Document:

exv4w2

Exhibit 4.2

REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT dated April 21, 2011 (this “Agreement”) is entered into by
and among Calumet Specialty Products Partners, L.P., a Delaware limited partnership (the
“Partnership”), Calumet Finance Corp., a Delaware corporation (“Calumet Finance,” and together with
the Partnership, the “Issuers”), the guarantors listed on the signature pages hereto (the
“Guarantors”), and Merrill Lynch, Pierce, Fenner & Smith, Incorporated (“Merrill Lynch”), Goldman,
Sachs & Co., Barclays Capital Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities, LLC
(collectively, the “Initial Purchasers”). The Issuers and the Guarantors are hereinafter referred
to collectively as the “Calumet Parties.”

     The Calumet Parties and the Initial Purchasers are parties to the Purchase Agreement dated
April 15, 2011 (the “Purchase Agreement”), which provides for the sale by the Issuers to the
Initial Purchasers of $400,000,000 aggregate principal amount of the Issuers’ 9 3/8% Senior Notes
due 2019 (the “Securities”) which will be guaranteed on an unsecured senior basis by each of the
Guarantors. As an inducement to the Initial Purchasers to enter into the Purchase Agreement, the
Calumet Parties have agreed to provide to the Initial Purchasers and their direct and indirect
transferees the registration rights set forth in this Agreement. The execution and delivery of
this Agreement is a condition to the closing under the Purchase Agreement.

     In consideration of the foregoing, the parties hereto agree as follows:

     1. Definitions. As used in this Agreement, the following terms shall have the
following meanings:

     “Additional Guarantor” shall mean any subsidiary of the Partnership that executes a Subsidiary
Guarantee under the Indenture after the date of this Agreement.

     “Business Day” shall mean any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed.

     “Calumet Finance” shall have the meaning set forth in the preamble and shall also include
Calumet Finance’s successors.

     “Calumet Parties” shall have the meaning set forth in the preamble.

     “DTC” shall mean the Depository Trust Company.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

     “Exchange Dates” shall have the meaning set forth in Section 2(a)(ii) hereof.

     “Exchange Offer” shall mean the exchange offer by the Calumet Parties of Exchange Securities
for Registrable Securities pursuant to Section 2(a) hereof.

 

 

     “Exchange Offer Registration” shall mean a registration under the Securities Act effected
pursuant to Section 2(a) hereof.

     “Exchange Offer Registration Statement” shall mean an exchange offer registration statement on
Form S-4 (or, if applicable, on another appropriate form) and all amendments and supplements to
such registration statement, in each case including the Prospectus contained therein, all exhibits
thereto and any document incorporated by reference therein.

     “Exchange Securities” shall mean senior notes issued by the Issuers and guaranteed by the
Guarantors under the Indenture containing terms identical to the Securities (except that the
Exchange Securities will not be subject to restrictions on transfer or to any increase in annual
interest rate for failure to comply with this Agreement) and to be offered to Holders of Securities
in exchange for Securities pursuant to the Exchange Offer.

     “Guarantors” shall have the meaning set forth in the preamble and shall also include any
Guarantor’s successors and any Additional Guarantors.

     “Holders” shall mean the Initial Purchasers, for so long as they own any Registrable
Securities, and each of their successors, assigns and direct and indirect transferees who become
owners of Registrable Securities under the Indenture; provided that for purposes of Sections 4 and
5 of this Agreement, the term “Holders” shall include Participating Broker-Dealers.

     “Indemnified Person” shall have the meaning set forth in Section 5(c) hereof.

     “Indemnifying Person” shall have the meaning set forth in Section 5(c) hereof.

     “Indenture” shall mean the Indenture relating to the Securities dated as of April 21, 2011
among the Calumet Parties and Wilmington Trust FSB, as trustee, and as the same may be amended from
time to time in accordance with the terms thereof.

     “Initial Purchasers” shall have the meaning set forth in the preamble.

     “Inspector” shall have the meaning set forth in Section 3(a)(xiii) hereof.

     “Issuer Information” shall have the meaning set forth in Section 5(a) hereof.

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

     “Merrill Lynch” shall have the meaning set forth in the preamble.

     “Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of
the outstanding Registrable Securities; provided that whenever the consent or approval of Holders
of a specified percentage of Registrable Securities is required hereunder, any Registrable
Securities owned directly or indirectly by the Issuers or any of their affiliates shall not be
counted in determining whether such consent or approval was given by the Holders of such required
percentage or amount; and provided, further, that if the Issuers shall issue any additional
Securities under the Indenture prior to consummation of the Exchange Offer or, if applicable, the
effectiveness of any Shelf Registration Statement, such additional Securities and

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the Registrable Securities to which this Agreement relates shall be treated together as one
class for purposes of determining whether the consent or approval of Holders of a specified
percentage of Registrable Securities has been obtained.

     “Participating Broker-Dealers” shall have the meaning set forth in Section 4(a) hereof.

     “Partnership” shall have the meaning set forth in the preamble and shall also include the
Partnership’s successors.

     “Person” shall mean an individual, partnership, limited liability company, corporation, trust
or unincorporated organization, or a government or agency or political subdivision thereof.

     “Prospectus” shall mean the prospectus included in, or deemed a part of, a Registration
Statement, including any preliminary prospectus, and any such prospectus as amended or supplemented
by any prospectus supplement, including a prospectus supplement with respect to the terms of the
offering of any portion of the Registrable Securities covered by a Shelf Registration Statement,
and by all other amendments and supplements to such prospectus, and in each case including any
document incorporated by reference therein.

     “Purchase Agreement” shall have the meaning set forth in the recital.

     “Registrable Securities” shall mean the Securities; provided that the Securities shall cease
to be Registrable Securities on the earliest of (i) when a Registration Statement with respect to
such Securities has been declared effective by the SEC and such Securities have been exchanged or
disposed of pursuant to such Registration Statement, (ii) if an Exchange Offer is completed, on or
after the Exchange Date with respect to the Holders that are eligible to participate in the
Exchange Offer but fail to tender such Securities in the Exchange Offer, (iii) the date that is two
years from the original issue date of the Securities or (iv) when such Securities cease to be
outstanding.

     “Registration Expenses” shall mean any and all expenses incident to performance of or
compliance by the Calumet Parties with this Agreement, including without limitation: (i) all SEC,
stock exchange or Financial Industry Regulatory Authority, Inc. registration and filing fees, (ii)
all fees and expenses incurred in connection with compliance with state securities or blue sky laws
(including reasonable fees and disbursements of counsel for any Underwriters or Holders in
connection with blue sky qualification of any Exchange Securities or Registrable Securities), (iii)
all expenses of any Persons in preparing or assisting in preparing, word processing, printing and
distributing any Registration Statement, any Prospectus and any amendments or supplements thereto,
any underwriting agreements, securities sales agreements or other similar agreements and any other
documents relating to the performance of and compliance with this Agreement, (iv) all rating agency
fees, (v) all fees and disbursements relating to the qualification of the Indenture under
applicable securities laws, including the Trust Indenture Act, (vi) the fees and disbursements of
the Trustee and its counsel, (vii) the fees and disbursements of counsel for the Calumet Parties
and, in the case of a Shelf Registration Statement, the fees and disbursements of one counsel for
the Holders (which counsel shall be selected by the Majority Holders and which counsel may also be
counsel for the Initial Purchasers) and (viii) the fees and disbursements of the independent public
accountants of the Calumet Parties, including the expenses of any special

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audits or “comfort” letters required by or incident to the performance of and compliance with
this Agreement, but excluding fees and expenses of counsel to the Underwriters (other than fees and
expenses set forth in clause (ii) above) or the Holders and underwriting discounts and commissions,
brokerage commissions and transfer taxes, if any, relating to the sale or disposition of
Registrable Securities by a Holder.

     “Registration Statement” shall mean any registration statement filed under the Securities Act
of the Calumet Parties that covers any of the Exchange Securities or Registrable Securities
pursuant to the provisions of this Agreement and all amendments and supplements to any such
registration statement, including post-effective amendments, in each case including the Prospectus
contained therein, all exhibits thereto and any document incorporated by reference therein.

     “SEC” shall mean the United States Securities and Exchange Commission.

     “Securities” shall have the meaning set forth in the recital.

     “Securities Act” shall mean the Securities Act of 1933, as amended from time to time.

     “Shelf Effectiveness Period” shall have the meaning set forth in Section 2(b) hereof.

     “Shelf Registration” shall mean a registration effected pursuant to Section 2(b) hereof.

     “Shelf Registration Statement” shall mean a “shelf” registration statement of the Calumet
Parties that covers all or a portion of the Registrable Securities (but no other securities unless
approved by the Holders of a majority of the Registrable Securities to be covered by such Shelf
Registration Statement) on an appropriate form under Rule 415 under the Securities Act, or any
similar rule that may be adopted by the SEC, and all amendments and supplements to such
registration statement, including post-effective amendments, in each case including the Prospectus
contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by
reference therein.

     “Shelf Request” shall have the meaning set forth in Section 2(b) hereof.

     “Subsidiary Guarantees” shall mean the guarantees of the Securities and Exchange Securities by
the Guarantors under the Indenture.

     “Staff” shall mean the staff of the SEC.

     “Target Registration Date” shall have the meaning set forth in Section 2(d) hereof.

     “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time to
time.

     “Trustee” shall mean the trustee with respect to the Securities under the Indenture.

     “Underwriter” shall have the meaning set forth in Section 3(e) hereof.

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     “Underwritten Offering” shall mean an offering in which Registrable Securities are sold to an
Underwriter for reoffering to the public.

     2. Registration Under the Securities Act. (a) To the extent not prohibited by any
applicable law or applicable interpretations of the Staff, the Calumet Parties shall use their
reasonable best efforts to (i) cause to be filed an Exchange Offer Registration Statement covering
an offer to the Holders to exchange all the Registrable Securities for Exchange Securities, (ii)
cause such Exchange Offer Registration Statement be declared effective by the SEC by April 20, 2012
and (iii) have such Registration Statement remain effective until 180 days after the last Exchange
Date for use by one or more Participating Broker-Dealers. The Calumet Parties shall commence the
Exchange Offer promptly after the Exchange Offer Registration Statement is declared effective by
the SEC and use their reasonable best efforts to complete the Exchange Offer not later than 60 days
after such effective date.

     The Calumet Parties shall commence the Exchange Offer by mailing the related Prospectus,
appropriate letters of transmittal and other accompanying documents to each Holder stating, in
addition to such other disclosures as are required by applicable law, substantially the following:

	 	(i)	 	that the Exchange Offer is being made pursuant to this Agreement and that all Registrable
Securities validly tendered and not properly withdrawn will be accepted for exchange;

	 	(ii)	 	the dates of acceptance for exchange (which shall be a period of at least 20 Business Days
from the date such notice is mailed) (the “Exchange Dates”);

	 	(iii)	 	that any Registrable Security not tendered will remain outstanding and continue to accrue
interest but will not retain any rights under this Agreement;

	 	(iv)	 	that any Holder electing to have a Registrable Security exchanged pursuant to the Exchange
Offer will be required to (x) in the case a Holder electing to exchange a Registrable Security
in global form, to comply with the applicable procedures of DTC for book-entry tenders, and,
(y) in the case of a Holder electing to exchange a Registrable Security in certificated form,
to surrender such Registrable Security, together with the appropriate letters of transmittal,
to the institution and at the address (located in the Borough of Manhattan, The City of New
York) and in the manner specified in the notice, prior to the close of business on the last
Exchange Date; and

	 	(v)	 	that any Holder will be entitled to withdraw its election, not later than the close of
business on the last Exchange Date, by (x) in the case of a Holder withdrawing its election to
exchange a Registrable Security in global form, complying with the applicable procedures of
DTC for withdrawal of tenders, and, (y) in the case of a Holder withdrawing its election to
exchange a Registrable Security in certificated form, sending to the institution and at the
address (located in the Borough of Manhattan, The City of New York) specified in the notice, a
telegram, telex, facsimile transmission or letter setting forth the name of such Holder, the
principal amount of Registrable Securities delivered for exchange and a statement that such
Holder is withdrawing its election to have such Registrable Securities exchanged.

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     As a condition to participating in the Exchange Offer, a Holder will be required to represent
to the Calumet Parties that (i) any Exchange Securities to be received by it will be acquired in
the ordinary course of its business, (ii) at the time of the commencement of the Exchange Offer it
has no arrangement or understanding with any Person to participate in the distribution (within the
meaning of the Securities Act) of the Exchange Securities in violation of the provisions of the
Securities Act, (iii) it is not an “affiliate” (within the meaning of Rule 405 under the Securities
Act) of any of the Calumet Parties and (iv) if such Holder is a broker-dealer that will receive
Exchange Securities for its own account in exchange for Registrable Securities that were acquired
as a result of market-making or other trading activities, then such Holder will deliver a
Prospectus (or, to the extent permitted by law, make available a Prospectus to purchasers) in
connection with any resale of such Exchange Securities.

     As soon as practicable after the last Exchange Date, the Calumet Parties shall:

	(i)	 	accept for exchange Registrable Securities or portions thereof validly tendered and not
properly withdrawn pursuant to the Exchange Offer; and

	(ii)	 	deliver, or cause to be delivered, to the Trustee for cancellation all Registrable Securities
or portions thereof so accepted for exchange by the Issuers and issue, and cause the Trustee
to promptly authenticate and deliver to each Holder, Exchange Securities equal in principal
amount to the principal amount of the Registrable Securities surrendered by such Holder.

     The Calumet Parties shall use their reasonable best efforts to complete the Exchange Offer as
provided above and shall comply with the applicable requirements of the Securities Act, the
Exchange Act and other applicable laws and regulations in connection with the Exchange Offer. The
Exchange Offer shall not be subject to any conditions, other than that the Exchange Offer does not
violate any applicable law or applicable interpretations of the Staff.

     (b) In the event that (i) the Calumet Parties determine that the Exchange Offer Registration
provided for in Section 2(a) above is not available or may not be completed as soon as practicable
after the last Exchange Date because it would violate any applicable law or applicable
interpretations of the Staff, (ii) the Exchange Offer is not for any other reason completed by
April 20, 2012, or (iii) any Initial Purchaser shall so request (a “Shelf Request”) in connection
with any offer or sale of Registrable Securities that are ineligible to be exchanged in the
Exchange Offer, the Calumet Parties shall use their reasonable best efforts to cause to be filed as
soon as practicable after such determination, date or Shelf Request, as the case may be, a Shelf
Registration Statement providing for the sale of all the Registrable Securities by the Holders
thereof and to cause such Shelf Registration Statement to be declared effective by the SEC.

     In the event that the Calumet Parties are required to file a Shelf Registration Statement
pursuant to clause (iii) of the preceding sentence, the Calumet Parties shall use their reasonable
best efforts to file and have declared effective by the SEC both an Exchange Offer Registration
Statement pursuant to Section 2(a) with respect to all Registrable Securities and a Shelf
Registration Statement (which may be a combined Registration Statement with the Exchange

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Offer Registration Statement) with respect to offers and sales of Registrable Securities held
by the Initial Purchasers after completion of the Exchange Offer.

     The Calumet Parties agree to use their reasonable best efforts to keep the Shelf Registration
Statement continuously effective for one year or such shorter period that will terminate when all
the Registrable Securities covered by the Shelf Registration Statement have been sold pursuant to
the Shelf Registration Statement (the “Shelf Effectiveness Period”). The Calumet Parties further
agree to supplement or amend the Shelf Registration Statement and the related Prospectus if
required by the rules, regulations or instructions applicable to the registration form used by the
Calumet Parties for such Shelf Registration Statement or by the Securities Act or by any other
rules and regulations thereunder for shelf registration or if reasonably requested by a Holder of
Registrable Securities with respect to information relating to such Holder, and to use their
reasonable best efforts to cause any such amendment to be declared effective, if required, and such
Shelf Registration Statement and Prospectus to become usable as soon as thereafter practicable.
The Calumet Parties agree to furnish to the Holders of Registrable Securities copies of any such
supplement or amendment promptly after its being used or filed with the SEC.

     (c) The Calumet Parties shall pay all Registration Expenses in connection with any
registration pursuant to Section 2(a) or Section 2(b) hereof. Each Holder shall pay all
underwriting discounts and commissions, brokerage commissions and transfer taxes, if any, relating
to the sale or disposition of such Holder’s Registrable Securities pursuant to the Shelf
Registration Statement.

     (d) An Exchange Offer Registration Statement pursuant to Section 2(a) or a Shelf Registration
Statement pursuant to Section 2(b) hereof will not be deemed to have become effective unless it has
been declared effective by the SEC.

     In the event that (i) either the Exchange Offer is not completed or the Shelf Registration
Statement, if required pursuant to Section 2(b)(i) or 2(b)(ii) hereof, is not declared effective on
or prior to April 20, 2012 (the “Target Registration Date”), or (ii) the Company receives a
Shelf Request pursuant to Section 2(b)(iii), and the Shelf Registration Statement required to be
filed thereby is not declared effective by the SEC by the later of (x) September 21, 2011 or (y) 90
days after the delivery of such Shelf Request (such later date, the “Shelf Additional Interest
Date”), then the interest rate on the Registrable Securities will be increased by (A) 0.25% per
annum for the first 90-day period immediately following the Target Registration Date or the Shelf
Additional Interest Date, as applicable, and (B) an additional 0.25% per annum with respect to each
subsequent 90-day period, in each case until the Exchange Offer is completed or the Shelf
Registration Statement, if required hereby, is declared effective by the SEC or the Securities no
longer qualify as Registrable Securities, up to a maximum of 1.00% per annum of additional
interest.

     If the Shelf Registration Statement, if required hereby, has been declared effective by the
SEC and thereafter either ceases to be effective or the Prospectus contained therein ceases to be
usable at any time during the Shelf Effectiveness Period, and such failure to remain effective or
usable exists for more than 45 days (whether or not consecutive) in any 12-month period, then the
interest rate on the Registrable Securities will be increased by (i) 0.25% per annum

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commencing on the 45th day in such 12-month period and (ii) an additional 0.25% per annum with
respect to each subsequent 90-day period (whether or not consecutive) and ending on such date that
the Shelf Registration Statement has again been declared effective by the SEC or the Prospectus
again becomes usable, up to a maximum of 1.00% per annum of additional interest.

     (e) Any additional interest paid in accordance with this Section 2 shall be liquidated damages
and shall be the sole and exclusive remedy available to Holders due a failure by the Calumet
Parties to comply with their obligations under Section 2(a) and Section 2(b).

     3. Registration Procedures. (a) In connection with their obligations pursuant to
Section 2(a) and Section 2(b) hereof, the Calumet Parties shall as expeditiously as possible:

     (i) prepare and file with the SEC a Registration Statement on the appropriate form under the
Securities Act, which form (x) shall be selected by the Calumet Parties, (y) shall, in the case of
a Shelf Registration, be available for the sale of the Registrable Securities by the Holders
thereof and (z) shall comply as to form in all material respects with the requirements of the
applicable form and include all financial statements required by the SEC to be filed therewith; and
use their reasonable best efforts to cause such Registration Statement to be declared effective by
the SEC and remain effective for the applicable period in accordance with Section 2 hereof;

     (ii) prepare and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary to keep such Registration Statement effective for the
applicable period in accordance with Section 2 hereof and cause each Prospectus to be supplemented
by any required prospectus supplement and, as so supplemented, to be filed pursuant to Rule 424
under the Securities Act; and keep each Prospectus current during the period described in Section
4(3) of and Rule 174 under the Securities Act that is applicable to transactions by brokers or
dealers with respect to the Registrable Securities or Exchange Securities;

     (iii) in the case of a Shelf Registration, furnish to each Holder of Registrable Securities,
to counsel for the Initial Purchasers, to counsel for such Holders and to each Underwriter of an
Underwritten Offering of Registrable Securities, if any, without charge, as many copies of each
Prospectus or preliminary prospectus, and any amendment or supplement thereto, as such Holder,
counsel or Underwriter may reasonably request in order to facilitate the sale or other disposition
of the Registrable Securities thereunder; and the Calumet Parties consent to the use of such
Prospectus, preliminary prospectus and any amendment or supplement thereto in accordance with
applicable law by each of the Holders of Registrable Securities and any such Underwriters in
connection with the offering and sale of the Registrable Securities covered by and in the manner
described in such Prospectus, preliminary prospectus or any amendment or supplement thereto in
accordance with applicable law;

     (iv) use their reasonable best efforts to register or qualify the Registrable Securities under
all applicable state securities or blue sky laws of such jurisdictions in the United States as any
Holder of Registrable Securities covered by a Registration Statement shall reasonably request in
writing by the time the applicable Registration Statement is declared effective by the SEC;
cooperate with such Holders in connection with any filings required to be made with the Financial
Industry Regulatory Authority, Inc.; and do any and all other acts and things that may

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be reasonably necessary or advisable to enable each Holder to complete the disposition in each
such jurisdiction of the Registrable Securities owned by such Holder; provided that none of
the Calumet Parties shall be required to (1) qualify as a foreign corporation or other entity or as
a dealer in securities in any such jurisdiction where it would not otherwise be required to so
qualify, (2) file any general consent to service of process in any such jurisdiction or (3) subject
itself to taxation in any such jurisdiction if it is not so subject;

     (v) notify counsel for the Initial Purchasers and, in the case of a Shelf Registration, notify
each Holder of Registrable Securities and counsel for such Holders promptly and, if requested by
any such Holder or counsel, confirm such advice in writing (1) when a Registration Statement has
become effective, when any post-effective amendment thereto has been filed and becomes effective
and when any amendment or supplement to the Prospectus has been filed, (2) of any request by the
SEC or any state securities authority for amendments and supplements to a Registration Statement or
Prospectus or for additional information after the Registration Statement has become effective, (3)
of the issuance by the SEC or any state securities authority of any stop order suspending the
effectiveness of a Registration Statement or the initiation of any proceedings for that purpose,
including the receipt by the Calumet Parties of any notice of objection of the SEC to the use of a
Shelf Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2)
under the Securities Act, (4) if, between the applicable effective date of a Shelf Registration
Statement and the closing of any sale of Registrable Securities covered thereby, the
representations and warranties of any of the Calumet Parties contained in any underwriting
agreement, securities sales agreement or other similar agreement, if any, relating to an offering
of such Registrable Securities cease to be true and correct in all material respects or if any of
the Calumet Parties receives any notification with respect to the suspension of the qualification
of the Registrable Securities for sale in any jurisdiction or the initiation of any proceeding for
such purpose, (5) of the happening of any event during the period a Registration Statement is
effective that makes any statement made in such Registration Statement or the related Prospectus
untrue in any material respect or that requires the making of any changes in such Registration
Statement or Prospectus in order to make the statements therein not misleading and (6) of any
determination by any of the Calumet Parties that a post-effective amendment to a Registration
Statement or any amendment or supplement to the Prospectus would be appropriate;

     (vi) use their reasonable best efforts to obtain the withdrawal of any order suspending the
effectiveness of a Registration Statement or, in the case of a Shelf Registration, the resolution
of any objection of the SEC pursuant to Rule 401(g)(2), including by filing an amendment to such
Shelf Registration Statement on the proper form, at the earliest possible moment and provide
immediate notice to each Holder of the withdrawal of any such order or such resolution;

     (vii) in the case of a Shelf Registration, furnish to each Holder of Registrable Securities,
without charge, at least one conformed copy of each Registration Statement and any post-effective
amendment thereto (without any documents incorporated therein by reference or exhibits thereto,
unless requested); provided, however, that any such document available on the SEC’s EDGAR database
shall satisfy such obligation.

     (viii) in the case of a Shelf Registration, cooperate with the Holders of Registrable
Securities in certificated form to facilitate the timely preparation and delivery of certificates

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representing Registrable Securities to be sold and not bearing any restrictive legends and
enable such Registrable Securities to be issued in such denominations and registered in such names
(consistent with the provisions of the Indenture) as such Holders may reasonably request at least
two Business Days prior to the closing of any sale of Registrable Securities in certificated form;

     (ix) in the case of a Shelf Registration, upon the occurrence of any event contemplated by
Section 3(a)(v)(5) hereof, use their reasonable best efforts to prepare and file with the SEC a
supplement or post-effective amendment to such Shelf Registration Statement or the related
Prospectus or any document incorporated therein by reference or file any other required document so
that, as thereafter delivered (or, to the extent permitted by law, made available) to purchasers of
the Registrable Securities, such Prospectus will not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; and the Calumet Parties shall notify the
Holders of Registrable Securities to suspend use of the Prospectus as promptly as practicable after
the occurrence of such an event, and such Holders hereby agree to suspend use of the Prospectus
until the Calumet Parties have amended or supplemented the Prospectus to correct such misstatement
or omission;

     (x) a reasonable time prior to the filing of any Registration Statement, any Prospectus, any
amendment to a Registration Statement or amendment or supplement to a Prospectus or of any document
that is to be incorporated by reference into a Registration Statement or a Prospectus after initial
filing of a Registration Statement, provide copies of such document to the Initial Purchasers and
their counsel (and, in the case of a Shelf Registration Statement, to the Holders of Registrable
Securities and their counsel) and make such of the representatives of the Calumet Parties as shall
be reasonably requested by the Initial Purchasers or their counsel (and, in the case of a Shelf
Registration Statement, the Holders of Registrable Securities or their counsel) available for
discussion of such document; and the Calumet Parties shall not, at any time after initial filing of
a Registration Statement, use or file any Prospectus, any amendment of or supplement to a
Registration Statement or a Prospectus, or any document that is to be incorporated by reference
into a Registration Statement or a Prospectus, of which the Initial Purchasers and their counsel
(and, in the case of a Shelf Registration Statement, the Holders of Registrable Securities and
their counsel) shall not have previously been advised and furnished a copy or to which the Initial
Purchasers or their counsel (and, in the case of a Shelf Registration Statement, the Holders of
Registrable Securities or their counsel) shall reasonably object; provided, that this clause shall
not apply to any filing by the Partnership of any Annual Report on Form 10-K, Quarterly Report on
Form 10-Q or Current Report on Form 8-K with respect to matters unrelated to the Securities and the
offering or exchange therefor;

     (xi) obtain a CUSIP number for all Exchange Securities or Registrable Securities, as the case
may be, not later than the initial effective date of a Registration Statement;

     (xii) cause the Indenture to be qualified under the Trust Indenture Act in connection with the
registration of the Exchange Securities or Registrable Securities, as the case may be; cooperate
with the Trustee and the Holders to effect such changes to the Indenture as may be required for the
Indenture to be so qualified in accordance with the terms of the Trust Indenture Act; and execute,
and use their reasonable best efforts to cause the Trustee to execute, all

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documents as may be required to effect such changes and all other forms and documents required
to be filed with the SEC to enable the Indenture to be so qualified in a timely manner;

     (xiii) in the case of a Shelf Registration, make available for inspection by a representative
(an “Inspector”) of the Holders of the Registrable Securities, any Underwriter participating in any
disposition pursuant to such Shelf Registration Statement, any attorneys and accountants designated
by a majority of the Holders of Registrable Securities to be included in such Shelf Registration
and any attorneys and accountants designated by such Underwriter, at reasonable times and in a
reasonable manner, all pertinent financial and other records, documents and properties of the
Calumet Parties and their subsidiaries, and cause the respective officers, directors and employees
of the Calumet Parties to supply all information reasonably requested by any such Inspector,
Underwriter, attorney or accountant in connection with a Shelf Registration Statement, in each case
as is customary for “due diligence” examinations in the context of underwritten offerings;
provided that if any such information is identified by the Calumet Parties as being
confidential or proprietary, each Person receiving such information shall take such actions as are
reasonably necessary to protect the confidentiality of such information to the extent such action
is otherwise not inconsistent with, an impairment of or in derogation of the rights and interests
of any Inspector, Holder or Underwriter;

     (xiv) in the case of a Shelf Registration, use their reasonable best efforts to cause all
Registrable Securities to be listed on any securities exchange or any automated quotation system on
which similar securities issued or guaranteed by the Calumet Parties are then listed if requested
by the Majority Holders, to the extent such Registrable Securities satisfy applicable listing
requirements;

     (xv) if reasonably requested by any Holder of Registrable Securities covered by a Shelf
Registration Statement, promptly include in a Prospectus supplement or post-effective amendment
such information with respect to such Holder as such Holder reasonably requests to be included
therein and make all required filings of such Prospectus supplement or such post-effective
amendment as soon as the Calumet Parties have received notification of the matters to be so
included in such filing;

     (xvi) in the case of a Shelf Registration, enter into such customary agreements and take all
such other actions in connection therewith (including those requested by the Holders of a majority
in principal amount of the Registrable Securities covered by the Shelf Registration Statement) in
order to expedite or facilitate the disposition of such Registrable Securities including, but not
limited to, an Underwritten Offering and in such connection, (1) to the extent possible, make such
representations and warranties to the Holders and any Underwriters of such Registrable Securities
with respect to the business of the Calumet Parties and their subsidiaries and the Registration
Statement, Prospectus and documents incorporated by reference or deemed incorporated by reference,
if any, in each case, in form, substance and scope as are customarily made by issuers to
underwriters in underwritten offerings and confirm the same if and when requested, (2) obtain
opinions of counsel to the Calumet Parties (which counsel and opinions, in form, scope and
substance, shall be reasonably satisfactory to the Holders and such Underwriters and their
respective counsel) addressed to each selling Holder (to the extent such Holder has advised the
Issuers that such Holder may have a “due diligence” defense under Section 11 of the Securities Act)
and Underwriter of Registrable Securities, covering the matters customarily

11

 

covered in opinions requested in underwritten offerings, (3) obtain “comfort” letters from the
independent registered public accounting firm of the Calumet Parties (and, if necessary, any other
certified public accountant of any subsidiary of the Calumet Parties, or of any business acquired
by the Calumet Parties for which financial statements and financial data are or are required to be
included in the Registration Statement) addressed to each selling Holder (to the extent permitted
by applicable professional standards) and Underwriter of Registrable Securities, such letters to be
in customary form and covering matters of the type customarily covered in “comfort” letters in
connection with underwritten offerings, including but not limited to financial information
contained in any preliminary prospectus or Prospectus and (4) deliver such documents and
certificates as may be reasonably requested by the Holders of a majority in principal amount of the
Registrable Securities being sold or the Underwriters, and which are customarily delivered in
underwritten offerings, to evidence the continued validity of the representations and warranties of
the Calumet Parties made pursuant to clause (1) above and to evidence compliance with any customary
conditions contained in an underwriting agreement; and

     (xvii) so long as any Registrable Securities remain outstanding, cause each Additional
Guarantor upon the creation or acquisition by the Issuers of such Additional Guarantor, to execute
a joinder agreement in the form attached hereto as Annex A and to deliver such joinder agreement,
together with an opinion of counsel as to the enforceability thereof against such entity, to the
Initial Purchasers no later than five Business Days following the execution thereof.

     (b) In the case of a Shelf Registration Statement, the Issuers may require each Holder of
Registrable Securities to furnish to the Issuers such information regarding such Holder and the
proposed disposition by such Holder of such Registrable Securities as the Calumet Parties may from
time to time reasonably request in writing.

     (c) In the case of a Shelf Registration Statement, each Holder of Registrable Securities
covered in such Shelf Registration Statement agrees that, upon receipt of any notice from the
Calumet Parties of the happening of any event of the kind described in Section 3(a)(v)(3) or
3(a)(v)(5) hereof, such Holder will forthwith discontinue disposition of Registrable Securities
pursuant to the Shelf Registration Statement until such Holder’s receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 3(a)(ix) hereof and, if so directed by
the Calumet Parties, such Holder will deliver to the Calumet Parties all copies in its possession,
other than permanent file copies then in such Holder’s possession, of the Prospectus covering such
Registrable Securities that is current at the time of receipt of such notice.

     (d) If the Calumet Parties shall give any notice to suspend the disposition of Registrable
Securities pursuant to a Registration Statement, the Calumet Parties shall extend the period during
which such Registration Statement shall be maintained effective pursuant to this Agreement by the
number of days during the period from and including the date of the giving of such notice to and
including the date when the Holders of such Registrable Securities shall have received copies of
the supplemented or amended Prospectus necessary to resume such dispositions. The Calumet Parties
may give any such notice only twice during any 365-day period and any such suspensions shall not
exceed 30 days for each suspension and there shall not be more than two suspensions in effect
during any 365-day period.

12

 

     (e) The Holders of Registrable Securities covered by a Shelf Registration Statement who desire
to do so may sell such Registrable Securities in an Underwritten Offering. In any such
Underwritten Offering, the investment bank or investment banks and manager or managers (each an
“Underwriter”) that will administer the offering will be selected by the Holders of a majority in
principal amount of the Registrable Securities included in such offering; provided that, with
respect to any Underwriter other than Merrill Lynch, such selections shall be subject to the
approval of the Partnership, which approval shall not be unreasonably withheld.

     4. Participation of Broker-Dealers in Exchange Offer. (a) The Staff has taken the
position that any broker-dealer that receives Exchange Securities for its own account in the
Exchange Offer in exchange for Securities that were acquired by such broker-dealer as a result of
market-making or other trading activities (a “Participating Broker-Dealer”) may be deemed to be an
“underwriter” within the meaning of the Securities Act and must deliver a prospectus meeting the
requirements of the Securities Act in connection with any resale of such Exchange Securities.

     The Calumet Parties understand that it is the Staff’s position that if the Prospectus
contained in the Exchange Offer Registration Statement includes a plan of distribution containing a
statement to the above effect and the means by which Participating Broker-Dealers may resell the
Exchange Securities, without naming the Participating Broker-Dealers or specifying the amount of
Exchange Securities owned by them, such Prospectus may be delivered by Participating Broker-Dealers
(or, to the extent permitted by law, made available to purchasers) to satisfy their prospectus
delivery obligation under the Securities Act in connection with resales of Exchange Securities for
their own accounts, so long as the Prospectus otherwise meets the requirements of the Securities
Act.

     (b) In light of the above, and notwithstanding the other provisions of this Agreement, the
Calumet Parties agree to amend or supplement the Prospectus contained in the Exchange Offer
Registration Statement for a period of up to 180 days after the last Exchange Date (as such period
may be extended pursuant to Section 3(d) of this Agreement), in order to expedite or facilitate the
disposition of any Exchange Securities by Participating Broker-Dealers consistent with the
positions of the Staff recited in Section 4(a) above. The Calumet Parties further agree that
Participating Broker-Dealers shall be authorized to deliver such Prospectus (or, to the extent
permitted by law, make available) during such period in connection with the resales contemplated by
this Section 4.

     (c) The Initial Purchasers shall have no liability to any of the Calumet Parties or any Holder
with respect to any request that they may make pursuant to Section 4(b) above.

     5. Indemnification and Contribution. (a) Each of the Calumet Parties, jointly and
severally, agree to indemnify and hold harmless each Initial Purchaser and each Holder, their
respective affiliates, directors and officers and each Person, if any, who controls any Initial
Purchaser or any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act, from and against any and all losses, claims, damages and liabilities (including,
without limitation, legal fees and other expenses incurred in connection with any suit, action or
proceeding or any claim asserted, as such fees and expenses are incurred), joint or several, that
arise out of, or are based upon, (1) any untrue statement or alleged untrue statement of a material

13

 

fact contained in any Registration Statement or any omission or alleged omission to state
therein a material fact required to be stated therein or necessary in order to make the statements
therein not misleading, or (2) any untrue statement or alleged untrue statement of a material fact
contained in any Prospectus, any free writing prospectus (as defined in Rule 405 under the
Securities Act (“Free Writing Prospectus”) used in violation of this Agreement or any “issuer
information” (“Issuer Information”) filed or required to be filed pursuant to Rule 433(d) under the
Securities Act, or any omission or alleged omission to state therein a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading, in each case except insofar as such losses, claims, damages or liabilities arise
out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission
made in reliance upon and in conformity with any information relating to any Initial Purchaser or
information relating to any Holder furnished to the Issuers in writing through Merrill Lynch or any
selling Holder, respectively, expressly for use therein. In connection with any Underwritten
Offering permitted by Section 3, the Calumet Parties, jointly and severally, will also indemnify
the Underwriters, if any, selling brokers, dealers and similar securities industry professionals
participating in the distribution, their respective affiliates and each Person who controls such
Persons (within the meaning of the Securities Act and the Exchange Act) to the same extent as
provided above with respect to the indemnification of the Holders, if requested in connection with
any Registration Statement, any Prospectus, any Free Writing Prospectus or any Issuer Information.

     (b) Each Holder agrees, severally and not jointly, to indemnify and hold harmless the Calumet
Parties, the Initial Purchasers and the other selling Holders, the directors of the Calumet
Parties, each officer of the Calumet Parties who signed the Registration Statement and each Person,
if any, who controls the Calumet Parties, any Initial Purchaser and any other selling Holder within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act to the same
extent as the indemnity set forth in paragraph (a) above, but only with respect to any losses,
claims, damages or liabilities that arise out of, or are based upon, any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in conformity with any
information relating to such Holder furnished to the Calumet Parties in writing by such Holder
expressly for use in any Registration Statement and any Prospectus.

     (c) If any suit, action, proceeding (including any governmental or regulatory investigation),
claim or demand shall be brought or asserted against any Person in respect of which indemnification
may be sought pursuant to either paragraph (a) or (b) above, such Person (the “Indemnified Person”)
shall promptly notify the Person against whom such indemnification may be sought (the “Indemnifying
Person”) in writing; provided that the failure to notify the Indemnifying Person shall not
relieve it from any liability that it may have under this Section 5 except to the extent that it
has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such
failure; and provided, further, that the failure to notify the Indemnifying Person
shall not relieve it from any liability that it may have to an Indemnified Person otherwise than
under this Section 5. If any such proceeding shall be brought or asserted against an Indemnified
Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall
retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified
Person and any others entitled to indemnification pursuant to this Section 5 that the Indemnifying
Person may designate in such proceeding and shall pay the fees and expenses of such proceeding and
shall pay the fees and expenses of such counsel related to such proceeding,

14

 

as incurred. In any such proceeding, any Indemnified Person shall have the right to retain
its own counsel, but the fees and expenses of such counsel shall be at the expense of such
Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have
mutually agreed to the contrary; (ii) the Indemnifying Person has failed within a reasonable time
to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified Person
shall have reasonably concluded that there may be legal defenses available to it that are different
from or in addition to those available to the Indemnifying Person; or (iv) the named parties in any
such proceeding (including any impleaded parties) include both the Indemnifying Person and the
Indemnified Person and representation of both parties by the same counsel would be inappropriate
due to actual or potential differing interests between them. It is understood and agreed that the
Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same
jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to
any local counsel) for all Indemnified Persons, and that all such fees and expenses shall be
reimbursed as they are incurred. Any such separate firm (x) for any Initial Purchaser, its
affiliates, directors and officers and any control Persons of such Initial Purchaser shall be
designated in writing by Merrill Lynch, (y) for any Holder, its directors and officers and any
control Persons of such Holder shall be designated in writing by the Majority Holders and (z) in
all other cases shall be designated in writing by the Partnership. The Indemnifying Person shall
not be liable for any settlement of any proceeding effected without its written consent, but if
settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying
Person agrees to indemnify each Indemnified Person from and against any loss or liability by reason
of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an
Indemnified Person shall have requested that an Indemnifying Person reimburse the Indemnified
Person for fees and expenses of counsel as contemplated by this paragraph, the Indemnifying Person
shall be liable for any settlement of any proceeding effected without its written consent if (i)
such settlement is entered into more than 30 days after receipt by the Indemnifying Person of such
request and (ii) the Indemnifying Person shall not have reimbursed the Indemnified Person in
accordance with such request prior to the date of such settlement. No Indemnifying Person shall,
without the written consent of the Indemnified Person, effect any settlement of any pending or
threatened proceeding in respect of which any Indemnified Person is or could have been a party and
indemnification could have been sought hereunder by such Indemnified Person, unless such settlement
(A) includes an unconditional release of such Indemnified Person, in form and substance reasonably
satisfactory to such Indemnified Person, from all liability on claims that are the subject matter
of such proceeding and (B) does not include any statement as to or any admission of fault,
culpability or a failure to act by or on behalf of any Indemnified Person.

     (d) If the indemnification provided for in paragraphs (a) and (b) above is unavailable to an
Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities
referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying
such Indemnified Person thereunder, shall contribute to the amount paid or payable by such
Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such
proportion as is appropriate to reflect the relative benefits received by the Calumet Parties from
the offering of the Securities and the Exchange Securities, on the one hand, and by the Holders
from receiving Securities or Exchange Securities registered under the Securities Act, on the other
hand, or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause (i)
but also the relative fault of the Calumet Parties on the one hand and the Holders on the other in

15

 

connection with the statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The relative fault of the
Calumet Parties on the one hand and the Holders on the other shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the
Calumet Parties or by the Holders and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.

     (e) The Calumet Parties and the Holders agree that it would not be just and equitable if
contribution pursuant to this Section 5 were determined by pro rata allocation
(even if the Holders were treated as one entity for such purpose) or by any other method of
allocation that does not take account of the equitable considerations referred to in paragraph (d)
above. The amount paid or payable by an Indemnified Person as a result of the losses, claims,
damages and liabilities referred to in paragraph (d) above shall be deemed to include, subject to
the limitations set forth above, any legal or other expenses incurred by such Indemnified Person in
connection with any such action or claim. Notwithstanding the provisions of this Section 5, in no
event shall a Holder be required to contribute any amount in excess of the amount by which the
total price at which the Securities or Exchange Securities sold by such Holder exceeds the amount
of any damages that such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent misrepresentation. The Holders’
obligations to contribute pursuant to this Section 5 are several and not joint.

     (f) The remedies provided for in this Section 5 are not exclusive and shall not limit any
rights or remedies that may otherwise be available to any Indemnified Person at law or in equity.

     (g) The indemnity and contribution provisions contained in this Section 5 shall remain
operative and in full force and effect regardless of (i) any termination of this Agreement, (ii)
any investigation made by or on behalf of the Initial Purchasers or any Holder or any Person
controlling any Initial Purchaser or any Holder, or by or on behalf of the Calumet Parties or the
officers or directors of or any Person controlling any of the Calumet Parties, (iii) acceptance of
any of the Exchange Securities and (iv) any sale of Registrable Securities pursuant to a Shelf
Registration Statement.

     6. General.

     (a) No Inconsistent Agreements. The Calumet Parties represent, warrant and agree that (i)
the rights granted to the Holders hereunder do not in any way conflict with and are not
inconsistent with the rights granted to the holders of any other outstanding securities issued or
guaranteed by any of the Calumet Parties under any other agreement and (ii) none of the Calumet
Parties has entered into, or on or after the date of this Agreement will enter into, any agreement
that is inconsistent with the rights granted to the Holders of Registrable Securities in this
Agreement or otherwise conflicts with the provisions hereof.

16

 

     (b) Amendments and Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given unless the Calumet Parties have obtained the written
consent of Holders of at least a majority in aggregate principal amount of the outstanding
Registrable Securities affected by such amendment, modification, supplement, waiver or consent;
provided that no amendment, modification, supplement, waiver or consent to any departure
from the provisions of Section 5 hereof shall be effective as against any Holder of Registrable
Securities unless consented to in writing by such Holder. Any amendments, modifications,
supplements, waivers or consents pursuant to this Section 6(b) shall be by a writing executed by
each of the parties hereto.

     (c) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand-delivery, registered first-class mail, telex, telecopier, or any courier
guaranteeing overnight delivery (i) if to a Holder, at the most current address given by such
Holder to the Issuers by means of a notice given in accordance with the provisions of this Section
6(c), which address initially is, with respect to the Initial Purchasers, the address set forth in
the Purchase Agreement; (ii) if to the Calumet Parties, initially at the Issuers’ address set forth
in the Purchase Agreement and thereafter at such other address, notice of which is given in
accordance with the provisions of this Section 6(c); and (iii) to such other persons at their
respective addresses as provided in the Purchase Agreement and thereafter at such other address,
notice of which is given in accordance with the provisions of this Section 6(c). All such notices
and communications shall be deemed to have been duly given: at the time delivered by hand, if
personally delivered; five Business Days after being deposited in the mail, postage prepaid, if
mailed; when receipt is acknowledged, if telecopied; and on the next Business Day if timely
delivered to an air courier guaranteeing overnight delivery. Copies of all such notices, demands
or other communications shall be concurrently delivered by the Person giving the same to the
Trustee, at the address specified in the Indenture.

     (d) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors, assigns and transferees of each of the parties, including, without limitation and
without the need for an express assignment, subsequent Holders; provided that nothing
herein shall be deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Purchase Agreement or the Indenture. If any transferee
of any Holder shall acquire Registrable Securities in any manner, whether by operation of law or
otherwise, such Registrable Securities shall be held subject to all the terms of this Agreement,
and by taking and holding such Registrable Securities such Person shall be conclusively deemed to
have agreed to be bound by and to perform all of the terms and provisions of this Agreement and
such Person shall be entitled to receive the benefits hereof. The Initial Purchasers (in their
capacity as Initial Purchasers) shall have no liability or obligation to the Calumet Parties with
respect to any failure by a Holder to comply with, or any breach by any Holder of, any of the
obligations of such Holder under this Agreement.

     (e) Third Party Beneficiaries. Each Holder shall be a third party beneficiary to the
agreements made hereunder between the Calumet Parties, on the one hand, and the Initial Purchasers,
on the other hand, and shall have the right to enforce such agreements directly to the extent it
deems such enforcement necessary or advisable to protect its rights or the rights of other Holders
hereunder.

17

 

     (f) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement.

     (g) Headings. The headings in this Agreement are for convenience of reference only, are not a
part of this Agreement and shall not limit or otherwise affect the meaning hereof.

     (h) Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.

     (i) Entire Agreement; Severability. This Agreement contains the entire agreement between the
parties relating to the subject matter hereof and supersedes all oral statements and prior writings
with respect thereto. If any term, provision, covenant or restriction contained in this Agreement
is held by a court of competent jurisdiction to be invalid, void or unenforceable or against public
policy, the remainder of the terms, provisions, covenants and restrictions contained herein shall
remain in full force and effect and shall in no way be affected, impaired or invalidated. The
Calumet Parties and the Initial Purchasers shall endeavor in good faith negotiations to replace the
invalid, void or unenforceable provisions with valid provisions the economic effect of which comes
as close as possible to that of the invalid, void or unenforceable provisions.

[Signature pages follow.]

18

 

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

	 	 	 	 	 
	 	

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

 	 
	 	By:  	Calumet GP, LLC, its general partner
 	 
	 

					
	 	By:  	/s/
R. Patrick Murray, II 	 
	 	 	Name:  	R. Patrick Murray, II 	 
	 	 	Title:  	Vice President, Chief Financial Officer and
Secretary 	 
	 

					
	 	CALUMET FINANCE CORP.

 	 
	 	By:  	/s/
R. Patrick Murray, II 	 
	 	 	Name:  	
R. Patrick Murray, II 	 
	 	 	Title:  	Vice President, Chief Financial Officer and
Secretary 	 
	 
	 	
CALUMET OPERATING, LLC

 	 

					
	 	By:  	Calumet Specialty Products Partners, L.P.,
 	 
	 	 	its sole member 	 
	 

					
	 	By:  	Calumet GP, LLC,
 	 
	 	 	its General Partner 	 
	 

					
	 	By:  	/s/
R. Patrick Murray, II 	 
	 	 	Name:  	
R. Patrick Murray, II 	 
	 	 	Title:  	Vice President, Chief Financial Officer and
Secretary 	 

[Signature Page to Registration Rights Agreement]

19

 

	 	 	 	 	 
	 	CALUMET LP GP, LLC

 	 

					
	 	By:  	Calumet Operating, LLC,
 	 
	 	 	its sole member 	 
	 
	 	By:  	           Calumet Specialty Products Partners, L.P.,
 	 
	 	 	its sole member 	 
	 
	 	By:  	           Calumet GP, LLC,
 	 
	 	 	its General Partner 	 
	 

					
	 	By:  	/s/
R. Patrick Murray, II
 	 
	 	 	Name:  	
R. Patrick Murray, II 	 
	 	 	Title:  	Vice President, Chief Financial Officer and
Secretary 	 

	 	 	 	 	 
	 	CALUMET LUBRICANTS CO., LIMITED PARTNERSHIP

 	 

					
	 	By:  	Calumet LP GP, LLC,
 	 
	 	 	its general partner 	 
	 
	 	By:  	           Calumet Operating, LLC,
 	 
	 	 	its sole member 	 
	 
	 	By:  	           Calumet Specialty Products Partners, L.P.,
 	 
	 	 	its sole member 	 
	 
	 	By:  	           Calumet GP, LLC,
 	 
	 	 	its General Partner 	 
	 

					
	 	By:  	/s/
R. Patrick Murray, II
 	 
	 	 	Name:  	
R. Patrick Murray, II 	 
	 	 	Title:  	Vice President, Chief Financial Officer and
Secretary 	 
	 

					
	 	CALUMET SALES COMPANY INCORPORATED
 	 

	 
					
	 	By: 	/s/
R. Patrick Murray, II 	 
	 	 	Name:  	
R. Patrick Murray, II 	 
	 	 	Title:  	Vice President, Chief Financial Officer and
Secretary 	 

[Signature Page to Registration Rights Agreement]

20

 

	 	 	 	 	 
	 	CALUMET SHREVEPORT, LLC
 	 

	 	 	 	 	 
	 	By:  	Calumet Lubricants Co., Limited Partnership,
 	 
	 	 	its sole member 	 
	 
	 	By:  	          Calumet LP GP, LLC,
 	 
	 	 	its general partner 	 
	 
	 	By:  	          Calumet Operating, LLC,
 	 
	 	 	its sole member 	 
	 
	 	By:  	          Calumet Specialty Products Partners, L.P.,
 	 
	 	 	its sole member 	 
	 
	 	By:  	          Calumet GP, LLC,
 	 
	 	 	its General Partner 	 
	 

					
	 	By:  	/s/
R. Patrick Murray, II
 	 
	 	 	Name:  	
R. Patrick Murray, II 	 
	 	 	Title:  	Vice President, Chief Financial Officer and
Secretary 	 

	 	 	 	 	 
	 	CALUMET SHREVEPORT FUELS, LLC

CALUMET SHREVEPORT LUBRICANTS & WAXES, LLC

 	 

					
	 	By:  	Calumet Shreveport, LLC,
 	 
	 	 	its sole member 	 
	 
	 	By:  	             Calumet Lubricants Co., Limited Partnership,
 	 
	 	 	its sole member 	 
	 
	 	By:  	             Calumet LP GP, LLC,
 	 
	 	 	its general partner 	 
	 
	 	By:  	             Calumet Operating, LLC,
 	 
	 	 	its sole member 	 
	 
	 	By:  	             Calumet Specialty Products Partners, L.P.,
 	 
	 	 	its sole member 	 
	 
	 	By:  	             Calumet GP, LLC,
 	 
	 	 	its General Partner 	 
	 

					
	 	By:  	/s/
R. Patrick Murray, II
 	 
	 	 	Name:  	
R. Patrick Murray, II 	 
	 	 	Title:  	Vice President, Chief Financial Officer and
Secretary 	 

[Signature Page to Registration Rights Agreement]

21

 

	 	 	 	 	 
	 	CALUMET PENRECO, LLC

 	 

					
	 	By:  	Calumet Lubricants Co., Limited Partnership,
 	 
	 	 	its sole member 	 
	 
	 	By:  	          Calumet LP GP, LLC,
 	 
	 	 	its general partner 	 
	 
	 	By:  	          Calumet Operating, LLC,
 	 
	 	 	its sole member 	 
	 
	 	By:  	          Calumet Specialty Products Partners, L.P.,
 	 
	 	 	its sole member 	 
	 
	 	By:  	          Calumet GP, LLC,
 	 
	 	 	its General Partner 	 
	 

					
	 	By:  	/s/
R. Patrick Murray, II
 	 
	 	 	Name:  	
R. Patrick Murray, II 	 
	 	 	Title:  	Vice President, Chief Financial Officer and
Secretary 	 

[Signature Page to Registration Rights Agreement]

22

 

Confirmed and accepted as of the date first above written:

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

GOLDMAN, SACHS & CO.

For themselves and on behalf of the
several Initial Purchasers

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

	 	 	 	 	 
	 	By:  	/s/
J. Lex Maultsby
 	 
	 	 	Name:  	
J. Lex Maultsby 	 
	 	 	Title:  	Managing Director 	 

GOLDMAN, SACHS & CO.

	 	 	 	 	 
	 	By:  	/s/
Goldman, Sachs & Co.
 	 
	 	 	Goldman, Sachs & Co. 	 
	 	 	 	 

[Signature Page to Registration Rights Agreement]

23

 

Annex A

Form of Joinder Agreement

     The undersigned hereby absolutely, unconditionally and irrevocably agrees as a Guarantor (as
defined in the Registration Rights Agreement, dated as of April 21, 2011 by and among Calumet
Specialty Products Partners, L.P., a Delaware limited partnership (the “Partnership”), Calumet
Finance Corp., a Delaware corporation, the guarantors party thereto, and Merrill Lynch, Pierce,
Fenner & Smith, Incorporated, on behalf of itself and the other Initial Purchasers) to be bound by
the terms and provisions of such Registration Rights Agreement.

     IN WITNESS WHEREOF, the undersigned has executed this agreement as of ______________, 20     .

	 	 	 	 	 
	 	[NAME]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

24exv10w1

Exhibit 10.1

Confidential Treatment Requested by Broadcom Corporation — #1     

Reference Number: [      ]                                Account Number: [     ]

	 	 	 

	Morgan Stanley

	 	MORGAN STANLEY & CO. INCORPORATED
	 

	 	1585 BROADWAY
	 

	 	NEW YORK, NY 10036-8293
	 

	 	(212) 761-4000

February 1, 2011

Fixed Dollar Collared Accelerated Share Repurchase Transaction

Broadcom Corporation

5300 California Avenue

Irvine, CA 92617-3038

Dear Sir/Madam:

The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions
of the Transaction entered into between Morgan Stanley & Co. Incorporated (“MSCO”) and Broadcom
Corporation (the “Issuer”) on the Trade Date specified below (the “Transaction”). This
confirmation constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified
below.

The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (as
published by the International Swaps and Derivatives Association, Inc. (“ISDA”)) (the “Equity
Definitions”) are incorporated into this Confirmation. In the event of any inconsistency between
the Equity Definitions and this Confirmation, this Confirmation will govern. Any reference to a
currency shall have the meaning contained in Annex A to the 1998 ISDA FX and Currency Option
Definitions, as published by ISDA.

1. This Confirmation evidences a complete and binding agreement between MSCO and Issuer as to the
terms of the Transaction to which this Confirmation relates. This Confirmation shall be subject to
an agreement (the “Agreement”) in the form of the 2002 ISDA Master Agreement (the “ISDA Form”) as
if MSCO and Issuer had executed an agreement in such form without any Schedule. For the avoidance
of doubt, the Transaction shall be the only transaction under the Agreement.

2. The terms of the particular Transaction to which this Confirmation relates are as follows:

	 	 	 

	GENERAL TERMS:
	 	 
	 
	 	 
	Trade Date:

	 	As specified in Schedule I
	 
	 	 
	Buyer:

	 	Issuer
	 
	 	 
	Seller:

	 	MSCO
	 
	 	 
	Shares:

	 	Common Stock of Issuer (Ticker: “BRCM”)
	 
	 	 
	Number of Shares:

	 	The number of Shares delivered in accordance with
Physical Settlement below.
	 
	 	 
	Tranches:

	 	The Transaction will be divided into multiple Tranches, each

 

 

Confidential Treatment Requested by Broadcom Corporation — #2

	 	 	 

	 

	 	with the terms set forth in this Confirmation, and
in particular with the Prepayment Amount, Observation
Dates, the Scheduled Valuation Date and the Lock-Out
Date set forth in Schedule I. The payments and
deliveries to be made upon settlement of the Transaction
will be determined separately for each Tranche as if
each Tranche were a separate Transaction under the
Agreement.
	 
	 	 
	Forward Price:

	 	A price per Share (as determined by the Calculation
Agent) equal to (i) Mean of 10b-18 VWAPs minus (ii) the
Discount Percentage (as specified in Schedule I)
multiplied by the Mean of 10b-18 VWAPs; provided,
however, that if the Forward Price would otherwise be: (A) greater than the Forward Cap Price, the Forward
Price shall equal the Forward Cap Price (as specified in
Schedule I), or (B) less than the Forward Floor Price,
the Forward Price shall equal the Forward Floor Price
(as specified in Schedule I)
	 
	 	 
	10b-18 VWAP:

	 	For each Observation Date that is a Trading Day
during the Calculation Period or the Initial Hedge
Period, a price per share (as determined by the
Calculation Agent) equal to the volume-weighted
average price of the Rule 10b-18 eligible trades in
the Shares for the entirety of such Trading Day as
determined by reference to the screen entitled
“BRCM.UQ <Equity> AQR SEC” or any successor
page as reported by Bloomberg L.P. (without regard
to pre-open or after hours trading outside of any
regular trading session for such Trading Day or
block trades (as defined in Rule 10b-18(b)(5) of the
Securities Exchange Act of 1934 as amended (the
“Exchange Act”)) on such Trading Day).
	 
	 	 
	Mean of 10b-18 VWAPs:

	 	The arithmetic mean of the 10b-18 VWAP on each
Observation Date that is a Trading Day during the
Calculation Period.
	 
	 	 
	Observation Dates:

	 	As specified in Schedule I.
	 
	 	 
	Calculation Period:

	 	The period from and including the first Observation
Date that is a Trading Day that occurs after the
Initial Hedge Completion Date to but excluding the
relevant Valuation Date; provided, however, that if
the Valuation Date is the Scheduled Valuation Date,
then the Valuation Date shall be included in the
Calculation Period.
	 
	 	 
	Trading Day:

	 	Any Exchange Business Day that is not a Disrupted Day.
	 
	 	 
	Initial Shares:

	 	As specified in Schedule I
	 
	 	 
	Initial Share Delivery Date:

	 	The First Exchange Business Day following the
Trade Date. On the Initial Share Delivery
Date, Seller shall deliver a number of Shares
equal to the Initial Shares to Buyer in
accordance with Section 9.4 of the Equity
Definitions, with

 

 

Confidential Treatment Requested by Broadcom Corporation — #3

	 	 	 

	 

	 	the Initial Share Delivery
Date deemed to be a “Settlement Date” for
purposes of such Section 9.4.
	 
	 	 
	Initial Hedge Period:

	 	The period from and including the first Observation
Date that is a Trading Day that occurs after the
Trade Date (the “Initial Hedge Start Date”) to and
including the Initial Hedge Completion Date
	 
	 	 
	Initial Hedge Completion Date:

	 	The Observation Date on which MSCO
completes its initial hedge, as determined
by MSCO in its good faith and commercially
reasonable discretion, but in no event
shall the Initial Hedge Completion Date
occur later than the [*] Trading
Day after the Initial Hedge Start Date.
	 
	 	 
	 

	 	On or prior to the Exchange Business Day
following the Initial Hedge Completion Date
for any Tranche, MSCO shall provide Issuer
with written notice specifying the first
day of the Calculation Period and the
Initial Hedge Period Reference Price, the
Forward Cap Price and the Forward Floor
Price (with such prices expressed in USD)
for such Tranche.
	 
	 	 
	Initial Hedge Period Reference Price:

	 	An amount in USD equal to the
arithmetic mean (not a weighted
average) of the 10b-18 VWAP on each
Observation Date that is a Trading
Day from, and including, the first
Observation Date that is a Trading
Day immediately following the Trade
Date to, and including, the Initial
Hedge Completion Date.
	 
	 	 
	Additional Shares:

	 	A number of Shares equal to (i) the Prepayment Amount
(as defined below) divided by the Forward Cap Price (as
specified in Schedule I) minus (ii) the Initial Shares
delivered to Issuer by MSCO.
	 
	 	 
	Additional Share Delivery Date:

	 	One Exchange Business Day following the
Initial Hedge Completion Date. On the
Additional Share Delivery Date, Seller
shall deliver a number of shares equal to
the Additional Shares to Buyer in
accordance with Section 9.4 of the Equity
Definitions, with the Additional Share
Delivery Date deemed to be a “Settlement
Date” for purposes of such Section 9.4.
	 
	 	 
	Prepayment:

	 	Applicable
	 
	 	 
	Prepayment Amount:

	 	As specified in Schedule I
	 
	 	 
	Commission Amount:

	 	As specified in Schedule I
	 
	 	 
	Adjustment Amount:

	 	As specified in Schedule I
	 
	 	 
	Structuring Fee:

	 	As specified in Schedule I
	 
	 	 
	Prepayment Date:

	 	The First Exchange Business Day following the Trade Date.
On the Prepayment Date, Buyer shall pay to Seller the
Prepayment Amount, the Commission Amount, the

 

			
	*	 	This information has been omitted based on
a request for confidential treatment. The omitted portions have been
separately filed with the Securities and Exchange Commission.

 

 

Confidential Treatment Requested by Broadcom Corporation — #4

	 	 	 

	 

	 	Adjustment Amount and the Structuring Fee.
	 
	 	 
	Exchange:

	 	NASDAQ GS
	 
	 	 
	Related Exchange:

	 	The primary exchange on which options or futures on the
relevant Shares are traded.
	 
	 	 
	Market Disruption Event:

	 	The definition of “Market Disruption Event” in
Section 6.3(a) of the Equity Definitions is
hereby amended by replacing the words “at any
time during the one-hour period that ends at the
relevant Valuation Time” in the third line
thereof with the words “at any time on any
Observation Date during the Calculation Period or
Initial Hedge Period or” after the word
“material”.
	 
	 	 
	 

	 	Notwithstanding anything to the contrary in the
Equity Definitions, if any Observation Date in
the Calculation Period or the Initial Hedge
Period is a Disrupted Day, the Calculation Agent
shall have the option in its good faith and
commercially reasonable discretion either (i) to
determine the weighting of each Rule 10b-18
eligible transaction in the Shares on the
relevant Disrupted Day using its commercially
reasonable judgment for purposes of calculating
the Forward Price, as applicable, (ii) to elect
to extend the Calculation Period or the Initial
Hedge Period by a number of Observation Dates
equal to the number of Disrupted Days during the
Calculation Period or the Initial Hedge Period or
(iii) to suspend the Calculation Period or the
Initial Hedge Period, as appropriate, until the
circumstances giving rise to such suspension have
ceased, in either case, by delivering notice in
writing to Issuer of (x) the circumstances giving
rise to such Disrupted Day and (y) any such
weighting, extension or suspension as soon as
reasonably practicable after the occurrence of
such Disrupted Day and, with respect to a
Disrupted Day arising with respect to any
Requirements (as defined in Section 10), shall
subsequently notify Issuer on the day Seller
believes that the circumstances giving rise to
such Disrupted Day have changed. For the
avoidance of doubt, (I) if Calculation Agent
elects the option described in clause (i) above,
then such Disrupted Day shall be deemed to be a
Trading Day for purposes of calculating the
Forward Price or the Initial Hedge Period
Reference Price, as the case may be and (II) any
adjustments made by Calculation Agent as a result
of any Disrupted Day shall be Fair Value
Adjustments (as defined below).
	 
	 	 
	VALUATION:
	 	 
	 
	 	 
	Valuation Time:

	 	The Scheduled Closing Time on the relevant Exchange
	 
	 	 
	Valuation Date:

	 	The earlier of (i) the Scheduled Valuation Date (as
specified in Schedule I) and (ii) any date after the
Lock-Out Date (as specified in Schedule I) specified by
MSCO to Issuer by 9:00pm EST on such date as a Valuation
Date, in each case,

 

 

Confidential Treatment Requested by Broadcom Corporation — #5

	 	 	 

	 

	 	subject to extension in accordance
with “Market Disruption Event” above or Section 9 or
Section 10 below; provided, however, that if a Valuation
Date occurs pursuant to clause (ii) above, then (A) the
Calculation Period for this Transaction (or portion
thereof) shall be deemed to end as of the Trading Day
immediately preceding the relevant Valuation Date and (B)
MSCO shall have the right to specify a Valuation Date with
respect to any portion of this Transaction as it selects
(any such Valuation Date on a portion of this Transaction
for less than the full Prepayment Amount, a “Partial
Acceleration Date”); provided, however, that MSCO can only
elect to declare a Partial Acceleration Date if the
portion of the transaction subject to the Partial
Acceleration Date is in an increment of USD25,000,000.
	 
	 	 
	 

	 	In the case of a Partial Acceleration Date, MSCO shall
specify in its notice to Issuer designating a Valuation
Date in connection with a Partial Acceleration Date the
percentage of the Prepayment Amount that is subject to
such Valuation Date and Calculation Agent shall adjust all
terms of this Transaction as it deems reasonable in a good
faith and commercially reasonable manner in order to take
into account the occurrence of any Partial Acceleration
Date (including cumulative adjustments to take into
account all Partial Acceleration Dates that occur during
the term of this Transaction).
	 
	 	 
	 

	 	On each Valuation Date, Calculation Agent shall calculate
the Settlement Amount.
	 
	 	 
	SETTLEMENT TERMS:
	 	 
	 
	 	 
	Physical Settlement:

	 	Applicable.
	 
	 	 
	 

	 	On the relevant Settlement Date, Seller shall deliver
to Buyer a number of Shares equal to (a) (i) the
Prepayment Amount divided by (ii) the Forward Price
as determined on the relevant Valuation Date, minus
(b) the Initial Shares minus (c) the Additional
Shares, rounded to the nearest whole number of Shares
(such number of Shares, the “Settlement Amount”).
	 
	 	 
	Settlement Currency:

	 	USD
	 
	 	 
	Settlement Date:

	 	Three Exchange Business Days after the relevant
Valuation Date, or if such date is not a Clearance
System Business Day or if there is a Settlement
Disruption Event on such day, the immediately
succeeding Clearance System Business Day on which
there is no Settlement Disruption Event.
	 
	 	 
	SHARE ADJUSTMENTS:
	 	 
	 
	 	 
	Potential Adjustment Event:

	 	Notwithstanding anything to the contrary in
Section 11.2(e) of the Equity Definitions,
each of (i) an Extraordinary Dividend,

 

 

Confidential Treatment Requested by Broadcom Corporation — #6

	 	 	 

	 

	 	(ii) any issuance of Shares in connection with a
Compensatory Plan (as defined in Section
11(a)), or (iii) any repurchases of Shares
hereunder or under any other plan or
transaction of Issuer shall not constitute
a Potential Adjustment Event.
	 
	 	 
	Extraordinary Dividend:

	 	Any dividend or distribution on the Shares
with an ex-dividend date occurring during
the period from and including the Trade
Date to and including the Valuation Date
(other than any dividend or distribution of
the type described in Section 11.2(e)(i) or
Section 11.2(e)(ii)(A) or (B) of the Equity
Definitions) (a “Dividend”) that is either
(i) a non-regularly scheduled Dividend or
(ii) the amount or value of which (as
determined by the Calculation Agent)
exceeds the Ordinary Dividend Amount.
	 
	 	 
	Ordinary Dividend Amount:

	 	For any calendar quarter, USD 0.09
	 
	 	 
	Agreement Regarding Dividends:

	 	Notwithstanding any other provision of this
Confirmation, the Definitions, or the
Agreement to the contrary, in calculating
any adjustment pursuant to Article 11 of
the Equity Definitions or any amount
payable in respect of any termination or
cancellation of the Transaction pursuant to
Article 12 of the Equity Definitions or
Section 6 of the Agreement, the Calculation
Agent shall not take into account changes
to any dividends since the Trade Date. For
the avoidance of doubt, if an Early
Termination Date occurs in respect of the
Transaction, the amount payable pursuant to
Section 6 of the Agreement in respect of
such Early Termination Date shall be
determined without regard to the difference
between actual dividends declared
(including Extraordinary Dividends) and
expected dividends as of the Trade Date.
	 
	 	 
	Method of Adjustment:

	 	Calculation Agent Adjustment; provided that if
Seller suspends trading in the Shares for all or any
portion of a Trading Day within the Calculation
Period, the suspension shall be treated as a
Potential Adjustment Event subject to Calculation
Agent Adjustment. In the case of a suspension
arising as a result of any Requirements (as defined
in Section 10), the Calculation Agent shall make
such adjustments prior to the period of suspension,
if it is practical to do so. Otherwise, and in all
cases of a suspension as contemplated under “Market
Disruption Event” above, the Calculation Agent shall
make such adjustments promptly following the period
of suspension.
	 
	 	 
	 

	 	With respect to any Potential Adjustment Event, all
adjustments made by the Calculation Agent pursuant
to “Calculation Agent Adjustment” shall be Fair
Value Adjustments. “Fair Value Adjustments” means,
in respect of any event, adjustments to any relevant
terms of the Transaction as necessary to preserve as
nearly as practicable the fair value of such
Transaction to MSCO prior to such

 

 

Confidential Treatment Requested by Broadcom Corporation — #7

	 	 	 

	 

	 	event, where the
Calculation Agent, in making Fair Value Adjustments,
shall take into account any increase or decrease in
such fair value to MSCO as a result of the relevant
event, based on stock price volatility, interest
rates, strike price, stock loan rate, liquidity and
VWAP averaging dates.
	 
	 	 
	EXTRAORDINARY EVENTS:
	 	 
	 
	 	 
	Consequences of Merger Events:
	 	 
	 
	 	 
	Share-for-Share:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	Share-for-Other:

	 	Cancellation and Payment on that portion of the Other
Consideration that consists of cash; Modified Calculation
Agent Adjustment on the remainder of the Other
Consideration
	 
	 	 
	Share-for-Combined:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	Tender Offer:

	 	Applicable
	 
	 	 
	CONSEQUENCES OF TENDER OFFERS:
	 	 
	 
	 	 
	Share-for-Share:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	Share-for-Other:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	Share-for-Combined:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	For purposes of this Transaction, the definition of Merger Date in Section 12.1(c) shall be amended
to read, “Merger Date shall mean the Announcement Date.” For purposes of this Transaction, the
definition of Tender Offer Date in Section 12.1(e) shall be amended to read, “Tender Offer Date
shall mean the Announcement Date.”
	 
	 	 
	Composition of Combined Consideration:

	 	Applicable
	 
	 	 
	Nationalization, Insolvency or Delisting:

	 	Cancellation and Payment (Calculation Agent
Determination)
	 
	 	 
	With respect to any consequences of an Extraordinary Event to which Modified Calculation Agent
Adjustment applies, any adjustments made by the Calculation Agent pursuant to “Modified Calculation
Agent Adjustment” shall be Fair Value Adjustments.
	 
	 	 
	Additional Disruption Events:
	 	 
	 
	 	 
	Change in Law:

	 	Applicable; provided that the parties agree that, for the
avoidance of doubt, for purposes of Section 12.9(a)(ii) of
the Equity Definitions, “any applicable law or regulation”
shall include the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010, any rules and regulations
promulgated thereunder and any similar law or regulation,
without regard to Section 739 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act of 2010 or any similar
legal certainty provision in any legislation enacted, or
rule or

 

 

Confidential Treatment Requested by Broadcom Corporation — #8

	 	 	 

	 

	 	regulation promulgated and the consequences
specified in Section 12.9(b)(i) of the Equity Definitions
shall apply to any Change in Law arising from any such act,
rule or regulation”.
	 
	 	 
	Failure to Deliver:

	 	Applicable
	 
	 	 
	Insolvency Filing:

	 	Applicable
	 
	 	 
	Hedging Disruption:

	 	Applicable
	 
	 	 
	Increased Cost of Hedging:

	 	Not Applicable
	 
	 	 
	Loss of Stock Borrow: 

Maximum Stock Loan Rate:

	 	Applicable

[*]bps
	 
	 	 
	Increased Cost of Stock Borrow:

	 	Applicable
	Initial Stock Loan Rate:

	 	25bps
	 
	 	 
	Determining Party:

	 	For all Extraordinary Events, MSCO; provided that, upon
receipt of written request from Issuer, Determining
Party shall promptly (but in no event later than within
seven Scheduled Trading Days from the receipt of such
request) provide Issuer with a written explanation
describing in reasonable detail any determination made
by it (including any quotations, market data or
information from internal sources used in making such
determinations, but without disclosing MSCO’s
proprietary models).
	 
	 	 
	Hedging Party:

	 	For all Additional Disruption Events, MSCO
	 
	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 
	AGREEMENTS AND ACKNOWLEDGMENTS:
	 	 
	 
	 	 
	Regarding Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgments:

	 	Applicable
	 
	 	 
	3. Calculation Agent:

	 	MSCO; provided that, upon receipt of written
request from Issuer, Calculation Agent shall
promptly (but in no event later than within seven
Scheduled Trading Days from the receipt of such
request) provide Issuer with a written explanation
describing in reasonable detail any calculation,
adjustment or determination made by it (including
any quotations, market data or information from
internal sources used in making such calculations,
adjustments or determinations, but without
disclosing MSCO’s proprietary models).
	 
	 	 
	4. Account Details:

	 	To be provided.

5. (a) Nationalization, Insolvency or Delisting. The words “the Transaction will be
cancelled,” in the first line of Section 12.6(c)(ii) are replaced with the words “MSCO
will have the right to cancel this Transaction,”.

 

			
	*	 	This information has been omitted based on a request for confidential treatment.
The omitted portions have been separately filed with the Securities and Exchange Commission.

 

 

Confidential Treatment Requested by Broadcom Corporation — #9

     (b) Additional Termination Event. The declaration of any Extraordinary Dividend by
Issuer during the period from and including the Trade Date to but excluding the final Valuation
Date shall constitute an Additional Termination Event with this Transaction as the only “Affected
Transaction” and Issuer as the sole “Affected Party”.

     (c) For the avoidance of doubt, this Transaction shall be deemed to be a “Share Forward
Transaction” for purposes of the Equity Definitions; provided, however, that in
Section 9.2(a)(iii) of the Equity Definitions the words “the Excess Dividend Amount, if any, and”
shall be deleted.

     (d) The proviso appearing in parentheses beginning on the fifth row from the end of Section
11.2(c) is removed.

6. Certain Payments and Deliveries by MSCO. Notwithstanding anything to the contrary herein, or
in the Equity Definitions, if at any time (i) an Early Termination Date occurs and MSCO would be
required to make a payment pursuant to Sections 6(d) and 6(e) of the Agreement, (ii) a Tender Offer
occurs and MSCO would be required to make a payment pursuant to Sections 12.3 and 12.7 of the
Equity Definitions, (iii) a Merger Event occurs and MSCO would be required to make a payment
pursuant to Sections 12.2 and 12.7 of the Equity Definitions (iv) an Additional Disruption Event
occurs and MSCO would be required to make a payment pursuant to Sections 12.8 and 12.9 of the
Equity Definitions or (v) a Nationalization, Insolvency or Delisting occurs and MSCO would be
required to make a payment pursuant to Sections 12.6 and 12.7 of the Equity Definitions, then
Issuer shall have the option to require MSCO to make such payment in cash or to settle such payment
amount in Shares (or, in the case of a Merger Event, a number of units, each comprising the number
or amount of the securities or property that a hypothetical holder of one Share would receive in
such Merger Event (each such unit, an “Alternative Delivery Unit” and, the securities or property
comprising such unit, “Alternative Delivery Property”)) (any such payment described in Sections
6(i), (ii), (iii), (iv) or (v) above, an “MSCO Payment Amount”). If Issuer elects for MSCO to
settle an MSCO Payment Amount in Shares or Alternative Delivery Property, then on the date such
MSCO Payment Amount is due, a Settlement Balance shall be established with an initial balance equal
to the MSCO Payment Amount. On such date, MSCO shall commence purchasing Shares or Alternative
Delivery Property for delivery to Issuer. At the end of each Trading Day on which MSCO purchases
Shares or Alternative Delivery Property pursuant to this Section 6, MSCO shall reduce the
Settlement Balance by the amount, determined in a good faith and commercially reasonable manner,
paid by MSCO to purchase the Shares or Alternative Delivery Property purchased on such Trading Day.
MSCO shall deliver any Shares or Alternative Delivery Property purchased on a Trading Day to
Issuer on the third Exchange Business Day following the relevant Trading Day. MSCO shall continue
purchasing Shares or Alternative Delivery Property until the Settlement Balance has been reduced to
zero.

7. Certain Payments and Deliveries by Issuer. (a) Notwithstanding anything to the contrary
herein, or in the Equity Definitions, if at any time (i) an Early Termination Date occurs and
Issuer would be required to make a payment pursuant to Sections 6(d) and 6(e) of the Agreement,
(ii) a Tender Offer occurs and Issuer would be required to make a payment pursuant to Sections 12.3
and 12.7 of the Equity Definitions, (iii) a Merger Event occurs and Issuer would be required to
make a payment pursuant to Sections 12.2 and 12.7 of the Equity Definitions, (iv) an Additional
Disruption Event occurs and Issuer would be required to make a payment pursuant to Sections 12.8
and 12.9 of the Equity Definitions or (v) a Nationalization, Insolvency or Delisting occurs and
Issuer would be required to make a payment pursuant to Sections 12.6 and 12.7 of the Equity
Definitions (any such payment described in Sections 7(i), (ii), (iii), (iv) or (v) above, an “Early Settlement Payment”), then Issuer shall have the option, in lieu of making such cash
payment, to settle its payment obligations under Sections 7(i), (ii), (iii), (iv) or (v) above in
Shares or Alternative Delivery Property (such Shares or Alternative Delivery Property, the “Early
Settlement Shares”). In order to elect to deliver Early Settlement Shares, (i) Issuer must notify
MSCO of its election by no later than 4 p.m. EST on the date that is three Exchange Business Days
before the date that the Early Settlement Payment is due, (ii) must specify whether such Early
Settlement Shares are to be sold by means of a registered offering or by means of a private
placement and (iii) the conditions described in Section 8 below must be satisfied on each day Early
Settlement Shares are to be sold by Seller in connection with Buyer’s election to deliver Early
Settlement Shares in connection with the settlement of an Early Settlement Payment.

 

 

Confidential Treatment Requested by Broadcom Corporation — #10

     (b) For the avoidance of doubt, nothing in this Confirmation shall be interpreted as
requiring Issuer to deliver cash in respect of the settlement of the Transaction contemplated by
this Confirmation following payment by Issuer of the relevant Prepayment Amount, except in
circumstances where the required cash settlement thereof is permitted for classification of the
contract as equity by ASC 815-40, Derivatives and Hedging — Contracts in Entity’s Own Equity as in
effect on the Trade Date (including, without limitation, where Issuer so elects to deliver cash or
fails timely to elect to deliver Shares or Early Settlement Shares in respect of the settlement of
the Transaction).

8. Conditions to Delivery of Early Settlement Shares.

Issuer may only deliver Early Settlement Shares and Make-Whole Shares (as defined below) subject to
satisfaction of the following conditions:

     (a) If Issuer timely elects to deliver Early Settlement Shares and Make-Whole Shares by means
of a registered offering, the following provisions shall apply:

     (i) On the later of (A) the Trading Day following the Issuer’s election to deliver
Early Settlement Shares and any Make-Whole Shares by means of a registered offering (the
“Registration Notice Date”), and (B) the date on which the Registration Statement is
declared effective by the SEC or becomes effective (the “Registered Share Delivery Date”),
the Issuer shall deliver to MSCO a number of Early Settlement Shares equal to the quotient
of (I) the relevant Early Settlement Payment divided by (II) the market
value per Share on the date of such delivery as reasonably determined by the Calculation
Agent.

     (ii) Promptly following the Registration Notice Date, the Issuer shall file with the
SEC a registration statement (“Registration Statement”) covering the public resale by MSCO
of the Early Settlement Shares and any Make-Whole Shares (collectively, the “Registered
Securities”) on a continuous or delayed basis pursuant to Rule 415 (or any similar or
successor rule), if available, under the Securities Act; provided that no such filing shall
be required pursuant to this paragraph (ii) if the Issuer shall have filed a similar
registration statement with unused capacity at least equal to the relevant Early Settlement
Payment and such registration statement has become effective or been declared effective by
the SEC on or prior to the Registration Notice Date and no stop order is in effect with
respect to such registration statement as of the Registration Notice Date. The Issuer
shall use its commercially reasonable efforts to file an automatic shelf registration
statement or have the Registration Statement declared effective by the SEC as promptly as
possible.

     (iii) Promptly following the Registration Notice Date, the Issuer shall afford MSCO a
reasonable opportunity to conduct a due diligence investigation with respect to the Issuer
customary in scope for underwritten offerings of equity securities of similar size by
similar issuers (including, without limitation, the availability of senior management to
respond to questions regarding the business and financial condition of the Issuer and the
right to have made available to MSCO for inspection all financial and other records,
pertinent corporate documents and other information reasonably requested by MSCO), and MSCO
shall be satisfied in all material respects with the results of such due diligence
investigation of the Issuer. For the avoidance of doubt, the Issuer shall not have the
right to deliver Shares pursuant to this Section 8(a) (and the conditions to delivery of
Early Settlement Shares specified in this Section 8(a) shall not be satisfied) until MSCO
is satisfied in all material respects with the results of such due diligence investigation
of the Issuer.

     (iv) From the effectiveness of the Registration Statement until all Registered
Securities have been sold by MSCO, the Issuer shall, at the request of MSCO, make available
to MSCO a printed
prospectus relating to the Registered Securities in form and substance (including,
without limitation, any sections describing the plan of distribution) reasonably
satisfactory to MSCO (a “Prospectus”,

 

 

Confidential Treatment Requested by Broadcom Corporation — #11

which term shall include any prospectus supplement
thereto), in such quantities as MSCO shall reasonably request.

     (v) The Issuer shall use its commercially reasonable best efforts to prevent the
issuance of any stop order suspending the effectiveness of the Registration Statement or of
any order preventing or suspending the use of any Prospectus and, if any such order is
issued, to obtain the lifting thereof as soon thereafter as is possible. If the
Registration Statement, the Prospectus or any document incorporated therein by reference
contains a misstatement of a material fact or omits to state a material fact required to be
stated therein or necessary to make any statement therein not misleading, the Issuer shall
as promptly as practicable file any required document and prepare and furnish to MSCO a
reasonable number of copies of such supplement or amendment thereto as may be necessary so
that the Prospectus, as thereafter delivered to the purchasers of the Registered Securities
will not contain a misstatement of a material fact or omit to state a material fact
required to be stated therein or necessary to make any statement therein not misleading.

     (vi) On or prior to the Registered Share Delivery Date, the Issuer shall enter into an
agreement (a “Transfer Agreement”) with MSCO (or any affiliate of MSCO designated by MSCO)
in connection with the public resale of the Registered Securities, substantially similar to
underwriting agreements customary for underwritten offerings of equity securities of
similar size by similar issuers, in form and substance satisfactory to MSCO (or such
affiliate), which Transfer Agreement shall (without limitation of the foregoing):

     (A) contain provisions substantially similar to those contained in such
underwriting agreements relating to the indemnification of, and contribution in
connection with the liability of, MSCO and its affiliates,

     (B) provide for delivery to MSCO (or such affiliate) of customary opinions
(including, without limitation, accounting comfort letters, opinions relating to
the due authorization, valid issuance and fully paid and non-assessable nature of
the Registered Securities and the lack of material misstatements and omissions in
the Registration Statement, the Prospectus and the Issuer’s filings under the
Exchange Act of 1934, as amended and modified (the “Exchange Act”)); and

     (C) provide for the payment by the Issuer of all fees and expenses in
connection with such resale, including all registration costs and all fees and
expenses of counsel for MSCO (or such affiliate), but such Transfer Agreement shall
not provide for any underwriter discount or commission.

     (vii) On the Registered Share Delivery Date, a balance (the “Settlement Balance”)
shall be established with an initial balance equal to the applicable amount of the relevant
Early Settlement Payment. Following the delivery of Early Settlement Shares or any
Make-Whole Shares, Seller shall sell all such Early Settlement Shares or Make-Whole Shares
in a good faith and commercially reasonable manner.

     (viii) At the end of each day upon which sales have been made, the Settlement Balance
shall be (A) reduced by an amount equal to the aggregate proceeds received by MSCO upon
settlement of the sale of such Share, and (B) increased by an amount (as reasonably
determined by the Calculation Agent) equal to MSCO’s commercially reasonable funding cost
with respect to the then-current Settlement Balance as of the close of business on such
day.

     (ix) If, on any date, the Settlement Balance has been reduced to zero but not all of
the Early Settlement Shares have been sold, no additional Early Settlement Shares shall be
sold and MSCO shall
promptly deliver to the Issuer (A) any remaining Early Settlement Shares and (B) if
the Settlement

 

 

Confidential Treatment Requested by Broadcom Corporation — #12

Balance has been reduced to an amount less than zero, an amount in cash
equal to the absolute value of the then-current Settlement Balance.

     (x) If, on any date, all of the Early Settlement Shares have been sold and the
Settlement Balance has not been reduced to zero, the Issuer shall promptly deliver to MSCO
an additional number of Shares (“Make-Whole Shares”) equal to (A) the Settlement Balance as
of such date divided by (B) the market value per Share on the date of such delivery as
reasonably determined by the Calculation Agent. This clause (x) shall be applied
successively until the Settlement Balance is reduced to zero.

     (xi) If at any time the number of Shares covered by the Registration Statement is
less than the number of Registered Securities required to be delivered pursuant to this
Section 8(a), the Issuer shall, at the request of MSCO, file additional registration
statement(s) to register the sale of all Registered Securities required to be delivered to
MSCO.

     (xii) The Issuer shall cooperate with MSCO and use all commercially reasonable efforts
to take any other action necessary to effect the intent of the provisions set forth in this
Section 8(a).

     (b) If Issuer timely elects to deliver Early Settlement Shares and Make-Whole Shares by means
of a private placement, the following provisions shall apply:

          (i) all Early Settlement Shares and Make-Whole Shares shall be delivered to the
Seller (or any affiliate of the Seller designated by the Seller) pursuant to the exemption
from the registration requirements of the Securities Act provided by Section 4(2) thereof;

          (ii) Seller and any potential purchaser of any such Shares from the Seller (or any
affiliate of the Seller designated by the Seller) identified by Seller shall have been
afforded a commercially reasonable opportunity to conduct a due diligence investigation
with respect to Issuer customary in scope for private placements of equity securities of
similar size by similar issuers (including, without limitation, the right to have made
available to them for inspection all financial and other records, pertinent corporate
documents and other information reasonably requested by them) and Buyer shall not disclose
material non-public information in connection with such due diligence investigation; and

          (iii) an agreement (a “Private Placement Agreement”) shall have been entered into
between Issuer and the Seller (or any affiliate of the Seller designated by the Seller) in
connection with the private placement of such Shares by Issuer to the Seller (or any such
affiliate) and the private resale of such Shares by the Seller (or any such affiliate),
substantially similar to private placement purchase agreements customary for private
placements of equity securities of similar size by similar issuers, in form and substance
commercially reasonably satisfactory to the Seller and the Issuer, which Private Placement
Agreement shall include, without limitation, provisions substantially similar to those
contained in such private placement purchase agreements relating to the indemnification of,
and contribution in connection with the liability of, the Seller and its affiliates, and
shall provide for the payment by Issuer of all fees and expenses in connection with such
resale, including all reasonable fees and expenses of one counsel for the Seller but not
including any underwriter or broker discounts and commissions, and shall contain
representations, warranties and agreements of Issuer and Seller reasonably necessary or
advisable to establish and maintain the availability of an exemption from the registration
requirements of the Securities Act for such resales.

          (iv) If Issuer elects to deliver Early Settlement Shares to satisfy its payment
obligation of an Early Settlement Payment, neither Issuer nor Seller shall take or cause to
be taken any action that would make unavailable either (i) the exemption set forth in
Section 4(2) of the Securities Act for the sale of any Early Settlement Shares or
Make-Whole Shares by Issuer to the Seller or (ii) an exemption
from the registration requirements of the Securities Act reasonably acceptable to the
Seller for resales of Early Settlement Shares and Make-Whole Shares by the Seller.

 

 

Confidential Treatment Requested by Broadcom Corporation — #13

          (v) On the date requested by MSCO, (A) Issuer shall deliver a number of Early
Settlement Shares equal to the quotient of (I) the relevant Early Settlement Payment divided
by (II) a per share value, determined by MSCO in a commercially reasonable manner and which
may be based on indicative bids from institutional “accredited investors” (as defined in
Rule 501 under the Securities Act of 1933, as amended (the “Securities Act”)) and (B) the
provisions of Sections 8(a)(vii) —(x) shall apply to the Early Settlement Shares delivered
pursuant to this Section 8(b)(v). For purposes of applying the foregoing, the Registered
Share Delivery Date referred to in 8(a)(vii) shall be the date on which Issuer delivers the
Early Settlement Shares.

          (c) The provisions of Section 8(b) shall apply to any then-current Settlement Balance if (i)
on any given day, Issuer cannot satisfy any of the conditions of Section 8(a) or (ii) for a period
of at least ten (10) consecutive Exchange Business Days, MSCO has determined that it is inadvisable
to effect sales of Registered Securities.

          (d) If Issuer elects to deliver Early Settlement Shares to satisfy its payment obligation of
an Early Settlement Payment, then, if necessary, Issuer shall use its commercially reasonable best
efforts to cause the number of authorized but unissued Shares of Common Stock to be increased to an
amount sufficient to permit Issuer to fulfill its obligations to satisfy its payment obligation of
an Early Settlement Payment by delivering Early Settlement Shares.

9. Special Provisions for Merger Events. Notwithstanding anything to the contrary herein or in
the Equity Definitions, to the extent that an Announcement Date for a potential Merger Transaction
occurs during the term of this Transaction and such Announcement Date does not cause this
Transaction to terminate in whole under the provisions of “Extraordinary Event” in paragraph 2
above:

     (a) As soon as practicable following the public announcement of such potential Merger
Transaction, Issuer shall provide MSCO with written notice of such announcement;

     (b) Promptly after request from MSCO, Issuer shall provide MSCO with written notice specifying
(i) Issuer’s average daily Rule 10b-18 Purchases (as defined in Rule 10b-18 under the Exchange Act
(“Rule 10b-18”)) during the three full calendar months immediately preceding the Announcement Date
that were not effected through MSCO or its affiliates and (ii) the number of Shares purchased
pursuant to the block purchase proviso in Rule 10b-18(b)(4) under the Exchange Act for the three
full calendar months preceding the Announcement Date. Such written notice shall be deemed to be a
certification by Issuer to MSCO that such information is true and correct. Issuer understands that
MSCO will use this information in calculating the trading volume for purposes of Rule 10b-18; and

     (c) Issuer acknowledges that any notice delivered under this Section 9 may cause a deemed
Market Disruption Event to occur pursuant to Section 10; accordingly, Issuer acknowledges that its
delivery of such notice must comply with the standards set forth in Section 12(c).

     “Merger Transaction” means any merger, acquisition or similar transaction involving a
recapitalization of Issuer as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act.

10. Seller Adjustments. In the event that Seller determines in its good faith and commercially
reasonable discretion, based on advice of counsel, that it is appropriate with regard to any legal,
regulatory or self-regulatory requirements or related policies and procedures (whether or not such
requirements, policies or procedures are imposed by law or have been voluntarily adopted by Seller,
and including, without limitation, Rule 10b-18, Rule 10b-5, Regulation 13D-G and Regulation 14E,
“Requirements”), for Seller to refrain from purchasing Shares or to purchase fewer than the number
of Shares Seller would otherwise purchase on any Trading Day during the duration of this
Transaction, then Seller may elect to deem that a Market Disruption
Event has occurred and will be continuing on such Trading Day, which shall be a Disrupted Day for
purposes of “Market Disruption Event” above; provided that if any such deemed Market
Disruption Event results in the

 

 

Confidential Treatment Requested by Broadcom Corporation — #14

Scheduled Valuation Date being postponed to a date that is on or
after June 30, 2011 then such postponement will constitute an Additional Termination Event, with
(i) Issuer as the sole “Affected Party”, (ii) the Transaction as the sole “Affected Transaction”
and (iii) such date as the Early Termination Date.

11. Covenants.

(a) The Buyer covenants and agrees:

          (i) that during the term of this Agreement, neither it nor any “affiliated purchaser” (as
defined in Rule 10b-18 under the Exchange Act) shall directly or indirectly (which shall be deemed
to include the writing or purchase of any cash-settled derivative instrument) purchase Shares (or
any security convertible into or exchangeable for Shares) without the prior written approval of
Seller (including, without limitation, any Rule 10b-18 purchases of blocks (as defined in Rule
10b-18 under the Exchange Act)), except through MSCO;

          (ii) that it shall report the Transaction to the extent required under the Exchange Act and
the rules and regulations thereunder;

          (iii) that as of (i) the Trade Date and (ii) the date of any election by Issuer that Shares or
Alternative Delivery Property be delivered by it or by MSCO pursuant to Section 6 or 7, Issuer is
in compliance with its reporting obligations under the Exchange Act and its most recent Annual
Report on Form 10-K;

          (iv) that it is not relying, and has not relied, upon Seller or any of its representatives or
advisors with respect to the legal, accounting, tax or other implications of this Agreement and
that it has conducted its own analyses of the legal, accounting, tax and other implications of this
Agreement, and that Seller and its affiliates may from time to time effect transactions for their
own account or the account of customers and hold positions in securities or options on securities
of the Buyer and that Seller and its affiliates may continue to conduct such transactions during
the term of this Agreement; and

          (v) that the Shares are not, and Issuer will not cause the Shares to be, subject to a
“restricted period” (as defined in Regulation M promulgated under the Exchange Act) at any time
during the Regulation M Period (as defined below) unless Issuer has provided written notice to MSCO
of such restricted period not later than the Scheduled Trading Day immediately preceding the first
day of such “restricted period” (such event, a “Regulation M Event”); Issuer acknowledges that any
such notice may cause a deemed Market Disruption Event to occur pursuant to Section 10;
accordingly, Issuer acknowledges that its delivery of such notice must comply with the standards
set forth in Section 12(c); provided, however, that Issuer may only declare up to 3 Regulation M
Events during the Regulation M Period. “Regulation M Period” means, the period commencing on the
first day of the Initial Hedge Period and ending on the earliest of (i) the Scheduled Valuation
Date, (ii) the third Exchange Business Day immediately following the last day of the Calculation
Period, or such earlier day as elected by MSCO and notified to Issuer (or, if later, the Lock-out
Date), and (iii) in the event Section 6 applies to a Transaction, and Issuer elects to require MSCO
to deliver Shares or Alternative Delivery Property pursuant to such Section 6, the date reasonably
determined by the Calculation Agent and notified to Issuer,

          provided that this Section 11(a) shall not (i) limit the Buyer’s ability, pursuant to
its employee incentive plan or dividend reinvestment program, to re-acquire Shares in connection
with the related equity transactions, (ii) limit Buyer’s ability to withhold shares to cover tax
liabilities associated with such equity transactions or (iii) limit Buyer’s ability to grant stock
and options to “affiliated purchasers” (as defined in Rule 10b-18) or the ability of such
affiliated purchasers to acquire such stock or options, in connection with the Buyer’s compensation
policies for directors, officers and employees or any agreements with respect to the compensation
of directors, officers or employees of any entities that are acquisition targets of Issuer, and in
connection with any such purchase Buyer will be deemed to represent to Seller that such purchase
does not constitute a “Rule 10b-18 Purchase” (as defined in Rule 10b-18) (any such incentive or
compensatory plan, program or policy of Issuer, a “Compensatory Plan”).

 

 

Confidential Treatment Requested by Broadcom Corporation — #15

(b) On each day during the term of the Transaction, on which MSCO effects any purchases of Shares
with respect to the Transaction (other than purchases in connection with any dynamic adjustments to
MSCO’s hedge position in respect of the market risk associated with the equity options embedded in
the Transaction), it shall effect all purchases of Shares made for the purpose of covering any
short position in Shares that was established for the purposes of hedging MSCO’s equity price risk
in respect of the Transaction, in a manner that MSCO reasonably believes, based on the
representations, warranties and agreements of Issuer set forth herein, would comply with the
limitations set forth in clauses (b)(1), (b)(2), (b)(3), (b)(4) and (c) of Rule 10b-18, as if MSCO
were the “Issuer” or an “affiliated purchaser” (as such term is defined in Rule 10b-18) of Issuer
and such rule were applicable to such purchases; provided, however, that it is
understood and agreed that Seller will not be obligated to comply with this paragraph in connection
with Seller’s ability to declare a Valuation Date other than the Scheduled Valuation Date or if an
Event of Default, Additional Disruption Event, Extraordinary Event or Additional Termination Event
occurs.

12. Representations, Warranties and Acknowledgments.

(a) The Buyer hereby represents and warrants to Seller as of the Trade Date that:

          (i) as of the date hereof, the Buyer is not in possession of any material, non-public
information with respect to the Buyer or any of its securities;

          (ii) the transactions contemplated by this Confirmation have been authorized under Buyer’s
publicly announced program to repurchase Shares;

          (iii) the Buyer is not entering into this Agreement (x) to facilitate a distribution of the
Shares (or any security convertible into or exchangeable for Shares) or (y) in connection with a
future issuance of securities, in either case, except in connection with a Compensatory Plan or
other publicly disclosed transaction;

          (iv) the Buyer is not entering into this Agreement to create actual or apparent trading
activity in the Shares (or any security convertible into or exchangeable for Shares) or to raise or
depress the price of the Shares (or any security convertible into or exchangeable for Shares);

          (v) it will not be engaged in an “issuer tender offer” as such term is defined in Rule 13e-4
under the Exchange Act nor is it aware of any third party tender offer with respect to the Shares
within the meaning of Rule 13e-1 under the Exchange Act; and

          (vi) the Buyer is as of the date hereof, and after giving effect to the transactions
contemplated hereby will be, Solvent. As used in this paragraph, the term “Solvent” means, with
respect to a particular date, that on such date (A) the present fair market value (or present fair
saleable value) of the assets of the Buyer is not less than the total amount required to pay the
liabilities of the Buyer on its total existing debts and liabilities (including contingent
liabilities) as they become absolute and matured, (B) the Buyer is able to realize upon its assets
and pay its debts and other liabilities, contingent obligations and commitments as they mature and
become due in the normal course of business, (C) assuming consummation of the transactions as
contemplated by this Agreement, the Buyer is not incurring debts or liabilities beyond its ability
to pay as such debts and liabilities mature, (D) the Buyer is not engaged in any business or
transaction, and does not propose to engage in any business or transaction, for which its property
would constitute unreasonably small capital after giving due consideration to the prevailing
practice in the industry in which the Buyer is engaged and (E) the Buyer is not a defendant in any
civil action that could reasonably be expected to result in a judgment that Buyer is or would
become unable to satisfy.

(b) Seller and the Buyer each hereby acknowledges that any transactions by Seller in the Shares
will be undertaken by Seller, as the case may be, as principal for its own account. All of the
actions to be taken by
Seller in connection with this Agreement, shall be taken by Seller independently and without any
advance or subsequent consultation with the Buyer.

 

 

Confidential Treatment Requested by Broadcom Corporation — #16

(c) 10b5-1 Plan.

          (i) Each of MSCO and Issuer is entering into this Confirmation and the Transaction hereunder
in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1 under
the Exchange Act (“Rule 10b5-1”) or any other antifraud or anti-manipulation provisions of the
federal or applicable state securities laws and, with respect to Issuer, that it has not entered
into or altered and will not enter into or alter any corresponding or hedging transaction or
position with respect to the Shares. Each of MSCO and Issuer acknowledges that it is the intent of
the parties that the Transaction entered into under this Confirmation comply with the requirements
of paragraphs (c)(1)(i)(A) and (B) of Rule 10b5-1 and the Transaction entered into under this
Confirmation be interpreted to comply with the requirements of Rule 10b5-1(c).

          (ii) Issuer will not seek to control or influence MSCO’s decision to make any “purchases or
sales” (within the meaning of Rule 10b5-1(c)(1)(i)(B)(3)) under the Transaction entered into under
this Confirmation, including, without limitation, MSCO’s decision to enter into or unwind any Hedge
Positions in respect of the Transaction. Issuer represents and warrants that it has consulted with
its own advisors as to the legal aspects of its adoption and implementation of this Confirmation
under Rule 10b5-1.

          (iii) Each of MSCO and Issuer hereby acknowledges and agrees that any amendment,
modification, waiver or termination of this Confirmation must be effected in accordance with the
requirements for the amendment or termination of a “plan” as defined in Rule 10b5-1(c). Without
limiting the generality of the foregoing, any such amendment, modification, waiver or termination
shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule
10b-5, and no such amendment, modification or waiver shall be made at any time at which Issuer is
aware of any material non-public information regarding Issuer or the Shares.

13. Acknowledgements of Buyer Regarding Hedging and Market Activity. Buyer agrees, understands
and acknowledges that:

	 	(a)	 	during the period from (and including) the Trade Date to (and including) the
Settlement Date, Seller and its affiliates may buy or sell Shares or other securities
or buy or sell options or futures contracts or enter into swaps or other derivative
securities in order to adjust its hedge position with respect to the transactions
contemplated by this Transaction;
	 
	 	(b)	 	Seller and its affiliates also may be active in the market for the Shares other
than in connection with hedging activities in relation to the transactions contemplated
by this Transaction;
	 
	 	(c)	 	Seller shall make its own determination as to whether, when and in what manner
any hedging or market activities in the Issuer’s securities shall be conducted and
shall do so in a manner that it deems appropriate to hedge its price and market risk
with respect to 10b-18 VWAP; and
	 
	 	(d)	 	any market activities of Seller and its affiliates with respect to the Shares
may affect the market price and volatility of the Shares, as well as the 10b-18 VWAP,
each in a manner that may be adverse to Buyer.

14. In the event that Seller becomes involved in any capacity in any action, proceeding or
investigation brought by or against any person in connection with any matter referred to in this
Agreement to the extent that such action, proceeding or investigation results from the breach by
the Buyer of any of its representations, warranties or covenants hereunder, the Buyer will
reimburse Seller for its reasonable legal and other expenses (including the cost of any
investigation and preparation) incurred in connection therewith. The Buyer also will indemnify and
hold Seller harmless against any losses, claims, damages or liabilities to which it may become
subject in connection with any matter referred to in this Agreement to the extent any such loss,
claim, damage or liability
results from the breach by the Buyer of any of its representations, warranties or covenants
hereunder, except to the extent that any such loss, claim, damage or liability results from the
gross negligence or bad faith of Seller

 

 

Confidential Treatment Requested by Broadcom Corporation — #17

in effecting the transactions which are the subject of this
Agreement; provided, however, that if it is determined by a court of competent jurisdiction in a
final judgment that Seller is not entitled to be indemnified hereunder in connection with such
matter, then Seller shall reimburse the Buyer for any expenses paid pursuant to the first sentence
of this Section 14. If for any reason the foregoing indemnification is unavailable to Seller or
insufficient to hold it harmless, then the Buyer shall contribute to the amount paid or payable by
Seller as a result of such loss, claim, damage or liability in such proportion as is appropriate to
reflect the relative fault of the Buyer on one hand and Seller on the other hand with respect to
such loss, claim, damage, or liability and any other relevant equitable considerations. The
reimbursement, indemnity and contribution obligations of the Buyer under this Section 14 shall be
in addition to any liability which the Buyer may otherwise have, shall extend upon the same terms
and conditions to any affiliate of Seller and the partners, directors, officers, agents, employees
and controlling persons (if any), as the case may be, of Seller and any such affiliate and shall be
binding upon and inure to the benefit of any successors, assigns, heirs and personal
representatives of the Buyer, Seller, any such affiliate and any such person. The Buyer also
agrees that neither Seller nor any of such affiliates, partners, directors, officers, agents,
employees or controlling persons shall have any liability to the Buyer for or in connection with
any matter referred to in this Agreement except to the extent that any losses, claims, damages,
liabilities or expenses incurred by the Buyer result from the gross negligence or bad faith of
Seller in effecting the transactions that are the subject of this Agreement. The foregoing
provisions shall survive any termination or completion of this Agreement. For the purposes of this
Section 14, the term “Seller” shall include MSCO and its affiliates. The foregoing reimbursement,
indemnity and contribution obligations of the Buyer shall be paid promptly in cash.

15. The parties hereto agree and acknowledge that Seller is a “financial participant” within the
meaning of Section 101(22) of Title 11 of the United States Code (the “Bankruptcy Code”). The
parties hereto further agree and acknowledge that this Transaction is either (i) a “securities
contract” as such term is defined in Section 741(7) of the Bankruptcy Code, in which case each
payment and delivery made pursuant to this Transaction is a “settlement payment”, as such term is
defined in Section 741(8) of the Bankruptcy Code, and that Seller is entitled to the protections
afforded by, among other sections, Sections 362(b)(6), 546(e) and 555 of the Bankruptcy Code, or
(ii) a “swap agreement”, as such term is defined in Section 101(53B) of the Bankruptcy Code, in
which case each party is a “swap participant”, as such term is defined in Section 101(53C) of the
Bankruptcy Code, and that Seller is entitled to the protections afforded by, among other sections,
Sections 362(b)(17), 546(g) and 560 of the Bankruptcy Code.

16. Seller and Issuer hereby agree and acknowledge that Seller has authorized the Issuer and each
of its employees, representatives and other agents to disclose this Transaction, including the tax
treatment and tax structure thereof and all materials relating thereto, to any and all persons, and
there are no express or implied agreements, arrangements or understandings to the contrary, and
authorizes the Issuer to use any information that the Issuer receives or has received with respect
to this Transaction in any manner.

17. Treatment in Bankruptcy; No Setoff; No Collateral.

     (a) In the event the Buyer becomes the subject of proceedings (“Bankruptcy Proceedings”)
under the U.S. Bankruptcy Code or any other applicable bankruptcy or insolvency statute from time
to time in effect, any rights or claims of Seller hereunder in respect of this transaction shall
rank for all purposes no higher than, but on a parity with, the rights or claims of holders of
Shares, and Seller hereby agrees that its rights and claims hereunder shall be subordinated to
those of all parties with claims or rights against the Buyer (other than common stockholders) to
the extent necessary to assure such ranking. Without limiting the generality of the foregoing,
after the commencement of Bankruptcy Proceedings, the claims of Seller hereunder shall for all
purposes have rights equivalent to the rights of a holder of a percentage of the Shares equal to
the aggregate amount of such claims (the “Claim Amount”) taken as a percentage of the sum of (i)
the Claim Amount and (ii) the aggregate fair market value of all outstanding Shares on the record
date for distributions made to the
holders of such Shares in the related Bankruptcy Proceedings. Notwithstanding any right it might
otherwise have to assert a higher priority claim in any such Bankruptcy Proceedings, Seller shall
be entitled to receive a distribution solely to the extent and only in the form that a holder of
such percentage of the Shares would be entitled to receive in such Bankruptcy Proceedings, and,
from and after the commencement of such Bankruptcy

 

 

Confidential Treatment Requested by Broadcom Corporation — #18

Proceedings, Seller expressly waives (i) any other rights or distributions to which it might
otherwise be entitled in such Bankruptcy Proceedings in respect of its rights and claims hereunder
and (ii) any rights of setoff it might otherwise be entitled to assert in respect of such rights
and claims.

     (b) Notwithstanding any provision of this Agreement or any other agreement between the
parties to the contrary, neither the obligations of the Buyer nor the obligations of Seller
hereunder are secured by any collateral, security interest, pledge or lien.

18. Share Cap. Notwithstanding any other provision of this Agreement to the contrary, in no event
shall the Buyer be required to deliver to Seller a number of Shares that exceeds the Share Cap (as
specified in Schedule I), subject to reduction by the number of Shares delivered hereunder by the
Buyer on any prior date.

19. Illegality. The parties agree that for the avoidance of doubt, for purposes of Section
5(b)(i) of the Agreement, “any applicable law” shall include the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010, any rules and regulations promulgated thereunder and any similar
law or regulation, without regard to Section 739 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010 or any similar legal certainty provision in any legislation enacted, or rule
or regulation promulgated, on or after the Trade Date, and the consequences specified in the
Agreement, including without limitation, the consequences specified in Section 6 of the Agreement,
shall apply to any Illegality arising from any such act, rule or regulation.

	20.	 	Account Details:

	 	 	 	 	 

	 

	 	Account for Payments to MSCO:
	 	Citibank NY
	 
	 	 	 	 
	 

	 	 	 	[*]
	 
	 	 	 	 
	 

	 	 	 	Morgan Stanley
	 
	 	 	 	 
	 

	 	 	 	[*]
	 
	 	 	 	 
	 

	 	 	 	Broadcom Corporation
	 
	 	 	 	 
	 

	 	 	 	[*]
	 
	 	 	 	 
	 

	 	Account for Payments to Issuer:
	 	To be provided by Issuer

	21.	 	Contact Details for Purposes of Giving Notice:

	 	 	 	 	 

	 

	 	If to MSCO:
	 	Anthony Cicia
	 

	 	 	 	Email: Anthony.Cicia@morganstanley.com
	 

	 	 	 	Phone: 212-761-7959
	 
	 	 	 	 
	 

	 	If to Issuer:	 	 

	22.	 	Governing law: The laws of the State of New York.

	 	 	 	EACH PARTY HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY WITH RESPECT
TO ANY LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS CONFIRMATION OR ANY TRANSACTION
CONTEMPLATED HEREBY.

 

			
	*	 	This information has been omitted based on a request for confidential treatment. The omitted portions have been separately filed with the Securities and Exchange Commission.

 

 

Confidential Treatment Requested by Broadcom Corporation — #19

Please confirm that the foregoing correctly sets forth the terms of our agreement by executing this
Confirmation and returning it to us by facsimile to the number provided on the attached facsimile
cover page.

Confirmed as of the date first written above:

	 	 	 	 	 	 	 

	BROADCOM CORPORATION	 	MORGAN STANLEY & CO. INCORPORATED
	 
	By: 	 /s/ Eric Brandt	 	By: 	
/s/ Serkan Savasoglu
	 	Name: 	 Eric Brandt	 	 	Name: 	 Serkan Savasoglu
	 	Title:	 EVP and CFO	 	 	Title:	 Managing Director

 

 

Confidential Treatment Requested by Broadcom Corporation — #20

Schedule I

This Schedule I, dated February 1, 2011 may be amended and/or superseded from time to time by
mutual agreement of both parties. For the purposes of this Transaction, the following terms shall
have the following values/meanings:

Tranche #1:

1. The Trade Date shall be February 2, 2011

2. The Forward Cap Price equals [*]% of the Initial Hedge Period Reference Price

3. The Forward Floor Price equals [*]% of the Initial Hedge Period Reference Price

4. The Discount Percentage equals [*]%

5. The Initial Shares equal 2,177,339.

6. The Prepayment Amount equals USD 150,000,000.

7. The Commission Amount equals [*]

8. The Adjustment Amount equals [*]

9. The Structuring Fee equals [*]

10. The Scheduled Valuation Date shall mean the [*]th Scheduled Trading Day following
the Initial Hedge Completion Date.

11. The Lock-Out Date shall mean the [*]th Scheduled Trading Day following the Initial
Hedge Completion Date; provided that under any circumstances where the Calculation Period is
extended, the Lock-Out Date shall be postponed by an equal number of Observation Dates.

12. Observation Dates: [*]

Tranche #2:

1. The Trade Date shall be February 2, 2011

2. The Forward Cap Price equals [*]% of the Initial Hedge Period Reference Price

3. The Forward Floor Price equals [*]% of the Initial Hedge Period Reference Price

4. The Discount Percentage equals [*]%

5. The Initial Shares equal 2,177,339.

6. The Prepayment Amount equals USD 150,000,000.

7. The Commission Amount equals [*]

8. The Adjustment Amount equals [*]

9. The Structuring Fee equals [*]

 

			
	*	 	This information has been omitted based on a request for confidential treatment. The omitted portions have been separately filed with the Securities and Exchange Commission.

 

 

Confidential Treatment Requested by Broadcom Corporation — #21

10. The Scheduled Valuation Date shall mean the [*]th Scheduled Trading Day following
the Initial Hedge Completion Date. 

11. The Lock-Out Date shall mean [*]th Scheduled Trading Day following the Initial
Hedge Completion Date; provided that under any circumstances where the Calculation Period is
extended, the Lock-Out Date shall be postponed by an equal number of Observation Dates.

12. Observation Dates: [*]

GENERAL:

The Share Cap (applicable to both Tranches in aggregate) shall equal the lesser of (i) 12.96
million Shares and (ii) 20% of the total number of Shares that Issuer has outstanding as of any
day.

 

			
	*	 	This information has been omitted based on a request for confidential treatment. The omitted portions have been separately filed with the Securities and Exchange Commission.

 

 

Confidential Treatment Requested by Broadcom Corporation — #22

AGREED AND ACKNOWLEDGED (as of the date listed above)

BROADCOM CORPORATION

	 	 	 

	/s/ Eric Brandt
 

Name: Eric Brandt

	 	 
	Title: EVP and CFO
	 	 

MORGAN STANLEY & CO. INCORPORATED

	 	 	 

	/s/ Serkan Savasoglu
 

Name: Serkan Savasoglu

	 	 
	Title: Managing Director

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