Document:

exv10w1

Exhibit 10.1

 

$10,000,000 Revolving Credit Facility,

$73,361,111.02 Refinancing Term Loan

and

$10,000,000 Additional Term Loan

AMENDED AND RESTATED CREDIT AGREEMENT

dated as of December 30, 2010,

by and among

SOUTHWEST CONVENIENCE STORES, LLC

and

SKINNY’S, LLC,

as the Borrowers,

and

GTS LICENSING COMPANY, INC.,

as a Subsidiary Guarantor

the Lenders referred to herein,

as Lenders,

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent,

Swingline Lender and Issuing Lender

and

WELLS FARGO SECURITIES, LLC,

as Sole Lead Arranger and Sole Book Manager

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	6	 
	SECTION 1.1 Definitions
	 	 	6	 
	SECTION 1.2 Other Definitions and Provisions
	 	 	30	 
	SECTION 1.3 Accounting Terms
	 	 	31	 
	SECTION 1.4 UCC Terms
	 	 	31	 
	SECTION 1.5 Rounding
	 	 	31	 
	SECTION 1.6 References to Agreement and Laws
	 	 	31	 
	SECTION 1.7 Times of Day
	 	 	32	 
	SECTION 1.8 Letter of Credit Amounts
	 	 	32	 
	 
	 	 	 	 
	ARTICLE II REVOLVING CREDIT FACILITY
	 	 	32	 
	SECTION 2.1 Revolving Credit Loans
	 	 	32	 
	SECTION 2.2 Swingline Loans
	 	 	32	 
	SECTION 2.3 Procedure for Advances of Revolving Credit Loans and Swingline Loans
	 	 	34	 
	SECTION 2.4 Repayment and Prepayment of Revolving Credit Loans and Swingline Loans
	 	 	35	 
	SECTION 2.5 Permanent Reduction of the Revolving Credit Commitment
	 	 	36	 
	SECTION 2.6 Termination of Revolving Credit Facility
	 	 	36	 
	 
	 	 	 	 
	ARTICLE III LETTER OF CREDIT FACILITY
	 	 	37	 
	SECTION 3.1 L/C Commitment
	 	 	37	 
	SECTION 3.2 Procedure for Issuance of Letters of Credit
	 	 	37	 
	SECTION 3.3 Commissions and Other Charges
	 	 	38	 
	SECTION 3.4 L/C Participations
	 	 	38	 
	SECTION 3.5 Reimbursement Obligation of the Borrowers
	 	 	39	 
	SECTION 3.6 Obligations Absolute
	 	 	40	 
	SECTION 3.7 Effect of Letter of Credit Application
	 	 	40	 
	 
	 	 	 	 
	ARTICLE IV TERM LOAN FACILITY
	 	 	40	 
	SECTION 4.1 Term Loans
	 	 	40	 
	SECTION 4.2 Procedure for Advance of Term Loans
	 	 	41	 
	SECTION 4.3 Repayment of Term Loans
	 	 	41	 
	SECTION 4.4 Prepayments of Term Loans
	 	 	42	 
	 
	 	 	 	 
	ARTICLE V GENERAL LOAN PROVISIONS
	 	 	43	 
	SECTION 5.1 Interest
	 	 	43	 
	SECTION 5.2 Notice and Manner of Conversion or Continuation of Loans
	 	 	44	 
	SECTION 5.3 Fees
	 	 	45	 
	SECTION 5.4 Manner of Payment
	 	 	45	 
	SECTION 5.5 Evidence of Indebtedness
	 	 	46	 
	SECTION 5.6 Adjustments
	 	 	47	 
	SECTION 5.7 Obligations of Lenders
	 	 	48	 
	SECTION 5.8 Changed Circumstances
	 	 	48	 
	SECTION 5.9 Indemnity
	 	 	49	 
	SECTION 5.10 Increased Costs
	 	 	50	 
	SECTION 5.11 Taxes
	 	 	51	 
	SECTION 5.12 Mitigation Obligations; Replacement of Lenders
	 	 	53	 
	SECTION 5.13 Guaranties and Security
	 	 	54	 
	SECTION 5.14 The Borrower Agent
	 	 	54	 

AMENDED AND RESTATED CREDIT AGREEMENT — Page i

 

 

	 	 	 	 	 
	 	 	 	 
	ARTICLE VI CONDITIONS OF CLOSING AND BORROWING
	 	 	54	 
	SECTION 6.1 Conditions to Closing and Initial Extensions of Credit
	 	 	54	 
	SECTION 6.2 Conditions to All Extensions of Credit
	 	 	58	 
	 
	 	 	 	 
	ARTICLE VII REPRESENTATIONS AND WARRANTIES OF THE CREDIT PARTIES
	 	 	58	 
	SECTION 7.1 Organization; Powers
	 	 	59	 
	SECTION 7.2 Authorization; Enforceability
	 	 	59	 
	SECTION 7.3 Governmental Approvals; No Conflicts
	 	 	59	 
	SECTION 7.4 Financial Condition; No Material Adverse Change
	 	 	59	 
	SECTION 7.5 Properties
	 	 	60	 
	SECTION 7.6 Litigation and Environmental Matters
	 	 	60	 
	SECTION 7.7 Compliance with Laws and Agreements
	 	 	60	 
	SECTION 7.8 Investment and Holding Company Status
	 	 	61	 
	SECTION 7.9 Taxes
	 	 	61	 
	SECTION 7.10 ERISA
	 	 	61	 
	SECTION 7.11 Disclosure
	 	 	61	 
	SECTION 7.12 Indebtedness
	 	 	61	 
	SECTION 7.13 Subsidiaries
	 	 	61	 
	SECTION 7.14 Inventory
	 	 	62	 
	SECTION 7.15 Patents, Trademarks and Copyrights
	 	 	62	 
	SECTION 7.16 Margin Securities
	 	 	62	 
	SECTION 7.17 Labor Matters
	 	 	62	 
	SECTION 7.18 Solvency
	 	 	63	 
	SECTION 7.19 Permits, Licenses, Etc.
	 	 	63	 
	SECTION 7.20 Senior Indebtedness Status
	 	 	63	 
	SECTION 7.21 OFAC
	 	 	63	 
	 
	 	 	 	 
	ARTICLE VIII FINANCIAL INFORMATION AND NOTICES
	 	 	63	 
	SECTION 8.1 Financial Statements and Projections
	 	 	63	 
	SECTION 8.2 Officer’s Compliance Certificate
	 	 	64	 
	SECTION 8.3 [Intentionally omitted.]
	 	 	64	 
	SECTION 8.4 Other Reports
	 	 	64	 
	SECTION 8.5 Notices of Material Events
	 	 	65	 
	SECTION 8.6 Accuracy of Information
	 	 	66	 
	 
	 	 	 	 
	ARTICLE IX AFFIRMATIVE COVENANTS
	 	 	66	 
	SECTION 9.1 Existence; Conduct of Business
	 	 	66	 
	SECTION 9.2 Payment of Obligations
	 	 	66	 
	SECTION 9.3 Maintenance of Properties
	 	 	66	 
	SECTION 9.4 Books and Records; Inspection Rights
	 	 	66	 
	SECTION 9.5 Insurance
	 	 	67	 
	SECTION 9.6 Compliance with Laws
	 	 	67	 
	SECTION 9.7 Use of Proceeds
	 	 	67	 
	SECTION 9.8 Compliance with Agreements
	 	 	67	 
	SECTION 9.9 Additional Subsidiaries and Real Property
	 	 	67	 
	SECTION 9.10 Environmental Matters
	 	 	68	 
	SECTION 9.11 Further Assurances
	 	 	68	 
	SECTION 9.12 Collateral
	 	 	69	 
	SECTION 9.13 Non-Consolidation
	 	 	70	 
	 
	 	 	 	 
	ARTICLE X FINANCIAL COVENANTS
	 	 	70	 

AMENDED AND RESTATED CREDIT AGREEMENT — Page ii

 

 

	 	 	 	 	 
	 	 	 	 
	SECTION 10.1 Consolidated Total Leverage Ratio
	 	 	70	 
	SECTION 10.2 Fixed Charge Coverage Ratio
	 	 	70	 
	 
	 	 	 	 
	ARTICLE XI NEGATIVE COVENANTS
	 	 	70	 
	SECTION 11.1 Indebtedness
	 	 	70	 
	SECTION 11.2 Liens
	 	 	71	 
	SECTION 11.3 Fundamental Changes
	 	 	72	 
	SECTION 11.4 Investments, Loans, Advances, Guarantees and Acquisitions
	 	 	73	 
	SECTION 11.5 Hedging Agreements
	 	 	74	 
	SECTION 11.6 Restricted Payments; Certain Payments of Indebtedness
	 	 	74	 
	SECTION 11.7 Transactions with Affiliates
	 	 	74	 
	SECTION 11.8 Restrictive Agreements
	 	 	75	 
	SECTION 11.9 Disposition of Assets
	 	 	75	 
	SECTION 11.10 Sale and Leaseback
	 	 	76	 
	SECTION 11.11 Accounting
	 	 	76	 
	SECTION 11.12 Amendment of Material Documents
	 	 	76	 
	SECTION 11.13 Preferred Equity Interests
	 	 	76	 
	SECTION 11.14 Synthetic Leases
	 	 	76	 
	 
	 	 	 	 
	ARTICLE XII DEFAULT AND REMEDIES
	 	 	76	 
	SECTION 12.1 Events of Default
	 	 	76	 
	SECTION 12.2 Remedies
	 	 	79	 
	SECTION 12.3 Rights and Remedies Cumulative; Non-Waiver; etc.
	 	 	80	 
	SECTION 12.4 Crediting of Payments and Proceeds
	 	 	80	 
	SECTION 12.5 Administrative Agent May File Proofs of Claim
	 	 	81	 
	 
	 	 	 	 
	ARTICLE XIII THE ADMINISTRATIVE AGENT
	 	 	81	 
	SECTION 13.1 Appointment and Authority
	 	 	81	 
	SECTION 13.2 Rights as a Lender
	 	 	82	 
	SECTION 13.3 Exculpatory Provisions
	 	 	82	 
	SECTION 13.4 Reliance by the Administrative Agent
	 	 	83	 
	SECTION 13.5 Delegation of Duties
	 	 	83	 
	SECTION 13.6 Resignation of Administrative Agent
	 	 	83	 
	SECTION 13.7 Non-Reliance on Administrative Agent and Other Lenders
	 	 	84	 
	SECTION 13.8 No Other Duties, etc.
	 	 	84	 
	SECTION 13.9 Collateral and Guaranty Matters
	 	 	84	 
	SECTION 13.10 Release of Liens and Guarantees of Subsidiaries
	 	 	85	 
	SECTION 13.11 Specified Cash Management Arrangements and Specified Hedge Agreements
	 	 	85	 
	 
	 	 	 	 
	ARTICLE XIV MISCELLANEOUS
	 	 	86	 
	SECTION 14.1 Notices
	 	 	86	 
	SECTION 14.2 Amendments, Waivers and Consents
	 	 	88	 
	SECTION 14.3 Expenses; Indemnity
	 	 	89	 
	SECTION 14.4 Right of Set Off
	 	 	91	 
	SECTION 14.5 Governing Law; Jurisdiction, Etc.
	 	 	92	 
	SECTION 14.6 Waiver of Jury Trial
	 	 	92	 
	SECTION 14.7 Reversal of Payments
	 	 	93	 
	SECTION 14.8 Injunctive Relief; Punitive Damages
	 	 	93	 
	SECTION 14.9 [Intentionally omitted.]
	 	 	93	 
	SECTION 14.10 Successors and Assigns; Participations
	 	 	93	 
	SECTION 14.11 Confidentiality
	 	 	96	 

AMENDED AND RESTATED CREDIT AGREEMENT — Page iii

 

 

	 	 	 	 	 
	 	 	 	 
	SECTION 14.12 Performance of Duties
	 	 	97	 
	SECTION 14.13 All Powers Coupled with Interest
	 	 	97	 
	SECTION 14.14 Survival
	 	 	97	 
	SECTION 14.15 Titles and Captions
	 	 	97	 
	SECTION 14.16 Severability of Provisions
	 	 	98	 
	SECTION 14.17 Counterparts; Integration; Effectiveness; Electronic Execution
	 	 	98	 
	SECTION 14.18 Term of Agreement
	 	 	98	 
	SECTION 14.19 USA Patriot Act
	 	 	98	 
	SECTION 14.20 [Intentionally omitted.]
	 	 	99	 
	SECTION 14.21 Independent Effect of Covenants
	 	 	99	 
	SECTION 14.22 Amendment and Restatement; No Novation
	 	 	99	 
	SECTION 14.23 Inconsistencies with Other Documents
	 	 	99	 

AMENDED AND RESTATED CREDIT AGREEMENT — Page iv

 

 

EXHIBITS

	 	 	 	 	 

	Exhibit A-1

	 	—
	 	Form of Revolving Credit Note
	Exhibit A-2

	 	—
	 	Form of Swingline Note
	Exhibit A-3

	 	—
	 	Form of Refinancing Term Loan Note
	Exhibit A-4

	 	—
	 	Form of Additional Term Loan Note
	Exhibit B

	 	—
	 	Form of Notice of Borrowing
	Exhibit C

	 	—
	 	Form of Notice of Account Designation
	Exhibit D

	 	—
	 	Form of Notice of Prepayment
	Exhibit E

	 	—
	 	Form of Notice of Conversion/Continuation
	Exhibit F

	 	—
	 	Form of Officer’s Compliance Certificate
	Exhibit G

	 	—
	 	Form of Assignment and Assumption
	Exhibit H

	 	—
	 	Form of Alon Guaranty Agreement
	Exhibit I

	 	—
	 	Form of Subsidiary Guaranty Agreement
	Exhibit J

	 	—
	 	Form of Security Agreement
	Exhibit K

	 	—
	 	Form of Joinder Agreement
	Exhibit L

	 	—
	 	Form of Borrowing Base Certificate
	Exhibit M

	 	—
	 	Form of Contribution and Indemnity Agreement

SCHEDULES

	 	 	 	 	 

	Schedule 1.1

	 	—
	 	Commitments
	Schedule 7.1

	 	—
	 	Jurisdictions of Organization and Qualification
	Schedule 7.5

	 	—
	 	Real Property
	Schedule 7.6

	 	—
	 	Litigation and Related Matters
	Schedule 7.10

	 	—
	 	ERISA Plans
	Schedule 7.12

	 	—
	 	Existing Indebtedness
	Schedule 7.13

	 	—
	 	Subsidiaries and Capitalization
	Schedule 7.15

	 	—
	 	Intellectual Property
	Schedule 11.2

	 	—
	 	Existing Liens
	Schedule 11.8

	 	—
	 	Existing Restrictive Agreements
	Schedule 11.9

	 	—
	 	Transferable Stores

AMENDED AND RESTATED CREDIT AGREEMENT — Page v

 

 

     AMENDED AND RESTATED CREDIT AGREEMENT, dated as of December 30, 2010, by and among SOUTHWEST
CONVENIENCE STORES, LLC, a Texas limited liability company (“Southwest”), SKINNY’S, LLC, a
Texas limited liability company (“Skinny’s” and, together with Southwest, each a
“Borrower” and collectively the “Borrowers”), GTS LICENSING COMPANY, INC., a Texas
corporation (“GTS”), the additional Subsidiaries of any Borrower who may become a party to
this Agreement from time to time pursuant to the terms hereof, the lenders who are party to this
Agreement and the lenders who may become a party to this Agreement pursuant to the terms hereof
(collectively with the lenders party hereto, the “Lenders”) and WELLS FARGO BANK, NATIONAL
ASSOCIATION, a national banking association, as Administrative Agent for the Lenders.

STATEMENT OF PURPOSE

     Reference is made to that certain Amended and Restated Credit Agreement dated as of June 29,
2007, among Southwest, Wachovia and Bank Leumi USA, as lenders, and Wachovia as administrative
agent for such lenders, as amended from time to time prior hereto (the “Existing Credit
Agreement”), pursuant to which such lenders made a term loan to Southwest in the aggregate
principal amount of $95,000,000 (the “Existing Term Loan”). The aggregate outstanding
principal amount of the Existing Term Loan as of the Closing Date is $73,361,111.02. Wachovia was
previously merged with and into Wells Fargo (the surviving entity in such merger), and Wells Fargo
has succeeded to all rights and obligations of Wachovia (as a lender and as administrative agent)
under the Existing Credit Agreement and the other “Loan Documents” as defined therein.

     The parties hereto now desire to refinance the Existing Term Loan with a term loan facility to
the Borrowers and to provide for a $10,000,000 revolving credit facility and an additional
$10,000,000 term loan facility to the Borrowers, in each case pursuant to this Agreement (which
shall constitute an amendment and restatement of the Existing Credit Agreement) and the other Loan
Documents.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties hereto, such parties hereby agree as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.1 Definitions. The following terms when used in this Agreement shall have
the meanings assigned to them below:

     “Accounts” means as such term is defined in the UCC.

     “Act” means the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October
26, 2001)), as amended.

     “Additional Term Loan” means the term loan to be made to the Borrowers pursuant to
Section 4.1(b).

     “Additional Term Loan Commitment” means (a) as to any Lender, the obligation of such
Lender to make a portion of the Additional Term Loan for the account of the Borrowers hereunder on
the Closing Date in an aggregate principal amount not to exceed the amount set forth opposite such
Lender’s name on the Register and (b) as to all Lenders, the aggregate commitment of all

SCHEDULE 11.9 — Solo Page

 

 

Lenders to make such Additional Term Loan. The Additional Term Loan Commitment of each Lender
on the Closing Date is as set forth on Schedule 1.1 hereto and the Additional Term Loan
Commitment of all Lenders on the Closing Date shall be $10,000,000.

     “Additional Term Loan Facility” means the term loan facility established pursuant to
Section 4.1(b).

     “Additional Term Loan Lender” means any Lender with an Additional Term Loan
Commitment.

     “Additional Term Loan Maturity Date” means the first to occur of (a) the Scheduled
Maturity Date, or (b) the date of acceleration of the Additional Term Loan pursuant to Section
12.2(a).

     “Additional Term Loan Note” means a promissory note made by the Borrowers in favor of
an Additional Term Loan Lender evidencing the portion of the Additional Term Loan made by such
Additional Term Loan Lender, substantially in the form attached as Exhibit A-4, and any amendments,
supplements and modifications thereto, any substitutes therefor and any replacements, restatements,
renewals or extension thereof, in whole or in part.

     “Additional Term Loan Percentage” means, as to any Additional Term Loan Lender, after
the Additional Term Loan is made hereunder, the ratio of (a) the outstanding principal balance of
such Additional Term Loan of such Lender to (b) the aggregate outstanding principal balance of the
Additional Term Loan of all such Lenders.

     “Administrative Agent” means Wells Fargo, in its capacity as Administrative Agent
hereunder, and any successor thereto appointed pursuant to Section 13.6.

     “Administrative Agent’s Office” means the office of the Administrative Agent specified
in or determined in accordance with the provisions of Section 14.1(c).

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

     “Affiliate” means, with respect to any Person, any other Person which directly or
indirectly through one or more intermediaries, controls, or is controlled by, or is under common
control with, such first Person or any of its Subsidiaries. The term “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, the ability to exercise
voting power, by contract or otherwise. The terms “controlling” and “controlled” have meanings
correlative thereto.

     “Agreement” means this Credit Agreement, as amended, restated, supplemented or
otherwise modified from time to time.

     “Alon Guaranty Agreement” means the unconditional guaranty agreement of even date
herewith executed by Alon USA Energy and Alon Brands in favor of the Administrative Agent, for the
ratable benefit and the Secured Parties, substantially in the form attached as Exhibit H, as
amended, restated, supplemented or otherwise modified from time to time.

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

AMENDED AND RESTATED CREDIT AGREEMENT — Page 7

 

 

     “Applicable Law” means all applicable provisions of constitutions, laws, statutes,
ordinances, rules, treaties, regulations, permits, licenses, approvals, interpretations and orders
of courts or Governmental Authorities and all orders and decrees of all courts and arbitrators.

     “Applicable Margin” means the corresponding percentages per annum as set forth below
based on the Class of Loans and the interest rate option applicable thereto:

	 	 	 	 	 	 	 	 	 	 	 
	Revolving Credit Loans	 	Refinancing Term Loan	 	Additional Term Loan
	LIBOR
	 	Base Rate
	 	LIBOR
	 	Base Rate
	 	LIBOR
	 	Base Rate
	+2.75%
	 	+1.75%
	 	+2.00%.
	 	+1.00%
	 	+2.75%
	 	+1.75%

     “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.

     “Arranger” means Wells Fargo Securities, LLC, in its capacity as sole lead arranger
and sole book manager, and its successors.

     “Asset Disposition” means the disposition of any or all of the assets of (including,
without limitation, any Capital Stock owned by) any Credit Party or any Subsidiary thereof, whether
by sale, lease, transfer or otherwise. The term “Asset Disposition” shall not include any Equity
Issuance.

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

     “Attributable Indebtedness” means, on any date of determination, (a) in respect of any
Capital Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of
such Person prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic
Lease, the capitalized amount or principal amount of the remaining lease payments under the
relevant lease that would appear on a balance sheet of such Person prepared as of such date in
accordance with GAAP if such lease were accounted for as a Capital Lease.

     “Base Rate” means, at any time, the higher of (a) the Prime Rate, and (b) the Federal
Funds Rate plus 0.50%; each change in the Base Rate shall take effect simultaneously with
the corresponding change or changes in the Prime Rate or the Federal Funds Rate for such Interest
Period (determined daily on each Business Day).

     “Base Rate Loan” means any Loan bearing interest at a rate based upon the Base Rate as
provided in Section 5.1(a).

     “Borrower” or “Borrowers” has the meaning assigned thereto in the introductory
paragraph hereto.

     “Borrower Agent” means Southwest in its capacity as agent for the Borrowers and the
other Credit Parties pursuant to Section 5.14.

     “Borrower Materials” has the meaning assigned thereto in Section 8.5.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 8

 

 

     “Borrowing Base” means, on any date of determination and subject to Section
8.4(d), an amount equal to (i) 80% of Eligible Accounts plus (ii) 60% of Eligible Inventory, as
determined in accordance with Section 8.4(d).

     “Borrowing Base Certificate” means a certificate, substantially in form attached as
Exhibit L, by which the Borrowers certify calculation of the Borrowing Base.

     “Business Day” means (a) for all purposes other than as set forth in clause (b) below,
any day other than a Saturday, Sunday or legal holiday on which banks in Dallas, Texas are open for
the conduct of their commercial banking business, and (b) with respect to all notices and
determinations in connection with, and payments of principal and interest on, any LIBOR Rate Loan,
or any Base Rate Loan as to which the interest rate is determined by reference to LIBOR, any day
that is a Business Day described in clause (a) above and that is also a day for trading by
and between banks in Dollar deposits in the London interbank market.

     “Capital Asset” means, with respect to the Borrowers and their Subsidiaries, any asset
that should, in accordance with GAAP, be classified and accounted for as a capital asset on a
Consolidated balance sheet of the Borrowers and their Subsidiaries.

     “Capital Expenditures” means, with respect to the Borrowers and their Subsidiaries for
any period, the aggregate cost of all Capital Assets acquired by the Borrowers and their
Subsidiaries during such period, as determined in accordance with GAAP.

     “Capital Lease” means any lease of any property by a Borrower or any of its
Subsidiaries, as lessee, that should, in accordance with GAAP, be classified and accounted for as a
capital lease on a Consolidated balance sheet of the Borrowers and their Subsidiaries.

     “Capital Stock” means (a) in the case of a corporation, capital stock, (b) in the case
of an association or business entity, any and all shares, interests, participations, rights or
other equivalents (however designated) of capital stock, (c) in the case of a partnership,
partnership interests (whether general or limited), (d) in the case of a limited liability company,
membership interests, (e) any other interest or participation that confers on a Person the right to
receive a share of the profits and losses of, or distributions of assets of, the issuing Person and
(f) any and all warrants, rights or options to purchase any of the foregoing.

     “Cash Equivalents” means, collectively, (a) marketable direct obligations issued or
unconditionally guaranteed by the United States or any agency thereof maturing within one hundred
eighty (180) days from the date of acquisition thereof, (b) commercial paper maturing no more than
one hundred eighty (180) days from the date of creation thereof and currently having the highest
rating obtainable from either S&P or Moody’s, (c) certificates of deposit maturing no more than one
hundred eighty (180) days from the date of creation thereof issued by commercial banks incorporated
under the laws of the United States or any State thereof, each having combined capital, surplus and
undivided profits of not less than $500,000,000; provided that the aggregate amount
invested in such certificates of deposit shall not at any time exceed $5,000,000 for any one such
certificate of deposit and $10,000,000 for any one such bank, or (d) time deposits maturing no more
than thirty (30) days from the date of creation thereof with commercial banks or savings banks or
savings and loan associations each having membership either in the FDIC or the deposits of which
are insured by the FDIC and in amounts not exceeding the maximum amounts of insurance thereunder.

     “Change in Control” means an event or series of events by which:

AMENDED AND RESTATED CREDIT AGREEMENT — Page 9

 

 

     (a) at any time, the Parent shall fail to own at least seventy percent (70%) of the Capital
Stock of each of the Borrowers, or Southwest shall fail to own one hundred percent (100%) of the
Capital Stock of each of the Subsidiary Guarantors in existence on the Closing Date; or

     (b) prior to an IPO, Alon USA Energy shall fail to own (directly or indirectly through various
subsidiaries) at least fifty-one percent (51%) of the entire economic and voting rights associated
with all outstanding Capital Stock of all classes of the Parent; or

     (c) after an IPO, any “person” or “group” (as such terms are used in Sections 13(d)
and 14(d) of the Securities Exchange Act of 1934, as amended, but excluding any employee
benefit plan of such person or its Subsidiaries, and any person or entity acting in its capacity as
trustee, agent or other fiduciary or administrator of any such plan), other than Alon USA Energy
and its subsidiaries, becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the
Securities Exchange Act of 1934, as amended, except that a “person” or “group” shall be deemed to
have “beneficial ownership” of all securities that such “person” or “group” has the right to
acquire, whether such right is exercisable immediately or only after the passage of time (such
right, an “option right”)), directly or indirectly, of more of the Capital Stock of the Parent
entitled to vote for members of the board of directors (or equivalent governing body) of the Parent
on a fully diluted basis (and taking into account all such securities that such “person” or “group”
has the right to acquire pursuant to any option right) than the amount of the Capital Stock of the
Parent beneficially owned by Alon USA Energy.

     “Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change
in any law, rule, regulation or treaty or in the administration, interpretation or application
thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or
directive (whether or not having the force of law) by any Governmental Authority.

     “Class” means, when used in reference to any Loan, whether such Loan is a Revolving
Credit Loan, a Swingline Loan or a Term Loan and, when used in reference to any Commitment, whether
such Commitment is a Revolving Credit Commitment or a Term Loan Commitment.

     “Closing Date” means the date of this Agreement or such later Business Day upon which
each condition described in Section 6.1 shall be satisfied or waived in all respects in a
manner acceptable to the Administrative Agent.

     “Code” means the Internal Revenue Code of 1986, and the rules and regulations
thereunder, each as amended or modified from time to time.

     “Collateral” means the collateral security for the Obligations pledged or granted
pursuant to the Security Documents.

     “Commitment Fee” has the meaning assigned thereto in Section 5.3(a).

     “Commitment Percentage” means, as to any Lender, such Lender’s Revolving Credit
Commitment Percentage, Refinancing Term Loan Percentage or Additional Term Loan Percentage, as
applicable.

     “Commitments” means, collectively, as to all Lenders, the Revolving Credit Commitment,
the LC Commitment, the Refinancing Term Loan Commitment and the Additional Term Loan Commitment.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 10

 

 

     “Consolidated” means, when used with reference to financial statements or financial
statement items of any Person, such statements or items on a consolidated basis (or, in the case of
the Borrowers and their Subsidiaries, combined basis) in accordance with applicable principles of
consolidation under GAAP.

     “Consolidated EBITDA” means, for any period, the sum of the following determined on a
Consolidated basis, without duplication, for the Borrowers and their Subsidiaries in accordance
with GAAP: (a) Consolidated Net Income for such period, plus (b) the sum of the following,
without duplication, to the extent deducted in determining Consolidated Net Income: (i) income,
franchise and other taxes, (ii) Consolidated Interest Expense, (iii) amortization, depreciation and
other non-cash charges (except to the extent that such non-cash charges are reserved for cash
charges to be taken in the future), (iv) minority equity interests holders’ interest in income of
subsidiaries of such Person, and (v) extraordinary losses (excluding extraordinary losses from
discontinued operations), minus (c) interest income and any extraordinary gains.

     “Consolidated EBITDAR” means, for any period, the sum of the following determined on a
Consolidated basis, without duplication, for Borrowers and their Subsidiaries in accordance with
GAAP: (a) Consolidated Net Income for such period, plus (b) the sum of the following,
without duplication, to the extent deducted in determining Consolidated Net Income: (i) income,
franchise and other taxes, (ii) Consolidated Interest Expense, (iii) amortization, depreciation and
other non-cash charges (except to the extent that such non-cash charges are reserved for cash
charges to be taken in the future), (iv) rent expense, (v) minority equity interests holders’
interest in income of subsidiaries of such Person, and (vi) extraordinary losses (excluding
extraordinary losses from discontinued operations), minus (c) interest income and any
extraordinary gains.

     “Consolidated Fixed Charges” means, for any period, the sum of the following
determined on a Consolidated basis for such period, without duplication, for the Borrowers and
their Subsidiaries in accordance with GAAP: (a) Consolidated Interest Expense during such period
(but excluding interest expense accrued but not paid on Subordinated Indebtedness payable to the
Parent or Alon USA Energy), and (b) principal payments of Indebtedness scheduled to be paid during
such period with respect to Indebtedness.

     “Consolidated Fixed Charges Coverage Ratio” means, as of any date of determination,
the ratio of (a) Consolidated EBITDA for the period of four (4) consecutive Fiscal Quarters ending
on or immediately prior to such date minus federal, state, local and foreign income taxes
paid in cash to (b) Consolidated Fixed Charges for such period.

     “Consolidated Interest Expense” means, for any period, the sum of the following
determined on a Consolidated basis, without duplication, for the Borrowers and their Subsidiaries
in accordance with GAAP, interest expense (including, without limitation, interest expense
attributable to Capital Leases and all net payment obligations pursuant to Hedge Agreements) for
such period. For purposes hereof, “interest” shall include interest imputed on the Attributable
Indebtedness in respect of any Capital Lease or Synthetic Lease.

     “Consolidated Net Income” means, for any period, the net income (or loss) of the
Borrowers and their Subsidiaries for such period, determined on a Consolidated basis, without
duplication, in accordance with GAAP; provided, in calculating Consolidated Net Income of
the Borrowers and their Subsidiaries for any period, there shall be excluded (a) the net income (or
loss) of any Person (other than a Subsidiary which shall be subject to clause (c) below), in which
any Borrower or any of its Subsidiaries has a joint interest with a third party, except to the
extent such net income is actually paid in cash to any Borrower or any of its Subsidiaries by
dividend or other distribution during such period, (b) the net income (or loss) of any Person
accrued prior to the date

AMENDED AND RESTATED CREDIT AGREEMENT — Page 11

 

 

it becomes a Subsidiary of the Parent or any of its Subsidiaries or is merged into or
consolidated with any Borrower or any of its Subsidiaries or that Person’s assets are acquired by
any Borrower or any of its Subsidiaries except to the extent included pursuant to the foregoing
clause (a), and (c) the net income (if positive), of any Subsidiary to the extent that the
declaration or payment of dividends or similar distributions by such Subsidiary to any Borrower or
any of its Subsidiaries of such net income is not at the time permitted by operation of the terms
of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental
regulation applicable to such Subsidiary.

     “Consolidated Total Indebtedness” means, as of any date of determination with respect
to the Borrowers and their Subsidiaries on a Consolidated basis without duplication, the sum of all
Indebtedness of the Borrowers and their Subsidiaries.

     “Consolidated Total Leverage Ratio” means, as of any date of determination, the ratio
of (a) the remainder of (i) Consolidated Total Indebtedness for borrowed money on such date
minus (ii) unencumbered cash and Cash Equivalents in excess of $5,000,000 on such date to
(b) Consolidated EBITDAR for the period of four (4) consecutive Fiscal Quarters ending on or
immediately prior to such date.

     “Credit Facility” means the Revolving Credit Facility, the Swingline Facility, the L/C
Facility, the Refinancing Term Loan Facility or the Additional Term Loan Facility.

     “Credit Parties” means, collectively, the Borrowers and their Subsidiaries (including,
without limitation, the Subsidiary Guarantors).

     “Debt Issuance” shall mean the issuance of any Indebtedness for borrowed money by any
Borrower or any of its Subsidiaries.

     “Default” means any of the events specified in Section 12.1 which, with the
passage of time or the giving of notice or both, would constitute an Event of Default.

     “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the
Revolving Credit Loans, participations in L/C Obligations or participations in Swingline Loans
required to be funded by it hereunder within one Business Day of the date required to be funded by
it hereunder, (b) has otherwise failed to pay over to the Administrative Agent or any other Lender
any other amount required to be paid by it hereunder within one Business Day of the date when due,
unless such amount is the subject of a good faith dispute, (c) has notified the Borrower, the
Administrative Agent or any other Lender in writing that it does not intend to comply with any of
its funding obligations under this Agreement or has made a public statement to the effect that it
does not intend to comply or has failed to comply with its funding obligations under this Agreement
or under other agreements in which it commits or is obligated to extend credit, or (d) has, or has
a direct or indirect parent company that has, become or is insolvent or has become the subject of a
bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian
appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval
of or acquiescence in any such proceeding or appointment.

     Disputes” means any dispute, claim or controversy arising out of, connected with or
relating to this Agreement or any other Loan Document, between or among parties hereto and to the
other Loan Documents.

     “Disqualified Capital Stock” means any Capital Stock that, by its terms (or by the
terms of any security or other Capital Stock into which it is convertible or for which it is
exchangeable) or

AMENDED AND RESTATED CREDIT AGREEMENT — Page 12

 

 

upon the happening of any event or condition, (a) matures or is mandatorily redeemable (other
than solely for Qualified Capital Stock), pursuant to a sinking fund obligation or otherwise
(except as a result of a change of control or asset sale so long as any rights of the holders
thereof upon the occurrence of a change of control or asset sale event shall be subject to the
prior repayment in full of the Loans and all other Obligations that are accrued and payable and the
termination of the Commitments), (b) is redeemable at the option of the holder thereof (other than
solely for Qualified Capital Stock) (except as a result of a change of control or asset sale so
long as any rights of the holders thereof upon the occurrence of a change of control or asset sale
event shall be subject to the prior repayment in full of the Loans and all other Obligations that
are accrued and payable and the termination of the Commitments), in whole or in part, (c) provides
for the scheduled payment of dividends in cash or (d) is or becomes convertible into or
exchangeable for Indebtedness or any other Capital Stock that would constitute Disqualified Capital
Stock, in each case, prior to the date that is 91 days after the Scheduled Maturity Date; provided,
that if such Capital Stock is issued pursuant to a plan for the benefit of any Borrower or any of
its Subsidiaries or by any such plan to such employees, such Capital Stock shall not constitute
Disqualified Capital Stock solely because it may be required to be repurchased by any Borrower or
any of its Subsidiaries in order to satisfy applicable statutory or regulatory obligations.

     “Dollars” or “$” means, unless otherwise qualified, dollars in lawful currency
of the United States.

     “Domestic Subsidiary” means any Subsidiary organized under the laws of any political
subdivision of the United States.

     “Eligible Accounts” means all unpaid Accounts of the Borrowers arising from the sale
or lease of goods or the performance of services, net of any credits, but excluding any Accounts
having any of the following characteristics:

     (a) that portion of Accounts unpaid 90 days or more after the invoice date or unpaid more than
30 days past the stated due date;

     (b) that portion of Accounts related to goods or services with respect to which a Borrower has
received notice of a claim or dispute, which is subject to a claim of offset or a contra account,
or which reflect a reasonable reserve for warranty claims or returns;

     (c) that portion of Accounts not yet earned by the final delivery of goods or that portion of
Accounts not yet earned by the final rendition of services by a Borrower to the account debtor,
including, with respect to both goods and services, progress billings, and that portion of Accounts
for which an invoice has not been sent to the applicable account debtor;

     (d) Accounts constituting (i) Proceeds of copyrightable material unless such copyrightable
material shall have been registered with the United States Copyright Office, or (ii) Proceeds of
patentable inventions unless such patentable inventions have been registered with the United States
Patent and Trademark Office;

     (e) Accounts owed by any Governmental Authority, whether foreign or domestic (except that
there shall be included in Eligible Accounts that portion of Accounts owed by such Governmental
Authority for which a Borrower has provided evidence satisfactory to the Administrative Agent that
(i) the Administrative Agent’s security interest therein constitutes a perfected first priority
Lien in such Accounts, and (ii) such Accounts may be enforced by the Administrative Agent directly
against such Governmental Authority under all Applicable Laws);

AMENDED AND RESTATED CREDIT AGREEMENT — Page 13

 

 

     (f) Accounts denominated in any currency other than United States Dollars;

     (g) Accounts owed by an account debtor located outside the United States which are not (i)
backed by a bank letter of credit naming the Administrative Agent as beneficiary or assigned to the
Administrative Agent, in the Administrative Agent’s possession or control, and with respect to
which a control agreement concerning the letter-of-credit rights is in effect, and reasonably
acceptable to the Administrative Agent in all respects, or (ii) covered by a foreign receivables
insurance policy reasonably acceptable to the Administrative Agent;

     (h) Accounts owed by an account debtor who is insolvent or is the subject of any bankruptcy or
similar proceedings of the type referred to in Section 12.1(i) or Section 12.1(j)
or who has gone out of business;

     (i) Accounts owed by Alon USA Energy, any Credit Party, any of its Affiliates or any of its
officers or employees;

     (j) Accounts not subject to the Security Agreement or which are subject to any Lien in favor
of any Person other than the Administrative Agent;

     (k) that portion of Accounts that constitutes advertising, finance charges, service charges or
sales or excise taxes;

     (l) Accounts owed by an account debtor which were created on cash on delivery terms or are
chargeable to a credit card of such account debtor; and

     (m) Accounts owed by an account debtor, regardless of whether otherwise eligible, if 20% or
more of the total amount of Accounts due from such debtor is ineligible under clauses (a)
or (b) above.

     “Eligible Inventory” means all Inventory of the Borrowers, valued at cost in
accordance with GAAP (except in the case of fuel inventory, which shall be valued at market value),
but excluding Inventory having any of the following characteristics:

     (a) Inventory that is: in-transit; located at any warehouse, job site or other premises not
approved by the Administrative Agent in an authenticated record delivered to the Borrower Agent;
not subject to a perfected, first priority Lien in favor of the Administrative Agent; covered by
any negotiable or non-negotiable warehouse receipt, bill of lading or other document of title; on
consignment from any consignor; or on consignment to any consignee or subject to any bailment
unless the consignee or bailee has executed an agreement with and satisfactory to the
Administrative Agent;

     (b) supplies, packaging, maintenance parts or sample Inventory, or customer supplied parts or
Inventory;

     (c) work-in-process Inventory;

     (d) Inventory that is damaged, defective, obsolete or not currently saleable in the normal
course of a Borrower’s operations, or the amount of such Inventory that has been reduced by
shrinkage;

     (e) Inventory that the a Borrower has returned, has attempted to return, is in the process of
returning or intends to return to the vendor of the Inventory;

AMENDED AND RESTATED CREDIT AGREEMENT — Page 14

 

 

     (f) Inventory manufactured by a Borrower pursuant to a license, unless the applicable licensor
has agreed in an authenticated record by such licensor to permit the Administrative Agent to
exercise its rights and remedies against such Inventory; and

     (g) Inventory that is subject to a Lien in favor of any Person other than the Administrative
Agent.

     “Employee Benefit Plan” means (a) any employee benefit plan within the meaning of
Section 3(3) of ERISA that is maintained for employees of any Borrower or any of its Subsidiaries
or (b) any Pension Plan or Multiemployer Plan that has at any time within the preceding six (6)
years been maintained for the employees of any Credit Party or any current or former ERISA
Affiliate.

     “Environmental Claims” means any and all administrative, regulatory or judicial
actions, suits, demands, demand letters, claims, liens, notices of noncompliance or violation,
investigations (other than internal reports prepared by any Person in the ordinary course of
business and not in response to any third party action or request of any kind) or proceedings
relating in any way to any actual or alleged violation of or liability under any Environmental Law
or relating to any permit issued, or any approval given, under any such Environmental Law,
including, without limitation, any and all claims by Governmental Authorities for enforcement,
cleanup, removal, response, remedial or other actions or damages, contribution, indemnification
cost recovery, compensation or injunctive relief resulting from Hazardous Materials or arising from
alleged injury or threat of injury to human health or the environment.

     “Environmental Laws” means any and all federal, foreign, state, provincial and local
laws, statutes, ordinances, codes, rules, common law, standards and regulations, permits, licenses,
approvals and orders of courts or Governmental Authorities, relating to the protection of human
health or the environment, including, but not limited to, requirements pertaining to the
manufacture, processing, distribution, use, treatment, storage, disposal, transportation, handling,
reporting, licensing, permitting, investigation or remediation of any hazardous waste (as defined
by 42 U.S.C. § 6903(5)), hazardous substance (as defined by 42 U.S.C. § 9601(14)), hazardous
material (as defined by 49 U.S.C. § 5102(2)), toxic pollutant (as listed pursuant to 33 U.S.C. §
1317), or pollutant or contaminant (in each case as defined by 33 U.S.C. § 9601(33)).

     “Equity Issuance” means (a) any issuance by any Credit Party or any Subsidiary thereof
to any Person that is not a Credit Party of (i) shares of its Capital Stock, (ii) any shares of its
Capital Stock pursuant to the exercise of options or warrants or (iii) any shares of its Capital
Stock pursuant to the conversion of any debt securities to equity and (b) any capital contribution
from any Person that is not a Credit Party into any Credit Party or any Subsidiary thereof. The
term “Equity Issuance” shall not include (A) any Asset Disposition or (B) any Debt Issuance.

     “ERISA” means the Employee Retirement Income Security Act of 1974, and the rules and
regulations thereunder, each as amended or modified from time to time.

     “ERISA Affiliate” means any Person who together with any Credit Party or any of its
Subsidiaries is treated as a single employer within the meaning of Section 414(b), (c), (m) or (o)
of the Code or Section 4001(b) of ERISA.

     “Eurodollar Reserve Percentage” means, for any day, the percentage (expressed as a
decimal and rounded upwards, if necessary, to the next higher 1/100th of 1%) which is in effect for
such day as prescribed by the Board of Governors of the Federal Reserve System (or any successor)
for determining the maximum reserve requirement (including, without limitation, any

AMENDED AND RESTATED CREDIT AGREEMENT — Page 15

 

 

basic, supplemental or emergency reserves) in respect of eurocurrency liabilities or any
similar category of liabilities for a member bank of the Federal Reserve System in New York City.

     “Event of Default” means any of the events specified in Section 12.1;
provided that any requirement for passage of time, giving of notice, or any other
condition, has been satisfied.

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

     “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the
Issuing Lender or any other recipient of any payment to be made by or on account of any obligation
of the Borrower hereunder, (a) taxes imposed on or measured by its overall net income (however
denominated), and franchise or margin taxes imposed on it (in lieu of net income taxes), by the
jurisdiction (or any political subdivision thereof) under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any Lender, in which its
applicable Lending Office is located, (b) any branch profits taxes imposed by the United States or
any similar tax imposed by any other jurisdiction in which the Borrower is located and (c) in the
case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under
Section 5.12(b)), any withholding tax that is imposed on amounts payable to such Foreign
Lender at the time such Foreign Lender becomes a party hereto (or designates a new Lending Office)
or is attributable to such Foreign Lender’s failure or inability (other than as a result of a
Change in Law) to comply with Section 5.11(e), except to the extent that such Foreign
Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending Office
(or assignment), to receive additional amounts from the Borrower with respect to such withholding
tax pursuant to Section 5.11(a).

     “Existing Credit Agreement” has the meaning set forth in the Statement of Purpose.

     “Existing Term Loan” has the meaning set forth in the Statement of Purpose.

     “Extensions of Credit” means, as to any Lender at any time, (a) an amount equal to the
sum of (i) the aggregate principal amount of all Revolving Credit Loans made by such Lender then
outstanding, (ii) such Lender’s Revolving Credit Commitment Percentage of the L/C Obligations then
outstanding, (iii) such Lender’s Revolving Credit Commitment Percentage of the Swingline Loans then
outstanding and (iv) the aggregate principal amount of the Term Loans made by such Lender then
outstanding, or (b) the making of any Loan or participation in any Letter of Credit by such Lender,
as the context requires.

     “FDIC” means the Federal Deposit Insurance Corporation, or any successor thereto.

     “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of the Federal Reserve
System arranged by federal funds brokers on such day (or, if such day is not a Business Day, for
the immediately preceding Business Day), as published by the Federal Reserve Bank of New York on
the Business Day next succeeding such day, provided that, if such rate is not so published
for any day which is a Business Day, “Federal Funds Rate” means the average of the quotation for
such day on such transactions received by the Administrative Agent from three Federal Funds brokers
of recognized standing selected by the Administrative Agent.

     “Fee Letter” means the separate fee letter agreement dated as of December 30, 2010,
among the Borrowers and Wells Fargo.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 16

 

 

     “Fiscal Quarter” means any fiscal quarter of the Parent and its Subsidiaries ending on
March 31st, June 30th, September 30th or December 31st.

     “Fiscal Year” means the fiscal year of the Parent and its Subsidiaries ending on
December 31st.

     “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which a Borrower is resident for tax purposes. For purposes of this definition,
the United States, each State thereof and the District of Columbia shall be deemed to constitute a
single jurisdiction.

     “Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.

     “Fund” means any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and similar extensions of
credit in the ordinary course of its business.

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

     “Governmental Approvals” means all authorizations, consents, approvals, permits,
licenses and exemptions of, registrations and filings with, all Governmental Authorities.

     “Governmental Authority” means the government of the United States or any other
nation, or of any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government (including any supra-national bodies such as the European Union or the European Central
Bank).

     “GTS” has the meaning assigned thereto in the introductory paragraph hereto.

     “Guarantors” means, collectively, Alon USA Energy, the Parent and each Subsidiary
Guarantor.

     “Guaranty Agreement” means the Alon Guaranty Agreement and the Subsidiary Guaranty
Agreement.

     “Guaranty Obligation” means, with respect to any Borrower or any of its Subsidiaries,
without duplication, any obligation, contingent or otherwise, of any such Person pursuant to which
such Person has directly or indirectly guaranteed any Indebtedness or other obligation of any other
Person and, without limiting the generality of the foregoing, any obligation, direct or indirect,
contingent or otherwise, of any such Person (a) to purchase or pay (or advance or supply funds for
the purchase or payment of) such Indebtedness or other obligation (whether arising by virtue of
partnership arrangements, by agreement to keep well, to purchase assets, goods, securities or
services, to take-or-pay, or to maintain financial statement condition or otherwise) or (b) entered
into for the purpose of assuring in any other manner the obligee of such Indebtedness or other
obligation of the payment thereof or to protect such obligee against loss in respect thereof (in
whole or in part); provided, that the term Guaranty Obligation shall not include
endorsements for collection or deposit in the ordinary course of business.

     “Hazardous Materials” means any substances or materials (a) which are or become
defined as hazardous wastes, hazardous substances, pollutants, contaminants, chemical substances or

AMENDED AND RESTATED CREDIT AGREEMENT — Page 17

 

 

mixtures or toxic substances under any Environmental Law, (b) which are toxic, explosive,
corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise harmful to
human health or the environment and are or become regulated by any Governmental Authority, (c) the
presence of which require investigation or remediation under any Environmental Law or common law,
(d) the discharge or emission or release of which requires a permit or license under any
Environmental Law or other Governmental Approval, (e) which consist of underground or aboveground
storage tanks, whether empty, filled or partially filled with any substance, or (f) which contain,
without limitation, asbestos, polychlorinated biphenyls, urea formaldehyde foam insulation,
petroleum hydrocarbons, petroleum derived substances or waste, crude oil, nuclear fuel, natural gas
or synthetic gas.

     “Hedge Agreement” means any agreement with respect to any Interest Rate Contract,
forward rate agreement, commodity swap, forward foreign exchange agreement, currency swap
agreement, cross-currency rate swap agreement, currency option agreement or other agreement or
arrangement designed to alter the risks of any Person arising from fluctuations in interest rates,
currency values or commodity prices, all as amended, restated, supplemented or otherwise modified
from time to time.

     “Indebtedness” means, with respect to any Person at any date and without duplication,
the sum of the following calculated in accordance with GAAP:

     (a) all liabilities, obligations and indebtedness for borrowed money including, but not
limited to, obligations evidenced by bonds, debentures, notes or other similar instruments of any
such Person;

     (b) all obligations to pay the deferred purchase price of property or services of any such
Person (including, without limitation, all obligations under non-competition, earn-out or similar
agreements), except (i) trade payables arising in the ordinary course of business not more than one
hundred twenty (120) days past due, or (ii) that are currently being contested in good faith by
appropriate proceedings and with respect to which reserves in conformity with GAAP have been
provided for on the books of such Person;

     (c) the Attributable Indebtedness of such Person with respect to such Person’s obligations in
respect of Capital Leases and Synthetic Leases (regardless of whether accounted for as indebtedness
under GAAP);

     (d) all obligations of such Person under conditional sale or other title retention agreements
relating to property purchased by such Person to the extent of the value of such property (other
than customary reservations or retentions of title under agreements with suppliers entered into in
the ordinary course of business);

     (e) all Indebtedness of any other Person secured by a Lien on any asset owned or being
purchased by such Person (including indebtedness arising under conditional sales or other title
retention agreements except trade payable arising in the ordinary course of business), whether or
not such indebtedness shall have been assumed by such Person or is limited in recourse;

     (f) all obligations, contingent or otherwise, of any such Person relative to the face amount
of letters of credit, whether or not drawn, including, without limitation, any Reimbursement
Obligation, and banker’s acceptances issued for the account of any such Person;

     (g) all obligations of any such Person in respect of Disqualified Capital Stock;

AMENDED AND RESTATED CREDIT AGREEMENT — Page 18

 

 

     (h) all Net Hedging Obligations of any such Person; and

     (i) all Guaranty Obligations of any such Person with respect to any of the foregoing.

     For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any
partnership or joint venture (other than a joint venture that is itself a corporation or limited
liability company) in which such Person is a general partner or a joint venturer, unless such
Indebtedness is expressly made non-recourse to such Person.

     “Indemnified Taxes” means Taxes and Other Taxes other than Excluded Taxes.

     “Insurance and Condemnation Event” means the receipt by any Credit Party or any of its
Subsidiaries of any cash insurance proceeds or condemnation award payable by reason of theft, loss,
physical destruction or damage, taking or similar event with respect to any of their respective
Property.

     “Interest Period” has the meaning assigned thereto in Section 5.1(b).

     “Interest Rate Contract” means any interest rate swap agreement, interest rate cap
agreement, interest rate floor agreement, interest rate collar agreement, interest rate option or
any other agreement regarding the hedging of interest rate risk exposure executed in connection
with hedging the interest rate exposure of any Person and any confirming letter executed pursuant
to such agreement, all as amended, restated, supplemented or otherwise modified from time to time.

     “Inventory” means as such term is defined in the UCC.

     “IPO” means an initial public offering of Capital Stock of the Parent registered with
the Securities and Exchange Commission under the Securities Act of 1933, as amended.

     “ISP98” means the International Standby Practices (1998 Revision, effective January 1,
1999), International Chamber of Commerce Publication No. 590.

     “Issuing Lender” means Wells Fargo, in its capacity as issuer of a Letter of Credit,
or any successor thereto.

     “Joinder Agreement” means an agreement substantially in the form attached as Exhibit L
or in such other form as may be acceptable to the Administrative Agent pursuant to which a
Subsidiary of a Borrower becomes a party to this Agreement, the Guaranty Agreement and/or the
Security Agreement, as applicable.

     “L/C Commitment” means the lesser of (a) $2,500,000 and (b) the Revolving Credit
Commitment.

     “L/C Facility” means the letter of credit facility established pursuant to Article
III.

     “L/C Obligations” means at any time, an amount equal to the sum of (a) the aggregate
undrawn and unexpired amount of the then outstanding Letters of Credit and (b) the aggregate amount
of drawings under Letters of Credit which have not then been reimbursed pursuant to Section
3.5.

     “L/C Participants” means the collective reference to all the Revolving Credit Lenders
other than the Issuing Lender.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 19

 

 

     “Lender” has the meaning assigned thereto in the introductory paragraph hereof (and,
unless the context otherwise provides, includes the Issuing Lender and the Swingline Lender).

     “Lending Office” means, with respect to any Lender, the office of such Lender
maintaining such Lender’s Extensions of Credit.

     “Letter of Credit Application” means an application, in the form specified by the
Issuing Lender from time to time, requesting the Issuing Lender to issue a Letter of Credit.

     “Letters of Credit” means the collective reference to letters of credit issued
pursuant to Section 3.1.

     “LIBOR” means,

     (a) for any interest rate calculation with respect to a LIBOR Rate Loan, the rate of interest
per annum determined on the basis of the rate for deposits in Dollars for a period equal to the
applicable Interest Period which appears on Reuters Screen LIBOR01 Page (or any successor page) at
approximately 11:00 a.m. (London time) two (2) Business Days prior to the first day of the
applicable Interest Period (rounded upward, if necessary, to the nearest 1/100th of 1%). If, for
any reason, such rate does not appear on Reuters Screen LIBOR01 Page (or any successor page), then
“LIBOR” shall be determined by the Administrative Agent to be the arithmetic average of the rate
per annum at which deposits in Dollars in minimum amounts of at least $5,000,000 would be offered
by first class banks in the London interbank market to the Administrative Agent at approximately
11:00 a.m. (London time) two (2) Business Days prior to the first day of the applicable Interest
Period for a period equal to such Interest Period; and

     (b) for any interest rate calculation with respect to a Base Rate Loan, the rate of interest
per annum determined on the basis of the rate for deposits in Dollars in minimum amounts of at
least $5,000,000 for a period equal to one month (commencing on the date of determination of such
interest rate) which appears on the Reuters Screen LIBOR01 Page (or any successor page) at
approximately 11:00 a.m. (London time) on such date of determination, or, if such date is not a
Business Day, then the immediately preceding Business Day (rounded upward, if necessary, to the
nearest 1/100th of 1%). If, for any reason, such rate does not appear on Reuters Screen LIBOR01
Page (or any successor page) then “LIBOR” for such Base Rate Loan shall be determined by the
Administrative Agent to be the arithmetic average of the rate per annum at which deposits in
Dollars in minimum amounts of at least $5,000,000 would be offered by first class banks in the
London interbank market to the Administrative Agent at approximately 11:00 a.m. (London time) on
such date of determination for a period equal to one month commencing on such date of
determination.

     Each calculation by the Administrative Agent of LIBOR shall be conclusive and binding for all
purposes, absent manifest error.

     “LIBOR Rate” means a rate per annum (rounded upwards, if necessary, to the next higher
1/100th of 1%) determined by the Administrative Agent pursuant to the following formula:

	 	 	 	 	 

	LIBOR Rate =

	 	LIBOR
 

	 	 
	 

	 	1.00 minus the Eurodollar Reserve Percentage	 	 

AMENDED AND RESTATED CREDIT AGREEMENT — Page 20

 

 

     “LIBOR Rate Loan” means any Loan bearing interest at a rate based upon the LIBOR Rate
as provided in Section 5.1(a).

     “Lien” means, with respect to any asset, any mortgage, leasehold mortgage, lien,
pledge, charge, security interest, hypothecation or encumbrance in respect of such asset. For the
purposes of this Agreement, a Person shall be deemed to own subject to a Lien any asset which it
has acquired or holds subject to the interest of a vendor or lessor under any conditional sale
agreement, Capital Lease or other title retention agreement relating to such asset.

     “Loan Documents” means, collectively, this Agreement, each Note, the Letter of Credit
Applications, the Security Documents, the Fee Letter and each other document, instrument,
certificate and agreement executed and/or delivered by any Credit Party or any of its Subsidiaries
in favor of or provided to the Administrative Agent or any Secured Party in connection with this
Agreement or otherwise referred to herein or contemplated hereby (excluding any Specified Hedge
Agreement and any Specified Cash Management Arrangement), all as may be amended, restated,
supplemented or otherwise modified from time to time.

     “Loans” means the collective reference to the Revolving Credit Loans, the Term Loans
and the Swingline Loans, and “Loan” means any of such Loans.

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

     “Material Contract” means (a) any contract or other agreement, written or oral, of any
Credit Party or any of its Subsidiaries involving monetary liability of or to any such Person in an
amount in excess of $2,500,000 per annum or (b) any other contract or agreement, written or oral,
of any Credit Party or any of its Subsidiaries the failure to comply with which could reasonably be
expected to have a Material Adverse Effect.

     “Maximum Swingline Amount” means the lesser of (a) $2,500,000 and (b) the Revolving
Credit Commitment.

     “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

     “Mortgage” means each mortgage, deed of trust or other real property security document
encumbering any real property now or hereafter owned in fee by any Credit Party or any Subsidiary
as security for the payment of the Obligations, in each case, in form and substance reasonably
satisfactory to the Administrative Agent and executed by such Credit Party or such Subsidiary in
favor of the Administrative Agent, for the ratable benefit of the Secured Parties, as any such
document may be amended, restated, supplemented or otherwise modified from time to time.

     “Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of
ERISA to which any Credit Party or any ERISA Affiliate is making, or is accruing an obligation to
make, or has accrued an obligation to make contributions within the preceding six (6) years.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 21

 

 

     “Net Cash Proceeds” means, with respect to any Insurance and Condemnation Event, the
gross cash proceeds received by any Credit Party or any of its Subsidiaries therefrom (other than
proceeds from business interruption insurance) less the sum of (a) all fees and expenses in
connection therewith, including all insurance premiums and costs, and (b) subject to the proviso
below, the principal amount of, premium, if any, and interest on any Indebtedness secured by a Lien
on the asset (or a portion thereof) subject to such Insurance and Condemnation Event, provided that
such Indebtedness and Lien are permitted in accordance with Section 11.1 and Section
11.2, respectively.

     “Net Hedging Obligations” means, as of any date, the Termination Value of any Hedge
Agreement on such date.

     “Non-Consenting Lender” means any Lender that has not consented to any proposed
amendment, modification, waiver or termination of any Loan Document which, pursuant to Section
14.2, requires the consent of all Lenders or all affected Lenders and with respect to which the
Required Lenders shall have granted their consent.

     “Non-Guarantor Subsidiary” means any Foreign Subsidiary of a Borrower that is not a
Subsidiary Guarantor.

     “Notes” means the collective reference to the Revolving Credit Notes, the Swingline
Note and the Term Loans Notes.

     “Notice of Account Designation” has the meaning assigned thereto in Section
2.3(b).

     “Notice of Borrowing” has the meaning assigned thereto in Section 2.3(a).

     “Notice of Conversion/Continuation” has the meaning assigned thereto in Section
5.2.

     “Notice of Prepayment” has the meaning assigned thereto in Section 2.4(c).

     “Obligations” means, in each case, whether now in existence or hereafter arising: (a)
the principal of and interest on (including interest accruing after the filing of any bankruptcy or
similar petition) the Loans, (b) the L/C Obligations, (c) all Specified Obligations and (d) all
other fees and commissions (including attorneys’ fees), charges, indebtedness, loans, liabilities,
financial accommodations and monetary obligations owing by any one or more of the Credit Parties to
any one or more of the Secured Parties or the Administrative Agent, in each case under any Loan
Document or otherwise, with respect to any Loan or Letter of Credit of every kind, nature and
description, direct or indirect, absolute or contingent, due or to become due, liquidated or
unliquidated, and whether or not evidenced by any note; provided that (i) the Specified Obligations
shall be secured and guaranteed pursuant to the Security Documents only to the extent that, and for
so long as, the other Obligations are so secured and guaranteed and (ii) any release of Collateral
or Guarantors effected in the manner permitted by this Agreement shall not require the consent of
holders of the Specified Obligations.

     “OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control.

     “Officer’s Compliance Certificate” means a certificate of the chief financial officer
or the treasurer of the Borrower substantially in the form attached as Exhibit F.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 22

 

 

     “Operating Lease” means, as to any Person as determined in accordance with GAAP, any
lease of Property (whether real, personal or mixed) by such Person as lessee which is not a Capital
Lease.

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

     “Parent” means Alon Brands, Inc., a Delaware corporation.

     “Participant” has the meaning assigned thereto in Section 14.10(d).

     “PBGC” means the Pension Benefit Guaranty Corporation or any successor agency.

     “Pension Plan” means any Employee Benefit Plan, other than a Multiemployer Plan, which
is subject to the provisions of Title IV of ERISA or Section 412 or Section 430 of the Code and
which (a) is maintained for the employees of any Credit Party or any ERISA Affiliate or (b) has at
any time within the preceding six (6) years been maintained for the employees of any Credit Party
or any current or former ERISA Affiliates.

     “Permitted Acquisition” means any acquisition (by construction, purchase, through a
merger or otherwise) of (a) assets or a line of business of a Person that is engaged in a similar
line of business as that of the Borrowers, or (b) Capital Stock of a Person, provided that such
Person shall be a going concern and shall be in a similar line of business as that of the
Borrowers; provided that, at the time of any such acquisition described in clause
(a) or clause (b) above, (i) no Default is existing or would result therefrom, (ii) the
aggregate consideration paid in connection with such acquisition and any related acquisitions shall
not exceed $25,000,000 in the aggregate, and (iii) the acquisition shall not result in a Lien on
any the Collateral except in favor of the Administrative Agent.

     “Permitted Liens” means the Liens permitted pursuant to Section 11.2.

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

     “Platform” has the meaning assigned thereto in Section 8.5.

     “Prime Rate” means, at any time, the rate of interest per annum publicly announced
from time to time by Wells Fargo as its prime rate. Each change in the Prime Rate shall be
effective as of the opening of business on the day such change in such prime rate occurs. The
parties hereto acknowledge that the rate announced publicly by Wells Fargo as its prime rate is an
index or base rate and shall not necessarily be its lowest or best rate charged to its customers or
other banks.

     “Proceeds” means as such term is defined in the UCC.

     “Pro Forma Basis” means, subject to the proviso below and for purposes of calculating
certain definitions and compliance with any test or financial covenant under this Agreement for any
period, that such Specified Transaction (and all other Specified Transactions that have been
consummated during the applicable period) and the following transactions in connection therewith
shall be deemed to have occurred as of the first day of the applicable period of measurement in
such test or covenant: (a) income statement items (whether positive or negative) attributable to
the

AMENDED AND RESTATED CREDIT AGREEMENT — Page 23

 

 

Property or Person subject to such Specified Transaction, (i) in the case of a disposition of
all or substantially all of the Capital Stock of a Subsidiary or any division, business unit,
product line or line of business, shall be excluded and (ii) in the case of a Permitted
Acquisition, shall be included, (b) any retirement of Indebtedness and (c) any Indebtedness
incurred or assumed by any Borrower or any of its Subsidiaries in connection therewith, which
Indebtedness, if such Indebtedness has a floating or formula rate, shall have an implied rate of
interest for the applicable period for purposes of this definition determined by utilizing the rate
that is or would be in effect with respect to such Indebtedness as at the relevant date of
determination; provided, that (A) the foregoing pro forma adjustments may be applied to any such
definition, test or financial covenant solely to the extent that such adjustments (1) are
reasonably expected to be realized within twelve (12) months of such Specified Transaction as set
forth in reasonable detail on a certificate of a Responsible Officer of the Borrower Agent
delivered to the Administrative Agent and (2) are calculated on a basis consistent with GAAP and
Regulation S-X of the Securities Exchange Act of 1934, as amended, or as approved by the
Administrative Agent, and (B) the foregoing pro forma adjustments which would increase net income
(or reduce net loss) and which are not based upon actual, historical numbers may be applied to any
such definition, test or financial covenant solely if, based upon good faith negotiations between
the Borrower Agent and the Administrative Agent, the Borrower Agent and the Administrative Agent
have agreed to such pro forma adjustments for such specific purpose.

     “Property” means any right or interest in or to property of any kind whatsoever,
whether real, personal or mixed and whether tangible or intangible, including, without limitation,
Capital Stock.

     “Public Lenders” has the meaning assigned thereto in Section 8.5.

     “Qualified Capital Stock” means any Capital Stock that is not Disqualified Capital
Stock.

     “Refinancing Term Loan” means the term loan to be made to the Borrowers pursuant to
Section 4.1(a).

     “Refinancing Term Loan Commitment” means (a) as to any Lender, the obligation of such
Lender to make a portion of the Refinancing Term Loan for the account of the Borrowers hereunder on
the Closing Date in an aggregate principal amount not to exceed the amount set forth opposite such
Lender’s name on the Register and (b) as to all Lenders, the aggregate commitment of all Lenders to
make such Refinancing Term Loan. The Refinancing Term Loan Commitment of each Lender on the
Closing Date is as set forth in Schedule 1.1 hereto and the Refinancing Term Loan
Commitment of all Lenders on the Closing Date shall be $73,361,111.02.

     “Refinancing Term Loan Facility” means the term loan facility established pursuant to
Section 4.1(a).

     “Refinancing Term Loan Lender” means any Lender with a Refinancing Term Loan
Commitment.

     “Refinancing Term Loan Maturity Date” means the first to occur of (a) the Scheduled
Maturity Date, or (b) the date of acceleration of the Refinancing Term Loan pursuant to Section
12.2(a).

     “Refinancing Term Loan Note” means a promissory note made by the Borrowers in favor of
a Refinancing Term Loan Lender evidencing the portion of the Refinancing Term Loan made by such
Refinancing Term Loan Lender, substantially in the form attached as Exhibit A-3, and any

AMENDED AND RESTATED CREDIT AGREEMENT — Page 24

 

 

amendments, supplements and modifications thereto, any substitutes therefor and any
replacements, restatements, renewals or extension thereof, in whole or in part.

     “Refinancing Term Loan Percentage” means, as to any Refinancing Term Loan Lender,
after the Refinancing Term Loan is made hereunder, the ratio of (a) the outstanding principal
balance of such Refinancing Term Loan of such Lender to (b) the aggregate outstanding principal
balance of the Refinancing Term Loan of all such Lenders.

     “Register” has the meaning assigned thereto in Section 14.10(c).

     “Reimbursement Obligation” means the obligation of the Borrower to reimburse the
Issuing Lender pursuant to Section 3.5 for amounts drawn under Letters of Credit.

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

     “Required Lenders” means, at any date and subject to the proviso below, any Lender or
combination of Lenders holding more than fifty percent (50%) of the sum of (a) the aggregate amount
of the Revolving Credit Commitment plus (b) the aggregate outstanding principal amount of the Term
Loans or, if the Revolving Credit Commitment has been terminated, any Lender or combination of
Lenders holding more than fifty percent (50%) of the aggregate Extensions of Credit;
provided that (a) if and so long as there are only two Lenders, “Required Lenders” means
both of such Lenders and (b) the Revolving Credit Commitment of, and the portion of the Extensions
of Credit, as applicable, held or deemed held by, any Defaulting Lender shall be excluded for
purposes of making a determination of the “Required Lenders”.

     “Required Revolving Credit Lenders” means, at any date, any combination of Revolving
Credit Lenders holding more than fifty percent (50%) of the sum of the aggregate amount of the
Revolving Credit Commitment or, if the Revolving Credit Commitment has been terminated, any
combination of Revolving Credit Lenders holding more than fifty percent (50%) of the aggregate
Extensions of Credit under the Revolving Credit Facility; provided that (a) if and so long
as there are only two Lenders, “Required Revolving Credit Lenders” means both of such Lenders and
(b) the Revolving Credit Commitment of, and the portion of the Extensions of Credit under the
Revolving Credit Facility, as applicable, held or deemed held by, any Defaulting Lender shall be
excluded for purposes of making a determination of Required Revolving Credit Lenders.

     “Responsible Officer” means, as to any Person, the chief executive officer, president,
chief financial officer, controller, treasurer or assistant treasurer of such Person or any other
officer of such Person reasonably acceptable to the Administrative Agent. Any document delivered
hereunder or under any other Loan Document that is signed by a Responsible Officer of a Person
shall be conclusively presumed to have been authorized by all necessary corporate, partnership
and/or other action on the part of such Person and such Responsible Officer shall be conclusively
presumed to have acted on behalf of such Person.

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

AMENDED AND RESTATED CREDIT AGREEMENT — Page 25

 

 

     “Revolving Credit Commitment” means (a) as to any Lender, the obligation of such
Lender to make Revolving Credit Loans for the account of the Borrowers hereunder in an aggregate
principal amount at any time outstanding not to exceed the amount set forth opposite such Revolving
Credit Lender’s name on the Register, as such amount may be modified at any time or from time to
time pursuant to the terms hereof and (b) as to all Lenders, the aggregate commitment of all
Lenders to make Revolving Credit Loans, as such amount may be modified at any time or from time to
time pursuant to the terms hereof. The Revolving Credit Commitment of each Lender on the Closing
Date is as set forth in Schedule 1.1 hereto and the Revolving Credit Commitment of all
Lenders on the Closing Date shall be $10,000,000.

     “Revolving Credit Commitment Percentage” means, as to any Revolving Credit Lender at
any time, the ratio of (a) the amount of the Revolving Credit Commitment of such Revolving Credit
Lender to (b) the Revolving Credit Commitment of all Revolving Credit Lenders.

     “Revolving Credit Facility” means the revolving credit facility established pursuant
to Article II.

     “Revolving Credit Lenders” means Lenders with a Revolving Credit Commitment.

     “Revolving Credit Loan” means any revolving loan made to the Borrowers pursuant to
Section 2.1, and all such revolving loans collectively as the context requires.

     “Revolving Credit Maturity Date” means the earliest to occur of (a) the Scheduled
Maturity Date, (b) the date of termination of the entire Revolving Credit Commitment pursuant to
Section 2.5, or (c) the date of termination of the Revolving Credit Commitment pursuant to
Section 12.2(a).

     “Revolving Credit Note” means a promissory note made by the Borrower in favor of a
Revolving Credit Lender evidencing the Revolving Credit Loans made by such Revolving Credit Lender,
substantially in the form attached as Exhibit A-1, and any amendments, supplements and
modifications thereto, any substitutes therefor, and any replacements, restatements, renewals or
extension thereof, in whole or in part.

     “Revolving Credit Outstandings” means the sum of (a) with respect to Revolving
Credit Loans and Swingline Loans on any date, the aggregate outstanding principal amount thereof
after giving effect to any borrowings and prepayments or repayments of Revolving Credit Loans and
Swingline Loans, as the case may be, occurring on such date; plus (b) with respect to any
L/C Obligations on any date, the aggregate outstanding amount thereof on such date after giving
effect to any Extensions of Credit occurring on such date and any other changes in the aggregate
amount of the L/C Obligations as of such date, including as a result of any reimbursements of
outstanding unpaid drawings under any Letters of Credit or any reductions in the maximum amount
available for drawing under Letters of Credit taking effect on such date.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc. and any successor thereto.

     “Sanctioned Entity” shall mean (a) an agency of the government of, (b) an organization
directly or indirectly controlled by, or (c) a person resident in, a country that is subject to a
sanctions program identified on the list maintained by OFAC and available at
http://www.treas.gov/offices/enforcement/ofac/programs, or as otherwise published from time
to time as such program may be applicable to such agency, organization or person.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 26

 

 

     “Sanctioned Person” shall mean a person named on the list of Specially Designated
Nationals or Blocked Persons maintained by OFAC available at
http://www.treas.gov/offices/enforcement/ofac/sdn/index.html, or as otherwise published
from time to time.

     “Scheduled Maturity Date” means December 30, 2015.

     “SEC” means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

     “Secured Parties” mean collectively, the Lenders, the Administrative Agent, the
Swingline Lender, any Issuing Lender, any counterparty to a Specified Hedge Agreement, any
counterparty to a Specified Cash Management Arrangement, any other holder from time to time of any
of the Obligations and, in each case, their respective successors and permitted assigns.

     “Security Agreement” means the Security Agreement of even date herewith executed by
the Borrowers and their Subsidiaries in favor of the Administrative Agent, for the ratable benefit
of the Secured Parties, substantially in the form of Exhibit J, as amended, restated, supplemented
or otherwise modified from time to time, pursuant to which the Administrative Agent, for the
benefit of the Secured Parties and as security for the payment of the Obligations, is granted a
security interest in all (or essentially all, as may be provided therein) personal property
(including, without limitation, Capital Stock of the Subsidiaries of each Credit Party) of such
Credit Parties.

     “Security Documents” means the collective reference to the Security Agreement, the
Mortgages, the Guaranty Agreements, and each other agreement or writing pursuant to which any
Credit Party purports to pledge or grant a security interest in or other Lien on any Property or
assets securing the Obligations (or any part thereof) or any such Person purports to guaranty the
payment, performance and/or collection of the Obligations (or any part thereof), in each case, as
amended, restated, supplemented or otherwise modified from time to time.

     “Skinny’s” has the meaning assigned thereto in the introductory paragraph hereto.

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

     “Southwest” has the meaning assigned thereto in the introductory paragraph hereto.

     “Specified Cash Management Arrangement” means any cash management arrangement (a)
entered into by (i) any Borrower or any of its Subsidiaries and (ii) any Lender or any Affiliate
thereof at the time such cash management arrangement was entered into, as counterparty and (b)
which has been designated by such Lender or such Affiliate and the Borrower Agent, by notice to the
Administrative Agent not later than thirty (30) days after the execution and delivery by such
Borrower or such Subsidiary thereof, as a Specified Cash Management Arrangement. No Lender or
Affiliate thereof that is a party to a Specified Cash Management Arrangement shall have any rights
in connection with the management or release of any Collateral or of the Obligations of any Credit
Party under any Loan Document. For the avoidance of doubt, (A) all cash management arrangements
provided by the Administrative Agent or any of its Affiliates and (B) all cash management
arrangements in existence on the Closing Date between any Borrower or any of its Subsidiaries and
any Lender or an Affiliate thereof, shall constitute Specified Cash Management Arrangements.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 27

 

 

     “Specified Cash Management Obligations” means all existing or future payment and other
obligations owing by any Borrower or any of its Subsidiaries under any Specified Cash Management
Arrangement.

     “Specified Hedge Agreement” means any Hedge Agreement (a) entered into by (i) any
Borrower or any of its Subsidiaries and (ii) any Lender or any Affiliate thereof at the time such
Hedge Agreement was entered into, as counterparty and (b) that has been designated by such Lender
or such Affiliate and the Borrower, by notice to the Administrative Agent not later than thirty
(30) days after the execution and delivery by the Borrower or such Subsidiary thereof, as a
Specified Hedge Agreement. No Lender or Affiliate thereof that is a party to a Specified Hedge
Agreement shall have any rights in connection with the management or release of any Collateral or
of the Obligations of any Credit Party under any Loan Document. For the avoidance of doubt, (A)
all Hedge Agreements provided by the Administrative Agent or any of its Affiliates and (B) all
Hedge Agreements in existence on the Closing Date between any Borrower or any of its Subsidiaries
and any Lender, shall constitute Specified Hedge Agreements.

     “Specified Hedge Obligations” means all existing or future payment and other
obligations owing by a Borrower or any of its Subsidiaries under any Specified Hedge Agreement.

     “Specified Obligations” means, collectively, (a) all Specified Hedge Obligations and
(b) all Specified Cash Management Obligations.

     “Specified Transactions” means (a) any disposition of all or substantially all of the
assets or Capital Stock of any Subsidiary of a Borrower or any division, business unit, product
line or line of business, (b) any Permitted Acquisition, (c) any incurrence of Indebtedness, and
(d) the classification of any asset, business unit, division or line of business as a discontinued
operation.

     “Subordinated Indebtedness” means all Indebtedness of any Credit Party or any
Subsidiary thereof subordinated in right of payment to the Obligations pursuant to documents
containing maturities, amortization schedules, covenants, defaults, remedies, subordination
provisions and other material terms in form and substance reasonably satisfactory to the
Administrative Agent and the Required Lenders.

     “Subsidiary” means, as to any Person, any corporation, partnership, limited liability
company or other entity of which more than fifty percent (50%) of the outstanding Capital Stock
having ordinary voting power to elect a majority of the board of directors or other managers of
such corporation, partnership, limited liability company or other entity is at the time owned by
(directly or indirectly) such Person (irrespective of whether, at the time, Capital Stock of any
other class or classes of such corporation, partnership, limited liability company or other entity
shall have or might have voting power by reason of the happening of any contingency). Unless
otherwise qualified, references to “Subsidiary” or “Subsidiaries” herein shall refer to those of a
Borrower.

     “Subsidiary Guarantors” means, collectively, all (a) direct and indirect Domestic
Subsidiaries of any Borrower, including, without limitation, GTS, and (b) direct and indirect
Foreign Subsidiaries of any Borrower if and to the extent that and for so long as the guaranty of
such Foreign Subsidiary would not cause material adverse tax consequences for any Credit Party or
result in a violation of Applicable Laws), in each case in existence on the Closing Date or which
are or hereafter become (or are required to become) a party to the Guaranty Agreement pursuant to
Section 9.11.

     “Subsidiary Guaranty Agreement” means the unconditional guaranty agreement of even
date herewith executed by the Subsidiary Guarantors in favor of the Administrative Agent, for the

AMENDED AND RESTATED CREDIT AGREEMENT — Page 28

 

 

ratable benefit and the Secured Parties, substantially in the form attached as Exhibit I, as
amended, restated, supplemented or otherwise modified from time to time.

     “Swingline Facility” means the uncommitted swingline facility established pursuant to
Section 2.2.

     “Swingline Lender” means Wells Fargo in its capacity as swingline lender hereunder or
any successor thereto.

     “Swingline Loan” means any swingline loan made by the Swingline Lender to the
Borrowers pursuant to Section 2.2, and all such swingline loans collectively as the context
requires.

     “Swingline Note” means a promissory note made by the Borrowers in favor of the
Swingline Lender evidencing the Swingline Loans made by the Swingline Lender, substantially in the
form attached as Exhibit A-2, and any amendments, supplements and modifications thereto, any
substitutes therefor, and any replacements, restatements, renewals or extension thereof, in whole
or in part.

     “Synthetic Lease” means any synthetic lease, tax retention operating lease,
off-balance sheet loan or similar off-balance sheet financing product where such transaction is
considered borrowed money indebtedness for tax purposes but is classified as an Operating Lease in
accordance with GAAP.

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

     “Term Loan Commitment” means a Refinancing Term Loan Commitment or an Additional Term
Loan Commitment.

     “Term Loan Lender” means any Lender with a Term Loan Commitment.

     “Term Loans” means the Refinancing Term Loan and the Additional Term Loan.

     “Term Loans Notes” means the Refinancing Term Loan Notes and the Additional Term Loan
Notes.

     “Termination Event” means except for any such event or condition that could not
reasonably be expected to have a Material Adverse Effect: (a) a “Reportable Event” described in
Section 4043 of ERISA for which the notice requirement has not been waived by the PBGC, or (b) the
withdrawal of any Credit Party or any ERISA Affiliate from a Pension Plan subject to Section 4063
of ERISA during a plan year in which it was a “substantial employer” as defined in Section
4001(a)(2) of ERISA, or (c) the termination of a Pension Plan, the filing of a notice of intent to
terminate a Pension Plan or the treatment of a Pension Plan amendment as a termination, under
Section 4041 of ERISA, if the plan assets are not sufficient to pay all plan liabilities, or (d)
the institution of proceedings to terminate, or the appointment of a trustee with respect to, any
Pension Plan by the PBGC, or (e) any other event or condition which would constitute grounds under
Section 4042(a) of ERISA for the termination of, or the appointment of a trustee to administer, any
Pension Plan, or (f) the imposition of a Lien pursuant to Section 412 of the Code or Section 302 or
Section 303(k) of ERISA, or (g) the partial or complete withdrawal of any Credit Party or any ERISA
Affiliate from a Multiemployer Plan if withdrawal liability is asserted by such plan, or (h) any
event or condition which results in the reorganization or insolvency of a Multiemployer Plan under
Sections 4241 or 4245 of ERISA, or (i) any event or condition which

AMENDED AND RESTATED CREDIT AGREEMENT — Page 29

 

 

results in the termination of a Multiemployer Plan under Section 4041A of ERISA or the institution by PBGC of
proceedings to terminate a Pension Plan under Section 4042 of ERISA.

     “Termination Value” means, in respect of any one or more Hedge Agreements, after
taking into account the effect of any legally enforceable netting agreement relating to such Hedge
Agreements, (a) for any date on or after the date such Hedge Agreements have been closed out and
termination value(s) determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market
value(s) for such Hedge Agreements, as determined based upon one or more mid-market or other
readily available quotations provided by any recognized dealer in such Hedge Agreements (which may
include a Lender or any Affiliate of a Lender).

     “Threshold Amount” means $2,500,000.

     “Transactions” means, collectively, (a) the repayment in full of all Indebtedness
under the Existing Credit Agreement, (b) the initial Extensions of Credit, and (c) the payment of
the transaction costs in connection with items (a) through (b) above.

     “UCC” means the Uniform Commercial Code as in effect in the State of Texas, as amended
or modified from time to time.

     “Uniform Customs” means the Uniform Customs and Practice for Documentary Credits (1993
Revision), effective January, 1994 International Chamber of Commerce Publication No. 600.

     “United States” means the United States of America.

     “Wachovia” means Wachovia Bank, National Association.

     “Wells Fargo” means Wells Fargo Bank, National Association, a national banking
association, and its successors.

     “Wholly-Owned” means, with respect to a Subsidiary, that all of the shares of Capital
Stock of such Subsidiary are, directly or indirectly, owned or controlled by a Borrower and/or one
or more of its Wholly-Owned Subsidiaries (except for directors’ qualifying shares or other shares
required by Applicable Law to be owned by a Person other than a Borrower and/or one or more of its
Wholly-Owned Subsidiaries).

     SECTION 1.2 Other Definitions and Provisions. With reference to this Agreement and
each other Loan Document, unless otherwise specified herein or in such other Loan Document: (a) the
definitions of terms herein shall apply equally to the singular and plural forms of the terms
defined, (b) whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms, (c) the words “include”, “includes” and “including” shall be
deemed to be followed by the phrase “without limitation”, (d) the word “will” shall be construed to
have the same meaning and effect as the word “shall”, (e) any reference herein to any Person shall
be construed to include such Person’s successors and assigns, (f) the words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be construed to refer to this Agreement in its
entirety and not to any particular provision hereof, (g) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and
Exhibits and Schedules to, this Agreement, (h) the words “asset” and “property” shall be construed
to have the same meaning and effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights, (i) the term “documents”
includes any and all instruments, documents, agreements, certificates, notices, reports, financial
statements and other

AMENDED AND RESTATED CREDIT AGREEMENT — Page 30

 

 

writings, however evidenced, whether in physical or electronic form, (j) in the computation of
periods of time from a specified date to a later specified date, the word “from” means “from and
including;” the words “to” and “until” each mean “to but excluding;” and the word “through” means
“to and including” and (k) Section headings herein and in the other Loan Documents are included for
convenience of reference only and shall not affect the interpretation of this Agreement or any
other Loan Document.

     SECTION 1.3 Accounting Terms.

     (a) All accounting terms not specifically or completely defined herein shall be construed, and
all financial data (including financial ratios and other financial calculations) required to be
submitted pursuant to this Agreement shall be prepared, in conformity with GAAP, applied on a
consistent basis, as in effect from time to time and in a manner consistent with that used in
preparing the audited financial statements required by Section 8.1(b), except as
otherwise specifically prescribed herein. Notwithstanding the foregoing, all financial statements
delivered hereunder shall be prepared, and all financial covenants contained herein shall be
calculated, without giving effect to any election under the Statement of Financial Accounting
Standards No. 159 (or any similar accounting principle) permitting a Person to value its financial
liabilities or Indebtedness at the fair value thereof.

     (b) Notwithstanding anything to the contrary in this Agreement, for purposes of determining
compliance with any test or financial covenant contained in this Agreement (including for purposes
of determining the Applicable Margin) with respect to any period during which any Specified
Transaction occurs, such test or financial covenant shall be calculated with respect to such period
and such Specified Transaction (and all other Specified Transactions that have been consummated
during such period) on a Pro Forma Basis.

     (c) If at any time any change in GAAP would affect the computation of any financial ratio or
requirement set forth in any Loan Document, and either the Borrower Agent or the Required Lenders
shall so request, the Administrative Agent, the Lenders and the Borrower Agent shall negotiate in
good faith to amend such ratio or requirement to preserve the original intent thereof in light of
such change in GAAP (subject to the approval of the Required Lenders); provided that, until
so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP
prior to such change therein and (ii) the Borrower Agent shall provide to the Administrative Agent
and the Lenders financial statements and other documents required under this Agreement or as
reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

     SECTION 1.4 UCC Terms. Terms defined in the UCC in effect on the Closing Date and not
otherwise defined herein shall, unless the context otherwise indicates, have the meanings provided
by those definitions. Subject to the foregoing, the term “UCC” refers, as of any date of
determination, to the UCC then in effect.

     SECTION 1.5 Rounding. Any financial ratios required to be maintained by the Borrower
pursuant to this Agreement shall be calculated by dividing the appropriate component by the other
component, carrying the result to one place more than the number of places by which such ratio or
percentage is expressed herein and rounding the result up or down to the nearest number (with a
rounding-up if there is no nearest number).

     SECTION 1.6 References to Agreement and Laws. Unless otherwise expressly provided
herein, (a) references to formation documents, governing documents, agreements (including the

AMENDED AND RESTATED CREDIT AGREEMENT — Page 31

 

 

Loan Documents) and other contractual instruments shall be deemed to include all subsequent
amendments, restatements, extensions, supplements and other modifications thereto, but only to the
extent that such amendments, restatements, extensions, supplements and other modifications are not
prohibited by any Loan Document; and (b) references to any Applicable Law shall include all
statutory and regulatory provisions consolidating, amending, replacing, supplementing or
interpreting such Applicable Law.

     SECTION 1.7 Times of Day. Unless otherwise specified, all references herein to times
of day shall be references to Central time (daylight or standard, as applicable).

     SECTION 1.8 Letter of Credit Amounts. Unless otherwise specified, all references
herein to the amount of a Letter of Credit at any time shall be deemed to mean the maximum face
amount of such Letter of Credit after giving effect to all increases thereof contemplated by such
Letter of Credit or the Letter of Credit Application therefor (at the time specified therefor in
such applicable Letter of Credit or Letter of Credit Application and as such amount may be reduced
by (a) any permanent reduction of such Letter of Credit or (b) any amount which is drawn,
reimbursed and no longer available under such Letter of Credit).

ARTICLE II

REVOLVING CREDIT FACILITY

     SECTION 2.1 Revolving Credit Loans. Subject to the terms and conditions of this
Agreement and the other Loan Documents, and in reliance upon the representations and warranties set
forth herein, each Revolving Credit Lender severally agrees to make Revolving Credit Loans to the
Borrowers from time to time from the Closing Date through, but not including, the Revolving Credit
Maturity Date as requested by the Borrower Agent in accordance with the terms of Section
2.3; provided, that (a) the Revolving Credit Outstandings shall not exceed the lesser of the
Revolving Credit Commitment and the Borrowing Base and (b) the principal amount of outstanding
Revolving Credit Loans from any Revolving Credit Lender plus such Revolving Credit Lender’s
Revolving Credit Commitment Percentage of outstanding L/C Obligations and outstanding Swingline
Loans shall not at any time exceed such Revolving Credit Lender’s Revolving Credit Commitment.
Each Revolving Credit Loan by a Revolving Credit Lender shall be in a principal amount equal to
such Revolving Lender’s Revolving Credit Commitment Percentage of the aggregate principal amount of
Revolving Credit Loans requested on such occasion. Subject to the terms and conditions hereof, the
Borrowers may borrow, repay and reborrow Revolving Credit Loans hereunder until the Revolving
Credit Maturity Date.

     SECTION 2.2 Swingline Loans.

     (a) Availability. Subject to the terms and conditions of this Agreement, the
Swingline Lender may (or may not) in its sole discretion from time to time agree to make Swingline
Loans to the Borrowers from time to time from the Closing Date through, but not including, the
Revolving Credit Maturity Date; provided, that (a) after giving effect to any amount
requested, the Revolving Credit Outstandings shall not exceed the lesser of the Revolving Credit
Commitment and the Borrowing Base and (b) the aggregate principal amount of all outstanding
Swingline Loans (after giving effect to any amount requested) shall not exceed the lesser of (i)
the lesser of the Revolving Credit Commitment and the Borrowing Base, less the sum of all
outstanding Revolving Credit Loans and the L/C Obligations and (ii) the Maximum Swingline Amount.

     (b) Refunding.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 32

 

 

     (i) Swingline Loans shall be refunded by the Revolving Credit Lenders on demand by the
Swingline Lender. Such refundings shall be made by the Revolving Credit Lenders in
accordance with their respective Revolving Credit Commitment Percentages and shall
thereafter be reflected as Revolving Credit Loans of the Revolving Credit Lenders on the
books and records of the Administrative Agent. Each Revolving Credit Lender shall fund its
respective Revolving Credit Commitment Percentage of Revolving Credit Loans as required to
repay Swingline Loans outstanding to the Swingline Lender upon demand by the Swingline
Lender but in no event later than 1:00 p.m. on the next succeeding Business Day after such
demand is made. No Revolving Credit Lender’s obligation to fund its respective Revolving
Credit Commitment Percentage of a Swingline Loan shall be affected by any other Revolving
Credit Lender’s failure to fund its Revolving Credit Commitment Percentage of a Swingline
Loan, nor shall any Revolving Credit Lender’s Revolving Credit Commitment Percentage be
increased as a result of any such failure of any other Revolving Credit Lender to fund its
Revolving Credit Commitment Percentage of a Swingline Loan.

     (ii) The Borrower shall pay to the Swingline Lender on demand the amount of such
Swingline Loans to the extent amounts received from the Revolving Credit Lenders are not
sufficient to repay in full the outstanding Swingline Loans requested or required to be
refunded. In addition, the Borrowers hereby authorize the Administrative Agent to charge
any account maintained by any Borrower with the Swingline Lender (up to the amount
available therein) in order to immediately pay the Swingline Lender the amount of such
Swingline Loans to the extent amounts received from the Revolving Credit Lenders are not
sufficient to repay in full the outstanding Swingline Loans requested or required to be
refunded. If any portion of any such amount paid to the Swingline Lender shall be
recovered by or on behalf of any Borrower from the Swingline Lender in bankruptcy or
otherwise, the loss of the amount so recovered shall be ratably shared among all the
Revolving Credit Lenders in accordance with their respective Revolving Credit Commitment
Percentages (unless the amounts so recovered by or on behalf of any Borrower pertain to a
Swingline Loan extended after the occurrence and during the continuance of an Event of
Default of which the Administrative Agent has received notice in the manner required
pursuant to Section 13.3 and which such Event of Default has not been waived by the
Required Lenders or the Lenders, as applicable).

     (iii) Each Revolving Credit Lender acknowledges and agrees that its obligation to
refund Swingline Loans in accordance with the terms of this Section is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including, without
limitation, non-satisfaction of the conditions set forth in Article VI. Further,
each Revolving Credit Lender agrees and acknowledges that if, prior to the refunding of any
outstanding Swingline Loans pursuant to this Section, one of the events described in
Section 12.1(i) or (j) shall have occurred, each Revolving Credit Lender
will, on the date the applicable Revolving Credit Loan would have been made, purchase an
undivided participating interest in the Swingline Loan to be refunded in an amount equal to
its Revolving Credit Commitment Percentage of the aggregate amount of such Swingline Loan.
Each Revolving Credit Lender will immediately transfer to the Swingline Lender, in
immediately available funds, the amount of its participation, and upon receipt thereof the
Swingline Lender will deliver to such Revolving Credit Lender a certificate evidencing such
participation dated the date of receipt of such funds and for such amount. Whenever, at
any time after the Swingline Lender has received from any Revolving Credit Lender such
Revolving Credit Lender’s participating interest in a Swingline Loan, the Swingline Lender
receives any payment on account thereof, the Swingline Lender will distribute to

AMENDED AND RESTATED CREDIT AGREEMENT — Page 33

 

 

such Revolving Credit Lender its participating interest in such amount (appropriately
adjusted, in the case of interest payments, to reflect the period of time during which such
Revolving Credit Lender’s participating interest was outstanding and funded).

     (c) Defaulting Lenders. Notwithstanding anything to the contrary contained in this
Section 2.2, the Swingline Lender shall not be obligated to make any Swingline Loans at a
time when any other Revolving Credit Lender is a Defaulting Lender, unless the Swingline Lender has
entered into arrangements satisfactory to it to eliminate the Swingline Lender’s risk with respect
to any such Defaulting Lender’s funding obligations hereunder, including by cash collateralizing
such Defaulting Lender’s Revolving Credit Commitment Percentage of the applicable outstanding
Swingline Loans. On demand by the Swingline Lender or the Administrative Agent from time to time,
the Borrowers shall cash collateralize each Defaulting Lender’s Revolving Credit Commitment
Percentage of the outstanding Swingline Loans on terms reasonably satisfactory to the
Administrative Agent and the Swingline Lender. Any such cash collateral shall be deposited in a
separate account with the Administrative Agent, subject to the exclusive dominion and control of
the Administrative Agent, as collateral (solely for the benefit of the Swingline Lender) for the
payment and performance of each Defaulting Lender’s Revolving Credit Commitment Percentage of
outstanding Swingline Loans. Moneys in such account shall be applied by the Administrative Agent
to reimburse the Swingline Lender immediately for each Defaulting Lender’s Revolving Credit
Commitment Percentage of any Swingline Loans which have not otherwise been refunded by the
Borrowers or such Defaulting Lender pursuant to the terms of this Section 2.2.

     SECTION 2.3 Procedure for Advances of Revolving Credit Loans and Swingline Loans.

     (a) Requests for Borrowing. The Borrower Agent shall give the Administrative Agent
irrevocable prior written notice substantially in the form of Exhibit B (a “Notice of
Borrowing”) not later than 11:00 a.m. (i) on the same Business Day as each Base Rate Loan and
each Swingline Loan and (ii) at least three (3) Business Days before each LIBOR Rate Loan, of its
intention to borrow, specifying (A) the date of such borrowing, which shall be a Business Day, (B)
the amount of such borrowing, which shall be (1) with respect to Base Rate Loans (other than
Swingline Loans), in an aggregate principal amount of $1,000,000 or a whole multiple of $500,000 in
excess thereof, provided that any borrowing of Base Rate Loans may be in an aggregate amount that
is equal to the entire unused balance of the Revolving Credit Commitment or that is required to
finance the amount of a reimbursement obligation under a Letter of Credit, (2) with respect to
LIBOR Rate Loans, in an aggregate principal amount of $1,000,000 or a whole multiple of $500,000 in
excess thereof and (3) with respect to Swingline Loans, in an aggregate principal amount of
$500,000 or a whole multiple of $100,000 in excess thereof, (C) whether such Loan is to be a
Revolving Credit Loan or Swingline Loan, (D) in the case of a Revolving Credit Loan, whether such
Loan is to be a LIBOR Rate Loan or a Base Rate Loan, and (E) in the case of a LIBOR Rate Loan, the
duration of the Interest Period applicable thereto. A Notice of Borrowing received after 11:00
a.m. shall be deemed received on the next Business Day. The Administrative Agent shall promptly
notify the Revolving Credit Lenders of each Notice of Borrowing.

     (b) Disbursement of Revolving Credit and Swingline Loans. Not later than 1:00 p.m. on
the proposed borrowing date, (i) each Revolving Credit Lender will make available to the
Administrative Agent, for the account of the Borrowers, at the office of the Administrative Agent
in funds immediately available to the Administrative Agent, such Revolving Credit Lender’s
Revolving Credit Commitment Percentage of the Revolving Credit Loans to be made on such borrowing
date and (ii) the Swingline Lender will make available to the Administrative Agent, for the account
of the Borrowers, at the office of the Administrative Agent in funds immediately available to the
Administrative Agent, the Swingline Loans to be made on such borrowing date. The Borrowers hereby
irrevocably authorize the Administrative Agent to disburse the proceeds of

AMENDED AND RESTATED CREDIT AGREEMENT — Page 34

 

 

each borrowing requested pursuant to this Section in immediately available funds by crediting
or wiring such proceeds to the deposit account of a Borrower identified in the most recent notice
substantially in the form attached as Exhibit C (a “Notice of Account Designation”)
delivered by the Borrower Agent to the Administrative Agent or as may be otherwise agreed upon by
the Borrower Agent and the Administrative Agent from time to time. Subject to Section 5.7
hereof, the Administrative Agent shall not be obligated to disburse the portion of the proceeds of
any Revolving Credit Loan requested pursuant to this Section to the extent that any Revolving
Credit Lender has not made available to the Administrative Agent its Revolving Credit Commitment
Percentage of such Loan. Revolving Credit Loans to be made for the purpose of refunding Swingline
Loans shall be made by the Revolving Credit Lenders as provided in Section 2.2(b).

     SECTION 2.4 Repayment and Prepayment of Revolving Credit Loans and Swingline Loans.

     (a) Repayment on Termination Date. The Borrowers hereby agree to repay the
outstanding principal amount of (i) all Revolving Credit Loans in full on the Revolving Credit
Maturity Date, and (ii) all Swingline Loans in accordance with Section 2.2(b) (but, in any
event, no later than the Revolving Credit Maturity Date), together, in each case, with all accrued
but unpaid interest thereon.

     (b) Mandatory Prepayments due to Overadvances. If at any time the Revolving Credit
Outstandings exceed the lesser of the Revolving Credit Commitment and the Borrowing Base, the
Borrowers agree to repay, immediately upon notice from the Administrative Agent, and by payment to
the Administrative Agent for the account of the Revolving Credit Lenders, Extensions of Credit in
an amount equal to such excess, with each such repayment applied first, to the principal
amount of outstanding Swingline Loans, second to the principal amount of outstanding
Revolving Credit Loans and third, with respect to any Letters of Credit then outstanding, a
payment of cash collateral into a cash collateral account opened by the Administrative Agent, for
the benefit of the Revolving Credit Lenders, in an amount not to exceed the aggregate L/C
Obligations then outstanding (such cash collateral to be applied in accordance with Section
12.2(b)).

     (c) Optional Prepayments. The Borrowers may at any time and from time to time prepay
Revolving Credit Loans and Swingline Loans, in whole or in part, with irrevocable prior written
notice to the Administrative Agent substantially in the form attached as Exhibit D (a “Notice
of Prepayment”) given not later than 11:00 a.m. (i) on the same Business Day as each date of
prepayment of a Base Rate Loan or Swingline Loan and (ii) at least three (3) Business Days before
each date of prepayment of a LIBOR Rate Loan, specifying the date and amount of prepayment and
whether the prepayment is of LIBOR Rate Loans, Base Rate Loans, Swingline Loans or a combination
thereof, and, if of a combination thereof, the amount allocable to each. Upon receipt of such
notice, the Administrative Agent shall promptly notify each Revolving Credit Lender. If any such
notice is given, the amount specified in such notice shall be due and payable on the date set forth
in such notice. Partial prepayments, except for mandatory prepayments required under Section
2.4(b) or Section 2.4(d), shall be in an aggregate amount of $100,000 or a whole
multiple of $100,000 in excess thereof with respect to Base Rate Loans (other than Swingline
Loans), $100,000 or a whole multiple of $100,000 in excess thereof with respect to LIBOR Rate Loans
and $100,000 or a whole multiple of $100,000 in excess thereof with respect to Swingline Loans. A
Notice of Prepayment received after 11:00 a.m. shall be deemed received on the next Business Day.
Each such repayment shall be accompanied by any amount required to be paid pursuant to Section
5.9 hereof.

     (d) Prepayment of Excess Proceeds. In the event proceeds remain after the prepayments
of the Term Loan Facilities pursuant to Section 4.4(b), the amount of such excess

AMENDED AND RESTATED CREDIT AGREEMENT — Page 35

 

 

proceeds shall be used on the date of the required prepayment under Section 4.4(b) to
prepay the outstanding principal amount of the Revolving Credit Loans, without a corresponding
reduction of the Revolving Credit Commitment.

     (e) Limitation on Prepayment of LIBOR Rate Loans. The Borrowers may not prepay any
LIBOR Rate Loan on any day other than on the last day of the Interest Period applicable thereto
unless such prepayment is accompanied by any amount required to be paid pursuant to Section
5.9 hereof.

     (f) Hedge Agreements. No repayment or prepayment pursuant to this Section shall
affect any Credit Party’s obligations under any Hedge Agreement.

     SECTION 2.5 Permanent Reduction of the Revolving Credit Commitment.

     (a) Voluntary Reduction. The Borrower Agent shall have the right at any time and from
time to time, upon at least five (5) Business Days prior written notice to the Administrative
Agent, to permanently reduce, without premium or penalty, (i) the entire Revolving Credit
Commitment at any time or (ii) portions of the Revolving Credit Commitment, from time to time, in
an aggregate principal amount not less than $1,000,000 or any whole multiple of $500,000 in excess
thereof. Any reduction of the Revolving Credit Commitment shall be applied to the Revolving Credit
Commitment of each Revolving Credit Lender according to its Revolving Credit Commitment Percentage.
All commitment fees accrued until the effective date of any termination of the Revolving Credit
Commitment shall be paid on the effective date of such termination.

     (b) [Intentionally omitted.]

     (c) [Intentionally omitted.]

     (d) Corresponding Payment. Each permanent reduction permitted pursuant to this
Section shall be accompanied by a payment of principal sufficient to reduce the aggregate
outstanding Revolving Credit Loans, Swingline Loans and L/C Obligations, as applicable, after such
reduction to the lesser of the Revolving Credit Commitment as so reduced and the Borrowing Base
and, if the lesser of the Revolving Credit Commitment as so reduced and the Borrowing Base is less
than the sum of the aggregate outstanding Revolving Credit Loans, Swingline Loans and L/C
Obligations, the Borrowers shall be required to prepay the aggregate outstanding Revolving Credit
Loans and Swingline Loans and/or deposit cash collateral in a cash collateral account opened by the
Administrative Agent to secure the outstanding L/C Obligations in an aggregate amount such that,
after giving effect thereto, the sum of the aggregate outstanding Revolving Credit Loans and
Swingline Loans and L/C Obligations which are not so cash collateralized does not exceed the lesser
of the Revolving Credit Commitment as so reduced and the Borrowing Base. Such cash collateral
shall be applied in accordance with Section 12.2(b). Any reduction of the Revolving Credit
Commitment to zero shall be accompanied by payment of all outstanding Revolving Credit Loans and
Swingline Loans (and furnishing of cash collateral satisfactory to the Administrative Agent for all
L/C Obligations) and shall result in the termination of the Revolving Credit Commitment and the L/C
Commitment and the Revolving Credit Facility. If the reduction of the Revolving Credit Commitment
requires the repayment of any LIBOR Rate Loan, such repayment shall be accompanied by any amount
required to be paid pursuant to Section 5.9 hereof.

     SECTION 2.6 Termination of Revolving Credit Facility. The Revolving Credit Facility
and the Revolving Credit Commitment, as well as the L/C Commitment, shall terminate on the
Revolving Credit Maturity Date.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 36

 

 

ARTICLE III

LETTER OF CREDIT FACILITY

     SECTION 3.1 L/C Commitment.

     (a) Availability. Subject to the terms and conditions hereof, the Issuing Lender, in
reliance on the agreements of the other Lenders set forth in Section 3.4(a), agrees to
issue standby letters of credit (the “Letters of Credit”) for the account of the Borrowers
on any Business Day from the Closing Date through but not including the fifth (5th) Business Day
prior to the Revolving Credit Maturity Date in such form as may be approved from time to time by
the Issuing Lender; provided, that the Issuing Lender shall have no obligation to issue any
Letter of Credit if, after giving effect to such issuance, (a) the L/C Obligations would exceed the
L/C Commitment or (b) the Revolving Credit Outstandings would exceed the lesser of the Revolving
Credit Commitment or the Borrowing Base. Each Letter of Credit shall (i) be denominated in Dollars
in a minimum amount of $100,000, (or such lesser amount as agreed to by the Issuing Lender), (ii)
be a standby letter of credit issued to support obligations of the Borrower or any of its
Subsidiaries, contingent or otherwise, (iii) expire on a date no more than twelve (12) months after
the date of issuance or last renewal of such Letter of Credit (subject to automatic renewal for
additional one (1) year periods pursuant to the terms of the Letter of Credit Application or other
documentation acceptable to the Issuing Lender), which date shall be no later than the fifth (5th)
Business Day prior to the Revolving Credit Maturity Date and (iv) be subject to the Uniform Customs
and/or ISP98, as set forth in the Letter of Credit Application or as determined by the Issuing
Lender and, to the extent not inconsistent therewith, the laws of the State of Texas. The Issuing
Lender shall not at any time be obligated to issue any Letter of Credit hereunder if such issuance
would conflict with, or cause the Issuing Lender or any L/C Participant to exceed any limits
imposed by, any Applicable Law. References herein to “issue” and derivations thereof with respect
to Letters of Credit shall also include extensions or modifications of any outstanding Letters of
Credit, unless the context otherwise requires. The L/C Commitment shall automatically terminate
concurrently with the termination of the Revolving Credit Commitment.

     (b) Defaulting Lenders. Notwithstanding anything to the contrary contained in this
Section 2.3, the Issuing Lender shall not be obligated to issue any Letter of Credit at a
time when any other Revolving Credit Lender is a Defaulting Lender, unless the Issuing Lender has
entered into arrangements satisfactory to it to eliminate the Issuing Lender’s risk with respect to
any such Defaulting Lender’s reimbursement obligations hereunder, including by cash collateralizing
such Defaulting Lender’s Revolving Credit Commitment Percentage of the liability with respect to
such Letter of Credit. On demand by the Issuing Lender or the Administrative Agent from time to
time, the Borrowers shall cash collateralize each Defaulting Lender’s Revolving Credit Commitment
Percentage of the outstanding L/C Obligations on terms reasonably satisfactory to the
Administrative Agent and the Issuing Lender. Any such cash collateral shall be deposited in a
separate account with the Administrative Agent, subject to the exclusive dominion and control of
the Administrative Agent, as collateral (solely for the benefit of the Issuing Lender) for the
payment and performance of each Defaulting Lender’s Revolving Credit Commitment Percentage of
outstanding L/C Obligations. Moneys in such account shall be applied by the Administrative Agent
to reimburse the Issuing Lender immediately for each Defaulting Lender’s Revolving Credit
Commitment Percentage of any drawing under any Letter of Credit which has not otherwise been
reimbursed by the Borrowers or such Defaulting Lender pursuant to the terms of this Section
3.1.

     SECTION 3.2 Procedure for Issuance of Letters of Credit. The Borrower Agent may from
time to time request that the Issuing Lender issue a Letter of Credit by delivering to the Issuing
Lender at the Administrative Agent’s Office a Letter of Credit Application therefor, completed to

AMENDED AND RESTATED CREDIT AGREEMENT — Page 37

 

 

the satisfaction of the Issuing Lender, and such other certificates, documents and other
papers and information as the Issuing Lender may request. Upon receipt of any Letter of Credit
Application, the Issuing Lender shall process such Letter of Credit Application and the
certificates, documents and other papers and information delivered to it in connection therewith in
accordance with its customary procedures and shall, subject to Section 3.1 and Article
VI, promptly issue the Letter of Credit requested thereby (but in no event shall the Issuing
Lender be required to issue any Letter of Credit earlier than three (3) Business Days after its
receipt of the Letter of Credit Application therefor and all such other certificates, documents and
other papers and information relating thereto) by issuing the original of such Letter of Credit to
the beneficiary thereof or as otherwise may be agreed by the Issuing Lender and the Borrower Agent.
The Issuing Lender shall promptly furnish to the Borrower Agent a copy of such Letter of Credit
and promptly notify each Revolving Credit Lender of such issuance and, upon request by any
Revolving Credit Lender, furnish to such Lender a copy of such Revolving Credit Letter of Credit
and the amount of such Revolving Credit Lender’s participation therein.

     SECTION 3.3 Commissions and Other Charges.

     (a) Letter of Credit Commissions. The Borrowers shall pay to the Administrative
Agent, for the account of the Issuing Lender and the L/C Participants, a letter of credit
commission with respect to each Letter of Credit in the amount equal to the average undrawn amount
of such Letter of Credit during the period with respect to which such commission is payable
multiplied by the Applicable Margin with respect to Revolving Credit Loans that are LIBOR
Rate Loans (determined on a per annum basis). Such commission shall be payable quarterly in
arrears on the last Business Day of each calendar quarter, on the Revolving Credit Maturity Date
and thereafter on demand of the Administrative Agent. The Administrative Agent shall, promptly
following its receipt thereof, distribute to the Issuing Lender and the L/C Participants all
commissions received pursuant to this Section in accordance with their respective Revolving Credit
Commitment Percentages.

     (b) Issuance Fee. In addition to the foregoing commission, the Borrowers shall pay to
the Administrative Agent, for the account of the Issuing Lender, an issuance fee with respect to
each Letter of Credit in an amount equal to 0.25% per annum of the average undrawn amount of such
Letter of Credit during the period with respect to which such fee is payable. Such issuance fee
shall be payable quarterly in arrears on the last Business Day of each calendar quarter commencing
with the first such date to occur after the issuance of such Letter of Credit, on the Revolving
Credit Maturity Date and thereafter on demand of the Administrative Agent.

     (c) Other Costs. In addition to the foregoing fees and commissions, the Borrowers
shall pay or reimburse the Issuing Lender for such normal and customary fees, costs and expenses as
are incurred or charged by the Issuing Lender in issuing, effecting payment under, amending or
otherwise administering any Letter of Credit.

     SECTION 3.4 L/C Participations.

     (a) The Issuing Lender irrevocably agrees to grant, and hereby grants, to each L/C
Participant, and, to induce the Issuing Lender to issue Letters of Credit hereunder, each L/C
Participant irrevocably agrees to accept and purchase and hereby accepts and purchases from the
Issuing Lender, on the terms and conditions hereinafter stated and for such L/C Participant’s own
account and risk, an undivided interest equal to such L/C Participant’s Revolving Credit Commitment
Percentage in the Issuing Lender’s obligations and rights under and in respect of each Letter of
Credit issued hereunder and the amount of each draft paid by the Issuing Lender thereunder. Each
L/C Participant unconditionally and irrevocably agrees with the Issuing Lender

AMENDED AND RESTATED CREDIT AGREEMENT — Page 38

 

 

that, if a draft is paid under any Letter of Credit for which the Issuing Lender is not
reimbursed in full by the Borrowers through a Revolving Credit Loan or otherwise in accordance with
the terms of this Agreement, such L/C Participant shall pay to the Issuing Lender, upon demand at
the Issuing Lender’s address for notices specified herein, an amount equal to such L/C
Participant’s Revolving Credit Commitment Percentage of the amount of such draft, or any part
thereof, which is not so reimbursed.

     (b) Upon becoming aware of any amount required to be paid by any L/C Participant to the
Issuing Lender pursuant to Section 3.4(a) in respect of any unreimbursed portion of any
payment made by the Issuing Lender under any Letter of Credit, the Issuing Lender shall notify each
L/C Participant of the amount and due date of such required payment and such L/C Participant shall
pay to the Issuing Lender the amount specified on the applicable due date. If any such amount is
paid to the Issuing Lender after the date such payment is due, such L/C Participant shall pay to
the Issuing Lender on demand, in addition to such amount, the product of (i) such amount,
times (ii) the daily average Federal Funds Rate as determined by the Administrative Agent
during the period from and including the date such payment is due to the date on which such payment
is immediately available to the Issuing Lender, times (iii) a fraction the numerator of
which is the number of days that elapse during such period and the denominator of which is 360. A
certificate of the Issuing Lender with respect to any amounts owing under this Section shall be
conclusive in the absence of manifest error. With respect to payment to the Issuing Lender of the
unreimbursed amounts described in this Section, if the L/C Participants receive notice that any
such payment is due (A) prior to 1:00 p.m. on any Business Day, such payment shall be due that
Business Day, and (B) after 1:00 p.m. on any Business Day, such payment shall be due on the
following Business Day.

     (c) Whenever, at any time after the Issuing Lender has made payment under any Letter of Credit
and has received from any L/C Participant its Revolving Credit Commitment Percentage of such
payment in accordance with this Section, the Issuing Lender receives any payment related to such
Letter of Credit (whether directly from the Borrowers or otherwise), or any payment of interest on
account thereof, the Issuing Lender will distribute to such L/C Participant its pro
rata share thereof; provided, that in the event that any such payment received by
the Issuing Lender shall be required to be returned by the Issuing Lender, such L/C Participant
shall return to the Issuing Lender the portion thereof previously distributed by the Issuing Lender
to it.

     SECTION 3.5 Reimbursement Obligation of the Borrowers. In the event of any drawing
under any Letter of Credit, the Borrowers agree to reimburse (either with the proceeds of a
Revolving Credit Loan as provided for in this Section or with funds from other sources), in same
day funds, the Issuing Lender on each date on which the Issuing Lender notifies the Borrower Agent
of the date and amount of a draft paid under any Letter of Credit for the amount of (a) such draft
so paid and (b) any amounts referred to in Section 3.3(c) incurred by the Issuing Lender in
connection with such payment. Unless the Borrower Agent shall immediately notify the Issuing
Lender that the Borrowers intend to reimburse the Issuing Lender for such drawing from other
sources or funds, the Borrower Agent shall be deemed to have timely given a Notice of Borrowing to
the Administrative Agent requesting that the Revolving Credit Lenders make a Revolving Credit Loan
bearing interest at the Base Rate on such date in the amount of (a) such draft so paid and (b) any
amounts referred to in Section 3.3(c) incurred by the Issuing Lender in connection with
such payment, and the Revolving Credit Lenders shall make a Revolving Credit Loan bearing interest
at the Base Rate in such amount, the proceeds of which shall be applied to reimburse the Issuing
Lender for the amount of the related drawing and costs and expenses. Each Revolving Credit Lender
acknowledges and agrees that its obligation to fund a Revolving Credit Loan in accordance with this
Section to reimburse the Issuing Lender for any draft paid under a Letter of

AMENDED AND RESTATED CREDIT AGREEMENT — Page 39

 

 

Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever,
including, without limitation, non-satisfaction of the conditions set forth in Section
2.3(a) or Article VI. If the Borrowers have elected to pay the amount of such drawing
with funds from other sources and shall fail to reimburse the Issuing Lender as provided above, the
unreimbursed amount of such drawing shall bear interest at the rate which would be payable on any
outstanding Base Rate Loans which were then overdue from the date such amounts become payable
(whether at stated maturity, by acceleration or otherwise) until payment in full.

     SECTION 3.6 Obligations Absolute. The Borrowers’ obligations under this Article
III (including, without limitation, the Reimbursement Obligations) shall be absolute and
unconditional under any and all circumstances and irrespective of any set off, counterclaim or
defense to payment which any Borrower may have or have had against the Issuing Lender or any
beneficiary of a Letter of Credit or any other Person. The Borrowers also agree that the Issuing
Lender and the L/C Participants shall not be responsible for, and the Borrowers’ Reimbursement
Obligations under Section 3.5 shall not be affected by, among other things, the validity or
genuineness of documents or of any endorsements thereon, even though such documents shall in fact
prove to be invalid, fraudulent or forged, or any dispute between or among any Borrower and any
beneficiary of any Letter of Credit or any other party to which such Letter of Credit may be
transferred or any claims whatsoever of any Borrower against any beneficiary of such Letter of
Credit or any such transferee. The Issuing Lender shall not be liable for any error, omission,
interruption or delay in transmission, dispatch or delivery of any message or advice, however
transmitted, in connection with any Letter of Credit, except for errors or omissions caused by the
Issuing Lender’s gross negligence or willful misconduct, as determined by a court of competent
jurisdiction by final nonappealable judgment. The Borrowers agree that any action taken or omitted
by the Issuing Lender under or in connection with any Letter of Credit or the related drafts or
documents, if done in the absence of gross negligence or willful misconduct, shall be binding on
the Borrowers and shall not result in any liability of the Issuing Lender or any L/C Participant to
any Borrower. The responsibility of the Issuing Lender to any Credit Party in connection with any
draft presented for payment under any Letter of Credit shall, in addition to any payment obligation
expressly provided for in such Letter of Credit, be limited to determining that the documents
(including each draft) delivered under such Letter of Credit in connection with such presentment
are in conformity with such Letter of Credit.

     SECTION 3.7 Effect of Letter of Credit Application. To the extent that any provision
of any Letter of Credit Application related to any Letter of Credit is inconsistent with the
provisions of this Article III, the provisions of this Article III shall apply.

ARTICLE IV

TERM LOAN FACILITY

     SECTION 4.1 Term Loans.

     (a) Refinancing Term Loan. Subject to the terms and conditions of this Agreement,
each Refinancing Term Loan Lender severally agrees to make the Refinancing Term Loan to the
Borrowers on the Closing Date in a principal amount equal to such Lender’s Refinancing Term Loan
Commitment as of the Closing Date.

     (b) Additional Term Loan. Subject to the terms and conditions of this Agreement, each
Additional Term Loan Lender severally agrees to make the Additional Term Loan to the Borrowers on
the Closing Date in a principal amount equal to such Lender’s Additional Term Loan Commitment as of
the Closing Date.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 40

 

 

     SECTION 4.2 Procedure for Advance of Term Loans.

     (a) Refinancing Term Loan. The Borrowers, the Administration Agent and the
Refinancing Term Loan Lenders agree that the Refinancing Term Loan Lenders shall make the
Refinancing Term Loan as a Base Rate Loan on the Closing Date (provided that the Borrowers may
request, no later than three (3) Business Days prior to the Closing Date, that the Lenders make the
Refinancing Term Loan as a LIBOR Rate Loan if the Borrowers have delivered to the Administrative
Agent a letter in form and substance reasonably satisfactory to the Administrative Agent
indemnifying the Lenders in the manner set forth in Section 5.9 of this Agreement). Not
later than 1:00 p.m. on the Closing Date, each Refinancing Term Loan Lender will make available to
the Administrative Agent for the account of the Borrowers, at the Administrative Agent’s Office in
immediately available funds, the amount of such Refinancing Term Loan to be made by such
Refinancing Term Loan Lender on the Closing Date. The Borrowers hereby irrevocably authorize the
Administrative Agent to disburse the entirety of the proceeds of the Refinancing Term Loan (and a
sufficient amount of the proceeds of the Revolving Credit Loans advanced on the Closing Date) in
immediately available funds by wire transfer to the lenders under the Existing Credit Agreement for
the purpose of paying in full the Existing Term Loan and all interest accrued thereon.

     (b) Additional Term Loans. The Borrowers, the Administration Agent and the Additional
Term Loan Lenders agree that the Additional Term Loan Lenders shall make the Additional Term Loan
as a Base Rate Loan on the Closing Date (provided that the Borrowers may request, no later than
three (3) Business Days prior to the Closing Date, that the Lenders make the Additional Term Loan
as a LIBOR Rate Loan if the Borrowers have delivered to the Administrative Agent a letter in form
and substance reasonably satisfactory to the Administrative Agent indemnifying the Lenders in the
manner set forth in Section 5.9 of this Agreement). Not later than 1:00 p.m. on the
Closing Date, each Additional Term Loan Lender will make available to the Administrative Agent for
the account of the Borrowers, at the Administrative Agent’s Office in immediately available funds,
the amount of such Additional Term Loan to be made by such Additional Term Loan Lender on the
Closing Date.

     SECTION 4.3 Repayment of Term Loans.

     (a) Refinancing Term Loan. The Borrowers shall repay the aggregate outstanding
principal amount of the Refinancing Term Loan (i) in consecutive quarterly installments of
$1,222,685.18 each on the last Business Day of each of March, June, September and December,
commencing March 31, 2011, and (ii) in one final payment on the Scheduled Maturity Date in an
amount equal to the then unpaid principal amount of the Refinancing Term Loan (except as the
amounts of individual installments may be adjusted pursuant to Section 4.4 hereof);
provided, that if not sooner paid, the Refinancing Term Loan shall be paid in full,
together with accrued interest thereon, on the Refinancing Term Loan Maturity Date.

     (b) Additional Term Loan. The Borrowers shall repay the aggregate outstanding
principal amount of the Additional Term Loan (i) in consecutive quarterly installments of $500,000
each on the last Business Day of each of March, June, September and December, commencing March 31,
2011, and (ii) in one final payment on the Scheduled Maturity Date in an amount equal to the then
unpaid principal amount of the Additional Term Loan (except as the amounts of individual
installments may be adjusted pursuant to Section 4.4 hereof); provided, that if not
sooner paid, the Additional Term Loan shall be paid in full, together with accrued interest
thereon, on the Additional Term Loan Maturity Date.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 41

 

 

     SECTION 4.4 Prepayments of Term Loans.

     (a) Optional Prepayments. The Borrowers shall have the right at any time and from
time to time, without premium or penalty, to prepay the Term Loans, in whole or in part, upon
delivery to the Administrative Agent of a Notice of Prepayment not later than 11:00 a.m. (i) on the
same Business Day as each Base Rate Loan and (ii) at least three (3) Business Days before each
LIBOR Rate Loan, specifying the date and amount of repayment and whether the repayment is of LIBOR
Rate Loans or Base Rate Loans or a combination thereof, and, if of a combination thereof, the
amount allocable to each. Each optional prepayment of any Term Loan hereunder shall be in an
aggregate principal amount of at least $1,000,000 or any whole multiple of $1,000,000 in excess
thereof and shall be applied, on a pro rata basis, to the outstanding principal installments of the
applicable Term Loan as directed by the Borrower Agent. Each repayment shall be accompanied by any
amount required to be paid pursuant to Section 5.9 hereof. A Notice of Prepayment received
after 11:00 a.m. shall be deemed received on the next Business Day. The Administrative Agent shall
promptly notify the Term Loan Lenders of each Notice of Prepayment.

     (b) Mandatory Prepayments.

     (i) [Intentionally omitted.]

     (ii) [Intentionally omitted.]

     (iii) [Intentionally omitted.]

     (iv) Insurance and Condemnation Events. The Borrowers shall make mandatory
principal prepayments of the Loans in the manner set forth in clause (v) below in
an amount equal to one hundred percent (100%) of the aggregate Net Cash Proceeds from any
Insurance and Condemnation Event by any Borrower or any of its Subsidiaries. Such
prepayments shall be made within five (5) Business Days after the date of receipt of Net
Cash Proceeds of any such Insurance and Condemnation Event by such Borrower or such
Subsidiary; provided that, so long as no Default or Event of Default has occurred
and is continuing, no prepayments shall be required hereunder in connection with the
aggregate Net Cash Proceeds from Insurance and Condemnation Events by any Borrower or any
of its Subsidiaries which are reinvested in similar replacement assets or in capital
expenditures for existing or new stores within three hundred sixty (360) days after receipt
of such Net Cash Proceeds by such Borrower or such Subsidiary; provided, that any
portion of the Net Cash Proceeds not actually reinvested within such three hundred sixty
(360) day period shall be prepaid in accordance with this Section.

     (v) Notice; Manner of Payment. Upon the occurrence of any event triggering
the prepayment requirement under clauses (i) through and including (iv) above, the
Borrowers shall promptly deliver a Notice of Prepayment to the Administrative Agent and,
upon receipt of such notice, the Administrative Agent shall promptly so notify the Lenders.
Each prepayment of the Loans under this Section shall be applied as follows: (i)
first, to reduce in inverse order of maturity the remaining scheduled principal
installments of the Refinancing Term Loan, (ii) second, to reduce in inverse order
of maturity the remaining scheduled principal installments of the Additional Term Loan, and
(iii) third, to the extent of any excess, to repay the Revolving Credit Loans
pursuant to Section 2.4(d).

     (vi) No Reborrowings. Amounts prepaid under the Term Loan pursuant to this
Section may not be reborrowed. Each prepayment shall be accompanied by any amount

AMENDED AND RESTATED CREDIT AGREEMENT — Page 42

 

 

required to be paid pursuant to Section 5.9. The Term Loans Commitments shall
automatically terminate on the Closing Date upon the making of the Term Loans.

ARTICLE V

GENERAL LOAN PROVISIONS

     SECTION 5.1 Interest.

     (a) Interest Rate Options. Subject to the provisions of this Section, at the election
of the Borrower Agent, (i) Revolving Credit Loans and the Term Loans shall bear interest at (A) the
Base Rate plus the Applicable Margin or (B) the LIBOR Rate plus the Applicable Margin
(provided that the LIBOR Rate shall not be available until three (3) Business Days after
the Closing Date unless the Borrower Agent has delivered to the Administrative Agent a letter in
form and substance reasonably satisfactory to the Administrative Agent indemnifying the Lenders in
the manner set forth in Section 5.9 of this Agreement) and (ii) any Swingline Loan shall
bear interest at the Base Rate plus the Applicable Margin. The Borrower Agent shall select
the rate of interest and Interest Period, if any, applicable to any Loan at the time a Notice of
Borrowing is given or at the time a Notice of Conversion/Continuation is given pursuant to
Section 5.2. Any Loan or any portion thereof as to which the Borrower Agent has not duly
specified an interest rate as provided herein shall be deemed a Base Rate Loan.

     (b) Interest Periods. In connection with each LIBOR Rate Loan, the Borrower Agent, by
giving notice at the times described in Section 2.3 or 5.2, as applicable, shall
elect an interest period (each, an “Interest Period”) to be applicable to such Loan, which
Interest Period shall be a period of one (1), two (2), three (3) or six (6) months;
provided that:

     (i) the Interest Period shall commence on the date of advance of or conversion to any
LIBOR Rate Loan and, in the case of immediately successive Interest Periods, each
successive Interest Period shall commence on the date on which the immediately preceding
Interest Period expires;

     (ii) if any Interest Period would otherwise expire on a day that is not a Business
Day, such Interest Period shall expire on the next succeeding Business Day; provided that,
if any Interest Period with respect to a LIBOR Rate Loan would otherwise expire on a day
that is not a Business Day but is a day of the month after which no further Business Day
occurs in such month, such Interest Period shall expire on the immediately preceding
Business Day;

     (iii) any Interest Period with respect to a LIBOR Rate Loan that begins on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period) shall end on
the last Business Day of the relevant calendar month at the end of such Interest Period;

     (iv) no Interest Period shall extend beyond the Revolving Credit Maturity Date, the
Refinancing Term Loan Maturity Date or the Additional Term Loan Maturity Date, as
applicable, and Interest Periods shall be selected by the Borrower Agent so as to permit
the Borrowers to make the quarterly principal installment payments pursuant to Section
4.3 without payment of any amounts pursuant to Section 5.9; and

     (v) there shall be no more than six (6) Interest Periods in effect at any time.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 43

 

 

     (c) Default Rate. Subject to Section 12.3, (i) immediately upon the
occurrence and during the continuance of an Event of Default under Section 12.1(a),
(b), (i) or (j), or (ii) at the election of the Required Lenders, upon the
occurrence and during the continuance of any other Event of Default, (A) the Borrower Agent shall
no longer have the option to request LIBOR Rate Loans, Swingline Loans or Letters of Credit, (B)
all outstanding LIBOR Rate Loans shall bear interest at a rate per annum of two percent (2%) in
excess of the rate (including the Applicable Margin) then applicable to LIBOR Rate Loans until the
end of the applicable Interest Period and thereafter at a rate equal to two percent (2%) in excess
of the rate (including the Applicable Margin) then applicable to Base Rate Loans, and (C) all
outstanding Base Rate Loans and other Obligations arising hereunder or under any other Loan
Document shall bear interest at a rate per annum equal to two percent (2%) in excess of the rate
(including the Applicable Margin) then applicable to Base Rate Loans or such other Obligations
arising hereunder or under any other Loan Document. Interest shall continue to accrue on the
Obligations after the filing by or against any Borrower of any petition seeking any relief in
bankruptcy or under any act or law pertaining to insolvency or debtor relief, whether state,
federal or foreign.

     (d) Interest Payment and Computation. Interest on each Base Rate Loan shall be due
and payable in arrears on the last Business Day of each calendar quarter commencing March 31, 2011;
and interest on each LIBOR Rate Loan shall be due and payable on the last day of each Interest
Period applicable thereto, and if such Interest Period extends over three (3) months, at the end of
each three (3) month interval during such Interest Period. All computations of interest for Base
Rate Loans when the Base Rate is determined by the Prime Rate shall be made on the basis of a year
of 365 or 366 days, as the case may be, and actual days elapsed. All other computations of fees
and interest provided hereunder shall be made on the basis of a 360-day year and actual days
elapsed (which results in more fees or interest, as applicable, being paid than if computed on the
basis of a 365/366-day year).

     (e) Maximum Rate. In no contingency or event whatsoever shall the aggregate of all
amounts deemed interest under this Agreement contracted for, charged, received or collected
pursuant to the terms of this Agreement exceed the highest rate permissible under any Applicable
Law which a court of competent jurisdiction shall, in a final determination, deem applicable
hereto. In the event that such a court determines that the Lenders have contracted for, charged,
received or collected interest hereunder in excess of the highest applicable rate, the rate in
effect hereunder shall automatically be reduced to the maximum rate permitted by Applicable Law and
the Lenders shall at the Administrative Agent’s option (i) promptly refund to the Borrowers any
interest received by the Lenders in excess of the maximum lawful rate or (ii) apply such excess to
the principal balance of the Obligations on a pro rata basis. It is the intent
hereof that the Borrowers not pay or contract to pay, and that neither the Administrative Agent nor
any Lender contract for, charge or receive, or contract to charge or receive, directly or
indirectly in any manner whatsoever, interest in excess of that which may be paid by the Borrowers
under Applicable Law. In determining whether the interest contracted for, charged or received by
the Administrative Agent or any Lender exceeds the highest rate permissible under Applicable Law,
such Person may, to the maximum extent permitted by Applicable Law, (A) characterize any payment
that is not principal as an expense, fee or premium rather than interest, (B) exclude voluntary
prepayments and the effects thereof, and (C) amortize, prorate, allocate and spread, in equal or
unequal parts, the total amount of interest throughout the contemplated term of the Obligations
hereunder.

     SECTION 5.2 Notice and Manner of Conversion or Continuation of Loans. Provided that
no Default or Event of Default has occurred and is then continuing, the Borrowers shall have the
option to (a) convert at any time following the third Business Day after the Closing Date all or
any portion of any outstanding Base Rate Loans (other than Swingline Loans) in a principal amount

AMENDED AND RESTATED CREDIT AGREEMENT — Page 44

 

 

equal to $1,000,000 or any whole multiple of $500,000 in excess thereof into one or more LIBOR
Rate Loans and (b) upon the expiration of any Interest Period, (i) convert all or any part of its
outstanding LIBOR Rate Loans in a principal amount equal to $1,000,000 or a whole multiple of
$500,000 in excess thereof into Base Rate Loans (other than Swingline Loans) or (ii) continue such
LIBOR Rate Loans as LIBOR Rate Loans. Whenever the Borrowers desire to convert or continue Loans
as provided above, the Borrower Agent shall give the Administrative Agent irrevocable prior written
notice in the form attached as Exhibit E (a “Notice of Conversion/Continuation”) not later
than 11:00 a.m. three (3) Business Days before the day on which a proposed conversion or
continuation of such Loan is to be effective specifying (A) the Loans to be converted or continued,
and, in the case of any LIBOR Rate Loan to be converted or continued, the last day of the Interest
Period therefor, (B) the effective date of such conversion or continuation (which shall be a
Business Day), (C) the principal amount of such Loans to be converted or continued, and (D) the
Interest Period to be applicable to such converted or continued LIBOR Rate Loan. The
Administrative Agent shall promptly notify the affected Lenders of such Notice of
Conversion/Continuation.

     SECTION 5.3 Fees.

     (a) Commitment Fee. Commencing on the Closing Date, the Borrowers shall pay to the
Administrative Agent, for the account of the Revolving Credit Lenders (other than any Defaulting
Lender), a non-refundable commitment fee (the “Commitment Fee”) at a rate per annum equal
to 0.25% on the average daily unused portion of the Revolving Credit Commitment of the Revolving
Credit Lenders (other than the Defaulting Lenders, if any); provided, that the amount of
outstanding Swingline Loans shall not be considered usage of the Revolving Credit Commitment for
the purpose of calculating the Commitment Fee. The Commitment Fee shall be payable in arrears on
the last Business Day of each calendar quarter during the term of this Agreement commencing March
31, 2011 and ending on the Revolving Credit Maturity Date. Such commitment fee shall be
distributed by the Administrative Agent to the Revolving Credit Lenders (other than any Defaulting
Lender) pro rata in accordance with such Revolving Credit Lenders’ respective
Revolving Credit Commitment Percentages.

     (b) [Intentionally omitted.]

     (c) Other Fees. The Borrowers shall pay to the Arranger and the Administrative Agent
for their own respective accounts fees in the amounts and at the times specified in the Fee Letter.
The Borrowers shall pay to the applicable Lender(s) such fees as shall have been separately agreed
upon (pursuant to the Fee Letter or otherwise) in writing in the amounts and at the times so
specified.

     SECTION 5.4 Manner of Payment.

     (a) Sharing of Payments. Each payment by the Borrowers on account of the principal of
or interest on the Loans or of any fee, commission or other amounts (including the Reimbursement
Obligations) payable to the Lenders under this Agreement (or any of them) shall be made not later
than 1:00 p.m. on the date specified for payment under this Agreement to the Administrative Agent
at the Administrative Agent’s Office for the account of the Lenders entitled to such payment in
Dollars, in immediately available funds, and shall be made without any set off, counterclaim or
deduction whatsoever. Any payment received after such time but before 2:00 p.m. on such day shall
be deemed a payment on such date for the purposes of Section 12.1, but for all other
purposes shall be deemed to have been made on the next succeeding Business Day. Any payment
received after 2:00 p.m. shall be deemed to have been made on the next succeeding Business Day for
all purposes. Upon receipt by the Administrative Agent of each such payment,

AMENDED AND RESTATED CREDIT AGREEMENT — Page 45

 

 

the Administrative Agent shall distribute to each such Lender at its address for notices set
forth herein its pro rata share of such payment in accordance with the amounts then due and payable
to such Lenders (except as specified below) and shall wire advice of the amount of such credit to
each Lender. Each payment to the Administrative Agent on account of the principal of or interest
on the Swingline Loans or of any fee, commission or other amounts payable to the Swingline Lender
shall be made in like manner, but for the account of the Swingline Lender. Each payment to the
Administrative Agent of the Issuing Lender’s fees or L/C Participants’ commissions shall be made in
like manner, but for the account of the Issuing Lender or the L/C Participants, as the case may be.
Each payment to the Administrative Agent of its fees or expenses shall be made for the account of
the Administrative Agent, and any amount payable to any Lender under Sections 5.9,
5.10, 5.11 or 14.3 shall be paid to the Administrative Agent for the
account of the applicable Lender. Subject to Section 5.1(b)(ii), if any payment under this
Agreement shall be specified to be made upon a day which is not a Business Day, it shall be made on
the next succeeding day which is a Business Day and such extension of time shall in such case be
included in computing any interest if payable along with such payment.

     (b) Defaulting Lenders. Notwithstanding Section 5.4(a), if any Defaulting
Lender shall have failed to fund all or any portion of any Revolving Credit Loan (each such
Revolving Credit Loan, an “Affected Loan”), each payment by the Borrowers hereunder shall
be applied first to such Affected Loan and the principal amount and interest with respect to such
payment shall be distributed (i) to each Revolving Credit Lender that is not a Defaulting Lender
(each, a “Non-Defaulting Lender”) pro rata based on the outstanding principal amount of
Affected Loans owing to all Non-Defaulting Lenders, until the principal amount of all Affected
Loans has been repaid in full and (ii) to the extent of any remaining amount of such payment, to
each Revolving Credit Lender as set forth in Section 5.4(a). Each payment made by the
Borrowers on account of the interest on any Affected Loans shall be distributed to each
Non-Defaulting Lender pro rata based on the outstanding principal amount of Affected Loans owing to
all Non-Defaulting Lenders. For the avoidance of doubt, if any Lender shall fail to make any
payment required to be made by it under this Agreement, then the Administrative Agent may, in its
discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received
by the Administrative Agent for the account of such Lender in any manner necessary to satisfy such
Lender’s obligations hereunder until all such unsatisfied obligations are fully paid.

     (c) Authorization regarding Certain Payments. The Borrowers authorize the
Administrative Agent to charge any deposit account maintained by a Borrower with Wells Fargo (or
any successor Administrative Agent), up to the amount available therein, in order to pay any
principal (including unreimbursed amounts drawn under Letters of Credit), interest or fees then due
by the Borrowers under this Agreement, any Note or the Fee Letter (but excluding costs and expenses
or indemnification obligations payable under Section 14.3). The Borrowers acknowledge and
agree that (i) the Administrative Agent shall not be obligated to effectuate any such charge
referred to in this Section 5.4(c), (ii) if and to the extent that the Administrative Agent
does effectuate any such charge, the same may cause an overdraft which may result in the depository
bank’s refusal to honor other items drawn on such account until adequate deposits are made to such
account, and (iii) if and to the extent that such a charge is not made, the Borrowers are
nonetheless obligated to pay all such amounts when due in accordance with this Agreement, the Notes
and/or the Fee Letter (as applicable).

     SECTION 5.5 Evidence of Indebtedness.

     (a) Extensions of Credit. The Extensions of Credit made by each Lender shall be
evidenced by one or more accounts or records maintained by such Lender and by the Administrative
Agent in the ordinary course of business. The accounts or records maintained by

AMENDED AND RESTATED CREDIT AGREEMENT — Page 46

 

 

the Administrative Agent and each Lender shall be conclusive absent manifest error of the
amount of the Extensions of Credit made by the Lenders to the Borrower and the interest and
payments thereon. Any failure to so record or any error in doing so shall not, however, limit or
otherwise affect the obligation of the Borrowers hereunder to pay any amount owing with respect to
the Obligations. In the event of any conflict between the accounts and records maintained by any
Lender and the accounts and records of the Administrative Agent in respect of such matters, the
accounts and records of the Administrative Agent shall control in the absence of manifest error.
Upon the request of any Lender made through the Administrative Agent, the Borrowers shall execute
and deliver to such Lender (through the Administrative Agent) a Revolving Credit Note, a Swingline
Note and/or a Term Loan Note, as applicable, which shall evidence such Lender’s Revolving Credit
Loans, Swingline Loans and/or Term Loans, as applicable, in addition to such accounts or records.
Each Lender may attach schedules to its Notes and endorse thereon the date, amount and maturity of
its Loans and payments with respect thereto.

     (b) Participations. In addition to the accounts and records referred to in
Section 5.5(a), each Revolving Credit Lender and the Administrative Agent shall maintain in
accordance with its usual practice accounts or records evidencing the purchases and sales by such
Revolving Credit Lender of participations in Letters of Credit and Swingline Loans. In the event
of any conflict between the accounts and records maintained by the Administrative Agent and the
accounts and records of any Revolving Credit Lender in respect of such matters, the accounts and
records of the Administrative Agent shall control in the absence of manifest error.

     SECTION 5.6 Adjustments. If any Lender shall, by exercising any right of setoff or
counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its
Loans or other Obligations hereunder resulting in such Lender’s receiving payment of a proportion
of the aggregate amount of its Loans and accrued interest thereon or other such Obligations (other
than pursuant to Sections 5.9, 5.10, 5.11 or 14.3) greater than its
pro rata share thereof as provided herein, then the Lender receiving such greater
proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at
face value) participations in the Loans and such other Obligations of the other Lenders, or make
such other adjustments as shall be equitable, so that the benefit of all such payments shall be
shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued
interest on their respective Loans and other Obligations owing them; provided that

     (i) if any such participations are purchased and all or any portion of the payment
giving rise thereto is recovered, such participations shall be rescinded and the purchase
price restored to the extent of such recovery, without interest, and

     (ii) the provisions of this Section shall not be construed to apply to (A) any payment
made by the Borrowers pursuant to and in accordance with the express terms of this
Agreement or (B) any payment obtained by a Lender as consideration for the assignment of or
sale of a participation in any of its Loans or participations in Swingline Loans and
Letters of Credit to any assignee or participant, other than to any Credit Party (as to
which the provisions of this Section shall apply).

Each Credit Party consents to the foregoing and agrees, to the extent it may effectively do so
under Applicable Law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against each Credit Party rights of setoff and counterclaim with respect
to such participation as fully as if such Lender were a direct creditor of each Credit Party in the
amount of such participation.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 47

 

 

     SECTION 5.7 Obligations of Lenders.

     (a) Funding by Lenders; Presumption by Administrative Agent. Unless the
Administrative Agent shall have received notice from a Lender prior to the proposed date of any
borrowing that such Lender will not make available to the Administrative Agent such Lender’s share
of such borrowing, the Administrative Agent may assume that such Lender has made such share
available on such date in accordance with Sections 2.3(b) and 4.2 and may, in
reliance upon such assumption, make available to the Borrowers a corresponding amount. In such
event, if a Lender has not in fact made its share of the applicable borrowing available to the
Administrative Agent, then the applicable Lender and the Borrowers severally agree to pay to the
Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each
day from and including the date such amount is made available to the Borrowers to but excluding the
date of payment to the Administrative Agent, at (i) in the case of a payment to be made by such
Lender, the greater of the daily average Federal Funds Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation and (ii)
in the case of a payment to be made by the Borrowers, the interest rate applicable to Base Rate
Loans. If the Borrowers and such Lender shall pay such interest to the Administrative Agent for
the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrowers
the amount of such interest paid by the Borrowers for such period. If such Lender pays its share
of the applicable borrowing to the Administrative Agent, then the amount so paid shall constitute
such Lender’s Loan included in such borrowing. Any payment by the Borrowers shall be without
prejudice to any claim the Borrowers may have against a Lender that shall have failed to make such
payment to the Administrative Agent.

     (b) Nature of Obligations of Lenders Regarding Extensions of Credit. The obligations
of the Lenders under this Agreement to make the Loans and issue or participate in Letters of Credit
are several and are not joint or joint and several. The failure of any Lender to make available
its Commitment Percentage of any Loan requested by the Borrower Agent shall not relieve such Lender
or any other Lender of its obligation, if any, hereunder to make its Commitment Percentage of such
Loan available on the borrowing date, but no Lender shall be responsible for the failure of any
other Lender to make its Commitment Percentage of such Loan available on the borrowing date.

     SECTION 5.8 Changed Circumstances.

     (a) Circumstances Affecting LIBOR Rate Availability. In connection with any request
for a LIBOR Rate Loan or a Base Rate Loan as to which the interest rate is determined with
reference to LIBOR or a conversion to or continuation thereof, if for any reason (i) the
Administrative Agent shall determine (which determination shall be conclusive and binding absent
manifest error) that Dollar deposits are not being offered to banks in the London interbank
Eurodollar market for the applicable amount and Interest Period of such Loan, (ii) the
Administrative Agent shall determine (which determination shall be conclusive and binding absent
manifest error) that reasonable and adequate means do not exist for the ascertaining the LIBOR Rate
for such Interest Period with respect to a proposed LIBOR Rate Loan or any Base Rate Loan as to
which the interest rate is determined with reference to LIBOR or (iii) the Required Lenders shall
determine (which determination shall be conclusive and binding absent manifest error) that the
LIBOR Rate does not adequately and fairly reflect the cost to such Lenders of making or maintaining
such Loans during such Interest Period, then the Administrative Agent shall promptly give notice
thereof to the Borrower Agent. Thereafter, until the Administrative Agent notifies the Borrower
Agent that such circumstances no longer exist, the obligation of the Lenders to make LIBOR Rate
Loans or Base Rate Loan as to which the interest rate is determined with reference to LIBOR and the
right of the Borrowers to convert any Loan to or continue any Loan as a LIBOR

AMENDED AND RESTATED CREDIT AGREEMENT — Page 48

 

 

Rate Loan or a Base Rate Loan as to which the interest rate is determined with reference to
LIBOR shall be suspended, and (i) in the case of LIBOR Rate Loans, the Borrowers shall either (A)
repay in full (or cause to be repaid in full) the then outstanding principal amount of each such
LIBOR Rate Loan together with accrued interest thereon (subject to Section 5.1(d)), on the
last day of the then current Interest Period applicable to such LIBOR Rate Loan; or (B) convert the
then outstanding principal amount of each such LIBOR Rate Loan to a Base Rate Loan as to which the
interest rate is not determined by reference to LIBOR as of the last day of such Interest Period;
or (ii) in the case of Base Rate Loans as to which the interest rate is determined by reference to
LIBOR, the Borrowers shall convert the then outstanding principal amount of each such Loan to a
Base Rate Loan as to which the interest rate is not determined by reference to LIBOR as of the last
day of such Interest Period.

     (b) Laws Affecting LIBOR Rate Availability. If, after the date hereof, the
introduction of, or any change in, any Applicable Law or any change in the interpretation or
administration thereof by any Governmental Authority, central bank or comparable agency charged
with the interpretation or administration thereof, or compliance by any of the Lenders (or any of
their respective Lending Offices) with any request or directive (whether or not having the force of
law) of any such Governmental Authority, central bank or comparable agency, shall make it unlawful
or impossible for any of the Lenders (or any of their respective Lending Offices) to honor its
obligations hereunder to make or maintain any LIBOR Rate Loan or any Base Rate Loan as to which the
interest rate is determined by reference to LIBOR, such Lender shall promptly give notice thereof
to the Administrative Agent and the Administrative Agent shall promptly give notice to the Borrower
Agent and the other Lenders. Thereafter, until the Administrative Agent notifies the Borrower
Agent that such circumstances no longer exist, (i) the obligations of the Lenders to make LIBOR
Rate Loans or Base Rate Loans as to which the interest rate is determined by reference to LIBOR,
and the right of the Borrowers to convert any Loan or continue any Loan as a LIBOR Rate Loan or a
Base Rate Loan as to which the interest rate is determined by reference to LIBOR shall be suspended
and thereafter the Borrowers may select only Base Rate Loans as to which the interest rate is not
determined by reference to LIBOR hereunder, (ii) all Base Rate Loans shall cease to be determined
by reference to LIBOR and (iii) if any of the Lenders may not lawfully continue to maintain a LIBOR
Rate Loan to the end of the then current Interest Period applicable thereto, the applicable Loan
shall immediately be converted to a Base Rate Loan as to which the interest rate is not determined
by reference to LIBOR for the remainder of such Interest Period.

     SECTION 5.9 Indemnity. Each of the Borrowers hereby jointly and severally indemnifies
each of the Lenders against any loss or expense which may arise or be attributable to each Lender’s
obtaining, liquidating or employing deposits or other funds acquired to effect, fund or maintain
any Loan (a) as a consequence of any failure by the Borrowers to make any payment when due of any
amount due hereunder in connection with a LIBOR Rate Loan, (b) due to any failure of the Borrowers
to borrow, continue or convert on a date specified therefor in a Notice of Borrowing or Notice of
Conversion/Continuation or (c) due to any payment, prepayment or conversion of any LIBOR Rate Loan
on a date other than the last day of the Interest Period therefor. The amount of such loss or
expense shall be determined, in the applicable Lender’s reasonable discretion, based upon the
assumption that such Lender funded its Commitment Percentage of the LIBOR Rate Loans in the London
interbank market and using any reasonable attribution or averaging methods which such Lender deems
appropriate and practical. A certificate of such Lender setting forth in reasonable detail the
factual basis for, and calculations used in, determining such amount or amounts necessary to
compensate such Lender shall be forwarded to the Borrower Agent through the Administrative Agent
and shall be conclusively presumed to be correct save for manifest error.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 49

 

 

     SECTION 5.10 Increased Costs.

     (a) Increased Costs Generally. If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for the account
of, or advances, loans or other credit extended or participated in by, any Lender (except
any reserve requirement reflected in the LIBOR Rate) or the Issuing Lender;

     (ii) subject any Lender or the Issuing Lender to any tax of any kind whatsoever with
respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit or
any LIBOR Rate Loan made by it, or change the basis of taxation of payments to such Lender
or the Issuing Lender in respect thereof (except for Indemnified Taxes or Other Taxes
covered by Section 5.11 and the imposition of, or any change in the rate of any
Excluded Tax payable by such Lender or the Issuing Lender); or

     (iii) impose on any Lender or the Issuing Lender or the London interbank market any
other condition, cost or expense affecting this Agreement or LIBOR Rate Loans made by such
Lender or any Letter of Credit or participation therein;

     and the result of any of the foregoing shall be to increase the cost to such Lender of
making, converting into or maintaining any LIBOR Rate Loan (or of maintaining its
obligation to make any such Loan), or to increase the cost to such Lender or the Issuing
Lender of participating in, issuing or maintaining any Letter of Credit (or of maintaining
its obligation to participate in or to issue any Letter of Credit), or to reduce the amount
of any sum received or receivable by such Lender or the Issuing Lender hereunder (whether
of principal, interest or any other amount) then, upon written request of such Lender or
the Issuing Lender, the Borrowers shall promptly pay to any such Lender or the Issuing
Lender, as the case may be, such additional amount or amounts as will compensate such
Lender or the Issuing Lender, as the case may be, for such additional costs incurred or
reduction suffered.

     (b) Capital Requirements. If any Lender or the Issuing Lender reasonably determines
that any Change in Law affecting such Lender or the Issuing Lender or any lending office of such
Lender or such Lender’s or the Issuing Lender’s holding company, if any, regarding capital
requirements has or would have the effect of reducing the rate of return on such Lender’s or the
Issuing Lender’s capital or on the capital of such Lender’s or the Issuing Lender’s holding
company, if any, as a consequence of this Agreement, the Revolving Credit Commitment of such Lender
or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters
of Credit issued by the Issuing Lender, to a level below that which such Lender or the Issuing
Lender or such Lender’s or the Issuing Lender’s holding company could have achieved but for such
Change in Law (taking into consideration such Lender’s or the Issuing Lender’s policies and the
policies of such Lender’s or the Issuing Lender’s holding company with respect to capital
adequacy), then from time to time upon written request of such Lender or such Issuing Lender the
Borrowers shall promptly pay to such Lender or the Issuing Lender, as the case may be, such
additional amount or amounts as will compensate such Lender or the Issuing Lender or such Lender’s
or the Issuing Lender’s holding company for any such reduction suffered.

     (c) Certificates for Reimbursement. A certificate of a Lender or the Issuing Lender
setting forth in reasonable detail the factual basis for, and calculations used in, determining
such amount or amounts necessary to compensate such Lender or the Issuing Lender or its holding

AMENDED AND RESTATED CREDIT AGREEMENT — Page 50

 

 

company, as the case may be, as specified in Section 5.10(a) or 5.10(b) and
delivered to the Borrower Agent shall be conclusive absent manifest error. The Borrowers shall pay
such Lender or the Issuing Lender, as the case may be, the amount shown as due on any such
certificate within ten (10) days after receipt thereof.

     (d) Delay in Requests. Failure or delay on the part of any Lender or the Issuing
Lender to demand compensation pursuant to this Section shall not constitute a waiver of such
Lender’s or the Issuing Lender’s right to demand such compensation; provided that the
Borrowers shall not be required to compensate a Lender or the Issuing Lender pursuant to this
Section for any increased costs incurred or reductions suffered more than six (6) months prior to
the date that such Lender or the Issuing Lender, as the case may be, notifies the Borrower Agent of
the Change in Law giving rise to such increased costs or reductions and of such Lender’s or the
Issuing Lender’s intention to claim compensation therefor (except that if the Change in Law giving
rise to such increased costs or reductions is retroactive, then the nine-month period referred to
above shall be extended to include the period of retroactive effect thereof).

     SECTION 5.11 Taxes.

     (a) Payments Free of Taxes. Any and all payments by or on account of any obligation
of any Borrower hereunder or under any other Loan Document shall be made free and clear of and
without reduction or withholding for any Indemnified Taxes; provided that if any Borrower
shall be required by Applicable Law to deduct any Indemnified Taxes from such payments, then (i)
the sum payable shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section) the Administrative
Agent, the applicable Lender or the Issuing Lender, as the case may be, receives an amount equal to
the sum it would have received had no such deductions been made, (ii) such Borrower shall make such
deductions and (iii) such Borrower shall timely pay the full amount deducted to the relevant
Governmental Authority in accordance with Applicable Law.

     (b) Payment of Other Taxes by the Borrower. Without limiting the provisions of
Section 5.11(a) above, the Borrowers shall timely pay any Other Taxes to the relevant
Governmental Authority in accordance with Applicable Law.

     (c) Indemnification by the Borrowers. Each of the Borrowers shall jointly and
severally indemnify the Administrative Agent, each Lender and the Issuing Lender, within ten (10)
days after written demand therefor, for the full amount of any Indemnified Taxes (including
Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section)
paid by the Administrative Agent, such Lender or the Issuing Lender, as the case may be, and any
penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or
not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority; provided that the Borrower shall not be obligated to indemnify the
Administrative Agent, any Lender or the Issuing Lender for any amount in respect of any such
penalties, interest or reasonable expenses if written demand therefor was not made by the
Administrative Agent, such Lender or the Issuing Lender within six (6) months from the date on
which such party makes payment for such penalties, interest or expenses; provided
further that the foregoing limitation shall not apply to any such penalties, interest or
reasonable expenses arising out of the retroactive application of any such Indemnified Tax. A
certificate as to the amount of such payment or liability delivered to the Borrower Agent by a
Lender or the Issuing Lender (with a copy to the Administrative Agent), or by the Administrative
Agent on its own behalf or on behalf of a Lender or the Issuing Lender, shall be conclusive absent
manifest error.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 51

 

 

     (d) Evidence of Payments. As soon as practicable after any payment of Indemnified
Taxes by any Borrower to a Governmental Authority, such Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment, a copy of the return reporting such payment or other evidence of
such payment reasonably satisfactory to the Administrative Agent.

     (e) Status of Lenders. Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the jurisdiction in which a Borrower is resident for
tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments
hereunder or under any other Loan Document shall deliver to the Borrower Agent (with a copy to the
Administrative Agent), at the time or times prescribed by Applicable Law or reasonably requested by
such Borrower or the Administrative Agent, such properly completed and executed documentation
prescribed by Applicable Law as will permit such payments to be made without withholding or at a
reduced rate of withholding. In addition, any Lender, if requested by the Borrower Agent or the
Administrative Agent, shall deliver such other documentation prescribed by Applicable Law or
reasonably requested by the Borrower Agent or the Administrative Agent as will enable a Borrower or
the Administrative Agent to determine whether or not such Lender is subject to backup withholding
or information reporting requirements. Without limiting the generality of the foregoing, in the
event that a Borrower is a resident for tax purposes in the United States, any Foreign Lender shall
deliver to the Borrower Agent and the Administrative Agent (in such number of copies as shall be
requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the request of the Borrower Agent or
the Administrative Agent, but only if such Foreign Lender is legally entitled to do so), whichever
of the following is applicable:

     (i) duly completed copies of Internal Revenue Service Form W-8BEN claiming eligibility
for benefits of an income tax treaty to which the United States is a party,

     (ii) duly completed copies of Internal Revenue Service Form W-8ECI or W-8IMY
(including, as applicable, all duly completed copies of all W-8ECIs or W-8BENs required to
be attached to such Internal Revenue Service Form W-8IMY),

     (iii) in the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under section 881(c) of the Code, (x) a certificate to the effect that
such Foreign Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the
Code, (B) a “10 percent shareholder” of a Borrower within the meaning of section
881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in section
881(c)(3)(C) of the Code and (y) duly completed copies of Internal Revenue Service Form
W-8BEN, or

     (iv) any other form prescribed by Applicable Law as a basis for claiming exemption
from or a reduction in United States Federal withholding tax duly completed together with
such supplementary documentation as may be prescribed by Applicable Law to permit such
Borrower to determine the withholding or deduction required to be made.

     (f) Treatment of Certain Refunds. If the Administrative Agent, a Lender or the
Issuing Lender determines that it has received a refund of any Taxes or Other Taxes as to which it
has been indemnified by a Borrower or with respect to which such Borrower has paid additional
amounts pursuant to this Section, it shall pay to such Borrower an amount equal to such refund (but
only to the extent of indemnity payments made, or additional amounts paid, by such Borrower under
this Section with respect to the Taxes or Other Taxes giving rise to such refund), net of all

AMENDED AND RESTATED CREDIT AGREEMENT — Page 52

 

 

out-of-pocket expenses of the Administrative Agent, such Lender or the Issuing Lender, as the
case may be, and without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund); provided that such Borrower, upon the request of
the Administrative Agent, such Lender or the Issuing Lender, agrees to repay the amount paid over
to such Borrower (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to the Administrative Agent, such Lender or the Issuing Lender in the event
the Administrative Agent, such Lender or the Issuing Lender is required to repay such refund to
such Governmental Authority. This Section shall not be construed to require the Administrative
Agent, any Lender or the Issuing Lender to make available its tax returns (or any other information
relating to its taxes which it deems confidential) to any Borrower or any other Person.

     (g) Survival. Without prejudice to the survival of any other agreement of the
Borrowers hereunder, the agreements and obligations of the Borrowers contained in this Section
shall survive the payment in full of the Obligations and the termination of the Commitments.

     SECTION 5.12 Mitigation Obligations; Replacement of Lenders.

     (a) Designation of a Different Lending Office. If any Lender requests compensation
under Section 5.10, or requires a Borrower to pay any additional amount to any Lender or
any Governmental Authority for the account of any Lender pursuant to Section 5.11, then
such Lender shall use reasonable efforts to designate a different lending office for funding or
booking its Loans hereunder or to assign its rights and obligations hereunder to another of its
offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment
(i) would eliminate or reduce amounts payable pursuant to Section 5.10 or Section
5.11, as the case may be, in the future and (ii) would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The
Borrowers hereby agree to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.

     (b) Replacement of Lenders. If any Lender requests compensation under Section
5.10, or if a Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 5.11, or if any
Lender is a Defaulting Lender hereunder or becomes a Non-consenting Lender, then the Borrower Agent
may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent,
require such Lender to assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in, and consents required by, Section 14.10), all of its interests,
rights and obligations under this Agreement and the related Loan Documents to an assignee that
shall assume such obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that:

     (i) the Borrowers shall have paid to the Administrative Agent the assignment fee
specified in Section 14.10;

     (ii) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and participations in Letters of Credit, accrued interest thereon,
accrued fees and all other amounts payable to it hereunder and under the other Loan
Documents (including any amounts under Section 5.9) from the assignee (to the
extent of such outstanding principal and accrued interest and fees) or the Borrowers (in
the case of all other amounts);

     (iii) in the case of any such assignment resulting from a claim for compensation under
Section 5.10 or payments required to be made pursuant to Section

AMENDED AND RESTATED CREDIT AGREEMENT — Page 53

 

 

     5.11, such assignment will result in a reduction in such compensation or
payments thereafter; and

          (iv) such assignment does not conflict with Applicable Law.

     A Lender shall not be required to make any such assignment or delegation if, prior thereto, as
a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower Agent to
require such assignment and delegation cease to apply.

     SECTION 5.13 Guaranties and Security. Payment of the Obligations shall be guaranteed
by the Guarantors pursuant to the Guaranty Agreement and shall be secured by assets of the Credit
Parties as provided in the Security Documents and in Section 9.18.

     SECTION 5.14 The Borrower Agent. Each Borrower hereby designates Southwest (in such
capacity, the “Borrower Agent”) as its representative and agent for all purposes under this
Agreement and the other Loan Documents, including, without limitation, for purposes of requests for
the making of Loans and the issuance of Letters of Credit, the designation of interest rate options
and Interest Periods, delivery or receipt of communications, preparation and delivery of Borrowing
Base Certificates and financial reports, receipt and payment of Obligations, requests for waivers,
amendments or other accommodations, actions under the Loan Documents (including in respect of
compliance with covenants), and all other dealings with the Administrative Agent, the Issuing
Lender, the Swingline Lender or any Lender. The Borrower Agent hereby accepts such appointment.
The Administrative Agent and the Lenders shall be entitled to rely upon, and shall be fully
protected in relying upon, any notice or communication (including any Notice of Borrowing)
delivered by the Borrower Agent on behalf of any Borrower. The Administrative Agent and the
Lenders may give any notice to or communication with a Borrower or any other Credit Party hereunder
to the Borrower Agent on behalf of such Borrower or other Credit Party. Each of the Administrative
Agent, the Issuing Lender, the Swingline Lender and the Lenders shall have the right, in its
discretion, to deal exclusively with the Borrower Agent for any or all purposes under this
Agreement and the other Loan Documents. Each Borrower and other Credit Party agrees that any
notice, election, communication, representation, agreement or undertaking made on its behalf by the
Borrower Agent shall be binding upon and enforceable against it.

ARTICLE VI

CONDITIONS OF CLOSING AND BORROWING

     SECTION 6.1 Conditions to Closing and Initial Extensions of Credit. The obligation of
the Lenders to close this Agreement and to make the initial Loan or issue or participate in the
initial Letter of Credit, if any, is subject to the satisfaction of each of the following
conditions precedent:

     (a) Executed Loan Documents. This Agreement, a Revolving Credit Note in favor of each
Lender requesting a Revolving Credit Note, a Term Loan Note in favor of each Lender requesting a
Term Loan Note, a Swingline Note in favor of the Swingline Lender (if requested by the Swingline
Lender) and the Security Documents, together with any other applicable Loan Documents, shall have
been duly authorized, executed and delivered to the Administrative Agent by the parties thereto,
shall be in full force and effect and no Default or Event of Default shall exist hereunder or
thereunder.

     (b) Closing Certificates; Etc. The Administrative Agent shall have received each of
the following in form and substance reasonably satisfactory to the Administrative Agent:

AMENDED AND RESTATED CREDIT AGREEMENT — Page 54

 

 

     (i) Officer’s Certificate. A certificate from a Responsible Officer of each
of the Credit Parties to the effect that all representations and warranties of such Person
contained in this Agreement and the other Loan Documents are true, correct and complete;
that none of the Credit Parties is in violation of any of the covenants contained in this
Agreement and the other Loan Documents; that, after giving effect to the transactions
contemplated by this Agreement, no Default or Event of Default has occurred and is
continuing; and that each of the Credit Parties, as applicable, has satisfied each of the
conditions set forth in Section 6.1 and Section 6.2.

     (ii) Certificate of Secretary of each Credit Party. A certificate of a
Responsible Officer of each Credit Party and Alon USA Energy certifying as to the
incumbency and genuineness of the signature of each officer of such Credit Party executing
Loan Documents to which it is a party and certifying that attached thereto is a true,
correct and complete copy of (A) the articles or certificate of incorporation or formation,
partnership agreement or other applicable governing document of such Credit Party and all
amendments thereto, certified as of a recent date by the appropriate Governmental Authority
in its jurisdiction of incorporation or formation, (B) the bylaws or other governing
document of such Credit Party as in effect on the Closing Date, (C) resolutions duly
adopted by the board of directors (or other governing body) of such Credit Party
authorizing the transactions contemplated hereunder and the execution, delivery and
performance of this Agreement and the other Loan Documents to which it is a party, and (D)
each certificate required to be delivered pursuant to Section 6.1(b)(iii).

     (iii) Certificates of Existence and Good Standing. Certificates as of a
recent date of the legal existence and good standing of each Credit Party and Alon USA
Energy under the laws of its jurisdiction of organization and, to the extent requested by
the Administrative Agent, each other jurisdiction where such Credit Party or Alon USA
Energy is qualified to do business and, to the extent available, a certificate of the
relevant taxing authorities of such jurisdictions certifying that such Credit Party or Alon
USA Energy has filed required tax returns and owes no delinquent taxes.

     (iv) Opinions of Counsel. Favorable opinions of counsel to the Credit Parties
and Alon USA Energy addressed to the Administrative Agent and the Lenders with respect to
the Credit Parties and Alon USA Energy, the Loan Documents and such other matters as the
Lenders shall request.

     (v) Tax Forms. Copies of the United States Internal Revenue Service forms
required by Section 5.11(e).

     (c) Personal Property Collateral.

     (i) Filings and Recordings. The Administrative Agent shall have received
(pursuant to the Existing Credit Agreement or otherwise) all filings and recordations that
are necessary to perfect the security interests of the Administrative Agent, on behalf of
the Secured Parties, in the personal property Collateral and all proceeds thereof and the
Administrative Agent shall have received evidence reasonably satisfactory to the
Administrative Agent that upon such filings and recordations such security interests
constitute valid and perfected first priority Liens thereon.

     (ii) Pledged Collateral. The Administrative Agent shall have received
(pursuant to the Existing Credit Agreement or otherwise) (A) original stock certificates or
other certificates evidencing the Capital Stock pledged pursuant to the Security

AMENDED AND RESTATED CREDIT AGREEMENT — Page 55

 

 

Documents, together with an undated stock power for each such certificate duly
executed in blank by the registered owner thereof and (B) each original promissory note
pledged pursuant to the Security Documents, together with an undated endorsement for each
such promissory note duly executed in blank by the holder thereof.

          (iii) Lien Search. The Administrative Agent shall have received the results
of a Lien search (including a search as to judgments, pending litigation, tax and
intellectual property matters), in form and substance reasonably satisfactory thereto, made
against the Credit Parties under the Uniform Commercial Code (or applicable judicial
docket) as in effect in each jurisdiction in which filings or recordations under the
Uniform Commercial Code should be made to evidence or perfect security interests in all
assets of such Credit Party, indicating among other things that the assets of each such
Credit Party are free and clear of any Lien (except for Permitted Liens).

          (iv) Hazard and Liability Insurance. The Administrative Agent shall have
received certificates of property hazard and liability insurance (naming the Administrative
Agent as loss payee (and mortgagee, as applicable) on all certificates for property hazard
insurance and as additional insured on all certificates for liability insurance), and, if
requested in writing by the Administrative Agent, copies (certified by a Responsible
Officer of the Borrowers) of insurance policies in the form required under the Security
Documents and otherwise in form and substance reasonably satisfactory to the Administrative
Agent.

(d) [Intentionally omitted.]

(e) Consents; Defaults.

          (i) Governmental and Third Party Approvals. The Credit Parties shall have
received all material governmental, shareholder and third party consents and approvals
necessary (or any other material consents as determined in the reasonable discretion of the
Administrative Agent) in connection with the transactions contemplated by this Agreement
and the other Loan Documents and the other transactions contemplated hereby and all
applicable waiting periods shall have expired without any action being taken by any Person
that could reasonably be expected to restrain, prevent or impose any material adverse
conditions on any of the Credit Parties or such other transactions or that could seek or
threaten any of the foregoing, and no law or regulation shall be applicable which in the
reasonable judgment of the Administrative Agent could reasonably be expected to have such
effect.

          (ii) No Injunction, Etc. No action, proceeding, investigation, regulation or
legislation shall have been instituted, threatened or proposed before any Governmental
Authority to enjoin, restrain, or prohibit, or to obtain substantial damages in respect of,
or which is related to or arises out of this Agreement or the other Loan Documents or the
consummation of the transactions contemplated hereby or thereby, or which, in the
Administrative Agent’s reasonable discretion, would make it inadvisable to consummate the
transactions contemplated by this Agreement or the other Loan Documents or the consummation
of the transactions contemplated hereby or thereby.

(f) Financial Matters.

          (i) Financial Statements. The Administrative Agent shall have received (A)
the audited Consolidated balance sheet of the Parent and its Subsidiaries as of

AMENDED AND RESTATED CREDIT AGREEMENT — Page 56

 

 

December 31, 2009, and the related audited statements of income and retained earnings and cash
flows for the Fiscal Year then ended and (B) unaudited Consolidated balance sheet of the
Parent and its Subsidiaries as of September 30, 2010, and related unaudited interim
statements of income and retained earnings.

          (ii) [Intentionally omitted.]

          (iii) [Intentionally omitted.]

          (iv) [Intentionally omitted.]

          (v) [Intentionally omitted.]

     (vi) Payment at Closing. The Borrowers shall have paid (A) to the
Administrative Agent, the Arranger and the Lenders the fees set forth or referenced in
Section 5.3 and any other accrued and unpaid fees or commissions due hereunder, (B)
all fees, charges and disbursements of counsel to the Administrative Agent (directly to
such counsel if requested by the Administrative Agent) to the extent accrued and unpaid
prior to or on the Closing Date, plus (unless not required by the Administrative Agent)
such additional amounts of such fees, charges and disbursements as shall constitute its
reasonable estimate of such fees, charges and disbursements incurred or to be incurred by
it through the closing proceedings (provided that such estimate shall not
thereafter preclude a final settling of accounts between the Borrowers and the
Administrative Agent) and (C) to any other Person such amount as may be due thereto in
connection with the transactions contemplated hereby, including all taxes, fees and other
charges in connection with the execution, delivery, recording, filing and registration of
any of the Loan Documents.

     (g) [Intentionally omitted.]

     (h) Miscellaneous.

     (i) Notice of Borrowing. The Administrative Agent shall have received a Notice of
Borrowing from the Borrower Agent in accordance with Section 2.3(a) and Section
4.2, and a Notice of Account Designation specifying the account or accounts to which
the proceeds of any Loans made on or after the Closing Date are to be disbursed.

     (ii) [Intentionally omitted.]

     (iii) Existing Indebtedness. The Existing Term Loan (including all interest
accrued thereon) and all fees and expenses payable by Southwest under the Existing Credit
Agreement shall be paid in full concurrently with the initial Extensions of Credit made on
the Closing Date.

     (iv) Borrowing Base Certificate. The Administrative Agent shall have received
a duly executed Borrowing Base Certificate dated as of the Closing Date which evidences
that, after giving effect to the initial Extensions of Credit on the Closing Date, the
Revolving Credit Outstandings will not exceed the lesser of the Revolving Credit Commitment
or the Borrowing Base.

     (v) Patriot Act. Alon USA Energy and the Parent and each of its Subsidiaries
shall have provided to the Administrative Agent and the Lenders the documentation and

AMENDED AND RESTATED CREDIT AGREEMENT — Page 57

 

 

     other information requested by the Administrative Agent in order to comply with
requirements of the Act.

     (vi) Other Documents. All opinions, certificates and other instruments and
all proceedings in connection with the transactions contemplated by this Agreement shall be
satisfactory in form and substance to the Administrative Agent. The Administrative Agent
shall have received copies of all other documents, certificates and instruments reasonably
requested thereby, with respect to the transactions contemplated by this Agreement.

     SECTION 6.2 Conditions to All Extensions of Credit. The obligations of the Lenders to
make or participate in any Extensions of Credit (including the initial Extension of Credit) and/or
the obligation of the Issuing Lender to issue or extend any Letter of Credit are subject to the
satisfaction of the following conditions precedent on the relevant borrowing, issuance or extension
date:

     (a) Continuation of Representations and Warranties. The representations and
warranties contained in Article VII shall be true and correct in all material respects on
and as of such borrowing, issuance or extension date with the same effect as if made on and as of
such date, except for any representation and warranty expressly made only as of an earlier date,
which representation and warranty shall remain true and correct in all material respects as of such
earlier date; provided that any representation or warranty that is qualified as to
“materiality”, “Material Adverse Effect” or similar language shall be true and correct in all
respects on and as of such respective dates.

     (b) No Existing Default. No Default or Event of Default shall have occurred and be
continuing (i) on the borrowing, continuation or conversion date with respect to such Loan or after
giving effect to the Loans to be made, continued or converted on such date or (ii) on the issuance
or extension date with respect to such Letter of Credit or after giving effect to the issuance or
extension of such Letter of Credit on such date.

     (c) Notices. The Administrative Agent shall have received a Notice of Borrowing or
Notice of Conversion/Continuation, as applicable, from the Borrower Agent in accordance with
Section 2.3(a), Section 4.2 or Section 5.2, as applicable.

     (d) No Material Adverse Effect. No event shall have occurred or circumstance shall
exist that (either alone or in combination with other events or circumstances) has had, or could
reasonably be expected to have, a Material Adverse Effect.

     (e) Additional Documents. The Administrative Agent shall have received each
additional document, instrument or other item reasonably requested by it.

ARTICLE VII

REPRESENTATIONS AND WARRANTIES OF THE CREDIT PARTIES

     To induce the Administrative Agent and the Lenders to enter into this Agreement and to induce
the Lenders to make Extensions of Credit, each of the Credit Parties hereby jointly and severally
represents and warrants to the Administrative Agent and the Lenders, both before and after giving
effect to the transactions contemplated hereunder, which representations and warranties shall be
deemed made on the Closing Date and on and as of each borrowing, issuance or extension date as set
forth in Section 6.2(a), that:

AMENDED AND RESTATED CREDIT AGREEMENT — Page 58

 

 

     SECTION 7.1 Organization; Powers. Each of the Credit Parties and their respective
Subsidiaries is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, has all requisite power and authority to own its Property and to
carry on its business as now conducted and, except where the failure to do so, individually or in
the aggregate, could not reasonably be expected to result in a Material Adverse Effect, is
qualified to do business in, and is in good standing in, every jurisdiction where because of the
nature of its activities or properties such qualification is required. The jurisdictions in which
each of the Credit Parties and their respective Subsidiaries are organized and qualified to do
business as of the Closing Date are described on Schedule 7.1.

     SECTION 7.2 Authorization; Enforceability. The Transactions are within the powers of
each of the Credit Parties and their respective Subsidiaries, and have been duly authorized by all
necessary action. This Agreement and the other Loan Documents to which any Credit Party is a party
have been duly executed and delivered by such Person and constitutes a legal, valid and binding
obligation of such Person, enforceable in accordance with their respective terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’
rights generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law.

     SECTION 7.3 Governmental Approvals; No Conflicts. The execution, delivery and
performance by each of the Credit Parties and their respective Subsidiaries of the Loan Documents
to which it is a party, in accordance with their respective terms, the Extensions of Credit
hereunder and the Transactions (a) do not require any consent or approval of, registration or
filing with, or any other action by, any Governmental Authority, except such as have been obtained
or made and are in full force and effect and except filings necessary to perfect Liens created
under the Loan Documents, (b) will not violate any Applicable Law or regulation or the charter,
by-laws or other organizational documents of any Credit Party or any of their respective
Subsidiaries or any order of any Governmental Authority, (c) will not violate or result in a
default under any indenture, agreement or other instrument (including any Material Contract)
binding upon any of the Credit Parties or their respective Subsidiaries, or their respective
assets, or give rise to a right thereunder to require any payment to be made by any of the Credit
Parties or their respective Subsidiaries, except where such violation or default could not
reasonably be expected to result in a Material Adverse Effect, and (d) will not result in the
creation or imposition of any Lien on any asset of any of the Credit Parties or their respective
Subsidiaries, other than Liens created or imposed by the Loan Documents.

     SECTION 7.4 Financial Condition; No Material Adverse Change.

     (a) The Borrowers have heretofore furnished (or are, on or before the Closing Date,
furnishing) to the Administrative Agent the financial statements referred to in clause (i) of
Section 6.1(f). Such financial statements present fairly, in all material respects, the
financial position and results of operations and cash flows of the Parent and its consolidated
Subsidiaries (including the Borrowers and their Subsidiaries) as of such dates and for such periods
in accordance with GAAP, subject (in the case of the unaudited financial statements) to the absence
of footnotes.

     (b) Since December 31, 2009, there has been no material adverse change in the business,
assets, operations or condition, financial or otherwise, of any Borrower or of the Credit Parties
taken as a whole.

     (c) Except as disclosed in the financial statements referred to above or the notes thereto and
except for matters disclosed on Schedule 7.12 hereto, after giving effect to the
Transactions, neither any of the Credit Parties nor any their respective Subsidiaries has, as of
the

AMENDED AND RESTATED CREDIT AGREEMENT — Page 59

 

 

Closing Date, any material contingent liabilities, unusual long term commitments or unrealized
losses.

     SECTION 7.5 Properties.

     (a) As of the Closing Date, the real property listed on Schedule 7.5 constitutes all
of the real property that is owned or leased by each of the Credit Parties and their respective
Subsidiaries. Each such Person has good title to, or valid leasehold interests in, all of its real
and personal property material to its business, except for minor defects in title that do not
interfere with its ability to conduct its business as currently conducted or to utilize such
properties for their intended purposes, and none of the properties, assets or leasehold interests
of any of the Credit Parties or their respective Subsidiaries is subject to any Lien, except as
permitted by Section 11.2.

     (b) Each of the Credit Parties and their respective Subsidiaries owns, or is licensed to use,
all franchises, licenses, trademarks, tradenames, copyrights, patents and other intellectual
property material to its business, and the use thereof by each of the Credit Parties and their
respective Subsidiaries does not infringe upon the rights of any other Person, except for any such
infringements that, individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect. No event has occurred which permits, or after notice or lapse of time
or both would permit, the revocation or termination of any such rights, and neither any Credit
Party nor any Subsidiary thereof is liable to any Person for infringement under Applicable Law with
respect to any such rights as a result of its business operations, in each case except as could not
reasonably be expected to have a Material Adverse Effect.

     SECTION 7.6 Litigation and Environmental Matters.

     (a) There are no actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of any Credit Party, threatened against or affecting
any of the Credit Parties or their respective Subsidiaries or properties (i) as to which there is a
reasonable possibility of an adverse determination and that, if adversely determined, could
reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect or
(ii) that involve this Agreement, any of the other Loan Documents or the Transactions. As of the
Closing Date, all actions, suits or proceedings pending or, to the knowledge of any Credit Party,
threatened and involving an amount in controversy equal to or greater than the Threshold Amount are
disclosed on Schedule 7.6.

     (b) Except for matters that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, neither any of the Credit Parties nor their
respective Subsidiaries (i) has failed to comply with any Environmental Law or to obtain, maintain
or comply with any permit, license or other approval required under any Environmental Law, (ii) has
become subject to any Environmental Claim, (iii) has received notice of any claim with respect to
any Environmental Claim or (iv) knows of any basis for any Environmental Claim.

     (c) Since the date of this Agreement, there has been no change in the status of the “Disclosed
Matters” (as such term is defined in the Existing Credit Agreement) that, individually or in the
aggregate, has resulted in a Material Adverse Effect.

     SECTION 7.7 Compliance with Laws and Agreements. Each of the Credit Parties and their
respective Subsidiaries is in compliance with all laws, regulations and orders of any Governmental
Authority applicable to it or its property and all indentures, agreements and other instruments
(including Material Contracts) binding upon it or its property, except where the failure

AMENDED AND RESTATED CREDIT AGREEMENT — Page 60

 

 

to do so, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect. No Default has occurred and is continuing.

     SECTION 7.8 Investment and Holding Company Status. Neither any of the Credit Parties
nor their respective Subsidiaries is (a) an “investment company” or is “controlled” by an
“investment company” as defined in, or subject to regulation under, the Investment Company Act of
1940 or (b) a “holding company” as defined in, or subject to regulation under, the Public Utility
Holding Company Act of 1935.

     SECTION 7.9 Taxes. Each of the Credit Parties and their respective Subsidiaries has
timely filed or caused to be filed all tax returns and reports required to have been filed and has
paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are
being contested in good faith by appropriate proceedings and for which such Credit Party or such
Subsidiary, as applicable, has set aside on its books adequate reserves or (b) to the extent that
the failure to do so could not reasonably be expected to result in a Material Adverse Effect. Such
returns accurately reflect in all material respects all liability for taxes of each of the Credit
Parties and their respective Subsidiaries for the periods covered thereby. There is no ongoing
audit or examination or, to the knowledge of any Credit Party, other investigation by any
Governmental Authority of the tax liability of any of the Credit Parties or their Subsidiaries, in
each case that could reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect. No Governmental Authority has asserted any Lien or other claim against any of the
Credit Parties or their respective Subsidiaries with respect to unpaid taxes which has not been
discharged or resolved (other than (i) any amount the validity of which is currently being
contested in good faith by appropriate proceedings and with respect to which reserves in conformity
with GAAP have been provided for on the books of the relevant Credit Party and (ii) Permitted
Liens).

     SECTION 7.10 ERISA. As of the Closing Date, neither any Credit Party nor any of its
Subsidiaries maintains or contributes to, or has any obligation under, any Employee Benefit Plan
and no ERISA Affiliate maintains or contributes to, or has any obligation under, any Pension Plan
or Multiemployer Plan, in each other than those identified on Schedule 7.10. No
Termination Event has occurred or is expected to occur that, when taken together with all other
such Termination Event for which liability is expected to occur, could reasonably be expected to
result in a Material Adverse Effect.

     SECTION 7.11 Disclosure. The Borrowers have disclosed to the Administrative Agent and
the Lenders all agreements, instruments and corporate, limited liability company or other
restrictions to which any of the Credit Parties or their respective Subsidiaries is subject, and
all other matters known to it, that, individually or in the aggregate, could reasonably be expected
to result in a Material Adverse Effect. None of the reports, financial statements, certificates or
other information furnished by or on behalf of the Borrowers to the Administrative Agent or any
Lender in connection with the negotiation of this Agreement or delivered hereunder (as modified or
supplemented by other information so furnished) contains any material misstatement of fact or omits
to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that, with respect to projected
financial information, the Borrowers represent only that such information was prepared in good
faith based upon assumptions believed to be reasonable at the time.

     SECTION 7.12 Indebtedness. The Credit Parties and their respective Subsidiaries have
no Indebtedness, except as disclosed on Schedule 7.12 or otherwise permitted by Section
11.1.

     SECTION 7.13 Subsidiaries. Neither Borrower has any Subsidiaries other than those
listed on Schedule 7.13 hereto, and Schedule 7.13 sets forth the jurisdiction of
organization of

AMENDED AND RESTATED CREDIT AGREEMENT — Page 61

 

 

each Subsidiary and each Credit Party’s ownership of the outstanding Capital Stock of each
Subsidiary. All of the outstanding Capital Stock of each Subsidiary has been validly issued, is
fully paid and is nonassessable. As of the Closing Date, there are no outstanding stock purchase
warrants, subscriptions, options, securities, instruments or other rights of any type or nature
whatsoever, which are convertible into, exchangeable for or otherwise provide for or permit the
issuance of Capital Stock of any Credit Party or any Subsidiary thereof, except as described on
Schedule 7.13. The Borrowers shall, from time to time as necessary, deliver to the
Administrative Agent an updated Schedule 7.13 to this Agreement, together with a
certificate of an authorized officer of the Borrowers certifying that the information set forth in
such schedule is true, correct and complete as of such date. Any new Subsidiary (other than Foreign
Subsidiaries which are not required to become Subsidiary Guarantors) must immediately become a
Subsidiary Guarantor and a party to the Subsidiary Guaranty Agreement as required by Section
9.9.

     SECTION 7.14 Inventory. All inventory of each of the Credit Parties and their
respective Subsidiaries has been and will hereafter be produced in compliance with all Applicable
Laws, rules, regulations and governmental standards, including, without limitation, the minimum
wage and overtime provisions of the Fair Labor Standards Act, as amended (29 U.S.C. §§ 201-219),
and the regulations promulgated thereunder, except any noncompliance that does not have a Material
Adverse Effect.

     SECTION 7.15 Patents, Trademarks and Copyrights. Schedule 7.15 sets forth a
true, accurate and complete listing, as of the date hereof, of all registered patents, trademarks
and copyrights, and applications therefor, of any of the Credit Parties or their respective
Subsidiaries. Except as created or permitted under the Loan Documents, no Lien exists with respect
to the interests of any of the Credit Parties or their respective Subsidiaries in any such patents,
trademarks, copyrights or applications, and neither any of the Credit Parties nor their respective
Subsidiaries has transferred or subordinated any interest it may have in such patents, trademarks,
copyrights and applications, except for licenses permitted by Section 11.9(b). The
Borrowers shall, from time to time as necessary, deliver to the Administrative Agent an updated
Schedule 7.15 to this Agreement, together with a certificate of an authorized officer of
the Borrowers certifying that the information set forth on such schedule is true, correct and
complete as of such date. Upon the request of the Administrative Agent at any time, the Borrowers
shall execute and deliver and cause to be executed and delivered assignments of all registered
patents, trademarks, copyrights and applications therefor included in the Collateral, in favor of
the Administrative Agent for the benefit of the Secured Parties, which assignments shall be in form
and substance satisfactory to the Administrative Agent and in proper form (a) for recording in the
U.S. Patent and Trademark Office to properly reflect the Administrative Agent’s security interest
in all U.S. patents, trademarks and applications therefor included in the Collateral and (b) for
recording with the U.S. Library of Congress to properly reflect the Administrative Agent’s security
interest in all U.S. copyrights and applications therefor included in the Collateral.

     SECTION 7.16 Margin Securities. Neither any of the Credit Parties nor their
respective Subsidiaries is engaged principally, or as one of its important activities, in the
business of extending credit for the purpose of purchasing or carrying any “margin stock” within
the meaning of Regulation T, U or X of the Board of Governors of the Federal Reserve System, as
amended. No part of the proceeds of any Loan will be used, directly or indirectly, to purchase or
carry any margin stock or to extend credit to others for the purpose of purchasing or carrying
margin stock.

     SECTION 7.17 Labor Matters. Except for any of the following that would not have a
Material Adverse Effect, (a) there are no actual or threatened strikes, labor disputes, slow downs,
walkouts, work stoppages, or other concerted interruptions of operations that involve any employees
employed at any time in connection with the business activities or operations at any of

AMENDED AND RESTATED CREDIT AGREEMENT — Page 62

 

 

the Credit Parties’ or their respective Subsidiaries’ locations, (b) hours worked by and
payment made to the employees of any of the Credit Parties or their respective Subsidiaries have
not been in violation of the Fair Labor Standards Act or any other Applicable Laws, rules and
regulations pertaining to labor matters, (c) all payments due from any of the Credit Parties or
their respective Subsidiaries for employee health and welfare insurance, including, without
limitation, workers’ compensation insurance, have been paid or accrued as a liability on its books,
and (d) the business activities and operations of each of the Credit Parties and their respective
Subsidiaries are in compliance with the Occupational Safety and Health Act of 1970, 29 U.S.C. § 651
et seq. and other applicable health and safety laws, rules and regulations.

     SECTION 7.18 Solvency. Each of the Credit Parties and their respective Subsidiaries
is, and after giving effect to the Transactions and the requested Loans and application of proceeds
thereof will be, Solvent.

     SECTION 7.19 Permits, Licenses, Etc. Each of the Credit Parties and their respective
Subsidiaries possesses all permits, licenses, patents, patent rights, trademarks, trademark rights,
trade names, trade name rights and copyrights which are required to conduct their respective
businesses, except to the extent that failure to do so does not result in or could not reasonably
be expected to result in a Material Adverse Effect.

     SECTION 7.20 Senior Indebtedness Status. The Obligations of each Credit Party and
each Subsidiary thereof under this Agreement and each of the other Loan Documents (a) rank and
shall continue to rank at least senior in priority of payment to all Subordinated Indebtedness and
at least equal in priority to all senior secured or unsecured Indebtedness of each such Person and
(b) is designated as “Senior Indebtedness” under all instruments and documents, now or in the
future, relating to all Subordinated Indebtedness.

     SECTION 7.21 OFAC. Neither Alon USA Energy, the Parent or any of its Subsidiaries nor
any Affiliate of any such Persons: (a) is a Sanctioned Person, (b) has more than ten percent (10%)
of its assets in Sanctioned Entities, or (c) derives more than ten percent (10%) of its operating
income from investments in, or transactions with Sanctioned Persons or Sanctioned Entities. None
of the proceeds of any Loan will be used, and none of such proceeds have been used, to fund any
operations in, finance any investments or activities in, or make any payments to, a Sanctioned
Person or a Sanctioned Entity.

ARTICLE VIII

FINANCIAL INFORMATION AND NOTICES

     Until all the Obligations (other than (a) contingent indemnification obligations not then due
and (b) the Specified Obligations) have been paid and satisfied in full in cash and the Commitments
terminated, unless consent has been obtained in the manner set forth in Section 14.2, the
Credit Parties will furnish or cause to be furnished to the Administrative Agent at the
Administrative Agent’s Office at the address set forth in Section 14.1 and, with respect to
Section 8.5 hereof only, to the Lenders at their respective addresses as set forth on the
Register, or such other office as may be designated by the Administrative Agent and Lenders from
time to time:

     SECTION 8.1 Financial Statements and Projections.

     (a) Quarterly Financial Statements. As soon as practicable and in any event within
forty-five (45) days after the end of the first three Fiscal Quarters of each Fiscal Year
(commencing with the Fiscal Quarter ending March 31, 2011, an unaudited Consolidated and
consolidating

AMENDED AND RESTATED CREDIT AGREEMENT — Page 63

 

 

balance sheet of the Parent and its Subsidiaries as of the close of such Fiscal Quarter and
unaudited Consolidated and consolidating statements of income, retained earnings and cash flows and
a report containing management’s discussion and analysis of such financial statements for the
Fiscal Quarter then ended and that portion of the Fiscal Year then ended, including the notes
thereto, all in reasonable detail setting forth in comparative form the corresponding figures as of
the end of and for the corresponding period in the preceding Fiscal Year and prepared by the Parent
in accordance with GAAP and, if applicable, containing disclosure of the effect on the financial
position or results of operations of any change in the application of accounting principles and
practices during the period, and certified by the chief financial officer of the Parent to present
fairly in all material respects the financial condition of the Parent and its Subsidiaries on a
Consolidated and consolidating basis as of their respective dates and the results of operations of
the Parent and its Subsidiaries for the respective periods then ended, subject to normal year end
adjustments and the absence of footnotes.

     (b) Annual Financial Statements. As soon as practicable and in any event within one
hundred twenty (120) days after the end of each Fiscal Year (commencing with the Fiscal Year ending
December 31, 2010), an audited Consolidated and consolidating balance sheet of (i) prior to the
occurrence of an IPO, Alon USA Energy and its Subsidiaries, and (ii) on and after the occurrence of
an IPO, the Parent and its Subsidiaries, in each case as of the close of such Fiscal Year and
audited Consolidated and consolidating statements of income, retained earnings and cash flows and a
report containing management’s discussion and analysis of such financial statements for the Fiscal
Year then ended, including the notes thereto, all in reasonable detail setting forth in comparative
form the corresponding figures as of the end of and for the preceding Fiscal Year and prepared in
accordance with GAAP and, if applicable, containing disclosure of the effect on the financial
position or results of operations of any change in the application of accounting principles and
practices during the year. Such annual financial statements shall be audited by an independent
certified public accounting firm of recognized national standing acceptable to the Administrative
Agent, shall be accompanied by a report thereon by such certified public accountants that is not
qualified with respect to scope limitations imposed by Alon USA Energy or any of its Subsidiaries
or the Parent or any of its Subsidiaries (as applicable) or with respect to accounting principles
followed by the Parent or any of its Subsidiaries not in accordance with GAAP.

     (c) Annual Business Plan and Financial Projections. Upon the request of the
Administrative Agent and within forty-five (45) days after such request (but no more often than
once during any Fiscal Year), a business plan of the Borrowers and their Subsidiaries for the
ensuing four (4) Fiscal Quarters, such plan to be prepared in accordance with GAAP and to include,
on a quarterly basis, the following: a quarterly operating and capital budget, a projected income
statement, statement of cash flows and balance sheet.

     SECTION 8.2 Officer’s Compliance Certificate. At each time financial statements are
delivered pursuant to Section 8.1(a) or Section 8.1(b) and at such other times as
the Administrative Agent shall reasonably request, an Officer’s Compliance Certificate.

     SECTION 8.3 [Intentionally omitted.]

     SECTION 8.4  Other Reports.

     (a) Company Reports. Promptly upon receipt thereof, copies of all reports, if any,
submitted to any Credit Party, any Subsidiary thereof or any of their respective boards of
directors or other applicable governing body by their respective independent public accountants in
connection with their auditing function, including, without limitation, any management report and
any management responses thereto;

AMENDED AND RESTATED CREDIT AGREEMENT — Page 64

 

 

     (b) Regulatory Reports. Promptly upon the request thereof, such other information and
documentation required by bank regulatory authorities under applicable “know your customer” and
Anti-Money Laundering rules and regulations (including, without limitation, the Act), as from time
to time reasonably requested by the Administrative Agent or any Lender;

     (c) General Information. Such other information regarding the operations, business
affairs and financial condition of any Credit Party or any Subsidiary thereof as the Administrative
Agent or any Lender may reasonably request; and

     (d) Borrowing Base Certificates; Determination of the Borrowing Base. On or before
the 30th day after the end of each calendar month, the Borrower Agent shall deliver to the
Administrative Agent (and the Administrative Agent shall promptly deliver to the Lenders), for and
on behalf of the Borrowers, a Borrowing Base Certificate prepared as of the last day of the month
then most recently ended which certifies as to the calculation of the Borrowing Base as of such
date; provided, however, that, if a Default has occurred and is continuing, upon
the request of the Administrative Agent, the Borrower Agent shall deliver a Borrowing Base
Certificate to the Administrative Agent on a more frequent basis but no more often than weekly
(which Borrowing Base Certificate shall certify as to the calculation of the Borrowing Base as of
the applicable date than most recently ended as specified by the Administrative Agent). Each
Borrowing Base Certificate shall separately set forth the applicable Eligible Accounts, Eligible
Inventory and other components of the Borrowing Base. Each determination of the Borrowing Base
shall be made by the Administrative Agent in good faith based upon the applicable Borrowing Base
Certificate and/or such other relevant information as the Administrative Agent shall deem necessary
or appropriate.

     SECTION 8.5 Notices of Material Events. Prompt written notice of the following:

	 	(a)	 	the occurrence or existence of any Default or Event of Default;
	 
	 	(b)	 	the filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting any Credit Party or any
Subsidiary or Affiliate thereof that, if adversely determined, could reasonably be
expected to result in a Material Adverse Effect;
	 
	 	(c)	 	(i) any unfavorable determination letter from the Internal Revenue Service
regarding the qualification of an Employee Benefit Plan under Section 401(a) of the
Code (along with a copy thereof), (ii) all notices received by any Credit Party or any
ERISA Affiliate of the PBGC’s intent to terminate any Pension Plan or to have a
trustee appointed to administer any Pension Plan, (iii) all notices received by any
Credit Party or any ERISA Affiliate from a Multiemployer Plan sponsor concerning the
imposition or amount of withdrawal liability pursuant to Section 4202 of ERISA and
(iv) any Credit Party obtaining knowledge or having reason to know that any Credit
Party or any ERISA Affiliate has filed or intends to file a notice of intent to
terminate any Pension Plan under a distress termination within the meaning of Section
4041(c) of ERISA; and
	 
	 	(d)	 	any other development that results in, or could reasonably be expected to
result in, a Material Adverse Effect.

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

AMENDED AND RESTATED CREDIT AGREEMENT — Page 65

 

 

     SECTION 8.6 Accuracy of Information. All written information, reports, statements and
other papers and data furnished by or on behalf of any Credit Party or any Subsidiary thereof to
the Administrative Agent or any Lender whether pursuant to this Article VIII or any other
provision of this Agreement, or any of the Security Documents, shall, at the time the same is so
furnished, comply with the representations and warranties set forth in Section 7.27.

ARTICLE IX

AFFIRMATIVE COVENANTS

     Until all of the Obligations (other than (a) contingent, indemnification obligations not then
due and (b) the Specified Obligations) have been paid and satisfied in full in cash and the
Commitments terminated, each Credit Party will, and will cause each of its Subsidiaries to:

     SECTION 9.1 Existence; Conduct of Business. Each of the Credit Parties will, and will
cause each of their respective Subsidiaries to, do or cause to be done all things necessary to
preserve, renew and keep in full force and effect its legal existence and the rights, licenses,
permits, privileges, agreements and franchises material to the conduct of its business; provided
that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution
permitted under Section 11.3.

     SECTION 9.2 Payment of Obligations. Each of the Credit Parties will, and will cause
each of their respective Subsidiaries to, pay its obligations, including tax liabilities, that, if
not paid, could result in a Material Adverse Effect or become a Lien on any of its property, before
the same shall become delinquent or in default, except where (a) the validity or amount thereof is
being contested in good faith by appropriate proceedings, (b) the applicable Credit Party or its
respective Subsidiary has set aside on its books adequate reserves with respect thereto in
accordance with GAAP and (c) the failure to make payment pending such contest could not reasonably
be expected to result in a Material Adverse Effect.

     SECTION 9.3 Maintenance of Properties. Each of the Credit Parties will, and will
cause each of their respective Subsidiaries to, keep, maintain and preserve all property (tangible
and intangible) material to the conduct of its business in good working order and condition,
ordinary wear and tear excepted.

     SECTION 9.4 Books and Records; Inspection Rights.

     (a) Each of the Credit Parties will, and will cause each of their respective Subsidiaries to,
keep proper books of record and account in which full, true and correct entries are made of all
dealings and transactions in relation to its business and activities. Each of the Credit Parties
will, and will cause each of their Subsidiaries to, permit any representatives designated by the
Administrative Agent to visit and inspect its properties, to examine and make extracts from its
books and records, and to discuss its affairs, finances and condition with its officers and
independent accountants, all at such times and as often as requested; provided, however, that such
visits will be conducted no more than three (3) times in any Fiscal Year unless a Default or Event
of Default occurs.

     (b) Each of the Credit Parties will, and will cause each of their respective Subsidiaries to,
permit any representatives designated by the Administrative Agent (including any consultants,
accountants, lawyers and appraisers retained by the Administrative Agent) to conduct evaluations
and appraisals of its and its respective Subsidiaries’ assets, all at such times and as often as
requested; provided, however, that such evaluations and appraisals shall not be requested more than

AMENDED AND RESTATED CREDIT AGREEMENT — Page 66

 

 

three (3) times per Fiscal Year unless a Default or Event of Default occurs. The Borrowers
shall pay the fees and expenses of any representatives retained by the Administrative Agent to
conduct any such evaluation or appraisal.

     SECTION 9.5 Insurance. Each of the Credit Parties will, and will cause each of their
respective Subsidiaries to, maintain insurance with financially sound and reputable insurance
companies in such amounts and covering such risks as is usually carried by corporations or other
entities engaged in similar businesses and owning similar properties in the same general areas in
which the Credit Parties and their respective Subsidiaries operate, provided that in any event each
of the Credit Parties will maintain, and will cause each of their respective Subsidiaries to
maintain, workers’ compensation insurance or voluntary benefits and excess employers liability
plans, property insurance, comprehensive general liability insurance, and products liability
insurance satisfactory to the Administrative Agent. Each property insurance policy covering
Collateral shall name the Administrative Agent as loss payee and each liability insurance policy
shall name the Administrative Agent as additional insured, in each case for the benefit of the
Secured Parties and shall provide that such policy will not be canceled or reduced without thirty
(30) days’ prior written notice to the Administrative Agent.

     SECTION 9.6 Compliance with Laws. Each of the Credit Parties will, and will cause
each of their respective Subsidiaries to, and with respect to ERISA will cause each of its ERISA
Affiliates to, comply with all laws, rules, regulations and orders of any Governmental Authority
applicable to it or its property, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect.

     SECTION 9.7 Use of Proceeds. The Borrowers shall use the proceeds of the Extensions
of Credit (a) to pay in full all indebtedness outstanding under the Existing Credit Agreement (as
required by Section 6.1(h)(iii)), (b) to finance the acquisition of Capital Assets of the
Borrowers and their Subsidiaries, and (c) for working capital and general corporate purposes of the
Borrowers and their Subsidiaries, including the payment of certain fees and expenses incurred in
connection with the Transactions and this Agreement. No part of the proceeds of any Loan will be
used, whether directly or indirectly, for any purpose that entails a violation of any of the
Regulations of the Board of Governors of the Federal Reserve System, including Regulations T, U and
X.

     SECTION 9.8 Compliance with Agreements. Each of the Credit Parties will, and will
cause each of their respective Subsidiaries to, comply in all material respects with all
agreements, contracts and instruments (including Material Contracts) binding on it or affecting its
properties or business.

     SECTION 9.9 Additional Subsidiaries and Real Property.

     (a) Additional Domestic Subsidiaries. If any additional Subsidiary is formed or
acquired after the Closing Date, the Borrower Agent will notify the Administrative Agent and the
Lenders thereof and (a) the Borrowers will cause such Subsidiary (except any Foreign Subsidiary) to
become a Subsidiary Guarantor within three Business Days after such Subsidiary is formed or
acquired and promptly take such actions to create and perfect Liens on such Subsidiary’s assets to
secure the Obligations as the Administrative Agent or the Required Lenders shall request, (b) if
any Capital Stock in or Indebtedness of such Subsidiary is owned by or on behalf of any Borrower or
any Guarantor, the Borrowers will cause such Capital Stock and any promissory notes evidencing such
Indebtedness to be pledged (as security for the Obligations) to the Administrative Agent and the
Lenders within three Business Days after such Subsidiary is formed or acquired (except that, if
such Subsidiary is a Foreign Subsidiary, shares of common stock of such Subsidiary to be pledged
may be limited to 65% of the outstanding shares of Capital Stock of such

AMENDED AND RESTATED CREDIT AGREEMENT — Page 67

 

 

Subsidiary), and (c) the Borrowers and each Subsidiary Guarantor will execute and deliver a
Contribution and Indemnification Agreement in substantially the form attached hereto as Exhibit M.

     (b) Real Property Collateral. The Borrowers will notify the Administrative Agent,
within ten (10) days after the acquisition of any owned real property by any Borrower or any of its
Subsidiaries that is not subject to the existing Security Documents, and, within one hundred twenty
(120) days following a request by the Administrative Agent, deliver such Mortgages, title insurance
policies, environmental reports as are then in existence and other documents reasonably requested
by the Administrative Agent (consistent with the requirements of Section 9.12) in
connection with granting and perfecting a first priority Lien, other than Permitted Liens, on such
real property in favor of the Administrative Agent, for the ratable benefit of the Secured Parties,
all in form and substance reasonably acceptable to the Administrative Agent.

     (c) Notwithstanding the foregoing, to the extent any new Subsidiary is created solely for the
purpose of consummating a merger transaction pursuant to a Permitted Acquisition, and such new
Subsidiary at no time holds any assets or liabilities other than any merger consideration
contributed to it contemporaneously with the closing of such merger transaction, such new
Subsidiary shall not be required to take the actions set forth in Section 9.9(a) until the
consummation of such Permitted Acquisition (at which time, the surviving entity of the respective
merger transaction shall be required to so comply with Section 9.9(a) within ten (10)
Business Days of the consummation of such Permitted Acquisition).

     (d) Notwithstanding the foregoing, the provisions of this Section 9.9 shall not apply
to assets as to which the Administrative Agent and the Borrower Agent shall reasonably determine
that the costs and burdens of obtaining a security interest therein or a lien thereon or perfection
thereof outweigh the value of the security afforded thereby.

     SECTION 9.10 Environmental Matters. Each of the Credit Parties will, and will cause
each of their respective Subsidiaries to (a) comply in all material respects with all limitations,
restrictions, conditions, standards, prohibitions, requirements, obligations, schedules, and
timetables contained in any Environmental Laws and (b) defend, indemnify and hold harmless the
Administrative Agent and the Lenders, and their respective parents, Subsidiaries, Affiliates,
employees, agents, officers and directors, from and against any claims, demands, penalties, fines,
liabilities, settlements, damages, costs and expenses of whatever kind or nature known or unknown,
contingent or otherwise, arising out of, or in any way relating to the presence of Hazardous
Materials, or the violation of, noncompliance with or liability under any Environmental Laws
applicable to the operations of any Credit Party or any Subsidiary, or any orders, requirements or
demands of Governmental Authorities related thereto, including, without limitation, reasonable
attorney’s and consultant’s fees, investigation and laboratory fees, response costs, court costs
and litigation expenses, except to the extent that any of the foregoing directly result from the
gross negligence or willful misconduct of the party seeking indemnification therefor, as determined
by a court of competent jurisdiction by final nonappealable judgment.

     SECTION 9.11 Further Assurances. Each of the Credit Parties will, and will cause each
of their respective Subsidiaries to, execute and deliver such further agreements, documents and
instruments and take such further action as may be requested by the Administrative Agent to carry
out the provisions and purposes of this Agreement and the other Loan Documents and to create,
preserve and perfect the Liens of the Administrative Agent, for the benefit of the Administrative
Agent and the Secured Parties, in the Collateral.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 68

 

 

     SECTION 9.12 Collateral.

     (a) Personal Property Collateral. Subject to the proviso below, each of the Credit
Parties will, and will cause each of their respective Subsidiaries to, pursuant to the Security
Documents, grant to the Administrative Agent, for the benefit of the Lenders and the other Secured
Parties and to secure the payment and performance of the Obligations, a perfected, first priority
security interest in all of its personal property (except to the extent that the Administrative
Agent and the Borrower Agent shall reasonably determine that the costs and burdens of obtaining a
security interest therein outweigh the value of the security afforded thereby); provided,
however, that the Credit Parties shall be obligated to pledge the Capital Stock of a
Foreign Subsidiary only to the extent required pursuant to Section 9.9(b).

     (b) Real Property Collateral. On or before one hundred twenty (120) days after the
Closing Date (or, if so requested by the Administrative Agent or any Lender, within sixty (60) days
after the Closing Date), each of the Borrowers and their Subsidiaries will grant to the
Administrative Agent, as security for the payment of the Obligations, a Lien on each parcel of real
property owned in fee by such Borrower or such Subsidiary pursuant to a Mortgage. In addition, and
in connection with the execution and delivery of such Mortgages, each such Borrower or such
Subsidiary will (on or before one-hundred twenty (120) days after the Closing Date) deliver (or
cause to be delivered) the following to the Administrative Agent:

     (i) Title Insurance. Unless the requirement therefor is waived by the
Administrative Agent, a marked-up commitment for a policy of title insurance, insuring the
Administrative Agent’s first priority Liens and showing no Liens prior to the
Administrative Agent’s Liens other than for ad valorem taxes not yet due and payable, with
title insurance companies acceptable to the Administrative Agent on each property subject
to a Mortgage with the final title insurance policy being delivered within thirty (30) days
thereafter, and any customary affidavits and indemnities as may be required or necessary to
obtain title insurance satisfactory to the Administrative Agent;

     (ii) Title Exceptions. Copies of all recorded documents creating exceptions
to each title policy referred to in clause (a) above;

     (iii) Matters Relating to Flood Hazard Properties. A certification form of a
certification from the National Research Center, or any successor agency thereto, regarding
each parcel of real property subject to a Mortgage;

     (iv) [Intentionally omitted];

     (v) Environmental Assessments. If and to the extent then presently existing
or available, a Phase I environmental assessment or other environmental report regarding
each property subject to a Mortgage; and

     (vi) Other Real Property Information. Such other certificates, documents and
information as are reasonably requested by the Administrative Agent, including, without
limitation, legal opinions with respect to the Mortgages and, if and to the extent
requested by the Administrative Agent and reasonably available, permanent certificates of
occupancy and evidence of zoning compliance, each in form and substance reasonably
satisfactory to the Administrative Agent.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 69

 

 

Notwithstanding any of the foregoing deadlines referred to in this Section 9.12(b), any
such deadline may be extended by the Administrative Agent in its discretion if and to the extent
such an extension is deemed necessary or appropriate by the Administrative Agent.

     SECTION 9.13 Non-Consolidation. Each of Credit Parties will, and will cause each of
their respective Subsidiaries to, maintain (a) entity records and books of account separate from
those of any other entity which is an Affiliate of such entity, (b) not commingle its funds or
assets with those of any other entity which is an Affiliate of such entity (except pursuant to cash
management systems reasonably acceptable to the Administrative Agent) and (c) provide that its
board of directors (or equivalent governing body) will hold all appropriate meetings to authorize
and approve such entity’s actions, which meetings will be separate from those of other entities
(except to the extent that joint meetings are held generally consistent with the practices of the
Borrowers and their Subsidiaries as in effect on the Closing Date).

ARTICLE X

FINANCIAL COVENANTS

     Until all of the Obligations (other than (a) contingent, indemnification obligations not then
due and (b) the Specified Obligations) have been paid and satisfied in full in cash and the
Commitments terminated, the Borrowers and their Subsidiaries on a Consolidated basis will not:

     SECTION 10.1 Consolidated Total Leverage Ratio. As of any Fiscal Quarter ending
during the periods specified below, permit the Consolidated Total Leverage Ratio to be greater than
the corresponding ratio set forth below:

	 	 	 
	Period	 	Maximum Ratio
	Closing Date through March 30, 2013

	 	5.00 to 1.00
	March 31, 2013 and thereafter

	 	4.75 to 1.00

     SECTION 10.2 Fixed Charge Coverage Ratio. As of any Fiscal Quarter, permit the Fixed
Charge Coverage Ratio to be less than 1.25 to 1.00.

ARTICLE XI

NEGATIVE COVENANTS

     Until all of the Obligations (other than (a) contingent, indemnification obligations not then
due and (b) the Specified Obligations) have been paid and satisfied in full in cash and the
Commitments terminated, the Credit Parties will not, and will not permit any of their respective
Subsidiaries to.

     SECTION 11.1 Indebtedness. Each of the Credit Parties will not, and will not permit
any of their respective Subsidiaries to, create, incur, assume or permit to exist any Indebtedness,
including without limitation Subordinated Debt, except:

     (a) Indebtedness created hereunder;

     (b) Indebtedness existing on the date hereof and set forth in Schedule 7.12, and
extensions, renewals and replacements of any such Indebtedness that do not increase the outstanding
principal amount thereof or result in an earlier maturity date;

AMENDED AND RESTATED CREDIT AGREEMENT — Page 70

 

 

     (c) Indebtedness of any Borrower to any Subsidiary Guarantor and of any Subsidiary Guarantor
to any Borrower, and Subordinated Indebtedness of any Borrower or any Subsidiary Guarantor to the
Parent or Alon USA Energy;

     (d) Guaranty Obligations of any Borrower of Indebtedness (other than the Guaranty Obligations
under the Guaranty Agreements in favor of the Administrative Agent) of any Guarantor which when
combined do not exceed $250,000 in the aggregate;

     (e) Guaranty Obligations in favor of the Administrative Agent;

     (f) Indebtedness incurred in the ordinary course of business in connection with Capital Leases
(including those set forth in Schedule 7.12), provided that no Default exists or results
therefrom;

     (g) purchase money Indebtedness of the Credit Parties and their respective Subsidiaries
(including Indebtedness set forth in Schedule 7.12) representing the purchase price of
Capital Expenditures, that is secured (if at all) only by the asset purchased, provided that no
Default exists or results therefrom;

     (h) Indebtedness of the Credit Parties and their respective Subsidiaries incurred to finance
Permitted Acquisitions which is not secured by a Lien on the Collateral, and extensions, renewals
and replacements of any such Indebtedness that do not increase the outstanding principal amount
thereof or result in an earlier maturity date;

     (i) Hedging Agreements permitted by Section 11.5;

     (j) Indebtedness from judgments that otherwise do not constitute a Default or an Event of
Default; and

     (k) Indebtedness other than those listed in clauses (a) through (j) above in the aggregate
amount not to exceed $2,000,000 at any time outstanding.

     Without in any way limiting the foregoing, no Subordinated Indebtedness, other than the
Subordinated Indebtedness referred to in clause (b) or clause (c) of this
Section 11.1 above, shall be permitted unless and until the Required Lenders shall have
consented to such Subordinated Debt and approved all documents and terms related thereto, which
consent and approval may be granted or withheld in the sole and absolute discretion of the Required
Lenders.

     SECTION 11.2 Liens. Each of the Credit Parties will not, and will not permit any of
their respective Subsidiaries to, create, incur, assume or permit to exist any Lien on any property
or asset (including without limitation Capital Stock in any of their Subsidiaries) now owned or
hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable)
or rights in respect of any thereof, except:

     (a) Liens imposed by law for taxes that are not yet due or are being contested in compliance
with Section 9.2, provided that such Lien shall not secure any Indebtedness for borrowed
money;

     (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, landlords’ and other
like Liens imposed by law, arising in the ordinary course of business and securing obligations that
are not overdue by more than 30 days or are being contested in compliance with Section 9.2,
provided that such Lien shall not secure any Indebtedness for borrowed money;

AMENDED AND RESTATED CREDIT AGREEMENT — Page 71

 

 

     (c) pledges and deposits made in the ordinary course of business in compliance with workers’
compensation, unemployment insurance and other social security laws or regulations, provided that
such Lien shall not secure any Indebtedness for borrowed money;

     (d) deposits to secure the performance of bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in
each case in the ordinary course of business, provided that such Lien shall not secure any
Indebtedness for borrowed money;

     (e) judgment Liens in respect of judgments that do not constitute an Event of Default under
clause (m) of Section 12.1, provided that such Lien shall not secure any Indebtedness for
borrowed money;

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

     (g) any Lien that is set forth on Schedule 11.2 and exists as of the date hereof on
any property or asset of any Credit Party or its respective Subsidiaries; provided that (i) such
Lien shall not attach to any other property or asset of any Credit Party or any of its respective
Subsidiaries and (ii) such Lien shall secure only the Indebtedness or other obligations which it
secures on the date hereof and extensions, renewals and replacements thereof that do not increase
the outstanding principal amount thereof or result in an earlier maturity date;

     (h) Liens securing Indebtedness permitted by clauses (f) and (g) of Section 11.1;

     (i) Liens securing Indebtedness permitted by clause (h) of Section 11.1 to the extent
such Liens do not cover any of the Collateral; and

     (j) Liens created under the Loan Documents.

     SECTION 11.3 Fundamental Changes.

     (a) Each of the Credit Parties will not, and will not permit any of their respective
Subsidiaries to, merge into or consolidate with any other Person, or permit any other Person to
merge into or consolidate with it, or liquidate or dissolve, except that, if at the time thereof
and immediately after giving effect thereto no Default shall have occurred and be continuing, (i)
any Subsidiary of a Borrower may merge into a Borrower in a transaction in which such Borrower is
the surviving entity, (ii) any Subsidiary that is not a Guarantor may merge into any wholly-owned
Subsidiary in a transaction in which the surviving entity is a wholly-owned Subsidiary, (iii) any
Subsidiary Guarantor may be dissolved, liquidated or merged into another Subsidiary, so long as
such dissolution, liquidation or merger results in all assets of such Subsidiary Guarantor being
owned by a Borrower or another Subsidiary Guarantor, and (iv) any Subsidiary that is not a
Guarantor may liquidate or dissolve if the Borrowers determine in good faith that such liquidation
or dissolution is in the best interests of the Borrowers and is not disadvantageous to the Lenders
and so long as such liquidation or dissolution results in all assets of such Subsidiary being owned
by a Borrower or a wholly-owned Subsidiary.

     (b) Each of the Credit Parties will not, and will not permit any of their respective
Subsidiaries to, engage in any business other than businesses of the type conducted by such Credit

AMENDED AND RESTATED CREDIT AGREEMENT — Page 72

 

 

Party or such Subsidiary on the date of execution of this Agreement and businesses reasonably
related thereto.

     (c) Each of the Credit Parties will not, and will not permit any of their respective
Subsidiaries to, change their Fiscal Year.

     SECTION 11.4 Investments, Loans, Advances, Guarantees and Acquisitions. Each of the
Credit Parties will not, and will not permit any of their respective Subsidiaries to, purchase,
hold or acquire (including pursuant to any merger with any Person that was not a wholly owned
Subsidiary prior to such merger) any Capital Stock, evidences of indebtedness or other securities
(including any option, warrant or other right to acquire any of the foregoing) of, make or permit
to exist any loans or advances to, guarantee any obligations of, or make or permit to exist any
investment or any other interest in, any other Person, or purchase or otherwise acquire (in one
transaction or a series of transactions) all or substantially all of the assets of any other Person
or any assets of any other Person constituting a business unit or division, except:

     (a) direct obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States (or by any agency thereof to the extent such
obligations are backed by the full faith and credit of the United States), in each case maturing
not more than one year from the date of acquisition thereof;

     (b) investments in certificates of deposit, banker’s acceptances and time deposits maturing
not more than 180 days from the date of acquisition thereof issued or guaranteed by or placed with,
and money market and other deposit accounts issued or offered by, any domestic office of any
commercial bank organized under the laws of the United States or any State thereof which has a tier
1 capital ratio of not less than 6%, and, with respect to such certificates of deposit, banker’s
acceptances and time deposits issued by any particular commercial bank, in an amount not exceeding
10% of such commercial bank’s unimpaired capital;

     (c) fully collateralized repurchase agreements with a term of not more than 30 days for
securities described in clause (a) above and entered into with a financial institution satisfying
the criteria described in clause (b) above;

     (d) acquisitions of convenience stores consistent with existing operations;

     (e) Investments other than those listed in clauses (a) through (d) above in the aggregate
amount of $1,000,000 per Fiscal Year;

     (f) Capital Stock existing on the date hereof in its Subsidiaries;

     (g) Capital Stock in Subsidiaries formed after the Closing Date provided that each such
Subsidiary becomes a Subsidiary Guarantor and otherwise complies with the requirements of
Section 9.9;

     (h) loans or advances made by a Borrower to any Subsidiary Guarantor and made by any
Subsidiary Guarantor to a Borrower or any other Subsidiary Guarantor;

     (i) accounts receivable for sales of inventory and other products and services provided by the
Credit Parties and their respective Subsidiaries to their respective customers in the ordinary
course of their businesses;

     (j) Permitted Acquisitions;

AMENDED AND RESTATED CREDIT AGREEMENT — Page 73

 

 

     (k) Capital Expenditures; and

     (l) Guaranty Obligations constituting Indebtedness permitted by Section 11.1.

     SECTION 11.5 Hedging Agreements. Each of the Credit Parties will not, and will not
permit any of their respective Subsidiaries to, enter into any Hedge Agreement; provided, however,
that the Credit Parties and their respective Subsidiaries shall be permitted to enter into Hedge
Agreements in the ordinary course of business with the Administrative Agent or a third party
acceptable to the Administrative Agent to (a) hedge interest rate risk on the Loans, or (b) hedge
up to $500,000 in the aggregate of any other type of risk.

     SECTION 11.6 Restricted Payments; Certain Payments of Indebtedness.

     (a) Each of the Credit Parties will not, and will not permit any of their respective
Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any Restricted
Payment or incur any obligation (contingent or otherwise) to do so, except (i) a Borrower may
declare and pay dividends with respect to its Capital Stock payable solely in additional Capital
Stock in such Borrower, (ii) a Borrower may declare and pay dividends as permitted by Applicable
Law to the Parent if, but only if, no Default exists or results therefrom, and (iii) Subsidiaries
of a Borrower may declare and pay dividends to such Borrower or any Subsidiary Guarantor.

     (b) Each of the Credit Parties will not, and will not permit any of their respective
Subsidiaries to, make or agree to pay or make, directly or indirectly, any payment or other
distribution (whether in cash securities or other property) of or in respect of principal of or
interest on any Indebtedness, or any payment or other distribution (whether in cash, securities or
other property), including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, acquisition, cancellation or termination of any Indebtedness, except:

          (i) payment of Indebtedness created under the Loan Documents;

          (ii) refinancings of Indebtedness to the extent permitted by Section 11.1;

          (iii) payment of secured Indebtedness that becomes due as a result of the voluntary
sale or transfer of the property or assets securing such Indebtedness, provided that such
sale or transfer is otherwise permitted by this Agreement;

          (iv) payment or prepayment of Capital Lease obligations, so long as no Default is
existing or would result therefrom; and

          (v) payment when due of obligations under Hedge Agreements.

     SECTION 11.7 Transactions with Affiliates. Each of the Credit Parties will not, and
will not permit any of their respective Subsidiaries to, sell, lease or otherwise transfer any
property or assets to, or purchase, lease or otherwise acquire any property or assets from, or
otherwise engage in any other transactions with, any of its Affiliates, except as permitted in this
Agreement and except (a) in the ordinary course of business at prices and on terms and conditions
not less favorable to such Credit Party or such Subsidiary than could be obtained on an
arm’s-length basis from unrelated third parties, (b) transactions between or among the Borrowers
and the Subsidiary Guarantors not involving any other Affiliate, and (c) any Restricted Payment
permitted by Section 11.6.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 74

 

 

     SECTION 11.8 Restrictive Agreements. Each of the Credit Parties will not, and will
not permit any of their respective Subsidiaries to, directly or indirectly, enter into, incur or
permit to exist any agreement or other arrangement that prohibits, restricts or imposes any
condition upon (a) the ability of any Credit Party or any of their respective Subsidiaries to
create, incur or permit to exist any Lien upon any of its property or assets, or (b) the ability of
any of their respective Subsidiaries to pay dividends or other distributions with respect to any
Capital Stock in such Subsidiary or to make or repay loans or advances to a Borrower or any of its
Subsidiaries or to guarantee Indebtedness of the Borrowers or any of their respective Subsidiaries;
provided that (i) the foregoing shall not apply to restrictions and conditions imposed by law or by
any Loan Document, (ii) the foregoing shall not apply to restrictions and conditions existing on
the date hereof identified on Schedule 11.8 (but shall apply to any extension or renewal
of, or any amendment or modification expanding the scope of, any such restriction or condition),
(iii) the foregoing shall not apply to customary restrictions and conditions contained in
agreements relating to the sale of a Subsidiary pending such sale, provided such restrictions and
conditions apply only to the Subsidiary that is to be sold and such sale is permitted hereunder,
(iv) clause (a) of the foregoing shall not apply to restrictions or conditions imposed by any
agreement relating to secured Indebtedness permitted by this Agreement if such restrictions or
conditions apply only to the property or assets securing such Indebtedness and (v) clause (a) of
the foregoing shall not apply to customary provisions in leases and other contracts restricting the
assignment thereof.

     SECTION 11.9 Disposition of Assets. Except as otherwise permitted in Section
11.3, each of the Credit Parties will not, and will not permit any of their respective
Subsidiaries to sell, lease, assign, transfer or otherwise dispose of any of their respective
assets (including without limitation Capital Stock in any of the Subsidiaries or any of the voting
rights of any such Capital Stock); provided, however, that the following dispositions shall be
permitted so long as the Borrowers and their respective Subsidiaries, as applicable, receive full,
fair and reasonable consideration at the time of such disposition at least equal to the fair market
value of such asset being disposed:

     (a) dispositions of inventory in the ordinary course of business of the Borrowers and their
respective Subsidiaries;

     (b) non-exclusive licenses of intellectual property and leases and licenses of other property
by the Borrowers and their respective Subsidiaries to their respective customers in connection with
providing products and services to such customers in the ordinary course of business of the
Borrowers and their respective Subsidiaries.

     (c) sales, transfers and other dispositions to the Borrowers or any of their respective
wholly-owned Subsidiaries that are Subsidiary Guarantors;

     (d) disposition of assets that are worn out, obsolete or no longer used or useful in the
conduct of the business of the Borrowers and their respective Subsidiaries in the Borrowers’
reasonable business judgment;

     (e) disposition of up to six convenience stores during any Fiscal Year, the proceeds of which
are applied to the Obligations;

     (f) disposition of up to ten convenience stores during any Fiscal Year, which are replaced by
convenience stores of similar value within six (6) months after the disposition of such stores;

AMENDED AND RESTATED CREDIT AGREEMENT — Page 75

 

 

     (g) disposition of any convenience stores during any Fiscal Year which are not owned by any
entity which is a party to the Security Agreement, which are not subject to a Lien created under
the Loan Documents or which are subject to a Lien permitted under Section 11.2(g) and
(h);

     (h) other asset dispositions which do not exceed $1,000,000 in the aggregate during the term
of this Agreement; and

     (i) disposition of any of the convenience stores listed on Schedule 11.9, the proceeds
of which must be applied by the Borrowers to the Obligations.

     SECTION 11.10 Sale and Leaseback. Each of the Credit Parties will not enter into, and
will not permit any of their respective Subsidiaries to enter into, any arrangement with any Person
pursuant to which it leases from such Person real or personal property that has been or is to be
sold or transferred, directly or indirectly, by it to such Person; provided that the Borrowers and
their respective Subsidiaries will be permitted to enter into such arrangements involving sales of
personal property not to exceed $500,000 in the aggregate during the term of this Agreement in
connection with Capital Lease obligations permitted by Section 11.1(f).

     SECTION 11.11 Accounting. Each of the Credit Parties will not, and will not permit
any of their respective Subsidiaries to, change its Fiscal Year or make any change (a) in
accounting treatment or reporting practices, except as required by GAAP and disclosed to the
Administrative Agent, or (b) in tax reporting treatment, except as required by law and disclosed to
the Administrative Agent.

     SECTION 11.12 Amendment of Material Documents. Each of the Credit Parties will not,
and will not permit any of their respective Subsidiaries to, amend, modify or waive any of its
rights or obligations under its certificate of incorporation, by-laws, other organizational
documents unless such amendment, modification or waiver could not adversely affect the
Administrative Agent or any Lender in any way, or amend, modify or waive any documents evidencing
or relating to any Indebtedness of any of the Credit Parties or any of their respective
Subsidiaries, unless such amendment, modification or waiver would not create a Material Adverse
Effect. At any time any Subordinated Debt exists, each of the Credit Parties will not, and will
not permit any of their respective Subsidiaries to, amend, modify, or waive any of its rights or
obligations under or any terms or provisions of any Subordinated Debt or any document evidencing,
governing or otherwise relating to any Subordinated Debt.

     SECTION 11.13 Preferred Equity Interests. Each of the Credit Parties will not, and
will not permit any of their respective Subsidiaries to, issue any preferred stock or other
preferred Capital Stock.

     SECTION 11.14 Synthetic Leases. Each of the Credit Parties will not, and will not
permit any of their respective Subsidiaries to, enter into, or be a party to, or make any payment
under, any Synthetic Lease.

ARTICLE XII

DEFAULT AND REMEDIES

     SECTION 12.1 Events of Default. Each of the following shall constitute an Event of
Default, whatever the reason for such event or circumstance and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment or order of any court or
any order, rule or regulation of any Governmental Authority or otherwise:

AMENDED AND RESTATED CREDIT AGREEMENT — Page 76

 

 

     (a) Default in Payment of Principal and Interest of Loans and Reimbursement
Obligations. Any Borrower shall default in any payment of principal of or interest on any Loan
or Reimbursement Obligation when and as due (whether at maturity, by reason of acceleration or
otherwise), and such default shall continue for a period of three (3) days.

     (b) Other Payment Default. Any Borrower or any other Credit Party shall default in
the payment when and as due (whether at maturity, by reason of acceleration or otherwise) of any
other Obligation (not addressed in clause (a) above), and such default shall continue for a
period of three (3) Business Days.

     (c) Misrepresentation. Any representation, warranty, certification or statement of
fact made or deemed made by or on behalf of any Credit Party or any Subsidiary thereof in this
Agreement, in any other Loan Document or in any document delivered in connection herewith or
therewith that is subject to materiality or Material Adverse Effect qualifications shall be
incorrect or misleading in any respect when made or deemed made, or any representation, warranty,
certification or statement of fact made or deemed made by or on behalf of any Credit Party or any
Subsidiary thereof in this Agreement, any other Loan Document or in any document delivered in
connection herewith or therewith that is not subject to materiality or Material Adverse Effect
qualifications shall be incorrect or misleading in any material respect when made or deemed made.

     (d) Default in Performance of Certain Covenants. Any Credit Party shall default in
the performance or observance of any covenant or agreement contained in Sections 8.1,
8.2 or 8.5(a) or Articles X or XI.

     (e) Default in Performance of Other Covenants and Conditions. Any Credit Party or any
Subsidiary thereof shall default in the performance or observance of any term, covenant, condition
or agreement contained in this Agreement (other than as specifically provided for in this Section)
or any other Loan Document and such default shall continue for a period of ten (10) days.

     (f) Indebtedness Cross-Default. (i) Any Credit Party or any Subsidiary thereof shall
(A) default in the payment of any Indebtedness (other than the Loans or any Reimbursement
Obligation) the aggregate outstanding amount of which Indebtedness is in excess of the Threshold
Amount beyond the period of grace, if any, provided in the instrument or agreement under which such
Indebtedness was created, or (B) default in the observance or performance of any other agreement or
condition relating to any Indebtedness (other than the Loans or any Reimbursement Obligation) the
aggregate outstanding amount of which Indebtedness is in excess of the Threshold Amount or
contained in any instrument or agreement evidencing, securing or relating thereto or (ii) any other
event shall occur or condition exist (other than as a result of a voluntary sale or transfer of
property or assets securing such Indebtedness, which sale or transfer is permitted by this
Agreement), the effect of which default or other event or condition is to cause, or to permit the
holder or holders of such Indebtedness referred to in clause (i) preceding (or a trustee or
agent on behalf of such holder or holders) to cause, with the giving of notice and/or lapse of
time, if required, any such Indebtedness referred to in clause (i) preceding to become due
prior to its stated maturity (any applicable grace period having expired).

     (g) Other Cross-Defaults. Any Credit Party or any Subsidiary thereof shall default in
the payment when due, or in the performance or observance, of any obligation or condition of any
Material Contract in an instance where the amount in controversy is more than the Threshold Amount
and all applicable grace, notice or other cure periods thereunder shall have expired unless, but
only as long as, the existence of any such default is being contested by such Credit Party or any
such Subsidiary in good faith by appropriate proceedings and adequate reserves in respect thereof

AMENDED AND RESTATED CREDIT AGREEMENT — Page 77

 

 

have been established on the books of such Credit Party or Subsidiary to the extent required
by GAAP.

     (h) Change in Control. Any Change in Control shall occur.

     (i) Voluntary Bankruptcy Proceeding. Any Credit Party or any Subsidiary thereof shall
(i) commence a voluntary case under the federal bankruptcy laws (as now or hereafter in effect),
(ii) file a petition seeking to take advantage of any other laws, domestic or foreign, relating to
bankruptcy, insolvency, receivership, reorganization, winding up or composition or adjustment of
debts, (iii) consent to or fail to contest in a timely and appropriate manner any petition filed
against it in an involuntary case under such bankruptcy laws or other laws, (iv) apply for or
consent to, or fail to contest in a timely and appropriate manner, the appointment of, or the
taking of possession by, a receiver, custodian, trustee, or liquidator of itself or of a
substantial part of its property, domestic or foreign, (v) admit in writing its inability to pay
its debts as they become due, (vi) make a general assignment for the benefit of creditors, or (vii)
take any corporate or other entity action for the purpose of authorizing any of the foregoing.

     (j) Involuntary Bankruptcy Proceeding. A case or other proceeding shall be commenced
against any Credit Party or any Subsidiary thereof in any court of competent jurisdiction seeking
(i) relief under the federal bankruptcy laws (as now or hereafter in effect) or under any other
laws, domestic or foreign, relating to bankruptcy, insolvency, receivership, reorganization,
winding up or composition or adjustment of debts, or (ii) the appointment of a trustee, receiver,
custodian, liquidator or the like for any Credit Party or any Subsidiary thereof or for all or any
substantial part of their respective assets, domestic or foreign, and such case or proceeding shall
continue without dismissal or stay for a period of sixty (60) consecutive days, or an order
granting the relief requested in such case or proceeding (including, but not limited to, an order
for relief under such federal bankruptcy laws) shall be entered.

     (k) Failure of Agreements. This Agreement or any other Loan Document shall cease to
be in full force and effect or shall be declared null and void or the validity or enforceability
thereof shall be contested or challenged by any Credit Party or Guarantor or any of its respective
Subsidiaries, or any Credit Party or any Guarantor shall deny that it has any further liability or
obligation under any of the Loan Documents, or any Lien created by the Loan Documents shall for any
reason cease to be a valid, first priority perfected security interest in and Lien upon any of the
Collateral purported to be covered thereby, subject to any Liens permitted under Section
11.2 of this Agreement and except to the extent that any such loss of perfection or priority
results from the failure of the Administrative Agent to maintain possession of certificates
representing securities pledged under the Security Agreement.

     (l) Termination Event. The occurrence of any of the following events: (i) any Credit
Party or any ERISA Affiliate fails to make full payment when due of all amounts which, under the
provisions of any Pension Plan or Section 412 or Section 430 of the Code, any Credit Party or any
ERISA Affiliate is required to pay as contributions thereto, but only to the extent that a Lien
could reasonably be expected to arise as a result of such failure under Section 412 or Section
430(k) of the Code, Section 302 or Section 303(k) of ERISA or under Title IV of ERISA, (ii) an
accumulated funding deficiency or a funding shortfall as determined under Section 412 or Section
430 of the Code, respectively, which could reasonably be expected to have a Material Adverse
Effect, (iii) a Termination Event or (iv) any Credit Party or any ERISA Affiliate as employers
under one or more Multiemployer Plans makes a complete or partial withdrawal from any such
Multiemployer Plan and the plan sponsor of such Multiemployer Plans notifies such withdrawing
employer that such employer has incurred a withdrawal liability requiring payments, which
withdrawal or liability could reasonably be expected to have a Material Adverse Effect.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 78

 

 

     (m) Judgment. A judgment or order for the payment of money which causes the aggregate
amount of all such judgments or orders (net of any amounts covered by insurance) to exceed the
Threshold Amount shall be entered against any Credit Party or any Subsidiary thereof by any court
and such judgment or order shall continue without having been discharged, vacated or stayed for a
period of thirty (30) consecutive days after the entry thereof.

     (n) Material Adverse Effect. Any Material Adverse Effect shall occur or exist.

     SECTION 12.2 Remedies. Upon the occurrence of an Event of Default, with the consent
of the Required Lenders if (but only if) such Event of Default is other than an Event of Default
under Section 12.1(a), 12.1(b), 12.1(i) or 12.1(j), the
Administrative Agent may, or upon the request of the Required Lenders, the Administrative Agent
shall, by notice to the Agent Borrower:

     (a) Acceleration; Termination of Facilities.

          (i) Terminate the Revolving Credit Commitment (and thereby the L/C Commitment) and
declare the principal of and interest on the Loans and the Reimbursement Obligations at the
time outstanding, and all other amounts owed to the Lenders and to the Administrative Agent
under this Agreement or any of the other Loan Documents (including, without limitation, all
L/C Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit
shall have presented or shall be entitled to present the documents required thereunder) and
all other Obligations (other than Specified Obligations), to be forthwith due and payable,
whereupon the same shall immediately become due and payable without presentment, demand,
protest or other notice of any kind, all of which are expressly waived by each Credit
Party, anything in this Agreement or the other Loan Documents to the contrary
notwithstanding, and terminate the Credit Facility and any right of the Borrowers
(including the Borrower Agent) to request borrowings or Letters of Credit thereunder;
provided, that upon the occurrence of an Event of Default specified in Section
12.1(i) or Section 12.1(j), the Credit Facility shall be automatically
terminated and all Obligations (other than Specified Obligations) shall automatically
become due and payable without presentment, demand, protest or other notice of any kind,
all of which are expressly waived by each Credit Party, anything in this Agreement or in
any other Loan Document to the contrary notwithstanding; and

          (ii) exercise on behalf of the Secured Parties all of its other rights and remedies
under this Agreement, the other Loan Documents and Applicable Law, in order to satisfy all
of the Obligations.

     (b) Letters of Credit. With respect to all Letters of Credit with respect to which
presentment for honor shall not have occurred at the time of an acceleration pursuant to
Section 12.(a), the Borrowers shall at such time deposit in a cash collateral account
opened by the Administrative Agent an amount equal to one hundred five percent (105%) of the
aggregate then undrawn and unexpired amount of such Letters of Credit. Amounts held in such cash
collateral account shall be applied by the Administrative Agent to the payment of drafts drawn
under such Letters of Credit, and the unused portion thereof after all such Letters of Credit shall
have expired or been fully drawn upon, if any, shall be applied to repay the other Obligations on a
pro rata basis. After all such Letters of Credit shall have expired or been fully
drawn upon, all Reimbursement Obligations shall have been satisfied and all other Obligations shall
have been paid in full, the balance, if any, in such cash collateral account shall be returned to
the Borrowers.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 79

 

 

     (c) Rights of Collection. Exercise on behalf of the Lenders all of its other rights
and remedies under this Agreement, the other Loan Documents and Applicable Law, in order to satisfy
all of the Obligations.

     SECTION 12.3 Rights and Remedies Cumulative; Non-Waiver; etc. The enumeration of the
rights and remedies of the Administrative Agent and the Lenders set forth in this Agreement is not
intended to be exhaustive and the exercise by the Administrative Agent and/or the Lenders of any
right or remedy shall not preclude the exercise of any other rights or remedies, all of which shall
be cumulative, and shall be in addition to any other right or remedy given hereunder or under the
other Loan Documents or that may now or hereafter exist at law or in equity or by suit or
otherwise. No delay or failure to take action on the part of the Administrative Agent or any
Lender in exercising any right, power or privilege shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right, power or privilege preclude any other or further
exercise thereof or the exercise of any other right, power or privilege or shall be construed to be
a waiver of any Event of Default. No course of dealing between or among any one or more of the
Credit Parties, the Administrative Agent and the Lenders or their respective agents or employees
shall be effective to change, modify or discharge any provision of this Agreement or any of the
other Loan Documents or to constitute a waiver of any Event of Default.

     SECTION 12.4 Crediting of Payments and Proceeds. In the event that the Obligations
have been accelerated pursuant to Section 12.2 or the Administrative Agent or any Lender
has exercised any remedy set forth in this Agreement or any other Loan Document, all payments
received by the Lenders upon the Obligations and all net proceeds from the enforcement of the
Obligations shall be applied:

     First, to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts, including attorney fees, payable to the Administrative Agent in its
capacity as such, the Issuing Lender in its capacity as such and the Swingline Lender in its
capacity as such (ratably among the Administrative Agent, the Issuing Lender and Swingline Lender
in proportion to the respective amounts described in this clause First payable to them);

     Second, to payment of that portion of the Obligations constituting fees, indemnities
and other amounts (other than principal and interest) payable to the Lenders under the Loan
Documents, including attorney fees (ratably among the Lenders in proportion to the respective
amounts described in this clause Second payable to them);

     Third, to payment of that portion of the Obligations constituting accrued and unpaid
interest on the Loans and Reimbursement Obligations (ratably among the Lenders in proportion to the
respective amounts described in this clause Third payable to them);

     Fourth, to payment of that portion of the Obligations constituting unpaid principal of
the Loans, Reimbursement Obligations, Specified Hedge Obligations (including any termination
payments and any accrued and unpaid interest thereon) and Specified Cash Management Obligations
(ratably among the Lenders and the counterparties to the Specified Hedge Obligations and Specified
Cash Management Obligations, as applicable, in proportion to the respective amounts described in
this clause Fourth held by them);

     Fifth, to the Administrative Agent for the account of the Issuing Lender, to cash
collateralize any L/C Obligations then outstanding; and

     Last, the balance, if any, after all Commitments have terminated and all of the
Obligations have been indefeasibly paid in full, to the Borrowers or as otherwise required by
Applicable Law.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 80

 

 

     SECTION 12.5 Administrative Agent May File Proofs of Claim. In case of the pendency
of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to any Credit Party, the Administrative Agent
(irrespective of whether the principal of any Loan or L/C Obligation shall then be due and payable
as herein expressed or by declaration or otherwise and irrespective of whether the Administrative
Agent shall have made any demand on the Borrowers) shall be entitled and empowered, by intervention
in such proceeding or otherwise:

     (a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans, L/C Obligations and all other Obligations arising under the Loan
Document that are owing and unpaid and to file such other documents as may be necessary or
advisable in order to have the claims of the Lenders and the Administrative Agent (including any
claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the
Administrative Agent and their respective agents and counsel and all other amounts due the Lenders
and the Administrative Agent under Sections 3.3, 5.3 and 14.3) allowed in
such judicial proceeding; and

     (b) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make such payments to the
Administrative Agent and, in the event that the Administrative Agent shall consent to the making of
such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its
agents and counsel, and any other amounts due the Administrative Agent under Sections 3.3,
5.3 and 14.3.

     Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement,
adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

ARTICLE XIII

THE ADMINISTRATIVE AGENT

     SECTION 13.1 Appointment and Authority. Each of the Lenders and the Issuing Lender
hereby irrevocably designates and appoints Wells Fargo to act on its behalf as the Administrative
Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take
such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent
by the terms hereof or thereof, together with such actions and powers as are reasonably incidental
thereto. Except as may be otherwise expressly provided herein, the provisions of this Article are
solely for the benefit of the Administrative Agent, the Lenders and the Issuing Lender, and no
Credit Policy shall have any rights as a third party beneficiary of any of such provisions.

     The Administrative Agent shall also act as the “collateral agent” under the Loan
Documents, and each of the Lenders (including in its capacity as counterparty to a Specified Hedge
Agreement or Specified Cash Management Arrangement, as applicable) and the Issuing Lender hereby
irrevocably appoints and authorizes the Administrative Agent to act as the agent of such Lender and
the Issuing Lender for purposes of acquiring, holding and enforcing any and all Liens

AMENDED AND RESTATED CREDIT AGREEMENT — Page 81

 

 

on Collateral granted by any of the Credit Party to secure any of the Obligations, together
with such powers and discretion as are reasonably incidental thereto. In this connection, the
Administrative Agent, as “collateral agent”, and any co-agents, sub-agents and attorneys-in-fact
appointed by the Administrative Agent pursuant to this Article XIII for purposes of holding
or enforcing any Lien on the Collateral (or any portion thereof) granted under the Security
Documents, or for exercising any rights and remedies thereunder at the direction of the
Administrative Agent), shall be entitled to the benefits of all provisions of this Articles
XIII and XIV (including Section 14.3, as though such co-agents, sub-agents and
attorneys-in-fact were the “collateral agent” under the Loan Documents) as if set forth in full
herein with respect thereto.

     SECTION 13.2 Rights as a Lender. The Person serving as the Administrative Agent
hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and
may exercise the same as though it were not the Administrative Agent, and the term “Lender” or
“Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires,
include the Person serving as the Administrative Agent hereunder in its individual capacity. Such
Person and its Affiliates may accept deposits from, lend money to, act as the financial advisor or
in any other advisory capacity for and generally engage in any kind of business with the Parent or
any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent
hereunder and without any duty to account therefor to the Lenders.

     SECTION 13.3 Exculpatory Provisions. The Administrative Agent shall not have any
duties or obligations except those expressly set forth herein and in the other Loan Documents.
Without limiting the generality of the foregoing, the Administrative Agent:

     (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing;

     (b) shall not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan
Documents that the Administrative Agent is required to exercise as directed in writing by the
Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided
for herein or in the other Loan Documents), provided that the Administrative Agent shall
not be required to take any action that, in its opinion or the opinion of its counsel, may expose
the Administrative Agent to liability or that is contrary to any Loan Document or Applicable Law;
and

     (c) shall not, except as expressly set forth herein and in the other Loan Documents, have any
duty to disclose, and shall not be liable for the failure to disclose, any information relating to
any Credit Party or any of its Affiliates that is communicated to or obtained by the Person serving
as the Administrative Agent or any of its Affiliates in any capacity.

The Administrative Agent shall not be liable for any action taken or not taken by it (i) with the
consent or at the request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be
necessary, under the circumstances as provided in Section 14.2 and Section 12.2) or
(ii) in the absence of its own gross negligence or willful misconduct as determined by a court of
competent jurisdiction by final nonappealable judgment. The Administrative Agent shall be deemed
not to have knowledge of any Default unless and until notice describing such Default is given to
the Administrative Agent by a Borrower, a Lender or the Issuing Lender. The Administrative Agent
shall not be responsible for or have any duty to ascertain or inquire into (i) any statement,
warranty or representation made in or in connection with this Agreement or any other Loan Document,
(ii) the contents of any certificate, report or other document delivered hereunder or thereunder or
in

AMENDED AND RESTATED CREDIT AGREEMENT — Page 82

 

 

connection herewith or therewith, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth herein or therein or the occurrence of any
Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any
other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any
condition set forth in Article VI or elsewhere herein, other than to confirm receipt of
items expressly required to be delivered to the Administrative Agent.

     SECTION 13.4 Reliance by the Administrative Agent. The Administrative Agent shall be
entitled to rely upon, and shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing (including any electronic
message, Internet or intranet website posting or other distribution) believed by it to be genuine
and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative
Agent also may rely upon any statement made to it orally or by telephone and believed by it to have
been made by the proper Person, and shall not incur any liability for relying thereon. In
determining compliance with any condition hereunder to the making of a Loan, or the issuance of a
Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the
Issuing Lender, the Administrative Agent may presume that such condition is satisfactory to such
Lender or the Issuing Lender unless the Administrative Agent shall have received notice to the
contrary from such Lender or the Issuing Lender prior to the making of such Loan or the issuance of
such Letter of Credit. The Administrative Agent may consult with legal counsel (who may be counsel
for a Credit Party), independent accountants and other experts selected by it, and shall not be
liable for any action taken or not taken by it in accordance with the advice of any such counsel,
accountants or experts.

     SECTION 13.5 Delegation of Duties. The Administrative Agent may perform any and all
of its duties and exercise its rights, remedies and powers hereunder or under any other Loan
Document by or through any one or more sub agents appointed by the Administrative Agent. The
Administrative Agent and any such sub agent may perform any and all of its duties and exercise its
rights, remedies and powers by or through their respective Related Parties. The exculpatory
provisions of this Article shall apply to any such sub agent and to the Related Parties of the
Administrative Agent and any such sub agent, and shall apply to their respective activities in
connection with the syndication of the Credit Facilities as well as activities as Administrative
Agent.

     SECTION 13.6 Resignation of Administrative Agent.

     (a) The Administrative Agent may at any time give notice of its resignation to the Lenders,
the Issuing Lender and the Borrower Agent. Upon receipt of any such notice of resignation, the
Required Lenders shall have the right, with the approval of the Borrower Agent if (but only if) no
Default or Event of Default then exists, which approval shall not be unreasonably withheld,
conditioned or delayed, to appoint a successor, which shall be a bank with an office in the United
States, or an Affiliate of any such bank with an office in the United States. If no such successor
shall have been so appointed by the Required Lenders and shall have accepted such appointment
within 30 days after the retiring Administrative Agent gives notice of its resignation, then the
retiring Administrative Agent may, on behalf of the Lenders and the Issuing Lender, appoint a
successor Administrative Agent meeting the qualifications set forth above, provided that, if the
Administrative Agent shall notify the Borrower Agent and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become effective in accordance
with such notice and (i) the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Loan Documents (except that in the case of any collateral
security held by the Administrative Agent on behalf of the Lenders or the Issuing Lender under any
of the Loan Documents, the retiring Administrative Agent shall continue to hold

AMENDED AND RESTATED CREDIT AGREEMENT — Page 83

 

 

such collateral security until such time as a successor Administrative Agent is appointed) and
(ii) all payments, communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender and the Issuing Lender directly,
until such time as the Required Lenders appoint a successor Administrative Agent as provided for
above in this Section. Upon the acceptance of a successor’s appointment as Administrative Agent
hereunder, such successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring (or retired) Administrative Agent, and the retiring
Administrative Agent shall be discharged from all of its duties and obligations hereunder or under
the other Loan Documents (if not already discharged therefrom as provided above in this Section).
The fees payable by the Borrowers to a successor Administrative Agent shall be the same as those
payable to its predecessor unless otherwise agreed between the Borrowers and such successor. After
the retiring Administrative Agent’s resignation hereunder and under the other Loan Documents, the
provisions of this Article and Section 14.3 shall continue in effect for the benefit of
such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect
of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent
was acting as Administrative Agent.

     (b) Any resignation by Wells Fargo as Administrative Agent pursuant to this Section shall also
constitute its resignation as Issuing Lender and Swingline Lender. Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, (i) such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the retiring Issuing Lender
and Swingline Lender, (ii) the retiring Issuing Lender and Swingline Lender shall be discharged
from all of their respective duties and obligations hereunder or under the other Loan Documents,
and (iii) the successor Issuing Lender shall issue letters of credit in substitution for the
Letters of Credit, if any, outstanding at the time of such succession or make other arrangement
satisfactory to the retiring Issuing Lender to effectively assume the obligations of the retiring
Issuing Lender with respect to such Letters of Credit.

     SECTION 13.7 Non-Reliance on Administrative Agent and Other Lenders. Each Lender and
the Issuing Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender or any of their Related Parties and based on such
documents and information as it has deemed appropriate, made its own credit analysis and decision
to enter into this Agreement. Each Lender and the Issuing Lender also acknowledges that it will,
independently and without reliance upon the Administrative Agent or any other Lender or any of
their Related Parties and based on such documents and information as it shall from time to time
deem appropriate, continue to make its own decisions in taking or not taking action under or based
upon this Agreement, any other Loan Document or any related agreement or any document furnished
hereunder or thereunder.

     SECTION 13.8 No Other Duties, etc. Anything herein to the contrary notwithstanding,
none of the syndication agents, documentation agents, co-agents, book manager, lead manager,
arranger, lead arranger or co-arranger listed on the cover page or signature pages hereof shall
have any powers, duties or responsibilities under this Agreement or any of the other Loan
Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or the
Issuing Lender hereunder.

     SECTION 13.9 Collateral and Guaranty Matters. The Lenders irrevocably authorize the
Administrative Agent, at its option and in its discretion (without notice to, or vote or consent
of, any counterparty to any Specified Hedge Agreement or Specified Cash Management Arrangement that
was a Lender or an Affiliate of any Lender at the time such agreement was executed),

AMENDED AND RESTATED CREDIT AGREEMENT — Page 84

 

 

     (a) to release any Lien on any Collateral granted to or held by the Administrative Agent, for
the ratable benefit of the Secured Parties (whether or not on the date of such release there may be
outstanding Specified Obligations or contingent indemnification obligations not then due), under
any Loan Document (i) upon repayment of all outstanding principal of and all accrued interest on
the Loans and Reimbursement Obligations, payment of all outstanding fees and expenses hereunder,
the termination of all Commitments and the expiration or termination of all Letters of Credit, (ii)
that is sold or to be sold as part of or in connection with any sale permitted hereunder or under
any other Loan Document, or (iii) subject to Section 14.2, if approved, authorized or
ratified in writing by the Required Lenders;

     (b) to subordinate or release any Lien on any Collateral (whether or not on the date of such
subordination or release there may be outstanding Specified Obligations or contingent
indemnification obligations not then due) granted to or held by the Administrative Agent under any
Loan Document to the holder of any Permitted Lien; and

     (c) to release any Subsidiary Guarantor (whether or not on the date of such release there may
be outstanding Specified Obligations or contingent indemnification obligations not then due) from
its obligations under the Guaranty Agreement, the Security Agreement and any other Loan Documents
if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder.

Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing
the Administrative Agent’s authority to release or subordinate its interest in particular types or
items of property, or to release any Subsidiary Guarantor from its obligations under the Guaranty
Agreement pursuant to this Section. Notwithstanding anything to the contrary contained herein,
each of the Credit Parties acknowledges and agrees that it is not a beneficiary of the authority
granted to the Administrative Agent under this Section and that it may not cause the Administrative
Agent to exercise any authority granted to the Administrative Agent hereunder.

     SECTION 13.10 Release of Liens and Guarantees of Subsidiaries. If any of the
Collateral shall be sold, transferred or otherwise disposed of by any Credit Party in a transaction
permitted by this Agreement (including by way of merger, consolidation or in connection with the
sale of a Subsidiary permitted hereunder) at a time when no Default or Event of Default exists or
would result therefrom, then the Administrative Agent, at the request and sole expense of the
Borrower Agent or such other Credit Party, shall execute and deliver without recourse,
representation or warranty all releases or other documents necessary or desirable for the release
of the Liens created by any of the Security Documents on such Collateral. In the case of any such
sale, transfer or disposal of any property constituting Collateral in a transaction constituting an
Asset Disposition permitted pursuant to Section 11.5, the Liens created by any of the
Security Documents on such property shall be automatically released (without need for further
action by any person). At the request and sole expense of the Borrower Agent and if no Default or
Event of Default then exists or would result therefrom, a Subsidiary that is a Credit Party shall
be released from all its obligations under this Agreement and under all other Loan Documents in the
event that all of the Capital Stock of such Subsidiary shall be sold, transferred or otherwise
disposed of in a transaction permitted by this Agreement (including by way of merger or
consolidation), and the Administrative Agent, at the request and sole expense of the Borrower
Agent, shall execute and deliver without recourse, representation or warranty all releases or other
documents necessary or desirable to evidence or confirm the foregoing.

     SECTION 13.11 Specified Cash Management Arrangements and Specified Hedge Agreements.
No Lender or Affiliate thereof party to a Specified Cash Management Arrangement or Specified Hedge
Agreement, as applicable, that obtains the benefits of Section 12.4 or any

	AMENDED AND RESTATED CREDIT AGREEMENT — Page 85

 

 

Collateral by virtue of the provisions hereof or of any Security Document shall have any right
to notice of any action or to consent to, direct or object to any action hereunder or under any
other Loan Document or otherwise in respect of the Collateral (including the release or impairment
of any Collateral) other than in its capacity as a Lender and, in such case, only to the extent
expressly provided in the Loan Documents.

ARTICLE XIV

MISCELLANEOUS

     SECTION 14.1 Notices.

     (a) Notices Generally. Except in the case of notices and other communications
expressly permitted to be given by telephone (and except as provided in Section 14.1(b)
below), all notices and other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or registered mail or sent by
telecopier as follows:

	 	 	 

	If to a Borrower or
	 	Southwest Convenience Stores, LLC
	another Credit Party:
	 	(if to a Borrower), as the Borrower Agent, or
	 
	 	c/o Southwest Convenience Stores, LLC
	 
	 	(if to another Credit Party)
	 
	 	7616 LBJ Freeway, Suite 300
	 
	 	Dallas, Texas  75251
	 
	 	Attention of: Chief Financial Officer
	 
	 	Telephone No.: 972-367-3669
	 
	 	Telecopy No.: 972-367-3724
	 
	 	E-mail: shai.evan@alonusa.com
	 
	 	 
	With copies to:
	 	Alon Brands, Inc.
	 
	 	7616 LBJ Freeway, Suite 300
	 
	 	Dallas, Texas  75251
	 
	 	Attention of: Chief Legal Counsel-Commercial
	 
	 	Telephone No.: 972-367-3753
	 
	 	Telecopy No.: 972-367-3724
	 
	 	E-mail: sean.markowitz@alonusa.com
	 
	 	 
	If to Wells Fargo as
	 	Wells Fargo, National Association
	Administrative Agent:
	 	1525 West W.T. Harris Blvd., 1B1
	 
	 	Charlotte, North Carolina  28262
	 
	 	Attention of: Andrew Lipford, Syndication Agency Services
	 
	 	Telephone No.: 704-427-4983
	 
	 	Telecopy No.: 704-590-2782
	 
	 	E-mail: andrew.lipford@wachovia.com

AMENDED AND RESTATED CREDIT AGREEMENT — Page 86

 

 

	 	 	 

	With copies to:
	 	Wells Fargo, National Association
	 
	 	4975 Preston Park Boulevard, Suite 280
	 
	 	Plano, Texas  75093
	 
	 	Attention of: Clint Bryant, Senior Vice President
	 
	 	Telephone No.: 972-599-5340
	 
	 	Telecopy No.: 972-867-5674
	 
	 	E-mail: clint.bryant@wellsfargo.com
	 
	 	 
	 
	 	and
	 
	 	 
	 
	 	Hunton & Williams LLP
	 
	 	1445 Ross Avenue, Suite 3700
	 
	 	Dallas, Texas 75202
	 
	 	Attention: Ronald D. Rosener, Esq.
	 
	 	Telephone No.: 214-468-3372
	 
	 	Telecopy No.: 214-740-7164
	 
	 	E-mail: rrosener@hunton.com
	 
	 	 
	If to any Lender:
	 	To the address set forth on the Register

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall
be deemed to have been given when received; notices sent by telecopier shall be deemed to have been
given when sent (except that, if not given during normal business hours for the recipient, shall be
deemed to have been given at the opening of business on the next business day for the recipient).
Notices delivered through electronic communications to the extent provided in Section
14.1(b) below, shall be effective as provided in said Section 14.1(b).

     (b) Electronic Communications. Notices and other communications to the Lenders and
the Issuing Lender hereunder may be delivered or furnished by electronic communication (including
e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative
Agent, provided that the foregoing shall not apply to notices to any Lender or the Issuing
Lender pursuant to Article II if such Lender or the Issuing Bank, as applicable, has
notified the Administrative Agent that is incapable of receiving notices under such Article by
electronic communication. The Administrative Agent or the Borrower Agent may, in its discretion,
agree to accept notices and other communications to it hereunder by electronic communications
pursuant to procedures approved by it, provided that approval of such procedures may be
limited to particular notices or communications.

     Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement
from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the next business day
for the recipient, and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 87

 

 

     (c) Administrative Agent’s Office. The Administrative Agent hereby designates its
office located at the address set forth above, or any subsequent office which shall have been
specified for such purpose by written notice to the Borrower Agent and the Lenders, as the
Administrative Agent’s Office referred to herein, to which payments due are to be made and at which
Loans will be disbursed and Letters of Credit requested.

     (d) Change of Address, Etc. Any party hereto may change its address or telecopier
number for notices and other communications hereunder by notice to the other parties hereto.

     SECTION 14.2 Amendments, Waivers and Consents. Except as set forth below or as
specifically provided in any Loan Document, any term, covenant, agreement or condition of this
Agreement or any of the other Loan Documents may be amended or waived by the Lenders, and any
consent given by the Lenders, if, but only if, such amendment, waiver or consent is in writing
signed by the Required Lenders (or by the Administrative Agent with the consent of the Required
Lenders) and delivered to the Administrative Agent and, in the case of an amendment, signed by the
Borrowers and any other Credit Party which is a party thereto; provided, that no amendment,
waiver or consent shall:

     (a) (i) without the prior written consent of the Required Revolving Credit Lenders, amend,
modify or waive (A) Section 6.2 or any other provision of this Agreement if the effect of
such amendment, modification or waiver is to require the Revolving Credit Lenders (pursuant to, in
the case of any such amendment to a provision hereof other than Section 6.2, any
substantially concurrent request by the Borrower Agent for a borrowing of Revolving Credit Loans)
to make Revolving Credit Loans when the Revolving Credit Lenders would not otherwise be required to
do so, (B) the Maximum Swingline Amount or (C) the amount of the L/C Commitment, or (ii) without
the prior written consent of all Revolving Credit Lenders, amend, modify or waive the definition of
the term “Borrowing Base”;

     (b) increase the Revolving Credit Commitment of any Revolving Credit Lender, the Maximum
Swingline Amount of the Swingline Lender or the L/C Commitment of the Issuing Lender (or reinstate
any Revolving Credit Commitment or the L/C Commitment terminated pursuant to Section 12.2)
or the amount of Loans of any Lender, in any case, without the written consent of such Lender;

     (c) postpone any date fixed by this Agreement or any other Loan Document for any payment
(including any or mandatory prepayment) of principal, interest, fees or other amounts due to the
Lenders (or any of them) or any scheduled or mandatory reduction of the Revolving Credit Commitment
hereunder or under any other Loan Document, in each case without the written consent of each Lender
directly and adversely affected thereby;

     (d) reduce the principal of, or the rate of interest specified herein on, any Loan or
Reimbursement Obligation, or (subject to clause (iv) of the second proviso to this Section below)
any fees or other amounts payable hereunder or under any other Loan Document without the written
consent of each Lender directly and adversely affected thereby; provided that only the
consent of the Required Lenders shall be necessary (i) to waive any obligation of the Borrowers to
pay interest at the rate set forth in Section 5.1(c) during the continuance of an Event of
Default or (ii) to amend any financial covenant hereunder (or any defined term used therein) even
if the effect of such amendment would be to reduce the rate of interest on any Loan or L/C
Obligation or to reduce any fee payable hereunder;

AMENDED AND RESTATED CREDIT AGREEMENT — Page 88

 

 

     (e) change Section 5.6 or Section 12.4 in a manner that would alter the
pro rata sharing of payments required thereby without the written consent of each
Lender directly and adversely affected thereby;

     (f) change Section 4.4(b)(v) in a manner that would alter the order of application of
amounts prepaid pursuant thereto without the written consent of each Lender directly and adversely
affected thereby;

     (g) change any provision of this Section or reduce the percentages specified in the definition
of “Required Lenders,” “Required Revolving Credit Lenders” or any other provision hereof specifying
the number or percentage of Lenders required to amend, waive or otherwise modify any rights
hereunder or make any determination or grant any consent hereunder, without the written consent of
each Lender directly affected thereby;

     (h) consent to the assignment or transfer by any Credit Party of such Credit Party’s rights
and obligations under any Loan Document to which it is a party (except as permitted pursuant to
Section 11.4), in each case, without the written consent of each Lender;

     (i) release any Guarantor from any Guaranty Agreement (other than as authorized in Section
13.9), without the written consent of each Lender; or

     (j) release any material portion of the Collateral or release any Security Document (other
than as authorized in Section 13.9 or as otherwise specifically permitted or contemplated
in this Agreement or the applicable Security Document) without the written consent of each Lender;

provided further, that (i) no amendment, waiver or consent shall, unless in writing
and signed by the Issuing Lender in addition to the Lenders required above, affect the rights or
duties of the Issuing Lender under this Agreement or any Letter of Credit Application relating to
any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall,
unless in writing and signed by the Swingline Lender in addition to the Lenders required above,
affect the rights or duties of the Swingline Lender under this Agreement; (iii) no amendment,
waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to
the Lenders required above, affect the rights or duties of the Administrative Agent under this
Agreement or any other Loan Document; (iv) the Fee Letter may be amended, or rights or privileges
thereunder waived, in a writing executed only by the parties thereto and (v) any waiver, amendment
or modification of this Agreement that by its terms affects the rights or duties under this
Agreement of Lenders holding Loans or Commitments of a particular Class (but not the Lenders
holding Loans or Commitments of any other Class) may be effected by an agreement or agreements in
writing entered into by the Borrowers and the requisite percentage in interest of the affected
Class of Lenders that would be required to consent thereto under this Section if such Class of
Lenders were the only Class of Lenders hereunder at the time. Notwithstanding anything to the
contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment,
waiver or consent hereunder, except that the Revolving Credit Commitment of such Lender may not be
increased or extended without the consent of such Lender.

     SECTION 14.3 Expenses; Indemnity.

     (a) Costs and Expenses. Each of Borrowers jointly and severally agrees that it shall
pay (i) all reasonable out of pocket expenses incurred by the Administrative Agent and its
Affiliates (including the reasonable fees, charges and disbursements of counsel for the
Administrative Agent) in connection with the syndication of the credit facilities provided for
herein, the preparation, negotiation, execution, delivery and administration of this Agreement and

AMENDED AND RESTATED CREDIT AGREEMENT — Page 89

 

 

the other Loan Documents or any amendments, modifications or waivers of the provisions hereof
or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated),
(ii) all reasonable out of pocket expenses incurred by the Issuing Lender in connection with the
issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment
thereunder and (iii) all out of pocket expenses incurred by the Administrative Agent, any Lender or
the Issuing Lender (including the fees, charges and disbursements of any counsel for the
Administrative Agent, any Lender or the Issuing Lender, provided that, for purposes of this
parenthetical, such counsel of the Administrative Agent, the Lenders and the Issuing Lender shall
be limited to one United States counsel and one counsel in each applicable foreign jurisdiction, in
each case as chosen by the Administrative Agent) in connection with the enforcement, exercise
and/or protection of its rights and/or remedies (A) in connection with this Agreement and the other
Loan Documents, including its rights under this Section, or (B) in connection with the Loans made
or Letters of Credit issued hereunder, including all such out of pocket expenses incurred during
any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.
Notwithstanding the foregoing or Section 14.3(b) below, the Borrowers’ obligations under
clause (i) of this Section 14.3(a), and the Borrowers’ indemnification obligations
under Section 14.3(b) below as such indemnification obligations relate to the expenses,
fees, charges and disbursements referred to in clause (i) of this Section 14.3(a),
shall be limited as and to the extent provided in numbered paragraph 4 of the Fee Letter.

     (b) Indemnification by the Borrowers. Each of the Borrowers jointly and severally
agrees that it shall indemnify the Administrative Agent (and any sub-agent thereof), each Lender,
the Issuing Lender and the Swingline Lender and each Related Party of any of the foregoing Persons
(each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless
from, and shall pay or reimburse any such Indemnitee for, any and all losses, claims (including,
without limitation, any Environmental Claims or civil penalties or fines assessed by OFAC),
damages, liabilities and related expenses (including the fees, charges and disbursements of any
counsel for any Indemnitee) incurred by any Indemnitee or asserted against any Indemnitee by any
third party or by a Borrower or any other Credit Party arising out of, in connection with, or as a
result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement
or instrument contemplated hereby or thereby, the performance by the parties hereto of their
respective obligations hereunder or thereunder or the consummation of the transactions contemplated
hereby or thereby, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds
therefrom (including any refusal by the Issuing Lender to honor a demand for payment under a Letter
of Credit if the documents presented in connection with such demand do not strictly comply with the
terms of such Letter of Credit), (iii) any actual or alleged presence or Release of Hazardous
Materials on or from any property owned or operated by any Credit Party or any Subsidiary thereof,
or any Environmental Claim related in any way to any Credit Party or any Subsidiary, (iv) any
actual or prospective claim, litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory, whether brought by a third party or
by any Credit Party or any Subsidiary thereof, and regardless of whether any Indemnitee is a party
thereto, or (v) any claim (including, without limitation, any Environmental Claims or civil
penalties or fines assessed by the U.S. Department of the Treasury’s Office of Foreign Assets
Control), investigation, litigation or other proceeding (whether or not the Administrative Agent or
any Lender is a party thereto) and the prosecution and defense thereof, arising out of or in any
way connected with the Loans, this Agreement, any other Loan Document, or any documents
contemplated by or referred to herein or therein or the transactions contemplated hereby or
thereby, including without limitation, reasonable attorneys and consultant’s fees, provided
that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses,
claims, damages, liabilities or related expenses (A) are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or

AMENDED AND RESTATED CREDIT AGREEMENT — Page 90

 

 

willful misconduct of such Indemnitee or (B) result from a claim brought by any Credit Party
or any Subsidiary thereof against an Indemnitee for breach in bad faith of such Indemnitee’s
obligations hereunder or under any other Loan Document, if such Credit Party or such Subsidiary has
obtained a final and nonappealable judgment in its favor on such claim as determined by a court of
competent jurisdiction.

     (c) Reimbursement by Lenders. To the extent that the Borrowers for any reason fail to
indefeasibly pay any amount required under Section 14.3(a) or Section 14.3(b) to be
paid by it to the Administrative Agent (or any sub-agent thereof), the Issuing Lender, the
Swingline Lender or any Related Party of any of the foregoing, each Lender severally agrees to pay
to the Administrative Agent (or any such sub-agent), the Issuing Lender, the Swingline Lender or
such Related Party, as the case may be, such Lender’s Commitment Percentage (determined as of the
time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount, provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted against the
Administrative Agent (or any such sub-agent), the Issuing Lender or the Swingline Lender in its
capacity as such, or against any Related Party of any of the foregoing acting for the
Administrative Agent (or any such sub-agent), the Issuing Lender or the Swingline Lender in
connection with such capacity. The obligations of the Lenders under this Section 14.3(c)
are subject to the provisions of Section 5.7.

     (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
Applicable Law, neither any Borrower nor any other Credit Party, nor any Lender, shall assert, and
each hereby waives, any claim against any Indemnitee, on any theory of liability, for special,
indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out
of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement
or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or
Letter of Credit or the use of the proceeds thereof. No Indemnitee referred to in Section
14.3(b) above shall be liable for any damages arising from the use by unintended recipients of
any information or other materials distributed by it through telecommunications, electronic or
other information transmission systems in connection with this Agreement or the other Loan
Documents or the transactions contemplated hereby or thereby.

     (e) Payments. All amounts due under this Section shall be payable promptly after
demand therefor, which demand shall be accompanied by a statement from the applicable Person to
whom such payment is due setting forth such amounts in reasonable detail.

     SECTION 14.4 Right of Set Off. If an Event of Default shall have occurred and be
continuing, each Lender, the Issuing Lender, the Swingline Lender and each of their respective
Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted
by Applicable Law, to set off and apply any and all deposits (general or special, time or demand,
provisional or final, in whatever currency) at any time held and other obligations (in whatever
currency) at any time owing by such Lender, the Issuing Lender, the Swingline Lender or any such
Affiliate to or for the credit or the account of any Borrower or any other Credit Party against any
and all of the obligations of any Borrower or any other Credit Party now or hereafter existing
under this Agreement or any other Loan Document to such Lender, the Issuing Lender or the Swingline
Lender, irrespective of whether or not such Lender, the Issuing Lender or the Swingline Lender
shall have made any demand under this Agreement or any other Loan Document and although such
obligations of such Borrower or such Credit Party may be contingent or unmatured or are owed to a
branch or office of such Lender, the Issuing Lender or the Swingline Lender different from the
branch or office holding such deposit or obligated on such indebtedness. The rights of each
Lender, the Issuing Lender, the Swingline Lender and their respective Affiliates under this Section
are in addition to other rights and remedies (including other rights of setoff) that such Lender,
the

AMENDED AND RESTATED CREDIT AGREEMENT — Page 91

 

 

Issuing Lender, the Swingline Lender or their respective Affiliates may have. Each Lender,
the Issuing Lender and the Swingline Lender agrees to notify the Borrower Agent and the
Administrative Agent promptly after any such setoff and application; provided that the
failure to give such notice shall not affect the validity of such setoff and application.

     SECTION 14.5 Governing Law; Jurisdiction, Etc.

     (a) Governing Law. This Agreement and the other Loan Documents, unless expressly set
forth therein, shall be governed by, and construed and enforced in accordance with, the law of the
State of Texas, without reference to the conflicts or choice of law principles thereof that would
require application of another law (but giving effect to the federal laws relating to national
banks).

     (b) Submission to Jurisdiction. Each of the Borrowers and the other Credit Parties
irrevocably and unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of the courts of the State of Texas, sitting in Dallas County and of the United States
District Court of the Northern District of Texas, and any appellate court from any thereof, in any
action or proceeding arising out of or relating to this Agreement or any other Loan Document, or
for recognition or enforcement of any judgment, and each of the parties hereto irrevocably and
unconditionally agrees that all claims in respect of any such action or proceeding may be heard and
determined in such Texas state court or, to the fullest extent permitted by Applicable Law, in such
Federal court. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Agreement or in any other Loan Document
shall affect any right that the Administrative Agent, any Lender or the Issuing Lender may
otherwise have to bring any action or proceeding relating to this Agreement or any other Loan
Document against any Borrower or any other Credit Party or its properties in the courts of any
jurisdiction.

     (c) Waiver of Venue. Each Borrower and each other Credit Party irrevocably and
unconditionally waives, to the fullest extent permitted by Applicable Law, any objection that it
may now or hereafter have to the laying of venue of any action or proceeding arising out of or
relating to this Agreement or any other Loan Document in any court referred to in Section
14.5(b). Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted
by Applicable Law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

     (d) Service of Process. Each party hereto irrevocably consents to service of process
in the manner provided for notices in Section 14.1. Nothing in this Agreement will affect
the right of any party hereto to serve process in any other manner permitted by Applicable Law.

     SECTION 14.6 Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT
OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
BY,

AMENDED AND RESTATED CREDIT AGREEMENT — Page 92

 

 

AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     SECTION 14.7 Reversal of Payments. To the extent any Credit Party makes a payment or
payments to the Administrative Agent for the ratable benefit of the Lenders or the Administrative
Agent receives any payment or proceeds of the Collateral which payments or proceeds or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or
required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or
federal law, common law or equitable cause, then, to the extent of such payment or proceeds repaid,
the Obligations or part thereof intended to be satisfied shall be revived and continued in full
force and effect as if such payment or proceeds had not been received by the Administrative Agent.

     SECTION 14.8 Injunctive Relief; Punitive Damages.

     (a) Each of the Borrowers and the other Credit Parties recognizes that, in the event a
Borrower or such other Credit Party fails to perform, observe or discharge any of its obligations
or liabilities under this Agreement, any remedy of law may prove to be inadequate relief to the
Lenders. Therefore, each of the Borrowers and the other Credit Parties agrees that the
Administrative Agent and the Lenders, at their option, shall be entitled to temporary and permanent
injunctive relief in any such case without the necessity of proving actual damages.

     (b) The Administrative Agent, the Lenders, the Borrowers and the other Credit Parties hereby
agree that no such Person shall have a remedy of punitive or exemplary damages against any other
party to a Loan Document and each such Person hereby waives any right or claim to punitive or
exemplary damages that they may now have or may arise in the future in connection with any Dispute,
whether such Dispute is resolved through arbitration or judicially.

     SECTION 14.9 [Intentionally omitted.]

     SECTION 14.10 Successors and Assigns; Participations.

     (a) Successors and Assigns Generally. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby, except that neither any Borrower nor any other Credit Party may assign or
otherwise transfer any of its rights or obligations hereunder without the prior written consent of
the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder except (i) to an assignee in accordance with the provisions of
Section 14.10(b), (ii) by way of participation in accordance with the provisions of
Section 14.10(d) or (iii) by way of pledge or assignment of a security interest subject to
the restrictions of Section 14.10(f) (and any other attempted assignment or transfer by any
party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be
construed to confer upon any Person (other than the parties hereto, their respective successors and
assigns permitted hereby, Participants to the extent provided in Section 14.10(d) and, to
the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent
and the Lenders) any legal or equitable right, remedy or claim under or by reason of this
Agreement.

     (b) Assignments by Lenders. Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Revolving Credit Commitment and the Loans at the time owing to it); provided
that any such assignment shall be subject to the following conditions:

AMENDED AND RESTATED CREDIT AGREEMENT — Page 93

 

 

          (i) Minimum Amounts.

     (A) in the case of an assignment of the entire remaining amount of the
assigning Lender’s Revolving Credit Commitment and the Loans at the time owing to
it or in the case of an assignment to a Lender, an Affiliate of a Lender or an
Approved Fund, no minimum amount need be assigned; and

     (B) in any case not described in paragraph (i)(A) of this Section
14.10(b), the aggregate amount of the Revolving Credit Commitment (which for
this purpose includes Loans outstanding thereunder) or, if the applicable Revolving
Credit Commitment is not then in effect, the principal outstanding balance of the
Loans of the assigning Lender subject to each such assignment (determined as of the
date the Assignment and Assumption with respect to such assignment is delivered to
the Administrative Agent or, if “Trade Date” is specified in the Assignment and
Assumption, as of the Trade Date) shall not be less than $2,500,000, in the case of
any assignment in respect of the Revolving Credit Facility, $5,000,000, in the case
of any assignment in respect of the Renewal Term Loan Facility or $2,500,000, in
the case of any assignment of the Additional Term Loan Facility, in each case
unless each of the Administrative Agent and, so long as no Event of Default has
occurred and is continuing, the Borrower Agent otherwise consents (each such
consent not to be unreasonably withheld, conditioned or delayed); provided
that the Borrower Agent shall be deemed to have given its consent five (5) Business
Days after the date written notice thereof has been delivered by the assigning
Lender (through the Administrative Agent) unless such consent is expressly refused
by the Borrower Agent prior to such fifth (5th) Business;

          (ii) Proportionate Amounts. Each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and obligations
under this Agreement with respect to the Loan or the Revolving Credit Commitment assigned
except that this clause (ii) shall not prohibit any Lender from assigning all or a portion
of its rights and obligations among separate Facilities on a non-pro rata
basis;

          (iii) Required Consents. No consent shall be required for any assignment
except to the extent required by paragraph (i)(B) of this Section 14.10(b) and, in
addition:

     (A) the consent of the Borrower Agent (such consent not to be unreasonably
withheld, conditioned or delayed) shall be required unless (1) an Event of Default
has occurred and is continuing at the time of such assignment or (2) such
assignment is to a Lender, an Affiliate of a Lender or an Approved Fund;
provided, that the Borrower Agent shall be deemed to have consented to any
such assignment unless it shall object thereto by written notice to the
Administrative Agent within five (5) Business Days after having received notice
thereof;

     (B) the consent of the Administrative Agent (such consent not to be
unreasonably withheld, conditioned or delayed) shall be required for assignments in
respect of (i) the Revolving Credit Facility if such assignment is to a Person that
is not a Lender with a Revolving Credit Commitment, an Affiliate of such Lender or
an Approved Fund with respect to such Lender or (ii) the Renewal Term Loan or the
Additional Term Loan to a Person who is not a Lender, an Affiliate of a Lender or
an Approved Fund; and

AMENDED AND RESTATED CREDIT AGREEMENT — Page 94

 

 

          (C) the consents of the Issuing Lender and the Swingline Lender (such consents
not to be unreasonably withheld, conditioned or delayed) shall be required for any
assignment that increases the obligation of the assignee to participate in exposure
under one or more Letters of Credit (whether or not then outstanding) or for any
assignment in respect of the Revolving Credit Facility;

     (iv) Assignment and Assumption. The parties to each assignment shall execute
and deliver to the Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee of $3,500 for each assignment (provided, that only
one such fee will be payable in connection with simultaneous assignments to two or more
Approved Funds by a Lender), and the assignee, if it is not a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire;

     (v) No Assignment to Certain Persons. No such assignment shall be made to the
any Borrower or any other Credit Party or any of its Affiliates or Subsidiaries; and

     (vi) No Assignment to Natural Persons. No such assignment shall be made to a
natural person.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to Section
14.10(c), from and after the effective date specified in each Assignment and Assumption, the
assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be
entitled to the benefits of Sections 5.8, 5.9, 5.10, 5.11 and
14.3 with respect to facts and circumstances occurring prior to the effective date of such
assignment. Any assignment or transfer by a Lender of rights or obligations under this Agreement
that does not comply with this Section 14.10 shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and obligations in accordance
with Section 14.10(d).

     (c) Register. The Administrative Agent, acting solely for this purpose as an agent of
the Borrowers, shall maintain at one of its offices in the United States, a copy of each Assignment
and Assumption and each Joinder Agreement delivered to it and a register for the recordation of the
names and addresses of the Lenders, and the Revolving Credit Commitment of, and principal amounts
of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the
“Register”). The entries in the Register shall be conclusive, and the Borrowers, the
Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for inspection by the
Borrower Agent and any Lender (but only to the extent of entries in the Register that are
applicable to such Lender), at any reasonable time and from time to time upon reasonable prior
notice.

     (d) Participations. Any Lender may at any time, without the consent of any Credit
Party or the Administrative Agent, but with notice to the Borrower Agent and the Administrative
Agent, sell participations to any Person (other than a natural person or a Borrower or any other
Credit Party or any of its Affiliates or Subsidiaries) (each, a “Participant”) in all or a
portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion
of its Revolving Credit Commitment and/or the Loans owing to it); provided that (i) such
Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain
solely

AMENDED AND RESTATED CREDIT AGREEMENT — Page 95

 

 

responsible to the other parties hereto for the performance of such obligations and (iii) the
Borrowers, the Administrative Agent, the Issuing Lender, the Swingline Lender and the other Lenders
shall continue to deal solely and directly with such Lender in connection with such Lender’s rights
and obligations under this Agreement.

     Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such agreement
or instrument may provide that such Lender will not, without the consent of the Participant, agree
to any amendment, modification or waiver or modification described in Section 14.2 that
directly affects such Participant and could not be affected by a vote of the Required Lenders.
Subject to Section 14.10(e), the Borrowers agree that each Participant shall be entitled to
the benefits of Sections 5.8, 5.9, 5.10 and 5.11 to the same extent
as if it were a Lender and had acquired its interest by assignment pursuant to Section
14.10(b). To the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 14.4 as though it were a Lender, provided such Participant agrees to be
subject to Section 5.6 as though it were a Lender.

     (e) Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Sections 5.10 and 5.11 than the applicable Lender
would have been entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the Borrower Agent’s prior
written consent. No Participant shall be entitled to the benefits of Section 5.11 unless
the Borrower Agent is notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower Agent, to comply with Section 5.11(e) as though it
were a Lender.

     (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement to secure obligations of such Lender,
including without limitation any pledge or assignment to secure obligations to a Federal Reserve
Bank; provided that no such pledge or assignment shall release such Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

     SECTION 14.11 Confidentiality. Each of the Administrative Agent, the Lenders and the
Issuing Lender agrees to maintain the confidentiality of the Information (as defined below), except
that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective
partners, directors, officers, employees, agents, advisors and other representatives (it being
understood that the Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information confidential), (b) to the extent
requested by, or required to be disclosed to, any rating agency, or regulatory or similar authority
purporting to have jurisdiction over it (including any self-regulatory authority, such as the
National Association of Insurance Commissioners), (c) to the extent required by Applicable Laws or
regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies under this Agreement or under any other Loan Document
(or any Specified Hedge Agreement) or any action or proceeding relating to this Agreement or any
other Loan Document (or any Hedge Agreement with a Lender or the Administrative Agent) or the
enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations under this Agreement,
Participant or proposed Participant, or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g)
with the consent of the Borrower Agent, (h) to Gold Sheets and other similar bank trade
publications, such information to consist of deal terms and other information customarily found in
such publications, (i) to the extent such Information (A) becomes publicly available other

AMENDED AND RESTATED CREDIT AGREEMENT — Page 96

 

 

than as a result of a breach of this Section or (B) becomes available to the Administrative
Agent, any Lender, the Issuing Lender or any of their respective Affiliates on a nonconfidential
basis from a source other than the Borrower or (j) to governmental regulatory authorities in
connection with any regulatory examination of the Administrative Agent or any Lender or in
accordance with the Administrative Agent’s or any Lender’s regulatory compliance policy if the
Administrative Agent or such Lender deems necessary for the mitigation of claims by those
authorities against the Administrative Agent or such Lender or any of its subsidiaries or
affiliates. For purposes of this Section, “Information” means all information received
from any Credit Party or any Subsidiary thereof relating to any Credit Party or any Subsidiary
thereof or any of their respective businesses, other than any such information that is available to
the Administrative Agent, any Lender or the Issuing Lender on a nonconfidential basis prior to
disclosure by any Credit Party or any Subsidiary thereof; provided that, in the case of
information received from a Credit Party or any Subsidiary thereof after the date hereof, such
information is clearly identified at the time of delivery as confidential. Any Person required to
maintain the confidentiality of Information as provided in this Section shall be considered to have
complied with its obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to its own
confidential information.

     SECTION 14.12 Performance of Duties. Each of the Credit Party’s obligations under
this Agreement and each of the other Loan Documents shall be performed by such Credit Party at its
sole cost and expense.

     SECTION 14.13 All Powers Coupled with Interest. All powers of attorney and other
authorizations granted to the Administrative Agent, any Lender or any Person designated by the
Administrative Agent or any Lender pursuant to any provisions of this Agreement or any of the other
Loan Documents shall be deemed coupled with an interest and shall be irrevocable so long as any of
the Obligations remain unpaid or unsatisfied, the Revolving Credit Commitment or any other
Commitment remains in effect or any Credit Facility has not been terminated.

     SECTION 14.14 Survival.

     (a) All representations and warranties set forth in Article VII and all
representations and warranties contained in any certificate or any of the Loan Documents
(including, but not limited to, any such representation or warranty made in or in connection with
any amendment thereto) shall constitute representations and warranties made under this Agreement.
Unless otherwise expressly provided in this Agreement or the other applicable Loan Document(s), all
representations and warranties made under this Agreement shall be made or deemed to be made at and
as of the Closing Date and on each borrowing, continuation, conversion, issuance or extension date
as provided in Section 6.2(a), shall survive the Closing Date and shall not be waived by
the execution and delivery of this Agreement, any investigation made by or on behalf of the Lenders
or any borrowing, continuation, conversion, issuance or extension hereunder.

     (b) Notwithstanding any termination of this Agreement, the indemnities to which the
Administrative Agent and the Lenders are entitled under the provisions of this Article XIV
and any other provision of this Agreement and the other Loan Documents shall continue in full force
and effect and shall protect the Administrative Agent and the Lenders against events and
circumstances arising after such termination as well as before.

     SECTION 14.15 Titles and Captions. Titles and captions of Articles, Sections and
subsections in, and the table of contents of, this Agreement are for convenience only, and neither
limit nor amplify the provisions of this Agreement.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 97

 

 

     SECTION 14.16 Severability of Provisions. Any provision of this Agreement or any
other Loan Document which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without
invalidating the remainder of such provision or the remaining provisions hereof or thereof or
affecting the validity or enforceability of such provision in any other jurisdiction.

     SECTION 14.17 Counterparts; Integration; Effectiveness; Electronic Execution.

     (a) Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
Delivery of an executed signature page of this Agreement by facsimile or electronic transmission
shall be effective as delivery of a manually executed counterparty hereof. This Agreement and the
other Loan Documents, and any separate letter agreements with respect to fees payable to the
Administrative Agent, constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. In the event of any conflict between the provisions of this
Agreement and those of any other Loan Document, the provisions of this Agreement shall control;
provided that the inclusion of supplemental rights or remedies in favor of the
Administrative Agent or the Lenders in any other Loan Document shall not be deemed a conflict with
this Agreement. Each Loan Document was drafted with the joint participation of the respective
parties thereto and shall be construed neither against nor in favor of any party, but rather in
accordance with the fair meaning thereof. Except as provided in Section 6.1, this
Agreement shall become effective when it shall have been executed by the Administrative Agent and
when the Administrative Agent shall have received counterparts hereof that, when taken together,
bear the signatures of each of the other parties hereto.

     (b) Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable law, including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

     SECTION 14.18 Term of Agreement. This Agreement shall remain in effect from the
Closing Date through and including the date upon which all Obligations (other than (a) contingent
indemnification obligations not then due and (b) the Specified Obligations) arising hereunder or
under any other Loan Document shall have been indefeasibly and irrevocably paid and satisfied in
full and the Revolving Credit Commitment and all other Commitments have been terminated. No
termination of this Agreement shall affect the rights and obligations of the parties hereto arising
prior to such termination or in respect of any provision of this Agreement which survives such
termination.

     SECTION 14.19 USA Patriot Act. The Administrative Agent and each Lender hereby
notifies the Borrowers and the other Credit Parties that pursuant to the requirements of the Act,
it is required to obtain, verify and record information that identifies the Borrowers and the other
Credit Parties, which information includes the name and address of each Borrower and Guarantor and
other information that will allow such Lender to identify such Borrower or Guarantor in accordance
with the Act.

AMENDED AND RESTATED CREDIT AGREEMENT — Page 98

 

 

     SECTION 14.20 [Intentionally omitted.]

     SECTION 14.21 Independent Effect of Covenants. Each of the Borrowers and the other
Credit Parties expressly acknowledges and agrees that each covenant contained in Article
VIII, IX, X or XI hereof shall be given independent effect.
Accordingly, each of the Borrowers and the other Credit Parties shall not engage in any transaction
or other act otherwise permitted under any covenant contained in Article VIII, IX,
X or XI if, before or after giving effect to such transaction or act, any Borrower
or such other Credit Party shall or would be in breach of any other covenant contained in
Article VIII, IX, X or XI.

     SECTION 14.22 Amendment and Restatement; No Novation. This Agreement constitutes an
amendment and restatement of the Existing Credit Agreement, as amended, effective from and after
the Closing Date. The execution and delivery of this Agreement shall not constitute a novation of
any indebtedness or other obligations owing to the Lenders or the Administrative Agent under the
Existing Credit Agreement based on facts, events or circumstances occurring or existing prior to
the execution and delivery of this Agreement. On the Closing Date, the credit facilities described
in the Existing Credit Agreement, as amended, shall be amended, supplemented, modified and restated
in their entirety by the credit facilities described herein, and all loans and other obligations of
Southwest outstanding as of such date under the Existing Credit Agreement, as amended, shall be
deemed to be loans and obligations outstanding under the corresponding facilities described herein,
without any further action by any Person, except that the Refinancing Term Loan shall be used to
refinance the Existing Term Loan and the Administrative Agent shall make such transfers of funds as
are necessary in order to effectuate the intent of this Agreement.

     SECTION 14.23 Inconsistencies with Other Documents. In the event there is a conflict
or inconsistency between this Agreement and any other Loan Document, the terms of this Agreement
shall control; provided that any provision of the Security Documents which imposes
additional burdens on any Borrower or any other Credit Party or further restricts the rights of any
Borrower or any other Credit Party or gives the Administrative Agent or Lenders additional rights
shall not be deemed to be in conflict or inconsistent with this Agreement and shall be given full
force and effect.

[Signature pages to follow]

AMENDED AND RESTATED CREDIT AGREEMENT — Page 99

 

 

     IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by its
duly authorized officer(s), all as of the day and year first written above.

	 	 	 	 	 
	 	THE BORROWERS:

SOUTHWEST CONVENIENCE STORES, LLC,
 as a Borrower
and a Credit Party

 	 
	 	By:  	/s/ Michael Oster	 
	 	 	Name:  	Michael Oster 	 
	 	 	Title:  	Vice President 	 
	 
	 	SKINNY’S, LLC, as a Borrower and a Credit Party

 	 
	 	By:  	/s/ Michael Oster	 
	 	 	Name:  	Michael Oster 	 
	 	 	Title:  	Vice President 	 
	 
	 	THE SUBSIDIARY GUARANTOR:

GTS LICENSING COMPANY, INC., 
as a Subsidiary
Guarantor and a Credit Party

 	 
	 	By:  	/s/ Michael Oster	 
	 	 	Name:  	Michael Oster 	 
	 	 	Title:  	Vice President 	 

AMENDED AND RESTATED CREDIT AGREEMENT — Page 100

 

 

	 	 	 	 	 
	 	THE ADMINISTRATIVE AGENT AND THE 
LENDERS:

WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as the
Administrative Agent, the Swingline Lender, the

Issuing Lender and a Lender

 
	 	By:  	/s/ Clint Bryant	 
	 	 	Name:  	Clint Bryant 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	BANK LEUMI USA, as a Lender

 	 
	 	By:  	/s/ Noam
Katz	 
	 	 	Name:  	Noam
Katz 	 
	 	 	Title:  	AT 	 
	 
	 	By:  	/s/ Michela
Klein	 
	 	 	Name:  	Michela
Klein 	 
	 	 	Title:  	SVP 	 

AMENDED AND RESTATED CREDIT AGREEMENT — Page 101Exhibit 10.1

EXHIBIT 10.1

LINDSAY CORPORATION

MANAGEMENT INCENTIVE PLAN (MIP)

2011 Plan Year

CEO Signature / Date

 

 

 

Table of Contents

	 	 	 	 	 
	1. Purpose
	 	 	2	 
	 
	 	 	 	 
	2. Definitions
	 	 	2	 
	 
	 	 	 	 
	3. Effective Date
	 	 	2	 
	 
	 	 	 	 
	4. Eligibility for Participation
	 	 	2	 
	 
	 	 	 	 
	5. Enrollment in the Plan
	 	 	3	 
	 
	 	 	 	 
	6. Determination of Target Payout Levels
	 	 	3&4	 
	 
	 	 	 	 
	7. Basis of Awards
	 	 	4&5	 
	 
	 	 	 	 
	8. Changes in Employment Status
	 	 	6	 
	 
	 	 	 	 
	9. Administration
	 	 	6	 
	 
	 	 	 	 
	10. Attachments
	 	 	7	 

 

 

 

	1.	 	Purpose

The purpose of the Management Incentive Plan (the “Plan”) is to:

	 	•	 	Encourage performance consistent with the Company’s business strategy.

	 	•	 	Focus on near-term performance results as well as progress toward the achievement of
long-term objectives.

	 	•	 	Strengthen the link between performance and pay by delivering awards based on
measurable corporate and individual goals.

	2.	 	Definitions

The terms used in this Plan have the meanings set forth below.

	 	A.	 	“Company” shall mean Lindsay Corporation.

	 	B.	 	“Compensation Committee” shall mean the Compensation Committee of the Company’s
Board of Directors.

	 	C.	 	“Financial Performance Component” shall mean the portion of a Participant’s
Plan award that is based on the Company’s and specific Market financial performance as
defined in Section 7B.

	 	D.	 	“Individual Performance Component” shall mean the portion of a Participant’s
Plan award that is based on a Participant’s performance relative to individual
objectives established in accordance with Section 7C.

	 	E.	 	“Named Executive Officers” shall mean the executives of the Company listed in
the Executive Compensation section of the Company’s Proxy Statement, other executive
officers of the Company for SEC reporting purposes and any other elected officers.

	 	F.	 	“Participant” shall mean a key employee eligible for awards under the terms
outlined in Section 4 of this Plan.

	 	G.	 	“Plan” shall mean Lindsay Corporation Management Incentive Plan.

	3.	 	Effective Date

The Plan shall be effective as of September 1, 2010 and will be in effect for the 2011 bonus
year. The 2011 bonus year is defined as September 1, 2010 through August 31, 2011.

	4.	 	Eligibility for Participation

	 	A.	 	Participation in the Plan is limited to individuals in positions which have
significant responsibility for and impact on the Company’s corporate performance.

	 	B.	 	Only the Chief Executive Officer and those employees in grades H through I are
eligible to be considered for participation in the Plan.

	 	C.	 	Participation in the Plan does not guarantee or entitle any employee to
participate in any bonus plan enacted in the future. Participation in the Plan at any
target bonus level does not guarantee or entitle any employee to be eligible to
participate at any similar target bonus level in any bonus plan which may be enacted in
the future.

 

- 2 -

 

	5.	 	Enrollment in the Plan

	 	A.	 	Initial Enrollment

At the beginning of the Plan year, each Participant must be enrolled in the Plan subject to
the approvals and eligibility criteria set forth in Sections 4 and 6. The enrollment process
is as follows:

	 	i.	 	Plan Participants will participate in the Plan at the standard
target percent per grade level as listed in Section 6.

	 	ii.	 	The Company’s Chief Executive Officer will review the participant
list and projected bonus costs of enrolled employees with the Compensation
Committee. The Compensation Committee provides final approval on the aggregate
potential cost of the Plan.

	 	B.	 	Mid-year Enrollment

When hiring or promoting employees during the Plan year who may be eligible for
participation in the Plan, the following procedures must be followed:

	 	i.	 	Prior to the commencement of the recruiting or promotion process,
the hiring manager consults with Human Resources to determine the position’s
eligibility for participation in the Plan and the recommended target bonus
amount.

	 	ii.	 	Offer letters indicating bonus Plan participation and target
bonus award opportunities to new hires and/or promoted employees must be
reviewed by the CEO or, in the case of a Named Executive Officer, by the
Compensation Committee. Target bonus recommendations must be approved before
communication to a prospective Participant. Generally, employees hired or
promoted during the fourth quarter 2011 are not eligible to participate in the
2011 Plan.

	6.	 	Determination of Target Payout Levels

	 	A.	 	Incentive awards will be calculated as a percentage of the Participant’s annual
base salary received during the Plan year, provided that annual base salary increases
which are made during the first quarter of the Plan year will be treated for purposes
of calculating a Participant’s bonus as if they had been made at the beginning of the
Plan year. While award amounts will vary based on the range of award opportunity and
an assessment of individual performance results, the target award opportunities for
each grade level are shown below:

	 	 	 	 	 
	Grade	 	Target % of Salary	 
	CEO
	 	 	60	%
	I
	 	 	45	%
	H
	 	 	35	%

 

- 3 -

 

	 	i.	 	Actual participation is subject to approval by the CEO and by the
Compensation Committee. Actual participation is based on an assessment of the
individual’s position impact on the organization.

	 	ii.	 	Standard target percents per grade level should be followed for
all Plan Participants.

	 	B.	 	If a Participant’s Plan target award opportunity (Target % of Salary as set
forth above) changes due to promotion into a grade level with a higher target bonus,
the Participant’s bonus will be calculated based on his or her annual salary during the
Plan year and a pro-rated bonus award. The pro-rated bonus award will reflect the
portion of the Plan year spent in each grade level (e.g., seven months at 35% and five
months at 45%). In evaluating the performance of Participants who change positions
during the Plan year, consideration will be given to the length of time and results in
each position. Actual award decisions will be made by the CEO or, in the case of a
Named Executive Officer, by the Compensation Committee. Generally, fourth quarter
promotions will not result in an increase in a Participant’s target award opportunity.

	 	C.	 	Examples of various award calculations are included with this Plan document as
Attachment A.

	 	D.	 	The CEO will review and approve award recommendations for all employees other
than Named Executive Officers prior to payout. Final approval authority for all
payments (except for award payments to the Named Executive Officers) rests with the
CEO. Individual award payments for all Participants (except the Named Executive
Officers) may be adjusted at any time and for any reason at the discretion of the CEO.

	 	E.	 	The Compensation Committee will determine the award payments to the Named
Executive Officers.

	 	F.	 	Award payments will be calculated on an annual basis and paid in accordance
with the Company’s normal payroll cycle. Payments will be made during the first
quarter following the Plan year. The payment date may be changed at any time and for
any reason at the discretion of the CEO, or in the case of a Named Executive Officer,
with approval of the Compensation Committee, but may not be later than March 15
following the end of the Plan year for which the award is paid.

	7.	 	Basis of Awards

	 	A.	 	Measurable performance objectives for each Plan Participant will be established
at the beginning of the Plan year (or at mid-year for mid-year hires or newly eligible
employees). In 2011, consideration will be given to:

	 	i.	 	Financial Performance Component: Company and Market financial
performance vs. Plan performance objectives in accordance with Section 7B.

	 	ii.	 	Individual Performance Component: Participant’s performance
relative to individual goals established in accordance with Section 7C.

	 	iii.	 	Individual and Financial Performance Components will be added to
reach a Participant’s total bonus. The relative weighting will vary by grade in
accordance with the following schedule:

	 	 	 	 	 	 	 	 	 
	 	 	Financial	 	 	Individual	 
	Grade	 	Performance	 	 	Performance	 
	CEO
	 	 	80	%	 	 	20	%
	I
	 	 	80	%	 	 	20	%
	H
	 	 	80	%	 	 	20	%

 

- 4 -

 

	 	B.	 	At the beginning of the Plan year, the objectives for the Financial Performance
Component are identified and approved by the Compensation Committee.

	 	i.	 	Recommended award amounts may range from 0 — 200% of the
Financial Performance Component of the Participant’s target award, based on
performance.

	 	ii.	 	Percentages between the threshold, intermediate, target, and
maximum award will be interpolated.

	 	iii.	 	In the event of an acquisition, revenue, operating income,
expenses, fees, assets, liabilities and acquisition fees resulting from the
acquisition will be excluded from award payout calculations, unless the
Compensation Committee approves a modification to include any such items.

	 	C.	 	The Individual Performance Component will be based on written objectives set
annually for Participants by their supervisors and approved by the CEO or, in the case
of a Named Executive Officer, by the Compensation Committee. Objectives will be based
on the Participant’s position and may be financial, operational or strategic.

	 	i.	 	Objectives under the Individual Performance Component may be
linked to team-based goals, if appropriate

	 	ii.	 	Examples of appropriate objectives under the Individual Performance Component include:

	 	•	 	Safety

	 	•	 	Customer Service

	 	•	 	Market Share

	 	•	 	On-time Delivery

	 	•	 	Cost Reduction

	 	•	 	Product Development

	 	iii.	 	Recommended award amounts may range from 0% — 200% of the target
amount under the Individual Performance Component. Recommended award amounts
will be based on an assessment of the individual’s performance relative to
objectives established under the Individual Performance Component, in accordance
with the following guidelines:

	 	 	 	 	 
	 	 	Payout	 
	Individual	 	(as % of Target Individual	 
	Performance	 	Performance Component)	 
	Does not meet objectives
	 	 	0	%
	Meets some objectives
	 	 	50	%
	Meets most objectives
	 	 	75	%
	Meets all objectives
	 	 	100	%
	Exceeds objectives
	 	 	150	%
	Significantly exceeds objectives
	 	 	200	%

	 	iv.	 	The “Payout (as % of Target Individual Performance Component)”
represents the payout relative to target award for the Individual Performance
Component of the Plan.

 

- 5 -

 

	8.	 	Changes in Employment Status

	 	A.	 	Under most circumstances, Participants who cease to be employees of the Company
during the Plan year or after the Plan year but prior to the date of actual payment
will receive no award. Only active employees on the date that the bonus is paid will
be eligible to receive an award. Any exceptions will require the approval of the CEO,
or in the case of a Named Executive Officer, the Compensation Committee.

	 	B.	 	In the event that a Participant transfers out of an eligible position into an
ineligible position within the Company, the employee may be eligible for a prorated
bonus award based upon the approval of the CEO, or in the case of a Named Executive
Officer, the Compensation Committee.

	 	C.	 	In all cases awards will be calculated and paid according to the provisions in
Sections 6 and 7 of this Plan document.

	9.	 	Administration

	 	A.	 	General authority for Plan administration and responsibility for ongoing Plan
administration will rest with the Compensation Committee of the Company’s Board of
Directors. The Compensation Committee has sole authority for decisions regarding
interpretation of the terms of this Plan.

	 	B.	 	This plan is being adopted pursuant to and shall be subject to the terms of the
Management Incentive Umbrella Plan as approved by stockholders on January 26, 2009.

	 	C.	 	The Company reserves the right to amend or change the Plan in whole or in part
at any time during the Plan year. Amendments to the Plan require the approval of the
Compensation Committee.

	 	D.	 	Participation in the Plan does not constitute a contract of employment nor a
contractual agreement of payment. It shall not affect the right of the Company to
discharge, transfer, or change the position of a Participant. The Plan shall not be
construed to limit or prevent the Company from adopting or changing, from time to time,
any rules, standards or procedures affecting the Participant’s employment with the
Company or any Company affiliate, including those which affect bonus payouts.

	 	E.	 	If any provision of this Plan is found to be illegal, invalid or unenforceable
under present or future laws, that provision shall be severed from the Plan. If such a
provision is severed, this Plan shall be construed and enforced as if the severed
provision had never been part of it and the remaining provisions of this Plan shall
remain in full force and effect and shall not be affected by the severed provisions or
by its severance from this Plan. In place of any severed provision there shall be
added automatically as part of this Plan a provision as similar in terms to the severed
provision as may be possible and be legal, valid and enforceable.

	 	F.	 	This is not an ERISA plan. This is a bonus program.

 

- 6 -

 

ATTACHMENT A

Award Calculation Guidelines

The following examples are to be used as guidelines in calculating bonus awards at the end of the
2011 Plan year. Managers should use their discretion in calculating actual bonus awards and may
consider exceptions to the calculations below when necessary. Any such exceptions must be fully
documented and are subject to review and approval by the Chief Executive Officer, or in the case of
a Named Executive Officer, the Compensation Committee.

Full Year Participation

	 	 	 	 	 
	Individual Score:
	 	 	100	 
	Financial Performance Score:
	 	 	100.00	%
	 
	 	 	 	 
	Individual Score
	 	 	100	 
	Total Incentive Plan %
	 	 	35.0	%
	% Objectives to Total Incentive Plan Participation
	 	 	20	%
	Base Salary
	 	$	150,000	 
	 
	 	 	 
	Objective Performance Payout
	 	$	10,500	 
	 
	 	 	 
	 
	 	 	 	 
	Financial Score
	 	 	100	%
	Total Incentive Plan %
	 	 	35	%
	% Financial to Total Incentive Plan Participation
	 	 	80	%
	Base Salary
	 	$	150,000	 
	 
	 	 	 
	Financial Performance Payout
	 	$	42,000	 
	 
	 	 	 
	Incentive Amount
	 	$	52,500	 
	 
	 	 	 
	Time Period (Months)
	 	 	12	 
	Proration Factor
	 	 	1	 
	Prorated Payout for Time Period
	 	$	52,500	 

Partial Year Participation

	 	 	 	 	 
	Individual Score:
	 	 	100	 
	Financial Performance Score:
	 	 	100.00	%
	 
	 	 	 	 
	Individual Score
	 	 	100	 
	Total Incentive Plan %
	 	 	35.0	%
	% Objectives to Total Incentive Plan Participation
	 	 	20	%
	Base Salary
	 	$	150,000	 
	 
	 	 	 
	Objective Performance Payout
	 	$	10,500	 
	 
	 	 	 
	 
	 	 	 	 
	Financial Score
	 	 	100	%
	Total Incentive Plan %
	 	 	35	%
	% Financial to Total Incentive Plan Participation
	 	 	80	%
	Base Salary
	 	$	150,000	 
	 
	 	 	 
	Financial Performance Payout
	 	$	42,000	 
	 
	 	 	 
	Incentive Amount
	 	$	52,500	 
	 
	 	 	 
	Time Period (Months)
	 	 	7	 
	Proration Factor
	 	 	0.583333	 
	Prorated Payout for Time Period
	 	$	30,625	 

Mid-Year Promotion

	 	 	 	 	 
	Individual Score:
	 	 	100	 
	Financial Performance Score:
	 	 	100.00	%
	 
	 	 	 	 
	Pre-Promotion Calculation
	 	 	 	 
	 
	 	 	 	 
	Individual Score
	 	 	100	 
	Total Incentive Plan %
	 	 	35.0	%
	% Objectives to Total Incentive Plan Participation
	 	 	20	%
	Base Salary
	 	$	150,000	 
	 
	 	 	 
	Objective Performance Payout
	 	$	10,500	 
	 
	 	 	 
	 
	 	 	 	 
	Financial Score
	 	 	100	%
	Total Incentive Plan %
	 	 	35	%
	% Financial to Total Incentive Plan Participation
	 	 	80	%
	Base Salary
	 	$	150,000	 
	 
	 	 	 
	Financial Performance Payout
	 	$	42,000	 
	 
	 	 	 
	Incentive Amount
	 	$	52,500	 
	 
	 	 	 
	Time Period (Months)
	 	 	6	 
	Proration Factor
	 	 	0.5	 
	Prorated Payout for Time Period
	 	$	26,250	 
	 
	 	 	 	 
	Post Promotion Calculation
	 	 	 	 
	 
	 	 	 	 
	Individual Score
	 	 	100	 
	Total Incentive Plan %
	 	 	45.0	%
	% Objectives to Total Incentive Plan Participation
	 	 	20	%
	Base Salary
	 	$	200,000	 
	 
	 	 	 
	Objective Performance Payout
	 	$	18,000	 
	 
	 	 	 
	 
	 	 	 	 
	Financial Score
	 	 	100	%
	Total Incentive Plan %
	 	 	45	%
	% Financial to Total Incentive Plan Participation
	 	 	80	%
	Base Salary
	 	$	200,000	 
	 
	 	 	 
	Total Financial Performance Payout
	 	$	72,000	 
	 
	 	 	 
	Incentive Amount
	 	$	90,000	 
	 
	 	 	 
	Time Period (Months)
	 	 	6	 
	Proration Factor
	 	 	0.5	 
	Prorated Payout for Time Period
	 	$	45,000	 
	 
	 	 	 	 
	Total Prorated Incentive Amount
	 	$	71,250	 

 

- 7 -

 

“The Financial Performance Component Elements for Fiscal Year 2011 constitutes confidential
information and has been omitted from this filing. This appendix has been filed separately with
the Securities and Exchange Commission.”

 

- 8 -

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