
limitation stock or other Equity Interests in any of the Subsidiaries or any of the voting rights
of any such stock or other Equity Interests); provided, however, that the following
dispositions shall be permitted so long as the Borrower, ALOSKI and their respective Subsidiaries,
as applicable, receive full, fair and reasonable consideration at the time of such disposition at
least equal to the fair market value of such asset being disposed and the proceeds of such
disposition are deposited in accounts of Borrower maintained at the offices of Administrative
Agent:

	 	(a)	 	dispositions of inventory in the ordinary course of business of the Borrower,
ALOSKI and their respective Subsidiaries;
	 
	 	(b)	 	non-exclusive licenses of intellectual property and leases and licenses of
other property by the Borrower, ALOSKI and their respective Subsidiaries to their
respective customers in connection with providing products and services to such
customers in the ordinary course of business of the Borrower, ALOSKI and their
respective Subsidiaries.
	 
	 	(c)	 	sales, transfers and other dispositions to the Borrower, ALOSKI or any of their
respective wholly-owned Subsidiaries that are Guarantors;
	 
	 	(d)	 	disposition of assets that are worn out, obsolete or no longer used or useful
in the conduct of the business of the Borrower, ALOSKI and their respective
Subsidiaries in Borrower’s reasonable business judgment;
	 
	 	(e)	 	disposition of up to 6 convenience stores during any fiscal year, the proceeds
of which are applied to the Obligations;
	 
	 	(f)	 	disposition of up to 10 convenience stores during any fiscal year, which are
replaced by convenience stores of similar value within six (6) months after the
disposition of such stores;
	 
	 	(g)	 	disposition of any convenience stores during any fiscal year which are not
owned by any entity which is a party to the Security Agreement, which are not subject
to a Lien created under the Loan Documents or which are subject to a Lien permitted
under Section 8.02 (b) and (c);
	 
	 	(h)	 	other asset dispositions which do not exceed $1,000,000 in the aggregate during
the term of this Agreement; and
	 
	 	(i)	 	disposition of any of the convenience stores listed on Schedule 8.09(i), the
proceeds of which must be applied by Borrower and ALOSKI to the Obligations.

     SECTION 8.10 Sale and Leaseback. The Borrower will not enter into, and will not
permit ALOSKI or any of their respective Subsidiaries to enter into, any arrangement with any

Page 49

 

Person pursuant to which it leases from such Person real or personal property that has been or is
to be sold or transferred, directly or indirectly, by it to such Person; provided that the
Borrower, ALOSKI and their respective Subsidiaries will be permitted to enter into such
arrangements involving sales of personal property not to exceed $500,000 in the aggregate during
the term of this Agreement in connection with Capital Lease Obligations permitted by Section
8.01(e).

     SECTION 8.11 Accounting. The Borrower will not, and will not permit ALOSKI or any of
their respective Subsidiaries to, change its fiscal year or make any change (a) in accounting
treatment or reporting practices, except as required by GAAP and disclosed to the Administrative
Agent, or (b) in tax reporting treatment, except as required by law and disclosed to the
Administrative Agent.

     SECTION 8.12 Amendment of Material Documents. The Borrower will not, and will not
permit ALOSKI or any of their respective Subsidiaries to, amend, modify or waive any of its rights
or obligations under its certificate of incorporation, by-laws, other organizational documents or
any documents evidencing or relating to any Indebtedness of the Borrower, ALOSKI or any of their
respective Subsidiaries, unless such amendment, modification or waiver would not create a Material
Adverse Effect. At any time any Subordinated Debt exists, the Borrower will not, and will not
permit ALOSKI or any of their respective Subsidiaries to, amend, modify, or waive any of its rights
or obligations under or any terms or provisions of any Subordinated Debt or any document
evidencing, governing or otherwise relating to any Subordinated Debt.

     SECTION 8.13 Preferred Equity Interests. The Borrower will not, and will not permit
ALOSKI or any of their respective Subsidiaries to, issue any preferred stock or other preferred
Equity Interests.

     SECTION 8.14 Synthetic Repurchases. The Borrower will not, and will not permit ALOSKI
or any of their respective Subsidiaries to, enter into, or be a party to, or make any payment
under, any Synthetic Purchase Agreement.

ARTICLE IX

Financial Covenants

     Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder shall have been paid in full, the Borrower covenants and
agrees with the Administrative Agent and the Lenders that:

     SECTION 9.01 Fixed Charge Coverage Ratio. The Borrower will as of the end of each of
Borrower’s fiscal years maintain or cause to be maintained a Fixed Charge Coverage Ratio of not
less than 1.25 to 1.00; provided, however, that if Borrower fails to satisfy this requirement as of
the end of any fiscal year, such failure shall not be an Event of Default if Alon USA shall have
maintained a Fixed Charge Coverage Ratio of not less than 1.25 to 1.00 as of the end of same fiscal
year.

Page 50

 

ARTICLE X

Events of Default

     SECTION 10.01 Default. If any of the following Events of Default shall occur:

	 	(a)	 	the Borrower shall fail to pay any principal of any Loan when and as the same
shall become due and payable, whether at the due date thereof or at a date fixed for
prepayment thereof or otherwise, and such failure shall continue for three (3) days;
	 
	 	(b)	 	the Borrower shall fail to pay any interest on any Loan or any fee or any other
amount (other than an amount referred to in clause (a) of this Section) payable under
this Agreement, when and as the same shall become due and payable, and such failure
shall continue for three (3) days;
	 
	 	(c)	 	any representation or warranty made or deemed made by or on behalf of the
Borrower, ALOSKI or any of their respective Subsidiaries in or in connection with this
Agreement or any other Loan Document or any amendment or modification hereof or thereof
or waiver hereunder or thereunder, or in any report,
certificate, financial statement or other document furnished pursuant to or in
connection with this Agreement or any other Loan Document or any amendment or
modification hereof or thereof or waiver hereunder or thereunder, shall prove to
have been materially incorrect when made or deemed made;
	 
	 	(d)	 	the Borrower shall fail to observe or perform any covenant, condition or
agreement contained in this Agreement or any other Loan Document and, only in respect
of the covenants in Sections 7.03 through 7.14 of this Agreement, such failure shall
continue unremedied for ten days;
	 
	 	(e)	 	the Borrower, ALOSKI or any of their respective Subsidiaries shall fail to make
any payment (whether of principal or interest and regardless of amount) in respect of
any Material Indebtedness, when and as the same shall become due and payable, and such
failure is not waiver and continues beyond any applicable cure period;
	 
	 	(f)	 	any event or condition occurs that results in any Material Indebtedness
becoming due prior to its scheduled maturity or that enables or permits (with or
without the giving of notice, the lapse of time or both) the holder or holders of any
Material Indebtedness or any trustee or agent on its or their behalf to cause any
Material Indebtedness to become due, or to require the prepayment, repurchase,
redemption or defeasance thereof, prior to its scheduled maturity; and such occurrence
is not waived and continues beyond any applicable grace period; provided that
this clause (f) shall not apply to secured Indebtedness that becomes due as a result of
the voluntary sale or transfer of the property or assets securing such Indebtedness
provided that such sale or transfer is otherwise permitted by this Agreement;

Page 51

 

	 	(g)	 	the Borrower, ALOSKI, or any of their respective Subsidiaries, or any Guarantor
(other than Alon USA and Alon Interests) shall fail to observe or perform any covenant,
condition or agreement in respect of any Subordinated Debt, or any default or event of
default shall occur under any document or agreement evidencing or relating to any such
Subordinated Debt;
	 
	 	(h)	 	an involuntary proceeding shall be commenced or an involuntary petition shall
be filed seeking (i) liquidation, reorganization or other relief in respect of the
Borrower, ALOSKI or any of their respective Subsidiaries or any of their respective
debts, or of a substantial part of any of their respective assets, under any Federal,
state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter
in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Borrower, ALOSKI or any of their respective
Subsidiaries or for a substantial part of any of their respective assets, and, in any
such case, such proceeding or petition shall continue undismissed for 60 days or an
order or decree approving or ordering any of the foregoing shall be entered;
	 
	 	(i)	 	the Borrower, ALOSKI or any of their respective Subsidiaries shall (i)
voluntarily commence any proceeding or file any petition seeking liquidation,
reorganization or other relief under any Federal, state or foreign bankruptcy,
insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the
institution of, or fail to contest in a timely and appropriate manner, any proceeding
or petition described in clause (g) of this Section, (iii) apply for or consent to the
appointment of a receiver, trustee, custodian, sequestrator, conservator or similar
official for the Borrower, ALOSKI or any of their respective Subsidiaries or for a
substantial part of its assets, (iv) file an answer admitting the material allegations
of a petition filed against it in any such proceeding, (v) make a general assignment
for the benefit of creditors or (vi) take any action for the purpose of effecting any
of the foregoing;
	 
	 	(j)	 	the Borrower, ALOSKI or any of their respective Subsidiaries shall become
unable, admit in writing its inability or fail generally to pay its debts as they
become due;
	 
	 	(k)	 	one or more judgments for the payment of money in an aggregate amount in excess
of $1,000,000 (net of judgment amounts to the extent covered by insurance) shall be
rendered against the Borrower, ALOSKI, any of their respective Subsidiaries or any
combination thereof and the same shall remain undischarged for a period of time in
excess of the period provided by applicable law for the filing of an appeal of such
judgment or judgments or 30 consecutive days, whichever is shorter, during which
execution shall not be effectively stayed, or any action shall be legally taken by a
judgment creditor to attach or levy upon any assets of the Borrower, ALOSKI or any of
their respective Subsidiaries to enforce any such judgment;

Page 52

 

	 	(l)	 	an ERISA Event shall have occurred that, in the opinion of the Required
Lenders, when taken together with all other ERISA Events that have occurred, could
reasonably be expected to result in liability of the Borrower, ALOSKI and/or any of
their respective Subsidiaries in an aggregate amount exceeding $1,000,000;
	 
	 	(m)	 	a Change in Control shall occur;
	 
	 	(n)	 	a Material Adverse Effect shall occur;
	 
	 	(o)	 	this Agreement or any other Loan Document shall cease to be in full force and
effect or shall be declared null and void or the validity or enforceability thereof
shall be contested or challenged by the Borrower, ALOSKI or any of their respective
Subsidiaries or any of their respective shareholders, or the Borrower or any Guarantor
shall deny that it has any further liability or obligation under any of the Loan
Documents, or any Lien created by the Loan Documents shall for any reason cease to be a
valid, first priority perfected security interest in and Lien upon any of the
Collateral purported to be covered thereby, subject to any Liens permitted under
Section 8.02 of this Agreement and except to the extent that any such loss of
perfection or priority results from the failure of the Agent to maintain
possession of certificates representing securities pledged under the Security
Agreement;
	 
	 	(p)	 	$5,000,000 or more of any properties, revenues and/or assets of Borrower,
ALOSKI or any of their respective Subsidiaries shall become subject to an order of
forfeiture, seizure or divestiture and the same shall not have been discharged within
30 days from the date of entry thereof; or
	 
	 	(q)	 	the Borrower, ALOSKI, any of their respective Subsidiaries or any Guarantor
shall make any payment on account of any Subordinated Debt, except (i) to the extent
such payment is permitted by the terms of the subordination provisions applicable to
such Subordinated Debt, or (ii) no Event of Default exists and such payment is made on
an intercompany loan between any Guarantor and Borrower.

then, and in every such event (other than an event with respect to the Borrower described in clause
(h) or (i) of this Section), and at any time thereafter during the continuance of such event, the
Administrative Agent may, and at the request of the Required Lenders shall, by notice to the
Borrower, take either or both of the following actions, at the same or different times: (i)
terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii)
declare the Loans then outstanding to be due and payable in whole (or in part, in which case any
principal not so declared to be due and payable may thereafter be declared to be due and payable),
and thereupon the principal of the Loans so declared to be due and payable, together with accrued
interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall become
due and payable immediately, without presentment, demand, protest or other notice of any kind, all
of which are hereby waived by the Borrower; and in case of any event with respect to the Borrower
described in clause (h) or (i) of this Section, the Commitments shall automatically terminate and
the principal of the Loans then outstanding, together with accrued interest thereon and all fees
and other obligations of the Borrower accrued

Page 53

 

hereunder, shall automatically become due and
payable, without notice, demand, presentment, notice of dishonor, notice of acceleration, notice of
intent to accelerate, notice of intent to demand, protest, or other formalities of any kind, all of
which are hereby waived by the Borrower. In addition to the rights and remedies as set forth
above, Administrative Agent may also require that Borrower and all Guarantors (other than Alon
Interest and Alon USA) grant for the benefit of Administrative Agent and all Lenders (pursuant to a
deed of trust in form and content satisfactory to Adminstrative Agent in its sole judgment), a Lien
on all of the real estate interests of Borrower and all Guarantors (other than Alon Interest and
Alon USA) to secure payment and performance of the Obligations. If any Event of Default shall occur
and be continuing, the Administrative Agent may exercise all rights and remedies available to it in
law or in equity, under the Loan Documents, or otherwise, including, without limitation, the right
to foreclose or otherwise enforce any Lien granted to the Administrative Agent for the benefit of
itself and the Lenders to secure payment and performance of the Obligations.

     SECTION 10.02 Performance by the Administrative Agent. If the Borrower shall fail to
perform any covenant or agreement contained in any of the Loan Documents, the Administrative Agent
may perform or attempt to perform such covenant or agreement on behalf of the Borrower. In such
event, the Borrower shall, at the request of the Administrative Agent, promptly pay any amount expended
by the Administrative Agent in connection with such performance or attempted performance to the
Administrative Agent, together with interest thereon at the Maximum Rate from and including the
date of such expenditure to but excluding the date such expenditure is paid in full.
Notwithstanding the foregoing, it is expressly agreed that neither the Administrative Agent nor any
Lender shall not have any liability or responsibility for the performance of any obligation of the
Borrower under this Agreement or any other Loan Document.

ARTICLE XI

The Administrative Agent

     Each of the Lenders hereby irrevocably appoints the Administrative Agent as its agent and
authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers
as are delegated to the Administrative Agent by the terms of the Loan Documents, together with such
actions and powers as are incidental thereto.

     The bank serving as the Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with the Borrower, ALOSKI or any of their respective
Subsidiaries or other Affiliate thereof as if it were not the Administrative Agent hereunder.

     The Administrative Agent shall not have any duties or obligations except those expressly set
forth herein. Without limiting the generality of the foregoing, (a) the Administrative Agent shall
not be subject to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any

Page 54

 

discretionary action or exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby that the Administrative Agent is required to exercise in writing by
the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under
the circumstances as provided in Section 12.02), and (c) except as expressly set forth herein, the
Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure
to disclose, any information relating to the Borrower, ALOSKI or any of their respective
Subsidiaries that is communicated to or obtained by the bank serving as Administrative Agent or any
of its Affiliates in any capacity. The Administrative Agent shall not be liable for any action
taken or not taken by it with the consent or at the request of the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary under the circumstances as provided in
Section 12.02) or in the absence of its own gross negligence or willful misconduct. The
Administrative Agent shall be deemed not to have knowledge of any Default unless and until written
notice thereof is given to the Administrative Agent by the Borrower or a Lender, and the
Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i)
any statement, warranty or representation made in or in connection with any Loan Document, (ii) the
contents of any certificate, report or other document delivered hereunder or in connection
herewith, (iii) the performance or observance of any of the covenants, agreements or other terms or
conditions set forth in any Loan Document,
(iv) the validity, enforceability, effectiveness or genuineness of any Loan Document or any
other agreement, instrument or document, or (v) the satisfaction of any condition set forth in
Article VI or elsewhere in any Loan Document, other than to confirm receipt of items expressly
required to be delivered to the Administrative Agent.

     The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other
writing believed by it to be genuine and to have been signed or sent by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any liability for relying
thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the
Borrower), independent accountants and other experts selected by it, and shall not be liable for
any action taken or not taken by it in accordance with the advice of any such counsel, accountants
or experts.

     The Administrative Agent may perform any and all its duties and exercise its rights and powers
by or through any one or more subagents appointed by the Administrative Agent. The Administrative
Agent and any such subagent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the preceding paragraphs
shall apply to any such subagent and to the Related Parties of the Administrative Agent and any
such subagent, and shall apply to their respective activities in connection with the syndication of
the credit facilities provided for herein as well as activities as Administrative Agent.

     Subject to the appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying the Lenders and the
Borrower. Upon any such resignation, the Required Lenders shall have the right, with the consent
of Borrower (which consent shall not be unreasonably withheld, and shall

Page 55

 

not be required if any
Default exists), to appoint a successor. If no successor shall have been so appointed by the
Required Lenders and shall have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may,
after consulting with the Lenders appoint a successor Administrative Agent which shall be a bank
with an office in Dallas, Texas, or an Affiliate of any such bank. Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and
become vested with all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations
hereunder. The fees payable by the Borrower to a successor Administrative Agent shall be the same
as those payable to its predecessor unless otherwise agreed between the Borrower and such
successor. After the Administrative Agent’s resignation hereunder, the provisions of this Article
and Section 12.03 shall continue in effect for the benefit of such retiring Administrative Agent,
its subagents and their respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while it was acting as Administrative Agent.

     Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it
has deemed appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it shall
from time to time deem appropriate, continue to make its own decisions in taking or not taking
action under or based upon this Agreement, any related agreement or any document furnished
hereunder or thereunder.

ARTICLE XII

Miscellaneous

     SECTION 12.01 Notices. Except in the case of notices and other communications
expressly permitted to be given by telephone, all notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by telecopy, as follows:

     (a) if to the Borrower, to it at:

413 A North Grant

Odessa, Texas 79761

Attention of David Erlich

Telecopy No. (432) 333-4535

With a copy to:

7616 LBJ Frwy

Suite 300

Dallas, Texas 75251

Attn: Michael Oster

Page 56

 

Telecopy No. (972) 367-3724

     (b) if to the Administrative Agent and for any Borrowing Requests, to:

Wachovia Bank, National Association

5080 Spectrum Drive

Suite 500 East

Addison, Texas 75001

Attention of Clint Bryant

(Telecopy No. (972) 419-3136

     ; and

	 	(c)	 	if to any other Lender, to it at its address (or telecopy number) set forth in
its Administrative Questionnaire.

Any party hereto may change its address or telecopy number for notices and other communications
hereunder by notice to the other parties hereto. All notices and other communications given to any
party hereto in accordance with the provisions of this Agreement shall be deemed to have been given
on the date of receipt.

     SECTION 12.02 Waivers; Amendments.

	 	(a)	 	No failure or delay by the Administrative Agent or any Lender in exercising any
right or power hereunder or under any other Loan Document shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power, preclude any
other or further exercise thereof or the exercise of any other right or power. The
rights and remedies of the Administrative Agent and the Lenders hereunder and under the
other Loan Documents are cumulative and are not exclusive of any rights or remedies
that they would otherwise have. No waiver of any provision of any Loan Document or
consent to any departure by the Borrower, ALOSKI or any of their respective
Subsidiaries therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given. Without
limiting the generality of the foregoing, the making of a Loan shall not be construed
as a waiver of any Default, regardless of whether the Administrative Agent, any Lender
may have had notice or knowledge of such Default at the time.
	 
	 	(b)	 	Neither this Agreement nor any other Loan Document nor any provision hereof may
be waived, amended or modified except, in the case of this Agreement, pursuant to an
agreement or agreements in writing entered into by the Borrower and the Required
Lenders or by the Borrower and the Administrative Agent with the consent of the
Required Lenders or, in the case of any other Loan Document, pursuant to an agreement
or agreements in writing entered into by the

Page 57

 

	 	 	 	Administrative Agent and the other parties
thereto; provided that no such agreement shall (i) increase the Commitment of
any Lender without the written consent of such Lender, (ii) reduce the principal amount
of any Loan or reduce the rate of interest thereon, or reduce any fees payable
hereunder, without the written consent of each Lender, (iii) postpone the scheduled
date of payment of the principal amount of any Loan, or any interest thereon, or any
fees payable hereunder, or reduce the amount of, waive or excuse any such payment, or
postpone the scheduled date of expiration of any Commitment, without the written
consent of each Lender, (iv) change Section 2.13(b) or (c) in a manner that would alter
the pro rata sharing of payments required thereby, without the written consent of each
Lender, (v) reduce the Commitment of any Lender without the written consent of each
Lender, (vi) release any Guarantor without the written consent of each Lender, except
in connection with dispositions, mergers or dissolutions expressly permitted by this
Agreement, (vii) release all or any substantial part of the Collateral from the Liens
of the Loan Documents, without
the written consent of each Lender, except in connection with dispositions, mergers
or dissolutions permitted by this Agreement, or (viii) change any of the provisions
of this Section or the definition of “Required Lenders” or any other provision
hereof specifying the number or percentage of Lenders required to waive, amend or
modify any rights hereunder or make any determination or grant any consent
hereunder, without the written consent of each Lender; provided further that
no such agreement shall amend, modify or otherwise affect the rights or duties of
the Administrative Agent hereunder without the prior written consent of the
Administrative Agent.

     SECTION 12.03 Expenses; Indemnity; Damage Waiver.

	 	(a)	 	The Borrower shall pay (i) all out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates, including the fees, charges and disbursements
of counsel for the Administrative Agent, in connection with the syndication of the
credit facilities provided for herein, the preparation and administration of this
Agreement, the other Loan Documents or any amendments, modifications or waivers of the
provisions hereof or thereof (whether or not the transactions contemplated hereby or
thereby shall be consummated), (ii) all out-of-pocket expenses incurred by the
Administrative Agent and, after an Event of Default, any Lender, including the fees,
charges and disbursements of any counsel for the Administrative Agent or any Lender in
connection with the enforcement or protection of its rights in connection with this
Agreement and the other Loan Documents, including its rights under this Section, or in
connection with the Loans made hereunder, including all such out-of-pocket expenses
incurred during any workout, restructuring or negotiations in respect of such Loans,
(iv) all transfer, stamp, documentary, or other similar taxes, assessments or charges
levied by any Governmental Authority in respect of this Agreement or any of the other
Loan Documents, (v) all costs, out-of-pocket expenses, assessments and other charges
incurred in connection with any filing, registration, recording, or perfection of any
security interest or Lien contemplated by this Agreement or any

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	 		 	other Loan Document,
and (vi) all other reasonable costs and out-of-pocket expenses incurred by the
Administrative Agent in connection with this Agreement, any other Loan Document or the
Collateral, including without limitation costs, fees, expenses and other charges
incurred in connection with performing or obtaining any audit or appraisal in respect
of the Collateral or for any surveys, environmental assessments, title insurance,
filing fees, recording costs and lien searches provided for herein; provided,
however, that, unless there is an Event of Default, Administrative Agent agrees
that it will only require reimbursement under this clause (vi) for one (1) such audit
or appraisal of the Collateral per calendar year.
	 
	 	(b)	 	THE BORROWER SHALL INDEMNIFY THE ADMINISTRATIVE AGENT AND EACH LENDER, AND EACH
RELATED PARTY OF ANY OF THE FOREGOING PERSONS (EACH SUCH PERSON BEING CALLED AN
“INDEMNITEE”) AGAINST, AND HOLD EACH INDEMNITEE HARMLESS FROM, ANY AND ALL
LOSSES, CLAIMS, DAMAGES, LIABILITIES AND RELATED EXPENSES (OTHER THAN EXPENSES
ADDRESSED UNDER SECTION 12.03(a) OF THIS AGREEMENT), INCLUDING THE FEES, CHARGES AND
DISBURSEMENTS OF ANY COUNSEL FOR ANY INDEMNITEE, INCURRED BY OR ASSERTED AGAINST ANY
INDEMNITEE ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF (I) THE EXECUTION
OR DELIVERY OF THIS AGREEMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY,
THE PERFORMANCE BY THE PARTIES HERETO OF THEIR RESPECTIVE OBLIGATIONS HEREUNDER OR
THE CONSUMMATION OF THE TRANSACTIONS OR ANY OTHER TRANSACTIONS CONTEMPLATED HEREBY,
(II) ANY LOAN OR THE USE OF THE PROCEEDS THEREFROM, (III) ANY ACTUAL OR ALLEGED
PRESENCE OR RELEASE OF HAZARDOUS MATERIALS ON OR FROM ANY PROPERTY OWNED OR OPERATED
BY THE BORROWER, ALOSKI OR ANY OF THEIR RESPECTIVE SUBSIDIARIES, OR ANY
ENVIRONMENTAL LIABILITY RELATED IN ANY WAY TO THE BORROWER, ALOSKI OR ANY OF THEIR
RESPECTIVE SUBSIDIARIES, OR (IV) ANY ACTUAL OR PROSPECTIVE CLAIM, LITIGATION,
INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE FOREGOING, WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY AND REGARDLESS OF WHETHER ANY INDEMNITEE IS A
PARTY THERETO; PROVIDED THAT ALTHOUGH EACH INDEMNITEE SHALL BE INDEMNIFIED
FOR SUCH LOSSES, CLAIMS, DAMAGES, LIABILITIES AND EXPENSES ARISING FROM ITS OWN
ORDINARY NEGLIGENCE, SUCH INDEMNITY SHALL NOT, AS TO ANY INDEMNITEE, BE
AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES, LIABILITIES OR RELATED
EXPENSES ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY FINAL AND
NONAPPEALABLE JUDGMENT TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT OF SUCH INDEMNITEE.

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	 	 	 	EXPRESS INDEMNITY FOR NEGLIGENCE: 
	 
	 	 	 	PURSUANT TO THIS SECTION 12.03(b), THE BORROWER INDEMNIFIES EACH INDEMNITEE FOR
LOSSES, CLAIMS, LIABILITIES AND EXPENSES ARISING FROM ANY INDEMNITEE’S OWN ORDINARY
NEGLIGENCE.
	 
	 	(c)	 	To the extent that the Borrower fails to pay any amount required to be paid by
it to the Administrative Agent under paragraph (a) or (b) of this Section, each Lender
severally agrees to pay to the Administrative Agent such Lender’s Applicable Percentage
(determined as of the time that the applicable unreimbursed expense or indemnity
payment is sought) of such unpaid amount; provided that the unreimbursed
expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted
against the Administrative Agent in its capacity as such.
	 
	 	(d)	 	To the extent permitted by applicable law, the Borrower shall not assert, and
hereby waives, any claim against any Indemnitee, on any theory of liability, for
special, indirect, consequential or punitive damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of, this Agreement or any
agreement or instrument contemplated hereby, the Transactions, any Loan or the use of
the proceeds thereof.
	 
	 	(e)	 	All amounts due under this Section shall be payable upon written demand
therefor.

     SECTION 12.04 Successors and Assigns.

	 	(a)	 	The provisions of this Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns permitted hereby,
except that the Borrower may not assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender (and any
attempted assignment or transfer by the Borrower without such consent shall be null and
void) and (ii) no Lender may assign or otherwise transfer its rights or obligations
hereunder except in accordance with this Section. Nothing in this Agreement, expressed
or implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby, Participants (to the
extent provided in paragraph (c) of this Section) and, to the extent expressly
contemplated hereby, the Related Parties of each of the Administrative Agent and the
Lenders) any legal or equitable right, remedy or claim under or by reason of this
Agreement.
	 
	 	(b)	 	(i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender
may assign to one or more assignees all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Commitment and the Loans at the
time owing to it) with the prior written consent (such consent not to be unreasonably
withheld) of:

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	 	(A)	 	the Borrower, provided that no consent
of the Borrower shall be required for an assignment to a Lender, an
Affiliate of a Lender, an Approved Fund or, if a Default has occurred
and is continuing, any other assignee; and
	 
	 	(B)	 	the Administrative Agent, provided that
no consent of the Administrative Agent shall be required for an
assignment of all or any portion of a Term Loan to a Lender, an
Affiliate of a Lender or an Approved Fund.

	 	(ii)	 	Assignments shall be subject to the following additional
conditions:

	 	(A)	 	except in the case of an assignment to a Lender
or an Affiliate of a Lender or an assignment of the entire remaining
amount of the assigning Lender’s Commitment or Loans of any Class, the
amount of the Commitment or Loans of the assigning Lender subject to
each such assignment (determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $5,000,000 unless each of
the Borrower and the Administrative Agent otherwise consent,
provided that no such consent of the Borrower shall be required
if a Default has occurred and is continuing;
	 
	 	(B)	 	each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights
and obligations under this Agreement, provided that this clause
shall not be construed to prohibit the assignment of a proportionate
part of all the assigning Lender’s rights and obligations in respect of
one Class of Commitments or Loans;
	 
	 	(C)	 	the parties to each assignment shall execute
and deliver to the Administrative Agent an Assignment and Assumption,
together with a processing and recordation fee of $3,500; and
	 
	 	(D)	 	the assignee, if it shall not be a Lender,
shall deliver to the Administrative Agent an Administrative
Questionnaire.

For the purposes of this Section 12.04(b), the term “Approved Fund” has the
following means:

“Approved Fund” means any Person (other than a natural person) that is
engaged in making, purchasing, holding or investing in bank loans and similar
extensions of credit in the ordinary course of its business and that is administered
or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an
Affiliate of an entity that administers or manages a Lender.

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	 	(iii)	 	Subject to acceptance and recording thereof pursuant to
paragraph (b)(iv) of this Section, from and after the effective date specified
in each Assignment and Assumption the assignee thereunder shall be a party
hereto and, to the extent of the interest assigned by such Assignment and
Assumption, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Assumption, be released from its obligations
under this Agreement (and, in the case of an Assignment and Assumption covering
all of the assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a party hereto but shall continue to be entitled to
the benefits of
Sections 2.12, 3.01, 3.05 and 12.03). Any assignment or transfer by a
Lender of rights or obligations under this Agreement that does not comply
with this paragraph shall be treated for purposes of this Agreement as a
sale by such Lender of a participation in such rights and obligations in
accordance with paragraph (c) of this Section.
	 
	 	(iv)	 	The Administrative Agent, acting for this purpose as an agent
of the Borrower, shall maintain at one of its offices a copy of each Assignment
and Assumption delivered to it and a register for the recordation of the names
and addresses of the Lenders, and the Commitment of, and principal amount of
the Loans owing to, each Lender pursuant to the terms hereof from time to time
(the “Register”). The entries in the Register shall be conclusive, and
the Borrower, the Administrative Agent and the Lenders may treat each Person
whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Borrower and
any Lender, at any time and from time to time upon prior notice.
	 
	 	(v)	 	Upon its receipt of a duly completed Assignment and Assumption
executed by an assigning Lender and an assignee, the assignee’s completed
Administrative Questionnaire (unless the assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b) of
this Section and any written consent to such assignment required by paragraph
(b) of this Section, the Administrative Agent shall accept such Assignment and
Assumption and record the information contained therein in the Register. No
assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph. Each assigning Lender
shall surrender any Note subject to such assignment, and the Borrower shall
execute and deliver to the Administrative Agent in exchange for the surrendered
Notes a new Note payable to the order of the assignee in an amount equal to the
outstanding Term Loans assigned to such assignee pursuant to such Assignment
and Assumption and, if the assigning Lender has retained any Term Loans, a new
Term Note in an amount equal to the Term Loans 

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	 	 	 	retained by it hereunder. Such
new Notes shall be in an aggregate face amount of the surrendered Note, shall
be dated the effective date of such Assignment and Assumption, and shall
otherwise be in substantially the form of Exhibit “A” hereto and shall each
constitute a “Note” for purposes of the Loan Documents.

	 	(c)	 	(i) Any Lender may, without the consent of the Borrower, the Administrative
Agent, sell participations to one or more banks or other entities (a
“Participant”) in all or a portion of such Lender’s rights and obligations
under this Agreement (including all or a portion of its Commitment and the Loans owing
to it); provided that (A) such Lender’s obligations under this Agreement shall
remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) the Borrower, the Administrative Agent and
the other Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement. Any
agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce the Loan Documents
and to approve any amendment, modification or waiver of any provision of the Loan
Documents; provided that such agreement or instrument may provide that such
Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver described in the first proviso to Section 12.02(b) that
affects such Participant. Subject to paragraph (c)(ii) of this Section, the
Borrower agrees that each Participant shall be entitled to the benefits of Sections
2.12, 3.01 and 3.05 to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to paragraph (b) of this Section. To the extent
permitted by law, each Participant also shall be entitled to the benefits of Section
12.08 as though it were a Lender, provided such Participant agrees to be subject to
Section 2.13(c) as though it were a Lender.
	 
	 	 	 	(ii) A Participant shall not be entitled to receive any greater payment under Section
2.12 or 3.01 than the applicable Lender would have been entitled to receive with
respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrower’s prior written consent.
A Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of Section 2.12 unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the benefit
of the Borrower, to comply with Section 2.12(e) as though it were a Lender.
	 
	 	(d)	 	Any Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve Bank, and
this Section shall not apply to any such pledge or assignment of a security interest;
provided that no such pledge or assignment of a security interest

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	 	 	 	shall release
a Lender from any of its obligations hereunder or substitute any such pledgee or
assignee for such Lender as a party hereto.

     SECTION 12.05 Survival. All covenants, agreements, representations and warranties
made by the Borrower, ALOSKI and any of their respective Subsidiaries in the Loan Documents and in
the certificates or other instruments delivered in connection with or pursuant to this Agreement
or any other Loan Document shall be considered to have been relied upon by the other parties hereto
and shall survive the execution and delivery of the Loan Documents and the making of any Loans,
regardless of any investigation made by any such other party or on its behalf and notwithstanding
that the Administrative Agent or any Lender may have had notice or knowledge of any Default or
incorrect representation or warranty at the time any credit is extended hereunder, and shall
continue in full force and effect as long as the principal of or any accrued interest on any
Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid and so
long as the Commitments have not expired or terminated. The provisions of Sections 2.12, 3.01,
3.05 and 12.03 and Article XI shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the Loans and the
Commitments or the termination of this Agreement or any provision hereof.

     SECTION 12.06 Counterparts; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
Except as provided in Section 6.01, this Agreement shall become effective when it shall have been
executed by the Administrative Agent and when the Administrative Agent shall have received
counterparts hereof which, when taken together, bear the signatures of each of the other parties
hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns. Delivery of an executed counterpart of a signature page
of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart of
this Agreement.

     SECTION 12.07 Severability. Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

     SECTION 12.08 Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time
to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general
or special, time or demand, provisional or final) at any time held and other obligations at any
time owing by such Lender or Affiliate to or for the credit or the account of the Borrower against
any and all of the Obligations, irrespective of whether or not any demand shall have been made
under this Agreement and although such Obligations may be unmatured. The rights of each Lender
under this Section are in addition to other rights and remedies (including other rights of setoff)
which such Lender may have.

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     SECTION 12.09 GOVERNING LAW; VENUE; SERVICE OF PROCESS. THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND THE APPLICABLE LAWS
OF THE UNITED STATES OF AMERICA. THIS AGREEMENT HAS BEEN ENTERED INTO IN DALLAS COUNTY, TEXAS, AND
IT SHALL BE PERFORMABLE FOR ALL PURPOSES IN DALLAS COUNTY, TEXAS. ANY ACTION OR PROCEEDING AGAINST
THE BORROWER UNDER OR IN CONNECTION WITH ANY OF THE LOAN DOCUMENTS MAY BE BROUGHT IN ANY STATE OR
FEDERAL COURT IN DALLAS COUNTY, TEXAS. THE BORROWER HEREBY IRREVOCABLY (A) SUBMITS TO THE
NONEXCLUSIVE JURISDICTION OF SUCH COURTS, AND (B) WAIVES ANY
OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING
BROUGHT IN ANY SUCH COURT OR THAT ANY SUCH COURT IS AN INCONVENIENT FORUM. THE BORROWER AGREES
THAT SERVICE OF PROCESS UPON IT MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT
REQUESTED, AT ITS ADDRESS SPECIFIED OR DETERMINED IN ACCORDANCE WITH THE PROVISIONS OF SECTION
12.01. NOTHING HEREIN OR IN ANY OF THE OTHER LOAN DOCUMENTS SHALL AFFECT THE RIGHT OF THE
ADMINISTRATIVE AGENT OR ANY LENDER TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL
LIMIT THE RIGHT OF THE ADMINISTRATIVE AGENT OR ANY LENDER TO BRING ANY ACTION OR PROCEEDING AGAINST
THE BORROWER OR WITH RESPECT TO ANY OF ITS RESPECTIVE PROPERTY IN COURTS IN OTHER JURISDICTIONS.
ANY ACTION OR PROCEEDING BY THE BORROWER AGAINST THE ADMINISTRATIVE AGENT OR ANY LENDER SHALL BE
BROUGHT ONLY IN A COURT LOCATED IN DALLAS COUNTY, TEXAS.

     SECTION 12.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

     SECTION 12.11 Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.

     SECTION 12.12 Confidentiality. Each of the Administrative Agent and the Lenders
agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ directors,
officers,

Page 65

 

employees and agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information confidential), (b) to the extent
requested by any regulatory authority, (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement,
(e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding
relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or
thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this Section, to (i) any actual or
prospective assignee of or Participant in any of its rights or obligations under this Agreement or
(ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction
relating to the Borrower and its obligations, (g) with the consent of the Borrower or (h) to the
extent such Information (i) becomes publicly available other than as a result of a breach of this
Section or (ii) becomes available to the Administrative Agent or any Lender on a nonconfidential
basis from a source other than the Borrower. For the purposes of this Section,
“Information” means all information received from the Borrower relating to the Borrower or
its business, other than any such information that is available to the Administrative Agent or any
Lender on a nonconfidential basis prior to disclosure by the Borrower. Any Person required to
maintain the confidentiality of Information as provided in this Section shall be considered to have
complied with its obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to its own
confidential information.

     SECTION 12.13 Maximum Interest Rate. No provision of this Agreement or of any other
Loan Document shall require the payment or the collection of interest in excess of the maximum
amount permitted by applicable law. If any excess of interest in such respect is hereby provided
for, or shall be adjudicated to be so provided, in any Loan Document or otherwise in connection
with this loan transaction, the provisions of this Section shall govern and prevail and neither the
Borrower nor the sureties, guarantors, successors, or assigns of the Borrower shall be obligated to
pay the excess amount of such interest or any other excess sum paid for the use, forbearance, or
detention of sums loaned pursuant hereto. In the event any Lender ever receives, collects, or
applies as interest any such sum, such amount which would be in excess of the maximum amount
permitted by applicable law shall be applied as a payment and reduction of the principal of the
indebtedness evidenced by the Notes; and, if the principal of the Notes has been paid in full, any
remaining excess shall forthwith be paid to the Borrower. In determining whether or not the
interest paid or payable exceeds the Maximum Rate, the Borrower and each Lender shall, to the
extent permitted by applicable law, (a) characterize any non-principal payment as an expense, fee,
or premium rather than as interest, (b) exclude voluntary prepayments and the effects thereof, and
(c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest
throughout the entire contemplated term of the indebtedness evidenced by the Notes so that interest
for the entire term does not exceed the Maximum Rate.

     SECTION 12.14 Non-Application of Chapter 346 of Texas Finance Code. The provisions of
Chapter 346 of the Texas Finance Code are specifically declared by the parties hereto not to be
applicable to this Agreement or any of the other Loan Documents or to the transactions contemplated
hereby.

Page 66

 

     SECTION 12.15 NO ORAL AGREEMENTS. THIS AGREEMENT, THE NOTES, ANY SEPARATE LETTER
AGREEMENTS WITH RESPECT TO FEES PAYABLE TO THE ADMINISTRATIVE AGENT, AND THE OTHER LOAN DOCUMENTS
REFERRED TO HEREIN REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO AND MAY NOT BE
CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF
THE PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES HERETO.

     SECTION 12.16 No Fiduciary Relationship. The relationship between the Borrower and
each Lender with respect to the Loan Documents and the Transactions is solely that of debtor and
creditor, and neither the Administrative Agent nor any Lender has any fiduciary or other special
relationship with the Borrower with respect to the Loan Documents and the Transactions, and no term
or condition of any of the Loan Documents shall be construed so as to deem the relationship between
the Borrower and any Lender with respect to the Loan Documents and the Transactions to be other
than that of debtor and creditor.

     SECTION 12.17 Construction. The Borrower, the Administrative Agent and each Lender
acknowledge that each of them has had the benefit of legal counsel of its own choice and has been
afforded an opportunity to review this Agreement and the other Loan Documents with its legal
counsel and that this Agreement and the other Loan Documents shall be construed as if jointly
drafted by the parties hereto.

[Remainder of this page intentionally blank. Signature pages follow.]

Page 67

 

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

	 	 	 	 	 
	 	

SOUTHWEST CONVENIENCE STORES, LLC, a Texas limited liability company

 	 
	 	By:  	/s/ Jeff Morris
 	 
	 	 	Name:  	Jeff Morris 	 
	 	 	Title:  	Chairman of the Board of Managers 	 
	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION, as a Lender and as Administrative Agent

 	 
	 	By:  	/s/ Gideon Oosthuizen
 	 
	 	 	Name:  	Gideon Oosthuizen 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	BANK LEUMI USA, a New York corporation, as a Lender

 	 
	 	By:  	/s/ Hanita Musel
 	 
	 	 	Name:  	Hanita Musel 	 
	 	 	Title:  	AT 	 
	 

Page 68

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