Document:

exv10w1

 

Exhibit 10.1

Amendment and Supplement to Pipeline Lease Agreement

     This Amendment and Supplement to Pipeline Lease Agreement (this “Amendment”) is made and
entered into effective August 31, 2007, by and between HEP Pipeline Assets, Limited Partnership, a
Delaware limited partnership (“HEP”), and Alon USA, LP, a Texas limited partnership (“Alon”). HEP
and Alon sometimes shall be referred to herein, collectively, as the “Parties.”

RECITALS

     A. On February 21, 1997, Navajo Pipeline Company, a Delaware corporation (“Navajo”), and
American Petrofina Pipe Line Company, a Delaware corporation (“American Petrofina”), executed that
certain Pipeline Lease Agreement pursuant to which Navajo leased to American Petrofina certain
undivided interests in the capacity of Navajo’s 12” — 8” petroleum products pipeline that extends
between Orla, Texas and El Paso, Texas (said Pipeline Lease Agreement shall be hereinafter referred
to as the “Pipeline Lease Agreement”).

     B. Effective July 13, 2004, HEP became the owner of the pipeline that is the subject of the
Pipeline Lease Agreement and the successor-in-interest to all of Navajo’s rights, interests, and
obligations under the Pipeline Lease Agreement.

     C. Effective July 31, 2000, Alon became the successor-in-interest to all of American
Petrofina’s rights, interests, and obligations under the Pipeline Lease Agreement.

     D. HEP and Alon desire to amend and supplement certain provisions of the Pipeline Lease
Agreement that address leased pipeline capacity, lease terms, and rent.

     NOW, THEREFORE, in exchange for the mutual covenants and other considerations described in
this Amendment, the receipt and sufficiency of which are hereby acknowledged, HEP and Alon agree as
follows:

     1. Definitions. As used in this Amendment, the term the “pipeline” shall have the
meaning ascribed to such term in Recital Paragraph A of the Pipeline Lease Agreement. All other
terms used, but not otherwise defined in this Amendment, shall have the meanings ascribed to such
terms in the Pipeline Lease Agreement.

     2. Recitals Paragraphs. The Parties acknowledge and agree that the recital
paragraphs above are an integral part of this Amendment.

     3. Amendment to Initial Lease. The Parties acknowledge that, prior to this
Amendment, the Initial Lease was for a lease of an undivided interest in the capacity of the
pipeline equal to 7,500 barrels per day, and that the Initial Lease Term would expire on August 31,
2008. The Parties agree that, effective September 1, 2007 (hereinafter referred to as the
“Amendment Date”), the Initial Lease is amended such that, from the Amendment Date, the Initial
Lease shall be a lease of an undivided interest in the capacity of the pipeline equal to 5,000
barrels per day. The Parties further agree that the Initial Lease Term is amended such that the
expiration of the Initial Lease Term shall occur on August 31, 2018. The Parties acknowledge and
agree that the Initial Lease Renewal Option provided for in Section 4.A.2 of the Pipeline Lease
Agreement shall continue to exist following the Amendment Date, but that

 

 

the second sentence of Section 4.A.2 of the Pipeline Lease Agreement shall be amended to read as
follows: “Lessee may exercise the Initial Lease Renewal Option by delivering Lessor written notice
of the exercise of the Initial Lease Renewal Option no later than August 31, 2017.”

     4. Option for Expansion Lease. Prior to the expiration of the Initial Lease Term (as
amended in the immediately preceding section of this Amendment), Alon shall have the option to
lease an additional undivided interest in the capacity of the pipeline equal to 2,500 barrels per
day. The option described in the preceding sentence shall be hereinafter referred to as the
“Expansion Option.” In order to exercise the Expansion Option, Alon shall provide HEP with notice
of the exercise of such option at least sixty (60) days in advance of the date on which Alon
desires to commence the additional lease (hereinafter referred to as the “Expansion Lease”) of an
additional undivided interest in the capacity of the pipeline equal to 2,500 barrels per day . The
commencement date of the term of any such Expansion Lease shall be hereinafter referred to as the
“Expansion Date,” and must be on the first day of a calendar month. In the event that Alon
exercises the Expansion Option, the term of the Expansion Lease shall commence on the Expansion
Date and expire on the last day of the calendar month that immediately precedes the tenth
(10th) anniversary of the Expansion Date. For the sake of clarity, the Expansion Lease
provided for in this Section 4 of the Amendment would be in addition to the Initial Lease (as
amended in this Amendment), the Second Lease, and the Option Lease provided for in the Pipeline
Lease Agreement.

     5. Amendments to Rent Amount. Effective on the Amendment Date, the Base Rent and the
Rent Amount for the Initial Lease shall be reduced to the amounts that are two-thirds the Base Rent
and Rent Amount, respectively, that were in effect for the Initial Lease on July 31, 2007. In the
event that Alon exercises the Expansion Option, Alon shall pay to HEP rent for the Expansion Lease,
in monthly installments in advance, beginning on the Expansion Date, as follows: The Base Rent and
the Rent Amount for the Expansion Lease shall, effective on the Expansion Date, be equal to the
amounts that are fifty percent (50%) of the Base Rent and Rent Amount, respectively, in effect for
the Initial Lease during the month when the Expansion Date occurs. The Rent Amount for the Initial
Lease, the Second Lease, the Option Lease, and any Expansion Lease shall be adjusted on each
anniversary of the Execution Month as provided in Section 5.B of the Pipeline Lease Agreement
(which is entitled “Base Rent Adjuster”).

     6. Exercise of Second Lease Renewal Option. Pursuant to Section 4(B)(2) of the
Pipeline Lease Agreement (which is entitled “Option to Renew”), Alon hereby exercises the
Second Lease Renewal Option, and the Second Lease Renewal Term shall expire on July 31, 2020.

     7. Deletion of Section 24. Section 24 of the Pipeline Lease Agreement (which is
entitled “EARLIER TERMINATION”) is hereby deleted in its entirety from the Pipeline Lease
Agreement.

     8. Effect of Amendment. Except as provided herein, all of the provisions of the
Pipeline Lease Agreement shall be and remain in full force and effect.

 

 

     IN WITNESS WHEREOF, HEP and Alon have caused this Amendment to be executed effective as of
August 31, 2007.

	 	 	 	 	 
	 	 	HEP PIPELINE ASSETS, LIMITED PARTNERSHIP
	 
	 	 	 	 
	 

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

its General Partner,
	 
	 	 	 	 
	 

	 	By:
	 	Holly Energy Partners — Operating, L.P.

its Sole Member

	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	David G. Blair

Senior Vice President
	 
	 	 	 	 
	 	 	ALON USA, LP
	 
	 	 	 	 
	 

	 	By:
	 	ALON USA, GP, LLC, a Delaware limited liability company, its

General Partner
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:exv10w9

 

EXHIBIT 10.9

FIRST AMENDMENT TO

EMPLOYMENT AGREEMENT

     THIS FIRST AMENDMENT TO EMPLOYMENT AGREEMENT (“First Amendment”) is entered into by and
between Concho Resources Inc., a Delaware corporation (“Company”), and David M. Thomas, III
(“Executive”) as of August 21, 2007.

     WHEREAS, Company and Executive have heretofore entered into that certain Employment Agreement
effective as of June 1, 2006 (the “Employment Agreement”); and

     WHEREAS, Company and Executive desire to amend the Employment Agreement in certain respects;

     NOW, THEREFORE, in consideration of the premises set forth above and the mutual agreements set
forth herein, Company and Executive hereby agree, effective as of the date first set forth above,
that the Employment Agreement shall be amended as hereafter provided:

     1. Section 5.3(a) of the Employment Agreement shall be deleted and the following shall be
substituted therefor:

     “(a) (i) if the Change of Control relating to such Change of Control Period
constitutes a change in control event (as defined in Treasury regulation section
1.409A-3(i)(5)), pay Executive a lump sum cash payment in an amount equal to two times
Executive’s Annual Base Salary on or before the fifth day after the last day of
Executive’s employment with Company, or (ii) if the Change of Control relating to such
Change of Control Period does not constitute a change in control event (as defined in
Treasury regulation section 1.409A-3(i)(5)), pay Executive an amount equal to two
times the Monthly Severance Amount on the last day of each month throughout the
12-month period commencing on the date of such Involuntary Termination;”

     2. The first sentence of Section 5.6 of the Employment Agreement is deleted and the following
shall be substituted therefor:

     “As a condition to the receipt of any severance compensation and benefits under
this Agreement, Executive must first execute a release and agreement, in a form
reasonably satisfactory to Company, which (1) shall release and discharge Company and
its affiliates, and their officers, directors, employees and agents from any and all
claims or causes of action of any kind or character, including but not limited to all
claims or causes of action arising out of Executive’s employment with Company or its
affiliates or the termination of such employment, and (2) must be effective and
irrevocable within 55 days after the termination of Executive’s employment.”

     3. The following shall be added to the end of Section 5.7 of the Employment Agreement:

     “Executive hereby agrees to be bound by Company’s determination of its “specified
employees” (as such term is defined in Section 409A of the Code) in accordance with
any of the methods permitted under the regulations issued under Section 409A of the
Code. The provisions of this Section 5.7 shall also apply, to the extent required
under Section 409A of the Code, to any payment of the Monthly Severance Amount to
Executive pursuant to Section 7.1(b).”

     4. The following shall be added to the end of Section 8.1 of the Employment Agreement:

“Any reimbursement of reasonable attorneys’ fees and disbursements required under this
Section 8.1 shall be made not later than the close of Executive’s taxable year
following the taxable year in which Executive incurs the expense; provided, however,
that, upon Executive’s termination of employment with Company, in no event shall any
additional reimbursement be made prior to the date that is six months after the date
of Executive’s termination of employment to the extent such payment delay is required
under Section 409A(a)(2)(B)(i) of the Code. In no event shall any reimbursement be
made to Executive for such fees and disbursements incurred after the later of (1)
Executive’s death or (2) the date that is 10 years after the date of Executive’s
termination of employment with Company.”

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     5. This First Amendment (a) shall supersede any prior agreement between Company and Executive
relating to the subject matter of this First Amendment and (b) shall be binding upon and inure to
the benefit of the parties hereto and any successors to Company and all persons lawfully claiming
under Executive.

     6. Except as expressly modified by this First Amendment, the terms of the Employment Agreement
shall remain in full force and effect and are hereby confirmed and ratified.

     [Signatures begin on the following page.]

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     IN WITNESS WHEREOF, the parties hereto have executed and delivered this First Amendment on
August 31, 2007, but effective as of the date first set forth above.

	 	 	 	 	 	 	 	 	 
	“EXECUTIVE”	 	 	 	“COMPANY”	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	CONCHO RESOURCES INC.	 	 
	 
	 	 	 	 	 	 	 	 
	   /s/ David M. Thomas, III
 

David M. Thomas, III

	 	 	 	By:
	 	  /s/ David W. Copeland
 

David W. Copeland, Vice President
	 	 

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