Document:

exv10w71

Exhibit
10.71

MANAGEMENT EMPLOYMENT AGREEMENT

     This Agreement is entered into between Michael Oster (“Manager”) and Alon USA GP, LLC, a
Delaware corporation (“Employer” or “Company”) on October 30, 2008, who, in return for the mutual
promises set forth herein, agree as follows:

     1. Position/Term. (a) The term of the Manager’s employment hereunder shall be deemed to
have commenced as of January 1, 2003.

          (b) Throughout the term of this Agreement, Employer shall employ Manager and Manager shall
render services to Employer in the capacity and with the title of Senior VP of Mergers and
Acquisitions, or such other title as may be established by Employer from time to time. Manager
shall devote his full time and best effort to the successful functioning of the business of
Employer and shall faithfully and industriously perform all duties pertaining to his position,
including such additional duties as may be assigned from time to time, to the best of Manager’s
ability, experience and talent. Manager shall be subject at all times during the term hereof to
the direction and control of Employer in respect of the work to be done.

          (c) Manager’s employment hereunder shall be for an initial term of three years. Thereafter,
the term shall renew automatically each year for a term of one year, unless either party provides
the other with written notice at least 30 days prior to the expiration of the term.

     2. Compensation. (a) Manager’s salary (“Base Compensation”) shall be $225,000 per year,
payable bi-weekly (unless the payroll practice of the Company changes to monthly or semi-monthly)
in arrears and subject to change only with the mutual written consent of Employer and Manager. It
is the intent of the Company to develop guidelines for annual merit increases for salaries of all
salaried employees/management, including Manager.

          (b) Manager shall be entitled to participate in the Alon USA Annual Cash Bonus Plan containing
the terms and conditions set forth in Exhibit A attached hereto and incorporated herein which will
be subject to modification in the sole discretion of the Company without advanced notice from time
to time as set forth therein. For purposes of determining the Manager’s Target Bonus Amount under
such plan, the Manager shall participate up to an amount equal to sixty five percent (65%) of base
compensation.

     3. Fringe Benefits; Reimbursement of Expenses. Employer shall make available, or cause to be
made available to Manager, throughout the period of his employment hereunder, such benefits,
including any disability, hospitalization, medical benefits, life insurance, pension plan or other
benefits or policy, as may be put into effect from time to time by Employer generally for other
Management members at the level of Management. The Company expressly reserves the right to modify
such benefits at any time, subject to the provisions of paragraph 10(b) hereof.

 

 

     Manager will be reimbursed for all reasonable out-of-pocket business, business entertainment
and travel expenses paid by the Manager, in accordance with and subject to applicable Company
expense incurrence and reimbursement policies. Any expense reimbursements required to be made
under this Agreement will be for expenses incurred by Manager during the term of this Agreement,
and such reimbursements will be made not later than December 31st of the year following
the year in which Manager incurs the expense; provided, that in no event will the amount of
expenses eligible for payment or reimbursement in one calendar year affect the amount of expenses
to be paid or reimbursed in any other calendar year. Manager’s right to expense reimbursement will
not be subject to liquidation or exchange for another benefit.

     4. Vacation. The number of vacation days to which Manager shall be entitled each year shall
be based on the years of service of the Manager for Employer as follows — 15 days up to 10 years,
20 days after 10 years, 25 days after 20 years and 30 days after 30 years. Unless otherwise
agreed, vacation may not be carried over into a new calendar year. Vacation time shall be taken
only after providing reasonable notice to the person to whom the Manager reports.

     5. Compliance With Employer Policies. Manager shall comply with and abide by all employment
policies and directives of Employer. Employer may, in its sole discretion, change, modify or adopt
new policies and directives affecting Manager’s employment. In the event of any conflict between
the terms of this Agreement and Employer’s employment policies and directives, the terms of this
Agreement will be controlling.

     6. Restrictive Covenant. In consideration of the confidential business information that
Employer promises to provide Manager access or exposure to during the term of employment as
described in paragraph 7 of the Agreement, Manager agrees to the restrictive covenants set forth in
this paragraph 6 and its subparts:

          (a) Manager agrees that during the term of Manager’s employment with Employer and for a period
of one year following any termination of Manager’s employment, if the Manager terminates employment
during the first two years of Manager’s employment, or nine months, if the Manager terminates
employment after the first two years of employment and before the completion of five years of
employment (the “Non-Compete Period”), Manager will not, without the prior written consent of
Employer, directly or indirectly, either as an individual or as an employee, officer, director,
shareholder, partner, sole proprietor, independent contractor, consultant or in any other capacity
conduct any business, or assist any person in conducting any business, that is in competition with
the business of Employer or its Affiliates (as defined below).

          (b) In addition to any other covenants or agreements to which Manager may be subject, during
the Non-Compete Period, Manager will not, directly or indirectly, either as an individual or as an
employee, officer, director, shareholder, partner, sole proprietor, independent contractor,
consultant or in any other capacity whatsoever approach or solicit any customer or vendor of
Employer with whom the Manager had contact or received information about during the course of
employment for the purpose of causing, directly or indirectly, any such customer or vendor to cease
doing business with Employer or its Affiliates.

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     For the purposes of this Agreement, the “business of Employer or its Affiliates” means the
business of refining petroleum distillates and the wholesale distribution of such products in the
Territory. The term “Affiliates” means all subsidiaries of Employer and each person or entity that
controls, is controlled by, or is under common control with Employer. The “Territory” means the
states of Texas, New Mexico, Arizona, California, Oregon, Washington and Nevada. It is understood
and agreed that the scope of each of the covenants contained in this Section 6 is reasonable as to
time, area, and persons and is necessary to protect the legitimate business interest of Employer.
It is further agreed that such covenants will be regarded as divisible and will be operative as to
time, area and persons to the extent that they may be so operative. The terms of this Section 6
shall not apply to the ownership by Manager of less than 5% of a class of equity securities of an
entity, which securities are publicly traded on the New York Stock Exchange, the American Stock
Exchange, or the National Market System of the National Association of Securities Dealers Automated
Quotation System. The provisions of this Section 6 will survive any termination or expiration of
this Agreement.

     7. Confidentiality. (a) During the course of employment, Employer promises to provide
Manager with access or exposure to information or ideas of a confidential or proprietary nature
which pertain to an area of Employer’s business, financial, legal, marketing, administrative,
personnel, technical or other functions or which constitute trade secrets (including, but not
limited to, as examples specifications, designs, plans, drawings, software, data, prototypes, the
identity of sources and markets, marketing information and strategies; business and financial plans
and strategies, methods of doing business; data processing and management information and technical
systems, programs and practices; customers and users and their needs, sales history; and financial
strength), and such information of third parties which has been provided to Employer in confidence
(“Confidential Information”). All such information is deemed “confidential” or “proprietary”
whether or not it is so marked, provided that it is maintained as confidential by the Company.
Information will not be considered to be Confidential Information to the extent that it is
generally available to the public. Nothing in this Section 7 will prohibit the use or disclosure
by Manager of knowledge that is in general use in the industry or general business knowledge.

          (b) Manager shall hold Confidential Information in confidence, use it only in connection with
the performance of duties on behalf of Employer, and restrict its disclosure to those directors,
employees or independent contractors of Employer having a need to know.

          (c) Manager shall not disclose, copy or use Confidential Information for the benefit of anyone
other than Employer without Employer’s prior written consent.

          (d) Manager shall, upon Employer’s request or Manager’s termination of employment, return to
Employer any and all written documents containing Confidential Information in Manager’s possession,
custody or control.

     8. Non-Interference with Employment Relationships. In consideration of the confidential
business information that Employer promises to provide Manager access or exposure to during the
term of employment as described in paragraph 7 of this

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Agreement, Manager promises that during the term of his/her employment with Employer, and for
a period of one (1) year thereafter, Manager shall not, without Employer’s prior written consent,
directly or indirectly: (a) induce or attempt to induce any employee to leave the Employer’s
employ; or (b) interfere with or disrupt the Employer’s relationship with any of its employees or
independent contractors.

     9. Copyright, Inventions, Patents. Employer shall have all right, title and interest to all
features (including, but not limited to, graphic designs, copyrights, trademarks and patents)
created during the course of or resulting from Manager’s employment with Employer. Manager hereby
assigns to Employer all copyright ownership and rights to any work developed by Manager and reduced
to practice for or on behalf of Employer or which relate to Employer’s business during the course
of the employment relationship. At Employer’s expense, Manager shall do all other things
including, but not limited to, the giving of evidence in suits and proceedings, and the furnishing
and/or assigning of all documentation and other materials relative to Employer’s intellectual
property rights, necessary or appropriate for Employer to obtain, maintain, and assert its rights
in such work.

     10. Termination of Employment. (a) Employer may terminate Manager’s employment hereunder
at any time for Cause. For purposes hereof, Cause shall mean: (i) conviction of a felony or a
misdemeanor where imprisonment is imposed for more than 30 days; (ii) commission of any act of
theft, fraud, dishonesty, or falsification of any employment or Employer records; (iii) improper
disclosure of Confidential Information; (iv) any intentional action by the Manager having a
material detrimental effect on the Company’s reputation or business; (v) any material breach of
this Agreement, which breach is not cured within ten (10) business days following receipt by
Manager of written notice of such breach; (vi) unlawful appropriation of a corporate opportunity;
or (vii) intentional misconduct in connection with the performance of any of Manager’s duties,
including, without limitation, misappropriation of funds or property of the Company, securing or
attempting to secure to the detriment of the Company any profit in connection with any transaction
entered into on behalf of the Company, any material misrepresentation to the Company, or any
knowing violation of law or regulations to which the Company is subject. Upon termination of
Manager’s employment with the Company for Cause, the Company shall be under no further obligation
to Manager, except to pay all earned but unpaid Base Compensation and all accrued benefits and
vacation to the date of termination (and to the extent required by law).

          (b) Employer may terminate Manager’s employment hereunder without Cause, or Manager may
terminate his employment hereunder for Good Reason, upon not less than thirty (30) days prior
written notice. In the event of any such termination, Manager shall be entitled to receive his
Base Compensation through the termination date and any annual bonus entitlement, prorated for the
number of months of employment for the fiscal year in question, all accrued benefits and vacation
to the date of termination (and to the extent required by law), plus, during the first two years
of Manager’s employment hereunder, an additional amount of severance payment equal to one year’s
Base Compensation as in effect immediately before any notice of termination, or, after the first
two years of Manager’s employment hereunder, an additional amount of severance payment equal to
nine months’ Base Compensation as in effect immediately before any notice of termination. “Good
Reason” means (i) without the Manager’s prior

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written consent, the Employer reduces Manager’s Base Compensation or the percentage of
Manager’s Base Compensation established as Manager’s maximum target bonus percentage for purposes
of Employer’s annual cash bonus plan., (ii) any material breach of this Agreement, which breach is
not cured within ten (10) business days following receipt by Employer of written notice of such
breach; and (iii) the delivery by Employer of notice pursuant to Section 1 (c) of this Agreement
that it does not wish this Agreement to automatically renew for any subsequent year.

          (c) Manager may terminate the employment relationship hereunder with not less than thirty (30)
days prior written notice. Upon any such termination of Manager’s employment, other than for Good
Reason, the Company shall be under no further obligation to Manager, except to pay all earned but
unpaid Base Compensation and all accrued benefits and vacation to the date of termination (and to
the extent required by law).

          (d) To the extent that a payment becomes due to Manager under this Section 10 by reason of
Manager’s termination of employment, (i) the term “termination of employment” will have the same
meaning as “separation from service” under Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”), and (ii) except as provided in Section 10(e) below, all such payments will be
made in a single lump sum no later than 60 days after the date on which Manager terminates
employment.

          (e) If the Company makes a good faith determination that a payment under this Agreement (i)
constitutes a deferral of compensation for purposes of Section 409A of the Code, (ii) is made to
Manager by reason of his separation from service and (iii) at the time such payment would otherwise
be made Manager is a “specified employee” as hereinafter defined, the payment will be delayed until
the first day of the seventh month following the date of such termination of employment and will
bear interest at the prime rate of interest as published in the Wall Street Journal on the first
business day following the date of Manager’s termination of employment. For purposes of this
Section 10, a specified employee is an officer of Alon USA Energy, Inc. with annual compensation in
excess of $150,000 (as adjusted for years after 2008), provided that only the 50 highest paid
officers of Alon USA Energy, Inc. may constitute “specified employees” for any 12-month period. An
individual who is identified as a one of the 50 highest paid officers during any portion of a
calendar year will be a specified employee for purposes of the Agreement during the 12-month period
beginning on April 1 of the following calendar year.

          (f) The provisions of Sections 6, 7, 8 and 9 of this Agreement will continue in effect
notwithstanding any termination of Manager’s employment.

     11. Mediation and Arbitration. (a) Employer and Manager hereby state their mutual desire
for any dispute concerning a legally cognizable claim arising out of this Agreement or in
connection with the employment of Manager by Employer, including, but not limited to, claims of
breach of contract, fraud, unlawful termination, discrimination, harassment, workers’ compensation
retaliation, defamation, tortious infliction of emotional distress, unfair competition, and
conversion (“Legal Dispute”), to be resolved amicably, if possible, and without the need for
litigation.

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          (b) Based on this mutual desire, in the event a Legal Dispute arises, the parties shall
utilize the following protocol:

               (i) The parties shall first submit the Legal Dispute to mediation under the auspices of the
American Arbitration Association (“AAA”) and pursuant to the mediation rules and procedures
promulgated by the AAA.

               (ii) In the event mediation is unsuccessful in fully resolving the Legal Dispute, binding
arbitration shall be the method of final resolution of the Legal Dispute. The parties expressly
waive their rights to bring action against one another in a court of law, except as expressly
provided in subsection (d). The parties hereto acknowledge that failure to comply with this
provision shall entitle the non-breaching party not only to damages, but also to injunctive relief
to enjoin the actions of the breaching party. Any Legal Dispute submitted to Arbitration shall be
under the auspices of the AAA and pursuant to the “National Rules for the Resolution of Employment
Disputes,” or any similar identified rules promulgated at such time the Legal Dispute is submitted
for resolution. All mediation and arbitration hearings shall take place in Dallas, Texas.

          (c) Notice of submission of any Legal Dispute to mediation shall be provided no later than
three hundred sixty-five (365) calendar days following the date the submitting party became aware
of the conduct constituting the alleged claims. Failure to do so shall result in the irrevocable
waiver of the claim made in the Legal Dispute.

          (d) Notwithstanding that mediation and arbitration are established as the exclusive procedures
for resolution of any Legal Dispute, (i) either party may apply to an appropriate judicial or
administrative forum for injunctive relief and (ii) claims by Employer arising in connection with
paragraphs 6, 7, 8 or 9 may be brought in any court of competent jurisdiction.

          (e) Each party acknowledges that a remedy at law for any breach or attempted breach of
paragraphs 6, 7, 8 or 9 of this Agreement will be inadequate, agrees that Employer will be entitled
to specific performance and injunctive and other equitable relief in case of any breach or
attempted breach, and agrees not to use as a defense that any party has an adequate remedy at law.
This Agreement shall be enforceable in a court of equity, or other tribunal with jurisdiction, by a
decree of specific performance, and appropriate injunctive relief may be applied for and granted in
connection herewith. Such remedy shall not be exclusive and shall be in addition to any other
remedies now or hereafter existing at law or in equity, by statute or otherwise. Except as
provided in subsection (c) no delay or omission in exercising any right or remedy set forth in this
Agreement shall operate as a waiver thereof or of any other right or remedy and no single or
partial exercise thereof shall preclude any other or further exercise thereof or the exercise of
any other right or remedy.

     12. Assignment. This Agreement shall not be assignable by either party except that upon any
sale or transfer of all or substantially all of its business by Employer, Employer may assign this
Agreement to its successor; any failure to make such an assignment will be considered to constitute
the termination of Manager’s employment without cause effective upon the closing of the referenced
transaction.

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     13. No Inducement, Agreement Voluntary. Manager represents that (a) he has not been
pressured, misled, or induced to enter into this Agreement based upon any representation by
Employer or its agents not contained herein, (b) he has entered into this Agreement voluntarily,
after having the opportunity to consult with representatives of his own choosing and that (c) his
agreement is freely given.

     14. Interpretation and Severability. Any paragraph, phrase or other provision of this
Agreement that is determined by a court, arbitrator or arbitration panel of competent jurisdiction
to be unreasonable or in conflict with any applicable statute or rule, shall be deemed, if
possible, to be modified or altered so that it is not unreasonable or in conflict or, if that is
not possible, then it shall be deemed omitted from this Agreement. The invalidity of any portion
of this Agreement shall not affect the validity of the remaining portions. Further, should any
clause, sentence, provision, paragraph, or part of this Agreement be adjudged by any court of
competent jurisdiction, or be held by any other competent governmental authority having
jurisdiction, to be illegal, invalid, or unenforceable, such judgment or holding shall not affect,
impair, or invalidate the remainder of the Agreement, but shall be confined to the greatest extent
possible in its operation to the particular clause, sentence, provision, paragraph, or part of the
agreement directly involved, and the remainder of the Agreement shall remain in full force and
effect.

     15. Prior Agreements Superseded; Amendments. This Agreement revokes and supersedes all prior
agreements, written and oral, and represents the entire agreement between the parties in relation
to the employment of the Manager by the Company after the Commencement Date and, except as provided
in Section 16 below, shall not be subject to modification or amendment by any oral representation,
or any written statement by either party, except for a dated writing signed by the Manager and the
Employer.

     16. Section 409A of the Code. To the extent that any payment made under this Agreement
constitutes a deferral of compensation subject to Section 409A of the Code, the time of such
payment may not be accelerated except to the extent permitted by Section 409A of the Code. Where
Section 409A of the Code permits a payment or benefit that constitutes a deferral of compensation
to be accelerated, the payment or benefit may be accelerated in the sole discretion of the Company.
Notwithstanding any provision of this Agreement to the contrary, in light of the uncertainty with
respect to the proper application of Section 409A of the Code, the Company reserves the right to
make amendments to this Agreement as the Company deems necessary or desirable solely to avoid the
imposition of taxes or penalties under Section 409A of the Code.

     17. Notices. All notices, demands and requests of any kind to be delivered in connection with
this Agreement shall be in writing and shall be deemed to have been duly given if personally
delivered or if sent by nationally-recognized overnight courier or by registered or certified mail,
return receipt requested and postage prepaid, addressed as follows:

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	 	(a)	 	if to the Company, to:

Alon USA GP, LLC

7616 LBJ Freeway, Suite 300

Dallas, TX 75251

Telecopy number: (972) 367-3724
	 
	 	(b)	 	if to Manager, to the address of Manager
set forth on the signature page hereto;

or to such other address as the party to whom notice is to be given may have furnished to the other
in writing in accordance with the provisions of this Section 16. Any such notice or communication
shall be deemed to have been received: (i) in the case of personal delivery, on the date of such
delivery; (ii) in the case of nationally-recognized overnight courier, on the next business day
after the date sent; and (iii) if by registered or certified mail, on the third business day
following the date postmarked.

     18. Applicable Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of Texas without giving effect to principles of conflicts of law.

	 	 	 	 	 	 	 	 
	MANAGER:	 	EMPLOYER:
	 
	 	 	 	 	 	 
	Michael Oster	 	ALON USA GP, LLC
	 
	 	 	 	 	 	 
	/s/ Michael Oster	 	By:	 	/s/ Jeff D. Morris
	 

	 	 	 	 
	 	 
	 

	 	 	 	Name:
	 	Jeff D. Morris
	 

	 	 	 	Title:
	 	President and CEO

Address for notices:

18716 Mapletree Ln.

Dallas Tx, 75252

8exv10w88

Exhibit 10.88

AMENDED AND RESTATED STOCKHOLDERS AGREEMENT

     THIS AMENDED AND RESTATED STOCKHOLDERS AGREEMENT (this “Agreement”) is made as of the 31st day
of March, 2009, by and among Alon USA Energy, Inc., a Delaware corporation (“Alon USA”), Alon
Refining Louisiana, Inc., a Delaware corporation (the “Company”), Alon Louisiana Holdings, Inc., a
Delaware corporation (“Alon LA”), Alon Israel Oil Company, Ltd., an Israeli limited liability
company (“Alon Israel” and, together with Alon LA, the “Stockholders”), and any other stockholder
who from time to time becomes party to this Agreement by execution of a joinder agreement in form
and substance reasonably acceptable to the Stockholders.

RECITALS:

     A. On July 3, 2008, Alon Israel purchased 80,000 shares of the Company’s Series A Preferred
Stock, par value $1,000.00 per share, pursuant to that certain Series A Stock Purchase Agreement
dated as of July 3, 2008 by and between the Company and Alon Israel (the “Original Purchase
Agreement”);

     B. In connection with the Original Purchase Agreement, the parties hereto entered into a
Stockholders Agreement (the “Original Stockholders Agreement”), dated as of July 3, 2008, to govern
the terms on which the securities of the Company will be held and transferred;

     C. Alon LA has requested that Alon Israel cause the Additional Letters of Credit (as defined
below) in an amount up to $25,000,000.00 to be provided in favor of Alon Refining Krotz Springs,
Inc., a Delaware corporation (“Krotz Springs”), in connection with negotiations by Krotz Springs
for amendments to the Term Loan Agreement, dated as of July 3, 2008, as amended to date, by and
among the Company, Krotz Springs, the lenders party thereto and Credit Suisse, Cayman Islands
Branch, and any successor thereto (as amended, the “Term Loan Agreement”), and the Loan and
Security Agreement, dated as of July 3, 2008, as amended to date, by and among the Company, Krotz
Springs, any additional subsidiary joined thereunder and Bank of America, N.A. (as amended, the
“Revolving Credit Agreement”);

     D. In consideration for the issuance of the Additional Letters of Credit, (i) Alon LA will,
and shall cause the Company to, grant Alon Israel an option (the “L/C Option”) to withdraw the
Additional Letters of Credit and the Original Letters of Credit (as defined below) and acquire
shares of Preferred Stock (as defined below) in an aggregate amount equal to such withdrawn
Additional Letters of Credit and/or withdrawn Original Letters of Credit, and (ii) Alon USA and
Alon LA agree to certain changes to the terms and conditions of the Original Stockholders Agreement
as set forth herein; and

     E. The parties hereto desire to amend the Original Stockholders Agreement as hereinafter
provided and have agreed, for purposes of clarity and ease of administration, to amend the Original
Stockholders Agreement and then restate the Original Stockholders Agreement in its entirety by
means of this Agreement.

 

 

AGREEMENT:

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements
hereinafter set forth, the parties hereto agree as follows:

1. Definitions.

     1.1 Certain Interpretive Matters. When a reference is made in this Agreement to
Sections, such reference will be to a Section of this Agreement unless otherwise indicated.
Whenever the words “include,” “includes” or “including” are used in this Agreement, they will be
deemed to be followed by the words “without limitation.” Unless the context otherwise requires,
(i) “or” is disjunctive but not necessarily exclusive, (ii) words in the singular include the
plural and vice versa, (iii) the use in this Agreement of a pronoun in reference to a party hereto
includes the masculine, feminine or neuter, as the context may require, (iv) the use in this
Agreement of “day” will mean a calendar day unless indicated otherwise, (v) all references to $ or
dollar amounts will be to lawful currency of the United States, and (vi) the words “herein”,
“hereby”, “hereof”, and “hereunder” and other words of similar import refer to this Agreement as a
whole and not to any particular section, paragraph or other subdivision of this Agreement.

     1.2 Number of Shares of Stock. Whenever any provision of this Agreement calls for any
calculation based on a number of shares of capital stock issued and outstanding or held by a
Stockholder, the number of shares deemed to be issued and outstanding or held by that Stockholder,
unless specifically stated otherwise, as applicable, shall be the total number of shares of the
Company’s Common Stock, par value $0.01 per share (the “Common Stock”), or Preferred Stock then
issued and outstanding or owned by such Stockholder, as applicable.

     1.3 Defined Terms. The following capitalized terms, as used in this Agreement, shall
have the meanings set forth below.

     “Additional L/C Preferred Shares” means the First L/C Preferred Shares and the Second L/C
Preferred Shares.

     “Additional Letters of Credit” means the First Letters of Credit and the Second Letters of
Credit.

     “Affiliate” shall mean with respect to any Person (as defined below), any Person who, directly
or indirectly, controls, is controlled by or is under common control with such Person, including
any partner, officer, director, member, manager or employee of such Person.

     “Alon Common Stock” shall mean the shares of common stock, par value $0.01 per share, of Alon
USA Energy, Inc., a Delaware corporation.

     “Business Day” means a day other than a Saturday, Sunday or other day on which commercial
banks in Dallas, Texas are not open for business.

     “Certificate” means the Company’s Amended and Restated Certificate of Incorporation, as in
effect from time to time.

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     “Change of Control” means either of the following events:

     (a) the failure, for any reason, of Alon USA or any of its Affiliates to beneficially own,
directly or indirectly, at least a majority of the voting stock of the Company or, if applicable,
any entity that succeeds to all or substantially all of the assets of the Company by purchase,
contribution, assignment, merger, consolidation or otherwise; or

     (b) the failure, for any reason, of Alon Israel to beneficially own, directly or indirectly,
at least a majority of the voting stock of Alon USA or, if applicable, any entity that succeeds to
all or substantially all of the assets of Alon USA by purchase, contribution, assignment, merger,
consolidation or otherwise.

     “First L/C Alon Share Price” shall mean the greater of (i) the average of the daily closing
sales prices per share of the Alon Common Stock on the New York Stock Exchange for each trading day
during the period commencing on the day 90 days prior to the date of the issuance of the First
Letters of Credit and ending on the date of issuance, and (ii) the closing sale price per share of
the Alon Common Stock on the New York Stock Exchange on the date of the issuance of the First
Letters of Credit.

     “First L/C Preferred Shares” means the Preferred Shares issued upon an exercise of the L/C
Option with respect to the First Letters of Credit.

     “Original Preferred Alon Share Price” shall mean the greater of (i) the average of the daily
closing sales prices per share of the Alon Common Stock on the New York Stock Exchange for each
trading day during the period commencing on the day 90 days prior to the date of the Original
Stockholders Agreement and ending on the date of the Original Stockholders Agreement (ii) the
closing sale price per share of the Alon Common Stock on the New York Stock Exchange on the date of
the Original Stockholders Agreement.

     “Original Preferred Shares” means the 80,000 shares of Preferred Stock issued pursuant to the
Original Purchase Agreement, together with any and all shares of Preferred Stock that may be issued
upon an exercise of the L/C Option with respect to the Original Letters of Credit.

     “Par Value” means the par value of $1,000.00 per share of the Preferred Stock.

     “Permitted Transferee” means any Person to which a Stockholder may Transfer Securities as
permitted by and in accordance with Sections 2.1 and 2.2 of this Agreement.

     “Person” means an individual, a corporation, an association, a joint venture, a partnership, a
limited liability company, an estate, a trust, an unincorporated organization and any other entity
or organization, governmental or otherwise.

     “Preferred Shares” means, collectively, the Original Preferred Shares, the First L/C Preferred
Shares and the Second L/C Preferred Shares.

     “Preferred Stock” means the Company’s Series A Preferred Stock, par value $1,000 per share.

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     “Second L/C Alon Share Price” shall mean the greater of (i) the average of the daily closing
sales prices per share of the Alon Common Stock on the New York Stock Exchange for each trading day
during the period commencing on the day 90 days prior to the date of the issuance of the Second
Letters of Credit and ending on the date of issuance, and (ii) the closing sale price per share of
the Alon Common Stock on the New York Stock Exchange on the date of the issuance of the Second
Letters of Credit.

     “Second L/C Preferred Shares” means the Preferred Shares issued upon an exercise of the L/C
Option with respect to the Second Letters of Credit.

     “Securities” means, at any time, any shares of capital stock of the Company, including Common
Stock and Preferred Stock now or hereafter issued by the Company, together with any options thereon
and any other shares of stock directly or indirectly issued or issuable with respect thereto,
whether by way of a stock dividend, stock split or in exchange for or upon conversion of such
shares or otherwise in connection with a combination of shares, recapitalization, merger,
consolidation or other corporate reorganization, and any instrument convertible into or exercisable
or exchangeable for (in each case, directly or indirectly) shares of capital stock of the Company,
together with any shares of stock issued or issuable with respect thereto.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

     “Series A Dividends” has the meaning set forth in the Certificate.

     “Share Exchange” means the issuance and delivery by Alon USA to Alon Israel and/or any of its
Permitted Transferees in exchange for Preferred Shares held by Alon Israel and/or any of its
Permitted Transferees a number of duly authorized, fully paid and nonassessable whole shares of
Alon Common Stock as determined in accordance with Section 2.3 hereof.

     “Transfer” means any direct transfer, donation, sale, assignment, pledge, hypothecation, grant
of a security interest in or other disposal or attempted disposal of all or any portion of a
Security, any interest or rights in a Security, or any rights under this Agreement. “Transferred”
means the accomplishment of a Transfer, and “Transferee” means the recipient of a Transfer.

2. Restrictions on Transfer.

     2.1 Restrictions on Transfer. Each Stockholder agrees that such Stockholder will not,
without the prior written consent of the Company, not to be unreasonably withheld, Transfer all or
any portion of the Securities now owned or hereafter acquired by such Stockholder, except in
connection with, and strictly in compliance with this Article 2. Notwithstanding the foregoing, a
Transfer by a Stockholder to any Affiliate of such Stockholder shall not be subject to the prior
consent of the Company.

     2.2 Permitted Transfers. Notwithstanding the provisions of Section 2.1, no Transfer
shall be permitted or effected hereunder unless and until the Transferee shall have entered into a
joinder agreement in form and substance reasonably acceptable to the Stockholders providing that
all Securities so Transferred shall continue to be subject to all provisions of this Agreement as
if such Securities were still held by such Stockholder (“Joinder Agreement”).

4

 

Notwithstanding anything to the contrary in this Agreement or any failure by a Transferee
under this Section 2.2 to execute a Joinder Agreement, such Transferee shall take any Securities so
Transferred subject to all provisions of this Agreement as if such Securities were still held by
the Stockholder making such Transfer, whether or not they so agree in writing.

     2.3 Exchange Right.

          (a) Subject to the prior receipt by Alon USA of approval of holders of a majority of the Alon
Common Stock with respect to the issuance of the Exchange Shares (as defined below) pursuant to and
in compliance with Section 312.03 of the NYSE’s Listed Company Manual (“NYSE Stockholder
Approval”), prior to the consummation of any Change of Control (a “Change of Control Date”), each
of Alon USA and Alon Israel shall have the option, exercisable at each such party’s sole and
absolute discretion, to require the other party to consummate a Share Exchange by delivery to the
other party at least 10 Business Days prior to the Change of Control Date of a written notice (the
“Exercise Notice”) setting forth such party’s election to effectuate a Share Exchange. Any Share
Exchange elected pursuant to this Section 2.3(a) shall be consummated effective as of the Business
Day immediately preceding such Change of Control Date (the “Change of Control Exchange Date”).

          (b) Subject to the prior receipt by Alon USA of NYSE Stockholder Approval, Alon Israel and/or
any of its Permitted Transferees shall have the option (the “Exchange Option”), exercisable for a
five Business Day period beginning on the first day on which the Alon USA securities trading window
is open after each of January 3, 2010, July 1, 2010 and January 1, 2011 to require Alon USA to
consummate a Share Exchange by delivery to Alon USA of an exercise notice setting forth the
election to effectuate a Share Exchange (the date on which such Share Exchange is consummated being
referred to herein as a “Voluntary Exchange Date”).

          (c) If Krotz Springs’ assets are the subject of any proceeding under, or any order, decree or
judgment entered in any proceeding under, any bankruptcy, insolvency, receivership, reorganization,
liquidation or other similar law (other than a voluntary liquidation pursuant to which there are
sufficient proceeds to distribute to the holders of the Preferred Shares an aggregate amount equal
to the par value plus accrued dividends of all of the then outstanding Preferred Shares) (each, a
“Trigger Event”), then, subject to the prior receipt by Alon USA of NYSE Stockholder Approval, Alon
Israel and/or any of its Permitted Transferees shall have the option to require Alon USA to
consummate a Share Exchange effective (the date on which such Share Exchange is consummated being
referred to herein as a “Trigger Event Exchange Date”).

          (d) If a Share Exchange effected pursuant to Sections 2.3(a), (b) or (c) shall not have
occurred prior to 5:00 p.m. (Dallas, Texas time) on July 1, 2011 (the “Mandatory Exchange Date”),
then, subject to the prior receipt by Alon USA of NYSE Stockholder Approval, Alon USA and Alon
Israel and/or any of its Permitted Transferees shall consummate a Share Exchange effective as of
the Mandatory Exchange Date.

          (e) Alon USA acknowledges and agrees that it shall include the NYSE Stockholder Approval (and
all required disclosures) as a matter to be voted upon in its proxy statement relating to its 2009
annual meeting of stockholders.

5

 

          (f) On the Change of Control Exchange Date, Voluntary Exchange Date, Trigger Event Exchange
Date or Mandatory Exchange Date, as applicable, Alon USA shall issue and deliver to Alon Israel
and/or any of its Permitted Transferees in exchange for the Preferred Shares subject to such Share
Exchange (all of which shares shall be transferred and delivered to Alon USA free and clear of any
lien, claim, judgment, charge, mortgage, security interest, escrow, equity or other encumbrance), a
number of duly authorized, fully paid and nonassessable whole shares of Alon Common Stock equal to:

     (i) with respect to the Original Preferred Shares, the quotient obtained by
dividing (x) the sum of (A) the aggregate Par Value of the Original Preferred Shares
being exchanged by Alon Israel and/or any of its Permitted Transferees, and (B) the
aggregate Series A Dividends accrued but unpaid on such Original Preferred Shares,
whether or not declared, together with any other dividends declared but unpaid on
such Original Preferred Shares, by (y) the Original Preferred Alon Share Price (the
“Original Exchange Shares”); provided that in lieu of any fractional share of Alon
Common Stock that would otherwise be payable by operation of this subsection, Alon
USA shall pay to the Person entitled thereto an amount in cash equal to such
fraction multiplied by the Original Preferred Alon Share Price.

     (ii) with respect to the First L/C Preferred Shares, the quotient obtained by
dividing (x) the sum of (A) the aggregate Par Value of the First L/C Preferred
Shares being exchanged by Alon Israel and/or any of its Permitted Transferees, and
(B) the aggregate Series A Dividends accrued but unpaid on such First L/C Preferred
Shares, whether or not declared, together with any other dividends declared but
unpaid on such First L/C Preferred Shares, by (y) the First L/C Alon Share Price
(the “First L/C Exchange Shares”); provided that in lieu of any fractional share of
Alon Common Stock that would otherwise be payable by operation of this subsection,
Alon USA shall pay to the Person entitled thereto an amount in cash equal to such
fraction multiplied by the First L/C Alon Share Price;

     (iii) with respect to the Second L/C Preferred Shares, the quotient obtained by
dividing (x) the sum of (A) the aggregate Par Value of the Second L/C Preferred
Shares being exchanged by Alon Israel and/or any of its Permitted Transferees, and
(B) the aggregate Series A Dividends accrued but unpaid on such Second L/C Preferred
Shares, whether or not declared, together with any other dividends declared but
unpaid on such Second L/C Preferred Shares, by (y) the Second L/C Alon Share Price
(the “Second L/C Exchange Shares” and together with the Original Exchange Shares and
the First L/C Exchange Shares (the “Exchange Shares”); provided that in lieu of any
fractional share of Alon Common Stock that would otherwise be payable by operation
of this subsection, Alon USA shall pay to the Person entitled thereto an amount in
cash equal to such fraction multiplied by the Second L/C Alon Share Price; and

          (g) As a condition precedent to delivery of Exchange Shares, Alon Israel and/or any of its
Permitted Transferees shall surrender the certificate or certificates for all

6

 

Preferred Shares being exchanged by it and/or its Permitted Transferees pursuant to such Share
Exchange (or, if Alon Israel and/or any of its Permitted Transferees alleges that any such
certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement
reasonably acceptable to Alon USA to indemnify Alon USA and the Company against any claim that may
be made against Alon USA or the Company on account of the alleged loss, theft or destruction of
such certificate) to Alon USA at its principal office. If so required by Alon USA, certificates
surrendered for exchange shall be endorsed or accompanied by written instrument or instruments of
transfer, in form reasonably satisfactory to Alon USA, duly executed by the registered holder. All
rights of Alon Israel and/or any of its Permitted Transferees with respect to the Preferred Shares
exchanged pursuant to Section 2.3, whether arising under the Certificate, this Agreement or
otherwise, including the rights, if any, to receive Series A Dividends accrued on or after the
Change of Control Exchange Date, Voluntary Exchange Date, Trigger Event Exchange Date or Mandatory
Exchange Date, as applicable, will be deemed transferred and assigned by Alon Israel and its
Permitted Transferees to Alon USA on the Change of Control Exchange Date, Voluntary Exchange Date,
Trigger Event Exchange Date or Mandatory Exchange Date, as applicable, (notwithstanding the failure
of Alon Israel and/or any of its Permitted Transferees to surrender the certificates at or prior to
such time), except only the right of Alon Israel and/or any of its Permitted Transferees, upon
surrender of the certificate or certificates (or lost certificate affidavit and agreement)
therefor, to receive Exchange Shares.

          (h) If there shall occur any reorganization, recapitalization, reclassification or other
similar event involving Alon USA in which the Alon Common Stock is reclassified as, converted into
or exchanged for new or different securities (the “Successor Securities”), then, following any such
reorganization, recapitalization, reclassification or other event, the Preferred Shares shall
instead be exchangeable pursuant to this Section 2.3 for such Successor Securities and all
references in this Agreement to the Alon Common Stock shall be deemed to be references to such
Successor Securities, mutatis mutandis.

          (i) In connection with a Share Exchange, Alon USA will, upon request, enter into a customary
and reasonable registration rights agreement with a Permitted Transferee of Alon Israel with
respect to shares of Alon USA common stock issued to such Permitted Transferee pursuant to such
Share Exchange.

     2.4 Effect of Prohibited Transfers. If any Transfer by any Stockholder is made or
attempted contrary to the provisions of this Agreement, such purported Transfer shall be void ab
initio; the Company and the other parties hereto shall have, in addition to any other legal or
equitable remedies which they may have, the right to enforce the provisions of this Agreement by
actions for specific performance (to the extent permitted by law); and the Company shall have the
right to refuse to recognize any improper Transferee of any Stockholder for any purpose.

     2.5 Call Option.

          (a) With respect to the Original Preferred Shares, during the 18 month period beginning on
July 3, 2008, each of Alon USA and Alon LA shall have the option to purchase from Alon Israel
and/or its Permitted Transferees all or a portion of the Original Preferred Shares at a price per
share payable in cash equal to the Par Value plus accrued but unpaid dividends; provided, however,
that such call option shall be (i) subject to the prior release (or withdrawal

7

 

pursuant to Section 5.1) of the Original Letters of Credit and (ii) conditioned upon the
approval of such purchase by the audit committee of Alon USA.

          (b) With respect to the Additional L/C Preferred Shares, during the period beginning on the
date of issuance of any Preferred Shares in connection with the exercise of the L/C Option and
ending on December 31, 2010, each of Alon USA and Alon LA shall have the option to purchase from
Alon Israel and/or its Permitted Transferees all or a portion of the Additional L/C Preferred
Shares at a price per share equal to the Par Value plus accrued but unpaid dividends; provided,
however, that such call option shall be (i) subject to the prior release (or withdrawal pursuant to
Section 5.1) of the Additional Letters of Credit and (ii) conditioned upon the approval of such
purchase by the audit committee of Alon USA.

3. Original Letters of Credit.

     3.1 Issuance of Original Letters of Credit. In accordance with the Original Purchase
Agreement, Alon Israel shall have caused to be issued and delivered to Bank of America, N.A. (“Bank
of America”) one or more irrevocable standby letters of credit (each, an “Original Letter of
Credit”) up to the aggregate amount of $55,000,000.00 in order to support the borrowing base of
Krotz Springs under the Revolving Credit Agreement.

     3.2 Repayment. In the event that Bank of America draws upon one or more Original
Letters of Credit at any time during which the Original Letters of Credit are outstanding, Alon LA
shall issue and deliver to Alon Israel within three days following each such draw a promissory note
(each an “Original Promissory Note”) in a principal amount equal to the aggregate amount of such
draw under the Original Letter(s) of Credit (each an “Original Repayment Amount”) and bearing
interest at a rate of 10.75% per annum in full and final settlement and discharge of any obligation
or liability of the Company or any Affiliate of the Company to Alon Israel with respect to the
Original Repayment Amount; provided, however, that no fees, bank charges or other expenses shall be
included in the determination of the Original Repayment Amount. The principal amount and all
accrued interest under each Original Promissory Note shall be due and payable on or before 12
months following the date of issuance of such Original Promissory Note. The Original Promissory
Note will provide that Alon USA may issue a whole number of shares of Alon Common Stock equal to
the quotient of (1) the Original Repayment Amount divided by (2) the Original Preferred Alon Share
Price to satisfy all obligations under the Original Promissory Note. Any shares of Alon Common
Stock issued to satisfy the Original Promissory Note shall be issued on the first day on which the
Alon Energy securities trading window is open after the date of the Original Promissory Note.

     3.3 Replacement. From and after the date of the initial issuance of the Original
Letters of Credit, Alon USA and the Company shall, and shall cause their Affiliates to, use their
respective best efforts (subject to the terms of their respective existing credit facilities and
other binding obligations) to either (i) replace the Original Letters of Credit with their own
resources or by obtaining funds or other support, including other letters of credit, through
commercially reasonable arrangements with third party financing sources or (ii) otherwise secure
the release by Bank of America of the letter of credit support requirement under the Revolving
Credit Agreement. In addition, if the Original Letters of Credit remain outstanding after the
first anniversary of the original issuance of such Original Letters of Credit, the Company shall,
and

8

 

shall cause Krotz Springs to, use its respective best efforts to prevent any draw down on the
Original Letters of Credit, including by reducing inventories and throughput at Krotz Springs.

     3.4 Expenses, Fees, Charges and Interest. Alon LA or Alon USA (subject to the terms
of their respective existing credit facilities and other binding obligations) shall pay the credit
support obligations of the Company set forth in Section 1.3 of the Original Purchase Agreement and
the Company is hereby released from such obligations.

4. Additional Letters of Credit.

     4.1 First Letters of Credit. Alon Israel shall cause to be issued and delivered to
one or more Persons, as designated by Krotz Springs, one or more irrevocable standby letters of
credit (the “First Letters of Credit”) in an aggregate face amount of up to $15,000,000.00 and
shall cause such First Letters of Credit to be maintained (unless replaced, reduced or withdrawn as
provided herein or unless drawn upon by the beneficiary thereof) pursuant to the Term Loan
Agreement and the Revolving Credit Agreement.

     4.2 Second Letters of Credit. On or before April 30, 2009, Alon Israel shall cause to
be issued and delivered to one or more Persons, as designated by Krotz Springs, one or more
irrevocable standby letters of credit (the “Second Letters of Credit”) in an aggregate face amount
of up to $10,000,000.00 and shall cause such First Letters of Credit to be maintained (unless
replaced, reduced or withdrawn as provided herein or unless drawn upon by the beneficiary thereof)
pursuant to the Term Loan Agreement and the Revolving Credit Agreement.

     4.3 Repayment. In the event that any Person draws upon an Additional Letter of Credit
at any time during which any Additional Letter of Credit remains outstanding, Alon LA shall issue
and deliver to Alon Israel within three days following each such draw a promissory note (each an
“L/C Promissory Note”) in a principal amount equal to the aggregate amount of such draw under the
applicable Additional Letter of Credit (each an “L/C Repayment Amount”) and bearing interest at a
rate of 10.75% per annum in full and final settlement and discharge of any obligation or liability
of the Company or any Affiliate of the Company to Alon Israel with respect to the L/C Repayment
Amount; provided, however, that no fees, bank charges or other expenses shall be included in the
determination of the L/C Repayment Amount. The principal amount and all accrued interest under
each L/C Promissory Note shall be due and payable on or before 12 months following the date of
issuance of such L/C Promissory Note. Each L/C Promissory Note will provide that Alon USA may
issue a whole number of shares of Alon Common Stock equal to the quotient of (1) the L/C Repayment
Amount divided by (2) the First L/C Alon Share Price or the Second L/C Alon Share Price, as
applicable, to satisfy all obligations under such L/C Promissory Note. Any shares of Alon Common
Stock issued to satisfy any L/C Promissory Note shall be issued on the first day on which the Alon
USA securities trading window is open after the date of such L/C Promissory Note.

     4.4 Replacement. From and after the date of the initial issuance of the Additional
Letters of Credit, Alon USA and the Company shall, and shall cause their Affiliates to, use their
respective best efforts (subject to the terms of their respective existing credit facilities and
other binding obligations) to either (i) replace the Additional Letters of Credit with their own
resources or by obtaining funds or other support, including other letters of credit, through
commercially

9

 

reasonable arrangements with third party financing sources or (ii) otherwise secure the
release of the letter of credit support requirements. In addition, if the Additional Letters of
Credit remain outstanding after the first anniversary of the original issuance of such Additional
Letters of Credit, the Company shall, and shall cause Krotz Springs to, use its respective best
efforts to prevent any draw down on the Additional Letters of Credit, including by reducing
inventories and throughput at Krotz Springs. If the Additional Letters of Credit remain outstanding
as of December 31, 2010, Alon USA and Alon LA shall be obligated to replace the Letters of Credit
or otherwise secure the release of the letter of credit support requirements; provided, that if
Alon USA and Alon LA fail to replace the Additional Letters of Credit or otherwise release the
credit support requirements by December 31, 2010, Alon USA or Alon LA (subject to the terms of
their respective existing credit facilities and other binding obligations) shall pay to Alon Israel
a penalty payment and incur an interest rate adjustment as set forth in Section 4.5.

     4.5 Expenses, Fees, Charges and Interest. Alon LA or Alon USA (subject to the terms
of their respective existing credit facilities and other binding obligations) shall pay to Alon
Israel for a period beginning on the date of the initial issuance of the Additional Letters of
Credit and ending on December 31, 2009, in consideration for causing the issuance of the Letters of
Credit, a rate per annum equal to 2% of the aggregate amount of Additional Letters of Credit
outstanding. If, after compliance by Alon LA or Alon USA with its obligations under Section 4.4 of
this Agreement to attempt to replace or secure the release of the Additional Letters of Credit, the
Additional Letters of Credit continue to remain outstanding after December 31, 2009, Alon Israel
will continue to provide the letter of credit support for an additional twelve month period during
which Alon LA or Alon USA (subject to the terms of their respective existing credit facilities and
other binding obligations) shall pay to Alon Israel, in consideration for continuing the letter of
credit support, a rate per annum equal to 4% of the aggregate amount of Letters of Credit
outstanding. If Alon USA and the Company fail to release the Additional Letters of Credit by
December 31, 2010, as required in Section 4.4, and the Additional Letters of Credit continue to
remain outstanding at such time, Alon LA or Alon USA (subject to the terms of their respective
existing credit facilities and other binding obligations) shall, within three days after December
31, 2010, pay to Alon Israel a penalty in an amount equal to the difference between (x) the
aggregate amount of payments Alon LA or Alon USA would have paid to Alon Israel for the letter of
credit support during the period beginning on the date of the initial issuance of the Additional
Letters of Credit and ending on December 31, 2010 if the rates described above would have been
10.75%, less (y) the aggregate amount of payments actually made by Alon Israel for the Letter of
Credit support during such period. Subject to receipt of the penalty payment by Alon LA or Alon
USA, Alon Israel will thereafter continue to provide the letter of credit support until such time
as either Alon LA or Alon USA shall have successfully replaced the Additional Letters of Credit or
such Additional Letters of Credit shall have been released, during which time Alon LA or Alon USA
(subject to the terms of their respective existing credit facilities and other binding obligations)
shall pay to Alon Israel, in consideration for continuing the letter of credit support, a rate per
annum equal to 10.75 % of the aggregate amount of Additional Letters of Credit outstanding.

5. Withdrawal of Letters of Credit and Preferred Stock Purchase Option.

     5.1 L/C Option.

10

 

          (a) While any Original Letters of Credit remain outstanding, Alon Israel may exercise the L/C
Option at any time and from time to time, to withdraw all or a portion of the outstanding Original
Letters of Credit and acquire Preferred Shares in accordance with Section 5.2 below. The Preferred
Shares delivered to Alon Israel upon such exercise shall be deemed to constitute Original Preferred
Shares for all purposes of this Agreement.

          (b) While any Additional Letters of Credit remain outstanding, Alon Israel may exercise the
L/C Option at any time and from time to time, to withdraw all or a portion of the outstanding
Additional Letters of Credit and acquire Preferred Shares in accordance with Section 5.2 below.

          (c) Alon Israel may exercise the L/C Option by providing written notice to Alon LA of Alon
Israel’s election thereof and by providing the date of the anticipated withdrawal of the Original
Letters of Credit or Additional Letters of Credit, as applicable, which will be at least 10
Business Days after the date of the delivery of such notice.

     5.2 L/C Stock Purchase Agreement. In the event that Alon Israel exercises an L/C
Option, Alon Israel and the Company will enter into a stock purchase agreement (the “L/C Stock
Purchase Agreement”) in the form attached hereto as Exhibit A pursuant to which the Company
will sell to Alon Israel a number of Preferred Shares equal to the quotient of (1) the aggregate
amount of the outstanding Original Letters of Credit or Additional Letters of Credit, as
applicable, being withdrawn divided by (2) $1,000.00. The sale of such Preferred Shares will not
be registered under the Securities Act, in reliance on an exemption from registration under Section
4(2) of the Securities Act. The closing of the transactions contemplated by the L/C Stock Purchase
Agreement will occur contemporaneously with the withdrawal of the Original Letters of Credit or
Additional Letters of Credit, as applicable.

6. Miscellaneous Provisions.

     6.1 Reliance. Each of the parties hereto agrees that each covenant and agreement made
by it in this Agreement is material, shall be deemed to have been relied upon by the other parties
and shall remain operative and in full force and effect after the date hereof regardless of any
investigation. This Agreement shall not be construed so as to confer any right or benefit upon any
Person other than the parties hereto and their respective successors and permitted assigns to the
extent contemplated herein.

     6.2 Legend on Securities. The Company and the Stockholders acknowledge and agree that
in addition to any other legend on the certificates representing Securities held by them,
substantially the following legend shall be typed on each certificate evidencing any of the
Securities held at any time by any Stockholder:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN
REGISTERED PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
OR OTHER JURISDICTION. ABSENT SUCH REGISTRATION OR AN EXEMPTION FROM THE REQUIREMENT THEREFOR, NO
TRANSFER OF THESE SHARES OR ANY INTEREST THEREIN MAY BE MADE.

11

 

THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO THE PROVISIONS OF A CERTAIN STOCKHOLDERS
AGREEMENT, INCLUDING CERTAIN RESTRICTIONS ON TRANSFER SET FORTH THEREIN. A COMPLETE AND CORRECT
COPY OF SUCH AGREEMENT IS AVAILABLE FOR INSPECTION AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL
BE FURNISHED UPON WRITTEN REQUEST AND WITHOUT CHARGE.

     6.3 Alon Common Stock.

          (a) Alon Israel understands that any shares of Alon Common Stock that may be issued pursuant
to this Agreement will not be registered under the Securities Act, and will be issued by reason of
a specific exemption from the registration provisions of the Securities Act which depends upon,
among other things, the bona fide nature of the investment intent and the accuracy of Alon Israel’s
representations as expressed herein. Alon Israel understands that such shares will be “restricted
securities” under applicable U.S. federal and state securities laws and that, pursuant to these
laws, Alon Israel must hold such shares indefinitely unless they are registered with the Securities
and Exchange Commission and qualified by state authorities, or an exemption from such registration
and qualification requirements is available. Alon Israel acknowledges that, except pursuant to the
terms of the Registration Rights Agreement, dated as of July 6, 2005, between Alon USA and Alon
Israel, Alon USA has no obligation to register or qualify such shares for resale. Alon Israel
further acknowledges that if an exemption from registration or qualification is available, it may
be conditioned on various requirements, including the time and manner of sale and the holding
period for such Shares, and on requirements relating to the Company which are outside of Alon
Israel’s control, and which Alon USA is under no obligation and may not be able to satisfy.

          (b) Alon Israel acknowledges that Alon USA’s agreement hereunder to issue shares of Alon
Common Stock is made in reliance upon Alon Israel’s representation to Alon USA, which by the its
execution of this Agreement, Alon Israel hereby confirms, that any shares of Alon Common Stock that
may be acquired by Alon Israel hereunder will be acquired for investment for Alon Israel’s own
account, not as a nominee or agent, and not with a view to the resale or distribution of any part
thereof. By executing this Agreement, Alon Israel further represents that it does not presently
have any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant
participations to such Person or to any third Person, with respect to any of such shares. Alon
Israel has not been formed for the specific purpose of acquiring the Shares.

          (c) Alon Israel represents to Alon USA that Alon Israel is an accredited investor as defined
in Rule 501(a) of Regulation D promulgated under the Securities Act.

          (d) Alon Israel acknowledges and agrees that any certificates representing shares of Alon
Common Stock will bear substantially the following legend:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN
REGISTERED PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
OR OTHER JURISDICTION. ABSENT SUCH REGISTRATION OR AN EXEMPTION FROM THE

12

 

REQUIREMENT THEREFOR, NO TRANSFER OF THESE SHARES OR ANY INTEREST THEREIN MAY BE MADE.

          (e) Alon Israel represents that, with respect to any issuance of shares of Alon Common Stock
pursuant to this Agreement, it will satisfy itself as to the full observance of the laws of Israel,
including (i) the legal requirements within Israel for the acquisition of such shares, (ii) any
foreign exchange restrictions applicable to such acquisition, (iii) any governmental or other
consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any,
that may be relevant to the acquisition, holding, redemption, sale, or transfer of such shares.
Alon Israel’s acquisition and continued beneficial ownership of such shares will not violate any
applicable securities or other laws of Israel.

     6.4 Successors and Assigns. The terms and conditions of this Agreement shall inure to
the benefit of and be binding upon the respective successors and permitted assigns of the parties.
Nothing in this Agreement, express or implied, is intended to confer upon any party other than the
parties hereto or their respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

     6.5 Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Texas, regardless of the laws that might otherwise govern under
applicable principles of conflicts of law.

     6.6 Counterparts; Facsimile. This Agreement may be executed and delivered by
facsimile signature and in two or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument.

     6.7 Titles and Subtitles. The titles and subtitles used in this Agreement are used
for convenience only and are not to be considered in construing or interpreting this Agreement.

     6.8 Notices. All notices and other communications given or made pursuant to this
Agreement shall be in writing and shall be deemed effectively given: (a) upon personal delivery to
the party to be notified, (b) five business days after having been sent by certified mail, return
receipt requested, postage prepaid, or (d) two business days after deposit with an internationally
recognized express courier service, specifying same day or next business day delivery, with written
verification of receipt. All communications shall be sent to the respective parties at their
address as set forth on the signature page, or to such address as subsequently modified by written
notice given in accordance with this Section 6.8.

     6.9 Amendments and Waivers. Any term of this Agreement may be amended, terminated or
waived only with the written consent of Alon USA, the Company and the Stockholders.

     6.10 Severability. Whenever possible, each provision or portion of any provision of
this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision or portion of any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such
invalidity, illegality or unenforceability shall not affect the validity, legality or
enforceability of

13

 

any other provision or portion of any provision in such jurisdiction, and this Agreement shall
be reformed, construed and enforced in such jurisdiction in such manner as will effect as nearly as
lawfully possible the purposes and intent of such invalid, illegal or unenforceable provision.

     6.11 Delays or Omissions. No delay or omission to exercise any right, power or remedy
accruing to any party under this Agreement, upon any breach or default of any other party under
this Agreement, shall impair any such right, power or remedy of such non-breaching or
non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an
acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any
waiver of any single breach or default be deemed a waiver of any other breach or default
theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of any party of any breach or default under this Agreement, or any waiver on
the part of any party of any provisions or conditions of this Agreement, must be in writing and
shall be effective only to the extent specifically set forth in such writing. All remedies, either
under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not
alternative.

     6.12 Entire Agreement; Amendment and Restatement. This Agreement constitutes the full
and entire understanding and agreement between the parties with respect to the subject matter
hereof, and any other written or oral agreement relating to the subject matter hereof existing
between the parties are expressly canceled. This Agreement amends and restates the Original
Stockholders Agreement in its entirety.

     6.13 Further Assurances. From and after the date of this Agreement, upon the request
of either Stockholder or the Company, the Company and each Stockholder shall execute and deliver
such instruments, documents and other writings as may be reasonably necessary or desirable to
confirm and carry out and to effectuate fully the intent and purposes of this Agreement and the
transactions contemplated hereby.

     6.14 After-Acquired Securities; New Parties. Whenever any Stockholder becomes the
record or beneficial owner of additional securities of the Company, such securities will be subject
to all of the terms and conditions of this Agreement. The Company will cause Persons not parties
to this Agreement who from time to time receive securities of the Company to be subject to the
terms and conditions of this Agreement.

[Signature Page Follows]

14

 

     IN WITNESS WHEREOF, the parties hereto have caused this Stockholders Agreement to be duly
executed as of the date first set forth above.

	 	 	 	 	 
	 	ALON USA ENERGY, INC.

 	 
	 
	 	By:  	/s/ Jeff D. Morris
 	 
	 	 	Name:  	Jeff D. Morris 	 
	 	 	Title:  	President and CEO 	 
	 

Address:

7616 LBJ Freeway, Suite 300

Dallas, Texas 75251

Attention: General Counsel

	 	 	 	 	 
	 	ALON REFINING LOUISIANA, INC.

 	 
	 
	 	By:  	/s/ Jeff D. Morris
 	 
	 	 	Name:  	Jeff D. Morris 	 
	 	 	Title:  	Vice President 	 
	 

Address:

7616 LBJ Freeway, Suite 300

Dallas, Texas 75251

Attention: General Counsel

	 	 	 	 	 
	 	STOCKHOLDERS:

ALON LOUISIANA HOLDINGS, INC.

 	 
	 
	 	By:  	/s/ Jeff D. Morris
 	 
	 	 	Name:  	Jeff D. Morris 	 
	 	 	Title:  	President and CEO 	 
	 

Address:

7616 LBJ Freeway, Suite 300

Dallas, Texas 75251

Attention: General Counsel

15

 

	 	 	 	 	 
	 	ALON ISRAEL OIL COMPANY, LTD.

 	 
	 	By:  	/s/ David Wiessman
 	 
	 	 	Name:  	David Wiessman 	 
	 	 	Title:  	President 	 
	 

Address:

Europark (France Building)

P.O.B. 10

Kibbutz Yakum, Israel 60972

Attention: General Counsel

16

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