Document:

exv10w16

Exhibit 10.16

THIRD AMENDED AND RESTATED 

EMPLOYMENT AGREEMENT

     THIRD AMENDED AND RESTATED EMPLOYMENT AGREEMENT, dated as of January 1, 2011 (the
“Employment Agreement”), by and between CVR ENERGY, INC., a Delaware corporation (the
“Company”), and JOHN J. LIPINSKI (the “Executive”).

     WHEREAS, the Company and the Executive entered into an amended and restated employment
agreement dated January 1, 2008 (the “First Amended and Restated Agreement”) and an amended
and restated employment agreement dated January 1, 2010 (the “Second Amended and Restated
Agreement”);

     WHEREAS, the Company and the Executive desire to further amend and restate the Second Amended
and Restated Agreement in its entirety as provided for herein;

     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 January 1, 2011 (the “Commencement Date”) and ending on the earlier of (i)
the third (3rd) anniversary of the Commencement Date and (ii) the termination or resignation of the
Executive’s employment in accordance with Section 3 hereof (the “Term”), provided,
however, that at the end of each calendar month after the Commencement Date, the term of
this Employment Agreement shall be automatically extended for one month.

               1.2. Duties. During the Term, the Executive shall serve as President and Chief
Executive Officer of the Company and such other or additional positions as an officer or director
of the Company, and of such direct or indirect affiliates of the Company (“Affiliates”), 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. The Executive shall be employed in the State of Texas during the Term.

               1.3. Exclusivity. During the Term, the Executive shall devote substantially all of
Executive’s working time to the business and affairs of the Company and its Affiliates, shall
faithfully serve the Company and its Affiliates, and shall in all material respects conform to and
comply with the lawful and reasonable directions and instructions given to Executive by the Board,
consistent with Section 1.2 hereof. During the Term, the Executive shall use Executive’s best
efforts during Executive’s working time to promote and serve the interests of the Company and its
Affiliates 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 Executive from (i) investing Executive’s personal,

 

 

private assets as a passive investor in such form or manner as will not require any active
services on the part of 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; or (ii)
serving on the board of directors for Thumbs Up Enterprises Limited and its affiliated companies.

     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
$900,000 which annual salary shall be prorated for any partial year at the beginning or end of the
Term and shall accrue and be payable in accordance with the Company’s standard payroll policies, as
such salary may be adjusted upward by the Compensation Committee of the Board in its discretion (as
adjusted, the “Base Salary”).

               2.2. 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”).
Commencing with fiscal year 2011, the target Annual Bonus shall be 250% of the Executive’s Base
Salary as in effect at the beginning of the Term in fiscal year 2011 and at the beginning of each
such fiscal year thereafter during the Term, the actual Annual Bonus to be based upon such
individual and/or Company performance criteria established for each such fiscal year by the
Compensation Committee of the Board. The Annual Bonus, if any, payable to Executive for a fiscal
year will be paid by the Company to the Executive on the last scheduled payroll payment date during
such fiscal year; provided, however, that if the Annual Bonus is payable pursuant
to a plan that is intended to provide for the payment of bonuses that constitute “performance-based
compensation” within the meaning of Section 162(m) of the Internal Revenue Code of 1986, as amended
(the “Code”), the Annual Bonus shall be paid at such time as is provided in the applicable
plan.

               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. Paid Time Off. During the Term, the Executive shall be entitled to twenty-five
(25) days of paid time off (“PTO”) each year.

               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 Executive’s 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. Notwithstanding anything herein to the contrary or otherwise, except
to the extent any expense or reimbursement described in this Employment Agreement does not
constitute a “deferral of compensation” within the meaning of Section 409A of the Code and the
Treasury regulations and other guidance issued thereunder, any expense or reimbursement described
in this Employment Agreement shall meet the following requirements: (i) the amount of expenses
eligible for reimbursement provided to

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the Executive during any calendar year will not affect the amount of expenses eligible for
reimbursement to the Executive in any other calendar year; (ii) the reimbursements for expenses for
which the Executive is entitled to be reimbursed shall be made on or before the last day of the
calendar year following the calendar year in which the applicable expense is incurred; (iii) the
right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged
for any other benefit; and (iv) the reimbursements shall be made pursuant to objectively
determinable and nondiscretionary Company policies and procedures regarding such reimbursement of
expenses.

     Section 3. Employment Termination.

               3.1. Termination of Employment. The Company may terminate the Executive’s employment
for any reason during the Term, and the Executive may voluntarily resign Executive’s 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 or
resignation 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 or resignation, any earned but unpaid Annual Bonus for completed fiscal years,
any unused accrued PTO 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; Resignation by the
Executive for Good Reason. If during the Term (i) the Executive’s employment is terminated by
the Company other than for Cause or Disability, or (ii) the Executive resigns for Good Reason, then
in addition to the Accrued Amounts the Executive shall be entitled to the following payments and
benefits: (x) the continuation of Executive’s Base Salary at the rate in effect immediately prior
to the date of termination or resignation (or, in the case of a resignation for Good Reason, at the
rate in effect immediately prior to the occurrence of the event constituting Good Reason, if
greater) for a period of thirty-six (36) months (or, if earlier, until and including the month in
which the Executive attains age 70) (the “Severance Period”), (y) a Pro-Rata Bonus and (z)
to the extent permitted pursuant to the applicable plans, the continuation on the same terms as an
active employee (including, where applicable, coverage for the Executive and his dependents) of
medical, dental, vision and life insurance benefits (“Welfare Benefits”) the Executive
would otherwise be eligible to receive as an active employee of the Company for thirty-six (36)
months or, if earlier, until the Executive becomes eligible for Welfare Benefits from a subsequent
employer (the “Welfare Benefit Continuation Period”)(such payments, the “Severance
Payments”). If the Executive is not permitted to continue participation in the Company’s
Welfare Benefit plans pursuant to the terms of such plans or pursuant to a determination by the
Company’s insurance providers or such continued participation in any plan would result in the
imposition of an excise tax on the Company pursuant to Section 4980D of the Code, the Company shall
use reasonable efforts to obtain individual insurance policies providing the Welfare Benefits to
the Executive during the Welfare Benefit Continuation Period, but shall only be required to pay for
such policies an amount equal to the amount the Company would have paid had the Executive continued
participation in the Company’s Welfare Benefits plans;

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provided, that, if such coverage cannot be obtained, the Company shall pay to
the Executive monthly during the Welfare Benefit Continuation Period an amount equal to the amount
the Company would have paid had the Executive continued participation in the Company’s Welfare
Benefits plans. The Company’s obligations to make the Severance Payments shall be conditioned
upon: (i) the Executive’s continued compliance with Executive’s obligations under Section 4 of this
Employment Agreement and (ii) the Executive’s execution, delivery and non-revocation of a valid and
enforceable general release of claims arising in connection with the Executive’s employment and
termination or resignation of employment with the Company (the “Release”) in a form
reasonably acceptable to the Company and the Executive that becomes effective not later than
forty-five (45) days after the date of such termination or resignation of employment. 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 the
foregoing and Section 3.2(g), the Severance Payments will commence to be paid to the Executive on
the forty-fifth (45th) day following the Executive’s termination of employment, except
that the Pro Rata Bonus shall be paid at the time when annual bonuses are paid generally to the
Company’s senior executives for the year in which the Executive’s termination of employment occurs.

                    (b) Change in Control Termination. If (A) (i) the Executive’s employment is
terminated by the Company other than for Cause or Disability, or (ii) the Executive resigns for
Good Reason, and such termination or resignation described in (i) or (ii) of this Clause (A) occurs
within the one (1) year period following a Change in Control, or (B) the Executive’s termination or
resignation is a Change in Control Related Termination, then, in addition to the Severance Payments
described in Section 3.2(a), the Executive shall also be entitled to a payment each month during
the Severance Period equal to one-twelfth (1/12th) of the target Annual Bonus for the
year in which the Executive’s termination or resignation occurs (determined without regard to any
reduction in Base Salary or target Annual Bonus percentage subsequent to the Change in Control or
in connection with the Change in Control Related Termination) and such amounts shall be deemed to
be included in the term Severance Payments for purposes of this Agreement.

                    (c) Termination by the Company For Disability. If the Executive’s employment is
terminated during the Term by the Company by reason of the Executive’s Disability, in addition to
the Accrued Amounts and any payments to be made to the Executive under the Company’s disability
plan(s) as a result of such Disability, the Company shall pay to the Executive such supplemental
amounts (the “Supplemental Disability Payments”) as shall be necessary to result in the
payment of aggregate amounts to the Executive as a result of his Disability that shall be equal to
the Executive’s Base Salary as in effect immediately before such Disability; provided,
that, at the Company’s option, the Company may purchase insurance to cover its obligations
under this Section 3.2(c) and the Executive shall cooperate to assist the Company in obtaining such
insurance. Such Supplemental Disability Payments shall be made for a period of thirty-six (36)
months from the Date of Disability. The Company shall also pay to the Executive a Pro-Rata Bonus
in the event of a termination of employment described in this Section 3.2(c). The Company’s
obligations to make the Supplemental Disability Payments and the Pro-Rata Bonus 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,

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delivery and non-revocation of a Release that becomes effective not later than forty-five (45)
days after the date of such termination of employment. 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 Supplemental Disability Payments and the
Pro-Rata Bonus that have been paid to the Executive pursuant to this Section 3.2(c). Subject to
the foregoing and Section 3.2(g), the Supplemental Disability Payments will commence to be paid to
the Executive on the forty-fifth (45th) day following the Executive’s termination of
employment. The Pro-Rata Bonus shall be paid at the time when annual bonuses are paid generally to
the Company’s senior executives for the year in which the Executive’s termination of employment
occurs.

                    (d) Termination by Reason of Death. If the Executive’s employment is terminated
during the Term by reason of his death, in addition to the Accrued Amounts and any employee
benefits to which the Executive’s estate, spouse or other beneficiaries, as applicable, may be
entitled, the Company shall pay to the beneficiary designated in writing by the Executive (or to
his estate if no such beneficiary has been so designated), (i) the Base Salary which the Executive
would have received if he had remained employed under this Employment Agreement for a total of
thirty-six months from the commencement of the Term, assuming for such remaining period the
Executive’s Base Salary as in effect on the date of the Executive’s death; provided,
that, at the Company’s option, the Company may purchase insurance to cover its obligations
under this Section 3.2(d) (which for the avoidance of doubt shall not include insurance provided by
the Company under its group life insurance plan covering employees generally) and the Executive
shall cooperate to assist the Company in obtaining such insurance and (ii) a Pro-Rata Bonus.

                    (e) Retirement. Upon Retirement, the Executive, whether or not Sections 3.2(a) or
3.2(c) also apply but without duplication of benefits, shall be entitled to (i) a Pro-Rata Bonus,
(ii) to the extent permitted pursuant to the applicable plans, the continuation on the same
terms as an active employee of Welfare Benefits the Executive would otherwise be eligible to
receive as an active employee of the Company for thirty-six (36) months following date of his
Retirement or, if earlier, until such time as the Executive becomes eligible for Welfare Benefits
from a subsequent employer and, thereafter, shall be eligible to continue participation in the
Company’s Welfare Benefits plans, provided that such continued participation shall be entirely at
the Executive’s expense and shall cease when the Executive becomes eligible for Welfare Benefits
from a subsequent employer and (iii) the provision of an office at the Company’s headquarters and
use of such offices and the Company facilities and administrative support at the Company’s expense
for thirty-six (36) months following the date of his Retirement and at the Executive’s expense
thereafter, provided that such use shall not interfere with Company use thereof. Notwithstanding
the foregoing, (x) if the Executive is not permitted to continue participation in the Company’s
Welfare Benefit plans pursuant to the terms of such plans or pursuant to a determination by the
Company’s insurance providers or such continued participation in any plan would result in the plan
being discriminatory within the meaning of Section 4980D of the Code, the Company shall use
reasonable efforts to obtain individual insurance policies providing the Welfare Benefits to the
Executive for such thirty-six (36) months, but shall only be required to pay for such policies an
amount equal to the amount the Company would have paid had the Executive continued participation in
the Company’s Welfare Benefit plans; provided, that, if such coverage cannot be
obtained, the Company shall pay to the

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Executive monthly for such thirty-six (36) months an amount equal to the amount the Company
would have paid had the Executive continued participation in the Company’s Welfare Benefits plans
and (y) any Welfare Benefits coverage provided pursuant to this Section 3.2(e), whether through the
Company’s Welfare Benefit plans or through individual insurance policies, shall be supplemental to
any benefits for which the Executive becomes eligible under Medicare, whether or not the Executive
actually obtains such Medicare coverage. The Pro-Rata Bonus shall be paid at the time when annual
bonuses are paid generally to the Company’s senior executives for the year in which the Executive’s
Retirement occurs.

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

                         (1) A resignation for “Good Reason” shall mean a resignation by the Executive within
thirty (30) days following the date on which the Company has engaged in any of the following (each
a “Good Reason Event”): (i) the assignment of duties or responsibilities to the Executive
that reflect a material diminution of the Executive’s position with the Company; provided,
however, that the hiring of a chief executive officer by CVR GP, LLC shall not be a Good
Reason Event if, immediately thereafter, the Executive is the chairman of the board of directors of
CVR GP, LLC, (ii) a relocation of the Executive’s principal place of employment that increases the
Executive’s commute by more than fifty (50) miles; (iii) a reduction in the Executive’s Base
Salary, other than across-the-board reductions applicable to similarly situated employees of the
Company; or (iv) a Change in Control in which the Executive does not concurrently receive an
employment contract substantially in the form of this Employment Agreement from the successor
company; provided, however, that the Executive must provide the Company with notice
promptly following the occurrence of any of the foregoing and at least ten (10) business days to
cure. Notwithstanding the foregoing, if a Good Reason Event occurs upon or following a Change in
Control and prior to the tenth (10th) business day prior to the first (1st)
anniversary of the Change in Control, a resignation for Good Reason (i) may not be effective prior
to the ninetieth (90th) day after the date of the occurrence of the Change in Control
and (ii) may be effective at any time within the period commencing ninety (90) days after the date
of the occurrence of the Change in Control and ending on the first anniversary of the date of the
occurrence of the Change in Control; provided, however, that the Executive must
provide the Company with notice of the occurrence of the Good Reason Event and at least ten (10)
business days to cure.

                         (2) “Cause” shall mean that the Executive has engaged 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; provided, however, that
the Executive’s refusal to participate in or perform any act on behalf of the Company which upon
advice of counsel the Executive in good faith believes is illegal or unethical shall not constitute
Cause; (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 Executive’s employment-related duties or to
represent the Company and its Affiliates); provided, however, that (A) if the
Executive is terminated for Cause by reason of Executive’s indictment

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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
Welfare Benefits plans) the payments and benefits set forth in Section 3.2(a) and, to the extent
either or both are applicable, Section 3.2(b) and Section 3.2(e), following such dismissal,
withdrawal or finding, payable in the manner and subject to the conditions set forth in such
Sections 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 or any Affiliate after
written notice of such breach and failure by the Executive to cure such breach within ten (10)
business days; provided, however, that no such notice of, nor opportunity to cure, such breach
shall be required hereunder if the breach cannot be cured by the Executive.

                         (3) “Change in Control” shall have the meaning set forth on Appendix A.

                         (4) “Change in Control Related Termination” shall mean a termination of the
Executive’s employment by the Company other than for Cause or Executive’s resignation for Good
Reason, in each case at any time prior to the date of a Change in Control and (A) the Executive
reasonably demonstrates that such termination or the basis for resignation for Good Reason occurred
in anticipation of a transaction that, if consummated, would constitute a Change in Control, (B)
such termination or the basis for resignation for Good Reason occurred after the Company entered
into a definitive agreement, the consummation of which would constitute a Change in Control or (C)
the Executive reasonably demonstrates that such termination or the basis for resignation for Good
Reason was implemented at the request of a third party who has indicated an intention or has taken
steps reasonably calculated to effect a Change in Control.

                         (5) “Disability” shall mean that: (i) the Executive is unable to perform his duties
hereunder as a result of illness or physical injury for a period of at least ninety (90) days; (ii)
the Executive is entitled to receive payments under the Company’s long-term disability insurance
plan; (iii) the Executive has started to receive such disability insurance payments; and (iv) no
person has contested or questioned the Executive’s right to receive such payments or, if such
payments have been contested, the Company has irrevocably and unconditionally agreed to pay the
Executive such amounts as will net to the Executive after reduction for applicable federal and
state income taxes the same amount as he would have received after such taxes from such insurance.
The “Date of Disability” shall mean the first date on which all of the requirements set
forth in clauses (i) through (iv) above have been satisfied.

                         (6) “Pro-Rata Bonus” shall mean, the product of (A) a fraction, the numerator of which
is the number of days the Executive is employed by the

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Company during the year in which the Executive’s employment terminates pursuant to Section
3.2(a), (c), (d) or (e) prior to and including the date of the Executive’s termination and the
denominator of which is 365 and (B)(i) if the Annual Bonus is payable pursuant to a plan that is
intended to provide for the payment of bonuses that constitute “performance-based compensation”
within the meaning of Section 162(m) of the Code, an amount for that year equal to the Annual Bonus
the Executive would have been entitled to receive had his employment not terminated, based on the
actual performance of the Company or the Executive, as applicable, for the full year, or (ii) if
the Annual Bonus is not payable pursuant to a plan that is intended to provide for the payment of
bonuses that constitute “performance-based compensation”, the target Annual Bonus for that year.

                         (7) “Retirement” shall mean the Executive’s termination or resignation of employment
for any reason (other than by the Company for Cause or by reason of the Executive’s death)
following the date the Executive attains age 62.

                    (g) Section 409A. To the extent applicable, this Employment Agreement shall be
interpreted, construed and operated in accordance with Section 409A of the Code and the Treasury
regulations and other guidance issued thereunder. If on the date of the Executive’s separation from
service (as defined in Treasury Regulation §1.409A-1(h)) with the Company the Executive is a
specified employee (as defined in Code Section 409A and Treasury Regulation §1.409A-1(i)), no
payment constituting the “deferral of compensation” within the meaning of Treasury Regulation
§1.409A-1(b) and after application of the exemptions provided in Treasury Regulation
§§1.409A-1(b)(4) and 1.409A-1(b)(9)(iii) shall be made to Executive at any time during the six (6)
month period following the Executive’s separation from service, and any such amounts deferred such
six (6) months shall instead be paid in a lump sum on the first payroll payment date following
expiration of such six (6) month period. For purposes of conforming this Employment Agreement to
Section 409A of the Code, the parties agree that any reference to termination of employment,
severance from employment, resignation from employment or similar terms shall mean and be
interpreted as a “separation from service” as defined in Treasury Regulation §1.409A-1(h).

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

               3.4. Resignation from All Positions. Upon the termination or resignation 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 or resignation, from and with respect to all positions
the Executive then holds as an officer, director, employee and member of the Board of Directors
(and any committee thereof) of the Company and any of its Affiliates.

               3.5. Cooperation. Following the termination or resignation of the Executive’s
employment with the Company for any reason and during any period in which the Executive is
receiving Severance Payments or Supplemental Disability Payments, or for one (1) year following
termination or resignation of the Executive’s employment with the Company if no Severance Payments
or Supplemental Disability Payments are payable, the Executive agrees to

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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 Affiliates, provided, however, such period of cooperation
shall be for three (3) years, following any such termination or resignation of Executive’s
employment for any reason, with respect to tax matters involving the Company or any of its
Affiliates. 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 and any Affiliates, 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, for
purposes of this Section 4, 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 Executive’s 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. Executive’s confidentiality covenant
has no temporal, geographical or territorial restriction. Upon termination or resignation 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 other tangible products or
documents, in each case which have been produced by, received by or otherwise submitted to the
Executive during or prior to the Executive’s employment with the

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Company and which are or contain Confidential Information, and any copies thereof in
Executive’s (or capable of being reduced to Executive’s) 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
Term and thereafter for the period during which the Severance Payments or Supplemental Disability
Payments are payable or one (1) year following the end of the Term if no Severance Payments or
Supplemental Disability Payments are payable (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 (the “Exchange Act”), 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
Affiliates conducted during the preceding twelve (12) months (or following the Term, the twelve
(12) months preceding the last day of the Term), or (ii) proposed to be conducted by the Company or
any of its Affiliates in the Company’s or Affiliate’s business plan as in effect at that time (or
following the Term, the business plan as in effect as of the last day of the Term);
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 Affiliates 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 Affiliates 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) the foregoing shall not prohibit the Executive from working in the State of Texas;
provided, that the Executive’s so working does not involve any Restricted Enterprise that
is operating in the State of Texas if the Company or any of its Affiliates is then operating in the
State of Texas and (B) 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 solicit (or assist any Person to 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 Affiliates, provided, however, that this Section 4.3 shall not
prohibit the hiring of any individual as a result of the individual’s response to an advertisement
in a publication of general circulation.

10

 

               4.4. Non-Solicitation of Customers/Suppliers. During the Restriction Period, the
Executive shall not (i) solicit (or assist any Person to solicit) any Person which has a business
relationship with the Company or of any of its Affiliates in order to terminate, curtail or
otherwise interfere with such business relationship or (ii) solicit, other than on behalf of the
Company and its Affiliates, any Person that the Executive knows or should have known (x) is a
current customer of the Company or any of its Affiliates in any geographic area in which the
Company or any of its Affiliates operates or markets or (y) is a Person in any geographic area in
which the Company or any of its Affiliates operates or markets with respect to which the Company or
any of its Affiliates 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 Affiliates 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 Affiliates operates or markets, any Person that is a customer or
potential customer of the Company or any of its Affiliates in the geographic areas in which it
operates or markets.

               4.5. Extension of Restriction Period. The Restriction Period shall be extended for a
period of time equal to 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 Executive, 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 Affiliates, the Executive assigns all
of Executive’s 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 Affiliates 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 Executive’s execution of this Employment Agreement, the
Executive has informed the Company in writing of any interest in any inventions or intellectual
property rights that Executive 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

11

 

appoints the Company, its Affiliates, and their 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.

               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 and its Affiliates for which the
Company and its Affiliates 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 and its Affiliates
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 and its Affiliates may be entitled at law or in equity, including, without
limitation, the obligation of the Executive to return any Severance Payments or Supplemental
Disability Payments made by the Company to the Company. The terms of this paragraph shall not
prevent the Company or its Affiliates 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 Executive’s
material participation in the operation of such businesses.

     Section 5. Representation.

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

12

 

     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 Code.

               7.1. Payment Reduction. Notwithstanding anything contained in this Employment
Agreement to the contrary, (i) to the extent that any payment or distribution of 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 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”) constitute “parachute payments”
(within the meaning of Section 280G of the Code), and if (ii) such aggregate would, if reduced by
all federal, state and local taxes applicable thereto, including the excise tax imposed under
Section 4999 of the Code (the “Excise Tax”), be less than the amount the Executive would
receive, after all taxes, if the Executive received aggregate Payments equal (as valued under
Section 280G of the Code) to only three times the Executive’s “base amount” (within the meaning of
Section 280G of the Code), less $1.00, then (iii) such 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. If the Payments are so reduced, 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.

               7.2. Determination of Amount of Reduction (if any). 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

13

 

manifest error, such Determination shall be binding, final and conclusive upon the Company and
the Executive.

     Section 8. Miscellaneous.

               8.1. Indemnification. To the extent permitted by applicable law and subject to any
separate agreement (if any) between the Company and the Executive regarding indemnification, the
Company shall indemnify the Executive for losses or damages incurred by the Executive as a result
of all 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. This indemnity shall not apply to
the Executive’s acts of willful misconduct or gross negligence. The Executive shall be covered
under any directors’ and officers’ insurance that the Company maintains for its directors and other
officers in the same manner and on the same basis as the Company’s directors and other officers.

               8.2. Fees and Expenses. The Company shall pay all legal fees and related expenses
(including the costs of experts, evidence and counsel) incurred by the Executive as a result of (i)
the termination of the Executive’s employment by the Company or the resignation by the Executive
for Good Reason (including all such fees and expenses, if any, incurred in contesting, defending or
disputing the basis for any such termination or resignation of employment) or (b) the Executive
seeking to obtain or enforce any right or benefit provided by this
Employment Agreement; provided,
that, if it is determined that the Executive’s termination of employment was for Cause, the
Executive shall not be entitled to any payment or reimbursement pursuant to this Section 8.2.

               8.3. 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 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.

               8.4. 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.

               8.5. Payments Following Executive’s Death. Any amounts payable to the Executive
pursuant to this Agreement that remain unpaid at the Executive’s death shall be paid to the
Executive’s estate.

14

 

               8.6. 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:

	 	CVR Energy, Inc.
	 

	 	10 E. Cambridge Circle, Suite 250
	 

	 	Kansas City, KS 66103
	 

	 	Attention: General Counsel
	 

	 	Facsimile: (913) 982-5651
	 
	 	 
	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
	 
	 	 
	If to the Executive:

	 	John J. Lipinski
	 

	 	2277 Plaza Drive, Suite 500
	 

	 	Sugar Land, TX 77479
	 

	 	Facsimile: (281) 207-3505

          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.

               8.7. 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 Texas, 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 Texas (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.

               8.8. 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

15

 

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.

               8.9. Entire Agreement. From and after the Commencement 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, relating to any employment of the Executive by the Company or any of its
Affiliates including, without limitation, the First Amended and Restated Agreement and the Second
Amended and Restated Agreement.

               8.10. 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.

               8.11. 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, 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.

               8.12. 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.

               8.13. 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
Welfare Benefits provided pursuant to Section 3.2(a) or 3.2(e), 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.

               8.14. Company Actions. Any actions, approvals, decisions, or determinations to be
made by the Company under this Employment Agreement shall be made by the Company’s Board, except as
otherwise expressly provided herein.

[signature page follows]

16

 

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

	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	CVR ENERGY, INC.

	 	 
	/s/ John J. Lipinski	 	 	 	By:	 	/s/ Stanley A. Riemann	 	 
	 	 	 	 	 	 	 	 	 
	JOHN J. LIPINSKI

	 	 	 	 	 	Name:
	 	Stanley A. Riemann	 	 
	 

	 	 	 	 	 	Title:
	 	Chief Operating Officer	 	 

[Signature Page to Third Amended and Restated Employment Agreement]

 

 

APPENDIX A

“Change in Control” means the occurrence of any of the following:

     (a) An acquisition (other than directly from the Company) of any voting securities of the
Company (the “Voting Securities”) by any “Person” (as the term “person” is used for
purposes of Section 13(d) or 14(d) of the Exchange Act), immediately after which such Person has
“Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
more than thirty percent (30%) of (i) the then-outstanding Shares or (ii) the combined voting power
of the Company’s then-outstanding Voting Securities; provided, however, that in determining whether
a Change in Control has occurred pursuant to this paragraph (a), the acquisition of Shares or
Voting Securities in a Non-Control Acquisition (as hereinafter defined) shall not constitute a
Change in Control. A “Non-Control Acquisition” shall mean an acquisition by (i) an
employee benefit plan (or a trust forming a part thereof) maintained by (A) the Company or (B) any
corporation or other Person the majority of the voting power, voting equity securities or equity
interest of which is owned, directly or indirectly, by the Company (for purposes of this
definition, a “Related Entity”), (ii) the Company, any Principal Stockholder or any Related
Entity, or (iii) any Person in connection with a Non-Control Transaction (as hereinafter defined);

     (b) The consummation of:

          (i) A merger, consolidation or reorganization (x) with or into the Company or (y) in which
securities of the Company are issued (a “Merger”), unless such Merger is a “Non-Control
Transaction.” A “Non-Control Transaction” shall mean a Merger in which:

               (A) the shareholders of the Company immediately before such Merger own directly or indirectly
immediately following such Merger at least a majority of the combined voting power of the
outstanding voting securities of (1) the corporation resulting from such Merger (the “Surviving
Corporation”), if fifty percent (50%) or more of the combined voting power of the then
outstanding voting securities by the Surviving Corporation is not Beneficially Owned, directly or
indirectly, by another Person (a “Parent Corporation”) or (2) if there is one or more than
one Parent Corporation, the ultimate Parent Corporation;

               (B) the individuals who were members of the Board immediately prior to the execution of the
agreement providing for such Merger constitute at least a majority of the members of the board of
directors of (1) the Surviving Corporation, if there is no Parent Corporation, or (2) if there is
one or more than one Parent Corporation, the ultimate Parent Corporation; and

               (C) no Person other than (1) the Company or another corporation that is a party to the
agreement of Merger, (2) any Related Entity, (3) any employee benefit plan (or any trust forming a
part thereof) that, immediately prior to the Merger, was maintained by the Company or any Related
Entity, or (4) any Person who, immediately prior to the Merger, had Beneficial Ownership of thirty
percent (30%) or more of the then outstanding Shares or Voting Securities, has Beneficial
Ownership, directly or indirectly, of thirty percent (30%) or more of

 

 

the combined voting power of the outstanding voting securities or common stock of (x) the
Surviving Corporation, if there is no Parent Corporation, or (y) if there is one or more than one
Parent Corporation, the ultimate Parent Corporation.

          (ii) A complete liquidation or dissolution of the Company; or

          (iii) The sale or other disposition of all or substantially all of the assets of the Company
and its Subsidiaries taken as a whole to any Person (other than (x) a transfer to a Related Entity
or (y) the distribution to the Company’s shareholders of the stock of a Related Entity or any other
assets).

     Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because
any Person (the “Subject Person”) acquired Beneficial Ownership of more than the permitted
amount of the then outstanding Shares or Voting Securities as a result of the acquisition of Shares
or Voting Securities by the Company which, by reducing the number of Shares or Voting Securities
then outstanding, increases the proportional number of shares Beneficially Owned by the Subject
Persons; provided that if a Change in Control would occur (but for the operation of this sentence)
as a result of the acquisition of Shares or Voting Securities by the Company and, after such share
acquisition by the Company, the Subject Person becomes the Beneficial Owner of any additional
Shares or Voting Securities and such Beneficial Ownership increases the percentage of the then
outstanding Shares or Voting Securities Beneficially Owned by the Subject Person, then a Change in
Control shall occur.

     For purposes of this definition: (i) “Shares” means the common stock, par value $.01
per share, of the Company and any other securities into which such shares are changed or for which
such shares are exchanged and (ii) “Principal Stockholder” means each of Kelso Investment
Associates VII, L.P., a Delaware limited partnership, KEP VI, LLC, a Delaware limited liability
company, GS Capital Partners V Fund, L.P., a Delaware limited partnership, GS Capital Partners V
Offshore Fund, L.P., a Cayman Islands exempted limited partnership, GS Capital Partners V
Institutional, L.P., a Delaware limited partnership and GS Capital Partners V GmbH & Co. KG, a
German limited partnership.exv10w17

Exhibit 10.17

SECOND AMENDED AND RESTATED 

EMPLOYMENT AGREEMENT

     SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT, dated as of January 1, 2011 (the
“Employment Agreement”), by and between CVR ENERGY, INC., a Delaware corporation (the
“Company”), and EDWARD MORGAN (the “Executive”).

     WHEREAS, the Company and the Executive entered into an employment agreement dated April 1,
2009, as amended by an amendment to such employment agreement dated August 17, 2009 (as amended,
the “Original Agreement”) and an amended and restated employment agreement dated January 1,
2010 (the “Amended and Restated Agreement”);

     WHEREAS, the Company and the Executive desire to amend and restate the Original Agreement in
its entirety as provided for herein;

     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 January 1, 2011 (the “Commencement Date”) and ending on the earlier of (i)
the third (3rd) anniversary of the Commencement Date and (ii) the termination or resignation of the
Executive’s employment in accordance with Section 3 hereof (the “Term”).

               1.2. Duties. During the Term, the Executive shall serve as Chief Financial Officer
and Treasurer of the Company and such other or additional positions as an officer or director of
the Company, and of such direct or indirect affiliates of the Company (“Affiliates”), as
the Executive and the board of directors of the Company (the “Board”) or its designee 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
Executive’s working time and attention to the business and affairs of the Company and its
Affiliates, shall faithfully serve the Company and its Affiliates, and shall in all material
respects conform to and comply with the lawful and reasonable directions and instructions given to
Executive by the Board, or its designee, consistent with Section 1.2 hereof. During the Term, the
Executive shall use Executive’s best efforts during Executive’s working time to promote and serve
the interests of the Company and its Affiliates 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 Executive’s
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.

     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
$335,000 which annual salary shall be prorated for any partial year at the beginning or end of the
Term and shall accrue and be payable in accordance with the Company’s standard payroll policies, as
such salary may be adjusted upward by the Compensation Committee of the Board in its discretion (as
adjusted, the “Base Salary”).

               2.2. 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”).
Commencing with fiscal year 2011, the target Annual Bonus shall be 120% of the Executive’s Base
Salary as in effect at the beginning of the Term in fiscal year 2011 and at the beginning of each
such fiscal year thereafter during the Term, the actual Annual Bonus to be based upon such
individual and/or Company performance criteria established for each such fiscal year by the
Compensation Committee of the Board. The Annual Bonus, if any, payable to Executive for a fiscal
year will be paid by the Company to the Executive on the last scheduled payroll payment date during
such fiscal year; provided, however, that if the Annual Bonus is payable pursuant to a plan that is
intended to provide for the payment of bonuses that constitute “performance-based compensation”
within the meaning of Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”),
the Annual Bonus shall be paid at such time as is provided in the applicable plan.

               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. Paid Time Off. During the Term, the Executive shall be entitled to twenty-five
(25) days of paid time off (“PTO”) each year.

               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 Executive’s 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. Notwithstanding anything herein to the contrary or otherwise, except
to the extent any expense or reimbursement described in this Employment Agreement does not
constitute a “deferral of compensation” within the meaning of Section 409A of the Code and the
Treasury regulations and other guidance issued thereunder, any expense or reimbursement described
in this Employment Agreement shall meet the following requirements: (i) the amount of expenses
eligible for reimbursement provided to the Executive during any calendar year will not affect the
amount of expenses eligible for reimbursement to the Executive in any other calendar year; (ii) the
reimbursements for expenses for which the Executive is entitled to be reimbursed shall be made on
or before the last day of the

2

 

calendar year following the calendar year in which the applicable expense is incurred; (iii)
the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or
exchanged for any other benefit; and (iv) the reimbursements shall be made pursuant to objectively
determinable and nondiscretionary Company policies and procedures regarding such reimbursement of
expenses.

     Section 3. Employment Termination.

               3.1. Termination of Employment. The Company may terminate the Executive’s employment
for any reason during the Term, and the Executive may voluntarily resign Executive’s 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 or
resignation 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 or resignation, any earned but unpaid Annual Bonus for completed fiscal years,
any unused accrued PTO 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; Resignation by the
Executive for Good Reason. If during the Term (i) the Executive’s employment is terminated by
the Company other than for Cause or Disability or (ii) the Executive resigns for Good Reason, then
in addition to the Accrued Amounts the Executive shall be entitled to the following payments and
benefits: (x) the continuation of Executive’s Base Salary at the rate in effect immediately prior
to the date of termination or resignation (or, in the case of a resignation for Good Reason, at the
rate in effect immediately prior to the occurrence of the event constituting Good Reason, if
greater) for a period of twelve (12) months (or, if earlier, until and including the month in which
the Executive attains age 70) (the “Severance Period”) and (y) a Pro-Rata Bonus and (z) to
the extent permitted pursuant to the applicable plans, the continuation on the same terms as an
active employee (including, where applicable, coverage for the Executive and the Executive’s
dependents) of medical, dental, vision and life insurance benefits (“Welfare Benefits”) the
Executive would otherwise be eligible to receive as an active employee of the Company for twelve
(12) months or, if earlier, until such time as the Executive becomes eligible for Welfare Benefits
from a subsequent employer (the “Welfare Benefit Continuation Period”) (such payments,
collectively, the “Severance Payments”). If the Executive is not permitted to continue
participation in the Company’s Welfare Benefit plans pursuant to the terms of such plans or
pursuant to a determination by the Company’s insurance providers or such continued participation in
the plan would result in the imposition of an excise tax to the Company pursuant to Section 4980D
of the Code, the Company shall use reasonable efforts to obtain individual insurance policies
providing the Welfare Benefits to the Executive during the Welfare Benefit Continuation Period and,
if applicable, the Additional Welfare Benefit Continuation Period (as defined below), but shall
only be required to pay for such policies an amount equal to the amount the Company would have paid
had the Executive continued participation in the Company’s Welfare Benefits plans;
provided, that, if such coverage cannot be obtained, the Company shall pay to the
Executive monthly during the Welfare Benefit

3

 

Continuation Period and, if applicable, the Additional Welfare Benefit Continuation Period, an
amount equal to the amount the Company would have paid had the Executive continued participation in
the Company’s Welfare Benefits plans. The Company’s obligations to make the Severance Payments
shall be conditioned upon: (i) the Executive’s continued compliance with Executive’s 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 or resignation of employment with the Company (the
“Release”) in a form reasonably acceptable to the Company and the Executive that becomes
effective not later than forty-five (45) days after the date of such termination or resignation of
employment. 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 the foregoing and Section 3.2(e), the Severance Payments will commence to be paid to the
Executive on the forty-fifth (45th) day following the Executive’s termination of
employment, except that the Pro-Rata Bonus shall be paid at the time when annual bonuses are paid
generally to the Company’s senior executives for the year in which the Executive’s termination of
employment occurs.

                    (b) Change in Control Termination. If (A) (i) the Executive’s employment is
terminated by the Company other than for Cause or Disability, or (ii) the Executive resigns for
Good Reason, and such termination or resignation described in (i) or (ii) of this Clause (A) occurs
within the one (1) year period following a Change in Control, or (B) the Executive’s termination or
resignation is a Change in Control Related Termination, then, in addition to the Severance Payments
described in Section 3.2(a), the Executive shall also be entitled to (I) the continuation of
Executive’s Base Salary at the rate in effect immediately prior to the date of termination or
resignation (determined without regard to any reduction in Base Salary subsequent to the Change in
Control or in connection with the Change in Control Related Termination) for a period of twelve
(12) months (or, if earlier, until and including the month in which the Executive attains age 70)
commencing on the one (1) year anniversary of the date of termination or resignation (the
“Additional Severance Period”), (II) a payment each month during the Severance Period and
the Additional Severance Period equal to one-twelfth (1/12th) of the target Annual Bonus
for the year in which the Executive’s termination or resignation occurs (determined without regard
to any reduction in Base Salary or target Annual Bonus percentage subsequent to the Change in
Control or in connection with the Change in Control Related Termination) and (III) the continuation
of the Welfare Benefits for the twelve (12) month period commencing on the one (1) year anniversary
of the date of termination or resignation or, if earlier, until such time as the Executive becomes
eligible for Welfare Benefits from a subsequent employer (the “Additional Welfare Benefit
Continuation Period”). Amounts received pursuant to this Section 3.2(b) shall be deemed to be
included in the term Severance Payments for purposes of this Employment Agreement.

                    (c) Retirement. Upon Retirement, the Executive, whether or not Section 3.2(a) also
applies but without duplication of benefits, shall be entitled to (i) a Pro-Rata Bonus, (ii) to the
extent permitted pursuant to the applicable plans, the continuation on the same terms as an active
employee of Welfare Benefits the Executive would otherwise be eligible to receive as an active
employee of the Company for twenty-four (24) months following the date of the Executive’s
Retirement or, if earlier, until such time as the Executive becomes eligible for

4

 

Welfare Benefits from a subsequent employer and, thereafter, shall be eligible to continue
participation in the Company’s Welfare Benefits plans, provided that such continued participation
shall be entirely at the Executive’s expense and shall cease when the Executive becomes eligible
for Welfare Benefits from a subsequent employer. Notwithstanding the foregoing, (x) if the
Executive is not permitted to continue participation in the Company’s Welfare Benefit plans
pursuant to the terms of such plans or pursuant to a determination by the Company’s insurance
providers or such continued participation in any plan would result in the plan being discriminatory
within the meaning of Section 4980D of the Code, the Company shall use reasonable efforts to obtain
individual insurance policies providing the Welfare Benefits to the Executive for such twenty-four
(24) months, but shall only be required to pay for such policies an amount equal to the amount the
Company would have paid had the Executive continued participation in the Company’s Welfare Benefit
plans; provided, that, if such coverage cannot be obtained, the Company shall pay to the Executive
monthly for such twenty-four (24) months an amount equal to the amount the Company would have paid
had the Executive continued participation in the Company’s Welfare Benefits plans and (y) any
Welfare Benefits coverage provided pursuant to this Section 3.2(b), whether through the Company’s
Welfare Benefit plans or through individual insurance policies, shall be supplemental to any
benefits for which the Executive becomes eligible under Medicare, whether or not the Executive
actually obtains such Medicare coverage. The Pro-Rata Bonus shall be paid at the time when annual
bonuses are paid generally to the Company’s senior executives for the year in which the Executive’s
Retirement occurs.

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

                         (1) A resignation for “Good Reason” shall mean a resignation 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 the foregoing and
at least thirty (30) days to cure.

                         (2) “Cause” shall mean that the Executive has engaged 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 Executive’s employment-related duties or to represent the Company and its Affiliates);
provided, however, that (A) if the Executive is terminated for Cause by reason of
Executive’s 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

5

 

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 Welfare Benefits plans) the payments
and benefits set forth in Section 3.2(a) and, to the extent either or both are applicable, Section
3.2(b) and Section 3.2(c), following such dismissal, withdrawal or finding, payable in the manner
and subject to the conditions set forth in such Sections 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 or any Affiliate 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) “Change in Control” shall have the meaning set forth on Appendix A.

                         (4) “Change in Control Related Termination” shall mean a termination of the
Executive’s employment by the Company other than for Cause or Executive’s resignation for Good
Reason, in each case at any time prior to the date of a Change in Control and (A) the Executive
reasonably demonstrates that such termination or the basis for resignation for Good Reason occurred
in anticipation of a transaction that, if consummated, would constitute a Change in Control, (B)
such termination or the basis for resignation for Good Reason occurred after the Company entered
into a definitive agreement, the consummation of which would constitute a Change in Control or (C)
the Executive reasonably demonstrates that such termination or the basis for resignation for Good
Reason was implemented at the request of a third party who has indicated an intention or has taken
steps reasonably calculated to effect a Change in Control.

                         (5) “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.

                         (6) “Pro-Rata Bonus” shall mean, the product of (A) a fraction, the numerator of which
is the number of days the Executive is employed by the Company during the year in which the
Executive’s employment terminates pursuant to Section 3.2(a) or (c) prior to and including the date
of the Executive’s termination and the denominator of which is 365 and (B)(i) if the Annual Bonus
is payable pursuant to a plan that is intended to provide for the payment of bonuses that
constitute “performance-based compensation” within the meaning of Section 162(m) of the Code, an
amount for that year equal to the Annual Bonus the Executive would have been entitled to receive
had his employment not terminated, based on the actual performance of the Company or the Executive,
as applicable, for the full year, or (ii) if the Annual Bonus is not payable pursuant to a plan
that is intended to provide for the payment of

6

 

bonuses that constitute “performance-based compensation”, the target Annual Bonus for that
year.

                         (7) “Retirement” shall mean the Executive’s termination or resignation of employment
for any reason (other than by the Company for Cause or by reason of the Executive’s death)
following the date the Executive attains age 62.

                    (e) Section 409A. To the extent applicable, this Employment Agreement shall be
interpreted, construed and operated in accordance with Section 409A of the Code and the Treasury
regulations and other guidance issued thereunder. If on the date of the Executive’s separation from
service (as defined in Treasury Regulation §1.409A-1(h)) with the Company the Executive is a
specified employee (as defined in Code Section 409A and Treasury Regulation §1.409A-1(i)), no
payment constituting the “deferral of compensation” within the meaning of Treasury Regulation
§1.409A-1(b) and after application of the exemptions provided in Treasury Regulation
§§1.409A-1(b)(4) and 1.409A-1(b)(9)(iii) shall be made to Executive at any time during the six (6)
month period following the Executive’s separation from service, and any such amounts deferred such
six (6) months shall instead be paid in a lump sum on the first payroll payment date following
expiration of such six (6) month period. For purposes of conforming this Employment Agreement to
Section 409A of the Code, the parties agree that any reference to termination of employment,
severance from employment, resignation from employment or similar terms shall mean and be
interpreted as a “separation from service” as defined in Treasury Regulation §1.409A-1(h).

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

               3.4. Resignation from All Positions. Upon the termination or resignation 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 or resignation, from and with respect to all positions
the Executive then holds as an officer, director, employee and member of the Board of Directors
(and any committee thereof) of the Company and any of its Affiliates.

               3.5. Cooperation. For one (1) year following the termination or resignation 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
Affiliates, provided, however, such period of cooperation shall be for three (3) years, following
any such termination or resignation of Executive’s employment for any reason, with respect to tax
matters involving the Company or any of its Affiliates. 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

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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-Competition; Non-Solicitation;
Proprietary Rights.

               4.1. Unauthorized Disclosure. The Executive agrees and understands that in the
Executive’s position with the Company and any Affiliates, 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, for
purposes of this Section 4, 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 Executive’s 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. Executive’s confidentiality covenant
has no temporal, geographical or territorial restriction. Upon termination or resignation 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 by or otherwise submitted to the Executive during
or prior to the Executive’s employment with the Company, and any copies thereof in Executive’s (or
capable of being reduced to Executive’s) 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
Term 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

8

 

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 (the “Exchange Act”),
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 Affiliates conducted during the preceding twelve (12) months
(or following the Term, the twelve (12) months preceding the last day of the Term), or (ii)
proposed to be conducted by the Company or any of its Affiliates in the Company’s or Affiliate’s
business plan as in effect at that time (or following the Term, the business plan as in effect as
of the last day of the Term); 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 Affiliates
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
Affiliates 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 Affiliates.

               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 Affiliates
in order to terminate, curtail or otherwise interfere with such business relationship or (ii)
solicit, other than on behalf of the Company and its Affiliates, any Person that the Executive
knows or should have known (x) is a current customer of the Company or any of its Affiliates in any
geographic area in which the Company or any of its Affiliates operates or markets or (y) is a
Person in any geographic area in which the Company or any of its Affiliates operates or markets
with respect to which the Company or any of its Affiliates 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 Affiliates 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 Affiliates operates or markets, any Person
that is a customer or potential customer of the Company or any of its Affiliates in the geographic
areas in which it operates or markets.

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

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               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 Executive, 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 Affiliates, the Executive assigns all
of Executive’s 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 Affiliates 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 Executive’s execution of this Employment Agreement, the
Executive has informed the Company in writing of any interest in any inventions or intellectual
property rights that Executive 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, its Affiliates, and their 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.

               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 and its Affiliates for

10

 

which the Company and its Affiliates 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 and its
Affiliates 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 and its Affiliates 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 or its
Affiliates 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 Executive’s material participation in the
operation of such businesses.

     Section 5. Representation.

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

               7.1. Payment Reduction. Notwithstanding anything contained in this Employment
Agreement to the contrary, (i) to the extent that any payment or distribution of 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 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”) constitute “parachute payments”
(within the meaning of Section 280G of the Code), and if (ii) such aggregate would, if reduced by
all federal, state and local taxes applicable thereto, including the excise tax imposed under
Section 4999 of the Code (the “Excise Tax”), be less than the amount the Executive would
receive, after all taxes, if the Executive received aggregate Payments equal (as valued under
Section 280G of the Code) to only three times the Executive’s “base amount” (within the meaning of
Section 280G of the Code), less $1.00, then (iii) such 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

11

 

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. If the Payments are so reduced, 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.

               7.2. Determination of Amount of Reduction (if any). 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 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. Fees and Expenses. The Company shall pay all legal fees and related expenses
(including the costs of experts, evidence and counsel) incurred by the Executive as a result of (i)
the termination of the Executive’s employment by the Company or the resignation by the Executive
for Good Reason (including all such fees and expenses, if any, incurred in contesting, defending or
disputing the basis for any such termination or resignation of

12

 

employment) or (b) the Executive seeking to obtain or enforce any right or benefit provided by
this Employment Agreement; provided, that, if it is determined that the Executive’s
termination of employment was for Cause, the Executive shall not be entitled to any payment or
reimbursement pursuant to this Section 8.2.

               8.3. Indemnification. To the extent provided in the Company’s Certificate of
Incorporation or Bylaws, as in effect from time to time, and subject to any separate agreement (if
any) between the Company and the Executive regarding indemnification, 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.

               8.4. 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.

               8.5. Payments Following Executive’s Death. Any amounts payable to the Executive
pursuant to this Employment Agreement that remain unpaid at the Executive’s death shall be paid to
the Executive’s estate.

               8.6. 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:

	 	CVR Energy, Inc.
	 

	 	10 E. Cambridge Circle, Suite 250
	 

	 	Kansas City, KS 66103
	 

	 	Attention: General Counsel
	 

	 	Facsimile: (913) 982-5651
	 
	 	 
	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
	 
	 	 
	If to the Executive:

	 	Edward Morgan
	 

	 	2277 Plaza Drive, Suite 500
	 

	 	Sugar Land, TX 77479
	 

	 	Facsimile: (281) 207-3389

13

 

          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.

               8.7. 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 Texas, 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 Texas (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.

               8.8. 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.

               8.9. Entire Agreement. From and after the Commencement 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, relating to any employment of the Executive by the Company or any of its
Affiliates including, without limitation, the Original Agreement and the Amended and Restated
Agreement.

               8.10. 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.

               8.11. 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, 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.

               8.12. 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

14

 

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.

               8.13. 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
Welfare Benefits provided pursuant to Section 3.2(a) or Section 3.2(b), 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.

               8.14. Company Actions. Any actions, approvals, decisions, or determinations to be
made by the Company under this Employment Agreement shall be made by the Company’s Board, except as
otherwise expressly provided herein. For purposes of any references herein to the Board’s
designee, any such reference shall be deemed to include the Chief Executive Officer of the Company
and such other or additional officers, or committees of the Board, as the Board may expressly
designate from time to time for such purpose.

[signature page follows]

15

 

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

	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	CVR ENERGY, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Edward Morgan	 	 	 	By:	 	/s/ John J. Lipinski	 	 
	 	 	 	 	 	 	 	 	 
	EDWARD MORGAN

	 	 	 	 	 	Name:
	 	John J. Lipinski	 	 
	 

	 	 	 	 	 	Title:
	 	Chief Executive Officer and President	 	 

[Signature
Page to Second Amended and Restated Employment Agreement]

 

 

APPENDIX A

“Change in Control” means the occurrence of any of the following:

     (a) An acquisition (other than directly from the Company) of any voting securities of the
Company (the “Voting Securities”) by any “Person” (as the term “person” is used for
purposes of Section 13(d) or 14(d) of the Exchange Act), immediately after which such Person has
“Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
more than thirty percent (30%) of (i) the then-outstanding Shares or (ii) the combined voting power
of the Company’s then-outstanding Voting Securities; provided, however, that in determining whether
a Change in Control has occurred pursuant to this paragraph (a), the acquisition of Shares or
Voting Securities in a Non-Control Acquisition (as hereinafter defined) shall not constitute a
Change in Control. A “Non-Control Acquisition” shall mean an acquisition by (i) an
employee benefit plan (or a trust forming a part thereof) maintained by (A) the Company or (B) any
corporation or other Person the majority of the voting power, voting equity securities or equity
interest of which is owned, directly or indirectly, by the Company (for purposes of this
definition, a “Related Entity”), (ii) the Company, any Principal Stockholder or any Related
Entity, or (iii) any Person in connection with a Non-Control Transaction (as hereinafter defined);

     (b) The consummation of:

          (i) A merger, consolidation or reorganization (x) with or into the Company or (y) in which
securities of the Company are issued (a “Merger”), unless such Merger is a “Non-Control
Transaction.” A “Non-Control Transaction” shall mean a Merger in which:

               (A) the shareholders of the Company immediately before such Merger own directly or indirectly
immediately following such Merger at least a majority of the combined voting power of the
outstanding voting securities of (1) the corporation resulting from such Merger (the “Surviving
Corporation”), if fifty percent (50%) or more of the combined voting power of the then
outstanding voting securities by the Surviving Corporation is not Beneficially Owned, directly or
indirectly, by another Person (a “Parent Corporation”) or (2) if there is one or more than
one Parent Corporation, the ultimate Parent Corporation;

               (B) the individuals who were members of the Board immediately prior to the execution of the
agreement providing for such Merger constitute at least a majority of the members of the board of
directors of (1) the Surviving Corporation, if there is no Parent Corporation, or (2) if there is
one or more than one Parent Corporation, the ultimate Parent Corporation; and

               (C) no Person other than (1) the Company or another corporation that is a party to the
agreement of Merger, (2) any Related Entity, (3) any employee benefit plan (or any trust forming a
part thereof) that, immediately prior to the Merger, was maintained by the Company or any Related
Entity, or (4) any Person who, immediately prior to the Merger, had Beneficial Ownership of thirty
percent (30%) or more of the then outstanding Shares or Voting Securities, has Beneficial
Ownership, directly or indirectly, of thirty percent (30%) or more of

 

 

the combined voting power of the outstanding voting securities or common stock of (x) the
Surviving Corporation, if there is no Parent Corporation, or (y) if there is one or more than one
Parent Corporation, the ultimate Parent Corporation.

          (ii) A complete liquidation or dissolution of the Company; or

          (iii) The sale or other disposition of all or substantially all of the assets of the Company
and its Subsidiaries taken as a whole to any Person (other than (x) a transfer to a Related Entity
or (y) the distribution to the Company’s shareholders of the stock of a Related Entity or any other
assets).

     Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because
any Person (the “Subject Person”) acquired Beneficial Ownership of more than the permitted
amount of the then outstanding Shares or Voting Securities as a result of the acquisition of Shares
or Voting Securities by the Company which, by reducing the number of Shares or Voting Securities
then outstanding, increases the proportional number of shares Beneficially Owned by the Subject
Persons; provided that if a Change in Control would occur (but for the operation of this sentence)
as a result of the acquisition of Shares or Voting Securities by the Company and, after such share
acquisition by the Company, the Subject Person becomes the Beneficial Owner of any additional
Shares or Voting Securities and such Beneficial Ownership increases the percentage of the then
outstanding Shares or Voting Securities Beneficially Owned by the Subject Person, then a Change in
Control shall occur.

     For purposes of this definition: (i) “Shares” means the common stock, par value $.01
per share, of the Company and any other securities into which such shares are changed or for which
such shares are exchanged and (ii) “Principal Stockholder” means each of Kelso Investment
Associates VII, L.P., a Delaware limited partnership, KEP VI, LLC, a Delaware limited liability
company, GS Capital Partners V Fund, L.P., a Delaware limited partnership, GS Capital Partners V
Offshore Fund, L.P., a Cayman Islands exempted limited partnership, GS Capital Partners V
Institutional, L.P., a Delaware limited partnership and GS Capital Partners V GmbH & Co. KG, a
German limited partnership.

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