Document:

exv10w5

Exhibit 10.5

Execution Version

CREDIT AGREEMENT

dated as of May 28, 2010

between

ALON REFINING

KROTZ SPRINGS, INC.

and

GOLDMAN SACHS BANK USA

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 1.
	 	DEFINITIONS AND INTERPRETATION	 	 	1	 
	 
	 	 	 	 	 	 
	1.1.
	 	Definitions	 	 	1	 
	1.2.
	 	Accounting Terms	 	 	18	 
	1.3.
	 	Interpretation, Etc.	 	 	18	 
	 
	 	 	 	 	 	 
	SECTION 2.
	 	THE LETTER OF CREDIT	 	 	18	 
	 
	 	 	 	 	 	 
	2.1.
	 	Issuance of the Letter of Credit	 	 	18	 
	2.2.
	 	Interest on LC Disbursements	 	 	20	 
	2.3.
	 	Fees	 	 	20	 
	2.4.
	 	Cash Collateralization	 	 	21	 
	2.5.
	 	General Provisions Regarding Payments	 	 	21	 
	2.6.
	 	Increased Costs; Capital Adequacy	 	 	22	 
	2.7.
	 	Taxes; Withholding, Etc.	 	 	23	 
	2.8.
	 	Obligation to Mitigate	 	 	24	 
	 
	 	 	 	 	 	 
	SECTION 3.
	 	CONDITIONS PRECEDENT	 	 	24	 
	 
	 	 	 	 	 	 
	3.1.
	 	Closing Date	 	 	24	 
	3.2.
	 	Additional Conditions to Issuance of Letter of Credit	 	 	26	 
	 
	 	 	 	 	 	 
	SECTION 4.
	 	REPRESENTATIONS AND WARRANTIES	 	 	27	 
	 
	 	 	 	 	 	 
	4.1.
	 	Organization; Powers	 	 	27	 
	4.2.
	 	Authorization	 	 	27	 
	4.3.
	 	Enforceability	 	 	27	 
	4.4.
	 	Governmental Approvals	 	 	28	 
	4.5.
	 	Financial Statements	 	 	28	 
	4.6.
	 	Material Adverse Change	 	 	28	 
	4.7.
	 	Title to Properties; Possession Under Leases	 	 	28	 
	4.8.
	 	Subsidiaries	 	 	28	 
	4.9.
	 	Litigation; Compliance with Laws	 	 	28	 
	4.10.
	 	Agreements	 	 	29	 
	4.11.
	 	Federal Reserve Regulations	 	 	29	 
	4.12.
	 	Investment Company Act	 	 	29	 
	4.13.
	 	[Reserved.]	 	 	29	 
	4.14.
	 	Tax Returns	 	 	29	 
	4.15.
	 	No Material Misstatements	 	 	29	 
	4.16.
	 	ERISA	 	 	29	 
	4.17.
	 	Environmental Matters	 	 	30	 
	4.18.
	 	Insurance	 	 	30	 
	4.19.
	 	Collateral Documents	 	 	30	 
	4.20.
	 	Labor Matters	 	 	30	 
	4.21.
	 	Solvency	 	 	31	 
	4.22.
	 	Senior Indebtedness	 	 	31	 
	4.23.
	 	Sanctioned Persons	 	 	31	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	4.24.
	 	Intellectual Property	 	 	31	 
	4.25.
	 	First Purchaser Liens	 	 	31	 
	4.26.
	 	PATRIOT Act	 	 	31	 
	 
	 	 	 	 	 	 
	SECTION 5.
	 	AFFIRMATIVE COVENANTS	 	 	32	 
	 
	 	 	 	 	 	 
	5.1.
	 	Existence; Businesses and Properties	 	 	32	 
	5.2.
	 	Insurance	 	 	32	 
	5.3.
	 	Obligations and Taxes	 	 	33	 
	5.4.
	 	Financial Statements, Reports, etc.	 	 	33	 
	5.5.
	 	Litigation and Other Notices	 	 	34	 
	5.6.
	 	Maintaining Records; Access to Properties and Inspections	 	 	34	 
	5.7.
	 	ERISA	 	 	35	 
	5.8.
	 	Senior Indebtedness Designation	 	 	35	 
	5.9.
	 	Collateral	 	 	35	 
	5.10.
	 	[Reserved.]	 	 	36	 
	5.11.
	 	[Reserved.]	 	 	36	 
	5.12.
	 	Additional Subsidiaries	 	 	36	 
	5.13.
	 	Compliance with Law; Maintenance of Licenses	 	 	36	 
	 
	 	 	 	 	 	 
	SECTION 6.
	 	NEGATIVE COVENANTS	 	 	36	 
	 
	 	 	 	 	 	 
	6.1.
	 	Limitation on Indebtedness	 	 	37	 
	6.2.
	 	Liens	 	 	37	 
	6.3.
	 	ERISA	 	 	37	 
	6.4.
	 	[Reserved.]	 	 	37	 
	6.5.
	 	Mergers, Consolidations and Other Fundamental Changes	 	 	37	 
	6.6.
	 	Asset Sales	 	 	37	 
	6.7.
	 	Restricted Payments	 	 	38	 
	6.8.
	 	Transactions with Affiliates	 	 	38	 
	6.9.
	 	Permitted Business	 	 	40	 
	6.10.
	 	Restrictive Agreements	 	 	40	 
	6.11.
	 	Amendment of Material Documents	 	 	40	 
	6.12.
	 	Hedging Agreements	 	 	40	 
	6.13.
	 	Parent Credit Agreement	 	 	40	 
	 
	 	 	 	 	 	 
	SECTION 7.
	 	[RESERVED]	 	 	41	 
	 
	 	 	 	 	 	 
	SECTION 8.
	 	EVENTS OF DEFAULT	 	 	41	 
	 
	 	 	 	 	 	 
	SECTION 9.
	 	MISCELLANEOUS	 	 	43	 
	 
	 	 	 	 	 	 
	9.1.
	 	Notices	 	 	43	 
	9.2.
	 	Expenses	 	 	45	 
	9.3.
	 	Indemnity	 	 	45	 
	9.4.
	 	Set-Off	 	 	46	 
	9.5.
	 	Amendments and Waivers	 	 	47	 
	9.6.
	 	Successors and Assigns; Participations	 	 	47	 
	9.7.
	 	Independence of Covenants	 	 	48	 
	9.8.
	 	Survival of Representations, Warranties and Agreements	 	 	48	 
	9.9.
	 	No Waiver; Remedies Cumulative	 	 	48	 

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	 	 	 	 	Page	 
	9.10.
	 	Marshalling; Payments Set Aside	 	 	49	 
	9.11.
	 	Severability	 	 	49	 
	9.12.
	 	Headings	 	 	49	 
	9.13.
	 	APPLICABLE LAW	 	 	49	 
	9.14.
	 	CONSENT TO JURISDICTION	 	 	49	 
	9.15.
	 	WAIVER OF JURY TRIAL	 	 	50	 
	9.16.
	 	Confidentiality	 	 	50	 
	9.17.
	 	Usury Savings Clause	 	 	51	 
	9.18.
	 	Counterparts	 	 	51	 
	9.19.
	 	Effectiveness; Entire Agreement	 	 	51	 
	9.20.
	 	PATRIOT Act	 	 	52	 
	9.21.
	 	Electronic Execution of Assignments	 	 	52	 
	9.22.
	 	No Fiduciary Duty	 	 	52	 
	9.23.
	 	Collateral Agent	 	 	52	 
	 
	 	 	 	 	 	 
	EXHIBITS
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Exhibit A
	 	Letter of Credit	 	 	 	 
	Exhibit B
	 	Pledge and Security Agreement	 	 	 	 
	Exhibit C
	 	Issuance Notice	 	 	 	 
	Exhibit D
	 	Closing Date and Solvency Certificate	 	 	 	 
	Exhibit E
	 	Collateral Certificate	 	 	 	 
	Exhibit F
	 	Borrower’s Counsel Opinion	 	 	 	 
	 
	 	 	 	 	 	 
	SCHEDULES
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Schedule 4.9
	 	Pending Litigation	 	 	 	 
	Schedule 4.17
	 	Environmental Matters	 	 	 	 
	Schedule 4.18
	 	Insurance	 	 	 	 

iv

 

CREDIT AGREEMENT

          This CREDIT AGREEMENT, dated as of May 28, 2010, is entered into by and between ALON REFINING
KROTZ SPRINGS, INC., a Delaware corporation (“Borrower”), and GOLDMAN SACHS BANK USA, as Issuing
Bank (“Issuing Bank”).

RECITALS:

     WHEREAS, capitalized terms used in these Recitals shall have the respective meanings set forth
for such terms in Section 1.1 hereof;

     WHEREAS, Issuing Bank has agreed to issue a standby letter of credit for the account of
Borrower in the stated amount not to exceed $200,000,000;

     WHEREAS, Borrower has agreed to secure all of its Obligations by granting to Issuing Bank
certain Collateral;

     WHEREAS, the issuance by Issuing Bank of the Letter of Credit and the other financial
accommodations and agreements contemplated hereby constitute a “Refinancing” of the “Revolving
Obligations” under the Intercreditor Agreement and as such are entitled to the benefits thereof;

     NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, the parties hereto agree as follows:

SECTION 1. DEFINITIONS AND INTERPRETATION

     1.1. Definitions. The following terms used herein, including in the preamble, recitals,
exhibits and schedules hereto, shall have the following meanings:

          “ABL Priority Collateral” shall be as defined in the Intercreditor Agreement.

          “Account” has the meaning assigned to such term in Article 9 of the UCC.

          “Adjusted Eurodollar Rate” means on any date of determination, the rate per annum equal to the
rate determined by Issuing Bank to be the offered rate which appears on the page of the Reuters
Screen which displays an average British Bankers Association Interest Settlement Rate (such page
currently being LIBOR01 page) for deposits for an interest period of one month, determined as of
approximately 11:00 a.m. (London, England time) on such date of determination.

          “Affiliate” means, when used with respect to a specified person, another person that directly
or indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the person specified; provided, however, that for purposes of Section
6.8, the term “Affiliate” shall include any person that directly or indirectly owns more than 10%
or more of the Equity Interests entitled to vote in the election of the board of directors or
similar body of the person specified.

 

 

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

          “Approved Electronic Communications” means any notice, demand, communication, information,
document or other material that Borrower provides to Issuing Bank pursuant to any Credit Document
or the transactions contemplated therein which is distributed to Issuing Bank by means of
electronic communications pursuant to Section 9.1(b).

          “Assignee” shall be as defined in Section 9.6(b).

          “Average Life” means, as of the date of determination, with respect to any Indebtedness, the
quotient obtained by dividing:

	 	(1)	 	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 or redemption or similar payment with respect to
such Indebtedness multiplied by the amount of such payment by
	 
	 	(2)	 	the sum of all such payments.

          “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as now and
hereafter in effect, or any successor statute.

          “Base Rate” means, for any day, a rate per annum equal to the greater of (i) the Prime Rate in
effect on such day and (ii) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%.
Any change in the Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate
shall be effective on the effective day of such change in the Prime Rate or the Federal Funds
Effective Rate, respectively; provided, however, that notwithstanding the foregoing, the
Base Rate shall at no time be less than the Adjusted Eurodollar Rate that would be available on
such day.

          “Board of Governors” means the Board of Governors of the United States Federal Reserve System,
or any successor thereto.

          “Borrower” as defined in the preamble hereto.

          “Business Day” (i) means any day excluding Saturday, Sunday and any day which is a legal
holiday under the laws of the State of New York or is a day on which banking institutions located
in such state are authorized or required by law or other governmental action to close and (ii) with
respect to all determinations of an interest rate in connection with the Adjusted Eurodollar Rate,
the term “Business Day” means any day which is a Business Day described in clause (i) and which is
also a day for trading by and between banks in Dollar deposits in the London interbank market.

          “Capital Lease Obligations” of any person means the obligations of such person to pay rent or
other amounts under any lease of (or other arrangement conveying the right to use) real or personal
property, or a combination thereof, which obligations are required to be classified and accounted
for as capital leases on a balance sheet of such person under GAAP, and

2

 

the amount of such obligations shall be the capitalized amount thereof determined in
accordance with GAAP.

          “CFC” means (a) each subsidiary of Borrower that is a “controlled foreign corporation” for
purposes of the Code and (b) each subsidiary of each such controlled foreign corporation.

          A “Change of Control” shall be deemed to have occurred:

	 	(1)	 	if any “person” (as such term is used in Sections 13(d) and
14(d) of the Exchange Act), other than one or more Permitted Holders, is or
becomes the beneficial owner, as defined in Rules 13d-3 and 13d-5 under the
Exchange Act (except that for purposes of this clause (1) such person shall be
deemed to have “beneficial ownership” of all shares that any such person has
the right to acquire, whether such right is exercisable immediately or only
after the passage of time), directly or indirectly, of more than 50% of the
total voting power of the Voting Stock of Borrower (for the purposes of this
clause (1), such other person shall be deemed to beneficially own any Voting
Stock of a specified person held by a parent entity, if such other person is
the beneficial owner (as defined in this clause (1)), directly or indirectly,
of more than 50% of the voting power of the Voting Stock of such parent entity
or has the right or ability by voting power, contract or otherwise to elect or
designate for election a majority of the board of directors of such parent
entity);
	 
	 	(2)	 	if individuals who on the Closing Date constituted the Board of
Directors of Borrower (together with any new directors whose election by the
Board of Directors of Borrower or whose nomination for election by the
shareholders of Borrower was approved by a vote of a majority of the directors
of Borrower then still in office who were either directors on the Closing Date
or whose election or nomination for election was previously so approved) cease
for any reason to constitute a majority of the Board of Directors of Borrower
then in office;
	 
	 	(3)	 	upon the adoption of a plan relating to the liquidation or
dissolution of Borrower; or
	 
	 	(4)	 	upon the merger or consolidation of Borrower with or into
another person or the merger of another person with or into Borrower, or the
sale of all or substantially all the assets of Borrower (determined on a
consolidated basis) to another person (other than, in all such cases, a person
that is controlled by the Permitted Holders), other than a transaction
following which (A) in the case of a merger or consolidation transaction, (i)
holders of securities that represented 100% of the Voting Stock of Borrower
immediately prior to such transaction own directly or indirectly at least a
majority of the voting power of the Voting Stock of the surviving person in
such merger or consolidation transaction immediately after such

3

 

	 	 	 	transaction and in substantially the same proportion to each other as before
the transaction or (ii) immediately after such transaction the Permitted
Holders beneficially own, directly or indirectly, at least a majority of the
voting power of the Voting Stock of the surviving person in such merger or
consolidation transaction immediately after such transaction and (B) in the
case of a sale of assets transaction, each transferee becomes an obligor in
respect of the Obligations and either (i) is or becomes a subsidiary of the
transferor of such assets or (ii) is or becomes a person a majority of the
total voting power of the Voting Stock of which is beneficially owned,
directly or indirectly, by the Permitted Holders.

          “Closing Date” means the date on which all conditions set forth in Section 3.1 have been
satisfied (or waived by the Issuing Bank).

          “Closing Date Certificate” means a Closing Date Certificate substantially in the form of
Exhibit D.

          “Code” means the Internal Revenue Code of 1986, as amended from time to time, and any
successor statutes thereto, and U.S. Department of Treasury regulations issued pursuant thereto in
temporary or final form.

          “Collateral” means the ABL Priority Collateral and all proceeds thereof.

          “Collateral Agent” means Goldman Sachs Bank USA acting as Collateral Agent for the Issuing
Bank as contemplated in Section 9.23 below.

          “Collateral Certificate” means, as of any date, a certificate in substantially the form of
Exhibit E or another form which is reasonably acceptable to Issuing Bank and Borrower setting forth
in reasonable detail (a) all Eligible Accounts at such time, and (b) all Eligible Inventory at such
time (valued at the price to be paid for such Eligible Inventory pursuant to the Supply and Offtake
Agreement or such other offtake arrangements entered into by Borrower from time to time, as
applicable).

          “Collateral Documents” means the Pledge and Security Agreement, and all other instruments,
documents and agreements delivered by or on behalf of Borrower pursuant to this Agreement or any of
the other Credit Documents in order to grant to, or perfect in favor of, the Issuing Bank or
Collateral Agent, a Lien on any real, personal or mixed property of Borrower as security for the
Obligations.

          “Commitment” means the commitment of Issuing Bank to issue the Letter of Credit.

          “Commodity Agreement” means in respect of any Person, any commodity or raw material futures
contract, commodity or raw materials option or other agreement or arrangement designed to protect
such Person against fluctuations in commodity or raw materials prices, other than hydrocarbons.

4

 

          “Control” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a person, whether through the ownership of voting
securities, by contract or otherwise, and the terms “Controlling” and “Controlled” shall have
meanings correlative thereto.

          “Crack Spread Hedging Agreement” means any Hedge Agreement or combination of Hedge Agreements
to which Borrower or any of its subsidiaries is a party that hedges against fluctuations in the
difference between the price of crude oil and the price of refined petroleum products, together
with the schedules and exhibits thereto.

          “Crack Spread Hedging Cash Collateral” shall be as defined in the Intercreditor Agreement.

          “Crack Spread Hedging Cash Collateral Account” shall be as defined in the Intercreditor
Agreement.

          “Crack Spread Hedging Counterparty” means any person that is party to a Crack Spread Hedging
Agreement as the counterparty to Borrower thereunder and a party to the Intercreditor Agreement
pursuant to an intercreditor joinder agreement.

          “Crack Spread Hedging Liens” shall be as defined in the Intercreditor Agreement.

          “Crack Spread Hedging Obligations” shall be as defined in the Intercreditor Agreement.

          “Crack Spread Hedging Secured Party” shall be as defined in the Intercreditor Agreement.

          “Crack Spread Hedging Support LC” shall be as defined in the Intercreditor Agreement.

          “Credit Document” means any of this Agreement, the Collateral Documents, any documents or
certificates executed by Borrower in favor of Issuing Bank relating to the Letter of Credit, and
all other documents, certificates, instruments or agreements executed and delivered by or on behalf
of Borrower for the benefit of Issuing Bank in connection herewith on or after the date hereof.

          “Currency Agreement” means any foreign exchange contract, currency swap agreement, futures
contract, option contract, synthetic cap or other similar agreement or arrangement, each of which
is for the purpose of hedging the foreign currency risk associated with the operations of any
Person.

          “Default” means a condition or event that, after notice or lapse of time or both, would
constitute an Event of Default.

5

 

          “Deposit Account” means a demand, time, savings, passbook or like account with a bank, savings
and loan association, credit union or like organization, other than an account evidenced by a
negotiable certificate of deposit.

          “Deposit Account Control Agreements” means the deposit account control agreements, in form and
substance acceptable to Issuing Bank, to be executed by each institution maintaining a Deposit
Account for Borrower to the extent required by Section 4.04(a) of the Pledge and Security
Agreement, as security for the Obligations incurred under the Credit Documents, and in favor of
such other parties as is contemplated by the Intercreditor Agreement.

          “Disqualified Stock” means any capital stock that, by its terms (or by the terms of any
security into which it is convertible, or for which it is exchangeable, in each case, at the option
of the holder of the capital stock), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the
holder of the capital stock, in whole or in part, in any such case on or prior to the date that is
91 days after the date of expiration of the Letter of Credit. Notwithstanding the preceding
sentence, any capital stock that would constitute Disqualified Stock solely because the holders of
the capital stock have the right to require Borrower to repurchase such capital stock upon the
occurrence of a change of control or an asset sale will not constitute Disqualified Stock if the
terms of such capital stock provide that Borrower may not repurchase or redeem any such capital
stock pursuant to such provisions unless such repurchase or redemption complies with Section 6.8.
The amount of Disqualified Stock deemed to be outstanding at any time for purposes of this
Agreement will be the maximum amount that Borrower and its subsidiaries may become obligated to pay
upon the maturity of, or pursuant to any mandatory redemption provisions of, such Disqualified
Stock, exclusive of accrued dividends.

          “Dollars” and the sign “$” mean the lawful money of the United States of America.

          “Domestic Subsidiary” means any Subsidiary organized under the laws of the United States of
America, any State thereof or the District of Columbia.

          “Eligible Accounts” means, at any time, all Accounts of Borrower other than Accounts that are
not subject to a first priority perfected Lien in favor of Issuing Bank.

          “Eligible Inventory” means, at any time, all Inventory of Borrower other than Inventory that
is not subject to a first priority perfected Lien in favor of Issuing Bank.

          “Employee Benefit Plan” means an “employee benefit plan” as defined in Section 3(3) of ERISA.

          “Environment” means soil, land surface, subsurface, surface waters (whether permanent or
ephemeral), groundwater, drinking water, wetlands, sediments, ambient air (including, without
limitation, indoor air), plant life, animal life, microorganisms and any and all other natural
media or resources.

          “Environmental Laws” means all former, current and future federal, state, local and foreign
laws (including common law), treaties, regulations, rules, ordinances, codes, decrees,

6

 

judgments, directives, orders (including consent orders), and agreements, in each case,
relating to protection of the Environment, natural resources, human health and safety or the
presence, Release of, or exposure to, Hazardous Materials, or the generation, manufacture,
processing, distribution, use, treatment, storage, transport, recycling or handling of, or the
arrangement for such activities with respect to, Hazardous Materials.

          “Environmental Liability” means all liabilities, obligations, prohibitions, damages, losses,
claims, actions, suits, judgments, orders, fines, penalties, fees, expenses and costs (including,
without limitation, administrative oversight costs, natural resource damages, financial assistance
and remediation costs necessary to meet state, federal or local cleanup levels, regardless of
whether there may be a current obligation to remediate), whether contingent or otherwise, arising
out of or relating to actual or alleged (a) compliance or non-compliance with any Environmental
Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any
Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the Release of any Hazardous
Materials or (e) any contract, agreement or other consensual arrangement pursuant to which
liability is assumed or imposed with respect to any of the foregoing.

          “Equipment” shall be as defined in the UCC.

          “Equity Interests” means shares of capital stock, partnership interests, membership interests
in a limited liability company, beneficial interests in a trust or other equity interests in any
person, or any obligations convertible into or exchangeable for, or giving any person a right,
option or warrant to acquire, such equity interests or such convertible or exchangeable
obligations.

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

          “ERISA Affiliate” at any time, means each trade or business (whether or not incorporated) that
would, at the time, be treated together with Borrower as a single employer under Title IV or
Section 302 of ERISA or Section 412 of the Code.

          “ERISA Event” means (i) a “reportable event” within the meaning of Section 4043 of ERISA and
the regulations issued thereunder with respect to any Pension Plan (excluding those for which the
provision for 30 day notice to the PBGC is waived by regulation); (ii) the failure to meet the
minimum funding standard of Section 412 of the Internal Revenue Code with respect to any Pension
Plan (whether or not waived in accordance with Section 412(c) of the Internal Revenue Code); (iii)
the determination that any Pension Plan or Multiemployer Plan is considered an at-risk plan or a
plan in endangered or critical status within the meaning of Sections 430, 431 and 432 of the Code
or Sections 303, 304 and 305 of ERISA; (iv) the provision by the administrator of any Pension Plan
pursuant to Section 4041(a)(2) of ERISA of a notice of intent to terminate such plan in a distress
termination described in Section 4041(c) of ERISA; (v) the withdrawal by Holdings, any of its
subsidiaries or any of their respective ERISA Affiliates from any Pension Plan with two or more
contributing sponsors or the termination of any such Pension Plan resulting in liability to
Holdings, any of its subsidiaries or any of their respective ERISA Affiliates pursuant to Section
4063 or 4064 of ERISA; (vi) the institution by the PBGC of proceedings to terminate any Pension
Plan, or the occurrence of any event or

7

 

condition which is reasonably expected to constitute grounds under ERISA for the termination
of, or the appointment of a trustee to administer, any Pension Plan; (vii) the imposition of
liability on Holdings, any of its subsidiaries or any of their respective ERISA Affiliates pursuant
to Section 4062(e) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA;
(viii) the withdrawal of Holdings, any of its subsidiaries or any of their respective ERISA
Affiliates in a complete or partial withdrawal (within the meaning of Sections 4203 and 4205 of
ERISA) from any Multiemployer Plan if there is any potential liability therefore, or the receipt by
Holdings, any of its subsidiaries or any of their respective ERISA Affiliates of notice from any
Multiemployer Plan that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of
ERISA, or that it intends to terminate or has terminated under Section 4041A or 4042 of ERISA; (ix)
the occurrence of an act or omission which is reasonably expected to give rise to the imposition on
Holdings or any of its subsidiaries of fines, penalties, taxes or related charges under Chapter 43
of the Internal Revenue Code or under Section 409, Section 502(c), (i) or (l), or Section 4071 of
ERISA in respect of any Employee Benefit Plan; (x) receipt from the Internal Revenue Service of
notice of the failure of any Pension Plan to qualify under Section 401(a) of the Internal Revenue
Code, or the failure of any trust forming part of any Pension Plan to qualify for exemption from
taxation under Section 501(a) of the Internal Revenue Code; or (xi) the imposition of a lien
pursuant to Section 430(k) of the Internal Revenue Code or ERISA.

          “Event of Default” means each of the conditions or events set forth in Section 8.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and
any successor statute.

          “Existing Parent Revolving Credit Agreement” means that certain Amended Revolving Credit
Agreement, dated as of June 22, 2006 by and among Alon USA, LP, f/k/a SWBU, L.P., a Texas limited
partnership, as a borrower, such other subsidiaries of Parent as may be designated as a borrower
thereunder, Parent and all direct and indirect subsidiaries of Parent (other than the “Excluded
Subsidiaries” as defined therein), each as a guarantor, the financial institutions from time to
time party thereto as lenders, Israel Discount Bank of New York, as administrative agent,
co-arranger and collateral agent for the lenders, and Bank Leumi USA, as co-arranger for the
lenders, as amended and as the same may from time to time be amended, restated or otherwise
modified.

          “Existing Parent Term Credit Agreement” means the Credit Agreement dated as of June 22, 2006,
as amended, among Parent, the lenders party thereto and Credit Suisse, as issuing bank.

          “ExxonMobil Pipeline Supply Contract” means any agreement pursuant to which Holdings or any of
its subsidiaries obtains crude oil through any ExxonMobil Pipeline, and any agreement relating
thereto, other than any tariff rules and regulations and similar agreements of general application
from time to time published by ExxonMobil Pipeline Company.

          “ExxonMobil Pipelines” means the pipeline systems known as (a) the “Southbend/Sunset System”
and (b) the “Northline System”, each operated by ExxonMobil Pipeline Company.

8

 

          “Federal Funds Effective Rate” means for any day, the rate per annum (expressed, as a decimal,
rounded upwards, if necessary, to the next higher 1/100 of 1%) equal to the weighted average of the
rates on overnight Federal funds transactions with members of the Federal Reserve System arranged
by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the
Business Day next succeeding such day; provided, (i) if such day is not a Business Day, the
Federal Funds Effective Rate for such day shall be such rate on such transactions on the next
preceding Business Day as so published on the next succeeding Business Day, and (ii) if no such
rate is so published on such next succeeding Business Day, the Federal Funds Effective Rate for
such day shall be the average rate charged to Issuing Bank on such day on such transactions as
determined by Issuing Bank.

          “Financial Officer” of any Person means the Chief Financial Officer, principal accounting
officer, treasurer or controller of such Person.

          “Financial Officer Certification” means, with respect to the financial statements for which
such certification is required, the certification of the chief financial officer of Borrower that
such financial statements fairly present, in all material respects, the financial condition of
Borrower as at the dates indicated and the results of its operations and its cash flows for the
periods indicated, subject to changes resulting from audit and normal year-end adjustments.

          “First Priority” means, with respect to any Lien purported to be created in any Collateral
pursuant to any Collateral Document, that such Lien is the only Lien to which such Collateral is
subject, other than any Permitted Lien.

          “First Purchaser Lien” means a statutory Lien created in connection with the sale and purchase
of Petroleum Products, including the statutory Liens, if any, created under the laws of Texas, New
Mexico, Wyoming, Kansas, Oklahoma, or any other state.

          “Fiscal Quarter” means a fiscal quarter of any Fiscal Year.

          “Fiscal Year” means the fiscal year of Borrower ending on December 31 of each calendar year.

          “GAAP” means, subject to the limitations on the application thereof set forth in Section 1.2,
United States generally accepted accounting principles in effect as of the date of determination
thereof.

          “Governmental Acts” means any act or omission, whether rightful or wrongful, of any present or
future de jure or de facto government or Governmental Authority.

          “Governmental Authority” means any federal, state, municipal, national or other government,
governmental department, commission, board, bureau, court, agency or instrumentality or political
subdivision thereof or any entity, officer or examiner exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to any government or any court, in each
case whether associated with a state of the United States, the United States, or a foreign entity
or government.

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          “Governmental Authorization” means any permit, license, authorization, plan, directive,
consent order or consent decree of or from any Governmental Authority.

          “Guarantee” of or by any person means any obligation, contingent or otherwise, of such person
guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of
any other person (the “primary obligor”) in any manner, whether directly or indirectly, and
including any obligation of such person, direct or indirect, (a) to purchase or pay (or advance or
supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase
(or to advance or supply funds for the purchase of) any security for the payment of such
Indebtedness or other obligation, (b) to purchase or lease property, securities or services for the
purpose of assuring the owner of such Indebtedness or other obligation of the payment of such
Indebtedness or other obligation or (c) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation; provided, however, that the term “Guarantee”
shall not include endorsements for collection or deposit in the ordinary course of business.

          “Hapoalim Indebtedness” means all Indebtedness of Borrower under the Credit Agreement dated as
of March 15, 2010 by and among Borrower, the lenders party thereto and Bank Hapoalim B.M., as
administrative agent.

          “Hazardous Materials” means any chemical, material or substance, exposure to which is
prohibited, limited or regulated by any Governmental Authority or which may or could pose a hazard
to the health and safety of the owners, occupants or any Person in the vicinity of any real
property or to the indoor or outdoor environment.

          “Hedge Agreement” shall be as defined in the Intercreditor Agreement.

          “Hedging Agreement” means any Interest Rate Agreement, Currency Agreement, Hydrocarbon
Agreement or Commodity Agreement.

          “Holdings” means Alon Refining Louisiana, Inc., a Delaware corporation.

          “Highest Lawful Rate” means the maximum lawful interest rate, if any, that at any time or from
time to time may be contracted for, charged, or received under the laws applicable to Issuing Bank
which are presently in effect or, to the extent allowed by law, under such applicable laws which
may hereafter be in effect and which allow a higher maximum nonusurious interest rate than
applicable laws now allow.

          “Hydrocarbon Agreement” means in respect of a person any purchase or hedging agreement of
hydrocarbons or refined products therefrom, future contract or option or other agreement or
arrangement designed to protect such person against fluctuations in the price of hydrocarbons or
refined products therefrom.

          “Inactive Subsidiary” any subsidiary of Borrower (a) that does not conduct any business
operations, (b) has assets with a book value of $100,000 or less and (c) does not have any
Indebtedness outstanding.

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          “Indebtedness” shall be as defined in the Indenture.

          “Indemnified Liabilities” means, collectively, any and all liabilities, obligations, losses,
damages (including natural resource damages), penalties, claims (including Environmental
Liabilities), actions, judgments, suits, costs (including the costs of any investigation, study,
sampling, testing, abatement, cleanup, removal, remediation or other response action necessary to
remove, remediate, clean up or abate any Hazardous Materials), expenses and disbursements of any
kind or nature whatsoever (including the reasonable fees and disbursements of counsel for
Indemnitees in connection with any investigative, administrative or judicial proceeding or hearing
commenced or threatened by any Person, whether or not any such Indemnitee shall be designated as a
party or a potential party thereto, and any fees or expenses incurred by Indemnitees in enforcing
this indemnity), whether direct, indirect, special or consequential and whether based on any
federal, state or foreign laws, statutes, rules or regulations (including securities and commercial
laws, statutes, rules or regulations and Environmental Laws), on common law or equitable cause or
on contract or otherwise, that may be imposed on, incurred by, or asserted against any such
Indemnitee, in any manner relating to or arising out of (i) this Agreement or the other Credit
Documents or the transactions contemplated hereby or thereby (including the use or intended use of
the proceeds of the Letter of Credit, any amendments, waivers or consents with respect to any
provision of this Agreement or any of the other Credit Documents, or any enforcement of any of the
Credit Documents (including any sale of, collection from, or other realization upon any of the
Collateral)) or (ii) any Environmental Liabilities or any Hazardous Materials activity relating to
or arising from, directly or indirectly, any past or present activity, operation, land ownership,
or practice of Borrower.

          “Indemnitee” as defined in Section 9.3(a).

          “Indenture” means the Indenture dated as of October 22, 2009 between Borrower and Wilmington
Trust FSB, as trustee, as in effect on the date hereof, pursuant to which Borrower issued the
Notes.

          “Intellectual Property” means all intellectual and similar property of a person, including
inventions, designs, patents, copyrights, trademarks, service marks, trade names, trade secrets,
confidential or proprietary information, customer lists, know-how, software and databases; all
embodiments or fixations thereof and all related documentation, applications, registrations and
franchises; all licenses or other rights to use any of the foregoing; and all books and records
relating to the foregoing.

          “Intellectual Property Claim” means any claim or assertion (whether in writing, by suit or
otherwise) that the Borrower’s or any of its subsidiaries’ ownership, use, marketing, sale or
distribution of any Inventory, Equipment, Intellectual Property or other property violates another
person’s Intellectual Property.

          “Intercreditor Agreement” means the Intercreditor Agreement, dated as of October 22, 2009, as
amended, by and between the Note Collateral Agent, the Revolving Collateral Agent, and each Crack
Spread Hedging Secured Party from time to time party thereto, and, upon execution of a joinder
agreement thereto on the date hereof, Issuing Bank.

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          “Interest Rate Agreement” means in respect of a person any interest rate swap agreement,
interest rate cap agreement or other financial agreement or arrangement designed to protect such
person against fluctuations in interest rates.

          “Inventory” shall be as defined in the UCC, including all goods intended for sale, lease,
display or demonstration; all work in process; and all raw materials, crude oil, natural gas,
natural gas liquids, gasoline, diesel, aviation fuel, fuel oil, propane, ethanol, and other
hydrocarbons and other refined products and other materials and supplies of any kind that are or
could be used in connection with the manufacture, printing, packing, shipping, advertising, sale,
lease or furnishing of such goods, or otherwise used or consumed in Borrower’s business (but
excluding Equipment).

          “Investment” in any person means any direct or indirect advance, loan (other than advances to
customers in the ordinary course of business that are recorded as accounts receivable on the
balance sheet of the lender and extensions of trade credit) or other extension of credit (including
by way of Guarantee or similar arrangement) or capital contribution to (by means of any transfer of
cash or other property to others or any payment for property or services for the account or use of
others), or any purchase or acquisition of Equity Interests, Indebtedness or other similar
instruments issued by such person. Except as otherwise provided for herein, the amount of an
Investment shall be its fair value at the time the Investment is made and without giving effect to
subsequent changes in value.

          “Issuance Notice” means an Issuance Notice substantially in the form of Exhibit C.

          “Issuing Bank” means Goldman Sachs Bank USA as Issuing Bank hereunder, together with its
permitted successors and assigns in such capacity.

          “Issuing Bank Affiliate” as defined in Section 9.1(b)(iii).

          “LC Collateral Account” as defined in Section 2.4.

          “LC Disbursement” as defined in Section 2.1(d).

          “LC Exposure” means, at any time, the sum of (a) the undrawn amount of the Letter of Credit at
such time plus (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed
by or on behalf of Borrower at such time.

          “Letter of Credit” means the standby letter of credit in the face amount of $200,000,000 to be
issued by Issuing Bank pursuant to this Agreement in the form of Exhibit A hereto.

          “Lien” means (i) any lien, mortgage, pledge, assignment, security interest, charge or
encumbrance of any kind (including any agreement to give any of the foregoing, any conditional sale
or other title retention agreement, and any lease or license in the nature thereof) and any option,
trust or other preferential arrangement having the practical effect of any of the foregoing and
(ii) in the case of securities, any purchase option, call or similar right of a third party with
respect to such securities.

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          “Margin Stock” shall be as defined in Regulation U of the Board of Governors as in effect from
time to time.

          “Material Adverse Effect” means (a) a materially adverse effect on the business, assets,
results of operations or financial condition of Borrower and its subsidiaries taken as a whole, (b)
a material impairment of the ability of Borrower to perform any of its material obligations under
any Credit Document to which it is or will be a party or (c) a material impairment of the rights of
or benefits available to Issuing Bank under any Credit Document.

          “Material Indebtedness” means Indebtedness (other than the Letter of Credit), or obligations
in respect of one or more Hedge Agreements, of any one or more of Borrower and its subsidiaries in
an aggregate principal amount exceeding $20,000,000. For purposes of determining Material
Indebtedness, the “principal amount” of the obligations of Borrower or any of its subsidiaries in
respect of any Hedge Agreement at any time shall be the maximum aggregate amount (giving effect to
any netting agreements) that Borrower or such subsidiary would be required to pay if such Hedge
Agreement were terminated at such time.

          “Multiemployer Plan” means a “multiemployer plan” as defined in Section 3(37) of ERISA that is
contributed to by Borrower or any of its ERISA Affiliates.

          “NAIC” means The National Association of Insurance Commissioners, and any successor thereto.

          “Non-ABL Obligations” means the Note Obligations and the Crack Spread Hedging Obligations.

          “Non-ABL Priority Collateral” shall be as defined in the Intercreditor Agreement.

          “Note Collateral Agent” means Wilmington Trust FSB acting in its capacity as collateral agent
for the secured parties under the Notes and any successor or assignee thereof.

          “Note Documents” shall be as defined in the Intercreditor Agreement, as such Note Documents
are in effect on the date hereof.

          “Note Obligations” shall be as defined in the Intercreditor Agreement.

          “Notes” means Borrower’s 131⁄2% Secured Notes due 2014 issued
pursuant to the terms and conditions of the Indenture.

          “Obligations” means all obligations of every nature of Borrower, including obligations from
time to time owed to Issuing Bank under any Credit Document or Hedge Agreement entered into with
the Issuing Bank, whether for principal, interest (including interest which, but for the filing of
a petition in bankruptcy with respect to Borrower, would have accrued on any Obligation, whether or
not a claim is allowed against Borrower for such interest in the related bankruptcy proceeding),
reimbursement of amounts drawn under the Letter of Credit, payments for early termination of Hedge
Agreements entered into with the Issuing Bank, fees, expenses, indemnification or otherwise.

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

          “PATRIOT Act” as defined in Section 3.1(n).

          “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA.

          “Pension Plan” means any Employee Benefit Plan, other than a Multiemployer Plan, which is
subject to Section 412 of the Internal Revenue Code or Section 302 of ERISA and is maintained by
Borrower or any of its ERISA Affiliates.

          “Perfection Certificate” means a certificate in a form approved by Issuing Bank setting forth
information required or reasonably requested by Issuing Bank to enable Issuing Bank to determine
whether the Liens created by the Collateral Documents have been properly perfected.

          “Permitted Business” means any business that is the same as, or reasonably related, ancillary
or complementary to, any of the businesses in which Borrower is engaged on the Closing Date and any
business activities reasonably incidental thereto.

          “Permitted Holders” means, individually or collectively in any combination, Alon Israel Oil
Company, Ltd., a private company organized under the laws of Israel, any person that controls Alon
Israel Oil Company, Ltd. as of the Closing Date, and David Wiessman (or any trustee acting on
behalf of David Wiessman), together with any Person that is controlled by any of the foregoing,
individually or collectively in any combination and any “person” (as that term is used in Section
13(d)(3) of the Exchange Act) that is comprised primarily (in terms of economic interests) of any
of the foregoing, individually, collectively or in any combination.

          “Permitted Liens” as defined in Section 6.2.

          “Permitted Note Facility” has the meaning given to such term under the “Credit Agreement”
referred to in the definition of Hapoalim Indebtedness, as such Credit Agreement is in effect on
the date hereof.

          “Permitted Parent Payments” means payments in cash to Parent or any of its subsidiaries on
account of Parent’s corporate expense allocation to Borrower and its subsidiaries; provided
that such payments shall not exceed $8,000,000 per annum.

          “Person” means and includes natural persons, corporations, limited partnerships, general
partnerships, limited liability companies, limited liability partnerships, joint stock companies,
joint ventures, associations, companies, trusts, banks, trust companies, land trusts, business
trusts or other organizations, whether or not legal entities, and Governmental Authorities.

          “Petroleum Product” means crude oil, intermediate feedstocks, blendstocks, and finished and
unfinished petroleum products, including without limitation, asphalt, gasoline, diesel fuels, fuel
oil, jet fuels, and atmospheric gas oil; provided that such term shall not include
solvents.

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          “Plan Assets” means assets of any (i) Employee Benefit Plan subject to Title I of ERISA, (ii)
plan (as defined in Section 4975(e)(1) of the Code) subject to Section 4975 of the Code, or (iii)
governmental plan (as defined in Section 3(32) of ERISA) subject to federal, state or local laws,
rules or regulations substantially similar to Title I of ERISA or Section 4975 of the Code.

          “Pledge and Security Agreement” means the Pledge and Security Agreement to be executed by
Borrower substantially in the form of Exhibit B, as from time to time amended, restated,
supplemented or otherwise modified.

          “Prime Rate” means the rate of interest quoted in the print edition of The Wall Street
Journal, Money Rates Section as the Prime Rate (currently defined as the base rate on corporate
loans posted by at least 75% of the nation’s thirty (30) largest banks), 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 charged to any customer. Issuing Bank may make commercial loans or other loans at
rates of interest at, above or below the Prime Rate.

          “Refinance” means, in respect of any Indebtedness, to refinance, extend, renew, refund, repay,
prepay, redeem, defease or retire, or to issue other Indebtedness in exchange or replacement for,
such Indebtedness. “Refinanced” and “Refinancing” shall have correlative meanings.

          “Refinancing Indebtedness” means Indebtedness that Refinances any Indebtedness of Borrower or
any of its subsidiaries outstanding or permitted to be incurred by Borrower on the Closing Date
under the terms of this Agreement or incurred after the Closing Date in compliance with this
Agreement, including Indebtedness that Refinances Refinancing Indebtedness; provided, however,
that:

     (1) such Refinancing Indebtedness has a Stated Maturity no earlier than the Stated
Maturity of the Indebtedness being Refinanced;

     (2) such Refinancing Indebtedness has an Average Life at the time such Refinancing
Indebtedness is incurred that is equal to or greater than the Average Life of the
Indebtedness being Refinanced; and

     (3) such Refinancing Indebtedness has an aggregate principal amount (or if incurred
with original issue discount, an aggregate issue price) that is equal to or less than the
aggregate principal amount (or if incurred with original issue discount, the aggregate
accreted value) then outstanding or committed (plus fees and expenses, including any premium
and defeasance costs) under the Indebtedness being Refinanced;

     provided further, however, that Refinancing Indebtedness shall not
include Indebtedness of a subsidiary of Borrower that Refinances Indebtedness of Borrower.

          “Reimbursement Date” as defined in Section 2.1(d).

          “Release” means any release, spill, emission, leaking, dumping, injection, pouring, deposit,
disposal, discharge, dispersal, leaching or migration (1) into or through the

15

 

Environment, (2) from any vehicle (including, without limitation, surface vehicles, ships and
aircraft) or (3) within or upon any building, structure, facility, vehicle or fixture.

          “Responsible Officer” of any person means any of the chairman of the board of directors, chief
executive officer and chief financial officer of such person and, with respect to the Borrower
only, Harlin Dean (Vice President and Secretary of Borrower).

          “Restricted Payment” as defined in Section 6.7.

          “SEC” means the U.S. Securities and Exchange Commission.

          “Secured Parties” has the meaning assigned to that term in the Pledge and Security Agreement.

          “Securities Act” means the Securities Act of 1933, as amended from time to time, and any
successor statute.

          “Solvency Certificate” means a Solvency Certificate of the chief financial officer of the
Borrower substantially in the form of Exhibit D.

          “Stated Maturity” means, with respect to any security or obligation, the date specified in
such security as the fixed date on which the final payment of principal of such security or
obligation is due and payable, including pursuant to any mandatory redemption provision (but
excluding any provision providing for the repurchase of such security or obligation at the option
of the holder thereof upon the happening of any contingency unless such contingency has occurred).

          “Stock Purchase Agreement” means the Stock Purchase Agreement dated as of May 7, 2008, among
Valero, the Borrower and, for the limited purposes set forth therein, Valero Refining
Company-Louisiana, together with all definitive schedules, exhibits and other agreements effecting
the terms thereof or related thereto (including agreements identified therein as the “Other
Agreements”).

          “subsidiary” means, with respect to any person (herein referred to as the “parent”), any
corporation, partnership, association or other business entity (a) of which securities or other
ownership interests representing more than 50% of the equity or more than 50% of the ordinary
voting power or more than 50% of the general partnership interests are, at the time any
determination is being made, owned, controlled or held, or (b) that is, at the time any
determination is made, otherwise Controlled, by the parent or one or more subsidiaries of the
parent or by the parent and one or more subsidiaries of the parent.

          “Supply and Offtake Agreement” means the Supply and Offtake Agreement dated as of April 21,
2010 between Borrower and J. Aron & Company, as the same may be amended or otherwise modified from
time to time.

          “Tax” means any present or future tax, levy, impost, duty, assessment, charge, fee, deduction
or withholding of any nature and whatever called, by whomsoever, on whomsoever and wherever
imposed, levied, collected, withheld or assessed; provided, “Tax on

16

 

the overall net income” of a Person shall be construed as a reference to a tax imposed by the
jurisdiction in which that Person is organized or in which that Person’s applicable principal
office (and/or, in the case of Issuing Bank, its issuing office) is located or in which that Person
(and/or, in the case of Issuing Bank, its issuing office) is deemed to be doing business on all or
part of the net income, profits or gains (whether worldwide, or only insofar as such income,
profits or gains are considered to arise in or to relate to a particular jurisdiction, or
otherwise) of that Person (and/or, in the case of Issuing Bank, its issuing office).

          “Transactions” as defined in Section 4.2.

          “UCC” means the Uniform Commercial Code (or any similar or equivalent legislation) as in
effect from time to time in any applicable jurisdiction.

          “Valero” means Valero Refining and Marketing Company, a Delaware corporation

          “Voting Stock” of a person means all classes of Equity Interests or other interests (including
partnership interests) of such person then outstanding and normally entitled (without regard to the
occurrence of any contingency) to vote in the election of directors, managers or trustees thereof.

     1.2. Accounting Terms. Except as otherwise expressly provided herein, all accounting terms
not otherwise defined herein shall have the meanings assigned to them in conformity with GAAP.
Financial statements and other information required to be delivered by Borrower to Issuing Bank
pursuant to Section 5.4 shall be prepared in accordance with GAAP as in effect at the time of such
preparation.

     1.3. Interpretation, Etc. Any of the terms defined herein may, unless the context otherwise
requires, be used in the singular or the plural, depending on the reference. References herein to
any Section, Appendix, Schedule or Exhibit shall be to a Section, an Appendix, a Schedule or an
Exhibit, as the case may be, hereof unless otherwise specifically provided. The use herein of the
word “include” or “including”, when following any general statement, term or matter, shall not be
construed to limit such statement, term or matter to the specific items or matters set forth
immediately following such word or to similar items or matters, whether or not non-limiting
language (such as “without limitation” or “but not limited to” or words of similar import) is used
with reference thereto, but rather shall be deemed to refer to all other items or matters that fall
within the broadest possible scope of such general statement, term or matter. The terms lease and
license shall include sub-lease and sub-license, as applicable.

     SECTION 2.THE LETTER OF CREDIT

     2.1. Issuance of the Letter of Credit.

     (a) Letter of Credit. Subject to the terms and conditions hereof, Issuing Bank agrees
to issue the Letter of Credit for the account of Borrower in the face amount of $200,000,000. The
Letter of Credit shall be issued for the benefit of J. Aron & Company and shall expire on July 31,
2012.

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     (b) Notice of Issuance. Borrower has delivered to Issuing Bank an Issuance Notice on
the date hereof. Upon satisfaction or waiver of the conditions set forth in Section 3.1, Issuing
Bank shall issue the Letter of Credit in accordance with Issuing Bank’s standard operating
procedures.

     (c) Responsibility of Issuing Bank With Respect to Requests for Drawings and Payments.
In determining whether to honor any drawing under the Letter of Credit by the beneficiary thereof,
Issuing Bank shall be responsible only to examine the documents delivered under the Letter of
Credit with reasonable care so as to ascertain whether they appear on their face to be in
accordance with the terms and conditions of the Letter of Credit. As between Borrower and Issuing
Bank, Borrower assumes all risks of the acts and omissions of, or misuse of the Letter of Credit,
by the beneficiary or transferee thereof. In furtherance and not in limitation of the foregoing,
Issuing Bank shall not be responsible for: (i) the form, validity, sufficiency, accuracy,
genuineness or legal effect of any document submitted by any party in connection with the
application for and issuance of the Letter of Credit, even if it should in fact prove to be in any
or all respects invalid, insufficient, inaccurate, fraudulent or forged; (ii) the validity or
sufficiency of any instrument transferring or assigning or purporting to transfer or assign the
Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part,
which may prove to be invalid or ineffective for any reason; (iii) failure of the beneficiary of
the Letter of Credit to comply fully with any conditions required in order to draw on the Letter of
Credit; (iv) errors, omissions, interruptions or delays in transmission or delivery of any
messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher; (v)
errors in interpretation of technical terms; (vi) any loss or delay in the transmission or
otherwise of any document required in order to make a drawing under the Letter of Credit or of the
proceeds thereof; (vii) the misapplication by the beneficiary of the Letter of Credit of the
proceeds of any drawing under the Letter of Credit; or (viii) any consequences arising from causes
beyond the control of Issuing Bank, including any Governmental Acts; none of the above shall affect
or impair, or prevent the vesting of, any of Issuing Bank’s rights or powers hereunder. Without
limiting the foregoing and in furtherance thereof, any action taken or omitted by Issuing Bank
under or in connection with the Letter of Credit or any documents and certificates delivered
thereunder, if taken or omitted in good faith, shall not give rise to any liability on the part of
Issuing Bank to Borrower. Notwithstanding anything to the contrary contained in this Section
2.1(c), Borrower shall retain any and all rights it may have against Issuing Bank for any liability
arising solely out of the gross negligence or willful misconduct of Issuing Bank as determined by a
final, non-appealable judgment of a court of competent jurisdiction.

     (d) Reimbursement by Borrower of Amounts Drawn or Paid Under the Letter of Credit. In
the event Issuing Bank has determined to honor a drawing under the Letter of Credit, it shall
immediately notify Borrower, and Borrower shall reimburse Issuing Bank on or before the Business
Day immediately following the date on which such drawing is honored (the “Reimbursement Date”) in
an amount in Dollars and in same day funds equal to the amount of such honored drawing (an “LC
Disbursement”); provided that any failure to give or delay in giving notice of an LC Disbursement
shall not relieve Borrower of its obligation to reimburse Issuing Bank with respect to any such LC
Disbursement.

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     (e) Obligations Absolute. The obligation of Borrower to reimburse Issuing Bank for
drawings honored under the Letter of Credit shall be unconditional and irrevocable and shall be
paid strictly in accordance with the terms hereof under all circumstances including any of the
following circumstances: (i) any lack of validity or enforceability of the Letter of Credit; (ii)
the existence of any claim, set-off, defense or other right which Borrower may have at any time
against the beneficiary or any transferee of the Letter of Credit (or any Person for whom any such
transferee may be acting), Issuing Bank or any other Person, whether in connection herewith, the
transactions contemplated herein or any unrelated transaction (including any underlying transaction
between Borrower and the beneficiary of the Letter of Credit); (iii) any draft or other document
presented under the Letter of Credit proving to be forged, fraudulent, invalid or insufficient in
any respect or any statement therein being untrue or inaccurate in any respect; (iv) payment by
Issuing Bank under the Letter of Credit against presentation of a draft or other document which
does not substantially comply with the terms of the Letter of Credit; (v) any adverse change in the
business, operations, properties, assets, condition (financial or otherwise) or prospects of
Borrower; (vi) any breach hereof or any other Credit Document by any party thereto; (vii) any other
circumstance or happening whatsoever, whether or not similar to any of the foregoing; or (viii) the
fact that an Event of Default or a Default shall have occurred and be continuing.

     (f) Indemnification. Without limiting any obligation of Borrower under Section 9.2 or
9.3, in addition to amounts payable as provided herein, Borrower hereby agrees to protect,
indemnify, pay and save harmless Issuing Bank from and against any and all claims, demands,
liabilities, damages, losses, costs, charges and expenses (including reasonable fees, expenses and
disbursements of outside counsel) which Issuing Bank may incur or be subject to as a consequence,
direct or indirect, of (i) the issuance of the Letter of Credit by Issuing Bank, other than as a
result of (1) the gross negligence or willful misconduct of Issuing Bank as determined by a final,
non-appealable judgment of a court of competent jurisdiction or (2) the wrongful dishonor by
Issuing Bank of a proper demand for payment made under the Letter of Credit issued by it, or (ii)
the failure of Issuing Bank to honor a drawing under any the Letter of Credit as a result of any
Governmental Act.

     2.2. Interest on LC Disbursements.

     (a) Borrower agrees to pay to Issuing Bank, with respect to any LC Disbursement, interest on
the amount paid by Issuing Bank in respect of each such LC Disbursement from the date of such LC
Disbursement to but excluding the date such amount is reimbursed by or on behalf of Borrower at a
rate equal to (i) for the period from the date of such LC Disbursement to but excluding the
applicable Reimbursement Date, at the Base Rate plus 3% per annum and (ii) thereafter, at the Base
Rate plus 5% per annum.

     (b) Interest payable pursuant to Section 2.2(a) shall be computed on the basis of a
365/366-day year for the actual number of days elapsed in the period during which it accrues, and
shall be payable on demand or, if no demand is made, on the date on which the LC Disbursement is
reimbursed in full.

     2.3. Fees.

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          Borrower agrees to pay to Issuing Bank the fees provided for in the separate fee letter dated
as of the date hereof between Borrower and Issuing Bank.

     2.4. Cash Collateralization.

     If any Event of Default shall occur and be continuing, in addition to any other remedy it may
have, Issuing Bank may require Borrower to deposit and maintain in an account with Issuing Bank, in
the name of Issuing Bank (the “LC Collateral Account”), an amount in cash equal to the LC Exposure
as in effect from time to time; provided that the obligation of Borrower to deposit such
cash collateral shall become effective on the third Business Day after Borrower receives written
notice from Issuing Bank requesting such cash collateral.

     2.5. General Provisions Regarding Payments.

     (a) All payments by Borrower of principal, interest, fees and other Obligations shall be made
in Dollars in same day funds, without defense, recoupment, setoff or counterclaim, free of any
restriction or condition, and delivered to Issuing Bank not later than 12:00 p.m. (New York City
time) on the date due at the payment office of Issuing Bank; for purposes of computing interest and
fees, funds received by Issuing Bank after that time on such due date shall be deemed to have been
paid by Borrower on the next succeeding Business Day.

     (b) Borrower hereby authorizes Issuing Bank to charge Borrower’s accounts with Issuing Bank in
order to cause timely payment to be made to Issuing Bank of all principal, interest, fees and
expenses due hereunder (subject to sufficient funds being available in its accounts for that
purpose).

     (c) Issuing Bank shall deem any payment by or on behalf of Borrower hereunder that is not made
in same day funds prior to 12:00 p.m. (New York City time) to be a non-conforming payment. Any
such payment shall not be deemed to have been received by Issuing Bank until the later of (i) the
time such funds become available funds, and (ii) the applicable next Business Day. Issuing Bank
shall give prompt telephonic notice to Borrower (confirmed in writing) if any payment is
non-conforming. Any non-conforming payment may constitute or become a Default or Event of Default
in accordance with the terms of Section 8. Interest shall continue to accrue on any principal as
to which a non-conforming payment is made until such funds become available funds (but in no event
less than the period from the date of such payment to the next succeeding applicable Business Day)
at the rate determined pursuant to Section 2.2 from the date such amount was due and payable until
the date such amount is paid in full.

     (d) Any proceeds of Collateral received by Issuing Bank shall be applied first, to pay
any fees, indemnities, or expense reimbursements including amounts then due to Issuing Bank from
Borrower, second, to pay interest due in respect of unreimbursed LC Disbursements,
third, to pay unreimbursed LC Disbursements, fourth, to pay an amount to Issuing
Bank equal to 100% of the undrawn face amount of the Letter of Credit, to be held as cash
collateral for such Obligations, and fifth, to the payment of any other Obligation due to
Issuing Bank by Borrower. Issuing Bank 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 Obligations.

20

 

     (e) If after receipt of any payment which is applied to the payment of all or any part of the
Obligations, Issuing Bank is for any reason compelled to surrender such payment or proceeds to any
Person because such payment or application of proceeds is invalidated, declared fraudulent, set
aside, determined to be void or voidable as a preference, impermissible setoff, or a diversion of
trust funds, or for any other reason, then the Obligations or part thereof intended to be satisfied
shall be revived and continued and this Agreement shall continue in full force as if such payment
or proceeds had not been received by Issuing Bank. The provisions of this Section 2.5(e) shall be
and remain effective notwithstanding any contrary action which may have been taken by Issuing Bank
in reliance upon such payment or application of proceeds. The provisions of this Section 2.5(e)
shall survive the termination of this Agreement.

     2.6. Increased Costs; Capital Adequacy.

     (a) Compensation For Increased Costs and Taxes. Subject to the provisions of Section
2.7 (which shall be controlling with respect to the matters covered thereby), in the event that
Issuing Bank shall determine (which determination shall, absent manifest error, be final and
conclusive and binding upon all parties hereto) that any law, treaty or governmental rule,
regulation or order, or any change therein or in the interpretation, administration or application
thereof (including the introduction of any new law, treaty or governmental rule, regulation or
order), or any determination of a court or governmental authority, in each case that becomes
effective after the date hereof, or compliance by Issuing Bank with any guideline, request or
directive issued or made after the date hereof by any central bank or other governmental or
quasi-governmental authority (whether or not having the force of law): (i) subjects Issuing Bank
(or its applicable issuing office) to any additional Tax (other than any Tax on the overall net
income of Issuing Bank) with respect to this Agreement or any of the other Credit Documents or any
of its obligations hereunder or thereunder or any payments to Issuing Bank (or its applicable
issuing office) of principal, interest, fees or any other amount payable hereunder; (ii) imposes,
modifies or holds applicable any reserve (including any marginal, emergency, supplemental, special
or other reserve), special deposit, compulsory loan, FDIC insurance or similar requirement against
assets held by, or deposits or other liabilities in or for the account of, or advances or loans by,
or other credit extended by, or any other acquisition of funds by, any office of Issuing Bank; or
(iii) imposes any other condition (other than with respect to a Tax matter) on or affecting (or its
issuing office) or its obligations hereunder; and the result of any of the foregoing is to increase
the actual cost to Issuing Bank of agreeing to issue, issuing or maintaining the Letter of Credit
or to reduce any amount received or receivable by Issuing Bank (or its issuing office) with respect
thereto; then, in any such case, Borrower shall promptly pay to Issuing Bank, upon receipt of the
statement referred to in the next sentence, such additional amount or amounts (in the form of an
increased rate of, or a different method of calculating, interest or otherwise as Issuing Bank in
its sole discretion shall determine) as may be necessary to compensate Issuing Bank for any such
increased cost or reduction in amounts received or receivable hereunder. Issuing Bank shall
deliver to Borrower a written statement, setting forth in reasonable detail the basis for
calculating the additional amounts owed to such Issuing Bank under this Section 2.6(a), which
statement shall be conclusive and binding upon all parties hereto absent manifest error.

     (b) Capital Adequacy Adjustment. In the event that Issuing Bank shall have determined
that the adoption, effectiveness, phase-in or applicability after the Closing Date of

21

 

any law, rule or regulation (or any provision thereof) regarding capital adequacy, or any
change therein or in the interpretation or administration thereof by any Governmental Authority,
central bank or comparable agency charged with the interpretation or administration thereof, or
compliance by Issuing Bank (or its applicable issuing office) with any guideline, request or
directive regarding capital adequacy (whether or not having the force of law) of any such
Governmental Authority, central bank or comparable agency, has or would have the effect of reducing
the rate of return on the capital of Issuing Bank or any corporation controlling Issuing Bank as a
consequence of, or with reference to, the Letter of Credit, or participations therein or other
obligations hereunder with respect to the Letter of Credit to a level below that which Issuing Bank
or such controlling corporation could have achieved but for such adoption, effectiveness, phase-in,
applicability, change or compliance (taking into consideration the policies of Issuing Bank or such
controlling corporation with regard to capital adequacy), then from time to time, within five
Business Days after receipt by Borrower from Issuing Bank of the statement referred to in the next
sentence, Borrower shall pay to Issuing Bank such additional amount or amounts as will compensate
Issuing Bank or such controlling corporation on an after-tax basis for such reduction. Issuing Bank
shall deliver to Borrower a written statement, setting forth in reasonable detail the basis for
calculating the additional amounts owed to Issuing Bank under this Section 2.6(b), which statement
shall be conclusive and binding upon all parties hereto absent manifest error.

     2.7. Taxes; Withholding, Etc.

     (a) Payments to Be Free and Clear. All sums payable by or on behalf of Borrower
hereunder and under the other Credit Documents shall (except to the extent required by law) be paid
free and clear of, and without any deduction or withholding on account of, any Tax (other than a
Tax on the overall net income of Issuing Bank) imposed, levied, collected, withheld or assessed by
or within the United States of America or any political subdivision in or of the United States of
America or any other jurisdiction from or to which a payment is made by or on behalf of Borrower or
by any federation or organization of which the United States of America or any such jurisdiction is
a member at the time of payment.

     (b) Withholding of Taxes. If Borrower or any other Person is required by law to make
any deduction or withholding on account of any such Tax from any sum paid or payable by Borrower to
Issuing Bank under any of the Credit Documents: (i) Borrower shall notify Issuing Bank of any such
requirement or any change in any such requirement as soon as Borrower becomes aware of it; (ii)
Borrower shall pay any such Tax before the date on which penalties attach thereto, such payment to
be made (if the liability to pay is imposed on Borrower) for its own account or (if that liability
is imposed on Issuing Bank; (iii) the sum payable by Borrower in respect of which the relevant
deduction, withholding or payment is required shall be increased to the extent necessary to ensure
that, after the making of that deduction, withholding or payment, Issuing Bank, receives on the due
date a net sum equal to what it would have received had no such deduction, withholding or payment
been required or made; and (iv) within thirty days after paying any sum from which it is required
by law to make any deduction or withholding, and within thirty days after the due date of payment
of any Tax which it is required by clause (ii) above to pay, Borrower shall deliver to Issuing Bank
evidence satisfactory to the other affected parties of such deduction, withholding or payment and
of the remittance thereof to the relevant taxing or other authority; provided, no such additional
amount shall be required to be paid to

22

 

Issuing Bank under clause (iii) above except to the extent that any change after the date
hereof in any such requirement for a deduction, withholding or payment as is mentioned therein
shall result in an increase in the rate of such deduction, withholding or payment from that in
effect at the date hereof in respect of all payments to Issuing Bank.

     2.8. Obligation to Mitigate. Issuing Bank agrees that, as promptly as practicable after the
officer of Issuing Bank responsible for administering the Letter of Credit becomes aware of the
occurrence of an event or the existence of a condition that would entitle Issuing Bank to receive
payments under Section 2.6 or 2.7, it will, to the extent not inconsistent with the internal
policies of Issuing Bank and any applicable legal or regulatory restrictions, use reasonable
efforts to (a) issue or maintain the Letter of Credit through another office of Issuing Bank, or
(b) take such other measures as Issuing Bank may deem reasonable, if as a result thereof the
circumstances which would cause Issuing Bank to incur increased costs would cease to exist or the
additional amounts which would otherwise be required to be paid to Issuing Bank pursuant to Section
2.6 or 2.7 would be materially reduced and if, as determined by Issuing Bank in its sole
discretion, the issuing or maintaining of the Letter of Credit through such other office or in
accordance with such other measures, as the case may be, would not otherwise adversely affect the
Letter of Credit or the interests of Issuing Bank; provided, Issuing Bank will not be
obligated to utilize such other office pursuant to this Section 2.8 unless Borrower agrees to pay
all incremental expenses incurred by Issuing Bank as a result of utilizing such other office as
described above. A certificate as to the amount of any such expenses payable by Borrower pursuant
to this Section 2.8 (setting forth in reasonable detail the basis for requesting such amount)
submitted by Issuing Bank to Borrower shall be conclusive absent manifest error.

     SECTION 3. CONDITIONS PRECEDENT

     3.1. Closing Date. The obligation of Issuing Bank to issue the Letter of Credit is subject to
the satisfaction, or waiver by Issuing Bank, of the following conditions:

     (a) Credit Documents. Issuing Bank shall have received a counterpart of each Credit
Document originally executed and delivered by Borrower.

     (b) Organizational Documents; Incumbency. Borrower shall have received (i) a copy of
the certificate or articles of incorporation or other organizational documents, including all
amendments thereto, of Borrower, certified as of a recent date by the Secretary of State of the
State of Delaware, and a certificate as to the good standing of Borrower as of a recent date from
such Secretary of State; (ii) a certificate of the Secretary or Assistant Secretary of Borrower
dated the Closing Date and certifying (A) that attached thereto is a true and complete copy of the
by-laws or comparable document of Borrower as in effect on the Closing Date and at all times since
a date prior to the date of the resolutions described in clause (B) below, (B) that attached
thereto is a true and complete copy of resolutions duly adopted by the Board of Directors or other
governing body of Borrower authorizing the execution, delivery and performance of the Credit
Documents to which Borrower is a party and the issuance of the Letter of Credit, and that such
resolutions have not been modified, rescinded or amended and are in full force and effect, (C) that
the certificate or articles of incorporation or other organizational documents of Borrower have not
been amended since the date of the copy certified by the Secretary of State furnished pursuant to
clause (i) above, and (D) as to the incumbency and specimen signature of each

23

 

officer executing any Credit Document or any other document delivered in connection herewith
on behalf of Borrower; (iii) a certificate of another officer as to the incumbency and specimen
signature of the Secretary or Assistance Secretary executing the certificate pursuant to (ii)
above; and (iv) such other documents as Issuing Bank may reasonably request.

     (c) Hapoalim Indebtedness. Borrower shall have delivered to Issuing Bank all
documents or instruments necessary to release all Liens on the ABL Priority Collateral securing the
Hapoalim Indebtedness or other obligations of Borrower to Bank Hapoalim B.M. and shall have
obtained written confirmation from Bank Hapoalim B.M. reasonably satisfactory to Issuing Bank that
such Liens have been terminated.

     (d) Transaction Costs. Issuing Bank shall have received all amounts due and payable
on or prior to the date of issuance of the Letter of Credit, including, to the extent invoiced,
reimbursement or payment of all out-of-pocket costs and expenses required to be reimbursed or paid
by Borrower hereunder or under any other Credit Document.

     (e) Governmental Authorizations and Consents. Borrower shall have obtained all
Governmental Authorizations and all consents of other Persons, in each case that are necessary or
advisable in connection with the transactions contemplated by the Credit Documents and each of the
foregoing shall be in full force and effect and in form and substance reasonably satisfactory to
Issuing Bank.

     (f) Personal Property Collateral. In order to create in favor of Issuing Bank a
valid, perfected First Priority security interest in the Collateral, Issuing Bank shall have
received evidence satisfactory to Issuing Bank of the compliance by Borrower of its obligations
under the Collateral Documents (including its obligations to execute and deliver UCC financing
statements, originals of securities, instruments and chattel paper and any agreements governing
deposit and/or securities accounts as provided therein);

     (g) [Reserved.]

     (h) Evidence of Insurance. Issuing Bank shall have received a certificate from
Borrower’s insurance broker or other evidence satisfactory to it that all insurance required to be
maintained pursuant to Section 5.2 is in full force and effect, together with endorsements naming
Issuing Bank as additional insured and loss payee thereunder to the extent required under Section
5.2.

     (i) Opinions of Counsel to Borrower. Issuing Bank and its counsel shall have received
originally executed copies of the favorable written opinions of Jones Day, counsel for Borrower, in
the form of Exhibit G and as to such other matters as Issuing Bank may reasonably request, dated as
of the Closing Date and otherwise in form and substance reasonably satisfactory to Issuing Bank
(and Borrower hereby instructs such counsel to deliver such opinions to Issuing Bank).

     (j) Fees. Borrower shall have paid to Issuing Bank the fees payable on or before the
Closing Date referred to in the fee letter referenced in Section 2.3 and all expenses payable
pursuant to Section 9.2 which have accrued to the Closing Date.

24

 

     (k) Solvency Certificate. Issuing Bank shall have received a certificate from the
chief financial officer of the Borrower, in form and substance satisfactory to Issuing Bank,
certifying that Borrower after giving effect to the transactions contemplated hereby, is solvent.

     (l) Closing Date Certificate. Borrower shall have delivered to Issuing Bank an
originally executed Closing Date Certificate, together with all attachments thereto.

     (m) No Litigation. There shall not exist any action, suit, investigation, litigation,
proceeding, hearing or other legal or regulatory developments, pending or threatened in any court
or before any arbitrator or Governmental Authority that, in the reasonable opinion of Issuing Bank,
singly or in the aggregate, materially impairs the transactions contemplated by the Credit
Documents, or that could reasonably be expected to have a Material Adverse Effect.

     (n) Patriot Act. At least 10 days prior to the Closing Date, Issuing Bank shall have
received all documentation and other information required by bank regulatory authorities under
applicable “know-your-customer” and anti-money laundering rules and regulations, including the
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001) the “PATRIOT Act”).

     (o) Collateral Certificate. Issuing Bank shall have received a Collateral Certificate
as of May 28, 2010.

     (p) Intercreditor Agreement. Issuing Bank shall have executed a joinder to or other
instrument under the Intercreditor Agreement confirming that Issuing Bank, as Collateral Agent
under Section 9.23 of this Agreement, has qualified as a “New Agent” under Section 5.05 of the
Intercreditor Agreement and thereby qualifies as the “Revolving Collateral Agent” under the
Intercreditor Agreement, thereby causing all Obligations owing to the Issuing Bank to constitute
“Revolving Obligations” under the Intercreditor Agreement and giving the full benefit of the
Intercreditor Agreement to the Issuing Bank.

     3.2. Additional Conditions to Issuance of Letter of Credit. The obligation of Issuing Bank to
issue the Letter of Credit is subject to the satisfaction, or waiver by Issuing Bank, of the
following additional conditions precedent:

     (i) Issuing Bank shall have received a fully executed and delivered Issuance Notice;

     (ii) the representations and warranties contained herein and in the other Credit
Documents shall be true and correct in all material respects; provided that, in each
case, such materiality qualifier shall not be applicable to any representations and
warranties that already are qualified or modified by materiality in the text thereof; and

     (iii) no event shall have occurred and be continuing or would result from the issuance
of Letter of Credit that would constitute an Event of Default or a Default.

25

 

     SECTION 4. REPRESENTATIONS AND WARRANTIES

          In order to induce Issuing Bank to enter into this Agreement and to issue the Letter of
Credit, Borrower represents and warrants that:

     4.1. Organization; Powers. Borrower (a) is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization, (b) has all requisite power and
authority to own its property and assets and to carry on its business as now conducted and as
proposed to be conducted, (c) is qualified to do business in, and is in good standing in, every
jurisdiction where such qualification is required, except where the failure so to qualify could not
reasonably be expected to result in a Material Adverse Effect, and (d) has the power and authority
to execute, deliver and perform its obligations under each of the Credit Documents and each other
agreement or instrument contemplated thereby to which it is or will be a party and to borrow
hereunder.

     4.2. Authorization. The execution, delivery and performance by Borrower of each of the Credit
Documents to which it is a party, the extension of credit hereunder, the creation of the Liens
created by the Collateral Documents and the other transactions contemplated hereby (collectively,
the “Transactions”) (a) have been duly authorized by all requisite corporate and, if required,
stockholder action of Borrower and (b) will not (i) violate (A) any provision of law, statute, rule
or regulation, or of the certificate or articles of incorporation or other constitutive documents
or by-laws, of Borrower, (B) any order of any Governmental Authority or (C) any provision of any
indenture, agreement or other instrument in respect of Material Indebtedness or any other material
agreement to which Borrower is a party or by which it or any of its property is or may be bound,
(ii) be in conflict with, result in a breach of or constitute (alone or with notice or lapse of
time or both) a default under, or give rise to any right to accelerate or to require the
prepayment, repurchase or redemption of any obligation under any such indenture, agreement or other
instrument in respect of Material Indebtedness or any other material agreement or (iii) result in
the creation or imposition of any Lien upon or with respect to any property or assets now owned or
hereafter acquired by Borrower or any of its subsidiaries (other than any Lien created hereunder or
under the Collateral Documents). Each of Borrower and its subsidiaries has been duly designated
as, and constitutes, an “Unrestricted Subsidiary” under, and as defined in, the Existing Parent
Term Credit Agreement. Borrower and its subsidiaries have been duly designated as, and constitute,
“Alon Louisiana Subsidiaries” under, and as defined in, the Existing Parent Revolving Credit
Agreement, and the provisions of the Waiver, Consent, Partial Release and Fourth Amendment dated as
of July 2, 2008 executed in connection with the Existing Parent Revolving Credit Agreement have not
been amended or otherwise modified.

     4.3. Enforceability. This Agreement has been duly executed and delivered by Borrower and
constitutes, and each other Credit Document when executed and delivered by Borrower will
constitute, a legal, valid and binding obligation of Borrower enforceable against Borrower in
accordance with its terms (subject to applicable bankruptcy, reorganization, insolvency, moratorium
or similar laws affecting creditors’ rights generally and subject, as to enforceability, to
equitable principles of general application (regardless of whether enforcement is sought in a
proceeding in equity or at law)).

26

 

     4.4. Governmental Approvals. No action, consent or approval of, registration or material
filing with or other action by any Governmental Authority is or will be required in connection with
the Transactions, except for (a) the filing of UCC financing statements and (b) those which will
have been made or obtained and which will be in full force and effect on the Closing Date.

     4.5. Financial Statements. The financial statements of Borrower contained in Borrower’s
registration statement on Form S-4 (registration number 333-163942) filed with the SEC on December
12, 2009, at the time such registration statement became effective, present fairly, in all material
respects, the financial condition and results of operations and cash flows of Borrower and its
consolidated subsidiaries as of such dates and for such periods. The balance sheets incorporated
therein, and, with respect to the annual and quarterly statements, the notes thereto incorporated
therein, disclose all material liabilities, direct or contingent, of Borrower and its consolidated
subsidiaries as of the dates thereof. Such financial statements were prepared in accordance with
GAAP applied on a consistent basis.

     4.6. Material Adverse Change. Since December 31, 2009, no event or condition has occurred or
existed that has resulted, or could reasonably be expected to result, in a materially adverse
effect on the business, assets, results of operations, financial condition or prospects of Borrower
and its subsidiaries, taken as a whole (other than any event or condition disclosed by Borrower in
a filing available on the SEC’s EDGAR service on or before May 11, 2010).

     4.7. Title to Properties; Possession Under Leases.

     (a) Borrower and each of its subsidiaries has good and indefeasible title to, or good and
valid leasehold interests in, all its material properties and assets, except for Permitted Liens
and minor defects in title that in each case or in the aggregate do not materially interfere with
its ability to conduct its business as currently conducted or to utilize such properties and assets
for their intended purposes. All such material properties and assets are free and clear of Liens,
other than Liens expressly permitted by Section 6.2.

     (b) Borrower and each of its subsidiaries has complied with all material obligations under all
leases to which it is a party and all such leases are in full force and effect. Borrower and each
of its subsidiaries enjoys peaceful and undisturbed possession under all such material leases where
Borrower and each of its subsidiaries is a lessee.

     4.8. Subsidiaries. Borrower has no subsidiaries.

     4.9. Litigation; Compliance with Laws. (a) Except as set forth on Schedule 4.9, there are not
any actions, suits or proceedings at law or in equity or by or before any Governmental Authority
now pending or, to the knowledge of Borrower, threatened against or affecting Borrower or any of
its subsidiaries or any business, property or rights of any such person (i) that involve any Credit
Document or the Transactions or (ii) as to which there is a reasonable possibility of an adverse
determination and that, if adversely determined, could reasonably be expected, individually or in
the aggregate, to result in a Material Adverse Effect.

     (b) None of Borrower or any of its subsidiaries or any of their respective material properties
or assets is in violation of, nor will the continued operation of their material properties

27

 

and assets as currently conducted violate, any law, rule or regulation (including any zoning,
building, Environmental Law, ordinance, code or approval or any building permits) or any
restrictions of record or agreements affecting any such material properties, or is in default with
respect to any judgment, writ, injunction, decree or order of any Governmental Authority, where
such violation or default could reasonably be expected to result in a Material Adverse Effect.

     4.10. Agreements. (a) Neither Borrower nor any of its subsidiaries is a party to any
agreement or instrument or subject to any corporate restriction that has resulted or could
reasonably be expected to result in a Material Adverse Effect.

     (b) Neither Borrower nor any of its subsidiaries (nor, to the knowledge of Borrower or any of
its subsidiaries, any other person) is in default in any manner under any provision of any
indenture or other agreement or instrument evidencing Material Indebtedness (including the Supply
and Offtake Agreement or any ExxonMobil Pipeline Supply Contract), or any other material agreement
or instrument to which it is a party or by which it or any of its properties or assets are or may
be bound, where such default could reasonably be expected to result in a Material Adverse Effect.

     4.11. Federal Reserve Regulations. Neither 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 of buying or carrying Margin Stock, nor does Borrower or any of its subsidiaries own any
Margin Stock.

     4.12. Investment Company Act. Borrower is not an “investment company” as defined in, or
subject to regulation under, the Investment Company Act of 1940, nor is Borrower controlled by or
an underwriter of such an “investment company”.

     4.13. [Reserved.]

     4.14. Tax Returns. Each of Borrower and its subsidiaries has filed or caused to be filed all
federal, state, local and foreign Tax returns or materials required to have been filed by it and
has paid or caused to be paid all Taxes due and payable by it and all assessments received by it,
except Taxes that are being contested in good faith by appropriate proceedings and for which
Borrower or such subsidiary, as applicable, has set aside on its books adequate reserves.

     4.15. No Material Misstatements. No information, report, financial statement, exhibit or
schedule furnished by or on behalf of Borrower to Issuing Bank in connection with the negotiation
of any Credit Document or included therein or delivered pursuant thereto contained or contains any
material misstatement of fact or omitted or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were or are made, not
misleading; provided that to the extent such information, report, financial statement, exhibit or
schedule was based upon or constitutes a forecast or projection, Borrower represents only that it
acted in good faith and utilized assumptions believed to be reasonable in light of the
circumstances when made and due care in the preparation of such information, report, financial
statement, exhibit or schedule.

     4.16. ERISA. With respect to Employee Benefit Plans maintained by Borrower or its ERISA
Affiliates, each of Borrower and its ERISA Affiliates is in compliance in all material

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respects with the applicable provisions of ERISA and the Code and the regulations and
published interpretations thereunder, except where such noncompliance could not reasonably be
expected to result in a Material Adverse Effect. No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events, could reasonably be
expected to result in material liability of Borrower. The consummation of the transactions
contemplated by this Agreement will not constitute or result in any non-exempt prohibited
transaction under Section 406 of ERISA, Section 4975 of the Code or substantially similar
provisions under federal, state or local laws, rules or regulations.

     4.17. Environmental Matters. Except as set forth in Schedule 4.17 and except with respect to
any other matters that, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect, neither Borrower nor any of its subsidiaries (i) has failed to
comply with any Environmental Law or to obtain, maintain or comply with any permit, license or
other approval required under any Environmental Law, (ii) is subject to any Environmental
Liability, (iii) has received notice of any claim with respect to any Environmental Liability or
(iv) knows of any basis for any Environmental Liability. Borrower has delivered to Issuing Bank
(or otherwise provided Issuing Bank access to) copies of all third party reports prepared since
February 1, 2008 relating to Environmental Liability of Borrower.

     4.18. Insurance. Schedule 4.18 sets forth a true, complete and correct description of all
insurance maintained by Borrower or by Borrower for its subsidiaries or otherwise covering the
Collateral as of the date hereof and the Closing Date. As of such date, such insurance is in full
force and effect and all premiums have been duly paid. Borrower and its subsidiaries have
insurance in such amounts and covering such risks and liabilities as are in accordance with normal
industry practice.

     4.19. Collateral Documents. The Pledge and Security Agreement is effective to create in favor
of Issuing Bank a legal, valid and enforceable security interest in the Collateral (as defined in
the Pledge and Security Agreement) and, when the deliveries of certificates representing pledged
Equity Interests and Indebtedness that are certificated have been made and financing statements in
appropriate form have been filed in the offices specified on Schedule 5 to the Perfection
Certificate, the Pledge and Security Agreement shall constitute a fully perfected Lien on, and
security interest in, all right, title and interest of the grantors thereunder in such Collateral
(other than the security interests in such Collateral not required to be perfected pursuant to the
terms of the Pledge and Security Agreement), in each case prior and superior in right to any other
person, other than with respect to Liens expressly permitted by Section 6.2 and as otherwise
provided in the Intercreditor Agreement, where applicable.

     4.20. Labor Matters. As of the date hereof and the Closing Date, there are no strikes,
lockouts or slowdowns against Borrower or any of its subsidiaries pending or, to the knowledge of
Borrower, threatened. The hours worked by and payments made to employees of Borrower and its
subsidiaries have not been in violation of the Fair Labor Standards Act of 1938 or any other
applicable federal, state, local or foreign law dealing with such matters, except where such
violation, either individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect. All payments due from Borrower or any of its subsidiaries, or for which
any claim may be made against Borrower or any of its subsidiaries, on account of wages and employee
health and welfare insurance and other benefits, have been paid or accrued as a

29

 

liability on the books of Borrower or such subsidiary, except where such violation, either
individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect. The consummation of the Transactions will not give rise to any right of termination or
right of renegotiation on the part of any union under any collective bargaining agreement to which
Borrower or any of its subsidiaries is bound.

     4.21. Solvency. Immediately before and after the consummation of the Transactions to occur on
the Closing Date, (a) the fair value of the assets of Borrower and each of its subsidiaries will
exceed its debts and liabilities, subordinated, contingent or otherwise; (b) the present fair
saleable value of the property of Borrower and each of its subsidiaries will be greater than the
amount that will be required to pay the probable liability of its debts and other liabilities,
subordinated, contingent or otherwise, as such debts and other liabilities become absolute and
matured; (c) Borrower and each of its subsidiaries will be able to pay its debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured;
and (d) Borrower and each of its subsidiaries will not have unreasonably small capital with which
to conduct the business in which it is engaged as such business is now conducted and is proposed to
be conducted.

     4.22. Senior Indebtedness. Obligations of Borrower hereunder constitute senior indebtedness
(however denominated) in respect of any subordinated Indebtedness of Borrower.

     4.23. Sanctioned Persons. None of Borrower or its subsidiaries or, to the knowledge of
Borrower or its subsidiaries, any director, officer, agent, employee or Affiliate of Borrower or
any of its subsidiaries is currently subject to any U.S. sanctions administered by the Office of
Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

     4.24. Intellectual Property. Borrower and each of its subsidiaries owns or has the lawful
right to use all Intellectual Property necessary for the conduct of its business, without conflict
with any rights of others. There is no pending or, to Borrower’s knowledge, threatened
Intellectual Property Claim with respect to Borrower, any of its subsidiaries or any of their
property (including any Intellectual Property) that has had or could reasonably be expected to have
a Material Adverse Effect.

     4.25. First Purchaser Liens. None of the Petroleum Product owned or purchased by Borrower is
subject to a First Purchaser Lien except as Borrower may have previously notified Issuing Bank.

     4.26. PATRIOT Act. To the extent applicable, Borrower and its subsidiaries is in compliance,
in all material respects, with (i) the Trading with the Enemy Act, as amended, and each of the
foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B,
Chapter V, as amended) and any other enabling legislation or executive order relating thereto, and
(ii) the PATRIOT Act. No part of the proceeds of the Letter of Credit will be used, directly or
indirectly, for any payments to any governmental official or employee, political party, official of
a political party, candidate for political office, or anyone else acting in an official capacity,
in order to obtain, retain or direct business or obtain any improper advantage, in violation of the
United States Foreign Corrupt Practices Act of 1977, as amended.

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     SECTION 5. AFFIRMATIVE COVENANTS

     Borrower covenants and agrees with Issuing Bank that on the Closing Date and so long as this
Agreement shall remain in effect and until the Letter of Credit shall have been fully drawn or
expired or otherwise terminated and all drawings thereunder and other amounts payable under any
Credit Document shall have been paid in full, Borrower will, and will cause each of its
subsidiaries to:

     5.1. Existence; Businesses and Properties. (a) Do or cause to be done all things necessary to
preserve, renew and keep in full force and effect its legal existence.

     (b) Do or cause to be done all things necessary to obtain, preserve, renew, extend and keep in
full force and effect the rights, licenses, permits, franchises, authorizations, patents,
copyrights, trademarks and trade names material to the conduct of its business, except where the
failure to do so could not reasonably be expected to have a Material Adverse Effect; maintain and
operate such business in substantially the manner in which it is presently conducted and operated;
comply in all material respects with all applicable laws, rules, regulations and decrees and orders
of any Governmental Authority, whether now in effect or hereafter enacted, except where the failure
to do so could not reasonably be expected to have a Material Adverse Effect; and at all times
maintain and preserve all property material to the conduct of such business and keep such property
in good repair, working order and condition and from time to time make, or cause to be made, all
needful and proper repairs, renewals, additions, improvements and replacements thereto necessary in
order that the business carried on in connection therewith may be properly conducted at all times,
except where the failure to do so could not reasonably be expected to have a Material Adverse
Effect.

     5.2. Insurance. (a) Keep its insurable properties adequately insured at all times by insurers
reasonably acceptable to Issuing Bank and in amounts and limits of deductibles (if Issuing Bank so
permits) reasonably acceptable to Issuing Bank and forms reasonably acceptable to Issuing Bank;
maintain such other insurance, to such extent and against such risks, including fire and other
risks insured against by extended coverage, as is customary with companies in the same or similar
businesses operating in the same or similar locations, including public liability insurance against
claims for personal injury or death or property damage occurring upon, in, about or in connection
with the use of any properties owned, occupied or controlled by it; and maintain such other
insurance as may be required by law; provided, however, that in no event shall
Borrower’s insurance for property and business interruption be for less than a combined single
limit of $100,000,000. Notwithstanding anything herein to the contrary, compliance by Borrower
with Article 15 of the Supply and Offtake Agreement shall constitute compliance with this Section
5.2(a).

     (b) Subject to the rights of the Trustee (as defined in the Indenture) and/or the Note
Collateral Agent under the Indenture Documents (as defined in the Indenture), cause all such
policies covering any Collateral to be endorsed or otherwise amended to include a customary
lender’s loss payable/additional insured endorsements, in form and substance reasonably
satisfactory to Issuing Bank, which endorsement shall provide that, from and after the Closing
Date, if the insurance carrier shall have received written notice from Issuing Bank of the
occurrence of an Event of Default, the insurance carrier shall pay all proceeds otherwise payable

31

 

to Borrower or its subsidiaries under such policies directly to Issuing Bank; cause any
distribution payable under any such policy that is not so endorsed to be payable for the joint
account of Borrower and Issuing Bank (and not payable individually to Borrower) and promptly take
all steps necessary to cause such distribution to be payable for the sole account of Issuing Bank;
cause all such policies to provide that none of Borrower, Issuing Bank or any other party shall be
a coinsurer thereunder and to contain a “Replacement Cost Endorsement”, without any deduction for
depreciation, and such other provisions as Issuing Bank may reasonably require from time to time to
protect its interests; deliver certificates of insurance evidencing the insurance required herein
to Issuing Bank; and cause each such policy to provide that it shall not be canceled, modified or
not renewed upon less than 30 days’ prior written notice thereof by the insurer to Borrower and
Issuing Bank (which notice Borrower hereby agrees to deliver to Issuing Bank within one Business
Day of receipt); and deliver to Issuing Bank, ten Business Days prior to the cancellation,
modification or nonrenewal of any such policy of insurance, a copy of a renewal or replacement
policy (or other evidence of renewal reasonably satisfactory to Issuing Bank) together with
evidence satisfactory to Issuing Bank of payment of the premium therefor.

     5.3. Obligations and Taxes. Pay its Indebtedness and other obligations promptly and in
accordance with their terms and pay and discharge promptly when due all Taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits or in respect of its
property, before the same shall become delinquent or in default, as well as all lawful claims for
labor, materials and supplies or otherwise that, if unpaid, might give rise to a Lien upon such
properties or any part thereof that would otherwise not be permitted by Section 6.2;
provided, however, that such payment and discharge shall not be required with
respect to any such Tax, assessment, charge, levy or claim so long as the validity or amount
thereof shall be contested in good faith by appropriate proceedings and Borrower shall have set
aside on its books adequate reserves with respect thereto in accordance with GAAP and such contest
operates to suspend collection of the contested obligation, Tax, assessment or charge and
enforcement of a Lien.

     5.4. Financial Statements, Reports, etc. Furnish to Issuing Bank:

     (a) within 45 days after the end of each Fiscal Quarter (or, if such Fiscal Quarter end is
also the end of Borrower’s Fiscal Year, 90 days after the end of such Fiscal Year), Borrower’s
consolidated and consolidating balance sheet and related consolidated and consolidating statements
of income and cash flows, showing the financial condition of Borrower and its consolidated
subsidiaries as of the close of such Fiscal Quarter and the results of their operations and cash
flows for such Fiscal Quarter and the then elapsed portion of the Fiscal Year with comparative
figures for the same periods in the immediately preceding Fiscal Year, all certified by a Financial
Officer of Borrower as fairly presenting the financial condition and results of operations and cash
flows of Borrower and its consolidated subsidiaries on a consolidated and consolidating basis in
accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the
absence of certain footnotes provided, however, that such obligation shall be
satisfied if Borrower timely files with the SEC all quarterly and annual reports that Borrower is
required to file with the SEC on Forms 10-Q and 10-K, provided, further, that the
availability of the foregoing materials on the SEC’s EDGAR service (or its successor) will be
deemed to satisfy Borrower’s delivery obligation;

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     (b) concurrently with any delivery, or deemed delivery, of financial statements under
paragraph (a) above, a certificate of a Responsible Officer certifying that no Event of Default or
Default has occurred or, if such an Event of Default or Default has occurred, specifying the nature
and extent thereof and any corrective action taken or proposed to be taken with respect thereto;

     (c) promptly, following a request by Issuing Bank, all documentation and other information
that Issuing Bank reasonably requests in order to comply with its ongoing obligations under
applicable “know your customer” and anti-money laundering rules and regulations, including the
Patriot Act; and

     (d) promptly, from time to time, such other information regarding the operations, business
affairs and financial condition of Borrower or any of its subsidiaries, or compliance with the
terms of any Credit Document, as Issuing Bank may reasonably request.

     5.5. Litigation and Other Notices. Furnish to Issuing Bank written notice within five
Business Days of the following:

     (a) any Event of Default or Default, specifying the nature and extent thereof and the
corrective action (if any) taken or proposed to be taken with respect thereto;

     (b) the filing or commencement of, or any threat or notice of intention of any person to file
or commence, any action, suit or proceeding, whether at law or in equity or by or before any
Governmental Authority, against Borrower or any Affiliate thereof that could reasonably be expected
to result in a Material Adverse Effect;

     (c) [Reserved.]

     (d) any purchase of Petroleum Product from a person who may be the beneficiary of a First
Purchaser Lien or may belong to the class of persons intended to be protected by a statute or other
law providing for a First Purchaser Lien, at least five Business Days before the initial purchase
from such person; or

     (e) any other development that has resulted in, or could reasonably be expected to result in,
a Material Adverse Effect,

     provided, however, that if Borrower files with the SEC any notice or other
filing relating to any of the matters referenced in paragraph (a) above, Borrower shall, by 5:30
p.m. New York City time on the day of filing, furnish to Issuing Bank a copy of such filing.

     5.6. Maintaining Records; Access to Properties and Inspections. Keep proper books of record
and account in which full, true and correct entries in conformity with GAAP and all requirements of
law are made of all dealings and transactions in relation to its business and activities. Borrower
will, and will cause each of its subsidiaries to, permit any representatives designated by Issuing
Bank to visit and inspect the financial records and the properties of Borrower or any of its
subsidiaries during regular business hours upon reasonable prior notice and as often as reasonably
requested and to make extracts from and copies of such financial records, and permit any
representatives designated by Issuing Bank to discuss the affairs,

33

 

finances and condition of Borrower or any of its subsidiaries with the officers thereof and
independent accountants therefor.

     5.7. ERISA. Furnish to Issuing Bank, promptly and in any event within ten Business Days after
receipt thereof by Borrower or any ERISA Affiliate of Borrower, (i) copies of each written
statement or each notice received by Borrower or its ERISA Affiliate describing an ERISA Event and
the action, if any, that Borrower or such ERISA Affiliate has taken and proposes to take with
respect thereto, and (ii) copies of each notice from the PBGC stating its intention to terminate
any Pension Plan or to have a trustee appointed to administer any such Pension Plan. In addition,
in the event that Borrower receives no such written statement or notice, the Borrower shall
nevertheless notify Issuing Bank promptly and in any event within ten Business Days after becoming
aware of any ERISA Event.

     5.8. Senior Indebtedness Designation. In the event that Borrower or any of its subsidiaries
shall at any time issue or have outstanding any Indebtedness that by its terms is subordinated to
any other Indebtedness of Borrower or such subsidiary, take all actions necessary to cause the
obligations of Borrower hereunder to constitute senior indebtedness (however denominated) in
respect of such subordinated Indebtedness and to enable Issuing Bank to exercise any payment
blockage or other remedies available or potentially available to lenders of senior indebtedness
under the terms of such subordinated Indebtedness. Without limiting the foregoing, the obligations
of Borrower hereunder are hereby designated as “senior indebtedness” and, to the extent applicable,
as “designated senior indebtedness” in respect of all such subordinated Indebtedness and are
further given all such other designations as shall be required under the terms of any such
subordinated Indebtedness in order that Issuing Bank may exercise any payment blockage or other
remedies available or potentially available to lenders of senior indebtedness under the terms of
such subordinated Indebtedness.

     5.9. Collateral. (a) Execute any and all further documents, financing statements, agreements
and instruments, and take all such further actions (including the filing and recording of financing
statements and fixture filings and other documents), which may be required under any applicable
law, or which Issuing Bank may reasonably request, all at the expense of Borrower and its
subsidiaries. Borrower also agrees to provide to Issuing Bank, from time to time upon request,
evidence reasonably satisfactory to Issuing Bank as to the perfection and priority of the Liens
created or intended to be created by the Collateral Documents.

     (b) Furnish to Issuing Bank prior written notice of any change (i) in the corporate name of
Borrower or any of its subsidiaries, (ii) in the identity or corporate structure or jurisdiction of
formation of Borrower or any of its subsidiaries and (iii) in the Federal Taxpayer Identification
Number of Borrower or any subsidiaries. Borrower agrees not to effect or permit any change referred
to in the preceding sentence unless all filings have been made (or are simultaneously made) under
the UCC or otherwise that are required in order for Issuing Bank to continue at all times following
such change to have, and Borrower agrees to take all necessary action to ensure that Issuing Bank
does continue at all times to have, a valid, legal and perfected security interest in all the
Collateral. Borrower also agrees to notify Issuing Bank, within five Business Days of such
occurrence, if any material portion of the Collateral is damaged or destroyed.

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     (c) In the case of Borrower, upon request of Issuing Bank, deliver to Issuing Bank a
certificate of a Responsible Officer setting forth the information required pursuant to the
Perfection Certificate or confirming that there has been no change in such information since the
date of the Perfection Certificate delivered on the Closing Date or the date of the most recent
certificate delivered pursuant to this Section.

     (d) Issuing Bank may request, at Borrower’s expense, a market value appraisal, in form and
substance reasonably satisfactory to Issuing Bank, of the Collateral, with such appraisal conducted
by an appraiser selected by Borrower and reasonably satisfactory to Issuing Bank (i) after the
occurrence, and during the continuance of a Default or Event of Default or (ii) if Issuing Bank
provides a certificate to Borrower to the effect that it has reasonable grounds to believe that (x)
there has been a material reduction in the value of the Collateral or (y) any appraisal conducted
with respect to the Collateral was inaccurate in any material respect.

     (e) Furnish to Issuing Bank by the 15th day of each calendar month as of the end of
the prior calendar month a Collateral Certificate.

     5.10. [Reserved.]

     5.11. [Reserved.]

     5.12. Additional Subsidiaries. If any subsidiary of Borrower (other than any Inactive
Subsidiary or a subsidiary of Borrower that is a CFC) is formed or acquired after the Closing Date
or if any such subsidiary that was previously an Inactive Subsidiary ceases to qualify as an
Inactive Subsidiary, Borrower will, as promptly as practicable and in any event within 30 days (or
such longer period as Issuing Bank may agree to in writing) after such event, notify Issuing Bank
thereof and cause such subsidiary to guarantee the Obligations of Borrower hereunder and execute
and delivery such Credit Documents and other documents as Issuing Bank may reasonably request, and
take such other actions as Issuing Bank shall require to evidence and perfect a Lien in favor of
Issuing Bank (for the benefit of Secured Parties) on all assets of such subsidiary and any Equity
Interests issued by such subsidiary consistent with the terms of this Agreement, including delivery
of such Deposit Account Control Agreements and legal opinions as it shall deem appropriate, all in
form and substance acceptable to Issuing Bank.

     5.13. Compliance with Law; Maintenance of Licenses. Borrower shall comply, and shall cause
each of its subsidiaries to comply, in all material respects, with all applicable laws (including
the Federal Fair Labor Standards Act, all Environmental Laws, and, to the extent applicable to
Borrower or its subsidiaries, the Sarbanes-Oxley Act). Borrower shall, and shall cause each of its
subsidiaries to, obtain and maintain all material licenses, permits, franchises, and governmental
authorizations necessary to own its property and to conduct its business as conducted on the
Closing Date.

     SECTION 6. NEGATIVE COVENANTS

          Borrower covenants and agrees with Issuing Bank that on the Closing Date and as long as this
Agreement shall remain in effect and until the Letter of Credit shall have been fully drawn or
expired or otherwise terminated and all drawings thereunder and other amounts payable

35

 

under any Credit Document shall have been paid in full, Borrower shall perform, and shall
cause each of its subsidiaries to perform, all covenants in this Section 6.

     6.1. Limitation on Indebtedness. Neither Borrower nor any of its subsidiaries will create,
incur, assume or permit to exist, directly or indirectly, any Indebtedness, except the following:

     (a) Indebtedness created under the Credit Documents; and

     (b) Indebtedness created under or expressly permitted to be incurred pursuant to the Indenture
and not prohibited by the Intercreditor Agreement, or Refinancing Indebtedness in respect of any of
the foregoing.

     6.2. Liens. Neither Borrower nor any of its subsidiaries will create, incur, assume or permit
to exist any Lien on any asset now owned or leased or hereafter acquired or leased by it, or assign
or sell any income or revenues (including accounts receivable) or rights in respect of any thereof,
except the following (collectively, “Permitted Liens”):

     (a) Liens created under the Credit Documents; and

     (b) Permitted Liens, as that term is defined in the Indenture.

     6.3. ERISA. Neither the Borrower nor any ERISA Affiliate shall fail to satisfy the rules
regarding minimum required contributions under Sections 412, 430, 431, 432 and 436 of the Code or
Sections 302, 303, 304 and 305 of ERISA (the “ERISA Minimum Funding Rules”) or otherwise incur or
permit an ERISA Event to exist, except to any extent such ERISA Event or failure to meet the ERISA
Minimum Funding Rules would not result in a Material Adverse Effect.

     6.4. [Reserved.]

     6.5. Mergers, Consolidations and Other Fundamental Changes. Neither Borrower nor any of its
subsidiaries will merge into or consolidate with any other person, or permit any other person to
merge into or consolidate with it, or liquidate or dissolve, except if, at the time thereof and
immediately after giving effect thereto, no Default or Event of Default shall have occurred and be
continuing, and such merger, consolidation, liquidation or dissolution is not prohibited by the
Indenture.

     6.6. Asset Sales. Neither Borrower nor any of its subsidiaries will sell, transfer, lease or
otherwise dispose of (it being understood that a casualty to, or a condemnation of, any asset shall
not be deemed to be a disposition thereof) any asset, except:

     (a) any sale, lease, conveyance or other disposition of products, services or inventory, in
the ordinary course of business and any sale, conveyance or other disposition of damaged, worn-out
or obsolete assets in the ordinary course of business; and

     (b) sales, transfers, leases and other dispositions not prohibited pursuant to the terms of
the Indenture.

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     6.7. Restricted Payments.

     (a) Borrower will not, and will not permit any of its subsidiaries (other than Inactive
Subsidiaries) to, directly or indirectly:

          (1) declare or pay any dividend or make any other payment or distribution on account of
Borrower’s or any such subsidiaries’ Equity Interests (including any payment in connection with any
merger or consolidation involving Borrower or any of its subsidiaries) or to the direct or indirect
holders of Borrower’s or any such subsidiaries’ Equity Interests solely in their capacity as such
(other than dividends or distributions payable in Equity Interests (other than Disqualified Stock)
of Borrower and other than dividends, payments or distributions payable to Borrower or a subsidiary
of Borrower);

          (2) purchase, redeem or otherwise acquire or retire for value (including, without limitation,
in connection with any merger or consolidation involving Borrower) any Equity Interests of Borrower
or any direct or indirect parent of Borrower; or

          (3) make any payment on or with respect to, or purchase, redeem, defease or otherwise acquire
or retire for value any Indebtedness of Borrower or any of its subsidiaries that is contractually
subordinated in right of payment to the Obligations of Borrower incurred under this Agreement
(excluding any intercompany Indebtedness between or among Borrower and any of its subsidiaries),
except payments of interest or principal at the stated maturity thereof and payments of principal
in anticipation of satisfying a sinking fund obligation or final maturity, in each case within one
year of the due date thereof;

     (all such declarations, payments, distributions, purchases, redemptions, acquisitions,
retirements and defeasances set forth in these clauses (1) through (3) above being collectively
referred to as “Restricted Payments”), unless, at the time of and after giving effect to such
Restricted Payment no Default or Event of Default has occurred and is continuing or would occur as
a consequence of such Restricted Payment.

     (b) The provisions of Section 6.7(a) above shall not prohibit Borrower or any of its
subsidiaries from making Restricted Payments that are permitted under Section 4.07(b) of the
Indenture.

     (c) Borrower shall not make any Excess Cash Flow Offer (as defined in Section 4.16(a) of the
Indenture) under the Indenture if at the time Borrower would be required to make such Excess Cash
Flow Offer under the Indenture (i) an RCF Availability Deficit (as defined in the Indenture) shall
have occurred as of the last day of the month most recently ended prior to such time or would
result therefrom or (ii) an RCF Event of Default (as defined in the Indenture) shall have occurred
and be continuing.

     6.8. Transactions with Affiliates.

     (a) Neither Borrower nor any of its subsidiaries will sell, lease, license or otherwise
transfer any assets to, or purchase, lease, license or otherwise acquire any assets from, or
otherwise engage in any other transactions with, any of its Affiliates (including Parent), except
the following:

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     (i) transactions in the ordinary course of business that are at prices and on terms and
conditions not materially less favorable to Borrower or such subsidiary than those that
would have been obtained in a comparable transaction by Borrower or its subsidiaries with an
unrelated person;

     (ii) transactions between or among Borrower and its subsidiaries not involving any
other Affiliate (including any person that becomes a subsidiary in connection with such
transaction);

     (iii) any Restricted Payment that does not violate the provisions of Section 6.7;

     (iv) compensation and indemnification of, and other employment arrangements with,
directors, officers and employees of Borrower or any of its subsidiaries entered in the
ordinary course of business;

     (v) Investments not prohibited under this Agreement;

         (vi) [Reserved.]

     (vii) any employment, secondment or consulting agreement, employee benefit plan, stock
option, stock repurchase, severance, officer or director indemnification agreement or any
similar arrangement entered into by Borrower or any of its subsidiaries in the ordinary
course of business;

     (viii) transactions with a person that is an Affiliate of Borrower solely because
Borrower owns, directly or through a subsidiary, an Equity Interest in, or controls, such
person;

     (ix) payment of reasonable and customary fees and reimbursements of expenses to, and
the provision of indemnities (pursuant to indemnity arrangements or otherwise) to, officers,
directors or employees of Borrower or any of its subsidiaries;

     (x) any issuance of Equity Interests (other than Disqualified Stock) of Borrower or
contribution to the common equity capital of Borrower;

     (xi) loans or advances to employees in the ordinary course of business not to exceed
$750,000 in the aggregate at any one time outstanding;

     (xii) any Permitted Parent Payments;

     (xiii) reimbursements of costs and expenses (such as payroll) incurred by Parent or its
subsidiaries on behalf of Borrower or its subsidiaries;

     (xiv) the incurrence of Indebtedness owing to an Affiliate not prohibited hereby;

     (xv) transactions pursuant to any contract, agreement or arrangement described in the
Offering Memorandum, as defined in the Indenture, under the caption “Certain Relationships
and Related Party Transactions” and in effect on the Issue Date, as defined

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in the Indenture, as the same may be amended, modified or replaced from time to time so
long as any such amendment, modification or replacement is not, in Borrower’s good faith
judgment, materially more disadvantageous to Borrower or its subsidiaries than the contract,
agreement or arrangement as in effect on the Issue Date.

     (b) Neither Borrower nor any of its subsidiaries will permit Parent or any of its Affiliates
(other than Holdings and its subsidiaries) to own or hold any material asset or Governmental
Approval that is necessary for the ownership of the Krotz Springs Refinery and the operation
thereof substantially in the manner as conducted on the Closing Date.

     6.9. Permitted Business. Neither Borrower nor any of its subsidiaries will engage at any time
in any business or activity other than the ownership and operation of a Permitted Business and
activities directly related or incidental thereto.

     6.10. Restrictive Agreements. Neither Borrower nor any of its subsidiaries will, directly or
indirectly, enter into, incur or permit to exist any agreement or other arrangement that prohibits,
restricts or imposes any condition on (a) the ability of Borrower or any of its subsidiaries to
create, incur or permit to exist any Lien on any of its assets to secure any Obligations incurred
under the Credit Documents or (b) the ability of any subsidiary of Borrower to pay dividends or
other distributions with respect to its Equity Interests or to make or repay loans or advances to
Borrower or any other Domestic Subsidiary or the ability of Borrower or any Domestic Subsidiary to
guarantee the Obligations incurred under the Credit Documents; provided, that (1) the
foregoing shall not apply to (A) restrictions and conditions imposed by law or by any Credit
Document and (B) restrictions and conditions imposed by the Note Documents, as such restrictions
and conditions are in effect on the Closing Date, or by the Intercreditor Agreement, and (2) clause
(a) of the foregoing shall not apply to (A) restrictions or conditions imposed by any agreement
relating to secured Indebtedness permitted by this Agreement (other than the Permitted Note
Facility) if such restrictions or conditions apply only to the assets securing such Indebtedness or
(B) customary provisions in leases and other agreements restricting the assignment thereof.

     6.11. Amendment of Material Documents. Neither Borrower nor any of its subsidiaries will
amend, restate, supplement or otherwise modify any Note Document or any other definitive
documentation for the Permitted Note Facility, the Stock Purchase Agreement or the Supply and
Offtake Agreement, to the extent any of the foregoing could reasonably be expected to materially
impair (a) the rights of or benefits available to Issuing Bank under any Credit Document in respect
of any payment obligation of the Borrower thereunder or (b) the ability of the Borrower to perform
any of its material obligations under any Credit Document.

     6.12. Hedging Agreements. Neither Borrower nor any of its subsidiaries will enter into any
Hedging Agreement except (A) the Crack Spread Hedging Agreements and (B) any other Hedging
Agreements that are not enter into for speculative purposes.

     6.13. Parent Credit Agreement. Notwithstanding anything to the contrary set forth herein,
including in Sections 6.1 and 6.4, neither Borrower nor any of its subsidiaries will become a party
to, or otherwise create, incur, assume or permit to exist any Indebtedness

39

 

(whether as a principal obligor or a guarantor) of Borrower or any of its subsidiaries under
the Existing Parent Term Credit Agreement or the Existing Parent Revolving Credit Agreement.

     SECTION 7. [RESERVED]

     SECTION 8. EVENTS OF DEFAULT

     In case of the happening of any of the following events (“Events of Default”):

     (a) any representation or warranty made or deemed made in or in connection with any Credit
Document or the Letter of Credit, or any representation, warranty, statement or information
contained in any report, certificate, financial statement or other instrument furnished in
connection with or pursuant to any Credit Document, shall prove to have been false or misleading in
any material respect when so made, deemed made or furnished;

     (b) default shall be made in the payment of any amount due hereunder in respect of a drawing
under the Letter of Credit, when and as the same shall become due and payable, whether at the due
date thereof or otherwise;

     (c) default shall be made in the payment of any other amount (other than an amount referred to
in paragraph (b) above) due under any Credit Document, when and as the same shall become due and
payable, and such default shall continue unremedied for a period of three Business Days;

     (d) default shall be made in the due observance or performance by Borrower of any covenant,
condition or agreement contained in Section 5.1(a), 5.2(a), 5.5(a) or 5.7 or in Section 6 and such
default shall continue unremedied for a period of 10 Business Days after notice thereof from
Issuing Bank to Borrower;

     (e) default shall be made in the due observance or performance by Borrower of any covenant,
condition or agreement contained in any Credit Document (other than those specified in paragraphs
(b), (c) or (d) above) and such default shall continue unremedied for a period of 30 days after
notice thereof from Issuing Bank to Borrower;

     (f) (i) Borrower or any of its subsidiaries shall fail to pay any principal or interest,
regardless of amount, due in respect of any Material Indebtedness, when and as the same shall
become due and payable, and such failure shall not be waived and shall continue after any
applicable grace period therefor, or (ii) any other event or condition shall occur that results in
any Material Indebtedness of Borrower or any of its subsidiaries becoming due prior to its
scheduled maturity or that would enable or permit (with or without the giving of notice, the lapse
of time or both) the holder or lenders of any such Material Indebtedness or any trustee or agent on
its or their behalf to cause any such Material Indebtedness to become due, or to require the
prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity, and such
event or condition shall not be waived and shall continue after any applicable grace period
therefor; provided that this clause (ii) shall not apply to secured Indebtedness that
becomes due as a result of the voluntary sale or transfer of the property or assets securing such
Indebtedness;

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     (g) any person shall make any demand for payment or otherwise seek to exercise or enforce its
rights under any Guarantee (and the amount so demanded or sought constitutes Material Indebtedness)
by Borrower or any of its subsidiaries of any Material Indebtedness of Borrower or any of its
subsidiaries;

     (h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed in
a court of competent jurisdiction seeking (i) relief in respect of Borrower or any of its
subsidiaries, or of a substantial part of the property or assets of Borrower or any of its
subsidiaries, under Title 11 of the Bankruptcy Code, as now constituted or hereafter amended, or
any other federal, state or foreign bankruptcy, insolvency, receivership or similar law, (ii) the
appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for
Borrower or any of its subsidiaries or for a substantial part of the property or assets of Borrower
or any of its subsidiaries or (iii) the winding-up, liquidation or dissolution of Borrower or any
of its subsidiaries and such proceeding or petition shall continue undismissed for 15 days or an
order or decree approving or ordering any of the foregoing shall be entered;

     (i) Borrower or any of its subsidiaries shall (i) voluntarily commence any proceeding or file
any petition seeking relief under Title 11 of the Bankruptcy Code, as now constituted or hereafter
amended, or any other federal, state or foreign bankruptcy, insolvency, receivership or similar
law, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any
proceeding or the filing of any petition described in paragraph (h) above, (iii) apply for or
consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar
official for Borrower or any of its subsidiaries or for a substantial part of the property or
assets of Borrower, (iv) file an answer admitting the material allegations of a petition filed
against it in any such proceeding, (v) make a general assignment for the benefit of creditors, (vi)
become unable, admit in writing its inability or fail generally to pay its debts as they become due
or (vii) take any action for the purpose of effecting any of the foregoing;

     (j) one or more judgments for the payment of money in an aggregate amount in excess of
$15,000,000 (net of all amounts as to which any insurance company or other indemnifying party
(other than Borrower or an Affiliate of Borrower) has acknowledged liability) shall be rendered
against any or all of Borrower or any of its subsidiaries and the same shall remain undischarged
for a period of 60 consecutive days during which execution shall not be effectively stayed, or any
action shall be legally taken by a judgment creditor to levy upon assets or properties of Borrower
or any of its subsidiaries to enforce any such judgment;

     (k) [Reserved];

     (l) any “Event of Default” shall occur under the Supply and Offtake Agreement;

     (m) any security interest purported to be created by any Collateral Document shall cease to
be, or shall be asserted by Borrower or any of its subsidiaries not to be, a valid, perfected,
first priority (except as otherwise expressly provided in this Agreement, such Collateral Document
or the Intercreditor Agreement) security interest in any portion of the securities, assets or
properties covered thereby having a fair market value in excess of $5,000,000, except to the extent
that any such loss of perfection or priority results from the

41

 

failure of Issuing Bank to maintain possession of certificates representing securities pledged
under the any Collateral Document;

     (n) Borrower or any of its subsidiaries or any of their senior officers is criminally indicted
or convicted for (A) a felony committed in the conduct of such party’s business, or (B) violating
any state or federal law (including the Controlled Substances Act, Money Laundering Control Act of
1986 and Illegal Exportation of War Materials Act) that could lead to forfeiture of any material
property or any Collateral;

     (o) the Intercreditor Agreement for any reason shall cease to be, or shall be asserted in
writing by Holdings or any of its subsidiaries not to be, binding on or enforceable against any
party thereto (or on or against any person on whose behalf the Note Collateral Agent or any Crack
Spread Hedging Secured Party (following it becoming a party thereto) makes any covenant or
agreement therein), other than in accordance with its terms;

     (p) there shall have occurred any event or condition adversely affects the ability of Borrower
to access any ExxonMobil Pipeline for the purpose of obtaining delivery of crude oil to the Krotz
Springs Refinery in each case that, in the opinion of Issuing Bank (taking into consideration the
alternative arrangements available to Borrowers and the Subsidiaries with respect to delivery of
crude oil to and transportation of refined products from the Krotz Springs Refinery), could
reasonably be expected to result in a Material Adverse Effect; or

     (q) a Change of Control occurs;

then, and in every such event (other than an event with respect to Borrower described in paragraph
(h) or (i) above), and at any time thereafter during the continuance of such event, Issuing Bank
may, by notice to Borrower, take either or both of the following actions, at the same or different
times: (i) terminate the Commitment and (ii) demand cash collateral in an amount equal to the
undrawn face amount of the Letter of Credit (as contemplated in Section 2.4) and demand payment of
any other amounts from Borrower accrued hereunder and under any other Credit Document and such
amounts, shall become forthwith due and payable, without presentment, demand, protest or any other
notice of any kind, all of which are hereby expressly waived by Borrower, anything contained herein
or in any other Credit Document to the contrary notwithstanding; and in any event with respect to
Borrower described in paragraph (h) or (i) above, the Commitment shall automatically terminate and
all other liabilities of Borrower accrued hereunder and under any other Credit Document shall
automatically become due and payable, without presentment, demand, protest or any other notice of
any kind, all of which are hereby expressly waived by Borrower, anything contained herein or in any
other Credit Document to the contrary notwithstanding.

     SECTION 9.MISCELLANEOUS

     9.1. Notices.

     (a) Notices Generally. Any notice or other communication herein required or permitted
to be given to Borrower or Issuing Bank shall be sent to such Person’s address as set forth on
Appendix A or in any other relevant Credit Document or otherwise indicated to the other party
hereto in writing. Except as otherwise set forth in paragraph (b) below, each notice

42

 

hereunder shall be in writing and may be personally served or sent by telefacsimile or United
States mail or courier service and shall be deemed to have been given when delivered in person or
by courier service and signed for against receipt thereof, upon receipt of telefacsimile, or three
Business Days after depositing it in the United States mail with postage prepaid and properly
addressed; provided, no notice to Issuing Bank shall be effective until received by Issuing
Bank.

     (b) Electronic Communications.

     (i) Notices and other communications to Issuing Bank hereunder may be delivered or
furnished by electronic communication (including e-mail and Internet or intranet websites)
pursuant to procedures approved by Issuing Bank, provided that the foregoing shall
not apply to notices to Issuing Bank pursuant to Section 2 if Issuing Bank has notified
Borrower that it is incapable of receiving notices under such Section by electronic
communication. 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. Unless Issuing Bank otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the sender’s receipt
of an acknowledgement from the intended recipient (such as by the “return receipt requested”
function, as available, return e-mail or other written acknowledgement), provided
that if such notice or other communication is not sent during the normal business hours of
the recipient, such notice or communication shall be deemed to have been sent at the opening
of business on the next Business Day for the recipient, and (ii) notices or communications
posted to an Internet or intranet website shall be deemed received upon the deemed receipt
by the intended recipient at its e-mail address as described in the foregoing clause (i) of
notification that such notice or communication is available and identifying the website
address therefor.

     (ii) Borrower understands that the distribution of material through an electronic
medium is not necessarily secure and that there are confidentiality and other risks
associated with such distribution and agrees and assumes the risks associated with such
electronic distribution, except to the extent caused by the willful misconduct or gross
negligence of Issuing Bank, as determined by a final, non-appealable judgment of a court of
competent jurisdiction.

     (iii) Any Approved Electronic Communications are provided “as is” and “as available”.
None of Issuing Bank nor any of its officers, directors, employees, agents, advisors or
representatives (the “Issuing Bank Affiliates”) warrant the accuracy, adequacy, or
completeness of the Approved Electronic Communications and each expressly disclaims
liability for errors or omissions in the Approved Electronic Communications. No warranty of
any kind, express, implied or statutory, including any warranty of merchantability, fitness
for a particular purpose, non-infringement of third party rights or freedom from viruses or
other code defects is made by Issuing Bank Affiliates in connection with the Approved
Electronic Communications.

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     (iv) Borrower and Issuing Bank agree that Issuing Bank may, but shall not be obligated
to, store any Approved Electronic Communications in accordance with Issuing Bank’s customary
document retention procedures and policies.

     (v) Any notice of Default or Event of Default may be provided by telephone if confirmed
promptly thereafter by delivery of written notice thereof.

     9.2. Expenses. Whether or not the transactions contemplated hereby shall be consummated,
Borrower agrees to pay promptly (a) all the actual and reasonable costs and expenses incurred in
connection with the negotiation, preparation and execution of the Credit Documents and any
consents, amendments, waivers or other modifications thereto; (b) all the costs of furnishing all
opinions by counsel for Borrower; (c) the reasonable fees, expenses and disbursements of outside
counsel to Issuing Bank in connection with the negotiation, preparation, execution and
administration of the Credit Documents and any consents, amendments, waivers or other modifications
thereto and any other documents or matters requested by Borrower; (d) all the actual costs and
reasonable expenses of creating, perfecting, recording, maintaining and preserving Liens in favor
of Issuing Bank, including filing and recording fees, expenses and taxes, stamp or documentary
taxes, search fees, title insurance premiums and reasonable fees, expenses and disbursements of
counsel to Issuing Bank and of counsel providing any opinions that Issuing Bank may request in
respect of the Collateral or the Liens created pursuant to the Collateral Documents; (e) all the
actual costs and reasonable fees, expenses and disbursements of any auditors, accountants,
consultants or appraisers; (f) all the actual costs and reasonable expenses (including the
reasonable fees, expenses and disbursements of any appraisers, consultants, advisors and agents
employed or retained by Issuing Bank and its outside counsel) in connection with the custody or
preservation of any of the Collateral; (g) all other actual and reasonable costs and expenses
incurred by Issuing Bank in connection with the transactions contemplated by the Credit Documents
and any consents, amendments, waivers or other modifications thereto and (h) after the occurrence
of a Default or an Event of Default, all costs and expenses, including reasonable attorneys’ fees
of internal and outside counsel and costs of settlement, incurred by Issuing Bank in enforcing any
Obligations of or in collecting any payments due from Borrower hereunder or under the other Credit
Documents by reason of such Default or Event of Default (including in connection with the sale,
lease or license of, collection from, or other realization upon any of the Collateral) or in
connection with any refinancing or restructuring of the credit arrangements provided hereunder in
the nature of a “work-out” or pursuant to any insolvency or bankruptcy cases or proceedings.

     9.3. Indemnity.

     (a) In addition to the payment of expenses pursuant to Section 9.2, whether or not the
transactions contemplated hereby shall be consummated, Borrower agrees to defend (subject to
Indemnitees’ selection of counsel), indemnify, pay and hold harmless, Issuing Bank and each of its
officers, partners, members, directors, trustees, advisors, employees, agents, sub-agents and
affiliates (each, an “Indemnitee”), from and against any and all Indemnified Liabilities;
provided, Borrower shall not have any obligation to any Indemnitee hereunder with respect
to any Indemnified Liabilities to the extent such Indemnified Liabilities arise from the gross
negligence or willful misconduct of such Indemnitee, in each case, as determined by a final,
non-appealable judgment of a court of competent jurisdiction. To the extent that the undertakings
to

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defend, indemnify, pay and hold harmless set forth in this Section 9.3 may be unenforceable in
whole or in part because they are violative of any law or public policy, Borrower shall contribute
the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and
satisfaction of all Indemnified Liabilities incurred by Indemnitees or any of them.

     (b) The Borrower further agrees that neither the Issuing Bank or any other Indemnitee will
have any liability to the Borrower or any person asserting claims on behalf of or in right of the
Borrower or any other person in connection with or as a result of either this arrangement or any
matter referred to in this Agreement, any other Credit Document or the Letter of Credit; except in
the case of the Borrower to the extent that any losses, claims, damages, liabilities or expenses
incurred by the Borrower or its respective affiliates, shareholders, partners, members or other
equity holders have been found by a final, non-appealable judgment of a court of competent
jurisdiction to have resulted from the gross negligence or willful misconduct of the Issuing Bank
in performing the services that are the subject of this Agreement; provided, however, that in no
event will such the Issuing Bank or any other Indemnitee have any liability for any indirect,
consequential, special or punitive damages in connection with or as a result of the Issuing Bank’s
or such Indemnitee’s activities related to this Agreement, any other Credit Document or the Letter
of Credit.

     (c) To the extent permitted by applicable law, Borrower shall not assert, and Borrower hereby
waives, any claim against Issuing Bank, the Issuing Bank’s Affiliates and each of their respective
officers, partners, members, directors, trustees, advisors, employees, agents and sub-agents on any
theory of liability, for special, indirect, consequential or punitive damages (as opposed to
direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty
imposed by any applicable legal requirement) arising out of, in connection with, as a result of, or
in any way related to, this Agreement or any other Credit Document or any agreement or instrument
contemplated hereby or thereby or referred to herein or therein, the transactions contemplated
hereby or thereby, the Letter of Credit or the use of the proceeds thereof or any act or omission
or event occurring in connection therewith, and Borrower hereby waives, releases and agrees not to
sue upon any such claim or any such damages, whether or not accrued and whether or not known or
suspected to exist in its favor.

     9.4. Set-Off. In addition to any rights now or hereafter granted under applicable law and not
by way of limitation of any such rights, upon the occurrence of any Event of Default Issuing Bank
is hereby authorized by Borrower at any time or from time to time, without notice to Borrower or to
any other Person, any such notice being hereby expressly waived, to set off and to appropriate and
to apply any and all deposits (general or special, including Indebtedness evidenced by certificates
of deposit, whether matured or unmatured, but not including trust accounts) and any other
Indebtedness at any time held or owing by Issuing Bank to or for the credit or the account of
Borrower against and on account of the obligations and liabilities of Borrower to Issuing Bank
hereunder, the Letter of Credit and participations therein and under the other Credit Documents,
including all claims of any nature or description arising out of or connected hereto, the Letter of
Credit and participations therein or with any other Credit Document, irrespective of whether or not
(a) Issuing Bank shall have made any demand hereunder or (b) any amounts in respect of the Letter
of Credit or any other amounts due hereunder shall have become due and payable pursuant to Section
2 and although such obligations and liabilities, or any of them, may be contingent or unmatured.

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     9.5. Amendments and Waivers.

          No amendment, modification, termination or waiver of any provision of the Credit Documents, or
consent to any departure by Borrower therefrom shall in any event be effective, except pursuant to
an agreement in writing signed by Borrower and the Issuing Bank.

     9.6. Successors and Assigns; Participations.

     (a) Generally. This Agreement shall be binding upon the parties hereto and their
respective successors and assigns and shall inure to the benefit of the parties hereto and their
successors and assigns. Borrower’s rights or obligations hereunder and its interest therein may
not be assigned or delegated by Borrower without the prior written consent of Issuing Bank.
Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns permitted hereby and, to
the extent expressly contemplated hereby, Issuing Bank Affiliates and other Indemnitees) any legal
or equitable right, remedy or claim under or by reason of this Agreement.

     (b) Assignments.

     (i) Issuing Bank may assign to one of its Affiliates (each, an “Assignee”) all of
Issuing Bank’s rights and obligations under this Agreement (which shall include its
Commitment and the Obligations at the time owing to Issuing Bank) with the prior written
consent (such consent not to be unreasonably withheld) of Borrower, provided that no
consent of Borrower shall be required if an Event of Default has occurred and is continuing.
Subject to notification of an assignment and consent of Borrower (if required), Issuing
Bank shall cease to be a party hereto but shall continue to be entitled to the benefits of
Sections 2.6, 2.7 and 9.3. Borrower hereby agrees to execute any amendment and/or any other
document that may be necessary to effectuate such an assignment.

     (ii) Borrower agrees that each Assignee shall be entitled to the benefits of the
Issuing Bank under Sections 2.6 and 2.7; provided, that such Assignee shall
not be entitled to receive any greater payment under Section 2.6 and 2.7 than the Issuing
Bank would have been entitled to receive with respect to the interest assigned to such
Assignee.

     (c) Participations.

     (i) Issuing Bank shall have the right at any time to sell one or more participations to
any Person in all or any part of any Obligations outstanding hereunder.

     (ii) The holder of any such participation, other than an Affiliate of Issuing Bank
granting such participation, shall not be entitled to require Issuing Bank to take or omit
to take any action hereunder except with respect to any amendment, modification or waiver
that would (A) extend the stated maturity of the Letter of Credit, or reduce the rate or
extend the time of payment of interest or fees thereon (except in connection with a waiver
of applicability of any post-default increase in interest rates) or reduce the amount
thereof, or increase the amount of the participant’s participation over the amount thereof
then in effect, (B) consent to the assignment or transfer by Borrower of any of its rights

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and obligations under this Agreement or (C) release all or substantially all of the
Collateral under the Collateral Documents (in each case, except as expressly provided in the
Credit Documents).

     (iii) Borrower agrees that each participant shall be entitled to the benefits of
Sections 2.6 and 2.7 to the same extent as if it were Issuing Bank and had acquired its
interest by assignment pursuant to paragraph (b) of this Section; provided,
that a participant shall not be entitled to receive any greater payment under
Section 2.6 and 2.7 than the Issuing Bank would have been entitled to receive with respect
to the participation sold to such participant; provided further that,
nothing herein shall require any notice to Borrower or any other Person in connection with
the sale of any participation.

     (d) Certain Other Assignments and Participations. In addition to any other assignment
or participation permitted pursuant to this Section 9.6, Issuing Bank may assign, pledge and/or
grant a security interest in all or any portion of the Obligations owed by or to Issuing Bank to
secure obligations of Issuing Bank, including any Federal Reserve Bank as collateral security
pursuant to Regulation A of the Board of Governors and any operating circular issued by such
Federal Reserve Bank; provided, that Issuing Bank shall not be relieved of any of its
obligations hereunder as a result of any such assignment and pledge, and provided
further, that in no event shall the applicable Federal Reserve Bank, pledgee or trustee, be
considered to be the “Issuing Bank” or be entitled to require Issuing Bank to take or omit to take
any action hereunder.

     9.7. Independence of Covenants. All covenants hereunder shall be given independent effect so
that if a particular action or condition is not permitted by any of such covenants, the fact that
it would be permitted by an exception to, or would otherwise be within the limitations of, another
covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken
or condition exists.

     9.8. Survival of Representations, Warranties and Agreements. All representations, warranties
and agreements made herein shall survive the execution and delivery hereof and the issuance or
extension of the Letter of Credit. Notwithstanding anything herein or implied by law to the
contrary, the agreements of Borrower set forth in Sections 9.2, 9.3 and 9.4 shall survive the
cancellation or expiration of the Letter of Credit and the reimbursement of any amounts drawn
thereunder, and the termination hereof.

     9.9. No Waiver; Remedies Cumulative. No failure or delay on the part of Issuing Bank in the
exercise of any power, right or privilege hereunder or under any other Credit Document shall impair
such power, right or privilege or be construed to be a waiver of any default or acquiescence
therein, nor shall any single or partial exercise of any such power, right or privilege preclude
other or further exercise thereof or of any other power, right or privilege. The rights, powers
and remedies given to Issuing Bank hereby are cumulative and shall be in addition to and
independent of all rights, powers and remedies existing by virtue of any statute or rule of law or
in any of the other Credit Documents. Any forbearance or failure to exercise, and any delay in
exercising, any right, power or remedy hereunder shall not impair any such right,

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power or remedy or be construed to be a waiver thereof, nor shall it preclude the further
exercise of any such right, power or remedy.

     9.10. Marshalling; Payments Set Aside. Issuing Bank shall not be under any obligation to
marshal any assets in favor of Borrower or any other Person or against or in payment of any or all
of the Obligations. To the extent that Borrower makes a payment or payments to Issuing Bank or
Issuing Bank enforces any security interests or exercises any right of setoff, and such payment or
payments or the proceeds of such enforcement or setoff or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a
trustee, receiver or any other party under any bankruptcy law, any other state or federal law,
common law or any equitable cause, then, to the extent of such recovery, the obligation or part
thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related
thereto, shall be revived and continued in full force and effect as if such payment or payments had
not been made or such enforcement or setoff had not occurred.

     9.11. Severability. In case any provision in or obligation hereunder or under any other
Credit Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity,
legality and enforceability of the remaining provisions or obligations, or of such provision or
obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

     9.12. Headings. Section headings herein are included herein for convenience of reference only
and shall not constitute a part hereof for any other purpose or be given any substantive effect.

     9.13. APPLICABLE LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAW OF THE STATE
OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF.

     9.14. CONSENT TO JURISDICTION. SUBJECT TO CLAUSE (E) OF THE FOLLOWING SENTENCE, ALL JUDICIAL
PROCEEDINGS BROUGHT AGAINST ANY PARTY ARISING OUT OF OR RELATING HERETO OR ANY OTHER CREDIT
DOCUMENTS, OR ANY OF THE OBLIGATIONS, SHALL BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT
JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING THIS
AGREEMENT, BORROWER, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (A) ACCEPTS
GENERALLY AND UNCONDITIONALLY THE EXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS (OTHER THAN WITH
RESPECT TO ACTIONS BY ANY AGENT IN RESPECT OF RIGHTS UNDER ANY COLLATERAL DOCUMENT GOVERNED BY A
LAWS OTHER THAN THE LAWS OF THE STATE OF NEW YORK OR WITH RESPECT TO ANY COLLATERAL SUBJECT
THERETO); (B) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (C) AGREES THAT SERVICE OF ALL PROCESS IN
ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT
REQUESTED, TO BORROWER AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 9.1;

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(D) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (C) ABOVE IS SUFFICIENT TO CONFER PERSONAL
JURISDICTION OVER THE BORROWER IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES
EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (E) AGREES THAT ISSUING BANK RETAINS THE RIGHT
TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST BORROWER IN
THE COURTS OF ANY OTHER JURISDICTION IN CONNECTION WITH THE EXERCISE OF ANY RIGHTS UNDER ANY
COLLATERAL DOCUMENT OR THE ENFORCEMENT OF ANY JUDGMENT.

     9.15. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY
OF THE OTHER CREDIT DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS
TRANSACTION OR ISSUING BANK/ACCOUNT PARTY RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF
THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY
COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT
CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO
ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT
EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE
TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND
REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A
MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 9.15 AND EXECUTED BY EACH OF THE
PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS HERETO OR ANY OF THE OTHER CREDIT DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS
RELATING TO THE LETTER OF CREDIT. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A
WRITTEN CONSENT TO A TRIAL BY THE COURT.

     9.16. Confidentiality. Issuing Bank shall hold all non-public information regarding Borrower
and its subsidiaries and their businesses identified as such by Borrower and obtained by Issuing
Bank pursuant to the requirements hereof in accordance with Issuing Bank’s customary procedures for
handling confidential information of such nature, it being understood and agreed by Borrower that,
in any event, Issuing Bank may make (i) disclosures of such information to Issuing Bank Affiliates
and to its agents and advisors (and to other Persons authorized by Issuing Bank to organize,
present or disseminate such information in connection with disclosures otherwise made in accordance
with this Section 9.16), (ii) disclosures of such

49

 

information reasonably required by any bona fide or potential assignee, transferee or
participant in connection with the contemplated assignment, transfer or participation of any
Obligations or any participations therein or by any direct or indirect contractual counterparties
(or the professional advisors thereto) to any swap or derivative transaction relating to Borrower
and its obligations (provided, such assignees, transferees, participants, counterparties and
advisors are advised of and agree to be bound by either the provisions of this Section 9.16 or
other provisions at least as restrictive as this Section 9.16), (iii) disclosure to any rating
agency when required by it, provided that, prior to any disclosure, such rating agency
shall undertake in writing to preserve the confidentiality of any confidential information relating
to Borrower received by it from Issuing Bank, (iv) disclosures in connection with the exercise of
any remedies hereunder or under any other Credit Document and (v) disclosures required or requested
by any governmental agency or representative thereof or by the NAIC or pursuant to legal or
judicial process; provided, unless specifically prohibited by applicable law or court
order, Issuing Bank shall make reasonable efforts to notify Borrower of any request by any
governmental agency or representative thereof (other than any such request in connection with any
examination of the financial condition or other routine examination of Issuing Bank by such
governmental agency) for disclosure of any such non-public information prior to disclosure of such
information. In addition, Issuing Bank may disclose the existence of this Agreement and the
information about this Agreement to market data collectors, similar services providers to the
lending industry, and service providers to Issuing Bank in connection with the administration and
management of this Agreement and the other Credit Documents.

     9.17. Usury Savings Clause. Notwithstanding any other provision herein, the aggregate
interest rate charged with respect to any of the Obligations, including all charges or fees in
connection therewith deemed in the nature of interest under applicable law shall not exceed the
Highest Lawful Rate. If the rate of interest (determined without regard to the preceding sentence)
under this Agreement at any time exceeds the Highest Lawful Rate, the outstanding amount of the
Obligations shall bear interest at the Highest Lawful Rate until the total amount of interest due
hereunder equals the amount of interest which would have been due hereunder if the stated rates of
interest set forth in this Agreement had at all times been in effect. In addition, if when the
Obligations are repaid in full the total interest due hereunder (taking into account the increase
provided for above) is less than the total amount of interest which would have been due hereunder
if the stated rates of interest set forth in this Agreement had at all times been in effect, then
to the extent permitted by law, Borrower shall pay to Issuing Bank an amount equal to the
difference between the amount of interest paid and the amount of interest which would have been
paid if the Highest Lawful Rate had at all times been in effect. Notwithstanding the foregoing, it
is the intention of Issuing Bank and Borrower to conform strictly to any applicable usury laws.
Accordingly, if Issuing Bank contracts for, charges, or receives any consideration which
constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled
automatically and, if previously paid, shall at Issuing Bank’s option be applied to the outstanding
amount of the Obligations or be refunded to Borrower.

     9.18. Counterparts. This Agreement may be executed in any number of counterparts, each of
which when so executed and delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same instrument.

50

 

     9.19. Effectiveness; Entire Agreement. This Agreement shall become effective upon the
execution of a counterpart hereof by each of the parties hereto.

     9.20. PATRIOT Act. Issuing Bank hereby notifies Borrower that pursuant to the requirements of
the PATRIOT Act, it is required to obtain, verify and record information that identifies Borrower
and its subsidiaries, which information includes the names and addresses of Borrower and its
subsidiaries and other information that will allow Issuing Bank, to identify Borrower and its
subsidiaries in accordance with the PATRIOT Act.

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

     9.22. No Fiduciary Duty. Issuing Bank and its Affiliates (collectively, solely for purposes
of this paragraph, the “Issuing Bank”), may have economic interests that conflict with those of
Borrower, its stockholders and/or its Affiliates. Borrower agrees that nothing in the Credit
Documents or otherwise will be deemed to create an advisory, fiduciary or agency relationship or
fiduciary or other implied duty between Issuing Bank, on the one hand, and Borrower, its
stockholders or its Affiliates, on the other. Borrower acknowledges and agrees that (i) the
transactions contemplated by the Credit Documents (including the exercise of rights and remedies
hereunder and thereunder) are arm’s-length commercial transactions between Issuing Bank, on the one
hand, and Borrower, on the other, and (ii) in connection therewith and with the process leading
thereto, (x) Issuing Bank has not assumed an advisory or fiduciary responsibility in favor of
Borrower, its stockholders or its Affiliates with respect to the transactions contemplated hereby
(or the exercise of rights or remedies with respect thereto) or the process leading thereto
(irrespective of whether Issuing Bank has advised, is currently advising or will advise Borrower,
its stockholders or its Affiliates on other matters) or any other obligation to Borrower except the
obligations expressly set forth in the Credit Documents and (y) Issuing Bank is acting solely as
principal and not as the agent or fiduciary of Borrower, its management, stockholders, creditors or
any other Person. Borrower acknowledges and agrees that it has consulted its own legal and
financial advisors to the extent it deemed appropriate and that it is responsible for making its
own independent judgment with respect to such transactions and the process leading thereto.
Borrower agrees that it will not claim that Issuing Bank has rendered advisory services of any
nature or respect, or owes a fiduciary or similar duty to Borrower, in connection with such
transaction or the process leading thereto.

     9.23. Collateral Agent. Borrower acknowledges that Goldman Sachs Bank USA shall be the
“Collateral Agent” for the Issuing Bank under this Agreement for purposes of the Intercreditor
Agreement and related matters and shall be entitled to hold itself out as such and to qualify as
the “New Agent” (as that term is used in Section 5.05 of the Intercreditor Agreement). In such
capacity, Goldman Sachs Bank USA shall be entitled to the benefit of all

51

 

indemnifications and reimbursements (including without limitation those set forth in Sections
9.2 and 9.3 of this Agreement) that the Issuing Bank is entitled to hereunder.

52

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their respective officers thereunto duly authorized as of the date first written
above.

	 	 	 	 	 
	 	ALON REFINING KROTZ SPRINGS, INC.,

as Borrower

 	 
	 	By:  	/s/ Shai Even
 	 
	 	 	Name:  	Shai Even 	 
	 	 	Title:  	SVP & CFO 	 
	 

	 	 	 	 	 
	 	GOLDMAN SACHS BANK USA, as Issuing Bank

 	 
	 	By:  	/s/ Alexis Maged
 	 
	 	 	Authorized Signatoryexv10w6

Exhibit 10.6

Execution Version

AMENDED AND RESTATED

SUPPLY AND OFFTAKE AGREEMENT

dated as of MAY 26, 2010

between

J. ARON & COMPANY

and

ALON REFINING KROTZ SPRINGS, INC.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1 DEFINITIONS AND CONSTRUCTION
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 CONDITIONS TO COMMENCEMENT
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 3 TERM OF AGREEMENT
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 4 COMMENCEMENT DATE TRANSFER
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 5 SUPPLY OF CRUDE OIL
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 6 PURCHASE PRICE FOR CRUDE OIL
	 	 	25	 
	 
	 	 	 	 
	ARTICLE 7 TARGET INVENTORY LEVELS AND WORKING CAPITAL ADJUSTMENT
	 	 	25	 
	 
	 	 	 	 
	ARTICLE 8 PURCHASE AND DELIVERY OF PRODUCTS
	 	 	29	 
	 
	 	 	 	 
	ARTICLE 9 ANCILLARY COSTS; MONTH END INVENTORY; CERTAIN DISPOSITIONS
	 	 	31	 
	 
	 	 	 	 
	ARTICLE 10 PAYMENT PROVISIONS
	 	 	32	 
	 
	 	 	 	 
	ARTICLE 11 INDEPENDENT INSPECTORS; STANDARDS OF MEASUREMENT
	 	 	36	 
	 
	 	 	 	 
	ARTICLE 12 FINANCIAL INFORMATION; CREDIT SUPPORT; AND ADEQUATE ASSURANCES
	 	 	36	 
	 
	 	 	 	 
	ARTICLE 13 REFINERY TURNAROUND, MAINTENANCE AND CLOSURE
	 	 	39	 
	 
	 	 	 	 
	ARTICLE 14 TAXES
	 	 	39	 
	 
	 	 	 	 
	ARTICLE 15 INSURANCE
	 	 	40	 
	 
	 	 	 	 
	ARTICLE 16 FORCE MAJEURE
	 	 	41	 
	 
	 	 	 	 
	ARTICLE 17 REPRESENTATIONS, WARRANTIES AND COVENANTS
	 	 	42	 
	 
	 	 	 	 
	ARTICLE 18 DEFAULT AND TERMINATION
	 	 	45	 
	 
	 	 	 	 
	ARTICLE 19 SETTLEMENT AT TERMINATION
	 	 	50	 
	 
	 	 	 	 
	ARTICLE 20 INDEMNIFICATION
	 	 	54	 
	 
	 	 	 	 
	ARTICLE 21 LIMITATION ON DAMAGES
	 	 	55	 
	 
	 	 	 	 
	ARTICLE 22 AUDIT AND INSPECTION
	 	 	55	 
	 
	 	 	 	 
	ARTICLE 23 CONFIDENTIALITY
	 	 	55	 
	 
	 	 	 	 
	ARTICLE 24 GOVERNING LAW
	 	 	56	 
	 
	 	 	 	 
	ARTICLE 25 ASSIGNMENT
	 	 	57	 
	 
	 	 	 	 
	ARTICLE 26 NOTICES
	 	 	57	 
	 
	 	 	 	 
	ARTICLE 27 NO WAIVER, CUMULATIVE REMEDIES
	 	 	57	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 28 NATURE OF THE TRANSACTION AND RELATIONSHIP OF PARTIES
	 	 	58	 
	 
	 	 	 	 
	ARTICLE 29 MISCELLANEOUS
	 	 	58	 

-ii-

 

Schedules 

	 	 	 
	Schedule	 	Description
	Schedule A

	 	Products and Product Specifications
	 
	 	 
	Schedule B

	 	Pricing Benchmarks
	 
	 	 
	Schedule C

	 	Monthly True-up Amounts
	 
	 	 
	Schedule D

	 	Operational Volume Range
	 
	 	 
	Schedule E

	 	Tank List
	 
	 	 
	Schedule F

	 	Insurance
	 
	 	 
	Schedule G

	 	Weekly Production and Invoice Schedule
	 
	 	 
	Schedule H

	 	Form of Tank-Balance Volume Report
	 
	 	 
	Schedule I

	 	Initial Target Month End Crude Volume
	 
	 	 
	Schedule J

	 	Scheduling and Communications Protocol
	 
	 	 
	Schedule K

	 	Monthly Excluded Transaction Fee Determination
	 
	 	 
	Schedule L

	 	Monthly Working Capital Adjustment
	 
	 	 
	Schedule M

	 	Notices
	 
	 	 
	Schedule N

	 	FIFO Balance Final Settlements
	 
	 	 
	Schedule O

	 	Form of Run-out Report
	 
	 	 
	Schedule P

	 	Pricing Group
	 
	 	 
	Schedule Q

	 	Form of Trade Sheet
	 
	 	 
	Schedule R

	 	Form of Step-out Inventory Sales Agreement
	 
	 	 
	Schedule S

	 	Form of Production Report

 

 

SUPPLY AND OFFTAKE AGREEMENT

This Amended and Restated Supply and Offtake Agreement (this “Agreement”) is made as of May 26,
2010 (the “Effective Date”), between J. Aron & Company (“Aron”), a general
partnership organized under the laws of New York and located at 200 West Street, New York, New York
10282-2198, and Alon Refining Krotz Springs, Inc. (the “Company”), a Delaware corporation
located at Hwy. 105 South, Krotz Springs, Louisiana 70750-0453 (each referred to individually as a
“Party” or collectively as the “Parties”).

WHEREAS, the Company owns and operates a crude oil refinery located in Krotz Springs, Louisiana for
the processing and refining of crude oil and other petroleum feedstocks and the recovery therefrom
of refined products;

WHEREAS, the Company and Aron are parties to a Supply and Offtake Agreement, (the “Original
Agreement”) dated as of April 21, 2010, pursuant to which Aron agreed to deliver crude oil and
other petroleum feedstocks to the Company for use at such refinery and purchase all refined
products produced by the refinery (other than certain excluded products); and

WHEREAS, the Parties now wish to amend and restate the Original Agreement in its entirety as more
specifically set forth herein.

NOW, THEREFORE, in consideration of the premises and respective promises, conditions, terms and
agreements contained herein, and other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the Parties do agree that the Original Agreement is hereby amended
and its entirety as of the date hereof and as follows:

ARTICLE 1

DEFINITIONS AND CONSTRUCTION

     1.1 Definitions.

     For purposes of this Agreement, including the foregoing recitals, the following terms shall
have the meanings indicated below:

     “Actual Month End Crude Volume” has the meaning specified in Section 9.2(a).

     “Actual Month End Product Volume” has the meaning specified in Section 9.2(a).

     “Actual Net Crude Consumption” means, for any Delivery Month, the actual number of
Crude Oil Barrels run by the Refinery for such Delivery Month minus the number of Other Barrels
actually delivered into the Crude Storage Tanks during such Delivery Month.

     “Additional Procurement Contract” means any Crude Oil purchase agreement between Aron
and a Third Party Supplier entered into following the Commencement Date pursuant to Section
5.3(b).

     “Adequate Assurance” has the meaning specified in Section 12.5.

 

 

     “Affected Party” has the meaning specified in Section 16.1.

     “Affected Obligations” has the meaning specified in Section 16.3.

     “Affiliate” means, in relation to any Person, any entity controlled, directly or
indirectly, by such Person, any entity that controls, directly or indirectly, such Person, or any
entity directly or indirectly under common control with such Person. For this purpose, “control”
of any entity or Person means ownership of a majority of the issued shares or voting power or
control in fact of the entity or Person.

     “Agreement” or “this Agreement” means this Amended and Restated Supply and
Offtake Agreement, as may be amended, modified, supplemented, extended, renewed or restated from
time to time in accordance with the terms hereof, including the Schedules hereto.

     “Ancillary Costs” means all freight, pipeline, transportation, storage, tariffs and
other costs and expenses incurred as a result of the purchase, movement and storage of Crude Oil or
Products undertaken in connection with or required for purposes of this Agreement (whether or not
arising under Procurement Contracts), including, ocean-going freight and other costs associated
with waterborne movements, inspection costs and fees, wharfage, port and dock fees, vessel
demurrage, lightering costs, ship’s agent fees, import charges, waterborne insurance premiums, fees
and expenses, broker’s and agent’s fees, load port charges and fees, pipeline transportation costs,
pipeline transfer and pumpover fees, pipeline throughput and scheduling charges (including any fees
and charges resulting from changes in nominations undertaken to satisfy delivery requirements under
this Agreement), pipeline and other common carrier tariffs, blending, tankage, linefill and
throughput charges, pipeline demurrage, superfund and other comparable fees, processing fees
(including fees for water or sediment removal or feedstock decontamination), merchandise processing
costs and fees, importation costs, any charges imposed by any Governmental Authority (including
Transfer Taxes (but not taxes on the net income of Aron) and customs and other duties), user fees,
fees and costs for any credit support provided to any pipelines with respect to any transactions
contemplated by this Agreement and any pipeline compensation or reimbursement payments that are not
timely paid by the pipeline to Aron. Notwithstanding the foregoing, (i) Aron’s hedging costs in
connection with this Agreement or the transactions contemplated hereby shall not be considered
Ancillary Costs (but such exclusion shall not change or be deemed to change the manner in which
Related Hedges are addressed under Articles 18 and 19 below) and (ii) any Product shipping
costs of Aron, to the extent incurred after Aron has removed such Product from the Product Storage
Tanks for its own account, shall not be considered Ancillary Costs.

     “Applicable Law” means (i) any law, statute, regulation, code, ordinance, license,
decision, order, writ, injunction, decision, directive, judgment, policy, decree and any judicial
or administrative interpretations thereof, (ii) any agreement, concession or arrangement with any
Governmental Authority and (iii) any license, permit or compliance requirement, including
Environmental Law, in each case as may be applicable to either Party or the subject matter of this
Agreement.

     “Assigned Sales Commitment” has the meaning specified in Section 8.8(a).

2

 

     “Bankrupt” means a Person that (i) is dissolved, other than pursuant to a
consolidation, amalgamation or merger, (ii) becomes insolvent or is unable to pay its debts or
fails or admits in writing its inability generally to pay its debts as they become due, (iii) makes
a general assignment, arrangement or composition with or for the benefit of its creditors, (iv)
institutes a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under
any bankruptcy or insolvency law or other similar law affecting creditor’s rights, or a petition is
presented for its winding-up or liquidation, (v) has a resolution passed for its winding-up,
official management or liquidation, other than pursuant to a consolidation, amalgamation or merger,
(vi) seeks or becomes subject to the appointment of an administrator, provisional liquidator,
conservator, receiver, trustee, custodian or other similar official for all or substantially all of
its assets, (vii) has a secured party take possession of all or substantially all of its assets, or
has a distress, execution, attachment, sequestration or other legal process levied, enforced or
sued on or against all or substantially all of its assets, (viii) files an answer or other pleading
admitting or failing to contest the allegations of a petition filed against it in any proceeding of
the foregoing nature, (ix) causes or is subject to any event with respect to it which, under
Applicable Law, has an analogous effect to any of the foregoing events, (x) has instituted against
it a proceeding seeking a judgment of insolvency or bankruptcy under any bankruptcy or insolvency
law or other similar law affecting creditors’ rights and such proceeding is not dismissed within
fifteen (15) days or (xi) takes any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any of the foregoing events.

     “Bankruptcy Code” means chapter 11 of Title 11, U.S. Code.

     “Barrel” means forty-two (42) net U.S. gallons, measured at 60° F.

     “Base Price” has the meaning specified in Section 6.2.

     “Business Day” means any day that is not a Saturday, Sunday, or other day on which
banks are authorized or required to close in the State of New York.

     “Commencement Date” has the meaning specified in Section 2.3(a).

     “Commencement Date Crude Oil Volumes” means the total quantity of Crude Oil owned by
the Company at 00:00:01 a.m., CPT, on the Commencement Date that is then held at Crude Storage
Tanks, which quantity shall be the volume of Crude Oil recorded in the Inventory Report prepared
pursuant to the Inventory Sales Agreement.

     “Commencement Date Purchase Value” means, with respect to the Commencement Date
Volumes, initially the Estimated Commencement Date Value until the Definitive Commencement Date
Value has been determined and thereafter the Definitive Commencement Date Value.

     “Commencement Date Products Volumes” means the total quantities of the Products owned
by the Company at 00:00:01 a.m., CPT, on the Commencement Date that are then held at Product
Storage Tanks, which quantities shall be the volume of Products recorded in the Inventory Report
prepared pursuant to the Inventory Sales Agreement.

3

 

     “Commencement Date Volumes” mean, collectively, the Commencement Date Crude Oil
Volumes and the Commencement Date Products Volumes.

     “Company Purchase Agreement” has the meaning specified in the Marketing and Sales
Agreement.

     “Contract Cutoff Date” means, with respect to any Procurement Contract, the date and
time by which Aron is required to provide its nominations to the Third Party Supplier thereunder
for the next monthly delivery period for which nominations are then due.

     “Contract Nomination” has the meaning specified in Section 5.4(b).

     “CPT” means the prevailing time in the Central time zone.

     “Crude Delivery Point” means the outlet flange of the Crude Storage Tanks.

     “Crude Intake Point” means the inlet flange of the Crude Storage Tanks.

     “Crude Oil” means all crude oil that Aron purchases and sells to the Company or for
which Aron assumes the payment obligation pursuant to any Procurement Contract.

     “Crude Storage Tanks” means any of the tanks adjacent to the Refinery, listed on
Schedule E hereto that store Crude Oil.

     “Default” means any event that, with notice or the passage of time, would constitute
an Event of Default.

     “Default Interest Rate” means the lesser of (i) the per annum rate of interest
calculated on a daily basis using the prime rate published in the Wall Street Journal for the
applicable day (with the rate for any day for which such rate is not published being the rate most
recently published) plus two hundred (200) basis points and (ii) the maximum rate of interest
permitted by Applicable Law.

     “Defaulting Party” has the meaning specified in Section 18.2.

     “Deferred Portion” has the meaning specified in Section 4.3.

     “Definitive Commencement Date Value” has the meaning specified in the Inventory Sales
Agreement.

     “Delivery Date” means any calendar day.

     “Delivery Month” means the month in which Crude Oil is to be delivered to the
Refinery.

     “Designated Affiliate” means in the case of Aron, Goldman, Sachs & Co.

     “Disposed Quantity” has the meaning specified in Section 9.3.

     “Disposition Amount” has the meaning specified in Section 9.3.

4

 

     “Early Termination Date” has the meaning specified Section 18.2(c).

     “Effective Date” has the meaning specified in the introductory paragraph of this
Agreement.

     “Environmental Law” means any existing or past Applicable Law, policy, judicial or
administrative interpretation thereof or any legally binding requirement that governs or purports
to govern the protection of persons, natural resources or the environment (including the protection
of ambient air, surface water, groundwater, land surface or subsurface strata, endangered species
or wetlands), occupational health and safety and the manufacture, processing, distribution, use,
generation, handling, treatment, storage, disposal, transportation, release or management of solid
waste, industrial waste or hazardous substances or materials.

     “Estimated Commencement Date Value” has the meaning specified in the Inventory Sales
Agreement.

     “Estimated Termination Amount” has the meaning specified in Section 19.2(b).

     “Estimated Yield” has the meaning specified in Section 8.3(a).

     “Event of Default” means an occurrence of the events or circumstances described in
Section 18.1.

     “Excluded Materials” means any refined petroleum products other than those that are
Products.

     “Excluded Transactions” has the meaning specified in the Marketing and Sales
Agreement.

     “Existing Sales Commitments” has the meaning specified in Section 8.8(a).

     “Existing Procurement Contract” means such crude oil purchase agreement, dated as of
the Commencement Date, between Chevron and Aron having such terms and conditions as Aron shall deem
acceptable.

     “Expiration Date” has the meaning specified in Section 3.1.

     “Extension Term” has the meaning specified in Section 3.2.

     “Fed Funds Rate” means, for any Notification Date, the rate set forth in H.15(519) or
in H.15 Daily Update for the most recently preceding Business Day under the caption “Federal funds
(effective)”; provided that if no such rate is so published for any of the immediately three
preceding Business Days, then such rate shall be the arithmetic mean of the rates for the last
transaction in overnight Federal funds arranged by each of three leading brokers of U.S. dollar
Federal funds transactions prior to 9:00 a.m., CPT, on that day, which brokers shall be selected by
Aron in a commercially reasonable manner. For purposes hereof, “H.15(519)” means the weekly
statistical release designated as such, or any successor publication, published by the Board of
Governors of the Federal Reserve System, available through the worldwide website of

5

 

the Board of Governors of the Federal Reserve System at
http://www.federalreserve.gov/releases/h15/, or any successor site or publication and “H.15 Daily
Update” means the daily update of H.15(519), available through the worldwide website of the Board
of Governors of the Federal Reserve System at http://www.federalreserve.gov/releases/h15/update/,
or any successor site or publication.

     “Force Majeure” means any cause or event reasonably beyond the control of a Party,
including fires, earthquakes, lightning, floods, explosions, storms, adverse weather, landslides
and other acts of natural calamity or acts of God; navigational accidents or maritime peril; vessel
damage or loss; strikes, grievances, actions by or among workers or lock-outs (whether or not such
labor difficulty could be settled by acceding to any demands of any such labor group of individuals
and whether or not involving employees of the Company or Aron); accidents at, closing of, or
restrictions upon the use of mooring facilities, docks, ports, pipelines, harbors, railroads or
other navigational or transportation mechanisms; disruption or breakdown of, explosions or
accidents to wells, storage plants, refineries, terminals, machinery or other facilities; acts of
war, hostilities (whether declared or undeclared), civil commotion, embargoes, blockades,
terrorism, sabotage or acts of the public enemy; any act or omission of any Governmental Authority;
good faith compliance with any order, request or directive of any Governmental Authority;
curtailment, interference, failure or cessation of supplies reasonably beyond the control of a
Party; or any other cause reasonably beyond the control of a Party, whether similar or dissimilar
to those above and whether foreseeable or unforeseeable, which, by the exercise of due diligence,
such Party could not have been able to avoid or overcome. Solely for purposes of this definition,
the failure of any Third Party Supplier to deliver Crude Oil pursuant to any Procurement Contract,
whether as a result of Force Majeure as defined above, breach of contract by such Third Party
Supplier or any other reason, shall constitute an event of Force Majeure for Aron under this
Agreement with respect to the quantity of Crude Oil subject to that Procurement Contract.

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

     “Governmental Authority” means any federal, state, regional, local, or municipal
governmental body, agency, instrumentality, authority or entity established or controlled by a
government or subdivision thereof, including any legislative, administrative or judicial body, or
any person purporting to act therefor.

     “HLS” means heavy Louisiana sweet.

     “Included Sales” has the meaning specified in Section 7.4.

     “Included Transactions” has the meaning specified in the Marketing and Sales
Agreement.

     “Independent Inspection Company” has the meaning specified in Section 11.3.

     “Initial Estimated Yield” has the meaning specified in Section 8.3(a).

     “Initial Term” has the meaning specified in Section 3.1.

6

 

     “Inventory Sales Agreement” means the purchase and sale agreement, in a form and
substance mutually agreeable to the Parties, dated as of the Commencement Date, pursuant to which
the Company is selling and transferring to Aron the Commencement Date Volumes for the Commencement
Date Purchase Value, free and clear of all liens, claims and encumbrances of any kind.

     “Latest Commencement Date” has the meaning specified in Section 2.3(a).

     “LC Default” means, as of any time, that (i) the Standby LC has then ceased to be in
effect, (ii) the issuer of the Standby LC (if such issuer is not an Affiliate of Aron) has failed
to honor a drawing made by Aron or has otherwise failed to comply with or perform its obligations
thereunder if such failure shall be continuing after the lapse of any applicable grace period or
(iii) an LC Event has occurred with respect to the Standby LC and such Standby LC has not been
renewed, extended, amended or replaced as provided in Section 12.6 below at least 15 days prior to
its then current expiry date.

     “LC Event” means, as of any time, (i) if the issuer of Standby LC is not an Affiliate
of Aron, that (a) the issuer of the Standby LC ceases to be rated at least “A-” by S&P or “A3” by
Moody’s, (b) the issuer of such Standby LC shall disaffirm, disclaim, repudiate or reject, in whole
or in part, or challenge the validity of, such Standby LC or (c) any Bankruptcy shall occur with
respect to the issuer of such Standby LC; or (ii) in any case, that (a) the Standby LC is then due
to expire in less than 90 days or (b) the available amount of the Standby LC is less than the
Required Available Amount.

     “Letter of Credit” shall mean the Standby LC or any other letter of credit provided to
Aron as credit support in connection with this Agreement or any of the transactions contemplated
hereby.

     “Liabilities” means any losses, liabilities, charges, damages, deficiencies,
assessments, interests, fines, penalties, costs and expenses (collectively, “Costs”) of any
kind (including reasonable attorneys’ fees and other fees, court costs and other disbursements),
including any Costs directly or indirectly arising out of or related to any suit, proceeding,
judgment, settlement or judicial or administrative order and any Costs arising from compliance or
non-compliance with Environmental Law.

     “Liquidated Amount” has the meaning specified in Section 18.2(b).

     “LLS” means light Louisiana sweet.

     “Long Product FIFO Price” means the price so listed on Schedule B hereto.

     “Marketing and Sales Agreement” means the products marketing and sales agreement,
dated as of the Commencement Date, between the Company and Aron pursuant to which the Product
purchased by Aron hereunder shall from time to time be marketed and sold by the Company for Aron’s
account.

     “Material Adverse Change” means a material adverse effect on and/or material adverse
change with respect to (i) the business, operations, properties, assets or financial condition of
the

7

 

Company and its Subsidiaries taken as a whole; (ii) the ability of the Company to fully and
timely perform its obligations; (iii) the legality, validity, binding effect or enforceability
against the Company of any of the Transaction Documents; or (iv) the rights and remedies available
to, or conferred upon, Aron hereunder; provided that none of the following changes or effects shall
constitute a “Material Adverse Effect”: (1) changes, or effects arising from or relating to
changes, of Laws, that are not specific to the business or markets in which the Company operates;
(2) changes arising from or relating to, or effects of, the transactions contemplated by this
Agreement or the taking of any action in accordance with this Agreement; (3) changes, or effects
arising from or relating to changes, in economic, political or regulatory conditions generally
affecting the U.S. economy as a whole, except to the extent such change or effect has a
disproportionate effect on the Company relative to other industry participants; (4) changes, or
effects arising from or relating to changes, in financial, banking, or securities markets generally
affecting the U.S. economy as a whole, (including (a) any disruption of any of the foregoing
markets, (b) any change in currency exchange rates, (c) any decline in the price of any security or
any market index and (d) any increased cost of capital or pricing related to any financing), except
to the extent such change or effect has a disproportionate effect on the Company relative to other
industry participants; and (5) changes arising from or relating to, or effects of, any seasonal
fluctuations in the business, except to the extent such change or effect has a disproportionate
effect on the Company relative to other industry participants.

     “Measured Crude Quantity” means, for any Delivery Date, the total quantity of Crude
Oil that, during such Delivery Date, was withdrawn and lifted by and delivered to the Company at
the Crude Delivery Point, as evidenced by either meter readings and meter tickets for that Delivery
Date or tank gaugings conducted at the beginning and end of such Delivery Date.

     “Measured Product Quantity” means, for any Delivery Date, the total quantity of a
particular Product that, during such Delivery Date, was delivered by the Company to Aron at the
Product Delivery Point, as evidenced by either meter readings and meter tickets for that Delivery
Date or tank gaugings conducted at the beginning and end of such Delivery Date.

     “Monthly Cover Costs” has the meaning specified in Section 7.5.

     “Monthly Crude Forecast” has the meaning specified in Section 5.2 (b).

     “Monthly Excluded Transaction Fee” has the meaning specified in Section 7.6.

     “Monthly Product Estimate” has the meaning specified in Section 8.3(b).

     “Monthly Product Sale Adjustment” has the meaning specified in Section 7.4.

     “Monthly True-up Amount” has the meaning specified in Section 10.2(a).

     “Monthly Working Capital Adjustment” is an amount to be determined pursuant to
Schedule L hereto.

     “Net Payment” has the meaning specified in Section 10.1(a).

8

 

     “Nomination Month” means the month that occurs two (2) months prior to the Delivery
Month.

     “Non-Affected Party” has the meaning specified in Section 16.1.

     “Non-Defaulting Party” has the meaning specified in Section 18.2(a).

     “Operational Volume Range” means the range of operational volumes for any given set of
associated Crude Storage Tanks for each type of Crude Oil and for any given set of associated
Product Storage Tanks for each group of Products, between the minimum volume and the maximum
volume, as set forth on Schedule D hereto.

     “Other Barrels” has the meaning specified in Section 5.3(f).

     “Party” or “Parties” has the meaning specified in the preamble to this
Agreement.

     “Person” means an individual, corporation, partnership, limited liability company,
joint venture, trust or unincorporated organization, joint stock company or any other private
entity or organization, Governmental Authority, court or any other legal entity, whether acting in
an individual, fiduciary or other capacity.

     “Pipeline Cutoff Date” means, with respect to any Pipeline System, the date and time
by which a shipper on such Pipeline System is required to provide its nominations to the entity
that schedules and tracks Crude Oil and Products in a Pipeline System for the next shipment period
for which nominations are then due.

     “Pipeline System” means the ExxonMobil Pipeline System, Colonial Pipeline System or
any other pipeline that may be used to transport Crude Oil or Products to the Crude Storage Tanks
or out of the Product Storage Tanks at the Refinery.

     “Pricing Benchmark” means, with respect to a particular grade of Crude Oil or type of
Product, the pricing index, formula or benchmark indicated on Schedule B hereto.

     “Procurement Contract” means either the Existing Procurement Contract or any
Additional Procurement Contract.

     “Procurement Contract Assignment” means an instrument, in form and substance
reasonably satisfactory to Aron, by which the Company assigns to Aron all rights and obligations
under a Procurement Contract and Aron assumes such rights and obligations thereunder, subject to
terms satisfactory to Aron providing for the automatic reassignment thereof to the Company in
connection with the termination of this Agreement.

     “Product” means any of the refined petroleum products listed on Schedule A hereto, as
from time to time amended by mutual agreement of the Parties.

     “Product Cost” has the meaning specified in Section 8.7.

9

 

     “Product Purchase Agreements” has the meaning specified in the Marketing and Sales
Agreement.

     “Product Storage Tanks” means any of the tanks adjacent to the Refinery, listed on
Schedule E hereto that store Products.

     “Production Week” means each consecutive day period (based on CPT) designated as a
“Production Week” on Schedule G hereto (which the Parties acknowledge will not in every case be a
seven day period).

     “Products Delivery Point” means the inlet flange of the Product Storage Tanks.

     “Products Offtake Point” means the outlet flange of the Product Storage Tanks.

     “Projected Monthly Run Volume” has the meaning specified in Section 7.1(a).

     “Projected Net Crude Consumption” means, for any Delivery Month, the Projected Monthly
Run Volume for such Delivery Month minus the number of Other Barrels that the Company indicated it
expected to deliver into the Crude Storage Tanks during such Delivery Month.

     “Refinery” means the petroleum refinery located in Krotz Springs, Louisiana owned and
operated by the Company.

     “Refinery Facilities” means all the facilities owned and operated by the Company
located at the Refinery, and any associated or adjacent facility that is used by the Company to
carry out the terms of this Agreement, excluding, however, the Crude Oil receiving and Products
delivery facilities, pipelines, tanks and associated facilities owned and operated by the Company
which constitute the Storage Facilities.

     “Required Available Amount” means such U.S. dollar amount as shall from time to time
be specified by Aron; provided that in no event shall Aron specify an amount greater than $200
million, it being agreed that the initial Required Available Amount shall equal $200 million.

     “Related Hedges” means any transactions from time to time entered into by Aron with
third parties unrelated to Aron or its Affiliates to hedge Aron’s exposure resulting from this
Agreement or any other Transaction Document and Aron’s rights and obligations hereunder or
thereunder.

     “Revised Estimated Yield” has the meaning specified in Section 8.3(a).

     “Run-out Report” has the meaning specified in Section 7.2(a).

     “Settlement Amount” has the meaning specified in Section 18.2(b).

     “Specified Indebtedness” means any obligation (whether present or future, contingent
or otherwise, as principal or surety or otherwise) of the Company in respect of borrowed money.

10

 

     “Specified Transaction” means (a) any transaction (including an agreement with respect
thereto) now existing or hereafter entered into between Aron and the Company (i) which is a rate
swap transaction, swap option, basis swap, forward rate transaction, commodity swap, commodity
option, commodity spot 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, currency swap transaction, cross-currency rate swap transaction,
currency option, weather swap, weather derivative, weather option, credit protection transaction,
credit swap, credit default swap, credit default option, total return swap, credit spread
transaction, repurchase transaction, reverse repurchase transaction, buy/sell-back transaction,
securities lending transaction, or forward purchase or sale of a security, commodity or other
financial instrument or interest (including any option with respect to any of these transactions)
or (ii) which is a type of transaction that is similar to any transaction referred to in clause (i)
that is currently, or in the future becomes, recurrently entered into the financial markets
(including terms and conditions incorporated by reference in such agreement) and that is a forward,
swap, future, option or other derivative on one or more rates, currencies, commodities, equity
securities or other equity instruments, debt securities or other debt instruments, or economic
indices or measures of economic risk or value, (b) any combination of these transactions and (c)
any other transaction identified as a Specified Transaction in this agreement or the relevant
confirmation.

     “Standby LC” means an irrevocable standby letter of credit in favor of Aron (i) in a
form and substance reasonably satisfactory to Aron, (ii) issued or confirmed by a bank that is an
Affiliate of Aron or such other issuing bank as is acceptable to Aron and (iii) that otherwise
satisfies the requirements of Section 12.4(a).

     “Standby Letter of Credit Facility Agreement” means that certain Credit Agreement
between the Company, as borrower, and the initial issuer of the Standby LC, providing for the
issuance of the Standby LC dated as of the Commencement Date.

     “Step-Out Inventory Sales Agreement” means the purchase and sale agreement, in a form
and substance mutually agreeable to the Parties, to be dated as of the Termination Date, pursuant
to which the Company shall buy Crude Oil and Products from Aron subject to the provisions of this
Agreement.

     “Storage Facilities” mean the storage, loading and offloading facilities owned or
operated by the Company located at Krotz Springs, Louisiana, including the Crude Storage Tanks, the
Product Storage Tanks and the land, piping, marine facilities, truck facilities and other
facilities related thereto, together with existing or future modifications or additions, which are
excluded from the definition of Refinery or Refinery Facilities. In addition, the term “Storage
Facilities” includes any location where a storage facility is used by the Company to store or
throughput Crude Oil or Products except those storage, loading and offloading facilities owned or
operated by the Company which are used to store Excluded Materials.

     “Storage Facilities Agreement” means the storage facilities agreement, dated as of the
Commencement Date, between the Company and Aron, pursuant to which the Company shall grant to Aron
an exclusive right to use the Storage Facilities in connection with this Agreement.

11

 

     “Supplier’s Inspector” means any Person selected by Aron in a commercially reasonable
manner that is acting as an agent for Aron or that (1) is a licensed Person who performs sampling,
quality analysis and quantity determination of the Crude Oil and Products purchased and sold
hereunder, (2) is not an Affiliate of any Party and (3) in the reasonable judgment of Aron, is
qualified and reputed to perform its services in accordance with applicable law and industry
practice, to perform any and all inspections required by Aron.

     “Supply Cost” has the meaning specified in Section 6.2.

     “Target Month End Crude Volume” has the meaning specified in Section 7.1.

     “Target Month End Product Volume” has the meaning specified in Section 7.2.

     “Tax” or “Taxes” has the meaning specified in Section 14.1.

     “Term” means the Initial Term and any Extension Term.

     “Termination Amount” means, without duplication, the total net amount owed by one
Party to the other Party upon termination of this Agreement under Section 19.2.

     “Termination Date” has the meaning specified in Section 19.1.

     “Termination Date Purchase Value” means, with respect to the Termination Date Volumes,
initially the Estimated Termination Date Value until the Definitive Termination Date Value has been
determined and thereafter the Definitive Termination Date Value (as such terms are defined in the
form of the Step-out Inventory Sales Agreement attached hereto as Schedule R).

     “Termination Date Volumes” has the meaning specified in Section 19.1(d).

     “Termination Holdback Amount” has the meaning specified in Section 19.2(b).

     “Third Party Supplier” means any seller of Crude Oil under a Procurement Contract.

     “Transaction Document” means this Agreement, the Marketing and Sales Agreement, the
Inventory Sales Agreement, the Storage Facilities Agreement, the Step-Out Inventory Sales Agreement
and any other agreements or instruments contemplated hereby or executed in connection herewith.

     “Volume Determination Procedures” mean the Company’s ordinary month-end procedures for
determining the volume of Crude Oil or Product held in any Storage Tank at a designated time.

     “Weekly Projection” has the meaning specified in Section 5.2(a).

     “Weekly Product Value” has the meaning specified in Section 10.1(d).

     “Weekly Supply Value” has the meaning specified in Section 10.1(a).

12

 

     1.2 Construction of Agreement.

     (a) Unless otherwise specified, all references herein are to the Articles,
Sections and Schedules to this Agreement, as may be from time to time amended or
modified.

     (b) All headings herein are intended solely for convenience of reference and
shall not affect the meaning or interpretation of the provisions of this Agreement.

     (c) Unless expressly provided otherwise, the word “including” as used herein
does not limit the preceding words or terms and shall be read to be followed by the
words “without limitation” or words having similar import.

     (d) Unless expressly provided otherwise, all references to days, weeks, months
and quarters mean calendar days, weeks, months and quarters, respectively.

     (e) Unless expressly provided otherwise, references herein to “consent” mean
the prior written consent of the Party at issue, which shall not be unreasonably
withheld, delayed or conditioned.

     (f) A reference to any Party to this Agreement or another agreement or document
includes the Party’s permitted successors and assigns.

     (g) Unless the contrary clearly appears from the context, for purposes of this
Agreement, the singular number includes the plural number and vice versa; and each
gender includes the other gender.

     (h) Except where specifically stated otherwise, any reference to any Applicable
Law or agreement shall be a reference to the same as amended, supplemented or
re-enacted from time to time.

     (i) Unless otherwise expressly stated herein, any reference to “volume” shall
be deemed to refer to the net volume.

     (j) 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.

     1.3 The Parties acknowledge that they and their counsel have reviewed and revised this
Agreement and that no presumption of contract interpretation or construction shall apply to the
advantage or disadvantage of the drafter of this Agreement.

13

 

ARTICLE 2

CONDITIONS TO COMMENCEMENT

     2.1 Conditions to Obligations of Aron. The obligations of Aron contemplated by this
Agreement shall be subject to satisfaction by the Company of the following conditions precedent on
and as of the Commencement Date:

     (a) The Parties shall have agreed to the pricing method to be used in the
Inventory Sales Agreement and the Inventory Sales Agreement, in form and in
substance satisfactory to Aron, shall have been duly executed by the Company and,
pursuant thereto, the Company shall have transferred to Aron all right, title and
interest in and to the Commencement Date Volumes, free and clear of all Liens;

     (b) The Parties shall have agreed to the pricing method to be used and the form
of the Step-Out Inventory Sales Agreement (which form is attached hereto as Schedule
R);

     (c) The Standby Letter of Credit Facility Agreement shall have been executed,
all documents required to perfect the security interest provided for thereunder
(including UCC-1 financing statements) shall have been executed and filed and the
status of such security interest as a “Revolving Lien” for purposes of the
Intercreditor Agreement shall have been confirmed to the satisfaction of the initial
issuer of the Standby LC and Aron;

     (d) The Standby LC shall have been issued and delivered to Aron;

     (e) The Existing Procurement Contract shall have become effective with Aron as
a purchaser thereunder;

     (f) The Company shall have duly executed the Storage Facilities Agreement in
form and in substance satisfactory to Aron;

     (g) The Company shall have duly executed the Marketing and Sales Agreement in
form and in substance satisfactory to Aron;

     (h) UCC-1 financing statements reflecting Aron as owner of all Crude Oil in the
Crude Storage Tanks and all Products in the Product Storage Tanks shall have been
prepared, executed and filed in such jurisdictions as Aron shall deem necessary or
appropriate;

     (i) The Company shall have delivered to Aron a certificate signed by Harlin R.
Dean, Senior Vice President — Legal and Secretary certifying as to incumbency,
board approval and resolutions, other matters;

     (j) The Company shall have delivered to Aron an opinion of counsel, in form and
substance satisfactory to Aron, covering such matters as Aron shall

14

 

reasonably request, including: good standing; existence and due qualification;
power and authority; due authorization and execution; enforceability; no conflicts;
provided that, subject to Aron’s consent, certain of such opinions may be delivered
by the Company’s general counsel;

     (k) No action or proceeding shall have been instituted nor shall any action by
a Governmental Authority be threatened, nor shall any order, judgment or decree have
been issued or proposed to be issued by any Governmental Authority as of the
Commencement Date to set aside, restrain, enjoin or prevent the transactions and
performance of the obligations contemplated by this Agreement;

     (l) The Refinery and the Storage Facilities shall not have been affected
adversely or threatened to be affected adversely by any loss or damage, whether or
not covered by insurance, unless such loss or damages would not have a material
adverse effect on the usual, regular and ordinary operations of the Refinery or the
Storage Facilities;

     (m) The Company shall have delivered to Aron insurance certificates evidencing
the effectiveness of the insurance policies set forth on Schedule F hereto and
otherwise comply with Article 15 below;

     (n) All representations and warranties of the Company contained herein shall be
true and correct on and as of the Commencement Date; and

     (o) The Company shall have delivered to Aron such other certificates, documents
and instruments as may be reasonably necessary to consummate the transactions
contemplated herein.

     2.2 Conditions to Obligations of the Company. The obligations of the Company
contemplated by this Agreement shall be subject to satisfaction by Aron of the following conditions
precedent on and as of the Commencement Date:

     (a) The Parties shall have agreed to the pricing method to be used in the
Inventory Sales Agreement in form and in substance satisfactory to the Company, and
the Inventory Sales Agreement shall have been duly executed by Aron and Aron shall
have paid the portion of the Commencement Date Purchase Value to the Company that is
due on the Commencement Date;

     (b) The Parties shall have agreed to the pricing method to be used and the form
of the Step-Out Inventory Sales Agreement (which form is attached hereto as Schedule
R).

     (c) Aron shall have duly executed the Storage Facilities Agreement in form and
in substance satisfactory to the Company;

     (d) Aron shall have duly executed the Marketing and Sales Agreement in form and
in substance satisfactory to the Company;

15

 

     (e) All representations and warranties of Aron contained herein shall be true
and correct on and as of the Commencement Date;

     (f) Aron shall have delivered to the Company such other certificates, documents
and instruments as may be reasonably necessary to consummate the transactions
contemplated herein; and

     (g) Aron shall have delivered satisfactory evidence of its federal form 637
license.

     2.3 Commencement Date.

     (a) Subject to the satisfaction of the conditions set forth in Sections 2.1 and
2.2, the “Commencement Date” shall be a Business Day specified by Aron in a written
notice to the Company given at least one (1) Business Day prior to such Commencement
Date, which shall occur on or after the Effective Date and on or prior to June 1,
2010 or such later date as the Parties shall agree (the “Latest Commencement
Date”).

     (b) If the Commencement Date has not occurred on or before the Latest
Commencement Date, this Agreement shall terminate on the first business day
following the Latest Commencement Date. In such case, all obligations of the
Parties hereunder shall terminate, except for the obligations set forth in
Article 2, Article 20 and Article 23; provided, however,
that nothing herein shall relieve any Party from liability for the breach of any of
its representations, warranties, covenants or agreements set forth in this
Agreement.

     (c) From and after the Effective Date, the Company shall use commercially
reasonable efforts to cause each of the conditions referred to in Section 2.1 to be
satisfied and Aron shall use commercially reasonable efforts to cause each of the
conditions referred to in Section 2.2 to be satisfied.

     (d) Without limiting the Parties’ respective obligations under this Agreement,
during the period between the Effective Date and the Commencement Date, if either
Party in its reasonable judgment deems it necessary or appropriate, the Parties may
refine the modeling underlying the computations contemplated with respect to the
amounts referred to in clauses (ii) and (iii) of Section 10.2.

ARTICLE 3

TERM OF AGREEMENT

     3.1 Term. This Agreement shall become effective on the Effective Date and, subject to
Section 2.3(b) above, shall continue for a period starting at 00:00:01 a.m. CPT on the Commencement
Date and ending at 11:59:59 p.m. CPT on May 31, 2012 (the “Initial Term”; the

16

 

last day of such Initial Term being herein referred to as the “Expiration Date,”
subject to Section 3.2 below).

     3.2 Extension. Unless either Party has delivered to the other a written notice at
least six (6) months prior to the Expiration Date then in effect, of such Party’s election not to
extend this Agreement pursuant to this Section, the Expiration Date shall, without any further
action, be automatically extended, effective as of the Expiration Date then in effect, for an
additional twelve (12) months to the next anniversary of the Expiration Date (each such 12-month
period, an “Extension Term”; the final day of such Extension Term becoming the Expiration
Date); provided, however, that the Expiration Date may not be automatically extended beyond the 4th
anniversary of the Commencement Date. In the event any Party elects not to extend the
then-applicable Expiration Date in accordance with this Section, the Parties shall perform their
obligations relating to termination pursuant to Article 19.

ARTICLE 4

COMMENCEMENT DATE TRANSFER

     4.1 Transfer and Payment on the Commencement Date. The Commencement Date Volumes
shall be sold and transferred and payment of the Estimated Commencement Date Value made as provided
in the Inventory Sales Agreement.

     4.2 Post-Commencement Date Reconciliation and True-up. Determination and payment of
the Definitive Commencement Date Value shall be made as provided in the Inventory Sales Agreement.

     4.3 Deferred Portion of Purchase Price. Aron shall defer paying to the Company ten
percent (10%) of the Definitive Commencement Date Value (the “Deferred Portion”). During
the term of this Agreement, the Deferred Portion shall constitute an account receivable owing from
Aron to the Company, in accordance with this Agreement. The Deferred Portion shall be due and
payable from Aron to the Company on the Termination Date, in accordance with this Agreement.

ARTICLE 5

SUPPLY OF CRUDE OIL

     5.1 Sale of Crude Oil. On and after the Commencement Date through the end of the Term
hereof, and subject to Aron’s ability to procure Crude Oil in accordance with the terms hereof, its
receipt of Crude Oil from the Third Party Suppliers and the other terms and conditions hereof, Aron
agrees to sell and deliver to the Company, and the Company agrees to purchase and receive from
Aron, Crude Oil as set forth herein. Aron shall, in accordance with the terms and conditions
hereof, have the right to be the exclusive supplier of Crude Oil to the Refinery and all Crude Oil
supplied under this Agreement shall be solely for use at the Refinery.

     5.2 Monthly and Weekly Forecasts and Projections.

17

 

     (a) No later than the tenth (10th) Business Day prior to the
Contract Cutoff Date of the Nomination Month, Aron shall provide the Company with a
preliminary written forecast of Aron’s Target Month End Crude Volume and Target
Month End Product Volume for the Delivery Month. During the first month of
deliveries of Crude Oil made pursuant to this Agreement, Aron’s Target Month End
Crude Volume and Target Month End Product Volume shall not exceed the midpoint of
the ranges for the Crude Oil and Product Groups in Schedule D, and further, Aron’s
Target Month End Product Volume for Catfeed shall be within 40,000 barrels of the
number of barrels of Catfeed purchased by Aron on the Commencement Date pursuant to
the Inventory Sales Agreement.

     (b) No later than four (4) Business Days prior to the earliest Contract Cutoff
Date in any Nomination Month, the Company shall provide Aron with a written forecast
of the Refinery’s anticipated Crude Oil requirements for the related Delivery Month
(each, a “Monthly Crude Forecast”).

     (c) No later than 5:00 p.m., CPT, each Monday, the Company shall provide Aron
with a written summary of the Refinery’s projected Crude Oil runs for the upcoming
Production Week (each, a “Weekly Projection”).

     (d) The Company shall promptly notify Aron in writing upon learning of any
material change in any Monthly Crude Forecast or Weekly Projection or if it is
necessary to delay any previously scheduled pipeline nominations or barge loadings.

     (e) The Parties acknowledge that the Company is solely responsible for
providing the Monthly Crude Forecast and the Weekly Projection and for making any
adjustments thereto, and the Company agrees that all such forecasts and projections
shall be prepared in good faith, with due regard to all available and reliable
historical information and the Company’s then-current business prospects, and in
accordance with such standards of care as are generally applicable in the U.S. oil
refining industry. The Company acknowledges and agrees that (1) Aron shall be
entitled to rely and act, and shall be fully protected in relying and acting, upon
all such forecasts and projections, and (2) Aron shall not have any responsibility
to make any investigation into the facts or matters stated in such forecasts or
projections.

     5.3 Procurement of Crude Oil.

     (a) As of the Commencement Date, Aron shall have become the purchaser under the
Existing Procurement Contract through executing a new Procurement Contract with the
Third Party Supplier thereunder.

     (b) From time to time during the Term of this Agreement, the Company or Aron
may propose that an Additional Procurement Contract be entered into, including any
such Additional Procurement Contract as may be entered into in connection with the
expiration of an outstanding Procurement

18

 

Contract. If the Parties mutually agree to seek Additional Procurement
Contracts, then the Company shall endeavor to identify quantities of Crude Oil that
may be acquired on a spot or term basis from one or more Third Party Suppliers. The
Company may negotiate with any such Third Party Supplier regarding the price and
other terms of such potential Additional Procurement Contract. The Company shall
have no authority to bind Aron to, or enter into on Aron’s behalf, any Additional
Procurement Contract or Procurement Contract Assignment, and the Company shall not
represent to any third party that it has such authority. If the Company has
negotiated an offer from a Third Party Supplier for an Additional Procurement
Contract (and if relevant, Procurement Contract Assignment) that the Company wishes
to be executed, the Company shall apprise Aron in writing of the terms of such offer
and Aron shall promptly determine and advise the Company as to whether Aron desires
to accept such offer. If Aron indicates its desire to accept such offer, then Aron
shall promptly endeavor to formally communicate its acceptance of such offer to the
Company and such Third Party Supplier so that the Third Party Supplier and Aron may
enter into a binding Additional Procurement Contract (and if relevant, Procurement
Contract Assignment) provided that any Additional Procurement Contract (and, if
relevant, related Procurement Contract Assignment) shall require Aron’s express
agreement and Aron shall not have any liability under or in connection with this
Agreement if for any reason it, acting in good faith, does not agree to any proposed
Additional Procurement Contract or related Procurement Contract Assignment.

     (c) If the Company determines, in its reasonable judgment, that it is
commercially beneficial for the Refinery to run a particular grade and/or volume of
Crude Oil that is available from a Third Party Supplier that is not a counterparty
with which Aron is then prepared to enter into a contract, then the Company may
execute a contract to acquire such Crude Oil for the Company’s account.

     (d) Title for each quantity of Crude Oil delivered into a Crude Storage Tank
shall pass, if delivered under a Procurement Contract, from the relevant Third Party
Supplier as provided in the relevant Procurement Contract or, if not delivered under
a Procurement Contract, from the Company to Aron, as the Crude Oil passes the Crude
Intake Point. The Parties acknowledge that the consideration due from Aron to the
Company for any Crude Oil that is not delivered under a Procurement Contract will be
reflected in the Monthly True-up Amounts determined following such delivery.

     (e) The Company agrees that, except as permitted under Section 5.3(b), (c) or
(d), it will not purchase or acquire Crude Oil from any party other than Aron during
the Term of this Agreement, unless otherwise consented to by Aron.

     (f) No later than four (4) Business Days prior to the earliest Contract Cutoff
Date in any Nomination Month, the Company shall inform Aron whether

19

 

the Company has purchased or intends to purchase any Crude Oil that is not
being procured under a Procurement Contract for delivery during the related Delivery
Month (“Other Barrels”), in which case the Company shall provide to Aron the
quantity, grade and delivery terms of such Other Barrels expected to be delivered to
the Crude Storage Tanks during such Delivery Month.

     5.4 Nominations under Procurement Contracts and for Pipelines.

     (a) On the Business Day following receipt of the Monthly Crude Forecast and
prior to the delivery of the Projected Monthly Run Volume, Aron shall provide to the
Company Aron’s preliminary Target Month End Crude Volume and Target Month End
Product Volume for the related Delivery Month if different from the Target Month End
Crude Volume and Target Month End Product Volume for the related Delivery Month
previously provided in Section 5.2(a). By no later than two (2) Business Days prior
to the earliest Contract Cutoff Date occurring in such Nomination Month, the Company
shall provide to Aron the Projected Monthly Run Volume for the Delivery Month for
which deliveries must be nominated prior to such Contract Cutoff Dates. As part of
such Projected Monthly Run Volume, the Company may specify the grade of such
Projected Monthly Run Volume, provided that such grades and their respective
quantities specified by the Company shall fall within the grades and quantities then
available to be nominated by Aron under the outstanding Procurement Contracts.

     (b) Provided that the Company provides Aron with the Projected Monthly Run
Volume as required under Section 5.4(a), Aron shall make all scheduling and other
selections and nominations (collectively, “Contract Nominations”) that are
to be made under the Procurement Contracts on or before the Contract Cutoff Dates
for the Procurement Contracts and such Contract Nominations shall reflect the
quantity of each grade specified by the Company in such Projected Monthly Run
Volume. Should any Contract Nomination not be accepted by any Third Party Supplier
under a Procurement Contract, Aron shall promptly advise the Company and use
commercially reasonable efforts with the Company and such Third Party Supplier to
revise the Contract Nomination subject to the terms of any such Procurement
Contract. Aron shall provide the Company with confirmation that such Contract
Nominations have been made.

     (c) Insofar as any pipeline nominations are required to be made by Aron for any
Crude Oil prior to any applicable Pipeline Cutoff Date for any month, Aron shall be
responsible for making such pipeline and terminal nominations for that month;
provided that, Aron’s obligation to make such nominations shall be conditioned on
its receiving from the Company scheduling instructions for that month a sufficient
number of days prior to such Pipeline Cutoff Date so that Aron can make such
nominations within the lead times required by such pipelines and terminals. Aron
shall not be responsible if a Pipeline System is unable to accept Aron’s nomination
or if the Pipeline System must allocate Crude Oil among its shippers.

20

 

     (d) For operational and other reasons relating to the conduct of its business,
the Company may, from time to time, request that Aron make adjustments or
modifications to Contract Nominations it has previously made under the Procurement
Contracts. Promptly following receipt of any such request, Aron will use its
commercially reasonable efforts to make such adjustment or modification, subject to
any limitations or restrictions under the relevant Procurement Contracts. Any
additional cost or expenses incurred as a result of such an adjustment or
modification shall constitute an Ancillary Cost hereunder.

     (e) Aron shall not nominate or to its knowledge otherwise acquire any Crude Oil
with characteristics that are not previously approved by the Company for use at the
Refinery, such approval to be in the Company’s sole and absolute discretion.

     (f) In addition to the nomination process, Aron and the Company shall follow
the mutually agreed communications protocol as set forth on Schedule J hereto, with
respect to ongoing daily coordination with feedstock suppliers, including purchases
or sales of Crude Oil outside of the normal nomination procedures.

     (g) Each of the Company and Aron agrees to use commercially reasonable efforts
in preparing the forecasts, projections and nominations required by this Agreement
in a manner intended to maintain Crude Oil and Product operational volumes within
the Operational Volume Range.

     (h) Prior to entering into any Ancillary Contract (as defined in Article
19 below) that does not by its terms expire or terminate on or as of the
Termination Date, Aron will endeavor, in good faith and subject to any
confidentiality restrictions, to afford the Company an opportunity to review and
comment on such Ancillary Contract or the terms thereof and to confer with the
Company regarding such Ancillary Contract and terms and if Aron enters into any such
Ancillary Contract without the Company’s consent, the Company shall not be obligated
to assume such Ancillary Contract pursuant to Section 19.1(c) below.

     5.5 Storage and Delivery of Crude Oil.

     (a) Aron shall have the exclusive right to store Crude Oil in the Crude Storage
Tanks as provided in the Storage Facilities Agreement.

     (b) Provided no Default or Event of Default has occurred and is continuing, the
Company shall be permitted to withdraw from the Feedstock Storage Tanks and take
delivery of Crude Oil on any day and at any time. The withdrawal and receipt of any
Crude Oil by the Company at the Feedstock Intake Point shall be on an “ex works”
basis. Aron shall be responsible only for arranging transportation and delivery of
Crude Oil into the Crude Storage Tanks and the Company shall bear sole
responsibility for arranging the withdrawal of

21

 

Crude Oil from the Crude Storage Tanks. The Company shall take all actions
necessary to maintain a connection with the Crude Storage Tanks to enable withdrawal
and delivery of Crude Oil to be made as contemplated hereby.

     5.6 Title, Risk of Loss and Custody.

     (a) Title to and risk of loss of the Crude Oil shall pass from Aron to the
Company at the Crude Delivery Point. The Company shall assume custody of the Crude
Oil as it passes the Crude Delivery Point.

     (b) During the time any Crude Oil is held in the Crude Storage Tanks, the
Company, in its capacity as operator of the Crude Storage Tanks and pursuant to the
Storage Facilities Agreement, shall be solely responsible for compliance with all
Applicable Laws, including all Environmental Laws, pertaining to the possession,
handling, use and processing of such Crude Oil and shall indemnify and hold harmless
Aron, its Affiliates and their agents, representatives, contractors, employees,
directors and officers, for all Liabilities directly or indirectly arising therefrom
except to the extent such Liabilities are caused by or attributable to any of the
matters for which Aron is indemnifying the Company pursuant to Article 20.

     (c) At and after transfer of any Crude Oil at the Crude Delivery Point, the
Company shall be solely responsible for compliance with all Applicable Laws,
including all Environmental Law pertaining to the possession, handling, use and
processing of such Crude Oil and shall indemnify and hold harmless Aron, its
Affiliates and their agents, representatives, contractors, employees, directors and
officers, for all Liabilities directly or indirectly arising therefrom.

     (d) Notwithstanding anything to the contrary herein, Aron and the Company agree
that the Company shall have an insurable interest in Crude Oil that is subject to a
Procurement Contract and that the Company may, at its election and with prior notice
to Aron, endeavor to insure the Crude Oil. If pursuant to the terms of this
Agreement, the Company bears the loss of any Crude Oil, then (subject to any other
setoff or netting rights Aron may have hereunder) any insurance payment to Aron made
to cover same shall be promptly paid over by Aron to the Company.

     5.7 Contract Documentation, Confirmations and Conditions.

     (a) Aron’s obligations to deliver Crude Oil under this Agreement shall
be subject to (i) the Company’s identifying and negotiating potential Procurement
Contracts, in accordance with Section 5.3, that are acceptable to both the Company
and Aron relating to a sufficient quantity of Crude Oil to meet the Refinery’s
requirements, (ii) the Company’s performing its obligations hereunder with respect
to providing Aron with timely nominations, forecasts and projections (including
Projected Monthly Run Volumes, as contemplated in Section 5.4(a) so that Aron may
make timely nominations under the Procurement Contracts, (iii) all

22

 

of the terms and conditions of the Procurement Contracts, and (iv) no Event of
Default having occurred and continuing with respect to the Company.

     (b) In documenting each Procurement Contract, including any Additional
Procurement Contract that may be entered into pursuant to Section 5.3(b), Aron will
endeavor and cooperate with the Company, in good faith and in a commercially
reasonable manner, to obtain the Third Party Supplier’s agreement that a copy of
such Procurement Contract may be provided to the Company; provided that this Section
5.7(b) in no way limits the Company’s rights to consent to all Procurement Contracts
as contemplated by Section 5.3(b). In addition, to the extent it is permitted to do
so, Aron will endeavor to keep the Company apprised of, and consult with the Company
regarding, the terms and conditions being incorporated into any Procurement Contract
under negotiation with a Third Party Supplier.

     (c) The Company acknowledges and agrees that, subject to the terms and
conditions of this Agreement, it is obligated to purchase and take delivery of all
Crude Oil acquired by Aron under Procurement Contracts executed in connection
herewith and subject to the terms and conditions specified in Section 5.4 above. In
the event of a dispute, Aron will provide, to the extent legally and contractually
permissible, to the Company, a copy of the Procurement Contract in question.

     5.8 DISCLAIMER OF WARRANTIES. EXCEPT FOR THE WARRANTY OF TITLE WITH RESPECT TO CRUDE
OIL DELIVERED HEREUNDER, ARON MAKES NO WARRANTY, CONDITION OR OTHER REPRESENTATION, WRITTEN OR
ORAL, EXPRESS OR IMPLIED, OF MERCHANTABILITY, FITNESS OR SUITABILITY OF THE CRUDE OIL FOR ANY
PARTICULAR PURPOSE OR OTHERWISE. FURTHER, ARON MAKES NO WARRANTY OR REPRESENTATION THAT THE CRUDE
OIL CONFORMS TO THE SPECIFICATIONS IDENTIFIED IN ARON’S CONTRACT WITH ANY THIRD PARTY SUPPLIER.

     5.9 Quality Claims and Claims Handling.

     (a) The failure of any Crude Oil that Aron hereunder sells to the Company to
meet the specifications or other quality requirements applicable thereto as stated
in Aron’s Procurement Contract for that Crude Oil shall be for the sole account of
the Company and shall not entitle the Company to any reduction in the amounts due by
it to Aron hereunder; provided, however, that any claims made by Aron with respect
to such non-conforming Crude Oil shall be for the Company’s account and resolved in
accordance with Section 5.9(d).

     (b) The Parties shall consult with each other and coordinate how to handle and
resolve any claims arising in the ordinary course of business (including claims
related to Crude Oil, pipeline or ocean transportation, and any dispute, claim, or
controversy arising hereunder between Aron and any of its vendors who supply goods
or services in conjunction with Aron’s performance of

23

 

its obligations under this Agreement) made by or against Aron. In all
instances wherein claims are made by a third party against Aron which will be for
the account of the Company, the Company shall have the right, subject to Section
5.9(c), to either direct Aron to take commercially reasonable actions in the
handling of such claims or assume the handling of such claim in the name of Aron,
all at the Company’s cost and expense. To the extent that the Company believes that
any claim should be made by Aron for the account of the Company against any third
party (whether a Third Party Supplier, terminal facility, pipeline, storage facility
or otherwise), and subject to Section 5.9(c), Aron will take any commercially
reasonable actions as requested by the Company either directly, or by allowing the
Company to do so, to prosecute such claim all at the Company’s cost and expense and
all recoveries resulting from the prosecution of such claim shall be for the account
of the Company. Aron shall, in a commercially reasonable manner, cooperate with the
Company in prosecuting any such claim and shall be entitled to assist in the
prosecution of such claim at the Company’s expense.

     (c) Notwithstanding anything in Section 5.9(b) to the contrary, Aron may notify
the Company that Aron is retaining control over the resolution of any claim referred
in Section 5.9(b) if Aron, in its reasonable judgment, has determined that it has
commercially reasonable business considerations for doing so based on any
relationships that Aron or any of its Affiliates had, has or may have with the third
party involved in such claim; provided that, subject to such considerations, Aron
shall use commercially reasonable efforts to resolve such claim, at the Company’s
expense and for the Company’s account. In addition, any claim that is or becomes
subject of Article 19 shall be handled and resolved in accordance with the
provisions of Article 19.

     (d) If any claim contemplated in this Section 5.9 involves a counterparty that
is an Affiliate of Aron and the management and operation of such counterparty is
under the actual and effective control of Aron, then the Company shall control the
dispute and resolution of such claim.

     5.10 Communications.

     (a) Each Party shall promptly provide to the other copies of any and all
written communications and documents between it and any third party which in any way
relate to Ancillary Costs, including but not limited to written communications and
documents with Pipeline Systems, provided that Aron has received such communications
and documents in respect of the Pipeline System and/or any communications and
documents related to the nominating, scheduling and/or chartering of vessels;
provided that neither Party shall be obligated to provide to the other any such
materials that contain proprietary or confidential information and, in providing any
such materials, such Party may redact or delete any such proprietary or confidential
information.

24

 

     (b) With respect to any proprietary or confidential information referred to in
Section 5.10(a), Aron shall promptly notify the Company of the nature or type of
such information and use its commercially reasonable efforts to obtain such consents
or releases as necessary to permit such information to be made available to the
Company.

     (c) The Parties shall coordinate all nominations and deliveries according to
the communications protocol set forth on Schedule J hereto.

ARTICLE 6

PURCHASE PRICE FOR CRUDE OIL

     6.1 Daily Volumes. For each Delivery Date, the Company shall provide to Aron, by no
later than 1:00 pm CPT on the next Business Day (except (i) in the case of Friday and Saturday,
then by the following Monday and (ii) in the case of Sunday and Monday, then by the following
Tuesday), meter tickets or tank gauge readings confirming the Measured Feedstock Quantity for each
Crude Storage Tank for that Delivery Date.

     6.2 Purchase Price. The per Barrel price of the Crude Oil sold to the Company
hereunder shall equal the sum of the per Barrel purchase price specified in the related Procurement
Contract under which such Crude Oil was acquired (the “Base Price”) plus $0.20 (such sum
being the “Supply Cost”), subject to application of the relevant prices as provided in
Schedule B hereto and calculation of the Monthly Crude Oil True-up Amount as provided for in
Schedule C hereto.

     6.3 Material Crude Grade Changes. If either the Company or Aron concludes in its
reasonable judgment that the specifications (including specific gravity and sulfur content of Crude
Oil) of the crude oil procured, or projected to be procured, differ materially from the HLS and LLS
Crude Oil the grades that have generally been run by the Refinery, then the Company and Aron will
endeavor in good faith to mutually agree on (i) acceptable price indices for such Crude Oil, and
(ii) a settlement payment from one party to the other sufficient to compensate the Parties for the
relative costs and benefits to each of the price differences between the prior price indices and
the amended price indices.

     6.4 For all Other Barrels procured by the Company outside of a Procurement Contract and sold
to Aron, the Company will pay Aron a fee of $0.10 per barrel. Any such amount will be included in
the applicable Monthly Crude Oil True-Up Amount. Upon Aron’s request, the Company will provide
documentation evidencing such Crude Oil purchases.

ARTICLE 7

TARGET INVENTORY LEVELS AND WORKING CAPITAL ADJUSTMENT

     7.1 Target Month End Crude Volume

     (a) By no later than two (2) Business Days prior to the earliest Contract
Cutoff Date occurring in each Nomination Month, the Company shall

25

 

notify Aron of the aggregate quantity of Crude Oil that the Company expects to
run at the Refinery during the subject Delivery Month (the “Projected Monthly
Run Volume”).

     (b) For each month of the Term hereof, the “Target Month End Crude
Volume” shall equal (i) the Target Month End Crude Volume for the immediately
preceding month, subject to any adjustment thereto made pursuant to Section 7.1,
plus (ii) the aggregate volume of Crude Oil that Aron has nominated under the
Procurement Contracts for delivery during that month pursuant to Section 5.4(b),
plus (iii) the aggregate volume of the expected Other Barrels, minus (iv) the
Projected Monthly Run Volume for that month (except that the Target Month End Crude
Volume as of the Commencement Date and as of the end of the first month of the Term
hereof shall be the respective volumes specified as such on Schedule I hereto).

     (c) In establishing a Target Month End Crude Volume, Aron acknowledges that its
ability to increase any such Target Month End Crude Volume is constrained to the
extent that the Crude Oil available for delivery under the Procurement Contracts is
not greater than the Company’s Crude Oil requirements for the Refinery for the month
related to such Target Month End Crude Volume.

     (d) After Aron has established a Target Month End Crude Volume for any month,
it may change such Target Month End Crude Volume as follows:

          (i) If the Actual Month End Crude Volume is above the Target Month End Crude Volume by more
than 35,000 Barrels and the Projected Net Crude Consumption is greater than the Actual Net Crude
Consumption, then Aron may increase the Target Month End Crude Volume for such Delivery Month by
the lesser of (i) the Actual Month End Crude Volume minus the sum of the Target Month End Crude
Volume plus 35,000 Barrels and (ii) the Projected Net Crude Consumption minus the Actual Net Crude
Consumption. If the Target Month End Crude Volume is above the Actual Month End Crude Volume by
more than 35,000 Barrels and the Actual Net Crude Consumption is greater than the Projected Net
Crude Consumption, then Aron may reduce the Target Month End Crude Volume for such Delivery Month
by the lesser of (i) the Target Month End Crude Volume minus the sum of the Actual Month End Crude
Volume plus 35,000 Barrels and (ii) the Actual Net Crude Consumption minus the Projected Net Crude
Consumption. Aron must notify the Company of its intent to make this change within four (4)
Business Days after the end of such Delivery Month. The Company may dispute this change within one
(1) Business Day after receiving such notification from Aron.

          (ii) In addition, Aron may adjust the Target Month End Crude Volume with the consent of the
Company.

In all cases described above, the changed Target Month End Crude Volume affects only the subject
month and does not impact the calculation of the Target Month End Crude Volume in subsequent months
pursuant to 7.1(b).

26

 

     7.2 Target Month End Product Volume.

     (a) No later than five (5) Business Days prior to each calendar month, the
Company shall provide to Aron its standard run-out report (the “Run-out
Report”) showing the estimated quantities of each Product that it expects to
produce and deliver to Aron during such month and the quantities of each Product it
expects to sell under the Marketing and Sales Agreement during such month (for each
Product, the “Projected Monthly Production Volume”), which may, from time to
time, be adjusted by the Company.

     (b) For each month and each type of Product, Aron shall from time to time
specify an aggregate quantity and grade that shall be the “Target Month End
Product Volume” for that month (except that the Target Month End Product Volume
for each type of Product as of the Commencement Date and as of the end of the first
month of the Term hereof shall be the respective volumes specified as such on
Schedule I hereto).

     (c) Provided that the Company has complied with its obligations under the
Marketing and Sales Agreement, and subject to events of Force Majeure, facility
turnarounds, the performance of any third parties (including purchasers of Products
under the Marketing and Sales Agreement), Aron will, in establishing each Target
Month End Product Volume endeavor in a commercially reasonable manner to cause such
Target Month End Product Volume to be within the applicable range specified for such
Product on Schedule D hereto.

     (d) In establishing a Target Month End Product Volume, Aron acknowledges that
its ability to increase or decrease any such Target Month End Product Volume is
constrained to the extent that such change would result in month end Product
inventories to not be feasible given the Company’s production forecast or the
Company’s ability to ship Product.

     (e) At any time prior to the beginning of the month to which a Target Month End
Product Volume relates, Aron may change such Target Month End Product Volume;
provided that if such change contemplates an increase in the Target Month End
Product Volume, such increase shall not be greater than the excess of the Company’s
projected production run for such month over the third party sales of such Product
that are then committed or reasonably expected to be executed and delivered during
such month, and if such change contemplates a decrease in the Target Month End
Product Volume, such decrease shall be consistent, in Aron’s reasonable judgment,
with the Company’s capacity to achieve sales under the Marketing and Sales
Agreement, taking into account the Company’s projected production run and for
gasoline and jet maximum volume delivery cycles on the Colonial Pipeline System, to
yield such reduced Target Month End Product Volume. Furthermore Aron shall not
increase or decrease its Target Month End Product Volume for Catfeed to such an
extent as would be reasonably likely to adversely affect, in any material respect,
the Company’s

27

 

refining operations; and in no event shall an increase or decrease in the
Target Month End Product Volume for Catfeed exceed 40,000 Barrels.

     (f) After Aron has established a Target Month End Product Volume, it may change
such Target Month End Product Volume if one of the following occurs: (i) the Actual
Month End Product Volume is below the minimum of the Operational Volume Range or
(ii) the Actual Month End Product Volume is above the maximum of the Operational
Volume Range, in which case Aron may change its Target Month End Product Volume for
such month to equal the Actual Month End Product Volume. Aron must notify the
Company of its intent to make this change within four (4) Business Days after the
end of such Delivery Month. The Company may dispute this change within one (1)
Business Day after receiving such notification from Aron. In all cases described
above, the changed Target Month End Product Volume affects only the subject month
and does not impact the calculation of the Target Month End Product Volume in
subsequent months.

     (g) The Target Month End Product Volume will be adjusted in accordance with the
procedure for Excluded Transactions as described in the Marketing and Sales
Agreement.

In addition, Aron may adjust the Target Month End Product Volume with the consent of the Company.

     7.3 Monthly Working Capital Adjustment. Promptly after the end of each month, Aron
shall determine the Monthly Working Capital Adjustment.

     7.4 Monthly Product Sale Adjustments. For each calendar month (or portion thereof)
during the term of the Marketing and Sales Agreement and each Product Group, Aron shall determine
whether an amount is due by one party to the other (for each Product Group, a “Monthly Product
Sale Adjustment”) in accordance with the following terms and conditions:

     (a) For each Product Group and relevant period, Aron shall determine (i) the
aggregate quantity of barrels of such Product Group sold during such period under
Product Purchase Agreements and Company Purchase Agreements, (ii) the aggregate
quantity of barrels of such Product Group sold under Excluded Transaction executed
pursuant to Section 2.2(c) of the Marketing and Sales Agreement and (iii) the
Aggregate Receipts (as defined below);

     (b) If, for any Product Group and relevant period, (i) the Aggregate Receipts
exceeds the Index Value (as defined below), then the Monthly Product Sale Adjustment
for that Product Group shall equal such excess and shall be due to the Company and
(ii) the Index Value exceeds the Aggregate Receipts, then the Monthly Product Sale
Adjustment for that Product Group shall equal such excess and shall be due to Aron;

     (c) If Aron determines that any Monthly Product Sale Adjustment is due, it will
include its calculation of such amount in the documentation provided

28

 

to the Company for the relevant period pursuant to Section 10.2 hereof and such
Monthly Product Sale Adjustment shall be incorporated as a component of the Monthly
True-up Amount due for such period which, if due to the Company, shall be expressed
as a positive number and, if due to Aron, shall be expressed as a negative number;
and

     (d) As used herein:

          (i) “Aggregate Receipts” shall mean, for any Product Group and relevant period, the
sum of (x) the actual aggregate purchase value invoiced by Aron for all quantities of such Product
Group that Aron delivered during such period (without giving effect to any offsetting Excluded
Transactions) under Product Purchase Agreements with Customers and under Company Purchase
Agreements with Company Purchasers (as defined in the Marketing and Sales Agreement) and (y) for
any Excluded Transaction executed pursuant to Section 2.2(c) of the Marketing and Sales Agreement,
the aggregate purchase price that would have been payable under the proposed Product Purchase
Agreement in connection with which such Excluded Transaction was executed;

          (ii) “Index Value” shall mean, for any Product Group and relevant period, the product
of (A) the sum of the aggregate quantity of barrels of such Product Group sold during such period
(without giving effect to any offsetting Excluded Transactions) under Product Purchase Agreements
and Company Purchase Agreements and the quantity of sales for such period covered by clause (y) of
the definition of Aggregate Receipts, multiplied by (B) the Long Product FIFO Price for that
Product Group and period.

     7.5 Monthly Cover Costs. If, for any calendar month (or portion thereof), Aron
reasonably determines that, as a result of the Company’s failure to produce the quantities of
Product projected under this Agreement or the Company’s failure to comply with its obligations
under the Marketing and Sales Agreement, Aron retains insufficient quantities of Product to comply
with its obligations to any third parties or the Company, whether under Product Purchase
Agreements, Company Purchase Agreements or Excluded Transactions, and Aron incurs any additional
costs and expenses in procuring Product from other sources for purposes of covering such delivery
obligations or the shortfall in the quantity held for its account (collectively, “Monthly Cover
Costs”), then the Company shall be obliged to reimburse Aron for such Monthly Cover Costs. If
Aron determines that any Monthly Cover Costs are due to it, Aron shall promptly communicate such
determination to the Company and, subject to any mitigation of such costs actually achieved by the
Company, include the calculation of such amount in the documentation provided to the Company for
the relevant period pursuant to Section 10.2 hereof and such Monthly Cover Costs shall be
incorporated as a component of the Monthly True-up Amount due for such period hereunder.

     7.6 Monthly Excluded Transaction Fee. For any barrel of gasoline or jet fuel
delivered by Aron under an Excluded Transaction (net of any purchases under Excluded Transactions),
Aron shall be obligated to pay to the Company an amount equal to the applicable Per Barrel
Adjustment (as set forth in Schedule K to this Agreement). For each calendar month, Aron shall
determine the net quantities of gasoline and jet fuel delivered during such month under Excluded
Transactions and the aggregate amount due under this Section 7.6 as a result of

29

 

such deliveries (the “Monthly Excluded Transaction Fee”). In addition, in computing
the Monthly Excluded Transaction Fee, no fee shall be due with respect to any barrels subject to an
Excluded Transaction Pair (as defined in the Marketing and Sales Agreement). If any Monthly
Excluded Transaction Fee is due to the Company for any period, Aron will include its calculation of
such amount in the documentation provided to the Company for the relevant period pursuant to
Section 10.2 hereunder and such Monthly Excluded Transaction Fee shall be incorporated as a
component of the Monthly True-up Amount due for such period.

ARTICLE 8

PURCHASE AND DELIVERY OF PRODUCTS

     8.1 Purchase and Sale of Products. Aron agrees to purchase and receive from the
Company, and the Company agrees to sell and deliver to Aron, the entire Products output of the
Refinery from and including the Commencement Date through the end of the Term of this Agreement, at
the prices determined pursuant to this Agreement and otherwise in accordance with the terms and
conditions of this Agreement.

     8.2 Delivery and Storage of Products.

     (a) Unless otherwise agreed by Aron, all Products shall be delivered by the
Company to Aron at the Products Delivery Point into the Product Storage Tanks, on an
FOB basis. Title and risk of loss to the Products so delivered to Aron shall pass
from the Company to Aron as such Products pass the Products Delivery Point.

     (b) Aron shall have exclusive right to store Products in the Product Storage
Tanks as provided in the Storage Facilities Agreement.

     8.3 Expected Yield and Estimated Output.

     (a) On or before the Commencement Date, the Company will provide to Aron an
expected Product yield for the Refinery based on its then current operating forecast
for the Refinery (the “Initial Estimated Yield”). From time to time, based
on its then current operating forecast for the Refinery, the Company may provide to
Aron a revised expected Product yield for the Refinery (each, a “Revised
Estimated Yield” and, together with the Initial Estimated Yield, an
“Estimated Yield”).

     (b) On the Commencement Date and thereafter at least five (5) Business Days
prior to each month, the Company shall, based on the then current Estimated Yield
and such other operating factors as it deems relevant, prepare and provide to Aron
an estimate of the Product quantities it expects to deliver to Aron during such
month (each, a “Monthly Product Estimate”).

     8.4 Delivered Quantities. For each Delivery Date, the Company shall provide to Aron,
by no later than 1:00 p.m. CPT on the next Business Day (except (i) in the case of Friday and
Saturday, then by the following Monday and (ii) in the case of Sunday and Monday, then by

30

 

the following Tuesday), meter tickets or tank gauge readings confirming the Measured Product
Quantity in each Product Storage Tank for each Product delivered during that Delivery Date.

     8.5 Title and Risk of Loss. Title and risk of loss to Products shall pass from the
Company to Aron as Products pass the Product Delivery Point.

     8.6 Product Specifications. The Company agrees that all Products sold to Aron
hereunder shall conform to the respective specifications set forth on Schedule A hereto or to such
other specifications as are from time to time agreed upon by the Parties.

     8.7 Purchase Price of Products. The per unit price for each type of Product sold to
Aron hereunder shall equal the Long Product FIFO Price specified for such Product (the “Product
Cost”), subject to application of the relevant prices as provided in Schedule B hereto and
calculation of the Monthly Product True-up Amount as provided for in Schedule C hereto.

     8.8 Resale of Products.

     (a) The Parties will endeavor, in good faith, to cause each of the Company’s
existing commitments to sell Product to a third party (an “Existing Sales
Commitments”) to be assigned by the Company to Aron pursuant to an assignment
agreement in form and substance satisfactory to Aron. Any Existing Sales Commitment
that is so assigned shall constitute an “Assigned Sales Commitment” for
purposes hereof. The Parties acknowledge that an assignment of an Existing Sales
Commitment may not occur for various reasons, including the refusal of the purchaser
thereunder to consent to such assignment or Aron’s determination that it does not
wish to have a direct contractual relationship with such purchaser.

     (b) The Company agrees that, except for the Existing Sales Commitments, the
Company will not enter into any other commitments to sell Products unless permitted
in accordance with the Marketing and Sales Agreement or otherwise consented to by
Aron in writing.

     8.9 Material Product Grade Changes. If either the Company or Aron concludes in its
reasonable judgment that the specifications or the mix of the constituents of a Pricing Group
produced, or projected to be produced, differ materially from those that have generally been
produced by the Refinery, then the Company and Aron will endeavor in good faith to mutually agree
on (i) acceptable price indices for such Product, and (ii) a settlement payment from one party to
the other sufficient to compensate the Parties for the relative costs and benefits to each of the
price differences between the prior price indices and the amended price indices.

ARTICLE 9

ANCILLARY COSTS; MONTH END INVENTORY; CERTAIN DISPOSITIONS

     9.1 Ancillary Costs.

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     (a) The Company agrees to reimburse Aron for all Ancillary Costs incurred by
Aron (regardless of whether the Crude Oil and/or Products to which any such
Ancillary Costs related have been received by or delivered to any Party). Such
reimbursement shall occur on a monthly basis as part of the Monthly True-up in
Section 10.2 below, except that Aron may require that any such Ancillary Costs be
reimbursed on demand in the event that (i) a Default or Event of Default has
occurred and is continuing, (ii) upon the Expiration Date of the Agreement or (iii)
the aggregate amount of unreimbursed Ancillary Costs at any time exceeds $2,000,000,
but only in respect of such excess. Aron shall promptly provide the Company with
copies of all invoices for Ancillary Costs incurred by Aron. All refunds or
adjustments of any type received by Aron related to any Ancillary Costs shall be
reflected in the Monthly True-up Amount as provided in Section 10.2 below.

     (b) Without limiting the foregoing, if Aron has reasonably determined (based on
its experience in any one or more of the three preceding months) that it expects the
amount of Ancillary Costs for an upcoming month to exceed $2,000,000, Aron may
require that its estimate of such Ancillary Costs (to the extent of such excess) be
paid in equal installments as part of each Net Payment made during such month, with
the actual amount of such Ancillary Costs (net of such estimated payment) to be
incorporated as a component of the Monthly True-up Amount payable in the next month.

     9.2 Month End Inventory.

     (a) As of 11:59:59 p.m., CPT, on the last day of each month, the Company shall
apply the Volume Determination Procedures to the Crude Storage Tanks and the Product
Storage Tanks, and based thereon shall determine for such month (i) the aggregate
volume of Crude Oil held in the Crude Storage Tanks at that time (the “Actual
Month End Crude Volume”) and (ii) for each Product, the aggregate volume of such
Product held in the Product Storage Tanks at that time (each, an “Actual Month
End Product Volume”). The Company shall notify Aron of the Actual Month End
Crude Volume and each Actual Month End Product Volume by no later than 5:00 p.m. CPT
on the second Business Day thereafter.

     (b) Aron may, or may have Supplier’s Inspector, witness all or any aspects of
the Volume Determination Procedures as Aron shall direct.

     9.3 Disposition Following Force Majeure.

     (a) Notwithstanding anything to the contrary, if Aron decides or is required,
due to an event of Force Majeure affecting either party or otherwise, to sell to any
unrelated third parties, in arm’s length transactions, any quantities of Crude Oil
that, based on the then current Monthly Crude Forecast or Weekly Projection, Aron
would reasonably have expected to have sold to the Company (any quantity of Crude
Oil so disposed of by Aron being referred to as a “Disposed Quantity”), then
the Company shall be obligated to pay to Aron an

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amount equal to the difference between the price at which such Disposed
Quantity would have been sold to the Company, minus the amount realized in the sale
to a third party (the “Disposition Amount”). In no event shall the Disposed
Quantity exceed the aggregate amount of Crude Oil that the Company would have been
expected to purchase based on their current Monthly Crude Forecast or Weekly
Projection for the period during which the Company is unable to take delivery of
Crude Oil as the result of the Force Majeure event or otherwise.

     (b) In connection with its selling any Disposed Quantity, Aron shall promptly
determine the Disposition Amount and issue to the Company an invoice for such
amount. The Company shall pay to Aron the invoiced amount no later than the second
Business Day after the date of such invoice. If, in connection with the sale of any
Disposed Quantity, the Disposition Amount is a negative number, then Aron shall pay
the amount of such excess to the Company no later than the second Business Day after
the date of such invoice.

ARTICLE 10

PAYMENT PROVISIONS

     10.1 Weekly Net Payments.

     (a) For each Production Week, Aron shall provide the Company with a net
settlement statement in connection with each Production Week setting forth (i) the
Weekly Supply Value (as defined below) and (ii) the Weekly Product Value (as defined
below) as per the scheduled dates to be agreed on or before the Commencement Date.
Provided no Default or Event of Default has occurred and is continuing, the Net
Payment for any week shall be calculated as set forth below. Aron shall notify the
Company of the Net Payment for a Production Week by the close of business on the
first Business Day following such Production Week. The Net Payment for any
Production Week shall be due from the Party owing such amount on the applicable
Payment Date specified on Schedule G hereto; provided that in no event shall payment
be due earlier than two (2) Business Days after Aron has provided notification of
the Net Payment for a Production Week.

     (b) If a Default or an Event of Default has occurred and is continuing, then
the Non-Defaulting Party may, at its option and without limiting any other rights or
remedies it may have hereunder or otherwise, suspend the requirement under Section
10.1(a) that payments be made weekly on a net basis and in lieu thereof the
Defaulting Party shall be required to pay all amounts upon demand.

     (c) As used herein, the “Weekly Supply Value” shall be calculated as
follows:

     (i) Using the Tank Balance Volume Report (a form of which is attached
hereto as Schedule H) provided by the Company, Aron will

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calculate the “Crude Consumption Volume” for each Crude Storage Tank as
follows: Beginning Inventory plus Receipts minus Ending Inventory, each as
reflected on the Tank Balance Volume Report. To obtain the “Daily Crude
Consumption Volume” Aron will sum the Crude Consumption Volumes for the
Crude Oil Group. The “Weekly Consumption Volume” shall be equal to the sum
of the Daily Crude Consumption Volumes for each day in the Production Week.

     (ii) Aron will use the Contract Nominations for the respective Delivery
Month to allocate the Weekly Consumption Volume among those crude grades
included in the Contract Nominations. For each crude grade so nominated,
Aron will determine a “Grade Percentage” which shall be equal to the
nominated volume of such crude grade divided by the total volume of crude
nominated.

     (iii) The “Weekly Grade Value” shall be an amount equal to (1) the
Weekly Consumption Volume, multiplied by (2) the applicable Grade
Percentage, multiplied by (3) the applicable Weekly Price, as set forth on
Schedule B, plus $0.20 per barrel, multiplied by (4) negative one “-1”.

     (iv) The “Weekly Supply Value” shall be an amount equal to sum of all
applicable Weekly Grade Values for the Production Week.

     (d) As used herein, the “Weekly Product Value” shall be calculated as
follows:

     (i) Using the Tank Balance Volume Report provided by the Company, Aron
will calculate the “Production Volume” for each Products Storage Tank as
follows: Ending Inventory plus Sales (determined on a net volume basis)
minus Beginning Inventory, each as reflected on the Tank Balance Volume
Report. To obtain the “Daily Production Volume” for each Product Group,
Aron will sum the Production Volumes for each of the applicable Products
Storage Tanks as set forth on Schedule P. The “Weekly Production Volume”
shall be equal to the sum of the Daily Production Volumes by Product Group
for each day in the Production Week.

     (ii) For each Product Group, the “Weekly Product Value” shall be an
amount equal to (1) the Weekly Production Volumes, multiplied by (2) the
applicable Weekly Price, as set forth on Schedule B.

     (iii) The “Total Weekly Product Value” shall be an amount equal to sum
of all applicable Weekly Product Values for all Product Groups for the
Production Week.

     (e) The “Net Weekly Payment” shall be an amount equal to the sum of (1) the
Total Weekly Product Value and (2) the Weekly Supply Value. If this is a

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negative amount, the absolute value will represent an amount payable to Aron
and if this is a positive amount, it will represent an amount payable to the
Company.

     (f) If the Commencement Date occurs prior to the first day of the first
Production Week, then (i) for purposes of determining the Weekly Supply Value for
that Production Week, the Beginning Inventory shall be deemed to equal the
Commencement Date Crude Oil Volume, but in all other respects the Weekly Supply
Value shall be determined solely based on activities occurring during such
Production Week and (ii) for purposes of determining the Weekly Product Value of
each Product Group for that Production Week, the Beginning Inventory shall be deemed
to be equal the Commencement Date Product Volume for that Product Group, but in all
other respects the Weekly Product Value shall be determined solely based on
activities occurring during such Production Week.

     10.2 Monthly True-Up Amount.

     (a) Aron will use commercially reasonable efforts to provide to the Company,
within fifteen (15) Business Days after the end of any calendar month, a calculation
and appropriate documentation to support such calculation for such month for a
monthly true-up payment (the “Monthly True-up Amount”). The Monthly True-up
Amount for any month shall be equal to:

     (i) the Monthly Crude Oil True-up Amount (as defined in Schedule C hereto);
plus

     (ii) the Aggregate Monthly Product True-up Amount (as defined in Schedule C
hereto), minus

     (iii) the Ancillary Costs for such month, plus

     (iv) the Monthly Excluded Transaction Fee, plus

     (v) the Monthly Product Sales Adjustment, minus

     (vi) the Monthly Cover Costs, plus

     (vii) the Monthly Working Capital Adjustment, plus

     (viii) any other amount then due from Aron to the Company under this Agreement
or any other Transaction Document, minus

     (ix) any other amount then due from the Company to Aron under this Agreement or
any other Transaction Document.

If the Monthly True-up Amount is a positive number, such amount shall be due from
Aron to the Company, and if the Monthly True-up Amount is a negative number, then
the absolute value thereof shall be due from the Company to Aron. The Company shall
pay any Monthly True-up Amount due to Aron within two (2)

35

 

Business Days after the Company’s receipt of the monthly invoice and all related
documentation supporting the invoiced amount. Aron shall pay any Monthly True-up
Amount due to the Company within two (2) Business Days after making its definitive
determination of such amount.

     (b) For purposes of determining the amounts due under clauses (i) and (ii) of
Section 10.2(a), the definitions and formulas set forth in Schedule C hereto shall
apply and for purposes of determining the amount due under clause (vii) of Section
10.2(a), the definitions and formula set forth in Schedule L hereto shall apply.

     (c) For purposes of determining the Monthly Crude Oil True-up Amount for the
first month of the Term hereof, and notwithstanding anything to the contrary in
Schedule C hereto:

     (i) the “Short Crude FIFO Position” as of the end of the prior month
(i.e., May 2010) shall equal the lesser of (x) zero and (y) the Commencement
Date Crude Oil Volume minus the Target Month End Crude Volume as of the
Commencement Date;

     (ii) the “Long Crude FIFO Position” as of the end of the prior month
shall equal the greater of (x) zero and (y) the Commencement Date Crude Oil
Volume minus the Target Month End Crude Volume as of the Commencement Date;
and

     (iii) the “FIFO Sale Price from Prior Month” shall equal the “Step-in
Price” for Crude Oil as determined pursuant to Schedule B hereto.

     (d) For the purposes of determining each Monthly Product True-up Amount for the
first month of the Term hereof, and notwithstanding anything to the contrary in
Schedule C hereto:

     (i) the “Short Product FIFO Position” as of the end of the prior month
(i.e., May 2010) for a particular Product Group shall equal the lesser of
(x) zero and (y) the Commencement Date Product Volume for that Product Group
minus the Target Month End Product Volume as of the Commencement Date for
that Product Group;

     (ii) the “Long Product FIFO Position” as of the end of the prior month
shall equal the greater of (x) zero and (y) the Commencement Date Product
Volume for that Product Group minus the Target Month End Product Volume as
of the Commencement Date for that Product Group; and

     (iii) the “Product FIFO Purchase Price from Prior Month” shall equal
the “Step-in Price” for such Product Group as determined pursuant to
Schedule B hereto.

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     (e) If the Commencement Date occurs prior to the first day of the first
Production Week, then no Monthly True-up Amount shall be due for the period from
such Commencement Date through the day preceding the first day of such Production
Week and the Monthly True-up Amount for the month of June 2010 shall be determined
by using the Commencement Date Crude Oil Volume as the “Actual Month Beginning Crude
Volume” for purposes of the computations on Schedule C and the respective
Commencement Date Product Volumes as the “Actual Month Beginning Product Volumes”
for purposes of the computations on Schedule C, in each case with respect to June
2010.

     10.3 Invoices.

     (a) Invoices shall be prepared and submitted in accordance to Schedule J
hereto.

     (b) If the Company in good faith disputes the amount of any invoice issued by
Aron relating to any amount payable hereunder (including Net Payments, Monthly
True-up Amounts or Ancillary Costs), it nonetheless shall pay Aron the full amount
of such invoice by the due date and inform Aron in writing of the portion of the
invoice with which it disagrees and why; provided that to the extent that the
Company promptly informs Aron of a calculation error that is obvious on its face,
the Company shall pay Aron the undisputed amounts and may retain such disputed
amount pending resolution of such dispute. The Parties shall cooperate in resolving
the dispute expeditiously. If the Parties agree that the Company does not owe some
or all of the disputed amount or as may be determined by a court pursuant to
Article 23, Aron shall return such amount to the Company, together with
interest at the Fed Funds Rate from the date such amount was paid, within two (2)
Business Days from, as appropriate, the date of their agreement or the date of the
final, non-appealable decision of such court. Following resolution of any such
disputed amount, Aron will issue a corrected invoice and any residual payment that
would be required thereby will be made by the appropriate Party within two (2)
Business Days. To the extent that the Existing Procurement Contract permits
disputed amounts to be retained pending resolution of disputes, the Parties agree to
permit disputed amounts to be retained hereunder on the same terms, notwithstanding
anything hereunder to the contrary.

     10.4 Other Feedstocks. If Aron procures any catfeed or other non-Crude Oil feedstocks
for the Company to run at the Refinery, the parties shall agree in connection with such procurement
upon terms for incorporating the purchase of such feedstocks into the weekly and monthly
settlements contemplated by Sections 10.1 and 10.2 above.

     10.5 Interest. Interest shall accrue on late payments under this Agreement at the
Default Interest Rate from the date that payment is due until the date that payment is actually
received by Aron.

     10.6 Payment in Full in Same Day Funds. All payments to be made under this Agreement
shall be made by telegraphic transfer of same day funds in U.S. Dollars to such bank

37

 

account at such bank as the payee shall designate in writing to the payor from time to time.
Except as expressly provided in this Agreement, all payments shall be made in full without
discount, offset, withholding, counterclaim or deduction whatsoever for any claims which a Party
may now have or hereafter acquire against the other Party, whether pursuant to the terms of this
Agreement or otherwise.

ARTICLE 11

INDEPENDENT INSPECTORS; STANDARDS OF MEASUREMENT

     11.1 Aron shall be entitled to have Supplier’s Inspector present at any time the Volume
Determination Procedures are to be applied in accordance with the terms of this Agreement and to
observe the conduct of Volume Determination Procedures.

     11.2 In addition to its rights under Section 11.1, Aron may, from time to time during the Term
of this Agreement, upon reasonable prior notice to the Company, at Aron’s own cost and expense,
have Supplier’s Inspector conduct surveys and inspections of any of the Storage Facilities or
observe any Crude Oil or Product transmission, handling, metering or other activities being
conducted at such Storage Facilities or the Delivery Points; provided that such surveys,
inspections and observations shall not interfere with the ordinary course of business being
conducted at such Storage Facilities or the Refinery.

     11.3 In the event that recalibration of meters, gauges or other measurement equipment is
requested by Aron such as “strapping,” the Parties shall select a mutually agreeable certified and
licensed independent petroleum inspection company (the “Independent Inspection Company”) to conduct
such recalibration. The cost of the Independent Inspection Company is to be shared equally by the
Company and Aron.

     11.4 Standards of Measurement. All quantity determinations herein will be corrected
to sixty (60) degrees Fahrenheit based on a U.S. gallon of two hundred thirty-one (231) cubic
inches and forty-two (42) gallons to the Barrel, in accordance with the latest supplement or
amendment to ASTM-IP petroleum measurement tables (Table 6A of ASTM-IP for Feedstocks and Table 6B
of ASTM-IP for Products).

ARTICLE 12

FINANCIAL INFORMATION; CREDIT SUPPORT; AND ADEQUATE ASSURANCES

     12.1 Provision of Financial Information. The Company shall provide Aron (i) within
ninety (90) days following the end of each of its fiscal years, a copy of the annual report,
containing audited consolidated financial statements for such fiscal year certified by independent
certified public accountants and (ii) within forty-five (45) days after the end of its first three
fiscal quarters of each fiscal year, a copy of the quarterly report, containing unaudited
consolidated financial statements for such fiscal quarter; provided that so long as the Company is
required to make public filings of its quarterly and annual financial results pursuant to the
Exchange Act, such filings are available on the SEC’s EDGAR database and such filings are made in a
timely manner, then the Company will not be required to provide such annual or

38

 

quarterly financial reports to Aron except as provided in the following sentence. To the
extent that the Company has agreed to provide any financial statements or other financial
information to any noteholder, it will provide such financial information to Aron to the same
extent and at the same time as such information is provided to such other party. In all cases the
statements shall be for the most recent accounting period and prepared in accordance with GAAP or
such other principles then in effect.

     12.2 Additional Information. Upon reasonable notice, the Company shall provide to Aron
such additional information as Aron may reasonably request to enable it to ascertain the current
financial condition of the Company, including product reports in the form of Schedule S hereto.

     12.3 Notification of Certain Events. The Company shall notify Aron within one (1)
Business Day after learning of any of the following events:

          (i) The Company’s or any of its Affiliates’ binding agreement to sell, lease, sublease,
transfer or otherwise dispose of, or grant any Person (including an Affiliate) an option to
acquire, in one transaction or a series of related transactions, all or a material portion of the
Refinery assets; or

          (ii) The Company’s or any of its Affiliates’ binding agreement to consolidate or amalgamate
with, merge with or into, or transfer all or substantially all of its assets to, another entity
(including an Affiliate).

     12.4 Credit Support.

     (a) As a condition to Aron’s entering into this Agreement, the Company has
agreed to provide to Aron, as credit support and margin for the prompt and complete
performance of all of the Company’s obligations hereunder, the Standby LC, provided
that all costs and expenses (including but not limited to the reasonable costs,
expenses, and external attorneys’ fees of Aron) of establishing, renewing,
substituting, canceling, increasing, and reducing the amount of (as the case may be)
the Standby LC shall be borne by the Company.

     (b) The Standby LC may be transferred by Aron only as follows: (i) Aron may,
without the Company’s consent, transfer the Standby LC to any party that assumes all
of Aron’s obligations under this Agreement and the other Transaction Documents, and
(ii) Aron may, with the Company’s consent, transfer the Standby LC to any party.

     (c) Nothing in this Section 12.4 shall limit any rights of Aron under any other
provision of this Agreement, including under Article 18 below.

     (d) For each calendar quarter (or portion thereof) during the Term hereof,
commencing on June 1, 2010, Aron shall pay to the Company in arrears on each March
31, June 30, September 30 and December 31, an amount equal to 1.20% of the daily
average of the Required Available Amount during such quarter (or portion thereof)
multiplied by a fraction, the numerator of which is the

39

 

aggregate number of days in such period and the denominator of which is 360;
provided that, for each quarter (or portion thereof), such amount shall become due
and payable only if no Event of Default of the type referred to in clause (j) or (k)
of Section 18.1 shall have occurred during such period and, at the time Aron’s
payment is due, there is then no uncured payment default by the Company under the
Standby Letter of Credit Facility Agreement; and provided further that, if by noon,
CPT, on any such payment date the Company has not provided to Aron reasonable
evidence (such as a wire transfer order and reference number) confirming the
Company’s payment of the fee due on that date under the Standby Letter of Credit
Facility Agreement, then Aron’s payment pursuant to this provision (subject to the
preceding proviso) shall not be due until the next Business Day.

     12.5 Adequate Assurances. If, during the Term of this Agreement, a Material Adverse
Change has occurred with respect to the Company and is continuing, then Aron may notify the Company
thereof and demand in writing that the Company provide to Aron adequate assurance of the Company’s
ability to perform its obligations hereunder. Such adequate assurance may take the form of a
prepayment from the Company to Aron in such amount as Aron reasonably deems sufficient, a provision
of additional credit support in the form of letters of credit, third party guaranties and/or
collateral security in such forms and amount and provided by such parties as Aron reasonably deems
sufficient or such other form of assurance as Aron reasonably deems sufficient, in each case taking
into account such Material Adverse Change. If such adequate assurance is not received within 10
Business Days after such demand by Aron, then such failure shall constitute an Event of Default by
the Company under clause (h) of Section 18.1.

     12.6 Actions Following an LC Event.

     (a) If an LC Event of the type described in clause (i) of the definition
thereof shall occur with respect to the Standby LC, then Aron shall endeavor, in
good faith and in a commercially reasonable manner, with the Company’s reasonable
cooperation, to arrange for the replacement of such Standby LC with a new Standby LC
that has an expiry date occurring at least six (6) months after the issuance date of
such replacement Standby LC (or, if earlier, two (2) weeks after the Termination
Date) and as to which no LC Event has occurred.

     (b) If an LC Event of the type described in clause (ii)(a) of the definition
thereof shall occur with respect to the Standby LC, then Aron shall endeavor, in
good faith and in a commercially reasonable manner, with the Company’s reasonable
cooperation, to arrange for either (i) a renewal or extension of such Standby LC for
a period of at least six (6) months after the date on which such renewal or
extension becomes effective (or, if earlier, two (2) weeks after the Termination
Date) or (ii) the replacement of such Standby LC with a new Standby LC that has an
expiry date occurring at least 6 months after the issuance date of such replacement
Standby LC and as to which no LC Event has occurred.

40

 

     (c) If an LC Event of the type described in clause (ii)(b) of the definition
thereof shall occur with respect to the Standby LC, then Aron shall endeavor, in
good faith and in a commercially reasonable manner, with the Company’s reasonable
cooperation, to arrange for either (i) an amendment of such Standby LC to increase
its available amount to the Required Available Amount then in effect or (ii) the
replacement of such Standby LC with a new Standby LC that has an expiry date
occurring at least six (6) months after the issuance date of such replacement
Standby LC (or, if earlier, two (2) weeks after the Termination Date) and as to
which no LC Event has occurred.

     (d) The Parties acknowledge and agree that the only collateral that will be
made available to support the Standby Letter of Credit Facility by the Company shall
be the “ABL” collateral as defined in the Indenture and the Intercreditor Agreement
related thereto.

     12.7 Failure to Cure an LC Event.

     (a) Subject to Section 12.7(b), if an LC Event has occurred with respect to the
Standby LC and the Standby LC has not been renewed, extended, amended or replaced as
provided in Section 12.6 above within thirty (30) days after the occurrence of such
LC Event, then for so long as such LC Event continues, Aron may, at its option,
require by written notice to the Company that the Parties terminate this Agreement
on a date occurring at least fifteen (15) days prior to the expiry date of such
Standby LC in accordance with the provisions of Article 19. If Aron makes
such election, but the Parties are unable to effect such termination at least
fifteen (15) days prior to such expiry date, then at any time thereafter Aron shall
be entitled to draw under the Standby LC to the extent it is then available;
provided that nothing in this provision shall be deemed to limit Aron’s right to
draw under the Standby LC in connection with the occurrence of any other Event of
Default hereunder.

     (b) If, despite its endeavors under Section 12.6(a), (b) or (c), as applicable,
Aron does not procure a replacement Standby LC and at the time Aron so endeavored,
one or more Affiliates of Aron were not prevented by Applicable Law or internal
policies or procedures from issuing a standby letter of credit to Aron and such
issuances would not impose prohibitive or extraordinary costs or charges (including
capital charges) on such Affiliates, then such LC Event shall not become an LC
Default.

ARTICLE 13

REFINERY TURNAROUND, MAINTENANCE AND CLOSURE

     13.1 The Company shall promptly notify Aron in writing of the date for which any maintenance
or turnaround at the Refinery has been scheduled, or any revision to previously scheduled
maintenance or turnaround, which may affect receipts of Crude Oil at the Refinery or the Storage
Facilities, the processing of Crude Oil in the Refinery or the delivery of Products to

41

 

Aron or by Aron to any third parties; provided that, in any event, such notice shall have been
given at least twenty (20) Business Days prior to the commencement of such maintenance or
turnaround. The Parties shall cooperate with each other in establishing maintenance and turnaround
schedules that do not unnecessarily interfere with the receipt of Crude Oil that Aron has committed
to purchase or the delivery of Products that Aron has committed to sell.

     13.2 The Company immediately shall notify Aron orally (followed by prompt written notice) of
any previously unscheduled downtime, maintenance or turnaround and its expected duration.

     13.3 In the event of a scheduled shutdown of the Refinery, the Company shall, to the extent
feasible, complete processing of all Crude Oil being charged to, processed at or consumed in the
Refinery at that time.

ARTICLE 14

TAXES

     14.1 The Company shall pay and indemnify and hold Aron harmless against, the amount of all
sales, use, gross receipts, value added, severance, valorem, excise, property, spill,
environmental, transaction-based, or similar taxes, duties and fees, howsoever designated (each, a
“Tax” and collectively, “Taxes”) regardless of the taxing authority, and all penalties and interest
thereon, paid, owing, asserted against, or incurred by Aron directly or indirectly with respect to
the Crude Oil procured and sold, and the Products purchased and resold, and other transactions
contemplated hereunder to the greatest extent permitted by applicable law; in the event that the
Company is not permitted to pay such Taxes, the amount due hereunder shall be adjusted such that
the Company shall bear the economic burden of the Taxes. The Company shall pay when due such
Taxes unless there is an applicable exemption from such Tax, with written confirmation of such Tax
exemption to be contemporaneously provided to Aron. To the extent Aron is required by law to
collect such Taxes, one hundred percent (100%) of such Taxes shall be added to invoices as
separately stated charges and paid in full by the Company in accordance with this Agreement, unless
the Company is exempt from such Taxes and furnishes Aron with a certificate of exemption. Aron
shall be responsible for all taxes imposed on Aron’s net income.

     14.2 If the Company disagrees with Aron’s determination that any Tax is due with respect to
transactions under this Agreement, the Company shall have the right to seek an administrative
determination from the applicable taxing authority, or, alternatively, the Company shall have the
right to contest any asserted claim for such Taxes in its own name, subject to its agreeing to
indemnify Aron for the entire amount of such contested Tax (including any associated interest
and/or late penalties) should such Tax be deemed applicable. Aron agrees to reasonably cooperate
with the Company, at the Company’s cost and expense, in the event the Company determines to contest
any such Taxes.

     14.3 The Company and Aron shall promptly inform each other in writing of any assertion by a
taxing authority of additional liability for Taxes in respect of said transactions. Any legal
proceedings or any other action against Aron with respect to such asserted liability

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shall be under Aron’s direction but the Company shall be consulted. Any legal proceedings or
any other action against the Company with respect to such asserted liability shall be under the
Company’s direction but Aron shall be consulted. In any event, the Company and Aron shall fully
cooperate with each other as to the asserted liability. Each party shall bear all the reasonable
costs of any action undertaken by the other at the Party’s request.

     14.4 Any other provision of this Agreement to the contrary notwithstanding, this Article
14 shall survive until ninety (90) days after the expiration of the statute of limitations for
the assessment, collection, and levy of any Tax.

ARTICLE 15

INSURANCE

     15.1 Insurance Coverages. The Company shall procure and maintain in full force and
effect throughout the Term of this Agreement insurance coverages of the following types and amounts
and with insurance companies rated not less than A- by A.M. Best, or otherwise equivalent in
respect of the Company’s properties and operations:

     (a) Property damage coverage on an “all risk” basis in an amount sufficient to
cover the market value or potential full replacement cost of all Crude Oil to be
delivered to the Company at the Crude Delivery Point and all Products to be
delivered to Aron at the Products Delivery Point. In the event that the market
value or potential full replacement cost of all Crude Oil and Products exceeds the
insurance limits available or the insurance limits available at commercially
reasonable rates in the insurance marketplace, the Company will maintain the highest
insurance limit available at commercially reasonable rates; provided, however, that
the Company will promptly notify Aron of the Company’s inability to fully insure any
Crude Oil and Products and provide full details of such inability. Such policies
shall be endorsed to name Aron as a loss payee with respect to any of Aron’s Crude
Oil or Product in the care, custody or control of the Company. Notwithstanding
anything to the contrary herein, Aron, may, at its option and expense, endeavor to
procure and provide such property damage coverage for the Crude Oil and Products;
provided that to the extent any such insurance is duplicative with insurance
procured by the Company, the insurance procured by the Company shall in all cases
represent, and be written to be, the primary coverage.

     (b) Comprehensive or commercial general liability coverage and umbrella or
excess liability coverage, which includes bodily injury, broad form property damage
and contractual liability, products and completed operations liability and “sudden
and accidental pollution” liability coverage in the minimum amounts indicated on
Schedule F hereto. Such policies shall include Aron as an additional insured with
respect to any of Aron’s Crude Oil or Products in the care, custody or control of
the Company.

     15.2 Additional Insurance Requirements.

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     (a) The foregoing policies shall include an endorsement that the underwriters
waive all rights of subrogation against Aron.

     (b) The Company shall cause its insurance carriers to furnish Aron with
insurance certificates, in Acord form or equivalent, evidencing the existence of the
coverages and the endorsements required above. The certificates shall specify that
insurer will endeavor to mail thirty (30) days written notice prior to cancellation
of insurance becoming effective. The Company also shall provide renewal
certificates within thirty (30) days before expiration of the policy.

     (c) The mere purchase and existence of insurance does not reduce or release
either Party from any liability incurred or assumed under this Agreement.

     (d) The Company shall comply with all notice and reporting requirements in the
foregoing policies and timely pay all premiums.

ARTICLE 16

FORCE MAJEURE

     16.1 If a Party is rendered unable by an event of Force Majeure to perform in whole or in part
any obligation or condition of this Agreement (the “Affected Party”), it shall not be
liable to the other Party to perform such obligation or condition (except for payment and
indemnification obligations) for so long as the event of Force Majeure exists and to the extent
that performance is hindered by such event of Force Majeure; provided, however, that the Affected
Party shall use any commercially reasonable efforts to avoid or remove the event of Force Majeure.
During the period that performance by the Affected Party of a part or whole of its obligations has
been suspended by reason of an event of Force Majeure, the other Party (the “Non-Affected
Party”) likewise may suspend the performance of all or a part of its obligations to the extent
that such suspension is commercially reasonable, except for any payment and indemnification
obligations. The Parties acknowledge that if, as a result of a Force Majeure, the Company were to
suspend its receipt and/or processing of Crude Oil, then Aron would be entitled to suspend, to a
comparable extent, its purchasing of Products.

     16.2 The Affected Party shall give prompt oral notice to the Non-Affected Party of its
declaration of an event of Force Majeure, to be followed by written notice within twenty-four (24)
hours after receiving notice of the occurrence of a Force Majeure event, including, to the extent
feasible, the details and the expected duration of the Force Majeure event and the volume of Crude
Oil or Products affected. The Affected Party also shall promptly notify the Non-Affected Party
when the event of Force Majeure is terminated. However, the failure or inability of the Affected
Party to provide such notice within the time periods specified above shall not preclude it from
declaring an event of Force Majeure.

     16.3 In the event the Affected Party’s performance is suspended due to an event of Force
Majeure in excess of thirty (30) consecutive days after the date that notice of such event is
given, and so long as such event is continuing, the Non-Affected Party, in its sole discretion, may
terminate or curtail its obligations under this Agreement affected by such event of Force Majeure

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(the “Affected Obligations”) by giving notice of such termination or curtailment to
the Affected Party, and neither Party shall have any further liability to the other in respect of
such Affected Obligations to the extent terminated or curtailed, except for the rights and remedies
previously accrued under this Agreement, any payment and indemnification obligations by either
Party under this Agreement and the obligations set forth in Article 19.

     16.4 If any Affected Obligation is not terminated pursuant to this Article 16 or any
other provision of this Agreement, performance shall resume to the extent made possible by the end
or amelioration of the event of Force Majeure in accordance with the terms of this Agreement;
provided, however, that the term of this Agreement shall not be extended.

     16.5 The Parties acknowledge and agree that the right of Aron to declare a Force Majeure based
upon any failure by a Third Party Supplier to deliver Crude Oil under a Procurement Contract is
solely for purposes of determining the respective rights and obligations as between Aron and the
Company with respect to any Crude Oil delivery affected thereby, and any such declaration shall not
excuse the default of such Third Party Supplier under one or more Procurement Contracts. Any
claims that Aron may have as a result of such Third Party Supplier’s failure shall be subject to
Section 5.9 hereof and any other applicable provisions of this Agreement relating to claims against
third parties.

ARTICLE 17

REPRESENTATIONS, WARRANTIES AND COVENANTS

     17.1 Mutual Representations. Each Party represents and warrants to the other Party as
of the Effective Date and each sale of Crude Oil hereunder, that:

     (a) It is an “Eligible Contract Participant” as defined in Section 1a(12) of
the Commodity Exchange Act, as amended.

     (b) It is a “forward contract merchant” in respect of this Agreement and this
Agreement and each sale of Crude Oil or Products hereunder constitutes a “forward
contract,” as such term is used in Section 556 of the Bankruptcy Code.

     (c) It is duly organized and validly existing under the laws of the
jurisdiction of its organization or incorporation and in good standing under such
laws.

     (d) It has the corporate, governmental or other legal capacity, authority and
power to execute and deliver the Transaction Documents and to perform its
obligations under this Agreement, and has taken all necessary action to authorize
the foregoing.

     (e) The execution, delivery and performance of the Transaction Documents and
the performance of its obligations thereunder and the consummation of the
transactions contemplated thereby do not violate or conflict with any Applicable
Law, any provision of its constitutional documents, any order

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or judgment of any court or Governmental Authority applicable to it or any of
its assets or any contractual restriction binding on or affecting it or any of its
assets.

     (f) All governmental and other authorizations, approvals, consents, notices and
filings that are required to have been obtained or submitted by it with respect to
the Transaction Documents have been obtained or submitted and are in full force and
effect, and all conditions of any such authorizations, approvals, consents, notices
and filings have been complied with.

     (g) Its obligations under the Transaction Documents constitute its legal, valid
and binding obligations, enforceable in accordance with its terms (subject to
applicable bankruptcy, reorganization, insolvency, moratorium or similar laws
affecting creditors’ rights generally and subject, as to enforceability, to
equitable principles of general application regardless of whether enforcement is
sought in a proceeding in equity or at law).

     (h) No Event of Default or Default has occurred and is continuing, and no such
event or circumstance would occur as a result of its entering into or performing its
obligations under the Transaction Documents.

     (i) There is not pending or, to its knowledge, threatened against it or any of
its Affiliates any action, suit or proceeding at law or in equity or before any
court, tribunal, Governmental Authority, official or any arbitrator that is likely
to affect the legality, validity or enforceability against it of this Agreement or
its ability to perform its obligations under the Transaction Documents.

     (j) It is not relying upon any representations of the other Party other than
those expressly set forth in this Agreement.

     (k) It has entered into this Agreement as principal (and not as advisor, agent,
broker or in any other capacity, fiduciary or otherwise), with a full understanding
of the material terms and risks of the same, and is capable of assuming those risks.

     (l) It has made its trading and investment decisions (including their
suitability) based upon its own judgment and any advice from its advisors as it has
deemed necessary and not in reliance upon any view expressed by the other Party.

     (m) The other Party (i) is acting solely in the capacity of an arm’s-length
contractual counterparty with respect to this Agreement, (ii) is not acting as a
financial advisor or fiduciary or in any similar capacity with respect to this
Agreement and (iii) has not given to it any assurance or guarantee as to the
expected performance or result of this Agreement.

     (n) It is not bound by any agreement that would preclude or hinder its
execution, delivery, or performance of this Agreement.

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     (o) Neither it nor any of its Affiliates has been contacted by or negotiated
with any finder, broker or other intermediary in connection with the sale of Crude
Oil or Products hereunder who is entitled to any compensation with respect thereto.

None of its directors, officers, employees or agents or those of its Affiliates has received or
will receive any commission, fee, rebate, gift or entertainment of significant value in connection
with this Agreement.

     17.2 Company’s Covenants.

     (a) In the case of any Bankruptcy with respect to the Company, and to the
extent permitted by applicable law, the Company intends that (i) Aron’s right to
liquidate, collect, net and set off rights and obligations under this Agreement and
liquidate and terminate this Agreement shall not be stayed, avoided, or otherwise
limited by the Bankruptcy Code, including sections 362(a), 547, 548 or 553 thereof;
(ii) Aron shall be entitled to the rights, remedies and protections afforded by and
under, among other sections, sections 362(b)(6), 362(b)(17), 362((b)(27), 362(o),
546(e), 546(g), 546(j), 548(d), 553, 556, 560, 561 and 562 of the Bankruptcy Code;
and (iii) any cash, securities or other property provided as performance assurance,
credit, support or collateral with respect to the transactions contemplated hereby
shall constitute “margin payments” as defined in section 101(38) of the Bankruptcy
Code and all payments for, under or in connection with the transactions contemplated
hereby, shall constitute “settlement payments” as defined in section 101(51A) of the
Bankruptcy Code.

     (b) The Company agrees that it shall have no interest in or the right to
dispose of, and shall not permit the creation of, or suffer to exist, any security
interest, lien, encumbrance, charge or other claim of any nature with respect to,
any quantities of Crude Oil prior to the delivery thereof by Aron to the Company at
the Feedstock Delivery Point or any quantities of Products after delivery thereof to
Aron at the Product Delivery Point (collectively, “Aron’s Property”). The
Company authorizes Aron to file at any time and from time to time any Uniform
Commercial Code financing statements describing the quantities of Aron’s Property
subject to this Agreement and Aron’s ownership thereof and title thereto, and the
Company shall execute and deliver to Aron, and the Company hereby authorize Aron to
file (with or without the Company’s signature), at any time and from time to time,
all amendments to financing statements, assignments, continuation financing
statements, termination statements, and other documents and instruments, in form
reasonably satisfactory to Aron, as Aron may reasonably request, to provide public
notice of Aron’s ownership of and title to the quantities of Aron’s Property subject
to this Agreement and to otherwise protect Aron’s interest therein.

     17.3 Acknowledgment. The Company acknowledges and agrees that (1) Aron is a merchant
of Crude Oil and may, from time to time, be dealing with prospective counterparties, or pursuing
trading or hedging strategies, in connection with aspects of Aron’s business which are

47

 

unrelated hereto and that such dealings and such trading or hedging strategies may be
different from or opposite to those being pursued by or for the Company, (2) Aron may, in its sole
discretion, determine whether to advise the Company of any potential transaction with a Third Party
Supplier and prior to advising the Company of any such potential transaction Aron may, in its
discretion, determine not to pursue such transaction or to pursue such transaction in connection
with another aspect of Aron’s business and Aron shall have no liability of any nature to the
Company as a result of any such determination, (3) Aron has no fiduciary or trust obligations of
any nature with respect to the Refinery or the Company, (4) Aron may enter into transactions and
purchase Crude Oil or Products for its own account or the account of others at prices more
favorable than those being paid by the Company hereunder and (5) nothing herein shall be construed
to prevent Aron, or any of its partners, officers, employees or Affiliates, in any way from
purchasing, selling or otherwise trading in Crude Oil, Products or any other commodity for its or
their own account or for the account of others, whether prior to, simultaneously with or subsequent
to any transaction under this Agreement.

ARTICLE 18

DEFAULT AND TERMINATION

     18.1 Events of Default. Notwithstanding any other provision of this Agreement, the
occurrence of any of the following shall constitute an “Event of Default”:

     (a) Either Party fails to make payment when due (i) under Section 10.1 or 10.2
hereof, Article 19 hereof or any Company Purchase Agreement within one (1)
Business Day after a written demand therefor or (ii) under any other provision
hereof or any other Transaction Document within five (5) Business Days; or

     (b) Other than a default described in Sections 18.1(a) and 18.1(c), either
Party fails to perform any material obligation or covenant to the other under this
Agreement or any other Transaction Document, which is not cured to the reasonable
satisfaction of the other Party (in its sole discretion) within ten (10) Business
Days after the date that such Party receives written notice that such obligation or
covenant has not been performed; or

     (c) Either Party breaches any material representation or material warranty made
or repeated or deemed to have been made or repeated by the Party, or any warranty or
representation proves to have been incorrect or misleading in any material respect
when made or repeated or deemed to have been made or repeated under the Transaction
Documents; provided, however, that if such breach is curable, such
breach is not cured to the reasonable satisfaction of the other Party within ten
(10) Business Days after the date that such Party receives notice that corrective
action is needed; or

     (d) Either Party becomes Bankrupt; or

     (e) Either Party or any of its Designated Affiliates (1) defaults under a
Specified Transaction and, after giving effect to any applicable notice requirement

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or grace period, there occurs a liquidation of, an acceleration of obligations
under, or any early termination of, that Specified Transaction, (2) defaults, after
giving effect to any applicable notice requirement or grace period, in making any
payment or delivery due on the last payment, delivery or exchange date of, or any
payment on early termination of, a Specified Transaction (or such default continues
for at least three (3) Business Days if there is no applicable notice requirement or
grace period) or (3) disaffirms, disclaims, repudiates or rejects, in whole or in
part, a Specified Transaction (or such action is taken by any person or entity
appointed or empowered to operate it or act on its behalf); or

     (f) The Company or any of its Affiliates sells, leases, subleases, transfers or
otherwise disposes of, in one transaction or a series of related transactions, all
or a material portion of the assets of the Refinery; or

     (g) The Company or any of its Affiliates (i) consolidates or amalgamates with,
merges with or into, or transfers all or substantially all of its assets to, another
entity (including an Affiliate) or any such consolidation, amalgamation, merger or
transfer is consummated, and (ii) (A)the successor entity resulting from any such
consolidation, amalgamation or merger or the Person that otherwise acquires all or
substantially all of the assets of the Company or any of its Affiliates does not
assume, in a manner satisfactory to Aron, all of the Company’s obligations hereunder
and under the other Transaction Documents, or (B) in the reasonable judgment of
Aron, the creditworthiness of the resulting, surviving or transferee entity, taking
into account any guaranties, is materially weaker than the Company immediately prior
to the consolidation, amalgamation, merger or transfer; or

     (h) The Company fails to provide Adequate Assurance in accordance with Section
11.3; or

     (i) There shall occur either (A) a default, event of default or other similar
condition or event (however described) in respect of the Company or any of its
Affiliates under one or more agreements or instruments relating to Specified
Indebtedness in an aggregate amount of not less than $20,000,000 which has resulted
in such Specified Indebtedness becoming due and payable under such agreements and
instruments before it would have otherwise been due and payable or (B) a default by
the Company or any of its Affiliates (individually or collectively) in making one or
more payments on the due date thereof in an aggregate amount of not less than
$20,000,000 under such agreements or instruments (after giving effect to any
applicable notice requirement or grace period); or

     (j) An “Event of Default” as defined under the Standby Letter of Credit
Facility Agreement shall have occurred and be continuing or an “Event of Default” as
defined under the Indenture, dated as of October 2, 2009, among the Company, the
guarantors thereto (if any) and Wilmington Trust FSB, as trustee

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and collateral agent relating to the Company’s 13 1/2 % Senior Secured Notes Due
2014 (the “Indenture”) shall have occurred and be continuing; or

     (k) An LC Default.

The Company shall be the Defaulting Party upon the occurrence of any of the events described in
clauses (f), (g), (h), (i), (j) and (k) above.

     18.2 Remedies Upon Event of Default.

     (a) Notwithstanding any other provision of this Agreement, if any Event of
Default with respect to the Company, on the one hand, or Aron, on the other hand
(such defaulting Party, the “Defaulting Party”) has occurred and is
continuing, Aron (where the Company is the Defaulting Party) or the Company (where
Aron is the Defaulting Party) (such non-defaulting Party or Parties, the
“Non-Defaulting Party”) may, without notice, (i) declare all of the
Defaulting Party’s obligations under this Agreement to be forthwith due and payable,
all without presentment, demand, protest or further notice of any kind, all of which
are expressly waived by the Defaulting Party and/or (ii) subject to Section 18.2(c),
exercise any rights and remedies provided or available to the Non-Defaulting Party
under this Agreement or at law or equity, including all remedies provided under the
Uniform Commercial Code and as provided under this Section 18.2.

     (b) Notwithstanding any other provision of this Agreement, if an Event of
Default has occurred and is continuing with respect to the Defaulting Party, the
Non-Defaulting Party shall have the right, immediately and at any time(s)
thereafter, to terminate this Agreement (and any other contract or agreement that
may then be outstanding among the Parties that relates specifically to this
Agreement, including any Transaction Document) and, subject to Section
18.2(c), to liquidate and terminate any or all rights and obligations under this
Agreement. The Settlement Amount (as defined below) shall be calculated in a
commercially reasonable manner based on such liquidated and terminated rights and
obligations and shall be payable by one Party to the others. The “Settlement
Amount” shall mean the amount, expressed in U.S. Dollars, of losses and costs
that are or would be incurred by the Non-Defaulting Party (expressed as a positive
number) or gains that are or would be realized by the Non-Defaulting Party
(expressed as a negative number) as a result of the liquidation and termination of
all rights and obligations under this Agreement. The determination of the
Settlement Amount shall include (without duplication): (w) all reasonable losses and
costs (or gains) incurred or realized by the Non-Defaulting Party, as a result of
maintaining, terminating or obtaining any Related Hedge, (x) the losses and costs
(or gains) incurred or realized by the Non-Defaulting Party in terminating,
transferring, redeploying or otherwise modifying any outstanding Procurement
Contracts and (y) the losses and costs (or gains) incurred or realized by the
Non-Defaulting Party to the extent it elects to dispose of any Crude Oil inventories
maintained for purposes of this Agreement. If the Settlement Amount is a

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positive number it shall be due to the Non-Defaulting Party and if it is a
negative number, the absolute value thereof shall be due to the Defaulting Party.

     (c) The Settlement Amount shall be determined by the Non-Defaulting Party,
acting in good faith, in a commercially reasonable manner. The Non-Defaulting Party
shall determine the Settlement Amount commencing as of the date on which such
termination occurs by reference to such futures, forward, swap and options markets
as it shall select in its commercially reasonable judgment; provided that the
Non-Defaulting Party is not required to effect such terminations and/or determine
the Settlement Amount on a single day, but rather may effect such terminations and
determine the Settlement Amount over a commercially reasonable period of time (the
last day of which period shall be the “Early Termination Date”). In
calculating the Settlement Amount, the Non-Defaulting Party shall discount to
present value (in any commercially reasonable manner based on London interbank rates
for the applicable period and currency) any amount which would be due at a later
date and shall add interest (at a rate determined in the same manner) to any amount
due prior to the date of the calculation.

     (d) Without limiting any other rights or remedies hereunder, if an Event of
Default has occurred and is continuing and Aron is the Non-Defaulting Party, Aron
may, in its discretion, (i) withhold or suspend its obligations, including any of
its delivery or payment obligations, under this Agreement, (ii) withdraw from
storage any and all of the Crude Oil and/or Products then in the Storage Facilities
by the Company, any of its Affiliates or any other parties on behalf of the Company
or any such Affiliate, (iii) otherwise arrange for the disposition of any Crude Oil
and/or Products subject to outstanding Procurement Contracts and/or the
modification, settlement or termination of such outstanding Procurement Contracts in
such manner as it elects and (iv) liquidate in a commercially reasonable manner any
Credit Support or other margin or collateral, to the extent not already in the form
of cash (including drawing down the Standby LC or any other letters of credit held
as margin or collateral) and apply and set off such Credit Support, margin or
collateral or the proceeds thereof against any obligation owing by the Company to
Aron. Aron shall be under no obligation to prioritize the order with respect to
which it exercises any one or more rights and remedies available hereunder. The
Company shall in all events remain liable to Aron for any amount payable by the
Company in respect of any of its obligations remaining unpaid after any such
liquidation, application and set off.

     (e) Without limiting any other rights or remedies hereunder, if an Event of
Default has occurred and is continuing and the Company is the Non-Defaulting Party,
the Company may, in its discretion, (i) withhold or suspend its obligations,
including any of its delivery or payment obligations, under this Agreement and/or
(ii) otherwise arrange for the settlement or termination of the parties’ outstanding
commitments hereunder, the sale in a commercially reasonable manner of Crude Oil
and/or Product for Aron’s account, and the

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replacement of the supply and offtake arrangement contemplated hereby with such
alternative arrangements as it may procure.

     (f) The Non-Defaulting Party shall set off (i) the Settlement Amount (if due to
the Defaulting Party), plus any performance security (including Credit Support or
any other margin or collateral) then held by the Non-Defaulting Party pursuant to
the Transaction Documents, plus (at the Non-Defaulting Party’s election) any or all
other amounts due to the Defaulting Party hereunder (including under Article
10), against (ii) the Settlement Amount (if due to the Non-Defaulting Party),
plus any performance security (including Credit Support or any other margin or
collateral) then held by the Defaulting Party, plus (at the Non-Defaulting Party’s
election) any or all other amounts due to the Non-Defaulting Party hereunder
(including under Article 10), so that all such amounts shall be netted to a
single liquidated amount payable by one Party to the other (the “Liquidated
Amount”). The Party with the payment obligation shall pay the Liquidated Amount
to the applicable other Parties within one Business Day after such amount has been
determined.

     (g) No delay or failure on the part of the Non-Defaulting Party in exercising
any right or remedy to which it may be entitled on account of any Event of Default
shall constitute an abandonment of any such right, and the Non-Defaulting Party
shall be entitled to exercise such right or remedy at any time during the
continuance of an Event of Default.

     (h) The Non-Defaulting Party’s rights under this Section shall be in addition
to, and not in limitation or exclusion of, any other rights which the Non-Defaulting
Party may have (whether by agreement, operation of law or otherwise), including any
rights of recoupment, setoff, combination of accounts or other rights under any
credit support that may from time to time be provided in connection with this
Agreement. The Defaulting Party shall indemnify and hold the Non-Defaulting Party
harmless from all reasonable costs and expenses, including reasonable attorney fees,
incurred in the exercise of any remedies hereunder.

     (i) If an Event of Default has occurred and is continuing, the Non-Defaulting
Party may, without limitation on its rights under this Section, set off amounts
which the Defaulting Party owes to it against any amounts which it owes to the
Defaulting Party (whether hereunder, under any other contract or agreement or
otherwise and whether or not then due).

     (j) The Parties acknowledge and agree that this Agreement is intended to be a
“master netting agreement” as such term is defined in section 101(38A) of the
Bankruptcy Code.

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ARTICLE 19

SETTLEMENT AT TERMINATION

     19.1 Upon expiration or termination of this Agreement for any reason other than as a result of
an Event of Default (in which case the Expiration Date (or any other date that may be agreed by the
parties) shall be the “Termination Date”), the Parties covenant and agree to proceed as
provided in this Article 19; provided that (x) this Agreement shall continue in effect
following any Termination Date until all obligations are finally settled as contemplated by this
Article 19 and (y) the provisions of this Article 19 shall in no way limit the rights and
remedies which the Non-Defaulting Party may have as a result of an Event of Default, whether
pursuant to Article 18 above or otherwise:

     (a) If any Procurement Contract does not either (i) by its terms (or the terms
under which it was originally assigned to Aron) automatically become assigned (or
reassigned) to the Company on and as of the Termination Date in a manner which
releases Aron from all obligations thereunder for all periods following the
Termination Date or (ii) by its terms, expire or terminate on and as of the
Termination Date, then the Parties shall promptly negotiate and enter into, with
each of the then existing Third Party Suppliers, assignments, assumptions and/or
such other documentation, in form and substance reasonably satisfactory to the
Parties, pursuant to which, as of the Termination Date, (i) such Procurement
Contract shall be assigned (or reassigned) to the Company or shall be terminated,
(ii) all rights and obligations of Aron under each of the then outstanding
Procurement Contracts shall be assigned to the Company, (iii) the Company shall
assume all of such obligations to be paid or performed following such termination,
and (iv) Aron shall be released by such Third Party Suppliers and the Company from
any further obligations thereunder. In connection with the assignment or
reassignment of any Procurement Contract, the Parties shall endeavor, in a
commercially reasonable manner, to facilitate the transitioning of the supply and
payment arrangements, including any change in payment terms, under the relevant
Procurement Contracts so as to prevent any material disruption in the supply of
Crude Oil thereunder.

     (b) If, pursuant to the Marketing and Sales Agreement, any sales commitments
are outstanding which, by their terms, extend beyond the Termination Date, then the
Parties shall promptly negotiate and enter into, with each of the purchasers
thereunder, assignments, assumptions and/or such other documentation, in form and
substance reasonably satisfactory to the Parties, pursuant to which, as of the
Termination Date, (i) such sales commitment shall be assigned (or reassigned) to the
Company or shall be terminated, (ii) all rights and obligations of Aron with respect
to each then outstanding sales commitment shall be assigned to the Company,
(iii) the Company shall assume all of such obligations to be paid or performed
following such termination, and (iv) Aron shall be released by the purchasers
thereunder and the Company from any further obligations with respect to such sales
commitments. In connection with the assignment or reassignment of any Procurement
Contract, the Parties shall endeavor, in a commercially reasonable manner, to
facilitate the transitioning of the Product marketing and sales arrangements so as
to prevent any material disruption in the distribution of Products from the
Refinery.

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     (c) In the event that Aron has become a party to any other third party service
contract in connection with this Agreement and the transactions contemplated hereby,
including any pipeline, terminalling, storage and shipping arrangement (an
“Ancillary Contract”) and such Ancillary Contract does not by its terms
expire or terminate on and as of the Termination Date, then the Parties shall
promptly negotiate and enter into with each service provider thereunder such
instruments or other documentation, in form and substance reasonably satisfactory to
the Parties, pursuant to which as of the Termination Date (i) such Ancillary
Contract shall be assigned to the Company or shall be terminated, (ii) all rights
and obligations of Aron with respect to each then outstanding Ancillary Contract
shall be assigned to the Company, (iii) the Company shall assume all of such
obligations to be paid or performed following such termination, and (iv) Aron shall
be released by the third party service providers thereunder and the Company from any
further obligations with respect to such Ancillary Contract.

     (d) The Parties shall enter into the Step-Out Inventory Sales Agreement,
pursuant to which the volume of Crude Oil and Products in the Storage Tanks shall be
purchased and transferred as contemplated therein. The Crude Oil volumes measured
by the Independent Inspector at the Termination Date and recorded in the Independent
Inspector’s final inventory report shall be the “Termination Date Crude Oil
Volumes” for the purposes of this Agreement and the Product volumes measured by
the Independent Inspector at the Termination Date and recorded in the Independent
Inspector’s final inventory report shall be the “Termination Date Product
Volumes” for purposes of this Agreement, and such Termination Date Crude Oil
Volumes and Termination Date Product Volumes shall collectively be referred to as
the “Termination Date Volumes”.

     (e) Aron shall promptly reconcile and determine the Termination Amount pursuant
to Section 19.2. The Parties shall promptly exchange all information necessary to
determine the estimates and final calculations contemplated by Section 19.2.

     (f) Aron shall have no further obligation to purchase and shall not purchase or
pay for Crude Oil or Products, or incur any such purchase obligations on and after
the Termination Date. Except as may be required for Aron to fulfill its obligations
hereunder until the Termination Date or during any obligatory notice period pursuant
to any Procurement Contract, Aron shall not be obligated to purchase, take title to
or pay for any Crude Oil or Products following the Termination Date or such earlier
date as the Parties may determine in connection with the transitioning of such
supply arrangements to the Company. Notwithstanding anything to the contrary
herein, no Delivery Date shall occur later than the calendar day immediately
preceding the Termination Date.

     19.2 Termination Amount.

     (a) The “Termination Amount” shall equal:

54

 

          (i) the Termination Date Purchase Value, which is the aggregate amount payable to Aron under
the Step-Out Inventory Sales Agreement, plus

          (ii) all unpaid amounts payable hereunder by the Company to Aron in respect of Crude Oil
delivered on or prior to the Termination Date, plus

          (iii) all Ancillary Costs incurred through the Termination Date that have not yet been paid or
reimbursed by the Company, plus

          (iv) in the case of an agreed early termination, the amount reasonably determined by Aron as
the breakage costs it incurred in connection with the termination, unwinding or redeploying of all
Related Hedges as a result of such early termination, plus

          (v) the aggregate amount due under Section 10.2(a) hereof, calculated as of the Termination
Date with such date being the final day of the last monthly period for which such calculations are
to be made under this Agreement; provided that, if such amount under Section 10.2(a) is due to
Aron, then such amount will be included in this Termination Amount as a positive number and if such
amount under Section 10.2(a) is due to the Company, then such amount will be included in this
Termination Amount as a negative number;

          (vi) any FIFO Balance Final Settlement that is determined to be due pursuant to Schedule N
hereto; provided that, if such FIFO Balance Final Settlement is due to Aron, then such amount will
be included in this Termination Amount as a positive number and if such amount under Section
10.2(a) would be due to the Company, then such amount will be included in this Termination Amount
as a negative number;

          (vii) all unpaid amounts payable hereunder by Aron to the Company in respect of Product
delivered on or prior to the Termination Date, minus

          (viii) all amounts due from Aron to the Company under the Marketing and Sales Agreement for
services provided up to the Termination Date, minus

          (ix) the amount of the Deferred Portion.

All of the foregoing amounts shall be aggregated or netted to a single liquidated amount owing from
one Party to the other. If the Termination Amount is a positive number, it shall be due to Aron
and if it is a negative number, the absolute value thereof shall be due to the Company.

     (b) The Parties acknowledge that one or more of the components of the
Termination Amount will not able to be definitively determined by the Termination
Date and therefore agree that Aron shall, in a commercially reasonable manner,
estimate each of such components and use such estimated components to determine an
estimate of the Termination Amount (the “Estimated Termination Amount”) plus
such additional amount which Aron shall reasonably determine (the “Termination
Holdback Amount”); provided that the Termination Holdback Amount shall not
exceed the Deferred Portion and shall be added to the Estimated Termination Amount
as an amount due to Aron. Without limiting the generality of the foregoing, the
Parties agree that the amount due under Section

55

 

19.2(a)(i) above shall be estimated by Aron in the same manner and using the
same methodology as it used in preparing the Estimated Commencement Date Value, but
applying the Step-Out Prices as indicated on Schedule B hereto and other price terms
provided for herein with respect to the purchase of the Termination Date Volumes.
Aron shall use its commercially reasonable efforts to prepare, and provide the
Company with, an initial Estimated Termination Amount, together with appropriate
supporting documentation, at least five (5) Business Days prior to the Termination
Date. To the extent reasonably practicable, Aron shall endeavor to update its
calculation of the Estimated Termination Amount by no later than 12:00 noon CPT on
the Business Day prior to the Termination Date. If Aron is able to provide such
updated amount, that amount shall constitute the Estimated Termination Amount and
shall be due and payable by no later than 5:00 p.m. CPT on the Business Day
preceding the Termination Date. Otherwise, the initial Estimated Termination Amount
shall be the amount payable on the Termination Date. If the Estimated Termination
Amount is a positive number, it shall be due to Aron and if it is a negative number,
the absolute value thereof shall be due to the Company.

     (c) Aron shall prepare, and provide the Company with, (i) a statement showing
the calculation, as of the Termination Date, of the Termination Amount, (ii) a
statement (the “Termination Reconciliation Statement”) reconciling the
Termination Amount with the sum of the Estimated Termination Amount pursuant to
Section 19.2(b) and the Termination Holdback Amount and indicating any amount
remaining to be paid by one party to the other as a result of such reconciliation.
Within one (1) Business Day after receiving the Termination Reconciliation Statement
and the related supporting documentation, the Parties will make any and all payments
required pursuant thereto. Promptly after receiving such payment, Aron shall cause
any filing or recording of any Uniform Commercial Code financing forms to be
terminated.

     19.3 Transition Services. To the extent necessary to facilitate the transition to the
Purchasers of the storage and transportation rights and status contemplated hereby, each Party
shall take such additional actions, execute such further instruments and provide such additional
assistance as the other Party may from time to time reasonably request for such purposes.

ARTICLE 20

INDEMNIFICATION

     20.1 To the fullest extent permitted by Applicable Law and except as specified otherwise
elsewhere in the Transaction Documents, Aron shall defend, indemnify and hold harmless the Company,
its Affiliates, and their directors, officers, employees, representatives, agents and contractors
for and against any Liabilities directly or indirectly arising out of (i) any breach by Aron of any
covenant or agreement contained herein or made in connection herewith or any representation or
warranty of Aron made herein or in connection herewith proving to be false or misleading, (ii) any
failure by Aron to comply with or observe any Applicable Law, (iii) Aron’s negligence or willful
misconduct, or (iv) injury, disease, or death of any person or

56

 

damage to or loss of any property, fine or penalty, any of which is caused by Aron or its
employees, representatives, agents or contractors in exercising any rights or performing any
obligations hereunder or in connection herewith, except to the extent that such injury, disease,
death, or damage to or loss of property was caused by the negligence or willful misconduct on the
part of the Company, its Affiliates or any of their respective employees, representatives, agents
or contractors.

     20.2 To the fullest extent permitted by Applicable Law and except as specified otherwise
elsewhere in this Agreement, the Company shall defend, indemnify and hold harmless Aron, its
Affiliates, and their directors, officers, employees, representatives, agents and contractors for
and against any Liabilities directly or indirectly arising out of (i) any breach by the Company of
any covenant or agreement contained herein or made in connection herewith or any representation or
warranty of the Company made herein or in connection herewith proving to be false or misleading,
including, without limitation the Company’s obligation for payment of taxes pursuant to Section
14.1, (ii) the Company’s transportation, handling, storage, refining or disposal of any Crude Oil
or the products thereof, (iii) the Company’s negligence or willful misconduct, (iv) any failure by
the Company to comply with or observe any Applicable Law, or (v) injury, disease, or death of any
person or damage to or loss of any property, fine or penalty, any of which is caused by the Company
or its employees, representatives, agents or contractors in exercising any rights or performing any
obligations hereunder or in connection herewith, except to the extent that such injury, disease,
death, or damage to or loss of property was caused by the negligence or willful misconduct on the
part of Aron, its Affiliates or any of their respective employees, representatives, agents or
contractors.

     20.3 The Parties’ obligations to defend, indemnify, and hold each other harmless under the
terms of the Transaction Documents shall not vest any rights in any third party (whether a
Governmental Authority or private entity), nor shall they be considered an admission of liability
or responsibility for any purposes other than those enumerated in the Transaction Documents.

     20.4 Each Party agrees to notify the other as soon as practicable after receiving notice of
any claim or suit brought against it within the indemnities of this Agreement, shall furnish to the
other the complete details within its knowledge and shall render all reasonable assistance
requested by the other in the defense; provided, that, the failure to give such notice shall not
affect the indemnification provided hereunder, except to the extent that the indemnifying Party is
materially adversely affected by such failure. Each Party shall have the right but not the duty to
participate, at its own expense, with counsel of its own selection, in the defense and settlement
thereof without relieving the other of any obligations hereunder. Notwithstanding the foregoing,
an indemnifying Party shall not be entitled to assume responsibility for and control of any
judicial or administrative proceeding if such proceeding involves an Event of Default by the
indemnifying Party under this Agreement which shall have occurred and be continuing.

ARTICLE 21

LIMITATION ON DAMAGES

Unless otherwise expressly provided in this Agreement, the Parties’ liability for damages is
limited to direct, actual damages only (which include any amounts determined under Article
18)

57

 

and neither Party shall be liable for specific performance, lost profits or other business
interruption damages, or special, consequential, incidental, punitive, exemplary or indirect
damages, in tort, contract or otherwise, of any kind, arising out of or in any way connected with
the performance, the suspension of performance, the failure to perform, or the termination of this
Agreement; provided, however, that, such limitation shall not apply with respect to (i) any third
party claim for which indemnification is available under this Agreement or (ii) any breach of
Article 23. Each Party acknowledges the duty to mitigate damages hereunder.

ARTICLE 22

AUDIT AND INSPECTION

     22.1 During the Term of this Agreement each Party and its duly authorized representatives,
upon reasonable notice and during normal working hours, shall have access to the accounting records
and other documents maintained by the other Party, or any of the other Party’s contractors and
agents, which relate to this Agreement; provided, that, neither this Section nor any other
provision hereof shall entitle the Company to have access to any records concerning any hedges or
offsetting transactions or other trading positions or pricing information that may have been
entered into with other parties or utilized in connection with any transactions contemplated hereby
or by any other Transaction Document. The right to inspect or audit such records shall survive
termination of this Agreement for a period of two (2) years following the later of the Termination
Date. Each Party shall preserve, and shall cause all contractors or agents to preserve, all of the
aforesaid documents for a period of at least two (2) years from the Termination Date.

ARTICLE 23

CONFIDENTIALITY

     23.1 In addition to the Company’s confidentiality obligations under the Transaction Documents,
the Parties agree that the specific terms and conditions of this Agreement including any list of
counterparties, the Transaction Documents and the drafts of this Agreement exchanged by the Parties
and any information exchanged between the Parties, including calculations of any fees or other
amounts paid by the Company to Aron under this Agreement and all information received by Aron from
the Company relating to the costs of operation, operating conditions, and other commercial
information of the Company not made available to the public, are confidential and shall not be
disclosed to any third party, except (i) as may be required by court order or Applicable Laws or as
requested by a Governmental Authority, (ii) to such Party’s or its Affiliates’ employees,
directors, shareholders, auditors, consultants, banks, lenders, financial advisors and legal
advisors, or (iii) to such Party’ insurance providers, solely for the purpose of procuring
insurance coverage or confirming the extent of existing insurance coverage; provided, that, prior
to any disclosure permitted by this clause (iii), such insurance providers shall have agreed in
writing to keep confidential any information or document subject to this Section. The
confidentiality obligations under this Agreement shall survive termination of this Agreement for a
period of two (2) years following the Termination Date. The Parties shall be entitled to all
remedies available at law, or in equity, to enforce or seek relief in connection with the
confidentiality obligations contained herein.

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     23.2 In the case of disclosure covered by clause (i) of Section 23.1, to the extent
practicable and in conformance with the relevant court order, Applicable Law or request, the
disclosing Party shall notify the other Party in writing of any proceeding of which it is aware
which may result in disclosure.

     23.3 Tax Disclosure. Notwithstanding anything herein to the contrary, the Parties
(and their respective employees, representatives or other agents) are authorized to disclose to any
person the U.S. federal and state income tax treatment and tax structure of the transaction and all
materials of any kind (including tax opinions and other tax analyses) that are provided to the
Parties relating to that treatment and structure, without the Parties imposing any limitation of
any kind. However, any information relating to the tax treatment and tax structure shall remain
confidential (and the foregoing sentence shall not apply) to the extent necessary to enable any
person to comply with securities laws. For this purpose, “tax structure” is limited to any facts
that may be relevant to that treatment.

ARTICLE 24

GOVERNING LAW

     24.1 This Agreement shall be governed by, construed and enforced under the laws of the State
of New York without giving effect to its conflicts of laws principles that would require the
application of the laws of another state.

     24.2 Each of the Parties hereby irrevocably submits to the exclusive jurisdiction of any
federal or state court of competent jurisdiction situated in the City of New York, (without
recourse to arbitration unless both Parties agree in writing), and to service of process by
certified mail, delivered to the Party at the address indicated in Article 26. Each Party
hereby irrevocably waives, to the fullest extent permitted by Applicable Law, any objection to
personal jurisdiction, whether on grounds of venue, residence or domicile.

     24.3 Each party waives, to the fullest extent permitted by applicable law, any right it may
have to a trial by jury in respect of any proceedings relating to this agreement.

ARTICLE 25

ASSIGNMENT

     25.1 This Agreement shall inure to the benefit of and be binding upon the Parties hereto,
their respective successors and permitted assigns.

     25.2 The Company shall not assign this Agreement or its rights or interests hereunder in whole
or in part, or delegate its obligations hereunder in whole or in part, without the express written
consent of Aron. Aron may, without the Company’s consent, assign and delegate all of Aron’s rights
and obligations hereunder to (i) any Affiliate of Aron, provided that the obligations of such
Affiliate hereunder are guaranteed by The Goldman Sachs Group, Inc. or (ii) any non-Affiliate
Person that succeeds to all or substantially all of its assets and business and assumes the Aron’s
obligations hereunder, whether by contract, operation of law or otherwise, provided that the
creditworthiness of such successor entity is equal or superior to the creditworthiness of Aron

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immediately prior to such assignment. Any other assignment by Aron shall require the
Company’s consent.

     25.3 Any attempted assignment in violation of this Article 26 shall be null and void
ab initio and the non-assigning Party shall have the right, without prejudice to any other rights
or remedies it may have hereunder or otherwise, to terminate this Agreement effective immediately
upon notice to the Party attempting such assignment.

ARTICLE 26

NOTICES

     26.1 All invoices, notices, requests and other communications given pursuant to this Agreement
shall be in writing and sent by email or nationally recognized overnight courier. A notice shall
be deemed to have been received when transmitted by email to the other Party’s email set forth in
Schedule M, or on the following Business Day if sent by nationally recognized overnight courier to
the other Party’s address set forth in Schedule M and to the attention of the person or department
indicated. A Party may change its address or email address by giving written notice in accordance
with this Section, which is effective upon receipt.

ARTICLE 27

NO WAIVER, CUMULATIVE REMEDIES

     27.1 The failure of a Party hereunder to assert a right or enforce an obligation of the other
Party shall not be deemed a waiver of such right or obligation. The waiver by any Party of a
breach of any provision of, or Event of Default or Potential Event of Default under, this Agreement
shall not operate or be construed as a waiver of any other breach of that provision or as a waiver
of any breach of another provision of, Event of Default or Potential Event of Default under, this
Agreement, whether of a like kind or different nature.

     27.2 Each and every right granted to the Parties under this Agreement or allowed it by law or
equity shall be cumulative and may be exercised from time to time in accordance with the terms
thereof and Applicable Law.

ARTICLE 28

NATURE OF THE TRANSACTION AND RELATIONSHIP OF PARTIES

     28.1 This Agreement shall not be construed as creating a partnership, association or joint
venture between the Parties. It is understood that each Party is an independent contractor with
complete charge of its employees and agents in the performance of its duties hereunder, and nothing
herein shall be construed to make such Party, or any employee or agent of the Company, an agent or
employee of the other Party.

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     28.2 Neither Party shall have the right or authority to negotiate, conclude or execute any
contract or legal document with any third person; to assume, create, or incur any liability of any
kind, express or implied, against or in the name of the other; or to otherwise act as the
representative of the other, unless expressly authorized in writing by the other.

ARTICLE 29

MISCELLANEOUS

     29.1 If any Article, Section or provision of this Agreement shall be determined to be null and
void, voidable or invalid by a court of competent jurisdiction, then for such period that the same
is void or invalid, it shall be deemed to be deleted from this Agreement and the remaining portions
of this Agreement shall remain in full force and effect.

     29.2 The terms of this Agreement constitute the entire agreement between the Parties with
respect to the matters set forth in this Agreement, and no representations or warranties shall be
implied or provisions added in the absence of a written agreement to such effect between the
Parties. This Agreement shall not be modified or changed except by written instrument executed by
the Parties’ duly authorized representatives.

     29.3 No promise, representation or inducement has been made by either Party that is not
embodied in this Agreement or the Temporary Assignment, and neither Party shall be bound by or
liable for any alleged representation, promise or inducement not so set forth.

     29.4 Time is of the essence with respect to all aspects of each Party’s performance of any
obligations under this Agreement.

     29.5 Nothing expressed or implied in this Agreement is intended to create any rights,
obligations or benefits under this Agreement in any person other than the Parties and their
successors and permitted assigns.

     29.6 All audit rights, payment, confidentiality and indemnification obligations and
obligations under this Agreement shall survive the expiration or termination of this Agreement.

     29.7 This Agreement may be executed by the Parties in separate counterparts and initially
delivered by facsimile transmission or otherwise, with original signature pages to follow, and all
such counterparts shall together constitute one and the same instrument.

     29.8 All transactions hereunder are entered into in reliance on the fact this Agreement and
all such transactions constitute a single integrated agreement between the Parties, and the Parties
would not have otherwise entered into any other transactions hereunder.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, each Party hereto has caused this Agreement to be executed by its duly
authorized representative as of the date first above written.

	 	 	 	 	 
	J. ARON & COMPANY

 	 
	By:  	/s/ Colleen Foster
 	 
	 	Name:  	Colleen Foster 	 
	 	Title:  	Managing Director 	 
	 
	ALON REFINING KROTZ SPRINGS, INC.

 	 
	By:  	/s/ Shai Even
 	 
	 	Name:  	Shai Even 	 
	 	Title:  	SVP & CFO

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