Document:

EX-10.23

 

Exhibit 10.23

Execution Copy 

STOCK PURCHASE AGREEMENT

between

COFFEYVILLE GROUP HOLDINGS, LLC,

and

COFFEYVILLE ACQUISITION LLC

Dated as of May 15, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 1.
	 	DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 
	SECTION 2.
	 	PURCHASE OF SHARES	 	 	14	 
	2.1
	 	Purchase and Sale	 	 	14	 
	 
	 	 	 	 	 	 
	SECTION 3.
	 	PURCHASE PRICE	 	 	14	 
	3.1
	 	The Purchase Price	 	 	14	 
	3.2
	 	Working Capital and Other Amounts	 	 	16	 
	 
	 	 	 	 	 	 
	SECTION 4.
	 	CLOSING	 	 	18	 
	4.1
	 	Closing Date	 	 	18	 
	4.2
	 	Transfer of Shares; Closing Deliveries	 	 	18	 
	 
	 	 	 	 	 	 
	SECTION 5.
	 	SELLER’S REPRESENTATIONS AND WARRANTIES	 	 	19	 
	5.1
	 	Authorization	 	 	19	 
	5.2
	 	Organization	 	 	20	 
	5.3
	 	Capitalization; Equity Interests	 	 	20	 
	5.4
	 	Certain Financial Information; No Undisclosed Liabilities; Off-Balance Sheet Transactions	 	 	21	 
	5.5
	 	Shares; Seller Information	 	 	22	 
	5.6
	 	Title to Real Estate	 	 	22	 
	5.7
	 	Tangible Property	 	 	23	 
	5.8
	 	Litigation	 	 	23	 
	5.9
	 	Legal Compliance	 	 	24	 
	5.10
	 	Consents and Approvals	 	 	24	 
	5.11
	 	Environmental Laws	 	 	24	 
	5.12
	 	Permits	 	 	25	 
	5.13
	 	No Defaults	 	 	26	 
	5.14
	 	Contracts	 	 	26	 
	5.15
	 	Taxes	 	 	27	 
	5.16
	 	No Finder’s Fee	 	 	29	 
	5.17
	 	Intellectual Property	 	 	29	 
	5.18
	 	Employee Benefit Plans	 	 	29	 
	5.19
	 	Labor and Employment	 	 	30	 
	5.20
	 	Absence of Certain Changes or Events	 	 	31	 
	5.21
	 	Affiliate Transactions	 	 	32	 
	5.22
	 	Insurance	 	 	33	 
	5.23
	 	Termination of Earn-Out Obligations	 	 	33	 
	5.24
	 	Indebtedness of the Companies and the Operating Subsidiaries	 	 	33	 
	5.25
	 	CL JV Holdings	 	 	33	 
	5.26
	 	No Further Representations	 	 	33	 
	 
	 	 	 	 	 	 
	SECTION 6.
	 	REPRESENTATIONS AND WARRANTIES OF BUYER	 	 	34	 
	6.1
	 	Authorization for Agreement and Consents	 	 	34	 
	6.2
	 	Organization	 	 	34	 
	6.3
	 	No Violation	 	 	34	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	6.4
	 	Finder’s Fees	 	 	34	 
	6.5
	 	No Litigation	 	 	34	 
	6.6
	 	Buyer’s Financing	 	 	35	 
	6.7
	 	Buyer Awareness and Acknowledgement	 	 	35	 
	 
	 	 	 	 	 	 
	SECTION 7.
	 	COVENANTS	 	 	35	 
	7.1
	 	Access to Records	 	 	35	 
	7.2
	 	HSR Act	 	 	35	 
	7.3
	 	Permits, Consents, etc.	 	 	36	 
	7.4
	 	Conduct of the Business by Seller Pending Closing	 	 	36	 
	7.5
	 	Notification of Certain Events	 	 	36	 
	7.6
	 	Solicitation of Remedial Action	 	 	36	 
	7.7
	 	Insurance	 	 	37	 
	7.8
	 	Financial Statements and Operating Summaries; Capital Expenditure Reports	 	 	37	 
	7.9
	 	Withdrawal of Registration Statement	 	 	37	 
	7.10
	 	Financing	 	 	37	 
	7.11
	 	Non-Solicitation	 	 	38	 
	7.12
	 	Public Announcements	 	 	38	 
	7.13
	 	Termination of Seller-Company Agreements	 	 	39	 
	7.14
	 	Leiber Transactions	 	 	39	 
	7.15
	 	Property Tax Abatement	 	 	39	 
	7.16
	 	Seller as Additional Insured	 	 	39	 
	 
	 	 	 	 	 	 
	SECTION 8.
	 	CONDITIONS PRECEDENT TO BUYER’S OBLIGATIONS	 	 	40	 
	8.1
	 	Representations and Warranties True	 	 	40	 
	8.2
	 	Compliance with Agreement	 	 	40	 
	8.3
	 	HSR Act Filings; Consents and Approvals	 	 	41	 
	8.4
	 	No Adverse Litigation	 	 	41	 
	8.5
	 	Ownership of Subsidiaries	 	 	41	 
	8.6
	 	No Material Adverse Effect	 	 	41	 
	8.7
	 	Termination of Seller-Company Agreements	 	 	41	 
	8.8
	 	Deliveries by Seller	 	 	41	 
	 
	 	 	 	 	 	 
	SECTION 9.
	 	CONDITIONS PRECEDENT TO SELLER’S OBLIGATIONS	 	 	41	 
	9.1
	 	Representations and Warranties True	 	 	41	 
	9.2
	 	Compliance with Agreement	 	 	42	 
	9.3
	 	HSR Act Filings; Consents and Approvals	 	 	42	 
	9.4
	 	Deliveries by Buyer	 	 	42	 
	 
	 	 	 	 	 	 
	SECTION 10.
	 	TITLE COMMITMENT	 	 	42	 
	 
	 	 	 	 	 	 
	SECTION 11.
	 	INDEMNIFICATION	 	 	42	 
	11.1
	 	Obligation of Parties to Indemnify	 	 	42	 
	11.2
	 	Indemnification Amounts	 	 	43	 
	11.3
	 	Indemnification Procedures — Third Party Claims	 	 	44	 
	11.4
	 	Direct Claims	 	 	45	 
	11.5
	 	Survival of Representations and Warranties; Covenants	 	 	46	 
	11.6
	 	Indemnification Thresholds	 	 	46	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	11.7
	 	Treatment of Payments	 	 	46	 
	11.8
	 	Exclusive Remedy	 	 	46	 
	11.9
	 	Specific Performance	 	 	47	 
	 
	 	 	 	 	 	 
	SECTION 12.
	 	TERMINATION	 	 	47	 
	12.1
	 	Termination	 	 	47	 
	12.2
	 	Effect of Termination	 	 	48	 
	 
	 	 	 	 	 	 
	SECTION 13.
	 	MISCELLANEOUS	 	 	48	 
	13.1
	 	Expenses	 	 	48	 
	13.2
	 	Assignment	 	 	48	 
	13.3
	 	Governing Law	 	 	48	 
	13.4
	 	Amendment and Modification	 	 	48	 
	13.5
	 	Notices	 	 	49	 
	13.6
	 	Entire Agreement	 	 	50	 
	13.7
	 	Successors	 	 	50	 
	13.8
	 	Counterparts	 	 	50	 
	13.9
	 	Headings	 	 	50	 
	13.10
	 	Jurisdiction	 	 	50	 
	13.11
	 	Interpretation	 	 	50	 

iii

 

STOCK PURCHASE AGREEMENT

     THIS STOCK PURCHASE AGREEMENT is made and entered into as of May 15, 2005, between COFFEYVILLE
GROUP HOLDINGS, LLC, a Delaware limited liability company (“Seller”), and COFFEYVILLE ACQUISITION
LLC, a Delaware limited liability company (“Buyer”).

RECITALS:

     A. Seller owns all of the issued and outstanding shares of capital stock (the “Shares”) of
Coffeyville Pipeline, Inc. (“Pipeline Inc.”), Coffeyville Refining & Marketing, Inc. (“R&M Inc.”),
Coffeyville Nitrogen Fertilizers, Inc. (“NF Inc.”), Coffeyville Crude Transportation, Inc. (“CT
Inc.”), and Coffeyville Terminal, Inc. (“Terminal Inc.”, and together with Pipeline Inc., R&M Inc.,
NF Inc. and CT Inc., the “Companies”).

     B. In accordance with the terms of this Agreement, Seller desires to transfer and sell to
Buyer and the Companies, and Buyer desires to, and Buyer desires Seller to cause the Companies to,
purchase from Seller, in the aggregate, all of the Shares.

     NOW, THEREFORE, in consideration of the premises and mutual promises, representations,
warranties and covenants contained herein, the parties hereto, intending to be legally bound,
hereby agree as follows:

SECTION 1. DEFINITIONS.

     The following terms used in this Agreement shall have the following meanings:

     “Accounting Expert” is defined in Section 3.1(c)(ii).

     “Action” means any action, hearing, suit, claim, arbitration or proceeding before any
arbitrator or Governmental Authority.

     “Adjustment Payment Date” means the date that is two (2) Business Days following the
determination of the Final Working Capital Amount, the Final Capex Amount and the Final
Indebtedness Amount.

     “Affiliate,” as applied to any Person, means any other Person directly or indirectly
controlling, controlled by, or under common control with, that Person. For the purposes of this
definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled
by” and “under common control with”), as applied to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of that
Person, whether through ownership of voting securities or by contract or otherwise. For purposes
of this definition, a Person shall be deemed to be “controlled by” a Person if such Person
possesses, directly or indirectly, power to vote 10% or more of the securities having ordinary
voting power for the election of directors of such Person.

 

 

     “Agreement” means this Stock Purchase Agreement, as it may be amended from time to time.

     “Allocation” is defined in Section 3.1(c)(i).

     “Allocation Notices” is defined in Section 3.1(c)(ii).

     “Allocation Objection” is defined in Section 3.1(c)(i).

     “Allocation Statement” is defined in Section 3.1(c)(i).

     “Ancillary Documents” means each of the Disclosure Schedule, the Escrow Agreement, the other
agreements and certificates executed and delivered in connection with this Agreement.

     “Applicable Rate” means the prime rate of interest as reported from time to time in the Money
Rates section of the Wall Street Journal.

     “Asset Purchase Agreement” means the Amended and Restated Asset Sale and Purchase Agreement,
dated as of November 4, 2003, between Farmland Industries, Inc. and Coffeyville Resources, LLC, as
such agreement has been amended from time to time and including any and all schedules, exhibits,
certificates and other documents delivered in connection therewith.

     “Assets” shall mean the properties, rights and interests used by the Companies in the
operation of the Business, including specifically, the Facilities, the Gathering System and the
Terminal and all assets, properties, rights and interests related thereto.

     “Business” means the business of the Companies and the Operating Subsidiaries as described in
the Registration Statement and the Financial Statements, including, without limitation, the
existing business, operations, facilities and other assets of the Companies and the Operating
Subsidiaries conducted at or relating to the Facilities, the Gathering System or the Terminal, but
excluding the project involving the construction of two ammonia and UAN plants in the Republic of
Trinidad and Tobago, West Indies as more particularly described in the non-binding memorandum of
understanding, dated December 15, 2004 by and among Coffeyville Resources LLC and certain of its
Affiliates and the Government of the Republic of Trinidad and Tobago and certain of its Affiliates
(which memorandum of understanding will be assigned by Coffeyville Resources, LLC or its Affiliates
to Seller or its designee prior to the Closing).

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

     “Buyer” is defined in the introductory paragraph.

     “Capex
Amount” means the difference, whether positive or negative, of (a) the aggregate of the
amounts set forth on Schedule 1(c) for the period commencing April 1, 2005 and ending during the
month in which the Closing occurs (pro rated for the number of days elapsed in the case of the
calendar month during which the Closing occurs), and (b) the amount of Capital Expenditures
actually made in cash by the Companies and the Operating Subsidiaries

2

 

during the period commencing on April 1, 2005 and ending on the Business Day immediately prior
to the Closing Date (excluding any expenditures for non-scheduled maintenance and repairs
(including any Capital Expenditures made as a result of the fire that occurred at the refinery
during the second quarter of this calendar year)). For the avoidance of doubt, payments under the
Plains Agreement shall not be treated as Capital Expenditures.

     “Capital Expenditures” means capital expenditures determined in accordance with GAAP.

     “CL JV Holdings” means CL JV Holdings, LLC, a Delaware limited liability company.

     “Closing” means the closing of the transaction contemplated by this Agreement.

     “Closing Date” is defined in Section 4.1.

     “Closing Date Amount” is equal to (i) the Preliminary Purchase Price (as such amount may be
reduced pursuant to footnote * on Schedule 3.1(a)) minus (ii) the Escrow Amount.

     “Closing Statement” is defined in Section 3.2.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Commitment Letters” is defined in Section 6.6.

     “Companies” is defined in Recital A.

     “Company Intellectual Property” means all Intellectual Property used or held for use by the
Seller, the Companies, or the Operating Subsidiaries in connection with the Business.

     “Contracts” shall mean all oral or written leases, agreements, contracts, arrangements,
commitments, licenses and franchises.

     “Costs of Compliance” shall mean all costs, Capital Expenditures, fees and expenditures of any
kind (other than monetary penalties or fines) associated with attaining or maintaining compliance
with any Environmental Law and all costs, fees and expenditures of any kind required to obtain,
renew or otherwise maintain any Permits, including permits for the “grand fathered” units at the
Facility, or required to settle or resolve any alleged violation of any Environmental Law.

     “Credit Parties” shall mean, collectively, Coffeyville Resources, LLC, Coffeyville Resources
Nitrogen Fertilizers, LLC, Coffeyville Resources Refining & Marketing, LLC, Coffeyville Resources
Crude Transportation, LLC, Coffeyville Resources Pipeline, LLC and Coffeyville Resources Terminal,
LLC.

     “CT Inc.” is defined in Recital A.

     “Decision Notice” is defined in Section 3.2(b)(iii)(B).

3

 

     “Defensible Title” shall mean (i) in the case of an Asset constituting real property, good and
indefeasible title free and clear of all Liens, security interests and encumbrances, subject to and
except for any Permitted Encumbrances and (ii) in the case of an Asset not constituting real
property, good and valid title free and clear of all Liens, security interests and encumbrances,
subject to and except for any Permitted Encumbrances.

     “Disclosure Schedule” means the exhibit attached hereto and made a part hereof containing the
various exceptions to the representations, warranties and covenants of Seller contemplated by the
provisions of this Agreement.

     “Earn-Out Obligations” means any obligations on the part of any of the Companies or any of the
Operating Subsidiaries under Section 3 of the Asset Purchase Agreement.

     “Employee Benefit Plan” means any “employee pension benefit plan” (as defined in Section 3(2)
of ERISA), any “employee welfare benefit plan” (as defined in Section 3(1) of ERISA), and any other
written or oral plan, agreement or arrangement involving direct or indirect benefits, other than
salary, as compensation for services rendered including insurance coverage, cafeteria plan
benefits, severance benefits, disability benefits, deferred compensation, bonuses, stock options,
stock purchase, phantom stock, stock appreciation or other forms of incentive compensation or
post-retirement benefits.

     “Environmental Condition” means any contamination by a Hazardous Substance of surface soils,
subsurface soils, groundwater, leachate or other sediments present on, in, under or migrating from
the Real Estate in violation of, or requiring investigation, remediation and/or implementation
activities under, any Environmental Laws.

     “Environmental Laws” means any and all federal, state and local laws, regulations, rules,
ordinances and/or Orders (unilateral or consent), requirements under permits issued pursuant to any
of the foregoing, common law, and other legally binding requirements or decisions of any
appropriate Governmental Authorities relating to the preservation or protection of the environment
or natural resources, any Hazardous Substance, or any activity involving Hazardous Substances, the
abatement of pollution or protection of human health or safety from exposure to Hazardous
Substances, including without limitation, the Comprehensive Environmental Response, Compensation
and Liability Act, as amended by the Superfund Amendments and Reauthorization Act of 1986, 42
U.S.C. 9601 et seq., the Resource Conservation and Recovery Act; the Solid and Hazardous Waste
Amendments, 42 U.S.C. 6901 et seq., the Emergency Planning and Community Right To Know Act, 42
U.S.C. 11001, et seq., the Federal Water Pollution Control Act, 33 U.S.C. 1251 et seq., the Clean
Air Act, 42 U.S.C. 7401 et seq., the Toxic Substance Control Act, 15 U.S.C. 2601 et seq., the Safe
Drinking Water Act, 42 U.S.C. 300f through 300j, the Occupational Safety and Health Act, 29 U.S.C.
641 et seq., and the Oil Pollution Act 33 U.S.C. 2761, et seq.

     “Environmental Liabilities” shall mean any and all Liabilities, responsibilities, claims,
suits, losses, costs (including remediation, removal, response, abatement, clean-up, investigative,
and/or monitoring costs and any other related costs and expenses, court costs, reasonable
attorneys’, consultants’, expert witness’ and investigative fees and expenses), damages,
assessments, Liens, penalties, fines, prejudgment and post-judgment interest, incurred or

4

 

imposed (a) pursuant to any Order, notice, injunction or similar ruling arising out of or in
connection with any Environmental Law, (b) pursuant to any claim by a Governmental Authority or
other Person for personal injury, death, property damage, damage to natural resources, remediation,
or similar costs or expenses incurred or asserted by such Governmental Authority or other Person to
the extent arising out of a release of Hazardous Substances, or (c) as a result of any
Environmental Conditions.

     “Environmental Permits” shall mean any and all Permits required by applicable Environmental
Laws.

     “Equity Commitment” means (a) options, warrants, convertible securities, exchangeable
securities, subscription rights, conversion rights, exchange rights, or other Contracts that could
require a Person to issue any of its Equity Interests or to sell any Equity Interests it owns in
another Person; (b) any other securities convertible into, exchangeable or exercisable for, or
representing the right to subscribe for any Equity Interest of a Person or owned by a Person; (c)
statutory pre-emptive rights or pre-emptive rights granted under a Person’s organizational
documents; and (d) stock appreciation rights, phantom stock, profit participation, or other similar
rights with respect to a Person.

     “Equity Commitment Letter” is defined in Section 6.6.

     “Equity Interest” means (a) with respect to a corporation, any and all shares of capital
stock, (b) with respect to a partnership, limited liability company, trust or similar Person, any
and all units, interests or other partnership/limited liability company interests, and (c) any
other direct or indirect equity ownership or participation in a Person.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “ERISA Affiliate” means each business or entity which is a member of a “controlled group of
corporations,” under “common control” or an “affiliated service group” with any of the Companies
within the meaning of Sections 414(b), (c) or (m) of the Code, or required to be aggregated with
any Acquired Entity under Section 414(o) of the Code, or is under “common control” with any of the
Companies, within the meaning of Section 4001(a)(14) of ERISA.

     “Escrow Agent” means JPMorgan Chase Bank, N.A. or such other Person mutually agreed to by
Buyer and Seller.

     “Escrow Agreement” means the Escrow Agreement to be entered into at the Closing by and among
Seller, Buyer and the Escrow Agent, the form of which shall contain customary terms, including that
the Escrow Amount shall only be released upon mutual agreement of Buyer and Seller or pursuant to a
court order, and such other terms as shall be agreed upon by each of Seller, Buyer and the Escrow
Agent within ten (10) Business Days after the date hereof.

     “Escrow Amount” means an amount equal to $25 million.

     “Estimated Working Capital Amount” is defined in Section 3.2(a).

5

 

     “Excluded Liabilities” means any Losses relating to, arising from or incurred in connection
with (i) the Leiber Transactions, the Leiber Business or the business and operations of Leiber
Holdings, LLC, a Delaware limited liability company, or any of its direct or indirect Subsidiaries,
including, without limitation, (x) in connection with the organization, operation, redemption of
interests in, dissolution, winding up, liquidation or termination of CL JV Holdings and any
transactions related thereto, (y) any incremental Tax liability of any of the Companies or any of
the Operating Subsidiaries and any incremental loss of Tax attributes of the Companies or any of
the Operating Subsidiaries related thereto, and (z) any Tax liability of any of CL JV Holdings and
any loss of Tax attributes of CL JV Holdings related thereto (excluding, for purposes hereof, any
fees or expenses of accountants for the Companies incurred to restate the financial statements of
the Companies or the Operating Subsidiaries for the purpose of reflecting the Leiber Transactions),
and (ii) the GAF Liabilities. Notwithstanding the foregoing, Excluded Liabilities does not include
any income Taxes attributable to the Leiber Transactions.

     “Facilities” shall mean the Refinery, the Fertilizer Plant and the Companies’ storage
facilities in Caney, Kansas and Coffeyville, Kansas and the related pipelines.

     “Fertilizer Plant” means the fertilizer production facility located in Coffeyville, Kansas.

     “Final Capex Amount” is defined in Section 3.2(b)(ii).

     “Final Indebtedness Amount” is defined in Section 3.2(b)(ii).

     “Final Working Capital Amount” is defined in Section 3.2(b)(ii).

     “Financial Statements” is defined in Section 5.4.

     “Financing Commitment Letter” is defined in Section 6.6.

     “GAAP” means United States generally accepted accounting principles, as consistently applied
by the Companies and the Operating Subsidiaries.

     “GAF Liabilities” means any claims of or Liabilities to GAF Holdings, LLC or any Affiliate
thereof arising in connection with, out of or related to the Asset Purchase Agreement or the
transactions contemplated thereby.

     “Gathering System” means the crude oil gathering and transportation pipelines, right-of-way
agreements, permits, leases, licenses and related assets and/or equipment used in the operation of
what its commonly known as the Companies’ Bartlesville pipeline system, the Companies’ Plainville
pipeline system and the Companies’ ARCO pipeline system (also known as the “Eight Inch pipeline
system”).

     “Governmental Authority” means any federal, state, local, municipal, or other government or
governmental authority of any nature (including any governmental agency, branch, department,
official, or entity and any court or other tribunal); or any body exercising, or entitled to
exercise, any administrative, executive, judicial, legislative, police, or regulatory or power of
any nature, in each case having jurisdiction over Seller, the Companies, the Operating Subsidiaries
or the Business.

6

 

     “Hazardous Substances” means any substances, materials, or wastes defined as a “hazardous
substance,” “extremely hazardous substance,” or “hazardous waste” or terms of similar import under
Environmental Law.

     “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

     “Indebtedness” means, as at any date of determination thereof, (without duplication): (a) all
obligations (other than intercompany obligations) of the Companies and the Operating Subsidiaries
for borrowed money or funded indebtedness or issued in substitution for or exchange for borrowed
money or funded indebtedness; (b) any indebtedness evidenced by any note, bond (other than
financial assurance bonds entered into in the ordinary course of business), debenture or other
similar instrument; (c) the amount of any capital lease obligations that would be required to be
reflected as a liability on the balance sheets of the Companies prepared in accordance with GAAP
(excluding solely for purposes of this definition, the Plains Agreement); (d) any indebtedness
guaranteed by the Companies or the Operating Subsidiaries (excluding intercompany debt and
guarantees, and guarantees by any of the Companies or the Operating Subsidiaries of performance
obligations of any of the Companies or the Operating Subsidiaries); (e) any obligations under, or
associated with, any hedging or swap agreements, including any associated unrealized Losses; (f)
all obligations of the Companies and the Operating Subsidiaries under the Asset Purchase Agreement
for any earn-out or other contingent payment to the extent such obligations become due and payable
as a result of the consummation of the transactions contemplated hereby, excluding any obligations
pursuant to Section 6 of the Letter Amendment to the Asset Purchase Agreement, dated January 30,
2004, between Coffeyville Resources, LLC and Farmland Industries, Inc. (the “Financial Assurances
Letter Agreement”); (g) any interest on the foregoing; and (h) any premiums, prepayment or
termination fees, expenses or breakage costs due upon prepayment of the foregoing.

     “Indebtedness Amount” means the amount of all Indebtedness of the Companies and the Operating
Subsidiaries outstanding immediately prior to the Closing.

     “Indemnified Party” is defined in Section 11.3(a).

     “Indemnifying Party” is defined in Section 11.3(a).

     “Indemnity Reduction Amounts” is defined in Section 11.12.

     “Insurance Policy” is defined in Section 7.16.

     “Intellectual Property” means all intellectual property, including, but not limited to, all
patents and inventors’ certificates, and any reissues, extensions, divisions, continuations and
continuations-in-part; statutory or common law copyrights; design rights; trade secrets;
confidential information; inventions (whether patentable or not); software; all data and
information; ideas; developments; drawings; specifications; bills of material; processes; formulae;
supplier lists; customer lists; marketing information; sales and promotional materials; business
plans; trademarks, tradenames, service marks, and all goodwill associated therewith; domain names;
and all registrations and applications for any of the foregoing.

7

 

     “Inventory” means all ammonia, UAN, crude oil, feed stock, natural gasoline, natural gas
liquids or other hydrocarbon inventory (including, without limitation, in process and finished
products), all consumable chemicals, miscellaneous chemicals, precious metals, all inventories of
precious metal catalysts, and additives, in each case that are owned by the Companies and the
Operating Subsidiaries and used in, processed by or consumed in the Business, wherever located,
including any such items in transit.

     “knowledge,” “known” or words of similar import when used with respect to (i) Buyer, except as
otherwise provided in this Agreement, shall mean the actual knowledge of any fact, circumstance or
condition by the Persons listed on Schedule 1(k), Section (i) and (ii) Seller, shall mean the
actual knowledge of any fact, circumstance or condition by the Persons listed on (x) Schedule 1(k),
Section (ii) after due inquiry of direct reporting Persons to the Persons so listed on Schedule
1(k)(ii) or (y) Schedule 1(k), Section (iii). References herein to “actual knowledge” do not
include imputed or implied knowledge.

     “Legal Requirements” means all laws, including without limitation, statutes, ordinances,
rules, regulations, codes, plans, Orders and settlements thereunder by or of federal, state or
local Governmental Authorities.

     “Leiber Business” means the business conducted by Leiber Holdings, LLC and its Subsidiaries
and all of the assets and liabilities thereof.

     “Leiber Transactions” is defined in Section 7.15.

     “Liabilities” means any and all debts, liabilities, obligations and commitments of any nature
whatsoever, whether known or unknown, asserted or unasserted, fixed, absolute or contingent,
matured or unmatured, accrued or unaccrued, liquidated or unliquidated or due or to become due,
whenever or wherever arising.

     “Lien” means any mortgage, pledge, lien, security interest, charge, claim, option, warrant,
purchase right, encumbrance, conditional sale or other installment sales agreement, title retention
agreement, device or arrangement or transfer for security for the payment of any Indebtedness.

     “Listed Consents” is defined in Section 5.10.

     “Losses” is defined in Section 11.1(a).

     “Material Adverse Change” or “Material Adverse Effect” means any event, circumstance, change
or effect that is material and adverse to (i) the Business taken as a whole, (ii) the assets,
liabilities, properties, results of operations or condition (financial or otherwise) of the
Companies and the Operating Subsidiaries taken as a whole or (iii) the ability of Seller to perform
its obligations hereunder; provided, however, that the term “Material Adverse Change” and “Material
Adverse Effect” shall not include effects, events, circumstances or changes arising out of or
resulting from (a) changes in conditions in the U.S. or global economy or capital or financial
markets generally (whether general, regional or limited to the area in which the Business is
conducted), including changes in interest or exchange rates or fluctuations in the price of or
demand for any of the raw materials or products of the Companies, except to the

8

 

extent the Business or the Companies and the Operating Subsidiaries, taken as a whole, are
affected in a disproportionate manner as compared to other companies operating in the industries in
which the Companies and the Operating Subsidiaries conduct business in PADD II, (b) changes in
general legal, regulatory, political, economic or business conditions or changes in generally
accepted accounting principles that, in each case, generally affect industries in which the
Companies and the Operating Subsidiaries conduct business, except to the extent the Business or the
Companies and the Operating Subsidiaries, taken as a whole, are affected in a disproportionate
manner as compared to other companies operating in such industries in PADD II, or (c) the
negotiation, execution, announcement or performance of this Agreement or the consummation of the
transactions contemplated by this Agreement, including the impact thereof on relationships,
contractual or otherwise, with customers, suppliers, licensors, distributors, lenders, partners or
employees.

     “Material Contracts” is defined is Section 5.14.

     “New Permits” means those Permits that are nontransferable and for which Buyer will be
required to apply.

     “NF Inc.” is defined in Recital A.

     “Notice of Objection” is defined in Section 3.2(b).

     “Operating Subsidiaries” means Coffeyville Resources, LLC, Coffeyville Resources Pipeline,
LLC, Coffeyville Resources Refining & Marketing, LLC, Coffeyville Resources Nitrogen Fertilizers,
LLC, Coffeyville Resources Crude Transportation, LLC and Coffeyville Resources Terminal, LLC.

     “Order” means any judgment, decision, order, writ, charge, injunction, stipulation, ruling,
decree or award by or of a Governmental Authority, excluding any Orders not specifically relating
to the Business and any Orders of general application to the industry in which the Business
operates.

     “Outside Date” is defined in Section 4.1.

     “PADD II” shall mean the Midwest Petroleum Area for Defense District which includes Illinois,
Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio,
Oklahoma, South Dakota, Tennessee and Wisconsin.

     “Permits” means all registrations, licenses, permits, franchises, certificates, approvals,
authorizations, qualifications, entitlements and Orders of Governmental Authorities.

     “Permitted Encumbrances” means (i) all agreements, leases, instruments, documents, Liens and
encumbrances which are described in any Schedule or Exhibit to this Agreement; (ii) any (A)
undetermined or inchoate Liens or charges constituting or securing the payment of expenses which
were incurred incidental to the conduct of the Business or the operation, storage, transportation,
shipment, handling, repair, construction, improvement or maintenance of the Assets and (B)
materialman’s, mechanics’, repairman’s, employees’, contractors’, operators’, warehousemen’s, barge
or ship owner’s and carriers’ Liens or other similar Liens, security

9

 

interests or charges for liquidated amounts arising in the ordinary course of business
incidental to the conduct of the Business or the operation, storage, transportation, shipment,
handling, repair, construction, improvement or maintenance of the Assets, securing amounts the
payment of which is not delinquent and that will be paid in the ordinary course of business or, if
delinquent, that are being contested in good faith; (iii) any Liens for Taxes not yet due or, if
due, that are being contested by Seller and/or the applicable Company or Operating Subsidiary in
good faith in the ordinary course of business provided an appropriate reserve is established
therefor; (iv) any Liens or security interests created by law or reserved in leases, rights-of-way
or other real property interests for rental or for compliance with the terms of such leases,
rights-of-way or other real property interests, provided payment of the debt secured is not
delinquent or, if delinquent, is being contested in good faith in the ordinary course of business;
(v) all prior reservations of minerals in and under or that may be produced from any of the lands
constituting part of the Assets; (vi) all Liens (other than Liens for borrowed money), charges,
leases, easements, restrictive covenants, encumbrances, contracts, agreements, instruments,
obligations, discrepancies, conflicts, shortages in area or boundary lines, encroachments or
protrusions, or overlapping of improvements, defects, irregularities and other matters affecting or
encumbering title to the Assets which individually or in the aggregate are not such as to
materially interfere with or prevent any material operations conducted as a part of the Business;
(vii) any defect that has been cured by the applicable statutes of limitations or statutes for
prescription; (viii) any defect affecting (or the termination or expiration of) any easement,
right-of-way, leasehold interest, license or other real property interest which has been replaced
by a substantially comparable easement, right-of-way, leasehold interest, license or other real
property interest constituting part of the Assets covering substantially the same rights to use the
land or the portion thereof used by Seller, any of the Companies or any of the Operating
Subsidiaries in connection with the Business conducted on the Assets; (ix) rights reserved to or
vested in any Governmental Authority to control or regulate any of the properties used in the
Business or the Business and all laws of such authorities, including any building or zoning
ordinances and all Environmental Laws which individually or in the aggregate are not such as to
materially interfere with or prevent any material operations presently conducted as a part of the
Business; (x) any agreement, contract, lease, easement, instrument, Lien, encumbrance, permit,
amendment, extension or other matter entered into by a party to this Agreement in accordance with
the terms of this Agreement or in compliance with the approvals or directives of the other party
made pursuant to this Agreement which individually or in the aggregate are not such as to
materially interfere with or prevent any material operations presently conducted as a part of the
Business; (xi) all agreements and obligations relating to non-material imbalances with respect to
shipment, transportation, storage, refining or processing of any crude oil, blendstocks, feedstocks
and other raw materials, intermediate stocks or products; (xii) to the extent such items were shown
on the title insurance policies issued in connection with the acquisition and financing effected
pursuant to the Asset Purchase Agreement and similar items in type and magnitude which would appear
on an updated title insurance policy, which similar items, individually or in the aggregate, are
not such as to materially interfere with or prevent any material operations presently conducted as
part of the Business, any Lien, charge, encumbrance, contract, agreement, instrument, obligation,
defect, irregularity or other matter (A) that is shown on the Survey or (B) that is referenced or
reflected in the Title Commitment, to the extent such matter is located on the Survey or can be
reasonably evaluated without review of a survey which locates such matter on the ground which
individually or in the aggregate are not such as to materially interfere with or prevent any
material operations

10

 

presently conducted as a part of the Business; (xiii) any and all matters and encumbrances
(including, without limitation, fee mortgages or ground leases) affecting Seller’s leased real
property, not created or granted by Seller; and (xiv) any of the following: (A) defects in the
early chain of the title consisting of the mere failure to recite marital status in a document or
omissions of successions of heirship proceedings, unless Buyer provides reasonable evidence that
such failure or omission results in another Person’s superior claim of title to the Asset or
relevant portion thereof affected thereby; and (B) defects arising out of lack of corporate
authorization, unless Buyer provides reasonable evidence that such corporate action was not
authorized and results in another Person’s superior claim of title to the Asset or relevant portion
thereof affected thereby.

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

     “Pipeline Inc.” is defined in Recital A.

     “Plains Agreement” means the Pipeline Construction, Operation and Transportation Commitment
Agreement, dated February 11, 2004, between Coffeyville Resources Refining & Marketing, LLC and
Plains Pipeline, L.P., as amended from time to time.

     “Post-Closing Adjustment Amount” means the positive or negative amount equal to (i) (w) the
Final Working Capital Amount minus (x) the Final Capex Amount (if the Final Capex Amount is a
positive number) minus (y) the Final Indebtedness Amount plus (z) the absolute value of the Final
Capex Amount (if the Final Capex Amount is a negative number) minus (ii) (w) the Estimated Working
Capital Amount minus (x) the Capex Amount set forth in the Closing Statement (if the Final Capex
Amount is a positive number) minus (y) the Indebtedness Amount set forth in the Closing Statement
plus (z) the absolute value of the Capex Amount set forth in the Closing Statement (if the Final
Capex Amount is a negative number) .

     “Post-Closing Buyer Calculated Working Capital Amount” is defined in Section 3.2(b)(i).

     “Post-Closing Statement” is defined in Section 3.2(b)(i).

     “Preliminary Purchase Price” is defined in Section 3.1(a).

     “Present Value Benefits” is defined in Section 3.2(c).

     “Present Value Detriments” is defined in Section 3.2(c).

     “Purchase Price” is defined in Section 3.1(a).

     “R&M Inc.” is defined in Recital A.

     “Real Estate” means (i) the real property and interests in real property owned or leased by
the Companies or the Operating Subsidiaries which are specifically identified and legally

11

 

described in Schedule 1(r), including all buildings, fixtures, structures and other
improvements of any kind or nature situated thereon, together with (ii) any easements,
appurtenances, licenses, servitudes, tenancies, options, rights-of-way (including without
limitation, rights to adjacent streets and alleys), licenses, Permits and other real property
rights, privileges and interests, which real property is owned by or leased to any of the Companies
or the Operating Subsidiaries and used by the Companies or the Operating Subsidiaries in the
operation of the Business or as to which one or more of the Companies or the Operating Subsidiaries
has an easement or other property interest.

     “Records” means the Companies’ and the Operating Subsidiaries’ books and records, in any form
or media, operational, maintenance, construction, environmental and technical records relating to
the Business, including without limitation financial statements, Tax Returns and related work
papers and letters from accountants, if any, deeds, title policies, licenses and permits, customer
lists, engineering designs, blueprints, as-built plans, specifications, procedures, reports and
equipment repair, safety, maintenance or service records.

     “Refinery” means the petroleum refinery located in Coffeyville, Kansas.

     “Registration Statement” is defined in Section 7.9.

     “Remediation” means any action taken to investigate, cleanup, remove, abate, mitigate, monitor
or otherwise respond to releases of Hazardous Substances into the environment.

     “Representatives” means, with respect to any Person, such Person’s directors, officers,
employees, agents and other representatives, including legal counsel, accountants and consultants.

     “Required Consents” is defined in Section 7.3.

     “Secured Lender” means the lender parties to that certain Credit Agreement, dated as of May
10, 2004, as amended, among Coffeyville Resources, LLC, Coffeyville Resources Nitrogen Fertilizers,
LLC, Coffeyville Resources Refining & Marketing, LLC, Coffeyville Resources Crude Transportation,
LLC, and Coffeyville Resources Terminal, LLC, Credit Suisse First Boston, acting through its Cayman
Islands Branch, sole lead arranger, syndication agent, documentation agent, term agent and a
lender, Congress Financial Corporation (Southwest), as administrative agent and the lenders party
thereto (the “Credit Agreement”).

     “Securities Act” means the Securities Act of 1933, as amended.

     “Seller” is defined in the introductory paragraph.

     “Seller-Company Agreements” is defined in Section 7.13.

     “Seller Indemnitees” is defined in Section 11.1(b).

     “Shares” is defined in Recital A.

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     “Sites” means the lands on which the Facilities, the Gathering System and the Terminal are
located, as more particularly described on Exhibit A attached hereto.

     “Subsidiary” means, with respect to any Person: (a) any corporation of which more than 50% of
the total voting power of all classes of the Equity Interests entitled (without regard to the
occurrence of any contingency) to vote in the election of directors is owned by such Person
directly or through one or more other Subsidiaries of such Person and (b) any Person other than a
corporation of which at least a majority of the Equity Interest (however designated) entitled
(without regard to the occurrence of any contingency) to vote in the election of the governing
body, partners, managers or others that will control the management of such entity is owned by such
Person directly or through one or more other Subsidiaries of such Person.

     “Supplemental Financial Statements” is defined in Section 7.8.

     “Surveys” is defined in Section 10.

     “Tax” and “Taxes” mean any federal, state, local, or foreign income, gross receipts, license,
payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental
(including taxes under Code Sec. 59A), customs duties, capital stock, franchise, profits,
withholding, social security (or similar), unemployment, disability, real property, personal
property, unclaimed or abandoned property, sales, use, transfer, registration, value added,
alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including (i) any
interest, penalty, or addition thereto, whether disputed or not and (ii) any obligation to
indemnify for or otherwise assume or succeed to the Tax liability of another Person whether by
contract or by operation of law.

     “Tax Return” shall mean any return, report, statement, form or other documentation (including
any additional or supporting material and any amendments or supplements) filed or maintained, or
required to be filed or maintained, with respect to or in connection with the calculation,
determination, assessment or collection of any Taxes.

     “Terminal” means the terminal facilities and refinery located in Phillipsburg, Kansas.

     “Terminal Inc.” is defined in Recital A.

     “Third Party Claim” is defined in Section 11.3(a).

     “Title Commitment” is defined in Section 10.

     “Title Company” is defined in Section 10.

     “Title Policy” is defined in Section 10.

     “Transaction Expenses Amount” means the aggregate unpaid amount as of the Closing Date of
fees, costs and expenses incurred by the Companies or any of the Operating Subsidiaries directly or
on behalf of the Seller in connection with the transactions contemplated hereby (whether incurred
prior to or after the date hereof and whether incurred in connection with this Agreement or
otherwise), including, without limitation, all amounts payable to attorneys,

13

 

accountants, investment advisers and brokers in connection with the transactions contemplated
hereby.

     “Working Capital” means, with respect to a specified date, the amount yielded by the
calculation set forth on Schedule 3.2(a).

SECTION 2. PURCHASE OF SHARES.

     2.1 Purchase and Sale. Subject to the terms and conditions hereof, and subject to the
representations and warranties made herein, on the Closing Date, (i) Seller will sell, assign,
transfer and convey to the Companies a number of Shares of each of the Companies as may be
designated by Buyer immediately prior to the Closing and to the Buyer the remaining Shares of the
Companies and (ii) Buyer will purchase all of Seller’s right, title and interest in and to the
Shares not purchased by the Companies, and the Companies will purchase all of Seller’s right, title
and interest in and to the Shares as designated by Buyer pursuant to the immediately preceding
clause (i) for the aggregate consideration specified in Section 3.1.

SECTION 3. PURCHASE PRICE.

     3.1 The Purchase Price.

          (a) Purchase Price. The aggregate purchase price for the Shares shall be equal to (i)
$565,000,000 (Five Hundred Sixty Five million dollars), minus (ii) (A) the Indebtedness Amount, (B)
the Transaction Expenses Amount and (C) the Capex Amount (if the Capex Amount is a positive
number), plus (iii) the absolute value of the Capex Amount (if the Capex Amount is a negative
number) plus (iv) the Estimated Working Capital Amount (the “Preliminary Purchase Price”). The
Preliminary Purchase Price shall be reduced pursuant to footnote * on Schedule 3.1(a) and shall be
subject to adjustment as provided in Section 3.2 below (as so adjusted, the “Purchase Price”).

          (b) Payments.

               (i) At the Closing, Buyer shall, and shall cause the Companies to, make a cash payment to the
Seller in the amount equal to the Closing Date Amount. The Closing Date Amount shall be paid by
wire transfer of immediately available funds to such account as Seller shall designate not later
than three (3) Business Days prior to the Closing. Buyer agrees to pay the Escrow Amount to the
Escrow Agent at the Closing in cash payable by wire transfer or delivery of other immediately
available funds for deposit into the escrow account.

               (ii) Promptly following final determination of the Final Working Capital Amount, the Final
Capex Amount and the Final Indebtedness Amount, but in no event later than the Adjustment Payment
Date (i) if the Post-Closing Adjustment Amount is greater than zero, then Buyer will pay to Seller
an amount equal to the Post-Closing Adjustment Amount and (ii) if the Post-Closing Adjustment
Amount is less than zero, then Seller will pay to Buyer an amount equal to the absolute value of
the Post-Closing Adjustment Amount. The Post-Closing Adjustment Amount shall be paid by wire
transfer of immediately available funds to such
account as the recipient shall designate not later than five (5) Business Days prior to the
Adjustment Payment Date. Any amounts paid under this Section 3.1(b)(ii) shall be paid together

14

 

with interest thereon at the Applicable Rate calculated from the Closing Date through the date on
which such payment is made.

          (c) Allocation of Purchase Price.

               (i) Not later than thirty (30) days after the date hereof, Buyer shall deliver to Seller a
statement (the “Allocation Statement”) allocating the Purchase Price among the Shares. Seller
shall have five (5) Business Days immediately following delivery of the Allocation Statement during
which to notify Buyer in writing (the “Allocation Objection”) that it believes that the allocation
set forth in the Allocation Statement does not reasonably reflect the relative fair market values
of the Shares. If Seller fails to deliver an Allocation Objection within the time period specified
in the immediately preceding sentence, the allocation set forth in the Allocation Statement shall
be conclusive and binding on Buyer and Seller. If Seller timely submits an Allocation Objection,
then Seller and Buyer shall endeavor in good faith to agree on the calculation of the Allocation
Statement within five (5) Business Days after the date Buyer receives such Allocation Objection.
If Seller and Buyer fail to agree on the calculation of the Allocation Statement within five (5)
Business Days after the date Buyer receives such Allocation Objection, the calculation of the
Allocation Statement will be resolved in the manner described in Section 3.1(c)(ii) below.
Any such allocation determined in accordance with this Section 3.1(c)(i) or Section
3.1(c)(ii) is referred to herein as the “Allocation”.

               (ii) If Buyer and Seller have not agreed on the Allocation Statement within five (5) Business
Days after the date Buyer receives such Allocation Objection, then Buyer and Seller shall refer any
remaining disputes relating thereto for resolution to Ernst & Young LLP, or such other nationally
recognized accounting firm that is mutually acceptable to Buyer and Seller (the “Accounting
Expert”). Within five (5) Business Days of the selection of the Accounting Expert, Buyer and
Seller shall each deliver to the Accounting Expert a notice setting forth in reasonable detail
their calculation of the Allocation Statement (the “Allocation Notices”). Buyer and Seller shall
instruct the Accounting Expert to render its determination within ten (10) Business Days after
receiving the Allocation Notices. The amount determined by the Accounting Expert shall be the
Allocation.

               (iii) The fees and expenses of the Accounting Expert incurred by it in connection with the
activities contemplated by Section 3.1(c)(ii) shall be borne equally by Buyer and Seller.
Each party will bear the costs of its own counsel, witnesses (if any) and employees in connection
with such dispute.

               (iv) Buyer and Seller shall allocate any adjustment to the Purchase Price in the same manner
as the Allocation was prepared. Neither Seller, Buyer nor any of their respective Affiliates shall
file any Tax Return or other document or otherwise take, or agree to take, any position on any Tax
Return which is inconsistent with the Allocation unless otherwise required by law.

          (d) Payoff at Closing for Certain Indebtedness. At or prior to the Closing, Seller
will cause the Companies and the Operating Subsidiaries to terminate all obligations under, or
associated with, any hedging or swap agreements.

15

 

     3.2 Working Capital and Other Amounts.

          (a) Estimated Working Capital Amount and other Amounts. Five (5) Business Days prior
to the expected Closing Date, Seller will deliver to Buyer a written statement (the “Closing
Statement”) setting forth Seller’s good faith estimate (including the calculation thereof and
supporting documentation (including a customary payoff letter with respect to the Credit Agreement
reasonably satisfactory to Buyer), each in reasonable detail) of (i) the Working Capital as of the
close of business on the Business Day prior to Closing Date (the “Estimated Working Capital Amount
”), (ii) the Indebtedness Amount, (iii) the Transaction Expenses Amount and (iv) the Capex Amount,
which statement (including the estimates contained therein) shall be certified by an authorized
officer of, or on behalf of, Seller and be reasonably satisfactory to Buyer. The Estimated Working
Capital Amount shall be calculated by Seller in accordance with Schedule 3.2(a).

          (b) Post-Closing Adjustment.

               (i) As promptly as practicable after the Closing Date, but not later than thirty (30) calendar
days thereafter, Buyer will deliver to Seller a statement (the “Post-Closing Statement”) setting
forth in reasonable detail Buyer’s calculation of (i) the Working Capital as of the close of
business on the Business Day prior to Closing Date based on actual results (the “Post-Closing Buyer
Calculated Working Capital Amount”), (ii) the Indebtedness Amount and (iii) the Capex Amount.

               (ii) Seller shall have twenty (20) Business Days immediately following delivery of the
Post-Closing Statement during which to notify Buyer in writing (the “Notice of Objection”) of any
good faith objections to the calculation of the Post Closing Buyer Calculated Working Capital
Amount, Buyer’s calculation of the Indebtedness Amount, Buyer’s calculation of the Capex Amount or
the Post-Closing Statement, as it affects such calculations, setting forth a reasonably specific
and detailed description of its objections and the dollar amount of each objection. In reviewing
the Post-Closing Statement, Seller shall be entitled to reasonable access at reasonable times and
upon reasonable notice to the work papers, schedules, memoranda and other documents Buyer prepared
or reviewed in determining the Post-Closing Buyer Calculated Working Capital Amount, Buyer’s
calculation of the Indebtedness Amount and Buyer’s calculation of the Capex Amount and thereafter
will have reasonable access to all relevant books and records of the Companies and the Operating
Subsidiaries, all to the extent Seller reasonably requires to complete its review of Buyer’s
calculation of the Post-Closing Buyer Calculated Working Capital Amount and such other amounts. If
Seller fails to deliver a Notice of Objection in accordance with this Section 3.3(b)(ii), the
Post-Closing Statement (together with Buyer’s calculation of the Post-Closing Buyer Calculated
Working Capital Amount, the Indebtedness Amount and the Capex Amount reflected thereon), shall be
conclusive and binding on Buyer and Seller. If Seller submits a Notice of Objection in accordance
with this Section 3.3(b)(ii), then (A) for twenty (20) Business Days after the date Buyer receives
such Notice of Objection, Seller and Buyer will endeavor in good faith to agree on the calculation
of the Post-Closing Buyer
Calculated Working Capital Amount, Buyer’s calculation of the Indebtedness Amount, and Buyer’s
calculation of the Capex Amount as applicable and (B) lacking such agreement, the matter will be
resolved under Section 3.2(b)(iii). Any such amount determined in accordance

16

 

with this Section
3.2(b)(ii) or Section 3.2(b)(iii)(B) is the “Final Working Capital Amount”, the “Final Indebtedness
Amount” or the “Final Capex Amount”, as applicable.

               (iii) Resolution of Disputes.

                    (A) If Buyer and Seller have not agreed on the calculation of the Post-Closing Buyer
Calculated Working Capital Amount, Buyer’s calculation of the Indebtedness Amount, or Buyer’s
calculation of the Capex Amount within the twenty (20) Business Days after delivery of the Notice
of Objection, then either Seller or Buyer may deliver notice to the other party of its intent to
refer any remaining disputes for resolution to the Accounting Expert.

                    (B) Within five (5) Business Days of the selection of the Accounting Expert, Buyer and Seller
will each deliver to the other and to the Accounting Expert a notice setting forth in reasonable
detail their calculation and the amount of the Working Capital, Indebtedness Amount, and Capex
Amount to the extent any such amounts are in dispute (the “Decision Notices”). The Accounting
Expert shall investigate only those items which are in dispute and shall not assign a value to any
item that is (A) greater than the greatest value for such item claimed by either of Buyer or Seller
or (B) lower than the lowest value for such item claimed by either of Buyer or Seller. The
Accounting Expert’s determination shall be based only upon the Decision Notices and other written
submissions of Buyer and Seller requested by the Accounting Expert, and not upon an independent
review by the Accounting Expert. Buyer and Seller shall instruct the Accounting Expert to render
its determination within twenty (20) Business Days after receiving the Decision Notices. The
amount determined by the Accounting Expert shall be the Final Working Capital Amount, the Final
Indebtedness Amount and the Final Capex Amount, as applicable.

                    (C) The fees and expenses of the Accounting Expert shall be paid pro rata by Buyer and Seller
in the inverse proportion to the aggregate amount in dispute and the Accounting Expert’s decision
with respect to the amounts in dispute. Each party will bear the costs of its own counsel,
witnesses (if any) and employees.

          (c) Calculation Methodology. Notwithstanding anything in this Section 3 to the
contrary, except as otherwise provided in Schedule 3.2(a), (i) Working Capital, the Indebtedness
Amount and the Capex Amount shall each be calculated as of the close of business on the Business
Day prior to the Closing Date without giving effect to the consummation of the transactions
contemplated by this Agreement to take place at the Closing, (ii) in determining the Estimated
Working Capital Amount, Working Capital, the Indebtedness Amount and the Capex Amount and in
preparing the Closing Statement, the Estimated Working Capital Amount, Working Capital, the
Indebtedness Amount and the Capex Amount shall be derived from a balance sheet of the Companies and
Operating Subsidiaries on a consolidated basis prepared as if the Business Day prior to the Closing
Date was the normal year end for the Companies and the Operating Subsidiaries, in accordance with
GAAP, on a basis consistent with the balance sheet of the Companies and the Operating Subsidiaries
as of December 31, 2004, (iii) no amount included
in the calculation of the Indebtedness Amount, the Transaction Expenses Amount or accrued but
unpaid Capital Expenditures shall be included in the calculation of the Estimated Working Capital
Amount, and (iv) no amount included in the calculation of the Final Indebtedness

17

 

Amount, the Final Transaction Expenses Amount or accrued but unpaid Capital Expenditures shall be included in the
calculation of the Final Working Capital Amount. If prior to the determination of the Final
Working Capital Amount Buyer determines in its reasonable judgment the present value of the
additional income Tax detriments (the “Present Value Detriments”) and the income Tax benefits (the
“Present Value Benefits”) that will be realized by the Companies attributable to the Leiber
Transactions, the provision for income Taxes included in the Final Working Capital Amount in
respect of the Leiber Transactions shall be equal to the excess, if any, of the Present Value
Detriments over the Present Value Benefits. For purposes of determining the Present Value
Detriments and the Present Value Benefits, such determinations shall be made on the basis that (i)
CL JV holdings and Coffeyville Resources, LLC have valid elections under Section 754 of the Code,
(ii) the applicable discount rate shall be 10% and (iii) the effective tax rate is 40.5%.

SECTION 4. CLOSING.

     4.1 Closing Date. The Closing shall take place on the second Business Day following the
satisfaction or waiver of the conditions specified in Section 8 and Section 9
hereof (other than those conditions that by their nature are to be satisfied at the Closing, and
subject to the satisfaction or waiver of such conditions), but in any event not later than July 15,
2005 (the “Outside Date”), or such other date as the parties may mutually agree upon in writing, at
the office of Akin Gump Strauss Hauer & Feld LLP, 590 Madison Avenue, New York, NY 10022, or at
such other location as shall be mutually agreed; provided that Buyer shall have the right to extend
the date of the Closing to any date occurring on or prior to the Outside Date by providing written
notice to the Seller (the date on which the Closing occurs being the “Closing Date”).

     4.2 Transfer of Shares; Closing Deliveries. At the Closing on the Closing Date, the Parties
shall take the following actions and deliver the following items:

          (a) Seller’s Deliveries to Buyer. Seller will deliver to Buyer:

               (i) Certificates representing the Shares being purchased by the Buyer pursuant hereto, each
such certificate to be duly and validly endorsed in favor of Buyer or accompanied by a separate
stock power duly and validly executed by Seller and otherwise sufficient to vest in Buyer good and
marketable title to such Shares;

               (ii) An Officers’ Certificate, in the form mutually agreed by Buyer and Seller, duly executed
on Seller’s behalf, as to whether each condition specified in Section 8 has been satisfied
in all respects;

               (iii) A Secretary’s Certificate, in the form mutually agreed by Buyer and Seller, duly
executed on Seller’s behalf;

               (iv) The resignation, effective as of the Closing, of each director and officer of the
Companies and the Operating Subsidiaries, to the extent requested by Buyer, and documentation in
form and substance reasonably satisfactory to Buyer evidencing any such resignations;

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               (v) A statement from the Seller in the form specified by Treasury Regulations Section
1.1445-2(b) certifying that the Seller is not a foreign Person; provided, that if Seller fails to
deliver such form, Buyer shall withhold from any payments pursuant to Section 3.1(b) any amounts
required to be withheld under Code Section 1445; and

               (vi) A counterpart of the Escrow Agreement duly executed by Seller.

          (b) Buyer’s Deliveries to Seller. Buyer will deliver to Seller:

               (i) The Closing Date Amount less any amounts paid to Seller by the Companies pursuant to
Section 3.1(b)(i), in cash, via wire transfer;

               (ii) An Officers’ Certificate, in the form mutually agreed by Buyer and Seller, duly executed
on Buyer’s behalf, as to whether each condition specified in Section 9 has been satisfied
in all respects;

               (iii) A Secretary’s Certificate, in the form mutually agreed by Buyer and Seller, duly
executed on Buyer’s behalf; and

               (iv) A counterpart of the Escrow Agreement duly executed by Buyer.

          (c) Buyer’s Delivery to Escrow Agent. Buyer will deliver the Escrow Amount to the
Escrow Agent.

          (d) Companies’ Delivery to Seller. Seller shall cause the Companies to deliver to
Seller the amount contemplated to be paid by the Companies pursuant to Section 3.1(b)(i) in
cash, via wire transfer.

          (e) Seller’s Delivery to the Companies. Seller will deliver to each of the Companies
certificates representing the Shares being purchased by each such Company pursuant hereto, each
such certificate to be duly and validly endorsed in favor of each such Company, respectively, or
accompanied by a separate stock power duly and validly executed by Seller and otherwise sufficient
to vest in each such Company, respectively, good and marketable title to such Shares.

SECTION 5. SELLER’S REPRESENTATIONS AND WARRANTIES.

     Except as set forth in the Disclosure Schedule delivered by Seller (it being agreed that any
matter disclosed in a particular Section of the Disclosure Schedule delivered by Seller shall be
deemed to have been disclosed with respect to any other Sections of this Agreement to the extent
that the relevance of such matter to such other Section is readily apparent from the information
disclosed), Seller represents and warrants to Buyer that the statements contained in this Section 5
are true, correct and complete as of the date of this Agreement, except to the extent
that such statements are expressly made only as of a specified date, in which case Seller
represents and warrants that such statements are correct and complete as of such specified date.

     5.1 Authorization. The execution, delivery and performance by Seller of this Agreement and
each of the Ancillary Documents to which it is a party and the consummation of

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the transactions contemplated hereby and thereby have been duly authorized by all necessary actions of Seller, and
each of this Agreement and the Ancillary Documents to which Seller is a party is, and any documents
or instruments to be executed and delivered by Seller pursuant hereto will be, a legal, valid and
binding obligation of Seller enforceable in accordance with their terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, moratorium, or similar laws from time to time
in effect which affect creditors’ rights generally and by legal and equitable limitations on the
availability of equitable remedies.

     5.2 Organization. Each of Seller and the Operating Subsidiaries is a limited liability company
duly organized, validly existing and in good standing under the laws of the State of Delaware.
Each of the Companies is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware. Each of the Companies and the Operating Subsidiaries is duly
qualified or authorized to do business as a foreign corporation and is in good standing under the
laws of each jurisdiction in which it owns or leases real property and each other jurisdiction in
which the conduct of its business or the ownership of its properties requires such qualification or
authorization, except where the failure to be so qualified, authorized or in good standing could
not reasonably be expected to have a Material Adverse Effect. Seller has all requisite power and
authority to enter into this Agreement and each of the Ancillary Documents to which it is a party
and to sell, assign, transfer and convey the Shares to Buyer under this Agreement.

     5.3 Capitalization; Equity Interests.

          (a) Pipeline Inc.’s authorized capital stock consists of one thousand (1,000) shares, of which
one hundred (100) shares are issued and outstanding. R&M Inc.’s authorized capital stock will
consist of one thousand (1,000) shares, of which one hundred (100) shares will be issued and
outstanding at Closing. NF Inc.’s authorized capital stock will consist of one thousand (1,000)
shares, of which one hundred (100) shares will be issued and outstanding at Closing. CT Inc.’s
authorized capital stock consists of one thousand (1,000) shares, of which one hundred (100) shares
are issued and outstanding. Terminal Inc.’s authorized capital stock consists of one thousand
(1,000) shares, of which one hundred (100) shares are issued and outstanding. All of the Shares:
(a) have been or, at the Closing, will be duly authorized and validly issued, fully paid, and
nonassessable, (b) were or, at the Closing, will be issued in compliance with all applicable state
and federal securities laws, (c) were not or, at the Closing, will not have been issued in breach
of any Equity Commitments, and (d) are or, at the Closing, will be held of record and owned
beneficially by Seller. Disclosure Schedule, Section 5.3(i) lists (x) all Equity Commitments with
respect to any capital stock of the Companies, (y) the exercise price of such Equity Commitments,
and (z) the termination date of such Equity
Commitments. No additional Equity Commitments will arise in connection with the transactions
contemplated hereby. There are no Contracts with respect to the voting or transfer of the Shares.
The Companies are not obligated to redeem or otherwise acquire any of their outstanding capital
stock.

          (b) Coffeyville Resources, LLC has issued and outstanding one hundred (100) Class A membership
units, all of which are held by Pipeline Inc., one hundred (100) Class B membership units, all of
which will be held by R&M Inc. at Closing, one hundred (100) Class C membership units, all of which
will be held by NF Inc. at Closing, one hundred (100) Class D

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membership units, all of which are
held by CT Inc., and one hundred (100) Class E membership units, all of which are held by Terminal
Inc. Coffeyville Pipeline, LLC has issued and outstanding one hundred (100) membership units all
of which are held by Coffeyville Resources, LLC. Coffeyville Refining & Marketing, LLC has issued
and outstanding one hundred (100) membership units all of which are held by Coffeyville Resources,
LLC. Coffeyville Nitrogen Fertilizers, LLC has issued and outstanding one hundred (100) membership
units all of which are held by Coffeyville Resources, LLC. Coffeyville Crude Transportation, LLC
has issued and outstanding one hundred (100) membership units all of which are held by Coffeyville
Resources, LLC. Coffeyville Terminal, LLC has issued and outstanding one hundred (100) membership
units all of which are held by Coffeyville Resources, LLC.

          (c) Except for the Operating Subsidiaries and as set forth on Disclosure Schedule, Section
5.3(ii), at Closing, none of the Companies directly or indirectly will own any capital stock of, or
other equity interests in, any other Person, nor will any of the Companies be a partner or member
of any partnership, limited liability company or joint venture. There are no Equity Commitments
with respect to any of the Operating Subsidiaries.

          (d) As of the date hereof: (A) (i) R&M Inc. holds 55.5% of the outstanding membership
interests in CL JV Holdings, (ii) NF Inc. holds 25% of the outstanding membership interests in CL
JV Holdings, and (iii) The Leiber Group, Inc. holds 19.5% of the outstanding membership interests
in CL JV Holdings; and (B) (i) CL JV Holdings holds 100% of the outstanding membership interests in
Leiber Holdings, LLC and (ii) CL JV Holdings holds 68.73% of the outstanding membership interests
in Coffeyville Resources, LLC.

     5.4 Certain Financial Information; No Undisclosed Liabilities; Off-Balance Sheet Transactions.

          (a) Seller has made available to Buyer true and complete (i) audited financial statements for
the years ended December 31, 2002 and 2003, for the 62 days ended March 2, 2004 and for the 304
days ended December 31, 2004, and (ii) unaudited financial statements for the three (3) months
ended March 31, 2005, with respect to the Companies and the Operating Subsidiaries on a
consolidated basis (the financial statements in (i) and (ii), collectively, the “Financial
Statements”). Except as set forth in Disclosure Schedule, Section 5.4(a), the Financial Statements
have been prepared from, and are in accordance with, the books and records of the Companies and the
Operating Subsidiaries and their respective predecessors, and have been prepared in accordance with
GAAP (except for any inconsistencies specifically
disclosed in the Financial Statements), and fairly present in all material respects the
financial position and results of operations and cash flows of the Companies and the Operating
Subsidiaries, on a consolidated basis, at the dates and for the periods covered thereby. The
Supplemental Financial Statements, when delivered pursuant to Section 7.8, will have been prepared
from, and will be in accordance with, the books and records of the Companies, and will have been
prepared in accordance with GAAP (except (a) for any inconsistencies specifically disclosed in the
Supplemental Financial Statements, and (b) that such Supplemental Financial Statements may not
include footnotes and shall be subject to nonmaterial year-end adjustments), and will fairly
present in all material respects the financial position and results of operations and cash flows of
the Operating Subsidiaries, on a consolidated basis, at the dates and for the periods covered
thereby.

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          (b) Except as set forth in Disclosure Schedule, Section 5.4(b), each of the Companies and the
Operating Subsidiaries has designed and maintains a system of internal controls over financial
reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Securities Exchange Act of 1934, as
amended) sufficient to provide reasonable assurances regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles.

          (c) Except as and to the extent set forth in the Financial Statements and except for future
obligations arising under Contracts, neither the Companies nor any of the Operating Subsidiaries
has any Liabilities except for liabilities incurred in connection with the transactions
contemplated hereby and Liabilities that were incurred in the ordinary course of business
consistent with past practice since December 31, 2004 and that, individually or in the aggregate,
have not had or could not reasonably be expected to have a Material Adverse Effect.

          (d) Except for transactions, arrangements and other relationships otherwise specifically
identified on the Financial Statements, none of the Companies or any of the Operating Subsidiaries
has or is subject to any “Off-Balance Sheet Arrangement” (as defined in Item 303(a)(4)(ii) of
Regulation S-K promulgated under the Securities Act). Since December 31, 2004, none of the
Companies or any of the Operating Subsidiaries has entered into or become subject to any such
Off-Balance Sheet Arrangement.

     5.5 Shares; Seller Information. Seller holds of record and owns beneficially all of the
Shares, free and clear of any Liens, other than the security interests held by the Secured Lender,
which shall be released at Closing. Upon delivery to Buyer and any other purchaser of the Shares
pursuant to Section 2.1 at Closing of certificates representing, in the aggregate, the
Shares, and upon Seller’s receipt of a payment equal to the Closing Date Amount and payment of the
amount described in Section 3.1(b)(i), good and valid title to the Shares will pass to
Buyer and such purchasers, free and clear of any Liens or claims of any kind, other than those
arising from acts of Buyer or its Affiliates. At Closing, the Companies will hold of record and
beneficially all of the Equity Interests in the Operating Subsidiaries, free and clear of any Liens
(other than with respect to the security interests held by the Secured Lender, which shall be
released at Closing). Seller is not a party to any Contract that could require Seller to sell,
transfer, or otherwise dispose of any capital stock of the Companies or the Operating Subsidiaries
(other than this Agreement and other than with
respect to the security interests held by the Secured Lender, which shall be released at Closing).
Seller is not a party to any other Contract with respect to any capital stock of the Companies or
the Operating Subsidiaries (other than with respect to the security interests held by the Secured
Lender, which shall be released at Closing).

     5.6 Title to Real Estate.

          (a) Except as set forth in Disclosure Schedule, Section 5.6, and except for such failures
that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect, Seller has Defensible Title in and to the Real Estate.

          (b) Except as set forth in Disclosure Schedule, Section 5.6 and excluding any representation
or warranty relating to Environmental Laws or Environmental Permits, Seller is

22

 

not aware of and has
not received any written notice to the effect that (i) any betterment assessments have been levied
against, or condemnation or re-zoning proceedings are pending or threatened with respect to the
Sites, or (ii) any zoning, building or similar law or regulation is or will be violated by the
continued maintenance, operation or use of any buildings or other improvements on the Sites as used
and operated on the date of this Agreement. There are no outstanding abatement proceedings or
appeals with respect to the assessment of the Sites or the Facility for the purpose of real
property Taxes, and, except as referenced in the Disclosure Schedule, there is no written agreement
with any Governmental Authority with respect to such assessments or Tax rates on the Sites or the
Facility. The Companies and the Operating Subsidiaries have complied with all reporting and
disclosure obligations necessary to maintain Tax abatements currently applicable to any of their
real properties.

          (c) Disclosure Schedule, Section 5.6 sets forth a true and complete list of material leases
related to the Sites or the Facility where Seller is the lessee or lessor, copies of which have
been made available to Buyer.

          (d) All pipelines, pipeline easements, utility lines, utility easements and other easements,
leaseholds, servitudes and rights-of-way burdening or benefiting the Sites will not at Closing
materially interfere with or prevent any operations conducted on the Sites by the Companies or the
Operating Subsidiaries in the manner operated on the date of this Agreement, except for any
Permitted Encumbrances. Except as set forth in Disclosure Schedule, Section 5.6 and for Permitted
Encumbrances, with respect to any pipeline, utility, access or other easements, servitudes,
licenses, Permits or leaseholds located on or directly serving the Sites or the Facility and owned
or used by the Companies and the Operating Subsidiaries in connection with its operations at the
Sites, to Seller’s knowledge such agreements are in full force and effect and no defaults exist
thereunder and no events or conditions exist which, with or without notice or lapse of time or
both, would constitute a default thereunder or result in a termination, except for such failures,
defaults, terminations and other matters that, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.

     5.7 Tangible Property. Disclosure Schedule, Section 5.7 sets forth a true and complete list of all material tangible
personal property (specifically or by categories), other than the Inventory, wherever located as of
the date of this Agreement. The tangible personal property is sufficient, in all material
respects, for each of the Companies and each of the Operating Subsidiaries to carry on its business
as it is currently conducted.

     5.8 Litigation. Disclosure Schedule, Sections 5.8 and 5.11 set forth each instance in which
any of the Companies or the Operating Subsidiaries is a party or any of their respective Assets or
businesses is bound or, to Seller’s knowledge, is threatened to be made a party to, any Action
which could reasonably be expected to cause a Material Adverse Effect or result in monetary damages
in excess of $250,000.00 individually or $1,000,000.00 in the aggregate or equitable relief, or in
any manner seeks to prevent, enjoin, alter or delay the transactions contemplated by this Agreement
or any of the Ancillary Documents. Except as set forth on Disclosure Schedule, Sections 5.8 and
5.11, there are no outstanding Orders to which any of the Companies or the Operating Subsidiaries
is a party or by which any of the Companies or the Operating Subsidiaries or any of their
respective Assets or businesses is bound by or with any Governmental Authority.

23

 

     5.9 Legal Compliance. Except as set forth in Disclosure Schedule, Sections 5.9 and 5.11,
neither the Companies nor the Operating Subsidiaries are in material violation of any Legal
Requirements (which term for this purpose shall not include Environmental Laws) applicable to the
ownership or operation of the Business. Neither the Companies nor any of the Operating
Subsidiaries has received any written communication from any Governmental Authority that alleges
that any of the Companies or any of the Operating Subsidiaries is not in compliance with Legal
Requirements (which term for this purpose shall not include Environmental Laws) applicable to it,
except where the alleged failure to comply has been substantially resolved or is no longer alleged
by such Governmental Authority.

     5.10 Consents and Approvals. No consent, approval, exemption, waiver, clearance, notification,
authorization of, declaration, filing, or registration with, any Person or Governmental Authority
is required to be made or obtained by any of the Companies or the Operating Subsidiaries in
connection with the execution, delivery, and performance of this Agreement or the Ancillary
Documents and the consummation of the transactions contemplated hereby and thereby, except for (a)
the filing of a notification and report form under the HSR Act or any similar act or law, and the
expiration or earlier termination of the applicable waiting period thereunder, (b) consents,
approvals, authorizations, declarations, or rulings identified in Disclosure Schedule, Sections
5.10 and 5.12, and (c) consents, approvals, authorizations, declarations or rulings the failure of
which to make or obtain, individually or in the aggregate, could not reasonably be expected to have
a Material Adverse Effect (the items contained in clauses (a) and (b) above, collectively, the
“Listed Consents”). Except for the Listed Consents, the execution and delivery of this Agreement
and all other agreements, instruments and documents contemplated hereby and the
Ancillary Documents to which it is a party by Seller and the consummation of the transactions
contemplated hereby and thereby will not conflict with or violate or constitute a breach or default
under (i) the organizational documents of Seller or any of the Companies or Operating Subsidiaries,
(ii) any provision of any mortgage, trust, indenture, Lien, lease, agreement, instrument to which
Seller or any of the Companies or Operating Subsidiaries is bound, or (iii) any Order to which
Seller or any of the Companies or Operating Subsidiaries is bound, except, in the case of clause
(ii), as could not reasonably be expected to have a Material Adverse Effect.

     5.11 Environmental Laws.

          (a) Except as set forth in Disclosure Schedule, Section 5.11, with respect to the ownership
and/or operation of the Business:

               (i) To Seller’s knowledge, the Companies and the Operating Subsidiaries are in material
compliance with, and at all times have complied in all material respects with, applicable
Environmental Laws (including obtaining, complying with and making all legally required filings for
issuance or renewal of Environmental Permits).

               (ii) (a) There are no existing, or, to Seller’s knowledge, threatened Actions, notices of
violation, notices of potential responsibility or information requests resulting from, related to
or arising under any Environmental Law (including any Actions for personal injury, property damage
or injunctive relief relating to exposure to Hazardous Substances, including asbestos) that could
reasonably be expected to result in material Environmental

24

 

Liabilities or Costs of Compliance of
the Companies and the Operating Subsidiaries taken as a whole; and (b) since March 3, 2004, there
have been no Actions brought against or, to Seller’s knowledge, threatened against the Companies,
the Operating Subsidiaries or any of their respective Assets or businesses relating to exposure to
asbestos or the creation or furtherance of or failure to remediate or prevent any toxic torts.

               (iii) To Seller’s knowledge, there are no Environmental Conditions, events, circumstances or
facts that are reasonably likely to give rise to any material Environmental Liability, Cost of
Compliance, or other obligation under any Environmental Laws upon any of the Companies or the
Operating Subsidiaries.

               (iv) To Seller’s knowledge, none of the Companies or the Operating Subsidiaries has disposed
of, transported, or arranged for the transportation of, any Hazardous Substances to any place or
location (a) listed on the National Priorities List or any comparable list of state sites, or (b)
in a manner that has given or is reasonably likely to give rise to material Environmental
Liabilities upon any of the Companies or the Operating Subsidiaries.

          (b) (i) Seller has delivered or made available to Buyer true and complete copies of any
third-party consultant’s reports commissioned by Seller pertaining to material Environmental
Conditions, Environmental Liabilities and/or Costs of Compliance at the Facilities or relating to
the Companies or the Operating Subsidiaries and those environmental reports pertaining to material
environmental issues submitted by the Companies or the Operating Subsidiaries to Governmental
Authorities pertaining to Environmental Conditions,
Environmental Liabilities and/or Costs of Compliance at the Facilities or relating to the
Companies or the Operating Subsidiaries.

               (ii) In Seller’s reasonable judgment, Seller has disclosed to Buyer all material, relevant
information pertaining to material Environmental Conditions, Environmental Liabilities and/or Costs
of Compliance at the Facilities or relating to the Companies or the Operating Subsidiaries.

          (c) The representations and warranties contained in this Section 5.11 and Section 5.12
(including the matters set forth on Disclosure Schedule, Sections 5.11 and 5.12) are the only
representations and warranties made by Seller in this Agreement with respect to Environmental Laws,
Environmental Conditions, Environmental Liabilities and Environmental Permits.

     5.12 Permits. Disclosure Schedule, Section 5.12 sets forth a true and complete list of all of
the Companies’ and the Operating Subsidiaries’ material Permits (other than New Permits) relating
to the Business and the Real Estate. To Seller’s knowledge, complete and accurate copies of each
of the Permits identified in Disclosure Schedule, Section 5.12, have been made available to Buyer
prior to the Closing Date. The Companies have paid or will have paid all fees and charges due
prior to the Closing Date in connection with the Permits, except as disclosed in Disclosure
Schedule, Section 5.12. Except as set forth in Disclosure Schedule, Section 5.12, to Seller’s
knowledge (i) the Companies and the Operating Subsidiaries are in compliance in all material
respects with such Permits; (ii) no proceeding is pending or threatened to revoke any such Permit;
and (iii) the Companies and the Operating Subsidiaries have not received notice

25

 

from any applicable
Governmental Authority that: (A) any such existing Permit will be revoked; and (B) any pending
application for any new such Permit or renewal of any existing Permit will be denied.

     5.13 No Defaults. Except as set forth in Disclosure Schedule, Section 5.13, to
Seller’s knowledge, neither the Companies nor the Operating Subsidiaries are in violation, breach
of, or default under (and no event has occurred that with notice or the lapse of time would
constitute a violation, breach of, or a default by the Companies or the Operating Subsidiaries
under) any term, condition, or provision of (a) any Order, writ or injunction applicable to the
Business, or (b) any Permit necessary for the conduct of the Business by the Companies and the
Operating Subsidiaries in substantially the same manner as currently being conducted.

     5.14 Contracts.

          (a) Except as set forth in Disclosure Schedule, Section 5.14, the Assets do not include any
Material Contracts. “Material Contracts” shall mean any of the following Contracts with respect to
the Assets (excluding any Contracts to be executed and delivered pursuant to this Agreement):

               (i) any indenture, trust agreement, loan agreement, credit agreement, security agreement,
mortgage, note or other Contract under which the Companies or the Operating Subsidiaries have
outstanding indebtedness for borrowed money with respect to the Assets or the Business or with
respect to which the Companies or the Operating Subsidiaries have guaranteed the obligations of any
other Person for borrowed money with respect to the Assets or the Business;

               (ii) any Contract of surety, guarantee or indemnification by the Companies or the Operating
Subsidiaries outside of the ordinary course of business of the Companies and the Operating
Subsidiaries with respect to the Assets;

               (iii) any Contract containing a covenant not to compete with respect to the Assets or the
Business;

               (iv) any Contract between a Company, an Operating Subsidiary and Seller or any Affiliate of
Seller (other than the Companies and the Operating Subsidiaries) relating to the provision of goods
or services to the Sites or the Facility by Seller or any Affiliate of Seller which will survive
the Closing;

               (v) any Contract other than with respect to Inventory, that, to the knowledge of Seller, is
reasonably expected either (1) to commit the Companies or the Operating Subsidiaries to aggregate
expenditures of more than $250,000.00 in any calendar year with respect to the Assets or the
Business or (2) to give rise to anticipated receipts of more than $250,000.00 in any calendar year
with respect to the Assets or the Business;

               (vi) any Contract that, to the knowledge of Seller, is reasonably expected to commit the
Companies or the Operating Subsidiaries to aggregate royalties of more than $150,000.00 in any
calendar year with respect to the Assets or the Business;

26

 

               (vii) any management service, consulting or other similar type of Contract that, to the
knowledge of Seller, is reasonably expected to commit the Companies or the Operating Subsidiaries
to aggregate fees or other compensation of more than $150,000.00 in any calendar year with respect
to the Assets or the Business;

               (viii) any Contract, other than those entered into in the ordinary course of business,
involving the storage, throughput, processing or transportation of crude oil, feedstocks, petroleum
or petroleum products with respect to or involving or affecting the Business;

               (ix) any Contract relating to product exchange transactions with respect to or including or
affecting any of the Assets or the Business;

               (x) any Contract for the purchase or sale of Inventory, other than those entered into in the
ordinary course of business;

               (xi) any Contract by which the Companies or the Operating Subsidiaries grant or receive rights
to any material Company Intellectual Property;

               (xii) any collective bargaining or similar agreements with any union, works council or similar
bodies;

               (xiii) any Contract relating to severance, bonus or similar arrangements with any employees
that become operative in connection with or as a result of the consummation of the transactions
contemplated by this Agreement or any of the Ancillary Documents;

               (xiv) any Contract purporting to bind or impose obligations on any direct or indirect owners
of equity interests of any of the Companies;

               (xv) any Contract which contains hedging or swapping obligations; and

               (xvi) any Contract, material to the Business, assets, condition (financial or otherwise),
financial position or results of operations of the Companies or the Operating Subsidiaries.

          (b) Seller has made available to Buyer true, correct and complete copies of all Material
Contracts. Except (a) for any such breaches, defaults or events as to which requisite waivers or
consents have been or, prior to or at the Closing, will be obtained (true and correct copies of
which shall be provided by Seller to Buyer prior to or at the Closing) or which could not
individually or in the aggregate reasonably be expected to have a Material Adverse Effect or (b) as
disclosed in Disclosure Schedule, Section 5.14, none of the Companies or the Operating Subsidiaries
or, to the knowledge of Seller, any party thereto is in breach of or default under any Material
Contract.

     5.15 Taxes.

          (a) Each of the Companies and the Operating Subsidiaries has filed all Tax Returns that it was
required to file and all such Tax Returns are true, complete and correct in all

27

 

material respects. Each of the Companies and the Operating Subsidiaries has paid all material Taxes required to be
paid. Taxes of the Companies and the Operating Subsidiaries that are not yet due are reserved on
the books and records of the Companies at the close of each fiscal quarter. Each of the Companies
and the Operating Subsidiaries has properly withheld all Taxes required to have been withheld in
connection with amounts paid or owing to any shareholder, employee, creditor, independent
contractor or other third party, and has paid such Taxes to the proper taxing authority when due.
All elections made by the Companies and the Operating Subsidiaries in respect of Taxes were timely
and properly executed and filed. There are no Liens for Taxes on the Assets of the Companies or
the Operating Subsidiaries other than Liens that are Permitted Encumbrances.

          (b) Neither the Companies nor any of the Operating Subsidiaries has waived any statute of
limitations in respect of Taxes or agreed to any extension of time with respect to Tax assessment
or deficiency.

          (c) There is no audit, examination, deficiency or refund litigation pending with respect to
any Taxes of the Companies or the Operating Subsidiaries and no taxing authority
has given written notice of the intent to commence any such examination, audit or litigation.
No taxing authority in a jurisdiction where any of the Companies or any Operating Subsidiary does
not file Tax Returns has made a claim, assertion or threat that any of the Companies or any
Operating Subsidiary is or may be subject to Tax in such jurisdiction.

          (d) Neither the Companies nor any of the Operating Subsidiaries is a party to any Tax
allocation or sharing agreement.

          (e) The Operating Subsidiaries, other than Coffeyville Resources, LLC and CL JV Holdings are
disregarded entities for federal income tax purposes. Each of Coffeyville Resources, LLC and CL JV
Holdings are partnerships for federal income tax purposes.

          (f) None of the Companies nor any of the Operating Subsidiaries has (A) participated in a
“reportable transaction” or “listed transaction” as defined in Treasury Regulation Section
1.6011-4(b) or any analogous or similar state, local or foreign law; (B) been a “distributing
corporation” or “controlled corporation” in a transaction that qualifies under Section 355 of the
Code; or (C) been a member of an affiliated, combined or consolidated group.

          (g) None of the Companies nor any of the Operating Subsidiaries will be required to recognize
for tax purposes in a tax period ending after the Closing Date any income or gain as a result of
(A) using the installment method of accounting, (B) making or being required to make any change in
method of accounting or (C) any pre-paid income.

          (h) None of the Company nor any of the Operating Subsidiaries (A) is a party to any “closing
agreements” described in Section 7121 of the Code (or any comparable provision of state, local or
foreign law) or (B) has requested or received any tax ruling or is a party to any agreements with a
taxing authority that would have continuing effect after the Closing Date except for the agreement
relating to the property tax abatement referred to in Section 7.15.

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          (i) To Seller’s knowledge, the Present Value Benefits arising from the Leiber Transactions are
greater than the Present Value Detriments incurred by the Companies as a result of the Leiber
Transactions.

     5.16 No Finder’s Fee. Except as set forth in Disclosure Schedule, Section 5.16, Seller has not
employed or retained any broker, agent, finder or other party, or incurred any obligation for
brokerage fees, finder’s fees or commissions with respect to the transactions contemplated by this
Agreement, or otherwise dealt with anyone purporting to act in the capacity of a finder or broker
with respect thereto whereby Buyer may be obligated to pay such a fee or commission.

     5.17 Intellectual Property.

          (a) The Company Intellectual Property identified in Disclosure Schedule, Section 5.17
constitutes all of the material Intellectual Property owned or licensed by the Companies and the
Operating Subsidiaries and used in or relating to the Business as currently
conducted which is necessary to conduct the Business immediately upon the Closing in
substantially the same manner as conducted by the Companies and the Operating Subsidiaries prior to
Closing. Seller has no knowledge of any material Intellectual Property that infringes upon,
violates or constitutes the unauthorized use of any rights owned or controlled by any third party,
including any Intellectual Property of any third party.

          (b) The Companies and/or the Operating Subsidiaries own or have the right to use all material
Company Intellectual Property, and the consummation of the transactions contemplated by this
Agreement shall not alter or impair such rights.

          (c) The operation of the Business has not in the past, and does not currently, infringe upon,
violate or constitute the unauthorized use of any rights owned or controlled by any third party,
including any Intellectual Property of any third party, except as could not reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect, and neither the Companies nor
the Operating Subsidiaries have received any notice of any threatened claims alleging any of the
foregoing, including any claim that the Companies or the Operating Subsidiaries must license or
refrain from using any Intellectual Property of a third party.

     5.18 Employee Benefit Plans.

          (a) Disclosure Schedule, Section 5.18 lists each Employee Benefit Plan that the Companies or
the Operating Subsidiaries maintain or to which the Companies or the Operating Subsidiaries
contribute. True and complete copies of the following documents, with respect to each of the
Employee Benefit Plans, have been delivered or made available to Buyer, to the extent applicable:
(i) any plans, all amendments and attachments thereto and related trust documents, insurance
contracts or other funding arrangements, and amendments thereto; (ii) the most recent Forms 5500
and all schedules thereto and the most recent actuarial report, if any; (iii) the most recent
Internal Revenue Service determination letter; and (iv) summary plan descriptions.

          (b) With respect to any employee benefit plan, within the meaning of Section 3(3) of ERISA,
which is subject to ERISA and which is sponsored, maintained or contributed to,

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or has been sponsored, maintained or contributed to, by the Companies or any ERISA Affiliate, (i) no withdrawal
liability, within the meaning of Section 4201 of ERISA, has been incurred, which withdrawal
liability has not been satisfied, (ii) no liability to the Pension Benefit Guaranty Corporation has
been incurred by the Companies or any ERISA Affiliate, which liability has not been satisfied,
(iii) no accumulated funding deficiency, whether or not waived, within the meaning of Section 302
of ERISA or Section 412 of the Code has been incurred, (iv) all contributions (including
installments) to such plan required by Section 302 of ERISA and Section 412 of the Code have been
timely made, (v) no event or transaction has occurred that would reasonably be expected to result
in any of the Companies or any ERISA Affiliate incurring any liability under Title IV of ERISA or
Section 412 of the Code, and (vi) all Employee Benefit Plans intended to qualify under Section 401
of the Code are and at all times have been so qualified and any trusts intended to be exempt from
federal income taxation under Section 501 of the Code are and at all times have been so exempt.
With respect to each Employee Benefit Plan, such plan has been funded and maintained in substantial
compliance with all Laws applicable thereto and the requirements of such plan’s governing
documents.

          (c) No Employee Benefit Plan is under audit or investigation by the Internal Revenue Service,
the Department of Labor, the Pension Benefit Guaranty Corporation or other regulatory agency and,
to the knowledge of the Seller, no such audit or investigation is threatened.

          (d) No payment or benefit which will or may be made by any of the Companies or the Operating
Subsidiaries with respect to any employee will be characterized as an “excess parachute payment”
within the meaning of Section 280G(b)(1) of the Code and the execution of, and performance of the
transactions contemplated by, this Agreement will not (either alone or upon the occurrence of any
additional or subsequent events) constitute an event under any Employee Benefit Plan, trust, loan
or otherwise that will or may result in any payment (whether of severance pay or otherwise),
acceleration, forgiveness of Indebtedness, vesting, distribution, increase in benefits or
obligation to fund benefits with respect to any employee.

          (e) None of the Companies or Operating Subsidiaries (i) has classified any individual as
“independent contractor” or similar status who, according to a Employee Benefit Plan or applicable
law, should have been classified as an employee or of similar status or (ii) has any material
liability, actual or contingent, by reason of any individual who provides or provided services
thereto, in any capacity, being improperly excluded from participating in any Employee Benefit
Plan.

     5.19 Labor and Employment.

          (a) Each of the Companies and the Operating Subsidiaries: (i) is in material compliance with
all applicable federal, state and local laws, rules and regulations (domestic and foreign)
respecting employment, employment practices, labor, terms and conditions of employment and wages
and hours, in each case, with respect to employees; (ii) has withheld all amounts required by law
or by agreement to be withheld from the wages, salaries and other payments to employees; (iii) is
not liable for any arrears of wages or any taxes or any penalty for failure to comply with any of
the foregoing; and (iv) is not liable for any payment to any trust or

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other fund or to any
governmental or administrative authority, with respect to unemployment compensation benefits,
social security or other benefits for employees.

          (b) No work stoppage or labor strike against any of the Companies or the Operating
Subsidiaries by employees is pending or to the knowledge of Seller threatened. None of the
Companies or the Operating Subsidiaries (i) is involved in or to the knowledge of Seller threatened
with any labor dispute, grievance, or litigation relating to labor matters involving any employees,
including, without limitation, violation of any federal, state or local labor, safety or employment
laws (domestic or foreign), charges of unfair labor practices within the meaning of the National
Labor Relations Act or the Railway Labor Act; or (ii) except as set forth in the Disclosure
Schedule, Section 5.19(b), is presently, or has been in the past a party to, or bound by, any
collective bargaining agreement or union contract with respect to employees and no such agreement
or contract is currently being negotiated by any of the Companies or the Operating Subsidiaries.

     5.20 Absence of Certain Changes or Events. 

          (a) Except (i) as set forth on Disclosure Schedule, Section 5.20, or (ii) as contemplated by
this Agreement, since December 31, 2004, (A) the Business of the Companies and the Operating
Subsidiaries has been conducted in the ordinary course of business and (B) there has not been any
event, circumstance, condition or change that, individually or in the aggregate, has had or could
reasonably be expected to have a Material Adverse Effect;

          (b) Without limiting the generality of the foregoing, and except as set forth on Disclosure
Schedule, Section 5.20 or as contemplated by this Agreement, since December 31, 2004, there has not
been any:

               (i) waiver by any Company or any Operating Subsidiary of a right, claim or debt belonging to
any Company or any Operating Subsidiary which is material to the Companies and the Operating
Subsidiaries taken as a whole;

               (ii) establishment by any Company or any Operating Subsidiary of an Employee Benefit Plan or a
general increase in the rate or terms of compensation, benefits, commissions, bonuses, pension or
other Employee Benefit Plans, payments or arrangements payable to or for the benefit of employees
of any Company or any Operating Subsidiary, except (A) pursuant to collective bargaining agreements
or other labor agreements, (B) pursuant to periodic performance reviews and related compensation
and benefit increases, or (C) otherwise in the ordinary course of business;

               (iii) sale, transfer, surrender, relinquishment or disposition of any assets (excluding
Inventory) of any Company or any Operating Subsidiary which is material to the Companies and the
Operating Subsidiaries taken as a whole, other than the disposition of obsolete or damaged assets
in the ordinary course of business;

               (iv) loan, advance or capital contribution to or investment in any Person made by any Company
or any Operating Subsidiary, other than loans, advances, capital contributions to or investments in
any Company, any Operating Subsidiary or CL JV Holdings;

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               (v) creation of any Lien with respect to any portion of the Assets of any Company or any
Operating Subsidiary, other than Permitted Encumbrances arising in the ordinary course of business;

               (vi) acquisition (including by merger, consolidation or acquisition of stock), sale,
assignment or transfer of any business of any Person, Equity Interests in any Person or, other than
in the ordinary course of business, Assets by any Company or any Operating Subsidiary;

               (vii) sale, assignment, transfer, termination (by expiration, consent, Order or otherwise) or
allowance to lapse of any Company’s or Operating Subsidiary’s rights to or under any of the
Intellectual Property, other than in the ordinary course of business;

               (viii) Capital Expenditures or commitments therefor by any Company or any Operating
Subsidiary, other than for maintenance, repair or to keep the Facilities in good working order and
other than in accordance with the capital expenditure budget for 2005 provided to Buyer by Seller;

               (ix) change in the independent accountants, the accounting or Tax methods, practices or
principles of any Company or any Operating Subsidiary;

               (x) waiver or extension of the statute of limitations or limitation period in respect of any
Taxes of any Company or any Operating Subsidiary;

               (xi) entry into any closing agreement or similar agreement with respect to Taxes or any
settlement of any material audit, examination or other claim for Taxes;

               (xii) filing of (A) any Tax Return in a manner inconsistent with past practice, or (B) any
material amended Tax Return or material claim for a Tax refund;

               (xiii) settlement or compromise of any pending or threatened action, suit arbitration or
proceeding, except for (1) settlements involving solely the payment of money and not any equitable
relief, and (2) settlements in favor of any Company or any Operating Subsidiary;

               (xiv) termination of any easement, license, Permit, lease or similar Real Estate right
necessary for the continued operation of the Business of the Companies or any Operating Subsidiary
unless replaced with a substantially comparable easement, license, Permit, lease or similar Real
Estate right; or

               (xv) Contract entered into (or proposal made) by any Company or any Operating Subsidiary to
take any of the types of action described in clauses (i) through (xiv) of this Section 5.20(b).

     5.21 Affiliate Transactions.

          (a) Except as to obligations of any Company or any Operating Subsidiary arising under any of
its respective organizational documents or the Employee Benefit Plans set

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forth on Disclosure Schedule, Section 5.18, Disclosure Schedule, Section 5.21 sets forth a true and complete list of
all Contracts between any Company or any Operating Subsidiary, on the one hand, and Pegasus
Partners II, L.P. or any of its Affiliates (other than the Companies and the Operating
Subsidiaries), on the other hand.

          (b) None of the Assets used by the Companies and the Operating Subsidiaries in connection with
the operation of the Business are owned, leased or licensed by Pegasus Partners II, L.P. or any of
its Affiliates (other than the Companies or the Operating Subsidiaries).

     5.22 Insurance. Disclosure Schedule, Section 5.22 sets forth a true and complete list of all
material policies or binders of insurance in force held by or on behalf of any Company or any
Operating Subsidiary, including the name of the insurer, the nature and amount of coverage and the
annual premiums with respect thereto. None of Seller, any Company or any Operating Subsidiary has
received any notice during the current policy period of a material increase in premiums with
respect to, or cancellation or non-renewal of, any of its insurance policies, and none of Seller,
any Company or any Operating Subsidiary has made any material claim against an insurance policy as
to which the insurer is denying coverage or defending the claim under a reservation of rights. All of such
insurance policies are in full force and effect, and Seller, the Companies and the Operating
Subsidiaries, as applicable, are not in material default under any of such insurance policies.

     5.23 Termination of Earn-Out Obligations. The Financial Assurances Letter Agreement validly and
effectively terminated the Earn-Out Obligations in their entirety upon execution and delivery of
the Financial Assurances Letter Agreement, and none of the Companies or any of the Operating
Subsidiaries has any further Liability with respect to the Earn-Out Obligations.

     5.24 Indebtedness of the Companies and the Operating Subsidiaries. Except as set forth in
Disclosure Schedule, Section 5.24, none of the Companies or the Operating Subsidiaries has any
Indebtedness.

     5.25 CL JV Holdings. At Closing, CL JV Holdings shall not have any Liabilities;
provided, however, that if CL JV Holdings shall have been dissolved prior to the
Closing, the Companies shall not have any Excluded Liabilities.

     5.26 No Further Representations. Buyer may only rely on the information contained in this
Agreement and in the Ancillary Documents. Seller will not be liable with respect to financial
projections or estimates of the future performance of the Companies, the Operating Subsidiaries or
the Business. Except and to the extent set forth in this Agreement or in any of the Ancillary
Documents, Seller does not make any representations or warranties whatsoever (INCLUDING ANY IMPLIED
OR EXPRESS WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR CONFORMITY TO MODELS OR
SAMPLES OF MATERIALS) to Buyer, and Seller hereby disclaims all liability and responsibility for
any representation, warranty, statement or information not included in this Agreement or in any of
the Ancillary Documents that was made, communicated or furnished (orally or in writing) to Buyer or
its Representatives (including any opinion, information, projection or advice that may have been or
may be produced to Buyer by any Representative of Seller or the Companies.)

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SECTION 6. REPRESENTATIONS AND WARRANTIES OF BUYER.

     Buyer represents and warrants to Seller that the statements contained in this Section 6 are
true, correct and complete as of the date of this Agreement, except to the extent that such
statements are expressly made only as of a specified date, in which case Buyer represents and
warrants that such statements are correct and complete as of such specified date.

     6.1 Authorization for Agreement and Consents. The execution, delivery and performance of this
Agreement and each of the Ancillary Documents to which it is a party by Buyer and the consummation
of the transactions
contemplated hereby and thereby will have been duly authorized by all necessary actions of Buyer
prior to the Closing, and each of this Agreement and any Ancillary Documents to which it is a party
is, and any documents or instruments to be executed and delivered by Buyer pursuant hereto will be,
legal, valid and binding obligations of Buyer enforceable in accordance with their terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, moratorium, or similar laws
from time to time in effect which affect creditors’ rights generally and by legal and equitable
limitations on the availability of equitable remedies.

     6.2 Organization. Buyer is a limited liability company, duly organized, validly existing and
in good standing under the laws of the State of Delaware. Buyer has all requisite power and
authority to enter into this Agreement and each of the Ancillary Documents to which it is a party
and to perform its obligations hereunder and thereunder. Except as set forth in Disclosure
Schedule, Section 6.2, neither the execution and delivery of this Agreement or any of the Ancillary
Documents nor the consummation of the transactions contemplated hereby and thereby by Buyer
requires the consent or approval of, the giving of notice to, registration, filing or recording
with or the taking of any other action by Buyer in respect of any Governmental Authority.

     6.3 No Violation. The execution and delivery of this Agreement and all other agreements,
instruments and documents contemplated hereby and the Ancillary Documents to which it is a party by
Buyer and the consummation of the transactions contemplated hereby and thereby will not conflict
with or violate or constitute a breach or default under the organizational documents of Buyer or
any provision of any mortgage, trust indenture, Lien, lease, agreement, instrument, or Order to
which Buyer is bound.

     6.4 Finder’s Fees. Buyer has not employed or retained any broker, agent, finder or other party
or incurred any obligation for brokerage fees, finder’s fees or commissions with respect to the
transactions contemplated by this Agreement, or otherwise dealt with anyone purporting to act in
the capacity of a finder or broker with respect thereto whereby Buyer or Seller may be obligated to
pay such a fee or a commission.

     6.5 No Litigation. No suit, action or legal, administrative, arbitration or other proceeding
or, to Buyer’s knowledge, no investigation by any governmental agency, is pending or, to Buyer’s
knowledge, has been threatened by or against Buyer which would materially and adversely affect the
ability of Buyer to consummate the transaction provided for in this Agreement or any of the
Ancillary Documents.

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     6.6 Buyer’s Financing. Buyer has delivered to Seller financing commitment letters related to
(i) the senior debt (the “Financing Commitment Letter”) and (ii) the equity contribution from GS
Capital Partners V, L.P. (the “Equity Commitment Letter” and, together with the Financing Commitment Letter, the
“Commitment Letters”) necessary for consummation of the transactions contemplated by this
Agreement. Buyer acknowledges and agrees that the Closing is not contingent upon Buyer obtaining
financing to pay the Purchase Price. Nothing in this Agreement or any of the Ancillary Documents
will prohibit any of the parties to the Equity Commitment Letter from syndicating up to 50% of its
equity commitment thereunder; provided, however, that such equity commitment shall
not be syndicated in a manner that would reasonably be expected to delay or prevent the
consummation of the transactions contemplated by this Agreement.

     6.7 Buyer Awareness and Acknowledgement. Buyer is not actually aware of any fact, circumstance
or condition which it knows to constitute a material breach of any representation or warranty by
Seller contained in this Agreement (it being understood and agreed that for purposes of this
Section 6.7, “knowledge” of Buyer shall mean the actual knowledge of any fact, circumstance or
condition by any Person listed on Disclosure Schedule, Section 1(k)(i)). Buyer has been given the
opportunity to review and examine all of the Contracts listed in Disclosure Schedule, Section 5.14
and the materials made available in the Merrill Corporation DataSite data room for the Coffeyville
Project, ask questions of and receive answers from Seller and the Companies concerning the terms of
such Contracts and obtain any information with respect to such Contracts and such other materials.

SECTION 7. COVENANTS.

     7.1 Access to Records. From and after the date of this Agreement until the Closing Date,
Seller shall, upon reasonable advance notice and subject to the execution of any confidentiality
agreements reasonably required by Seller, afford to Buyer’s officers, independent public
accountants, counsel, lenders, consultants and other Representatives and potential financing
sources, reasonable access during normal business hours to (i) the Business and its personnel and
all records pertaining to the Business and (ii) the Facilities (including without limitation,
access for the purpose of conducting environmental assessments that do not include invasive
sampling of soil, sediment or groundwater), provided that such access shall not unreasonably
interfere with the normal business operations of the Business. Buyer, however, shall not be
entitled to access to any materials containing privileged communications or information about
employees, disclosure of which might violate an employee’s reasonable expectation of privacy.
Buyer expressly acknowledges that nothing in this Section is intended to give rise to any
contingency to Buyer’s obligations to proceed with the transactions contemplated herein.

     7.2 HSR Act. Seller and Buyer promptly will compile and file (or will cause its “ultimate
parent entity” (as determined for purposes of the HSR Act) to file) a Notification and Report Form
pursuant to the HSR Act containing such information respecting such party as the HSR Act requires.
Each of Buyer and Seller shall be responsible for its own expenses incurred in connection with the
preparation of any of the reports and other information required by the HSR Act, and Buyer shall
pay any filing fees required to be paid in connection with such HSR Act filings.

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     7.3 Permits, Consents, etc. Seller shall use commercially reasonable efforts to obtain the
consents listed on Disclosure Schedule, Section 7.3 (collectively, the “Required Consents”) and the
Listed Consents, and obtain all Permits, if any, necessary to transfer the Shares to Buyer;
provided, however, that Seller shall not be required to expend any funds in connection with the
foregoing. Buyer shall cooperate in all reasonable respects with Seller to obtain all Required
Consents, Listed Consents and Permits necessary to transfer the Shares to Buyer. Buyer shall use
commercially reasonable efforts to obtain all New Permits, and Seller shall, and shall cause the
Companies and the Operating Subsidiaries to, cooperate in all reasonable respects with Buyer to
obtain such New Permits.

     7.4 Conduct of the Business by Seller Pending Closing. From the date hereof through the
Closing Date, (a) Seller shall use all commercially reasonable efforts to cause the Companies and
the Operating Subsidiaries to conduct the Business only in the ordinary course of business, (b)
Seller shall use commercially reasonable efforts to cause the Companies and the Operating
Subsidiaries to preserve intact their business organizations, Assets and relationships with third
parties, including their relationships with customers, suppliers, agents, officers, employees and
other Persons with whom they have business dealings, and (c) Seller shall also use commercially
reasonable efforts to cause the Companies and the Operating Subsidiaries to: (i) maintain the
Business (including, without limitation, the Real Estate) in a state of repair and condition that
complies in all material respects with all Legal Requirements (except as set forth on Disclosure
Schedule, Section 5.11) and in a manner consistent with the Companies’ and the Operating
Subsidiaries’ past practices; (ii) preserve the goodwill and ongoing operations of the Business and
to comply with all Material Contracts; (iii) continue Capital Expenditures in the ordinary course
of business and substantially in accordance with the capital expenditure budget for 2005 provided
to Buyer prior to the date of this Agreement; and (iv) maintain in effect and comply with the terms
of the Crude Oil Purchase Agreement, dated as of January 1, 2001, by and between Farmland
Industries, Inc. and National Cooperative Refining Association. Except as otherwise contemplated
under this Agreement, from the date hereof through the Closing Date, without the prior written
consent of Buyer (which consent shall not be unreasonably withheld, conditioned or delayed), Seller
shall not, and shall not permit the Companies and the Operating Subsidiaries to (A) engage in any
practice, take any action or enter into any transaction of a type described in Section 5.20 (or
agree to do any of the foregoing) which practice, action or transaction, if it occurred on the day
prior to the date of this Agreement, would be required to be set forth on the Disclosure Schedule
hereto in order for the representations in Section 5.20 to be true and correct as of the date of
this Agreement, (B) except as set forth in Disclosure Schedule, Section 7.4, incur, assume or
guaranty any Indebtedness, other than loans or other Indebtedness under the Credit Agreement or
owed to any Company or Operating Subsidiary, or (C) enter into, modify, terminate, amend or grant
any waiver in respect of any Material Contract.

     7.5 Notification of Certain Events. From the date hereof through the Closing Date, Seller
shall give prompt notice to Buyer of, and Buyer shall give prompt notice to Seller of (a) any
litigation commenced against such party in respect of the transactions contemplated by this Agreement and (b) any events or occurrences that
may reasonably be expected to have a Material Adverse Effect.

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     7.6 Solicitation of Remedial Action

          (a) From the date of this Agreement through the Closing
Date, neither Seller, nor the Companies or the Operating Subsidiaries, without Buyer’s written
consent, which consent shall not be unreasonably withheld or delayed, shall take any affirmative
action to solicit from any Governmental Authority, any proceeding, Order or directive or other
mandate to materially modify any of the investigation, remediation, and/or implementation
activities required in connection with Environmental Conditions. For the avoidance of doubt, the
foregoing will not restrict the Companies or the Operating Subsidiaries from reporting to any
Governmental Authority, including any environmental agency, any Environmental Condition at the
Business, which the Companies or the Operating Subsidiaries have a legal obligation to report under
applicable Environmental Laws and as required under applicable Environmental Laws or Permits
granted pursuant to same.

          (b) From the date of this Agreement through the Closing Date, Buyer will not, without Seller’s
written consent, which consent shall not be unreasonably withheld or delayed, take any affirmative
action to solicit from any Governmental Authority, any proceeding, Order or directive or other
mandate to materially modify any of the investigation, remediation, and/or implementation
activities required in connection with Environmental Conditions; provided, Buyer and its
Representatives, with the consent and approval of Seller, may conduct discussions with any
Governmental Authority with respect to any environmental matters, which consent will not be
unreasonably withheld.

     7.7 Insurance. For all periods through the Closing Date, Seller will use commercially
reasonable efforts to maintain in effect the insurance policies presently providing insurance
coverage for the Companies, the Operating Subsidiaries and the Business.

     7.8 Financial Statements and Operating Summaries; Capital Expenditure Reports. From the date
of this Agreement through the Closing Date, as promptly as practicable but in no event later than
fifteen (15) days after the end of each calendar month, Seller shall provide Buyer with (a) copies
of the unaudited financial statements of the Operating Subsidiaries, on a consolidated basis,
prepared in accordance with past practice for each such calendar month (the “Supplemental Financial
Statements”), and (b) a report detailing the Capital Expenditures of the Companies and the
Operating Subsidiaries during each such calendar month comparing actual year-to-date Capital
Expenditures with budgeted Capital Expenditures.

     7.9 Registration Statement. Seller shall cause Coffeyville Resources, Inc. with respect to its
registration statement, filed on February 11, 2005 (File Number 333-122749), and amended by
Amendment No. 1, filed on April 15, 2005 (the “Registration Statement”), to comply with
Schedule 7.9.

     7.10 Financing.

          (a) Seller shall, and shall cause each of the Companies and the Operating
Subsidiaries to, cooperate with Buyer, its Representatives and its financing sources in order to
satisfy the conditions and obligations contained in the Commitment Letters, including:

               (i) providing reasonable access to the books and records, officers, directors, agents and
other Representatives of the Companies and the Operating Subsidiaries;

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               (ii) providing annual and interim financial statements of each Company and each
Operating Subsidiary that conform with the Securities and Exchange Commission’s requirements of
issuers of securities in registered public offerings;

               (iii) providing assistance and cooperation with the preparation of a standard confidential
memorandum;

               (iv) providing customary certifications to placement agents and auditors;

               (v) causing the officers and employees of the Companies and the Operating Subsidiaries to
participate in due diligence meetings, drafting sessions for the preparation of the confidential
memorandum and “road shows” and similar presentations in connection with the marketing of any
financing; and

               (vi) using commercially reasonable efforts to cause the accountants of the Companies and the
Operating Subsidiaries to provide such consents and comfort letters and causing internal counsel of
the Companies to provide such legal opinions, in each such case, as is customary for public
offerings.

          (b) Buyer shall use its commercially reasonable efforts to obtain the financing contemplated
under the Financing Commitment Letter.

     7.11 Non-Solicitation. For the period commencing on the date hereof and ending on the second
anniversary of the Closing Date, Seller agrees that it and its Affiliates (other than the Companies
and the Operating Subsidiaries) will not, and it will use its reasonable best efforts to cause its
Representatives and such Affiliates’ Representatives not to, directly or indirectly, without the
prior written consent of Buyer, solicit any current or former officer or employee of any Company or
of any Operating Subsidiary to leave the employ of any Company or of any Operating Subsidiary or to
become employed by Seller or any of such Affiliates; provided, that, such covenants will not
restrict Seller, such Affiliates and their respective Representatives from (i) conducting a general
solicitation of employment by means of newspaper, periodical or trade publication advertisements or
similar methods of solicitations by search firms that are not specifically directed toward the
officers or employees described above (provided, that no such officers or employees may be hired as
a result of such general solicitation or otherwise without the prior written consent of Buyer);
(ii) soliciting the employment of former officers or employees whose employment with any Company or
any Operating Subsidiary (x) terminated not less than six (6) months prior to the time of such
solicitation (provided, that the termination of employment of any such officer or employee shall
not have been, directly or indirectly, the result of any actions by or on behalf of Seller or such
Affiliates or their respective Representatives prohibited by this Section 7.11) or (y) was
terminated by any of the Companies or the Operating Subsidiaries; or (iii) soliciting the
employment of any officers or employees of any Company or any Operating Subsidiary that are also
officers or employees of Pegasus Capital Advisors, L.P.

     7.12 Public Announcements. No press release or announcement concerning the transactions contemplated by this Agreement or
any of the Ancillary Documents will be issued

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by either party without the prior consent of the
other party (which consent shall not be unreasonably withheld), except as such release or
announcement may be required by any Legal Requirement, in which case the party required to make the
release or announcement will give notice to and consult with the other party a reasonable time in
advance of such issuance.

     7.13 Termination of Seller-Company Agreements. Immediately prior to Closing, Seller shall
cause the termination or cancellation of all Contracts between Seller and Pegasus Partners II, L.P.
or any of their respective Affiliates (other than the Companies and the Operating Subsidiaries), on
the one hand, and any of the Companies or the Operating Subsidiaries, on the other hand, except for
any agreements or arrangements providing for indemnification of directors or officers of the
Companies or the Operating Subsidiaries, in their capacity as such, and listed on Disclosure
Schedule, Section 7.13 (such Contracts to be so terminated or cancelled, collectively, the
“Seller-Company Agreements”).

     7.14 Leiber Transactions. Prior to the Business Day immediately preceding the Closing Date,
Seller shall cause Coffeyville Resources, LLC or CL JV Holdings, as applicable, to (i) distribute
the Leiber Business (which will include Leiber Holdings, LLC and its Subsidiaries) to The Leiber
Group, Inc. (including by means of a merger of Leiber Holdings LLC with a “disregarded entity”
owned by The Leiber Group, Inc.), (ii) terminate the entire interest of The Leiber Group, Inc. in
CL JV Holdings (including any cash payments necessary to thereafter reduce the capital account of
The Leiber Group, Inc. to zero), (iii) distribute all the remaining assets of CL JV Holdings, LLC
to the members (other than The Leiber Group, Inc.) in liquidation of CL JV Holdings, LLC and (iv)
take such other steps (including Tax elections and methodologies) and make such other adjustments
to the capital structure and operative agreements of the Companies and the Operating Subsidiaries
as are required to effectuate the transactions described in clauses (i), (ii) and (iii) above, in
each case with the consent of the Buyer (which consent shall not be unreasonably withheld), and in
a manner so as to avoid, to the maximum extent possible, any mandatory negative adjustment, under
Section 734(b) or 743(b) of the Internal Revenue Code, to the tax basis of CL JV Holdings, LLC of
its interest in Coffeyville Resources, LLC or to the tax bases of the assets of Coffeyville
Resources, LLC (such transactions, the “Leiber Transactions”). Seller agrees that it will keep
Buyer informed of the overall status and specific steps with regard to the consummation of the
Leiber Transactions.

     7.15 Property Tax Abatement. Seller shall, and shall cause each of the Companies and the
Operating Subsidiaries to, cooperate with Buyer (including, without limitation, in obtaining any
required consents or approvals and making any required filings or notifications) to maintain in
effect the property tax abatement granted by the City of Coffeyville, Kansas with respect to the
Fertilizer Plant and the Real Estate associated therewith.

     7.16 Seller as Additional Insured. If Buyer intends to obtain or renew insurance to be held by
or on behalf of the Companies or the Operating Subsidiaries subsequent to the consummation of the
transactions contemplated hereby (an “Insurance Policy”), then Buyer shall provide Seller with
notice of such intention not less than thirty (30) days prior to purchasing the Insurance Policy
and Seller shall notify Buyer as to whether or not Seller desires to become an additional insured
party under the Insurance Policy not more than five (5) Business Days after receiving Buyer’s
original notice. If Seller shall notify Buyer in writing of its election to become an additional
insured party under the Insurance Policy in accordance with the immediately

39

 

preceding sentence,
then Buyer shall use its commercially reasonable efforts to cause the Insurance Policy it obtains
to name Seller as an additional insured thereunder; provided, however, that, (i)
under no circumstances will Buyer be required to pay or deliver any amounts, premiums or other
consideration in connection with obtaining an Insurance Policy that names Seller as an additional
insured thereunder in excess of the amounts, premiums or other consideration that would otherwise
be required to be paid or delivered by Buyer for an Insurance Policy that does not name Seller as
an additional insured thereunder (it being understood and agreed that Seller shall promptly
reimburse Buyer for, and be responsible for payment and discharge of, all of such excess amounts,
premiums and other consideration), and (ii) Seller owns or otherwise possesses a valid and
insurable interest that the insurance carrier of the Insurance Policy is willing to insure
thereunder (it being understood and agreed that if the insurance carrier of the Insurance Policy
determines not to name Seller as an additional insured thereunder for any reason, Buyer shall have
no further obligations under this Section 7.16). Buyer shall cause Coffeyville Resources,
LLC to maintain each of the Pollution Liability Policy and the Cost / Cap Remediation Policy for
any policy period which, as of the Closing Date, has been prepaid in full, and, during any such
policy period, shall not affirmatively seek or consent to the removal of Seller as a named insured
thereunder.

SECTION 8. CONDITIONS PRECEDENT TO BUYER’S OBLIGATIONS.

     The obligations of Buyer at the Closing hereunder are subject, at Buyer’s election, to the
satisfaction at or prior to the Closing of the conditions set forth below. Notwithstanding the
failure of any one or more of such conditions, Buyer may nevertheless, in its sole discretion,
proceed with the Closing without satisfaction, in whole or in part, of any one or more of such
conditions and without written waiver.

     8.1 Representations and Warranties True. (i) The representations and warranties of Seller set
forth in Section 5.5 shall be true and correct in all respects as of the Closing Date, and (ii) all
of the representations and warranties of Seller set forth in this Agreement (other than those
specified in the immediately preceding clause (i)) shall be true and correct in all respects as of
the Closing Date (or if made as of a specified date, only as of such date) disregarding, for
purposes of determining whether this clause (ii) is satisfied, any “Material Adverse Effect”, “in
all material respects” or other materiality (or correlative meaning) qualifications contained in
such representations and warranties except, in the case of this clause (ii), to the extent the
failure of any such representations and warranties to be so true and correct, in the aggregate, has
not had and could not reasonably be expected to have a Material Adverse Effect.

     8.2 Compliance with Agreement. Seller shall have duly performed and complied (i) in all
material respects with all of its covenants, agreements and obligations under: Section 3.2; Section
7.4(c)(iv); clause (A) of the last sentence of Section 7.4, to the extent it references any
practice, action or transaction of the type described in Section 5.20(b)(iii), Section 5.20(b)(vi),
Section 5.20(b)(ix), Section 5.20(b)(x), Section 5.20(b)(xi) or Section 5.20(b)(xii); Section 7.6;
Section 7.9; Section 7.13; or Section 7.14 of this Agreement which are to be performed or complied
with by it prior to or on the Closing Date, and (ii) in all respects with all of its covenants,
agreements and obligations under this Agreement which are to be performed or complied with by it
prior to or on the Closing Date (other than those specified in the immediately preceding clause
(i)), except to the extent the failure to duly perform and comply with any of

40

 

such covenants,
agreements or obligations, in the aggregate, has not had and could not reasonably be expected to
have a Material Adverse Effect.

     8.3 HSR Act Filings; Consents and Approvals. The applicable waiting period under the HSR Act
or any other Legal Requirements applicable to the transactions contemplated by this Agreement shall
have expired or been terminated. The Required Consents shall have been obtained in form and
substance reasonably satisfactory to Buyer.

     8.4 No Adverse Litigation. There shall not be, at the time of Closing, (a) any pending suit,
action, arbitration or proceeding brought by a Governmental Authority before any arbitrator, court
or Governmental Authority that is reasonably expected to be successful in seeking a remedy that
would restrain or prohibit the consummation of the Closing in accordance with the terms and
conditions hereof or (b) any Order that prohibits, restrains or enjoins the consummation of the
transactions contemplated by this Agreement.

     8.5 Ownership of Subsidiaries. The Companies shall directly or indirectly own all of the
issued and outstanding membership interests of Coffeyville Resources, LLC, free and clear of all
Liens, other than the security interests held by the Secured Lender which shall be released at
Closing. Coffeyville Resources, LLC shall own all of the issued and outstanding membership
interests of the Operating Subsidiaries, free and clear of all Liens, other than the security
interests held by the Secured Lender which shall be released at Closing.

     8.6 No Material Adverse Effect. No event, circumstance, change or effect shall have occurred
since the date of this Agreement that, individually or in the aggregate, has had or could
reasonably be expected to have a Material Adverse Effect.

     8.7 Termination of Seller-Company Agreements. Buyer shall have received evidence reasonably satisfactory to it that Seller and the Companies
and/or the Operating Subsidiaries, as applicable, have terminated all of the Seller-Company
Agreements and discharged any and all amounts and Liabilities due and owing under such agreements
prior to or on the Closing Date.

     8.8 Deliveries by Seller. Seller shall have complied in all respects with its obligations
under, and shall have delivered to Buyer and, to the extent applicable, any other purchaser of
Shares, all of the items contained in, Section 4.2(a) and Section 4.2(c).

SECTION 9. CONDITIONS PRECEDENT TO SELLER’S OBLIGATIONS.

     The obligations of Seller at the Closing hereunder are subject, at Seller’s election, to the
satisfaction at or prior to the Closing of the conditions set forth below. Notwithstanding the
failure of any one or more of such conditions, Seller may nevertheless, in its sole discretion,
proceed with the Closing without satisfaction, in whole or in part, of any one or more of such
conditions and without written waiver.

     9.1 Representations and Warranties True. All of the representations and warranties of Buyer
set forth in this Agreement shall be true and correct in all respects as of the Closing Date (or if
made as of a specified date, only as of such date) disregarding, for purposes of determining
whether this condition is satisfied, any “Material Adverse Effect”, “in all material

41

 

respects” or
other materiality (or correlative meaning) qualifications contained in such representations and
warranties except to the extent the failure of any such representations and warranties to be so
true and correct, in the aggregate, has not had and could not reasonably be expected to have a
material adverse effect on the Buyer.

     9.2 Compliance with Agreement. Buyer shall have duly performed and complied in all material
respects with all of its covenants, agreements and obligations under this Agreement which are to be
performed or complied with by it prior to or on the Closing Date.

     9.3 HSR Act Filings; Consents and Approvals. The applicable waiting period under the HSR Act
or any other Law applicable to the transactions contemplated by this Agreement shall have expired
or been terminated. The Required Consents shall have been obtained.

     9.4 Deliveries by Buyer. Buyer shall have complied in all respects with its obligations under,
and shall have delivered or caused to be delivered to Seller all of the items contained in, Section
4.2(b) and Section 4.2(d).

SECTION 10. TITLE COMMITMENT. No later than twenty (20) Business Days following the execution of this Agreement, Seller shall,
at its own cost and expense, provide Buyer with (i) a recent survey of the Real Estate owned by
Seller or any of the Companies or any of the Operating Subsidiaries (the “Surveys”), (ii) a recent
title policy commitment in favor of the applicable company issued by a nationally recognized title
insurance company reasonably acceptable to Buyer and Seller (the “Title Company”) covering the Real
Estate owned by Seller or any of the Companies or any of the Operating Subsidiaries (the “Title
Commitment”) and (iii) copies of all documents referenced as exceptions to title in the Title
Commitment. Seller shall not be obligated to furnish any policy of title insurance issued by the
Title Company or otherwise in respect of any portion of the Real Estate (a “Title Policy”), and it
shall not be a requirement of or condition to the Closing that Buyer obtain or be able to obtain
any Title Policy or that Buyer have or be able to have the survey exception in any Title Policy
modified in any manner or that any other special endorsements be made to any Title Policy,
including any endorsement regarding restrictive covenants. All costs of any Title Policies
obtained by Buyer shall be borne by Buyer. Any provision of this Agreement to the contrary
notwithstanding, at Closing Seller shall quitclaim all of Seller’s right, title and interest in and
to the Gathering System without any representations or warranties, express or implied. Seller
shall use its commercially reasonable efforts to deliver, or cause to be delivered, to any
applicable Title Company such surveys, certificates, acknowledgements or other documents as shall
be reasonably required by such Title Company in order for such Title Company to issue Title
Policies free of any and all Liens (other than Permitted Encumbrances) and issue customary title
endorsements.

SECTION 11.  INDEMNIFICATION.

     11.1 Obligation of Parties to Indemnify.

          (a) Indemnification by Seller. Subject to the limitations set forth in this Section
11, Seller shall indemnify, defend and hold harmless Buyer and its Affiliates and their respective
officers, directors, employees, agents and stockholders (or other interest holders) from

42

 

and against any and all claims, losses, damages, Liabilities, deficiencies, Taxes, penalties,
assessments, obligations or expenses of any kind or type, including reasonable legal fees and
expenses, but excluding lost profits or punitive damages incurred by any of the Indemnified Parties
(collectively, “Losses”), to the extent arising or resulting from (i) any misrepresentation or
breach of any representation or warranty contained in this Agreement or in any of the Ancillary
Documents, (ii) any nonfulfillment of any covenant or obligation of Seller under this Agreement or
any of the Ancillary Documents, (iii) any misrepresentation in any schedule, exhibit or certificate
furnished by or on behalf of Seller or to be furnished by or on behalf of Seller to Buyer pursuant
to this Agreement or any of the Ancillary Documents and (iv) any of the Excluded Liabilities.

          (b) Indemnification by Buyer. Subject to the limitations set forth in this Section
11, Buyer shall indemnify, defend and hold harmless Seller and its Affiliates and their respective
officers, directors, employees, agents and members (collectively, the “Seller Indemnitees”) from
and against any and all Losses to the extent arising or resulting from (i) any misrepresentation or
breach of any representation or warranty contained in this Agreement or in any of the Ancillary
Documents, (ii) any nonfulfillment of any covenant or obligation of Buyer under this Agreement or
any of the Ancillary Documents, (iii) any misrepresentation in any
schedule, exhibit or certificate furnished or to be furnished by or on behalf of Buyer to
Seller pursuant to this Agreement or any of the Ancillary Documents, and (iv) the ownership or
operation of the Business by Seller before or after the Closing Date except for those Losses for
which Buyer is entitled to indemnification by Seller pursuant to Section 11.1(a).

               Notwithstanding anything to the contrary contained in this Agreement, Buyer shall assume, pay,
perform, fulfill, and discharge any and all Environmental Liabilities and Costs of Compliance
arising out of or attributable to the ownership, operation, control, construction, maintenance,
occupancy, condition or use of the Assets, without regard to whether the Environmental Liability,
violation or obligation arose or occurred before or after the Closing, and shall indemnify, hold
harmless and defend the Seller Indemnitees from and against all Environmental Liabilities. Buyer’s
indemnification obligation under this Section 11.1(b) shall expressly exclude indemnification of
the Seller Indemnitees against ANY LIABILITY TO THE EXTENT BASED ON GROSS NEGLIGENCE, WILLFUL OR
INTENTIONAL MISCONDUCT OR FRAUD.

          (c) Exception to Indemnification. Notwithstanding any provision contained herein to the
contrary, no Indemnified Party shall be entitled to indemnification hereunder from and after the
Closing with respect to a breach by an Indemnifying Party of any representations and warranties
hereunder or under any of the Ancillary Documents that such Indemnified Party had actual knowledge
of on the date hereof, where such actual knowledge was acquired because the events, circumstances
and consequences thereof were clear on its face from materials actually provided to or obtained by
the Indemnified Party prior to the Closing.

     11.2 Indemnification Amounts. Any indemnification owing to either Buyer or Seller pursuant to
Section 11.1 shall be reduced by (a) any amounts actually received by the Indemnified Party
pursuant to (i) any insurance coverage with respect thereto (exclusive of amounts covered which are
subject to retrospective payments or premiums), or (ii) any counterclaim or otherwise from any
third party based on any claims the Indemnified Party has

43

 

against any such third party that reduces
the Losses that would otherwise be sustained (in each case net of the costs of recovery thereof)
and (b) any Tax benefit actually realized during the three (3) year period subsequent to the
satisfaction of the indemnification obligations related thereto by the Indemnified Party arising
from the incurrence or payment of any such Losses (any such amounts received that reduce the
indemnification owing to an Indemnified Party, the “Indemnity Reduction Amounts”). If the
Indemnified Party receives any Indemnity Reduction Amounts under applicable insurance policies, or
from any third party, in respect of an indemnified Loss for which indemnification is provided under
this Agreement after the full amount of such indemnified Loss has been paid by the Indemnifying
Party or after an Indemnifying Party has made a partial payment of such indemnified Loss and such
Indemnity Reduction Amounts exceed the remaining unpaid balance of such indemnified Loss, then such
Indemnified Party shall promptly remit to the Indemnifying Party an amount equal to the excess (if
any) of (i) the amount theretofore paid by the Indemnifying Party in respect of such indemnified
Loss, less (ii) the amount of the indemnity payment that would have been due if such Indemnity
Reduction Amounts in respect thereof had been received before the
indemnity payment was made, net of any expenses incurred by such Indemnified Party in collecting
such Indemnity Reduction Amounts.

     11.3 Indemnification Procedures — Third Party Claims.

          (a) If any Person who has the right to be indemnified under Sections 11.1(a) or 11.1(b) (the
“Indemnified Party”) receives written notice of the commencement of any action or proceeding or the
assertion of any claim by a third party (including, but not limited to, any Governmental Authority)
or the imposition of any penalty or assessment for which indemnity may be sought under Sections
11.1(a) or 11.1(b) (a “Third Party Claim”), and such Indemnified Party intends to seek indemnity
pursuant to this Section 11, the Indemnified Party shall as promptly as practicable provide the
party that has agreed to indemnify hereunder (the “Indemnifying Party”) with notice of such Third
Party Claim in writing and in reasonable detail of the Third Party Claim (including the factual
basis for the Third Party Claim, and, to the extent known, the amount of the Third Party Claim);
provided, however, that no delay on the part of the Indemnified Party in notifying the Indemnifying
Party will relieve the Indemnifying Party from any obligation hereunder unless (and then solely to
the extent) the Indemnifying Party is materially prejudiced as a result thereof. The Indemnifying
Party shall be entitled to participate in or, at its option, assume the defense of such Third Party
Claim (without admitting liability to the Indemnified Party or the third party) in either case at
the expense of the Indemnifying Party. Such defense shall be conducted through counsel (reasonably
satisfactory to the Indemnified Party) selected by the Indemnifying Party. Should the Indemnifying
Party so elect to assume the defense of a Third Party Claim, the Indemnifying Party will not be
liable to the Indemnified Party for any legal or other expenses subsequently incurred by the
Indemnified Party in connection with the defense thereof. If the Indemnifying Party is conducting
the defense of the Third Party Claim the Indemnified Party shall be entitled, at its own expense,
to retain separate counsel and participate in the defense of such Third Party Claim. If the
Indemnifying Party assumes the defense of any Third Party Claim, the Indemnifying Party will keep
the Indemnified Party informed of all material developments relating to or arising in connection
with such Third Party Claim. If the Indemnifying Party chooses to defend a Third Party Claim, the
Parties will cooperate in the defense thereof (with the Indemnifying Party being responsible for
all reasonable out-of-pocket expenses of the Indemnified Party in connection with such

44

 

cooperation), which cooperation will include the provision to the Indemnifying Party of records and
information which are reasonably relevant to such Third Party Claim, and making employees available
on a mutually convenient basis to provide additional information and explanation of any material
provided hereunder.

          (b) In the event that the Indemnifying Party fails to so assume the defense of any Third Party
Claim within ten (10) Business Days after receipt of notice thereof from the Indemnified Party, the
Indemnified Party shall have the right to undertake the defense of such Third Party Claim and, if
such Third Party Claim is one for which the Indemnified Party is entitled to be indemnified under
this Section 11, such defense of such Third Party Claim shall be at the expense and for the account
of the Indemnifying Party.

          (c) The Indemnifying Party shall be required to obtain the prior written approval of the
Indemnified Party (which approval shall not be unreasonably withheld) before entering into or
making any settlement, compromise, discharge, admission, or acknowledgment of the validity of any
Third Party Claim or any liability in respect thereof; provided, that if the Indemnifying Party
assumes the defense of any Third Party Claim, the Indemnified Party shall agree to any settlement,
compromise, discharge, admission or acknowledgment of the validity of such Third Party Claim which
the Indemnifying Party may recommend and which by its terms obligates the Indemnifying Party to pay
all monetary amounts in connection with such Third Party Claim and unconditionally releases the
Indemnified Party completely from all liability in connection with such Third Party Claim;
provided, however, that the Indemnified Party may refuse to agree to any such settlement,
compromise, discharge, admission, or acknowledgment, (i) that provides for injunctive or other
equitable relief would be imposed against the Indemnified Party, or (ii) that, in the reasonable
opinion of the Indemnified Party, would otherwise materially adversely affect the Indemnified
Party.

          (d) No Indemnifying Party shall consent to the entry of any judgment or enter into any
settlement that does not include as an unconditional term thereof the giving by each claimant or
plaintiff to each Indemnified Party of a release from all liability in respect of such Third Party
Claim.

          (e) Notwithstanding Section 11.3(a), the Indemnifying Party shall not be entitled to control
(but shall be entitled to participate at its own expense in) the defense of any Third Party Claim
as to which the Indemnifying Party fails to assume the defense within ten (10) Business Days after
receipt of notice thereof from the Indemnified Party; provided, however, that the Indemnified Party
shall make no settlement, compromise, discharge, admission, or acknowledgment that would give rise
to liability on the part of any Indemnifying Party without the prior written consent of such
Indemnifying Party (such consent not to be unreasonably withheld).

     11.4 Direct Claims. In any case in which an Indemnified Party seeks indemnification hereunder
which is not subject to Section 11.3 because no Third Party Claim is involved, the Indemnified
Party shall notify the Indemnifying Party in writing as promptly as practicable of any Losses which
such Indemnified Party claims are subject to indemnification under the terms hereof. Subject to
the limitations otherwise set forth in this Section 11, the failure of the Indemnified Party to
exercise promptness in such notification shall not amount to a waiver of

45

 

such claim unless the
resulting delay materially prejudices the position of the Indemnifying Party with respect to such
claim.

     11.5 Survival of Representations and Warranties; Covenants. Each representation and warranty of
Seller contained in Section 5 will survive the Closing and will continue in full force and effect
for nine (9) months thereafter. All covenants and agreements of the parties hereto contained in
this Agreement or in any of the Ancillary Documents shall survive the Closing until performed in
accordance with their terms.

     11.6 Indemnification Thresholds.

          (a) No claim for indemnification may be made under Section 11.1(a)(i) (other than with respect
to the representations and warranties contained in Section 5.3 (Capitalization), Section 5.5
(Shares; Seller Information), Section 5.15 (Taxes) and Section 5.16 (No Finder’s Fee)) or
11.1(a)(iii) for any individual claims or related claims unless and until the aggregate amount of
Losses (excluding all individual or related Losses below $50,000.00) of the Indemnified Parties
that may be claimed thereunder exceeds $3.5 million, and once such threshold has been reached, the
Indemnifying Party shall be liable to the Indemnified Parties for all Losses on a dollar-for-dollar
basis above such threshold. Seller’s liability under Section 11.1(a)(i) and 11.1(a)(iii) (other
than with respect to the representations and warranties contained in Section 5.3 (Capitalization),
Section 5.5 (Shares; Seller Information), Section 5.15 (Taxes) and Section 5.16 (No Finder’s Fee))
shall be limited in the aggregate to an amount equal to $35 million.

          (b) No claim for indemnification may be made under Section 11.1(b)(i), 11.1(b)(iii) or
11.1(b)(iv) for any individual claims or related claims unless and until the aggregate amount of
Losses (excluding all individual or related Losses below $50,000) of the Indemnified Party that may
be claimed respectively thereunder exceeds $3.5 million, and once such threshold has been reached,
the Indemnifying Party shall be liable to the Indemnified Party only for all Losses on a
dollar-for-dollar basis above such threshold. Buyer’s liability under Section 11.1(b)(i),
11.1(b)(iii) and 11.1(b)(iv) shall be limited in the aggregate to an amount equal to $35 million.

          (c) Indemnification claims against the Seller under Section 11.1(a)(ii) arising from a breach
by Seller under Section 3.1(b)(ii) shall be satisfied solely out of the Escrow Amount, in
accordance with the Escrow Agreement.

     11.7 Treatment of Payments. Any indemnification payments made pursuant to this Section 11,
shall be treated by Buyer and Seller as an adjustment to the Purchase Price for tax purposes unless
otherwise required by applicable Legal Requirements.

     11.8
Exclusive Remedy. Except for (a) Losses arising or resulting from Excluded Liabilities,
(b) claims based on a party’s intentional or fraudulent acts or omissions and (c) any equitable
actions for specific performance or injunctive or other equitable relief with respect to any
covenants or obligations to be performed in accordance with this Agreement or any of the Ancillary
Documents, from and after the Closing, (A) the indemnification provided in this Section 11 shall be
the sole and exclusive remedy of any party hereto arising out of, related to, in

46

 

connection with or
with respect to this Agreement, including without limitation any breaches of covenants,
representations or warranties, and indemnifiable events under this Section 11, and rights of
contribution or other recovery pursuant to any Environmental Law, and (B) each of the parties
hereby waives, to the fullest extent it may lawfully do so, any other rights, causes of action,
remedies or damages that it may have or assert against the other party in connection with this
Agreement and the transactions contemplated hereby, whether under statutory or common law, any Environmental Law, or
securities, trade regulation or other laws.

     11.9 Specific Performance. Notwithstanding anything in this Agreement to the contrary if, on
the Closing Date, (i) all the conditions to the obligations of Buyer contained in Section 8 have
been satisfied or waived by Buyer, and (ii) Buyer has notified Seller of its intention to
consummate the transactions contemplated under this Agreement, and if the Closing does not then
occur due to the refusal of Seller to consummate the Closing, then Buyer shall be entitled to
specifically enforce the terms of this Agreement in a court of competent jurisdiction, it being
acknowledged that monetary damages due to Buyer in such case may not be adequately determined at
law. The existence of this right shall not preclude any other rights and remedies at law or in
equity, including, without limitation, monetary damages, which Buyer may have.

SECTION 12. TERMINATION.

     12.1 Termination. This Agreement may be terminated and abandoned on or prior to the Closing
Date as follows:

          (a) by Buyer if a material breach of any provision of this Agreement has been committed by
Seller and such breach either has not been cured by Seller, or Seller has not diligently commenced
commercially reasonable action to cure such breach, within fifteen (15) Business Days after written
notice from Buyer to Seller of such breach or has not been waived by Buyer and Buyer is not then in
material breach of this Agreement;

          (b) by Seller if a material breach of any provision of this Agreement has been committed by
Buyer and such breach either has not been cured by Buyer, or Buyer has not diligently commenced
commercially reasonable action to cure such breach within fifteen (15) Business Days after written
notice from Seller to Buyer of such breach or has not been waived by Seller and Seller is not then
in material breach of this Agreement;

          (c) by Buyer if any other condition in Section 8 has not been satisfied as of the Closing Date
(other than any condition capable of being satisfied at the Closing) and if the satisfaction of
such a condition by the Outside Date is or becomes impossible (other than through the failure of
Buyer to comply with its obligations under this Agreement), and Buyer has not waived such condition
on or before such date and Buyer is not then in material breach of this Agreement;

          (d) by Seller if any condition in Section 9 has not been satisfied as of the Closing Date
(other than any condition capable of being satisfied at the Closing) and if the satisfaction of
such a condition by the Outside Date is or becomes impossible (other than through the failure of
Seller to comply with its obligations under this Agreement), and Seller has not

47

 

waived such
condition on or before such date and Seller is not then in material breach of this Agreement;

          (e) by mutual written consent of the parties hereto; or

          (f) by either party if the Closing has not occurred by the Outside Date.

In the event of termination by any party as provided above, written notice shall promptly be given
to the other party.

     12.2 Effect of Termination. In the event of the termination and abandonment of this Agreement
pursuant to Section 12.1, this Agreement shall forthwith become void and have no effect without any
liability on the part of any party hereto or any of its affiliates, directors, officers, members
and shareholders other than Section 7.12, this Section 12.2 and Section 13. Nothing contained in
this Section 12.2 shall relieve the defaulting or breaching party from liability to the other party
for any breach of this Agreement prior to such termination.

SECTION 13. MISCELLANEOUS.

     13.1 Expenses. Except as otherwise set forth in this Agreement, each of the parties hereto
agrees to be responsible for its own, without right of reimbursement from the other, costs incurred
by it incident to the performance of its obligations hereunder, whether or not the transactions
contemplated by this Agreement shall be consummated, including, without limitation, those costs
incident to the preparation of this Agreement, and the fees and disbursements of legal counsel,
accountants and consultants employed by the respective parties in connection with the transactions
contemplated by this Agreement.

     13.2 Assignment. This Agreement shall not be assigned by either party without the prior written
consent of the other party and any attempted assignment without such written consent shall be null
and void and without legal effect; provided, however, that Buyer may assign its
rights hereunder (i) to any Affiliate of Buyer, provided that such assignment would not reasonably
be expected to delay or prevent the consummation of the transactions contemplated by this
Agreement, (ii) to financial or lending institutions providing financing to Buyer or an Affiliate
thereof in connection with the transactions contemplated by this Agreement, provided that such
assignment would not reasonably be expected to delay or prevent the consummation of the
transactions contemplated by this Agreement, or (iii) after the Closing, in connection with the
merger or consolidation of, or sale, transfer or other disposition of all or substantially all of
the stock or assets of, Buyer or any of the Companies, but any such assignment shall not alter or
change the obligations of Buyer hereunder.

     13.3 Governing Law. This Agreement shall be governed by and construed and interpreted in
accordance with the laws of the State of New York applicable to agreements made and to be performed
entirely within such state, including all matters of construction, validity and performance.

     13.4 Amendment and Modification. Buyer and Seller may amend, modify and supplement this Agreement in such manner as may be
mutually agreed by them in writing.

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     13.5 Notices. All notices, requests, demands and other communications hereunder shall be deemed
to be duly given if delivered by hand, if mailed by certified or registered mail with postage
prepaid, if delivered by fax (with confirmation confirmed) or if sent by nationally recognized
overnight courier as follows:

If to Buyer:

Coffeyville Acquisition LLC

c/o GS Capital Partners V, L.P.

85 Broad Street

New York, New York 10004

Attn: Kenneth Pontarelli

Tel: (212) 902-1000

Fax: (212) 357-5505

Copy to (which will not constitute notice):

Fried, Frank, Harris, Shriver & Jacobson LLP

One New York Plaza

New York, New York 10004

Attn: Robert C. Schwenkel

Steven J. Steinman

Tel: (212) 859-8000

Fax: (212) 859-4000

If to Seller:

Coffeyville Group Holdings, LLC

c/o Pegasus Capital Advisors, L.P.

99 River Road

Cos Cob, CT 06808

Attention: Chief Executive Officer

Tel: (203) 869-4400

Fax: (203) 869-6940

Copy to (which will not constitute notice):

Akin Gump Strauss Hauer & Feld LLP

1333 New Hampshire Ave NW

Washington, DC 20036

Attn: Russell W. Parks, Jr.

Tel: (202) 887-4092

Fax: (202) 887-4288

or to such other addresses as either party may provide to the other in writing.

49

 

     13.6 Entire Agreement. Except for any written confidentiality agreements between the parties
(which shall survive execution and delivery of this Agreement), this Agreement and the Ancillary
Documents cancels, merges and supersedes all prior and contemporaneous understandings and
agreements relating to the subject matter of this Agreement and the Ancillary Documents, written or
oral, between the parties hereto, and contains the entire agreement of the parties hereto, and the
parties hereto have no agreements, representations or warranties relating to the subject matter of
this Agreement or any of the Ancillary Documents which are not set forth herein.

     13.7 Successors. This Agreement shall be binding upon and shall inure to the benefit of each of
the parties hereto and to their respective successors and permitted assigns.

     13.8 Counterparts. This Agreement may be executed in one or more counterparts each of which
shall be deemed an original but all of which together shall constitute but one and the same
instrument.

     13.9 Headings. The headings used in this Agreement are for convenience only and shall not
constitute a part of this Agreement.

     13.10 Jurisdiction. Any suit, action or proceeding between the parties hereto relating to this
Agreement or to any agreement, document or instrument delivered pursuant hereto or in connection
with the transactions contemplated hereby, or in any other manner arising out of or relating to the
transactions contemplated by or referenced in this Agreement shall be commenced and maintained
exclusively in the United States District Court for the Southern District of New York, or if that
court lacks jurisdiction over the subject matter, in a state court of competent subject matter
jurisdiction sitting in New York, New York. The parties hereto submit themselves unconditionally
and irrevocably to the personal jurisdiction of such courts, as applicable. The parties further
agree that venue shall be in the Southern District of New York. The parties hereto irrevocably
waive any objection to such personal jurisdiction or venue, including, but not limited to, the
objection that any suit, action or proceeding brought in the Southern District of New York, has
been brought in an inconvenient forum.

     13.11 Interpretation. Unless otherwise specified in this Agreement, the singular includes the
plural and the plural includes the singular; the word “or” is not exclusive. A reference to an
Article, Section, Party,
Schedule or Exhibit is a reference to that Article or Section of; or that Party, Schedule or
Exhibit to, this Agreement. A reference to a Person includes its successors and permitted assigns.
The words “include,” “includes” and “including” are not limiting. Any document (but only those
documents) contained in the Merrill Corporation DataSite data room for the Coffeyville Project on
or prior to May 12, 2005 shall be deemed to have been “made available” to Buyer for purposes of
Article 5 of this Agreement. Where a term or expression is defined, another part of speech or
grammatical form of that term or expression shall have a corresponding meaning. References to any
law shall be construed as a reference to such law and to all regulations and rulings promulgated
thereunder as each may be in effect from time to time.

[Signature page follows]

50

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the day and year first above written.

	 	 	 	 	 	 	 
	 	 	COFFEYVILLE GROUP HOLDINGS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Coffeyville Resources Management, Inc.,	 	 
	 

	 	 	 	its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Philip L. Rinaldi	 	 
	 

	 	 	 	 

Name: Philip L. Rinaldi
	 	 
	 

	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	COFFEYVILLE ACQUISITION LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	GS Capital Partners V Fund, L.P.,	 	 
	 

	 	 	 	its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	GSCP V Advisors, L.L.C.,	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kenneth Pontarelli	 	 
	 

	 	 	 	 

Name: Kenneth Pontarelli
	 	 
	 

	 	 	 	Title: Vice President	 	 

Signature Page to Stock Purchase AgreementEX-10.23.1

 

Exhibit 10.23.1

AMENDMENT NO. 1

TO

STOCK PURCHASE AGREEMENT

     Amendment No. 1, dated as of June 24, 2005 (this “Amendment No. 1”), to the Stock
Purchase Agreement, dated as of May 15, 2005 (the “Purchase Agreement”), between
COFFEYVILLE GROUP HOLDINGS, LLC, a Delaware limited liability company (“Seller”), and
COFFEYVILLE ACQUISITION LLC, a Delaware limited liability company (“Buyer”). Capitalized
terms used but not defined herein shall have the respective meanings ascribed to such terms in the
Purchase Agreement. All section references used herein are to the Purchase Agreement.

W I T N E S S E T H:

     WHEREAS, Buyer and Seller have entered into the Purchase Agreement; and

     WHEREAS, Buyer and Seller desire to amend the terms of the Purchase Agreement and Disclosure
Schedule as set forth below.

     NOW, THEREFORE, in consideration of the foregoing, Buyer and Seller hereby agree to amend the
Purchase Agreement as follows:

ARTICLE I

Amendments to the Purchase Agreement

     1.1.
The defined term “Business” in Section 1 of the Purchase Agreement is hereby
amended by deleting the parenthetical “(which memorandum of understanding will be assigned by
Coffeyville Resources, LLC or its Affiliates to Seller or its designee prior to the Closing)”
immediately after the word “Affiliates.”

     1.2.
The defined term “Disclosure Schedule” in Section 1 of the Purchase Agreement
is hereby amended by adding the words “and Buyer, as applicable,” immediately after the word
“Seller.”

     1.3.
The defined term “Excluded Liabilities” in Section 1 of the Purchase
Agreement is hereby amended and restated in its entirety to read as follows:

     “Excluded
Liabilities” means any Losses relating to, arising from or incurred in
connection with (i) the Leiber Transactions, the Leiber Business or the business and operations of
Leiber Holdings, LLC, a Delaware limited liability company, or any of its direct or indirect
Subsidiaries, including, without limitation, (x) in connection with the organization, operation or
redemption of The Leiber Group, Inc.’s interests in CL JV Holdings and any transactions related
thereto, (y) any incremental Tax liability of any of the Companies or any of the Operating
Subsidiaries and any incremental loss of Tax attributes of the Companies or any of the Operating
Subsidiaries related thereto, and (z)
any Tax liability of any of CL JV Holdings and any loss of Tax attributes of CL JV
Holdings related thereto (excluding, for purposes hereof, any fees or

 

 

expenses of accountants for
the Companies incurred to restate the financial statements of the Companies or the Operating
Subsidiaries for the purpose of reflecting the Leiber Transactions), and (ii) the GAF Liabilities.
Notwithstanding the foregoing, Excluded Liabilities does not include any income Taxes attributable
to the Leiber Transactions or any Losses relating to, arising from or incurred in connection with
the operation, redemption of interests in, dissolution, winding up, liquidation or termination of
CL JV Holdings and any transactions related thereto, in each case, after the Closing Date.”

     1.4. The defined term “Leiber Transactions” shall be amended to replace the
reference therein to “Section 7.15” with a reference to “Section 7.14.”

     1.5. Section 3.1(b)(i) of the Purchase Agreement is hereby amended to replace the
words “the Companies” with “NF Inc. and R&M Inc.”

     1.6. Section 3.1(b)(ii)(i) of the Purchase Agreement is hereby amended to replace
the word “Buyer” with the words “NF Inc. and R&M Inc.”

     1.7. Section 3.1(b)(ii) of the Purchase Agreement is hereby amended to add a new
sentence immediately prior to the last sentence of this section that reads as follows: “Any
payments made by or to NF Inc. and R&M Inc. pursuant to this Section 3.1(b)(ii) shall be treated as
adjustments to the payments to Seller for Shares of such corporations.”

     1.8. Section 3.1(c)(i) of the Purchase Agreement is hereby amended by replacing
the reference in the first sentence thereof to “thirty (30) days after the date hereof” with a
reference to “the Closing Date.”

     1.9. Section 3.2(b)(ii) of the Purchase Agreement is hereby amended to replace
each reference to “Section 3.3(b)(ii)” in such Section with a reference to “Section
3.2(b)(ii).”

     1.10. Clause (i) in the first sentence of Section 3.2(c) of the Purchase Agreement
is hereby amended by adding “; provided, that, such calculation of Working Capital shall be
calculated after giving effect to the consummation of the Leiber Transactions and the distributions
of or redemptions with cash by the Companies to the Seller and the distributions of cash by
Coffeyville Resources, LLC in connection therewith” immediately after the words “at the
Closing.”

     1.11. Section 4.2(b)(i) of the Purchase Agreement is hereby amended to replace the
words “the Companies” with “NF Inc. and R&M Inc.”

     1.12. Section 4.2(d) of the Purchase Agreement is hereby amended to replace the
first reference to “Seller” with a reference to “Buyer” and each reference to “the Companies” with
a reference to “NF Inc. and R&M Inc.”

     1.13. Section 4.2(e) of the Purchase Agreement is hereby amended to replace the
reference to “the Companies” with a reference to “NF Inc. and R&M Inc.” Section 4.2(e)
of the Purchase Agreement is further amended to replace each reference to the word
“Company” with a reference to the word “company.”

2

 

     1.14. The first sentence of Section 5.3(b) of the Purchase Agreement is hereby
amended and restated in its entirety to read as follows:

     “Coffeyville Resources, LLC has issued and outstanding one hundred (100) Class A
membership units, all of which are held by Pipeline, Inc., one hundred (100) Class B membership
units, 29.86 of which will be held by R&M Inc. and 70.14 of which will be held by CL JV Holdings at
Closing, one hundred (100) Class C membership units, 29.86 of which will be held by NF Inc. and
70.14 of which will be held by CL JV Holdings at Closing, one hundred (100) Class D membership
units, all of which are held by CT Inc., and one hundred (100) Class E membership units, all of
which are held by Terminal Inc.”

     1.15. Section 5.25 of the Purchase Agreement is hereby amended by adding the
phrase “described in clause (i) of the definition of Excluded Liabilities” immediately after the
words “Excluded Liabilities.”

     1.16. The first paragraph in Section 6 of the Purchase Agreement is hereby amended
and restated in its entirety as follows:

     “Except as set forth in the Disclosure Schedule delivered by Buyer (it being agreed that any
matter disclosed in a particular Section of the Disclosure Schedule delivered by Buyer shall be
deemed to have been disclosed with respect to any other Sections of this Agreement to the extent
that the relevance of such matter to such other Section is readily apparent from the information
disclosed), Buyer represents and warrants to Seller that the statements contained in this Section 6
are true, correct and complete as of the date of this Agreement, except to the extent that such
statements are expressly made only as of a specified date, in which case Buyer represents and
warrants that such statements are correct and complete as of such specified date.”

     1.17. The first sentence of Section 7.14 of the Purchase Agreement is hereby
amended and restated in its entirety to read as follows:

     “Prior to the Closing, Seller shall cause Coffeyville Resources, LLC or CL JV Holdings,
as applicable, to (i) distribute the Leiber Business (which will include Leiber Holdings, LLC and
its Subsidiaries) to The Leiber Group, Inc. (including by means of a merger of Leiber Holdings LLC
with a “disregarded entity” owned by The Leiber Group, Inc.), (ii) terminate the entire interest of
The Leiber Group, Inc. in CL JV Holdings (including any cash payments necessary to thereafter
reduce the capital account of The Leiber Group, Inc. to zero) and (iii) take such other steps
(including Tax elections and methodologies) and make such other adjustments to the capital
structure and operative agreements of the Companies and the Operating Subsidiaries as are required
to effectuate the transactions described in clauses (i) or (ii) above, in each case with the
consent of the Buyer (which consent shall not be unreasonably withheld), and in a manner so as to
avoid, to the maximum extent possible, any mandatory negative adjustment, under Section 734(b) or
743(b) of the Internal Revenue Code, to the tax basis of CL JV Holdings, LLC of its
interest in Coffeyville Resources, LLC or to the tax bases of the assets of Coffeyville
Resources, LLC (such transactions, the “Leiber
Transactions”).”

     1.18. The Purchase Agreement is hereby amended by adding a new Section 7.17 as
follows:

3

 

     “7.17 Transfer. Prior to the Closing, Seller shall transfer the stock of CT Inc.,
Terminal Inc. and Pipeline Inc. to R&M Inc. in a manner reasonably acceptable to Buyer.”

     1.19.
Section 8.8 of the Purchase Agreement is hereby amended to replace the
reference to “Section 4.2(c)” in such Section with a reference to “Section 4.2(e).”

ARTICLE II

Amendments to Schedules

     2.1. The Disclosure Schedule is hereby amended and restated in its entirety to
read as set forth in Exhibit A attached hereto.

ARTICLE III

Miscellaneous

     3.1. Effect of Amendment. Except as and to the extent expressly modified by this
Amendment No. 1, the Purchase Agreement shall remain in full force and effect in all respects. All
references in the Purchase Agreement to “the Agreement” are references to the Purchase Agreement as
amended by this Amendment No. 1.

     3.2. No Third-Party Beneficiaries. Notwithstanding anything contained in this
Amendment No. 1 to the contrary, nothing in this Amendment No. 1, express or implied, is intended
to confer on any person, other than the parties hereto or their respective successors and permitted
assigns, any rights, remedies, obligations or liabilities under or by reason of this Amendment No.
1.

     3.3. Governing Law. This Amendment No. 1 shall be governed by and construed and
interpreted in accordance with and governed by the laws of the State of New York applicable to
agreements made and to be performed entirely within such state, including all matters of
construction, validity and performance.

     3.4. Counterparts. This Amendment No. 1 may be executed in one or more
counterparts each of which shall be deemed an original but all of which together shall constitute
but one and the same instrument.

     3.5. Amendment. This Amendment No. 1 may not be amended except by an instrument
in writing signed on behalf of each of Buyer and Seller.

[Signature page follows]

4

 

     IN WITNESS WHEREOF, Buyer and Seller have executed this Amendment No. 1 as of the date set
forth above.

	 	 	 	 	 	 	 
	 	 	COFFEYVILLE GROUP HOLDINGS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Coffeyville Resources Management, Inc.,	 	 
	 

	 	 	 	its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Philip L. Rinaldi	 	 
	 

	 	 	 	 

Name: Philip L. Rinaldi
	 	 
	 

	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	COFFEYVILLE ACQUISITION LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ John J. Lipinski	 	 
	 

	 	 	 	 

Name: John J. Lipinski
	 	 
	 

	 	 	 	Title: President and Chief Executive Officer	 	 

 

 

EXHIBIT A

Disclosure Schedule

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