UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): May 3, 2011
ALON USA ENERGY, INC.
(Exact Name of Registrant as Specified in Charter)
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Delaware
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001-32567
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74-2966572
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(State or Other
Jurisdiction
of
Incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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7616 LBJ Freeway, Suite 300
Dallas, Texas 75251
(Address of Principal Executive Offices) (Zip Code)
Registrants telephone number, including area code:
(972) 367-3600
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under
any of the following provisions (
see
General Instruction A.2. below):
o
Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of
Certain Officers; Compensatory Arrangements of Certain Officers.
Director Grants
On May 3, 2011, the Company granted 2,005 restricted shares of the Companys common stock to
each of Avraham Shochat, Ron W. Haddock and Dr. Zalman Segal, each an independent director of the
Company, pursuant to Section 12 of the Companys Amended and Restated 2005 Incentive Compensation
Plan (the Plan). The shares vest in equal installments on the first, second and third
anniversaries of the date of grant. These awards are evidenced by agreements in the form adopted by
the Company for the purpose of evidencing grants of this type, which form was attached as Exhibit
10.1 to the Current Report on Form 8-K filed by the Company with the Securities and Exchange
Commission on August 5, 2005, and is incorporated by reference into this Item 5.02.
Executive Officer Grants
On May 3, 2010, the Company approved a grant of 500,000 restricted stock units to Paul Eisman,
the Companys President and Chief Executive Officer, pursuant to the terms of the Plan. Each
restricted stock unit represents the right to receive a share of common stock of the Company. All
restricted stock units will vest on March 1, 2015, provided that Mr. Eisman remains in the
continuous employ of the Company. The award is evidenced by a grant agreement in the form adopted
by the Company, which form is attached as Exhibit 10.1 to this Current Report on Form 8-K, and is
incorporated by reference into this Item 5.02.
On May 3, 2010, the Company approved grants of restricted stock to Messrs. David Wiessman,
Joseph Israel, Shai Even, Alan Moret and Michael Oster, each executive officers of the Company,
pursuant to the terms of the Plan. Pursuant to the terms of the award agreements, Messrs.
Wiessman, Israel and Even will each be granted 50,000 shares of restricted stock a year for five
years beginning May 10, 2011 and Messrs. Moret and Oster will each be granted 40,000 shares of
restricted stock a year for five years beginning May 10, 2011,
provided that each grantee remains in
the continuous employ of the Company. The shares of restricted stock to Messrs. Wiessman, Israel
and Even will vest as follows: 25,000 per year on
May 10
th
of 2012, 2013, 2014 and 2015
and the remaining 150,000 on May 10, 2016. The shares of restricted stock to Messrs. Moret and
Oster will vest as follows: 20,000 per year on
May 10
th
of 2012, 2013, 2014 and 2015 and
the remaining 140,000 on May 10, 2016. These awards are evidenced by agreements in the form
adopted by the Company, which form is attached as Exhibit 10.2 to this Current Report on Form 8-K,
and is incorporated by reference into this Item 5.02.
Item 5.07. Submission of Matters to a Vote of Security Holders.
The Annual Meeting of Stockholders of the Company was held on May 3, 2011 at 9:00 a.m.,
Dallas, Texas time, at The Frontiers of Flight Museum, 6911 Lemmon Avenue, Dallas, Texas 75209. A
total of 50,521,299 shares of the Companys common stock were present or represented by proxy at
the meeting, representing more than 91% of the Companys shares
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outstanding as of the March 22,
2011 record date. The matters submitted for a vote and the related results are as follows:
Proposal 1
: To elect nine* directors to serve until the 2012 annual meeting or
until their respective successors are elected and have been qualified.
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Broker Non-
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Director Nominee
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Votes For
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Votes Withheld
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Votes
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David Wiessman
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44,064,616
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2,538,032
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3,786,152
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Itzhak Bader
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46,552,148
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182,999
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3,786,152
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Boaz Biran
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43,535,582
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3,199,565
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3,786,152
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Shlomo Even
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44,281,086
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2,454,061
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3,786,152
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Ron W. Haddock
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46,587,673
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147,474
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3,786,152
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Jeff D. Morris
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44,059,141
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2,676,006
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3,786,152
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Yeshayahu Pery
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46,549,638
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185,509
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3,786,152
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Zalman Segal
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46,597,776
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137,371
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3,786,152
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Avraham Shochat
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46,590,776
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144,371
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3,786,152
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*
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Mr. Avinadav Grinshpon was nominated by the Board of Directors but notified the Board on
April 27, 2011 that he would not stand for election.
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Proposal 2
: To approve the issuance of shares of Alons common stock to Alon Israel
Oil Company, Ltd. upon conversion of, or as dividend payments on, the shares of 8.50% Series
A Convertible Preferred Stock held by Alon Israel Oil Company, Ltd.:
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Broker Non
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Votes For
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Votes Against
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Votes Abstained
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Votes
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46,616,847
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77,394
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40,906
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3,786,152
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Proposal 3
: To approve the issuance of shares of Alons common stock upon exercise
of the Warrants to purchase shares of Alons common stock held by certain shareholders of
Alon Israel Oil Company, Ltd. and their affiliates:
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Broker Non
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Votes For
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Votes Against
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Votes Abstained
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Votes
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46,576,557
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119,551
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39,039
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3,786,152
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Proposal 4
: To hold an advisory vote on executive compensation:
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Broker Non
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Votes For
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Votes Against
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Votes Abstained
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Votes
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44,294,717
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2,378,112
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62,318
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3,786,152
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Proposal 5
: To hold an advisory vote on the frequency of the advisory vote on
executive compensation:
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Broker Non
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1 Year
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2 Years
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3 Years
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Abstain
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Votes
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3,378,170
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58,175
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43,248,771
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45,031
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3,786,152
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Proposal 6
: To ratify the appointment of KPMG LLP as Alons independent registered
public accounting firm for 2011:
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Votes For
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Votes Against
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Votes Abstained
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50,265,269
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190,759
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65,271
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Pursuant to the foregoing votes, the nine directors nominees listed above were elected to
serve on the Companys Board of Directors and Proposals 2, 3, and 6 were approved. Based on the
results of Proposal 5 the Company will hold an advisory vote on executive compensation every three
years.
Item 9.01. Financial Statements and Exhibits.
(d)
Exhibits
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Exhibit
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Number
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Description
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10.1
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Award Agreement between the Company and Paul Eisman, dated May 5,
2011.
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10.2
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Form of Award Agreement relating to Executive Officer Restricted
Stock Grants pursuant to the Alon USA Energy, Inc. 2005 Amended
and Restated Incentive Compensation Plan.
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4
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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ALON USA ENERGY, INC.
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/s/ Sarah Braley Campbell
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Sarah Braley Campbell
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Secretary
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Date: May 9, 2011
INDEX TO EXHIBITS
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Exhibit
Number
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Description
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10.1
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Award Agreement between the Company and Paul Eisman, dated May 5,
2011.
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10.2
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Form of Award Agreement relating to Executive Officer Restricted
Stock Grants pursuant to the Alon USA Energy, Inc. 2005 Amended
and Restated Incentive Compensation Plan.
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Exhibit
10.1
ALON USA ENERGY, INC.
AMENDED AND RESTATED 2005 INCENTIVE COMPENSATION PLAN
AWARD AGREEMENT
This Award Agreement is entered into this 5
th
day of May, 2011 (the Grant Date),
between Paul Eisman (the Participant) and Alon USA Energy, Inc., a Delaware corporation (the
Company).
WHEREAS, Participant is an employee of the Company or one of its Subsidiaries, and a Senior
Officer within the meaning of the Alon USA Energy, Inc. Amended and Restated 2005 Incentive
Compensation Plan (the Plan); and
WHEREAS, the grant of Restricted Stock Units evidenced by this agreement (the Agreement) was
authorized by a resolution of the Board of Directors of the Company (the Board).
1.
Grant
.
Subject to and upon the terms, conditions and restrictions set forth in this Agreement and in
the Plan, which is incorporated herein by reference, the Company hereby grants to the Participant
on the Grant Date 500,000 Restricted Stock Units. Each Restricted Stock Unit represents the right
to receive one share of common stock of the Company (Common Stock) upon the vesting of the
Restricted Stock Unit. This Agreement constitutes an Evidence of Award under the Plan.
2.
Voting Rights of Participant
.
The Participant will have no voting rights with respect to the Restricted Stock Units.
3.
Dividend Rights and Dividend Equivalent Payments.
Except as provided in this Section, the
Participant will have no right to receive dividends with respect to the Restricted Stock Units.
From and after the Grant Date, the Participant will be entitled to receive, whenever a cash
dividend is paid on shares of Common Stock , an amount of cash equal to the product of (A) the
per-share amount of the dividend paid and (B) the Dividend Share Amount, set forth in the table
below for the period in which the dividend is paid (as determined below) (the Dividend Equivalent
Payment), provided the Participant has not received the shares of Common Stock underlying the
Restricted Stock Units in accordance with Section 6 hereof or otherwise forfeited the Restricted
Stock Units in accordance with Section 5 hereof.
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Dividend Share
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Period
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Amount
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From the Grant Date through March 1, 2012
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100,000
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From March 1, 2012 through March 1, 2013
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200,000
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From March 1, 2013 through March 1, 2014
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300,000
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From March 1, 2014 through March 1, 2015
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400,000
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All Dividend Equivalent Payments will be made no later than 10 days after dividends are paid on the
underlying Common Stock. Notwithstanding the foregoing, Participant shall receive within 10 days
of the Grant Date a Dividend Equivalent Payment for the dividend paid on the Common Stock in the
first quarter of 2011 in an amount of cash equal to the product of (A) $.04 per share and (B)
100,000.
4.
Restrictions on Transfer
. The Restricted Stock Units may not be transferred, sold,
pledged, exchanged, assigned or otherwise encumbered or disposed of by the Participant; provided,
however, that the Participants interest in the Restricted Stock Units may be transferred by will
or the laws of descent and distribution. Any purported transfer, encumbrance or other disposition
of the Restricted Stock Units will be null and void, and the other party to any such purported
transaction will not obtain any rights to or interest in the Restricted Stock Units.
5.
Vesting of Awards
.
(a)
Restricted Stock Units
. All 500,000 Restricted Stock Units granted to Participant
under this Agreement will vest on March 1, 2015 (the RSU Vesting Date), provided the Participant
remains in the continuous employ of the Company and its Subsidiaries during the period from the
Date of Grant to the RSU Vesting Date.
For purposes of this Agreement, the continuous employment of the Participant with the Company
and its Subsidiaries will not be deemed to have been interrupted, and the Participant will not be
deemed to have ceased to be an employee of the Company and its Subsidiaries, by reason of the
transfer of the Participants employment among the Company and its Subsidiaries or a leave of
absence approved by the Companys Executive Chairman of the Board.
(b)
Involuntary Termination, Termination for Good Reason, Death and Disability
.
Notwithstanding the provisions of Section 5(a) and (b), the non-vested Restricted Stock Units will
vest in full upon (i) the involuntary termination of the Participants employment by the Company
and its Subsidiaries for a reason other than Cause, (ii) the Participants termination of
employment with the Company and its Subsidiaries for Good Reason, or (iii) the Participants
termination of employment with the Company and its Subsidiaries due to the death or permanent and
total disability of the Participant, as determined by the Committee. Upon the occurrence of any of
these events, the vested Restricted Stock Units will be settled in Common Stock as provided in
Section 6 by the Participant or, in the event of the Participants death or disability, by the
Participants legal representative.
(c)
Change in Control
. Notwithstanding the provisions of Section 5(a), (b) or (c),
the following vesting rules shall apply in connection with a Change in Control: (i) if the
Participant does not receive an offer of continued employment on similar terms from the Company or
its Subsidiaries (or any successors or affiliates) in connection with a Change in Control (for a
reason other than Cause), all non-vested Restricted Stock Units will fully vest immediately prior
to the Change in Control; (ii) if the Participants employment with the Company and its
Subsidiaries (and any successors or affiliates) is involuntarily terminated without Cause following
a Change in Control, all non-vested Restricted Stock Units will fully vest upon such termination;
and (iii) if the Participant remains employed by the Company or its Subsidiaries (or any successors
or affiliates) for a period of one year following a Change in
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Control, all non-vested Restricted Stock Units with fully vest on the first anniversary of the
Change in Control.
(d)
Forfeiture
. In the event the Participant terminates employment with the Company
and its Subsidiaries for any reason other than disability, death, involuntary termination by the
Company other than for Cause or termination by the Participant for Good Reason, the Restricted
Stock Units will be forfeited immediately and the Participant will not be entitled to any Common
Stock or Dividend Equivalent Payments hereunder.
6.
Settlement of Restricted Stock Units
. At such time as the Restricted Stock Units vest as
provided in this Agreement, shares of Common Stock underlying such Restricted Stock Units will be
transferred to the Participant no later than 20 days after vesting, except as provided in this
Section. The shares of Common Stock underlying the Restricted Stock Units will be transferred to
the Participant by the Companys transfer agent at the direction of the Company. At such time as
the Restricted Stock Units vest, the Company will direct the transfer agent to forward all such
shares of Common Stock to the Participant, except in the event the Participant has notified the
Company of his election to satisfy any tax obligations by surrender of a portion of such shares, in
which case the transfer agent will be directed to forward the remaining balance of shares after the
amount necessary for such taxes has been deducted.
7.
[Intentionally Left Blank.]
8.
Taxes and Withholding
. To the extent that the Company is required to withhold any federal,
state, local or foreign taxes in connection with the issuance of any Common Shares or other
securities pursuant to this Agreement, it will be a condition to the transfer of the Common Shares
that the Participant will pay such taxes or make provisions that are satisfactory to the Company
for the payment thereof. The Participant may elect to satisfy all or any part of any such
withholding obligation by retention by the Company of a portion of the Common Shares that are
transferred to the Participant hereunder, and the Common Shares so retained will be credited
against any such withholding obligation at the Market Value per Share on the date of such issuance
or transfer. However, in no event may the Participant elect to have a number of Common Shares
withheld in excess of the number of Common Shares required to satisfy the Companys minimum
statutory tax withholding obligation.
9.
Compliance with Law
. The Company will comply with all applicable federal and state
securities laws; provided, however, notwithstanding any other provision of this Agreement, the
Company will not be obligated to issue any Common Shares or other securities pursuant to this
Agreement if the issuance thereof would result in a violation of any such law.
10.
Definitions
. Capitalized terms used but not defined in this Agreement will have the
meanings ascribed to such terms in the Plan. For purposes of this Agreement, the terms set forth
below will have the following meanings:
(a) Cause means (i) the Participants conviction of a felony or a misdemeanor where
imprisonment is imposed for more than 30 days; (ii) the Participants commission of any act of
theft, fraud, dishonesty, or falsification of any employment or Company records; (iii) the
Participants improper disclosure of confidential information of the
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Company; (iv) any intentional action by the Participant having a material detrimental
effect on the Companys reputation or business; (v) any material breach by the Participant of this
Agreement or the Participants employment agreement with the Company or one of its Subsidiaries,
which breach is not cured within ten (10) business days following receipt by the Participant of
written notice of such breach; (vi) the Participants unlawful appropriation of a corporate
opportunity; or (vii) the Participants intentional misconduct in connection with the performance
of any of the Participants 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.
(b) Change in Control means the occurrence after the date of this Agreement of any of the
following events:
(i) any person (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other
than one or more Permitted Holders, is or becomes the beneficial owner (as defined in Rules 13d-3
and 13d-5 under the Exchange Act, except that for purposes of this clause (i) such person will be
deemed to have beneficial ownership of all shares that any such person has the right to acquire,
whether such right is exercisable immediately or only after the passage of time), directly or
indirectly, of more than 50% of the total voting power of the Voting Stock of the Company; or
(ii) the merger or consolidation of the Company with or into another person or the merger of
another person with or into the Company, or the sale of all or substantially all the assets of the
Company (determined on a consolidated basis) to another person (other than, in all such cases, a
person that is controlled by the Permitted Holders), other than a transaction following which (A)
in the case of a merger or consolidation transaction, (1) holders of securities that represented
100% of the Voting Stock of the Company immediately prior to such transaction own directly or
indirectly at least a majority of the voting power of the Voting Stock of the surviving person in
such merger or consolidation transaction immediately after such transaction and in substantially
the same proportion to each other as before the transaction or (2) immediately after such
transaction the Permitted Holders beneficially own, directly or indirectly, at least a majority of
the voting power of the Voting Stock of the surviving person in such merger or consolidation
transaction immediately after such transaction and (B) in the case of a sale of assets transaction,
the transferee assumes the obligations of the Company under this Agreement and either (1) is or
becomes a Subsidiary of the transferor of such assets or (2) is or becomes a person a majority of
the total voting power of the Voting Stock of which is beneficially owned, directly or indirectly,
by the Permitted Holders; or
(iii) the adoption of a plan relating to the liquidation or dissolution of the Company.
(c) Good Reason means (i) without the Participants prior written consent, the Company
reduces Participants base compensation or the percentage of the Participants base compensation
established as the Participants maximum target bonus percentage for purposes of the Companys
annual cash bonus plan, (ii) any material breach by the Company or its
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Subsidiaries of this Agreement or the Participants employment agreement with the Company or
one of its Subsidiaries, which breach is not cured within ten (10) business days following receipt
by the Company of written notice of such breach; and (iii) without the Participants prior written
consent, the Company requires the Participant to be based at an office or location that is more
than 35 miles from the location at which the Participant was based on the Date of Grant, other than
in connection with reasonable travel requirements of the Companys business.
(d) Market Value per Share means, at any date, the closing sale price of the Common Stock on
that date (or, if there are no sales on the date, the last preceding date on which there was a
sale) on the principal national securities exchange or in the principal market on or in which the
Common Stock is traded. If there is no regular public trading market for the Common Stock, the
Market Value per Share will be the fair market value of a share of Common Stock, without discount
for minority interest, illiquidity or restrictions on transfer, as determined in good faith by
agreement of the Participant and the Board; provided that if no agreement is reached within 30
days, the fair market value of a share of Common Stock will be determined by an independent,
recognized investment bank, accounting firm or business valuation company mutually agreed to by the
parties (the Appraiser) and whose determination of Market Value per Share will be conclusive and
binding. The costs of the Appraiser will be borne equally by the Participant and the Company.
(e) Permitted Holders means Alon Israel Oil Company, Ltd., Bielsol Investments (1987) Ltd.,
and Tabris Investments Inc.
11.
General Provisions
.
(a) The Company may assign any of its rights and obligations under this Agreement. Any
assignment of rights and obligations by the Participant requires the Companys prior written
consent. This Agreement, and the rights and obligations of the parties hereunder, will be binding
upon and inure to the benefit of their respective successors, assigns, heirs, executors,
administrators and legal representatives.
(b) The parties agree to execute such further documents and instruments and to take such
further actions as may be reasonably necessary to carry out the purposes and intent of this
Agreement.
(c) The titles, captions and headings of this Agreement are included for ease of reference
only and will be disregarded in interpreting or construing this Agreement. Unless otherwise
specifically stated, all references herein to sections and exhibits will mean sections and
exhibits to this Agreement.
(d) This Agreement may be executed in any number of counterparts, each of which when so
executed and delivered will be deemed an original, and all of which together will constitute one
and the same agreement.
(e) Whenever possible, each provision or portion of any provision of this Agreement will 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,
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illegality or unenforceability will not affect the validity, legality or enforceability of any
other provision or portion of any provision in such jurisdiction, and this Agreement will 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.
(f) This Agreement may be executed and delivered by facsimile and upon such delivery the
facsimile signature will be deemed to have the same effect as if the original signature had been
delivered to the other party.
(g) This Agreement may be amended as provided in the Plan, provided all such amendments will
be in writing. Any amendment to the Plan will be deemed to be an amendment to this Agreement to
the extent that the Plan amendment is applicable hereto; provided, however, that no amendment will
adversely affect the rights of the Participant under this Agreement without the Participants
consent. No amendment of or waiver of, or modification of any obligation under this Agreement will
be enforceable unless set forth in a writing signed by the party against which enforcement is
sought. Any amendment effected in accordance with this section will be binding upon all parties
hereto and each of their respective successors and assigns. No delay or failure to require
performance of any provision of this Agreement will constitute a waiver of that provision as to
that or any other instance. No waiver granted under this Agreement as to any one provision herein
will constitute a subsequent waiver of such provision or of any other provision herein, nor will it
constitute the waiver of any performance other than the actual performance specifically waived.
(h) It is intended that that any amounts payable under this Agreement and the Committees
exercise of authority or discretion hereunder comply with the provisions of Code Section 409A so as
not to subject the Participant to the payment of the additional tax, interest and any tax penalty
which may be imposed under Code Section 409A. Reference to Code Section 409A will also include any
proposed, temporary or final regulations, or any other guidance promulgated with respect to such
Section by the U.S. Department of the Treasury or the Internal Revenue Service. In particular, to
the extent Restricted Stock Units vest and the event causing the Restricted Stock Units to vest is
an event that does not constitute a permitted distribution under Code Section 409A and the
settlement of the Restricted Stock Units would not constitute short term deferral within the
meaning of Code Section 409A, then issuance of the Common Stock will be made, to the extent
necessary to comply with the provisions of Code Section 409A, to the Participant on the earlier of
(a) the Participants separation from service with the Company; provided, however, if the
Participant is a specified employee (within the meaning of Code Section 409A), the date of
issuance of the Common Stock will be the date that is six months after the date of the
Participants separation from service, (b) the seventh anniversary of the Date of Grant, or (c) the
Participants death. Notwithstanding the foregoing, no particular tax result for the Participant
with respect to any income recognized by the Participant in connection with this Agreement is
guaranteed, and the Participant will be responsible for any taxes, penalties and interest imposed
on the Participant in connection with this Agreement.
(i) This Agreement is made under, and will be construed in accordance with, the laws of the
State of Delaware.
- 6 -
12.
Entire Agreement
. This Agreement and the documents referred to herein constitute the
entire agreement and understanding of the parties with respect to the subject matter of this
Agreement, and supersede all prior understandings and agreements, whether oral or written, between
or among the parties hereto with respect to the specific subject matter hereof.
[Remainder of page intentionally left blank]
-7 -
The Participant hereby accepts and agrees to be bound by all the terms and conditions of the
Plan and this Agreement. The Committee, as constituted from time to time, will, except as
expressly provided otherwise herein, have the right to determine any questions that arise in
connection with this Agreement.
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ALON USA ENERGY, INC.
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By:
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/s/ David Wiessman
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Name:
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David Wiessman
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Title:
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Executive Chairman of the Board of
Directors
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ACCEPTED:
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/s/ Paul Eisman
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Signature of Participant
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Exhibit
10.2
ALON USA ENERGY, INC.
RESTRICTED STOCK AWARD AGREEMENT
WHEREAS, ________________________ (the Participant) is an employee of Alon USA Energy, Inc.,
a Delaware corporation (the Company) or one of its Subsidiaries, and a Participant within the
meaning of the Alon USA Energy, Inc. Amended and Restated 2005 Incentive Compensation Plan (the
Plan);
WHEREAS, the grant of restricted shares evidenced by this agreement (the Agreement) was
authorized by a resolution of the Board of Directors of the Company (the Board).
NOW, THEREFORE, subject to and upon the terms, conditions, and restrictions set forth in this
Agreement and in the Plan, a copy of which is attached hereto and incorporated herein by reference,
the Company hereby agrees, provided the Participant remains continuously employed by the Company
and its Subsidiaries until such date, to grant to the Participant restricted shares of Common Stock
(upon the effectiveness of each such grant, the Restricted Shares) in accordance with the
following schedule on the respective dates of grant (each a Date of Grant):
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Number of Restricted
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Shares Granted
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Date of Grant
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May 10, 2011
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May 10, 2012
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May 10, 2013
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May 10, 2014
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May 10, 2015
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Terms not defined in this Agreement have the meanings set forth in the Plan.
1.
Rights of Grantee
.
(a) The Restricted Shares will be fully paid and nonassessable and will be represented by a
certificate or certificates registered in the name of the Participant and bearing a legend
referring to the restrictions hereinafter set forth. Except as otherwise provided herein, the
Participant will have all of the rights of a stockholder with respect to the Restricted Shares;
provided, however, that any additional shares of Common Stock or other securities that the
Participant may become entitled to receive pursuant to a stock dividend, stock split, combination
of shares, recapitalization, merger, consolidation, separation or reorganization or any other
change in the capital structure of the Company will be subject to the same restrictions as the
Restricted Shares. In order to reflect the effect of any such event, appropriate adjustments will
be made to the number and/or class of shares which Participant is eligible to receive pursuant to
this Agreement.
(b) The Participant will not be entitled to vote the Restricted Shares or to receive dividends
with respect to the Restricted Shares. For purposes of this Agreement, the
continuous employment of the Participant with the Company and its Subsidiaries will not be
deemed to have been interrupted, and the Participant will not be deemed to have ceased to be an
employee of the Company and its Subsidiaries, by reason of the transfer of the Participants
employment among the Company and its Subsidiaries or a leave of absence approved by the Companys
Executive Chairman of the Board.
2.
Restrictions on Transfer
. The Restricted Shares and the right to receive future grants of
Restricted Shares may not be transferred, sold, pledged, exchanged, assigned or otherwise
encumbered or disposed of by the Participant, except to the Company, until the Restricted Shares
become vested in accordance with Section 3 below; provided, however, that the Participants
interest in the Restricted Shares may be transferred by will or the laws of descent and
distribution. Any purported transfer, encumbrance or other disposition of the Restricted Shares
before they become vested will be null and void, and the other party to any such purported
transaction will not obtain any rights to or interest in the Restricted Shares.
3.
Vesting of Restricted Shares
.
(a)
Vesting
. The Participant will acquire a vested interest in, and the restrictions
on transfer set forth in Section 2 will lapse with respect to, Restricted Shares in accordance with
the schedule set forth below (each date being referred to as a Vesting Date), subject to the
Participants remaining in the continuous employ of the Company and its Subsidiaries during the
period from the Date of Grant to the Vesting Date. Notwithstanding the foregoing, if the
Participant is subject to the Alon USA Energy, Inc. Securities Trading Policy (the Policy) on the
Vesting Date and the Vesting Date is not a trading date under the Policy, the Restricted Shares
will vest on the first day following the Vesting Date that is a trading date under the Policy,
provided the Participant remains continuously employed by the Company and its Subsidiaries until
such date.
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Number of Restricted
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Shares Vested
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Vesting Date
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_______Restricted Shares originally granted on May 10, 2011
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May 10, 2012
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_______Restricted Shares originally granted on May 10, 2012
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May 10, 2013
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_______Restricted Shares originally granted on May 10, 2013
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May 10, 2014
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_______Restricted Shares originally granted on May 10, 2014
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May 10, 2015
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______ (all remaining Restricted Shares)
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May 10, 2016
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(b)
Full Vesting Upon Certain Events
. Notwithstanding the provisions of Section 3(a),
the Participant will acquire a vested interest in, and the restrictions on voting and the right to
receive dividends set forth in Section 1(b) and the restrictions on transfer set forth in
Section 2 will lapse with respect to, all of the granted but nonvested Restricted Shares in
the event of (i) the involuntary termination of the Participants employment with the Company and
its Subsidiaries for a reason other than Cause or (ii) the Participants termination of employment
with the Company and its Subsidiaries by the Participant for Good Reason, in each case within the
24-month period following the occurrence of a Change in Control.
(c)
Forfeiture
. In the event the Participant terminates employment with the Company
and its Subsidiaries for any reason other than disability, death, involuntary termination by the
Company other than for Cause or termination by the Participant for Good Reason, the unvested
Restricted Shares will be forfeited immediately and the certificate(s) representing the unvested
Restricted Shares will be cancelled as well as any right to grants that are not yet effective.
4.
Participants Put Right
. If at any time there is no longer a regular public trading market
for the Common Stock, the Participant will have the right to require the Company to purchase any or
all of the vested Restricted Shares in accordance with this Section 4, provided the Participant has
held such shares for at least six months. The Participants right to require the Company to
purchase vested Restricted Shares may be exercised by delivering a written notice (the Put
Notice) to the Company that sets forth the Participants irrevocable undertaking to sell to the
Company the number of vested Restricted Shares stated in such Put Notice. The purchase price per
share to be paid for the Participants vested Restricted Shares will be the Market Value per Share
on the closing date of the purchase and sale contemplated by this Section 4, which will occur on
the 30
th
day following delivery of the Put Notice or such earlier date as may be agreed
to by the parties. At such closing, the Company will deliver the aggregate purchase price to the
Participant in cash, against delivery by the Participant of certificates representing the vested
Restricted Shares being purchased, free and clear of all liens, claims and encumbrances and
endorsed in good form for transfer.
5.
Retention of Stock Certificates by the Company
. The certificates representing the
Restricted Shares will be held in custody by the Secretary of the Company, together with a stock
power endorsed in blank by the Participant, until the Restricted Shares vest in accordance with
this Agreement. In order for this Agreement to be effective, the Participant must sign and return
such stock power to the attention of the Secretary of the Company.
6.
Taxes and Withholding
. To the extent that the Company is required to withhold any federal,
state, local or foreign taxes in connection with the issuance or vesting of any restricted or
nonrestricted Common Shares or other securities pursuant to this Agreement, and the amounts
available to the Company for such withholding are insufficient, it will be a condition to the
issuance or vesting of the Common Shares, as the case may be, that the Participant will pay such
taxes or make provisions that are satisfactory to the Company for the payment thereof. The
Participant may elect to satisfy all or any part of any such withholding obligation by retention by
the Company of a portion of the nonforfeitable Common Shares that are issued or transferred to the
Participant hereunder, and the Common Shares so retained will be credited against any such
withholding obligation at the Market Value per Share on the date of such issuance or transfer.
However, in no event may the Participant elect to have a number of Common Shares withheld in excess
of the number of Common Shares required to satisfy the Companys minimum statutory tax withholding
obligation.
7.
Compliance with Law
. The Company will make reasonable efforts to comply with all
applicable federal and state securities laws; provided, however, notwithstanding any other
provision of this Agreement, the Company will not be obligated to issue any restricted or
nonrestricted Common Shares or other securities pursuant to this Agreement if the issuance thereof
would result in a violation of any such law.
8.
Definitions
. For purposes of this Agreement, the terms set forth below will have the
following meanings:
(a) Cause means (i) the Participants conviction of a felony or a misdemeanor where
imprisonment is imposed for more than 30 days; (ii) the Participants commission of any act of
theft, fraud, dishonesty, or falsification of any employment or Company records; (iii) the
Participants improper disclosure of confidential information of the Company; (iv) any intentional
action by the Participant having a material detrimental effect on the Companys reputation or
business; (v) any material breach by the Participant of this Agreement or the Participants
employment agreement with the Company or one of its Subsidiaries, which breach is not cured within
ten (10) business days following receipt by the Participant of written notice of such breach; (vi)
the Participants unlawful appropriation of a corporate opportunity; or (vii) the Participants
intentional misconduct in connection with the performance of any of the Participants 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.
(b) Change in Control means the occurrence after the date of this Agreement of any of the
following events:
(i) any person (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other
than one or more Permitted Holders, is or becomes the beneficial owner (as defined in Rules 13d-3
and 13d-5 under the Exchange Act, except that for purposes of this clause (i) such person will be
deemed to have beneficial ownership of all shares that any such person has the right to acquire,
whether such right is exercisable immediately or only after the passage of time), directly or
indirectly, of more than 50% of the total voting power of the Voting Stock of the Company; or
(ii) individuals who on the date hereof constituted the Board (together with any new directors
whose election by the Board or whose nomination for election by the shareholders of the Company was
approved by a vote of a majority of the directors of the Company then still in office who were
either directors on the date hereof or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of the Board then in office; or
(iii) the merger or consolidation of the Company with or into another person or the merger of
another person with or into the Company, or the sale of all or substantially all the assets of the
Company (determined on a consolidated basis) to another person (other than, in all such cases, a
person that is controlled by the Permitted Holders), other
than a transaction following which (A) in the case of a merger or consolidation transaction,
(1) holders of securities that represented 100% of the Voting Stock of the Company immediately
prior to such transaction own directly or indirectly at least a majority of the voting power of the
Voting Stock of the surviving person in such merger or consolidation transaction immediately after
such transaction and in substantially the same proportion to each other as before the transaction
or (2) immediately after such transaction the Permitted Holders beneficially own, directly or
indirectly, at least a majority of the voting power of the Voting Stock of the surviving person in
such merger or consolidation transaction immediately after such transaction and (B) in the case of
a sale of assets transaction, the transferee assumes the obligations of the Company under this
Agreement and either (1) is or becomes a Subsidiary of the transferor of such assets or (2) is or
becomes a person a majority of the total voting power of the Voting Stock of which is beneficially
owned, directly or indirectly, by the Permitted Holders; or
(iv) the adoption of a plan relating to the liquidation or dissolution of the Company.
(c) Good Reason means (i) without the Participants prior written consent, the Company
reduces Participants base compensation or the percentage of the Participants base compensation
established as the Participants maximum target bonus percentage for purposes of the Companys
annual cash bonus plan, (ii) any material breach by the Company or its Subsidiaries of this
Agreement or the Participants employment agreement with the Company or one of its Subsidiaries,
which breach is not cured within ten (10) business days following receipt by the Company of written
notice of such breach; and (iii) without the Participants prior written consent, the Company
requires the Participant to be based at an office or location that is more than 35 miles from the
location at which the Participant was based on the date hereof, other than in connection with
reasonable travel requirements of the Companys business.
(d) Market Value per Share means, at any date, the closing sale price of the Common Stock on
that date (or, if there are no sales on the date, the last preceding date on which there was a
sale) on the principal national securities exchange or in the principal market on or in which the
Common Stock is traded. If there is no regular public trading market for the Common Stock, the
Market Value per Share will be the fair market value of a share of Common Stock , without discount
for minority interest, illiquidity or restrictions on transfer, as determined in good faith by
agreement of the Participant and the Board; provided that if no agreement is reached within 30
days, the fair market value of a share of Common Stock shall be determined by an independent,
recognized investment bank, accounting firm or business valuation company mutually agreed to by the
parties (the Appraiser) and whose determination of Market Value per Share shall be conclusive and
binding. The costs of the Appraiser will be borne equally by the Participant and the Company.
(e) Permitted Holders means Alon Israel Oil Company, Ltd., Bielsol Investments (1987) Ltd.,
and Tabris Investments Inc.
9.
General Provisions
.
(a) The Company may assign any of its rights and obligations under this Agreement. Any
assignment of rights and obligations by the Participant requires the Companys
prior written consent. This Agreement, and the rights and obligations of the parties
hereunder, will be binding upon and inure to the benefit of their respective successors, assigns,
heirs, executors, administrators and legal representatives.
(b) Any and all notices required or permitted to be given to a party pursuant to the
provisions of this Agreement will be in writing and will be effective and deemed to provide such
party sufficient notice under this Agreement on the earliest of the following: (i) at the time of
personal delivery, if delivery is in person; (ii) at the time of transmission by facsimile,
addressed to the other party at its facsimile number specified herein (or hereafter modified by
subsequent notice to the parties hereto), with confirmation of receipt made by both telephone and
printed confirmation sheet verifying successful transmission of the facsimile; (iii) one business
day after deposit with an express overnight courier for United States deliveries, or two business
days after such deposit for deliveries outside of the United States; or (iv) three business days
after deposit in the United States mail by certified mail (return receipt requested) for United
States deliveries. All notices for delivery outside the United States will be sent by facsimile or
by express courier. All notices not delivered personally or by facsimile will be sent with postage
and/or other charges prepaid and properly addressed to the party to be notified at the address or
facsimile number set forth below the signature lines of this Agreement or at such other address or
facsimile number as such other party may designate by one of the indicated means of notice herein
to the other party hereto. Notices by facsimile will be machine verified as received.
(c) The parties agree to execute such further documents and instruments and to take such
further actions as may be reasonably necessary to carry out the purposes and intent of this
Agreement.
(d) The titles, captions and headings of this Agreement are included for ease of reference
only and will be disregarded in interpreting or construing this Agreement. Unless otherwise
specifically stated, all references herein to sections and exhibits will mean sections and
exhibits to this Agreement.
(e) This Agreement may be executed in any number of counterparts, each of which when so
executed and delivered will be deemed an original, and all of which together will constitute one
and the same agreement.
(f) Whenever possible, each provision or portion of any provision of this Agreement will 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 will not affect the validity, legality or enforceability of any other provision or
portion of any provision in such jurisdiction, and this Agreement will 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.
(g) This Agreement may be executed and delivered by facsimile and upon such delivery the
facsimile signature will be deemed to have the same effect as if the original signature had been
delivered to the other party.
(h) Any amendment to the Plan will be deemed to be an amendment to this Agreement to the
extent that the Plan amendment is applicable hereto; provided, however, that no amendment will
adversely affect the rights of the Participant under this Agreement without the Participants
consent. No amendment of or waiver of, or modification of any obligation under this Agreement will
be enforceable unless set forth in a writing signed by the party against which enforcement is
sought. Any amendment effected in accordance with this section will be binding upon all parties
hereto and each of their respective successors and assigns. No delay or failure to require
performance of any provision of this Agreement will constitute a waiver of that provision as to
that or any other instance. No waiver granted under this Agreement as to any one provision herein
will constitute a subsequent waiver of such provision or of any other provision herein, nor will it
constitute the waiver of any performance other than the actual performance specifically waived.
(i) It is intended that that any amounts payable under this Agreement and the Committees
exercise of authority or discretion hereunder comply with the provisions of Code Section 409A and
the Treasury regulations relating thereto so as not to subject the Participant to the payment of
the additional tax, interest and any tax penalty which may be imposed under Code Section 409A.
Reference to Code Section 409A will also include any proposed, temporary or final regulations, or
any other guidance promulgated with respect to such Section by the U.S. Department of the Treasury
or the Internal Revenue Service. Notwithstanding the foregoing, no particular tax result for the
Participant with respect to any income recognized by the Participant in connection with this
Agreement is guaranteed, and the Participant will be responsible for any taxes, penalties and
interest imposed on the Participant in connection with this Agreement.
10.
Entire Agreement
. This Agreement and the documents referred to herein constitute the
entire agreement and understanding of the parties with respect to the subject matter of this
Agreement, and supersede all prior understandings and agreements, whether oral or written, between
or among the parties hereto with respect to the specific subject matter hereof.
[Remainder of page intentionally left blank]
The Participant hereby accepts and agrees to be bound by all the terms and conditions of the
Plan and this Agreement. The Committee, as constituted from time to time, will, except as
expressly provided otherwise herein, have the right to determine any questions that arise in
connection with this Agreement.
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ALON USA ENERGY, INC.
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By
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Name:
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Paul Eisman
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Title:
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President
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ACCEPTED:
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Signature of Participant
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