Document:

exv10w1

 

Exhibit 10.1

EXECUTION COPY

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

DATED AS OF MAY 11, 2007

AMONG

TESORO CORPORATION,

AS BORROWER

THE FINANCIAL INSTITUTIONS FROM TIME TO TIME PARTIES HERETO,

AS LENDERS

LEHMAN COMMERCIAL PAPER INC.,

AS SYNDICATION AGENT

BANK OF AMERICA, N.A., THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,

FORTIS CAPITAL CORP. and THE ROYAL BANK OF SCOTLAND plc,

AS CO-DOCUMENTATION AGENTS

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

AS COLLATERAL AGENT

AND

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

AS ADMINISTRATIVE AGENT

 

J.P. MORGAN SECURITIES INC. and LEHMAN BROTHERS INC.,

AS JOINT LEAD ARRANGERS AND JOINT BOOK RUNNERS

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	1.1. Certain Defined Terms
	 	 	1	 
	1.2. Plural Forms
	 	 	29	 
	 
	 	 	 	 
	ARTICLE II THE CREDITS
	 	 	29	 
	 
	 	 	 	 
	2.1. Commitments; Loans
	 	 	29	 
	2.2. Required Payments; Termination
	 	 	30	 
	2.3. Ratable Loans; Types of Advances
	 	 	31	 
	2.4. Commitment Fee; Aggregate Revolving Loan Commitment
	 	 	32	 
	2.5. Minimum Amount of Each Advance
	 	 	32	 
	2.6. Optional Principal Payments
	 	 	32	 
	2.7. Method of Selecting Types and Interest Periods for New Advances
	 	 	33	 
	2.8. Conversion and Continuation of Outstanding Advances; No Conversion or Continuation of
Eurodollar Advances
After Default
	 	 	33	 
	2.9. Changes in Interest Rate, etc.
	 	 	34	 
	2.10. Rates Applicable After Default
	 	 	34	 
	2.11. Method of Payment; Settlement
	 	 	34	 
	2.12. Noteless Agreement; Evidence of Indebtedness
	 	 	37	 
	2.13. Telephonic Notices
	 	 	38	 
	2.14. Payments of Interest
	 	 	38	 
	2.15. Notification of Advances, Interest Rates, Prepayments and Revolving Loan Commitment Reductions;
Availability of Loans
	 	 	40	 
	2.16. Lending Installations
	 	 	40	 
	2.17. Non-Receipt of Funds by the Agent
	 	 	40	 
	2.18. Replacement of Lender
	 	 	41	 
	2.19. Facility LCs
	 	 	41	 
	2.20. Increase of Aggregate Revolving Loan Commitment
	 	 	46	 
	 
	 	 	 	 
	ARTICLE III YIELD PROTECTION; TAXES
	 	 	47	 
	 
	 	 	 	 
	3.1. Yield Protection
	 	 	47	 
	3.2. Changes in Capital Adequacy Regulations
	 	 	48	 
	3.3. Availability of Types of Advances
	 	 	48	 
	3.4. Funding Indemnification
	 	 	48	 
	3.5. Taxes
	 	 	49	 
	3.6. Lender Statements; Survival of Indemnity
	 	 	51	 
	3.7. Alternative Lending Installation
	 	 	51	 
	 
	 	 	 	 
	ARTICLE IV CONDITIONS PRECEDENT
	 	 	51	 
	 
	 	 	 	 
	4.1. Effectiveness of Revolving Loan Commitments
	 	 	51	 
	4.2. Each Credit Extension
	 	 	53	 

i

 

	 	 	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES
	 	 	53	 
	 
	 	 	 	 
	5.1. Existence and Standing
	 	 	53	 
	5.2. Authorization and Validity
	 	 	54	 
	5.3. No Conflict; Government Consent
	 	 	54	 
	5.4. Financial Statements
	 	 	54	 
	5.5. Material Adverse Change
	 	 	54	 
	5.6. Taxes
	 	 	55	 
	5.7. Litigation and Contingent Obligations
	 	 	55	 
	5.8. Subsidiaries
	 	 	55	 
	5.9. ERISA
	 	 	55	 
	5.10. Accuracy of Information
	 	 	55	 
	5.11. Regulation U
	 	 	55	 
	5.12. Material Agreements
	 	 	56	 
	5.13. Compliance With Laws
	 	 	56	 
	5.14. Ownership of Properties
	 	 	56	 
	5.15. Plan Assets; Prohibited Transactions
	 	 	56	 
	5.16. Environmental Matters
	 	 	56	 
	5.17. Investment Company Act
	 	 	56	 
	5.18. Insurance
	 	 	56	 
	5.19. No Default or Unmatured Default
	 	 	57	 
	 
	 	 	 	 
	ARTICLE VI COVENANTS
	 	 	57	 
	 
	 	 	 	 
	6.1. Financial Reporting
	 	 	57	 
	6.2. Use of Proceeds
	 	 	60	 
	6.3. Notice of Default
	 	 	60	 
	6.4. Conduct of Business
	 	 	60	 
	6.5. Taxes
	 	 	60	 
	6.6. Insurance
	 	 	60	 
	6.7. Compliance with Laws
	 	 	61	 
	6.8. Maintenance of Properties
	 	 	61	 
	6.9. Inspection; Keeping of Books and Records
	 	 	61	 
	6.10. Restricted Payments
	 	 	61	 
	6.11. Merger
	 	 	62	 
	6.12. Sale of Assets
	 	 	62	 
	6.13. Investments and Acquisitions
	 	 	63	 
	6.14. Indebtedness
	 	 	64	 
	6.15. Liens
	 	 	64	 
	6.16. Affiliates
	 	 	67	 
	6.17. Financial Contracts
	 	 	67	 
	6.18. Subsidiary Covenants
	 	 	67	 
	6.19. Contingent Obligations
	 	 	67	 
	6.20. [Intentionally Omitted]
	 	 	67	 
	6.21. Fixed Charge Coverage Ratio
	 	 	68	 
	6.22. Minimum Consolidated Tangible Net Worth
	 	 	68	 
	6.23. Subsidiary Collateral Documents; Subsidiary Guarantors
	 	 	68	 

ii

 

	 	 	 	 	 
	6.24. Insurance Proceeds
	 	 	69	 
	6.25. Collection Accounts
	 	 	69	 
	6.26. Repayment of Indebtedness
	 	 	69	 
	6.27. Multiemployer Plans
	 	 	70	 
	 
	 	 	 	 
	ARTICLE VII DEFAULTS
	 	 	70	 
	 
	 	 	 	 
	ARTICLE VIII ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES
	 	 	73	 
	 
	 	 	 	 
	8.1. Acceleration
	 	 	73	 
	8.2. Amendments
	 	 	74	 
	8.3. Preservation of Rights
	 	 	75	 
	 
	 	 	 	 
	ARTICLE IX GENERAL PROVISIONS
	 	 	75	 
	 
	 	 	 	 
	9.1. Survival of Representations
	 	 	75	 
	9.2. Governmental Regulation
	 	 	75	 
	9.3. Headings
	 	 	75	 
	9.4. Entire Agreement
	 	 	75	 
	9.5. Several Obligations; Benefits of this Agreement
	 	 	76	 
	9.6. Expenses; Indemnification
	 	 	76	 
	9.7. Numbers of Documents
	 	 	77	 
	9.8. Accounting
	 	 	77	 
	9.9. Severability of Provisions
	 	 	77	 
	9.10. Nonliability of Lenders
	 	 	77	 
	9.11. Confidentiality
	 	 	78	 
	9.12. Lenders Not Utilizing Plan Assets
	 	 	78	 
	9.13. Nonreliance
	 	 	78	 
	9.14. Disclosure
	 	 	78	 
	9.15. Performance of Obligations
	 	 	78	 
	9.16. Partial Guaranty Release
	 	 	79	 
	9.17. Subordination of Intercompany Indebtedness
	 	 	79	 
	9.18. Certifications Regarding Indentures
	 	 	80	 
	9.19. Co-Agents
	 	 	81	 
	 
	 	 	 	 
	ARTICLE X THE AGENT
	 	 	81	 
	 
	 	 	 	 
	10.1. Appointment; Nature of Relationship
	 	 	81	 
	10.2. Powers
	 	 	81	 
	10.3. General Immunity
	 	 	82	 
	10.4. No Responsibility for Loans, Recitals, etc.
	 	 	82	 
	10.5. Action on Instructions of Lenders
	 	 	82	 
	10.6. Employment of Agents and Counsel
	 	 	82	 
	10.7. Reliance on Documents; Counsel
	 	 	83	 
	10.8. Agent’s Reimbursement and Indemnification
	 	 	83	 
	10.9. Notice of Default
	 	 	83	 
	10.10. Rights as a Lender
	 	 	83	 

iii

 

	 	 	 	 	 
	10.11. Lender Credit Decision
	 	 	84	 
	10.12. Successor Agent
	 	 	84	 
	10.13. Agent and Arrangers Fees
	 	 	84	 
	10.14. Delegation to Affiliates
	 	 	84	 
	10.15. Collateral Documents
	 	 	85	 
	10.16. Exercise of Certain Remedies
	 	 	85	 
	 
	 	 	 	 
	ARTICLE XI SETOFF; RATABLE PAYMENTS
	 	 	86	 
	11.1. Setoff
	 	 	86	 
	11.2. Ratable Payments
	 	 	86	 
	11.3. Application of Payments
	 	 	86	 
	 
	 	 	 	 
	ARTICLE XII BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS
	 	 	87	 
	 
	 	 	 	 
	12.1. Successors and Assigns; Designated Lenders
	 	 	87	 
	12.2. Participations
	 	 	89	 
	12.3. Assignments
	 	 	90	 
	12.4. Dissemination of Information
	 	 	91	 
	12.5. Tax Certifications
	 	 	92	 
	 
	 	 	 	 
	ARTICLE XIII NOTICES
	 	 	92	 
	 
	 	 	 	 
	13.1. Notices
	 	 	92	 
	13.2. Change of Address
	 	 	92	 
	 
	 	 	 	 
	ARTICLE XIV COUNTERPARTS
	 	 	92	 
	 
	 	 	 	 
	ARTICLE XV CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL
	 	 	92	 
	 
	 	 	 	 
	ARTICLE XVI PRIOR CREDIT AGREEMENT
	 	 	94	 
	 
	 	 	 	 
	ARTICLE XVII USA PATRIOT ACT NOTIFICATION
	 	 	94	 

iv

 

SCHEDULES

Commitment Schedule

Pricing Schedule

	 	 	 	 	 
	Schedule 1.1

	 	-
	 	Eligible Carriers
	 
	 	 	 	 
	Schedule 2.19.1

	 	-
	 	Letters of Credit Issued Under Prior Credit Agreement
	 
	 	 	 	 
	Schedule 5.8

	 	-
	 	Subsidiaries
	 
	 	 	 	 
	Schedule 5.9

	 	 	 	ERISA
	 
	 	 	 	 
	Schedule 6.13

	 	-
	 	Investments
	 
	 	 	 	 
	Schedule 6.14

	 	-
	 	Indebtedness
	 
	 	 	 	 
	Schedule 6.15

	 	-
	 	Liens

EXHIBITS

	 	 	 	 	 
	Exhibit A

	 	-
	 	Form of Borrower’s Counsel’s Opinion
	 
	 	 	 	 
	Exhibit B

	 	-
	 	Form of Compliance Certificate
	 
	 	 	 	 
	Exhibit C

	 	-
	 	Form of Assignment and Assumption Agreement
	 
	 	 	 	 
	Exhibit D

	 	-
	 	Form of Loan/Credit Related Money Transfer Instruction
	 
	 	 	 	 
	Exhibit E

	 	-
	 	Form of Revolving Note (if requested)
	 
	 	 	 	 
	Exhibit F

	 	-
	 	Form of Designation Agreement
	 
	 	 	 	 
	Exhibit G

	 	-
	 	Form of Officer’s Certificate
	 
	 	 	 	 
	Exhibit H

	 	-
	 	List of Closing Documents
	 
	 	 	 	 
	Exhibit I

	 	-
	 	[Intentionally Omitted]
	 
	 	 	 	 
	Exhibit J-1

	 	-
	 	Form of Interim Collateral Report
	 
	 	 	 	 
	Exhibit J-2

	 	-
	 	Form of Monthly Collateral Report

v

 

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

     This Fourth Amended and Restated Credit Agreement, dated as of May 11, 2007, is entered into
by and among Tesoro Corporation, a Delaware corporation, the Lenders, the LC Issuers, and JPMorgan
Chase Bank, National Association, as Administrative Agent. The parties hereto agree as follows:

ARTICLE I

DEFINITIONS

     1.1. Certain Defined Terms. As used in this Agreement:

     “Accounting Changes” is defined in Section 9.8 hereof.

     “Account Debtor” means the account debtor or obligor with respect to any of the Receivables
and/or the prospective purchaser with respect to any contract right, and/or any party who enters
into or proposes to enter into any contract or other arrangement with the Borrower or any
Subsidiary.

     “Acquisition” means any transaction, or any series of related transactions, consummated on or
after the Closing Date, by which the Borrower or any of its Subsidiaries (i) acquires any going
business or all or substantially all of the assets of any firm, corporation or limited liability
company, or division thereof, whether through purchase of assets, merger or otherwise or (ii)
directly or indirectly acquires (in one transaction or as the most recent transaction in a series
of transactions) at least a majority (in number of votes) of the securities of a corporation which
have ordinary voting power for the election of directors (other than securities having such power
only by reason of the happening of a contingency) or a majority (by percentage of voting power) of
the outstanding ownership interests of a partnership or limited liability company of any Person.

     “Advance” means a borrowing hereunder consisting of the aggregate amount of several Loans (i)
made by some or all of the Lenders on the same Borrowing Date, or (ii) converted or continued by
the Lenders on the same date of conversion or continuation, consisting, in either case, of the
aggregate amount of the several Loans of the same Type and, in the case of Eurodollar Loans, for
the same Interest Period. The term “Advance” shall, unless otherwise indicated, include
Non-Ratable Loans and Collateral Protection Advances.

     “Affiliate” of any Person means any other Person directly or indirectly controlling,
controlled by or under common control with such Person. A Person shall be deemed to control
another Person if the controlling Person is the “beneficial owner” (as defined in Rule 13d-3 under
the Securities Exchange Act of 1934) of 10% or more of any class of voting securities (or other
ownership interests) of the controlled Person or possesses, directly or indirectly, the power to
direct or cause the direction of the management or policies of the controlled Person, whether
through ownership of voting securities, by contract or otherwise.

     “Agent” means JPMorgan in its capacity as contractual representative of the Lenders pursuant
to Article X, and not in its individual capacity as a Lender, as Administrative Agent, and any
successor Agent appointed pursuant to Article X.

 

     “Aggregate Outstanding Credit Exposure” means, at any time, the aggregate of the Outstanding
Credit Exposure of all the Lenders.

     “Aggregate Outstanding Revolving Loan Credit Exposure” means, at any time, the aggregate of
the Outstanding Revolving Loan Credit Exposures of all the Lenders.

     “Aggregate Revolving Loan Commitment” means the aggregate of the Revolving Loan Commitments of
all the Lenders, as increased or reduced from time to time pursuant to the terms hereof. The
Aggregate Revolving Loan Commitment as of the Closing Date is One Billion Seven Hundred Fifty
Million and 00/100 Dollars ($1,750,000,000).

     “Agreement” means this Fourth Amended and Restated Credit Agreement, as it may be amended,
restated, supplemented or otherwise modified and as in effect from time to time.

     “Agreement Accounting Principles” means US GAAP, applied in a manner consistent with that used
in preparing the financial statements of the Borrower referred to in Section 5.4; provided,
however, that except as provided in Section 9.8, with respect to the calculation of the
financial covenants set forth in Sections 6.21 and 6.22 (and the defined terms used in such
Sections), “Agreement Accounting Principles” means US GAAP as in effect in the United States as of
the Closing Date, applied in a manner consistent with that used in preparing the financial
statements of the Borrower referred to in Section 5.4 hereof.

     “Alternate Base Rate” means, for any day, a fluctuating rate of interest per annum equal to
the higher of (i) the Prime Rate for such day and (ii) the sum of (a) the Federal Funds Effective
Rate for such day and (b) one-half of one percent (0.5%) per annum.

     “Applicable Fee Rate” means, with respect to the Commitment Fee at any time, 0.25% per annum.

     “Applicable Margin” means, with respect to Advances of any Type at any time, the percentage
rate per annum which is applicable at such time with respect to Advances of such Type consisting of
Revolving Loans as set forth in the Pricing Schedule.

     “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.

     “Arrangers” means J.P. Morgan Securities Inc. and Lehman Brothers Inc., in their respective
capacities as the co-lead arrangers and joint bookrunners for the credit facilities evidenced by
this Agreement.

     “Article” means an article of this Agreement unless another document is specifically
referenced.

     “Assignment Agreement” is defined in Section 12.3.1.

2

 

     “Authorized Officer” means any of the chief executive officer, president, chief operating
officer, chief financial officer, treasurer, vice president-finance or vice president-controller of
the Borrower, acting singly.

     “Available Aggregate Revolving Loan Commitment” means, at any time, the lesser of (i) the
Aggregate Revolving Loan Commitment and (ii) the Borrowing Base then in effect, minus the Aggregate
Outstanding Revolving Loan Credit Exposure at such time.

     “Bank Products” means, with respect to any Lender, any of the following services provided to
the Borrower or an Affiliate thereof by any Lender or the Agent: (i) Rate Management Transactions,
(ii) commercial credit card services, (iii) cash management and other treasury management services
(including, without limitation, controlled disbursements, automated clearinghouse transactions,
return items, and interstate depository network services), and (iv) foreign exchange related
services.

     “Borrower” means Tesoro Corporation, a Delaware corporation, and its permitted successors and
assigns (including, without limitation, a debtor in possession on its behalf).

     “Borrowing Base” means, as of any date of calculation, an amount equal to the lesser of (x)
the Aggregate Revolving Loan Commitment, and (y) as set forth on the most current Interim
Collateral Report or Monthly Collateral Report, as applicable, delivered to the Agent, the
aggregate of (i) 100% of Perfected Cash Interests, plus (ii) eighty-five percent (85%) of the Gross
Amount of Eligible Receivables, plus (iii) eighty percent (80%) of the Gross Amount of Eligible
Petroleum Inventory, minus (iv) the Rental Reserve, minus (v) the Standard Reserve, and minus (vi)
such reserves as the Agent may from time to time reasonably deem appropriate; provided,
however, that the Agent, upon the occurrence and during the continuance of a Default, may,
in its reasonable discretion and without the Borrower’s consent, decrease the foregoing
percentages. For the avoidance of doubt, the assets purchased or otherwise acquired in connection
with the 2007 Acquisitions shall not be included in the Borrowing Base until the Agent shall have
completed all field examinations of such assets to the Agent’s satisfaction in respect of such
assets, such field examinations not to be unreasonably delayed.

     “Borrowing Date” means a date on which an Advance is made hereunder.

     “Borrowing Notice” is defined in Section 2.7.

     “Business Activity Report” means (A) a Notice of Business Activities Report filed with the
State of Minnesota, Department of Revenue or (B) any similar report required by any other State
relating to the ability of the Borrower or any Subsidiary Guarantor to enforce its Receivables
claims against Account Debtors located in any such state.

     “Business Day” means (i) with respect to any borrowing, payment or rate selection of
Eurodollar Advances, a day (other than a Saturday or Sunday) on which banks generally are open in
Chicago, Illinois and New York, New York for the conduct of substantially all of their commercial
lending activities, interbank wire transfers can be made on the Fedwire system and dealings in
Dollars are carried on in the London interbank market and (ii) for all other purposes, a day (other
than a Saturday or Sunday) on which banks generally are open in Chicago, Illinois

3

 

and New York, New York for the conduct of substantially all of their commercial lending
activities and interbank wire transfers can be made on the Fedwire system.

     “Capitalized Lease” of a Person means any lease of Property by such Person as lessee which
would be capitalized on a balance sheet of such Person prepared in accordance with Agreement
Accounting Principles.

     “Capitalized Lease Obligations” of a Person means the amount of the obligations of such Person
under Capitalized Leases which would be shown as a liability on a balance sheet of such Person
prepared in accordance with Agreement Accounting Principles.

     “Cash Equivalent Investments” means (i) short-term obligations of, or fully guaranteed by, the
United States of America, and the senior notes of government sponsored enterprises, (ii) commercial
paper rated A-1 or better by S&P or P-1 or better by Moody’s, (iii) demand deposit accounts
maintained in the ordinary course of business, (iv) certificates of deposit issued by and time
deposits with commercial banks (whether domestic or foreign) having capital and surplus in excess
of $100,000,000; provided in each case that the same provides for payment of both principal
and interest (and not principal alone or interest alone) and is not subject to any contingency
regarding the payment of principal or interest, (v) tax exempt, auction rate securities, and
variable rate demand notes which are AAA rated, (vi) money market mutual funds where total
investment does not exceed five percent of total assets, and (vii) repurchase agreements that are
collateralized by securities for direct investments.

     “Change in Control” means the occurrence of any of the following events: (i) there shall be
consummated (A) any consolidation or merger of the Borrower in which the Borrower is not the
continuing or surviving corporation or pursuant to which shares of the Borrower’s common stock
would be converted into cash, securities or other property, other than a merger of the Borrower
where a majority of the Board of Directors of the surviving corporation are, and for a two year
period after the merger continue to be, persons who were directors of the Borrower immediately
prior to such merger or were elected as directors, or nominated for election as directors, by a
vote of at least two-thirds of the directors then still in office who were directors of the
Borrower immediately prior to such merger, or (B) any sale, lease, exchange or transfer (in one
transaction or a series of transactions) of all or substantially all of the assets of the Borrower,
unless, immediately following such sale, lease, exchange or transfer, such assets are owned,
directly or indirectly, by the Borrower or one or more Subsidiaries of the Borrower; (ii) the
shareholders of the Borrower shall approve any plan or proposal for the liquidation or dissolution
of the Borrower; (iii) (A) any “person” as defined in the Securities Exchange Act of 1934 (the
“Exchange Act”), other than the Borrower or a Subsidiary or any employee benefit plan
sponsored by the Borrower or a Subsidiary, shall become the beneficial owner (within the meaning of
Rule 13d-3 under the Exchange Act) of securities of the Borrower representing 50% or more of the
combined voting power of the Borrower’s then outstanding securities ordinarily (and apart from
rights accruing in special circumstances) having the right to vote in the election of directors, as
a result of a tender or exchange offer, open market purchases, privately negotiated purchases or
otherwise, and (B) at any time during a period of two consecutive years thereafter, individuals who
immediately prior to the beginning of such period constituted the Board of Directors of the
Borrower shall cease for any reason to constitute at least a majority thereof, unless the election
or the nomination by the Board of Directors for election by the

4

 

Borrower’s shareholders of each new director during such period was approved by a vote of at
least two-thirds of the directors then still in office who were directors at the beginning of such
period; or (iv) a “Change of Control” or like event under any agreement, document or instrument
evidencing Material Indebtedness.

     “Closing Date” means May 11, 2007.

     “Co-Agent” means each of Lehman Commercial Paper Inc., as syndication agent, JPMorgan, as
administrative agent and collateral agent, and Bank of America, N.A., The Bank of Tokyo-Mitsubishi
UFJ, Ltd., Fortis Capital Corp. and The Royal Bank of Scotland plc, each in its capacity as
co-documentation agent, together with their respective successors and assigns.

     “Code” means the Internal Revenue Code of 1986, as amended, reformed or otherwise modified
from time to time, and any rule or regulation issued thereunder.

     “Collateral” means all property and interests in property now owned or hereafter acquired by
the Borrower or any of its Subsidiary Guarantors in or upon which a security interest or lien is
granted to the Agent, for the benefit of the Holders of Secured Obligations, or to the Agent, for
the benefit of the Lenders, whether under the Security Agreement, under any of the other Collateral
Documents or under any of the other Loan Documents.

     “Collateral Documents” means all agreements, instruments and documents executed in connection
with this Agreement that are intended to create or evidence Liens to secure the Secured
Obligations, including, without limitation, the Security Agreement and all other security
agreements, loan agreements, notes, guarantees, subordination agreements, pledges, warrants,
mortgages, charges, debentures, hypothecations, powers of attorney, consents, assignments,
contracts, fee letters, notices, leases, financing statements and all other written matter whether
heretofore, now, or hereafter executed by or on behalf of the Borrower or any of its Subsidiary
Guarantors and delivered to the Agent or any of the Lenders, together with all agreements and
documents referred to therein or contemplated thereby.

     “Collateral Protection Advance” is defined in Section 2.1.2.

     “Collateral Shortfall Amount” is defined in Section 8.1.

     “Collection Account” is defined in Section 6.25.

     “Commitment Fee” is defined in Section 2.4.1.

     “Commitment Schedule” means the Schedule identifying the Lenders’ respective Revolving Loan
Commitments, as attached hereto and identified as such.

     “Consolidated Capital Expenditures” means, for any period, with respect to the Borrower and
its Subsidiaries, the aggregate of all expenditures by the Borrower and its Subsidiaries for the
acquisition or leasing (pursuant to a Capitalized Lease) of fixed or capital assets or additions to
equipment (including replacements, capitalized repairs, and improvements during such period) which
are capitalized under Agreement Accounting Principles on the Borrower’s or any Subsidiary’s balance
sheet.

5

 

     “Consolidated EBITDA” means Consolidated Net Income plus, to the extent deducted from
revenues in determining Consolidated Net Income, (i) Consolidated Interest Expense, (ii) income and
franchise tax expense, (iii) depreciation, (iv) amortization and (v) any other non-cash charges,
minus, to the extent included in Consolidated Net Income, (i) interest income (except to
the extent deducted in determining Consolidated Interest Expense) and (ii) any other non-cash
income, all reported for the Borrower and its Subsidiaries on a consolidated basis.

     “Consolidated Interest Expense” means, with reference to any period, the accrued interest
expense of the Borrower and its Subsidiaries reported on a consolidated basis for such period,
including, without limitation, yield or any other financing costs resembling interest which are
payable under any Receivables Purchase Facility.

     “Consolidated Net Income” means, with reference to any period, the consolidated net earnings
(or loss) of the Borrower and its Subsidiaries reported for such period.

     “Consolidated Tangible Net Worth” means at any time, with respect to any Person, the
consolidated total stockholders’ equity of such Person and its Subsidiaries reported on a
consolidated basis in accordance with Agreement Accounting Principles and as reported in such
Person’s most recent Form 10-K or Form 10-Q filing, as applicable, with the U.S. Securities and
Exchange Commission, minus at all times all items that are reported in such Form 10-K or Form 10-Q
filing, as applicable, as “acquired intangibles net” and “goodwill.”

     “Contingent Obligation” of a Person means any agreement, undertaking or arrangement by which
such Person assumes, guarantees, endorses, contingently agrees to purchase or provide funds for the
payment of, or otherwise becomes or is contingently liable upon, the obligation or liability of any
other Person, or agrees to maintain the net worth or working capital or other financial condition
of any other Person, or otherwise assures any creditor of such other Person against loss;
provided, however, that amounts held or allocated as reserves for obligations
arising under or in connection with (i) any Plan or other pension fund related item, (ii)
litigation, judgments and legal proceedings, and (iii) compliance with Environmental Laws,
including, without limitation, the remediation of any environmental related issues with respect to
its Property, shall not constitute “Contingent Obligations.”

     “Continuing Director” means, with respect to any Person as of any date of determination, any
member of the board of directors of such Person who (i) was a member of such board of directors on
the Closing Date, or (ii) was nominated for election or elected to such board of directors with the
approval of the required majority of the Continuing Directors who were members of such board at the
time of such nomination or election; provided that any individual who is so elected or
nominated in connection with a merger, consolidation, acquisition or similar transaction shall not
be a Continuing Director unless such individual was a Continuing Director prior thereto.

     “Controlled Group” means all members of a controlled group of corporations or other business
entities and all trades or businesses (whether or not incorporated) under common control which,
together with the Borrower or any of its Subsidiaries, are treated as a single employer under
Section 414 of the Code.

6

 

     “Conversion/Continuation Notice” is defined in Section 2.8.

     “Credit Extension” means the making of an Advance or the issuance of a Facility LC.

     “Credit Extension Date” means the Borrowing Date for an Advance or the issuance date for a
Facility LC.

     “Current Petroleum Inventory Market Price” means, with respect to any Petroleum Inventory, the
market price for such Petroleum Inventory as set forth in a published or reported price index
maintained by a third-party that is not an Affiliate of the Borrower and that prepares such index
in the ordinary course of its business. Current Petroleum Inventory Market Price shall be
determined using published or reported price indices created or distributed by Oil Price
Information Service, commonly known as OPIS, and/or Platts Oilgram Price Report, commonly known as
Platts. In the event OPIS or Platts no longer provides the aforementioned price indices, or in the
event the Borrower and the Agent determine that either OPIS or Platts no longer accurately provides
pricing information for Petroleum Inventory, the Borrower and the Agent shall replace one or both
of the OPIS and Platts price indices, as applicable, with other third-party price indices
reasonably acceptable to each of the Borrower and the Agent.

     “Default” means an event described in Article VII.

     “Designated Lender” means, with respect to each Designating Lender, each Eligible Designee
designated by such Designating Lender pursuant to Section 12.1.2.

     “Designating Lender” means, with respect to each Designated Lender, the Lender that designated
such Designated Lender pursuant to Section 12.1.2.

     “Designation Agreement” is defined in Section 12.1.2.

     “Dollar”, “dollar” and “$” means the lawful currency of the United States of America.

     “Eligible Carrier” means any of the terminals, warehouses, carriers and pipeline companies
listed or described in Schedule 1.1 to this Agreement, as such Schedule 1.1 may be
revised by the Borrower from time to time with the consent of the Agent, such consent not to be
unreasonably withheld.

     “Eligible Designee” means a special purpose corporation, partnership, trust, limited
partnership or limited liability company that is administered by the respective Designating Lender
or an Affiliate of such Designating Lender and (i) is organized under the laws of the United States
of America or any state thereof, (ii) is engaged primarily in making, purchasing or otherwise
investing in commercial loans in the ordinary course of its business and (iii) issues (or the
parent of which issues) commercial paper rated at least A-1 or the equivalent thereof by S&P or P-1
or the equivalent thereof by Moody’s.

     “Eligible Petroleum Inventory” means Petroleum Inventory of the Borrower and the Subsidiary
Guarantors which is held for sale or lease or refining in the ordinary course of business or
furnished under any contract of service by the Borrower or such Subsidiary Guarantors in the
ordinary course of business which is at all times and shall continue to meet

7

 

standards of
eligibility from time to time established in accordance with this Agreement. Initially, standards
of eligibility will be established by the Agent in its reasonable credit judgment (which credit
judgment shall be exercised in a manner that is not arbitrary or capricious) and may be revised
from time to time by the Agent in its reasonable credit judgment (which credit judgment shall be
exercised in a manner that is not arbitrary or capricious). In general, without limiting the
foregoing, the following Petroleum Inventory includes Eligible Petroleum Inventory:

     (a) (i) Petroleum Inventory that is subject to a valid, first priority perfected lien and
security interest in favor of the Agent on behalf of the Holders of Secured Obligations;
provided, such Petroleum Inventory may be subject to one or more Specified Liens; or (ii)
Petroleum Inventory that has been delivered to an Eligible Carrier subject to a valid, first
priority perfected lien and security interest in favor of the Agent on behalf of the Holders of
Secured Obligations with UCC financing statements (or any other applicable form filings) perfecting
or continuing the perfection of the security interest of the Agent on behalf of the Holders of
Secured Obligations in such Petroleum Inventory having been duly filed where necessary and either
(x) no document of title is issued with respect to such Petroleum Inventory by such Eligible
Carrier, or (y) if a document of title is issued with respect to such Petroleum Inventory by such
Eligible Carrier, the original of such document of title is delivered to the Agent or its
designated bailee or agent; provided, such Petroleum Inventory may be subject to one or
more Specified Liens;

     (b) Petroleum Inventory that is in good saleable or usable condition, is not deteriorating in
quality and is not obsolete, and is of a quality which (in locations where sold by the Borrower) is
marketable at prevailing market prices for such products and meets all applicable governmental
regulations and standards at the place of intended sale,

     (c) Petroleum Inventory to which the Borrower or its Subsidiaries have title (provided all
documentation necessary to provide the Agent with a first priority, perfected Lien thereon shall be
in full force and effect); provided, such Petroleum Inventory may be subject to one or more
Specified Liens; or, in the case of Petroleum Inventory described in clause (ii) of paragraph (a)
above, the Borrower has the absolute and unconditional right to obtain such Petroleum Inventory or
Petroleum Inventory equivalent to such Petroleum Inventory from an Eligible Carrier, in each case,
free and clear of any and all Liens whatsoever, other than those (1) in favor of the Agent on
behalf of the Holders of Secured Obligations created pursuant to the Collateral Documents and (2)
those in favor of an Eligible Carrier that arise under applicable law or contract and for which
appropriate amounts have been allocated under the Rental Reserve; provided, such Petroleum
Inventory may be subject to one or more Specified Liens;

     (d) Petroleum Inventory that is (1) located at a location owned by the Borrower or a
Subsidiary Guarantor, (2) delivered to an Eligible Carrier under an arrangement described in clause
(ii) of paragraph (a) above, or (3) located at a location leased by or under contract by the
Borrower or a Subsidiary Guarantor so long as such location is either subject to a Third Party
Agreement or such location is subject to the Rental Reserve;

     (e) Petroleum Inventory that is not commingled with Petroleum Inventory of any Person other
than the Borrower and/or its Subsidiaries or has been delivered to an Eligible Carrier under an
arrangement described in clause (ii) of paragraph (a) above,

8

 

     (f) Petroleum Inventory that is in full conformity with the representations and warranties
made by the Borrower or a Subsidiary Guarantor to the Agent with respect thereto whether contained
in this Agreement or the Security Agreement, and

     (g) To the extent Petroleum Inventory is in transit on the high seas to or from a
non-Affiliate, (1) it does not constitute a Receivable, (2) if purchased with a Letter of Credit, a
copy of such Letter of Credit has been delivered to the Agent, (3) it is covered by insurance in
form and substance reasonably acceptable to the Agent, and (4) all applicable documents of title
have been delivered to the Agent (or a designee (including, if so designated by the Agent, the
Borrower or a Subsidiary Guarantor) of the Agent); provided, however, that with
respect to the high seas Petroleum Inventory described in this clause (g), the amount of such high
seas Petroleum Inventory on any date of determination in excess of 33.333% of the aggregate amount
of all Petroleum Inventory then owned by the Borrower and its Subsidiary Guarantors on such date of
determination shall not constitute Eligible Petroleum Inventory.

Notwithstanding anything to the contrary set forth in this Agreement or any other Loan Document, no
Petroleum Inventory located, stored or maintained at any retail service station or in a railroad
car, or otherwise in transit upon a railway system, shall constitute Eligible Petroleum Inventory.

     “Eligible Receivables” means Receivables created by the Borrower or any Subsidiary Guarantor,
in each case in the ordinary course of its business arising out of the sale of goods or rendition
of services by the Borrower or such Subsidiary Guarantor, which Receivables are and at all times
shall continue to meet standards of eligibility from time to time reasonably established in
accordance with this Agreement. Initially, standards of eligibility will be established by the
Agent in its reasonable credit judgment (which credit judgment shall be exercised in a manner that
is not arbitrary or capricious) and may be revised from time to time by the Agent in its reasonable
credit judgment (which credit judgment shall be exercised in a manner that is not arbitrary or
capricious). In general, without limiting the foregoing, the following Receivables are not
Eligible Receivables:

     (a) Receivables which remain unpaid sixty (60) days after the date on which payment was due or
ninety (90) days after the date of the original applicable invoice;

     (b) Receivables on any date of determination which are owing by an Account Debtor and its
Affiliates (i) which are from an Account Debtor whose senior unsecured obligations without giving
effect to third party credit enhancement are rated no less than BBB- by S&P (or the equivalent by a
recognized credit rating agency reasonably acceptable to the Agent) to the extent that the
aggregate amount of Receivables owing by said Account Debtor and its Affiliates to the Borrower or
any Subsidiary Guarantor exceeds 25% or, upon the request of the Borrower and with the approval of
the Agent, up to 35%, times the aggregate amount of all Eligible Receivables on such date; or (ii)
if such Account Debtor does not have such minimum rating, to the extent that the aggregate amount
of Receivables owing by such Account Debtor and its Affiliates to the Borrower or any Subsidiary
Guarantor exceeds 25% times the aggregate amount of all Eligible Receivables on such date;

9

 

     (c) all Receivables owing by a single Account Debtor (including Receivables which remain
unpaid fewer than sixty (60) days after the date on which payment was due or ninety (90) days after
the date of the original applicable invoice) if fifty percent (50%) of the aggregate balance owing
by such Account Debtor, calculated without taking into account any credit balances of such Account
Debtor, remains unpaid ninety (90) days after the date of the original applicable invoice or has
otherwise become, or has been determined by the Agent to be ineligible in accordance with the
provisions of this definition;

     (d) Receivables with respect to which the Account Debtor is a director, officer, employee,
Subsidiary or Affiliate of the Borrower or any Subsidiary thereof;

     (e) (i) Receivables with respect to which the Account Debtor is the United States of America,
any federal, state, local or other political subdivision thereof or any department, agency or
instrumentality of any of the foregoing, unless the Borrower or applicable Subsidiary Guarantor has
complied with the provisions of the Federal Assignment of Claims Act or other applicable statutes,
including executing and delivering to the Agent all statements of assignment and/or notification
which are in form and substance acceptable to the Agent and which are deemed necessary by the Agent
to effectuate the assignment of such Receivables to the Agent for the benefit of the Holders of
Secured Obligations; and (ii) Receivables with respect to which the Account Debtor is a foreign
government, any federal, state, local or other political subdivision thereof, or any department,
agency, or instrumentality of any of the foregoing described in this clause (ii);

     (f) Receivables not denominated in Dollars or not payable in the United States;

     (g) Receivables with respect to which the Account Debtor is not a resident of the United
States (which shall not be deemed to include any territories of the United States) or Canada unless
(i) the Account Debtor has supplied the Borrower or applicable Subsidiary Guarantor with an
irrevocable letter of credit (which letter of credit shall be delivered to the Agent and shall be
in form and substance acceptable to the Agent), or (ii) the full payment of such Receivable shall
have been insured by the Borrower or applicable Subsidiary Guarantor pursuant to an insurance
policy in form and substance acceptable to the Agent issued by a financial institution satisfactory
to the Agent, which policy names the Agent as the loss payee or beneficiary thereof; provided,
however, that up to $25 million of Receivables for which the Account Debtors therefor reside in the
United Kingdom, Japan, Australia, Singapore or a country which is a member of the European Union
shall constitute Eligible Receivables so long as all of the other eligibility requirements for such
Receivables are satisfied;

     (h) Receivables that are subject to any dispute, contra-account, defense, offset or
counterclaim, volume rebate or advertising or other allowance; provided that if any portion
of any such Receivables is not subject to any material dispute, contra-account, defense, offset,
counterclaim, volume rebate or advertising or other allowance and the payment of such portion is
not being withheld or delayed or otherwise affected in any manner due to the portion that is
subject to such material dispute, contra-account, defense, offset, counterclaim, volume rebate or
advertising or other allowance, then such portion which is not subject to any material dispute,
contra-account, defense, offset, counterclaim, volume rebate or advertising or other allowance
shall not be excluded from Eligible Receivables because of this clause (h); provided,
further, that

10

 

the portion of a contra-account that arises from a claim against the Borrower
or a Subsidiary Guarantor that is supported by a letter of credit issued on behalf of the Borrower
or a Subsidiary Guarantor in favor of a customer as payment for goods or services shall not be
excluded from Eligible Receivables because of this clause (h);

     (i) Receivables with respect to which the Account Debtor is the subject of a bankruptcy or
similar insolvency proceeding or has made an assignment for the benefit of creditors or whose
assets have been conveyed to a receiver, pledgee, trustee or assignee for the benefit of creditors
unless there is a letter of credit supporting such Receivables (which letter of credit shall have
been delivered to the Agent and shall be in form and substance acceptable to the Agent);

     (j) Receivables with respect to which the Account Debtor’s obligation to pay the Receivable is
conditional upon the Account Debtor’s approval or is otherwise subject to any repurchase obligation
or return right, as with sales made on a bill-and-hold, guaranteed sale, sale-and-return, sale on
approval (except with respect to Receivables in connection with which Account Debtors are entitled
to return Petroleum Inventory on the basis of the quality of such Petroleum Inventory) or
consignment basis, or where such Receivables represent progress billings;

     (k) Receivables with respect to which the Account Debtor is located in Minnesota (or any other
jurisdiction which adopts a statute or other requirement with respect to which any Person that
obtains business from within such jurisdiction or is otherwise subject to such jurisdiction’s tax
law requiring such Person to file a Business Activity Report or make any other required filings in
a timely manner in order to enforce its claims in such jurisdiction’s courts or arising under such
jurisdiction’s laws); provided, however, such Receivables shall nonetheless be
eligible if the Borrower or applicable Subsidiary Guarantor has filed a Business Activity Report
(or other applicable report) with the applicable state office, or is qualified to do business in
such jurisdiction and, at the time the Receivable was created, was qualified to do business in such
jurisdiction, or had on file with the applicable state office a current Business Activity Report
(or other applicable report), or is exempt from such filing requirement;

     (l) Receivables with respect to which the Account Debtor’s obligation does not constitute its
legal, valid and binding obligation, enforceable against it in accordance with its terms;

     (m) Receivables with respect to which the Borrower or applicable Subsidiary Guarantor has not
yet shipped the applicable goods or performed the applicable service;

     (n) any Receivable which is not in conformity with the representations and warranties made by
the Borrower or the applicable Subsidiary Guarantors to the Agent with respect thereto, whether
contained in this Agreement or the Security Agreement;

     (o) Receivables in connection with which the Borrower or applicable Subsidiary Guarantor (or
any other party to such Receivable) is in default in the performance or observance of any of the
terms thereof (other than payment of such Receivable) in any material respect;

11

 

     (p) Receivables that are not bona fide existing obligations created by the sale and actual
delivery of inventory, goods or other property or the furnishing of services of other good and
sufficient consideration to customers of the Borrower or the applicable Subsidiary Guarantors in
the ordinary course of business;

     (q) Receivables subject to any Lien or the Petroleum Inventory, goods, property, services or
other consideration of which any such Receivable constitutes proceeds is subject to any such Lien,
in either case other than the Lien granted to the Agent in connection herewith for the benefit of
the Holders of Secured Obligations; provided, that such Receivables may be subject to one
or more Specified Liens;

     (r) Receivables that have been classified by the Borrower or any Subsidiary Guarantor as
doubtful or that have otherwise failed to meet established or customary credit standards of the
Borrower or the Subsidiary Guarantors, to the extent of such write-down;

     (s) Receivables evidenced by a promissory note or other similar instrument;

     (t) Receivables that are expressly by their terms subordinate or junior in right or priority
of payment to any other obligation or claim of the Account Debtor;

     (u) Receivables that are consigned or otherwise assigned to any Person for collection or
otherwise; and

     (v) Receivables generated by sales on a cash-on-delivery basis.

     “Environmental Laws” means any and all federal, state and local statutes, laws, judicial
decisions, regulations, ordinances, rules, judgments, orders, decrees, plans, injunctions, permits,
concessions, grants, franchises, licenses, agreements and other governmental restrictions relating
to (i) the protection of the environment, (ii) the effect of the environment on human health, (iii)
emissions, discharges or releases of pollutants, contaminants, hazardous substances or wastes into
surface water, ground water or land, or (iv) the manufacture, processing, distribution, use,
treatment, storage, disposal, transport or handling of pollutants, contaminants, hazardous
substances or wastes or the clean-up or other remediation thereof.

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

     “Eurodollar Advance” means an Advance which, except as otherwise provided in Section 2.10,
bears interest at the applicable Eurodollar Rate.

     “Eurodollar Base Rate” means, with respect to any Eurodollar Advance for any Interest Period,
the rate appearing on Reuters BBA Libor Rates Page 3750 (or on any successor or substitute page of
such Service, or any successor to or substitute for such Service, providing rate quotations
comparable to those currently provided on such page of such Service, as determined by the Agent
from time to time for purposes of providing quotations of interest rates applicable to deposits in
Dollars in the London interbank market) at approximately 11:00 a.m., London time, two (2) Business
Days prior to the commencement of such Interest Period, as the rate for deposits in Dollars with a
maturity comparable to such Interest Period. In the event that such

12

 

rate is not available at such
time for any reason, then the “Eurodollar Base Rate” with respect to such Eurodollar Advance for
such Interest Period shall be the rate at which deposits in Dollars of $5,000,000 and for a
maturity comparable to such Interest Period are offered by the principal London office of the Agent
in immediately available funds in the London interbank market at approximately 11:00 a.m., London
time, two (2) Business Days prior to the commencement of such Interest Period.

     “Eurodollar Loan” means a Loan which, except as otherwise provided in Section 2.10, bears
interest at the applicable Eurodollar Rate.

     “Eurodollar Rate” means, with respect to a Eurodollar Advance for the relevant Interest
Period, the sum of (i) the quotient of (a) the Eurodollar Base Rate applicable to such Interest
Period, divided by (b) one minus the Reserve Requirement (expressed as a decimal) applicable to
such Interest Period, plus (ii) the then Applicable Margin, changing as and when the Applicable
Margin changes.

     “Excess Availability” means, on any date of determination, the excess of the Borrowing Base
over the Aggregate Outstanding Credit Exposure on such date.

     “Excluded Proceeds” is defined in Section 6.24.

     “Excluded Subsidiary” means each of Tesoro Marine Services, LLC, Interior Fuels Company,
Coastwide Marine Services, Inc., Tesoro Petroleum (Singapore) Pte. Ltd., Tesoro Canada Supply &
Distribution Ltd, Tesoro (UK) Supply & Trading, Ltd., Philosopher’s Stone Land Company,
Philosopher’s Stone Land Partners, L.P., Tesoro Marine Services Holding Company, AHZ, LLC, MZH,
LLC, ZAO, LLC, the Pipeline Subsidiaries, and such other Subsidiaries that the Borrower, with the
Agent’s prior written consent, may identify to the Agent and the Lenders from time to time.

     “Excluded Taxes” means, in the case of each Lender or applicable Lending Installation and the
Agent, taxes imposed on its overall net income, and franchise taxes imposed on it, by (i) the
jurisdiction under the laws of which such Lender or the Agent is incorporated or organized or any
political combination or subdivision or taxing authority thereof or (ii) the jurisdiction in which
the Agent’s or such Lender’s principal executive office or such Lender’s applicable Lending
Installation is located.

     “Exhibit” refers to an exhibit to this Agreement, unless another document is specifically
referenced.

     “Facility LC” is defined in Section 2.19.1.

     “Facility LC Application” is defined in Section 2.19.3.

     “Facility LC Collateral Account” is defined in Section 2.19.11.

     “Federal Funds Effective Rate” means, for any day, an interest rate per annum equal to the
weighted average (rounded upwards, if necessary, to the next 1/100th of 1%) of the rates
on overnight Federal funds transactions with members of the Federal Reserve System arranged by

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Federal funds brokers on such day, as published for such day (or, if such day is not a Business
Day, for the immediately preceding Business Day) by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day which is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100th of 1%) of the quotations at approximately 10:00 a.m.
(Chicago time) for such day for such transactions received by the Agent from three Federal funds
brokers of recognized standing selected by the Agent in its sole discretion.

     “Financing” means, with respect to any Person, (i) the issuance or sale by such Person of any
equity interests in such Person, or (ii) the issuance or sale by such Person of any Indebtedness
other than Indebtedness described in Sections 6.14.1 through 6.14.5; provided,
however, that the foregoing clause (ii) shall not permit the incurrence by the Borrower or
any Subsidiary of any Indebtedness if such incurrence is not otherwise permitted by this Agreement.

     “Fixed Charges” means, for any period of determination, the sum of (i) Consolidated Interest
Expense on a cash basis, and (ii) scheduled cash payments of the principal amount of Indebtedness;
provided, however, that payments of principal owing under or in connection with the
Revolving Loans shall not be included in any determination of Fixed Charges.

     “Floating Rate” means, for any day, a rate per annum equal to the sum of (i) the Alternate
Base Rate for such day, changing when and as the Alternate Base Rate changes plus (ii) the then
Applicable Margin, changing as and when the Applicable Margin changes.

     “Floating Rate Advance” means an Advance which, except as otherwise provided in Section 2.10,
bears interest at the Floating Rate.

     “Floating Rate Loan” means a Revolving Loan which, except as otherwise provided in Section
2.10, bears interest at the Floating Rate.

     “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.

     “Golden Eagle Refinery” means the refining facility located in Martinez, California with a
rated crude oil capacity of approximately 166,000 barrels per day as of the Closing Date.

     “Gross Amount of Eligible Petroleum Inventory” means Eligible Petroleum Inventory valued at
market value, less (i) the value of reserves which have been recorded by the Borrower and the
Subsidiary Guarantors with respect to obsolete, slow-moving or excess Petroleum Inventory, and (ii)
such other reserves as the Agent elects to establish in accordance with its reasonable credit
judgment (which credit judgment shall be exercised in a manner that is not arbitrary or
capricious).

     “Gross Amount of Eligible Receivables” means the outstanding face amount of Eligible
Receivables, determined in accordance with Agreement Accounting Principles, consistently applied,
less (i) all financing charges, late fees and other fees that are unearned, (ii) the value of any
accrual that has been recorded by the Borrower and the Subsidiary Guarantors with respect to
downward price adjustments, and (iii) such other reserves as the Agent elects to establish in

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accordance with its reasonable credit judgment (which credit judgment shall be exercised in a
manner that is not arbitrary or capricious).

     “Guaranty” means the Subsidiary Guaranty, dated as of April 17, 2003, made by certain
Subsidiaries of the Borrower in favor of the Agent for the benefit of the Holders of Secured
Obligations, as the same may be amended, restated, supplemented or otherwise modified from time to
time.

     “Highest Lawful Rate” means, at any time, the maximum rate of interest the Holders of Secured
Obligations may lawfully contract for, charge, or receive in respect of the Secured Obligations as
allowed by any applicable law. For purposes of determining the Highest Lawful Rate under
applicable law of the State of Texas, the applicable rate ceiling shall be (a) the “weekly ceiling”
described in and computed in accordance with the provisions of Section 303.003 of the Texas Finance
Code, as amended, or (b) if the parties subsequently contract as allowed by any applicable law, the
“quarterly ceiling” or the “annualized ceiling” computed pursuant to Section 303.008 of the Texas
Finance Code, as amended; provided, however, that at any time the “weekly ceiling”,
the “quarterly ceiling”, or the “annualized ceiling” shall be less than eighteen percent (18.0%)
per annum or more than twenty-four percent (24.0%) per annum, the provisions of Section 303.009(a)
and Section 300.009(b) of the Texas Finance Code, as amended, shall control for purposes of such
determination, as applicable.

     “Holders of Secured Obligations” means the holders of the Secured Obligations from time to
time and shall refer to (i) each Lender in respect of its Loans, (ii) each LC Issuer in respect of
Reimbursement Obligations, (iii) the Agent, the Lenders, and the LC Issuers in respect of all other
present and future obligations and liabilities of the Borrower or any of its Subsidiary Guarantors
of every type and description arising under or in connection with this Agreement or any other Loan
Document, (iv) each Person benefiting from indemnities made by the Borrower or any Subsidiary
Guarantor hereunder or under other Loan Documents in respect of the obligations and liabilities of
the Borrower or such Subsidiary Guarantor to such Person, (v) each Lender (or affiliate thereof),
in respect of all Rate Management Obligations of the Borrower to such Lender (or such affiliate) as
exchange party or counterparty under any Rate Management Transaction, and (vi) their respective
successors, transferees and assigns.

     “Indebtedness” of a Person means, at any time, without duplication, such Person’s (i)
obligations for borrowed money, (ii) obligations representing the deferred purchase price of
Property or services (other than current accounts payable arising in the ordinary course of such
Person’s business payable on terms customary in the trade), (iii) obligations, whether or not
assumed, secured by Liens or payable out of the proceeds or production from Property now or
hereafter owned or acquired by such Person, (iv) obligations which are evidenced by notes, bonds,
debentures, acceptances, or other instruments, (v) obligations to purchase securities or other
Property arising out of or in connection with the sale of the same or substantially similar
securities or Property, (vi) Capitalized Lease Obligations, (vii) Contingent Obligations of such
Person, (viii) reimbursement obligations under Letters of Credit, bankers’ acceptances, surety
bonds and similar instruments, (ix) Off-Balance Sheet Liabilities, (x) obligations under Sale and
Leaseback Transactions, (xi) Net Mark-to-Market Exposure under Rate Management Transactions, (xii)
all obligations of such Person, contingent or otherwise, to purchase, redeem, retire or otherwise
acquire for value any capital stock of such Person, (xiii) the liquidation value

15

 

of any mandatorily
redeemable preferred capital stock of such Person or its Subsidiaries held by any Person other than
such Person and its wholly-owned Subsidiaries, (xiv) obligations of any partnership or
unincorporated joint venture in which such Person is a general partner or a joint venturer, but
only to the extent to which there is recourse to such Person for the payment of such obligations,
and (xv) any other obligation for borrowed money which in accordance with Agreement Accounting
Principles would be shown as a liability on the consolidated balance sheet of such Person.
Obligations of the Borrower and its Subsidiaries to pay dues to Marine Spill Response Corporation
in an aggregate amount of up to $4,000,000 shall not be deemed to constitute Indebtedness.
Obligations in an aggregate amount not in excess of $7,000,000 at any time owing in respect of the
Borrower’s retention and use of Cook Inlet Spill Prevention and Response, Inc. (which provides the
Borrower with spill-response capabilities) shall not constitute Indebtedness.

     “Indebtedness Prepayment Conditions” means, with respect to any prepayment, defeasance,
purchase, redemption, retirement or acquisition of any Indebtedness, so long as immediately before
and after making such prepayment of Indebtedness, on a pro forma basis (i) no Default or Unmatured
Default exists, (ii) Excess Availability equals or exceeds 20% of the Borrowing Base then in effect
and shall remain equal to or in excess of 20% for the remainder of the day on which such prepayment
is made, and (iii) the “Fixed Charge Coverage Ratio” as calculated in Section 6.21 on a rolling
four quarter basis exceeds 1.15 to 1.00.

     “Interest Period” means, with respect to a Eurodollar Advance, a period of one, two, three or
six months, commencing on a Business Day selected by the Borrower pursuant to this Agreement. Such
Interest Period shall end on but exclude the day which corresponds numerically to such date one,
two, three or six months thereafter, provided, however, that if there is no such
numerically corresponding day in such next, second, third or sixth succeeding month, such Interest
Period shall end on the last Business Day of such next, second, third or sixth succeeding month.
If an Interest Period would otherwise end on a day which is not a Business Day, such Interest
Period shall end on the next succeeding Business Day, provided, however, that if
said next succeeding Business Day falls in a new calendar month, such Interest Period shall end on
the immediately preceding Business Day.

     “Interim Collateral Report” means a report, in form and substance substantially similar to
Exhibit J-1 hereto and acceptable to the Agent.

     “Interim Financing Documents” means that certain unsecured $700,000,000 Credit Agreement,
dated as of the date hereof, by and among the Borrower, each of the lenders from time to time a
party thereto and Lehman Commercial Paper Inc., in its capacity as administrative agent thereunder,
and each of the “Guarantees” and other “Loan Documents” described therein or delivered in
connection therewith, in each case as the same may be amended, restated, supplemented or otherwise
modified from time to time.

     “Investment” of a Person means any loan, advance (other than commission, travel and similar
advances to officers and employees made in the ordinary course of business), extension of credit
(other than accounts receivable arising in the ordinary course of business on terms customary in
the trade) or contribution of capital by such Person; stocks, bonds, mutual funds, partnership
interests, notes, debentures or other securities owned by such Person; any deposit

16

 

accounts and
certificates of deposit owned by such Person; and structured notes, derivative financial
instruments and other similar instruments or contracts owned by such Person.

     “JPMorgan” means JPMorgan Chase Bank, National Association, in its individual capacity, and
its successors.

     “LC Fee” is defined in Section 2.19.4.

     “LC Issuer” means (i) JPMorgan (or any subsidiary or affiliate of JPMorgan designated by
JPMorgan) and (ii) any other Lender with a Revolving Loan Commitment hereunder (or any subsidiary
or affiliate of such Lender designated by such Lender) which, at the Borrower’s request, agrees, in
such Lender’s sole discretion, to become a LC Issuer, in each such case in JPMorgan’s or such
Lender’s separate capacity (as applicable) as an issuer of Facility LCs hereunder. All references
in this Agreement and the other Loan Documents to the “LC Issuer” shall be deemed to apply equally
to each of the institutions referred to in clauses (i) and (ii) of this definition in their
respective capacities as LC Issuer of any and all Facility LCs issued by each such institution.

     “LC Obligations” means, at any time, the sum, without duplication, of (i) the aggregate
undrawn stated amount under all Facility LCs outstanding at such time plus (ii) the
aggregate unpaid amount at such time of all Reimbursement Obligations.

     “LC Payment Date” is defined in Section 2.19.5.

     “Lenders” means the lending institutions listed on the signature pages of this Agreement or
lending institutions parties to Assignment Agreements delivered pursuant to Section 12.3, in each
case together with their respective successors and assigns. Unless otherwise specified, the term
“Lenders” includes each LC Issuer, the Non-Ratable Lender and the Agent with respect to Collateral
Protection Advances.

     “Lending Installation” means, with respect to a Lender or the Agent, the office, branch,
subsidiary or affiliate of such Lender or the Agent listed on the signature pages hereof or on the
administrative information sheets provided to the Agent in connection herewith or on a Schedule or
otherwise selected by such Lender or the Agent pursuant to Section 2.16.

     “Letter of Credit” of a Person means a letter of credit or similar instrument which is issued
upon the application of such Person or upon which such Person is an account party or for which such
Person is in any way liable.

     “Lien” means any lien (statutory or other), mortgage, pledge, hypothecation, assignment,
deposit arrangement, encumbrance or preference, priority or other security agreement or
preferential arrangement of any kind or nature whatsoever (including, without limitation, the
interest of a vendor or lessor under any conditional sale, Capitalized Lease or other title
retention agreement, and, in the case of stock, stockholders agreements, voting trust agreements
and all similar arrangements).

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     “Loan” means, with respect to a Lender, any loan of such Lender made pursuant to Article II
(or any conversion or continuation thereof), including, without limitation, Revolving Loans,
Collateral Protection Advances and Non-Ratable Loans.

     “Loan Documents” means this Agreement, the Facility LC Applications, the Collateral Documents,
the Guaranty, and all other documents, instruments, notes (including any Notes issued pursuant to
Section 2.12 (if requested)) and agreements executed in connection herewith or therewith or
contemplated hereby or thereby, as the same may be amended, restated or otherwise modified and in
effect from time to time.

     “Los Angeles Refinery” means the refining facility located in Wilmington California purchased
in connection with the 2007 Shell Acquisition with a rated crude oil capacity of approximately
100,000 barrels per day as of the Closing Date.

     “Material Adverse Effect” means a material adverse effect on (i) the business, Property,
condition (financial or otherwise), operations or results of operations of the Borrower and its
Subsidiaries taken as a whole, (ii) the ability of the Borrower or any Subsidiary Guarantor to
perform its obligations under the Loan Documents, or (iii) the validity or enforceability of the
Loan Documents or the rights or remedies of the Agent, the LC Issuers, or the Lenders thereunder or
their rights with respect to the Collateral.

     “Material Indebtedness” means any Indebtedness in an outstanding principal amount of
$25,000,000 or more in the aggregate (or the equivalent thereof in any currency other than
Dollars).

     “Material Indebtedness Agreement” means any agreement under which any Material Indebtedness
was created or is governed or which provides for the incurrence of Indebtedness in an amount which
would constitute Material Indebtedness (whether or not an amount of Indebtedness constituting
Material Indebtedness is outstanding thereunder).

     “Modify” and “Modification” are defined in Section 2.19.1.

     “Monthly Collateral Report” means a report, in form and substance substantially similar to
Exhibit J-2 hereto and reasonably acceptable to the Agent, which shall include, among other things,
the following additional information:

     (i) a detailed aged trial balance of each Receivable of the Borrower and its Subsidiaries in
existence as of the date of such report specifying the name and balance due for the applicable
Account Debtor, as reconciled in a manner reasonably acceptable to the Agent;

     (ii) with respect to Petroleum Inventory, a detailed listing of product type, volume on hand
by location, and Current Petroleum Inventory Market Price;

     (iii) a spreadsheet which identifies all Eligible Receivables and Eligible Petroleum Inventory
and all non-Eligible Receivables and non-Eligible Petroleum Inventory; and

     (iv) a schedule and aging of the Borrower’s and its Subsidiaries’ accounts payable.

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

     “Multiemployer Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA,
which is covered by Title IV of ERISA and to which the Borrower or any member of the Controlled
Group is obligated to make contributions.

     “Net Cash Proceeds” means, with respect to any sale of Property or any Financing by any
Person, (a) cash (freely convertible into Dollars) received by such Person or any Subsidiary of
such Person from such sale of Property (including cash received as consideration for the assumption
or incurrence of liabilities incurred in connection with or in anticipation of such sale of
Property) or Financing, after (i) provision for all income or other taxes measured by or resulting
from such sale of Property, (ii) payment of all reasonable brokerage commissions and other fees and
expenses related to such sale of Property or Financing, and (iii) all amounts used to repay
Indebtedness secured by a Lien on any asset disposed of in such sale of Property which is or may be
required (by the express terms of the instrument governing such Indebtedness) to be repaid in
connection with such sale of Property (including payments made to obtain or avoid the need for the
consent of any holder of such Indebtedness) or Financing.

     “Net Consolidated Capital Expenditures” means, with respect to any fiscal quarter,
Consolidated Capital Expenditures for such quarter minus Net Cash Proceeds resulting from Asset
Sales during such quarter minus the aggregate amount of purchase money Indebtedness incurred during
such quarter.

     “Net Mark-to-Market Exposure” of a Person means, as of any date of determination, the excess
(if any) of all unrealized losses over all unrealized profits of such Person arising from Rate
Management Transactions. “Unrealized losses” means the fair market value of the cost to such
Person of replacing such Rate Management Transaction as of the date of determination (assuming the
Rate Management Transaction were to be terminated as of that date), and “unrealized profits” means
the fair market value of the gain to such Person of replacing such Rate Management Transaction as
of the date of determination (assuming such Rate Management Transaction were to be terminated as of
that date).

     “Non-Lender Asset Sale Proceeds” means any amount (x) that results from a sale of the
Borrower’s or any Subsidiary’s Property, (y) that does not constitute Collateral, and (z) that is
not required to be applied in reduction of the principal amount of outstanding Loans under Section
2.2.2.

     “Non-Ratable Lender” means JPMorgan or such other Lender which may succeed to JPMorgan’s
rights and obligations as Non-Ratable Lender pursuant to the terms of this Agreement.

     “Non-Ratable Loan” has the meaning set forth in Section 2.1.3.

     “Non-U.S. Lender” is defined in Section 3.5(iv).

     “Note” is defined in Section 2.12.

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     “Obligations” means all Revolving Loans, Non-Ratable Loans, Reimbursement Obligations,
advances, debts, liabilities, obligations, covenants and duties owing by the Borrower to the Agent,
any Lender, the Non-Ratable Lender, any LC Issuer, the Arrangers, any affiliate of the Agent, any
Lender, the Non-Ratable Lender, any LC Issuer, or the Arrangers, or any indemnitee under the
provisions of Section 9.6 or any other provisions of the Loan Documents, in each case of any kind
or nature, present or future, arising under this Agreement or any other Loan Document, whether or
not evidenced by any note, guaranty or other instrument, whether or not for the payment of money,
whether arising by reason of an extension of credit, loan, foreign exchange risk, guaranty,
indemnification, or in any other manner, whether direct or indirect (including those acquired by
assignment), absolute or contingent, due or to become due, now existing or hereafter arising and
however acquired. The term includes, without limitation, all interest, charges, expenses, fees,
attorneys’ fees and disbursements, paralegals’ fees (in each case whether or not allowed), and any
other sum chargeable to the Borrower or any of its Subsidiaries under this Agreement or any other
Loan Document.

     “Off-Balance Sheet Liability” of a Person means the principal component of (i) any repurchase
obligation or liability of such Person with respect to Receivables sold by such Person, (ii) any
liability under any Sale and Leaseback Transaction which is not a Capitalized Lease, (iii) any
liability under any so-called “synthetic lease” or “tax ownership operating lease” transaction
entered into by such Person, (iv) any Receivables Purchase Facility, or (v) any obligation arising
with respect to any other transaction which is the functional equivalent of or takes the place of
borrowing but which does not constitute a liability on the consolidated balance sheets of such
Person, but excluding from this clause (v) all Operating Leases.

     “Operating Lease” of a Person means any lease of Property (other than a Capitalized Lease) by
such Person as lessee which has an original term (including any required renewals and any renewals
effective at the option of the lessor) of one year or more.

     “Operating Lease Obligations” means, as of any date of determination, the amount obtained by
aggregating the present values, determined in the case of each particular Operating Lease by
applying a discount rate (which discount rate shall equal the discount rate which would be applied
under Agreement Accounting Principles if such Operating Lease were a Capitalized Lease) from the
date on which each fixed lease payment is due under such Operating Lease to such date of
determination, of all fixed lease payments due under all Operating Leases of the Borrower and its
Subsidiaries.

     “Other Taxes” is defined in Section 3.5(ii).

     “Outstanding Credit Exposure” means, as to any Lender at any time, the aggregate principal
amount of its Revolving Loans outstanding at such time (which shall include, without limitation,
the amount of its ratable obligation to purchase participations in (a) the aggregate principal
amount of Non-Ratable Loans outstanding at such time, (b) the LC Obligations at such time, and (c)
Collateral Protection Advances outstanding at such time).

     “Outstanding Revolving Loan Credit Exposure” means, as to any Lender at any time, the sum of
(i) the aggregate principal amount of its Revolving Loans outstanding at such time, plus (ii) an
amount equal to its Pro Rata Share of the LC Obligations at such time.

20

 

     “Participants” is defined in Section 12.2.1.

     “Payment Date” means April 1st, July 1st, October 1st, and
January 1st of each calendar year and the Termination Date. Each Payment Date other
than the Termination Date shall relate to the calendar quarter immediately preceding it. For
example, quarterly payments which accrue in respect of the quarter ending March 31st
shall be due and payable on April 1st.

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

     “Perfected Cash Interests” means Dollars or Cash Equivalent Investments on deposit in
collection accounts subject to control agreements in form and substance acceptable to the Agent
that grant the Agent first priority perfected security interests in such accounts and the Dollars
and Cash Equivalent Investments (including proceeds thereof) on deposit or otherwise maintained
therein or other similar arrangements whereby the bank or financial institution holding such
deposits have acknowledged the Lien created thereon and the Agent holds a first priority perfected
security interest therein.

     “Permitted Acquisition” is defined in Section 6.13.4.

     “Person” means any natural person, corporation, firm, joint venture, partnership, limited
liability company, association, enterprise, trust or other entity or organization, or any
government or political subdivision or any agency, department or instrumentality thereof.

     “Petroleum Inventory” means inventory consisting of crude oil, petroleum, refined petroleum
products, byproducts and intermediate feedstocks, and other energy-related commodities, including,
without limitation, blend components commonly used in the petroleum industry to improve
characteristics of, or meet governmental or customer specifications for, petroleum or refined
petroleum products, all of which inventory shall be valued at market.

     “Pipeline Subsidiaries” means each of Kenai Pipeline Company, Tesoro Alaska Pipeline Company,
Tesoro High Plains Pipeline Company, and each other Person (i) that does not own Collateral or
Property required to be Collateral hereunder, and (ii) substantially all of the assets of which
consist of one or more pipelines comparable to the ones owned by Kenai Pipe Line Company, Tesoro
Alaska Pipeline Company, and Tesoro High Plains Pipeline Company, in each case together with their
respective permitted successors and assigns, including, without limitation, debtors in possession
on their behalf.

     “Plan” means an employee pension benefit plan, excluding any Multiemployer Plan, which is
covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the
Code as to which the Borrower or any member of the Controlled Group, may have any liability.

     “Pricing Schedule” means the Schedule identifying the Applicable Margin and the Applicable Fee
Rate, attached hereto and identified as such.

     “Prime Rate” means the rate of interest per annum publicly announced from time to time by
JPMorgan as its prime rate in effect at its principal office in New York City; each change in

21

 

the
Prime Rate shall be effective from and including the date such change is publicly announced as
being effective.

     “Prior Credit Agreement” means the Third Amended and Restated Credit Agreement, dated as of
May 25, 2004, by and among the Borrower, certain financial institutions, and JPMorgan, as
Administrative Agent, as amended or modified prior to the Closing Date.

     “Property” of a Person means any and all property, whether real, personal, tangible,
intangible, or mixed, of such Person, or other assets owned, leased or operated by such Person.

     “Pro Rata Share” means, with respect to a Lender, a portion equal to a fraction the numerator
of which is such Lender’s Revolving Loan Commitment at such time (in each case, as adjusted from
time to time in accordance with the provisions of this Agreement), and the denominator of which is
the Aggregate Revolving Loan Commitment at such time; provided, that if the Revolving Loan
Commitments have been terminated, “Pro Rata Share” means a fraction the numerator of which is such
Lender’s Outstanding Credit Exposure at such time and the denominator of which is the Aggregate
Outstanding Credit Exposure at such time.

     “Purchase Price” means the total consideration and other amounts payable in connection with
any Acquisition, including, without limitation, any portion of the consideration payable in cash,
all Indebtedness, liabilities and contingent obligations incurred or assumed in connection with
such Acquisition and all transaction costs and expenses incurred in connection with such
Acquisition, but exclusive of the value of any capital stock or other equity interests of the
Borrower or any Subsidiary issued as consideration for such Acquisition.

     “Purchasers” is defined in Section 12.3.1.

     “Rate Management Obligations” of a Person means any and all obligations of such Person,
whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired
(including all renewals, extensions and modifications thereof and substitutions therefor), under
(i) any and all Rate Management Transactions, and (ii) any and all cancellations, buy backs,
reversals, terminations or assignments of any Rate Management Transactions.

     “Rate Management Transaction” means any transaction (including an agreement with respect
thereto) now existing or hereafter entered by the Borrower or a Subsidiary which is a rate swap,
basis swap, forward rate transaction, equity or equity index swap, equity or equity index option,
bond option, interest rate option, foreign exchange transaction, cap transaction, floor
transaction, collar transaction, forward transaction, currency swap transaction, cross-currency
rate swap transaction, currency option or any other similar transaction (including any option with
respect to any of these transactions) or any combination thereof, whether linked to one or more
interest rates, foreign currencies, or equity prices.

     “Receivable(s)” means and includes any and all of the Borrower’s and its Subsidiaries’
presently existing and hereafter arising or acquired accounts, accounts receivable, and all present
and future rights of the Borrower and its Subsidiaries to payment for goods sold or leased or for
services rendered (except those evidenced by instruments or chattel paper), whether or not they
have been earned by performance, and all rights in and to any merchandise or goods which any

22

 

of the
same may represent, and all rights, title, security and guaranties with respect to each of the
foregoing, including, without limitation, any right of stoppage in transit.

     “Receivables Purchase Documents” means any series of receivables purchase or sale agreements
generally consistent with terms contained in comparable structured finance transactions pursuant to
which the Borrower or any of its Subsidiaries, in their respective capacities as sellers or
transferors of any Receivables, sell or transfer to SPVs all or a portion of their respective
right, title and interest in and to certain Receivables for further sale or transfer (or granting
of Liens to other purchasers of or investors in such assets or interests therein (and the other
documents, instruments and agreements executed in connection therewith), as any such agreements may
be amended, restated, supplemented or otherwise modified from time to time, or any replacement or
substitution therefor.

     “Receivables Purchase Facility” means any securitization facility made available to the
Borrower or any of its Subsidiaries, pursuant to which Receivables of the Borrower or any of its
Subsidiaries are transferred to one or more SPVs, and thereafter to certain investors, pursuant to
the terms and conditions of the Receivables Purchase Documents.

     “Refinancing Indebtedness” means any Indebtedness permitted under this Agreement that exists
(with respect to any amendments, modifications or supplements thereof) or that is incurred to
refund, refinance, replace, exchange, renew, repay, extend, modify, amend or supplement (including
pursuant to any defeasance or discharge mechanism) (collectively, “refinance”, “refinances” and
“refinanced” shall have a correlative meaning) any other specified Indebtedness permitted under
this Agreement, including any Indebtedness that refinances Refinancing Indebtedness,
provided, however, that:

     (i) if the Stated Maturity (as such term is hereinafter defined) of the Indebtedness being
refinanced is earlier than the Termination Date as set forth in clause (a) of the definition
thereof, the Refinancing Indebtedness has a Stated Maturity no earlier than the Stated Maturity of
the Indebtedness being refinanced, or if the Stated Maturity of the Indebtedness is being
refinanced is later than the Termination Date as set forth in clause (a) of the definition thereof,
the Refinancing Indebtedness has a Stated Maturity that is at least 91 days later than such
Termination Date;

     (ii) the Refinancing Indebtedness has an Average Life (as such term is hereinafter defined) at
the time such Refinancing Indebtedness is incurred equal to or greater than the Average Life of the
Indebtedness being refinanced;

     (iii) such Refinancing Indebtedness is incurred in an aggregate principal amount (or if issued
with original issue discount, an aggregate issue price) that is equal to or less than the sum of
the aggregate principal amount (or if issued with original issue discount, the aggregate accreted
value) then outstanding of the Indebtedness being refinanced (plus, without duplication, any
additional Indebtedness incurred to pay interest or premiums required by instruments governing such
existing Indebtedness and fees incurred in connection therewith);

23

 

     (iv) after giving effect to the incurrence of such Refinancing Indebtedness, no Default or
Unmatured Default would exist hereunder;

     (v) the obligor(s) of such Refinancing Indebtedness shall not be materially different than the
obligors of the Indebtedness being refinanced;

     (vi) the terms and conditions of such Refinancing Indebtedness shall be no less favorable on
the whole in any material respect than the terms and conditions of the Indebtedness being
refinanced; and

     (vii) any Property securing such Refinancing Indebtedness shall not include Collateral and
shall either (a) constitute Property that secures the Indebtedness being replaced by such
Refinancing Indebtedness or other Indebtedness permitted by this Agreement or (b) constitute
Property that secures or formerly secured purchase money Indebtedness permitted under Section
6.14.4.

     As used in this definition the term “Stated Maturity” means, with respect to any Indebtedness,
the date specified in the documents or instruments evidencing such Indebtedness as the fixed date
on which the payment of principal of such Indebtedness is due and payable, including pursuant to
any mandatory prepayment or redemption provision, but shall not include any contingent obligations
to repay, prepay, redeem or repurchase any such principal prior to the date originally scheduled
for the payment thereof. As used in this definition, the term “Average Life” means, as of the date
of determination, with respect to any Indebtedness, the quotient obtained by dividing (a) the sum
of the products of the numbers of years from the date of determination to the dates of each
successive scheduled principal payment of such Indebtedness multiplied by the amount of such
payment by (b) the sum of all such payments. For the avoidance of doubt, the Agent and the Lenders
agree that all Indebtedness incurred in connection with and pursuant to the Senior Note Documents
is, and shall otherwise be deemed to be “Refinancing Indebtedness” of the Indebtedness incurred in
connection with and pursuant to the Interim Financing Documents.

     “Regulation D” means Regulation D of the Board of Governors of the Federal Reserve System as
from time to time in effect and any successor thereto or other regulation or official
interpretation of said Board of Governors relating to reserve requirements applicable to member
banks of the Federal Reserve System.

     “Regulation U” means Regulation U of the Board of Governors of the Federal Reserve System as
from time to time in effect and any successor or other regulation or official interpretation of
said Board of Governors relating to the extension of credit by banks, non-banks and non-broker
lenders for the purpose of purchasing or carrying margin stocks applicable to member banks of the
Federal Reserve System.

     “Regulation X” means Regulation X of the Board of Governors of the Federal Reserve System as
from time to time in effect and any successor or other regulation or official interpretation of
said Board of Governors relating to the extension of credit by foreign lenders for the purpose of
purchasing or carrying margin stock (as defined therein).

24

 

     “Reimbursement Obligations” means, at any time, the aggregate of all obligations of the
Borrower then outstanding under Section 2.19 to reimburse each LC Issuer for amounts paid by such
LC Issuer in respect of any one or more drawings under Facility LCs.

     “Rental Reserve” means (i) with respect to any Eligible Carrier, such amount as the Agent in
its reasonable credit judgment shall establish after consultation with the Borrower, from time to
time for such Eligible Carrier and (ii) with respect to any location not owned by the Borrower or a
Subsidiary Guarantor at which Petroleum Inventory is located, stored, processed, maintained or
otherwise held, until such time as such location is subject to a Third Party Agreement, an amount
equal to 1 month’s rent or storage for such location.

     “Reportable Event” means a reportable event as defined in Section 4043 of ERISA and the
regulations issued under such section, with respect to a Plan subject to Title IV of ERISA,
excluding, however, such events as to which the PBGC has by regulation waived the requirement of
Section 4043(a) of ERISA that it be notified within 30 days of the occurrence of such event,
provided, however, that a failure to meet the minimum funding standard of Section
412 of the Code and of Section 302 of ERISA shall be a Reportable Event regardless of the issuance
of any such waiver of the notice requirement in accordance with either Section 4043(a) of ERISA or
Section 412(d) of the Code.

     “Required Lenders” means Lenders in the aggregate having greater than 50% of the Aggregate
Revolving Loan Commitment; provided, that if the Revolving Loan Commitments have been
terminated, “Required Lenders” means Lenders in the aggregate holding greater than 50% of the
Aggregate Outstanding Credit Exposure.

     “Reserve Requirement” means, with respect to an Interest Period, the maximum aggregate reserve
requirement (including all basic, supplemental, marginal and other reserves) which is imposed under
Regulation D on “Eurocurrency liabilities” (as defined in Regulation D).

     “Restricted Payments” is defined in Section 6.10.

     “Retail Property” means Property of the Borrower or any Subsidiary owned in connection with
the sale of motor fuels and convenience products and services to consumers in the retail market.

     “Revolving Loan” means, with respect to a Lender, such Lender’s loan made pursuant to its
commitment to lend set forth in Section 2.1 (and any conversion or continuation thereof).

     “Revolving Loan Commitment” means, for each Lender, including, without limitation, each LC
Issuer, such Lender’s obligation to make Revolving Loans to, and participate in Facility LCs issued
upon the application of, the Borrower in an aggregate amount not exceeding the amount set forth for
such Lender on the Commitment Schedule or in an Assignment Agreement delivered pursuant to Section
12.3, as such amount may be modified from time to time pursuant to the terms hereof.

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

25

 

     “Sale and Leaseback Transaction” means any sale or other transfer of Property by any Person
with the intent to lease such Property as lessee.

     “Schedule” refers to a specific schedule to this Agreement, unless another document is
specifically referenced.

     “Section” means a numbered section of this Agreement, unless another document is specifically
referenced.

     “Secured Obligations” means, collectively, (i) the Obligations, (ii) all Rate Management
Obligations owing in connection with Rate Management Transactions to any Lender or any affiliate of
any Lender, and (iii) to the extent not covered in clauses (i) and (ii), amounts owing to any
Lender or the Agent under or in connection with Bank Products provided by such Lender or the Agent
to the Borrower or its Affiliates.

     “Security Agreement” means the Security Agreement, dated as of April 17, 2003, by and among
the Borrower, certain Subsidiaries thereof and the Agent for the benefit of the Holders of Secured
Obligations, as the same may be amended, restated, supplemented or otherwise modified from time to
time.

     “Senior Note Documents” means (i) the Borrower’s unsecured fixed rate senior notes in the
aggregate principal amount of up to $700,000,000, which, as of the Closing Date, are anticipated to
mature in two tranches in 2012 and 2017, respectively, and to be guaranteed on a senior unsecured
basis by substantially all of the Borrower’s domestic Subsidiaries, (ii) each of the guarantees of
such notes on a senior unsecured basis by substantially all of the Borrower’s domestic
Subsidiaries, (iii) the indentures or other similar documents governing certain of the terms and
conditions of such notes and guarantees and pursuant to which such notes shall be issued and (iv)
such other documents, memoranda, filings, registrations, certificates and instruments delivered in
connection with or pursuant to the issuance of such notes, in each case as the same may be amended,
restated, supplemented or otherwise modified from time to time. The “Senior Note Documents” shall
also include any notes and guarantees issued pursuant to a registered offering of notes and
guarantees in exchange for the initially issued notes and guarantees so long as the aggregate
principal amount thereof does not exceed $700,000,000.

     “Single Employer Plan” means a Plan maintained by the Borrower or any member of the Controlled
Group for employees of the Borrower or any member of the Controlled Group.

     “Specified Customers” means nine customers of the Borrower and the Subsidiary Guarantors from
time to time identified as “Specified Customers” to the Agent by the Borrower. The Agent may from
time to time request that the Borrower update or revise, to the Agent’s reasonable satisfaction,
the list of “Specified Customers.” The Agent agrees that it has received an initial list of
“Specified Customers” as of the Closing Date.

     “Specified Liens” means Liens permitted under Sections 6.15.2, 6.15.3, 6.15.4 and 6.15.9.

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     “SPV” means any special purpose entity established for the purpose of purchasing Receivables
in connection with a Receivables securitization transaction permitted under the terms of this
Agreement.

     “Standard Reserve” means $50,000,000 unless the “Fixed Charge Coverage Ratio”, as calculated
pursuant to Section 6.21 for each fiscal quarter based upon the four then most-recently ended
fiscal quarters, is less than 1.00 to 1.00, in which case “Standard Reserve” means the greater of
$50,000,000 and 15% of the then effective Borrowing Base (as calculated without giving effect to or
including the Standard Reserve, the first purchaser crude liability reserve and the taxes held in
trust/priming lien reserve and as the amount of such Borrowing Base may change from time to time
upon the delivery of Interim Collateral Reports or Monthly Collateral Reports).

     “Subordinated Indebtedness” means any Indebtedness the payment of which is subordinated to the
payment of the Secured Obligations to the reasonable written satisfaction of the Agent and the
Required Lenders.

     “Subsidiary” of a Person means (i) any corporation more than 50% of the outstanding securities
having ordinary voting power of which shall at the time be owned or controlled, directly or
indirectly, by such Person or by one or more of its Subsidiaries or by such Person and one or more
of its Subsidiaries, or (ii) any partnership, limited liability company, association, joint venture
or similar business organization more than 50% of the ownership interests having ordinary voting
power of which shall at the time be so owned or controlled. Unless otherwise expressly provided,
all references herein to a “Subsidiary” shall mean a Subsidiary of the Borrower and no Excluded
Subsidiary shall constitute a Subsidiary of the Borrower.

     “Subsidiary Guarantors” means those Subsidiaries of the Borrower subject to the Guaranty as of
the Closing Date, together with those other Persons organized under the laws of the United States
or a political subdivision thereof that become subject to the Guaranty in accordance with Section
6.23 after the Closing Date, in each case together with its permitted successors and assigns
(including, without limitation, a debtor in possession on its behalf).

     “Substantial Portion” means, with respect to the Property of the Borrower and its
Subsidiaries, Property which represents more than 15% of the consolidated assets of the Borrower
and its Subsidiaries or property which is responsible for more than 15% of the consolidated net
sales or of the Consolidated Net Income of the Borrower and its Subsidiaries, in each case, as
would be shown in the consolidated financial statements of the Borrower and its Subsidiaries, as at
the end of the four fiscal quarter period ending with the fiscal quarter immediately prior to the
fiscal quarter in which such determination is made (or if financial statements have not been
delivered hereunder for that fiscal quarter which ends the four fiscal quarter period, then the
financial statements delivered hereunder for the quarter ending immediately prior to that quarter).

     “Taxes” means any and all present or future taxes, duties, levies, imposts, deductions,
charges or withholdings, and any and all liabilities with respect to the foregoing, but excluding
Excluded Taxes.

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     “Termination Date” means the earlier of (a) May 11, 2012 and (b) the date of termination in
whole of the Aggregate Revolving Loan Commitment pursuant to Section 2.4 hereof or the Revolving
Loan Commitments pursuant to Section 8.1 hereof.

     “Third Party Agreement” means a letter agreement, in form and substance acceptable to the
Agent, pursuant to which a landlord, bailee, consignee, pledgee, processor, warehouseman, terminal
pipeline or other third party who stores, processes, maintains, transports or holds Collateral
acknowledges, among other things, the Agent’s Lien on such Collateral, the Agent’s ability to
enforce its Lien on such Collateral, and the subordination of any Lien held by such landlord,
bailee, consignee, pledgee, processor, warehouseman, terminal pipeline or other third party on such
Collateral to the Agent’s Lien thereon.

     “Transferee” is defined in Section 12.4.

     “2007 Acquisitions” means each of the 2007 Shell Acquisition and the 2007 USA Petroleum
Acquisition.

     “2007 USA Petroleum Acquisition” means the purchase by the Borrower from USA Petroleum of
certain retail sites located primarily in California consummated on or about May 1, 2007 pursuant
to that certain Purchase and Sale Agreement and Joint Escrow Instructions, dated as of January 26,
2007, by and among Tesoro Refining and Marketing Company and USA Petroleum Corporation, USA
Gasoline Corporation, Palisades Gas and Wash, Inc. and USA San Diego LLC.

     “2007 Shell Acquisition” means the purchase by the Borrower from Equilon Enterprises LLC
(d/b/a Shell Oil Products US) of a refinery and a products terminal, each located in California,
and certain retail sites located primarily in California and other related assets pursuant to (i)
that certain Asset Purchase and Sale Agreement, dated as of January 29, 2007 by and between Equilon
Enterprises LLC d/b/a Shell Oil Products US as “Seller” and Tesoro Refining and Marketing Company
as “Buyer” for the purchase and sale of the “Shell Los Angeles Refinery” and other related assets
described therein located in Los Angeles, California and Wilmington California, (ii) that certain
Asset Purchase and Sale Agreement, dated as of January 29, 2007 by and between Equilon Enterprises
LLC d/b/a Shell Oil Products US as “Seller” and Tesoro Refining and Marketing Company as “Buyer”
for the purchase and sale of certain retail services stations in and around the state of California
and other related assets as described therein, and (iii) any and all amendments, schedules or other
documents related thereto.

     “Type” means, with respect to any Advance, its nature as a Floating Rate Advance or a
Eurodollar Advance and, with respect to any Loan, its nature as a Floating Rate Loan or a
Eurodollar Loan.

     “Unfunded Liabilities” means the amount, if any, by which the current liability as shown on
line 1d(2)(a) of the most recently filed Schedule B of Form 5500 under each Single Employer Plan
subject to Title IV of ERISA exceeds the fair market value of all such Plan’s assets allocable to
such benefits, all determined as of the then most recent valuation date for such Plan for which a
Schedule B is available.

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     “Unmatured Default” means an event which but for the lapse of time or the giving of notice, or
both, would constitute a Default.

     “US GAAP” means generally accepted accounting principles as in effect in the United States
from time to time.

     “U.S.” and “United States” means the United States of America.

     “Wholly-Owned Subsidiary” of a Person means (i) any Subsidiary all of the outstanding voting
securities of which shall at the time be owned or controlled, directly or indirectly, by such
Person or one or more Wholly-Owned Subsidiaries of such Person, or by such Person and one or more
Wholly-Owned Subsidiaries of such Person, or (ii) any partnership, limited liability company,
association, joint venture or similar business organization 100% of the ownership interests having
ordinary voting power of which shall at the time be so owned or controlled.

     1.2. Plural Forms. The foregoing definitions shall be equally applicable to both the
singular and plural forms of the defined terms.

ARTICLE II

THE CREDITS

     2.1. Commitments; Loans.

     2.1.1 Revolving Loans. From and including the Closing Date and prior to the
Termination Date, upon the satisfaction of the conditions precedent set forth in Sections
4.1 and 4.2, as applicable, each Lender severally and not jointly agrees, on the terms and
conditions set forth in this Agreement, to (i) make Revolving Loans to the Borrower from
time to time and (ii) participate in Facility LCs issued upon the request of the Borrower,
in each case in an amount not to exceed in the aggregate at any one time outstanding of its
Pro Rata Share of the Available Aggregate Revolving Loan Commitment; provided that,
unless caused by a Collateral Protection Advance, at no time shall the Aggregate Outstanding
Credit Exposure hereunder exceed the Borrowing Base and at no time shall the Aggregate
Outstanding Credit Exposure exceed the Aggregate Revolving Loan Commitment. Subject to the
terms of this Agreement, the Borrower may borrow, repay and reborrow Revolving Loans at any
time prior to the Termination Date. The commitment of each Lender to lend hereunder shall
automatically expire on the Termination Date. Each LC Issuer will issue Facility LCs
hereunder on the terms and conditions set forth in Section 2.19.

     2.1.2 Collateral Protection Advances. Subject to the limitations set forth
below, the Agent is authorized by the Borrower and the Lenders, from time to time in the
Agent’s sole discretion, (i) during the existence of a Default or an Unmatured Default, or
(ii) at any time that any of the other conditions precedent set forth in Article IV have not
been satisfied, to make Advances (each such advance to be a Floating Rate Advance) to the
Borrower on behalf of the Lenders in an aggregate amount outstanding at any time not to
exceed $50,000,000 which the Agent, in its reasonable business judgment, deems necessary or
desirable (A) to preserve or protect the Collateral, or any portion thereof, (B)

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to enhance the likelihood of, or maximize the amount of, repayment of the Secured Obligations, or (C)
to pay any other amount chargeable to or required to be paid by the Borrower pursuant to the
terms of this Agreement, including costs, fees, and expenses as described in Section 9.6
(any of such Advances are herein referred to as “Collateral Protection Advances”);
provided that the Required Lenders may at any time revoke the Agent’s authorization
to make Collateral Protection Advances. Any such revocation must be in writing and shall
become effective prospectively upon the Agent’s receipt thereof. Absent such revocation,
the Agent’s determination that the making of a Collateral Protection Advance is required for
any such purposes shall be conclusive. The Collateral Protection Advances shall be secured
by the Liens in favor of the Agent in and to the Collateral and shall constitute Secured
Obligations hereunder. Each Lender shall participate in each Collateral Protection Advance
in an amount equal to its Pro Rata Share thereof. No Collateral Protection Advance shall be
made hereunder if the result thereof causes (i) the Aggregate Outstanding Credit Exposure to
exceed the Aggregate Revolving Loan Commitment or (ii) any Lender’s Pro Rata Share thereof
to exceed such Lender’s Revolving Loan Commitment.

     2.1.3 Making of Non-Ratable Loans. If the Agent elects to have the terms of
this Section 2.1.3 apply to a Floating Rate Advance requested by the Borrower in order to
fund such Floating Rate Advance pursuant to this Section 2.1.3 instead of Section 2.7, the
Non-Ratable Lender shall make a Floating Rate Advance in the amount requested available to
the Borrower on the applicable Borrowing Date by transferring same day funds to the
Borrower’s funding account. Each Advance made solely by the Non-Ratable Lender pursuant to
this Section 2.1.3 is referred to in this Agreement as a “Non-Ratable Loan,” and
such Advances are referred to as the “Non-Ratable Loans.” Each Non-Ratable Loan
shall be subject to all the terms and conditions applicable to other Advances funded by the
Lenders, except that all payments thereon shall be payable to the Non-Ratable Lender solely
for its own account. The Agent shall not request the Non-Ratable Lender to make any
Non-Ratable Loan if (A) the Agent has received written notice from any Lender that one or
more of the applicable conditions precedent set forth in Article IV will not be
satisfied on the requested Borrowing Date for the applicable Non-Ratable Loan, or (B) the
requested Non-Ratable Loan exceeds the Available Aggregate Revolving Loan Commitment (before
giving effect to such Non-Ratable Loan) or would cause the Aggregate Outstanding Credit
Exposure (after giving effect to such Non-Ratable Loan) to exceed the Borrowing Base on the
applicable Borrowing Date, or would cause the Aggregate Outstanding Credit Exposure (after
giving effect to such Non-Ratable Loan) to exceed the Aggregate Revolving Loan Commitment on
the applicable Borrowing Date. The Non-Ratable Loans shall be secured by the Liens granted
to the Agent in and to the Collateral and shall constitute Secured Obligations hereunder.
All Non-Ratable Loans shall be Floating Rate Advances. Each Lender shall participate in
each Non-Ratable Loan in an amount equal to its Pro Rata Share thereof.

     2.2. Required Payments; Termination.

     2.2.1 Generally. Any outstanding Advances and all other unpaid Secured
Obligations shall be paid in full by the Borrower on the Termination Date. Notwithstanding
the termination of the Revolving Loan Commitments under this

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     Agreement on the Termination
Date, until all of the Secured Obligations (other than contingent indemnity obligations)
shall have been fully paid and satisfied and all financing arrangements among the Borrower
and the Lenders hereunder and under the other Loan Documents shall have been terminated, all
of the rights and remedies under this
Agreement and the other Loan Documents shall survive.
In addition to the other mandatory prepayments required under this Agreement, if at any time
and for any reason, including, without limitation, as a result of the reduction of the
Aggregate Revolving Loan Commitment or a fluctuation of the Borrowing Base, the Aggregate
Outstanding Credit Exposure exceeds the Borrowing Base, the Borrower shall immediately make
a mandatory prepayment of the Secured Obligations in an amount equal to such excess.

     2.2.2 Asset Sales; Insurance Proceeds. Upon the consummation by the Borrower
or any Subsidiary of any sale of any Property constituting Collateral (other than sales
permitted under Sections 6.12.1 and 6.12.2), in each case except to the extent that the Net
Cash Proceeds of such sale, when combined with the Net Cash Proceeds of all such sales
during the immediately preceding twelve-month period, do not exceed $50,000,000 for any such
sale or series of related sales, within three (3) Business Days after the Borrower’s or any
of its Subsidiaries’ receipt of any Net Cash Proceeds from any such sale, or upon the
Borrower’s receipt of Net Cash Proceeds under any insurance policy covering Collateral (but
in no event under any insurance policy not covering Collateral) as contemplated in Section
6.24, the Borrower shall make a mandatory prepayment of the outstanding principal amount of
the Revolving Loans in the amount of such Net Cash Proceeds. Such mandatory prepayment
shall be applied in accordance with Section 2.2.5.

     2.2.3 Intentionally Omitted]

     2.2.4 Effect on Aggregate Revolving Loan Commitment. No prepayment described
in Sections 2.2.2 shall result in a reduction of the Aggregate Revolving Loan Commitment and
the Borrower may request an Advance immediately after such prepayment so long as the terms
and conditions hereunder for an Advance have been satisfied.

     2.2.5 Application and Priority of Mandatory Prepayments. The Borrower shall
remit a prepayment to the Agent in the amount of any Net Cash Proceeds described in Section
2.2.2 on the dates required under such Sections. The Agent shall deposit such prepayment in
a Collection Account or another cash collateral account subject to the Agent’s sole control
and shall apply such prepayment to the Revolving Loans. Any portion of such prepayment
remaining thereafter shall be returned to the Borrower for general corporate purposes. With
respect to the reduction of the Revolving Loans on any date, prepayments made under Section
2.2.2 shall first be applied to Floating Rate Loans and to any Eurodollar Rate Loans
maturing on such date and then to subsequently maturing Eurodollar Rate Loans in order of
maturity.

     2.3. Ratable Loans; Types of Advances. (a) Each Advance hereunder (other than a
Non-Ratable Loan or a Collateral Protection Advance) shall consist of Revolving Loans made from the
several Lenders ratably in proportion to the ratio that their respective Revolving Loan Commitments
bear to the Aggregate Revolving Loan Commitment.

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          (b) The Advances may be Floating Rate Advances or Eurodollar Advances, or a combination
thereof, selected by the Borrower in accordance with Sections 2.7 and 2.8, or Non-Ratable Loans
selected by the Borrower in accordance with Section 2.1.3.

     2.4. Commitment Fee; Aggregate Revolving Loan Commitment.

     2.4.1 Commitment Fee. The Borrower shall pay to the Agent, for the account of
the Lenders with Revolving Loan Commitments in accordance with their Pro Rata Shares of the
Aggregate Revolving Loan Commitment, from and after the Closing Date until the date on which
the Aggregate Revolving Loan Commitment shall be terminated in whole, a commitment fee (the
“Commitment Fee”) accruing daily at the rate of the then Applicable Fee Rate on the
Aggregate Revolving Loan Commitment minus the Aggregate Outstanding Revolving Loan Credit
Exposure, each as in effect from time to time. All such Commitment Fees payable hereunder
shall be payable quarterly in arrears on each Payment Date.

     2.4.2 Closing Fees. The Borrower shall pay on the Closing Date those closing
fees described in (i) the fee letter dated May 9, 2007 by and among the Borrower, the Agent
and the Arrangers, as amended or modified from time to time and (ii) the fee letter dated
May 9, 2007 by and between the Borrower and the Agent, as amended or modified from time to
time.

     2.4.3 Reductions in Aggregate Revolving Loan Commitment. The Borrower may
permanently reduce the Aggregate Revolving Loan Commitment to $0. The Borrower may
permanently reduce the Aggregate Revolving Loan Commitment from the amount of $1,750,000,000
(or from such higher amount if the Aggregate Revolving Loan Commitment has been increased
pursuant to Section 2.20) by $100,000,000 in integral multiples of $10,000,000. No other
optional reduction of the Aggregate Revolving Loan Commitment by the Borrower is permitted
hereunder. Any such permitted reduction may only occur upon at least three (3) Business
Days’ written notice to the Agent, which notice shall specify the amount of any such
reduction, provided, however, that the amount of the Aggregate Revolving
Loan Commitment may not be reduced below the Aggregate Outstanding Credit Exposure. All
accrued Commitment Fees shall be payable on the effective date of any termination of the
obligations of the Lenders to make Credit Extensions hereunder and on the final date upon
which all Loans are repaid.

     2.5. Minimum Amount of Each Advance. Each Eurodollar Advance shall be in the minimum
amount of $1,000,000 (and in multiples of $500,000 if in excess thereof), and each Floating Rate
Advance (other than an Advance to repay Non-Ratable Loans or Collateral Protection Advances) shall
be in the minimum amount of $100,000 (and in multiples of $50,000 if in excess thereof),
provided, however, that any Floating Rate Advance may be in the amount of the
Available Aggregate Revolving Loan Commitment.

     2.6. Optional Principal Payments. The Borrower may from time to time pay, without
penalty or premium, all outstanding Floating Rate Advances, or any portion of the outstanding
Floating Rate Advances. The Borrower may from time to time pay, subject to the payment of any
funding indemnification amounts required by Section 3.4 but without penalty or premium,

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	all
outstanding Eurodollar Advances, or, in a minimum aggregate amount of $1,000,000 or any integral
multiple of $500,000 in excess thereof, any portion of the outstanding Eurodollar Advances upon
three (3) Business Days’ prior notice to the Agent.

     2.7. Method of Selecting Types and Interest Periods for New Advances. The Borrower
shall select the Type of Advance and, in the case of each Eurodollar Advance, the Interest Period
applicable thereto from time to time; provided that there shall be no more than 8 Interest
Periods in effect with respect to all of the Loans at any time, unless such limit has been waived
by the Agent in its sole discretion. The Borrower shall give the Agent irrevocable notice (a
“Borrowing Notice”) not later than 12:00 noon (Chicago time) on the Borrowing Date of each
Floating Rate Advance (other than a Non-Ratable Loan) and three Business Days before the Borrowing
Date for each Eurodollar Advance, specifying:

	 	(i)	 	the Borrowing Date, which shall be a Business Day, of such Advance,
	 
	 	(ii)	 	the aggregate amount of such Advance,
	 
	 	(iii)	 	the Type of Advance selected, and
	 
	 	(iv)	 	in the case of each Eurodollar Advance, the Interest Period applicable thereto.

Not later than 2:00 p.m. (Chicago time) on each Borrowing Date, each Lender shall make available
its Loan or Loans in Federal or other funds immediately available in Chicago to the Agent at its
address specified pursuant to Article XIII. The Agent will promptly make the funds so received
from the Lenders available to the Borrower at the Agent’s aforesaid address.

     2.8. Conversion and Continuation of Outstanding Advances; No Conversion or Continuation of
Eurodollar Advances After Default. Floating Rate Advances (other than Non-Ratable Loans) shall
continue as Floating Rate Advances unless and until such Floating Rate Advances are converted into
Eurodollar Advances pursuant to this Section 2.8 or are repaid in accordance with Section 2.6.
Each Eurodollar Advance shall continue as a Eurodollar Advance until the end of the then applicable
Interest Period therefor, at which time such Eurodollar Advance shall be automatically converted
into a Floating Rate Advance unless (x) such Eurodollar Advance is or was repaid in accordance with
Section 2.6 or (y) the Borrower shall have given the Agent a Conversion/Continuation Notice (as
defined below) requesting that, at the end of such Interest Period, such Eurodollar Advance
continue as a Eurodollar Advance for the same or another Interest Period. Subject to the terms of
Section 2.5, the Borrower may elect from time to time to convert all or any part of an Advance of
any Type (other than a Non-Ratable Loan) into any other Type or Types of Advances; provided
that any conversion of any Eurodollar Advance shall be made on, and only on, the last day of the
Interest Period applicable thereto. Notwithstanding anything to the contrary contained in this
Section 2.8, during the continuance of a Default or an Unmatured Default, the Agent may (or shall
at the direction of the Required Lenders), by notice to the Borrower, declare that no Advance may
be made, converted or continued as a Eurodollar Advance. The Borrower shall give the Agent
irrevocable notice (a “Conversion/Continuation Notice”) of each conversion of an Advance or
continuation of a Eurodollar Advance not later than 11:00 a.m. (Chicago time) at least one (1)
Business Day, in the case of a conversion into a Floating Rate Advance, or three (3) Business Days,
in the case of

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a conversion into or continuation of a Eurodollar Advance, prior to the date of the
requested conversion or continuation, specifying:

	 	(i)	 	the requested date, which shall be a Business Day, of such conversion or
continuation,
	 
	 	(ii)	 	the aggregate amount and Type of the Advance which is to be converted or
continued, and
	 
	 	(iii)	 	the amount of such Advance which is to be converted into or continued as a
Eurodollar Advance and the duration of the Interest Period applicable thereto.

     2.9. Changes in Interest Rate, etc. Each Floating Rate Advance (other than a
Non-Ratable Loan) shall bear interest on the outstanding principal amount thereof, for each day
from and including the date such Advance is made or is automatically converted from a Eurodollar
Advance into a Floating Rate Advance pursuant to Section 2.8, to but excluding the date it is paid
or is converted into a Eurodollar Advance pursuant to Section 2.8 hereof, at a rate per annum equal
to the Floating Rate for such day. Changes in the rate of interest on that portion of any Advance
maintained as a Floating Rate Advance will take effect simultaneously with each change in the
Alternate Base Rate. Each Eurodollar Advance shall bear interest on the outstanding principal
amount thereof from and including the first day of the Interest Period applicable thereto to (but
not including) the last day of such Interest Period at the Eurodollar Rate determined by the Agent
as applicable to such Eurodollar Advance based upon the Borrower’s selections under Sections 2.7
and 2.8 and otherwise in accordance with the terms hereof. No Interest Period with respect to
Revolving Loans may end after the Termination Date.

     2.10. Rates Applicable After Default. During the continuance of a Default (including
the Borrower’s failure to pay any Loan at maturity), the Agent or the Required Lenders may, at
their option, by notice to the Borrower (which notice may be revoked at the option of the Required
Lenders notwithstanding any provision of Section 8.2 requiring unanimous consent of the Lenders to
changes in interest rates), declare that (i) each Eurodollar Advance shall bear interest at the
rate otherwise applicable to such Interest Period plus 2% per annum, (ii) each Floating
Rate Advance shall bear interest at a rate per annum equal to the Floating Rate in effect from time
to time plus 2% per annum and (iii) the LC Fee shall be increased by 2% per annum;
provided that, during the continuance of a Default under Section 7.6 or 7.7, the interest
rates set forth in clauses (i) and (ii) above and the increase in the LC Fee set forth in clause
(iii) above shall be applicable to all Credit Extensions, Advances, fees and other Obligations
hereunder without any election or action on the part of the Agent or any Lender.

     2.11. Method of Payment; Settlement.

     2.11.1 Method of Payment. All payments of the Obligations hereunder shall be
made, without setoff, deduction, or counterclaim, in immediately available funds to the
Agent at the Agent’s address specified pursuant to Article XIII, or at any other Lending
Installation of the Agent specified in writing by the Agent to the Borrower, by 12:00 p.m.
(Chicago time) on the date when due and shall (except in the case of Reimbursement
Obligations for which the applicable LC Issuer has not been fully indemnified by the

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Lenders, or as otherwise specifically required hereunder) be applied ratably by the Agent
among the Lenders. Each payment delivered to the Agent for the account of any Lender shall
be delivered promptly by the Agent to such Lender in the same type of funds that the Agent
received at its address specified pursuant to Article XIII or at any Lending Installation
specified in a notice received by the Agent from such Lender. The Agent is hereby
authorized to charge the account of the Borrower maintained with JPMorgan for each payment
of the Obligations as it becomes due hereunder. Subject to the terms and conditions of
Section 6.25, the Agent is also hereby authorized to charge each Collection Account into
which Receivables collections and other proceeds of Collateral are deposited. Subject to
the terms and conditions of Section 6.25, the Agent shall apply such amounts on a daily
basis to reduce outstanding Obligations. For purposes of computing interest, fees and the
Available Aggregate Revolving Loan Commitment as of any date, (x) all amounts constituting
immediately available goods funds shall be deemed received by the Agent on the Business Day
on which such amounts are deposited into one of the aforementioned Collection Accounts
maintained with JPMorgan or an Affiliate thereof, and (y) all amounts not constituting
immediately available good funds shall be deemed received by the Agent on the first Business
Day following the Business Day on which such amounts are deposited into one of the
aforementioned Collection Accounts maintained with JPMorgan or an Affiliate thereof. In the
event any such amount is applied and the payment item evidencing such amount is subsequently
dishonored, returned for insufficient funds, required to be returned to the applicable
Account Debtor, or required to be remitted to a Person other than the Agent or a Lender, the
Obligations shall be increased by the amount originally applied in reduction thereof and
interest shall be deemed to have accrued on such amount from the Business Day on which such
amount was originally credited as a reduction of the Obligations through the Business Day on
which such amount is repaid. The Borrower shall also be required to pay any fees that would
have accrued during such period had such amount not been deemed paid during such period.
Each reference to the Agent in this Section 2.11 shall also be deemed to refer, and shall
apply equally, to each LC Issuer in the case of payments required to be made by the Borrower
to such LC Issuer pursuant to Section 2.19.6.

     2.11.2 Settlement. (a) Each Lender’s funded portion of any Advance is
intended by the Lenders to be equal at all times to such Lender’s Pro Rata Share of such
Advance; provided, however, that for purposes of this Section 2.11.2 and all
other applicable provisions of this Agreement, only Lenders with Revolving Loan Commitments
shall participate in Collateral Protection Advances and Non-Ratable Loans in amounts equal
to their respective Pro Rata Shares thereof. Notwithstanding such agreement, the Agent, the
Non-Ratable Lender (with respect to the Non-Ratable Loans), and the Lenders agree (which
agreement shall not be for the benefit of or enforceable by the Borrower) that in order to
facilitate the administration of this Agreement and the other Loan Documents, settlement
among them as to any Advance, including the Non-Ratable Loans and the Collateral Protection
Advances, shall take place on a periodic basis in accordance with this Section 2.11.2.

     (b) The Agent shall request settlement (a “Settlement”) with the Lenders on at
least a weekly basis, or on a more frequent basis at the Agent’s election, (A) on behalf of
the Non-Ratable Lender, with respect to each outstanding Non-Ratable Loan, (B) for

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itself, with respect to each Collateral Protection Advance, and (C) with respect to collections
received, in each case, by notifying the Lenders of such requested Settlement by telephone
or facsimile, no later than 12:30 p.m. (Chicago time) on the date of such requested
Settlement (the “Settlement Date”). Each Lender (other than the Non-Ratable Lender,
in the case of the Non-Ratable Loans, and the Agent in the case of the Collateral Protection
Advances) shall transfer the amount of such Lender’s Pro Rata Share of the outstanding
principal amount of the applicable Advances with respect to which Settlement is requested to
the Agent, to such account of the Agent as the Agent may designate, not later than 2:30 p.m.
(Chicago time), on the Settlement Date applicable thereto. Settlements may occur during the
existence of a Default or an Unmatured Default and whether or not the applicable conditions
precedent set forth in Article IV have then been satisfied. Such amounts
transferred to the Agent shall be applied against the amounts of the applicable Non-Ratable
Loan or Collateral Protection Advance and, together with the portion of such Non-Ratable
Loan or Collateral Protection Advance representing the Non-Ratable Lenders or the Agent’s
Pro Rata Share thereof, shall constitute Revolving Loans of such Lenders, respectively. If
any such amount is not transferred to the Agent by any Lender on the Settlement Date
applicable thereto, the Agent shall be entitled to recover such amount on demand from such
Lender together with interest thereon at the Alternate Base Rate for the first three days
from and after the Settlement Date and thereafter at the then applicable Floating Rate (1)
on behalf of the Non-Ratable Lender with respect to each outstanding Non-Ratable Loan and
(2) for itself with respect to each Collateral Protection Advance.

     (c) Notwithstanding the foregoing, not more than one Business Day after demand is made
by the Agent (whether before or after the occurrence of a Default or an Unmatured Default
and regardless of whether the Agent has requested a Settlement with respect to a Non-Ratable
Loan or Collateral Protection Advance), each other Lender (A) shall irrevocably and
unconditionally purchase and receive from the Non-Ratable Lender or the Agent, as
applicable, without recourse or warranty, an undivided interest and participation in such
Non-Ratable Loan or Collateral Protection Advance equal to such Lender’s Pro Rata Share of
such Non-Ratable Loan or Collateral Protection Advance, and (B) if Settlement has not
previously occurred with respect to such Non-Ratable Loans or Collateral Protection
Advances, upon demand by the Agent or the Non-Ratable Lender, as applicable, shall pay to
the Agent or the Non-Ratable Lender, as applicable, as the purchase price of such
participation an amount equal to 100% of such Lender’s Pro Rata Share of such Non-Ratable
Loans or Collateral Protection Advances. If such amount is not in fact transferred to the
Agent or the Non-Ratable Lender, as applicable, by any Lender, the Agent shall be entitled
to recover such amount on demand from such Lender together with interest thereon at the
Alternate Base Rate for the first three days from and after such demand and thereafter at
the then applicable Floating Rate.

     (d) From and after the date, if any, on which any Lender purchases an undivided
interest and participation in any Non-Ratable Loan or Collateral Protection Advance pursuant
to Section 2.11.2(c), the Agent shall promptly distribute to such Lender such Lender’s Pro
Rata Share of all payments of principal and interest and all proceeds of Collateral received
by the Agent in respect of such Non-Ratable Loan or Collateral Protection Advance.

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     (e) Between Settlement Dates, to the extent no Collateral Protection Advances are
outstanding, the Agent may pay over to the Non-Ratable Lender any payments received by the
Agent, which in accordance with the terms of this Agreement would be applied to the
reduction of the Revolving Loans, for application to the Non-Ratable Lender’s Revolving
Loans including Non-Ratable Loans. If, as of any Settlement Date, collections received
since the then immediately preceding Settlement Date have been applied to the Non-Ratable
Lender’s Revolving Loans (other than to Non-Ratable Loans or Collateral Protection Advances
in which a Lender has not yet funded its purchase of a participation pursuant to Section
2.11.2(c)), as provided for in the previous sentence, the Non-Ratable Lender shall pay to
the Agent for the accounts of the Lenders, to be applied to the outstanding Revolving Loans
of such Lenders, an amount such that each Lender shall, upon receipt of such amount, have,
as of such Settlement Date, its Pro Rata Share of the Revolving Loans. Subject to Section
2.11.1, during the period between Settlement Dates, the Non-Ratable Lender with respect to
Non-Ratable Loans, the Agent with respect to Collateral Protection Advances, and each Lender
with respect to the Revolving Loans other than Non-Ratable Loans and Collateral Protection
Advances, in each case ratably in accordance with the funds employed by each of them, shall
be entitled to interest at the applicable rate or rates payable under this Agreement on the
actual average daily amount of funds employed by the Non-Ratable Lender, the Agent, and the
other Lenders.

     2.12. Noteless Agreement; Evidence of Indebtedness. (i) Each Lender shall maintain
in accordance with its usual practice an account or accounts evidencing the indebtedness of the
Borrower to such Lender resulting from each Loan made by such Lender from time to time, including
the amounts of principal and interest payable and paid to such Lender from time to time hereunder.

	 	(ii)	 	The Agent shall also maintain accounts in which it will record (a) the date and
the amount of each Loan made hereunder, the Type thereof and the Interest Period (in
the case of a Eurodollar Advance) with respect thereto, (b) the amount of any principal
or interest due and payable or to become due and payable from the Borrower to each
Lender hereunder, (c) the original stated amount of each Facility LC and the amount of
LC Obligations outstanding at any time, (d) the effective date and amount of each
Assignment Agreement delivered to and accepted by it and the parties thereto pursuant
to Section 12.3, (e) the amount of any sum received by the Agent hereunder from the
Borrower and each Lender’s share thereof, and (f) all other appropriate debits and
credits as provided in this Agreement, including, without limitation, all fees,
charges, expenses and interest.
	 
	 	(iii)	 	The entries maintained in the accounts maintained pursuant to paragraphs (i)
and (ii) above shall be prima facie evidence of the existence and amounts of the
Obligations therein recorded; provided, however, that the failure of
the Agent or any Lender to maintain such accounts or any error therein shall not in any
manner affect the obligation of the Borrower to repay the Obligations in accordance
with their terms.

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	 	(iv)	 	Any Lender may request that its Revolving Loans be evidenced by a promissory
note in substantially the form of Exhibit E (a “Note”). In such event, the
Borrower shall prepare, execute and deliver to such Lender the appropriate Note payable
to the order of such Lender. Thereafter, the Loans evidenced by such Note and interest
thereon shall at all times (prior to any assignment pursuant to Section 12.3) be
represented by one or more Notes payable to the order of the payee named therein,
except to the extent that any such Lender subsequently returns any such Note for
cancellation and requests that such Loans once again be evidenced as described in
paragraphs (i) and (ii) above.

     2.13. Telephonic Notices. The Borrower hereby authorizes the Lenders and the Agent to
extend, convert or continue Advances, effect selections of Types of Advances and to transfer funds
based on telephonic notices made by any person or persons the Agent or any Lender in good faith
believes to be acting on behalf of the Borrower, it being understood that the foregoing
authorization is specifically intended to allow Borrowing Notices and Conversion/Continuation
Notices to be given telephonically. The Borrower agrees to deliver promptly to the Agent a written
confirmation, signed by an Authorized Officer, if such confirmation is requested by the Agent or
any Lender, of each telephonic notice. If the written confirmation differs in any material respect
from the action taken by the Agent and the Lenders, the records of the Agent and the Lenders shall
govern absent manifest error.

     2.14. Payments of Interest.

     2.14.1 Interest Payment Dates; Interest and Fee Basis. With respect to all
Advances, interest shall be payable as follows. Interest accrued on each Floating Rate
Advance shall be payable in arrears on each Payment Date, commencing with the first such
date to occur after the Closing Date, and at maturity, whether due to acceleration or
otherwise. Interest accrued on each Eurodollar Advance shall be payable on the last day of
its applicable Interest Period, on any date on which the Eurodollar Advance is prepaid,
whether by acceleration or otherwise, and at maturity. Interest accrued on each Eurodollar
Advance having an Interest Period longer than three months shall also be payable on the last
day of each three-month interval during such Interest Period. Interest on Eurodollar
Advances, LC Fees and all other fees hereunder shall be calculated for actual days elapsed
on the basis of a 360-day year. Interest on Floating Rate Advances shall be calculated for
actual days elapsed on the basis of a 365/366-day year. Interest shall be payable for the
day an Advance is made but not for the day of any payment (unless payment is on the same
date as the Advance) on the amount paid if payment is received prior to 12:00 p.m. (Chicago
time) at the place of payment. If any payment of principal of or interest on an Advance,
any fees or any other amounts payable to the Agent or any Lender hereunder shall become due
on a day which is not a Business Day, such payment shall be made on the next succeeding
Business Day and, in the case of a principal payment, such extension of time shall be
included in computing interest, fees and commissions in connection with such payment.

     2.14.2 Limitation on Interest. The Borrower, the Agent and the Holders of
Secured Obligations intend to strictly comply with all applicable laws, including applicable
usury laws. Accordingly, the provisions of this Section 2.14.2 shall govern

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and control
over every other provision of this Agreement or any other Loan Document which conflicts or
is inconsistent with this Section 2.14.2, even if such provision declares that it controls.
As used in this Section 2.14.2, the term “interest” includes the aggregate of all charges,
fees, benefits, or other compensation which constitute interest under applicable law,
provided that, to the maximum extent permitted by applicable law, (a) any
non-principal payment shall be characterized as an expense or as compensation for something
other than the use, forbearance, or detention of money and not as interest and (b) all
interest at any time contracted for, reserved, charged, or received shall be amortized,
prorated, allocated, and spread, in equal parts during the full term of the Secured
Obligations. In no event shall the Borrower or any other Person be obligated to pay, or any
Holder of Secured Obligations have any right or privilege to reserve, receive, or retain,
(i) any interest in excess of the maximum amount of nonusurious interest permitted under the
laws of the State of New York or the applicable laws (if any) of the U.S. or of any other
applicable state or (ii) total interest in excess of the amount which such Holder of Secured
Obligations could lawfully have contracted for, reserved, received, retained, or charged had
the interest been calculated for the full term of the Secured Obligations at the Highest
Lawful Rate. On each day, if any, that the interest rate (the “Stated Rate”) called
for under this Agreement or any other Loan Document exceeds the Highest Lawful Rate, the
rate at which interest shall accrue shall automatically be fixed by operation of this
sentence at the Highest Lawful Rate for that day, and shall remain fixed at the Highest
Lawful Rate for each day thereafter until the total amount of interest accrued equals the
total amount of interest which would have accrued if there were no such ceiling rate as is
imposed by this sentence. Thereafter, interest shall accrue at the Stated Rate unless and
until the Stated Rate again exceeds the Highest Lawful Rate when the provisions of the
immediately preceding sentence shall again automatically operate to limit the interest
accrual rate. The daily interest rates to be used in calculating interest at the Highest
Lawful Rate shall be determined by dividing the applicable Highest Lawful Rate per annum by
the number of days in the calendar year for which such calculation is being made. None of
the terms and provisions contained in this Agreement or in any other Loan Document which
directly or indirectly relate to interest shall ever be construed without reference to this
Section 2.14.2, or be construed to create a contract to pay for the use, forbearance, or
detention of money at an interest rate in excess of the Highest Lawful Rate. If the term of
any Secured Obligation is shortened by reason of acceleration of maturity as a result of any
Default or by any other cause, or by reason of any required or permitted prepayment, and if
for that (or any other) reason any Holder of Secured Obligations at any time, including but
not limited to, the stated maturity, is owed or receives (and/or has received) interest in
excess of interest calculated at the Highest Lawful Rate, then and in any such event all of
any such excess interest shall be canceled automatically as of the date of such
acceleration, prepayment, or other event which produces the excess, and, if such excess
interest has been paid to such Holder of Secured Obligations, it shall be credited pro tanto
against the then outstanding principal balance of the Borrower’s obligations to such Holder
of Secured Obligations, effective as of the date or dates when the event occurs which causes
it to be excess interest, until such excess is exhausted or all of such principal has been
fully paid and satisfied, whichever occurs first, and any remaining balance of such excess
shall be promptly refunded to its payor. Chapter 346 of the Texas Finance Code (which
regulates

39

 

certain revolving credit accounts (formerly Tex. Rev. Civ. Stat. Ann. Art. 5069,
Ch. 15)) shall not apply to this Agreement or to any Loan, nor shall this Agreement or any
Loan be governed by or be subject to the provisions of such Chapter 346 in any manner
whatsoever.

     2.15. Notification of Advances, Interest Rates, Prepayments and Revolving Loan Commitment
Reductions; Availability of Loans. Promptly after receipt thereof, the Agent will notify each
Lender of the contents of each Aggregate Revolving Loan Commitment reduction notice, Borrowing
Notice, Conversion/Continuation Notice, and repayment notice received by it hereunder. Promptly
after notice from the applicable LC Issuer, the Agent will notify each Lender of the contents of
each request for issuance of a Facility LC hereunder. The Agent will notify the Borrower and each
Lender of the interest rate applicable to each Eurodollar Advance promptly upon determination of
such interest rate and will give the Borrower and each Lender prompt notice of each change in the
Alternate Base Rate. Not later than 2:00 p.m. (Chicago time) on each Borrowing Date, each Lender
shall make available its Loan or Revolving Loans in funds immediately available in Chicago to the
Agent at its address specified pursuant to Article XIII. The Agent will promptly make the funds so
received from the Lenders available to the Borrower at the Agent’s aforesaid address.

     2.16. Lending Installations. Each Lender may book its Loans and its participation in
any LC Obligations and other Obligations and each LC Issuer may book its Facility LCs at any
Lending Installation selected by such Lender or such LC Issuer, as applicable, and may change its
Lending Installation from time to time. All terms of this Agreement shall apply to any such
Lending Installation and the Loans, Facility LCs, and participations in LC Obligations and other
Obligations, and any Notes issued hereunder shall be deemed held by each Lender or the relevant LC
Issuer, for the benefit of any such Lending Installation. Each Lender and each LC Issuer may, by
written notice to the Agent and the Borrower in accordance with Article XIII, designate replacement
or additional Lending Installations through which Loans will be made by it or Facility LCs will be
issued by it and for whose account Loan payments or payments with respect to Facility LCs are to be
made.

     2.17. Non-Receipt of Funds by the Agent. Unless the Borrower or a Lender, as the case
may be, notifies the Agent prior to the date on which it is scheduled to make payment to the Agent
of (i) in the case of a Lender, the proceeds of a Loan or (ii) in the case of the Borrower, a
payment of principal, interest or fees to the Agent for the account of the Lenders, that it does
not intend to make such payment, the Agent may assume that such payment has been made. The Agent
may, but shall not be obligated to, make the amount of such payment available to the intended
recipient in reliance upon such assumption. If such Lender or the Borrower, as the case may be,
has not in fact made such payment to the Agent, the recipient of such payment shall, on demand by
the Agent, repay to the Agent the amount so made available together with interest thereon in
respect of each day during the period commencing on the date such amount was so made available by
the Agent until the date the Agent recovers such amount at a rate per annum equal to (x) in the
case of payment by a Lender, the Federal Funds Effective Rate for such day for the first three days
and, thereafter, the interest rate applicable to the relevant Loan or (y) in the case of payment by
the Borrower, the interest rate applicable to the relevant Loan.

40

 

     2.18. Replacement of Lender. If (i) the Borrower is required pursuant to Section 3.1,
3.2 or 3.5 to make any additional payment to any Lender or if any Lender’s obligation to make or
continue, or to convert Floating Rate Advances into, Eurodollar Advances shall be suspended
pursuant to Section 3.3 or (ii) any Lender refuses to consent to certain proposed amendments,
modifications, waivers, discharges or terminations with respect to this Agreement that require the
consent of all Lenders (or all affected Lenders) pursuant to Section 8.2 and the same have been
approved by the Required Lenders (any Lender described in clause (i) or clause (ii) being an
“Affected Lender”), the Borrower may elect to terminate or replace the Revolving Loan
Commitment of such Affected Lender, provided that no Default shall have occurred and be
continuing at the time of such termination or replacement, and provided further
that, concurrently with such termination or replacement, (i) if the Affected Lender is being
replaced, another bank or other entity which is reasonably satisfactory to the Borrower and the
Agent shall agree, as of such date, to purchase for cash the Outstanding Credit Exposure of the
Affected Lender pursuant to an Assignment Agreement substantially in the form of Exhibit C and to
become a Lender for all purposes under this Agreement and to assume all obligations of the Affected
Lender to be terminated as of such date and to comply with the requirements of Section 12.3
applicable to assignments, and (ii) the Borrower shall pay to such Affected Lender in immediately
available funds on the day of such replacement (A) all interest, fees and other amounts then
accrued but unpaid to such Affected Lender by the Borrower hereunder to and including the date of
termination, including without limitation payments due to such Affected Lender under Sections 3.1,
3.2 and 3.5, and (B) an amount, if any, equal to the payment which would have been due to such
Lender on the day of such replacement under Section 3.4 had the Loans of such Affected Lender been
prepaid on such date rather than sold to the replacement Lender, in each case to the extent not
paid by the purchasing lender and (iii) if the Affected Lender is being terminated, the Borrower
shall pay to such Affected Lender all Obligations due to such Affected Lender (including the
amounts described in the immediately preceding clauses (i) and (ii) plus the outstanding
principal balance of such Affected Lender’s Credit Extensions).

     2.19. Facility LCs.

     2.19.1 Issuance. Each LC Issuer hereby agrees, on the terms and conditions set
forth in this Agreement, to issue standby and commercial letters of credit (each, a
“Facility LC”) and to renew, extend, increase, decrease or otherwise modify each
Facility LC (“Modify,” and each such action, a “Modification”), from time to time
from and including the date of this Agreement and prior to the Termination Date upon the
request of the Borrower or any Subsidiary Guarantor; provided that immediately after
each such Facility LC is issued or Modified, (i) the aggregate amount of the outstanding LC
Obligations shall not exceed the Aggregate Revolving Loan Commitment, (ii) the Aggregate
Outstanding Credit Exposure shall not exceed the Borrowing Base and (iii) the Aggregate
Outstanding Credit Exposure shall not exceed the Aggregate Revolving Loan Commitment. Any
reference in this Section 2.19 to a request for a Facility LC by the Borrower shall be
deemed to include requests by any Subsidiary Guarantor. The Borrower agrees that it is
obligated to satisfy any amount arising under or in connection with Facility LCs issued
hereunder at the request of any Subsidiary Guarantor, including, without limitation, all
Reimbursement Obligations, and that no Facility LC requested by any such Person shall be
issued hereunder unless all conditions to issuance have been satisfied. No Facility LC
shall have an expiry date later than the earlier of (x) the fifth

41

 

Business Day prior to the
Termination Date and (y) one year after its issuance; provided, however,
that any Facility LC with a one-year term may provide for the renewal thereof for additional
one-year periods that do not extend beyond the date referenced in clause (x) hereof.
Schedule 2.19.1 sets forth certain letters of credit issued under the Prior Credit
Agreement. Subject to the satisfaction on the Closing Date of the conditions precedent set
forth in Sections 4.1 and 4.2, such letters of credit shall constitute, on and after the
Closing Date, Facility LCs and shall be subject to and benefit from this Agreement.

     2.19.2 Participations. Upon the issuance or Modification by an LC Issuer of a
Facility LC in accordance with this Section 2.19, such LC Issuer shall be deemed, without
further action by any party hereto, to have unconditionally and irrevocably sold to each
Lender, and each Lender shall be deemed, without further action by any party hereto, to have
unconditionally and irrevocably purchased from such LC Issuer, a participation in such
Facility LC (and each Modification thereof) and the related LC Obligations in proportion to
its Pro Rata Share thereof.

     2.19.3 Notice. Subject to Section 2.19.1, the Borrower shall give the
applicable LC Issuer notice prior to 12:00 noon (Chicago time) at least one Business Day
prior to the proposed date of issuance or Modification of the applicable Facility LC,
specifying the beneficiary, the proposed date of issuance (or Modification) and the expiry
date of such Facility LC, and describing the proposed terms of such Facility LC and the
nature of the transactions proposed to be supported thereby. Upon receipt of such notice,
the applicable LC Issuer shall promptly notify the Agent, and the Agent shall promptly
notify each Lender, of the contents thereof and of the amount of such Lender’s Facility LC
Pro Rata Share of the Lenders’ aggregate participation in such proposed Facility LC. The
issuance or Modification by the applicable LC Issuer of a Facility LC shall, in addition to
the conditions precedent set forth in Article IV (the satisfaction of which the applicable
LC Issuer shall have no duty to ascertain), be subject to the conditions precedent that such
Facility LC shall be satisfactory to the applicable LC Issuer and that the Borrower shall
have executed and delivered such application agreement and/or such other instruments and
agreements relating to such Facility LC as the applicable LC Issuer shall have reasonably
requested (each, a “Facility LC Application”). In the event of any conflict between
the terms of this Agreement and the terms of any Facility LC Application, the terms of this
Agreement shall control.

     2.19.4 LC Fees. The Borrower shall pay to the Agent, for the account of the
Lenders with Revolving Loan Commitments (or, if the Revolving Loan Commitments have
terminated, Outstanding Revolving Loan Credit Exposure) ratably in accordance with their
respective Pro Rata Shares, with respect to issued and outstanding Facility LCs, a letter of
credit fee at a per annum rate equal to the Applicable Margin for Revolving Loans that are
Eurodollar Loans in effect from time to time on the maximum stated amount under such
Facility LCs, with such fee to be payable in arrears on each Payment Date. The Borrower
shall also pay to the applicable LC Issuer for its own account (x) on the first Payment Date
to occur after the issuance of a Facility LC issued by such LC Issuer, a fronting fee in an
amount equal to 0.10% per annum times the face amount of such Facility LC, and (y)
documentary and processing charges in connection

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with the issuance, amendment, cancellation,
negotiation, transfer, or other Modification of and draws under Facility LCs in accordance
with such LC Issuer’s standard schedule for such charges as in effect from time to time.
Each fee described in this Section 2.19.4 shall constitute an “LC Fee”.

     2.19.5 Administration; Reimbursement by Lenders. Upon receipt from the
beneficiary of any Facility LC of any demand for payment under such Facility LC, the
applicable LC Issuer shall notify the Agent and the Agent shall promptly notify the Borrower
and each other Lender as to the amount to be paid by such LC Issuer as a result of such
demand and the proposed payment date (the “LC Payment Date”). The responsibility of
the applicable LC Issuer to the Borrower and each Lender shall be only to determine that the
documents (including each demand for payment) delivered under each Facility LC issued by
such LC Issuer in connection with such presentment shall be in conformity in all material
respects with such Facility LC. Each LC Issuer shall endeavor to exercise the same care in
the issuance and administration of its Facility LCs as it does with respect to letters of
credit in which no participations are granted, it being understood that in the absence of
any gross negligence or willful misconduct by such LC Issuer, each Lender shall be
unconditionally and irrevocably liable without regard to the occurrence of any Default or
any condition precedent whatsoever, to reimburse such LC Issuer on demand for (i) such
Lender’s Pro Rata Share of the amount of each payment made by such LC Issuer under each
Facility LC issued by it to the extent such amount is not reimbursed by the Borrower
pursuant to Section 2.19.6 below, plus (ii) interest on the foregoing amount to be
reimbursed by such Lender, for each day from the date of such LC Issuer’s demand for such
reimbursement (or, if such demand is made after 11:00 a.m. (Chicago time) on such date, from
the next succeeding Business Day) to the date on which such Lender pays the amount to be
reimbursed by it, at a rate of interest per annum equal to the Federal Funds Effective Rate
for the first three days and, thereafter, at a rate of interest equal to the rate applicable
to Floating Rate Advances. The Lenders shall be reimbursed for any payment required under
this Section 2.19.5 to the extent of such Lender’s Facility LC Pro Rata Share, or Pro Rata
Share, as applicable, of any payment made by the Borrower as required under Section 2.19.6.

     2.19.6 Reimbursement by Borrower. The Borrower shall be irrevocably and
unconditionally obligated to reimburse each LC Issuer on or before the applicable LC Payment
Date for any amounts to be paid by such LC Issuer upon any drawing under any Facility LC,
issued by it, without presentment, demand, protest or other formalities of any kind;
provided that neither the Borrower nor any Lender shall hereby be precluded from
asserting any claim for direct (but not consequential) damages suffered by the Borrower or
such Lender to the extent, but only to the extent, caused by (i) the willful misconduct or
gross negligence of such LC Issuer in determining whether a request presented under any
Facility LC issued by it complied with the terms of such Facility LC or (ii) such LC
Issuer’s failure to pay under any Facility LC issued by it after the presentation to it of a
request strictly complying with the terms and conditions of such Facility LC. Subject to
the terms and conditions of this Agreement (including, without limitation, the submission of
a Borrowing Notice in compliance with Section 2.7 and the satisfaction of the applicable
conditions precedent set forth in Article IV), the Borrower may request an Advance hereunder
for the purpose of satisfying any Reimbursement Obligation. All

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such amounts paid by such
LC Issuer and remaining unpaid by the Borrower, shall bear interest payable on demand, for
each day until paid at a rate per annum equal to (x) the rate applicable to Floating Rate
Advances for such day if such day falls on or before the applicable LC Payment Date and (y)
the sum of 2% plus the rate applicable to Floating Rate Advances for such day if
such day falls after such LC Payment Date. The Agent and each LC Issuer will pay to each
Lender ratably in accordance with its Pro Rata Share all amounts received by it from the
Borrower for application in payment, in whole or in part, of the Reimbursement Obligation in
respect of any Facility LC issued by it, but only to the extent such Lender has made payment
to such LC Issuer in respect of such Facility LC pursuant to Section 2.19.5.

     2.19.7 Obligations Absolute. The Borrower’s obligations under this Section
2.19 shall be absolute and unconditional under any and all circumstances and irrespective of
any setoff, counterclaim or defense to payment which the Borrower may have or have had
against any LC Issuer, any Lender or any beneficiary of a Facility LC. The Borrower further
agrees with each LC Issuer and the Lenders that the LC Issuers and the Lenders shall not be
responsible for, and the Borrower’s Reimbursement Obligation in respect of any Facility LC
shall not be affected by, among other things, the validity or genuineness of documents or of
any endorsements thereon, even if such documents should in fact prove to be in any or all
respects invalid, fraudulent or forged, or any dispute between or among the Borrower, any of
its Affiliates, the beneficiary of any Facility LC or any financing institution or other
party to whom any Facility LC may be transferred or any claims or defenses whatsoever of the
Borrower or of any of its Affiliates against the beneficiary of any Facility LC or any such
transferee. No LC Issuer shall 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 Facility LC. The Borrower agrees that any action taken or omitted by
any LC Issuer or any Lender under or in connection with each Facility LC and the related
drafts and documents, if done without gross negligence or willful misconduct, shall be
binding upon the Borrower and shall not put any LC Issuer or any Lender under any liability
to the Borrower. Nothing in this Section 2.19.7 is intended to limit the right of the
Borrower to make a claim against the applicable LC Issuer for damages as contemplated by the
proviso to the first sentence of Section 2.19.6.

     2.19.8 Actions of LC Issuers. Each LC Issuer shall be entitled to rely, and
shall be fully protected in relying, upon any Facility LC issued by it, draft, writing,
resolution, notice, consent, certificate, affidavit, letter, cablegram, telegram, telecopy,
telex or teletype message, statement, order or other document believed by it to be genuine
and correct and to have been signed, sent or made by the proper Person or Persons, and upon
advice and statements of legal counsel, independent accountants and other experts selected
by such LC Issuer. Each LC Issuer shall be fully justified in failing or refusing to take
any action under this Agreement unless it shall first have received such advice or
concurrence of the Required Lenders as it reasonably deems appropriate or it shall first be
indemnified to its reasonable satisfaction by the Lenders against any and all liability and
expense which may be incurred by it by reason of taking or continuing to take any such
action. Notwithstanding any other provision of this Section 2.19, each LC Issuer shall in
all cases be fully protected in acting, or in refraining from acting, under this Agreement

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in accordance with a request of the Required Lenders, and such request and any action taken
or failure to act pursuant thereto shall be binding upon the Lenders and any future holders
of a participation in any Facility LC.

     2.19.9 Indemnification. The Borrower hereby agrees to indemnify and hold
harmless each Lender required to participate in Facility LCs under Section 2.19.2, each LC
Issuer and the Agent, and their respective directors, officers, agents and employees from
and against any and all claims and damages, losses, liabilities, costs or expenses which
such Lender, such LC Issuer or the Agent may incur (or which may be claimed against such
Lender, such LC Issuer or the Agent by any Person whatsoever) by reason of or in connection
with the issuance, execution and delivery or transfer of or payment or failure to pay under
any Facility LC or any actual or proposed use of any Facility LC, including, without
limitation, any claims, damages, losses, liabilities, costs or expenses which such LC Issuer
may incur by reason of or in connection with (i) the failure of any other Lender to fulfill
or comply with its obligations to such LC Issuer hereunder (but nothing herein contained
shall affect any rights the Borrower may have against any defaulting Lender) or (ii) by
reason of or on account of such LC Issuer issuing any Facility LC which specifies that the
term “Beneficiary” included therein includes any successor by operation of law of the named
Beneficiary, but which Facility LC does not require that any drawing by any such successor
Beneficiary be accompanied by a copy of a legal document, satisfactory to the applicable LC
Issuer, evidencing the appointment of such successor Beneficiary; provided that the
Borrower shall not be required to indemnify any Lender, any LC Issuer or the Agent for any
claims, damages, losses, liabilities, costs or expenses to the extent, but only to the
extent, caused by (x) the willful misconduct or gross negligence of such LC Issuer in
determining whether a request presented under any Facility LC complied with the terms of
such Facility LC or (y) such LC Issuer’s failure to pay under any Facility LC issued by it
after the presentation to it of a request strictly complying with the terms and conditions
of such Facility LC. Nothing in this Section 2.19.9 is intended to limit the obligations of
the Borrower under any other provision of this Agreement.

     2.19.10 Lenders’ Indemnification. Each Lender shall, ratably in accordance
with its Pro Rata Share indemnify each LC Issuer, its affiliates and their respective
directors, officers, agents and employees (to the extent not reimbursed by the Borrower)
against any cost, expense (including reasonable counsel fees and disbursements), claim,
demand, action, loss or liability (except such as result from such indemnitees’ gross
negligence or willful misconduct or such LC Issuer’s failure to pay under any Facility LC
issued by it after the presentation to it of a request strictly complying with the terms and
conditions of such Facility LC) that such indemnitees may suffer or incur in connection with
this Section 2.19 or any action taken or omitted by such indemnitees hereunder.

     2.19.11 Facility LC Collateral Account. Subsequent to the occurrence and
during the continuance of a Default, or at any time the Aggregate Outstanding Credit
Exposure exceeds the Borrowing Base, or at any time the Aggregate Outstanding Credit
Exposure exceeds the Aggregate Revolving Loan Commitment, the Borrower agrees that it will,
upon the request of the Agent or the Required Lenders and until the final expiration date of
any Facility LC and thereafter as long as any amount is payable to any LC Issuer or the

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Lenders in respect of any Facility LC, maintain a special collateral account pursuant to
arrangements satisfactory to the Agent (the “Facility LC Collateral Account”) at the
Agent’s office at the address specified pursuant to Article XIII, in the name of the
Borrower but under the sole dominion and control of the Agent, for the benefit of the
Lenders and in which the Borrower shall have no interest other than as set forth in Section
8.1. The Borrower hereby pledges, assigns and grants to the Agent, on behalf of and for the
ratable benefit of the Lenders and the LC Issuers, a security interest in all of the
Borrower’s right, title and interest in and to all funds which may from time to time be on
deposit in the Facility LC Collateral Account to secure the prompt and complete payment and
performance of the Secured Obligations. The Agent will invest any funds on deposit from
time to time in the Facility LC Collateral Account in certificates of deposit of JPMorgan
having a maturity not exceeding 30 days. Nothing in this Section 2.19.11 shall either
obligate the Agent to require the Borrower to deposit any funds in the Facility LC
Collateral Account or limit the right of the Agent to release any funds held in the Facility
LC Collateral Account in each case other than as required by Section 8.1.

     2.19.12 Rights as a Lender. In its capacity as a Lender, each LC Issuer shall
have the same rights and obligations as any other Lender.

     2.20. Increase of Aggregate Revolving Loan Commitment. The Borrower may from time to
time request that the Aggregate Revolving Loan Commitment be increased to an amount which does not
exceed $2,000,000,000 minus the aggregate amount of all permitted partial reductions of the
Aggregate Revolving Loan Commitment under Section 2.4.3; provided, however, that
upon any such request, the Borrower shall demonstrate, to the reasonable satisfaction of the Agent,
that such increase will not breach the terms of any of the indentures referenced in Section 9.18;
provided, further, however, that (x) each requested increase shall be in an
amount equal to $10,000,000 or an incremental amount in excess thereof, and (y) an increase in the
Aggregate Revolving Loan Commitment hereunder may only be made at a time when no Unmatured Default
or Default shall have occurred and be continuing or would result therefrom. The Agent may request
an opinion of counsel from the Borrower in connection with any such increase. In the event of such
a requested increase in the Aggregate Revolving Loan Commitment under this Section 2.20, each of
the Lenders shall be given the opportunity to participate in the increased Aggregate Revolving Loan
Commitment, (x) initially ratably in the proportion that its Revolving Loan Commitment bears to the
Aggregate Revolving Loan Commitment and (y) to the extent that the requested increase in the
Aggregate Revolving Loan Commitment is not fulfilled pursuant to the preceding clause, in such
additional amounts as any Lender, including any new Lender, the Agent and the Borrower agree. No
Lender shall have any obligation to increase its Revolving Loan Commitment pursuant to a request by
the Borrower under this Section 2.20. No increase hereunder shall be effective without the prior
written consent of the Agent (no such consent to be unreasonably withheld), including, without
limitation, the Agent’s prior written consent to the documentation evidencing such increase.

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ARTICLE III

YIELD PROTECTION; TAXES

     3.1. Yield Protection. If, on or after the Closing Date, the adoption of any law or
any governmental or quasi-governmental rule, regulation, policy, guideline or directive (whether or
not having the force of law), or any change in any such law, rule, regulation, policy, guideline or
directive or in the interpretation or administration thereof by any governmental or
quasi-governmental authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by any Lender or applicable Lending Installation or any LC
Issuer with any request or directive (whether or not having the force of law) of any such
authority, central bank or comparable agency:

	 	(i)	 	subjects any Lender or any applicable Lending Installation or any LC Issuer to
any Taxes, or changes the basis of taxation of payments (other than with respect to
Excluded Taxes) to any Lender or any LC Issuer in respect of its Eurodollar Loans,
Facility LCs, or participations therein, or
	 
	 	(ii)	 	imposes or increases or deems applicable any reserve, assessment, insurance
charge, special deposit or similar requirement against assets of, deposits with or for
the account of, or credit extended by, any Lender or any applicable Lending
Installation or any LC Issuer (other than reserves and assessments taken into account
in determining the interest rate applicable to Eurodollar Advances), or
	 
	 	(iii)	 	imposes any other condition the result of which is to increase the cost to any
Lender or any applicable Lending Installation of making, funding or maintaining its
Revolving Loan Commitment or Eurodollar Loans or of issuing or participating in
Facility LCs, or reduces any amount receivable by any Lender or any applicable Lending
Installation or any LC Issuer in connection with its Revolving Loan Commitment or
Eurodollar Loans or Facility LCs (including participations therein), or requires any
Lender or any applicable Lending Installation or any LC Issuer to make any payment
calculated by reference to the amount of Revolving Loan Commitment or Eurodollar Loans
or Facility LCs (including participations therein) held or interest or LC Fees received
by it, by an amount deemed material by such Lender or any LC Issuer, as applicable,

and the result of any of the foregoing is to increase the cost to such Lender or applicable Lending
Installation or such LC Issuer of making or maintaining its Eurodollar Loans or Revolving Loan
Commitment or of issuing or participating in Facility LCs, as applicable, or to reduce the return
received by such Lender or applicable Lending Installation or such LC Issuer in connection with
such Eurodollar Loans or Revolving Loan Commitment, or Facility LCs (including participations
therein), then, within 15 days of demand, accompanied by the written statement required by Section
3.6, by such Lender or LC Issuer, the Borrower shall pay such Lender or LC Issuer such additional
amount or amounts as will compensate such Lender or LC Issuer for such increased cost or reduction
in amount received.

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     3.2. Changes in Capital Adequacy Regulations. If a Lender or LC Issuer determines the
amount of capital required or expected to be maintained by such Lender or LC Issuer, any Lending
Installation of such Lender or LC Issuer, or any corporation controlling such Lender or LC Issuer
is increased as a result of a Change, then, within 15 days of demand, accompanied by the written
statement required by Section 3.6, by such Lender or LC Issuer, the Borrower shall pay such Lender
or LC Issuer the amount necessary to compensate for any shortfall in the rate of return on the
portion of such increased capital which such Lender or LC Issuer determines is attributable to this
Agreement, its Outstanding Credit Exposure or its Revolving Loan Commitment to make Revolving Loans
and issue or participate in Facility LCs, as applicable, hereunder (after taking into account such
Lender’s or LC Issuer’s policies as to capital adequacy). “Change” means (i) any change after the
Closing Date in the Risk-Based Capital Guidelines or (ii) any adoption of, or change in, or change
in the interpretation or administration of any other law, governmental or quasi-governmental rule,
regulation, policy, guideline, interpretation, or directive (whether or not having the force of
law) after the Closing Date which affects the amount of capital required or expected to be
maintained by any Lender or LC Issuer or any Lending Installation or any corporation controlling
any Lender or LC Issuer. “Risk-Based Capital Guidelines” means (i) the risk-based capital
guidelines in effect in the United States on the Closing Date, including transition rules, and (ii)
the corresponding capital regulations promulgated by regulatory authorities outside the United
States implementing the July 1988 report of the Basel Committee on Banking Regulation and
Supervisory Practices entitled “International Convergence of Capital Measurements and Capital
Standards,” and/or the June 2004 report of the Basel Committee on Banking Regulation and
Supervisory Practices entitled “International Convergence of Capital Measurement and Capital
Standards, a Revised Framework”, as the case may be, and including, in each case, transition rules,
and any amendments to such regulations or laws incorporating such regulations in either case that
are adopted prior to the Closing Date.

     3.3. Availability of Types of Advances. If (x) any Lender determines that maintenance
of its Eurodollar Loans at a suitable Lending Installation would violate any applicable law, rule,
regulation, or directive, whether or not having the force of law, or (y) the Required Lenders
determine that (i) deposits of a type and maturity appropriate to match fund Eurodollar Advances
are not available or (ii) the interest rate applicable to Eurodollar Advances does not accurately
reflect the cost of making or maintaining Eurodollar Advances, or (iii) no reasonable basis exists
for determining the Eurodollar Base Rate, then the Agent shall suspend the availability of
Eurodollar Advances and require any affected Eurodollar Advances to be repaid or converted to
Floating Rate Advances on the respective last days of the then current Interest Periods with
respect to such Loans or within such earlier period as required by law, subject to the payment of
any funding indemnification amounts required by Section 3.4.

     3.4. Funding Indemnification. If any payment of a Eurodollar Advance occurs on a date
which is not the last day of the applicable Interest Period, whether because of acceleration,
prepayment or otherwise, or a Eurodollar Advance is not made or continued, or a Floating Rate
Advance is not converted into a Eurodollar Advance, on the date specified by the Borrower for any
reason other than default by the Lenders, or a Eurodollar Advance is not prepaid on the date
specified by the Borrower for any reason, the Borrower will indemnify each Lender for any loss or
cost incurred by it resulting therefrom, including, without limitation, any loss or cost in
liquidating or employing deposits acquired to fund or maintain such Eurodollar Advance.

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     3.5. Taxes. (i) All payments by the Borrower to or for the account of any Lender,
any LC Issuer, or the Agent hereunder or under any Note shall be made free and clear of and without
deduction for any and all Taxes. If the Borrower shall be required by law to deduct any Taxes from
or in respect of any sum payable hereunder to any Lender, any LC Issuer, or the Agent, (a) 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 3.5) such Lender, LC Issuer, or
the Agent (as the case may be) receives an amount equal to the sum it would have received had no
such deductions been made, (b) the Borrower shall make such deductions, (c) the Borrower shall pay
the full amount deducted to the relevant authority in accordance with applicable law and (d) the
Borrower shall furnish to the Agent the original copy of a receipt evidencing payment thereof or,
if a receipt cannot be obtained with reasonable efforts, such other evidence of payment as is
reasonably acceptable to the Agent, in each case within 30 days after such payment is made.

	 	(ii)	 	In addition, the Borrower shall pay any present or future stamp or documentary
taxes and any other excise or property taxes, charges or similar levies which arise
from any payment made hereunder or under any Note or Facility LC Application or from
the execution or delivery of, or otherwise with respect to, this Agreement, any Note or
any Facility LC Application (“Other Taxes”).
	 
	 	(iii)	 	The Borrower shall indemnify the Agent, each LC Issuer, and each Lender for the
full amount of Taxes or Other Taxes (including, without limitation, any Taxes or Other
Taxes imposed on amounts payable under this Section 3.5) paid by the Agent, such LC
Issuer, or such Lender as a result of its Revolving Loan Commitment, any Credit
Extensions made by it hereunder, or any Facility LC issued or participated in by it
hereunder, or otherwise in connection with its participation in this Agreement and any
liability (including penalties, interest and expenses) arising therefrom or with
respect thereto. Payments due under this indemnification shall be made within 30 days
of the date the Agent or such LC Issuer or such Lender makes demand therefor pursuant
to Section 3.6.
	 
	 	(iv)	 	Each Lender that is not incorporated under the laws of the United States of
America or a state thereof (each a “Non-U.S. Lender”) agrees that it will, not
more than ten Business Days after the date on which it becomes a party to this
Agreement (but in any event before a payment is due to it hereunder), (i) deliver to
each of the Borrower and the Agent two duly completed copies of United States Internal
Revenue Service Form W-8BEN or W-8ECI, certifying in either case that such Lender is
entitled to receive payments under this Agreement without deduction or withholding of
any United States federal income taxes, or (ii) in the case of a Non-U.S. Lender that
is fiscally transparent, deliver to the Agent a United States Internal Revenue Form
W-8IMY together with the applicable accompanying forms, W-8 or W-9, as the case may be,
and certify that it is entitled to an exemption from United States withholding tax.
Each Non-U.S. Lender further undertakes to deliver to the Borrower and the Agent (x)
renewals or additional copies of such form (or any successor form) on or before the
date that such form expires or becomes obsolete, and (y) after the occurrence of any
event requiring a change in the most recent forms so delivered by it, such

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	 	 	 	additional forms or amendments thereto as may be reasonably requested by the
Borrower or the Agent. All forms or amendments described in the preceding sentence
shall certify that such Lender is entitled to receive payments under this Agreement
without deduction or withholding of any United States federal income taxes, unless
an event (including without limitation any change in treaty, law or regulation) has
occurred prior to the date on which any such delivery would otherwise be required
which renders all such forms inapplicable or which would prevent such Lender from
duly completing and delivering any such form or amendment with respect to it and
such Lender advises the Borrower and the Agent that it is not capable of receiving
payments without any deduction or withholding of United States federal income tax.
	 
	 	(v)	 	For any period during which a Non-U.S. Lender has failed to provide the
Borrower with an appropriate form pursuant to clause (iv) above (unless such failure is
due to a change in treaty, law or regulation, or any change in the interpretation or
administration thereof by any governmental authority, occurring subsequent to the date
on which a form originally was required to be provided), such Non-U.S. Lender shall not
be entitled to indemnification under this Section 3.5 with respect to Taxes imposed by
the United States; provided that, should a Non-U.S. Lender which is otherwise
exempt from or subject to a reduced rate of withholding tax become subject to Taxes
because of its failure to deliver a form required under clause (iv) above, the Borrower
shall take such steps as such Non-U.S. Lender shall reasonably request to assist such
Non-U.S. Lender to recover such Taxes.
	 
	 	(vi)	 	Any Lender that is entitled to an exemption from or reduction of withholding
tax with respect to payments under this Agreement or any Note pursuant to the law of
any relevant jurisdiction or any treaty shall deliver to the Borrower (with a copy to
the Agent), at the time or times prescribed by applicable law, 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.
	 
	 	(vii)	 	If the U.S. Internal Revenue Service or any other governmental authority of the
United States or any other country or any political subdivision thereof asserts a claim
that the Agent did not properly withhold tax from amounts paid to or for the account of
any Lender (because the appropriate form was not delivered or properly completed,
because such Lender failed to notify the Agent of a change in circumstances which
rendered its exemption from withholding ineffective, or for any other reason), such
Lender shall indemnify the Agent fully for all amounts paid, directly or indirectly, by
the Agent as tax, withholding therefor, or otherwise, including penalties and interest,
and including taxes imposed by any jurisdiction on amounts payable to the Agent under
this subsection, together with all costs and expenses related thereto (including
attorneys fees and time charges of attorneys for the Agent, which attorneys may be
employees of the Agent). The obligations of the Lenders under this Section 3.5(vii)
shall survive the payment of the Obligations and termination of this Agreement.

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     3.6. Lender Statements; Survival of Indemnity. Each Lender shall deliver a written
statement of such Lender to the Borrower (with a copy to the Agent) as to the amount due, if any,
under Section 3.1, 3.2, 3.4 or 3.5. Such written statement shall set forth in reasonable detail
the calculations upon which such Lender determined such amount and shall be rebuttably presumptive
evidence of the amount owed. Determination of amounts payable under such Sections in connection
with a Eurodollar Loan shall be calculated as though each Lender funded its Eurodollar Loan through
the purchase of a deposit of the type, currency and maturity corresponding to the deposit used as a
reference in determining the Eurodollar Rate applicable to such Loan, whether in fact that is the
case or not. Unless otherwise provided herein, the amount specified in the written statement of
any Lender shall be payable on demand after receipt by the Borrower of such written statement. The
obligations of the Borrower under Sections 3.1, 3.2, 3.4 and 3.5 shall survive payment of the
Obligations and termination of this Agreement.

     3.7. Alternative Lending Installation. To the extent reasonably possible, each Lender
shall designate an alternate Lending Installation with respect to its Eurodollar Loans to reduce
any liability of the Borrower to such Lender under Sections 3.1, 3.2 and 3.5 or to avoid the
unavailability of Eurodollar Advances under Section 3.3, so long as such designation is not, in the
judgment of such Lender, reasonably disadvantageous to such Lender. A Lender’s designation of an
alternative Lending Installation shall not affect the Borrower’s rights under Section 2.18 to
replace a Lender.

ARTICLE IV

CONDITIONS PRECEDENT

     4.1. Effectiveness of Revolving Loan Commitments. The Lenders’ Revolving Loan
Commitments shall not be effective hereunder until the Agent shall have received on the Closing
Date a fully executed copy of this Agreement and the following conditions precedent have been
satisfied by the Borrower:

     4.1.1 Copies of the articles or certificate of incorporation (or the equivalent
thereof) of (a) the Borrower and (b) each Subsidiary Guarantor, in each case together with
all amendments thereto, and a certificate of good standing, each certified by the
appropriate governmental officer in its jurisdiction of organization.

     4.1.2 Copies, certified by the Secretary or Assistant Secretary (or the equivalent
thereof) of (a) the Borrower and (b) each Subsidiary Guarantor, in each case, of its by-laws
and of its Board of Directors’ resolutions and of resolutions or actions of any other body
authorizing the execution of the Loan Documents to which the Borrower or such Subsidiary, as
applicable, is a party.

     4.1.3 An incumbency certificate, executed by the Secretary or Assistant Secretary (or
the equivalent thereof) of (a) the Borrower and (b) each Subsidiary Guarantor, in each case
which shall identify by name and title and bear the signatures of the Authorized Officers
and any other officers of the Borrower and such Subsidiary authorized to sign the Loan
Documents to which the Borrower and such Subsidiary are parties, upon which

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certificate the Agent and the Lenders shall be entitled to rely until informed of any
change in writing by the Borrower or such Subsidiary, as applicable.

     4.1.4 A certificate, in substantially the form of Exhibit G, signed by the chief
financial officer or vice president, finance and treasurer of the Borrower, stating that on
the initial Credit Extension Date (a) no Default or Unmatured Default has occurred and is
then continuing, (b) all of the representations and warranties in Article V shall be true
and correct in all material respects as of such date (or an earlier date if a representation
or warranty relates to a specified earlier date) and (c) no material adverse change in the
business, Property, condition (financial or otherwise), operations or results of operations
of the Borrower or any of its Subsidiary Guarantors has occurred since December 31, 2006
other than as disclosed in Form 10-Q filed by the Borrower with the U.S. Securities and
Exchange Commission for the fiscal quarter ending March 31, 2007 with respect to the
operations and results of operations of the Borrower and its consolidated Subsidiaries.

     4.1.5 A written opinion of the Borrower’s counsel, in form and substance satisfactory
to the Agent and addressed to the Lenders, in substantially the form of Exhibit A hereto.

     4.1.6 Any Notes requested by a Lender pursuant to Section 2.12 payable to the order of
each such requesting Lender.

     4.1.7 Written money transfer instructions, in substantially the form of Exhibit D,
addressed to the Agent and signed by an Authorized Officer, together with such other related
money transfer authorizations as the Agent may have reasonably requested.

     4.1.8 The Agent shall have determined that the Borrower has fully cooperated with the
Agent’s syndication efforts, including, without limitation, by providing the Agent with
information regarding the Borrower’s operations and prospects and such other information as
the Agent deems necessary to successfully syndicate the Loans hereunder.

     4.1.9 A Monthly Collateral Report for March 31, 2007 and such other evidence reasonably
requested by the Agent to demonstrate that, among other things, Excess Availability on the
Closing Date, after giving effect to all Advances requested by the Borrower and to be made
on the Closing Date, equals or exceeds $450,000,000.

     4.1.10 An initial compliance certificate dated as of the date hereof, in substantially
the form of Exhibit B hereto, together with (i) the Borrower’s most recently completed
audited financial statements for the fiscal year ended December 31, 2006 as filed on Form
10-K with the U.S. Securities and Exchange Commission, (ii) the Borrower’s most recently
completed financial summaries, and (iii) the Borrower’s financial projections, in a format
reasonably acceptable to the Agent, for the period beginning January 1, 2007 and ending
December 31, 2011.

     4.1.11 All fees owing to the Agent and the Lenders on the Closing Date, including,
without limitation, those referenced in Sections 2.4.2 and 10.13, shall have been fully
paid.

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     4.1.12 All documents reasonably requested by the Agent in respect of the 2007
Acquisitions.

     4.1.13 Evidence reasonably satisfactory to the Agent that (i) the loan evidenced by the
Interim Financing Documents shall have been or will be consummated substantially
concurrently with the effectiveness of this Agreement and (ii) the 2007 Shell Acquisition
shall have been or will be consummated substantially concurrently with the effectiveness of
this Agreement, in each case on terms and conditions reasonably satisfactory to the Agent.

     4.1.14 Such other documents as any Lender or its counsel may have reasonably requested,
including, without limitation, those documents set forth in Exhibit H hereto.

     4.2. Each Credit Extension. The Lenders shall not be required to make any Credit
Extension (except as otherwise set forth in Section 2.1.3(d) with respect to Revolving Loans
extended for purposes of repaying Non-Ratable Loans and other than in connection with Collateral
Protection Advances) unless on the applicable Credit Extension Date:

     4.2.1 There exists no Default or Unmatured Default.

     4.2.2 The representations and warranties contained in Article V are true and correct as
of such Credit Extension Date except (x) with respect to Sections 5.5 and 5.7, the
representations and warranties set forth in such Sections shall have been true and correct
on and as of the date of the most recent Form 10-K or Form 10-Q filing, as applicable, made
by the Borrower with the U.S. Securities and Exchange Commission, and (y) with respect to
any other representation and warranty set forth in Article V, to the extent such
representation or warranty is stated to relate solely to an earlier date, such
representation or warranty shall have been true and correct on and as of such earlier date.

     Each Borrowing Notice, or request for issuance of a Facility LC with respect to each such
Credit Extension shall constitute a representation and warranty by the Borrower that the conditions
contained in Sections 4.2.1 and 4.2.2 have been satisfied.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants to each Lender and the Agent as of each of (i) the
Closing Date, (ii) the date of the initial Credit Extension hereunder (if different from the
Closing Date) and (iii) each date as required by Section 4.2:

     5.1. Existence and Standing. Each of the Borrower and its Subsidiaries is a
corporation, partnership (in the case of Subsidiaries only) or limited liability company duly
incorporated or organized, as the case may be, validly existing and (to the extent such concept
applies to such entity) in good standing under the laws of its jurisdiction of incorporation or
organization and has all requisite authority to conduct its business in each jurisdiction in which
its business is conducted, except where the failure to be so qualified does not or could not be
expected to cause or result in the occurrence of a Material Adverse Effect.

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     5.2. Authorization and Validity. Each of the Borrower and each Subsidiary Guarantor
has the power and authority and legal right to execute and deliver the Loan Documents to which the
Borrower or each such Subsidiary Guarantor, as applicable, is a party and to perform its
obligations thereunder. The execution and delivery by each of the Borrower and each Subsidiary
Guarantor of the Loan Documents to which the Borrower or each such Subsidiary Guarantor, as
applicable, is a party and the performance of its obligations thereunder have been duly authorized
by proper proceedings, and the Loan Documents to which the Borrower or such Subsidiary Guarantor,
as applicable, is a party constitute legal, valid and binding obligations of the Borrower or such
Subsidiary Guarantor, as applicable, enforceable against the Borrower or such Subsidiary Guarantor,
as applicable, in accordance with their terms, except as enforceability may be limited by (i)
bankruptcy, insolvency, fraudulent conveyances, reorganization or similar laws relating to or
affecting the enforcement of creditors’ rights generally; (ii) general equitable principles
(whether considered in a proceeding in equity or at law); and (iii) requirements of reasonableness,
good faith and fair dealing.

     5.3. No Conflict; Government Consent. Neither the execution and delivery by the
Borrower or the Subsidiary Guarantors, as applicable, of the Loan Documents, nor the consummation
of the transactions therein contemplated, nor compliance with the provisions thereof will violate
(i) any law, rule, regulation, order, writ, judgment, injunction, decree or award binding on the
Borrower or any of the Subsidiary Guarantors, or (ii) the Borrower’s or any Subsidiary Guarantor’s
articles or certificate of incorporation, partnership agreement, certificate of partnership,
articles or certificate of organization, by-laws, or operating agreement or other management
agreement, as the case may be, or (iii) the provisions of any indenture, instrument or agreement to
which the Borrower or any of the Subsidiary Guarantors is a party or is subject, or by which it, or
its Property, is bound, or conflict with, or constitute a default under, or result in, or require,
the creation or imposition of any Lien in, of or on the Property of the Borrower or a Subsidiary
Guarantor pursuant to the terms of, any such indenture, instrument or agreement except where such
violation would not reasonably be expected to have a Material Adverse Effect. No order, consent,
adjudication, approval, license, authorization, or validation of, or exemption by, any governmental
or public body or authority, or any subdivision thereof, which has not been obtained by the
Borrower or any of the Subsidiary Guarantors, is required to be obtained by the Borrower or any of
the Subsidiary Guarantors in connection with the execution and delivery of the Loan Documents, the
borrowings under this Agreement, the payment and performance by the Borrower of the Obligations or
the legality, validity, binding effect or enforceability of any of the Loan Documents except where
failure to obtain the same would not reasonably be expected to have a Material Adverse Effect.

     5.4. Financial Statements. The December 31, 2006 consolidated financial statements of
the Borrower and its Subsidiaries heretofore delivered to the Agent and the Lenders were prepared
in accordance with US GAAP in effect on the date such statements were prepared and fairly present
the consolidated financial condition of the Borrower and its Subsidiaries at such date in all
material respects.

     5.5. Material Adverse Change. Since December 31, 2006, there has been no change in
the business, Property, condition (financial or otherwise) or results of operations of the Borrower
and its Subsidiaries, taken together, which could reasonably be expected to have a Material Adverse
Effect.

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     5.6. Taxes. The Borrower and its Subsidiaries have filed all United States federal
tax returns and all other tax returns which are required to be filed (except where failure to file
such other tax returns would not reasonably be expected to have a Material Adverse Effect) and have
paid all taxes due pursuant to said returns or pursuant to any assessment received by the Borrower
or any of its Subsidiaries, except in respect of such taxes, if any, as are being contested in good
faith and as to which adequate reserves have been provided in accordance with Agreement Accounting
Principles and as to which no Lien exists (except as permitted by Section 6.15.1). The United
States income tax returns of the Borrower and its Subsidiaries have been audited by the Internal
Revenue Service through the fiscal year ended 2003.

     5.7. Litigation and Contingent Obligations. There is no litigation, arbitration,
governmental investigation, proceeding or inquiry pending or, to the knowledge of any of their
officers, threatened against or affecting the Borrower or any of its Subsidiaries which could
reasonably be expected to have a Material Adverse Effect or which seeks to prevent, enjoin or delay
the making of any Loans. Other than any liability incident to any litigation, arbitration or
proceeding which could not reasonably be expected to have a Material Adverse Effect, the Borrower
has no material contingent obligations not provided for or disclosed in the financial statements
referred to in Section 5.4.

     5.8. Subsidiaries. Schedule 5.8 contains an accurate list of all Subsidiaries
of the Borrower as of the date of this Agreement, setting forth their respective jurisdictions of
organization and the percentage of their respective capital stock or other ownership interests
owned by the Borrower or other Subsidiaries. Schedule 5.8 also identifies those
Subsidiaries that constitute Subsidiary Guarantors. All of the issued and outstanding shares of
capital stock or other ownership interests of such Subsidiaries have been (to the extent such
concepts are relevant with respect to such ownership interests) duly authorized and issued and are
fully paid and non-assessable.

     5.9. ERISA. As of the Closing Date, the Unfunded Liabilities of all Single Employer
Plans do not in the aggregate exceed $75,000,000. As of the Closing Date, each Plan complies with
all minimum funding requirements under ERISA. Except as provided on Schedule 5.9, as of the
Closing Date, neither the Borrower nor any member of the Controlled Group is party to a
Multiemployer Plan or has, or could reasonably be expected to have, any liability to a
Multiemployer Plan.

     5.10. Accuracy of Information. The information, exhibits or reports furnished by the
Borrower to the U.S. Securities and Exchange Commission on Form 10-K and Form 10-Q do not contain
any material misstatement of fact or omit to state a material fact or any fact necessary to make
the statements contained therein not misleading. The information furnished by the Borrower in each
Monthly Collateral Report and Interim Collateral Report is, to the best of the Borrower’s
knowledge, accurate in all material respects.

     5.11. Regulation U. Neither the Borrower nor any of its Subsidiaries is engaged
principally, or as one of its important activities, in the business of extending credit for the
purpose, whether immediate, incidental or ultimate of buying or carrying margin stock (as defined
in Regulation U), and after applying the proceeds of each Credit Extension, margin stock (as
defined in Regulation U) constitutes less than 25% of the value of those assets of the

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Borrower and its Subsidiaries which are subject to any limitation on sale, pledge, or any
other restriction hereunder.

     5.12. Material Agreements. Neither the Borrower nor any Subsidiary is in default in
the performance, observance or fulfillment of any of the obligations, covenants or conditions
contained in (i) any agreement or instrument to which it is a party, which default could reasonably
be expected to have a Material Adverse Effect or (ii) any agreement or instrument evidencing or
governing material Indebtedness.

     5.13. Compliance With Laws. The Borrower and its Subsidiaries have complied with all
applicable statutes, rules, regulations, orders and restrictions of any domestic or foreign
government or any instrumentality or agency thereof having jurisdiction over the conduct of their
respective businesses or the ownership of their respective Property, except where the failure to do
so has not caused or resulted in the occurrence of a Material Adverse Effect.

     5.14. Ownership of Properties. On the date of this Agreement, the Borrower and its
Subsidiaries have good title, free of all Liens other than those permitted by Section 6.15, to all
of the assets reflected in the Borrower’s most recent consolidated financial statements provided to
the Agent, as owned by the Borrower and its Subsidiaries.

     5.15. Plan Assets; Prohibited Transactions. The Borrower is not an entity deemed to
hold “plan assets” within the meaning of 29 C.F.R. § 2510.3-101 of an employee benefit plan (as
defined in Section 3(3) of ERISA) which is subject to Title I of ERISA or any plan (within the
meaning of Section 4975 of the Code), and neither the execution of this Agreement nor the making of
Revolving Loans hereunder gives rise to a prohibited transaction within the meaning of Section 406
of ERISA or Section 4975 of the Code.

     5.16. Environmental Matters. In the ordinary course of its business, the officers of
the Borrower consider the effect of Environmental Laws on the business of the Borrower and its
Subsidiaries, in the course of which they identify and evaluate potential risks and liabilities
accruing to the Borrower due to Environmental Laws. On the basis of this consideration, the
Borrower has concluded that, in its good faith determination, the risks and liabilities accruing to
the Borrower due to Environmental Laws would not reasonably be expected to have a Material Adverse
Effect. Neither the Borrower nor any Subsidiary has received any notice to the effect that its
operations are not in material compliance with any of the requirements of applicable Environmental
Laws or are the subject of any federal or state investigation evaluating whether any remedial
action is needed to respond to a release of any toxic or hazardous waste or substance into the
environment, which non-compliance or remedial action could reasonably be expected to have a
Material Adverse Effect.

     5.17. Investment Company Act. Neither the Borrower nor any Subsidiary is an
“investment company” or a company “controlled” by an “investment company”, within the meaning of
the Investment Company Act of 1940, as amended.

     5.18. Insurance. The Borrower maintains, and has caused each Subsidiary to maintain,
with financially sound and reputable insurance companies, insurance on all their Property in such
amounts, subject to such deductibles and self-insurance retentions and covering such properties

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and risks as is consistent with sound business practice. The Borrower has delivered to the
Agent and the Lenders a complete and accurate list of its insurance policies and programs and the
Property subject thereto. The Borrower has caused all such policies to be subject to provisions
which prohibit the cancellation thereof by the provider thereof without at least 30 days’ prior
written notice to the Borrower and each loss payee thereof.

     5.19. No Default or Unmatured Default. No Default or Unmatured Default has occurred
and is continuing.

ARTICLE VI

COVENANTS

     During the term of this Agreement, unless the Required Lenders shall otherwise consent in
writing:

     6.1. Financial Reporting. The Borrower will maintain, for itself and each Subsidiary
Guarantor, a system of accounting established and administered in accordance with US GAAP, and
furnish to the Agent for the benefit of the Lenders:

     6.1.1 Within 105 days after the close of each of its fiscal years, (a) financial
statements prepared in accordance with Agreement Accounting Principles on a consolidated
basis for itself and its Subsidiaries, as filed on Form 10-K with the U.S. Securities and
Exchange Commission, accompanied by (i) an auditor’s report, unqualified as to scope, of a
nationally recognized firm of independent public accountants or other independent public
accountants reasonably acceptable to the Required Lenders; (ii) any management letter
prepared by said accountants; and (iii) a certificate of said accountants that, in the
course of their examination necessary for their certification of the foregoing, they have
obtained no knowledge of any Default or Unmatured Default, or if, in the opinion of such
accountants, any Default or Unmatured Default shall exist, stating the nature and status
thereof.

     6.1.2 Within (x) 30 days after the end of each calendar month other than those calendar
months that end the first three fiscal quarters of each of the Borrower’s fiscal years, and
(y) 45 days after the end of each December of each calendar year, for itself and its
consolidated Subsidiaries, the Borrower’s financial summaries for such month, which shall be
prepared on a consolidated basis and shall be in form and substance substantially similar to
the financial summaries delivered on or prior to the Closing Date or shall otherwise be in
form and substance reasonably acceptable to the Agent.

     6.1.3 Within 45 days after the close of each of the first three fiscal quarters of each
of its fiscal years, for itself and its Subsidiaries, consolidated unaudited financial
statements for such period as filed on Form 10-Q with the U.S. Securities and Exchange
Commission, prepared in accordance with Agreement Accounting Principles and (except for the
exclusion of any disclosure permitted by the U.S. Securities and Exchange Commission)
certified as to fairness of presentation and consistency by its chief financial officer or
treasurer.

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     6.1.4 Together with the financial statements required under Sections 6.1.1 and 6.1.3, a
compliance certificate in substantially the form of Exhibit B signed by its chief financial
officer or treasurer or vice president, finance showing the calculations necessary to
determine compliance with this Agreement, stating that no Default or Unmatured Default
exists, or if any Default or Unmatured Default exists, stating the nature and status
thereof, and, together with the financial statements required under Section 6.1.1 and
Section 6.1.3, copies of the certificate or certificates as filed by the Borrower in
connection with Forms 10-K and 10-Q with the U.S. Securities and Exchange Commission
relating to Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002.

     6.1.5 Within 270 days after the close of each fiscal year of the Borrower, a copy of
the actuarial report and Form 5500 with Schedule B showing the Unfunded Liabilities of each
Single Employer Plan as of the valuation date occurring in such fiscal year, certified by an
actuary enrolled under ERISA.

     6.1.6 As soon as practicable and in any event within 30 days after the Borrower knows
that any Reportable Event has occurred with respect to any Plan, a statement, signed by the
chief financial officer or treasurer of the Borrower, describing said Reportable Event and
the action which the Borrower proposes to take with respect thereto.

     6.1.7 As soon as practicable and in any event within 10 Business Days after receipt by
the Borrower, a copy of (a) any notice or claim to the effect that the Borrower or any of
its Subsidiaries is or may be liable to any Person as a result of the release by the
Borrower, any of its Subsidiaries, or any other Person of any toxic or hazardous waste or
substance into the environment, and (b) any notice alleging any violation of any federal,
state or local environmental, health or safety law or regulation by the Borrower or any of
its Subsidiaries, which, in either case, the Borrower in good faith believes would
reasonably be expected to have a Material Adverse Effect.

     6.1.8 Promptly upon the filing thereof, copies of all registration statements and
annual, quarterly, or other regular reports which the Borrower or any of its Subsidiaries
files with the Securities and Exchange Commission, including, without limitation, all
certifications and other filings required by Section 302 and Section 906 of the
Sarbanes-Oxley Act of 2002 and all rules and regulations related thereto.

     6.1.9 On each date on which an Interim Collateral Report or a Monthly Collateral Report
is delivered, the Borrower shall provide the Agent with all supporting documents the Agent
reasonably deems desirable, all certified as being true and correct by an Authorized Officer
of the Borrower. The Borrower may update Interim Collateral Reports and Monthly Collateral
Reports more frequently than the periods set forth below and, so long as such Interim
Collateral Reports or Monthly Collateral Reports are delivered together with all supporting
information reasonably requested by the Agent, the most recently delivered Interim
Collateral Report or Monthly Collateral Report, as applicable, shall be the applicable
Interim Collateral Report or Monthly Collateral Report for purposes of determining the
Borrowing Base at any time. Each Interim Collateral Report and Monthly Collateral Report
shall (i) set forth the ratings of both S&P and

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Moody’s in effect on the date of such report in respect of the Borrower’s senior
long-term secured indebtedness (without giving effect to any credit enhancement) and (ii)
indicate whether either of such ratings have changed since the most recently delivered
Interim Collateral Report or Monthly Collateral Report, as applicable, prior to such date.

     6.1.10 As soon as practicable, and in any event within 15 calendar days of the end of
each calendar month, the Borrower shall provide the Agent with a Monthly Collateral Report
for such calendar month certified as being true and correct in all material respects by an
Authorized Officer of the Borrower. In addition to the foregoing, the Borrower, shall
deliver copies of invoices, purchase orders, credit memoranda, shipping and delivery
documents and other information related to Eligible Receivables and Eligible Petroleum
Inventory identified in the applicable Monthly Collateral Report as Agent shall reasonably
request.

     6.1.11 For so long as Excess Availability is less than or equal to $300,000,000, as
soon as practicable, and in any event within three Business Days after the end of each
calendar week during such period, the Borrower shall provide to the Agent an Interim
Collateral Report for the applicable one-week period certified as being true and correct by
an Authorized Officer of the Borrower. Each Interim Collateral Report shall identify, for
the applicable reporting period, the aggregate amount of all contra-accounts related to
Specified Customers net of the aggregate of the face amounts of all letters of credit issued
on behalf of the Borrower or the applicable Subsidiary Guarantor to Specified Customers as
payment for goods or services purchased by the Borrower or the applicable Subsidiary
Guarantor from the Specified Customers. No Interim Collateral Report described in this
Section 6.1.11 shall be required to be delivered by the Borrower pursuant to this Section
6.1.11. during any period in which Excess Availability exceeds $300,000,000.

     6.1.12 If on any date Excess Availability exceeds 35% of the then effective Borrowing
Base, and the dollar value of the then existing Eligible Petroleum Inventory is less than
80% of the dollar value of Eligible Petroleum Inventory reported in the last Interim
Collateral Report or Monthly Collateral Report delivered to the Agent, as applicable, the
Borrower shall provide to the Agent, within five Business Days of such date, a new Interim
Collateral Report certified as being true and correct by an Authorized Officer of the
Borrower, together with all supporting documentation reasonably requested by the Agent. If
on any date Excess Availability is greater than 25% of the then effective Borrowing Base but
less than or equal to 35% of the then effective Borrowing Base, and the dollar value of the
then existing Eligible Petroleum Inventory is less than 85% of the dollar value of Eligible
Petroleum Inventory reported in the last Interim Collateral Report or Monthly Collateral
Report delivered to the Agent, as applicable, the Borrower shall provide to the Agent,
within five Business Days of such date, a new Interim Collateral Report certified as being
true and correct by an Authorized Officer of the Borrower, together with all supporting
documentation reasonably requested by the Agent.

     6.1.13 Within 30 days after the close of each of its fiscal years, a copy of the plan
and forecast (including a projected balance sheet, projected income statements, and
projected funds flow statement) of the Borrower and its Subsidiaries, for the upcoming
fiscal year prepared in such detail as shall be reasonably satisfactory to the Agent. Any

59

 

plan and forecast in form and substance substantially similar to the plan and forecast
delivered on or prior to the Closing Date shall be deemed to be reasonably satisfactory by
the Agent.

     6.1.14 Such other information (including non-financial information and additional or
supplemental reporting) as the Agent or any Lender may from time to time reasonably request.

     6.2. Use of Proceeds. The Borrower will, and will cause each Subsidiary to, use the
proceeds of the Credit Extensions for general corporate purposes, including, without limitation,
for working capital, to repay certain Indebtedness, expenditures constituting Consolidated Capital
Expenditures, Permitted Acquisitions, the 2007 Shell Acquisition and to pay fees and expenses
incurred in connection with this Agreement. The Borrower shall use the proceeds of Credit
Extensions in compliance with all applicable legal and regulatory requirements and any such use
shall not result in a violation of any such requirements, including, without limitation, Regulation
U and X, the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as
amended, and the regulations promulgated thereunder.

     6.3. Notice of Default. Within five (5) Business Days after an Authorized Officer has
knowledge thereof, the Borrower will, and will cause each Subsidiary Guarantor to, give notice in
writing to the Lenders of the occurrence of any Default or Unmatured Default.

     6.4. Conduct of Business. The Borrower will, and will cause each Subsidiary Guarantor
to, carry on and conduct its business in substantially the same manner and in similar fields of
enterprise as it is presently conducted and do all things necessary to remain duly incorporated or
organized, validly existing and (to the extent such concept applies to such entity) in good
standing as a corporation, partnership or limited liability company in its jurisdiction of
incorporation or organization, as the case may be, and maintain all requisite authority to conduct
its business in each jurisdiction in which its business is conducted, except where the failure to
do so could not reasonably be expected to cause or result in the occurrence of a Material Adverse
Effect.

     6.5. Taxes. The Borrower will, and will cause each Subsidiary to, timely file
complete and correct United States federal and applicable material foreign, state and local tax
returns required by law and pay when due all taxes, assessments and governmental charges and levies
upon it or its income, profits or Property, except those which are being contested in good faith by
appropriate proceedings and with respect to which adequate reserves have been set aside in
accordance with Agreement Accounting Principles.

     6.6. Insurance. The Borrower will, and will cause each Subsidiary to, maintain with
financially sound and reputable insurance companies insurance in such amounts, subject to such
deductibles and self-insurance retentions, and covering such risks as is consistent with sound
business practice. The Borrower shall deliver to the Agent lender’s loss payable endorsements in
form and substance reasonably acceptable to the Agent for insurance policies providing coverage for
the Collateral. In the event the Borrower or any of its Subsidiaries at any time or times
hereafter shall fail to obtain or maintain any of the policies or insurance required herein or to
pay any premium in whole or in part relating thereto, then the Agent, without waiving or releasing

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any obligations or resulting Default hereunder, may at any time or times thereafter (but shall
be under no obligation to do so) obtain and maintain such policies of insurance and pay such
premiums and take any other action with respect thereto which the Agent, acting reasonably, deems
advisable. All sums so disbursed by the Agent shall constitute part of the Obligations, payable as
provided in this Agreement. Each such policy providing coverage for the Collateral maintained by
the Borrower or a Subsidiary shall be subject to a provision that prevents the cancellation thereof
without thirty days’ prior written notice to the Borrower or the applicable Subsidiary, and the
Agent.

     6.7. Compliance with Laws. The Borrower will, and will cause each Subsidiary to,
comply with all laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards
to which it may be subject including, without limitation, (i) Section 302 and Section 906 of the
Sarbanes-Oxley Act of 2002, and (ii) all Environmental Laws, except where the Borrower believes in
good faith that the failure to do so could not reasonably be expected to cause or result in the
occurrence of a Material Adverse Effect.

     6.8. Maintenance of Properties. Subject to Section 6.12, the Borrower will, and will
cause each Subsidiary to, maintain, preserve, protect and keep its Property used in the operation
of its business in good repair, working order and condition, (ordinary wear and tear excepted), and
make all necessary repairs, renewals and replacements so that its business carried on in connection
therewith may be properly conducted at all times in the ordinary course; provided,
however, that the foregoing shall not prohibit, limit or impair the Borrower’s or any
Subsidiary’s ability to sell or discontinue the use of, in its reasonable business judgment, any
Property.

     6.9. Inspection; Keeping of Books and Records. The Borrower will, and will cause each
Subsidiary to, permit the Agent, by its respective representatives and agents, to inspect any of
the Property, books and financial records of the Borrower and each Subsidiary (including all
insurance policies), to examine and make copies of the books of accounts and other financial
records of the Borrower and each Subsidiary, and to discuss the affairs, finances and accounts of
the Borrower and each Subsidiary with, and to be advised as to the same by, their respective
officers at such reasonable times and intervals as the Agent may designate. The Borrower shall
keep and maintain, and cause each of its Subsidiaries to keep and maintain, in all material
respects, proper books of record and account in which entries in conformity with Agreement
Accounting Principles shall be made of all dealings and transactions in relation to their
respective businesses and activities. If a Default has occurred and is continuing, the Borrower,
shall turn over copies of any such records to the Agent or its representatives as the Agent shall
reasonably request. The Agent agrees that it shall conduct any such inspection or examination in
reasonable accordance with the Borrower’s and its Subsidiaries’ safety policies and procedures and
shall not materially interfere with or impair the Borrower’s or its Subsidiaries’ operations.

     6.10. Restricted Payments. The Borrower will not, nor will it permit any Subsidiary
to, declare or pay any dividend or make any distribution on its capital stock (other than dividends
or other distributions payable in its own capital stock) or redeem, repurchase or otherwise acquire
or retire any of its capital stock at any time outstanding (any of the foregoing, a “Restricted
Payment”), except that:

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          (a) any Subsidiary may declare and pay dividends or make distributions to the Borrower or any
Subsidiary Guarantor or redeem, repurchase or otherwise acquire or retire any of its capital stock;

          (b) the Borrower and its Subsidiaries may make a Restricted Payment in any amount so long as
no Revolving Loans are outstanding immediately before or after making such Restricted Payment and
so long as no Default exists at the time of declaration thereof; or

          (c) the Borrower and its Subsidiaries may make a Restricted Payment in any amount so long as
immediately before the time of declaration of such Restricted Payment, (i) no Default or Unmatured
Default exists, (ii) Excess Availability equals or exceeds 20% of the Borrowing Base then in effect
and shall remain equal to or in excess of 20% for the remainder of the day on which such
declaration is made, and (iii) the “Fixed Charge Coverage Ratio” as calculated in Section 6.21 on a
rolling four quarter basis for the quarter most recently ended exceeds 1.15 to 1.00, in each case
on a pro forma basis after giving effect to such Restricted Payment as of the date of such
declaration.

     6.11. Merger. The Borrower will not, nor will it permit any Subsidiary to, merge or
consolidate with or into any other Person, except that a Subsidiary may merge into the Borrower or
a Wholly Owned Subsidiary that is party to the Guaranty and the Borrower may merge with or into any
Person so long and the Borrower is the surviving Person.

     6.12. Sale of Assets. The Borrower will not, nor will it permit any Subsidiary to,
lease, sell or otherwise dispose of its Property to any other Person, except:

     6.12.1 Sales of inventory in the ordinary course of business.

     6.12.2 A disposition of assets by a Subsidiary to the Borrower or a Subsidiary
Guarantor or by the Borrower to a Subsidiary Guarantor.

     6.12.3 A disposition of obsolete property, property no longer used in the business of
the Borrower or its Subsidiaries or other assets in the ordinary course of business of the
Borrower or any Subsidiary.

     6.12.4 Sales of Retail Property.

     6.12.5 In addition to each of the other sales, leases or dispositions provided for in
this Section 6.12, the Borrower and its Subsidiaries may enter into sales or other
dispositions of any of its Property other than (i) the Golden Eagle Refinery or (ii) the Los
Angeles Refinery, so long as immediately before and after making such sale, or disposition,
on a pro forma basis (i) no Default or Unmatured Default exists, (ii) Excess Availability
equals or exceeds 20% of the Borrowing Base then in effect and shall remain equal to or in
excess of 20% for the remainder of the day on which said sale or disposition is made and
(iii) the “Fixed Charge Coverage Ratio” as calculated in Section 6.21 on a rolling four
quarter basis for the quarter most recently ended exceeds 1.15 to 1.00.

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     6.13. Investments and Acquisitions. The Borrower will not, nor will it permit any
Subsidiary to, make any Investments (including without limitation, loans and advances to, and other
Investments in, Subsidiaries), or contractual commitments therefor, or to create any Subsidiary or
to become or remain a partner in any partnership or joint venture, or to make any Acquisition of
any Person, except:

     6.13.1 Cash Equivalent Investments.

     6.13.2 Existing Investments in Subsidiary Guarantors and other Investments in existence
on the date hereof and described in Schedule 6.13.

     6.13.3 The 2007 Shell Acquisition.

     6.13.4 Other Acquisitions or Investments meeting the following requirements, or
otherwise approved by the Required Lenders (each such Acquisition or Investment constituting
a “Permitted Acquisition”):

	 	(i)	 	immediately before and after the consummation of such Acquisition or
Investment, no Default or Unmatured Default shall have occurred and be continuing or
would result from such Acquisition or Investment, and the representation and warranty
contained in Section 5.11 shall be true both before and after giving effect to such
Acquisition or Investment;
	 
	 	(ii)	 	such Acquisition or Investment is consummated on a non-hostile basis pursuant
to a negotiated acquisition agreement approved by the board of directors or other
applicable governing body of the seller or entity to be acquired, and no material
challenge to such Acquisition or Investment (excluding the exercise of appraisal
rights) shall be pending by any shareholder or director of the seller or entity to be
acquired;
	 
	 	(iii)	 	immediately before and after making such Acquisition or Investment, on a pro
forma basis (x) Excess Availability equals or exceeds 20% of the Borrowing Base then in
effect and shall remain equal to or in excess of 20% for the remainder of the day on
which said Acquisition or Investment is made, and (y) the “Fixed Charge Coverage Ratio”
as calculated in Section 6.21 on a rolling four quarter basis for the quarter most
recently ended exceeds 1.15 to 1.00; and
	 
	 	(iv)	 	with respect to each Permitted Acquisition for which the consideration paid
exceeds $100,000,000, the Borrower shall provide notice thereof to the Agent at least
thirty (30) days prior to the consummation thereof and, promptly after Agent’s request
therefor, Borrower shall deliver to Agent all material agreements, documents and
instruments in respect of such Permitted Acquisition, including, without limitation,
the purchase, sale or transfer agreements therefor, pro forma financial information
necessary to determine the Borrower’s and its Subsidiaries’ compliance with the terms
of this Agreement after giving effect to such Permitted Acquisition, and all collateral
and guaranty documents required by this Agreement (including all field audits for
Property the Borrower wishes to include in the Borrowing Base).

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     6.14. Indebtedness. The Borrower will not, nor will it permit any Subsidiary to,
create, incur or suffer to exist any Indebtedness, except:

     6.14.1 The Obligations.

     6.14.2 Indebtedness existing on the date hereof and described in Schedule 6.14,
together with any Refinancing Indebtedness in respect thereof.

     6.14.3 Indebtedness arising under Rate Management Transactions;

     6.14.4 Purchase money Indebtedness, whether secured or unsecured (including Capitalized
Leases), incurred by the Borrower or any of its Subsidiaries after the Closing Date to
finance the acquisition of assets used in its business, if (1) at the time of such
incurrence, no Default or Unmatured Default has occurred and is continuing or would result
from such incurrence, and (2) such Indebtedness does not exceed $250,000,000 in the
aggregate outstanding at any time, (such Indebtedness being referred to herein as
“Permitted Purchase Money Indebtedness”).

     6.14.5 Indebtedness arising from intercompany loans and advances (i) made by any
Subsidiary to the Borrower or any Subsidiary Guarantor, (ii) made by the Borrower to any
Subsidiary Guarantor, or (iii) made by the Borrower to any Excluded Subsidiary or
Wholly-Owned Subsidiary not constituting a Subsidiary Guarantor in an aggregate principal
amount in Dollars not to exceed $10,000,000 at any time for all such Indebtedness under this
clause (iii); provided that all such Indebtedness shall be expressly subordinated to
the Secured Obligations.

     6.14.6 Indebtedness not described in or otherwise subject to Sections 6.14.1 through
6.14.5 that is unsecured and that does not at any time exceed an aggregate amount equal to
$75,000,000; provided, however, that the Borrower shall not incur more than
$25,000,000 of unsecured Indebtedness under this Section 6.14.6 without the Agent’s prior
consent.

     6.14.7 Indebtedness in an aggregate amount not to exceed $500,000,000 at any time
arising under or in connection with Letters of Credit (other than Facility LCs) issued for
the account of the Borrower or any Subsidiary thereof; provided, that such Letters
of Credit shall only be used in connection with the Borrower’s or such Subsidiary’s
acquisition of Petroleum Inventory outside of the United States of America.

     6.14.8 Indebtedness arising under the Interim Financing Documents in an aggregate
principal amount not to exceed $700,000,000 together with any Refinancing Indebtedness in
respect thereof.

     6.15. Liens. The Borrower will not, nor will it permit any Subsidiary to, create,
incur, or suffer to exist any Lien in, of or on the Property of the Borrower or any of its
Subsidiaries, except for the following, which are permitted hereunder:

     6.15.1 Liens, if any, securing Secured Obligations.

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     6.15.2 Liens for taxes, assessments or governmental charges or levies on its Property
if the same shall not at the time be delinquent or thereafter can be paid without penalty,
or are being contested in good faith and by appropriate proceedings and for which adequate
reserves in accordance with Agreement Accounting Principles shall have been set aside on its
books.

     6.15.3 Liens for landlords’, wage earners’, carriers’, warehousemen’s and mechanics’
liens and other similar liens arising in the ordinary course of business which secure
payment of obligations not more than 180 days past due or which are being contested in good
faith by appropriate proceedings and for which adequate reserves in accordance with
Agreement Accounting Principles shall have been set aside on its books.

     6.15.4 Liens arising out of pledges or deposits under worker’s compensation laws,
unemployment insurance, old age pensions, or other social security or retirement benefits,
or similar legislation.

     6.15.5 Liens existing on the date hereof and described in Schedule 6.15.

     6.15.6 Deposits securing liability to insurance carriers under insurance or
self-insurance arrangements.

     6.15.7 Deposits to secure the performance of bids, trade contracts (other than for
borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature incurred in the ordinary course of business.

     6.15.8 Easements, reservations, rights-of-way, restrictions, survey exceptions and
other similar encumbrances as to real property of the Borrower and its Subsidiaries which
customarily exist on properties of Persons engaged in similar activities and similarly
situated and which do not materially interfere with the conduct of the business of the
Borrower or such Subsidiary conducted at the property subject thereto.

     6.15.9 Liens arising by reason of any judgment, decree or order of any court or other
governmental authority, if appropriate legal proceedings are being diligently prosecuted and
shall not have been finally terminated or the period within which such proceedings may be
initiated shall not have expired, in an aggregate amount not to at any time exceed
$30,000,000.

     6.15.10 Liens existing on any asset of any Subsidiary of the Borrower at the time such
Subsidiary becomes a Subsidiary and not created in contemplation of such event.

     6.15.11 Liens on any asset securing Indebtedness incurred or assumed for the purpose of
financing or refinancing all or any part of the cost of acquiring or constructing such
asset; provided that such Lien attaches to such asset concurrently with or within
eighteen (18) months after the acquisition or completion or construction thereof.

     6.15.12 Liens existing on any asset of any Subsidiary of the Borrower at the time such
Subsidiary is merged or consolidated with or into the Borrower or any Subsidiary and not
created in contemplation of such event.

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     6.15.13 Liens existing on any asset prior to the acquisition thereof by the Borrower or
any Subsidiary and not created in contemplation thereof; provided that such Liens do
not encumber any other property or assets (other than replacement assets as a result of a
casualty or condemnation event).

     6.15.14 Liens arising out of the refinancing, extension, renewal or refunding of any
Indebtedness secured by any Lien permitted under Sections 6.15.11 through 6.15.13;
provided that (a) such Indebtedness is not secured by any additional assets (other
than replacement assets as a result of a casualty or condemnation event), and (b) the amount
of such Indebtedness secured by any such Lien is not increased.

     6.15.15 Purchase money Liens securing Permitted Purchase Money Indebtedness (as defined
in Section 6.14); provided, that such Liens shall not apply to any property of the
Borrower or its Subsidiaries (other than replacement assets as a result of a casualty or
condemnation event) other than that purchased with the proceeds of such Permitted Purchase
Money Indebtedness.

     6.15.16 any Lien securing Indebtedness, neither assumed nor guaranteed by the Borrower
or any of its Subsidiaries nor on which it customarily pays interest, existing upon real
estate or rights in or relating to real estate acquired by the Borrower for refining,
substation, metering station, pump station, storage, gathering line, transmission line,
transportation line, distribution line or for right-of-way purposes, any Liens reserved in
leases for rent and for compliance with the terms of the leases in the case of leasehold
estates, to the extent that any such Lien referred to in this Section 6.15.16 does not
materially impair the use of the Property covered by such Lien for the purposes of which
such Property is held by the Borrower or any of its Subsidiaries.

     6.15.17 Liens arising under ERISA provided that such Liens do not secure liabilities
which, in the aggregate, equal or exceed $5,000,000.

     6.15.18 any obligations or duties affecting any of the Property of the Borrower or its
Subsidiaries to any municipality or public authority with respect to any franchise, grant,
license or permit which do not materially impair the use of such Property for the purposes
for which it is held.

     6.15.19 defects, irregularities and deficiencies in title of any rights of way or other
Property constituting real estate of the Borrower or any Subsidiary thereof which in the
aggregate do not materially impair the use of such rights of way or other Property
constituting real estate for the purposes for which such rights of way and other Property
constituting real estate are held by the Borrower or any Subsidiary, and defects,
irregularities and deficiencies in title to any Property constituting real estate of the
Borrower or its Subsidiaries, which defects, irregularities or deficiencies have been cured
by possession under applicable statues of limitation.

     6.15.20 any interest or title of a lessor under any lease entered into by the Borrower
or any other Subsidiary in the ordinary course of its business and covering only the assets
so leased.

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     6.15.21 Liens in favor of collecting or payor banks having a right of setoff,
revocation, refund or chargeback with respect to money or instruments of the Borrower or any
of its Subsidiaries on deposit with or in possession of such bank.

     6.15.22 Liens upon Retail Property not constituting Collateral.

     6.15.23 Liens in favor of counterparties arising in connection with the Borrower’s or
any Subsidiary’s commodity hedging activities, including, without limitation, hydrocarbon
hedging.

     6.15.24 Liens securing Indebtedness incurred pursuant to Section 6.14.7;
provided, that none of the Borrower’s or any Subsidiary’s Property, other than
Petroleum Inventory directly acquired through the use of those Letters of Credit described
in Section 6.14.7, shall be subject to any such Lien.

     6.16. Affiliates. The Borrower will not, and will not permit any Subsidiary to, enter
into any transaction (including, without limitation, the purchase or sale of any Property or
service) with, or make any payment or transfer to, any Affiliate (other than the Borrower and its
Subsidiaries) except in the ordinary course of business and pursuant to the reasonable requirements
of the Borrower’s or such Subsidiary’s business and upon fair and reasonable terms no less
favorable to the Borrower or such Subsidiary than the Borrower or such Subsidiary would obtain in a
comparable arm’s-length transaction.

     6.17. Financial Contracts. The Borrower will not, nor will it permit any Subsidiary
to, enter into or remain liable upon any Rate Management Transactions except for those entered into
in the ordinary course of business for bona fide hedging purposes and not for speculative purposes.

     6.18. Subsidiary Covenants. The Borrower will not, and will not permit any Subsidiary
to, create or otherwise cause to become effective any consensual encumbrance or restriction of any
kind on the ability of any Subsidiary (i) to pay dividends or make any other distribution on its
stock, (ii) to pay any Indebtedness or other obligation owed to the Borrower or any other
Subsidiary, (iii) to make loans or advances or other Investments in the Borrower or any other
Subsidiary, or (iv) to sell, transfer or otherwise convey any of its property to the Borrower or
any other Subsidiary.

     6.19. Contingent Obligations. The Borrower will not, nor will it permit any
Subsidiary to, make or suffer to exist any Contingent Obligation (including, without limitation,
any Contingent Obligation with respect to the obligations of a Subsidiary), except (i) by
endorsement of instruments for deposit or collection in the ordinary course of business, (ii) the
Reimbursement Obligations, (iii) any guaranty of the Secured Obligations, (iv) Contingent
Obligations arising in connection with Indebtedness permitted under Section 6.14 and (v) Contingent
Obligations in respect of obligations (other than Indebtedness) entered into in the ordinary course
of business.

     6.20. [Intentionally Omitted].

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     6.21. Fixed Charge Coverage Ratio. The Borrower, as of the end of each of its fiscal
quarters, will not permit the ratio of (x) Consolidated EBITDA, minus expenses for cash
federal income taxes paid, minus Net Consolidated Capital Expenditures, minus
Restricted Payments, to (y) Fixed Charges, all calculated on a rolling four-quarter basis for the
Borrower and its Subsidiaries, on a consolidated basis, and without duplication with respect to
Capitalized Leases, to be less than 1.00 to 1.00 for each such fiscal quarter, beginning with the
fiscal quarter ending June 30, 2007; provided, however, that if the aforementioned
ratio shall at any time be less than 1.00 to 1.00 for any fiscal quarter then the Standard Reserve
shall be recalculated in accordance with terms of the definition of “Standard Reserve”.

     6.22. Minimum Consolidated Tangible Net Worth. The Borrower will at all times
maintain Consolidated Tangible Net Worth of not less than (i) $1,800,000,000, plus (ii) 75% of
Consolidated Net Income (if positive) earned in each fiscal quarter beginning with the fiscal
quarter ending March 31, 2007, plus (iii) 75% of the amount of all Net Cash Proceeds resulting from
any issuance of the Borrower’s or any Subsidiary’s capital stock (other than the issuance of such
stock to the Borrower or a Subsidiary).

     6.23. Subsidiary Collateral Documents; Subsidiary Guarantors. The Borrower shall
execute or shall cause to be executed:

(i) on the date any Person that is organized under the laws of the United States or any
political subdivision thereof becomes a Subsidiary of the Borrower, (a) a supplement to the
Guaranty pursuant to which such Person shall become a party thereto; provided, that
such Person shall not guaranty any of its own obligations owing to the Holders of Secured
Obligations or Secured Obligations that arose prior to its becoming a party to the Guaranty,
(b) a Security Agreement in substantially the form executed on April 17, 2003 (or a
supplement thereto); and (c) a supplement to Schedule 5.8 identifying the applicable
additional new Subsidiary Guarantor;

(ii) in order to further effect the requirements of this Section 6.23, the Borrower shall
deliver or cause to be delivered to the Agent all Collateral Documents, together with
appropriate corporate resolutions and other documentation (including opinions of counsel,
UCC financing statements, and such other documents as shall be reasonably requested to
perfect the Agent’s Lien), in each case in form and substance reasonably satisfactory to the
Agent, necessary to reasonably satisfy the Agent that it has a first priority perfected
pledge of, security interest in and Lien upon the Collateral owned by such new Subsidiary
Guarantor subject to Liens permitted pursuant to Section 6.15;

(iii) The Borrower shall cause each Subsidiary Guarantor to acknowledge and agree that such
Subsidiary Guarantor’s entry into the Guaranty is a condition to and is given as an
inducement for and in consideration of credit accommodations extended to the Borrower under
this Agreement and the other Loan Documents and not for any credit accommodation extended to
such Subsidiary Guarantor.

(iv) This Section 6.23 shall not apply with respect to Excluded Subsidiaries, including,
without limitation, Pipeline Subsidiaries.

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     6.24. Insurance Proceeds. The Borrower directs (and, if applicable, shall cause its
Subsidiaries to direct) all insurers under policies relating to Property constituting Collateral to
pay all proceeds payable under such policies or with respect to such claim or award for any loss
with respect to the Collateral directly to the Agent, for the benefit of the Agent and the Holders
of the Secured Obligations; provided, however, in the event that such proceeds or
awards are less than $10,000,000 (“Excluded Proceeds”), unless a Default shall have
occurred and be continuing, the Agent shall remit such Excluded Proceeds to the Borrower. Such
amounts shall reduce outstanding principal Obligations pursuant to the mandatory prepayment
provision of Section 2.2. Each such policy shall contain a long-form loss-payable endorsement
naming the Agent as lender loss payee, which endorsement shall be in form and substance acceptable
to the Agent. The foregoing shall not apply to Property that does not constitute Collateral.

     6.25. Collection Accounts. The Borrower and its Subsidiaries shall cause the majority
of their deposit, collection and other cash management accounts to be maintained with JPMorgan or
an Affiliate thereof. The Borrower and its Subsidiaries shall cause all collections of Receivables
constituting Collateral and all proceeds of Collateral to be directly deposited into collection
accounts (such accounts, “Collection Accounts”). Collection Accounts maintained with
JPMorgan shall be subject to account control agreements, in form and substance acceptable to the
Agent, which grant the Agent control over and a first-priority perfected security interest in such
Collection Accounts, including, without limitation, amounts and other items on deposit therein.
Amounts and other items on deposit in Collection Accounts that are not maintained with JPMorgan or
an Affiliate thereof shall be transferred at least once a week to one or more Collection Accounts
maintained with JPMorgan or an Affiliate thereof. If any collections are received by the Borrower,
a Subsidiary, or any other Person, such collections shall be deemed to have been received by the
Borrower, such Subsidiary or such other Person in trust for the Agent, and, upon the Borrower’s,
such Subsidiary’s, or such other Person’s receipt thereof, the Borrower shall (or shall cause such
Subsidiary or other Person to) immediately remit all of such collections, in their original form,
to the Agent, JPMorgan or an Affiliate thereof for deposit into a Collection Account. Following
the occurrence and during the continuance of a Default, all amounts received by the Agent, all
amounts on deposit in the Collection Accounts, and all amounts constituting collections required to
be deposited into Collection Accounts shall be the sole property of the Agent for the benefit of
the Holders of Secured Obligations and shall be deemed received by the Agent for application to the
Secured Obligations pursuant to the terms of this Agreement. With respect to any Collection
Account described in this Section 6.25, the Borrower and its Subsidiaries shall have 90 days from
the later of the Closing Date and the date on which such Collection Account is opened or converted
to cause such account to become subject to one of the aforementioned account control agreements.
Notwithstanding the foregoing, or anything to the contrary in Section 2.11.1, at all times that (i)
no Default exists and (ii) Excess Availability equals or exceeds $300,000,000, amounts which are on
deposit in Collection Accounts shall be released, in a manner mutually satisfactory to the Borrower
and the Agent, on a daily basis to the Borrower’s operating accounts maintained with JPMorgan Chase
Bank, National Association.

     6.26. Repayment of Indebtedness. The Borrower will not, and will not permit any
Subsidiary to, make any amendment or modification to any indenture, note agreement or other
agreement, document or instrument evidencing or governing Subordinated Indebtedness or directly or
indirectly voluntarily prepay, defease, or in substance defease, purchase, redeem,

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retire, or otherwise acquire, any Indebtedness unless, with respect to a prepayment,
defeasance, purchase, redemption, retirement or acquisition, immediately before and after giving
effect thereto the Indebtedness Prepayments Conditions have been satisfied. The foregoing shall
not prohibit the Borrower’s voluntary repayment of the Indebtedness evidenced by the Interim
Financing Documents and the Indebtedness Prepayments Conditions need not be satisfied prior to the
voluntary repayment of the Indebtedness evidenced by the Interim Financing Documents to the extent
that such voluntary repayment is made with proceeds of the Borrower’s unsecured fixed rate senior
notes described in clause (i) of the definition of “Senior Note Documents”. For the avoidance of
doubt, nothing in this Section 6.26 shall be construed to limit or restrict the Borrower’s ability
to make mandatory payments or mandatory prepayments in accordance with the terms of the Interim
Financing Documents.

     6.27. Multiemployer Plans. Except as provided in Schedule 5.9, the Borrower will not,
nor will it permit any Subsidiary to, become a party to a Multiemployer Plan.

ARTICLE VII

DEFAULTS

     The occurrence of any one or more of the following events shall constitute a Default:

     7.1. Any representation or warranty made or deemed made by or on behalf of the Borrower or any
of its Subsidiaries to the Lenders or the Agent under or in connection with this Agreement, any
Credit Extension, or any certificate or information delivered in connection with this Agreement or
any other Loan Document shall be false in any material respect on the date as of which made or
deemed made.

     7.2. Nonpayment of (i) principal of any Loan when due, (ii) any Reimbursement Obligation
within one Business Day after the same becomes due, or (iii) interest upon any Loan or any
Commitment Fee, LC Fee, or other Obligations under any of the Loan Documents within three (3)
Business Days after such interest, fee or other Obligation becomes due.

     7.3. The breach by the Borrower of any of the terms or provisions of Section 6.1.11, 6.2, 6.3,
6.10, 6.11, 6.12, 6.13, 6.14, 6.15 (to the extent related to or affecting Property constituting or
required to constitute Collateral), 6.16, 6.17, 6.21, 6.22, 6.25, 6.26, or 6.27.

     7.4. The breach by the Borrower (other than a breach which constitutes a Default under another
Section of this Article VII) of:

     (i) Section 6.1.9 (solely with respect to the Interim Collateral Reports described therein) or
Section 6.15 (to the extent related to or affecting Property not constituting or not required to
constitute Collateral) and such breach is not remedied within five (5) Business Days of the earlier
to occur of (x) written notice from the Agent or any Lender to the Borrower or (y) an Authorized
Officer otherwise has knowledge of any such breach;

     (ii) Section 6.1.1, 6.1.2, 6.1.3, 6.1.4, 6.1.9 (solely with respect to the Monthly Collateral
Reports described therein), 6.1.10, 6.1.12, 6.1.13, 6.6, 6.9 or 6.24 and such breach is

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not remedied within ten (10) Business Days of written notice from the Agent or any Lender to
the Borrower; or

     (iii) any of the other terms or provisions of this Agreement or any Loan Document which is not
remedied within thirty (30) Business Days after the earlier to occur of (x) written notice from the
Agent or any Lender to the Borrower or (y) an Authorized Officer otherwise has knowledge of any
such breach.

     7.5. Failure of the Borrower or any of its Subsidiaries to pay when due any Material
Indebtedness; or the default by the Borrower or any of its Subsidiaries in the performance (beyond
the applicable grace period with respect thereto, if any) of any term, provision or condition
contained in any Material Indebtedness Agreement, or any other event shall occur or condition
exist, the effect of which default, event or condition is to cause, or to permit the holder(s) of
such Material Indebtedness or the lender(s) under any Material Indebtedness Agreement to cause,
such Material Indebtedness to become due prior to its stated maturity or any commitment to lend
under any Material Indebtedness Agreement to be terminated prior to its stated expiration date; or
any Material Indebtedness of the Borrower or any of its Subsidiaries shall be declared to be due
and payable or required to be prepaid or repurchased (other than by a regularly scheduled payment)
prior to the stated maturity thereof; or the Borrower or any of its Subsidiaries shall not pay, or
admit in writing its inability to pay, its debts generally as they become due.

     7.6. The Borrower or any of its Subsidiaries shall (i) have an order for relief entered with
respect to it under the Federal bankruptcy laws as now or hereafter in effect, (ii) make an
assignment for the benefit of creditors, (iii) apply for, seek, consent to, or acquiesce in, the
appointment of a receiver, custodian, trustee, examiner, liquidator or similar official for it or
any Substantial Portion of its Property, (iv) institute any proceeding seeking an order for relief
under the Federal bankruptcy laws as now or hereafter in effect or seeking to adjudicate it a
bankrupt or insolvent, or seeking dissolution, winding up, liquidation, reorganization,
arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors or fail to file an answer or other pleading
denying the material allegations of any such proceeding filed against it, (v) take any corporate or
partnership action to authorize or effect any of the foregoing actions set forth in this Section
7.6 or (vi) fail to contest in good faith any appointment or proceeding described in Section 7.7.

     7.7. Without the application, approval or consent of the Borrower or any of its Subsidiaries,
a receiver, trustee, examiner, liquidator or similar official shall be appointed for the Borrower
or any of its Subsidiaries or any Substantial Portion of its Property, or a proceeding described in
Section 7.6(iv) shall be instituted against the Borrower or any of its Subsidiaries and such
appointment continues undischarged or such proceeding continues undismissed or unstayed for a
period of 45 consecutive days.

     7.8. Any court, government or governmental agency shall condemn, seize or otherwise
appropriate, or take custody or control of, all or any portion of the Property of the Borrower and
its Subsidiaries which, when taken together with all other Property of the Borrower and its
Subsidiaries so condemned, seized, appropriated, or taken custody or control of, during the

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twelve-month period ending with the month in which any such action occurs, constitutes a
Substantial Portion.

     7.9. The Borrower or any of its Subsidiaries shall fail within 30 days to pay, bond or
otherwise discharge one or more (i) judgments or orders for the payment of money in excess of
$30,000,000 (or the equivalent thereof in currencies other than Dollars) in the aggregate, or (ii)
nonmonetary judgments or orders which, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect, which judgment(s), in any such case, is/are not stayed
on appeal or otherwise being appropriately contested in good faith.

     7.10. The Unfunded Liabilities of all Single Employer Plans shall exceed $75,000,000 in the
aggregate, or any Reportable Event shall occur in connection with any Plan.

     7.11. Any Change in Control shall occur.

     7.12. The Borrower or any of its Subsidiaries shall (i) be the subject of any proceeding or
investigation pertaining to the release by the Borrower, any of its Subsidiaries or any other
Person of any toxic or hazardous waste or substance into the environment, or (ii) violate any
Environmental Law, which, in the case of an event described in clause (i) or clause (ii), would
reasonably be expected to result in a Material Adverse Effect.

     7.13. Any Loan Document shall fail to remain in full force or effect or any action shall be
taken by the Borrower or any Subsidiary Guarantor to discontinue or to assert the invalidity or
unenforceability of any Loan Document or any Lien in favor of the Agent under the Loan Documents,
or such Lien shall not have the priority contemplated by the Loan Documents.

     7.14. An event (such event, an “Off-Balance Sheet Trigger Event”) shall occur which
(i) permits the investors or purchasers in respect of Off-Balance Sheet Liabilities of the Borrower
or any Affiliate of the Borrower to require the amortization or liquidation of such Off-Balance
Sheet Liabilities and (x) such Off-Balance Sheet Trigger Event shall not be remedied or waived
within the later to occur of the tenth day after the occurrence thereof or the expiry date of any
grace period related thereto under the agreement evidencing such Off-Balance Sheet Liabilities, or
(y) such investors shall require the amortization or liquidation of such Off-Balance Sheet
Liabilities as a result of such Off-Balance Sheet Trigger Event, (ii) results in the termination of
reinvestments of collections or proceeds of receivables and related assets under the agreements
evidencing such Off-Balance Sheet Liabilities other than as a result of the termination or
expiration of the agreement creating such Off-Balance Sheet Liability upon maturity, or (iii)
causes or otherwise permits the replacement or substitution of the Borrower or any Affiliate
thereof as the servicer under the agreements evidencing such Off-Balance Sheet Liabilities;
provided, however, that this Section 7.14 shall not apply on any date with respect
to any voluntary request by the Borrower or an Affiliate thereof for an above-described
amortization, liquidation, or termination of reinvestments so long as the aforementioned investors
or purchasers cannot independently require on such date such amortization, liquidation or
termination of reinvestments.

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ARTICLE VIII

ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES

     8.1. Acceleration. (i) If any Default described in Section 7.6 or 7.7 occurs with
respect to the Borrower, the obligations of the Lenders to make Loans hereunder, and the obligation
and power of the LC Issuers to issue Facility LCs shall automatically terminate and the Secured
Obligations shall immediately become due and payable without any election or action on the part of
the Agent, any LC Issuer, or any Lender. With respect to Facility LCs, the Borrower will be and
become thereby unconditionally obligated, without any further notice, act or demand, to pay the
Agent an amount in immediately available funds, which funds shall be held in the Facility LC
Collateral Account, equal to the difference of (x) the amount of LC Obligations at such time less
(y) the amount or deposit in the Facility LC Collateral Account at such time which is free and
clear of all rights and claims of third parties and has not been applied against the Obligations
(the “Collateral Shortfall Amount”). If any other Default occurs, the Required Lenders (or
the Agent with the consent of the Required Lenders) may (a) terminate or suspend the obligations of
the Lenders to make Loans hereunder and the obligation and power of the LC Issuers to issue
Facility LCs, or declare the Secured Obligations to be due and payable, or both, whereupon the
Secured Obligations shall become immediately due and payable, without presentment, demand, protest
or notice of any kind, all of which the Borrower hereby expressly waives and (b) upon notice to the
Borrower and in addition to the continuing right to demand payment of all amounts payable under
this Agreement, make demand on the Borrower to pay, and the Borrower will forthwith upon such
demand and without any further notice or act pay to the Agent the Collateral Shortfall Amount which
funds shall be deposited in the Facility LC Collateral Account.

     (ii) If at any time while any Default is continuing, the Agent determines that the Collateral
Shortfall Amount at such time is greater than zero, the Agent may make demand on the Borrower to
pay, and the Borrower will, forthwith upon such demand and without any further notice or act, pay
to the Agent the Collateral Shortfall Amount, which funds shall be deposited in the Facility LC
Collateral Account.

     (iii) The Agent may at any time or from time to time after funds are deposited in the Facility
LC Collateral Account, apply such funds to the payment of the Secured Obligations and any other
amounts as shall from time to time have become due and payable by the Borrower to the Lenders or
the LC Issuers under the Loan Documents.

     (iv) At any time while any Default is continuing, neither the Borrower nor any Person
claiming on behalf of or through the Borrower shall have any right to withdraw any of the funds
held in the Facility LC Collateral Account. After all of the Secured Obligations have been paid in
full in cash and the Aggregate Revolving Loan Commitment has been terminated, any funds remaining
in the Facility LC Collateral Account shall be returned promptly by the Agent to the Borrower or
paid to whomever may be legally entitled thereto at such time.

     (v) If, after acceleration of the maturity of the Obligations or termination of the
obligations of the Lenders to make Loans and the obligation and power of the LC Issuers to issue
Facility LCs hereunder as a result of any Default (other than any Default as described in Section

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7.6 or 7.7 with respect to the Borrower) and before any judgment or decree for the payment of
the Obligations due shall have been obtained or entered, the Required Lenders (in their sole
discretion) shall so direct, the Agent shall, by notice to the Borrower, rescind and annul such
acceleration and/or termination.

     8.2. Amendments. Subject to the provisions of this Section 8.2, the Required Lenders
(or the Agent with the consent in writing of the Required Lenders) and the Borrower may enter into
agreements supplemental hereto for the purpose of adding or modifying any provisions to the Loan
Documents or changing in any manner the rights of the Lenders or the Borrower hereunder or
thereunder or waiving any Default hereunder or thereunder; provided, however, that
no such supplemental agreement shall, without the consent of all of the Lenders:

     8.2.1 Extend the Termination Date, extend the final maturity of any Loan, extend the
expiry date of any Facility LC to a date after the Termination Date, or postpone any
regularly scheduled payment of principal of any Loan or forgive all or any portion of the
principal amount thereof, or any Reimbursement Obligation related thereto, or reduce the
rate or extend the time of payment of interest or fees thereon or Reimbursement Obligations
related thereto (other than (x) a waiver of the application of the default rate of interest
pursuant to Section 2.10 hereof and (y) any reduction of the amount of or any extension of
the payment date for the mandatory payments required under Section 2.2 (other than Section
2.2.1), in each case which shall only require the approval of the Required Lenders).

     8.2.2 Reduce the percentage specified in the definition of Required Lenders or any
other percentage of Lenders specified to be the applicable percentage in this Agreement to
act on specified matters or amend the definitions of “Required Lenders” or “Pro Rata Share.”

     8.2.3 Increase the amount of the Revolving Loan Commitment of any Lender hereunder or
the commitment to issue Facility LCs or permit the Borrower to assign its rights or
obligations under this Agreement.

     8.2.4 Amend, modify or waive this Section 8.2.

     8.2.5 Other than in connection with a transaction permitted under this Agreement,
release in any calendar year Collateral with an aggregate value equal to or in excess of
$50,000,000.

     8.2.6 Other than in connection with a transaction permitted under this Agreement,
release any Subsidiary party to the Guaranty from its obligations thereunder.

     8.2.7 Increase the advance rate percentages for Perfected Cash Interests, Eligible
Receivables and Eligible Petroleum Inventory set forth in the definition of Borrowing Base
as of the Closing Date.

     8.2.8 Amend, modify or waive Section 11.1, Section 11.2, Section 11.3, or any other
provision of this Agreement requiring ratable payments to or disbursements by the Lenders.

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No amendment of any provision of this Agreement relating to the Agent shall be effective without
the written consent of the Agent. The Agent may waive payment of the fee required under Section
12.3.3 without obtaining the consent of any other party to this Agreement. No amendment of any
provision of this Agreement relating to the Non-Ratable Lender or any Non-Ratable Loan shall be
effective without the written consent of the Non-Ratable Lender. No amendment of any provision of
this Agreement relating to an LC Issuer shall be effective without the written consent of such LC
Issuer. The limit set forth in Section 2.1.2 on the aggregate amount of Collateral Protection
Advances that may be outstanding at any time shall not be increased without the written consent of
the Agent and the Lenders in the aggregate having 75% or more of the Aggregate Revolving Loan
Commitment; provided, however, that if all of the Revolving Loan Commitments have
been terminated, the consent of Lenders holding 75% or more of the Aggregate Outstanding Credit
Exposure shall be required to approve any such increase.

     8.3. Preservation of Rights. No delay or omission of the Lenders, the LC Issuers, or
the Agent to exercise any right under the Loan Documents shall impair such right or be construed to
be a waiver of any Default or an acquiescence therein, and the making of a Credit Extension
notwithstanding the existence of a Default or Unmatured Default or the inability of the Borrower to
satisfy the conditions precedent to such Credit Extension shall not constitute any waiver or
acquiescence. Any single or partial exercise of any such right shall not preclude other or further
exercise thereof or the exercise of any other right, and no waiver, amendment or other variation of
the terms, conditions or provisions of the Loan Documents whatsoever shall be valid unless in
writing signed by, or by the Agent with the consent of, the requisite number of Lenders required
pursuant to Section 8.2, and then only to the extent in such writing specifically set forth. All
remedies contained in the Loan Documents or by law afforded shall be cumulative and all shall be
available to the Agent, the LC Issuers, and the Lenders until all of the Secured Obligations have
been paid in full.

ARTICLE IX

GENERAL PROVISIONS

     9.1. Survival of Representations. All representations and warranties of the Borrower
contained in this Agreement shall survive the making of the Credit Extensions herein contemplated.

     9.2. Governmental Regulation. Anything contained in this Agreement to the contrary
notwithstanding, neither any LC Issuer nor any Lender shall be obligated to extend credit to the
Borrower in violation of any limitation or prohibition provided by any applicable statute or
regulation.

     9.3. Headings. Section headings in the Loan Documents are for convenience of
reference only, and shall not govern the interpretation of any of the provisions of the Loan
Documents.

     9.4. Entire Agreement. The Loan Documents embody the entire agreement and
understanding among the Borrower, the Agent, the LC Issuers, and the Lenders and supersede all

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prior agreements and understandings among the Borrower, the Agent, the LC Issuers, and the
Lenders relating to the subject matter thereof other than those contained in the fee letter
described in Section 10.13 which shall survive and remain in full force and effect during the term
of this Agreement.

THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

     9.5. Several Obligations; Benefits of this Agreement. The respective obligations of
the Lenders hereunder are several and not joint and no Lender shall be the partner or agent of any
other (except to the extent to which the Agent is authorized to act as such). The failure of any
Lender to perform any of its obligations hereunder shall not relieve any other Lender from any of
its obligations hereunder. This Agreement shall not be construed so as to confer any right or
benefit upon any Person other than the parties to this Agreement and their respective successors
and assigns, provided, however, that the parties hereto expressly agree that the
Arrangers shall enjoy the benefits of the provisions of Sections 9.6, 9.10 and 10.11 to the extent
specifically set forth therein and shall have the right to enforce such provisions on its own
behalf and in its own name to the same extent as if it were a party to this Agreement.

     9.6. Expenses; Indemnification. (i) The Borrower shall reimburse the Agent and the
Arrangers for any reasonable costs, internal charges and out-of-pocket expenses (including outside
attorneys’ and paralegals’ fees and time charges of attorneys for the Agent and expenses of and
fees for other advisors and professionals engaged by the Agent or the Arrangers) paid or incurred
by the Agent or the Arrangers in connection with the investigation, preparation, negotiation,
documentation, execution, delivery, syndication, distribution (including, without limitation, via
the internet), review, amendment, modification and administration of the Loan Documents. The
Borrower also agrees to reimburse the Agent, the Arrangers, the LC Issuers, and the Lenders for any
reasonable costs, internal charges and out-of-pocket expenses (including outside attorneys’ and
paralegals’ fees and time charges and expenses of attorneys and paralegals for the Agent, the
Arrangers, the LC Issuers, and the Lenders) paid or incurred by the Agent, the Arrangers, any LC
Issuer, or any Lender in connection with the collection and enforcement of the Loan Documents. In
addition to expenses set forth above, the Borrower agrees to reimburse, without duplication, the
Agent, as collateral agent, promptly after the Agent’s request therefor, for each audit, or other
business analysis performed by or for the benefit of the Holders of Secured Obligations in
connection with this Agreement or the other Loan Documents in an amount equal to the Agent’s then
customary charges for each person employed to perform such audit or analysis (which, solely with
respect to charges for audits of Collateral, shall not exceed a rate of $850 per day for the Agent
performing such audit), plus all reasonable costs and expenses (including without limitation,
travel expenses) incurred by the Agent in the performance of such audit or analysis.

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     (ii) The Borrower hereby further agrees to indemnify the Agent, each Arranger, each LC Issuer,
each Lender, and their respective affiliates, and each of their directors, officers and employees
against all losses, claims, damages, penalties, judgments, liabilities and expenses (including,
without limitation, all expenses of litigation or preparation therefor whether or not the Agent,
any Arranger, any LC Issuer, any Lender or any affiliate is a party thereto, and all reasonable
attorneys’ and paralegals’ fees, time charges and reasonable expenses of attorneys and paralegals
of the party seeking indemnification, which attorneys and paralegals may or may not be employees of
such party seeking indemnification) which any of them may pay or incur arising out of or relating
to this Agreement, the other Loan Documents, the transactions contemplated hereby or the direct or
indirect application or proposed application of the proceeds of any Credit Extension hereunder
except to the extent that they have resulted from the gross negligence or willful misconduct of the
party seeking indemnification. The obligations of the Borrower under this Section 9.6 shall
survive the termination of this Agreement.

     9.7. Numbers of Documents. All statements, notices, closing documents, and requests
hereunder shall be furnished to the Agent with sufficient counterparts so that the Agent may
furnish one to each of the Lenders, to the extent that the Agent deems necessary.

     9.8. Accounting. Except as provided to the contrary herein, all accounting terms used
in the calculation of any financial covenant or test shall be interpreted and all accounting
determinations hereunder in the calculation of any financial covenant or test shall be made in
accordance with Agreement Accounting Principles. If any changes in US GAAP are hereafter required
or permitted and are adopted by the Borrower or any of its Subsidiaries with the agreement of its
independent certified public accountants and such changes result in a change in the method of
calculation of any of the financial covenants, tests, restrictions or standards herein or in the
related definitions or terms used therein (“Accounting Changes”), the parties hereto agree,
at the Borrower’s request, to enter into negotiations, in good faith, in order to amend such
provisions in a credit neutral manner so as to reflect equitably such changes with the desired
result that the criteria for evaluating the Borrower’s and its Subsidiaries’ financial condition
shall be the same after such changes as if such changes had not been made; provided,
however, until such provisions are amended in a manner reasonably satisfactory to the Agent
and the Required Lenders, no Accounting Change shall be given effect in such calculations. In the
event such amendment is entered into, all references in this Agreement to Agreement Accounting
Principles shall mean US GAAP as of the date of such amendment. Notwithstanding the foregoing, all
financial statements to be delivered by the Borrower pursuant to Section 6.1 shall be prepared in
accordance with US GAAP in effect at such time.

     9.9. Severability of Provisions. Any provision in any Loan Document that is held to
be inoperative, unenforceable, or invalid in any jurisdiction shall, as to that jurisdiction, be
inoperative, unenforceable, or invalid without affecting the remaining provisions in that
jurisdiction or the operation, enforceability, or validity of that provision in any other
jurisdiction, and to this end the provisions of all Loan Documents are declared to be severable.

     9.10. Nonliability of Lenders. The relationship between the Borrower on the one hand
and the Lenders, the LC Issuers, and the Agent on the other hand shall be solely that of borrower
and lender. Neither the Agent, any Arranger, any LC Issuer, nor any Lender shall have any
fiduciary responsibilities to the Borrower. Neither the Agent, any Arranger, any LC Issuer, nor

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any Lender undertakes any responsibility to the Borrower to review or inform the Borrower of
any matter in connection with any phase of the Borrower’s business or operations. The Borrower
agrees that neither the Agent, any Arranger, any LC Issuer, nor any Lender shall have liability to
the Borrower (whether sounding in tort, contract or otherwise) for losses suffered by the Borrower
in connection with, arising out of, or in any way related to, the transactions contemplated and the
relationship established by the Loan Documents, or any act, omission or event occurring in
connection therewith, unless it is determined in a final non-appealable judgment by a court of
competent jurisdiction that such losses resulted from the gross negligence or willful misconduct of
the party from which recovery is sought. Neither the Agent, any Arranger, any LC Issuer, any
Lender, the Borrower or any Subsidiary Guarantor shall have any liability with respect to, and each
such Person hereby waives, releases and agrees not to sue for, any special, indirect, consequential
or punitive damages suffered by it in connection with, arising out of, or in any way related to the
Loan Documents or the transactions contemplated thereby.

     9.11. Confidentiality. Each Lender agrees to hold any confidential information which
it may receive from the Borrower pursuant to this Agreement in confidence, except for disclosure
(i) to its Affiliates and to other Lenders and their respective Affiliates, for use solely in
connection with the transactions contemplated hereby, (ii) to legal counsel, accountants, and other
professional advisors to such Lender or to a Transferee, in each case which have been informed as
to the confidential nature of such information, (iii) to regulatory officials having jurisdiction
over it, (iv) to any Person as required by law, regulation, or legal process, (v) to any Person in
connection with any legal proceeding to which such Lender is a party, (vi) to such Lender’s direct
or indirect contractual counterparties in swap agreements or to legal counsel, accountants and
other professional advisors to such counterparties, in each case which have been informed as to the
confidential nature of such information, and (vii) permitted by Section 12.4.

     9.12. Lenders Not Utilizing Plan Assets. Each Lender and Designated Lender represents
and warrants that none of the consideration used by such Lender or Designated Lender to make its
Loans constitutes for any purpose of ERISA or Section 4975 of the Code assets of any “plan” as
defined in Section 3(3) of ERISA or Section 4975 of the Code and the rights and interests of such
Lender or Designated Lender in and under the Loan Documents shall not constitute such “plan assets”
under ERISA.

     9.13. Nonreliance. Each Lender hereby represents that it is not relying on or looking
to any margin stock (as defined in Regulation U) as collateral in the extension or maintenance of
the credit provided for herein.

     9.14. Disclosure. The Borrower and each Lender, including each LC Issuer, hereby
acknowledge and agree that each Lender and/or its Affiliates from time to time may hold investments
in, make other loans to or have other relationships with the Borrower and its Affiliates.

     9.15. Performance of Obligations. The Borrower agrees that the Agent may, but shall
have no obligation to (i) at any time, pay or discharge taxes, liens, security interests or other
encumbrances levied or placed on or threatened against any Collateral and (ii) after the occurrence
and during the continuance of a Default make any other payment or perform any act required of the
Borrower under any Loan Document or take any other action which the Agent in

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its discretion deems necessary or desirable to protect or preserve the Collateral, including,
without limitation, any action to (x) effect any repairs or obtain any insurance called for by the
terms of any of the Loan Documents and to pay all or any part of the premiums therefor and the
costs thereof and (y) pay any rents payable by the Borrower which are more than 30 days past due,
or as to which the landlord has given notice of termination, under any lease. The Agent shall use
its best efforts to give the Borrower notice of any action taken under this Section 9.15 prior to
the taking of such action or promptly thereafter provided the failure to give such notice shall not
affect the Borrower’s obligations in respect thereof. The Borrower agrees to pay the Agent, upon
demand, the principal amount of all funds advanced by the Agent under this Section 9.15, together
with interest thereon at the rate from time to time applicable to Floating Rate Loans from the date
of such advance until the outstanding principal balance thereof is paid in full. If the Borrower
fails to make payment in respect of any such advance under this Section 9.15 within one (1)
Business Day after the date the Borrower receives written demand therefor from the Agent, the Agent
shall promptly notify each Lender and each Lender agrees that it shall thereupon make available to
the Agent, in Dollars in immediately available funds, the amount equal to such Lender’s Pro Rata
Share of such advance. If such funds are not made available to the Agent by such Lender within one
(1) Business Day after the Agent’s demand therefor, the Agent will be entitled to recover any such
amount from such Lender together with interest thereon at the Federal Funds Effective Rate for each
day during the period commencing on the date of such demand and ending on the date such amount is
received. The failure of any Lender to make available to the Agent its Pro Rata Share of any such
unreimbursed advance under this Section 9.15 shall neither relieve any other Lender of its
obligation hereunder to make available to the Agent such other Lender’s Pro Rata Share of such
advance on the date such payment is to be made nor increase the obligation of any other Lender to
make such payment to the Agent. All outstanding principal of, and interest on, advances made under
this Section 9.15 shall constitute Obligations secured by the Collateral until paid in full by the
Borrower.

     9.16. Partial Guaranty Release. The Borrower has requested that the Agent and the
Lenders release Digicomp, Inc., Tesoro Gas Resources Company, Inc. and Victory Finance Company (the
“Release Entities”) from the Guaranty, the Security Agreement, and all other Collateral
Documents to which such Release Entities are subject. The Borrower represents, warrants and
covenants to the Agent and the Lenders that each Release Entity has been dissolved prior to the
date hereof. The Agent and the Lenders, by their execution hereof, hereby release, as of the
Closing Date, the Release Entities from the Guaranty, the Security Agreement, and the other
Collateral Documents to which such Release Entities were or are subject. The Agent shall record
such instruments and documents, including, without limitation, UCC-3 termination statements, as are
reasonably necessary, in the Agent’s discretion, to further evidence such release.

     9.17. Subordination of Intercompany Indebtedness. The Borrower agrees that any and
all claims of the Borrower against any of its Subsidiaries that is a guarantor with respect to any
“Intercompany Indebtedness” (as hereinafter defined), any endorser, obligor or any other guarantor
of all or any part of the Secured Obligations, or against any of its properties shall be
subordinate and subject in right of payment to the prior payment, in full and in cash, of all
Secured Obligations; provided that, and not in contravention of the foregoing, so long as
no Default has occurred and is continuing the Borrower may make loans to and receive payments in
the ordinary course with respect to such Intercompany Indebtedness from each such guarantor to

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the extent permitted by the terms of this Agreement and the other Loan Documents.
Notwithstanding any right of the Borrower to ask, demand, sue for, take or receive any payment from
any guarantor, all rights, liens and security interests of the Borrower, whether now or hereafter
arising and howsoever existing, in any assets of any guarantor shall be and are subordinated to the
rights of the Holders of Secured Obligations in those assets. The Borrower shall not have any
right to possession of any such asset or to foreclose upon any such asset, whether by judicial
action or otherwise, unless and until all of the Secured Obligations (other than contingent
indemnity obligations) shall have been fully paid and satisfied (in cash) and all financing
arrangements pursuant to any Loan Document among the Borrower and the Holders of Secured
Obligations (or any affiliate thereof) have been terminated. If all or any part of the assets of
any guarantor, or the proceeds thereof, are subject to any distribution, division or application to
the creditors of such guarantor, whether partial or complete, voluntary or involuntary, and whether
by reason of liquidation, bankruptcy, arrangement, receivership, assignment for the benefit of
creditors or any other action or proceeding, or if the business of any such guarantor is dissolved
or if substantially all of the assets of any such guarantor are sold, then, and in any such event
(such events being herein referred to as an “Insolvency Event”), any payment or
distribution of any kind or character, either in cash, securities or other property, which shall be
payable or deliverable upon or with respect to any Indebtedness of any guarantor to the Borrower
(“Intercompany Indebtedness”) shall be paid or delivered directly to the Agent for
application on any of the Secured Obligations, due or to become due, until such Secured Obligations
(other than contingent indemnity obligations) shall have first been fully paid and satisfied (in
cash). Should any payment, distribution, security or instrument or proceeds thereof be received by
the Borrower upon or with respect to the Intercompany Indebtedness after an Insolvency Event prior
to the satisfaction of all of the Secured Obligations (other than contingent indemnity obligations)
and the termination of all financing arrangements pursuant to any Loan Document among the Borrower
and the Holders of Secured Obligations (and their Affiliates), the Borrower shall receive and hold
the same in trust, as trustee, for the benefit of the Holders of Secured Obligations and shall
forthwith deliver the same to the Agent, for the benefit of such Persons, in precisely the form
received (except for the endorsement or assignment of the Borrower where necessary), for
application to any of the Secured Obligations, due or not due, and, until so delivered, the same
shall be held in trust by the Borrower as the property of the Holder of Secured Obligations. If
the Borrower fails to make any such endorsement or assignment to the Agent, the Agent or any of its
officers or employees are irrevocably authorized to make the same. The Borrower agrees that until
the Secured Obligations (other than the contingent indemnity obligations) have been paid in full
(in cash) and satisfied and all financing arrangements pursuant to any Loan Document among the
Borrower and the Holders of the Secured Obligations (and their Affiliates) have been terminated,
the Borrower will not assign or transfer to any Person (other than the Agent) any claim the
Borrower has or may have against any guarantor.

     9.18. Certifications Regarding Indentures. The Borrower hereby certifies to the Agent
and the Lenders that, immediately prior to the effectiveness of the Revolving Loan Commitments, and
immediately prior to each Credit Extension hereunder, the Borrower’s incurrence of Indebtedness
under this Agreement and the other Loan Documents does not violate (i) Section 4.09 of the
Indenture, dated as of November 16, 2005, as amended or modified from time to time, to which the
Borrower and certain of its Subsidiaries are subject and pursuant to which the Borrower issued
certain 61/4% Senior Notes Due 2012, (ii) Section 4.09 of the

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Indenture, dated as of November 16, 2005, as amended or modified from time to time, to which
the Borrower and certain of its Subsidiaries are subject and pursuant to which the Borrower issued
certain 65/8% Senior Notes Due 2015, and (iii) if applicable, the relevant section of
the applicable Senior Note Document. The Borrower further certifies to the Agent and the Lenders
that the Revolving Loan Commitment component of this Agreement and the other Loan Documents
constitute a “Credit Facility” and a “Senior Credit Facility” under each of the foregoing
Indentures. The Borrower further certifies that the Revolving Loan Commitments, this Agreement,
and the other Loan Documents collectively constitute “Senior Debt” under each of the foregoing
Indentures.

     9.19. Co-Agents. Other than as set forth in Section 9.6, no Lender identified in this
Agreement as the syndication agent, the co-documentation agents, a collateral agent or any other
Co-Agent shall have any right, power, obligation, liability, responsibility, or duty under any Loan
Document other than those applicable to any Lender as such. Without limiting the foregoing, no
such Lender shall have or be deemed to have a fiduciary relationship with any Lender.

ARTICLE X

THE AGENT

     10.1. Appointment; Nature of Relationship. JPMorgan Chase Bank, National Association
is hereby appointed by each of the Lenders as its contractual representative (herein referred to as
the “Agent”) hereunder and under each other Loan Document, and each of the Lenders
irrevocably authorizes the Agent to act as the contractual representative of such Lender with the
rights and duties expressly set forth herein and in the other Loan Documents. The Agent agrees to
act as such contractual representative upon the express conditions contained in this Article X.
Notwithstanding the use of the defined term “Agent,” it is expressly understood and agreed that the
Agent shall not have any fiduciary responsibilities to any of the Holders of Secured Obligations by
reason of this Agreement or any other Loan Document and that the Agent is merely acting as the
contractual representative of the Lenders with only those duties as are expressly set forth in this
Agreement and the other Loan Documents. In its capacity as the Lenders’ contractual
representative, the Agent (i) does not hereby assume any fiduciary duties to any of the Holders of
Secured Obligations, (ii) is a “representative” of the Holders of Secured Obligations within the
meaning of the term “secured party” as defined in the New York Uniform Commercial Code and (iii) is
acting as an independent contractor, the rights and duties of which are limited to those expressly
set forth in this Agreement and the other Loan Documents. Each of the Lenders, for itself and on
behalf of its Affiliates as Holders of Secured Obligations, hereby agrees to assert no claim
against the Agent on any agency theory or any other theory of liability for breach of fiduciary
duty, all of which claims each Holder of Secured Obligations hereby waives.

     10.2. Powers. The Agent shall have and may exercise such powers under the Loan
Documents as are specifically delegated to the Agent by the terms of each thereof, together with
such powers as are reasonably incidental thereto. The Agent shall have no implied duties or
fiduciary duties to the Lenders, or any obligation to the Lenders to take any action thereunder
except any action specifically provided by the Loan Documents to be taken by the Agent.

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     10.3. General Immunity. Neither the Agent nor any of its directors, officers, agents
or employees shall be liable to the Borrower, or any Lender or Holder of Secured Obligations for
any action taken or omitted to be taken by it or them hereunder or under any other Loan Document or
in connection herewith or therewith except to the extent such action or inaction is determined in a
final, non-appealable judgment by a court of competent jurisdiction to have arisen from the gross
negligence or willful misconduct of such Person.

     10.4. No Responsibility for Loans, Recitals, etc. Neither the Agent nor any of its
directors, officers, agents or employees shall be responsible for or have any duty to ascertain,
inquire into, or verify (a) any statement, warranty or representation made in connection with any
Loan Document or any borrowing hereunder; (b) the performance or observance of any of the covenants
or agreements of any obligor under any Loan Document, including, without limitation, any agreement
by an obligor to furnish information directly to each Lender; (c) the satisfaction of any condition
specified in Article IV, except receipt of items required to be delivered solely to the Agent; (d)
the existence or possible existence of any Default or Unmatured Default; (e) the validity,
enforceability, effectiveness, sufficiency or genuineness of any Loan Document or any other
instrument or writing furnished in connection therewith; (f) the value, sufficiency, creation,
perfection or priority of any Lien in any Collateral; or (g) the financial condition of the
Borrower or any guarantor of any of the Obligations or of any of the Borrower’s or any such
guarantor’s respective Subsidiaries. The Agent shall have no duty to disclose to the Lenders
information that is not required to be furnished by the Borrower to the Agent at such time, but is
voluntarily furnished by the Borrower to the Agent (either in its capacity as Agent or in its
individual capacity).

     10.5. Action on Instructions of Lenders. The Agent shall in all cases be fully
protected in acting, or in refraining from acting, hereunder and under any other Loan Document in
accordance with written instructions signed by the Required Lenders (or all of the Lenders in the
event that and to the extent that this Agreement expressly requires such), and such instructions
and any action taken or failure to act pursuant thereto shall be binding on all of the Lenders.
The Lenders hereby acknowledge that the Agent shall be under no duty to take any discretionary
action permitted to be taken by it pursuant to the provisions of this Agreement or any other Loan
Document unless it shall be requested in writing to do so by the Required Lenders (or all of the
Lenders in the event that and to the extent that this Agreement expressly requires such). The
Agent shall be fully justified in failing or refusing to take any action hereunder and under any
other Loan Document unless it shall first be indemnified to its satisfaction by the Lenders pro
rata against any and all liability, cost and expense that it may incur by reason of taking or
continuing to take any such action.

     10.6. Employment of Agents and Counsel. The Agent may execute any of its duties as
Agent hereunder and under any other Loan Document by or through employees, agents, and
attorneys-in-fact and shall not be answerable to the Lenders, except as to money or securities
received by it or its authorized agents, for the default or misconduct of any such agents or
attorneys-in-fact selected by it with reasonable care. The Agent shall be entitled to advice of
counsel concerning the contractual arrangement between the Agent and the Lenders and all matters
pertaining to the Agent’s duties hereunder and under any other Loan Document.

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     10.7. Reliance on Documents; Counsel. The Agent shall be entitled to rely upon any
Note, notice, consent, certificate, affidavit, letter, telegram, statement, paper or document
believed by it to be genuine and correct and to have been signed or sent by the proper person or
persons, and, in respect to legal matters, upon the opinion of counsel selected by the Agent, which
counsel may be employees of the Agent.

     10.8. Agent’s Reimbursement and Indemnification. The Lenders agree to reimburse and
indemnify the Agent ratably in proportion to the Lenders’ Pro Rata Shares of the Aggregate
Revolving Loan Commitment (or, if the Aggregate Revolving Loan Commitment has been terminated, of
the Aggregate Outstanding Revolving Loan Credit Exposure) (i) for any amounts not reimbursed by the
Borrower for which the Agent is entitled to reimbursement by the Borrower under the Loan Documents,
(ii) for any other expenses incurred by the Agent on behalf of the Lenders, in connection with the
preparation, execution, delivery, administration and enforcement of the Loan Documents (including,
without limitation, for any expenses incurred by the Agent in connection with any dispute between
the Agent and any Lender or between two or more of the Lenders) and (iii) for any liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind and nature whatsoever which may be imposed on, incurred by or asserted
against the Agent in any way relating to or arising out of the Loan Documents or any other document
delivered in connection therewith or the transactions contemplated thereby (including, without
limitation, for any such amounts incurred by or asserted against the Agent in connection with any
dispute between the Agent and any Lender or between two or more of the Lenders), or the enforcement
of any of the terms of the Loan Documents or of any such other documents, provided that (i)
no Lender shall be liable for any of the foregoing to the extent any of the foregoing is found in a
final, non-appealable judgment by a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of the Agent and (ii) any indemnification required pursuant to
Section 3.5(vii) shall, notwithstanding the provisions of this Section 10.8, be paid by the
relevant Lender in accordance with the provisions thereof. The obligations of the Lenders under
this Section 10.8 shall survive payment of the Secured Obligations and termination of this
Agreement.

     10.9. Notice of Default. The Agent shall not be deemed to have knowledge or notice of
the occurrence of any Default or Unmatured Default hereunder unless the Agent has received written
notice from a Lender or the Borrower referring to this Agreement describing such Default or
Unmatured Default and stating that such notice is a “notice of default”. In the event that the
Agent receives such a notice, the Agent shall give prompt notice thereof to the Lenders.

     10.10. Rights as a Lender. In the event the Agent is a Lender, the Agent shall have
the same rights and powers hereunder and under any other Loan Document with respect to its
Revolving Loan Commitment and its Credit Extensions as any Lender and may exercise the same as
though it were not the Agent, and the term “Lender” or “Lenders” shall, at any time when the Agent
is a Lender, unless the context otherwise indicates, include the Agent in its individual capacity.
The Agent and its Affiliates may accept deposits from, lend money to, and generally engage in any
kind of trust, debt, equity or other transaction, in addition to those contemplated by this
Agreement or any other Loan Document, with the Borrower or any of its Subsidiaries in which the
Borrower or such Subsidiary is not restricted hereby from engaging with any other Person. The
Agent, in its individual capacity, is not obligated to remain a Lender.

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     10.11. Lender Credit Decision. Each Lender acknowledges that it has, independently
and without reliance upon the Agent, the Arrangers or any other Lender and based on the financial
statements prepared by the Borrower and such other documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Agreement and the other
Loan Documents. Each Lender also acknowledges that it will, independently and without reliance
upon the Agent, the Arrangers or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in taking or not
taking action under this Agreement and the other Loan Documents.

     10.12. Successor Agent. The Agent may resign at any time by giving written notice
thereof to the Lenders and the Borrower, such resignation to be effective upon the appointment of a
successor Agent or, if no successor Agent has been appointed, forty-five days after the retiring
Agent gives notice of its intention to resign. The Agent may not be removed at any time without
its prior written consent. Upon any resignation, the Required Lenders shall have the right to
appoint, on behalf of the Borrower and the Lenders, a successor Agent. If no successor Agent shall
have been so appointed by the Required Lenders within thirty days after the resigning Agent’s
giving notice of its intention to resign, then the resigning Agent may appoint, on behalf of the
Borrower and the Lenders, a successor Agent. Notwithstanding the previous sentence, the Agent may
at any time without the consent of the Borrower or any Lender, appoint any of its Affiliates which
is a commercial bank as a successor Agent hereunder. If the Agent has resigned and no successor
Agent has been appointed, the Lenders may perform all the duties of the Agent hereunder and the
Borrower shall make all payments in respect of the Obligations to the applicable Lender and for all
other purposes shall deal directly with the Lenders. No successor Agent shall be deemed to be
appointed hereunder until such successor Agent has accepted the appointment. Any such successor
Agent shall be a commercial bank having capital and retained earnings of at least $100,000,000.
Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor
Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and
duties of the resigning Agent. Upon the effectiveness of the resignation of the Agent, the
resigning Agent shall be discharged from its duties and obligations hereunder and under the Loan
Documents. After the effectiveness of the resignation of the Agent, the provisions of this Article
X shall continue in effect for the benefit of such Agent in respect of any actions taken or omitted
to be taken by it while it was acting as the Agent hereunder and under the other Loan Documents.
In the event that there is a successor to the Agent by merger, or the Agent assigns its duties and
obligations to an Affiliate pursuant to this Section 10.12, then the term “Prime Rate” as used in
this Agreement shall mean the prime rate, base rate or other analogous rate of the new Agent.

     10.13. Agent and Arrangers Fees. The Borrower agrees to pay to the Agent and the
Arrangers, for their respective accounts, the fees agreed to by the Borrower, the Agent and the
Arrangers pursuant to (i) the fee letter dated May 9, 2007 by and among the Borrower, the Agent and
the Arrangers, as amended or modified from time to time and (ii) the fee letter dated May 9, 2007
by and between the Borrower and the Agent, as amended or modified from time to time.

     10.14. Delegation to Affiliates. The Borrower and the Lenders agree that the Agent
may delegate any of its duties under this Agreement to any of its Affiliates. Any such Affiliate
(and such Affiliate’s directors, officers, agents and employees) which performs duties in
connection

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with this Agreement shall be entitled to the same benefits of the indemnification, waiver and
other protective provisions to which the Agent is entitled under Articles IX and X.

     10.15. Collateral Documents. (a) Each Lender authorizes the Agent to enter into each
of the Collateral Documents to which it is a party and to take all action contemplated by such
documents. Each Lender agrees that no Holder of Secured Obligations (other than the Agent) shall
have the right individually to seek to realize upon the security granted by any Collateral
Document, it being understood and agreed that such rights and remedies may be exercised solely by
the Agent for the benefit of the Holders of Secured Obligations upon the terms of the Collateral
Documents.

          (b) In the event that any Collateral is hereafter pledged by any Person as collateral security
for the Secured Obligations, the Agent is hereby authorized to execute and deliver on behalf of the
Holders of Secured Obligations any Loan Documents necessary or appropriate to grant and perfect a
Lien on such Collateral in favor of the Agent on behalf of the Holders of Secured Obligations.

          (c) The Lenders hereby authorize the Agent, at its option and in its discretion, to release
any Lien granted to or held by the Agent upon any Collateral (i) upon termination of the Aggregate
Revolving Loan Commitment and payment and satisfaction of all of the Obligations (other than
contingent indemnity obligations and Rate Management Obligations) at any time arising under or in
respect of this Agreement or the Loan Documents or the transactions contemplated hereby or thereby;
(ii) as permitted by, but only in accordance with, the terms of the applicable Loan Document; or
(iii) if approved, authorized or ratified in writing by the Required Lenders, unless such release
is required to be approved by all of the Lenders hereunder. Upon request by the Agent at any time,
the Lenders will confirm in writing the Agent’s authority to release particular types or items of
Collateral pursuant to this Section 10.15.

          (d) Upon any sale or transfer of assets constituting Collateral which is permitted pursuant to
the terms of any Loan Document, or consented to in writing by the Required Lenders or all of the
Lenders, as applicable, and upon at least five Business Days’ prior written request by the Borrower
to the Agent, the Agent shall (and is hereby irrevocably authorized by the Lenders to) execute such
documents as may be necessary to evidence the release of the Liens granted to the Agent for the
benefit of the Holders of Secured Obligations herein or pursuant hereto upon the Collateral that
was sold or transferred; provided, however, that (i) the Agent shall not be
required to execute any such document on terms which, in the Agent’s opinion, would expose the
Agent to liability or create any obligation or entail any consequence other than the release of
such Liens without recourse or warranty, and (ii) such release shall not in any manner discharge,
affect or impair the Secured Obligations or any Liens upon (or obligations of the Borrower or any
Subsidiary Guarantor in respect of) all interests retained by the Borrower or any Subsidiary
Guarantor, including, without limitation, the proceeds of the sale, all of which shall continue to
constitute part of the Collateral.

     10.16. Exercise of Certain Remedies. Except with respect to the exercise of setoff
rights of any Lender in accordance with Section 11.1, the proceeds of which are applied in
accordance with this Agreement, each Lender agrees that it will not take any action, nor institute
any actions or proceedings, against the Borrower or with respect to any Loan Document, without the
prior

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written consent of the Required Lenders or, as may be provided in this Agreement or the other
Loan Documents, with the consent of the Agent.

ARTICLE XI

SETOFF; RATABLE PAYMENTS

     11.1. Setoff. In addition to, and without limitation of, any rights of the Lenders
under applicable law, if the Borrower becomes insolvent, however evidenced, or any Default occurs,
any and all deposits (including all account balances, whether provisional or final and whether or
not collected or available) and any other Indebtedness at any time held or owing by any Lender or
any Affiliate of any Lender to or for the credit or account of the Borrower may be offset and
applied toward the payment of the Secured Obligations owing to such Lender, whether or not the
Secured Obligations, or any part thereof, shall then be due and Borrower shall be promptly notified
in writing thereof by such Lender and Affiliate.

     11.2. Ratable Payments. If any Lender, whether by setoff or otherwise, has payment
made to it upon its Outstanding Credit Exposure (other than payments received pursuant to Section
3.1, 3.2, 3.4 or 3.5) in a greater proportion than that received by any other Lender, such Lender
agrees, promptly upon demand, to purchase a participation in the Aggregate Outstanding Credit
Exposure held by the other Lenders so that after such purchase each Lender will hold its Pro Rata
Share of the Aggregate Outstanding Credit Exposure. If any Lender, whether in connection with
setoff or amounts which might be subject to setoff or otherwise, receives collateral or other
protection for its Obligations or such amounts which may be subject to setoff, such Lender agrees,
promptly upon demand, to take such action necessary such that all Lenders share in the benefits of
such collateral ratably in proportion to their respective Pro Rata Shares of the Aggregate
Outstanding Credit Exposure. In case any such payment is disturbed by legal process, or otherwise,
appropriate further adjustments shall be made.

     11.3. Application of Payments. Principal and interest payments shall be apportioned
ratably among the Lenders (according to the unpaid principal balance of the Loans to which such
payments relate held by each Lender) and payments of the fees shall, as applicable, be apportioned
ratably among the Lenders, except for fees payable solely to the Agent or any LC Issuer and except
as provided in the fee letter referenced in Section 10.13. Subject to the provisions of Section
2.2 governing the application of mandatory prepayments, all payments shall be remitted to the Agent
and all such payments not relating to principal or interest of specific Loans, or not constituting
payment of specific fees, and all proceeds of any Collateral received by the Agent following
acceleration of the maturity of the Obligations pursuant to Section 8.1, shall be applied,
ratably, subject to the provisions of this Agreement, first, to pay any fees, indemnities,
or expense reimbursements including amounts then due to the Agent from the Borrower,
second, to pay any fees or expense reimbursements then due to the Lenders from the
Borrower, third, to pay interest due in respect of the Revolving Loans, including
Non-Ratable Loans and Collateral Protection Advances, fourth, to pay or prepay ratably the
principal amount of the Collateral Protection Advances, fifth, to pay or prepay ratably the
principal amount of the Non-Ratable Loans and the Revolving Loans, unpaid Reimbursement Obligations
in respect of Facility LCs, and an amount to the Agent equal to one hundred ten percent (110%) of
the aggregate undrawn face amount of all outstanding Facility LCs to be held as cash collateral for

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such Obligations, sixth, to pay any amounts owing with respect to Bank Products, and
seventh, to the payment of any other Secured Obligation due to the Agent or any Lender by
the Borrower.

     Notwithstanding anything to the contrary contained in this Agreement, unless so directed by
the Borrower, or unless a Default is in existence, neither the Agent nor any Lender shall apply any
payment which it receives to any Eurodollar Loan, except (a) on the expiration date of the Interest
Period applicable to any such Eurodollar Loan, or (b) in the event, and only to the extent, that
there are no outstanding Floating Rate Loans and, in any event, the Borrower shall pay the breakage
losses with respect to Eurodollar Loans in accordance with Section 3.4. The Agent and the Required
Lenders shall have the continuing and exclusive right to apply and reverse and reapply any and all
such proceeds and payments to any portion of the Secured Obligations. Unless otherwise required by
the terms of this Agreement, all principal payments in respect of Loans (other than Non-Ratable
Loans and Collateral Protection Advances) shall be applied first to repay outstanding Floating Rate
Loans, and then to repay outstanding Eurodollar Loans with those Eurodollar Loans which have
earlier expiring Interest Periods being repaid prior to those which have later expiring Interest
Periods.

ARTICLE XII

BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

     12.1. Successors and Assigns; Designated Lenders.

     12.1.1 Successors and Assigns. The terms and provisions of the Loan Documents
shall be binding upon and inure to the benefit of the Borrower, the Agent and the Lenders
and their respective successors and assigns permitted hereby, except that (i) the Borrower
shall not have the right to assign its rights or obligations under the Loan Documents
without the prior written consent of each Lender, (ii) any assignment by any Lender must be
made in compliance with Section 12.3, and (iii) any transfer by Participants must be made in
compliance with Section 12.2. Any attempted assignment or transfer by any party not made in
compliance with this Section 12.1 shall be null and void, unless such attempted assignment
or transfer is treated as a participation in accordance with Section 12.3.2. The parties to
this Agreement acknowledge that clause (ii) of this Section 12.1 relates only to absolute
assignments and this Section 12.1 does not prohibit assignments creating security interests,
including, without limitation, (x) any pledge or assignment by any Lender of all or any
portion of its rights under this Agreement and any Note to a Federal Reserve Bank, (y) in
the case of a Lender which is a Fund, any pledge or assignment of all or any portion of its
rights under this Agreement and any Note to its trustee in support of its obligations to its
trustee or (z) any pledge or assignment by any Lender of all or any portion of its rights
under this Agreement and any Note to direct or indirect contractual counterparties in swap
agreements relating to the Loans; provided, however, that no such pledge or
assignment creating a security interest shall release the transferor Lender from its
obligations hereunder unless and until the parties thereto have complied with the provisions
of Section 12.3. The Agent may treat the Person which made any Loan or which holds any Note
as the owner thereof for all purposes hereof unless and until such Person complies with
Section 12.3; provided,

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however, that the Agent may in its discretion (but shall not be required to)
follow instructions from the Person which made any Loan or which holds any Note to direct
payments relating to such Loan or Note to another Person. Any assignee of the rights to any
Loan or any Note agrees by acceptance of such assignment to be bound by all the terms and
provisions of the Loan Documents. Any request, authority or consent of any Person, who at
the time of making such request or giving such authority or consent is the owner of the
rights to any Loan (whether or not a Note has been issued in evidence thereof), shall be
conclusive and binding on any subsequent holder or assignee of the rights to such Loan.

     12.1.2 Designated Lenders.

	 	(i)	 	Subject to the terms and conditions set forth in this Section 12.1.2, any
Lender may from time to time elect to designate an Eligible Designee to provide all or
any part of the Loans to be made by such Lender pursuant to this Agreement;
provided that the designation of an Eligible Designee by any Lender for
purposes of this Section 12.1.2 shall be subject to the approval of the Agent (which
consent shall not be unreasonably withheld or delayed). Upon the execution by the
parties to each such designation of an agreement in the form of Exhibit F hereto (a
“Designation Agreement”) and the acceptance thereof by the Agent, the Eligible
Designee shall become a Designated Lender for purposes of this Agreement. The
Designating Lender shall thereafter have the right to permit the Designated Lender to
provide all or a portion of the Loans to be made by the Designating Lender pursuant to
the terms of this Agreement and the making of the Loans or portion thereof shall
satisfy the obligations of the Designating Lender to the same extent, and as if, such
Loan was made by the Designating Lender. As to any Loan made by it, each Designated
Lender shall have all the rights a Lender making such Loan would have under this
Agreement and otherwise; provided, (x) that all voting rights under this
Agreement shall be exercised solely by the Designating Lender, (y) each Designating
Lender shall remain solely responsible to the other parties hereto for its obligations
under this Agreement, including the obligations of a Lender in respect of Loans made by
its Designated Lender and (z) no Designated Lender shall be entitled to reimbursement
under Article III hereof for any amount which would exceed the amount that would have
been payable by the Borrower to the Lender from which the Designated Lender obtained
any interests hereunder. No additional Notes shall be required with respect to Loans
provided by a Designated Lender; provided, however, to the extent any
Designated Lender shall advance funds, the Designating Lender shall be deemed to hold
the Notes in its possession as an agent for such Designated Lender to the extent of the
Loan funded by such Designated Lender. Such Designating Lender shall act as
administrative agent for its Designated Lender and give and receive notices and
communications hereunder. Any payments for the account of any Designated Lender shall
be paid to its Designating Lender as administrative agent for such Designated Lender
and neither the Borrower nor the Agent shall be responsible for any Designating
Lender’s application of such payments. In addition, any Designated Lender may (1) with
notice to, but without the consent of the Borrower or the Agent, assign all or portions
of its interests in any Loans to its

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	 	 	 	Designating Lender or to any financial institution consented to by the Agent
providing liquidity and/or credit facilities to or for the account of such
Designated Lender and (2) subject to advising any such Person that such information
is to be treated as confidential in accordance with Section 9.11, disclose on a
confidential basis any non-public information relating to its Loans to any rating
agency, commercial paper dealer or provider of any guarantee, surety or credit or
liquidity enhancement to such Designated Lender.
	 
	 	(ii)	 	Each party to this Agreement hereby agrees that it shall not institute against,
or join any other Person in instituting against, any Designated Lender any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding or other proceedings
under any federal or state bankruptcy or similar law for one year and a day after the
payment in full of all outstanding senior indebtedness of any Designated Lender;
provided that the Designating Lender for each Designated Lender hereby agrees
to indemnify, save and hold harmless each other party hereto for any loss, cost, damage
and expense arising out of its inability to institute any such proceeding against such
Designated Lender. This Section 12.1.2 shall survive the termination of this
Agreement.

     12.2. Participations.

     12.2.1 Permitted Participants; Effect. Any Lender may at any time sell to one
or more banks or other entities (“Participants”) participating interests in any
Outstanding Credit Exposure of such Lender, any Note held by such Lender, any Revolving Loan
Commitment of such Lender or any other interest of such Lender under the Loan Documents. In
the event of any such sale by a Lender of participating interests to a Participant, such
Lender’s obligations under the Loan Documents shall remain unchanged, such Lender shall
remain solely responsible to the other parties hereto for the performance of such
obligations, such Lender shall remain the owner of its Outstanding Credit Exposure and the
holder of any Note issued to it in evidence thereof for all purposes under the Loan
Documents, all amounts payable by the Borrower under this Agreement shall be determined as
if such Lender had not sold such participating interests, and the Borrower and the Agent
shall continue to deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under the Loan Documents.

     12.2.2 Voting Rights. Each Lender shall retain the sole right to approve,
without the consent of any Participant, any amendment, modification or waiver of any
provision of the Loan Documents other than any amendment, modification or waiver with
respect to any Credit Extension or Revolving Loan Commitment in which such Participant has
an interest which would require consent of all of the Lenders pursuant to the terms of
Section 8.2.

     12.2.3 Benefit of Certain Provisions. The Borrower agrees that each
Participant shall be deemed to have the right of setoff provided in Section 11.1 in respect
of its participating interest in amounts owing under the Loan Documents to the same extent
as if the amount of its participating interest were owing directly to it as a Lender under
the

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Loan Documents, provided that each Lender shall retain the right of setoff
provided in Section 11.1 with respect to the amount of participating interests sold to each
Participant. The Lenders agree to share with each Participant, and each Participant, by
exercising the right of setoff provided in Section 11.1, agrees to share with each Lender,
any amount received pursuant to the exercise of its right of setoff, such amounts to be
shared in accordance with Section 11.2 as if each Participant were a Lender. The Borrower
further agrees that each Participant shall be entitled to the benefits of Sections 3.1, 3.2,
3.4 and 3.5 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to Section 12.3, provided that (i) a Participant shall not be
entitled to receive any greater payment under Section 3.1, 3.2 or 3.5 than the Lender who
sold the participating interest to such Participant would have received had it retained such
interest for its own account, unless the sale of such interest to such Participant is made
with the prior written consent of the Borrower, and (ii) any Participant not incorporated
under the laws of the United States of America or any State thereof agrees to comply with
the provisions of Section 3.5 to the same extent as if it were a Lender.

     12.3. Assignments.

     12.3.1 Permitted Assignments. Any Lender may at any time assign to one or more
banks or other entities (“Purchasers”) all or any part of its rights and obligations
under the Loan Documents. Such assignment shall be evidenced by an agreement substantially
in the form of Exhibit C or in such other form as may be agreed to by the parties thereto
(each such agreement, an “Assignment Agreement”). Each such assignment with respect
to a Purchaser which is not a Lender or an Affiliate of a Lender or an Approved Fund shall,
unless otherwise consented to in writing by the Borrower and the Agent, either be in an
amount equal to the entire applicable Outstanding Credit Exposure of the assigning Lender or
(unless each of the Borrower and the Agent otherwise consents) be in an aggregate amount
not less than $10,000,000 with respect to Revolving Loans. The amount of the assignment
shall be based on the Outstanding Credit Exposure subject to the assignment, determined as
of the date of such assignment or as of the “Trade Date,” if the “Trade Date” is specified
in the Assignment Agreement.

     12.3.2 Consents. The consent of the Borrower shall be required prior to an
assignment becoming effective unless the Purchaser is a Lender, an Affiliate of a Lender or
an Approved Fund, provided that the consent of the Borrower shall not be required if
(i) a Default has occurred and is continuing or (ii) such assignment is in connection with
the physical settlement of any Lender’s obligations to direct or indirect contractual
counterparties in swap agreements relating to the Loans; provided, that the
assignment without the Borrower’s consent pursuant to clause (ii) shall not increase the
Borrower’s liability under Section 3.5. The consent of the Agent and, for so long as
JPMorgan is an LC Issuer hereunder, JPMorgan in its capacity as a LC Issuer shall be
required prior to an assignment becoming effective unless the Purchaser is a Lender, an
Affiliate of a Lender or an Approved Fund. Any consent required under this Section 12.3.2
shall not be unreasonably withheld or delayed.

     12.3.3 Effect; Effective Date. Upon (i) delivery to the Agent of an Assignment
Agreement, together with any consents required by Sections 12.3.1 and 12.3.2, and (ii)

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payment of a $3,500 fee to the Agent for processing such assignment (unless such fee is
waived by the Agent or unless such assignment is made to such assigning Lender’s Affiliate
or an Approved Fund), such assignment shall become effective on the effective date specified
in such assignment. The Assignment Agreement shall contain a representation and warranty by
the Purchaser to the effect that the assignment evidenced thereby will not result in a
non-exempt “prohibited transaction” under Section 406 of ERISA. On and after the effective
date of such assignment, such Purchaser shall for all purposes be a Lender party to this
Agreement and any other Loan Document executed by or on behalf of the Lenders and shall have
all the rights, benefits and obligations of a Lender under the Loan Documents, to the same
extent as if it were an original party thereto, and the transferor Lender shall be released
with respect to the Outstanding Credit Exposure assigned to such Purchaser without any
further consent or action by the Borrower, the Lenders or the Agent. In the case of an
assignment covering all of the assigning Lender’s rights, benefits and obligations under
this Agreement, such Lender shall cease to be a Lender hereunder but shall continue to be
entitled to the benefits of, and subject to, those provisions of this Agreement and the
other Loan Documents which survive payment of the Obligations and termination of the Loan
Documents. Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this Section 12.3 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 12.2. Upon the consummation of any assignment to a Purchaser
pursuant to this Section 12.3.3, the transferor Lender, the Agent and the Borrower shall, if
the transferor Lender or the Purchaser desires that its Loans be evidenced by Notes, make
appropriate arrangements so that, upon cancellation and surrender to the Borrower of the
Notes (if any) held by the transferor Lender, new Notes or, as appropriate, replacement
Notes are issued to such transferor Lender, if applicable, and new Notes or, as appropriate,
replacement Notes, are issued to such Purchaser, in each case in principal amounts
reflecting their Revolving Loan Commitments (or, if the Termination Date has occurred, their
respective Outstanding Credit Exposure), as adjusted pursuant to such assignment.

     12.3.4 Register. The Agent, acting solely for this purpose as an agent of the
Borrower (and the Borrower hereby designates the Agent to act in such capacity), shall
maintain at one of its offices a copy of each Assignment and Assumption delivered to it and
a register (the “Register”) for the recordation of the names and addresses of the
Lenders, and the Revolving Loan Commitments of, and principal amounts of and interest on the
Loans owing to, each Lender pursuant to the terms hereof from time to time and whether such
Lender is an original Lender or assignee of another Lender pursuant to an assignment under
this Section 13.3. The entries in the Register shall be conclusive, and the Borrower, the
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 and any Lender, at any reasonable time and from time to time upon reasonable
prior notice.

     12.4. Dissemination of Information. The Borrower authorizes each Lender to disclose
to any Participant or Purchaser or any other Person acquiring an interest in the Loan Documents by
operation of law (each a “Transferee”) and any prospective Transferee any and all

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information in such Lender’s possession concerning the creditworthiness of the Borrower and
its Subsidiaries; provided that each Transferee and prospective Transferee agrees to be
bound by Section 9.11 of this Agreement.

     12.5. Tax Certifications. If any interest in any Loan Document is transferred to any
Transferee which is not incorporated under the laws of the United States or any State thereof, the
transferor Lender shall cause such Transferee, concurrently with the effectiveness of such
transfer, to comply with the provisions of Section 3.5(iv).

ARTICLE XIII

NOTICES

     13.1. Notices. Except as otherwise permitted by Section 2.13 with respect to
borrowing notices, all notices, requests and other communications to any party hereunder shall be
in writing (including electronic transmission, facsimile transmission or similar writing) and shall
be given to such party: (x) in the case of the Borrower, the Lenders, the LC Issuers, or the Agent,
at its address or facsimile number set forth on the signature pages hereof or, (y) in the case of
any party, at such other address or facsimile number as such party may hereafter specify for the
purpose by notice to the Agent and the Borrower in accordance with the provisions of this Section
13.1. Each such notice, request or other communication shall be effective (i) if given by
facsimile transmission, when transmitted to the facsimile number specified in this Section and
confirmation of receipt is received, (ii) if given by mail, 72 hours after such communication is
deposited in the mails with first class postage prepaid, addressed as aforesaid, or (iii) if given
by any other means, when delivered (or, in the case of electronic transmission, received) at the
address specified in this Section; provided that notices to the Agent under Article II
shall not be effective until received.

     13.2. Change of Address. The Borrower, the Agent, any LC Issuer, and any Lender may
each change the address for service of notice upon it by a notice in writing to the other parties
hereto.

ARTICLE XIV

COUNTERPARTS

     This Agreement may be executed in any number of counterparts, all of which taken together
shall constitute one agreement, and any of the parties hereto may execute this Agreement by signing
any such counterpart. This Agreement shall be effective when it has been executed by the Borrower,
the Agent, the initial LC Issuer, and the Lenders and each party has notified the Agent by
facsimile transmission or telephone that it has taken such action.

ARTICLE XV

CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

     15.1 CHOICE OF LAW. THE LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A
CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE

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GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (INCLUDING SECTION 5-1401 OF
THE GENERAL OBLIGATION LAW BUT OTHERWISE WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS) OF THE STATE
OF NEW YORK, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS. IF ANY COURT,
TRIBUNAL OR OTHER ENTITY WITH JURISDICTION OVER THE LOAN DOCUMENTS AND THE TRANSACTIONS EVIDENCED
THEREBY REJECTS THE FOREGOING CHOICE OF NEW YORK LAW, THEN THE LOAN DOCUMENTS (OTHER THAN THOSE
CONTAINING A CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS (INCLUDING 735 ILCS SECTION 105/5-1 ET SEQ. BUT OTHERWISE WITHOUT
REGARD TO CONFLICT OF LAW PROVISIONS) OF THE STATE OF ILLINOIS, BUT GIVING EFFECT TO FEDERAL LAWS
APPLICABLE TO NATIONAL BANKS.

     15.2 CONSENT TO JURISDICTION. THE BORROWER, THE AGENT AND EACH LENDER AND
EACH LC ISSUER EACH HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED
STATES FEDERAL COURT SITTING IN OR WITH DIRECT JURISDICTION OVER THE SOUTHERN DISTRICT OF NEW YORK
OR ANY NEW YORK STATE COURT SITTING IN OR WITH DIRECT JURISDICTION OVER THE BOROUGH OF MANHATTAN IN
ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENTS AND THE BORROWER, THE
AGENT, EACH LC ISSUER AND EACH LENDER EACH HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF
SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY
OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT
THE RIGHT OF THE BORROWER, THE AGENT, ANY LC ISSUER, ANY LENDER OR ANY HOLDER OF SECURED
OBLIGATIONS TO BRING PROCEEDINGS AGAINST THE BORROWER, THE AGENT, OR ANY LC ISSUER OR ANY LENDER IN
THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY THE BORROWER AGAINST THE AGENT,
ANY LC ISSUER, ANY LENDER OR ANY HOLDER OF SECURED OBLIGATIONS OR ANY AFFILIATE OF THE BORROWER,
THE AGENT, ANY LC ISSUER, ANY LENDER OR ANY HOLDER OF SECURED OBLIGATIONS AS THE CASE MAY BE
INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED
WITH ANY LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A UNITED STATES FEDERAL COURT SITTING IN OR WITH
DIRECT JURISDICTION OVER THE SOUTHERN DISTRICT OF NEW YORK OR ANY NEW YORK STATE COURT SITTING IN
OR WITH DIRECT JURISDICTION OVER THE BOROUGH OF MANHATTAN.

     15.3 WAIVER OF JURY TRIAL. THE BORROWER, THE AGENT, EACH LC ISSUER, EACH
LENDER, AND EACH OTHER HOLDER OF SECURED OBLIGATIONS HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL
PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER

93

 

(WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR
CONNECTED WITH ANY LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER.

ARTICLE XVI

PRIOR CREDIT AGREEMENT

     The Borrower, certain of the Lenders, and the Agent are parties to the Prior Credit Agreement.
The Borrower, the Lenders, and the Agent agree that upon (i) the execution and delivery of this
Agreement by each of the parties hereto and (ii) satisfaction (or waiver by the aforementioned
parties) of the conditions precedent set forth in Section 4.1, the terms and conditions of the
Prior Credit Agreement shall be and hereby are amended, superseded, and restated in their entirety
by the terms and provisions of this Agreement. All amounts outstanding or otherwise due and
payable under the Prior Credit Agreement prior to the Closing Date shall, on and after the Closing
Date, be outstanding and due and payable under this Agreement. Notwithstanding the foregoing, the
Borrower affirms its rights, duties and obligations under the Security Agreement, including,
without limitation, the security interest granted thereunder, and the other Loan Documents
delivered in connection herewith, and agrees and acknowledges that this Agreement constitutes the
“Credit Agreement” referenced therein. Without limiting the foregoing, upon the effectiveness
hereof, the Agent shall make such reallocations, sales, assignments or other relevant actions in
respect of each Lender’s credit and loan exposure under the Prior Credit Agreement as are necessary
in order that each such Lender’s Outstanding Credit Exposure hereunder reflects such Lender’s Pro
Rata Share of the Aggregate Outstanding Credit Exposure on the Closing Date.

ARTICLE XVII

USA PATRIOT ACT NOTIFICATION

     The following notification is provided to the Borrower pursuant to Section 326 of the Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism (USA PATRIOT Act) of 2001, 31 U.S.C. Section 5318:

     IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the government of
the United States of America fight the funding of terrorism and money laundering activities,
Federal law requires all financial institutions to obtain, verify, and record information that
identifies each Person that opens an account, including any deposit account, treasury management
account, loan, other extension of credit, or other financial services product. Accordingly, when
the Borrower opens an account, the Agent and the Lenders will ask for the Borrower’s name, tax
identification number, business address, and other information that will allow the Agent and the
Lenders to identify the Borrower. The Agent and the Lenders may also ask to see the Borrower’s
legal organizational documents or other identifying documents.

The remainder of this page is intentionally blank

94

 

     IN WITNESS WHEREOF, the Borrower, the Lenders, the initial LC Issuer and the Agent have
executed this Agreement as of the date first written above.

	 	 	 	 	 	 	 
	 	 	TESORO CORPORATION,

as the Borrower	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Otto C. Schwethelm
 

Otto C. Schwethelm
	 	  
	 

	 	Title:
	 	Vice President, Finance and Treasurer	 	 

Address:

300 Concord Plaza Drive

San Antonio, Texas 78216-6999

Attention: Otto C. Schwethelm

Telephone: (210) 283-2343

Facsimile: (210) 745-4445

With copy to:

Attention: Charles S. Parrish

Telephone: (210) 283-2280

Facsimile: (210) 283-2155

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	 	 	JPMORGAN CHASE BANK,

NATIONAL ASSOCIATION,

individually, as initial LC Issuer, and as Administrative

Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Helen A. Carr
 

Helen A. Carr
	 	  
	 

	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	10 South Dearborn

Floor 7, Mail Code IL1-0010

Chicago, IL 60603-2003

	 	 
	 

	 	Attention:
	 	Cely Navarro, Shared Operations-Loans	 	 
	 

	 	Facsimile:
	 	312.385.7107	 	 

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	 	 	LEHMAN COMMERCIAL PAPER INC.,

as Syndication Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

	 	/s/ Claire O’Connor
 

	 	  
	 

	 	Name:
	 	Claire O’Connor	 	 
	 

	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	 	 	 
	 

	 	Facsimile:
	 	 	 	 

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	 	 	BANK OF AMERICA, N.A.,

as a Co-Documentation Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Hance Van Beber
 

Hance Van Beber
	 	  
	 

	 	Title:
	 	SVP; Sr. Client Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	901 Main Street, 22nd Floor

Dallas, Tx 75202	 	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	 	 	 
	 

	 	Facsimile:
	 	214-209-4766	 	 

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	 	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,

as a Co-Documentation Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

	 	/s/ John McGhee
 
	 	  
	 

	 	Name:
	 	John McGhee	 	 
	 

	 	Title:
	 	Vice President & Manager	 	 

Address: 1100 Louisiana, Suite 2800

Houston, Texas 77002

Attention: John McIntyre

Facsimile: 713-658-0116

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	 	 	FORTIS CAPITAL CORP.,

as a Co-Documentation Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ David Montgomery
 

David Montgomery
	 	  
	 

	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:

Title:
	 	/s/ Darrell Holley
 

Darrell Holley 

Managing Director
	 	  
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	15455 N. Dallas Pkwy, Suite 1400

Addison, TX, 75001
	 	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	Casey Lowary	 	 
	 

	 	Facsimile:
	 	1-214-754-5982	 	 

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	 	 	THE ROYAL BANK OF SCOTLAND plc,

as a Co-Documentation Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ John Preece
 

John Preece
	 	  
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	600 Travis Street, STE6500

Houston, Texas 77002
	 	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	John Preece	 	 
	 

	 	Facsimile:
	 	713-221-2430	 	 

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	 	 	BANK OF SCOTLAND, 

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Karen Weich
 

KAREN WEICH
	 	  
	 

	 	Title:
	 	VICE PRESIDENT	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	565 Fifth Avenue
New York, NY 10017
	 	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	Victoria McFadden	 	 
	 

	 	Facsimile:
	 	(212) 479-2807	 	 

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	 	 	BNP PARIBAS,

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:

Title:
	 	/s/ Betsy Jocher
 

Betsy Jocher 

Director
	 	  
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Greg Smothers
 

Greg Smothers
	 	  
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	1200 Smith St., Suite 3100
Houston, TX 77002
	 	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	Donna Verwold	 	 
	 

	 	Facsimile:
	 	713-659-6915	 	 

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	 	 	CALYON NEW YORK BRANCH,

as a Lander	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Page Dillehunt
 

Page Dillehunt
	 	  
	 

	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Michael Willis
 

Michael Willis
	 	  
	 

	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:

For Notice:

1301 Avenue of the Americas

New York, NY 10019
	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	Gener David	 	 
	 

	 	Facsimile:
	 	917-849-5440	 	 

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	 	 	CITIBANK, N.A.,

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ John F. Miller
 

John F. Miller
	 	  
	 

	 	Title:
	 	Attorney-in-Fact	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	333 Clay St, Suite 3700
Houston, TX 77002
	 	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	John F. Miller	 	 
	 

	 	Facsimile:
	 	713-481-0228	 	 

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	 	 	LASALLE BUSINESS CREDIT, LLC,

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Mitchell J. Tarvid
 

Mitchell J. Tarvid
	 	  
	 

	 	Title:
	 	First Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	135 S. LaSalle Street	 	 
	 

	 	 	 	Chicago, IL 60603	 	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	Mitchell J. Tarvid	 	 
	 

	 	Facsimile:
	 	312-904-6450	 	 

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	 	 	MIZUHO CORPORATE BANK, LTD.,

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Leon Mo
 

Leon Mo
	 	  
	 

	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:

1251, Avenue of the Americas

New York, New York FL32

10020
	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	Leon Mo	 	 
	 

	 	Facsimile:
	 	212-282-4488	 	 

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	 	 	NATIXIS,

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Louis P. Laville, III
 
	 	 
	 

	 	Name:
	 	
Louis P. Laville, III
	 	  
	 

	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Donovan Broussard
 

Donovan Broussard
	 	  
	 

	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	333 Clay Street, Suite 4340
Houston, Texas 77002
	 	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	Tanya McAllister	 	 
	 

	 	Facsimile:
	 	(713)571-6165	 	 

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	 	 	RZB FINANCE, LLC,

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ John A. Valiska
 

John A. Valiska
	 	  
	 

	 	Title:
	 	First Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Elisabeth Hirst
 

Elisabeth Hirst
	 	  
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	24 Grassy Plain Street

Bethel, CT 06801
	 	 
	 

	 	Attention:
	 	Stephen Plauche	 	 
	 

	 	Facsimile:
	 	212-944-2093	 	 

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	 	 	THE BANK OF NOVA SCOTIA,

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Andrew Ostrov
 

Andrew Ostrov
	 	  
	 

	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:

1100 Louisiana, Suite 3000

Houston, Texas 77002

	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	Joe Lattanzi	 	 
	 

	 	Facsimile:
	 	713-752-2425	 	 

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	 	 	SUMITOMO MITSUI BANKING CORP.,

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ William M. Ginn
 

William M. Ginn
	 	  
	 

	 	Title:
	 	General Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	277 Park Ave, 5th Fl.

New York, NY 10172
	 	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	William M. Ginn	 	 
	 

	 	Facsimile:
	 	212-224-5222	 	 

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	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION,

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ John Williammee, Jr.
 

John Williammee, Jr.
	 	  
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	Wachovia Bank, N.A.

171 17th Street, N.W. GA4524

Atlanta, GA 30363
	 	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	John Williammee, Jr.	 	 
	 

	 	Facsimile:
	 	(404) 214-7231	 	 

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	 	 	WELLS FARGO FOOTHILL, LLC,

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Patrick McCormack
 

Patrick McCormack
	 	  
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	2450 Colorado Ave., Suite 3000W
Santa Monica, CA 90404
	 	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	Patrick McCormack	 	 
	 

	 	Facsimile:
	 	(310) 453-7446	 	 

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	 	 	BMO CAPITAL MARKETS FINANCING, INC
 as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Cahal Carmody	 	 
	 	 	 	 	 	 	 
	 	 	Name: Cahal Carmody	 	 
	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	700 Louisiana Street, Suite 4400 
Houston, TX 77002	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Attention:	 	 	 	 
	 	 	Facsimile:	713-223-4007	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	GMAC COMMERCIAL FINANCE, LLC

as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ W. Wakefield Smith	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	W. Wakefield Smith	 	 
	 	 	Title:	 	Director	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	1290 Avenue of the Americas, 3rd floor 

New York NY 10104	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Notices:	 	 	 	 
	 	 	Attention:	 	James Bruce	 	 
	 	 	Title:	 	Director	 	 
	 	 	Address:	 	GMAC Commercial Finance Corporation – Canada	 	 
	 

	 	 	 	 	 	150 York Street, Suite 1314	 	 
	 

	 	 	 	 	 	Toronto, Ontario M5H 3S5	 	 
	 	 	Telephone:	 	416-365-9480 ext. 228	 	 
	 	 	Facsimile:	 	416-365-9493	 	 

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	 	 	NATIONAL CITY BUSINESS CREDIT, INC., 

as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Tom Buda	 	 
	 	 	 	 	 	 	 
	 

	 	Name:
	 	Tom Buda	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	1965 E. 6th Street	 	 
	 

	 	 	 	 	 	4th Floor, Locator 01-3049 	 	 
	 

	 	 	 	 	 	Cleveland, Ohio 44114	 	 
	 	 	Attention:	 	Tom Buda	 	 
	 	 	Facsimile:	 	216-222-9555	 	 

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	 	 	PNC BANK, N.A., 

as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Niki Stone	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Niki Stone	 	 
	 	 	Title:	 	Relationship Manager	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	2100 Ross Ave, Suite 1850 

Dallas, TX 75201	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Attention:	 	Niki Stone	 	 
	 	 	Facsimile:	 	214-871-2015	 	 

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	 	 	REGIONS BANK, an Alabama bank 

as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Michael Fogarty	 	 
	 	 	 	 	 	 	 
	 	 	Name: Michael Fogarty	 	 
	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	5001 Spring Valley Road, Suite 153 West Dallas, TX 75244	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Attention:	 	 	 	 
	 	 	Facsimile:	 	972-383-7505	 	 

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	 	 	SIEMENS FINANCIAL SERVICES, INC., 

as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	/s/ Mark Picillo	 	 
	 	 	 	 	 	 
	 	 	Name:	Mark Picillo	 	 
	 	 	Title:	Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	170 Wood Avenue South	 	 
	 

	 	 	 	 	 	Iselin, NJ 08830	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Attention:	 	Jim Tregillies	 	 
	 	 	Facsimile:	 	732-590-6648	 	 

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	 	 	SOCIÉTÉ
GÉNÉRALE, 

as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	/s/ Chung-Taek oh	 	 
	 	 	 	 	 	 
	 	 	Name:	Chung-Taek oh	 	 
	 	 	Title:	Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	/s/ Pete Lopoukhine	 	 
	 	 	 	 	 	 
	 	 	Name:	Pete Lopoukhine	 	 
	 	 	Title:	Director	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	1221 Avenue of the Americas 

New York, NY 10020	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Attention:	 	Chung-Taek Oh	 	 
	 	 	Facsimile:	 	(212) 278-7953	 	 

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	 	 	BANCO BILBAO VIZCAYA ARGENTARIA S.A., 

as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Mr. Emilio de las Heras	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Mr. Emilio de las Heras	 	 
	 	 	Title:	 	Head of New York	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address: 1345 Avenue of Americas 45th floor	 	 
	 	 	New York, NY 10105	 	 
	 	 	USA	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Attention: Hector Villegas	 	 
	 	 	Facsimile: +1 212 333 3601	 	 

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	 	 	COMERICA BANK, 

as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	/s/ Gerald R. Finney, Jr.	 	 
	 	 	 	 	 	 
	 	 	Name:	Gerald R. Finney, Jr.	 	 
	 	 	Title:	Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	4100 Spring Valley Rd., Ste 400 

Dallas TX 75244	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Attention:	 	Gerald R. Finney, Jr.	 	 
	 	 	Facsimile:	 	972-361-2550	 	 

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	 	 	THE FROST NATIONAL BANK, 
as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	/s/ Howard Kasanoff	 	 
	 	 	 	 	 	 
	 	 	Name: Howard Kasanoff	 	 
	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	100 W. Houston St.	 	 
	 

	 	 	 	 	 	San Antonio, TX 78205	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Attention:	 	Sarah Cernosek	 	 
	 	 	Facsimile:	 	210-220-6703	 	 

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	 	 	GUARANTY BANK, 

as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	/s/ David M. Butler	 	 
	 	 	 	 	 	 
	 	 	Name: David M. Butler	 	 
	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	 
	 	 	8333 Douglas Ave.	 	 
	 	 	Dallas, Texas 75225	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Attention: David Butler	 	 
	 	 	Facsimile: (713) 890-8868	 	 

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	 	 	SOVEREIGN BANK, 

as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	/s/ Kathryn McEnroe Williams	 	 
	 	 	 	 	 	 
	 	 	Name:	Kathryn McEnroe Williams	 	 
	 	 	Title:	Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	75 State Street, 4th Floor	 	 
	 

	 	 	 	 	 	Boston, MA 02109	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Attention:	 	Brenda Page	 	 
	 	 	Facsimile:	 	(617) 346-3430	 	 

SIGNATURE PAGE TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION, 

as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	/s/ Steven C. Gorrzalez	 	 
	 	 	 	 	 	 
	 

	 	Name:
	Steven C. Gorrzalez	 	 
	 

	 	Title:
	Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	U.S., Bank National Association	 	 
	 

	 	 	 	 	 	1 US Bank Plaza	 	 
	 

	 	 	 	 	 	SL-MO-T5BC	 	 
	 

	 	 	 	 	 	Saint Louis, Missouri 63101	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Attention:	 	Senior Credit Officer	 	 
	 	 	Facsimile:	 	314-418-8555	 	 

SIGNATURE PAGE TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 	 	 	 	 
	 	 	ALLIED IRISH BANKS, PLC, 

as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	/s/ Martin Chin	 	 
	 	 	 	 	 	 
	 	 	Name: Martin Chin	 	 
	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	/s/ Mia Bolin	 	 
	 	 	 	 	 	 
	 	 	Name: Mia Bolin	 	 
	 	 	Title: Assistant Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	601 S. Figueroa Street, Suite 4650	 	 
	 

	 	 	 	 	 	Los Angeles, CA 90017	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Attention:	 	Mia Bolin	 	 
	 	 	Facsimile:	 	(213) 593-4766	 	 

SIGNATURE PAGE TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 	 	 
	 	 	AMEGY BANK NATIONAL ASSOCIATION, as a
	 	 	Lender
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ W. Bryan Chapman	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	W. Bryan Chapman
Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Address: 4400 Post Oak Parkway #404
	 	 	                Houston, TX 77027
	 
	 	 	 	 	 	 
	 	 	Attention: Mark A. Serice
	 	 	Facsimile: 713-561-0345

SIGNATURE PAGE TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 	 	 
	 	 	CAPITAL ONE, NATIONAL ASSOCIATION, as a
	 	 	Lender
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Nancy G. Moragas	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Nancy G. Moragas
	 	 	Title: Senior Vice President
	 
	 	 	 	 	 	 
	 	 	Address: 313 Carondelet St., 10th Floor
	 	 	New Orleans, LA 70130
	 
	 	 	 	 	 	 
	 	 	Attention: Nancy G. Moragas
	 	 	Facsimile: (504) 533-5594

SIGNATURE PAGE TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 	 	 	 	 
	 	 	UPS CAPITAL CORPORATION, as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ John P. Holloway	 	 
	 	 	 	 	 	 	 
	 	 	Name: John P. Holloway	 	 
	 	 	Title: Director of Portfolio Management	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	35 Glenlake Parkway, Suite 575	 	 
	 

	 	 	 	 	 	Atlanta, GA 30328	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Attention:	 	Ernesto Moran	 	 
	 	 	Facsimile:	 	404-828-3775	 	 

SIGNATURE PAGE TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 	 	 	 	 
	 	 	WEBSTER BUSINESS CREDIT CORPORATION, as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Julian Vigder	 	 
	 	 	 	 	 	 	 
	 	 	Name: Julian Vigder	 	 
	 	 	Title: Assistant Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	One State Street, 7th Floor	 	 
	 

	 	 	 	 	 	New York, NY 10004	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Attention: Julian Vigder	 	 
	 	 	Facsimile: 212-806-4530	 	 

SIGNATURE PAGE TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

 

COMMITMENT SCHEDULE

	 	 	 	 	 
	 	 	REVOLVING LOAN
	LENDER	 	COMMITMENT
	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION
	 	$	160,000,000	 
	LEHMAN COMMERCIAL PAPER INC.
	 	$	85,000,000	 
	BANK OF AMERICA, N.A.
	 	$	75,000,000	 
	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.
	 	$	75,000,000	 
	FORTIS CAPITAL CORP.
	 	$	75,000,000	 
	THE ROYAL BANK OF SCOTLAND plc
	 	$	75,000,000	 
	BANK OF SCOTLAND
	 	$	60,000,000	 
	BNP PARIBAS
	 	$	60,000,000	 
	CALYON NEW YORK BRANCH
	 	$	60,000,000	 
	CITIBANK, N.A.
	 	$	60,000,000	 
	LASALLE BUSINESS CREDIT, LLC
	 	$	60,000,000	 
	MIZUHO CORPORATE BANK, LTD.
	 	$	60,000,000	 
	NATIXIS
	 	$	60,000,000	 
	RZB FINANCE, LLC
	 	$	60,000,000	 
	THE BANK OF NOVA SCOTIA
	 	$	60,000,000	 
	SUMITOMO MITSUI BANKING CORP.
	 	$	60,000,000	 
	WACHOVIA BANK, NATIONAL ASSOCIATION
	 	$	60,000,000	 
	WELLS FARGO FOOTHILL, LLC
	 	$	60,000,000	 
	BMO CAPITAL MARKETS FINANCING, INC.
	 	$	40,000,000	 
	GMAC COMMERCIAL FINANCE, LLC
	 	$	40,000,000	 
	NATIONAL CITY BUSINESS CREDIT, INC.
	 	$	40,000,000	 
	PNC BANK, N.A.
	 	$	40,000,000	 
	REGIONS BANK
	 	$	40,000,000	 
	SIEMENS FINANCIAL SERVICES, INC.
	 	$	40,000,000	 
	SOCIÉTÉ GÉNÉRALE
	 	$	40,000,000	 
	BANCO BILBAO VIZCAYA ARGENTARIA S.A.
	 	$	25,000,000	 
	COMERICA BANK
	 	$	25,000,000	 
	THE FROST NATIONAL BANK
	 	$	20,000,000	 
	GUARANTY BANK
	 	$	20,000,000	 
	SOVEREIGN BANK
	 	$	20,000,000	 
	U.S. BANK NATIONAL ASSOCIATION
	 	$	20,000,000	 
	ALLIED IRISH BANKS, PLC
	 	$	15,000,000	 
	AMEGY BANK NATIONAL ASSOCIATION
	 	$	15,000,000	 
	CAPITAL ONE, NATIONAL ASSOCIATION
	 	$	15,000,000	 
	UPS CAPITAL CORPORATION
	 	$	15,000,000	 
	WEBSTER BUSINESS CREDIT CORPORATION
	 	$	15,000,000	 
	 
	 	 	 	 
	TOTAL
	 	$	1,750,000,000	 

 

 

PRICING SCHEDULE

The following shall be used to calculate the Applicable Margin for Revolving Loans during the
applicable period when the Borrower’s senior long-term secured indebtedness (without giving
effect to any credit enhancement) is rated BBB- or better by S&P or Baa3 or better by Moody’s.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applicable	 	 	 	 	 	 	 	 
	Margin for	 	 	 	 	 	 	 	 
	Revolving Loans	 	Level I Status	 	Level II Status	 	Level III Status	 	Level IV Status
	Eurodollar Rate
	 	 	0.875	%	 	 	1.00	%	 	 	1.25	%	 	 	1.50	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Floating Rate
	 	 	0.00	%	 	 	0.00	%	 	 	0.00	%	 	 	0.00	%

The following shall be used to calculate the Applicable Margin for Revolving Loans during the
applicable period when the Borrower’s senior long-term secured indebtedness (without giving
effect to any credit enhancement) is rated BB+ by S&P or Ba1 by Moody’s and the Borrower does
not qualify for pricing as set forth in the immediately preceding grid.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applicable	 	 	 	 	 	 	 	 
	Margin for	 	 	 	 	 	 	 	 
	Revolving Loans	 	Level I Status	 	Level II Status	 	Level III Status	 	Level IV Status
	Eurodollar Rate
	 	 	1.00	%	 	 	1.25	%	 	 	1.50	%	 	 	1.75	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Floating Rate
	 	 	0.00	%	 	 	0.00	%	 	 	0.00	%	 	 	0.00	%

The following shall be used to calculate the Applicable Margin for Revolving Loans during the
applicable period when the Borrower’s senior long-term secured indebtedness (without giving
effect to any credit enhancement) is lower than BB+ by S&P or Ba1 by Moody’s and the Borrower
does not qualify for pricing as set forth in the two immediately preceding pricing grids.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applicable	 	 	 	 	 	 	 	 
	Margin for	 	 	 	 	 	 	 	 
	Revolving Loans	 	Level I Status	 	Level II Status	 	Level III Status	 	Level IV Status
	Eurodollar Rate
	 	 	1.25	%	 	 	1.50	%	 	 	1.75	%	 	 	2.00	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Floating Rate
	 	 	0.00	%	 	 	0.00	%	 	 	0.00	%	 	 	0.25	%

     For the purposes of this Schedule, the following terms have the following meanings,
subject to the final paragraph of this Schedule:

     “Level I Status” exists at any date if, as of the last day of the applicable fiscal
quarter of the Borrower, average daily Excess Availability for such fiscal quarter was greater
than 45% of the average monthly Borrowing Base for such fiscal quarter.

 

 

     “Level II Status” exists at any date if, as of the last day of the applicable fiscal quarter
of the Borrower, (i) the Borrower has not qualified for Level I Status and (ii) average daily
Excess Availability for such fiscal quarter was less than or
equal to 45% of the average monthly Borrowing Base for such fiscal quarter but greater than
30% of the average monthly Borrowing Base for such fiscal quarter.

     “Level III Status” exists at any date if, as of the last day of the applicable fiscal
quarter, (i) the Borrower has not qualified for Level I Status or Level II Status and (ii) average
daily Excess Availability for such fiscal quarter was less than or equal to 30% of the average
monthly Borrowing Base for such fiscal quarter but greater than 15% of the average monthly
Borrowing Base for such fiscal quarter.

     “Level IV Status” exists at any date if, as of the last day of the applicable fiscal quarter,
(i) the Borrower has not qualified for Level I Status, Level II Status, or Level III Status and
(ii) average daily Excess Availability for such fiscal quarter was less than or equal to 15% of
the average monthly Borrowing Base for such fiscal quarter.

     “Status” means either Level I Status, Level II Status, Level III Status or Level IV
Status.

The Applicable Margin shall be determined in accordance with the foregoing tables based on the
Borrower’s Status for the applicable fiscal quarter. Such Status shall be determined based upon the
Interim Collateral Reports and Monthly Collateral Reports delivered for such fiscal quarter.
Adjustments, if any, to the Applicable Margin shall be effective five Business Days after the Agent
has received all of the applicable Interim Collateral Reports and Monthly Collateral Reports. If
the Borrower fails to deliver such Interim Collateral Reports and Monthly Collateral Reports to the
Agent at the time required pursuant to Section 6.1, then the Applicable Margin shall be the highest
Applicable Margin set forth in the foregoing tables until the date on which such Interim Collateral
Reports and Monthly Collateral Reports are so delivered. In the event that any financial statement
or certificate required by Section 6.1.1, 6.1.2, 6.1.3 or 6.1.4 is shown to be inaccurate
(regardless of whether this Agreement or the financing commitments are in effect), and such
inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for any
period (an “Applicable Period”) than the Applicable Margin applied for such Applicable
Period: (x) the Borrower shall immediately deliver to the Agent a correct certificate for such
Applicable Period, (y) the Applicable Margin for such Applicable Period shall be determined by
reference to such certificate, and (z) the Borrower shall immediately pay to the Agent the accrued
additional interest owing as a result of such increased Applicable Margin for such Applicable
Period, which payment shall be promptly applied by the Agent in accordance with the terms hereof. This provision shall not limit any other
rights and remedies of the Agent and the Lenders hereunder.

Notwithstanding any of the foregoing, the Applicable Margin in respect of the Eurodollar Rate
shall be deemed to be 1.00% and the Applicable Margin in respect of the Floating Rate shall be
deemed to be 0.00% until the Agent’s receipt of the applicable financial statements for the
Borrower’s fiscal quarter ending on or about September 30, 2007 and adjustments to the Applicable
Margin shall thereafter be effected in accordance with the preceding paragraphs.exv10w2

 

Exhibit 10.2

EXECUTION COPY

 

$700,000,000

CREDIT AGREEMENT

among

TESORO CORPORATION,

as Borrower,

The Several Lenders

from Time to Time Parties Hereto,

LEHMAN BROTHERS INC.

and

J.P. MORGAN SECURITIES INC.,

as Joint Lead Arrangers,

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

as Syndication Agent

and

LEHMAN COMMERCIAL PAPER INC.,

as Administrative Agent

Dated as of May 11, 2007

 

 

 

EXECUTION COPY

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	SECTION 1. DEFINITIONS	 	 	1	 
	 

	 	 	1.1	 	 	Defined Terms
	 	 	1	 
	 

	 	 	1.2	 	 	Other Definitional Provisions
	 	 	19	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECTION 2. AMOUNT AND TERMS OF COMMITMENTS	 	 	19	 
	 

	 	 	2.1	 	 	Commitments
	 	 	19	 
	 

	 	 	2.2	 	 	Procedure for Borrowing
	 	 	19	 
	 

	 	 	2.3	 	 	Repayment of Loans; Evidence of Debt
	 	 	20	 
	 

	 	 	2.4	 	 	Fees
	 	 	20	 
	 

	 	 	2.5	 	 	Optional Prepayments
	 	 	20	 
	 

	 	 	2.6	 	 	Mandatory Prepayments and Commitment Reductions
	 	 	21	 
	 

	 	 	2.7	 	 	Conversion and Continuation Options
	 	 	21	 
	 

	 	 	2.8	 	 	Minimum Amounts and Maximum Number of Eurodollar Tranches
	 	 	22	 
	 

	 	 	2.9	 	 	Interest Rates and Payment Dates
	 	 	22	 
	 

	 	 	2.10	 	 	Computation of Interest and Fees
	 	 	22	 
	 

	 	 	2.11	 	 	Inability to Determine Interest Rate
	 	 	23	 
	 

	 	 	2.12	 	 	Pro Rata Treatment and Payments
	 	 	23	 
	 

	 	 	2.13	 	 	Requirements of Law
	 	 	25	 
	 

	 	 	2.14	 	 	Taxes
	 	 	26	 
	 

	 	 	2.15	 	 	Indemnity
	 	 	27	 
	 

	 	 	2.16	 	 	Illegality
	 	 	28	 
	 

	 	 	2.17	 	 	Change of Lending Office
	 	 	28	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECTION 3. REPRESENTATIONS AND WARRANTIES	 	 	28	 
	 

	 	 	3.1	 	 	Existence and Standing
	 	 	28	 
	 

	 	 	3.2	 	 	Authorization and Validity
	 	 	28	 
	 

	 	 	3.3	 	 	No Conflict; Government Consent
	 	 	29	 
	 

	 	 	3.4	 	 	Financial Statements
	 	 	29	 
	 

	 	 	3.5	 	 	Material Adverse Change
	 	 	29	 
	 

	 	 	3.6	 	 	Taxes
	 	 	29	 
	 

	 	 	3.7	 	 	Litigation and Contingent Obligations
	 	 	30	 
	 

	 	 	3.8	 	 	Subsidiaries
	 	 	30	 
	 

	 	 	3.9	 	 	ERISA
	 	 	30	 
	 

	 	 	3.10	 	 	Accuracy of Information
	 	 	30	 
	 

	 	 	3.11	 	 	Regulation U
	 	 	30	 
	 

	 	 	3.12	 	 	Material Agreements
	 	 	30	 
	 

	 	 	3.13	 	 	Compliance With Laws
	 	 	30	 
	 

	 	 	3.14	 	 	Ownership of Properties
	 	 	31	 
	 

	 	 	3.15	 	 	Plan Assets; Prohibited Transactions
	 	 	31	 
	 

	 	 	3.16	 	 	Environmental Matters
	 	 	31	 
	 

	 	 	3.17	 	 	Investment Company Act
	 	 	31	 
	 

	 	 	3.18	 	 	Insurance
	 	 	31	 

i

 

EXECUTION COPY

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	 

	 	 	3.19	 	 	No Default or Unmatured Default
	 	 	31	 
	 

	 	 	3.20	 	 	Use of Proceeds
	 	 	31	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECTION 4. CONDITIONS PRECEDENT	 	 	32	 
	 

	 	 	4.1	 	 	Effectiveness of Commitment
	 	 	32	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECTION 5. AFFIRMATIVE COVENANTS	 	 	34	 
	 

	 	 	5.1	 	 	Financial Reporting
	 	 	34	 
	 

	 	 	5.2	 	 	Conduct of Business
	 	 	35	 
	 

	 	 	5.3	 	 	Maintenance of Properties
	 	 	36	 
	 

	 	 	5.4	 	 	Inspection; Keeping of Books and Records
	 	 	36	 
	 

	 	 	5.5	 	 	Notice of Default
	 	 	36	 
	 

	 	 	5.6	 	 	Taxes
	 	 	36	 
	 

	 	 	5.7	 	 	Insurance
	 	 	36	 
	 

	 	 	5.8	 	 	Compliance with Laws
	 	 	37	 
	 

	 	 	5.9	 	 	Pro Forma Financial Statements
	 	 	37	 
	 

	 	 	5.10	 	 	Future Guarantors
	 	 	37	 
	 

	 	 	5.11	 	 	Confidential Information Memoranda
	 	 	37	 
	 

	 	 	5.12	 	 	Use of Proceeds
	 	 	38	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECTION 6. NEGATIVE COVENANTS	 	 	38	 
	 

	 	 	6.1	 	 	Financial Condition Covenants
	 	 	38	 
	 

	 	 	6.2	 	 	Limitation on Indebtedness
	 	 	39	 
	 

	 	 	6.3	 	 	Limitation on Liens
	 	 	40	 
	 

	 	 	6.4	 	 	Limitation on Merger
	 	 	42	 
	 

	 	 	6.5	 	 	Limitation on Disposition of Property
	 	 	42	 
	 

	 	 	6.6	 	 	Limitation on Restricted Payments
	 	 	43	 
	 

	 	 	6.7	 	 	Limitation on Investments
	 	 	43	 
	 

	 	 	6.8	 	 	Limitation on Transactions with Affiliates
	 	 	44	 
	 

	 	 	6.9	 	 	Limitation on Subsidiary Covenants
	 	 	44	 
	 

	 	 	6.10	 	 	Limitation on Contingent Obligations
	 	 	44	 
	 

	 	 	6.11	 	 	Limitation on Financial Contracts
	 	 	45	 
	 

	 	 	6.12	 	 	Limitation on Repayment of Indebtedness
	 	 	45	 
	 

	 	 	6.13	 	 	Limitation on Multiemployer Plans
	 	 	45	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECTION 7. EVENTS OF DEFAULT	 	 	45	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECTION 8. GUARANTEE	 	 	48	 
	 

	 	 	8.1	 	 	Guarantee
	 	 	48	 
	 

	 	 	8.2	 	 	Right of Contribution
	 	 	48	 
	 

	 	 	8.3	 	 	No Subrogation
	 	 	49	 
	 

	 	 	8.4	 	 	Amendments, etc. with respect to the Obligations
	 	 	49	 
	 

	 	 	8.5	 	 	Guarantee Absolute and Unconditional
	 	 	49	 
	 

	 	 	8.6	 	 	Reinstatement
	 	 	50	 
	 

	 	 	8.7	 	 	Payments
	 	 	50	 

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EXECUTION COPY

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	SECTION 9. THE AGENTS	 	 	50	 
	 

	 	 	9.1	 	 	Appointment
	 	 	50	 
	 

	 	 	9.2	 	 	Delegation of Duties
	 	 	51	 
	 

	 	 	9.3	 	 	Exculpatory Provisions
	 	 	51	 
	 

	 	 	9.4	 	 	Reliance by Agents
	 	 	51	 
	 

	 	 	9.5	 	 	Notice of Default
	 	 	52	 
	 

	 	 	9.6	 	 	Non-Reliance on Agents and Other Lenders
	 	 	52	 
	 

	 	 	9.7	 	 	Indemnification
	 	 	52	 
	 

	 	 	9.8	 	 	Agent in Its Individual Capacity
	 	 	53	 
	 

	 	 	9.9	 	 	Successor Administrative Agent
	 	 	53	 
	 

	 	 	9.10	 	 	Authorization to Release Guarantees
	 	 	53	 
	 

	 	 	9.11	 	 	The Arrangers
	 	 	53	 
	 
	 	 	 	 	 	 	 	 	 	 
	SECTION 10. MISCELLANEOUS	 	 	54	 
	 

	 	 	10.1	 	 	Amendments and Waivers
	 	 	54	 
	 

	 	 	10.2	 	 	Notices
	 	 	55	 
	 

	 	 	10.3	 	 	No Waiver; Cumulative Remedies
	 	 	56	 
	 

	 	 	10.4	 	 	Survival of Representations and Warranties
	 	 	56	 
	 

	 	 	10.5	 	 	Payment of Expenses
	 	 	56	 
	 

	 	 	10.6	 	 	Successors and Assigns; Participations and Assignments
	 	 	58	 
	 

	 	 	10.7	 	 	Adjustments; Set-off
	 	 	60	 
	 

	 	 	10.8	 	 	Counterparts
	 	 	61	 
	 

	 	 	10.9	 	 	Severability
	 	 	61	 
	 

	 	 	10.10	 	 	Integration
	 	 	61	 
	 

	 	 	10.11	 	 	GOVERNING LAW 
	 	 	61	 
	 

	 	 	10.12	 	 	Submission To Jurisdiction; Waivers
	 	 	61	 
	 

	 	 	10.13	 	 	Acknowledgments
	 	 	62	 
	 

	 	 	10.14	 	 	Confidentiality
	 	 	62	 
	 

	 	 	10.15	 	 	Release of Guarantee Obligations
	 	 	63	 
	 

	 	 	10.16	 	 	Accounting Changes
	 	 	63	 
	 

	 	 	10.17	 	 	WAIVERS OF JURY TRIAL 
	 	 	64	 

iii

 

EXECUTION COPY

SCHEDULES:

	 	 	 
	1.1

	 	Commitments
	3.8

	 	Subsidiaries
	3.9

	 	Exceptions to ERISA
	6.2(b)

	 	Existing Indebtedness
	6.3(e)

	 	Existing Liens
	6.7(b)

	 	Existing Investments

EXHIBITS:

	 	 	 
	A

	 	Form of Compliance Certificate
	B

	 	Form of Closing Certificate
	C

	 	Form of Assignment and Acceptance
	D

	 	Form of Legal Opinion of Fulbright & Jaworski L.L.P.
	E

	 	Form of Note
	F

	 	Form of Exemption Certificate
	G

	 	Form of Borrowing Notice
	H

	 	Wire Instructions
	I

	 	Closing Documents
	J

	 	Officer’s Certificate
	K

	 	Solvency Certificate

 

 

 

          CREDIT AGREEMENT, dated as of May 11, 2007, among TESORO CORPORATION, a Delaware corporation
(the “Borrower”), the several banks and other financial institutions or entities from time
to time parties to this Agreement (the “Lenders”), LEHMAN BROTHERS INC. and J.P. MORGAN
SECURITIES INC., as joint lead arrangers (in such capacity, the “Arrangers”), JPMORGAN
CHASE BANK, NATIONAL ASSOCIATION, as syndication agent (in such capacity, together with its
successors in such capacity, the “Syndication Agent”), and LEHMAN COMMERCIAL PAPER INC., as
administrative agent (in such capacity, the “Administrative Agent”).

W I T N E S S E T H:

          WHEREAS, the Borrower has requested that the Lenders make an interim loan credit facility
available to the Borrower in order to (i) fund a portion of the acquisition by the Borrower and its
subsidiaries of certain of the assets (the “Shell Acquired Assets”) of Shell Oil Products
US located in southern California (the “Shell Acquisition”) pursuant to the Shell
Acquisition Agreements, and (ii) pay related costs and expenses incurred in connection with the
Shell Acquisition and the financing thereof;

          WHEREAS, the Lenders are willing to make such interim loan credit facility available upon and
subject to the terms and conditions hereinafter set forth;

          NOW, THEREFORE, in consideration of the promises and the agreements hereinafter set forth and
for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties hereto hereby agree as follows:

SECTION 1. DEFINITIONS

          1.1 Defined Terms. As used in this Agreement, the terms listed in this Section 1.1
shall have the respective meanings set forth in this Section 1.1.

          “Acquisition”: means any transaction, or any series of related transactions,
consummated on or after the Closing Date, by which the Borrower or any of its Subsidiaries (i)
acquires any going business or all or substantially all of the assets of any firm, corporation or
limited liability company, or division thereof, whether through purchase of assets, merger or
otherwise or (ii) directly or indirectly acquires (in one transaction or as the most recent
transaction in a series of transactions) at least a majority (in number of votes) of the securities
of a corporation which have ordinary voting power for the election of directors (other than
securities having such power only by reason of the happening of a contingency) or a majority (by
percentage of voting power) of the outstanding ownership interests of a partnership or limited
liability company of any Person.

          “Administrative Agent”: as defined in the preamble hereto.

          “Affiliate”: of any Person means any other Person directly or indirectly controlling,
controlled by or under common control with such Person. A Person shall be deemed to control
another Person if the controlling Person is the “beneficial owner” (as defined in Rule
13d-3 under the Securities Exchange Act of 1934) of 10% or more of any class of voting
securities (or other ownership interests) of the controlled Person or possesses, directly or
indirectly, the

 

2

power to direct or cause the direction of the management or policies of the
controlled Person, whether through ownership of voting securities, by contract or otherwise.

          “Agents”: the collective reference to the Syndication Agent and the Administrative
Agent.

          “Aggregate Exposure”: with respect to any Lender at any time, an amount equal to (a)
until the Closing Date, the aggregate amount of such Lender’s Commitments at such time and (b)
thereafter, the aggregate then unpaid principal amount of such Lender’s Loans.

          “Aggregate Exposure Percentage”: with respect to any Lender at any time, the ratio
(expressed as a percentage) of such Lender’s Aggregate Exposure at such time to the sum of the
Aggregate Exposures of all Lenders at such time.

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

          “Agreement Accounting Principles”: means US GAAP, applied in a manner consistent with
that used in preparing the financial statements of the Borrower referred to in Section 3.4;
provided, however, that with respect to the calculation of the financial covenants set
forth in Section 6.1 (and the defined terms used in such Sections), “Agreement Accounting
Principles” means US GAAP as in effect in the United States as of the Closing Date, applied in
a manner consistent with that used in preparing the financial statements of the Borrower referred
to in Section 3.4 hereof.

          “Applicable Margin”: a per annum rate for each period set forth below:

	 	 	 	 	 	 	 	 	 
	 	 	Base Rate	 	Eurodollar
	 	 	Loans	 	Loans
	From and including the Closing Date to but
excluding the date which is 90 days after the
Closing Date
	 	 	0.25	%	 	 	1.25	%
	From and including the date which is 90 days
after the Closing Date to but excluding the date
which is 135 days after the Closing Date
	 	 	0.50	%	 	 	1.50	%
	From and including the date which is 135 days
after the Closing Date to but excluding the date
which is 180 days after the Closing Date
	 	 	0.75	%	 	 	1.75	%
	Thereafter
	 	 	1.25	%	 	 	2.25	%

          “Arrangers”: as defined in the preamble hereto.

          “Asset Sale”: any Disposition of Property or series of related Dispositions of
Property which yields gross proceeds to the Borrower or any of its Subsidiaries (valued at the
initial principal amount thereof in the case of non-cash proceeds consisting of notes or other
debt securities and valued at fair market value in the case of other non-cash proceeds).

 

3

          “Assignee”: as defined in Section 10.6(c).

          “Assignor”: as defined in Section 10.6(c).

          “Authorized Officer”: means any of the chief executive officer, president, chief
operating officer, chief financial officer, treasurer, vice president-finance or vice
president-controller of the Borrower, acting singly.

          “Base Rate”: means, for any day, a fluctuating rate of interest per annum equal to
the higher of (i) the Prime Rate for such day and (ii) the sum of (a) the Federal Funds Effective
Rate for such day and (b) one-half of one percent (0.5%) per annum.

          “Base Rate Loans”: Loans for which the applicable rate of interest is based upon the
Base Rate.

          “Benefitted Lender”: as defined in Section 10.7.

          “Board”: the Board of Governors of the Federal Reserve System of the United States
(or any successor).

          “Borrower”: as defined in the preamble hereto.

          “Borrowing Notice”: with respect to any request for borrowing of Loans hereunder, a
notice from the Borrower, substantially in the form of, and containing the information prescribed
by, Exhibit G, delivered to the Administrative Agent.

          “Business Day”: means (i) with respect to any borrowing, payment or rate selection of
Eurodollar Loans, a day (other than a Saturday or Sunday) on which banks generally are open in
Chicago, Illinois and New York, New York for the conduct of substantially all of their commercial
lending activities, interbank wire transfers can be made on the Fedwire system and dealings in
Dollars are carried on in the London interbank market and (ii) for all other purposes, a day (other
than a Saturday or Sunday) on which banks generally are open in Chicago, Illinois and New York, New
York for the conduct of substantially all of their commercial lending activities and interbank wire
transfers can be made on the Fedwire system.

          “Capital Lease Obligations”: of a Person means the amount of the obligations of such
Person under Capitalized Leases which would be shown as a liability on a balance sheet of such
Person prepared in accordance with Agreement Accounting Principles.

          “Capital Stock”: any and all shares, interests, participations or other equivalents
(however designated) of capital stock of a corporation, any and all equivalent ownership interests
in a Person (other than a corporation) and any and all warrants, rights or options to purchase any
of the foregoing.

          “Capitalized Lease”: of a Person means any lease of Property by such Person as lessee
which would be capitalized on a balance sheet of such Person prepared in accordance with Agreement
Accounting Principles.

 

4

          “Cash Equivalents”: (i) short-term obligations of, or fully guaranteed by, the United
States of America, and the senior notes of government sponsored enterprises, (ii) commercial paper
rated A-1 or better by S&P or P-1 or better by Moody’s, (iii) demand deposit accounts maintained in
the ordinary course of business, (iv) certificates of deposit issued by and time deposits with
commercial banks (whether domestic or foreign) having capital and surplus in excess of
$100,000,000; provided in each case that the same provides for payment of both principal
and interest (and not principal alone or interest alone) and is not subject to any contingency
regarding the payment of principal or interest, (v) tax exempt, auction rate securities, and
variable rate demand notes which are AAA rated, (vi) money market mutual funds where total
investment does not exceed five percent of total assets, and (vii) repurchase agreements that are
collateralized by securities for direct investments.

          “Change of Control”: the occurrence of any of the following events: (i) there shall
be consummated (A) any consolidation or merger of the Borrower in which the Borrower is not the
continuing or surviving corporation or pursuant to which shares of the Borrower’s common stock
would be converted into cash, securities or other property, other than a merger of the Borrower
where a majority of the Board of Directors of the surviving corporation are, and for a two year
period after the merger continue to be, persons who were directors of the Borrower immediately
prior to such merger or were elected as directors, or nominated for election as directors, by a
vote of at least two-thirds of the directors then still in office who were directors of the
Borrower immediately prior to such merger, or (B) any sale, lease, exchange or transfer (in one
transaction or a series of transactions) of all or substantially all of the assets of the Borrower,
unless, immediately following such sale, lease, exchange or transfer, such assets are owned,
directly or indirectly, by the Borrower or one or more Subsidiaries of the Borrower; (ii) the
shareholders of the Borrower shall approve any plan or proposal for the liquidation or dissolution
of the Borrower; (iii) (A) any “person” as defined in the Securities Exchange Act of 1934 (the
“Exchange Act”), other than the Borrower or a Subsidiary or any employee benefit plan
sponsored by the Borrower or a Subsidiary, shall become the beneficial owner (within the meaning of
Rule 13d-3 under the Exchange Act) of securities of the Borrower representing 50% or more of the
combined voting power of the Borrower’s then outstanding securities ordinarily (and apart from
rights accruing in special circumstances) having the right to vote in the election of directors, as
a result of a tender or exchange offer, open market purchases, privately negotiated purchases or
otherwise, and (B) at any time during a period of two consecutive years thereafter, individuals who
immediately prior to the beginning of such period constituted the Board of Directors of the
Borrower shall cease for any reason to constitute at least a majority thereof, unless the election
or the nomination by the Board of Directors for election by the Borrower’s shareholders of each new
director during such period was approved by a vote of at least two-thirds of the directors then
still in office who were directors at the beginning of such period; or (iv) a “Change of Control”
or like event under any agreement, document or instrument evidencing any Material Indebtedness.

          “Closing Date”: means May 11, 2007.

          “Code”: means the Internal Revenue Code of 1986, as amended, reformed or otherwise
modified from time to time, and any rule or regulation issued thereunder.

          “Commitment”: as to any Lender, the obligation of such Lender, if any, to make a Loan
to the Borrower hereunder in a principal amount not to exceed the amount set forth under the

 

5

heading “Commitment” opposite such Lender’s name on Schedule 1.1 hereto, as the same may be changed
from time to time pursuant to the terms hereof. The aggregate amount of the Commitments is
$700,000,000.

          “Compliance Certificate”: a certificate duly executed by a Authorized Officer,
substantially in the form of Exhibit A.

          “Confidential Information Memoranda”: as defined in Section 5.11(a).

          “Consolidated EBITDA”: means Consolidated Net Income plus, to the extent
deducted from revenues in determining Consolidated Net Income, (i) Consolidated Interest Expense,
(ii) income and franchise tax expense, (iii) depreciation, (iv) amortization and (v) any other
non-cash charges, minus, to the extent included in Consolidated Net Income, (i) interest
income (except to the extent deducted in determining Consolidated Interest Expense) and (ii) any
other non-cash income, all reported for the Borrower and its Subsidiaries on a consolidated basis.

          “Consolidated Indebtedness”: at any date, the aggregate principal amount of all
Indebtedness of the Borrower and its Subsidiaries at such date, determined on a consolidated basis
in accordance with US GAAP.

          “Consolidated Indebtedness to Capitalization Ratio”: at any date, the ratio of (a)
Consolidated Indebtedness at such date to (b) the sum of Consolidated Indebtedness and Consolidated
Net Worth at such date.

          “Consolidated Interest Coverage Ratio”: for any period, the ratio of (a) Consolidated
EBITDA of the Borrower and its Subsidiaries for such period to (b) Consolidated Interest Expense of
the Borrower and its Subsidiaries for such period.

          “Consolidated Interest Expense”: means, with reference to any period, the accrued
interest expense of the Borrower and its Subsidiaries reported on a consolidated basis for such
period, including, without limitation, yield or any other financing costs resembling interest which
are payable under any Receivables Purchase Facility.

          “Consolidated Net Income”: means, with reference to any period, the consolidated net
earnings (or loss) of the Borrower and its Subsidiaries reported for such period.

          “Consolidated Net Worth”: means at any time, with respect to any Person, the
consolidated total stockholders’ equity of such Person and its Subsidiaries reported on a
consolidated basis in accordance with Agreement Accounting Principles and as reported in such
Person’s most recent Form 10-K or Form 10-Q filing, as applicable, with the U.S. Securities and
Exchange Commission, minus at all times all items that are reported in such Form 10-K or Form 10-Q
filing, as applicable, as “acquired intangibles net” and “goodwill.”

          “Contingent Obligation”: of a Person means any agreement, undertaking or arrangement
by which such Person assumes, guarantees, endorses, contingently agrees to purchase or provide
funds for the payment of, or otherwise becomes or is contingently liable upon, the obligation or
liability of any other Person, or agrees to maintain the net worth or working capital or other
financial condition of any other Person, or otherwise assures any creditor of such other

 

6

Person
against loss; provided, however, that amounts held or allocated as reserves for obligations arising
under or in connection with (i) any Plan or other pension fund related item, (ii) litigation,
judgments and legal proceedings, and (iii) compliance with Environmental Laws, including, without
limitation, the remediation of any environmental related issues with respect to its Property, shall
not constitute “Contingent Obligations.”

          “Continuing Director”: with respect to any Person as of any date of determination,
any member of the board of directors of such Person who (i) was a member of such board of directors
on the Closing Date, or (ii) was nominated for election or elected to such board of directors with
the approval of the required majority of the Continuing Directors who were members of such board at
the time of such nomination or election; provided that any individual who is so elected or
nominated in connection with a merger, consolidation, acquisition or similar transaction shall not
be a Continuing Director unless such individual was a Continuing Director prior thereto.

          “Controlled Group”: means all members of a controlled group of corporations or other
business entities and all trades or businesses (whether or not incorporated) under common control
which, together with the Borrower or any of its Subsidiaries, are treated as a single employer
under Section 414 of the Code.

          “Default”: means an event described in Section 7.

          “Derivatives Counterparty”: as defined in Section 6.6.

          “Disposition”: with respect to any Property, any sale, lease, sale and leaseback,
assignment, conveyance, transfer or other disposition thereof; and the terms “Dispose” and
“Disposed of” shall have correlative meanings.

          “Dollar” “dollar” and “$”: means the lawful currency of the United
States of America.

          “Domestic Subsidiary”: any Subsidiary of the Borrower organized under the laws of any
jurisdiction within the United States of America.

          “Environmental Laws”: means any and all federal, state and local statutes, laws,
judicial decisions, regulations, ordinances, rules, judgments, orders, decrees, plans, injunctions,
permits, concessions, grants, franchises, licenses, agreements and other governmental restrictions
relating to (i) the protection of the environment, (ii) the effect of the environment on human
health, (iii) emissions, discharges or releases of pollutants, contaminants, hazardous substances
or wastes into surface water, ground water or land, or (iv) the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of pollutants, contaminants,
hazardous substances or wastes or the clean-up or other remediation thereof.

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

          “Eurodollar Base Rate”: means, with respect to any Eurodollar Advance for any
Interest Period, the rate appearing on Reuters BBA Libor Rates Page 3750 (or on any successor or

 

7

substitute page of such Service, or any successor to or substitute for such Service, providing rate
quotations comparable to those currently provided on such page of such Service, as determined by
the Administrative Agent from time to time for purposes of providing quotations of interest rates
applicable to deposits in Dollars in the London interbank market) at approximately 11:00 a.m.,
London time, two (2) Business Days prior to the commencement of such Interest Period, as the rate
for deposits in Dollars with a maturity comparable to such Interest Period. In the event that such
rate is not available at such time for any reason, then the “Eurodollar Base Rate” with
respect to such Eurodollar Advance for such Interest Period shall be the rate at which deposits in
Dollars of $5,000,000 and for a maturity comparable to such Interest Period are offered by the
principal London office of the Administrative Agent in immediately available funds in the London
interbank market at approximately 11:00 a.m., London time, two (2) Business Days prior to the
commencement of such Interest Period.

          “Eurodollar Loans”: Loans for which the applicable rate of interest is based upon the
Eurodollar Rate.

          “Eurodollar Rate”: means, with respect to a Eurodollar Loan for the relevant Interest
Period, the sum of (i) the quotient of (a) the Eurodollar Base Rate applicable to such Interest
Period, divided by (b) one minus the Reserve Requirement (expressed as a decimal) applicable to
such Interest Period, plus (ii) the then Applicable Margin, changing as and when the Applicable
Margin changes.

          “Eurodollar Tranche”: the collective reference to Eurodollar Loans the then current
Interest Periods with respect to all of which begin on the same date and end on the same later date
(whether or not such Loans shall originally have been made on the same day).

          “Event of Default”: any of the events specified in Section 7, provided that
any requirement for the giving of notice, the lapse of time, or both, has been satisfied.

          “Excluded Foreign Subsidiary”: any Foreign Subsidiary in respect of which the
guaranteeing by such Subsidiary of the Obligations, would, in the good faith judgment of the
Borrower, result in adverse tax consequences to the Borrower.

          “Excluded Subsidiary”: means each of Tesoro Canada Supply & Distribution Ltd., Tesoro
(UK) Supply & Trading, Ltd., Philosopher’s Stone Land Company, Philosopher’s Stone Land Partners,
L.P., AHZ, LLC, MZH, LLC, ZAO, LLC, Tesoro Marine Services, LLC, Tesoro Marine Services Holding
Company, Interior Fuels Company, Tesoro Petroleum (Singapore) Pte. Ltd., and such other
Subsidiaries that the Borrower, with the Administrative Agent’s prior written consent, may identify
to the Administrative Agent and the Lenders from time to time; provided, that no entity
(including any subsidiary of an Excluded Subsidiary) that is or becomes a guarantor under the
Senior Notes Indentures shall be an Excluded Subsidiary.

          “Facility”: the Commitments and the Loans made thereunder.

          “Federal Funds Effective Rate”: means, for any day, an interest rate per annum equal
to the weighted average (rounded upwards, if necessary, to the next 1/100th of 1%) of
the rates on overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers on such day, as published for such day (or, if such day is not a

 

8

Business Day, for the immediately preceding Business Day) by the Federal Reserve Bank of New York,
or, if such rate is not so published for any day which is a Business Day, the average (rounded
upwards, if necessary, to the next 1/100th of 1%) of the quotations at approximately
10:00 a.m. (Chicago time) for such day for such transactions received by the Administrative Agent
from three Federal funds brokers of recognized standing selected by the Administrative Agent in its
sole discretion.

          “Foreign Subsidiary”: any Subsidiary of the Borrower that is not a Domestic
Subsidiary.

          “Funding Office”: the office specified from time to time by the Administrative Agent
as its funding office by notice to the Borrower and the Lenders.

          “Governmental Authority”: any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank
or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative
functions of or pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners).

          “Guarantee”: means the guarantee provided by each Guarantor pursuant to Section 8 of
this Agreement.

          “Guarantors”: each Subsidiary of the Borrower in existence on the Closing Date (other
than an Excluded Foreign Subsidiary), each new Subsidiary that incurs a Guarantee pursuant to
Section 5.10, and each Subsidiary during any period that it is a guarantor under any of the Senior
Notes Indentures.

          “Indebtedness”: of a Person means, at any time, without duplication, such Person’s
(i) obligations for borrowed money, (ii) obligations representing the deferred purchase price of
Property or services (other than current accounts payable arising in the ordinary course of such
Person’s business payable on terms customary in the trade), (iii) obligations, whether or not
assumed, secured by Liens or payable out of the proceeds or production from Property now or
hereafter owned or acquired by such Person, (iv) obligations which are evidenced by notes, bonds,
debentures, acceptances, or other instruments, (v) obligations to purchase securities or other
Property arising out of or in connection with the sale of the same or substantially similar
securities or Property, (vi) Capitalized Lease Obligations, (vii) Contingent Obligations of such
Person, (viii) reimbursement obligations under Letters of Credit, bankers’ acceptances, surety
bonds and similar instruments, (ix) Off-Balance Sheet Liabilities, (x) obligations under Sale and
Leaseback Transactions, (xi) Net Mark-to-Market Exposure under Rate Management Transactions, (xii)
all obligations of such Person, contingent or otherwise, to purchase, redeem, retire or otherwise
acquire for value any capital stock of such Person, (xiii) the liquidation value of any mandatorily
redeemable preferred capital stock of such Person or its Subsidiaries held by any Person other than
such Person and its wholly-owned Subsidiaries, (xiv) obligations of any partnership or
unincorporated joint venture in which such Person is a general partner or a joint venturer,
but only to the extent to which there is recourse to such Person for the payment of such
obligations, and (xv) any other obligation for borrowed money which in accordance with Agreement
Accounting Principles would be shown as a liability on the consolidated balance sheet of such
Person.

 

9

Obligations of the Borrower and its Subsidiaries to pay dues to Marine Spill Response
Corporation in an aggregate amount of up to $4,000,000 shall not be deemed to constitute
Indebtedness. Obligations in an aggregate amount not in excess of $7,000,000 at any time owing in
respect of the Borrower’s retention and use of Cook Inlet Spill Prevention and Response, Inc.
(which provides the Borrower with spill-response capabilities) shall not constitute Indebtedness.

          “Indemnified Liabilities”: as defined in Section 10.5.

          “Indemnitee”: as defined in Section 10.5.

          “Information”: as defined in Section 5.11(b).

          “Insolvency”: with respect to any Multiemployer Plan, the condition that such Plan is
insolvent within the meaning of Section 4245 of ERISA.

          “Insolvent”: pertaining to a condition of Insolvency.

          “Interest Payment Date”: (a) as to any Base Rate Loan, the last day of each March,
June, September and December to occur while such Loan is outstanding and the final maturity date of
such Loan, (b) as to any Eurodollar Loan having an Interest Period of three months or shorter, the
last day of such Interest Period, (c) as to any Eurodollar Loan having an Interest Period longer
than three months, each day that is three months, or a whole multiple thereof, after the first day
of such Interest Period and the last day of such Interest Period and (d) as to any Loan, the date
of any repayment or prepayment made in respect thereof.

          “Interest Period”: means, with respect to a Eurodollar Loan, a period of one, two,
three or six months, commencing on a Business Day selected by the Borrower pursuant to this
Agreement. Such Interest Period shall end on but exclude the day which corresponds numerically to
such date one, two, three or six months thereafter, provided, however, that if
there is no such numerically corresponding day in such next, second, third or sixth succeeding
month, such Interest Period shall end on the last Business Day of such next, second, third or sixth
succeeding month. If an Interest Period would otherwise end on a day which is not a Business Day,
such Interest Period shall end on the next succeeding Business Day, provided,
however, that if said next succeeding Business Day falls in a new calendar month, such
Interest Period shall end on the immediately preceding Business Day.

          “Investments”: of a Person means any loan, advance (other than commission, travel and
similar advances to officers and employees made in the ordinary course of business), extension of
credit (other than accounts receivable arising in the ordinary course of business on terms
customary in the trade) or contribution of capital by such Person; stocks, bonds, mutual funds,
partnership interests, notes, debentures or other securities owned by such Person; any deposit
accounts and certificates of deposit owned by such Person; and structured notes, derivative
financial instruments and other similar instruments or contracts owned by such Person.

          “Lenders”: as defined in the preamble hereto.

 

10

          “Letter of Credit”: of a Person means a letter of credit or similar instrument which
is issued upon the application of such Person or upon which such Person is an account party or for
which such Person is in any way liable.

          “Lien”: means any lien (statutory or other), mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance or preference, priority or other security agreement or
preferential arrangement of any kind or nature whatsoever (including, without limitation, the
interest of a vendor or lessor under any conditional sale, Capitalized Lease or other title
retention agreement, and, in the case of stock, stockholders agreements, voting trust agreements
and all similar arrangements).

          “Loan”: as defined in Section 2.1.

          “Loan Documents”: this Agreement and the Notes.

          “Loan Parties”: the Borrower and each Subsidiary of the Borrower that is a party to a
Loan Document.

          “Loan Percentage”: as to any Lender at any time, the percentage which such Lender’s
Commitment then constitutes of the aggregate Commitments (or, at any time after the Closing Date,
the percentage which the aggregate principal amount of such Lender’s Loans then outstanding
constitutes of the aggregate principal amount of the Loans then outstanding).

          “Material Adverse Effect”: means a material adverse effect on (i) the business,
Property, condition (financial or otherwise), operations or results of operations of the Borrower
and its Subsidiaries taken as a whole, (ii) the ability of the Borrower or any Guarantor to perform
its obligations under the Loan Documents, or (iii) the validity or enforceability of the Loan
Documents or the rights or remedies of the Administrative Agent or the Lender thereunder.

          “Material Indebtedness” means any Indebtedness in an outstanding principal amount of
$25,000,000 or more in the aggregate (or the equivalent thereof in any currency other than
Dollars).

          “Material Indebtedness Agreement”: means any agreement under which any Material
Indebtedness was created or is governed or which provides for the incurrence of Indebtedness in an
amount which would constitute Material Indebtedness (whether or not an amount of Indebtedness
constituting Material Indebtedness is outstanding thereunder).

          “Materials of Environmental Concern”: any gasoline or petroleum (including crude oil
or any fraction thereof) or petroleum products, polychlorinated biphenyls, urea-formaldehyde
insulation, asbestos, pollutants, contaminants, radioactivity, and any other substances or
materials of any kind, whether or not any such substance or material is defined as hazardous or
toxic under any Environmental Law, that is regulated pursuant to or could give rise to liability
under any Environmental Law.

          “Maturity Date”: the date which is the 364-day anniversary of the Closing Date.

 

11

          “Multiemployer Plan”: means a multiemployer plan, as defined in Section 4001(a)(3) of
ERISA, which is covered by Title IV of ERISA and to which the Borrower or any member of the
Controlled Group is obligated to make contributions.

          “Net Cash Proceeds”: (a ) in connection with any Asset Sale or any Recovery Event,
the proceeds thereof in the form of cash and Cash Equivalents (including any such proceeds received
by way of deferred payment of principal pursuant to a note or installment receivable or purchase
price adjustment receivable or otherwise, but only as and when received) of such Asset Sale or
Recovery Event, net of attorneys’ fees, accountants’ fees, investment banking fees, amounts
required to be applied to the repayment of Indebtedness secured by a Lien expressly permitted
hereunder on any asset which is the subject of such Asset Sale or Recovery Event and other
customary fees and expenses actually incurred in connection therewith, net of taxes paid or
reasonably estimated to be payable as a result thereof (after taking into account any available tax
credits or deductions and any tax sharing arrangements) and net of the amount of reserves
established by the Borrower in good faith for adjustments in respect of the sale price of such
asset or assets in accordance with US GAAP, and (b) in connection with any issuance or sale of
equity securities or debt securities or instruments or the incurrence of loans, the cash proceeds
received from such issuance or incurrence, net of attorneys’ fees, investment banking fees,
accountants’ fees, underwriting discounts and commissions and other customary fees and expenses
actually incurred in connection therewith.

          “Non-Excluded Taxes”: as defined in Section 2.14(a).

          “Net Mark-to-Market Exposure”: of a Person means, as of any date of determination, the
excess (if any) of all unrealized losses over all unrealized profits of such Person arising from
Rate Management Transactions. “Unrealized losses” means the fair market value of the cost
to such Person of replacing such Rate Management Transaction as of the date of determination
(assuming the Rate Management Transaction were to be terminated as of that date), and
“unrealized profits” means the fair market value of the gain to such Person of replacing
such Rate Management Transaction as of the date of determination (assuming such Rate Management
Transaction were to be terminated as of that date).

          “Non-U.S. Lender”: as defined in Section 2.14(d).

          “Note”: as defined in Section 2.3.

          “Obligations”: means all Loans, advances, debts, liabilities, obligations, covenants
and duties owing by the Borrower to the Administrative Agent, any Lender, the Lead Arrangers, any
affiliate of the Administrative Agent, any Lender, or the Lead Arrangers, or any indemnitee under
the provisions of Section 10.5 or any other provisions of the Loan Documents, in each case of any
kind or nature, present or future, arising under this Agreement or any other Loan Document, whether
or not evidenced by any note, guaranty or other instrument, whether or not for the payment of
money, whether arising by reason of an extension of credit, loan, foreign exchange risk, guaranty,
indemnification, or in any other manner, whether direct or indirect (including those acquired by
assignment), absolute or contingent, due or to become due, now existing or hereafter arising and
however acquired. The term includes, without limitation, all interest, charges, expenses, fees,
attorneys’ fees and disbursements, paralegals’ fees (in each case whether or not

 

12

allowed), and any other sum chargeable to the Borrower or any of its Subsidiaries under this
Agreement or any other Loan Document.

          “Off-Balance Sheet Liability”: of a Person means the principal component of (i) any
repurchase obligation or liability of such Person with respect to Receivables sold by such Person,
(ii) any liability under any Sale and Leaseback Transaction which is not a Capitalized Lease, (iii)
any liability under any so-called “synthetic lease” or “tax ownership operating lease” transaction
entered into by such Person, (iv) any Receivables Purchase Facility, or (v) any obligation arising
with respect to any other transaction which is the functional equivalent of or takes the place of
borrowing but which does not constitute a liability on the consolidated balance sheets of such
Person, but excluding from this clause (v) all Operating Leases.

          “Operating Lease”: of a Person means any lease of Property (other than a Capitalized
Lease) by such Person as lessee which has an original term (including any required renewals and any
renewals effective at the option of the lessor) of one year or more.

          “Other Taxes”: any and 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 from
the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any
other Loan Document.

          “Participant”: as defined in Section 10.6(b).

          “Payment Office”: the office specified from time to time by the Administrative Agent
as its payment office by notice to the Borrower and the Lenders.

          “PBGC”: means the Pension Benefit Guaranty Corporation, or any successor thereto.

          “Person”: means any natural person, corporation, firm, joint venture, partnership,
limited liability company, association, enterprise, trust or other entity or organization, or any
government or political subdivision or any agency, department or instrumentality thereof.

          “Petroleum Inventory”: means inventory consisting of crude oil, petroleum, refined
petroleum products, byproducts and intermediate feedstocks, and other energy-related commodities,
including, without limitation, blend components commonly used in the petroleum industry to improve
characteristics of, or meet governmental or customer specifications for, petroleum or refined
petroleum products, all of which inventory shall be valued at market.

          “Plan”: means an employee pension benefit plan, excluding any Multiemployer Plan,
which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412
of the Code as to which the Borrower or any member of the Controlled Group, may have any liability.

          “Prime Rate”: the prime lending rate as set forth on the British Banking Association
Telerate Page 5 (or such other comparable publicly available page as may, in the reasonable opinion
of the Administrative Agent after notice to the Borrower, replace such page for the purpose of
displaying such rate if such rate no longer appears on the British Bankers Association

 

13

Telerate page 5), as in effect from time to time. The Prime Rate is a reference rate and does
not necessarily represent the lowest or best rate actually available. Any change in the Base Rate
due to a change in the Prime Rate or the Federal Funds Effective Rate shall be effective as of the
opening of business on the effective day of such change in the Prime Rate or the Federal Funds
Effective Rate, respectively.

          “Pro Forma Balance Sheets”: as defined in Section 5.9.

          “Projections”: as defined in Section 5.11(b).

          “Property”: of a Person means any and all property, whether real, personal, tangible,
intangible, or mixed, of such Person, or other assets owned, leased or operated by such Person.

          “Rate Management Transaction”: means any transaction (including an agreement with
respect thereto) now existing or hereafter entered by the Borrower or a Subsidiary which is a rate
swap, basis swap, forward rate transaction, equity or equity index swap, equity or equity index
option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor
transaction, collar transaction, forward transaction, currency swap transaction, cross-currency
rate swap transaction, currency option or any other similar transaction (including any option with
respect to any of these transactions) or any combination thereof, whether linked to one or more
interest rates, foreign currencies, or equity prices.

          “Receivable(s)”: means and includes any and all of the Borrower’s and its
Subsidiaries’ presently existing and hereafter arising or acquired accounts, accounts receivable,
and all present and future rights of the Borrower and its Subsidiaries to payment for goods sold or
leased or for services rendered (except those evidenced by instruments or chattel paper), whether
or not they have been earned by performance, and all rights in and to any merchandise or goods
which any of the same may represent, and all rights, title, security and guaranties with respect to
each of the foregoing, including, without limitation, any right of stoppage in transit.

          “Receivables Purchase Documents”: means any series of receivables purchase or sale
agreements generally consistent with terms contained in comparable structured finance transactions
pursuant to which the Borrower or any of its Subsidiaries, in their respective capacities as
sellers or transferors of any Receivables, sell or transfer to SPVs all or a portion of their
respective right, title and interest in and to certain Receivables for further sale or transfer (or
granting of Liens to other purchasers of or investors in such assets or interests therein (and the
other documents, instruments and agreements executed in connection therewith), as any such
agreements may be amended, restated, supplemented or otherwise modified from time to time, or any
replacement or substitution therefor.

          “Receivables Purchase Facility”: means any securitization facility made available to
the Borrower or any of its Subsidiaries, pursuant to which Receivables of the Borrower or any of
its Subsidiaries are transferred to one or more SPVs, and thereafter to certain investors, pursuant
to the terms and conditions of the Receivables Purchase Documents.

 

14

          “Recovery Event”: any settlement of or payment in respect of any property or casualty
insurance claim or any condemnation proceeding relating to any asset of the Borrower or any of its
Subsidiaries.

          “Refinancing Indebtedness”: means any Indebtedness permitted under this Agreement that
exists (with respect to any amendments, modifications or supplements thereof) or that is incurred
to refund, refinance, replace, exchange, renew, repay, extend, modify, amend or supplement
(including pursuant to any defeasance or discharge mechanism) (collectively, “refinance”,
“refinances” and “refinanced” shall have a correlative meaning) any other specified Indebtedness
permitted under this Agreement, including any Indebtedness that refinances Refinancing
Indebtedness, provided, however, that:

     (i) if the Stated Maturity (as such term is hereinafter defined) of the Indebtedness being
refinanced is earlier than the five year anniversary of the date hereof, the Refinancing
Indebtedness has a Stated Maturity no earlier than the Stated Maturity of the Indebtedness being
refinanced, or if the Stated Maturity of the Indebtedness is being refinanced is later than the
five year anniversary of the date hereof, the Refinancing Indebtedness has a Stated Maturity that
is at least 91 days later than such five year anniversary;

     (ii) the Refinancing Indebtedness has an Average Life (as such term is hereinafter defined) at
the time such Refinancing Indebtedness is incurred equal to or greater than the Average Life of the
Indebtedness being refinanced;

     (iii) such Refinancing Indebtedness is incurred in an aggregate principal amount (or if issued
with original issue discount, an aggregate issue price) that is equal to or less than the sum of
the aggregate principal amount (or if issued with original issue discount, the aggregate accreted
value) then outstanding of the Indebtedness being refinanced (plus, without duplication, any
additional Indebtedness incurred to pay interest or premiums required by instruments governing such
existing Indebtedness and fees incurred in connection therewith);

     (iv) after giving effect to the incurrence of such Refinancing Indebtedness, no Default or
Unmatured Default would exist hereunder;

     (v) the obligor(s) of such Refinancing Indebtedness shall not be materially different than the
obligors of the Indebtedness being refinanced; and

     (vi) the terms and conditions of such Refinancing Indebtedness shall be no less favorable on
the whole in any material respect than the terms and conditions of the Indebtedness being
refinanced;

     As used in this definition the term “Stated Maturity” means, with respect to any Indebtedness,
the date specified in the documents or instruments evidencing such Indebtedness as the fixed date
on which the payment of principal of such Indebtedness is due and payable, including pursuant to
any mandatory prepayment or redemption provision, but shall not include any contingent obligations
to repay, prepay, redeem or repurchase any such principal prior to the date originally scheduled
for the payment thereof. As used in this definition, the term “Average Life” means, as of the date
of determination, with respect to any Indebtedness, the quotient

 

15

obtained by dividing (a) the sum of the products of the numbers of years from the date of
determination to the dates of each successive scheduled principal payment of such Indebtedness
multiplied by the amount of such payment by (b) the sum of all such payments. For the avoidance of
doubt, the Administrative Agent and the Lenders agree that all Indebtedness incurred in accordance
with Section 2.6(a) is, and shall otherwise be deemed to be “Refinancing Indebtedness” of the
Indebtedness incurred in connection with and pursuant to this Agreement.

          “Register”: as defined in Section 10.6(d).

          “Regulation D”: means Regulation D of the Board of Governors of the Federal Reserve
System as from time to time in effect and any successor thereto or other regulation or official
interpretation of said Board of Governors relating to reserve requirements applicable to member
banks of the Federal Reserve System.

          “Regulation U”: means Regulation U of the Board of Governors of the Federal Reserve
System as from time to time in effect and any successor or other regulation or official
interpretation of said Board of Governors relating to the extension of credit by banks, non-banks
and non-broker lenders for the purpose of purchasing or carrying margin stocks applicable to member
banks of the Federal Reserve System.

          “Reinvestment Deferred Amount”: with respect to any Reinvestment Event, the aggregate
Net Cash Proceeds received by the Borrower or any of its Subsidiaries in connection therewith that
are not applied to prepay the Loans pursuant to Section 2.6(b) as a result of the delivery of a
Reinvestment Notice.

          “Reinvestment Event”: any Asset Sale or Recovery Event in respect of which the
Borrower has delivered a Reinvestment Notice.

          “Reinvestment Notice”: a written notice executed by a Authorized Officer stating that
no Default or Event of Default has occurred and is continuing and that the Borrower (directly or
indirectly through a Subsidiary) intends and expects to use all or a specified portion of the Net
Cash Proceeds of an Asset Sale or Recovery Event to acquire, construct, improve, develop or repair
assets useful in its business or acquire all of the Capital Stock in one or more Persons owning or
constructing any such assets.

          “Reinvestment Prepayment Amount”: with respect to any Reinvestment Event, the
Reinvestment Deferred Amount relating thereto less any amount expended prior to the
relevant Reinvestment Prepayment Date to acquire assets useful in the Borrower’s business.

          “Reinvestment Prepayment Date”: with respect to any Reinvestment Event, the earlier
of (a) the date occurring six months after such Reinvestment Event and (b) the date on which the
Borrower shall have determined not to, or shall have otherwise ceased to, acquire, construct,
improve, develop or repair assets useful in the Borrower’s business or acquire all of the Capital
Stock in one or more Persons owning or constructing any such assets with all or any portion of the
relevant Reinvestment Deferred Amount, in each case if such date is not a Business Day, then on the
next following date that is a Business Day.

 

16

          “Related Fund”: with respect to any Lender, any fund that (x) invests in commercial
loans and (y) is managed or advised by the same investment advisor as such Lender, by such Lender
or an Affiliate of such Lender.

          “Reportable Event”: means a reportable event as defined in Section 4043 of ERISA and
the regulations issued under such section, with respect to a Plan subject to Title IV of ERISA,
excluding, however, such events as to which the PBGC has by regulation waived the requirement of
Section 4043(a) of ERISA that it be notified within 30 days of the occurrence of such event,
provided, however, that a failure to meet the minimum funding standard of Section
412 of the Code and of Section 302 of ERISA shall be a Reportable Event regardless of the issuance
of any such waiver of the notice requirement in accordance with either Section 4043(a) of ERISA or
Section 412(d) of the Code.

          “Required Lenders”: at any time, the holders of (a) until the Closing Date, the
Commitments and (b) thereafter, more than 50% of the aggregate unpaid principal amount of the Loans
then outstanding.

          “Requirement of Law”: as to any Person, the Certificate of Incorporation and By-Laws
or other organizational or governing documents of such Person, and any law, treaty, rule or
regulation or determination of an arbitrator or a court or other Governmental Authority, in each
case applicable to or binding upon such Person or any of its Property or to which such Person or
any of its Property is subject.

          “Reserve Requirement”: means, with respect to an Interest Period, the maximum
aggregate reserve requirement (including all basic, supplemental, marginal and other reserves)
which is imposed under Regulation D on “Eurocurrency liabilities” (as defined in Regulation D).

          “Restricted Payments”: as defined in Section 6.6.

          “Retail Property”: means Property of the Borrower or any Subsidiary owned in
connection with the sale of motor fuels and convenience products and services to consumers in the
retail market.

          “Revolving Credit Facility”: the revolving credit facility to be provided under the
Fourth Amended and Restated Credit Agreement, to be entered into among Tesoro Corporation, as
borrower, JPMorgan Chase Bank, National Association, as administrative agent and collateral agent,
and Lehman Commercial Paper Inc., as syndication agent, in connection with the financing of the
Shell Acquisition.

          “Revolving Credit Facility Documentation”: collectively, the Revolving Credit
Facility and all schedules, exhibits, annexes and amendments thereto and all side letters and
agreements affecting the terms thereof or entered into in connection therewith, in each case, as
amended, supplemented or otherwise modified from time to time.

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

 

17

          “Sale and Leaseback Transaction”: means any sale or other transfer of Property by any
Person with the intent to lease such Property as lessee.

          “SEC”: the Securities and Exchange Commission (or successors thereto or an analogous
Governmental Authority).

          “Senior Notes Indentures”: means, collectively (i) the indenture governing the
Borrower’s 6 1/4% Senior Notes due 2012, dated as of November 16, 2005, between the Borrower, the
guarantors named therein, and U.S. Bank National Association, as trustee; and (ii) the indenture
governing the Borrower’s 6 5/8% Senior Notes due 2015, dated as of November 16, 2005, between the
Borrower, the guarantors named therein, and U.S. Bank National Association, as trustee.

          “Shell Acquired Assets”: as defined in the recitals hereto.

          “Shell Acquisition”: as defined in the recitals hereto.

          “Shell Acquisition Agreements”: (i) that certain Asset Purchase Agreement, dated as
of January 29, 2007, by and between Equilon Enterprises LLC d/b/a Shell Oil Products US as “Seller”
and Tesoro Refining and Marketing Company as “Buyer” for the purchase and sale of the “Shell Los
Angeles Refinery” and other related assets described therein located in Los Angeles, California and
Wilmington, California, (ii) that certain Asset Purchase and Sale Agreement, dated as of January
29, 2007, by and between Equilon Enterprises LLC d/b/a Shell Oil Products US as “Seller” and Tesoro
Refining and Marketing Company as “Buyer” for the purchase and sale of certain retail services
stations in and around the state of California and other related assets as described therein, and
(iii) any and all amendments, schedules or other documents related thereto.

          “Shell Acquisition Documentation”: collectively, the Shell Acquisition Agreements and
all schedules, exhibits, annexes and amendments thereto and all side letters and agreements
affecting the terms thereof or entered into in connection therewith, in each case, as amended,
supplemented or otherwise modified from time to time.

          “Single Employer Plan”: means a Plan maintained by the Borrower or any member of the
Controlled Group for employees of the Borrower or any member of the Controlled Group.

          “Solvent”: with respect to any Person, as of any date of determination, (a) the
amount of the “present fair saleable value” of the assets of such Person will, as of such date,
exceed the amount of all “liabilities of such Person, contingent or otherwise”, as of such date, as
such quoted terms are determined in accordance with applicable federal and state laws governing
determinations of the insolvency of debtors, (b) the present fair saleable value of the assets of
such Person will, as of such date, be greater than the amount that will be required to pay the
liability of such Person on its debts as such debts become absolute and matured, (c) such Person
will not have, as of such date, an unreasonably small amount of capital with which to conduct its
business, and (d) such Person will be able to pay its debts as they mature. For purposes of this
definition, (i) “debt” means liability on a “claim”, and (ii) “claim” means any (x) right to
payment, whether or not such a right is reduced to judgment, liquidated, unliquidated, fixed,
contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured or (y)
right to an equitable remedy for breach of performance if such breach gives rise to a right to
payment, whether or not

 

18

such right to an equitable remedy is reduced to judgment, fixed, contingent, matured or
unmatured, disputed, undisputed, secured or unsecured.

          “SPV”: means any special purpose entity established for the purpose of purchasing
Receivables in connection with a Receivables securitization transaction permitted under the terms
of the Revolving Credit Facility (as in effect on the date hereof).

          “Subsidiary”: of a Person means (i) any corporation more than 50% of the outstanding
securities having ordinary voting power of which shall at the time be owned or controlled, directly
or indirectly, by such Person or by one or more of its Subsidiaries or by such Person and one or
more of its Subsidiaries, or (ii) any partnership, limited liability company, association, joint
venture or similar business organization more than 50% of the ownership interests having ordinary
voting power of which shall at the time be so owned or controlled. Unless otherwise expressly
provided, all references herein to a “Subsidiary” shall mean a Subsidiary of the Borrower and no
Excluded Subsidiary shall constitute a Subsidiary of the Borrower.

          “Subordinated Indebtedness”: means any Indebtedness the payment of which is
subordinated to the payment of the Obligations to the reasonable written satisfaction of the
Administrative Agent and the Required Lenders.

          “Substantial Portion”: means, with respect to the Property of the Borrower and its
Subsidiaries, Property which represents more than 15% of the consolidated assets of the Borrower
and its Subsidiaries or property which is responsible for more than 15% of the consolidated net
sales or of the Consolidated Net Income of the Borrower and its Subsidiaries, in each case, as
would be shown in the consolidated financial statements of the Borrower and its Subsidiaries, as at
the end of the four fiscal quarter period ending with the fiscal quarter immediately prior to the
fiscal quarter in which such determination is made (or if financial statements have not been
delivered hereunder for that fiscal quarter which ends the four fiscal quarter period, then the
financial statements delivered hereunder for the quarter ending immediately prior to that quarter).

          “Syndication Agent”: as defined in the preamble hereto.

          “Transferee”: as defined in Section 10.14.

          “Type”: as to any Loan, its nature as a Base Rate Loan or a Eurodollar Loan.

          “Unfunded Liabilities”; means the amount, if any, by which the current liability as
shown on line 1d(2)(a) of the most recently filed Schedule B of Form 5500 under each Single
Employer Plan subject to Title IV of ERISA exceeds the fair market value of all such Plan’s assets
allocable to such benefits, all determined as of the then most recent valuation date for such Plan
for which a Schedule B is available.

          “Unmatured Default”: means an event which but for the lapse of time or the giving of
notice, or both, would constitute a Default.

          “US GAAP”: means generally accepted accounting principles as in effect in the United
States from time to time.

 

19

          “Wholly Owned Subsidiary”: of a Person means (i) any Subsidiary all of the
outstanding voting securities of which shall at the time be owned or controlled, directly or
indirectly, by such Person or one or more Wholly-Owned Subsidiaries of such Person, or by such
Person and one or more Wholly-Owned Subsidiaries of such Person, or (ii) any partnership, limited
liability company, association, joint venture or similar business organization 100% of the
ownership interests having ordinary voting power of which shall at the time be so owned or
controlled.

          1.2 Other Definitional Provisions. (a) Unless otherwise specified therein, all terms
defined in this Agreement shall have the defined meanings when used in the other Loan Documents or
any certificate or other document made or delivered pursuant hereto or thereto.

          (b) As used herein and in the other Loan Documents, and any certificate or other document made
or delivered pursuant hereto or thereto, accounting terms relating to the Borrower and its
Subsidiaries not defined in Section 1.1 and accounting terms partly defined in Section 1.1, to the
extent not defined, shall have the respective meanings given to them under US GAAP.

          (c) The words “hereof”, “herein” and “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement, and Section, Schedule and Exhibit references are to this Agreement unless otherwise
specified.

          (d) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

          (e) All calculations of financial ratios set forth in Section 6.1 shall be calculated to the
same number of decimal places as the relevant ratios are expressed in and shall be rounded upward
if the number in the decimal place immediately following the last calculated decimal place is five
or greater. For example, if the relevant ratio is to be calculated to the hundredth decimal place
and the calculation of the ratio is 5.126, the ratio will be rounded up to 5.13.

SECTION 2. AMOUNT AND TERMS OF COMMITMENTS

          2.1 Commitments. Subject to the terms and conditions hereof, each Lender severally
agrees to make term loans (each, a “Loan”) to the Borrower in a single funding on the
Closing Date in the principal amount equal to the amount of the Commitment of such Lender. The
Loans may from time to time be Eurodollar Loans or Base Rate Loans, as determined by the Borrower
and notified to the Administrative Agent in accordance with Sections 2.2 and 2.7. Loans that are
repaid may not be reborrowed.

          2.2 Procedure for Borrowing. The Borrower shall deliver to the Administrative Agent a
Borrowing Notice (which Borrowing Notice must be received by the Administrative Agent prior to
10:00 A.M., New
York City time, one Business Day prior to the anticipated Closing Date) requesting that the
Lenders make the Loans on the Closing Date. The Loans shall initially be Base Rate Loans or
Eurodollar Loans, as specified in the Borrowing Notice. Upon receipt of such Borrowing Notice, the
Administrative Agent shall promptly notify each Lender thereof. Not later than 12:00 Noon, New
York City time, on the Closing Date each Lender shall make available to

 

20

the Borrower (or its
designee specified in the Borrowing Notice) an amount in immediately available funds equal to the
Loan or Loans to be made by such Lender.

          2.3 Repayment of Loans; Evidence of Debt. (a) The Borrower hereby unconditionally
promises to pay to the Administrative Agent for the account of the appropriate Lender, (i) the
outstanding principal amount of each Loan of such Lender at the Maturity Date (or on such earlier
date on which the Loans become due and payable pursuant to Section 7). The Borrower hereby further
agrees to pay interest on the outstanding principal amount of the Loans from time to time
outstanding from the date hereof until payment in full thereof at the rates per annum, and on the
dates, set forth in Section 2.9.

          (b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing indebtedness of the Borrower to such Lender resulting from each Loan of such Lender from
time to time, including the amounts of principal and interest payable and paid to such Lender from
time to time under this Agreement.

          (c) The Administrative Agent, on behalf of the Borrower, shall maintain the Register pursuant
to Section 10.6(d), and a subaccount therein for each Lender, in which shall be recorded (i) the
amount of each Loan made hereunder and any Note evidencing such Loan, the Type of such Loan and
each Interest Period applicable thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable from the Borrower to each Lender hereunder and (iii) both the
amount of any sum received by the Administrative Agent hereunder from the Borrower and each
Lender’s share thereof.

          (d) The entries made in the Register and the accounts of each Lender maintained pursuant to
Section 2.3(b) shall, to the extent permitted by applicable law, be prima facie
evidence of the existence and amounts of the obligations of the Borrower therein recorded;
provided, however, that the failure of any Lender or the Administrative Agent to
maintain the Register or any such account, or any error therein, shall not in any manner affect the
obligation of the Borrower to repay (with applicable interest) the Loans made to the Borrower by
such Lender in accordance with the terms of this Agreement.

          (e) The Borrower agrees that, upon the request to the Administrative Agent by any Lender, the
Borrower will promptly execute and deliver to such Lender a promissory note of the Borrower
evidencing any Loans of such Lender, substantially in the form of Exhibit E (a “Note”),
with appropriate insertions as to date and principal amount; provided, that delivery of
Notes shall not be a condition precedent to the occurrence of the Closing Date or the making of the
Loans.

          2.4 Fees(a) . The Borrower agrees to pay to the Administrative Agent the fees in the
amounts and on the dates from time to time agreed to in writing by the Borrower, the Administrative
Agent and/or the Arrangers.

          2.5 Optional Prepayments. The Borrower may at any time and from time to time prepay
the Loans, in whole or in part, without premium or penalty (except as otherwise provided herein),
upon irrevocable notice delivered to the Administrative Agent no later than 11:00 A.M., New York
City time, three Business Days prior thereto in the case of Eurodollar Loans and no later than
11:00 A.M., New York City time, one Business Day prior thereto in the

 

21

case of Base Rate Loans,
which notice shall specify the date and amount of such prepayment and whether such prepayment is of
Eurodollar Loans or Base Rate Loans; provided, that if a Eurodollar Loan is prepaid on any
day other than the last day of the Interest Period applicable thereto, the Borrower shall also pay
any amounts owing pursuant to Section 2.15. Upon receipt of any such notice the Administrative
Agent shall promptly notify each relevant Lender thereof. If any such notice is given, the amount
specified in such notice shall be due and payable on the date specified therein, together with
accrued interest to such date on the amount prepaid. Partial prepayments of Loans shall be in an
aggregate principal amount of $500,000 or a whole multiple thereof.

          2.6 Mandatory Prepayments and Commitment Reductions. (a) Unless the Required Lenders
shall otherwise agree, if any Capital Stock shall be issued, or Indebtedness incurred pursuant to
Section 6.2(h), after the Closing Date by the Borrower or any of its Subsidiaries, then on or
before the date that is three (3) Business Days after the date of receipt by the Borrower or the
applicable Subsidiary of the related Net Cash Proceeds, the Loans shall be prepaid by an amount
equal to the amount of the Net Cash Proceeds received by the Borrower or the applicable Subsidiary
from such issuance or incurrence. The provisions of this Section do not constitute a consent to
the incurrence of any Indebtedness by the Borrower or any of its Subsidiaries not otherwise
permitted hereunder.

          (b) Unless the Required Lenders shall otherwise agree, if on any date after the Closing Date
the Borrower or any of its Subsidiaries shall receive Net Cash Proceeds in excess of $2,500,000
from any Asset Sale or related Asset Sales (other than Asset Sales in accordance with clauses (a),
(b), (c) or (d) of Section 6.5) or any Recovery Event or related Recovery Events then, unless a
Reinvestment Notice shall be delivered in respect thereof, on or before the date that is three (3)
Business Days after the date of receipt by the Borrower or such Subsidiary of such Net Cash
Proceeds, the Loans shall be prepaid by an amount equal to the amount of such Net Cash Proceeds
less the amount (if any) of such Net Cash Proceeds actually used to make a prepayment
pursuant to Section 2.2.2 of the Revolving Credit Facility Documentation (as in effect on the date
hereof); provided, that, notwithstanding the foregoing, (i) up to $100,000,000 in aggregate
Net Cash Proceeds of Asset Sales (other than an Asset Sale of the Shell Acquired Assets) not
subject to a Reinvestment Notice may be excluded from the foregoing requirement and (ii) on each
Reinvestment Prepayment Date the Loans shall be prepaid by an amount equal to the Reinvestment
Prepayment Amount with respect to the relevant Reinvestment Event. The provisions of this Section
do not constitute a consent to the consummation of any Disposition not permitted by Section 6.5.

          2.7 Conversion and Continuation Options. (a) The Borrower may elect from time to
time to convert Eurodollar Loans to Base Rate Loans by giving the Administrative Agent at least two
Business Days’ prior irrevocable notice of such election, provided that any such conversion
of Eurodollar Loans may be made only on the last day of an Interest Period with respect thereto.
The Borrower may elect from time to time to convert Base Rate Loans to Eurodollar Loans by giving
the Administrative Agent at least three Business Days’ prior irrevocable notice of such election
(which notice shall specify the length of the initial Interest Period therefor), provided
that no Base Rate Loan may be converted into a Eurodollar Loan (i) when any Event of Default has
occurred and is continuing and the Administrative Agent has, or the Required Lenders have,
determined in its or their sole discretion not to permit such conversions

 

22

or (ii) after the date
that is one month prior to the Maturity Date. Upon receipt of any such notice the Administrative
Agent shall promptly notify each relevant Lender thereof.

          (b) The Borrower may elect to continue any Eurodollar Loan as such upon the expiration of the
then current Interest Period with respect thereto by giving irrevocable notice to the
Administrative Agent, in accordance with the applicable provisions of the term “Interest Period”
set forth in Section 1.1, of the length of the next Interest Period to be applicable to such Loan,
provided that no Eurodollar Loan may be continued as such (i) when any Event of Default has
occurred and is continuing and the Administrative Agent has, or the Required Lenders have,
determined in its or their sole discretion not to permit such continuations or (ii) after the date
that is one month prior to the Maturity Date, and provided, further, that if the
Borrower shall fail to give any required notice as described above in this paragraph or if such
continuation is not permitted pursuant to the preceding proviso, such Loans shall be converted
automatically to Base Rate Loans on the last day of such then expiring Interest Period. Upon
receipt of any such notice the Administrative Agent shall promptly notify each relevant Lender
thereof.

          2.8 Minimum Amounts and Maximum Number of Eurodollar Tranches. Notwithstanding
anything to the contrary in this Agreement, all borrowings, conversions, continuations and optional
prepayments of Eurodollar Loans and all selections of Interest Periods shall be in such amounts and
be made pursuant to such elections so that, (a) after giving effect thereto, the aggregate
principal amount of the Eurodollar Loans comprising each Eurodollar Tranche shall be equal to
$5,000,000 or a whole multiple of $1,000,000 in excess thereof and (b) no more than ten Eurodollar
Tranches shall be outstanding at any one time.

          2.9 Interest Rates and Payment Dates. (a) Each Eurodollar Loan shall bear interest
for each day during each Interest Period with respect thereto at a rate per annum equal to the
Eurodollar Rate determined for such day plus the Applicable Margin in effect for such day.

          (b) Each Base Rate Loan shall bear interest for each day on which it is outstanding at a rate
per annum equal to the Base Rate in effect for such day plus the Applicable Margin in
effect for such day.

          (c) Upon the occurrence and during the continuation of any Event of Default, all outstanding
Loans (whether or not overdue) (to the extent legally permitted) shall bear interest at a rate per
annum that is equal to the rate that would otherwise be applicable thereto pursuant to the
foregoing provisions of this Section plus 2%, from the date of such Event of Default until
such amount is paid in full (after as well as before judgment).

          (d) Interest shall be payable in arrears on each Interest Payment Date, provided that
interest accruing pursuant to paragraph (c) of this Section shall be payable from time to time on
demand.

          2.10 Computation of Interest and Fees. (a) Interest, fees and commissions payable
pursuant hereto shall be calculated on the basis of a 360-day year for the actual days elapsed,
except that, with respect to Base Rate Loans on which interest is calculated on the basis of the
Prime Rate, the interest thereon shall be calculated on the basis of a 365- (or 366-, as the case
may be) day year for the actual days elapsed. The Administrative Agent shall as soon as

 

23

practicable notify the Borrower and the relevant Lenders of each determination of a Eurodollar
Rate. Any change in the interest rate on a Loan resulting from a change in the Base Rate or the
Eurocurrency Reserve Requirements shall become effective as of the opening of business on the day
on which such change becomes effective. The Administrative Agent shall as soon as practicable
notify the Borrower and the relevant Lenders of the effective date and the amount of each such
change in interest rate.

     (b) Each determination of an interest rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and the Lenders in the
absence of manifest error. The Administrative Agent shall, at the request of the Borrower, deliver
to the Borrower a statement showing the quotations used by the Administrative Agent in determining
any interest rate pursuant to Section 2.9(a).

     2.11 Inability to Determine Interest Rate. If prior to the first day of any Interest
Period:

     (a) the Administrative Agent shall have determined (which determination shall be
conclusive and binding upon the Borrower) that, by reason of circumstances affecting the
relevant market, adequate and reasonable means do not exist for ascertaining the Eurodollar
Rate for such Interest Period, or

     (b) the Administrative Agent shall have received notice from the Required Lenders that
the Eurodollar Rate determined or to be determined for such Interest Period will not
adequately and fairly reflect the cost to such Lenders (as conclusively certified by such
Lenders) of making or maintaining their affected Loans during such Interest Period,

the Administrative Agent shall give telecopy or telephonic notice thereof to the Borrower and the
relevant Lenders as soon as practicable thereafter. If such notice is given (x) any Eurodollar
Loans requested to be made on the first day of such Interest Period shall be made as Base Rate
Loans, (y) any Loans that were to have been converted on the first day of such Interest Period to
Eurodollar Loans shall be continued as Base Rate Loans and (z) any outstanding Eurodollar Loans
shall be converted, on the last day of the then current Interest Period with respect thereto, to
Base Rate Loans. Until such notice has been withdrawn by the Administrative Agent, no further
Eurodollar Loans shall be made or continued as such, nor shall the Borrower have the right to
convert Loans to Eurodollar Loans.

          2.12 Pro Rata Treatment and Payments. (a) Each borrowing by the Borrower from the
Lenders hereunder and any reduction of the Commitments of the Lenders, shall be made pro
rata according to the respective Loan Percentages of the relevant Lenders. Each payment of
interest in respect of the Loans and each payment in respect of fees payable hereunder shall be
applied to the amounts of such obligations owing to the Lenders pro rata according
to the respective amounts then due and owing to the Lenders.

          (b) Each payment (including each prepayment) on account of principal of the Loans outstanding
shall be allocated among the Lenders holding such Loans pro rata based on the
principal amount of such Loans held by such Lenders. Amounts prepaid on account of the Loans may
not be reborrowed.

 

24

          (c) The application of any payment of Loans (including optional and mandatory prepayments)
shall be made, first, to Base Rate Loans and, second, to Eurodollar Loans. Each
payment of the Loans shall be accompanied by accrued interest to the date of such payment on the
amount paid.

          (d) All payments (including prepayments) to be made by the Borrower hereunder, whether on
account of principal, interest, fees or otherwise, shall be made without setoff or counterclaim and
shall be made prior to 12:00 Noon, New York City time, on the due date thereof to the
Administrative Agent, for the account of the relevant Lenders, at the Payment Office, in Dollars
and in immediately available funds. Any payment made by the Borrower after 12:00 Noon, New York
City time, on any Business Day shall be deemed to have been on the next following Business Day. If
any payment hereunder (other than payments on the Eurodollar Loans) becomes due and payable on a
day other than a Business Day, such payment shall be extended to the next succeeding Business Day.
If any payment on a Eurodollar Loan becomes due and payable on a day other than a Business Day, the
maturity thereof shall be extended to the next succeeding Business Day unless the result of such
extension would be to extend such payment into another calendar month, in which event such payment
shall be made on the immediately preceding Business Day. In the case of any extension of any
payment of principal pursuant to the preceding two sentences, interest thereon shall be payable at
the then applicable rate during such extension.

          (e) Unless the Administrative Agent shall have been notified in writing by any Lender prior to
a borrowing that such Lender will not make the amount that would constitute its share of such
borrowing available to the Administrative Agent, the Administrative Agent may assume that such
Lender is making such amount available to the Administrative Agent, and the Administrative Agent
may, in reliance upon such assumption, make available a corresponding amount. If such amount is
not made available to the Administrative Agent by the required time on the Borrowing Date therefor,
such Lender shall pay to the Administrative Agent, on demand, such amount with interest thereon at
a rate equal to the greater of (i) the Federal Funds Effective Rate
and (ii) a rate determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation, for the period until such Lender makes such amount immediately
available to the Administrative Agent. A certificate of the Administrative Agent submitted to any
Lender with respect to any amounts owing under this paragraph shall be conclusive in the absence of
manifest error. If such Lender’s share of such borrowing made available by the Administrative
Agent is not made available to the Administrative Agent by such Lender within three Business Days
after such Borrowing Date, the Administrative Agent shall also be entitled to recover such amount
with interest thereon at the rate per annum applicable to Base Rate Loans, on demand, from the
Borrower.

          (f) Unless the Administrative Agent shall have been notified in writing by the Borrower prior
to the date of any payment due to be made by the Borrower hereunder that the Borrower will not make
such payment to the Administrative Agent, the Administrative Agent may assume that the Borrower is
making such payment, and the Administrative Agent may, but shall not be required to, in reliance
upon such assumption, make available to the Lenders their respective pro rata
shares of a corresponding amount. If such payment is not made to the Administrative Agent by the
Borrower within three Business Days after such due date, the Administrative Agent shall be entitled
to recover, on demand, from each Lender to which any amount which was made available pursuant to
the preceding sentence, such amount with interest

 

25

thereon at the rate per annum equal to the daily
average Federal Funds Effective Rate. Nothing herein shall be deemed to limit the rights of the
Administrative Agent or any Lender against the Borrower.

          (g) Upon receipt by the Administrative Agent of payments on behalf of Lenders, the
Administrative Agent shall promptly distribute such payments to the Lender or Lenders entitled
thereto, in like funds as received by the Administrative Agent.

          2.13 Requirements of Law. (a) If the adoption of or any change in any Requirement of
Law or in the interpretation or application thereof or compliance by any Lender with any request or
directive (whether or not having the force of law) from any central bank or other Governmental
Authority made subsequent to the date hereof:

               (i) shall subject any Lender to any tax of any kind whatsoever with respect to
this Agreement or any Eurodollar Loan made by it, or change the basis of taxation of
payments to such Lender in respect thereof (except for Non-Excluded Taxes covered by
Section 2.14 and changes in the rate of tax on the overall net income of such
Lender);

               (ii) shall impose, modify or hold applicable any reserve, special deposit,
compulsory loan or similar requirement against assets held by, deposits or other
liabilities in or for the account of, advances, loans or other extensions of credit
by, or any other acquisition of funds by, any office of such Lender that is not
otherwise included in the determination of the Eurodollar Rate hereunder; or

               (iii) shall impose on such Lender any other condition;

and the result of any of the foregoing is to increase the cost to such Lender, by an amount which
such Lender deems to be material, of making, converting into, continuing or maintaining Eurodollar
Loans, or to reduce any amount receivable hereunder in respect thereof, then, in any such case, the
Borrower shall promptly pay such Lender, upon its demand, any additional amounts necessary to
compensate such Lender for such increased cost or reduced amount receivable. If any Lender becomes
entitled to claim any additional amounts pursuant to this Section, it shall promptly notify the
Borrower (with a copy to the Administrative Agent) of the event by reason of which it has become so
entitled.

          (b) If any Lender shall have determined that the adoption of or any change in any Requirement
of Law regarding capital adequacy or in the interpretation or application thereof or compliance by
such Lender or any corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental Authority made
subsequent to the date hereof shall have the effect of reducing the rate of return on such Lender’s
or such corporation’s capital as a consequence of its obligations hereunder to a level below that
which such Lender or such corporation could have achieved but for such adoption, change or
compliance (taking into consideration such Lender’s or such corporation’s policies with respect to
capital adequacy) by an amount deemed by such Lender to be material, then from time to time, after
submission by such Lender to the Borrower (with a copy to the Administrative Agent) of a written
request therefor, the Borrower shall pay to such Lender

 

26

such additional amount or amounts as will
compensate such Lender or such corporation for such reduction.

          (c) A certificate as to any additional amounts payable pursuant to this Section submitted by
any Lender to the Borrower (with a copy to the Administrative Agent) shall be conclusive in the
absence of manifest error. The obligations of the Borrower pursuant to this Section shall survive
the termination of this Agreement and the payment of the Loans and all other amounts payable
hereunder.

          2.14 Taxes. (a) All payments made by the Borrower under this Agreement shall be made
free and clear of, and without deduction or withholding for or on account of, any present or future
income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings,
now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority,
excluding net income taxes and franchise taxes (imposed in lieu of net income taxes) imposed on any
Agent or any Lender as a result of a present or former connection between such Agent or such Lender
and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision
or taxing authority thereof or therein (other than any such connection arising solely from such
Agent’s or such Lender’s having executed, delivered or performed its obligations or received a
payment under, or enforced, this Agreement or any other Loan Document). If any such non-excluded
taxes, levies, imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded
Taxes”) or any Other Taxes are required to be withheld from any amounts payable to any Agent or
any Lender hereunder, the amounts so payable to such Agent or such Lender shall be increased to the
extent necessary to yield to such Agent or such Lender (after payment of all Non-Excluded Taxes and
Other Taxes) interest or any such other amounts payable hereunder at the rates or in the amounts
specified in this Agreement; provided, however, that the
Borrower shall not be required to increase any such amounts payable to any Lender with respect
to any Non-Excluded Taxes (i) that are attributable to such Lender’s failure to comply with the
requirements of paragraph (d) or (e) of this Section or (ii) that are United States withholding
taxes imposed on amounts payable to such Lender at the time such Lender becomes a party to this
Agreement, except to the extent that such Lender’s assignor (if any) was entitled, at the time of
assignment, to receive additional amounts from the Borrower with respect to such Non-Excluded Taxes
pursuant to this paragraph (a).

          (b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

          (c) Whenever any Non-Excluded Taxes or Other Taxes are payable by the Borrower, as promptly as
possible thereafter the Borrower shall send to the Administrative Agent for the account of the
relevant Agent or Lender, as the case may be, a certified copy of an original official receipt
received by the Borrower showing payment thereof. If the Borrower fails to pay any Non-Excluded
Taxes or Other Taxes when due to the appropriate taxing authority or fails to remit to the
Administrative Agent the required receipts or other required documentary evidence, the Borrower
shall indemnify the Agents and the Lenders for any incremental taxes, interest or penalties that
may become payable by any Agent or any Lender as a result of any such failure. The agreements in
this Section shall survive the termination of this Agreement and the payment of the Loans and all
other amounts payable hereunder.

 

27

          (d) Each Lender (or Transferee) that is not a “U.S. Person” as defined in Section 7701(a)(30)
of the Code (a “Non-U.S. Lender”) shall deliver to the Borrower and the Administrative
Agent (or, in the case of a Participant, to the Lender from which the related participation shall
have been purchased) two copies of either U.S. Internal Revenue Service Form W-8BEN or Form W-8ECI,
or, in the case of a Non-U.S. Lender claiming exemption from U.S. federal withholding tax under
Section 871(h) or 881(c) of the Code with respect to payments of “portfolio interest” a statement
substantially in the form of Exhibit F and a Form W-8BEN, or any subsequent versions thereof or
successors thereto properly completed and duly executed by such Non-U.S. Lender claiming complete
exemption from, or a reduced rate of, U.S. federal withholding tax on all payments by the Borrower
under this Agreement and the other Loan Documents. Such forms shall be delivered by each Non-U.S.
Lender on or before the date it becomes a party to this Agreement (or, in the case of any
Participant, on or before the date such Participant purchases the related participation). In
addition, each Non-U.S. Lender shall deliver such forms promptly upon the obsolescence or
invalidity of any form previously delivered by such Non-U.S. Lender. Each Non-U.S. Lender shall
promptly notify the Borrower at any time it determines that it is no longer in a position to
provide any previously delivered certificate to the Borrower (or any other form of certification
adopted by the U.S. taxing authorities for such purpose). Notwithstanding any other provision of
this paragraph, a Non-U.S. Lender shall not be required to deliver any form pursuant to this
paragraph that such Non-U.S. Lender is not legally able to deliver.

          (e) A Lender that is entitled to an exemption from or reduction of non-U.S. withholding tax
under the law of the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times prescribed by
applicable law or reasonably requested by the Borrower, 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, provided that such Lender is legally entitled to
complete, execute and deliver such documentation and in such Lender’s reasonable judgment such
completion, execution or submission would not materially prejudice the legal position of such
Lender.

          2.15 Indemnity. The Borrower agrees to indemnify each Lender for, and to hold each
Lender harmless from, any loss or expense that such Lender may sustain or incur as a consequence of
(a) default by the Borrower in making a borrowing of, conversion into or continuation of Eurodollar
Loans after the Borrower has given a notice requesting the same in accordance with the provisions
of this Agreement, (b) default by the Borrower in making any prepayment after the Borrower has
given a notice thereof in accordance with the provisions of this Agreement or (c) the making of a
prepayment or conversion of Eurodollar Loans on a day that is not the last day of an Interest
Period with respect thereto. Such indemnification may include an amount equal to the excess, if
any, of (i) the amount of interest that would have accrued on the amount so prepaid, or not so
borrowed, converted or continued, for the period from the date of such prepayment or of such
failure to borrow, convert or continue to the last day of such Interest Period (or, in the case of
a failure to borrow, convert or continue, the Interest Period that would have commenced on the date
of such failure) in each case at the applicable rate of interest for such Loans provided for herein
(excluding, however, the Applicable Margin included therein, if any) over (ii) the amount
of interest (as reasonably determined by such Lender) that would have accrued to such Lender on
such amount by placing such amount on deposit for a comparable

 

28

period with leading banks in the
interbank Eurodollar market. A certificate as to any amounts payable pursuant to this Section
submitted to the Borrower by any Lender shall be conclusive in the absence of manifest error. This
covenant shall survive the termination of this Agreement and the payment of the Loans and all other
amounts payable hereunder.

          2.16 Illegality. Notwithstanding any other provision herein, if the adoption of or
any change in any Requirement of Law or in the interpretation or application thereof shall make it
unlawful for any Lender to make or maintain Eurodollar Loans as contemplated by this Agreement, (a)
the commitment of such Lender hereunder to make Eurodollar Loans, continue Eurodollar Loans as such
and convert Base Rate Loans to Eurodollar Loans shall forthwith be canceled and (b) such Lender’s
Loans then outstanding as Eurodollar Loans, if any, shall be converted automatically to Base Rate
Loans on the respective last days of the then current Interest Periods with respect to such Loans
or within such earlier period as required by law. If any such conversion of a Eurodollar Loan
occurs on a day which is not the last day of the then current Interest Period with respect thereto,
the Borrower shall pay to such Lender such amounts, if any, as may be required pursuant to Section
2.15.

          2.17 Change of Lending Office. Each Lender agrees that, upon the occurrence of any
event giving rise to the operation of Section 2.13, 2.14(a) or 2.16 with respect to such Lender, it
will, if requested by the
Borrower, use reasonable efforts (subject to overall policy considerations of such Lender) to
designate another lending office for any Loans affected by such event with the object of avoiding
the consequences of such event; provided, that such designation is made on terms that, in
the sole judgment of such Lender, cause such Lender and its lending office(s) to suffer no
economic, legal or regulatory disadvantage, and provided, further, that nothing in
this Section shall affect or postpone any of the obligations of the Borrower or the rights of any
Lender pursuant to Section 2.13, 2.14(a) or 2.16.

SECTION 3. REPRESENTATIONS AND WARRANTIES

          The Borrower represents and warrants to each Lender and the Administrative Agent as of the
Closing Date:

          3.1 Existence and Standing. Each of the Borrower and its Subsidiaries is a
corporation, partnership (in the case of Subsidiaries only) or limited liability company duly
incorporated or organized, as the case may be, validly existing and (to the extent such concept
applies to such entity) in good standing under the laws of its jurisdiction of incorporation or
organization and has all requisite authority to conduct its business in each jurisdiction in which
its business is conducted, except where the failure to be so qualified does not or could not be
expected to cause or result in the occurrence of a Material Adverse Effect.

          3.2 Authorization and Validity. Each of the Borrower and each Guarantor has the power
and authority and legal right to execute and deliver the Loan Documents to which the Borrower or
each such Guarantor, as applicable, is a party and to perform its obligations thereunder. The
execution and delivery by each of the Borrower and each Guarantor of the Loan Documents to which
the Borrower or each such Guarantor, as applicable, is a party and the performance of its
obligations thereunder have been duly authorized by proper proceedings, and the Loan Documents to
which the Borrower or such Guarantor, as applicable, is a party constitute

 

29

legal, valid and binding
obligations of the Borrower or such Guarantor, as applicable, enforceable against the Borrower or
such Guarantor, as applicable, in accordance with their terms, except as enforceability may be
limited by (i) bankruptcy, insolvency, fraudulent conveyances, reorganization or similar laws
relating to or affecting the enforcement of creditors’ rights generally; (ii) general equitable
principles (whether considered in a proceeding in equity or at law); and (iii) requirements of
reasonableness, good faith and fair dealing.

          3.3 No Conflict; Government Consent. Neither the execution and delivery by the
Borrower or the Guarantors, as applicable, of the Loan Documents, nor the consummation of the
transactions therein
contemplated, nor compliance with the provisions thereof will violate (i) any law, rule,
regulation, order, writ, judgment, injunction, decree or award binding on the Borrower or any of
the Guarantors, or (ii) the Borrower’s or any Guarantor’s articles or certificate of incorporation,
partnership agreement, certificate of partnership, articles or certificate of organization,
by-laws, or operating agreement or other management agreement, as the case may be, or (iii) the
provisions of any indenture, instrument or agreement to which the Borrower or any of the Guarantors
is a party or is subject, or by which it, or its Property, is bound, or conflict with, or
constitute a default under, or result in, or require, the creation or imposition of any Lien in, of
or on the Property of the Borrower or a Guarantor pursuant to the terms of, any such indenture,
instrument or agreement, except where such violation would not reasonably be expected to have a
Material Adverse Effect. No order, consent, adjudication, approval, license, authorization, or
validation of, or exemption by, any governmental or public body or authority, or any subdivision
thereof, which has not been obtained by the Borrower or any of the Guarantors, is required to be
obtained by the Borrower or any of the Guarantors in connection with the execution and delivery of
the Loan Documents, the borrowings under this Agreement, the payment and performance by the
Borrower of the Obligations or the legality, validity, binding effect or enforceability of any of
the Loan Documents, except where failure to obtain the same would not reasonably be expected to
have a Material Adverse Effect.

          3.4 Financial Statements. The December 31, 2006 consolidated financial statements of
the Borrower and its Subsidiaries heretofore delivered to the Administrative Agent and the Lenders
were prepared in accordance with US GAAP in effect on the date such statements were prepared and
fairly present the consolidated financial condition of the Borrower and its Subsidiaries at such
date in all material respects.

          3.5 Material Adverse Change. Since December 31, 2006, there has been no change in the
business, Property, condition (financial or otherwise) or results of operations of the Borrower and
its Subsidiaries, taken together, which could reasonably be expected to have a Material Adverse
Effect.

          3.6 Taxes. The Borrower and its Subsidiaries have filed all United States federal tax
returns and all other tax returns which are required to be filed (except where failure to file such
other tax returns would not reasonably be expected to have a Material Adverse Effect) and have paid
all taxes due pursuant to said returns or pursuant to any assessment received by the Borrower or
any of its Subsidiaries, except in respect of such taxes, if any, as are being contested in good
faith and as to which adequate reserves have been provided in accordance with Agreement Accounting
Principles and as to which no Lien exists (except as permitted by Section 6.3(b)). The

 

30

United
States income tax returns of the Borrower and its Subsidiaries have been audited by the Internal
Revenue Service through the fiscal year ended 2003.

          3.7 Litigation and Contingent Obligations. There is no litigation, arbitration, governmental investigation, proceeding or inquiry
pending or, to the knowledge of any of their officers, threatened against or affecting the Borrower
or any of its Subsidiaries which could reasonably be expected to have a Material Adverse Effect or
which seeks to prevent, enjoin or delay the making of any Loans. Other than any liability incident
to any litigation, arbitration or proceeding which could not reasonably be expected to have a
Material Adverse Effect, the Borrower has no material contingent obligations not provided for or
disclosed in the financial statements referred to in Section 3.4.

          3.8 Subsidiaries. Schedule 3.8 contains an accurate list of all Subsidiaries
of the Borrower as of the date of this Agreement, setting forth their respective jurisdictions of
organization and the percentage of their respective capital stock or other ownership interests
owned by the Borrower or other Subsidiaries. Schedule 3.8 also identifies those
Subsidiaries that constitute Guarantors. All of the issued and outstanding shares of capital stock
or other ownership interests of such Subsidiaries have been (to the extent such concepts are
relevant with respect to such ownership interests) duly authorized and issued and are fully paid
and non-assessable.

          3.9 ERISA. As of the Closing Date, the Unfunded Liabilities of all Single Employer
Plans do not in the aggregate exceed $75,000,000. As of the Closing Date, each Plan complies with
all minimum funding requirements under ERISA. Except as provided on Schedule 3.9, as of the
Closing Date, neither the Borrower nor any member of the Controlled Group is party to a
Multiemployer Plan or has, or could reasonably be expected to have, any liability to a
Multiemployer Plan.

          3.10 Accuracy of Information. The information, exhibits or reports furnished by the
Borrower to the U.S. Securities and Exchange Commission on Form 10-K and Form 10-Q do not contain
any material misstatement of fact or omit to state a material fact or any fact necessary to make
the statements contained therein not misleading.

          3.11 Regulation U. Neither the Borrower nor any of its Subsidiaries is engaged
principally, or as one of its important activities, in the business of extending credit for the
purpose, whether immediate, incidental or ultimate of buying or carrying margin stock (as defined
in Regulation U), and after applying the proceeds of the Loans, margin stock (as defined in
Regulation U) constitutes less than 25% of the value of those assets of the Borrower and its
Subsidiaries which are subject to any limitation on sale, pledge, or any other restriction
hereunder.

          3.12 Material Agreements. Neither the Borrower nor any Subsidiary is in default in
the performance, observance or fulfillment of any of the obligations, covenants or conditions
contained in (i) any agreement or instrument to which it is a party, which default could reasonably
be expected to have
a Material Adverse Effect or (ii) any agreement or instrument evidencing or governing material
Indebtedness.

          3.13 Compliance With Laws. The Borrower and its Subsidiaries have complied with all
applicable statutes, rules, regulations, orders and restrictions of any domestic or foreign

 

31

government or any instrumentality or agency thereof having jurisdiction over the conduct of their
respective businesses or the ownership of their respective Property, except where the failure to do
so has not caused or resulted in the occurrence of a Material Adverse Effect.

          3.14 Ownership of Properties. On the date of this Agreement, the Borrower and its
Subsidiaries have good title, free of all Liens other than those permitted by Section 6.3, to all
of the assets reflected in the Borrower’s most recent consolidated financial statements provided to
the Administrative Agent, as owned by the Borrower and its Subsidiaries.

          3.15 Plan Assets; Prohibited Transactions. The Borrower is not an entity deemed to
hold “plan assets” within the meaning of 29 C.F.R. § 2510.3-101 of an employee benefit plan (as
defined in Section 3(3) of ERISA) which is subject to Title I of ERISA or any plan (within the
meaning of Section 4975 of the Code), and neither the execution of this Agreement nor the making of
Loans hereunder gives rise to a prohibited transaction within the meaning of Section 406 of ERISA
or Section 4975 of the Code.

          3.16 Environmental Matters. In the ordinary course of its business, the officers of
the Borrower consider the effect of Environmental Laws on the business of the Borrower and its
Subsidiaries, in the course of which they identify and evaluate potential risks and liabilities
accruing to the Borrower due to Environmental Laws. On the basis of this consideration, the
Borrower has concluded that, in its good faith determination, the risks and liabilities accruing to
the Borrower due to Environmental Laws would not reasonably be expected to have a Material Adverse
Effect. Neither the Borrower nor any Subsidiary has received any notice to the effect that its
operations are not in material compliance with any of the requirements of applicable Environmental
Laws or are the subject of any federal or state investigation evaluating whether any remedial
action is needed to respond to a release of any toxic or hazardous waste or substance into the
environment, which non-compliance or remedial action could reasonably be expected to have a
Material Adverse Effect.

          3.17 Investment Company Act. Neither the Borrower nor any Subsidiary is an
“investment company” or a company “controlled” by an “investment company”, within the meaning of
the Investment Company Act of 1940, as amended.

          3.18 Insurance. The Borrower maintains, and has caused each Subsidiary to maintain, with financially sound
and reputable insurance companies, insurance on all their Property in such amounts, subject to such
deductibles and self-insurance retentions and covering such properties and risks as is consistent
with sound business practice. The Borrower has delivered to the Administrative Agent and the
Lenders a complete and accurate list of its insurance policies and programs and the Property
subject thereto.

          3.19 No Default or Unmatured Default. No Default or Unmatured Default has occurred
and is continuing.

          3.20 Use of Proceeds. The proceeds of the Loans shall be used to finance a portion of
the Shell Acquisition and to pay related fees and expenses.

 

32

SECTION 4. CONDITIONS PRECEDENT

          4.1 Effectiveness of Commitment. The Lenders’ Commitment shall not be effective
hereunder until the Administrative Agent shall have received on the Closing Date a fully executive
copy of this Agreement and the following conditions precedent have been satisfied by the Borrower:

     (a) Copies of the articles or certificate of incorporation (or the equivalent thereof)
of (a) the Borrower and (b) each Guarantor, in each case together with all amendments
thereto, and a certificate of good standing, each certified by the appropriate governmental
officer in its jurisdiction of organization.

     (b) Copies, certified by the Secretary or Assistant Secretary (or the equivalent
thereof) of (a) the Borrower and (b) each Guarantor, in each case, of its by-laws and of its
Board of Directors’ resolutions and of resolutions or actions of any other body authorizing
the execution of the Loan Documents to which the Borrower or such Subsidiary, as applicable,
is a party.

     (c) An incumbency certificate, executed by the Secretary or Assistant Secretary (or the
equivalent thereof) of (a) the Borrower and (b) each Guarantor, in each case which shall
identify by name and title and bear the signatures of the Authorized Officers and any other
officers of the Borrower and such Subsidiary authorized to sign the Loan Documents to which
the Borrower and such Subsidiary are parties, upon which certificate the Agent and the
Lenders shall be entitled to rely until informed of any change in writing by the Borrower or
such Subsidiary, as applicable.

     (d) A certificate, in substantially the form of Exhibit B, signed by the chief
financial officer or vice president, finance and treasurer of the Borrower, stating that (a)
no Default or Unmatured Default has occurred and is then continuing, (b) all of the
representations and warranties in Section 3 shall be true and correct in all material
respects as of such date (or an earlier date if a representation or warranty relates to a
specified earlier
date) and (c) except as disclosed in the Borrower’s most recent quarterly report on
Form 10-Q, no material adverse change in the business, Property, condition (financial or
otherwise), operations or results of operations of the Borrower or any of its Guarantors has
occurred since December 31, 2006.

     (e) A written opinion of the Borrower’s counsel, in form and substance satisfactory to
the Agent and addressed to the Lenders, in substantially the form of Exhibit D hereto.

     (f) Any Notes requested by a Lender pursuant to Section 2.3(e) payable to the order of
each such requesting Lender.

     (g) Written money transfer instructions, in substantially the form of Exhibit H,
addressed to the Administrative Agent and signed by an Authorized Officer, together with
such other related money transfer authorizations as the Administrative Agent may have
reasonably requested.

 

33

     (h) An initial compliance certificate dated as of the date hereof, in substantially the
form of Exhibit A hereto, together with (i) the Borrower’s most recently completed audited
financial statements for the fiscal year ended December 31, 2006 as filed on Form 10-K with
the U.S. Securities and Exchange Commission, and (ii) the Borrower’s most recently completed
financial summaries.

     (i) All fees owing to the Administrative Agent, Arrangers and the Lenders on the
Closing Date shall have been fully paid.

     (j) All documents reasonably requested by the Administrative Agent in respect of the
Shell Acquisition.

     (k) Such other documents as any Lender or its counsel may have reasonably requested,
including, without limitation, those documents set forth in Exhibit I hereto.

     (l) There exists no Default or Unmatured Default.

     (m) The representations and warranties contained in Section 3 are true and correct as
of the Closing Date except (x) with respect to Sections 3.5 and 3.7, the representations and
warranties set forth in such Sections shall have been true and correct on and as of the date
of the most recent Form 10-K or Form 10-Q filing, as applicable, made by the Borrower with
the U.S. Securities and Exchange Commission, and (y) with respect to any other
representation and warranty set forth in Section 3, to the extent such representation or
warranty is stated to relate solely to an earlier date, such representation or warranty
shall have been true and correct on and as of such earlier date.

     (n) The Lenders shall have received a reasonably satisfactory solvency analysis
certified by the chief financial officer of the Borrower substantially in the form of
Exhibit K hereto, which shall document the solvency of the Borrower and its Subsidiaries
considered as a whole after giving effect to the transactions contemplated hereby.

     (o) The Lenders shall have received, sufficiently in advance of the Closing Date, all
documentation and other information required by bank regulatory authorities under applicable
“know your customer” and anti-money laundering rules and regulations, including without
limitation the United States PATRIOT Act.

     (p) The Shell Acquisition shall have been consummated substantially simultaneously
herewith in accordance with all conditions, provisions and covenants in the Shell
Acquisition Agreements (without modification, amendment or waiver thereof).

     (q) The Revolving Credit Facility shall have been closed substantially simultaneously
herewith.

     (r) The Administrative Agent shall have received insurance certificates conforming to
the requirements of Section 3.18 hereto.

     (s) The Lenders shall have received (i) consolidated financial statements of the
Borrower and its consolidated Subsidiaries audited in accordance with the requirements of

 

34

Regulation S-X for the 2005 and 2006 fiscal years; (ii) unaudited interim consolidated
financial statements of the Borrower and its consolidated Subsidiaries for each quarterly
period ended subsequent to the date of the latest applicable financial statements delivered
pursuant to clause (h) of this paragraph as to which such financial statements are
available; (iii) financial statements of the Acquired Assets audited in accordance with
Regulation S-X for the year ended December 31, 2006; and (iv) unaudited interim financial
statements for the Acquired Assets for the three-month period ended March 31, 2007; and, in
each case, such financial statements shall not, in the reasonable judgment of the Lenders,
reflect any material adverse change in the consolidated financial condition of the Borrower
and its consolidated Subsidiaries, as reflected in the financial statements or projections.

     (t) Within 3 Business Days of the Closing Date, the Borrower shall deliver legal
opinions meeting the requirements of clause (e) of this Section with respect to the
following Subsidiaries: Tesoro Northstore Company, Smiley’s Super Service, Inc. and Tesoro
Hawaii Corporation.

SECTION 5. AFFIRMATIVE COVENANTS

          The Borrower hereby agrees that, so long as the Commitments remain in effect, or any Loan or
other amount is owing to any Lender or any Agent hereunder, the Borrower shall and shall cause each
of its Subsidiaries to:

          5.1 Financial Reporting. Maintain, for itself and each Guarantor, a system of
accounting established and administered in accordance with US GAAP, and furnish to the Agent for
the benefit of the Lenders:

     (a) Within 105 days after the close of its 2007 fiscal year, (a) financial statements
prepared in accordance with Agreement Accounting Principles on a consolidated basis for
itself and its Subsidiaries, as filed on Form 10-K with the U.S. Securities and Exchange
Commission, accompanied by (i) an auditor’s report, unqualified as to scope, of a
nationally recognized firm of independent public accountants or other independent public
accountants reasonably acceptable to the Required Lenders; (ii) any management letter
prepared by said accountants; and (iii) a certificate of said accountants that, in the
course of their examination necessary for their certification of the foregoing, they have
obtained no knowledge of any Default or Unmatured Default, or if, in the opinion of such
accountants, any Default or Unmatured Default shall exist, stating the nature and status
thereof.

     (b) Within (x) 30 days after the end of each calendar month other than those calendar
months that end the first three fiscal quarters of each of the Borrower’s fiscal years, and
(y) 45 days after the end of each December of each calendar year, for itself and its
consolidated Subsidiaries, the Borrower’s financial summaries for such month, which shall be
prepared on a consolidated basis and shall be in form and substance substantially similar to
the financial summaries delivered on or prior to the Closing Date or shall otherwise be in
form and substance reasonably acceptable to the Administrative Agent.

     (c) Within 45 days after the close of each of the first three fiscal quarters of each
of its fiscal years, for itself and its Subsidiaries, consolidated unaudited financial
statements

 

35

for such period as filed on Form 10-Q with the U.S. Securities and Exchange
Commission, prepared in accordance with Agreement Accounting Principles and (except for the
exclusion of any disclosure permitted by the U.S. Securities and Exchange Commission)
certified as to fairness of presentation and consistency by its chief financial officer or
treasurer.

     (d) Together with the financial statements required under clauses (a) and (c) above, a
compliance certificate in substantially the form of Exhibit A signed by its chief financial
officer or treasurer or vice president, finance and treasurer showing the calculations
necessary to determine compliance with this Agreement, an officer’s certificate in
substantially the form of Exhibit J stating that no Default or Unmatured Default exists, or
if any Default or Unmatured Default exists, stating the nature and status thereof, and,
together with the financial statements required under clauses (a) and (c) above, copies of
the certificate or certificates as filed by the Borrower in connection with Forms 10-K and
10-Q with the U.S. Securities and Exchange Commission relating to Section 302 and Section
906 of the Sarbanes-Oxley Act of 2002.

     (e) As soon as practicable and in any event within 30 days after the Borrower knows
that any Reportable Event has occurred with respect to any Plan, a statement, signed by the
chief financial officer or treasurer of the Borrower, describing said Reportable Event and
the action which the Borrower proposes to take with respect thereto.

     (f) As soon as practicable and in any event within 10 Business Days after receipt by
the Borrower, a copy of (a) any notice or claim to the effect that the Borrower or any of
its Subsidiaries is or may be liable to any Person as a result of the release by the
Borrower, any of its Subsidiaries, or any other Person of any toxic or hazardous waste or
substance into the environment, and (b) any notice alleging any violation of any federal,
state or local environmental, health or safety law or regulation by the Borrower or any of
its
Subsidiaries, which, in either case, the Borrower in good faith believes would
reasonably be expected to have a Material Adverse Effect.

     (g) Promptly upon the filing thereof, copies of all registration statements and annual,
quarterly, or other regular reports which the Borrower or any of its Subsidiaries files with
the Securities and Exchange Commission, including, without limitation, all certifications
and other filings required by Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002
and all rules and regulations related thereto.

     (h) Such other information (including non-financial information and additional or
supplemental reporting) as the Administrative Agent or any Lender may from time to time
reasonably request.

          5.2 Conduct of Business. Carry on and conduct its business in substantially the same
manner and in similar fields of enterprise as it is presently conducted and do all things necessary
to remain duly incorporated or organized, validly existing and (to the extent such concept applies
to such entity) in good standing as a corporation, partnership or limited liability company in its
jurisdiction of incorporation or organization, as the case may be, and maintain all requisite
authority to conduct its business in each jurisdiction in which its business is conducted,

 

36

except
where the failure to do so could not reasonably be expected to cause or result in the occurrence of
a Material Adverse Effect.

          5.3 Maintenance of Properties. Subject to Section 6.5, maintain, preserve, protect
and keep its Property used in the operation of its business in good repair, working order and
condition, (ordinary wear and tear excepted), and make all necessary repairs, renewals and
replacements so that its business carried on in connection therewith may be properly conducted at
all times in the ordinary course; provided, however, that the foregoing shall not
prohibit, limit or impair the Borrower’s or any Subsidiary’s ability to sell or discontinue the use
of, in its reasonable business judgment, any Property.

          5.4 Inspection; Keeping of Books and Records. Permit the Administrative Agent, by its
respective representatives and agents, to inspect any of the Property, books and financial records
of the Borrower and each Subsidiary (including all insurance policies), to examine and make copies
of the books of accounts and other financial records of the Borrower and each Subsidiary, and to
discuss the affairs, finances and accounts of the Borrower and each Subsidiary with, and to be
advised as to the same by, their respective officers at such reasonable times and intervals as the
Administrative Agent may designate. The Borrower shall keep and maintain, and cause each of its
Subsidiaries to keep and maintain, in all material respects, proper books of record and account in
which entries in conformity with Agreement Accounting Principles shall be made of all dealings and
transactions in relation to their respective businesses and activities. If a Default has occurred
and is continuing, the Borrower shall turn over copies of any such records to the Administrative
Agent or its representatives as the Administrative Agent shall reasonably request. The
Administrative Agent
agrees that it shall conduct any such inspection or examination in reasonable accordance with
the Borrower’s and its Subsidiaries’ safety policies and procedures and shall not materially
interfere with or impair the Borrower’s or its Subsidiaries’ operations.

          5.5 Notice of Default. Within five (5) Business Days after an Authorized Officer has
knowledge thereof, the Borrower will, and will cause each Guarantor to, give notice in writing to
the Lenders of the occurrence of any Default or Unmatured Default.

          5.6 Taxes. Timely file complete and correct United States federal and applicable
material foreign, state and local tax returns required by law and pay when due all taxes,
assessments and governmental charges and levies upon it or its income, profits or Property, except
those which are being contested in good faith by appropriate proceedings and with respect to which
adequate reserves have been set aside in accordance with Agreement Accounting Principles.

          5.7 Insurance. Maintain with financially sound and reputable insurance companies
insurance in such amounts, subject to such deductibles and self-insurance retentions, and covering
such risks as is consistent with sound business practice. In the event the Borrower or any of its
Subsidiaries at any time or times hereafter shall fail to obtain or maintain any of the policies or
insurance required herein or to pay any premium in whole or in part relating thereto, then the
Agent, without waiving or releasing any obligations or resulting Default hereunder, may at any time
or times thereafter (but shall be under no obligation to do so) obtain and maintain such policies
of insurance and pay such premiums and take any other action with respect thereto which

 

37

the
Administrative Agent, acting reasonably, deems advisable. All sums so disbursed by the
Administrative Agent shall constitute part of the Obligations, payable as provided in this
Agreement. Borrower shall promptly notify the Administrative Agent if any insurance policy lapses,
is terminated or is cancelled prior to the expiration date thereof.

          5.8 Compliance with Laws. Comply with all laws, rules, regulations, orders, writs,
judgments, injunctions, decrees or awards to which it may be subject including, without limitation,
(i) Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002, and (ii) all Environmental Laws,
except where the Borrower believes in good faith that the failure to do so could not reasonably be
expected to cause or result in the occurrence of a Material Adverse Effect.

          5.9 Pro Forma Financial Statements. Within 30 days of the Closing Date, deliver (A)
the unaudited pro forma consolidated balance sheet of the Borrower and its
consolidated Subsidiaries as at March 31, 2007 (including the notes thereto) and (B) the unaudited
pro forma consolidated balance sheet of the Shell Acquired Assets as at March 31,
2007 (including the notes thereto) (collectively, the “Pro Forma Balance Sheets”), each
prepared in accordance with Regulation S-X giving effect (as if
such events had occurred on such date) to (i) the consummation of the Shell Acquisition, (ii)
the financing thereof (including the Loans) and (iii) the payment of fees and expenses in
connection with the foregoing. The Pro Forma Balance Sheets shall be prepared based on the best
information available to the Borrower as of the date of delivery thereof, and present fairly on a
pro forma basis the estimated financial position of the Borrower and its
consolidated Subsidiaries as at March 31, 2007, assuming that the events specified in the preceding
sentence had actually occurred at such date.

          5.10 Future Guarantors. With respect to any new Subsidiary (other than an Excluded
Foreign Subsidiary) created or acquired on or after the Closing Date (which, for the purposes of
this paragraph, shall include any existing Subsidiary that ceases to be an Excluded Foreign
Subsidiary), by the Borrower or any of its Subsidiaries, (i) promptly cause such new Subsidiary to
execute and deliver an agreement or instrument pursuant to which such Subsidiary becomes a party to
this Agreement and provides a Guarantee of the Obligations, and (ii) if requested by the
Administrative Agent, deliver to the Administrative Agent legal opinions relating to the matters
described above, which opinions shall be in form and substance, and from counsel, reasonably
satisfactory to the Administrative Agent.

          5.11 Confidential Information Memoranda. (a) If any Obligations are outstanding more
than 90 days after the Closing Date, at the request of the Administrative Agent or the Arrangers,
use all commercially reasonable efforts to assist the Arrangers in the syndication of the Loans,
including, without limitation, (i) ensuring that the syndication efforts benefit materially from
the existing lending relationships of the Borrower, (ii) arranging for direct contact between
senior management and advisors of the Borrower and the prospective lenders, (iii) assisting in the
preparation of confidential offering memoranda (the “Confidential Information Memoranda”) and other
marketing materials to be used in connection with any syndication, including causing such
Confidential Information Memoranda to conform to market standards as reasonably determined by the
Arrangers and, at the request of Arrangers, the preparation of versions of the Confidential
Information Memoranda that do not contain material non-public information concerning the Borrower,
its affiliates or its securities or the Shell Acquired Assets for purposes of United States federal
and state securities laws and (iv) hosting, with the Arrangers, one or more

 

38

meetings of prospective
lenders, and, in connection with any such lender meeting, consulting with the Arrangers with
respect to the presentations to be made at such meeting and making available appropriate officers
and representatives, as reasonably requested by the Arrangers.

          (b) If any Obligations are outstanding more than 90 days after the Closing Date, upon the
reasonable request of the Arrangers, the Borrower agrees to prepare and provide to the Arrangers
all information with respect to the Borrower, the Shell Acquired Assets, the Shell Acquisition and
the other transactions contemplated in connection therewith, including all financial information,
and financial projections related thereto (the “Projections”), as they may reasonably request in
connection with the syndication of the Loans referred to in Section 5.11(a). Borrower hereby
covenants that (i) all such information other than the Projections (the “Information”) that will be
made available to the Arrangers by the Borrower or any of its
representatives in connection with the Shell Acquired Assets, the Shell Acquisition and the
other transactions contemplated in connection therewith will be, when furnished (or if dated as of
a certain date or otherwise specified therein as of a certain date, as of such date), complete and
correct in all material respects and will not, when so furnished (or if dated as of a certain date
or otherwise specified therein as of a certain date, as of such date), contain any untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements
contained therein not materially misleading in light of the circumstances under which such
statements are made; provided, that the foregoing covenant, to the extent it relates to (A)
financial statements in respect of the Shell Acquired Assets or (B) materials prepared by persons
other than the Borrower (not at the request of the Borrower), is made to the best of the Borrower’s
knowledge and (ii) the Projections that will be made available to the Arrangers by the Borrower or
any of its representatives will be prepared in good faith based upon assumptions the Borrower
deemed reasonable when so made. The Borrower hereby acknowledges and covenants that in arranging
and syndicating the Loans the Arrangers may use and rely on the Information and Projections without
independent verification thereof and that the Borrower will promptly notify the Arrangers of any
changes in circumstances that could reasonably be expected to call into question the continued
reasonableness of any material assumption underlying the Projections.

          5.12 Use of Proceeds. Use the proceeds of the Loans to finance a portion of the Shell
Acquisition and to pay related fees and expenses.

SECTION 6. NEGATIVE COVENANTS

          The Borrower hereby agrees that, so long as the Commitments remain in effect, or any Loan or
other amount is owing to any Lender or any Agent hereunder, the Borrower shall not, and shall not
permit any of its Subsidiaries to, directly or indirectly:

          6.1 Financial Condition Covenants.

          (a) Consolidated Indebtedness to Capitalization Ratio. Permit the Consolidated
Indebtedness to Capitalization Ratio as at the last day of any fiscal quarter of the Borrower,
commencing with the first fiscal quarter ending after the Closing Date, to exceed 0.6 to 1.0.

 

39

          (b) Consolidated Interest Coverage Ratio. Permit the Consolidated Interest Coverage
Ratio for any period of four consecutive fiscal quarters of the Borrower, commencing with the first
fiscal quarter ending after the Closing Date, to be less than 3.0 to 1.0.

          6.2 Limitation on Indebtedness. Create, incur or suffer to exist any Indebtedness,
except:

     (a) The Obligations;

     (b) Indebtedness existing on the date hereof and described in Schedule 6.2(b),
together with any Refinancing Indebtedness in respect thereof;

     (c) Indebtedness arising under Rate Management Transactions;

     (d) Purchase money Indebtedness, whether secured or unsecured (including Capitalized
Leases), incurred by the Borrower or any of its Subsidiaries after the Closing Date to
finance the acquisition of assets used in its business, if (1) at the time of such
incurrence, no Default or Unmatured Default has occurred and is continuing or would result
from such incurrence, and (2) such Indebtedness does not exceed $250,000,000 in the
aggregate outstanding at any time, (such Indebtedness being referred to herein as
“Permitted Purchase Money Indebtedness”);

     (e) Indebtedness arising from intercompany loans and advances (i) made by any
Subsidiary to the Borrower or any Guarantor, (ii) made by the Borrower to any Guarantor, or
(iii) made by the Borrower to any Excluded Subsidiary or Wholly-Owned Subsidiary not
constituting a Guarantor in an aggregate principal amount in Dollars not to exceed
$10,000,000 at any time for all such Indebtedness under this clause (iii); provided
that all such Indebtedness shall be expressly subordinated to the Obligations;

     (f) Indebtedness not described in or otherwise subject to clauses (a) to (e) above that
is unsecured and that does not at any time exceed an aggregate amount equal to $75,000,000;
provided, however, that the Borrower shall not incur more than $25,000,000
of unsecured Indebtedness under this clause (f) without the Administrative Agent’s prior
consent;

     (g) Indebtedness in an aggregate amount not to exceed $500,000,000 at any time arising
under or in connection with Letters of Credit (other than Letters of Credit issued under the
Revolving Credit Facility Documentation (as in effect on the date hereof)) issued for the
account of the Borrower or any Subsidiary thereof; provided, that such Letters of
Credit shall only be used in connection with the Borrower’s or such Subsidiary’s acquisition
of Petroleum Inventory outside of the United States of America;

     (h) Indebtedness the net proceeds of which are in cash and applied to the prepayment of
the Loans pursuant to Section 2.6(a); and

     (i) (x) Indebtedness of the Borrower in respect of the Revolving Credit Facility
Documentation (as in effect on the date hereof) (including, for the avoidance of doubt,
Indebtedness incurred pursuant Sections 2.1.2 and 2.20 of the Revolving Credit Facility

 

40

Documentation) and (y) Contingent Obligations of any Guarantor in respect of such
Indebtedness.

          6.3 Limitation on Liens. Create, incur, or suffer to exist any Lien in, of or on the
Property of the Borrower or any of its Subsidiaries, except for the following, which are permitted
hereunder:

     (a) Liens created pursuant to the Revolving Credit Facility Documentation (as in effect
on the date hereof);

     (b) Liens for taxes, assessments or governmental charges or levies on its Property if
the same shall not at the time be delinquent or thereafter can be paid without penalty, or
are being contested in good faith and by appropriate proceedings and for which adequate
reserves in accordance with Agreement Accounting Principles shall have been set aside on its
books;

     (c) Liens for landlords’, wage earners’, carriers’, warehousemen’s and mechanics’ liens
and other similar liens arising in the ordinary course of business which secure payment of
obligations not more than 180 days past due or which are being contested in good faith by
appropriate proceedings and for which adequate reserves in accordance with Agreement
Accounting Principles shall have been set aside on its books;

     (d) Liens arising out of pledges or deposits under worker’s compensation laws,
unemployment insurance, old age pensions, or other social security or retirement benefits,
or similar legislation;

     (e) Liens existing on the date hereof and described in Schedule 6.3(e);

     (f) Deposits securing liability to insurance carriers under insurance or self-insurance
arrangements;

     (g) Deposits to secure the performance of bids, trade contracts (other than for
borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature incurred in the ordinary course of business;

     (h) Easements, reservations, rights-of-way, restrictions, survey exceptions and other
similar encumbrances as to real property of the Borrower and its Subsidiaries which
customarily exist on properties of Persons engaged in similar activities and similarly
situated and which do not materially interfere with the conduct of the business of the
Borrower or such Subsidiary conducted at the property subject thereto;

     (i) Liens arising by reason of any judgment, decree or order of any court or other
governmental authority, if appropriate legal proceedings are being diligently prosecuted and
shall not have been finally terminated or the period within which such proceedings may be
initiated shall not have expired, in an aggregate amount not to at any time exceed
$30,000,000;

 

41

     (j) Liens existing on any asset of any Subsidiary of the Borrower at the time such
Subsidiary becomes a Subsidiary and not created in contemplation of such event;

     (k) Liens on any asset securing Indebtedness incurred or assumed for the purpose of
financing or refinancing all or any part of the cost of acquiring or constructing such
asset; provided that such Lien attaches to such asset concurrently with or within eighteen
(18) months after the acquisition or completion or construction thereof;

     (l) Liens existing on any asset of any Subsidiary of the Borrower at the time such
Subsidiary is merged or consolidated with or into the Borrower or any Subsidiary and not
created in contemplation of such event;

     (m) Liens existing on any asset prior to the acquisition thereof by the Borrower or any
Subsidiary and not created in contemplation thereof; provided that such Liens do not
encumber any other property or assets (other than replacement assets as a result of a
casualty or condemnation event);

     (n) Liens arising out of the refinancing, extension, renewal or refunding of any
Indebtedness secured by any Lien permitted under clauses (k) through (m) above; provided
that (a) such Indebtedness is not secured by any additional assets (other than replacement
assets as a result of a casualty or condemnation event), and (b) the amount of such
Indebtedness secured by any such Lien is not increase;

     (o) Purchase money Liens securing Permitted Purchase Money Indebtedness (as defined in
Section 6.2); provided, that such Liens shall not apply to any property of the Borrower or
its Subsidiaries (other than replacement assets as a result of a casualty or condemnation
event) other than that purchased with the proceeds of such Permitted Purchase Money
Indebtedness;

     (p) Any Lien securing Indebtedness, neither assumed nor guaranteed by the Borrower or
any of its Subsidiaries nor on which it customarily pays interest, existing upon real estate
or rights in or relating to real estate acquired by the Borrower for refining, substation,
metering station, pump station, storage, gathering line, transmission line, transportation
line, distribution line or for right-of-way purposes, any Liens reserved in leases for rent
and for compliance with the terms of the leases in the case of leasehold estates, to the
extent that any such Lien referred to in this clause (p) does not materially impair the use
of the Property covered by such Lien for the purposes of which such Property is held by the
Borrower or any of its Subsidiaries;

     (q) Liens arising under ERISA provided that such Liens do not secure liabilities which,
in the aggregate, equal or exceed $5,000,000;

     (r) Any obligations or duties affecting any of the Property of the Borrower or its
Subsidiaries to any municipality or public authority with respect to any franchise, grant,
license or permit which do not materially impair the use of such Property for the purposes
for which it is held;

 

42

     (s) Defects, irregularities and deficiencies in title of any rights of way or other
Property constituting real estate of the Borrower or any Subsidiary thereof which in the
aggregate do not materially impair the use of such rights of way or other Property
constituting real estate for the purposes for which such rights of way and other Property
constituting real estate are held by the Borrower or any Subsidiary, and defects,
irregularities and deficiencies in title to any Property constituting real estate of the
Borrower or its Subsidiaries, which defects, irregularities or deficiencies have been cured
by possession under applicable statues of limitation;

     (t) Any interest or title of a lessor under any lease entered into by the Borrower or
any other Subsidiary in the ordinary course of its business and covering only the assets so
leased;

     (u) Liens in favor of collecting or payor banks having a right of setoff, revocation,
refund or chargeback with respect to money or instruments of the Borrower or any of its
Subsidiaries on deposit with or in possession of such bank;

     (v) Liens upon Retail Property not constituting collateral under the Revolving Credit
Facility Documentation (as in effect on the date hereof);

     (w) Liens in favor of counterparties arising in connection with the Borrower’s or any
Subsidiary’s commodity hedging activities, including, without limitation, hydrocarbon
hedging; and

     (x) Liens securing Indebtedness incurred pursuant to Section 6.2(g); provided, that
none of the Borrower’s or any Subsidiary’s Property, other than Petroleum Inventory directly
acquired through the use of those Letters of Credit described in Section 6.2(g), shall be
subject to any such Lien.

          6.4 Limitation on Merger. Merge or consolidate with or into any other Person, except
that a Subsidiary may merge into the Borrower or a Wholly Owned Subsidiary that is a Guarantor and
the Borrower may merge with or into any Person so long and the Borrower is the surviving Person.

          6.5 Limitation on Disposition of Property. Dispose of any of its Property (including,
without limitation, receivables and leasehold interests), whether now owned or hereafter acquired,
or, in the case of any Subsidiary, issue or sell any shares of such Subsidiary’s Capital Stock to
any Person, except:

     (a) the Disposition of obsolete or worn out property, property no longer used in the
business of the Borrower or its Subsidiaries, or other assets, in each case in the ordinary
course of business;

     (b) the sale of inventory in the ordinary course of business;

     (c) the sale or issuance of any Subsidiary’s Capital Stock to the Borrower or any
Guarantor;

 

43

     (d) Dispositions required as a condition to the receipt of any Governmental Approval
required in connection with the Shell Acquisition; and

     (e) any Asset Sale, provided, that (i) the Property is sold at fair market
value, (ii) at least 75% of the proceeds thereof are in the form of (A) cash and Cash
Equivalents, (B) controlling interests in Capital Stock of any one or more Persons that own
or control assets or property used or useful in the business of the Borrower or any of the
Guarantors, or (C) assets or properties used or useful in the business of the Borrower or
any of the Guarantors, and (iii) the requirements of Section 2.6(b) are complied with in
connection therewith.

          6.6 Limitation on Restricted Payments. Declare or pay any dividend on, or make any payment on account of, or set apart assets for
a sinking or other analogous fund for, the purchase, redemption, defeasance, retirement or other
acquisition of, any Capital Stock of the Borrower or any Subsidiary, whether now or hereafter
outstanding, or make any other distribution in respect thereof, either directly or indirectly,
whether in cash or property or in obligations of the Borrower or any Subsidiary, or enter into any
derivatives or other transaction with any financial institution, commodities or stock exchange or
clearinghouse (a “Derivatives Counterparty”) obligating the Borrower or any Subsidiary to
make payments to such Derivatives Counterparty as a result of any change in market value of any
such Capital Stock (collectively, “Restricted Payments”), except that, so long as no
Default or Event of Default shall have occurred and be continuing, the Borrower may make Restricted
Payments in an aggregate amount prior to the Maturity Date of up to $100,000,000.

          6.7 Limitation on Investments. Make any Investments (including without limitation,
loans and advances to, and other Investments in, Subsidiaries), or contractual commitments
therefor, or to create any Subsidiary or to become or remain a partner in any partnership or joint
venture, or to make any Acquisition of any Person, except:

     (a) Cash Equivalents;

     (b) Existing Investments in Guarantors and other Investments in existence on the date
hereof and described in Schedule 6.7(b);

     (c) The Shell Acquisition;

     (d) Other Acquisitions or Investments meeting the following requirements, or otherwise
approved by the Required Lenders (each such Acquisition or Investment constituting a
“Permitted Acquisition”):

     (i) immediately before and after the consummation of such Acquisition or
Investment, no Default or Unmatured Default shall have occurred and be continuing or
would result from such Acquisition or Investment, and the representation and
warranty contained in Section 3.11 shall be true both before and after giving effect
to such Acquisition or Investment;

     (ii) such Acquisition or Investment is consummated on a non-hostile basis
pursuant to a negotiated acquisition agreement approved by the board of directors or
other applicable governing body of the seller or entity to be acquired,

 

44

and no
material challenge to such Acquisition or Investment (excluding the exercise of
appraisal rights) shall be pending by any shareholder or director of the seller or
entity to be acquired;

     (iii) immediately before and after making such Acquisition or Investment, on a
pro forma basis (x) Excess Availability (as defined in the Revolving Credit Facility
Documentation as in effect on the date hereof) equals or exceeds 20% of the
Borrowing Base (as defined in the Revolving Credit Facility Documentation as in
effect on the date hereof) then in effect and shall remain equal
to or in excess of 20% for the remainder of the day on which said Acquisition
or Investment is made, and (y) the Consolidated Indebtedness to Capitalization Ratio
as calculated in Section 6.1(a) for the quarter most recently ended does not exceed
0.60 to 1.00; and

     (iv) with respect to each Permitted Acquisition for which the consideration
paid exceeds $100,000,000, the Borrower shall provide notice thereof to the Agent at
least thirty (30) days prior to the consummation thereof and, promptly after Agent’s
request therefor, Borrower shall deliver to Agent all material agreements, documents
and instruments in respect of such Permitted Acquisition, including, without
limitation, the purchase, sale or transfer agreements therefor, and pro forma
financial information necessary to determine the Borrower’s and its Subsidiaries’
compliance with the terms of this Agreement after giving effect to such Permitted
Acquisition.

          6.8 Limitation on Transactions with Affiliates. Enter into any transaction
(including, without limitation, the purchase or sale of any Property or service) with, or make any
payment or transfer to, any Affiliate (other than the Borrower and its Subsidiaries) except in the
ordinary course of business and pursuant to the reasonable requirements of the Borrower’s or such
Subsidiary’s business and upon fair and reasonable terms no less favorable to the Borrower or such
Subsidiary than the Borrower or such Subsidiary would obtain in a comparable arm’s-length
transaction.

          6.9 Limitation on Subsidiary Covenants. Create or otherwise cause to become effective
any consensual encumbrance or restriction of any kind on the ability of any Subsidiary (i) to pay
dividends or make any other distribution on its stock, (ii) to pay any Indebtedness or other
obligation owed to the Borrower or any other Subsidiary, (iii) to make loans or advances or other
Investments in the Borrower or any other Subsidiary, or (iv) to sell, transfer or otherwise convey
any of its property to the Borrower or any other Subsidiary.

          6.10 Limitation on Contingent Obligations. Make or suffer to exist any Contingent
Obligation (including, without limitation, any Contingent Obligation with respect to the
obligations of a Subsidiary), except (i) by endorsement of instruments for deposit or collection in
the ordinary course of business, (ii) the Guarantees, (iii) Contingent Obligations under the
Revolving Credit Facility Documentation (as in effect on the date hereof), (iv) Contingent
Obligations arising in connection with Indebtedness permitted under Section 6.2 and (v) Contingent
Obligations in respect of obligations (other than Indebtedness) entered into in the ordinary course
of business.

 

45

          6.11 Limitation on Financial Contracts. Enter into or remain liable upon any Rate
Management Transactions except for those entered into in the ordinary course of business for bona
fide hedging purposes and not for speculative purposes.

          6.12 Limitation on Repayment of Indebtedness. Make any amendment or modification to
any indenture, note agreement or other agreement, document or instrument evidencing or governing
Subordinated Indebtedness or directly or indirectly voluntarily prepay, defease, or in substance
defease, purchase, redeem, retire, or otherwise acquire, any Indebtedness unless, with respect to a
prepayment, defeasance, purchase, redemption, retirement or acquisition, immediately before and
after giving effect thereto the Indebtedness Prepayments Conditions (as defined in the Revolving
Credit Agreement as in effect on the date hereof) have been satisfied.

          6.13 Limitation on Multiemployer Plans. Except as provided in Schedule 3.9, become a
party to a Multiemployer Plan.

SECTION 7. EVENTS OF DEFAULT

          If any of the following events shall occur and be continuing:

     (a) Any representation or warranty made or deemed made by or on behalf of the Borrower
or any of its Subsidiaries to the Lenders or the Administrative Agent under or in connection
with this Agreement, any Loan, or any certificate or information delivered in connection
with this Agreement or any other Loan Document shall be false in any material respect on the
date as of which made or deemed made.

     (b) Nonpayment of (i) principal of any Loan when due, or (ii) interest upon any Loan,
or other Obligations under any of the Loan Documents within three (3) Business Days after
such interest or other Obligation becomes due.

     (c) The breach by the Borrower of any of the terms or provisions of Section 2.6, 5.5,
5.12, 6.2, 6.4, 6.5, 6.6, 6.7, 6.8, 6.11, 6.12 or 6.13.

     (d) The breach by the Borrower (other than a breach which constitutes a Default under
another Section of this Section 7) of:

     (i) Section 6.3 and such breach is not remedied within five (5) Business Days
of the earlier to occur of (x) written notice from the Administrative Agent or any
Lender to the Borrower or (y) an Authorized Officer otherwise has knowledge of any
such breach;

     (ii) Section 5.1(a), 5.1(b), 5.1(c), 5.1(d), 5.4 or 5.7 and such breach is not
remedied within ten (10) Business Days of written notice from the Agent or any
Lender to the Borrower; or

     (iii) any of the other terms or provisions of this Agreement or any Loan
Document which is not remedied within thirty (30) Business Days after the earlier to
occur of (x) written notice from the Administrative Agent or any Lender to the

 

46

Borrower or (y) an Authorized Officer otherwise has knowledge of any such breach.

     (e) Failure of the Borrower or any of its Subsidiaries to pay when due any Material
Indebtedness; or the default by the Borrower or any of its Subsidiaries in the performance
(beyond the applicable grace period with respect thereto, if any) of any term, provision or
condition contained in any Material Indebtedness Agreement, or any other event shall occur
or condition exist, the effect of which default, event or condition is to cause, or to
permit the holder(s) of such Material Indebtedness or the lender(s) under any Material
Indebtedness Agreement to cause, such Material Indebtedness to become due prior to its
stated maturity or any commitment to lend under any Material Indebtedness Agreement to be
terminated prior to its stated expiration date; or any Material Indebtedness of the Borrower
or any of its Subsidiaries shall be declared to be due and payable or required to be prepaid
or repurchased (other than by a regularly scheduled payment) prior to the stated maturity
thereof; or the Borrower or any of its Subsidiaries shall not pay, or admit in writing its
inability to pay, its debts generally as they become due.

     (f) The Borrower or any of its Subsidiaries shall (i) have an order for relief entered
with respect to it under the Federal bankruptcy laws as now or hereafter in effect, (ii)
make an assignment for the benefit of creditors, (iii) apply for, seek, consent to, or
acquiesce in, the appointment of a receiver, custodian, trustee, examiner, liquidator or
similar official for it or any Substantial Portion of its Property, (iv) institute any
proceeding seeking an order for relief under the Federal bankruptcy laws as now or hereafter
in effect or seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution,
winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its
debts under any law relating to bankruptcy, insolvency or reorganization or relief of
debtors or fail to file an answer or other pleading denying the material allegations of any
such proceeding filed against it, (v) take any corporate or partnership action to authorize
or effect any of the foregoing actions set forth in this clause (f) or (vi) fail to contest
in good faith any appointment or proceeding described in clause (g).

     (g) Without the application, approval or consent of the Borrower or any of its
Subsidiaries, a receiver, trustee, examiner, liquidator or similar official shall be
appointed for the Borrower or any of its Subsidiaries or any Substantial Portion of its
Property, or a proceeding described in clause (f)(iv) shall be instituted against the
Borrower or any of its Subsidiaries and such appointment continues undischarged or such
proceeding continues undismissed or unstayed for a period of 45 consecutive days.

     (h) Any court, government or governmental agency shall condemn, seize or otherwise
appropriate, or take custody or control of, all or any portion of the Property of the
Borrower and its Subsidiaries which, when taken together with all other Property of the
Borrower and its Subsidiaries so condemned, seized, appropriated, or taken custody or
control of, during the twelve-month period ending with the month in which any such action
occurs, constitutes a Substantial Portion.

     (i) The Borrower or any of its Subsidiaries shall fail within 30 days to pay, bond or
otherwise discharge one or more (i) judgments or orders for the payment of money in

 

47

excess
of $30,000,000 (or the equivalent thereof in currencies other than Dollars) in the
aggregate, or (ii) nonmonetary judgments or orders which, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect, which judgment(s), in any
such case, is/are not stayed on appeal or otherwise being appropriately contested in
good faith.

     (j) The Unfunded Liabilities of all Single Employer Plans shall exceed $75,000,000 in
the aggregate, or any Reportable Event shall occur in connection with any Plan.

     (k) Any Change of Control shall occur.

     (l) The Borrower or any of its Subsidiaries shall (i) be the subject of any proceeding
or investigation pertaining to the release by the Borrower, any of its Subsidiaries or any
other Person of any toxic or hazardous waste or substance into the environment, or (ii)
violate any Environmental Law, which, in the case of an event described in clause (i) or
clause (ii), would reasonably be expected to result in a Material Adverse Effect.

     (m) Any Loan Document shall fail to remain in full force or effect or any action shall
be taken by the Borrower or any Guarantor to discontinue or to assert the invalidity or
unenforceability of any Loan Document or any Lien in favor of the Administrative Agent under
the Loan Documents, or such Lien shall not have the priority contemplated by the Loan
Documents.

     (n) An event (such event, an “Off-Balance Sheet Trigger Event”) shall occur
which (i) permits the investors or purchasers in respect of Off-Balance Sheet Liabilities of
the Borrower or any Affiliate of the Borrower to require the amortization or liquidation of
such Off-Balance Sheet Liabilities and (x) such Off-Balance Sheet Trigger Event shall not be
remedied or waived within the later to occur of the tenth day after the occurrence thereof
or the expiry date of any grace period related thereto under the agreement evidencing such
Off-Balance Sheet Liabilities, or (y) such investors shall require the amortization or
liquidation of such Off-Balance Sheet Liabilities as a result of such Off-Balance Sheet
Trigger Event, (ii) results in the termination of reinvestments of collections or proceeds
of receivables and related assets under the agreements evidencing such Off-Balance Sheet
Liabilities other than as a result of the termination or expiration of the agreement
creating such Off-Balance Sheet Liability upon maturity, or (iii) causes or otherwise
permits the replacement or substitution of the Borrower or any Affiliate thereof as the
servicer under the agreements evidencing such Off-Balance Sheet Liabilities;
provided, however, that this clause (n) shall not apply on any date with
respect to any voluntary request by the Borrower or an Affiliate thereof for an
above-described amortization, liquidation, or termination of reinvestments so long as the
aforementioned investors or purchasers cannot independently require on such date such
amortization, liquidation or termination of reinvestments.

then, and in any such event, (A) if such event is an Event of Default specified in clause (i) or
(ii) of paragraph (f) above with respect to the Borrower, automatically the Loans hereunder (with
accrued interest thereon) and all other amounts owing under this Agreement and the other Loan

 

48

Documents shall immediately become due and payable, and (B) if such event is any other Event of
Default, with the consent of the Required Lenders, the Administrative Agent may, or upon the
request of the Required Lenders, the Administrative Agent shall, by notice to the Borrower,
declare the Loans hereunder (with accrued interest thereon) and all other amounts owing under this
Agreement and the other Loan Documents to be due and payable forthwith, whereupon the same shall
immediately become due and payable.

SECTION 8. GUARANTEE

          8.1 Guarantee(a) . (a) The Guarantors hereby, jointly and severally, unconditionally
and irrevocably, guarantee to the Administrative Agent, for the ratable benefit of the Lenders and
their respective successors, indorsees, transferees and assigns, the prompt and complete payment by
the Borrower when due (whether at the stated maturity, by acceleration or otherwise) of the
Obligations.

          (b) Anything herein or in any other Loan Document to the contrary notwithstanding, the maximum
liability of each Guarantor hereunder and under the other Loan Documents shall in no event exceed
the amount which can be guaranteed by such Guarantor under applicable federal and state laws
relating to the insolvency of debtors (after giving effect to the right of contribution established
in Section 8.2).

          (c) Each Guarantor agrees that the Obligations may at any time and from time to time exceed
the amount of the liability of such Guarantor hereunder without impairing the guarantee contained
in this Section 8 or affecting the rights and remedies of the Agents or any Lender hereunder.

          (d) The guarantee contained in this Section 8 shall remain in full force and effect until all
the Obligations and the obligations of each Guarantor under the guarantee contained in this Section
8 shall have been satisfied by payment in full, notwithstanding that from time to time during the
term of this Agreement the Borrower may be free from any of its Obligations.

          (e) No payment made by the Borrower, any of the Guarantors, any other guarantor or any other
Person or received or collected by any Agent or any Lender from the Borrower, any of the
Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any
set-off or appropriation or application at any time or from time to time in reduction of or in
payment of the Obligations shall be deemed to modify, reduce, release or otherwise affect the
liability of any Guarantor hereunder which shall, notwithstanding any such payment (other than any
payment made by such Guarantor in respect of the Obligations or any payment received or collected
from such Guarantor in respect of the Obligations), remain liable for the Obligations up to the
maximum liability of such Guarantor hereunder until the Obligations are paid in full.

          8.2 Right of Contribution. Each Guarantor hereby agrees that to the extent that a
Guarantor shall have paid more than its proportionate share of any payment made hereunder, such
Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor
hereunder which has not paid its proportionate share of such payment. Each Guarantor’s right of
contribution shall be subject to the terms and conditions of Section 8.3. The provisions of this
Section 8.2 shall in no respect limit the obligations and liabilities of any

 

49

Guarantor to the
Agents and the Lenders, and
each Guarantor shall remain liable to the Agents and the Lenders for the full amount
guaranteed by such Guarantor hereunder.

          8.3 No Subrogation. Notwithstanding any payment made by any Guarantor hereunder or
any set-off or application of funds of any Guarantor by any Agent or any Lender, no Guarantor shall
be entitled to be subrogated to any of the rights of any Agent or any Lender against the Borrower
or any other Guarantor or any guarantee or right of offset held by any Agent or any Lender for the
payment of the Obligations, nor shall any Guarantor seek or be entitled to seek any contribution or
reimbursement from the Borrower or any other Guarantor in respect of payments made by such
Guarantor hereunder, until all amounts owing to the Agents and the Lenders by the Borrower on
account of the Obligations are paid in full. If any amount shall be paid to any Guarantor on
account of such subrogation rights at any time when all of the Obligations shall not have been paid
in full, such amount shall be held by such Guarantor in trust for the Agents and the Lenders,
segregated from other funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor,
be turned over to the Administrative Agent in the exact form received by such Guarantor (duly
indorsed by such Guarantor to the Administrative Agent, if required), to be applied against the
Obligations, whether matured or unmatured, in such order as the Administrative Agent may determine.

          8.4 Amendments, etc. with respect to the Obligations. Each Guarantor shall remain
obligated hereunder notwithstanding that, without any reservation of rights against any Guarantor
and without notice to or further assent by any Guarantor, any demand for payment of any of the
Obligations made by any Agent or any Lender may be rescinded by such Agent or such Lender and any
of the Obligations continued, and the Obligations, or the liability of any other Person upon or for
any part thereof, or any guarantee therefor or right of offset with respect thereto, may, from time
to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised,
waived, surrendered or released by any Agent or any Lender, and this Agreement and the other Loan
Documents and any other documents executed and delivered in connection therewith may be amended,
modified, supplemented or terminated, in whole or in part, as the Administrative Agent (or the
Required Lenders or all Lenders, as the case may be) may deem advisable from time to time, and any
guarantee or right of offset at any time held by any Agent or any Lender for the payment of the
Obligations may be sold, exchanged, waived, surrendered or released. Neither the Agents nor any
Lender shall have any obligation to protect, secure, perfect or insure any Lien at any time held by
it as security for the Obligations or for the guarantee contained in this Section 8 or any property
subject thereto.

          8.5 Guarantee Absolute and Unconditional. Each Guarantor waives any and all notice of
the creation, renewal, extension or accrual of any of the Obligations and notice of or proof of
reliance by any Agent or any Lender upon the guarantee contained in this Section 8 or acceptance of
the guarantee contained in this Section 8; the Obligations, and any of them, shall conclusively be
deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in
reliance upon the guarantee
contained in this Section 8; and all dealings between the Borrower and any of the Guarantors,
on the one hand, and the Agents and the Lenders, on the other hand, likewise shall be conclusively
presumed to have been had or consummated in reliance upon the guarantee contained in this Section
8. Each Guarantor waives diligence, presentment, protest, demand for payment and notice of default
or nonpayment to or upon the Borrower or any of the Guarantors with respect to the Obligations.
Each Guarantor understands

 

50

and agrees that the guarantee contained in this Section 8 shall be
construed as a continuing, absolute and unconditional guarantee of payment without regard to (1)
the validity or enforceability of any other provision of this Agreement or any other Loan Document,
any of the Obligations or any guarantee or right of offset with respect thereto at any time or from
time to time held by any Agent or any Lender, (2) any defense, set-off or counterclaim (other than
a defense of payment or performance) which may at any time be available to or be asserted by the
Borrower or any other Person against any Agent or any Lender, or (3) any other circumstance
whatsoever (with or without notice to or knowledge of the Borrower or such Guarantor) which
constitutes, or might be construed to constitute, an equitable or legal discharge of the Borrower
for the Obligations, or of such Guarantor under the guarantee contained in this Section 8, in
bankruptcy or in any other instance. When making any demand hereunder or otherwise pursuing its
rights and remedies hereunder against any Guarantor, any Agent or any Lender may, but shall be
under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it
may have against the Borrower, any other Guarantor or any other Person or against any guarantee for
the Obligations or any right of offset with respect thereto, and any failure by any Agent or any
Lender to make any such demand, to pursue such other rights or remedies or to collect any payments
from the Borrower, any other Guarantor or any other Person or to realize upon any such guarantee or
to exercise any such right of offset, or any release of the Borrower, any other Guarantor or any
other Person or any such guarantee or right of offset, shall not relieve any Guarantor of any
obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether
express, implied or available as a matter of law, of any Agent or any Lender against any Guarantor.
For the purposes hereof “demand” shall include the commencement and continuance of any legal
proceedings.

          8.6 Reinstatement. The guarantee contained in this Section 8 shall continue to be
effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of
any of the Obligations is rescinded or must otherwise be restored or returned by any Agent or any
Lender upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Borrower
or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or
conservator of, or trustee or similar officer for, the Borrower or any Guarantor or any substantial
part of its property, or otherwise, all as though such payments had not been made.

          8.7 Payments. Each Guarantor hereby guarantees that payments hereunder will be paid
to the Administrative Agent without set-off or counterclaim in Dollars at the Payment Office.

SECTION 9. THE AGENTS

          9.1 Appointment. Each Lender hereby irrevocably designates and appoints the Agents as
the agents of such Lender under this Agreement and the other Loan Documents, and each Lender
irrevocably authorizes each Agent, in such capacity, to take such action on its behalf under the
provisions of this Agreement and the other Loan Documents and to exercise such powers and perform
such duties as are expressly delegated to such Agent by the terms of this Agreement and the other
Loan Documents, together with such other powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary elsewhere in this Agreement, no Agent shall have any
duties or responsibilities, except those expressly set forth herein, or any fiduciary

 

51

relationship
with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against
any Agent.

          9.2 Delegation of Duties. Each Agent may execute any of its duties under this
Agreement and the other Loan Documents by or through agents or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such duties. No Agent shall be
responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by it with
reasonable care.

          9.3 Exculpatory Provisions. Neither any Agent nor any of its officers, directors,
employees, agents, attorneys-in-fact or affiliates shall be (i) liable for any action lawfully
taken or omitted to be taken by it or such Person under or in connection with this Agreement or any
other Loan Document (except to the extent that any of the foregoing are found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted from its or such
Person’s own gross negligence or willful misconduct) or (ii) responsible in any manner to any of
the Lenders for any recitals, statements, representations or warranties made by any Loan Party or
any officer thereof contained in this Agreement or any other Loan Document or in any certificate,
report, statement or other document referred to or provided for in, or received by the Agents under
or in connection with, this Agreement or any other Loan Document or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan
Document or for any failure of any Loan Party to perform its obligations hereunder or thereunder.
The Agents shall not be under any obligation to any Lender to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions of, this Agreement
or any other Loan Document, or to inspect the properties, books or records of any Loan Party.

          9.4 Reliance by Agents. Each Agent shall be entitled to rely, and shall be fully
protected in relying, upon any instrument, writing, resolution, notice, consent, certificate,
affidavit, letter, telecopy, telex or teletype message, statement, order or other document or
conversation believed by it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons and upon advice and statements of legal counsel (including, without
limitation, counsel to the Loan Parties),
independent accountants and other experts selected by such Agent. The Agents may deem and
treat the payee of any Note as the owner thereof for all purposes unless such Note shall have been
transferred in accordance with Section 10.6 and all actions required by such Section in connection
with such transfer shall have been taken. Each Agent shall be fully justified in failing or
refusing to take any action under this Agreement or any other Loan Document unless it shall first
receive such advice or concurrence of the Required Lenders (or, if so specified by this Agreement,
all Lenders or any other instructing group of Lenders specified by this Agreement) as it deems
appropriate or it shall first be indemnified to its satisfaction by the Lenders against any and all
liability and expense that may be incurred by it by reason of taking or continuing to take any such
action. Each Agent shall in all cases be fully protected in acting, or in refraining from acting,
under this Agreement and the other Loan Documents in accordance with a request of the Required
Lenders (or, if so specified by this Agreement, all Lenders or any other instructing group of
Lenders specified by this Agreement), and such request and any action taken or failure to act
pursuant thereto shall be binding upon all the Lenders and all future holders of the Loans.

 

52

          9.5 Notice of Default. No Agent shall be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default hereunder unless such Agent shall have received
notice from a Lender or the Borrower referring to this Agreement, describing such Default or Event
of Default and stating that such notice is a “notice of default”. In the event that the
Administrative Agent shall receive such a notice, the Administrative Agent shall give notice
thereof to the Lenders. The Administrative Agent shall take such action with respect to such
Default or Event of Default as shall be reasonably directed by the Required Lenders (or, if so
specified by this Agreement, all Lenders or any other instructing group of Lenders specified by
this Agreement); provided that unless and until the Administrative Agent shall have
received such directions, the Administrative Agent may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interests of the Lenders.

          9.6 Non-Reliance on Agents and Other Lenders. Each Lender expressly acknowledges that
neither any of the Agents nor any of their respective officers, directors, employees, agents,
attorneys-in-fact or affiliates have made any representations or warranties to it and that no act
by any Agent hereafter taken, including any review of the affairs of a Loan Party or any affiliate
of a Loan Party, shall be deemed to constitute any representation or warranty by any Agent to any
Lender. Each Lender represents to the Agents that it has, independently and without reliance upon
any Agent or any other Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Loan Parties and their affiliates and
made its own decision to make its Loans hereunder and enter into this Agreement. Each Lender also
represents that it will, independently and without reliance upon any Agent or any other Lender, and
based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit analysis, appraisals and decisions in taking or not taking action under this
Agreement and the other Loan Documents, and to make such investigation as it deems necessary to
inform itself as to the business, operations, property, financial and other condition and
creditworthiness of the
Loan Parties and their affiliates. Except for notices, reports and other documents expressly
required to be furnished to the Lenders by the Administrative Agent hereunder, no Agent shall have
any duty or responsibility to provide any Lender with any credit or other information concerning
the business, operations, property, condition (financial or otherwise), prospects or
creditworthiness of any Loan Party or any affiliate of a Loan Party that may come into the
possession of such Agent or any of its officers, directors, employees, agents, attorneys-in-fact or
affiliates.

          9.7 Indemnification. The Lenders agree to indemnify each Agent in its capacity as
such (to the extent not reimbursed by the Borrower and without limiting the obligation of the
Borrower to do so), ratably according to their respective Aggregate Exposure Percentages in effect
on the date on which indemnification is sought under this Section (or, if indemnification is sought
after the date upon which the Loans shall have been paid in full, ratably in accordance with such
Aggregate Exposure Percentages immediately prior to such date), for, and to save each Agent
harmless from and against, any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any
time (including, without limitation, at any time following the payment of the Loans) be imposed on,
incurred by or asserted against such Agent in any way relating to or arising out of, the
Commitments, this Agreement, any of the other Loan Documents or any documents contemplated

 

53

by or
referred to herein or therein or the transactions contemplated hereby or thereby or any action
taken or omitted by such Agent under or in connection with any of the foregoing; provided
that no Lender shall be liable for the payment of any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements that are
found by a final and nonappealable decision of a court of competent jurisdiction to have resulted
from such Agent’s gross negligence or willful misconduct. The agreements in this Section shall
survive the payment of the Loans and all other amounts payable hereunder.

          9.8 Agent in Its Individual Capacity. Each Agent and its affiliates may make loans
to, accept deposits from and generally engage in any kind of business with any Loan Party as though
such Agent were not an Agent. With respect to its Loans made or renewed by it, each Agent shall
have the same rights and powers under this Agreement and the other Loan Documents as any Lender and
may exercise the same as though it were not an Agent, and the terms “Lender” and “Lenders” shall
include each Agent in its individual capacity.

          9.9 Successor Administrative Agent. The Administrative Agent may resign as
Administrative Agent upon 10 days’ notice to the Lenders and the Borrower. If the Administrative
Agent shall resign as Administrative Agent under this Agreement and the other Loan Documents, then
the Required Lenders shall appoint from among the Lenders a successor agent for the Lenders, which
successor agent shall (unless an Event of Default under Section 7(a) or Section 7(f) with respect
to the Borrower shall have occurred and be continuing) be subject to approval by the Borrower
(which approval shall not be unreasonably withheld or delayed), whereupon such successor agent
shall succeed to the rights,
powers and duties of the Administrative Agent, and the term “Administrative Agent” shall mean
such successor agent effective upon such appointment and approval, and the former Administrative
Agent’s rights, powers and duties as Administrative Agent shall be terminated, without any other or
further act or deed on the part of such former Administrative Agent or any of the parties to this
Agreement or any holders of the Loans. If no successor agent has accepted appointment as
Administrative Agent by the date that is 10 days following a retiring Administrative Agent’s notice
of resignation, the retiring Administrative Agent’s resignation shall nevertheless thereupon become
effective, and the Lenders shall assume and perform all of the duties of the Administrative Agent
hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided
for above. The Syndication Agent may, at any time, by notice to the Lenders and the Administrative
Agent, resign as Syndication Agent hereunder, whereupon the duties, rights, obligations and
responsibilities of the Syndication Agent hereunder shall automatically be assumed by, and inure to
the benefit of, the Administrative Agent, without any further act by the Syndication Agent, the
Administrative Agent or any Lender. After any retiring Agent’s resignation as Agent, the
provisions of this Section 8 shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Agent under this Agreement and the other Loan Documents.

          9.10 Authorization to Release Guarantees. The Administrative Agent is hereby
irrevocably authorized by each of the Lenders to effect any release of Guarantees contemplated by
Section 10.15.

          9.11 The Arrangers. The Arrangers, in their respective capacities as such, shall
have no duties or responsibilities, nor shall any such Person incur any liability, under this
Agreement and the other Loan Documents.

 

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SECTION 10. MISCELLANEOUS

          10.1 Amendments and Waivers. Neither this Agreement or any other Loan Document, nor
any terms hereof or thereof may be amended, supplemented or modified except in accordance with the
provisions of this Section 10.1. The Required Lenders and each Loan Party party to the relevant
Loan Document may, or (with the written consent of the Required Lenders) the Agents and each Loan
Party party to the relevant Loan Document may, from time to time, (a) enter into written
amendments, supplements or modifications hereto and to the other Loan Documents (including
amendments and restatements hereof or thereof) for the purpose of adding any provisions to this
Agreement or the other Loan Documents or changing in any manner the rights of the Lenders or of the
Loan Parties hereunder or thereunder or (b) waive, on such terms and conditions as may be specified
in the instrument of waiver, any of the requirements of this Agreement or the other Loan Documents
or any Default or Event of Default and its consequences; provided, however, that no
such waiver and no such amendment, supplement or modification shall:

     (i) forgive the principal amount or extend the final scheduled date of maturity
of any Loan, extend the scheduled date of any amortization payment in
respect of any Loan, reduce the stated rate of any interest or fee payable
under this Agreement (except (x) in connection with the waiver of applicability of
any post-default increase in interest rates (which waiver shall be effective with
the consent of the Required Lenders) and (y) that any amendment or modification of
defined terms used in the financial covenants in this Agreement shall not constitute
a reduction in the rate of interest or fees for purposes of this clause (i)) or
extend the scheduled date of any payment thereof, or increase the amount or extend
the expiration date of any Commitment of any Lender, or release all or substantially
all of the Guarantors from their Guarantees, in each case without the consent of
each Lender directly affected thereby;

     (ii) amend, modify or waive any provision of this Section or reduce any
percentage specified in the definition of Required Lenders, or consent to the
assignment or transfer by the Borrower of any of its rights and obligations under
this Agreement and the other Loan Documents, in each case without the consent of all
the Lenders;

     (iii) amend, modify or waive any provision of Section 8, or any other provision
affecting the rights, duties or obligations of any Agent, without the consent of any
Agent directly affected thereby;

     (iv) amend, modify or waive any provision of Section 2.12 without the consent
of each Lender directly affected thereby;

     (v) impose restrictions on assignments and participations that are more
restrictive than, or additional to, those set forth in Section 10.6.

Any such waiver and any such amendment, supplement or modification shall apply equally to each of
the Lenders and shall be binding upon the Loan Parties, the Lenders, the Agents and all future

 

55

holders of the Loans. In the case of any waiver, the Loan Parties, the Lenders and the Agents
shall be restored to their former position and rights hereunder and under the other Loan Documents,
and any Default or Event of Default waived shall be deemed to be cured and not continuing; but no
such waiver shall extend to any subsequent or other Default or Event of Default, or impair any
right consequent thereon. Any such waiver, amendment, supplement or modification shall be effected
by a written instrument signed by the parties required to sign pursuant to the foregoing provisions
of this Section; provided, that delivery of an executed signature page of any such
instrument by facsimile transmission shall be effective as delivery of a manually executed
counterpart thereof.

          For the avoidance of doubt, this Agreement and any other Loan Document may be amended (or
amended and restated) with the written consent of the Required Lenders, the Administrative Agent
and each Loan Party to each relevant Loan Document (x) to add one or more additional credit
facilities to this Agreement and to permit the extensions of credit from time to time outstanding
thereunder and the accrued interest and fees in respect thereof (collectively, the “Additional
Extensions of Credit”) to share ratably in the benefits of this Agreement and the other Loan
Documents with the Loans and the accrued interest and fees in respect thereof and (y) to include
appropriately the Lenders of any additional extensions of credit in any determination of the
Required Lenders; provided, however, that no such amendment shall permit the
Additional Extensions of Credit to share ratably with or with preference to the Loans in the
application of mandatory prepayments without the consent of the Required Lenders.

          10.2 Notices. All notices, requests and demands to or upon the respective parties
hereto to be effective shall be in writing (including by telecopy), and, unless otherwise expressly
provided herein, shall be deemed to have been duly given or made when delivered, or three Business
Days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when
received, addressed (a) in the case of the Borrower and the Agents, as follows and (b) in the case
of the Lenders, as set forth in an administrative questionnaire delivered to the Administrative
Agent or, in the case of a Lender which becomes a party to this Agreement pursuant to an Assignment
and Acceptance, in such Assignment and Acceptance or (c) in the case of any party, to such other
address as such party may hereafter notify to the other parties hereto:

	 	 	 	 	 
	 

	 	The Borrower:
	 	Tesoro Corporation
	 

	 	 	 	300 Concord Plaza Drive
	 

	 	 	 	San Antonio, TX 78216
	 

	 	 	 	Attention: Chief Financial Officer
	 

	 	 	 	(with a copy to General Counsel)
	 

	 	 	 	Telecopy: 210-283-2345
	 

	 	 	 	Telephone: 210-283-2440
	 
	 	 	 	 
	 

	 	The Administrative Agent:
	 	Lehman Commercial Paper Inc.
	 

	 	 	 	745 Seventh Avenue, 16th Floor
	 

	 	 	 	New York, New York 10019
	 

	 	 	 	Attention: Maritza Ospina
	 

	 	 	 	Telecopy: 646-758-4648
	 

	 	 	 	Telephone: 212-526-6590

 

56

	 	 	 	 	 
	 

	 	The Syndication Agent:
	 	JPMorgan Chase Bank, National Association
	 

	 	 	 	10 South Dearborn, 7th Floor
	 

	 	 	 	Chicago, IL 60603-2003
	 

	 	 	 	Attention: Cely Navarro
	 

	 	 	 	Telecopy: 312-385-7107
	 

	 	 	 	Telephone: 312-385-7058

provided that any notice, request or demand to or upon any Agent or any Lender shall not be
effective until received.

          Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative Agent;
provided that the foregoing shall not apply to notices pursuant to Section 2 unless
otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent
or the Borrower 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.

          10.3 No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of any Agent or any Lender, any right, remedy, power or privilege hereunder
or under the other Loan Documents shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege. The rights,
remedies, powers and privileges herein provided are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by law.

          10.4 Survival of Representations and Warranties. All representations and warranties
made herein, in the other Loan Documents and in any document, certificate or statement delivered
pursuant hereto or in connection herewith shall survive the execution and delivery of this
Agreement and the making of the Loans and other extensions of credit hereunder.

          10.5 Payment of Expenses. The Borrower agrees (a) to pay or reimburse the Agents and
Arrangers for all their reasonable out-of-pocket costs and expenses incurred in connection with the
syndication of the Facility (other than fees payable to syndicate members) and the development,
preparation and execution of, and any amendment, supplement, waiver or modification to, this
Agreement and the other Loan Documents and any other documents prepared in connection herewith or
therewith, and the consummation and administration of the transactions contemplated hereby and
thereby, including, without limitation, the reasonable fees and disbursements and other charges of
Simpson Thacher & Bartlett LLP and the charges of Intralinks, (b) to pay or reimburse each Lender
and the Agents for all their costs and expenses incurred in connection with the enforcement or
preservation of any rights under this Agreement, the other Loan Documents and any other documents
prepared in connection herewith or therewith, including, without limitation, the fees and
disbursements of counsel (including the allocated fees and disbursements and other charges of
in-house counsel) to each Lender and of counsel to the Agents, (c) to pay, indemnify, or reimburse
each Lender and the Agents for, and hold each Lender and the Agents harmless from, any and all
recording and filing fees and any and all liabilities with

 

57

respect to, or resulting from any delay
in paying, stamp, excise and other taxes, if any, which may be payable or determined to be payable
in connection with the execution and delivery of, or consummation or administration of any of the
transactions contemplated by, or any amendment, supplement or modification of, or any waiver or
consent under or in respect of, this Agreement, the other Loan Documents and any such other
documents, and (d) to pay, indemnify or reimburse each Lender, each Agent, each Arranger, their
respective affiliates, and their respective officers, directors, trustees, employees, advisors,
agents and controlling persons (each, an “Indemnitee”) for, and hold each Indemnitee
harmless from and against any and all other liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever
incurred by an Indemnitee or asserted against any Indemnitee by any third party or by the Borrower
or any other Loan 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 or thereto of their respective obligations hereunder
or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Loan
or the use or proposed use of the proceeds thereof, (iii) any actual or alleged presence or release
of Materials of Environmental Concern on or from any property owned, occupied or operated by the
Borrower or any of its Subsidiaries, or any violation of, non-compliance with or liability under
any Environmental Laws related in any way to the Borrower or any of its Subsidiaries or any or
their respective properties, or (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 any third party or by the Borrower or any other Loan Party, and regardless of
whether any Indemnitee is a party thereto (all the foregoing in this clause (d), collectively, the
“Indemnified Liabilities”), provided, that the Borrower shall have no obligation
hereunder to any Indemnitee with respect to Indemnified Liabilities to the extent such Indemnified
Liabilities (A) result from a claim brought by an Indemnitee against one or more other Indemnitees
(other than with respect to the enforcement of the indemnification obligations hereunder) or (B)
are found by a final and nonappealable decision of a court of competent jurisdiction to have
resulted from the gross negligence, willful misconduct or bad faith of such Indemnitee. No
Indemnitee shall be liable for any damages arising from the use by unauthorized persons of
Information or other materials sent through electronic, telecommunications or other information
transmission systems that are intercepted by such persons or for any special, indirect,
consequential or punitive damages in connection with the Facility. Without limiting the foregoing,
and to the extent permitted by applicable law, the Borrower agrees not to assert and to cause its
Subsidiaries not to assert, and hereby waives and agrees to cause its Subsidiaries so to waive, all
rights for contribution or any other rights of recovery with respect to all claims, demands,
penalties, fines, liabilities, settlements, damages, costs and expenses of whatever kind or nature,
under or related to Environmental Laws, that any of them might have by statute or otherwise against
any Indemnitee. All amounts due under this Section shall be payable not later than 30 days after
the Borrower’s receipt of written demand therefor and statements containing reasonable detail of
the amounts (and the nature thereof) demanded thereby. Statements payable by the Borrower pursuant
to this Section shall be submitted to Chief Financial Officer (Telephone No. 210-283-2345) (Fax No.
210-283-2440) with a copy to General Counsel, at the address of the Borrower set forth in Section
10.2, or to such other Person or address as may be hereafter designated by the Borrower in a notice
to the Administrative Agent. The agreements in this Section shall survive repayment of the Loans
and all other amounts payable hereunder.

 

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          10.6 Successors and Assigns; Participations and Assignments. (a) This Agreement
shall be binding upon and inure to the benefit of the Borrower, the Lenders, the Agents, all future
holders of the Loans and their respective successors and assigns, except that the Borrower may not
assign or transfer any of its rights or obligations under this Agreement without the prior written
consent of the Agents and each Lender.

          (b) Any Lender may, without the consent of the Borrower, in accordance with applicable law, at
any time sell to one or more banks, financial institutions or other entities (each, a
“Participant”) participating interests in any Loan owing to such Lender, any Commitment of
such Lender or any other interest of such Lender hereunder and under the other Loan Documents. In
the event of any such sale by a Lender of a participating interest to a Participant, such Lender’s
obligations under this Agreement to the other parties to this Agreement shall remain
unchanged, such Lender shall remain solely responsible for the performance thereof, such Lender
shall remain the holder of any such Loan for all purposes under this Agreement and the other Loan
Documents, and the Borrower and the Agents shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this Agreement and the other
Loan Documents. In no event shall any Participant under any such participation have any right to
approve any amendment or waiver of any provision of any Loan Document, or any consent to any
departure by any Loan Party therefrom, except to the extent that such amendment, waiver or consent
would require the consent of all Lenders or each affected Lender pursuant to Section 10.1. The
Borrower agrees that if amounts outstanding under this Agreement and the Loans are due or unpaid,
or shall have been declared or shall have become due and payable upon the occurrence of an Event of
Default, each Participant shall, to the maximum extent permitted by applicable law, be deemed to
have the right of setoff in respect of its participating interest in amounts owing under this
Agreement to the same extent as if the amount of its participating interest were owing directly to
it as a Lender under this Agreement, provided that, in purchasing such participating
interest, such Participant shall be deemed to have agreed to share with the Lenders the proceeds
thereof as provided in Section 10.7(a) as fully as if such Participant were a Lender hereunder.
The Borrower also agrees that each Participant shall be entitled to the benefits of Sections 2.13,
2.14 and 2.15 with respect to its participation in the Commitments and the Loans outstanding from
time to time as if such Participant were a Lender; provided that, in the case of Section
2.14, such Participant shall have complied with the requirements of said Section, and
provided, further, that no Participant shall be entitled to receive any greater
amount pursuant to any such Section than the transferor Lender would have been entitled to receive
in respect of the amount of the participation transferred by such transferor Lender to such
Participant had no such transfer occurred.

          (c) Any Lender (an “Assignor”) may, in accordance with applicable law and upon written
notice to the Administrative Agent, at any time and from time to time assign to any Lender, any
lender under the Revolving Credit Facility, or any affiliate or Related Fund thereof or, with the
consent of the Borrower (which shall not be unreasonably withheld or delayed), to an additional
bank, financial institution or other entity (an “Assignee”) all or any part of its rights
and obligations under this Agreement pursuant to an Assignment and Acceptance, substantially in the
form of Exhibit C, executed by such Assignee and such Assignor (and, where the consent of the
Borrower is required pursuant to the foregoing provisions, by the Borrower and such other Persons)
and delivered to the Administrative Agent for its acceptance and recording in the Register;
provided that no consent of the Borrower shall be required for any assignment if any Event
of Default has occurred and is continuing; provided, further, that no such
assignment to an

 

59

Assignee (other than any Lender or any affiliate or Related Fund thereof) shall be
in an aggregate principal amount of less than $5,000,000 (other than in the case of an assignment
of all of a Lender’s interests under this Agreement), unless otherwise agreed by the Borrower and
the Administrative Agent. Upon such execution, delivery, acceptance and recording, from and after
the effective date determined pursuant to such Assignment and Acceptance, (x) the Assignee
thereunder shall be a party hereto and, to the extent provided in such Assignment and Acceptance,
have the rights and obligations of a Lender hereunder with Commitments and/or Loans as set forth
therein, and (y) the Assignor thereunder shall, to the extent provided in such Assignment and
Acceptance, be released from its obligations under this Agreement (and, in the case of an
Assignment and Acceptance covering all of an Assignor’s rights and obligations under this
Agreement, such Assignor shall cease to be a party hereto, except as to Section 2.13, 2.14 and 10.5
in respect of the period prior to such effective date). Notwithstanding any provision of this
Section, the consent of the Borrower shall not be required for any assignment that occurs at any
time when any Event of Default shall have occurred and be continuing. For purposes of the minimum
assignment amounts set forth in this paragraph, multiple assignments by two or more Related Funds
shall be aggregated.

          (d) The Administrative Agent shall, on behalf of the Borrower, maintain at its address
referred to in Section 10.2 a copy of each Assignment and Acceptance delivered to it and a register
(the “Register”) for the recordation of the names and addresses of the Lenders and the
Commitment of, and principal amount of the Loans owing to, each Lender from time to time. The
entries in the Register shall be conclusive, in the absence of manifest error, and the Borrower,
each Agent and the Lenders shall treat each Person whose name is recorded in the Register as the
owner of the Loans and any Notes evidencing such Loans recorded therein for all purposes of this
Agreement. Any assignment of any Loan, whether or not evidenced by a Note, shall be effective only
upon appropriate entries with respect thereto being made in the Register (and each Note shall
expressly so provide). Any assignment or transfer of all or part of a Loan evidenced by a Note
shall be registered on the Register only upon surrender for registration of assignment or transfer
of the Note evidencing such Loan, accompanied by a duly executed Assignment and Acceptance;
thereupon one or more new Notes in the same aggregate principal amount shall be issued to the
designated Assignee, and the old Notes shall be returned by the Administrative Agent to the
Borrower marked “canceled”. The Register shall be available for inspection by the Borrower or any
Lender (with respect to any entry relating to such Lender’s Loans) at any reasonable time and from
time to time upon reasonable prior notice.

          (e) Upon its receipt of an Assignment and Acceptance executed by an Assignor and an Assignee
(and, in any case where the consent of any other Person is required by Section 10.6(c), by each
such other Person) together with payment to the Administrative Agent of a registration and
processing fee of $3,500 (treating multiple, simultaneous assignments by or to two or more Related
Funds as a single assignment) (unless otherwise agreed to by the Administrative Agent), the
Administrative Agent shall (i) promptly accept such Assignment and Acceptance and (ii) on the
effective date determined pursuant thereto record the information contained therein in the Register
and give notice of such acceptance and recordation to the Borrower. On or prior to such effective
date, the Borrower, at its own expense, upon request, shall execute and deliver to the
Administrative Agent (in exchange for the applicable Notes of the assigning Lender) new applicable
Notes to the order of such Assignee in an amount equal to the applicable Loans assumed or acquired
by it pursuant to such Assignment and Acceptance and, if

 

60

the Assignor has retained Loans, upon
request, new Notes to the order of the Assignor in an amount equal to the applicable Loans retained
by it hereunder. Such new Note or Notes shall be dated the Closing Date and shall otherwise be in
the form of the Note or Notes replaced thereby.

          (f) For avoidance of doubt, the parties to this Agreement acknowledge that the provisions of
this Section concerning assignments of Loans and Notes relate only to absolute assignments and that
such provisions do not prohibit assignments creating security interests in Loans and Notes,
including, without limitation, any pledge or assignment by a Lender of any Loan or Note to any
Federal Reserve Bank in accordance with applicable law.

          (g) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting
Lender”) may grant to a special purpose funding vehicle (an “SPC”), identified as such
in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower,
the option to provide to the Borrower all or any part of any Loan that such Granting Lender would
otherwise be obligated to make to the Borrower pursuant to this Agreement; provided that
(i) nothing herein shall constitute a commitment by any SPC to make any Loan and (ii) if an SPC
elects not to exercise such option or otherwise fails to provide all or any part of such Loan, the
Granting Lender shall be obligated to make such Loan pursuant to the terms hereof. The making of a
Loan by an SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent,
and as if, such Loan were made by such Granting Lender. Each party hereto hereby agrees that no
SPC shall be liable for any indemnity or similar payment obligation under this Agreement (all
liability for which shall remain with the Granting Lender). In furtherance of the foregoing, each
party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that,
prior to the date that is one year and one day after the payment in full of all outstanding
commercial paper or other indebtedness of any SPC, it will not institute against, or join any other
person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings under the laws of the United States or any state thereof. In addition,
notwithstanding anything to the contrary in this Section 10.6(g), any SPC may (A) with notice to,
but without the prior written consent of, the Borrower and the Administrative Agent and without
paying any processing fee therefor, assign all or a portion of its interests in any Loans to the
Granting Lender, or with the prior written consent of the Borrower and the Administrative Agent
(which consent shall not be unreasonably withheld) to any financial institutions providing
liquidity and/or credit support to or for the account of such SPC to support the funding or
maintenance of Loans, and (B) disclose on a confidential basis any non-public information relating
to its Loans to any rating agency, commercial paper dealer or provider of any surety, guarantee or
credit or liquidity enhancement to such SPC; provided that non-public information with
respect to the Borrower may be disclosed only with the Borrower’s consent which will not be
unreasonably withheld. This paragraph (g) may not be amended without the written consent of any
SPC with Loans outstanding at the time of such proposed amendment.

          10.7 Adjustments; Set-off. (a) Except to the extent that this Agreement provides for
payments to be allocated to a particular Lender, if any Lender (a “Benefitted Lender”)
shall at any time receive any payment of all or part of the Obligations owing to it, or receive any
collateral in respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to events
or proceedings of the nature referred to in Section 7(f), or otherwise), in a greater proportion
than any such payment to or collateral received by any other Lender, if any, in respect of such
other Lender’s Obligations, such Benefitted Lender shall purchase for cash from the other Lenders a

 

61

participating interest in such portion of each such other Lender’s Obligations, or shall provide
such other Lenders with the benefits of any such collateral, as shall be necessary to cause such
Benefitted Lender to share the excess payment or benefits of such collateral ratably with each of
the Lenders; provided, however, that if all or any portion of such excess payment
or benefits is thereafter recovered from such Benefitted Lender, such purchase shall be rescinded,
and the purchase price and benefits returned, to the extent of such recovery, but without interest.

          (b) In addition to any rights and remedies of the Lenders provided by law, each Lender shall
have the right, without prior notice to the Borrower, any such notice being expressly waived by the
Borrower to the extent permitted by applicable law, upon any amount becoming due and payable by the
Borrower hereunder (whether at the stated maturity, by acceleration or otherwise), to set off and
appropriate and apply against such amount any and all deposits (general or special, time or demand,
provisional or final), in any currency, and any other credits, indebtedness or claims, in any
currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at
any time held or owing by such Lender or any branch or agency thereof to or for the credit or the
account of the Borrower. Each Lender agrees promptly to notify the Borrower and the Administrative
Agent after any such setoff and application made by such Lender, provided that the failure
to give such notice shall not affect the validity of such setoff and application.

          10.8 Counterparts. This Agreement may be executed by one or more of the parties to
this Agreement on any number of separate counterparts, and all of said counterparts taken together
shall be deemed to constitute one and the same instrument. Delivery of an executed signature page
of this Agreement by facsimile transmission shall be effective as delivery of a manually executed
counterpart hereof. A set of the copies of this Agreement signed by all the parties shall be
lodged with the Borrower and the Administrative Agent.

          10.9 Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

          10.10 Integration. This Agreement and the other Loan Documents represent the entire
agreement of the Borrower, the Agents, the Arrangers and the Lenders with respect to the subject
matter hereof and thereof, and there are no promises, undertakings, representations or warranties
by the Arrangers, any Agent or any Lender relative to subject matter hereof not expressly set forth
or referred to herein or in the other Loan Documents.

          10.11 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF NEW YORK.

          10.12 Submission To Jurisdiction; Waivers. The Borrower hereby irrevocably and unconditionally:

 

62

     (a) submits for itself and its Property in any legal action or proceeding relating to
this Agreement and the other Loan Documents to which it is a party, or for recognition and
enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of
the courts of the State of New York sitting in the Borough of Manhattan, the courts of the
United States of America for the Southern District of New York, and appellate courts from
any thereof;

     (b) consents that any such action or proceeding may be brought in such courts and
waives any objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an
inconvenient court and agrees not to plead or claim the same;

     (c) agrees that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially similar form of
mail), postage prepaid, to the Borrower at its address set forth in Section 10.2 or at such
other address of which the Administrative Agent shall have been notified pursuant thereto;

     (d) agrees that nothing herein shall affect the right to effect service of process in
any other manner permitted by law or shall limit the right to sue in any other jurisdiction;
and

     (e) waives, to the maximum extent not prohibited by law, any right it may have to claim
or recover in any legal action or proceeding referred to in this Section any special,
exemplary, punitive or consequential damages.

          10.13 Acknowledgments. The Borrower hereby acknowledges that:

     (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents;

     (b) neither the Arrangers, any Agent nor any Lender has any fiduciary relationship with
or duty to the Borrower arising out of or in connection with this Agreement or any of the
other Loan Documents, and the relationship between the Arrangers, the Agents and the
Lenders, on one hand, and the Borrower, on the other hand, in connection herewith or
therewith is solely that of debtor and creditor; and

     (c) no joint venture is created hereby or by the other Loan Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Arrangers, the Agents and
the Lenders or among the Borrower and the Lenders.

          10.14 Confidentiality. Each of the Agents and the Lenders agrees to keep confidential
all non-public information provided to it by any Loan Party pursuant to this Agreement that is
designated by such
Loan Party as confidential; provided that nothing herein shall prevent any Agent or
any Lender, subject to the confidentiality provisions of this Section, from disclosing any such
information (a) to the Arrangers, any Agent, any other Lender or any affiliate of any thereof, (b)
to any Participant or Assignee (each, a “Transferee”) or prospective Transferee that agrees
to comply with the provisions of this Section or substantially equivalent provisions, (c) to any of
its employees, directors, agents, attorneys, accountants and other

 

63

professional advisors who agree
to comply with the provisions of this Section or substantially equivalent provisions, (d) to any
financial institution that is a direct or indirect contractual counterparty in swap agreements or
such contractual counterparty’s professional advisor (so long as such contractual counterparty or
professional advisor to such contractual counterparty agrees to be bound by the provisions of this
Section), (e) upon the request or demand of any Governmental Authority having jurisdiction over it,
(f) in response to any order of any court or other Governmental Authority or as may otherwise be
required pursuant to any Requirement of Law, (g) in connection with any litigation or similar
proceeding, (h) that has been publicly disclosed other than in breach of this Section, (i) to the
National Association of Insurance Commissioners or any similar organization or any nationally
recognized rating agency that requires access to information about a Lender’s investment portfolio
in connection with ratings issued with respect to such Lender or (j) in connection with the
exercise of any remedy hereunder or under any other Loan Document.

          10.15 Release of Guarantee Obligations. 

     (a) Notwithstanding anything to the contrary contained herein or in any other Loan
Document, upon request of the Borrower in connection with any Disposition of Property
permitted by the Loan Documents, the Administrative Agent shall take such actions as shall
be required to release any guarantee obligations under any Loan Document of any Person being
Disposed of in such Disposition, to the extent necessary to permit consummation of such
Disposition in accordance with the Loan Documents.

     (b) Notwithstanding anything to the contrary contained herein or any other Loan
Document, when all Obligations have been paid in full, all Commitments have terminated or
expired, upon request of the Borrower, the Administrative Agent shall take such actions as
shall be required to release all guarantee obligations under any Loan Document. Any such
release of guarantee obligations shall be deemed subject to the provision that such
guarantee obligations shall be reinstated if after such release any portion of any payment
in respect of the Obligations guaranteed thereby shall be rescinded or must otherwise be
restored or returned upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Borrower or any Guarantor, or upon or as a result of the appointment
of a receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower
or any Guarantor or any substantial part of its property, or otherwise, all as though such
payment had not been made.

          10.16 Accounting Changes. In the event that any “Accounting Change” (as defined
below) shall occur and such change results in a change in the method of calculation of financial
covenants, standards or terms in this Agreement, then the Borrower and the Administrative Agent
agree to enter into negotiations in order to amend such provisions of this Agreement so as to
equitably reflect such
Accounting Change with the desired result that the criteria for evaluating the Borrower’s
financial condition shall be the same after such Accounting Change as if such Accounting Change had
not been made. Until such time as such an amendment shall have been executed and delivered by the
Borrower, the Administrative Agent and the Required Lenders, all financial covenants, standards and
terms in this Agreement shall continue to be calculated or construed as if such Accounting Change
had not occurred. “Accounting Change” refers to any change in accounting principles
required by the promulgation of any rule, regulation,

 

64

pronouncement or opinion by the Financial
Accounting Standards Board of the American Institute of Certified Public Accountants or, if
applicable, the SEC.

          10.17 WAIVERS OF JURY TRIAL. THE BORROWER, THE AGENTS AND THE LENDERS HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

65

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their proper and duly authorized officers as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	TESORO CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Otto C. Schwethelm 	 	 
	 

	 	 	 	 

Name: Otto C. Schwethelm
	 	 
	 

	 	 	 	Title: Vice President, Finance and
Treasurer	 	 

 

 

	 	 	 	 	 	 	 
	 	 	SUBSIDIARY GUARANTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	KENAI PIPE LINE COMPANY	 	 
	 	 	SMILEY’S SUPER
SERVICE, INC. 	 	 
	 	 	 TESORO ALASKA COMPANY	 	 
	 	 	 TESORO ALASKA PIPELINE
       COMPANY	 	 
	 	 	TESORO AVIATION COMPANY 	 	 
	 	 	TESORO COMPANIES, INC.	 	 
	 	 	 TESORO ENVIRONMENTAL
RESOURCES
       COMPANY	 	 
	 	 	TESORO HIGH PLAINS
PIPELINE
       COMPANY	 	 
	 	 	TESORO MARITIME COMPANY	 	 
	 	 	TESORO NORTHSTORE
COMPANY	 	 
	 	 	TESORO REFINING AND
MARKETING 
       COMPANY	 	 
	 	 	TESORO SIERRA
PROPERTIES, LLC	 	 
	 	 	TESORO SOUTH COAST
COMPANY,
       LLC	 	 
	 	 	TESORO TRADING COMPANY	 	 
	 	 	TESORO VOSTOK COMPANY	 	 
	 	 	TESORO WASATCH, LLC	 	 
	 	 	TESORO WEST COAST
COMPANY, 
       LLC	 	 
	 	 		 	 
	 

	 	By:	 	/s/ Otto C. Schwethelm 	 	 
	 

	 	 	 	 

Name: Otto C. Schwethelm
	 	 
	 

	 	 	 	Title: Vice President, Finance and
Treasurer	 	 
	 	 		 	 
	 	 	TESORO FINANCIAL
SERVICES 
       HOLDING COMPANY
	 	 
	 	 		 	 
	 

	 	By:	 	/s/ Charles L. Magee 	 	 
	 

	 	 	 	 

Name: Charles L. Magee
	 	 
	 

	 	 	 	Title: President	 	 
	 	 		 	 
	 	 	GOLD STAR MARITIME
COMPANY 
TESORO FAR EAST MARITIME
        COMPANY
	 	 
	 	 		 	 
	 

	 	By:	 	/s/ Gregory A. Wright 	 	 
	 

	 	 	 	 

Name: Gregory A. Wright
	 	 
	 

	 	 	 	Title: Executive Vice President and

          Chief Financial Officer	 	 
	 	 		 	 
	 	 	TESORO HAWAII
CORPORATION
	 	 
	 	 		 	 
	 

	 	By:	 	/s/ Gregory A. Wright 	 	 
	 

	 	 	 	 

Name: Gregory A. Wright
	 	 
	 

	 	 	 	Title: Executive Vice President, Chief

          Financial
Officer and Treasurer	 	 
	 	 		 	 

 

 

	 	 	 	 	 	 	 
	 	 	LEHMAN BROTHERS INC.,

as Arranger	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Claire O’Connor 	 	 
	 

	 	 	 	 

Name: Claire O’Connor
	 	 
	 

	 	 	 	Title: Managing Director	 	 

 

 

	 	 	 	 	 	 	 
	 	 	J.P. MORGAN SECURITIES INC.,

as Arranger	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Helen A. Carr 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Name: Helen A. Carr	 	 
	 

	 	 	 	Title: Managing Director	 	 

 

 

	 	 	 	 	 	 	 
	 	 	LEHMAN COMMERCIAL PAPER INC.,

as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Claire O’Connor 	 	 
	 

	 	 	 	 

Name: Claire O’Connor
	 	 
	 

	 	 	 	Title: Managing Director	 	 

 

 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK,

NATIONAL ASSOCIATION,

as Syndication Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Helen A. Carr 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Name: Helen A. Carr	 	 
	 

	 	 	 	Title: Managing Director	 	 

 

 

	 	 	 	 	 	 	 
	 	 	LEHMAN COMMERCIAL PAPER INC.,

as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Claire O’Connor 	 	 
	 

	 	 	 	 

Name: Claire O’Connor
	 	 
	 

	 	 	 	Title: Managing Director	 	 

 

 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK,

NATIONAL ASSOCIATION,

as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Helen A. Carr 	 	 
	 

	 	 	 	 

Name: Helen A. Carr

Title:   Managing Director

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