Document:

exv10w4

Exhibit 10.4

EXECUTION VERSION

 

FOURTH AMENDED AND RESTATED OMNIBUS AGREEMENT

among

HOLLY CORPORATION

HOLLY ENERGY PARTNERS, L.P.

and

CERTAIN OF THEIR RESPECTIVE SUBSIDIARIES

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page
	Article I Definitions
	 	 	2	 
	1.1 Definitions
	 	 	2	 
	 
	 	 	 	 
	Article II Business Opportunities
	 	 	8	 
	2.1 Restricted Businesses
	 	 	8	 
	2.2 Permitted Exceptions
	 	 	9	 
	2.3 Procedures
	 	 	9	 
	2.4 Scope of Prohibition
	 	 	11	 
	2.5 Enforcement
	 	 	11	 
	2.6 Limitation on Acquisitions of Subject Assets
by Partnership Group Members
	 	 	12	 
	 
	 	 	 	 
	Article III Indemnification
	 	 	12	 
	3.1 Environmental Indemnification
	 	 	12	 
	3.2 Limitations Regarding Environmental Indemnification
	 	 	14	 
	3.3 Right of Way Indemnification
	 	 	14	 
	3.4 Additional Indemnification
	 	 	15	 
	3.5 Indemnification Procedures
	 	 	15	 
	3.6 Limitation on Indemnification Obligations
	 	 	17	 
	3.7 Exclusion from Indemnification
	 	 	17	 
	 
	 	 	 	 
	Article IV General and Administrative Expenses
	 	 	17	 
	4.1 General
	 	 	17	 
	 
	 	 	 	 
	Article V Right of First Refusal
	 	 	18	 
	5.1 Holly Right of First Refusal: Prohibition
on Transfer of Refinery Related Assets
	 	 	18	 
	5.2 Procedures
	 	 	19	 
	 
	 	 	 	 
	Article VI Holly Purchase Option
	 	 	21	 
	6.1 Option to Purchase Tulsa Transferred Assets
	 	 	21	 
	 
	 	 	 	 
	Article VII Miscellaneous
	 	 	21	 
	7.1 Choice of Law
	 	 	21	 
	7.2 Arbitration Provision
	 	 	21	 
	7.3 Notice.
	 	 	22	 
	7.4 Entire Agreement
	 	 	23	 
	7.5 Termination of Article II
	 	 	23	 
	7.6 Amendment or Modification
	 	 	23	 
	7.7 Assignment
	 	 	24	 
	7.8 Additional Partnership Entities
	 	 	24	 
	7.9 Counterparts
	 	 	24	 
	7.10 Severability
	 	 	24	 
	7.11 Further Assurances
	 	 	24	 
	7.12 Rights of Limited Partners
	 	 	24	 
	7.13 Headings
	 	 	24	 

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	 	 	 	Page
	7.14 UNEV Option Agreement
	 	 	24	 
	7.15 Limitation of Damages
	 	 	24	 

ii

 

FOURTH AMENDED AND RESTATED

OMNIBUS AGREEMENT

     THIS FOURTH AMENDED AND RESTATED OMNIBUS AGREEMENT is being entered into on March 31, 2010
(the “Agreement”), by and among Holly Corporation, a Delaware corporation
(“Holly”), the other Holly Entities (as defined herein) listed on the signature pages
hereto, Holly Energy Partners, L.P., a Delaware limited partnership (the “Partnership”),
and the other Partnership Entities (as defined herein) listed on the signature pages hereto, and
amends and restates in its entirety the Third Amended and Restated Omnibus Agreement entered into
on December 1, 2009 (as amended, the “Third Amended Omnibus Agreement”) among Holly, Navajo
Pipeline Co., L.P., a Delaware limited partnership (“Navajo Pipeline”), Holly Logistic
Services, L.L.C., a Delaware limited liability company (“Holly GP”), HEP Logistics
Holdings, L.P., a Delaware limited partnership (the “General Partner”), the Partnership,
HEP Logistics GP, L.L.C., a Delaware limited liability company (the “OLP GP”), and Holly
Energy Partners — Operating, L.P., a Delaware limited partnership (the “Operating
Partnership”) and the other Holly Entities and Partnership Entities signatory thereto.

R E C I T A L S:

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

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

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

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

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

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

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

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

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

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

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

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

     “Affiliate” is defined in the Partnership Agreement.

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

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

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

     “Assets” means the Sinclair Transferred Assets and all of the following assets
conveyed, contributed, or otherwise transferred by the Holly Entities to the Partnership Entities:
(i) the 2004

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

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

     “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,

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together with the additional conveyance documents and instruments contemplated or referenced
thereunder.

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

     “Covered Environmental Losses” is defined in Section 3.1.

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

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

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

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

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

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

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

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     “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.

     “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.

     “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.

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     “Partnership Entity” means any of the Partnership Entities.

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

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

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

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

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

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

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

     “Respondent” is defined in Section 7.2.

     “Restricted Businesses” is defined in Section 2.1.

     “Retained Assets” means the pipelines, terminals and other assets and investments
owned by any of the Holly Group Members on the date of the Contribution Agreement that were not
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 ROFR Acceptance Deadline” is defined in Section 5.2(a).

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

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

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

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

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

     “Units” is defined in the Partnership Agreement.

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

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

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Members shall be prohibited from engaging in or acquiring or investing in any business having
assets engaged in the following businesses (the “Restricted Businesses”): the ownership
and/or operation of crude oil pipelines or terminals, intermediate product pipelines or terminals,
refined products pipelines or terminals, truck racks or crude oil gathering systems in the
continental United States.

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

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

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

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

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

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

     2.3 Procedures.

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

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

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

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

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

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

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

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

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Holly GP
and the Holly Group from such breach, and consent to the issuance of injunctive relief under this
Agreement.

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

ARTICLE III

Indemnification

     3.1 Environmental Indemnification.

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

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

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

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

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Assets to the extent
not transferred to the Partnership Entities (the “Transferred Tanks”), except to the extent
arising out of the negligent acts or omissions or willful misconduct of a member of the Partnership
Entities.

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

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

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

               (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

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Entity is operating an Asset, to the
extent resulting from the negligent acts or omissions or willful misconduct of such Holly Entity
including, without limitation, (A) the cost and expense of any investigation, assessment,
evaluation, monitoring, containment, cleanup, repair, restoration, remediation, or other corrective
action required or necessary under Environmental Laws, (B) the cost or expense of the preparation
and implementation of any closure, remedial, corrective action, or other plans required or
necessary under Environmental Laws, and (C) the cost and expense for any environmental or Toxic
Tort pre-trial, trial, or appellate legal or litigation support work;

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

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

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

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

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Industry Practice, to the extent that the Holly Entities are notified in writing of any of the
foregoing within 10 years after the Closing Date or, solely with respect to the 2008 Crude
Pipelines, Tanks and Related Assets, 15 years after the Closing Date, as applicable.

     3.4 Additional Indemnification.

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

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

     3.5 Indemnification Procedures.

          (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,

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the selection of counsel, determination of whether to appeal any decision of any court and the settling
of any such matter or any issues relating thereto; provided, however, that no such
settlement shall be entered into without the consent of the Indemnified Party unless it includes a
full release of the Indemnified Party from such matter or issues, as the case may be.

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

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

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

     3.6 Limitation on Indemnification Obligations.

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

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

     3.7 Exclusion from Indemnification. Notwithstanding anything in this Agreement to the
contrary, as used in Article III the definition of Assets shall not include the Tulsa
Transferred Assets, 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 First Amended and Restated Pipelines, Tankage and Loading Rack Throughput
Agreement (Tulsa East) dated March 31, 2010 by and between Holly Tulsa and Holly Energy Storage —
Tulsa LLC.

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

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

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

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

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

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

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

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

ARTICLE V

Right of First Refusal

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

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

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

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

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

     5.2 Procedures.

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

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

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

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

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

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

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

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

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

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

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

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

ARTICLE VI

Holly Purchase Option

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

ARTICLE VII

Miscellaneous

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

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

21

 

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

     7.3 Notice.

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

          Notices to the Holly Entities:

Holly Corporation

100 Crescent Court, Suite 1600

Dallas, Texas 75201

Attention: President

Email address: president@hollycorp.com

22

 

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

give proper notice, to:

Holly Corporation

100 Crescent Court, Suite 1600

Dallas, Texas 75201

Attention: General Counsel

Email address: generalcounsel@hollycorp.com

          Notices to the Partnership Entities:

Holly Energy Partners, L.P.

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

100 Crescent Court, Suite 1600

Dallas, Texas 75201

Attention: Senior Vice President

Email address: SVP-HEP@hollyenergy.com

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

give proper notice, to:

Holly Energy Partners, L.P.

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

100 Crescent Court, Suite 1600

Dallas, Texas 75201

Attention: General Counsel

Email address: generalcounsel@hollycorp.com

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

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

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

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

23

 

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

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

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

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

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

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

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

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

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

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

24

 

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

[Remainder of Page Intentionally Left Blank.]

25

 

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

	 	 	 	 	 
	 	HOLLY ENTITIES:

HOLLY CORPORATION

 	 
	 	By:  	/s/ David L. Lamp
 	 
	 	 	David L. Lamp 	 
	 	 	President 	 
	 
	 	HOLLY REFINING & MARKETING
COMPANY 

— WOODS CROSS (formerly Holly Refining & Marketing Company)

 	 
	 	By:  	/s/ David L. Lamp
 	 
	 	 	David L. Lamp 	 
	 	 	President 	 
	 
	 	LOREFCO, INC.

 	 
	 	By:  	/s/ David L. Lamp
 	 
	 	 	David L. Lamp 	 
	 	 	Vice President 	 
	 
	 	NAVAJO REFINING COMPANY, L.L.C.

(formerly Navajo Refining Company, L.P.)

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

[Signature Page 1 of 5 to Fourth Amended and Restated Omnibus Agreement]

 

 

	 	 	 	 	 
	 	NAVAJO PIPELINE CO., L.P.

 	 
	 	By:  	/s/ Bruce R. Shaw
 	 
	 	 	Bruce R. Shaw 	 
	 	 	Vice President and Chief Financial Officer 	 
	 
	 	WOODS CROSS REFINING COMPANY, L.L.C.

 	 
	 	By:  	/s/ David L. Lamp
 	 
	 	 	David L. Lamp 	 
	 	 	President 	 
	 
	 	HOLLY REFINING & MARKETING

— TULSA LLC

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

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

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

	 	 	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ David G. Blair
 

David G. Blair
	 	 
	 

	 	 	 	 	 	President	 	 

[Signature Page 2 of 5 to Fourth Amended and Restated Omnibus Agreement]

 

 

	 	 	 	 	 
	 	HOLLY ENERGY PARTNERS — OPERATING, L.P.

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

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

	 	 	 	 	 	 	 	 	 
	 	 	HEP LOGISTICS HOLDINGS, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Holly Logistic Services, L.L.C,	 	 
	 	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ David G. Blair
 

David G. Blair 

President
	 	 

	 	 	 	 	 
	 	HEP LOGISTICS GP, L.L.C.

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

	 	 	 	 	 	 	 	 	 
	 	 	HEP MOUNTAIN HOME, L.L.C.	 	 
	 	 	HEP PIPELINE GP, L.L.C.	 	 
	 	 	HEP PIPELINE, L.L.C.	 	 
	 	 	HEP REFINING GP, L.L.C.	 	 
	 	 	HEP REFINING, L.L.C.	 	 
	 	 	HEP WOODS CROSS, L.L.C.	 	 
	 	 	LOVINGTON-ARTESIA, L.L.C.	 	 
	 
	 	 	By:	 	HOLLY ENERGY PARTNERS
—
OPERATING, L.P.	 	 
	 	 	 	 	Sole Member	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ David G. Blair
 

David G. Blair 

Senior Vice President
	 	 

[Signature Page 3 of 5 to Fourth Amended and Restated Omnibus Agreement]

 

 

	 	 	 	 	 	 	 	 	 
	 	 	HEP NAVAJO SOUTHERN, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	HEP Pipeline GP, L.L.C.	 	 
	 	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ David G. Blair
 

David G. Blair 

Senior Vice President
	 	 

	 	 	 	 	 	 	 	 	 
	 	 	HEP REFINING ASSETS, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	HEP Refining GP, L.L.C.	 	 
	 	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ David G. Blair
 

David G. Blair 

Senior Vice President
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HEP PIPELINE ASSETS, LIMITED PARTNERSHIP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	HEP Pipeline GP, L.L.C.	 	 
	 	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ David G. Blair
 

David G. Blair 

Senior Vice President
	 	 

	 	 	 	 	 
	 	HEP TULSA LLC

 	 
	 	By:  	/s/ David G. Blair
 	 
	 	 	David G. Blair 	 
	 	 	Senior Vice President 	 
	 
	 	ROADRUNNER PIPELINE, L.L.C.

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

[Signature Page 4 of 5 to Fourth Amended and Restated Omnibus Agreement]

 

 

	 	 	 	 	 
	 	HOLLY ENERGY STORAGE — TULSA LLC

 	 
	 	By:  	/s/ David G. Blair
 	 
	 	 	David G. Blair 	 
	 	 	President 	 
	 
	 	HOLLY ENERGY STORAGE — LOVINGTON LLC

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

[Signature Page 5 of 5 to Fourth 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

 

FIRST AMENDED AND RESTATED LEASE AND ACCESS AGREEMENT

(East Tulsa)

BETWEEN

HOLLY REFINING & MARKETING-TULSA LLC,

AS LESSOR

AND

HEP TULSA LLC

AND

HOLLY ENERGY STORAGE-TULSA LLC,

AS LESSEES

March 31, 2010

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page No.
	 

	 	ARTICLE I 	 	 	 	 
	 

	 	DEFINITIONS AND CONSTRUCTION 	 	 	 	 
	 

	 	2 	 	 	 	 
	 
	 	 	 	 	 	 
	1.1

	 	Certain Defined Terms
	 	 	2	 
	1.2

	 	References
	 	 	5	 
	1.3

	 	Headings
	 	 	5	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE II 	 	 	 	 
	 

	 	DEMISE OF PREMISES AND TERM 	 	 	 	 
	 

	 	6 	 	 	 	 
	 
	 	 	 	 	 	 
	2.1

	 	Demise of Premises and Term
	 	 	6	 
	2.2

	 	Access
	 	 	6	 
	2.3

	 	Rent
	 	 	7	 
	2.4

	 	Place of Payment
	 	 	7	 
	2.5

	 	Net Lease
	 	 	7	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE III 	 	 	 	 
	 

	 	CONDUCT OF BUSINESS 	 	 	 	 
	 

	 	7 	 	 	 	 
	 
	 	 	 	 	 	 
	3.1

	 	Use of Premises
	 	 	7	 
	3.2

	 	Waste
	 	 	7	 
	3.3

	 	Governmental Regulations
	 	 	7	 
	3.4

	 	Air Quality Permits
	 	 	8	 
	3.5

	 	Utilities
	 	 	8	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE IV 	 	 	 	 
	 

	 	ALTERATIONS, ADDITIONS AND IMPROVEMENTS 	 	 	 	 
	 

	 	8 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE V 	 	 	 	 
	 

	 	MAINTENANCE OF PREMISES 	 	 	 	 
	 

	 	9 	 	 	 	 
	 
	 	 	 	 	 	 
	5.1

	 	Maintenance by Lessee
	 	 	9	 
	5.2

	 	Operation of Premises
	 	 	9	 
	5.3

	 	Surrender of Premises
	 	 	9	 
	5.4

	 	Release of Hazardous Substances
	 	 	9	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VI 	 	 	 	 
	 

	 	TAXES, ASSESSMENTS 	 	 	 	 
	 

	 	10 	 	 	 	 
	 
	 	 	 	 	 	 
	6.1

	 	Lessee’s Obligation to Pay
	 	 	10	 
	6.2

	 	Manner of Payment
	 	 	10	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page No.
	 

	 	ARTICLE VII 	 	 	 	 
	 

	 	EMINENT DOMAIN; CASUALTY; INSURANCE 	 	 	 	 
	 

	 	11 	 	 	 	 
	 
	 	 	 	 	 	 
	7.1

	 	Total Condemnation of Premises
	 	 	11	 
	7.2

	 	Partial Condemnation
	 	 	11	 
	7.3

	 	Damages and Right to Additional Property
	 	 	11	 
	7.4

	 	Insurance
	 	 	11	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VIII 	 	 	 	 
	 

	 	ASSIGNMENT AND SUBLETTING 	 	 	 	 
	 

	 	12 	 	 	 	 
	 
	 	 	 	 	 	 
	8.1

	 	Assignment and Subletting
	 	 	12	 
	8.2

	 	Release of Lessor
	 	 	12	 
	8.3

	 	Release of Lessee
	 	 	12	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE IX 	 	 	 	 
	 

	 	DEFAULTS; REMEDIES; TERMINATION 	 	 	 	 
	 

	 	12 	 	 	 	 
	 
	 	 	 	 	 	 
	9.1

	 	Default by Lessee
	 	 	12	 
	9.2

	 	Lessor’s Remedies
	 	 	12	 
	9.3

	 	Default by Lessor
	 	 	13	 
	9.4

	 	Lessee’s Remedies
	 	 	13	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE X 	 	 	 	 
	 

	 	INDEMNITY 	 	 	 	 
	 

	 	13 	 	 	 	 
	 
	 	 	 	 	 	 
	10.1

	 	Indemnification by Lessor
	 	 	13	 
	10.2

	 	Indemnification by Lessee
	 	 	14	 
	10.3

	 	Matters Involving a Third Party
	 	 	14	 
	10.4

	 	Survival
	 	 	15	 
	10.5

	 	Ancillary Agreements
	 	 	15	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE XI 	 	 	 	 
	 

	 	GENERAL PROVISIONS 	 	 	 	 
	 

	 	15 	 	 	 	 
	 
	 	 	 	 	 	 
	11.1

	 	Estoppel Certificates
	 	 	15	 
	11.2

	 	Severability
	 	 	15	 
	11.3

	 	Time of Essence
	 	 	15	 
	11.4

	 	Captions
	 	 	15	 
	11.5

	 	Entire Agreement; Amendment
	 	 	15	 
	11.6

	 	Schedules and Exhibits
	 	 	15	 
	11.7

	 	Notices
	 	 	15	 
	11.8

	 	Waivers
	 	 	16	 
	11.9

	 	No Partnership
	 	 	17	 
	11.10

	 	No Third Party Beneficiaries
	 	 	17	 
	11.11

	 	Waiver of Landlord’s Lien
	 	 	17	 
	11.12

	 	Mutual Cooperation; Further Assurances
	 	 	17	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page No.
	11.13

	 	Recording
	 	 	17	 
	11.14

	 	Binding Effect
	 	 	17	 
	11.15

	 	Choice of Law
	 	 	17	 
	11.16

	 	Warranty of Peaceful Possession
	 	 	17	 
	11.17

	 	Force Majeure
	 	 	18	 
	11.18

	 	Survival
	 	 	18	 
	11.19

	 	AS IS, WHERE IS
	 	 	18	 
	11.20

	 	Relocation of Pipelines; Amendment
	 	 	18	 
	11.21

	 	Option
	 	 	19	 
	11.22

	 	No Novation
	 	 	19	 

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

 

FIRST AMENDED AND RESTATED LEASE AND ACCESS AGREEMENT

(East Tulsa)

     THIS FIRST AMENDED AND RESTATED LEASE AND ACCESS AGREEMENT (EAST TULSA) (this “Lease”)
is made and entered into to be effective as of 11:59 p.m. Dallas, Texas time on the 31st
day of March, 2010, between HOLLY REFINING & MARKETING-TULSA LLC, a limited liability company
organized and existing under the laws of Delaware (herein called “Lessor”), HEP TULSA LLC,
a limited liability company organized and existing under the laws of Delaware (“HEP
Tulsa”), and HOLLY ENERGY STORAGE-TULSA LLC, a limited liability company organized and existing
under the laws of Delaware (“HEP Storage-Tulsa,” and collectively with HEP Tulsa, herein
called “Lessees”). Lessor and Lessees 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 Asset Sale and Purchase Agreement, dated
October 19, 2009 (the “Group 1 Purchase Agreement”), among Lessor and HEP Tulsa, as Buyers,
and Sinclair Tulsa Refining Company, as Seller, Lessor acquired certain refining assets and other
related assets located on the Refinery Site (defined below) and HEP Tulsa acquired the Group 1
Assets (defined below);

     WHEREAS, in connection with the closing of the transactions contemplated by the Group 1
Purchase Agreement, Lessor and HEP Tulsa entered into that certain Lease and Access Agreement (East
Tulsa Refinery) dated December 1, 2009, between Lessor and HEP Tulsa (the “Original Lease and
Access Agreement”) to, among other things, lease from Lessor the real property at the Refinery
Site (defined below) underlying the Group 1 Assets (defined below);

     WHEREAS, also in connection with the closing of the transactions contemplated by the Group 1
Purchase Agreement, Lessor and HEP Tulsa entered into that certain Site Services Agreement (Tulsa
East) dated December 1, 2009 (the “Original Site Services Agreement”) to provide HEP Tulsa
with shared use of certain services, utilities, materials and facilities that are necessary to
operate and maintain the Group 1 Assets as operated and maintained prior to the execution of the
Original Site Services Agreement;

     WHEREAS, pursuant to an LLC Interest Purchase Agreement dated March 31, 2010, by and between
HEP Tulsa and HEP Refining, L.L.C., as Buyers, Lessor and Lea Refining Company, as Sellers, and
Holly Corporation (the “Group 2 Purchase Agreement”), Lessee acquired from Lessor all of
the issued and outstanding membership interests of HEP Storage-Tulsa;

     WHEREAS, HEP Storage-Tulsa is the owner of the Group 2 Assets (defined below), which, together
with the Group 1 Assets, are referred to as the “Relevant Assets”;

     WHEREAS, simultaneously herewith, in connection with the closing of the transactions
contemplated by the Group 2 Purchase Agreement, the Parties shall execute an Amended and Restated
Site Services Agreement (the “Site Services Agreement”), amending and restating the
Original Site Services Agreement in its entirety; and

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     WHEREAS, also in connection with the closing of the transactions contemplated by the Group 2
Purchase Agreement, Lessor and Lessees desire to amend and restate the Original Lease and Access
Agreement as provided herein.

     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 Lessees 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 Site Services
Agreement.

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

     “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.

     “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

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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.

     “Group 1 Assets” means the HEP Tulsa Assets, as such term is defined in the Group 1
Purchase Agreement.

     “Group 1 Purchase Agreement” shall have the meaning set forth in the Recitals.

     “Group 2 Assets” means the Transferred Tulsa East Assets, as such term is defined in
the Group 2 Purchase Agreement.

     “Group 2 Purchase Agreement” shall have the meaning set forth in the Recitals.

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

     “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.

     “HEP Storage-Tulsa” shall have the meaning ascribed to such term in the preface to
this Lease.

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

     “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.

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

     “Lessees” 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.

     “Lessees’ 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).

     “Original Lease and Access Agreement” shall have the meaning set forth in the
Recitals.

     “Original Site Services Agreement” 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 Tulsa, Tulsa County, Oklahoma, more
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 Agreements” means the Group 1 Purchase Agreement and the Group 2 Purchase
Agreement.

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     “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 Tulsa, Tulsa County, Oklahoma, on which the Premises are located.

     “Relevant Assets” shall have the meaning set forth in the Recitals.

     “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) Lessees or an Affiliate of Lessees or (c) a Person that, after the signing of this Lease
becomes a successor entity of Lessor, Lessees or any of their respective Affiliates. An employee
of Lessor or Lessees 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 First Amended and Restated Pipelines, Tankage and
Loading Rack Throughput Agreement (Tulsa East) dated as of the date hereof by and between Lessor
and Lessees.

     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
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.”

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     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 Lessees and Lessees hereby lease 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, Lessees 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 Lessees have elected to terminate this Lease.

          (b) At Lessees’ option, Lessees may terminate this Lease, by providing written notice to
Lessor on or before 180 days prior to the desired termination date if Lessees cease 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 Lessees the remaining Rent.

     2.2 Access.

          (a) Lessor hereby grants to Lessees and their respective Affiliates, agents, employees and
contractors (collectively, “Lessees’ 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
Lessees as a stand-alone enterprise, all so long as such access and use by any of Lessees’ 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”.
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

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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 Lessees’
operations on the Premises and complies with Lessees’ rules, norms and procedures governing safety
and security at the Premises.

     2.3 Rent. As rental for the Premises during the Term, Lessees agree 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 Lessees 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. Lessees 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,
Lessees 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 Lessees under
this Lease and the Ancillary Agreements including the indemnity provisions contained in the
Ancillary Agreements, each Lessee shall, at such Lessee’s sole cost and expense, at all times
comply with 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. Each Lessee shall give
prompt written notice to Lessor of such 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 any
Lessee is not complying with all applicable legal requirements (including requirements under

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Environmental Laws) with respect to the Relevant Assets and Additional Improvements, it will
provide reasonable notice to Lessees of such condition. If such 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
such Lessee, take such actions for such Lessee’s account. Within 30 days following the date Lessor
delivers to such 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 Lessees’ failure to do so, such Lessee shall reimburse Lessor all amounts paid by Lessor
on such Lessee’s behalf.

     3.4 Air Quality Permits. Notwithstanding Lessees’ obligation to maintain and operate
the Relevant Assets and Additional Improvements and comply with applicable Laws, Lessor and Lessees
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. Except as
provided in the preceding sentence, nothing in this Lease shall reduce Lessees’ 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 Lessees’ 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, Lessees 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, Lessees shall notify Lessor
in writing in advance and the parties shall negotiate in good faith any increase to the fees paid
by Lessees under the Site Services Agreement by Lessees 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 alteration, addition,
improvement or other change to the Premises, Relevant Assets or Additional Improvements (and, if
agreed by Lessees and Lessor, to the Shared Access Facilities) by Lessees 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 Lessees and shall be removed by Lessees within
one (1) year after termination of this Lease (provided that such can be removed by Lessees without
unreasonable damage or harm to the Premises) or, at Lessees’ option exercisable by notice to
Lessor, surrendered to Lessor upon the termination of this Lease. Lessees 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

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such lien is filed against the Premises, Lessees 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 Lessees. 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 Lessees under the Ancillary Agreements, including any indemnity
provisions contained in the Ancillary Agreements, Lessees shall at their 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 Lessees 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 Lessees in this
Lease and under the Ancillary Agreements, including any indemnity provisions contained in the
Ancillary Agreements, Lessees covenant and agree 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. Lessees 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. Lessees 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 any Lessee is failing to contain or remediate in compliance
with all applicable Laws (including Environmental Laws) any release arising from such Lessee’s
operation of the Relevant Assets or Additional Improvements or such Lessee’s failure to comply with
its obligations pursuant to this Lease, Lessor will provide reasonable notice to Lessees of such
failure. If such 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 Lessees, take such actions for such
Lessee’s account. Within 30 days following the date Lessor delivers to Lessees 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 any Lessee’s failure to do so,
such Lessee shall reimburse Lessor all amounts paid by Lessor on such Lessee’s behalf.

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ARTICLE VI

TAXES, ASSESSMENTS

     6.1 Lessees’ Obligation to Pay. Lessees 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 Lessees
fail to pay their 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 Lessees shall reimburse
Lessor all amounts paid by Lessor on Lessees’ behalf within 30 days following the date Lessor
delivers to Lessees evidence of such payment.

     6.2 Manner of Payment. Upon notice by Lessees to Lessor, Lessor and Lessees 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, Lessees 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 Lessees 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, Lessees 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 Lessees 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, payment, nonpayment and amount of such Taxes. Lessees 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 Lessees’
sole cost and expense, by appropriate proceedings, diligently conducted in good faith in accordance
with applicable Law. If Lessees contest such items then Lessor shall cooperate with Lessees 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

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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 Lessees’ reasonable opinion such partial taking or
condemnation renders the Premises unsuitable for the business of Lessees, then this Lease shall
terminate at Lessees’ election as of the date title vests in any public agency, provided Lessees
deliver 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 no Lessee is then in default hereunder) be used to pay for any restoration by
Lessees of the Relevant Assets, the Additional Improvements and/or the remainder of the Premises
hereof to the extent Lessees desire any of the same to be restored. Lessees 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 any Lessee in such Lessee’s own right on account of any and
all damage to the Relevant Assets, the Additional Improvements and/or such 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 such Lessee might be put in removing such 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 Lessees’ use thereof
is impacted by such Casualty Event, on the condition that Lessees take commercially reasonable
efforts to mitigate the disruption to its business caused by such Casualty Event.

     7.4 Insurance. Except as otherwise agreed by Lessor and Lessees, Lessees 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.

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

ARTICLE IX

DEFAULTS; REMEDIES; TERMINATION

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

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

          (b) The failure by a Lessee to observe or perform any of the other covenants, conditions or
provisions of this Lease to be observed or performed by such 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, such Lessee shall not be in default so long as such
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 any 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 Lessees’ right
to possession of the Premises and forthwith repossess the Premises by any lawful means in which
event Lessees 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 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, any 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

12

 

notice to such Lessee, without waiving any other right or remedy hereunder for such default,
may do or perform such act, at such Lessee’s expense, or pay such sum for and on behalf of such
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 such 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 Lessees; 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 Lessees and thereafter completes
the curing of such default within a reasonable period of time following the receipt of such written
notice from Lessees; or

          (b) The occurrence of a Bankruptcy Event.

     9.4 Lessees’ Remedies. In the event of any such default under or breach of the terms
of this Lease by Lessor, Lessees may, at Lessees’ option, at any time thereafter that such default
or breach remains uncured, after ten days prior written notice to Lessees, 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 Lessees shall be repayable on
demand, and bear interest from the date expended by Lessees until paid at the Post-Maturity Rate.
Lessees may, at Lessees’ option, deduct any such amounts so expended by Lessees from the Rent and
any other amounts owed hereunder or under any Ancillary Agreement and any such action on the part
of Lessees shall be in addition to any other remedy that may be available to Lessees 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 Lessees and their 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, 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

13

 

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 Lessees. Lessees agree 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 Lessees in this Lease, but expressly excluding any
Claims arising pursuant to Lessees’ 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
Throughput Agreement), or (b) the exercise of Lessees’ rights under Section 2.2(a);
provided, however, Lessees 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 Lessees under the indemnification provisions of this Section
10.2, Lessees 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 LESSEES 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 LESSEES WOULD BE LIABLE UNDER THIS SECTION.

     10.3 Matters Involving a Third Party. If any Third Party shall notify either Lessor
or Lessees 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 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.

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     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. Lessees 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 Lessees.

     11.2 Severability; Joint and Several Liability. 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. Lessees’ obligations and
liabilities hereunder are joint and several.

     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.

     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

15

 

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 Holly Corporation

100 Crescent Court, Suite 1600

Dallas, Texas 75201

Attn: President

Email address: president@hollycorp.com

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

giver proper notice, to:

c/o Holly Corporation

100 Crescent Court, Suite 1600

Dallas, Texas 75201

Attn: General Counsel

Email address: generalcounsel@hollycorp.com

Notices to any Lessee:

c/o Holly Energy Partners, L.P.

100 Crescent Court, Suite 1600

Dallas, TX 75201

Attn: David Blair

Email address: SVP-HEP@hollyenergy.com

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

give proper notice, to:

c/o Holly Energy Partners, L.P.

100 Crescent Court, Suite 1600

Dallas, Texas 75201

Attn: General Counsel

Email address: generalcounsel@hollycorp.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.

     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

16

 

any Lessee of any provision hereof, other than the failure of such 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 Lessees 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
Lessees, 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
Lessees’ 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 Lessees 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. Lessor and each Lessee agrees to reasonably cooperate
with the other on all matters relating to required Permits and regulatory compliance by either
Lessees or Lessor in respect of the Premises so as to ensure continued full operation of the
Premises by Lessees pursuant to the terms of this Lease.

     11.13 Recording. Upon the request of Lessor or Lessees, Lessor and Lessees 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, Lessees shall execute and deliver to Lessor an instrument, in
recordable form, evidencing the termination of this Lease and the release by Lessees of all of
Lessees’ right, title and interest in and to the Premises existing under and by virtue of this
Lease (the “Lessee Release”) and each 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
Lessees. 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.

     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 Oklahoma, excluding any conflicts-of-law rule or
principle that might require the application of laws of another jurisdiction.

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     11.16 Warranty of Peaceful Possession. Lessor covenants and warrants that Lessees,
upon paying the Rent reserved hereunder and observing and performing all of the covenants,
conditions and provisions on Lessees’ 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 any 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 Lessees 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 Lessees 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,
LESSEES HEREBY ACCEPT 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.

     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.

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     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 Lessees hereby grant such option, to
purchase the Relevant Assets at a cost equal to the fair market value thereof, as reasonably
determined by Lessor and Lessees. In the event that Lessor and Lessees 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 Lessees’ appraiser and
such choice of this third appraiser shall be final and binding on Lessor and Lessees. 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
Lessees shall cooperate to convey the Relevant Assets from Lessees 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 Amended and Restated Credit Agreement, dated as of August 27, 2007, among
Holly Energy Partners — Operating, L.P., the Banks party thereto, and Union Bank, N.A., as
Administrative Agent, as such agreement may be amended, restated, otherwise modified or refinanced
from time to time.

     11.22 No Novation. This Agreement shall be considered an amendment and restatement of
the Original Lease and Access Agreement, and the Original Lease and Access Agreement is hereby
ratified, approved and confirmed in every respect, except as amended hereby. This Agreement is not
intended to constitute a novation of the Original Lease and Access Agreement and all of the
obligations owing by the Parties under the Original Lease and Access Agreement shall continue (from
and after the date of this Agreement, as amended hereby).

[Remainder of Page Intentionally Left Blank]

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

LESSOR:

	 	 	 	 	 
	 	HOLLY REFINING &
MARKETING-TULSA LLC,
a Delaware limited liability company

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

LESSEES:

	 	 	 	 	 
	 	HEP TULSA LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ David G. Blair
 	 
	 	 	David G. Blair 	 
	 	 	Senior Vice President 	 
	 
	 	HOLLY ENERGY STORAGE-TULSA LLC

a Delaware limited liability company

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

[Signature
Page to First Amended and Restated Lease and Access Agreement (East Tulsa)]

 

EXHIBIT A

DESCRIPTION OF PREMISES

A tract of land lying in the East Half of the Northwest Quarter and the Northeast Quarter of
Section 23, Township 19 North, Range 12 East of the Indian Base and Meridian, Tulsa County, State
of Oklahoma, and being more particularly described as follows:

COMMENCING at the northeast corner of the said Northwest Quarter, said point also being the
northwest corner of the said Northeast Quarter;

THENCE South 00°58’59” East, along the common line between the Northwest Quarter and the Northeast
Quarter, a distance of 564.68 feet to the POINT OF BEGINNING;

THENCE North 88°53’33” East a distance of 13.95 feet;

THENCE South 00°50’02” East a distance of 1,507.22 feet;

THENCE South 89°42’24” West a distance of 188.15 feet;

THENCE North 00°38’14” West a distance of 291.81 feet;

THENCE South 88°54’13” West a distance of 209.06 feet;

THENCE South 01°49’49” East a distance of 268.80 feet;

THENCE South 87°29’45” West a distance of 115.41 feet;

THENCE South 00°12’20” West a distance of 266.41 feet;

THENCE South 89°05’12” West a distance of 316.77 feet;

THENCE North 01°06’24” West a distance of 282.09 feet;

THENCE continuing North 01°06’24” West a distance of 271.57 feet;

THENCE North 86°34’04” West a distance of 80.75 feet;

THENCE South 89°03’38” West a distance of 427.05 feet to a point on the west line of the East Half
of the said Northwest Quarter;

THENCE North 00°54’11” West, along said west line, a distance of 1,550.38 feet;

THENCE South 89°26’14” East a distance of 367.80 feet;

THENCE North 87°38’43” East a distance of 141.55 feet;

THENCE South 00°44’21” East a distance of 801.29 feet;

THENCE North 89°01’16” East a distance of 433.79 feet;

A-1

 

THENCE North 00°09’34” East a distance of 447.85 feet;

THENCE North 88°53’33” East a distance of 377.19 feet to the POINT OF BEGINNING.

Said tract containing 1,856,282 square feet or 42.6144 acres more or less.

A tract of land lying in the East Half of the Southwest Quarter and the Southeast Quarter of
Section 14, Township 19 North, Range 12 East of the Indian Base and Meridian, Tulsa County, State
of Oklahoma, according to the United States government survey thereof, and being more particularly
described as follows:

COMMENCING at the southeast corner of the said East Half of the Southwest Quarter, said point also
being the southwest corner of the said Southeast Quarter;

THENCE North 01°14’16” West, along the common line between the said Southeast and Southwest Quarter
a distance of 1,127.81 feet to the POINT OF BEGINNING;

THENCE South 88°43’23” West a distance of 273.63 feet;

THENCE North 01°05’02” West a distance of 787.59 feet;

THENCE North 01°30’42” West a distance of 402.41 feet;

THENCE North 87°22’40” East a distance of 209.33 feet;

THENCE South 86°32’11” East a distance of 50.14 feet;

THENCE South 57°19’41” East, passing at 17.12 feet the common line between the said Southwest
Quarter and the Southeast Quarter, and continuing for a total distance of 41.07 feet;

THENCE South 00°55’38” East a distance of 1,167.85 feet;

THENCE South 88°43’23” West a distance of 13.55 feet to the POINT OF BEGINNING.

Said tract containing 344,581 square feet or 7.9105 acres more or less.

A tract of land lying in Government Lot 6 of Section 13 and the Southeast Quarter of Section 14,
Township 19 North, Range 12 East of the Indian Base and Meridian, Tulsa County, Oklahoma, and being
more particularly described as follows:

COMMENCING at the northeast corner of the Southeast Quarter of said Section 14;

THENCE South 01°17’58” East, along the common line between said Sections 13 and 14, a distance of
1,466.75 feet to the POINT OF BEGINNING;

THENCE North 88°37’53” East a distance of 337.54 feet;

A-2

 

THENCE South 00°36’51” East a distance of 375.50 feet;

THENCE South 88°36’24” West a distance of 409.94 feet;

THENCE North 00°10’17” West a distance of 375.72 feet;

THENCE North 88°37’53” East a distance of 69.49 feet to the POINT OF BEGINNING.

Said tract of land containing 153,409 square feet or 3.5218 acres more or less.

A tract of land lying in the East Half of the Southwest Quarter of Section 14, Township 19 North,
Range 12 East of the Indian Base and Meridian, Tulsa County, Oklahoma, and being more particularly
described as follows:

COMMENCING at southeast corner of the Southwest Quarter of said Section 14;

THENCE South 89°17’34” West, along the south line of the said Southwest Quarter, a distance of
273.89 feet;

THENCE North 00°42’26” West a distance of 319.04 feet to the POINT OF BEGINNING;

THENCE South 88°42’44” West a distance of 394.78 feet;

THENCE South 88°24’34” West a distance of 382.43 feet;

THENCE North 02°48’56” West a distance of 422.64 feet;

THENCE North 01°21’23” West a distance of 787.85 feet;

THENCE North 88°04’21” East a distance of 395.99 feet;

THENCE South 01°30’14” East a distance of 795.92 feet;

THENCE North 89°05’59” East a distance of 387.07 feet;

THENCE South 01°45’27” East a distance of 414.21 feet to the POINT OF BEGINNING.

Said tract containing 640,567 square feet or 14.7054 acres more or less.

A tract of land lying in the Southeast Quarter of Section 14, Township 19 North, Range 12 East of
the Indian Base and Meridian, Tulsa County, Oklahoma, and being more particularly described as
follows:

COMMENCING at southwest corner of the Southeast Quarter of said Section 14;

THENCE North 01°14’16” West, along the west line of the said Southeast Quarter, a distance of

A-3

 

737.88 feet;

THENCE North 88°45’44” East a distance of 118.42 feet to the POINT OF BEGINNING;

THENCE North 00°59’42” West a distance of 366.36 feet;

THENCE North 88°29’12” East a distance of 120.43 feet;

THENCE South 80°02’26” East a distance of 119.54 feet;

THENCE South 73°20’45” East a distance of 75.84 feet;

THENCE South 01°58’57” East a distance of 306.59 feet;

THENCE South 83°09’10” West a distance of 151.16 feet;

THENCE South 89°04’44” West a distance of 164.96 feet to the POINT OF BEGINNING.

Said tract containing 109,842 square feet or 2.5216 acres more or less.

A tract of land lying in the Southeast Quarter of Section 14, Township 19 North, Range 12 East of
the Indian Base and Meridian, Tulsa County, Oklahoma, and being more particularly described as
follows:

COMMENCING at the northeast corner of the said Southeast Quarter;

THENCE South 01°17’57” East, along the east line of said Southeast Quarter, a distance of 712.02
feet;

THENCE South 89°41’22” West a distance of 244.09 feet;

THENCE South 85°45’23” West a distance of 225.17 feet;

THENCE South 00°55’39” East a distance of 750.57 feet;

THENCE South 88°36’18” West a distance of 405.16 feet;

THENCE South 03°01’49” East a distance of 172.35 feet;

THENCE South 01°12’31” East a distance of 149.87 feet;

THENCE South 88°25’52” West a distance of 134.78 feet;

THENCE South 01°55’23” East a distance of 206.29 feet to the POINT OF BEGINNING;

THENCE North 89°02’26” East a distance of 111.41 feet;

THENCE South 07°07’38” West a distance of 40.12 feet;

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THENCE South 02°41’42” East a distance of 52.93 feet;

THENCE South 89°19’36” West a distance of 105.80 feet;

THENCE North 01°56’12” West a distance of 92.11 feet to the POINT OF BEGINNING.

Said tract of land containing 9,850 square feet or 0.2261 acres more or less.

A tract of land lying in the Southeast Quarter of Section 14, Township 19 North, Range 12 East of
the Indian Base and Meridian, Tulsa County, Oklahoma, and being more particularly described as
follows:

COMMENCING at the northeast corner of the said Southeast Quarter;

THENCE South 01°17’57” East, along the east line of said Southeast Quarter, a distance of 712.02
feet;

THENCE South 89°41’22” West a distance of 244.09 feet;

THENCE South 85°45’23” West a distance of 225.17 feet to the POINT OF BEGINNING;

THENCE South 00°55’39” East a distance of 750.57 feet;

THENCE South 88°36’18” West a distance of 405.16 feet;

THENCE South 03°01’49” East a distance of 172.35 feet;

THENCE South 01°12’31” East a distance of 149.87 feet;

THENCE South 88°25’52” West a distance of 134.78 feet;

THENCE North 01°03’05” West a distance of 494.30 feet;

THENCE North 89°17’16” East a distance of 128.55 feet;

THENCE North 01°00’16” West a distance of 316.69 feet;

THENCE continuing North 01°00’16” West a distance of 273.01 feet;

THENCE North 88°59’37” East a distance of 392.66 feet;

THENCE South 64°59’40” East a distance of 15.02 feet to the POINT OF BEGINNING.

Said tract of land containing 372,460 square feet or 8.5505 acres more or less.

A tract of land lying in the Northeast Quarter of Section 23, Township 19 North, Range 12 East of
the Indian Base and Meridian, Tulsa County, State of Oklahoma, and being more particularly

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described as follows:

COMMENCING at the northwest corner of said Northeast Quarter;

THENCE North 89°17’34” East, along the north line of said Northeast Quarter, a distance of 366.03
feet;

THENCE South 00°42’26” East a distance of 212.66 feet to the POINT OF BEGINNING;

THENCE North 89°01’01” East a distance of 60.00 feet;

THENCE South 00°58’59” East a distance of 110.00 feet;

THENCE South 89°01’01” West a distance of 60.00 feet;

THENCE North 00°58’59” West a distance of 110.00 feet to the POINT OF BEGINNING.

Said tract containing 6,600 square feet or 0.1515 acres more or less.

A tract of land lying in the Northeast Quarter of Section 23, Township 19 North, Range 12 East of
the Indian Base and Meridian, Tulsa County, State of Oklahoma, and being more particularly
described as follows:

COMMENCING at the northwest corner of said Northeast Quarter;

THENCE North 89°17’34” East, along the north line of said Northeast Quarter, a distance of 260.93
feet;

THENCE South 00°42’26” East a distance of 193.45 feet to the POINT OF BEGINNING;

THENCE North 89°01’01” East a distance of 70.00 feet;

THENCE South 00°58’59” East a distance of 340.00 feet;

THENCE South 89°01’01” West a distance of 70.00 feet;

THENCE North 00°58’59” West a distance of 340.00 feet to the POINT OF BEGINNING.

Said tract containing 23,800 square feet or 0.5464 acres more or less.

A tract of land lying in the Southeast Quarter of Section 14 and the Northeast Quarter of Section
23, Township 19 North, Range 12 East of the Indian Base and Meridian, Tulsa County, Oklahoma, and
being more particularly described as follows:

COMMENCING at southwest corner of the Southeast Quarter of said Section 14, said point also being
the the northwest corner of the Northeast Quarter of said Section 23;

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THENCE North 89°17’34” East, along the common line between said Sections 14 and 23, a distance of
883.82 feet to the POINT OF BEGINNING;

THENCE North 01°24’27” West a distance of 1,388.91 feet;

THENCE North 08°33’08” East a distance of 170.84 feet;

THENCE South 81°26’52” East a distance of 20.00 feet;

THENCE South 08°33’08” West a distance of 10.00 feet;

THENCE North 81°26’52” West a distance of 10.00 feet;

THENCE South 08°33’08” West a distance of 38.55 feet;

THENCE South 01°24’27” East a distance of 596.53 feet;

THENCE North 88°35’33” East a distance of 25.00 feet;

THENCE South 01°24’27” East a distance of 25.00 feet;

THENCE South 88°35’33” West a distance of 25.00 feet;

THENCE South 01°24’27” East a distance of 334.27 feet;

THENCE North 88°35’33” East a distance of 61.00 feet;

THENCE South 01°24’27” East a distance of 15.00 feet;

THENCE South 88°35’33” West a distance of 61.00 feet;

THENCE South 01°24’27” East, passing at 537.21 feet the common line between said Sections 14 and
23, and continuing for a total distance of 610.32 feet;

THENCE South 05°22’04” West a distance of 183.62 feet;

THENCE South 01°15’33” East a distance of 475.90 feet;

THENCE North 88°44’27” East a distance of 5.00 feet;

THENCE South 01°15’33” East a distance of 20.00 feet;

THENCE South 88°44’27” West a distance of 15.00 feet;

THENCE North 01°15’33” West a distance of 751.70 feet to the POINT OF BEGINNING.

Said tract containing 58,733 square feet or 1.3483 acres more or less.

A tract of land lying in the East Half of the Northwest Quarter of Section 23, Township 19 North,

A-7

 

Range 12 East of the Indian Base and Meridian, Tulsa County, Oklahoma, and being more particularly
described as follows:

COMMENCING at the northeast corner of the said Northwest Quarter

THENCE South 89°17’34” West, along the north line of the said Northwest Quarter, a distance of
316.92 feet;

THENCE South 00°42’26” East a distance of 12.00 feet to the POINT OF BEGINNING;

THENCE South 00°42’26” East a distance of 30.00 feet;

THENCE South 89°17’34” West a distance of 140.00 feet;

THENCE North 00°42’26” West a distance of 30.00 feet;

THENCE North 89°17’34” East a distance of 140.00 feet to the POINT OF BEGINNING.

Said tract containing 4,200 square feet or 0.0964 acres more or less.

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EXHIBIT B

FIRST AMENDED AND RESTATED MEMORANDUM OF LEASE

     THIS FIRST AMENDED AND RESTATED MEMORANDUM OF LEASE (the “Memorandum”) is made and
entered into to be effective as of 11:59 p.m. Dallas, Texas time on March 31, 2010 to reflect the
existence of a First Amended and Restated Lease and Access Agreement dated of even date herewith,
by and between HOLLY REFINING & MARKETING-TULSA LLC, a limited liability company organized and
existing under the laws of Delaware, having an office address at 100 Crescent Court, Suite 1600,
Dallas, Texas 75201 (“Lessor”), and HEP TULSA LLC, a limited liability company organized
and existing under the laws of Delaware, , having an office address at 100 Crescent Court, Suite
1600, Dallas, Texas 75201 (“HEP Tulsa”), and HOLLY ENERGY STORAGE-TULSA LLC, a limited
liability company organized and existing under the laws of Delaware (“HEP Storage-Tulsa,”
and collectively with HEP Tulsa, “Lessees”). Such First Amended and Restated Lease and
Access Agreement is herein referred to as the “Ground Lease”. Lessor and Lessees are
collectively referred to as the “Parties” and individually as a “Party”.

RECITALS

     A. This Memorandum amends and restates that certain Memorandum of Lease recorded on or about
December 1, 2009 as Document Number 2009122414, in the Official Public Records of Real Property in
Tulsa County, Oklahoma.

     B. 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”).

     C. Pursuant to the terms of that certain Asset Sale and Purchase Agreement (the “Group 1
Purchase Agreement”), dated October 19, 2009, among Lessor and HEP Tulsa, as Buyers, and
Sinclair Tulsa Refining Company, as Seller (“Sinclair”), Lessor acquired certain refining
and other related assets and the real property more particularly described on Exhibit A
annexed hereto and made a part hereof (the “Premises”), and HEP Tulsa acquired the Group 1
Assets (as such term is defined in the Ground Lease) all of which are located on the Premises.

     D. Pursuant to an LLC Interest Purchase Agreement dated March 31, 2010, by and between HEP
Tulsa and HEP Refining Company, L.L.C., as Buyers, Lessor and Navajo Refining Company, L.L.C., as
Sellers, and Holly Corporation (the “Group 2 Purchase Agreement”), HEP Tulsa acquired from
Lessor all of the issued and outstanding membership interests of HEP Storage-Tulsa;

     E. HEP Storage-Tulsa is the owner of the Group 2 Assets (as such term is defined in the Ground
Lease), which, together with the Group 1 Assets, are referred to as the “Relevant Assets,”
all of which are located on the Premises.

     F. Lessor has leased the Premises to Lessees pursuant to the terms of the Ground Lease.

B-1

 

     G. Lessor has granted to Lessees 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”).

     H. Lessor and Lessees 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.

     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 March 31,
2010, and terminates on March 30, 2060, 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. Relevant Assets. Pursuant to those certain Bills of Sale dated December 1, 2009,
Sinclair granted, sold, conveyed, assigned, transferred, set over, and vested in HEP Tulsa the
Group 1 Assets. Pursuant to a Conveyance, Assignment and Bill of Sale of even date herewith,
Lessor has granted, sold, conveyed, assigned, transferred, set over, and vested in HEP
Storage-Tulsa the Group 2 Assets.

     3. Early Termination Rights. Lessees have the right, in Lessees’ sole and absolute
discretion, to terminate the Ground Lease, without penalty or premium, if Lessees cease to operate
the Relevant and Additional Improvements, each as defined in the Ground Lease, or ceases its
business.

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

     5. 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.

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

     7. Ground Lease Governs. This Memorandum of Lease has been executed and recorded as
notice of the Ground Lease in lieu of recording the Ground Lease itself. Lessor and Lessees 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 Lessees
hereby covenant and agree that this Memorandum of Lease is and shall be subject to the terms and
conditions more particularly set forth in the Ground Lease. This Memorandum of Lease 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 of Lease 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 of Lease to be executed as of
the date first set forth above.

	 	 	 	 	 	 	 
	ATTEST:	 	LESSOR:

HOLLY REFINING & MARKETING-TULSA 

LLC, a Delaware limited liability company

 	 
	 	 	 	 	 	 
	Name:  	 	 	 	 	 	 
	Title:	 	 	 	 	 	 
	 	 	 	By:  	 	 
	 	 	 	 	David L. Lamp 	 
	 	 	 	 	President 	 
	 	 	 
	ATTEST:	 	LESSEES:

HEP TULSA LLC,

a Delaware limited liability company

 	 
	 	 	 	 	 	 
	Name:	 	 	By:  	 	 
	Title:	 	 	 	David G. Blair 	 
	 	 	 	 	Senior Vice President 	 
	 	 	 
	ATTEST:	 	HOLLY ENERGY STORAGE-TULSA LLC,

a Delaware limited liability company

 	 
	 	 	 	 	 	 
	Name:	 	 	 	 	 	 
	Title:	 	 	By:  	 	 
	 	 	 	 	David G. Blair 	 
	 	 	 	 	President 	 

B-3

 

	 	 	 	 	 

	 	 	 	 
	STATE OF TEXAS

	 	§	 
	 

	 	§	 
	COUNTY OF DALLAS

	 	§	 

     This instrument was acknowledged before me on                     , 2010, by David L. Lamp,
President of HOLLY REFINING & MARKETING-TULSA LLC, a Delaware limited liability company, on behalf
of said limited liability company.

	 	 	 	 	 
	 	 	 
	 	  	 	 
	 	 	Notary Public, State of Texas 	 
	 	 	 	 

B-4

 

	 	 	 	 	 

	 	 	 	 
	STATE OF TEXAS

	 	§	 
	 

	 	§	 
	COUNTY OF DALLAS

	 	§	 

     This instrument was acknowledged before me on                     , 2010, by David G. Blair,
Senior Vice President of HEP TULSA LLC, a Delaware limited liability company, on behalf of said
limited liability company.

	 	 	 	 	 
	 	 	 
	 	  	 	 
	 	 	Notary Public, State of Texas 	 
	 	 	 	 

B-5

 

	 	 	 	 	 

	 	 	 	 
	STATE OF TEXAS

	 	§	 
	 

	 	§	 
	COUNTY OF DALLAS

	 	§	 

     This instrument was acknowledged before me on                     , 2010, by David G, Blair,
President of HOLLY ENERGY STORAGE-TULSA LLC, a Delaware limited liability company, on behalf of
said limited liability company.

	 	 	 	 	 
	 	 	 
	 	  	 	 
	 	 	Notary Public, State of Texas 	 
	 	 	 	 
	 

B-6

 

Exhibit A

Description of Premises

A tract of land lying in the East Half of the Northwest Quarter and the Northeast Quarter of
Section 23, Township 19 North, Range 12 East of the Indian Base and Meridian, Tulsa County, State
of Oklahoma, and being more particularly described as follows:

COMMENCING at the northeast corner of the said Northwest Quarter, said point also being the
northwest corner of the said Northeast Quarter;

THENCE South 00°58’59” East, along the common line between the Northwest Quarter and the Northeast
Quarter, a distance of 564.68 feet to the POINT OF BEGINNING;

THENCE North 88°53’33” East a distance of 13.95 feet;

THENCE South 00°50’02” East a distance of 1,507.22 feet;

THENCE South 89°42’24” West a distance of 188.15 feet;

THENCE North 00°38’14” West a distance of 291.81 feet;

THENCE South 88°54’13” West a distance of 209.06 feet;

THENCE South 01°49’49” East a distance of 268.80 feet;

THENCE South 87°29’45” West a distance of 115.41 feet;

THENCE South 00°12’20” West a distance of 266.41 feet;

THENCE South 89°05’12” West a distance of 316.77 feet;

THENCE North 01°06’24” West a distance of 282.09 feet;

THENCE continuing North 01°06’24” West a distance of 271.57 feet;

THENCE North 86°34’04” West a distance of 80.75 feet;

THENCE South 89°03’38” West a distance of 427.05 feet to a point on the west line of the East Half
of the said Northwest Quarter;

THENCE North 00°54’11” West, along said west line, a distance of 1,550.38 feet;

THENCE South 89°26’14” East a distance of 367.80 feet;

THENCE North 87°38’43” East a distance of 141.55 feet;

THENCE South 00°44’21” East a distance of 801.29 feet;

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THENCE North 89°01’16” East a distance of 433.79 feet;

THENCE North 00°09’34” East a distance of 447.85 feet;

THENCE North 88°53’33” East a distance of 377.19 feet to the POINT OF BEGINNING.

Said tract containing 1,856,282 square feet or 42.6144 acres more or less.

A tract of land lying in the East Half of the Southwest Quarter and the Southeast Quarter of
Section 14, Township 19 North, Range 12 East of the Indian Base and Meridian, Tulsa County, State
of Oklahoma, according to the United States government survey thereof, and being more particularly
described as follows:

COMMENCING at the southeast corner of the said East Half of the Southwest Quarter, said point also
being the southwest corner of the said Southeast Quarter;

THENCE North 01°14’16” West, along the common line between the said Southeast and Southwest Quarter
a distance of 1,127.81 feet to the POINT OF BEGINNING;

THENCE South 88°43’23” West a distance of 273.63 feet;

THENCE North 01°05’02” West a distance of 787.59 feet;

THENCE North 01°30’42” West a distance of 402.41 feet;

THENCE North 87°22’40” East a distance of 209.33 feet;

THENCE South 86°32’11” East a distance of 50.14 feet;

THENCE South 57°19’41” East, passing at 17.12 feet the common line between the said Southwest
Quarter and the Southeast Quarter, and continuing for a total distance of 41.07 feet;

THENCE South 00°55’38” East a distance of 1,167.85 feet;

THENCE South 88°43’23” West a distance of 13.55 feet to the POINT OF BEGINNING.

Said tract containing 344,581 square feet or 7.9105 acres more or less.

A tract of land lying in Government Lot 6 of Section 13 and the Southeast Quarter of Section 14,
Township 19 North, Range 12 East of the Indian Base and Meridian, Tulsa County, Oklahoma, and being
more particularly described as follows:

COMMENCING at the northeast corner of the Southeast Quarter of said Section 14;

THENCE South 01°17’58” East, along the common line between said Sections 13 and 14, a distance of
1,466.75 feet to the POINT OF BEGINNING;

B-8

 

THENCE North 88°37’53” East a distance of 337.54 feet;

THENCE South 00°36’51” East a distance of 375.50 feet;

THENCE South 88°36’24” West a distance of 409.94 feet;

THENCE North 00°10’17” West a distance of 375.72 feet;

THENCE North 88°37’53” East a distance of 69.49 feet to the POINT OF BEGINNING.

Said tract of land containing 153,409 square feet or 3.5218 acres more or less.

A tract of land lying in the East Half of the Southwest Quarter of Section 14, Township 19 North,
Range 12 East of the Indian Base and Meridian, Tulsa County, Oklahoma, and being more particularly
described as follows:

COMMENCING at southeast corner of the Southwest Quarter of said Section 14;

THENCE South 89°17’34” West, along the south line of the said Southwest Quarter, a distance of
273.89 feet;

THENCE North 00°42’26” West a distance of 319.04 feet to the POINT OF BEGINNING;

THENCE South 88°42’44” West a distance of 394.78 feet;

THENCE South 88°24’34” West a distance of 382.43 feet;

THENCE North 02°48’56” West a distance of 422.64 feet;

THENCE North 01°21’23” West a distance of 787.85 feet;

THENCE North 88°04’21” East a distance of 395.99 feet;

THENCE South 01°30’14” East a distance of 795.92 feet;

THENCE North 89°05’59” East a distance of 387.07 feet;

THENCE South 01°45’27” East a distance of 414.21 feet to the POINT OF BEGINNING.

Said tract containing 640,567 square feet or 14.7054 acres more or less.

A tract of land lying in the Southeast Quarter of Section 14, Township 19 North, Range 12 East of
the Indian Base and Meridian, Tulsa County, Oklahoma, and being more particularly described as
follows:

COMMENCING at southwest corner of the Southeast Quarter of said Section 14;

B-9

 

THENCE North 01°14’16” West, along the west line of the said Southeast Quarter, a distance of
737.88 feet;

THENCE North 88°45’44” East a distance of 118.42 feet to the POINT OF BEGINNING;

THENCE North 00°59’42” West a distance of 366.36 feet;

THENCE North 88°29’12” East a distance of 120.43 feet;

THENCE South 80°02’26” East a distance of 119.54 feet;

THENCE South 73°20’45” East a distance of 75.84 feet;

THENCE South 01°58’57” East a distance of 306.59 feet;

THENCE South 83°09’10” West a distance of 151.16 feet;

THENCE South 89°04’44” West a distance of 164.96 feet to the POINT OF BEGINNING.

Said tract containing 109,842 square feet or 2.5216 acres more or less.

A tract of land lying in the Southeast Quarter of Section 14, Township 19 North, Range 12 East of
the Indian Base and Meridian, Tulsa County, Oklahoma, and being more particularly described as
follows:

COMMENCING at the northeast corner of the said Southeast Quarter;

THENCE South 01°17’57” East, along the east line of said Southeast Quarter, a distance of 712.02
feet;

THENCE South 89°41’22” West a distance of 244.09 feet;

THENCE South 85°45’23” West a distance of 225.17 feet;

THENCE South 00°55’39” East a distance of 750.57 feet;

THENCE South 88°36’18” West a distance of 405.16 feet;

THENCE South 03°01’49” East a distance of 172.35 feet;

THENCE South 01°12’31” East a distance of 149.87 feet;

THENCE South 88°25’52” West a distance of 134.78 feet;

THENCE South 01°55’23” East a distance of 206.29 feet to the POINT OF BEGINNING;

THENCE North 89°02’26” East a distance of 111.41 feet;

B-10

 

THENCE South 07°07’38” West a distance of 40.12 feet;

THENCE South 02°41’42” East a distance of 52.93 feet;

THENCE South 89°19’36” West a distance of 105.80 feet;

THENCE North 01°56’12” West a distance of 92.11 feet to the POINT OF BEGINNING.

Said tract of land containing 9,850 square feet or 0.2261 acres more or less.

A tract of land lying in the Southeast Quarter of Section 14, Township 19 North, Range 12 East of
the Indian Base and Meridian, Tulsa County, Oklahoma, and being more particularly described as
follows:

COMMENCING at the northeast corner of the said Southeast Quarter;

THENCE South 01°17’57” East, along the east line of said Southeast Quarter, a distance of 712.02
feet;

THENCE South 89°41’22” West a distance of 244.09 feet;

THENCE South 85°45’23” West a distance of 225.17 feet to the POINT OF BEGINNING;

THENCE South 00°55’39” East a distance of 750.57 feet;

THENCE South 88°36’18” West a distance of 405.16 feet;

THENCE South 03°01’49” East a distance of 172.35 feet;

THENCE South 01°12’31” East a distance of 149.87 feet;

THENCE South 88°25’52” West a distance of 134.78 feet;

THENCE North 01°03’05” West a distance of 494.30 feet;

THENCE North 89°17’16” East a distance of 128.55 feet;

THENCE North 01°00’16” West a distance of 316.69 feet;

THENCE continuing North 01°00’16” West a distance of 273.01 feet;

THENCE North 88°59’37” East a distance of 392.66 feet;

THENCE South 64°59’40” East a distance of 15.02 feet to the POINT OF BEGINNING.

Said tract of land containing 372,460 square feet or 8.5505 acres more or less.

B-11

 

A tract of land lying in the Northeast Quarter of Section 23, Township 19 North, Range 12 East of
the Indian Base and Meridian, Tulsa County, State of Oklahoma, and being more particularly
described as follows:

COMMENCING at the northwest corner of said Northeast Quarter;

THENCE North 89°17’34” East, along the north line of said Northeast Quarter, a distance of 366.03
feet;

THENCE South 00°42’26” East a distance of 212.66 feet to the POINT OF BEGINNING;

THENCE North 89°01’01” East a distance of 60.00 feet;

THENCE South 00°58’59” East a distance of 110.00 feet;

THENCE South 89°01’01” West a distance of 60.00 feet;

THENCE North 00°58’59” West a distance of 110.00 feet to the POINT OF BEGINNING.

Said tract containing 6,600 square feet or 0.1515 acres more or less.

A tract of land lying in the Northeast Quarter of Section 23, Township 19 North, Range 12 East of
the Indian Base and Meridian, Tulsa County, State of Oklahoma, and being more particularly
described as follows:

COMMENCING at the northwest corner of said Northeast Quarter;

THENCE North 89°17’34” East, along the north line of said Northeast Quarter, a distance of 260.93
feet;

THENCE South 00°42’26” East a distance of 193.45 feet to the POINT OF BEGINNING;

THENCE North 89°01’01” East a distance of 70.00 feet;

THENCE South 00°58’59” East a distance of 340.00 feet;

THENCE South 89°01’01” West a distance of 70.00 feet;

THENCE North 00°58’59” West a distance of 340.00 feet to the POINT OF BEGINNING.

Said tract containing 23,800 square feet or 0.5464 acres more or less.

A tract of land lying in the Southeast Quarter of Section 14 and the Northeast Quarter of Section
23, Township 19 North, Range 12 East of the Indian Base and Meridian, Tulsa County, Oklahoma, and
being more particularly described as follows:

COMMENCING at southwest corner of the Southeast Quarter of said Section 14, said point also

B-12

 

being the the northwest corner of the Northeast Quarter of said Section 23;

THENCE North 89°17’34” East, along the common line between said Sections 14 and 23, a distance of
883.82 feet to the POINT OF BEGINNING;

THENCE North 01°24’27” West a distance of 1,388.91 feet;

THENCE North 08°33’08” East a distance of 170.84 feet;

THENCE South 81°26’52” East a distance of 20.00 feet;

THENCE South 08°33’08” West a distance of 10.00 feet;

THENCE North 81°26’52” West a distance of 10.00 feet;

THENCE South 08°33’08” West a distance of 38.55 feet;

THENCE South 01°24’27” East a distance of 596.53 feet;

THENCE North 88°35’33” East a distance of 25.00 feet;

THENCE South 01°24’27” East a distance of 25.00 feet;

THENCE South 88°35’33” West a distance of 25.00 feet;

THENCE South 01°24’27” East a distance of 334.27 feet;

THENCE North 88°35’33” East a distance of 61.00 feet;

THENCE South 01°24’27” East a distance of 15.00 feet;

THENCE South 88°35’33” West a distance of 61.00 feet;

THENCE South 01°24’27” East, passing at 537.21 feet the common line between said Sections 14 and
23, and continuing for a total distance of 610.32 feet;

THENCE South 05°22’04” West a distance of 183.62 feet;

THENCE South 01°15’33” East a distance of 475.90 feet;

THENCE North 88°44’27” East a distance of 5.00 feet;

THENCE South 01°15’33” East a distance of 20.00 feet;

THENCE South 88°44’27” West a distance of 15.00 feet;

THENCE North 01°15’33” West a distance of 751.70 feet to the POINT OF BEGINNING.

Said tract containing 58,733 square feet or 1.3483 acres more or less.

B-13

 

A tract of land lying in the East Half of the Northwest Quarter of Section 23, Township 19 North,
Range 12 East of the Indian Base and Meridian, Tulsa County, Oklahoma, and being more particularly
described as follows:

COMMENCING at the northeast corner of the said Northwest Quarter

THENCE South 89°17’34” West, along the north line of the said Northwest Quarter, a distance of
316.92 feet;

THENCE South 00°42’26” East a distance of 12.00 feet to the POINT OF BEGINNING;

THENCE South 00°42’26” East a distance of 30.00 feet;

THENCE South 89°17’34” West a distance of 140.00 feet;

THENCE North 00°42’26” West a distance of 30.00 feet;

THENCE North 89°17’34” East a distance of 140.00 feet to the POINT OF BEGINNING.

Said tract containing 4,200 square feet or 0.0964 acres more or less.

B-14

 

 

FIRST AMENDED AND RESTATED MEMORANDUM OF LEASE

 

Dated: March 31, 2010

 

FIRST AMENDED AND RESTATED MEMORANDUM OF LEASE

Between

BETWEEN

HOLLY REFINING & MARKETING-TULSA LLC,

AS LESSOR

AND

HEP TULSA LLC

AND

HOLLY ENERGY STORAGE-TULSA LLC,

AS LESSEES

Record and return to:

Holly Corporation

100 Crescent Court, Suite 1600

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

     Lessees agree that during the terms of this Lease they 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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