Exhibit 10.6
STOCKHOLDERS AGREEMENT
THIS STOCKHOLDERS AGREEMENT (the
“ Agreement ”) is made as of the 3rd day
of July, 2008 (the “ Effective Date ”),
by and between 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 the date hereof, Alon
Israel is purchasing 80,000 shares of the Company’s
Series A Preferred Stock, par value $1,000.00 per share (the
“ Preferred Stock ”), pursuant to that
certain Series A Stock Purchase Agreement dated as of the date
hereof by and between the Company and Alon Israel (the “
Purchase Agreement ”);
B. The Purchase Agreement
contemplates that this Agreement be executed by the parties hereto
on even date therewith, and the parties are willing to execute this
Agreement and be bound by the provisions hereof; and
C. The parties hereto desire to
agree upon the terms on which the securities of the Company, now or
hereafter outstanding and held by them, will be held and
transferred.
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.
“ 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.
“ Change of
Control ” means either of the following events:
(a) the failure, for any reason,
of Alon USA 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
(a) 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.
“ Alon Common
Stock ” shall mean the shares of common stock, par
value $0.01 per share, of Alon USA Energy, Inc., a Delaware
corporation.
“ 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 this Agreement and (ii) the closing sale price per
share of the Alon Common Stock on the New York Stock Exchange on
the date of this Agreement.
“ 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.
“ Par Value
” means $1,000 per share of Series A 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.
“ 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
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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 all of the
shares of Preferred Stock then 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(c) 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
”). 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 a Change of
3
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 the 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 the Share Exchange. Any Share Exchange elected
pursuant to this Section 2.3(a) shall be consummated effective as
of the Business Day immediately preceding the Change of Control
Date (the “ Change of Control Exchange Date
”).
(b) If
a Share Exchange effected pursuant to Section 2.3(a) 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 the Share
Exchange effective as of the Mandatory Exchange Date.
(c) 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.
(d) On
the Change of Control 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 all of the shares
of Preferred Stock then held by Alon Israel and/or any of its
Permitted Transferees (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 the
quotient obtained by dividing (i) the sum of (A) the
aggregate Par Value of the shares of Preferred Stock then held by
Alon Israel and/or any of its Permitted Transferees, and
(B) the aggregate Series A Dividends accrued but unpaid
on such shares of Preferred Stock, whether or not declared,
together with any other dividends declared but unpaid on such
shares of Preferred Stock, by (ii) the Alon Share Price (the
“ Exchange Shares ”); provided that in
lieu of any fractional share of Alon Common Stock that would
otherwise by payable by operation of this subsection, Alon USA
shall pay to the Person entitled ther
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