Document:

EX-10.2

 

Exhibit 10.2

 

AMENDED AND RESTATED

FIRST LIEN PLEDGE AND SECURITY AGREEMENT

by and between

COFFEYVILLE RESOURCES, LLC

CL JV HOLDINGS, LLC,

COFFEYVILLE PIPELINE, INC.,

COFFEYVILLE REFINING AND MARKETING, INC.,

COFFEYVILLE NITROGEN FERTILIZERS, INC.,

COFFEYVILLE CRUDE TRANSPORTATION, INC.,

COFFEYVILLE TERMINAL, INC.,

COFFEYVILLE RESOURCES PIPELINE, LLC,

COFFEYVILLE RESOURCES REFINING AND MARKETING, LLC,

COFFEYVILLE RESOURCES NITROGEN FERTILIZERS, LLC,

COFFEYVILLE RESOURCES CRUDE TRANSPORTATION, LLC, and

COFFEYVILLE RESOURCES TERMINAL, LLC

(Grantors)

and

CREDIT SUISSE

(Collateral Agent)

Dated as of December 28, 2006

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE	 
	SECTION 1. DEFINITIONS; GRANT OF SECURITY
	 	 	2	 
	1.1 General Definitions
	 	 	2	 
	1.2 Definitions; Interpretation
	 	 	9	 
	 
	 	 	 	 
	SECTION 2. GRANT OF SECURITY
	 	 	10	 
	2.1 Continuing Grant of Security
	 	 	10	 
	2.2 Grant of Security
	 	 	10	 
	2.3 Certain Limited Exclusions
	 	 	11	 
	 
	 	 	 	 
	SECTION 3. SECURITY FOR OBLIGATIONS; GRANTORS REMAIN LIABLE
	 	 	11	 
	3.1 Security for Obligations
	 	 	11	 
	3.2 Continuing Liability Under Collateral
	 	 	11	 
	 
	 	 	 	 
	SECTION 4. REPRESENTATIONS AND WARRANTIES AND COVENANTS
	 	 	12	 
	4.1 Generally
	 	 	12	 
	4.2 Equipment and Inventory
	 	 	14	 
	4.3 Receivables
	 	 	15	 
	4.4 Investment Related Property
	 	 	17	 
	4.5 Material Contracts
	 	 	23	 
	4.6 Letter of Credit Rights
	 	 	23	 
	4.7 Intellectual Property
	 	 	24	 
	4.8 Commercial Tort Claims
	 	 	26	 
	 
	 	 	 	 
	SECTION 5. ACCESS; RIGHT OF INSPECTION AND FURTHER ASSURANCES; ADDITIONAL GRANTORS
	 	 	27	 
	5.1 Access; Right of Inspection
	 	 	27	 
	5.2 Further Assurances
	 	 	27	 
	5.3 Additional Grantors
	 	 	28	 
	 
	 	 	 	 
	SECTION 6. COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT
	 	 	28	 
	6.1 Power of Attorney
	 	 	28	 
	6.2 No Duty on the Part of Collateral Agent or Secured Parties
	 	 	29	 
	 
	 	 	 	 
	SECTION 7. REMEDIES
	 	 	29	 
	7.1 Generally
	 	 	29	 
	7.2 Application of Proceeds
	 	 	31	 
	7.3 Sales on Credit
	 	 	31	 
	7.4 Deposit Accounts
	 	 	31	 
	7.5 Investment Related Property
	 	 	32	 
	7.6 Intellectual Property
	 	 	32	 
	7.7 Cash Proceeds
	 	 	34	 
	 
	 	 	 	 
	SECTION 8. COLLATERAL AGENT
	 	 	34	 

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	 	 	PAGE	 
	SECTION 9. CONTINUING SECURITY INTEREST; TRANSFER OF LOANS; RELEASES
	 	 	35	 
	 
	 	 	 	 
	SECTION 10. RIGHTS UNDER HEDGE AGREEMENTS; RIGHTS OF HOLDERS OF SPECIFIED SECURED HEDGE
INDEBTEDNESS
	 	 	35	 
	 
	 	 	 	 
	SECTION 11. STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM
	 	 	36	 
	 
	 	 	 	 
	SECTION 12. MISCELLANEOUS
	 	 	36	 
	 
	 	 	 	 
	SCHEDULE 4.1 — GENERAL INFORMATION
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 4.2 — LOCATION OF EQUIPMENT AND INVENTORY
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 4.4 — INVESTMENT RELATED PROPERTY
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 4.6 — DESCRIPTION OF LETTERS OF CREDIT
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 4.7 — INTELLECTUAL PROPERTY
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 4.8 — COMMERCIAL TORT CLAIMS
	 	 	 	 
	 
	 	 	 	 
	EXHIBIT A — PLEDGE SUPPLEMENT
	 	 	 	 
	 
	 	 	 	 
	EXHIBIT B — UNCERTIFICATED SECURITIES CONTROL AGREEMENT
	 	 	 	 
	 
	 	 	 	 
	EXHIBIT C — SECURITIES ACCOUNT CONTROL AGREEMENT
	 	 	 	 
	 
	 	 	 	 
	EXHIBIT D — DEPOSIT ACCOUNT CONTROL AGREEMENT
	 	 	 	 

ii 

 

AMENDED AND RESTATED FIRST LIEN PLEDGE AND SECURITY AGREEMENT

          This AMENDED AND RESTATED FIRST LIEN PLEDGE AND SECURITY AGREEMENT (as amended, amended and
restated, supplemented or otherwise modified from time to time, this “Agreement”), dated as of
December 28, 2006, is made by and between COFFEYVILLE RESOURCES, LLC, a Delaware limited liability
company (the “Company”), CERTAIN AFFILIATES OF THE COMPANY as guarantors (the “Guarantors” and each
of the Guarantors and the Company, together with its successors and permitted assigns, are referred
to hereinafter each individually as a “Grantor”, and collectively as the “Grantors”) and
CREDIT SUISSE, in its capacity as the Collateral Agent for the Secured Parties described
below (together with its successors, designees and permitted assigns in such capacity, the
“Collateral Agent”).

RECITALS:

          WHEREAS, Company, the other Guarantors, various financial institutions and other Persons from
time to time parties thereto as lenders (the “Lenders”), Goldman Sachs Credit Partners L.P. and
Credit Suisse, as joint lead arrangers and joint bookrunners (the “Arrangers”), Credit Suisse, as
administrative agent (together with its successors in such capacity, the “Administrative Agent”)
and collateral agent (together with its successors in such capacity, the “Collateral Agent”), and
the other Agents party thereto are entering into that certain Second Amended and Restated Credit
and Guaranty Agreement, dated as of the date hereof (as amended, supplemented, restated or
otherwise modified from time to time, the “Credit Agreement”) in order to amend and restate the
Existing Credit Agreement to provide (i) that on the Effective Date the aggregate commitments
available under the Existing Credit Agreement (as defined below) will be increased to
$1,075,000,000, (ii) for new Tranche D Term Loans, new Revolving Commitments and new Credit Linked
Deposits to be made on the Effective Date, and (iii) for certain other amendments to the Existing
Credit Agreement and related documents on the terms set forth therein;

          WHEREAS, in conjunction with the Existing Credit Agreement, the First Lien Pledge and Security
Agreement dated as of June 24, 2005, as amended as of July 8, 2005 (the “Existing Security
Agreement”) was entered into among the Grantors party thereto (together with each Guarantor that
became a “Grantor” thereunder prior to the date hereof, the “Existing Grantors”) and the collateral
agent thereunder pursuant to which such Existing Grantors granted a security interest in all of
their personal property collateral to secure the payment and performance in full when due of all
obligations described therein; and

          WHEREAS, in conjunction with the Credit Agreement, the parties to the Existing Security
Agreement intend to amend and restate the Existing Security Agreement and to confirm the grant of
the security interest in favor of the Collateral Agent under the Existing Security Agreement to
secure the payment and performance when due of all of the Secured Obligations.

     NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and in order to induce the Lenders and the Issuing Banks to make Credit Extensions to
the Company pursuant to the Credit Agreement and to Induce the Swap Counterparty to maintain the
Swap Agreement, each Grantor and the Collateral Agent agree, for the benefit of each Secured Party
that the Existing Security Agreement is hereby amended and restated to read in its entirety as
follows:

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SECTION 1. DEFINITIONS; GRANT OF SECURITY.

     1.1 General Definitions. In this Agreement, the following terms shall have the following
meanings:

          “Account Debtor” shall mean each Person who is obligated on a Receivable or any Supporting
Obligation related thereto.

          “Accounts” shall mean all “accounts” as defined in Article 9 of the UCC.

          “Additional Grantors” shall have the meaning assigned in Section 5.3.

          “Agreement” shall have the meaning set forth in the preamble.

          “Assigned Agreements” shall mean all agreements and contracts to which such Grantor is a party
as of the date hereof, or to which such Grantor becomes a party after the date hereof, including,
without limitation, each Material Contract, as each such agreement may be amended, supplemented or
otherwise modified from time to time.

          “Bankruptcy Code” shall mean Title 11 of the United States Code entitled “Bankruptcy”, as now
and hereafter in effect, or any successor statute.

          “Cash Proceeds” shall have the meaning assigned in Section 7.7.

          “Chattel Paper” shall mean all “chattel paper” as defined in Article 9 of the UCC, including,
without limitation, “electronic chattel paper” or “tangible chattel paper”, as each term is defined
in Article 9 of the UCC.

          “Collateral” shall have the meaning assigned in Section 2.2.

          “Collateral Account” shall mean any account established by the Collateral Agent.

          “Collateral Agent” shall have the meaning set forth in the preamble.

          “Collateral Records” shall mean books, records, ledger cards, files, correspondence, customer
lists, blueprints, technical specifications, manuals, computer software, computer printouts, tapes,
disks and related data processing software and similar items that at any time evidence or contain
information relating to any of the Collateral or are otherwise necessary or helpful in the
collection thereof or realization thereupon.

          “Collateral Support” shall mean all property (real or personal) assigned, hypothecated or
otherwise securing any Collateral and shall include any security agreement or other agreement
granting a lien or security interest in such real or personal property.

          “Commercial Tort Claims” shall mean all “commercial tort claims” as defined in Article 9 of
the UCC, including, without limitation, all commercial tort claims listed on Schedule 4.8 (as such
schedule may be amended or supplemented from time to time).

          “Commodities Accounts” (i) shall mean all “commodity accounts” as defined in Article 9 of the
UCC and (ii) shall include, without limitation, all of the accounts listed on

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Schedule 4.4 under the heading “Commodities Accounts” (as such schedule may be amended or
supplemented from time to time).

          “Company” shall have the meaning set forth in the recitals.

          “Controlled Foreign Corporation” shall mean “controlled foreign corporation” as defined in the
Tax Code, the equity interests of which are held directly by one or more Grantors.

          “Copyright Licenses” shall mean any and all agreements providing for the granting of any right
in or to Copyrights (whether such Grantor is licensee or licensor thereunder) including, without
limitation, each agreement referred to in Schedule 4.7(B) (as such schedule may be amended or
supplemented from time to time).

          “Copyrights” shall mean all United States, and foreign copyrights (including Community
designs), including but not limited to copyrights in software and databases, and all Mask Works (as
defined under 17 U.S.C. 901 of the U.S. Copyright Act), whether registered or unregistered, and,
with respect to any and all of the foregoing: (i) all registrations and applications therefor
including, without limitation, the registrations and applications referred to in Schedule 4.7(A)
(as such schedule may be amended or supplemented from time to time), (ii) all extensions and
renewals thereof, (iii) all rights corresponding thereto throughout the world, (iv) all rights to
sue for past, present and future infringements thereof, and (v) all Proceeds of the foregoing,
including, without limitation, licenses, royalties, income, payments, claims, damages and proceeds
of suit.

          “Credit Agreement” shall have the meaning set forth in the recitals.

          “Deposit Accounts” (i) shall mean all “deposit accounts” as defined in Article 9 of the UCC
and (ii) shall include, without limitation, all of the accounts listed on Schedule 4.4 under the
heading “Deposit Accounts” (as such schedule may be amended or supplemented from time to time).

          “Documents” shall mean all “documents” as defined in Article 9 of the UCC.

          “Equipment” shall mean: (i) all “equipment” as defined in Article 9 of the UCC, (ii) all
machinery, manufacturing equipment, data processing equipment, computers, office equipment,
furnishings, furniture, appliances, fixtures and tools (in each case, regardless of whether
characterized as equipment under the UCC) and (iii) all accessions or additions thereto, all parts
thereof, whether or not at any time of determination incorporated or installed therein or attached
thereto, and all replacements therefor, wherever located, now or hereafter existing, including any
fixtures, excluding however, all Excluded Equipment.

          “Excluded Equipment” shall mean at any date any Equipment of a Credit Party which is subject
to, or secured by, a Permitted Lien if and to the extent that (i) any Indebtedness secured by such
Permitted Lien is permitted pursuant to Section 6.1 of the Credit Agreement, (ii) the express terms
of a valid and enforceable restriction in favor of a Person who is not a Credit Party which is
contained in the agreements or documents granting such Permitted Lien or governing the Indebtedness
secured thereby and which is permitted to exist pursuant to Section 6.4 or 6.6 of the Credit
Agreement prohibits, or requires any consent or establishes any other conditions for, an assignment
thereof, or a grant of a security interest therein, by a Credit Party and (iii) such restriction
relates only to the asset or assets subject to such Permitted Lien;

3

 

provided that all proceeds paid or payable to any Credit Party from any sale, transfer or
assignment or other voluntary or involuntary disposition of such Equipment and all rights to
receive such Proceeds shall be included in the Collateral to the extent not otherwise required to
be paid to the holder of the Indebtedness secured by such Permitted Lien in such Equipment.

          “Exempt Deposit Accounts” shall mean each and every Deposit Account (A) the balance of which
consists exclusively of (i) withheld income taxes and federal, state or local employment taxes in
such amounts as are required in the reasonable judgment of the Company to be paid to the Internal
Revenue Service or state or local government agencies within the following two months with respect
to employees of any of the Credit Parties and (ii) amounts required to be paid over to an employee
benefit plan pursuant to DOL Reg. Sec. 2510.3-102 on behalf of or for the benefit of employees of
one or more Credit Parties and all segregated Deposit Accounts constituting (and the balance of
which consist solely of funds set aside in connection with) taxes accounts, payroll accounts and
trust accounts or (B) the average aggregate overnight balances in which do not exceed $1,000,000
during any period of seven consecutive days and, the aggregate balances in all such accounts do not
exceed $5,000,000 at any time.

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

          “Event of Default” shall mean an Event of Default under any of the First Lien Credit Documents
which, solely for the purposes of Section 7 of this Agreement, has resulted in the Administrative
Agent exercising any of its rights under the last paragraph of Section 8.1 of the Credit Agreement.

          “Exempt Securities Accounts” shall mean each and every Securities Account the average
aggregate overnight balances in which do not exceed $1,000,000 during any period of seven
consecutive days and, the aggregate balances in all such accounts do not exceed $5,000,000 at any
time.

          “Existing Grantors” shall have the meaning set forth in the recitals.

          “Existing Security Agreement” shall have the meaning set forth in the recitals.

          “First Lien Credit Documents” shall mean the Credit Agreement, the Credit Documents, any
Credit Facility (as defined in the Intercreditor Agreement), the Swap Agreement, any other Hedge
Agreements entered into with a Lender Counterparty and any agreement for Specified Secured Hedge
Indebtedness entered into with a Specified Hedge Counterparty, and each of the other agreements,
documents and instruments providing for or evidencing any other Obligation, and any other document
or instrument executed or delivered at any time in connection with any Obligations, including any
intercreditor or joinder agreement among holders of Obligations, to the extent such are effective
at the relevant time, as each may be amended, restated, supplemented, modified, renewed or extended
from time to time in accordance with the provisions of the Intercreditor Agreement.

          “General Intangibles” (i) shall mean all “general intangibles” as defined in Article 9 of the
UCC, including “payment intangibles” also as defined in Article 9 of the UCC and (ii) shall
include, without limitation, all interest rate or currency protection or hedging arrangements, all
tax refunds, all licenses, permits, concessions and authorizations, all Assigned Agreements and all
Grantor Intellectual Property (in each case, regardless of whether characterized as general
intangibles under the UCC).

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          “Goods” (i) shall mean all “goods” as defined in Article 9 of the UCC and (ii) shall include,
without limitation, all Inventory and Equipment (in each case, regardless of whether characterized
as goods under the UCC).

          “Grantors” shall have the meaning set forth in the preamble.

          “Grantor Intellectual Property” shall have the meaning set forth in Section 4.7(a)(ii) herein.

          “Guarantors” shall have the meaning set forth in the recitals.

          “Indemnitee” shall mean the Collateral Agent, and its and its Affiliates’ officers, partners,
directors, trustees, employees and agents.

          “Instruments” shall mean all “instruments” as defined in Article 9 of the UCC.

          “Insurance” shall mean (i) all insurance policies covering any or all of the Collateral
(regardless of whether the Collateral Agent is the loss payee thereof) and (ii) any key man life
insurance policies.

          “Intellectual Property” shall mean, collectively, the Copyrights, the Copyright Licenses, the
Patents, the Patent Licenses, the Trademarks, the Trademark Licenses, the Trade Secrets, and the
Trade Secret Licenses.

          “Inventory” shall mean (i) all “inventory” as defined in Article 9 of the UCC and (ii) all
goods held for sale or lease or to be furnished under contracts of service or so leased or
furnished, all raw materials, work in process, finished goods, and materials used or consumed in
the manufacture, packing, shipping, advertising, selling, leasing, furnishing or production of such
inventory or otherwise used or consumed in any Grantor’s business; all goods in which any Grantor
has an interest in mass or a joint or other interest or right of any kind; and all goods which are
returned to or repossessed by any Grantor, all computer programs embedded in any goods and all
accessions thereto and products thereof (in each case, regardless of whether characterized as
inventory under the UCC).

          “Investment Accounts” shall mean the Collateral Account, Securities Accounts, Commodities
Accounts and Deposit Accounts.

          “Investment Related Property” shall mean: (i) all “investment property” (as such term is
defined in Article 9 of the UCC) and (ii) all of the following (regardless of whether classified as
investment property under the UCC): all Pledged Equity Interests, Pledged Debt, the Investment
Accounts and certificates of deposit.

          “Lender” shall have the meaning set forth in the recitals.

          “Letter of Credit Right” shall mean “letter-of-credit right” as defined in Article 9 of the
UCC.

          “Money” shall mean “money” as defined in the UCC.

          “Non-Assignable Contract” shall mean any agreement, contract or license to which any Grantor
is a party that by its terms purports to restrict or prevent the assignment or

5

 

granting of a security interest therein (either by its terms or by any federal or state
statutory prohibition or otherwise irrespective of whether such prohibition or restriction is
enforceable under Section 9-406 through 409 of the UCC).

          “Obligations” shall mean all obligations of every nature of each Grantor from time to time
owed to the Secured Parties or any of them under the Credit Agreement, the Swap Agreement, Hedge
Agreements, agreements for Specified Secured Hedge Indebtedness (in an aggregate amount not to
exceed $25,000,000 less the amount of Indebtedness secured by Liens permitted by Section 6.2(u))
and other First Lien Credit Documents, and shall include all interest accrued or accruing (or which
would, absent commencement of an Insolvency or Liquidation Proceeding (as defined in the
Intercreditor Agreement) accrue) after commencement of an Insolvency or Liquidation Proceeding in
accordance with the rate specified in the relevant First Lien Credit Document whether or not the
claim for such interest is allowed as a claim in such Insolvency or Liquidation Proceeding,
reimbursement of amounts drawn under letters of credit, payments for early termination of the Swap
Agreement, Hedge Agreements or agreements for Specified Secured Hedge Indebtedness, fees, expenses,
indemnification or otherwise.

          “Patent Licenses” shall mean all agreements providing for the granting of any right in or to
Patents (whether such Grantor is licensee or licensor thereunder) including, without limitation,
each agreement referred to in Schedule 4.7(D) (as such schedule may be amended or supplemented from
time to time).

          “Patents” shall mean all United States and foreign patents and certificates of invention, or
similar industrial property rights, and applications for any of the foregoing, including, but not
limited to: (i) each patent and patent application referred to in Schedule 4.7(C) hereto (as such
schedule may be amended or supplemented from time to time), (ii) all reissues, divisions,
continuations, continuations-in-part, extensions, renewals, and reexaminations thereof, (iii) all
rights corresponding thereto throughout the world, (iv) all inventions and improvements described
therein, (v) all rights to sue for past, present and future infringements thereof, (vi) all
licenses, claims, damages, and proceeds of suit arising therefrom, and (vii) all Proceeds of the
foregoing, including, without limitation, licenses, royalties, income, payments, claims, damages,
and proceeds of suit.

          “Pledge Supplement” shall mean any supplement to this agreement in substantially the form of
Exhibit A.

          “Pledged Debt” shall mean all Indebtedness owed to such Grantor, including, without
limitation, all Indebtedness described on Schedule 4.4(A) under the heading “Pledged Debt” (as such
schedule may be amended or supplemented from time to time), issued by the obligors named therein,
the instruments evidencing such Indebtedness, and all interest, cash, instruments and other
property or proceeds from time to time received, receivable or otherwise distributed in respect of
or in exchange for any or all of such Indebtedness.

          “Pledged Equity Interests” shall mean all Pledged Stock, Pledged LLC Interests, Pledged
Partnership Interests and Pledged Trust Interests.

          “Pledged LLC Interests” shall mean all interests in any limited liability company including,
without limitation, all limited liability company interests listed on Schedule 4.4(A) under the
heading “Pledged LLC Interests” (as such schedule may be amended or supplemented from time to time)
and the certificates, if any, representing such limited liability company interests and any
interest of such Grantor on the books and records of such limited

6

 

liability company or on the books and records of any securities intermediary pertaining to
such interest and all dividends, distributions, cash, warrants, rights, options, instruments,
securities and other property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such limited liability company
interests.

          “Pledged Partnership Interests” shall mean all interests in any general partnership, limited
partnership, limited liability partnership or other partnership including, without limitation, all
partnership interests listed on Schedule 4.4(A) under the heading “Pledged Partnership Interests”
(as such schedule may be amended or supplemented from time to time) and the certificates, if any,
representing such partnership interests and any interest of such Grantor on the books and records
of such partnership or on the books and records of any securities intermediary pertaining to such
interest and all dividends, distributions, cash, warrants, rights, options, instruments, securities
and other property or proceeds from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such partnership interests.

          “Pledged Stock” shall mean all shares of capital stock owned by such Grantor, including,
without limitation, all shares of capital stock described on Schedule 4.4(A) under the heading
“Pledged Stock” (as such schedule may be amended or supplemented from time to time), and the
certificates, if any, representing such shares and any interest of such Grantor in the entries on
the books of the issuer of such shares or on the books of any securities intermediary pertaining to
such shares, and all dividends, distributions, cash, warrants, rights, options, instruments,
securities and other property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such shares.

          “Pledged Trust Interests” shall mean all interests in a Delaware business trust or other trust
including, without limitation, all trust interests listed on Schedule 4.4(A) under the heading
“Pledged Trust Interests” (as such schedule may be amended or supplemented from time to time) and
the certificates, if any, representing such trust interests and any interest of such Grantor on the
books and records of such trust or on the books and records of any securities intermediary
pertaining to such interest and all dividends, distributions, cash, warrants, rights, options,
instruments, securities and other property or proceeds from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of such trust interests.

          “Proceeds” shall mean: (i) all “proceeds” as defined in Article 9 of the UCC, (ii) payments
or distributions made with respect to any Investment Related Property and (iii) whatever is
receivable or received when Collateral or proceeds are sold, exchanged, collected or otherwise
disposed of, whether such disposition is voluntary or involuntary.

          “Receivables” shall mean all rights to payment, whether or not earned by performance, for
goods or other property sold, leased, licensed, assigned or otherwise disposed of, or services
rendered or to be rendered, including, without limitation all such rights constituting or evidenced
by any Account, Chattel Paper, Instrument, General Intangible or Investment Related Property,
together with all of Grantor’s rights, if any, in any goods or other property giving rise to such
right to payment and all Collateral Support and Supporting Obligations related thereto and all
Receivables Records.

          “Receivables Records” shall mean (i) all original copies of all documents, instruments or
other writings or electronic records or other Records evidencing the Receivables, (ii) all books,
correspondence, credit or other files, Records, ledger sheets or cards, invoices, and

7

 

other papers relating to Receivables, including, without limitation, all tapes, cards,
computer tapes, computer discs, computer runs, record keeping systems and other papers and
documents relating to the Receivables, whether in the possession or under the control of Grantor or
any computer bureau or agent from time to time acting for Grantor or otherwise, (iii) all evidences
of the filing of financing statements and the registration of other instruments in connection
therewith, and amendments, supplements or other modifications thereto, notices to other creditors
or secured parties, and certificates, acknowledgments, or other writings, including, without
limitation, lien search reports, from filing or other registration officers, (iv) all credit
information, reports and memoranda relating thereto and (v) all other written or nonwritten forms
of information related in any way to the foregoing or any Receivable.

          “Record” shall have the meaning specified in Article 9 of the UCC.

          “Secured Obligations” shall have the meaning assigned in Section 3.1.

          “Secured Parties” shall mean the Agents, Lenders, the Swap Counterparty, the Lender
Counterparties, and financial institutions who hold obligations consisting of Specified Secured
Hedge Indebtedness, such parties, the “Specified Hedge Counterparties”, and shall include, without
limitation, all former Agents, Lenders, the Swap Counterparties, Lender Counterparties and
Specified Hedge Counterparties to the extent that any Obligations owing to such Persons were
incurred while such Persons were Agents, Lenders, Swap Counterparties, Lender Counterparties or
Specified Hedge Counterparties and such Obligations have not been paid or satisfied in full.

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

          “Securities Accounts” (i) shall mean all “securities accounts” as defined in Article 8 of the
UCC and (ii) shall include, without limitation, all of the accounts listed on Schedule 4.4(A) under
the heading “Securities Accounts” (as such schedule may be amended or supplemented from time to
time).

          “Specified Hedge Counterparties” shall have the meaning specified in the definition of Secured
Parties.

          “Supporting Obligation” shall mean all “supporting obligations” as defined in Article 9 of the
UCC.

          “Swap Counterparty” shall mean J. Aron & Company.

          “Tax Code” shall mean the United States Internal Revenue Code of 1986, as amended from time to
time.

          “Trademark Licenses” shall mean any and all agreements providing for the granting of any right
in or to Trademarks (whether such Grantor is licensee or licensor

8

 

thereunder) including, without limitation, each agreement referred to in Schedule 4.7(F) (as
such schedule may be amended or supplemented from time to time).

          “Trademarks” shall mean all United States, and foreign trademarks, trade names, corporate
names, company names, business names, fictitious business names, Internet domain names, service
marks, certification marks, collective marks, logos, other source or business identifiers, designs
and general intangibles of a like nature, all registrations and applications for any of the
foregoing including, but not limited to: (i) the registrations and applications referred to in
Schedule 4.7(E) (as such schedule may be amended or supplemented from time to time), (ii) all
extensions or renewals of any of the foregoing, (iii) all of the goodwill of the business connected
with the use of and symbolized by the foregoing, (iv) the right to sue for past, present and future
infringement or dilution of any of the foregoing or for any injury to goodwill, and (v) all
Proceeds of the foregoing, including, without limitation, licenses, royalties, income, payments,
claims, damages, and proceeds of suit.

          “Trade Secret Licenses” shall mean any and all agreements providing for the granting of any
right in or to Trade Secrets (whether such Grantor is licensee or licensor thereunder) including,
without limitation, each agreement referred to in Schedule 4.7(G) (as such schedule may be amended
or supplemented from time to time).

          “Trade Secrets” shall mean all trade secrets and all other confidential or proprietary
information and know-how whether or not such Trade Secret has been reduced to a writing or other
tangible form, including all documents and things embodying, incorporating, or referring in any way
to such Trade Secret, including but not limited to: (i) the right to sue for past, present and
future misappropriation or other violation of any Trade Secret, and (ii) all Proceeds of the
foregoing, including, without limitation, licenses, royalties, income, payments, claims, damages,
and proceeds of suit.

          “UCC” shall mean the Uniform Commercial Code as in effect from time to time in the State of
New York or, when the context implies, the Uniform Commercial Code as in effect from time to time
in any other applicable jurisdiction.

          “United States” shall mean the United States of America.

     1.2 Definitions; Interpretation. All capitalized terms used herein (including the preamble
and recitals hereto) and not otherwise defined herein shall have the meanings ascribed thereto in
the Credit Agreement or, if not defined therein, in the UCC. References to “Sections,” “Exhibits”
and “Schedules” shall be to Sections, Exhibits and Schedules, as the case may be, of this Agreement
unless otherwise specifically provided. Section headings in this Agreement are included herein for
convenience of reference only and shall not constitute a part of this Agreement for any other
purpose or be given any substantive effect. Any of the terms defined herein may, unless the
context otherwise requires, be used in the singular or the plural, depending on the reference. The
use herein of the word “include” or “including”, when following any general statement, term or
matter, shall not be construed to limit such statement, term or matter to the specific items or
matters set forth immediately following such word or to similar items or matters, whether or not
nonlimiting language (such as “without limitation” or “but not limited to” or words of similar
import) is used with reference thereto, but rather shall be deemed to refer to all other items or
matters that fall within the broadest possible scope of such general statement, term or matter. If
any conflict or inconsistency exists between this Agreement and the Credit Agreement, the Credit
Agreement shall govern. All references herein to provisions of the UCC

9

 

shall include all successor provisions under any subsequent version or amendment to any
Article of the UCC.

SECTION 2. GRANT OF SECURITY.

     2.1 Continuing Grant of Security. Notwithstanding the amendment and restatement of the
Existing Credit Agreement, each Existing Grantor hereby confirms that the Existing Security
Agreement and all Collateral (as defined in the Existing Security Agreement) encumbered thereby
will continue to secure to the fullest extent permitted under applicable laws the payment and
performance of its Secured Obligations whether now or hereafter existing under or in respect of the
Credit Agreement. The parties also hereby amend and restate the grant of security interest in its
entirety as set forth in Section 2.2 below.

     2.2 Grant of Security. Each Grantor hereby grants to the Collateral Agent a security interest
in and continuing lien on all of such Grantor’s right, title and interest in, to and under all
personal property of such Grantor including, but not limited to the following, in each case whether
now owned or existing or hereafter acquired or arising and wherever located (all of which, except
as provided in Section 2.3, being hereinafter collectively referred to as the “Collateral”):

          (a) Accounts;

          (b) Chattel Paper;

          (c) Documents;

          (d) General Intangibles;

          (e) Goods;

          (f) Instruments;

          (g) Insurance;

          (h) Intellectual Property;

          (i) Investment Related Property;

          (j) Letter of Credit Rights;

          (k) Money;

          (l) Receivables and Receivable Records;

          (m) Commercial Tort Claims;

          (n) to the extent not otherwise included above, all Collateral Records, Collateral Support and
Supporting Obligations relating to any of the foregoing; and

          (o) to the extent not otherwise included above, all Proceeds, products, accessions, rents and
profits of or in respect of any of the foregoing.

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     2.3 Certain Limited Exclusions. Notwithstanding anything herein to the contrary, in no event
shall the Collateral include or the security interest granted under Section 2.2 hereof attach to
(a) any Intellectual Property, lease, license, contract, property rights or agreement to which any
Grantor is a party or any of its rights or interests thereunder if and for so long as the grant of
such security interest shall constitute or result in (i) the abandonment, invalidation or
unenforceability of any right, title or interest of any Grantor therein or (ii) in a breach or
termination pursuant to the terms of, or a default under, any such lease, license, contract
property rights or agreement (other than to the extent that any such term would be rendered
ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor
provision or provisions) of any relevant jurisdiction or any other applicable law (including the
Bankruptcy Code) or principles of equity), provided however that the Collateral shall include and
such security interest shall attach immediately at such time as the condition causing such
abandonment, invalidation or unenforceability shall be remedied and to the extent severable, shall
attach immediately to any portion of such Lease, license, contract, property rights or agreement
that does not result in any of the consequences specified in (i) or (ii) above; or (b) in any of
the outstanding capital stock of a Controlled Foreign Corporation in excess of 65% of the voting
power of all classes of capital stock of such Controlled Foreign Corporation entitled to vote;
provided that immediately upon the amendment of the Tax Code to allow the pledge of a greater
percentage of the voting power of capital stock in a Controlled Foreign Corporation without adverse
tax consequences, the Collateral shall include, and the security interest granted by each Grantor
shall attach to, such greater percentage of capital stock of each Controlled Foreign Corporation or
(c) with respect to perfection only, any item of personal property as to which the Collateral Agent
shall determine in its reasonable discretion after consultation with the Company that the costs of
perfecting a security interest in such item are excessive in relation to the value of such security
being perfected thereby.

SECTION 3. SECURITY FOR OBLIGATIONS; GRANTORS REMAIN LIABLE.

     3.1 Security for Obligations. This Agreement secures, and the Collateral is collateral
security for, the prompt and complete payment or performance in full when due, whether at stated
maturity, by required prepayment, declaration, acceleration, demand or otherwise (including the
payment of amounts that would become due but for the operation of the automatic stay under Section
362(a) of the Bankruptcy Code, 11 U.S.C. §362(a) (and any successor provision thereof)), of all
Obligations with respect to every Grantor (the “Secured Obligations”).

     3.2 Continuing Liability Under Collateral. Notwithstanding anything herein to the contrary,
(i) each Grantor shall remain liable for all obligations under the Collateral and nothing contained
herein is intended or shall be a delegation of duties to the Collateral Agent or any Secured Party,
(ii) each Grantor shall remain liable under each of the agreements included in the Collateral,
including, without limitation, any agreements relating to Pledged Partnership Interests or Pledged
LLC Interests, to perform all of the obligations undertaken by it thereunder all in accordance with
and pursuant to the terms and provisions thereof and neither the Collateral Agent nor any Secured
Party shall have any obligation or liability under any of such agreements by reason of or arising
out of this Agreement or any other document related thereto nor shall the Collateral Agent nor any
Secured Party have any obligation to make any inquiry as to the nature or sufficiency of any
payment received by it or have any obligation to take any action to collect or enforce any rights
under any agreement included in the Collateral, including, without limitation, any agreements
relating to Pledged Partnership Interests or Pledged LLC Interests, and (iii) the exercise by the
Collateral Agent of any of its rights hereunder shall not release any Grantor from any of its
duties or obligations under the contracts and agreements included in the Collateral.

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SECTION 4. REPRESENTATIONS AND WARRANTIES AND COVENANTS.

     4.1 Generally.

          (a) Representations and Warranties. Each Grantor hereby represents and warrants, on
the Effective Date and on each Credit Date, that:

          (i) it owns the Collateral purported to be owned by it or otherwise has the rights it
purports to have in each item of Collateral and, as to all Collateral whether now existing
or hereafter acquired, will, except as permitted by the Credit Agreement, continue to own
or have such rights in each item of the Collateral, in each case free and clear of any and
all Liens, rights or claims of all other Persons other than Permitted Liens;

          (ii) it has indicated on Schedule 4.1(A) (as such schedule may be amended or
supplemented from time to time): (w) the type of organization of such Grantor, (x) the
jurisdiction of organization of such Grantor and (y) its organizational identification
number, if any;

          (iii) the full legal name of such Grantor is as set forth on Schedule 4.1(A) (as such
schedule may be amended or supplemented from time to time) and it has not done in the last
five (5) years, and does not do, business under any other name (including any trade-name or
fictitious business name) except for those names set forth on Schedule 4.1(B) (as such
schedule may be amended or supplemented from time to time);

          (iv) except as provided on Schedule 4.1(C) (as such schedule may be amended or
supplemented from time to time), it has not changed its name, jurisdiction of organization
(or principal residence if such Grantor is a natural person) or its corporate structure in
any way (e.g., by merger, consolidation, change in corporate form or otherwise) within the
past five (5) years;

          (v) except in connection with Permitted Liens, it has not within the last five (5)
years become bound (whether as a result of merger or otherwise) as debtor under a security
agreement entered into by another Person, which has not heretofore been terminated;

          (vi) (u) upon the filing of all UCC financing statements naming each Grantor as
“debtor” and the Collateral Agent as “secured party” and describing the Collateral in the
filing offices set forth opposite such Grantor’s name on Schedule 4.1(E) hereof (as such
schedule may be amended or supplemented from time to time), (v) upon delivery of all
Instruments, Chattel Paper and certificated Pledged Equity Interests and Pledged Debt, (w)
upon sufficient identification of Commercial Tort Claims, (x) upon execution of a control
agreement establishing the Collateral Agent’s “control” (within the meaning of Section
8-106, 9-106 or 9-104 of the UCC, as applicable) with respect to any Investment Account
(other than Exempt Deposit Accounts or Exempt Securities Accounts), (y) upon consent of the
issuer with respect to Letter of Credit Rights, and (z) to the extent not subject to
Article 9 of the UCC, upon recordation of the security interests in registered or applied
for Grantor Intellectual Property (other than any foreign Intellectual Property, to the
extent such foreign Intellectual Property cannot be perfected in the United States) in the
applicable intellectual property registries, including but not

12

 

limited to the United States Patent and Trademark Office and the United States
Copyright Office, the security interests granted to the Collateral Agent hereunder
constitute valid and perfected (it being understood and agreed that the Exempt Deposit
Accounts and Exempt Securities Accounts will not be perfected by execution of a control
agreement) first priority Liens (subject in the case of priority only to Permitted Liens
and to the rights of the United States government (including any agency or department
thereof) with respect to United States government Receivables) on all of the Collateral;

          (vii) all material actions and consents, including all material filings, notices,
registrations and recordings necessary for the exercise by the Collateral Agent of the
voting or other rights provided for in this Agreement or the exercise of remedies in
respect of the Collateral have been made or obtained;

          (viii) other than the financing statements filed in favor of the Collateral Agent, no
effective UCC financing statement, fixture filing or other instrument similar in effect
under any applicable law covering all or any part of the Collateral is on file in any
filing or recording office except for (x) financing statements for which proper termination
statements have been delivered to the Collateral Agent for filing and (y) financing
statements filed in connection with Permitted Liens;

          (ix) except as could not result in a Material Adverse Effect, no authorization,
approval or other action by, and no notice to or filing with, any Governmental Authority or
regulatory body that has not been made or obtained is required for either (i) the pledge or
grant by any Grantor of the Liens purported to be created in favor of the Collateral Agent
hereunder or (ii) the exercise by Collateral Agent of any rights or remedies in respect of
any Collateral (whether specifically granted or created hereunder or created or provided
for by applicable law), except (A) for the filings contemplated by clause (vii) above and
(B) as may be required, in connection with the disposition of any Investment Related
Property, by laws generally affecting the offering and sale of Securities;

          (x) none of the Collateral constitutes, or is the Proceeds of, “farm products” (as
defined in the UCC);

          (xi) it does not own any “as extracted collateral” (as defined in the UCC) or any
timber to be cut; and

          (xii) such Grantor has been duly organized as an entity of the type as set forth
opposite such Grantor’s name on Schedule 4.1(A) (as such schedule may be amended or
supplemented from time to time) solely under the laws of the jurisdiction as set forth
opposite such Grantor’s name on Schedule 4.1(A) and remains duly existing as such. Such
Grantor has not filed any certificates of domestication, transfer or continuance in any
other jurisdiction.

          (b) Covenants and Agreements. Each Grantor hereby covenants and agrees that until the
payment in full of all Obligations (other than unmatured contingent obligations), the cancellation
or termination of all Commitments, the expiration or termination of the Swap Agreement, all Hedge
Agreements and all agreements for Specified Secured Hedge Indebtedness and the cancellation or
expiration of all outstanding Letters of Credit:

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          (i) except for the security interest created by this Agreement, it shall not create or
suffer to exist any Lien upon or with respect to any of the Collateral, except Permitted
Liens, and, except where the failure to do so could not be reasonably expected to have a
Material Adverse Effect, such Grantor shall defend the Collateral against all Persons at
any time claiming any interest therein;

          (ii) it shall not produce, use or permit any Collateral to be used unlawfully or in
violation of any provision of this Agreement or, except where the failure to do so could
not be reasonably expected to have a Material Adverse Effect, any applicable statute,
regulation or ordinance or any policy of insurance covering the Collateral;

          (iii) it shall not change such Grantor’s name, identity, corporate structure (e.g., by
merger, consolidation, change in corporate form or otherwise) sole place of business (or
principal residence if such Grantor is a natural person), chief executive office, type of
organization or jurisdiction of organization or establish any trade names unless it shall,
promptly after such change, and in no event later than 15 days after such change (a) notify
the Collateral Agent in writing, by executing and delivering to the Collateral Agent a
completed Pledge Supplement, substantially in the form of Exhibit A attached hereto,
together with all Supplements to Schedules thereto, identifying such new name, identity,
corporate structure, sole place of business (or principal residence if such Grantor is a
natural person), chief executive office, jurisdiction of organization or trade name and
providing such other information in connection therewith as the Collateral Agent may
reasonably request and (b) take all actions necessary to maintain the continuous validity,
perfection and the same or better priority of the Collateral Agent’s security interest in
the Collateral intended to be granted and agreed to hereby; and

          (iv) it shall not sell, transfer or assign (by operation of law or otherwise) any
Collateral except as otherwise permitted in accordance with the Credit Agreement.

4.2 Equipment and Inventory.

          (a) Representations and Warranties. Each Grantor represents and warrants, on the
Effective Date and on each Credit Date, that:

          (i) to the best knowledge of such Grantor, all of the Equipment and Inventory included
in the Collateral with a book value in excess of $5,000,000 is kept for the past four (4)
years only at the locations specified in Schedule 4.2 (as such schedule may be amended or
supplemented from time to time); and

          (ii) except as set forth in Schedule 4.2 (as such schedule may be amended or
supplemented from time to time), none of the Inventory or Equipment with a book value in
excess of $5,000,000 is in the possession of an issuer of a negotiable document (as defined
in Section 7-104 of the UCC) therefor or otherwise in the possession of a bailee or a
warehouseman.

          (b) Covenants and Agreements. Each Grantor covenants and agrees that until payment in
full of all Obligations (other than unmatured contingent obligations), the cancellation or
termination of all Commitments, the expiration or termination of the Swap

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Agreement, all Hedge Agreements and all agreements for Specified Secured Hedge Indebtedness
and the cancellation or expiration of all outstanding Letters of Credit:

          (i) it shall keep the Equipment, Inventory and any Documents evidencing any Equipment
and Inventory with a book value in excess of $5,000,000 in the locations specified on
Schedule 4.2 (as such schedule may be amended or supplemented from time to time) unless it
shall have taken all actions, if any, necessary to maintain the continuous validity,
perfection and the same or better priority of the Collateral Agent’s security interest in
the Collateral intended to be granted and agreed to hereby, or to enable the Collateral
Agent to exercise and enforce its rights and remedies hereunder, with respect to such
Equipment and Inventory;

          (ii) it shall not deliver any Document evidencing any Equipment and Inventory to any
Person other than the issuer of such Document to claim the Goods evidenced therefor or the
Collateral Agent;

          (iii) if any Equipment or Inventory in the amount in excess of $5,000,000 is in
possession or control of any third party, each Grantor shall join with the Collateral Agent
in notifying the third party of the Collateral Agent’s security interest and shall use its
commercially reasonable efforts to obtain an acknowledgment from the third party that it is
holding such Equipment and Inventory for the benefit of the Collateral Agent; and

          (iv) with respect to any item of Equipment which is covered by a certificate of title
under a statute of any jurisdiction under the law of which indication of a security
interest on such certificate is required as a condition of perfection thereof, upon the
reasonable request of the Collateral Agent, (A) provide information with respect to any
such Equipment in excess of $1,000,000 individually or $5,000,000 in the aggregate, (B)
execute and file with the registrar of motor vehicles or other appropriate authority in
such jurisdiction an application or other document requesting the notation or other
indication of the security interest created hereunder on such certificate of title, and (C)
deliver to the Collateral Agent copies of all such applications or other documents filed
during such calendar quarter and copies of all such certificates of title issued during
such calendar quarter indicating the security interest created hereunder in the items of
Equipment covered thereby.

     4.3 Receivables.

          (a) Representations and Warranties. Each Grantor represents and warrants, on the
Effective Date and on each Credit Date, that:

          (i) to its knowledge, each Receivable owing by any single Account Debtor with value in
excess of $5,000,000 (a) is and will be the legal, valid and binding obligation of the
Account Debtor in respect thereof, representing an unsatisfied obligation of such Account
Debtor, (b) is and will be enforceable in accordance with its terms, (c) is not and will
not be subject to any setoffs, defenses, taxes, counterclaims (except with respect to
refunds, returns and allowances in the ordinary course of business with respect to damaged
merchandise) and (d) is and will be in compliance with all applicable laws, whether
federal, state, local or foreign;

15

 

          (ii) none of the Account Debtors in respect of any Receivable in excess of $1,000,000
individually or $5,000,000 in the aggregate is the government of the United States, any
agency or instrumentality thereof, any state or municipality or any foreign sovereign. No
Receivable in excess of $1,000,000 individually or $5,000,000 in the aggregate requires the
consent of the Account Debtor in respect thereof in connection with the pledge hereunder,
except any consent which has been obtained; and

          (iii) no Receivable in excess of $1,000,000 individually or $5,000,000 in the
aggregate is evidenced by, or constitutes, an Instrument or Chattel Paper which has not
been delivered to, or otherwise subjected to the control of, the Collateral Agent to the
extent required by, and in accordance with Section 4.3(c).

          (b) Covenants and Agreements: Each Grantor covenants and agrees that until payment in
full of all Obligations (other than unmatured contingent obligations), the cancellation or
termination of all Commitments, the expiration or termination of the Swap Agreement, all Hedge
Agreements and all agreements for Specified Secured Hedge Indebtedness and the cancellation or
expiration of all outstanding Letters of Credit:

          (i) it shall perform in all material respects all of its obligations with respect to
the Receivables, except as could not reasonably be expected to have Material Adverse
Effect;

          (ii) it shall not amend, modify, terminate or waive any provision of any Receivable in
any manner which could reasonably be expected to have a Material Adverse Effect. Other
than in the ordinary course of business as generally conducted by it on and prior to the
date hereof and, except as otherwise provided in subsection (v) below, following an Event
of Default, such Grantor shall not (w) grant any extension or renewal of the time of
payment of any Receivable, (x) compromise or settle any dispute, claim or legal proceeding
with respect to any Receivable for less than the total unpaid balance thereof, (y) release,
wholly or partially, any Person liable for the payment thereof, or (z) allow any credit or
discount thereon;

          (iii) except as otherwise provided in this subsection, each Grantor shall during the
continuance of an Event of Default take such action as such Grantor or the Collateral Agent
may deem reasonably necessary to exercise all material rights it may have under
Receivables. Notwithstanding the foregoing, the Collateral Agent shall have the right at
any time during the continuance of an Event of Default to notify, or require any Grantor to
notify, any Account Debtor of the Collateral Agent’s security interest in the Receivables
and any Supporting Obligation and, in addition, at any time following the occurrence and
during the continuation of an Event of Default, the Collateral Agent may: (1) direct the
Account Debtors under any Receivables to make payment of all amounts due or to become due
to such Grantor thereunder directly to the Collateral Agent; (2) notify, or require any
Grantor to notify, each Person maintaining a lockbox or similar arrangement to which
Account Debtors under any Receivables have been directed to make payment to remit all
amounts representing collections on checks and other payment items from time to time sent
to or deposited in such lockbox or other arrangement directly to the Collateral Agent; and
(3) enforce, at the expense of such Grantor, collection of any such Receivables and to
adjust, settle or compromise the amount or payment thereof, in the same manner and to the
same extent as such Grantor might have done. If the Collateral Agent notifies any Grantor
that it has elected to collect the Receivables in accordance with the preceding sentence,
any payments of Receivables

16

 

received by such Grantor shall be forthwith (and in any event within two (2)
Business Days) deposited by such Grantor in the exact form received, duly indorsed by such
Grantor to the Collateral Agent if required, in the Collateral Account maintained under the
sole dominion and control of the Collateral Agent, and until so turned over, all amounts
and proceeds (including checks and other instruments) received by such Grantor in respect
of the Receivables, any Supporting Obligation or Collateral Support shall be received in
trust for the benefit of the Collateral Agent hereunder and shall be segregated from other
funds of such Grantor and, subject to paragraph (i) above, such Grantor shall not adjust,
settle or compromise the amount or payment of any Receivable, or release wholly or partly
any Account Debtor or obligor thereof, or allow any credit or discount thereon; and

          (iv) it shall use its commercially reasonable efforts to keep in full force and effect
any Supporting Obligation or Collateral Support relating to any Receivable.

          (c) Delivery and Control of Receivables. With respect to any Receivables in excess of
$1,000,000 individually or $5,000,000 in the aggregate that is evidenced by, or constitutes,
Chattel Paper or Instruments, each Grantor shall cause each originally executed copy thereof to be
delivered to the Collateral Agent (or its agent or designee) appropriately indorsed to the
Collateral Agent or indorsed in blank: (i) with respect to any such Receivables in existence on
the date hereof, on or prior to the date hereof and (ii) with respect to any such Receivables
hereafter arising, within ten (10) Business Days of such Grantor acquiring rights therein. With
respect to any Receivables in excess of $1,000,000 individually or $5,000,000 in the aggregate
which would constitute “electronic chattel paper” under Article 9 of the UCC, each Grantor shall
take all steps necessary to give the Collateral Agent control over such Receivables (within the
meaning of Section 9-105 of the UCC): (i) with respect to any such Receivables in existence on the
date hereof, on or prior to the date hereof and (ii) with respect to any such Receivables hereafter
arising, within ten (10) days of such Grantor acquiring rights therein. Any Receivable not
otherwise required to be delivered or subjected to the control of the Collateral Agent in
accordance with this subsection (c) shall be delivered or subjected to such control upon request of
the Collateral Agent during the continuance of an Event of Default.

     4.4 Investment Related Property.

          4.4.1 Investment Related Property Generally

          (a) Covenants and Agreements. Each Grantor covenants and agrees that until payment in
full of all Obligations (other than unmatured contingent obligations), the cancellation or
termination of all Commitments, the expiration or termination of the Swap Agreement, all Hedge
Agreements and all agreements for Specified Secured Hedge Indebtedness and the cancellation or
expiration of all outstanding Letters of Credit:

          (i) in the event it acquires rights in any Investment Related Property, with a value
in excess of $1,000,000 (except with respect to Pledged Equity Interests) after the date
hereof, it shall deliver to the Collateral Agent a completed Pledge Supplement,
substantially in the form of Exhibit A attached hereto, together with all Supplements to
Schedules thereto, reflecting such new Investment Related Property and all other Investment
Related Property. Notwithstanding the foregoing, it is understood
and agreed that the security interest of the Collateral Agent shall attach to all
Investment Related Property immediately upon any Grantor’s acquisition of rights therein
and shall

17

 

not be affected by the failure of any Grantor to deliver a supplement to Schedule
4.4 as required hereby;

          (ii) except as provided in the next sentence, in the event such Grantor receives any
dividends, interest or distributions on any Investment Related Property, or any securities
or other property upon the merger, consolidation, liquidation or dissolution of any issuer
of any Investment Related Property, then (a) such dividends, interest or distributions and
securities or other property shall be included in the definition of Collateral without
further action and (b) such Grantor shall within ten (10) Business Days take all steps, if
any, necessary or advisable to ensure the validity, perfection, priority and, if
applicable, control of the Collateral Agent over such Investment Related Property
(including, without limitation, delivery thereof to the Collateral Agent) and pending any
such action such Grantor shall be deemed to hold such dividends, interest, distributions,
securities or other property in trust for the benefit of the Collateral Agent and shall
segregate such dividends, distributions, Securities or other property from all other
property of such Grantor. Notwithstanding the foregoing, so long as no Event of Default
shall have occurred and be continuing, the Collateral Agent authorizes each Grantor to
retain all cash dividends and distributions and all payments of interest and principal; and

          (iii) each Grantor consents to the grant by each other Grantor of a Security Interest
in all Investment Related Property to the Collateral Agent.

          (b) Delivery and Control.

          (i) Each Grantor agrees that with respect to any Investment Related Property in which
it currently has rights and which is included in the Collateral it shall comply with the
provisions of this Section 4.4.1(b) on or before the Credit Date and with respect to any
Investment Related Property hereafter acquired by such Grantor and which is included in the
Collateral, it shall comply with the provisions of this Section 4.4.1(b) within (10)
Business Days upon acquiring rights therein, in each case in form and substance reasonably
satisfactory to the Collateral Agent. With respect to any Investment Related Property that
is represented by a certificate or that is an “instrument” with the value in excess of
$1,000,000 (other than any Investment Related Property credited to a Securities Account)
and which is included in the Collateral, it shall cause such certificate or instrument to
be delivered to the Collateral Agent, indorsed in blank by an “effective indorsement” (as
defined in Section 8-107 of the UCC), regardless of whether such certificate constitutes a
“certificated security” for purposes of the UCC. With respect to any Investment Related
Property that is an “uncertificated security” for purposes of the UCC (other than any
“uncertificated securities” credited to a Securities Account) and which is included in the
Collateral, it shall cause the issuer of such uncertificated security to either (i)
register the Collateral Agent as the registered owner thereof on the books and records of
the issuer or (ii) execute an agreement substantially in the form of Exhibit B hereto,
pursuant to which such issuer agrees to comply with the Collateral Agent’s instructions
with respect to such uncertificated security (such instructions only to be given upon an
Event of Default that is continuing in accordance with Section 7 hereof) without further
consent by such Grantor.

          (c) Voting and Distributions.

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          (i) So long as no Event of Default shall have occurred and be continuing:

	 	(1)	 	except as otherwise provided under the covenants and agreements relating to
Investment Related Property in this Agreement or elsewhere herein or in the First Lien
Credit Documents, each Grantor shall be entitled to exercise or refrain from
exercising any and all voting and other consensual rights pertaining to the Investment
Related Property or any part thereof for any purpose not inconsistent with the terms
of this Agreement or the First Lien Credit Documents;
	 
	 	(2)	 	the Collateral Agent, at Grantor’s expense, shall promptly execute and
deliver (or cause to be executed and delivered) to each Grantor all proxies, and other
instruments as such Grantor may from time to time reasonably request for the purpose
of enabling such Grantor with respect to Collateral registered in the name of the
Collateral Agent to exercise the voting and other consensual rights when and to the
extent which it is entitled to exercise pursuant to clause (1) above and receive and
retain dividends and other payments to the extent which it is entitled pursuant to
Section 4.41(a)(ii) above; and
	 
	 	(3)	 	Upon the occurrence and during the continuation of an Event of Default:

	 	(A)	 	all rights of each Grantor to exercise or refrain from
exercising the voting and other consensual rights which it would otherwise be
entitled to exercise pursuant hereto shall cease and all such rights shall
thereupon become vested in the Collateral Agent who shall thereupon have the
sole right to exercise such voting and other consensual rights; and
	 
	 	(B)	 	in order to permit the Collateral Agent to exercise the
voting and other consensual rights which it may be entitled to exercise
pursuant hereto and to receive all dividends and other distributions which it
may be entitled to receive hereunder: (1) each Grantor shall promptly execute
and deliver (or cause to be executed and delivered) to the Collateral Agent
all proxies, dividend payment orders and other instruments as the Collateral
Agent may from time to time reasonably request and (2) each Grantor
acknowledges that the Collateral Agent may utilize the power of attorney set
forth in Section 6.1.

          4.4.2 Pledged Equity Interests

          (a) Representations and Warranties. Each Grantor hereby represents and warrants, on
the Effective Date and on each Credit Date, that:

          (i) Schedule 4.4(A) (as such schedule may be amended or supplemented from time to
time) sets forth under the headings “Pledged Stock, “Pledged LLC Interests,” “Pledged
Partnership Interests” and “Pledged Trust Interests,” respectively, all of the Pledged
Stock, Pledged LLC Interests, Pledged Partnership Interests and Pledged Trust Interests
owned by any Grantor and such Pledged Equity Interests constitute the percentage of issued
and outstanding shares of stock, percentage of membership interests, percentage of
partnership interests or percentage of beneficial interest of the respective issuers
thereof indicated on such Schedule;

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          (ii) it is the record and beneficial owner of the Pledged Equity Interests free of all
Liens, rights or claims of other Persons other than Permitted Liens;

          (iii) without limiting the generality of Section 4.1(a)(v), no consent of any Person
including any other general or limited partner, any other member of a limited liability
company, any other shareholder or any other trust beneficiary is necessary in connection
with the creation, perfection or first priority status of the security interest of the
Collateral Agent in any Pledged Equity Interests or the exercise by the Collateral Agent of
the voting or other rights provided for in this Agreement or the exercise of remedies in
respect thereof;

          (iv) none of the Pledged LLC Interests nor Pledged Partnership Interests are or
represent interests in issuers that: (a) are registered as investment companies or (b) are
dealt in or traded on securities exchanges or markets; and

          (v) except as otherwise set forth on Schedule 4.4(C), none of the Pledged LLC
Interests and Pledged Partnership Interests are or represent interests in issuers that have
opted to be treated as securities under the uniform commercial code of any jurisdiction.

          (b) Covenants and Agreements. Each Grantor covenants and agrees that until payment in
full of all Obligations (other than unmatured contingent obligations), the cancellation or
termination of all Commitments, the expiration or termination of the Swap Agreement, all Hedge
Agreements and all agreements for Specified Secured Hedge Indebtedness and the cancellation or
expiration of all outstanding Letters of Credit:

          (i) unless otherwise permitted under the Credit Agreement or without the prior written
consent of the Collateral Agent, it shall not vote to enable or take any other action to:
(a) amend or terminate any partnership agreement, limited liability company agreement,
certificate of incorporation, by-laws or other organizational documents in any way that
would reasonably be expected to cause a Material Adverse Effect or materially adversely
affects the validity, perfection or priority of the Collateral Agent’s security interest in
any Investment Related Property, (b) permit any issuer of any Pledged Equity Interest to
dispose of all or a material portion of their assets, (c) waive any default under or breach
of any terms of organizational document relating to the issuer of any Pledged Equity
Interest or the terms of any Pledged Debt, or (d) cause any issuer of any Pledged
Partnership Interests or Pledged LLC Interests which are not securities (for purposes of
the UCC) on the date hereof to elect or otherwise take any action to cause such Pledged
Partnership Interests or Pledged LLC Interests to be treated as securities for purposes of
the UCC, unless such Grantor shall promptly notify the Collateral Agent in writing of any
such election or action and, in such event, shall take all steps necessary or advisable to
establish the Collateral Agent’s “control” thereof;

          (ii) Except as otherwise permitted under the First Lien Credit Documents, without the
prior written consent of the Collateral Agent, it shall not permit any issuer of any
Pledged Equity Interest included in the Collateral to merge or consolidate unless the
covenants of the First Lien Credit Documents are complied with; and

          (iii) each Grantor consents to the grant by each other Grantor of a security interest
in all Investment Related Property to the Collateral Agent and, without

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limiting the foregoing, consents following an Event of Default that is continuing to
the transfer of any Pledged Partnership Interest and any Pledged LLC Interest to the
Collateral Agent or its nominee following an Event of Default and to the substitution of
the Collateral Agent or its nominee as a partner in any partnership or as a member in any
limited liability company with all the rights and powers related thereto.

          4.4.3 Pledged Debt

          (a) Representations and Warranties. Each Grantor hereby represents and warrants, on
the Effective Date and each Credit Date, that Schedule 4.4 (as such schedule may be amended or
supplemented from time to time) sets forth under the heading “Pledged Debt” all of the Pledged Debt
owned by any Grantor and included in the Collateral; to its knowledge, all of such Pledged Debt has
been duly authorized, authenticated or issued, and delivered and is the legal, valid and binding
obligation of the issuers thereof and is not in default and constitutes all of the issued and
outstanding inter-company Indebtedness; and

          (b) Covenants and Agreements. Each Grantor covenants and agrees that until payment in
full of all Obligations (other than unmatured contingent obligations), the cancellation or
termination of all Commitments, the expiration or termination of the Swap Agreement, all Hedge
Agreements and all agreements for Specified Secured Hedge Indebtedness and the cancellation or
expiration of all outstanding Letters of Credit, it shall notify the Collateral Agent of any
default under any Pledged Debt that has caused, either in any individual case or in the aggregate,
a Material Adverse Effect.

          4.4.4 Investment Accounts

          (a) Representations and Warranties. Each Grantor hereby represents and warrants, on
the Effective Date and immediately after the payment in full of all obligations outstanding under
the Existing Credit Agreement, and on each Credit Date, that:

          (i) Schedule 4.4 hereto (as such schedule may be amended or supplemented from time to
time) sets forth under the headings “Securities Accounts” and “Commodities Accounts”,
respectively, all of the Securities Accounts and Commodities Accounts in which each Grantor
has an interest and that is included in the Collateral. Each Grantor is the sole
entitlement holder of each such Securities Account and Commodity Account, and such Grantor
has not consented to, and is not otherwise aware of, any Person (other than the Collateral
Agent pursuant hereto) having “control” (within the meanings of Sections 8-106 and 9-106 of
the UCC) over, or any other interest in, any such Securities Account or Commodity Account
or securities or other property credited thereto;

          (ii) Schedule 4.4 hereto (as such schedule may be amended or supplemented from time to
time) sets forth under the headings “Deposit Accounts” all of the Deposit Accounts in which
each Grantor has an interest and that is included in the Collateral. Each Grantor is the
sole account holder of each such Deposit Account and such Grantor has not consented to, and
is not otherwise aware of, any Person (other than the Collateral Agent pursuant hereto)
having either sole dominion and control (within the meaning of common law) or “control”
(within the meanings of Section 9-104 of the UCC) over, or any other interest in, any such
Deposit Account or any money or other property deposited therein; and

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          (iii) Each Grantor has taken all actions necessary, including those specified in
Section 4.4.4(c), to: (a) establish Collateral Agent’s “control” (within the meanings of
Sections 8-106 and 9-106 of the UCC) over any portion of the Investment Related Property
constituting Certificated Securities, Uncertificated Securities, Securities Accounts (other
than Exempt Securities Accounts), Securities Entitlements or Commodities Accounts (each as
defined in the UCC) (other than the Exempt Securities Accounts); (b) establish the
Collateral Agent’s “control” (within the meaning of Section 9-104 of the UCC) over all
Deposit Accounts (other than the Exempt Deposit Accounts); and (c) deliver all Instruments
to the Collateral Agent.

          (b) Covenant and Agreement. Each Grantor covenants and agrees that until payment in
full of all Obligations (other than unmatured contingent obligations), the cancellation or
termination of all Commitments, the expiration or termination of the Swap Agreement, all Hedge
Agreements and all agreements for Specified Secured Hedge Indebtedness and the cancellation or
expiration of all outstanding Letters of Credit, it shall not permit any Investment Account with
assets in excess of $1,000,000 to exist unless a control agreement with respect to any such
Investment Account has been entered into, or in the case of any Investment Account that exists on
the date hereof, has been entered into within 30 days of the date hereof, by the appropriate
Grantor, Collateral Agent and securities intermediary or depository institution at which such
successor or replacement account is to be maintained in accordance with the provisions of Section
4.4.4(c).

          (c) Delivery and Control

          (i) With respect to any Investment Related Property consisting of Securities Accounts
(other than Exempt Securities Accounts) or Securities Entitlements with balance in excess
of $1,000,000 individually and $5,000,000 in the aggregate, it shall cause the securities
intermediary maintaining such Securities Account or Securities Entitlement to enter into,
within 30 days after the opening of such Securities Account, an agreement substantially in
the form of Exhibit C hereto pursuant to which it shall agree to comply with the Collateral
Agent’s “entitlement orders” without further consent by such Grantor. With respect to any
Investment Related Property that is a “Deposit Account,” (other than the Exempt Deposit
Accounts) it shall cause the depositary institution maintaining such account to enter into,
within 30 days after the opening of such Deposit Account, an agreement substantially in the
form of Exhibit D hereto or otherwise reasonably satisfactory to the Collateral Agent,
pursuant to which the Collateral Agent shall have both sole dominion and control over such
Deposit Account (within the meaning of the common law) and “control” (within the meaning of
Section 9-104 of the UCC) over such Deposit Account. Each Grantor shall have entered into
such control agreement or agreements with respect to: (i) any Securities Accounts (other
than Exempt Securities Accounts), Securities Entitlements or Deposit Accounts (other than
the Exempt Deposit Accounts) that exist on the Credit Date, as of or prior to the Credit
Date and (ii) any Securities Accounts (other than Exempt Securities Accounts), Securities
Entitlements or Deposit Accounts (other than the Exempt Deposit Accounts) that are created
or acquired after the Credit Date, as of or prior to the deposit or transfer of any such
Securities Entitlements or funds, whether constituting moneys or investments, into such
Securities Accounts or Deposit Accounts.

          In addition to the foregoing, if any issuer of any Investment Related Property, with a
value in excess of $1,000,000 individually and $5,000,000 in the aggregate, is located in a
jurisdiction outside of the United States, each Grantor shall take such additional actions,

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including, without limitation, causing the issuer to register the pledge on its books and
records or making such filings or recordings, in each case as may be necessary under the
laws of such issuer’s jurisdiction to insure the validity, perfection and priority of the
security interest of the Collateral Agent. Upon the occurrence and during the continuance
of an Event of Default, the Collateral Agent shall have the right, without notice to any
Grantor, to transfer all or any portion of the Investment Related Property to its name or
the name of its nominee or agent. In addition, the Collateral Agent shall have the right
at any time, without notice to any Grantor, to exchange any certificates or instruments
representing any Investment Related Property for certificates or instruments of smaller or
larger denominations.

4.5 Material Contracts.

Covenants and Agreements. Each Grantor covenants and agrees that until payment in
full of all Obligations (other than unmatured contingent obligations), the cancellation or
termination of all Commitments, the expiration or termination of the Swap Agreement, all
Hedge Agreements and all agreements for Specified Secured Hedge Indebtedness and the
cancellation or expiration of all outstanding Letters of Credit:

          (i) in addition to any rights under the Section of this Agreement relating to
Receivables, the Collateral Agent may at any time during the continuance of an Event of
Default notify, or require any Grantor to so notify, the counterparty on any Material
Contract of the security interest of the Collateral Agent therein. In addition, after the
occurrence and during the continuance of an Event of Default, the Collateral Agent may upon
written notice to the applicable Grantor, notify, or require any Grantor to notify, the
counterparty to make all payments under the Material Contracts directly to the Collateral
Agent; and

          (ii) each Grantor shall, within thirty (30) days after entering into any
Non-Assignable Contract that is a Material Contract after the Effective Date, request in
writing the consent of the counterparty or counterparties to such Non-Assignable Contract
pursuant to the terms of such Non-Assignable Contract or applicable law to the assignment
or granting of a security interest in such Non-Assignable Contract to Secured Party and use
its best efforts to obtain such consent as soon as practicable thereafter.

4.6 Letter of Credit Rights.

          (a) Representations and Warranties. Each Grantor hereby represents and warrants, on
the Effective Date and on each Credit Date, that:

          (i) all material letters of credit to which such Grantor has rights is listed on
Schedule 4.6 (as such schedule may be amended or supplemented from time to time) hereto;
and

          (ii) it has obtained the consent of each issuer of any letter of credit in excess of
$1,000,000 in the aggregate to the assignment of the proceeds of the letter of credit to
the Collateral Agent in accordance with Section 4.6(b); provided,
however, that with respect to any letters of credit in existence on the Effective
Date, such consent shall be obtained within 30 days following the Effective Date.

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          (b) Covenants and Agreements. Each Grantor covenants and agrees that until payment in
full of all Obligations (other than unmatured contingent obligations), the cancellation or
termination of all Commitments, the expiration or termination of the Swap Agreement, all Hedge
Agreements and all agreements for Specified Secured Hedge Indebtedness and the cancellation or
expiration of all outstanding Letters of Credit, with respect to any letter of credit in excess of
$1,000,000 in the aggregate hereafter arising, it shall use commercially reasonable efforts to
obtain the consent of the issuer thereof to the assignment of the proceeds of the letter of credit
to the Collateral Agent and shall deliver to the Collateral Agent a completed Pledge Supplement,
substantially in the form of Exhibit A attached hereto, together with all Supplements to Schedules
thereto.

     4.7 Intellectual Property.

          (a) Representations and Warranties. Except as disclosed in Schedule 4.7(H) (as such
schedule may be amended or supplemented from time to time), each Grantor hereby represents and
warrants, on the Effective Date and on each Credit Date, that:

          (i) Schedule 4.7 (as such schedule may be amended or supplemented from time to time)
sets forth a true and complete list of (i) all United States, state and foreign
registrations of and applications for Patents, Trademarks, and Copyrights owned by each
Grantor and (ii) all Patent Licenses, Trademark Licenses, Trade Secret Licenses and
Copyright Licenses material to the business of such Grantor;

          (ii) it is the sole and exclusive owner of the entire right, title, and interest in or
is a licensee to all Intellectual Property listed on Schedule 4.7 (as such schedule may be
amended or supplemented from time to time) (“Grantor Intellectual Property”), and owns or
has the valid right to use all other Intellectual Property used in or necessary to conduct
its business, free and clear of all Liens, claims, encumbrances and licenses, except for
Permitted Liens and the licenses set forth on Schedule 4.7(B), (D), (F) and (G) (as each
may be amended or supplemented from time to time);

          (iii) all Grantor Intellectual Property is subsisting and has not been adjudged
invalid or unenforceable, in whole or in part except as could not reasonably be expected to
have Material Adverse Effect, and each Grantor has performed all acts and has paid all
renewal, maintenance, and other fees and taxes required to maintain each and every
registration and application of Grantor Intellectual Property in full force and effect as
reasonably necessary for the conduct of the business and except as could not reasonably be
expected to have a Material Adverse Effect;

          (iv) no holding, decision, or judgment has been rendered in any action or proceeding
before any court or administrative authority challenging the validity of, such Grantor’s
right to register, or such Grantor’s rights to own or use, any Grantor Intellectual
Property except as could not reasonably be expected to have a Material Adverse Effect and
no such action or proceeding is pending or, to the best of such Grantor’s knowledge,
threatened;

          (v) all registrations and applications for Grantor Intellectual Property are standing
in the name of a Grantor, and none of the Grantor Intellectual
Property has been licensed by any Grantor to any Affiliate or third party, except as
disclosed in Schedule 4.7(B), (D), (F), or (G) (as each may be amended or supplemented from
time to time);

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          (vi) the conduct of each Grantor’s business does not infringe upon or otherwise
violate any trademark, patent, copyright, trade secret or other intellectual property right
owned or controlled by a third party except as could not reasonably be expected to have a
Material Adverse Effect; to Grantor’s knowledge, no claim has been made that the use of any
Intellectual Property owned, licensed or used by Grantor violates the asserted rights of
any third party except as could not reasonably be expected to have a Material Adverse
Effect;

          (vii) to the best of each Grantor’s knowledge, no third party is infringing upon or
otherwise violating any rights in any Intellectual Property owned or used by such Grantor
in any respect that could reasonably be expected to have a Material Adverse Effect;

          (viii) no settlement or consents, covenants not to sue, nonassertion assurances, or
releases have been entered into by Grantor or to which Grantor is bound that adversely
affect Grantor’s rights to own or use any Grantor Intellectual Property except as could not
reasonably be expected to have a Material Adverse Effect; and

          (ix) except in connection with Permitted Liens or as otherwise permitted under the
First Lien Credit Documents, each Grantor has not made a previous assignment, sale,
transfer or agreement constituting a present or future assignment, sale, transfer or
agreement of any Grantor Intellectual Property that has not been terminated or released.
There is no effective financing statement or other document or instrument now executed, or
on file or recorded in any public office, granting a security interest in or otherwise
encumbering any part of the Grantor Intellectual Property, other than in favor of the
Collateral Agent or Permitted Liens.

          (b) Covenants and Agreements. Each Grantor covenants and agrees that until payment in
full of all Obligations (other than unmatured contingent obligations), the cancellation or
termination of all Commitments, the expiration or termination of the Swap Agreement, all Hedge
Agreements and all agreements for Specified Secured Hedge Indebtedness and the cancellation or
expiration of all outstanding Letters of Credit:

          (i) it shall not do any act or omit to do any act whereby any of the Grantor
Intellectual Property which is material to the business of Grantor may lapse, or become
abandoned, dedicated to the public, or unenforceable, or which would adversely affect the
validity, grant, or enforceability of the security interest granted therein except to the
extent a particular item of Intellectual Property is no longer material or necessary to the
business of such Grantor or that the same could not reasonably be expected to have a
Material Adverse Effect;

          (ii) it shall, within a reasonable time from the creation or acquisition of any
Copyrightable work the registration of which is material to the business of Grantor, apply
to register the Copyright in the United States Copyright Office where warranted in the
Grantor’s reasonable business judgment, except where the failure to do the same could not
reasonably be expected to have a Material Adverse Effect;

          (iii) it shall (within a reasonable time after any Grantor obtains knowledge thereof)
notify the Collateral Agent if it knows that any item of the Grantor Intellectual Property
that is material to the business of any Grantor has become (a) abandoned or dedicated to
the public or placed in the public domain, (b) invalid or

25

 

unenforceable, or (c) subject to
any material adverse determination or development (including the institution of
proceedings) in any action or proceeding in the United States Patent and Trademark Office,
the United States Copyright Office, any state registry or any court;

          (iv) it shall, where warranted in Grantor’s reasonable business judgment, take all
reasonable steps in the United States Patent and Trademark Office, the United States
Copyright Office or any state registry to pursue any application and maintain any
registration of each Trademark, Patent, and Copyright owned by any Grantor and material to
its business which is now or shall become included in the Grantor Intellectual Property
including, but not limited to, those items on Schedule 4.7(A), (C) and (E) (as each may be
amended or supplemented from time to time);

          (v) it shall (within a reasonable time after any Grantor obtains knowledge thereof)
report to the Collateral Agent (i) the filing of any application to register any material
Intellectual Property with the United States Patent and Trademark Office, the United States
Copyright Office, or any state registry (whether such application is filed by such Grantor
or through any agent, employee, licensee, or designee thereof) and (ii) the registration of
any material Intellectual Property by any such office, in each case by executing and
delivering to the Collateral Agent a completed Pledge Supplement, substantially in the form
of Exhibit A attached hereto, together with all Supplements to Schedules thereto;

          (vi) it shall, promptly upon the reasonable request of the Collateral Agent, execute
and deliver to the Collateral Agent any document required to acknowledge, confirm,
register, record, or perfect the Collateral Agent’s interest in any part of the Grantor
Intellectual Property, whether now owned or hereafter acquired; and

          (vii) after the occurrence and during the continuance of an Event of Default, it shall
continue to collect, at its own expense, all amounts due or to become due to such Grantor
in respect of the Grantor Intellectual Property or any portion thereof. In connection with
such collections, each Grantor may take (and, at the Collateral Agent’s reasonable
direction, shall take) such action as such Grantor or, after the occurrence and during the
continuance of an Event of Default, the Collateral Agent may deem reasonably necessary or
advisable to enforce collection of such amounts. Notwithstanding the foregoing, the
Collateral Agent shall have the right at any time, to notify, or require any Grantor to
notify, any obligors with respect to any such amounts of the existence of the security
interest created hereby.

4.8 Commercial Tort Claims

          (a) Representations and Warranties. Each Grantor hereby represents and warrants, on
the Effective Date and on each Credit Date, that Schedule 4.8 (as such schedule may be amended or
supplemented from time to time) sets forth all Commercial Tort Claims of each Grantor in excess of
$1,000,000 individually or $5,000,000 in the aggregate; and

          (b) Covenants and Agreements. Each Grantor covenants and agrees that until payment in
full of all Obligations (other than unmatured contingent obligations), the cancellation or
termination of all Commitments, the expiration or termination of the Swap Agreement, all Hedge
Agreements and all agreements for Specified Secured Hedge Indebtedness and the cancellation or
expiration of all outstanding Letters of Credit, with respect to any

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Commercial Tort Claim in
excess of $1,000,000 individually or $5,000,000 in the aggregate hereafter arising it shall deliver
to the Collateral Agent a completed Pledge Supplement, substantially in the form of Exhibit A
attached hereto, together with all Supplements to Schedules thereto, identifying such new
Commercial Tort Claims.

SECTION 5. ACCESS; RIGHT OF INSPECTION AND FURTHER ASSURANCES;
ADDITIONAL GRANTORS.

     5.1 Access; Right of Inspection. The Collateral Agent shall at all reasonable times with reasonable notice have full and
free access during normal business hours and without unreasonable interruption of business to all
the books, correspondence and records of each Grantor, and the Collateral Agent and its
representatives may examine the same, take extracts therefrom and make photocopies thereof, and
each Grantor agrees to render to the Collateral Agent, at such Grantor’s cost and expense, such
clerical and other assistance as may be reasonably requested with regard thereto. The Collateral
Agent and its representatives shall at all reasonable times with reasonable notice also have the
right during normal business hours and without unreasonable interruption of business to enter any
premises of each Grantor and inspect any property of each Grantor where any of the Collateral of
such Grantor granted pursuant to this Agreement is located for the purpose of inspecting the same,
observing its use or otherwise protecting its interests therein.

     5.2 Further Assurances.

          (a) Each Grantor agrees that from time to time, at the expense of such Grantor, that it shall
promptly execute and deliver all further instruments and documents, and take all further action,
that may be necessary and that the Collateral Agent may reasonably request, in order to create
and/or maintain the validity, perfection or priority of and protect any security interest granted
hereby or to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder
with respect to any Collateral. Without limiting the generality of the foregoing, each Grantor
shall:

          (i) file such financing or continuation statements, or amendments thereto, and execute
and deliver such other agreements, instruments, endorsements, powers of attorney or
notices, as may be necessary and as the Collateral Agent may reasonably request, in order
to perfect and preserve the security interests granted or purported to be granted hereby;

          (ii) take all actions necessary to ensure the recordation of appropriate evidence of
the liens and security interest granted hereunder in the Grantor Intellectual Property with
any intellectual property registry in the United States in which said Grantor Intellectual
Property is registered or in which an application for registration is pending including,
without limitation, the United States Patent and Trademark Office, the United States
Copyright Office, the various Secretaries of State;

          (iii) at any reasonable time, upon request by the Collateral Agent, assemble the
Collateral and allow inspection of the Collateral by the Collateral Agent, or persons
designated by the Collateral Agent; and

          (iv) at the Collateral Agent’s request, appear in and defend any action or proceeding
that may affect such Grantor’s title to or the Collateral Agent’s security interest in all
or any part of the Collateral.

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          (b) Each Grantor hereby authorizes the Collateral Agent to file a Record or Records,
including, without limitation, financing or continuation statements, and amendments thereto, in any
jurisdictions and with any filing offices as the Collateral Agent may determine, in its sole
discretion, are necessary or advisable to perfect the security interest granted to the Collateral
Agent herein. Such financing statements may describe the Collateral in the same manner as
described herein or may contain an indication or description of collateral that describes such
property in any other manner as the Collateral Agent may determine, in its sole discretion, is
necessary, advisable or prudent to ensure the perfection of the security interest in the Collateral
granted to the Collateral Agent herein, including, without limitation, describing such property as
“all assets” or “all personal property, whether now owned or hereafter acquired.” Each Grantor
shall furnish to the Collateral Agent from time to time statements and schedules further
identifying and describing the Collateral and such other reports in connection with the Collateral
as the Collateral Agent may reasonably request, all in reasonable detail.

          (c) Each Grantor hereby authorizes the Collateral Agent to modify this Agreement after
obtaining such Grantor’s approval of or signature to such modification by amending Schedule 4.7 (as
such schedule may be amended or supplemented from time to time) to include reference to any right,
title or interest in any existing Grantor Intellectual Property or any Grantor Intellectual
Property acquired or developed by any Grantor after the execution hereof or to delete any reference
to any right, title or interest in any Intellectual Property in which any Grantor no longer has or
claims any right, title or interest.

     5.3 Additional Grantors. From time to time subsequent to the date hereof, additional Persons may become parties
hereto as additional Grantors (each, an “Additional Grantor”), by executing a Counterpart
Agreement. Upon delivery of any such counterpart agreement to the Collateral Agent, notice of
which is hereby waived by Grantors, each Additional Grantor shall be a Grantor and shall be as
fully a party hereto as if Additional Grantor were an original signatory hereto. Each Grantor
expressly agrees that its obligations arising hereunder shall not be affected or diminished by the
addition or release of any other Grantor hereunder, nor by any election of Collateral Agent not to
cause any Subsidiary of Company to become an Additional Grantor hereunder. This Agreement shall be
fully effective as to any Grantor that is or becomes a party hereto regardless of whether any other
Person becomes or fails to become or ceases to be a Grantor hereunder.

SECTION 6. COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT.

     6.1 Power of Attorney. Each Grantor hereby irrevocably appoints the Collateral Agent (such appointment being
coupled with an interest) as such Grantor’s attorney-in-fact, with full authority in the place and
stead of such Grantor and in the name of such Grantor, the Collateral Agent or otherwise, from time
to time in the Collateral Agent’s discretion to take any action and to execute
any instrument that the Collateral Agent may deem reasonably necessary or advisable to
accomplish the purposes of this Agreement, including, without limitation, the following:

          (a) upon the occurrence and during the continuance of any Event of Default, to obtain and
adjust insurance required to be maintained by such Grantor or paid to the Collateral Agent pursuant
to the Credit Agreement;

          (b) upon the occurrence and during the continuance of any Event of Default, to ask for,
demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys
due and to become due under or in respect of any of the Collateral;

28

 

          (c) upon the occurrence and during the continuance of any Event of Default, to receive,
endorse and collect any drafts or other instruments, documents and chattel paper in connection with
clause (b) above;

          (d) upon the occurrence and during the continuance of any Event of Default, to file any claims
or take any action or institute any proceedings that the Collateral Agent may deem necessary or
desirable for the collection of any of the Collateral or otherwise to enforce the rights of the
Collateral Agent with respect to any of the Collateral;

          (e) to prepare and file any UCC financing statements against such Grantor as debtor;

          (f) to prepare, sign, and file for recordation in any United States intellectual property
registry, appropriate evidence of the lien and security interest granted herein in the Grantor
Intellectual Property in the name of such Grantor as debtor;

          (g) upon the occurrence and during the continuance of an Event of Default, to take or cause to
be taken all actions necessary to perform or comply or cause performance or compliance with the
terms of this Agreement, including, without limitation, access to pay or discharge taxes or Liens
(other than Permitted Liens) levied or placed upon or threatened against the Collateral, the
legality or validity thereof and the amounts necessary to discharge the same to be determined by
the Collateral Agent in its sole discretion, any such payments made by the Collateral Agent to
become obligations of such Grantor to the Collateral Agent, due and payable immediately without
demand; and

          (h) upon the occurrence and during the continuance of an Event of Default, generally to sell,
transfer, pledge, make any agreement with respect to or otherwise deal with any of the Collateral
as fully and completely as though the Collateral Agent were the absolute owner thereof for all
purposes, and to do, at the Collateral Agent’s option and such Grantor’s expense, at any time or
from time to time, all acts and things that the Collateral Agent deems reasonably necessary to
protect, preserve or realize upon the Collateral and the Collateral Agent’s security interest
therein in order to effect the intent of this Agreement, all as fully and effectively as such
Grantor might do.

     6.2 No Duty on the Part of Collateral Agent or Secured Parties. The powers conferred on the Collateral Agent hereunder are solely to protect the interests
of the Secured Parties in the Collateral and shall not impose any duty upon the Collateral Agent or
any Secured Party to exercise any such powers. The Collateral Agent and the Secured Parties shall
be accountable only for amounts that they actually receive as a result of the exercise
of such powers, and neither they nor any of their officers, directors, employees or agents
shall be responsible to any Grantor for any act or failure to act hereunder, except for their own
gross negligence or willful misconduct.

SECTION 7. REMEDIES.

     7.1 Generally.

          (a) If any Event of Default shall have occurred and be continuing, the Collateral Agent may,
subject to the terms of and in the manner contemplated by the Intercreditor Agreement, exercise in
respect of the Collateral, in addition to all other rights and remedies provided for herein or
otherwise available to it at law or in equity, all the rights and remedies of

29

 

the Collateral Agent
on default under the UCC (whether or not the UCC applies to the affected Collateral) to collect,
enforce or satisfy any Secured Obligations then owing, whether by acceleration or otherwise, and
also may pursue any of the following separately, successively or simultaneously:

          (i) require any Grantor to, and each Grantor hereby agrees that it shall at its
expense and promptly upon request of the Collateral Agent forthwith, assemble all or part
of the Collateral as directed by the Collateral Agent and make it available to the
Collateral Agent at a place to be designated by the Collateral Agent that is reasonably
convenient to both parties;

          (ii) enter onto the property where any Collateral is located and take possession
thereof with or without judicial process;

          (iii) prior to the disposition of the Collateral, store, process, repair or
recondition the Collateral or otherwise prepare the Collateral for disposition in any
manner to the extent the Collateral Agent deems appropriate; and

          (iv) without notice except as specified below or under the UCC, sell, assign, lease,
license (on an exclusive or nonexclusive basis) or otherwise dispose of the Collateral or
any part thereof in one or more parcels at public or private sale, at any of the Collateral
Agent’s offices or elsewhere, for cash, on credit or for future delivery, at such time or
times and at such price or prices and upon such other terms as the Collateral Agent may
deem commercially reasonable.

          (b) The Collateral Agent or any Secured Party may be the purchaser of any or all of the
Collateral at any public or private (to the extent to the portion of the Collateral being privately
sold is of a kind that is customarily sold on a recognized market or the subject of widely
distributed standard price quotations) sale in accordance with the UCC and the Collateral Agent, as
collateral agent for and representative of the Secured Parties, shall be entitled, for the purpose
of bidding and making settlement or payment of the purchase price for all or any portion of the
Collateral sold at any such sale made in accordance with the UCC, to use and apply any of the
Secured Obligations as a credit on account of the purchase price for any Collateral payable by the
Collateral Agent at such sale. Each purchaser at any such sale shall hold the property sold
absolutely free from any claim or right on the part of any Grantor, and each Grantor hereby waives
(to the extent permitted by applicable law) all rights of redemption, stay and/or appraisal which
it now has or may at any time in the future have under any rule of law or statute now existing or
hereafter enacted. Each Grantor agrees that, to the extent notice of sale shall be required by
law, at least ten (10) days notice to such Grantor of the time and place of any public
sale or the time after which any private sale is to be made shall constitute reasonable
notification. The Collateral Agent shall not be obligated to make any sale of Collateral
regardless of notice of sale having been given. The Collateral Agent may adjourn any public or
private sale from time to time by announcement at the time and place fixed therefor, and such sale
may, without further notice, be made at the time and place to which it was so adjourned. Each
Grantor agrees that it would not be commercially unreasonable for the Collateral Agent to dispose
of the Collateral or any portion thereof by using Internet sites that provide for the auction of
assets of the types included in the Collateral or that have the reasonable capability of doing so,
or that match buyers and sellers of assets. Each Grantor hereby waives any claims against the
Collateral Agent arising by reason of the fact that the price at which any Collateral may have been
sold at such a private sale was less than the price which might have been obtained at a public
sale, even if the Collateral Agent accepts the first offer received and does not offer such
Collateral to more than one offeree,

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provided this section shall not restrict the operation of
Section 9-615(f) of the UCC. If the proceeds of any sale or other disposition of the Collateral
are insufficient to pay all the Secured Obligations, Grantors shall be liable for the deficiency
and the fees of any attorneys employed by the Collateral Agent to collect such deficiency. Each
Grantor further agrees that a breach of any of the covenants contained in this Section will cause
irreparable injury to the Collateral Agent, that the Collateral Agent has no adequate remedy at law
in respect of such breach and, as a consequence, that each and every covenant contained in this
Section shall be specifically enforceable against such Grantor, and such Grantor hereby waives and
agrees not to assert any defenses against an action for specific performance of such covenants
except for a defense that no default has occurred giving rise to the Secured Obligations becoming
due and payable prior to their stated maturities. Nothing in this Section shall in any way alter
the rights of the Collateral Agent hereunder.

          (c) The Collateral Agent may sell the Collateral without giving any warranties as to the
Collateral. The Collateral Agent may specifically disclaim or modify any warranties of title or
the like. This procedure will not be considered to adversely affect the commercial reasonableness
of any sale of the Collateral.

          (d) The Collateral Agent shall have no obligation to marshal any of the Collateral.

     7.2 Application of Proceeds. Except as expressly provided elsewhere in this Agreement, and subject to the terms of the
Intercreditor Agreement, all proceeds received by the Collateral Agent in respect of any sale, any
collection from, or other realization upon all or any part of the Collateral shall be applied in
full or in part by the Collateral Agent against, the Secured Obligations in the following order of
priority: first, to the payment of all costs and expenses of such sale, collection or
other realization, including reasonable compensation to the Collateral Agent and its agents and
counsel, and all other expenses, liabilities and advances made or incurred by the Collateral Agent
in connection therewith, and all amounts for which the Collateral Agent is entitled to
indemnification hereunder (in its capacity as the Collateral Agent and not as a Lender) and all
advances made by the Collateral Agent hereunder for the account of the applicable Grantor, and to
the payment of all costs and expenses paid or incurred by the Collateral Agent in connection with
the exercise of any right or remedy hereunder or under the Credit Agreement, all in accordance with
the terms hereof or thereof; second, to the extent of any excess of such proceeds, to the
payment of all other Secured Obligations for the ratable benefit of the Secured Parties; and
third, to the extent of any excess of such proceeds, to the payment to or upon the order of
such
Grantor or to whosoever may be lawfully entitled to receive the same or as a court of
competent jurisdiction may direct.

     7.3 Sales on Credit. If Collateral Agent sells any of the Collateral upon credit, Grantor will be credited only
with payments actually made by purchaser and received by Collateral Agent and applied to
indebtedness of the purchaser. In the event the purchaser fails to pay for the Collateral,
Collateral Agent may resell the Collateral and Grantor shall be credited with proceeds of the sale.

     7.4 Deposit Accounts.

     If any Event of Default shall have occurred and be continuing, the Collateral Agent may apply
the balance from any Deposit Account (other than the Exempt Deposit Accounts) or instruct the bank
at which any Deposit Account (other than the Exempt Deposit Accounts) is

31

 

maintained to pay the
balance of any Deposit Account (other than the Exempt Deposit Accounts) to or for the benefit of
the Collateral Agent.

     7.5 Investment Related Property.

     Each Grantor recognizes that, by reason of certain prohibitions contained in the Securities
Act and applicable state securities laws, the Collateral Agent may be compelled, with respect to
any sale of all or any part of the Investment Related Property conducted without prior registration
or qualification of such Investment Related Property under the Securities Act and/or such state
securities laws, to limit purchasers to those who will agree, among other things, to acquire the
Investment Related Property for their own account, for investment and not with a view to the
distribution or resale thereof. Each Grantor acknowledges that any such private sale may be at
prices and on terms less favorable than those obtainable through a public sale without such
restrictions (including a public offering made pursuant to a registration statement under the
Securities Act) and, notwithstanding such circumstances, each Grantor agrees that any such private
sale shall be deemed to have been made in a commercially reasonable manner and that the Collateral
Agent shall have no obligation to engage in public sales and no obligation to delay the sale of any
Investment Related Property for the period of time necessary to permit the issuer thereof to
register it for a form of public sale requiring registration under the Securities Act or under
applicable state securities laws, even if such issuer would, or should, agree to so register it.
If the Collateral Agent determines to exercise its right to sell any or all of the Investment
Related Property, upon written request, each Grantor shall and shall cause each issuer of any
Pledged Stock to be sold hereunder, each partnership and each limited liability company from time
to time to furnish to the Collateral Agent all such information as the Collateral Agent may request
in order to determine the number and nature of interest, shares or other instruments included in
the Investment Related Property which may be sold by the Collateral Agent in exempt transactions
under the Securities Act and the rules and regulations of the Securities and Exchange Commission
thereunder, as the same are from time to time in effect.

     7.6 Intellectual Property.

          (a) Anything contained herein to the contrary notwithstanding, upon the occurrence and during
the continuation of an Event of Default:

          (i) the Collateral Agent shall have the right (but not the obligation) to bring suit
or otherwise commence any action or proceeding in the name of
any Grantor, the Collateral Agent or otherwise, in the Collateral Agent’s sole
discretion, to enforce any Grantor Intellectual Property, in which event such Grantor
shall, at the request of the Collateral Agent, do any and all lawful acts and execute any
and all documents reasonably required by the Collateral Agent in aid of such enforcement
and such Grantor shall, upon demand, reimburse and indemnify the Collateral Agent as
provided in Section 11 hereof in connection with the exercise of its rights under this
Section, and, to the extent that the Collateral Agent shall elect not to bring suit to
enforce any Grantor Intellectual Property as provided in this Section, each Grantor agrees
to use commercially reasonable measures to the extent necessary, whether by action, suit,
proceeding or otherwise, to prevent the infringement or other violation of any of such
Grantor’s rights in any Grantor Intellectual Property that is material to its business by
others and for that purpose agrees to diligently maintain any action, suit or proceeding
against any Person so infringing as shall be necessary to prevent such infringement or
violation;

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          (ii) upon written demand from the Collateral Agent, each Grantor shall grant,
assign, convey or otherwise transfer to the Collateral Agent or such Collateral Agent’s
designee all of such Grantor’s right, title and interest in and to the Grantor Intellectual
Property and shall execute and deliver to the Collateral Agent such documents as are
necessary or appropriate to carry out the intent and purposes of this Agreement;

          (iii) each Grantor agrees that such an assignment and/or recording shall be applied to
reduce the Secured Obligations outstanding only to the extent that the Collateral Agent (or
any Secured Party) receives cash proceeds in respect of the sale of, or other realization
upon, the Grantor Intellectual Property; and

          (iv) the Collateral Agent shall have the right to notify, or require each Grantor to
notify, any obligors with respect to amounts due or to become due to such Grantor in
respect of the Grantor Intellectual Property, of the existence of the security interest
created herein, to direct such obligors to make payment of all such amounts directly to the
Collateral Agent, and, upon such notification and at the expense of such Grantor, to
enforce collection of any such amounts and to adjust, settle or compromise the amount or
payment thereof, in the same manner and to the same extent as such Grantor might have done;

	 	(1)	 	all amounts and proceeds (including checks and other instruments) received by
Grantor in respect of amounts due to such Grantor in respect of the Collateral or any
portion thereof shall be received in trust for the benefit of the Collateral Agent
hereunder, shall be segregated from other funds of such Grantor and shall be forthwith
paid over or delivered to the Collateral Agent in the same form as so received (with
any necessary endorsement) to be held as cash Collateral and applied as provided by
Section 7.7 hereof; and
	 
	 	(2)	 	Grantor shall not adjust, settle or compromise the amount or payment of any
such amount or release wholly or partly any obligor with respect thereto or allow any
credit or discount thereon.

            (b) If (i) an Event of Default shall have occurred and, by reason of cure, waiver,
modification, amendment or otherwise, no longer be continuing, (ii) no other Event of Default shall
have occurred and be continuing, (iii) an assignment or other transfer to the Collateral Agent of
any rights, title and interests in and to the Grantor Intellectual Property shall have been
previously made and shall have become absolute and effective, and (iv) the Secured Obligations
shall not have become immediately due and payable, upon the written request of any Grantor, the
Collateral Agent shall promptly execute and deliver to such Grantor, at such Grantor’s sole cost
and expense, such assignments or other transfer as may be necessary to reassign to such Grantor any
such rights, title and interests as may have been assigned to the Collateral Agent as aforesaid,
subject to any disposition thereof that may have been made by the Collateral Agent; provided, after
giving effect to such reassignment, the Collateral Agent’s security interest granted pursuant
hereto, as well as all other rights and remedies of the Collateral Agent granted hereunder, shall
continue to be in full force and effect; and provided further, the rights, title and interests so
reassigned shall be free and clear of any other Liens granted by or on behalf of the Collateral
Agent and the Secured Parties.

            (c) Solely for the purpose of enabling the Collateral Agent to exercise rights and remedies
under this Section 7 after an Event of Default and at such time as the Collateral

33

 

Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor hereby
grants to the Collateral Agent, to the extent it has the right to do so, an irrevocable,
nonexclusive license (exercisable without payment of royalty or other compensation to such
Grantor), subject, in the case of Trademarks, to sufficient rights to quality control and
inspection in favor of such Grantor to avoid the risk of invalidation of said Trademarks, to use,
operate under, license, or sublicense any Intellectual Property now owned or hereafter acquired by
such Grantor, and wherever the same may be located.

     7.7 Cash Proceeds. In addition to the rights of the Collateral Agent specified in Section 4.3
with respect to payments of Receivables, all proceeds of any Collateral received by any Grantor
consisting of cash, checks and other non-cash items (collectively, “Cash Proceeds”) shall be held
by such Grantor in trust for the Collateral Agent, segregated from other funds of such Grantor, and
shall, forthwith upon receipt by such Grantor, unless otherwise provided pursuant to Section
4.4(a)(ii), be turned over to the Collateral Agent in the exact form received by such Grantor (duly
indorsed by such Grantor to the Collateral Agent, if required) and held by the Collateral Agent in
the Collateral Account. Any Cash Proceeds received by the Collateral Agent (whether from a Grantor
or otherwise): (i) if no Event of Default shall have occurred and be continuing, shall be held by
the Collateral Agent for the ratable benefit of the Secured Parties, as collateral security for the
Secured Obligations (whether matured or unmatured) and (ii) if an Event of Default shall have
occurred and be continuing, may, in the sole discretion of the Collateral Agent, (A) be held by the
Collateral Agent for the ratable benefit of the Secured Parties, as collateral security for the
Secured Obligations (whether matured or unmatured) and/or (B) then or at any time thereafter may be
applied by the Collateral Agent against the Secured Obligations then due and owing.

SECTION 8. COLLATERAL AGENT.

     The Collateral Agent has been appointed to act as Collateral Agent hereunder by Lenders, the
Swap Counterparty and each Specified Hedge Counterparty, if any, and, by their acceptance of the
benefits hereof, the other Secured Parties. The Collateral Agent shall be obligated, and shall have
the right hereunder, to make demands, to give notices, to exercise or refrain from exercising any
rights, and to take or refrain from taking any action (including, without limitation, the release
or substitution of Collateral), solely in accordance with this Agreement and the other First Lien
Credit Documents. In furtherance of the foregoing provisions of this Section, each Secured Party,
by its acceptance of the benefits hereof, agrees that it shall have no right individually to
realize upon any of the Collateral hereunder, it being understood and agreed by such Secured Party
that all rights and remedies hereunder may be exercised solely by the Collateral Agent for the
benefit of Secured Parties in accordance with the terms of this Section. Collateral Agent may
resign at any time by giving thirty (30) days’ prior written notice thereof to Lenders and the
Grantors, and Collateral Agent may be removed at any time with or without cause by an instrument or
concurrent instruments in writing delivered to the Grantors and Collateral Agent signed by the
Company and the Required First Lien Creditors. Upon any such notice of resignation or any such
removal, Required First Lien Creditors shall have the right, upon five (5) Business Days’ notice to
the Administrative Agent, to appoint a successor Collateral Agent with the consent of the Company
(not to be unreasonably withheld) (provided that no such consent would be required during the
continuance of any Event of Default). Upon the acceptance of any appointment as Collateral Agent
hereunder by a successor Collateral Agent, that successor Collateral Agent shall thereupon succeed
to and become vested with all the rights, powers, privileges and duties of the retiring or removed
Collateral Agent under this Agreement, and the retiring or removed Collateral Agent under this
Agreement shall promptly (i) transfer to such successor Collateral Agent all sums, Securities and
other items of Collateral held hereunder,

34

 

together with all records and other documents necessary
or appropriate in connection with the
performance of the duties of the successor Collateral Agent under this Agreement, and (ii)
execute and deliver to such successor Collateral Agent or otherwise authorize the filing of such
amendments to financing statements, and take such other actions, as may be necessary or appropriate
in connection with the assignment to such successor Collateral Agent of the security interests
created hereunder, whereupon such retiring or removed Collateral Agent shall be discharged from its
duties and obligations under this Agreement. After any retiring or removed Collateral Agent’s
resignation or removal hereunder as the Collateral Agent, the provisions of this Agreement shall
inure to its benefit as to any actions taken or omitted to be taken by it under this Agreement
while it was the Collateral Agent hereunder.

SECTION 9. CONTINUING SECURITY INTEREST; TRANSFER OF LOANS; RELEASES.

     This Agreement shall create a continuing security interest in the Collateral and shall remain
in full force and effect until the payment in full of all Secured Obligations, the cancellation or
termination of the Commitments, the expiration or termination of the Swap Agreement, all Hedge
Agreements and all agreements for Specified Secured Hedge Indebtedness, and the cancellation or
expiration of all outstanding Letters of Credit, be binding upon each Grantor, its successors and
assigns, and inure, together with the rights and remedies of the Collateral Agent hereunder, to the
benefit of the Collateral Agent and its successors, transferees and assigns. Each of the parties
hereto agrees that this Agreement as amended as of the date hereof supersedes the Agreement as
executed on June 24, 2005. Without limiting the generality of the foregoing, but subject to the
terms of the Credit Agreement, any Lender may assign or otherwise transfer any Loans held by it to
any other Person, and such other Person shall thereupon become vested with all the benefits in
respect thereof granted to Lenders herein or otherwise. Upon the payment in full of all Secured
Obligations, the cancellation or termination of the Commitments, the expiration or termination of
the Swap Agreement, all Hedge Agreements and all agreements for Specified Secured Hedge
Indebtedness, and the cancellation or expiration of all outstanding Letters of Credit, the security
interest granted hereby shall automatically terminate hereunder and of record and all rights to the
Collateral shall revert to Grantors. Upon any such termination the Collateral Agent shall, at
Grantors’ expense, execute and deliver to Grantors or otherwise authorize the filing of such
documents as Grantors shall reasonably request, including financing statement amendments to
evidence such termination. Upon any disposition of property including Capital Stock of a Grantor
permitted by the First Lien Credit Documents, the Liens granted herein shall be deemed to be
automatically released and such property shall automatically revert to the applicable Grantor, or
such Grantor shall be automatically released, as the case may be, in each case, with no further
action on the part of any Person. The Collateral Agent shall, at Grantor’s expense, execute and
deliver or otherwise authorize the filing of such documents as Grantors shall reasonably request,
in form and substance reasonably satisfactory to the Collateral Agent, including financing
statement amendments to evidence such release.

SECTION 10. RIGHTS UNDER HEDGE AGREEMENTS; RIGHTS OF HOLDERS OF SPECIFIED SECURED HEDGE
INDEBTEDNESS.

     Neither this Agreement, nor any other Credit Document nor any Hedge Agreement will create (or
be deemed to create) in favor of any Lender Counterparty that is a party thereto or any Specified
Hedge Counterparty any rights in connection with the management or release of any Collateral or of
the obligations of any Guarantor under the Credit Documents except as expressly provided in Section
9 of this Agreement.

35

 

SECTION 11. STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM.

     The powers conferred on the Collateral Agent hereunder are solely to protect its interest in
the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the
exercise of reasonable care in the custody of any Collateral in its possession and the accounting
for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any
Collateral or as to the taking of any necessary steps to preserve rights against prior parties or
any other rights pertaining to any Collateral. The Collateral Agent shall be deemed to have
exercised reasonable care in the custody and preservation of Collateral in its possession if such
Collateral is accorded treatment substantially equal to that which the Collateral Agent accords its
own property. Neither the Collateral Agent nor any of its directors, officers, employees or agents
shall be liable for failure to demand, collect or realize upon all or any part of the Collateral or
for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any
Collateral upon the request of any Grantor or otherwise. If any Grantor fails to perform any
agreement contained herein, the Collateral Agent may itself perform, or cause performance of, such
agreement, and the expenses of the Collateral Agent incurred in connection therewith shall be
payable by each Grantor under Section 10.2 of the Credit Agreement.

SECTION 12. MISCELLANEOUS.

     Any notice required or permitted to be given under this Agreement shall be given in accordance
with Section 10.1 of the Credit Agreement. No failure or delay on the part of the Collateral Agent
in the exercise of any power, right or privilege hereunder or under any other First Lien Credit
Document shall impair such power, right or privilege or be construed to be a waiver of any default
or acquiescence therein, nor shall any single or partial exercise of any such power, right or
privilege preclude other or further exercise thereof or of any other power, right or privilege.
All rights and remedies existing under this Agreement and the other First Lien Credit Documents are
cumulative to, and not exclusive of, any rights or remedies otherwise available. In case any
provision in or obligation under this Agreement shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations,
or of such provision or obligation in any other jurisdiction, shall not in any way be affected or
impaired thereby. All covenants hereunder shall be given independent effect so that if a
particular action or condition is not permitted by any of such covenants, the fact that it would be
permitted by an exception to, or would otherwise be within the limitations of, another covenant
shall not avoid the occurrence of a Default or an Event of Default if such action is taken or
condition exists. This Agreement shall be binding upon and inure to the benefit of the Collateral
Agent and Grantors and their respective successors and permitted assigns. Except as permitted
under the First Lien Credit Documents, no Grantor shall, without the prior written consent of the
Collateral Agent given in accordance with the Credit Agreement and the Swap Agreement, assign any
right, duty or obligation hereunder. This Agreement and the other First Lien Credit Documents
embody the entire agreement and understanding between Grantors and the Collateral Agent and
supersede all prior agreements and understandings between such parties relating to the subject
matter hereof and thereof. Accordingly, the First Lien Credit Documents may not be contradicted by
evidence of prior, contemporaneous or subsequent oral agreements of the parties. There are no
unwritten oral agreements between the parties. This Agreement may be executed in one or more
counterparts and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument; signature pages may be detached from multiple separate
counterparts and attached to a single counterpart so that all signature pages are physically
attached to the same document.

36

 

          THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY,
AND SHALL BE CONSTRUED
AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS
CONFLICTS OF LAW PROVISIONS THAT WOULD REQUIRE APPLICATION OF LAWS OF ANOTHER STATE.

37

 

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

	 	 	 	 	 
	 	COFFEYVILLE RESOURCES, LLC

 	 
	 	By:  	
/s/ James T. Rens 	 
	 	 	Name:  	James T. Rens 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	CL JV HOLDINGS, LLC

 	 
	 	By:  	
/s/ James T. Rens 	 
	 	 	Name:  	James T. Rens 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	COFFEYVILLE PIPELINE, INC.

 	 
	 	By:  	
/s/ James T. Rens 	 
	 	 	Name:  	James T. Rens 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	COFFEYVILLE REFINING AND MARKETING, INC.

 	 
	 	By:  	
/s/ James T. Rens 	 
	 	 	Name:  	James T. Rens 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	COFFEYVILLE NITROGEN FERTILIZERS, INC.

 	 
	 	By:  	
/s/ James T. Rens 	 
	 	 	Name:  	James T. Rens 	 
	 	 	Title:  	Chief Financial Officer 	 

38

 

	 	 	 	 	 

	 	 	 	 	 
	 	COFFEYVILLE CRUDE TRANSPORTATION, INC.

 	 
	 	By:  	
/s/ James T. Rens 	 
	 	 	Name:  	James T. Rens 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	COFFEYVILLE TERMINAL, INC.

 	 
	 	By:  	
/s/ James T. Rens 	 
	 	 	Name:  	James T. Rens 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	COFFEYVILLE RESOURCES PIPELINE, LLC

 	 
	 	By:  	
/s/ James T. Rens 	 
	 	 	Name:  	James T. Rens 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	COFFEYVILLE RESOURCES REFINING AND MARKETING, LLC

 	 
	 	By:  	
/s/ James T. Rens 	 
	 	 	Name:  	James T. Rens 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	COFFEYVILLE RESOURCES NITROGEN FERTILIZERS, LLC

 	 
	 	By:  	
/s/ James T. Rens 	 
	 	 	Name:  	James T. Rens 	 
	 	 	Title:  	Chief Financial Officer 	 

39

 

	 	 	 	 	 

	 	 	 	 	 
	 	COFFEYVILLE RESOURCES CRUDE TRANSPORTATION, LLC

 	 
	 	By:  	
/s/ James T. Rens 	 
	 	 	Name:  	James T. Rens 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	COFFEYVILLE RESOURCES TERMINAL, LLC

 	 
	 	By:  	
/s/ James T. Rens 	 
	 	 	Name:  	James T. Rens 	 
	 	 	Title:  	Chief Financial Officer 	 

40

 

	 	 	 	 	 

	 	 	 	 	 
	 	CREDIT SUISSE, 

CAYMAN ISLANDS BRANCH,

as the Collateral Agent

 	 
	 	By:  	
/s/ Thomas R. Cantello 	 
	 	 	Name:  	Thomas R. Cantello 	 
	 	 	Title:  	Vice President	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Denise Alvarez 	 
	 	 	Name:  	Denise Alvarez 	 
	 	 	Title:  	Associate 	 

41

 

	 	 	 	 	 

SCHEDULE 4.1

TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

GENERAL INFORMATION

	(A)	 	Full Legal Name, Type of Organization, Jurisdiction of Organization, Chief Executive
Office/Sole Place of Business (or Residence if Grantor is a Natural Person) and Organizational
Identification Number of each Grantor:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Chief Executive	 	 
	 	 	 	 	 	 	 	 	 	 	Office/Sole Place of	 	 
	 	 	 	 	 	 	 	 	 	 	Business (or	 	 
	Full Legal	 	Type of	 	Jurisdiction of	 	Residence if Grantor	 	 
	Name	 	Organization	 	Organization	 	is a Natural Person)	 	Organization I.D.#
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	(B)	 	Other Names (including any Trade-Name or Fictitious Business Name) under which each Grantor
has conducted business for the past five (5) years:

	 	 	 	 	 
	Full Legal Name	 	Trade Name or Fictitious Business Name
	 
	 	 	 	 

	(C)	 	Changes in Name, Jurisdiction of Organization, Chief Executive Office or Sole Place of
Business (or Principal Residence if Grantor is a Natural Person) and Corporate Structure
within past five (5) years:

	 	 	 	 	 	 	 	 	 
	Name of Grantor	 	Date of Change	 	Description of Change
	 
	 	 	 	 	 	 	 	 

	(D)	 	Agreements pursuant to which any Grantor is found as debtor within past five (5) years:

	 	 	 	 	 
	Name of Grantor	 	Description of Agreement
	 
	 	 	 	 

	(E)	 	Financing Statements:

	 	 	 	 	 
	Name of Grantor	 	Filing Jurisdiction(s)
	 
	 	 	 	 

SCHEDULE 4.1.1

 

 

SCHEDULE 4.2

TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

	 	 	 	 	 
	Name of Grantor	 	Location of Equipment and Inventory
	 
	 	 	 	 

SCHEDULE 4.2-1

 

 

SCHEDULE 4.4

TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

INVESTMENT RELATED PROPERTY

     (A) Pledged Stock:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grantor

	 	Stock

Issuer
	 	Class of
Stock
	 	Certificated

(Y/N)
	 	Stock
Certificate
No.
	 	Par

Value
	 	No. of
Pledged
Stock
	 	% of
Outstanding
Stock of the
Stock Issuer

Pledged LLC Interests:

	 	 	 	 	 	 	 	 	 	 	 
	Grantor
	 	Limited

Liability

Company
	 	Certificated

(Y/N)
	 	Certificate

No. (if any)
	 	No. of Pledged

Units
	 	% of

Outstanding

LLC Interests

of the Limited

Liability

Company

     Pledged Partnership Interests:

	 	 	 	 	 	 	 	 	 	 	 
	Grantor

	 	Partnership
	 	Type of
Partnership
Interests (e.g.,
general or
limited)
	 	Certificated

(Y/N)
	 	Certificate No.

(if any)
	 	% of
Outstanding
Partnership
Interests of the
Partnership

Pledged Trust Interests:

	 	 	 	 	 	 	 	 	 	 	 
	Grantor
	 	Trust
	 	Class of

Trust

Interests
	 	Certificated

(Y/N)
	 	Certificate No.

(if any)
	 	
% of Outstanding

Trust Interests of
the Trust

SCHEDULE 4.4-1

 

 

     Pledged Debt:

	 	 	 	 	 	 	 	 	 	 	 
	Grantor

	 	Issuer
	 	Original Principal

Amount
	 	Outstanding

Principal Balance
	 	Issue Date
	 	Maturity Date

Securities Account:

	 	 	 	 	 	 	 
	Grantor

	 	Share of Securities

Intermediary
	 	Account Number
	 	Account Name

Commodities Accounts:

	 	 	 	 	 	 	 
	Grantor

	 	Name of

Commodities

Intermediary
	 	Account Number
	 	Account Name

     Deposit Accounts:

	 	 	 	 	 	 	 
	Grantor
	 	Name of Depositary

Bank
	 	Account Number
	 	Account Name

     (B)

	 	 	 	 	 
	Name of Grantor

	 	Date of Acquisition
	 	Description of Acquisition

     (C)

	 	 	 
	Name of Grantor

	 	Name of Issuer of Pledged LLC
Interest/Pledged Partnership Interest

SCHEDULE 4.4-2

 

 

SCHEDULE 4.6

TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

	 	 	 
	Name of Grantor	 	Description of Letters of Credit
	 
	 	 

SCHEDULE 4.6-1

 

SCHEDULE 4.7

TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

INTELLECTUAL PROPERTY

	(A)	 	Copyrights
	 
	(B)	 	Copyright Licenses
	 
	(C)	 	Patents
	 
	(D)	 	Patent Licenses
	 
	(E)	 	Trademarks
	 
	(F)	 	Trademark Licenses
	 
	(G)	 	Trade Secret Licenses
	 
	(H)	 	Intellectual Property Exceptions

SCHEDULE 4.7-1

 

SCHEDULE 4.8

TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

	 	 	 
	Name of Grantor	 	Commercial Tort Claims
	 
	 	 

SCHEDULE 4.8-1

 

EXHIBIT A

TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

PLEDGE SUPPLEMENT

     This PLEDGE SUPPLEMENT, dated ___/___/20___, is delivered by [NAME OF GRANTOR] a [NAME OF STATE
OF INCORPORATION] [Corporation] (the “Grantor”) pursuant to the Amended and Restated First Lien
Pledge Security Agreement, dated as of December [___], 2006 (as it may be from time to time amended,
restated, modified or supplemented, the “Security Agreement”), among COFFEYVILLE RESOURCES, LLC,
the other Grantors named therein, and [FIRST LIEN COLLATERAL AGENT], as the Collateral Agent.
Capitalized terms used herein not otherwise defined herein shall have the meanings ascribed thereto
in the Security Agreement.

     Grantor hereby confirms the grant to the Collateral Agent set forth in the Security Agreement
of, and does hereby grant to the Collateral Agent, a security interest in all of Grantor’s right,
title and interest in and to all Collateral to secure the Secured Obligations, in each case whether
now or hereafter existing or in which Grantor now has or hereafter acquires an interest and
wherever the same may be located. Grantor represents and warrants that the attached Supplements to
Schedules accurately and completely set forth all additional information required pursuant to the
Security Agreement and hereby agrees that such Supplements to Schedules shall constitute part of
the Schedules to the Security Agreement.

     IN WITNESS WHEREOF, Grantor has caused this Pledge Supplement to be duly executed and
delivered by its duly authorized officer as of ___/___/20___.

	 	 	 	 	 
	 	 	[NAME OF GRANTOR]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

EXHIBIT A-1

 

SUPPLEMENT TO SCHEDULE 4.1

TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

Additional Information:

	(A)	 	Full Legal Name, Type of Organization, Jurisdiction of Organization, Chief Executive
Office/Sole Place of Business (or Residence if Grantor is a Natural Person) and Organizational
Identification Number of each Grantor:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Chief Executive	 	 
	 	 	 	 	 	 	Office/Sole Place of	 	 
	 	 	 	 	 	 	Business (or	 	 
	 	 	 	 	Jurisdiction of	 	Residence if Grantor	 	 
	Full Legal Name	 	Type of Organization	 	Organization	 	is a Natural Person)	 	Organization I.D.#
	 
	 	 	 	 	 	 	 	 

	(B)	 	Other Names (including any Trade-Name or Fictitious Business Name) under which each Grantor
has conducted business for the past five (5) years:

	 	 	 
	Full Legal Name	 	Trade Name or Fictitious Business Name
	 
	 	 

	(C)	 	Changes in Name, Jurisdiction of Organization, Chief Executive Office or Sole Place of
Business (or Principal Residence if Grantor is a Natural Person) and Corporate Structure
within past five (5) years:

	 	 	 	 	 
	Name of Grantor	 	Date of Change	 	Description of Change
	 
	 	 	 	 

	(D)	 	Agreements pursuant to which any Grantor is found as debtor within past five (5) years:

	 	 	 
	Name of Grantor	 	Description of Agreement
	 
	 	 

	(E)	 	Financing Statements:

	 	 	 
	Name of Grantor	 	Filing Jurisdiction(s)
	 
	 	 

EXHIBIT A-2

 

SUPPLEMENT TO SCHEDULE 4.2

TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

     Additional Information:

	 	 	 
	Name of Grantor	 	Location of Equipment and Inventory
	 
	 	 

EXHIBIT A-3

 

SUPPLEMENT TO SCHEDULE 4.4

TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

Additional Information:

(A)

Pledged Stock:

Pledged Partnership Interests:

Pledged LLC Interests:

Pledged Trust Interests:

Pledged Debt:

Securities Account:

Commodities Accounts:

Deposit Accounts:

(B)

	 	 	 	 	 
	Name of Grantor	 	Date of Acquisition	 	Description of Acquisition
	 
	 	 	 	 

(C)

	 	 	 
	 	 	Name of Issuer of Pledged LLC
	Name of Grantor	 	Interest/Pledged Partnership Interest
	 
	 	 

EXHIBIT A-4

 

SUPPLEMENT TO SCHEDULE 4.5

TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

Additional Information:

	 	 	 
	Name of Grantor	 	Description of Material Contract
	 
	 	 

EXHIBIT A-5

 

SUPPLEMENT TO SCHEDULE 4.6

TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

Additional Information:

	 	 	 
	Name of Grantor	 	Description of Letters of Credit
	 
	 	 

EXHIBIT A-6

 

SUPPLEMENT TO SCHEDULE 4.7

TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

Additional Information:

	(A)	 	Copyrights
	 
	(B)	 	Copyright Licenses
	 
	(C)	 	Patents
	 
	(D)	 	Patent Licenses
	 
	(E)	 	Trademarks
	 
	(F)	 	Trademark Licenses
	 
	(G)	 	Trade Secret Licenses
	 
	(H)	 	Intellectual Property Exceptions

EXHIBIT A-7

 

SUPPLEMENT TO SCHEDULE 4.8

TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

     Additional Information:

	 	 	 
	Name of Grantor	 	Commercial Tort Claims
	 
	 	 

EXHIBIT A-8

 

EXHIBIT B

TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

UNCERTIFICATED SECURITIES CONTROL AGREEMENT

     This Uncertificated Securities Control Agreement dated as of                     , 200___ (this
“Agreement”), among                      (the “Pledgor”), [FIRST LIEN COLLATERAL AGENT], in its
capacity as collateral agent for the First Lien Claimholders (as defined in the Intercreditor
Agreement referenced below, including its successors and assigns from time to time, the “First Lien
Collateral Agent”), and [SECOND LIEN COLLATERAL AGENT] in its capacity as Collateral Agent for the
Second Lien Claimholders (as defined in the Intercreditor Agreement referenced below, including its
successors and assigns from time to time, the “Second Lien Collateral Agent”, and together with the
First Lien Collateral Agent, the “Collateral Agents”), and                     , a                      corporation (the
“Issuer”). Capitalized terms used but not defined herein shall have the meaning assigned in the
Intercreditor Agreement dated December [___], 2006 (as amended, restated, supplemented or otherwise
modified from time to time, the “Intercreditor Agreement”) among COFFEYVILLE RESOURCES, LLC
(“Borrower”), J. Aron & Company, including its successors and assigns from time to time (“J.
Aron”), and the Collateral Agents. All references herein to the “UCC” shall mean the Uniform
Commercial Code as in effect in the State of New York.

     Section 1. Priority of Lien. Pursuant to that certain Amended and Restated First Lien Pledge
and Security Agreement dated as of December [___], 2006 (as amended, restated, supplemented or
otherwise modified from time to time, the “First Lien Security Agreement”), among the Pledgor, the
other grantors party thereto and the First Lien Collateral Agent, and that certain Second Lien
Pledge and Security Agreement dated as of June 24, 2005, and amended as of July 8, 2005 (as
amended, restated, supplemented or otherwise modified from time to time, the “Second Lien Security
Agreement”; and together with the First Lien Security Agreement, the “Security Agreements”), among
the Pledgor, the other grantors party thereto and the Second Lien Collateral Agent, the Pledgor has
granted a security interest in all of the Pledgor’s rights in the Pledged Shares referred to in
Section 2 below to each of the First Lien Collateral Agent and the Second Lien Collateral Agent,
respectively. The First Lien Collateral Agent and Second Lien Collateral Agent, the Pledgor and
the Issuer are entering into this Agreement to perfect each of the First Lien Collateral Agent, and
the Second Lien Collateral Agent’s security interest in such Pledged Shares. As between the First
Lien Collateral Agent and the Second Lien Collateral Agent, the First Lien Collateral Agent shall
have a first priority security interest in such Pledged Shares and the Second Lien Collateral Agent
shall have a second priority security interest in such Pledged Shares in accordance with the
Intercreditor Agreement. The Issuer hereby acknowledges that it has received notice of the
security interests of the First Lien Collateral Agent and the Second Lien Collateral Agent in such
Pledged Shares and hereby acknowledges and consents to such liens.

     Section 2. Registered Ownership of Shares. The Issuer hereby confirms and agrees that as of
the date hereof the Pledgor is the registered owner of                      [shares][membership
interests][partnership interests][other equivalents of capital stock of a corporation] of [capital
stock of] the Issuer (the “Pledged Shares”) and the Issuer shall not change the registered owner of
the Pledged Shares without the prior written consent of the Collateral Agents.

EXHIBIT B-1

 

     Section 3. Instructions. If at any time the Issuer shall receive instructions originated by
the First Lien Collateral Agent relating to the Pledged Shares, the Issuer shall comply with such
instructions without further consent by the Pledgor or any other person. If at any time the Issuer
shall receive instructions originated by the Second Lien Collateral Agent relating to the Pledged
Shares, the Issuer shall comply with such instructions without further consent by the Pledgor or
any other person; provided that, prior to receipt by the Issuer of a Notice of Termination
of First Lien Obligations in the form of Exhibit A attached hereto (“Notice of Termination of First
Lien Obligations”), in the event the Issuer receives conflicting instructions from the Collateral
Agents, the Second Lien Collateral Agent hereby instructs the Issuer to comply with the
instructions of the First Lien Collateral Agent; and provided further that the Second Lien
Collateral Agent shall not give any such instructions other than in accordance with Section 3 of
the Intercreditor Agreement. If the Pledgor is otherwise entitled to issue instructions and such
instructions conflict with any instructions issued by the First Lien Collateral Agent or the Second
Lien Collateral Agent (either with the consent of the First Lien Collateral Agent or following the
receipt by Issuer or a Notice of Termination of First Lien Obligations), if applicable, the Issuer
shall follow the instructions issued by the applicable Collateral Agent.

     Section 4. Additional Representations and Warranties of the Issuer. The Issuer hereby
represents and warrants to the Collateral Agents:

     (a) It has not entered into, and until the termination of this agreement will not enter into,
any agreement with any other person relating the Pledged Shares pursuant to which it has agreed to
comply with instructions issued by such other person.

     (b) It has not entered into, and until the termination of this agreement will not enter into,
any agreement with the Pledgor or the Collateral Agents purporting to limit or condition the
obligation of the Issuer to comply with Instructions as set forth in Section 3 hereof.

     (c) Except for the security interests of the Collateral Agents and of the Pledgor in the
Pledged Shares, the Issuer does not know of any security interest in the Pledged Shares. If any
person asserts any lien, encumbrance or adverse claim (including any writ, garnishment, judgment,
warrant of attachment, execution or similar process) against the Pledged Shares, the Issuer will
promptly notify the Collateral Agents and the Pledgor thereof.

     (d) This Uncertificated Securities Control Agreement is the valid and legally binding
obligation of the Issuer.

     Section 5. Choice of Law. This Agreement shall be governed by the laws of the State of New
York.

     Section 6. Conflict with Other Agreements. In the event of any conflict between this
Agreement (or any portion thereof) and any other agreement now existing or hereafter entered into,
the terms of this Agreement shall prevail. No amendment or modification of this Agreement or
waiver of any right hereunder shall be binding on any party hereto unless it is in writing and is
signed by all of the parties hereto.

     Section 7. Voting Rights. Until such time as the Collateral Agents shall otherwise instruct
the Issuer in writing, the Pledgor shall have the right to vote the Pledged Shares.

     Section 8. Successors; Assignment. The terms of this Agreement shall be binding upon, and
shall inure to the benefit of, the parties hereto and their respective successors and

EXHIBIT B-2

 

assigns. Each Collateral Agent may assign its rights hereunder only with the express written
consent of the Issuer and by sending written notice of such assignment to the Pledgor.

     Section 9. Indemnification of Issuer. The Pledgor and the Collateral Agents hereby agree
that (a) the Issuer is released from any and all liabilities to the Pledgor and the Collateral
Agent arising from the terms of this Agreement and the compliance of the Issuer with the terms
hereof, except to the extent that such liabilities arise from the Issuer’s negligence and (b) the
Pledgor, its successors and assigns shall at all times indemnify and save harmless the Issuer from
and against any and all claims, actions and suits of others arising out of the terms of this
Agreement or the compliance of the Issuer with the terms hereof, except to the extent that such
arises from the Issuer’s negligence, and from and against any and all liabilities, losses, damages,
costs, charges, counsel fees and other expenses of every nature and character arising by reason of
the same, until the termination of this Agreement.

     Section 10. Notices. Any notice, request or other communication required or permitted to be
given under this Agreement shall be in writing and deemed to have been properly given when
delivered in person, or when sent by telecopy or other electronic means and electronic confirmation
of error free receipt is received or two (2) days after being sent by certified or registered
United States mail, return receipt requested, postage prepaid, addressed to the party at the
address set forth below.

	 	 	 	 	 
	 

	 	Pledgor:
	 	[INSERT ADDRESS]
	 

	 	 	 	Attention:
	 

	 	 	 	Telecopier:
	 
	 	 	 	 
	 

	 	First Lien Collateral Agent:
	 	[INSERT ADDRESS]
	 

	 	 	 	Attention:
	 

	 	 	 	Telecopier:
	 
	 	 	 	 
	 

	 	Second Lien Collateral Agent:
	 	[INSERT ADDRESS]
	 

	 	 	 	Attention:
	 

	 	 	 	Telecopier:
	 
	 	 	 	 
	 

	 	Issuer:
	 	[INSERT ADDRESS]
	 

	 	 	 	Attention:
	 

	 	 	 	Telecopier:

     Any party may change its address for notices in the manner set forth above.

     Section 11. Termination. The obligations of the Issuer to the Collateral Agents pursuant to
this Control Agreement shall continue in effect until the security interests of both Collateral
Agents in the Pledged Shares have been terminated pursuant to the terms of the Security Agreements
and each Collateral Agent has notified the Issuer of such termination in writing. Each Collateral
Agent agrees to provide a Notice of Termination in substantially the form of Exhibit B hereto to
the Issuer upon the request of the Pledgor on or after the termination of such Collateral Agent’s
security interest in the Pledged Shares pursuant to the terms of the applicable Security Agreement.
The termination of this Control Agreement shall not terminate the Pledged Shares or alter the
obligations of the Issuer to the Pledgor pursuant to any other agreement with respect to the
Pledged Shares.

EXHIBIT B-3

 

     Section 12. Counterparts. This Agreement may be executed in any number of counterparts, all
of which shall constitute one and the same instrument, and any party hereto may execute this
Agreement by signing and delivering one or more counterparts.

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

	 	 	 	 	 
	 	 	[NAME OF PLEDGOR]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	[FIRST LIEN COLLATERAL AGENT].

as First Lien Collateral Agent
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	[SECOND LIEN COLLATERAL AGENT].

as Second Lien Collateral Agent
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title	 	 
	 
	 	 	 	 
	 	 	[NAME OF ISSUER]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

EXHIBIT B-4

 

EXHIBIT A

TO UNCERTIFICATED SECURITIES CONTROL AGREEMENT

[Letterhead of First Lien Collateral Agent]

NOTICE OF TERMINATION OF FIRST LIEN OBLIGATIONS

[Name of Financial Institution]

[Address]

[Name of Second Lien Collateral Agent]

[Address]

Attention:

			
	Re:	 	Uncertificated Securities Control Agreement dated as of _______, 200_ (as amended, restated, supplemented or otherwise
modified from time to time, the “Control Agreement”) by and among [NAME OF PLEDGOR], [NAME OF FIRST LIEN COLLATERAL AGENT], as First
Lien Collateral Agent (in such capacity, the “First Lien Collateral Agent”), [NAME OF SECOND LIEN COLLATERAL AGENT], as Second Lien
Collateral Agent (in such capacity, the “Second Lien Collateral Agent”) and [NAME OF FINANCIAL INSTITUTION] re: Pledged Shares
issued by [NAME OF ISSUER].

Ladies and Gentlemen:

     You are hereby notified that there has been a Discharge of First Lien Obligations.

     Capitalized terms used but not defined herein shall have the meanings set forth in the Control
Agreement.

	 	 	 	 	 
	 	Sincerely,

[NAME OF FIRST LIEN COLLATERAL AGENT]

as First Lien Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Cc: [PLEDGOR]

EXHIBIT B-A-1

 

EXHIBIT B

TO UNCERTIFICATED SECURITIES CONTROL AGREEMENT

[Letterhead of First/Second Lien Collateral Agent]

[Date]

[Name and Address of Issuer]

Attention:                                         

Re: Termination of Control Agreement

     You are hereby notified that the Uncertificated Securities Control Agreement between you, [the
Pledgor] and the undersigned (a copy of which is attached) is terminated and you have no further
obligations to the undersigned pursuant to such Agreement. Notwithstanding any previous
instructions to you, you are hereby instructed to accept all future directions with respect to
Pledged Shares (as defined in the Uncertificated Control Agreement) from [the Pledgor]. This
notice terminates any obligations you may have to the undersigned with respect to the Pledged
Shares, however nothing contained in this notice shall alter any obligations which you may
otherwise owe to [the Pledgor] pursuant to any other agreement.

     You are instructed to deliver a copy of this notice by facsimile transmission to [insert name
of Pledgor].

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF FIRST/SECOND LIEN 

COLLATERAL AGENT]	 	 
	 	 	    as First/Second Lien Collateral Agent	 	 
	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

EXHIBIT B-B-1

 

EXHIBIT C

TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

SECURITIES ACCOUNT CONTROL AGREEMENT

     This Securities Account Control Agreement dated as of                     , 200___ (this “Agreement”)
among                                          (the “Debtor”), [NAME OF FIRST LIEN COLLATERAL AGENT], in its
capacity as collateral agent for the First Lien Claimholders (as defined in the Intercreditor
Agreement referenced below, including its successors and assigns from time to time, the “First Lien
Collateral Agent”), [NAME OF SECOND LIEN COLLATERAL AGENT], in its capacity as collateral agent for
the Second Lien Claimholders (as defined in the Intercreditor Agreement referenced below, including
its successors and assigns from time to time, the “Second Lien Collateral Agent”, and together with
the First Lien Collateral Agent, the “Collateral Agents”), and                     , in its capacity as a
“securities intermediary” as defined in Section 8-102 of the UCC (in such capacity, the “Securities
Intermediary”). Capitalized terms used but not defined herein shall have the meaning assigned in
the Intercreditor Agreement dated December [___], 2006 (as amended, restated, supplemented or
otherwise modified from time to time, the “Intercreditor Agreement”) among COFFEYVILLE RESOURCES,
LLC (“Borrower”), J. Aron & Company, including its successors and assigns from time to time (“J.
Aron”), and the Collateral Agents. All references herein to the “UCC” shall mean the Uniform
Commercial Code as in effect in the State of New York.

     Section 1. Priority of Lien. Pursuant to that certain Amended and Restated First Lien
Pledge and Security Agreement dated as of December [___], 2006 (as amended, restated, supplemented
or otherwise modified from time to time, the “First Lien Security Agreement”), among the Debtor,
the other grantors party thereto and the First Lien Collateral Agent, and that certain Second Lien
Pledge and Security Agreement dated as of June 24, 2005, and amended as of July 8, 2005 (as
amended, restated, supplemented or otherwise modified from time to time, the “Second Lien Security
Agreement”; and together with the First Lien Security Agreement, the “Security Agreements”), among
the Debtor, the other grantors party thereto and the Second Lien Collateral Agent, the Debtor has
granted a security interest in all of the Debtor’s rights in the Securities Account referred to in
Section 2 below to each of the First Lien Collateral Agent and the Second Lien Collateral Agent,
respectively. The First Lien Collateral Agent and Second Lien Collateral Agent, the Debtor and the
Securities Intermediary are entering into this Agreement to perfect each of the First Lien
Collateral Agent, and the Second Lien Collateral Agent’s security interest in such Securities
Account. As between the First Lien Collateral Agent and the Second Lien Collateral Agent, the
First Lien Collateral Agent shall have a first priority security interest in such Securities
Account and the Second Lien Collateral Agent shall have a second priority security interest in such
Securities Account in accordance with the Intercreditor Agreement. The Securities Intermediary
hereby acknowledges that it has received notice of the security interests of the First Lien
Collateral Agent and the Second Lien Collateral Agent in such Securities Account and hereby
acknowledges and consents to such liens.

     Section 2. Establishment of Securities Account. The Securities Intermediary hereby confirms
and agrees that:

EXHIBIT C-1

 

     (a) The Securities Intermediary has established account number [IDENTIFY ACCOUNT NUMBER] in
the name “[IDENTIFY EXACT TITLE OF ACCOUNT]” (such account and any successor account, the
“Securities Account”) and the Securities Intermediary shall not change the name or account number
of the Securities Account without the prior written consent of (i) prior to delivery of a Notice of
Termination of First Lien Obligations in the form of Exhibit A attached hereto (“Notice of
Termination of First Lien Obligations”), the First Lien Collateral Agent, (ii) subsequent to
delivery of a Notice of Termination of First Lien Obligations, the Second Lien Collateral Agent,
and (iii) prior to delivery pursuant to Section 9(a) of a Notice of Sole Control in substantially
the form set forth in Exhibit B attached hereto (“Notice of Sole Control”), the Debtor;

     (b) All securities or other property underlying any financial assets credited to the
Securities Account shall be registered in the name of the Securities Intermediary, indorsed to the
Securities Intermediary or in blank or credited to another securities account maintained in the
name of the Securities Intermediary and in no case will any financial asset credited to the
Securities Account be registered in the name of the Debtor, payable to the order of the Debtor or
specially indorsed to the Debtor except to the extent the foregoing have been specially indorsed to
the Securities Intermediary or in blank;

     (c) All property delivered to the Securities Intermediary pursuant to the Security Agreement
will be promptly credited to the Securities Account; and

     (d) The Securities Account is a “securities account” within the meaning of Section 8-501 of
the UCC.

     Section 3. “Financial Assets” Election. The Securities Intermediary hereby agrees that each
item of property (including, without limitation, any investment property, financial asset,
security, instrument, general intangible or cash) credited to the Securities Account shall be
treated as a “financial asset” within the meaning of Section 8-102(a)(9) of the UCC.

     Section 4. Control of the Securities Account. If at any time the Securities Intermediary
shall receive any order from the First Lien Collateral Agent directing transfer or redemption of
any financial asset relating to the Securities Account, the Securities Intermediary shall comply
with such entitlement order without further consent by the Debtor or any other person. If at any
time the Securities Intermediary shall receive any entitlement order from the Second Lien
Collateral Agent directing transfer or redemption of any financial asset relating to the Securities
Account, the Securities Intermediary shall comply with such entitlement order without further
consent by the Debtor or any other person; provided that, prior to receipt by the
Securities Intermediary of a Notice of Termination of First Lien Obligations, the Securities
Intermediary shall not comply with any entitlement order issued by the Second Lien Collateral Agent
without the consent of the First Lien Collateral Agent; and provided further that the Second Lien
Collateral Agent shall not issue any entitlement orders other than in accordance with Section 3 of
the Intercreditor Agreement. The Securities Intermediary shall comply with entitlement orders from
the Debtor directing transfer or redemption of any financial asset relating to the Securities
Account until such time as the Securities Intermediary has received a Notice of Sole Control
delivered pursuant to Section 9(a). Until such time as the Securities Intermediary has received a
Notice of Sole Control delivered under Section 9(a), the Securities Intermediary shall be entitled
to distribute to the Debtor all income on the financial assets in the Securities Account. If the
Debtor is otherwise entitled to issue entitlement orders and such orders conflict with any
entitlement order issued by the First Lien Collateral Agent or the Second Lien Collateral Agent
(following the receipt by Financial Institution of a Notice of Termination of First Lien

EXHIBIT C-2

 

Obligations), the Securities Intermediary shall follow the orders issued by the applicable
Collateral Agent.

     Section 5. Subordination of Lien; Waiver of Set-Off. In the event that the Securities
Intermediary has or subsequently obtains by agreement, by operation of law or otherwise a security
interest in the Securities Account or any security entitlement credited thereto, the Securities
Intermediary hereby agrees that such security interest shall be subordinate to the security
interests of the Collateral Agents. The financial assets and other items deposited to the
Securities Account will not be subject to deduction, set-off, banker’s lien, or any other right in
favor of any person other than the Collateral Agents (except that the Securities Intermediary may
set off (i) all amounts due to the Securities Intermediary in respect of customary fees and
expenses for the routine maintenance and operation of the Securities Account and (ii) the face
amount of any checks which have been credited to such Securities Account but are subsequently
returned unpaid because of uncollected or insufficient funds).

     Section 6. Choice of Law. This Agreement and the Securities Account shall each be governed
by the laws of the State of New York. Regardless of any provision in any other agreement, for
purposes of the UCC, New York shall be deemed to be the Securities Intermediary’s jurisdiction
(within the meaning of Section 8-110 of the UCC) and the Securities Account (as well as the
securities entitlements related thereto) shall be governed by the laws of the State of New York.

     Section 7. Conflict with Other Agreements.

     (a) In the event of any conflict between this Agreement (or any portion thereof) and any other
agreement now existing or hereafter entered into, the terms of this Agreement shall prevail;

     (b) No amendment or modification of this Agreement or waiver of any right hereunder shall be
binding on any party hereto unless it is in writing and is signed by all of the parties hereto;

     (c) The Securities Intermediary hereby confirms and agrees that:

     (i) There are no other control agreements entered into between the
Securities Intermediary and the Debtor with respect to the Securities Account;

     (ii) It has not entered into, and until the termination of this Agreement,
will not enter into, any agreement with any other person relating to the
Securities Account and/or any financial assets credited thereto pursuant to which
it has agreed to comply with entitlement orders (as defined in Section 8-102(a)(8)
of the UCC) of such other person; and

     (iii) It has not entered into, and until the termination of this Agreement,
will not enter into, any agreement with the Debtor or either Collateral Agent
purporting to limit or condition the obligation of the Securities Intermediary to
comply with entitlement orders as set forth in Section 4 hereof.

     Section 8. Adverse Claims. Other than the security interests of the Collateral Agents in the
Securities Account, the Securities Intermediary does not know of any security interest in the
Securities Account or in any “financial asset” (as defined in Section 8-102(a) of the UCC)

EXHIBIT C-3

 

credited thereto. If any person asserts any lien, encumbrance or adverse claim (including any
writ, garnishment, judgment, warrant of attachment, execution or similar process) against the
Securities Account or in any financial asset carried therein, the Securities Intermediary will
promptly notify the Collateral Agents and the Debtor thereof.

     Section 9. Maintenance of Securities Account. In addition to, and not in lieu of, the
obligation of the Securities Intermediary to honor entitlement orders as agreed in Section 4
hereof, the Securities Intermediary agrees to maintain the Securities Account as follows:

     (a) Notice of Sole Control. If at any time the First Lien Collateral Agent or, after
delivery of a Notice of Termination of First Lien Obligations, the Second Lien Collateral Agent, as
the case may be, delivers to the Securities Intermediary a Notice of Sole Control in substantially
the form set forth in Exhibit B hereto, the Securities Intermediary agrees that after receipt of
such notice, it will take all instruction with respect to the Securities Account solely from the
appropriate Collateral Agent.

     (b) Voting Rights. Until such time as the Securities Intermediary receives a Notice
of Sole Control pursuant to subsection (a) of this Section 8, the Debtor shall direct the
Securities Intermediary with respect to the voting of any financial assets credited to the
Securities Account.

     (c) Permitted Investments. Until such time as the Securities Intermediary receives a
Notice of Sole Control signed by the applicable Collateral Agent, the Debtor shall direct the
Securities Intermediary with respect to the selection of investments to be made for the Securities
Account; provided, however, that the Securities Intermediary shall not honor any instruction to
purchase any investments other than investments of a type described on Exhibit C hereto.

     (d) Statements and Confirmations. The Securities Intermediary will promptly send
copies of all statements, confirmations and other correspondence concerning the Securities Account
and/or any financial assets credited thereto simultaneously to each of the Debtor and the
Collateral Agents at the address for each set forth in Section 13 of this Agreement.

     (e) Tax Reporting. All items of income, gain, expense and loss recognized in the
Securities Account shall be reported to the Internal Revenue Service and all state and local taxing
authorities under the name and taxpayer identification number of the Debtor.

     Section 10. Representations, Warranties and Covenants of the Securities Intermediary. The
Securities Intermediary hereby makes the following representations, warranties and covenants:

     (a) The Securities Account has been established as set forth in Section 1 above and such
Securities Account will be maintained in the manner set forth herein until termination of this
Agreement; and

     (b) This Agreement is the valid and legally binding obligation of the Securities Intermediary.

     Section 11. Indemnification of Securities Intermediary. The Debtor and the Collateral Agents
hereby agree that (a) the Securities Intermediary is released from any and all liabilities to the
Debtor and the Collateral Agents arising from the terms of this Agreement and the compliance of the
Securities Intermediary with the terms hereof, except to the extent that such liabilities arise
from the Securities Intermediary’s negligence and (b) the Debtor, its successors

EXHIBIT C-4

 

and assigns shall at all times indemnify and save harmless the Securities Intermediary from
and against any and all claims, actions and suits of others arising out of the terms of this
Agreement or the compliance of the Securities Intermediary with the terms hereof, except to the
extent that such arises from the Securities Intermediary’s negligence, and from and against any and
all liabilities, losses, damages, costs, charges, counsel fees and other expenses of every nature
and character arising by reason of the same, until the termination of this Agreement.

     Section 12. Successors; Assignment. The terms of this Agreement shall be binding upon, and
shall inure to the benefit of, the parties hereto and their respective successors and assigns.
Each Collateral Agent may assign its rights hereunder only with the express written consent of the
Securities Intermediary and by sending written notice of such assignment to the Debtor.

     Section 13. Notices. Any notice, request or other communication required or permitted to be
given under this Agreement shall be in writing and deemed to have been properly given when
delivered in person, or when sent by telecopy or other electronic means and electronic confirmation
of error free receipt is received or two (2) days after being sent by certified or registered
United States mail, return receipt requested, postage prepaid, addressed to the party at the
address set forth below.

	 	 	 	 	 
	 

	 	Debtor:
	 	[INSERT ADDRESS]
	 

	 	 	 	Attention:
	 

	 	 	 	Telecopier:
	 
	 	 	 	 
	 

	 	First Lien Collateral Agent:
	 	[INSERT ADDRESS]
	 

	 	 	 	Attention:
	 

	 	 	 	Telecopier:
	 
	 	 	 	 
	 

	 	Second Lien Collateral Agent:
	 	[INSERT ADDRESS]
	 

	 	 	 	Attention:
	 

	 	 	 	Telecopier:
	 
	 	 	 	 
	 

	 	Securities Intermediary:
	 	[INSERT ADDRESS]
	 

	 	 	 	Attention:
	 

	 	 	 	Telecopier:

     Any party may change its address for notices in the manner set forth above.

     Section 14. Termination. The obligations of the Securities Intermediary to the Collateral
Agents pursuant to this Agreement shall continue in effect until the security interest of both
Collateral Agents in the Securities Account has been terminated pursuant to the terms of the
Security Agreements and the applicable Collateral Agent has notified the Securities Intermediary of
such termination in writing. The applicable Collateral Agent agrees to provide Notice of
Termination in substantially the form of Exhibit D hereto to the Securities Intermediary upon the
request of the Debtor on or after the termination of such Collateral Agent’s security interest in
the Securities Account pursuant to the terms of the applicable Security Agreement. The termination
of this Agreement shall not terminate the Securities Account or alter the obligations of the
Securities Intermediary to the Debtor pursuant to any other agreement with respect to the
Securities Account.

EXHIBIT C-5

 

     Section 15. Counterparts. This Agreement may be executed in any number of counterparts, all
of which shall constitute one and the same instrument, and any party hereto may execute this
Agreement by signing and delivering one or more counterparts.

EXHIBIT C-6

 

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

	 	 	 	 	 
	 	 	[NAME OF DEBTOR]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	Name:
	 	 
 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	[NAME OF FIRST LIEN COLLATERAL AGENT]

as First Lien Collateral Agent
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	Name:
	 	 
 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	[NAME OF SECOND LIEN COLLATERAL AGENT]

as Second Lien Collateral Agent
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	Name:
	 	 
 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	[NAME OF SECURITIES INTERMEDIARY]

as Securities Intermediary
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	Name:
	 	 
 
	 

	 	Title:	 	 

EXHIBIT C-7

 

EXHIBIT A

TO SECURITIES ACCOUNT CONTROL AGREEMENT

NOTICE OF TERMINATION OF FIRST LIEN OBLIGATIONS

[Name of Financial Institution]

[Address]

[NAME OF SECOND LIEN COLLATERAL AGENT]

[ADDRESS]

			
	Re:	 	Securities Account Control Agreement dated as of_____, 200__ (as amended, restated,
supplemented or otherwise modified from time to time, the “Control Agreement”) by and among
[NAME OF DEBTOR] (the “Company”), [NAME OF FIRST LIEN COLLATERAL AGENT], as First Lien
Collateral Agent (in such capacity, the “First Lien Collateral Agent”), [NAME OF SECOND LIEN
COLLATERAL AGENT], as Second Lien Collateral Agent (in such capacity, the “Second Lien
Collateral Agent”) and [NAME OF FINANCIAL INSTITUTION] re securities account number
                     and all financial assets credited thereto (the “Account”).

Ladies and Gentlemen:

     You are hereby notified that there has been a Discharge of First Lien Obligations. You are
hereby instructed that you may comply with entitlement orders originated by the Second Lien
Collateral Agent directing transfer or redemption of any financial asset relating to the Account
without our consent, the consent of the Company or the consent of any other person.

     Capitalized terms used but not defined herein shall have the meanings set forth in the Control
Agreement.

	 	 	 	 	 
	 	Sincerely,	 
	 
	 	[NAME OF FIRST LIEN COLLATERAL AGENT]

as First Lien Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Cc: [Debtor]

EXHIBIT C-A-1

 

EXHIBIT B

TO SECURITIES ACCOUNT CONTROL AGREEMENT

[Letterhead of First/Second Lien Collateral Agent]

[Date]

[Name and Address of Securities Intermediary]

Attention:

Re: Notice of Sole Control

Ladies and Gentlemen:

     As referenced in the Securities Account Control Agreement dated as of ___, 200___ among
[NAME OF THE DEBTOR], you and the undersigned (a copy of which is attached), we hereby give you
notice of our sole control over securities account number                      (the “Securities Account”)
and all financial assets credited thereto. You are hereby instructed not to accept any direction,
instructions or entitlement orders with respect to the Securities Account or the financial assets
credited thereto from any person other than the undersigned, unless otherwise ordered by a court of
competent jurisdiction.

     You are instructed to deliver a copy of this notice by facsimile transmission to [NAME OF THE
DEBTOR].

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF FIRST/SECOND LIEN COLLATERAL AGENT]

as First/Second Lien Collateral Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

cc: [NAME OF THE DEBTOR]

EXHIBIT C-B-1

 

EXHIBIT C

TO SECURITIES ACCOUNT CONTROL AGREEMENT

Permitted Investments

[TO COME]

EXHIBIT C-C-1

 

EXHIBIT D

TO SECURITIES ACCOUNT CONTROL AGREEMENT

[Letterhead of First/Second Lien Collateral Agent]

[Date]

[Name and Address of Securities Intermediary]

Attention:

Re: Termination of Securities Account Control Agreement

     You are hereby notified that the Securities Account Control Agreement dated as of ___,
200___ among you, [NAME OF THE DEBTOR] and the undersigned (a copy of which is attached) is
terminated and you have no further obligations to the undersigned pursuant to such Agreement.
Notwithstanding any previous instructions to you, you are hereby instructed to accept all future
directions with respect to account number(s)       from [NAME OF THE DEBTOR]. This notice
terminates any obligations you may have to the undersigned with respect to such account, however
nothing contained in this notice shall alter any obligations which you may otherwise owe to [NAME
OF THE DEBTOR] pursuant to any other agreement.

     You are instructed to deliver a copy of this notice by facsimile transmission to [NAME OF THE
DEBTOR].

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF FIRST/SECOND LIEN COLLATERAL AGENT]

as First/Second Lien Collateral Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

EXHIBIT C-D-1

 

EXHIBIT D

TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

DEPOSIT ACCOUNT CONTROL AGREEMENT

     This
Deposit Account Control Agreement dated as of                     , 200___ (this “Agreement”) among
                     (the “Debtor”), [NAME OF FIRST LIEN COLLATERAL AGENT], in its capacity as collateral
agent for the First Lien Obligations (as defined in the Intercreditor Agreement referenced below,
including its successors and assigns from time to time, the “First Lien Collateral Agent”), [NAME
OF SECOND LIEN COLLATERAL AGENT], in its capacity as Collateral Agent for the Second Lien
Obligations (as defined in the Intercreditor Agreement referenced below, including its successors
and assigns from time to time, the “Second Lien Collateral Agent”, and together with the First Lien
Collateral Agent, the “Collateral Agents”), and                     , in its capacity as a “bank” as
defined in Section 9-102 of the UCC (in such capacity, the “Financial Institution”). Capitalized
terms used herein but not otherwise defined herein shall have the meanings set forth in the
Intercreditor Agreement, dated December [___], 2006 (as amended, restated, supplemented or
otherwise modified from time to time, the “Intercreditor Agreement”), among COFFEYVILLE RESOURCES,
LLC (“Borrower”), J. Aron & Company, including its successors and assigns from time to time (“J.
Aron”), and the Collateral Agents. All references herein to the “UCC” shall mean the Uniform
Commercial Code as in effect in the State of New York.

     Section 1. Priority of Lien. Pursuant to that certain Amended and Restated First Lien Pledge
and Security Agreement dated as of December [___], 2006 (as amended, restated, supplemented or
otherwise modified from time to time, the “First Lien Security Agreement”), among the Debtor, the
other grantors party thereto and the First Lien Collateral Agent, and that certain Second Lien
Pledge and Security Agreement dated as of June 24, 2005, and amended as of July 8, 2005 (as
amended, restated, supplemented or otherwise modified from time to time, the “Second Lien Security
Agreement”; and together with the First Lien Security Agreement, the “Security Agreements”), among
the Debtor, the other grantors party thereto and the Second Lien Collateral Agent, the Debtor has
granted a security interest in all of the Debtor’s rights in the Deposit Account referred to in
Section 2 below to each of the First Lien Collateral Agent and the Second Lien Collateral Agent,
respectively. The First Lien Collateral Agent and Second Lien Collateral Agent, the Debtor and the
Financial Institution are entering into this Agreement to perfect each of the First Lien Collateral
Agent’s, and the Second Lien Collateral Agent’s security interest in the Deposit Account. As
between the First Lien Collateral Agent and the Second Lien Collateral Agent, the First Lien
Collateral Agent shall have a first priority security interest in the Deposit Account and the
Second Lien Collateral Agent shall have a second priority security interest in the Deposit Account
(which relationship between the Collateral Agents is set forth in the Intercreditor Agreement).
The Financial Institution hereby acknowledges that it has received notice of the respective
security interests of the First Lien Collateral Agent and the Second Lien Collateral Agent in the
Deposit Account and hereby acknowledges and consents to such liens.

     Section 2. Establishment of Deposit Account. The Financial Institution hereby confirms and
agrees that:

     (a) The Financial Institution has established account number [IDENTIFY ACCOUNT NUMBER] in the
name “[IDENTIFY EXACT TITLE OF ACCOUNT]” (such account and

EXHIBIT D-1

 

any successor account, the “Deposit Account”) and the Financial Institution shall not change
the name or account number of the Deposit Account without the prior written consent of (i) prior to
delivery of a Notice of Termination of First Lien Obligations in the form of Exhibit A attached
hereto (“Notice of Termination of First Lien Obligations”), the First Lien Collateral Agent, (ii)
subsequent to delivery of a Notice of Termination of First Lien Obligations, the Second Lien
Collateral Agent, (iii) prior to delivery pursuant to Section 8(a) of a Notice of Sole Control in
substantially the form set forth in Exhibit B hereto (“Notice of Sole Control”), the Debtor; and

     (b) The Deposit Account is a “deposit account” within the meaning of Section 9-102(a)(29) of
the UCC.

     Section 3. Control of the Deposit Account. If at any time the Financial Institution shall
receive any instructions originated by the First Lien Collateral Agent directing the disposition of
funds in the Deposit Account, the Financial Institution shall comply with such instructions without
further consent by the Debtor or any other person. If at any time the Financial Institution shall
receive any instructions originated by the Second Lien Collateral Agent directing the disposition
of funds in the Deposit Account, the Financial Institution shall comply with such instructions
without further consent by the Debtor or any other person; provided that, prior to receipt
by the Financial Institution of a Notice of Termination of First Lien Obligations, the Financial
Institution shall not comply with instructions originated by the Second Lien Collateral Agent
without the consent of the First Lien Collateral Agent; and provided further that the Second Lien
Collateral Agent shall not give any such instructions other than in accordance with Section 3 of
the Intercreditor Agreement. The Financial Institution shall comply with instructions from the
Debtor directing the disposition of funds in the Deposit Account until such time as the Financial
Institution has received a Notice of Sole Control delivered pursuant to Section 8(a). If the
Debtor is otherwise entitled to issue instructions directing the disposition of funds in the
Deposit Account and such instructions conflict with any instructions issued by the First Lien
Collateral Agent or the Second Lien Collateral Agent (following the receipt by Financial
Institution of a Notice of Termination of First Lien Obligations), the Financial Institution shall
follow the instructions issued by the applicable Collateral Agent.

     Section 4. Subordination of Lien; Waiver of Set-Off. In the event that the Financial
Institution has or subsequently obtains by agreement, by operation of law or otherwise a security
interest in the Deposit Account or any funds credited thereto, the Financial Institution hereby
agrees that such security interest shall be subordinate to the security interests of the Collateral
Agents. Money and other items credited to the Deposit Account will not be subject to deduction,
set-off, banker’s lien, or any other right in favor of any person other than the Collateral Agents
(except that the Financial Institution may set off (i) all amounts due to the Financial Institution
in respect of customary fees and expenses for the routine maintenance and operation of the Deposit
Account and (ii) the face amount of any checks which have been credited to such Deposit Account but
are subsequently returned unpaid because of uncollected or insufficient funds).

     Section 5. Choice of Law. This Agreement and the Deposit Account shall each be governed by
the laws of the State of New York. Regardless of any provision in any other agreement, for
purposes of the UCC, New York shall be deemed to be the Financial Institution’s jurisdiction
(within the meaning of Section 9-304 of the UCC) and the Deposit Account shall be governed by the
laws of the State of New York.

     Section 6. Conflict with Other Agreements.

EXHIBIT D-2

 

     (a) In the event of any conflict between this Agreement (or any portion thereof) and any
other agreement now existing or hereafter entered into, the terms of this Agreement shall prevail;

     (b) No amendment or modification of this Agreement or waiver of any right hereunder shall be
binding on any party hereto unless it is in writing and is signed by all of the parties hereto; and

     (c) The Financial Institution hereby confirms and agrees that:

     (i) There are no other agreements entered into between the Financial
Institution and the Debtor with respect to the Deposit Account;

     (ii) It has not entered into, and until the termination of this Agreement,
will not enter into, any agreement with any other person relating the Deposit
Account and/or any funds credited thereto pursuant to which it has agreed to
comply with instructions originated by such persons as contemplated by Section
9-104 of the UCC; and

     (iii) It has not entered into, and until the termination of this Agreement,
will not enter into, any agreement with the Debtor or either Collateral Agent
purporting to limit or condition the obligation of the Financial Institution to
comply with instructions orders as set forth in Section 3 hereof.

     Section 7. Adverse Claims. Other than the security interests of the Collateral Agents, the
Financial Institution does not know of any security interest in the Deposit Account. If any person
asserts any lien, encumbrance or adverse claim (including any writ, garnishment, judgment, warrant
of attachment, execution or similar process) against the Deposit Account, the Financial Institution
will promptly notify the Collateral Agents and the Debtor thereof.

     Section 8. Maintenance of Deposit Account. In addition to, and not in lieu of, the
obligation of the Financial Institution to honor instructions as set forth in Section 3 hereof, the
Financial Institution agrees to maintain the Deposit Account as follows:

     (a) Notice of Sole Control. If at any time the First Lien Collateral Agent or the
Second Lien Collateral Agent, as the case may be, delivers to the Financial Institution a Notice of
Sole Control in substantially the form set forth in Exhibit B hereto, the Financial Institution
agrees that after receipt of such notice, it will take all instruction with respect to the Deposit
Account solely from the appropriate Collateral Agent, as provided herein;

     (b) Statements and Confirmations. The Financial Institution will promptly send
copies of all statements, confirmations and other correspondence concerning the Deposit Account
simultaneously to each of the Debtor and the Collateral Agents at the address for each set forth in
Section 11 of this Agreement; and

     (c) Tax Reporting. All interest, if any, relating to the Deposit Account, shall be
reported to the Internal Revenue Service and all state and local taxing authorities under the name
and taxpayer identification number of the Debtor.

     Section 9. Representations, Warranties and Covenants of the Financial Institution. The
Financial Institution hereby makes the following representations, warranties and covenants:

EXHIBIT D-3

 

     (a) The Deposit Account has been established as set forth in Section 1 and such Deposit
Account will be maintained in the manner set forth herein until termination of this Agreement; and

     (b) This Agreement is the valid and legally binding obligation of the Financial Institution.

     Section 10. Indemnification of Financial Institution. The Debtor and the Collateral Agents
hereby agree that (a) the Financial Institution is released from any and all liabilities to the
Debtor and the Collateral Agents arising from the terms of this Agreement and the compliance of the
Financial Institution with the terms hereof, except to the extent that such liabilities arise from
the Financial Institution’s negligence and (b) the Debtor, its successors and assigns shall at all
times indemnify and save harmless the Financial Institution from and against any and all claims,
actions and suits of others arising out of the terms of this Agreement or the compliance of the
Financial Institution with the terms hereof, except to the extent that such arises from the
Financial Institution’s negligence, and from and against any and all liabilities, losses, damages,
costs, charges, counsel fees and other expenses of every nature and character arising by reason of
the same, until the termination of this Agreement.

     Section 11. Successors; Assignment. The terms of this Agreement shall be binding upon, and
shall inure to the benefit of, the parties hereto and their respective successors and assigns.
Each Collateral Agent may assign its rights hereunder only with the express written consent of the
Financial Institution and by sending written notice of such assignment to the Debtor.

     Section 12 Notices. Any notice, request or other communication required or permitted to be
given under this Agreement shall be in writing and deemed to have been properly given when
delivered in person, or when sent by telecopy or other electronic means and electronic confirmation
of error free receipt is received or two (2) days after being sent by certified or registered
United States mail, return receipt requested, postage prepaid, addressed to the party at the
address set forth below.

	 	 	 	 	 
	 

	 	Debtor:
	 	[INSERT ADDRESS]
	 

	 	 	 	Attention:
	 

	 	 	 	Telecopier:
	 
	 	 	 	 
	 

	 	First Lien Collateral Agent:
	 	[INSERT ADDRESS]
	 

	 	 	 	Attention:
	 

	 	 	 	Telecopier:
	 
	 	 	 	 
	 

	 	Second Lien Collateral Agent:
	 	[INSERT ADDRESS]
	 

	 	 	 	Attention:
	 

	 	 	 	Telecopier:
	 
	 	 	 	 
	 

	 	Financial Institution:
	 	[INSERT ADDRESS]
	 

	 	 	 	Attention:
	 

	 	 	 	Telecopier:

     Any party may change its address for notices in the manner set forth above.

EXHIBIT D-4

 

     Section 13. Termination. The obligations of the Financial Institution to the Collateral
Agents pursuant to this Agreement shall continue in effect until the security interests of the
Collateral Agents in the Deposit Account have been terminated pursuant to the terms of the Security
Agreements and the applicable Collateral Agent has notified the Financial Institution of such
termination in writing. Each Collateral Agent agrees to provide Notice of Termination in
substantially the form of Exhibit A hereto to the Financial Institution upon the request of the
Debtor on or after the termination of the applicable Collateral Agent’s security interest in the
Deposit Account pursuant to the terms of the applicable Security Agreement. The termination of
this Agreement shall not terminate the Deposit Account or alter the obligations of the Financial
Institution to the Debtor pursuant to any other agreement with respect to the Deposit Account.

     Section 14. Counterparts. This Agreement may be executed in any number of counterparts, all
of which shall constitute one and the same instrument, and any party hereto may execute this
Agreement by signing and delivering one or more counterparts.

[Remainder of this page intentionally left blank]

EXHIBIT D-5

 

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

	 	 	 	 	 	 	 
	 	 	[DEBTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF FIRST LIEN COLLATERAL AGENT]

as First Lien Collateral Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF SECOND LIEN COLLATERAL AGENT]

as Second Lien Collateral Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF FINANCIAL INSTITUTION]

as Financial Institution	 	 
	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

EXHIBIT D-6

 

EXHIBIT A

TO DEPOSIT ACCOUNT CONTROL AGREEMENT

[Letterhead of the First Lien Collateral Agent]

NOTICE OF TERMINATION OF FIRST LIEN OBLIGATIONS

[Name of Financial Institution]

[Address]

[NAME OF SECOND LIEN COLLATERAL AGENT]

[ADDRESS]

			
	Re:	 	Deposit Account Control Agreement dated as of [______], 200__ (as amended, restated,
supplemented or otherwise modified from time to time, the “Control Agreement”) by and among
[NAME OF DEBTOR] (the “Company”), [NAME OF FIRST LIEN COLLATERAL AGENT], as First Lien
Collateral Agent (in such capacity, the “First Lien Collateral Agent”), [NAME OF SECOND LIEN
COLLATERAL AGENT], as Second Lien Collateral Agent (in such capacity, the “Second Lien
Collateral Agent”) and [NAME OF FINANCIAL INSTITUTION] re deposit account number
                     in the name of                      (the “Account”).

Ladies and Gentlemen:

     You are hereby notified that there has been a Discharge of First Lien Obligations. You are
hereby instructed that you may comply with instructions issued by the Second Lien Collateral Agent
directing disposition of funds in the Account without our consent, the consent of the Company or
the consent of any other person.

     Capitalized terms used but not defined herein shall have the meanings set forth in the Control
Agreement.

	 	 	 	 	 	 	 
	 
	 	Sincerely,	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF FIRST LIEN COLLATERAL AGENT]

as First Lien Collateral Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

Cc: [Debtor]

EXHIBIT D-A-1

 

EXHIBIT B

TO DEPOSIT ACCOUNT CONTROL AGREEMENT

[Letterhead of First/Second Lien Collateral Agent]

[Date]

[Name and Address of Financial Institution]

Attention:

               Re: Notice of Sole Control

Ladies and Gentlemen:

     As referenced in the Deposit Account Control Agreement dated as of ___, 200___ among [NAME
OF THE DEBTOR], you and the undersigned (a copy of which is attached), we hereby give you notice of
our sole control over deposit account number                     
(the “Deposit Account”) and all financial
assets credited thereto. You are hereby instructed not to accept any direction, instructions or
entitlement orders with respect to the Deposit Account or the financial assets credited thereto
from any person other than the undersigned, unless otherwise ordered by a court of competent
jurisdiction.

     You are instructed to deliver a copy of this notice by facsimile transmission to [NAME OF THE
DEBTOR].

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF FIRST/SECOND LIEN COLLATERAL AGENT],

as First/Second Lien Collateral Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

cc: [NAME OF THE DEBTOR]

EXHIBIT D-B-1

 

EXHIBIT C

TO DEPOSIT ACCOUNT CONTROL AGREEMENT

[Letterhead of First/Second Lien Collateral Agent]

[Date]

[Name and Address of Financial Institution]

Attention:

          Re: Termination of Deposit Account Control Agreement 

     You are hereby notified that the Deposit Account Control Agreement dated as of ___,
200[_] among [NAME OF THE DEBTOR], you and the undersigned (a copy of which is attached) is
terminated and you have no further obligations to the undersigned pursuant to such Agreement.
Notwithstanding any previous instructions to you, you are hereby instructed to accept all future
directions with respect to account number(s)           from [NAME OF THE DEBTOR].
This notice terminates any obligations you may have to the undersigned with respect to such
account, however nothing contained in this notice shall alter any obligations which you may
otherwise owe to [NAME OF THE DEBTOR] pursuant to any other agreement.

     You are instructed to deliver a copy of this notice by facsimile transmission to [NAME OF THE
DEBTOR].

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF FIRST/SECOND LIEN COLLATERAL AGENT]

as First/Second Lien Collateral Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

EXHIBIT D-C-1EX-10.16

 

Exhibit 10.16

EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT, dated as of July 12, 2005 (the “Employment Agreement”), by and
between Coffeyville Resources, LLC, a Delaware limited liability company (the “Company”),
and Robert W. Haugen (the “Executive”).

     WHEREAS, pursuant to the Stock Purchase Agreement, dated as of May 15, 2005 (the “Stock
Purchase Agreement”), between Coffeyville Group Holdings, LLC, a Delaware limited liability
company (“Seller”) and Coffeyville Acquisition LLC, a Delaware limited liability company
(“Buyer”), Buyer purchased from Seller all of the issued and outstanding shares of capital
stock of Coffeyville Pipeline, Inc., Coffeyville Refining & Marketing, Inc., Coffeyville Nitrogen
Fertilizers, Inc., Coffeyville Crude Transportation, Inc. and Coffeyville Terminal, Inc.; and

     WHEREAS, the Company and the Executive desire to, effective as of the consummation of the
transactions contemplated in the Stock Purchase Agreement, enter into this Employment Agreement.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein and other valid
consideration the sufficiency of which is acknowledged, the parties hereto agree as follows:

     Section 1. Employment.

          1.1. Term. The Company agrees to employ the Executive, and the Executive agrees to be
employed by the Company, in each case pursuant to this Employment Agreement, for a period
commencing on the “Closing Date” (as such term is defined in the Stock Purchase Agreement)
and ending on the earlier of (i) the third (3rd) anniversary of the Closing Date and
(ii) the termination of the Executive’s employment in accordance with Section 3 hereof (the
“Term”).

          1.2. Duties. During the Term, the Executive shall serve as Executive Vice President –
Engineering and Construction of the Company and such other positions as an officer or director of
the Company and such affiliates of the Company as the Executive and the board of directors of the
Company (the “Board”) shall mutually agree from time to time. In such positions, the
Executive shall perform such duties, functions and responsibilities during the Term commensurate
with the Executive’s positions as reasonably directed by the Board.

          1.3. Exclusivity. During the Term, the Executive shall devote substantially all of
his working time and attention to the business and affairs of the Company, shall faithfully serve
the Company, and shall in all material respects conform to and comply with the lawful and
reasonable directions and instructions given to him by the Board, consistent with Section 1.2
hereof. During the Term, the Executive shall use his best efforts during his working time to
promote and serve the interests of the Company and shall not engage in any other business activity,
whether or not such activity shall be engaged in for pecuniary profit. The provisions of this
Section 1.3 shall not be construed to prevent the Executive from investing his personal, private
assets as a passive investor in such form or manner as will not require any active services on the
part of the Executive in the management or operation of the affairs of the

 

 

companies, partnerships, or other business entities in which any such passive investments are
made. Notwithstanding the foregoing, during the Term the Executive shall not engage in any
activity related to the construction or operation of ammonia, urea ammonium nitrate or fertilizer
plants or facilities anywhere outside of the United States.

     Section 2. Compensation.

          2.1. Salary. As compensation for the performance of the Executive’s services
hereunder, during the Term, the Company shall pay to the Executive a salary at an annual rate of
Two Hundred Twenty-Five Thousand Dollars ($225,000), payable in accordance with the Company’s
standard payroll policies, as may be adjusted upward by the Board in its discretion (as adjusted,
the “Base Salary”).

          2.2. Bonus.

               (a) Annual Bonus. For each completed fiscal year occurring during the Term, the
Executive shall be eligible to receive an annual cash bonus (the “Annual Bonus”). The
target Annual Bonus shall be 52% of the Executive’s Base Salary as in effect at the beginning of
such fiscal year, the actual Annual Bonus to be based upon such individual and/or Company
performance criteria established for each such fiscal year by the Board. For 2005, the Executive
will be eligible to receive an Annual Bonus under the 2005 Coffeyville Resources, LLC and
Affiliated Companies Performance Based Income Sharing Plan (the “2005 Plan”) with
appropriate adjustments to the performance criteria thereunder to reflect the impact, if any, of
the transactions contemplated in the Stock Purchase Agreement. Notwithstanding the foregoing, the
Executive shall not be eligible for any pro rata bonus upon termination of the Executive’s
employment under the 2005 Plan (or any successor plan).

               (b) Special Bonus. The Executive shall be eligible to participate in any special
bonus program that the Board may implement to reward senior management for extraordinary
performance on terms and conditions established by the Board.

          2.3. Employee Benefits. During the Term, the Executive shall be eligible to
participate in such health, insurance, retirement, and other employee benefit plans and programs of
the Company as in effect from time to time on the same basis as other senior executives of the
Company.

          2.4. Vacation. During the Term, the Executive shall be entitled to paid vacation in
accordance with the Company’s vacation policy as in effect on the date hereof.

          2.5. Business Expenses. The Company shall pay or reimburse the Executive for all
commercially reasonable business out-of-pocket expenses that the Executive incurs during the Term
in performing his duties under this Employment Agreement upon presentation of documentation and in
accordance with the expense reimbursement policy of the Company as approved by the Board and in
effect from time to time.

     Section 3. Employment Termination.

2

 

          3.1. Termination of Employment. The Company may terminate the Executive’s employment
for any reason during the Term, and the Executive may voluntarily terminate his employment for any
reason during the Term, in each case (other than a termination by the Company for Cause) at any
time upon not less than thirty (30) days’ notice to the other party. Upon the termination of the
Executive’s employment with the Company for any reason (whether during the Term or thereafter), the
Executive shall be entitled to any Base Salary earned but unpaid through the date of termination,
any earned but unpaid Annual Bonus for completed fiscal years, and any unreimbursed expenses in
accordance with Section 2.5 hereof (collectively, the “Accrued Amounts”).

          3.2. Certain Terminations.

               (a) Termination by the Company Other Than For Cause or Disability; Termination by the
Executive for Good Reason. If (i) the Executive’s employment is terminated by the Company
during the Term other than for Cause or Disability or (ii) the Executive resigns for Good Reason,
in addition to the Accrued Amounts the Executive shall be entitled to the following payments and
benefits: (x) the continuation of his Base Salary at the rate in effect immediately prior to the
date of termination for a period of twelve (12) months and (y) the continuation on the same terms
as an active employee of medical benefits the Executive would otherwise be eligible to receive as
an active employee of the Company for twelve (12) months or until such time as the Executive
becomes eligible for medical benefits from a subsequent employer (such payments, the “Severance
Payments”). The Company’s obligations to make the Severance Payments shall be conditioned
upon: (i) the Executive’s continued compliance with his obligations under Section 4 of this
Employment Agreement and (ii) the Executive’s execution, delivery and non-revocation of a valid and
enforceable release of claims arising in connection with the Executive’s employment and termination
of employment with the Company and its affiliates (the “Release”) in a form reasonably
acceptable to the Company and the Executive. In the event that the Executive breaches any of the
covenants set forth in Section 4 of this Employment Agreement, the Executive will immediately
return to the Company any portion of the Severance Payments that have been paid to the Executive
pursuant to this Section 3.2(a). Subject to Section 3.2(c), the Severance Payments will commence
to be paid to the Executive as soon as practicable following the effectiveness of the Release.

               (b) Definitions. For purposes of this Section 3.2, the following terms shall have the
following meanings:

                    (1) A termination for “Good Reason” shall mean a termination by the Executive within
thirty (30) days following the date on which the Company has engaged in any of the following: (i)
the assignment of duties or responsibilities to the Executive that reflect a material diminution of
the Executive’s position with the Company; (ii) a relocation of the Executive’s principal place of
employment that increases the Executive’s commute by more than fifty (50) miles; or (iii) a
reduction in the Executive’s Base Salary, other than across-the-board reductions applicable to
similarly situated employees of the Company; provided, however, that the Executive
must provide the Company with notice promptly following the occurrence of any of foregoing and at
least ten (10) business days to cure.

                    (2) “Cause” shall mean that the Executive has engaged

3

 

in any of the following: (i) willful misconduct or breach of fiduciary duty; (ii) intentional
failure or refusal to perform reasonably assigned duties after written notice of such willful
failure or refusal and the failure or refusal is not corrected within ten (10) business days; (iii)
the indictment for, conviction of or entering a plea of guilty or nolo contendere to a crime
constituting a felony (other than a traffic violation or other offense or violation outside of the
course of employment which does not adversely affect the Company and its affiliates or their
reputation or the ability of the Executive to perform his employment-related duties or to represent
the Company); provided, however, that (A) if the Executive is terminated for Cause
by reason of his indictment pursuant to this clause (iii) and the indictment is subsequently
dismissed or withdrawn or the Executive is found to be not guilty in a court of law in connection
with such indictment, then the Executive’s termination shall be treated for purposes of this
Employment Agreement as a termination by the Company other than for Cause, and the Executive will
be entitled to receive (without duplication of benefits and to the extent permitted by law and the
terms of the then-applicable medical benefit plans) the payments and benefits set forth in Section
3.2(a) following such dismissal, withdrawal or finding, payable in the manner and subject to the
conditions set forth in such Section and (B) if such indictment relates to environmental matters
and does not allege that the Executive was directly involved in or directly supervised the
action(s) forming the basis of the indictment, Cause shall not be deemed to exist under this
Employment Agreement by reason of such indictment until the Executive is convicted or enters a plea
of guilty or nolo contendere in connection with such indictment; or (iv) material breach of the
Executive’s covenants in Section 4 of this Employment Agreement or any material written policy of
the Company after written notice of such breach and failure by the Executive to correct such breach
within ten (10) business days, provided that no notice of, nor opportunity to correct, such
breach shall be required hereunder if such breach cannot be cured by the Executive.

                    (3) “Disability” shall mean the Executive’s inability, due to physical or mental ill
health, to perform the essential functions of the Executive’s job, with or without a reasonable
accommodation, for 180 days during any 365 day period irrespective of whether such days are
consecutive.

               (c) Section 409A. Any payments under Section 2.2 of this Employment Agreement shall
be made no later than two and one-half months after the later of the end of the Company’s fiscal
year in which all conditions entitling the Executive to such payments have been satisfied or the
calendar year in which all conditions entitling the Executive to such payments have been satisfied.
If the Executive is a “specified employee” for purposes of Section 409A of the Code and the
regulations thereunder, any Severance Payments required to be made pursuant to Section 3.2(a) which
are subject to Section 409A shall not commence until six (6) months from the date of termination,
with the first payment equaling six (6) months of his Base Salary at the rate in effect immediately
prior to the date of termination.

          3.3. Exclusive Remedy. The foregoing payments upon termination of the Executive’s
employment shall constitute the exclusive severance payments due the Executive upon a termination
of his employment under this Employment Agreement.

          3.4. Resignation from All Positions. Upon the termination of the Executive’s
employment with the Company for any reason, the Executive shall be deemed to have resigned, as of
the date of such termination, from all positions he then holds as an officer,

4

 

director, employee and member of the board (and any committee thereof) of the Company and any
of its direct or indirect subsidiaries (collectively, the “Subsidiaries”).

          3.5. Cooperation. For one (1) year following the termination of the Executive’s
employment with the Company for any reason, the Executive agrees to reasonably cooperate with the
Company upon reasonable request of the Board and to be reasonably available to the Company with
respect to matters arising out of the Executive’s services to the Company and its Subsidiaries.
The Company shall reimburse the Executive for expenses reasonably incurred in connection with such
matters as agreed by the Executive and the Board and the Company shall compensate the Executive for
such cooperation at an hourly rate based on the Executive’s most recent base salary rate assuming
two thousand (2,000) working hours per year; provided, that if the Executive is required to
spend more than forty (40) hours in any month on Company matters pursuant to this Section 3.5, the
Executive and the Board shall mutually agree to an appropriate rate of compensation for the
Executive’s time over such forty (40) hour threshold.

     Section 4. Unauthorized Disclosure; Non-Solicitation; Non-Competition;
Proprietary Rights.

          4.1. Unauthorized Disclosure. The Executive agrees and understands that in the
Executive’s position with the Company, the Executive has been and will be exposed to and has and
will receive information relating to the confidential affairs of the Company and its affiliates,
including, without limitation, technical information, intellectual property, business and marketing
plans, strategies, customer information, software, other information concerning the products,
promotions, development, financing, expansion plans, business policies and practices of the Company
and its affiliates and other forms of information considered by the Company and its affiliates to
be confidential and in the nature of trade secrets (including, without limitation, ideas, research
and development, know-how, formulas, technical data, designs, drawings, specifications, customer
and supplier lists, pricing and cost information and business and marketing plans and proposals)
(collectively, the “Confidential Information”); provided, however, that
Confidential Information shall not include information which (i) is or becomes generally available
to the public not in violation of this Employment Agreement or any written policy of the Company;
or (ii) was in the Executive’s possession or knowledge on a non-confidential basis prior to such
disclosure. The Executive agrees that at all times during the Executive’s employment with the
Company and thereafter, the Executive shall not disclose such Confidential Information, either
directly or indirectly, to any individual, corporation, partnership, limited liability company,
association, trust or other entity or organization, including a government or political subdivision
or an agency or instrumentality thereof (each a “Person”) without the prior written consent
of the Company and shall not use or attempt to use any such information in any manner other than in
connection with his employment with the Company, unless required by law to disclose such
information, in which case the Executive shall provide the Company with written notice of such
requirement as far in advance of such anticipated disclosure as possible. This confidentiality
covenant has no temporal, geographical or territorial restriction. Upon termination of the
Executive’s employment with the Company, the Executive shall promptly supply to the Company all
property, keys, notes, memoranda, writings, lists, files, reports, customer lists, correspondence,
tapes, disks, cards, surveys, maps, logs, machines, technical data and any other tangible product
or document which has been produced by, received

5

 

by or otherwise submitted to the Executive during or prior to the Executive’s employment with
the Company, and any copies thereof in his (or capable of being reduced to his) possession.

          4.2. Non-Competition. By and in consideration of the Company’s entering into this
Employment Agreement and the payments to be made and benefits to be provided by the Company
hereunder, and in further consideration of the Executive’s exposure to the Confidential Information
of the Company and its affiliates, the Executive agrees that the Executive shall not, during the
Executive’s employment with the Company (whether during the Term or thereafter) and for a period of
twelve (12) months thereafter (the “Restriction Period”), directly or indirectly, own,
manage, operate, join, control, be employed by, or participate in the ownership, management,
operation or control of, or be connected in any manner with, including, without limitation, holding
any position as a stockholder, director, officer, consultant, independent contractor, employee,
partner, or investor in, any Restricted Enterprise (as defined below); provided, that in no
event shall ownership of one percent (1%) or less of the outstanding securities of any class of any
issuer whose securities are registered under the Securities Exchange Act of 1934, as amended,
standing alone, be prohibited by this Section 4.2, so long as the Executive does not have, or
exercise, any rights to manage or operate the business of such issuer other than rights as a
stockholder thereof. For purposes of this paragraph, “Restricted Enterprise” shall mean
any Person that is actively engaged in any business which is either (i) in competition with the
business of the Company or any of its Subsidiaries conducted during the preceding twelve (12)
months (or following the Executive’s termination of employment, the twelve (12) months preceding
the date of termination of the Executive’s employment with the Company) or (ii) proposed to be
conducted by the Company or any of its Subsidiaries in the Company’s business plan as in effect at
that time (or following the Executive’s termination of employment, the business plan as in effect
as of the date of termination of the Executive’s employment with the Company); provided,
that (x) with respect to any Person that is actively engaged in the refinery business, a Restricted
Enterprise shall only include such a Person that operates or markets in any geographic area in
which the Company or any of its Subsidiaries operates or markets with respect to its refinery
business and (y) with respect to any Person that is actively engaged in the fertilizer business, a
Restricted Enterprise shall only include such a Person that operates or markets in any geographic
area in which the Company or any of its Subsidiaries operates or markets with respect to its
fertilizer business. During the Restriction Period, upon request of the Company, the Executive
shall notify the Company of the Executive’s then-current employment status. For the avoidance of
doubt, a Restricted Enterprise shall not include any Person or division thereof that is engaged in
the business of supplying (but not refining) crude oil or natural gas.

          4.3. Non-Solicitation of Employees. During the Restriction Period, the Executive
shall not directly or indirectly contact, induce or solicit (or assist any Person to contact,
induce or solicit) for employment any person who is, or within twelve (12) months prior to the date
of such solicitation was, an employee of the Company or any of its Subsidiaries.

          4.4. Non-Solicitation of Customers/Suppliers. During the Restriction Period, the
Executive shall not (i) contact, induce or solicit (or assist any Person to contact, induce or
solicit) any Person which has a business relationship with the Company or of any of its
Subsidiaries in order to terminate, curtail or otherwise interfere with such business relationship
or (ii) solicit, other than on behalf of the Company and its Subsidiaries, any Person that the

6

 

Executive knows or should have known (x) is a current customer of the Company or any of its
Subsidiaries in any geographic area in which the Company or any of its Subsidiaries operates or
markets or (y) is a Person in any geographic area in which the Company or any of its Subsidiaries
operates or markets with respect to which the Company or any of its Subsidiaries has, within the
twelve (12) months prior to the date of such solicitation, devoted more than de minimis resources
in an effort to cause such Person to become a customer of the Company or any of its Subsidiaries in
that geographic area. For the avoidance of doubt, the foregoing does not preclude the Executive
from soliciting, outside of the geographic areas in which the Company or any of its Subsidiaries
operates or markets, any Person that is a customer or potential customer of the Company or any of
its Subsidiaries in the geographic areas in which it operates or markets.

          4.5. Extension of Restriction Period. The Restriction Period shall be tolled for any
period during which the Executive is in breach of any of Sections 4.2, 4.3 or 4.4 hereof.

          4.6. Proprietary Rights. The Executive shall disclose promptly to the Company any and
all inventions, discoveries, and improvements (whether or not patentable or registrable under
copyright or similar statutes), and all patentable or copyrightable works, initiated, conceived,
discovered, reduced to practice, or made by him, either alone or in conjunction with others, during
the Executive’s employment with the Company and related to the business or activities of the
Company and its affiliates (the “Developments”). Except to the extent any rights in any
Developments constitute a work made for hire under the U.S. Copyright Act, 17 U.S.C. § 101 et seq.
that are owned ab initio by the Company and/or its applicable affiliate, the Executive assigns all
of his right, title and interest in all Developments (including all intellectual property rights
therein) to the Company or its nominee without further compensation, including all rights or
benefits therefor, including without limitation the right to sue and recover for past and future
infringement. The Executive acknowledges that any rights in any developments constituting a work
made for hire under the U.S. Copyright Act, 17 U.S.C § 101 et seq. are owned upon creation by the
Company and/or its applicable affiliate as the Executive’s employer. Whenever requested to do so
by the Company, the Executive shall execute any and all applications, assignments or other
instruments which the Company shall deem necessary to apply for and obtain trademarks, patents or
copyrights of the United States or any foreign country or otherwise protect the interests of the
Company and its affiliates therein. These obligations shall continue beyond the end of the
Executive’s employment with the Company with respect to inventions, discoveries, improvements or
copyrightable works initiated, conceived or made by the Executive while employed by the Company,
and shall be binding upon the Executive’s employers, assigns, executors, administrators and other
legal representatives. In connection with his execution of this Employment Agreement, the
Executive has informed the Company in writing of any interest in any inventions or intellectual
property rights that he holds as of the date hereof. If the Company is unable for any reason,
after reasonable effort, to obtain the Executive’s signature on any document needed in connection
with the actions described in this Section 4.6, the Executive hereby irrevocably designates and
appoints the Company and its duly authorized officers and agents as the Executive’s agent and
attorney in fact to act for and in the Executive’s behalf to execute, verify and file any such
documents and to do all other lawfully permitted acts to further the purposes of this section with
the same legal force and effect as if executed by the Executive.

7

 

          4.7. Confidentiality of Agreement. Other than with respect to information required to
be disclosed by applicable law, the parties hereto agree not to disclose the terms of this
Employment Agreement to any Person; provided the Executive may disclose this Employment Agreement
and/or any of its terms to the Executive’s immediate family, financial advisors and attorneys.
Notwithstanding anything in this Section 4.7 to the contrary, the parties hereto (and each of their
respective employees, representatives, or other agents) may disclose to any and all Persons,
without limitation of any kind, the tax treatment and tax structure of the transactions
contemplated by this Employment Agreement, and all materials of any kind (including opinions or
other tax analyses) related to such tax treatment and tax structure; provided that this sentence
shall not permit any Person to disclose the name of, or other information that would identify, any
party to such transactions or to disclose confidential commercial information regarding such
transactions.

          4.8. Remedies. The Executive agrees that any breach of the terms of this Section 4
would result in irreparable injury and damage to the Company for which the Company would have no
adequate remedy at law; the Executive therefore also agrees that in the event of said breach or any
threat of breach, the Company shall be entitled to an immediate injunction and restraining order to
prevent such breach and/or threatened breach and/or continued breach by the Executive and/or any
and all Persons acting for and/or with the Executive, without having to prove damages, in addition
to any other remedies to which the Company may be entitled at law or in equity, including, without
limitation, the obligation of the Executive to return any Severance Payments made by the Company to
the Company. The terms of this paragraph shall not prevent the Company from pursuing any other
available remedies for any breach or threatened breach hereof, including, without limitation, the
recovery of damages from the Executive. The Executive and the Company further agree that the
provisions of the covenants contained in this Section 4 are reasonable and necessary to protect the
businesses of the Company and its affiliates because of the Executive’s access to Confidential
Information and his material participation in the operation of such businesses.

     Section 5. Representation.

          The Executive represents and warrants that (i) he is not subject to any contract, arrangement,
policy or understanding, or to any statute, governmental rule or regulation, that in any way limits
his ability to enter into and fully perform his obligations under this Employment Agreement and
(ii) he is not otherwise unable to enter into and fully perform his obligations under this
Employment Agreement.

     Section 6. Withholding.

          All amounts paid to the Executive under this Employment Agreement during or following the Term
shall be subject to withholding and other employment taxes imposed by applicable law.

     Section 7. Effect of Section 280G of the Internal Revenue Code.

          7.1. Payment Reduction. Notwithstanding anything contained in this Employment
Agreement to the contrary, to the extent that any payment or distribution of

8

 

any type to or for the Executive by the Company, any affiliate of the Company, any Person who
acquires ownership or effective control of the Company or ownership of a substantial portion of the
Company’s assets (within the meaning of Section 280G of the Internal Revenue Code of 1986, as
amended (the “Code”) and the regulations thereunder), or any affiliate of such Person,
whether paid or payable or distributed or distributable pursuant to the terms of this Employment
Agreement or otherwise (the “Payments”) is or will be subject to the excise tax imposed
under Section 4999 of the Code (the “Excise Tax”), then the Payments shall be reduced (but
not below zero) if and to the extent necessary so that no Payments to be made or benefit to be
provided to the Executive shall be subject to the Excise Tax; provided, however,
that the Company shall use its reasonable best efforts to obtain shareholder approval of the
Payments provided for in this Employment Agreement in a manner intended to satisfy requirements of
the “shareholder approval” exception to Section 280G of the Code and the regulations promulgated
thereunder, such that payment may be made to the Executive of such Payments without the application
of an Excise Tax. Unless the Executive shall have given prior written notice to the Company
specifying a different order by which to effectuate the reduction, the Company shall reduce or
eliminate the Payments (x) by first reducing or eliminating the portion of the Payments which are
not payable in cash (other than that portion of the Payments subject to clause (z) hereof), (y)
then by reducing or eliminating cash payments (other than that portion of the Payments subject to
clause (z) hereof) and (z) then by reducing or eliminating the portion of the Payments (whether
payable in cash or not payable in cash) to which Treasury Regulation § 1.280G-1 Q/A 24(c) (or
successor thereto) applies, in each case in reverse order beginning with payments or benefits which
are to be paid the farthest in time. Any notice given by the Executive pursuant to the preceding
sentence shall take precedence over the provisions of any other plan, arrangement or agreement
governing the Executive’s rights and entitlements to any benefits or compensation.

          7.2. Determination of Amount of Reduction. The determination of whether the Payments
shall be reduced as provided in Section 7.1 and the amount of such reduction shall be made at the
Company’s expense by an accounting firm selected by the Company from among the four (4) largest
accounting firms in the United States (the “Accounting Firm”). The Accounting Firm shall
provide its determination (the “Determination”), together with detailed supporting
calculations and documentation, to the Company and the Executive within ten (10) days after the
Executive’s final day of employment. If the Accounting Firm determines that no Excise Tax is
payable by the Executive with respect to the Payments, it shall furnish the Executive with an
opinion reasonably acceptable to the Executive that no Excise Tax will be imposed with respect to
any such payments and, absent manifest error, such Determination shall be binding, final and
conclusive upon the Company and the Executive.

     Section 8. Miscellaneous.

          8.1. Amendments and Waivers. This Employment Agreement and any of the provisions
hereof may be amended, waived (either generally or in a particular instance and either
retroactively or prospectively), modified or supplemented, in whole or in part, only by written
agreement signed by the parties hereto; provided, that, the observance of any provision of
this Employment Agreement may be waived in writing by the party that will lose the benefit of such
provision as a result of such waiver. The waiver by any party hereto of a breach of any provision
of this Employment Agreement shall not operate or be construed as a further or

9

 

continuing waiver of such breach or as a waiver of any other or subsequent breach, except as
otherwise explicitly provided for in such waiver. Except as otherwise expressly provided herein,
no failure on the part of any party to exercise, and no delay in exercising, any right, power or
remedy hereunder, or otherwise available in respect hereof at law or in equity, shall operate as a
waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such
party preclude any other or further exercise thereof or the exercise of any other right, power or
remedy.

          8.2. Indemnification. To the extent provided in the Amended and Restated Limited
Liability Company Agreement of Coffeyville Acquisition LLC, dated as of June 24, 2005, as in effect
from time to time, the Company shall indemnify the Executive for losses or damages incurred by the
Executive as a result of causes of action arising from the Executive’s performance of duties for
the benefit of the Company, whether or not the claim is asserted during the Term.

          8.3. Assignment. This Employment Agreement, and the Executive’s rights and
obligations hereunder, may not be assigned by the Executive, and any purported assignment by the
Executive in violation hereof shall be null and void.

          8.4. Notices. Unless otherwise provided herein, all notices, requests, demands,
claims and other communications provided for under the terms of this Employment Agreement shall be
in writing. Any notice, request, demand, claim or other communication hereunder shall be sent by
(i) personal delivery (including receipted courier service) or overnight delivery service, (ii)
facsimile during normal business hours, with confirmation of receipt, to the number indicated,
(iii) reputable commercial overnight delivery service courier or (iv) registered or certified mail,
return receipt requested, postage prepaid and addressed to the intended recipient as set forth
below:

	 	 	 	 	 	 	 
	 

	 	If to the Company:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Coffeyville Resources, LLC
	 	 
	 

	 	 	 	10 E. Cambridge Circle, Suite 250	 	 
	 

	 	 	 	Kansas City, KS 66103	 	 
	 

	 	 	 	Attention: General Counsel	 	 
	 

	 	 	 	Facsimile: (913) 981-0000	 	 
	 
	 	 	 	 	 	 
	 

	 	with a copy to:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Fried, Frank, Harris, Shriver & Jacobson LLP	 	 
	 

	 	 	 	One New York Plaza	 	 
	 

	 	 	 	New York, NY 10004	 	 
	 

	 	 	 	Attention: Donald P. Carleen, Esq.	 	 
	 

	 	 	 	Facsimile: (212) 859-4000	 	 

10

 

	 	 	 	 	 	 	 
	 

	 	If to the Executive:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Robert W. Haugen
	 	 
	 

	 	 	 	5610 Lone Cedar Drive	 	 
	 

	 	 	 	Kingwood, TX 77478	 	 

     All such notices, requests, consents and other communications shall be deemed to have been
given when received. Any party may change its facsimile number or its address to which notices,
requests, demands, claims and other communications hereunder are to be delivered by giving the
other parties hereto notice in the manner then set forth.

          8.5. Governing Law. This Employment Agreement shall be construed and enforced in
accordance with, and the rights and obligations of the parties hereto shall be governed by, the
laws of the State of Kansas, without giving effect to the conflicts of law principles thereof.
Each of the parties hereto irrevocably and unconditionally consents to submit to the exclusive
jurisdiction of the courts of Kansas (collectively, the “Selected Courts”) for any action
or proceeding relating to this Employment Agreement, agrees not to commence any action or
proceeding relating thereto except in the Selected Courts, and waives any forum or venue objections
to the Selected Courts.

          8.6. Severability. Whenever possible, each provision or portion of any provision of
this Employment Agreement, including those contained in Section 4 hereof, will be interpreted in
such manner as to be effective and valid under applicable law but the invalidity or
unenforceability of any provision or portion of any provision of this Employment Agreement in any
jurisdiction shall not affect the validity or enforceability of the remainder of this Employment
Agreement in that jurisdiction or the validity or enforceability of this Employment Agreement,
including that provision or portion of any provision, in any other jurisdiction. In addition,
should a court or arbitrator determine that any provision or portion of any provision of this
Employment Agreement, including those contained in Section 4 hereof, is not reasonable or valid,
either in period of time, geographical area, or otherwise, the parties hereto agree that such
provision should be interpreted and enforced to the maximum extent which such court or arbitrator
deems reasonable or valid.

          8.7. Entire Agreement. From and after the Closing Date, this Employment Agreement
constitutes the entire agreement between the parties hereto, and supersedes all prior
representations, agreements and understandings (including any prior course of dealings), both
written and oral, between the parties hereto with respect to the subject matter hereof.

          8.8. Counterparts. This Employment Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all such counterparts shall together
constitute one and the same instrument.

          8.9. Binding Effect. This Employment Agreement shall inure to the benefit of, and be
binding on, the successors and assigns of each of the parties, including,

11

 

without limitation, the Executive’s heirs and the personal representatives of the Executive’s
estate and any successor to all or substantially all of the business and/or assets of the Company.

          8.10. General Interpretive Principles. The name assigned this Employment Agreement
and headings of the sections, paragraphs, subparagraphs, clauses and subclauses of this Employment
Agreement are for convenience of reference only and shall not in any way affect the meaning or
interpretation of any of the provisions hereof. Words of inclusion shall not be construed as terms
of limitation herein, so that references to “include”, “includes” and “including” shall not be
limiting and shall be regarded as references to non-exclusive and non-characterizing illustrations.

          8.11. Mitigation. Notwithstanding any other provision of this Employment Agreement,
(a) the Executive will have no obligation to mitigate damages for any breach or termination of this
Employment Agreement by the Company, whether by seeking employment or otherwise and (b) except for
medical benefits provided pursuant to Section 3.2(a), the amount of any payment or benefit due the
Executive after the date of such breach or termination will not be reduced or offset by any payment
or benefit that the Executive may receive from any other source.

[signature page follows]

12

 

     IN WITNESS WHEREOF, the parties have executed this Employment Agreement as of the date
first written above.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	COFFEYVILLE RESOURCES, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	/s/
Robert W. Haugen

	 	 	 	By:	 	/s/ John J. Lipinski	 	 
	 

Robert W. Haugen

	 	 	 	 	 	 

Name: John J. Lipinski
	 	 
	 

	 	 	 	 	 	Title: CEO

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