Document:

exv10w4

Exhibit 10.4

EXECUTION VERSION

 

SIXTH AMENDED AND RESTATED OMNIBUS AGREEMENT

among

HOLLYFRONTIER CORPORATION

HOLLY ENERGY PARTNERS, L.P.

and

CERTAIN OF THEIR RESPECTIVE SUBSIDIARIES

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	Article I Definitions
	 	 	3	 
	 
	 	 	 	 
	1.1 Definitions
	 	 	3	 
	 
	 	 	 	 
	Article II Business Opportunities
	 	 	9	 
	 
	 	 	 	 
	2.1 Restricted Businesses
	 	 	9	 
	2.2 Permitted Exceptions
	 	 	9	 
	2.3 Procedures
	 	 	10	 
	2.4 Scope of Prohibition
	 	 	12	 
	2.5 Enforcement
	 	 	12	 
	2.6 Limitation on Acquisitions of Subject Assets by Partnership Group Members
	 	 	12	 
	 
	 	 	 	 
	Article III Indemnification
	 	 	13	 
	 
	 	 	 	 
	3.1 Environmental Indemnification
	 	 	13	 
	3.2 Limitations Regarding Environmental Indemnification
	 	 	15	 
	3.3 Right of Way Indemnification
	 	 	15	 
	3.4 Additional Indemnification
	 	 	16	 
	3.5 Indemnification Procedures
	 	 	16	 
	3.6 Limitation on Indemnification Obligations
	 	 	18	 
	3.7 Exclusion from Indemnification
	 	 	18	 
	 
	 	 	 	 
	Article IV General and Administrative Expenses
	 	 	18	 
	 
	 	 	 	 
	4.1 General
	 	 	18	 
	 
	 	 	 	 
	Article V Right of First Refusal
	 	 	19	 
	5.1 Holly Right of First Refusal: Prohibition on Transfer of Refinery
Related Assets
	 	 	19	 
	5.2 Procedures
	 	 	20	 
	 
	 	 	 	 
	Article VI Holly Purchase Option
	 	 	22	 
	 
	 	 	 	 
	6.1 Option to Purchase Tulsa Transferred Assets
	 	 	22	 
	 
	 	 	 	 
	Article VII Miscellaneous
	 	 	22	 
	 
	 	 	 	 
	7.1 Choice of Law
	 	 	22	 
	7.2 Arbitration Provision
	 	 	22	 
	7.3 Notice
	 	 	23	 
	7.4 Entire Agreement
	 	 	24	 
	7.5 Termination of Article II
	 	 	24	 
	7.6 Amendment or Modification
	 	 	24	 
	7.7 Assignment
	 	 	24	 
	7.8 Additional Partnership Entities
	 	 	25	 
	7.9 Counterparts
	 	 	25	 
	7.10 Severability
	 	 	25	 
	7.11 Further Assurances
	 	 	25	 
	7.12 Rights of Limited Partners
	 	 	25	 
	7.13 Headings
	 	 	25	 
	 
	 	 	 	 
	i

 

 

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	7.14 UNEV Option Agreement
	 	 	25	 
	7.15 Limitation of Damages
	 	 	25	 

ii

 

 

SIXTH AMENDED AND RESTATED

OMNIBUS AGREEMENT

     THIS SIXTH AMENDED AND RESTATED OMNIBUS AGREEMENT (the “Agreement”) is being entered
into on November 9, 2011 to be effective as of November 1, 2011, by and among HollyFrontier
Corporation, a Delaware corporation (“Holly”), the other Holly Entities (as defined herein)
listed on the signature pages hereto, Holly Energy Partners, L.P., a Delaware limited partnership
(the “Partnership”), and the other Partnership Entities (as defined herein) listed on the
signature pages hereto, and amends and restates in its entirety the Fifth Amended and Restated
Omnibus Agreement entered into on August 31, 2011 (as amended, the “Fifth Amended Omnibus
Agreement”) among Holly, Navajo Pipeline Co., L.P., a Delaware limited partnership (“Navajo
Pipeline”), Holly Logistic Services, L.L.C., a Delaware limited liability company (“Holly
GP”), HEP Logistics Holdings, L.P., a Delaware limited partnership (the “General
Partner”), the Partnership, HEP Logistics GP, L.L.C., a Delaware limited liability company (the
“OLP GP”), and Holly Energy Partners — Operating, L.P., a Delaware limited partnership
(the “Operating Partnership”) and the other Holly Entities and Partnership Entities
signatory thereto.

RECITALS:

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

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

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

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

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

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entered into the First Amended and Restated Omnibus Agreement (the “First Amended Omnibus
Agreement”);

          WHEREAS, in connection with that certain Asset Purchase Agreement dated as of August 1, 2009,
by and between Holly Refining & Marketing — Tulsa LLC (“Holly Tulsa”) and HEP Tulsa LLC
(“HEP Tulsa”), pursuant to which Holly Tulsa transferred and conveyed to HEP Tulsa, and HEP
Tulsa acquired, the Tulsa Transferred Assets (as defined herein), the Parties amended and restated
the First Amended Omnibus Agreement and entered into the Second Amended and Restated Omnibus
Agreement (the “Second Amended Omnibus Agreement”);

          WHEREAS, in connection with (i) that certain Asset Sale and Purchase Agreement dated as of
October 19, 2009, by and among Holly Tulsa, HEP Tulsa and Sinclair Tulsa Refining Company
(“Sinclair”), pursuant to which HEP Tulsa acquired the Sinclair Transferred Assets (as
defined herein), (ii) that certain Asset Purchase Agreement dated as of December 1, 2009, by and
among Holly, Navajo Pipeline and HEP Pipeline L.L.C., pursuant to which Navajo Pipeline agreed to
transfer and convey to HEP Pipeline L.L.C., and HEP Pipeline L.L.C. agreed to acquire, the Beeson
Pipeline (as defined herein), and (iii) that certain LLC Interest Purchase Agreement by and among
Holly, Navajo Pipeline and the Operating Partnership, pursuant to which Navajo Pipeline agreed to
transfer and convey to the Operating Partnership, and the Operating Partnership agreed to acquire,
all of the limited liability company interests of Roadrunner Pipeline, L.L.C., the entity that owns
the Roadrunner Pipeline (as defined herein), the Parties amended and restated the Second Amended
Omnibus Agreement and entered into the Third Amended and Restated Omnibus Agreement (the “Third
Amended Omnibus Agreement”); and

          WHEREAS, in connection with that certain LLC Interest Purchase Agreement dated as of March 31,
2010, by and among Holly, Lea Refining Company, Holly Tulsa, HEP Refining, L.L.C. (“HEP
Refining”) and HEP Tulsa (the “March 2010 Drop Down LLC Interest Purchase Agreement”),
pursuant to which Holly, Lea Refining Company and Holly Tulsa agreed to transfer and convey to HEP
Refining and HEP Tulsa the Additional Tulsa East Assets (as defined herein) and the Additional
Lovington Assets (as defined herein), the Parties amended and restated the Third Amended Omnibus
Agreement and entered into the Fourth Amended and Restated Omnibus Agreement (the “Fourth
Amended Omnibus Agreement”).

          WHEREAS, in connection with the construction of the Tulsa Interconnecting Pipelines (as
defined herein), Holly Tulsa, HEP Tulsa and Holly Energy Storage — Tulsa LLC entered into that
certain Second Amended and Restated Pipelines, Tankage and Loading Rack Throughput Agreement (Tulsa
East), dated as of August 31, 2011, pursuant to which HEP Tulsa agreed to provide transportation
services to Holly Tulsa with respect to the Tulsa Interconnecting Pipelines (the “Tulsa
Throughput Agreement”), the Parties amended and restated the Fourth Amended Omnibus Agreement;
and

          WHEREAS, in connection with that certain LLC Interest Purchase Agreement effective as of
November 1, 2011, by and among Holly, Frontier Refining LLC (“Frontier Cheyenne”), Frontier
El Dorado Refining LLC (“Frontier El Dorado”), the Operating Partnership and the
Partnership, (the “November 2011 Frontier Drop Down LLC Interest Purchase

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Agreement”), pursuant to which Frontier Cheyenne and Frontier El Dorado agreed sell to
the Operating Partnership the entities that own the Cheyenne Assets (as defined herein) and the El
Dorado Assets (as defined herein), the Parties desire to amend and restate the Fifth Amended
Omnibus Agreement as provided herein.

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

ARTICLE I

Definitions

     1.1 Definitions.

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

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

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

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

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

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

     “Additional Tulsa East Assets” means the Transferred Tulsa East Assets as defined in
the March 2010 Drop Down LLC Interest Purchase Agreement.

     “Additional Lovington Assets” means the Transferred Lovington Assets as defined in the
March 2010 Drop Down LLC Interest Purchase Agreement.

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

     “Affiliate” is defined in the Partnership Agreement.

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

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

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

     “Assets” means all of the following assets conveyed, contributed, or otherwise
transferred, directly or indirectly (including by transfer or sale of the entity that owns such
assets), by the Holly Entities to the Partnership Entities: (i) the 2004 Product Pipelines,
Terminal and Related Assets, (ii) the 8” and 10” Lovington/Artesia Intermediate Pipelines, (iii)
the 2008 Crude Pipelines, Tanks and Related Assets, (iv) the 16” Lovington/Artesia Intermediate
Pipeline, (v) the Tulsa Transferred Assets, (vi) the Beeson Pipeline, (vii) the Roadrunner
Pipeline, (viii) the Additional Lovington Assets, (ix) the Additional Tulsa East Assets, (x) the
Sinclair Assets, (xi) the Tulsa Interconnecting Pipelines, (xii) the Cheyenne Assets, and (xiii)
the El Dorado Assets.

     “Beeson Pipeline” means the 8” crude oil pipeline extending from Beeson station to
Lovington, New Mexico, owned by HEP Pipeline, L.L.C.

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

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the Applicable Person, except in a merger or consolidation that would not constitute a Change
of Control under clause (b) above.

     “Cheyenne Assets” is defined in the November 2011 Frontier Drop Down LLC Interest
Purchase Agreement.

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

     “Claimant” is defined in Section 7.2.

     “Closing Date” means the date of the closing of the Partnership’s initial public
offering of Common Units. For purposes of Article III, Closing Date shall mean, with
respect to a group of Assets (e.g. the 8” and 10” Lovington/Artesia Intermediate Pipelines), the
effective date of the purchase of such Assets or the stock, partnership interests or membership
interests of the entity that owned such Assets, by a Partnership Entity.

     “Common Units” is defined in the Partnership Agreement.

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

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

     “Covered Environmental Losses” is defined in Section 3.1.

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

     “El Dorado Assets” is defined in the November 2011 Frontier Drop Down LLC Interest
Purchase Agreement.

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

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

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

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

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

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

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

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

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

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

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

     “Holly Entity” means any of the Holly Entities.

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

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

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

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

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

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

     “Limited Partner” is defined in the Partnership Agreement.

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     “March 2010 Drop Down LLC Interest Purchase Agreement” is defined in the recitals to
this Agreement.

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

     “November 2011 Frontier Drop Down LLC Interest Purchase Agreement” is defined in the
recitals to this Agreement.

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

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

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

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

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

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

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

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

     “Partnership Entity” means any of the Partnership Entities.

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

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

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

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

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

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

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

     “Respondent” is defined in Section 7.2.

     “Restricted Businesses” is defined in Section 2.1.

     “Retained Assets” means the pipelines, terminals and other assets and investments
owned by any of the Holly Group Members on the date of the Contribution Agreement that were not
conveyed, contributed or otherwise transferred to the Partnership Entities pursuant to the
Contribution Agreement or otherwise.

     “Roadrunner Pipeline” means 16” crude oil pipeline extending from Slaughter station in
Texas to Lovington, New Mexico owned by Roadrunner Pipeline, L.L.C.

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

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

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

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

     “Sinclair Transferred Assets” means the HEP Tulsa Assets as defined in the Asset Sale
and Purchase Agreement dated October 19, 2009 by and among Holly Tulsa, HEP Tulsa and Sinclair.

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

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

8

 

partnership) in which such Person, one or more Subsidiaries of such Person, or a combination
thereof, directly or indirectly, at the date of determination, has (i) at least a majority
ownership interest or (ii) the power to elect or direct the election of a majority of the directors
or other governing body of such Person.

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

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

     “Tulsa Interconnecting Pipelines” means the Interconnecting Pipelines as defined in
the Tulsa Throughput Agreement.

     “Tulsa Throughput Agreement” is defined in the recitals to this Agreement.

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

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

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

     “Units” is defined in the Partnership Agreement.

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

ARTICLE II

Business Opportunities

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

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

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

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

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

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

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

     2.3 Procedures.

          (a) In the event that Holly GP or a Holly Group Member becomes aware of an opportunity to
acquire Subject Assets with a fair market value (as determined in good faith by the Board of
Directors of Holly) equal to or greater than $5 million, then subject to Section 2.3(b),
then as soon as practicable, Holly GP or such Holly Group Member shall notify the General Partner
of such opportunity and deliver to the General Partner, or provide the General Partner access to,
all information prepared by or on behalf of, or material information submitted or delivered to,
Holly GP or such Holly Group Member relating to such potential transaction. As soon as practicable,
but in any event within 30 days after receipt of such notification and information, the General
Partner, on behalf of the Partnership, shall notify Holly GP or the Holly Group Member that either
(i) the General Partner, on behalf of the Partnership, has elected not to cause a Partnership Group
Member to pursue the opportunity to purchase the Subject Assets, or (ii) the General Partner, on
behalf of the Partnership, has elected to cause a Partnership Group Member to pursue the
opportunity to purchase the Subject Assets. If, at any time, the General Partner abandons such
opportunity (as evidenced in writing by the General Partner following the request of Holly GP or
the Holly Group Member), Holly GP or the Holly Group Member under this Section 2.3(a) may
pursue such opportunity. Any Subject Assets which are permitted to be acquired by Holly GP or a
Holly Group Member must be so acquired (i) within 12 months of the later to occur of (A) the date
that Holly GP or the Holly Group

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Member becomes able to pursue
such acquisition in accordance with the provisions of this Section 2.3(a), and (B) the
date upon which all required governmental approvals to consummate such acquisition have been
obtained, and (ii) on terms not materially more favorable to Holly GP or the Holly Group Member
than were offered to the Partnership. If either of these conditions are not satisfied, the
opportunity must be reoffered to the Partnership in accordance with this Section 2.3(a).

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

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

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

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

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

     2.5 Enforcement. Holly GP and the Holly Group Members agree and acknowledge that the
Partnership Group does not have an adequate remedy at law for the breach by Holly GP and the Holly
Group of the covenants and agreements set forth in this Article II, and that any breach by
Holly GP or the Holly Group of the covenants and agreements set forth in this Article II
would result in irreparable injury to the Partnership Group. Holly GP and the Holly Group Members
further agree and acknowledge that any Partnership Group Member may, in addition to the other
remedies which may be available to the Partnership Group, file a suit in equity to enjoin Holly GP
and the Holly Group from such breach, and consent to the issuance of injunctive relief under this
Agreement.

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

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acquire any
Subject Assets, then the General Partner shall first cause such Partnership Group Member to become
a party to this Agreement.

ARTICLE III

Indemnification

     3.1 Environmental Indemnification.

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

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

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

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

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

          (b) To the extent that a good faith claim by the Partnership Entities for indemnification
under Section 3.1(a)(i) or Section 3.1(a)(ii) arises from events or conditions at
the Transferred Tanks or the soil immediately underneath the Transferred Tanks or the

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Transferred Tanks’ secondary containment, and the Holly Entities refuse to provide such
indemnification, then the burden of proof shall be on the Holly Entities to demonstrate that
the events or conditions giving rise to the claim arose after the Closing Date.

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

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

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

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

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cost and expense for any environmental or Toxic
Tort pre-trial, trial, or appellate legal or litigation support work;

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

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

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

     3.3 Right of Way Indemnification. The Holly Entities shall indemnify, defend and hold
harmless the Partnership Entities from and against any losses, damages, liabilities, claims,
demands, causes of action, judgments, settlements, fines, penalties, costs, and expenses
(including, without limitation, court costs and reasonable attorney’s and expert’s fees) of any and
every kind or character, known or unknown, fixed or contingent, suffered or incurred by the
Partnership Entities to the extent arising out of (a) the failure of the applicable Partnership
Entity to be the owner of such valid and indefeasible easement rights or fee ownership interests in
and to the lands on which any pipeline or related pump station, tank farm or equipment conveyed or
contributed or otherwise Transferred (including by way of a Transfer of the ownership interest of a
Person or by operation of law) to the applicable Partnership Entity on the Closing Date is located
as of the Closing Date; (b) the failure of the applicable Partnership Entity to have the consents,
licenses and permits necessary to allow any such pipeline referred to in clause (a) of this
Section 3.3 to cross the roads, waterways, railroads and other areas upon which any such
pipeline is located as of the Closing Date; and (c) the cost of curing any condition set forth in
clause (a) or (b) above that does not allow any Asset to be operated in accordance with Prudent
Industry Practice, to the extent that the Holly Entities are notified in writing of any of the
foregoing within 10 years after the Closing Date or, solely with respect to the 2008 Crude
Pipelines, Tanks and Related Assets, 15 years after the Closing Date, as applicable.

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     3.4 Additional Indemnification.

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

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

     3.5 Indemnification Procedures.

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

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

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

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

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

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     3.6 Limitation on Indemnification Obligations.

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

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

     3.7 Exclusion from Indemnification. Notwithstanding anything in this Agreement to the
contrary, as used in Article III the definition of Assets shall not include the Tulsa
Transferred Assets, the Sinclair Transferred Assets or the Additional Tulsa East Assets, though the
parties hereto acknowledge the environmental indemnity provided among certain of the Holly Entities
and HEP Entities with respect to the Sinclair Transferred Assets and the Additional Tulsa East
Assets contained in the Tulsa Throughput Agreement.

ARTICLE IV

General and Administrative Expenses

4.1 General

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

          (b) At the end of each year, the Partnership will have the right to submit to Holly a proposal
to reduce the amount of the Administrative Fee for that year if the Partnership believes, in good
faith, that the general and administrative services performed by Holly and its

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Affiliates for the
benefit of the Partnership Group for the year in question do not justify payment of the full
Administrative Fee for that year. If the Partnership submits such a proposal to Holly, Holly
agrees that it will negotiate in good faith with the Partnership to determine if the Administrative
Fee for that year should be reduced and, if so, by how much.

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

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

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

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

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

ARTICLE V

Right of First Refusal

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

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

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

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

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

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     5.2 Procedures.

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

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

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

20

 

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

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

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

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

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

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

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

          (c) Holly and the Partnership Entities shall cooperate in good faith in obtaining all
necessary governmental and other third Person approvals, waivers and consents required for the
closing. Any such closing shall be delayed, to the extent required, until the third Business Day
following the expiration of any required waiting periods under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended; provided, however, that such delay shall not
exceed 120 days and, if governmental approvals and waiting periods shall not have been obtained or
expired, as the case may be, by such 120th day, then Holly shall be deemed to

21

 

have waived its right
of first refusal with respect to the Sale Assets described in the Disposition Notice and thereafter
neither Holly nor the Partnership shall have any further obligation under this Article V
with respect to such Sale Assets unless such Sale Assets again become subject to this Article
V pursuant to Section 5.2(d).

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

ARTICLE VI

Holly Purchase Option

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

ARTICLE VII

Miscellaneous

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

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

22

 

half of the compensation and
expenses of the third arbitrator. All arbitrators must (i) be neutral parties who have never been
officers, directors or employees of any of the Holly Entities, the Partnership Entities or any of
their affiliates and (ii) have not less than seven years experience in the petroleum transportation
industry. The hearing will be conducted in Dallas, Texas and commence within 30 days after the
selection of the third arbitrator. The Holly Entities, the Partnership Entities and the
arbitrators shall proceed diligently and in good faith in order that the award may be made as
promptly as possible. Except as provided in the Federal Arbitration Act, the decision of the
arbitrators will be binding on and non-appealable by the parties hereto. The
arbitrators shall have no right to grant or award indirect, consequential, punitive or
exemplary damages of any kind. The Arbitrable Disputes may be arbitrated in a common proceeding
along with disputes under other agreements between the Holly Entities, the Partnership Entities or
their Affiliates to the extent that the issues raised in such disputes are related. Without the
written consent of Holly, on behalf of the Holly Entities, and the Partnership, on behalf of the
Partnership Entities, no unrelated disputes or third party disputes may be joined to an arbitration
pursuant to this Agreement.

     7.3 Notice.

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

          Notices to the Holly Entities:

HollyFrontier Corporation

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attention: President

Email address: president@hollyfrontier.com

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

give proper notice, to:

HollyFrontier Corporation

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attention: General Counsel

Email address: generalcounsel@hollyfrontier.com

23

 

          Notices to the Partnership Entities:

Holly Energy Partners, L.P.

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

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attention: President

Email address: president@hollyenergy.com

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

give proper notice, to:

Holly Energy Partners, L.P.

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

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attention: General Counsel

Email address: generalcounsel@hollyenergy.com

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

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

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

     7.6 Amendment or Modification. No amendment or modification of this Agreement shall be valid
unless it is in writing and signed by the parties hereto. No waiver of any provision of this
Agreement shall be valid unless it is in writing and signed by the party against whom the waiver is
sought to be enforced. Any of the exhibits or schedules to this Agreement may be amended,
modified, revised or updated by the parties hereto if each of Holly (on behalf of the Holly
Entities) and the Partnership (on behalf of the Partnership Entities) execute an amended, modified,
revised or updated exhibit or schedule, as applicable, and attach it to this Agreement. Such
amended, modified, revised or updated exhibits or schedules shall be sequentially numbered (e.g.
Exhibit A-1, Exhibit A-2, etc.), dated and appended as an additional exhibit or schedule to this
Agreement and shall replace the prior exhibit or schedule, as applicable, in its entirety, except
as specified therein. No failure or delay in exercising any right hereunder, and no course of
conduct, shall operate as a waiver of any provision of this Agreement. No single or partial
exercise of a right hereunder shall preclude further or complete exercise of that right or any
other right hereunder.

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

24

 

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

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

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

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

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

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

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

     7.15 Limitation of Damages. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN ANY OTHER
PROVISION OF THIS AGREEMENT AND EXCEPT FOR CLAIMS MADE BY THIRD PARTIES WHICH SHALL NOT BE LIMITED
BY THIS SECTION, THE PARTIES AGREE THAT THE RECOVERY BY ANY PARTY, INCLUDING PURSUANT TO
ARTICLE III, OF ANY LIABILITIES, DAMAGES, COSTS OR OTHER EXPENSES SUFFERED OR INCURRED BY
IT (i) AS A RESULT OF ANY BREACH OR NONFULFILLMENT BY A PARTY OF ANY OF ITS COVENANTS, AGREEMENTS
OR OTHER OBLIGATIONS UNDER THIS AGREEMENT OR (ii) BY REASON OF OR ARISING OUT OF ANY OF THE EVENTS,
CONDITIONS OR OTHER

25

 

MATTERS LISTED IN SECTIONS 3.1, 3.3 OR 3.4 WHICH THE
PARTIES HAVE AGREED TO INDEMNIFY THE OTHER PARTY AGAINST, SHALL BE LIMITED TO ACTUAL DAMAGES AND
SHALL NOT INCLUDE OR APPLY TO, NOR SHALL ANY PARTY BE ENTITLED TO RECOVER, ANY INDIRECT,
CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES (INCLUDING, WITHOUT LIMITATION, ANY DAMAGES ON ACCOUNT
OF LOST PROFITS OR OPPORTUNITIES OR BUSINESS INTERRUPTION OR DIMINUTION IN VALUE) SUFFERED OR
INCURRED BY ANY PARTY; PROVIDED, HOWEVER, THAT SUCH RESTRICTION AND LIMITATION
SHALL NOT APPLY TO A PARTY’S OBLIGATION TO INDEMNIFY THE OTHER PARTY UNDER SECTIONS 3.1,
3.3 OR 3.4 HEREOF, AS APPLICABLE, (y) AS A RESULT OF A THIRD PARTY CLAIM FOR
SUCH INDIRECT, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES AGAINST SUCH INDEMNIFIED PARTY OR (z)
INDIRECT, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES THAT ARE A RESULT OF SUCH INDEMNIFYING
PARTY’S OR ITS AFFILIATES’ GROSS NEGLIGENCE OR WILLFUL MISCONDUCT (INCLUDING, WITHOUT LIMITATION,
ANY DAMAGES ON ACCOUNT OF LOST PROFITS OR OPPORTUNITIES OR BUSINESS INTERRUPTION OR DIMINUTION IN
VALUE). FOR PURPOSES OF THIS SECTION 7.15, “AFFILIATES” OF THE INDEMNIFYING PARTY SHALL NOT
INCLUDE THE PARTNERSHIP GROUP MEMBERS WHEN A HOLLY ENTITY IS THE INDEMNIFYING PARTY AND SHALL NOT
INCLUDE THE HOLLY GROUP MEMBERS WHEN THE INDEMNIFYING PARTY IS A PARTNERSHIP ENTITY.

[Remainder of Page Intentionally Left Blank.]

26

 

     IN WITNESS WHEREOF, the Parties have executed this Agreement to be effective as of November 1,
2011.

	 	 	 	 	 
	 	HOLLY ENTITIES:

HOLLYFRONTIER CORPORATION

 	 
	 	By:  	/s/ Douglas S. Aron
 	 
	 	Name:  	 	Douglas S. Aron 	 
	 	Title:  	 	Executive Vice President and Chief Operating Officer 	 
	 
	 	HOLLY REFINING & MARKETING COMPANY — WOODS CROSS LLC
(formerly Holly Refining & Marketing Company — Woods
Cross)

 	 
	 	By:  	/s/ James M. Stump
 	 
	 	Name:  	 	James M. Stump 	 
	 	Title:  	 	Senior Vice President, Refinery Operations 	 
	 
	 	NAVAJO REFINING COMPANY, L.L.C.

(formerly Navajo Refining Company, L.P.)

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

[Signature Page 1 of 6 to Sixth Amended and Restated Omnibus Agreement]

 

 

	 	 	 	 	 
	 	NAVAJO PIPELINE CO., L.P.

 	 
	 	By:  	/s/ Douglas S. Aron
 	 
	 	Name:  	 	Douglas S. Aron 	 
	 	Title:  	 	Executive Vice President and Chief Financial Officer 	 
	 
	 	HOLLY REFINING & MARKETING — TULSA LLC

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

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

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

[Signature Page 2 of 6 to Sixth Amended and Restated Omnibus Agreement]

 

 

	 	 	 	 	 	 	 	 	 	 	 

	 	 	PARTNERSHIP ENTITIES:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	HOLLY ENERGY PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	HEP Logistics Holdings, L.P.

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

Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Mark T. Cunningham	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	Mark T. Cunningham	 	 
	 	 	 	 	Title:	 	Vice President, Operations	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	HOLLY ENERGY PARTNERS — OPERATING, L.P.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Mark T. Cunningham	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Mark T. Cunningham	 	 
	 	 	Title:	 	Vice President, Operations	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	HOLLY LOGISTIC SERVICES, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Mark T. Cunningham	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Mark T. Cunningham	 	 
	 	 	Title:	 	Vice President, Operations	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	HEP LOGISTICS HOLDINGS, L.P.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Holly Logistic Services, L.L.C,

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

[Signature Page 3 of 6 to Sixth Amended and Restated Omnibus Agreement]

 

 

	 	 	 	 	 	 	 	 	 

	 	 	HEP LOGISTICS GP, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Mark T. Cunningham	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Mark T. Cunningham	 	 
	 	 	Title:	 	Vice President, Operations	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HEP MOUNTAIN HOME, L.L.C.

HEP PIPELINE GP, L.L.C.

HEP PIPELINE, L.L.C.

HEP REFINING GP, L.L.C.

HEP REFINING, L.L.C.

HEP WOODS CROSS, L.L.C.

LOVINGTON-ARTESIA, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	HOLLY ENERGY PARTNERS — OPERATING, L.P.

Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ Mark T. Cunningham
 

Mark T. Cunningham
	 	 
	 

	 	 	 	Title:
	 	Vice President, Operations	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HEP NAVAJO SOUTHERN, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	HEP Pipeline GP, L.L.C.

Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ Mark T. Cunningham
 

Mark T. Cunningham
	 	 
	 

	 	 	 	Title:
	 	Vice President, Operations	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HEP REFINING ASSETS, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	HEP Refining GP, L.L.C.

Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ Mark T. Cunningham
 

Mark T. Cunningham
	 	 
	 

	 	 	 	Title:
	 	Vice President, Operations	 	 

[Signature Page 4 of 6 to Sixth Amended and Restated Omnibus Agreement]

 

 

	 	 	 	 	 	 	 	 	 

	 	 	HEP PIPELINE ASSETS, LIMITED PARTNERSHIP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	HEP Pipeline GP, L.L.C.

Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ Mark T. Cunningham
 

Mark T. Cunningham
	 	 
	 

	 	 	 	Title:
	 	Vice President, Operations	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HEP TULSA LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Mark T. Cunningham	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Mark T. Cunningham	 	 
	 	 	Title:	 	Vice President, Operations	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ROADRUNNER PIPELINE, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Mark T. Cunningham	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Mark T. Cunningham	 	 
	 	 	Title:	 	Vice President, Operations	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HOLLY ENERGY STORAGE — TULSA LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Mark T. Cunningham	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Mark T. Cunningham	 	 
	 	 	Title:	 	Vice President, Operations	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HOLLY ENERGY STORAGE — LOVINGTON LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Mark T. Cunningham	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Mark T. Cunningham	 	 
	 	 	Title:	 	Vice President, Operations	 	 

[Signature Page 5 of 6 to Sixth Amended and Restated Omnibus Agreement]

 

 

	 	 	 	 	 
	 	CHEYENNE LOGISTICS LLC

 	 
	 	By:  	/s/ Mark T. Cunningham
 	 
	 	Name:  	 	Mark T. Cunningham 	 
	 	Title:  	 	Vice President, Operations 	 
	 
	 	EL DORADO LOGISTICS LLC

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

[Signature Page 6 of 6 to Sixth Amended and Restated Omnibus Agreement]

 

 

SCHEDULE I

Administrative Fee

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

General and Administrative Services

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

Schedule Iexv10w5

Exhibit 10.5

 

EXECUTION VERSION

LEASE AND ACCESS AGREEMENT

(Cheyenne)

BETWEEN

FRONTIER REFINING LLC,

AS LESSOR

AND

CHEYENNE LOGISTICS LLC

AS LESSEE

Effective as of November 1, 2011

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page No.	 
	ARTICLE I

	DEFINITIONS AND CONSTRUCTION

	1

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

	DEMISE OF PREMISES AND TERM

	5

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

	CONDUCT OF BUSINESS

	6

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

	ALTERATIONS, ADDITIONS AND IMPROVEMENTS

	7

	 
	 	 	 	 
	ARTICLE V

	MAINTENANCE OF PREMISES

	8

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

	TAXES, ASSESSMENTS

	9

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

i 

 

	 	 	 	 	 
	 	 	Page No.	 
	ARTICLE VII

	EMINENT DOMAIN; CASUALTY; INSURANCE

	10

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

	ASSIGNMENT AND SUBLETTING

	11

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

	DEFAULTS; REMEDIES; TERMINATION

	11

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

	INDEMNITY

	12

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

	GENERAL PROVISIONS

	14

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

ii 

 

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

iii 

 

EXHIBITS AND SCHEDULES

	 	 	 	 	 

	Exhibits
	 	 	 	 
	Exhibit A

	 	—
	 	Description of Premises
	Exhibit B

	 	—
	 	Memorandum of Lease
	 
	 	 	 	 
	Schedules
	 	 	 	 
	Schedule 1.1(b)

	 	—
	 	Matters which are not part of the Premises
	Schedule 7.4

	 	—
	 	Insurance Requirements

iv 

 

LEASE AND ACCESS AGREEMENT

(Cheyenne)

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

W I T N E S S E T H:

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

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

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

ARTICLE I

DEFINITIONS AND CONSTRUCTION

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     “Premises” means those certain tracts or parcels of land on which the Relevant Assets
are situated, such land being located in the City of Cheyenne, Laramie County, Wyoming, more

3

 

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

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

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

     “Refinery Site” means that certain tract(s) or parcel(s) of land located in the City
of Cheyenne, Laramie County, Wyoming, on which the Premises are located.

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

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

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

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

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

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

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

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

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

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

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

4

 

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

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

ARTICLE II

DEMISE OF PREMISES AND TERM

     2.1 Demise of Premises and Term.

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

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

     2.2 Access.

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

5

 

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

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

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

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

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

ARTICLE III

CONDUCT OF BUSINESS

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

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

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

6

 

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

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

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

ARTICLE IV

ALTERATIONS, ADDITIONS AND IMPROVEMENTS

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

7

 

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

ARTICLE V

MAINTENANCE OF PREMISES

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

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

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

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

8

 

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

ARTICLE VI

TAXES, ASSESSMENTS

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

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

9

 

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

ARTICLE VII

EMINENT DOMAIN; CASUALTY; INSURANCE

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

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

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

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

10

 

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

ARTICLE VIII

ASSIGNMENT AND SUBLETTING

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

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

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

ARTICLE IX

DEFAULTS; REMEDIES; TERMINATION

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

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

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

          (c) The occurrence of any Bankruptcy Event.

     9.2 Lessor’s Remedies.

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

11

 

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

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

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

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

          (b) The occurrence of a Bankruptcy Event.

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

ARTICLE X

INDEMNITY

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

12

 

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

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

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

13

 

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

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

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

ARTICLE XI

GENERAL PROVISIONS

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

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

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

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

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

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

14

 

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

Notices to Lessor:

c/o HollyFrontier Corporation

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attn: President

Email address: president@hollyfrontier.com

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

c/o HollyFrontier Corporation

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attn: General Counsel

Email address: generalcounsel@hollyfrontier.com

Notices to Lessee:

c/o Holly Energy Partners, L.P.

2828 N. Harwood, Suite 1300

Dallas, TX 75201

Attn: President

Email address: president@hollyenergy.com

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

c/o Holly Energy Partners, L.P.

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attn: General Counsel

Email address: generalcounsel@hollyenergy.com

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

15

 

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

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

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

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

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

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

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

16

 

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

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

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

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

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

17

 

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

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

[Remainder of Page Intentionally Left Blank]

18

 

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

	 	 	 	 	 

	 	LESSOR:
	 
	 	 	 	 
	 	 	FRONTIER REFINING LLC,
	 	 	a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	/s/ James M. Stump
	 

	 	 	 	 
	 

	 	Name:
	 	James M. Stump
	 

	 	Title:
	 	Senior Vice President, Refinery Operations
	 
	 	 	 	 
	 	LESSEE:
	 
	 	 	 	 
	 	 	CHEYENNE LOGISTICS LLC,
	 	 	a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mark T. Cunningham
	 

	 	 	 	 
	 

	 	Name:
	 	Mark T. Cunningham
	 

	 	Title:
	 	Vice President, Operations

[Signature Page to Lease and Access Agreement (Cheyenne)]

 

 

EXHIBIT A

See attached.

A-1

 

 

EXHIBIT B

MEMORANDUM OF LEASE

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

RECITALS

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

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

     C. Lessor has leased the Premises to Lessee pursuant to the terms of the Ground Lease.

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

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

B-1

 

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

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

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

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

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

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

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

B-2

 

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

	 	 	 	 	 	 	 	 	 

	ATTEST:	 	 	 	LESSOR:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	FRONTIER REFINING LLC,
	 	 	 	 	 	 	a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	James M. Stump
	 

	 	 	 	 	 	Title:
	 	Senior Vice President, Refinery Operations
	 
	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	LESSEE:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	CHEYENNE LOGISTICS LLC,
	 	 	 	 	 	 	a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Name:
	 	Mark T. Cunningham
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:
	 	Vice President, Operations

[Signature Page to Memorandum of Lease (Cheyenne)]

 

 

	 	 	 

	STATE OF TEXAS

	 	§
	 

	 	§
	COUNTY OF DALLAS

	 	§

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

                                                            

Notary Public, State of Texas

[Signature Page to Memorandum of Lease (Cheyenne)]

 

 

	 	 	 

	STATE OF TEXAS

	 	§
	 

	 	§
	COUNTY OF DALLAS

	 	§

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

                                                            

Notary Public, State of Texas

[Signature Page to Memorandum of Lease (Cheyenne)]

 

 

Exhibit A

Description of Premises

 

 

 

MEMORANDUM OF LEASE

 

Dated: November 1, 2011

 

MEMORANDUM OF LEASE

Between

BETWEEN

FRONTIER REFINING LLC,

AS LESSOR

AND

CHEYENNE LOGISTICS LLC

AS LESSEE

Record and return to:

HollyFrontier Corporation

2828 N. Harwood, Suite 1300

Dallas, Texas 75201

Attention: Denise C. McWatters

Telecopy: 214.871.3523

 

 

 

SCHEDULE 1.1(b)

MATTERS WHICH ARE NOT PART OF THE PREMISES

	1.	 	Relevant Assets.

	2.	 	Additional Improvements.

Schedule 1.1(b)

 

 

SCHEDULE 7.4

INSURANCE REQUIREMENTS

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

Schedule 7.4

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