Document:

Exhibit 10.5

Exhibit 10.5

EXECUTION COPY

FINANCING AGREEMENT

Dated as of April 29, 2011

by and among

LION OIL COMPANY,

as the Borrower,

AND EACH SUBSIDIARY OF LION OIL COMPANY LISTED AS A GUARANTOR

ON THE SIGNATURE PAGES HERETO,

as Guarantors,

THE LENDERS FROM TIME TO TIME PARTY HERETO,

as Lenders,

and

BANK LEUMI USA,

as the Collateral Agent,

$100,000,000 TERM LOAN CREDIT FACILITY

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I DEFINITIONS; CERTAIN TERMS
	 	 	1	 
	Section 1.01 Definitions
	 	 	1	 
	Section 1.02 Terms Generally
	 	 	18	 
	Section 1.03 Accounting and Other Terms
	 	 	18	 
	Section 1.04 Time References
	 	 	18	 
	 
	 	 	 	 
	ARTICLE II THE LOANS
	 	 	18	 
	Section 2.01 Commitments
	 	 	18	 
	Section 2.02 Making the Loans
	 	 	18	 
	Section 2.03 Repayment of Loans; Evidence of Debt
	 	 	19	 
	Section 2.04 Interest
	 	 	19	 
	Section 2.05 Reduction of Commitment; Prepayment of Loans
	 	 	20	 
	Section 2.06 Fees
	 	 	21	 
	Section 2.07 Taxes
	 	 	21	 
	Section 2.08 Continuation and Conversion of Loans
	 	 	22	 
	Section 2.09 Funding Losses
	 	 	23	 
	Section 2.10 Increased Costs and Reduced Return
	 	 	23	 
	Section 2.11 LIBOR Not Determinable; Impracticability or Illegality 
	 	 	24	 
	 
	 	 	 	 
	ARTICLE III FEES, PAYMENTS AND OTHER COMPENSATION
	 	 	25	 
	Section 3.01 Payments; Computations and Statements
	 	 	25	 
	Section 3.02 Sharing of Payments, Etc.
	 	 	25	 
	Section 3.03 Apportionment of Payments
	 	 	25	 
	 
	 	 	 	 
	ARTICLE IV CONDITIONS TO LOANS
	 	 	26	 
	Section 4.01 Conditions Precedent to Effectiveness
	 	 	26	 
	 
	 	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES
	 	 	27	 
	Section 5.01 Representations and Warranties
	 	 	27	 
	 
	 	 	 	 
	ARTICLE VI COVENANTS OF THE LOAN PARTIES
	 	 	31	 
	Section 6.01 Affirmative Covenants
	 	 	31	 
	Section 6.02 Negative Covenants
	 	 	37	 
	 
	 	 	 	 
	ARTICLE VII EVENTS OF DEFAULT
	 	 	42	 
	Section 7.01 Events of Default
	 	 	42	 
	 
	 	 	 	 
	ARTICLE VIII COLLATERAL AGENT
	 	 	45	 
	Section 8.01 Appointment
	 	 	45	 
	Section 8.02 Nature of Duties
	 	 	45	 
	Section 8.03 Rights, Exculpation, Etc.
	 	 	46	 
	Section 8.04 Reliance
	 	 	46	 
	Section 8.05 Indemnification
	 	 	47	 
	Section 8.06 Agents Individually
	 	 	47	 
	Section 8.07 Successor Agent
	 	 	47	 
	Section 8.08 Collateral Matters
	 	 	47	 
	Section 8.09 Agency for Perfection
	 	 	48	 
	 
	 	 	 	 
	ARTICLE IX GUARANTY
	 	 	48	 
	Section 9.01 Guaranty
	 	 	48	 
	Section 9.02 Guaranty Absolute
	 	 	49	 
	Section 9.03 Waiver
	 	 	49	 
	Section 9.04 Continuing Guaranty; Assignments
	 	 	50	 
	Section 9.05 Subrogation
	 	 	50	 

 

 

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE X MISCELLANEOUS
	 	 	50	 
	Section 10.01 Notices, Etc.
	 	 	50	 
	Section 10.02 Amendments, Etc.
	 	 	51	 
	Section 10.03 No Waiver; Remedies, Etc.
	 	 	51	 
	Section 10.04 Expenses; Taxes; Attorneys’ Fees
	 	 	52	 
	Section 10.05 Right of Set-off
	 	 	52	 
	Section 10.06 Severability
	 	 	53	 
	Section 10.07 Assignments and Participations
	 	 	53	 
	Section 10.08 Counterparts
	 	 	54	 
	Section 10.09 GOVERNING LAW
	 	 	54	 
	Section 10.10 CONSENT TO JURISDICTION; SERVICE OF PROCESS AND VENUE
	 	 	54	 
	Section 10.11 WAIVER OF JURY TRIAL, ETC.
	 	 	55	 
	Section 10.12 Consent by the Collateral Agent and Lenders
	 	 	55	 
	Section 10.13 No Party Deemed Drafter
	 	 	55	 
	Section 10.14 Reinstatement; Certain Payments
	 	 	55	 
	Section 10.15 Indemnification
	 	 	56	 
	Section 10.16 Records
	 	 	56	 
	Section 10.17 Binding Effect
	 	 	57	 
	Section 10.18 Interest
	 	 	57	 
	Section 10.19 Confidentiality
	 	 	57	 
	Section 10.20 Integration
	 	 	57	 

 

 

 

SCHEDULE AND EXHIBITS

	 	 	 
	Schedule 1.01(A)	 	Lenders and Lenders’ Commitments

	Schedule 5.01(e)	 	Capitalization; Subsidiaries

	Schedule 5.01(f)	 	Litigation; Commercial Tort Claims

	Schedule 5.01(o)	 	Real Property

	Schedule 5.01(q)	 	Environmental Matters

	Schedule 6.01(o)	 	Post Closing Matters

	Schedule 6.02(a)	 	Existing Liens

	Schedule 6.02(b)	 	Existing Indebtedness

	Schedule 6.02(e)	 	Existing Investments

	 	 	 

	Exhibit A	 	Form of Notice of Borrowing

	Exhibit B	 	Form of LIBOR Notice

	Exhibit C	 	Form of Assignment and Acceptance

	Exhibit D	 	Form of Term Note

 

 

 

FINANCING AGREEMENT

Financing Agreement, dated as of April 29, 2011, by and among Lion Oil Company, an Arkansas
corporation (the “Borrower”), each subsidiary of the Borrower listed as a
“Guarantor” on the signature pages hereto (each a “Guarantor” and collectively, the
“Guarantors”), Bank Hapoalim B.M. (“Hapoalim”), Bank Leumi USA (“BLUSA”),
Israel Discount Bank of New York (“IDB”; together with Hapoalim and BLUSA, each a
“Lender” and collectively, the “Lenders”), and BLUSA, in its capacity as collateral
agent for the Lenders (in such capacity, the “Collateral Agent”).

RECITALS

The Borrower has asked the Lenders to extend credit to the Borrower consisting of (a) a term
loan in the aggregate principal amount of $100,000,000. The proceeds of the term loan shall be
used to refinance existing indebtedness of the Borrower, for general working capital and corporate
purposes of the Borrower and to pay fees and expenses related to this Agreement. The Lenders are
severally, and not jointly, willing to extend such credit to the Borrower, subject to the terms and
conditions hereinafter set forth.

In consideration of the premises and the covenants and agreements contained herein, the
parties hereto agree as follows:

ARTICLE I

DEFINITIONS; CERTAIN TERMS

Section 1.01 Definitions. As used in this Agreement, the following terms shall have
the respective meanings indicated below, such meanings to be applicable equally to both the
singular and plural forms of such terms:

“2014 Turnaround” means the Turnaround with respect to the El Dorado refinery of the
Loan Parties planned to occur during the calendar year commencing January 1, 2014.

“Accounts Receivable” means any accounts arising from the sale of inventory in the
ordinary course of business.

“Acquisition” means the acquisition by the Parent of 4,450,000 shares of common stock,
par value $0.10 per share, or the Borrower, constituting 53.7% of the issued and outstanding shares
of common stock of the Borrower, from the Seller pursuant to the Acquisition Agreement.

“Acquisition Agreement” means the Stock Purchase Agreement, dated March 17, 2011, by
and among the Seller, the Borrower and the Parent, as in effect on the date hereof.

“Acquisition Assets” means all of the property and assets (tangible and intangible)
proposed to be purchased by the Parent pursuant to the Acquisition Agreement.

“Acquisition Documents” means the Acquisition Agreement and the Related Agreements (as
defined in the Acquisition Agreement as in effect on the date hereof).

“Action” has the meaning specified therefor in Section 10.12.

“additional amount” has the meaning specified therefor in Section 2.07(a).

“Affiliate” means, with respect to any Person, any other Person that directly or
indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with, such Person. For purposes of this definition, “control” of a Person means the power,
directly or indirectly, either to (i) vote 10% or more of the Capital Stock having ordinary voting
power for the election of directors of such Person or (ii) direct or cause the direction of the
management and policies of such Person whether by contract or otherwise. Notwithstanding
anything herein to the contrary, in no event shall the Collateral Agent or any Lender be considered
an “Affiliate” of any Loan Party.

 

 

 

“After Acquired Property” has the meaning specified therefor in Section 6.01(l).

“Agreement” means this Financing Agreement, including all amendments, modifications
and supplements and any exhibits or schedules to any of the foregoing, and shall refer to the
Agreement as the same may be in effect at the time such reference becomes operative.

“Applicable Margin” means, (a) with respect to Reference Rate Loans, 3.50%, and (b)
with respect to LIBOR Rate Loans, 4.50%.

“Applicable Prepayment Premium” means, as of any date of determination, an amount
equal to (a) during the period of time from and after the Effective Date up to and including the
date that is the first anniversary of the Effective Date, an amount equal to 3% times the
principal amount of any prepayment of the Term Loan on such date, (b) during the period of time
after the date that is the first anniversary of the Effective Date up to and including the date
that is the second anniversary of the Effective Date, an amount equal to 2% times the
principal amount of any prepayment of the Term Loan on such date, (c) during the period of time
after the date that is the second anniversary of the Effective Date up to and including the date
that is the third anniversary of the Effective Date, an amount equal to 1% times the
principal amount of any prepayment of the Term Loan on such date, and (d) thereafter, zero.

“Appraisal” means an appraisal of the Specified Fixed Asset Collateral (including the
equipment and any Real Property Collateral) performed by a qualified independent appraiser
acceptable to the Required Lenders, in form and substance satisfactory to the Required Lenders

“Appraised Value” means the net orderly liquidation value (net of liquidation
expenses) of any equipment (as defined in the Uniform Commercial Code), real property and other
fixed assets, in each case constituting Specified Fixed Asset Collateral, such value to be
determined based on the most recent Appraisal thereof received by the Lenders.

“AR Guaranty” means the Limited Recourse General Continuing Guaranty dated as of April
29, 2011, by the Borrower in favor of Wells Fargo Capital Finance, LLC, in respect of the
obligations of Delek Refining, Ltd.

“Assignment and Acceptance” means an assignment and acceptance entered into by an
assigning Lender and an assignee, in accordance with Section 10.07 hereof and substantially in the
form of Exhibit C hereto or such other form acceptable to the Required Lenders.

“Authorized Officer” means, with respect to any Person, the chief executive officer,
chief financial officer, president or executive vice president of such Person.

“Bankruptcy Code” means the United States Bankruptcy Code (11 U.S.C. § 101, et
seq.), as amended, and any successor statute.

“Board” means the Board of Governors of the Federal Reserve System of the United
States.

“Board of Directors” means, (a) with respect to any corporation, the board of
directors of the corporation or any committee thereof duly authorized to act on behalf of such
board, (b) with respect to a partnership, the board of directors of the general partner of the
partnership, (c) with respect to a limited liability company, the managing member or members or any
controlling committee or board of directors of such company or the sole member or the managing
member thereof, and (d) with respect to any other Person, the board or committee of such Person
serving a similar function.

“Borrower” has the meaning specified therefor in the preamble hereto.

 

2

 

“Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required to close.

“Capital Expenditures” means, with respect to any Person for any period, the sum of
(i) the aggregate of all expenditures by such Person and its Subsidiaries during such period that
in accordance with GAAP are or should be included in “property, plant and equipment” or in a
similar fixed asset account on its balance sheet, whether such expenditures are paid in cash or
financed and including all Capitalized Lease Obligations paid or payable during such period, and
(ii) to the extent not covered by clause (i) above, the aggregate of all expenditures by such
Person and its Subsidiaries during such period to acquire by purchase or otherwise the business or
fixed assets of, or the Capital Stock of, any other Person.

“Capital Stock” means (i) with respect to any Person that is a corporation, any and
all shares, interests, participations or other equivalents (however designated and whether or not
voting) of corporate stock, and (ii) with respect to any Person that is not a corporation, any and
all partnership, membership or other equity interests of such Person.

“Capitalized Lease” means, with respect to any Person, any lease of real or personal
property by such Person as lessee which is (i) required under GAAP to be capitalized on the balance
sheet of such Person or (ii) a transaction of a type commonly known as a “synthetic lease” (i.e. a
lease transaction that is treated as an operating lease for accounting purposes but with respect to
which payments of rent are intended to be treated as payments of principal and interest on a loan
for Federal income tax purposes).

“Capitalized Lease Obligations” means, with respect to any Person, obligations of such
Person and its Subsidiaries under Capitalized Leases, and, for purposes hereof, the amount of any
such obligation shall be the capitalized amount thereof determined in accordance with GAAP.

“Cash and Cash Equivalents” means all cash and any presently existing or hereafter
arising deposit account balances, certificates of deposit or other financial instruments properly
classified as cash equivalents under GAAP.

“Casualty Event” means any event that gives rise to the receipt by any Loan Party of
any insurance proceeds or condemnation awards in respect of any real property, fixed assets or
equipment (including any improvements thereon) or other assets the restoration, repairing,
replacement or rebuilding of which would constitute a Capital Expenditure to restore, repair,
replace or rebuild such real property, fixed assets or equipment or other assets.

“Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any Requirement of Law, (b) any change in any
Requirement of Law or in the administration, interpretation, implementation or application thereof
by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or
directive (whether or not having the force of law) by any Governmental Authority; provided
that notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and
Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in
connection therewith and (ii) all requests, rules, guidelines or directives promulgated by the Bank
for International Settlements, the Basel Committee on Banking Supervision (or any successor or
similar authority) or the United States or foreign regulatory authorities, in each case, pursuant
to Basel III, shall, in each case, be deemed to be a “Change in Law”, regardless of the date
enacted, adopted or issued.

“Change of Control” means the occurrence of any of the following events: (a) the
Permitted Investors shall cease to own and control, of record and beneficially, directly or
indirectly, at least 51% of each class of outstanding Capital Stock of the Parent; (b) the Board of
Directors of the Parent shall cease to consist of a majority of Continuing Directors; (c) the
Parent shall cease to own and control, of record and beneficially, directly, at least 85% of each
class of outstanding Capital Stock of the Borrower free and clear of all Liens (except Liens
created by a Loan Document); and (d) the Borrower shall cease to own and control, of record and
beneficially, directly, 100% of each class of outstanding Capital Stock of each of its Subsidiaries
free and clear of all Liens (except Liens created by a Loan Document).

 

3

 

“Closing Fee” has the meaning specified therefor in Section 2.06(a).

“Collateral” means all of the property and assets and all interests therein and
proceeds thereof now owned or hereafter acquired by any Person upon which a Lien is granted or
purported to be granted by such Person as security for all or any part of the Obligations.

“Collateral Agent” has the meaning specified therefor in the preamble hereto.

“Commitments” means, with respect to each Lender, such Lender’s Term Loan Commitment.

“Contingent Obligation” means, with respect to any Person, any obligation of such
Person guaranteeing or intended to guarantee any Indebtedness, leases, dividends or other
obligations (“primary obligations”) of any other Person (the “primary obligor”) in any manner,
whether directly or indirectly, including, without limitation, (i) the direct or indirect guaranty,
endorsement (other than for collection or deposit in the ordinary course of business), co-making,
discounting with recourse or sale with recourse by such Person of the obligation of a primary
obligor, (ii) the obligation to make take-or-pay or similar payments, if required, regardless of
nonperformance by any other party or parties to an agreement, (iii) any obligation of such Person,
whether or not contingent, (A) to purchase any such primary obligation or any property constituting
direct or indirect security therefor, (B) to advance or supply funds (1) for the purchase or
payment of any such primary obligation or (2) to maintain working capital or equity capital of the
primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (C) to
purchase property, assets, securities or services primarily for the purpose of assuring the owner
of any such primary obligation of the ability of the primary obligor to make payment of such
primary obligation or (D) otherwise to assure or hold harmless the holder of such primary
obligation against loss in respect thereof; provided, however, that the term
“Contingent Obligation” shall not include any product warranties extended in the ordinary course of
business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the
stated or determinable amount of the primary obligation with respect to which such Contingent
Obligation is made (or, if less, the maximum amount of such primary obligation for which such
Person may be liable pursuant to the terms of the instrument evidencing such Contingent Obligation)
or, if not stated or determinable, the maximum reasonably anticipated liability with respect
thereto (assuming such Person is required to perform thereunder), as determined by such Person in
good faith.

“Continuing Directors” means the directors of the Parent on the Effective Date and
each other director of the Parent, if, in each case, such other director’s nomination for election
to the Board of Directors of the Parent is recommended by at least 60% of the then Continuing
Directors or such other director receives the vote of the Permitted Investors in his or her
election by the shareholders of the Parent.

“Contractual Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, instrument or other undertaking to which such Person is a party
or by which it or any of its property is bound.

“Control Agreement” means a control agreement, in form and substance reasonably
satisfactory to the Lenders and the Collateral Agent, executed and delivered by the applicable Loan
Party, the Collateral Agent, and the securities intermediary with respect to a securities account
or a bank with respect to a deposit account.

“Control Investment Affiliate” means as to any Person, any other Person that (a)
directly or indirectly, is in control of, is controlled by, or is under common control with, such
Person and (b) is organized by such Person primarily for the purpose of making equity or debt
investments in one or more companies. For purposes of this definition, “control” of a Person means
the power, directly or indirectly, to direct or cause the direction of the management and policies
of such Person, whether by contract or otherwise.

“Credit Parties” means the Borrower, the Subsidiary Guarantors and the Parent.

“Current Value” has the meaning specified therefor in Section 6.01(l).

“Default” means an event which, with the giving of notice or the lapse of time or
both, would constitute an Event of Default.

 

4

 

“Disposition” means any transaction, or series of related transactions, pursuant to
which any Person or any of its Subsidiaries sells, assigns, transfers or otherwise disposes of any
property or assets (whether now owned or hereafter acquired) to any other Person, in each case,
whether or not the consideration therefor consists of cash, securities or other assets owned by the
acquiring Person, excluding any sales of inventory in the ordinary course of business on
ordinary business terms and Accounts Receivable arising from such sales of inventory.

“Disqualified Capital Stock” means any Capital Stock that, by its terms (or by the
terms of any security or other Capital Stock into which it is convertible or for which it is
exchangeable), or upon the happening of any event or condition (i) matures (excluding any maturity
as the result of an optional redemption by the issuer thereof) or is mandatorily redeemable (other
than solely for Capital Stock that is not otherwise Disqualified Capital Stock), pursuant to a
sinking fund obligation or otherwise, (ii) is redeemable at the option of the holder thereof (other
than solely for Capital Stock which is not otherwise Disqualified Capital Stocks), in whole or in
part, (iii) provides for scheduled payments or dividends in cash, (iv) contains any repurchase
obligation that may come into effect prior to payment in full of all Obligations, or (v) is or
becomes convertible into or exchangeable for Indebtedness or any other Capital Stocks that would
constitute Disqualified Capital Stocks, in each case, prior to the date that is one year after the
Final Maturity Date.

“Dollar,” “Dollars” and the symbol “$” each means lawful money of the
United States of America.

“Effective Date” means the date, on or before April 29, 2011, on which all of the
conditions precedent set forth in Section 4.01 are satisfied or waived and the initial Loans are
made.

“Employee Plan” means an employee benefit plan (other than a Multiemployer Plan)
covered by Title IV of ERISA and maintained (or that was maintained at any time during the six (6)
calendar years preceding the date of any borrowing hereunder) for employees of any Loan Party or
any of its ERISA Affiliates.

“Environmental Actions” means any written complaint, summons, citation, notice,
directive, order, claim, litigation, investigation, judicial or administrative proceeding,
judgment, letter or other written communication from any Person or Governmental Authority involving
violations of Environmental Laws or Releases of Hazardous Materials (i) from any assets, properties
or businesses owned or operated by any Loan Party or any of its Subsidiaries or any of their
predecessors in interest; (ii) from adjoining properties or businesses; or (iii) onto any
facilities which received Hazardous Materials generated by any Loan Party or any of its
Subsidiaries or any of their predecessors in interest.

“Environmental Laws” means the Comprehensive Environmental Response, Compensation and
Liability Act (42 U.S.C. § 9601, et seq.), the Hazardous Materials Transportation
Act (49 U.S.C. § 1801, et seq.), the Resource Conservation and Recovery Act (42
U.S.C. § 6901, et seq.), the Federal Clean Water Act (33 U.S.C. § 1251 et
seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Toxic Substances
Control Act (15 U.S.C. § 2601 et seq.) and the Occupational Safety and Health Act
(29 U.S.C. § 651 et seq.), as such laws may be amended or otherwise modified from
time to time, and any other present or future federal, state, local or foreign statute, ordinance,
rule, regulation, order, judgment, decree, permit, license or other legally binding determination
of any Governmental Authority imposing liability or establishing standards of conduct for
protection of the environment or other government restrictions relating to the protection of the
environment or the Release, deposit or migration of any Hazardous Materials into the environment,
which are applicable to the relevant Loan Party.

“Environmental Liabilities and Costs” means all liabilities (including strict
liabilities), monetary obligations, losses, damages, punitive damages, consequential damages,
treble damages, costs and expenses (including all reasonable fees, disbursements and expenses of
counsel, experts, or consultants, and costs of investigation, feasibility studies and laboratory
fees), fines, penalties, sanctions, and interest incurred as a result of any Environmental Action,
or any Remedial Action required to comply with Environmental Laws or required by any Governmental
Authority or any third party.

“Environmental Lien” means any Lien in favor of any Governmental Authority for
Environmental Liabilities and Costs.

 

5

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any
successor statute of similar import, and regulations thereunder, in each case, as in effect from
time to time. References to sections of ERISA shall be construed also to refer to any successor
sections.

“ERISA Affiliate” means, with respect to any Person, any trade or business (whether or
not incorporated) which is a member of a group of which such Person is a member and which would be
deemed to be a “controlled group” within the meaning of Sections 414(b), (c), (m) and (o) of the
Internal Revenue Code.

“Event of Default” means any of the events set forth in Section 7.01.

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

“Federal Funds Rate” means, for any period, a fluctuating interest rate per annum
equal to, for each day during such period, the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day which is a Business Day, the average of the quotations for
such day on such transactions received by the Lenders from three Federal funds brokers of
recognized standing selected by them.

“Final Maturity Date” means April 29, 2016, or such earlier date on which any Loan
shall become due and payable in accordance with the terms of this Agreement and the other Loan
Documents.

“Financial Statements” means (i) the audited consolidated balance sheet of the
Borrower and its Subsidiaries (including Paline Pipeline Company) as of April 30, 2009 and 2010,
together with corresponding audited consolidated statements of operations and of cash flows of the
Borrower and its Subsidiaries (including Paline Pipeline Company) for the fiscal years ended April
30, 2010, 2009 and 2008, and (ii) the unaudited consolidated interim balance sheet of the Borrower
and its Subsidiaries (including Paline Pipeline Company) as of January 31, 2011, together with
corresponding unaudited consolidated interim statements of operations for the nine-month periods
ended January 31, 2011 and 2010 and unaudited interim combined statements of cash flows for the
nine-month periods ended January 31, 2011 and 2010.

“Fiscal Year” means the fiscal year of the Borrower and its Subsidiaries ending on
April 30 of each year, subject to any change permitted hereunder.

“GAAP” means generally accepted accounting principles in effect from time to time in
the United States, applied on a consistent basis, provided that for the purpose of any
financial covenant herein or in the Parent Guaranty and the definitions used therein, “GAAP” shall
mean generally accepted accounting principles in effect on the date hereof and consistent with
those used in the preparation of the Financial Statements, provided, further, that
if there occurs after the date of this Agreement any change in GAAP that affects in any respect the
calculation of any such financial covenant, the Required Lenders and the Borrower shall negotiate
in good faith amendments to the provisions of this Agreement that relate to the calculation of such
covenant with the intent of having the respective positions of the Lenders and the Borrower after
such change in GAAP conform as nearly as possible to their respective positions as of the date of
this Agreement and, until any such amendments have been agreed upon, such financial covenants shall
be calculated as if no such change in GAAP has occurred. In addition and without limiting the
foregoing, it is agreed and understood that if any change in GAAP shall result in the requirement
that existing or future obligations under operating leases from time to time entered into by the
Borrower or its Subsidiaries (as determined in accordance with GAAP as in effect on the Effective
Date) be treated as Indebtedness or Capitalized Leases, such operating leases shall not be treated
as Indebtedness or Capitalized Leases hereunder, including, without limitation, for purposes of
calculating covenants hereunder and shall be treated as operating leases.

“Governing Documents” means, (a) with respect to any corporation, the certificate or
articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with
respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization, and the operating agreement; (c) with respect
to any partnership, joint venture, trust or other form of business entity, the partnership, joint
venture agreement, declaration or other applicable agreement or documentation evidencing or
otherwise relating to its formation or organization; and (d) with respect to any of the entities
described above, any
other agreement, instrument, filing or notice with respect thereto filed in connection with
its formation or organization with the applicable Governmental Authority in the jurisdiction of its
formation or organization.

 

6

 

“Governmental Authority” means any nation or government, any Federal, state, city,
town, municipality, county, local or other political subdivision thereof or thereto and any
department, commission, board, bureau, instrumentality, agency or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

“Growth Capital Expenditures” means, with respect to any Person for any period, the
aggregate of all Capital Expenditures by such Person and its Subsidiaries during such period that
will increase the Nelson complexity rating of the assets of the Borrower or its Subsidiaries, and
shall exclude in any event any maintenance and regulatory Capital Expenditures.

“Guaranteed Obligations” has the meaning specified therefor in Section 9.01.

“Guarantors” means the Subsidiary Guarantors, the Parent Guarantors and all other
Persons that guarantee, pursuant to Section 6.01(b) or otherwise, all or any part of the
Obligations.

“Hazardous Material” means (a) any element, compound or chemical that is defined,
listed or otherwise classified as a contaminant, pollutant, toxic pollutant, toxic or hazardous
substance, extremely hazardous substance or chemical, hazardous waste, special waste, or solid
waste under Environmental Laws, which is present in the environment in such quantity or state that
it contravenes any Environmental Law; (b) petroleum and its refined products; (c) polychlorinated
biphenyls; (d) any substance exhibiting a hazardous waste characteristic, including, without
limitation, corrosivity, ignitability, toxicity or reactivity as well as any radioactive or
explosive materials; and (e) any raw materials, building components (including, without limitation,
asbestos-containing materials) and manufactured products containing hazardous substances listed or
classified as such under Environmental Laws. Hazardous Material does not include CO2 or other
greenhouse gases unless regulations are promulgated and implemented by a Governmental Authority and
there is no pending litigation or appeal that would affect the enforcement of CO2 or other
greenhouse gases as Hazardous Materials.

“Hedging Agreement” means any interest rate, foreign currency, commodity or equity
swap, collar, cap, floor or forward rate agreement, or other agreement or arrangement designed to
protect against fluctuations in interest rates or currency, commodity or equity values (including,
without limitation, any option with respect to any of the foregoing and any combination of the
foregoing agreements or arrangements), and any confirmation executed in connection with any such
agreement or arrangement.

“IDB Notes” means (i) the Amended and Restated Replacement Promissory Note I, dated
April 29, 2011, made by Delek Finance, Inc., to the order of Israel Discount Bank of New York, in
the original principal amount of $20,000,000.00, and (ii) the Amended and Restated Replacement
Promissory Note II, dated April 29, 2011, made by Delek Finance, Inc., to the order of Israel
Discount Bank of New York, in the original principal amount of $30,000,000.00

“Indebtedness” means, with respect to any Person, without duplication, (i) all
indebtedness of such Person for borrowed money; (ii) all obligations of such Person for the
deferred purchase price of property or services (other than trade payables or other accounts
payable incurred in the ordinary course of such Person’s business and not outstanding for more than
120 days after the date such payable was created); (iii) all obligations of such Person evidenced
by bonds, debentures, notes or other similar instruments or upon which interest payments are
customarily made; (iv) all reimbursement, payment or other obligations and liabilities of such
Person created or arising under any conditional sales or other title retention agreement with
respect to property used and/or acquired by such Person, even though the rights and remedies of the
lessor, seller and/or lender thereunder may be limited to repossession or sale of such property;
(v) all Capitalized Lease Obligations of such Person; (vi) all obligations and liabilities,
contingent or otherwise, of such Person, in respect of letters of credit, acceptances and similar
facilities; (vii) all obligations and liabilities, calculated on a basis satisfactory to the
Required Lenders and in accordance with accepted practice, of such Person under Hedging Agreements;
(viii) all monetary obligations under any receivables factoring, receivable sales or similar
transactions and all monetary obligations under any synthetic lease, tax ownership/operating lease,
off-balance sheet financing or similar financing; (ix) all Contingent Obligations; and (x) all
obligations referred to in clauses (i)
through (ix) of this definition of another Person secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by) a Lien upon property
owned by such Person, even though such Person has not assumed or become liable for the payment of
such Indebtedness. The Indebtedness of any Person shall include the Indebtedness of any
partnership of or joint venture in which such Person is a general partner or a joint venturer.

 

7

 

“Indemnified Matters” has the meaning specified therefor in Section 10.15.

“Indemnitees” has the meaning specified therefor in Section 10.15.

“Insolvency Proceeding” means any proceeding commenced by or against any Person under
any provision of the Bankruptcy Code or under any other bankruptcy or insolvency law, assignments
for the benefit of creditors, formal or informal moratoria, compositions, or extensions generally
with creditors, or proceedings seeking reorganization, arrangement, or other similar relief.

“Intercreditor Agreement” means the Amended and Restated Intercreditor Agreement,
dated April 29, 2011, by and among the Collateral Agent, each Lender, Israel Discount Bank of New
York, in its capacity as the holder of the IDB Notes, and Bank Leumi USA, in its capacity as the
holder of the Leumi Note, pursuant to which the parties thereto agree as to their relative rights
in respect of the Collateral (as defined therein).

“Interest Payment Date” means, (a) as to any Reference Rate Loan, the last day of each
March, June, September and December to occur while such Loan is outstanding and the final maturity
date of such Loan, (b) as to any LIBOR Rate Loan, the last day of such Interest Period and (c) as
to any Loan, the date of any repayment or prepayment made in respect thereof.

“Interest Period” means, with respect to each LIBOR Rate Loan, a period commencing on
the date of the making of such LIBOR Rate Loan (or the continuation of a LIBOR Rate Loan or the
conversion of a Reference Rate Loan to a LIBOR Rate Loan) and ending 1, 2, or 3 months thereafter;
provided, however, that (a) if any Interest Period would end on a day that is not a
Business Day, such Interest Period shall be extended (subject to clauses (c)-(e) below) to the next
succeeding Business Day, (b) interest shall accrue at the applicable rate based upon the LIBOR Rate
from and including the first day of each Interest Period to, but excluding, the day on which any
Interest Period expires, (c) any Interest Period that would end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day falls in another
calendar month, in which case such Interest Period shall end on the next preceding Business Day,
(d) with respect to an Interest Period that begins on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the calendar month at the end of
such Interest Period), the Interest Period shall end on the last Business Day of the calendar month
that is 1, 2 or 3 months after the date on which the Interest Period began, as applicable, and (e)
the Borrower may not elect an Interest Period that will end after the Final Maturity Date.

“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended (or any
successor statute thereto) and the regulations thereunder.

“J. Aron Supply and Offtake Agreement” means the Master Supply and Offtake Agreement,
dated as of April 29, 2011, among J. Aron & Company, a general partnership organized under the laws
of New York, the Borrower and Lion Oil Trading & Transportation, Inc., a Guarantor hereunder, as in
effect on the date hereof.

“Lease” means any lease of real property to which any Loan Party or any of its
Subsidiaries is a party as lessor or lessee.

“Lender” has the meaning specified therefor in the preamble hereto.

“Lender’s Account” means an account at a bank designated by each Lender from time to
time as the account into which the Loan Parties shall make all payments to such Lender under this
Agreement and the other Loan Documents.

 

8

 

“Leumi Note” means the Amended and Restated Promissory Note, dated April 29, 2011,
made by Delek US Holdings, Inc., to the order of Bank Leumi USA, in the original principal amount
of $50,000,000.00.

“LIBOR” means, with respect to each day during each Interest Period pertaining to a
LIBOR Rate Loan, the rate per annum determined on the basis of the rate for deposits in Dollars for
a period equal to such Interest Period commencing on the first day of such Interest Period
appearing on Reuters Screen LIBOR01 Page as of 11:00 A.M. (London, England time), two Business Days
prior to the beginning of such Interest Period. In the event that such rate does not appear on
Reuters Screen LIBOR01 Page screen (or otherwise on such screen), “LIBOR” for purposes of this
definition shall be the rate of interest determined by the Required Lenders to be the rate at which
deposits in Dollars are offered to major banks in the London interbank market, two Business Days
prior to the beginning of such Interest Period, in an amount approximately equal to the principal
amount of the LIBOR Rate Loan to which such Interest Period is to apply and for a period of time
comparable to such Interest Period, which determination shall be conclusive absent manifest error.

“LIBOR Notice” means a written notice substantially in the form of Exhibit B.

“LIBOR Rate” means, for each Interest Period for each LIBOR Rate Loan, the rate per
annum determined by the Required Lenders (rounded upwards if necessary, to the next 1/100%) by
dividing (a) LIBOR for such Interest Period by (b) 100% minus the Reserve Percentage. The LIBOR
Rate shall be adjusted on and as of the effective day of any change in the Reserve Percentage.

“LIBOR Rate Loan” means each portion of a Loan that bears interest at a rate
determined by reference to the LIBOR Rate.

“Lien” means any mortgage, deed of trust, pledge, lien (statutory or otherwise),
security interest, charge or other encumbrance or security or preferential arrangement of any
nature, including, without limitation, any conditional sale or title retention arrangement, any
Capitalized Lease and any assignment, deposit arrangement or financing lease intended as, or having
the effect of, security.

“Loan” means the portion of the Term Loan made by a Lender to the Borrower pursuant to
ARTICLE II hereof.

“Loan Document” means this Agreement, any Guaranty, any Security Agreement, any Pledge
Agreement, any Mortgage, any UCC Filing Authorization Letter, the Intercreditor Agreement, the
Subordination Agreements and any other agreement, instrument, and other document executed and
delivered pursuant hereto or thereto or otherwise evidencing or securing any Loan or any other
Obligation.

“Loan Party” means the Borrower and any Subsidiary Guarantor.

“Material Adverse Effect” means a material adverse effect on any of (i) the
operations, business, assets, properties or condition (financial or otherwise) of the Borrower and
its Subsidiaries taken as a whole or of the Parent, (ii) the ability of any Credit Party to perform
any of its obligations under any Loan Document to which it is a party, (iii) the legality, validity
or enforceability of this Agreement or any other Loan Document, (iv) the rights and remedies of the
Collateral Agent or any Lender under any Loan Document, or (v) the validity, perfection or priority
of a Lien in favor of the Collateral Agent and for the benefit of the Lenders on any of the
Collateral.

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

“Mortgage” means a mortgage (including, without limitation, a leasehold mortgage),
deed of trust or deed to secure debt, in form and substance reasonably satisfactory to the Required
Lenders, made by a Loan Party in favor of the Collateral Agent for the benefit of the Lenders,
securing the Obligations and delivered to the Collateral Agent pursuant to Section 4.01(c), Section
6.01(b), Section 6.01(l) or otherwise.

“Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of
ERISA to which any Loan Party or any of its ERISA Affiliates has contributed to, or has been
obligated to contribute, at any time during the preceding six (6) years.

 

9

 

“Net Cash Proceeds” means, (i) with respect to any Disposition by any Person or any of
its Subsidiaries or any Casualty Event with respect to any property of any Person, the amount of
cash received (directly or indirectly) from time to time (whether as initial consideration or
through the payment or disposition of deferred consideration) by or on behalf of such Person or
such Subsidiary, in connection therewith after deducting therefrom only (A) the amount of any
Indebtedness secured by any Lien permitted by Section 6.02(a) on any asset (other than Indebtedness
assumed by the purchaser of such asset) which is required to be, and is, repaid in connection with
such Disposition or Casualty Event (other than Indebtedness under this Agreement), (B) reasonable
expenses related thereto incurred by such Person or such Subsidiary in connection therewith, (C)
transfer taxes paid to any taxing authorities by such Person or such Subsidiary in connection
therewith, (D) net income taxes to be paid in connection with such Disposition (after taking into
account any tax credits or deductions and any tax sharing arrangements), and (E) the deduction of
reasonable and appropriate amounts provided by the seller as a reserve, in accordance with GAAP,
against any liabilities associated with the property disposed in the Disposition and retained by
the Borrower or any Subsidiary after the Disposition, until any such reserves are released (and
upon such release such proceeds shall be considered Net Cash Proceeds and shall be applied in
accordance with Section 2.05(c)), and (ii) with respect to the issuance or incurrence of any
Indebtedness by any Person or any of its Subsidiaries, or the sale or issuance by any Person or any
of its Subsidiaries of any shares of its Capital Stock, the aggregate amount of cash received
(directly or indirectly) from time to time (whether as initial consideration or through the payment
or disposition of deferred consideration) by or on behalf of such Person or such Subsidiary in
connection therewith, after deducting therefrom only (A) reasonable expenses related thereto
incurred by such Person or such Subsidiary in connection therewith, (B) transfer taxes paid by such
Person or such Subsidiary in connection therewith and (C) net income taxes to be paid in connection
therewith (after taking into account any tax credits or deductions and any tax sharing
arrangements); in each case of clause (i) and (ii) to the extent, but only to the extent, that the
amounts so deducted are (x) actually paid to a Person that, except in the case of reasonable
out-of-pocket expenses, is not an Affiliate of such Person or any of its Subsidiaries and (y)
properly attributable to such transaction or to the asset that is the subject thereof.

“New Lending Office” has the meaning specified therefor in Section 2.07(d).

“Non-U.S. Lender” has the meaning specified therefor in Section 2.07(d)

“Notice of Borrowing” has the meaning specified therefor in Section 2.02(a).

“Obligations” means all present and future indebtedness, obligations, and liabilities
of each Credit Party to the Collateral Agent and the Lenders, whether or not the right of payment
in respect of such claim is reduced to judgment, liquidated, unliquidated, fixed, contingent,
matured, disputed, undisputed, legal, equitable, secured, unsecured, and whether or not such claim
is discharged, stayed or otherwise affected by any proceeding referred to in Section 7.01. Without
limiting the generality of the foregoing, the Obligations of each Credit Party under the Loan
Documents include (a) the obligation to pay principal, interest, charges, expenses, fees,
attorneys’ fees and disbursements, indemnities and other amounts payable by such Person under the
Loan Documents, and (b) the obligation of such Person to reimburse any amount in respect of any of
the foregoing that the Collateral Agent or any Lender (in its sole discretion) may elect to pay or
advance on behalf of such Person.

“Operating Lease Obligations” means all obligations for the payment of rent for any
real or personal property under leases or agreements to lease, other than Capitalized Lease
Obligations.

“Original Lender” means each of BLUSA, Hapoalim and IDB, if and so long as such Lender
is not a Selling Lender.

“Other Taxes” has the meaning specified therefor in Section 2.07(b).

“Parent” means Delek US Holdings, Inc., a Delaware corporation.

“Parent Consolidated Tax Return” means any income or franchise tax return that
includes the Parent and its Subsidiaries that is filed on a consolidated, combined or unified
basis.

 

10

 

“Parent Guaranty” means the Guaranty dated as of the date hereof, made by the Parent
in favor of the Collateral Agent and the Lenders.

“Payment Office” means each Lender’s office as may be designated in writing from time
to time by such Lender to the Borrower.

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

“Permitted Borrower Cure Security” means (i) common equity securities of the Borrower,
to the extent pledged to the Collateral Agent pursuant to a Pledge Agreement, (ii) other equity
securities of the Borrower not constituting Disqualified Capital Stock, to the extent pledged to
the Collateral Agent pursuant to a Pledge Agreement, and (iii) Subordinated Indebtedness of the
Borrower to the extent such subordinated Indebtedness is expressly subordinated in right of payment
to the prior payment in full of the Term Loans and related obligations on terms reasonably
acceptable to the Required Lenders.

“Permitted Indebtedness” means:

(a) any Indebtedness owing to the Collateral Agent and any Lender under this Agreement and the
other Loan Documents;

(b) any other Indebtedness listed on Schedule 6.02(b), and the extension of maturity,
refinancing or modification of the terms thereof; provided, however, that (i) such
extension, refinancing or modification is pursuant to terms that are not less favorable to the Loan
Parties and the Lenders than the terms of the Indebtedness being extended, refinanced or modified
and (ii) after giving effect to such extension, refinancing or modification, the amount of such
Indebtedness is not greater than the amount of Indebtedness outstanding immediately prior to such
extension, refinancing or modification, plus an amount necessary to pay fees and expenses,
including premiums and defeasance costs related to the extension, refinancing or modification;

(c) Indebtedness in respect of reimbursement obligations in connection with bonds or other
obligations permitted under clause (i) of the definition of “Permitted Liens”;

(d) Indebtedness permitted under clause (e) of the definition of “Permitted Lien”;

(e) Indebtedness permitted under Section 6.02(e);

(f) the Subordinated Borrower Indebtedness;

(g) Subordinated Indebtedness to the extent a Permitted Investor is the lender thereof;

(h) Indebtedness evidenced by the Seller Note;

(i) Indebtedness secured by the inventory, Accounts Receivable and the proceeds thereof of the
Borrower and its Subsidiaries (including, without limitation, the AR Guaranty and letters of credit
issued for the account of a Loan Party in the ordinary course of business);

(j) Indebtedness of the Borrower to Parent;

(k) Indebtedness under Hedging Agreements entered into by the Loan Parties for the purpose of
limiting interest rate risk in the ordinary course of the financial management of the Loan Parties
and not for speculative purposes, provided that the obligations under such Hedging Agreements are
related to payment obligations on Indebtedness otherwise permitted hereunder;

(l) Indebtedness under Hedging Agreements entered into by the Loan Parties for the purpose of
limiting currency exchange rate risks directly related to transactions entered into by the Loan
Parties in the ordinary course of business and not for speculative purposes;

 

11

 

(m) Indebtedness under Hedging Agreements entered into by the Loan Parties for the purpose of
limiting commodity price risk in the ordinary course of the financial management of the Loan
Parties and not for speculative purposes;

(n) Indebtedness of the Borrower owing to and held by any Subsidiary Guarantor and
Indebtedness of a Subsidiary Guarantor owing to and held by the Borrower or any Subsidiary
Guarantor;

(o) Indebtedness arising from agreements of the Loan Parties providing for indemnification,
adjustment of purchase price or similar obligations, in each case, incurred in connection with the
disposition of any business, assets or Capital Stock of a Subsidiary Guarantor; provided that the
maximum aggregate liability in respect of all such Indebtedness shall at no time exceed the gross
proceeds actually received by the Loan Parties in connection with such disposition;

(p) Indebtedness of the Borrower under the Optional Advance Note (as such term is defined in
the Receivables Purchase Agreement, dated as of April 29, 2011, by and between Delek Refining, Ltd.
and the Borrower); and

(q) Other unsecured Indebtedness of the Borrower or any of its Subsidiaries, provided,
that the aggregate principal amount of all such Indebtedness shall not exceed $5,000,000 at any
time outstanding.

“Permitted Investments” means (i) marketable direct obligations issued or
unconditionally guaranteed by the United States Government or issued by any agency thereof and
backed by the full faith and credit of the United States, in each case, maturing within six months
from the date of acquisition thereof; (ii) commercial paper, maturing not more than 270 days after
the date of issue rated P-1 by Moody’s or A-1 by Standard & Poor’s; (iii) certificates of deposit
maturing not more than 270 days after the date of issue, issued by commercial banking institutions
and money market or demand deposit accounts maintained at commercial banking institutions, each of
which is a member of the Federal Reserve System and has a combined capital and surplus and
undivided profits of not less than $500,000,000; (iv) repurchase agreements having maturities of
not more than 90 days from the date of acquisition which are entered into with major money center
banks included in the commercial banking institutions described in clause (iii) above and which are
secured by readily marketable direct obligations of the United States Government or any agency
thereof, (v) money market accounts maintained with mutual funds having assets in excess of
$2,500,000,000; and (vi) tax exempt securities rated A or higher by Moody’s or A+ or higher by
Standard & Poor’s.

“Permitted Investors” means the collective reference to Delek Group Ltd. and its
Control Investment Affiliates.

“Permitted Liens” means:

(a) Liens securing the Obligations;

(b) Liens for taxes, assessments and governmental charges the payment of which is not required
under Section 6.01(c);

(c) Liens imposed by law, such as carriers’, warehousemen’s, mechanics’, materialmen’s and
other similar Liens arising in the ordinary course of business and securing obligations (other than
Indebtedness for borrowed money) that are not overdue by more than 60 days or are being contested
in good faith and by appropriate proceedings promptly initiated and diligently conducted, and a
reserve or other appropriate provision, if any, as shall be required by GAAP shall have been made
therefore, provided that (i) in each case, no foreclosure, sale or similar proceeding shall
have been commenced with respect to any portion of the Collateral on account thereof and (ii) the
aggregate amount of obligations or other liabilities secured by a Lien on assets constituting
Collateral that is not subordinate to the Collateral Agent’s Lien on such Collateral does not
exceed $5,000,000 at any time;

(d) Liens described on Schedule 6.02(a), but not the extension of coverage thereof to other
property or the increase of the Indebtedness secured thereby;

 

12

 

(e) (i) Liens on fixed assets in respect of Capitalized Lease Obligations entered into to
finance Capital Expenditures in accordance with Section 6.02(f), (ii) purchase money Liens on fixed
assets acquired or held by any Loan Party or any of its Subsidiaries in the ordinary course of its
business to secure the purchase price of such fixed assets or Indebtedness incurred solely for the
purpose of financing the acquisition of such fixed assets or (iii) Liens existing on such fixed
assets at the time of its acquisition; provided, however, that (A) no such Lien
shall extend to or cover any other property of any Loan Party or any of its Subsidiaries, (B) the
principal amount of the Indebtedness secured by any such Lien shall not exceed the lesser of 80% of
the fair market value or the cost of the property so held or acquired and (C) the aggregate
principal amount of Indebtedness secured by any or all such Liens shall not exceed at any one time
outstanding $35,000,000;

(f) deposits and pledges of cash securing obligations on surety or appeal bonds, but only to
the extent such deposits or pledges are made or otherwise arise in the ordinary course of business
and secure obligations not past due;

(g) easements, utility easements, building restrictions, zoning restrictions and similar
encumbrances on real property and minor irregularities in the title thereto that do not (i) secure
obligations for the payment of money or (ii) materially impair the value of such property or its
use by any Loan Party or any of its Subsidiaries in the normal conduct of such Person’s business;

(h) Liens securing Indebtedness permitted by subsection (c) and (to the extent limited to
Accounts Receivable, inventory and proceeds thereof) subsection (i) of the definition of Permitted
Indebtedness, including Liens on inventory and the proceeds thereof securing obligations arising
under the J. Aron Supply and Offtake Agreement;

(i) Liens on the property of the Borrower or any Subsidiary incurred in the ordinary course of
business to secure performance of obligations with respect to statutory or regulatory requirements,
performance or return-of-money bonds, surety bonds or other obligations of a like nature and
incurred in a manner consistent with industry practice, including banker’s liens and rights of
set-off, in each case which are not incurred in connection with the borrowing of money, the
obtaining of advances or credit, the payment of the deferred purchase price of property or
incurrence of other Indebtedness and which do not in the aggregate impair in any respect the use of
property in the operation of the business of the Borrower and its Subsidiaries taken as a whole,
provided that the aggregate amount of performance or return-of-money bonds, surety bonds or other
obligations of a like nature shall not exceed $20,000,000 at any time outstanding and such bonds or
other obligations shall (if required) be secured by cash or cash equivalents;

(j) Liens arising out of judgments or awards against the Borrower or its Subsidiaries that do
not constitute an Event of Default under Section 7.01(k) of this Agreement;

(l) leases or subleases of real property granted by the Borrower or its Subsidiaries to any
other Person in the ordinary course of business, to the extent not otherwise expressly prohibited
by this Agreement or the other Loan Documents and not materially interfering with or impairing the
use of the real property in the operation of the business of the Borrower or its Subsidiaries;

(m) Liens securing the IDB Notes and the Leumi Note on the assets of the Borrower and its
Subsidiaries; provided, that such Liens are fully subordinated (on a completely silent
basis until all of the Obligations have been paid in full) to the Liens securing the Obligations on
terms and conditions reasonably satisfactory to the Required Lenders; and

(n) Environmental Liens that do not (i) have a Material Adverse Affect, or (ii) otherwise
materially impair the operation of the business for which Borrower has posted or caused to be
posted bonds or other financial assurances that the Collateral Agent and the Lenders within their
sole discretion determine to be sufficient to satisfy the obligations or liability evidenced by
such Environmental Liens.

 

13

 

“Permitted Securitization Transaction” means any transaction or series of transactions
otherwise permitted pursuant to Section 6.02(c) and designated in writing by the Borrower to the
Lenders to be a “Permitted Securitization Transaction” that is entered into by the Borrower or any
Subsidiary pursuant to which the Borrower or
any Subsidiary, as applicable, may sell, convey or otherwise transfer to a Special Purpose
Subsidiary any inventory or Accounts Receivable (whether now existing or arising in the future) of
the Borrower or such Subsidiary and any proceeds thereof, including all collateral securing such
Accounts Receivable, all contracts and all guarantees or other obligations in respect of such
Accounts Receivable, and proceeds of such Accounts Receivable and other assets that are customarily
transferred, or in respect of which security interests are customarily granted, in connection with
asset securitization transactions involving Accounts Receivable.

“Person” means an individual, corporation, limited liability company, partnership,
association, joint-stock company, trust, unincorporated organization, joint venture or other
enterprise or entity or Governmental Authority.

“Pipeline Property” means real property owned or leased solely for the purpose of
operating or maintaining a pipeline through such real property; provided that such real
property does not include any storage terminal, processing equipment or other personal property
components of any related gathering system.

“Plan” means any Employee Plan or Multiemployer Plan.

“Pledge Agreement” means a Pledge and Security Agreement made by the Parent in favor
of the Collateral Agent for the benefit of the Lenders, securing the Obligations.

“Post-Default Rate” means a rate of interest per annum equal to the rate of interest
otherwise in effect from time to time pursuant to the terms of this Agreement plus 5.00%, or, if a
rate of interest is not otherwise in effect, interest at the highest rate specified herein for any
Loan then outstanding prior to an Event of Default plus 5.00%.

“Pro Rata Share” means, with respect to a Lender’s obligation to make the Term Loan
and receive payments of interest, fees, and principal with respect thereto, the percentage obtained
by dividing (i) such Lender’s Term Loan Commitment, by (ii) the Total Term Loan Commitment,
provided that if the Total Term Loan Commitment has been reduced to zero, the numerator
shall be the aggregate unpaid principal amount of such Lender’s portion of the Term Loan and the
denominator shall be the aggregate unpaid principal amount of the Term Loan.

“Real Property” means any estates or interests in real property now owned or hereafter
acquired by Borrower or its Subsidiaries and the improvements thereto.

“Real Property Collateral” means any Real Property owned by the Borrower or its
Subsidiaries and in which the Collateral Agent has a perfected, first priority mortgage lien
(subject to Permitted Liens having priority as a matter of applicable law).

“Reference Rate” means the rate of interest publicly announced by each Lender in New
York, New York from time to time as its reference rate, base rate or prime rate. The reference
rate, base rate or prime rate is determined from time to time by such Lender as a means of pricing
some loans to its borrowers and neither is tied to any external rate of interest or index nor
necessarily reflects the lowest rate of interest actually charged by such Lender to any particular
class or category of customers. Each change in the Reference Rate shall be effective from and
including the date such change is publicly announced as being effective.

“Reference Rate Loan” means each portion of a Loan that bears interest at a rate
determined by reference to the Reference Rate.

“Regulation T”, “Regulation U” and “Regulation X” mean, respectively,
Regulations T, U and X of the Board or any successor, as the same may be amended or supplemented
from time to time.

“Related Fund” means, with respect to any Person, an Affiliate of such Person, or a
fund or account managed by such Person or an Affiliate of such Person.

“Related Party Assignment” has the meaning specified therefor in Section 10.07(b).

 

14

 

“Release” means any spilling, leaking, pumping, pouring, emitting, emptying,
discharging, injecting, escaping, leaching, seeping, migrating, dumping or disposing of any
Hazardous Material (including the abandonment or discarding of barrels, containers and other closed
receptacles containing any Hazardous Material) into the indoor or outdoor environment, including,
without limitation, the movement of Hazardous Materials through or in the ambient air, soil,
surface or ground water, or property.

“Remedial Action” means all actions taken to (i) clean up, remove, remediate, contain,
treat, monitor, assess, evaluate or in any other way address Hazardous Materials in the indoor or
outdoor environment; (ii) prevent or minimize a Release or threatened Release of Hazardous
Materials so they do not migrate or endanger or threaten to endanger public health or welfare or
the indoor or outdoor environment; (iii) perform pre-remedial studies and investigations and
post-remedial operation and maintenance activities; or (iv) perform any other actions authorized by
42 U.S.C. § 9601.

“Reportable Event” means an event described in Section 4043 of ERISA (other than an
event not subject to the provision for 30-day notice to the PBGC under the regulations promulgated
under such Section).

“Required Lenders” means (a) for purposes of the final paragraph of Section 7.01 (with
respect to acceleration) and the right to direct the Collateral Agent with respect to the exercise
of rights and remedies after the occurrence and continuance of an Event of Default, any Original
Lender and (b) for all other purposes, Lenders whose Pro Rata Shares of the Term Loan aggregate at
least 51% (and must in any event include each Lender that is an Original Lender).

“Requirements of Law” means, with respect to any Person, collectively, the common law
and all federal, state, provincial, local, foreign, multinational or international laws, statutes,
codes, treaties, standards, rules and regulations, guidelines, ordinances, orders, judgments,
writs, injunctions, decrees (including administrative or judicial precedents or authorities) and
the interpretation or administration thereof by, and other determinations, directives, requirements
or requests of, any Governmental Authority, in each case that are applicable to or binding upon
such Person or any of its property or to which such Person or any of its property is subject.

“SEC” means the Securities and Exchange Commission or any other similar or successor
agency of the Federal government administering the Securities Act.

“Securities Act” means the Securities Act of 1933, as amended, or any similar Federal
statute, and the rules and regulations of the SEC thereunder, all as the same shall be in effect
from time to time.

“Security Agreement” means the Security Agreement, dated as of April 29, 2011, made by
the Loan Parties in favor of the Collateral Agent for the benefit of the Lenders, securing the
Obligations.

“Seller” means Ergon, Inc., a Mississippi corporation.

“Seller Note” means the Promissory Note dated the date hereof, made by the Borrower to
the order of the Seller and in the principal amount of $50,000,000.

“Selling Lender” shall mean any Original Lender that has sold or assigned all or any
portion of its Term Loan to a Person that is not an Affiliate, excluding for these purposes any
pledge to the Federal Reserve Bank or other Governmental Authority in support of borrowings made by
such Original Bank, to the extent the Federal Reserve Bank or such other Governmental Authority is
not then entitled to exercise any voting rights under such pledge in respect of such portion of the
Term Loan.

“Solvent” means, with respect to any Person on a particular date, that on such date
(i) the fair value of the property of such Person is not less than the total amount of the
liabilities of such Person, (ii) the present fair salable value of the assets of such Person is not
less than the amount that will be required to pay the probable liability of such Person on its
existing debts as they become absolute and matured, (iii) such Person is able to realize upon its
assets and pay its debts and other liabilities, contingent obligations and other commitments as
they mature in the normal course of business, (iv) such Person does not intend to, and does not
believe that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts
and liabilities mature, and (v) such Person is not engaged
in business or a transaction, and is not about to engage in business or a transaction, for
which such Person’s property would constitute unreasonably small capital.

 

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“Special Purpose Subsidiary” means any special purpose entity that (a) is a domestic
subsidiary of the Borrower and (b) has no operations and whose primary assets (other than cash and
cash equivalents) are Accounts Receivable or inventory that has been sold or otherwise transferred
by a Loan Party.

“Specified Fixed Asset Collateral” means, as of any date of determination, any real
property, equipment and other fixed assets then owned by a Loan Party, including, without
limitation, the Real Property Collateral, to the extent such real property, equipment or other
fixed assets are not the subject of a Lien (other than (i) Permitted Liens that do not secure
Indebtedness and (ii) Permitted Liens incurred pursuant to clause (m) of the definition of
Permitted Liens) in favor of a Person other than the Collateral Agent.

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

“Subordinated Borrower Indebtedness” means the Indebtedness evidenced by the
Subordinated Borrower Note.

“Subordinated Borrower Note” means the promissory note dated as of the date hereof,
made by the Borrower in favor of the Parent and in the principal amount of $45,000,000.

“Subordinated Indebtedness” means (a) the Subordinated Borrower Indebtedness and (b)
other Indebtedness of any Credit Party the terms of which are reasonably satisfactory to the
Required Lenders and which has been expressly subordinated in right of payment to all Indebtedness
of such Loan Party under the Loan Documents (i) by the execution and delivery of a subordination
agreement, in form and substance reasonably satisfactory to the Required Lenders, or (ii) otherwise
on terms and conditions (including, without limitation, subordination provisions, payment terms,
interest rates, covenants, remedies, defaults and other material terms) reasonably satisfactory to
the Required Lenders.

“Subordination Agreements” means (a) the Subordination Agreement (Borrower), dated as
of the date hereof, by and among the Borrower, as obligor, the Parent, as subordinated creditor,
and the Collateral Agent, and (b) the Subordination Agreement (Parent), dated as of the date
hereof, by and among the Parent, as obligor, the Delek Petroleum Ltd., as subordinated creditor,
and the Collateral Agent.

“Subordinated Parent Indebtedness” means the Indebtedness evidenced by the
Subordinated Parent Note.

“Subordinated Parent Note” means the promissory note dated as of the date hereof, made
by the Parent in favor of Delek Petroleum Ltd. and in the principal amount of $40,000,000.

“Subsidiary” means, with respect to any Person at any date, any corporation, limited
or general partnership, limited liability company, trust, estate, association, joint venture or
other business entity (i) the accounts of which would be consolidated with those of such Person in
such Person’s consolidated financial statements if such financial statements were prepared in
accordance with GAAP or (ii) of which more than 50% of (A) the outstanding Capital Stock having (in
the absence of contingencies) ordinary voting power to elect a majority of the board of directors
or other managing body of such Person, (B) in the case of a partnership or limited liability
company, the interest in the capital or profits of such partnership or limited liability company or
(C) in the case of a trust, estate, association, joint venture or other entity, the beneficial
interest in such trust, estate, association or other entity business is, at the time of
determination, owned or controlled directly or indirectly through one or more intermediaries, by
such Person. References to a Subsidiary shall mean a Subsidiary of the Borrower unless the context
expressly provides otherwise.

“Subsidiary Guarantor” means (i) each Subsidiary of the Borrower listed as a
“Guarantor” on the signature pages hereto, and (ii) each other Subsidiary that guarantees, pursuant
to Section 6.01(b) or otherwise, all or any part of the Obligations.

 

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“Subsidiary Guaranty” means (i) the guaranty of each Guarantor party hereto contained
in ARTICLE IX hereof, and (ii) each guaranty, in form and substance acceptable to the Required
Lenders, made by any other Guarantor in favor of the Collateral Agent and the Lenders pursuant to
Section 6.01(b) or otherwise.

“Taxes” has the meaning specified therefor in Section 2.07(a).

“Term Loan” means, collectively, the loans made by the Term Loan Lenders to the
Borrower on the Effective Date pursuant to Section 2.01.

“Term Loan Commitment” means, with respect to each Lender, the commitment of such
Lender to make the Term Loan to the Borrower in the amount set forth in Schedule 1.01(A) hereto, as
the same may be terminated or reduced from time to time in accordance with the terms of this
Agreement.

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

“Term Loan Obligations” means any Obligations with respect to the Term Loan (including
without limitation, the principal thereof, the interest thereon, and the fees and expenses
specifically related thereto).

“Termination Event” means (i) a Reportable Event with respect to any Employee Plan,
(ii) any event that causes any Loan Party or any of its ERISA Affiliates to incur liability under
Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section
4971 or 4975 of the Internal Revenue Code, (iii) the filing of a notice of intent to terminate an
Employee Plan or the treatment of an Employee Plan amendment as a termination under Section 4041 of
ERISA, (iv) the institution of proceedings by the PBGC to terminate an Employee Plan, or (v) any
other event or condition which might constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Employee Plan.

“Title Insurance Policy” means a mortgagee’s loan policy, in form and substance
satisfactory to the Required Lenders, together with all endorsements made from time to time
thereto, issued by or on behalf of a title insurance company satisfactory to the Required Lenders,
insuring the Lien created by a Mortgage in an amount and on terms satisfactory to the Required
Lenders, delivered to the Collateral Agent.

“Total Term Loan Commitment” means the sum of the amounts of the Lenders’ Term Loan
Commitments.

“Transferee” has the meaning specified therefor in Section 2.07(a).

“Turnaround” means a planned, periodic shut down (total or partial) of a group of
refinery process units or plants to perform maintenance, overhaul and repair operations and to
inspect, test and replace process materials and equipment.

“UCC Filing Authorization Letter” means a letter duly executed by each Credit Party
authorizing the Collateral Agent to file appropriate financing statements on Form UCC-1 without the
signature of such Credit Party in such office or offices as may be necessary or, in the opinion of
the Collateral Agent and the Lenders, desirable to perfect the security interests purported to be
created by each Security Agreement, each Pledge Agreement and each Mortgage.

“Uniform Commercial Code” has the meaning specified therefor in Section 1.03.

“Unrestricted Cash” means Cash and Cash Equivalents that are freely transferable and
are not subject to any Lien (other than inchoate or banker’s Liens) in favor of any Person, other
than the Collateral Agent or a Lender to secure the Obligations.

“WARN” has the meaning specified therefor in Section 5.01(u).

 

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Section 1.02 Terms Generally. The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the
corresponding masculine, feminine and neuter forms. The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”. The word “will”
shall be construed to have the same meaning and effect as the word “shall”. Unless the context
requires otherwise, (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all references herein to
Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of,
and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any right or interest in or to assets
and properties of any kind whatsoever, whether real, personal or mixed and whether tangible or
intangible. References in this Agreement to “determination” by any Lender or the Collateral Agent
include good faith estimates by such Lender or the Collateral Agent (in the case of quantitative
determinations) and good faith beliefs by such Lender or the Collateral Agent (in the case of
qualitative determinations).

Section 1.03 Accounting and Other Terms. Unless otherwise expressly provided herein,
each accounting term used herein shall have the meaning given it under GAAP applied on a basis
consistent with those used in preparing the Financial Statements. All terms used in this Agreement
which are defined in Article 8 or Article 9 of the Uniform Commercial Code as in effect from time
to time in the State of New York (the “Uniform Commercial Code”) and which are not
otherwise defined herein shall have the same meanings herein as set forth therein, provided that
terms used herein which are defined in the Uniform Commercial Code as in effect in the State of New
York on the date hereof shall continue to have the same meaning notwithstanding any replacement or
amendment of such statute except as the Required Lenders may otherwise determine.

Section 1.04 Time References. Unless otherwise indicated herein, all references to
time of day refer to Eastern Standard Time or Eastern daylight saving time, as in effect in New
York City on such day. For purposes of the computation of a period of time from a specified date
to a later specified date, the word “from” means “from and including” and the words “to” and
“until” each means “to but excluding”; provided, however, that with respect to a
computation of fees or interest payable to the Collateral Agent or any Lender, such period shall in
any event consist of at least one full day.

ARTICLE II

THE LOANS

Section 2.01 Commitments. Subject to the terms and conditions and relying upon the
representations and warranties herein set forth, each Term Loan Lender severally agrees to make the
Term Loan to the Borrower on the Effective Date, in an aggregate principal amount not to exceed the
amount of such Lender’s Term Loan Commitment. Notwithstanding the foregoing, the aggregate
principal amount of the Term Loan made on the Effective Date shall not exceed the Total Term Loan
Commitment. Any principal amount of the Term Loan that is repaid or prepaid may not be reborrowed.

Section 2.02 Making the Loans. (a) The Borrower shall give the Lenders prior
telephonic notice (immediately confirmed in writing, in substantially the form of Exhibit A hereto
(a “Notice of Borrowing”)), not later than 12:00 noon (New York City time) on the date
which is three (3) Business Days prior to the date of the proposed Loan (or such shorter period as
the Lenders are willing to accommodate from time to time, but in no event later than 12:00 noon
(New York City time) on the borrowing date of the proposed Loan). Such Notice of Borrowing shall
be irrevocable and shall specify (i) the principal amount of the proposed Loan, (ii) whether the
Loan is requested to be a Reference Rate Loan or a LIBOR Rate Loan and, in the case of a LIBOR Rate
Loan, the initial Interest Period with respect thereto, (iii) the use of the proceeds of such
proposed Loan, and (iv) the proposed borrowing date, which must be the Effective Date. The Lenders
may act without liability upon the basis of written, telecopied or telephonic notice believed by
the Lenders in good faith to be from the Borrower (or from any Authorized Officer thereof
designated in writing purportedly from the Borrower to the Lenders).

 

18

 

(b) All Loans under this Agreement shall be made by the Lenders simultaneously and
proportionately to their Pro Rata Shares of the Total Term Loan Commitment, as the case may be, it
being understood that no Lender shall be responsible for any default by any other Lender in that
other Lender’s obligations to make a Loan requested hereunder, nor shall the Commitment of any
Lender be increased or decreased as a result of the default by any other Lender in that other
Lender’s obligation to make a Loan requested hereunder, and each Lender shall be obligated to make
the Loans required to be made by it by the terms of this Agreement regardless of the failure by any
other Lender.

Section 2.03 Repayment of Loans; Evidence of Debt. (a) The outstanding principal of
the Term Loan shall be repayable in (i) 20 consecutive quarterly installments, on the last day of
each March, June, September and December (each a “Scheduled Repayment Date”), commencing on
June 30, 2011 and ending on March 31, 2016, consisting of (x) four (4) installments, each in an
amount equal to $1,500,000, followed by (y) sixteen (16) installments, each in an amount equal to
$4,000,000, and (ii) one (1) payment on the Final Maturity Date in the amount necessary to repay in
full the unpaid principal amount of the Term Loan. The outstanding principal of the Term Loan
shall be repaid in full on the Final Maturity Date. The Borrower shall pay directly to each Lender
its Pro Rata Share of each installment of principal of the Term Loan that is payable in accordance
with this Section.

(b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the Indebtedness of the Borrower to such Lender resulting from each Loan made by such
Lender, including the amounts of principal and interest payable and paid to such Lender from time
to time hereunder. The entries made in the accounts so maintained shall be prima
facie evidence of the existence and amounts of the obligations recorded therein;
provided that the failure of any Lender to maintain such accounts or any error therein
shall not in any manner affect the obligation of the Borrower to repay the Loans in accordance with
the terms of this Agreement.

(c) Any Lender may request that Loans made by it be evidenced by a promissory note. In such
event, the Borrower shall execute and deliver to such Lender a promissory note payable to the order
of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) in the
form attached as Exhibit D hereto, or as otherwise requested by the Required Lenders and reasonably
acceptable to the Borrower. Thereafter, the Loans evidenced by such promissory note and interest
thereon shall at all times (including after assignment pursuant to Section 10.07) be represented by
one or more promissory notes in such form payable to the order of the payee named therein.

Section 2.04 Interest.

(a) Term Loan. Subject to the terms of this Agreement, at the option of the Borrower,
the Term Loan or any portion thereof shall be either a Reference Rate Loan or a LIBOR Rate Loan.
Each portion of the Term Loan that is: (i) a Reference Rate Loan shall bear interest on the
principal amount thereof from time to time outstanding, from the date of such Reference Rate Loan
until repaid, at a rate per annum equal to the greater of (A) 5.50% and (B) the Reference Rate of
such Lender plus the Applicable Margin, and (ii) each portion of the Term Loan that is a LIBOR Rate
Loan shall bear interest on the principal amount thereof from time to time outstanding, from the
date of such LIBOR Rate Loan until repaid, at a rate per annum equal to the greater of (A) 5.50%
and (B) the LIBOR Rate for the Interest Period in effect for the Term Loan (or such portion
thereof) plus the Applicable Margin. Each LIBOR Rate Loan and each Reference Rate Loan shall
automatically be allocated to each Lender in accordance with its Pro Rata Share.

(b) Default Interest. To the extent permitted by law, upon the occurrence and during
the continuance of an Event of Default, the principal of, and all accrued and unpaid interest on,
all Loans, fees, indemnities or any other Obligations of the Credit Parties under this Agreement
and the other Loan Documents, shall bear interest, from the date such Event of Default occurred
until the date such Event of Default is cured or waived in writing in accordance herewith, at a
rate per annum equal at all times to the Post-Default Rate.

(c) Interest Payment. Interest on each Loan shall be payable directly to each Lender
on each Interest Payment Date and at maturity (whether upon demand, by acceleration or otherwise),
and in each case shall be paid to each Lender based on its Pro Rata Share. Interest at the
Post-Default Rate shall be payable on demand.

 

19

 

(d) General. All interest shall be computed on the basis of a year of 360 days for
the actual number of days, including the first day but excluding the last day, elapsed.

Section 2.05 Reduction of Commitment; Prepayment of Loans.

(a) Reduction of Commitments. The Total Term Loan Commitment shall terminate at 5:00
p.m. (New York City time) on the Effective Date.

(b) Optional Prepayment. The Borrower may, upon at least five (5) Business Days’
prior written notice to the Lenders, prepay without penalty or premium (other than breakage
compensation pursuant to Section 2.09) the principal of the Term Loan, in whole or in part,
provided that the Borrower shall have no right to prepay the Term Loan pursuant to this
clause 2.05(b) more than twice in any calendar year. Each prepayment made pursuant to this clause
2.05(b) shall be accompanied by the payment of (i) accrued interest to the date of such payment on
the amount prepaid and (ii) the Applicable Prepayment Premium, if any, payable in connection with
such prepayment of the Term Loan. Each such prepayment shall (A) be applied against the remaining
quarterly installments of principal due on the Term Loan on a pro rata basis, and (B) be made to
each Lender in accordance with its Pro Rata Share of the Term Loan.

(c) Mandatory Prepayments.

(i) Within five (5) Business Days of any Disposition by any Loan Party or its Subsidiaries
pursuant to Section 6.02(c)(ii), the Borrower shall prepay the outstanding principal amount of the
Term Loan in an amount equal to 100% of the Net Cash Proceeds received by such Person in connection
with such Disposition to the extent that the aggregate amount of Net Cash Proceeds received by all
Loan Parties and their Subsidiaries (and not paid to the Lenders as a prepayment of the Loans)
shall exceed for all such Dispositions since the Effective Date $25,000,000. Nothing contained in
this subsection (i) shall permit any Loan Party or any of its Subsidiaries to make a Disposition of
any property other than in accordance with Section 6.02(c)(ii).

(ii) Within five (5) Business Days of the issuance or incurrence by any Loan Party or any of
its Subsidiaries of any Indebtedness (other than Permitted Indebtedness), the Borrower shall prepay
the outstanding amount of the Term Loan in an amount equal to 100% of the Net Cash Proceeds
received by such Person in connection therewith. The provisions of this subsection (ii) shall not
be deemed to be implied consent to any such issuance, incurrence or sale otherwise prohibited by
the terms and conditions of this Agreement.

(iii) Subject to Section 2.05(c)(iv) below, within five (5) Business Days of the receipt by
any Loan Party or any of its Subsidiaries of any Net Cash Proceeds in respect of any Casualty
Event, the Borrower shall prepay the outstanding principal of the Term Loan in an amount equal to
100% of such Net Cash Proceeds.

(iv) Notwithstanding the foregoing, with respect to Net Cash Proceeds received by any Loan
Party or any of its Subsidiaries in connection with a Casualty Event that are required to be used
to make prepayments pursuant to Section 2.05(c)(iii), such Net Cash Proceeds shall not be required
to be so used to prepay the Term Loan to the extent that such Net Cash Proceeds are used to
purchase, acquire, replace, repair, restore, construct or improve properties or assets used or
useful in such Person’s business, provided that, (A) no Default or Event of Default has
occurred and is continuing on the date such Person receives such Net Cash Proceeds, (B) the
Borrower delivers a certificate to the Lenders on or prior to the date such prepayment would
otherwise be required to be made, certifying as to clause (A) and the amount of such Net Cash
Proceeds and stating that such Net Cash Proceeds shall be used to purchase, acquire, replace,
repair, restore, construct or improve properties or assets used in such Person’s business and that
such purchase, acquisition, replacement, repair, restoration, construction or improvement shall
commence within 180 days after the date of receipt of such certificate, (C) if such Net Cash
Proceeds exceed $1,500,000, such Net Cash Proceeds shall be deposited and held in deposit accounts
maintained with each of BLUSA, Hapoalim and IDB (to the extent each is a Lender) based on their Pro
Rata Shares, subject to disbursement in accordance with arrangements mutually agreeable (in their
reasonable commercial discretion) to the Borrower and such Lenders, provided that it is
understood and agreed that such Net Cash Proceeds may be applied to the Obligations if at any time
a Default or Event of Default has occurred and is continuing, and (D) upon the earlier of (1) the
expiration of the period specified in the relevant certificate furnished to the Lenders pursuant to
clause (B) above
(as such period may be extended by the Required Lenders in their reasonable commercial
discretion) or (2) the occurrence of a Default or an Event of Default, such Net Cash Proceeds, if
commencement of such work has not occurred, shall be used to make mandatory prepayments in
accordance with Section 2.05(c)(iii). Notwithstanding the foregoing, it is understood and agreed
that proceeds of business interruption insurance shall not be required to be used to prepay the
Term Loan pursuant to this Section 2.05(c).

 

20

 

(d) Application of Mandatory Payments. Each prepayment pursuant to subsections
(c)(i), (c)(ii) and (c)(iii) above shall be made ratably to each Lender in accordance with its Pro
Rata Share of the Term Loan. Each such prepayment shall be applied (i) against the installments of
principal scheduled to be due on the eight Scheduled Repayment Dates immediately following such
prepayment, in the direct order of maturity, and (ii) thereafter, against all remaining quarterly
installments of principal due on the Term Loan on a pro rata basis.

(e) Interest and Fees. Any prepayment made pursuant to this Section 2.05 shall be
accompanied by accrued interest on the principal amount being prepaid to the date of prepayment and
any amounts owing under Section 2.09.

(f) Cumulative Prepayments. Except as otherwise expressly provided in this Section
2.05, payments with respect to any subsection of this Section 2.05 are in addition to payments made
or required to be made under any other subsection of this Section 2.05.

Section 2.06 Fees.

(a) Closing Fee. On or prior to the Effective Date, the Borrower shall pay to each
Lender a non-refundable closing fee (the “Closing Fee”) equal to 0.50% multiplied by such
Lender’s Term Loan Commitment, which shall be deemed fully earned when paid.

(b) Other Fees. As and when due and payable under the terms of any fee letter, the
Borrower shall pay the fees set forth in such fee letter.

Section 2.07 Taxes. (a) Any and all payments by any Loan Party hereunder or under
any other Loan Document shall be made free and clear of and without deduction for any and all
present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities
with respect thereto, excluding taxes imposed on the net income of the Collateral Agent or
any Lender (or any transferee or assignee thereof, including a participation holder (any such
entity, a “Transferee”)) by the jurisdiction in which such Person is organized or has its
principal lending office (all such nonexcluded taxes, levies, imposts, deductions, charges
withholdings and liabilities, collectively or individually, “Taxes”). If any Loan Party
shall be required to deduct any Taxes from or in respect of any sum payable hereunder to the
Collateral Agent or any Lender (or any Transferee), (i) the sum payable shall be increased by the
amount (an “additional amount”) necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section 2.08) the Collateral
Agent or such Lender (or such Transferee) shall receive an amount equal to the sum it would have
received had no such deductions been made, (ii) such Loan Party shall make such deductions and
(iii) such Loan Party shall pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law.

(b) In addition, each Loan Party agrees to pay to the relevant Governmental Authority in
accordance with applicable law any present or future stamp or documentary taxes or any other excise
or property taxes, charges or similar levies that arise from any payment made hereunder or from the
execution, delivery or registration of, or otherwise with respect to, this Agreement or any other
Loan Document (“Other Taxes”). Each Loan Party shall deliver to the Collateral Agent and
each Lender official receipts in respect of any Taxes or Other Taxes payable hereunder promptly
after payment of such Taxes or Other Taxes.

(c) The Loan Parties hereby jointly and severally indemnify and agree to hold the Collateral
Agent and each Lender harmless from and against Taxes and Other Taxes (including, without
limitation, Taxes and Other Taxes imposed on any amounts payable under this Section 2.08) paid by
such Person, whether or not such Taxes or Other Taxes were correctly or legally asserted. Such
indemnification shall be paid within 10 days from the date on which any such Person makes written
demand therefore specifying in reasonable detail the nature and amount of such Taxes or Other
Taxes.

 

21

 

(d) Each Lender (or Transferee) that is organized under the laws of a jurisdiction outside the
United States (a “Non-U.S. Lender”) agrees that it shall, no later than the Effective Date
(or, in the case of a Lender which becomes a party hereto pursuant to Section 10.07 hereof after
the Effective Date, promptly after the date upon which such Lender becomes a party hereto) deliver
to the Collateral Agent one properly completed and duly executed copy of either U.S. Internal
Revenue Service Form W-8BEN, W-8ECI or W-8IMY or any subsequent versions thereof or successors
thereto, in each case claiming complete exemption from, or reduced rate of, U.S. Federal
withholding tax and payments of interest hereunder. In addition, in the case of a Non-U.S. Lender
claiming exemption from U.S. Federal withholding tax under Section 871(h) or 881(c) of the Internal
Revenue Code, such Non-U.S. Lender hereby represents to the Borrower that such Non-U.S. Lender is
not a bank for purposes of Section 881(c) of the Internal Revenue Code, is not a 10-percent
shareholder (within the meaning of Section 871(h)(3)(B) of the Internal Revenue Code) of the Parent
and is not a controlled foreign corporation related to the Parent (within the meaning of Section
864(d)(4) of the Internal Revenue Code), and such Non-U.S. Lender agrees that it shall promptly
notify the other Lenders if any such representation is no longer accurate. Such forms shall be
delivered by each Non-U.S. Lender on or before the date it becomes a party to this Agreement (or,
in the case of a Transferee that is a participation holder, on or before the date such
participation holder becomes a Transferee hereunder) and on or before the date, if any, such
Non-U.S. Lender changes its applicable lending office by designating a different lending office (a
“New Lending Office”). In addition, such Non-U.S. Lender shall deliver such forms within
20 days after receipt of a written request therefor from the Collateral Agent, the assigning Lender
or the Lender granting a participation, as applicable. Notwithstanding any other provision of this
Section 2.07, a Non-U.S. Lender shall not be required to deliver any form pursuant to this Section
2.07(d) that such Non-U.S. Lender is not legally able to deliver.

(e) The Loan Parties shall not be required to indemnify any Non-U.S. Lender, or pay any
additional amounts to any Non-U.S. Lender, in respect of United States Federal withholding tax
pursuant to this Section 2.07 to the extent that (i) the obligation to withhold amounts with
respect to United States Federal withholding tax existed on the date such Non-U.S. Lender became a
party to this Agreement (or, in the case of a Transferee that is a participation holder, on the
date such participation holder became a Transferee hereunder) or, with respect to payments to a New
Lending Office, the date such Non-U.S. Lender designated such New Lending Office with respect to a
Loan; provided, however, that this clause (i) shall not apply to the extent the
indemnity payment or additional amounts any Transferee, or Lender (or Transferee) through a New
Lending Office, would be entitled to receive (without regard to this clause (i)) do not exceed the
indemnity payment or additional amounts that the Person making the assignment, participation or
transfer to such Transferee, or Lender (or Transferee) making the designation of such New Lending
Office, would have been entitled to receive in the absence of such assignment, participation,
transfer or designation, or (ii) the obligation to pay such additional amounts would not have
arisen but for a failure by such Non-U.S. Lender to comply with the provisions of clause (d) above.

(f) The Collateral Agent or any Lender (or Transferee) claiming any indemnity payment or
additional payment amounts payable pursuant to this Section 2.08 shall use reasonable efforts
(consistent with legal and regulatory restrictions) to file any certificate or document reasonably
requested in writing by the Borrower or to change the jurisdiction of its applicable lending office
if the making of such a filing or change would avoid the need for or reduce the amount of any such
indemnity payment or additional amount that may thereafter accrue, would not require the Collateral
Agent or such Lender (or Transferee) to disclose any information the Collateral Agent or such
Lender (or Transferee) deems confidential and would not, in the sole determination of the
Collateral Agent or such Lender (or Transferee), be otherwise disadvantageous to the Collateral
Agent or such Lender (or Transferee).

(g) The obligations of the Loan Parties under this Section 2.08 shall survive the termination
of this Agreement and the payment of the Loans and all other amounts payable hereunder.

Section 2.08 Continuation and Conversion of Loans. (a) The Borrower may from time to
time request LIBOR Rate Loans or may request that a Loan that is a Reference Rate Loan be converted
to a LIBOR Rate Loan or that any existing LIBOR Rate Loan continue for an additional Interest
Period. Such request from the Borrower to the Lenders shall be in writing and shall specify the
amount of the LIBOR Rate Loans or the amount of the Reference Rate Loans to be converted to LIBOR
Rate Loans or the amount of the LIBOR Rate Loans to be continued (subject to the limits set forth
below) and the Interest Period to be applicable to such LIBOR Rate Loans, provided that such
request shall apply to the Term Loan or a portion of each Lender’s Pro Rata Share of the Term Loan.
Subject to the terms and conditions contained herein, three Business Days after receipt by each
Lender of such

 

22

 

a request from the Borrower, such LIBOR Rate Loans shall be made or Reference Rate Loans shall
be converted to LIBOR Rate Loans or such LIBOR Rate Loans shall continue, as the case may be,
provided that, (i) no Event of Default shall exist or have occurred and be continuing, (ii)
no party hereto shall have sent any notice of termination of this Agreement pursuant to the terms
hereof, (iii) no more than five (5) Interest Periods may be in effect at any one time, (iv) the
aggregate amount of the LIBOR Rate Loans must be in an aggregate amount not less than $10,000,000
or an integral multiple of $500,000 in excess thereof and each Lender shall have a Pro Rata Share
thereof, and (v) no Lender shall have notified the Borrower that LIBOR Rate Loans are unavailable
pursuant to Section 2.11. Any request by or on behalf of the Borrower for LIBOR Rate Loans or to
convert Reference Rate Loans to LIBOR Rate Loans or to continue any existing LIBOR Rate Loans shall
be irrevocable. Notwithstanding anything to the contrary contained herein, the Lenders shall not
be required to purchase United States Dollar deposits in the London interbank market or other
applicable LIBOR Rate market to fund any LIBOR Rate Loans, but the provisions hereof shall be
deemed to apply as if the Lenders had purchased such deposits to fund the LIBOR Rate Loans.

(b) Any LIBOR Rate Loans shall automatically convert to Reference Rate Loans upon the last day
of the applicable Interest Period, unless each Lender has received a request to continue such LIBOR
Rate Loans at least three Business Days prior to such last day in accordance with the terms hereof.

Section 2.09 Funding Losses. In connection with each LIBOR Rate Loan, the Borrower
shall indemnify, defend, and hold the Lenders harmless against any loss, cost, or expense incurred
by any Lender as a result of (a) the payment of any principal of any LIBOR Rate Loan other than on
the last day of an Interest Period applicable thereto (including as a result of a Default or an
Event of Default), (b) the conversion of any LIBOR Rate Loan other than on the last day of the
Interest Period applicable thereto (including as a result of a Default or an Event of Default), or
(c) the failure to borrow, convert, continue or prepay any LIBOR Rate Loan on the date specified in
any LIBOR Notice delivered pursuant hereto (such losses, costs, and expenses, collectively,
“Funding Losses”). Funding Losses shall, with respect to the Collateral Agent or any
Lender, be deemed to equal the amount reasonably determined by the Collateral Agent or such Lender
to be the excess, if any, of (i) the amount of interest that would have accrued on the principal
amount of such LIBOR Rate Loan had such event not occurred, for the period from the date of such
event to the last day of the then current Interest Period therefor (or, in the case of a failure to
borrow, convert or continue, for the period that would have been the Interest Period therefor),
minus (ii) the amount of interest that would accrue on such principal amount for such
period at the interest rate which such Lender would be offered were it to be offered, at the
commencement of such period, Dollar deposits of a comparable amount and period in the London
interbank market. A certificate of a Lender delivered to the Borrower setting forth any amount or
amounts that such Lender is entitled to receive pursuant to this Section 2.09 shall be conclusive
absent manifest error.

Section 2.10 Increased Costs and Reduced Return. (a) If any Lender shall have
determined that any Change in Law shall (i) subject such Lender, or any Person controlling such
Lender to any tax, duty or other charge with respect to this Agreement or any Loan made by such
Lender, or change the basis of taxation of payments to such Lender or any Person controlling such
Lender of any amounts payable hereunder (except for taxes on the overall net income of such Lender
or any Person controlling such Lender), (ii) impose, modify or deem applicable any reserve, special
deposit or similar requirement against any Loan or against assets of or held by, or deposits with
or for the account of, or credit extended by, such Lender or any Person controlling such Lender or
(iii) impose on such Lender or any Person controlling such Lender any other condition regarding
this Agreement or any Loan, and the result of any event referred to in clauses (i), (ii) or (iii)
above shall be to increase the cost to such Lender of making any Loan or agreeing to make any Loan,
or to reduce any amount received or receivable by such Lender hereunder, then, upon demand by such
Lender, the Borrower shall pay to such Lender such additional amounts as will compensate such
Lender for such increased costs or reductions in amount.

(b) If any Lender shall have determined that any Change in Law either (i) affects or would
affect the amount of capital required or expected to be maintained by such Lender or any Person
controlling such Lender, and such Lender determines that the amount of such capital is increased as
a direct or indirect consequence of any Loans made or maintained or any guaranty or participation
with respect thereto, such Lender’s or such other controlling Person’s other obligations hereunder,
or (ii) has or would have the effect of reducing the rate of return on such Lender’s such other
controlling Person’s capital to a level below that which such Lender or such controlling Person
could have achieved but for such circumstances as a consequence of any Loans made or maintained, or
any guaranty or participation with respect thereto or any agreement to make Loans, or such Lender’s
or such other controlling Person’s other obligations hereunder (in each case, taking into
consideration, such Lender’s or
such other controlling Person’s policies with respect to capital adequacy), then, upon demand
by such Lender, the Borrower shall pay to such Lender from time to time such additional amounts as
will compensate such Lender for such cost of maintaining such increased capital or such reduction
in the rate of return on such Lender’s or such other controlling Person’s capital.

 

23

 

(c) All amounts payable under this Section 2.10 shall bear interest from the date that is ten
(10) days after the date of demand by any Lender until payment in full to the Collateral Agent or
such Lender at the Reference Rate. A certificate of such Lender claiming compensation under this
Section 2.10, specifying the event herein above described and the nature of such event shall be
submitted by such Lender to the Borrower, setting forth the additional amount due and an
explanation of the calculation thereof, and such Lender’s reasons for invoking the provisions of
this Section 2.10, and shall be final and conclusive absent manifest error.

(d) Failure or delay on the part of any Lender to demand compensation pursuant to the
foregoing provisions of this Section 2.10 shall not constitute a waiver of such Lender’s right to
demand such compensation; provided that the Borrower shall not be required to compensate a
Lender pursuant to the foregoing provisions of this Section 2.10 for any increased costs incurred
or reductions suffered more than nine months prior to the date that such Lender notifies the
Borrower of the Change in Law giving rise to such increased costs or reductions and of such
Lender’s intention to claim compensation therefor (except that, if the Change in Law giving rise to
such increased costs or reductions is retroactive, then the nine-month period referred to above
shall be extended to include the period of retroactive effect thereof).

(e) The obligations of the Loan Parties under this Section 2.10 shall survive the termination
of this Agreement and the payment of the Loans and all other amounts payable hereunder.

Section 2.11 LIBOR Not Determinable; Impracticability or Illegality.

(a) If on or before the day on which the LIBOR Rate is to be determined in connection with the
continuation of a LIBOR Rate Loan as such or a conversion of a Reference Rate Loan into a LIBOR
Rate Loan, any Lender determines in good faith that, (i) the LIBOR Rate cannot be determined for
any reason, (ii) the LIBOR Rate will not adequately and fairly reflect the cost of maintaining
LIBOR Rate Loans or (iii) Dollar deposits in the principal amount of the applicable LIBOR Rate
Loans are not available in the London interbank market, such Lender shall, as soon as practicable
thereafter, give written notice of such determination to the Borrower and the other Lenders. Upon
any such determination (A) each LIBOR Rate Loan made by the Lenders shall be converted into a
Reference Rate Loan at the end of the then current Interest Period and (B) any request by the
Borrower for the conversion of a Reference Rate Loan to a LIBOR Rate Loan shall be deemed to be a
request to automatically continue a Reference Rate Loan as a Reference Rate Loan, in each case
until such Lender has advised the Borrower and the other Lenders that the circumstances giving rise
to such notice no longer exist. Each determination by any Lender hereunder shall be conclusive and
binding absent manifest error.

(b) If it shall be unlawful or improper for any Lender to make, maintain or fund any LIBOR
Rate Loan as contemplated by this Agreement, then such Lender shall forthwith give notice thereof
to the other Lenders and the Borrower describing such illegality or impropriety in reasonable
detail. Effective immediately upon the giving of such notice, the obligation of such Lender to
make LIBOR Rate Loans shall be suspended for the duration of such illegality or impropriety and, if
and when such illegality or impropriety ceases to exist, such suspension shall cease, and such
Lender shall notify the Borrower and the other Lenders. If any such change shall make it unlawful
or improper for any Lender to maintain any outstanding LIBOR Rate Loan as a LIBOR Rate Loan, such
Lender shall, upon the happening of such event, notify the other Lenders and the Borrower, and the
Borrower shall immediately, or if permitted by applicable Requirement of Law, interpretation,
request or directive, at the end of the then current Interest Period for such LIBOR Rate Loan,
convert each such LIBOR Rate Loan into a Reference Rate Loan.

(c) The obligations of the Loan Parties under this Section 2.11 shall survive the termination
of this Agreement and the payment of the Loans and all other amounts payable hereunder.

 

24

 

ARTICLE III

FEES, PAYMENTS AND OTHER COMPENSATION

Section 3.01 Payments; Computations and Statements. The Borrower will make each
payment under this Agreement not later than 12:00 noon (New York City time) on the day when due, in
lawful money of the United States of America and in immediately available funds, to each Lender at
its Payment Office. All payments received by a Lender after 12:00 noon (New York City time) on any
Business Day will be credited against the applicable Obligation on the next succeeding Business
Day. All payments shall be made by the Borrower without set-off, counterclaim, deduction or other
defense to the Collateral Agent and the Lenders. Whenever any payment to be made under any such
Loan Document shall be stated to be due on a day other than a Business Day, such payment shall be
made on the next succeeding Business Day and such extension of time shall in such case be included
in the computation of interest or fees, as the case may be, except in the case of any LIBOR Rate
Loan as otherwise provided in the definition of “Interest Period”. All computations of fees shall
be made by the Lenders on the basis of a year of 360 days for the actual number of days (including
the first day but excluding the last day) occurring in the period for which such fees are payable.
Each determination by the Lenders of an interest rate or fees hereunder shall be conclusive and
binding for all purposes in the absence of manifest error.

Section 3.02 Sharing of Payments, Etc. If any Lender shall obtain any payment
(whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on
account of any Obligation in excess of its ratable share of payments on account of similar
obligations obtained by all the Lenders, such Lender shall forthwith purchase from the other
Lenders such participations in such similar obligations held by them as shall be necessary to cause
such purchasing Lender to share the excess payment ratably with each of them; provided,
however, that if all or any portion of such excess payment is thereafter recovered from
such purchasing Lender, such purchase from each Lender shall be rescinded and such Lender shall
repay to the purchasing Lender the purchase price to the extent of such recovery together with an
amount equal to such Lender’s ratable share (according to the proportion of (i) the amount of such
Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender of any
interest or other amount paid by the purchasing Lender in respect of the total amount so
recovered). The Borrower agrees that any Lender so purchasing a participation from another Lender
pursuant to this Section 3.02 may, to the fullest extent permitted by law, exercise all of its
rights (including the Lender’s right of set-off) with respect to such participation as fully as if
such Lender were the direct creditor of the Borrower in the amount of such participation.
Notwithstanding the foregoing, to the extent any Credit Party maintains Cash or Cash Equivalents in
any deposit account with Hapoalim and such Credit Party owes any obligations or liabilities to
Hapoalim or its Affiliates other than the Obligations under any Loan Document (the “Unrelated
Obligations”), Hapoalim hereby agrees that it shall not exercise any right of set-off against
such Unrelated Obligations until the Obligations hereunder are paid in full.

Section 3.03 Apportionment of Payments. Subject to any written agreement among the
Lenders:

(a) all payments of principal and interest in respect of outstanding Loans, all payments of
fees and all other payments in respect of any other Obligations shall be made to such of the
Lenders as are entitled thereto, in proportion to their respective Pro Rata Shares or otherwise as
provided herein or, in respect of payments not made on account of Loans, as designated by the
Person making payment when the payment is made.

(b) After the occurrence and during the continuance of an Event of Default, the Lenders shall
apply all payments in respect of any Obligations and all proceeds of the Collateral, subject to the
provisions of this Agreement, (i) first, ratably to pay the Obligations in respect of any
fees, expense reimbursements, indemnities and other amounts then due to the Collateral Agent until
paid in full; (ii) second, ratably to pay the Term Loan Obligations in respect of any fees
and indemnities then due to the Term Loan Lenders until paid in full; (iii) third, ratably
to pay interest due in respect of the Term Loan until paid in full; (iv) fourth, ratably to
pay principal of the Term Loan until paid in full, and (v) fifth, to the ratable payment of
all other Obligations then due and payable.

(c) In each instance, so long as no Event of Default has occurred and is continuing, Section
3.03(b) shall not be deemed to apply to any payment by the Borrower specified by the Borrower to
the Lenders to be for the payment of Term Loan Obligations then due and payable under any provision
of this Agreement
or the prepayment of all or part of the principal of the Term Loan in accordance with the
terms and conditions of Section 2.05.

 

25

 

(d) For purposes of Section 3.03(b), “paid in full” with respect to interest shall include
interest accrued after the commencement of any Insolvency Proceeding irrespective of whether a
claim for such interest is allowable in such Insolvency Proceeding.

(e) In the event of a direct conflict between the priority provisions of this Section 3.03 and
other provisions contained in any other Loan Document, it is the intention of the parties hereto
that both such priority provisions in such documents shall be read together and construed, to the
fullest extent possible, to be in concert with each other. In the event of any actual,
irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this
Section 3.03 shall control and govern.

ARTICLE IV

CONDITIONS TO LOANS

Section 4.01 Conditions Precedent to Effectiveness. This Agreement shall become
effective as of the Business Day (the “Effective Date”) when each of the following
conditions precedent shall have been satisfied in a manner satisfactory to the Lenders:

(a) Payment of Fees, Etc. The Borrower shall have paid on or before the date of this
Agreement all fees, costs, expenses and taxes then payable pursuant to Section 2.06 and Section
10.04.

(b) Representations and Warranties; No Event of Default. The following statements
shall be true and correct: (i) the representations and warranties contained in ARTICLE V and in
each other Loan Document, certificate or other writing delivered to the Collateral Agent or any
Lender pursuant hereto or thereto on or prior to the Effective Date are true and correct on and as
of the Effective Date as though made on and as of such date and (ii) no Default or Event of Default
shall have occurred and be continuing on the Effective Date or would result from this Agreement or
the other Loan Documents becoming effective in accordance with its or their respective terms.

(c) Delivery of Documents. Subject to the provisions of Section 6.01(o), the Lenders
shall have received on or before the Effective Date the following, each in form and substance
satisfactory to the Lenders and, unless indicated otherwise, dated the Effective Date: this
Agreement, the other Loan Documents, customary officer’s certificates and authorizing resolutions
for each Loan Party, opinions of counsel, certificates of good standing, evidence of the insurance
coverage, Notices of Borrowing, LIBOR Notices and such other agreements, instruments, approvals,
opinions and other documents, each satisfactory to the Lenders in form and substance, as the
Lenders may reasonably request.

(d) Consummation of Acquisition. Concurrently with the making of the initial Loans,
(i) the Parent shall have purchased pursuant to the Acquisition Agreement (no material provision of
which shall have been amended or otherwise modified or waived without the prior written consent of
the Required Lenders), the Acquisition shall have been consummated in accordance with the terms of
the Acquisition Documents and the Parent shall have become the owner, free and clear of all Liens
other than Permitted Liens, of all of the Acquisition Assets, and (ii) each of the parties to the
Acquisition Agreement shall have performed all of the obligations to be performed by it under the
Acquisition Agreement at closing.

(e) Approvals. All consents, authorizations and approvals of, and filings and
registrations with, and all other actions in respect of, any Governmental Authority or other Person
required in connection with the making of the Loans or the conduct of the Loan Parties’ business
shall have been obtained and shall be in full force and effect.

 

26

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES

Section 5.01 Representations and Warranties. Each Loan Party hereby represents and
warrants to the Collateral Agent and the Lenders as follows:

(a) Organization, Good Standing, Etc. Each Loan Party (i) is a corporation, limited
liability company or limited partnership duly organized, validly existing and in good standing
under the laws of the state or jurisdiction of its organization, (ii) has all requisite power and
authority to conduct its business as now conducted and as presently contemplated and, in the case
of the Borrower, to make the borrowings hereunder, and to execute and deliver each Loan Document to
which it is a party, and to consummate the transactions contemplated thereby, and (iii) is duly
qualified to do business and is in good standing in each jurisdiction in which the character of the
properties owned or leased by it or in which the transaction of its business makes such
qualification necessary, except where the failure to do so, individually or in the aggregate, could
not reasonably be expected to result in a Material Adverse Effect.

(b) Authorization, Etc. The execution, delivery and performance by each Loan Party of
each Loan Document to which it is or will be a party, (i) have been duly authorized by all
necessary action, (ii) do not and will not contravene any of its Governing Documents, any material
Requirement of Law or any material Contractual Obligation binding on or otherwise affecting it or
any of its properties, (iii) do not and will not result in or require the creation of any Lien
(other than pursuant to any Loan Document) upon or with respect to any of its properties, and (iv)
do not and will not result in any default, noncompliance, suspension, revocation, impairment,
forfeiture or nonrenewal of any permit, license, authorization or approval applicable to its
operations or any of its properties.

(c) Governmental Approvals. No authorization or approval or other action by, and no
notice to or filing with, any Governmental Authority is required in connection with the due
execution, delivery and performance by any Loan Party of any Loan Document to which it is or will
be a party.

(d) Enforceability of Loan Documents. This Agreement is, and each other Loan Document
to which any Loan Party is or will be a party, when delivered hereunder, will be, a legal, valid
and binding obligation of such Person, enforceable against such Person in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting
creditors’ rights generally.

(e) Capitalization; Subsidiaries.

(i) On the Effective Date, after giving effect to the transactions contemplated hereby to
occur on the Effective Date, the authorized Capital Stock of the Borrower and the issued and
outstanding Capital Stock of the Borrower are as set forth on Schedule 5.01(e). All of the issued
and outstanding shares of Capital Stock of the Borrower have been validly issued and are fully paid
and nonassessable, and the holders thereof are not entitled to any preemptive, first refusal or
other similar rights. Except as described on Schedule 5.01(e), as of the Effective Date, there are
no outstanding debt or equity securities of the Borrower or any of its Subsidiaries and no
outstanding obligations of the Parent or any of its Subsidiaries convertible into or exchangeable
for, or warrants, options or other rights for the purchase or acquisition from the Borrower, or
other obligations of the Borrower to issue, directly or indirectly, any shares of Capital Stock of
the Borrower.

(ii) Schedule 5.01(e) is a complete and correct description of the name, jurisdiction of
incorporation and ownership of the outstanding Capital Stock of such Subsidiaries of the Borrower
in existence on the Effective Date. Except as indicated on such Schedule, as of the Effective
Date, all such Capital Stock is owned by the Borrower or one or more of its wholly-owned
Subsidiaries, free and clear of all Liens. There are no outstanding debt or equity securities of
the Borrower or any of its Subsidiaries and no outstanding obligations of the Borrower or any of
its Subsidiaries convertible into or exchangeable for, or warrants, options or other rights for the
purchase or acquisition from the Borrower or any of its Subsidiaries, or other obligations of
any Subsidiary to issue, directly or indirectly, any shares of Capital Stock of any Subsidiary of
the Borrower.

 

27

 

(f) Litigation; Commercial Tort Claims. Except as set forth in Schedule 5.01(f), as
of the Effective Date, (i) there is no pending or, to the best knowledge of any Loan Party,
threatened action, suit or proceeding affecting any Loan Party or any of its properties before any
court or other Governmental Authority or any arbitrator that (A) could reasonably be expected to
have a Material Adverse Effect or (B) relates to this Agreement or any other Loan Document or any
transaction contemplated hereby or thereby and (ii) as of the Effective Date, none of the Loan
Parties holds any commercial tort claims in respect of which a claim has been filed in a court of
law or a written notice by an attorney has been given to a potential defendant.

(g) Financial Condition.

(i) The Financial Statements, copies of which have been delivered to each Agent and each
Lender, fairly present the consolidated financial condition of the Borrower and its Subsidiaries as
at the respective dates thereof and the consolidated results of operations of the Borrower and its
Subsidiaries for the fiscal periods ended on such respective dates, all in accordance with GAAP.
All material Indebtedness and other liabilities (including, without limitation, Indebtedness,
liabilities for taxes, long-term leases and other unusual forward or long-term commitments), direct
or contingent, of the Borrower and its Subsidiaries are set forth in the Financial Statements, and
since December 31, 2010 no event or development has occurred that has had or could reasonably be
expected to have a Material Adverse Effect.

(ii) The Borrower has heretofore furnished to each Agent and each Lender (A) projected
monthly income statements and statements of cash flows of the Borrower and its Subsidiaries for the
period from May 1, 2011, through December 31, 2012, and (B) projected income statements and
statements of cash flows of the Borrower and its Subsidiaries for the Fiscal Years ending in 2012
through 2016. Such projections are believed by the Borrower at the time furnished to be reasonable
and prepared on a reasonable basis and in good faith, and based on assumptions believed by the
Borrower to be reasonable at the time made and upon the best information then reasonably available
to the Borrower, and the Borrower is not aware of any facts or information that would lead it to
believe that such projections are incorrect or misleading in any material respect.

(h) Compliance with Law, Etc. No Loan Party is in violation of any of its Governing
Documents, any Requirement of Law or any term of any Contractual Obligation binding on or otherwise
affecting it or any of its properties, except to the extent such violation, either individually or
in the aggregate, could not reasonably be expected to have a Material Adverse Effect, and no
Default or Event of Default has occurred and is continuing.

(i) ERISA. No Loan Party nor any of its ERISA Affiliates contributes to, sponsors,
maintains or has an obligation to contribute to or maintain any Multiemployer Plan or any Employee
Plan and has not at any time prior to the date hereof established, sponsored or maintained, been a
party to and has not at any time prior to the date hereof contributed or been obligated to
contribute to or maintain any Multiemployer Plan or any Employee Plan. Except as required by
Section 4980B of the Internal Revenue Code, no Loan Party or any of its ERISA Affiliates maintains
an employee welfare benefit plan (as defined in Section 3(1) of ERISA) which provides health or
welfare benefits (through the purchase of insurance or otherwise) for any retired or former
employee of any Loan Party or any of its ERISA Affiliates or coverage after a participant’s
termination of employment.

(j) Taxes, Etc. All Federal, state and material local tax returns and other reports
required by applicable Requirements of Law to be filed by any Loan Party have been filed, or
extensions have been obtained, and all taxes, assessments and other governmental charges imposed
upon any Loan Party or any property of any Loan Party and which have become due and payable on or
prior to the date hereof have been paid, except to the extent contested in good faith by proper
proceedings which stay the imposition of any penalty, fine or Lien resulting from the non-payment
thereof and with respect to which adequate reserves have been set aside for the payment thereof on
the Financial Statements in accordance with GAAP.

 

28

 

(k) Regulations T, U and X. No Loan Party is or will be engaged in the business of
extending credit for the purpose of purchasing or carrying margin stock (within the meaning of
Regulation T, U or X), and no proceeds of any Loan will be used to purchase or carry any margin
stock or to extend credit to others for the purpose of purchasing or carrying any margin stock or
for any purpose that violates Regulation T, U or X.

(l) Nature of Business. No Loan Party is engaged in any business other than the
operation of a crude oil refinery, crude oil transportation and gathering systems (including
receiving and storage stations) and the operation of various product pipelines and terminals,
together with activities and operations related thereto.

(m) Adverse Agreements, Etc. No Loan Party is a party to any Contractual Obligation
or subject to any restriction in any Governing Document or any judgment, order, regulation, ruling
or other requirement of a court or other Governmental Authority, which has, or in the future could
reasonably be expected to have, a Material Adverse Effect.

(n) Permits, Etc. Each Loan Party has, and is in compliance with, all permits,
licenses, authorizations, approvals, entitlements and accreditations required for such Person
lawfully to own, lease, manage or operate, or to acquire, each business currently owned, leased,
managed or operated, or to be acquired, by such Person other than permits, licenses,
authorizations, approvals, entitlements and accreditations that the failure to obtain, either
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse
Effect. No condition exists or event has occurred which, in itself or with the giving of notice or
lapse of time or both, would result in the suspension, revocation, impairment, forfeiture or
non-renewal of any such permit, license, authorization, approval, entitlement or accreditation, and
there is no claim that any thereof is not in full force and effect.

(o) Properties. (i) Each Loan Party has good and marketable title to, valid
leasehold interests in, or valid licenses to use, all property and assets material to its business,
free and clear of all Liens, except Permitted Liens. All such properties and assets necessary for
the Loan Parties to conduct their business are in good working order and condition, ordinary wear
and tear excepted.

(ii) Schedule 5.01(o) sets forth a complete and accurate list, as of the Effective Date, of
the location, by state and street address, of all real property (other than Pipeline Property)
owned or leased by each Loan Party and identifies the interest (fee or leasehold) of such Loan
Party therein. As of the Effective Date, each Loan Party has valid leasehold interests in each
material Lease described on Schedule 5.01(o) to which it is a party. Each such Lease is valid and
enforceable in accordance with its terms in all material respects and is in full force and effect.
No consent or approval of any landlord or other third party in connection with any such Lease is
necessary for any Loan Party to enter into and execute the Loan Documents to which it is a party,
except as set forth on Schedule 5.01(o). To the best knowledge of any Loan Party, no other party
to any such Lease is in default of its obligations thereunder, and no Loan Party (or any other
party to any such Lease) has at any time delivered or received any notice of default which remains
uncured under any such Lease and, as of the Effective Date, no event has occurred which, with the
giving of notice or the passage of time or both, would constitute a default under any such Lease.

(iii) Each of the Borrower and its Subsidiaries owns, or is licensed to use, all intellectual
property reasonably necessary for the conduct of its business as currently conducted. No claim has
been asserted and is pending by any Person challenging or questioning the use of any intellectual
property or the validity or effectiveness of any intellectual property, except for claims that
could not, in the aggregate, reasonably be expected to have a Material Adverse Effect, nor does the
Borrower know of any valid basis for any such claim. The use of intellectual property material to
the Borrower or its Subsidiaries for the conduct of its business as currently conducted, does not,
to their knowledge, infringe on the rights of any Person in any material respect.

(p) Full Disclosure. Each Loan Party has disclosed to the Collateral Agent and the
Lenders all agreements, instruments and corporate or other restrictions to which it is subject, and
all other matters known to it, that, individually or in the aggregate, could result in a Material
Adverse Effect. None of the other reports, financial statements, certificates or other information
furnished by or on behalf of any Loan Party to the Collateral Agent or the Lenders in connection
with the negotiation of this Agreement or delivered hereunder (as
modified or supplemented by other information so furnished) contains any material misstatement
of fact or omits to state any material fact necessary to make the statements therein, in the light
of the circumstances under which it was made, not misleading; provided that, with respect
to projected financial information, each Loan Party represents only that such information was
prepared in good faith based upon assumptions believed to be reasonable at the time prepared.

 

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(q) Environmental Matters. Except as set forth on Schedule 5.01(q) or as would not
reasonably be expected to have a Material Adverse Effect, to the knowledge of any Loan Party: (i)
the operations of each Loan Party are in material compliance with all Environmental Laws; (ii)
there has been no Release at any of the properties owned or operated by any Loan Party or its
predecessor in interest, or at any disposal or treatment facility which received Hazardous
Materials generated by any Loan Party or any of their predecessors in interest; (iii) no
Environmental Action has been asserted against any Loan Party or any of their predecessors in
interest nor does any Loan Party have knowledge or notice of any threatened or pending
Environmental Action against any Loan Party or any of their predecessors in interest; (iv) no
Environmental Actions have been asserted against any facilities that may have received Hazardous
Materials generated by any Loan Party or any of their predecessors in interest; (v) no property now
or formerly owned or operated by a Loan Party has been used as a treatment or disposal site for any
Hazardous Material; (vi) no Loan Party has failed to report to the proper Governmental Authority
any Release which is required to be so reported by any Environmental Laws; (vii) each Loan Party
holds all licenses, permits and approvals required under any Environmental Laws in connection with
the operation of the business carried on by it, except for such licenses, permits and approvals as
to which a Loan Party’s failure to maintain or comply with could not have an Environmental Material
Adverse Effect; and (viii) no Loan Party has received any notification pursuant to any
Environmental Laws that (A) any work, repairs, construction or Capital Expenditures are required to
be made in respect as a condition of continued compliance with any Environmental Laws, or any
license, permit or approval issued pursuant thereto or (B) any license, permit or approval referred
to above is about to be reviewed, made, subject to limitations or conditions, revoked, withdrawn or
terminated, in each case, except as could not have a Material Adverse Effect.

(r) Use of Proceeds. The proceeds of the Loans shall be used to (a) refinance
existing indebtedness of the Borrower owing to Seller, (b) pay fees and expenses in connection with
the transactions contemplated hereby and (c) fund working capital and general corporate purposes of
the Borrower, including working capital payments under the Acquisition Agreement.

(s) Solvency. As of the Effective Date, after giving effect to the transactions
contemplated by this Agreement and before and after giving effect to each Loan, each Loan Party is,
and the Loan Parties on a consolidated basis are, Solvent.

(t) Investment Company Act. None of the Loan Parties is (i) an “investment company”
or an “affiliated person” or “promoter” of, or “principal underwriter” of or for, an “investment
company”, as such terms are defined in the Investment Company Act of 1940, as amended, or (ii)
subject to regulation under any Requirement of Law that limits in any respect its ability to incur
Indebtedness or which may otherwise render all or a portion of the Obligations unenforceable.

(u) Employee and Labor Matters. As of the Effective Date, there is (i) no unfair
labor practice complaint pending or, to the best knowledge of any Loan Party, threatened against
any Loan Party before any Governmental Authority and no grievance or arbitration proceeding pending
or threatened against any Loan Party which arises out of or under any collective bargaining
agreement, (ii) no strike, labor dispute, slowdown, stoppage or similar action or grievance pending
or threatened against any Loan Party or (iii) to the best knowledge of each Loan Party, no union
representation question existing with respect to the employees of any Loan Party and no union
organizing activity taking place with respect to any of the employees of any Loan Party. No Loan
Party or any of its ERISA Affiliates has incurred any liability or obligation under the Worker
Adjustment and Retraining Notification Act (“WARN”) or similar state law, which remains
unpaid or unsatisfied. The hours worked and payments made to employees of any Loan Party have not
been in violation of the Fair Labor Standards Act or any other applicable legal requirements,
except to the extent such violations could not, individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect. All material payments due from any Loan Party on
account of wages and
employee health and welfare insurance and other benefits have been paid or accrued as a
liability on the books of such Loan Party, except where the failure to do so could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

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(v) Acquisition Agreement. The Parent has delivered to the Lenders a complete and
correct copy of the Acquisition Agreement, including all schedules and exhibits thereto, and the
other Acquisition Documents. The Acquisition Documents set forth the entire agreement and
understanding of the parties thereto relating to the subject matter thereof, and there are no other
agreements, arrangements or understandings, written or oral, relating to the matters covered
thereby. The execution, delivery and performance of each Acquisition Document has been duly
authorized by all necessary action (including, without limitation, the obtaining of any consent of
stockholders or other holders of Capital Stock required by law or by any applicable Governing
Document) on the part of each such Person. No authorization or approval or other action by, and no
notice to filing with or license from, any Governmental Authority is required for such sale other
than such as have been obtained on or prior to the Effective Date. Each Acquisition Document is
the legal, valid and binding obligation of the parties thereto, enforceable against such parties in
accordance with its terms. All conditions precedent to the Acquisition Agreement have been
fulfilled or (with the prior written consent of the Lenders) waived, no material provision of any
Acquisition Document has been amended or otherwise modified, and there has been no breach of any
material term or condition of the Acquisition Agreement.

ARTICLE VI

COVENANTS OF THE LOAN PARTIES

Section 6.01 Affirmative Covenants. So long as any principal of or interest on any
Loan or any other Obligation (whether or not due) shall remain unpaid, each Loan Party will, unless
the Required Lenders shall otherwise consent in writing:

(a) Reporting Requirements. Furnish to each Lender:

(i) as soon as available and in any event within 50 days after the end of the first 3 fiscal
quarters of the Borrower and its Subsidiaries and 90 days after the end of the fourth fiscal
quarter of the Borrower and its Subsidiaries commencing with the first fiscal quarter of the
Borrower and its Subsidiaries ending after the Effective Date, consolidated balance sheets,
consolidated statements of operations and retained earnings and consolidated statements of cash
flows of the Borrower and its Subsidiaries as at the end of such quarter, and for the period
commencing at the end of the immediately preceding Fiscal Year and ending with the end of such
quarter, setting forth in each case in comparative form the figures for the corresponding date or
period of the immediately preceding Fiscal Year beginning with the fiscal quarter ending September
30, 2012, all in reasonable detail and certified by an Authorized Officer of the Parent as fairly
presenting, in all material respects, the financial position of the Borrower and its Subsidiaries
as of the end of such quarter and the results of operations and cash flows of the Borrower and its
Subsidiaries for such quarter, in accordance with GAAP applied in a manner consistent with that of
the most recent audited financial statements of the Borrower and its Subsidiaries furnished to the
Lenders, subject to normal year-end adjustments;

(ii) as soon as available, and in any event within 90 days after the end of each Fiscal Year
of the Borrower and its Subsidiaries, consolidated and consolidating balance sheets, consolidated
and consolidating statements of operations and retained earnings and consolidated statements of
cash flows of the Borrower and its Subsidiaries as at the end of such Fiscal Year, setting forth in
each case in comparative form the corresponding figures for the immediately preceding Fiscal Year
beginning with the Fiscal Year ending December 31, 2012 in the case of consolidated financial
statements and December 31, 2013 in the case of consolidating financial statements, all in
reasonable detail and prepared in accordance with GAAP, and accompanied by a report and an
unqualified opinion, prepared in accordance with generally accepted auditing standards, of
independent certified public accountants of recognized standing selected by the Borrower and
reasonably satisfactory to the Lenders (which opinion shall be without (A) a “going concern” or
like qualification or exception, (B) any qualification or exception as to the scope of such audit,
or (C) any qualification which relates to the treatment or classification of any item and which, as
a condition to the removal of such qualification, would require an adjustment to such item, the
effect of which would be to cause any noncompliance with the provisions of Section 6.03);

 

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(iii) simultaneously with the delivery of the financial statements of the Borrower and its
Subsidiaries required by clauses (i) and (ii) of this Section 6.01(a), a certificate of an
Authorized Officer of the Borrower (A) stating that such Authorized Officer has reviewed the
provisions of this Agreement and the other Loan Documents and has made or caused to be made under
his or her supervision a review of the condition and operations of the Borrower and its
Subsidiaries during the period covered by such financial statements with a view to determining
whether the Borrower and its Subsidiaries were in compliance with all of the provisions of this
Agreement and such Loan Documents at the times such compliance is required hereby and thereby, and
that such review has not disclosed, and such Authorized Officer has no knowledge of, the existence
during such period of an Event of Default or Default or, if an Event of Default or Default existed,
describing the nature and period of existence thereof and the action which the Borrower and its
Subsidiaries propose to take or have taken with respect thereto and (B) attaching a schedule
showing all Dispositions subject to Section 6.02(c)(ii)(F) during such period and since the
Effective Date and the calculations specified in Section 6.03;

(iv) (A) as soon as available and in any event not later than 60 days after the end of each
Fiscal Year, financial projections consisting of consolidated balance sheets, consolidated
statements of operations and retained earnings and consolidated statements of cash flows of the
Borrower and its Subsidiaries, prepared on a monthly basis and otherwise in form and substance
satisfactory to the Lenders, for the immediately succeeding Fiscal Year for the Borrower and its
Subsidiaries and prepared on an annual basis for the next 2 Fiscal Years thereafter, all such
financial projections to be reasonable, to be prepared on a reasonable basis and in good faith, and
to be based on assumptions believed by the Borrower to be reasonable at the time made and from the
best information then available to the Borrower;

(v) promptly after submission to any Governmental Authority, all material documents and
information furnished to such Governmental Authority in connection with any investigation of any
Loan Party;

(vi) as soon as possible, and in any event within 3 Business Days after the occurrence of an
Event of Default or Default or the occurrence of any event or development that could reasonably be
expected to have a Material Adverse Effect, the written statement of an Authorized Officer of the
Borrower setting forth the details of such Event of Default or Default or other event or
development having a Material Adverse Effect and the action which the affected Loan Party proposes
to take with respect thereto;

(vii) (A) as soon as possible and in any event within 10 days after any Loan Party or any
ERISA Affiliate thereof knows or has reason to know that (1) any Reportable Event with respect to
any Employee Plan has occurred, (2) any other Termination Event with respect to any Employee Plan
has occurred, or (3) an accumulated funding deficiency has been incurred or an application has been
made to the Secretary of the Treasury for a waiver or modification of the minimum funding standard
(including installment payments) or an extension of any amortization period under Section 412 of
the Internal Revenue Code with respect to an Employee Plan, a statement of an Authorized Officer of
the Borrower setting forth the details of such occurrence and the action, if any, which such Loan
Party or such ERISA Affiliate proposes to take with respect thereto, (B) promptly and in any event
within three days after receipt thereof by any Loan Party or any ERISA Affiliate thereof from the
PBGC, copies of each notice received by any Loan Party or any ERISA Affiliate thereof of the PBGC’s
intention to terminate any Plan or to have a trustee appointed to administer any Plan, (C) promptly
and in any event within 10 days after the filing thereof with the Internal Revenue Service if
requested by the Collateral Agent or any Lender, copies of each Schedule B (Actuarial Information)
to the annual report (Form 5500 Series) with respect to each Employee Plan and Multiemployer Plan,
(D) promptly and in any event within 10 days after any Loan Party or any ERISA Affiliate thereof
knows or has reason to know that a required installment within the meaning of Section 412 of the
Internal Revenue Code has not been made when due with respect to an Employee Plan, (E) promptly and
in any event within 3 days after receipt thereof by any Loan Party or any ERISA Affiliate thereof
from a sponsor of a Multiemployer Plan or from the PBGC, a copy of each notice received by any Loan
Party or any ERISA Affiliate thereof concerning the imposition or amount of withdrawal liability
under Section 4202 of ERISA or indicating that such Multiemployer Plan may enter reorganization
status under Section 4241 of ERISA, and (F) promptly and in any event within 10 days after any Loan
Party or any ERISA Affiliate thereof sends notice of a plant closing or mass layoff (as defined in
WARN) to employees, copies of each such notice sent by such Loan Party or such ERISA Affiliate
thereof;

 

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(viii) promptly after the commencement thereof but in any event not later than 5 days after
service of process with respect thereto on, or the obtaining of knowledge thereof by, any Loan
Party, notice of each action, suit or proceeding before any court or other Governmental Authority
or other regulatory body or any arbitrator which could reasonably be expected to have a Material
Adverse Effect;

(ix) promptly after the sending or filing thereof, copies of all statements, reports and other
information any Loan Party sends to any holders of its Indebtedness or its securities or files with
the SEC or any national (domestic or foreign) securities exchange;

(x) promptly upon receipt thereof, copies of all financial reports (including, without
limitation, management letters), if any, submitted to any Loan Party by its auditors in connection
with any annual or interim audit of the books thereof; and

(xi) promptly upon request, such other information concerning the condition or operations,
financial or otherwise, of any Loan Party as the Collateral Agent or any Lender may from time to
time reasonably request.

(b) Additional Guaranties and Collateral Security. Cause:

(i) each Subsidiary of any Loan Party (other than a Special Purpose Subsidiary formed and used
in a Permitted Securitization Transaction for the purpose of financing working capital) not in
existence on the Effective Date to execute and deliver to the Collateral Agent promptly and in any
event within 3 days after the formation, acquisition or change in status thereof (A) a Joinder
Agreement, pursuant to which such Subsidiary shall be made a party to this Agreement as a
Guarantor, (B) a supplement to the Security Agreement, together with (1) certificates evidencing
all of the Capital Stock of any Person owned by such Subsidiary, (2) undated stock powers executed
in blank with signature guaranteed, and (3) such opinions of counsel as the Required Lenders may
reasonably request,, (C) if such Subsidiary has any Subsidiaries, a Pledge Agreement together with
(x) certificates evidencing all of the Capital Stock of any Person owned by such Subsidiary, (y)
undated stock powers executed in blank with signature guaranteed, and (z) such opinion of counsel
and such approving certificate of such Subsidiary as the Collateral Agent and the Required Lenders
may reasonably request in respect of complying with any legend on any such certificate or any other
matter relating to such shares, (D) within 90 days thereafter, to the extent any real property of
such Subsidiary meets the dollar thresholds set forth in Section 6.01(l), one or more Mortgages
creating on such real property a perfected, first priority Lien on such real property, a Title
Insurance Policy covering such real property, a current ALTA survey thereof and a surveyor’s
certificate, each in form and substance satisfactory to the Required Lenders, together with such
other agreements, instruments and documents as the Required Lenders may require whether comparable
to the documents required under Section 6.01(l) or otherwise, and (E) such other agreements,
instruments, approvals, legal opinions or other documents reasonably requested by the Collateral
Agent or the Required Lenders in order to create, perfect, establish the first priority of or
otherwise protect any Lien purported to be covered by any such Security Agreement, Pledge Agreement
or Mortgage or otherwise to effect the intent that such Subsidiary shall become bound by all of the
terms, covenants and agreements contained in the Loan Documents and that all property and assets of
such Subsidiary shall become Collateral for the Obligations; and

(ii) each owner of the Capital Stock of any such Subsidiary to execute and deliver promptly
and in any event within 3 days after the formation or acquisition of such Subsidiary a Pledge
Agreement, together with (A) certificates evidencing all of the Capital Stock of such Subsidiary,
(B) undated stock powers or other appropriate instruments of assignment executed in blank with
signature guaranteed, (C) such opinion of counsel and such approving certificate of such Subsidiary
as the Collateral Agent or the Required Lenders may reasonably request in respect of complying with
any legend on any such certificate or any other matter relating to such shares and (D) such other
agreements, instruments, approvals, legal opinions or other documents reasonably requested by the
Collateral Agent or the Required Lenders.

(c) Compliance with Laws, Etc. Except to the extent such failure to comply, either
individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect, comply, and cause each of its Subsidiaries to comply in all respects with all Requirements
of Law (not including Environmental Laws which are addressed in Section 6.01(j)), judgments and
awards (including any settlement of any claim that, if
breached, could give rise to any of the foregoing), such compliance to include, without
limitation, (i) paying before the same become delinquent all taxes, assessments and governmental
charges or levies imposed upon it or upon its income or profits or upon any of its properties, and
(ii) paying all lawful claims which if unpaid might become a Lien or charge upon any of its
properties, except to the extent contested in good faith by proper proceedings which stay the
imposition of any penalty, fine or Lien resulting from the non-payment thereof and with respect to
which adequate reserves have been set aside for the payment thereof in accordance with GAAP.

 

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(d) Preservation of Existence, Etc. (i) Maintain and preserve, and cause each of its
Subsidiaries to maintain and preserve, its existence, rights and privileges, and (ii) become or
remain, and cause each of its Subsidiaries to become or remain, duly qualified and in good standing
in each jurisdiction in which the failure to do so could reasonably be expected to have a Material
Adverse Effect.

(e) Keeping of Records and Books of Account. Keep, and cause each of its Subsidiaries
to keep, adequate records and books of account, with complete entries made to permit the
preparation of financial statements in accordance with GAAP.

(f) Inspection Rights. (i) Permit, and cause each of its Subsidiaries to permit, the
agents and representatives of the Collateral Agent or any Lender at any time and from time to time
during normal business hours, and (so long as no Default or Event of Default exists), with
reasonable prior notice, at the expense of the Borrower, to examine and make copies of and
abstracts from its records and books of account, to visit and inspect its properties, to verify
materials, leases, notes, accounts receivable, deposit accounts and its other assets, to conduct
audits, physical counts, valuations, appraisals or examinations and to discuss its affairs,
finances and accounts with any of its directors, officers, managerial employees, independent
accountants or any of its other representatives, and (ii) pay upon demand the reasonable costs and
expenses of the Collateral Agent and the Lenders in connection with all visits, audits,
inspections, valuations, appraisals and field examinations (including the cost of all visits,
audits, inspections, valuations, appraisals and field examinations conducted by a third party on
behalf of the Collateral Agent and the Lenders), provided that so long as no Default or
Event of Default has occurred and is continuing, the Borrower shall not be required to reimburse
the Collateral Agent and the Lenders for more than two (2) field examinations and one (1) Appraisal
during any calendar year. In furtherance of the foregoing, each Loan Party hereby authorizes its
independent accountants, and the independent accountants of each of its Subsidiaries, to discuss
the affairs, finances and accounts of such Person (independently or together with representatives
of such Person) with the agents and representatives of the Collateral Agent or any Lender in
accordance with this Section 6.01(f).

(g) Maintenance of Properties, Etc. Maintain and preserve, and cause each of its
Subsidiaries to maintain and preserve, all of its properties which are necessary or useful in the
proper conduct of its business in good working order and condition, ordinary wear and tear
excepted, and comply, and cause each of its Subsidiaries to comply, at all times with the
provisions of all leases to which it is a party as lessee or under which it occupies property, so
as to prevent any loss or forfeiture thereof or thereunder, except in each case to the extent the
failure to do so, either individually or in the aggregate, could not reasonably be expected to have
a Material Adverse Effect.

(h) Maintenance of Insurance. Maintain, and cause each of its Subsidiaries to
maintain, insurance with responsible and reputable insurance companies or associations (including,
without limitation, comprehensive general liability, hazard, rent and business interruption
insurance) with respect to its properties (including all real properties leased or owned by it) and
business, in such amounts and covering such risks as is required by any Governmental Authority
having jurisdiction with respect thereto or as is carried generally in accordance with sound
business practice by companies in similar businesses similarly situated and in any event in amount,
adequacy and scope reasonably satisfactory to the Collateral Agent and the Required Lenders. All
policies covering the Collateral are to be made payable to the Collateral Agent for the benefit of
the Lenders, as its interests may appear, in case of loss, under a standard non-contributory
“lender” or “secured party” clause and are to contain such other provisions as the Collateral Agent
or the Required Lenders may require to fully protect the Lenders’ interest in the Collateral and to
any payments to be made under such policies. All certificates of insurance are to be delivered to
the Collateral Agent and the policies are to be premium prepaid, with the loss payable and
additional insured endorsement in favor of the Collateral Agent and such other Persons as the
Collateral Agent may designate from time to time, and shall provide for not less than 30 days’
prior written notice to the Collateral Agent of the exercise of any right of cancellation. If any
Loan Party or any of its Subsidiaries fails to maintain such insurance, the
Collateral Agent or any Lender may arrange for such insurance, but at the Borrower’s expense
and without any responsibility on the Collateral Agent’s or such Lender’s part for obtaining the
insurance, the solvency of the insurance companies, the adequacy of the coverage, or the collection
of claims. Upon the occurrence and during the continuance of an Event of Default, the Collateral
Agent shall have the sole right, in the name of the Lenders, any Loan Party and its Subsidiaries,
to file claims under any insurance policies, to receive, receipt and give acquittance for any
payments that may be payable thereunder, and to execute any and all endorsements, receipts,
releases, assignments, reassignments or other documents that may be necessary to effect the
collection, compromise or settlement of any claims under any such insurance policies.

 

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(i) Obtaining of Permits, Etc. Obtain, maintain and preserve, and cause each of its
Subsidiaries to obtain, maintain and preserve, and take all necessary action to timely renew, all
permits, licenses, authorizations, approvals, entitlements and accreditations which are necessary
or useful in the proper conduct of its business, except to the extent the failure to do so, either
individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect.

(j) Environmental. (i) Keep any property either owned or operated by it or any of
its Subsidiaries free of any Environmental Liens except Permitted Liens; (ii) comply, and cause
each of its Subsidiaries to comply, in all material respects with Environmental Laws and provide to
the Collateral Agent and the Lenders any documentation of such compliance which the Collateral
Agent or any Lender may reasonably request, except as any such compliance circumstance could not
reasonably be expected to have a Material Adverse Effect; (iii) provide the Collateral Agent and
the Lenders written notice within five (5) days of any Release of a Hazardous Material in excess of
any reportable quantity from or onto property at any time owned or operated by it or any of its
Subsidiaries but only to the extent that such release is could reasonably be expected to result in
a Material Adverse Effect, and take any Remedial Actions required to comply with Environmental Laws
or by Governmental Authority to abate said Release; and (iv) provide the Collateral Agent and the
Lenders with written notice of any of the following to the extent that such could reasonably be
expected to have a Material Adverse Effect within ten (10) days of the determination that the
following could reasonably be expected to have a Material Adverse Affect: (A) notice that an
Environmental Lien has been filed against any property of any Loan Party or any of its
Subsidiaries; (B) commencement of any Environmental Action or notice that an Environmental Action
will be filed against any Loan Party or any of its Subsidiaries; and (C) notice of a violation,
citation or other administrative order.

(k) Further Assurances. Take such action and execute, acknowledge and deliver, and
cause each of its Subsidiaries to take such action and execute, acknowledge and deliver, at its
sole cost and expense, such agreements, instruments or other documents as the Collateral Agent or
any Lender may reasonably require from time to time in order (i) to carry out more effectively the
purposes of this Agreement and the other Loan Documents, (ii) to subject to valid and perfected
first priority Liens any of the Collateral or any other property of any Loan Party and its
Subsidiaries, (iii) to establish and maintain the validity and effectiveness of any of the Loan
Documents and the validity, perfection and priority of the Liens intended to be created thereby,
and (iv) to better assure, convey, grant, assign, transfer and confirm unto the Collateral Agent
and each Lender the rights now or hereafter intended to be granted to it under this Agreement or
any other Loan Document. In furtherance of the foregoing, to the maximum extent permitted by
applicable law, each Loan Party (i) authorizes the Collateral Agent to execute any such agreements,
instruments or other documents in such Loan Party’s name and to file such agreements, instruments
or other documents in any appropriate filing office, (ii) authorizes the Collateral Agent to file
any financing statement required hereunder or under any other Loan Document, and any continuation
statement or amendment with respect thereto, in any appropriate filing office without the signature
of such Loan Party, and (iii) ratifies the filing of any financing statement, and any continuation
statement or amendment with respect thereto, filed without the signature of such Loan Party prior
to the date hereof.

(l) After Acquired Real Property. Upon the acquisition by it or any of its
Subsidiaries after the date hereof of any interest (whether fee or leasehold) in any real property
(wherever located) (each such interest being an “After Acquired Property”) (x) with a
Current Value (as defined below) in excess of $1,000,000 in the case of a fee interest, or (y)
requiring the payment of annual rent exceeding in the aggregate $200,000 in the case of leasehold
interest, promptly so notify the Collateral Agent and each Lender, setting forth with specificity a
description of the interest acquired, the location of the real property, any structures or
improvements thereon and either an appraisal or such Loan Party’s good-faith estimate of the
current value of such real property (for purposes of this Section, the “Current Value”).
The Collateral Agent or the Required Lenders shall notify such Loan
Party whether they intend to require

 

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 a Mortgage and the other documents referred to below or in the
case of leasehold, a leasehold Mortgage or landlord’s waiver. Upon receipt of such notice
requesting a Mortgage, the Person which has acquired such After Acquired Property shall, as soon as
practicable but in any event within 90 days thereafter, furnish to the Collateral Agent the
following, each in form and substance satisfactory to the Required Lenders: (i) a Mortgage with
respect to such real property and related assets located at the After Acquired Property, each duly
executed by such Person and in recordable form; (ii) evidence of the recording of the Mortgage
referred to in clause (i) above in such office or offices as may be necessary or, in the opinion of
the Collateral Agent or the Required Lenders, desirable to create and perfect a valid and
enforceable first priority lien (subject to Permitted Liens having priority as a matter of
applicable law) on the property purported to be covered thereby or to otherwise protect the rights
of the Collateral Agent and the Lenders thereunder, (iii) a Title Insurance Policy, (iv) a survey
of such real property, certified to the Collateral Agent and to the issuer of the Title Insurance
Policy by a licensed professional surveyor reasonably satisfactory to the Collateral Agent and the
Required Lenders, (v) Phase I Environmental Site Assessments with respect to such real property,
certified to the Collateral Agent by a company reasonably satisfactory to the Collateral Agent and
the Required Lenders, (vi) in the case of a leasehold interest, a certified copy of the lease
between the landlord and such Person with respect to such real property in which such Person has a
leasehold interest, (vii) in the case of a leasehold interest, an attornment and nondisturbance
agreement between the landlord (and any fee mortgagee, if requested by the Collateral Agent or the
Required Lenders) with respect to such real property and the Collateral Agent, and (viii) such
other documents or instruments (including guarantees and opinions of counsel) as the Collateral
Agent or the Required Lenders may reasonably require. The Borrower shall pay all fees and
expenses, including reasonable attorneys’ fees and expenses, and all title insurance charges and
premiums, in connection with each Loan Party’s obligations under this Section 6.01(l).

(m) Fiscal Year. Commencing with the Fiscal Year ending 2011, cause the Fiscal Year
of the Borrower and its Subsidiaries to end on December 31 of each calendar year.

(n) Tax Refunds. If the Parent receives a tax refund that is reasonably attributable
to the Borrower, the Borrower shall either (i) offset any amounts owing to the Parent (other than
any amounts in respect of the Subordinated Borrower Indebtedness or any other Subordinated
Indebtedness) against such tax refund, or (ii) upon receipt of such funds from the Parent, deposit
such funds into a deposit account maintained with a Lender, which funds may be used by the Borrower
in the ordinary course of business.

(o) Post Closing Matters. Execute and deliver the documents and complete the tasks
set forth on Schedule 6.01(o) within the time limits specified therein, except to the
extent otherwise agreed by the Required Lenders.

(p) 2014 Turnaround.

(i) Provide to the Lenders by the earlier of (A) nine (9) months prior to the contemplated
commencement date of the 2014 Turnaround or (B) December 31, 2013, a financial plan (the “2014
Plan”), in form and substance reasonably satisfactory to the Required Lenders, setting forth
the estimated costs of the 2014 Turnaround (collectively, the “2014 Expenditures”),
including, without limitation, estimated sources for payment of the 2014 Expenditures, a cash flow
forecast (which shall include a certification that the 2014 Plan has been prepared in good faith
based on assumptions believed by the Borrower to be reasonable and can reasonably be expected to
satisfy all 2014 Expenditures required to effect the 2014 Turnaround) and the proposed timeline for
the 2014 Expenditures;

(ii) if any Lender elects, in its sole discretion, to retain on behalf of the Lenders a
technical consultant for advice about the engineering and other issues relating to the 2014
Turnaround, including, without limitation, the 2014 Plan and the 2014 Expenditures, pay on demand
the reasonable fees, costs and expenses of such consultant; provided, however, the Lenders shall
engage no more than one (1) such consultant, which consultant’s analysis will be made available to
all Lenders;

(iii) if the Required Lenders notify the Borrower in writing that the 2014 Plan is not in
their commercially reasonable judgment sufficient, the Borrower agrees to effect such changes as
the Required Lenders may reasonably request until the 2014 Plan has been approved by the Required
Lenders (which approval shall not be unreasonably withheld or delayed), but in any case within 30
days after the Borrower receives
any such notice from the Required Lenders (or such longer period as may be reasonably
required, so long as the Borrower is diligently pursuing such changes);

 

36

 

(iv) if the 2014 Plan contemplates the incurrence of Indebtedness (including, without
limitation, Indebtedness associated with the release of existing liens on the fixed assets of Delek
Refining) or an investment in the Capital Stock of the Borrower by the Parent, as soon as available
and in any event not less than 90 days prior to the proposed commencement date of the 2014
Turnaround, provide to the Lenders any proposal letter, commitment letter (including, without
limitation, any equity commitment), credit agreement and other similar agreements, instruments and
other documents with respect to such Indebtedness or investment, in each case in form and substance
reasonably satisfactory to the Required Lenders (it being understood that the provisions of this
subsection (iv) shall not be deemed to be implied consent to any such issuance or incurrence
otherwise prohibited by the terms and conditions of this Agreement);

(v) complete the 2014 Turnaround and the 2014 Plan substantially in accordance with the terms
thereof; and

(vi) keep the Lenders informed of all material developments with respect to the 2014
Turnaround and the 2014 Plan and provide the Lenders such other information with respect thereto as
any Lender may reasonably request.

Section 6.02 Negative Covenants. So long as any principal of or interest on any Loan
or any other Obligation (whether or not due) shall remain unpaid, each Loan Party shall not, unless
the Required Lenders shall otherwise consent in writing:

(a) Liens, Etc. Create, incur, assume or suffer to exist, or permit any of its
Subsidiaries to create, incur, assume or suffer to exist, any Lien upon or with respect to any of
its properties, whether now owned or hereafter acquired; file or suffer to exist under the Uniform
Commercial Code or any similar law or statute of any jurisdiction, a financing statement (or the
equivalent thereof) that names it or any of its Subsidiaries as debtor; sign or suffer to exist any
security agreement authorizing any secured party thereunder to file such financing statement (or
the equivalent thereof); sell any of its property or assets subject to an understanding or
agreement, contingent or otherwise, to repurchase such property or assets (including sales of
accounts receivable) with recourse to it or any of its Subsidiaries or assign or otherwise
transfer, or permit any of its Subsidiaries to assign or otherwise transfer, any account or other
right to receive income; other than, as to all of the above, Permitted Liens.

(b) Indebtedness. Create, incur, assume, guarantee or suffer to exist, or otherwise
become or remain liable with respect to, or permit any of its Subsidiaries to create, incur,
assume, guarantee or suffer to exist or otherwise become or remain liable with respect to, any
Indebtedness other than Permitted Indebtedness.

(c) Fundamental Changes; Dispositions. Wind-up, liquidate or dissolve, or merge,
consolidate or amalgamate with any Person, or convey, sell, lease or sublease, transfer or
otherwise dispose of, whether in one transaction or a series of related transactions, all or any
part of its business, property or assets, whether now owned or hereafter acquired (or agree to do
any of the foregoing), or purchase or otherwise acquire, whether in one transaction or a series of
related transactions, all or substantially all of the assets of any Person (or any division
thereof) (or agree to do any of the foregoing), or permit any of its Subsidiaries to do any of the
foregoing; provided, however, that

(i) any wholly-owned Subsidiary Guarantor of any Loan Party (other than the Borrower) may be
merged into such Loan Party or another wholly-owned Subsidiary Guarantor of such Loan Party, or may
consolidate with another wholly-owned Subsidiary Guarantor of such Loan Party, including without
limitation, mergers necessary to reorganize the Loan Parties in Delaware, so long as (A) no other
provision of this Agreement would be violated thereby, (B) such Loan Party gives the Collateral
Agent at least 30 days’ prior written notice of such merger or consolidation, (C) no Default or
Event of Default shall have occurred and be continuing either before or after giving effect to such
transaction, (D) the Lenders’ rights in any Collateral, including, without limitation, the
existence, perfection and priority of any Lien thereon, are not adversely affected by such merger
or consolidation and (E) the surviving Subsidiary, if any, is joined as a Loan Party hereunder
pursuant to a Joinder Agreement and a Security Agreement and the Capital Stock of which Subsidiary
is the subject of a Security
Agreement, in each case, which is in full force and effect on the date of and immediately
after giving effect to such merger or consolidation;

 

37

 

(ii) any Loan Party and its Subsidiaries may (A) sell inventory in the ordinary course of
business, (B) sell inventory and Accounts Receivable in connection with the financing of its
working capital (to the extent such Indebtedness is permitted hereunder), including all crude oil,
refined petroleum products and other hydrocarbon inventory from time to time owned by Borrower or
its Subsidiaries that is sold in accordance with the terms of the J. Aron Supply and Offtake
Agreement, (C) transfer personal property among Loan Parties, provided that the Borrower
shall provide to the Lenders at least ten Business Days’ prior written notice of any such transfer
of noncash Collateral and shall take all actions reasonably required by the Lenders (including,
without limitation, any actions that would otherwise be required by Section 6.01(b) (as though such
transferee were a new Subsidiary) and Section 6.01(l)(as though such transferred assets constituted
after acquired property) so that such transfer shall not adversely affect in any respect the
creation, perfection or priority of the Collateral Agent’s Liens therein, (D) enter into a
Disposition that constitutes a Restricted Payment permitted by Section 6.02(g) or a Permitted
Investment, (E) dispose of obsolete or worn-out equipment in the ordinary course of business, and
(F) sell or otherwise dispose of other property or assets for cash in an aggregate amount not less
than the fair market value of such property or assets, provided that the Net Cash Proceeds
of such Dispositions (x) in the case of clause (F) above, do not exceed $100,000,000 in the
aggregate for all such Dispositions since the Effective Date, and (y) in all cases, are paid to the
Lenders to the extent required by the terms of Section 2.05(c)(i), and provided further
that (I) in the case of any Disposition in clause (F) above involving consideration in excess of
$5,000,000, at least five Business Days prior to the date of completion of such Disposition, the
Borrower shall have delivered to the Lenders an officer’s certificate of an Authorized Officer,
which certificate shall contain a description of the proposed transaction, the date such
transaction is scheduled to be consummated, the estimated sale price or other consideration for
such transaction, and a certification that no Default or Event of Default has occurred and is
continuing, or would result from the consummation of such transaction and no Material Adverse
Effect could reasonably be expected to result from such Disposition. In no event shall this
subsection be construed to permit the sale or other disposition of the crude oil refinery (the
“El Dorado Refinery”) of the Borrower located in El Dorado, Arkansas (it being understood
that this sentence shall not restrict the sale of equipment, pipelines or storage terminals
comprising a part of the El Dorado Refinery, subject to the other limitations of this paragraph);
and

(iii) the Borrower or any Subsidiary may enter into a merger the sole purpose of which is to
reincorporate or reorganize such Loan Party in the State of Delaware, so long as (A) no other
provision of this Agreement would be violated thereby, (B) such Loan Party gives the Lenders at
least 30 days’ prior written notice of such merger or consolidation, (C) no Default or Event of
Default shall have occurred and be continuing either before or after giving effect to such
transaction, (D) the Lenders’ rights in any Collateral, including, without limitation, the
existence, perfection and priority of any Lien thereon, are not adversely affected by such merger,
(E) if such merger involves the Borrower, the Borrower shall be the surviving entity, (F) if such
merger involves the Borrower, the Required Lenders shall have consented to such merger, and (G) the
surviving Subsidiary, if any, is joined as a Loan Party hereunder pursuant to a Joinder Agreement
and a Security Agreement and the Capital Stock of which Subsidiary is the subject of a Security
Agreement, in each case, which is in full force and effect on the date of and immediately after
giving effect to such merger.

(d) Change in Nature of Business. Make, or permit any of its Subsidiaries to make,
any change in the nature of its business as described in Section 5.01(l).

(e) Loans, Advances, Investments, Etc. Make or commit or agree to make any loan,
advance guarantee of obligations, other extension of credit or capital contributions to, or hold or
invest in or commit or agree to hold or invest in, or purchase or otherwise acquire or commit or
agree to purchase or otherwise acquire any shares of the Capital Stock, bonds, notes, debentures or
other securities of, or make or commit or agree to make any other investment in, any other Person,
or purchase or own any futures contract or otherwise become liable for the purchase or sale of
currency or other commodities at a future date in the nature of a futures contract, or permit any
of its Subsidiaries to do any of the foregoing, except for: (i) investments existing on the date
hereof, as set forth on Schedule 6.02(e) hereto, but not any increase in the amount thereof as set
forth in such Schedule or any other modification of the terms thereof, (ii) loans and advances by
it to its Subsidiaries Guarantors and by such Subsidiary Guarantors to it and other Subsidiary
Guarantors, made in the ordinary course of business, (iii) investments in any Subsidiary Guarantor;
(iv) trade credit extended on usual

 

38

 

and
customary terms in the ordinary course of business, (v) (A) payroll, travel and similar advances to cover matters that are expected at the time of
such advances ultimately to be treated as expenses for accounting purposes and that are made in the
ordinary course of business, and (B) loans and advances to employees made in the ordinary course of
business in compliance with applicable laws and consistent with past practices of the Borrower or
its Subsidiaries, as the case may be, provided that the aggregate amount of such loans and
advances do not exceed $500,000 at any one time outstanding, (vi) stock, obligations or other
securities received in settlement of amounts due to any Loan Party or any of its Subsidiaries
effected in the ordinary course of business or owing to any Loan Party or any of its Subsidiaries
as a result of Insolvency Proceedings involving an account debtor or upon the foreclosure or
enforcement of any Lien in favor of any Loan Party or any of its Subsidiaries, (vii) investments
resulting from Hedging Agreements entered into in the ordinary course of business, other than for
speculative purposes, and (viii) Permitted Investments.

(f) Growth Capital Expenditures. Make or commit or agree to make, or permit any of
its Subsidiaries to make or commit or agree to make, any Growth Capital Expenditure (by purchase or
Capitalized Lease) that would cause the aggregate amount of all Growth Capital Expenditures made by
the Loan Parties and their Subsidiaries to exceed $15,000,000 in any Fiscal Year (the “Growth
Capital Expenditure Limitation”); provided, that if at the end of any Fiscal Year, the
Growth Capital Expenditure Limitation for such Fiscal Year exceeds the aggregate amount of Growth
Capital Expenditures made or incurred by the Borrower and its Subsidiaries during such Fiscal Year
(the amount of such excess being referred to herein as the “Excess Amount”), then the
Excess Amount may be carried forward to the next succeeding Fiscal Year, it being understood that
any unused Excess Amounts may be carried forward (to the extent not used) to succeeding Fiscal
Years without limitation.

(g) Restricted Payments. (i) Declare or pay any dividend or other distribution,
direct or indirect, on account of any Capital Stock of any Loan Party or any of its Subsidiaries,
now or hereafter outstanding, (ii) make any repurchase, redemption, retirement, defeasance, sinking
fund or similar payment, purchase or other acquisition for value, direct or indirect, of any
Capital Stock of any Loan Party or any direct or indirect parent of any Loan Party, now or
hereafter outstanding, (iii) make any payment to retire, or to obtain the surrender of, any
outstanding warrants, options or other rights for the purchase or acquisition of shares of any
class of Capital Stock of any Loan Party, now or hereafter outstanding, (iv) return any Capital
Stock to any shareholders or other equity holders of any Loan Party or any of its Subsidiaries, or
make any other distribution of property, assets, shares of Capital Stock, warrants, rights,
options, obligations or securities thereto as such or (v) pay any management fees or any other fees
or expenses (including the reimbursement thereof by any Loan Party or any of its Subsidiaries)
pursuant to any management, consulting or other services agreement to any of the shareholders or
other equityholders of any Loan Party or any of its Subsidiaries or other Affiliates, or to any
other Subsidiaries or Affiliates of any Loan Party; provided, however, that:

(A) any Subsidiary of the Borrower may pay dividends to the Borrower or to another Subsidiary
that is a Loan Party,

(B) subject to the last paragraph of this Section 6.02(g), the Borrower may pay dividends out
of ordinary net earnings of the Borrower and its Subsidiaries from time to time in the ordinary
course of its business, provided that (x) until such time as 30% of the original principal
of the Term Loan has been repaid or prepaid, the aggregate amount of the dividends paid by the
Borrower in any Fiscal Year shall not exceed the lesser of 50% of ordinary net earnings of the
Borrower and its Subsidiaries in the immediately preceding Fiscal Year and $10,000,000, and (y)
after 30% of the original principal of the Term Loan has been repaid or prepaid, in any Fiscal Year
the Borrower may pay dividends out of ordinary net earnings of the Borrower and its Subsidiaries
from time to time, in the ordinary course of its business,

(C) the Borrower may pay management fees to the Parent in an aggregate amount not to exceed
$1,000,000 in any calendar year, so long as both immediately before and after giving effect to such
payment, no Default or Event of Default shall exist;

(D) the Borrower may make payments to purchase or redeem its Capital Stock held by current or
former officers, directors or employees (or their transferees, estates or beneficiaries under their
estates) of Borrower and any of its Subsidiaries, upon their death, disability, retirement,
severance or termination of employment or service; provided, that (I) the aggregate amount
of such payments during any Fiscal Year shall not
exceed $1,000,000, and (II) both immediately before and after giving effect to such payment,
no Default or Event of Default shall exist;

 

39

 

(E) the Borrower may pay dividends or make distributions to the Parent for the sole purpose of
permitting the Parent to pay federal and state income taxes and franchise taxes solely arising from
any Parent Consolidated Tax Return (such payments, “Tax Distributions”); provided
that the aggregate amount of such Tax Distributions shall under no circumstances exceed the amount
that the Loan Parties would have been obligated to pay if the Borrower were the common parent of a
consolidated tax group comprised of the Borrower and each of its Subsidiaries and filed a separate
consolidated tax return, taking into account any carryovers and carrybacks of tax attributes
(including net operating losses) of such Loan Parties; provided further that (x) no
distribution shall be made more than ten (10) Business Days prior to the due date of the amounts to
the applicable taxing authorities, and (y) prior to any Tax Distribution being made, the Borrower
shall deliver to the Lenders a certificate showing (in reasonable detail) how the amount of the
distribution was calculated.

Notwithstanding anything herein to the contrary, in the case of any payments pursuant clauses to
clause (B) above, (1) the Lenders shall have received at least ten Business Days’ prior written
notice, which shall include a certification as to the succeeding clause (2), and (2) both
immediately before and after giving effect to such payment, no Default or Event of Default shall
exist.

(h) Federal Reserve Regulations. Permit any Loan or the proceeds of any Loan under
this Agreement to be used for any purpose that would cause such Loan to be a margin loan under the
provisions of Regulation T, U or X of the Board.

(i) Transactions with Affiliates. Enter into, renew, extend or be a party to, or
permit any of its Subsidiaries to enter into, renew, extend or be a party to, any transaction or
series of related transactions (including, without limitation, the purchase, sale, lease, transfer
or exchange of property or assets of any kind or the rendering of services of any kind) with any
Affiliate, except (i) in the ordinary course of business in a manner and to an extent consistent
with past practice and necessary or desirable for the prudent operation of its business, for fair
consideration and on terms no less favorable to it or its Subsidiaries than would be obtainable in
a comparable arm’s length transaction with a Person that is not an Affiliate thereof, (ii)
transactions with another Loan Party, (iii) transactions permitted by Section 6.02(e) and Section
6.02(g), and (iv) the sale of inventory and Accounts Receivables to a Special Purpose Subsidiary of
the Borrower formed and used in a Permitted Securitization Transaction for the purpose of financing
working capital of the Loan Parties.

(j) Limitations on Dividends and Other Payment Restrictions Affecting Subsidiaries.
Create or otherwise cause, incur, assume, suffer or permit to exist or become effective any
consensual encumbrance or restriction of any kind on the ability of any Subsidiary of any Loan
Party (i) to pay dividends or to make any other distribution on any shares of Capital Stock of such
Subsidiary owned by any Loan Party or any of its Subsidiaries, (ii) to pay or prepay or to
subordinate any Indebtedness owed to any Loan Party or any of its Subsidiaries, (iii) to make loans
or advances to any Loan Party or any of its Subsidiaries or (iv) to transfer any of its property or
assets to any Loan Party or any of its Subsidiaries, or permit any of its Subsidiaries to do any of
the foregoing; provided, however, that nothing in any of clauses (i) through (iv)
of this Section 6.02(j) shall prohibit or restrict compliance with: (A) this Agreement and the
other Loan Documents; (B) any agreements in effect on the date of this Agreement and described on
Schedule 7.02(k); (C) any Requirement of Law; (D) in the case of clause (iv) any agreement setting
forth customary restrictions on the subletting, assignment or transfer of any property or asset
that is a lease, license (including any intellectual property license), conveyance or contract of
similar property or assets; or (E) in the case of clause (iv) any agreement, instrument or other
document evidencing a Permitted Lien from restricting on customary terms the transfer of any
property or assets subject thereto.

(k) Limitation on Issuance of Capital Stock. Issue or sell or enter into any
agreement or arrangement for the issuance and sale by the Borrower of any Disqualified Stock or any
other shares of its Capital Stock, any securities convertible into or exchangeable for its Capital
Stock or any warrants, except to the extent such issuance or sale would not result in a Change of
Control, or permit any of its Subsidiaries to issue or sell or enter into any agreement or
arrangement for the issuance and sale of, any shares of its Capital Stock, any securities
convertible into or exchangeable for its Capital Stock or any warrants. Notwithstanding the
foregoing, any Capital Stock of the
Borrower issued to the Parent or any Affiliate thereof shall be pledged to (i) the Collateral
Agent and the Lenders pursuant to the Pledge Agreement, (ii) IDB to secure the IDB Notes, and (iii)
BLUSA to secure the Leumi Note.

 

40

 

(l) Modifications of Indebtedness, Organizational Documents and Certain Other Agreements;
Etc.

(i) Amend, modify or otherwise change (or permit the amendment, modification or other change
in any manner of) any of the provisions of any of its or its Subsidiaries’ Subordinated
Indebtedness (other than the Subordinated Borrower Indebtedness) or of any instrument or agreement
(including, without limitation, any purchase agreement, indenture, loan agreement or security
agreement) relating to any such Indebtedness if such amendment, modification or change would
shorten the final maturity or average life to maturity of, or require any payment to be made
earlier than the date originally scheduled on, such Indebtedness, would increase the interest rate
applicable to such Indebtedness, would change any subordination provision, if any, of such
Indebtedness, or would otherwise be adverse to the Lenders or the issuer of such Subordinated
Indebtedness in any respect,

(ii) (A) except to the extent permitted by the terms of the Subordination Agreement, amend,
modify or otherwise change (or permit the amendment, modification or other change in any manner of)
any of the provisions of the Subordinated Borrower Note (as in effect on the Effective Date); or
(B) make any payment, prepayment, redemption, defeasance, sinking fund payment or repurchase of any
Subordinated Indebtedness, including any payments or prepayments of principal (including through
any redemption, purchase, defeasance, acquisition, or retirement thereof), premium, fees or
interest in respect thereof in violation of the subordination provisions thereof or any
subordination agreement with respect thereto; provided that the Borrower may make such
payments or prepayments of principal in respect of the Subordinated Borrower Indebtedness to the
extent expressly permitted by the Subordination Agreement to which the Borrower is a party.

(iii) make any voluntary or optional payment, prepayment, redemption, defeasance, sinking fund
payment or other acquisition for value of any of its or its Subsidiaries’ Subordinated Indebtedness
(including, without limitation, by way of depositing money or securities with the trustee therefor
before the date required for the purpose of paying any portion of such Indebtedness when due), or
refund, refinance, replace or exchange any other Subordinated Indebtedness for any such
Subordinated Indebtedness (except to the extent such Indebtedness is otherwise expressly permitted
by the definition of “Permitted Indebtedness”), or make any payment, prepayment, redemption,
defeasance, sinking fund payment or repurchase of any outstanding Indebtedness as a result of any
asset sale, change of control, issuance and sale of debt or equity securities or similar event, or
give any notice with respect to any of the foregoing,

(iv) amend, modify or otherwise change its name, jurisdiction of organization, organizational
identification number or FEIN, except that a Loan Party may (A) change its name, jurisdiction of
organization, organizational identification number or FEIN in connection with a transaction
permitted by Section 6.02(c) and (B) change its name upon at least 30 days’ prior written notice by
the Borrower to the Lenders of such change and so long as, at the time of such written
notification, such Person provides any financing statements or fixture filings necessary to perfect
and continue perfected the Liens of the Collateral Agent,

(v) amend, modify or otherwise change its Governing Documents, including, without limitation,
by the filing or modification of any certificate of designation, or any agreement or arrangement
entered into by it, with respect to any of its Capital Stock (including any shareholders’
agreement), or enter into any new agreement with respect to any of its Capital Stock, except any
such amendments, modifications or changes or any such new agreements or arrangements pursuant to
this clause (iv) that either individually or in the aggregate, could not reasonably be expected to
have a Material Adverse Effect, or

(vi) amend, modify or otherwise change any material provision of the Acquisition Agreement or
the Seller Note.

(m) Investment Company Act of 1940. Engage in any business, enter into any
transaction, use any securities or take any other action or permit any of its Subsidiaries to do
any of the foregoing, that would cause it or any of its Subsidiaries to become subject to the
registration requirements of the Investment Company
Act of 1940, as amended, by virtue of being an “investment company” or a company “controlled”
by an “investment company” not entitled to an exemption within the meaning of such Act.

 

41

 

(n) ERISA. (i) Engage, or permit any ERISA Affiliate to engage, in any transaction
described in Section 4069 of ERISA; (ii) engage, or permit any ERISA Affiliate to engage, in any
prohibited transaction described in Section 406 of ERISA or 4975 of the Internal Revenue Code for
which a statutory or class exemption is not available or a private exemption has not previously
been obtained from the U.S. Department of Labor; (iii) adopt or permit any ERISA Affiliate to adopt
any employee welfare benefit plan within the meaning of Section 3(1) of ERISA which provides
benefits to employees after termination of employment other than as required by Section 601 of
ERISA or applicable law; (iv) fail to make any contribution or payment to any Multiemployer Plan
which it or any ERISA Affiliate may be required to make under any agreement relating to such
Multiemployer Plan, or any law pertaining thereto; or (v) fail, or permit any ERISA Affiliate to
fail, to pay any required installment or any other payment required under Section 412 of the
Internal Revenue Code on or before the due date for such installment or other payment.

Section 6.03 Financial Covenant.

(a) So long as any principal of or interest on any Loan or any other Obligation (whether or
not due) shall remain unpaid, on the date the Borrower and the Lenders receive an Appraisal with
respect to the Specified Fixed Asset Collateral, the Borrower will not permit (i) (A) the aggregate
principal amount of the Term Loan outstanding at any time less (B) the Unrestricted Cash of the
Borrower and its Subsidiaries to exceed (ii) 75% of the Appraised Value of the Specified Fixed
Asset Collateral (the “Loan to Value Requirement”).

(b) If the Borrower fails to comply with the Loan to Value Requirement, until the 60th day
immediately following the date the Borrower and the Lenders receive an Appraisal with respect to
the Specified Fixed Asset Collateral, the Borrower shall have the right to issue Permitted Borrower
Cure Security for cash or otherwise receive cash contributions to the capital of the Borrower (the
“Borrower Equity Cure Right”).

(c) So long as any principal of or interest on any Loan or any other Obligation (whether or
not due) shall remain unpaid, the Borrower will (i) not declare or pay any dividend or other
distribution, direct or indirect, on account of any Permitted Borrower Cure Security, now or
hereafter outstanding, (ii) not make any repurchase, redemption, retirement, defeasance, sinking
fund or similar payment, purchase or other acquisition for value, direct or indirect, of any
Permitted Borrower Cure Security, and (iii) not make any payment, prepayment, redemption,
defeasance, sinking fund payment or repurchase of any Permitted Borrower Cure Security constituting
Subordinated Indebtedness, including any payments or prepayments of principal (including through
any redemption, purchase, defeasance, acquisition, or retirement thereof), premium, fees or
interest in respect thereof in violation of the subordination provisions thereof or any
subordination agreement with respect thereto, except in each case to the extent (A) the
Lenders shall have received a new Appraisal since the Appraisal giving rise to the issuance of such
Permitted Borrower Cure Security, (B) immediately after the payment otherwise restricted by this
subsection (c), the Borrower would be in compliance with Section 6.03(a), (C) the Lenders receive
at least ten Business Days prior written notice of such payment, which shall include a
certification as to clauses (B) and (D), and (D) both immediately before and after giving effect to
such payment, no Default or Event of Default shall exist.

ARTICLE VII

EVENTS OF DEFAULT

Section 7.01 Events of Default. If any of the following Events of Default shall occur
and be continuing:

(a) the Borrower shall fail to pay (i) any principal of any Loan or any fee, indemnity or
other amount payable under this Agreement or any other Loan Document when due (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise) or (ii) any interest on any Loan
or any fee, indemnity or other amount payable under this Agreement or any other Loan Document when
due (whether by scheduled maturity,
required prepayment, acceleration, demand or otherwise) and in the case of this clause (ii)
such failure continues for 3 Business Days;

 

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(b) any representation or warranty made or deemed made by or on behalf of (i) any Credit Party
or by any officer of the foregoing under or in connection with any Acquisition Document or any Loan
Document or under or in connection with any report, certificate, or other document delivered to the
Collateral Agent or any Lender pursuant to any Loan Document, or (ii) the Seller under or in
connection with any Acquisition shall in any case have been incorrect in any material respect when
made or deemed made;

(c) (i) any Loan Party shall fail to perform or comply with any covenant or agreement
contained in Section 6.01(a)(vi), Section 6.01(d)(i), Section 6.01(o), Section 6.02 or Section
6.03, (ii) any Loan Party shall fail to perform or comply with any covenant or agreement contained
in any Security Agreement to which it is a party, any Pledge Agreement to which it is a party or
any Mortgage to which it is a party, in each case subject to applicable grace or cure periods, if
any, or (iii) the Parent Guarantor shall fail to perform or comply with any covenant or agreement
contained in any Loan Document to which it is a party, in each case subject to applicable grace or
cure periods, if any;

(d) any Credit Party shall fail to perform or comply with any other term, covenant or
agreement contained in any Loan Document to be performed or observed by it and, except as set forth
in subsections (a), (b) and (c) of this Section 7.01, such failure, if capable of being remedied,
shall remain unremedied for 30 days after the earlier of the date a senior officer of any Credit
Party becomes aware of such failure and the date written notice of such default shall have been
given by any Lender to such Credit Party;

(e) the Borrower or any of its Subsidiaries shall (i) default in making any payment of any
principal of any Indebtedness (including, without limitation, any Contingent Obligation, but
excluding the Term Loan) on the scheduled or original due date with respect thereto beyond the
period of grace, if any, in the instrument or agreement under which such Indebtedness was created;
or (ii) default in making any payment of any interest on any such Indebtedness beyond the period of
grace, if any, provided in the instrument or agreement under which such Indebtedness was created;
or (iii) default in the observance or performance of any other agreement or condition relating to
any such Indebtedness or contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event shall occur or condition exist, the effect of which default or other
event or condition is to cause, or to permit the holder or beneficiary of such Indebtedness (or a
trustee or agent on behalf of such holder or beneficiary) to cause, with the giving of notice if
required, such Indebtedness to become due prior to its stated maturity or to become subject to a
mandatory offer to purchase by the obligor thereunder or (in the case of any such Indebtedness
constituting a Contingent Obligation) to become payable; provided that a default, event or
condition described in clause (i), (ii) or (iii) of this paragraph (e) shall not at any time
constitute an Event of Default unless, at such time, one or more defaults, events or conditions of
the type described in clauses (i), (ii) and (iii) of this paragraph (e) shall have occurred and be
continuing with respect to Indebtedness the outstanding principal amount of which exceeds in the
aggregate $10,000,000; or

(f) the Parent or any of its Subsidiaries (other than the Borrower or any of its Subsidiaries)
shall (i) default in making any payment of any principal of any Indebtedness (including, without
limitation, any Contingent Obligation, but excluding the Parent Guaranty) on the scheduled or
original due date with respect thereto beyond the period of grace, if any, in the instrument or
agreement under which such Indebtedness was created; or (ii) default in making any payment of any
interest on any such Indebtedness beyond the period of grace, if any, provided in the instrument or
agreement under which such Indebtedness was created; or (iii) default in the observance or
performance of any other agreement or condition relating to any such Indebtedness or contained in
any instrument or agreement evidencing, securing or relating thereto, or any other event shall
occur or condition exist, the effect of which default or other event or condition is to cause or
result in such Indebtedness to become due prior to its stated maturity or to become subject to a
mandatory offer to purchase by the obligor thereunder or (in the case of any such Indebtedness
constituting a Contingent Obligation) to become payable; provided that a default, event or
condition described in clause (i), (ii) or (iii) of this paragraph (f) shall not at any time
constitute an Event of Default unless, at such time, one or more defaults, events or conditions of
the type described in clauses (i), (ii) and (iii) of this paragraph (f) shall have occurred and be
continuing with respect to Indebtedness the outstanding principal amount of which exceeds in the
aggregate $10,000,000; or

 

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(g) the Parent or any of its Subsidiaries (i) shall institute any proceeding or voluntary case
seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution, liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under
any law relating to bankruptcy, insolvency, reorganization or relief of debtors, or seeking the
entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar
official for any such Person or for any substantial part of its property, (ii) shall be generally
not paying its debts as such debts become due or shall admit in writing its inability to pay its
debts generally, (iii) shall make a general assignment for the benefit of creditors, or (iv) shall
take any action to authorize or effect any of the actions set forth above in this subsection (g);

(h) any proceeding shall be instituted against the Parent or any of its Subsidiaries seeking
to adjudicate it a bankrupt or insolvent, or seeking dissolution, liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief of debtors, or seeking the entry of an
order for relief or the appointment of a receiver, trustee, custodian or other similar official for
any such Person or for any substantial part of its property, and either such proceeding shall
remain undismissed or unstayed for a period of 60 days or any of the actions sought in such
proceeding (including, without limitation, the entry of an order for relief against any such Person
or the appointment of a receiver, trustee, custodian or other similar official for it or for any
substantial part of its property) shall occur;

(i) any provision of any Loan Document shall at any time for any reason (other than pursuant
to the express terms thereof) cease to be valid and binding on or enforceable against any Credit
Party intended to be a party thereto, or the validity or enforceability thereof shall be contested
by any party thereto, or a proceeding shall be commenced by any Credit Party or any Governmental
Authority having jurisdiction over any of them, seeking to establish the invalidity or
unenforceability thereof, or any Credit Party shall deny in writing that it has any liability or
obligation purported to be created under any Loan Document;

(j) any Security Agreement, any Pledge Agreement, any Mortgage or any other security document,
after delivery thereof pursuant hereto, shall for any reason fail or cease to create a valid and
perfected and, except to the extent permitted by the terms hereof or thereof, first priority Lien
in favor of the Collateral Agent for the benefit of the Lenders on any Collateral purported to be
covered thereby;

(k) one or more judgments, orders or awards (or any settlement of any claim that, if breached,
could result in a judgment, order or award) for the payment of money exceeding $5,000,000 in the
aggregate shall be rendered against the Parent or any of its Subsidiaries and remain unsatisfied
and either (i) enforcement proceedings shall have been commenced by any creditor upon any such
judgment, order, award or settlement, or (ii) there shall be a period of 10 consecutive days after
entry thereof during which a stay of enforcement of any such judgment, order, award or settlement,
by reason of a pending appeal or otherwise, shall not be in effect; provided,
however, that any such judgment, order, award or settlement shall not give rise to an Event
of Default under this subsection (k) if and for so long as (A) the amount of such judgment, order,
award or settlement is covered by a valid and binding policy of insurance between the defendant and
the insurer covering full payment thereof (subject to deductibles) and (B) such insurer has been
notified, and has not disputed the claim made for payment, of the amount of such judgment, order,
award or settlement;

(l) any Credit Party or any of its ERISA Affiliates shall have made a complete or partial
withdrawal from a Multiemployer Plan, and, as a result of such complete or partial withdrawal, any
Credit Party or any of its ERISA Affiliates incurs a withdrawal liability in an annual amount
exceeding $5,000,000; or a Multiemployer Plan enters reorganization status under Section 4241 of
ERISA, and, as a result thereof any Credit Party’s or any of its ERISA Affiliates’ annual
contribution requirements with respect to such Multiemployer Plan increases in an annual amount
exceeding $5,000,000;

(m) any Termination Event with respect to any Employee Plan shall have occurred, and, 30 days
after notice thereof shall have been given to any Credit Party by the Required Lenders, (i) such
Termination Event (if correctable) shall not have been corrected, and (ii) the then current value
of such Employee Plan’s vested benefits exceeds the then current value of assets allocable to such
benefits in such Employee Plan by more than $5,000,000 (or, in the case of a Termination Event
involving liability under Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or
4212 of ERISA or Section 4971 or 4975 of the Internal Revenue Code, the liability is in excess of
such amount);

 

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(n) the Parent or any of its Subsidiaries shall be liable for any Environmental Liabilities
and Costs the payment of which could reasonably be expected to have a Material Adverse Effect;

(o) a Change of Control shall have occurred; or

(p) any “Event of Default” (or any comparable term) shall have occurred under the Seller Note,
the Subordinated Borrower Note or the Subordinated Parent Note;

then, and in any such event, the Required Lenders or any Original Lender may, by notice to the
Borrower, (i) declare all or any portion of the Loans then outstanding to be due and payable,
whereupon all or such portion of the aggregate principal of all Loans, all accrued and unpaid
interest thereon, all fees and all other amounts payable under this Agreement and the other Loan
Documents shall become due and payable immediately, without presentment, demand, protest or further
notice of any kind, all of which are hereby expressly waived by each Loan Party and (ii) exercise
any and all of its other rights and remedies under applicable law, hereunder and under the other
Loan Documents; provided, however, that upon the occurrence of any Event of Default
described in subsection (g) or (h) of this Section 7.01 with respect to any Loan Party, without any
notice to any Loan Party or any other Person or any act by the Collateral Agent or any Lender, all
Loans then outstanding, together with all accrued and unpaid interest thereon, all fees and all
other amounts due under this Agreement and the other Loan Documents shall become due and payable
automatically and immediately, without presentment, demand, protest or notice of any kind, all of
which are expressly waived by each Loan Party.

ARTICLE VIII

COLLATERAL AGENT

Section 8.01 Appointment. Each Lender (and each subsequent maker of any Loan by its
making thereof) hereby irrevocably appoints and authorizes the Collateral Agent to perform the
duties of the Collateral Agent as set forth in this Agreement including: (i) to execute or file
any and all financing or similar statements or notices, amendments, renewals, supplements,
documents, instruments, proofs of claim, notices and other written agreements with respect to this
Agreement or any other Loan Document; (ii) to perform, exercise, and enforce any and all other
rights and remedies of the Lenders with respect to the Loan Parties, the Obligations, or otherwise
related to any of same to the extent reasonably incidental to the exercise by the Collateral Agent
of the rights and remedies specifically authorized to be exercised by the Collateral Agent by the
terms of this Agreement or any other Loan Document; (iii) to incur and pay such fees necessary or
appropriate for the performance and fulfillment of its functions and powers pursuant to this
Agreement or any other Loan Document (it being understood that nothing contained herein shall
require the Collateral Agent to incur or pay such fees); and (iv) subject to Section 8.03 of this
Agreement, to take such action as the Collateral Agent deems appropriate on its behalf to
administer the Loans and the Loan Documents and to exercise such other powers delegated to the
Collateral Agent by the terms hereof or the other Loan Documents (including, without limitation,
the power to give or to refuse to give notices, waivers, consents, approvals and instructions and
the power to make or to refuse to make determinations and calculations) together with such powers
as are reasonably incidental thereto to carry out the purposes hereof and thereof. As to any
matters not expressly provided for by this Agreement and the other Loan Documents (including,
without limitation, enforcement or collection of the Loans), the Collateral Agent shall not be
required to exercise any discretion or take any action, but shall be required to act or to refrain
from acting (and shall be fully protected in so acting or refraining from acting) upon the
instructions of the Required Lenders, and such instructions of the Required Lenders shall be
binding upon all Lenders and all makers of Loans; provided, however, that the
Collateral Agent shall not be required to take any action which, in the reasonable opinion of the
Collateral Agent, exposes the Collateral Agent to liability or which is contrary to this Agreement
or any other Loan Document or applicable law.

Section 8.02 Nature of Duties. (a) The Collateral Agent shall have no duties or
responsibilities except those expressly set forth in this Agreement or in the other Loan Documents.
The duties of the Collateral Agent shall be mechanical and administrative in nature. The
Collateral Agent shall not have by reason of this Agreement or any other Loan Document a fiduciary
relationship in respect of any Lender. Nothing in this Agreement or any other Loan Document,
express or implied, is intended to or shall be construed to impose upon the Collateral Agent any
obligations in respect of this Agreement or any other Loan Document except as expressly set
forth herein or therein. Each Lender shall make its own independent investigation of the
financial condition and affairs of the Loan Parties in connection with the making and the
continuance of the Loans hereunder and shall make its own appraisal of the creditworthiness of the
Loan Parties and the value of the Collateral, and the Collateral Agent shall have no duty or
responsibility, either initially or on a continuing basis, to provide any Lender with any credit or
other information with respect thereto, whether coming into their possession before the initial
Loan hereunder or at any time or times thereafter, provided that, upon the reasonable request of a
Lender, the Collateral Agent shall provide to such Lender any documents or reports delivered to the
Collateral Agent by the Loan Parties pursuant to the terms of this Agreement or any other Loan
Document. If the Collateral Agent seeks the consent or approval of the Required Lenders to the
taking or refraining from taking any action hereunder, the Collateral Agent shall send notice
thereof to each Lender. The Collateral Agent shall promptly notify each Lender any time that the
Required Lenders have instructed the Collateral Agent to act or refrain from acting pursuant
hereto.

 

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(b) The Collateral Agent may, upon any term or condition it specifies, delegate or exercise
any of its rights, powers and remedies under, and delegate or perform any of its duties or any
other action with respect to, any Loan Document by or through any trustee, co-agent, employee,
attorney-in-fact and any other Person (including any Lender). Any such Person shall benefit from
this Article VIII to the extent provided by the Collateral Agent.

Section 8.03 Rights, Exculpation, Etc. The Collateral Agent and its directors,
officers, agents or employees shall not be liable for any action taken or omitted to be taken by
them under or in connection with this Agreement or the other Loan Documents, except for their own
gross negligence or willful misconduct as determined by a final judgment of a court of competent
jurisdiction. Without limiting the generality of the foregoing, the Collateral Agent (i) may treat
the payee of any Loan as the owner thereof until the Collateral Agent receives written notice of
the assignment or transfer thereof, pursuant to Section 10.07 hereof, signed by such payee and in
form satisfactory to the Collateral Agent; (ii) may consult with legal counsel (including, without
limitation, counsel to the Collateral Agent or counsel to the Loan Parties), independent public
accountants, and other experts selected by any of them and shall not be liable for any action taken
or omitted to be taken in good faith by any of them in accordance with the advice of such counsel
or experts; (iii) make no warranty or representation to any Lender and shall not be responsible to
any Lender for any statements, certificates, warranties or representations made in or in connection
with this Agreement or the other Loan Documents; (iv) shall not have any duty to ascertain or to
inquire as to the performance or observance of any of the terms, covenants or conditions of this
Agreement or the other Loan Documents on the part of any Person, the existence or possible
existence of any Default or Event of Default, or to inspect the Collateral or other property
(including, without limitation, the books and records) of any Person; (v) shall not be responsible
to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency
or value of this Agreement or the other Loan Documents or any other instrument or document
furnished pursuant hereto or thereto; and (vi) shall not be deemed to have made any representation
or warranty regarding the existence, value or collectibility of the Collateral, the existence,
priority or perfection of the Collateral Agent’s Lien thereon, or any certificate prepared by any
Loan Party in connection therewith, nor shall the Collateral Agent be responsible or liable to the
Lenders for any failure to monitor or maintain any portion of the Collateral. The Collateral Agent
shall not be liable for any apportionment or distribution of payments made in good faith pursuant
to Section 3.03, and if any such apportionment or distribution is subsequently determined to have
been made in error the sole recourse of any Lender to whom payment was due but not made, shall be
to recover from other Lenders any payment in excess of the amount which they are determined to be
entitled. The Collateral Agent may at any time request instructions from the Lenders with respect
to any actions or approvals which by the terms of this Agreement or of any of the other Loan
Documents the Collateral Agent are permitted or required to take or to grant, and if such
instructions are promptly requested, the Agents shall be absolutely entitled to refrain from taking
any action or to withhold any approval under any of the Loan Documents until they shall have
received such instructions from the Required Lenders. Without limiting the foregoing, no Lender
shall have any right of action whatsoever against the Collateral Agent as a result of the
Collateral Agent acting or refraining from acting under this Agreement or any of the other Loan
Documents in accordance with the instructions of the Required Lenders.

Section 8.04 Reliance. The Collateral Agent shall be entitled to rely upon any
written notices, statements, certificates, orders or other documents or any telephone message
believed by it in good faith to be genuine and correct and to have been signed, sent or made by the
proper Person, and with respect to all matters pertaining to this Agreement or any of the other
Loan Documents and its duties hereunder or thereunder, upon advice of counsel selected by it.

 

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Section 8.05 Indemnification. To the extent that the Collateral Agent is not
reimbursed and indemnified by any Loan Party, the Lenders will reimburse and indemnify the
Collateral Agent from and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses, advances or disbursements of any kind or nature
whatsoever which may be imposed on, incurred by, or asserted against the Collateral Agent in any
way relating to or arising out of this Agreement or any of the other Loan Documents or any action
taken or omitted by the Collateral Agent under this Agreement or any of the other Loan Documents,
in proportion to each Lender’s Pro Rata Share, including, without limitation, advances and
disbursements made pursuant to Section 8.08; provided, however, that no Lender
shall be liable for any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses, advances or disbursements for which there has been a
final judicial determination that such liability resulted from the Collateral Agent’s gross
negligence or willful misconduct. The obligations of the Lenders under this Section 8.05 shall
survive the payment in full of the Loans and the termination of this Agreement.

Section 8.06 Agents Individually. With respect to its Pro Rata Share of the Total
Term Loan Commitment hereunder and the Loans made by it, the Collateral Agent shall have and may
exercise the same rights and powers hereunder and is subject to the same obligations and
liabilities as and to the extent set forth herein for any other Lender or maker of a Loan. The
terms “Lenders” or “Required Lenders” or any similar terms shall, unless the context clearly
otherwise indicates, include the Collateral Agent in its individual capacity as a Lender or one of
the Required Lenders. The Collateral Agent and its Affiliates may accept deposits from, lend money
to, and generally engage in any kind of banking, trust or other business with the Borrower as if it
were not acting as the Collateral Agent pursuant hereto without any duty to account to the other
Lenders.

Section 8.07 Successor Agent. (a) The Collateral Agent may resign from the
performance of all its functions and duties hereunder and under the other Loan Documents at any
time by giving at least thirty (30) days’ prior written notice to the Borrower and each Lender.
Such resignation shall take effect upon the acceptance by a successor Collateral Agent of
appointment pursuant to clauses (b) and (c) below or as otherwise provided below.

(b) Upon any such notice of resignation, the Required Lenders shall appoint a successor
Collateral Agent. Upon the acceptance of any appointment as Collateral Agent hereunder by a
successor Collateral Agent, such successor Collateral Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring Collateral Agent, and the
retiring Collateral Agent shall be discharged from its duties and obligations under this Agreement
and the other Loan Documents. After the Collateral Agent’s resignation hereunder as the Collateral
Agent, the provisions of this ARTICLE VIII shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was the Collateral Agent under this Agreement and the other Loan
Documents.

(c) If a successor Collateral Agent shall not have been so appointed within said thirty (30)
day period, the retiring Collateral Agent shall then appoint a successor Collateral Agent who shall
serve as the Collateral Agent until such time, if any, as the Required Lenders appoint a successor
Collateral Agent as provided above.

Section 8.08 Collateral Matters.

(a) The Lenders hereby irrevocably authorize the Collateral Agent, at the direction of the
Required Lenders, to release any Lien granted to or held by the Collateral Agent upon any
Collateral upon payment and satisfaction of all Loans and all other Obligations in accordance with
the terms hereof; or constituting property being sold or disposed of in compliance with the terms
of this Agreement and the other Loan Documents; or constituting property in which the Loan Parties
owned no interest at the time the Lien was granted or at any time thereafter; or if approved,
authorized or ratified in writing by the Lenders. Upon request by the Collateral Agent at any
time, the Lenders will confirm in writing the Collateral Agent’s authority to release particular
types or items of Collateral pursuant to this Section 8.08(a).

(b) Without in any manner limiting the Collateral Agent’s authority to act without any
specific or further authorization or consent by the Lenders (as set forth in Section 8.08(a)), each
Lender agrees to confirm in writing, upon request by the Collateral Agent, the authority to release
Collateral conferred upon the Collateral Agent under Section 8.08(a). Upon receipt by the
Collateral Agent of confirmation from the Lenders of its
authority to release any particular item or types of Collateral, and upon prior written
request by any Loan Party, the Collateral Agent shall (and is hereby irrevocably authorized by the
Lenders to) execute such documents as may be necessary to evidence the release of the Liens granted
to the Collateral Agent for the benefit of the Lenders upon such Collateral; provided,
however, that (i) the Collateral Agent shall not be required to execute any such document
on terms which, in the Collateral Agent’s opinion, would expose the Collateral Agent to liability
or create any obligations or entail any consequence other than the release of such Liens without
recourse or warranty, and (ii) such release shall not in any manner discharge, affect or impair the
Obligations or any Lien upon (or obligations of any Loan Party in respect of) all interests in the
Collateral retained by any Loan Party.

 

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(c) The Collateral Agent shall have no obligation whatsoever to any Lender to assure that the
Collateral exists or is owned by the Loan Parties or is cared for, protected or insured or has been
encumbered or that the Lien granted to the Collateral Agent pursuant to this Agreement or any other
Loan Document has been properly or sufficiently or lawfully created, perfected, protected or
enforced or is entitled to any particular priority, or to exercise at all or in any particular
manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the
rights, authorities and powers granted or available to the Collateral Agent in this Section 8.08 or
in any other Loan Document, it being understood and agreed that in respect of the Collateral, or
any act, omission or event related thereto, the Collateral Agent may act in any manner it may deem
appropriate, in its sole discretion, given the Collateral Agent’s own interest in the Collateral as
one of the Lenders and that the Collateral Agent shall have no duty or liability whatsoever to any
other Lender, except as otherwise provided herein.

Section 8.09 Agency for Perfection. The Collateral Agent and each Lender hereby
appoints each other Lender as agent and bailee for the purpose of perfecting the security interests
in and liens upon the Collateral in assets which, in accordance with Article 9 of the Uniform
Commercial Code, can be perfected only by possession or control (or where the security interest of
a secured party with possession or control has priority over the security interest of another
secured party) and the Collateral Agent and each Lender hereby acknowledges that it holds
possession of or otherwise controls any such Collateral for the benefit of the Collateral Agent and
the Lenders as secured party. Should any Lender obtain possession or control of any such
Collateral, such Lender shall notify the Collateral Agent thereof, and, promptly upon the
Collateral Agent’s request therefor shall deliver such Collateral to the Collateral Agent or in
accordance with the Collateral Agent’s instructions. In addition, the Collateral Agent shall also
have the power and authority hereunder to appoint such other sub-agents as may be necessary or
required under applicable state law or otherwise to perform its duties and enforce its rights with
respect to the Collateral and under the Loan Documents. Each Loan Party by its execution and
delivery of this Agreement hereby consents to the foregoing.

ARTICLE IX

GUARANTY

Section 9.01 Guaranty. Each Subsidiary Guarantor hereby jointly and severally and
unconditionally and irrevocably guarantees the punctual payment when due, whether at stated
maturity, by acceleration or otherwise, of all Obligations of the Borrower now or hereafter
existing under any Loan Document, whether for principal, interest (including, without limitation,
all interest that accrues after the commencement of any Insolvency Proceeding of the Borrower,
whether or not a claim for post-filing interest is allowed in such Insolvency Proceeding), fees,
commissions, expense reimbursements, indemnifications or otherwise (such obligations, to the extent
not paid by the Borrower, being the “Guaranteed Obligations”), and agrees to pay any and
all expenses (including reasonable counsel fees and expenses) incurred by the Collateral Agent and
the Lenders in enforcing any rights under the guaranty set forth in this ARTICLE IX. Without
limiting the generality of the foregoing, each Subsidiary Guarantor’s liability shall extend to all
amounts that constitute part of the Guaranteed Obligations and would be owed by the Borrower to the
Collateral Agent and the Lenders under any Loan Document but for the fact that they are
unenforceable or not allowable due to the existence of an Insolvency Proceeding involving the
Borrower.

 

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Section 9.02 Guaranty Absolute. Each Subsidiary Guarantor jointly and severally
guarantees that the Guaranteed Obligations will be paid strictly in accordance with the terms of
the Loan Documents, regardless of any law, regulation or order now or hereafter in effect in any
jurisdiction affecting any of such terms or the rights
of the Collateral Agent and the Lenders with respect thereto. Each Subsidiary Guarantor
agrees that this ARTICLE IX constitutes a guaranty of payment when due and not of collection and
waives any right to require that any resort be made by the Collateral Agent or any Lender to any
Collateral. The obligations of each Subsidiary Guarantor under this ARTICLE IX are independent of
the Guaranteed Obligations, and a separate action or actions may be brought and prosecuted against
each Subsidiary Guarantor to enforce such obligations, irrespective of whether any action is
brought against any Loan Party or whether any Loan Party is joined in any such action or actions.
The liability of each Subsidiary Guarantor under this ARTICLE IX shall be irrevocable, absolute and
unconditional irrespective of, and each Subsidiary Guarantor hereby irrevocably waives any defenses
it may now or hereafter have in any way relating to, any or all of the following:

(a) any lack of validity or enforceability of any Loan Document or any agreement or instrument
relating thereto;

(b) any change in the time, manner or place of payment of, or in any other term of, all or any
of the Guaranteed Obligations, or any other amendment or waiver of or any consent to departure from
any Loan Document, including, without limitation, any increase in the Guaranteed Obligations
resulting from the extension of additional credit to any Loan Party or otherwise;

(c) any taking, exchange, release or non-perfection of any Collateral, or any taking, release
or amendment or waiver of or consent to departure from any other guaranty, for all or any of the
Guaranteed Obligations;

(d) the existence of any claim, set-off, defense or other right that any Subsidiary Guarantor
may have at any time against any Person, including, without limitation, the Collateral Agent or any
Lender;

(e) any change, restructuring or termination of the corporate, limited liability company or
partnership structure or existence of any Loan Party; or

(f) any other circumstance (including, without limitation, any statute of limitations) or any
existence of or reliance on any representation by the Collateral Agent or the Lenders that might
otherwise constitute a defense available to, or a discharge of, any Loan Party or any other
guarantor or surety.

This ARTICLE IX shall continue to be effective or be reinstated, as the case may be, if at any time
any payment of any of the Guaranteed Obligations is rescinded or must otherwise be returned by the
Collateral Agent, the Lenders or any other Person upon the insolvency, bankruptcy or reorganization
of the Borrower or otherwise, all as though such payment had not been made.

Section 9.03 Waiver. Each Subsidiary Guarantor hereby waives (i) promptness and
diligence, (ii) notice of acceptance and any other notice with respect to any of the Guaranteed
Obligations and this ARTICLE IX and any requirement that the Collateral Agent or the Lenders
exhaust any right or take any action against any Loan Party, any other Person or any Collateral,
(iii) any right to compel or direct the Collateral Agent or any Lender to seek payment or recovery
of any amounts owed under this ARTICLE XI from any one particular fund or source or to exhaust any
right or take any action against any other Loan Party, any other Person or any Collateral, (iv) any
requirement that the Collateral Agent or any Lender protect, secure, perfect or insure any security
interest or Lien on any property subject thereto or exhaust any right to take any action against
any Loan Party, any other Person or any Collateral, and (v) any other defense available to any
Subsidiary Guarantor. Each Subsidiary Guarantor agrees that the Collateral Agent and the Lenders
shall have no obligation to marshal any assets in favor of any Subsidiary Guarantor or against, or
in payment of, any or all of the Obligations. Each Subsidiary Guarantor acknowledges that it will
receive direct and indirect benefits from the financing arrangements contemplated herein and that
the waiver set forth in this Section 9.03 is knowingly made in contemplation of such benefits.
Each Subsidiary Guarantor hereby waives any right to revoke this ARTICLE IX, and acknowledges that
this ARTICLE IX is continuing in nature and applies to all Guaranteed Obligations, whether existing
now or in the future.

 

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Section 9.04 Continuing Guaranty; Assignments. This ARTICLE IX is a continuing
guaranty and shall (a) remain in full force and effect until the later of the cash payment in full
of the Guaranteed Obligations
(other than indemnification obligations as to which no claim has been made) and all other
amounts payable under this ARTICLE IX and the Final Maturity Date, (b) be binding upon each
Subsidiary Guarantor, its successors and assigns and (c) inure to the benefit of and be enforceable
by the Collateral Agent and the Lenders and their successors, pledgees, transferees and assigns.
Without limiting the generality of the foregoing clause (c), any Lender may pledge, assign or
otherwise transfer all or any portion of its rights and obligations under this Agreement
(including, without limitation, all or any portion of its Commitments and its Loans owing to it) to
any other Person, and such other Person shall thereupon become vested with all the benefits in
respect thereof granted such Lender herein or otherwise, in each case as provided in Section 10.07.

Section 9.05 Subrogation. No Subsidiary Guarantor will exercise any rights that it
may now or hereafter acquire against any Loan Party or any other guarantor that arise from the
existence, payment, performance or enforcement of such Subsidiary Guarantor’s obligations under
this ARTICLE IX, including, without limitation, any right of subrogation, reimbursement,
exoneration, contribution or indemnification and any right to participate in any claim or remedy of
the Collateral Agent and the Lenders against any Loan Party or any other guarantor or any
Collateral, whether or not such claim, remedy or right arises in equity or under contract, statute
or common law, including, without limitation, the right to take or receive from any Loan Party or
any other guarantor, directly or indirectly, in cash or other property or by set-off or in any
other manner, payment or security solely on account of such claim, remedy or right, unless and
until all of the Guaranteed Obligations and all other amounts payable under this ARTICLE IX shall
have been paid in full in cash and the Final Maturity Date shall have occurred. If any amount
shall be paid to any Subsidiary Guarantor in violation of the immediately preceding sentence at any
time prior to the later of the payment in full in cash of the Guaranteed Obligations and all other
amounts payable under this ARTICLE IX and the Final Maturity Date, such amount shall be held in
trust for the benefit of the Collateral Agent and the Lenders and shall forthwith be paid to the
Collateral Agent and the Lenders to be credited and applied to the Guaranteed Obligations and all
other amounts payable under this ARTICLE IX, whether matured or unmatured, in accordance with the
terms of this Agreement, or to be held as Collateral for any Guaranteed Obligations or other
amounts payable under this ARTICLE IX thereafter arising. If (i) any Subsidiary Guarantor shall
make payment to the Collateral Agent and the Lenders of all or any part of the Guaranteed
Obligations, (ii) all of the Guaranteed Obligations and all other amounts payable under this
ARTICLE IX shall be paid in full in cash and (iii) the Final Maturity Date shall have occurred, the
Collateral Agent and the Lenders will, at such Subsidiary Guarantor’s request and expense, execute
and deliver to such Subsidiary Guarantor appropriate documents, without recourse and without
representation or warranty, necessary to evidence the transfer by subrogation to such Subsidiary
Guarantor of an interest in the Guaranteed Obligations resulting from such payment by such
Subsidiary Guarantor.

ARTICLE X

MISCELLANEOUS

Section 10.01 Notices, Etc. All notices and other communications provided for
hereunder shall be in writing and shall be mailed, telecopied or delivered, if to any Loan Party,
at the following address:

Lion Oil Company

7102 Commerce Way

Brentwood, Tennessee 37027

Attention: Chief Financial Officer

Telephone: 615-771-6071

Telecopier: 615-771-8089

with a copy to:

Bass, Berry & Sims PLC

150 Third Avenue South, Suite 2800

Nashville, Tennessee 37201

Attention: Todd J. Rolapp

Telephone: 615-742-6288

Telecopier: 615-742-2788

 

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if to a Lender, to it at its address (or facsimile number) set forth on Schedule
1.01(A) or in the Assignment and Acceptance pursuant to which such Lender shall have
become a party hereto;

if to the Collateral Agent, to it at the following addresses:

Bank Leumi USA

564 Fifth Avenue

New York NY 10036

Attn: Gil Hershman

Fax: 212-626-1072

in each case, with a copy to:

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Attention: Lawrence S. Goldberg

Telephone: 212-756-2000

Telecopier: 212-593-5955

or, as to each party, at such other address as shall be designated by such party in a written
notice to the other parties complying as to delivery with the terms of this Section 10.01. All
such notices and other communications shall be effective, (i) if mailed, when received or three
days after deposited in the mails, whichever occurs first, (ii) if telecopied, when transmitted and
confirmation received, or (iii) if delivered, upon delivery, except that notices to the Collateral
Agent or any Lender pursuant to ARTICLE II shall not be effective until received by the Collateral
Agent or such Lender.

Section 10.02 Amendments, Etc. No amendment or waiver of any provision of this
Agreement, and no consent to any departure by any Loan Party therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Required Lenders or by the
Collateral Agent with the consent of the Required Lenders, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given,
provided, however, that no amendment, waiver or consent shall (i) increase the
Commitment of any Lender, reduce the principal of, or interest on, the Loans payable to any Lender,
reduce the amount of any fee payable for the account of any Lender, or postpone or extend any date
fixed for any payment of principal of, or interest or fees on, the Loans payable to any Lender, in
each case without the written consent of any Lender affected thereby, (ii) increase the Total Term
Loan Commitment without the written consent of each Lender, (iii) change the percentage of the
Commitments or of the aggregate unpaid principal amount of the Loans that is required for the
Lenders or any of them to take any action hereunder, (iv) amend the definition of “Required
Lenders” or “Pro Rata Share”, (v) release all or a substantial portion of the Collateral (except as
otherwise provided in this Agreement and the other Loan Documents), subordinate any Lien granted in
favor of the Collateral Agent for the benefit of the Lenders, or release the Borrower or any
Guarantor, or (vi) amend, modify or waive Section 3.03 or this Section 10.02 of this Agreement, in
each case, without the written consent of each Lender. Notwithstanding the foregoing, no
amendment, waiver or consent shall, unless in writing and signed by the Collateral Agent, affect
the rights or duties of the Collateral Agent (but not in its capacity as a Lender) under this
Agreement or the other Loan Documents.

Section 10.03 No Waiver; Remedies, Etc. No failure on the part of the Collateral
Agent or any Lender to exercise, and no delay in exercising, any right hereunder or under any other
Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any
right under any Loan Document preclude any other or further exercise thereof or the exercise of any
other right. The rights and remedies of the Collateral Agent and the Lenders provided herein and
in the other Loan Documents are cumulative and are in addition to, and not exclusive of, any rights
or remedies provided by law. The rights of the Collateral Agent and the Lenders under any Loan
Document against any party thereto are not conditional or contingent on any attempt by the
Collateral Agent and the Lenders to exercise any of their rights under any other Loan Document
against such party or against any other Person.

 

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Section 10.04 Expenses; Taxes; Attorneys’ Fees. The Borrower will pay on demand, all
costs and expenses incurred by or on behalf of the Collateral Agent and each Lender, regardless of
whether the transactions
contemplated hereby are consummated, including, without limitation, reasonable fees, costs,
client charges and expenses of counsel for the Collateral Agent and each Lender, accounting, due
diligence, periodic field audits, physical counts, valuations, investigations, searches and
filings, monitoring of assets, appraisals of Collateral, title searches and reviewing environmental
assessments, miscellaneous disbursements, examination, travel, lodging and meals, arising from or
relating to: (a) the negotiation, preparation, execution, delivery, performance and administration
of this Agreement and the other Loan Documents (including, without limitation, the preparation of
any additional Loan Documents pursuant to Section 6.01(b) or the review of any of the agreements,
instruments and documents referred to in Section 6.01(f)), (b) any requested amendments, waivers or
consents to this Agreement or the other Loan Documents whether or not such documents become
effective or are given, (c) the preservation and protection of any of the Lenders’ rights under
this Agreement or the other Loan Documents, (d) the defense of any claim or action asserted or
brought against the Collateral Agent or any Lender by any Person that arises from or relates to
this Agreement, any other Loan Document, the Collateral Agent’s or the Lenders’ claims against any
Loan Party, or any and all matters in connection therewith, (e) the commencement or defense of, or
intervention in, any court proceeding arising from or related to this Agreement or any other Loan
Document, (f) the filing of any petition, complaint, answer, motion or other pleading by the
Collateral Agent or any Lender, or the taking of any action in respect of the Collateral or other
security, in connection with this Agreement or any other Loan Document, (g) the protection,
collection, lease, sale, taking possession of or liquidation of, any Collateral or other security
in connection with this Agreement or any other Loan Document, (h) any attempt to enforce any Lien
or security interest in any Collateral or other security in connection with this Agreement or any
other Loan Document, (i) any attempt to collect from any Loan Party, (j) all liabilities and costs
arising from or in connection with the past, present or future operations of any Loan Party
involving any damage to real or personal property or natural resources or harm or injury alleged to
have resulted from any Release of Hazardous Materials on, upon or into such property, (k) any
Environmental Liabilities and Costs incurred in connection with the investigation, removal, cleanup
and/or remediation of any Hazardous Materials present or arising out of the operations of any
facility of any Loan Party, (l) any Environmental Liabilities and Costs incurred in connection with
any Environmental Lien, or (m) the receipt by the Collateral Agent or any Lender of any advice from
professionals with respect to any of the foregoing; provided, however, that the
Borrower will not be liable for the fees and expenses of more than one separate firm of attorneys
at any time for the Lenders (except (i) to the extent that one or more local, foreign or special
counsel, in addition to its regular counsel, is reasonably required and (ii) that the fees and
expenses of additional counsel of Lenders shall be permitted in the event that counsel to the
Lenders advises that there are actual or potential conflicts of interest, including situations in
which there are one or more legal defenses available to a Lender that are different from or
additional to those available to other Lenders). Without limitation of the foregoing or any other
provision of any Loan Document: (x) the Borrower agrees to pay all stamp, document, transfer,
recording or filing taxes or fees and similar impositions now or hereafter determined by the
Collateral Agent or any Lender to be payable in connection with this Agreement or any other Loan
Document, and the Borrower agrees to save the Collateral Agent and each Lender harmless from and
against any and all present or future claims, liabilities or losses with respect to or resulting
from any omission to pay or delay in paying any such taxes, fees or impositions, (y) the Borrower
agrees to pay all broker fees that may become due in connection with the transactions contemplated
by this Agreement and the other Loan Documents, and (z) if the Borrower fails to perform any
covenant or agreement contained herein or in any other Loan Document, the Collateral Agent or any
Lender may itself perform or cause performance of such covenant or agreement, and the expenses of
the Collateral Agent or such Lender incurred in connection therewith shall be reimbursed on demand
by the Borrower.

Section 10.05 Right of Set-off. Upon the occurrence and during the continuance of any
Event of Default, the Collateral Agent or any Lender may, and is hereby authorized to, at any time
and from time to time, without notice to any Loan Party (any such notice being expressly waived by
the Loan Parties) and to the fullest extent permitted by law, set off and apply any and all
deposits (general or special, time or demand, provisional or final) at any time held and other
Indebtedness at any time owing by the Collateral Agent or such Lender to or for the credit or the
account of any Loan Party against any and all obligations of the Loan Parties either now or
hereafter existing under any Loan Document, irrespective of whether or not the Collateral Agent or
such Lender shall have made any demand hereunder or thereunder and although such obligations may be
contingent or unmatured. The Collateral Agent and each Lender agrees to notify such Loan Party
promptly after any such set-off and application made by the Collateral Agent or such Lender
provided that the failure to give such notice shall not affect the validity of such set-off and
application. The rights of the Collateral Agent and the Lenders under this Section 10.05 are in
addition to the other rights and remedies (including other rights of set-off) which the Collateral
Agent and the Lenders may have under this Agreement or any other Loan Documents of law or
otherwise.

 

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Section 10.06 Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining portions hereof or
affecting the validity or enforceability of such provision in any other jurisdiction.

Section 10.07 Assignments and Participations.

(a) This Agreement and the other Loan Documents shall be binding upon and inure to the benefit
of each Loan Party and the Collateral Agent and each Lender and their respective successors and
assigns; provided, however, that none of the Loan Parties may assign or transfer
any of its rights hereunder or under the other Loan Documents without the prior written consent of
each Lender and any such assignment without the Lenders’ prior written consent shall be null and
void.

(b) Each Lender may assign to one or more other lenders or other entities all or a portion of
its rights and obligations under this Agreement with respect to all or a portion of its Term Loan
Commitment and any Term Loan made by and, so long as no Default or Event of Default exists, with
the consent of the Borrower (such consent not to be unreasonably withheld or delayed and not to be
required for any assignment by a Lender to (x) a Lender, an Affiliate of a Lender or a Related Fund
of a Lender or (y) a group of new Lenders, each of whom is an Affiliate or Related Fund of each
other); provided, however, that (i) such assignment is in an amount which is at
least $5,000,000 or a multiple of $1,000,000 in excess thereof (or the remainder of such Lender’s
Commitment or Loan) (except such minimum amount shall not apply to an assignment by a Lender to (x)
a Lender, an Affiliate of such Lender or a Related Fund of such Lender or (y) a group of new
Lenders, each of whom is an Affiliate or Related Fund of each other to the extent the aggregate
amount to be assigned to all such new Lenders is at least $5,000,000 or a multiple of $1,000,000 in
excess thereof), and (ii) the parties to each such assignment shall execute and deliver to the
other Lenders and the Borrower an Assignment and Acceptance, together with any promissory note
subject to such assignment. Upon such execution and delivery, from and after the effective date
specified in each Assignment and Acceptance, which effective date shall be at least 3 Business Days
after the delivery thereof to the other Lenders and the Borrower, (A) the assignee thereunder shall
become a “Lender” hereunder and, in addition to the rights and obligations hereunder held by it
immediately prior to such effective date, have the rights and obligations hereunder that have been
assigned to it pursuant to such Assignment and Acceptance and (B) the assigning Lender thereunder
shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to
such Assignment and Acceptance, relinquish its rights and be released from its obligations under
this Agreement (and, in the case of an Assignment and Acceptance covering all or the remaining
portion of an assigning Lender’s rights and obligations under this Agreement, such Lender shall
cease to be a party hereto).

(c) By executing and delivering an Assignment and Acceptance, the assigning Lender and the
assignee thereunder confirm to and agree with each other and the other parties hereto as follows:
(i) other than as provided in such Assignment and Acceptance, the assigning Lender makes no
representation or warranty and assumes no responsibility with respect to any statements, warranties
or representations made in or in connection with this Agreement or any other Loan Document or the
execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement
or any other Loan Document furnished pursuant hereto; (ii) the assigning Lender makes no
representation or warranty and assumes no responsibility with respect to the financial condition of
any Credit Party or any of its Subsidiaries or the performance or observance by any Credit Party of
any of its obligations under this Agreement or any other Loan Document furnished pursuant hereto;
(iii) such assignee confirms that it has received a copy of this Agreement and the other Loan
Documents, together with such other documents and information it has deemed appropriate to make its
own credit analysis and decision to enter into such Assignment and Acceptance; (iv) such assignee
will, independently and without reliance upon the assigning Lender, the Collateral Agent or any
Lender and based on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under this Agreement and
the other Loan Documents; (v) such assignee appoints and authorizes the Collateral Agent to take
such action as agents on its behalf and to exercise such powers under this Agreement and the other
Loan Documents as are delegated to the Collateral Agent by the terms hereof and thereof, together
with such powers as are reasonably incidental hereto and thereto; and (vi) such assignee agrees
that it will perform in accordance with their terms all of the obligations which by the terms of
this Agreement and the other Loan Documents are required to be performed by it as a Lender.

 

53

 

(d) Each Lender may sell participations to one or more banks or other entities in or to all or
a portion of its rights and obligations under this Agreement and the other Loan Documents
(including, without limitation, all or a portion of its Commitments and the Loans made by it);
provided, that (i) such Lender’s obligations under this Agreement (including without limitation,
its Commitments hereunder) and the other Loan Documents shall remain unchanged; (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance of such
obligations, and the Borrower, the Collateral Agent and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights and obligations under
this Agreement and the other Loan Documents; and (iii) a participant shall not be entitled to
require such Lender to take or omit to take any action hereunder, except (A) to the extent such
participant is an Affiliate of such Lender, or (B) (1) action directly effecting an extension of
the maturity dates or decrease in the principal amount of the Loans, (2) action directly effecting
an extension of the due dates or a decrease in the rate of interest payable on the Loans or the
fees payable under this Agreement, or (3) actions directly effecting a release of all or a
substantial portion of the Collateral or any Credit Party (except as set forth in Section 8.08 of
this Agreement or any other Loan Document). The Loan Parties agree that each participant shall be
entitled to the benefits of Section 2.07 and Section 2.10 of this Agreement with respect to its
participation in any portion of the Commitments and the Loans as if it was a Lender.

(e) Nothing in this Agreement shall prevent or prohibit (i) any Lender from pledging its Loans
and Notes hereunder to a Federal Reserve Bank in support of borrowings made by such Lender from
such Federal Reserve Bank, and (ii) any Lender which is a fund may pledge all or any portion of its
Loans and Notes to its trustee or to a collateral agent providing credit or credit support to such
Lender in support of its obligations to such trustee, such collateral agent or a holder of such
obligations, as the case may be. No pledge pursuant to this clause (e) shall release the transferor
Lender from any of its obligations hereunder.

Section 10.08 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which shall be
deemed to be an original, but all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of this Agreement by telecopier shall be equally as
effective as delivery of an original executed counterpart of this Agreement. Any party delivering
an executed counterpart of this Agreement by telecopier also shall deliver an original executed
counterpart of this Agreement but the failure to deliver an original executed counterpart shall not
affect the validity, enforceability, and binding effect of this Agreement. The foregoing shall
apply to each other Loan Document mutatis mutandis.

Section 10.09 GOVERNING LAW. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS
EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT)
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

Section 10.10 CONSENT TO JURISDICTION; SERVICE OF PROCESS AND VENUE. ANY LEGAL ACTION
OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE
COURTS OF THE STATE OF NEW YORK IN THE COUNTY OF NEW YORK OR OF THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH LOAN
PARTY HEREBY IRREVOCABLY ACCEPTS IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS. EACH LOAN PARTY HEREBY IRREVOCABLY APPOINTS THE SECRETARY OF
STATE OF THE STATE OF NEW YORK AS ITS AGENT FOR SERVICE OF PROCESS IN RESPECT OF ANY SUCH ACTION OR
PROCEEDING AND FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE
AFOREMENTIONED COURTS AND IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY
REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE BORROWER AT ITS ADDRESS FOR NOTICES AS SET
FORTH IN SECTION 10.01 AND TO THE SECRETARY OF STATE OF THE STATE OF NEW YORK, SUCH SERVICE TO
BECOME EFFECTIVE TEN (10) DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE
COLLATERAL AGENT AND THE LENDERS TO SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO
COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY LOAN PARTY IN ANY OTHER JURISDICTION.
EACH LOAN PARTY HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW,
ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE JURISDICTION OR LAYING OF VENUE
OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH
LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT ANY LOAN PARTY HAS OR
HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS
(WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR
OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, EACH LOAN PARTY HEREBY IRREVOCABLY WAIVES SUCH
IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.

 

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Section 10.11 WAIVER OF JURY TRIAL, ETC. EACH LOAN PARTY, THE COLLATERAL AGENT AND
EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
CONCERNING ANY RIGHTS UNDER THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS, OR UNDER ANY AMENDMENT,
WAIVER, CONSENT, INSTRUMENT, DOCUMENT OR OTHER AGREEMENT DELIVERED OR WHICH IN THE FUTURE MAY BE
DELIVERED IN CONNECTION THEREWITH, OR ARISING FROM ANY FINANCING RELATIONSHIP EXISTING IN
CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY SUCH ACTION, PROCEEDINGS OR COUNTERCLAIM SHALL
BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. EACH LOAN PARTY CERTIFIES THAT NO OFFICER,
REPRESENTATIVE, AGENT OR ATTORNEY OF THE COLLATERAL AGENT OR ANY LENDER HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT THE COLLATERAL AGENT OR ANY LENDER WOULD NOT, IN THE EVENT OF ANY ACTION,
PROCEEDING OR COUNTERCLAIM, SEEK TO ENFORCE THE FOREGOING WAIVERS. EACH LOAN PARTY HEREBY
ACKNOWLEDGES THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE COLLATERAL AGENT AND THE LENDERS
ENTERING INTO THIS AGREEMENT.

Section 10.12 Consent by the Collateral Agent and Lenders. Except as otherwise
expressly set forth herein to the contrary, if the consent, approval, satisfaction, determination,
judgment, acceptance or similar action (an “Action”) of the Collateral Agent or any Lender
shall be permitted or required pursuant to any provision hereof or any provision of any other
agreement to which any Loan Party is a party and to which the Collateral Agent or any Lender has
succeeded thereto, such Action shall be required to be in writing and may be withheld or denied by
the Collateral Agent or such Lender, in its sole discretion, with or without any reason, and
without being subject to question or challenge on the grounds that such Action was not taken in
good faith.

Section 10.13 No Party Deemed Drafter. Each of the parties hereto agrees that no
party hereto shall be deemed to be the drafter of this Agreement.

Section 10.14 Reinstatement; Certain Payments. If any claim is ever made upon the
Collateral Agent or any Lender for repayment or recovery of any amount or amounts received by the
Collateral Agent or such Lender in payment or on account of any of the Obligations, the Collateral
Agent or such Lender shall give prompt notice of such claim to the Collateral Agent and each Lender
and the Borrower, and if the Collateral Agent or such Lender repays all or part of such amount by
reason of (i) any judgment, decree or order of any court or administrative body having jurisdiction
over the Collateral Agent or such Lender or any of its property, or (ii) any good faith settlement
or compromise of any such claim effected by the Collateral Agent or such Lender with any such
claimant, then and in such event each Loan Party agrees that (A) any such judgment, decree, order,
settlement or compromise shall be binding upon it notwithstanding the cancellation of any
Indebtedness hereunder or under the other Loan Documents or the termination of this Agreement or
the other Loan Documents, and (B) it shall be and remain liable to the Collateral Agent or such
Lender hereunder for the amount so repaid or recovered to the same extent as if such amount had
never originally been received by the Collateral Agent or such Lender.

 

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Section 10.15 Indemnification; Limitation of Liability for Certain Damages.

(a) In addition to each Loan Party’s other Obligations under this Agreement, each Loan Party
agrees to, jointly and severally, defend, protect, indemnify and hold harmless the Collateral Agent
and each Lender and all of their respective officers, directors, employees, attorneys, consultants
and agents (collectively called the “Indemnitees”) from and against any and all losses,
damages, liabilities, obligations, penalties, fees, reasonable costs and expenses (including,
without limitation, reasonable attorneys’ fees, costs and expenses) incurred by such
Indemnitees, whether prior to or from and after the Effective Date, whether direct, indirect
or consequential, as a result of or arising from or relating to or in connection with any of the
following: (i) the negotiation, preparation, execution or performance or enforcement of this
Agreement, any other Loan Document or of any other document executed in connection with the
transactions contemplated by this Agreement, (ii) the Collateral Agent’s or any Lender’s furnishing
of funds to the Borrower under this Agreement or the other Loan Documents, including, without
limitation, the management of any such Loans, (iii) any matter relating to the financing
transactions contemplated by this Agreement or the other Loan Documents or by any document executed
in connection with the transactions contemplated by this Agreement or the other Loan Documents, or
(iv) any claim, litigation, investigation or proceeding relating to any of the foregoing, whether
or not any Indemnitee is a party thereto (collectively, the “Indemnified Matters”);
provided, however, that the Loan Parties shall not have any obligation to any
Indemnitee under this subsection (a) for any Indemnified Matter caused by the gross negligence or
willful misconduct of such Indemnitee, as determined by a final judgment of a court of competent
jurisdiction.

(b) Without limiting Section 10.15(b) hereof, each Loan Party agrees to, jointly and
severally, defend, indemnify, and hold harmless the Indemnitees against any and all Environmental
Liabilities and Costs arising out of a third party claim asserted against an Indemnitee for (i)
any Releases or threatened Releases (x) at any property presently or formerly owned or operated by
any Loan Party or any Subsidiary of any Loan Party, or any of their predecessors in interest, or
(y) of any Hazardous Materials generated and disposed of by any Loan Party or any Subsidiary of any
Loan Party, or any of their predecessors in interest; (ii) any violations of Environmental Laws;
(iii) any Environmental Action relating to any Loan Party or any Subsidiary of any Loan Party, or
any of their predecessors in interest; (iv) any personal injury (including wrongful death) or
property damage (real or personal) arising out of exposure to Hazardous Materials used, handled,
generated, transported or disposed by any Loan Party or any Subsidiary of any Loan Party, or any of
their predecessors in interest; and (v) any breach of any warranty or representation regarding
environmental matters made by the Loan Parties in Section 5.01(q) or the breach of any covenant
made by the Loan Parties in Section 6.01(j); provided that the Loan Parties shall not be liable for
any portion of any Environmental Liabilities and Costs with respect to an Indemnitee (A) if the
same is determined by a court of competent jurisdiction in a final non-appealable judgment to have
resulted from such Indemnitee’s gross negligence or willful misconduct, or (B) if the Borrower was
not given notice of the subject claim and the opportunity to participate (subject to privilege) in
the defense thereof (but not to control such defense or the selection of counsel), at its expense
(except that the Loan Parties shall remain liable to the extent such failure to give notice does
not result in a loss to the Borrower).

(c) No Loan Party shall assert, and each Loan Party hereby waives, any claim against the
Indemnitees, 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 Loan Document or any agreement or
instrument contemplated hereby or thereby or referred to herein or therein, the transactions
contemplated hereby or thereby, any Loan or the use of the proceeds thereof or any act or omission
or event occurring in connection therewith, and each Loan Party hereby waives, releases and agrees
not to sue upon any such claim or seek any such damages, whether or not accrued and whether or not
known or suspected to exist in its favor.

(d) To the extent that the undertaking to indemnify, pay and hold harmless set forth in this
Section 10.15 may be unenforceable because it is violative of any law or public policy, each Loan
Party shall, jointly and severally, contribute the maximum portion which it is permitted to pay and
satisfy under applicable law, to the payment and satisfaction of all Indemnified Matters incurred
by the Indemnitees. The indemnities set forth in this Section 10.15 shall survive the repayment of
the Obligations and discharge of any Liens granted under the Loan Documents.

Section 10.16 Records. The unpaid principal of and interest on the Loans, the
interest rate or rates applicable to such unpaid principal and interest, the duration of such
applicability, the Commitments, and the accrued and unpaid fees payable pursuant to Section 2.06
hereof, including, without limitation, the Closing Fee, shall at all times be ascertained from the
records of the Lenders, which shall be conclusive and binding absent manifest error.

 

56

 

Section 10.17 Binding Effect. This Agreement shall become effective when it shall
have been executed by each Loan Party, the Collateral Agent and each Lender and when the conditions
precedent set forth in Section 4.01 hereof have been satisfied or waived in writing by the
Collateral Agent and each Lender, and thereafter shall be binding upon and inure to the benefit of
each Loan Party, the Collateral Agent and each Lender, and their respective successors and assigns,
except that the Loan Parties shall not have the right to assign their rights hereunder or any
interest herein without the prior written consent of each Lender, and any assignment by any Lender
shall be governed by Section 10.07 hereof.

Section 10.18 Interest. Notwithstanding anything herein to the contrary, if at any
time the interest rate applicable to any Loan, together with all fees, charges and other amounts
which are treated as interest on such Loan under applicable law (collectively, the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be
contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance
with applicable law, the rate of interest payable in respect of such Loan hereunder, together with
all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent
lawful, the interest and Charges that would have been payable in respect of such Loan but were not
payable as a result of the operation of this Section shall be cumulated and the interest and
Charges payable to such Lender in respect of other Loans or periods shall be increased (but not
above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the
Federal Funds Rate to the date of repayment, shall have been received by such Lender.

Section 10.19 Confidentiality. The Collateral Agent and each Lender agrees (on behalf
of itself and each of its affiliates, directors, officers, employees and representatives) to use
reasonable precautions to keep confidential, in accordance with its customary procedures for
handling confidential information of this nature and in accordance with safe and sound practices of
comparable commercial finance companies, any non-public information supplied to it by the Credit
Parties pursuant to this Agreement or the other Loan Documents (and which at the time is not, and
does not thereafter become, publicly available or available to such Person from another source not
known to be subject to a confidentiality obligation to such Person not to disclose such
information), provided that nothing herein shall limit the disclosure by the Collateral Agent or
any Lender of any such information (i) to its Affiliates and to its and its Affiliates’ respective
partners, directors, officers, employees, agents, trustees, counsel, advisors and representatives
(it being understood that the Persons to whom such disclosure is made will be informed of the
confidential nature of such information and instructed to keep such information confidential in
accordance with this Section 10.19); (ii) to any other party hereto; (iii) to any assignee or
participant (or prospective assignee or participant) so long as such assignee or participant (or
prospective assignee or participant) first agrees, in writing, to be bound by confidentiality
provisions similar in substance and effect to this Section 10.19; (iv) to the extent required by
any Requirement of Law or judicial process or as otherwise requested by any Governmental Authority;
(v) to examiners, auditors or accountants; (vi) in connection with any litigation to which the
Collateral Agent or any Lender is a party; (vii) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any action or proceeding relating to this Agreement
or any other Loan Document or the enforcement of rights hereunder or thereunder; or (viii) with the
consent of the Borrower.

Section 10.20 Integration. This Agreement, together with the other Loan Documents,
reflects the entire understanding of the parties with respect to the transactions contemplated
hereby and shall not be contradicted or qualified by any other agreement, oral or written, before
the date hereof.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

57

 

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

	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	LION OIL COMPANY, as the Borrower	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Wallace Moody
 

Name: Wallace Moody
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	GUARANTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	EL DORADO PIPELINE COMPANY, as a Guarantor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Wallace Moody
 

Name: Wallace Moody
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	J. CHRISTY CONSTRUCTION CO., INC., as a Guarantor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Wallace Moody
 

Name: Wallace Moody
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	LION OIL TRADING & TRANSPORTATION, INC., as a Guarantor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Wallace Moody
 

Name: Wallace Moody
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	MAGNOLIA PIPELINE COMPANY, as a Guarantor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Wallace Moody
 

Name: Wallace Moody
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

LION OIL COMPANY FINANCING

AGREEMENT

	 	 	 	 	 

 

 

	 	 	 	 	 	 	 
	 	 	COLLATERAL AGENT AND
LENDERS:	 	 
	 
	 	 	 	 	 	 
	 	 	ISRAEL DISCOUNT BANK OF NEW YORK, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Richard Tripaldi
 

Name: Richard Tripaldi
	 	 
	 

	 	 	 	Title: First Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Paul	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Michael Paul	 	 
	 

	 	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	BANK LEUMI USA, as the Collateral Agent and a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gil Hershman
 

Name: Gil Hershman
	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michaela Klein
 

Name: Michaela Klein
	 	 
	 

	 	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	BANK HAPAOLIM B.M., as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lee Stenner
 

Name: Lee Stenner
	 	 
	 

	 	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Maxine Levy
 

Name: Maxine Levy
	 	 
	 

	 	 	 	Title: First Vice President	 	 

LION OIL COMPANY FINANCING

AGREEMENT

 

 

Schedule 1.01(A)

Lender’s Commitments

	 	 	 	 	 	 	 
	 	 	 	 	Amount of Term	 
	Lender	 	Address for Notices	 	Loan Commitment	 
	 
	 	 	 	 	 	 
	Bank Hapoalim B.M.
	 	1177 Avenue of the Americas 
 New York, NY 10036
  Attn: Maxine Levy 
Fax: 212-782-2141	 	$	33,333,333.34	 
	 
	 	 	 	 	 	 
	Bank Leumi USA
	 	564 Fifth Avenue
 New York NY 10036
 Attn: Gil Hershman
 Fax: 212-626-1072	 	$	33,333,333.33	 
	 
	 	 	 	 	 	 
	Israel Discount Bank of New York
	 	511 Fifth Avenue
  New York NY 10017
 Attn: Roy Nachimzon 
Fax: 212-551-8259	 	$	33,333,333.33	 

 

- i -

 

Schedule 5.01(e)

Capitalization; Subsidiaries

5.01(e)(i)

The authorized capital stock of the Borrower consists solely of 12,000,000 shares of common stock,
par value $0.10 per share.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	% of	 
	Stockholders:	 	Ownership	 	 	Ownership	 
	Delek US Holdings, Inc.
	 	 	7,317,242	 	 	 	88.25	%
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	**********
	 	 	********	 	 	 	****	 
	 	 	 	 	 	 	 
	TOTAL
	 	 	8,291,442	 	 	 	100.00	%
	 	 	 	 	 	 	 

 

 

 

5.01(e)(ii)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Jurisdiction	 	 	 	 	 	 	 	Percentage of	 	 	 	 	 	 
	 	 	of	 	 	 	Number of	 	 	Outstanding	 	 	 	 	Certificate	 
	Loan Party	 	Incorporation	 	Owner	 	Shares	 	 	Shares	 	 	Class	 	Number	 
	Lion Oil Trading & Transportation, Inc.
	 	Arkansas	 	Lion Oil Company	 	 	100	 	 	 	100	 	 	Common	 	 	1	 
	El Dorado Pipeline Company
	 	Arkansas	 	Lion Oil Company	 	 	100	 	 	 	100	 	 	Common	 	 	1	 
	Magnolia Pipeline Company
	 	Arkansas	 	Lion Oil Company	 	 	100	 	 	 	100	 	 	Common	 	 	2	 
	J. Christy Construction Co., Inc.
	 	Arkansas	 	Lion Oil Company	 	 	100	 	 	 	100	 	 	Common	 	 	2	 

 

2

 

Schedule 5.01(f)

Litigation; Commercial Tort Claims

5.01(f)(i)

None.

5.01(f)(ii)

None.

 

 

 

Schedule 5.01(o)

Real Property

	 	 	 	 	 
	 	 	Company	 	Owned Location
	 
	 	 	 	 
	1.

	 	Lion Oil Company
	 	El Dorado Refinery

1000 McHenry

El Dorado, AR
	 
	 	 	 	 
	2.

	 	Lion Oil Company
	 	Truck Loading Rack

Hinson Road

El Dorado, AR
	 
	 	 	 	 
	3.

	 	Lion Oil Company
	 	Record Storage Building

Hillsboro and South West Avenue

El Dorado, AR
	 
	 	 	 	 
	4.

	 	Lion Oil Company
	 	Repair and Maintenance Shop

828 Robert E. Lee,

El Dorado, AR
	 
	 	 	 	 
	5.

	 	Lion Oil Company
	 	Picnic Grounds

Calion Road

El Dorado, AR
	 
	 	 	 	 
	6.

	 	Lion Oil Company
	 	Part of NW SW 32-17-15

El Dorado, AR
	 
	 	 	 	 
	7.

	 	Lion Oil Company
	 	Lot 10, Bl. 3, Craig’s

El Dorado, AR
	 
	 	 	 	 
	8.

	 	Lion Oil Company
	 	Lot 7, Bl. 4, Craig’s

El Dorado, AR
	 
	 	 	 	 
	9.

	 	Lion Oil Company
	 	Lots 8 & 9, Bl. 8, Craig’s

El Dorado, AR
	 
	 	 	 	 
	10.

	 	Lion Oil Company
	 	Lots 1 & 2, Bl. 12, Craig’s

El Dorado, AR
	 
	 	 	 	 
	11.

	 	Lion Oil Company
	 	Lot 12, Bl. 8

Craig’s, El Dorado, AR
	 
	 	 	 	 
	12.

	 	Lion Oil Company
	 	Lot 2, Bl. 7, Craig’s

El Dorado, AR
	 
	 	 	 	 
	13.

	 	Lion Oil Company
	 	Lot 3, Bl. 5, Craig’s

El Dorado, AR

 

 

 

	 	 	 	 	 
	 	 	Company	 	Owned Location
	 
	 	 	 	 
	14.

	 	Lion Oil Company
	 	Lot 17, Bl 4, Craig’s

El Dorado, AR
	 
	 	 	 	 
	15.

	 	Lion Oil Company
	 	Lot 4, Bl. 4, Craig’s

El Dorado, AR
	 
	 	 	 	 
	16.

	 	Lion Oil Company
	 	Lot 12 & N/2 Lot 11, Bl. 3, Craig’s

El Dorado, AR
	 
	 	 	 	 
	17.

	 	Lion Oil Company
	 	14 acres on Hinson Road

El Dorado, AR
	 
	 	 	 	 
	18.

	 	Lion Oil Company
	 	Lots 1 & 2, Bl. 6, Craig’s

El Dorado, AR
	 
	 	 	 	 
	19.

	 	Lion Oil Company
	 	Lots 1, 2, 3, 4 & 5, Bl. 3, Craig’s West End Add.

El Dorado, AR
	 
	 	 	 	 
	20.

	 	Lion Oil Company
	 	Lot 2, Bl. 2, Craig’s West End

El Dorado, AR
	 
	 	 	 	 
	21.

	 	Lion Oil Company
	 	Lot 8, Bl. 3, Craig’s West End

El Dorado, AR
	 
	 	 	 	 
	22.

	 	Lion Oil Company
	 	Lots 9 & 10, Bl. 5, Craig’s

El Dorado, AR
	 
	 	 	 	 
	23.

	 	Lion Oil Company
	 	Lot 14, Bl. 6, Cornish SD

El Dorado, AR
	 
	 	 	 	 
	24.

	 	Lion Oil Company
	 	Lots 3 & 4, Bl. 2, Craig’s

El Dorado, AR
	 
	 	 	 	 
	25.

	 	Lion Oil Company
	 	Lot 11, Bl. 2, Craig’s

El Dorado, AR
	 
	 	 	 	 
	26.

	 	Lion Oil Company
	 	Lots 11, 12, 13, 17 & 18, Block F College Subdivision

El Dorado, AR
	 
	 	 	 	 
	27.

	 	Lion Oil Company
	 	Lot 13, Bl. 6, Cornish

El Dorado, AR
	 
	 	 	 	 
	28.

	 	Lion Oil Company
	 	Lot 13, Bl. 2, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	29.

	 	Lion Oil Company
	 	Lot 10, Bl. 6, Craig’s West End Addition

El Dorado, AR

 

2

 

	 	 	 	 	 
	 	 	Company	 	Owned Location
	 
	 	 	 	 
	30.

	 	Lion Oil Company
	 	Lot 5, Bl. 4, Craig’s

El Dorado, AR
	 
	 	 	 	 
	31.

	 	Lion Oil Company
	 	Lots 13 & 14, Bl. 8, Craig’s

El Dorado, AR
	 
	 	 	 	 
	32.

	 	Lion Oil Company
	 	Lot 6, Bl. 9, Craig’s

El Dorado, AR
	 
	 	 	 	 
	33.

	 	Lion Oil Company
	 	W/2 Lots 13 & 14, Bl. 5, Craig’s

El Dorado, AR
	 
	 	 	 	 
	34.

	 	Lion Oil Company
	 	Lot 7, Bl. 7 Cornish, El Dorado, AR

	 
	 	 	 	 
	35.

	 	Lion Oil Company
	 	Lot 8, Bl. 6, Craig’s

El Dorado, AR
	 
	 	 	 	 
	36.

	 	Lion Oil Company
	 	Lot 19, Bl. F, College SD

El Dorado, AR
	 
	 	 	 	 
	37.

	 	Lion Oil Company
	 	Lots 6 & 7, Bl. 5, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	38.

	 	Lion Oil Company
	 	Lot 13 & S. 40 ft. of Lot 14, Bl. 3, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	39.

	 	Lion Oil Company
	 	Lot 16, Bl. 4, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	40.

	 	Lion Oil Company
	 	Lots 9, 10, 11, 12, 13 & 14, Bl. 7, Cornish

El Dorado, AR
	 
	 	 	 	 
	41.

	 	Lion Oil Company
	 	Beginning at the SW corner of Lot 14, Bl. 7, Cornish, and run
thence N. 50 ft. to the NW corner of Lot 14; thence W. to the E.
line of the Old El Dorado — Three Creek Road; thence in a
southwesterly direction along the East line of said road to a point
due W. of the SW corner of Lot 14; thence E. to the point of
beginning
	 
	 	 	 	 
	42.

	 	Lion Oil Company
	 	Lots 3 & 4, Bl. 6, Cornish

El Dorado, AR
	 
	 	 	 	 
	43.

	 	Lion Oil Company
	 	Lot 7, Bl. 3, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	44.

	 	Lion Oil Company
	 	Lots 13 & 14, Bl. 7, Craig’s West End Addition

El Dorado, AR

 

3

 

	 	 	 	 	 
	 	 	Company	 	Owned Location
	 
	 	 	 	 
	45.

	 	Lion Oil Company
	 	Lots 3, 4, 5, 6 & 7, Bl. 12, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	46.

	 	Lion Oil Company
	 	Lots 11 & 12, Bl. 6, Cornish

El Dorado, AR
	 
	 	 	 	 
	47.

	 	Lion Oil Company
	 	Commencing at the SE corner of the NE quarter of the Northwest
quarter of Sec. 32, Township 17 S., Range 15 W., run N. 235 ft. to
the point of beginning; thence N. 175 ft. to the S. line of El
Dorado — Three Creeks Road, now known as W. Second St.; thence S.
61 degs. W. along said line 130.0 ft.; thence S. 29 degs. E. 151.0
ft.; thence north 63 degs. 36 mins. E. 45.2 ft. to the point of
beginning
	 
	 	 	 	 
	48.

	 	Lion Oil Company
	 	Commencing at the NW corner of the SW quarter of the NW quarter of
Sec. 32, Township 17 S., Range 15 W. and thence S. 88 degs. 48
mins. E. 495.90 ft. along the N. line of said forty; thence S. 0
degree, 19 mins. W. 330.60 ft. for a point of beginning; thence S.
44 degs. 09 mins. E. 235.83 ft.; then S. 0 degree 15 mins. W.
165.60 ft.; thence S. 57 degs. 46 mins. E. 389.06 ft.; thence S. 25
degs. 50 mins. W. 215.65 ft. to the N. right-of-way line of Highway
15; thence S. 73 degs. 57 mins. 19 secs. W. 233.86 ft. along said
right-of-way line; thence N. 8 degs. 27 mins. 50 secs. W. 84.81
ft.; thence W. 150 ft.; thence N. 0 deg. 54 mins. 40 secs. W.
717.30 ft. to the point of beginning
	 
	 	 	 	 
	49.

	 	Lion Oil Company
	 	Lot 16 & N. 10 ft. of Lot 15, Bl. 3, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	50.

	 	Lion Oil Company
	 	Lot 1, Bl. 5, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	51.

	 	Lion Oil Company
	 	Lots 9 & 10, Bl. 6, Cornish

El Dorado, AR
	 
	 	 	 	 
	52.

	 	Lion Oil Company
	 	Commencing at NW corner of SE quarter of NW quarter of Sec. 32,
Township 17 S., Range 15 W. and run S. 00 deg. 58 mins. E. 230.0
ft.; thence S. 89 deg. 40 mins. E. 450.0 to the W. side of W.
Second St.; thence N. 25 degs. 59 mins. E. along said side 198.3
ft. to the point of beginning; thence N. 35 degs. 31 mins. E. along
the W. side of said street 21.2 ft.; thence N. 28 degs. 17 mins. W.
141.2 ft.; thence S. 77 degs. 05 mins. W. 38.5 ft.; thence S. 00
degs. 58 mins. E. 133.04 ft.; thence E. 89.9 ft. to the point of
beginning
	 
	 	 	 	 
	53.

	 	Lion Oil Company
	 	Commencing at NW corner of SE quarter of NW quarter of Sec. 32,
Township 17 S., Range 15 W. and run S. 00 degs. 58 mins. E. 230.0
ft.; thence S. 89 degs. 40 mins. E. 450.0 ft. to the point of
beginning; thence N. 25 degs. 59 mins. E. along the W. side of W.
Second St. 198.3 ft.; thence W. 89.9 ft.; thence S. 00 degs. 58
mins. E. 178.26 ft. to the point of beginning

 

4

 

	 	 	 	 	 
	 	 	Company	 	Owned Location
	 
	54.

	 	Lion Oil Company
	 	The W. 100 ft. of Lot 18, Bl. 3, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	55.

	 	Lion Oil Company
	 	Lot 6, Bl. 8, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	56.

	 	Lion Oil Company
	 	The E. 72 ft. of Lot 18, Bl. 3, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	57.

	 	Lion Oil Company
	 	Lot 6, Bl. 3, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	58.

	 	Lion Oil Company
	 	Lot 1, Bl. 7, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	59.

	 	Lion Oil Company
	 	The W. 46 2/3 ft. of Lots 8 & 9, Bl. 6, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	60.

	 	Lion Oil Company
	 	Lots 1 & 2, Bl. 6, Cornish

El Dorado, AR
	 
	 	 	 	 
	61.

	 	Lion Oil Company
	 	Lot 6, Bl. 4, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	62.

	 	Lion Oil Company
	 	Lots 4 & 5, Bl. 5, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	63.

	 	Lion Oil Company
	 	Memphis Terminal

1023 Riverside Boulevard

Memphis, TN
	 
	 	 	 	 
	64.

	 	Lion Oil Company
	 	Memphis Terminal

7.4633 acre tract in Memphis
	 
	 	 	 	 
	65.

	 	Lion Oil Company
	 	Nashville Terminal

90 Van Buren Street

Nashville, TN
	 
	 	 	 	 
	66.

	 	J. Christy
Construction Co.
	 	J. Christy Construction Co., Inc. Offices

1333 Robert E. Lee

El Dorado, AR
	 
	 	 	 	 
	67.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	Smackover (aka Sims) Pump Station

38 acres more or less

Miller County Rd.

Union County, AR

 

5

 

	 	 	 	 	 
	 	 	Company	 	Owned Location
	 
	 	 	 	 
	68.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	Midway Pump Station

2 acres more or less

Union County, AR
	 
	 	 	 	 
	69.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	Magnolia Pump Station

48.42 acres more or less

Columbia County, AR
	 
	 	 	 	 
	70.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	Louann Pump Station

Ouachita County, AR
	 
	 	 	 	 
	71.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	Sohio Station

12.5 acres

Columbia County, AR
	 
	 	 	 	 
	72.

	 	Magnolia Pipeline

Company
	 	Haynesville Station

3 acres more or less

10630 Highway 79

Claiborne Parish, LA
	 
	 	 	 	 
	73.

	 	Magnolia Pipeline

Company
	 	Weller Station

21 acres more or less

2311 Highway 534

Homer, LA
	 
	 	 	 	 
	74.

	 	Lion Oil Company
	 	Perry Tank Farm

4021 Calion Highway

Union County, AR
	 
	 	 	 	 
	75.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	Constantine Tank Farm

72 acres more or less

Shuler Rd.

Union County, AR
	 
	 	 	 	 
	76.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	Champagnolle Landing Property

45.8 acres more or less

Union County, AR
	 
	 	 	 	 
	77.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	American (Amoco) Tank Farm

30 acres more or less

El Dorado Industrial Park

El Dorado, AR
	 
	 	 	 	 
	78.

	 	El Dorado Pipeline

Company
	 	13.22 acre plot in Columbia County conveyed by special warranty deed

 

6

 

	 	 	 	 	 
	 	 	Company	 	Owned Location
	 
	 	 	 	 
	79.

	 	El Dorado Pipeline

Company
	 	5 acre plot in Columbia County conveyed by special warranty deed
	 
	 	 	 	 
	80.

	 	El Dorado Pipeline

Company
	 	Pipeline system conveyed by quitclaim in Union County, AR
	 
	 	 	 	 
	81.

	 	El Dorado Pipeline

Company
	 	Pipeline system conveyed by quitclaim in Columbia County, AR
	 
	 	 	 	 
	82.

	 	Magnolia Pipeline

Company
	 	Pipeline from Finney to Haynesville
	 
	 	 	 	 
	83.

	 	Lion Oil Company
	 	Real property related to the pipeline gathering system located in
Columbia, Nevada, and Ouachita Counties, AR

Leased Real Property

	 	 	 	 	 
	 	 	Company	 	Leased Locations
	 
	 	 	 	 
	1.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	Offices and Parking

1001 School Street

El Dorado, AR
	 
	 	 	 	 
	2.

	 	Lion Oil Company
	 	Office Space in Regions Bank Building

100 East Peach Street

El Dorado, AR
	 
	 	 	 	 
	3.

	 	Lion Oil Company
	 	0.413 acres adjacent to Trinity Asphalt’s
property in Rusk County, TX
	 
	 	 	 	 
	4.

	 	Lion Oil Company
	 	0.3 acres related to three leased storage
tanks , related truck scales and hot oil
heater in Rusk County, TX
	 
	 	 	 	 
	5.

	 	Lion Oil Company
	 	2501 Port Place

Muskogee, OK
	 
	 	 	 	 
	6.

	 	Lion Oil Company
	 	0.32 acres known as Tract 3 in El Dorado, AR

 

7

 

	 	 	 	 	 
	 	 	Company	 	Leased Locations
	 
	 	 	 	 
	Lion Oil Trading & Transportation, Inc., El Dorado Pipeline Company, and Magnolia
Pipeline Company have a large number of leases and easements pertaining to rights-of way
and pump stations within the crude oil gathering system. Most of the leased pump
stations are at remote gathering points and truck unloading sites throughout the
gathering system. The sites include:
	 
	 	 	 	 
	7.

	 	 	 	Fouke Station, near Fouke, AR
	 
	 	 	 	 
	8.

	 	 	 	Spirit Lake, near Garland City, AR
	 
	 	 	 	 
	9.

	 	 	 	Rook Station, near Lewisville, AR
	 
	 	 	 	 
	10.

	 	 	 	Buckner Station, near Buckner, AR
	 
	 	 	 	 
	11.

	 	 	 	Tank 435 at Magnolia Station

Columbia County, AR
	 
	 	 	 	 
	12.

	 	 	 	Colquitt Truck Storage, near Colquitt, LA
	 
	 	 	 	 
	13.

	 	 	 	Colquitt Storage, near Colquitt, LA
	 
	 	 	 	 
	14.

	 	 	 	Tank 369, near Stephens, AR
	 
	 	 	 	 
	15.

	 	 	 	Tank 370, near Stephens, AR
	 
	 	 	 	 
	16.

	 	 	 	Pace City Storage, near Pace City, AR
	 
	 	 	 	 
	17.

	 	 	 	Sandy Bend Storage, near Strong, AR
	 
	 	 	 	 
	18.

	 	 	 	Urbana Storage, near Urbana, AR
	 
	 	 	 	 
	19.

	 	 	 	Like Creek Storage, near the Ouachita River
Bridge on U.S. Highway 63, Union County, AR
	 
	 	 	 	 
	20.

	 	 	 	Battery 2 Storage, west of El Dorado, AR
	 
	 	 	 	 
	21.

	 	 	 	Battery 3 Storage, west of El Dorado, AR

 

8

 

	 	 	 	 	 
	 	 	Company	 	Leased Locations
	 
	 	 	 	 
	22.

	 	 	 	Caddo Fee Storage, east of El Dorado, AR
	 
	 	 	 	 
	23.

	 	 	 	Modesette Storage, east of El Dorado, AR
	 
	 	 	 	 
	24.

	 	 	 	Big Heart Shuler Storage, west of El Dorado, AR
	 
	 	 	 	 
	25.

	 	 	 	Lion Shuler Pump Station, west of El Dorado, AR
	 
	 	 	 	 
	26.

	 	Lion Oil Company
	 	Reactor Storage (FCC Reactor) at the storage
facility near Heater Specialists, Inc.
	 
	 	 	 	 
	27.

	 	Lion Oil Company
	 	Easement from Lion Oil Company to TE Products
Pipeline Company, LLC for below ground
pipeline at Memphis Terminal, dated Nov. 20,
2008
	 
	 	 	 	 
	28.

	 	Lion Oil Company
	 	Easement and right-of-way granted from
ExxonMobil Refining and Supply Company to Lion
Oil Company, allowing Lion Oil Company to move
underground pipelines above ground, crossing
ExxonMobil’s roadway at Memphis Terminal,
pursuant to Easement Agreement dated May 19,
2003
	 
	 	 	 	 
	29.

	 	Lion Oil Company
	 	License for overhead truss from BNSF Railway
Company to Lion Oil Company for the Memphis
Terminal, dated Nov. 28, 2007
	 
	 	 	 	 
	30.

	 	Lion Oil Company
	 	License for overhead truss from Burlington
North & Santa Fe Railway Company to Lion Oil
Company, made Apr. 1, 2001, effective Mar. 27,
2002
	 
	 	 	 	 
	31.

	 	Lion Oil Company
	 	Site Access License from ExxonMobil
Corporation to Lion Oil Company to perform
environmental investigations and remediation
work at the Memphis Terminal, dated Oct. 1,
2001
	 
	 	 	 	 
	32.

	 	Lion Oil Company
	 	Site Access License from Lion Oil Company to
ExxonMobil Corporation to perform
environmental investigations and remediation
work at the Memphis Terminal, dated Oct. 1,
2001
	 
	 	 	 	 
	33.

	 	Lion Oil Company
	 	Sewer easement at Memphis Terminal
	 
	 	 	 	 
	34.

	 	Lion Oil Company
	 	Pipeline Easement at Nashville Terminal
granted originally from W.G. Bush to Apex Oil
in Mar. 1936; transferred from Apex Oil to
Monsanto to Tosco to Lion and made permanent
in 1989 by an agreement with Signal Mountain
Cement Company
	 
	 	 	 	 
	35.

	 	Lion Oil Company
	 	Easement at Nashville Terminal from the
Metropolitan Government of Nashville and
Davidson County to Lion Oil Company, dated
Jan. 9, 2009

 

9

 

	 	 	 	 	 
	 	 	Company	 	Leased Locations
	 
	 	 	 	 
	36.

	 	Lion Oil Company
	 	Easement from Lion Oil Company to Entergy
Arkansas, Inc. and Easement from Entergy
Arkansas, Inc. to Lion Oil Company, both
unexecuted, for a property “swap” adjacent to
the El Dorado Refinery and to the Entergy
substation. Substation upgrade was completed
in 2004 even though documents remain unsigned.
	 
	 	 	 	 
	37.

	 	Lion Oil Company
	 	0.08 acres at El Dorado Airport
	 
	 	 	 	 
	38.

	 	Lion Oil Trading &
Transportation,
Inc.
	 	Land at the Downtown Airport,

Union County, Arkansas
	 
	 	 	 	 
	39.

	 	Lion Oil Trading &
Transportation,
Inc.
	 	El Dorado Pipeline Offices

El Dorado, AR
	 
	 	 	 	 
	40.

	 	Magnolia Pipeline

Company
	 	Senior Pump Station

2040 Doc Steed Rd.

Minden, LA
	 
	 	 	 	 
	41.

	 	Magnolia Pipeline

Company
	 	Finney Pump Station

11705 Ellerbe Road

Shreveport, LA

 

10

 

Schedule 5.01(q)

Environmental Matters

	1.	 	**********

	2.	 	**********

 

 

 

	3.	 	**********

	4.	 	Changes in Department of Transportation (DOT) pipeline regulations could subject certain
un-regulated facilities in the Lion Oil Trading & Transportation system to DOT regulation in
the future.

	5.	 	**********

	6.	 	**********

	7.	 	**********

	8.	 	**********

2

 

	9.	 	**********

	10.	 	**********

	11.	 	**********

	12.	 	**********

3

 

	13.	 	**********

	14.	 	**********

	15.	 	Global Settlement Consent Decree signed by Lion Oil Company on 01/22/2003.

	16.	 	Notice of Violation of NPDES Permit #TN0067288 dated 01/25/10, issued to Lion’s Memphis
Terminal for failure to file Discharge Monitoring Reports.

	 
	17.	 	Environmental Protection Agency Stipulated Penalties.

 

4

 

	18.	 	**********

	19.	 	**********

	20.	 	**********

	21.	 	**********

	22.	 	**********

5

 

	23.	 	**********

	24.	 	**********

	25.	 	**********

6

 

	26.	 	**********

	27.	 	**********

	 
	28.	 	Global Settlement Consent Decree signed by Lion Oil Company on 01/22/2003.

	29.	 	Notice of Violation of NPDES Permit #TN0067288 dated 01/25/10, issued to Lion’s Memphis
Terminal for failure to file Discharge Monitoring Reports.

	 
	30.	 	**********

	31.	 	**********

	32.	 	**********

	33.	 	**********

	34.	 	***********

	35.	 	**********

7

 

	36.	 	**********

8

 

	37.	 	**********

	38.	 	**********

	39.	 	**********

	40.	 	**********

	41.	 	**********

	42.	 	**********

9

 

	43.	 	**********

	44.	 	**********

	45.	 	McMurrian vs. Lion Oil Company, et al. Cause No. CIV-2001-213, Circuit Court, Union County,
Arkansas. This litigation has been pending for almost ten years. It involves a claim for
environmental damage to real property from the crude oil operations that were conducted on the
property. Lion’s sole involvement with the litigation is as the first purchaser of the crude oil
production. The judge has denied Lion’s Motion for Summary Judgment. The matter is set for trial in
November 2011.

10

 

Schedule 6.01(o)

Post Closing Matters

I. Insurance

Within 5 days after the Effective Date, deliver to the Collateral Agent and the Lenders
evidence of renewals, extensions or replacements of the Borrower’s and its Subsidiaries’ property
insurance, in form and substance satisfactory to the Collateral Agent and the Lenders.

II. Owned Real Property

  With respect to each of the Owned Real Properties listed below (other than Owned
Real Properties where the Required Lenders agree the cost, burden or consequences of obtaining or
perfecting a security interest in such assets is excessive in relation to the value afforded
thereby), Borrower, at its sole cost and expense must provide the following items within 90 days of
the Effective Date: (i) a duly executed Mortgage in recordable form with respect to such real
property and related assets; (ii) a Title Insurance Policy; (iii) a survey of such real property,
certified to the Collateral Agent and to the issuer of the Title Insurance Policy by a licensed
professional surveyor reasonably satisfactory to the Collateral Agent and the Required Lenders;
(iv) Local Counsel Mortgage Enforceability opinions; (v) Evidence of Flood Insurance/Flood
Certificates that meet the insurance requirements set forth in the Credit Agreement; (vi)
Appraisals; (vii) PZR Reports; and (viii) such other documents or instruments as the Collateral
Agent may reasonably require with respect to such owned real property.

	 	 	 	 	 
	 	 	Company	 	Owned Location
	 
	 	 	 
	1.

	 	Lion Oil Company
	 	El Dorado Refinery

1000 McHenry

El Dorado, AR
	 
	 	 	 	 
	2.

	 	Lion Oil Company
	 	Truck Loading Rack

Hinson Road

El Dorado, AR
	 
	 	 	 	 
	3.

	 	Lion Oil Company
	 	Record Storage Building

Hillsboro and South West Avenue

El Dorado, AR
	 
	 	 	 	 
	4.

	 	Lion Oil Company
	 	Repair and Maintenance Shop

828 Robert E. Lee,

El Dorado, AR
	 
	 	 	 	 
	5.

	 	Lion Oil Company
	 	Picnic Grounds

Calion Road

El Dorado, AR
	 
	 	 	 	 
	6.

	 	Lion Oil Company
	 	Part of NW SW 32-17-15

El Dorado, AR
	 
	 	 	 	 
	7.

	 	Lion Oil Company
	 	Lot 10, Bl. 3, Craig’s

El Dorado, AR
	 
	 	 	 	 
	8.

	 	Lion Oil Company
	 	Lot 7, Bl. 4, Craig’s

El Dorado, AR

 

- i -

 

	 	 	 	 	 
	 	 	Company	 	Owned Location
	 
	 	 	 	 
	9.

	 	Lion Oil Company
	 	Lots 8 & 9, Bl. 8, Craig’s

El Dorado, AR
	 
	 	 	 	 
	10.

	 	Lion Oil Company
	 	Lots 1 & 2, Bl. 12, Craig’s

El Dorado, AR
	 
	 	 	 	 
	11.

	 	Lion Oil Company
	 	Lot 12, Bl. 8

Craig’s, El Dorado, AR
	 
	 	 	 	 
	12.

	 	Lion Oil Company
	 	Lot 2, Bl. 7, Craig’s

El Dorado, AR
	 
	 	 	 	 
	13.

	 	Lion Oil Company
	 	Lot 3, Bl. 5, Craig’s

El Dorado, AR
	 
	 	 	 	 
	14.

	 	Lion Oil Company
	 	Lot 17, Bl 4, Craig’s

El Dorado, AR
	 
	 	 	 	 
	15.

	 	Lion Oil Company
	 	Lot 4, Bl. 4, Craig’s

El Dorado, AR
	 
	 	 	 	 
	16.

	 	Lion Oil Company
	 	Lot 12 & N/2 Lot 11, Bl. 3, Craig’s

El Dorado, AR
	 
	 	 	 	 
	17.

	 	Lion Oil Company
	 	14 acres on Hinson Road

El Dorado, AR
	 
	 	 	 	 
	18.

	 	Lion Oil Company
	 	Lots 1 & 2, Bl. 6, Craig’s

El Dorado, AR
	 
	 	 	 	 
	19.

	 	Lion Oil Company
	 	Lots 1, 2, 3, 4 & 5, Bl. 3, Craig’s West End Add.

El Dorado, AR
	 
	 	 	 	 
	20.

	 	Lion Oil Company
	 	Lot 2, Bl. 2, Craig’s West End

El Dorado, AR
	 
	 	 	 	 
	21.

	 	Lion Oil Company
	 	Lot 8, Bl. 3, Craig’s West End

El Dorado, AR
	 
	 	 	 	 
	22.

	 	Lion Oil Company
	 	Lots 9 & 10, Bl. 5, Craig’s

El Dorado, AR
	 
	 	 	 	 
	23.

	 	Lion Oil Company
	 	Lot 14, Bl. 6, Cornish SD

El Dorado, AR
	 
	 	 	 	 
	24.

	 	Lion Oil Company
	 	Lots 3 & 4, Bl. 2, Craig’s

El Dorado, AR
	 
	 	 	 	 
	25.

	 	Lion Oil Company
	 	Lot 11, Bl. 2, Craig’s

El Dorado, AR

 

- ii -

 

	 	 	 	 	 
	 	 	Company	 	Owned Location
	 
	 	 	 	 
	26.

	 	Lion Oil Company
	 	Lots 11, 12, 13, 17 & 18, Block F College Subdivision

El Dorado, AR
	 
	 	 	 	 
	27.

	 	Lion Oil Company
	 	Lot 13, Bl. 6, Cornish

El Dorado, AR
	 
	 	 	 	 
	28.

	 	Lion Oil Company
	 	Lot 13, Bl. 2, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	29.

	 	Lion Oil Company
	 	Lot 10, Bl. 6, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	30.

	 	Lion Oil Company
	 	Lot 5, Bl. 4, Craig’s

El Dorado, AR
	 
	 	 	 	 
	31.

	 	Lion Oil Company
	 	Lots 13 & 14, Bl. 8, Craig’s

El Dorado, AR
	 
	 	 	 	 
	32.

	 	Lion Oil Company
	 	Lot 6, Bl. 9, Craig’s

El Dorado, AR
	 
	 	 	 	 
	33.

	 	Lion Oil Company
	 	W/2 Lots 13 & 14, Bl. 5, Craig’s

El Dorado, AR
	 
	 	 	 	 
	34.

	 	Lion Oil Company
	 	Lot 7, Bl. 7 Cornish, El Dorado, AR
	 
	 	 	 	 
	35.

	 	Lion Oil Company
	 	Lot 8, Bl. 6, Craig’s

El Dorado, AR
	 
	 	 	 	 
	36.

	 	Lion Oil Company
	 	Lot 19, Bl. F, College SD

El Dorado, AR
	 
	 	 	 	 
	37.

	 	Lion Oil Company
	 	Lots 6 & 7, Bl. 5, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	38.

	 	Lion Oil Company
	 	Lot 13 & S. 40 ft. of Lot 14, Bl. 3, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	39.

	 	Lion Oil Company
	 	Lot 16, Bl. 4, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	40.

	 	Lion Oil Company
	 	Lots 9, 10, 11, 12, 13 & 14, Bl. 7, Cornish

El Dorado, AR
	 
	 	 	 	 
	41.

	 	Lion Oil Company
	 	Beginning at the SW corner of Lot 14, Bl. 7, Cornish, and run
thence N. 50 ft. to the NW corner of Lot 14; thence W. to the E.
line of the Old El Dorado — Three Creek Road; thence in a
southwesterly direction along the East line of said road to a point
due W. of the SW corner of Lot 14; thence E. to the point of
beginning

 

- iii -

 

	 	 	 	 	 
	 	 	Company	 	Owned Location
	 
	 	 	 	 
	42.

	 	Lion Oil Company
	 	Lots 3 & 4, Bl. 6, Cornish

El Dorado, AR
	 
	 	 	 	 
	43.

	 	Lion Oil Company
	 	Lot 7, Bl. 3, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	44.

	 	Lion Oil Company
	 	Lots 13 & 14, Bl. 7, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	45.

	 	Lion Oil Company
	 	Lots 3, 4, 5, 6 & 7, Bl. 12, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	46.

	 	Lion Oil Company
	 	Lots 11 & 12, Bl. 6, Cornish

El Dorado, AR
	 
	 	 	 	 
	47.

	 	Lion Oil Company
	 	Commencing at the SE corner of the NE quarter of the Northwest
quarter of Sec. 32, Township 17 S., Range 15 W., run N. 235 ft. to
the point of beginning; thence N. 175 ft. to the S. line of El
Dorado — Three Creeks Road, now known as W. Second St.; thence S.
61 degs. W. along said line 130.0 ft.; thence S. 29 degs. E. 151.0
ft.; thence north 63 degs. 36 mins. E. 45.2 ft. to the point of
beginning
	 
	 	 	 	 
	48.

	 	Lion Oil Company
	 	Commencing at the NW corner of the SW quarter of the NW quarter of
Sec. 32, Township 17 S., Range 15 W. and thence S. 88 degs. 48
mins. E. 495.90 ft. along the N. line of said forty; thence S. 0
degree, 19 mins. W. 330.60 ft. for a point of beginning; thence S.
44 degs. 09 mins. E. 235.83 ft.; then S. 0 degree 15 mins. W.
165.60 ft.; thence S. 57 degs. 46 mins. E. 389.06 ft.; thence S. 25
degs. 50 mins. W. 215.65 ft. to the N. right-of-way line of Highway
15; thence S. 73 degs. 57 mins. 19 secs. W. 233.86 ft. along said
right-of-way line; thence N. 8 degs. 27 mins. 50 secs. W. 84.81
ft.; thence W. 150 ft.; thence N. 0 deg. 54 mins. 40 secs. W.
717.30 ft. to the point of beginning
	 
	 	 	 	 
	49.

	 	Lion Oil Company
	 	Lot 16 & N. 10 ft. of Lot 15, Bl. 3, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	50.

	 	Lion Oil Company
	 	Lot 1, Bl. 5, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	51.

	 	Lion Oil Company
	 	Lots 9 & 10, Bl. 6, Cornish

El Dorado, AR
	 
	 	 	 	 
	52.

	 	Lion Oil Company
	 	Commencing at NW corner of SE quarter of NW quarter of Sec. 32,
Township 17 S., Range 15 W. and run S. 00 deg. 58 mins. E. 230.0
ft.; thence S. 89 deg. 40 mins. E. 450.0 to the W. side of W.
Second St.; thence N. 25 degs. 59 mins. E. along said side 198.3
ft. to the point of beginning; thence N. 35 degs. 31 mins. E. along
the W. side of said street 21.2 ft.; thence N. 28 degs. 17 mins. W.
141.2 ft.; thence S. 77 degs. 05 mins. W. 38.5 ft.; thence S. 00
degs. 58 mins. E. 133.04 ft.; thence E. 89.9 ft. to the point of
beginning

 

- iv -

 

	 	 	 	 	 
	 	 	Company	 	Owned Location
	 
	 	 	 	 
	53.

	 	Lion Oil Company
	 	Commencing at NW corner of SE quarter of NW quarter of Sec. 32,
Township 17 S., Range 15 W. and run S. 00 degs. 58 mins. E. 230.0
ft.; thence S. 89 degs. 40 mins. E. 450.0 ft. to the point of
beginning; thence N. 25 degs. 59 mins. E. along the W. side of W.
Second St. 198.3 ft.; thence W. 89.9 ft.; thence S. 00 degs. 58
mins. E. 178.26 ft. to the point of beginning
	 
	 	 	 	 
	54.

	 	Lion Oil Company
	 	The W. 100 ft. of Lot 18, Bl. 3, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	55.

	 	Lion Oil Company
	 	Lot 6, Bl. 8, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	56.

	 	Lion Oil Company
	 	The E. 72 ft. of Lot 18, Bl. 3, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	57.

	 	Lion Oil Company
	 	Lot 6, Bl. 3, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	58.

	 	Lion Oil Company
	 	Lot 1, Bl. 7, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	59.

	 	Lion Oil Company
	 	The W. 46 2/3 ft. of Lots 8 & 9, Bl. 6, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	60.

	 	Lion Oil Company
	 	Lots 1 & 2, Bl. 6, Cornish

El Dorado, AR
	 
	 	 	 	 
	61.

	 	Lion Oil Company
	 	Lot 6, Bl. 4, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	62.

	 	Lion Oil Company
	 	Lots 4 & 5, Bl. 5, Craig’s West End Addition

El Dorado, AR
	 
	 	 	 	 
	63.

	 	Lion Oil Company
	 	Memphis Terminal

1023 Riverside Boulevard

Memphis, TN
	 
	 	 	 	 
	64.

	 	Lion Oil Company
	 	Memphis Terminal

7.4633 acre tract in Memphis
	 
	 	 	 	 
	65.

	 	Lion Oil Company
	 	Nashville Terminal

90 Van Buren Street

Nashville, TN
	 
	 	 	 	 
	66.

	 	J. Christy
Construction Co.
	 	J. Christy Construction Co., Inc. Offices

1333 Robert E. Lee

El Dorado, AR

 

- v -

 

	 	 	 	 	 
	 	 	Company	 	Owned Location
	 
	 	 	 	 
	67.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	Smackover (aka Sims) Pump Station

38 acres more or less

Miller County Rd.

Union County, AR
	 
	 	 	 	 
	68.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	Midway Pump Station

2 acres more or less

Union County, AR
	 
	 	 	 	 
	69.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	Magnolia Pump Station

48.42 acres more or less

Columbia County, AR
	 
	 	 	 	 
	70.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	Louann Pump Station

Ouachita County, AR
	 
	 	 	 	 
	71.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	Sohio Station

12.5 acres

Columbia County, AR
	 
	 	 	 	 
	72.

	 	Magnolia Pipeline

Company
	 	Haynesville Station

3 acres more or less

10630 Highway 79

Claiborne Parish, LA
	 
	 	 	 	 
	73.

	 	Magnolia Pipeline

Company
	 	Weller Station

21 acres more or less

2311 Highway 534

Homer, LA
	 
	 	 	 	 
	74.

	 	Lion Oil Company
	 	Perry Tank Farm

4021 Calion Highway

Union County, AR
	 
	 	 	 	 
	75.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	Constantine Tank Farm

72 acres more or less

Shuler Rd.

Union County, AR
	 
	 	 	 	 
	76.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	Champagnolle Landing Property

45.8 acres more or less

Union County, AR
	 
	 	 	 	 
	77.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	American (Amoco) Tank Farm

30 acres more or less

El Dorado Industrial Park

El Dorado, AR

 

- vi -

 

	 	 	 	 	 
	 	 	Company	 	Owned Location
	 
	 	 	 	 
	78.

	 	El Dorado Pipeline

Company
	 	13.22 acre plot in Columbia County conveyed by special warranty deed
	 
	 	 	 	 
	79.

	 	El Dorado Pipeline

Company
	 	5 acre plot in Columbia County conveyed by special warranty deed
	 
	 	 	 	 
	80.

	 	El Dorado Pipeline

Company
	 	Pipeline system conveyed by quitclaim in Union County, AR
	 
	 	 	 	 
	81.

	 	El Dorado Pipeline

Company
	 	Pipeline system conveyed by quitclaim in Columbia County, AR
	 
	 	 	 	 
	82.

	 	Magnolia Pipeline

Company
	 	Pipeline from Finney to Haynesville
	 
	 	 	 	 
	83.

	 	Lion Oil Company
	 	Real property related to the pipeline gathering system located in
Columbia, Nevada, and Ouachita Counties, AR

III. Leased Real Property

  With respect to the Leased Real Property listed below, Borrower, at its sole cost
and expense must provide the following items within 90 days of the Effective Date (subject to
Borrower using commercially reasonable efforts to obtain any required landlord consents so long as
the aggregate value of the leasehold interest for which no landlord consent has been received does
not exceed $20,000,000): (i) a Leasehold Mortgage with respect to such leased property and related
assets duly executed and in recordable form ; (ii) a Leasehold Title Insurance Policy; (iii) Local
Counsel Leasehold Mortgage Enforceability opinions; (iv) a certified copy of the lease between the
landlord and such Borrower with respect to the real property, (v) a subordination, attornment and
non-disturbance agreement between the landlord (and any fee mortgagee, if requested by the
Collateral Agent or the Required Lenders) with respect to such real property and the Collateral
Agent, and (vi) such other documents or instruments (including guarantees) as the Collateral Agent
or the Required Lenders may reasonably require with respect to such leasehold property.

	 	 	 	 	 
	 	 	Company	 	Leased Locations
	 
	1.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	Offices and Parking

1001 School Street

El Dorado, AR
	 
	 	 	 	 
	2.

	 	Lion Oil Company
	 	Office Space in Regions Bank Building

100 East Peach Street

El Dorado, AR
	 
	 	 	 	 
	3.

	 	Lion Oil Company
	 	0.413 acres adjacent to Trinity Asphalt’s
property in Rusk County, TX

 

- vii -

 

	 	 	 	 	 
	 	 	Company	 	Leased Locations
	 
	 	 	 	 
	4.

	 	Lion Oil Company
	 	0.3 acres related to three leased storage
tanks , related truck scales and hot oil
heater in Rusk County, TX
	 
	 	 	 	 
	5.

	 	Lion Oil Company
	 	2501 Port Place

Muskogee, OK
	 
	 	 	 	 
	6.

	 	Lion Oil Company
	 	0.32 acres known as Tract 3 in El Dorado, AR
	 
	 	 	 	 
	Lion Oil Trading & Transportation, Inc., El Dorado Pipeline Company, and Magnolia
Pipeline Company have a large number of leases and easements pertaining to rights-of
way and pump stations within the crude oil gathering system. Most of the leased pump
stations are at remote gathering points and truck unloading sites throughout the
gathering system. The sites include:
	 
	 	 	 	 
	7.

	 	Lion Oil Company
	 	Fouke Station, near Fouke, AR
	 
	 	 	 	 
	8.

	 	Lion Oil Company
	 	Spirit Lake, near Garland City, AR
	 
	 	 	 	 
	9.

	 	Lion Oil Company
	 	Rook Station, near Lewisville, AR
	 
	 	 	 	 
	10.

	 	Lion Oil Company
	 	Buckner Station, near Buckner, AR
	 
	 	 	 	 
	11.

	 	Lion Oil Company
	 	Tank 435 at Magnolia Station

Columbia County, AR
	 
	 	 	 	 
	12.

	 	Lion Oil Company
	 	Colquitt Truck Storage, near Colquitt, LA
	 
	 	 	 	 
	13.

	 	Lion Oil Company
	 	Colquitt Storage, near Colquitt, LA
	 
	 	 	 	 
	14.

	 	Lion Oil Company
	 	Tank 369, near Stephens, AR
	 
	 	 	 	 
	15.

	 	Lion Oil Company
	 	Tank 370, near Stephens, AR
	 
	 	 	 	 
	16.

	 	Lion Oil Company
	 	Pace City Storage, near Pace City, AR
	 
	 	 	 	 
	17.

	 	Lion Oil Company
	 	Sandy Bend Storage, near Strong, AR
	 
	 	 	 	 
	18.

	 	Lion Oil Company
	 	Urbana Storage, near Urbana, AR

 

- viii -

 

	 	 	 	 	 
	 	 	Company	 	Leased Locations
	 
	 	 	 	 
	19.

	 	Lion Oil Company
	 	Like Creek Storage, near the Ouachita River
Bridge on U.S. Highway 63, Union County, AR
	 
	 	 	 	 
	20.

	 	Lion Oil Company
	 	Battery 2 Storage, west of El Dorado, AR
	 
	 	 	 	 
	21.

	 	Lion Oil Company
	 	Battery 3 Storage, west of El Dorado, AR
	 
	 	 	 	 
	22.

	 	Lion Oil Company
	 	Caddo Fee Storage, east of El Dorado, AR
	 
	 	 	 	 
	23.

	 	Lion Oil Company
	 	Modesette Storage, east of El Dorado, AR
	 
	 	 	 	 
	24.

	 	Lion Oil Company
	 	Big Heart Shuler Storage, west of El Dorado, AR
	 
	 	 	 	 
	25.

	 	Lion Oil Company
	 	Lion Shuler Pump Station, west of El Dorado, AR
	 
	 	 	 	 
	26.

	 	Lion Oil Company
	 	Reactor Storage (FCC Reactor) at the storage
facility near Heater Specialists, Inc.
	 
	 	 	 	 
	27.

	 	Lion Oil Company
	 	Easement from Lion Oil Company to TE Products
Pipeline Company, LLC for below ground
pipeline at Memphis Terminal, dated Nov. 20,
2008
	 
	 	 	 	 
	28.

	 	Lion Oil Company
	 	Easement and right-of-way granted from
ExxonMobil Refining and Supply Company to Lion
Oil Company, allowing Lion Oil Company to move
underground pipelines above ground, crossing
ExxonMobil’s roadway at Memphis Terminal,
pursuant to Easement Agreement dated May 19,
2003
	 
	 	 	 	 
	29.

	 	Lion Oil Company
	 	License for overhead truss from BNSF Railway
Company to Lion Oil Company for the Memphis
Terminal, dated Nov. 28, 2007
	 
	 	 	 	 
	30.

	 	Lion Oil Company
	 	License for overhead truss from Burlington
North & Santa Fe Railway Company to Lion Oil
Company, made Apr. 1, 2001, effective Mar. 27,
2002
	 
	 	 	 	 
	31.

	 	Lion Oil Company
	 	Site Access License from ExxonMobil
Corporation to Lion Oil Company to perform
environmental investigations and remediation
work at the Memphis Terminal, dated Oct. 1,
2001
	 
	 	 	 	 
	32.

	 	Lion Oil Company
	 	Site Access License from Lion Oil Company to
ExxonMobil Corporation to perform
environmental investigations and remediation
work at the Memphis Terminal, dated Oct. 1,
2001
	 
	 	 	 	 
	33.

	 	Lion Oil Company
	 	Sewer easement at Memphis Terminal

 

- ix -

 

	 	 	 	 	 
	 	 	Company	 	Leased Locations
	 
	 	 	 	 
	34.

	 	Lion Oil Company
	 	Pipeline Easement at Nashville Terminal
granted originally from W.G. Bush to Apex Oil
in Mar. 1936; transferred from Apex Oil to
Monsanto to Tosco to Lion and made permanent
in 1989 by an agreement with Signal Mountain
Cement Company
	 
	 	 	 	 
	35.

	 	Lion Oil Company
	 	Easement at Nashville Terminal from the
Metropolitan Government of Nashville and
Davidson County to Lion Oil Company, dated
Jan. 9, 2009
	 
	 	 	 	 
	36.

	 	Lion Oil Company
	 	Easement from Lion Oil Company to Entergy
Arkansas, Inc. and Easement from Entergy
Arkansas, Inc. to Lion Oil Company, both
unexecuted, for a property “swap” adjacent to
the El Dorado Refinery and to the Entergy
substation. Substation upgrade was completed
in 2004 even though documents remain unsigned.
	 
	 	 	 	 
	37.

	 	Lion Oil Company
	 	0.08 acres at El Dorado Airport
	 
	 	 	 	 
	38.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	A parcel of land in Lafayette County, AR
laying S. of U.S. Highway 82 W. and E. of CR 5
in the NE 1/4 of the SW 1/4 of Sec. 14-T16S-R25W.
This parcel is approximately 1,200 sq. ft.
beginning 50 ft. W. of the S. vent pipe.
	 
	 	 	 	 
	39.

	 	Magnolia Pipeline

Company
	 	Senior Pump Station

2040 Doc Steed Road

Minden, LA
	 
	 	 	 	 
	40.

	 	Magnolia Pipeline

Company
	 	Finney Pump Station

11705 Ellerbe Road

Shreveport, LA
	 
	 	 	 	 
	41.

	 	Lion Oil Trading
and Transportation,
Inc.
	 	El Dorado Pipeline Offices,
Commencing at NE corner of Sec. 32, Township
17 S., Range 15 W. and run N. 89 deg. 17 mins.
59 secs. W. 1257.62 ft.; thence S. 89 deg. 49
mins. 49 secs. E. 266.91 ft. to a set of 5/8”
capped rebar; thence S. 1 deg. 45 mins. 23
secs. E. 267.83 ft. to a fence corner post;
thence S. 1 deg. 45 mins. 24 secs. E. 418.22
ft. to a fence corner post; thence S. 51 degs.
05 mins. 05 secs. W. 321.65 ft. to a fence
corner post; thence N. 0 degs. 23 mins. 22
secs. E. 318.63 ft. to a fence corner post;
thence N. 82 degs. 18 mins. 10 secs. E. 3.11
ft. to a fence corner post; thence N. 0 degs.
42 mins. 22 secs. E. 347.90 ft. to an existing
fence corner post; thence continuing N. along
said line, 267.69 ft. back to the point of
beginning (5.308 acres).

 

- x -

 

Schedule 6.02(a)

Existing Liens

	 	 	 	 	 	 	 	 	 	 	 
	Debtor Name	 	Jurisdiction	 	File Date	 	File #	 	Secured Party	 	Collateral
	 
	Lion Oil Company
	 	AR SOS	 	4/20/2009	 	7131448271	 	Canon Financial Services	 	Specific equipment leased pursuant to Lease #001-0195540-018 and all general intangibles and accounts receivable related thereto
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	4/20/2009	 	7131657814	 	Canon Financial Services	 	Specific equipment leased pursuant to Lease #001-0195540-019 and all general intangibles and accounts receivable related thereto

 

 

 

Schedule 6.02(b)

Existing Indebtedness

$12.5 Million letter of credit on application of Lion Trading & Transportation, Inc. in favor of
Shell Trading (US) Company

 

 

 

Schedule 6.02(e)

Existing Investments

None.

 

 

 

EXHIBIT A

FORM OF NOTICE OF BORROWING

April 27, 2011

Bank Hapoalim B.M.,

as a Lender under the

below reference Financing Agreement

1177 Avenue of the Americas

New York, NY 10036

Attn: Maxine Levy

Fax: 212-782-2141

Bank Leumi USA,

as Collateral Agent and a Lender under the

below reference Financing Agreement

564 Fifth Avenue

New York NY 10036

Attn: Gil Hershman

Fax: 212-626-1072

Israel Discount Bank of New York,

as a Lender under the

below-referenced Financing Agreement

511 Fifth Avenue

New York NY 10017

Attn: Roy Nachimzon

Fax: 212-551-8259

RE: Notice of Borrowing under the Financing Agreement, to be dated on or
about April 29, 2011 (such agreement as amended, restated, supplemented,
modified or otherwise changed from time to time, including any replacement
agreement therefore, being hereinafter referred to as, the “Financing
Agreement”), by and among LION OIL COMPANY, an Arkansas corporation (the
“Borrower”), each subsidiary of the Borrower listed as a
“Guarantor” on the signature pages thereto (each a
“Guarantor” and collectively, the “Guarantors”), the Lenders
(as defined therein), and Bank Leumi USA, in its capacity as collateral agent
for the Lenders (in such capacity, the “Collateral Agent”).

Ladies and Gentlemen:

Reference hereby is made to the Financing Agreement. Capitalized terms used herein, and not
otherwise defined herein, have their respective meanings given them in the Financing Agreement.

Delek US Holdings, Inc., a Delaware corporation (the “Parent”), hereby gives
irrevocable notice to each Lender on behalf of the Borrower, in lieu of the notice required under
Section 2.02(a) of the Financing Agreement, that the Borrower hereby requests Loans under the
Financing Agreement, and sets forth below the information relating to such proposed Loans
(collectively, the “Proposed Borrowings”) as required by Section 2.02(a) of the Financing
Agreement.

a. The Business Day of the Proposed Borrowings is April 29, 2011.

 

 

 

b. The amount of the Proposed Borrowing for each Lender is:

(i) for Bank Hapoalim B.M., $33,333,333.34;

(ii) for Bank Leumi USA, $33,333,333.33; and

(iii) for Israel Discount Bank of New York, $33,333,333.33.

c. The Proposed Borrowing shall be a Reference Rate Loan.

d. The proceeds of the Proposed Borrowings shall be used to refinance existing indebtedness of
the Borrower owing to the Seller, to pay fees and expenses in connection with the transactions
contemplated by the Financing Agreement, and for general working capital and corporate purposes of
the Borrower, including, without limitation, working capital payments under the Acquisition
Agreement.

e. The Proposed Borrowings are to be made pursuant to the instructions set forth in a separate
disbursement agreement to be entered into on or prior to the date of the Proposed Borrowings. In
providing this notice, the Parent hereby agrees that the Parent shall be liable for any and all
losses, costs and expenses of the Lenders arising herefrom.

[SIGNATURE PAGE FOLLOWS]

 

 

 

	 	 	 	 	 
	 	Very truly yours,

DELEK US HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

 

Acknowledged and Agreed:

	 	 	 	 	 
	LION OIL COMPANY

	 	 
	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

 

 

EXHIBIT B

FORM OF LIBOR NOTICE

[LETTERHEAD OF BORROWER]

Israel Discount Bank of New York,

as a Lender under the

below-referenced Financing Agreement

511 Fifth Avenue

New York NY 10017

Attn: Roy Nachimzon

Fax: 212-551-8259

Bank Leumi USA,

as Collateral Agent and a Lender under the

below reference Financing Agreement

564 Fifth Avenue

New York NY 10036

Attn: Gil Hershman

Fax: 212-626-1072

Bank Hapaolim B.M.,

as a Lender under the

below reference Financing Agreement

1177 Avenue of the Americas

New York, NY 10036

Attn: Maxine Levy

Fax: 212-782-2141

Ladies and Gentlemen:

Reference is made to the Financing Agreement, dated as of April 29, 2011 (such agreement as
amended, restated, supplemented, modified or otherwise changed from time to time, including any
replacement agreement therefore, being hereinafter referred to as, the “Financing
Agreement”), by and among Lion Oil Company., an Arkansas corporation (“Borrower”), each
subsidiary of the Borrower listed as a “Guarantor” on the signature pages thereto (each a
“Guarantor” and collectively, the “Guarantors”), the Lenders (as defined therein)
from time to time party thereto, and Bank Leumi USA, in its capacity as collateral agent for the
Lenders (in such capacity, the “Collateral Agent”). Capitalized terms used herein and not
otherwise defined herein shall have the respective meanings ascribed to them in the Financing
Agreement.

This LIBOR Notice represents the Borrower’s request to [convert into] [continue as] [LIBOR
Rate Loans] [Reference Rate Loans] $_____1 of the outstanding principal amount of the
Term Loan (the “Requested Loan”)[, and is a written confirmation of the telephonic notice
of such election previously given to the each Lender].

[Such Requested LIBOR Rate Loan will have an Interest Period of [one] [two] [three] month(s),
commencing on _____.]

[This LIBOR Notice further confirms the Borrower’s acceptance, for purposes of determining the
rate of interest based on the LIBOR Rate under the Financing Agreement, of the LIBOR Rate as
determined pursuant to the Financing Agreement.]

The undersigned certifies that no Event of Default has occurred and is continuing or will
result from the [conversion] [continuation] of the Requested Loan or will occur or be continuing on
the date of the Requested Loan.

Dated:
                                        

	 	 	 	 	 
	 	LION OIL COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

	 	 	 
	1	 	Borrower (i) shall not have more than 5 LIBOR Rate
Loans in effect at any given time, and (ii) may only exercise the LIBOR Option
for LIBOR Rate Loans of at least $10,000,000 and integral multiples of $500,000
in excess thereof.

LIBOR
NOTICE

 

 

 

EXHIBIT C

FORM OF ASSIGNMENT AND ACCEPTANCE

This ASSIGNMENT AND ACCEPTANCE AGREEMENT (“Assignment Agreement”) is entered into as
of
 _____ __, 20
 _____ 
between 
 ________ (“Assignor”) and 
 _____ 
(“Assignee”).
Reference is made to the agreement described in Item 2 of Annex I annexed hereto
(such agreement as amended, restated, supplemented, modified or otherwise changed from time to
time, including any replacement agreement therefore, the “Financing Agreement”).
Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in
the Financing Agreement.

1. In accordance with the terms and conditions of Section 10.07 of the Financing
Agreement, the Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases
and assumes from the Assignor, that interest in and to the Assignor’s rights and obligations under
the Financing Agreement and the other Loan Documents as of the Effective Date (as defined below)
with respect to the Obligations owing to the Assignor, and the Assignor’s portion of the Term Loan
as specified on Annex I.

2. The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of
the interest being assigned by it hereunder and that such interest is free and clear of any adverse
claim and (ii) it has full power and authority, and has taken all action necessary, to execute and
deliver this Assignment Agreement and to consummate the transactions contemplated hereby; (b) makes
no representation or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Financing Agreement and the other
Loan Documents or the execution, legality, validity, enforceability, genuineness, sufficiency or
value of the Financing Agreement and the other Loan Documents or any other instrument or document
furnished pursuant thereto; and (c) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any Loan Party or the performance or
observance by any Loan Party of any of its obligations under the Financing Agreement and the other
Loan Documents or any other instrument or document furnished pursuant thereto.

3. The Assignee (a) confirms that it has received copies of the Financing Agreement and the
other Loan Documents, together with copies of the financial statements referred to therein and such
other documents and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment Agreement; (b) agrees that it will, independently and
without reliance upon the Collateral Agent, the Assignor, or any other Lender, based on such
documents and information as it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under the Financing Agreement and the other Loan
Documents; (c) confirms that it complies with the criteria set forth in Section 10.07 of
the Financing Agreement necessary to acquire the interests being assigned and to become a Lender;
(d) appoints and authorizes the Collateral Agent to take such action as agent on its behalf and to
exercise such powers under the Financing Agreement and the other Loan Documents as are delegated to
the Collateral Agent by the terms thereof, together with such powers as are reasonably incidental
thereto; (e) agrees that it will perform in accordance with their terms all of the obligations
which by the terms of the Financing Agreement and the other Loan Documents are required to be
performed by it as a Lender; and (f) attaches the forms prescribed by the Internal Revenue Service
of the United States certifying as to the Assignee’s status for purposes of determining exemption
from United States withholding taxes with respect to all payments to be made to the Assignee under
the Financing Agreement or such other documents as are necessary to indicate that all such payments
are subject to such rates at a rate reduced by an applicable tax treaty.

 

 

 

4. The effective date of this Assignment Agreement (the “Effective Date”) shall be the
latest of (a) the date of the execution hereof by the Assignor and the Assignee[, and, if required,
the
Borrower]1, (b) the settlement date specified on Annex I, and (c) the
receipt by Assignor of the Purchase Price specified in Annex I.

5. As of the Effective Date (a) the Assignee shall be a party to the Financing Agreement and,
to the extent of the interest assigned pursuant to this Assignment Agreement, have the rights and
obligations of a Lender thereunder and under the Loan Documents, and (b) the Assignor shall, to the
extent of the interest assigned pursuant to this Assignment Agreement, relinquish its rights and be
released from its obligations under the Financing Agreement and the other Loan Documents.

6. From and after the Effective Date, the Credit Parties and the Collateral Agent shall make
all payments under the Financing Agreement and the other Loan Documents in respect of the interest
assigned hereby (including, without limitation, all payments of principal, interest and fees (if
applicable) with respect thereto) to the Assignee. The Assignor and the Assignee shall make all
appropriate adjustments in payments under the Financing Agreement and the other Loan Documents for
periods prior to the Effective Date directly between themselves on the Effective Date.

7. THIS ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

8. EACH PARTY HERETO HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM BASED UPON OR ARISING OUT OF THIS ASSIGNMENT AGREEMENT OR ANY OF THE TRANSACTIONS
RELATED HERETO, AND AGREES THAT ANY SUCH ACTION, PROCEEDING OR COUNTERCLAIM SHALL BE TRIED BEFORE A
COURT AND NOT BEFORE A JURY.

9. This Assignment Agreement may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and delivered shall be
deemed an original, but all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of this Assignment Agreement by facsimile or electronic mail
shall be equally effective as delivery of an original executed counterpart.

[Remainder of page left intentionally blank.]

 

	 	 	 
	1	 	Borrower’s consent is not required if a Default or an
Event of Default has occurred and is continuing on the date of the assignment.

 

 

 

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

	 	 	 	 	 
	 	[ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Date:  	 	 
	 
	 	[ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Date:  	 	 

	 	 	 	 	 
	[Required Consents (if any):2	 	 
	 
	 	 	 	 
	LION OIL COMPANY	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:                    ]	 	 

 

	 	 	 
	2	 	Not required if a Default or an Event of Default has
occurred and is continuing at the time of the assignment.

 

 

 

ANNEX FOR ASSIGNMENT AND ACCEPTANCE

ANNEX I

	1.	 	Borrower: Lion Oil Company, an Arkansas corporation (the “Borrower”)

	2.	 	Name and Date of Financing Agreement: Financing Agreement dated as of April 29, 2011 (such
agreement as amended, restated, supplemented, modified or otherwise changed from time to time,
including any replacement agreement therefore, the “Financing Agreement”), by and
among the Borrower, each subsidiary of the Borrower listed as a “Guarantor” on the
signature pages thereto (each a “Guarantor” and collectively, the
“Guarantors”), the Lenders (as defined therein) from time to time party thereto, and
Bank Leumi USA, in its capacity as collateral agent for the Lenders (in such capacity, the
“Collateral Agent”).

	 	 	 	 	 	 	 
	3.

	 	Amount of Term Loan:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	4.

	 	Purchase Price:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	5.

	 	Settlement Date:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	6.

	 	Notice and Payment Instructions, etc.	 	 	 	 

	 	 	 	 	 
	Assignee:

	 	Assignor:	 	 
	 
	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	
 

	 	 

	 	 
	Attn: _____________________________________________

	 	Attn: _____________________________________________	 	 
	Fax No.: ___________________________________________

	 	Fax No.: ___________________________________________	 	 
	 
	 	 	 	 
	Bank Name:

	 	Bank Name:	 	 
	ABA Number:

	 	ABA Number:	 	 
	Account Name:

	 	Account Name:	 	 
	Account Number:

	 	Account Number:	 	 
	Sub-Account Name:

	 	Sub-Account Name:	 	 
	Sub-Account Number:

	 	Sub-Account Number:	 	 
	Reference:

	 	Reference:	 	 
	Attn:

	 	Attn:	 	 

 

 

 

EXHIBIT D

FORM OF TERM NOTE

THIS TERM NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE
WITH THE TERMS AND PROVISIONS OF THE FINANCING AGREEMENT REFERRED TO BELOW.

			
	 	 	 
	$_____

	 	New York, New York

______ __, 2007

FOR VALUE RECEIVED, the undersigned, LION OIL COMPANY, an Arkansas corporation (the
“Borrower”), hereby promises to pay [NAME OF LENDER], or its successors or assigns, (the
“Payee”) the Principal Amount set forth above, or, if less, the aggregate unpaid principal
amount of the Payee’s Term Loans as defined in that certain Financing Agreement dated as of April
29, 2011 (such agreement as amended, restated, supplemented, modified or otherwise changed from
time to time, including any replacement agreement therefore, the “Financing Agreement”), by
and among the Borrower, each subsidiary of the Borrower listed as a “Guarantor” on the
signature pages thereto (each a “Guarantor” and collectively, the “Guarantors”),
the Lenders (as defined therein) from time to time party thereto, and Bank Leumi USA
(“Leumi”), in its capacity as collateral agent for the Lenders (in such capacity, the
“Collateral Agent”). Capitalized terms used herein without definition are used as defined
in the Financing Agreement.

The principal amount of this Term Note shall be paid in the amounts and on the dates specified
in Section 2.03 of the Financing Agreement.

The Borrower promises to pay interest on the unpaid principal amount of the Payee’s Term Loan
from the date of such Term Loan until such principal amount is paid in full in cash, at the
interest rates and at the times provided in the Financing Agreement. All payments of principal and
interest shall be made directly to the Payee in Dollars in immediately available funds at its
Payment Office.

This Term Note is entitled to the benefits of the Financing Agreement and is subject to
optional and mandatory prepayments in whole or in part as provided in the Financing Agreement.
This Term Note is secured by the Collateral and is entitled to the benefits of the Security
Agreement. Upon the occurrence and continuation of any Event of Default under the Financing
Agreement, all principal and all accrued interest then remaining unpaid on this Term Note may be
declared to be immediately due and payable as provided in the Financing Agreement.

Term Loans made by the Payee shall be evidenced by one or more records or accounts maintained
by the Payee in the ordinary course of business. The Payee may also attach schedules to this Term
Note and endorse thereon the date, amount and maturity of its Term Loans and all payments made on
the Term Loans; provided that any failure of the Payee to make any such recordation or endorsement,
or any error in any such recordation or endorsement, shall not affect the Obligations of the
Borrower under this Term Note.

The Borrower hereby waives diligence, presentment, demand, protest, notice of intent to
accelerate, notice of acceleration, and any other notice of any kind. No failure on the part of
the holder hereof to exercise, and no delay in exercising, any right, power or privilege hereunder
shall operate as a waiver thereof or a consent thereto; nor shall a single or partial exercise of
any such right,
power or privilege preclude any other or further exercise thereof or the exercise of any other
right, power or privilege.

 

 

 

THIS TERM NOTE AND THE OBLIGATIONS OF THE BORROWER HEREUNDER SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

[SIGNATURE PAGE FOLLOWS]

 

2

 

IN WITNESS WHEREOF, the Borrower has caused this Term Note to be executed and delivered by its
duly authorized officer as of the day and year and at the place set forth above.

	 	 	 	 	 
	 	LION OIL COMPANY.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:Exhibit 10.6

Exhibit 10.6

EXECUTION VERSION

REIMBURSEMENT AND GUARANTY AGREEMENT

dated as of April 29, 2011

among

DELEK US HOLDINGS, INC.,

LION OIL COMPANY,

LION OIL TRADING & TRANSPORTATION, INC.,

and

GOLDMAN SACHS LENDING PARTNERS LLC

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 1. DEFINITIONS AND INTERPRETATION
	 	 	2	 
	 
	 	 	 	 
	1.1. Definitions
	 	 	2	 
	1.2. Accounting Terms
	 	 	15	 
	1.3. Interpretation, Etc.
	 	 	15	 
	 
	 	 	 	 
	SECTION 2. REIMBURSEMENT OBLIGATIONS; SUBSTITUTION AND EXTENSIONS; CASH COLLATERAL
	 	 	16	 
	 
	 	 	 	 
	2.1. Letters of Credit and Reimbursement Obligations
	 	 	16	 
	2.2. Interest on Obligations
	 	 	17	 
	2.3. Fees
	 	 	17	 
	2.4. General Provisions Regarding Payments
	 	 	17	 
	2.5. Taxes; Withholding, Etc.
	 	 	18	 
	2.6. Substitutions and Extensions
	 	 	19	 
	2.7. Cash Collateral
	 	 	20	 
	 
	 	 	 	 
	SECTION 3. CONDITIONS PRECEDENT
	 	 	21	 
	 
	 	 	 	 
	3.1. Closing Date
	 	 	21	 
	 
	 	 	 	 
	SECTION 4. REPRESENTATIONS AND WARRANTIES 
	 	 	24	 
	 
	 	 	 	 
	4.1. Organization; Requisite Power and Authority; Qualification
	 	 	24	 
	4.2. Equity Interests and Ownership
	 	 	24	 
	4.3. Due Authorization
	 	 	24	 
	4.4. No Conflict
	 	 	24	 
	4.5. Governmental Consents
	 	 	24	 
	4.6. Binding Obligation
	 	 	24	 
	4.7. Historical Financial Statements
	 	 	25	 
	4.8. Projections
	 	 	25	 
	4.9. No Material Adverse Effect
	 	 	25	 
	4.10. Adverse Proceedings, Etc.
	 	 	25	 
	4.11. Payment of Taxes
	 	 	25	 
	4.12. Environmental Matters
	 	 	26	 
	4.13. No Defaults
	 	 	26	 
	4.14. Governmental Regulation
	 	 	26	 
	4.15. Federal Reserve Regulations; Exchange Act
	 	 	26	 
	4.16. Employee Matters
	 	 	27	 
	4.17. Employee Benefit Plans
	 	 	27	 
	4.18. Certain Fees
	 	 	27	 
	4.19. Solvency
	 	 	28	 

 

 

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	4.20. Related Agreements
	 	 	28	 
	4.21. Compliance with Statutes, Etc.
	 	 	28	 
	4.22. Disclosure
	 	 	28	 
	4.23. PATRIOT Act
	 	 	28	 
	 
	 	 	 	 
	SECTION 5. AFFIRMATIVE COVENANTS
	 	 	29	 
	 
	 	 	 	 
	5.1. Financial Statements and Other Reports
	 	 	29	 
	5.2. Existence
	 	 	31	 
	5.3. Payment of Taxes and Claims
	 	 	31	 
	5.4. Maintenance of Properties
	 	 	31	 
	5.5. Insurance
	 	 	32	 
	5.6. Books and Records; Inspections
	 	 	32	 
	5.7. Compliance with Laws
	 	 	32	 
	5.8. Environmental
	 	 	32	 
	5.9. Further Assurances
	 	 	34	 
	5.10. Oil Transactions
	 	 	34	 
	 
	 	 	 	 
	SECTION 6. NEGATIVE COVENANTS
	 	 	34	 
	 
	 	 	 	 
	6.1. Liens
	 	 	34	 
	6.2. Fundamental Changes
	 	 	34	 
	6.3. Conduct of Business
	 	 	34	 
	6.4. Amendments or Waivers of Organizational Documents and Certain Related Agreements
	 	 	34	 
	 
	 	 	 	 
	SECTION 7. GUARANTY
	 	 	35	 
	 
	 	 	 	 
	7.1. Guaranty of the Obligations
	 	 	35	 
	7.2. Payment by Guarantors
	 	 	35	 
	7.3. Liability of Guarantors Absolute
	 	 	35	 
	7.4. Waivers by Guarantors
	 	 	37	 
	7.5. Guarantors’ Rights of Subrogation, Contribution, Etc.
	 	 	38	 
	7.6. Subordination of Other Obligations
	 	 	38	 
	7.7. Continuing Guaranty
	 	 	38	 
	7.8. Authority of Guarantors or LOTT
	 	 	38	 
	7.9. Financial Condition of LOTT
	 	 	39	 
	7.10. Bankruptcy, Etc.
	 	 	39	 
	 
	 	 	 	 
	SECTION 8. EVENTS OF DEFAULT
	 	 	40	 
	 
	 	 	 	 
	8.1. Events of Default
	 	 	40	 

 

 

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 9. MISCELLANEOUS
	 	 	42	 
	 
	 	 	 	 
	9.1. Notices
	 	 	42	 
	9.2. Expenses
	 	 	43	 
	9.3. Indemnity
	 	 	43	 
	9.4. Set-Off
	 	 	44	 
	9.5. Amendments and Waivers
	 	 	44	 
	9.6. Successors and Assigns
	 	 	45	 
	9.7. Independence of Covenants
	 	 	45	 
	9.8. Survival of Representations, Warranties and Agreements
	 	 	45	 
	9.9. No Waiver; Remedies Cumulative
	 	 	45	 
	9.10. Marshalling; Payments Set Aside
	 	 	45	 
	9.11. Severability
	 	 	46	 
	9.12. Headings
	 	 	46	 
	9.13. APPLICABLE LAW
	 	 	46	 
	9.14. CONSENT TO JURISDICTION
	 	 	46	 
	9.15. WAIVER OF JURY TRIAL
	 	 	47	 
	9.16. Confidentiality
	 	 	47	 
	9.17. Usury Savings Clause
	 	 	48	 
	9.18. Effectiveness; Counterparts
	 	 	48	 
	9.19. Entire Agreement
	 	 	48	 
	9.20. PATRIOT Act
	 	 	49	 
	9.21. No Fiduciary Duty
	 	 	49	 

 

 

 

	 	 	 	 	 	 	 
	APPENDICES:

	 	 	A	 	 	Notice Addresses
	 
	 	 	 	 	 	 
	SCHEDULES:

	 	 	1.1	 	 	List of Existing LOCs
	 

	 	 	4.1	 	 	Jurisdictions of Organization and Qualification

	 

	 	 	4.2	 	 	Equity Interests and Ownership
	 
	 	 	 	 	 	 
	ANNEXES:

	 	 	I	 	 	Letter of Credit (Saudi)
	 

	 	II	 	 	Letter of Credit (Tarfigura)

	 

	 	III	 	 	Letter of Credit (Chevron)
	 
	 	 	 	 	 	 
	EXHIBITS:
	 	 	 	 	 	 
	 

	 	 	A	 	 	Opinions of Counsel
	 

	 	 	B-1	 	 	Closing Date Certificate
	 

	 	 	B-2	 	 	Solvency Certificate
	 

	 	 	C	 	 	Pledge and Security Agreement
	 

	 	 	D	 	 	Incumbency Certificate

 

 

 

REIMBURSEMENT AND GUARANTY AGREEMENT

This REIMBURSEMENT AND GUARANTY AGREEMENT, dated as of April 29, is entered into by and among
DELEK US HOLDINGS, INC., a Delaware corporation (“DUHI”), LION OIL COMPANY, an Arkansas corporation
(“Lion”), LION OIL TRADING & TRANSPORTATION, INC., an Arkansas corporation (“LOTT”) and GOLDMAN
SACHS LENDING PARTNERS LLC (“Goldman Sachs”).

RECITALS:

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

WHEREAS, Ergon, Inc., a Mississippi corporation (“Ergon”), is obligated to reimburse the banks
listed on Schedule 1.1 for payments made by such banks under the letters of credit listed on
Schedule 1.1 (the “Existing LOCs”) issued by such banks in support of oil purchase transactions
entered into from time to time by LOTT, which is a wholly-owned subsidiary of Lion;

WHEREAS, simultaneously with the execution and delivery of this Agreement (a) DUHI is
acquiring from Ergon, pursuant to the terms and conditions of the Acquisition Agreement, all of the
Equity Interests in Lion owned by Ergon (the “Acquisition”) and (b) at the request of and as a
financial accommodation to DUHI, Goldman Sachs is procuring the issuance by the Issuing Bank to
Ergon of certain letters of credit, copies of which are attached as Annexes I, II and III (as
amended, restated, or otherwise modified from time to time, each a “Letter of Credit” and
collectively, the “Letters of Credit”), entitling Ergon to make drawings thereunder to reimburse
itself if and when it reimburses the issuers of the Existing LOCs for payments made by them
thereunder;

WHEREAS, Goldman Sachs and its Affiliate, Goldman Sachs Group, Inc. (“Goldman Sachs Group”),
have entered into a reimbursement agreement with the Issuing Bank (as amended, restated, or
otherwise modified from time to time, the “BNY Reimbursement Agreement”), pursuant to which Goldman
Sachs Group has agreed to reimburse the Issuing Bank for payments made by the Issuing Bank under
the Letters of Credit and to indemnify and make other payments to the Issuing Bank under certain
circumstances, and Goldman Sachs has agreed to guarantee amounts owed by Goldman Sachs Group under
the BNY Reimbursement Agreement all as set forth more fully in the BNY Reimbursement Agreement;

WHEREAS, LOTT has agreed on the terms and conditions hereof to reimburse, and to indemnify
Goldman Sachs and hold Goldman Sachs harmless for and against, certain amounts paid or payable by
Goldman Sachs to the Issuing Bank under the BNY Reimbursement Agreement, all as more particularly
set forth herein; and

WHEREAS, the Guarantors have agreed to guarantee the obligations of LOTT hereunder, and Lion
and LOTT have agreed to secure their respective Obligations by granting to Goldman Sachs a First
Priority Lien on certain of their respective assets;

 

1

 

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:

“Acknowledgement Agreement” means that certain Acknowledgement Agreement, dated as of April
29, 2011, among Aron, LOTT, Lion and Bank Leumi USA, as collateral agent, as amended, amended and
restated, supplemented or otherwise modified from time to time.

“Acquisition” as defined in the recitals.

“Acquisition Agreement” means that certain Stock Purchase Agreement, dated as of March 17,
2011, among Ergon, Lion and DUHI.

“Acquisition Documents” means the Acquisition Agreement and the Related Agreements (as defined
in the Acquisition Agreement as in effect on the date hereof).

“Adverse Proceeding” means any action, suit, proceeding, hearing (in each case, whether
administrative, judicial or otherwise), governmental investigation or arbitration (whether or not
purportedly on behalf of DUHI or any of its Subsidiaries) at law or in equity, or before or by any
Governmental Authority, domestic or foreign (including any Environmental Claims), whether pending
or, to the knowledge of DUHI or any of its Subsidiaries, threatened against or affecting DUHI or
any of its Subsidiaries or any property of DUHI or any of its Subsidiaries.

“Affiliate” means, as applied to any Person, any other Person directly or indirectly
controlling, controlled by, or under common control with, that Person. For the purposes of this
definition, “control” (including, with correlative meanings, the terms “controlling”, “controlled
by” and “under common control with”), as applied to any Person, means the possession, directly or
indirectly, of the power (i) to vote 5% or more of the Securities having ordinary voting power for
the election of directors of such Person or (ii) to direct or cause the direction of the management
and policies of that Person, whether through the ownership of voting securities or by contract or
otherwise.

“Agreement” means this Reimbursement and Guaranty Agreement, dated as of April 29, 2011 as it
may be amended, restated, supplemented or otherwise modified from time to time.

“Applicable Margin’’ means 3.25% per annum

“Aron” means J. Aron & Company.

“Aron Agreement” means that certain Master Supply and Offtake Agreement, dated as of April 29,
2011, among Aron, Lion and LOTT.

 

2

 

“Aron Lien” means, collectively, the Liens granted in favor of Aron pursuant to the terms of
the Aron Agreement and the Pledge and Security Agreement.

“Authorized Officer” means, as applied to any Person, any individual holding the position of
chairman of the board (if an officer), chief executive officer, president, vice president (or the
equivalent thereof), chief financial officer, treasurer or assistant treasurer of such Person;
provided that the secretary or assistant secretary of such Person shall have delivered an
incumbency certificate to Goldman Sachs as to the authority of such Authorized Officer.

“Backstopped Saudi LOC” as defined in Section 2.6(b).

“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 greatest of (i) the Prime Rate
in effect on such day, (ii) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1% and
(iii) the sum of (a) the Eurodollar Rate that would be payable on such day plus (b) 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.

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

“BNY Reimbursement Agreement” as defined in the recitals.

“Business Day” 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.

“Capital Lease” means, as applied to any Person, any lease of any property (whether real,
personal or mixed) by that Person as lessee that, in conformity with GAAP, is or should be
accounted for as a capital lease on the balance sheet of that Person.

“Cash” means money, currency or a credit balance in any demand or Deposit Account.

“Change of Control” means, (i) any Person or “group” (within the meaning of Rules 13d-3 and
13d-5 under the Exchange Act) other than the Permitted Investor (a) shall have acquired beneficial
ownership or control of 35% or more on a fully diluted basis of the voting and/or economic interest
in the Equity Interests of Parent or (b) shall have obtained the power (whether or not exercised)
to elect a majority of the members of the board of directors (or similar governing body) of Parent;
(ii) Parent shall cease to beneficially own and control at least 51% on a fully diluted basis of
the economic and voting interests in the Equity Interests of DUHI; (iv)
DUHI shall cease to beneficially own and control at least 85.0% on a fully diluted basis of
the economic and voting interests in the Equity Interests of Lion; (v) Lion shall cease to
beneficially own and control at least 100% on a fully diluted basis of the economic and voting
interests in the Equity Interests of LOTT; (vi) the majority of the seats (other than vacant seats)
on the board of directors (or similar governing body) of Parent cease to be occupied by Persons who
either (a) were members of the board of directors of Parent on the Closing Date or (b) were
nominated for election by the board of directors of Parent, a majority of whom were directors on
the Closing Date or whose election or nomination for election was previously approved by 60% of
such directors.

 

3

 

“Closing Date” means the date hereof.

“Closing Date Certificate” means a Closing Date Certificate substantially in the form of
Exhibit B-1.

“Collateral” as defined in the Pledge and Security Agreement.

“Collateral Account” as defined in the Pledge and Security Agreement.

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

“Contractual Obligation” means, as applied to any Person, any provision of any Security issued
by that Person or of any indenture, mortgage, deed of trust, contract, undertaking, agreement or
other instrument to which that Person is a party or by which it or any of its properties is bound
or to which it or any of its properties is subject.

“Credit Document” means any of this Agreement, the Collateral Documents and all other
documents, certificates, instruments or agreements executed and delivered by or on behalf of an
Obligor for the benefit of Goldman Sachs 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 DUHI’s and its
Subsidiaries’ operations and not for speculative purposes.

“Debtor Relief Laws” means the Bankruptcy Code, and all other liquidation, conservatorship,
bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership,
insolvency, reorganization, or similar debtor relief laws of the United States or other applicable
jurisdictions from time to time in effect.

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

“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.

 

4

 

“Disqualified Equity Interests” means any Equity Interest which, by its terms (or by the terms
of any security or other Equity Interests into which it is convertible or for which it is
exchangeable), or upon the happening of any event or condition (i) matures or is mandatorily
redeemable (other than solely for Equity Interests which are not otherwise Disqualified Equity
Interests), pursuant to a sinking fund obligation or otherwise, (ii) is redeemable at the option of
the holder thereof (other than solely for Equity Interests which are not otherwise Disqualified
Equity Interests), in whole or in part, or (iii) provides for the scheduled payments or dividends
in cash.

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

“DUHI” as defined in the preamble.

“Employee Benefit Plan” means any “employee benefit plan” as defined in Section 3(3) of ERISA
which is or was sponsored, maintained or contributed to by, or required to be contributed by, DUHI
or any of its ERISA Affiliates.

“Environmental Claim” means any investigation, notice, notice of violation, claim, action,
suit, proceeding, demand, abatement order or other order or directive (conditional or otherwise),
by any Governmental Authority or any other Person, arising (i) pursuant to or in connection with
any actual or alleged violation of any Environmental Law; (ii) in connection with any Hazardous
Material or any actual or alleged Hazardous Materials Activity; or (iii) in connection with any
actual or alleged damage, injury, threat or harm to health, safety, natural resources or the
environment.

“Environmental Laws” means any and all current or future foreign or domestic, federal or state
(or any subdivision of either of them), statutes, ordinances, orders, rules, regulations,
judgments, Governmental Authorizations, or any other requirements of Governmental Authorities
relating to (i) environmental matters, including those relating to any Hazardous Materials
Activity; (ii) the generation, use, storage, transportation or disposal of Hazardous Materials; or
(iii) occupational safety and health, industrial hygiene, land use or the protection of human,
plant or animal health or welfare, in any manner applicable to DUHI or any of its Subsidiaries or
any Facility.

“Equity Interests” means any and all shares, interests, participations or other equivalents
(however designated) of capital stock of a corporation, any and all equivalent ownership interests
in a Person (other than a corporation), including partnership interests and membership interests,
and any and all warrants, rights or options to purchase or other arrangements or rights to acquire
any of the foregoing.

“Ergon” as defined in the recitals.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and any successor thereto.

 

5

 

“ERISA Affiliate” means, as applied to any Person, (i) any corporation which is a member of a
controlled group of corporations within the meaning of Section 414(b) of the Internal Revenue Code
of which that Person is a member; (ii) any trade or business (whether or not incorporated) which is
a member of a group of trades or businesses under common control within the meaning of Section
414(c) of the Internal Revenue Code of which that Person is a member; and (iii) any member of an
affiliated service group within the meaning of Section 414(m) or (o) of the Internal Revenue Code
of which that Person, any corporation described in clause (i) above or any trade or business
described in clause (ii) above is a member. Any former ERISA Affiliate of DUHI shall continue to
be considered an ERISA Affiliate of DUHI within the meaning of this definition with respect to the
period such entity was an ERISA Affiliate of DUHI and with respect to liabilities arising after
such period for which DUHI could be liable under the Internal Revenue Code or ERISA.

“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 has been 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)
or the failure to make by its due date a required installment under Section 430(j) of the Internal
Revenue Code with respect to any Pension Plan or the failure to make any required contribution to a
Multiemployer Plan; (iii) 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; (iv) the withdrawal by DUHI or any of its ERISA Affiliates
from any Pension Plan with two or more contributing sponsors or the termination of any such Pension
Plan resulting in liability to DUHI or any of its ERISA Affiliates pursuant to Section 4063 or 4064
of ERISA; (v) the institution by the PBGC of proceedings to terminate any Pension Plan, or the
occurrence of any event or condition which might constitute grounds under ERISA for the termination
of, or the appointment of a trustee to administer, any Pension Plan; (vi) the imposition of
liability on DUHI or any of its ERISA Affiliates pursuant to Section 4062(e) or 4069 of ERISA or by
reason of the application of Section 4212(c) of ERISA; (vii) the withdrawal of DUHI or any of its
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 therefor, or the receipt
by DUHI or any of its 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; (viii) the occurrence of an act
or omission which could give rise to the imposition on DUHI or any of its ERISA Affiliates of
material 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; (ix) the assertion of a material claim (other than routine claims for
benefits) against any Employee Benefit Plan other than a Multiemployer Plan or the assets thereof,
or against DUHI or any of its ERISA Affiliates in connection with any Employee Benefit Plan; (x)
receipt from the Internal Revenue Service of notice of the disqualification of any Pension Plan (or
any other Employee Benefit Plan intended to be qualified under Section
401(a) of the Internal Revenue Code) 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 or a violation of Section 436 of the Internal Revenue
Code.

 

6

 

“Eurodollar Rate” means, on any date of determination, the rate per annum obtained by dividing
(i) (a) the rate per annum equal to the rate determined by Administrative Agent 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
delivery on the first day of such period) with a term equivalent to such period in Dollars,
determined as of approximately 11:00 a.m. (London, England time) on such date, or (b) in the event
the rate referenced in the preceding clause (a) does not appear on such page or service or if such
page or service shall cease to be available, the rate per annum equal to the rate determined by
Goldman Sachs to be the offered rate on such other page or other service which displays an average
British Bankers Association Interest Settlement Rate for deposits (for delivery on the first day of
such period) with a term equivalent to such period in Dollars, determined as of approximately 11:00
a.m. (London, England time) on such date, or (c) in the event the rates referenced in the preceding
clauses (a) and (b) are not available, the rate per annum equal to the offered quotation rate to
first class banks in the London interbank market by JP Morgan Chase Bank, N.A. for deposits (for
delivery on the first day of the relevant period) in Dollars of amounts in same day funds
comparable to the principal amount of the Obligations for which the Eurodollar Rate is then being
determined with maturities comparable to such period as of approximately 11:00 a.m. (London,
England time) on such date.

“Event of Default” means each of the conditions or events set forth in Section 8.1.

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

“Existing LOCs” as defined in the recitals.

“Facility” means any real property (including all buildings, fixtures or other improvements
located thereon) now, hereafter or heretofore owned, leased, operated or used by DUHI or any of its
Subsidiaries or any of their respective predecessors.

“FATCA” means Sections 1471 through 1474 of the Internal Revenue Code (effective as of the
date hereof) and any regulations promulgated thereunder.

“Federal Funds Effective Rate” means for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of the Federal Reserve
System arranged by Federal funds brokers on such day, 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 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 Rate for such day shall be the average rate charged to Goldman Sachs on such day on such
transactions as determined by Goldman Sachs.

“Fee Letter” as defined in Section 9.19.

 

7

 

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

“Financing Agreement” means that certain Financing Agreement, dated as of April 29, 2011, by
and among Lion, as the borrower, certain subsidiaries of Lion, as guarantors, the lenders parties
thereto from time to time, Israel Discount Bank of New York and Bank Hapoalim, as Co-Documentation
Agents, and Bank Leumi USA, as amended, restated, supplemented or otherwise modified from time to
time.

“First Priority” means, with respect to any Lien purported to be created in any Collateral
pursuant to any Collateral Document, that, except as expressly set forth in the Aron Agreement and
the Pledge and Security Agreement, such Lien is the only Lien to which such Collateral is subject.

“Fiscal Quarter” means, with respect to any Person, a fiscal quarter of any Fiscal Year of
such Person.

“Fiscal Year” means (x) the fiscal year of DUHI and its Subsidiaries ending on December 31 of
each calendar year and (y) the fiscal year of Lion and its Subsidiaries ending on April 30 of each
calendar year.

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

“Goldman Sachs” as defined in the preamble.

“Goldman Sachs Group” as defined in the recitals.

“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.

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

“GS Related Parties” as defined in Section 2.1(a).

“Guaranteed Obligations” as defined in Section 7.1.

“Guarantors” means, collectively, Lion and DUHI.

“Guaranty” means the guaranty of each Guarantor set forth in Section 7.

 

8

 

“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 Persons in the vicinity of any Facility or
to the indoor or outdoor environment.

“Hazardous Materials Activity” means any past, current, proposed or threatened activity, event
or occurrence involving any Hazardous Materials, including the use, manufacture, possession,
storage, holding, presence, existence, location, Release, threatened Release, discharge, placement,
generation, transportation, processing, construction, treatment, abatement, removal, remediation,
disposal, disposition or handling of any Hazardous Materials, and any corrective action or response
action with respect to any of the foregoing.

“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 Goldman Sachs
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.

“Historical Financial Statements” means as of the Closing Date, (A) the audited financial
statements of DUHI and its Subsidiaries (other than Lion and any of its Subsidiaries) for the
immediately preceding three Fiscal Years, consisting of balance sheets and the related consolidated
statements of income, stockholders’ equity and cash flows for such Fiscal Years, certified by the
chief financial officer of DUHI that they fairly present, in all material respects, the financial
condition of DUHI and its Subsidiaries as at the dates indicated and the results of their
operations and their cash flows for the periods indicated, subject to changes resulting from audit
and normal year-end adjustments and (B) (i) the audited financial statements of Lion and its
Subsidiaries for the immediately preceding two Fiscal Years, consisting of balance sheets and the
related consolidated statements of income, stockholders’ equity and cash flows for such Fiscal
Years, and (ii) the unaudited financial statements of Lion and its Subsidiaries as of January 31,
2011, together with corresponding unaudited consolidated interim statements of operations for the
nine-month periods ending January 31, 2011 and 2010 and unaudited interim combined statements of
cash flows for the nine-month periods ending January 31, 2011 and 2010.

“Indebtedness” means, as applied to any Person, without duplication, (i) all indebtedness for
borrowed money; (ii) that portion of obligations with respect to Capital Leases that is properly
classified as a liability on a balance sheet in conformity with GAAP; (iii) notes payable and
drafts accepted representing extensions of credit whether or not representing obligations for
borrowed money; (iv) any obligation owed for all or any part of the deferred purchase price of
property or services, including any earn-out obligations (excluding any such obligations incurred
under ERISA), which purchase price is (a) due more than six months from
the date of incurrence of the obligation in respect thereof or (b) evidenced by a note or
similar written instrument; (v) all indebtedness secured by any Lien on any property or asset owned
or held by that Person regardless of whether the indebtedness secured thereby shall have been
assumed by that Person or is nonrecourse to the credit of that Person; (vi) the face amount of any
letter of credit issued for the account of that Person or as to which that Person is otherwise
liable for reimbursement of drawings; (vii) Disqualified Equity

 

9

 

Interests, (viii) the direct or
indirect guaranty,  endorsement (otherwise than for collection or deposit in the ordinary course of
business), co-making, discounting with recourse or sale with recourse by such Person of the
obligation of another; (ix) any obligation of such Person the primary purpose or intent of which is
to provide assurance to an obligee that the obligation of the obligor thereof will be paid or
discharged, or any agreement relating thereto will be complied with, or the holders thereof will be
protected (in whole or in part) against loss in respect thereof; (x) any liability of such Person
for an obligation of another through any agreement (contingent or otherwise) (a) to purchase,
repurchase or otherwise acquire such obligation or any security therefor, or to provide funds for
the payment or discharge of such obligation (whether in the form of loans, advances, stock
purchases, capital contributions or otherwise) or (b) to maintain the solvency or any balance sheet
item, level of income or financial condition of another if, in the case of any agreement described
under subclauses (a) or (b) of this clause (x), the primary purpose or intent thereof is as
described in clause (ix) above; and (xi) all obligations of such Person in respect of any exchange
traded or over the counter derivative transaction, including under any Interest Rate Agreement or
Currency Agreement, in each case, whether entered into for hedging or speculative purposes or
otherwise.

“Indemnified Liabilities” means, collectively, any and all liabilities, obligations, losses,
damages (including natural resource damages), penalties, claims (including Environmental Claims),
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 Activity), 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 Goldman Sachs’ agreement to
enter into the BNY Reimbursement Agreement and procure the Letters 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 (including any handling, use, refining,
treatment, removal, storage, decontamination, clean-up, transport or disposal of any Collateral) or
the enforcement of the Guaranty)); (ii) the Fee Letter delivered by Goldman Sachs to LOTT with
respect to the transactions contemplated by this Agreement; or (iii) any Environmental Claim or any
Hazardous Materials Activity relating to or arising from, directly or indirectly, any past or
present activity, operation, land ownership, or practice of DUHI or any of its Subsidiaries,
including any contamination of any Collateral or natural resources arising in connection with the
use, handling, storage, transport or disposal of any such Collateral, and irrespective of whether
any of such activities were or will be undertaken in accordance with applicable laws, regulations,
codes and ordinances.

 

10

 

“Indemnitee” as defined in Section 9.3.

“Interest Rate Agreement” means any interest rate swap agreement, interest rate cap agreement,
interest rate collar agreement, interest rate hedging agreement or other similar agreement or
arrangement, each of which is for the purpose of hedging the interest rate exposure associated with
DUHI’s and its Subsidiaries’ operations and not for speculative purposes.

“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended to the date hereof
and from time to time hereafter, and any successor statute.

“Issuing Bank” means Bank of New York Mellon, together with its permitted successors and
assigns in such capacity.

“Joint Venture” means a joint venture, partnership or other similar arrangement, whether in
corporate, partnership or other legal form; provided, in no event shall any corporate
Subsidiary of any Person be considered to be a Joint Venture to which such Person is a party.

“Letters of Credit” as defined in the recitals.

“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.

“Lion” as defined in the preamble.

“LOTT” as defined in the preamble.

“Margin Stock” as defined in Regulation U.

“Material Adverse Effect” means a material adverse effect on and/or material adverse
developments with respect to (i) the business, operations, properties, assets or condition
(financial or otherwise) of DUHI and its Subsidiaries taken as a whole; (ii) the ability of any
Obligor to fully and timely perform its Obligations; (iii) the legality, validity, binding effect
or enforceability against an Obligor of a Credit Document to which it is a party; or (iv) the
rights, remedies and benefits available to, or conferred upon, Goldman Sachs under any Credit
Document.

“Material Contract” means each of (i) the Purchase Agreement, (ii) the Aron Agreement and
(iii) any Required Storage and Transportation Arrangement (under and as
defined in the Aron Agreement as in effect on the Closing Date), in each case, as amended,
amended and restated, supplemented or otherwise modified from time to time in accordance with the
terms hereof.

“Multiemployer Plan” means any Employee Benefit Plan which is a “multiemployer plan” as
defined in Section 3(37) of ERISA.

 

11

 

“Net Mark-to-Market Exposure” of a Person means, as of any date of determination, the excess
(if any) of all unrealized losses over all unrealized profits of such Person arising Indebtedness
of the type described in clause (xi) of the definition thereof. As used in this definition,
“unrealized losses” means the fair market value of the cost to such Person of replacing such
Indebtedness as of the date of determination (assuming such Indebtedness were to be terminated as
of that date), and “unrealized profits” means the fair market value of the gain to such Person of
replacing such Indebtedness as of the date of determination (assuming such Indebtedness were to be
terminated as of that date).

“New Letter of Credit” as defined in Section 2.6(b).

“Obligations” means all obligations of every nature of each Obligor from time to time owed to
GS Related Parties under any Credit Document, whether for principal, interest (including interest
which, but for the filing of a petition in bankruptcy with respect to such Obligor, would have
accrued on any Obligation, whether or not a claim is allowed against such Obligor for such interest
in the related bankruptcy proceeding), fees, expenses, indemnification or otherwise.

“Obligee Guarantor” as defined in Section 7.6.

“Obligors” means LOTT and the Guarantors.

“Organizational Documents” means (i) with respect to any corporation or company, its
certificate, memorandum or articles of incorporation, organization or association, as amended, and
its by-laws, as amended, (ii) with respect to any limited partnership, its certificate or
declaration of limited partnership, as amended, and its partnership agreement, as amended, (iii)
with respect to any general partnership, its partnership agreement, as amended, and (iv) with
respect to any limited liability company, its articles of organization, as amended, and its
operating agreement, as amended. In the event any term or condition of this Agreement or any other
Credit Document requires any Organizational Document to be certified by a secretary of state or
similar governmental official, the reference to any such “Organizational Document” shall only be to
a document of a type customarily certified by such governmental official.

“Other Taxes” means any and all present or future stamp or documentary Taxes or any other
excise or property Taxes, charges or similar levies (and interest, fines, penalties and additions
related thereto) arising from any payment made hereunder or from the execution, delivery or
enforcement of, or otherwise with respect to, this Agreement or any other Credit Document.

“Parent” means Delek Group Ltd., a company organized under the laws of Israel.

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

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

“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.

 

12

 

“Permitted Investor” means Delek Group Ltd., a company organized under the laws of Israel.

“Permitted Liens” means:

(a) Liens for taxes, assessments, judgments, governmental charges or levies, or claims not yet
delinquent or the non-payment of which is being diligently contested in good faith by customary or
appropriate proceedings and for which adequate reserves have been set aside on such Person’s books;
and

(b) Liens imposed by law, such as carriers’, warehousemen’s, mechanics’, materialmen’s and
other similar Liens arising in the ordinary course of business and securing rental, storage,
throughput, handling or other fees or charges owing from time to time (other than Indebtedness for
borrowed money) that are not overdue or are being contested in good faith and by appropriate
proceedings promptly initiated and diligently conducted, and a reserve or other appropriate
provision, if any, as shall be required by GAAP shall have been made therefor.

“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.

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

“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. Goldman Sachs may make commercial loans or other loans at
rates of interest at, above or below the Prime Rate.

“Principal Office” means Goldman Sachs’ “Principal Office” as set forth on Appendix A, or such
other office or office of a third party or sub-agent, as appropriate, as such Goldman Sachs may
from time to time designate in writing to LOTT.

“Projections” as defined in Section 4.8.

“Purchase Agreement” means that certain Crude Oil Sales Agreement, dated as of May 1, 2010,
between Saudi Aramco and LOTT, as amended, amended and restated, supplemented or otherwise
modified.

“Regulation U” means Regulation U of the Board of Governors, as in effect from time to time
and all official rulings and interpretations thereunder or thereof.

 

13

 

“Related Agreements” means, collectively, each of the Acquisition Documents, the Financing
Agreement and each of the Material Contracts.

“Release” means any release, spill, emission, leaking, pumping, pouring, injection, escaping,
deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous Material
into the indoor or outdoor environment (including the abandonment or disposal of any barrels,
containers or other closed receptacles containing any Hazardous Material), including the movement
of any Hazardous Material through the air, soil, surface water or groundwater.

“Saudi Aramco” means Saudi Arabian Oil Company.

“Saudi Letter of Credit” as defined in Section 2.6(a).

“Securities” means any stock, shares, partnership interests, voting trust certificates,
certificates of interest or participation in any profit-sharing agreement or arrangement, options,
warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured,
convertible, subordinated or otherwise, or in general any instruments commonly known as
“securities” or any certificates of interest, shares or participations in temporary or interim
certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire,
any of the foregoing.

“Solvency Certificate” means a Solvency Certificate of the chief financial officer of DUHI
substantially in the form of Exhibit B-2.

“Solvent” means, with respect to any Obligor, that as of the date of determination, both (i)
(a) the sum of such Obligor’s debt (including contingent liabilities) does not exceed the present
fair saleable value of such Obligor’s present assets; (b) such Obligor’s capital is not
unreasonably small in relation to its business as contemplated on the Closing Date and reflected in
the Projections or with respect to any transaction contemplated to be undertaken after the Closing
Date; and (c) such Person has not incurred and does not intend to incur, or believe (nor should it
reasonably believe) that it will incur, debts beyond its ability to pay such debts as they become
due (whether at maturity or otherwise); and (ii) such Person is “solvent” within the meaning given
that term and similar terms under the Bankruptcy Code and other applicable laws relating to
fraudulent transfers and conveyances. For purposes of this definition, the amount of any
contingent liability at any time shall be computed as the amount that, in light of all of the facts
and circumstances existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability (irrespective of whether such contingent liabilities meet the
criteria for accrual under Statement of Financial Accounting Standard
No. 5).

 

14

 

“Subsidiary” means, with respect to any Person, any corporation, partnership, limited
liability company, association, joint venture or other business entity of which more than 50% of
the total voting power of shares of stock or other ownership interests entitled (without regard to
the occurrence of any contingency) to vote in the election of the Person or Persons (whether
directors, managers, trustees or other Persons performing similar functions) having the power to
direct or cause the direction of the management and policies thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that
Person or a combination thereof; provided, in determining the percentage of ownership
interests of any Person controlled by another Person, no ownership interest in the nature of a
“qualifying share” of the former Person shall be deemed to be outstanding. For the avoidance of
doubt, because the Acquisition is being consummated simultaneously with the execution and delivery
of this Agreement, Lion, LOTT and their respective Subsidiaries shall be deemed to be Subsidiaries
of DUHI for all purposes under this Agreement.

“Tax” means any present or future tax, levy, impost, duty, assessment, charge, fee, deduction
or withholding (together with interest, penalties and other additions thereto) of any nature and
whatever called, by whomsoever, on whomsoever and wherever imposed, levied, collected, withheld or
assessed; provided, “Tax on 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 Goldman Sachs, its lending office) is
located on all or part of the overall 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 Goldman Sachs, its applicable
lending office).

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

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 DUHI to Lenders pursuant to Section 5.1(a) and 5.1(b)
shall be prepared in accordance with GAAP as in effect at the time of such preparation (and
delivered together with the reconciliation statements provided for in Section 5.1(c), if
applicable). Subject to the foregoing, calculations in connection with the definitions, covenants
and other provisions hereof shall utilize accounting principles and policies in conformity with
those used to prepare the Historical Financial Statements.

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.

 

15

 

SECTION 2. REIMBURSEMENT OBLIGATIONS; SUBSTITUTION AND EXTENSIONS; CASH COLLATERAL

2.1. Letters of Credit and Reimbursement Obligations.

(a) In the event Goldman Sachs or any of its Affiliates (collectively, the “GS Related
Parties”) has made any payment under the BNY Reimbursement Agreement, Goldman Sachs shall promptly
notify LOTT, and LOTT shall reimburse such GS Related Party on or before the Business Day
immediately following the date on which such payment is made in an amount equal to the amount of
such payment; provided that (i) LOTT shall not be obligated to reimburse the GS Related
Parties for the amount of any fronting fees paid to the Issuing Bank under the BNY Reimbursement
Agreement at a rate in excess of the lesser of 25 basis points per annum or 50% of the rate payable
by the GS Related Parties and (ii) in the event that the BNY Reimbursement Agreement is amended,
supplemented or modified after the date hereof, LOTT shall not be obligated to reimburse any GS
Related Party for any additional costs or expenses incurred by a GS Related Party as the result of
any such amendment, supplement or modification not consented to by LOTT.

(b) Without duplication of any obligation of LOTT under Sections 2.1(a) or 9.2, LOTT hereby
agrees to protect, indemnify, pay and save harmless the GS Related Parties from and against any and
all claims, demands, liabilities, damages, losses, costs, charges and expenses (including
reasonable fees, expenses and disbursements of counsel and allocated costs of internal counsel)
which such GS Related Parties may incur or be subject to as a consequence, direct or indirect, of
the entering into of the BNY Reimbursement Agreement by any GS Related Party, other than as a
result of the gross negligence or willful misconduct of such GS Related Party as determined by a
final, non-appealable judgment of a court of competent jurisdiction.

(c) Obligations Absolute. The obligations of LOTT under this Section 2.1 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 any Existing LOC or Letter of Credit; (ii) the existence of any claim, set-off,
defense or other right which Ergon, any Obligor, any GS Related Party or the Issuing Bank may have
at any time against a beneficiary or any transferee of the Letters of Credit (or any Persons for
whom any such transferee may be acting), Ergon, any Obligor, any GS Related Party or the Issuing
Bank, whether in connection herewith, the transactions contemplated herein or any unrelated
transaction (including any underlying transaction between any Obligor or one of its Subsidiaries
and the beneficiary for which any Existing LOC or Letter of Credit was procured); (iii) any draft
or other document presented under any Existing LOC or 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) any adverse change in the business, operations,
properties, assets, condition (financial or otherwise) or prospects of DUHI or any of its
Subsidiaries; (v) any breach hereof or of any other Credit Document by any party thereto; (vi) the
fact that an Event of Default or a Default shall have occurred and be continuing; or (vi) any other
circumstance or happening whatsoever, whether or not similar to any of the foregoing;
provided, in each case, that payment by any GS Related Party under the BNY Reimbursement
Agreement shall not have constituted gross negligence or willful misconduct of such GS Related
Party under the circumstances in question as determined by a final, non-appealable judgment of a
court of competent jurisdiction.

 

16

 

2.2. Interest on Obligations. Except as otherwise set forth herein, any amount due and owing hereunder and not paid when
due shall bear interest payable on demand at the Base Rate plus the Applicable Margin, which
interest shall accrue, (x) in the case of amounts owing under Section 2.1(a) hereof, from the date
of the payment by Goldman Sachs under the BNY Reimbursement Agreement in respect of which such
overdue amount is owed and (y) in the case of all other amounts, from the date such payment is due
hereunder.

2.3. Fees.

(a) LOTT agrees to pay to Goldman Sachs:

(i) an arrangement fee equal to $1,250,000, which fee shall be due and payable on the
Closing Date;

(ii) commitment fees equal to 4.25%, per annum, times the average aggregate daily
maximum amount available to be drawn under the Letters of Credit (determined as of the close
of business on any date of determination), which fee shall accrue from the Closing Date; and

(iii) solely in the event that LOTT elects, in its sole discretion to extend the
Letters of Credit beyond the initial expiration date of July 31, 2011, a one-time duration
fee equal to 0.50% of the aggregate face amount of the Letters of Credit extended beyond
July 31, 2011, which fee shall be due payable on the date of such extension.

(b) All fees referred to in Section 2.3(a)(ii) shall be calculated on the basis of a 360-day
year and the actual number of days elapsed and shall be payable monthly in arrears on the last
Business Day of each month, commencing on the first such date to occur after the Closing Date.

(c) In addition to any of the foregoing fees, LOTT agrees to pay to Goldman Sachs such other
fees in the amounts and at the times separately agreed upon in writing.

2.4. General Provisions Regarding Payments.

(a) All payments by LOTT of the 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 Goldman Sachs not later than 2:00 p.m. (New York City time) on the date due at the
Principal Office of Goldman Sachs; for purposes of computing interest and fees, funds received by
Goldman Sachs after that time on such due date shall be deemed to have been paid by LOTT on the
next succeeding Business Day.

(b) Whenever any payment to be made hereunder with respect to any amount shall be stated to be
due on a day that is not a Business Day, such payment shall be made on the next succeeding Business
Day.

 

17

 

(c) Goldman Sachs shall deem any payment by or on behalf of LOTT hereunder that is not made in
same day funds prior to 2:00 p.m. (New York City time) to be a non-conforming payment. Any such
payment shall not be deemed to have been received by Goldman Sachs until the later of (i) the time
such funds become available funds, and (ii) the applicable next Business Day. Goldman Sachs shall
give prompt telephonic notice to LOTT 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
8.1(a). 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) If an Event of Default shall have occurred and not otherwise been waived, all payments or
proceeds received Goldman Sachs in respect of any of the Obligations, shall be applied to the
Obligations in such order as it shall determine in its sole discretion.

2.5. Taxes; Withholding, Etc.

(a) Payments to Be Free and Clear. All sums payable by or on behalf of any Obligor
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 Goldman Sachs) imposed, levied, collected, withheld or assessed by
any Governmental Authority.

(b) Withholding of Taxes. If any Obligor or any other Person (acting as a withholding
agent) is (in such withholding agent’s reasonable good faith discretion) required by law to make
any deduction or withholding on account of any such Tax from any sum paid or payable by any Obligor
to Goldman Sachs under any of the Credit Documents: (i) LOTT shall notify Goldman Sachs of any such
requirement or any change in any such requirement as soon as LOTT becomes aware of it; (ii) LOTT
shall pay, or cause to be paid, any such Tax before the date on which penalties attach thereto,
such payment to be made (if the liability to pay is
imposed on any Obligor) for its own account or (if that liability is imposed on Goldman Sachs)
on behalf of and in the name of Goldman Sachs; (iii) unless otherwise provided on this Section 2.5,
the sum payable by such Obligor 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, Goldman Sachs 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 the due date of payment of any Tax which it is required by clause
(ii) above to pay, LOTT shall deliver to Goldman Sachs 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, with respect to any United States federal withholding
tax, no such additional amount shall be required to be paid to Goldman Sachs under clause (iii)
above except to the extent that any change after the date hereof (in the case of Goldman Sachs
listed on the signature pages hereof on the Closing Date) 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 payments to
Goldman Sachs.

 

18

 

(c) Notwithstanding anything to the contrary, LOTT shall not be required to pay any additional
amount pursuant to Section 2.5(b) with respect to any United States federal withholding tax imposed
on any “withholdable payments” payable to a recipient as a result of the failure of such recipient
to satisfy the applicable requirements as set forth in FATCA after December 31, 2012.

(d) LOTT shall indemnify Goldman Sachs for the full amount of Taxes for which additional
amounts are required to be paid pursuant to Section 2.5(b) arising in connection with payments made
under this Agreement or any other Credit Document and Other Taxes (including any such Taxes or
Other Taxes imposed or asserted on or attributable to amounts payable under this Section 2.5) paid
by Goldman Sachs or any of its Affiliates and any reasonable expenses arising therefrom or with
respect thereto, whether or not such Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or
liability delivered to such Obligor shall be conclusive absent manifest error. Such payment shall
be due within thirty (30) days of such Obligor’s receipt of such certificate.

(e) If any party determines, in its sole discretion exercised in good faith, that it has
received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.5
(including additional amounts pursuant to this Section 2.5), it shall pay to the indemnifying party
an amount equal to such refund (but only to the extent of indemnity payments made under this
Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses
(including Taxes) of such indemnified party and without interest (other than any interest paid by
the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon
the request of such indemnified party, shall repay to such indemnified party the amount paid over
pursuant to this paragraph (e) (plus any penalties, interest or other charges imposed by the
relevant Governmental Authority) in the event that such indemnified party is required to repay such
refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph
(e), in no event will the indemnified party be required to pay any amount to an indemnifying party
pursuant to this paragraph (e) the payment of which
would place the indemnified party in a less favorable net after-Tax position than the
indemnified party would have been in if the indemnification payments or additional amounts giving
rise to such refund had never been paid. This paragraph shall not be construed to require any
indemnified party to make available its Tax returns (or any other information relating to its Taxes
that it deems confidential) to the indemnifying party or any other Person.

2.6. Substitutions and Extensions.

(a) At the request of LOTT, Goldman Sachs shall procure the extension of the expiration date
of the Letter of Credit substantially in the form of Annex I (the “Saudi Letter of Credit”) to a
date not later than June 27, 2011.

 

19

 

(b) At the request of LOTT, Goldman Sachs shall use commercially reasonable efforts to procure
the issuance by the Issuing Bank to Saudi Aramco, in exchange for the Saudi Letter of Credit, a
letter of credit (the “New Letter of Credit”) in an amount equal to the then-undrawn amount of the
Saudi Letter of Credit and otherwise having the same commercial terms and conditions substantially
similar to those of the outstanding letter of credit issued to Saudi Aramco backstopped by the
Saudi Letter of Credit (the “Backstopped Saudi LOC”), except that the New Letter of Credit shall
have an initial expiration date requested by LOTT not later than September 30, 2011. From time to
time at the request of LOTT, Goldman Sachs shall use commercially reasonable efforts to cause the
amount and/or expiration date of the New Letter of Credit to be amended, provided that (i) LOTT
shall not be entitled to request amendments to the New Letter of Credit more than twice in any
calendar month, (ii) in no event shall the amount of the New Letter of Credit exceed $75,018,958.34
and in no event shall the expiration date of the New Letter of Credit fall after September 30,
2011. Upon the issuance of the New Letter of Credit, it shall be deemed to be a “Letter of Credit”
for all purposes of the Credit Documents.

(c) The obligations of Goldman Sachs under Section 2.6(a) to procure an extension of the
expiration date of the Saudi Letter of Credit and under Section 2.6(b) to procure the issuance of
the New Letter of Credit and to allow or procure an extension any extension of the expiration date
of the New Letter of Credit is subject to the conditions precedent that, on the date of such
extension or issuance, as the case may be, (i) there shall not have occurred and be continuing any
Default or Event of Default and (ii) all representations and warranties made by the Obligors in
this Agreement and the Pledge and Security Agreement shall be true and correct on and as of such
date as if made on and as of such date unless relating to a specific date when first made (and the
Obligors shall be deemed on such date to represent and warrant that such conditions precedent are
satisfied). The obligation of Goldman Sachs under Section 2.6(b) to procure the issuance of the
New Letter of Credit is subject to the further additional condition precedent that LOTT shall have
provided evidence reasonably satisfactory to Goldman Sachs that the Saudi Letter of Credit and the
Backstopped Saudi LOC have been cancelled.

(d) LOTT shall use commercially reasonable efforts to enable the exchange of the New Letter of
Credit for the Saudi Letter of Credit to occur.

2.7. Cash Collateral. DUHI shall cause $35,000,000 to be deposited into the Collateral Account on the date hereof.
If the Saudi Letter of Credit remains outstanding after May 19, 2011 for any reason other than a
breach by Goldman Sachs of its obligations to use commercially reasonable efforts to procure the
issuance of the New Letter of Credit in exchange therefor, DUHI shall on May 20, 2011 remit
$20,000,000 to Goldman Sachs for deposit into the Collateral Account to be held as additional
Collateral thereunder, provided that if at any time thereafter such exchange occurs, the Collateral
Agent shall cause $20,000,000 to be released to DUHI from the Collateral Account so long as no
Default or Event of Default shall have occurred and be continuing. In addition, at the request of
DUHI, Goldman Sachs shall cause $10,000,000 to be released to DUHI from the Collateral Account if
at the time of the request, no Letter of Credit is outstanding other than the New Letter of Credit
and no Default or Event of Default shall have occurred and be continuing.

 

20

 

SECTION 3. CONDITIONS PRECEDENT

3.1. Closing Date. The Obligors acknowledge that the procuring by Goldman Sachs of the issuance of the Letters
of Credit was subject to the satisfaction of the following conditions on or before the Closing
Date:

(a) Credit Documents. The receipt by Goldman Sachs of sufficient copies of each
Credit Document as Goldman Sachs shall have requested, originally executed and delivered by each
applicable Obligor.

(b) Organizational Documents; Incumbency. The receipt by Goldman Sachs of, in respect
of each Obligor, (i) sufficient copies of each Organizational Document as Goldman Sachs shall have
requested, and, to the extent applicable, certified as of the Closing Date or a recent date prior
thereto by the appropriate Governmental Authority; (ii) signature and incumbency certificates of
the officers of such Obligor; (iii) resolutions of the Board of Directors or similar governing body
of such Obligor approving and authorizing the execution, delivery and performance of this Agreement
and the other Credit Documents and the Related Agreements to which it is a party or by which it or
its assets may be bound as of the Closing Date, certified as of the Closing Date by its secretary
or an assistant secretary as being in full force and effect without modification or amendment; (iv)
a good standing certificate from the applicable Governmental Authority of such Obligor’s
jurisdiction of incorporation, organization or formation and in each jurisdiction in which it is
qualified as a foreign corporation or other entity to do business, each dated the Closing Date or a
recent date prior thereto; (v) signature and incumbency certificates of one or more officers of
LOTT who are authorized to execute notices delivered under this Agreement, in substantially the
form of Exhibit D hereto (with such amendments or modifications as may have been approved by
Goldman Sachs) and (vi) such other documents as Goldman Sachs may have reasonably requested.

(c) Organizational and Capital Structure. The organizational structure and capital
structure of DUHI and its Subsidiaries, both before and after giving effect to the Acquisition,
shall have been as set forth on Schedule 4.2.

(d) Consummation of the Acquisition.

(i) (1) The satisfaction or waiver (with the consent of Goldman Sachs) of all
conditions to the Acquisition set forth in the Acquisition Agreement and (2) the
effectiveness of the Acquisition in accordance with the terms of the Acquisition Documents.

(ii) The receipt by Goldman Sachs of a fully executed or conformed copy of each Related
Agreement and any documents executed in connection therewith. Full force and effectiveness
of each Related Agreement, including terms and provisions reasonably satisfactory to Goldman
Sachs, without modification or waiver of any provision thereof in any respect determined by
Goldman Sachs to be material, in each case without the consent of Goldman Sachs.

(e) Governmental Authorizations and Consents. Each Obligor having 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 the Related
Agreements, and the full force and effectiveness of each of the foregoing in form and substance
reasonably satisfactory to Goldman Sachs. Expiration of all applicable waiting periods without any
action being taken or threatened by any competent authority which would restrain, prevent or
otherwise impose adverse conditions on the transactions contemplated by the Credit Documents or the
Related Agreements or the financing thereof and the absence of any pending action, request for
stay, petition for review or rehearing, reconsideration, or appeal with respect to any of the
foregoing, and expiration of the time for any applicable agency to take action to set aside its
consent on its own motion.

 

21

 

(f) Personal Property Collateral. In order to create in favor of Goldman Sachs, a
valid, perfected First Priority security interest in the personal property Collateral, receipt by
Goldman Sachs from each of LOTT and Lion of:

(i) evidence satisfactory to Goldman Sachs of the compliance by each of LOTT and Lion
of their obligations under the Pledge and Security Agreement and the other Collateral
Documents (including their obligations to execute or authorize, as applicable, and deliver
UCC financing statements, originals of securities, instruments and chattel paper and any
agreements governing deposit and/or securities accounts as provided therein);

(ii) opinions of counsel (which counsel shall have been reasonably satisfactory to
Goldman Sachs) with respect to the creation and perfection of the security interests in
favor of Goldman Sachs in such Collateral and such other matters governed by the laws of
each jurisdiction in which any Obligor or any personal property Collateral is located as
Goldman Sachs may have reasonably requested, in each case in form and substance reasonably
satisfactory to Goldman Sachs; and

(iii) evidence that each of LOTT and Lion have taken or caused to be taken any other
action, executed and delivered or caused to be executed and delivered any other agreement,
document and instrument reasonably required by Goldman Sachs.

(g)  Financial Statements; Projections. Receipt by Goldman Sachs from DUHI of (i) the
Historical Financial Statements and (ii) the Projections.

(h) Evidence of Insurance. Receipt by Goldman Sachs of a certificate from the
applicable Obligor’s insurance broker or other evidence satisfactory to it that all insurance
required to be maintained pursuant to Section 5.5 is in full force and effect, together with
endorsements naming Goldman Sachs, as additional insured and loss payee thereunder to the extent
required under Section 5.5.

(i) Opinions of Counsel to Obligors. Receipt by Goldman Sachs and its counsel of
originally executed copies of the favorable written opinions of Bass Berry Sims PLC, counsel for
Obligors, in the form of Exhibit A and as to such other matters as Goldman Sachs may have
reasonably requested, dated as of the Closing Date and otherwise in form and substance reasonably
satisfactory to Goldman Sachs.

(j) Fees. Payment by LOTT to Goldman Sachs of the fees payable on or before the
Closing Date referred to in Section 2.3(a)(i) and all expenses payable pursuant to Section 9.2
which have accrued to the Closing Date.

(k) Solvency Certificate. On the Closing Date, receipt by Goldman Sachs of a Solvency
Certificate from DUHI and Lion, respectively, scope and substance satisfactory to Goldman Sachs,
certifying that after giving effect to the consummation of the Acquisition and any rights of
contribution, (i) DUHI and its Subsidiaries, taken as a whole, and (ii) Lion and its Subsidiaries,
taken as a whole, is and will be Solvent.

 

22

 

(l) Closing Date Certificate. Delivery by DUHI and LOTT to Goldman Sachs of an
originally executed Closing Date Certificate, together with all attachments thereto.

(m) No Litigation. The absence of 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 Goldman
Sachs, singly or in the aggregate, materially impairs the Acquisition, the financing thereof or any
of the other transactions contemplated by the Credit Documents or the Related Agreements, or that
could have a Material Adverse Effect.

(n) Completion of Proceedings. Consummation of all partnership, corporate and other
proceedings taken or to be taken in connection with the transactions contemplated hereby and
delivery of all documents incidental thereto not previously found acceptable by Goldman Sachs and
its counsel in form and substance satisfactory to Goldman Sachs and such counsel, and receipt by
Goldman Sachs and such counsel of all such counterpart originals or certified copies of such
documents as Goldman Sachs may have reasonably requested.

(o) Receipt by Goldman Sachs of 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”).

(p) The representations and warranties contained herein and in the other Credit Documents
being true and correct in all material respects on and as of the Closing Date to the same extent as
though made on and as of the Closing Date, except to the extent such representations and warranties
specifically relate to an earlier date, in which case such representations and warranties being
true and correct in all material respects on and as of such earlier date; 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.

(q) No event shall have occurred and be continuing or would result from the execution and
delivery by each Obligor of this Agreement that would constitute an Event of Default or a Default.

 

23

 

SECTION 4. REPRESENTATIONS AND WARRANTIES

In order to induce Goldman Sachs to enter into this Agreement, to enter into the BNY
Reimbursement Agreement and to procure the issuance of the Letters of Credit, each Obligor
represents and warrants to Goldman Sachs on the Closing Date that the following statements are true
and correct:

4.1. Organization; Requisite Power and Authority; Qualification. Each Obligor (a) is duly organized, validly existing and in good standing under the laws of
its jurisdiction of organization as identified in Schedule 4.1, (b) has all requisite power and
authority to own and operate its properties, to carry on its business as now conducted and as
proposed to be conducted, to enter into the Credit Documents to which it is a party and to carry
out the transactions contemplated thereby, and (c) is qualified to do business and in good standing
in every jurisdiction where its assets are located and wherever necessary to carry out its business
and operations, except in jurisdictions where the failure to be so qualified or in good standing
has not had, and could not be reasonably expected to have, a Material Adverse Effect.

4.2. Equity Interests and Ownership. Schedule 4.2 correctly sets forth the ownership interest of DUHI and each of its
Subsidiaries in their respective Subsidiaries as of the Closing Date both before and after giving
effect to the Acquisition.

4.3. Due Authorization. The execution, delivery and performance of the Credit Documents have been duly authorized
by all necessary action on the part of each Obligor that is a party thereto.

4.4. No Conflict. The execution, delivery and performance by Obligors of the Credit Documents to which they
are parties and the consummation of the transactions contemplated by the Credit Documents do not
and will not (a) violate (i) any provision of any law or any governmental rule
or regulation applicable to any Obligor, (ii) any of the Organizational Documents of any
Obligor, or (iii) any order, judgment or decree of any court or other agency of government binding
on any Obligor; (b) conflict with, result in a breach of or constitute (with due notice or lapse of
time or both) a default under any material Contractual Obligation of DUHI, Lion or any of Lion’s
Subsidiaries; (c) result in or require the creation or imposition of any Lien upon any of the
properties or assets of any Obligor (other than the Liens created under any of the Credit Documents
in favor of Goldman Sachs and the Aron Lien); or (d) require any approval of stockholders, members
or partners or any approval or consent of any Person under any Contractual Obligation of any
Obligor, except for such approvals or consents as have been obtained on or before, and are in full
force and effect on, the Closing Date and disclosed in writing to Goldman Sachs.

4.5. Governmental Consents. The execution, delivery and performance by Obligors of the Credit Documents to which they
are parties and the consummation of the transactions contemplated by the Credit Documents do not
and will not require any registration with, consent or approval of, or notice to, or other action
to, with or by, any Governmental Authority except as otherwise set forth in the Acquisition
Agreement, and except for filings and recordings with respect to the Collateral to be made, or
otherwise delivered to Goldman Sachs for filing and/or recordation, as of the Closing Date.

4.6. Binding Obligation. Each Credit Document has been duly executed and delivered by each Obligor that is a party
thereto and is the legally valid and binding obligation of such Obligor, enforceable against such
Obligor in accordance with its respective terms, except as may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights
generally or by equitable principles relating to enforceability.

 

24

 

4.7. Historical Financial Statements. The Historical Financial Statements were prepared in conformity with GAAP and fairly
present, in all material respects, the financial position, on a consolidated basis, of the Persons
described in such financial statements as at the respective dates thereof and the results of
operations and cash flows, on a consolidated basis, of the entities described therein for each of
the periods then ended, subject, in the case of any such unaudited financial statements, to changes
resulting from audit and normal year-end adjustments. As of the Closing Date, neither DUHI nor any
of its Subsidiaries has any contingent liability or liability for Taxes, long-term lease or unusual
forward or long-term commitment that is not reflected in the Historical Financial Statements or the
notes thereto and which in any such case is material in relation to the business, operations,
properties, assets, condition (financial or otherwise) or prospects of DUHI and any of its
Subsidiaries taken as a whole.

4.8. Projections. On and as of the Closing Date, the projections of DUHI and its Subsidiaries for the period
of Fiscal Year 2011 through and including Fiscal Year 2015 (the “Projections”) are
based on good faith estimates and assumptions made by the management of DUHI;
provided, the Projections are not to be viewed as facts and that actual results during the
period or periods covered by the Projections may differ from such Projections and that the
differences may be material; provided further, as of the Closing Date, management
of DUHI believed that the Projections were reasonable and attainable.

4.9. No Material Adverse Effect. Since December 31, 2010, no event, circumstance or change has occurred that has caused or
evidences, or could reasonably be expected to result in, either in any case or in the aggregate, a
Material Adverse Effect.

4.10. Adverse Proceedings, Etc. There are no Adverse Proceedings, individually or in the aggregate, that could reasonably be
expected to have a Material Adverse Effect. Neither DUHI nor any of its Subsidiaries (a) is in
violation of any applicable laws (including Environmental Laws) that, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect, or (b) is subject to or
in default with respect to any final judgments, writs, injunctions, decrees, rules or regulations
of any court or any federal, state, municipal or other governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, that, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.

4.11. Payment of Taxes. Except as otherwise permitted under Section 5.3, all Tax returns and reports of DUHI and its
Subsidiaries required to be filed by any of them have been timely filed, and all Taxes shown on
such tax returns to be due and payable and all assessments, fees and other governmental charges
upon DUHI and its Subsidiaries and upon their respective properties, assets, income, businesses and
franchises which are due and payable have been paid when due and payable except where failure to so
file or pay could not reasonably be expected to have a Material Adverse Effect. To the knowledge
of DUHI, no tax Lien has been filed (except as permitted under Section 6.1) and no claim is
being asserted, with respect to any such tax, fee or other charge which is not being actively
contested by DUHI or such Subsidiary in good faith and by appropriate proceedings;
provided, such reserves or other appropriate provisions, if any, as shall be required in
conformity with GAAP shall have been made or provided therefor.

 

25

 

4.12. Environmental Matters. Neither DUHI nor any of its Subsidiaries nor any of their respective Facilities or
operations are subject to any outstanding written order, consent decree or settlement agreement
with any Person relating to any Environmental Law, any Environmental Claim, or any Hazardous
Materials Activity that, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect. Neither DUHI nor any of its Subsidiaries has received any letter or
request for information under Section 94 of the Comprehensive Environmental Response, Compensation,
and Liability Act (42 U.S.C. § 9604) or any comparable state law where any such notice or request
for information, individually or in the aggregate, could reasonably be expected to have a Material
Adverse Effect. There are and, to each of DUHI’s and
its Subsidiaries’ knowledge, have been, no conditions, occurrences, or Hazardous Materials
Activities which could reasonably be expected to form the basis of an Environmental Claim against
DUHI or any of its Subsidiaries that, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect. Neither DUHI nor any of its Subsidiaries nor, to any
Obligor’s knowledge, any predecessor of DUHI or any of its Subsidiaries has filed any notice under
any Environmental Law indicating past or present treatment of Hazardous Materials at any Facility
where any such treatment, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect. Compliance with all current or reasonably foreseeable future requirements
pursuant to or under Environmental Laws could not be reasonably expected to have, individually or
in the aggregate, a Material Adverse Effect. No event or condition has occurred or is occurring
with respect to DUHI or any of its Subsidiaries relating to any Environmental Law, any Release of
Hazardous Materials, or any Hazardous Materials Activity which individually or in the aggregate has
had, or could reasonably be expected to have, a Material Adverse Effect.

4.13. No Defaults. Neither DUHI nor any of its Subsidiaries is in default in the performance, observance or
fulfillment of any of the obligations, covenants or conditions contained in any of its Contractual
Obligations, and no condition exists which, with the giving of notice or the lapse of time or both,
could constitute such a default, except where the consequences, direct or indirect, of such default
or defaults, if any, could not reasonably be expected to have a Material Adverse Effect.

4.14. Governmental Regulation. Neither DUHI nor any of its Subsidiaries is subject to regulation under the Federal Power
Act or the Investment Company Act of 1940 or under any other federal or state statute or regulation
which may limit its ability to incur Indebtedness or which may otherwise render all or any portion
of the Obligations unenforceable. Neither DUHI nor any of its Subsidiaries is a “registered
investment company” or a company “controlled” by a “registered investment company” or a “principal
underwriter” of a “registered investment company” as such terms are defined in the Investment
Company Act of 1940.

4.15. Federal Reserve Regulations; Exchange Act. None of DUHI, LOTT or any of their 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.

 

26

 

4.16. Employee Matters. Neither DUHI nor any of its Subsidiaries is engaged in any unfair labor practice that could
reasonably be expected to have a Material Adverse Effect. There is (a) no unfair labor practice
complaint pending against DUHI or any of its Subsidiaries, or to the best knowledge of DUHI and
LOTT, threatened against any of them before the National Labor Relations Board and no grievance or
arbitration proceeding arising out of or under any collective bargaining
agreement that is so pending against DUHI or any of its Subsidiaries or to the best knowledge
of DUHI and LOTT, threatened against any of them, (b) no strike or work stoppage in existence or
threatened involving DUHI or any of its Subsidiaries, and (c) to the best knowledge of DUHI and
LOTT, no union representation question existing with respect to the employees of DUHI or any of its
Subsidiaries and, to the best knowledge of DUHI and LOTT, no union organization activity that is
taking place, except (with respect to any matter specified in clause (a), (b) or (c) above, either
individually or in the aggregate) such as is not reasonably likely to have a Material Adverse
Effect.

4.17. Employee Benefit Plans. DUHI, each of its Subsidiaries and each of their respective ERISA Affiliates are in material
compliance with all applicable provisions and requirements of ERISA and the Internal Revenue Code
and the regulations and published interpretations thereunder with respect to each Employee Benefit
Plan, and have performed all their obligations under each Employee Benefit Plan. Each Employee
Benefit Plan which is intended to qualify under Section 401(a) of the Internal Revenue Code has
received a favorable determination letter from the Internal Revenue Service indicating that such
Employee Benefit Plan is so qualified and nothing has occurred subsequent to the issuance of such
determination letter which would cause such Employee Benefit Plan to lose its qualified status. No
material liability to the PBGC (other than required premium payments), the Internal Revenue
Service, any Employee Benefit Plan or any trust established under Title IV of ERISA has been or is
expected to be incurred by DUHI, any of its Subsidiaries or any of their ERISA Affiliates. No
ERISA Event has occurred or is reasonably expected to occur. Except to the extent required under
Section 4980B of the Internal Revenue Code or similar state laws, no Employee Benefit Plan provides
health or welfare benefits (through the purchase of insurance or otherwise) for any retired or
former employee of DUHI, any of its Subsidiaries or any of their respective ERISA Affiliates. The
present value of the aggregate benefit liabilities under each Pension Plan sponsored, maintained or
contributed to by DUHI, any of its Subsidiaries or any of their ERISA Affiliates (determined as of
the end of the most recent plan year on the basis of the actuarial assumptions specified for
funding purposes in the most recent actuarial valuation for such Pension Plan), did not exceed the
aggregate current value of the assets of such Pension Plan. As of the most recent valuation date
for each Multiemployer Plan for which the actuarial report is available, the potential liability of
DUHI, its Subsidiaries and their respective ERISA Affiliates for a complete withdrawal from such
Multiemployer Plan (within the meaning of Section 4203 of ERISA), when aggregated with such
potential liability for a complete withdrawal from all Multiemployer Plans, based on information
available pursuant to Section 4221(e) of ERISA is zero. DUHI, each of its Subsidiaries and each of
their ERISA Affiliates have complied with the requirements of Section 515 of ERISA with respect to
each Multiemployer Plan and are not in material “default” (as defined in Section 4219(c)(5) of
ERISA) with respect to payments to a Multiemployer Plan.

4.18. Certain Fees. No broker’s or finder’s fee or commission will be payable with respect to the transactions
contemplated by the Related Agreements, except as payable to Goldman Sachs.

 

27

 

4.19. Solvency. Each Obligor is and, upon the incurrence of any Obligation by any Obligor on any date on
which this representation and warranty is made, will be, Solvent.

4.20. Related Agreements.

(a) Delivery. DUHI and LOTT have delivered to Goldman Sachs complete and correct
copies of (i) each Related Agreement and of all exhibits and schedules thereto as of the date
hereof and (ii) copies of any material amendment, restatement, supplement or other modification to
or waiver of each Related Agreement entered into after the date hereof.

(b) Conditions Precedent. On the Closing Date, (i) all of the conditions to effecting
or consummating the Acquisition set forth in the Acquisition Agreement have been duly satisfied or,
with the consent of Goldman Sachs, waived, and (ii) the Acquisition has been consummated in
accordance with the Acquisition Agreement and all applicable laws.

4.21. Compliance with Statutes, Etc. Each of DUHI and its Subsidiaries is in compliance with all applicable statutes, regulations
and orders of, and all applicable restrictions imposed by, all Governmental Authorities, in respect
of the conduct of its business and the ownership of its property (including compliance with all
applicable Environmental Laws governing its business and the requirements of any permits issued
under such Environmental Laws the operations of DUHI or any of its Subsidiaries), except such
non-compliance that, individually or in the aggregate, could not reasonably be expected to result
in a Material Adverse Effect.

4.22. Disclosure. No representation or warranty of any Obligor contained in any Credit Document or in any
other documents, certificates or written statements furnished to Goldman Sachs by or on behalf of
DUHI or any of its Subsidiaries for use in connection with the transactions contemplated hereby
contains any untrue statement of a material fact or omits to state a material fact (known to DUHI
or LOTT, in the case of any document not furnished by either of them) necessary in order to make
the statements contained herein or therein not misleading in light of the circumstances in which
the same were made. Any projections and pro forma financial information contained in such
materials are based upon good faith estimates and assumptions believed by DUHI or LOTT to be
reasonable at the time made, it being recognized by Goldman Sachs that such projections as to
future events are not to be viewed as facts and that actual results during the period or periods
covered by any such projections may differ from the projected results. There are no facts known
(or which should upon the reasonable exercise of diligence be known) to DUHI or LOTT (other than
matters of a general economic nature) that, individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect and that have not been disclosed herein or in such
other documents, certificates and statements furnished to Goldman Sachs for use in connection with
the transactions contemplated hereby.

4.23. PATRIOT Act. To the extent applicable, each Obligor 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 C.F.R., Subtitle B, Chapter V, as amended) and any other
enabling legislation or executive order relating thereto, and (ii) the PATRIOT Act.

 

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SECTION 5. AFFIRMATIVE COVENANTS

Each Obligor covenants and agrees that, so long as this Agreement is in effect and until
payment in full of all Obligations, each Obligor shall perform, and shall cause each of its
Subsidiaries to perform, all covenants in this Section 5.

5.1. Financial Statements and Other Reports. DUHI will deliver to Goldman Sachs:

(a) Monthly Reports. As soon as available, and in any event within 30 days after the
end of each month ending after the Closing Date (or, in the case clause (y) below for the month
ending Aril 30, 2011, 90 days after the end of such month), commencing with the month in which the
Closing Date occurs, (x) a consolidated operating income statement for DUHI and its Subsidiaries
(other than Lion and its Subsidiaries) reflecting earnings to a contribution margin level, but
excluding adjustments made in accordance with GAAP that are calculated solely on a quarterly basis,
for the period from the beginning of the then current Fiscal Year to the end of such month and (y)
a consolidated operating income statement for Lion and its Subsidiaries reflecting earnings to a
contribution margin level, but excluding adjustments made in accordance with GAAP that are
calculated solely on a quarterly basis, for the period from the beginning of the then current
Fiscal Year to the end of such month in each case, setting forth in comparative form the
corresponding figures for the corresponding periods of the previous Fiscal Year, commencing with
the first month for which such corresponding figures are available, and the corresponding figures
from the Financial Plan for the current Fiscal Year, to the extent prepared on a monthly basis, all
in reasonable detail, together with a Financial Officer Certification;

(b) Quarterly Financial Statements. As soon as available, and in any event within 50
days after the end of each Fiscal Quarter of each Fiscal Year, commencing with the Fiscal Quarter
in which the Closing Date occurs, (x) the consolidated balance sheets of DUHI and its Subsidiaries
(other than Lion and its Subsidiaries) as at the end of such Fiscal Quarter and the related
consolidated statements of income, stockholders’ equity and cash flows of DUHI and its Subsidiaries
(other than Lion and its Subsidiaries) for such Fiscal Quarter and for the period from the
beginning of the then current Fiscal Year to the end of such Fiscal Quarter and (y) the
consolidated balance sheets of Lion and its Subsidiaries as at the end of such Fiscal Quarter and
the related consolidated statements of income, stockholders’ equity and cash flows of Lion and its
Subsidiaries for such Fiscal Quarter and for the period from the beginning of the then current
Fiscal Year to the end of such Fiscal Quarter, in each case, setting forth in comparative form the
corresponding figures for the corresponding periods of the previous Fiscal Year, commencing with
the first Fiscal Quarter for which such corresponding figures are available, all in reasonable
detail, together with a Financial Officer Certification;

(c) Statements of Reconciliation after Change in Accounting Principles. If, as a
result of any change in accounting principles and policies from those used in the preparation of
the Historical Financial Statements, the consolidated financial statements of DUHI and its
Subsidiaries delivered pursuant to Section 5.1(b) will differ in any material respect from the
consolidated financial statements that would have been delivered pursuant to such subdivisions had
no such change in accounting principles and policies been made, then, together with the first
delivery of such financial statements after such change, one or more statements of reconciliation
for all such prior financial statements in form and substance satisfactory to Goldman Sachs;

 

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(d) Notice of Default. Promptly upon any officer of DUHI or LOTT obtaining knowledge
(i) of any condition or event that constitutes a Default or an Event of Default or that notice has
been given to DUHI or LOTT with respect thereto; (ii) that any Person has given any notice to DUHI
or any of its Subsidiaries or taken any other action with respect to any event or condition set
forth in Section 8.1(b); or (iii) of the occurrence of any event or change that has caused or
evidences, either in any case or in the aggregate, a Material Adverse Effect, a certificate of an
Authorized Officer specifying the nature and period of existence of such condition, event or
change, or specifying the notice given and action taken by any such Person and the nature of such
claimed Event of Default, Default, default, event or condition, and what action LOTT has taken, is
taking and proposes to take with respect thereto;

(e) Notice of Litigation. Promptly upon any officer of DUHI or LOTT obtaining
knowledge of (i) any Adverse Proceeding not previously disclosed in writing by LOTT to Goldman
Sachs, or (ii) any development in any Adverse Proceeding that, in the case of either clause (i) or
(ii), if adversely determined could be reasonably expected to have a Material Adverse Effect, or
seeks to enjoin or otherwise prevent the consummation of, or to recover any damages or obtain
relief as a result of, the transactions contemplated hereby, written notice thereof together with
such other information as may be reasonably available to DUHI or LOTT to enable Goldman Sachs and
its counsel to evaluate such matters;

(f) ERISA. (i) Promptly upon becoming aware of the occurrence of or forthcoming
occurrence of any ERISA Event, a written notice specifying the nature thereof, what action DUHI or
any of its ERISA Affiliates has taken, is taking or proposes to take with respect thereto and, when
known, any action taken or threatened by the Internal Revenue Service, the Department of Labor or
the PBGC with respect thereto; and (ii) with reasonable promptness, copies of (1) each Schedule B
(Actuarial Information) to the annual report (Form 5500 Series) filed by DUHI or any of its ERISA
Affiliates with the Internal Revenue Service with respect to each Pension Plan; (2) all notices
received by DUHI or any of its ERISA Affiliates from a Multiemployer Plan sponsor concerning an
ERISA Event; and (3) copies of such other documents or governmental reports or filings relating to
any Employee Benefit Plan as Goldman Sachs shall reasonably request;

(g) Information Regarding Collateral. (a) LOTT will furnish to Goldman Sachs prompt
written notice of any change (i) in any Obligor’s corporate name, (ii) in any Obligor’s identity or
corporate structure, (iii) in any Obligor’s jurisdiction of organization or (iv) in any Obligor’s
Federal Taxpayer Identification Number or state organizational identification number. LOTT agrees
not to effect or permit any change referred to in the preceding sentence unless all filings have
been made under the Uniform Commercial Code or otherwise that are
required in order for Goldman Sachs to continue at all times following such change to have a
valid, legal and perfected security interest in all the Collateral as contemplated in the
Collateral Documents. LOTT also agrees promptly to notify Goldman Sachs if any material portion of
the Collateral is damaged or destroyed; and

 

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(h) Other Information. (A) Promptly upon their becoming available, copies of (i) all
financial statements, reports, notices and proxy statements sent or made available generally by
DUHI to its security holders acting in such capacity or by any Subsidiary of DUHI to its equity
holders, bondholders or holders of any other of its securities acting in such capacity or by any
Subsidiary of DUHI to its security holders other than DUHI or another Subsidiary of DUHI, (ii) all
regular and periodic reports and all registration statements and prospectuses, if any, filed by
DUHI or any of its Subsidiaries with any securities exchange or with the Securities and Exchange
Commission or any other Governmental Authority, (iii) all press releases and other statements made
available generally by DUHI or any of its Subsidiaries to the public concerning material
developments in the business of DUHI or any of its Subsidiaries, and (B) such other information and
data with respect to DUHI or any of its Subsidiaries as from time to time may be reasonably
requested by Goldman Sachs.

5.2. Existence. Except as otherwise permitted under Section 6.2, each Obligor will, and Lion will cause
each of its Subsidiaries to, at all times preserve and keep in full force and effect its existence
and all rights and franchises, licenses and permits related to its business, except where failure
to so keep any rights and franchises, licenses and permits could not reasonably be expected to
cause a Material Adverse Effect.

5.3. Payment of Taxes and Claims. Each Obligor will, and Lion will cause each of its Subsidiaries to, pay all Taxes imposed
upon it or any of its properties or assets or in respect of any of its income, businesses or
franchises before any penalty or fine accrues thereon, and all claims (including claims for labor,
services, materials and supplies) for sums that have become due and payable and that by law have or
may become a Lien upon any of its properties or assets, prior to the time when any penalty or fine
shall be incurred with respect thereto; provided, no such Tax or claim need be paid if it
is being contested in good faith by appropriate proceedings promptly instituted and diligently
conducted, so long as (a) adequate reserve or other appropriate provision, as shall be required in
conformity with GAAP shall have been made therefor, and (b) in the case of a Tax or claim which has
or may become a Lien against any of the Collateral, such contest proceedings conclusively operate
to stay the sale of any portion of the Collateral to satisfy such Tax or claim. No Obligor will,
nor will it permit any of its Subsidiaries to, file or consent to the filing of any consolidated
income tax return with any Person (other than DUHI or any of its Subsidiaries).

5.4. Maintenance of Properties. Lion will, and will cause each of its Subsidiaries to, maintain or cause to be maintained
in good repair, working order and condition (in all material respects), ordinary wear and tear,
damage by casualty and condemnation excepted all material properties used or useful in the
business of DUHI and its Subsidiaries and from time to time will make or cause to be made all
appropriate repairs, renewals and replacements thereof.

 

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5.5. Insurance. DUHI will maintain or cause to be maintained, with financially sound and reputable
insurers, such public liability insurance, third party property damage insurance, business
interruption insurance, open cargo insurance and casualty insurance with respect to liabilities,
losses or damage in respect of the assets, properties and businesses of DUHI and its Subsidiaries
as may customarily be carried or maintained under similar circumstances by Persons of established
reputation engaged in similar businesses, in each case in such amounts (giving effect to
self-insurance), with such deductibles, covering such risks and otherwise on such terms and
conditions as shall be customary for such Persons. Without limiting the generality of the
foregoing, DUHI will maintain or cause to be maintained replacement value casualty insurance on the
Collateral under such policies of insurance, with such insurance companies, in such amounts, with
such deductibles, and covering such risks as are at all times carried or maintained under similar
circumstances by Persons of established reputation engaged in similar businesses. Each such policy
of insurance shall (i) name Goldman Sachs as an additional insured thereunder as its interests may
appear, (ii) in the case of each casualty insurance policy and open cargo policy, contain a loss
payable clause or endorsement, satisfactory in form and substance to Goldman Sachs, that names
Goldman Sachs as the loss payee thereunder and provide for at least thirty days’ prior written
notice to Goldman Sachs of any modification or cancellation of such policy. Upon request of
Goldman Sachs, DUHI will furnish or cause to be furnished to Goldman Sachs copies of the applicable
policies and all renewals thereof or, if not available, copies of the binders covering the
Collateral. Goldman Sachs shall not be responsible for the solvency of any company issuing any
insurance policy, whether or not selected or approved by it, or for the collection of any amounts
due under any such policy.

5.6. Books and Records; Inspections. Each Obligor will, and will cause each of its Subsidiaries to, keep proper books of record
and accounts in which full, true and correct entries in conformity in all material respects with
GAAP shall be made of all dealings and transactions in relation to its business and activities.
Each Obligor will, and will cause each of its Subsidiaries to, permit any authorized
representatives designated by Goldman Sachs to visit and inspect any of the properties of any
Obligor and any of its respective Subsidiaries, to inspect, copy and take extracts from its and
their financial and accounting records, and to discuss its and their affairs, finances and accounts
with its and their officers and independent public accountants, all upon reasonable notice and at
such reasonable times during normal business hours and as often as may reasonably be requested.

5.7. Compliance with Laws. Each Obligor will comply, and shall cause each of its Subsidiaries and all other Persons,
if any, on or occupying any Facilities to comply, with the requirements of all applicable laws,
rules, regulations and orders of any Governmental Authority (including all Environmental
Laws), noncompliance with which could reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect.

5.8. Environmental.

(a) Environmental Disclosure. DUHI will deliver to Goldman Sachs:

(i) as soon as practicable following receipt thereof, copies of all environmental
audits, investigations, analyses and reports of any kind or character, whether prepared by
personnel of DUHI or any of its Subsidiaries or by independent consultants, governmental
authorities or any other Persons, with respect to material environmental matters at any
Facility or with respect to any material Environmental Claims;

 

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(ii) promptly upon the occurrence thereof, written notice describing in reasonable
detail (1) any material Release required to be reported to any Governmental Authority under
any applicable Environmental Laws, (2) any remedial action taken by DUHI or any other Person
in response to (A) any Hazardous Materials Activities the existence of which has a
reasonable possibility of resulting in one or more Environmental Claims having, individually
or in the aggregate, a Material Adverse Effect, or (B) any Environmental Claims that,
individually or in the aggregate, have a reasonable possibility of resulting in a Material
Adverse Effect, and (3) DUHI or LOTT’s discovery of any occurrence or condition on any real
property adjoining or in the vicinity of any Facility that could cause such Facility or any
part thereof to be subject to any material restrictions on the ownership, occupancy,
transferability or use thereof under any Environmental Laws;

(iii) as soon as practicable following the sending or receipt thereof by DUHI or any of
its Subsidiaries, a copy of any and all written communications with respect to (1) any
Environmental Claims that, individually or in the aggregate, have a reasonable possibility
of giving rise to a Material Adverse Effect, (2) any material Release required to be
reported to any Governmental Authority, and (3) any request for information from any
Governmental Authority that suggests such Governmental Authority is investigating whether
DUHI or any of its Subsidiaries may be potentially responsible for any Hazardous Materials
Activity;

(iv) prompt written notice describing in reasonable detail (1) any proposed acquisition
of stock, assets, or property by DUHI or any of its Subsidiaries that could reasonably be
expected to (A) expose DUHI or any of its Subsidiaries to, or result in, Environmental
Claims that could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect or (B) affect the ability of DUHI or any of its Subsidiaries to
maintain in full force and effect all material Governmental Authorizations required under
any Environmental Laws for their respective operations and (2) any proposed action to be
taken by DUHI or any of its Subsidiaries to modify current operations in a manner that could
reasonably be expected to subject DUHI or any of its
Subsidiaries to any additional material obligations or requirements under any
Environmental Laws; and

(v) with reasonable promptness, such other documents and information as from time to
time may be reasonably requested by Goldman Sachs in relation to any matters disclosed
pursuant to this Section 5.8(a).

(b) Hazardous Materials Activities, Etc. Each Obligor shall promptly take, and shall
cause each of its Subsidiaries promptly to take, any and all actions necessary to (i) cure any
violation of applicable Environmental Laws by such Obligor or its Subsidiaries that could
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, and
(ii) make an appropriate response to any Environmental Claim against such Obligor or any of its
Subsidiaries and discharge any obligations it may have to any Person thereunder where failure to do
so could reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect.

 

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5.9. Further Assurances. At any time or from time to time upon the request of Goldman Sachs, each Obligor will, at
its expense, promptly execute, acknowledge and deliver such further documents and do such other
acts and things as Goldman Sachs or Goldman Sachs may reasonably request in order to effect fully
the purposes of the Credit Documents. In furtherance and not in limitation of the foregoing, each
Obligor shall take such actions as Goldman Sachs may reasonably request from time to time to ensure
that the Obligations are guarantied by each Guarantor and are secured by the Collateral.

5.10. Oil Transactions. Each Obligor shall, and shall cause its Subsidiaries to, (a) comply in all respects with its
material obligations under any Material Contract, (b) enforce, defend and protect all of its
material rights contained in any of the Material Contract, (c) take all reasonable and necessary
actions to prevent the termination or cancellation of any of the Material Contract;
provided that the foregoing shall not prohibit any Obligor or any Subsidiary thereof from
permitting a Material Contract to expire in accordance with its terms and (d) provide Goldman Sachs
with any documents or other information related to any Material Contract or the transactions
thereunder as reasonably requested by Goldman Sachs.

SECTION 6. NEGATIVE COVENANTS

Each Obligor covenants and agrees that, so long as this Agreement is in effect and until
payment in full of all Obligations, such Obligor shall perform, and shall cause each of its
Subsidiaries to perform, all covenants in this Section 6.

6.1. Liens. No Obligor shall, nor shall it permit any of its Subsidiaries to, directly or indirectly,
create, incur, assume or permit to exist any Lien on or with respect to the Collateral, or file or
permit the filing of, or permit to remain in effect, any financing statement or other similar
notice of any Lien with respect to the Collateral, other than (i) the Liens created under any of
the Credit Documents, (ii) the Aron Lien and (iii) so long as the Liens created under the Credit
Documents are First Priority Liens, Permitted Liens.

6.2. Fundamental Changes. No Obligor shall, nor shall Lion permit any of its Subsidiaries to, enter into and
consummate any transaction of merger or consolidation, or liquidate, wind-up or dissolve itself (or
suffer any liquidation or dissolution), or convey, sell, lease or license, exchange, transfer or
otherwise dispose of, in one transaction or a series of transactions, all or substantially all of
its business, assets or property, except that any Subsidiary of DUHI that is not an Obligor may be
merged with or into any other Subsidiary of DUHI that is not an Obligor.

6.3. Conduct of Business. From and after the Closing Date, no Obligor shall, nor shall Lion permit any of its
Subsidiaries to, engage in any business other than (i) the businesses engaged in by such Obligor on
the Closing Date and similar or related businesses and customary ancillary businesses associated
therewith and (ii) such other lines of business as may be consented to by Goldman Sachs.

6.4. Amendments or Waivers of Organizational Documents and Certain Related Agreements. No Obligor shall nor shall Lion permit any of its Subsidiaries to, agree to any material
amendment, restatement, supplement or other modification to, or waiver of, any of its
Organizational Documents or any of its material rights or obligations under any Related Agreement
after the Closing Date without in each case obtaining the prior written consent of Goldman Sachs to
such amendment, restatement, supplement or other modification or waiver.

 

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SECTION 7. GUARANTY

7.1. Guaranty of the Obligations. Guarantors jointly and severally hereby irrevocably and unconditionally guaranty to Goldman
Sachs the due and punctual payment in full of all Obligations when the same shall become due,
whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise
(including amounts that would become due but for the operation of the automatic stay under Section
362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)) (collectively, the “Guaranteed Obligations”).

7.2. Payment by Guarantors. Guarantors hereby jointly and severally agree, in furtherance of the foregoing and not in
limitation of any other right which Goldman Sachs may have at law or in equity against any
Guarantor by virtue hereof, that upon the failure of LOTT to pay any of the Guaranteed
Obligations when and as the same shall become due, whether at stated maturity, by required
prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due
but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C.
§ 362(a)), Guarantors will upon demand pay, or cause to be paid, in Cash, to Goldman Sachs an
amount equal to the sum of the unpaid principal amount of all Guaranteed Obligations then due as
aforesaid, accrued and unpaid interest on such Guaranteed Obligations (including interest which,
but for LOTT’s becoming the subject of a case under the Bankruptcy Code, would have accrued on such
Guaranteed Obligations, whether or not a claim is allowed against LOTT for such interest in the
related bankruptcy case) and all other Guaranteed Obligations then owed to Goldman Sachs as
aforesaid.

7.3. Liability of Guarantors Absolute. Each Guarantor agrees that its obligations hereunder are irrevocable, absolute, independent
and unconditional and shall not be affected by any circumstance which constitutes a legal or
equitable discharge of a guarantor or surety other than payment in full of the Guaranteed
Obligations. In furtherance of the foregoing and without limiting the generality thereof, each
Guarantor agrees as follows:

(a) this Guaranty is a guaranty of payment when due and not of collectability. This Guaranty
is a primary obligation of each Guarantor and not merely a contract of surety;

(b) Goldman Sachs may enforce this Guaranty upon the occurrence of an Event of Default
notwithstanding the existence of any dispute between LOTT and Goldman Sachs with respect to the
existence of such Event of Default;

(c) the obligations of each Guarantor hereunder are independent of the obligations of LOTT and
the obligations of any other guarantor (including any other Guarantor) of the obligations of LOTT,
and a separate action or actions may be brought and prosecuted against such Guarantor whether or
not any action is brought against LOTT or any of such other guarantors and whether or not LOTT is
joined in any such action or actions;

(d) payment by any Guarantor of a portion, but not all, of the Guaranteed Obligations shall in
no way limit, affect, modify or abridge any Guarantor’s liability for any portion of the Guaranteed
Obligations which has not been paid. Without limiting the generality of the foregoing, if Goldman
Sachs is awarded a judgment in any suit brought to enforce any Guarantor’s covenant to pay a
portion of the Guaranteed Obligations, such judgment shall not be deemed to release any Guarantor
from its covenant to pay the portion of the Guaranteed Obligations that is not the subject of such
suit, and such judgment shall not, except to the extent satisfied by such Guarantor, limit, affect,
modify or abridge any other Guarantor’s liability hereunder in respect of the Guaranteed
Obligations;

 

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(e) Goldman Sachs, upon such terms as it deems appropriate, without notice or demand and
without affecting the validity or enforceability hereof or giving rise to any reduction,
limitation, impairment, discharge or termination of any Guarantor’s liability hereunder, from time
to time may (i) renew, extend, accelerate, increase the rate of interest on, or otherwise change
the time, place, manner or terms of payment of the Guaranteed Obligations; (ii)
settle, compromise, release or discharge, or accept or refuse any offer of performance with
respect to, or substitutions for, the Guaranteed Obligations or any agreement relating thereto
and/or subordinate the payment of the same to the payment of any other obligations; (iii) request
and accept other guaranties of the Guaranteed Obligations and take and hold security for the
payment hereof or the Guaranteed Obligations; (iv) release, surrender, exchange, substitute,
compromise, settle, rescind, waive, alter, subordinate or modify, with or without consideration,
any security for payment of the Guaranteed Obligations, any other guaranties of the Guaranteed
Obligations, or any other obligation of any Person (including any other Guarantor) with respect to
the Guaranteed Obligations; (v) enforce and apply any security now or hereafter held by or for the
benefit of Goldman Sachs in respect hereof or the Guaranteed Obligations and direct the order or
manner of sale thereof, or exercise any other right or remedy that Goldman Sachs may have against
any such security, in each case as Goldman Sachs in its discretion may determine consistent
herewith and any applicable security agreement, including foreclosure on any such security pursuant
to one or more judicial or nonjudicial sales, whether or not every aspect of any such sale is
commercially reasonable, and even though such action operates to impair or extinguish any right of
reimbursement or subrogation or other right or remedy of any Guarantor against any other Obligor or
any security for the Guaranteed Obligations; and (vi) exercise any other rights available to it
under the Credit Documents; and

(f) this Guaranty and the obligations of Guarantors hereunder shall be valid and enforceable
and shall not be subject to any reduction, limitation, impairment, discharge or termination for any
reason (other than payment in full of the Guaranteed Obligations), including the occurrence of any
of the following, whether or not any Guarantor shall have had notice or knowledge of any of them:
(i) any failure or omission to assert or enforce or agreement or election not to assert or enforce,
or the stay or enjoining, by order of court, by operation of law or otherwise, of the exercise or
enforcement of, any claim or demand or any right, power or remedy (whether arising under the Credit
Documents, at law, in equity or otherwise) with respect to the Guaranteed Obligations or any
agreement relating thereto, or with respect to any other guaranty of or security for the payment of
the Guaranteed Obligations; (ii) any rescission, waiver, amendment or modification of, or any
consent to departure from, any of the terms or provisions (including provisions relating to events
of default) hereof, any of the other Credit Documents or any agreement or instrument executed
pursuant thereto, or of any other guaranty or security for the Guaranteed Obligations, in each case
whether or not in accordance with the terms hereof or such Credit Document or any agreement
relating to such other guaranty or security; (iii) the Guaranteed Obligations, or any agreement
relating thereto, at any time being found to be illegal, invalid or unenforceable in any respect;
(iv) the application of payments received from any source (other than payments received pursuant to
the other Credit Documents or from the proceeds of any security for the Guaranteed Obligations,
except to the extent such security also serves as collateral for indebtedness other than the
Guaranteed Obligations) to the payment of indebtedness other than the Guaranteed Obligations, even
though Goldman Sachs might have elected to apply such payment to any part or all of the Guaranteed
Obligations; (v) Goldman Sachs’ consent to the change, reorganization or termination of the
corporate structure or existence of DUHI or any of its Subsidiaries and to any corresponding
restructuring of the Guaranteed Obligations; (vi) any failure to perfect or continue perfection of
a security interest in any collateral which secures any of the Guaranteed Obligations; (vii) any
defenses, set-offs or counterclaims which LOTT may allege or assert against Goldman Sachs in
respect of the Guaranteed Obligations, including failure of consideration, breach of warranty,
payment, statute
of frauds, statute of limitations, accord and satisfaction and usury; and (viii) any other act
or thing or omission, or delay to do any other act or thing, which may or might in any manner or to
any extent vary the risk of any Guarantor as an obligor in respect of the Guaranteed Obligations.

 

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7.4. Waivers by Guarantors. Each Guarantor hereby waives, for the benefit of Goldman Sachs: (a) any right to require
Goldman Sachs, as a condition of payment or performance by such Guarantor, to (i) proceed against
LOTT, any other guarantor (including any other Guarantor) of the Guaranteed Obligations or any
other Person, (ii) proceed against or exhaust any security held from LOTT, any such other guarantor
or any other Person, (iii) proceed against or have resort to any balance of any Deposit Account or
credit on the books of Goldman Sachs in favor of any Obligor or any other Person, or (iv) pursue
any other remedy in the power of Goldman Sachs whatsoever; (b) any defense arising by reason of the
incapacity, lack of authority or any disability or other defense of LOTT or any other Guarantor
including any defense based on or arising out of the lack of validity or the unenforceability of
the Guaranteed Obligations or any agreement or instrument relating thereto or by reason of the
cessation of the liability of LOTT or any other Guarantor from any cause other than payment in full
of the Guaranteed Obligations; (c) any defense based upon any statute or rule of law which provides
that the obligation of a surety must be neither larger in amount nor in other respects more
burdensome than that of the principal; (d) any defense based upon Goldman Sachs’ errors or
omissions in the administration of the Guaranteed Obligations, except behavior which amounts to bad
faith; (e) (i) any principles or provisions of law, statutory or otherwise, which are or might be
in conflict with the terms hereof and any legal or equitable discharge of such Guarantor’s
obligations hereunder, (ii) the benefit of any statute of limitations affecting such Guarantor’s
liability hereunder or the enforcement hereof, (iii) any rights to set-offs, recoupments and
counterclaims, and (iv) promptness, diligence and any requirement that Goldman Sachs protect,
secure, perfect or insure any security interest or lien or any property subject thereto; (f)
notices, demands, presentments, protests, notices of protest, notices of dishonor and notices of
any action or inaction, including acceptance hereof, notices of default hereunder or any agreement
or instrument related thereto, notices of any renewal, extension or modification of the Guaranteed
Obligations or any agreement related thereto, notices of any extension of credit to LOTT and
notices of any of the matters referred to in Section 7.3 and any right to consent to any thereof;
and (g) any defenses or benefits that may be derived from or afforded by law which limit the
liability of or exonerate guarantors or sureties, or which may conflict with the terms hereof.

 

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7.5. Guarantors’ Rights of Subrogation, Contribution, Etc. Until the Guaranteed Obligations shall have been indefeasibly paid in full, each Guarantor
hereby waives any claim, right or remedy, direct or indirect, that such Guarantor now has or may
hereafter have against LOTT or any other Guarantor or any of its assets in connection with this
Guaranty or the performance by such Guarantor of its obligations hereunder, in each case whether
such claim, right or remedy arises in equity, under contract, by statute, under common law or
otherwise and including (a) any right of subrogation, reimbursement or indemnification that such
Guarantor now has or may hereafter have against LOTT with respect to the Guaranteed Obligations,
(b) any right to enforce, or to participate in, any claim, right or remedy that Goldman Sachs now
has or may hereafter have against LOTT, and (c) any benefit
of, and any right to participate in, any collateral or security now or hereafter held by
Goldman Sachs. In addition, until the Guaranteed Obligations shall have been indefeasibly paid in
full, each Guarantor shall withhold exercise of any right of contribution such Guarantor may have
against any other guarantor (including any other Guarantor) of the Guaranteed Obligations. Each
Guarantor further agrees that, to the extent the waiver or agreement to withhold the exercise of
its rights of subrogation, reimbursement, indemnification and contribution as set forth herein is
found by a court of competent jurisdiction to be void or voidable for any reason, any rights of
subrogation, reimbursement or indemnification such Guarantor may have against LOTT or against any
collateral or security, and any rights of contribution such Guarantor may have against any such
other guarantor, shall be junior and subordinate to any rights Goldman Sachs may have against LOTT,
to all right, title and interest Goldman Sachs may have in any such collateral or security, and to
any right Goldman Sachs may have against such other guarantor. If any amount shall be paid to any
Guarantor on account of any such subrogation, reimbursement, indemnification or contribution rights
at any time when all Guaranteed Obligations shall not have been finally and indefeasibly paid in
full, such amount shall be held in trust for Goldman Sachs and shall forthwith be paid over to
Goldman Sachs for the benefit of Goldman Sachs to be credited and applied against the Guaranteed
Obligations, whether matured or unmatured, in accordance with the terms hereof.

7.6. Subordination of Other Obligations. Any Indebtedness of LOTT or any other Guarantor now or hereafter held by any Guarantor (the
“Obligee Guarantor”) is hereby subordinated in right of payment to the Guaranteed Obligations, and
any such Indebtedness collected or received by the Obligee Guarantor after an Event of Default has
occurred and is continuing shall be held in trust for Goldman Sachs and shall forthwith be paid
over to Goldman Sachs to be credited and applied against the Guaranteed Obligations but without
affecting, impairing or limiting in any manner the liability of the Obligee Guarantor under any
other provision hereof.

7.7. Continuing Guaranty. This Guaranty is a continuing guaranty and shall remain in effect until all of the
Guaranteed Obligations shall have been paid in full. Each Guarantor hereby irrevocably waives any
right to revoke this Guaranty as to future transactions giving rise to any Guaranteed Obligations.

7.8. Authority of Guarantors or LOTT. It is not necessary for Goldman Sachs to inquire into the capacity or powers of any
Guarantor or LOTT or the officers, directors or any agents acting or purporting to act on behalf of
any of them.

 

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7.9. Financial Condition of LOTT. Goldman Sachs shall not have any obligation to disclose or discuss with any Guarantor its
assessment, or any Guarantor’s assessment, of the financial condition of LOTT. Each Guarantor has
adequate means to obtain information from LOTT on a continuing basis concerning the financial
condition of LOTT and its ability to perform its obligations under the
Credit Documents, and each Guarantor assumes the responsibility for being and keeping informed
of the financial condition of LOTT and of all circumstances bearing upon the risk of nonpayment of
the Guaranteed Obligations. Each Guarantor hereby waives and relinquishes any duty on the part of
Goldman Sachs to disclose any matter, fact or thing relating to the business, operations or
conditions of LOTT now known or hereafter known by Goldman Sachs.

7.10. Bankruptcy, Etc.. (a) So long as any Guaranteed Obligations remain outstanding, no Guarantor shall, without
the prior written consent of Goldman Sachs, commence or join with any other Person in commencing
any bankruptcy, reorganization or insolvency case or proceeding of or against LOTT or any other
Guarantor. The obligations of Guarantors hereunder shall not be reduced, limited, impaired,
discharged, deferred, suspended or terminated by any case or proceeding, voluntary or involuntary,
involving the bankruptcy, insolvency, receivership, reorganization, liquidation or arrangement of
LOTT or any other Guarantor or by any defense which LOTT or any other Guarantor may have by reason
of the order, decree or decision of any court or administrative body resulting from any such
proceeding.

(b) Each Guarantor acknowledges and agrees that any interest on any portion of the Guaranteed
Obligations which accrues after the commencement of any case or proceeding referred to in clause
(a) above (or, if interest on any portion of the Guaranteed Obligations ceases to accrue by
operation of law by reason of the commencement of such case or proceeding, such interest as would
have accrued on such portion of the Guaranteed Obligations if such case or proceeding had not been
commenced) shall be included in the Guaranteed Obligations because it is the intention of
Guarantors and Goldman Sachs that the Guaranteed Obligations which are guaranteed by Guarantors
pursuant hereto should be determined without regard to any rule of law or order which may relieve
LOTT of any portion of such Guaranteed Obligations. Guarantors will permit any trustee in
bankruptcy, receiver, debtor in possession, assignee for the benefit of creditors or similar Person
to pay Goldman Sachs, or allow the claim of Goldman Sachs in respect of, any such interest accruing
after the date on which such case or proceeding is commenced.

(c) In the event that all or any portion of the Guaranteed Obligations are paid by LOTT, the
obligations of Guarantors hereunder shall continue and remain in full force and effect or be
reinstated, as the case may be, in the event that all or any part of such payment(s) are rescinded
or recovered directly or indirectly from Goldman Sachs as a preference, fraudulent transfer or
otherwise, and any such payments which are so rescinded or recovered shall constitute Guaranteed
Obligations for all purposes hereunder.

 

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SECTION 8. EVENTS OF DEFAULT

8.1. Events of Default. If any one or more of the following conditions or events shall occur:

(a) Failure to Make Payments When Due. Failure by LOTT to pay when due any
reimbursement obligation, fee or other amount due hereunder within five days after the date due; or

(b) Default in Other Agreements. (i) Failure of any Obligor or any of their
respective Subsidiaries to pay when due any principal of or interest on or any other amount,
including any payment in settlement, payable in respect of one or more items of Indebtedness (other
than Indebtedness referred to in Section 8.1(a)) with an aggregate principal amount (or Net
Mark-to-Market Exposure) of $10,000,000 or more, in each case beyond the grace period, if any,
provided therefor; (ii) breach or default by any Obligor with respect to any other material term of
(1) one or more items of Indebtedness in the individual or aggregate principal amounts (or Net
Mark-to-Market Exposure) referred to in clause (i) above, or (2) any loan agreement, mortgage,
indenture or other agreement relating to such item(s) of Indebtedness, in each case beyond the
grace period, if any, provided therefor, if the effect of such breach or default is to cause, or to
permit the holder or holders of that Indebtedness (or a trustee on behalf of such holder or
holders), to cause, that Indebtedness to become or be declared due and payable (or subject to a
compulsory repurchase or redeemable) prior to its stated maturity or the stated maturity of any
underlying obligation, as the case may be; (iii) any “Event of Default” (or any comparable term)
shall have occurred under the Aron Agreement; or

(c) Breach of Certain Covenants. Failure of any Obligor to perform or comply with any
term or condition contained in Section 2.5, Sections 5.1(a), 5.1(b) and 5.1(d), Section 5.2 or
Section 6; or

(d) Breach of Representations, Etc. Any representation, warranty, certification or
other statement made or deemed made by any Obligor in any Credit Document or in any statement or
certificate at any time given by any Obligor or any of its Subsidiaries in writing pursuant hereto
or thereto or in connection herewith or therewith shall be false in any material respect as of the
date made or deemed made; or

(e) Other Defaults Under Credit Documents. Any Obligor shall default in the
performance of or compliance with any term contained herein or any of the other Credit Documents,
other than any such term referred to in any other Section of this Section 8.1, and such default
shall not have been remedied or waived within thirty days after the earlier of (i) an officer of
such Obligor becoming aware of such default or (ii) receipt by LOTT of notice from Goldman Sachs of
such default; or

(f) Involuntary Bankruptcy; Appointment of Receiver, Etc. (i) A court of competent
jurisdiction shall enter a decree or order for relief in respect of DUHI or any of its Subsidiaries
in an involuntary case under any Debtor Relief Laws now or hereafter in effect, which decree or
order is not stayed; or any other similar relief shall be granted under any applicable federal or
state law; or (ii) an involuntary case shall be commenced against DUHI or any of its Subsidiaries
under any Debtor Relief Laws now or hereafter in effect; or a decree or order of a court having
jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee,
custodian or other officer having similar powers over DUHI or any of its Subsidiaries, or over all
or a substantial part of its property, shall have been entered; or there shall have occurred the
involuntary appointment of an interim receiver, trustee or other custodian
of DUHI or any of its Subsidiaries for all or a substantial part of its property; or a warrant
of attachment, execution or similar process shall have been issued against any substantial part of
the property of DUHI or any of its Subsidiaries, and any such event described in this clause (ii)
shall continue for sixty days without having been dismissed, bonded or discharged; or

 

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(g) Voluntary Bankruptcy; Appointment of Receiver, Etc. (i) DUHI or any of its
Subsidiaries shall have an order for relief entered with respect to it or shall commence a
voluntary case under any Debtor Relief Laws now or hereafter in effect, or shall consent to the
entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to
a voluntary case, under any such law, or shall consent to the appointment of or taking possession
by a receiver, trustee or other custodian for all or a substantial part of its property; or DUHI or
any of its Subsidiaries shall make any assignment for the benefit of creditors; or (ii) DUHI or any
of its Subsidiaries shall be unable, or shall fail generally, or shall admit in writing its
inability, to pay its debts as such debts become due; or the board of directors (or similar
governing body) of DUHI or any of its Subsidiaries (or any committee thereof) shall adopt any
resolution or otherwise authorize any action to approve any of the actions referred to herein or in
Section 8.1(f); or

(h) Judgments and Attachments. Any money judgment, writ or warrant of attachment or
similar process involving in the aggregate at any time an amount in excess of $10,000,000 (in
either case to the extent not adequately covered by insurance as to which a solvent and
unaffiliated insurance company has acknowledged coverage) shall be entered or filed against DUHI or
any of its Subsidiaries or any of their respective assets and shall remain undischarged, unvacated,
unbonded or unstayed for a period of sixty days (or in any event later than five days prior to the
date of any proposed sale thereunder); or

(i) Dissolution. Any order, judgment or decree shall be entered against any Obligor
decreeing the dissolution or split up of such Obligor and such order shall remain undischarged or
unstayed for a period in excess of thirty days; or

(j) Employee Benefit Plans. (i) There shall occur one or more ERISA Events which
individually or in the aggregate results in or might reasonably be expected to result in liability
of DUHI or any of its ERISA Affiliates in excess of $10,000,000 during the term hereof; or (ii)
there exists any fact or circumstance that reasonably could be expected to result in the imposition
of a Lien or security interest pursuant to Section 430(k) of the Internal Revenue Code or ERISA or
a violation of Section 436 of the Internal Revenue Code; or

(k) Change of Control. A Change of Control shall occur; or

 

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(l) Guaranties, Collateral Documents and other Credit Documents. At any time after
the execution and delivery thereof, (i) the Guaranty for any reason, other than the satisfaction in
full of all Obligations, shall cease to be in full force and effect (other than in accordance with
its terms) or shall be declared to be null and void or DUHI shall repudiate its obligations
thereunder, (ii) this Agreement or any Collateral Document ceases to be in full force and effect
(other than by reason of a release of Collateral in accordance with the terms hereof or thereof or
the satisfaction in full of the Obligations in accordance with the terms hereof) or shall be
declared null and void, or Goldman Sachs shall not have or shall cease to have a valid and
perfected Lien in any Collateral purported to be covered by the Collateral Documents with the
priority required by the relevant Collateral Document, in each case for any reason other than the
failure of Goldman Sachs to take any action within its control, or (iii) any Obligor shall contest
the validity or enforceability of any Credit Document in writing or deny in writing that it has any
further liability under any Credit Document to which it is a party or shall contest the validity or
perfection of any Lien in any Collateral purported to be covered by the Collateral Documents;

THEN, (1) upon the occurrence of any Event of Default described in Section 8.1(f) or 8.1(g),
automatically, and (2) upon the occurrence and during the continuance of any other Event of
Default, (A) each of the following shall immediately become due and payable, in each case, without
presentment, demand, protest or other requirements of any kind, all of which are hereby expressly
waived by each Obligor: (I) the unpaid principal amount of, and any accrued interest on, the
Obligations and (II) an amount equal to (x) the maximum amount that may at any time be drawn under
the Letters of Credit (regardless of whether any beneficiary under such Letters of Credit shall
have presented, or shall be entitled at such time to present, the drafts or other documents or
certificates required to draw under such Letters of Credit) less (y) the amount of
Collateral consisting of cash in which Lion or LOTT has created, in favor of Goldman Sachs, a
valid, perfected First Priority security interest; (B) Goldman Sachs may enforce any and all Liens
and security interests created pursuant to Collateral Documents; and (C) upon notice from Goldman
Sachs, Borrower shall pay to Goldman Sachs such additional amounts of cash as reasonably requested
by Goldman Sachs, to be held as security for Goldman Sachs’ reimbursement obligations under the BNY
Reimbursement Agreement in respect of the Letters of Credit.

SECTION 9. MISCELLANEOUS

9.1. Notices. Notices Generally. Any notice or other communication herein required or permitted
to be given to an Obligor or Goldman Sachs shall be sent to such Person’s address as set forth on
Appendix A or in the other relevant Credit Document. Except as otherwise set forth in Section
3.2(b) or paragraph (b) below, each notice hereunder shall be in writing and may be personally
served or sent by telefacsimile (except for any notices sent to Goldman Sachs) 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 Goldman Sachs shall be effective until received by
Goldman Sachs.

 

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9.2. Expenses. Whether or not the transactions contemplated hereby shall be consummated, LOTT 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
LOTT and the other Obligors; (c) the reasonable fees, expenses and
disbursements of counsel to Agents (in each case including allocated costs of internal
counsel) 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 LOTT; (d) all the actual costs and reasonable expenses of
creating, perfecting, recording, maintaining and preserving Liens in favor of Goldman Sachs
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 Goldman
Sachs and of counsel providing any opinions that any Goldman Sachs 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 Goldman Sachs and its counsel) in connection with the custody or preservation of any of the
Collateral; (g) all other actual and reasonable costs and expenses incurred by Goldman Sachs in
connection with entry into the BNY Reimbursement Agreement, the procurement of the Letters of
Credit, 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 (including allocated costs of internal
counsel) and costs of settlement, incurred by Goldman Sachs in enforcing any Obligations of or in
collecting any payments due from any Obligor 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 the enforcement of the
Guaranty) 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, each Obligor agrees to defend (subject to
Indemnitees’ selection of counsel), indemnify, pay and hold harmless, Goldman Sachs 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, no Obligor shall 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 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, the applicable Obligor
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) To the extent permitted by applicable law, no Obligor shall assert, and each Obligor
hereby waives, any claim against Goldman Sachs and its Affiliates, directors,
employees, attorneys, agents or 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
Credit Document or any agreement or instrument contemplated hereby or thereby or referred to herein
or therein, the transactions contemplated hereby or thereby, or any act or omission or event
occurring in connection therewith, and DUHI and LOTT 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.

 

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(c) Each Obligor also agrees that none of Goldman Sachs nor its Affiliates, directors,
employees, attorneys, agents or sub-agents will have any liability to any Obligor or any person
asserting claims on behalf of or in right of any Obligor or any other person in connection with or
as a result of this Agreement or any Credit Document or any agreement or instrument contemplated
hereby or thereby or referred to herein or therein, the transactions contemplated hereby or
thereby, or any act or omission or event occurring in connection therewith, in each case, except in
the case of any Obligor to the extent that any losses, claims, damages, liabilities or expenses
incurred by such Obligor or its affiliates, shareholders, partners 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 Goldman Sachs or its Affiliates,
directors, employees, attorneys, agents or sub-agents in performing its obligations under this
Agreement or any Credit Document or any agreement or instrument contemplated hereby or thereby or
referred to herein or therein; provided, however, that in no event will Goldman Sachs or its
Affiliates, directors, employees, attorneys, agents or sub-agents have any liability for any
indirect, consequential, special or punitive damages in connection with or as a result of Goldman
Sachs’ or its Affiliates’, directors’, employees’, attorneys’, agents’ or sub-agents’ activities
related to this Agreement or any Credit Document or any agreement or instrument contemplated hereby
or thereby or referred to herein or therein.

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 each GS Related Party is
hereby authorized by each Obligor at any time or from time to time, without notice to any Obligor
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 any GS Related Party to or for the credit or the
account of any Obligor against and on account of the obligations and liabilities of any Obligor to
any GS Related Party Sachs hereunder and under the other Credit Documents, including all claims of
any nature or description arising out of or connected hereto or with any other Credit Document,
irrespective of whether or not (a) such GS Related Party shall have made any demand hereunder or
(b) any 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. The rights of
the GS Related Parties under this Section are in addition to other rights and remedies (including
other rights of setoff) that the GS Related Parties may have.

9.5. Amendments and Waivers. No amendment, modification, termination or waiver of any provisions of the Credit Documents,
or consent to any departure by any Obligor therefrom, shall in any event be effective with the
written concurrence of Goldman Sachs and each Obligor.

 

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9.6. Successors and Assigns. 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 the successors and assigns of
Goldman Sachs. No Obligor’s rights or obligations hereunder nor any interest therein may be
assigned or delegated by any Obligor without the prior written consent of Goldman Sachs. 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, Affiliates of Goldman Sachs) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

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 of the Letters of Credit. Notwithstanding anything herein or
implied by law to the contrary, the agreements of each Obligor set forth in Sections 2.5, 10.2,
10.3 and 10.4 and the agreements of Goldman Sachs set forth in Sections 9.3(b) and 9.6 shall
survive the payment of the Obligations, and the termination hereof.

9.9. No Waiver; Remedies Cumulative. No failure or delay on the part of Goldman Sachs 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 Goldman Sachs
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, 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. Goldman Sachs shall not be under any obligation to marshal any assets in favor of any
Obligor or any other Person or against or in payment of any or all of the Obligations. To the
extent that any Obligor makes a payment or payments to Goldman Sachs, or Goldman Sachs 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.

 

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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 (INCLUDING, WITHOUT
LIMITATION, ANY CLAIMS SOUNDING IN CONTRACT LAW OR TORT LAW ARISING OUT OF THE SUBJECT MATTER
HEREOF AND ANY DETERMINATIONS WITH RESPECT TO POST-JUDGMENT INTEREST) SHALL BE GOVERNED BY, AND
SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER
THAN THE LAW OF THE STATE OF NEW YORK.

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 FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN THE
BOROUGH OF MANHATTAN OR, IF THAT COURT DOES NOT HAVE SUBJECT MATTER JURISDICTION, IN ANY STATE
COURT LOCATED IN THE CITY AND COUNTY OF NEW YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH
CREDIT PARTY, 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 GOLDMAN SACHS IN
RESPECT OF ITS RIGHTS UNDER ANY SECURITY AGREEMENT 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 THE APPLICABLE
CREDIT PARTY AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 10.1; (D) AGREES THAT SERVICE AS
PROVIDED IN CLAUSE (C) ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE
CREDIT PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND
BINDING SERVICE IN EVERY RESPECT; AND (E) AGREES THAT AGENTS AND LENDERS RETAIN THE RIGHT TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY CREDIT PARTY IN
THE COURTS OF ANY OTHER JURISDICTION IN CONNECTION WITH THE EXERCISE OF ANY RIGHTS UNDER ANY
SECURITY DOCUMENT OR THE ENFORCEMENT OF ANY JUDGMENT.

 

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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 THE
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 10.16 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. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT.

9.16. Confidentiality. Goldman Sachs shall hold all non-public information regarding DUHI and its Subsidiaries and
their businesses identified as such by DUHI and obtained by Goldman Sachs pursuant to the
requirements hereof in accordance with Goldman Sachs’s customary procedures for handling
confidential information of such nature, it being understood and agreed by DUHI that, in any event,
Goldman Sachs may make (i) disclosures of such information to its Affiliates and to their
respective agents and advisors in connection with the transactions contemplated by the Credit
Documents or the Related Agreements (and to other Persons authorized by Goldman Sachs to organize,
present or disseminate such information in connection with disclosures otherwise made in accordance
with this Section 9.16), (ii) disclosures of such information reasonably required by any direct or
indirect contractual counterparties (or the professional advisors thereto) to any swap or
derivative transaction relating to DUHI 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 Obligors received by it from Goldman Sachs, (iv) disclosures
in connection with the exercise of any remedies hereunder or under any other Credit Document, (v)
disclosures with the consent of any Obligor, and (vi) disclosures required or requested by any
governmental agency or representative thereof or pursuant to legal or judicial process;
provided, unless specifically prohibited by applicable law or court order, Goldman Sachs
shall make reasonable efforts to notify LOTT 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 Goldman Sachs by such governmental agency) for
disclosure of any such non-public information prior to disclosure of such information. In
addition, Goldman Sachs 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 Goldman Sachs in connection with the administration and management of this
Agreement and the other Credit Documents.

 

47

 

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 Loans made hereunder 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 hereunder 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, LOTT shall pay to Goldman Sachs 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 Goldman Sachs and LOTT to conform strictly to any applicable
usury laws. Accordingly, if Goldman Sachs 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 Goldman Sachs’ option be applied to the
outstanding Obligations or be refunded to LOTT.

9.18. Effectiveness; Counterparts. This Agreement shall become effective upon the execution of a counterpart hereof by each of
the parties hereto and receipt by LOTT and Goldman Sachs of written notification of such execution
and authorization of delivery thereof. 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. Delivery of an
executed counterpart of a signature page of this Agreement by facsimile or in electronic format
(i.e., “pdf” or “tif” shall be effective as delivery of a manually executed counterpart of this
Agreement.

9.19. Entire Agreement. With the exception of those terms contained in the Letter Agreement, dated April 29, 2011,
among Goldman Sachs and DUHI (the “Fee Letter”), which by the terms of the Fee Letter remain in
full force and effect (such terms the “Surviving Terms”) all of Goldman Sachs’ and its Affiliates
obligations under the Fee Letter shall terminate and be superseded by the Credit Documents and
Goldman Sachs and its Affiliates shall be released from all liability in connection therewith,
including any claim for injury or damages, whether consequential, special, direct, indirect,
punitive or otherwise. LOTT hereby assumes all obligations of DUHI under the Fee Letter with
respect to the Surviving Terms.

 

48

 

9.20. PATRIOT Act. Goldman Sachs hereby notifies each Obligor that pursuant to the requirements of the PATRIOT
Act, it is required to obtain, verify and record information that identifies each Obligor, which
information includes the name and address of each Obligor and other information that will allow
Goldman Sachs to identify such Obligor in accordance with the PATRIOT Act.

9.21. No Fiduciary Duty. Goldman Sachs and its Affiliates, may have economic interests that conflict with those of
the Obligors, their stockholders and/or their affiliates. Each Obligor 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 Goldman Sachs and its Affiliates, on the
one hand, and such Obligor, its stockholders or its affiliates, on the other. The Obligors
acknowledge and agree 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 Goldman Sachs and its Affiliates, on the one hand, and the Obligors, on the other, and (ii)
in connection therewith and with the process leading thereto, (x) none of Goldman Sachs nor any of
its Affiliates has assumed an advisory or fiduciary responsibility in favor of any Obligor, 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 Goldman Sachs has advised, is currently
advising or will advise any Obligor, its stockholders or its Affiliates on other matters) or any
other obligation to any Obligor except the obligations expressly set forth in the Credit Documents
and (y) each of Goldman Sachs and its Affiliates is acting solely as principal and not as the agent
or fiduciary of any Obligor, its management, stockholders, creditors or any other Person. Each
Obligor 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. Each Obligor agrees that it
will not claim that Goldman Sachs and any of its Affiliates has rendered advisory services of any
nature or respect, or owes a fiduciary or similar duty to such Obligor, in connection with such
transaction or the process leading thereto.

•• [Remainder of page intentionally left blank]

 

49

 

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.

	 	 	 	 	 
	 	DELEK US HOLDINGS, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 
	 
	 	LION OIL COMPANY

 	 
	 	By:  	
 	 
	 	 	Name:  	                                                	 
	 	 	Title:  	  	 
	 
	 	LION OIL TRADING & TRANSPORTATION, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 
	 

Reimbursement and Guaranty Agreement

 

 

 

	 	 	 	 	 
	 	GOLDMAN SACHS LENDING PARTNERS LLC

 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

Reimbursement and Guaranty Agreement

 

 

 

APPENDIX B

TO REIMBURSEMENT AND GUARANTY AGREEMENT

Notice Addresses

	 	 	 	 	 
	•• [NAME OF BORROWER]	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Attention:	 	 
	 

	 	Facsimile:	 	 
	 

	 	E-mail:	 	 
	 
	 	 	 	 
	•• [NAME OF HOLDINGS]	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Attention:	 	 
	 

	 	Facsimile:	 	 
	 

	 	E-mail:	 	 
	 
	 	 	 	 
	•• [NAME OF SUBSIDIARY]	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Attention:	 	 
	 

	 	Facsimile:	 	 
	 

	 	E-mail:	 	 
	 
	 	 	 	 
	in each case, with a copy to:	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Attention:	 	 
	 

	 	Facsimile:	 	 
	 

	 	E-mail:	 	 

APPENDIX -1

 

 

 

GOLDMAN SACHS LENDING PARTNERS LLC

Goldman Sachs Lending Partners LLC

c/o Goldman, Sachs & Co.

30 Hudson Street, 36th Floor

Jersey City, NJ 07302

Attention: SBD Operations

Email: gsd.link@gs.com and ficc-sbdagency-nydallas@ny.email.gs.com

with a copy to:

Goldman Sachs Lending Partners LLC

200 West Street

New York, New York 10282-2198

Attention: [                    ]]

APPENDIX -2

 

 

 

APPENDIX A

TO REIMBURSEMENT AND GUARANTY AGREEMENT

Notice Addresses

	 	 	 
	DELEK US HOLDING, INC.

7102 Commerce Way,

Brentwood, Tennessee 37027,
	Attn:

	 	Mark B. Cox, CFO, and
	 

	 	Kent B. Thomas, General Counsel,
	 

	 	fax 615-435-1271
	 

	 	email kent.thomas@mapcoexpress.com
	 

	 	mark.cox@mapcoexpress.com
	 
	 	 
	LION OIL COMPANY

7102 Commerce Way,

Brentwood, Tennessee 37027,
	Attn:

	 	Mark B. Cox, CFO, and
	 

	 	Kent B. Thomas, General Counsel,
	 

	 	fax 615-435-1271
	 

	 	email kent.thomas@mapcoexpress.com
	 

	 	mark.cox@mapcoexpress.com
	 
	 	 
	LION OIL TRADING & TRANSPORTATION, INC.

7102 Commerce Way,

Brentwood, Tennessee 37027,
	Attn:

	 	Mark B. Cox, CFO, and
	 

	 	Kent B. Thomas, General Counsel,
	 

	 	fax 615-435-1271
	 

	 	email kent.thomas@mapcoexpress.com
	 

	 	mark.cox@mapcoexpress.com

GOLDMAN SACHS LENDING PARTNERS LLC

Goldman Sachs Lending Partners LLC

c/o Goldman, Sachs & Co.

30 Hudson Street, 36th Floor

Jersey City, NJ 07302

Attention:     SBD Operations

Email: gsd.link@gs.com and fic c-sbdagency-nydallas @ny.email.gs.com

with a copy to:

Goldman Sachs Lending Partners LLC

200 West Street

New York, New York 10282-2198

Attention. Anna Ostrovsky

 

 

 

Schedule 1.1

List of Existing LOCs

	 	 	 	 	 	 	 	 	 	 	 	 	 
	L/C NOS.	 	Bank	 	Beneficiary	 	Amount	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CPCS-792814
	 	J.P. Morgan Chase Bank, N.A.	 	Saudi Arabian Oil Company	 	$	75,018,958.34	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CPCS-780419
	 	J.P. Morgan Chase Bank, N.A.	 	Chevron Products Company	 	$	11,000,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CPCS-901495
	 	J.P. Morgan Chase Bank, N.A.	 	Trafigura	 	$	13,969,928.80	 

 

 

 

Schedule 4.1

Jurisdictions of Organization and Qualification

	 	 	 
	Party	 	Jurisdiction of Organization
	Delek US Holdings, Inc.

	 	Delaware
	Delek Refining, Inc.

	 	Delaware
	Delek U.S. Refining GP, LLC

	 	Texas
	Delek Refining, Ltd.

	 	Texas
	Delek Land Texas, Inc.

	 	Texas
	Delek Pipeline Texas, Inc.

	 	Texas
	MPC Land Acquisition, Inc.

	 	Texas
	MPC Pipeline Acquisition, Inc.

	 	Texas
	Lion Oil Company

	 	Arkansas
	J. Christy Construction Co., Inc.

	 	Arkansas
	Lion Oil Trading & Transportation, Inc.

	 	Arkansas
	Magnolia Pipeline Company

	 	Arkansas
	El Dorado Pipeline Company

	 	Arkansas

 

2

 

Schedule 4.2

Equity Interests and Ownership

Ownership Interest Prior to Acquisition

	 	 	 	 	 
	 	 	Percent owned directly	 
	 	 	or indirectly by Delek US	 
	Issuer	 	Holdings, Inc.	 
	Delek US Holdings, Inc.
	 	 	 	 
	Delek Refining, Inc.
	 	 	100	%
	Delek U.S. Refining, GP LLC
	 	 	100	%
	Delek Refining Ltd.
	 	0.1% of General Partner Units	 
	Delek Refining, Ltd.
	 	99.9% of Limited Partner Units	 
	Delek Land Texas, Inc.
	 	 	100	%
	MPC Land Acquisition, Inc.
	 	 	100	%
	Delek Pipeline Texas, Inc.
	 	 	100	%
	MPC Pipeline Acquisition, Inc.
	 	 	100	%

Ownership Interest after Giving Effect to Acquisition

	 	 	 	 	 
	 	 	Delek US Holdings, Inc.	 
	 	 	Percent owned directly or	 
	Issuer	 	indirectly	 
	Delek Refining, Inc.
	 	 	100	%
	Delek U.S. Refining, GP LLC
	 	 	100	%
	Delek Refining, Ltd.
	 	0.1% of General Partner Units	 
	Delek Refining, Ltd.
	 	99.9% of Limited Partner Units	 
	Delek Land Texas, Inc.
	 	 	100	%
	MPC Land Acquisition, Inc.
	 	 	100	%
	Delek Pipeline Texas, Inc.
	 	 	100	%
	MPC Pipeline Acquisition, Inc.
	 	 	100	%
	Lion Oil Company
	 	 	88.25	%
	J. Christy Construction Co., Inc.
	 	 	88.25	%
	Lion Oil Trading & Transportation, Inc.
	 	 	88.25	%
	Magnolia Pipeline Company
	 	 	88.25	%
	El Dorado Pipeline Company
	 	 	88.25	%

 

3

 

150 Third Avenue South, Suite 2800

Nashville, TN 37201

(615) 742-6200

April 29, 2011

Goldman Sachs Lending Partners LLC

200 West Street

New York, NY 10282-2198

Ladies and Gentlemen:

We have acted as counsel to Delek US Holdings, Inc., a Delaware corporation
(“Holdings”), in connection with the transactions that are the subject of the Reimbursement
Agreement, as defined below. Capitalized terms used but not otherwise defined herein have the same
meanings as in the Reimbursement Agreement.

This opinion letter is being delivered to you pursuant to Section 3.1(i) of the
Reimbursement Agreement.

In connection with this opinion, we have examined the following documents (collectively, the
“Transaction Documents”):

(1) that certain Reimbursement and Guaranty Agreement dated April 29, 2011, by and among
Goldman Sachs Lending Partners LLC, a Delaware limited liability company (“Goldman”), by
Holdings, Lion Oil Company, an Arkansas corporation (“Lion”), Lion Oil Trading &
Transportation, Inc., an Arkansas corporation (“LOTT”) (the “Reimbursement
Agreement”); and

(2) that certain Pledge and Security Agreement of even date with the Reimbursement Agreement,
executed Holdings, Lion and LOTT in favor of Goldman (the “Security Agreement”).

We have also reviewed the certificate of incorporation and bylaws of Holdings (collectively,
the “Organizational Documents”), such corporate records of Holdings, such certificates of
public officials and such other matters regarding Holdings as we have deemed necessary or
appropriate for purposes of this opinion letter. As to factual matters, we have assumed the
correctness of and relied upon statements and other representations of Holdings and the officers
thereof set forth in the Transaction Documents and in certificates provided pursuant to or in
connection with the Transaction Documents or otherwise provided to us, and upon certificates of
public officials, and we have made no independent inquiries or investigations. For purposes of the
opinions on the existence and good standing of Holdings, we have relied solely upon a certificate
of existence of recent date, issued by the Delaware Secretary of State.

 

 

 

Goldman Sachs Lending Partners LLC

April 29, 2011

Page 2

In making such examination and in expressing our opinions, we have further assumed, without
investigation or inquiry:

(a) the due organization and existence of all parties to the Transaction Documents, except to
the extent that we express an opinion in Paragraph 1 below regarding the existence of
Holdings,

(b) the legal capacity of all natural persons,

(c) the due authorization of the Transaction Documents by all parties thereto, except to the
extent that we express an opinion in Paragraph 1 below regarding the authorization of the
Transaction Documents by Holdings,

(d) the due execution and delivery of the Transaction Documents by all parties thereto, except
to the extent that we express an opinion in Paragraph 2 below regarding the execution and
delivery of the Transaction Documents by Holdings,

(e) that all parties to the Transaction Documents have the legal right, power and authority to
enter into the Transaction Documents and to consummate the transactions contemplated thereby,
except to the extent that we express an opinion in Paragraph 1 below regarding the
corporate power and corporate authority of Holdings,

(f) that all signatures on any executed documents furnished to us, other than signatures by or
on behalf of Holdings, are genuine, all original documents submitted to us are authentic originals
and all certified or other reproductions of documents submitted to us conform to the original
documents,

(g) that the indebtedness incurred and obligations undertaken pursuant to the Transaction
Documents have been incurred and undertaken for adequate consideration,

(h) that all property descriptions used in the Transaction Documents accurately and
sufficiently describe the subject property, and

(i) that to the extent that attachment of the security interests of the Transaction Documents
is governed by the law of any jurisdiction other than Tennessee, such security interests have
attached under such law.

 

 

 

Goldman Sachs Lending Partners LLC

April 29, 2011

Page 3

Based upon the foregoing and subject to the assumptions, limitations and qualifications herein
set forth, we are of the opinion that:

1. Holdings is a validly existing Delaware corporation, in good standing under the laws of
Delaware. Holdings has all necessary corporate power and corporate authority to execute and
deliver the Transaction Documents and to enter into and perform its obligations thereunder. The
execution and delivery of the Transaction Documents and the performance and observance of the
provisions thereof by Holdings have been properly authorized by all necessary corporate actions on
the part of Holdings.

2. The Transaction Documents have been duly executed and delivered by Holdings.

3. The execution, delivery and, where applicable, recording, of the Transaction Documents, and
the consummation of the financing transaction that is the subject thereof, do not (a) violate any
law or regulation of the State of Tennessee, United States of America or the Delaware General
Corporation Law, (b) contravene the Organizational Documents of Holdings and (c) constitute a
default under or breach of the terms of, or an event that, with the lapse of time or giving of
notice, or both, would constitute a default under or breach of, or require the consent (which
consent, as of the date hereof, has not been obtained) of any person under the terms of, the Aron
Agreement or the Financing Agreement (as defined in the Reimbursement Agreement).

4. No authorization, consent, approval or other action by or filing with any governmental
authority of the State of Tennessee, the United States of America or the Delaware General
Corporation Law is required under for the execution and delivery of the Transaction Documents by
Holdings.

5. The Security Agreement is effective to create an enforceable security interest in the
interest of Holdings in the personal property described therein to the extent that a security
interest therein may be created under provisions of the Uniform Commercial Code as in effect in
Tennessee (the “Tennessee UCC”).

6. Assuming that the Collateral Account (as defined in the Security Agreement) is a demand,
time, savings, passbook, or similar account maintained with an organization that is engaged in the
business of banking, and that Goldman is Citibank, N.A.’s customer with respect to the Collateral
Account, Goldman shall have “control” within the meaning of Section 9-104 of the Tennessee UCC over
the Collateral Account.

7. Assuming that Holdings applies any proceeds received by it pursuant to the Reimbursement
Agreement in compliance with the applicable requirements of the Reimbursement Agreement, the
extensions of credit contemplated by the Reimbursement Agreement do not violate the provisions of
Regulations T, U or X of the Board of Governors of the Federal Reserve System.

 

 

 

Goldman Sachs Lending Partners LLC

April 29, 2011

Page 4

8. Holdings is not an “investment company” within the meaning of the Investment Company Act of
1940, as amended.

The opinions expressed herein are limited to the laws of Tennessee, the Delaware General
Corporation Law and the federal laws of the United States of America. Our opinions regarding
existence, corporate power, corporate authority, the authorization, execution and delivery of
documents and other matters of corporate law, are based solely upon our review of the latest
unofficial compilations of the Delaware General Corporation Law that were available to us, and we
have not examined any other Delaware statutes or any court decisions from Delaware.

We express no opinion as to the enforceability of the choice of law provisions contained in
the Transaction Documents under the laws of New York or Tennessee, nor, assuming such provisions
would be enforceable under the choice-of-law principles of New York and Tennessee, do we state any
opinion as to the enforceability of the Transaction Documents under the internal laws of New York.
Notwithstanding the foregoing, you have requested us to examine the Transaction Documents and
provide you with the opinions set forth above assuming, solely for purposes of such opinions, that
the internal laws of Tennessee would govern them. If the Transaction Documents were to be governed
by the internal laws of Tennessee, our opinions would be as set forth herein. We note that if a
court of competent jurisdiction determines one or more of the Transaction Documents to be
unenforceable under the laws of New York, then such Transaction Documents may not be enforced by
Tennessee courts under applicable Tennessee conflict of law principles.

The opinions expressed herein are qualified as follows:

(a) The validity, binding nature and enforceability of any liability, obligation,
instrument, document or agreement are subject to (i) applicable bankruptcy, reorganization,
insolvency, moratorium, fraudulent conveyance, fraudulent transfer and other federal and
state laws affecting the rights and remedies of creditors, and (ii) general principles of
equity (including, without limitation, concepts of materiality, reasonableness, good faith
and fair dealing and the possible unavailability of specific performance, injunctive relief
and other equitable remedies), whether applied in a proceeding at law or in equity.

(b) We express no opinion with respect to any matters that would require us to perform
a mathematical calculation or make a determination as to financial or accounting matters
(including but not limited to compliance or noncompliance with financial covenants or
ratios).

Our opinion is rendered as of the date hereof and we assume no obligation to advise you of
changes in law or fact (or the effect thereof on the opinions expressed herein) that hereafter may
come to our attention.

 

 

 

Goldman Sachs Lending Partners LLC

April 29, 2011

Page 5

As used herein, “knowledge”, “known to us”, “to our knowledge” and any similar expression
refer solely to the current, actual knowledge, acquired during the course of the representation
described in the introductory paragraph of this letter, of those attorneys in this firm who have
rendered legal services in connection with such representation (excluding any lawyers whose
involvement has been limited to reviewing this opinion as part of our firm’s opinion review
procedure).

The opinions rendered herein are solely for the benefit of Goldman and its successors and
assigns in connection with the transactions that are the subject of the Transaction Documents, and
this opinion letter may not be delivered to or relied upon by any other person nor quoted or
reproduced in any report or other document without our prior written consent in each case;
provided, however, that a copy of this opinion letter may be furnished to your regulators,
accountants, attorneys and other professional advisors for the purpose of confirming its existence,
and this opinion letter may be disclosed in connection with any legal or regulatory proceeding
relating to the subject matter hereof.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	 	 
	 	 	 
	 	 	 

 

 

 

FORM OF CLOSING DATE CERTIFICATE

THE UNDERSIGNED HEREBY CERTIFY AS FOLLOWS:

1. I am the chief executive officer of Delek US Holdings, Inc. (“DUHI”) and Lion Oil Trading
& Transportation, Inc. (“LOTT”)].

2. I have reviewed the terms of Section 3 of the Reimbursement and Guaranty Agreement, dated
as of April 29, 2011 (as it may be amended, supplemented or otherwise modified, the “Reimbursement
Agreement”; the terms defined therein and not otherwise defined herein being used herein as therein
defined), by and among DUHI, LOTT and LION OIL COMPANY and GOLDMAN SACHS LENDING PARTNERS LLC
(“Goldman Sachs”), and the definitions and provisions contained in such Reimbursement Agreement
relating thereto, and in my opinion I have made, or have caused to be made under my supervision,
such examination or investigation as is necessary to enable me to express an informed opinion as to
the matters referred to herein.

3. Based upon my review and examination described in paragraph 2 above, I certify, on behalf
of DUHI and LOTT, that as of the date hereof:

(i) the representations and warranties contained in each of the Credit
Documents are true, correct and complete in all material respects on and as of the
Closing Date to the same extent as though made on and as of such date, except to the
extent such representations and warranties specifically relate to an earlier date,
in which case such representations and warranties are true, correct and complete in
all respects on and as of such earlier date;

(ii) no injunction or other restraining order shall have been issued and no
hearing to cause an injunction or other restraining order to be issued shall be
pending or noticed with respect to any action, suit or proceeding seeking to enjoin
or otherwise prevent the consummation of, or to recover any damages or obtain relief
as a result of, the borrowing contemplated hereby; and

(iii) no event has occurred and is continuing or would result from the
consummation of the financing contemplated hereby that would constitute an Event of
Default or a Default.

4. Attached as Annex A hereto are true and complete (and, where applicable, executed and
conformed) copies of each of the Related Agreements, and I have reviewed the terms of each of such
documents and in my opinion I have made, or have caused to be made under my supervision, such
examination or investigation as is necessary to enable me to express an informed opinion as to the
matters referred to in paragraph 3.

5. Each Obligor has requested Bass, Berry & Sims PLC to deliver to Goldman Sachs on the
Closing Date favorable written opinions setting forth substantially the matters in the opinions
designated in Exhibit A annexed to the Reimbursement Agreement, and as to such other matters as
Goldman Sachs may reasonably request.

6. Attached hereto as Annex B are true, complete and correct copies of (a) the Historical
Financial Statements, and (b) the Projections.

[Signature page to follow.]

 

 

 

The foregoing certifications are made and delivered as of April
 _____, 2011.

	 	 	 	 	 
	 

	 	 

Name: Mark B. Cox
	 	 
	 

	 	Title: Chief Financial Officer	 	 

 

 

 

FORM OF SOLVENCY CERTIFICATE

THE UNDERSIGNED HEREBY CERTIFIES AS FOLLOWS:

1. I am the chief financial officer of DELEK US HOLDINGS, INC., a Delaware corporation
(“DUHI”) and LION OIL COMPANY, an Arkansas corporation (“Lion”).

2. Reference is made to that certain Reimbursement and Guaranty Agreement, dated as of April
29, 2011 (as it may be amended, supplemented or otherwise modified, the “Reimbursement Agreement”;
the terms defined therein and not otherwise defined herein being used herein as therein defined),
by and among DUHI, Lion and LION OIL TRADING & TRANSPORTATION, INC., an Arkansas corporation
(“LOTT” and, together with DUHI and Lion the “Obligors”) and GOLDMAN SACHS LENDING PARTNERS LLC.

3. I have reviewed the terms of Sections 3 and 4 of the Reimbursement Agreement and the
definitions and provisions contained in the Reimbursement Agreement relating thereto, together with
each of the Related Agreements, and, in my opinion, have made, or have caused to be made under my
supervision, such examination or investigation as is necessary to enable me to express an informed
opinion as to the matters referred to herein.

4. Based upon my review and examination described in paragraph 3 above, I certify that as of
the date hereof, after giving effect to the consummation of the transactions contemplated by the
Related Agreements, the relating financing and the other transactions contemplated by the Credit
Documents and the Related Agreements: (a) DUHI and its Subsidiaries, taken as a whole, are Solvent,
and (b) Lion and its Subsidiaries, taken as a whole, are Solvent.

[Signature page to follow.]

 

 

 

The foregoing certifications are made and delivered as of April
 _____, 2011.

	 	 	 	 	 
	 

	 	 

Name: Mark B. Cox
	 	 
	 

	 	Title: Chief Executive Officer	 	 

 

2

 

EXECUTION VERSION

PLEDGE AND SECURITY AGREEMENT

dated as of April 29, 2011

between

EACH OF THE GRANTORS PARTY HERETO

and

GOLDMAN SACHS LENDING PARTNERS LLC,

as Collateral Agent

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE	 
	 
	 	 	 	 
	SECTION 1. DEFINITIONS; GRANT OF SECURITY
	 	 	1	 
	1.1 General Definitions
	 	 	1	 
	1.2 Definitions; Interpretation
	 	 	4	 
	 
	 	 	 	 
	SECTION 2. GRANT OF SECURITY
	 	 	5	 
	2.1 Grant of Security
	 	 	5	 
	2.2 Certain Limited Exclusions
	 	 	6	 
	 
	 	 	 	 
	SECTION 3. SECURITY FOR OBLIGATIONS; GRANTORS REMAIN LIABLE
	 	 	6	 
	3.1 Security for Obligations
	 	 	6	 
	3.2 Continuing Liability Under Collateral
	 	 	6	 
	3.3 Offtake Agreement
	 	 	7	 
	 
	 	 	 	 
	SECTION 4. CERTAIN PERFECTION REQUIREMENTS
	 	 	7	 
	4.1 Delivery Requirements
	 	 	7	 
	4.2 Notice
	 	 	7	 
	 
	 	 	 	 
	SECTION 5. REPRESENTATIONS AND WARRANTIES
	 	 	8	 
	5.1 Grantor Information & Status
	 	 	8	 
	5.2 Ownership of Collateral and Absence of Other Liens
	 	 	8	 
	5.3 Status of Security Interest
	 	 	9	 
	5.4 Goods & Receivables
	 	 	9	 
	 
	 	 	 	 
	SECTION 6. COVENANTS AND AGREEMENTS
	 	 	10	 
	6.1 Grantor Information & Status
	 	 	10	 
	6.2 Ownership of Collateral and Absence of Other Liens
	 	 	10	 
	6.3 Status of Security Interest
	 	 	10	 
	6.4 Goods & Receivables
	 	 	10	 
	6.5 Supply Paths for Foreign and Domestic Offshore Crudes
	 	 	12	 
	 
	 	 	 	 
	SECTION 7. ACCESS; RIGHT OF INSPECTION AND FURTHER ASSURANCES
	 	 	12	 
	7.1 Access; Right of Inspection; Information
	 	 	12	 
	7.2 Further Assurances
	 	 	12	 
	 
	 	 	 	 
	SECTION 8. COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT
	 	 	13	 
	8.1 Power of Attorney
	 	 	13	 
	8.2 No Duty on the Part of Collateral Agent or Secured Parties
	 	 	14	 
	 
	 	 	 	 
	SECTION 9. REMEDIES
	 	 	14	 
	9.1 Generally
	 	 	14	 
	9.2 Application of Proceeds
	 	 	16	 
	9.3 Sales on Credit
	 	 	16	 
	9.4 Offtake Agreement
	 	 	16	 
	9.5 Further Provisions
	 	 	17	 
	 
	 	 	 	 
	SECTION 10. COLLATERAL AGENT
	 	 	17	 
	 
	 	 	 	 
	SECTION 11. CONTINUING SECURITY INTEREST
	 	 	17	 
	 
	 	 	 	 
	SECTION 12. STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM
	 	 	18	 
	 
	 	 	 	 
	SECTION 13. MISCELLANEOUS
	 	 	18	 
	 
	 	 	 	 
	SCHEDULE 5.1 — GENERAL INFORMATION
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 5.4 — FINANCING STATEMENTS
	 	 	 	 

 

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This PLEDGE AND SECURITY AGREEMENT, dated as of April 29, 2011 (as it may be amended,
restated, supplemented or otherwise modified from time to time, this “Agreement”), between DELEK US
HOLDINGS, INC., a Delaware corporation (“DUHI”), LION OIL COMPANY, an Arkansas corporation
(“Lion”), LION OIL TRADING & TRANSPORTATION, INC., an Arkansas corporation (“LOTT” and, together
with DUHI and Lion, the “Grantors”) and GOLDMAN SACHS LENDING PARTNERS LLC (“Goldman Sachs”), as
collateral agent for the Secured Parties (as herein defined) (in such capacity as collateral agent,
together with its successors and permitted assigns, the “Collateral Agent”).

RECITALS:

WHEREAS, reference is made to (i) that certain Reimbursement and Guaranty Agreement, dated as
of the date hereof (as it may be amended, restated, supplemented or otherwise modified from time to
time, the “Reimbursement Agreement”), by and among the Grantors and Goldman Sachs and (ii) the
Master Supply and Offtake Agreement, dated as of the date hereof (as it may be amended, restated,
supplemented or otherwise modified from time to time, the “Offtake Agreement”) among J. Aron &
Company (“Aron”), Lion and LOTT;

WHEREAS, in consideration of the extensions of credit and other accommodations of Goldman
Sachs as set forth in the Reimbursement Agreement and of Aron as set forth in the Offtake
Agreement, each Grantor has agreed to provide collateral security as set forth herein; and

NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, and for other good and valuable consideration the receipt and sufficiency of
which is hereby acknowledged, each Grantor and the Collateral Agent agree as follows:

SECTION 1. DEFINITIONS; GRANT OF SECURITY.

1.1 General Definitions. In this Agreement, the following terms shall have the following meanings:

“Agreement” shall have the meaning set forth in the preamble.

“April Shipment” means the shipment of approximately 550,000 net barrels of Arabian Light
crude oil from Saudi Arabian Oil Company to LOTT, owned by LOTT on the date hereof and expected to
be delivered to the Louisiana Offshore Oil Port on or about May 3, 2011.

“Aramco Agreement” means certain Crude Oil Sales Agreement, dated as of May 1, 2010, between
Saudi Arabian Oil Company and LOTT, as amended, amended and restated, supplemented or otherwise
modified.

“Aron” shall have the meaning set forth in the recitals.

“Assigned Agreements” shall mean all agreements and contracts to which Lion and/or LOTT is a
party covering the purchase, sale, distribution, loading, unloading, storing, shipping,
transshipping, manufacturing or processing of Inventory, including without limitation the Aramco
Agreement, but excluding the Offtake Agreement, as each such agreement may be amended, supplemented
or otherwise modified from time to time.

 

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“Cash Proceeds” shall have the meaning assigned in Section 9.5.

“Collateral” shall mean all of the personal property of the Grantors in which they grant a
security interest under Section 2.1, including all of their right, title and interest in, to and
under such personal property; provided, however, “Collateral” shall not include (a) any Excluded
Receivables or (b) any Proceeds of Inventory if such Proceeds are Excluded Receivables.

“Collateral
Account” shall mean the segregated, interest-bearing bank
account number ******** maintained at Citibank, N.A. by Goldman Sachs for the benefit of DUHI.

“Collateral Agent” shall have the meaning set forth in the preamble.

“Collateral Records” shall mean books, records, ledger cards, files, correspondence, customer
lists, supplier lists, blueprints, technical specifications, manuals, computer software and related
documentation, computer printouts, tapes, disks and other electronic storage media and related data
processing software and similar items that at any time evidence or contain information relating to
any of the Collateral or are otherwise necessary or helpful in the collection thereof or
realization thereupon.

“Collateral Support” shall mean all property (real or personal) assigned, hypothecated or
otherwise securing any Collateral and shall include any security agreement or other agreement
granting a lien or security interest in such real or personal property.

“Control” shall mean control within the meaning of Section 9-104 of the UCC.

“Documents” shall mean all “documents” (as defined in the UCC) now owned or hereafter acquired
by Lion or LOTT covering or relating to any Inventory, including all documents of title, bills of
lading (including Bill of Lading No. VELA03 2011411042 / Nomination key 41104 — 40 dated March 20,
2011 in RAS TANURA AND JUAYMAH TERMINALS, Saudi Arabia with respect to 550,275 Gross US BBLS of
Arabian Light crude shipped in and upon the Liberian ship called the VEGA STAR), dock warrants,
dock receipts, warehouse receipts, or orders for delivery of goods, and also any other document
which in the regular course of business or financing is treated as adequately evidencing that such
Grantor in possession of it is entitled to receive, hold and dispose of the document and the goods
it covers.

“DUHI” shall have the meaning set forth in the preamble.

“Event of Default” means an “Event of Default” under and as defined in the Reimbursement
Agreement or an “Event of Default” under and as defined in the Offtake Agreement.

“Excluded Receivables” means all Receivables and Receivables Records other than those
Receivables and Receivables Records arising from or relating to the Offtake Agreement under which
Aron is the Account Debtor.

“Goldman Sachs” shall have the meaning set forth in the preamble.

“GS Related Parties” shall have the meaning set forth in the Reimbursement Agreement, but
shall not include Aron.

 

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“Indemnitee” shall mean the Collateral Agent, and its and its Affiliates’ officers, partners,
directors, trustees, employees, agents.

“Insurance” shall mean all insurance policies covering any or all of the Collateral
(regardless of whether the Collateral Agent is the loss payee thereof).

“Inventory” shall mean all “inventory” (as defined in the UCC), now owned or hereafter
acquired by Lion and/or LOTT, wherever located, including without limitation (i) all hydrocarbons,
including but not limited to crude oil and any products refined, processed, recovered or obtained
therefrom, including but not limited to gasoline, jet fuel, diesel fuels, fuel oil blendstocks, and
other petroleum products of any kind or nature, in all stages of production from raw materials
through work-in-process to finished goods (all of the foregoing being collectively “hydrocarbon
inventory”), (ii) all hydrocarbon inventory located in vessels, tanks or pipeline systems,
including without limitation hydrocarbon inventory in the Liberian ship, VEGA STAR, and in the
LOOP LLC (Louisiana Offshore Oil Port), LOCAP, Shell Pipeline, Exxon Mobil Pipeline Company,
Magnolia Pipeline, Conoco Phillips, Nustar, Koch, El Dorado Pipeline, West Texas Gulf Pipeline,
Mid-Valley Pipeline, Enterprise Crude Pipeline LLC, Enterprise TE Products Pipeline Company LLC or
Magellan Midstream Partners, L.P. pipelines and (iii) any hydrocarbon inventory commingled with
other hydrocarbons and any resulting product or mass.

“Lien” shall mean, with respect to any property, any interest in such property securing an
obligation owed to, or a claim by, a Person other than the owner of the property, whether such
interest is based on jurisprudence, statute or contract, and including but not limited to the lien
or security interest arising from a mortgage, encumbrance, pledge, security agreement, conditional
sale or trust receipt or a lease, consignment or bailment for security purposes. For the purposes
of this Agreement, a Grantor shall be deemed to be the owner of any property which it has acquired
or holds subject to a conditional sale agreement, financing lease or other arrangement pursuant to
which title to the property has been retained by or vested in some other Person for security
purposes.

“Lion” shall have the meaning set forth in the preamble.

“LOTT” shall have the meaning set forth in the preamble.

“Offtake Agreement” shall have the meaning set forth in the recitals.

“Receivables” shall mean all rights to payment, whether or not earned by performance, for
Inventory sold or otherwise disposed of, including, without limitation all such rights constituting
or evidenced by any Account, Chattel Paper, Instrument or General Intangible, together with all of
Grantor’s rights, if any, in any goods or other property giving rise to such right to payment and
all Collateral Support and Supporting Obligations related thereto and all Receivables Records.

“Receivables Records” shall mean (i) all original copies of all documents, instruments or
other writings or electronic records or other Records evidencing the Receivables, (ii) all books,
correspondence, credit or other files, Records, ledger sheets or cards, invoices, and other papers
relating to Receivables, including, without limitation, all tapes, cards, computer tapes, computer
discs, computer runs, record keeping systems and other papers and documents
relating to the Receivables, whether in the possession or under the control of Lion or LOTT or
any computer bureau or agent from time to time acting for Lion or LOTT or otherwise, (iii) all
evidences of the filing of financing statements and the registration of other instruments in
connection therewith, and amendments, supplements or other modifications thereto, notices to other
creditors, secured parties or agents thereof, and certificates, acknowledgments, or other writings,
including, without limitation, lien search reports, from filing or other registration officers,
(iv) all credit information, reports and memoranda relating thereto and (v) all other written or
non-written forms of information related in any way to the foregoing or any Receivable.

 

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“Reimbursement Agreement” shall have the meaning set forth in the recitals.

“Secured Documents” shall mean the Reimbursement Agreement and the Offtake Agreement.

“Secured Obligations” shall have the meaning assigned in Section 3.1.

“Secured Parties” shall mean the GS Related Parties, Aron and the Collateral Agent.

“UCC” shall mean the Uniform Commercial Code as in effect from time to time in the State of
New York; provided, however, that in the event that, by reason of mandatory provisions of law, any
or all of the perfection or priority of, or remedies with respect to, any Collateral is governed by
the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of New
York, the term “UCC” shall mean the Uniform Commercial Code as enacted and in effect in such other
jurisdiction solely for purposes of the provisions hereof relating to such perfection, priority or
remedies.

“United States” shall mean the United States of America.

1.2 Definitions; Interpretation.

(i) In this Agreement, the following capitalized terms shall have the meaning given to
them in the UCC (and, if defined in more than one Article of the UCC, shall have the meaning
given in Article 9 thereof): Account, Account Debtor, Chattel Paper, General Intangibles,
Goods, Instrument, Inventory, Proceeds, Record, Supporting Obligations and Tangible Chattel
Paper.

(ii) All other capitalized terms used herein (including the preamble and recitals hereto)
and not otherwise defined herein shall have the meanings ascribed thereto in the Reimbursement
Agreement. The incorporation by reference of terms defined in the Reimbursement Agreement
shall survive any termination of the Reimbursement Agreement until this Agreement is terminated
as provided in Section 11 hereof. 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. All references herein to
provisions of the UCC shall include all successor provisions under any subsequent version or
amendment to any Article of the UCC.

 

4

 

SECTION 2. GRANT OF SECURITY.

2.1 Grant of Security. (a) Each of Lion and LOTT hereby grants to the Collateral Agent, for the benefit of the
Secured Parties, a security interest in and continuing lien on all of such Grantor’s right, title
and interest in, to and under the following, in each case whether now or hereafter existing or in
which such Grantor now has or hereafter acquires an interest and wherever the same may be located::

(i) the Assigned Agreements;

(ii) the Inventory;

(iii) all Documents relating to the Inventory;

(iv) all Receivables and Receivables Records, in each case arising from or relating to the
Offtake Agreement;

(v) Insurance;

(vi) all Collateral Records, Collateral Support and Supporting Obligations relating to any
of the foregoing; and

(vii) to the extent not otherwise included above, all Proceeds, products, accessions,
rents and profits of or in respect of any of the foregoing.

(b) Each of Lion and LOTT hereby grants to the Collateral Agent, for the benefit of the GS
Related Parties, a security interest in and continuing lien on all of such Grantor’s right, title
and interest in, to and under the following, in each case whether now or hereafter existing or in
which such Grantor now has or hereafter acquires an interest and wherever the same may be located:

(i) the Offtake Agreement;

(ii) all Receivables and Receivables Records arising from or relating to the Offtake Agreement
under which Aron is the Account Debtor;

(iii) all Collateral Records, Collateral Support and Supporting Obligations relating to any of
the foregoing; and

(iv) to the extent not otherwise included above, all Proceeds, products, accessions, rents and
profits of or in respect of any of the foregoing.

(c) DUHI hereby grants to the Collateral Agent, for the benefit of the Secured Parties, a
security interest in and continuing lien on all of such Grantor’s right, title and interest in, to
and under the Collateral Account, including the cash balance therein and all Proceeds thereof.

 

5

 

2.2 Certain Limited Exclusions. Notwithstanding anything herein to the contrary, in no event shall the Collateral include
or the security interest granted under Section 2.1 attach to (a) any Excluded Receivables, (b) any
Proceeds of Inventory if such Proceeds are Excluded Receivables, and (c) any Assigned Agreement to
which any Grantor is a party, and any of its rights or interest thereunder, if and to the extent
that a security interest in such Assigned Agreement is prohibited by or in violation of (i) any
law, rule or regulation applicable to such Grantor, or (ii) a term, provision or condition of any
such Assigned Agreement (unless such law, rule, regulation, term, provision or condition would be
rendered ineffective with respect to the creation of the security interest hereunder pursuant to
Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions) of any
relevant jurisdiction or any other applicable law (including the Bankruptcy Code) or principles of
equity); provided however that the Collateral shall include (and such security interest shall
attach) immediately at such time as the contractual or legal prohibition shall no longer be
applicable and to the extent severable, shall attach immediately to any portion of such Assigned
Agreement not subject to the prohibitions specified in (i) or (ii) above; provided further that
such exclusions shall not include any Proceeds of any such Assigned Agreement.

SECTION 3. SECURITY FOR OBLIGATIONS; GRANTORS REMAIN LIABLE.

3.1 Security for Obligations. This Agreement secures, and the Collateral is collateral security for, the prompt and
complete payment or performance in full when due, whether at stated maturity, by required
prepayment, declaration, acceleration, demand or otherwise (including the payment of amounts that
would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy
Code, 11 U.S.C. §362(a) (and any successor provision thereof)), of the following obligations (the
“Secured Obligations”): (i) in the case of Sections 2.1(a) and 2.1(c) all obligations of every
nature of Lion and/or LOTT from time to time under any Secured Document, whether for principal,
interest (including interest which, but for the filing of a petition in bankruptcy with respect to
such Grantor, would have accrued on any such obligation, whether or not a claim is allowed against
such Grantor for such interest in the related bankruptcy proceeding), fees, expenses,
indemnification or otherwise and (ii) in the case of Section 2.1(b), all Obligations (as defined in
the Reimbursement Agreement).

3.2 Continuing Liability Under Collateral. Notwithstanding anything herein to the contrary, (i) each Grantor shall remain liable for
all obligations under the Collateral and nothing contained herein is intended or shall be a
delegation of duties to the Collateral Agent or any other Secured Party, (ii) each Grantor shall
remain liable under each of the agreements included in the Collateral and to perform all of the
obligations undertaken by it thereunder all in accordance with and pursuant to the terms and
provisions thereof and neither the Collateral Agent nor any Secured Party shall have any obligation
or liability under any of such agreements by reason of or arising out of this Agreement or any
other document related thereto nor shall the Collateral Agent nor any Secured Party have any
obligation to make any inquiry as to the nature or sufficiency of any payment received by it or
have any obligation to take any action to collect or enforce any rights under any agreement
included in the Collateral, and (iii) the exercise by the Collateral Agent of any of its
rights hereunder shall not release any Grantor from any of its duties or obligations under the
contracts and agreements included in the Collateral.

 

6

 

3.3 Offtake Agreement.

Lion, LOTT and (by its acceptance hereof as indicated by its signature below) Aron agree that,
unless Goldman Sachs otherwise agrees, and notwithstanding any provision to the contrary contained
in the Offtake Agreement, the amount of the Receivable with respect to the April Shipment shall not
be reduced by credit, debit, offset, recoupment, counterclaim or any other manner whatsoever, other
than payment in cash held by the Collateral Agent as additional collateral hereunder or applied to
the purchase price payable by LOTT to Saudi Arabian Oil Company under the Aramco Agreement.

SECTION 4. CERTAIN PERFECTION REQUIREMENTS

4.1 Delivery Requirements. (i) With respect to all Inventory title of which is evidenced by a Document, (x) the
Grantors shall cause all originals of such Document to be delivered to the Collateral Agent,
duly indorsed or in blank, promptly (and in any event not later than 2 Business Days) after
acquiring such Document (provided that all such Documents relating to Inventory owned by LOTT
on the date hereof (including without limitation the April Shipment) shall be delivered to the
Collateral Agent, duly indorsed or in blank, on the date hereof), and (y) from time to time
thereafter, whenever such Inventory is in the possession of a bailee (unless such possession is
reasonably expected to occur for a period shorter than 3 Business Days) for the purpose of the
ultimate sale or exchange of such Inventory or loading, unloading, storing, shipping,
transshipping, manufacturing, processing, or otherwise dealing with such Inventory in a manner
preliminary to its sale or exchange, and such bailee has issued a Document for such Inventory,
the Grantors shall cause all originals of such Document to be delivered to the Collateral
Agent, duly indorsed or in blank, promptly (and in any event not later than 2 Business Days)
after Grantors receive such Document. From time to time upon the reasonable request of any
Grantor, the Collateral Agent shall release any Document in its possession to enable such
Grantor to effect any transaction referred to in clause (y) of the preceding sentence.
Notwithstanding the foregoing or anything in Section 5.3(ii) to the contrary, (i) Collateral
Agent acknowledges that no Documents are being delivered to the Collateral Agent on the date
hereof and that failure to so deliver any Document in and of itself shall not be a breach of
the terms of this Agreement and (ii) each of the Grantors and the Collateral Agent agree to use
commercially reasonably efforts to promptly after the date hereof establish arrangements
whereby any bills of lading with respect to any shipment of crude oil to any Grantor or its
Subsidiaries shall be delivered to, and held by, the Collateral Agent or its designee until
such time as the Collateral Agent shall release such bill of lading in accordance with the
preceding sentence.

(ii) With respect to any Instruments or Tangible Chattel Paper included in the Collateral,
each Grantor shall deliver to the Collateral Agent all such Instruments or Tangible Chattel
Paper to the Collateral Agent duly indorsed in blank within 2 Business Days of Grantor
acquiring rights therein.

4.2 Notice. Each Grantor shall promptly inform the Collateral Agent of its acquisition of any
Collateral for which any action is required by Section 4.1 hereof.

 

7

 

SECTION 5. REPRESENTATIONS AND WARRANTIES.

Each Grantor hereby represents and warrants, on the date hereof, that:

5.1 Grantor Information & Status.

(i) Schedule 5.1(A) & (B) (as such schedule may be amended or supplemented from time to
time) sets forth under the appropriate headings: (1) the full legal name of such Grantor, (2)
all trade names or other names under which such Grantor currently conducts business, (3) the
type of organization of such Grantor, (4) the jurisdiction of organization of such Grantor, (5)
its organizational identification number, if any, and (6) the jurisdiction where the chief
executive office or its sole place of business (or the principal residence if such Grantor is a
natural person) is located.

(ii) except as provided on Schedule 5.1(C), it has not changed its name, jurisdiction of
organization, chief executive office or sole place of business (or principal residence if such
Grantor is a natural person) or its corporate structure in any way (e.g., by merger,
consolidation, change in corporate form or otherwise) and has not done business under any other
name, in each case, within the past five (5) years;

(iii) such Grantor has been duly organized and is validly existing as an entity of the
type as set forth opposite such Grantor’s name on Schedule 5.1(A) solely under the laws of the
jurisdiction as set forth opposite such Grantor’s name on Schedule 5.1(A) and remains duly
existing as such. Such Grantor has not filed any certificates of dissolution or liquidation,
any certificates of domestication, transfer or continuance in any other jurisdiction;

(iv) no Grantor is a “transmitting utility” (as defined in Section 9-102(a)(80) of the
UCC); and

(v) no Grantor has performed any acts or is party to any agreements which might prevent
the Collateral Agent from enforcing any of the terms of this Agreement or which would limit the
Collateral Agent in any such enforcement.

5.2 Ownership of Collateral and Absence of Other Liens.

(i) it has good and merchantable title to the Collateral purported to be owned by it, free
and clear of any and all Liens, rights or claims of all other Persons, including, without
limitation, liens arising as a result of such Grantor becoming bound (as a result of merger or
otherwise) as debtor under a security agreement entered into by another Person; and it does not
hold any Inventory on consignment.

(ii) other than any financing statements filed in favor of the Collateral Agent, no
effective financing statement, fixture filing or other instrument similar in effect
under any applicable law covering all or any part of the Collateral is on file in any
filing or recording office Other than the Collateral Agent and any automatic control in favor
of the bank maintaining the Collateral Account, no Person is in Control of the Collateral
Account, other than Permitted Liens;

(iii) and no Inventory is in the possession of any Person (other than such Grantor)
asserting any claim thereto or security interest therein, other than under this Agreement and
the Secured Documents.

 

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5.3 Status of Security Interest.

(i) upon the filing of financing statements naming each Grantor as “debtor” and the
Collateral Agent as “secured party” and describing the Collateral in the filing offices set
forth opposite such Grantor’s name on Schedule 5.4 hereof (as such schedule may be amended or
supplemented from time to time), the security interest of the Collateral Agent in all
Collateral that can be perfected by the filing of a financing statement under the Uniform
Commercial Code as in effect in any jurisdiction will constitute a valid, perfected, first
priority Liens. The deposit account control agreement entered into on the date hereof among
the Collateral Agent, DUHI and the bank maintaining the Collateral Account is effective to
establish the Collateral Agent’s Control of the Collateral Account;

(ii) the Grantors have delivered or caused to be delivered to the Collateral Agent, duly
indorsed or in blank, all originals of Documents evidencing title to Inventory owned by Lion
and LOTT that is located on ships on the date hereof to the extent required under this
Agreement;

(iii) no authorization, consent, approval or other action by, and no notice to or filing
with, any Governmental Authority or regulatory body or any other Person is required for either
(i) the pledge or grant by any Grantor of the Liens purported to be created in favor of the
Collateral Agent hereunder or (ii) the exercise by Collateral Agent of any rights or remedies
in respect of any Collateral (whether specifically granted or created hereunder or created or
provided for by applicable law), except for the filings contemplated by clause (a) above; and

(iv) each Grantor is in compliance with its obligations under Section 4 hereof.

5.4 Goods & Receivables.

(i) each Receivable (a) is and will be the legal, valid and binding obligation of the
Account Debtor in respect thereof, representing an unsatisfied obligation of such Account
Debtor, (b) is and will be enforceable in accordance with its terms, (c) is not and will not be
subject to any credits, rights of recoupment, setoffs, defenses, taxes, counterclaims (except
with respect to refunds, returns and allowances in the ordinary course of business with respect
to damaged merchandise, and except as provided in the Offtake Agreement) and (d) is and will be
in compliance with all applicable laws, whether federal, state, local or foreign;

(ii) no Goods now or hereafter produced by any Grantor and included in the Collateral have
been or will be produced in violation of the requirements of the Fair Labor Standards Act, as
amended, or the rules and regulations promulgated thereunder;

(iii) all of Lion’s and LOTT’s Inventory is in good condition, is free from damage caused
by casualty and is located at (i) Lion’s refinery in El Dorado, Arkansas, (ii) in pipelines or
tanks connected, directly or indirectly to such refinery, or (iii) in-transit to such
pipelines, tanks or refinery in the ordinary course of business.

 

9

 

SECTION 6. COVENANTS AND AGREEMENTS.

Each Grantor hereby covenants and agrees that:

6.1 Grantor Information & Status.

(i) Without limiting any prohibitions or restrictions on mergers or other transactions set
forth in the Reimbursement Agreement, it shall not change such Grantor’s name, identity,
corporate structure (e.g. by merger, consolidation, change in corporate form or otherwise),
chief executive office, type of organization or jurisdiction of organization or establish any
trade names unless it shall have (a) notified the Collateral Agent in writing at least thirty
(30) days prior to any such change or establishment, identifying such new proposed name,
identity, corporate structure, chief executive office, jurisdiction of organization or trade
name and providing such other information in connection therewith as the Collateral Agent may
reasonably request and (b) taken all actions necessary or advisable to maintain the continuous
validity, perfection and the same or better priority of the Collateral Agent’s security
interest in the Collateral granted or intended to be granted and agreed to hereby, which in the
case of any merger or other change in corporate structure shall include, without limitation,
executing and delivering to the Collateral Agent a completed Pledge Supplement together with
all Supplements to Schedules thereto, upon completion of such merger or other change in
corporate structure confirming the grant of the security interest hereunder.

6.2 Ownership of Collateral and Absence of Other Liens.

(i) except for the security interest created by this Agreement, it shall not create or
suffer to exist any Lien upon or with respect to any of the Collateral, other than Permitted
Liens, and such Grantor shall defend the Collateral against all Persons at any time claiming
any interest therein; and

(ii) upon such Grantor or any officer of such Grantor obtaining knowledge thereof, it
shall promptly notify the Collateral Agent in writing of any event that may have a Material
Adverse Effect on the value of the Collateral or any portion thereof, the ability of any
Grantor or the Collateral Agent to dispose of the Collateral or any portion thereof, or the
rights and remedies of the Collateral Agent in relation thereto, including, without limitation,
the levy of any legal process against the Collateral or any portion thereof.

6.3 Status of Security Interest. Each Grantor shall maintain the security interest of the Collateral Agent hereunder in all
Collateral as valid, perfected, first priority Liens.

6.4 Goods & Receivables.

(i) it shall not deliver any Document evidencing any Inventory to any Person other than
the issuer of such Document to claim the Goods evidenced thereby or the Collateral Agent or as
permitted by Section 4.1; it shall not permit Inventory owned by it to be located at any
location except for the locations referred to in Section 5.4(iii); and it shall not take by
consignment material quantities of Goods of the same type as the Inventory;

(ii) it shall preserve and keep the Inventory owned by it at all times in good condition
in all material respects so that its value and the security interest created hereby shall at no
time become materially impaired; and it shall not do or permit anything to be done to the
Collateral that may reasonably be expected to violate the terms of any insurance covering the
Collateral or any part thereof;

 

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(iii) it shall keep and maintain at its own cost and expense satisfactory and complete
records of the Receivables, including, but not limited to, the originals of all documentation
with respect to all Receivables and records of all payments received and all credits granted on
the Receivables, all merchandise returned and all other dealings therewith;

(iv) other than in the ordinary course of business (i) it shall not amend, modify,
terminate or waive any provision of any Receivable in any manner which could reasonably be
expected to have a material adverse effect on the value of such Receivable; (ii) following and
during the continuation of an Event of Default, such Grantor shall not (w) grant any extension
or renewal of the time of payment of any Receivable, (x) compromise or settle any dispute,
claim or legal proceeding with respect to any Receivable for less than the total unpaid balance
thereof, (y) release, wholly or partially, any Person liable for the payment thereof, or (z)
allow any credit or discount thereon;

(v) it shall observe and comply in all material respects with all laws, statutes,
ordinances, rules, regulations, judgments, decrees, franchises, permits, licenses, certificates
and requirements of all federal, state, parish, county, municipal and other governmental
agencies, departments, commissions, boards, courts and authorities applicable to the Collateral
owned by it; and it shall pay prior to delinquency all taxes, levies, license fees,
assessments, and other impositions levied on the Collateral or any part thereof, unless
properly disputed and pursued in the appropriate administrative or judicial forum;

(vi) at any time following the occurrence and during the continuation of an Event of
Default, the Collateral Agent may: (i) direct the Account Debtors under any Receivables to
make payment of all amounts due or to become due to such Grantor thereunder directly to the
Collateral Agent; (ii) notify, or require any Grantor to notify, each Person maintaining a
lockbox or similar arrangement to which Account Debtors under any Receivables have been
directed to make payment to remit all amounts representing collections on checks and other
payment items from time to time sent to or deposited in such lockbox or other arrangement
directly to the Collateral Agent; and (iii) enforce, at the expense of such Grantor, collection
of any such Receivables, in the same manner and to the same extent as such Grantor might have
done. If the Collateral Agent notifies any Grantor
that it has elected to collect the Receivables in accordance with the preceding sentence,
any payments of Receivables received by such Grantor shall be forthwith (and in any event
within 2 Business Days) deposited by such Grantor in the exact form received, duly indorsed by
such Grantor to the Collateral Agent if required, in an account notified by the Collateral
Agent to such Grantor to be maintained under the sole dominion and control of the Collateral
Agent, and until so turned over, all amounts and proceeds (including checks and other
instruments) received by such Grantor in respect of the Receivables, any Supporting Obligation
or Collateral Support shall be received in trust for the benefit of the Collateral Agent
hereunder and shall be segregated from other funds of such Grantor and such Grantor shall not
adjust, settle or compromise the amount or payment of any Receivable, or release wholly or
partly any Account Debtor or obligor thereof, or allow any credit or discount thereon; and

(vii) the Grantors shall not request or cause or permit to be issued any Document
evidencing title to Inventory (other than Vega Star bills of lading) unless requested by
Collateral Agent or otherwise in the ordinary course of business and consistent with past
practice.

 

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6.5 Supply Paths for Foreign and Domestic Offshore Crudes.

Lion and LOTT shall use commercially reasonable efforts to continue to use the supply paths to
Lion’s refinery in El Dorado, Arkansas that they have heretofore described to the Collateral Agent
for substantially all of the Inventory; provided that upon Lion or LOTT becoming aware of,
or determining to make, any material changes to the use of such supply paths, Lion or LOTT shall,
as applicable, promptly notify the Collateral Agent thereof.

SECTION 7. ACCESS; RIGHT OF INSPECTION AND FURTHER ASSURANCES.

7.1 Access; Right of Inspection; Information.

The Collateral Agent shall at all times have full and free access during normal business hours
to all the books, correspondence and records of each Grantor, and the Collateral Agent and its
representatives may examine the same, take extracts therefrom and make photocopies thereof, and
each Grantor agrees to render to the Collateral Agent, at such Grantor’s cost and expense, such
clerical and other assistance as may be reasonably requested with regard thereto. The Collateral
Agent and its representatives shall at all times also have the right to enter any premises of each
Grantor and inspect any property of each Grantor where any of the Collateral of such Grantor
granted pursuant to this Agreement is located for the purpose of inspecting the same, observing its
use or otherwise protecting its interests therein. The Grantors shall furnish information
concerning the Collateral at such reasonable times and as often as the Collateral Agent may
reasonably request, including without limitation schedules describing the Inventory included in the
Collateral, in form satisfactory to the Collateral Agent, by location (showing Inventory in
transit, and Inventory in the possession of third parties), by class (raw material, work-in-process
and finished goods), by product type, and by volume on hand, and reconciliations between the
amounts shown in the Grantors’ general ledgers and financial statements and such schedules.

7.2 Further Assurances.

(i) Each Grantor agrees that from time to time, at the expense of such Grantor, that it
shall promptly execute and deliver all further instruments and documents, and
take all further action, that may be necessary or desirable, or that the Collateral Agent
may reasonably request, in order to create and/or maintain the validity, perfection or priority
of and protect any security interest granted or purported to be granted hereby or to enable the
Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any
Collateral. Without limiting the generality of the foregoing, each Grantor shall:

(i) file such financing or continuation statements, or amendments thereto, record
security interests in Intellectual Property and execute and deliver such other agreements,
instruments, endorsements, powers of attorney or notices, as may be necessary or desirable,
or as the Collateral Agent may reasonably request, in order to effect, reflect, perfect and
preserve the security interests granted or purported to be granted hereby;

(ii) at any reasonable time, upon request by the Collateral Agent, assemble the
Collateral and allow inspection of the Collateral by the Collateral Agent, or persons
designated by the Collateral Agent;

(iii) at the Collateral Agent’s request, appear in and defend any action or proceeding
that may affect such Grantor’s title to or the Collateral Agent’s security interest in all
or any part of the Collateral; and

 

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(iv) furnish the Collateral Agent with such information regarding the Collateral,
including, without limitation, the location thereof, as the Collateral Agent may reasonably
request from time to time.

(ii) Each Grantor hereby authorizes the Collateral Agent to file a Record or Records,
including, without limitation, financing or continuation statements, and amendments and
supplements to any of the foregoing, in any jurisdictions and with any filing offices as the
Collateral Agent may determine, in its sole discretion, are necessary or advisable to perfect
or otherwise protect the security interest granted to the Collateral Agent herein. Such
financing statements may describe the Collateral in the same manner as described herein or may
contain an indication or description of collateral that describes such property in any other
manner as the Collateral Agent may determine, in its sole discretion, is necessary, advisable
or prudent to ensure the perfection of the security interest in the Collateral granted to the
Collateral Agent herein. Each Grantor shall furnish to the Collateral Agent from time to time
statements and schedules further identifying and describing the Collateral and such other
reports in connection with the Collateral as the Collateral Agent may reasonably request, all
in reasonable detail.

SECTION 8. COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT.

8.1 Power of Attorney. Each Grantor hereby irrevocably appoints the Collateral Agent (such appointment being
coupled with an interest) as such Grantor’s attorney-in-fact, with full authority in the place and
stead of such Grantor and in the name of such Grantor, the Collateral Agent or otherwise, from time
to time in the Collateral Agent’s discretion to take any action and to execute any instrument that
the Collateral Agent may deem reasonably necessary or advisable to accomplish the purposes of this
Agreement, including, without limitation, the following:

(i) upon the occurrence and during the continuance of any Event of Default, to obtain and
adjust insurance required to be maintained by such Grantor or paid to the Collateral Agent
pursuant to the Reimbursement Agreement;

(ii) upon the occurrence and during the continuance of any Event of Default, to ask for,
demand, collect, sue for, recover, compound, receive and give acquittance and receipts for
moneys due and to become due under or in respect of any of the Collateral;

(iii) upon the occurrence and during the continuance of any Event of Default, to receive,
endorse and collect any drafts or other instruments, documents and chattel paper in connection
with clause (b) above;

(iv) upon the occurrence and during the continuance of any Event of Default, to file any
claims or take any action or institute any proceedings that the Collateral Agent may deem
necessary or desirable for the collection of any of the Collateral or otherwise to enforce the
rights of the Collateral Agent with respect to any of the Collateral;

(v) to prepare and file any UCC financing statements against such Grantor as debtor;

 

13

 

(vi) to take or cause to be taken all actions necessary to perform or comply or cause
performance or compliance with the terms of this Agreement, including, without limitation,
access to pay or discharge taxes or Liens (other than Permitted Liens) levied or placed upon or
threatened against the Collateral, the legality or validity thereof and the amounts necessary
to discharge the same to be determined by the Collateral Agent in its sole discretion, any such
payments made by the Collateral Agent to become obligations of such Grantor to the Collateral
Agent, due and payable immediately without demand; and

(vii) generally to sell, transfer, lease, license, pledge, make any agreement with respect
to or otherwise deal with any of the Collateral as fully and completely as though the
Collateral Agent were the absolute owner thereof for all purposes, and to do, at the Collateral
Agent’s option and such Grantor’s expense, at any time or from time to time, all acts and
things that the Collateral Agent deems reasonably necessary to protect, preserve or realize
upon the Collateral and the Collateral Agent’s security interest therein in order to effect the
intent of this Agreement, all as fully and effectively as such Grantor might do.

8.2 No Duty on the Part of Collateral Agent or Secured Parties

(i) . The powers conferred on the Collateral Agent hereunder are solely to protect the
interests of the Secured Parties in the Collateral and shall not impose any duty upon the
Collateral Agent or any other Secured Party to exercise any such powers. The Collateral Agent
and the other Secured Parties shall be accountable only for amounts that they actually receive
as a result of the exercise of such powers, and neither they nor any of their officers,
directors, employees or agents shall be responsible to any Grantor for any act or failure to
act hereunder, except for their own gross negligence or willful misconduct.

SECTION 9. REMEDIES.

9.1 Generally.

(i) If any Event of Default shall have occurred and be continuing, the Collateral Agent
may exercise in respect of the Collateral, in addition to all other rights and remedies
provided for herein or otherwise available to it at law or in equity, all the rights and
remedies of the Collateral Agent on default under the UCC (whether or not the UCC applies to
the affected Collateral) to collect, enforce or satisfy any Secured Obligations then owing,
whether by acceleration or otherwise, and also may pursue any of the following separately,
successively or simultaneously:

(i) require any Grantor to, and each Grantor hereby agrees that it shall at its
expense and promptly upon request of the Collateral Agent forthwith, assemble all or part
of the Collateral as directed by the Collateral Agent and make it available to the
Collateral Agent at a place to be designated by the Collateral Agent that is reasonably
convenient to both parties;

(ii) enter onto the property where any Collateral is located and take possession
thereof with or without judicial process;

(iii) prior to the disposition of the Collateral, store, process, repair or
recondition the Collateral or otherwise prepare the Collateral for disposition in any
manner to the extent the Collateral Agent deems appropriate; and

 

14

 

(iv) without notice except as specified below or under the UCC, sell, assign, lease,
license (on an exclusive or nonexclusive basis) or otherwise dispose of the Collateral or
any part thereof in one or more parcels at public or private sale, at any of the Collateral
Agent’s offices or elsewhere, for cash, on credit or for future delivery, at such time or
times and at such price or prices and upon such other terms as the Collateral Agent may
deem commercially reasonable.

(ii) The Collateral Agent or any other Secured Party may be the purchaser of any or all of
the Collateral at any public or private (to the extent to the portion of the Collateral being
privately sold is of a kind that is customarily sold on a recognized market or the subject of
widely distributed standard price quotations) sale in accordance with the UCC and the
Collateral Agent, as collateral agent for and representative of the Secured Parties, shall be
entitled, for the purpose of bidding and making settlement or payment of the purchase price for
all or any portion of the Collateral sold at any such sale made in accordance with the UCC, to
use and apply any of the Secured Obligations as a credit on account of the purchase price for
any Collateral payable by the Collateral Agent at such sale. Each purchaser at any such sale
shall hold the property sold absolutely free from any claim or right on the part of any
Grantor, and each Grantor hereby waives (to the extent permitted by applicable law) all rights
of redemption, stay and/or appraisal which it now has or may at any time in the future have
under any rule of law or statute now existing or hereafter enacted. Each Grantor agrees that,
to the extent notice of sale shall be required by law, at least ten (10) days notice to such
Grantor of the time and place of any public sale or the time after which any private sale is to
be made shall constitute reasonable notification. The Collateral Agent shall not be obligated
to make any sale of Collateral regardless of notice of sale having been given. The Collateral
Agent may adjourn any public or private sale from time to time by announcement at the time and
place fixed therefor, and such sale may, without further notice, be made at the time and place
to which it was so adjourned. Each Grantor agrees that it would not be commercially
unreasonable for the Collateral Agent to dispose of the Collateral or any portion thereof by
using Internet sites that provide for the auction of assets of the types included in the
Collateral or that have the reasonable capability of doing so, or that match
buyers and sellers of assets. Each Grantor hereby waives any claims against the
Collateral Agent arising by reason of the fact that the price at which any Collateral may have
been sold at such a private sale was less than the price which might have been obtained at a
public sale, even if the Collateral Agent accepts the first offer received and does not offer
such Collateral to more than one offeree. If the proceeds of any sale or other disposition of
the Collateral are insufficient to pay all the Secured Obligations, Grantors shall be liable
for the deficiency and the fees of any attorneys employed by the Collateral Agent to collect
such deficiency. Each Grantor further agrees that a breach of any of the covenants contained
in this Section will cause irreparable injury to the Collateral Agent, that the Collateral
Agent has no adequate remedy at law in respect of such breach and, as a consequence, that each
and every covenant contained in this Section shall be specifically enforceable against such
Grantor, and such Grantor hereby waives and agrees not to assert any defenses against an action
for specific performance of such covenants except for a defense that no default has occurred
giving rise to the Secured Obligations becoming due and payable prior to their stated
maturities. Nothing in this Section shall in any way limit the rights of the Collateral Agent
hereunder.

(iii) The Collateral Agent may sell the Collateral without giving any warranties as to the
Collateral. The Collateral Agent may specifically disclaim or modify any warranties of title
or the like. This procedure will not be considered to adversely affect the commercial
reasonableness of any sale of the Collateral.

(iv) The Collateral Agent shall have no obligation to marshal any of the Collateral.

 

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9.2 Application of Proceeds. Except as expressly provided elsewhere in this Agreement, all proceeds received by the
Collateral Agent in respect of any sale of, any collection from, or other realization upon all or
any part of the Collateral shall be applied in full or in part by the Collateral Agent against, the
Secured Obligations in the following order of priority: first, to the payment of all costs
and expenses of such sale, collection or other realization, including reasonable compensation to
the Collateral Agent and its agents and counsel, and all other expenses, liabilities and advances
made or incurred by the Collateral Agent in connection therewith, and all amounts for which the
Collateral Agent is entitled to indemnification hereunder (in its capacity as the Collateral Agent
and not in its individual capacity) and all advances made by the Collateral Agent hereunder for the
account of the applicable Grantor, and to the payment of all costs and expenses paid or incurred by
the Collateral Agent in connection with the exercise of any right or remedy hereunder or under the
Reimbursement Agreement, all in accordance with the terms hereof or thereof; second, to the
extent of any excess of such proceeds, subject to Section 9.4, to the payment of all other Secured
Obligations for the ratable benefit of the Secured Parties other than the Collateral Agent; and
third, to the extent of any excess of such proceeds, to the payment to or upon the order of
the applicable Grantor or to whosoever may be lawfully entitled to receive the same or as a court
of competent jurisdiction may direct.

9.3 Sales on Credit. If Collateral Agent sells any of the Collateral upon credit, Grantor will be credited only
with payments actually made by purchaser and received by Collateral Agent and applied to
indebtedness of the purchaser. In the event the purchaser fails to pay for the Collateral,
Collateral Agent may resell the Collateral and Grantor shall be credited with proceeds of the sale.

9.4 Offtake Agreement. By reason of the fact that the Collateral consisting of rights under the Offtake Agreement
secure Secured Obligations owing to the GS Related Parties but not Secured Obligations owing to
Aron, the benefits of the Receivables arising under the Offtake Agreement shall (unless otherwise
agreed by Goldman Sachs and Aron) be shared by them ratably in connection with the exercise of any
remedies hereunder and under the Offtake Agreement by determining their respective ratable shares
of such Receivables (calculated as if such Receivables did secure all of the Secured Obligations
owing to them) and applying the share of the Proceeds of such Receivables allocable to the GS
Related Parties under clause second of Section 9.2, it being acknowledged and agreed that
Aron, as the Account Debtor with respect to such Receivables, may derive its corresponding benefit
by exercising its right of set-off under the Offtake Agreement against an amount up to but not
exceeding its ratable share (calculated as aforesaid) of such Receivables (calculated as
aforesaid). If any Event of Default shall have occurred and be continuing, the Collateral Agent
may apply the balance from the Collateral Account or instruct the bank at which the Collateral
Account is maintained to pay the balance of the Collateral Account to or for the benefit of the
Collateral Agent.

 

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9.5 Further Provisions. The Collateral Agent, instead of exercising the power of sale herein conferred upon it, may
proceed by a suit or suits to foreclose the security interest created hereby and sell the
Collateral or any portion thereof under a judgment of a court or courts of competent jurisdiction.
For purposes of Louisiana executory process procedures, each Grantor acknowledges the Secured
Obligations and does hereby confess judgment in favor of the Collateral Agent for the full amount
of the Secured Obligations. Each Grantor agrees that upon the occurrence of an Event of Default
the Collateral Agent may cause the Collateral to be seized and sold under executory or ordinary
process, at the Collateral Agent’s sole option, without appraisement, appraisement being hereby
expressly waived, as an entirety or in parcels as the Collateral Agent may determine, to the
highest bidder for cash, and otherwise exercise the rights, powers and remedies afforded herein and
under applicable Louisiana law. Any and all declarations of fact made by authentic act before a
Notary Public in the presence of two witnesses by a person declaring that such facts lie within his
knowledge shall constitute authentic evidence of such facts for the purpose of executory process.
Each Grantor hereby waives in favor of the Collateral Agent: (a) the benefit of appraisement as
provided in Louisiana Code of Civil Procedure Articles 2332, 2336, 2723 and 2724, and all other
laws conferring the same; (b) the demand and three days delay accorded by Louisiana Code of Civil
Procedure Article 2721; (c) the notice of seizure required by Louisiana Code of Civil Procedure
Articles 2293 and 2721; (d) the three days delay provided by Louisiana Code of Civil Procedure
Articles 2331 and 2722; and (e) the benefit of the other provisions of Louisiana Code of Civil
Procedure Articles 2331, 2722 and 2723, not specifically mentioned above. In the event the
Collateral or any part thereof is seized as an incident to an action for the recognition or
enforcement of this Security Agreement by executory process, ordinary process, sequestration, writ
of fieri facias, or otherwise, each Grantor and the Collateral Agent agree that the court issuing
any such order shall, if petitioned for by the Collateral Agent, direct the applicable sheriff to
appoint as a keeper of the Collateral, the Collateral Agent or any agent designated by the
Collateral Agent or any person named by the Collateral Agent at the time such seizure is effected.
This designation is pursuant to Louisiana Revised Statutes 9:5136-9:5140.2 and the Collateral Agent
shall be entitled to all the rights and benefits afforded thereunder as the same may be amended.
It is hereby agreed that the keeper shall be entitled to receive as
compensation, in excess of its costs and expenses incurred in the administration or
preservation of the Collateral, an amount equal to one thousand ($1,000.00) dollars per day,
payable on a weekly basis. The designation of keeper made herein shall not be deemed to require
the Collateral Agent to provoke the appointment of such a keeper.

SECTION 10. COLLATERAL AGENT.

The Collateral Agent has been appointed by the Secured Parties to act as Collateral Agent
hereunder by their acceptance of the benefits hereof. The Collateral Agent shall be obligated, and
shall have the right hereunder, to make demands, to give notices, to exercise or refrain from
exercising any rights, and to take or refrain from taking any action (including, without
limitation, the release or substitution of Collateral), solely in accordance with this Agreement.
It is acknowledged and agreed by all parties hereto that the Collateral Agent may release
Collateral from the Collateral Account in accordance with Section 2.6 of the Reimbursement
Agreement.

SECTION 11. CONTINUING SECURITY INTEREST.

This Agreement shall create a continuing security interest in the Collateral and shall be
binding upon each Grantor, its successors and assigns, and inure, together with the rights and
remedies of the Collateral Agent hereunder, to the benefit of the Collateral Agent and its
successors, transferees and assigns. Upon the payment in full of all Secured Obligations owing to
all Secured Parties other than Aron and the cancellation or expiration of the Letters of Credit,
the security interest granted hereby shall automatically terminate hereunder and of record and all
rights to the Collateral granted or arising hereunder shall revert to the Grantors; provided that
if at such time a “Default” or “Event of Default” shall have occurred and be continuing under the
Offtake Agreement, such termination hereof shall not occur until the payment in full of all Secured
Obligations owing to Aron and the termination of the Offtake Agreement. Upon any such termination
the Collateral Agent shall, at the Grantors’ expense, execute and deliver to the Grantors or
otherwise authorize the filing of such documents as the Grantors shall reasonably request,
including financing statement amendments to evidence such termination. Upon any disposition of
Inventory to Aron or any other Person in accordance with the Offtake Agreement, the Liens granted
herein on such Inventory (but not on the Proceeds thereof) shall be deemed to be automatically
released with no further action on the part of any Person. The Collateral Agent shall, at the
applicable Grantor’s expense, execute and deliver or otherwise authorize the filing of such
documents as such Grantor shall reasonably request, in form and substance reasonably satisfactory
to the Collateral Agent, including financing statement amendments to evidence such release.
Nothing herein shall diminish or otherwise affect the rights of Aron under the Offtake Agreement or
any other agreement or instrument executed in connection therewith (including the rights of Aron
with respect to the security interest in certain collateral granted under Section 17.2 of the
Offtake Agreement, which security interest shall continue notwithstanding any termination of this
Agreement).

 

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SECTION 12. STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM.

The powers conferred on the Collateral Agent hereunder are solely to protect its interest in
the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the
exercise of reasonable care in the custody of any Collateral in its possession and the accounting
for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any
Collateral or as to the taking of any necessary steps to preserve rights against prior
parties or any other rights pertaining to any Collateral. The Collateral Agent shall be
deemed to have exercised reasonable care in the custody and preservation of Collateral in its
possession if such Collateral is accorded treatment substantially equal to that which the
Collateral Agent accords its own property. Neither the Collateral Agent nor any of its directors,
officers, employees or agents shall be liable for failure to demand, collect or realize upon all or
any part of the Collateral or for any delay in doing so or shall be under any obligation to sell or
otherwise dispose of any Collateral upon the request of any Grantor or otherwise. If any Grantor
fails to perform any agreement contained herein, the Collateral Agent may itself perform, or cause
performance of, such agreement, and the expenses of the Collateral Agent incurred in connection
therewith shall be payable by each Grantor under Section 10.2 of the Reimbursement Agreement.

SECTION 13. MISCELLANEOUS.

Any notice required or permitted to be given under this Agreement shall be given in accordance
with Section 9.1 of the Reimbursement Agreement (and for this purpose, the address for the
Collateral Agent shall be deemed to be the same address as Goldman Sachs). No failure or delay on
the part of the Collateral Agent in the exercise of any power, right or privilege hereunder or
under any other Secured 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. All rights and remedies existing under this Agreement and the other Secured
Documents are cumulative to, and not exclusive of, any rights or remedies otherwise available. In
case any provision in or obligation under this Agreement 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. 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 breach of such first covenant if such action is taken. This
Agreement shall be binding upon and inure to the benefit of the Collateral Agent and the Grantors
and their respective successors and assigns. No Grantor shall, without the prior written consent
of the Collateral Agent given in accordance with the Reimbursement Agreement, assign any right,
duty or obligation hereunder. This Agreement and the other Secured Documents embody the entire
agreement and understanding between the Grantors and the Collateral Agent and supersede all prior
agreements and understandings between such parties relating to the subject matter hereof and
thereof. Accordingly, the Secured Documents may not be contradicted by evidence of prior,
contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral
agreements between the parties. This Agreement may be executed in one or more counterparts and by
different parties hereto in separate 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; signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to the same document.

 

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THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND ALL CLAIMS AND
CONTROVERSIES ARISING OUT OF THE SUBJECT MATTER HEREOF WHETHER SOUNDING IN CONTRACT LAW, TORT LAW
OR OTHERWISE SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PROVISIONS THAT WOULD RESULT IN THE
APPLICATION OF ANY OTHER LAW
(OTHER THAN ANY MANDATORY PROVISIONS OF THE UCC RELATING TO THE LAW GOVERNING PERFECTION AND
THE EFFECT OF PERFECTION OF THE SECURITY INTEREST).

THE PROVISIONS OF THE CREDIT AGREEMENT UNDER THE HEADINGS “CONSENT TO JURISDICTION” AND
“WAIVER OF JURY TRIAL” ARE INCORPORATED HEREIN BY THIS REFERENCE AND SUCH INCORPORATION SHALL
SURVIVE ANY TERMINATION OF THE CREDIT AGREEMENT.

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

	 	 	 	 	 
	 	DELEK US HOLDINGS, INC.,

as Grantor

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

19

 

	 	 	 	 	 
	 	LION OIL COMPANY,

as Grantor

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	LION OIL TRADING & TRANSPORTATION, INC.,

as Grantor

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	GOLDMAN SACHS LENDING PARTNERS LLC,

as Collateral Agent

 	 
	 	By:  	
 	 
	 	 	Title: Authorized Signatory 	 
	 	 	 	 
	 

	 	 	 	 	 	 	 
	Accepted:	 	 
	 
	 	 	 	 	 	 
	GOLDMAN SACHS LENDING PARTNERS LLC,

in its individual capacity	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Title:
	 	Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	J. ARON & COMPANY	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Title:
	 	Authorized Signatory	 	 

 

 

 

SCHEDULE 5.1

TO PLEDGE AND SECURITY AGREEMENT

GENERAL INFORMATION

	(A)	 	Full Legal Name, Type of Organization, Jurisdiction of Organization, Chief Executive
Office/Sole Place of Business (or Residence if Grantor is a Natural Person) and Organizational
Identification Number of each Grantor:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Chief Executive	 	 
	 	 	 	 	 	 	Office/Sole Place of	 	 
	 	 	 	 	 	 	Business (or	 	 
	Full Legal	 	Type of	 	Jurisdiction of	 	Residence if Grantor	 	 
	Name	 	Organization	 	Organization	 	is a Natural Person)	 	Organization I.D.#
	 

	 	 
	 	 
	 	 
	 	 

	(B)	 	Other Names (including any Trade Name or Fictitious Business Name) under which each Grantor
currently conducts business:

	 	 	 
	Full Legal Name	 	Trade Name or Fictitious Business Name
	 

	 	 

	(C)	 	Changes in Name, Jurisdiction of Organization, Chief Executive Office or Sole Place of
Business (or Principal Residence if Grantor is a Natural Person) and Corporate Structure
within past five (5) years:

	 	 	 	 	 
	Grantor	 	Date of Change	 	Description of Change
	 

	 	 
	 	 

SCHEDULE 5.1-1

 

 

 

SCHEDULE 5.4 TO

PLEDGE AND SECURITY AGREEMENT

FINANCING STATEMENTS:

	 	 	 
	Grantor	 	Filing Jurisdiction(s)
	 
	 	 
	9473705.2
	 	 
	 
	 	 
	94757251.1
	 	 

SCHEDULE 4.7.1

 

 

 

EXHIBIT D

LION OIL TRADING & TRANSPORTATION, INC.

INCUMBENCY CERTIFICATE

The undersigned, being the Chief Financial Officer of LION OIL TRADING & TRANSPORTATION, INC., an
Arkansas corporation (“LOTT”), hereby certifies that:

(1) [S]He is the Chief Financial Officer of LOTT; and

(2) Attached hereto as Exhibit A are the names of the authorized signatories of LOTT, holding
on the date hereof the titles set forth opposite their names, each of whom is authorized to sign
all documents on behalf of LOTT in connection with the Reimbursement and Guaranty Agreement by and
among LOTT, Delek US Holdings, Inc., Lion Oil Company and Goldman Sachs Lending Partners LLC dated
as of April [_____], 2011.

IN WITNESS WHEREOF, the undersigned has executed this Certificate on behalf of Lion Oil Trading &
Transportation, Inc. as of this [_____] day of April, 2011.

	 	 	 	 	 
	 

	 	 

Name: [                    ]
	 	 
	 

	 	Title: Chief Financial Officer	 	 

The undersigned, being the Chief Executive Officer of Lion Oil Trading & Transportation, Inc.,
hereby certifies that [                                        ] is on this day the Chief Financial Officer of Lion
Oil Trading & Transportation, Inc., and that the signature above is his [her] genuine signature.

DATED this [ 1 day of April, 2011.

	 	 	 	 	 
	 

	 	 

Name: [                    ]
	 	 
	 

	 	Title: Chief Executive Officer	 	 

 

 

 

Exhibit A

EXHIBIT A

	 	 	 	 	 
	Name	 	Title	 	Signature
	 
	[                                        ]

	 	Chief Executive Officer	 	 
	 

	 	 	 	 
	[                                        ]

	 	[                                        ]	 	 
	 

	 	 	 	 
	[                                        ]

	 	[                                        ]	 	 
	 

	 	 	 	 
	[                                        ]

	 	[                                        ]	 	 
	 

	 	 	 	 
	[                                        ]

	 	Chief Financial Officer	 	 
	 

	 	 	 	 

Form of Solvency Certificate

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00192-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00192-of-00352.parquet"}]]