Document:

EX1032014Q1AmendmentNumberFive-WFCF_SGI

Exhibit 10.3

AMENDMENT NUMBER FIVE TO CREDIT AGREEMENT AND WAIVER
This Amendment Number Five to Credit Agreement and Waiver (“Amendment”) is entered into as of July 12, 2013, by and among the lenders identified on the signature pages hereof (such lenders, together with their respective successors and permitted assigns, are referred to hereinafter each individually as a “Lender” and collectively as the “Lenders”), and WELLS FARGO CAPITAL FINANCE, LLC, a Delaware limited liability company, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, “Agent”), on the one hand, and SILICON GRAPHICS INTERNATIONAL CORP., a Delaware corporation (“Parent”), SILICON GRAPHICS FEDERAL, LLC, a Delaware corporation, f/k/a Silicon Graphics Federal, Inc. (“Silicon Federal”; and together with Parent each individually a “Borrower”, and individually and collectively, jointly and severally, the “Borrowers”), on the other hand, with reference to the following facts:
A.Borrowers, Agent, and Lenders have previously entered into that certain Credit Agreement, dated as of December 5, 2011 (as amended from time to time, the “Agreement”).
B.On June 24, 2013, Silicon Federal changed its name from Silicon Graphics Federal, Inc. to Silicon Graphics Federal, LLC (the “Name Change”), and changed in organizational identity from a Delaware corporation to a Delaware limited liability company (the “Organizational Change”).
C.Borrowers failed to notify Agent of the Name Change and the Organizational Change in writing at least 10 days prior thereto as required by Section 6.5 of the Agreement (the “Existing Default”).
D.Borrowers have requested that Agent and Lenders waive the Existing Default and make certain amendments to the Agreement as provided for and on the conditions set forth herein.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby amend and supplement the Agreement as follows:
1.    DEFINITIONS.  All initially capitalized terms used in this Amendment shall have the meanings given to them in the Agreement unless specifically defined herein.
2.    AMENDMENTS.  
(a)    All references in the Agreement and all other Loan Documents to “Silicon Federal” shall be deemed to refer to Silicon Graphics Federal, LLC.
(b)    Schedule 1.1 to the Agreement is hereby amended by amending and restating the following definitions in their entirety as follows:
“Borrowing Base” means, as of any date of determination, the result of:
(a)    the sum of (i) 85% of the amount of Eligible Domestic Accounts, plus (ii) the lesser of (1) $10,000,000 and (2) 85% of the amount of Eligible Foreign Accounts, plus (iii) the lesser of (1) $5,000,000 and (2) 85% of the amount of Eligible US Government Accounts, less (iv) the amount, if any, of the Dilution Reserve, plus
(b)    the lowest of 
(i)    the greater of (1) $15,000,000, or (2) the lesser of (x) $20,000,000 and (y) 100% of the amount of availability created by clause (a) above,
(ii)    50% of the value (calculated at the lower of cost or market on a basis consistent with Borrowers’ historical accounting practices) of Eligible Inventory, and

Exhibit 10.3

(iii)    85% times the most recently determined Net Liquidation Percentage times the value (calculated at the lower of cost or market on a basis consistent with Borrowers’ historical accounting practices) of Borrowers’ Eligible Inventory, minus
(c)    the aggregate amount of reserves, if any, established by Agent under Section 2.1(c) of the Agreement, plus
(d)    100% of the undrawn amount of the Cash Collateralized Letters of Credit as of such date of determination.
“Letter of Credit Usage” means, as of any date of determination, the aggregate undrawn amount of all outstanding Letters of Credit (including, unless otherwise indicated, any Cash Collateralized Letters of Credit).
“Revolver Usage” means, as of any date of determination, the sum of (a) the amount of outstanding Advances, plus (b) the amount of the Letter of Credit Usage (but not including any Letter of Credit Usage in connection with Cash Collateralized Letters of Credit).
(c)    Schedule 1.1 to the Agreement is hereby amended by adding the following new definitions in the appropriate alphabetical order:
“Available Increase Amount” means, as of any date of determination, an amount equal to the result of (a) $10,000,000 minus (b) the aggregate principal amount of Increases to the Revolver Commitments previously made pursuant to Section 2.15 of the Agreement.
“Cash Collateral Account” means a Deposit Account maintained at Wells Fargo by Borrowers and designated by Administrative Borrower or Agent as the “Cash Collateral Account” and at all times subject to Agent’s first-priority perfected Lien and a Control Agreement in favor of Agent for the benefit of the those Lenders with a Revolver Commitment; provided, that the cash maintained in the Cash Collateral Account may, at Borrowers’ option, be in the form of one or more non-negotiable certificates of deposit issued by Wells Fargo having a maturity of one (1) year or less from the date of issuance thereof.
“Cash Collateralized Letters of Credit” means Letters of Credit that are designated by Administrative Borrower as “Cash Collateralized Letters of Credit” and are supported by Letter of Credit Cash Collateral in the Cash Collateral Account in an amount at least equal to the sum of 105% of the undrawn amount of such Letters of Credit.
“Excess” has the meaning specified therefor in Section 2.15.
“Increase” has the meaning specified therefor in Section 2.15.
“Increase Date” has the meaning specified therefor in Section 2.15.
“Increase Joinder” has the meaning specified therefor in Section 2.15.
“Letter of Credit Cash Collateral” means cash collateral deposited in the Cash Collateral Account and subject to the terms and conditions of Section 2.11(h).
“Post-Increase Revolver Lenders” has the meaning specified therefor in Section 2.15.
“Pre-Increase Revolver Lenders” has the meaning specified therefor in Section 2.15.
(d)    Clause (b) set forth in Section 2.6 of the Agreement is amended by deleting such clause in its entirety and replacing it with the following:
(b)    Letter of Credit Fees.  

Exhibit 10.3

(i)    With respect to Cash Collateralized Letters of Credit, Borrowers shall pay Agent (for the ratable benefit of the Lenders with a Revolver Commitment), a Letter of Credit fee (in addition to any applicable charges, commissions, fees, and costs set forth in Section 2.11(f)) which shall accrue at a per annum rate equal to 1.50%  times the Daily Balance of the undrawn amount of all outstanding Cash Collateralized Letters of Credit.  
(ii)    With respect to Letters of Credit (other than Cash Collateralized Letters of Credit) Borrowers shall pay Agent (for the ratable benefit of the Lenders with a Revolver Commitment), a Letter of Credit fee (in addition to the charges, commissions, fees, and costs set forth in Section 2.11(f)) which shall accrue at a per annum rate equal to the LIBOR Rate Margin times the Daily Balance of the undrawn amount of all outstanding Letters of Credit, other than Cash Collateralized Letters of Credit.
(e)    Clause (f) set forth in Section 2.11 of the Agreement is amended by deleting such clause in its entirety and replacing it with the following:
(f)    Each Borrower acknowledges and agrees that any and all issuance charges, usage charges, commissions, fees, and costs incurred by the Issuing Lender relating to Underlying Letters of Credit shall be Lender Group Expenses for purposes of this Agreement and shall be reimbursable immediately by Borrowers to Agent for the account of the Issuing Lender; it being acknowledged and agreed by Borrowers that, (i) there are no usage charges in respect of Cash Collateralized Letters of Credit, and (ii) the usage charge imposed by the Underlying Issuer in respect of Letters of Credit (other than Cash Collateralized Letters of Credit) is .50% per annum times the undrawn amount of each Underlying Letter of Credit, and such usage charge may be changed from time to time, and that the Underlying Issuer also imposes a schedule of charges for amendments, extensions, drawings, and renewals.
(f)    Section 2.11 of the Agreement is hereby amended by adding the following new clause (h) at the end thereof:
(h)    Notwithstanding anything to the contrary set forth in this Agreement, the following the terms and conditions are applicable to the Letter of Credit Cash Collateral and Cash Collateralized Letters of Credit:
(i)    At any time Cash Collateralized Letters of Credit are outstanding, Borrowers agree to maintain funds in the Cash Collateral Account in an aggregate amount at least equal to the sum of 105% of the undrawn amount of such Cash Collateralized Letters of Credit.  Borrowers further agree that (1) the cash collateral deposited in the Cash Collateral Account shall be segregated from its other funds, and (2) the aggregate amount of Cash Collateralized Letters of Credit shall not exceed $5,000,000 at any time.
(ii)    Borrowers agree that it may not use the cash collateral deposited in the Cash Collateral Account for any purpose other than to secure its obligations with respect to Cash Collateralized Letters of Credit and the other Obligations. Without limiting the generality of the foregoing, Borrowers agree that while any of Cash Collateralized Letters of Credit are outstanding, they shall have no right to withdraw funds from the Cash Collateral Account or otherwise access the Cash Collateral Account except with the prior written consent of Agent.
(iii)    Borrowers, Agent and Lenders acknowledge and agree that Borrowers may from time to time deposit additional funds in the Cash Collateral Account to be included as Letter of Credit Cash Collateral.  Any additional funds deposited by Borrowers in the Cash Collateral Account shall immediately (and without further action by any party hereto) be deemed to be Letter of Credit Cash Collateral and shall be subject to the terms and provisions of this clause (h) with respect to cash collateral deposited in the Cash Collateral Account.
(iv)    The cash collateralization of any Letters of Credit designated by Administrative Borrower as “Cash Collateralized Letters of Credit” pursuant to the terms hereof shall not relieve Borrowers from the obligation to pay Agent for any Letter of Credit Disbursements in accordance with Section 2.11(a) with respect to such Letters of Credit; provided, that in the absence of timely payment with respect to such Letter of Credit Disbursement by Borrowers in accordance with Section 2.11(a), and anything to the contrary contained in any Loan Document notwithstanding, such Letter of Credit Disbursement shall not automatically be deemed to be an Advance, 

Exhibit 10.3

but Agent may, without notice to Borrowers, exercise its remedies with respect to the Cash Collateral Account to reimburse the Issuing Lender or the Underlying Issuer for such Letter of Credit Disbursement.  In furtherance of the forgoing, Borrowers acknowledge and agree that Agent may, with notice to Borrowers (provide such notice shall not be required if at the time an Event of Default has occurred and is continuing), break any and all non-negotiable certificates of deposit constituting cash held in the Cash Collateral Account, and to the extent such breakage would result in any fees or charges to Borrowers, the same shall be payable by Borrowers and be satisfied with proceeds from the Cash Collateral Account.  If Borrowers fail to timely pay Agent for a Letter of Credit Disbursement in accordance with Section 2.11(a) relative to Cash Collateralized Letters of Credit and there are insufficient funds in the Cash Collateral Account to reimburse the Issuing Lender or the Underlying Issuer for such Letter of Credit Disbursement, or if Agent is prevented from exercising its remedies with the respect to the Cash Collateral Account to reimburse the Issuing Lender or the Underlying Issuer for such Letter of Credit Disbursement, then such Letter of Credit Disbursement immediately and automatically shall be deemed to be an Advance hereunder and, initially, shall bear interest at the rate then applicable to Advances that are Base Rate Loans.  If a Letter of Credit Disbursement is deemed to be an Advance under this clause (h) (notwithstanding any failure to satisfy any condition precedent set forth in Section 3), Borrowers’ obligation to pay the amount of such Letter of Credit Disbursement to Issuing Lender shall be automatically converted into an obligation to pay the resulting Advance. In accordance with this Section 2.11, each Lender with a Commitment shall fund its Pro Rata Share of any Advance deemed made for any Letter of Credit Disbursements with respect to Cash Collateralized Letters of Credit.
(v)    Anything to the contrary in any Loan Document notwithstanding, Borrowers acknowledge and agree that Agent may at its option and with notice to Borrowers (provide such notice shall not be required if at the time an Event of Default has occurred and is continuing) (i) exercise its rights and remedies with respect to the Cash Collateral Account to satisfy any issuance charges, commissions, fees, and costs set forth Sections 2.6(b) and 2.11(f) that are due and payable with respect to Cash Collateralized Letters of Credit, and (ii) if any Event of Default has occurred and is continuing, exercise its rights and remedies with respect to the Cash Collateral Account to satisfy any Obligations, including without limitation breaking any and all non-negotiable certificates of deposit constituting cash held in the Cash Collateral Account, and to the extent such breakage would result in any fees or charges to Borrowers, the same shall be payable by Borrowers and be satisfied with proceeds from the Cash Collateral Account.
(vi)    Borrower acknowledges and agrees that, except as otherwise set forth in this clause (h), all other terms and conditions of this Agreement regarding the Issuing Lender, Underlying Issuer, Letters of Credit, and Letter of Credit Disbursements shall continue to apply to Cash Collateralized Letters of Credit.
(g)    Section 2.15 of the Agreement is amended by deleting such Section in its entirety and replacing it with the following:
2.15    Increase in Revolver Commitments.(a)    At any time prior to December 5, 2015, at the option of Borrowers (but subject to the conditions set forth in clause (b) below), the Revolver Commitments and the Maximum Revolver Amount may be increased by an amount in the aggregate for all such increases of the Revolver Commitments and the Maximum Revolver Amount not to exceed the Available Increase Amount (each such increase, an “Increase”).  Agent shall invite each Lender to increase its Revolver Commitments (it being understood that no Lender shall be obligated to increase its Revolver Commitments in connection with a proposed Increase at the interest margin proposed by Borrowers, and if sufficient Lenders do not agree to increase their Revolver Commitments in connection with such proposed Increase, then Agent or Borrowers may invite any prospective lender who is reasonably satisfactory to Agent and Borrowers to become a Lender in connection with a proposed Increase.  Any Increase shall be in an amount of at least $1,000,000 and integral multiples of $1,000,000 in excess thereof.  In no event may the Revolver Commitments and the Maximum Revolver Amount be increased pursuant to this Section 2.15 on more than three occasions in the aggregate for all such Increases.  Additionally, for the avoidance of doubt, it is understood and agreed that in no event shall the aggregate amount of the Increases to the Revolver Commitments exceed $10,000,000.
(b)    Each of the following shall be conditions precedent to any Increase of the Revolver Commitments and the Maximum Revolver Amount:

Exhibit 10.3

(i)    Agent or Borrowers have obtained the commitment of one or more Lenders (or other prospective lenders) reasonably satisfactory to Agent and Borrowers to provide the applicable Increase and any such Lenders (or prospective lenders), Borrowers, and Agent have signed a joinder agreement to this Agreement (an “Increase Joinder”), in form and substance reasonably satisfactory to Agent, to which such Lenders (or prospective lenders), Borrowers, and Agent are party,
(ii)    each of the conditions precedent set forth in Section 3.2 are satisfied,
(iii)    Borrowers have delivered to Agent updated pro forma Projections (after giving effect to the applicable Increase) for Parent and its Subsidiaries evidencing compliance on a pro forma basis with Section 7 for the 4 fiscal quarters (on a quarter-by-quarter basis) immediately following the proposed date of the applicable Increase, and
(iv)    Borrowers shall have reached agreement with the Lenders (or prospective lenders) agreeing to the increased Revolver Commitments with respect to the interest margins applicable to Revolving Loans to be made pursuant to the increased Revolver Commitments (which interest margins may be made pursuant to the increased Revolver Commitments, higher than or equal to the interest margins applicable to Revolving Loans set forth in this Agreement immediately prior to the date of the increased Revolver Commitments (the date of the effectiveness of the increased Revolver Commitments and the Maximum Revolver Amount the “Increase Date”)) and shall have communicated the amount of such interest margins to Agent.  Any Increase Joinder may, with the consent of Agent, Borrowers and the Lenders or prospective lenders agreeing to the proposed Increase, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate to effectuate the provisions of this Section 2.15 (including any amendment necessary to effectuate the interest margins for the Revolving Loans to be made pursuant to the increased Revolver Commitments).  Anything to the contrary contained herein notwithstanding, if the interest margin that is to be applicable to the Revolving Loans to be made pursuant to the increased Revolver Commitments or is higher than the interest margin applicable to the Revolving Loans immediately prior to the applicable Increase Date (the amount by which the interest margin is higher, the “Excess”), then the interest margin applicable to the Revolving Loans immediately prior to the Increase Date shall be increased by the amount of the Excess, effective on the applicable Increase Date, and without the necessity of any action by any party hereto.
(c)    Unless otherwise specifically provided herein, all references in this Agreement and any other Loan Document to Revolving Loans shall be deemed, unless the context otherwise requires, to include Revolving Loans made pursuant to the increased Revolver Commitments and Maximum Revolver Amount pursuant to this Section 2.15.
(d)    Each of the Lenders having a Revolver Commitment prior to the Increase Date (the “Pre-Increase Revolver Lenders”) shall assign to any Lender which is acquiring a new or additional Revolver Commitment on the Increase Date (the “Post-Increase Revolver Lenders”), and such Post-Increase Revolver Lenders shall purchase from each Pre-Increase Revolver Lender, at the principal amount thereof, such interests in the Revolving Loans and participation interests in Letters of Credit on such Increase Date as shall be necessary in order that, after giving effect to all such assignments and purchases, such Revolving Loans and participation interests in Letters of Credit will be held by Pre-Increase Revolver Lenders and Post-Increase Revolver Lenders ratably in accordance with their Pro Rata Share after giving effect to such increased Revolver Commitments.
(e)    The Revolving Loans, Revolver Commitments, and Maximum Revolver Amount established pursuant to this Section 2.15 shall constitute Revolving Loans, Revolver Commitments, and Maximum Revolver Amount under, and shall be entitled to all the benefits afforded by, this Agreement and the other Loan Documents, and shall, without limiting the foregoing, benefit equally and ratably from any guarantees and the security interests created by the Loan Documents.  Borrowers shall take any actions reasonably required by Agent to ensure and demonstrate that the Liens and security interests granted by the Loan Documents continue to be perfected under the Code or otherwise after giving effect to the establishment of any such new Revolver Commitments and Maximum Revolver Amount.
(h)    Exhibit B-1 of the Agreement is hereby amended by (i) deleting such Exhibit in its entirety, and (ii) inserting the Exhibit B-1 attached hereto as Exhibit A in lieu thereof.

Exhibit 10.3

3.    WAIVER. The provisions of the Agreement and the other Loan Documents to the contrary notwithstanding, and subject to the satisfaction of the conditions precedent set forth herein, Agent and the undersigned Lenders hereby waive the Existing Default; provided, that nothing herein, nor any communications among Borrowers, Agent, or any Lender, shall be deemed a waiver with respect to any current or future Default or Event of Default, other than the Existing Default, and in no event shall this waiver be deemed to be a waiver of enforcement of any of Agent’s or Lenders’ rights or remedies under the Agreement and the other Loan Documents, at law (including under the Code), in equity, or otherwise, with respect to any other Default or Event of Default now existing or hereafter arising.
4.    REPRESENTATIONS AND WARRANTIES.  Each Borrower hereby affirms to Agent and Lenders that all of such Borrower’s representations and warranties set forth in the Agreement are true, complete and accurate in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) as of the date hereof (except to the extent that such representations and warranties relate solely to an earlier date).
5.    NO DEFAULTS.  Other than the Existing Default, each Borrower hereby affirms to Agent and Lenders that no Event of Default has occurred and is continuing as of the date hereof.
6.    CONDITIONS.  
(a)    Conditions Precedent.  The effectiveness of this Amendment is hereby conditioned upon receipt by Agent of (a) a fully executed copy of this Amendment from each party hereto, and (b) subject to the condition subsequent set forth below with respect to control over such cash, evidence that at least $2,100,000 of Letter of Credit Cash Collateral has been deposited in the Cash Collateral Account.
(b)    Condition Subsequent.  On or before July 26, 2013, Borrowers shall deliver to Agent a Control Agreement for the Cash Collateral Account, duly executed and delivered by the parties thereto, and the same shall be in form and substance satisfactory to Agent (including that Borrowers shall have no access to the funds in the Cash Collateral Account without the prior written consent of Agent).  Any failure by Borrowers to comply with the forgoing condition subsequent within the prescribed time period shall constitute an Event of Default (unless otherwise waived or extended by agent in its sole discretion).
7.    REAFFIRMATION; ASSUMPTION.  Each Borrower hereby acknowledges and reaffirms (i) all of its obligations and duties under the Loan Documents, and (ii) that the Agent, for the ratable benefit of the Lender Group, has and shall continue to have valid, perfected Liens in the Collateral as provided in the Security Agreement.  In connection with the forgoing, Silicon Graphics Federal, LLC hereby (x) assumes and agrees to perform when due all present and future obligations and duties of Silicon Graphics Federal, Inc. under the Agreement and other Loan Documents and (y) ratifies and confirms that the security interest in and Lien on all Collateral as security for the obligations of Silicon Graphics Federal, Inc. under the Agreement and other Loan Documents remain effective as against Silicon Graphics Federal, LLC.
8.    COSTS AND EXPENSES.  Borrowers shall pay to Agent and Lenders all of Agent’s and Lenders’ out-of-pocket costs and expenses (including, without limitation, the fees and expenses of its counsel, which counsel may include any local counsel deemed necessary, search fees, filing and recording fees, documentation fees, appraisal fees, travel expenses, and other fees) arising in connection with the preparation, execution, and delivery of this Amendment and all related documents.
9.    LIMITED EFFECT.  In the event of a conflict between the terms and provisions of this Amendment and the terms and provisions of the Agreement, the terms and provisions of this Amendment shall govern.  In all other respects, the Agreement, as amended and supplemented hereby, shall remain in full force and effect.

Exhibit 10.3

10.    COUNTERPARTS; EFFECTIVENESS.  This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which when so executed and delivered shall be deemed to be an original.  All such counterparts, taken together, shall constitute but one and the same Amendment.  This Amendment shall become effective upon the execution of a counterpart of this Amendment by each of the parties hereto.  This Amendment is a Loan Document and is subject to all the terms and conditions, and entitled to all the protections, applicable to Loan Documents generally.
[signatures to follow]
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first set forth above.
	
		
	SILICON GRAPHICS INTERNATIONAL CORP., 
a Delaware corporation

	 

	 

	By:
	/s/ Jennifer Pileggi

	Title:
	SVP, General Counsel and Corporate Secretary

	 

	 

	SILICON GRAPHICS FEDERAL, LLC, 
a Delaware limited liability company

	 

	 

	By:
	/s/ Kent Randolph

	Title:
	Secretary

	 

	 

	WELLS FARGO CAPITAL FINANCE, LLC, 
a Delaware limited liability company, as Agent and as a Lender

	 

	By:
	/s/ Rina Shinoda

	Title:
	Vice PresidentExhibit 10.1 - 2010 Incentive Plan - RSU Non-Employee Directors Agreement

This document constitutes part of a prospectus covering securities
that have been registered under the Securities Act of 1933, as amended.

WESTERN REFINING, INC. EQUITY INCENTIVE PLAN
RESTRICTED SHARE UNIT AWARD AGREEMENT
FOR NON-EMPLOYEE DIRECTORS

Western Refining, Inc., a Delaware corporation (the “Company”), hereby grants to [_____________] (the “Participant”) this Award of Restricted Share Units (“RSUs”) pursuant to the 2010 Incentive Plan of Western Refining, Inc. (the “Plan”) upon the following terms and conditions:
	
		
	Name of Participant:
	 

	 
	 

	Grant Date:
	 

	 
	 

	Number of RSUs:
	 

1.This Award is subject to all terms and conditions of this Award Agreement and the Plan.  The terms of the Plan are hereby incorporated by reference.  Capitalized terms not otherwise defined herein shall have the meaning assigned to such term in the Plan.
2.    Each RSU represents a right to a future payment equal to the Fair Market Value of one Share at the time of such payment.  Such payment may, at the Committee’s election, be in cash or Shares or a combination thereof.
3.    To the extent dividends are paid on Shares after the Grant Date and prior to the settlement, forfeiture or cancellation of an RSU (such period, the “Dividend Accrual Period”), the Participant shall be entitled to receive, at the time such RSU is settled in accordance with its terms, a payment in an amount equal to the value (without interest) of the dividends that would have been paid on the Shares underlying such RSU had such Shares been outstanding during the Dividend Accrual Period (any such dividends, the “Accrued Dividends”); provided, however, that if the Participant has made a valid election to defer this Award (as determined pursuant to the Committee’s election form) in accordance with procedures established by the Committee, the Participant will be entitled to receive, in lieu of such payment, a credit to the Participant’s account under the Deferred Compensation Plan, and the vesting date of the RSUs to which the Accrued Dividends relate will be considered the date on which the deferred compensation represented by Accrued Dividends “would otherwise have been payable to the Participant” for purposes of Section 6.2 of the Deferred Compensation Plan.  Notwithstanding the foregoing, to the extent an RSU is forfeited or cancelled, any Accrued Dividends with respect to such RSU shall be forfeited in full.
4.    Subject to the terms and conditions of the Plan and this Award Agreement, and subject to the Participant’s continued service as a director of the Company as of the relevant Vesting Date, as hereinafter defined, the Participant shall be entitled to receive (and the Company shall deliver to the Participant) the number of Shares underlying the RSUs (or a cash payment therefor) on the Vesting Date.  For purposes of this Award Agreement, 

    

“Vesting Date” shall mean the fourth business day prior to the end of [_________] and any other date on which the RSU becomes nonforfeitable in accordance with Section 5.  Except as provided in Section 5, the RSU shall be settled by the delivery of Shares or the value thereof, on or promptly following the Vesting Date, but not later than December 31 of the year in which such Vesting Date occurs; provided, however, that if the Participant has made a valid election to defer this Award (as determined pursuant to the Committee’s election form) in accordance with procedures established by the Committee, the Participant will be entitled to receive, in lieu of such Shares (or a cash payment therefor, as applicable), a credit to the Participant’s account under the Deferred Compensation Plan, and the Vesting Date will be considered the date on which the deferred compensation represented by the settlement of the RSUs “would otherwise have been payable to the Participant” for purposes of Section 6.2 of the Deferred Compensation Plan.
5.    (A) If the Participant terminates service on the Board for any reason other than the Participant’s Disability or death, prior to the vesting of any RSUs in accordance with Section 4 hereof, any unvested RSUs hereunder as of the date of such termination shall automatically be forfeited and cancelled by the Company.  All RSUs not then vested shall immediately become nonforfeitable if Participant ceases service as a director of the Company due to Participant’s Disability or death.
(b)    In the event of a Change in Control, as hereinafter defined, any RSUs which have not yet become nonforfeitable shall accelerate and become nonforfeitable immediately upon the Change in Control.  
(c)    For purposes of this Award, a “Change in Control” shall occur on any one of the following:
(i)    the date that any one person, or more than one person acting as a group (as defined for purposes of Section 409A), acquires ownership of stock of the Company that, together with stock held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the stock of the Company,
(ii)    the date a majority of members of the Company’s board of directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s board of directors before the date of the appointment or election,
(iii)    the date that any one person, or more than one person acting as a group (as defined for purposes of Section 409A), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than 40 percent of the total gross fair market value of all of the assets of the Company immediately before such acquisition or acquisitions.  For this purpose, gross fair market value means the value of the assets of the Company, or the value of the assets being 

Restricted Share Unit Award
Page 2 of 4
    

disposed of, determined without regard to any liabilities associated with such assets.
(iv)    The events specified in this Section 5(c) are intended to be events that in each case would be treated as a change in ownership or control of the Company or of a substantial portion of its assets, for purposes of Section 409A, and shall be interpreted accordingly.
6.    For purposes of this Award Agreement, any question as to whether and when there has been a termination of service as a director, and the cause of such termination, shall be determined by the Committee in its sole discretion, and its determination shall be final.
7.    In the event that Shares or the value thereof, as applicable, and Accrued Dividends (if any) are credited to the Participant’s account in the Deferred Compensation Plan in accordance with Section 4, the terms of the Deferred Compensation Plan shall thereafter govern all aspects of this Award, including without limitation, the timing of payment thereof, and any provision of this Award Agreement that conflicts with the Deferred Compensation Plan shall be superseded.  For the avoidance of doubt, however, Section 3 hereof shall remain in effect.
8.    The Company shall have the right to take any action as may be necessary or appropriate to satisfy any federal, state or local tax withholding obligations, including, but not limited to, the right to withhold cash or shares sufficient to pay any amount required to be withheld and to cause such shares to be sold and the proceeds remitted to the Company.  In the event that the proceeds of such sale are less than the legally required withholding amount, the Company may withhold the difference from any cash or shares then or thereafter payable to Participant.  The Company makes no commitment or guarantee to Participant that any federal or state tax treatment will apply or be available to any person eligible for benefits under this Award Agreement.
9.    An RSU does not represent an equity interest in the Company, and carries no voting rights.  The Participant will not have any rights of a shareholder with respect to the RSUs until the Shares have been delivered to him.
10.    Notices hereunder and under the Plan, if to the Company, shall be delivered to the Plan Administrator (as so designated by the Company) or mailed to the Company’s principal office, Western Refining, Inc., 123 West Mills Avenue, Suite 200, El Paso, Texas 79901, attention of the Plan Administrator, or, if to the Participant, shall be delivered or mailed to the Participant’s address as the same appears on the records of the Company.
11.    All decisions and interpretations made by the Board or the Committee with regard to any question arising hereunder or under the Plan shall be binding and conclusive on all persons.  In the event of any inconsistency between the provisions of this Award Agreement and the Plan, this Award Agreement shall govern.

Restricted Share Unit Award
Page 3 of 4
    

12.    By accepting this Award, the Participant acknowledges receipt of a copy of the Plan, agrees to be bound by the terms and conditions set forth in this Award Agreement and the Plan, as in effect from time to time, and agrees to enter into any such written representations, warranties and agreements and execute any such documents as the Company may reasonably request in order to comply with the terms of this Award Agreement, the Plan, any securities laws or any other applicable laws, rules or regulations.
13.    This Award Agreement shall be governed by the laws of the state of Texas without giving effect to its choice of law provisions.  The state or federal courts sitting in Dallas County, Texas shall be the exclusive venue for any dispute regarding the Plan or this Award Agreement.
14.    In the event that any provision of this Award Agreement shall be held illegal, invalid or unenforceable for any reason, such provision shall be fully severable and shall not affect the remaining provisions of this Award Agreement, and this Award Agreement shall be construed and enforced as if the illegal, invalid or unenforceable provision had never been included herein.

	
		
	WESTERN REFINING, INC.

	By:
	 

	Name:    

	Title:    

	
		
	 
	Acknowledged and Agreed

	 
	[________________]

	Name:
	 

	Date:
	 

Restricted Share Unit Award
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